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. This meeting will be a hybrid of Zoom and in-person. The Mayor has signed a declaration allowing members of the council, staff, and the public to attend the meeting remotely via Zoom as has been done during the COVID-19 pandemic. The council chambers will have limited seating, with audience chairs being set up at least six feet apart. There will be an overflow area where the meeting can be watched in the Cloverleaf Farms Room, also with chairs set up at least six feet apart. Please note that all visitors to city hall are required to wear a face mask while inside the building. Public comments may be submitted prior to the meeting by sending an email to PublicComment@BlaineMN.gov or by calling 763-717-2782 no later than Noon on Monday, July 6. Public comment during the meeting will be taken both remotely via Zoom and in-person in the council chambers. Members of the public can join the Zoom webinar at, https://blainemn.zoom.us/j/99599968252. Monday, June 1, 2020 Due to the COVID-19 pandemic, city meetings will now be held as virtual meetings until further notice This meeting will take place immediately following the City Council meeting 1 Call to Order The meeting was called to order at 10:03PM by President Ryan followed by the Roll Call. Due to the COVID-19 pandemic this meeting was held virtually. 2 Roll Call Quorum Present. ALSO PRESENT: City Manager Michelle Wolfe; Community Development Director Erik Thorvig; Public Works Director Jon Haukaas; Police Chief/Safety Services Manager Brian Podany; Finance Director Joe Huss; Public Services City of Blaine Page 1 EDA Minutes June 1, 2020 Manager/Assistant City Manager Bob Therres; City Engineer Dan Schluender; City Planner Lori Johnson; Senior Engineering Technician Jason Sundeen; and City Clerk Catherine Sorensen. Present: 7 - President Ryan, Commissioner Swanson, Commissioner Jeppson, Commissioner Garvais, Commissioner Robertson, Commissioner Paul, and Commissioner Hovland 3 Minutes 3-1 APPROVAL OF MAY 4, 2020 EDA MINUTES Attachments: Unapproved Minutes Moved by Commissioner Jeppson, seconded by Commissioner Hovland, that the Minutes of May 4, 2020, be approved. A roll call vote was taken. Motion adopted unanimously. Aye 7 - President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais Commissioner Robertson Commissioner Paul Commissioner Hovland 4 New Business 4-1 DEFERMENT POLICY FOR EDA HOME LOANS Attachments: Deferment Policy Community Development Director Thorvig stated the City of Blaine operates a Home Improvement Loan Program in partnership with the Center for Energy and the Environment (CEE), who administers the program, and the Community Reinvestment Fund (CRF), who services the loans. There are currently 53 outstanding loans. The program was funded in 1996 through the sale of general obligation bonds. The revolving loan fund is separate from any operating budget and has substantial fund balances at this time to support initiating home improvement loans. It was noted CRF received a request from a homeowner who has experienced hardship due to the COVID-19 pandemic to have a loan temporarily deferred. Many banks are offering deferments at this time to borrowers experiencing hardship and the City of Fridley, which operates a nearly identical home improvement loan program with CEE, recently approved a deferment policy to allow relief to borrowers. Staff is recommending that the EDA establish a loan deferment policy to provide relief to homeowners. By deferring payments on the EDA loan, borrowers will be more able to pay for other expenses and the EDA will eventually recover the full loan amount. Loans could be deferred up to 6 months, with a 6-month extension of the maturity date of the loan. During the deferment period interest would not accrue. Borrowers would need to demonstrate the need for relief. Applicants may be required to provide supporting documentation to substantiate their hardship claim. Any deferment would be approved City of Blaine Page 2 EDA Minutes June 1, 2020 administratively. Any denied claims can be appealed to the EDA. Moved by Mayor Ryan, seconded by Commissioner Robertson, that Resolution No. 20-08, “Deferment Policy for EDA Home Loans,” be approved. A roll call vote was taken. Motion adopted unanimously. Aye 7 - President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais Commissioner Robertson Commissioner Paul Commissioner Hovland 4-2 APPROVE LETTER OF INTENT FOR EDA-OWNED SITE ON PHEASANT RIDGE DRIVE Attachments: Location Map Concept Plan LOI Coon Rapids Building Mr. Thorvig stated the Pheasant Ridge Business Park is located on Pheasant Ridge Drive, west of Lexington Avenue. The Blaine EDA has owned land in the business park since 1986. The EDA has sold portions of land to various businesses and still owns a 21.96-acre site. In 2016, staff had a wetland delineation completed to determine whether the site could be developed. The delineation identified enough upland to accommodate an approximately 70,000 sf. building. This would require approximately 2.05 acres of wetland fill and an overall development area of 6.56 acres. The property is currently zoned Planned Office District (POD). It was noted the site has been for sale for approximately three years. A developer has shown interest in the site to construct a multi-tenant spec industrial building. The developer has asked the Blaine EDA to enter into a Letter of Intent (LOI) to secure the site for up to 90 days to complete necessary due diligence and determine whether to proceed with a purchase agreement. The site has significant development costs in order to make the site shovel ready for development due to soil corrections, fill, and wetland mitigation. Based on previous investigation, these costs exceed $1,000,000. If the site was shovel-ready, a market rate price for a 6.56-acre industrial site would be approximately $1.1-$1.2 million. Because of the significant development costs, the sale price of the land would be less than $100,000. The LOI identifies a sale price of $45,000. Mayor Ryan questioned how much the City has invested into this site. Mr. Thorvig reported the City purchased the site in 1985 and has sold portions off already. It was noted the City had made its cost back on this land. Moved by Commissioner Garvais, seconded by Commissioner Hovland, that Resolution No. 20-09, “Approve Letter of Intent for EDA-Owned Site on Pheasant Ridge Drive,” be approved. A roll call vote was taken. Motion adopted unanimously. City of Blaine Page 3 EDA Minutes June 1, 2020 Aye 7 - President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais Commissioner Robertson Commissioner Paul Commissioner Hovland 5 Other Business None. 6 Adjournment Moved by Commissioner Robertson, seconded by Commissioner Jeppson, to adjourn the meeting at 10:07PM. A roll call vote was taken. Motion adopted unanimously. Aye 7 - President Ryan Commissioner Swanson Commissioner Jeppson Commissioner Garvais Commissioner Robertson Commissioner Paul Commissioner Hovland City of Blaine Page 4