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HomeMy WebLinkAbout2014.04.08 EDA Agenda PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, APRIL 8, 2014 5:00 PM 5:00 pm 1. 5:01 pm 2. 5:02 pm 3. 5:03 pm 4. 5:20 pm 5. 5:35 pm 5:45 pm 6:15 pm 6. 7. 8. Call to Order Roll Call Approval of Minutes EDA Meetings of March 11, 2014 Discussion on Metropolitan Council SAC Deferral Program Update on Washington County Economic Development Strategic Plan Update on CDBG Funding for 2014 Update on Realtor Contract Update on Downtown Redevelopment Thursday, May 8, 2014 Joint City Council, Planning Commission, and EDA Workshop o Updated Downtown Market Study o Downtown Plan and Design Guidelines 6:30 pm 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, APRIL 8, 2014 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the March 11, 2014, EDA meetings as presented. 4. DISCUSSION ON METROPOLITAN COUNCIL SAC DEFERRAL PROGRAM The Met Council has a new program to allow deferral of the Met Council SAC (sewer area connection) fees for eligible businesses. Cities can participate by completing an application and entering into an agreement. The program allows deferral of up to 80% of the SAC due for the wastewater demand created by the business, up to a 10 year period. Staff will present the details and examples of the program to the EDA at the meeting. 5. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT STATEGIC PLAN At its March 18, 2014, meeting the Washington County Board of Commissioners reviewed and considered the strategic plan. The Board made a few minor revisions at the meeting. Prior to the Board formally approving the plan, they are asking for comments from communities on the plan. Staff recommends the EDA provide staff with comments on the plan to forward to Washington County. 6. UPDATE ON CDBG FUNDING FOR 2014 The Community Development Block Grant (CDBG) are federal funds that are administered through the Washington County HRA. Staff will provide an update to the EDA on the projects in Hugo that were recommended to be funded in 2014. 7. UPDATE ON REALTOR CONTRACT At its July 15, 2013 meeting, the City Council authorized the EDA to send out RFQ's for commercial realtors to market the City owned properties on Highway 61. In late August the RFQ's were sent out for proposals. The EDA received four proposals and, after evaluation, chose to interview two commercial realtor teams. After conducting the interviews at its February 11, 2014 meeting, the EDA recommended High Pointe Realty and Wakota Commercial Advisors as the realtors to market the City owned property in downtown. The contract with the realtors is on the April 7, 2014, City Council agenda for approval. Staff will provide an update to the EDA at the meeting. 8. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. MINUTES FOR THE EDA MEETING OF MARCH 11, 2014 Weidt called the meeting to order at 5:00 pm. PRESENT: Arcand, Klein, Gallivan, and Puleo ABSENT: Bever, Denaway, and Weidt STAFF: Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF FEBRUARY 11 2014 Arcand made motion, Gallivan seconded, to approve minutes for the EDA meeting of February 11, 2014. All ayes. Motion carried. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT STRATEGIC PLAN Over the past several months Washington County has been working with Springsted Inc., to develop an Economic Development Strategic Plan for the County. Staff was been involved in a workgroup at the County to provide direction and feedback on the plan. The plan is now complete and will be considered at the Washington County Board meeting on March 18, 2014. Staff has included the draft that will be presented to the County for the EDA's review. The EDA agreed that all the goals and objectives were a good start for the County in regards to their role in economic development. KIDZ N' BIZ SPONSORSHIP REQUEST On April 26, 2013, the 10th Annual Kidz n' Biz Fest will be take place at Oneka Elementary School. This annual event is an opportunity for the HBA and Hugo EDA to directly connect with the Hugo families and children in a PTA Carnival atmosphere. This event is expected to attract more than 500 Hugo children and their families and will feature an assortment of games presented by the Hugo businesses with assistance from the White Bear School District. Last year the EDA sponsored the event in the amount of $750. The HBA is asked the EDA to sponsor in that same amount again this year. Gallivan made a motion, seconded by Arcand, to sponsor the event in the amount of $750. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on downtown redevelopment. Staff stated that the City Council will be scheduling a Joint City Council, Planning Commission, and EDA Workshop in April or May to discuss the Updated Downtown Market Study and Downtown Plan and Design Guidelines. ADJOURNMENT Puleo made a motion, seconded by Gallivan, to adjourn at 5:45 P.M. All ayes. Motion carried. N SAC Deferral Program Description and Application To promote business development, Metropolitan Council Environmental Services (MCES) provides communities the option to participate in the SAC Deferral Program to defer some SAC payment obligations. This option allows deferral of up to 80% of SAC due for the wastewater demand created by businesses (communities are required to pass on the benefits of deferred SAC payments to the participating businesses). Businesses allowed to participate are those within an eligible city and where a new SAC determination of 25 or fewer SAC units occurs (total charge before credits). To obtain these deferments, communities must first complete and submit to MCES a signed master SAC Deferral Agreement (Agreement). This Agreement will be sent to interested communities for signature after the information in the following is completed and returned to MCES. 1. Community: 2. Community Address: 3. Contact (Finance Director or CFO): 4. Community -Wide Maximum Percent of SAC that can be Deferred (80% maximum): 5. Community -Wide SAC Deferment Period (years): 6. Payment Month(s): For 4, 5 and 6 above, each participating community has additional implementation options that will apply to all its deferrals: 4. For qualifying SAC liabilities (businesses with total determinations of 25 units or fewer), MCES allows the community to defer up to 80% of SAC due; however, a community can set a maximum that is lower than this (fill in the percentage on line 4 above). Once this community maximum is set, the percentage deferred for each individual site deferral can be lower than this maximum but cannot be higher (e.g., a community chooses a 75% maximum, but a business chooses to pay 50% up front). For each individual deferment, this site-specific percentage must be noted on the MCES SAC -E Form, available at: http://www.metrocouncii.org/Wastewater-Water/Funding- Fi n a n ce/Rates-Cha roes/Sewe r-Ava i la bi l ity-Ch ar&e/SAC- Form s. as Px#Activity 5. Deferment period (term): Choose any whole number up to a maximum of 10 years. This term will apply to all individual deferments from the community. However, note that the Agreement allows any individual deferment to prepay the remaining principal (and interest up to the payoff date) at any time. 6. Timing of payments: MCES prefers annual payments due each year on the anniversary the Agreement was signed, but Communities may request a different payment schedule, as long as it applies to all deferments in the community. Semi-annual payments are also allowed, on any month-end during the year - such a schedule may be preferred that corresponds with local SAC collections, assessments, or other payments from businesses. Communities are strongly encouraged to: Consider which staff will be responsible for authorizing SAC deferrals and what the process will be to implement site specific deferral arrangements as are allowed under the Agreement with MCES; Consider the need for policies or ordinances around your agreements or arrangements with business and property owners (in some cases those parties may have different interests); Consider in advance how to react if a business fails to pay, which will not relieve the community of its deferral payment obligation to MCES, unless the business closes and as described below; and Review the Agreement with involved community staff and legal advisors before signing. Please note that this program is offered only as described in the Agreement; MCES does not anticipate changing it. Once the Agreement is executed, SAC reporting staff in your community must also attach the MCES SAC -E form with monthly SAC reporting for each qualified business for which the community is allowing the deferred SAC payment. Each deferment liability will be effective the first day of the subsequent month (e.g., for an April building permit that is due and typically reported in May, interest will begin accruing June 1). Principal on the deferred amount will be amortized monthly at a fixed interest rate based on MCES' average cost of debt (per statute). MCES' average cost of debt, computed on December 31 each year, will be used as the interest rate for all new deferrals entered into the following calendar year. For example, the average rate was 2.28% on 12/31/12, so all deferrals originating in 2013 uses that rate, and the rate was fixed for the duration of each individual deferral started in 2013. For 2014 the rate for new deferrals is 2.26%. Near the end of January each year, MCES will provide the new interest rate (for deferrals started in the new calendar year) to participating communities. If a participating business completely closes, the community has an option to discontinue making deferral payments to MCES. If this option is chosen, it requires a notification to MCES with a certification of the business closing. In this situation, the site will not be credited with the unpaid wastewater capacity (for future SAC determinations), but will get credit for each SAC unit paid. No payments will be refunded and no net credits will be transferrable off the site (unless and until a redevelopment requires less wastewater capacity, as on any site). Alternatively, for each such business closure, the community has the option of simply finishing the payments to MCES, which will result in full SAC credit for the next use of the site. Late payments on deferrals will incur an additional administrative charge of 2% per month plus the maximum interest allowed by law. SAC Deferral Example #1: 1. Community signs SAC Deferral Agreement in October 2013, establishing basic deferral terms including maximum amount deferred (e.g., 80%), standard community deferral length (e.g., 5 years), and the payment timing requested (e.g., billing only on anniversary of Agreement). 2. An 8 -SAC unit business is permitted February 2014. On the SAC Activity Report for February, the community chooses a deferral and: a) Pays 20% of the SAC for the site = 8 X 20% =1.60 X $2485/unit [2014 SAC rate] =$3976 2 b) Attaches SAC -E form that details the information for this individual deferral: i. Property Address =123 45th Street, City of XYZ ii. Business Name = Acme Genetics, Ltd. iii. Permit Issued Date = 2/15/14 iv. Start of Loan Date = 4/1/14 (1St day of month after SAC report is due) v. Deferred amount= 8 SAC units X 80% = 6.40 X $2485/unit = $15,904 3. MCES sends an invoice detailing the amount due on the SAC deferral(s) in October 2014. In this single deferral example: a) $15,904 was spread over 5 years with monthly amortization at 2.26% interest (the 2014 interest rate) = $280.57/month. b) Payment on this loan in year 1= $280.57 X 7 months [April through October) = $1,963.99 c) Invoice is sent out annually (aggregating all community deferrals). d) Payment is due in 30 days. In this example, unless the deferral is prepaid, the community will pay for 12 months in 2015, 2016, 2017 and 2018, and only 5 months on the last year's invoice (2019). At that point the full 8 SAC is paid and creditable to future use. SAC Deferral Example #2: Same circumstances as above but the business closes in 2016 after community made 2 payments (for 7 months in 2014 and 12 months in 2015). In June 2016, community notifies MCES that the business closed. Community has an option: 1. Continue remitting the remainder of the SAC deferral payments as scheduled. The full 8 SAC units will be credited to future use on the site as all units are paid for. Of course, if the new use is different, a new SAC determination must be made, and the community will owe SAC for any incremental capacity demand. —OR - 2. Discontinue accruing liability. The community still needs to pay for the 5 months that wastewater demand was needed in 2016, but has no obligation for the rest of the scheduled payments. Only what was paid is creditable for future use (24 months of 60 is paid = 40% X 6.4 SAC units = 2.56 credits available for the site, in addition to 1.60 units from the original down payment). If you wish to participate in the deferral program and are ready for the master SAC Deferral Agreement, fill out the boxes at the top of this application and return it to Dan Schueller, MCES, 390 North Robert Street, St. Paul, MN 55101 or dan.schueller@metc.state.mn.us. If you have additional question you can call him at 651.602.1624. For questions about the SAC program in general, please call Jessica Nye at 651.602.1378. For SAC determinations, please call Karon Cappaert at 651.602.1118. 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Rachel Juba From: Jane Harper <Jane.Harper@co.washington.mn.us> Sent: Wednesday, March 19, 2014 10:38 AM To: (dparr@cottage-grove.org); Uschmitz@ci.woodbury.mn.us); Rachel Juba; Aaron Parrish; Barbara Dacy; Bill Turnblad(bturnblad@ci.stillwater.mn.us); Bryan Bear; Craig Waldron; Dave Schaps; Deb Hill; Doug Borglund; Dwight Picha (dpicha@ci.woodbury.mn.us); Jane Harper, Kevin Corbid; Kristina Handt; Kyle Klatt; Logan Martin; Mace Wescott; Molly O'Rourke; Randy Kopesky; Renee Heim; Ryan Schroeder (rsc hroeder@ cottage- grove.org); Scott Neilson Subject: Ec Dev Strategic Plan - Final Attachments: 2014-3-18 Final Washington County ED Strategic Plan.pdf Hello All, Yesterday we presented the final plan to the County Board. The Board was very pleased with the product and extended their thanks and appreciation to the Work Group for its work on the plan. This final version of the plan incorporates three changes they requested. Those changes are: #3 on page 1: Incorporate economic development impacts and considerations into county decision making. Third bullet on page 5: Support efforts to ensure a highly skilled workforce and adequate workforce housing Work Plan item 8.4 on page 9: Work with area chambers of commerce to determine how the county can help to grow tourism as an economic driver. The County Board asked staff to send the plan to communities and others who participated in the Community Engagement process for review and comment before they formally adopt it. I want to personally thank you for your contributions to this planning process and to your involvement with the Economic Development Work Group over the past 2 years. I feel very confident that the County has a good road map for moving forward and a great work group to make things happen. I will miss working with you to move this plan to action. I leave the work in Kevin's very capable hands. He will be assisted in the short run by Amanda Hollis, another planner in the Office of Administration. Best Wishes, JcuLe" Jane Harper Office of Administration 14949 62nd Street North Stillwater, MN 55082-0006 651-430-6011 Washington Washington County Board of Commissioners Economic Development Strategic Plan March 18, 2014 Economic Development: A Washington County Strategic Initiative �. Introduction What is Economic Development? Economic development has different meanings to different people. The County Board believes the International Economic Development Council (IEDC) definition is appropriate for Washington County's unique mix of social, geographic, political and economic qualities: No single definition incorporates all of the different strands of economic development. Typically economic development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of the quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well-being of a community. The main goal of economic development is to improve the economic well-being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life. As there is no single definition for economic development, there is no single strategy, policy or program for achieving successful economic development in Washington County. Thus the plan laid out in this document is developed from a comprehensive and broad-based perspective. Through implementation of this strategic plan the County anticipates achieving the following short-term goals over the next 1-2 years: 1. Establish a single point of contact for economic development within the County government. 2. Update County tax -increment financing and tax abatement policies. 3. Incorporate economic development impacts and considerations into county decision snaking. 4. Expand County role in marketing the County. 5. Establish working relationships with state, regional, and local entities working on business retention and growth within the County. b. Convene practitioners and other stakeholders to address barriers and opportunities and to encourage free flowing communication. 7. Assert a stronger voice at the legislature in advocating for sound economic policies and authorities. This document presents the draft of an Economic Development Strategic Plan for Washington County, Minnesota. The Strategic Plan consists of the following nine sections. Section I Introduction Section II Planning Process Section III Washington County's Economy Section IV County Mission, Vision and Goals Section V Policy and Principles Section VI Strategies, Outcomes, and Structure Section VII Implementation Section VIII Appendices The Washington County Board engaged Springsted, Incorporated to prepare a Washington County Economic Development Strategic Plan. The plan focused on the following two elements: 1) Recommend an appropriate expanded role for Washington County including recommending a viable structure for carrying out that role; and 2) Develop high-level strategies for encouraging economic development within Washington County. The County spent considerable time this past year engaged in discussing its role in economic development. The County Board conducted three formal work sessions to discuss ideas, options and opportunities. Feedback was provided to the staff and consulting team to move forward with developing a plan based on the direction from the County Board. Economic Development Work Group An Economic Development Work Group supported the planning process by bringing a wealth of knowledge and experience to the process and providing important local perspectives to the discussion. The Work Group is comprised of economic development practitioners in Washington County from municipal governments and public agency partners such as the Housing and Redevelopment Authority. Members of the Work Group represented a cross section of roles and responsibilities including a mayor, city administrators, assistant city administrators, planners, and community development directors. The economic development study pursued two simultaneous tracks: a community engagement process and data analysis initiative. A brief summary of each follows: Data Collection Springsted retained the services of the University of Minnesota Extension Office to collect, organize and analyze Washington County economic data to develop an understanding of the current status of the economy in Washington County. Two formal presentations were held on the 2 data: Washington County -- Economic Overview (September 2013) and Washington County's Economy and Selecting Industries for Further Analysis (November 2013). Copies of both presentations are on file in the County's Office of Administration. Five of the most essential findings that might have an immediate policy implication are identified in Section Ill. Community Engagement The County Board directed that a broad reaching community engagement process be undertaken, including: 1) Interviews and listening sessions with elected officials and other key stakeholders within the community of interest; 2) Gather input from every city; 3) Presentations/discussions to organized- groups such as Economic Development Authorities, Chambers, Business Development Commission's; and 4) Facilitated sessions with key stakeholders within a community of interest to identify issues and create the strategic plan. A summary of the stakeholder input is included in the Appendix. The data presented by the Minnesota Extension Office offered a clear picture of the Washington County economic conditions. A summary review of economic data for Washington County finds that the County's economy is healthy. • Washington County is a competitive, job creating economy. The county has experienced steady and strong growth in the number of jobs and weathered the recession well. Washington County had 80% employment growth from 1990-2012 adding 32,000 new jobs. The number of jobs in 2012 nearly rebounded to pre -recession levels of 74,000 total jobs. • Washington County competes very well within the region and the Twin Cities economy. Businesses in Washington County added 24,000 more jobs than would have been expected given national and industry trends. • Washington County is especially competitive and has significantly more jobs in comparison to neighboring counties in Wisconsin. Washington County's employment growth rate exceeded or was on par with neighboring counties in Wisconsin. Washington County maintains a competitive share of employment growth compared to St. Croix County except for manufacturing where St. Croix County has a modest growth advantage. • Washington County is a service -based economy. Washington County's top five largest sectors of employment are Trade (16%): Professional and Business Services (16%); Education and Health Services (14%); Leisure and Hospitality (12%); and Government (13%). Wages at jobs in Washington County are low, incomes primarily from jobs outside the County are high, and housing is expensive; these trends make affordable work force housing an issue for county leaders. 3 M$t: Missi and Goal: The economic development philosophy, policies and plan are derived from the County's overall Mission, Vision and Goals. Mission Providing quality services through responsible leadership, innovation, and the cooperation of dedicated people. Vision A great place to live, work and play ... today and tomorrow. Goals Washington County has four principle goals: • To promote the health, safety, and quality of life of citizens • To provide accessible, high-quality services in a timely and respectful manner • To address today's needs while proactively planning for the future • To maintain public trust through responsible use of public resources, accountability, and openness of government The economic development strategic plan is but one supporting activity which allows the County Board and staff, cities and public agencies, and the business community to pursue the mission, achieve the vision and accomplish the goals. Economic Development Role The following statement from Washington County's 2030 Comprehensive Plan defines the county's current role in economic development: Washington County's core functions foster an environment where commerce can develop and thrive. The County contributes to a robust business climate by providing well-planned, essential infrastructure; maintaining a low tax rate; and assisting in creating an ample pool of skilled employees. The county strives to maintain the right blend of county services to support a vibrant business sector, be it transportation and transit services, public safety, health and human services, corrections services, workforce housing, or other public sen -ices. The county is committed to stewardship of cultural and natural amenities such as land and water resources, parks and open spaces, and libraries which contribute to a high quality of life for business owners and their employees and families. The county's efforts in workforce development provide skilled employees that enable companies to be competitive and successful in the local, regional and global economies. 4 The foundation of this Strategic Plan is the policy and guiding principles that drive the strategies and goals of the County. The following policy statement and six guiding principles define the County's economic development planning efforts. These guiding principles are relevant for the present economic environment and are subject to review and change on a periodic basis. Economic Development Policy Statement It is the policy of the Washington County Board of Commissioners to strengthen the County's role and increase its support of economic development in the County. The County will invest staff time and financial resources in a planned, coordinated and strategic manner and will engage in a collaborative and holistic approach to economic development. The County's policies and actions will be guided by six principles. Economic Development Guiding Principles The following principles are not in rank order of importance. • The private sector is the lead that drives the economy o The County will work in partnership with the private sector The County will not duplicate or replace the work of cities and other public agencies o The County will work in collaboration with cities and public agencies and will provide leadership where the County can make the most difference * The County supports a strong collaborative approach to economic development o No matter the location, economic development is a benefit to the entire county o Support efforts to ensure a highly skilled workforce and adequate workforce housing Business attraction and business retention are essential policy objectives o A balanced approach to pursue each of the two policy areas is required • The diversity of the County requires an adaptable and open-minded approach o The distinctive qualities of the County require flexibility • A deliberate, purposeful and strategic plan is required o The County will take careful and prudent risks to pursue its objectives guided by clear outcomes, and consensus -based policies VL StraWoes,utcr m6s a nd Structil Economic Development Outcomes The County Board has seven outcomes for this Strategic Plan: 1. Retain a premier quality of life for all of residents 2. Create and sustain living wage jobs across all employment sectors 3. Expand the County's property tax base 4. Be a value-added partner to other public and private agencies 5. Allocate appropriate staff time and resources 6. Affect public policy issues that impact the County's economy 7. Expand the County's knowledge and experience in economic development 5 i 4 The Strategic Plan provides a realistic and pia d&i ' road map for the County. It guides the county leaders and allows them to focus on the most important economic development priorities. Furthermore it directs staff time and financial commitments to those activities that support the County's mission, vision, and goals. Ultimately when the plan is underway and the County has a solid foundation, it will improve accountability and the capacity to measure performance and outcomes. Economic Development Strategies Strategies are essential public policy priorities that precede goals and action steps. Typically they are long-term in nature and are fairly constant in their intent and pursuit. The optimal way to introduce strategies is through the eight functional economic development categories that emerged from the stakeholder input process. The eight categories reflect the marketplace of opportunity for the County and general consensus is to use these designations as the foundation for the strategies. The strategies are not ranked in order of importance. Each strategy is followed by one to four goals. Goals are a measurable and desired activity, project or purpose that requires resources (time and/or money). Action steps are individual steps and activities necessary to implement a goal, accomplish a strategy, operationalize the mission and fulfill the vision. Specific action steps are continuously evolving and changing as they are completed. The role of local government in economic development must be viewed in both a short and long term perspective. In this, Washington County's first economic development strategic plan, the focus is on short-term actions that support and sustain a long-term investment. As the County's role becomes more secure and established the goals and actions steps will evolve and change. The goals are focused on a one -three year timeframe. This does not prohibit or discourage the County from making changes and adjustments throughout the year. 1. Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. 2. Washington County recognizes that economic development requires a strong infrastructure foundation built on multi -modal transportation networks and access to high-speed broad band networks. 3. Washington County uses economic development financial incentives in a fiscally prudent manner. 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive process. 5. Washington County understands that other county -based services impact economic development goals and economic growth. 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county -wide economic development goals. I For additional information and details on each strategy please read the December 12, 2013 and January 28, 2014 County Board documents. 6 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. 8. Washington County partners with other public and private agencies to pursue economic development goals. There are 21 identifiable goals. The Goals are not listed in any priority order or ranking. Priorities are established by the letter assigned to each. The ranking is as follows; Letter A One to Six Months Letter B Six to Eighteen Months Letter C Eighteen Months and Longer 1. Washington County is responsible for many core functions that contribute to a premier quality of life that is important to business growth; economic development resources and investments will advance and support the high standard of living in the County. Work plan... I - 1. Explore public-private partnerships to ensure access to high-speed broad , 1. Designate a county staff member to be the point of contact for economic acquisition (e.g. right-of-way) needs for economic development projects. development and implementation of the strategic plan. 3. Continue to pursue multi -modal transportation and transit opportunities A 2. Evaluate how economic development factors into the County's 2040 A Comprehensive Plan update. C 3. Establish and monitor key economic indicators and benchmarks for the county and the quality -of -life indicators that are most important from a A business perspective. Include in the county's annual performance measurement report. 2. Washington County recognizes that economic development requires a strong infrastructure foundation built on multi -modal transportation networks and access to high-speed broad band networks. Work plan... 7 1. Explore public-private partnerships to ensure access to high-speed broad band fiber networks throughout the county. C 2. Consider creating a pool of financial resources for unanticipated land acquisition (e.g. right-of-way) needs for economic development projects. C 3. Continue to pursue multi -modal transportation and transit opportunities that will stimulate economic growth in the county. A 7 3. Washington County uses erdnomic development financial incentives in a fiscally prudent manner. Work plan... 1. Review and update the existing financial incentive policies: tax increment financing and tax abatement. � 2. Explore the creation of a revolving loan program to support business development. A 3. Explore using federal Community Development 4. Washington County realizes that success in economic development is only achieved through a collaborative and inclusive environment. Work plan... C support the County's economic development philosophy and principles. 2. Identify present economic development activities of the Housing and Redevelopment Authority (HRA) and determine what other activities B Block Grant monies for economic development activities. g issues of mutual concern and to foster a unified county -wide economic �, development approach. 4. Develop a concept paper on the formation of a Community Development Agency (CDA) and present to the County Board. 5. Washington County understands that other county -based services impact economic development goals and economic growth. Work plan... 1. Review transportation related policies and standards for compatibility and flexibility with economic development goals. A 2. Where applicable, consider economic development impacts in other county -based plans, programs, and services. B 6. Washington County provides leadership and initiative to shape regional and state-wide policies to support county -wide economic development goals. Work plan... 7.17neludeconomic development positions in the County's legislative B 1. Explore the value and purpose of a public/private partnership such as an Economic Development Corporation and how it may complement and C support the County's economic development philosophy and principles. 2. Identify present economic development activities of the Housing and Redevelopment Authority (HRA) and determine what other activities B Block Grant monies for economic development activities. g 1. Explore the value and purpose of a public/private partnership such as an Economic Development Corporation and how it may complement and C support the County's economic development philosophy and principles. 2. Identify present economic development activities of the Housing and Redevelopment Authority (HRA) and determine what other activities B could be directed to the HRA consistent with their mission. 3. Continue to convene the Economic Development Work Group to address issues of mutual concern and to foster a unified county -wide economic �, development approach. 4. Develop a concept paper on the formation of a Community Development Agency (CDA) and present to the County Board. B 7. Washington County supports the value and importance of economic development marketing and branding for existing business retention and growth and new business development. Work plan... M1 1Ummw 1, Partner with the Workforce Development Board and stathto identify and 1. Assess how the County can participate in marketing and branding to address workforce training and workforce housing needs. C support the existing efforts underway in other public and private C agencies. C 2. Build relationships with existing organizations that focus on job retention and identify how the County can support those efforts. C 8. Washington County partners with other public/private agencies to pursue economic development goals. Work plan... Economic Development Structure One of the primary goals of this Strategic Plan is to answer the question of what structure best suits the role Washington County should to take. The Work Group and county staff conclude that this will be a process that takes time to mature. Throughout the process two concepts were identified that are important components of the planning process: less formal structure and formai structure. Information on each follows. Less Formal Structure (Public Private Partnership) These models are essentially Economic Development Commissions (EDC) supported by membership dues from private companies and local units of government. They are typically convened and staffed by the interested municipal entity and play primarily an advisory role and advocate for development in the community. Some communities, such as Wright County, assign the entity to evaluate and underwrite their loan programs, but the County Board retains the ultimate authority to approve the allocation of those financial resources. In addition to the private sector business representation, these boards can be comprised of representatives of smaller communities. This allows for these public private entities to pool resources and provide economic development technical assistance to those communities that don't otherwise have the individual capacity. Large communities with more staff and financial �7 1, Partner with the Workforce Development Board and stathto identify and address workforce training and workforce housing needs. C 2. Identify specific economic development training and assistance needs of Washington County communities and determine how best to meet those C needs. 3. Continue the county's policy and funding role in regional economic development activities such as Greater MSP and East Metro Strong, A 4. Work with area chambers of commerce to determine how the county can B help to grow tourism as an economic driver. Economic Development Structure One of the primary goals of this Strategic Plan is to answer the question of what structure best suits the role Washington County should to take. The Work Group and county staff conclude that this will be a process that takes time to mature. Throughout the process two concepts were identified that are important components of the planning process: less formal structure and formai structure. Information on each follows. Less Formal Structure (Public Private Partnership) These models are essentially Economic Development Commissions (EDC) supported by membership dues from private companies and local units of government. They are typically convened and staffed by the interested municipal entity and play primarily an advisory role and advocate for development in the community. Some communities, such as Wright County, assign the entity to evaluate and underwrite their loan programs, but the County Board retains the ultimate authority to approve the allocation of those financial resources. In addition to the private sector business representation, these boards can be comprised of representatives of smaller communities. This allows for these public private entities to pool resources and provide economic development technical assistance to those communities that don't otherwise have the individual capacity. Large communities with more staff and financial �7 capacity use these types of structures more as an advisory board representing private sector business interests. In the case of Washington County, Woodbury and Oakdale use this structure to help develop Economic Development Strategic Plans. Since the primary benefit of this structure is to encourage private sector involvement through board participation and possibly financial support, the question is how could this type of structure benefit Washington County and what are the downsides. Research shows that often counties in Minnesota start to play a role in economic development with this type of EDC structure as a first step. Counties can provide financial resources based on tasks assigned to that entity while retaining final approval authority for specific projects and programs. These structures work well as marketing champions for county wide growth and should not be considered mutually exclusive of a more formal structured approach. The possible downside risk of this approach in Washington County is the current private business community participants, particularly the Oakdale and Woodbury EDC's, could perceive that this is duplicative. In addition, the more this public private model is tasked with direct economic development activities, such as loan programs and technical assistance, the more there would need to be careful consideration given to avoiding duplicating those same efforts currently undertaken by the Iarger communities and potentially the County HRA. Formal Structure (County Community Development Authority) If the County Board chooses a more formal and active role in economic development, one logical path is to seek any necessary special legislation to enhance the capabilities of the Washington County HRA by essentially adding economic development authority powers. Other jurisdictions have successfully completed similar legislative action and established themselves as "community development agencies" (Dakota, Scott, and Carver), that were originally constituted as housing authorities. Any programming would require careful consideration to avoid duplicating efforts currently undertaken by cities, but obtaining legal authority provides the county access to significant authority and financial resources to encourage economic development. Many of the technical skill sets required for implementing economic development strategies exist within the County HRA. (They also exist in many of the larger communities, but are currently limited to those municipal boundaries.) To be responsive to city needs and county board direction, the HRA could certainly undertake and implement programs (i.e. partner with MCCD for example) as soon as possible as long as those efforts are consistent m ith current authority, while pursuing the necessary legislative amendment process. A possible downside of the CDA model is the risk of diluting private business sector interests on the board. However, the CDA model can have a board comprised entirely of county elected officials or a blended combination of elected and appointed members. As resource commitments increase with a more active and formal participation in economic development activities, county elected officials may choose to have a more direct involvement on the board. They establish advisory committees organized according to the issues they intend to address. If the Washington County Board chooses to pursue a more formal CDA model and wishes to have more direct involvement with county wide housing and economic development initiatives, the structure could accommodate that desire. One of the principles promoted during this process is for the County to be purposeful and deliberate. If the formal CDA model becomes the objective, it will take time and careful collaboration to complete. 10 11 pfisdbleEconomic 03 1 Descriplion Private , A corporation formed to develop and sell industrial land Low County control Partnership or and/or provide financing for business development in the mostly all private Non-Profit community. Shares are sold or funds may be raised in other ways. Or could be a 501(c) (4) or (b) organization whose purpose is to promote community economic development. The membership is usually made up of business. Can have paid or volunteer staff. Economic An advisory board, appointed by the Washington County County appoints Development Board. It has limited or no decision-making authority and Commissioners Commission usually serves as a sounding board or as a first point-of- (EDC) contact for the County for development projects. It is often responsible for drafting strategies and policies for ratification and implementation by the County. The commission may be active in implementation of local plans on a volunteer basis. Work can be coordinated by county staff. Economic EDAs were created to facilitate a well-rounded development County appoints Development program by taking advantage of some of the Port Authority Commissioners — if a Authority powers and all of the HRA powers. By combining and 5 member board, at (EDA) utilizing HRA, EDA and County powers, community least 2 County leaders are able to create flexible business assistance and Commissioners must development programs. EDAs for example, are allowed, to serve buy and sell property; make loans and grants to businesses; provide guarantees or other credit enhancements; and to sell bonds. Although Economic Development Authorities were originally designed to meet the needs of cities, special legislation has been granted to several counties to establish economic development organizations, in addition to housing authority powers, or Community Development Authority's. The EDA may employ an executive director and other staff. Housing An HRA is a legal entity created by a City Council, County County appoints Redevelopment or Area to provide a sufficient supply of adequate housing Commissioners; HUD Authority for low-to-moderate income families and individuals. They requires a (HRA) / are also charged with clearing and redeveloping blighted Commissioner to be a Community areas throughout the community. The board may be a participant in the Development citizen's panel, the County Board or a combination thereof. Housing Choice Agency HRAs also have limited powers that may be used for Voucher Program or business development. Special legislation has been used to Public Housing add economic development powers to become a community Program where the development agency (CDA). May require additional staff at HRA acts as Public the HRA. Housing Authority. 11 Strategic plans are only as effe� as the commitment made by all parties to follow-through. Washington County has invested a large amount of time and effort in the assessment, development and adoption of the Economic Development Strategic Plan, The Plan is comprehensive yet realistic. The plan provides the County with four distinct benefits: • A decision-making tool to assist in making policy decisions • A leadership tool to assist in identifying and establishing goals • A management tool to assist in operationalizing plans and deterinining accountabilities • A communication tool to inform partners and stakeholders about the plans To move the plan into action the County Board will: • Be the champion , • Identify expectations • Allocate resources and time • Commit to implementation • Determine levels of accountability • Periodically review the Plan In applying the guiding principle of working in partnership with others the County will seek the input and perspectives of a broad group of stakeholders. The diverse group of stakeholders that contribute to economic development within the County includes large and small businesses, economic development organizations, educational institutions, chambers of commerce, state and regional agencies, and local communities. The County will engage these stakeholders in two primary ways. 1. The County will continue to convene the Economic Development Work Group, a group of public sector stakeholders. The Work Group has successfully established an identity and good working relationships through the strategic planning process. Continuing to engage the Work Group during plan implementation will be critical to the County achieving its economic development goals, avoid duplication of effort, and to understanding how the County can add value to the work of others. 2. The County will periodically convene a group of private sector stakeholders to inform the work of the County and its public sector partners. This group will help County staff and the Work Group to understand the interests and needs of the business community and to identify critical issues affecting businesses and the economy of the County. 12 La Vill, Appendices of The following information is designed to summarize for the County Board the five most important themes and information learned from the community engagement process. This information is meant to inform, update and educate the Board on the insights of key stakeholders in Washington County. This summary does not attempt nor is it designed to provide every particular insight or opinion shared during the community engagement process. The information is organized into five overall themes. Expand the County's Involvement in Economic Development Washington County's expanded involvement in economic development is encouraged and highly anticipated. The stakeholders believe that Washington County should expand its role in supporting the economic development efforts of the cities. There are some lingering doubts about the County's historical role and past actions, but this perception can be overcome. The County's Diverse Qualities Requires Thoughtful Planning Washington County's stakeholders recognize that the county is very diverse geographically, politically and organizationally. It is well noted that the County Board is challenged to find an equitable and/or a simple economic development plan that can address everyone's interests. Although optimistic and certainly excited about an expanded role for Washington County, the stakeholders are realistic and do not anticipate or expect miracles. This is best stated by Craig Waldron, City Administrator in Oakdale who is on the record noting that, he advises the County to be deliberate and methodical in its approach, or as he states, "walk before you run". Stakeholders Have Distinctive Opinions Washington County's specific role in economic development — and ultimately its strategic plan - requires more deliberate discussion. Testimony at the community engagement meetings was generally more philosophical and strategic. Although opinions exist on matters of policy, priority and structure, we do not offer any trend, indicator or community reflection that leads or points the County Board to any easy answers. Even at the municipal level the testimony of cities differs largely along the lines of cities with experienced personnel and cities that do not have a strong economic development support base within the staff. Business interests also varied in their testimony and input. No Consensus Exists on a Clear Organizational Model Washington County has already identified five different organizational models to deliver economic development programs and services. Throughout our testimony we heard various opinions about what is the best way for the County to organize. We offer to you that no clear consensus -based organizational model came forward from our community engagement process. We discuss structure and roles in greater depth in Section V. 13 �1 Summary of CRY Feedback: Econoniic Development Su -v �, A survey was sent to each City and the HRA at the beginning of the study. The questions were designed to obtain preliminary input into the economic development study. This information was summarized and shared with the County Board in September of 2013. I. Specific Priorities Please identify the three most significant economic development priorities of your City or organization over the next five years. • Programs administered by HRA at an economy of scale that helps cities and townships • Housing construction • Promotion — marketing for new and existing businesses • Redevelopment -- reinvestment in existing properties • Investment in infrastructure • Development (new) • Jobs and diversity of employment Linkage between living and working within the county • Coordination of efforts • Business attraction — financial incentives H. County -wide Factors Please identify the top three factors that are impacting in any way (driving or impeding) economic growth and development within Washington County. Driving ■ Available land • Schools New bridge in Stillwater • Natural amenities • Strength of existing economy • County changing to a "pro ED" place Impeding • Lack of affordable housing • Lack of transit alternatives • Lack of coordinated strategy Lack of coordinated infrastructure strategy • County's historical TIF policy (differing perspectives) d Infrastructure flexibility (regulatory restraint) • Shortage of niche financing programs (grants) • Still a slow recovery ■ Digital divide in parts of county • No policy on tax abatement • No economic development staff • The County is diverse — how can we effectively promote the county as a whole when areas are distinct and different (rural -- low taxes) 14 III. Stakeholder Input Please identify who you want in,Uin the stakeholder input steps of the planning process. Your list could be a specific name(s) or a reference to a group or association. • Conunercial real estate community • Greater MSP • All levels of local government (schools and watershed districts too) * Variety of market rate and affordable housing developers • Sample of individuals that work in the county but do not live in the county • Communities of color, disabled, and low income population • Two members of city staff and the Mayor • Sample of elected officials • County Board and staff • City staff • Economic Development Authorities • Local business associations • Chamber of Commerce IV. Tools Please identify up to three current tools you are using to support or augment your economic development efforts? • Greater MSP (leads and promotion) • HRA levy • Local income housing tax credit program and Minnesota Housing programs Met Council LCDA program for land acquisition and pollution clean-up resources • TIF (redevelopment and housing) • Tax abatement Woodbury Growth fund (revolving low interest loan) • SEED fund • Fast track process and one stop shop • Shovel ready business park • Acquisition of property V. Distinctiveness Please identify one or two considerations that you believe are unique or distinct to Washington County that can be a positive asset to economic development within the county. • Accessibility and location with easy access to MSP, airport and Wisconsin • Land costs (may be higher), but tax environment is competitive Human capital and workforce • Positive relationship with the county — trust level is in place to accomplish projects • Significant natural areas for recreation and tourism Significant land supply within distinct communities • Rural and urban character Fast growing cities VI. Best Practices Please identify one or two economic development best practices that our process should identify and possibly explore. • Level of investment and involvement with Greater MSP 15 Open for business and gardening programs • Evaluate need for a countywide EDA (role, relationship; with cities?) • Incentives, funding, gap financing program ■ County infrastructure assistance (or policy modification) • Tax abatement policy and strategy a Explore programs and practices that make the County a better option than Wisconsin • County wide marketing campaign V11. Outcomes Please identify two outcomes you want to achieve as a result of this economic development initiative. Clarity on roles and responsibilities • Consensus on the best program/place to start • Supportive of local economic development — or not disruptive or work against • Recognize and capitalize on the diversity of the cities • Develop one or two useful tools • Greater county role in bringing resources and attention to broadband gaps • Sustained or expanded commitment to infrastructure • Actual project goals (roadways, countywide fiber optics, incentives) • Marketing plan for business attraction 16 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) & HOME INVESTMENT PARTNERSHIP (HOME) PROGRAMS Introduction and Summary The Community Development Block Grant (CDBG) and Home Investment Partnership Program (HOME) are federal funds available through the Department of Housing and Urban Development (HUD) which are granted to units of local government to implement programs that assist people of low to moderate income. What are the HOME & CDBG Programs? HOME was created by the National Affordable Housing Act of 1990 and is the largest federal block grant available to communities to create affordable housing. The intent of the program is to: • Increase the supply of decent affordable housing to low and very low income households • Expand the capacity of nonprofit housing providers • Strengthen the ability of state and local governments to provide housing • Leverage non-federal sources of funds for affordable housing CDBG, authorized under the Title I of the Housing and Community Development Act of 1974, is an annual grant to localities used to assist the development of viable communities. To reach this goal, the program supports low to moderate income persons and households by providing: • Decent housing • A suitable living environment • Expanded economic opportunities All CDBG activities must meet one of three national objectives 1) benefit low or moderate income persons, 2) eliminate slum and blight, and 3) meet an urgent need (such as those caused by natural disasters). To date, Washington County's CDBG funds have focused on the first objective, benefit to low or moderate income persons. What are some examples of HOME and CDBG activities? HOME CDBG Homeowner Rehabilitation Homeownership Assistance Public Facilities Homebuyer Activities Rental Rehabilitation Property acquisition Rental Housing Lead-based Paint Testing & Abatement Public Service Tenant -based Rental Assistance (TBRA) Who are the partners in the CDBG and HOME programs? Community Housing Development Organizations (CHDO's) Developers Community Based Development Organizations (CBDO's) Local Governments Private Lenders Contractors Non-profit Organizations Faith -based Organizations How are funds awarded? Washington County grants funds through a competitive request for proposal process on an annual basis. Interested parties submit applications which are reviewed by staff and the CDBG/HOME Citizen Advisory Committee. The Washington County Board of Commissioners reviews the Citizen Advisory Committee's funding recommendations, makes final funding decisions and approves inclusion of these decisions in the Annual Action Plan. A public comment period follows whereby citizens may provide comments or feedback to the county regarding the plan. The plan is for viewing on the county website, in public libraries and in the lobby of the Department of Community Services. After the public comment period, the plan is sent to the Department of Housing & Urban Development (HUD). HUD must review and approves the county's Annual Action Plan before funds are awarded to the county and then to the applicants. Washington County's program year for the CDBG and HOME programs runs from July 1 through June 30th. CDBG and HOME funds are available upon the release of funds by Congress, sometime after July 1st of each year. Accepting grant funds commits the county to help meet the housing and community development needs in areas serving low -and moderate -income residents. As the chart below illustrates, Washington County's CDBG entitlement has decreased steadily from $1,041,000 in its initial year (2001), as a result of annual congressional appropriations to entitlement communities and program funding reductions. The City of Woodbury became an entitlement community in July 2010, which further reduced the County's annual allocation. CDBG HOME 2008 2001 2002 2003 2004 2005 2006 2007 CDBG $1,041,000 1,018,000 $972,000 $960,000 $912,951 $822,949 $827,999 HOME $293,499 $294,625 $308,805 $319,456 $306,098 $287,770 $271,974 CDBG HOME 2008 2009 2010 2011 2012 2013 2014 $803,376 $811,811 $697,819 $581,856 $604,783 $669,694 $602,725 $262,402 $291,573 $230,927 $204,910 $210,844 $215,095 $193,586 CDBG & HOME FUNDING ALLOCATIONS $1,200,000 - - -.- $1,000,000 $800,000 $600,000 �- ----_ -- - ---CDBG---�- W. $400,000 - - $200,000 -.r�r_ _._ "'NOME 7-7 ��.�- - $0 - --- r-I 0 0 0 0 0 0 0 0 0 e -I ei a --I 0 0 0 0 0 0 0 0 0 0 0 0 0 W N N N N N N N N N N N N N r -I O N CDBG/HOME 2014 PROGRAM YEAR PROPOSAL SUMMARY AND FUNDING RECOMMENDATIONS FUNDS AVAILABLE Community Services staff and the CDBG/HOME Citizen Advisory Committee considered five proposals totaling $950,075.00. Two of the proposed projects were reallocated 2013 funds (board approved on March 11, 2014). The estimated amount of funding that is projected to be available for the remaining competitive projects in the 2014 program year is: 2014 Community Development Block Grant (CDBG) Estimated $392,707.04 2014 HOME Investment Partnership (HOME) Estimated $176,728.48 2012 CDBG & HOME Funds that need to be reallocated to a project $ 3,436.87 TOTAL $572,872.39 PROCESS Funding recommendations are a result of a five-step process: Step 1: Staff evaluates projects using 17 criteria approved by the Citizen Advisory Committee and 16 additional decision factor bonus points. Step 2: Citizen Advisory Committee evaluates projects, conducts applicant interviews and makes a funding recommendation to the County Board. Step 3: County Board approves a preliminary funding recommendation. Step 4: County solicits public comment on preliminary funding recommendation. Step 5: County Board approves final funding recommendation. GENERAL EVALUATION AND RANKING CRITERIA Threshold Criteria 4 total points Project Impact 45 total points National Objective 10 points Consolidated Plan Priority 15 points Demonstrated Benefit 5 points Project Duration 15 points Project Management 30 total points Project Readiness 10 points Funding Commitment 3 points Acceptance of Funds as Loan 3 points Documentation of Costs 4 points Organizational Track Record 5 points Other Federal Requirements 5 points Local Commitment and Support 17 total points Community Support 5 points Leveraging of Resources 8 points Other Public Financing 4 points Other Considerations'* 16 total points TOTAL POSSIBLE POINTS 112 points (if an organization had unspent prior funds for 2090, 2019, and 2012 1-3 points were subtracted for unspent funds) "Other considerations includes items such as `close to transit," "health and safety issue," and "serves persons with physical disabilities." 2014 PROJECT SUMMARIES AND FUNDING RECOMMENDATIONS 2014 CDBG & HOME Funding Allocation Discussion The 2014 fiscal year budget for the US Department of Housing and Urban Development (HUD) has not been approved as of the date of this draft, due to the Sequestration and federal budget issues that were postponement to January 2014. Similar to the last three years, without a budget approval Washington County does know the final amount of funds that will be available for the Community Development Block Grant and Home Investment Partnerships Programs for the 2014 program year. The 2014 fiscal year budget for the US Department of Housing and Urban Development (HUD) has not been approved as of the date of this draft and the extent of any cuts and where they will be made, remain unknown. Without a budget approval Washington County does not know the final amount of funds that will be available for the Community Development Block Grant and Home Investment Partnerships Programs for the 2014 program year. The fact that funding for the 2014 fiscal year has not been approved poses a dilemma with the HUD requirement that Annual Action Plans shall be submitted 45 days before the start of the current program year. To ensure that Washington County meets the 45 day deadline set by HUD, the county has proceeded with its 2014 Program Year funding allocation process using a conservative estimate of how much Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds will be available to allocate. We have therefore analyzed a two tiered 2014 budget forecast and have projected funding based on the more conservative 10% estimated reduction. A discussion of how any subsequent increases or decreases to the 2014 budget and projects is included at the end of this report. Tiered 2014 Projected Budget 0% Reduction based on 2013 Allocations 2013 Community Development Block Grant (CDBG) base $669,694.00 2013 Reallocated CDBG Admin $935.79 2013 HOME Investment Partnerships (HOME) base $215,095.00 2011 Reallocated HOME funds $ 2,501.08 TOTAL $888,225.87 10% Reduction based on 2013 Allocations $669,694 x 10% cut = $66,969 reduction $602,725.00 2012 Reallocated CDBG Admin to Projects $935.79 $215,095 x 10% cut = $21,509 reduction $193,586.00 2011 HOME Reallocated HOME funds 2,501-08 TOTAL $799,747.87 For the purpose of our Annual Action Plan draft, Washington County will allocate funding to the following 2014 projects/activities, based on the 2013 allocation of $602,725 in CDBG and $193,586 in HOME funds which includes an estimated 10% program cuts. The funding recommendations are based on the combined staff and Citizen Advisory Committee project score ranking and form the basis for our 2014 Annual Action Plan and recommendations to the County Board. Revisions to the budget and plan will be finalized once the federal budget is determined according to Increase/Decrease Discussion below. The total estimated allocation and reallocated funds are shown below. 2014 Community Development Block Grant (CDBG) Estimate $602,725.00 2012 Reallocated CDBG Admin to Projects (CDBG) $ 935.79 2014 HOME Investment Partnerships (HOME) Estimate $193,586.00 2011 Reallocated HOME funds (HOME) $ 2,501.08 TOTAL $799,747.87 Recommended Projects & Funding PROJECTS CDBG HOME OBJECTIVE OUTCOME Twin Cities Habitat for $90,408.75 (15%) $116,986.92 Decent Housing Availability Humanity, Hugo Townhome (includes 2011 HOME $2,501.08) Decent Housing Affordability Development $13,551.02 (790) Dakota Cty. CDA—Administration HRA —Park Place Improvement $180,075.00 Decent Sustainability Project $19,358.60 Housing Hugo Good Neighbor Food Shelf $ 70,000.00 NeighborhoodFacility Availability Pipeline Project - Plymouth Housing Partners — Piccadilly $142,632.04 $59,741.56 Decent Affordability Square Senior Rental Housing Development Total $392,707.04 $176,728.48 PROJECTS CDBG HOME OBJECTIVE OUTCOME Washington Cty Community Services — Eligibility Specialist $90,408.75 (15%) Decent Housing Availability Washington Cty Community Services — Crisis Fund Decent Housing Availability Washington Cty Community Services—Administration $120,545.00 (20%) $13,551.02 (790) Dakota Cty. CDA—Administration $ 5,807.58 (3%) Total $210,953.75 $19,358.60 The CDBG Droaram allows 20% of the current allocation to hP used fnr nrnnram adminicirntinn Tha HnMF nrnnram allows 10% for program administration. A portion of the HOME administration funds (3.5%) is allocated to Dakota County who acts as the HOME Consortium fiscal agent. The CDBG program also allows up to 15% of funds to be used for public services, which includes the eligibility specialist and crisis assistance funds. All of the 2014 funds allocated will be used to benefit low to moderate income populations. None of the 2014 funds will be used for slum/blight or urgent need activities. The following application summaries are from the four applications received as part of the completive RFP process and the 2013 Piccadilly Square project that has shifted to pipeline status with preliminary contingent awards of both CDBG and HOME due to final funding from Minnesota Housing Finance Agency. The summaries have been edited by staff for this purpose. Applicant: Washington County HRA Title: Park Place Apartment Improvement Project Location: City of St. Paul Park Amount Requested: $180,075.00 CDBG Recommended Funding: $180,075.00 CDBG Pack IWAm At The Washington County Housing and Redevelopment Authority (HRA) proposed to use CDBG funds for rehabilitation/improvement projects at Park Place Apartments in St. Paul Park, Park Place Apartments consists of a 7 building apartment complex with 42 units. The majority of the residents having very low or low incomes 81% of the residents have incomes below 80% area median income (AMI). This property was constructed in 1963. _sate `Trai Ma WUP rlxt �Pmk nw,w: rn,rr+Are 7 Pack IWAm At The Washington County Housing and Redevelopment Authority (HRA) proposed to use CDBG funds for rehabilitation/improvement projects at Park Place Apartments in St. Paul Park, Park Place Apartments consists of a 7 building apartment complex with 42 units. The majority of the residents having very low or low incomes 81% of the residents have incomes below 80% area median income (AMI). This property was constructed in 1963. The proposed scope of work at Park Place includes the replacement of the original boilers and water heaters (49 years old) with energy efficient models, replacement of the windows, kitchen cabinets, bathroom vanities, sinks, faucets, and fans. The work is scheduled to take place in early 2014 and has a 6 month completion timeframe. This project will assist in the preservation of the existing affordable housing units. The requested CDBG funds represent approximately 33% of the total project cost. This project was identified as a pipeline project for 2014 due to the important preservation component and because Washington County HRA chose to defer their funding award to 2014 in order to allow the Mahtomedi project to be fully funded. The Park Place project timeline also aligned with 2014 cycle and thus it was recommended to be a pipeline project for 2014 CDBG funds. CDBG funds in the amount of $180,075. 00 are recommended to assist with this project.. This project meets a high priority of the 2011-2014 Consolidated Plan by serving the households at 0-80% of area median income and maintains existing affordable housing units and is identified as a pipeline project for 2014. Applicant: Hugo Good Neighbor Food Shelf Title: Hugo Good Neighbor Food Shelf Project Location: 152"d Street & Francesca, City of Hugo Amount Requested: $70,000.00 CDBG Recommended Funding: $70,000.00 CDBG Ito" I k Qi l.y- a a y4. � Mmf?mM d a l� X y1; The Hugo Good Neighbor Food Shelf currently operates out of a donated building located at the City of Hugo; however they have outgrown the existing space and ability to serve the number of people who visit the food shelf. They propose to use CDBG funds to assist with acquisition of vacant land for construction of a new food shelf facility in the City of Hugo in summer of 2014. The food shelf served 123 households in 2013 and expects to serve 185 households in 2014 The majority of the clients who use the food shelf (87%) have incomes below 80% area median income (AMI). Three non -housing infrastructure projects goals were identified in the 5 -year Consolidated Plan and one of those goals were met in 2013. This project serves a Medium Consolidated Plan priority and would help the county satisfy another identified infrastructure goal. This project meets a medium priority of the 2011-2014 Consolidated Plan as a non -housing infrastructure project. CDBG funds in the amount of $70,000.00 are recommended for this project, Applicant: Plymouth Housing Partners, LLC Title: Piccadilly Square — New Senior Apartment Development Location: City of Mahtomedi Amount Requested: $352,709.87 2013 CDBG Award $198,013.08 2013 HOME Reservation Recommended Funding -Swap: $142,632.04 CDBG 2014 Swap $210,077.83 CDBG 2015 Swap & Future Reservation $352,709.87 Total $ 59,741.56 HOME 2014 Swap $138,271.52 HOME 2015 Swap & Future Reservation $198,013.08 Total Y�2 Bin3ryvabd 11r�epe 6,:,i" Rd Co"V F t 2 f'.:77A' 631C119a'%4: [isms K rn x R. 7'-M si n� p Plymouth Housing Partners, LLC proposes to use $352,709.87 of CDBG funds for site acquisition from the WC HRA for development of a 78 -unit Senior Housing facility with underground parking located in downtown Mahtomedi. This project involves the redevelopment of the former Piccadilly Restaurant site located at the intersection of Stillwater Road (CR 12) and Wildwood Road (State Hwy 244). This site was closed in 2006 and has remained vacant. The project will serve 78 low/mod income senior citizen households (31 % to 80% of AMI), which meet High Priorities in the 2011-2014 Consolidated Plan. The project will also have five handicapped accessible units. The scope of the project includes: acquisition of land for development of a 78 -unit independent senior (62 years of age and older) housing project consisting of 39 one bedroom and 39 two bedroom units. Five units will be handicapped accessible. The site was acquired by the Washington County Housing and Redevelopment Authority who will complete clearance and site remediation that are scheduled for Spring 2014. The property would be sold to this developer and construction would follow in Fall 2013. During our meetings with the developer, Sands Companies, the construction period is approximately 10 months and the proposed construction completion is projected to occur by August 2014. The requested federal funds represent approximately 2% of the total project cost. 2013 HOME funds were also reserved to this project to fill some of the remaining funding gap. The total amount of funds Washington County awarded to the project in 2013 totaled $352,709.87, or CDBG funds and $198,013.08 in HOME funds. Based on HUD regulations, the county is not able to commit HOME funds to a project until all other sources of funding are committed. This project did not receive final funds from Minnesota Housing Finance Agency (MHFA) in November 2013 and will need to reapply with the state in the June 2014 competitive process. The outcome of the state's future funding round will not allow the County to meet its HUD deadlines. Thus the 2013 CDBG & HOME funds already approved have been swapped or reallocated to two other shovel ready projects. In the place of 2013 CDBG & HOME funds already awarded to Piccadilly Square, 2014 and 2015 are reserved for this project for both federal programs. This project is now identified as a pipeline project for 2015 with a partial reservation of 2014 CDBG funds totaling $142,632.04 and a partial reservation of HOME funds totaling $59,741.56. Additional 2015 CDBG & HOME funds are pledged/reserved to add up to the original CDBG award amount of $352,709.87. The 2013/2015 program year funding swap will be completed following the Fall 2014 MHFA funding announcements and the County's 2015 Annual Action Plan process and a competitive RFP for 2015 may or may not be necessary given the pipeline project. 2014 and 2015 CDBG and HOME funds are recommended for this project application to complete the funding year swap with 2013 fund in order to allow the project more time and for the county to meet HUD requirements. This project would meet high priorities of the 2011-2014 Consolidated Plan by serving the elderly and households at 0- 80% of area median income. Applicant: Twin Cities Habitat for Humanity (CHDO) Inc Title: Generation Acres —Single Family home development Location: City of Hugo Amount Requested: $350,000.00 2013 HOME Recommended Funding: $116,986.92 2014 HOME $198,013.08 2013 HOME ;.V ai •r 9s-:»:1 : 1, A C R }::.)YEA: YY_i•:. .M1 - Y -S Twin Cities Habitat for Humanity (CHDO) Inc. is requesting additional HOME funds in the amount of $116,986.00 for use in construction of nine townhome units at Generation Acres Subdivision. This area is comprised of single family homes, townhomes, and patio homes. The subdivision was partially developed before the developer went bankrupt and the property was foreclosed on. Only two townhome buildings were constructed at Generation Acres prior to foreclosure. The site was approved for 10 buildings, each with four units, which have sat vacation for several years. Habitat was able to get the six foreclosed vacant acres as a land donation by local Hugo residents and the land donation will help meet the required HUD matching funds. 2013 HOME funds in the amount of $198,013.08 were awarded and swapped to this shovel ready project when another project stalled; however, additional HOME funds are needed to make the project feasible and fund the requested amount. Allocation of HOME funds to this project may satisfy our CHDO set aside requirement for 2013 & 2014 for HUD. This project meets high and medium priorities of the 2011-2014 Consolidated Plan by serving households at 0-80 of area median income. Additional HOME funds in the amount of $196,986.92 +/- are recommended for this project. In order to meet HUD expenditure timeframes, funding years may be swapped if another project cannot move forward and meet project milestones. 2014 Budget Changes: Handling of Increases or Decreases in Fundina Should the Department of Housing and urban Development allocate CDBG and HOME funds above or below the estimates provided above, Washington County will allocate any increases or decreases in the following manner; Community Development Block Grant • Increase the pipeline project reserved funding to the Plymouth Housing Partners LLC — Piccadilly Square Senior Rental Development project. Increase program administration and public services funding in accordance with the allowable program percentage (20%/15%). Home Investment Partnership Program • Increase funding to the pipeline project reserved funding to the Plymouth Housing Partners LLC — Piccadilly Square Senior Rental Development project • Increase program administration funding in accordance with the allowable program percentage (10%). Should the Department of Housing and Urban Development allocate CDBG and HOME funds below the estimates provided above, Washington County will allocate funds in the following manner: Community Development Block Grant • An equal percentage decrease in funding to all projects allocated funds in the 2014 program year. • Decrease to program administration and public services funding in accordance with the allowable program percentages (209/0/159'0). Home Investment Partnership Program • An equal percentage decrease in funding to all projects allocated funds in the 2014 program year. • Decrease to program administration and public services funding in accordance with the allowable program percentage (10%) Should a CDBG or HOME funded project not be able to move forward as anticipated and in order to meet timely spending tests and the new HOME Rules regarding commitment, expenditure and completion dates, program year funds may need to be swapped with another shovel ready project in order to meet the HUD requirements. Any program year swap will be identified in a Plan Amendment, submitted by the County and approved by the Dakota County CDA and the HOME Consortium Lead and HUD. I 6A M TwinClltles.com St. Paul Pioneer Press Washington County St. Paul $800,00 in' federal City read housing cash divyie up ' County board approves spending. plan 80% cut in res.identi By Frederick Vela By . Bob Shaw, Humanity project in Hugo, fmelo@pioneerpre-,m.com bshinv@pioneerpress.com $117,000 in HOME funds, 15 percent of the project cost. St. Paul will _-tplore how to Federal funding of $800,000 k. The Park Place Improve- boost- participation in exist - for : several Washington meat Project in St. Paul Park, ing recycling programs,get I County housing projects $180,000 in block grant funds, residents to reuse or recycle advanced this week, with 22 percent of the project bulky items such W. Wn. county board approval of a cost antes, Increase recycling in draft spending plan. .. --s - - -The Hugo Good Neighbor parks, athletic center and The expenditures are for Food Shelf, $i0,000 in block construction sites and mm the fiscal year beginning in, grant funds, 22 percent of the toward municipal collection July. The itioney will come project cost , I of organics — food and paper from the Community Devel- *Washington County Pub- waste — by 2017. opment Block Grant program lic Services, $90,000 in block vCity officials have said and the HO.. Investment grant funds, 100 percent of they're under pressure from program, both of which are that program's cost, Farmer- the state to boost recycling, administered by the. federal Kubler said this would be which has effectlively peaked Department of Housing and "crisis funding" for people and even shov, signs of Urban Development living in poverty. decline in neighborhoods i The federal money usually In addition. $140.000 of the occupied by new residents, I pays for only part of a nous- funds — I7 percent of the such as renters and recant i ing project said Mary Fmm- total — would go to local inunigirants less familiar with J er-Kubler, economic support administration of the two recycling options_ supervisorfor the county. federal programs . With an eye to the environ - Recommended for federal The release of the plan ment and greenhouse gas funding are: kicks off a 31 -day public com- ,_, The 79 -unit Piccadilly ment period, which will end Square Senior Rental project April 25. Farmer-Kubler said in Malitomedi, being built by public comments will be Plymouth Housing Partners, added to the plan. which is Faith notes which would got $143.000 in fxpeded to be approved by block grant funds and $60,000 the board in May, in HOME funds, for a total of I :11 WARC!i �7 roughly 1 percent of the proj- Bob Shaw can bermichedat 113111 Gaither & Gaither Vocal ect cost'. 0-228-54.33. Follow hhand! Grace United Church,im at 9301 Eden. Prairie Road, Eden t A Twin Cities Habitat for rw1ttercom/BShawPP . P i ra;rie, will host tnis group that will,share gospel classics, ;nsp;iing new favorites, for all aqe�q. oups. The concert begins DONATE YOUR CAR at 7 p.m. Tickets, $35-;2Z are available by calling 800-965- 9324 at go to - JFC14Wimierproductions.com. shsre , e, p Woe- dAlanalLutheran CORE Open .11fieting: Calvary Lutheran Beneft1mg .1; chunth, 7SZ0 Golden Valley. A, Road, Golden Valley, 7 p.m. The Ktopic will be "Another Heresy hallenges Christ's Chuich.7 Is E 11 4 Aj your cengregation being afaffectedA by these- fal§e. teachings? Come Minnesota' and lain the discussion. *Free Vehicle Pickup ANYWHERE 1114411011 2C we *,Afe Accepi All Vehicles Running or Not Organ Concert-Wahael Hey will perform at Augusta Lutheran Also Boats, Motorcycles & RVs Church, 1400 S. Robert 5t., We h "Fully —1"x Deductible St. Paul, at 700 p.m. No W admission charge; nursery is CC.L11: (651) 155-9474. available 106 W. Water Street, Ste 301 Saint Paul, Minnesota 55107 651.330.4286 COMMERCIAL — LAND EXCLUSIVE LISTING AGREEMENT Date: IN CONSIDERATION OF THE AGREEMENT between WAKOTA COMMERCIAL ADVISORS, LLC, hereinafter referred to as (`BROKER") and THE CITY OF HUGO (hereinafter referred to as SELLER) SELLER grants to BROKER the exclusive right to sell or contract to sell the property comprising of approximately 4.62 acres and described as: (SEE EXHIBIT A) in the amount of $ i _ for the period from the date hereof through midnight NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT. It is further agreed that SELLER shall pay BROKER a Brokerage Fee of Seven (7%) percent of the Purchase Price (Eight (8%) in the event of a co -broker transaction) if the Property is sold, exchanged, or conveyed, upon occurrence of any of the following conditions: 1) The sale, installment sale, exchange, or conveyance of the Property during the period of this Agreement by BROKER or any other person, including but not limited to SELLER, or any other agent or broker not a party to this Agreement, in accordance with the price, terms or exchanges as set forth herein or as otherwise consented to by SELLER; or a) Except if the sale, installment sale, exchange, or conveyance of the Property is with such entity that is listed in Exhibit B. 2) The sale, installment sale, exchange, or conveyance of the Property within one hundred eighty (180) days after the expiration or termination of this Agreement to any prospect with whom BROKER has negotiated or to whom BROKER has exhibited said Property during the period of this Agreement, and whose name was disclosed to SELLER in writing by BROKER not later than ninety-six (96) hours after the expiration or termination of this Agreement; or 3) SELLER, at its sole and absolute discretion, may reduce the Purchase Price upon approval by the Hugo City Council, Seller at its sole and absolute discretion, may offer tax increment financing or other incentives to defray development costs. *The above timeframes may be extended provided there are ongoing negotiations between Seller and Buyer beyond the expiration date. It is acknowledged that the Brokerage Fee is and shall be deemed to be a share of the purchase money received by SELLER, and BROKER shall be secured by, and shall have a security interest in, such funds until the brokerage Fee is paid. BROKER and its partners shall effectively market the property in terms of a sign on the property, brochures, property visits, real estate websites, cold calls, and mailings, as well as other means deemed necessary by the BROKER. BROKER shall provide bi-monthly reports on who has been contacted and findings to the SELLER, with quarterly presentations to the Hugo Economic Development Authority. SELLER and BROKER shall both have the right to terminate this Agreement by giving to the other a thirty (30) day written notice. Should SELLER elect to terminate this agreement, however, all remaining provisions hereunder shall remain in full force and effect. SELLER hereby agrees to provide Purchaser Abstract of Title, or Registered Property Abstract Or Title Insurance Certificate, certified to date, to include proper searches covering bankruptcies and state and federal judgments and liens, and to execute or cause to be executed a deed conveying a marketable title to the Property to the Purchaser and further documents as may be required to consummate the sale to Purchaser in accordance with the terms above designated or with the terms to which SELLER may hereafter consent. SELLER further agrees to promptly notify BROKER of any such notices or information regarding hazardous waste or substances pertaining to the Property, which are hereafter received or learned during the term of this Agreement. SELLER authorizes BROKER to allow subagents or agents representing a Buyer to market the property and to share the Brokerage Fee with a Purchaser's Broker. CITY OF HUGO By: Date: Bryan Bear, City Administrator Address: 14669 Fitzgerald Ave N, Hugo, MN 55038 Telephone: 651-762-6300 E-mail: Bbear(a�ci.hugo.mn.us WAKOTA COMMERCIAL ADVISORS LLC By: Date: Jeff J. Houge, Managing Director Address: 106 West Water Street, Saint Paul, IUN 55107. Telephone: 651.330.4286 E-mail: 'effwwakota.com EXHIBIT A EXHIBIT B 1. Kozlaks' Royal Oak Resturant 2, Green Mill 3. LHR, Hospitality Management 4. Forest Lake Floral 5. Roberts Family Funeral Home 6. Big Apple Bagel's 7. Lakeshore Players Theatre �A N 1 inch = 100 feet Site Map w+F _ s wr . t ,- y .I Legend Right of Way Parcel Boundary City Owned Property