HomeMy WebLinkAbout2019-04-18 HEDC Packet AGENDA
CITY OF MAPLEWOOD
HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
Thursday, April 18, 2019
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 17, 2019
5. New Business:
a. Conducting City Business and Public Meetings Presentation
b. Update on Agreement between Maplewood Area EDA and Larkin Dance Studio
c. Resolution of Appreciation for Benosi Maduka
d. New Member Orientation
6. Unfinished Business:
a. Rental Housing Licensing Program
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
JANUARY 17, 2019
6:00 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 6:00 p.m. by Chairperson Jenkins.
2. ROLL CALL
Commissioners
Denis Dupee, Commissioner Present
Brian Finley, Commissioner Present until *7:40 p.m.
Mark Jenkins, Chairperson Present
Jennifer Sauer, Commissioner Absent
Joy Tkachuck, Vice Chair Present
Dennis Unger, Commissioner Absent
Staff
Michael Martin, Planner, Economic Development Coordinator
Steve Lukin, Maplewood Fire Chief
Jason Brash, Building Official
3. APPROVAL OF AGENDA
Commissioner Tkachuck moved to approve the agenda as submitted.
Seconded by Commissioner Finley. Ayes —All
The motion passed. •
4. APPROVAL OF MINUTES
Commissioner Dupee moved to approve the HEDC minutes for September 20, 2018 as
submitted.
Seconded by Commissioner Tkachuck. Ayes —All
The motion passed.
5. NEW BUSINESS
a. 2018 Business Engagement Program Report
i. Economic Development Coordinator, Michael Martin gave the 2018 Business
Engagement Program Report and a video was shown about the business retention and
expansion program and various businesses in Maplewood.
The commission would like to continue the business engagement program. With the help of the
SPACC the commission felt they were receiving better data. The feedback received has been
positive. The commission asked what the cost to the city was to be involved with the SPACC.
The Business Council would like there to be an increase in the number of meetings.
January 17, 2019 1
Housing and Economic Development Commission Meeting Minutes
The commission felt business networking is valuable and meeting every other month plus maybe
2 other networking events would be valuable. The commission wondered if there could be a link
on the HEDC page on the city website for contacts.
No action was required.
b. Housing and Economic Development Commission Rules of Procedure —Annual
Review
i. Economic Development Coordinator, Michael Martin gave the report on the Housing and
Economic Commission Rules of Procedure—Annual Review.
After a lengthy discussion the commission requested Amendments to B2 and D2 in the Rules of
Procedure.
Commissioner Dupee moved to recommend the revisions to the HEDC Rules of Procedure with
the amendment to restore Visitor Presentations with a 3 minute time limit and to move it to the
end of the agenda.
Seconded by Commissioner Tkachuck. Ayes —All
The motion passed.
c. 2018 Housing and Economic Development Commission Annual Report
i. Economic Development Coordinator, Michael Martin gave the 2018 Housing and
Economic Development Commission Annual Report.
Commissioner Finley moved to approve the 2018 Housing and Economic Development
Commission Annual Report.
Seconded by Commissioner Tkachuck. Ayes —All
The motion passed.
Chairperson Jenkins will be the HEDC representative at the February 25, 2019, city council
meeting with Commissioner Tkachuck as the alternate if he cannot attend.
d. Election of Officers — No Report
Commissioner Tkachuck moved to recommend Mark Jenkins to continue in the role as the
Chairperson of the HEDC.
No second to the motion was needed. Ayes — Commissioner's Dupee,
Finley & Tkachuck
Abstention — Chairperson Jenkins
Commissioner Dupee moved to recommend Commissioner Tkachuck to continue in the role as
the Vice Chairperson of the HEDC.
No second to the motion was needed. Ayes —All
The motion passed.
January 17, 2019 2
Housing and Economic Development Commission Meeting Minutes
e. Recent Business Outreach Events — (No Report)
i. Economic Development Coordinator, Michael Martin stated because one of the
commissioners has to leave the meeting a little early he wanted to move ahead to the
Rental Housing Licensing discussion and this item was briefly touched on during the
Business Engagement discussion.
6. UNFINISHED BUSINESS
a. Rental Housing Licensing Discussion
i. Economic Development Coordinator, Michael Martin gave the report on the Rental
Housing Licensing Discussion and answered questions of the commission.
ii. Maplewood Fire Chief, Steve Lukin addressed and answered questions of the commission
about fire and safety inspections.
Commissioner Finley was concerned about the burden of the fee for the rental program for single
family homes and in the draft ordinance under 12-613 (1) letter (m) regarding the excessive calls
to the police and fire and (n) pursue of eviction of tenants. He also asked about Air B & B not
being in the ordinance. *Commissioner Finley had to leave the meeting during this discussion
item at 7:40 p.m.
Commissioner Dupee was mostly in support of the rental housing licensing idea.
Chairperson Jenkins believed the intent is to have a safe environment for renters and for the
property owners. He asked Fire Chief Lukin to address the rental screening process. To him the
license types and inspection schedules are a concern to him. If you have a rental property on a 3
year licensing and inspection process or a yearly rental license and inspection process the level
of income to the city changes. If there is a rental property that has no problems and is very well
behaved there would be one type of license and a property that has been a repeat offender could
be another type of license.
Do we license out of a behavioral scenario or out of a fiscal scenario where we need to maintain
a certain level of licensing in order to keep the program fiscally neutral. He said he understood
the sliding scale but he would like to see if everyone is a type A license the program is still
sustainable. One scenario would be what if you have a property owner with multiple rental
properties and one property is a type A and one property is a type B and another is a type C
property etc. how does the property owner remember to pay the fee once a month, once every 6
months or once a year. Ideally the city would love to have all rental properties a consistent type
A. An annual license would be easier to enforce and inform regardless of the level of compliance
and then adjust the fees according to the good or bad behavior of the property owner. If
everyone is on a 3 year program the income is a lot less to the city compared to an annual
license. Chairperson Jenkins wants to make sure the rental program is fiscally sustainable.
Commissioner Tkachuck enjoyed the discussion on the rental licensing and asked how hotels,
senior housing, and nursing homes were handled and inspected which Fire Chief Lukin
discussed.
No action was required and this item will come back to the HEDC in the spring.
7. VISITOR PRESENTATIONS
None.
January 17, 2019 3
Housing and Economic Development Commission Meeting Minutes
8. COMMISSION PRESENTATIONS
Chairperson Jenkins said if you would like to serve on the Maplewood city council you can apply
to serve as a city council person and for more information go to the City of Maplewood website
www.maplewoodmn.gov for further details and the application process.
9. STAFF PRESENTATIONS
a. Development Summary—(No Report)
i. Economic Development Coordinator, Michael Martin gave a summary of development
projects in the city.
a. A CUP for 1690 McKnight Road for G7 Laundry.
b. A CUP for 1800 White Bear Avenue for the former Junior Achievement building for a
multi-use building for a banquet center, fitness center, etc,
c. A CUP for 1955 County Road D, the old Ziebart business for a used Auto Sales
building.
10. ADJOURNMENT
Chairperson Jenkins adjourned the meeting at 8:08 p.m.
r
January 17, 2019 4
Housing and Economic Development Commission Meeting Minutes
HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT
Meeting Date April 18, 2019
REPORT TO: Housing and Economic Development Commission
REPORT FROM: Melinda Coleman, City Manager
PRESENTER: Mike Funk, Assistant City Manager
AGENDA ITEM: Conducting City Business & Public Meetings Presentation
Action Requested: ❑ Motion ✓ Discussion ❑ Public Hearing
Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
Minnesota Statute lays out rules regarding the conduct of public officials, both elected and appointed. The
information being presented is to ensure that all public officials are aware of the laws that govern your
positions.
Recommended Action:
No action is necessary.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.00
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ❑ Other: n/a
Strategic Plan Relevance:
❑ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment
❑ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt.
NA
Background
Mike Funk, Assistant City Manager, will be present during the April 18, 2019, Housing and Economic
Development Commission meeting to present. Topics to be discussed include:
• Open Meeting Law
• Technology as it Applies to Open Meeting Law
• Conducting Commission Meetings
• Role of Members and Chair at Meetings
Attachments
1. Conducting Open — Public Meetings PowerPoint Presentation
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HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT
Meeting Date April 18, 2019
REPORT TO: Melinda Coleman, City Manager
REPORT FROM: Michael Martin, AICP, Economic Development Coordinator
PRESENTER: Michael Martin, AICP, Economic Development Coordinator
AGENDA ITEM: Update on Agreement between Maplewood Area EDA and Larkin Dance
Studio
Action Requested: ❑ Motion ✓ Discussion ❑ Public Hearing
Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
On the December 9, 2013 the Maplewood Area Economic Development Authority approved a $70,000
forgivable commercial reinvestment loan to Molly Larkin Symanietz, of Larkin Dance Studio. This loan
assisted Larkin Dance Studio in moving to the site at 1400 East Highway 36 and occupying a previously
vacant building. Larkin Dance Studio has been required to submit annual reports detailing it's
compliance with the terms of the agreement. As agreed upon in the original agreement, this will be the
final reporting period.
Recommended Action:
No action is necessary.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.00
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ❑ Other: n/a
Strategic Plan Relevance:
❑ Financial Sustainability ❑ Integrated Communication ✓Targeted Redevelopment
❑ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt.
The City worked with Larkin Dance Studio on relocating to a vacant building. The Maplewood Area
Economic Development Authority approved a $70,000 forgivable commercial reinvestment loan to assist
Larkin Dance Studio with its rehab of the building and property.
Background
The terms 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 remaining terms
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 the terms and conditions of the agreement, Larkin will be required to pay
back a portion of the loan on a prorated basis.
Larkin's initial improvements to the site were required to exceed $500,000 in order for 50 percent of
the $50,000 (or $25,000) of the loan to be forgiven. Improvements to the building included new 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 improvements were
approved and verified by the city's Building Official with costs of more than $500,000 meaning
$20,000 of the loan has been forgiven.
The remaining $50,000 of the forgivable portion of the loan required Larkin Dance to add the
equivalent of at least 4 new FTE jobs in the commercial building by December 2016 and maintain at
least 10 FTE jobs in the commercial building for a period of five years, at wages of at least $12.25
per hour. If those goals are both met over the course of that five year period, the remaining $50,000
shall be forgiven. To date, Larkin has created 4 new FTE jobs and maintained at least 10 FTE jobs in
the commercial building for a period of five years. This satisfies the requirements of the agreement
and Larkin has met all terms of the original agreement.
Larkin's 2018 business subsidy report is attached to this report and no additional reports are required
from this point on. During a site inspection of the site prior to this report it was found the freestanding
sign on the site is now displaying the Larkin logo and name and the overall property was found to be
in very good condition.
Attachments
1. Business Subsidy Agreement, December 9, 2013
2. Larkin 2018 Annual 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 "Larkin Dance" 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 City of Maplewood ("City") has long-desired to improve the function
and appearance of its community through economic development, and has invested substantial
resources toward that goal; and
WHEREAS, the Maplewood City Council established the EDA in July 2011 in 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, Larkin has operated its business in Maplewood since 1946; and
WHEREAS, Larkin has indicated it has outgrown its current location but would like to
remain in Maplewood and has identified 1400 East Highway 36, the Minnesota Granite Building
(Granite Building)for potential relocation and expansion; and
WHEREAS, to facilitate the expansion, Larkin has proposed rehabilitation of the Granite
Building, an outdated vacant commercial building that has sat vacant for several years, at a total
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
$70,000 to aid in the cost of rehabilitation and redevelopment of the Granite Building and site;
and
WHEREAS, Larkin is 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 retrofit and rehabilitate the existing building for Larkin's proposed use; and
Attachment 1
WHEREAS, it is anticipated that the use in the new commercial building will prevent
the loss of at least 6 FTE jobs through the business potentially relocating out of the City of
Maplewood; create at least 4 FTE new jobs within three years at wages of at least $12.25 per
hour; maintain those 10 FTE jobs in the City for at least two years beyond that; promote private
investment in a blighted or 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 and due 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, Larkin and
the EDA hereby agree as follows:
AGREEMENT
1. The Business Subsidy is comprised of a partially-forgivable loan in an amount not to
exceed seventy thousand dollars ($70,000). The partially-forgivable loan shall be due and
payable to Larkin in 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 entire secured amount 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. 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;
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 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.
5. Larkin will construct the Improvements pursuant to a Site Plan, which will require
approval by the Maplewood Building Department and Permitting and Inspection Process.
6. Larkin, its permitted successors or assigns will continuously operate the new commercial
building for at least five (5) years, except in the event of unforeseeable casualty, in which
event, Larkin shall 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. Larkin shall 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 Larkin complies with the terms and conditions of this Agreement, fifty thousand
($50,000.00) of the seventy thousand ($70,000.00) of the Business Subsidy will be
Attachment 1
forgiven 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, Larkin shall 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 $500,000 and 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 $25,000 of the forgivable portion of the loan shall be based on Larkin's
addition of the equivalent of at least 4 new FTE jobs in the commercial building within
the next three (3) years and maintaining at least 10 FTE 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 to a 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 8 regarding loan
metrics.
9. Larkin must submit to the EDA a written report regarding Business Subsidy goals and
results by no later than March 1st of each year, commencing March 1, 2014 and
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 Larkin regarding the required forms. If Larkin fails to timely file
any report required under this section, the EDA will mail Larkin a notice of non-
compliance within one week after the required filing date. If, after 14 days of the
postmarked date of the notice, Larkin fails to provide the required report, Larkin must
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. Larkin must 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 Ramsey County, Minnesota.
Attachment 2
2018 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 square 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.
(1) 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;
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.
Attachment 2
(2) the hourly wage of each job created with separate bands of wages;
To Date, 4 new jobs have been maintained at over$13 per hour.
(3) the sum of the hourly wages and cost of health insurance provided by the employer with
separate bands of wages;
In Fiscal year 2017 we paid a total of$510,826 in wages. There was no health insurance provided
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 2017 Fiscal year in our new location, (Sept 2017 through August 2018)
Larkin paid a total of 18,438 hours:
11,653 hours @ $25 per hour or more
3543 hours @$15 - $24.99 per hour
3,242 hours @$12.25 -$14.99 per hour
(4) 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 were reached by August 31, 2016 and the 4 jobs created have been
maintained through August 31, 2018 (see g. pg. 4)
Attachment 2
(5) 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;
i 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.
We refaced the Pylon on Highway 36 and a sign for the Cope Ave. entrance was
installed the summer of 2017.
Attachment 2
g. Create new jobs in the commercial and retail sector;
4 FTE jobs have been created. (Paragraphs (2) and (4) on pg. 2)
COMPARISON 3000 WHITE BEAR AVE TO 1400 HIGHWAY 36 EAST:
3000 WHITE BEAR AVE
In the 2012 Fiscal Year we paid 10,277 hours (Breakdown above)
1400 HIGHWAY 36 EAST
In the 2017 Fiscal Year we paid 18,438 hours
The additional 8,161 hours paid in 2016 compared to 2012 at over$12.25 per hour completes
the requirement of over 4 FTE jobs created. (IRS.gov states Definition of full-time
employees...an employee employed on average at least 30 hours of service per week, or 130
hours of service per month.)
(6) the location of the recipient prior to receiving the business subsidy;
3000 White Bear Avenue, Maplewood, MN 55109
(7) 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.
(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;
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.
(9) the name and address of the parent corporation of the recipient, if any;
Larkin Dance Studio Inc. 1400 Highway 36 east, Maplewood, MN 55109
(10) a list of all financial assistance by all grantors for the project.
No other financial assistance was received.
HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT
Meeting Date April 18, 2019
REPORT TO: Melinda Coleman, City Manager
REPORT FROM: Michael Martin, Economic Development Coordinator
PRESENTER: Michael Martin, Economic Development Coordinator
AGENDA ITEM: Resolution of Appreciation for Benosi Maduka, Housing and Economic
Development Commission
Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing
Form of Action: ✓ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
When citizen members end their time of service on a commission, the city considers adoption of a
resolution of appreciation recognizing the individual for their time committed to serving Maplewood.
Recommended Action:
Motion to approve a resolution of appreciation for Housing and Economic Development
Commission member Benosi Maduka.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ✓ Other: N/A
Strategic Plan Relevance:
❑ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment
✓ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt.
The City of Maplewood appreciates its citizen volunteers who serve on the city's board and
commissions and works to provide recognition for members upon resignation.
Background
Benosi Maduka recently resigned as a member of the Maplewood Housing and Economic
Development Commission due to his moving out of the state. The city council appointed Mr.
Maduka to the Housing and Economic Development Commission on August 8, 2016 and he served
until September 30, 2018.
Attachments
1. Resolution of Appreciation for Benosi Maduka
RESOLUTION OF APPRECIATION
WHEREAS,Benosi Maduka has been a member of the Maplewood Housing and Economic
Development Commission since August 8, 2016 and has served faithfully in that capacity until
September 30, 2018; and
WHEREAS, the Housing and Economic Development Commission and the City Council has
appreciated Benosi's experience, insights and good judgment; and
WHEREAS,Benosi has freely given of his time and energy, without compensation,for the
betterment of the City of Maplewood;and
WHEREAS,Benosi has shown sincere dedication to his duties and has consistently
contributed his leadership, time and effort for the benefit of the City.
NOW, THEREFORE,IT IS HEREB Y RESOL VED for and on behalf of the City of
Maplewood,Minnesota, and its citizens that Benosi Maduka is hereby extended our gratitude and
appreciation for his dedicated service.
Passed by the Maplewood
City Council on ,2019
Marylee Abrams,Mayor
Passed by the Maplewood
Housing and Economic Development Commission
On April 18, 2019
Mark Jenkins Chairperson
Attest:
Andrea Sindt, City Clerk
HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT
Meeting Date April 18, 2019
REPORT TO: Melinda Coleman, City Manager
REPORT FROM: Michael Martin, Economic Development Coordinator
PRESENTER: Michael Martin, Economic Development Coordinator
AGENDA ITEM: New Member Orientation
Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing
Form of Action: ✓ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
The new member orientation outlines the objectives, review process, responsibilities, and scope of
authority of the Housing and Economic Development Commission for new members.
Recommended Action:
No action required.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ✓ Other: N/A
Strategic Plan Relevance:
❑ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment
✓ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt.
New member orientation ensures that all Housing and Economic Development Commissioners
have a full understanding of their role within the City of Maplewood.
Background
The City Council appointed Darryl Henchen to the Housing and Economic Development (HEDC)
Commission on March 25, 2019, with a term ending September 30, 2021. Commissioner Henchen
will fill the vacancy left by Benosi Maduka after he resigned from the HEDC Commission last year.
Attachments
1. Housing and Economic Development Commission New Member Orientation
2. HEDC Ordinance
3. HEDC Rules of Appreciation
Attachment 1
Housing and Economic Development New Member Orientation
Date Revised: April 11, 2019
INTRODUCTION
This orientation outlines the objectives, review process, responsibilities, and scope of authority
of the housing and economic development (HEDC) commission. It is intended to assist new
commissioners of the HEDC.
ORIENTATION
Origination of the HEDC
On December 10, 2012, the city council adopted an ordinance that established the housing and
economic development commission.
HEDC Purpose/Objective
The HEDC was formed to establish economic development priorities and to advise the
Maplewood Economic Development Authority regarding economic and industrial development
and redevelopment within the city of Maplewood. The HEDC shall confer with other city
departments, the Maplewood Economic Development Authority, the local Chamber of
Commerce, and other public and private groups on matters relating to business and industrial
development and periodically survey the area's industrial and commercial climate.
Agenda Packets
City staff will prepare a HEDC agenda packet the week before the scheduled meeting. The
packets contain an agenda, minutes from previous meetings, and staff reports for each agenda
item. City staff mails or delivers the packets to the HEDC commissioner's homes so they
receive them at least 72 hours before the meeting.
HEDC Commissioner Responsibility
Each commissioner should review the staff reports and visit the properties, if applicable, to form
an opinion of the project and become familiar with the proposal or item before the meeting.
HEDC Staff Liaison
The Community Development Department provides staff liaisons and technical support for four
of the City's citizen advisory boards and commissions including the Housing and Economic
Development Commission. Michael Martin, Economic Development Coordinator, is the staff
liaison to the Commission. Contact information found below.
Contact Information
Following is list of staff contacts that serve as technical support to the Commission:
1
Attachment 1
New Hire, Community Development Director Starting May 6, 2019
Michael Martin, AICP, Econ. Dev. Coordinator (651) 249-2303
michael.martin(a�maplewoodmn.gov
Meetings
Meeting Dates: The third Thursday of each quarter.
Starting Time: 6 p.m.
Meeting Location: City Council chambers at Maplewood City Hall, 1830 E. County Road B
Quorum: A simple majority of the current membership of the commissioners
constitutes a quorum.
Cancellations/ Staff will inform the HEDC of meeting cancellations. Meetings
Rescheduling: are canceled when we cannot get a quorum or if there are no items to
review.
Officers: A chairperson and vice chairperson shall be elected by the Commission at
the HEDC meeting in January of each year, and will serve until their
successors have been elected.
City Council The chair or his/her representative will attend the City Council meetings
Meetings: where HEDC items are on the agenda. The chair or his/her representative
will present the Commission's recommendations and answer questions
from the City Council regarding the decision. If the chair is unavailable to
attend the City Council meeting, the chair will appoint a representative from
the commission.
Commission Handbook
The City Council adopted a Commission Handbook to provide general information, rules,
policies, and state statutes for commission members. The handbook will be distributed to new
members separately from this memorandum.
Rules of Procedure
On January 17, 2019 the HEDC recommended amendments to its Rules of Procedures. The
Rules of Procedures compliment the HEDC Ordinance and guide the Commission in conducting
meetings. The City Council will consider adoption of the HEDC's amended Rules later this year.
2
Attachment 1
HEDC Annual Report
Each year the HEDC submits an annual report to the City Council. The annual report includes
actions and activities for the previous year and goals for the new year. Staff drafts the annual
report for review by the HEDC at the end of the year. The report is then forwarded to the City
Council for final approval.
Cablecast of HEDC Meetings
The City of Maplewood cablecasts HEDC meetings. The meetings are aired live on Maplewood
Television, Channel 16 to Maplewood residents who have Comcast cable. For re-run schedules
visit the City's website at http://www.maplewoodmn.gov/555/Channel-16-Schedule. The
meetings are also streamed live and archived on the City's website at
http://www.maplewoodmn.gov/673/Watch-Meetings-Online.
City Website
The City of Maplewood has a website located at www.maplewoodmn.gov. The website is a
good source of information. In addition to current city news and information, the website
contains the city code of ordinances, information on upcoming HEDC meetings (including
packets), and HEDC meeting minutes.
SUMMARY
The Community Development Department would like to welcome you as a new member of the
HEDC We look forward to working with you on working toward the protection and enhancement
of the city's economy and businesses.
3
Attachment 2
ORDINANCE NO.
DIVISION 9
THE MAPLEWOOD HOUSING AND ECONOMIC
DEVELOPMENT COMMISSION
ORDINANCE
Section 1. DIVISION 9. THE MAPLEWOOD HOUSING AND ECONOMIC
DEVELOPMENT COMMISSION (HEDC)
Sec. 2-335. Definitions.
Common terms: As used in this division, the terms defined have the meanings given
them.
Commission means the Housing and Economic Development Commission or HEDC.
City means the City of Maplewood, Minnesota.
City Council means the duly elected governing body of the City of Maplewood,
Minnesota.
Enabling Resolution means the ordinance from which this division derives.
Small Business means a business whose principal place of operation is in the City of
Maplewood and employs thirty people or less and is not a subsidiary of a larger entity or
a corporate-owned franchise location.
Sec. 2-336. Establishment.
The Commission is established which shall have all of the powers, duties and
responsibilities of a commission pursuant to Minnesota Statues § 13.01, subd. 1(c)(5)
and formed pursuant to Minnesota Statute § 412.21, subd. 1. The Commission shall
also have all of the powers, duties and responsibilities of Minnesota Statutes pursuant to
the function of a housing and redevelopment authority.
Sec. 337. Purpose.
It shall be the role and responsibility of the Commission to discuss and make
recommendations to the Maplewood Economic Development Authority regarding
economic and industrial development and redevelopment within the City of Maplewood
pursuant to Bylaws as may be adopted by the Commission. It shall confer with other
City departments, the Maplewood Economic Development Authority, the local Chamber
of Commerce, the Maplewood Parks Commission, and other public and private groups
on matters relating to business and industrial development and periodically survey the
area's industrial and commercial climate and report regularly to the Maplewood
Economic Development Authority, the Maplewood City Council, or both as directed.
Attachment 2
It shall also be the purpose of the Commission to advise and make recommendations to
the Maplewood City Council on housing matters regarding policy issues, development,
redevelopment and housing maintenance. The Commission's purpose is to also
promote and guide the city council and city staff to develop, improve and retain housing
stock in Maplewood that is safe, healthy, meets the housing needs of the residents and
maintains value of quality housing throughout the city.
Sec. 2-338. Name.
The entity created by the Enabling Resolution shall be known as the Maplewood
Housing and Economic Development Commission or HEDC.
Sec. 2-339. Members.
The Commission shall consist of seven (7) members, three (3) of which shall be
representative of, "small business," if available to serve, in Maplewood. The Members
shall be appointed by the Mayor and City Council, upon approval by majority vote of the
same. Those initially appointed shall be appointed for staggered terms consisting of two
members appointed to one (1) year terms; two members appointed to two (2) year
terms; and three members appointed to three (3) year terms, respectively, with a "small
business" representative appointed in each of the initial term timeframes. Thereafter,
Members are appointed to three (3)-year terms. Members may be reimbursed for
expenses pursuant to City reimbursement policies. The city council shall also appoint
persons to the Commission with backgrounds in housing, with knowledge in securing
and maintaining quality housing stock in the city.
Sec. 2-340. Administration.
Bylaws. The Commission shall adopt bylaws and rules of procedure for administration
of its affairs.
Chair. The Commission shall elect a Chair, and a Vice Chair on an annual basis.
Meetings. The Commission shall meet quarterly and at such other times as necessary.
Rules. The Commission shall adopt such rules and guidelines as they deem appropriate,
but shall operate in accordance with Maplewood's Commission Handbook as adopted
and amended from time to time. No rules shall be adopted by the Commission that are
in conflict with the City's Official Commission Handbook and in the event of any conflict
or question, the Handbook shall prevail.
Sec. 2-341. Modification. All modifications to the Enabling Resolution must be by
Ordinance and must be adopted by the City Council by majority vote.
Sec. 2-342. Report to Council. The Commission shall submit a written report of its
activities and/or recommendations for modification of the Enabling Resolution to the
Council at least annually.
Attachment 2
Sec. 2-343. Director. The City's Manager, or designee, shall attend all meetings of the
commission, shall serve as a consultant and advisor to the commission and shall make
quarterly reports to the council.
Sec. 2-344. Conflicts of Interest. Except as authorized by Minnesota Statute 471.88, a
Member of the Commission may not have a substantial conflict of interest in projects
undertaken by the Commission.
Sec. 2-345 Intent to Comply. Except as otherwise authorized by Minnesota Statute, it
is the intent of the City Council of Maplewood to create the Housing and Economic
Development Commission as a "standing" body of the City that shall be subject to the
rules, regulations, restrictions and requirements as defined in both the Open Meeting
Law, § 13D. 01 et seq. and the Minnesota Government Data Practices Act, § 13, et seq.
Section 2.
This ordinance shall take effect after the approval by the city council and
publishing in the official newspaper.
The Maplewood City Council approved this ordinance revision on December 10, 2012.
Mayor
Attest:
City Clerk
Attachment 3
HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
RULES OF PROCEDURE
Adopted by Housing and Economic Development Commission on February 28, 2013
Amendments Proposed January 17, 2019
We, the members of the Housing and Economic Development Commission of the City of
Maplewood, Minnesota, created pursuant to the Maplewood Code of Ordinances, hereby adopt
the following "Rules of Procedure," subject to the provisions of said Article, which is hereby
made a part of these Rules:
A. APPOINTMENTS
The City Council shall make appointments to the Housing and Economic Development
Commission by following the current city appointment policy.
B. MEETINGS
1. All meetings shall be held in the council chambers in Maplewood City Hall, 1830
County Road B East, unless otherwise directed by the chairperson or staff, in which
case at least 24 hours notice will be given to all commissioners.
2. Regular meetings shall be held at 6 p.m. on the third Thursday of each quarter,
provided that when the meeting falls on a legal holiday, such meeting shall be
rescheduled.
3. Special meetings may be held upon call by the chairperson or in his/her absence, by
the vice chairperson, or by any other commissioner with the concurrence of a majority
of the commissioners with at least 72 hours notice to all commissioners.
C. COMMUNITY DEVELOPMENT DEPARTMENT
In addition to carrying out the duties prescribed in the city ordinance the Community
Development Director or a designated replacement shall:
1. Prepare the agenda for each meeting.
2. Act as technical advisor on any matter which comes before the commission.
3. Make written recommendations to the commission on matters referred to the
commission.
4. Schedule any matter with the city council that has been reviewed by the commission
that requires city council approval.
Attachment 3
D. AGENDA
1. Copies of the agenda, together with pertinent staff reports and copies of the minutes
of the previous meeting shall be made available to each member of the commission
no later than three days prior to the next scheduled meeting.
2. The agenda format shall generally read as follows:
a. Call to Order
b. Roll Call
c. Approval of Agenda
d. Approval of Minutes
e. New Business
f. Unfinished Business
g. Commissioner Presentations
h. Staff Presentations
i. Visitor Presentations (3-minute time limit per speaker)
j. Adjournment
E. QUORUM
1. A simple majority of the current membership of the commissioners shall constitute a
quorum.
2. Any action by the commission shall require a majority vote of the members present.
F. ELECTION OF OFFICERS
A chairperson and vice-chairperson shall be elected at the regular meeting of the
housing and economic development commission in January. New terms begin +4
following the election. Once elected, chairs and vice-chairs shall serve until a
successor is elected.
G. DUTIES OF THE CHAIRPERSON
1. In addition to the duties prescribed in the ordinance, the chair shall represent the
commission at each city council meeting where a commission item is on the agenda,
to present the commission's recommendations and to answer questions from the city
council regarding the decision. If the chair is unavailable to attend the city council
meeting, the chair will appoint a representative from the commission.
H. CHAIRPERSON AND VICE-CHAIRPERSON
1. The chairperson, vice chairperson, and such officers as the commission may decide
shall be elected and assume duties according to the current ordinance.
2. In the absence of the chairperson, the vice chairperson shall perform all duties
required of the chairperson. When both the chairperson and the vice chairperson are
absent, the attending members shall elect a chairperson pro tem.
3. If the chairperson resigns from or is otherwise no longer on the commission, the vice
Attachment 3
chairperson shall become the acting chairperson until the commission can hold an
election for new officers. If the vice chairperson resigns or is otherwise no longer on
the commission, the commission will elect a new vice chairperson at the next possible
commission meeting.
I. TEMPORARY COMMITTEES
1. The commission shall elect by a majority vote such standing committees and
temporary committees as may be required and such committees will be charged with
the duties, examinations, investigations, and inquiries relative to subjects assigned by
the chair.
2. No standing or temporary committee shall have the power to commit the commission
to the endorsement of any plan or program without the express approval of the
commission.
J. VACANCIES
The Housing and Economic Development Commission positions shall be vacated or
recommended to the City Council for vacation according to the current housing and
economic development ordinances.
K. AMENDMENT OR SUSPENSION OF RULES
1. Any of the foregoing rules may be temporarily suspended by a majority vote of the
commissioners present.
2. The "Rules of Procedure" may be amended at any regular meeting by a supermajority
vote.
L. RULES OF ORDER
In all points not covered by these rules, the commission shall be governed in its procedures
by Rosenberg's Rules of Order, Simple Parliamentary Procedures for the 21st Century.
M. ANNUAL REVIEW
These Rules of Procedure shall be reviewed by the Housing and Economic Development
Commission at the first meeting of each year.
HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT
Meeting Date April 18, 2019
REPORT TO: Melinda Coleman, City Manager
REPORT FROM: Michael Martin, Economic Development Coordinator
PRESENTOR: Michael Martin, Economic Development Coordinator
AGENDA ITEM: Rental Housing Licensing Program
Action Requested: ✓ Motion ✓ Discussion ❑ Public Hearing
Form of Action: ❑ Resolution ✓ Ordinance ❑ Contract/Agreement ❑ Proclamation
Policy Issue:
City staff will lead a discussion with the Housing and Economic Development Commission (HEDC)
regarding updates on the process of creating a proposed rental housing licensing program.
Recommended Motion:
Provide a motion with recommendations to staff on the proposed rental housing licensing program.
Fiscal Impact:
Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0.
Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source
❑ Use of Reserves ✓ Other: Implementing a rental housing program
will have implications to the city's budget. However, this item is only for discussion purposes at this
time.
Strategic Plan Relevance:
❑ Financial Sustainability ❑ Integrated Communication ❑ Targeted Redevelopment
✓ Operational Effectiveness ❑ Community Inclusiveness ❑ Infrastructure & Asset Mgmt.
The city's Public Safety and Community Development departments work together regarding safety,
property maintenance and code enforcement issues.
Background
Listening Sessions
The City held two listening sessions in February and March. City staff sent notices to property
owners of all rental buildings in Maplewood. Between the two listening sessions, more than 80
people attended to learn more about the proposed program and to provide feedback. Staff has
attached the comment cards the city received to this report.
The themes that emerged during this engagement process consist of:
• Reward well performing properties with fewer inspections and lower fees
• Focus on safety inspections — keep them reasonable
• Tenant training and compliance
• Support for requiring and/or providing training for landlords
• Support for more public safety interaction with properties
• Concern with burdensome regulations
Staff has worked to incorporate the issues we heard at the listening sessions while balancing the
needs of an effective licensing and inspection program as desired by the City Council. As proposed,
the rental licensing ordinance directs the City Manager to create an inspection policy that requires
an inspection every 1-3 years depending on performance.
Properties that meet all requirements will have fewer inspections and therefore lower fees. There
will still be a nominal annual license and fee but inspection fees will only be collected in years
where inspections are to take place. Please refer to the draft fee schedule attached to this report.
Also attached to this report is a sample of an inspection checklist to give HEDC members an idea of
what types of items will be inspected that will then determine a property's inspection cycle.
In addition to the listening session, the City provided a survey as another outlet for property owners
and tenants to provide feedback to the city. Nearly 40 individuals took this survey and echoed the
same themes identified earlier in this report.
Through the listening sessions and the survey the City primarily heard from property owners and
landlords. Residential tenants did participate in each but not at a level the City had hoped. The City
did also work to promote tenant participation via the Maplewood Living newsletter and posts on
social media. City staff is going to make an additional effort to reach out to tenants of rental housing
in Maplewood.
Staff has sent a letter to a representative sample of rental tenants in the City asking for feedback on
this proposed program and to indicate interest in participating in a focus group with City Staff.
Feedback gathered through this effort will be presented to the City Council prior to any decision-
making. Tenant outreach and the focus group will occur through May.
Draft Ordinance and Key Points
A draft of a rental licensing program ordinance is attached to this report. Key points of this
proposed, draft ordinance include:
• Owners or their property managers are required to attend a Crime-Free Multi-Housing
Phase 1 training or its equivalent.
• Rental properties must pass a rental property inspection conducted by a City Housing
Inspector and must continue to maintain the property in accordance to code
requirements.
• Owners or their property managers are required to screen all potential tenants by using a
written rental application which contains sufficient information to conduct a Criminal
Background check and a Credit History check.
• Owners or their property managers are required to and must use a written lease for all
tenants.
• Leases must require tenants to sign a "Lease Addendum for Crime-Free/Drug-Free
Housing."
• City will conduct a Criminal Background Investigation on the Property Owner(s) (and
representatives).
• Property Owner must provide 24 hour contact information for a person who resides within
the Twin City metropolitan service area who is responsible for code compliance of the rental
property. This person will be either the owner or agent of the property.
• City Manager may deny or not renew a license and the City Council may revoke or suspend
a rental license for failure to address any tenant or property issues.
Inspection Schedule Incentives
As mentioned earlier in this report, the proposed, draft ordinance directs the City Manager
to develop a policy—to be adopted by the City Council —to establish an inspection
schedule that incentivizes rental properties that are well performing.
An inspection schedule will be developed that uses criteria based upon State and City
requirements. Inspection criteria and evaluator guidelines will be provided to owners and
posted on the City's website. The license type —and inspection schedule—will be based
on the average number of code violations per inspected property. It would also be the
City's intent to inspect approximately 25 percent of the units in a rental building.
AN EXAMPLE OF LICENSE TYPES AND INSPECTION SCHEDULES
Property Code Violations Criteria (Property Code Only)
License Category Property Code Violations per Inspected Unit
Type A— 3 Year 0-.50
Type B —2 Year Greater than .50 but not more than 1.0
Type C — 1 Year Greater than 1.0 but not more than 1.5
Type D —6 Months Greater than 1.5
Example
• Based on the table above, an 11-unit property would be required to have 3 units
inspected (25% x 11 = 2.75) To receive a Type A License, the 3 units could have no
more than 2 violations averaged for the units inspected (3 x .50 = 1.5)
• To receive a Type B License, the 3 units could have no more than 3 violations averaged
for the units inspected (3 x 1 = 4)
• To receive a Type C License, the 3 units could have no more than 5 violations averaged
for the units inspected (3 x 1.5 = 4.5)
Meaning a property holding a Type A license would be inspected every three years while a Type C
license would be inspected yearly. Regardless of license type all properties would be required to be
licensed annually—just the inspections are subject to longer periods.
Attachments
1. Proposed, Draft Rental License Ordinance
2. Proposed, Draft Fee Schedule
3. Example of Inspection Checklist
4. Comments Submitted to City
Attachment 1
DRAFT
ORDINANCE NO.
AN ORDINANCE ESTABLISHING RENTAL
LICENSING REQUIREMENT FOR RENTAL DWELLING UNITS
DRAFT
The Maplewood City Council the following ordinance to the Maplewood Code of Ordinances.
ARTICLE XIII - LICENSING OF RENTAL DWELLINGS
12-600 - Purpose.
It is the purpose of this Chapter to protect the public health, safety and welfare of citizens of the City by
adopting a rental dwelling licensing, inspection and maintenance program that corrects substandard
conditions, maintains a standard for existing and newly constructed rental dwellings, and ensures
neighborhood stability in the City. The operation of rental properties is a business enterprise that includes
certain responsibilities. Rental dwelling Owners and Managers are responsible to take such reasonable
steps as are necessary to ensure that the citizens who occupy such rental units, as well as neighboring
properties, may pursue the quiet enjoyment of the normal activities of life in surroundings that are safe,
secure, and sanitary, free from noise, nuisances and annoyances, and free from unreasonable fears
about safety of persons and property.
12-601 - Definitions.
Words used in this Chapter shall have the following meanings unless otherwise defined in this Chapter.
(1) Apartment means a community, complex or building having a common Owner and containing at
least one rental dwelling unit.
(2) City Approved Inspector's Report or Inspection Report means a rental dwelling inspection report
prepared and signed by a City rental housing inspector or inspector contracted by the City to
conduct an inspection and provide a report to the City.
(3) City Manager means the City of Maplewood City Manager or his or her designee.
(4) Dwelling means a building or one or more portions of a building occupied or intended to be
occupied for residential purposes of a continued nature.
(5) Let for Occupancy or to Let or to Rent means to permit possession or occupancy of a dwelling or
rental dwelling unit by a person who is not the legal Owner of record thereof, pursuant to the terms
of a written or unwritten lease.
(6) Occupant means any person occupying, living, or sleeping or having possession of a space within
any dwelling.
(7) Operate means to charge a rental charge, fee or other form of monetary or non-monetary
compensation for the use of a rental dwelling unit.
(8) Manager means any person who has charge, care or control of a dwelling that is required to be
licensed under this Chapter.
Attachment 1
(9) Owner or Licensee means any person having a legal or equitable interest in a dwelling that is
required to be licensed under this Chapter as recorded in the official State, County or City records
as holding title to the property or otherwise having control of the property.
(10) Person may be an individual, corporation, firm, association, company, partnership, organization or
any other group acting as a unit.
(11) Rental Dwelling means any dwelling used for residential occupancy by one or more Persons who
are not the Owner or a member of the Owner's immediate family.
(12) Rental Dwelling Inspection Certificate means a certificate issued by the City Manager after the
rental dwelling or rental dwelling unit has passed a rental dwelling inspection.
(13) Rental Dwelling Unit means any room or rooms, or space, in any rental dwelling designed or used
for residential occupancy by one or more Persons who are not the Owner or the Owner's
qualifying relative. Qualifying relative is defined as: parent, stepparent, child, stepchild,
grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece. This relationship may be
either by blood or by marriage.
(14) Tenant means any person occupying a dwelling unit or having possession of a space within a
dwelling unit who pays, in any manner, for the right to occupy such space or who has a leasehold
right to occupy the dwelling unit.
12-602 - License Required.
(1) General Rule. No Person may operate a rental dwelling or rental dwelling unit in the City without a
license for each building in which a rental dwelling or rental dwelling unit is located.
(2) Exceptions.
(a) These rental licensing requirements do not apply to residential property that is occupied by
the Owner or the Owner's qualifying relative.
(b) These rental licensing requirements do not apply to residential property that is owned by a
person commonly referred to as a "Snowbird" when the property is rented to another
person for a period of less than 120 consecutive days while the Owner is residing out of
the State of Minnesota. The Owner must occupy the property during the remainder of the
year.
(c) These rental licensing requirements do not apply to Minnesota Department of Health—
licensed rest homes, convalescent care facilities, nursing homes, hotels, motels, managed
home-owner associations, or cooperatives.
(3) Application Requirements. An Owner of a rental dwelling or rental dwelling unit must complete an
application on an official application form provided by the City and submit the required application
fee. Renewal applications may be submitted by an Owner or Manager on a simplified renewal
form provided by the City. The City Manager must be notified in writing within 30 days of any
changes to the information provided on the application. Applications must include the following
information at a minimum:
(a) The name, address, telephone number, e-mail address, and date of birth of the Property
Owner.
Attachment 1
(b) The name, address, telephone number, e-mail address, and date of birth of a designated
local Manager if the Owner resides outside of the Twin Cities metropolitan service area.
(c) The local address of the rental dwelling and the number of rental dwelling units within the
dwelling.
(4) Property Contact Information. For single-family residential dwellings, the license applicant must
provide 24 hour contact information for one person in any of the following categories. For all other
types of dwellings, the license applicant must provide 24 hour contact information for two people in
any of the following categories.
(a) At least one Owner of the rental dwelling or rental dwelling unit;
(b) At least one Person, if different from the Owner, who is responsible for managing the
property in compliance with this and any other Code requirement pertaining to the rental
dwelling or rental dwelling unit who must reside in the Twin Cities metropolitan service
area; or
(c) If the Owner uses a property management company for management of the rental dwelling
or rental dwelling unit, the name and contact information of the person at the property
management company responsible for managing the rental dwelling or rental dwelling unit.
(5) Number and Type of Units. The license application must contain the number of units and types of
units (condominium, apartment, townhome, etc.) within the rental dwelling.
(6) Rental Dwelling Inspection Certificate. The license application must be accompanied by a rental
dwelling inspection certificate including an applicable inspection fee before a rental license will be
issued. Rental dwellings with four or more units will be inspected on a schedule between one and
three years as determined by the City Manager. Rental dwellings with less than four units will be
inspected on a schedule between one and three years as determined by the City Manager. The
City Manager will adopt an inspection policy for rental dwellings taking into account the property's
inspection history, history of compliance with Federal, State and Local Law, and the history of
inspections, property maintenance violations, and other code enforcement violations at the
property.
(7) Written Tenant Application and Lease Agreement Required. The Licensee must screen all
potential tenants using a written tenant application. The Licensee must use a written lease
agreement for all tenants. The Licensee must have all tenants execute a Minnesota Crime Free
Housing Lease Addendum. The written tenant application must include sufficient information so
that the Licensee can conduct appropriate criminal background and credit checks on prospective
tenants. The written tenant application and written lease agreement and the Minnesota Crime
Free Housing Lease Addendum for each tenant must be part of the Licensee's files. Upon request
the Licensee must show proof, satisfactory to the City, that the Licensee is maintaining the
documents required by this section. Failure to use, maintain, or provide these documents to the
City upon request is a violation of this Chapter.
(8) Fees. There shall be a licensing fee as established by the City's Fee Schedule. All fees and fines
shall be charged to and payable by the Property Owner.
Attachment 1
12-603 - Changes in Ownership.
A license is non-transferable. If there is a change in the ownership of the rental dwelling or rental dwelling
unit the license automatically expires. The new owner must apply for a license under this Chapter prior to
the change in ownership.
12-604 - Changes in the Rental Dwelling or Rental Dwelling Unit.
(1) If changes are made in the number or type of units within the licensed premises, the Licensee
shall file an application to amend the rental license. Depending on the nature of the changes, the
City may require a new property inspection.
(2) Single Family Conversion to Rental. A single family home that is converted to a rental property
shall pay a conversion fee. The conversion fee shall be established by resolution of the City
Council. The conversion fee includes the rental license application fee and inspection fee for the
first year and includes fees for monitoring the property during the first year of operation as a rental
property. Monitoring will be conducted on a schedule to be determined by the City Manager. Fees
charged for required educational training are not included in the conversion fee.
12-605 - Annual License.
Licenses are valid for one year from the date of issuance.
12-606 - Tenant Background Checks and Roster.
As a condition of the license, the Licensee must, as a continuing obligation, conduct criminal background
checks and credit history checks on all prospective tenants and maintain a current roster of tenants and
other persons who have a lawful right to occupy the rental dwelling or rental dwelling units. The Licensee
must designate the name of the person or persons who will have possession of the roster and must
promptly notify the City Manager of any change in the identity, address or telephone numbers of the
designee. The roster must be available for inspection by City officials upon request. If a person under
investigation by the City claims a lawful right to occupy a rental dwelling unit or be present on the rental
property, the City Manager may request to inspect the lease for the unit in which the person claims to
reside. Upon such request, the Licensee shall provide the lease for inspection.
12-607 - Notification Requirements for Public Hearings.
The Licensee must, as a continuing obligation of the license, provide written notice to tenants or in the
alternative, post the written notice in the lobby or common area of the rental dwelling for any public
hearing notice received by the Licensee that pertains to the rental dwelling, the rental dwelling unit, the
property on which the rental dwelling is located or any adjacent rights of way.
12-608 - Display of License Certificate.
For dwellings containing four or more dwelling units, the rental license certificate must be displayed in the
lobby or other common area visibly accessible to all tenants of the licensed dwelling. The license
certificate must be encased in a frame with a clear glass or plastic surface over the certificate and must
be mounted securely to a wall. For dwellings containing less than four dwelling units, the Licensee must
provide a copy of the rental license certificate to each tenant by attaching the copy to the Tenant's copy of
the executed lease agreement.
Attachment 1
12-609 - Compliance with Minn. Stat. §211 B.20.
Licensee must comply with the requirements of Minn. Stat. §211 B.20 and allow access to candidates who
have filed for election to public office and seek admittance to the rental dwelling solely for the purpose of
campaigning.
12-610 - Crime-Free Rental Housing Phase I Training Required.
The Licensee or the Manager with control over the rental dwellings and rental dwelling units must attend,
at a minimum, the Phase I crime-free rental housing educational course or similar course as approved by
the City Manager as a condition of receiving or renewing a license. The cost of attending the educational
requirements under this section shall be paid in addition to any license and inspection fees. Course
attendance will be required on a schedule to be determined by the City Manager.
12-611 - Responsibility for Acts of Manager.
Licensees are responsible for the acts or omissions of their Managers as it pertains to the rental dwelling.
12-612 - Maintenance Standards.
(1) It is the responsibility of the Licensee to assure that every rental dwelling and rental dwelling unit
is maintained in compliance with all City Ordinances and State and Federal laws. A violation of
any of the following City Code Titles or Chapters constitutes a public nuisance and may be abated
under the provisions of the Nuisances Chapter (18-26) or Administrative Offenses Chapter (Sec 1-
17) of City Code:
a. Building and Building Regulations Code (Chapter 12),
b. Zoning Code (Chapter 44),
c. Animals Code (Chapter 10),
d. Fire Prevention and Protection Code (Chapter 20),
e. Offenses and Miscellaneous Provisions (Chapter 24).
(2) Snow and Ice Removal. Rental dwellings containing four or more dwelling units must remove
snowfalls of one inch or more, or successive snowfalls accumulating to a depth of one inch or
more, from all walkways, sidewalks and steps within 12 hours of cessation of the snowfall. Rental
dwellings containing four or more dwelling units must remove snowfalls of three inches or more, or
successive snowfalls accumulating to a depth of three inches or more from parking aisles, parking
areas, and drives within 72 hours of cessation of the snowfall.
(3) Inspections. The Building Official, Building Inspector, Fire Inspector, Police Chief and their
respective representatives are authorized to make inspections reasonably necessary to enforce
this Chapter. All authorized inspectors have the authority to enter any rental dwelling or rental
dwelling unit at all reasonable times. Pursuant to Minnesota Statutes, Section 5048.211, the
Licensee is responsible for scheduling the inspection and notifying any existing tenant of the
inspection. The Licensee must provide access to the requesting City Official at the date and time
of the scheduled inspection. Failure to provide access for any reason may result in a re-inspection
fee, in addition to any other sanctions imposed for noncompliance.
Attachment 1
(4) Access by Occupant. Each occupant of a rental dwelling or rental dwelling unit shall give the
Licensee or Manager or authorized City Official access to any part of such rental dwelling or rental
dwelling unit at reasonable times for the purpose of inspection, maintenance, repairs or alterations
as are necessary to comply with the provisions of this Chapter.
(5) Recycling. In addition to garbage pickup, rental dwellings must have recycling containers available
for all occupants. Rental dwellings with four or more dwelling units must provide weekly recycling
service at a minimum.
12-613- License Denial, Suspension, or Revocation.
(1) Grounds for Denial, Suspension or Revocation. The City Manager may deny or not renew a
license and the City Council may revoke or suspend a license for any of the following reasons that
shall also constitute a violation of this Chapter:
(a) The property does not conform to City Code Citation Needed, Land Development
Regulations;
(b) The property does not comply with a health, building, maintenance, or other provisions of
the City Code or State Law;
(c) The Licensee has failed to pay the license fee, inspection fees, the investigation fee, or a
fine that has been imposed;
(d) The Licensee has made fraudulent statements, misrepresentations, or false statements in
the application or investigation or in any information required by this Chapter;
(e) Conviction of a background check crime as defined in Minnesota Statutes Section
299C.67, subd.2, as may be amended from time to time; or any crime related to the
business licensed and failure to show, by competent evidence, rehabilitation and present
fitness to perform the duties of the business;
(f) Operating or allowing the rental property to be used in such a manner as to constitute a
breach of the peace, a menace to the health, safety, and welfare of the public, or a
disturbance of the peace or comfort of the residents of the City, upon recommendation of
the Chief of Police;
(g) Actions unauthorized or beyond the scope of the license granted;
(h) The Licensee's rental license to operate a rental dwelling in another jurisdiction has been
denied, revoked, or suspended;
(i) Failure to schedule and/or allow rental or building inspections of the licensed premises, for
the purpose of ensuring compliance with rental licensing requirements, City Code
requirements, State building codes, or other applicable State or Federal law;
(j) Failure to continuously comply with all conditions required as precedent to the approval of
the license;
(k) Real estate or personal property taxes have become delinquent and the property owner
and the Licensee are the same person or entity, or have any common ownership where
they are a different person or entity;
Attachment 1
(1) Violation of any regulation or provision of the City Code applicable to the activity for which
the license has been granted, or any regulation or State or Federal law that may be
applicable;
(m)Excessive calls for service as determined by the Chief of Police based on the number and
nature of the calls compared to the number of dwelling units on the property when the
Licensee has been notified of the calls by the Chief of Police and the Licensee has failed to
supply an appropriate written action plan for reducing the calls for service, or when the
calls for service exceed an established threshold a second time within 12 months of
completing an action plan for previously exceeding the threshold.
(n) Failure to actively pursue the eviction of tenants who have violated the provisions of the
crime free lease addendum or who have otherwise created a nuisance in violation of the
provisions of the written lease; and
(o) Other good cause as determined by the City Council after conducting a public hearing.
The City Council may revoke a license or suspend a license for a set period of time or until violations of
City Code, or State or Federal law are corrected and, in addition, impose a civil penalty for each violation
or impose a combination of these sanctions.
(2) Temporary Suspension. The City Council may temporarily suspend a license pending a hearing
on the suspension or revocation when, in its judgment, the public health, safety, and welfare is
endangered by the continuance of the licensed activity.
(3) Notice. Before the suspension or revocation of the rental license, the City must provide written
notice informing the Licensee of the right to a hearing. The notice must provide at least 20
calendar days notice of the time and place of the hearing and must state the grounds for the
proposed suspension or revocation of the license. The notice may be served upon the Licensee
personally, by leaving the notice at the licensed premises with the designated Manager, or by
certified mail to the address listed on the license application.
(4) Hearing. A hearing will be conducted before the City Council at a public meeting. The Licensee
shall have the right to be represented by Counsel, the right to respond to the charged violations,
and the right to present evidence through witnesses. The rules of evidence do not apply to the
hearing and the City Council may rely on all evidence it determines to be reasonably credible. The
determination to suspend or revoke the license shall be made upon a preponderance of the
evidence. It is not necessary that criminal charges be brought in order to support a suspension or
revocation of a license violation nor does the dismissal or acquittal of such a criminal charge
operate as a bar to suspension or revocation.
(5) Final Decision. Following the hearing, the Council may revoke or suspend the license for all or any
part of the licensed premises, may stay the revocation or suspension upon such terms and
conditions as it deems reasonable and necessary to accomplish the purposes of this Chapter, or
grant or continue the license. If the Council suspends or revokes the rental license, the Council
may also order that any rent payable during the suspension or revocation period be paid into an
escrow account to be maintained by the City. The City may use the escrowed funds to pay for the
cost of abating violations at the property. Funds that remain in the escrow account after paying for
abatement items shall be returned to the Licensee upon the Licensee receiving a valid rental
license or upon the sale of the rental to an unrelated purchaser and after the rental dwelling has
been brought into full compliance with City Code. The decision by the City Council following a
hearing is final. Upon a decision to suspend a license, no new application from the current
Licensee for the same rental dwelling will be accepted for a period of time specified in the