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HomeMy WebLinkAbout2013.05.14 EDA MinutesMINUTES FOR THE EDA MEETING OF MAY 14, 2013 Klein called the meeting to order at 5:05 pm. PRESENT: Arcand, Bever, Denaway, Klein, and Puleo ABSENT: Granger, Weidt STAFF: Bryan Bear, City Administrator Rachel Juba, Planner Liz Hanson, Community Development Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF MARCH 12, 2013 Bever made motion, Arcand seconded, to approve minutes for the EDA meeting of March 12, 2013. All ayes. Motion carried. HUGO BUSINESS ASSOCIATION (HBA) — MIKE GOEHNER Staff invited and welcomed Mike Goehner, President of the Hugo Business Association (HBA), to the EDA meeting. Mike updated the EDA on the HBA, new efforts, and his vision for the HBA. Bever commended the work the HBA has done in terms of networking opportunities. He said that these new opportunities have brought value to the organization. Bryan stated that things are being done at the City -level to help the HBA, such as helping with marketing material and City Welcome Bags. Mike concluded in saying that the HBA is working on growing the organization to add more value and provide more provisions for the members. DISCUSSION ON ASSESSMENT POLICY REGARDING FINANCING FOR INFRASTRUCTURE PROJECTS Bryan Bear presented to the EDA the Assessment Policy regarding financing for infrastructure projects. Staff is requesting that the EDA make a recommendation to the City Council on a policy question. The question being raised is whether the City should become involved in designing, constructing, or financing development -driven public improvements. Puleo asked if this policy covers all projects in the City or just roads. Bryan responded in saying that if one is just looking at the draft then it covers only collector roadway projects. The policy can be used as a baseline for other projects. Arcand asked if the policy is intended to be used in industrial/commercial areas or residential areas. Bryan stated that is focused on commercial/industrial areas. Klein asked Ron Otkin how the City will pay for these improvements, and specifically how the City will pay for the Rosemary Way project petitioned by Len Pratt. Ron responded in saying that the City will develop a finance plan depending on the project, and will use State Aid funds for the Rosemary Way project. Denaway stated that, ultimately, the developer pays 100% plus interest with this policy. The only risk is when the City gets directly involved in the financing aspect. Puleo asked if this policy could be used on smaller residential lots or lots with no sewer or water. Bryan responded in saying residential areas or local streets cannot benefit from this policy. The extension of utilities requires a complicated process. This policy does not restrict anything, rather it guides. Puleo stated that the EDA should consider expanding this policy for other commercial/industrial properties that are not related to only road improvements. Arcand stated that the EDA should look at this policy as a way to attract businesses. Bryan stated that the EDA can make recommendations to the City Council to prioritize certain public improvements. Klein invited developer Len Pratt to the podium. Len stated that he would like to see how this policy could attract more businesses, and he hopes that could be a successful outcome of this policy. Denaway stated that the level of risk is not out of the ordinary for a City to be involved in. He said that he would like two items added to the policy. The first would be the 60% of the Letter of Credit (LOC) to be split between LOC and cash portion to share the risk between public and private. The second item would be to have a third party review the project and financing as a way to take a full look at the situation. Arcand stated that she believes that it is time for the City to be aggressive and would like to see more develop take place. In that case, she is in favor of the policy. Puleo stated that he does not think the policy is expansive enough, and he does not agree to change the policy for one project. Bever asked Len Pratt if the policy meets his needs. Len responded in saying that it does. Klein stated that the City needs to be aggressive now. He does not want the City to be seen as a lender. He is comfortable with the 60% LOC requirement. He would like to move forward with this policy. Arcand made motion, seconded by Klein, to make a recommendation to the City Council to maintain the 60% LOC requirement and approve the policy. Four ayes. Two nays. Motion carried with a 4-2-0 vote. Bever made a motion, seconded by Denaway to make a recommendation to the City Council to be more aggressive and consider more expansion to the policy to spur economic development. All ayes. Motion carried. UPDATE ON CITY MARKETING Rachel Juba updated the EDA on the city marketing efforts staff has been working on. Staff has included profiles to help market the City in terms of community profile, demographics, economic development, consumer spending, and housing. These profiles are also available on the website under Economic Development. She concluded in saying that staff is currently working on handouts pertaining to traffic counts and workforce within the City. UPDATE ON CGI COMMUNICATIONS — CITY VIDEO TOUR Rachel updated the EDA on the CGI Communication efforts with the City. CGI has approached the City on their Community Video Program which would provide the production, editing, voice-overs, and background music on a "Welcome from the Mayor" video and three additional videos to showcase various aspects of the Hugo community. This will be free of charge to the City with an agreement that the City make the videos available for viewing through the City's website as well as featured on Relocate.org, which is said to be the largest relocation network in the nation. In addition, CGI will approach area businesses to offer an opportunity to take advantage of this program by advertising on the site. At its March 18, 2013, meeting the City Council approved Community Video Tour Agreement and the letter of introduction to be mailed to area businesses per the agreement. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT EFFORTS Staff updated the EDA on Washington County's Economic Development efforts. UPDATE ON DOWNTOWN REDEVELOPMENT Staff did not provide an update on downtown redevelopment due to time constraints. ADJOURNMENT Klein made a motion, seconded by Bever, to adjourn at 7:00 pm. All ayes. Motion carried.