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HomeMy WebLinkAboutEDA PACKET 09.15.20Agenda ECONOMIC DEVELOPMENT AUTHORITY (EDA) Tuesday, September 15, 2020 REMOTE MEETING 5:30 PM Meeting to be held remotely pursuant Minn. Stat. Sec. 13D.021 Anyone wishing to attend the meeting can join virtually by using this link: https://us02web.zoom.us/l/82655733147 Or call +1 312 626 6799 Meeting ID: 826 5573 3147 CI I Y OF�— EST. 1906 5:30 pm 1. Call to Order 5:31 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt) 5:32 pm 3. Approval of Minutes EDA Meeting of August 18, 2020 5:33 pm 4. Concept Plan on City Owned Property • Denny Trooien, Dennis Properties 6:00 pm 5. Update on CARES Act Budget — Business Grants 6:15 pm 6. Update on Downtown Redevelopment 6:30 pm 7. Adjournment If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or riuba@ci.hugo.mn.us, thank you. Background memo for the EDA Meeting of Tuesday, September 15, 2020 3. Approval of Minutes Staff recommends approval of the minutes from the August 18, 2020 EDA Meeting as presented. 4. Concept Plan for 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. 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. S. CARES Grant Background Staff will provide an update on the approved CARES Act budget and the business grant that is now available to business in Hugo and that serve Hugo. You can also find more using this link below: Hugo Business Grants 6. Update on Downtown Redevelopment Staff will provide an update on downtown redevelopment. If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or rjuba@ci.hugo.mn.us, thank you. MINUTES FOR THE EDA MEETING OF AUGUST 18, 2020 Meeting held remotely pursuant Minn. Stat. Sec. 1313.021 Chair Weidt called the meeting to order at 5:37 pm. PRESENT: Gallivan, Klein, Petty, Puleo, and 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 JUNE 16. 2020 Commissioner Klein made a motion, Commissioner Klein seconded, to approve minutes for the EDA meeting of June 16, 2020. Ayes: Gallivan, Klein, Petty, Puleo, and Weidt. Nay: None. Motion Carried. CARES ACT BACKGROUND Staff provided the EDA with an update on the CARES Act funding available to the City. The background included financial assistance programs that have been available to local businesses and what type of program the EDA could offer to local businesses. The EDA discussed what type of businesses in Hugo could apply to the proposed grant program and what application materials would need to be submitted. The EDA generally agreed that there were already resources available, however, it could reach more businesses if a local grant program was created. Staff stated that the proposed grant program would need to have funds spent by November 15, 2020. Weidt made a motion to direct staff to create a grant program for local, private or nonprofit businesses that generate under $3.5 million in annual revenue, which allows them to apply for individual grants for up to $10,000. Seconded by Petty. Ayes: Gallivan, Klein, Petty, Puleo, and Weidt. Nay: None. Motion Carried. UPDATE ON DOWNTOWN REDEVELOPMENT Community Development Director, Rachel Juba, provided an update on development in the City. The Hugo Gardens Apartments have applied for their final plat and Schwieters was approved for their 4tn addition on their campus development in the Bald Eagle Industrial Park. The City has terminated the Option Agreement with Tony Harmening that was for the City -owned property along Egg Lake. Harmening can come back to the EDA to request another Option Agreement at a later date. ADJOURNMENT Commissioner Klein made a motion, seconded by Commissioner Gallivan, to adjourn at 6:28 pm. Ayes: Gallivan, Klein, Petty, Puleo, and Weidt. Nay: None. Motion Carried. Respectfully submitted. Emily Weber, Community Development Assistant :E o�oo Oproperties 2214 Fifth Street, Unit 3 White Bear Lake, MN 55110 Voice 651 247 7007 dennis@dennisproperties.com www.dennisproperties.com September 8, 2020 Via. FinaiI Rachel Juba Community Development Director City of Hugo 14669 Fitzgerald Ave. N. Hugo, MN 55038 Re: Downtown Hugo Dear Ms. Juba: This letter is sent in connection with my presentation of a Downtown Hugo plan at the September 15, 2020 EDA meeting. I would again like to present the plans which I presented to the EDA in August of 2019. This includes the PowerPoint Presentation which Hugo staff has from the 2019 presentation. Now, in 2020, we would like to make progress on the creation of a purchase agreement and development agreement that contemplates the commencement of construction of Phase 1 in the summer of 2021. Our goal is to have the purchase agreement and development agreement executed by October 31, 2020. We envision that those agreements will include the following concepts: Earnest Money: $20,000. This is to be compared to the $500 which was deposited by Christopher Cosgrove and the $1.00 which was deposited by Tony Harmening. 2. Phase 1: the following components of the plan would be constructed as the Phase 1 improvements: 0 restaurant of at least 4500 square feet • The construction of "Main Street", which would be a public street with public utilities and sidewalks. Main Street should include decorative lighting and opportunities for banners such as for Veterans Day, Independence Day, and the like. Main Street would be funded in part by the City of Hugo, recognizing public benefit. Dennis Properties would also fund part of Main Street costs, recognizing the private benefit. This private portion would be paid via special assessments, payable over time. • Parking on the south side of Main Street and south side of the site, consisting of at least 40 parking stalls. 3. Purchase price for all of the land: $1, assuming the approved Phase 1 development is completed. 4. Tax Increment would be available to Dennis Properties for its share of Main Street and other costs. 5. Contingency Period: five (5) months from date of the Purchase Agreement and Development Agreement. The Earnest Money is refundable during this five (5) month period. Dennis Properties can extend the contingency period for another five (5) months but only if $10,000 of the $20,000 Earnest Money is made nonrefundable. 6. We envision up to five phases, the last of which would occur prior to December 31, 2025. The current plans contemplate 89,000 feet of total building space, with 200 parking stalls. This is a ratio of 2.2 stalls per 1,000 square feet of space. We know that the plans do not provide for adequate parking stalls at this time. But that is because our plans were specifically created with the following mission: create a Downtown Hugo, with the look, feel, and function of a downtown. Adequate parking is important and must be satisfied, but we did not want the "tail" (parking) to wag the dog (the creation of a Downtown Hugo). We look forward to working with staff to provide adequate parking, which might involve using additional land owned by the EDA in the vicinity, as well as other possible solutions. In addition to this letter, I am sending an image of the Phase 1 area, as well as a reiteration of the Downtown Hugo Plans which we presented in 2019. 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N . n� •. l • .j'.i MM t... _.y _ f.4 A y� M } 4t M II �-7, ° 91 AP" pp� r u �� I � li hu. � V i r N i lz lrir �\� ROMEMN lira a i Ili 4 _— #5 CARES Business Grant Application 14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762-6300 • www.ci.hugo.mn.us Requested Grant Amount: Applicant: $ (max $10,000) Along with the application, please submit Address: the following materials: ❑ Completed W9 form City: State: Zip: ❑ 2019 Tax Statement Phone: ❑ Narrative on how applicant meets grant requirements Email: APPLICATION DEADLINE: OCTOBER 1, 2020 1. Have you been previously reimbursed by other sources of funds (County, State, and/or Federal) in response to the COVID-19 pandemic? Yes: ❑ No: ❑ If yes, submit invoices of anything previously reimbursed by other sources of funds. 2. Are you requesting reimbursement of expenses in response to CDC guidelines? Yes: ❑ No: ❑ If yes, submit invoices, itemized copies of what was purchased, and proof of payment of expense. 3. Are you requesting reimbursement of operating expenses as a result of adversity due to the public health emergency? Yes: ❑ No: ❑ If yes, provide proof of loss of revenue due to COVID-19 outbreak. Requested grant amount cannot exceed loss of revenue. My signature indicates that the information provided is true, I have read and understood the grant program guidelines, and that I comply with the City of Hugo grant program requirements. Should the City of Hugo require any additional documentation to verify that business guidelines are met, I will provide the necessary materials. I acknowledge that the materials I am submitting are accurate and true. Signature: Date: ELIGIBILE USES BUSINESS GUIDELINES • Cover operating expenses including payroll, • Must be in good standing with the City and County. rent/lease payments, mortgage payments, private • Demonstrate that the business was adversely affected by Executive utilities, or other critical business expenses as a Orders related to COVID-19 business restrictions. result of the public health emergency. • Private businesses are required to be located within the City of • Expenses in response to CDC guidelines. Hugo. Non-profit businesses must provide service within the City of • Expenses from March 1, 2020 to September 30, Hugo. 2020. • Expenses must have been incurred and paid for. • • May not exceed an annual revenue of $3.5 million. Demonstrate financial hardship as a result of the COVID-19 outbreak. NON-ELIGIBILE USES • Funds cannot be used to replace lost revenues. • Only one application per business and may apply for up to $10,000. • Funds may not be used to cover taxes. • Applications are on a first come, first served basis. • Funds may not include expenses that have been • May include businesses that have applied for/received any other previously reimbursed by other sources of funding COVID related federal funding. However, only eligible expenses (County, State, and/or Federal). that have not been reimbursed by other programs are considered eligible for the Hugo CARES Business Grant Program.