HomeMy WebLinkAbout2008.07.21 EDA MinutesMINUTES FOR THE EDA MEETING OF JULY 21, 2008
EDA Vice President Phil Klein called the meeting to order at 8:35 am.
PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Phil Klein, and Fran Miron
ABSENT: Mike Granger and Brian Thistle
CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development
Director Bryan Bear, and Associate Planner Rachel Simone
APPROVAL OF MINUTES FOR THE EDA MEETING OF JUNE l6, 2008
Arcand made motion, Klein seconded, to approve the minutes for the EDA meeting of June 16, 2008.
All aye. Motion carried.
CARPENTERS RESTAURANT SITE PLAN UPDATE
Staff presented to the EDA the concept plan for Carpenters on the Lake. Mike Anderson
from Carpenters Restaurant was present at the meeting. The plan shows a two story 16,000
square foot building with a banquet room and attached retail spaces. Mike Anderson would
like to start the site plan and TIF application approval process. Staff recommended that the
EDA provide informal feedback on the plan.
Mike Anderson stated that he would be applying for variances from the Shoreland setback
requirement and parking requirements. He talked about either leasing or purchasing City
property to the north for construction of a parking lot. He stated that the site plan does not
show any stormwater management at this time, but will be incorporated at a later date.
Miron asked about the DNR's feelings on the Shoreland setback requirement. CD Director
stated that staff has not contacted the DNR to date, but will be talking with them about the
downtown area. Miron asked about the stormwater management on the site. CD Director
stated that the city will need to look at this area as a whole for stormwater management.
Klein talked about Mr. Anderson's wish to either purchase or lease the City owned property.
Miron stated that he would like to review each option. CD Director stated that staff will look
at the options, but either way a cross access and parking agreement would be required.
Mike Lueth from Lampert Architects gave an overview of the building architecture. Miron
stated that the building looked good and that having two -stories gives the building character.
Bever agreed and stated that the site looks like it needs more green space and the deck looks
too small. Arcand asked about what kind of retail uses would be incorporated in the building.
Mr. Anderson stated that most likely office uses or small retail users. Arcand stated that the
architecture was not interesting and was not what she was thinking the architecture was going
to look like. Denaway stated that he was concerned about the access to the retail spaces.
The EDA agreed that views to the lake should be maintained and more green space
integrated to the downtown area.
DISCUSSION HUGO COMMONS TIF APPLICATION REVIEW
Paul Steinman from Springsted provided the EDA with the outcome of the TIF application
analysis for the former End Zone property. Bill Lentsch who has the purchase agreement on
the property was present at the meeting. Staff recommended that the EDA direct staff on
whether or not to draft a TIF Agreement with the applicant and bring it back to the EDA at
their August meeting.
Paul Steiman stated that the project would not be feasible with out the use of TIF. He
explained the analysis of the TIF application. The project includes the acquisition,
demolition, site preparation and construction of a 23,000 square foot commercial/retail
building. The Developer estimates the total development cost of the project to be $4,353,490.
The Developer has requested TIF assistance in the amount of $543,100 (present value) in the
form of a pay-as-you-go reimbursement, which is an annual payment of tax increment from
the City to the Developer. The property will pay an annual base property tax, to all taxing
jurisdictions, of $9,906 through the term of the district. We estimate the annual tax increment
reimbursement to commence in year 2 (2010), with a payment of $32,251, and the first full
year of reimbursement in year 3 (2011) of $50,461 based on a total Estimated Market Value
of $4,159,450. Paul stated that the project does not yet have financing and will not move
forward until 60% is leased.
The EDA generally agreed with the analysis of the TIF Application.
Denaway made a motion, seconded by Klein, for staff to prepare a TIF Agreement and bring
back to the EDA for review at their August meeting.
All aye. Motion Carried.
UPDATE ON DOWNTOWN REDEVELOPMENT
Staff updated the EDA on the progress of the downtown redevelopment projects. CD
Director talked about Ricci's Restaurant and the status of the building. He stated that the City
will need to work with the owners of the property because of intersection improvement in the
area. Chuck Lowell's pole barn has been removed from his property located on Finale.
UPDATE ON BR&E SUBCOMMITTEE
The Associate Planner updated the EDA on the progress of the BR&E Subcommittee. The
Business Profile Questionnaire is planned to be sent out in the next week. This will give the
committee an idea of the businesses that would like a case study completed on their business
or what other areas are needed for help. The committee will also be doing site visits to
businesses in the near future.
DISCUSSION ON MARKETING AND PROMOTION OF THE CITY
The City has repeatedly received praise for its efforts in managing the recovery process
following the disaster. The city staff believes the extraordinary media coverage the City has
received during the past few weeks has cast a positive spotlight on the attitude and
professionalism found within the City of Hugo. Staff discussed with the EDA ways to
promote the City during this unique time as a good place to locate a business.
Miron made a motion, seconded by Denaway, to send out a promotional package to
developers to get their interest in the downtown area.
All Aye. Motion Carried.
ADJOURNMENT
Klein made a motion, seconded by Arcand, to adjourn at 10:35 am.