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HomeMy WebLinkAbout12D - 2003 Prior Lake Development Potential Study MEETING DATE: AGENDA #: PREPARED BY: PRESENTER: AGENDA ITEM: DISCUSSION: 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT June 21, 2010 12D Danette M. Parr, Community Development and Natural Resources Director Danette M. Parr CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE EXPENDITURE FOR A COSTIBENEFIT ANALYSIS AND UPDATE OF THE 2003 PRIOR LAKE DEVELOPMENT POTENTIAL STUDY Introduction The purpose of this agenda item is to seek City Council authorization for the following expenditures: . A Cost/Benefit Analysis of three (3) scenarios related to the future alignment of CR 21. . An update of the 2003 Prior Lake Development Potential Study related to retail, residential, and business park. Historv In February of 2010, the consulting engineering firm of Bolton & Menk completed a Main Avenue/CR 21 Intersection Feasibility Study that involved design drawings and cost estimates related to two alternatives for access and connectivity along CR 21. As a result of that discussion, the Economic Development Authority (EDA) asked that a third alternative be evaluated. The third alternative would realign CR 21 southerly starting at Duluth and moving southeasterly to a point where it would align with Pleasant at Main Avenue and gradually continue northeasterly across the wetland at the southeast quadrant of the TH 13/ CR 21 intersection until it aligns once again with the existing CR 21 right of way east of the TH 13 / CR 21 intersection. In order to fully evaluate the three scenarios and how they would ultimately impact the long term future of Downtown, it would appear essential that a Cost/Benefit Analysis be conducted. In addition, an important economic development tool in establishing our efforts related to prospective development throughout the City has been the Prior Lake Development Potential Study. This study was most recently conducted in 2003. Considering the lapse of time since the study was created, a change in projected City demographics, and the downturn in the economy, it would appear prudent that the 2003 Study be updated. It is also noteworthy that if the 2003 Study is updated in conjunction with the Cost/Benefit Analysis, there would be additional financial savings. Current Circumstances Earlier in the evening, the Economic Development Authority (EDA) authorized a resolution approving consulting services for the Downtown R\Council\2010 Agenda Reports\06 2110\CC - EDA !\uthonzation Repo1- EDli ConsLlltant (4) doc ISSUES: FINANCIAL IMPACT: AL TERNATIVES: RECOMMENDED MOTION: Cost/Benefit Analysis and the 2003 Prior Lake Development Potential Study. However, the EDA lacks the authority to approve expenditures involving the general or contingency funds. For that reason, if the Council believes it is appropriate, the Council will need to authorize these expenditures. Conclusion Depending on which consultant is chosen by the EDA, one of the following, expenditure amounts, or a combination thereof will be necessary: . McComb Group- - Cost/Benefit A.nalysis alone: $30,600 - Update of the 2003 Development Potential Study: $20,900 - Combined (both Cost/Benefit Analysis and Update): $37,050 or . Maxfield Research- - Cost/Benefit A.nalysis alone: $14,500 - Update of the 2003 Development Potential Study: $17,500 - Combined (both Cost/Benefit Analysis and 2003 Update): $26,000 While the EDA has the authority to choose the consultant to prepare the Cost/Benefit Analysis and update the 2003 Prior Lake Development Potential Study, it does not have the authority to direct General Fund expenditures to cover these services. The General Fund Economic Development budget includes $15,000 for professional consultant services. In order to do both studies, additional funds will be required. Staff recommends that $15,000 of the expenditure be funded by the General Fund Economic Development budget and the remaining balance drawn from the General Fund Contingency budget. 1. Approve a resolution authorizing funds for consultant services as approved by the EDA to Maxfield Research in an amount not to exceed $26,000. 2. Approve a resolution authorizing funds for consultant services as approved by the EDA to McComb Group in an amount not to exceed $37,050. 3. Table this agenda item for a specific reason and provide staff with direction. 4. Deny this agenda item for a specific reason and provide staff with direction. Staff recommends Alternative 1 or 2, approval of the resolution authorizing he expenditure of funds for consultant services based upon the recommendation of the Economic Development Authority. R\Coll ncil\20 1 0 Agonda Reports\06 21 10\CC EDA Report- EDA Consultant (4).doc 2 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 10-XXX A RESOLUTION AUTHORIZING EXPENDITURE OF FUNDS FOR PROFESSIONAL SERVICES WITH RESPECT TO A COST/BENEFIT ANALYSIS RELATED TO THE COUNTY ROAD 21 ALIGNMENT THROUGH THE DOWNTOWN AREA AND AN UPDATE OF THE 2003 PRIOR LAKE DEVELOPMENT POTENTIAL STUDY WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Motion By: Second By: The 2030 Vision and Strategic f)lan places a high priority upon the redevelopment of the Prior Lake Downtown area; and County Road 21 will require improvement and expansion to carry the projected traffic flows; and Two possible improvement alignments have been identified which include the current configuration and a bridge option; A third alternative which would swing CR 21 south around downtown has been discussed; and Additional cosUbenefit information is needed to equally evaluate all options; and Projects including downtown streetscaping and the Arcadia/CR 21 intersection improvements are affected by the alignment ultimately chosen; and The economic vitality of Prior Lake's Downtown impacts the entire community for decades to come; and The 2003 Prior Lake Development Potential Study is in need of updating if it is to serve as a meaningful economic development tool; and The Prior Lake Economic Development Authority has evaluated proposals and recommends that the CosUBenefit Analysis and 2003 Potential Development Update be undertaken by Maxfield Research, in an amount not to exceed $26,000; and Expenditure of funds for this purpose requires City Council authorization. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. R\Council\2010 Agenda Reports\06 21 10\CC- EDA Expenditure Resolution - Maxfield option.doc 2. Funding for these expenditures is provided as follows: General Fund Economic Development - $15,000 (Account #1 01-46500-313) and General Fund Contingency Budget - $11,000 (Account #101-49999-000) 3. The Mayor and City Manager are authorized to execute the agreements necessary for the implementation of this resolution. PASSED AND ADOPTED THIS 21st DAY OF JUNE, 2010. YES I Myser I Erickson I Hedber!j I Keeney I Millar Myser Erickson Hedber!j Keeney Millar Frank Boyles, City Manager R\Collncil\2010 Agenda Reports\06 21 10\CC- EDA Expenditure ResollJ:iOn - Maxfield opt!ondoc NO 2 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 10-XXX A RESOLUTION AUTHORIZING EXPENDITURE OF FUNDS FOR PROFESSIONAL SERVICES WITH RESPECT TO A COST/BENEFIT ANALYSIS RELATED TO THE COUNTY ROAD 21 ALIGNMENT THROUGH THE DOWNTOWN AREA AND AN UPDATE OF THE 2003 PRIOR LAKE DEVELOPMENT POTENTIAL STUDY WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Motion By: Second By: The 2030 Vision and Strategic Plan places a high priority upon the redevelopment of the Prior Lake Downtown area; and County Road 21 will require improvement and expansion to carry the projected traffic flows; and Two possible improvement alignments have been identified which include the current configuration and a bridge option; A third alternative which would swing CR 21 south around downtown has been discussed; and Additional cost/benefit information is needed to equally evaluate all options; and Projects including downtown streetscaping and the Arcadia/CR 21 intersection improvements are affected by the alignment ultimately chosen; and The economic vitality of Prior Lake's Downtown impacts the entire community for decades to come; and The 2003 Prior Lake Development Potential Study is in need of updating if it is to serve as a meaningful economic development tool; and The Prior Lake Economic Development Authority has evaluated proposals and recommends that the Cost/Benefit Analysis and 2003 Potential Development Update be undertaken by McComb Group, in an amount not to exceed $37,050; and Expenditure of funds for this purpose requires City Council authorization. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. R\Collncil\2010 Agenda Reports\06 21 10\CC- ED.A Expenditure Reso!utlon -McCcmb option.doc 2. Funding for these expenditures is provided as follows: General Fund Economic Development - $15,000 (Account #101-46500-313) and General Fund Contingency Budget - $22,050 (Account #101-49999-000) 3. The Mayor and City Manager are authorized to execute the agreements necessary for the implementation of this resolution. PASSED AND ADOPTED THIS 21st DAY OF JUNE, 2010. YES NO I Myser I Erickson I Hedber!j I Keeney I Millar Myser Erickson Hedber!j Keeney Millar Frank Boyles, City Manager R\Council\2010 Agenda Reportsi06 21 10\CC- ED.A Expenditure Resoiulion -McComb option.doc 2