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2013-02-04 CC Workshop Council Workshop Agenda Monday, February 4, 2013 City Council Chambers 6:00 p.m. M:\Public Data\City Council\Council Agendas\2013 Agendas\020413 Council Workshop Agenda.doc Meeting Date: February 4, 2013 1. Call to Order 2. Priorities for Wright County (memo attached) 3. Economic Development/Saleable City Owned Parcels (presentation and memo attached) 4. Recycling Program (memo attached) 5. City Communications (verbal update) A. Website Update B. Newsletter (options) C. Council Meetings (recording, webcasts, televising) 6. Items to be Discussed at Future Workshops or Council Meetings A. Code Enforcement Policy B. 2013 Infrastructure Projects 1). 2013 Overlay Improvements 2). 70th Street Seal Coat (joint project with Otsego) 3). WWTP Facility Plan 4). CSAH 18 Trail 5). Cedar Creek Water Extension 6). County Ditch #9 Improvements 7). City Building Communication Connections C. I-94 Improvements 1). 6 – Lane Expansion 2). Albertville Interchange Improvements (Phase II) 7. Adjournment (workshop to potentially reconvene following regular meeting) Agenda Page 1 Memorandum To: Honorable Mayor and City Council Members From: Adam Nafstad, City Administrator Cc: City Clerk Olson RE: City Requests of Wright County January 28, 2013 Wright County Commissioner Potter has asked the City to develop a list of items that the Council believes the County Board can assist with. Below is a suggested list of priorities or issues to present to Commissioner Potter and for him to share with the County Board: 1. Appreciation of past support and partnerships with various projects, i.e. CSAH 19 and WB I-94 C-D Road. 2. Sheriff’s Department/Emergency Management a. Continued support of contract services provided to Cities b. Continued and added support of Emergency Management Division to provide added support to Wright County Cities. 3. Transportation a. Support and Funding for EB I-94 C-D Road b. Support and Funding for CSAH 19 North c. Continued Support and Involvement with I-94 Coalition d. Review and Revise County Funding Policy Agenda Page 2 PLANNING REPORT (Workshop Discussion Outline) TO: Adam Nafstad FROM: Alan Brixius DATE: January 29, 2013 RE: Albertville – Economic Development Plan FILE NO: 163.05 – 12.09 BACKGROUND The Albertville Vision Study identified economic development as a community priority. The study recommended a proactive approach to economic development to accomplish the following objectives: • Stimulate commercial and industrial development within the City. • Market and sell City-owned properties to reduce City land supply, land holding costs, and community infrastructure debt. • Expand commercial and industrial tax base to reduce tax burden for City residents and businesses. • Grow local employment opportunities. This report outlines various steps that City staff will take to put the City into the position to market and to quickly react to potential development interests. CONTACT GROUP The contact group will be equipped to answer development questions most frequently asked by a prospective business. We would recommend the group to represent the City’s interests in marketing the community to prospective businesses and industrial consist of the following: 1. City Council Member • Community Background • Community Police • Politics 2. City Administrator/Engineer • Finances Agenda Page 3 2 • Utility Availability • Transportation 3. City Planner • Zoning/Subdivision • Site Design • Development Process/Schedule BACKGROUND INFORMATION City staff will assemble the following information to present to prospective businesses and industries: 1. Community Strengths • Location/Proximity to Metro Area • Access to I-94 • Utility Availability • Work Forces • Growing Area Population/Markets • School District 2. Inventory of Available Lots • City Owned • Private Ownership • Lot Area/Size • Lot Costs 3. Utility Availability • Sanitary Sewer Size and Location • Municipal Water • Storm Sewer • Utility Costs SAC $4,600 Res. Equivalent Unit WAC $2,951 Res. Equivalent Unit ($950 City / $2,001 Joint Powers) Water Trunk Charge $1,925 Per Acre Sewer Trunk Charge $2,055 Per Acre Storm Water Charge: Single Family $500 Per Unit Multiple Family $400 Per Unit Other Properties $1,500 Per Acre Agenda Page 4 3 4. Zoning/Development Review Process • Application Forms/Checklists • Development Application Schedule • Development Application Fees • Sign Standards • Zoning District and Performance Standards • Subdivision Park Dedication Fee: Residential $3,300 Per Unit Commercial $8,200 Per Acre/Subdivided Industrial $2,500 Per Acre/Subdivided 5. Finance • Tax Rates • Financial Incentives (Tax Increment Financing, Tax Abatement, State Programs) LOT INVENTORY The City has the following City-owned lots: Northwest Albertville Commercial Lots Northwest Albertville City lots are located along 67th Street. These lots are zoned B-2A, Special Business District. These lots have access to sewer and water within 67th Street. Parcel ID: 1010910000020 2013 Gross/Net Taxable Value: $1,092,200 Ownership: City of Albertville Lot Area: 13.6 Gross Acres (572,240 square feet) Zoning: B-2A, Special Business District Parcel ID: 101091000030 2013 Gross/Net Taxable Value: $5,300 (wetland) Ownership: City of Albertville Lot Area: 5.3 Gross Acres (231,000 square feet) Zoning: B-2A, Special Business District Parcel ID: 101094001020 2013 Gross/Net Taxable Value: $302,700 Ownership: City of Albertville Lot Area: 3.9 Gross Acres (171,845 square feet) Zoning: B-2A, Special Business District Parcel ID: 101091000040 2013 Gross/Net Taxable Value: $1,200 (wetland) Ownership: City of Albertville Lot Area: 1.2 Gross Acres (52,495 square feet) Zoning: B-2A, Special Business District Agenda Page 5 67TH 94 94 -0 230 460 690 920115 Feet 1 2 3 4 Northwest Albertville City Owned Parcels Agenda Page 6 5 Barthel Industrial Park In 2007, the City of Albertville accepted a land donation from Scherer Bros. Lumber and platted six lots along 52nd Street. This area is zoned industrial. The industrial park has access to I-94 via Barthel Industrial Drive. The lots have utility access from 52nd Street. Parcel ID: 101135001020 2013 Gross/Net Taxable Value: $171,100 Ownership: City of Albertville Lot Area: 2.2 Gross Acres (95,066 square feet) Zoning: I-1, Limited Industrial Parcel ID: 101135000010 2013 Gross/Net Taxable Value: $3,200 (wetland/ponds) Ownership: City of Albertville Lot Area: 3.15 Gross Acres (137,121 square feet) Zoning: I-1, Limited Industrial Parcel ID: 101135002010 2013 Gross/Net Taxable Value: $251,300 Ownership: City of Albertville Lot Area: 3.2 Gross Acres (139,609 square feet) Zoning: I-1, Limited Industrial Parcel ID: 101135003010 2013 Gross/Net Taxable Value: $138,800 Ownership: City of Albertville Lot Area: 1.8 Gross Acres (77,123 square feet) Zoning: I-1, Limited Industrial Parcel ID: 101135000020 2013 Gross/Net Taxable Value: $5,500 (wetland) Ownership: City of Albertville Lot Area: 5.5 Gross Acres (239,410 square feet) Zoning: I-1, Limited Industrial Parcel ID: 101135004010 2013 Gross/Net Taxable Value: $110,600 Ownership: City of Albertville Lot Area: 1.4 Gross Acres (61,433 square feet) Zoning: I-1, Limited Industrial Agenda Page 7 52ND MARLOWE53RDBARTHEL INDUSTRIAL -0 175 350 525 70087.5 Feet 123 456 Barthel Industrial Park City Owned Parcels Agenda Page 8 7 Prairie Run The City has acquired 10 detached townhome lots in the Prairie Run subdivision. These undeveloped lots carry a special assessment for utility improvements. County records indicate that each lot carries a special assessment of approximately $20,000. Prairie Run Single Family Lots 101103002080 10679 51st Street NE 0.24 See Plat PUD Yes 101103002090 10680 51st Street NE 0.24 See Plat PUD Yes 101103002100 10684 51st Street NE 0.24 See Plat PUD Yes 101103002060 10687 51st Street NE 0.24 See Plat PUD Yes 101103002110 10688 51st Street NE 0.64 See Plat PUD Yes 101103002050 10691 51st Street NE 0.98 See Plat PUD Yes 101103002120 10692 51st Street NE 0.77 See Plat PUD Yes 101103002040 10695 51st Street NE 0.58 See Plat PUD Yes 101103002030 10699 51st Street NE 0.65 See Plat PUD Yes 101103002130 10700 51st Street NE 1.01 See Plat PUD Yes SALE PRICE The lot inventory provides the City Council with the taxable value of each of the City- owned properties. The City has also initiated an appraisal of one of the City-owned lots along 67th Street in Northwest Albertville to determine the market value of these properties for sale. The following table illustrates listed vacant commercial and industrial lots from the Multiple Listing Service (MLS) in Albertville and surrounding communities. Albertville has three commercial lot identified. One of the lots abuts the City-owned lots along 67th Avenue. The list price of this lot is $388,500 for a 2.52 acre site. This is $3.53 per square foot. The other Albertville commercial sites have better visibility and accessibility to I-94, resulting in higher asking prices. Examination of the surrounding communities reveals sale prices that hover around the $5.00 per square foot price. Higher prices are being sought for lots having premium locations near major interstates, highways, or big box retailers. Lower prices are generally reflective of sites that do not offer strong market advantages (i.e., poor visibility, low traffic volumes, poor accessibility). The MLS offered one industrial site for comparison. The 3.17 acre industrial site located in Monticello has an asking price of $199,900 or $1.45 per square foot. This must be considered in establishing a sale price for Albertville’s industrial sites. Agenda Page 9 51S T JA S O N 53RD KASSELKALENDAKAHL E R JASO N -0 120 240 360 48060 Feet Prairie Run Single Family Lots Agenda Page 10 9 Address Zoning Area (Acres) Sale Price Price Per Sq. Foot Comments Albertville 67th Street NE C 2.52 $388,500 $3.53 C.R. 37 / C.R. 19 C 0.69 $395,000 $13.14 C.R. 37 / MacKenzie C 5.00 $1,742,400 $8.00 Otsego 15849 90th Street C 12.93 $5,977,777 $10.61 Church 8116 River Road C 19.51 $4,674,205 $5.53 C.R. 39 & Hwy 42 C 3.40 $747,777 $5.05 Distressed Monticello Oakwood Drive C 1.37 $250,000 $4.19 1511 East Broadway C 1.80 $719,900 $9.18 Hart Boulevard C 1.00 $207,936 $4.77 7th Street I 3.17 $199,900 $1.45 Industrial Buffalo Crossroad Campus Drive C 8.00 $1,750,000 $5.02 2nd Avenue NE C 0.16 $52,000 $7.46 Hanover 29940 N. 109th Avenue C/M 7.17 $380,000 $1.22 Elk River 17323 Highway 10 C 1.37 $165,000 $2.76 17175 Yale St. NW C 1.00 $299,900 $6.99 Highway 169 Highway 10 C 1.50 $157,777 $3.14 Jackson Ave. NW C 1.76 $94,777 $1.24 Neighborhood STRATEGIES The previous sections of this report provide inventory information that may assist in defining the City’s economic strategies. The following next step strategies are offered for City Council consideration: Marketing 1. Developers Meeting. Staff would meet with the following area commercial and industrial development contractors to identify opportunities for commercial development in Albertville Through these meetings, the City will also solicit opinions as to amenities, programs, and incentives that will be sought by Agenda Page 11 10 prospective businesses wishing to locate in Albertville. Our list of development contractors would include: • Darkenwald • Shingobee • Kinghorn • Ebert Construction • Bauer Design/Build These are companies that have done work in Albertville and Wright County and may have prospective businesses that have development interests. We would look to the Council to add to the developer list. 2. Meeting With Local Existing Industries. City staff will create a directory of local industries and arrange a meeting with industrial park industries to find out their growth needs and to determine if there is any future expansion plans. The City- owned industrial lots lend themselves to the expansion of the neighboring businesses. 3. Identify Sale Price. Identify workable sale prices for the land to be regionally competitive and yet to cover City debt service. 4. Financial Incentives. Work with bond consultants to identify workable financing options and research grant opportunities through the Department of Employment and Economic Development. • Tax Increment Financing • Tax Abatement • State Programs • Deferral of SAC/WAC Assessments 5. Define Economic Development Priorities. • Reduce City land holdings and debt • Grow existing in-place industries • Provide subsidies for the creation of new living wage jobs • Promote building intensive industries to balance private investment with City investment • Require significant building/lot coverage with public assistance • Require masonry construction with public assistance Agenda Page 12 11 • Promote economic development, building and site design that is consistent with the goals and policies of the Albertville Vision Study and Land Use Plan • Priority will be given to projects that limit the City’s financial risk • Priority will be given to projects with immediate construction schedules • Priority will be given to projects which request business subsidies for shorter periods of time or creative revenues that immediately finance City debt Agenda Page 13 Memorandum To: Honorable Mayor and City Council Members From: Adam Nafstad, City Administrator Cc: City Clerk Olson RE: Recycling Program (February 4th Workshop) January 28, 2013 The Council has asked that the City’s recycling program be discussed at the February workshop. The City is currently under contract with Allied Waste Services for the city’s curbside/single-sort recycling program. In late 2010, when the Council directed staff to draft a contract with Allied, the motion included direction for grant funds be dedicated to “recycling expenses or possibly a document shredding day”. It is believed that the intent of the motion was to use the funds to give back to the community and promote the recycling program. Programs the Council may wish to pursue include: • Document shredding • Customer rewards program • Service to businesses • Large item pick-up day Agenda Page 14