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.
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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
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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
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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
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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
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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_
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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
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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.
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(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.
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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
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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
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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.
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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
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