EDA

Blaine City Hall City of Blaine 10801 Town Sq Dr NE Blaine MN 55449 Anoka County, Minnesota Minutes EDA The purpose of the Blaine Economic Development Authority is to increase the City’s commercial/industrial tax base, provide employment opportunities, undertake redevelopment to enhance and maintain neighborhood economic stability, and address special needs, such as senior housing. As authorized under Minnesota State statutes, the Blaine City Council also serves as the Blaine Economic Development Authority. Thursday, September 6, 2018 7:15 PM Council Chambers 1 Call to Order The meeting was called to order at 7:21 p.m. by President Ryan followed by the Roll Call. 2 Roll Call Quorum Present. ALSO PRESENT: City Manager Clark Arneson; Planning and Community Development Director Bryan Schafer; Public Works Director Jon Haukaas; Police Chief/Safety Services Manager Brian Podany; Finance Director Joe Huss; Economic Development Coordinator Erik Thorvig; Public Services Manager/Assistant City Manager Bob Therres; City Engineer Dan Schluender; Senior Engineering Technician Jason Sundeen; and City Clerk Catherine Sorensen. Present: 5 - Commissioner Hovland, President Ryan, Commissioner Swanson, Commissioner Jeppson, and Commissioner Garvais Absent: 2 - Commissioner Clark, and Commissioner King 3 Minutes 3-1 AUGUST 16 EDA MINUTES Attachments: August 16 EDA Minutes Moved by Commissioner Swanson, seconded by Commissioner Hovland, that the Minutes of August 16, 2018, be approved. Motion adopted 3-0-2 (Commissioner Garvais abstained and Commissioner Jeppson was absent for the vote). Aye 3 - Commissioner Hovland President Ryan Commissioner Swanson Abstain 2 - Commissioner Jeppson Commissioner Garvais City of Blaine Page 1 EDA Minutes September 6, 2018 4 New Business 4-1 APPROVING $44,143 EXPENDITURE FROM THE BLAINE EDA TO BLAINE LOCK AND SAFE FOR FIRE SUPPRESSION INSTALLATION Economic Development Coordinator Thorvig stated Blaine Lock and Safe purchased the building at 10136 Sunset Ave in December, 2017. They purchased the building to relocate their business from their current location at 121st Ave. and Highway 65. The owners are remodeling the building which requires fire suppression. Due to lack of equity in the building because of low value, the business is having difficulty securing the necessary bank financing to complete both the building remodel and fire suppression. Staff proposed the option of financing the fire suppression through a combination of the fire suppression grant program and a special assessment. It was noted the total project cost to add the fire suppression system, based on bids obtained by the applicant is $69,143. The fire suppression grant program would pay up to $25,000 with the remaining $44,143 financed through a special assessment. The special assessment has a 10-year term at 4.5% interest. The initial fire suppression cost would be paid from the EDA general fund, with the fund being paid back the assessed amount over the 10-year period with interest. Because the expenditure is over $20,000, EDA approval is required. President Ryan thanked staff for working with Blaine Lock and Safe on this matter. Moved by Commissioner Swanson, seconded by Commissioner Hovland, that Resolution No. 18-16, “Approving $44,143 Expenditure from the Blaine EDA to Blaine Lock and Safe for Fire Suppression Installation,” be approved. Motion adopted 4-0-1 (Commissioner Jeppson absent for vote). Aye 4 - Commissioner Hovland President Ryan Commissioner Swanson Commissioner Garvais Abstain 1 - Commissioner Jeppson 4-2 APPROVAL OF LEASE WITH SPECIALTY WELDING, INC AT 1409 105TH AVENUE NE Attachments: Map Lease Agreement Economic Development Coordinator Thorvig stated on August 16, 2018, the EDA approved the purchase of 1409 105th Avenue. Closing occurred on August 29th, 2018. The building has an existing tenant, Specialty Welding, Inc. The business does small specialty welding jobs and boat skeg and propeller repair. The business has indicated they would like to continue to lease the building. Staff met with the business owner and inspected the property and is comfortable entering into a year City of Blaine Page 2 EDA Minutes September 6, 2018 lease with the business. The general terms of the lease were reviewed with the EDA and staff recommended approval. Moved by President Ryan, seconded by Commissioner Hovland, that Resolution No. 18-17, “Approval of Lease with Specialty Welding, Inc. at 1409 105th Avenue NE,” be approved. Motion adopted unanimously. Aye 5 - Commissioner Hovland President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais 4-3 MEMORANDUM OF UNDERSTANDING BETWEEN ANOKA COUNTY, CONNEXUS ENERGY, METRONORTH CHAMBER OF COMMERCE AND PARTICIPATING MUNICIPALITIES OF ANOKA COUNTY Attachments: Economic Development MOU Exh. A to Economic Development MOU Economic Development Coordinator Thorvig stated over the past two years a collaborative effort between Anoka County, Connexus Energy, Metro North Chamber, and Anoka County cities has occurred to encourage economic development in Anoka County. In December 2017 a study was completed by Ady Advantage for a market research analysis and evaluation of business opportunities, targets, and strategies for economic development within Anoka County. Since the completion of the study, several major tasks have been completed including hiring a dedicated economic development staff person by Anoka County, creating a brand and logo for Anoka County economic development, a webpage, and organization of three sub-committees to carry-out various tasks outlined in the study. The purpose of the memorandum of understanding (MOU) is to set a framework for involved organizations to further the goals of the economic development collaboration by: (a) outlining general objectives, (b) defining mutual responsibilities, and (c) setting goals, timelines, communication, and other details necessary to achieve the desired outcomes. The proposed MOU is effective for a period of five (5) years. Staff estimated the City’s cost for this economic development program to be $3,500. Moved by President Ryan, seconded by Commissioner Hovland, that Resolution No. 18-18, “Memorandum of Understanding between Anoka County, Connexus Energy, MetroNorth Chamber of Commerce and Participating Municipalities of Anoka County,” be approved. Motion adopted unanimously. Aye 5 - Commissioner Hovland President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais 5 Other Business City of Blaine Page 3 EDA Minutes September 6, 2018 None. None. 6 Adjournment Moved by Commissioner Hovland, seconded by President Ryan, to adjourn the meeting at 7:31 p.m. Motion adopted unanimously. Aye 5 - Commissioner Hovland President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais City of Blaine Page 4