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Home My WebLink AboutEDA Packet 07.15.17AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, August 15, 2017 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt) 5:02 pm 3. Approval of Minutes • EDA Meeting of June 20, 2017 5:03 pm 4. Update on Washington County Economic Development 5:15 pm 5. Update on Property Owner Meetings 5:30 pm 6. Update on Downtown Redevelopment 6:30 pm 7. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, AUGUST 15, 2017 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the June 20, 2017, EDA meeting as presented. 4. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT Staff will update the EDA on the Washington County CDA's action steps in implementing its economic development strategic plan. 5. UPDATE ON PROPERTY OWNER MEETINGS Staff is been meeting with property owners on the status of their property and what their desires are for the property in the future. Staff will provide an update the on the meeting to date. Staff will continue to meet with more property owners. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will provide an update on downtown redevelopment at the meeting. MINUTES FOR THE EDA MEETING OF JUNE 20, 2017 Weidt called the meeting to order at 5:02 pm. PRESENT: Denaway, Gallivan, Houle, Klein, Petty, Weidt. ABSENT: Puleo STAFF: Bryan Bear, City Administrator Rachel Juba, Planner Sarah Rumppe, Community Development Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF March 21, 2017 Klein made a motion, Gallivan seconded, to approve minutes for the EDA meeting of March 21, 2017. All Ayes. Motion carried. APPROVAL OF MINUTES FOR THE EDA MEETING OF MAY 162 2017 Klein made a motion, Houle seconded, to approve minutes for the EDA meeting of May 16, 2017. All Ayes. Motion carried. DISCUSSION ON URBAN LAND INSTITUTE (ULT) WORKSHOP Juba gave a recap of the ULI workshop. Juba discussed how the feedback from the workshop relates to the comprehensive plan. Before opening the discussion to the EDA, Juba stated a focus on communication will be important when working with developers. Klein noted feeling surprised by companies in which are may not provide wages high enough to support living in Hugo. Denaway discussed the difficultly of attracting development in Hugo. "There is a story here that is not being told", he stated. Denaway expressed the belief that development is not seeing the potential in Hugo because quick drive-by tours or demographic studies fail to tell the City's story. He urged the importance of finding ways to tell Hugo's story to the development community. Houle noted there is a difference between understanding the community's demand for commercial services, versus the considerations of developers. Houle stated development may be more successful if the city puts itself in the mindset of the developers, and markets from that position. Petty stated the ULI's suggestion not to force development is conflicting, because it seems the city needs to actively market to developers, rather than wait for them to come on their own. Juba noted the market is evolving, and modes of buying and selling are transitioning away from traditional retail models. Bear questioned how the city should position itself for economic development if the market is changing. He stated Hugo is not overcrowded with retail, which may be an advantage if the market is changing. Bear noted commercial spaces built from now on will likely be different from what was built before. Bear eluded to Hugo's opportunity to develop towards a new retail model, instead of building something the market may be abandoning. Bear noted the large number of medical businesses in Hugo, which have a number of well paid employees who create a daytime population. He also noted the daytime population provided by construction workers, although temporary, creates a notable customer base developers should consider. Denaway stated Bear's comment is an example Hugo's story that is not being told. The EDA discussed frustration about the lakeside property across the street, which is failing to attract development. Petty stated the food trucks may have the biggest advantage, because they can serve the flexible daytime consumer base, without having to build on the land. Houle opened discussion about what the future of retail may be. Bear stated the retail model of a big store with a lot of stuff to buy may be dying out, and retail may become experience based. Klein stated even if traditional model dies out, people will still be buying things, thus manufacturing will remain. Klein suggested a move towards manufacturing may be a good route for development. UPDATE ON RAIL LINE Bear summarized the Twin Cities Business article about the short line rails. Bear discussed the high level of involvement and support from the White Bear Chamber and many rural legislatures. Bear stated the support came from the chamber's recognition of interdependencies between businesses connected to short line rails. Bear stated the approved bond will be allocated through MNDOT and go straight to the railroad, despite Hugo being listed as the recipient. Weidt and Houle agreed this case sets a strong and positive precedent for the importance of short line rails in preserving jobs across the state and region. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT Bear updated Washington County's move towards branding themselves as "East Metro" rather than "Washington County". He stated this is a part of a finalizing marking strategy in Washington County, because "East Metro" is more relatable. Bear updated Washington County will be featured in the Twin Cities Business Magazine, and told the EDA there is an opportunity to advertise in the article. Bear also gave an update on The Open to Business program, which will begin in July. Weidt asked the EDA they are interested in advertising in the magazine. Bear stated the decision is open. Petty noted this may be a unique publication for the city to participate in. Bear stated he expects the audience will be generally the same to previous marketing efforts. Houle stated the chances of a positive return seem slim Weidt stated this is an expensive opportunity, but an interesting one. Klein stated participation in the ad could show Washington County Hugo is on board with its efforts, and could portray the city in a positive light. The board voted Klein motioned for a full page ad for a total of $5,000 in the Twin Cities Business Magazine. Weidt seconded. Roll call vote: Aye: Gallivan, Klein, Petty and Weidt Nay: Denaway and Houle Motion carried. UPDATE ON DOWNTOWN REDEVELOPMENT Bear opened the discussion with feedback from the ULI workshop, which highlighted the lack of a drug store in Hugo despite the city's abundance of medical services. Bear updated interest has been expressed by drug store developers, who seem to prefer to locations along HWY 61. Bear also stated restaurant developers have been showing more interest in Hugo. Finally, Bear updated the EDA on Xcel Energy's plan to expand its training facility. Bear stated the timeline of the project is dependent on energy sales over the coming years. Weidt asked for an update on the O'Reily development. Bear stated the property owners seem to have put things on hold, which may be due to cost and development conditions. Bear updated the city will be working this summer to connect with property owners and develop an inventory of the status and desires for their land. Houle opened discussion about what types of projects have shown interest in the downtown property. Bear stated many excited developers have toured the property, but it has been difficult to find developers with enough experience to execute their ideas. ADJOURNMENT Klein made a motion, seconded by Houle, to adjourn at 6:23 pm. All ayes. Motion carried. SPONSORED 9Y slumbedmd F U R N I T U R E A < V > ROIN'T Techna`,ogy 4 affico Campus Tildes DUSINF JOIN US! Join us at as we reveal and share the first took at the Washington County profile published in the September issue of Twin Cities Business magazine. This special section shines a light on the impressive array of assets and attributes of the 33 cities of Washington County, and why it's a great place to have a business, work and live. This event is hosted by StUrnbcHand and 41FRONT, and celebrates a collaboration between Twin Cities Business, Washington County CDA, the cities of Washington County, and the local business community to help tell the area's story to others across our state. Join fellow business leaders to give cheers to: Washington County. Thursday, August 24 4:OOPM -6:OOPM 4Front Technology & Office Campus 1 Imation Place Building 4, Main Entrance Oakdale, MIN 55128 This message sent to RJuba@ci.hugo.mn.us by ashapiro@msp-c.com. MSP Communications 220 South 6th Street Rachel Juba Subject: FW: You're invited to Open to Business Rollout - Hugo (Aug 25, 2017) Hello, You are invited to the following event: OPEN TO BUSINESS ROLLOUT - HUGO Event to be held at the following time, Woolwwwa date, and location: Friday, August 25, 2017 from 7:30 AM to 8:30 AM (CDT) Hugo City Hall Large Meeting Room 14669 Fitzgerald Ave N Hugo 55038 Share this event: 11130 Please join us for the Open to Business Kick -Off meeting in Hugo! The event will be to introduce the Washington County Open to Business Program to area small businesses and entrepreneurs, and will offer details on how Open to Business partners with Local Lenders, Chambers, and City Officials and Staff, to support and grow the small business community in Hugo, Marine on St. Croix, Forest Lake and Scandia. We look forward to seeing you there! Share this event on Facebook and Twitter We hope you can make it! 1