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HomeMy WebLinkAbout2014.12.09 EDA MinutesMINUTES FOR THE EDA MEETING OF DECEMBER 9, 2014 Weidt called the meeting to order at 5:02 pm. PRESENT: Denaway, Gallivan, Houle, Klein, Petty, Puleo, and Weidt ABSENT: NONE STAFF: Bryan Bear, City Administrator Rachel Juba, Planner Connor Schaefer, Community Development Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF OCTOBER 10, 2014 Klein made motion, Puleo seconded, to approve minutes for the EDA meeting of October 10, 2014 All Ayes. Motion carried. UPDATE FROM REALTOR OF CITY OWNED PROPERTY IN DOWNTOWN HUGO Planner Juba gave an update regarding the City owned property in Downtown Hugo. Two months ago, the EDA asked for Bill Bergeson, High Pointe Realty to report back to the EDA after two months. She stated that Bergeson would present the EDA a list of contacts and market comparisons. Bill Bergeson, High Pointe Realty, addressed the EDA. He referenced the list of 30+ of names whom he has been in contact with regarding City owned property in Downtown Hugo. He then referenced a list of comparable properties. He stated it is in his opinion that the City owned property has a higher value than the comparables. He stated the price of the property is not the main reason for the lack of interest shown from developers, but it is due to the lack of businesses that are investing in building commercial spaces. Chairman Weidt asked what the next steps are. Bergeson answered saying that no similar properties sold within a year. He stated that the EDA might want to discuss the price of the land. He stated that the EDA should be patient with the property. Commissioner Denaway asked if price flexibility has been indicated. Bergeson stated that it was one of his main selling points. Commissioner Puleo asked what the asking price for the land is and when it was determined. Planner Juba stated that the starting price of the land is $6/square foot. She stated it was determined when the City went into a contract with Wakota Commercial. She stated the price was put there knowing there was flexibility for the right project. Puleo asked if sewer and water is available for the City owned properties and if it is still in a tax -increment financing district. Juba answered yes to both questions. Commissioner Denaway stated that as a tool for the EDA, we can drop the land price, which could bring in more interest. Bergeson stated me has been conveying that. Chairman Weidt stated that there was already a restaurant design done for the city owned property. Bergeson stated that he recently received permission to use those plans. Commissioner Denaway asked Bergeson if he had shown anyone the site to anyone aside from Bill Lentsch. Bergeson said no. City Administrator Bear stated that the comparable properties that Bergeson provided shouldn't guide the EDA for pricing. Bergeson stated that he agrees and that the comparables provided were the closest he could find given limited time. Bear asked if Wakota Commercial or Bergeson got the phone calls received from the phone number listed on the sign posted on the city owned property. Bergeson answered saying no but he should be getting the calls, and would try to ensure that happens. Planner Juba asked Bill Bergeson if he posted the city owned property on MNCAR.org. Bergeson answered yes. DISCUSSION ON MARKETING OF CITY OWNED PROPERTY IN DOWNTOWN HUGO The EDA collectively agreed that the site has a lot of advantages that should make it attractive to developers. Chairman Weidt asked how long the City's contract with Wakota Commercial is. Planner Juba answered saying April 4th, 2015. City Administrator added that the City has the option of cancelling the contact early with a 30 day notice. The EDA collectively decided to issue a 30 day notice to Wakota Commercial in order to cancel their contract to market the city owned property located in Downtown Hugo. The EDA directed staff to prepare options to move forward at the next meeting. UPDATE ON COMMERCIAL REALTOR FORUM Planner Juba provided a recap of the previous discussion on the Commercial Realtor Forum. The EDA concluded that the City was doing a good job but that more economic development outreach was needed. Planner Juba also provided background information on Minnesota Commercial Association of Real Estate (MNCAR) partnership opportunities. These options included an annual membership or co -sponsoring an event. EDA concluded that the may consider these options moving forward and directed staff to provide additional information at its next meeting. UPDATE ON DOWNTOWN REDEVELOPMENT Planner Juba stated that staff is still working with O'Reilly Auto Parts on their site plan application. Commissioner Houle asked if O'Reilly will be requesting variances. Juba answered saying O'Reilly is asking for four variances. City Administrator Bear added that the variances will trigger public hearings. 2015 GOAL SETTING Planner Juba presented on the projects the City and EDA have worked on in 2014. After discussion, the EDA removed the goal "Created a 5 year EDA Plan" and the corresponding action items. Then, the EDA added the goal "Economic Development Strategic Planning" and the corresponding action item, "Evaluation of potential industrial park development". Further goal setting discussion will resume at the next EDA meeting. ADJOURNMENT Klein made a motion, seconded by Houle, to adjourn at 6:31 P.M. All ayes. Motion carried.