Check in on EDA Workplan Item: 167/Highway 47

PURPOSE
The EDA workplan includes a goal related to the 167th Avenue/ Minnesota Highway 47 commercial area (167/47 Node).  Specifically, to consider the creation of a special, EDA funded, grant program to encourage re-investment in this commercial node. 
 
BACKGROUND
As the EDA well knows, the Great Recession was responsible for the failure of many businesses/ developments across the Country in the late 2000's and into the early 2010's.  Retail was hit especially hard. 

One specific area in Ramsey that struggled to remain viable during the Great Recession was the 167/47 Node.  The 167/47 Node experienced high tenant vacancy rates, and turnover of property owners.  The City received a flurry of inquiries and requests from businesses/ property owners located in the 167/47 Node from 2011-2014.  Typically, requests included some form of City financial assistance.

In response to the situation outline above, the City completed an in-depth public/ business/ property owner input process for this node (known as a Statement of Goals--attached).  This document outlined the City's position on a handful of policy items.  One of those items was: a potential grant program (as described in the purpose section of this case).





 

STAFF NOTES:
(anecdotal information)

Zoning Amended.  In 2014, the City did amend the zoning in the 167/47 Node to allow more flexibility for property owners (specifically related to a shooting range).

Reduction in Inquiries.  Since late 2014, inquiries/ requests for City assistance appear to have stopped (outside of Rum River Hills).

Reduction in Vacancy Rates.  Vacancy rates appear to be significantly lower at 167/47 Node now than in 2011.  New major tenants include the Total Defense Gun Range, Hope Fellowship, a daycare, a call center, and a liquor store. 

Sign Removed.  In 2015, the City removed a blighted sign located on a former bank owner property. 

Offer Made by Staff.  In 2014, Staff did offer property owners that had made previous inquires (for City assistance) the opportunity to "pitch" a project that would receive assistance from the EDA.  For example, one property owner was looking at improvements to their parking lot, boulevard, painting, storefront improvements, and connecting to City water.  This project would have cost $20,000-$50,000 depending on a handful of factors.  Staff suggested this property owner ask the EDA to pay for a portion of these costs (i.e. 50%).  This property owner never responded to Staff's suggestion--as they were more motivated to sell than reinvest in their property.

Statement of Goals.  The attached Statement of Goals does indicate the City's willingness to use economic development tools to entice redevelopment of this node.  The only entity (or property owner) that has shown serious interest in working with the City on redevelopment in this area is Rum River Hills Golf Course.  That discussion is ongoing.

TBD

In early 2014, Staff would have advocated for the EDA to consider a matching grant program for the 167/47 Node.  However, given the circumstances outlined in the "observations section" of this case, Staff believes the situation at the 167/47 Node may have changed.

This initiative was outlined in the 2015 EDA workplan.  Therefore, Staff would like direction to further investigate this opportunity or to drop it from the EDA workplan. 

NOTE: if this goal was dropped from the EDA workplan, Staff would maintain the position of encouraging property owners to bring forward inquires/ proposals to the EDA to improve the 167/47 Node.  Staff, and subsequently the EDA, would respond to requests on a case-by-case basis (rather than developing a formal policy/ program).

This initiative was outlined in the 2015 EDA workplan.  Therefore, Staff would like direction to further investigate this opportunity or to drop it from the EDA workplan.