Loading...
HomeMy WebLinkAbout2015.04.14 EDA Agenda PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, April 14, 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 Meeting of February 10, 2015 5:03 pm 4. Discussion on Marketing of City owned Property 5:30 pm 5. Update on the Future of the Rail Line 5:45 pm 6. Discussion on 2014 EDA Annual Report 6:00 pm 7. Appoint Commissioner to Gateway Subcommittee 6:15 pm 8. Update on Downtown Redevelopment 6:30 pm 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, APRIL 14, 2015 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the February 10, 2015, EDA meeting as presented. 4. DISCUSSION ON MARKETING OF CITY OWNED PROPERTY At its meeting on February 10, 2015, the EDA discussed the marketing of City owned property and staff provided an update on their meeting with the St. Paul Port Authority. Over the past few months the EDA has discussed other ways to market the property. An idea that was presented at the meeting was providing incentives that would be based on the project meeting certain development criteria. The EDA reviewed the development criteria and provided feedback to staff. Staff made revisions to the development criteria. At its April 6, 2015, meeting, staff presented the marketing idea, including suggested development criteria for projects to be eligible to purchase the property for $1.00, to the City Council. The City Council directed staff and the EDA to proceed with the development incentives and criteria. The Council also directed staff to contact the St. Paul Port Authority to see what they would charge to market the City property, with a report back to the Council. Staff will present the revised development criteria to the EDA. Staff recommends the EDA provide feedback on the development criteria and make a recommendation to staff on how to proceed with the marketing. 5. UPDATE ON THE FUTURE OF THE RAIL LINE Staff will update the EDA on the rail line in the Bald Eagle Industrial Park. 6. DISCUSSION ON 2014 EDA ANNUAL REPORT Staff will present the EDA with the 2014 EDA Annual Report. 7. APPOINT COMMISSIONER TO GATEWAY SUBCOMMITTEE One of the 2015 goals of the EDA and City Council is to build a vision for Hugo's gateways. There has been discussions and interest in installing entry monument signs, gateway elements in downtown, and park entry features. The committee will likely discuss features such as, sidewalk benches, City Hall signage, park benches and signage, intersection beautification, downtown features, and other community design elements. The subcommittee will prioritize and help decide the design of the features. A subcommittee is being put together which would make recommendations to the Parks Commission, Economic Development Authority, Planning Commission, and City Council. The subcommittee will have a representative from each Commission/ Council and meet a few times. It is anticipated that the sub -committee will set their work plan and meeting dates. Staff recommends the EDA appoint a Commissioner to the subcommittee. 8. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. Minutes for the EDA Meeting of February 10, 2015 Weidt called the meeting to order at 5:03 pm. PRESENT: Denaway, Gallivan, Houle, Klein, Petty, Puleo, and Weidt ABSENT: None STAFF: Bryan Bear, City Administrator Rachel Juba, Planner Rachel Leitz, Community Development Intern Approval of minutes for the EDA meeting of January 13, 2015 Puleo made motion, Klein seconded, to approve minutes for the EDA meeting of January 13, 2015. All Ayes. Motion carried. Update on Lions Park Parks planner, Shayla Syverson, gave an update on Lions Park. Syverson showed the EDA three different concept plans and requested insight on different aspects of the plans. The EDA was to keep in mind traffic flow and access, pedestrian connections and circulation, parking layout, locations of active and passive activities, and locations of parking next to certain park features. The EDA had good feedback for parks planner, Syverson. Theses ideas included opening the amphitheater up to the park to have more space, especially for larger events, and potentially moving the pavilion to the center of the fields in concept 3. The EDA also agreed that there needs to be some more discussion on the tennis courts and if there would be enough use to keep them in the plan. Commissioner Puleo asked if the park plans allow for 147th St. from Oneka Parkway to be connected to Highway 61. Syverson answered that the plans do allow for this. Commissioner Petty inquired about the splash pad water usage. Syverson described the kind of technology that is available within splash pad systems. Some of this technology includes a recirculating system, sensor systems, where the splash pad is only using water when someone is there, and water shutoff devices. Chairman Weidt described how he likes the playground in the corner by LaValle Fields, so the elderly residents can also enjoy the park and watch the children play. He also liked the memorial and the amount of parking. Parks Planner, Syverson, concluded by saying that the next step is to have input on the preliminary master plan concepts, which will be revised as needed, to then come up with the master plan to be approved. She said the goal is to be planning the shelter and have an idea of the budget and fundraising campaign by Good Neighbors Days, in June. Update on St. Paul Port Authority Meeting Planner Juba gave an update regarding the January 23, 2015 meeting with Staff and the St. Paul Port Authority. She described the steps the St. Paul Port Authority suggested to the City in marketing City owned property in downtown. These steps included property control, proper zoning, community input, creating a summary of financing options, putting together a marketing brochure, and reaching out to brokers. Planner Juba explained that the meeting with the St. Paul Port Authority reconfirmed that Staff has been taking the correct steps in beginning to market the City Owned Property and the St. Paul Port Authority have offered some help in this process. Discussion on Marketing of City Owned Property Planner Juba looked for insight from the EDA in developing potential criteria to sell the City owned property for $1.00. The EDA agreed that there should be development criteria and plans to continue to work with Staff to come up with this criteria. Staff will formulate this criteria and pass it on to the City Council for further review. Update on the Future of the Rail Line City Administrator, Bryan Bear, gave an update on the future of the Hugo Line. He described that the Hugo Line is a 10 mile line extending southward that has three businesses on it. The businesses that use the line are Schwieters, Loadmaster Lubricants, and NRI. The future of the rail line is uncertain based on business rail volumes, which are lower than original projections, and the Hugo Line needing significant maintenance. City Administrator Bear said that the City is facilitating meetings with the businesses and also talking with the railroad in an effort to help develop a strategy. The EDA agrees that the City needs to be involved and financially supportive to the businesses in keeping rail service. Commissioner Puleo made a motion, seconded by Klein, that the EDA support the financing of the railroad improvements. Chairman Weidt called for a roll call vote. Denaway: Aye. Gallivan: Aye. Houle: Aye. Klein: Aye. Petty: Aye. Puleo: Aye. Weidt: Aye. All ayes. Motion Carried. Update on Downtown Redevelopment Planner Juba updated the EDA on downtown redevelopment, particularly regarding O'Reilly Auto Parts. Adiournment Chairman Weidt made a motion, seconded by Klein, to adjourn at 8:03 pan. All Ayes. Motion carried. Suggested development criteria of desired elements for the redevelopment of the City owned property. A development project that meets the criteria is eligible to purchase the property for $1.00, subject to City approval. 1. A full service restaurant or some form of event center or family entertainment venue, situated so that the customers and public will benefit from views over the lake. Secondary retail, service and housing uses may be considered. 2. A development and phasing plan is required with all development complete within 3 years. 3. Quality architecture, building materials, and site design, exceeding requirements of the Downtown Design Guidelines. 4. Construction of public amenities, including pedestrian connections, a gathering place near Egg Lake, and public parking. REDVELOPMENT OPPORTUNITY LAND SALE OPTIONS ki �41�� `r Y 5►ag i��,S,c�s� �: PRIME DEVELOPMENT LAND DOWNTOWN HUGO Forest Boulevard (TH 61) on 4.3 acres Hugo, Minnesota 55038 PROPERTY • zoning: Central Business (C-1), allowing for commercial multiple uses. HIGHLIGHTS • A market study has been recently completed for the downtown area. • Located within a Tax Increment Financing (TIF) District. • Approved redevelopment plans for a restaurant use on a portion of the property. • Price of property can be reduced when development criteria is met. # • The property is owned by the City of Hugo.��r r, • Downtown Plan and Design Guidelines apply to development in this area. The property is located in the heart of the City of Hugo and offers a wide array of opportunities for any buyer. With over 650 feet of lakeshore frontage, this beautiful property is great for a mixed used development with a restaurant/entertainment use, as well as, commercial, boutique retail, office, and housing. This property could become the centerpiece for the downtown business district in the City of Hugo. A survey of the property is available upon request. City, of The property is within minutes of the newly redesigned freeway interchange at 135E (ADTV 86,900) and Ug0 County Rd 14/8 (ADTV 13,900). Highway 61 (ADTV 14,100) has been recently resurfaced and a turn lane has been constructed to access the property. The property is generally flat with very high visibility located on Highway 61. •� ty *� 1 t �'I� � # y • Approved redevelopment plans for a restaurant use on a portion of the property. • Price of property can be reduced when development criteria is met. # • The property is owned by the City of Hugo.��r r, • Downtown Plan and Design Guidelines apply to development in this area. The property is located in the heart of the City of Hugo and offers a wide array of opportunities for any buyer. With over 650 feet of lakeshore frontage, this beautiful property is great for a mixed used development with a restaurant/entertainment use, as well as, commercial, boutique retail, office, and housing. This property could become the centerpiece for the downtown business district in the City of Hugo. A survey of the property is available upon request. City, of The property is within minutes of the newly redesigned freeway interchange at 135E (ADTV 86,900) and Ug0 County Rd 14/8 (ADTV 13,900). Highway 61 (ADTV 14,100) has been recently resurfaced and a turn lane has been constructed to access the property. The property is generally flat with very high visibility located on Highway 61. DEVELOPMENT The development criteria are a list of highly desired elements for the redevelopment of CRITERIA the property. A development project that meets the criteria is eligible to purchase the property for $1.00. • A full service restaurant or some form of event center or family entertainment venue, situated so that the customers and public will benefit from views over the lake. Sec- ondary retail, service and housing uses may be considered. • A development and phasing plan is required with all development complete within 3 years. • Quality architecture, building materials, and site design, exceeding requirements f the Downtown Design Guidelines. • Construction of public amenities, including pedestrian connections, a gathering place near Egg Lake, and public parking. i _ d • The City does not require parkland dedication for commercial and industrial development. Al The City does not charge sewer trunk charges for redevelopment sites in downtown. Hugo is a one stop shop for com- mercial and industrial development as it is the Local Governing Unit for Rice Creek Watershed District. • Hugo completed a Business Retention and Expansion (BR&E) Program in 2010 and was awarded an International Award of Excel- lence for the program in 2012. CONTACT CITY OF HUGO us 14669 Fitzgerald Ave N Hugo, MN 55038 RACHELJUBA PLANNER 651-762-6304 rjuba@ci.hugo.mn.us City or ]Hugo www.d.hugonn.us of C��i ty lo 2014 EDA Annual Report I A Year in Review... This Annual Report is designed to showcase many of the commercial and in- dustrial businesses that have located in Hugo and other economic develop- ment during 2014. The goal of the Hugo Economic Development Authority (EDA) is to create a thriving community with diverse jobs and tax base, brought about by specific emphasis on business retention, business expan- sion, and business attraction. Hugo's business community is rapidly expand- ing due to strong residential growth and an attractive business environment. The City had 48 new residential new construction building permits and 100 multifamily units, due to the senior housing project. There were 3 commer- cial and industrial constructions permitted this year. The valuation of the commercial and industrial construction completed in 2014 in the City totaled over $834,000.00. In this Annual Report the EDA highlights development project updates, EDA business activities, and the market study for downtown Hugo. The City of Hugo and the EDA welcome all of the new and growing businesses to Hugo and are excited about the new jobs and services they provide to the community. 2014 EDA Goals... In December of each year, the EDA has a goal setting session to set priorities for the year ahead. These become the outline for what the EDA works on and completes through -out the year. Below are the goals which include action items that the EDA worked on throughout the year. • Downtown Redevelopment • Maintain a Business Friendly Environment • Marketing/ Promotion of the City • Create a 5 -year EDA Plan Christ Lutheran Church Finishes Construction Fall of 2014 marked the completion of the 12,000 square foot church and daycare facili- ty. The property is located west of the Festival Food grocery store off of Rosemary Way. They received approval of the site plan in 2013 and began construction soon after. The church pre- viously was worshiping at Oneka Eleemtry School. The property is approximately 10 acres and two additional phases have been planned to include additional worship space and a school. The first worship service and the daycare center opened in September. Ground Breaking at Keystone Place at LaValle Fields In November, the EDA attended the ground breaking for Keystone Place at LaValle fields. Keystone place is a 100 unit senior housing facility including independent living, assisted living and memory care. The building is a three-story building on a five acre piece of land. There are addi- tional phases of the development that in- clude three market rate apartment buildings with a total on 165 units. There were 2 acres of land dedicated to the City for park dedication purposes with this development. The land will be added to Lions Park and will be included in the Lions Park Master Plan. Finale Avenue between 145th Street and 146th Street will be reconstructed in 2015. The building is currently under con- struction and is planned to be complete the in August of 2015. Keystone Place will be a great addition to the City! Hugo Good Neighbors Food Shelf Starts Construction In the Fall of 2014, the Hugo Good Neighbors Food Shelf received site plan approval for a 1,500 square food building. This is will bring a new building and new location for the Hugo food shelf. The food shelf will be located at 15106 Francesca Avenue in the Peloquin Industrial Park. The food shelf is planning on opening the new location in the Spring. Over the last several months the food shelf has been conduct- ing a capital campaign for donations. There are many ways to volunteer and donate to the food shelf. For more information on donating please visit www.hugofoodshelf.org New Life Church Addition Approved New Life Church located at 6000 148th Street was approved for a 5,000 square foot building addition. The existing building is 6,000 square feet. The addition will allow for a larger worship space and community rooms. The church is growing in membership and it was decided by the congregation that additional space was needed. The church is lo- cated next the Hugo Elementary has a great partnership with them on their community garden program. The ad- dition is expected to be constructed in the Spring and open soon after. O'Reilly Auto Parts Presents Concept In early 2014, O'Reilly Auto Parts presented a concept plan to the EDA for a building at the former Ricci's Property (14777 Forest Blvd). The concept included a 7,500 square foot building and a park- ing lot. The EDA generally liked the plan, but wanted to ensure the plan meet the Downtown Plan and Design Guidelines. The City Council reviewed the concept and provided feedback to O'Reilly on the items that needed work for the project to move forward. Af- ter the concept re- view, O'Reilly Auto Parts purchased the property and submit- ted a site plan appli- cation for approval by the City. • The City does not req development. • The City does not cho downtown. • Our industrial parks Highway 61. • The Bald Eagle Indus for all businesses to • Hugo is a one stop sh Local Governing Unit • Hugo completed a 1 2010 and was award Rosemary Way is Build with New Assessment Policy In 2013, the City Council revised the assessment policy to allow City financing through assessments un- der certain conditions, including projects with commercial and in- dustrial economic development potential. A property owner in the Frenchman Place development re- ceived approval of an assessment agreement to build Rosemary Way in an effort to spur economic de- velopment in the area. This fall the road was constructed. EDA Commissioners Conduct Business Visits Over the 2014 year, with the help of the Hugo Area Business Association (HBA), the EDA has visit- ed businesses within Hugo. The businesses that were visited include Children's Hospital Clinic and HealthPartners Clinic, Micra Manufacturing, and Gallivan Insurance. The EDA Commissioners are there to help the business owners and encourage recommendations on how to keep Hugo a busi- ness friendly community. Update to the Downtown Market Study In addition to marketing the City owned property in downtown, the City updated an existing market study for the downtown area funded by a Metropoli- tan Council Livable Communities Grant. Maxfield Re- search Inc. completed a market study in 2005 and was engaged to update the study in 2013. The scope of the market study included demographics, market conditions, and evaluation of the market potential for commercial uses. The study outlines several find- ings including a mix of development that is viable for downtown and suggestions on vacant parcels of land. The suggested uses include restaurants, offices, spe- cialty stores, housing, and a small hotel. The market study also provided recommendations for a strategic plan to market and development the downtown area. The market study will help guide development in downtown, as well as, provide potential business owners information on the market in Hugo. There is exciting information in the study and the full docu- ment can be found on the City website. Downtown Hugo Market Demand Surnmary 0 Housin Commercial 333 Units 76,000 Sq Ft 35 Acres 8 Acres General Rental Retail 100 Units 47,000 Sq Ft 10 Acres 4 Acres Far -Sale MF Office 75 Units 29,000 Sq Ft 9 Acres 2 Acres Senior Hotel 158 Units 50 Rooms 16 Acres 2 Acres 0