Forward New Richmond Committee

Forward New Richmond Committee Meeting Agenda Wednesday, September 21, 2022 at 12:00 PM Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. ADOPTION OF AGENDA 4. CONSENT AGENDA a. Minutes from August 17, 2022 2-3 Forward New Richmond Committee - 17 Aug 2022 - Minutes b. Minutes from August 24, 2022 4-5 Forward New Richmond Committee - 24 Aug 2022 - Minutes c. Community Development Updates September 2022 6-7 Community Development Updates FNR September 2022 5. NEW BUSINESS a. Industrial Land Sale Policy - Updates 8 - 13 Industrial Land Sale Policy - 2022 b. Business & Technical Park Land Sale Policy - Updates 14 - 21 Business & Technical Park Land Sale Policy - 2022 c. City of New Richmond Strategic Plan 22 Memo: Strategic Plan 6. CHAMBER OF COMMERCE UPDATES 7. ST. CROIX EDC UPDATES 8. COMMUNICATION AND MISCELLANEOUS 9. ADJOURNMENT  Forward New Richmond Committee Meeting Minutes Wednesday, August 17, 2022 at 12:00 PM Council Chambers The Forward New Richmond Committee was called to order on Wednesday, August 17, 2022, at 12:00 PM, in the Council Chambers, with the following members present: PRESENT: Mike Montello, Rob Kreibich, Cathy Longtin, Karl Skoglund, Summer Seidenkranz, and Ryan Shervey ABSENT: Susan Lockwood and Heather McAbee OTHERS Pete Vrieze, Noah Wiedenfeld, Beth Thompson, Katrina Berg, Jamie Larson PRESENT: CALL TO ORDER ROLL CALL ADOPTION OF AGENDA Summer Seidenkranz made a motion to adopt the Agenda as presented. Karl Skoglund seconded the motion. Carried unanimously. CONSENT AGENDA Mike Montello made a motion to approve the consent Agenda with the addition of the approval of the April 2022 revised minutes. Rob Kreibich seconded the motion. Carried unanimously. Mike Montello made a motion to enter into Closed Session and to allow Alderman Vrieze to stay for Closed Session. Summer Seidenkranz seconded the motion. Carried unanimously. CLOSED SESSION PER STATE STATUE 19.85 (1)(E) Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. OPEN SESSION Karl Skoglund made a motion to return to Open Session. Rob Kreibich seconded the motion. Carried unanimously. Forward New Richmond Committee Meeting August 17, 2022 Mike Montello made a motion to proceed as discussed in Closed Session. Cathy Longtin seconded the motion. Carried unanimously. CHAMBER OF COMMERCE UPDATES Rob Kreibich provided an updated regarding Fun Fest. The carnival, Christman Amusement, had the most successful year in over 66 years and the food booths were extremely profitable. The Chamber is preparing for the upcoming "Welcome Back Educators" breakfast where they will serve over 500 district employees. This is the first time in three years that they will be serving in person due to Covid restrictions. COMMUNICATIONS AND MISCELLANEOUS Mike Montello shared that there has been discussion about the need for future industrial development in the City. Beth reported that City Council along with City Staff will be working on strategic planning. Once that is complete, Forward New Richmond could focus on Missions, Visions, and Goals including the future of industrial land development in the City. ADJOURNMENT Ryan Shervey made a motion to adjourn the meeting. Mike Montello seconded the motion. Carried unanimously. Forward New Richmond Committee Meeting August 17, 2022  Forward New Richmond Committee Meeting Minutes Wednesday, August 24, 2022 at 12:00 PM Council Chambers The Forward New Richmond Committee was called to order on Wednesday, August 24, 2022, at 12:00 PM, in the Council Chambers, with the following members present: PRESENT: Mike Montello, Rob Kreibich, Cathy Longtin, Summer Seidenkranz, Heather McAbee, and Ryan Shervey ABSENT: Karl Skoglund, Susan Lockwood OTHERS Mayor Jim Zajkowski, Pete Vrieze, Beth Thompson, Katrina Berg, Jamie PRESENT: Larson CALL TO ORDER ROLL CALL ADOPTION OF AGENDA Summer Seidenkranz made a motion to adopt the Agenda as presented. Mike Montello seconded the motion. Carried unanimously. CONSENT AGENDA Mike Montello made a motion to approve the consent Agenda. Heather McAbee seconded the motion. Carried unanimously. Mike Montello made a motion to ender into Closed Session and allow Alderman Vrieze and Mayor Zajowski to stay for Closed Session. Cathy Longtin seconded the motion. Carried unanimously. CLOSED SESSION PER STATE STATUE 19.85 (1)(E) Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. OPEN SESSION Mike Montello made a motion to return to Open Session. Summer Seidenkranz seconded the motion. Carried unanimously. Forward New Richmond Committee Meeting August 24, 2022 Mike Montello made a motion to recommend to City Council to further pursue information as discussed in Closed Session. Cathy Longtin seconded the motion. Carried unanimously. COMMUNICATIONS AND MISCELLANEOUS ADJOURNMENT Mike Montello made a motion to adjourn the meeting. Ryan Shervey seconded the motion. Carried unanimously. Forward New Richmond Committee Meeting August 24, 2022  MEMO Prepared for: FNR Members Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 21 Sep 2022 Subject: Community Development Updates September 2022 BACKGROUND INFORMATION: Building / Zoning Updates – August 31, 2022: Number of Building Permits – 263 Number of New Dwelling Units – 174 Number of Inspections - 1,295 Residential Construction Value - $18,139,206 Commercial Construction Value – $24,458,083 Building Permit Fees – $260,934 The total construction value through August 31, 2022 equals $42,597,289. Impact Fee Collection To Date: During the building permit process, our office is charged with the collection of Impact Fees. Impact Fees collected through August 31, 2022 are as follows: SAC Fees $179,952 Water Facilities Fees $179,952 Transportation Fees $203,500 Municipal Fees $135,790 Park Fees $ 89,189 This week I accompanied our building inspector, Ben Campbell, on a number of inspections. We were able to inspect new homes on Rose Street and Naser Way. We also inspected three commercial projects. They were the new 8-plex Townhomes on West Fifth Street, the new Hudson Physicians building and a build-out of the AT & T Store between Jimmy Johns and Dunn Brothers. The job of a building inspector is crucial to our community in making sure that all builders in New Richmond are following State Building Code. I would like to thank Ben Campbell for including me on these inspections and for all he does for our community. Other projects in progress is Mill City Flats - they are working on the first two apartment buildings and have stated the third along with garage starts. Beebe Lofts is coming along, with the framing, brick work and elevator shaft in place. Deerfield 24 unit senior living building is on the fast tract, when driving around take a look at the job site. The Starbucks, T-Mobile and Shopko Optical has site work and footing and foundations completed. Economic Development: Our department has received a number of calls regarding land in our Business & Technical Park. City staff is responding quickly to these calls and requests. If any are in a form to move forward, we would bring these to the FNR committee at it's next meeting. Page 2 of 2  MEMO Prepared for: Forward New Richmond Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 21 Sep 2022 Subject: Industrial Land Sale Policy - Updates BACKGROUND INFORMATION: Our Industrial Land Sale Policy was previously approved in early 2020 with the caveat that City staff and FNR would review the document every two years, make appropriate changes/adjustments. City staff is not recommending any changes to the Industrial Land Sale Policy. RECOMMENDATION: City staff is recommending approval of the Industrial Land Sale Policy as presented. ATTACHMENTS: Industrial Land Policy 2022 CITY OF NEW RICHMOND: INDUSTRIAL LAND POLICY BACKGROUND: The Forward New Richmond Committee (FNR) contracted with Cedar Corporation to complete a Regional Industrial Land Demand Report. The findings and recommendations from that report are as follows:  With no large sites between the east side of the Twin Cities and the MN/WI border, New Richmond is in a prime location to attract firms looking to expand and service the Twin Cities market as well as West Central Wisconsin.  To stay competitive, the region needs to identify larger tracts of development- ready land (25+ acres) or look at combining existing adjacent parcels to increase their size.  New Richmond should consider purchasing larger parcels of land (25+ acres) for future development.  Any land contemplated for purchase should be strategically located to offer the best access to infrastructure such as streets and public and private utilities. The land should have limited impediments such as wetlands, flood plain, easements, etc.  The City of New Richmond could attempt to enter first right of refusals with landowners enabling the City to control land. However, the City would be subject to market driven land prices and could overpay for land. The City of New Richmond’s Comprehensive Plan identifies the following goals and policies in relationship to Industrial Development:  The community will work to expand the roster of tenants in the existing business parks in New Richmond and to identify areas for potential new business parks that will help to grow the jobs base in the community and take advantage of the new highway connections to the broader Twin Cities metro area and St. Croix River Valley.  Provide assistance for businesses looking to grow, start up, or relocate in New Richmond.  Target public assistance to businesses that choose to locate or expand in the downtown area, along North Knowles Avenue, STH 65, the STH 64 corridor or New Richmond Business Tech Parks.  Expand and develop new business parks.  Establish a tiered system of development standards (this would include industrial) o Group A – most visible – higher set of standards o Group B – less visible – lower set of design standards Rev. 9/15/2022 Page 2 of 6  o Group C- least visible – lowest set of design standards  Develop services, facilities, and infrastructure for start-ups and entrepreneurs DEFINITIONS: Industrial Land: Industrial Land is a zoning designation for areas used for industry. These businesses typically manufacture, process or otherwise generate products that are sold to commercial businesses later. Included in the definition of industrial land are factories and storage facilities as well as some mining and shipping operations. Z7 Special Use District from the City Zoning Ordinance: The purpose of the Z7 Special Use District is to create districts to support the ongoing use and expansion of the airport and industrial uses. Any future expansion of these uses shall require site plan approval and compliance with this ordinance. Z7-I – Industrial Parks. The purpose of the Z7-I District is to allow for continuation and expansion of industrial uses specific areas of the City where they will have less conflict with other functions. PURPOSE: This policy shall serve as a guiding document for FNR and City Council when developing a strategy or making decisions about industrial development with a goal of increasing the amount of industrial development and providing a strong economic base for the City of New Richmond. POLICY: 1. The Industrial Land Policy provides a policy framework to guide future decisions on the purchase, development, sale and use of industrial land, and determine when financial assistance shall be considered and/or provided. The City will find a balance between preserving and purchasing industrial land while still allowing commercial and residential developments. The City will allow Industrial uses as guided by the Comprehensive Plan and Zoning Ordinance, and will aggressively market industrial properties to perspective developers. 2. If financial assistance is provided, the City shall demonstrate a return on its investment based on one or more of the public benefit categories identified in this Policy. ROLES AND RESPONSIBILITIES: The City of New Richmond will inquire or take other proactive means to gauge a property owners’ interest in selling their property, and respond to active listings or requests to acquire land for industrial development. When a land acquisition opportunity arises, staff will present it to FNR, which will then make appropriate recommendations to the City Council. In addition, City Council and FNR members can make their own land acquisition recommendations. Unless otherwise directed, City staff will lead property negotiations. Rev. 9/15/2022 Page 3 of 6 PROCESS: When considering the following development opportunities, City staff and FNR shall consider each area of criteria before making recommendations to the City Council. 1. Private Development with City Assistance: Note: The City of New Richmond does not need to purchase land but has the ability to assist with the development of privately owned property. City assistance may include but is not limited to the infrastructure, utility improvements, the principal amount of a loan at rates below those commercially available to the recipient, reduction or deferral of fees, guarantee of payment under an obligation, applying for grants on behalf of the business, contribution of property, etc. A. The City may consider City assistance with private development when the developer has a gap in financing. B. The City may consider City assistance with private development by using the City’s active tax incremental districts (TIDs). Criteria: Because projects vary greatly in structure and public benefit derived, each project will be considered on its own merits. Consideration will be given to projects providing public benefits in two or more of the following categories: 1. The creation of new jobs/increase in total payroll over 3 years. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. FNR and the City Council will consider the impact jobs will have both short and long-term. 2. Redevelopment projects that result in increased assessed building value and stabilization of industrial districts through the elimination of blighted conditions. 3. Projects that enhance or increase assessed building value and economic diversity of the City by attracting a new industry not currently located within the community. 4. The Financial assistance provided does not give the expanded business or new business a competitive advantage against other local businesses. 5. Retention of existing jobs. In order for this category to be considered, it must be demonstrated to the satisfaction of the City that the loss of jobs is specific and measurable. Approach: Assist with land costs Promote Regional Business Fund for additional gap financing Grant Assistance Forgivable loans if applicable criteria are met State Incentives Rev. 9/15/2022 Page 4 of 6 2. Land Acquisition: A. The City may consider land acquisition when there are no contiguous tracts of industrial land greater than 50 acres within the City limits or a mile and a half boundary of the City limits. B. The City may consider land acquisition based on need or directed by FNR. C. The City may consider land acquisition when the City has a signed agreement with a developer to bring an industrial business to New Richmond. Criteria: Consistency with Comprehensive Plan Proximity to appropriate zoning district – Consistency with Zoning Ordinance Land characteristics (soil, grading, etc.) Proximity to utilities Cost and feasibility of utilities Approach: Map out areas of possible industrial development Appraisals Feasibility Study for utilities Development of a Purchase and Development Agreement Sources / Uses of funding Partner with land owner on a RFQ/RFP Process Exit Strategy If not developed within seven years, the City should consider any of the following exit strategies: Resale of the land Alternative land use RFQ process Partnership with a developer to develop the property 3. Right of First Refusal/Purchase of Development Rights: A. The City may consider right of first refusal/purchase of development rights when the owner does not want to immediately sell the land. B. The City may consider right of first refusal/purchase of development rights when the City is unable to purchase the land outright. Criteria: Consistency with Comprehensive Plan Proximity to appropriate zoning district – Consistency with Zoning Ordinance Land characteristics (soil, grading, etc.) Proximity to utilities Cost and feasibility of utilities Approach: Map out areas of possible industrial development Appraisals Feasibility Study for utilities Rev. 9/15/2022 Page 5 of 6  Development of a right of first refusal/purchase agreement When applicable consider sources / uses of funding Following the recommendations outlined in the August 2019 Regional Industrial Land Demand Report, once the land is identified and/or controlled, the City of New Richmond should:  Work to ensure public utilities are able to be extended to these parcels. It is not recommended that internal site utilities be installed until development is secured through a development agreement.  Work with public and private utilities to ensure that infrastructure to support large development is available and could be extended to the site when development occurs.  Certify the land as “shovel ready” through the States Certified Sites program, or at a minimum, have the pertinent information gathered to meet the Gold Shovel Program standards.  The sites should be listed through the St. Croix County Economic Development Corporation, Momentum West, the Wisconsin Economic Development Corporation and any applicable National Economic Development Organizations. This policy will be reviewed every two years. Policy approval date: ______________________ ____________________________ Jim Zajkowski, Mayor Attest: _____________________________ Michelle Scanlan, City Clerk Rev. 9/15/2022 Page 6 of 6  MEMO Prepared for: Forward New Richmond Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 21 Sep 2022 Subject: Business & Technical Park Land Sale Policy - Updates BACKGROUND INFORMATION: Our Business & Technical Park Land Sale Policy was previously approved in late 2020 with the caveat that City staff and FNR would review the document every two years, make appropriate changes/adjustments and re-approve. City staff made some minimal changes: - Date changes - Mapping changes to stay current with land sales RECOMMENDATION: City staff is recommending approval of the Business & Technical Park Land Sale Policy as presented. ATTACHMENTS: Business Technical Park Land Sale Policy - 2022bt CITY OF NEW RICHMOND: Business & Technical Park Land Sale Policy BACKGROUND: In the past, the City of New Richmond has purchased land for the purpose of promoting the City’s welfare, job creation and expanding its economic base. The main purpose for the land purchased in the Business & Technical Park is for industrial expansion and is mainly used to attract businesses and industries to locate in the City of New Richmond. Since desirable business and industry is often sought after by many communities, and since negotiations involve many variables (including land price), some accommodation for these negotiations must be factored into a set of guidelines. Since 2009, the City of New Richmond has used an internal cost and formula valuation process for land sales in its Business & Technical Park to create building value for its TID District and to create jobs for our community. This formula has been internally adjusted over the subsequent years. Forward New Richmond (“FNR”) would like to create a set of guidelines for staff to utilize relating to land sales in the Business & Technical Park. This policy includes guidelines that will explain how potential land sales in the Business & Technical Park will be evaluated and negotiated. This policy shall be reviewed every two years. PURPOSE: This policy shall serve as a set of guidelines for FNR and the City Council regarding land sales in the City’s Business & Technical Park. POLICY: The policy for Business & Technical Park Land Sales uses the following land values and formulas as a guideline and for competitive incentives when added building value and job creation in the City of New Richmond. Rev. 9/15/2022 Page 2 of 8 Cost of Land for “Commercial Sites” (see map below), shall be $8.00/sq. ft. Rev. 9/15/2022 Page 3 of 8 Cost of Land for “Industrial Sites” (see map below), shall be $50,000/acre. Rev. 9/15/2022 Page 4 of 8 Incentives/guidelines for land sales have been set as follows: For land that is considered “Commercial Sites,” the City Council has the ability to negotiate these costs, when applicable. For land that is considered “Industrial Sites,” the following building value and job creation calculations should be utilized: • For every full-time employee position created, an incentive of $10,000 will be given. o Job creation will be verified by payroll records • For every part-time employee position created, an incentive of $5,000 will be given. o Job creation will be verified by payroll records • A reduction in the cost of the land by an amount equal to $5,000 for each $100,000 of increased assessed value. (Example: $800,000 in new building value divided by $100,000 multiplied by $5,000 = $40,000 credit given). o Assessed value will be determined by the assessor • If the sale price of land is reduced to a zero value based on the aforementioned incentive formulas, the land may be sold at $1,000/acre plus closing costs and attorney’s fees. • For businesses currently located in the City considering relocation outside of the City of New Richmond, for every full-time employee position retained in the City, an incentive may be given. The employee creation incentive will be memorialized in a development agreement prepared by the City Attorney. The following is an example excerpt from a development agreement: “On or before January 1, 2024, Developer shall employ the equivalent of ten (10) additional full time employees, and shall provide evidence of such employment to the City. In the event the Developer fails to employ the equivalent of ten (10) additional full time employees by January 1, 2024, Developer shall pay to the City a penalty of $10,000 for each of the ten (10) full time equivalent positions not filled, which penalty shall be paid immediately due and payable to the City of New Richmond.” The assessed value will be memorialized in the development agreement prepared by the City Attorney. ROLES AND RESPONSIBILITIES: When a land sale opportunity arises, the project summary form must be completed and determined to be in compliance. Upon such determination, City staff will present the proposed project to FNR, which will make appropriate recommendations to the City Council. Unless otherwise directed by the City Council, City staff will lead all discussions with interested developers and their representatives. When a land sale is approved by FNR and the City Council, the City Attorney shall prepare an appropriate Development Agreement based upon the specific development. Rev. 9/15/2022 Page 5 of 8 PROCESS/GUIDELINES: When considering the sale of land, City staff and FNR shall follow the steps outlined below: Prospective buyer must complete “Project Summary Form” shown below: Rev. 9/15/2022 Page 6 of 8 1. Once the prospective buyer completes the form, City staff will review and complete the “For Use by City Staff” section. 2. If the prospective buyer is found to owe any fees, fines, and/or taxes to the City of New Richmond or New Richmond Utilities, the form will not be forwarded onto Forward New Richmond until such fees/fines/or taxes are paid in full. 3. City staff will review any Development Agreements with a current prospective buyer and will make sure said Development Agreements are in good standing. 4. The prospective buyer will be required to furnish a confirmation letter from their financial institution indicating that they have the financial means necessary or are otherwise able to borrow the amount necessary for the proposed project. The following key items should be found in the financing letter: Rev. 9/15/2022 Page 7 of 8  a. Project specific details. b. The details of the project have been reviewed, underwriting has been started or completed, and the lending institution if providing a proposal with specific terms. c. Financing terms: dollar amount of the proposal or commitment, purpose of the loan, term, amortization, collateral, etc. d. Timing and other requirements. e. On financial institution letterhead, signed by a person authorized to make the proposal or commitment. 5. If any unfavorable publicly accessible information is discovered regarding the prospective buyer that raises reasonable concerns about the short-term or long- term viability of the project or the good standing of the prospective buyer or its business, such information will be forwarded to the City Attorney for review before moving forward to FNR. 6. If the prospective buyer does not owe City fees, fines, or taxes and the records search results are favorable, the Project Summary Form and proposal will be brought to FNR for consideration. FNR will then analyze the Project Summary form and make a recommendation to the City Council to either move forward or deny the project. Policy approval date: ______________________ ____________________________ James Zajkowski, Mayor Attest: _____________________________ Michelle Scanlan, Clerk Rev. 9/15/2022 Page 8 of 8  MEMO Prepared for: Forward New Richmond Staff Contact: Noah Wiedenfeld Meeting: Forward New Richmond Committee - 21 Sep 2022 Subject: Strategic Plan BACKGROUND INFORMATION: The City of New Richmond is developing a strategic plan, which is often times compared to a "roadmap." A strategic plan is closely interconnected with the Comprehensive Plan, annual operating and capital budgets, Capital Improvement Plan, employee performance reviews, and work plans developed by the City Administrator. The strategic planning process is broken into phases to address three questions: 1. Where are we now? 2. Where are we going? 3. How do we get there? A community survey is available on the City's website and Facebook page. So far to date, it has been completed by over 260 people. Forward New Richmond members are encouraged to take the survey if they haven't already done so, and to share it with family, friends, and colleagues. At the meetings in September and October, staff will facilitate a couple of exercises to solicit feedback and ideas from Forward New Richmond which will be incorporated into the strategic plan.