HomeMy WebLinkAboutEDA PACKET 08.20.19AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
TUESDAY, AUGUST 20, 2019
6:00 PM
6:00 pm 1. Call to Order
6:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt)
6:02 pm 3. Approval of Minutes
• EDA Meeting of June 18, 2019
6:03 pm 4. Concept Plans on City Owned Property
• Tony Harmening
• Denny Trooien
7:00 pm 5. Update on Downtown Redevelopment
7:15 pm 6. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, AUGUST 20, 2019
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the June 18, 2019 EDA meeting as presented.
4. CONCEPT PLANS ON CITY OWNED PROPERTY
The 4.3 acres of City -owned property along Forest Boulevard that fronts Egg Lake has been marketed to
be eligible for $1 to users that can provide a full service restaurant or some form of destination use.
Development criteria for the property includes a quality site design and architecture that exceeds the
requirements of the Downtown Design Guidelines and construction of public amenities. The goal of the
site is to redevelop Downtown Hugo to a destination location.
There are two concept plans that will be presented to the EDA. Tony Harmening is presenting a family -
style steakhouse restaurant and bar on the City -owned property. The 4,500 square foot restaurant features
a large outdoor deck overlooking Egg Lake and is designed to accommodate a future event center
expansion. The site plan also shows multiple phases incorporating retail opportunities. Harmening has
experience owning and operating his own catering business. Denny Trooien is presenting a Downtown
Hugo concept plan that highlights a mix of retail, commercial, and restaurant users. The site plan
emphasizes walkability and shows a boardwalk along Egg Lake, creating a destination downtown area.
Trooien has a background in law and is currently the CEO of DENNIS Properties, LLC.
5. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will provide an update on downtown redevelopment at the meeting.
MINUTES FOR THE EDA MEETING OF JUNE 18, 2019
Weidt called the meeting to order at 5:00 pm.
PRESENT: Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt.
ABSENT: Gallivan, Wilson.
STAFF: Bryan Bear, City Administrator
Rachel Juba, Community Development Director
Emily Weber, Community Development Assistant
APPROVAL OF MINUTES FOR THE EDA MEETING OF MARCH 19, 2019
Klein made a motion, Puleo seconded, to approve minutes for the EDA meeting of March 19, 2019.
All Ayes. Motion carried.
UPDATE ON ECONOMIC DEVELOPMENT WORK PLAN
Juba provided an update on the EDA's progress towards the goals outlined in the Economic Development
Work Plan. The EDA discussed the infrastructure and concept plan for 165th Street and Highway 61 as
well as downtown development and redevelopment opportunities. The City has made progress with
providing information online and the EDA discussed additional lengths the City can go to with the City
website. The EDA expressed interest in creating a new work plan for 2019 and will begin to brainstorm
goals for next year.
UPDATE ON TECHNOLOGY CORRIDOR
Juba provided an update on the MN Technology Corridor and the partnership between Anoka and
Washington County to attract large data centers or data users to the area. Juba shared that the website
will launch in the end of July and will be a landing page for businesses in the area. The website will list
sites in Hugo and the surrounding communities that are suitable for this specific use. The EDA discussed
what is attracting people to Washington County and how the City can show the desirable qualities Hugo
has to offer.
UPDATE ON DOWNTOWN REDEVELOPMENT
Juba provided the EDA with an update on downtown redevelopment. The City continues to meet with
people on the City owned property off of Highway 61 and is expecting to see a concept plan.
Additionally, O'Reilly's Auto Parts is under construction and a site plan for Apple Academy was recently
approved. The EDA discussed updating City ordinances and monument signs. They also expressed their
excitement of seeing more interest along Highway 61.
ADJOURNMENT
Commissioner Puleo made a motion, seconded by Commissioner Houle, to adjourn at 6:01 pm.
All ayes. Motion carried.
Respectfully submitted.
Emily Weber, Community Development Assistant
REDEVELOPMENT OPPORTUNITY
LAND SALE OPTIONS
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PRIME DEVELOPMENT LAND
DOWNTOWN HUGO
Forest Boulevard (TH 61) on 4.3 acres
Hugo, Minnesota 55038
PROPERTY • zoning: Central Business (C-1), allowing for
multiple commercial uses.
HIGHLIGHTS
• A market study has been recently completed
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for the downtown area.
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• Located within a Tax Increment Financing (TIF)
District.
• Approved redevelopment plans for a restaurant
use on a portion of the property.
• Price of property can be reduced when
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development criteria is met.
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• The property is owned by the City of Hugo.
• A market study has been recently completed
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for the downtown area.
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• Located within a Tax Increment Financing (TIF)
District.
• Approved redevelopment plans for a restaurant
use on a portion of the property.
• Price of property can be reduced when
development criteria is met.
• The property is owned by the City of Hugo.
• Downtown Plan and Design Guidelines apply
to development in this area.
The property is located in the heart of the City of Hugo and offers a wide array of opportunities for any buyer.
With over 650 feet of lakeshore frontage, this beautiful property is great for a mixed used development with a
restaurant/entertainment use, as well as, commercial, boutique retail, office, and housing. This property could
become the centerpiece for the downtown business district in the City of Hugo. A survey of the property is
available upon request.
CITY OF
The property is within minutes of the newly redesigned freeway interchange at 135E (ADTV 86,900) and
BLUIGOCounty Rd 14/8 (ADTV 13,900). Highway 61 (ADTV 14,100) has been recently resurfaced and a turn lane has
- EST. 1906 been constructed to access the property. The property is generally flat with very high visibility located on
Highway 61.
DEVELOPMENT The development criteria are a list of highly desired elements for the redevelopment of
CRITERIA the property. A development project that meets the following criteria may be eligible to
purchase the property for $1.00:
• A full service restaurant or some form of event center or family entertainment venue,
situated so that the customers and public will benefit from views over the lake.
Secondary retail, service and housing uses may be considered.
• A development and phasing plan is required with all development complete within 3
years.
• Quality architecture, building materials, and site design, exceeding requirements of
the Downtown Design Guidelines.
• Construction of public amenities, including pedestrian connections, a gathering place
near Egg Lake, and public parking.
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CONTACT CITY OF HUGO
us 14669 Fitzgerald Ave N
Hugo, MN 55038
RACHELJUBA
651-762-6304
rjuba@ci.hugo.mn.us
• The City does not require parkland
dedication for commercial and
industrial development.
• The City does not charge sewer
trunk charges for redevelopment
sites in downtown.
• Hugo is a one stop shop for com-
mercial and industrial development
as it is the Local Governing Unit for
Rice Creek Watershed District.
• Hugo completed a Business
Retention and Expansion (BR&E)
Program in 2010 and was awarded
an International Award of
Excellence for the program in 2012.
CITY OF
FWGO
EST. 1906
www dhugonn.us
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;
• A full service restaurant or some form of event center or family entertainment venue,
situated so that the customers and public will benefit from views over the lake.
Secondary retail, service and housing uses may be considered.
• A development and phasing plan is required with all development complete within 3
years.
• Quality architecture, building materials, and site design, exceeding requirements of
the Downtown Design Guidelines.
• Construction of public amenities, including pedestrian connections, a gathering place
near Egg Lake, and public parking.
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CONTACT CITY OF HUGO
us 14669 Fitzgerald Ave N
Hugo, MN 55038
RACHELJUBA
651-762-6304
rjuba@ci.hugo.mn.us
• The City does not require parkland
dedication for commercial and
industrial development.
• The City does not charge sewer
trunk charges for redevelopment
sites in downtown.
• Hugo is a one stop shop for com-
mercial and industrial development
as it is the Local Governing Unit for
Rice Creek Watershed District.
• Hugo completed a Business
Retention and Expansion (BR&E)
Program in 2010 and was awarded
an International Award of
Excellence for the program in 2012.
CITY OF
FWGO
EST. 1906
www dhugonn.us
Tony Harmening, an experienced caterer is proposing to develop a Cattle House
restaurant with a future phase event center on the city owned property on Hwy 61 and
Egg Lake. The 4,500 SF restaurant will be a family style steakhouse and bar. The
building is designed to accommodate a future 200 capacity event center that would share
the kitchen facility. A large outdoor deck is over looking a pond feature that is an
extension of the lake and could host paddle boating. The architecture is designed with a
large sloped roof that opens up to the lake. Large overhead glass doors would open up to
the lake. The massing takes its cues from the grain silos across the highway. High
quality materials such as stone, timbers, glass and barnwood siding combine for a rustic/
industrial vibe. Decorative light fixtures and extensive landscaping reflect a quality
development. The restaurant would be surrounded by recreational activities such as
outdoor volleyball, horseshoes and corn hole toss in the summer and broomball,
snowmobiling and firepit in the winter. On off-peak hours a farmers market with local
vendors could occur in the parking lots that could reinforce the organic and local
branding of the restaurant. These activities would be a benefit for both the restaurant and
the community. The site plan is master planned for further future development. The plan
takes advantage of views and access to the lake as well as maintaining views of the lake
from Hwy 61. Several structures are placed along Hwy 61 for an urban character, while
other buildings are situated on the lake amenity. Parking is shared throughout the site
and offers easy access for all uses. A trail system throughout the site connects the
community to these site amenities. Future access is designed into the plan as the east and
west sites become available for development. Ironically, the architect designing the
restaurant is named Kathy Anderson, which is the same name as the restaurant owner that
was previously on this site.
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Architectural Consortium, L.L.C. 2019
2214 Fifth Street, Unit 3
White Bear Lake, MN 55110
Voice 651 247 7007
dennis@dennisproperties.com
www.dennispWerties.com
August 12, 2019
Hugo Economic Development Authority ("EDA")
c/o Rachel Juba
Community Development Director
Hugo City Hall
14669 Fitzgerald Avenue North
Hugo, MN 55038
Re: CREATION AND REDEVELOPMENT OF DOWNTOWN HUGO
Dear EDA Members:
DENNIS Properties, LLC and Collage Architects are pleased to present a proposal for the
creation and redevelopment of DOWNTOWN HUGO on Egg Lake. Attached is an Index of
Tabs that are included in this booklet, followed by the items noted in the Tabs.
We look forward to presenting this proposal to you at your meeting on August 20, 2019.
Sincerely,
Denny Trooien
CEO of DENNIS Properties, LLC
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HUGO PLAN
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TOTAL SO FT:
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DOWNTOWN BUILDINGS
2 STORY
60,000 SO FT
9 ST FLOOR - RETAIL
2ND FLOOR- COMMERCIAL/
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Hugo Storage Units Contribute to 13% Company Growth in Minnesota
The first Public Storage opened in Hugo, Minnesota, today at Public Storage 13465 Fenway
Blvd. Circle North, Hugo, MN 55038. (Photo: Business Wire)
July 24, 2019 01:46 PM Eastem Daylight Time
GLENDALE, Calif.—(BUSINESS wiRE)—Public Storage's (NYSE:PSA) first units in the popular suburb of Hugo,
Minnesota, opened here today, contributing to a company growth spurt in the state of 13% within the last year.
The newly purchased location is the company's first in Hugo, a commuter town northeast of Minneapolis. It is one of seven
new storage facilities the company has opened in Minnesota since August 2018 to serve an increasing need. Public
Storage now operates 55 properties statewide.
'The population is growing over 1% per year, and there is limited competition," said Erik Svensson, a Public Storage vice
president.
Public Storage 13465 Fenwav Blvd. Circle North, Hugo, MN 55038 has more than 400 storage units on site. Many are
outdoors, for convenient drive -up loading and unloading. There are also climate controlled storage options.
The location is visible from Forest Boulevard, aka Highway 61, and is about 20 miles northeast of St. Paul. It has appealing
grey stone accents and, like all Public Storage properties, a store selling boxes, tape, mattress covers and other supplies.
This Public Storage acquisition comes at a time of economic growth in the Twin Cities area, with a 6% increase in home
values over the last year and a median home price per square foot that is still 15% less than in St. Paul, according to data
from Zillow.
"Growth in Minnesota is exciting to see," said Charles Gardiner, an area manager. "This allows us to get into the Hugo and
Lake Forest area. It creates more opportunities. It's part of how the metro area is growing outward."
Hugo residents are known for having a strong sense of community, with parks and trails, as well as a nearby lakes for fun.
"Hugo is a classic Minnesota town—hardworking people who enjoy lake life and community events," said Erin Berrisford, an
area manager for Public Storage.
For more information, visit the Public Storage Blog. Follow Public Storage on Facebook and Twitter.
Company Information
We help customers in their time of need, whether moving, downsizing or storing for business. Public Storage was founded
in 1972 with a single Southern California self -storage building. We've grown a bit since then, to more than 2,444 locations
around the country, making us the largest in the business today and a member of the S&P 500. We offer self -storage
options of all shapes and sizes and the same personal attention from on-site managers that we've been giving from day
one. For stockholders, we are a real estate investment trust, meaning we distribute a large portion of revenue to public
investors in the form of dividends. Learn more about Public Storage at haps://www.publicstorage.com.
Contacts
Ryan Burke
(818) 244-8080, Ext. 1141
Chris Eng
Subject: FW: Open to Business - 2017-2019 Results
In the first two years, we have had 247 client engagements broken out by year:
2017 (half year): 49
2018: 125
2019: 73 - YTD 7/31/19
Total Loans Approved:
2017: 2 loans - $175,000 Open to Business - Leveraged $1,790,000 total investment
2018: 8 loans - $392,500 Open to Business - Leveraged $1,762,350 total investment
2019 YTD 7/31/19: 9 loans - $457,000 Open to Business - Leveraged $2,241,041 total
investment
Total: 19 loans, $1,024,500 Open to Business - Leveraged $4,003,391 total investment
Total investment = 02B, bank, credit union, borrower equity, other financing in the project
Client City (Business/ Residence
Stillwater (61/58)
Cottage Grove (34/35)
Woodbury
(31/31)
Forest Lake
(29/31)
Oakdale
(17/16)
Hugo
(15/14)
Scandia
(13/13)
Lake Elmo
(9/8)
Mahtomedi
(6/7)
Willernie
(5/4)
Marine on St. Croix (5/6)
Bayport
(4/1)
St. Paul Park
(3/2)
Hastings
(2/3)
Lakeland
(2/2)
Oak Park Heights (2/2)
White Bear Lake
(2/1)
Newport
(1/2)
Lake St. Croix
(1/0)
Afton
(1/0)
Tyler Hilsabeck
Open to Business - Business Advisor
Washington County
7645 Currell Blvd.
Woodbury, MN 55125
612-789-8838 (work)
312-402-6954 (cell)
thilsabeck@mc dmn.org