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HomeMy WebLinkAbout2015.01.13 EDA Agenda PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, JANUARY 13, 2015 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call 5:02 pm 3. Approval of Minutes • EDA Meetings of December 9, 2014 5:03 pm 4. Discussion on 2015 EDA Goals 5:30 pm 5. Discussion on Options for Marketing City Owned Property 5:50 pm 6. Discussion on MNCAR Membership 6:05 pm 7. Discussion on Letter from Brian Wurzer 6:25 pm S. Update on Downtown Redevelopment 6:30 pm 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, JANUARY 13, 2014 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the December 9, 2014, EDA meetings as presented. 4. DISCUSSION ON 2015 EDA GOALS At its December meeting, the EDA started the 2015 goal setting process. Several items were discussed. The EDA should review the 2015 goals for the EDA and provide feedback and any additional goals to staff. Staff recommends that after discussion the EDA should adopt the goals to forward to the City Council. The City Council will be holding its 2015 Goal Setting Workshop on Tuesday, January 20, 2015, at 7 PM. 5. DISCUSSION ON OPTIONS FOR MARKETING CITY OWNED PROPERTY At its December meeting, the EDA directed staff to start the cancelation process for the listing agreement for the City owned properties with Wakota Commercial Advisors, LLC. The contract can be canceled with a 30 day notice. Staff sent the notice letter to Wakota Commercial Advisors, LLC, and the termination will occur on January 22, 2015. Staff was also directed by the EDA to provide options for marketing the City owned property in downtown. Staff will present options to the EDA at the meeting. Staff recommends the EDA discuss the options and provide direction to staff. 6. DISCUSSION ON MNCAR MEMBERSHIP OPTIONS At its December meeting, staff presented a brief overview of MNCAR membership options with the EDA. The generally agreed that these may be good options, but wanted additional information on the benefits of each. Staff enclosed a sheet that covers the details for each membership option. Staff recommends the EDA discuss the options. As part of this discussion there is information on what would need to be completed to host a commercial realtor forum through MNCAR. This would be a credit qualifying program for commercial realtors to attend. Staff recommends the EDA discuss this option and provide direction to staff. 7. DISCUSSION ON LETTER FROM BRIAN WURZER At its December meeting, Commissioner Puleo asked for this item to be included on the January agenda. The letter was provided in the December EDA packet and is also included in this packet. Staff recommends the EDA discuss the letter. 8. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on downtown redevelopment. MINUTES 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 0, 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. I\ 11111U:i\�I� I �l►1111 Klein made a motion, seconded by Houle, to adjourn at 6:31 P.M. All ayes. Motion carried. O LO TOM O N 00=\ a 0 W CD N Aw E L O a E a O 4i 0 co w a� a a� 0 CL CL 2 MNCAR Membership Economic Development Membership (an individual not an entity) $250.00 Annually Benefits: 1. Member pricing on MNCAR events 2. Member pricing on the MNCAR Exchange ($900.00 Annually) 3. Name, photo, contact info on MNCAR Affiliate Member Roster 4. All association communications including monthly FOCUS E -newsletter S. Networking with commercial real estate professionals 6. First chance at sponsorship opportunities Exchange Membership (through Xceligent) You can List ANY property for free, but there are added benefits to be a member $1,635.00 - New -member $1,740.00 - Non-member Benefits: 1. Search more than 12,000 listings and 49,000 properties 2. Reach 1,000+ brokers using a targeted Broadcast Email System 3. List and market properties you are representing 4. Generate over 30 high quality, professional -looking color reports S. Access more than 90,000 verified Sales Comps Sponsorship $3,500.00 Annually 1. 4 Complimentary program tickets in 2015 a. MNCAR Expo i. $1,000.00 for a booth, plus two tickets ii. $45.00 to attend, no booth iii. 550-600 people attend 2. Rotating banner ad on the MNCAR homepage for 5 months 3. Unlimited Featured Properties on our homepages for all of 2015 (a $3,000 value) a. Different from Exchange Membership b. Not on Exchange, only on front page of website 4. Your logo featured at MNCAR programs 5. Your logo in our Monthly eNewsletter 6. Your logo on our website Sponsor Page Continuing Education Program (Commercial Realtors Forum) Free (plus Department of Commerce fee of $10 per attendee after 10) 1. Course outline approved by MNCAR 2. Brief biographies of speakers 3. Commitment to add wording about MNCAR on promotional items 4. Department of Commerce approval required for Credits November 5, 2014 Brian Wurzer 8126 165th St N Hugo, MN 55038 Dear Mr. Wurzer: of 10 14669 ;erald Avenue North, Hu MN 55038 (651) 762-6300 www.ci.hugo.mmus Thank you for your letter in regards to the Metropolitan Council Environmental Services (MCES) refund the City received in 2012. The sewer system is comprised of lift stations and sewer mains that total over $9.1 million and are depreciated over a useful life of 40 years. Periodically, the lift stations and mains need to be replaced. The City has a sewer fund that supports those replacements through a sewer usage charge on your utility bill. Shortly after the refund was received, the City dropped its residential sewer rates back to 2010 levels and commercial sewer rates to back to 2004 levels. They remain at these Ievels today. This was at an annual cost (decreased revenue) of $128,500.00. The balance of the refund was set aside in the sewer fund to provide for the future replacement of the sewer fund assets. As you may know, downtown redevelopment has been an ongoing priority of the Economic Development Authority (EDA). At its meeting on Tuesday, December 9, 2014, the EDA will be setting goals for 2015. The public is welcome to attend all EDA meetings and I invite you to attend this meeting. This is a great opportunity provide the EDA with your suggestions for downtown as they plan for the year ahead. Please let me know if you have any questions and are welcome to contact me at (651) 762-6320 or bbear@ci.hugo.mn.us. Thank you. Sincerely, Bryan J. Bear City Administrator Cc: Honorable Mayor and Council Hugo EDA The Citizen Newspaper To whom it may concern-Hugo.E.D.A? /a -n W Wl AN UPDATE PLEASE and a SUGGESTION: PLEASE update the citizens of Hugo on how the $880,000 +- REFUND check that the people of Hugo were overcharged by the Metropolitan Council Environmental Services on sewage was spent?? Could you please Break Down on how you spent our money?? If, its spent OR. HERES a SUGGESTION to CONCIDER on how it could be used to BENFIT the AREA. WITH ALL THE MONEY BEING SPENT ON Hardwood Creek. (Extending and Resurfacing it). How about making it SAFER to use at night. ORIGINAL DOWNTOWN needs to look up to date! (Lighting stinks, old overhead wires) looks 50's. But if you go onto CR. 14 you have ENOUGH NEW LIGHTS (no wires) to do a great job of lighting up EMPTY FIELDS on Both sides!! For a mile. If you take out I/2 (EVERY OTHER ONE 35+-) already paid for NEW lights, which would still leave more than enough on CR. 14. And Replace the old (16+- ) lights on 61 From the post office to 140" St. IT would make it BRIGHTER, SAFER., AND MORE APPEALING APPERANCE means a lot to a Downtown! ESPECIALLY, if your trying to LURE INVESTORS in. It would also allow for a place to Hang X -Mas Lights -American Flags up along the 61 corridor (REMBER WHEN). ST. LIGHTS ALREADY PAID FOR JUST RELOCATE SOME- labor from the peoples refund checks?? (THE TOWN BENEFITS). BRIAN WURZER HUGO, MN 8126 N 165th St. Hugo, MN 55038 ( Please don't print address in Paper! ! ! Not Necessary ).