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HomeMy WebLinkAbout2013-10-09 HEDC Packet AGENDA CITY OF MAPLEWOOD HOUSING AND ECONOMIC DEVELOPMENT COMMISSION Wednesday, October 9, 2013 7:00 P.M. Council Chambers -Maplewood City Hall 1830 County Road B East 1.Call to Order 2.Roll Call 3.Approval of Agenda 4.Approval of Minutes: a.September 11, 2013 5. New Business: a.Reviewand update ofLoan Program Application, Larkin Dance Studio 6.Unfinished Business: 7.Visitor Presentations: 8.Commission Presentations: 9.Staff Presentations: a.Development Summary (No Report) 10.Adjourn MINUTES OF THE HOUSING AND ECONOMIC DEVELOPMENT COMMISSION 1830 COUNTY ROAD B EAST, MAPLEWOOD, MINNESOTA 7:00 P.M., WEDNESDAY,SEPTEMBER 11, 2013 1.CALL TO ORDER A meeting of the Commissionwas held in the City Hall Council Chambers and was called to order at 7:01p.m.byChairperson Ulrich. 2.ROLL CALL Commissioners Gary Kloncz, Vice-ChairpersonPresent Mark Jenkins, CommissionerPresent Jennifer Lewis, CommissionerPresent Joy Tkachuck, CommissionerPresentat 7:02 p.m. Beth Ulrich, ChairpersonPresent Dennis Unger, CommissionerPresent Warren Wessel, CommissionerPresent Staff Michael Martin, Planner Melinda Coleman, Assistant City Manager, Community Development Director 3.APPROVAL OF AGENDA Commissioner Jenkins added 9. a. Introduction of Melinda Coleman. CommissionerJenkinsmoved to approve the agenda as amended. Seconded by CommissionerKloncz.Ayes –All The motion passed. 4.APPROVAL OF MINUTES Chairperson Ulrich said the minutes state Chairperson Ulrich adjourned the meeting but was absent so that should be correctlyreflected. CommissionerTkachuckmoved to approve theHEDC minutesforJune 12,2013, as amended. Seconded by CommissionerWessel.Ayes –Commissioner’s Kloncz, Jenkins, Tkachuck & Wessel Abstentions –Chairperson Ulrich, Commissioner’s Lewis, & Unger The motion passed. September 11, 2013 1 Housing and Economic Development CommissionMeetingMinutes 5.NEW BUSINESS a.Approval of Loan Program Application, Larkin Dance Studio i.Planner, Mike Martin gave the presentation and answered questions of the commission. ii.Assistant City Manager, Community Development Director, Melinda Coleman addressed and answered questions of the commission. iii.Dean A. Trongard, representing Larkin Dance Studio, addressed and answered questions of the commission. iv.Michelle Larkin Wagner, Co-Owner of Larkin Dance Studio, addressed the commission and gave the history of Larkin Dance in Maplewood. Commissioner Jenkins moved to approve a standard low-interest loan between the Economic Development Authority (EDA)andthe Larkin Dance Studio with terms stating a portion of or all of the loan could be forgiven if certain employment standards are met, i.e. number of created full- time equivalent positions. Any employment standards for a forgivable loan should have a sustained timeframe of at least two years. If the applicant meets a portion of the employment requirements, but not all, the terms of a forgivable loan should be applied on a pro-rated scale. Seconded by Commissioner Tkachuck.Ayes –All The motion passed. This item will be heard by the City Council and the Economic Development Authority (EDA) on September 23, 2013.Commissioner Jenkins will represent the HEDC at the City Council and EDA meeting. b.Approval of Selling Excess City-Owned Real PropertyPolicy i.Planner, Mike Martin gave the reportand answered questions of the commission. ii.Assistant City Manager, Community Development Director, Melinda Coleman addressed and answered questions of the commission. Commissioner Wessel moved to approvethe selling of excess city-owned real property policy in the staff report. This policy has Maplewood’s criteria and project review policies, procedures and criteria for any city-owned real property that would be sold in the city of Maplewood. Seconded by Commissioner Unger.Ayes –All The motion passed. c.Approval of Sale of City-Owned Real Property, Castle Avenue and Van Dyke Street i.Planner, Mike Martin gave the presentation and answered questions of the commission. Commissioner Kloncz moved to approvethe recommendation to the city council in determining the property the city ownson the southeast corner of Castle Avenue and Van Dyke Street is in excess and not needed for any public use and should be marketed for sale. Seconded by Commissioner Wessel.Ayes –All The motion passed. September 11, 2013 2 Housing and Economic Development CommissionMeetingMinutes Commissioner Wesselmoved to recommend to the city council authority from the city’s housing and economic development commission to move forward with a purchase agreement to sell the property located on the southeast corner of Castle Avenue and Van Dyke Street. Seconded by Commissioner Lewis.Ayes –All The motion passed. 6.UNFINISHED BUSINESS None. 7.VISITOR PRESENTATIONS None. 8.COMMISSIONPRESENTATIONS None. 9.STAFF PRESENTATIONS a.Introduction of Melinda Coleman, Assistant City Manager and Community Development Director. i.Melinda Coleman introduced herself and shared her employment background with the commission.The commission members welcomed Ms. Coleman back to the City of Maplewood. b.Commissioner Appreciation Event September 26, 2013 i.Planner Martin stated that all board and commission members should have received an invitation to attend the gathering at the Maplewood Community Center on September 26, 2013, at 6:30 p.m. please R.S.V.P. to Sarah Burlingame or staff regarding your attendance. c.Development Summary i.Planner Martin gave anupdate on the latest developmentsand approvals for projects in the city of Maplewood. 10.ADJOURNMENT Chairperson Ulrichadjourned the meeting at9:00p.m. September 11, 2013 3 Housing and Economic Development CommissionMeetingMinutes MEMORANDUM TO: Charles Ahl, City Manager FROM: Michael Martin, AICP, Planner Melinda Coleman, Assistant City Manager DATE: October 3, 2013 SUBJECT:Review and Updateof Commercial Reinvestment Loan, Larkin Dance Studio, 1400 East Highway 36 Introduction On September 23, 2013, the city council considered Molly Larkin Symanietz’s, of Larkin Dance Studio,request for the city to consider acommercial reinvestment loan. This loan would assist Larkin Dance Studio in moving to the vacant building and site at 1400 East Highway 36. The city’s economic development authority approved the loan with the specific terms coming back for its approval on October 14, 2013. Staff wants to use the housing and economic commission’s (HEDC) meeting on October 9, 2013 as an opportunity to update the commission on the specific terms that will be included in the loan. The city attorney is still working on the draft loan agreement which will be presented at the HEDC meeting. Discussion As a reminder, Ms. Larkin Symanietz’s application originally requested aloan from the city for $100,000. The city loan would go toward exterior upgrades for the 1400 East Highway 36 site. Improvements would include a new parking lot, site drainageupgrades, a possible raingarden, new landscaping, new lighting and screening for the east side of the property. This site has been vacant for severalyears and has not been well maintained. The city’s economic development authority approved a loan of up to $70,000 with a portion being forgiven ifcertain employment goals are met. The specifics of the loan will be discussed at the HEDC’s next meeting. Property Taxes During the September HEDC meeting, there were a couple of questions regarding property taxes. Staff has provided the following information in response. This property is comprised of two legal parcels. In 2013, Ramsey County valued the two parcels at $918,400. The total amount of property tax due in 2013 for these parcels is $36,488.23. There is also a special assessment for this property for $2,201.77. The current owners of the property are current with  their taxes. Development of a Commercial Loan Policy City staff would like to beginthe discussion of developing a policy for city staff, commissions andthe economic development authority to use while evaluating future applications for commercial loans. The HEDC work plan outlined general locations within the city to target reinvestment dollars but city staff feels that a specific policy would better help guide the review and evaluation of any potential future requests. Recommendation No action required. Attachments 1.LocationMap 2.Aerial Site Map 3.HEDC Work Plan Attachment 1 1400 East Highway 36 Chad Bergo 1400 East Highway 36 - Larkin Dance Studio Location Map Attachment 2 1400 East Highway 36 Chad Bergo 1400 East Highway 36 - Larkin Dance Studio Aerial Site Map Maplewood Economic Development Commission Economic Development Priorities, Implementation Activities and Timeline Economic Development Priorities Redevelopment The Maplewood Business and Economic Development Commission recommends actively exploring opportunities for redevelopment in three potential areas in 2013. Redevelopment is a multi-year process; the BEDC would lay the foundation by exploring market opportunities, building familiarity with business and property owners in the target areas, and determining the level of city support needed to stimulate new investment. St. John’s Hospital Area: Growth is anticipated in the health care sector. The reuse of Gander Mountain by HealthEast reflects market interest in a location close to St. John’s. Ancillary medical office buildings have the potential to generate significant property tax revenue as well as quality employment opportunities. The long term plans of St. John’s and market potential for additional health care related development/businesses should be explored. Gladstone (Frost Avenue and English Street): Historically, this area of the community served as a key commercial node in the community and is considered the original settlement site of Maplewood. However shopping, traffic patterns, retail formats and typical retail parcel sizes have changed, and market forces alone may not be sufficient to stimulate reinvestment. Highway 36 and English Street: Change is underway in this area with the major reconstruction of Highways 36 and 61 in 2013. This can serve as a stimulus for redevelopment within these key transportation corridors. Underutilized buildings, vacant parcels and redevelopment opportunities exist within this area. Business Retention The BEDC recommends that it undertake a business retention effort, with an emphasis on relationship building. Starting in 2013, the focus of retention efforts will be primarily on businesses in potential redevelopment areas. There are approximately 1,000 businesses in the three potential redevelopment areas, distributed as follows. St. John’s Hospital Area Gladstone Highway 36 and English Street Corridor Ideally, visits to redevelopment area businesses will involve one staff member and one volunteer. City staff would be responsible for scheduling and maintaining pertinent information; volunteers can bring a business perspective to the visit and send a strong message that the city cares. A simple interview guide should be developed to make sure that key information is gathered while creating an opportunity to listen to the business and build a relationship. It is estimated that staff capacity allows for approximately 3 visits each month. In addition, the BEDC recommends that the Mayor or City Manager notify GREATER MSP and Ramsey County that the city would like to be informed of visits in the community, so that it might send a representative of the city as part of delegation on visits to major employers. Implementation Activities and Timeline The following implementation strategies and timeline are suggested. Third Quarter 2012 a. Redevelopment areas broadly defined and agreed to by BEDC and EDA. b. Funds budgeted for market analysis in early 2013 c. Business lists developed for redevelopment areas; interview guides developed Fourth Quarter 2012 d. Develop and issue RFQ or RFP for market analysis for the three key market areas with preliminary redevelopment feasibility analysis to help determine the level of city support that may be needed to stimulate investment. e. Complete 3 business retention visits; review & refine the process f. Send letter to GREATER MSP and Ramsey County requesting that the city be invited to participate in business retention visits to major employers in the community First Quarter 2013 g. Retain consultant and begin market analysis & preliminary feasibility to determine level of city support needed to stimulate investment h. Conduct 9 business retention visits to businesses in the potential redevelopment areas Second Quarter i. Consultant completes market analysis and preliminary feasibility; shares results 2013with EDC j. Conduct 9 business retention visits to businesses in the potential redevelopment areas Third Quarter 2013 k. Consider market analysis and preliminary feasibility. Develop a strategyfor the potential redevelopment areas. Set priorities and determine the level of city engagement that may be needed to stimulate private investment in revitalization of these areas including the following: Do nothing • ID area only & indicate city is receptive to redevelopment of the area • Create vision or physical concept plan • Conduct environmental review • Purchase property, assemble sites, clean-up sites, provide incentives for • redevelopment Align comp plan, transportation, zoning, design standards, development • review process Create implementation strategy based on market opportunities, catalyst • sites, financing tools and funding opportunities Share with neighbors & partners – e.g. area residents, business owners, • Met Council, MnDOT, county, watershed district, others Market to developers • l. Review business retention process. Is it meaningful? Does the number of visits per month work well for staff & volunteers? How might it be improved or adjusted? Continue conducting visits based on insights gained from the review process. Possible Future Activities The BEDC also considered strengthening electronic communication with businesses. Because the city has a business base of more than 1,000 businesses, personalized outreach to all businesses would require a substantial commitment of resources. Electronic communications would allow the city to reach a broader base of businesses and a visitation approach. One option is to work with the city communications department to build a database over time of e-mail addresses for businesses and develop a newsletter targeted specifically to businesses. As taxpayers, businesses have different concerns and service needs than residents. It could include positive messages about growing businesses in Maplewood and identify specific ways that businesses might access a variety of city services (e.g. expansion assistance, fire safety, employee participation in park and recreation opportunities, etc.). A business oriented newsletter would ideally be distributed 2-4 times per year. Another option is to conduct annual or semi-annual business events, sponsored by the city, to which businesses are invited. Approaches such as a Mayor’s Breakfast, luncheon speakers or events that feature city facilities such as parks or the community center provide an opportunity for relationship building with businesses.