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PCM 12/16/2015 PLANNING COMMISSION MEETING December 16,2015 Chairperson Kondrick called the Planning Commission Meeting to order at 7:03 p.m. MEMBERS PRESENT: David Kondrick, Leroy Oquist, David Ostwald, Brad Sielaff, and Mike Heintz MEMBERS ABSENT: Todd Olin, and Dean Saba OTHERS PRESENT: Scott Hickok, Community Development Director Approval of Minutes: October 21, 2015 j MOTION by Commissioner Sielaff approving the minutes. Seconded by Commissioner Oquist. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. HRA Project Area Expansion for the Commercial Loan Program. Scott Hickok, Community Development Director, stated this is a request by the HRA to expand the project area to allow them to expand their loan programs into the commercial and industrial specters of the City's population here in Fridley. The HRA is reviewing current loan progams, and the last program to assist small business expansions and improvements lacks the ability right now without this change to be able to fund gap plan financing for businesses. Mr. Hickok stated from staffs business retention visits they learned that there is a need out there for industry if they want to do things like a building expansion or machinery expansion and Code corrections. Industries sometimes could use this gap financing that would really help, and the HRA is interested and willing to do that. It would add value to these industries, and it may keep them here as opposed to trying to expand elsewhere in another community. Mr. Hickok stated the HRA has the ability to provide assistance to businesses and, for consistency, they want to provide loans in the redevelopment project area. To be clear, Statute does not say that the City has to do this expansion. This is truly about the HRA wanting to be consistent with their other programs and where they are able to provide assistance, it is in a redevelopment project area. Mr. Hickok stated adding commercial and industrial properties is an important thing the staff has found through its business retention visits throughout the community. Adding the Columbia Arena site, anticipating development there on the private side, would be another opportunity for the HRA to help fund maybe some smaller businesses, say, in a mixed use building. Mr. Hickok stated Statute requires the Planning Commission to review changes in the redevelopment project area. If the redevelopment project area is going to be expanded or modified, the Planning Commission needs to act on it. That is a bit different than what they were saying earlier in that their redevelopment project area is consistent with where they have loaned money before, and this would allow them to continue to be consistent. Also, not only with their own practice but with the Comprehensive Plan which is the City's guiding plan and is most of what the City does in Planning. �I Planning Commission Meeting December 16, 2015 Page 2 of 5 Mr. Hickok presented a map showing the redevelopment project area. A lot of those small industries in ' the Onaway district, north of Osborne Road, west of University Avenue, and east of the railroad tracks, , are businesses that might really benefit from a program like this. They are adding them in by expanding the project area. Mr. Hickok stated staff recommends that the Planning Commission approve the attached Resolution adjusting the boundary of the redevelopment project area. If approved tonight in their recommendation, the item would go to the HRA on January 7; and public hearing and final action would be set to take place with the City Council on January 25, 2016. Commissioner Heintz asked why would this plan not make the City boundaries be the redevelopment plan area? Mr. Hickok replied, there needs to be a reasonable nexus to the Comprehensive Plan and, in the Comprehensive Plan, staff tries to define where redevelopment is going to take place. The nature of the Comprehensive Plan is such that it is meant to be a guiding tool, not only for the City but the Metropolitan Council. They can look at it and say, okay, here is how much possibly that the City would need to expand sewer treatment if that redevelopment area expands in the way that the City wants to do it. If they included all of the City in that boundary, it would essentially eliminate their ability to predict because they basically are saying anywhere in the City can expand. What staff is trying to do is just get the best guess and line up the lines where they think activity is going to happen. It is very consistent with the Comprehensive Plan; it does not mess up the Metropolitan Council's ability to define where development is going to go. Also, it gives the City that good strong feeling it is being consistent with the Comprehensive Plan and its current modification. Commissioner Sielaff stated the Comprehensive Plan is the one that determines the redevelopment areas, etc. so these boundaries would be based on that? The Metropolitan Council approves that and everything? Mr. Hickok replied, correct. The City defines that and then it goes from the City to the Metropolitan Council. The City is really in control of its local planning, but then it is approved or endorsed by the Metropolitan Council. Sometimes they want to negotiate little differences but, generally, they leave local planning to the local planners and the Commission, the policymakers, and then the plan comes back for official approval by the City. There is where Statute applies. In order for the City to have this project area defined,the City needs to make sure it is consistent with the Comprehensive Plan. Commissioner Sielaff asked whether these are loans the HRA actually provides businesses then? Mr.Hickok replied,they do not do it now but they would. Commissioner Sielaff asked, they would get money from banks and then they pass that through the HRA? Mr. Hickok replied, they would use it from the HRA's general fund. They do have their own money to lend. Like any bank they would treat this like a bank relationship where the interest would accrue, etc. as if they were getting it from a bank. One of the differences though is the HRA can control the interest rate on that. Sometimes where this really helps is that a lender for industry, one, either will not be troubled Planning Commission Meeting December 16, 2015 Page 3 of 5 with these smali gap funding type loans or, second, they see it as a different package in their portfolio of programs so that there are these examples like an industry here in Fridley where the City learned they wanted to add one of their products which is a rubber product that typically they sell as black; but they have a client that really would buy a lot of this product although they want to buy it in white. They would be adding a fourth machine to the ones they have now, and it would simply contain the white product. From the sounds of it that investment that the HRA could make, would open up a new channel of product line for them. Although their banks are interested, it is a loan amount the HRA could handle; but banks are not necessarily as interested in lending the money. Commissioner Oqaist asked whether they are currently doing that now in some areas? Mr. Hickok replied,this is a whole new avenue. Commissioner Oquist stated who is going to administer it? ! Mr. Hickok replied, the HRA has a loan group. They are basically a bank authority that the HRA 'I contracts with and does all of the lending. Right now they do not have the ability to loan because the perimeters for the HRA are set for residential loans only. This is kind of opening up a new window. The banker the HRA already has doing their other loans will take this on and start lending. Commissioner Sielaff asked whether there are written policies to determine what the interest rate is they are going to charge? They can decide each one individually by case? Mr. Hickok replied, no, they do not do that. They will decide though so they again can be consistent. They do not imagine there is going to be a huge number of these. The whole purpose of the HRA doing this is to help Fridley to help business. If it is that prime has shifted and they can get as good of a deal as the bank, they will hear the HRA say, they are not there to compete with the banks but are there to help people in gap financing or help them in a way that makes it desirable for them to come to the HRA. One of the things the HRA recently did in that regarc! is they evaluated the upper end ]imits on residential hoasing loans and decided, they do not need to make it income guided, there are probably a number of folks in Fridley who would probably take advantage of an interest point or two lower and why not make it available to all the City's residential homeowners. They recently adjusted and at least eliminated the upper limit so that it really broadens the pool of folks who can use the HRA's program. Commissioner Oswald asked if this resolution is adopted, is the HRA going to send the information to all the people who are affected? Mr. Hickok replied, yes, they will in a number of different ways through the newsletter, probably direct mailings to the industrial/commercial entities and, as staff goes out and does the business retention visits staff will take information along so they are aware that is something the HRA has availabie, Commissioner Heintz asked whether the citizen portion have limits like this also? Mr. Hickok replied, yes, there are certain guidelines they have for their different residential programs. Some of them are guided by HUD, and so it is just a flow through program where the HRA does not have much ability to adjust based on federal lending guidelines. Others are more designed and tailored to HRA desires, and they can lend accordingly. Planning Commission Meeting December 16, 2015 Page 4 of 5 MOTION by Commissioner Sielaff approving HRA Project Area Expansion for the Commercial Loan Program. Seconded by Commissioner Oquist. ' UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. Receive the Minutes of the November 10, 2015, Environmental Quality and Energy Commission Meeting. MOTION by Commissioner Sielaff to receive the minutes. Seconded by Commissioner Ostwald. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Receive the Minutes of the October 1, 2015, Housing and Redevelopment Authority Commission Meeting. MOTION by Commissioner Oquist to receive the minutes. Seconded by Commissioner Sielaff. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Receive the Minutes of the November 5, 2015, Housing and Redevelopment Commission Meeting. MOTION by Commissioner Ostwald to receive the minutes. Seconded by Commissioner Oquist. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Receive the Minutes of the November 2,2015,Parlcs and Recreation Commission Meeting. MOTION by Commissioner Heintz to receive the minutes. Seconded by Commissioner Oquist. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. OTHER BUSINESS: 6. Approve 2016 Planning Commission meeting dates. MOTION by Commissioner Sielaff approving the 2016 Planning Commission meeting dates. Seconded by Commissioner Oquist. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Hickok stated the City has a lot of great development activity happening. Folks have probably Planning Commission Meeting December 16, 2015 , Page 5 of 5 ' noticed that at 53rd and Central, Starbucks is inches away from opening up. The AT&T cellular store is just about ready, and Leann Chin will be shortly behind. There is also construction underway for a Caribou Coffee, Pancheros Grill, Great Clips, and Einstein Bagels down in front of Cub Foods. The hotel that wants to be on that site is very eager to get going as soon as the snow melts this spring. ADJOURN: MOTION by Commissioner Sielaffto adjourn. Seconded by Commissioner Heintz. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:23 P.M. Respectfully submitted, ���� .�'���'� Denise M. Johnson Recording Secretary CITY OF FRIDLEY SIGN-IN SHEET I � ' PLANNING COMMISSION MEETING � ; ,� , i ; � � � � ______________________________________________________________ i I � I � Name Address/Business I I I �� I .