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HomeMy WebLinkAboutMINUTES EDA 03.19.24MINUTES FOR THE EDA MEETING OF MARCH 19, 2024 President Weidt called the meeting to order at 5:56 PM PRESENT: Arcand, Chrun, Denaway, Klein, Puleo, Weidt ABSENT: None STAFF: Rachel Juba, Community Development Director Max Gort, Associate Planner Bryan Bear, City Administrator APPROVAL OF MINUTES FOR THE EDA MEETING OF DECEMBER 19, 2023 Commissioner Klein made a motion, seconded by Commissioner Chrun, to approve the January 16, 2024 meeting minutes. Ayes: All. Nay: None. Motion carried. DISCUSSION ON THE CITY OWNED PROPERTY DOWNTOWN Community Development Director Juba presented with background on the discussion held at the January 16, 2024 EDA meeting relating to the future of the city -owned property on Egg Lake, and providing an update since the direction was given to staff to pursue implementation flexibility with the DNR’s shoreland rules, explore interim uses for the site, and plan to re-market the property for development. Several items had already been completed to prepare the site for marketing to a commercial user, including property control, proper zoning, community input, the Downtown Plan and Design Guidelines, a market study for downtown, a registered survey with clean title, geotechnical information, and an environmental evaluation. Staff has also completed tasks to market the property. Staff created a summary of financing options and savings, including the savings a developer would have from not having to pay for sewer and water trunk fees. There are 10 sewer availability charge (SAC) credits available to the site from previous uses. When comparing estimates of a restaurant similarly-sized to the Blue Heron Grill, staff estimated that there would be a total savings of $121,834 passed onto the developer when using the SAC credits. Commissioner Puleo asked if the potential savings along with sale cost of $1.00 were known to the developer who most recently had an approval on the site, Denny Trooien. Juba said that Trooien was aware of the potential savings, and had additionally asked for additional City contribution for relocating infrastructure and environmental cleanup. Another option for staff to market the property is to create a marketing brochure and flyers. Such materials may include information highlighting site features, development criteria, benefits and financial savings, area highlights, fast facts, and area demographics. Commissioner Denaway commented that an addition of the property’s valuation may be useful for attracting a developer, highlighting the immense savings provided that the developer can meet the development criteria to purchase the property for $1.00. Another option for staff to market the property is to reach out to commercial real estate brokers, including engaging with groups such as the Minnesota Commercial Association of Realtors (MNCAR), the Economic Development Association of Minnesota (EDAM), the Minnesota Shopping Center Association (MSAC) and others. Staff could showcase the property on various commercial real estate websites such as MNCAR and Loopnet. Commissioner Klein asks if there are any property tax incentives from Washington County for this form of commercial development. Juba responds that there are some grant opportunities from groups like the Community Development Agency (CDA), but they tend to fall towards master planning a site rather than development or construction financing. Additional marketing options to engage with brokers include an email blast, sending mailings to commercial brokers and developers, and ultimately trying to initiate meetings with commercial brokers and restauranteurs. Commissioner Arcand asked what the strategy could be to engage with restauranteurs. Juba responded that there’s a list of contacts we typically reach out to, mainly construction companies that focus on restaurants and commercial properties. The final option presented by staff to market the property is to place a new sign advertising the property. There was previously a basic sign that had gotten pretty worn by the time of its re moval. Additionally, Mr. Trooien had left the pylons f rom the sign advertising his project, indicating that the City may use the pylons for a new sign. Commissioner Klein said that installing a new sign would be a good start. President Weidt asked about any potential communication with the ownership of of the Muddy Cow Restaurant Group, referencing the attached article in the meeting packet from the MSP Business Journal. Staff has had a conversation with the operating manager of the group, Patrick Conroy, who is a Hugo resident and has been opening other restaurants that are separate from the Muddy Cow branding, such as MC’s Garage and MC’s Taphouse. The article in the packet quotes Conroy saying that a “phenomenal location” would be needed to construct a new restaurant building from scratch. In a conversation staff had with Conroy, he stated that he had been in touch with Denny T rooien about opening a restaurant under his proposal, but Conroy indicated that Trooien’s plan didn’t provide enough parking for what he thought he needed. Juba stated that staff tended to agree that Trooien’s plan was under-parked. Juba highlights some items that staff and the EDA have learned since the proposal with Denny Trooien, including the need to do some environmental cleanup on site, the issues with th e DNR’s shoreland rules, the need to keep a developer on a shorter leash to ensure marketing efforts and a development plan are underway for approval and construction, and that the appropriate parking should be planned for upfront. President Weidt asked if there ’s anything else to do to make the site more shovel-ready, noting trees on site that may be removed. Juba referenced previous proposals that had certain trees preserved. President Weidt and Commissioner Klein said that the environmental cleanup may be a good step for to take since the City owns the property and would be one step that the developer wouldn’t have to take. Juba said that the EDA had previously suggested finding interim uses for the property such as community events. Staff had discussed this possibility but generally agreed that large-scale events are more suited for Lions Volunteer Park, which was constructed in 2022 specifically for such events. Staff will continue to explore interim uses for the property. ADJOURNMENT Commissioner Klein made a motion, seconded by Commissioner Denaway, to adjourn the meeting at 6:45 PM. Ayes: All Nay: None Motion carried. Respectfully submitted. Max Gort, Associate Planner