HomeMy WebLinkAbout2014.09.09 EDA Agenda PacketAGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
TUESDAY, SEPTEMBER 9, 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 August 12, 2014
5:03 pm
4.
Update from Realtor
• Bill Bergeson, High Pointe Realty
5:25 pm
5.
Recap of Mirca Manufacturing Site Visit
5:35 pm
6.
Review of 2030 Comprehensive Plan
• Economic Development Section
6:20 pm
7.
Update on Downtown Redevelopment
6:30 pm
8.
Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, SEPTEMBER 9, 2014
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the August 12, 2014, EDA meetings as
presented.
4. UPDATE FROM REALTOR
On April 7, 2014, the City Council approved a contract with a partnership of realtors to
market the City owned property in downtown Hugo. Bill Bergeson will be present at the
meeting to provide the EDA with an update on the marketing work that has been
completed to date.
5. RECAP OF MIRCA MANUFACTURING SITE VISIT
The EDA made a site visit to Micra Manufacturing and toured the facility guided by the
president of the company Craig Benson. Micra Manufacturing specializes in machining,
fabrication, sawing, welding, abrasive blasting, and painting of metals. Mr. Benson
provided background on the business and showed the EDA the pieces of equipment that
are used to make the products they manufacture. Staff would like to recap the business
visit with the EDA.
6. REVIEW OF 2030 COMPREHENSIVE PLAN
One of the EDA's goals for 2014 includes a review of the economic development section
of the 2030 Comprehensive Plan. The Comprehensive Plan was adopted by the City in
2010 and the EDA has accomplished several items since then. Staff will provide an
overview of the section and what items the EDA has completed to accomplish the goals.
Attached is the economic development section, please review prior to the meeting.
7. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will provide an update to the EDA on the progress with downtown redevelopment
MINUTES FOR THE EDA MEETING OF AUGUST 12, 2014
Weidt called the meeting to order at 5:00 pm.
PRESENT: Klein, Gallivan, Puleo, Denaway, and Weidt
ABSENT: Houle
STAFF: Bryan Bear, City Administrator
Rachel Juba, Planner
APPROVAL OF MINUTES FOR THE EDA MEETING OF JUNE 10, 2014
Klein made motion, Denaway seconded, to approve minutes for the EDA meeting of June 10,
2014.
All ayes. Motion carried.
SITE VISIT - MICRA MANUFACTURING - 15587 FOREST BLVD
The EDA made a site visit to Micra Manufacturing and toured the facility guided by Craig
Benson, president of the company. Micra Manufacturing specializes in CNC machining,
fabrication, sawing, welding, abrasive blasting, and painting of metals. Mr. Benson provided
background on the business and showed the EDA the pieces of equipment that are used to make
the products they manufacture. The website is hlW://www.micramanufacturing.com/, please visit
to find out more about the business.
ADJOURNMENT
Klein made a motion, seconded by Gallivan, to adjourn at 6:15 P.M.
All ayes. Motion carried.
Chapter 6: Economic Development Plan
6.1. INTRODUCTION
In 2004, the City reorganized its Economic Development Authority (EDA) into a
seven member advisory group including the Mayor and one City Council
member. As an advisory commission to the City Council, the EDA is responsible
for attracting economic growth and development, retaining businesses, and
assisting with the expansion of existing businesses within the community. The
EDA recommends economic development policies and economic financing
incentives to the Council, and works to promote the City. The EDA has prepared
this long-range strategic plan for economic development within the City.
6.2. PURPOSE
The purpose of this plan is to expand and enhance the City's commercial and
industrial base. The City's goal is to establish a healthy, thriving business
community that will maintain and enhance the City's high quality of life. An
expanded business community will provide an expanded tax base, increased
local employment, a greater variety of jobs, and a full range of goods and
services for its citizens.
6.3. BACKGROUND AND BUSINESS CLIMATE
Downtown Huao
Historically, the City's business community has been concentrated in the
downtown area of Hugo. The majority of the City's retail and service businesses
are still located in the downtown area. The downtown area contains
approximately 145,000 square feet of commercial space occupied by
approximately 41 businesses. The retailers include both neighborhood
convenience businesses and specialty retailers. There are a variety of
automotive uses as well as service businesses in the downtown. Most of the
businesses are independently owned local businesses with very few national
chains or franchises. Downtown Hugo is also characterized by City Hall, St.
John's Church, the American Legion Hall and Hugo Elementary School.
Highway 61
Over time, a wide variety of businesses have located along much of the length of
Highway 61, particularly north of the downtown area. The majority of the
businesses located along Highway 61 remain to this day on private well and
septic systems and many are located in metal pole barns on gravel lots and
contain uses that require outdoor storage. Uses along the corridor include
automotive uses, manufacturing uses, contractor operations, landscaping
Chapter 6 1- 6 -
Economic Development Plan"�_
HZWIWol
businesses, auto salvage yards, and a recycling center. The majority of the
businesses have minimal investments into buildings or site improvements, and
many of these will likely be redeveloped as municipal services are extended to
these areas.
Peloauin Industrial Park
This industrial park located at Highway 61 and 152nd Street was developed on
gravel streets and without municipal services. Uses generally include
manufacturing, warehousing, and contractor type businesses. Businesses are
generally located in metal buildings on gravel lots, and contain minimal site
improvements. The City extended municipal sewer and water and constructed
paved city streets with drainage improvements to the industrial park in 2004.
Since that time, the City has seen substantial new investment in the industrial
park, resulting in the construction of new buildings, site improvements, and
ultimately new businesses locating within the park.
Bald Eagle Industrial Park
This Industrial Park was developed by the City, beginning in 1999 with the use of
Tax Increment Financin�. The park is located along a rail spur beside Highway
61, and between 130 and 140th Streets. Construction standards were
established, resulting in higher quality concrete buildings, and sites that are
paved and landscaped. The City's largest employers are located in the park.
Uses consist primarily of manufacturing, technical, warehousing and construction
related businesses. There is also a pet resort and a mini -storage located in the
park. Development of this industrial park along a rail spur has been a major
success, and the park is now home to the largest concentration of jobs in the
City.
County Road 8 Gateway
The area near the intersection of CSAH 8 and Victor Hugo Boulevard has been
experiencing significant retail development over the past two years. In 2006,
improvements were completed on to County Road 8, which resulted in a four -
lane divided roadway, including extensive landscaping, street lighting and
decorations. The roadway not only improves traffic capacity, it establishes an
improved entrance to the City. Development in this area includes a grocery
store, retail shops, several banks, restaurants, medical uses, a gas station, and a
day care. The buildings offer a high level of architectural design with quality
materials and innovative site planning, landscaping, and attention to detail.
Demand for retail space at this location is mostly due to the recent surge in
residential development in Hugo, the proximity to Interstate 35E, and the recently
completed road improvements to the County Road.
Chapter 6 6.2
Economic Development Plan.��
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6.4. OPPORTUNITIES AND BARRIERS TO ECONOMIC DEVELOPMENT
Since 1999, the City's Bald Eagle Industrial Park has seen steady development.
Today, nearly all the property within the industrial park has been developed.
Multiple quality businesses have located in the industrial park, bringing diverse,
quality jobs to the City. Business owners that have selected to move their
business into the industrial park have identified a number of advantages to
locating a business in Hugo, including:
• Location and transportation connections, including Highway 61, the
BNSF railroad, and the close proximity of 1-35E.
• Access to major markets and to available infrastructure within the Twin
Cities area
• Well educated, skilled, and rapidly expanding labor force
• Natural resources
• Schools
• Diversity of housing options
• Low crime
Available land
• Financial incentives, including Tax Increment Financing
• Constructed local infrastructure including roads and utilities
• Helpful, Effective, and Supportive City Council and City staff
Since 2005, the City has welcomed a number of new commercial retail, service
and medical businesses to the community, bringing important goods and
services to the citizens. These new business owners have identified several
reasons for locating commercial businesses into the City including:
• A rapidly growing population with attractive demographics
• Improvements to the CSAH 8 corridor
• High quality, well planned, and attractive development
• Lack of other similar businesses within close proximity
• Available land
The City should continue to identify strengths and opportunities. In addition, the
City should identify barriers to new business development and seek ways to
eliminate or minimize those barriers. The City should continue this effort by
asking existing business owners to identify barriers and opportunities though an
outreach survey.
Chapter 6 1 6-3
Economic Development Plan
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Identify Target Business Market
Based on the strengths and weaknesses identified for the City, the target
business market should be identified. Criteria should be established for desirable
businesses, including type of business, size of business, quality of business, type
of jobs, types of service. Separate parameters may be established for each
market sector including office, retail, industrial and medical.
So far, the EDA has discouraged the development of typical large, "big box,"
style retailers, but has encouraged the development of smaller neighborhood
style shopping centers. The EDA has encouraged and has been successful in
attracting manufacturing businesses that would create jobs that are desirable for
much of Hugo's population. The EDA has also recommended that the City
provide locations for many of the small home based businesses that are located
in some areas of rural Hugo. Such an area would allow for significant outdoor
storage of materials and lesser design standards to encourage the expansion of
small businesses within the City.
Guide Land Use for Target Business Market
The Land Use Plan Chapter identifies locations for future industrial, retail, and
office development. The land use plan should be used to guide new businesses
to suitable land for new business development. Land is identified within the land
use plan where businesses are likely to succeed with good access to
transportation, utilities, and proximity to the workforce. The City's website is
intended to become a resource for potential business owners who may wish to
locate on developed property. On the website, available commercial land in the
City will be listed, and through the listings, property owners may be contacted
about available space for sale or lease.
The City should provide areas for office and medical development that are
distinct from retail areas. Due to the City's support of life -cycle housing,
additional housing options are being provided for the senior population, which in
turn is creating a demand for additional medical development. In addition, much
of the new single-family residential development in the City is affordable only to
those earning higher incomes. Many of the professionals now living in the City
are creating a demand for professional office and service space. Identifying
specific areas for medical and office development will also preserve prime retail
space along high traffic corridors for retail development. The land use plan
includes a category for "business park" development that will be well suited for
office, medical, and light industrial uses along key transportation corridors.
Market the Ci y
The City should market its strengths and opportunities to desirable businesses.
Simply making the information available to the business community is the first
Chapter 6 _ 6-4
Economic Development Plan'
1 "'HU-
step. The City should begin preparing an annual economic report of activity
within the City. A new Economic Development page on the City's website should
provide helpful data such as demographic information, community
characteristics, information about the City's workforce, traffic counts, and listings
of available land or buildings. The information should be distributed whenever
possible.
The City should cooperate and share information with partners such as the Hugo
Business Association (HBA), the White Bear Area Chamber of Commerce, and
the state Department of Employment and Economic Development. The City
should continue to work with surrounding communities and with Washington
County to encourage the creation of an east metro economic development
strategy.
Establish Financial Incentives to Attract New „Business Development
The City should evaluate all incentives available for use by the City. Policies
should be implemented for the use of incentives, including the use of the City's
Tax Increment Financing Policy.
The City should evaluate other costs associated with the development or
operation of businesses within Hugo. Costs should be compared to other cities
and the fee structures or other costs should be reformulated where possible to
remain competitive.
Ensure that Infrastructure is Provided to Meet Business Needs
It is important for the City to implement the improvements identified on the City's
infrastructure plans illustrated in Chapters 8, 9, 10 and 11 of this document. The
important transportation connections and sewer and water improvements that are
necessary to accommodate existing and future businesses have been taken into
account and are shown in this comprehensive plan.
The BNSF rail line serving the Bald Eagle Industrial Park is an important
transportation element for existing businesses located there. The rail line should
be maintained as long as the businesses rely on it.
The City should encourage the eventual conversion of the rail line along TH 61 to
a transit corridor that may accommodate both freight and passengers.
Provisions for transit will provide businesses with expanded access to the area's
workforce. Higher intensity mixed use development and retail development
should be encouraged along the transit corridor. The City will cooperate with the
Rush Line Corridor Task Force to implement recommended improvements along
the corridor.
Chapter 6 6-5
Economic Development Ran
H,R
6
The transportation plan illustrates a future interchange at County Road 4 and I -
35E. The interchange is also identified on MnDOT's Inter -Regional Corridor Plan
for 1-35. The timing of the construction of this interchange is critical in
implementing the plans for business development in northern Hugo. The City
should continue to lobby for the accelerated construction of the interchange
though the 1-35 WIE Coalition.
The City will locate new commercial businesses where municipal utilities are
available. Urban services will be made available to the areas guided for
business development in accordance with the City's sewer and water plans.
The City will strive to ensure that telecommunications needs are met for new or
existing businesses. The City will evaluate how fiber optic lines or other
telecommunication technology can be extended and used in areas where
businesses are located or plan to locate.
Downtown Redevelopment
The City has adopted a redevelopment plan for downtown Hugo (Chapter 4).
The downtown plan strives to maintain the City's business core in downtown with
a traditional downtown urban format. For this to become possible,
redevelopment of structures in the downtown area must occur. The City has
purchased a number of properties in downtown along the east side of Highway
fit . As additional properties become available by willing sellers in this area, the
City will pursue purchases of those properties. The existing structures will be
removed, and the properties will be redeveloped by the City as retail and office
space. Multiple other property owners in the downtown area have expressed
interest in redeveloping their properties in a manner consistent with the
downtown plan. In order to facilitate that development, the City has approved a
Tax Increment Financing District to help ensure that development is feasible in
the downtown area.
Gateways
The new development along County Road 8 has established a quality
atmosphere at the major western entrance to the City. The attractive
development there helps create a good first impression and serves to define the
image of City. The City will expend extra effort to establish gateways that exude
a similar image of quality at all major entrances to the City, including the northern
and southern limits of Highway 61, and the western limit of County Road 4.
Promote Quality among New Businesses
The City will establish and implement development standards for new business
development, including architectural guidelines for retail development, standards
requiring quality building materials, and guidance for the preparation of site plans
Chapter 6 6-6
Economic Development Plan °-
that promote good land planning principles. Proper use of guidelines will ensure
that the desired businesses locate in the appropriate areas.
Retain Existing Businesses
The City will continue to partner with the HBA to identify the needs of existing
businesses. The EDA and the HBA should strive to maintain a sound local
business climate that encourages businesses to remain. The City will establish
and maintain mutually beneficial relationships between business owners,
members of the HBA and EDA by establishing open communication. City staff
and EDA members will regularly contact existing businesses, make site visits,
and prepare and distribute specific literature or surveys for existing businesses.
Businesses that are considering moving or expanding will be identified and the
City will work to understand barriers that discourage business expansion, and
assist businesses in overcoming those barriers. Technical or financial
assistance, when warranted, in the interest of maintaining jobs and creating new
jobs will be provided. The City will identify successful business retention efforts
within other communities and interview any businesses who decide to leave the
City to understand their rationale for departing.
6.5. IMPLEMENTATION
The Economic Development Authority will implement this plan though its goal
setting process each year. It is recommended that the EDA develop a multi-year
action plan outlining specific tasks for each calendar year. The EDA will
recommend new policies, changes in zoning regulations, or other measures to
ensure the effective implementation of the plan.
Chapter 6 6-7
Economic Development Plan ;
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Economic Development Plan
The following implementation strategies will be used to carry out the Economic
Development Plan.
Parks, Trails and Open Space Plan
The following implementation strategies will be used to carry out the Parks, Trails and
Open Space Plan.
ECONOMIC DEVELOPMENT PLAN (CHAPTER 6)
IMPLEMENTATION STRATEGIES
No.
Description
Timing
1
Strategic Plan. Update long-term strategic plan for economic
On-going
development within the City.
Ongoing
2
SWOT Analysis. Continue to identify strengths, weaknesses,
On-going
2
opportunities and threats to business retention and development.
3
Survey Business Owners. Conduct an outreach survey to
Short
business owners to identify barriers and opportunities.
Ongoing
4
Identify Target Business Market. Identify the desirable
Short
3
businesses using the SWOT analysis and survey results.
5
Market Hugo. Prepare and implement a marketing plan to attract
Short
and retain desirable businesses in Hugo. Collaborate with business
4
associations and neighboring communities on a regional strategy.
Ongoing
6
Incentives Policy. Create a policy for the use of financial
Short
incentives within the City.
Short
Parks, Trails and Open Space Plan
The following implementation strategies will be used to carry out the Parks, Trails and
Open Space Plan.
Chapter 13:. 13-5
Implementation Plan
e HIT
PARKS, TRAILS AND OPEN SPACE PLAN (CHAPTER 7)
IMPLEMENTATION STRATEGIES
No.
Description
Timing
1
Collaboration. Continue to work with other public, private and non-
profit groups and agencies to enhance the City's limited resources and
Ongoing
enhance the programs and facilities available to residents.
2
Maintain the Parks and Trails System. Maintain the quality of the
existing park and trail system and fund the replacement of buildings,
equipment and trails. Determine priorities and plan for short-term
Ongoing
funding needs through the annual review of the CIP.
3
Greenways. Establish Greenway Corridors in the City through
dedication of land as property develops or though land dedication by
Ongoing
property owners.
4
Trails. Complete the trail corridors shown on the Trail Plan.
Ongoing
5
Park Dedication Policy. Review the City park dedication policies and
ordinance to establish new park dedication requirement in compliance
Short
with State Law to provide for the park needs of new development.
Chapter 13:. 13-5
Implementation Plan
e HIT
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