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Home My WebLink AboutEDA Packet 01.19.21CI I Y OF�— Agenda EST. 1906 ECONOMIC DEVELOPMENT AUTHORITY (EDA) Tuesday, January 19, 2021 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/j/81132842859 Or call +1 312 626 6799 Meeting ID: 8113284 2859 5:30 pm 1. Call to Order 5:31 pm 2. Roll Call (Denaway, Gallivan, Klein, Petty, Puleo, Weidt) 5:32 pm 3. Approval of Minutes EDA Meeting of December 15, 2020 5:33 pm 4. Approve 2021 Goals 5:40 pm 5. Review 2020 Annual Report 5:50 pm 6. Update on Downtown Redevelopment 5:55 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, January 19, 2021 3. Approval of Minutes Staff recommends approval of the minutes from the December 15, 2020 EDA Meeting as presented. 4. Approve 2021 Goals Attached in the packet are the drafted goals for 2021. At their previous meeting, the EDA discussed and brainstormed the goals they would like to achieve in 2021 as a Commission. Staff is recommending the EDA approve the goals as presented. 5. Review 2020 Annual Report Attached in the packet is the 2020 EDA Annual Report that highlights development projects throughout the past year. 6. Update on Downtown Redevelopment Staff will provide an update on downtown development. 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 DECEMBER 15. 2020 Meeting held remotely pursuant Minn. Stat. Sec. 1313.021 Chair Weidt called the meeting to order at 5:31 pm. PRESENT: Denaway, Gallivan, Houle, Klein, Petty, and Weidt. ABSENT: Puleo. Note: Due to technological difficulties, Gallivan was able to view and hear the meeting, but was not able to participate. STAFF: Bryan Bear, City Administrator Rachel Juba, Community Development Director Emily Weber, Community Development Assistant APPROVAL OF MINUTES FOR THE EDA MEETING OF NOVEMBER 17. 2020 Commissioner Klein made a motion, seconded by Commissioner Denaway, to approve minutes the November 17, 2020 EDA meeting minutes. Ayes: Denaway, Klein, Petty, and Weidt. Nay: None. Motion Carried. Houle did not vote because he was late to the meeting. SET 2021 GOALS Staff provided a background on economic activity that occurred in the City during 2020. This included a run through of commercial and industrial site plans that were reviewed by the City. Staff also provided an overview of support provided to local businesses by the City during the COVID-19 pandemic. The City waived liquor license fees for local restaurants and granted approximately $173,000 to 19 different local businesses as part of the Hugo CARES Business Grant Program. Staff also provided an overview of the 2020 EDA goals and the EDA reflected on goals that were met. Among other things, the goals from 2020 included items such as encouraging downtown redevelopment, maintaining a business friendly environment, and continue to partner with local businesses and the Hugo Business Association. Staff also provided ideas for 2021 goals for the EDA to discuss. This included retaining existing businesses, low development costs for new and expanding businesses, and investment in infrastructure that promotes economic development. The EDA discussed business retention and providing additional resources to businesses that may be struggling due to the COVID-19 pandemic. Commissioners talked about utilizing the Open to Business resources and focusing on the downtown area. Staff will incorporate these comments and provide an update to the EDA at their next meeting. UPDATE ON DOWNTOWN REDEVELOPMENT Community Development Director, Rachel Juba, provided an update on development in the City. ADJOURNMENT Commissioner Klein made a motion, seconded by Commissioner Denaway, to adjourn at 6:19 pm. Ayes: Denaway, Houle, Klein, Petty, and Weidt. Nay: None. Motion Carried. Respectfully submitted. Emily Weber, Community Development Assistant 2021 Goals Economic Development Authority (EDA) -Assist and encourage redevelopment of properties in downtown • Continue low development costs -Continue business visits and the BR&E Program • Continue assisting businesses to overcome the Covid-ig pandemic • Provide resource lists for business • Encourage the extension of high speed internet through -out the City • Promote Washington County CDA grant and Open to Business Program • Continue memberships of economic development associations • Install the City north entrance monument sign • Encourage businesses to identify themselves as being located in Hugo -Attend Technology Corridor U35E) meetings • Continue to encourage and monitor infrastructure improvements to promote economic development • Continue partnering with local businesses and the HBA • Continue to partner with Washington County on its Economic Development Strategic Plan • Meet with property owners with property for sale to see if there is any way the City can help Approved by the EDA at its Tuesday, 5 2021, meeting DECEMBER 2020 1 HUGO CITY HALL, 14669 FITZGERALD AVE N, HUGO, MN 55038 EDA COMMISSIONERS Tom Weidt, President Phil Klein, Vice President Tom Denaway Mike Gallivan EDA ANNUAL REPORT This annual report is designed to showcase the economic development activity during 2020 and to showcase the commercial and industrial businesses that have seen success throughout the year. The goal of the Hugo Economic Development Authority (EDA) is to create a thriving community with diverse jobs and tax base by emphasizing business retention, business expansion, and business attraction in the community. Hugo's business community continues to expand due to strong residential growth and an attractive business environment. The City of Hugo and the Joe Houle EDA welcomes all of the new and growing Cindy Petty businesses to Hugo and are excited about the new Frank Puleo jobs and services they provide to the community. 2020 EDA ANNUAL REPORT I PAGE 2 2020 AT A GLANCE: Commercial and Industrial Construction Permits PROJECTS SQUARE FOOTAGE VALUATION Grundhofer's Expansion 2,5005F $375,000.00 Victor Place 14,161 SF $1,850,000.00 WBL Transportation Facility 15,275 SF $5,170,000.00 Schwieters 27,180 SF $2,100.000.00 Heartland Credit Union 3,028 5F $2,000,000.00 TOTAL 62,144 SF $11,495,000.00 S _ � �_ GRUN�N OFERS 7. WEST ELEVATION r� 5 s� rvcarn flEVFiiaN 4' 3 ,_ ISD #624 Transportation Facility ISD #624 started construction of their transportation facility located on Fenway Boulevard and is within the Bald Eagle Industrial Park. The White Bear Lake Area School District is using the site for a 10,600 square foot office and maintenance building as well as parking and exterior storage for buses. The District gained approval for a conditional use permit to allow the storage of approximately 75 buses and vans to be used for specific transportation needs. ISD #624 is also working on a site plan for a new elementary school to be located in Hugo. Heartland Credit Union Construction of the Heartland Credit Union was completed in 2020 after gaining approval in 2019. The 2,500 square foot �+retail bank is the last building to be built in I!W"Tthe Victor Gardens North Village , } ;--development. The building is located on the -- - corner of Victor Hugo Boulevard North and Frenchman Road. (Left) Eagles Landing In December 2020, the Hugo Planning Commission recommended approval of a site plan for 3 one-story office/warehouse buildings totaling 38,800 square feet. The site is located on the corner of 130th Street North and Fenway Boulevard North. The buildings will have a total of 14 office/warehouse units, each can accommodate a mezzanine and some will have an outdoor balcony. The applicant stated that the users will be low intensity users and possibly sold or leased to users that may want to store and work on collectable vehicles. The unique project received a variance from the industrial standards and will be constructed with architectural metal panels. Construction is expected in 2021. (Image below) 2020 EDA ANNUAL REPORT I PAGE 4 n July 7, 2020, the City of Hugo received $1 million from ie Minnesota Department of Revenue in response to the OVID-19 pandemic. This money was provided to the City trough the Coronavirus Aid, Relief, and Economic Security ct (CARES Act) as a federal response to the recent -onomic decline. The EDA met in August to discuss the sources already available to local businesses and if there as a need for an additional grant program. The discussion nded in a motion that directed staff to create a grant rogram for local, private or nonprofit businesses that enerate under $3.5 million in annual revenue, which allowed them to apply for individual grants for up to $10,000. In response, staff created a grant program that allocated $200,000 from the City's CARES budget to local businesses, should they meet the grant requirements. The application period was open from September 9, 2020 to October 1, 2020. Staff received 22 total applications and reviewed the submitted materials in regard to the grant application criteria and requirements. At the October 15, 2020 meeting, the City Council expanded the criteria to allow two the applicants that did not meet the annual revenue requirements to be included in the recipients. In the end, 19 Hugo businesses received grants from the City and a total of $171,635.33 was awarded. 2020 EDA ANNUAL REPORT I PAGE 5 PURCHASE AGREEMENT: CITY OWNED PROPERTY ON EGG LAKE The City of Hugo has an ongoing plan to market the City owned property along Egg Lake for $1.00. In order to be eligible, the development must meet a list of highly desirable development criteria. The EDA decided to market the property in a specific way to attract the type of development they would like to see on the property. In 2019, Tony and Michele Harmening presented a concept plan for the property that included a full service restaurant with future phasing to include an event center. The Harmening's entered into a purchase agreement with the City and gained site plan approval in April 2020 for their plan. However, due to the unfortunate state of uncertainties in the restaurant business as a result of the COVID-19 pandemic, the Harmening's had to terminate the purchase agreement. In October 2020, Denny Trooien presented a downtown Hugo concept plan to the EDA in hopes to enter into a purchase agreement with the City. The concept plan proposes a mixed use development that would capitalize on the lake shore scenery of the property. The plan includes spaces for restaurant and retail users and promotes walkability. At their November 17, 2020 meeting, the EDA motioned to direct staff to continue working on terms of the purchase agreement with Mr. Trooien and to have staff bring the purchase agreement to the City Council. In December 2020, the City Council made a motion to approve the draft purchase agreement subject to the City Attorney and City Financial Advisers review and approval. (Images below and on pg. 4) DOWNTOWN HUGO PLAN 07.02.209 2 AERIAL SITE PLAN LAKESIDE BUILDINGS 1 ANG 2 STORY oOoo EDP -HMOs Collage I a r c h l t a cue