HomeMy WebLinkAboutEDA PACKET 06.18.19AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
TUESDAY, JUNE 18, 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 March 19, 2019
5:03 pm 4. Update on Economic Development Work Plan
5:30 pm 5. Update on Technology Corridor
5:45 pm 6. Update on Downtown Redevelopment
6:00 pm 7. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, JUNE 18, 2019
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the March 19, 2019 EDA meeting as presented.
4. UPDATE ON ECONOMIC DEVELOPMENT WORKPLAN
The Economic Development Work Plan was approved on August 21, 2018 by the EDA. The Work Plan
outlines six goals the EDA has in order to create a thriving community with diverse jobs and tax base,
brought about by specific emphasis on business retention, business expansion, and business attraction.
The EDA has been focusing on goals throughout the year and as goals are being met, staff recommends
the EDA discuss future goals. Staff will provide a background on what action steps have been completed.
5. UPDATE ON TECHNOLOGY CORRIDOR
Over the last few months, staff has been meeting with Washington and Anoka County Economic
Development staff, including communities along I -35E, to discuss the possibility of a technology corridor.
The group has been working together to discuss how to best market properties in each community for
locations for high data users, such as data centers or engineering firms. Chris Eng with the Washington
County CDA and Bruce Sayler with Connexus Energy have been leading the group in discussions working
on developing a launch video and website. Staff will update the EDA on the progress of the technology
corridor.
6. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will provide an update on downtown redevelopment at the meeting.
MINUTES FOR THE EDA MEETING OF MARCH 19, 2019
Klein called the meeting to order at 5:05pm.
PRESENT: Gallivan, Houle, Klein, Petty, Puleo, Wilson
ABSENT: Denaway, Weidt
STAFF: Bryan Bear, City Administrator
Rachel Juba, Community Development Director
Emily Weber, Community Development Assistant
APPROVAL OF MINUTES FOR THE EDA MEETING OF JANUARY 15, 2019
Puleo made a motion, Petty seconded, to approve minutes for the EDA meeting of January 15, 2019 with
the condition that Commissioner Wilson be marked as present.
All Ayes. Motion carried.
UPDATE ON TECHNOLOGY CORRIDOR
Bruce Sayler with Connexus Energy and Chris Eng from Washington County CDA was present to update
the EDA on the MN Technology Corridor. Over the last few months, City staff has been in collaboration
with Washington and Anoka County Economic Development staff along with staff from neighboring
communities and representatives from utility providers to discuss the possibility of a technology corridor
along I -35E. The team is working together to market ideal sites in each community for locations for high
data users such as data centers or engineering firms. Typically, site selectors for data centers are looking
for cooler climates, close proximity to population centers, and large tracts of land that have direct access
to fiber connectivity. Potential data centers will also benefit the local communities by providing large
local investment and high paying jobs. Eng stated that they are in the process of creating a website that
will market available sites and will be launching in July 2019. Fran Miron was also present to support
the project and the efforts of all entities working to develop the technology corridor. The EDA expressed
their optimism and enthusiasm towards the technology corridor and the potential opportunities it could
provide to Hugo and surrounding communities.
DISCUSSION ON BR&E PROGRAM OUTLINE
Juba provided the Business Retention and Expansion Program objectives for 2019 as discussed by the
EDA at the end of 2018. Among others, these objectives include demonstrating support and appreciation
for existing businesses as well as identifying potential opportunities for new businesses that can
complement the existing businesses in the City. The Hugo BR&E Program will involve informal
business meetings, and possible tours of the businesses, with the Mayor and staff. Staff will coordinate
the business visits and all EDA members will be invited to attend each site visit. Onsite business visits
will be conducted with a very informal and short survey. The EDA discussed the pros and cons of an
informal versus vigorous BR&E Program and is general comfortable with continuing on the path of
informal site visits at local businesses. Staff will regularly provide the EDA with updates, however, will
maintain confidentiality shall it be requested by the businesses.
KIDZ N' BIZ SPONSOR REQUEST
Staff informed the EDA that the annual Kidz N' Biz will take place on April 6, 2019 at Oneka Elementary
School. This annual event is an opportunity for the HBA and Hugo EDA to directly connect with
community members in an informal setting. The EDA has regularly supported the event with a sum
amount of $750. The HBA asked for the EDA to sponsor in that same amount again this year.
Petty motioned to approve the recommendation to the City Council, from the EDA, to sponsor the Kidz
N' Biz event with the amount of $750. Gallivan seconded.
UPDATE ON DOWNTOWN REDEVELOPMENT
Staff provided an update to the EDA on downtown redevelopment. Juba stated that the purchase
agreement on City owned property with the Cosgroves terminated and a letter was sent out in the end of
February. Staff noted that the site is still an excellent site for a restaurant user and there is a heightened
increase on the property. Staff continues to meet with potential buyers to discuss the site.
ADJOURNMENT
Commissioner Puleo made a motion, seconded by Commissioner Gallivan, to adjourn at 6:32 pm.
All ayes. Motion carried.
Respectfully submitted.
Emily Weber, Community Development Assistant
2018-2019
Hugo EDA
Economic Development Work Plan
Approved August 21, 2018
The mission of the Hugo Economic Development Authority (EDA) is to create a
thriving community with diverse jobs and tax base, brought about by specific emphasis on
business retention, business expansion, and business attraction.
1. Create an Infrastructure and Concept Plan for 165th Street and Highway 61.
2. Promote Downtown Development/Redevelopment Opportunities
3. Update the Hugo EDA Website
4. Create and Maintain a Business Resource List
5. Meet with Property Owners and Create an Inventory of Potential Development Sites
6. Explore Options for a Business Retention and Expansion Program
The purpose of this document is to serve as the Hugo EDA 2018 Economic Development
Strategic Plan with a planning horizon through 2019.
To assist in the EDA's discussion and to help achieve the goals and action steps identified within
this plan, a summary of the February 2017 group discussion from the 2040 Comprehensive Plan
Update is included as Attachment A.
1
1. Conduct an Infrastructure Feasibility Study and Concept Plan for Business
Development Opportunities at 165th Street and Highway 61.
Action Step: Enter into a professional service agreement with WSB & Associates, Inc. to:
1) Identify potential end users of the created parcels to create appropriate sized parcels.
2) Prepare concept of roadway and lot layouts.
3) Review connectivity to adjacent roadways.
4) Review and make recommendations related to necessary roadway improvements
(internal and adjacent).
Action Step: Enter into a professional service agreement with Springstead Financial Advisors to:
1) Complete a business incentive analysis, (Tax Increment Financing and Tax
Abatement) for the proposed new industrial park development based upon maximum
allowable build -out.
2) Review the subsidy projections to the estimated cost of public improvements
attributable to the development parcel amount of capital investment required to fund the
necessary public improvements.
3) Outline the procedural process through which a potential economic development
project could access public assistance.
4) Present to the City of Hugo staff, EDA and City Council an analysis and
projections.
Action Step: The EDA will review the WSB and Springstead findings and reports upon
completion and discuss options and plans on moving forward.
Deliverables: This infrastructure feasibility and concept plan will begin in the third quarter of
2018 and be completed by December 31, 2018.
Program Cost: $2,100 to be matched with $9,900 in grant funds from the Washington County
CDA.
2. Promote Downtown Development/Redevelopment
Action Step: City staff with assistance from Washington County CDA staff will update
information (including traffic counts) to promote and market the City owned property by
advertising and presenting on a panel at the MN Real Estate Journal East Metro Development
Summit on July 27th 2018 in St. Paul.
2
Action Step: City staff, CDA staff and the Hugo EDA will utilize various marketing tools and
events to promote and advertise the available city owned land in the downtown. Goal of at least
2 ads in the Minnesota Real Estate Journal 2018 and 2 in 2019.
Action Step: City staff with the assistance of CDA staff will coordinate promotional efforts and
attend the Minnesota Commercial Association of Realtors (MNCAR) Expo in Minneapolis in
October 2018 and 2019 to connect with site selectors and developers.
Action Step: City staff with the assistance of CDA staff will meet with and work with potential
developers and downtown surrounding property owners whenever possible to promote new
opportunities for business development and redevelopment along the Highway 61 corridor.
Deliverables: Property owner, developer and site selector meetings will be held beginning in
the third quarter of 2018 and will be ongoing. Promotional information and marketing materials
for the downtown area and available sites will be updated immediately and the maintaining of
these materials will be ongoing.
Action Step: Explore updating the 2013 downtown commercial area market study. City staff
will get cost estimates, develop a list of options and present information to the EDA for
consideration.
Deliverables: The Hugo EDA explore hiring a consultant to update/undertake a market study
and then report back to the EDA Board, City Council and other local community organizations.
The market study update will begin in 2019 or sooner contingent on available funding.
Program Cost: TBD
3. Update the Hugo EDA Website
Action Step: City staff with the assistance of CDA staff will explore opportunities to update and
improve the Hugo EDA website. Updates to the EDA website will include maintaining a list of
commercial, industrial and residential projects that are in the planning process, under
construction and recently completed.
Action Step: City staff will showcase more economic development stories and business updates
on the EDA website as well as in the City's Newsletter.
Deliverables: Staff will explore options to update the EDA's web presence including,
considerations for a potential different web platform, adding an inventory of available land and
buildings, listing available business resources and developing a digital marketing plan and
materials {digital rollout} for business recruitment, expansions and retention. This will begin in
the third quarter of 2018 and will be ongoing. Recommendations will be provided to the EDA
members on a regular basis for discussion and input.
Program Costs: TBD
4. Create and Maintain a Business Resource List
Action Step: The EDA will create and maintain a current list of state, county, city and other
resources to assist businesses with expansions and new development in the city. This business
resource list will be included on the EDA website.
Deliverables: The creation of the business resource list will begin immediately (third quarter of
2018) and will be maintained on an ongoing basis.
5. Meet with Property Owners/Keep an Inventory of Available Properties
Action Step: City staff with the assistance of CDA staff will meet with interested property
owners on an ongoing basis to determine the level of interest in selling, appropriate contact,
proposed timing, asking price, and any other relevant information that might be used for
planning purposes and directing future inquiries.
Action Step: City staff with the assistance of CDA staff will partner with commercial realtors,
building owners and businesses to be a resource whenever possible to identify commercial and
industrial land development/redevelopment opportunities. An inventory of available properties
and vacant buildings will be maintained to attract new businesses and promote higher building
occupancy.
Deliverables: The EDA will be updated at regularly scheduled meetings on the progress and
outcomes of the meetings with property owners, developers and site selectors. This will begin in
the third quarter of 2018 and will be ongoing.
6. Explore Options for a B, R&E Visitation Program
Action Step: The City and CDA staff will research and explore options for a business retention
and expansion program. City staff with the assistance of CDA staff will evaluate costs, timing,
create a business survey and discuss the potential interview process and overall program
operations. Recommendations will be brought to the EDA for consideration, input and
discussion.
Action Step: The Hugo EDA will explore developing a business appreciation certificate
program to recognize, show our appreciation and highlight local businesses and employers on a
quarterly basis at regularly scheduled EDA Board meetings.
Deliverables: City staff will be providing options to EDA for discussion and consideration. This
will begin in the second quarter of 2019.
Program Costs: TBD
rd
7. Discussion Item (Reaffirm the EDA's structure, mission, vision, staffing)
Action Step: City staff with the assistance of CDA staff will compare and contrast other local
EDA's for the Board's discussion purposes to review and reaffirm the Hugo EDA for future
planning as it relates to organizational structure, budget, staffing and operational aspects of the
Hugo EDA.
Deliverables: This will begin in the first quarter of 2019 and be ongoing.
Attachment A
2040 Hugo Comprehensive Plan
Strengths, Opportunities, Weaknesses,
Stand -in -the -Way Group Discussion
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Comprehensive Plan Update 2040
Council & Commission Kickoff Meeting
February 27, 2017 Meeting Summary
Meeting Attendees
Tom Weidt — Mayor
Joe Hoyle — EDA
Becky Petryk — City Council
Phil Klein — City Council
Bronwen Kleissler — Planning Commission
Cindy Petty — EDA
Mike Gallivan — EDA
Mike Miron - City Council
Scott Arcand — Planning Commission
Chantell Knauss — Planning Commission
Cathy Moore-Arcand — Parks Commission
Ranell Tennyson — Parks Commission
David Strub — Parks Commission
Nicole Schmid — Parks Commission
Cynthia Schoonover — Historical Commission
Andrew Tjernlund, new PC member - did not attend, sent replies via email.
fW-w
CITY C]F
Comprehensive Plan Update 2040
EST. 1908
Small Group Discussion—Responses
Objective: To identify strengths and weaknesses in the current Hugo 2030 Comprehensive
Plan.
What are Hugo's greatest strengths? What makes the City a great place to live? Please
list at least 5 things you think make Hugo great. (Strengths can refer to the community,
the people, public facilities, natural resources, character, governance, etc.)
Large Group Discussion
• Great community members*
o Strong support network
o Welcoming
o Small town feel
o Generational "Deep Roots"
• Beautiful landscape, lots of open space*
• Great location*
• Great schools*
• Wonderful parks*
• On cutting edge of water conservation, re -use
• Collaborative community with other cities, school districts, and agencies*
• Low taxes for area*
• Strong community leadership, great staff, honest people
• Diversity of housing types
o allow people to stay in Hugo as they age
o Something for everyone (rural, urban)
• Functional government
• Safe
• Business Friendly
• Lots of open land
*Multiple groups said the same thing.
Individual Responses
a. Proximity to Metro; Diversity of housing opportunities for residents; Surplus of
lightly developed and publicly owned land (die is not cast); Low property taxes;
Unknown brand outside of NE suburbs (where's Hugo?); Established appealing
niche communities (equestrian, orchards, greenhouse, snowmobiles).
b. Functioning city council; Mahtomedi school district; Natural resources; Neighbors
c. WBL School District is great; Lots of parks for the kids; Lots of programs for kids and
families to get involved in; Country Living close to the city.
d. Safe; Solid Leadership, Open space/trails; peaceful.
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e. Diversity — of people, interests, landscape; Staff — cooperative nature, Futuristic view
f. Strong leadership at City Hall; City Council that works well together; A comm that
has good variety in house/age of; It's a rural comm — love driving in on Frenchman
Rd — corn fields on rt.
g. Smart reasonable leadership at City Hall — Dedicated City Employees; Clean,
comfortable, well -cared for environment; Friendly, welcoming neighbors; Great
Parks, beautiful ag environment, great trails.
h. Community support (Food Shelf, Tornado Clean up, etc.); Water abundance;
Location to major cities/venues; Open space — rural areas; Family Oriented (church,
school, parks).
i. Multiple types of housing — condo to farmland; Ability to stay living in Hugo until
you die if you want; Location to the downtown of St. Paul/Mpls areas; Governance
is pretty good — anyone is welcome at meetings; Lots of natural areas
j. Rural feel/small town feel; Great community members; Industry; Beautiful; Water;
Parks — Hanifl, Oak Park; Natural resources; Collaborative; Community; GND —
Community Feel.
k. Working together with our committees; Very updated city management team; Very
commuter school district; Strong influence on future development; Strong business
association.
I. The people — still feel connection, many have lived here over 40 years, their children
live here, etc.; still has a rural small town atmosphere; close to the cities; Low taxes
— good staff, hardworking, honest residents; We have a nice growing base of stores
& services.
m. Community members, very welcoming; small town/rural; Beautiful; School district;
Geoformically, Parks — Irish; Low taxes/Honest, good people; Good Governance;
Water conservation; Life cycle housing; Multiple housing types.
n. Competent/Strong Leadership; Geographical location to major city/open space;
Good variety in housing, small town feel; Community support (Food Shelf,
Tornado); Schools, parks, churches.
o. School Districts; Neighbors; Natural Resources; Functional Government; Staff;
Multiple types of housing; Life Cycle Housing; Location to Metro.
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2. What are Hugo's weaknesses? Where does Hugo fall short from your perspective? What
is missing that could better reflect the community vision?
Large Group Discussion
• Low availability of services
• City identity*
o Schools
o Recognition of the City— Where's Hugo
o Promotion of City
• Downtown*
o TH 61
• No entertainment/ destinations4Boring*
• No large group meeting locations / event space
• Transportation options are limited
o No metro mobility
o No busses
• Diversity
• Need Hotel
• Need more commercial and industrial
• Weak Roads
• Scattered development
• Limited freeway access off TH 61
*Multiple groups said the same thing.
Individual Responses
a. Scattered zoning based on actual early development of city; Limited freeway
and highway access outside of 61; Un -compelling downtown; Lack of
destination attractions; Some fairly basic amenities not near many Hugo
residents (pharmacy, restaurants, major retailer).
b. No nightlife; lack of restaurants
c. Silly but a Target or Walmart, 10 miles each way for these; Community center;
Still several dirt roads
d. School identity; Dining; Hwy 61 development; shopping
e. Well roundedness — restaurants; Cohesiveness — 4 school districts not drawn
together
f. Boring — friend said; Don't have restaurants/coffee shops on Hwy 51; Don't have
property developed.
g. The "downtown" draw
h. Local transportation within Hugo; more commercial development
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i. Gathering spots for large group meetings; Diversity of culture; Baseball area for
Hugo teams (or sport areas at all); Better variety of places to eat; Walkability
from old downtown is missing; Hwy 61 is a mess — not inviting.
j. Downtown (I think currently quaint — spruced up); Too Rural?; Diversity
k. Road planning and updating of the roads; more emphasis on Business moving
to Hugo; Improvements Hwy 61; Up-to-date fire protection
I. Work to help small businesses start, grow & thrive; More people to help fund
parks & development of fields, etc.;
m. Roads; Downtown/Encourage small business to thrive & grow; More retail;
Industrial Park/Technology/Office space; Diversity, not very diverse;
Improvements — Bus Service, more promotional; Availability of Services
n. Dining, retail, entertainment; Hotel facility (professional & wedding venues);
Destination; Commercial & light industrial development; Boring
o. Lacks Plays, Restaurants; Large group meeting locations; Diversity of Culture;
Hwy 61; Transportation
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3. What are the greatest opportunities in the community? What things do we do well
already, but could do better? What areas do we fall short in that we could be better at?
Where are the greatest opportunities for the community?
Large Group Discussion
• Water conservation
• Trail connections
• Redevelopment
• Transportation connections
• Developing an identity for the fractured school districts, growing schools*
• Economic Development
• Community gathering spaces*
• Embrace proximity to Twin Cities
• Connect with nearby communities to take advantage mutual amenities such as
equestrian & snowmobile trails
• Connect urban and rural residents
• Availability of land
• Weaknesses are opportunities
o Hwy 61 development
o Schools
o Services
• Take advantage of business association
• Diversity of housing types
• Changing work styles may allow more people to work from home / remotely.
Opportunity to develop as a tech center
• Create brand for Hugo
• Make Hugo a destination
*Multiple groups said the same thing.
Individual Responses
a. Indirectly Create an image/brand (using those words loosely) for Hugo from the
relatively blank slate it has to make it a destination for certain businesses or
residents; (Compare one's image, good or bad, of Lake Elmo, WB, North Oaks and
the lack thereof for Hugo); Embrace geographic proximity to the Twin Cities and
add amenities that make Hugo a destination (e.g. Free to build Tesla charging
station off Victor Hugo since there are none between Minneapolis and Hinckley);
Further streamline city administration and zoning to minimize property taxes for
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residents (eg., Rural residential vs typical residential); Cater to our existing niche
groups already established in the city and nearby cities to make Hugo a hub for
these groups.
b. Good trails, could be better connected; Connect rural/urban neighborhoods
c. We have land which draws people here; We have great schools
d. Hwy 61 "Downtown"
e. Planning; Parks/Activities
f. Bring in business that the City wants
g. Building a downtown destination — restaurants, etc.; Linking trails (continue);
PARKS, multiuse (Irish Ave)
h. Continue our water conservation efforts; expand into energy and recycling
i. Community events could be increased; We could probably use a middle school; We
could do better utilizing partnerships among businesses (or older population &
younger population); Diversity
j. Amount of land available for development; Lions Park/Irish Park; Housing;
Hugo/tour de Hugo Event
k. Family; Great Activities throughout the year; Parks & Land use
I. We have a well-educated, connected community, hardworking
m. Hard working; Above average income; New elementary school; Amount of land;
Hugo Business Association; Affordable Housing; More promotional — draw people
here
n. Water conservation, energy & recycling; More trail connections; Transportation
corridor opportunities; Redevelopment
o. Economic development, Community "Gathering" space; Several school districts but
no community link; Connect rural and urban neighborhoods; School Growth
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4. What things stand in the way of achieving the opportunities or maintaining our
strengths? What threatens the community or city from achieving their goals?
Large Group Discussion
• Lack of Funding*
• Trunk Hwy 61 Widening
• No LGA Funding
• Fear of change
• Transportation Routes
• Keep transparency
• The "squeeze"
o Hugo is in the middle of developed communities
o Other community actions reflect on perceptions of the community
• Rely on other communities
• Availability of natural resources
• May not be able to control the market to meet Met Council's requirement for
affordable housing.
*Multiple groups said the same thing.
Individual Responses
a. All things to all people approach leaves Hugo only somewhat compelling a number
of residents and potential residents (e.g. not rural nor suburban, some heavy
industrial with some million dollar homes, etc.); Significant growth chokes up
highway 61 making traffic and issue for residents and businesses; Hugo gets a
associates with some undesirable traits and development slows in approved areas;
Zoning does not reflect modern needs of business (e.g. Too light industrial and too
much retail, or vice versa); No flagship developments occur to spur reactionary
further developments.
b. Lack of resources to develop parks and trails
c. Lack of funds to keep up with road maintenance and future expansion; No real
shopping areas to keep residents here, we have to leave to get everything we need.
d. No comments written.
e. Squeeze — 35F FL WBL; Speed & Position
f. Cost; Lack of community involvement
g. $-> opportunities; Fear of change
h. Need to emphasize openness and transparency
i. People to organize the opportunity
j. Resources/Money; Hwy 61
k. No comments written
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I. Development of downtown
m. No comments written
n. Freeway interchanges out; $$; Emphasize transparency & openness; fear of change
o. No comments written.
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