HomeMy WebLinkAbout2017-04-20 HEDC Packet
AGENDA
CITY OF MAPLEWOOD
HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
Thursday,April 20, 2017
6:00 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.January 19, 2017
5. New Business:
a.Update on Agreement between Maplewood Area EDA and Larkin Dance Studio
b.CityAcquisitions of1160 Frost Avenueand 1375 Frost Avenue
c.2040 Comprehensive Plan Steering Committee
d.Progress Report on Business Engagement Program(No Report)
e.Maplewood Business Council(No Report)
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
THURSDAY,JANUARY 19, 2017
6:00 P.M.
1.CALL TO ORDER
A meeting of the Commissionwas held in the City Hall Council Chambers and was called to order
at 6:01p.m.byChairperson Jenkins.
2.ROLL CALL
Commissioners
Brian Finley, CommissionerPresent
Mark Jenkins, ChairpersonPresent
Jennifer Lewis, CommissionerPresent
Benosi Maduka, CommissionerPresent
Joy Tkachuck, Vice ChairPresent
Dennis Unger, CommissionerPresent
Warren Wessel, CommissionerAbsent
Staff
Michael Martin, Planner, Economic Development Coordinator
Chris Swanson, Economic and City Code Specialist
3.APPROVAL OF AGENDA
Chairperson Jenkins asked staff for an update on the Maplewood Area EDA. Staff said that could
be discussed under 5. b. under new business.
Chairperson Jenkins moved to approve the agenda as amended with the addition of anupdate of
the Maplewood Area EDAto be discussed under new business 5.b.
Seconded by CommissionerFinley.Ayes –All
The motion passed.
4.APPROVAL OF MINUTES
CommissionerFinleymoved to approve the minutesfor July 13, 2016as submitted.
Seconded by CommissionerTkachuck.Ayes –Chairperson Jenkins,
Commissioner’s Finley, Lewis,
& Tkachuck
Abstentions –Commissioner Maduka,
& Commissioner Unger
The motion passed.
January 19, 2017
1
Housingand Economic Development CommissionMeetingMinutes
5.NEW BUSINESS
a.2016 Code Enforcement Year-End Report
i.Environmental and City Code Specialist, Chris Swanson gave the 2016 Code
Enforcement Year-End Report and answered questions of the commission.
b.EEDD Update on Gladstone Neighborhood
i.Economic Development Coordinator, Michael Martin gave the EEDD Update on the
Gladstone Neighborhood and answered questions ofthe commission.
No action was required.
Maplewood Area EDAupdate–Staff gave a brief update on what has been discussed at
past EDA meetings.
c.2016 HEDC Annual Report
i.Economic Development Coordinator, Michael Martin gave the report on the 2016 HEDC
Annual Report.
The commission discussed theitems under HEDC reviews as a group.
Commission member Finley moved to approve the 2016 HEDC Annual Reportas presented.
Seconded by Commission member Tkachuck.Ayes –All
The motion passed.
Chairperson Jenkins volunteered to represent the HEDC at thecity council meetingin February.
d.Election of Officers (No Report)
The commission decided to retain the same Chair and Vice Chair for 2017.
Commissioner Tkachuck moved to nominate Mark Jenkins as the Chairperson.
Seconded by Commissioner Finley.
Commissioner Finley moved to nominate Joy Tkachuck to remain as the Vice Chairperson.
Seconded by Chairperson Jenkins.Ayes –All
The motion passed.
e.Recap of Recent Business Engagement Outreach Events (No Report)
i.Economic Development Coordinator, Michael Martin gave a recap of the Business
Engagement Outreach Events.
6.UNFINISHED BUSINESS
None.
January 19, 2017
2
Housingand Economic Development CommissionMeetingMinutes
7.VISITOR PRESENTATIONS
a.Maplewood resident,Kevin Berglundaddressed the commissionregarding the state of the
city and economic development in Maplewood.
8.COMMISSIONPRESENTATIONS
a.New Member Introduction(No Report)
i.Economic Development Coordinator, Michael Martin introduced the newest HEDC
commission member Benosi Maduka.
ii.Commissioner Benosi Maduka introduced himself and shared why he decided he wanted
to serve on the HEDC Commission.
9.STAFF PRESENTATIONS
a.Development Summary(No Report)
i.Economic Development Coordinator, Michael Martin gave a development update on
projects in the city.
Hill Murray, 2625 Larpenteur Avenue, for a new athletic field & restroom addition.
Aldigrocery store, at Plaza 3000,3000 White Bear Avenue is under construction.
Beyond Storage, 1515 Cope Avenue, an indoor storage facility at English & Hwy 36,
construction is expected to begin sometime this spring.
Maplewood Marine, at 1136 & 1146 Frost Avenue,CUPfor that building.
Metro Heating & Cooling expansion, 2303 Atlantic Street North, (at the former Handy
Hitch building)
Alzheimer’sClinic, 1700 Beam Avenue, new building to be built.
Health Partners is proposing a short term mental health rehabilitation clinic, 2715 Upper
Afton Road, theproject so that Health Partners can meet with the neighborhood and the
school regarding concerns about the project in a residential area.
Hazelwood Medical building, Phase 2, 2945 Hazelwood.
McDonald’s, 1797 Cope Avenue, istearing down the current building which has been
there since 1972 and building a new building.
Mapleridge Shopping Center, 2515 White BearAvenue, there is a proposal for 2 new
buildings to be built in the parking lot of that shopping centerthat still needs to be heard
by the city council.
10.ADJOURNMENT
Chairperson Jenkinsadjourned the meeting at 8:07p.m.
January 19, 2017
3
Housingand Economic Development CommissionMeetingMinutes
MEMORANDUM
TO:Melinda Coleman, City Manager
FROM:Michael Martin, AICP, Economic Development Coordinator
DATE:April 12, 2017
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 loantoMolly 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 improvementswereapproved and verified by the city’sBuilding 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 LarkinDance’s to addthe
equivalent of at least 4 new 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 3.5new FTE jobs.Staff is
recommending Larkin be given until the end of 2017 to create the remaining 0.5 FTEjobs
needed to satisfy the requirements of the agreement. This will need to be reflected in Larkin’s
2017 report. Failure to do so, could result in the city requiring a portion of the loan be paid back.
Larkin’s 2016business subsidy report is attached to this report and the 2017report will be due
to the city by March 1, 2018. 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 not allow the city to require the sign be updated.
Recommendation
No action required.
Attachment
1.Business Subsidy Agreement, December 9, 2013
2.Larkin 2016Annual Report
Attachment 1
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,
1830 County Road B East, Minnesota 55109(“EDA”) and Larkin Dance Studio, LLC, a
Minnesota limited liability company,1400 Highway 36 East, Maplewood, MN 55109,
hereinafter referred to as “LarkinDance” and 1400 Highway 36, LLC, 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
Attachment 1
WH
EREAS, 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;
Attachment 1
d.Rem
ove, 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
Attachment 1
for
given 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.
Attachment 2
Attachment 2
Attachment 2
Attachment 2
MEMORANDUM
TO:Melinda Coleman, City Manager
FROM:Michael Martin, Economic Development Coordinator
DuWayne Konewko, Environmental & Economic Development
Department Director
DATE:April 12, 2017
SUBJECT:City Acquisitions of 1160 Frost Avenue and 1375 Frost Avenue
Introduction
At the January 19, 2017housing and economic development commission meeting, staff
provided the commission an update on several projects and initiatives the department is
workingonfor2017and beyond.One of those projects included the continued
redevelopment of the Gladstone Neighborhood.
Discussion
Gladstone Neighborhood Redevelopment
As the redevelopment of the former Maplewood Bowl site continues, staff is looking for
ways to continue this effort in other areas of the neighborhood. One of the repeated
themes staff has heard from developers isthe site prep costs in this neighborhood are
prohibitive and create difficulties in continuing the revitalization of this important
neighborhood.
As a response to this barrier, in the existing capital improvement plan (CIP) the city
council tagged $4.75 million to be used for the acquisition of property for redevelopment.
Specific properties will be identified and the City may act as developer or in agreement
with a private developer to acquire and demolish existing buildings and property for
development in accordance with the approved Gladstone Master Plan and the City's
Comprehensive Plan.
The CIP has thiswork slated to start in 2018. That is when the funding would be
available, staff has already begun the process of analyzingproperties and contacting
property owners to gauge interest. In the interim, two properties have become available
and it is staff’s recommendationthe city acquire these properties in 2017 usingexisting
funds within the city’s EDA and redevelopment budgets.
1375 Frost Avenue –Gladstone House
For much of the past year, staff has been in negotiation with Dr. Elmer Salovich over the
purchase of 1375 Frost Avenue –the former “Gladstone House.” This structure has
been home to several uses –bakery, church, furniture store, etc. –but has beenvacant
for more than 10 years and is in very poor condition. The intention is to demolish the
structure and ready the property for new development. The city also owns a vacant
parking lot across the street, adjacent to the Philippine Center of Minnesota. The
Philippine Center of Minnesotain turn owns a vacant parking lot next to the Gladstone
House building. City staff will explore options with the Philippine Center of Minnesotafor
transferring ownership of the two lots.
1160 Frost Avenue East
Staff has come to an initial agreement with the property owner of 1160 Frost Avenue.
The current owner purchased this property tax forfeit directly from RamseyCounty. The
owner then used the property as storage for junk vehicles which the zoning code does
not allow. The property owner was responsive to the city’s orders to comply with the
zoning code and cleaned up the property. As the existing owner does not have a use for
the property now the city engaged on a potential purchase. The site is guided and zoned
for medium density residential housing. The intent would be for the city to hold this land
and to work with a developer on potential acquisition of vacant land surrounding this
parcel for a housing development.
Budget Impact
Monies to acquire the properties will be utilized from the city’s EDA and redevelopment
funds. All purchase agreements and allotments on funds will have to be approved by
the city council.
Recommendation
Provide feedback and provide a recommendation to staff and the city council regarding
the purchase of the two properties.
Attachment
1.Location map –1375 Frost Avenue East
2.Location map –1160 Frost Avenue East
Attachment 1
1375 Frost Avenue East
April 13, 2017
City of Maplewood
Legend
!
I
0240
Feet
Source: City of Maplewood, Ramsey County
Attachment 2
April 13, 2017
City of Maplewood
Legend
!
I
0240
Feet
Source: City of Maplewood, Ramsey County
MEMORANDUM
TO:Housing and Economic DevelopmentCommission
FROM:Michael Martin, Economic Development Coordinator
DATE:April 12, 2017
SUBJECT:Appointment Commission Member to 2040 Comprehensive Plan
Steering Committee
Introduction
Every 10 years, all Twin Cities metro cities and countiesare required to update its
comprehensive plan to ensure compatibility with the plans adopted by the Metropolitan
Council. Chapters and areas of focus include land use, housing, sustainability, parks,
natural resources, transportation, historical resources, surface water and sanitary sewer.
Involvement from staff, appointed officials, and elected officials is imperative to a successful
comprehensive planning process. City staff and the city’s comprehensive planning consultant
–HKGi –will be regularly meeting with a 2040Comprehensive Plan Steering Committee
who will oversee the planning process. The steering committee will be comprised of one
member from each of the city’s appointed citizen board and commissions. This committee
will meet approximately every other month over the next year. Meeting times will be
established once members have been identified.
As a point of information, city staff will provide updatesand presentations tothe board and
commissions to keep them apprised of the comprehensive planning process and from time to
time, to seek feedback and direction on various ideas and initiatives.
Discussion
Overview
The city’s existing 2030 Comprehensive Plan was adopted on January 25, 2010. As
required by state law, Maplewood must update its comprehensive plan to meet policies
established by the Metropolitan Council’s Thrive MSP 2040 policy plans. The city
actually began this process when it adopted the Maplewood Parks System Plan in
January of 2015. This parks plan replaced the chapter adopted with the comprehensive
plan in 2010 and will be incorporated in the updated 2040 Comprehensive Plan.
Work Plan
Maplewood is required to submit its updated comprehensive plan to the Metropolitan
Council for review by the endof 2018. HKGi–the city’s planning consultant –has
proposeda work plan that will last through the midway point of 2018. This work plan is
divided into eight tasks.
Task1-Organize the effort
Task2-Understand the context
Task3-Engagement Phase 1-understand what is desired
Task4-Explore the possibilities
Task5-Update the plan elements
Task6-Engagement Phase 2 -consult and collaborate
Task7-Assemble the final plan and seek approvals (Engagement Phase 3)
Task8-Prepare plan for distribution and agency approvals
2040 Comprehensive Plan Steering Committee
The 2040 Comprehensive Plan Steering Committeewill be engaged at every step of the
previously detailed work plan. The first meeting for the 2040 Comprehensive Plan
Steering Committee will be held on May 22, 2017 at 5 p.m. This will be a joint meeting
conducted with the city council and the planning commission and will serve as a
“Maplewood Comprehensive Planning101”. This meeting will be designed to provide an
orientation to comprehensiveplanning in general and willalso include a review of the
current plan, requiredcomprehensive plan contents, the Metropolitan Council’sThrive
2040 initiative, Maplewood’s SystemStatement, the schedule for the update process
and other pertinent information.
Recommendation
Please select onemembersfrom your commissionto serve on the 2040 Comprehensive
Plan Steering Committee.
Attachments
None