HomeMy WebLinkAbout2014.10.14 EDA Agenda PacketAGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
TUESDAY, OCTOBER 14, 2014
5:00 PM
5:00 pm 1. Call to Order
5:01 pm 2. Roll Call
5:02 pm 3. Oath of Office
• Cindy Petty
5:03 pm 4. Approval of Minutes
• EDA Meetings of September 9, 2014
5:04 pm 5. Discussion on Marketing
5:45 pm 6. Discussion on Industrial Properties and the Thommes
and Thomas Property
6:20 pm 7. Update on Downtown Redevelopment
6:30 pm 8. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
TUESDAY, OCTOBER 14, 2014
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the September 9, 2014, EDA meetings as
presented.
5. Discussion on Marketing
At its September meeting the EDA discussed the 2030 Comprehensive Plan
implementation items and the EDA goals for 2014. The EDA discussed marketing as one
of its top goals. Staff has provided an over of the current marketing efforts and would like
to discuss others the EDA would like to accomplish.
6. Discussion on Thommes and Thomas Property
Staff will provide the EDA with the inventory of industrial lots and building available
and would like to discuss the City's role in development.
At the September meeting the EDA discussed the Thommes and Thomas property on
165'3' Street being for sale. The realtor had contacted staff asking if the City would be
interested in buying the property. In 2009, the EDA discussed the purchase of the
property and made a motion to not purchase the property. Staff recommends the EDA
discuss purchasing the property at the meeting.
7. Update on Downtown Redevelopment
Staff will provide the EDA with an update on downtown redevelopment.
MINUTES FOR THE EDA MEETING OF SEPTEMBER 9, 2014
Weidt called the meeting to order at 5:00 pm.
PRESENT: Klein, Gallivan, Houle, Denaway, and Weidt
ABSENT: Puleo
STAFF: Bryan Bear, City Administrator
Rachel Juba, Planner
APPROVAL OF MINUTES FOR THE EDA MEETING OF AUGUST $ 2014
Klein made motion, Houle seconded, to approve minutes for the EDA meeting of August 8,
2014.
All ayes. Motion carried.
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 was present at the meeting to
provide the EDA with an update on the marketing work that has been completed to date.
Mr. Bergeson stated that Jeff Houge will no longer be involved in the marketing efforts of the
City owned property, but will still be involved in some capacity. Mr. Bergeson will be the main
contact.
He stated that he has been in contact with at least 10-1.2 parties to talk to them about the
property. He stated that will continue to make contact with restaurateurs and other commercial
developers.
Commissioner Denaway ask how he will fill the gap of Mr. Houge's commercial real estate
experience. Mr. Bergeson stated that he will still have Mr. Houge involved, but he will be doing
most of the marketing. He stated that he has been doing more commercial real estate in the last
year and a half.
Commissioner Houle asked Mr. Bergeson to keep a log of who he contacts and who contact him
and provide to the EDA.
Weidt stated that is was disappointed with the last update and had a feeling there was something
going on behind the scenes, since Mr. Houge was not there. He encouraged Mr. Bergeson to
continue moving forward and asked him to come back to provide the EDA with an update in
November.
RECAP OF MICRA 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 asked the EDA if they would like to continue visiting businesses and how often.
The EDA agreed that they would like to continue to conduct business visits. They agreed to try
to do them bi-monthly.
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 provided an overview of the section and
what items the EDA has completed.
Staff presented on how the City has implemented the items that were identified in the economic
development section of the 2030 Comprehensive Plan. These items include, identify a target
market, marketing, financial incentives, infrastructure needs, downtown redevelopment,
gateways, promoting quality among businesses, and retention of businesses. It was in staff s
opinion that the EDA done a good job accomplishing the implementation items. Staff also
reviewed the EDA's goals for 2014.
Commissioner Klein stated that the EDA should look into a business incubator for starter
companies.
Commissioner Denaway agreed that the EDA has done a good job with the things they can
control. He stated that at some point the City may want to look into a new location for an
industrial park. He also stated that staff may want to look into any successes from GreaterMSP,
but we was not aware of much.
Commissioner Klein asked if staff has been in contact with the utility companies about locations
for a data center. Staff stated they have made contact with them and have information to provide
to anyone that may be interested in locating a data center.
President Weidt stated that on our land use plan we have areas that are guided for industrial. It
may be sooner rather than that there may be a need for more land for industrial. At that time it
would be good to evaluate the feasibility a new industrial park.
City Administrator, Bryan Bear, stated that staff was recently contacted by the realtor of the
Thommes and Thomas property along 1656' Street about purchasing the property. At the time,
the realtor did not state a purchase price. If the EDA is interested staff can get more information
and provide it to the EDA. The EDA agreed they would like to discuss it at a later meeting. The
EDA also stated that they would like an update on the industrial properties that are available.
The EDA agreed that marketing was the number one items on their list to accomplish and
thought more could be done. The discussed gateway signs at the entrances of Hugo.
UPDATE ON DOWNTOWN REDEVELOPMENT
Staff stated that the Hardwood Creek Trail from 145b Street to 140th Street would be extended
this Fall starting on September 15th.
O'Reilly's Auto Parts purchased the property located at 14777 Forest Boulevard (old Ricci's
Saloon Site) and staff is expecting a site plan application to follow.
The Hugo Good Neighbors Food Shelf purchased a property in the Peloquin Industrial Park and
will be submitting a site plan application soon.
ADJOURNMENT
Klein made a motion, seconded by Gallivan, to adjourn at 6:15 P.M.
All ayes. Motion carried.
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Memorandum
To: Hugo Economic Development Authority (EDA)
From: Rachel Juba, Planner
Date: October 10, 2014, for EDA Meeting October 14, 2014
Re: City Marketing Efforts
At its September meeting the EDA discussed the 2030 Comprehensive Plan
implementation items and the EDA goals for 2014. The EDA discussed marketing as one
of its top goals. Staff has provided an over of the current marketing efforts and would like
to discuss others the EDA would like to accomplish.
CITY MARKETING EFFORTS
Economic Development Section of the City Website
Ove the past few years the City has updated its website and provided a section dedicated
to economic development. The section provides the following information:
Economic Development Authority (EDA)
Marketing Flyers
• Community profile, demographics, economic development, consumer
spending, and housing,
• Development Fee and Property Tax Compare Analysis
Development Opportunities
Commercial. and Industrial Property for Sale and Lease List
EDA Annual Reports
Downtown Redevelopment and Tax Increment Financing District (TIF)
Business Resources
Market Downtown
The City contracted with a realtor to market the City owned property in downtown. Staff
continues to meet with and reach out to interested parties.
Community Videos
Last summer the City completed community videos of Hugo. The videos include a
welcome segment, as well as, economic development and parks and recreation. This are
showcased on our City website on the front page.
Partnering with the Hugo Area Business Association (HBA) and White Bear Area
Chamber (WBAC)
The City has been partnering with the HBA and WBAC for several years. A lot of the
partnering with the HBA was from the implementation recommendation of the Business
Retention and Expansion Program (BR&E).
The City provides a welcome bag to new resident that includes information on Hugo, as
well as, a coupon folder from the HBA.
Washington County Economic Development Strategic Plan
Hugo has played a large role in the Washington County Economic Development Strategic
Plan. Staff attended the meeting that formulated the plan and the consultant held a
workshop at City Hall with the EDA and HBA to come up with action items. Most of the
action items within the plan were discussed that that workshop.
Greater MSP
The City has provided Greater MSP with a spreadsheet of information they requested for
a data center location. They stated the spreadsheet would be available to parties that are
interested in locating a data center in Minnesota. Greater MSP also sends out emails with
information on businesses that want to locate in Minnesota and their location needs. If
there is a property in Hugo that meets the criteria, staff emails them the property listing.
CONCLUSION
The items above are the marketing efforts that the City has been completing over the past
few years.
Staff would like the EDA to discuss these items and provide staff with other ideas for
marketing efforts.
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Rachel Juba
Subject: FW: Hugo 90 Acres.pdf
-----Original Message -----
From: Jon Rausch [mailto:Jon.Rausch@cushwakenm.com]
Sent: Wednesday, September 10, 2014 11:50 AM
To: Bryan Bear
Cc: Rachel Juba
Subject: RE: Hugo 90 Acres.pdf
Bryan:
E
The Benicks would sell for $50,000 per upland useable acre. They could even do a staged takedown like some other
cities are doing.
Thank you,
JR
Jon Rausch CCIM, SIOR
Executive Director
Brokerage Services
3500 American Blvd. W., Suite 200
Minneapolis, MN 55431
P 952.893.8251
C 612.685.8288
F 952.893.3629
E jon.rausch@cushwakenm.com
www.landmnwi.com
Please consider your environmental
responsibility before printing this email.
-----Original Message -----
From: Bryan Bear [mailto:BBear@ci.hugo.mn.us]
Sent: Wednesday, September 10, 2014 8:34 AM
To: Jon Rausch
Cc: Rachel Juba
Subject: RE: Hugo 90 Acres.pdf
Hi Jon,
We looked at this site a few years ago with our EDA. At that time they decided the city shouldn't be acquiring or
developing additional property. There could be a different perspective now, and I'd be willing to have them take
another look at it. It wouldn't be for another month or two. Do you have the current asking price?
I
Bryan
-----Original Message -----
From: Jon Rausch [mailto:Jon.Rausch@cushwakenm.com]
Sent: Friday, September 05, 2014 3:59 PM
To: Bryan Bear
Subject: Hugo 90 Acres.pdf
Brian
Would the city consider buying part or all of the Benick property?
JR
Jon Rausch CCIM, SIOR
Executive Director
Brokerage Services
3500 American Blvd. W., Suite 200
Minneapolis, MN 55431
P 952.893.8251
C 612.685.8288
F 952.893.3629
E jon.rausch@cushwakenm.com
www.landmnwi.com
Please consider your environmental
responsibility before printing this email.
MINUTES FOR THE EDA MEETING OF AUGUST 10, 2009
EDA Vice President Phil Klein called the meeting to order at 8:30 am.
PRESENT: Jan Arcand, Jim Bever, Torn Denaway, Mike Granger Phil Klein, Brian Thistle
and Fran Miron
ABSENT: None
CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development
Director Bryan Bear, Associate Planner Rachel Simone, and Shayla Syverson, Economic
Development / Parks Intern
APPROVAL OF MINUTES FOR THE EDA MEETING OF JULY 20, 2009
Denaway made motion, Klein seconded, to approve the minutes for the EDA meeting of July 20,
2009.
All ayes. Motion carried.
DISCUSSION ON OFFERS TO SELL PROPERTY LOCATED ON 165TH STREET
On Thursday, May 14, 2009 staff met with the property owners in the 165th Street and
Highway 61 area. The meeting was to discuss the possibility of another industrial park in that
area. On the 2030 land use plan the area is shown as industrial. At the meeting some of the
property owners in the area were interested in selling. These property owners continue to
market their property for sale. The property owners thought the City may have an interest in
buying the property and followed up with an offer to sell. Staff recommended the EDA
discuss the offers to sell.
Miron talked about the meeting with the property owners and the scenarios that were
presented to them on how the property could be developed. Granger talked about the
proposed land use for the site and that an industrial park will be a good fit once city services
are available to the site. Miron also talked about the reasons the City acquires property and
felt that the property would likely develop on its own.
Miron made a motion, seconded by Granger, to recommend to the City Council that a letter
be sent to the listing agent stating that the City is not in the position to purchase the
properties at this time.
UPDATE ON DOWNTOWN REDEVELOPMENT
The CD Director updated the EDA on downtown redevelopment in the City. He talked about
the Carpenters Restaurant redevelopment project and how the changes to the SAC/WAC fee
structure lowered the cost of the connection to City sewer and water for the proposed
building. He also talked about the improvement plans for Highway 61 being delayed until
spring. Granger stated that the City should work with the property owner to demolish the
antique building.
The CD Director stated that 61 Stop will be reopening with new owners in September. He
also talked about the selling price of the Ricci's property has gone down.
LTJ