Economic Development Commission

AGENDA Economic Development Commission August 4, 2021, 5:15 PM Council Chambers, First Floor Oakdale City Hall 1. CALL TO ORDER / ROLL CALL a. Introduce New Council Liaison Susan Olson and New Commissioner Jeff Bates 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF MINUTES a. June 2, 2021 4. CONSENT a. None 5. MANAGEMENT REPORTS a. OLD BUSINESS i. None b. NEW BUSINESS i. Council Liaison Updates* ii. Special Election of Chair iii. 4Front Technology + Office PUD Amendment and Future Plans iv. Bethesda Cornerstone Community Approved Plans 6. ALL OTHER ITEMS a. Commissioner Updates* b. Development Updates* c. Updated EDC Roster 7. ADJOURNMENT *Items marked with an asterisk have no accompanying materials The next regular Economic Development Commission meeting will be held September 1, 2021.  REGULAR MEETING ECONOMIC DEVELOPMENT COMMISSION CITY OF OAKDALE JUNE 2, 2021 CALL TO ORDER A regular meeting of the Economic Development Commission of the City of Oakdale was held on Wednesday, June 2, 2021 at the Oakdale City Hall, Oakdale, Minnesota. Chair Landis called the meeting to order at 5:15p.m. CALL OF ROLL On a call of roll, the following were present via Zoom meeting. Chairperson: Mark Landis Commissioners: Dave Halper David Lewis Gary Livingston Scott Oechsner Gary Severson Lynn Stafford Robert Stiglich Erin Voca Frank Orsello Absent: Stacie Penn Bill Burns Holly Koep Also Present: Linnea Graffunder-Bartels, Senior Community Development Specialist Paul Reinke, Mayor Colleen Swedberg, City Council Liaison Quorum Present: YES ☒ NO ☐ PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES A MOTION WAS MADE BY COMMISSIONER ORSELLO, SECONDED BY COMMISSIONER LEWIS, TO APPROVE THE MINUTES OF THE REGULAR MEETING OF MAY 5, 2021. Ayes 10 Abstain 0 Nays 0 Motion Carried Economic Development Commission Minutes June 2, 2021 Page Two OLD BUSINESS None NEW BUSINESS Council Liaison Update Councilmember Swedberg reported on the following: • Landscape Revival, June 12, City Hall parking lot, 9-1pm. Local Option Sales Tax Presentation Mayor Reinke reported on two capital projects for Oakdale. The projects include an expansion and garage for the Police Department and a new facility for Public Works. The current Public Works building is experiencing water seepage that could create mold. 3M is willing to sell a site on Granada Avenue and County 14 (old Hwy 5) for a reasonable price. This site is considered polluted and 3M will pay for and cleanup site for the building project. The cost for the Police Department expansion is $15 million and Public Works is $22 million, totaling $37 million. There are two options to pay for projects; increase the property tax or institute a local sales tax. Council has been working with state legislature to get permission to add a Local Option Sales Tax to the next ballot to finance the two projects. The tax would be 0.005 percent on all taxable purchases within Oakdale which would collect $1.9 million annually over 20 years. Oakdale has the right, if approved by legislature, to extend to 25 years if needed. If granted permission by legislature, it will be on the ballot in the next local general election. In response to Commissioner Severson question if neighboring communities have a local sales tax, Mayor Reinke responded that Edina is the closest of the 21 cities asking for legislature approval. None of our bordering cities have a tax. Council has discussed the possibility of the sales tax harming Oakdale’s competitiveness but feel it will be a non-issue. Chair Landis and Commissioner Orsello are in favor of the sales tax and believes the large retailers will help considerably. In response to Commissioner Voca’s question how the sales tax could be promoted with a positive spin, Mayor Reinke replied we will need to explain who will be paying for it. If not approved it will become a property tax and all residential and commercial taxpayers will have it added to their property tax. Currently there is support in both House and Senate for the bill and the hope is to move forward with the tax. Taxpayer money can be used to inform people of the ballot question but not to persuade to vote yes. Various groups will also help communicate the process. Nothing will be done until decision by legislature. Commissioner Halper reiterated the tax will be spread out to a larger group rather than adding to property taxes and asked how businesses will report the extra tax. Mayor Reinke stated that businesses will need to track taxes and report at end of year. In response to Commissioner Severson’s question asking if state collects tax and city is reimbursed or are taxes paid directly to the city, Mayor Reinke responded he believes the state collects tax. Economic Development Commission Minutes June 2, 2021 Page Three In response to Commissioner Livingston’s question if money goes into a dedicated fund or into the general fund, Mayor Reinke replied it goes into a dedicated fund with the goal to pay back bond as soon as possible. With the additional retail coming into Oakdale it is possible to repay bond sooner. Statute requires that payment ends at a maximum of 25 years or as soon as you raise enough to cover the debt amount. Commissioner Livingston commented that bond interest rates are low and it could be very advantageous. Mayor Reinke explained that Oakdale Police Department will be remodeled and have a garage built. Public Works will have a new building and garage facilities for vehicles and equipment. Ideally, the Public Works building should be built first and move police employees into old building until PD remodel is complete. The existing Public Works building is being tested bi-annually for air quality. In response to Commissioner Oechsner’s question asking why there will be a new Public Works building when last year the existing building was going to be repaired, Mayor Reinke replied at that time the 3M deal was not in place and it was less costly to repair/remodel existing building. It was later found that the existing site will not accommodate for the equipment storage needed. Mayor Reinke stated that the legislature requires a demonstration of regional significance for both projects. Information shared with both House and Senate: • Population: 2020 approximately 29,600 and 2040 is projected to have a 21% increase to 36,000. • Households: 2020 approximately 12,000 and 2040 is projected to have a 24% increase to 15,000. • Employment: 2020 approximately 11,600 and 2040 is projected to have a 4% increase to 12,100. In response to Commissioner Orsello’s question of which legislators are working on this issue, Mayor Reinke responded, Senators Wiger, Housley and Kent. In the House, Representatives Lillie and Strong. DEVELOPMENT UPDATES Ms. Graffunder-Bartels provided an update on the following: Willowbrooke • Continental Properties was approved to build 280 rental townhomes in a gated community in the southeast corner of the development. Construction will begin late summer, early fall. Development will include a clubhouse and pool for residents. • Lennar Home Builders will begin construction on 51 Villa homes and 63 Carriage homes. Helmo Station - Bethesda Cornerstone Community is working on a proposal for a multi-family apartment on the southwest corner of development. Final plans expected this summer. Economic Development Commission Minutes May 5, 2021 Page Four Greenway Station – Comprehensive Plan will be amended to include Greenway Station to allow plan to proceed. Hom Furniture – Demolition began in April with plans to start renovations in May. 4Front Technology + Office Campus Amendment to PUD - Slumberland would like to add light manufacturing and office showroom/warehouse as allowable uses for site. Approval expected in June. Plans for a 300 sq. ft. office building to be built later this year. City Water Treatment Facility is under construction on Helmo Avenue. In response to Commissioner Orsello’s question regarding type of renovations Hom Furniture is doing to the existing building, Ms. Graffunder-Bartels replied they are removing the sloped floors and gutting the building. In response to Commissioner Halper’s question asking if affordable housing is offered at the Helmo Station site, Ms. Graffunder-Bartels responded yes, there will be affordable housing offered as well as units set aside for adults with intellectual and developmental disabilities. MNDEED – Publication is online only. Ms. Graffunder-Bartels mentioned the June publication has interesting articles regarding employment and re-employment post COVID. COMMISSIONER UPDATES Commissioner Lewis commented on a statement from last month’s EDC meeting regarding the role of an EDC Commissioner. Mr. Lewis disagrees with the statement that it is a stepping stone to the City Council. Commissions are sometimes used as that but he believes the primary role is engaging with citizens in the community. Mr. Lewis believes it is their responsibility to gather and share information with the community and to inform council of issues and concerns. Councilmember Swedberg clarified that the comment was not meant to imply commissions are a stepping stone to City Council but rather ambassadors of the city. Ms. Swedberg appreciates the EDC educating people and supporting council. Commissioner Severson mentioned Washington County Parks are looking for a volunteer pruner. Commitment involves 10 hours of pruner over a two year period. Training provided. Information on Washington County website or contact Gary Severson. Chair Landis thanked everyone for their discussions and questions and appreciates the input and time. Announcement was made regarding the passing of Bill Rasmussen. He was active in the community for over 25 years and will be greatly missed. NEXT COMMISSION MEETING The next Economic Development Commission meeting is scheduled for August 4, 2021 at 5:15pm. Economic Development Commission Minutes May 5, 2021 Page Five ADJOURNMENT A MOTION WAS MADE BY COMMISSIONER LIVINGSTON AND SECONDED BY COMMISSIONER OECHSNER TO ADJOURN THE ECONOMIC DEVELOPMENT COMMISSION MEETING OF JUNE 2, 2021 AT 5:53 PM. Ayes 10 Abstain 0 Nays 0 Motion Carried Respectfully submitted, Teresa Buhl, Recording Secretary TO: Economic Development Commission FROM: Linnea Graffunder-Bartels DATE: July 27, 2021 SUBJ: Special Election of Commission Chair BACKGROUND The position of EDC Chair is currently vacant. The commission term of the previous Chairperson, Mark Landis, expired on June 30, 2021. Chapter 8 of the city code states that in the event that the Chairperson is not able to serve out their term, the Vice-Chairperson shall serve as Acting Chairperson until such time as a special election is held to elect a new Chairperson. The special election for Chairperson shall take place at the commission’s August 4th meeting and will follow the nomination and balloting process for Chairperson as detailed in Attachment A. All commission members are eligible to serve as Chairperson. In the event that the Vice- Chairperson is elected as the new Chairperson, a special election for Vice-Chairperson will take place following the nomination and balloting process. ELECTION PROCESS The following is the process for the election of Chairperson. 1. Nominate candidates for the Chair position. Nominations do not require a "second", but other members may "second" the nomination to show support. "Motion to nominate Commissioner _______ for the position of Chairperson." 2. When there are no new nominations to be made, somebody should motion that nominations close. The motion to close requires a "second". "Motion to close nominations for the position of Chairperson." 3. Election using the ballot provided. Commissioners write in their choice from those nominated and pass the ballots to staff for tabulating. 4. Staff will announce results. 5. Election of Chairperson requires a motion and a second. "Motion to elect Commissioner ____________for the position of Chairperson of the Economic Development Commission for a period of six (6) months, commencing with the August 4, 2021 meeting". ATTACHMENTS A: Election Process and Ballot TO: Economic Development Commission FROM: Linnea Graffunder-Bartels DATE: July 29, 2021 SUBJ: 4Front Technology + Office and Bethesda Cornerstone Village Oakdale At the August 4th EDC meeting, staff will present an in depth overview of two major new developments coming to Oakdale. These include new buildings at the 4Front Technology + Office Campus as well as Bethesda Cornerstone Village apartments at Helmo Station. This memo provides introductory information about both projects in advance of the meeting. 4Front Technology + Office The 4Front Technology + Office Campus at the intersection of 694 and Hwy 14 is home to world class scientific labs as well as premium office space. Originally built by 3M and later expanded in the mid-1990’s as the headquarters for Imation, the property was later purchased by Slumberland in 2016. The property remains a state-of-the-art scientific facility, with Class A office and amenity spaces that are recently updated. Slumberland has successfully attracted tenants to fill in the 550,000 SF of space in the four existing buildings, and now are turning their attention to the 65 acres of undeveloped land that are available for campus expansion. There are about 50 acres of land available in the western expansion area, and 15 acres in the eastern expansion area. Land uses on the campus are regulated by a Planned Unit Development (PUD) zoning ordinance that was originally based upon the intentions of Imation to build out the campus for their needs. The current owner and their property developer requested an amendment to the PUD to permit additional uses on a portion of the western expansion area. The additional uses included Light Manufacturing and Office-showroom/Office warehouse, to be allowed in addition to the already allowed Office and Research and Development Uses. The Planning Commission determined that the request to amend the PUD was consistent with the goals and intent of the Comprehensive Plan, those uses will be compatible with surrounding land uses, and there is sufficient infrastructure to serve the proposed development. The City Council approved the request on June 8, 2021. These PUD amendments were requested by the property owner and their developer in order to facilitate up to 310,000 square feet of new construction. The developer states that there is a high demand for Light Manufacturing and Office-showroom/Office-warehouse space and allowing those uses would realize development on the site much sooner than waiting for an Office or Research and Development user. In this initial phase of development, they are proposing to construct up to 310,000 square feet of new space on approximately 24 acres. Depending on the number and type of businesses interested in this location, the site could be developed with either one large building or two smaller buildings. The developer states that typical businesses need approximately 20,000-60,000 square feet for their operations, so there could be several different users in the building(s). The PUD identified that it is the intent of this area to increase the number of living-wage jobs available to the residents of Oakdale. In order to better ensure that the new spaces provide opportunities for employment rather than just warehousing materials, the amended PUD requires twenty-five percent of an Office-showroom/Office-warehouse space be dedicated to office activities since most of the job activity takes place in the office area and not the  2 display/storage space. The previous ordinance required twenty-percent office space in Office-showroom/ Office-warehouse uses. The additional five percent was intended to ensure more employment opportunities with these new uses allowed at the 4Front campus. The developer has the flexibility to spread out the office space between users in a building; some users may have less office space and others more, but the overall total shall be twenty-five percent office space. The amendment also allowed the clear ceiling height in the warehouse portion of an Office-showroom/Office-warehouse to be up to thirty-two feet to accommodate more storage area; the previous limit was fourteen feet. Clear height is the open area of a warehouse under any lights, trusses, etc. allowing the entire space to be used for “racking” or the stacked storage of goods and materials. The developers have stated that this type of space is in high demand. Since the Imation days, the campus has been a hub for well-paying jobs and a diverse collection of businesses. Employment opportunities that offer living wages contribute to a rising standard of living for those employed and contribute to the overall quality of life in the community. The 4Front Office and Industrial area is also intended to support the diversification of the local economy by providing employment opportunities in a variety of industry types. This next phase of development at 4Front is expected to kick off with a site plan application this fall. Bethesda Cornerstone Village Oakdale at Helmo Station The first development project at Helmo Station is preparing for construction later this year. Bethesda Lutheran Communities (Bethesda) plans to develop a 71-unit apartment building called Cornerstone Village Oakdale at 390 Helmo Ave. North. This apartment project will include both market-rate rents as well as at least 50 apartments with affordable rents, of which up to 17 will be dedicated for adults with intellectual and developmental disabilities. Bethesda received all of their land use approvals from the City Council on July 13th, 2021. The property is located at the corner of 4th Street and Helmo Avenue, adjacent to the Gold Line Bus Rapid Transit guideway. The Cornerstone Village project will be the first development at Helmo Station to be constructed in accordance with the Helmo Avenue Station Bus Rapid Transit Oriented Development (BRTOD) Plan. The BRTOD Plan describes the land use framework, auto and pedestrian circulation, park and open space plans, and infrastructure necessary to redevelop the area into a transit-supportive and economically vibrant area. The BRTOD Plan leverages the Gold Line transit investment to increase housing and employment options for Oakdale residents as well as improve the tax base for the City. The Bethesda project is the first of several in the works for the Helmo Station area. Bethesda seeks tax increment financing support from the City to address extraordinary costs related to soil conditions and extraordinary construction material cost increases. Without tax increment financing, Cornerstone Village Oakdale cannot be developed. Bethesda has received significant financial support from federal, state, and county partners for Cornerstone Village Oakdale. Additionally, a group of Washington County parents of adults with intellectual and developmental disabilities repeatedly expressed their strong support for the project. On June 22, 2021, the City Council adopted a resolution establishing the fundamental terms of tax increment assistance to Bethesda in support of the project. The City Council will consider final approvals of the tax increment financing on August 10th.  3 The 2040 Oakdale Comprehensive Plan supports Bethesda’s project and the use of tax increment financing for the construction of affordable housing: Housing Chapter, Goal 1: All people, regardless of age, income, family status, ability, race or ethnicity shall have realizable choices and access to a safe, stable, and affordable home. Policy 3: Facilitate the creation of at least an additional 791 housing units affordable to households earning up to 80% of area median income, by using a variety of tools such as tax increment financing, density bonuses, fee waivers, zoning and subdivision modifications, etc. to accommodate the existing and future need for affordable homes for individuals, families, and persons experiencing homelessness and the local work force. Land Use Chapter, Goal 2: Certain policies shall guide the City’s actions to ensure the redevelopment and development of certain parcels and areas. Policy 5: Provide financial assistance to ensure redevelopment and development projects are financially feasible. The Cornerstone Village Oakdale project will build 6.3% of Oakdale’s goal to create 791 more affordable homes.  ECONOMIC DEVELOPMENT COMMISSION ROSTER Name Address Email Phone # Term Expires Year Appointed Bill Burns 1453 Helmo Ave. N Bill@InsuranceByBurns.com 651-770-1011 (H) 6/30/23 2010 ACTING CHAIR 651-330-2491 (W) Jeff Bates 6165 Upper 44th St. N. Bates.jeff@gmail.com 651-245-1398 6/30/24 2021 Dave Halper 6808 Upper 28th St. N David_halper@comcast.net 651-777-3635 6/30/24 2016 David Lewis 6374 – 13th St. N dtl41109@gmail.com 801-995-1272 6/30/22 2019 Resigning 8/10 Gary Livingston 4435 Holm Oak Lane garylivingston@comcast.net 651-779-6139 (H) 6/30/24 2016 651-354-4464 (C) Frank Orsello Cavalier Barbers faorsello@gmail.com 651-770-2804 (H) 6/30/23 1994 6080 – 12th St. N 651-738-2797 (W) Stacie Penn Carol Mathey's Center spenn@cmmcc.org 651-230-5937 (C) 6/30/22 6060 - 43rd St N 651-777-6668 (W) 2013 Gary Severson 7595 – 23rd St. N gaseverson@gmail.com 651-283-0903 6/30/22 2021 Lynn Stafford 1610 Granada Ave. N Stafflynn62@gmail.com 651-621-0706 6/30/22 2021 #112 Robert Stiglich 1260 Helmo Ave. N robert@stiglichconstruction.com 651-777-8889 (H) 6/30/23 1993 651-731-2000 (W) Erin Voca 1291 Grospoint Ave. N evoca@live.com 612-396-2819 6/30/23 2021 VACANCY 6/30/24 Holly Koep OACC Vice President apollohollyk@gmail.com Ex officio Member Council Liaison: Council Member Susan Olson susan.olson@ci.oakdale.mn.us 651-324-7078 Staff Liaison: Linnea Graffunder-Bartels linnea@ci.oakdale.mn.us 651-730-2721 Commission Secretary: Teresa Buhl teresa@ci.oakdale.mn.us 651-739-5086 Updated: 7/2021