Loading...
HomeMy WebLinkAbout2026-07-13 EDA Meeting Packet AGENDA MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING 5:30 P.M. Monday, July 13, 2026 City Hall, Council Chambers Pursuant to Minn. Stat. 13D.02, one or more commissioners may be participating remotely A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES 1. April 13, 2026 Economic Development Authority Meeting Minutes E. PUBLIC HEARING 1. Business Subsidy Policy a. Public Hearing b. 2026 Maplewood Economic Development Authority Business Subsidy Policy F. UNFINISHED BUSINESS None G. NEW BUSINESS 1. 2027 EDA Budget H. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at the Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK D1 MEETING MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITYMEETING 5:30 P.M. Monday, April13, 2026 City Hall, Council Chambers A.CALL TO ORDER A meeting of the Maplewood Economic Development Authority (EDA)was heldin the City Hall Council Chambers and was called to order at 5:30p.m. by President Abrams. B.ROLL CALL Marylee Abrams, PresidentPresent Rebecca Cave, Vice PresidentPresent Kathleen Juenemann, CommissionerPresent Chonburi Lee, CommissionerPresent Nikki Villavicencio,CommissionerPresent C.APPROVAL OF AGENDA CommissionerLeemoved to approve the agendaas submitted. Seconded by CommissionerJuenemannAyes – All The motion passed. D.APPROVAL OF MINUTES 1.December 8, 2025, Economic Development AuthorityMeeting Minutes CommissionerJuenemannmoved to approve the December 8, 2025 Economic Development AuthorityMeeting Minutes as submitted. Seconded by CommissionerCave Ayes – All The motion passed. E.PUBLIC HEARING None F.UNFINISHED BUSINESS None G.NEW BUSINESS 1.Election of Officers Assistant Executive Director Parrgave the staff report. April13, 2026 Maplewood Economic Development AuthorityMeeting Minutes 1 EDA Packet Page Number 1 of 12 D1 CommissionerCavenominated President Abramsas President until the first meeting of 2027. No additional nominations Ayes – All President Abramsnominated Commissioner Caveas Vice President until the first meeting of 2027. Commissioner Villavicencio nominated Commissioner Villavicencioas Vice President until the first meeting of 2027. No additional nominationsVia roll call: In favor of Commissioner Cave – President Abrams Commissioner Cave Commissioner Juenemann In favor of Commissioner Villavicencio – Commissioner Lee Commissioner Villavicencio Commissioner Cave prevails. CommissionerLeenominated CommissionerLeeas Treasurer until the first meeting of 2027. No additional nominations Ayes – All CommissionerLeenominated City Clerk Sindt as Secretary until the first meeting of 2027. No additional nominationsAyes – All President Abrams nominated Finance Director Rueb as Assistant Treasurer until the first meeting of 2027. No additional nominations Ayes – All 2.Habitat for Humanity Housing Discussion Assistant Executive Director Parrprovided background on the agenda item. Emily Kirkevold, Government Affairs Manager and Jessica Coyle, Real Estate Development Officer, with Habitat for Humanity gave the presentation and answered questions of the EDA. EDA Attorney Batty provided further information. No action required. 3.Business Subsidy Policy Assistant Executive Director Parrgave thestaff report. Executive Director Sable provided further comments. CommissionerCave moved to approve the 2026 Business Subsidy Policy. April13, 2026 Maplewood Economic Development AuthorityMeeting Minutes 2 EDA Packet Page Number 2 of 12 D1 Seconded by CommissionerVillavicencio Ayes – All The motion passed. 4.Economic Development Strategy Update Assistant Executive Director Parrgave thepresentation. The EDA shared comments. Executive Director Sable added additional information. No action required. H.ADJOURNMENT President Abramsadjourned the meeting at6:33p.m. April13, 2026 Maplewood Economic Development AuthorityMeeting Minutes 3 EDA Packet Page Number 3 of 12 E1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date July 13, 2026 REPORT TO: Michael Sable, Executive Director REPORT FROM: Danette Parr, Assistant Executive Director PRESENTER:Danette Parr, Assistant Executive Director AGENDA ITEM: Business Subsidy Policy a.Public Hearing b.2026 Maplewood Economic Development Authority Business Subsidy Policy Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Summary: As the Maplewood Economic Development Authority (EDA) continues to expand its role in economic development, adopting a business subsidy policy ensures compliance with state statue requirements and positions the city to pursue funding opportunities which require a business subsidy policy. Recommended Action: a.Hold the public hearing. b.Motion to approve the 2026 Maplewood Economic Development Authority Business Subsidy Policy. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Safety Sustainability Maintain strong financial health and stability Development Grow a vibrant and resilient buisness community The city supports the leveraging of resources and partnerships to meet the diverse economic development opportunities of the community. Having a business subsidy policy in place allows for clear expectations and alignment with resources. EDA Packet Page Number 4 of 12 E1 Background: On June 22, 2026, the Maplewood City Council held a public hearing and approved the same business subsidy policy, which is a requirement of the Minnesota legislature. Minnesota law requires that any city entity granting a business subsidy must establish criteria to be considered in processing, evaluating and reviewing applications before providing business subsidies for private development. In addition, many state agencies, such as the MN Department of Employment and Economic Development (DEED) require a city to have an up-to-date business subsidy policy before applications can be submitted for funding programs. The proposed policy is intended to align with current statutory requirements and identifies the EDA as an entity with granting authority. State statutes require that the EDA hold a public hearing prior to approving the policy. The criteria set forth in the 2026 Maplewood Economic Development Authority Business Subsidy Policy could be used in conjunction with other relevant policies of the city. If approved, the policy will provide guidance around offering financial assistance to support job creation, tax base growth, redevelopment, and spur long-term economic vitality. Attachments: 1. 2026 Maplewood Economic Development Authority Business Subsidy Policy EDA Packet Page Number 5 of 12 E1, Attachment 1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY POLICY (AdoptedinJuly2026) This business subsidy policy represents the criteria which will be used by the Maplewood Economic Development Authority (the “Grantor”) to evaluate business subsidy requests. I.PURPOSE The purpose of the Maplewood Economic Development Authority Business Subsidy Policy (the “Policy”) is to establish the criteria for the granting of business subsides. The criteria contained herein are in addition to the requirements and limitations set forth in the Minnesota Business Subsidy Act, Minnesota Statutes, section 116J.993 through 116J.995, as amended (the “Act”). An applicant who is not in good standing with the city regarding licenses, fees, code violations, or other city issues is ineligible for a business subsidy. The criteria set forth in this Policy shall be used as a guide in processing and reviewing the application and will be used in conjunction with other relevant policies of the city. The city will evaluate projects on a case-by-case basis, taking into consideration current policies, project criteria, available financial resources, and demand on city services or infrastructure in relation to the potential benefits from the project. Meeting this Policy criteria does not guarantee the award of business assistance for the project. Approval or denial of any project is not intended to set precedent for approval or denial of another project. The city may amend this Policy at any time. Amendments are subject to public hearing requirements contained in the Act. The city also has the right to deviate from this policy in accordance with the Act. II.DEFINITIONS OF BUSINESS SUBSIDY For the purposes of this Policy, “business subsidy” shall have the meaning given to the term in the Act. III.BUSINESS SUBSIDY CRITERIA The following criteria will be used in evaluating a request for a business subsidy: 1.Public Purpose. A business subsidy must be used to meet a public purpose. The public purpose may include but may not be limited to increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is specific and demonstratable. 2.Increase Tax Base. The Act provides that an increase in tax base cannot be the sole basis for generating a business subsidy. However, the city considers an increase in tax base to be a critical factor in granting a business subsidy. 3.Wage and Job Creation. The project provided a business subsidy must create a minimum of ten full-time equivalent jobs paying at least 200% of the State minimum wage in effect at the time the subsidy is granted unless the city determines that a lesser number satisfies the public purposes requirement or, as provided for in the Act, determines that the retention or creation of jobs is not a goal. EDA Packet Page Number 6 of 12 E1, Attachment 1 4. “Other” Tests. When the business subsidy is in the form of tax increment financing or tax abatement, the project must also satisfy the standards and criteria of the applicable statute. 5. Other Economic or Redevelopment Goals. If the creation of jobs is determined not to be a goal of a project (and by extension wages), the proposed business subsidy must achieve specific, tangible, and measurable goals related to one or more of the following: a. Encourage additional unsubsidized private development in the area, either directly or indirectly through “spin-off” development. b. Remove blight and/or encourage development of commercial and industrial areas in the city that result in higher quality development and private investment. c. Support a project that will improve the quality of life in the city by providing desirable goods or services and addressing an unmet demand in the community. d. Promote revitalization and redevelopment within the city. e. Focus on the creation of wealth through “high value investment” rather than on the number of jobs created. In granting a business subsidy, the city may deviate from the criteria outlined in this Policy if the reason for the deviation is documented in writing and included in the next annual report to the Minnesota Department of Employment and Economic Development. IV. APPLICATION PROCESS The applicant must complete and submit the city’s business subsidy application, the required application fee, and any additional information requested by the city pertaining to the project. The application fee covers the cost of the city’s outside financial analysis and the drafting of a business subsidy agreement by legal counsel. The applicant will be responsible for any additional costs beyond the initial application fee. All materials submitted to the city in connection with the business subsidy application shall become the property of the city and are subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The review process shall involve at least the following: 1. The city shall review the application materials to ensure: a. The completeness of the application, and b. Whether the application meets the goals and criteria of this Policy. 2. If the city determines the application is complete, a public hearing will be set. 3. At the time of the scheduled public hearing, staff will make a final recommendation to the Grantor regarding the approval or denial of the business subsidy application. The recommendation will be based on: a. Applicable credit analysis; b. Financial structure of the proposed project/application; c. Legal compliance of the project/application; and d. Other relevant factors as determined by the city. 4. The Grantor will conduct the public hearing, during which testimony will be taken from all interested parties. After the public hearing is closed, the Grantor will either approve or deny the business subsidy request. If the subsidy is approved, the EDA Packet Page Number 7 of 12 E1, Attachment 1 business and the Grantorwill enter into a business subsidy agreement. V.COMPLIANCE AND REPORTING 1.All assistance that meets the definition of a “business subsidy” shall be subject to the requirement of a public hearing. Any assistance that does not constitute a business subsidy will be evaluated in an appropriate manner. 2.Every recipient of a business subsidy must enter into a business subsidy agreement with the Grantor. The agreement must meet the requirements of the Act. 3.Both the recipient and the city must comply with the business subsidy reporting and monitoring requirements of the Act. 4.If a recipient fails within two (2) years of the benefit date as defined in the Act to meet the job and wage goals set forth in the business subsidy agreement, the recipient or its successors and assigns shall be liable to repay the city the assistance plus interest. The city may prorate repayment to reflect partial fulfillment of the goals set forth in the business subsidy agreement. The rate of interest charged must be set at no less than the implicit price deflator for government consumption expenditures and gross investment for local governments prepared by the Bureau of Economic Analysis of the United States Department of Commerce as provided in the Act. 5.The Grantor may, after holding a public hearing, extend the time for compliance with the business subsidy agreement job and wage goals by up to one (1) year. EDA Packet Page Number 8 of 12 For the permanent record: Meeting Date: 7/13/2026 Agenda Item E1, Additional Attachment G1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date July 13, 2026 REPORT TO: Michael Sable, Executive Director REPORT FROM: Joe Rueb, Assistant Treasurer Danette Parr, Assistant Executive Director PRESENTER:Joe Rueb, Assistant Treasurer Danette Parr, Assistant Executive Director AGENDA ITEM:2027 EDA Budget Action Requested:MotionDiscussionPublic Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Summary: The EDA Bylaws require the EDA to submit a budget annually to the city council for consideration and incorporation into the city’s annual budget and tax levy. Recommended Action: This item is for discussion purposes, and no action is necessary. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Safety Sustainability Cultivate a connected, engaged community Development Promote residential development and thoughtful redevelopment The city supports development and the leveraging of resources to expand the tax base while meeting the diverse needs of the community. In addition, the city promotes quality housing, commercial development and business growth. Background: The purpose of this discussion is to explore anticipated revenues and identify potential opportunities to leverage these resources to support the goals of the Economic Development Strategic Plan. Local Affordable Housing Aid (LAHA) LAHA funds are for the purpose of funding affordable housing projects and help organizations provide affordable supportive housing. EDA Packet Page Number 9 of 12 G1 In 2024 Maplewood received $221,506. In 2025 Maplewood received $587,609. In 2026 Maplewood will receive $596,073. Qualifying projects include: Emergency rental assistance for households earning less than 80 percent of area median income as determined by the United States Department of Housing and Urban Development. Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing; and Projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have incomes which do not exceed: o For homeownership projects, 115% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development o For rental housing projects, 80% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development Housing developed or rehabilitated with funds under this section must be affordable to the local workforce. Upcoming projects for LAHA funding: In April the city council approved a $300,000 grant to Twin Cities Habitat for Humanity to support the Beebe Meadows and Duluth Street projects, enabling the creation of five new affordable home ownership opportunities. Twin Cities Habitat for Humanity is also working with the city to solidify details for a future housing acquisition and rehabilitation program to support reinvestment in existing housing stock for long- term affordable home ownership. This scattered site affordable housing program will come for council consideration in September. EDA Levy In 2025, council approved a resolution certifying an EDA property tax levy starting in 2026. This dedicated levy provides a mechanism to fund strategic land acquisition, demolition, and re- development opportunities, along with other EDA economic development initiatives. City staff are recommending a 0% levy change for 2027. Tax Increment Financing (TIF) Pooling The legislature amended 2013 law, Chapter 143, Article 9, Section 21, concerning specific TIF rules to redevelopment districts in Maplewood, specifically related to the “3M Renovation and Retention Project Area.” The amended legislation allows TIF Pooling to provide $1 million in funds to assist with redevelopment opportunities in the North End of Maplewood. TIF Administrative Fees In Minnesota, TIF administrative expenses are allowed to be reimbursed for services such as bond counsel and fiscal consultant fees and the development authority's operating costs (employee EDA Packet Page Number 10 of 12 G1 salariesand overhead) per Minn. Stat. § 469.174, subd. 14. For most districts, the limit is 10 percent of the lesser of the (1) expenditure authorized in the TIF plan or (2) the district's tax increments (property taxes paid by captured value only)per Minn. Stat. § 469.176, subd. 3. Interfund Loan In 2019, the council approved an interfund loan to finance the purchase of the Moose Lodge. The interfund loan was structured with a simple interest calculation at a rate of 3% annually. The repayment schedule included interest payments beginning in 2019 and principal payments beginning in 2024. The loan balance as of December 31, 2025, was $783,875.31. Housing Trust Fund/State Grant: The recently established Housing Trust Fund and MN Housing matching grant will allow $525,000 to be invested in housing rehabilitation efforts for qualified Maplewood homeowners. The city continues to work with NeighborWorks to provide low interest loans to support housing rehabilitation for qualified residents. Recently the program has seen an increase in applications and closed on its first loan for approximately $20,000. It’s anticipated that a number of loans will be closed over the coming month. Many of the revenue funding sources have restrictions on how they can be utilized and how they must be administered. In the case of an EDA levy, the revenue can be more broadly utilized to meet EDA goals at any given time. Attachments: 1.Financial Management Plan EDA Packet Page Number 11 of 12 G1, Attachment EDA Packet Page Number 12 of 12