Minutes

New Brighton Economic Development Commission

Regular Meeting – October 10, 2000

7:30 a.m.

Members/Liaisons Present:

Dennis Flahave, Linda Harmon, Ken Johnson, John Kaufhold, Eugene Delaune, Mark Nelson, Steve Larson, Maxine Pierson.

Members/Liaisons Absent:

Rakesh Agarwala, Bob Benke, Carol Frey.

Staff Present:

Matt Fulton, Kevin Locke, Les Proper, David Black.

Others Present:

Corey Johnson (Print Craft).

Call to Order

Chair Ken Johnson called the meeting to order at 7:40 a.m.

Approval of Minutes

The minutes of the September 12, 2000 meeting were presented for approval. All approved.

NW Quadrant Update

Master Development Plan: Black noted that the planners from DSU would not be at the meeting. Progress has been made on the concept plan, but it is too early to present any work at this time. It is expected that there will be sufficient progress before the next EDC meeting.

Acquisitions: Progress has been made on negotiations to purchase the Brighton Bowl and Darling Rendering properties. Darling wants to close by the end of the year. A meeting with the owner of Midwest Asphalt will be scheduled soon. We anticipate proceeding with a resolution for eminent domain.

Delaune commented that he was impressed by the financial plan and the communications plan. He suggested that Ramsey County officials, including Commissioner Jan Wiessner and Parks Director Greg Mack, also be included, perhaps by inviting them to attend the EDC meetings periodically. He asked whether there could be target dates established for the acquisitions. Black indicated that DSU's work would include a phasing plan.

Delaune suggested that TIF and eminent domain can be "hot button" issues, but that careful planning and public communications can preempt the emotional responses.

Brighton Village Update

Black reported that the grocery store portion of McComb's study had been completed, and copies were distributed to those present. McComb will be calling several possible grocery tenants and sending out the study, hoping to generate enough interest for operators to set up a meeting with city officials and Kraus-Anderson.

The successful applicants for Metropolitan Council's SmartGrowth planning are expected to be announced next week. Delaune asked whether planning would be done for just the center or a larger area; Black replied that a larger area would be studied.

Locke indicated that Kraus-Anderson was apparently pursuing any of several options for the center at this point. A full-scale redevelopment could include a hotel or senior housing. Delaune indicated that he would support a long-term, mixed-use approach to the area. Locke noted that Kraus-Anderson had expressed doubts about the possibility of attracting a new grocery store, despite the interest of many city residents. If one were to come, some financial assistance would probably be required. Johnson suggested that letters could be written showing the strong local support for a store.

Delaune asked whether it would be possible to tie any changes at the center to the reconstruction of Silver Lake Road. Proper indicated that the project will start north of Palmer Drive, the north edge of the center. Locke indicated that the City would intend to supplement the planning by Calthorpe (SmartGrowth) with transportation planning.

Proposed Franchise Fee

Ken Johnson introduced Corey Johnson, vice president of Print Craft. Both attended a recent government affairs committee of the Chamber, where the City's proposed franchise fee was discussed and opposed by most attendees.

Fulton explained the franchise fee as payment for the use of the public rights-of-way. The City estimates the total value of right-of-way lands in New Brighton at $38 million, with about $1 million in annual costs for maintenance. As the Council considers the 2001 budget, staff is proposing to realign some of these maintenance costs from the general levy to the users. About 2/3 of the proposed $465,000 would be used to offset costs otherwise paid by property taxes. The maximum levy increase approved by the Council is about 11%, which would be reduced to about 3%. The other 1/3 would pay for extraordinary street improvements, such as decorative lighting and putting wires underground.

Ken Johnson expressed concerns about the negative perception that could be given by a new fee on businesses. Pierson asked how many other cities have a franchise fee. Proper mentioned that Minneapolis, St. Paul, Mounds View, West St. Paul, South St. Paul, and a few others impose it. Harmon found the brochure confusing, and wondered if it was possible to place a cap on the fee, since we don't know the effect of projected utility cost increases. Proper indicated that it was possible to place a cap. Delaune asked whether the fee would be shown as a separate line on utility bills; Proper indicated that it would.

Proper reviewed several tables to show the likely impacts on a variety of properties in the city. Several public meetings will be held to further explain and discuss the proposal. The Council is scheduled to take action on November 14th.

Ken Johnson suggested that this proposal would be very detrimental to recruiting new businesses to New Brighton. Corey Johnson noted that his company competes nationally and internationally, and can't necessarily pass along costs in a competitive environment. Larson suggested that the City might need more time to explain the proposal in a way in which more people could be comfortable.

Ken Johnson proposed a motion opposing the fee. Locke noted that there was no longer a quorum present to take action. Delaune indicated that he was not opposed to the fee. Kaufhold suggested that a committee of citizens and business managers be formed to discuss the proposal more fully. There was general agreement.

Adjournment

The meeting adjourned at 9:15 a.m.