HomeMy WebLinkAbout2016-02-10 HEDC Packet
AGENDA
CITY OF MAPLEWOOD
HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
Wednesday, February 10, 2016
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. December 9, 2015
5. New Business:
a. 2015 Code Enforcement Year-End Report
b. Update on Agreement between Maplewood Area EDA and Larkin Dance Studio
c. Consider Selection of a Business Retention Program
d. 2015 HEDC Annual Report
e. Election of Officers (No Report)
f. Recap of Recent Business Engagement Outreach Events (No Report)
6. Unfinished Business:
7. Visitor Presentations:
8. Commission Presentations:
a. New Member Introduction (No Report)
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
WEDNESDAY, DECEMBER 9, 2015
7:00 P.M.
1. CALL TO ORDER
A meeting of the Commission was held in the City Hall Council Chambers and was called to order
at 7:01 p.m. by Chairperson Gansluckner.
2. ROLL CALL
Commissioners
Spencer Gansluckner, Chairperson Present
Mark Jenkins, Commissioner Present
Jennifer Lewis , Commissioner Present
Joy Tkachuck, Vice Chair Present
Dennis Unger, Commissioner Present
Absent
Warren Wessel, Commissioner
Staff
Michael Martin, Planner, Economic Development Coordinator
3. APPROVAL OF AGENDA
Commissioner Tkachuck moved to approve the agenda as submitted.
Seconded by Commissioner Unger. Ayes – All
The motion passed.
4. APPROVAL OF MINUTES
Commissioner Unger moved to approve the minutes for August 12, 2015 as submitted .
Seconded by Commissioner Jenkins. Ayes – Chairperson Gansluckner,
Commissioner’s Jenkins
& Unger
Abstention – Commissioner Tkachuck
& Commissioner Lewis
The motion passed.
5. NEW BUSINESS
a. Consider Approval of Nominees for Maplewood Awards
i. Economic Development Coordinator, Mike Martin gave the report on the Nominees for
Maplewood Awards.
ii. Chairperson Gansluckner and Commissioner Tkachuck spoke on behalf of the
subcommittee regarding the nominees for the Maplewood Awards.
December 9, 2015 1
Housing and Economic Development Commission Meeting Minutes
Commissioner Jenkins moved to recommend Linn Companies for the
Entrepreneurship/Innovative/Growth Award.
Seconded by Commissioner Lewis. Ayes – All
The motion passed.
Commissioner Jenkins moved to recommend Garden Fresh Farms for the Environmental
Sustainability Award.
Seconded by Commissioner Unger. Ayes – All
The motion passed.
Commissioner Jenkins moved to recommend the Tubman Center East for the Community
Contribution and the rest for Second Harvest.
Seconded by Commissioner Unger. Ayes – Commissioner Jenkins, Unger
After discussion amongst the commission it was decided to take a vote.
Commissioner Jenkins moved to take a tally of which commission members preferred Tubman
Center East and which preferred Second Harvest Heartland.
Seconded by Commissioner Tkachuck.
Chairperson Gansluckner, Commissioner’s Lewis & Tkachuck voted for Second Harvest
Heartland.
Commissioner’s Jenkins and Unger preferred Tubman Center East.
The motion passed to award the Community Contribution Award to Second Harvest Heartland.
The award winners will be recognized after the Mayor’s address at the State of Maplewood
Luncheon on January 14, 2016 at the Maplewood Community Center.
b. Promoting Civility in Public Meetings and Parliamentary Procedures
i. Economic Development Coordinator, Mike Martin gave the report.
No action was required.
c. Update on HEDC Business Engagement Outreach Events (No Report)
i. Economic Development Coordinator, Mike Martin gave the update.
Commissioner’s Gansluckner and Jenkins spoke about the business engagement outreach
event.
6. UNFINISHED BUSINESS
None.
December 9, 2015 2
Housing and Economic Development Commission Meeting Minutes
7. VISITOR PRESENTATIONS
None.
8. COMMISSION PRESENTATIONS
None.
9. STAFF PRESENTATIONS
Economic Development Planner, Martin spoke about projects that were approved since the last
HEDC meeting in August as well as upcoming projects in 2016 to the City of Maplewood.
10. ADJOURNMENT
Chairperson Gansluckner adjourned the meeting at 8:15 p.m.
December 9, 2015 3
Housing and Economic Development Commission Meeting Minutes
MEMORANDUM
TO:
Melinda Coleman, City Manager
FROM:
Chris Swanson,Environmental and City Code Specialist
DATE:
January 28, 2016
SUBJECT:
Presentation of 2015 Code Enforcement Report
Introduction
Property maintenance codes exist to prevent blight, maintain a residential atmosphere, and
promote safe and healthful neighborhoods. Code enforcement responds to a number of issues
relating to vehicles, long grass/weeds, junk and debris, exterior storage, exterior property
maintenance, home occupations, lighting, signs and other code related issues.
Discussion
In 2015, the City introduced a new webpage format. This was a good opportunity to change the
existing handouts and forms on the code site in order to construct a more user-friendly
experience for the residents. Thewebsite upgrades includes a “Report an Issue” button onthe
front page. When a complaint is filled out by a resident an email is sent directly to the code
enforcement team with the time, location, issue, and contact information of the complaint
making it easier for residents to report issues in their neighborhood.Additionally, residentscan
now include a picture with the code complaint.
Code enforcement complaints and abatements have continued to decline over the past few
years as the number of foreclosures properties has decreased. Additionally,because of
proactive code enforcement by staff,there has been an increase in the number of Noticeof
Code Violationstagsissuedto residents.
Over the past year, the Code Enforcement Department has been working closely with the
Maplewood Police Department to foster a more united response to community issues. In April
of 2015, the code team provided in-service training to the Maplewood police officers. The
training spotlightedthe most common code issues and how the policeshould respond if they
encounter the violation. This has helped by providing around the clock code enforcement and
provided an outline for when officers should contact code staff toaddress issues at a property.
Enforcement Matters Resolved
Number of Complaints Resolved 324
Enforcement Action in Progress 7 (4 with compliance dates in 2016)
Total Number of Code Violations Received 470
Correction letters/Citations/Abatements
Number of Correction Letters mailed 274 (up 40%from 2014)
Number of Citations Issued 7
Abatement Fee Charged $7046.84
Re-inspection Fees Charged $468.75
Type of ComplaintNumber of Complaints Received Pending
Exterior Storage 98 4
Unapproved Parking 62 0
Lawn Maintenance 43 0
House / Property Maintenance 19 1
Junk Vehicles 37 1
Trash / Garbage 18 0
Trash Container Storage 23 0
Commercial Vehicle / Equipment 4 1
Home Occupation 1 0
Miscellaneous Concerns 22 0
Total Number of Violations 331 7
*Animal complaints fall under “Miscellaneous Concerns”.
Code Enforcement by Violation
2
Code Enforcement Count by Year
Issue 20102011 2012 2013 2014 2015 Total
Commercial vehicle / 1518 14 1 3 4 55
equipment
Exterior Storage102103 97 95 86 98 581
Home Occupation 1523 17 10 10 1 76
House / Property 5438 55 39 37 19 242
Maintenance
Junk Vehicle 11180 67 35 37 51 381
Lawn Maintenance235196 134 128 41 43 777
Trash /Garbage35503527188173
Trash Container Storage 1523 21 16 10 23 108
Unapproved Parking 124123 123 60 50 62 542
Misc. Complaints 8282 82 91 40 22 399
Total 788736 645 502 332 331 3334
Summary
The number of foreclosed and abandoned properties in Maplewood has substantially decreased
over the past few years. That has caused a significant drop in the number of code violations
and abatements. Because of more proactive enforcement by code staff there has been an
increase in the number of Notice of Code Violations tags issued to residents.
Code enforcement continues to work through a community outreach model with a focuson
educating violators and including stakeholders like landlords, residents, renters, and commercial
property owners. This approach helps the community understand what is expected for property
upkeep. Code enforcement will continue to work to keepsMaplewood clean, safe, and
attractivefor the residents in the community.
Budget Impact
Code Enforcement is planned and budgeted through the General Fund.
Recommendation
Review the information provided in the report.
Attachments
1.2015 Code Violation Map
3
Code Enforcement
Map for 2015
by property
\
Code Enforcement
Count by Census Block
Legend
Code Violations by Type
!Í
Animal (10)
Commercial vehicle / equipment (4)
Exterior Storage (98)
!%
Home Occupation (1)
×
House / Property Maintenance (20)
_
c
Junk Vehicle (51)
'
!
Lawn Maintenance (43)
!(
Trash / Garbage (8)
!
Trash Container Storage (23)
bfdc
p
Unapproved Parking (63)
www.MaplewoodMN.gov/gisPrepared: Jan 27, 2016
MEMORANDUM
TO:
Melinda Coleman, City Manager
FROM:
Michael Martin, AICP, Economic Development Coordinator
DATE:
February 3, 2016
SUBJECT:
Update on Agreement between Maplewood Area EDA and Larkin Dance
Studio
Introduction
On the December 9, 2013 the Maplewood Area Economic Development Authority approved a
$70,000 forgivable commercial reinvestment loanto Molly Larkin Symanietz, of Larkin Dance
Studio.This loan assistedLarkin Dance Studio in moving to the site at 1400 East Highway 36
and occupying a previously vacant building.
Discussion
Theterms of the loan required that $20,000 be paid back to the city via fees and permit costs
during the construction process for the site and this requirement was satisfied in 2014. The
remainingterms of the loan call for $50,000 of the$70,000 to be forgiven five years after date of
final payment. If Larkin does not comply with theterms and conditions of the agreement, Larkin
will be required topay back a portion of the loan on a proratedbasis.
Larkin’s initial improvements to the site were required to exceed $500,000 in order for 50
percentof the $50,000 (or $25,000) ofthe loanto be forgiven.Improvements to the building
have includednew HVAC systems, a new roof on the out building, the exterior of the building
being painted with landscaping installed, the parking lot being resurfaced and its drainage
issues addressed and a solid cedar fence built along the east property line to provide screening
to the neighbors. These improvementshave been approved and verified by the City Building
Official with costs of more than $500,000 meaning $25,000 of the loan has been forgiven.
The remaining $25,000 of the forgivable portion of the loanrequires Larkin’s to addthe
equivalent of at least 4new FTE jobs in thecommercial building by December 2016and
maintaining at least 10 FTE jobs in thecommercial building until December 2018, at wages of at
least $12.25 per hour. If thosegoals are both met over the course of that five year period, the
remaining $25,000.00 shall beforgiven.Thus far, Larkin has created two new FTE jobs and has
communicated they intend to meet the 4 FTE requirement by August of this year.
Larkin’s 2015 business subsidy report is attached to this report and the 2016 report will be due
to the city by March 1, 2017. During a site inspection of the site prior to this report it was found
the freestanding sign on the site still is displaying the business name of the previous occupant.
The business subsidy agreement does notallow the city to require the sign be updated.
Recommendation
No action required.
Attachment
1.Business Subsidy Agreement, December 9, 2013
2.Larkin 2015 Annual Report
BUSINESS SUBSIDY AGREEMENT
THIS AGREEMENT
made this day of December, 2013, by and between the
Maplewood Economic Development Authority
, a Minnesota public body corporate and politic,
Larkin Dance Studio, LLC
1830 County Road B East, Minnesota 55109(“EDA”) and , a
Minnesota limited liability company,1400 Highway 36 East, Maplewood, MN 55109,
1400 Highway 36, LLC
hereinafter referred to as “LarkinDance” and , a Minnesota limited
liability company, 1689 Oakdale Avenue, Suite 102, West St. Paul MN 55118, hereinafter
referred to as “Larkin Building Owner” and together Larkin Dance and Larkin Building Owner
shall hereinafter collectively be referred to as “Larkin.”
RECITALS
WHEREAS
,the Cityof Maplewood(“City”)has long-desired to improve the function
and appearance of its communitythrough economic development, and has invested substantial
resources toward that goal; and
WHEREAS
, the Maplewood City Council establishedthe EDA in July 2011in order to
advance these objectives; and
WHEREAS
, the EDA adopted criteria for awarding business subsidies, pursuant to the
Business Subsidies Act, Minn. Stat., Sections 116J.993 to 116J.995,(“Business Subsidy Act”);
and
WHEREAS
,Larkinhas operated its business in Maplewood since 1946; and
WHEREAS
,Larkinhas indicated it has outgrown its current location but would like to
remain in Maplewoodandhas identified 1400 East Highway 36, the Minnesota Granite Building
(Granite Building)for potential relocationand expansion;and
WHEREAS
,to facilitate the expansion, Larkin has proposed rehabilitation of the Granite
Building, an outdated vacant commercial buildingthat has sat vacant forseveralyears, at atotal
estimated cost for the building purchase and renovation cost of approximately $1.6 million
dollars and is seeking a business subsidy (“Business Subsidy”) from EDA in the amount of
$70,000to aid in the cost of rehabilitation and redevelopmentof the Granite Building and site;
and
WHEREAS,
Larkinis proposing to purchase the Granite Building, upgrade the HVAC
system and mechanicals,repair the parking lot, upgrade the electrical systems, repair and replace
roofing, conduct environmental remediation, and remedy additional building issues
(“Improvements”) to retrofitand rehabilitatethe existing building for Larkin’s proposed use; and
WHE
REAS,
it is anticipated that the use in the new commercial building will prevent
the loss of at least 6FTEjobs through the business potentially relocating out of the City of
Maplewood; create at least 4FTE new jobswithin threeyears at wages of at least $12.25per
hour; maintain those 10 FTE jobs in the Cityfor at least two years beyond that;promote private
investment in a blightedor economically depressed area;enhance economic development, and
potentially increase the property tax base; and
WHEREAS,
the EDA believes the proposed redevelopment of the Granite Building
would be desirable for the City; and
WHEREAS,
the proposed redevelopment meets all criteria for awarding a Business
Subsidy established by the EDA Policy on Business Subsidies anddue to the estimated cost of
the proposed redevelopment, the Improvements are financially infeasible without public
assistance.
NOW THEREFORE,
for good and valuable consideration, the receipt of which is
acknowledged, and in consideration of the covenants and agreements made herein, Larkinand
the EDA hereby agree as follows:
AGREEMENT
1.
The Business Subsidy is comprised of a partially-forgivable loan in an amount not to
exceedseventythousand dollars ($70,000). The partially-forgivable loan shall be due and
payable to Larkinin increments or in a lump sum upon receipt by the EDA of invoices
for work performed. A note and mortgage will be taken out on the property as security
for the payable portion of the Business Subsidy, too wit: fifty thousand dollars
($50,000.00).It is recognized by the parties that twenty thousand ($20,000.00) of the
Business Subsidy will be almost immediately paid back to the City as and for public
works fees and permits and is thus not necessary to secure,long term.Satisfaction of
some or the entiresecuredamount will be determined as performance metrics are realized
or default occurs.
2.
The public purposes of the Business Subsidy are as follows:
a. Promote the economic and commercial redevelopment of the City;
b.Preserve the local tax base and improve the general economy and vitality of the
City;
c. Promote the health, safety and welfare of the residents of the City;
d.Remo
ve, prevent or reduce blight, blighting factors or the cause of blight inthe
City;
e.Attract, retain, rehabilitate and preserve commercial facilities;
f.Eliminate or improve structurally substandard buildings;
g.Create new jobs in the commercial and retail sector;
h.Remove obsolete site layout and design;
i.Afford maximum opportunities, consistent with the needs of the City as a whole,
for the redevelopment of the area by private enterprise.
3.
Within the next year, Larkin will be making improvements to the Granite Building and
site in excess of Five Hundred Thousand Dollars ($500,000).
4.
The goals for the Business Subsidy are to secure timely development and maintain the
Improvements as a commercial building for at least five (5)years.
4.
Job and wage goals of the Business Subsidy are to create at least the equivalent of 4new
FTE jobs inthe commercial building within the nextthree (3) years, at wages of at least
$12.25per hourand maintain at least 10 totalFTE jobs in the commercial building over
the following two (2) years, at wages of at least $12.25 per hour.
5.
Larkinwill construct the Improvements pursuant to a Site Plan,which will require
approval by the Maplewood Building Department and Permittingand InspectionProcess.
6.
Larkin, its permitted successors or assigns will continuously operate the newcommercial
building for at least five (5)years, except in the event of unforeseeable casualty, in which
event, Larkinshall rebuild and reopen as soon as commercially reasonable. For the
purpose of this section,“continuously operate,” means that space is leased or available
for lease to any person or entity for use in its private trade or business, or occupied by
Larkin for use in its trade or business.
7.
Larkinshall provide a list of all grantors who provided financial assistance for the project
(i.e. Department of Employment and Economic Development, Xcel Energy, etc.).
8.
If Larkincomplies with the terms and conditions of this Agreement, fifty thousand
($50,000.00) of the seventy thousand ($70,000.00) of theBusiness Subsidy will be
forg
iven five (5) years after date of final payment for the Business Subsidy. If Larkin
does not comply with the terms and conditions of this Agreement, Larkinshall pay back a
portion of the Business Subsidy on a prorated basis, based on the portion of the operation
period elapsed as of the date of default.Larkin’s initial improvements to the site (that
must exceed $500,000and once completed and approved by the City Building Official)
shall constitute 50% of the $50,000 (or $25,000) of the forgivable portion of the loan.
The remaining $25,000of the forgivable portion of theloan shall be based on Larkin’s
addition of the equivalent of at least 4new FTE jobs in the commercial building within
the next three (3) years and maintaining at least 10FTE jobs in the commercial building
over the following two (2) years, at wages of at least $12.25 per hour.If those goals are
both met over the course of that (5) year period, the remaining $25,000.00 shall be
forgiven as well.
10.The Parties acknowledge that Larkin shall execute a Note and Mortgage in favor of the
City of Maplewood EDA for the forgivable portion of the loan, to wit: $50,000.00, which
shall be recorded in at least second-lien position against the property. The parties agree
that Larkin shall be entitled toa partial satisfaction of the Note and Mortgage once the
first $25,000.00 becomes or is forgiven and or full satisfaction upon the conclusion of the
successful completion of the requirements called forth in Paragraph 8regarding loan
metrics.
9.
Larkinmust submit to the EDA a written report regarding Business Subsidy goals and
st
results by no later than March 1of each year, commencing March 1, 2014and
continuing until the later of the date that the goals are met; or thirty (30) days after
expiration of the five-year period; or if the goals are not met, then the date the Business
Subsidy is repaid. The report must comply with Section 116J.994 subd. 7 of the Business
Subsidy Act, the requirement of which are attached at Exhibit B hereto. The EDA will
provide information to Larkinregarding the required forms. If Larkinfails to timely file
any report required under this section, the EDA will mail Larkina notice of non-
compliancewithin one week after the required filing date. If, after 14 days of the
postmarked date of the notice,Larkinfails to provide the required report, Larkinmust
pay the EDA a penalty of $100 for each subsequent day until the report is filed. The
maximum aggregate penalty payable under this section is $1,000.00.
10.
Larkinmust comply with City Code Section ___regarding the payment of prevailing
wages for/during construction of the improvements to the Granite Building structure.
11.
The parties agree that this Agreement shall be construed pursuant to Minnesota law and
any disputes shall be venued in RamseyCounty, Minnesota.
12.
No
tices to the parties shall be sent as follows:
If to EDA:Maplewood EDA
Attn: Executive Director
1830 Co. Road B East.
Maplewood, MN 55109
If to Larkin: Larkin Dance Studio
Attn: Ms. Molly Symanietz
President of Larkin Dance Studio
1400 Highway 36 East
Maplewood, MN 55118
12.
This Agreement shall not be assigned without the prior written consent of the other party,
which shall not be unreasonably withheld.
13.
This Agreement shall only be amended by written agreement approved by both parties.
IN WITNESS WHEREOF,
the parties have caused this Agreement to be duly executed
by their authorized representatives as of the date first written above.
[THE REMAINDER OF THIS PAGEINTENTIALLY BLANK]
MAPLEWOODECONOMIC DEVELOPMENT AUTHORITY
Marv Koppen
Its: President
R. Charles Ahl
Its: Executive Director
STATE OF MINNESOTA )
)ss
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this ________ day of
_______________________, 2013, by Marv Koppen and R. Charles Ahl, the President and
Executive Director, respectively, of the City of MaplewoodEconomic Development Authority, a
Minnesota public body corporate and politic existing under the Constitution andlaws of
Minnesota, on behalf of the EDA.
Notary Public
LARKIN DANCE STUDIO, INC.
Its:President
Name:
Its:
STATE OF )
)ss
COUNTY OF )
The foregoing instrument was acknowledged before me this ________ day of
_________________________, 2013, by _________________________, the Presidentof Larkin
Dance Studio.
Notary Public
EXHIBIT A
This exhibit has no content at the moment
EXHIBIT B
Business Subsidy reporting requirements
(a) A business subsidy grantor must monitor the progress by the recipient in achieving agreement
goals.
(b) A recipient must provide information regarding goals and results for two years after the
benefit date or until the goals are met, whichever is later. If the goals are not met, the recipient
must continue to provide information on the subsidy until the subsidy is repaid. The information
must be filed on forms developed by the commissioner in cooperation with representatives of
local government. Copies of the completed forms must be sent to the local government agency
that provided the subsidy or to the commissioner if the grantor is a state agency. If the Iron
Range Resources and Rehabilitation Board is the grantor, the copies must be sent to the board.
The report must include:
(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy is tax
increment financing;
(2) the hourly wage of each job created with separate bands of wages;
(3) the sum of the hourly wages and cost of health insurance provided by the employer with
separate bands of wages;
(4) the date the job and wage goals will be reached;
(5) a statement of goals identified in the subsidy agreement and an update on achievement of
those goals;
(6) the location of the recipient prior to receiving the business subsidy;
(7) the number of employees who ceased to be employed by the recipient when the recipient
relocated to become eligible for the business subsidy;
(8) why the recipient did not complete the project outlined in the subsidy agreement at their
previous location, if the recipient was previously located at another site in Minnesota;
(9) the name and address of the parent corporation of the recipient, if any;
(10) a list of all financial assistance by all grantors for the project; and
(11) other information the commissioner may request.
A report must be filed no later than March 1 of each year for the previous year. The local agency
and the Iron Range Resources and Rehabilitation Board must forward copies of the reports
received by recipients to the commissioner by April 1.
(c) Financial assistance that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
requirements of this subdivision, except that the report of the recipient must include instead:
(1) the type, public purpose, and amount of the financial assistance, and type of district if
the assistance is tax increment financing;
(2) progress towards meeting goals stated in the assistance agreement and the public
purpose of the assistance;
(3) if the agreement includes job creation, the hourly wage of each job created with
separate bands of wages;
(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;
(5) the location of the recipient prior to receiving the assistance; and
(6) other information the grantor requests.
(d) If the recipient does not submit its report, the local government agency must mail the
recipient a warning within one week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a report, the recipient must pay to
the grantor a penalty of $100 for each subsequent day until the report is filed. The maximum
penalty shall not exceed $1,000.
Attachment 2
2015 Report for subsidy agreement Between The Maplewood Economic
Development Authority and Larkin Dance Studio
In 2012, The Owners of 3000 White Bear Avenue, The Mall where Larkin rented
space to operate their business, were notified of a planned remodel. Estimates for our cost
of this remodel were over $200,000. The need for additional space for dance classes
along with the cost of the remodel and increase in sqaure footage to be rented would put
Larkin in financial hardship. The owners of Larkin began the search for a building to
purchase in hopes of freezing their operating costs in the future.
1400 Highway 36 east proved to be a feasible site for relocation.
the type, public purpose, and amount of subsidies and type of district, if the subsidy is
tax increment financing;
To facilitate the expansion, Larkin Dance proposed rehabilitation of the Granite
Building, an outdated vacant commercial building that sat vacant for several years, at a
total estimated cost for the building purchase and renovation cost of approximately $1.6
million dollars and Larkin Dance was seeking a business subsidy (“Business Subsidy”)
from EDA in the amount of $70,000 to aid in the cost of rehabilitation and
redevelopment of the Granite Building and site.
The Business Subsidy is comprised of a partially-forgivable loan in an amount not
to exceed Seventy Thousand Dollars ($70,000).
The public purposes of the Business Subsidy are as follows:
a.Promote the economic and commercial redevelopment of the City;
b.Preserve the local tax base and improve the general economy and vitality
of the City;
c.Promote the health, safety and welfare of the residents of the City;
d.Remove, prevent or reduce blight, blighting factors or the cause of blight
in the City;
e.Attract, retain, rehabilitate and preserve commercial facilities;
f.Eliminate or improve structurally substandard buildings;
g.Create new jobs in the commercial and retail sector;
1
Attachment 2
h.Remove obsolete site layout and design;
Afford maximum opportunities, consistent with the needs of the City as a
whole, for the redevelopment of the area by private enterprise.
the hourly wage of each job created with separate bands of wages;
To Date, 2 new jobs have been created at $13 per hour.
the sum of the hourly wages and cost of health insurance provided by the employer
with separate bands of wages;
In 2015 we paid a total of $320,286 in wages. There was no health insurance
provided.
The 2014 Fiscal year in our new location, ( Sept 2014 through August 2015 ) The first
complete year at `1400 Highway 36 East. Larkin paid a total of 13,518 hours :
6,731 hours @ $25 per hour or more
2,436 hours @ $15 - $24.99 per hour
4,311 hours @ $12-$14.99 per hour
The 2012 Fiscal year ( Sept, 2012 through August 2013 ) The last complete year at 3000
White Bear Avenue. Larkin Paid a total of 10,277 hours
6,917 hours @ $25 per hour or more
2,294 hours @ $15 - $24.99 per hour
1,066 hours @ $12-$14.99 per hour
the date the job and wage goals will be reached;
Goal:
Job and wage goals of the Business Subsidy are to create at least the
equivalent of 4 new FTE jobs in the commercial building within the next three (3)
years, at wages of at least $12.25 per hour and maintain at least 10 total FTE jobs
in the commercial building over the following two (2) years, at wages of at least
$12.25 per hour.
The wage goals will be reached by August 31, 2016 and the jobs created will
2
Attachment 2
be maintained through August 31, 2018
a statement of goals identified in the subsidy agreement and an update on achievement
of those goals;
a.Promote the economic and commercial redevelopment of the City;
b.Preserve the local tax base and improve the general economy and vitality
of the City;
c.Promote the health, safety and welfare of the residents of the City;
d.Remove, prevent or reduce blight, blighting factors or the cause of blight
in the City;
e.Attract, retain, rehabilitate and preserve commercial facilities;
f.Eliminate or improve structurally substandard buildings;
h.Remove obsolete site layout and design;
Afford maximum opportunities, consistent with the needs of the City as a
whole, for the redevelopment of the area by private enterprise.
All of the goals (a,b,c,d,e,f, h, i) have been satisfied by the renovation
of the existing building at 1400 Highway 36 east. New HVAC systems
were all installed, Roof was replaced on the out building, The exterior
was repainted and landscaping performed. The parking lot was
resurfaced and drainage issues addressed. A 100% opaque barrier
was installed on the east property line in the form of a cedar privacy
fence 6' to 8' tall. All at the cost of over $700,000.
3
Attachment 2
g.Create new jobs in the commercial and retail sector;
2 FTE jobs have already been created. (Paragraphs (2) and (4) above)
COMPARISON 3000 WHITE BEAR AVE TO 1400 HIGHWAY 36 EAST:
3000 WHITE BEAR AVE
In the 2012 Fiscal Year we had equivalent of 5 FTE employees At @ $25 per
hour or more
(Teachers working over 25 hours per week, are considered Full time)
In the 2012 Fiscal Year we had equivalent of 1,5 FTE employees @ $15 - $24.99
per hour
(Office Staff working over 32 hours per week are considered Full time)
In the 2012 Fiscal Year we had equivalent of ,5 FTE employees @ $12-14.99 per
hour
(Office Staff working over 32 hours per week are considered Full time)
At the 3000 White bear location Larkin employed the equivalent of 7 Full Time
Employees
4
Attachment 2
1400 HIGHWAY 36 EAST
In the 2014 Fiscal Year we had equivalent of 5 FTE employees At @ $25 per
hour or more
(Teachers working over 25 hours per week, are considered Full time)
In the 2014 Fiscal Year we had equivalent of 1,5 FTE employees @ $15 - $24.99
per hour
(Office Staff working over 32 hours per week are considered Full time)
In the 2014 Fiscal Year we had equivalent of 2.5 FTE employees @ $12-14.99
per hour
(Office Staff working over 32 hours per week are considered Full time)
At the 3000 White Bear location Larkin employed the equivalent of 9 Full
Time Employees
To date we have added the equivalent of 2 full time employees.
the location of the recipient prior to receiving the business subsidy;
3000 White Bear Avenue, Maplewood, MN 55109
the number of employees who ceased to be employed by the recipient when the
recipient relocated to become eligible for the business subsidy;
No Employees lost employment due to the relocation.
why the recipient did not complete the project outlined in the subsidy agreement at their
previous location, if the recipient was previously located at another site in Minnesota;
As our business needed more space to add additional classes for our students, we
needed to find a new location. The mall we were renting from was planning a
complete remodel which would have put a financial strain on the business. Our
overhead would have increased without having the extra space we needed.
the name and address of the parent corporation of the recipient, if any;
Larkin Dance Studio Inc. 1400 Highway 36 east, Maplewood, MN 55109
5
Attachment 2
a list of all financial assistance by all grantors for the project; and
No other financial assistance was received.
6
MEMORANDUM
TO:
Melinda Coleman, City Manager
FROM:
Michael Martin, AICP,Economic Development Coordinator
DATE:
February 3, 2016
SUBJECT:
Consider Selection of a Business Retention Program
Introduction
At the February 10, 2016 housing and economic development commission (HEDC) meetingcity
staff will provide an overview of various options and programs available regarding developing a
business retention programin Maplewood. City staff will be looking for direction from the
commissionon where to direct and focus its efforts indeveloping a program.
Discussion
In 2011 and 2012 city staff and members of the then-business and economic development
commission made several business retention visits with Maplewood businesses to have a
general discussion and find out about potential issues. The city is looking to restart this effort in
2016 but with the need to acknowledge that since the 2011 and 2012 visitsmultiple staff
positions in the environmental and economic development department have been eliminated
meaning staff time is at a premium and that the use ofoutside resources will be required. City
staff would also like to utilize this effort to provide educational opportunities to any staff
members, appointed officials, elected officials and other volunteers who would be conducting
these visits to ensure similar methodologiesand a shared understanding for the purpose of the
retention meetings.
At the February 10 meeting, staff will present options from programs offered by the University of
Minnesota Extension, Saint Paul Area Chamber of Commerce and the White Bear Lake Area
Chamber of Commerce.
Recommendation
Staff will be requesting feedback and direction from the HEDC regarding business retention
visits.
MEMORANDUM
TO:
Spencer Gansluckner,Housingand Economic Development Commission
FROM:
Michael Martin, AICP,Economic Development Coordinator
DATE:
February 3, 2016
SUBJECT:
2015 Annual Report
Introduction
Attached to this memo is thedraft of the housingand economic development’s (HEDC)2015
Annual Report. This report isproduced every year and then forwardedon to the city council for
its review of the HEDC’swork throughout the previous year.
Discussion
The format of the 2015 Annual Report is similar to last year’sreport and what other city
commissionssubmit to the city council.
Recommendation
Recommend approval of the HEDC’s 2015 Annual Report.
Attachments
1.2015 HEDCAnnual Report
MEMORANDUM
TO:
Melinda ColemanCity Manager
FROM:
Spencer Gansluckner,Housingand Economic Development Commission
DATE:
February 10, 2016
SUBJECT:
Approvalof 2015 Housing Economic Development Commission Annual
Report
Introduction
Annually, the housingand economic development commission (HEDC) is required toreport the
HEDC’sactions and activities for the city councilfor the previous year. In 2015, the HEDC
reviewed the following 15items during its meetings:
Type of Proposal #
Reviewed
Development Related Reviews1
1.Approval of RedevelopmentTax Increment Financing District, Villages at Frost-English
(May 13, 2015)
HEDCReviews6
1.Business Engagement Plan – Susan Fronk (May 13, 2015)
2.Update on Council Goals – Economic Development (July 8, 2015)
3.Development Summaries (every meeting)
4.HEDC Business Engagement Outreach Events (August 12, 2015)
5.Consider Approval of Nominees for Maplewood Awards (December 9, 2015)
6.Update on HEDC Business Engagement Outreach Events (December 9, 2015)
Miscellaneous Reviews and Actions 8
1.2014 Code Enforcement Year-End Report (May 13, 2015)
2.2014HEDC Annual Report (May 13, 2015)
3.Election of Officers (May 13, 2015and July 8, 2015)
4.Partners in Energy –Review of Maplewood’s Energy Action Plan (July 8, 2015)
5.Maplewood Parks System Plan (July 8, 2015)
6.Approval of the 2016 – 2020 Capital Improvement Plan (July 8, 2015)
7.2015 Code Enforcement Mid-Year Report (August 12, 2015)
8.Promoting Civility in Public Meetings and Parliamentary Procedures (December 9, 2015)
Total15
Comparative Information
Year Number of Items Reviewed
201017
201115
2012 14
201321
201418
201515
Membership
The HEDC consists of sevenmembers appointed by the city council. Membershipterms are for
threeyears, with extensions for additional terms approved by the city council. During 2015
Commissioner Unger was appointed to another three year term. In 2016, commissioners
Tkachuck, Jenkins and Lewis will be up for reappointment. The membership as of the date of
this report:
Board MemberMembership BeganTerm Expires
Joy Tkachuck09/25/069/30/16
Mark Jenkins01/25/109/30/16
Jennifer Lewis04/25/119/30/16
Warren Wessel12/13/109/30/17
Spencer Gansluckner09/22/149/30/17
Brian Finley01/25/169/30/17
Dennis Unger07/25/119/30/18
Discussion
2015 Actions/Activities
In 2015, the HEDC continued its commitment to development and redevelopment in the city of
Maplewood by working on several projects. The HEDC spent a good portion of its year giving
direction and guidance to the creation of the city’s first efforts of hosting business engagement
events and the Maplewood Awards program. Throughout 2015 the city hosted several events
where area businesses where invited to the Maplewood Community Center which gave the city
an opportunity to communicate directly with this community. Most notably were the Maplewood
Community Engagement Breakfast and the State of Maplewood events. While the State of the
Maplewood event washeld in mid-January of this year the majority of planning and prep work
occurred in 2015 and the HEDC chairperson, Spencer Ganslucknerrepresented and spoke on
behalf of the HEDC at both events.
The HEDC led the creation of the Maplewood Awards program, which works to inspire,
recognize and reward business achievements in terms of growth, environmental awareness and
contributions to the community.The HEDC reviewed nominations and selected the following
winners for the three categories:
Linn Companies–
Entrepreneurship/Innovation/Growth Award
Garden Fresh Farms –
Environmental Sustainability Award
Second Harvest Heartland –
Community Contribution Award
The HEDC’s work planidentifies the Gladstone neighborhood as an area the city and the HEDC
would focus itsefforts on. The HEDC reviewed and recommend approval of the tax increment
financing request by Sherman Associates for the Villages at Frost-English project. This request
was a continuation of support since the Metropolitan Council awarded $1.9 million grant in 2013
for this project and the adjacent public improvements along Frost Avenue and English Street.
The HEDC and staff worked on business outreach through environmental and energy efficiency
programs. These programs provide a link between the city and the business community while
supporting two of the city’s key goals – economic development and sustainability.
2016 Activities
In 2016, the HEDC will continue to implement its work plan and concentrate on key
redevelopment areas within the city. In addition, the HEDC will be guiding the city in its effort in
restarting business retention visits. The business retention program will work to leverage the
efforts of city staff, commission volunteers and elected official which utilizing the tools offered by
outside organization to ensure meaningful and useful visits for both the city and the businesses.
The HEDC will continue its efforts todevelop a program and guidelines for its revolving loan fund
program – building on what it learned from the first application. The HEDC is a key resource as
the city looks to continue and expand its economic development efforts. In 2016, the HEDC will
be committedto the development and enhancement of the city of Maplewood.
Recommendation
Approve theHEDC’s2015 annual report.