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Home My WebLink AboutEDA PACKET 02.21.23If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or rjuba@ci.hugo.mn.us, thank you. Agenda ECONOMIC DEVELOPMENT AUTHORITY (EDA) Tuesday, February 21, 2023 Hugo City Hall 5:30 PM 5:30 pm 1. Call to Order 5:31 pm 2. Roll Call (Arcand, Chrun, Denaway, Gallivan, Klein, Puleo, Roberts, Weidt) 5:32 pm 3. Approval of Minutes EDA Meeting of December 20, 2022 5:35 pm 4. EDA Annual Report of 2022 5:50 pm 5. Approval of 2023 EDA Goals 5:55 pm 6. Update on Downtown Hugo Project and Discussion on Extension of Purchase Agreement 6:05 pm 7. Adjournment If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or rjuba@ci.hugo.mn.us, thank you. Background memo for the EDA Meeting of Tuesday, February 21, 2022 3. Approval of Minutes Staff recommends approval of the minutes from the December 20, 2022 EDA Meeting as presented. 4. EDA Annual Report of 2022 Staff will provide a review of the EDA activity within the City of Hugo during 2022. 5. Approval of 2023 EDA Goals At its December 20, 2022 meeting, the EDA discussed and set goals for 2023. Staff recommends approval of the 2023 EDA Goals as presented. 6. Update on Downtown Development Staff will update the EDA on the Downtown Hugo Project. The developer is requesting a 5 month extension of the purchase agreement. Staff recommends the EDA approve the purchase agreement extension. MINUTES FOR THE EDA MEETING OF DECEMBER 20, 2022 Chair Weidt called the meeting to order at 5:30pm. PRESENT: Arcand, Chrun, Gallivan, Klein, Roberts, Weidt ABSENT: Denaway, Puleo STAFF: Bryan Bear, City Administrator Rachel Juba, Community Development Director Max Gort, Associate Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF SEPTEMBER 20, 2022 Commissioner Klein made a motion, seconded by Commissioner Roberts, to approve the October 18, 2022 EDA meeting minutes. Ayes: All. Nay: None. Motion carried. 2022 EDA REVIEW Associate Planner Gort gave a presentation to the EDA highlighting economic development throughout the City in 2022, and what has changed relative to the goals adopted for 2022. Hugo’s population continued to grow, with the Met. Council’s estimation reaching over 16,000 for the first time. The Downtown Hugo project is underway, along with the visioning and jurisdictional transfer study for Highway 61. The City completed its projects of reconstructing Lions Park (now named Lions Volunteer Park), the new community building known as Peder Pedersen Pavilion, and the new Public Works building. The White Bear Lake Area School District completed its new elementary school known as North Star Elementary. Commercial and industrial projects such as Schwieters Building 7 and Eagle’s Landing were completed. Xcel Energy received approval from the Planning Commission and City Council to expand their existing training facility, which is to include a “mock” substation and transmission lines, as well as a new 40,000 square foot building hosting high volume training events twice p er year. The Building Department received 107 permits for new single-family homes, with more residential projects in planning stages. Community Development Director Juba gave an update on the Downtown Hugo project, stating that it was approved with recommendations from the EDA and Planning Commission to the City Council. The developer wants to come back and discuss issues such as the relocation of the watermain. Additionally, the developer has received letters from the MnDNR opposing the project due to th e location of buildings and decking relative to shoreland statutes, with the latest letter indicating that the DNR wants to conduct meetings with staff to change the plan so that it meets dimensional standards. Commissioner Chrun asked if the setback was the DNR’s primary concern, and Juba stated that flexibility was given through PUD criteria. Commissioner Roberts asked how comfortable the EDA would be with a potential extension of the purchase agreement, with Commissioner Arcand and President Weidt statin g that the timeline is out of the applicant’s control. City Administrator Bear stated that the EDA is the applicant’s primary negotiating group, and that the EDA should have an expectation for the applicant to perform well on the design. 2023 GOAL SETTING Juba gave background on topics discussed at the Planning Commission’s goal setting, with a review of the Commercial and Industrial Design Guidelines, and review of the City’s approach to apartment projects being the main items that may be brought to the EDA’s attention. Juba highlighted action items that were taken in 2022, being the evaluation and review of downtown area beautification and adoption of new banners. The Highway 61 Visioning Study was delayed from its original start date of May 2022, but is now underway with Washington County’s hiring of Bolton & Menk as consultants. Commissioner Chrun stated that the EDA should be involved in the discussion around apartment projects, with President Weidt adding that assessing the City’s commercially zoned property and whether it adequately meets demand being involved. Commissioner Klein discussed eventual sewer and water extension to the areas south of 165 th Street and west of Highway 61, with President Weidt suggesting the EDA continue small area planning in these locations. Commissioner Roberts suggests removing goals related to the COVID-19 pandemic, and Commissioner Arcand suggests regular reviews of the EDA’s goals throughout the year. Commissioner Klein asked about water resource concerns with the ongoing issue of the water level of White Bear Lake. Bear stated that water resource management is still one of the biggest issues the City faces, but is unsure of how much attention the EDA should devote to it. Commissioner Arcand stated that the EDA should be interested in the development of the Highway 61 visioning study. Juba responded that stakeholder lists will be made further along, at which time the EDA may be involved. Commissioner Roberts asks about other partnership opportunities, but the EDA determined that these were not as viable. Juba stated that a draft of goals will be brought to the ne xt meeting, with feedback able to be provided. ADJOURNMENT Commissioner Gallivan made a motion, seconded by Commissioner Klein, to adjourn at 6:31 PM. All ayes. Motion Carried. Respectfully submitted. Max Gort, Associate Planner 2023 Goals Economic Development Authority (EDA) •Stay informed of the Highway 61 Visioning Study with Washington County •Discuss and encourage small area planning in the area of 165th Street and Highway 61 •Evaluate commericaly zoned property in regards to uses, including residential. •Assist and encourage redevelopment and beautification of properties in downtown Development and Downtown Redevelopment •Continue low development costs •Continue business visits and the BR&E Program •Provide resource lists for business •Promote Washington County CDA grant and Open to Business Program Maintain a Business Friendly Environment •Continue memberships of economic development associations •Encourage businesses to identify themselves as being located in Hugo •Attend Technology Corridor (I35E) meetings •Continue to encourage and monitor infrastructure improvements to promote economic development Marketing / Promotion of the City •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 Partnerships 1 THIRD AMENDMENT TO PURCHASE AGREEMENT This Third Amendment to Purchase Agreement is made effective August 1, 2022 by and between the City of Hugo (“Seller”) and DENNIS Properties, LLC (“Buyer’): WHEREAS, Seller and Buyer are parties to that certain Purchase Agreement dated January 20, 2021 relating to approximately 4.5 acres of land located in the City of Hugo, as amended by the First Amendment to Purchase Agreement and Second Amendment to Purchase Agreement (collectively the “Purchase Agreement”); WHEREAS, Seller and Buyer desire to enter into this Third Amendment to the Purchase Agreement as more fully set forth below; NOW, THEREFORE, Seller and Buyer hereby agree to this Third Amendment as follows: 1. The first and second sentences of section 3(A) are hereby replaced in their entirety by the following: First Phase: The First Phase shall occur no later than July 31, 2023, (the “First Phase Closing Date”); provided, however, that Buyer may by written notice to Seller extend the First Phase Closing Date to December 31, 2023, in which case $10,000 of the Earnest Money may become nonrefundable as set forth in section 2.b.(iii) above. The portion of the Property to be acquired at the First Phase shall consist of not less than 1 acre and not more than 2.3 acres of the real property. 2. The first sentence of section 3(B) is hereby confirmed to be the following: Second Phase: The Second Phase shall occur no later than September 30, 2026 (the “Second Phase Closing Date”); provided that Buyer may extend the Second Phase Closing Date to September 30, 2027 if Buyer deposits Twenty Thousand Dollars of additional Earnest Money with Escrow Agent no later than September 30, 2026. 3. The date of December 31, 2022 in the first sentence of section 4(A) is changed to May 1, 2024. 4. The date in the first sentence of Exhibit B, section 1 is hereby changed to May 1, 2024. 5. In Exhibit B, section 2, the date of December 31, 2023 is changed to May 1, 2024, and the date of March 1, 2024 is changed to July 1, 2024. 2 6. In all other respects, the Purchase Agreement remains in full force and effect and is not amended. SELLER: CITY OF HUGO _________________________________ By: Tom Weidt Its: Mayor BUYER: DENNIS Properties. LLC By:_____________________ Dennis Trooien Its: Chief Manager