Red Wing City Council Joint Workshop with Port Authority Board Red Wing Public Library October 3, 2016

Transcription

1 Red Wing City Council Joint Workshop with Port Authority Board Red Wing Public Library Council Members present: Council President Dean Hove; Council Members Peggy Rehder, Kim Beise, Lisa Bayley, Dan Munson, Ralph Rauterkus, and Dustin Schulenberg ( arrived at 5: 17 p. m.) Port Authority Board Members present: Port Authority Board President Scott Adkisson; Commissioners Stephanie Elsen, John Guerber, and Denny Tebbe; Council Liaisons Peggy Rehder and Dan Munson Others present: Kay Kuhlmann, Council Administrator; Shari Chorney, Interim Port Authority Director; Steve Kohn, Assistant Planning Director; Brian Peterson, Planning Director; Dr. Craig Waldron; Neela Mollgaard; Patty Brown; Brent Jaynes; Carol Duff; Evan Brown; Kent Laugen; Megan Tsui; Roseanne Grosso; Suzanne Simonson; Katie Hardyman 1. Call to Order / Introductions Council President Hove called the workshop to order at 5: 05 p. m. Workshop participants introduced themselves. 2. Statement of Purpose Part I The purpose of Part I of the workshop was to discuss the proposed Community Development Department concept and identify any questions/ issues to resolve prior to City Council consideration. Council Administrator Kuhlmann introduced Dr. Craig Waldron and described his background. She reported that the Port Authority Board conducted a workshop on September 30 during which the community development model was discussed. She stated that during this meeting Port Authority Board Chair Adkisson indicated this is a question of roles, relationships, and responsibilities. Dr. Waldron was asked to describe how budgets would work in a Community Development Department model as opposed to separate Port Authority and Planning Departments. Dr. Waldron described his experience as a former Director of Community Development in Roseville, Minnesota, and reviewed an organizational chart. He discussed the budgeting process and the ability to transfer funds between divisions. He described the benefits of a Community Development Department model in terms of direction and speed, stating that there was complete policy alignment with the City Council establishing the policy. He also described how the process was more efficient. Council Member Rauterkus inquired with regard to obtaining input from different boards and establishing adequate checks and balances. Dr. Waldron commented with regard to how policies were developed and strategic planning conducted. He added that input from advisory commissions was incorporated early in the process. Administrator Page 1 of 6

2 Kuhlmann clarified that the Port Authority will not be eliminated if this model is adopted and that the HRA is a separate entity. Council Member Rauterkus asked about the interface with developers in this type of Dr. Waldron indicated that, as the Community Development Director, he was the primary point of contact, adding that an assistant director was also extensively model. involved. Council Member Rehder inquired with regard to the existence of both a Port Authority and an EDA. Dr. Waldron commented with regard to slightly different powers granted to a Port Authority, an EDA, and an HRA. Administrator Kuhlmann asked Dr. Waldron to discuss the budget process. Dr. Waldron stated that the budget worked extremely well in this model, with the Community Development Department budget having access to substantial funding toward economic development efforts. He commented that, as redevelopment was a priority for the City of Roseville, funding and resources could be pulled from other areas as needed. When asked whether the City of Roseville, as part of the seven -county metropolitan area, had opportunities that would not be available in greater Minnesota, Dr. Waldron could provide no examples of this other than perhaps a greater number of available developers. Administrator Kuhlmann asked whether the City of Oakdale utilized the same model. Dr. Waldron reported that he was employed as the City Administrator in Oakdale. He commented that the Community Development Department was composed of planning, housing, and economic development activities but no Port Authority. He discussed the Community Development Director' s ability to gather the necessary resources, stating that he became involved as needed. Council Member Rauterkus asked Dr. Waldron whether he was aware of other cities that have tried this model but were not as successful. Dr. Waldron discussed his knowledge of elected officials who were not forward -thinking or aggressive drivers of economic development and that this situation created challenges for the EDA, HRA, or Port Authority. He stated that this model works well when the City Council is focused on economic development. Council Member Rehder discussed the roles of the HRA and the Port Authority and asked how these entities would function under this model. Dr. Waldron commented that the Community Development Department model would facilitate policy alignment and communication. Council Member Bayley asked about the Port Authority' s budget and role in terms of economic development, inquiring whether the Port Authority budget would comprise the City' s entire economic development budget and whether all decisions related to economic development would be approved by the Port Authority. Page 2 of 6

3 Administrator Kuhlmann commented that she and Finance Director Hallock have discussed eliminating a Planning budget and creating a Community Development budget. This budget would include funding for staffing. One- third of the cost for the Community Development Director would be transferred from the Port Authority budget, but the rest of the Port Authority levy funding would be available for projects. An additional third of the cost of the Community Development Director would be transferred in from the Building Inspection Department, and the remaining cost of the Community Development Director would come from the general fund. Other staffing costs, including planning staff, the Business Development Director, the customer service position, and the Economic Development Coordinator position would be transferred from the general fund into the Community Development Department budget. Administrator Kuhlmann discussed how this is handled by the City of Winona. Council Member Bayley asked whether everything related to economic development would go through the Port Authority. Administrator Kuhlmann commented that economic development activities would be coordinated by the Community Development Department. She added that, depending on the project, funds could be drawn from multiple budgets. Port Authority President Adkisson requested information with regard to Community Development Department staffing in Roseville. Dr. Waldron provided additional information in this regard, including related to his role. Council Member Rauterkus asked about land ownership. Dr. Waldron discussed benefits of gaining control of land under a public entity, at least temporarily. the Council Member Rehder asked about how the HRA could potentially be incorporated into this model in terms of redevelopment. Dr. Waldron discussed the importance of policy alignment, maintaining good relationships, and utilizing powers as needed. The differing roles of HRA organizations and the role of the Red Wing HRA were discussed. Commissioner Tebbe commented that policy alignment appears to be a primary focus and referenced language delineating the role of the Port Authority. Dr. Waldron commented with regard to the importance of a shared vision. Administrator Kuhlmann agreed that the Port Authority is the economic development agency for the City, commenting that these efforts would be strengthened by the proposed organizational model. Roles in terms of policy development were discussed. Port Authority President Adkisson recommended ensuring adequate funding toward economic development projects as opposed to mere budget fund transfers. Council Members commented that one- third of the Port Authority levy would be allocated toward administrative expenses, with the remaining two- thirds allocated toward economic development. Dr. Waldron commented with regard to efficient utilization of resources. Page 3 of 6

4 Port Authority President Adkisson reported that the Port Authority Board voted to support moving the process forward, adding that there are still questions to be answered and concerns to be addressed. Council Member Bayley asked what remaining questions still need to be answered. Port Authority President Adkisson asked about the budget and staffing. It was clarified that Port Authority staffing would be budgeted from the Community Development Department budget. Commissioner Guerber requested clarification of how the role of the Port Authority would change. Administrator Kuhlmann suggested a review of the Port Authority Enabling Resolution, development of a Community Development Director job description and a detailed budget for the Community Development Department, and a side- by- side comparison. Commissioner Guerber asked whether a revised Enabling Resolution has been drafted, and it was clarified that this has not been done. Council Member Bayley commented that the Port Authority Board would no longer need to spend time on administrative issues and could focus on economic development activities, adding that the Community Development Director would help drive the process. She asked what would happen in the event that the Community Development Director and the Port Authority Board disagree on goals, priorities, or the Port Authority budget. Administrator Kuhlmann commented that the City Council has the ultimate authority over the budget, adding that policy alignment will help establish Port Authority goals. Council Member Bayley stated that the City' s Strategic Plan should also drive these goals. Port Authority President Adkisson commented with regard to Port Authority Board discussion related to aligning the Port Authority' s Strategic Plan with the City' s Strategic Plan. He recommended that roles, responsibilities, and relationships be defined up front. Commissioner Elsen asked how the Port Authority Board and the Community Development Director would work together to establish goals and a work plan for the upcoming year. Administrator Kuhlmann commented with regard to how the Strategic Plan is utilized to establish priorities and identify responsibilities and resources, adding the staff liaison would help facilitate the process with the Port Authority Board. Council Member Rehder commented with regard to Port Authority Board discussion related to community engagement and public input prior to moving forward. Administrator Kuhlmann reviewed next steps, including answering the questions that have been identified and discussing this information during the Port Authority Board meeting in November. In the meantime, a budget will be developed for discussion by the City Council. She added that a Public Hearing could be scheduled in November or December. In addition, community organizations could be asked to provide input. Commissioner Guerber asked about a potential call- in show on the local radio station, stating that this could provide an opportunity to provide information and solicit public input related to the role of the Port Authority. Roseanne Grosso commented with regard to this suggestion. Administrator Kuhlmann and Council Members expressed agreement with this suggestion. Page 4 of 6

5 Council Member Bayley stated that the side- by- side comparison would be a useful tool. Utilization of the City' s website to conduct a survey was discussed. Commissioner Guerber commented that more public interaction might be generated during a call- in radio show format. Council President Hove expressed agreement with the suggestion for scheduling Public Hearings to foster public discussion. Council Member Bayley commented with regard to the importance of communicating Public Hearing notices. Workshop participants thanked Dr. Waldron for his assistance. The workshop adjourned for a brief break at 6: 00 p. m. 3. Statement of Purpose Part II The purpose of Part II of the workshop was to discuss the proposed agreement between the City of Red Wing and the Saint Paul Port Authority to market the City owned land at Highways 61 and 19. Interim Port Authority Director Chorney provided background information with regard to the proposed agreement with the Saint Paul Port Authority. She introduced representatives from the Saint Paul Port Authority, including Monte Hilleman, Senior Vice President of Real Estate Redevelopment, and Keith Mensah, Development Services Associate. She referenced work on the criteria that will be used to market this property. Mr. Hilleman reviewed his background and experience and discussed services provided by the Saint Paul Port Authority. He discussed why criteria are important in terms of job creation and retention, tax base, and environmental performance. He stated that these criteria will be used to communicate clearly and set expectations for the marketplace. He added that the criteria help support the negotiation process and facilitate a more efficient use of time by laying the ground rules. Draft criteria were reviewed and rationale discussed in more detail: Building to land coverage. Job density. Minimum construction cost. Wages. Sustainability criteria. Multi -story manufacturing facilities were discussed. Building longevity was discussed. It was clarified that wage criteria are considered to be the recommended minimum wages. Mr. Hilleman commented that above -market requirements generally lead to a market expectation for incentivized land prices, with the trade- off being a long- term revenue stream. He provided examples of this concept in other communities. Mr. Hilleman discussed expectations of the marketplace in terms of demolition and removal of the current building, infrastructure, access roads, environmental analysis, Page 5 of 6

6 TIF analysis, and securing entitlements, such as zoning and easements. reviewed the next steps in terms of marketing. Mr. Hilleman Council Member Bayley inquired with regard to the proposed community solar garden project. Mr. Hilleman referenced the historic plat and the focus on economic development, stating his recommendation against placing a community solar garden on this developable land. Council Member Bayley commented with regard to the process that has transpired thus far. Mr. Hilleman discussed the possibility of a roof -top community solar garden project. Council Member Bayley inquired regarding the number of acres needed for the community solar garden. It was stated that five or six acres would be required. Potential locations for the community garden were discussed. Further discussion of this project was recommended. Mr. Hilleman suggested compiling a spreadsheet to help illustrate potential economic impacts. When asked whether the property size will affect the salability, Mr. Hilleman discussed the likelihood of dividing the parcel into smaller lots. Director Peterson commented with regard to infrastructure considerations, and Mr. Hilleman provided additional information in this regard. The platting process was discussed. Demolition costs for the existing building were discussed. importance of conducting an environmental analysis. He offered to gather more information with regard to potential contractors that could provide a preliminary cost estimate. Potential recapture of demolition costs through the TIF process was discussed. Mr. Hilleman reviewed the Mr. Hilleman reviewed the benefits of removing barriers to development. 4. Adjournment The workshop adjourned at 6: 50 p. m. Dean Hove, Council President ATTEST: Kathy Seymour Johnson, City Clerk Page 6 of 6