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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.