HomeMy WebLinkAbout2015.05.19 EDA Agenda PacketAGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, May 19, 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 April 14, 2015
5:03 pm 4. Discussion on Marketing of City owned Property
5:30 pm 5. Discussion on EDA Meeting Date and Schedule
5:45 pm 6. Update on Downtown Redevelopment
6:00 pm 7. Adjournment
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Please see attached invite.
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, May 19, 2015
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the April 14, 2015, EDA meeting as
presented.
4. DISCUSSION ON MARKETING OF CITY OWNED PROPERTY
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 (SPPA) to see what they would charge to market the City property,
with a report back to the Council.
At its Tuesday, April 14, 2015, meeting staff presented the revised development criteria
and provided an update on the SPPA options and costs to the EDA. The EDA provided
feedback on the development criteria and made a recommendation to the City Council to
allow staff to market the property with monthly updates to the EDA.
At its May 4, 2015, meeting staff presented the marketing brochure and recommendation
from the EDA to allow staff to market the property with monthly updates. The Council
asked for a document outlining the marketing effort of staff and asked to report back to
the City Council in September on the marketing of the property.
Staff completed a basic outline of a marketing plan for the City owned properties in
downtown. Staff recommends that the EDA review the outline and provide feedback to
staff. Staff will provide the EDA with an update on the marketing efforts so far.
5. DISCUSSION ON EDA MEETING DATE AND SCHEDULE
Staff would like to have a discussion on the EDA meeting date and schedule. Please be
ready with days and times you are available to meet for the discussion.
6. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will update the EDA on downtown redevelopment.
MINUTES FOR THE EDA MEETING OF APRIL 14 2415
Commissioner Klein called the meeting to order at 4:58 pm.
PRESENT: Denaway, Gallivan, Houle, Klein, Petty, Puleo
ABSENT: Weidt
STAFF: Bryan Bear, City Administrator
Rachel Juba, Planner
Rachel Leitz, Community Development Intern
APPROVAL OF MINUTES FOR THE EDA MEETING OF FEBRUARY 10 2015
Houle made motion, Gallivan seconded, to approve minutes for the EDA meeting of February 10,
2015.
All Ayes. Motion carried.
DISCUSSION ON MARKETING OF CITY OWNED PROPERTY
Planner, Rachel Juba, reiterated what was discussed at the February 10, 2015 meeting, regarding
marketing of city -owned property. The EDA talked over setting certain development criteria that
a developer would need to meet to be eligible to purchase the property for $1.00. Juba presented
the final criteria to the EDA which include the following:
• 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.
• A development and phasing plan is required with all development complete within 3
years.
• Quality architecture, building materials, and site design, exceeding requirements of the
Downtown Design Guidelines.
• Construction of public amenities, including pedestrian connections, a gathering place
near Egg Lake, and public parking.
Along with the development criteria, Juba presented a flyer Staff put together framing the city -
owned property to developers. This flyer includes property highlights and the development
criteria.
Planner Juba also updated the EDA on the previous City Council meeting, which included a
conversation about how to market the city -owned property. The Council directed staff continue
with the incentive and development criteria and to evaluate the marketing and brokering options
from the St. Paul Port Authority and report back to the Council.
Planner Juba stated that the meeting with the St. Paul Port Authority was very helpful and gave
City Staff many ideas on how to market the property. Adding in new meetings, like attending
MNCAR, EDAM, and other events will be something new, but City Staff are willing to put time
and attention into marketing and selling the property.
The EDA came to the consensus that the city -owned property should be marketed and sold first
through the efforts of City Staff and to re-evaluate if the St. Paul Port Authority should step in
later.
Commissioner Klein asked the EDA how they felt about the development criteria
Commissioner Denaway thought the criteria should be a little more inclusive of other options.
He believed a good addition to the restaurant or entertainment piece would be a "destination
anchor." He believed that it would be up to the developer coming with a proposal to explain
why this project could be considered a destination. Some inclusions in this framing would be
projects Iike a tap room, movie theater, or other destination projects.
Commissioner Klein asked the EDA their thoughts on the flyer.
The EDA all liked the flyer and agreed that it would give enough information for developers to
make a phone call to the City to get more information on the property.
Commissioner Denaway stated that he would like to see some expansion on what has already
been approved or done to this property. This included approved variances, wetland delineations,
and other environmental assessments to make the property more enticing for developers.
Commissioner Klein asked the EDA how they felt about marketing the property for $1.00.
The EDA agreed that marketing the city -owned property for $1.00 would get the word out about
this piece of land and lead to some new ideas and projects for downtown Hugo.
Klein made motion, Petty seconded, to recommend moving forward with the development
criteria and begin marketing this property along with its paired development criteria.
All Ayes. Motion carried.
UPDATE ON THE FUTURE OF THE RAIL LINE
City Administrator, Bryan Bear, started with a recap of the February 10, 2015 meeting. He
reminded the EDA that they wanted to have the City be involved in the rail line topic by facilitating
meetings and by talking with the businesses and railroad in an effort to help develop a strategy.
The EDA agreed that the City needed to be involved and financially supportive of the businesses
in keeping rail service.
City Administrator Bear said that there has been a lot of work done with the rail line issue,
including work with the businesses, railroad, the legislature, and other government programs. He
stated how helpful others have been on helping resolve this issue and that many people are putting
in time and effort to keep the rail in Hugo. He said they are still doing work on this issue and have
found a few potential options in helping to resolve this problem. These programs include a
MNDOT loan program and special legislation. There are hopes that if this goes through that a
more permanent solution can be put together later on.
Commissioner Houle asked if there are any more available lots in the area that could be serviced
by rail.
City Administrator Bear stated that there is a good, viable site south of the pallet company. This
site is 10 acres. The only hold back is the rail would have to cross over another property to provide
rail to this site. Bear also stated that there are companies that currently are connected to the rail,
but that do not use it.
DISCUSSION ON 2014 EDA ANNUAL REPORT
Planner Juba gave an update on the 2015 EDA Annual Report. She stated there are highlights on
Christ Lutheran Church finishing construction, the ground breaking at Keystone Place at LaValle
Fields, construction of Hugo Good Neighbors food shelf, the New Life Church addition, and
O'Reilly Auto Parts presenting their concept plan.
Juba also made note that Rosemary Way was built with a new assessment policy and that the City
updated an existing market study for the downtown area.
APPOINT COMMISSIONER TO GATEWAY SUBCOMMITTEE
Planner Juba stated that the EDA adopted goals for 2015 included marketing/promotion of the
City. Juba explained that the Planning Commission have had projects lead to the discussion of
entry monuments into the City. Also, through the planning of Lions Park, entry monuments into
the Park have been discussed. With so many different projects, Staff thought it would be valuable
to form the gateway subcommittee to plan for a cohesive design within the City. The
subcommittee will discuss gateway element items and make recommendations to the Council.
Klein made motion, Gallivan seconded, to approve appointment of Commissioner Petty for the
gateway subcommittee.
UPDATE ON DOWNTOWN REDEVELOPMENT
Planner, Rachel Juba, already updated the EDA on the City -owned property. She stated that she
is working with O'Reilly Auto Parts' design team in submitting plans for construction of the
building. She expects to see an application for a building permit soon.
ADJOURNMENT
Klein made a motion, seconded by Denaway, to adjourn at 6:31 P.M.
All ayes. Motion carried.
City Owned Property - Marketing Plan
Process/Orga n iza tion
There are several items the City has already completed as a great way to set up the
property for development and marketing to a commercial user. Below are a list of items
completed to date:
✓ Property Control
✓ Proper Zoning
✓ Community Input
✓ Downtown Plan and Design Guidelines
✓ Market Study for Downtown
Marketing Efforts
Over the past few months the EDA has discussed development incentives to help market the
City owned property in downtown Hugo. The City Council and EDA approved the incentive
to market the property for one dollar based on specific development criteria. Staff will
complete the following tasks in an effort to market the City owned property.
✓ Create a summary of financing options
• TIF District
• Incentive based on development criteria
✓ Put together a marketing brochure and marketing flyers
• Site Features
• Development Criteria
• Benefits
• Area Highlights
• Fast Facts
• Area Demographics, etc.
✓ Reach out to brokers
• Join and/or attend events of MNCAR, EDAM, MSCA, etc.
• Showcase on various commercial real estate websites
■ Commercial Search - MNCAR
■ Loopnet - Greater MSP
• Email blast and mailings
• Send mailing to commercial brokers and developers
• Set up meeting with commercial brokers
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