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2021.02.16 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL  REGULAR MEETING  TUESDAY, FEBRUARY 16, 2021 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from January 5, 2021 Annual Organizational Meeting 4. Presentation of 2020 Annual Report 5. Consider approval of 2021 Work Program 6. Development update * 7. Other business * 8. Adjournment * *Items for which no materials are included in the packet Page 1 of 3 Minutes of the Economic Development Authority of the City of Crystal Annual Organizational Meeting Council Chambers January 5, 2021 1. Call to Order President LaRoche called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:28 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, Brendan Banks, John Budziszewski, David Cummings, Therese Kiser, Nancy LaRoche and Olga Parsons. The following staff were present: Executive Director Anne Norris, Deputy Executive Director John Sutter and City Attorney Troy Gilchrist. 3. Oath Office The oath of office was administered to Commissioners Adams, Budziszewski, Cummings and LaRoche. 4. Election of Officers The Mayor recommended the following slate of EDA officers for 2021: President: Parsons Vice President: Banks Secretary: Kiser Treasurer: LaRoche Moved by Commissioner Budziszewski (Banks) to approve the Mayor’s recommended slate of EDA officers for 2021. Motion carried with Commissioners Adams, Banks, Budziszewski, Cummings, Kiser, LaRoche and Parsons voting aye. Commissioner LaRoche transferred the gavel and control of the meeting to newly elected President Parsons. 5. Approval of Minutes Moved by Commissioner Adams (LaRoche) to approve the minutes from the December 1, 2020 meeting. Motion carried with Commissioners Adams, Banks, Budziszewski, Cummings, Kiser, LaRoche and Parsons voting aye. 6. Presentation - Development update and 2021 work program preview Page 2 of 3 Mr. Sutter presented an update on previously approved or anticipated projects and a preview of the 2021 Work Program. Mr. Sutter answered a question about 3240 Hampshire, answering that staff does not recommend selling it at this time due to potential development of other vacant lots to the north. Mr. Sutter answered a question about the status of 3600 Douglas Dr. N. and 5358 West Broadway, and suggested that residents desiring a particular company or business to take over those spaces could contact those businesses directly. 7. Other Business There was no other business. 8. Adjournment Moved by Commissioner Budziszewski (Kiser) to adjourn the meeting. Motion carried with Commissioners Adams, Banks, Budziszewski, Cummings, Kiser, LaRoche and Parsons voting aye. The meeting adjourned at 7:58 p.m. Page 3 of 3 These minutes of the January 5, 2021 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Olga Parsons, President ATTEST: ______________________________ Therese Kiser, Secretary EDA Work Session February 4, 2020 February 16, 2021 Staff Contact: John Sutter Community Development Director (763) 531-1130 john.sutter@crystalmn.gov www.crystalmn.gov Scattered Site Redevelopment 2018: •Ten lots sold Includes five city-owned surplus property lots •$61,900 average lot price 2019: •Seven lots sold Includes six city-owned surplus property lots •$68,333 average lot price 2020: •No lot sales There was plenty of demand, but the remaining EDA properties have development challenges Scattered Site Redevelopment Scattered Site Redevelopment Home Improvement Grant Program •Primarily funded with increment from existing housing TIF district •92 grants in 2020 54 in 2019 •$2,585 Average Grant in 2020 $2,979 in 2019 •$12,925 Average Project in 2020 $14,895 in 2019 •$237,775 Total Grants in 2020 $160,873 in 2019 •$39,304 Total Admin in 2020 $26,681 in 2019 Community Fix-Up Fund Loans •Primarily funded with increment from existing housing TIF district •Our funds are used to buy down the interest rate •May be paired with a Home Improvement Grant •5 loans with $113,759 project value in 2020 19 and $264,646 in 2019 •$6,061 EDA expenditure in 2020 $15,911 in 2019 Deferred Home Rehab Loans •Federal (HUD/CDBG) and state funds administered by Hennepin County •Repayment deferred, then forgiven if borrower continues to own and occupy for 15 years •5 loans in 2020 6 in 2019 •$110,255 total value of projects in 2020 $148,000 in 2019 Other Home Improvement Assistance Beautification - Planter Boxes •High-density plastic with internal water reservoir •Installed by Public Works in spring and removed in fall •Weeding and watering by adjacent businesses •20 boxes ⁻Continued -8 boxes on Bass Lake Road ⁻New for 2020 -6 on 42nd and 6 on Douglas at 36th •Paid for out of Beautification line item in EDA budget ⁻Cost to purchase 12 additional boxes was $3,696 (one-time expense) ⁻Cost for plant materials was $2,653 for 20 boxes plus other city planters (annual expense) “Love Local” Business District Initiative •What was it? -Hennepin County pilot project to promote local businesses during the holiday season -Crystal’s Bass Lake Road strip selected as one of 11 business districts in the county •What did it do? -Billboards in or near each district -Print ads for four weeks in Sun Post; one insert in Sun Post & Star Tribune -Communications toolkit -Website and social media posts •What did we learn? -Did not have a noticeable, immediate impact on business activity -The tools are scalable and expandable to other/larger business districts -Better to use the low/no-cost tools in a sustained manner to build consumer awareness gradually over time Connecting Residents and Businesses to COVID -19 Resources and Assistance •Housing assistance outreach (both owner-occupied and rental property) -City website and social media posts -Used our email list for rental property owners to notify them of assistance and asked them to pass info to tenants •Business relief outreach -City website and social media posts -Created a business email list that will be useful for other purposes -Assistance was provided by federal, state and county government -Example: $688,000 of Hennepin County assistance distributed to 74 Crystal businesses in 2020 (map at left) City property at end of 2020 (north half) City property at end of 2020 (south half) February 16, 2021 John Sutter Community Development Director (763) 531-1130 john.sutter@crystalmn.gov www.crystalmn.gov Home Improvement Assistance •Program budgets were adjusted in 2020 to reflect increased demand •Contract with Center for Energy & Environment runs through June 2022 •EDA will consider next contract (for July 2022 -June 2023) in 4Q 2021 •Programs are largely funded with available increment from a housing TIF district that expires at the end of 2025 •TIF fund balance available after 2025 should be sufficient to continue programs through 2028 •EDA, Planning Commission and City Council will be asked to review and approve TIF budget amendment in March 2020 Continue existing programs Home Improvement Grant and Community Fix-Up Loan Development Opportunities Developer Meetings •Staff continues to meet with developers to promote redevelopment opportunities •Focus has been on the Town Center area around Becker Park •Pandemic-related uncertainty in the markets has made developers even more cautious •The lack of vacant land is a significant barrier to new development –other cities have more •The relatively low vacancy rate in Crystal’s commercial buildings reduces owners’ incentive to sell for redevelopment 2021 activities •Prepare “one-pagers” for several potential redevelopment sites where owners have expressed an interest in selling –it’s the equivalent of an elevator pitch for developers •Follow up with developers from previous discussions and seek out additional developers •Seek Hennepin County buy-in for realignment of Douglas Dr/West Broadway intersection •Goal is to put 1-2 deals together by end of 2021 for 2022 construction Beautification and Branding – Continued/Expanded Initiatives Planter Boxes •20 boxes will be placed in same areas as last year: Bass Lake Road, 42nd Ave and Douglas Dr/36th Ave •$6,500 budgeted for 2021: -$3,000 available for flowers/materials -$3,500 available to purchase 8 more boxes ▪3-4 for 36th Ave median west of Hwy 100 ▪4-5 to augment 42nd and Douglas/36th Litter Clean-Up (Sentenced to Service) •STS crew picks up litter on commercial segments of Bass Lake Road, West Broadway, 42nd Ave, Douglas Dr/36th Ave and Bottineau Blvd •Once every three weeks from April to November •Can’t fully control litter, but it makes a difference •$4,400 estimated expenditure •$5,150 budgeted in Rubbish Removal line item Façade Enhancement Incentive •EDA share would be 50% of qualifying costs secured by a no-interest deferred loan to be forgiven after 5 years •We will seek Hennepin County funding (again) •Staff may ask EDA to consider city-funded program if the county says no •Challenges: ▪Most commercial spaces are not owner-occupied ▪Difficult to achieve desired outcome without design requirements Murals •Identify preferred locations (location, visibility, etc.) •Seek private grants (typically require funds to pass through the city) •Would need buy-in from property owners “Town Center” Branding •Will first use in marketing materials for developers •Will update & refine –can be updated/changed more often than city logo •Expectation is for gradual uptake by the community -like the neighborhood names which were developed more than 20 years ago Beautification and Branding – New Initiatives Disposition of EDA Property 4824 56th •Could be split into two 52.5’-wide single family lots •Following up with MPCA and environmental consultant to see if monitoring well on EDA lot can be removed •Potential 2022 lot sale 5565 Vera Cruz •Discussions with adjacent owner (flower shop) stopped due to pandemic •Will try again in 2021 •Could sell EDA lot to them, or rearrange lot lines to create a buildable single family lot 4741 Welcome •Guided medium density residential (2-6 units) •2020 RFP re-issued with no submittal deadline and a two-year completion requirement (instead of one) •At least two builders have expressed interest •If no proposals by April, will discuss options with EDA Could explore splitting into two 40’-wide lots for single family homes –would probably sell quickly Disposition of EDA Property 3443 Douglas Dr and 3443 Edgewood •Vacant lots south and west of Hampton Companies site at 3501 Douglas Dr •Extension of Edgewood north of 34th would be required for development of EDA lots and others owned by private parties -may not be feasible •Reevaluate in 2022 after Hampton Companies assisted living facility is complete 3401-3415 Douglas Dr •Guided medium density residential -up to 16 units - presumably townhomes but could be small apt. bldg. •RFP in spring after 3501 Douglas gets underway 3354 Douglas Dr and 6213 34th •Guided medium density residential -up to 12 units •Property to south (3342 Douglas Dr) has a single family home on two oversized lots •3342 Douglas combined with current EDA site could accommodate up to 30 units •Hold until owner of 3342 Douglas ready to sell Disposition of EDA Property 3240 Hampshire •Remnant left over after selling lot at 3244 Hampshire for new home in 2000 •South portion not buildable (soils/wetland) •North portion (east of/behind 3244) may be buildable but would require driveway, water and sewer from Georgia Avenue •Determined infeasible as stand-alone project; only makes sense if Georgia were extended to develop more lots •Continue to hold until there is interest from owners to the north in selling for development 3556 Major •Currently for sale for $25,000 for new home construction; lot is exceptionally narrow 3409 June •One of 15 contiguous vacant lots with limited development potential due to steep slope, lack of access and fragmented ownership (there are ten other owners) •Four lots are owned by homeowners on Kyle across the unimproved alley •Attempt to sell to homeowner across alley Next Steps February 16 meeting: Staff to answer questions and request EDA board approval of the 2021 Work Program Thank you