2022.03.01 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, MARCH 1, 2022
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 4, 2022 Annual Organizational Meeting
4. Presentation of 2021 Annual Report
5. Consider approval of 2022 Work Program
6. Other business *
7. Adjournment *
*Items for which no materials are included in the packet
THIS PAGE INTENTIONALLY BLANK
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Minutes of the
Economic Development Authority of the City of Crystal
Annual Organizational Meeting
Council Chambers
January 4, 2022
1. Call to Order
President Parsons called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:20 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: Brendan Banks, John
Budziszewski, David Cummings, Nancy LaRoche and Olga Parsons.
Commissioner Therese Kiser observed the meeting remotely via Zoom but did not
participate as a voting member.
The following staff were present: Executive Director Anne Norris and Deputy Executive
Director John Sutter. City Attorney Troy Gilchrist attended remotely via Zoom.
3. Election of Officers
The Mayor recommended the following slate of EDA officers for 2022:
President: Banks; Vice President: Kiser; Secretary: LaRoche; Treasurer: Parsons
Moved by Commissioner Budziszewski (LaRoche) to approve the Mayor’s
recommended slate of EDA officers for 2022. Motion carried.
Commissioner Parsons transferred the gavel and control of the meeting to newly elected
President Banks.
4. Approval of Minutes
Moved by Commissioner Budziszewski (Parsons) to approve the minutes from the
December 7, 2021 meeting. Motion carried.
5. Other Business
Staff provided an update on business properties and potential developments in 2022.
6. Adjournment
Moved by Commissioner Budziszewski (LaRoche) to adjourn the meeting. Motion
carried. The meeting adjourned at 7:25 p.m.
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These minutes of the January 4, 2022 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Brendan Banks, President
ATTEST:
______________________________
Nancy LaRoche, Secretary
EDA Work Session
February 4, 2020
March 1, 2022
Staff Contact:
John Sutter
Community Development Director
(763) 531-1130
john.sutter@crystalmn.gov
www.crystalmn.gov
EDA/City Lots
Redevelopment
2018:
•Ten lots sold
•$61,900 average lot price
2019:
•Seven lots sold
•$68,333 average lot price
2020:
•No lot sales
2021:
•4741 Welcome sold for
$100,000 (four-unit bldg.)
•3556 Major sold for $25,000
(single family home)
EDA/City Lots Redevelopment
EDA/City Lots Redevelopment
Home Improvement
Grant Program
102 grants in 2021
92 in 2020
$3,525 Avg. Grant in 2021
$2,585 in 2020
$17,624 Avg. Project in 2021
$12,925 in 2020
$359,531 Total Grants in 2021
$237,775 in 2020
$62,730 Total Admin. in 2021
$39,304 in 2020
•Program demand increased
significantly in 2020-2021
•New guidelines in 2022 will
bring expenditures in line
with available revenues
Redevelopment
•5240 Apts (Sand Companies)
58-unit, 4-story building proposed on vacant
1.75 acre site at 5240 West Broadway
June: EDA preliminary approval for 10-year TIF
July: Developer submitted application for tax
credits and other financing (Jan. 2022 award)
•Potential Sites
Completed
marketing fliers
with owner
contact, zoning
and utility info
Met with
developers to
promote sites
Outreach to
owners about
development
opportunities
Beautification -Planter Boxes
•30 boxes located on Bass Lake Road, 42nd
Ave., 36th Ave. and Douglas Dr.
•Public Works plants & places in spring,
removes in fall for overwinter storage
•Weeding/watering by adjacent businesses
Other Activities
Business Outreach
and PromotionSentenced
to Service
Litter Removal
Encouraging
Entrepreneurship
Stable Neighborhoods
& Blight Prevention
City property at end of 2021 (north half)
City property at end of 2021 (south half)
March 1, 2022
John Sutter
Community Development Director
(763) 531-1130
john.sutter@crystalmn.gov
www.crystalmn.gov
Home Improvement Grant Program
•Administered by Center for Energy
& Environment
•Current CEE contract through June
2023; EDA considers July 2023 -
June 2024 contract in 4Q 2022
•Program budget amended in 2020-
2021 to reflect increased demand
•Program guidelines changed at end
of 2021 to reduce expenditures and
bring in line with available revenues
•Program largely funded with
increment from housing TIF district
that expires at the end of 2025
•TIF fund balance available after
2025 sufficient to continue grant
program through 2028
Redevelopment -5240 Apts
•Project awarded tax credits and other
financing in January
•Developer submitting rezoning and
site/building plan application in April
•Developer submitting TIF application
concurrent with rezoning application
•Construction start in fall 2022 with
completion and occupancy in 2023
Other Redevelopment Opportunities
Developer Meetings
•Staff continues to meet with developers to
promote redevelopment opportunities
•Focus has been on the Town Center area
•Significant barrier to new development is lack
of vacant land –other cities have more, and
our only vacant site at 5240 West Broadway is
about to be developed (Sand Companies)
•The relatively low (10%) vacancy rate in
Crystal’s commercial buildings reduces owners’
incentive to sell for redevelopment
2022 activities
•Continue outreach to property owners and prepare potential development site fliers
•Follow up with developers from previous discussions and seek out additional developers
•Continue to push Hennepin County and seek other agency funding for transformative
realignment of Douglas Drive -West Broadway intersection
•Goal is to put another deal together for 2023 construction (5240 Apts expected to be
under construction in fall 2022)
•New in 2022
•Hennepin County awarded $30,000 to
the EDA for this program
•Available for older buildings on Bass
Lake Road, 42nd Ave. and Douglas Dr.
•Assistance is a no-interest, deferred,
forgivable loan for 50% of project cost
Minimum project size is $10,000 (which
would mean a $5,000 forgivable loan)
Maximum forgivable loan is $12,500
Loan balance reduced by 10% each year so
fully forgiven after 10 years
Payoff required if owner sells property;
funds re-used for additional projects
•Architectural design services provided
by EDA (max. $1,000 per business and
$3,000 per property)
Storefront / Façade
Enhancement Incentive
Beautification and Branding
Continued from 2021:
•Planter Boxes
30 boxes will be placed in
same areas as last year: Bass
Lake Road, 42nd Ave., Douglas
Dr. and 36th Ave.
•Litter Clean-Up (STS)
Sentenced to Service crew
picks up litter on commercial
segments of Bass Lake Road,
West Broadway, 42nd Ave,
Douglas Dr/36th Ave and
Bottineau Blvd
Increased frequency to further
improve litter control
(consecutive weeks after
snowmelt in April, then every
two weeks through October)
New in 2022: Median planting on 36th
Ave. west of Hwy 100 interchange
Center of concrete median to be cut out,
gravel base removed and soil added
Plantings will be deciduous trees, low
maintenance shrubs, grasses and ground cover
To minimize cost, no irrigation or power will be
installed (Parks crew will water for first 2-3
years until plants are well established)
Target date: Fall 2022 (depending on Parks
crew availability)
Additional Murals
•Identify preferred locations
(location, visibility, etc.)
•Would need buy-in from
property owners
•Seek private grants (typically
require funds to pass
through the city) -perhaps
“Cultivate Bottineau 2.0”
Beautification and Branding
“Town Center” Branding
•First used in 2021 marketing
materials for developers
•Will update & refine –can be
updated/changed
Small Business Promotion
•Small Business Saturday + promotion
throughout holiday season
•Use low cost approaches like
hashtagging (need to recruit local
businesses to build momentum)
•Do more each year (learn what works -
and what doesn’t - as we go)
Disposition of EDA Property -4824 56th
•Lot is 105’ wide and contains 0.45 acre
•Subdivision into two single family lots
would have been the best option
Not possible due to County prohibition on
cutting into Bass Lake Road to install additional
water & sewer services
•Next best option is to sell it for
construction of a two-family dwelling
•Wrapping up environmental study re:
adjacent leaksite at former gas station
•Anticipated next steps:
April-May:EDA authorizes Request for
Proposals for marketing lot to builders
May-June:EDA selects builder
July-August:Response Action Plan prepared
to satisfy requirements related to leaksite
(RAP simple enough to not need grant)
September-October: EDA holds public
hearing and approves final terms of
development agreement; lot sale closes
Construction could begin in 4Q 2022 or
builder may wait until 2023
Disposition of EDA Property -3401-3415 Douglas Dr
•Site contains 0.69 acre and is guided
medium density (up to 16 units)
•Environmental issues due to leaksite
More significant contamination than 4824 56th
•Best option is to sell it for construction
of a single building (apartment or
commercial, depending on market)
Townhomes or other multiple building
developments not feasible due to contamination;
grant funding will be needed for development
•Anticipated next steps:
April-May:EDA authorizes Request for
Proposals for marketing lot to builders
May-June:EDA selects builder
July-August:Response Action Plan prepared
to satisfy requirements related to leaksite
September-October: EDA holds public
hearing, approves final terms of
development agreement and authorizes
grant application for costs to implement RAP
Grant award,lot sale closing and
construction start in 2023
March 1, 2022 EDA Meeting
Staff will present the 2022 Work Program,
answer questions and request EDA board
approval.
Thank you