Loading...
HomeMy WebLinkAbout2022 01-20 HEDC Meeting PacketMeeting is also available on Comcast Ch. 16 and streaming vod.maplewoodmn.gov AGENDA CITY OF MAPLEWOOD HOUSING AND ECONOMIC DEVELOPMENT COMMISSION Thursday, January 20, 2022 6:00 P.M. Held Remotely Via Conference Call Dial 1-888-788-0099 or 1-312-626-6799 When Prompted Enter Meeting ID: 869 1820 9762# No Participant ID, Enter # When Prompted A.Call to Order B.Roll Call C.Approval of Agenda D.Approval of Minutes 1. October 21, 2021 Housing and Economic Development Commission Meeting Minutes E.New Business 1.Election of Officers 2.Rules of Procedure Annual Review F.Unfinished Business 1.2021 Business Engagement Program 2.Gladstone Update 3.Single-Family Housing Rehabilitation Program G.Commissioner Presentations H.Staff Presentations 1.State of the City (No Report) 2.Development Update (No Report) 3.Next Meeting – April 21, 2022 (No Report) I.Visitor Presentations - 3 minute time limit per person J. Adjournment THIS PAGE IS INTENTIONALLY LEFT BLANK D1 October 21, 2021 Housing and Economic Development Commission Meeting Minutes 1 MINUTES OF THE HOUSING AND ECONOMIC DEVELOPMENT COMMISSION 1830 COUNTY ROAD B EAST, MAPLEWOOD, MINNESOTA THURSDAY, OCTOBER 21, 2021 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 Sarah Burdash, Commissioner Present Darryl Henchen, Commissioner Present Mark Jenkins, Chairperson Present Constance Robinson, Commissioner Absent Joy Tkachuck, Vice Chair Absent Bao Vang, Commissioner Present Staff Jeff Thomson, Community Development Director Bill Knutson, City Council Liaison Prior to the start of the meeting Staff presented a revised agenda adding 3. Oath of Office and 6. a. Resolution of Appreciation for Dennis Unger. 3.OATH OF OFFICE Community Development Director, Jeff Thomson administered the oath of office to new commission members Bao Vang and Sarah Burdash. a.Bao Vang b.Sarah Burdash c.Constance Robinson (not present) 4.APPROVAL OF AGENDA Commissioner Burdash moved to approve the revised agenda as submitted by staff. Seconded by Commissioner Henchen. Ayes – All The motion passed. 5.APPROVAL OF MINUTES Commissioner Vang moved to approve the HEDC minutes for April 15, 2021 as submitted. Seconded by Commissioner Burdash. Ayes – Commissioners Burdash, Henchen, Unger, Vang Abstain – Chairperson Jenkins HEDC Packet Page Number 1 of 48 D1 October 21, 2021 Housing and Economic Development Commission Meeting Minutes 2 The motion passed. Commissioner Burdash moved to approve the Joint Meeting Minutes for July 26, 2021 as submitted. Seconded by Commissioner Vang. Ayes – Jenkins, Burdash, Vang Abstain – Commissioner Henchen The motion passed. 6.NEW BUSINESS a.Resolution of Appreciation for Dennis Unger Community Development Director, Jeff Thomson recommended approval of the Resolution of Appreciation for Dennis Unger who served on the HEDC from July 2011 until September 2021. Chairperson Jenkins read the Resolution of Appreciation for Dennis Unger. Staff and the commission thanked Dennis Unger for his service on the HEDC Commission. Commissioner Henchen moved to approve the Resolution of Appreciation for Dennis Unger. Seconded by Commissioner Vang. Ayes – All The motion passed. This item will go to the city council meeting on November 8, 2021. b.Tax Increment Financing Agreement, 2501 Londin Lane East Community Development Director, Jeff Thomson presented the report on the Tax Increment Financing Agreement, 2501 Londin Lane East and answered questions of the commission. Commissioner Henchen moved to recommend approval of the Tax Increment Financing Agreement for 2501 Londin Lane East. Seconded by Commissioner Burdash. Ayes – Jenkins, Burdash, Henchen Abstain – Commissioner Vang The motion passed. c.Single-Family Housing Rehabilitation Program Community Development Director, Jeff Thomson gave an update on the Single-Family Housing Rehabilitation Program. No action needed at this time. d.2021 Business Awards Community Development Director, Jeff Thomson gave the report on the 2021 Business Awards. HEDC Packet Page Number 2 of 48 D1 October 21, 2021 Housing and Economic Development Commission Meeting Minutes 3 In the past the awards were for the Entrepreneurship/Innovative Growth Award, Environmental Sustainability Award and the Community Contribution Award. Staff requested that the commission notify staff in early November if they would like to make any changes to the types of awards. Commissioner Burdash and Vang volunteered to be on the subcommittee. Chairperson Jenkins recommended checking with commission member Joy Tkachuck who is not present this evening since she has been involved in the award process in the past and to ask new commissioner Constance Robinson who absent tonight if there is interest in this process. 7.UNFINISHED BUSINESS None. 8.VISITOR PRESENTATIONS None. 9.COMMISSION PRESENTATIONS None. 10.STAFF PRESENTATIONS a.Development Update Community Development Director Thomson discussed the development update: -North End Zoning District (including Birch Run Station) -The American Cooperative, (1875 East Shore Drive) for age 62 plus for sale units -South Maplewood Area Redevelopment (Ponds at Battle Creek) -Scooters Coffee at two future locations at 2730 Stillwater Rd and 2228 Maplewood Drive 11.ADJOURNMENT Chairperson Jenkins adjourned the meeting at 7:27 p.m. HEDC Packet Page Number 3 of 48 THIS PAGE IS INTENTIONALLY LEFT BLANK HEDC Packet Page Number 4 of 48 HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 20, 2022 REPORT TO: Housing & Economic Development Commission REPORT FROM: Jeff Thomson, Community Development Director PRESENTER: Jeff Thomson, Community Development Director AGENDA ITEM: Election of Officers Action Requested:  Motion ☐Discussion ☐ Public Hearing Form of Action: ☐Resolution ☐ Ordinance ☐Contract/Agreement ☐ Proclamation Policy Issue: HEDC’s Rules of Procedure state that the commission will elect its officers at the regular meeting in January. The officers include a chair and a vice chair and the new terms begin following the election. Recommended Action: a.Motion to elect ________________ as the Chair of the Housing and Economic Development Commission for 2022. b.Motion to elect ________________ as the Vice Chair of the Housing and Economic Development Commission for 2022. 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 officers and roles are established in HEDC’s Rules of Procedures. Background: The duties of the chair include presiding over meetings and representing the commission at city council meetings where a commission item is on the agenda. The duties of the vice chair include acting in place of the chair when the chair is absent or not able to attend a city council meeting. In 2021, Commissioner Jenkins served as chair and Commissioner Unger served as vice chair. E1 HEDC Packet Page Number 5 of 48 Attachments: None E1 HEDC Packet Page Number 6 of 48 HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 20, 2022 REPORT TO: Housing & Economic Development Commission REPORT FROM: Jeff Thomson, Community Development Director PRESENTER: Jeff Thomson, Community Development Director AGENDA ITEM: Rules of Procedure Annual Review Action Requested:  Motion ☐Discussion ☐ Public Hearing Form of Action: ☐Resolution ☐ Ordinance ☐Contract/Agreement ☐ Proclamation Policy Issue: The Housing and Economic Development Commission operates under the Maplewood Code of Ordinances and establishes its own Rules of Procedure. The Rules of Procedure state that HEDC will review the Rules at its first meeting of each year. Recommended Action: Motion to approve the Housing and Economic Development Commission Rules of Procedure. 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. HEDC’s Rules of Procedure establish the meeting procedures and operations of the commission. Background: The Rules of Procedure were adopted in 2013 and amended in 2019. Staff has reviewed the Rules and does not have any recommended changes at this time. Attachments: 1.Rules of Procedure E2 HEDC Packet Page Number 7 of 48 HOUSING AND ECONOMIC DEVELOPMENT COMMISSION RULES OF PROCEDURE Adopted by Housing and Economic Development Commission on February 28, 2013 and Amended on January 15, 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. E2, Attachment 1 HEDC Packet Page Number 8 of 48 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 person) 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 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 E2, Attachment 1 HEDC Packet Page Number 9 of 48 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. E2, Attachment 1 HEDC Packet Page Number 10 of 48 HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 20, 2022 REPORT TO: Housing and Economic Development Commission REPORT FROM: Jeff Thomson, Community Development Director PRESENTER: Jeff Thomson, Community Development Director Yao Yaj, St. Paul Area Chamber of Commerce AGENDA ITEM: 2020/2021 Business Engagement Program Action Requested: ☐ Motion  Discussion ☐ Public Hearing Form of Action: ☐ Resolution ☐ Ordinance ☐ Contract/Agreement ☐ Proclamation Policy Issue: Each year the city partners with the St. Paul Area Chamber of Commerce (SPACC) to complete a business engagement and outreach program. Yao Yaj from SPACC will be at the meeting to present the program report for 2020/2021. 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. The business engagement program was developed using the following principles as a guide to what the program should include: • Demonstrate to businesses that the community appreciates their presence • Help existing businesses solve immediate problems • Increase businesses' ability to compete in regional, national, and global markets • Establish a strategic plan for economic development • Build community capacity to sustain growth and development over the long term These principles and the resulting recommendations build off of the University of Minnesota Extension’s course that was taken by staff members, council members and housing and economic development commission (HEDC) members in 2016. The coursework focused on what to consider F1 HEDC Packet Page Number 11 of 48 when building a program, how to implement the program, who to involve, how to respond to concerns and how to sustain initiatives over time. Background Last year, SPACC, city staff, HEDC members and city council members attended 16 business visits. SPACC has aggregated the results to produce the attached report, which includes background information, businesses visited, business recommendations, program recommendations, and survey results. Attachments 1.Business Engagement Program Report F1 HEDC Packet Page Number 12 of 48 October 15, 2021 Melinda Coleman Jeff Thomson City Manager Community Development Director City of Maplewood City of Maplewood 1830 County Road B East 1902 County Road B East Maplewood, MN 55109 Maplewood, MN 55109 RE: Business Retention, Expansion and Attraction Program Report Dear Ms. Coleman and Mr. Thomson: We are pleased to present our findings from the 2020 Business Retention, Expansion and Attraction Program for the City of Maplewood. The program successfully identified over 40 companies in the community that met the established criteria for a visit and successfully conducted visits with 16 of them. In addition to gathering a set of data that will prove useful in future policy and planning conversations, we had the opportunity to start or strengthen relationships with these businesses and thank them for investing in the City of Maplewood. We all suffered from the impact of COVID-19 and civil uprising in 2020. Many businesses saw their lowest revenue and were on the brink of closing for good. For some, business was good or even better before the pandemic. However, that was not the case for many businesses in Maplewood. COVID-19 also stretched our timeline in completing the BRE&A visits due to quarantine, shutdowns, and people’s comfortability level of social distance. We improvised and virtually visited businesses that accepted. When it was safe to meet people in person, we resumed in person meetings. We know that retaining and facilitating the expansion of existing businesses is an important part of any city’s economic development plan. We commend the City of Maplewood for having the foresight to proactively work to retain your existing base of businesses. We believe we have been successful in achieving the multitude of goals set out by the City of Maplewood in advance of this effort: •Demonstrate to businesses that the community appreciates their presence •Help existing businesses solve immediate problems •Increase businesses’ ability to compete in regional, national, and global markets •Establish a strategic plan for economic development •Build community capacity to sustain growth and development over the long term The City of Maplewood is home to some of the most recognizable businesses in the region, including 3M, Maplewood Mall, and M Health Fairview’s St. John’s Hospital. The city is also host to a diverse collection of companies at all stages of growth. We had the opportunity to strengthen relationships and learn from many of these companies. Some key findings include: •COVID-19 brought many challenges worldwide, from large corporations to small businesses, all businesses suffered in 2020 to some extent. A handful of businesses thrived throughout the pandemic, but overall, most businesses have suffered. •In a result of reacting to the pandemic, more businesses are transitioning to doing businesses remotely and online. Is it still too early to see the long term effects of this, but in the short term F1, Attachment 1 HEDC Packet Page Number 13 of 48 2 has helped businesses socially distance and save large overhead cost, and give workforce more choice and flexibility. • Workforce challenges, namely finding and retaining qualified talent, was the top issue voiced by 10 of the 16 companies we visited. This was especially true in the service and retail sectors. • Companies in the community are well positioned and planning for growth in both revenue and employees in the coming years. Some are planning for growth in terms of acquisitions, adding service areas, and opening more locations in different communities. • Most companies appreciated the BRE&A visit and would like more engagement with city staff and officials. Most businesses are satisfied with service from the City of Maplewood in inspections and public safety • Businesses along the Rice & Larpenteur would like to see more engagement from the city staff and officials. • Maplewood is proving to be one of the most diverse suburbs with the recent increased populations from immigrant refugees and businesses reflecting their residents. In the following report you will find an overview of the Business Retention, Expansion and Attraction Program, as well as a complete set of data and information that was collected through the 16 business visits accomplished, and follow-up surveys administered. Additionally, we offer the following recommendations for consideration by the City of Maplewood: • Continue building relationships with one or several community and technical colleges (i.e. Century College, Saint Paul College, etc.) in effort to bridge the gap of skilled workers with local companies. • Empower the City’s communications department to explore more proactive ways to connect with businesses and “push” relevant information. • Continue Business Retention, Expansion and Attraction efforts, identifying a targeted list of businesses to be visited throughout the year from companies that have had an initial contact with the City. • Continue to work with the St. Paul Area Chamber to coordinate BRE&A visits and share information. • Continue to engage and work with community members and businesses in the Rice & Larpenteur neighborhood and other geographies on the edges of the city. It has been a great pleasure to work with participants of the BRE&A program and members of the city staff in executing this important work. If you have any questions about information contained in this report please contact Yao Yaj at 651-265-2780 or Yao@saintpaulchamber.com. Best Regards, Yao Yaj Manger of Strategic Initiatives F1, Attachment 1 HEDC Packet Page Number 14 of 48 3 Business Retention, Expansion and Attraction Program Report F1, Attachment 1 HEDC Packet Page Number 15 of 48 4 TABLE OF CONTENTS Importance of Business Retention, Expansion and Attraction (BRE&A) ................................................ 5 Program Objectives .................................................................................................................................. 6 Program Organization and Leadership .................................................................................................... 6 Program Participants ................................................................................................................................ 6 Business Selection .................................................................................................................................... 7 Businesses Visited .................................................................................................................................... 8 Visit Analysis.......................................................................................................................................... 8  Visit and Survey Generated Recommendations ................................................................................... 13 Recommendation 1 (continued from 2017, 2018, and 2019) ........................................................... 13 Recommendation 2 (continued from 2017, 2018, and 2019) ........................................................... 13 Recommendation 3 (continued from 2018 and 2019) ...................................................................... 14 Recommendation 4 (new for 2020) ................................................................................................... 14 Recommendation 5 (new for 2020) ................................................................................................... 14 BRE&A Recommendations ............................................................................................................... 14 Recommendation 1 (continued from 2017, 2018, and 2019) ........................................................... 15 Recommendation 2 (continued from 2017, 2018, and 2019) ........................................................... 15 Recommendation 3 (new for 2020) .................................................................................................. 15 Recommendation 4 (new for 2020). .................................................................................................. 15 CONTACT INFORMATION ................................................................................................................. 15 APPENDIX A – BRE&A SURVEY RESULTS ............................................................................................ 16 F1, Attachment 1 HEDC Packet Page Number 16 of 48 5 From left to right: Mayor Marylee Abrams, Joy Tkachuck (HEDC), Jeff Thomson (City), Tieng Vang (Owner of La Delicious Bread), Kim O’Brien (Rice & Larpenteur Alliance), and Yao Yaj (SPAC). Photo credit by Kim O’Brien taken on Oct 16, 2020. BUSINESS RETENTION, EXPANSION AND ATTRACTION PROGRAM BACKGROUND The St. Paul Area Chamber appreciates the opportunity to partner with the City of Maplewood on Business Retention, Expansion and Attraction work for another year. The scope of this work includes the report detailing findings from the visits as well as recommendations for next steps. Importance of Business Retention, Expansion and Attraction (BRE&A) Retaining and facilitating the expansion of existing businesses is a vital component of any city’s strategic plan for economic development. Studies have shown that as much as 80 percent of new jobs created are by existing businesses rather than by new businesses attracted to a community. In addition, Maplewood’s unique situation of being almost 100% developed adds challenges for increased land use of existing build outs. With the increasing scarcity of resources at the local level, focusing on the growth of existing businesses can be more efficient than enticing a new business to move into a community with public financing commitments or other public subsidies. However, redevelopment opportunities can be an opportunity to attract additional businesses to an area, especially if they are related to supply chain or somehow connected or complimentary to existing businesses. F1, Attachment 1 HEDC Packet Page Number 17 of 48 6 Program Objectives Business Retention, Expansion and Attraction programs set out to achieve a multitude of goals. Some of the goals identified by the City of Maplewood include: • Demonstrate to businesses that the community appreciates their presence • Help existing businesses solve immediate problems • Increase businesses’ ability to compete in regional, national, and global markets • Establish a strategic plan for economic development • Build community capacity to sustain growth and development over the long term Program Organization and Leadership Executing a Business Retention, Expansion and Attraction program in a community takes a great deal of organization and leadership. Yao Yaj from the Chamber took the lead role in identifying businesses to be visited; coordinating schedules between the businesses and with the Mayor, City Councilmembers, and Housing and Economic Development Commission (HEDC) members; and executing BRE&A visits. Kim O’Brien, Vice President of Strategic Initiatives, also took lead role in identifying businesses, and coordinating while Yao was on maternity leave. Jeff Thomson, Community Development Director, was the City lead on the Maplewood BRE&A program and was excellent to work with. Program Participants The St. Paul Area Chamber would like to offer thanks to Mayor Abrams, the members of the City Council, members of the Housing and Economic Development Commission, City Staff, and other partners for their participation in the project. Although not everyone attended one or more visits, their support is critical for a project of this kind. City Council: Mayor Marylee Abrams* Councilmember Bill Knutson Councilmember Sylvia Neblett Councilmember Bryan Smith Councilmember Kathleen Juenemann Housing and Economic Development Commission: Sarah Burdash Dennis Dupee* Joy Tkachuck* Mark Jenkins Darryl Henchen Dennis Unger Bao Vang* City Staff/Partners: Melinda Coleman* Jeff Thomson* Michael Martin F1, Attachment 1 HEDC Packet Page Number 18 of 48 7 SPACC Staff: Yao Yaj* Kim O’Brien* *Participated in visits in 2020-2021 (to date) Hue Vang (Owner of Maplewo od Collision Center) photo credit by Kim O’Brien. Business Selection Participants in the BRE&A program visited 16 businesses. Recognizing that there is not the capacity to visit every business in the community, a strategy was developed to prioritize visits with the intent of gathering data and building relationships across a diverse cross section of Maplewood businesses. Using data from the Minnesota Secretary of State’s office and Minnesota Department of Employment and Economic Development (DEED) we identified approximately 800 companies in the City of Maplewood. We narrowed down the list to identify prominent industry clusters within the city, as well as “key industries” as defined by Greater MSP(Health Care and Social Assistance; Manufacturing; Professional, Scientific, Technical Services; Hospitality; and Retail). Our most successful visits were made possible by existing relationships made through the Chamber and the Rice & Larpenteur Alliance. We prioritized several visits with businesses in the Rice & Larpenteur area because the City of Maplewood is strategically focused on this boarder community that is geographically disconnected from the heart of the City, yet important to diverse business and community stakeholders. Medical or health-related practitioners and businesses are extremely important industries to Maplewood’s economy. Medical and Social Assistance is the number one key growth industry in the F1, Attachment 1 HEDC Packet Page Number 19 of 48 8 state, so Maplewood is in a good position to capitalize on the foundation that already exists. As part of this cluster we visited two Chiropractors and the Hospital. The Amazon effect and other delivery services are changing every part of the retail sector and especially malls, so we visited The Maplewood Mall, a Thrift Store, and a small immigrant owned Grocery Store. Restaurants have a big presence in Maplewood so we visited two Full-Service Restaurant and a start-up Bakery Cafe. Trades also have a big presence in the city, we visited an Auto Body Shop and HVAC business. We also thought it was important to get information from a few small businesses so we visited with a Staffing agency. Minnesota is known for having the most nonprofits, we visited a Nonprofit representing realtors. Businesses Visited The BRE&A Program identified over 40 businesses that met the selection criteria for a visit and 16 visits were completed as follows: • 3M Corporate* • Apollo Heating & Air • Asian Fusion Kitchen • Capitol Health & Injury • Cub Food West • Goodwill • Independent School District 622* • Independent School District 623* • La Delicious Bread • Maplewood Collision Center • Maplewood Mall* • McCarron Lake Chiropractic • McCarron’s Pub • Restaffing LLC • SPAAR • St. John’s Hospital* *We recognized the importance of “Legacy” businesses that have a large enough impact to the City that they should be visited on a yearly basis, regardless of how they fit into the mix with other choices. Key Findings VISIT ANALYSIS OVERALL • The businesses visited have an overall favorable relationship with the City. The start-up companies had very good experiences when applying for permits and interactions with the F1, Attachment 1 HEDC Packet Page Number 20 of 48 9 Police department. • Businesses also do not heavily participate in City sponsored events and are not subscribed to the newsletters. • Public safety has met an increase of homelessness, mental health issues, drug addictions, and gun violence making businesses worried for their safety and for their customers. • Illegal waste dumping continues to be an issue for businesses who have large waste containers. They often find large appliances or furniture that are not landfill friendly in their containers and must pay the fee to dump it correctly. • Workforce shortages was a primary challenge of many businesses we visited. This was an existing challenge that the pandemic exacerbated significantly. COVID-19 Impact • This was a tough year for businesses worldwide, especially for hospitality, medical centers, retail, schools, and small businesses. It was reflected in businesses located in Maplewood, known for their mall, hospital, and restaurants. The shutdown was extremely detrimental to retail stores as well. • Many employers struggled with workforce challenges. With high levels of stress and often time little revenue, they had to come up with incentives to hire workers and still pay for former employee’s unemployment insurance. • All of the businesses we met with were negatively impacted by COVID-19 either by workforce challenges, illnesses, misinformation, economic shutdown, or related issues. • Fortunately, most businesses were negatively impacted by COVID-19 for period of time and not the entire year. After shutdowns were lifted and socially distanced laws implemented, businesses were able to recover. • Social distance learning was challenging for educators and students. Many paraprofessionals and staff onsite had to be let go. Public schools continue to suffer from social distance learning and worry about the future fundings and impacts of COVID-19. Civil Unrest • The mall was appreciative for the city’s police force for their presence and surveillance during the civil unrest. • Fortunately, none of the businesses we visited were directly impacted by the civil unrest. COMMUNICATIONS AND OUTREACH • Participants would like opportunities to market their businesses through the City with more partnership opportunities. • Newsletter is a good resource but not everyone has heard or received them. Additional follow up recommended. F1, Attachment 1 HEDC Packet Page Number 21 of 48 10 • Some of the participants attend events like the Community Breakfast or Business Council, but not on a regular basis. Most would like to attend more but don’t have enough free time to be involved in community and business events. • Businesses were grateful for the City to host mask giveaways during the pandemic. POLICE AND FIRE • The Maplewood Police and Fire Departments are well regarded with their response times and follow ups. There have been cases of break-ins and theft, the number of cases remain minimal but still warranted a desire for increased patrol in some areas. WORKFORCE • Businesses and organizations have identified the economic imperative of hiring and retaining a workforce that looks like customers and the people they serve, especially near the Maplewood- Roseville-Saint Paul border. Deliberate outreach and intentional recruiting is helping, but still a long way to go. • The availability of qualified candidates is a problem area. Participants noted that finding skilled labor is difficult when the company is smaller and filling unskilled labor is just as difficult. Partnerships with local high schools, community colleges and trade schools, as well as internal training and mentoring are strategies being used to fill the gaps. • In addition to industry-specific skills, soft skills and responsibility were mentioned. Some businesses reported applicants who didn’t even show up to scheduled interviews. “Poor work ethic” was mentioned by multiple employers, especially those who hire for traditionally entry- level, youth, or lower-wage positions. • In order to fill positions some are having to change employment criteria (no longer doing drug tests, more flexible schedules, reduced educational requirements). Some companies are offering unique opportunities for career change option and on-the-job training. GROWTH & BUSINESS CLIMATE • Increasing diversity and new populations mean an increased need for workers who are multi- lingual and have additional cultural competencies. • Tariffs and national political instabilities are a factor for manufacturers and equipment providers. However, this has been beneficial to one company as US companies are considering cost-benefit of working with companies locally or overseas. • Local (municipal, county and state) government relationships are nonexistent (beyond public safety and inspections) or could be improved in most cases. • Healthcare companies are in dire need to changes to Medicare reimbursements. Most cannot survive far into the future without adequate reimbursements, especially companies that work with lower income communities. F1, Attachment 1 HEDC Packet Page Number 22 of 48 11 • Most companies are satisfied with how Maplewood operates and is more interested in expanding or improving current facilities such as 3M and St. John’s Hospital. Both companies are looking to add more jobs and continue looking into growing their locations. • ISD 622 and ISD 623 serves many diverse students, many of whom are immigrant refugees and from low income families. This makes the two schools districts serving some of the highest percentage of diverse students in the suburbs. LOCATION/TRANSIT • Many businesses enjoy their location in Maplewood for its proximity to highway infrastructure and easy access to the greater Twin Cities markets. They are not concerned with high traffic. • The Rush Line would bisect one company’s properties, but they were not heavily engaged in the planning process. Some were not fans of the Rush Line, but major employers and Legacy companies are generally in favor of the Rush Line. • Most of the businesses and organizations we visited had very few employees and customers who use public transportation but some businesses say that public transportation is critical to their success. Companies near the Maplewood-Roseville-Saint Paul area are generally in favor of public transportation and are critical to their success. We would recommend that city officials who are involved in the planning process engage in proactive communication with these businesses to keep them informed. F1, Attachment 1 HEDC Packet Page Number 23 of 48 12 Survey Analysis *See Appendix A for full survey data • Two of the businesses we met were not locally owned. One was a national non-profit and the other was national grocery. • Generally, revenue seems to be stabilizing or increasing for many companies. • The companies surveyed range in size from less than 50 employees to over 10,000, with a couple companies being best described as start-up. • A significant portion of survey respondents’ employee numbers are increasing due to the recent furlough. Many businesses saw a decrease of employees due to COVID this past year. • Majority of the companies are citing the lack of available workers for their shortages while a small minority are well staffed and do not have sufficient demands. • Most companies’ primary markets are local but are growing into the larger Minnesota community and beyond. • Of the businesses that are planning to invest in facilities in the next two to 3 years, about half are planning to renovate or expand their current facility and the other half are planning to open additional facilities in other Minnesota communities. • The K-12 and Higher Education providers continues to be perceived positively by the business community and are in partnership with many businesses. • There is opportunity for improved access to public transit, but businesses would like more intentional engagement for public processes. F1, Attachment 1 HEDC Packet Page Number 24 of 48 13 RECOMMENDATIONS Visit and Survey Generated Recommendations The visits and surveys yielded many actionable findings. It is recommended that the City concentrate on a select few items that proved to be the most prominent themes identified through the BRE&A Program. Recommendation 1 (continued from 2017, 2018, and 2019) Challenges related to accessing skilled workers was a theme during visits and is consistent with regional trends. While the quality of education in the community at the K-12 and Post-Secondary level is generally perceived as being favorable, there is a disconnect between the types of opportunities that exist in the community and the academic and training resources in the immediate area. It is recommended that the City continue building relationships with one or several community and technical colleges (i.e. Century College, Saint Paul College, etc.) in an effort to bridge the gap of skilled workers with local companies. Setting up a line of communication between businesses and schools can be valuable for everyone involved, and help the city stay informed about trends in education and workforce needs. Recommendation 2 (continued from 2017, 2018, and 2019) The need for increased transit was a strong theme throughout the visits. It is recommended that city staff and elected officials and/or committees and commissions continue engaging in efforts to advance transit in Maplewood. The Rush Line will be vital for the City of Maplewood and long term economic vitality. This will also help with issues of employee attraction/retention and parking brought up in many of the visits. F1, Attachment 1 HEDC Packet Page Number 25 of 48 14 Recommendation 3 (continued from 2018 and 2019) Companies in the City of Maplewood are growing, and the time available for owners and operators to seek out information is difficult to find. It is recommended that the City’s communications department explore proactive ways to connect with businesses and “push” relevant information in ways that would be relevant and helpful to them. This could be as simple as a specific opt-in business email list. Recommendation 4 (new for 2020) The Rice & Larpenteur Alliance has proven to be beneficial in revitalizing the neighborhood and business community, however, businesses along Rice & Larpenteur area have expressed that they would like to see more participation and outreach from the City. Due to the fact they are along the edge of the city and bordered with two other cities, they feel neglected and not as engaged with the City of Maplewood. It is recommended to continue engagement with businesses on the edge and make them feel included as a Maplewood business. Recommendation 5 (new for 2020) The city continues to grow and draw economic opportunities to the region large and small. Businesses in Maplewood like the convenient location and welcoming commercial opportunities. It is recommended to continue accessible economic resources and updates on the city website and social media. Jeff Thomson (City), Apollo Heating and Cooling Staff. Photo credit by Kim O’Brien. BRE&A RECOMMENDATIONS Intensive BRE&A Programs, like this one, are an important part of a Business Retention, Expansion and Attraction strategy for a community. The data collected during this program represents a snapshot of F1, Attachment 1 HEDC Packet Page Number 26 of 48 15 ongoing BRE&A, which are critical efforts to maintain up to date information and relationship building with the business community. Recommendation 1 (continued from 2017, 2018, and 2019) It is recommended that Maplewood continue its Business Retention, Expansion and Attraction efforts, identifying a targeted list of businesses to be visited throughout the year. For 2021 consider shifting focus to businesses that have had one touch point already – for instance, target companies who have pulled a permit within the last year. Maplewood should also consider reestablishing relationships with long time businesses to make sure their concerns are heard. Recommendation 2 (continued from 2017, 2018, and 2019) As part of the city’s ongoing Business Retention, Expansion and Attraction efforts, we recommend that the St. Paul Area Chamber and other groups be leveraged to supplement Business Retention, Expansion and Attraction visits. Chambers conduct BRE&A visits on a regular basis. The city should continue to work with these organizations to coordinate visits and ensure the appropriate people are involved in conducting the visits. Recommendation 3 (new for 2020) In addition to recommendation 2, we recommend that businesses along the edges of the city (such as Rise & Larpenteur) be prioritized for BRE&A visits on a regular basis. With the recent connections through the Rice & Larpenteur Alliance, many businesses expressed they would like to be more connected with the city. Recommendation 4 (new for 2020) Maplewood has become an ideal home for many businesses and residents. In recent years, the city has welcomed many diverse groups and immigrants from all over the world. Businesses are reflecting the demographics of the region and it is a positive note Maplewood has embraced their presence. It is recommended to include businesses from diverse communities in the annual BRE&A visits. CONTACT INFORMATION 401 North Robert Street, Suite 150 Saint Paul, MN 55101 651.223.5000 www.stpaulchamber.com Yao Yaj Manager of Strategic Initiatives (651) 265-2780 Yao@stpaulchamber.com F1, Attachment 1 HEDC Packet Page Number 27 of 48 16 APPENDIX A – BRE&A SURVEY RESULTS The survey in 2020 is the same survey used from 2019. We continued partnership with the Minnesota Chamber of Commerce’s Grow Minnesota survey. This will help to create a strong regional approach to BRE&A and establish more complete data for the entire state. Survey data from 2019 and 2020 was aggregated and is presented by data set to maintain anonymity of the companies that were visited. 1 10 3 2 0 2 4 6 8 10 12 14 No Yes# of CompaniesLocally Owned 2019 Locally Owned / Management Change Yes No 2 14 0 2 4 6 8 10 12 14 16 No Yes# of CompaniesLocally Owned 2020 Locally Owned / Management Change NO Expected Change for Next Year Expected Change for Next Year F1, Attachment 1 HEDC Packet Page Number 28 of 48 17 11 5 1 4 1 3 0 1 2 3 4 5 6 7 8 9 Been relatively stable Decreased Increased N/A# of CompaniesLast Year's Revenue 2019 Revenue Relatively Stable Increase Decrease 3 4 5 1 1 2 0 1 2 3 4 5 6 7 8 Decreased Increased N/A Relatively Stable# of CompaniesLast Year's Revenue 2020 Revenue N/A Relatively Stable Increase Decrease Expected Change for Next Year F1, Attachment 1 HEDC Packet Page Number 29 of 48 18 2 1 1 3 2 1 1 5 0 1 2 3 4 5 6 7 8 9 Decreased Increased Relatively Stable N/A# of CompaniesLast Year's Expense 2019 Expenses Relatively Stable Increase Decrease 1 5 1 6 1 2 0 1 2 3 4 5 6 7 Decreased Increased Relatively stable N/A# of CompaniesLast Year's Expense 2020 Expenses N/A Increased Relatively Stable Expected Change for Next Year F1, Attachment 1 HEDC Packet Page Number 30 of 48 19 1 3 2 1 7 1 1 0 2 4 6 8 10 12 Local Midwest (including MN) Minnesota United States# of CompaniesPrimary Market 2019 Primary Market United States Minnesota Midwest (including MN) Local International 1 11 3 1 0 2 4 6 8 10 12 Local MN International Midwest# of CompaniesPrimary Market 2020 Primary Market Midwest MN Local International Fastest Growing Market F1, Attachment 1 HEDC Packet Page Number 31 of 48 20 6 4 5 1 0 1 2 3 4 5 6 7 >50 50-100 100-500 500+# of CompaniesRange of Employees 2019 Employment Numbers 10 1 4 0 2 4 6 8 10 12 >50 100-500 500# of CompaniesRange of Employees 2020 Employment Numbers F1, Attachment 1 HEDC Packet Page Number 32 of 48 21 1 5 1 4 5 0 2 4 6 8 10 12 Decreased Increased Relatively stable# of CompaniesChange in Job Last Year 2019 Employment Changes Increase Be relatively stable 22 4 2 4 2 0 1 2 3 4 5 6 7 Decreased Increased Relatively Stable N/A# of CompaniesChange in Job Last Year 2020 Employment Changes Increased Decreased Be Relatively Stable Expected Change for Next Year F1, Attachment 1 HEDC Packet Page Number 33 of 48 22 2 1 4 8 1 0 1 2 3 4 5 6 7 8 9 10 Labor wage costs Lack of available workers Insufficient demand (i.e. dont need more employees right now)# of CompaniesWorkforce Barrier 2019 Biggest Barrier to Increasing Workforce Yes No 2 1 2 10 1 0 2 4 6 8 10 12 Insuffient demand ( i.e. don't need more employees right now) Lack of available workers N/A# of CompaniesWorkforce Barrier 2020 Biggest barrier to Increasing Workforce n/a Yes no Difficulty Finding Employees Difficulty Finding Employees F1, Attachment 1 HEDC Packet Page Number 34 of 48 23 1 1 1 2 2 2 1 2 1 2 1 0 2 4 6 8 10 12 Leased Owned# of CompaniesOwnership 2019 Facility Ownership & Type Sales Office Office Operation (non-HQ) Manufacturing Headquarters; Sales Office Headquarters; Distribution; Manufacturing; R&D; Sales Office Headquarters Distribution Branch Facility Type 1 1 5 2 3 2 1 1 0 2 4 6 8 10 12 Leased Owned# of CompaniesOwnership 2020 Type of Facility Retail Restaurant Office Opeation (Non-hq) Headquarters Branch F1, Attachment 1 HEDC Packet Page Number 35 of 48 24 5 2 2 7 0 1 2 3 4 5 6 7 8 9 10 No Yes# of CompaniesNew Investment 2019 New Investments & Type of Investment No new investment Renovate/Expand Current Facilities Invest in new facilities; Renovate/Expand Current Facilities Invest in new facilities 5 2 9 0 1 2 3 4 5 6 7 8 9 10 no Yes# of CompaniesNew Investment 2020 New Investments & Type of Investment None major equipment purchases Renovate/expand current facilities F1, Attachment 1 HEDC Packet Page Number 36 of 48 HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 20, 2022 REPORT TO: Housing and Economic Development Commission REPORT FROM: Jeff Thomson, Community Development Director PRESENTER: Jeff Thomson, Community Development Director AGENDA ITEM: Gladstone Update Action Requested: ☐ Motion  Discussion ☐ Public Hearing Form of Action: ☐ Resolution ☐ Ordinance ☐ Contract/Agreement ☐ Proclamation Policy Issue: Staff will provide an update on the status of redevelopment projects in the Gladstone neighborhood. Recommended Action: No action is requested at this time. 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 has been supporting development projects as part of its Gladstone Neighborhood Redevelopment Plan. The proposed projects are consistent with the city’s 2040 comprehensive plan policies related to land use and housing. Background At the June 28, 2021 meeting, the City Council voted to support three projects for applications to pursue funding via Housing Tax Credits from the Minnesota Housing Finance Agency. Two of those projects – 1310 Frost Avenue and 1136-1160 Frost Avenue are still in the running for receiving the credits. Minnesota Housing has eliminated the project at 1375 Frost Avenue/1900 Clarence Street. Following is a project update on the two projects still in the running for tax credits and an outline of staff’s strategy for moving forward with the properties at 1375 Frost Avenue/1900 Clarence Street. F2 HEDC Packet Page Number 37 of 48 1310 Frost Avenue JB Vang is working to construct 75 affordable housing units in a four-story building built at 1310 Frost Avenue. Of the 75 units, five would be designated for people with disabilities and eight units would be targeted for permanent supportive housing. This property is guided by the City’s 2040 Comprehensive Plan as Mixed Used Neighborhood High Density which encourages multi-family residential uses. This project is still being considered for the award of tax credits from the Minnesota Housing Finance Agency. 1136 and 1160 Frost Avenue Reuter Walton is working to construct 65 affordable housing units in a four-story building built at 1136 and 1160 Frost Avenue. The City owns the property at 1136 Frost and entered into a purchase agreement with Reuter Walton on June 28, 2021. Of the 65 units, 20 would be designated for people with disabilities and eight units would be targeted for permanent supportive housing. This property is guided by the City’s 2040 Comprehensive Plan as Mixed Used Neighborhood High Density which encourages multi-family residential uses. This project is still being considered for the award of tax credits from the Minnesota Housing Finance Agency. Reuter Walton has been working with city staff on a contingency plan in order to still move forward with a project at this site even without tax credits from the Minnesota Housing Finance Agency. 1375 Frost Avenue and 1900 Clarence Street MWF Properties’ application to construct 58 affordable housing units in a four-story building built at 1375 Frost Avenue has been eliminated for 2021 tax credits by the Minnesota Housing Finance Agency. The purchase agreement between the city and MWF Properties has been cancelled. MWF Properties has expressed a desire to city staff to execute another purchase agreement in order to make another application for tax credits from Minnesota Housing Finance Agency in 2022. City staff has also received interest in this site from another developer who would also intend to submit an application for tax credits from Minnesota Housing Finance Agency in 2022. Because there are multiple parties interested in this project site, staff is intending to release a Solicitation of Offers for the properties at 1375 Frost Avenue and 1900 Clarence Street. This is a similar process that was used when the City had multiple developers interested in the former fire station site at 2501 Londin Lane. The Solicitation of Offers is attached to this report and outlines the city’s expectations for development at this site and what is required for a submission in order to be considered for selection. Developers will be required to submit an outline of their proposed project, a letter of intent for purchasing the properties and a financial pro forma which will detail how the project would be funded. The Economic Development Authority discussed the Solicitation of Offers at its meeting on January 10, 2022 and agreed with the solicitation process. The city released the Solicitation of Offers on January 17, 2022. Offers are due on January 28, 2022 and the city council will review the offers and approve a Letter of Intent with the selected developer on February 14, 2022, with the goal of negotiating a final Purchase and Development Agreement by March 14, 2022. Attachments 1. Solicitation of Offers F2 HEDC Packet Page Number 38 of 48 City of Maplewood Community Development 1902 County Road B East Maplewood, MN 55109 Office 651-249-2300 www.maplewoodmn.gov SOLICATION OF OFFERS 1375 Frost Ave E and 1900 Clarence St N Maplewood, MN 55119 Description of the Site The City of Maplewood is currently soliciting offers to purchase two properties in the Gladstone neighborhood for redevelopment. Site A is located at 1375 Frost Ave E and is approximately 0.6 acres in size. The property is owned by the city and is improved with a building that is currently vacant. Site B is located at 1900 Clarence St N and is across the street from Site A. The property is owned by the city and is approximately 0.6 acres in size. Site B is improved with a parking lot that is adjacent to the Philippine Center of Minnesota at 1380 Frost Ave E. Site A is adjacent to property owned by the Philippine Center of Minnesota. As part of the sale, the city would facilitate a land swap between the developer and the Philippine Center of Minnesota of Site B and the property adjacent to Site A that is owned by the Philippine Center. The land swap would consolidate the two parcels on the north side of Frost Ave between Clarence Street and Ide Street into a single redevelopment site. The consolidated development site is 1.02 acres in size. The sites are located within the Frost Avenue station area for the Rush Line/Purple Line Bus Rapid Transit line. Land Use and Zoning The consolidated development site (Site A and the adjacent property owned by the Philippine Center) are guided in the city’s 2040 Comprehensive Plan as Mixed-Use – Neighborhood High Density. The Mixed-Use – Neighborhood High Density allows for residential densities between 25 and 50 units per net acre. The land use classification is for neighborhood serving (small scale buildings that serve a market at a neighborhood scale) commercial retail or service businesses, offices, and high-density housing. This district would lean residential, with at least 50 percent of development being residential in nature. Commercial and residential development may be combined vertically in the same building or horizontally on the same or adjacent sites. When uses are mixed within a building, retail, service, offices and civic uses should be focused on the ground floor, while housing should be focused on the upper floors. Parking should be in structures to maximize land development intensity. Park space should be small and intimate and may occur in the form of plazas. Higher intensities in Mixed-Use – Neighborhood High Density development are encouraged to support nearby transit service. The consolidated development site is currently zoned ‘Mixed Use’, which is consistent with the 2040 land use designation. F2, Attachment 1 HEDC Packet Page Number 39 of 48 City of Maplewood - Community Development Development Priorities The city seeks a project on the site that is consistent with the city’s comprehensive plan and Gladstone Neighborhood Redevelopment Plan. The city is also seeking a project that would leverage the Rush Line/Purple Line BRT project investments by supporting transit ridership. Given the size of the consolidated development site, the city is open to an exclusively high-density housing project on the site, which would be allowed up to 51 units of housing. The City will consider the use of Tax Increment Financing (TIF) for an affordable housing project. If an affordable housing project is proposed, it will need to (at minimum) meet the affordability requirements for creation of a housing TIF district. This means at least 20% of the units are affordable to those at or below 50% of the area median income or 40% of the units are affordable at or below 60% of the area median income. TIF housing districts have a limitation of no more than 20% nonresidential space as part of the project. Type of Disposition The city intends to enter into a purchase and development agreement for the sale of the property. Design Guidelines The project will require review by the city’s Community Design Review Board and approval by the City Council. The city expects a high-quality building and site design that is sensitive to the natural features of the site, provides premium building materials, and is in keeping with the character of the surrounding neighborhood. The city ordinances establish the following design standards: (1) The design and location of the proposed development and its relationship to neighboring, existing or proposed developments and traffic is such that it will not impair the desirability of investment or occupation in the neighborhood; it will not unreasonably interfere with the use and enjoyment of neighboring, existing or proposed developments; and it will not create traffic hazards or congestion. (2) The design and location of the proposed development is in keeping with the character of the surrounding neighborhood and is not detrimental to the harmonious, orderly and attractive development contemplated by this division and the city's comprehensive municipal plan. (3) The design and location of the proposed development would provide a desirable environment for its occupants, as well as for its neighbors, and it is aesthetically of good composition, materials, textures and colors. Submission Requirements Offers are due by Friday, January 28th at 4:30 p.m. and should be emailed to Jeff Thomson at jeff.thomson@maplewoodmn.gov. The offers must include the following information in the submittal: (1) Cover letter outlining the development team and proposed project for the site (2) Letter of Intent which includes, at a minimum: a. Purchase price b. Earnest money amount and terms c. Contingency period duration d. Contingency extension periods e. Closing date (3) Financial pro forma for the project which includes: a. Sources and uses of funds b. Revenue and income projections F2, Attachment 1 HEDC Packet Page Number 40 of 48 City of Maplewood - Community Development c. Operating costs d. Financing assumptions e. Specific amount of requested TIF (if any) (4) Portfolio of past projects from the development team with references for each project Evaluation Criteria The city will evaluate each offer based on the following ranked criteria: (1) Consistency of the project with the 2040 Comprehensive Plan, Gladstone Neighborhood Redevelopment Plan, and Rush Line/Purple Line BRT project. (2) Ability of the developer to perform as demonstrated by outcomes of similar projects, financial feasibility, capability of obtaining additional funding sources, quality of the proposal, and evidence of development team’s abilities (3) Purchase price for the property (4) Closing date (5) Providing affordable housing that meets the greatest level of affordability that is financially feasible (6) Proposed amount and length of Tax Increment Financing Upon review of any submitted offers, the city reserves the right to reject all proposals. Schedule January 17th: Solicitation of Offers issued by the city January 28th: Offers due by 4:30 p.m. February 14th: City Council review of offers and approval of Letter of Intent March 14th: City Council approval of Purchase and Development Agreement Attachments and Links 1. Map of Properties 2. Gladstone Neighborhood Redevelopment Plan 3. Rush Line Corridor F2, Attachment 1 HEDC Packet Page Number 41 of 48 SOLICATION OF OFFERS - 1375 Frost Ave E and 1900 Clarence St N City of Maplewood January 4, 2022 Legend !I 0 240 Feet Source: City of Maplewood, Ramsey County $ % $)URVW %&ODUHQFH F2, Attachment 1 HEDC Packet Page Number 42 of 48 HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 20, 2022 REPORT TO: Housing and Economic Development Commission REPORT FROM: Jeff Thomson, Community Development Director PRESENTER: Jeff Thomson, Community Development Director AGENDA ITEM: Single-Family Housing Rehabilitation Program Action Requested: ☐ Motion  Discussion ☐ Public Hearing Form of Action: ☐ Resolution ☐ Ordinance ☐ Contract/Agreement ☐ Proclamation Policy Issue: Staff will provide an update on the EDA and HEDC’s discussion about establishing a single-family rehabilitation program. Recommended Action: No action is requested at this time. 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 single-family housing program would support neighborhood investment, affordable housing, and home-ownership opportunities in Maplewood. Background The Maplewood City Council, Economic Development Authority, and Housing and Economic Development Commission completed a strategic plan for economic development in Maplewood in 2020. One of the strategies identified as a high priority is addressing the gaps in the city’s housing stock and making progress on the housing goals and policies identified in the city’s 2040 Comprehensive Plan. One of the housing programs that has been identified is a single-family home acquisition, rehabilitation, and resale program. The city council has discussed using part of its American Rescue Plan Act (ARPA) funding to support a single-family housing program and is interested in partnering with Ramsey County, and F3 HEDC Packet Page Number 43 of 48 its implementation of a new countywide HRA levy, to build a rehabilitation program to support the city’s housing goals. The program would be consistent with several goals and policies in the city’s 2040 Comprehensive Plan, including: • Pursue opportunities to upgrade, enhance, and maintain the existing housing stock as part of efforts to revitalize existing neighborhoods and to promote redevelopment in various areas of the city. • Partner with agencies and community organizations to implement aesthetic and quality of life improvements at distressed housing sites. • Advocate that housing in Maplewood will accommodate all racial and ethnic groups in the purchase, sale, rental, and location of housing in the city. • Promote housing development that respects the natural environment of Maplewood while striving to meet the need for a variety of housing types and costs. • Promote sustainable housing that is energy efficient, and utilizes green building and operation techniques. • Improve the availability of affordable housing for both homeowners and renters. University of Minnesota – Resilient Communities Project City staff submitted an application and has been accepted into the Resilient Communities Project (RCP) at the University of Minnesota. The Resilient Communities Project partners with local government agencies in Minnesota on locally defined projects that advance community sustainability, equity, or resilience. Research and technical assistance is provided by graduate and professional students and faculty at the University of Minnesota from a variety of departments and disciplines. The city received a grant from the Metropolitan Council to pay for half of the city’s cost for participating in the RCP program since the project will implement the city’s 2040 Comprehensive Plan. Our partnership with RCP will study a single-family rehabilitation program. Attached is the project brief that has been developed by RCP for matching the project with courses at the University. We have been matched with the Housing Policy course at the Humphrey School of Public Affairs for the Spring 2022 semester, which is being taught by Tony Damiano. Class Description This course will explore the institutional, political, and economic context for the making of housing policy in the United States. We will examine competing ideas about solving the nation's housing problems through public intervention in the market focusing on the shift from social welfare to neoliberal policy approaches. In so doing, we will evaluate federal and local public sector responses to housing problems in this country, the different approaches taken by successive federal administrations in the U.S., and regional approaches to affordable housing. Special emphasis will be given to recent initiatives to increase the residential mobility of subsidized housing residents and to deconcentrate poverty by dispersing subsidized housing throughout metropolitan regions, and to the foreclosure crisis. The class includes a community-based research project that will be completed by small teams of students. Student groups work with a real-world client to produce the work they request. Maplewood’s Single-Family Housing Rehabilitation Program will be one of the community-based F3 HEDC Packet Page Number 44 of 48 projects that a small team of students are able to pick. The project scoping and selection happens about three weeks into the semester and will be completed at the end of the course in May 2022. Ramsey County Discussions City staff has been regularly meeting with county staff to discuss and provide feedback on the county programs that will be offered or revised utilizing not only the new county HRA levy, but also the county’s ARPA allocation for housing, Community Development Block Grant (CDBG), and federal HOME funds. The county expects that 70% of the HRA levy funds will be allocated towards housing. The housing program areas include new and preservation of multi-family affordable housing units, but also include priorities for affordable homeownership and owner-occupied rehab and repair. The city has provided regular feedback that we would like to partner with the county and access their variety of funding sources to support the city’s single-family rehabilitation program. County staff has been receptive to the feedback and anticipates that the rollout of the program areas that align with the city’s program will be in mid-2022. Vacant Home List City staff is continuing to work on updating the list of vacant homes in Maplewood. There is no specific city, county, or state dataset to track this information. Therefore, the list has been developed by our code enforcement staff based on specific complaints and cases. Our new code enforcement staff will continue to add or remove houses from this list as they work through cases. Attachments 1. RCP Project Brief F3 HEDC Packet Page Number 45 of 48 Project Description The City of Maplewood’s strategic plan has identified addressing the gaps in the city’s housing stock and making progress on the housing goals and policies identified in the city’s 2040 Comprehensive Plan as a high priority. One of the potential housing programs that has been identified to help accomplish this is a single- family home acquisition, rehabilitation, and resale program. The City of Maplewood has 1,000 new housing units in various phases of development that could be constructed in the next three years. Of the 1,000 new housing units, up to 600 of them would be new affordable units at varying affordability levels; however all of the new affordable housing units under development are multi-family rental units. The proposed rehabilitation program would offer the potential for owner-occupied, single-family, affordable housing units, which would provide a greater diversity of affordable housing in Maplewood. Currently, the City of Maplewood has documented 43 single-family homes that are vacant and that have nuisance conditions, regular city code violations, and are a blight on the neighborhood. The proposed housing program would focus on the acquisition and rehabilitation of these properties and then the resale as owner-occupied housing. The city council will be dedicating part of its American Rescue Plan Act (ARPA) funding to support a single-family housing program and is interested in partnering with Ramsey County, and its implementation of a new county-wide HRA levy, to build a rehabilitation program to support the city’s housing goals. About the Partner Maplewood is a city within Ramsey County that stretches along the northern and eastern borders of Saint Paul. There are approximately 15,808 households, with a total population of 41,738 (2019). DEVELOPING A SINGLE-FAMILY HOUSING REHABILITATION PROGRAM RESILIENT COMMUNITIES PROJECT UNIVERSITY OF MINNESOTA • RESILIENT COMMUNITIES PROJECT RCP.UMN.EDU • RCP@UMN.EDU F3, Attachment 1 HEDC Packet Page Number 46 of 48 What are the models for similar single family housing rehabilitation programs in the Twin Cities, Minnesota, and throughout the United States? What are best practices and recommendations for program policies, guidelines, and requirements? What equity frameworks should guide this program? How can this program be developed in a way that responds to barriers that some people in our community experience in owning an affordable home in Maplewood? What are the options for financing the program long-term? Who are potential partners for this program? Key Issues, Questions, and Ideas to Explore 1. 2. 3. 4. 5. To develop the policies and program criteria so that the city can successfully implement a single- family rehabilitation program. How Student Work Will Be Used to Build Community Resilience Ramsey County Community organizations such as: Housing Justice Center, Habitat for Humanity, Center for Energy and Environment, Minnesota Home Ownership Center Potential Community Partners or Stakeholders Project Lead Jeff Thomson, Community Development Director City of Maplewood jeff.thomson@maplewoodmn.gov, 651.249.2310 UofM RCP Contact Sarah Tschida, Coordinator University of Minnesota tschi066@umn.edu, 612.625.6550 City of Maplewood Comprehensive Plan: Housing (Chapter 6) Who Owns the Twin Cities? (Freemark, Noble, Su June 2021) Existing Plans & Reports F3, Attachment 1 HEDC Packet Page Number 47 of 48 THIS PAGE IS INTENTIONALLY LEFT BLANK HEDC Packet Page Number 48 of 48