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HomeMy WebLinkAbout2009 05-28 City Council Manager Workshop PacketAGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:00 P.M. Monday, May 28, 2009 Council Chambers, City Hall A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS E. NEW BUSINESS 1. Discussion of Economic Development Initiatives a. Creation of Economic Development Authority b. Need for Support on Gladstone — Phase 1: Potential Loss of Met Council Grant F. ADJOURNMENT Work Session Agenda Item E1 AGENDA REPORT TO: City Manager, Jim Antonen FROM: Charles Ahl, Assistant City Manager /Public Works Director SUBJECT: Discussion of Economic Development Authority a) Creation of Economic Development Authority b) Need for Support on Gladstone — Phase 1; potential loss of Met Council Grant DATE: May 20, 2009 INTRODUCTION The City of Maplewood has maintained a minimal involvement in economic development activities on a formal basis during its development. A number of years ago [10 +], Council members and staff indicated that Maplewood did not `need' to have an economic development initiative because development and redevelopment occur here without major City involvement. This item has been placed on the Work Session agenda as a item for discussion between staff and the Council on whether a policy of economic development and redevelopment should be prepared and whether the City Council is supportive of creating an Economic Development Authority (EDA). A report on the current status of the Gladstone Phase I project and the need for support to maintain our grant will be reviewed. No action will be requested of the Council, although it will be suggested that the Council direct the staff to prepare the necessary ordinance to prepare an EDA. DISCUSSION The purpose of this item is to review current development and redevelopment needs in Maplewood. While certainly the economic recession has slowed development to near nothing in 2009, the Council has seen a number of projects request City support and various local financing that encourage development objectives that may have been better handled through an EDA. The Council approved a TIF plan for the Gethsemane project in 2008 that could have been considered through an EDA to possibly achieve a more advantageous position. The Gladstone — Phase I improvements was approved without City involvement in the project. The developer was unable to secure financing with the plan that was submitted. The developer has been foreclosed on his purchase and the bank currently is looking to market the property. All interest in the property has included a request for City involvement in helping redevelop the site through the use of TIF funds. Attached is a letter from the Metropolitan Council that indicates that our grant is tied to a potential development and that if we cannot secure that development soon, we will need to forfeit those grant funds of $1.8 million. One possible scenario for support is being discussed with some potential developers and is attached as one scenario. Under that plan, the developer would receive some City support through the use of TIF funds, in exchange for the developer agreeing to assessments. This would allow assistance from the project with the developer receiving pay- as -you- go TIF to pay assessments and an additional $1.0 million to make the project viable. As noted, the developer would agree to pay for improvements to The Savanna, in exchange for guaranteeing TIF funds are available if they improve the site. It is also suggested that the Council could expand some of the TIF district to allow some of the funds [potentially up to 20 %] to be used for other City initiatives such as the Fire Training Facility or energy efficiency projects like a wind turbine. We continue to discuss this proposal with potential developers, although without Council support for considering TIF, it is very likely that we will be unsuccessful in getting our grant extended. Council direction on this item is requested. Packet Page Number 2of14 EDA CREATION PAGE TWO DISCUSSION (continued) The creation of an Economic Development Authority (EDA) would likely involve the City Council members being the members of the EDA, only wearing "different hats ". The EDA ordinance would be similar to a Port Authority or HRA, in that property ownership would be allowed for the purposes of development activities. As the City Council, the members should not be holding taxable land for other than public use purposes. The EDA would operate as a separate entity, although many communities with an EDA, elect one member of the Council to be the EDA president, and hold the EDA meetings as part of their regular Council meetings. They simply temporarily adjourn the regular meeting of the Council for the purpose of conducting an EDA meeting, the EDA president calls the EDA meeting to order, business is conducted, the EDA adjourns and the meeting is returned to the Mayor for the business of the regular meeting. From an administrative standpoint, it is likely that an Economic Development Planner would be established from one of our current planning staff and the duties of Economic Development Director would likely be assigned to one of the current Department Heads. There is a potential land option that is currently being explored by the staff. A parcel exists along the Castle Avenue project on the northerly end of Van Dyke Street at Castle Avenue. This vacant parcel was originally purchased for public purposes, but with the new roundabout on Castle Avenue, the property is available for development. An appraisal has set the value in excess of $400,000 and a local developer is interested in this land. Assuming a sale and development, the $400,000 could be the initial "seed money" for other economic development activity in the City. Staff has been in contact with developers looking at parcels near the TH 36 — English intersection, at County Road C and White Bear Avenue and at the TH 61- Beam area that an EDA may wish to become involved to help facilitate the development of these vacant parcels into commercial — industrial improvements. RECOMMENDATION It is recommended that the City Council discuss the creation of an Economic Development Authority and provide direction to the staff on proceeding with consideration. The Council should also indicate interest in optional financing alternatives for the Gladstone — Phase I project to enhance development options to protect the Metropolitan Council Livable Communities grant. Attachments: 1. Metropolitan Council Letter on Livable Communities Grant 2. The Shores Alternative Financing Plan Packet Page Number 3of14 I" Metropolitan Council A May 13, 2009 Ms. Shann Finwall, AICP Environmental Planner City of Maplewood 1830 County Road B East Maplewood, MN 55109 Re: Gladstone LCDA Grant (SG006-168) Ms. Finwall: We have recently been in communication with you regarding the status of the Gladstone Neighborhood Redevelopment grant, number SG006-168. From the information you have provided, it appears the Project will not be completed by the time the grant expires on December 31, 2009. This grant has already received a one-year administrative extension. Given these circumstances, you may not expend any funds from this grant until the City demonstrates that the Project, consisting of the grant-funded activities and the senior housing development, will be completed within the timeline of the current grant agreement. The potential for any further grant agreement extension is unlikely. The grant agreement includes both the grant-funded activities and the residential component described in the grant application. The information you have provided has indicated the owner/developer has lost site control of the project site, and the senior housing development envisioned for the site appears to be in question. To confirm the status of the Gladstone Project, could you please provide the Metropolitan Council with the following information: 1) Previous correspondence indicated that the public improvements, with the exception of some landscaping, could be completed by the current grant expiration date. Does this include all proposed grant-funded activities, the roundabout, reconstruction and improvements of Frost Avenue and the stormwater treatment pond? 2) Describe any significant progress made since your last correspondence with Livable Communities staff in regaining site control and obtaining a new developer to complete the senior housing development within the current term of the grant. Although some of the information requested above may have been previously submitted, a complete response is needed to confirm the status of the grant. Again, no costs may be incurred under the grant agreement until confirmation of this information. www.metrocouncii.org 390 Robert Street North • St. Paul, MN 55101-1805 • (651) 602 -1000 • Fax (651) 602-1550 * TTY (651) 291-0904 An Equal Opportunity Employer Packet Page Number 4 of 14 Ms. Shann Finwall May 13, 2009 Page 2 We look forward to your response. S 1h e Iv erel., Paul Bums, AICP Manager, Livable Communities Program Cc: Deb Jensen Joanne Barron Packet Page Number 5 of 14 The Shores Financing April 30, 2009 Current Planned Assessments: • Roundabout - $100,000 • Frost Ave Improvements - $150,000 • Storm Water Improvements - $175,000 • Overhead Utility Burial - $125,000 • Sanitary Sewer /Water Main - $ 75,000 • Total $625,000 • No TIF Support for these Possible Items [for May Council Discussion] • TIF Pay -as- you -go $2,500,000 Proposed Assessments [Assmt term and TIF term are the same] • Savanna Improvements $500,000 • Roundabout - $100,000 • Frost Ave Improvements - $150,000 • Storm Water Improvements - $175,000 • Overhead Utility Burial - $500,000 • Sanitary Sewer /Water Main - $ 75,000 • Total Assessment $1,500,000 Packet Page Number 6of14 Supplemental Agenda Report DATE: May 20, 2009 TO: James Antonen, City Manager FROM: H. Alan Kantrud, City Attorney SUBJECT: Maplewood EDA discussion for Workshop INTRODUCTION Assistant City Manager Ahl has prepared a report regarding the specifics of what an EDA may do for the City going forward and has provided a nice summary of the uses for one should the Council decide to move forward with this concept. DISCUSSION Enclosed herewith please find an enabling ordinance for the City as well as a sample of bylaws to operate with /by. I have also provide each Council member with a portion of the League's Handbook that addresses the subject. [attachment available for any interested individual from the office of the City Attorney] A wonderful resource is also the EDAM site: www.edam.org The resource link has connections to many Cities that have been operating with EDA's for years. I am also attaching one of the best resources on the issue that the Council may find helpful from the staff at Springstead, a regular consultant with the City. It is a longish manual, about 80 pages, so I will let you decide how best to or whether to enclose /include it to Council for the workshop_ Packet Page Number 7of14 BYLAWS OF MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I — THE AUTHORITY Section 1. Name of Authority The name of the Authority shall be the "Maplewood Economic Development Authority" (which may sometimes be referred to as the "EDA" or the "Authority "), and its governing body shall be called the Board of Commissioners (Board). The Board shall be the body responsible for the general governance of the Authority and shall conduct its official business at meetings thereof. Section 2. Seal of Authority. The Authority shall have an official seal, as required by Minnesota Statutes, Section 469.096, Subdivision 1. Section 3. Offices of Authority. The offices of the Authority shall be the Maplewood City Hall. ARTICLE II — OFFICERS Section 1. Officers The officers of the Authority shall be a President, a Vice - President, a Treasurer, an Assistant Treasurer, and a Secretary. The President and the Vice - President shall be members of the Board and shall be elected annually, and no Commissioner may be both President and Vice- President simultaneously. The Assistant Treasurer and Secretary need not be members of the Board. Section 2. President. The President shall preside at all meetings of the Board. Except as otherwise authorized by resolution of the Board, the President and the Secretary (the Vice - President, in the Secretary's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority, then the President and Treasurer shall sign all checks. Section 3. Vice- President. The Vice- President shall perform the duties of the President in the absence or incapacity of the President; and in case of the resignation or death of the President, the Vice - President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The Secretary shall also have such additional duties and responsibilities as the Board may from time to time and by resolution prescribe. Section 5. Treasurer. The Treasurer shall have the care and custody of all funds of the Authority and shall deposit the same in the name of the Authority in such bank or banks as the Board may select. The Treasurer (along with the President) shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Board. The Treasurer shall keep regular books of accounts showing receipts and expenditures Packet Page Number 8of14 and shall render to the Board, at least annually (or more often when requested), an account of such transactions and also of the financial condition of the Authority. The Assistant Treasurer shall act as the Treasurer's agent and assistant to perform the above- described duties, subject to the Treasurer's approval thereof. Section 6. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Board or the bylaws or rules and regulations of the Authority. Section 7. Vacancies. Should the office of the President, Vice - President, Treasurer, Assistant Treasurer, or Secretary become vacant, the Board shall elect a successor at the next regular meeting, or at a special meeting called for such purpose, and such election shall be for the unexpired term of said officer. Section 8. Additional Personnel. The Board may from time to time employ such personnel as it deems necessary to exercise its powers, duties, and functions. The selection and compensation of such personnel shall be determined by the Board. ARTICLE III — MEETINGS Section 1. Regular Meetings. The regular meetings of the Board shall occur according to a meeting schedule, if any, adopted or revised from time to time by resolution of the Board. Section 2. Special Meetings. Special meetings of the Board may be called by the President or any two members of the Board for the purpose of transacting any business designated in the call. The call for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Board or may be mailed to the business or home address of each member of the Board at least two (2) days prior to the date of such special meeting. At such special meeting no business shall be considered other than as designated in the call, but if at least four members of the Board are present at a special meeting, any and all business may be transacted at such special meeting. Notice of any special meeting shall be posted and/or published as may be required by law. Section 3. Quorum. The powers of the Authority shall be vested in the Board. Three Commissioners shall constitute a quorum for the purpose of conducting the business and exercising the powers of the Authority and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the Board upon a vote of a majority of the Commissioners present. Section 4. Order of Business. At the regular meetings of the Board the following shall be the order of business: (a) Roll call. (b) Approval of the minutes of previous meeting. (c) Bills and communications. (d) Reports. (e) Unfinished business. 2 Packet Page Number 9of14 (f) New business. (g) Adjournment. All resolutions shall be written or transcribed and shall be retained in the journal of the proceedings maintained by the Secretary. Section 5. Adoption of Resolutions. Resolutions of the Board shall be deemed adopted if approval by not less than a simple majority of all Commissioners present, unless a different requirement for adoption is prescribed by law. Resolutions may but need not be read aloud prior to vote taken thereon and may but need not be executed after passage. Section 6. Rules of Order. The meetings of the Board shall be governed by the most recent edition of Robert's Rules of Order. ARTICLE IV — MISCELLANEOUS Section 1. Amendments to Bylaws. The bylaws of the Authority shall be amended only by resolution approved by at least three of the members of the Board. Section 2. Fiscal hear. The fiscal year of the Authority shall coincide with the fiscal year of the City of Maplewood. Packet Page Number 10 of 14 ORDINANCE NO: AN ORDINANCE ESTABLISHING THE MAPLEWOOD AREA DEVELOPMENT AUTHORITY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA ORDAINS: SECTION 1. Section 315.01. Definitions Subdivision 1. Common terms As used in this Ordinance, the terms defined have the meanings given them. Subd 2. "Authority" - an Economic Development Authority as defined by Minnesota Statutes 469.090 through 469.1082. Subd. 3. "City" - the City of Maplewood, Minnesota. Subd. 4. "Council" - the duly elected governing body of the City of Maplewood, Minnesota. Subd. 5. "The Act" - Minnesota Statues 469.090 through 469.1082. Subd. 6. "Enabling Resolution" - this Ordinance. SECTION 2. Section 315.03. Establishment An Economic Development Authority is established which shall have all of the powers, duties and responsibilities of an Economic Development Authority pursuant to Minnesota Statues 469.090 through 469.1082. It shall be the role and responsibility of the Authority to carry out economic and industrial development and redevelopment within the Maplewood area pursuant to Bylaws as may be adopted by the Authority. It shall confer with other City departments, and other public and private groups on matters relating to business and industrial development and periodically survey the area's industrial and commercial climate and report regularly to the Council. SECTION 3. Section 315.05. Name The Economic Development Authority created by the Enabling Resolution shall be known as the Maplewood Area Development Authority. SECTION 4. Section 315.07. Members The Authority shall consist of the Mayor and City Manager who shall serve as Ex- Officio Members and five other Packet Page Number 11 of 14 Members, one of whom shall be a member of the Council. The five other Members are appointed by the Council. Those initially appointed are appointed for terms of two, three, four, five, and six years respectively. Thereafter, Members are appointed for six -year terms. The Members shall be paid compensation as established by the Council. Members may be reimbursed for expenses pursuant to City reimbursement policies. SECTION 5. Section 315.09. Administration Subdivision 1. Bylaws The Authority shall adopt Bylaws and rules of procedure for administration of its affairs. Subd. 2. Officers The Authority shall elect a President, a Vice President, a Secretary and an Assistant Treasurer on an annual basis. The City Manager or designee shall serve as the Treasurer. A Member shall not serve as President and Vice President at the same time. The other offices may be held by the same Member. The Secretary need not be a Member. Subd. 3. Professional service contracts The Authority may employ technical experts and professionals as deemed necessary. Their salaries and duties shall conform to City policy. Subd. 4. Duties and powers The Officers shall have the duties and powers of their offices and other powers and duties as may be delegated by the Authority, the Bylaws, and the Act. Subd. 5. Meetings The Authority shall meet quarterly and at such other times as necessary. SECTION 6. Section 315.11. Modification All modifications to the Enabling Resolution must be by Ordinance and must be adopted after notice and Public Hearing conducted as required for the original adoption of the Enabling Resolution. SECTION 7. Section 315.13. Report to Council The Authority shall submit a written report of its activities and recommendations for modification of the Enabling Resolution to the Council at least annually. SECTION 8. Section 315.15. Director The City's Community Development Director shall attend all meetings of the Authority, shall serve as a consultant and advisor to the Authority and shall mare quarterly reports to the Council. SECTION 9. Section 315.17. Conflicts of Interest Except as authorized by Packet Page Number 12 of 14 Minnesota Statute 471.88, a Member, Officer or employee of the Authority may not have a substantial conflict of interest, in projects undertaken by the Authority. SECTION 10. Section 315.19. Budget Subdivision 1. Fiscal budget The Authority shall prepare and submit to the Council a detailed budget. A special fund shall be established and designated as the "Development Authority Fund." The Council shall appropriate to the fund money it deems necessary for Authority purposes. This shall constitute the budget of the Authority. All payments drawn on the account of the Authority shall be by written statement signed by two officers of the Authority, directing the City Manager to prepare and deliver payment. All expenditures shall be consistent with the operation of the Authority pursuant to this Ordinance and Minnesota Statutes. Subd. 2. Audit All financial records of the Authority shall be prepared, audited, and filed with the Council. SECTION 11. Section 315.21. Schedule of powers Subdivision. 1. Development districts The Authority may create and define the boundaries of economic development districts and use the powers granted to carry out economic development in these districts. Subd. 2. Acquire property The Authority may acquire, by lease, purchase, devise or through condemnation proceedings, title in property to create economic development in these districts. Property acquired, leased, owned, controlled, used or occupied by the Authority for any of the purposes of Section 469.101 of Minnesota Statutes is for public governmental and municipal purposes and is exempt from taxation by the state or its political subdivisions. The exemption from property taxes only applies while the Authority holds the property for its own purpose. Subd. 3. Options The Authority may negotiate and acquire options to purchase, sell or lease property for the purpose of economic development. Subd. 4. Contracts The Authority may make contracts for the purpose of economic development. Subd. 5. Limited partnerships The Authority may become a limited partner in a partnership. Subd. 6. Rights and easements The Authority may acquire rights or easements for a term of years or perpetually. Packet Page Number 13 of 14 Subd. 7. Receive public property The Authority may accept land, money or other assistance, whether by gift, grant, loan or otherwise in any form from federal, state, local government, any agency of either or a local division of state government. Subd. 8. Public facilities The Authority may operate, maintain a public parking facility, housing facility or other public facilities to promote economic development in the area. Subd. 9. Other powers The Authority shall have such other powers as authorized and described in the Act. SECTION 12. Section 315.23. General obligation and revenue bonds The Authority may issue general obligation bonds or revenue bonds after receiving the approval and authorization by four - fifths vote of the Council and in accordance with the provisions of the Act. SECTION 13. This Ordinance shall take effect and be in force upon passage and publication. Adopted by the City Council this Packet Page Number 14 of 14