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HomeMy WebLinkAbout2014.06.10 EDA Agenda PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, JUNE 10, 2014 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call 5:02 pm 3. Approval of Minutes • EDA Meetings of April 8, 2014 • Joint Workshop of May 8, 2014 5:03 pm 4. Update from Realtors • Bill Bergeson, High Pointe Realty • Jeff Houge, Wakota Commercial Advisors 5:30 pm 5. Update on Joint Workshop on Downtown 6:00 pm 6. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, JUNE 10, 2014 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the April 8, 2014, EDA meetings as presented. Staff recommends approval of the minutes from the May 8, 2014, joint meetings as presented. 4. UPDATE FROM REALTORS On April 7, 2014, the City Council approved a contract with a partnership of realtors to market the City owned property in downtown Hugo. The realtors will be present at the meeting to provide the EDA with an update on the work they have completed to date. The update will include who they have sent the property information to, where the property is listed, and what they have been hearing about the property. 5. UPDATE ON JOINT WORKSHOP ON DOWNTOWN Staff will provide an update on the joint City Council, Planning Commission and EDA workshop on downtown from May 8, 2014. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. MINUTES FOR THE EDA MEETING OF APRIL 8, 2014 Weidt called the meeting to order at 5:00 pm. PRESENT: Arcand, Klein, Gallivan, Puleo, and Weidt ABSENT: Denaway STAFF: Bryan Bear, City Administrator Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF MARCH 11 2014 Klein made motion, Gallivan seconded, to approve minutes for the EDA meeting of March 11, 2014. All ayes. Motion carried. 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 presented the details and examples of the program to the EDA at the meeting. Staff stated there is not a deadline to enter the program and with talking to the Met Council staff the program is very easy to enter once a project comes forth. The EDA agreed that the program is a good economic development tool and directed staff to bring this item back to the EDA if it would benefit a specific project. 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 recommended the EDA provide staff with comments on the plan to forward to Washington County. The EDA agreed that the plan was a good start for economic development for the County. The wanted to provide comments to allow the CDBG to be in favor of economic development projects. Additional comments included encouraging the County to get started as soon as possible on the action items. 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. Staff stated that the Hugo Good Neighbors Food Shelf and Habitat for Humanity were approved for CDBG funding for 2014. 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. UPDATE ON DOWNTOWN REDEVELOPMENT Staff reminded the EDA of the Joint City Council, Planning Commission, and EDA Workshop on Thursday, May 8, 2014, to discuss the updated Maxfield Research Inc., downtown market study and the downtown plan and design guidelines. Klein made a motion, seconded by Gallivan, to adjourn at 5:40 P.M. All ayes. Motion carried. MINUTES FOR DOWNTOWN MARKET STUDY/DOWNTOWN PLAN & DESIGN GUIDELINES JOINT WORKSHOP THURSDAY, MAY 8, 2014 RICE LAKE CENTRE COUNCIL PRESENT: Weidt, Petryk, Klein, Haas, Bronk COUNCIL ABSENT: None PLANNING COMMISSIONERS PRESENT: Arcand, Kleissler, McRoberts, & Lessard PLANNING COMMISSIONERS ABSENT: Gwynn, Rosenquist, & Knauss EDA PRESENT: Arcand, Denaway, & Gallivan EDA ABSENT: Puleo CITY STAFF PRESENT: City Administrator Bryan Bear, Planner Rachel Juba, Community Development Intern Connor Schaefer Planner Rachel Juba provided background on the Downtown Market Study done by Maxfield Research Inc. Joe Hollman, Senior Analyst of Maxfield Research Inc., presented on the analysis of the Market Potential for Housing and Commercial Uses in Downtown Hugo. Findings concluded that there is a potential market for limited multifamily housing, small business retailers, restaurants, office users who service local households, and a limited -service hotel. Maxfield Research Inc. identified five key development sites. Maxfield research recommended aggressive marketing promotion. Planner Rachel Juba presented on the City of Hugo Downtown Plan & Design Guidelines. The discussion focused on the Plan & Design Guidelines and if they should continue to direct the development of Downtown Hugo. The City Council, Planning Commission, and EDA concluded that the City continue to be guided by the Downtown Plan & Design Guidelines. Respectfully submitted, Connor Schaefer Community Development Intern WAKOTA commcrcial advIS01's Prime Lakefront Commercial Land Mixed Use Development Opportunity SEQ Highway 61 and 147th Street Hugo, MN 55038 Exclusively Listed By: Jeff Houge — Wakota Commercial Advisors leffnn wakotaxom Bill Bergeson — High Pointe Realty bW(&billbergeson.com 651.330.4286 651.270.9191 Property Location and Photos S z 2 x o wovoo (rrtRLOW Nrlr<t NYe Hugo e, o M4nHa t Y,f 1]p.�5; je trop z i lino tykes �n m,. c.+N...w Centerville mSl, a:.nrxe.a sew ,m. re>, S z 2 x o wovoo (rrtRLOW Nrlr<t NYe Hugo e, view' - °;; White Bear Lake Vadoais Heights yem UFe k YAIegR �u L. NOW. r_ r ..;,,wi,N• Wr.sr.,>a,>��"tAw`.W"eiYM7lIf� L .>..�' �. • yam., d:'� '— a:.nrxe.a sew ,m. f Mtl felt eF CP 0...: "fVltl[e Bed! BedCll ops„"`t _ �' Deuwood view' - °;; White Bear Lake Vadoais Heights yem UFe k YAIegR �u L. NOW. r_ r ..;,,wi,N• Wr.sr.,>a,>��"tAw`.W"eiYM7lIf� L .>..�' �. • yam., d:'� '— SALE PRICE: PROPERTY SIZE: ZONING: VISIBILITY: TOPOGRAPHY: PROPERTY OWNER: DESCRPITION: Site Statistics $6.00 per Square Foot Approximately 4.62 Acres Central Business (C-1) Downtown Plan and Design Guidelines Apply Very High - Located on Highway 61 Average Daily Traffic Volume of 16,000 Cars per Day Level/Generally Flat City of Hugo, MN The property is located in the heart of the City of Hugo and offers a wide array of opportunities for any buyer. With over 650 feet of lakeshore frontage, this beautiful property is prime for a mixed used development with a restaurant/entertainment use, as well as, commercial, boutique retail, office, and housing. This property could become the centerpiece for the downtown business district in the City of Hugo. A survey of the property is available upon request. The property is within minutes of the newly redesigned freeway interchange at I35E (ADTV 86,900) and County Rd 14/8 (ADTV 13,900). Highway 61 (ADTV 14,100) has been recently resurfaced and a turn lane has been constructed to access the property. AREA TENANTS: In addition to a large day time population of 1,973 employees, mostly due to the two industrial parks located in Hugo, there are several commercial tenants in the area. Festival Foods Grocery • Guys and Dolls Salon . Cornerstone Chiropractic • Law Firm Subway • Adevia Salon . Hugo Chiropractic • Lorenz Dance Blue Heron Grill • Kwik Trip . Edward Jones Financial • North County Auto Savoy Pizza • Postal Credit Union . Luxury Nails • St. Croix Saddlery Dominos Pizza • Snap Fitness . Hawaiian Tan • Hugo Auto Parts Papa Murphy's Pizza • Martinizing Dry Cleaning . Northern Lights Pediatrics • Sagers Liquor Dunn Brothers • Bates Orthodontics . Children's Hospital Clinic • On the Rocks Liquor Amian Bistro • Lake Area Bank . HealthPartners Clinic • Anytime Fitness Blacksmith Restaurant • Premier Bank . Health East Clinic • Martial Arts Academy Wagner's Nursery • PAWS Pet Hospital . Associate Eye Care • Hugo Dental Great Clips • Verizon . Hugo Feed Mill/Hardware • Kids Ability Therapy Fantastic Sam's 0 Oneka Dental 0 Fairview Clinic/Pharmacy • Tax Associates lif� HCity of ugoMW ILUNITY PR The City of Hugo is a growing community in the northeast Twin Cities metropolitan area. Located 20 minutes north of St. Paul, residents can enjoy the convenient access to urban opportunities while bene- fiting from the open spaces, recreational programs, high quality school districts, and the close knit community that Hugo has to offer. Hugo is characterized by a pleasant blend of rural and suburban landscapes with an abundance of nat- ural resources. We believe we offer something for everyone, including a high quality of life for all. Hu- go has seen rapid growth in recent years, and the city's future remains bright. In this city of nearly 14,000 citizens, growth has been managed respon- sibly through careful planning. Much of Hugo's land remains as agricultural or undeveloped with many farms and equine operations, yet the city includes a variety of businesses and attractions. Residents en- joy the use of many lakes, some of them very small and quiet with natural, unspoiled shorelines. LIVING IN HUGO Hugo's neighborhoods are strong, vibrant and well planned, often oriented around natural open spaces or parkland. Neighborhoods are connected to each other by a developing system of paved pedestrian trails that also provide access to a multitude of parks and recreational amenities. During the recent economic downturn, the city has focused on improving the infrastructure in our older neighborhoods, and preparing the city for future economic growth. Hugo's residential growth has led to an emerging retail and commercial market bringing many new businesses and services to the community. With open spaces, a wide range of housing options, 17 parks, local trails connecting to two regional trails, and relatively low tax base, Hugo offers residents far more than the average City. A GREAT PLACE FOR BUSINESS Industrial businesses continue to locate and expand within the city's industrial parks adding new jobs to the community. Residents and business owners who locate here find that the City provides efficient and friendly service with relatively low tax rates. Whether you'd like to locate in our industrial parks, in a retail space, or any other commercial property, Hugo City staff will work with you to make it easy. Hugo is the home of several large businesses such as Wilson Tool International, Xcel Energy Inc, Schwieter's Construction, and Festival Foods. City of Hugo - 14669 Fitzgerald Avenue North - (651) 762-6304 - www.ci.hugo.mn.us City of Up Hugo is growing community, with the population expected to rise above 14,000 by 2018. Population (2012)1 13,671 Projected Population (2018)1 14,551 (2030)' 40,000 Households' 5,186 Families' 3,853 Average Household Size2 2.66 Median Household Income' $82,690 Per Capita Buying Income2 $33,544 Home Ownership Rate2 85.6% Median Household Value2 $228,900 Median Age' 33.41 Number of Businesses' 300 Employees' 2,519 Bachelor's Degree or Higher2 38.61% POPULATION GROWTH Znnn_2n>In LARGE NUMBER OF YOUNG FAMILIES 40.4 % of households in Hugo have one or more people under the age of 18, compared to 31.8% statewide. 2 HIGHLY EDUCATED PEOPLE Hugo residents are more highly educated than the state or nation with 38.61% of adults having earned a Bachelor's degree or higher2. 'Applied Geographic Solutions, 2013, Accessed via greatermsp.org 2 U.S Census Bureau, Census 2010 3 Metropolitan Council System Statement City of Hugo - 14669 Fitzgerald Avenue North - (651) 762-6304 - www.ci.hugo.mn.us tHCity of VELOPMENT ugo NOWL A GREAT PLACE TO LOCATE A BUSINESS Our expert staff will get you through the development approval process quickly and efficiently. Below are a few highlights of ways Hugo is a great place to locate a business: • No Park dedication fees for commercial or industrial development. • No Trunk sewer charges for redevelopment sites in downtown Hugo. • Our industrial parks are just 2 miles east of 1-35E and located off of Highway 61 • The Bald Eagle Industrial Park is served by a rail line and offers a public spur for all businesses to access. • Hugo is a one stop shop for commercial and industrial development as it is the Local Governing Unit for Rice Creek Watershed District. • Hugo completed a Business Retention and Expansion (BR&E) Program in 2010 and was awarded an Inter- national Award of Excellence for the program in 2012. AVERAGE LOCAL TAXES BASED ON A $1 MILLION COMMERCIAL/INDUSTRIAL PROPERTY' Wyoming $20,121 Chisago $18,658 Maplewood $18,567 ShoreNew $16,878 Lira Lakes $16,171 Vadnais Heights 4 111111110 $15,122 Cottage Grove 4 M $14,954 Blaine $14,962 White Bear Lake $14,846 Stillwater $14,544 Oakdale $14,155 Woodbury $14,010 Columbus $14,032 Forest Lake $12,958 Hugo $12,372 $0 $5,000 $IoXo $I5,0DD $20,000 $ss,000 AVERAGE TOTAL TAX RATE' Average City, County, School, and Special tax Hugo 103.78% Forest Lake 108.69% Columbus 117.70% Woodbury 118.02% Oakdale 118.73% Stillwater 121.99% White Bear Lake 124.53% Blaine 125.50% Cottage Grove 125.68% Vadnais Heights 131.87% Lino Lakes 135.66% Shoreview 141.57% Maplewood 155.74% Chisago 156.50% wyo-mrag 168.77% Local Property Tax comparisons are perhaps the most revealing because it shows how much tax is going to each City. The City of Hugo has a relatively low local tax rate and strives to keep a balanced levy. In addition to taxes, many of the cities above impose fees, such as, franchise fees, business license fees, land- scape escrows, and park dedication fees. Hugo does not impose any of these fees. of Minnesota Cities; 2013 Property Tax Data; Via LMC website City of Hugo - 14669 Fitzgerald Avenue North - (651) 762-6304 - www.ci.hugo.mn.us City or ugo Hugo average annual household expenditures: $ 65,247 Apparel $3,011 4.7% $15.3 Men's Apparel $575 Magazines $2.9 Boys' Apparel $143 $75 $0.7 Women's Apparel $1,001 $1.9 $5.1 Girls' A arel $199 Other Tobacco Products $1.0 Infants Apparel $134 $12,719 20.1% $686.0 Footwear $459 $17.7 $2.3 Apparel Services and Accessories $498 Motorcycles (New And Used $2.5 Education $1,620 2.5%1 $8.3 Books And Supplies $227 S14.1 $1.2 Tuition $1,392 $7.1 Entertainment $3,573 5.6% $18.2 Fees And Admissions $978 $5.0 Video And Audio Equipment $1,198 $6.1 Recreational Equipment $1,395 $7.1 Food and Beverages $9,451 14.9% $48.2 Food At Home $4,747 $24.2 Food Away From Home $3,951 $20.2 Alcoholic Beverages $752 $3.8 Health Care Insurance $1,780 $9.1 Health Care Services $885 $4.5 Health Care Supplies $1,021 $5.2 Household Furnishings $2,900 4.5% $14.8 Household Textiles $201 $1.0 Furniture $800 $4.1 Floor Coverings $106 $0.5 Major Appliances $323 $1.7 Housewares And Small Appliances $1,468 $7.5 Shelter $12,278 19.4% $62.7 Mortgage Interest $5,262 $26.9 Property Taxes $2,234 $11.4 Misc. Owned Dwelling Costs $1,704 $8.7 Rental Costs $2,289 $11.7 Other Lodging $787 $4.0 Household Operations $2,381 3.7% $12.2 Babysitting And Elderly Care $551 $2.8 Household Services $429 $2.2 Alimony And Child Support $343 $1.8 Household Supplies $1,056 $5.4 Contributions 1 $2,441 3.8% $1.2 Personallnsurance 1 $676 1.0.00 $3.5 Electric r Spend' 1.6% Reading $207 0.3%1 $1.1 Newspapers $88 $0.5 Magazines $42 $0.2 Books $75 $0.4 Tobacco $365 0.5% $1.9 Cigarettes $329 $1.7 Other Tobacco Products $36 $1.9 Transportation $12,719 20.1% $64.9 New Vehicle Purchase $3,475 $17.7 Used Vehicle Purchase $1,909 $9.7 Motorcycles (New And Used $92 $0.5 Vehicle Finance Charges $603 $3.1 Gasoline And Oil S2.768 S14.1 Of 'Applied Geographic Solutions, 2012,Accessed via greatermsp.org Gifts Elsewhere Unspecified $272 1 1 $1.4 1 City of Hugo - 14669 Fitzgerald Avenue North - (651) 762-6304 - www.ci.hugo.mn.us HCity of ugo Hugo has a wide variety of housing options, including high end executive homes, affordable homes for first time home buyers, and rentals. The housing market is on the rise in Hugo and across the Twin Cities. The median home sale price is rising, the inventory of homes for sale has decreased from 2011, and homes are now selling faster than last year. Owner Occupied Housing' 95.38% Median Household Valuez $228,900 Renter Occupied Housing' 4.62% Total Housing Units' 5186 Median Gross Rentz $1,280 Area Overview Total Change % Cumulative For 20133 Closed from New Days on % of Original Sales 2012 Construction Market Price Received Hugo 3461 8.5%1 14.7% 74 97.3% Twin Cities Region 53,0871 8.8%1 6.9%1 831 96.1% Hugo Local Market Update - April 20143 New Listings Closed Sales Median Sales Price' Average Sales Price' Price Par Square Foot' Percent of Original List Pricy Received' Days on Market Until Sale Inventory of Homes for Sale Months Supply of Inventory April +15.6% -46.3% -15.1% ------------- Change in ------------- Change in -------------- Change in New Listings - - - - - - Closed Sales - - - - - Median Sales Price - April Year to Date 2013 2014 -- - / - 2013 2014 t I- 45 52 x15.8% 156 145 -7.1% 41 22 -46.3% 98 68 -30.6% $195.000 5165.500 -151% $174,500 5165,000 -5.4% 5214,868 S183,768 -14.5% $215,791 5206.122 -4.9% $102 516E .2.1% S102 5141 .1.8% 96.2% 96.9', .0]% 97.1% 07.0% -0.1% 77 96 .24.7% 91 93 -8.8% 90 96 .6.7% -- -- 3.3 3.6 a 9.1% -- -- -- ■2013 .2014 Year to Date 52 45 41 22 t 15.6°l° -46.3% New Listings Closed Sales 1 Applied Geographic Solutions, 2013, Accessed via greatermsp.org 2 US Census Bureau, Census 2008-2012 American Community Survey 3 St. Paul Association of Realtors, Local Market Update 2012/2013 02013 02014 156 145 lij98 68 -7.1% -30.6% New Listings Closed Sales City of Hugo - 14669 Fitzgerald Avenue North - (651) 762-6304 - www.ci.hugo.mn.us