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Home My WebLink AboutEDA Packet 11.16.21Agenda ECONOMIC DEVELOPMENT AUTHORITY (EDA) Tuesday, November 16, 2021 Hugo City Hall 5:30 PM 5:30 pm 1. Call to Order 5:31 pm 2. Roll Call ropoK i CI I Y O� -4 +��fWQQ (Arcand, Chrun, Denaway, Gallivan, Klein, Puleo, Roberts, Weidt) 5:32 pm 3. Approval of Minutes EDA Meeting of October 19, 2021 5:35 pm 4. 140th Street Construction Request from John Schwieters 5:50 pm 5. Update on Downtown Redevelopment 6:00 pm 6. Update on Lions Park Redevelopment and Downtown Street Improvements 6:10 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, November 16, 2021 3. Approval of Minutes Staff recommends approval of the minutes from the October 19, 2021 EDA Meeting as presented. 4. 140th Street Construction Request from John Schwieters John Schwieters, owner of Victor Land Holdings, LLC, is requesting the City of Hugo cost share the design and construction of 1401h Street. Staff will provide a background on the request. 5. Update on Downtown Redevelopment Staff will provide the EDA with an update on Denny Trooien's Downtown Hugo proposal. 6. Update on Lions Park Redevelopment and Downtown Street Improvements Staff will provide an update on Lions Park Redevelopment and Downtown Street Improvements. If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or riuba@ci.hugo.mn.us, thank you. MINUTES FOR THE EDA MEETING OF OCTOBER 19. 2021 Acting Chair Klein called the meeting to order at 5:31 pm. PRESENT: Arcand, Chrun, Denaway, Klein, Roberts. ABSENT: Gallivan, Puleo, Weidt. STAFF: Bryan Bear, City Administrator Rachel Juba, Community Development Director Emily Weber, Community Development Assistant APPROVAL OF MINUTES FOR THE EDA MEETING OF AUGUST 17, 2021 Commissioner Roberts made a motion, seconded by Commissioner Denaway, to approve the August 17, 2021 EDA meeting minutes. Ayes: Arcand, Chrun, Denaway, Klein, Roberts. Nay: None. Motion carried. CENSUS DATA Staff provided an update on the 2020 Census data that was released. Staff stated that the data is important as the population counts are used for redrawing congressional and legislative district boundaries. Hugo saw an 18% increase in population since that last Census in 2010. The total population in Hugo is 15,766 people and has 5,939 households. Staff provided information on regional data in addition to Hugo data trends. The EDA commissioners had a discussion on population trends and how it affects planning for the City. UPDATE ON DOWNTOWN REDEVELOPMENT Staff provided an update on downtown redevelopment. They are expecting Denny Trooien to submit a site plan application in the upcoming weeks. UPDATE ON LIONS PARK REDEVELOPMENT AND DOWNTOWN STREET IMPROVEMENTS Staff provided an update on Lions Park redevelopment. The parking lot and park pavilion are currently under construction with pavement expected within the next few weeks. Mass grading of the site will also begin within the next few weeks. ADJOURNMENT Commissioner Chrun made a motion, seconded by Commissioner Denaway, to adjourn at 6:07 pm. Ayes: Arcand, Chrun, Denaway, Klein, Roberts. Nay: None. Motion Carried. Respectfully submitted. Emily Weber, Community Development Assistant Memorandum To: Hugo Economic Development Authority From: Rachel Juba, Community Development Director Date: November 10, 2021, for the EDA Meeting of November 16, 2021 Subject: 1401h Street Construction Request from John Schwieters, Owner of Victor Land Holdings, LLC. BACKGROUND/ANALYSIS: In 2013, the City Council adopted an assessment policy for developer -driven improvements. The policy outlines criteria to consider the requests of developers to design and construct roadways and associated improvements and assess the costs to the property. One of the three criteria is that the requests are limited to areas with commercial and industrial development. Victor Land Holdings, LLC has submitted land use applications for construction the seventh building in the Schwieters campus on Fenway Boulevard in the Bald Eagle Industrial Park. The building is proposed to be built along 1401h Street. 140th Street. In reviewing the applications with the engineering staff and fire department, staff recommends that 1401h Street be constructed with their project because of the location, the manufacturing use of the building, and circulation problems with in the site. The developer asked staff about cost share for the construction of the road. The City of Hugo does not have a policy for cost sharing on projects and the construction of 140th Street is not in the City's 5-year Street Improvement Capital Improvements Plan (CIP). Staff has received a letter from the developer requesting that the City cost share on the construction of 140th Street (to their western property line) 50% each and that the developers cost be assessed to the property over a five year period (generally per the assessment policy). The request also include the City adding the construction of 140th Street in the CIP for 2022. The request generally complies with the assessment policy for development -driven improvements. The City owns a majority of the property along of 1401h Street, where the extension of the road would occur. There is a benefit to the City with the construction of the road. There is a sanitary sewer lift station north of 1401h Street that is currently accessed from a gravel driveway. An improved paved 140th Street would provide the City better access to the lift station for monitoring and maintenance. Also, Clearwater Creek Preserve Park is west of 1401h Street. STAFF RECOMMENDATION: Staff recommends the cost sharing of the design and construction of 140th Street because the City owned the property along 140th Street and other benefits to the City. The request generally complies with the assessment policy for development -driven improvements. Staff recommends the EDA review and discuss the request from Victor Land Holdings, LLC, and make a recommendation from to the City Council. ATTACHMENTS: 1. Location Map 2. Site Plan for New Building 3. Letter from John Schwieters 4. Assessment Policy Exhibit A City Owned Property r " 14 Est -Street North L i _ O i 7 _ � N Q A (6 3 City Owned Property LL Proposed 140th Extensi Clearwater Creek Preserve F Park ,. New Proposed Building 0 2 3 4 5 6 w QD 00 00 �C-D 27 ADD'L PARKING Z SPACES �I NEW 8'-0" HIGH CHAIN -LINK FENCE TO MATCH EXISTING STING FILT17 RATION 1 I New ■ p�p0p o s BASIN SCHWIET S Ildth W 30'-0" CO � I I e e e e S89016'02"E EXISTING 8'-0" HIGH CHAIN -LINK 70.47 FENCE TO REMAIN - I I SIDE YARD SETBACK (EQUAL TO BUILDING HEIGHT) DRAINAGE & UTILITY EASEMENT EXISTING CHAIN -LINK FENCE TO I REMAIN � p Q � J I e c� z x EXISTING 40 YARD WOOD SCRAP CONTAINERS TO REMAIN N z v O a .1/ .� uJ Cn I w z w � 3:X cD w CO X Iw o — — — — ARCHITECTURAL SITE PLAN 1 if = 60'-0" DRAINAGE & UTILITY EASEMENT - S89°16'02"E 798.73 - � _0� -- — — — HIGH WATER LINE — — — I NEW 8'-0" HIGH i CHAIN -LINK I FENCE TO MATCH OUTLOT A' ±72, 684 SF EXISTING (DRAINAGE & UTILITY EASEMENT OVERALL OF � A/ A/ OUTLOT A) RETAINING WALL, i w SEE CIVIL �I I w I EXISTING I < I INFILTRATION 1 z II BASIN I CD EXIJEN I I = TRII , -- -—- EXISTING 8'-0" HIGH CHAIN -LINK FENCE TO REMAIN EXISTING OUTDOOR STORAGE PLAT '2' ±664,866 SF >CHWIETERS BUILDING'5' EXISTING 144,000 GSF EXISTING OUTDOOR STORAGE PPROXIMATE AREA OF DEFERRED PARKING (AS REQ'D BY CITY) ,231 SPACES/ ❑ — — — — — — — — — — — — - -�� - - - - - - - — - — - - -- _ — -- N89°33'08"W 895.01 I PLAT '1' ±70, 311 SF 27 PARKIN —SPACES- -EXISTING L 0 N I� 0 Ico z w w W Q w J otS w c� z 0 1 4 0 T H S T PEP RS GENERAL NOTES - SITE PLAN A. DO NOT SCALE DRAWINGS B. FIELD VERIFY ALL DIMENSIONS C. G.C. TO VERIFY EXISTING SITE CONDITIONS PRIOR TO CONSTRUCTION. IMMEDIATELY NOTIFY ARCHITECT OF ANY DISCREPANCIES. D. SEE LANDSCAPE ARCHITECTURE DOCUMENTS FOR PLANT LOCATIONS AND TYPES. E. SEE CIVIL ENGINEERING DOCUMENTS FOR UTILITIES, GRADING, STORMWATER, AND DIMENSIONAL SITE REQUIREMENTS. THESE ITEMS SHOWN HERE ARE FOR REFERENCE ONLY AND MAY NOT BE ACCURATE. F. SEE ELECTRICAL DOCUMENTS FOR EXTERIOR SITE LIGHTING. PARKING CALCULATIONS ORIGINAL PARKING CALCS (2018) BUILDING 5 MANUFACTURING 131,800 SF STORAGE 7,200 SF OFFICE 5,000 SF PREVIOUS REQUIRED PARKING MANUFACTURING 264 SPACES (2 PER 1,000 GSF) STORAGE 5 SPACES (1 PER 1,500 GSF) OFFICE 25 SPACES (1 PER 200 GSF) TOTAL 324 SPACES ACTUAL 127 SPACES @ BLDG 5 DEFERRED (197 SPACES) UPDATED PARKING CALCS (2021) BUILDING 5 MANUFACTURING 131,800 SF STORAGE 7,200 SF OFFICE 5,000 SF BUILDING 7 MANUFACTURING 43,320 SF TOTAL MANUFACTURING 175,120 SF TOTAL STORAGE 7,200 SF TOTAL OFFICE 5,000 SF CURRENT REQUIRED PARKING MANUFACTURING 351 SPACES (2 PER 1,000 GSF) STORAGE 5 SPACES (1 PER 1,500 GSF) OFFICE 25 SPACES (1 PER 200 GSF) TOTAL 385 SPACES ACTUAL 127 SPACES @ BLDG 5 27 SPACES @ BLDG 7 DEFERRED (231 SPACES MAX) ■ O d Ln z L_n J O o- r*40*14 0—Q LIJ 0 z w zw LLI Q w N rm rn CV m I hereby certify this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Architect under the laws of the MINNESOTA 9W `O O •� �-ntzell i Date: ' �, 8 Reg. No: 15125 O NO. DESCRIPTION DATE Revisions SITE PLAN REVIEW 7/30/2021 VICTOR LAND HOLDINGS BUILDING7 MANUFACTURING SITE PLAN Project number 21009.00 Date 7/30/2021 Drawn by ZHF Checked by MW Q N N A002 Scale As indicated IN 0 2�1 N 1 2 3 4 5 6 7 a DocuSign Envelope ID: FCD72E00-A64B-4F6E-9E61-E015A54D85B8 VICTOR LAND HOLDINGS, LLC 13925 FENWAY BLVD N HUGO, MN 55038 (651) 762-1110 November 9, 2021 Rachel Juba Community Development Director City of Hugo 14669 Fitzgerald Ave N Hugo, MN 55038 Re: 140th Street Extension Dear Rachel, Victor Land Holdings is requesting that the City of Hugo adds 140th street extension to their CIP plan for 2022. This extension would be from existing connection west of Fenway Blvd N to the City Park property. The extension of 140th street would be City led from design through construction of the project to be completed in 2022. Since this street is bordered by City owned property to the north and to the west along with Victor Land Holdings property, we are proposing a 50/50 cost share in the project. Victor Land Holdings is also requesting that its share of the expense be assessed over 5 years. We appreciate your consideration on this matter and look forward to the City of Hugo's partnership on this matter. Sincerely, Victor Land Holdings, LLC Docuftned by: DBFS5D41E90 01... John H. Schwieters Owner JHS/bjk EXHIBIT A TO RESOLUTION 2013 - TO SPECIAL ASSESSMENT POLICIES OF THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA 1) New Roadway Improvements a) The City may become involved in designing, constructing, or financing new developer - driven roadway and associated improvements where the City determines at its sole discretion that it is a benefit to the City to do so. The following criteria shall be evaluated by the City in making the determination: i) Limited to collector streets and associated utilities as shown on the City's Comprehensive Plan. (1) Requires an evaluation of benefits to traffic flow and access. ii) Limited to areas with commercial or industrial economic development potential. (1) Requires an analysis of likely business opportunities and job creation. iii) Property lines or other factors make construction of planned infrastructure improvements unlikely. 2) Financing a) City involvement in designing, constructing, or financing new developer -driven roadway and associated improvements is contingent on the following parameters: i) Development of a financing plan that identifies total costs and matching revenue sources that guarantees 100% cost recovery by the City. ii) Special assessments for the improvement project will be levied to the subject property if the following conditions are met: (1) The assessment amount does not exceed 50% of the current property value. (2) The owner concurs that the increase in fair market value of the subject property will be equal to the total cost of the improvement project, and that such increase in fair market value is a special benefit to the subject property. (3) The owner concurs that the amount of the assessment against the subject property is reasonable, fair and equitable. Page 1 (4) The owner represents and warrants that the subject property is not so classified for tax purposes as to result in deferral of the obligation to pay special assessments; and the owner agrees that it will take no action to secure such tax status for the subject property during the term of the assessment. (5) The City obtains mortgage consents from all lenders and/or lien holders to ensure that payment of the assessments takes first position in the event of default. iii) Special assessments for the improvement project will be levied to the subject property in the following manner: (1) Special assessments shall be payable over a maximum term of five (5) years and bear interest at a rate of two points over the bond rate if bonds are issued by the City for the improvement project, or two points over the current bond rate as determined by the City's financial consultant. (2) To secure payment of the special assessments, the owner of the subject property shall provide to the City a letter of credit, cash surety, or combination thereof, for 60% of the total assessment amount. Reference herein to special assessments shall be deemed to include, and shall include, all interest thereon. The bank and form of the letter of credit or other security shall be subject to the approval of the City Administrator. Such letter of credit shall be maintained in effect until all assessments are paid in full. As assessments are paid, the letter of credit may be reduced or replaced by substitute letters of credit, not more often than once every twelve months, to an amount that is not less than the amount of the unpaid assessments. In the event special assessments are not paid when due, the City may draw on the letter to pay such special assessments. iv) Special assessments against each lot must be paid in full prior to any of the following occurrences: (1) Change in ownership (2) Subdivision of the lot (3) Issuance of a building permit for that lot. Page 2