HomeMy WebLinkAbout2019-07-18 HEDC Packet
AGENDA
CITY OF MAPLEWOOD
HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
Thursday,July18, 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.April 18, 2019
5. New Business:
a.Restructuring the Maplewood Area Economic Development Authority
b.Update on 2019 Business Engagement Program
c.Community Engagement Breakfast (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
APRIL18, 2019
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 6:00p.m.byActing Chairperson Tkachuck.
2.ROLL CALL
Commissioners
Denis Dupee, CommissionerPresent
Brian Finley, CommissionerPresent
Darryl Henchen, CommissionerPresent
Mark Jenkins, ChairpersonAbsent
Jennifer Sauer, CommissionerAbsent
JoyTkachuck, Vice ChairPresent
Dennis Unger, CommissionerPresent
Staff
Michael Martin, Planner, Economic Development Coordinator
Mike Funk, Assistant City Manager
Scott Nadeau, Public Safety Director
3.APPROVAL OF AGENDA
Staff requested amending the agenda to moveitem 6. a. Rental Housing License Program after
agenda item 5 a.
Commissioner Ungermoved to approve the agenda as amended.
Seconded by CommissionerFinley.Ayes –All
The motion passed.
4.APPROVAL OF MINUTES
CommissionerDupeewould like the language clarified in 5 b. regarding visitor presentations
removing the word restoreand changing it to maintain.
Commissioner Dupeemoved to approve the minutesfor January 17,2019,HEDC Minutes as
amended.
Seconded by CommissionerFinley.Ayes –All
The motion passed.
5.NEW BUSINESS
a.Conducting City Business and Public Meetings Presentation
i.Assistant City Manager, Mike Funk gave the presentation on Conducting City Business
and Public Meetings.
April 18, 2019
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Housingand Economic Development CommissionMeetingMinutes
The agenda was amended to hear item 6.a. Rental Housing License Program before 5.b.
b.Update on Agreement between Maplewood Area EDA and Larkin Dance Studio
i.Economic Development Coordinator, Michael Martin gave the update on the Agreement
between Maplewood Area EDA and Larkin Dance Studioat 1400 Highway 36 East.
No action was needed.
c.Resolution of Appreciation for Benosi Maduka
i.Economic Development Coordinator, Michael Martin gave the report onthe Resolution of
Appreciation for Benosi Maduka.
Acting Chairperson Tkachuck moved to approve the Resolution of Appreciation for Benosi
Maduka.
Seconded by Commissioner Unger.Ayes –All
The motion passed.
d.New Member Orientation
i.Economic Development Coordinator, Michael Martin went throughthe New Member
Orientationand introduced the newest member Darryl Henchen to the HEDC commission.
ii.Darryl Henchen introduced himself as the newest HEDC commissioner.
6.UNFINISHED BUSINESS
a.Rental Housing License Program(Thisagendaitem was moved andheard after 5 a.)
i.Economic Development Coordinator, Michael Martin gave the presentation on the Rental
Housing License Program and answered questions of the commission.
ii.Maplewood Public Safety Director, Scott Nadeau addressed and answered questions of
the commission.
The commission had concerns regarding the $500 one-time conversion fee as shown in the staff
report.
Commissioner Henchen moved to approve the Rental Housing Licensing Program.
Seconded by Commissioner Dupee.Ayes –All
The motion passed.
7.VISITOR PRESENTATIONS
None.
8.COMMISSIONPRESENTATIONS
None.
April 18, 2019
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Housingand Economic Development CommissionMeetingMinutes
9.STAFF PRESENTATIONS
a.Development Summary
Staff discussed a few upcoming projects that are in the works. More information will be provided
at the next HEDC meeting.
Staff also discussed the North End Meeting group and the commissioners that have been
attending the North End Meetings commented on things that have been discussed and the vision
of the area around the Maplewood Mall, St. John’s Hospital and the surrounding area. The next
North End Meeting is April 24, 2019 at 6 p.m. and more information can be found at the city’s
website at www.maplewoodmn.gov
.
10.ADJOURNMENT
Acting ChairpersonTkachuckadjourned the meeting at 8:04p.m.
April 18, 2019
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Housingand Economic Development CommissionMeetingMinutes
HOUSING & ECONOMIC DEVELOPMENT COMMISSIONSTAFF REPORT
Meeting Date July 18, 2019
REPORT TO:
Housing and Economic Development Commission
REPORT FROM:Jeff Thomson, Community Development Director
PRESENTER:
Ron Batty, City Attorney
AGENDA ITEM:Restructuring the Maplewood Area Economic Development Authority
Action Requested:MotionDiscussionPublic Hearing
Form of Action:ResolutionOrdinanceContract/AgreementProclamation
Policy Issue:
The city council has expressed interest in making its economic development authority (the “EDA”)
more active in development and redevelopment of the community. This itempresents an overview
of city’s current EDA and HRA structure, outlines the state statutes regarding EDA powers,and
recommendationsfor restructuring the city’s EDA.
Recommended Action:
City staff recommends that the Housing and Economic Development Commission discuss the
restructuring of the Maplewood Area Economic Development Commission.
The city council will be considering the resolutions for restructuring the EDA at its meeting on Monday,
July 22, 2019.
Fiscal Impact:
Is There a Fiscal Impact?NoYes, the true or estimated cost isenter amount or $0.00.
Financing source(s):Adopted BudgetBudget ModificationNew Revenue Source
Use of ReservesOther:
Strategic Plan Relevance:
Financial SustainabilityIntegrated CommunicationTargeted Redevelopment
Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt.
This is intended to present information to allow HEDC and the city council to determine the desirability
of using its EDA more assertively in development and redevelopment.
Background
On July 27, 2009 the city council adopted an ordinance establishing the Maplewood Area Economic
Development Authority (EDA), which establishes the five members of the city council as the board of
commissioners of the EDA.The ordinance confers on the EDA authority only under the EDA Act, and
not the authority of a Housing and Redevelopment Authority (HRA). The ordinance left in place
Maplewood’s HRA, which was established in 1974. The city council retained the HRA powers with
the Housing and Economic Development Commission (HEDC).Therefore, the city’s authority in
housing, economic development, and redevelopment iscurrently divided between the EDA and the
HEDC.
The city has been involved in economic development activities both before and after creation of the
EDA. As part of the city’s strategic plan of targetedredevelopment, and the city council’s objective to
be more proactive in economic development activity, the city is considering restructuring the duties
and authorities of the EDA.The HRA responsibilities are significant, and the duties more closely align
with the city council’s general authority regarding taxing, budgeting, issuance of bonds, and
sale/purchase of city property. Therefore, the city council will be considering adopting a new enabling
resolution which would grant the EDA all of the power permitted by state law, which includes the
powers of an HRA. The city council will also be considering repealing the existing ordinances
establishing the EDA and HRA which would avoid conflict about the authority of the EDA and HEDC.
The HEDC would continue to be involved as an advisory commission to the city council and EDA on
housing and economic development issues in the same manner as the past and currentpractice.
The revised structure of the EDA wouldbe the most efficient structure for the city council and the
EDA to initiate development and redevelopment projects consistent with the city’s goals and
objectives. The EDA will also thenbesuited to utilize tax increment financing, which has been used
by the city council in the past as an effective tool to accomplish its economic development goals and
objectives.
Attached is a memorandum from the city attorney outlining some of the powers of an EDA and
comparing them to the powers conferred upon a Housing and Redevelopment Authority (“HRA”). A
principal advantage of an EDA is that it can exercise the powers of an EDA AND an HRA AND of a
city under the City Development Authorities Act.
Attachments
1.Memorandum detailing HRA and EDA statutory powers.
470 US Bank Plaza
200 South Sixth Street
Kennedy
Minneapolis MN 55402
&
(612) 337-9300 telephone
(612) 337-9310 fax
Graven
http://www.kennedy-graven.com
C H A R T E R E D
SUMMARY OF MINNESOTA HRA AND EDA POWERS
City of Maplewood
June 25, 2018
Ron Batty
Following is a generalized summary of the powers of a housing and redevelopment authority (“HRA”)
under Minnesota Statutes, Sections 469.001 through 469.047 (“HRA Act”) and an economic
development authority (“EDA”) under MinnesotaStatutes, Sections 469.090 through 469.1082 (“EDA
Act”).
A. HRAs
1. Housing
Housing powers are generally grouped under the definition of a “housing project” and a “housing
development project.”
Housing projects are any work or undertaking to providedecent, safe and sanitary dwellings for persons
of low incomeand their families. Section 469.002, Subd. 13. Such persons are those who lack a sufficient
income to enable them, without financial assistance, to live in decent, safe and sanitary dwellings without
overcrowding.
Housing development projects are any work or undertaking to provide housing for persons of moderate
income and their families.Section 469.002, Subd. 15. Such persons are those whose income is not
adequate to cause private enterprise to provide, without governmental assistance, a substantial supply of
decent, safe and sanitary housing and rents or prices within their financial means.
The statute includes a more specific schedule of powers that fleshes out this general authority, most of
which are discussed below. Generally, HRAs may do all things necessary and convenient to acquire,
construct and operate housing projects and housing development projects.
Key specific powers that supplement the general language above include:
a.Interest reduction programs, allowing financial assistance to reduce the cost of interest on
privately financed housing intended primarily for occupancy by low and moderate income
individuals. Sections 469.012, Subds. 7 through 9.
b.Housing rehabilitation loan and grant programs, for property owned by person of low and
moderate income. Section 469.012, Subd. 6.
c.Down payment assistance loans and grants, where the HRA finds that the program is necessary
to promote economic integration or encourage owner occupancy of single family residences.
Section 469.012, Subd. 13
HRAs may finance housing projects and housing development projects through issuance of bonds secured
by a mortgage on HRA property, a pledge of HRA revenues, or a pledge of grants or contributions from
the federal government or any other source. Section 469.012, Subd. 1q, Section 469.034. If certain
criteria are met, and subject to certain limits, the HRA may sell bonds for housing development projects
secured by the city's general obligation pledge, with the city council's approval following a public hearing.
Section 469.034, Subd. 2.
2. Redevelopment
HRA powers regarding redevelopment are described under the powers to create and operate
“redevelopment projects.” That term means, generally, any work or undertaking to acquire property in
order to remove, prevent or reduce blight, blighting factors, or the cause of blight; clear any areas acquired
and install, construct, or reconstruct utilities and site improvements essential to the preparation of sites
for uses in accordance with the redevelopment plan; sell or lease land for uses in accordance with the
redevelopment plan; prepare a redevelopment plan; or conduct an “urban renewal project,” which itself
is broadly defined to include any undertaking for the elimination or prevention of blighted or deteriorating
areas. Section 469.002, Subd. 14.
The specific schedule of powers regarding redevelopment includes the power:
a.To establish a redevelopment project. The HRA (and city council) must approve a redevelopment
plan, which is a general plan for the development or redevelopment of the project area. After a
public hearing, with at least 10 days’ published notice, the city council must find that:
(i) the land in the project area would not be made available for redevelopment without
the financial aid to be sought;
(ii) the redevelopment plans for the redevelopment areas in the locality will afford
maximum opportunity, consistent with the needs of the locality as a whole, forthe redevelopment
of the areas by private enterprise; and
(iii) the redevelopment plan conforms to a general plan for the development of the locality
as a whole.
Section 469.028, Subd. 2.
1
b.To undertake, prepare, carry out and operate projectsand to provide for the construction,
reconstruction, improvement, extension, alteration, or repair of any project or any part thereof.
Section 469.012, Subd. 1d.
c.To give, sell, transfer, convey or otherwise dispose of real or personal property or anyinterest
therein, and to execute leases, deeds, conveyances, negotiable instruments, purchase agreements
and other contracts or instruments and take action that is necessary or convenient to carry out the
purposes of the HRA Act. Section 469.012, Subds. 1e and 1f.
d.To acquire real or personal property or any interest therein by gift, grant, purchase, exchange,
lease, transfer, bequest, devise, or otherwise, and by exercise of the power of eminent domain.
Section 469.012, Subd. 1g.
e.To borrow money or other property and accept contributions, grants, gifts, services or other
assistance from the federal government, the state government, state public bodies, or from any
other public or private sources. Section 469.012, Subd. 1o.
f.To cooperate with or act as the agent for the federal government, the state or any state public body,
or any agency or instrumentality of the forgoing, in carrying out the provisions of the HRA Act.
Section 469.012, Subd. 1l.
g.To issue bonds for any corporate purposes and to secure the bonds by mortgages upon property
held or to be held by the HRA or by pledge of its revenues, including grants or contributions.
Section 469.012, Subd. 1q; Section 469.034.
h.To levy a special benefits tax on all property in the HRA's area of operation (generally, the city
as a whole). The city council must approve the tax levy either annually or without a time
limitation. The HRA must file a budget with the city in accordance with the procedures for
executive departments of the city. The special benefits tax may not exceed 0.0185% of the
estimated market value in the city. Section 469.033, Subd. 6.
i.To carry out studies of the housing and redevelopment needs within its area of operation and of
the meeting those needs. Section 469.012, Subd. 1t.
j.To lease or rent any dwellings, accommodations, land, buildings, structures or facilities included
in any project, and, subject to limitations contained in the HRA Act, to establish and revise the
rents or charges therefor. Section 469.012, Subd. 1v.
________________________
1
The term “project,” unless otherwise indicated, includes a housing project, a housing development project, a
redevelopment project, and an interest reduction program. Section 469.002, Subd. 12.
k.To own, hold and improve real or personal property and to sell, lease, exchange, transfer, assign,
pledge or dispose of any real or personal property or any interest therein. Section469.012, Subd.
1w. Sale or lease of land in a redevelopment project generally requires a public hearing with 10
days’ published notice and restrictions on use or resale of the property to accomplish the public
purpose of the redevelopment plan. Section 469.029, Subds. 1 and 2.
l.To exercise the powers of a city in carrying out a commercial rehabilitation loan program under
Section 469.184, if the city by ordinance so authorizes. Section 469.184, Subd. 7.
m.To make loans to a business, a for-profit or nonprofit organization, or an individual for any
purpose that an HRA is otherwise authorized to carry out under the HRA Act. Section469.192.
In addition to the powers described above, HRAs are one of the “authorities” with the power to establish
tax increment financing districts (with city council approval) under Sections 469.174 through 469.1794.
The tax increment must be used to finance or otherwise pay the “public redevelopment costs” pursuant
to the HRA Act, including administrative expense of the HRA allocable to the project and debt charges
an all other costs authorized to be incurred by the HRA in the HRA Act.
B.EDAs
The powers of an EDA are more ambiguous and complex than those of an HRA. Most of the powers
specified in the EDA Act itself must be exercised within an “economic development district” (not to be
confused with a tax increment financing district with the same name).
The EDA Act offers significant flexibility because of its cross-referencing provisions. An EDA has all
the powers of an HRA (described above) and all the powers of a city under Minnesota Statutes, Sections
469.124 through 469.133 (the “Municipal Development District Act”). The Municipal Development
District Act provides broad authority to carry out economic development. Further, an EDA may use
powers under Sections 469.152 through 469.1655 (the “Municipal Industrial Development Act”) for a
purpose under the HRA Act or EDA Act, and may use the powers under the HRA Act and EDA Act for
a purpose under the Municipal Industrial Development District Act. Section 469.101, Subd. 12.
In addition to these cross-referenced powers, the EDA Act includes some specific unique powers,
including the power:
a.To become a limited partner in a partnership “whose purpose is consistent with the authority’s
purpose” (Section 469.101, Subd. 6).
b.To carry out public relations activities in furtherance of the city’s economic development (Section
469.101, Subd. 16).
c.To invest in certain venture capital businesses (Section 469.101, Subd. 23).
The net result is that EDAs generally have similar powers to HRAs, except that the purposes extend
beyond housing and redevelopment to include the broader goals of economic development.
A final point involves tax levies. EDAs have access to two types of tax levies. First, an EDA may use its
HRA powers and levy are HRA tax (subject to city council approval). This is a tax over and above what
the city may levy on behalf of the EDA.
Secondly, the EDA Act authorizes a tax levy for EDAs as described in Section 469.107. If the EDA
requests, a city may(but is not required to) levy a tax “for the benefit of the authority.” The maximum
amount is 0.01813% of the city’s estimated market value. Unlike the HRA levy described above, this is
not a separate levy made by the EDA; it is made by the city and is included within the city’s levy limits.
As a result this so-called “EDA levy” is not a significant benefit except in unusual circumstances.
Like HRAs, EDAs may issue revenue bonds, and technically may issue general obligations bonds secured
by the city’s full faith and credit (with consent of the city council).
HOUSING & ECONOMIC DEVELOPMENT COMMISSIONSTAFF REPORT
Meeting Date July 18, 2019
REPORT TO:
Housing and Economic Development Commission
REPORT FROM:Jeff Thomson, Community Development Director
PRESENTER:
Michael Martin, Assistant Community Development Director
AGENDA ITEM:Update on 2019 Business Engagement Program
Action Requested:MotionDiscussionPublic Hearing
Form of Action:ResolutionOrdinanceContract/AgreementProclamation
Policy Issue:
The city has signed an agreement with the Saint Paul Area Chamber of Commerce to continue the
city’s business engagement and outreach program. This is an update on the current status of the
2019 program.
Recommended Action:
No action is required.
Fiscal Impact:
Is There a Fiscal Impact?NoYes, the true or estimated cost isenter amount or $0.00.
Financing source(s):Adopted BudgetBudget ModificationNew Revenue Source
Use of ReservesOther:
Strategic Plan Relevance:
Financial SustainabilityIntegrated CommunicationTargeted Redevelopment
Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt.
Background
In 2019, the city is partnering with the Saint Paul Area Chamber of Commerce (SPACC) to continue
the city’s business engagement and outreach program. The Business Recruitment, Expansion and
Attraction (BRE&A) program will build on the past efforts that have been completed in 2017 and 2018.
The program was developed using the following principles:
Demonstrate to businesses that the community appreciates their presence
Help existing businesses solve immediate problems
Understand the needs of the businesses inthe communityand share information on city and
other local and regional resources that are available
Build community capacity to sustain growth and development over the long term and assist in
establishing a strategic plan for economic development
Increase businesses’ ability to compete in regional, national, and global markets
The SPACC has identified and targeted business that will be visited this year. The businesses include
legacy business that have been visited in the past (3M, school districts), as well as businesses that
we have not reached in previous years. The followingupcoming business visits have been scheduled:
rd
Hill-Murray School –July 23at 10:00 a.m.
th
Crooked Pint –July 30at 2:00 p.m.
th
Community Dental –August 8at 1:00 p.m.
Oncethe business visits are complete and the results analyzed, the SPACC will give a full reportand
presentation to the city.
Attachments
None