HomeMy WebLinkAbout2015.06.16 EDA Agenda PacketAGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, June 16, 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 May 19, 2015
5:03 pm 4. Update on Washington County's Economic
Development Efforts
• Tax Increment Financing (TIF) Policy
• Tax Abatement Policy
5:30 pm 5. Discussion on Marketing the City Owned Property
5:45 pm 6. Update on Downtown Redevelopment
6:00 pm 7. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, June 16, 2015
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the May 19, 2015, EDA meeting as
presented.
4. UPDATE ON WASHINGTON COUNTY'S ECONOMIC DEVELOPMENT
EFFORTS
In 2014, Washington County approved its Economic Development Strategic Plan. This
includes several strategies and goals with an implementation section outlining action
items. One of the goals is to review and update their existing financial incentives and how
they provide them to commercial/industrial and housing projects. Staff from Washington
County have provided its cities with revisions to the existing TIF and Tax Abatement
polices. The "red -lined" versions of the policies are enclosed in the packet. At the
meeting staff will provide an overview of the revisions. Washington County will be
accepting comments on the revision prior to them being approved by the County Board.
Staff recommends the EDA review the policies and provide comment to staff to forward
to Washington County.
5. DISCUSSION ON MARKETING THE CITY OWNED PROPERTY
Staff will provide an update on the marketing efforts for the City owned property in
downtown.
6. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will provide an update on downtown redevelopment.
MINUTES FOR THE EDA MEETING OF MAY 19 2015
Weidt called the meeting to order at 5:04 pm.
PRESENT: Denaway, Gallivan, Houle, Petty, Puleo, and Weidt
ABSENT: Klein
STAFF: Rachel Juba, Planner
Rachel Leitz, Community Development Intern
APPROVAL OF MINUTES FOR THE EDA MEETING OF APRIL 14, 2015
Puleo made motion, Petty seconded, to approve minutes for the EDA meeting of April 14, 2015.
All Ayes. Motion carried.
DISCUSSION ON MARKETING OF CITY OWNED PROPERTY
Planner Juba updated the EDA from the meeting of April 14, 2015. She reminded the EDA of
their recommendation to the City Council to market the city -owned property with the criteria that
was presented.
Juba stated that on the May 4, 2015 meeting, the City Council approved Staff marketing the city -
owned property and requested a marketing plan and an update in September.
Juba began describing what has been accomplished in marketing the property. First, she wanted
to acknowledge what the City had previously done with the property, which included acquiring
the property, proper zoning, community input with the downtown design guidelines, and an
update to the downtown market study. She stated that staff has created a summary of financing
options, created a marketing brochure and marketing flyers, and has put the property for sale on
MNCAR's website and LoopNet. Juba stated that staff will be attending MN Shopping Center
Association and MNCAR events as well as sending out e-mail blasts to the top brokers in
Minnesota with the property highlights and description.
Gallivan asked if we have received any calls on the property.
Juba stated that these listings were just put up last Thursday, so we have not received any phone
calls from those yet, but still receive some inquiries regarding the property. Juba said she would
expect to receive more phone calls when specific brokers have been reached out to.
Juba concluded by saying that the City Council has requested an update in September and if the
expected progress has not been made, there may be a re-evaluation of the marketing strategy and
firing of a commercial broker.
DISCUSSION ON EDA MEETING DATE AND SCHEDULE
Weidt discussed with the EDA that his work schedule has affected his ability to attend some of the
past meetings and wanted to discuss changing the meeting date so his work schedule would no
longer conflict with attending meetings.
The EDA agreed that the meeting date will be changed to the Yd Tuesday of every month at 5 p.m.
UPDATE ON DOWNTOWN REDEVELOPMENT
Planner Tuba updated the EDA on downtown redevelopment. She stated that O'Reilly Auto Parts
has not pulled a building permit yet, but that she did have a conversation with them about a month
ago regarding some of the conditions of approval. She expects them to pull their permit sometime
this construction season.
F11a [Q 11:�►`A� f �i►(I Il
Houle made a motion, seconded by Gallivan, to adjourn at 5:33 P.M.
All ayes. Motion carried.
Wasbil.LLI'Ston
;0�4 tY
Policy
Property & Taxation
Policy #4004
TAX INCREMENT FINANCING COUNTY COMMENT
ON PROPOSED DISTRICTS
f 4c,The County -Board has established a goal to strengthen the county's role and
increase its support of economic development efforts within Washington County. The
county is committed to investing staff time and financial resources in a planned,
coordinated and strategic manner to promote development that creates new iobs,
retains mobs, increases the county tax base, and enhances the quality of life of countx
residents. To meet these goals, the county board is committed to partnering with its
local communities through the utilization of economic development tools that are
available.
By law, a plan for the creation or modification of tax increment financing districts must
be submitted to the county by the municipality prior to holding a public hearing on the
plan. The County will review and provide comments on proposed tax increment
financing districts as outlined in this _policy_efhe.
Guidelines
The Washington County Board of Commissioners will
provide written comment eppeFtunifyafter receiving notice of a proposed tax increment
financing district as set forth in Minnesota Statute 464469.175, Subd. 2, to provide input
to local jurisd i ction
Prior to submitting these public comments, Washington County
will review all proposals submitted by local jurisdictions aseeFding--teusinp the following
criteria:
1. The fiscal and economic implications of the proposed tax increment
finance district on the county property tax revenues.
2_2-. — --Consistency of the plan with the principles of the county's comprehensive
plan for land use and transportation.
333 -.—The extent to which the proposal adds to the county's net commercial and
industrial tax basei i.e., she ld not be usedto-fasi�ta#- reloGatien of
e Greatkm-of bliight c and itis ns in trrea { ofn--kv.4e e4h 4K �n�U�1~mws-is WR�
Implemented: November 26, 1996 Page 1 of 4
Revised: November 9, 2010
L(
Policy #4004
4. Iia -ea�sefi,� 4 --he
meets the "�'but "'legislation. Washington County door,
f+,Lyn r,ra rF uddiAsthrir--tts for deve.4 6-
04at-VI/$k;}i
within the GOunty without TIF assistaRGAM.
4. &.--The extent to which the proposal redevelops areas that have experienced
blight or contamination as described in M.S. 469.174, Subd. 10, 10a, 16.
5. 6. extent to which the project requires improvements in county
infrastructure and the extent to which the TIF district will pay for the cost of these
improvements as described in M.S. 469.175, Subd. la.
6_7—The extent to which the proposal results in an increase in new
employment opportunities that provide geediiving wages and benefits for
employees.
8.The extent to which a TIF district for housing contributes to the availability of
housing for persons or families of low and moderate income.
7. Washington County supports housing strategies that create scattered site
low income housing options, rather than concentrated development of low
income housing in complexes or "projects".
_
- -
_
8_10.—The impact of the proposed TIF district on other county service costs;
e.g., Sheriff, human services, prosecution services, etc.
9. 44—.TIF proposals must comply with the following administrative requirements
fnr oAgc_nf_administFatkW:
A. Ae6erat£Comply with Minnesota Statutes.
B. Contain an accurate legal description of the district boundaries.
B---le-sp4f)arsels-.
C. Must be complete existing tax parcels of record. Nosplit or
fractional property tax parcels may be included.
Resi)onsibifl
Count By oard
Implemented: November 26, 1996 Page 2 of 4
Revised: November 9, 2010
Revised: Month dd. 2015
Policy #4004
1. Review and approve tax increment financing comment letters.
Administration
PFOcedure
All inARI iWiridiGtiOnS iii-Waasrhri -tOn rnr r ty Will the ROtified in ,wrv'O iig mit
Washington County's intr,nt to re view pFepe sals fr�r th f WX innre�rn ,,,y
•..�a....rr ��aa,. r ...4M1 ray v rr �avr ra a �., eTFt
fin d i ctrir.tc anei n_o+npyo� o�c�.��. will be
l �J to ,.,,.,�
it rrisd i Gtion a�Y,7 " "'IL �7tt1--FJ 1t* t�itT-L�%
Distribute copies of the proposal to each of the reviewing departments and set
forth the time within which the appropriate department should review the
proposal according to the criteria.
2. 4. r'e-eSummarize- ",t...i.,i..*r��°�� �,y„�rr,~,.,Pk� the departments'
input and YA"evelop draft comments to be submitted to the County Board for
review and approval.
33..5. OnGeSubmit approved by the County B aFd, comments will be
subs to the local jurisdiction
proposing the creation of the TIF district.
Transportation and Physical Development
1. Review road and infrastructure implications of tax increment financing districts
Property Records and Taxpayer Services
1. Review tax increment financing district proposal for administrative and statutory
requirements.
Source
County Board approval on November 26, 1996
Policy #1027 renumbered to #4004, March 2005
Implemented: November 26, 1996 Page 3 of 4
Revised: November 9, 2010
Revised: Month dd. 2015
Policy #4004
County Board approval on November 9, 2010
County Board motion Month dd. 2015
Implemented: November 26, 9996 Page 4 of 4
Revised: November 9, 2010
Revised: Month dd. Z01_5
Washington
.County
Po_ licy
Property and Taxation
Economic Development Abatements
(Minnesota Statutes 469.1812 - 469.1815)
Policy #4006
The County Board has established a goal to strengthen the county's role and increase
its support of fester' nta#y sound -economic nr9m4h and development efforts
within ^w .I T"a Washington County BoaYd bac- stated its intere s The count l+
is committed to investing staff time and financial resources in pga gealit�}
transpart-atinn-infrectri iRt, ire to faG litate on^n^rnir+nlanned, �ordlnated and
strategic manner to promote economic developments -one strategy to that creates
new lobs, retains lobs, increases the county tax base, and enhances the quality of life of
the residents of the county. To meet *K�aethese goals, the Gounty Board will revi
Fequests county board is committed to partnering with its local communities through
the utilization of economic development abate ^ntn tools that are available.
Economic abatement applications that are submitted under Minnesota Statutes Chapter
469 upon the GOMpletien and submittal ef an appliGatiGnwill be reviewed and considered
as provided in this policy.
Guidelines
Applicants for an economic abatement shall complete anAbatement
4096-ecxappl_ication for economic development abatement that includes:
1. The RaFneName and contact information of the applicant
2. Description of request
3. T-gel-ist of parcels included in the abatement request
4. TT,"^ h^^i^^iMTO^^ dateBeginning andfor—ending dates of the
abatement
A de6GFintiOn of the benefit to Washington Ge my
5 A desGrinti^nThe dollar amount or applicable formula of the abatement re uest
6. Description of the abatement benefits in compliance with M.S. 469.1813 Subd.1
67. Description of the public interest prepesedserved by the abatement as
/� defined in M.S. 469.1813 Subd.1(2) �..^ ,., j,,. .,,,� ,.., y�..,.c policy
`tnexplanation-'e'ri "^770w th�e-. request 4h" ent nnroFfter4a—feu1�3�YF'�iyis policy
8.A Gone ^,t r'rafla2; efle number
Administrative Requirements
Implemented: July 24, 1990 Page 1 of 5
Revised: November 9, 2010
4
Policy #4006
1. The proposal must compwith Minnesota Statutes.
4-- The proposal must include property identification numbers or legal descriptions and
the abatement area must be made up of existing parcels of record._ Tax parcels
subject to the abatement request must not be in a tax increment financing district.
3. The Property Records and Taxpayer Services Department wo'�,�gat� may
impose a fee commensurate with the applieai;t complexity of the abatement to
covert administrative costs of the program that are anticipated to be incurred over
the life of the abatement. ° signed agFeement mus Such fee as a licable will be
filed wathincluded in the department prior to final county heard aPPF.. Va terms of the
abatement agreement.
A A.,,. .,,...,�.,i....Lt,. ..,.,-.. ..,,.,..h— . �.. a.. 1:.. , ire .....___a _r ice_ _,.._s .,_ _• - - _
...... ..........�........, ..._...��,.. ...... ..... p...... ...r.�......u. .... �� �.�Tliu
d-83UP-lepMeRt Of n hn
Restrictions on Economic Development Abatements
Thein compliance with M.S. 469.1813 Subd.1 (1), the county board must find that
the expected benefits of theagreement to the county are at least equal the Geste-te
the county of the proposed . gFeemeRtcost.
2. Tieln compliance with M.S. 469.1813 Subd.1 (2), the board must find that the
abatement action is in the public interest, because the abatement will meet at least
one of the following criteria:
aA. Increase or preserve tax base:
4II. Provide employment opportunities in the county=
G. -iii. Provide or help acquire or construct public facilities=
d -iv. Help redevelop or renew blighted areas:
e.v. Help provide access to services for county residents,
favi. Finance or provide public infrastructure; or
vii. Phase in a property tax increase of more than 50% not attributable to
improvement of the parcel.
3 ---By statute, abatements may not exceed five (&ten 10) percent of Washington
County's +„re„tn ezf+1".1lntl•7'- he}Gmei#s
approved at no more than 0 9 the ce-unty levy.
Implemented: July 24, 1990 Page 2 of 5
Revised: November 9, 2010
Revised: Month dd_ 2015
Policy #4006
4-3. the pFepert„ is lerated 'n n in,�rernent
r..r.. N1 a,r.... ar .a, ,.,��a.....�,-rp-net_tax ,,-�,�,�
lnnnnlr.r•I distrir.t. gpacit (L.
Economic Development Abatement Cf'steAa ° -Considerations
The county board will consider the following srite�oras part of its review and
approval of abatements granted under this section:
2L. The applioant must demonstrate the pFojeGt is not finanGially feasible "
tax abatemRRt n1 Ihsidy regUe6t9d
31. The consistency of the plan with the principles of the county's
The
plan for land use and transportation.
+
4. I he le Ga men of t with
sewers-.
&-2. The extent to which the project has regional impact.
6-3. The extent to which other taxing jurisdictions participate in the proposed
abatement.
^�
7 --The extent to which the affected i'ity has utilized tax innrr..-�...nt ARanGing iTICI ..
•�vrw rues •..v v111V1 Ia
other e6enemmr. development abatements fGF PF9YOour, development aPA
redevelopment nrojeGtn or extended existing TIC distrirrts
TIIIdV YVIVLJIIIVIIa I✓I L,VVaV, VI VAa
4. T-hP-- R—W- ,r.t to NhiGh the project OF
deGrea ..e..im acts county
costs for road construction, traffic control, law enforcement, human services and
other budgetary items.
9. WhetheF the abatement PFGpeses to redevelop an aFea that haG eXPeFienGed blight
GF Gentamination as described an M.S. 469.1743 subd. 10, 10a, and 16; and/Gf
"brown-';- lds" is defined as abandoned, idled, oF undeFUsed industrial 9F Gommeromal
en,irenrvmental contamination
4-4)-5. Whether the abatement includes transit oriented development along
transit corridors.
46. The extent to which the abatement contributes to the availability of
housing, particularly for persons or families of low and moderate income.
Washington County supports housing strategies that create scattered site low
income housing options, rather than concentrating development of low income
housing in complexes or "projects", or
57. The extent to which the abatement contributes to economic development.
For this purpose, provision of employment opportunities as required by statute
will be defined as providing benefits and livable wage . .,4euk net
Implemented: July 24, 1990 Page 3 of 5
Revised: November 9, 2010
Revised: Month dd. 2015
Policy #4006
Definitions
A. Economic Development Abatement
A reduction of part or all of the county tax on a property as an incentive for
economic development as authorized by Minnesota Statutes 469.1812 to 469.1815.
B. Increase or Preserve Tax Base
The extent to which the proposal adds to the county's net commercial and industrial
tax base.
Responsibility
County Board
1. Hold public hearing of abatement request prior to approval.
2. Review and approve by resolution or deny any economic development
abatement application and abatement agreement.
County Administration
1. Accept applications for economic development abatements under this policy.
2. Ensure the abatements meet the statutory requirements in Chapter 469_
3. Ensure the abatements meet the 4nft auirements outlined in this policy_
Property Records and Taxpayer Services Department
2L.1. Provide the necessary tax and value information in order to estimate the
impact of any approved abatement on the county's tax base and finances
fiscal disparities contribution must be deducted from the tax capacity used to
compute the amount available for purposes of the abatement so that there is no
adverse effect on the existing tax base.
2. Provide draft abatement agreement language.
3. Provide for the on-going administration of the abatement as identified in the
authorizing resolution_
Implemented: July 24, 1990 Page 4 of 5
Revised: November 9, 2010
Revised: Month dd, 2015
Policy #4006
Source
1997 and 2001 Minnesota Legislatures, Chapter 469
County Board motion November 9, 2010
County Board motion Month dd. 2015
Implemented: July 24, 1990 Page 5 of 5
Revised: November 9, 2010
Revised: Month dd. 2015
Train will keep rollin', at ]east for one year - Your local online newsp... http:l www.presspubs.com,citizeri/news/article-7d554a9a-1079-Ile5...
Train will keep rollin', at least for one year
By Debra NeutkenslEditor j Posted: Thursday, June 11, 2015 9:00 am
HUGO — The $145,000 in funding to keep the rail spur afloat squeaked through the Legislature a
day before the session ended last month.
At one point there was no transportation bill, City Administrator Bryan Bear told the City Council
June 1, which would have doomed the tracks operated by Minnesota Commercial Railroad.
But some "miraculous things" happened the weekend before adjournment.
"Last-minute work kept it in a bare -bones transportation bill," Bear said, thanks to some "good work
by our legislators."
That means Hugo's stretch of track into the Bald Eagle Industrial Park will remain in service for the
short term and funds will be used as soon as possible to make emergency repairs to 6.5 miles of
track.
But again, it's only a one-year patch. A permanent solution is still needed.
When asked the reaction of Minnesota Commercial Railroad to the funding, Bear said President
John Gohmann is pleased with efforts the city has made to keep the track going for the few local
businesses that use it.
Schwieters' companies, which hired a consultant to help in the lobbying effort, are relieved and
grateful, Bear added, iterating there is still some level of discomfort not knowing how permanent it
is.
Regarding other legislation, the city administrator feels it unlikely Hugo will get a $1 million piece
of a small bonding bill for its stormwater reuse projects during special session. There is no language
in the draft bills, Bear said.
"Water provisions didn't make it anywhere this session," Bear noted.
Mayor Tom Weidt asked staff to draft a letter thanking area legislators Rep. Linda Runbeck, Rep.
Matt Dean and Sen. Roger Chamberlain for their efforts in getting the transportation bill passed.
"They are good allies who are still fighting for us in a tough session," the mayor said.
Meanwhile, the Beaver Ponds Park stormwater reuse plan will continue as scheduled. The city is at
the point where it can accept bids on the irrigation project, with construction to begin this summer.
The Waters Edge townhome irrigation reuse project will likely start in the fall, with all systems in
service in 2016.
City Engineer Jay Kennedy said they are still hoping to get funding from a Minnesota Resources
grant.
1 of 2 6112.7015 2.54 PM
Train will keep rollin', at least for one year - Your local online newsp... http:/."www.presspubs.com/citizen.'news.'article 7d554a9a-1074-11e5...
Councilman Phil Klein said it was disappointing the Legislature didn't approve the funding, but the
city must continue to be proactive on water issues.
2 of 2 6/12/2015 2:54 PM