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HomeMy WebLinkAboutEDA PACKET 01.15.19AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, JANUARY 15, 2019 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt, Wilson) 5:02 pm 3. Approval of Minutes EDA Meeting of December 18, 2018 5:03 pm 4. Update on the Open to Business Program for 2018 • Tyler Hilsabeck, Washington County Business Advisor 5:40 pm 5. Approve 2019 Goals 5:50 pm 6. Update on Downtown Redevelopment 6:00 pm 7. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, JANUARY 15, 2019 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the December 18, 2018, EDA meeting as presented. 4. UPDATE ON THE OPEN TO BUSINESS PROGRAM FOR 2018 Staff invited Tyler Hilsabeck, Business Advisor of Washington County, to give the EDA an update on the Open to Business program for the year of 2018. Open to Business provides free, corifidential business counseling to current and prospective entrepreneurs as small businesses are vital to the communities around us. The Open to Business Program has been available in Washington County since 2017. Hilsabeck will focus on the happenings in the City of Hugo and the surrounding communities. 5. APPROVE 2019 GOALS At the last EDA meeting, staff reviewed the goals set in 2018 and the accomplishments of the EDA throughout the year. Many of the goals set in 2018 were met and others were kept as ongoing priorities. The EDA suggested that the comprehensive plan process be removed from the goals and added Economic Development Work Plan as a goal. The EDA directed staff to draft the 2019 goals for review and approval at the next EDA meeting. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will provide an update on downtown redevelopment at the meeting. MINUTES FOR THE EDA MEETING OF DECEMBER 18, 2018 Weidt called the meeting to order at 5:05 pm. PRESENT: Gallivan, Klein, Petty, Puleo, Wilson, Weidt ABSENT: Denaway, Houle STAFF: Bryan Bear, City Administrator Rachel Juba, Community Development Director Emily Weber, Community Development Assistant APPROVAL OF MINUTES FOR THE EDA MEETING OF NOVEMBER 20, 2018 Klein made a motion, Gallivan seconded, to approve minutes for the EDA meeting of November 20, 2018. All Ayes. Motion carried. PRESENTATION ON 2018 EDA ANNUAL REPORT Staff presented the 2018 EDA Annual Report that highlights many of the industrial and commercial businesses that have located in Hugo in the past year. Schwieters Manufacturing, TGK Automotive, Good Life Senior Living, and Xcel Energy Training Town were among the economic development activity discussed. Staff reported five new industrial and commercial permits were issued in 2018, with their total valuation of $9.9 million. Staff continues to see business expansion and interests in Hugo. The EDA was generally impressed with the economic activity of 2018. Juba continued on to discuss the 2018 Work Plan goals and activities. Many of the goals were reached or in the process of being completed, while many goals are ongoing. The EDA agreed to continue working on the Economic Development Work Plan in 2019. REVIEW 2018 GOALS AND SET 2019 GOALS Juba reviewed the goals set in 2018 and the accomplishments of the EDA. The goals of the EDA have been kept as ongoing priorities. The EDA gave staff input for the 2019 goals and suggested that the comprehensive plan process be removed from the goals and changed to updating the Economic Development Work Plan. The EDA directed staff to draft the 2019 goals for review and approval at the next EDA meeting. UPDATE ON DOWNTOWN REDEVELOPMENT Staff provided an update to the EDA on downtown redevelopment. Juba noted the progress on O'Reilly and stated that they will be moving forward in the spring. The City continues to work with the Cosgroves and their purchase agreement that includes City owned property in the downtown area. The Cosgroves have proposed to build a Cozzie's Tavern and Grill and are looking to get a better understanding on the interest in the community. The EDA is pleased with the concept and is looking forward to seeing their progress. ADJOURNMENT Commissioner Klein made a motion, seconded by Commissioner Gallivan, to adjourn at 6:13 pm. All ayes. Motion carried. Respectfully submitted. Emily Weber, Community Development Assistant TO BUSINESS Updates WASHINGTON COUNTY Open To Business Tyler Hilsabeck — Business Advisor 1/1/2018 —12/31/2018 Clients Served —125 Business Stage: Existing Business — 75 New Entrepreneurs/Start-up/Pre-planning — 43 Client Inquiry — 7* *Many Client Inquiries turn into client relationships later. Program Hours: (Includes Direct Client Hours, Program Outreach & Marketing, Public Events/City Meetings, Data Collection and Administration) Total Hours 1� QTR 501.5 2nd QTR 504.0 3rd QTR: 490.0 4t' QTR: 485.0 Total: 1,980.5 Financing thru 12/31/18: Loans Approved: Number - 8 Amount - $392,500 Leveraged - $1,698,000 (Bank/Owner Equity/Other Outside Financing) Loan Pipeline: Loans in Pipeline: Number - 4 Amount - $375,000 Leveraged - $2,775,000 (Bank/Owner Equity/Other Outside Financing) Referral Source City Website/Newsletters/Utility Inserts — 58 Other Marketing/Networking/Internet — 34 Bank Referral — 14 Friends/Family — 19 Industry Segment Service — 57 Retail —16 Food - 16 Manufacturing — 11 Construction/Real Estate — 6 Heath/Fitness - 3 Professional/Consulting — 13 Technology - 3 Client City LBusiness Location 1 Resident Location Afton (1/0) Bayport (3 / 1) Cottage Grove (19/19) Forest Lake (14/14) Hastings (1/2) Hugo (6 / 4) Lake Elmo (6/5) Lake St. Croix Beach (1/0) Lakeland (2/2) Mahtomedi (2/3) Marine on St. Croix (3/4) Oak Park Heights (1 / 1) Oakdale (10/9) Scandia (6/6) St. Paul Park (3 / 2) Stillwater (29/30) White Bear Lake (i / 1) Willernie (2/2) Woodbury (15/15) y 2019 Goals Economic Development Authority (EDA) • Continue strategic plan to market the City owned property in downtown -Reach out to commercial real estate brokers to promote redevelpoment of the Egg Lake Property -Assist and encourage redevelopment of other properties in downtown • Continue low development costs • Continue business visits • Review resource lists for business • Encourage the extension of high speed internet through -out the City • Continue memberships of economic devleopment associations • Encourage moving forward with installing City entrance monument signs • Encourage businesses to identify themselves as being located in Hugo -Attend Technology Corridor (I35E) meetings • Review and implement the work plan • Continue partnering with local businesses • Continue to partner with Washington County on its Economic Development Strategic Plan •Invite Economic Development experts to EDA meetings for education and training on certain topics • Meet with property owners with property for sale to see if there is any way the City can help