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PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
AGENDA
Monday, June 11, 2012
4:00 p.m.
Reports included with this agenda can be found in the Document Center at www.cityofpriorlake.com
Please follow this file path: City of Prior LakelEconomic Development Authority120121June 11, 2012
1. CALL TO ORDERIINTRODUCTION
2. APPROVAL OF AGENDA
3. APPROVAL OF MEETING MINUTES
A. May 14, 2012
4. PUBLIC HEARINGS
A. No public hearing is scheduled.
5. OLD BUSINESS
A. EDA Business Plan — Draft #3
B. Technology Village Business Plan — Draft #1
C. Economic Development Policy for Deerfield antl Welcome Industrial Parks — Draft #1
6. NEW BUSINESS
A. EDAC Report and Subcommittee Reports:
(1) EDAC
(2) Broadband Fiber Network
(3) Technology Village Incubator
B. Downtown Redevelopment Acquisition Opportunities
C. 2011 Annual Financial Report
D. 2012 First Quarter Financial Report
E. 2013 Budget Discussion — EDA Tax Levy
7. OTHER BUSINESS
A. Draft July 16, 2012 Agenda
8. ADJOURNMENT: 6:00 p.m.
Phone 952.447.9800 / Faac 952.447.4245 / www.cityofpriorlake.com
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Economic Development Authority Meeting Minutes
May 14, 2012
1. CALL TO ORDER
President Hedberg called the meeting to order at 4:00 p.m. Present were Hedberg, Morris, Choudek, Chromy,
Executive Director Boyles, and Community Development Specialist McCabe. Absent were Myser and Commu-
nity & Economic Development Director Rogness.
2. APPROVAL OF AGENDA
MOTION BY MORRIS, SECONDED BY CHOUDEK TO APPROVE THE AGENDA AS PRESENTED.
VOTE: Ayes by Hedberg, Morris, and Choudek; Abstaining Chromy. The motion carried.
3. APPROVAL OF MEETING MINUTES
MOTION BY MORRIS, SECONDED BY CHOUDEK TO APPROVE THE MEETING MINUTES OF APRIL 9,
2012.
VOTE: Ayes by Hedberg, Morris, and Choudek; Abstaining Chromy. The motion carried.
4. PUBLIC HEARING
No public hearing was scheduled.
5. OLD BUSINESS
A. EDA Business Plan — Draft #2.
McCabe: presented overview of Draft #2 EDA Business Plan and highlighted revisions from Draft #1 EDA
Business Plan based on comments received from the EDA at the April 9, 2012 meeting.
Hedberg: Prior Lake is known as a recreational and entertainment community and the city has many re-
gional amenities related to recreation and entertainment such as the Renaissance Festival, golf courses,
parks, music festivals, Lakefront Days, etc. The EDA Business Plan should identify opportunities to attract
business related to recreation and entertainment.
Choudek: Business Plan should identify how the EDA could incorporate the EDA's technology initiatives to
market the community and build from Prior Lake's "Live, Work, and Play" image.
Boyles: Business Plan should embrace the 2030 Vision and Strategic Plan as a community strength.
Chromy: Plan should address retail development as a job creator and recreational activity.
Hedberg: Enhance Measuring Success Matrix language with;
1) Make sure we are providing services and shopping people want,
2) Bring jobs to Prior Lake that the citizens find desirable.
3) Broaden the tax base.
Choudek: EDA Business Plan may want to atldress working with the EDAC to adopt a"Shop where you
live" campaign, similar to, or in partnership with the Chamber of Commerce.
Phone 952.447.9800 / Fax 952.447.4245 / �vww.cityofpriorlake.com
Hedberg: addressed the Business Plan's Achievement Goal section as it relates to the job growth projec-
tions; Mr. Hedberg indicated the job growth projections seem low.
EDA Members: held discussion about the source of the job growth projection information from the Maxfield
Research Commercial and Industrial Demand Analysis. Members chose to use the Maxfield projections as
a baseline job creation number and identify enhanced EDA job creation goals which would increase em-
ployment opportunities beyond the projections used by Maxfield Research. The EDA goals should assume
and identify the necessary policy changes and increased public investment to achieve the enhanced goals.
Hedberg: recommentled staff evaluates the Employment section to include more information related to
employment by industry. The estimated employment numbers provided for the SMSC business ventures
was good information to include but a more detailed employment breakdown by industry classification
would be beneficial. Possibly use the North American Industry Classification System (NAICS) to provide
the additional detail.
Choudek: Business plan should address and incorporate all goals of the EDA, including; broadband fiber
network, Technology Village incubator, data center, rehabilitation activities, etc. as mutually supportive initi-
atives.
EDA Members: discussed the Looking Ahead section which identifies timeframe goals. Members felt
Items 1 and 2 in the 2021-2025 timeframe should be moved to the 2014-2020 timeframe. Goals 3, 4, and 5
in the 2021-2025 timeframe should be combined with the 2026-2030 goals; a new 2021-2030 timeframe
should be created and include the final six goals.
EDA Members: discussed including more information in the Economic Landscape section. This should be
where we tell our story; more emphasis on recreation and entertainment community in this section. Identify
regional parks, tournaments (softball, fishing), golfing, and other recreational activities and amenities.
Hedberg: Prior Lake has historically been the hub of activity in northern Scott County. The Business Plan
should incorporate the history of Prior Lake and embrace the hub concept for regional recreational and en-
tertainment activity.
EDA members directed staff make the suggested modifications to the Business Plan and present Draft #3
to the EDA on June 11, 2012.
B. Modification of the TIF Plan for District 1-1.
McCabe: presented staff's report on the modification of the TIF plan for District 1-1 and providetl an over-
view of the report attachment which identifies potential parcels for acquisition, demolition, site cleanup, or
public infrastructure improvements. Suggested parcels were identified by staff based on previous EDA and
City Council discussions of possible projects,
EDA Members: held discussion about specific properties listed on the report attachment and identified two
an atlditional parcels to be inclutled for potential acquisition, demolition, or site cleanup. The two additional
parcels are the former gas station located at 16176 Main Ave. SE and the McKinley property located at
16961 Mushtown Rd. SE.
Hedberg: indicated the TIF district modification plan should identify property acquisition and public infra-
structure as priorities, as it is generally difficult for the EDA to fund this type of project and other sources of
funding may be identified to assist with property demolition and site cleanup.
DRAFT 5/14/12 EDA meeting minutes
2
EDA Members: directed staff to proceetl with a TIF modification plan with maximum flexibility
MOTION BY CHROMY, SECONDED BY MORRIS TO RECOMMEND STAFF PROCEED WITH A MODI-
FICATION OF THE TIF PLAN FOR DISTRICT 1-1 TO BE SUBMITTED TO THE CITY COUNCIL FOR FI-
NAL APPROVAL.
VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried.
C. Final Update for Venture Fair.
McCabe: provided an update of the marketing efforts and current status of registered attendants for the
Prior Lake Business Venture Fair scheduled for Wednesday, May 23, 2012 at The Wilds. As of the meet-
ing date, the EDA has received four registrations for the event.
EDA Members: felt that a minimum of twenty potential Angel Investor's would be necessary to proceed
with the event and the scheduled event for May 23, 2012 should be postponed.
Choudek: suggested the EDA review the option of holding the Venture Fair in connection with another
community event, such as the fall EDAC Meet-N-Greet event.
EDA Members: directed staff to postpone the event and inform presenters, registered attendants, and The
Wilds.
6. NEW BUSINESS
A. EDAC Report and Subcommittee Reports:
(1) EDAC.
McCabe: presented a summary of the April 26, 2012 EDAC meeting provided an overview of the Busi-
ness Friendly Subcommittee, which is a subcommittee formed by the EDAC for the purpose of evaluat-
ing and comparing the City of Prior Lake's zoning ordinances, city practices, development process, and
design standards compared to peer communities in the region.
Hedberg: requested the EDAC appoint a liaison to the EDA in an effort to provide better communica-
tion between the two organizations.
City Staff will request the EDAC appoint a liaison to the EDA.
(2) Broadband Fiber Network.
McCabe: provided an update of the EDA Fiber Broadband Network subcommittee activity; the sub-
committee will be ready to present its report to the EDA near the end of June 2012.
Morris: presented a research paper written by Christopher Mitchell, who is a member of the EDA Fiber
Broadband Network subcommittee, titled; Broadband at the Speed of Light — How Three Communities
Built next-Generation Networks.
EDA Members: felt it may be valuable to review this paper prior to the subcommittee's report presenta-
tion. Staff agreed to print and distribute hard copies of the paper to EDA members.
(3) Technology Village Incubator.
McCabe: provided an update of the EDA Technology Village subcommittee activity and gave a brief
summary of the three phased program development being proposed, with program implementation
within City Hall being Phase I of development. The subcommittee will be ready to present its Business
Plan to the EDA at the regular June 11, 2012 meeting.
DRAFT 5/14/12 EDA meeting minutes
3
B. Business Assistance Matrix and Target Area.
McCabe: gave an overview of the staff report antl the Prior Lake Business Assistance Matric completed by
Community and Economic Development Director Rogness. The Business Assistance Matrix is a compre-
hensive list of available funding sources for economic development activities in Prior Lake that shows po-
tential financial resources and those that have approved or pending policies.
McCabe: stated that as the EDA continues to establish its business plan for economic development, it is
important to have a"tool box" of funding assistance programs. The matrix will help evaluate funding re-
sources, what they can be used for, and identify the need for additional policies.
EDA Members: reviewed and commented on the Business Assistance Matrix and identified the Economic
Development Target Area of Deerfield Industrial Park (vacant lot development) and Welcome Avenue In-
dustrial Park (redevelopment of existing and underutilized parcels) as the top priority for developing a new
policy to identify available economic development assistance programs.
Hedberg: stated there is a need to build the City's business assistance tools and a more aggressive set of
business development goals is needed.
EDA Members:
MOTION BY MORRIS, SECONDED BY CHOUDEK TO DIRECT STAFF TO BEGIN WORKING ON A
SPECIFIC BUSINESS POLICY FOR THE ECONOMIC DEVELOPMENT TARGET AREA OF DEERFIELD
INDUSTRIAL PARK AND WELCOME AVENUE INDUSTRIAL PARK.
VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried.
C. Future Guests at EDA Meetings.
McCabe: Based on previous discussions with EDA members, City staff asked the EDA if inembers would
fintl it valuable to invite guest speakers to future EDA meetings. The ability of the EDA to hear from area
development and business development experts may bring insight on how the City of Prior Lake and its
economic development efforts are viewed from outside the community.
McCabe: As the EDA continues to evaluate key strategies for economic development in Prior Lake, the
EDA may choose to develop a list of guests to attend future meetings, such as; Twin Cities' commer-
cial/industrial brokers and developers, business CEOs that live in Prior Lake, Greater MSP Director of
Business Investment, or an employment demographer/researcher.
EDA Members: felt inviting guests to regular meetings of the EDA on a quarterly basis would be beneficial.
In addition to the list of possible guests provided in the staff report, the EDA suggested meeting with a Twin
Cities data center developer, or a real estate and business developer with expertise on technology, retail,
and light industrial development,
D. Extension of Professional Services Agreement with Lookout Point Communications.
McCabe: provided an overview of the Professional Services Agreement entered into between the City of
Prior Lake and Lookout Point Communications for a Feasibility Study for a Community Fiber Network. The
consultant, Lookout Point Communications, was hired at a cost of $80,000 with a completion date of May
31, 2012.
McCabe: The subcommittee has been meeting with the consultant for two hours every two weeks since
January 27, 2012. In order to have adequate time to review the report and schedule a two hour meeting to
present the report to the EDA, a 1-month extension to the contract was requested by the subcommittee.
DRAFT 5/14/12 EDA meeting minutes
4
Mr. Eric Lampland with Lookout Point Communications has proposed this extension with no additional cost
to the City of Prior Lake.
EDA Members: instructed City staff to coordinate a two-hour meeting date near the end of June, 2012 via
email.
MOTION BY CHOUDEK, SECONDED BY CHROMY TO APPROVE AN EXTENSION OF THE JANUARY
18, 2012 PROFESSIONAL SERVICES AGREEMENT WITH LOOKOUT POINT COMMUNICATIONS
FROM AN ENDING DATE OF MAY 31, 2012 TO JUNE 30, 2012 AND IDENTIFY A DATE/TIME TO RE-
CEIVE THE REPORT.
VOTE: Ayes by Hedberg, Morris, Choudek antl Chromy. The motion carried.
7. OTHER BUSINESS
A. Draft June 11, 2012 Agenda
Draft June 11, 2012 Agenda was reviewed by the commissioners.
B. Revised Economic Development Authority Meeting Schedule.
Boyles: With City Attorney Pace moving on, the City of Prior Lake solicited proposals for civil and legal
services. The City Council will receive a recommendation for legal counsel at the May 21 meeting. Due to
meeting date conflicts with the recommended legal counsel, the City Council, Economic Development Au-
thority, and Planning Commission will be adjusting their meeting dates. Beginning in July 2012, the EDA
will change its meeting time from the second Monday of each month to the third Monday of each month.
EDA Members: agreed with the proposed meeting time change,
MOTION BY CHROMY, SECONDED BY MORRIS TO APPROVE THE REVISED ECONOMIC DEVEL-
OPMENT AUTHORITY MEETING SCHEDULE.
VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried.
ADJOURNMENT
MOTION BY CHOUDEK, SECOND BY CHROMY TO ADJOURN THE MEETING. With all in favor, the meeting
adjourned at 6:15 p.m.
Frank Boyles, Executive Director
DRAFT 5114/12 EDA meeting minutes
5
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ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2012
AGENDA #: 5.A
PREPARED BY: Dan Rogness, Community 8� Economic Development Director
AGENDA ITEM: EDA BUSINESS PLAN — DRAFT #3
DISCUSSION: Introduction
Based on EDA discussion at the May 14 meeting, staff has made additional
changes to the second draft of the EDA Business Plan. This third draft contin-
ues to incorporate economic development strategies developed by SCALE, met-
rics proposed by city staff, an implementation plan, and a summary of funding
resources to consider for implementing future EDA strategic initiatives.
History
The City Council appointed members to the (new) EDA for 2011. Since early
2011, staff changes slowed the progress of the EDA establishing a business
plan to help guide strategic directions. Some initiatives have moved forward,
including a broadband analysis and a business incubator concept. This plan is
necessary in order to help assure continued support for ongoing economic de-
velopment efforts.
Conclusion
The third draft plan incorporated the following changes:
•"Measuring Success" section on pages 1-2 was revised for items 1-5.
• A new section was added on page 2, "2030 Vision & Strategic Plan".
•"Looking Ahead" section on page 8 was revised to combine three lists in-
to two timeframes.
• "Achievement Goals" section on page 10 was revised to include Base
goals and another set of goals based on Economic Development initia-
tives by the EDA or City Council.
•"Economic Landscape" section includes more information in item #2.
ISSUES: This business plan provides strategic direction for the EDA priorities. Some
great additions have been added to the plan. It is now 15 pages. The EDA
should consider if some distillation would be appropriate so that the plan focuses
on the key points and is not duplicative or unnecessarily detailed.
The EDA should determine if it: (1) is comfortable with the plan and ready to
adopt it; (2) would like another body like the EDAC to review it to provide input;
or (3) would like to direct additional modifications for review at a future meeting.
FINANCIAL Resources, including those related to time and money, will be necessary in order
IMPACT: to implement the proposed business plan.
ALTERNATIVES: 1. Adopt the plan as proposed or with amendments.
2. Continue discussion to a future meeting.
3. Have another body critique the plan.
4. Take no action at this meeting.
RECOMMENDED As determined by the EDA.
MOTION:
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"A Wonderful Place to Live, Work and Play for a Lifetime"
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA)
BUSINESS PLAN — DRAFT #3, 6/01/12
Purpose
This business plan is intended to guide the Prior Lake Economic Development Authority (EDA) as it
develops and implements strategic initiatives in 2012 and 2013, as well as looking ahead to 2020 and
2030. These strategies are guided primarily by the adopted 2030 Vision and Strategic Plan, including
goals related to: (1) job creation/retention, (2) services for businesses and residents, and (3) a stable
and reliable tax base.
The Bylaws of the Prior Lake EDA state, "The business of the Economic Development Authority shall
include but not be limited to: promoting growth, development and redevelopment of retail,
commercial and industrial properties in Prior Lake; diversifying the City's tax base; providing tools and
incentives to achieve the Economic Vision Element in the City's 2030 Vision and Strategic Plan; and
providing an incubator to generate ideas and initiatives to support economic growth and vitality."
The City's mission, as stated in 2030 Vision and Strategic Plan, is to "enhance the quality of life for
current and future citizens by providing quality services which result in a safe and healthy
community; recreation and leisure opportunities; preservation and effective use of lakes, parks and
other natural resources; economic vitality; and the promotion of partnerships, volunteerism and civic
pride for the community's diverse population." For Community and Economic Development, the
Strategic Plan states that the EDA's primary responsibility is to assure that shops and services are
provided to residents, to provide employment opportunities, and to ensure a strong and diversified
tax base. Prior Lake also encourages high quality residential and business development.
Measuring Success (Metrics)
The EDA will develop performance measurements that allow continuous reporting on important
aspects of its services, programs and processes. The use of inetrics is being utilized for all city
operations in Prior Lake beginning in 2012, and therefore, metrics will be incorporated into the EDA
Business Plan. To begin this process, the following key economic development objectives are being
identified and prioritized one through five:
Page 1 of 15
1. Assist in the creation of desirable employment opportunities for the citizens of Prior Lake;
2. Identify opportunities where the EDA can assist in attracting and developing new businesses
within the community;
3. Provide the necessary support mechanisms to retain and aid in the expansion of existing
businesses;
4. Broaden and diversify Prior Lake's tax base; and
5. Develop a foundation which will establish Prior Lake as a r
community full of economic opportunity now and well WEICOME
into the future by embracing the motto; Prior Lake: A T°
Wonderful Place to Live, Work and Play for a Lifetime. �
PRIOR LAKE
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In order to measure progress toward achieving these objectives, the following metrics will be used for
measurement purposes:
• Track building permits issued for commercial/industrial projects; determine business and job
growth that may tie to each permit. [monthly evaluation]
• Track residential permits and remaining lot inventory. [quarterly evaluation]
• Track lease inventory of available commercial/industrial building space; determine business
and job growth that may tie to newly leased space. [quarterly evaluation]
• Track business membership with the local Chamber of Commerce in order to assess additional
business and job growth. [quarterly evaluation]
• Track change in commercial/industrial market value using County data [annual evaluation].
• Track the number and acreage of pad-ready commercial/industrial sites [annual evaluation].
• Track zoning permit approval process associated with commercial/industrial projects.
[quarterly evaluation]
• Track speed of processing development/zoning applications. [bi-annual evaluation]
2030 Vision and Strategic Plan
Prior Lake has significant strength as a hub of recreation and entertainment amenities in the
southwest Twin Cities metro region (see #2, page 11). A key economic strategy is to continue to
create initiatives that strengthen this aspect of Prior Lake in conjunction with business technology.
The most recent revision of the city's strategic plan was adopted by the City Council on February 21,
2012. It includes twelve key characteristics and seven strategic elements shown as follows:
Kev Characteristics:
1. Parks, trails and natural resources (that provide year-round recreational activities).
2. Lakes and water quality.
3. Small town feel (downtown; urban & rural mix).
4. Comprehensive planning and infrastructure investment.
5. Positive financial stability.
6. Suburban fringe location; not on a major highway.
Page 2 of 15
7. Home to Mystic Lake Casino/Hotel and SMSC tribal community.
8. Community that struggles with growth options.
9. Minimal zoned areas for businesses (very few pad-ready sites).
10. Collaborative community orientation.
11. Innovative local government.
12. Limited local staff resources.
Strate�ic Elements:
Economic and community development Strong financial management
Natural resources. Community assets
Safe and healthy community Transportation
Communication
Employment
With job and employment growth being key factors for economic development success, it is
important to understand the current status within Prior Lake. Data from the Metropolitan Council
and the Minnesota Department of Employment and Economic Development (DEED) show the
following employment and business characteristics for 2011. City staff has estimated the number of
total employees that work for the Shakopee Mdewakanton Sioux Community (SMSC).
Industry Employees Percent SMSC Est.
Construction 352 4.5% 25
Wholesale Trade 112 1.4%
Retail Trade 353 4.5%
Finance, Insurance and Real Estate 223 2.9%
Professional and Technical Services 162 2.1% 25
Management, Admin. and Other Services 659 8.4% 25
Accommodation and Food Services 3,533 45.2% 3,250
Arts, Entertainment and Recreation 149 1.9%o 75
Public Administration 919 11.7%
Other 1,361 17.4% 400
TOTAL EMPLOYEES 7,823 100% 3,800
Industry Establishments Percent
Construction 93 16.6%
Trade, Transportation and Utilities 101 18.0%
Financial Activities 72 12.9%
Professional and Business Services 120 21.4%
Education and Health Services 59 10.5%
Leisure and Hospitality 29 5.2%
Other Services 52 9.3%
Public Administration 4 0.7%
Other 30 5.4%
TOTAL BUSINESS ESTABLISHMENTS 560 100%
Page3of15
SCALE Initiatives
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A report from the Scott County Association of Leadership and Efficiency (SCALE) Economic
Development Strategy Group, June 2011, has ten recommendations. The Prior Lake EDA should
evaluate these in terms of being a significant partner in future accomplishments.
1. Countv ima�e and identitv — create and promote a specific, consistent, positive identity to
establish its unique competitive advantages; Prior Lake's identity must be a key part.
2. Education — investigate and pursue additional post-secondary education options; Prior Lake
must be a location to consider for satellite campuses and virtual education.
3. Site Availabilitv — identify and support locations for large industrial sites and business parks
that include timely development approvals; Prior Lake must be an active participant to add
sites to this inventory.
4. Infrastructure — focus infrastructure planning and improvements to maximize job creation
opportunities; Prior Lake must contribute its existing/future infrastructure to help achieve
county-wide economic growth potential.
5. Marketing — prepare a marketing plan that builds on common public/private sector interests
in order to promote and grow the economy of Scott County; Prior Lake must highlight its
assets as important contributions to the regional effort.
6. Collaboration/Coordination — participate in all aspects of regional economic development
efforts; Prior Lake should also participate fully in this effort.
7. Public Sector Culture — prioritize customer service, timeliness, accountability and creativity;
Prior Lake's customer service level must be implemented so that customers can "expect to be
greeted courteously, with respect, a prompt offer of assistance, and a can-do attitude".
8. Amenities — identify strategies to support a vibrant entertainment industry, executive housing
and higher-end retail/dining opportunities; of all Scott County cities, Prior Lake has the
greatest opportunity to enhance these amenities.
9. Development Incentives — define and promote existing incentives available to qualified
businesses and explore additional incentives; Prior Lake should identify a list of incentives that
it is willing to provide for economic development.
10. Zonin� and Land Use Re�ulations — provide opportunities for commercial and industrial
development with zoning districts and development standards; Prior Lake should evaluate its
codes and ordinances in relationship to making the city "business friendly".
Page 4 of 15
2012/2013 Implementation Plan
The following actions shall be accomplished during 2012 and 2013 as key initiatives of the EDA. It is
important to realize that all eight initiatives can work together to support a business community that
is focused on technology and Prior Lake's strengths in entertainment/recreation. By moving forward
with these initiatives, Prior Lake will have a more significant business presence in the Twin Cities.
1. Broadband (Communitv Fiber Network). The EDA hired a consultant, Lookout Point
Communications, to move this initiative forward. A subcommittee was formed to work with
the consultant in order to fully evaluate options to provide fiber to homes and businesses
throughout Prior Lake, including Mystic Lake Casino/Hotel and other tribal property.
• Accomplishment: Position Prior Lake to be more competitive in economic development by
connecting existing/future businesses and residents to high-speed fiber network.
• Timeline: The subcommittee will make a recommendation to the EDA by July 1, 2012.
• Budget: $80,000 for the consultant (approved by EDA for 2012 budget).
• Metrics: New business/job growth as a result of fiber availability.
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2. Technolo�v Villa�e (Business Incubator). The EDA formed a subcommittee to explore
opportunities in Prior Lake to create and/or support a new business incubator. Options will be
evaluated in terms of space, location, partnerships and funding.
• Accomplishment: Create a place and support system that strengthens Prior Lake as a
place to start and grow small software/technology businesses.
• Timeline: The subcommittee will make a recommendation to the EDA by July 1, 2012.
• Budget: $25,000-$50,000 estimated support over a 3-year period.
• Metrics: New business/job growth in incubator location.
3. Propertv Supplv and Demand. The EDA will compile a commercial and industrial land
inventory in order to determine the availability of pad-ready sites. The 2011 Maxfield C/I
demand analysis report will be used to establish a projected demand for sites based on
building size and acreage through 2030. An evaluation will be made to determine necessary
steps to ensure that Prior Lake has an adequate supply of pad-ready sites.
• Accomplishment: Move toward Prior Lake having more pad-ready commercial and
industrial sites starting in 2013.
• Timeline: Staff will make a report to the EDA by July 1, 2012.
• Budget: Unknown.
• Metrics: New business/job growth and tax base increase on available sites.
Page5of15
4. Deerfield and Welcome Avenue Industrial Parks The EDA will be involved with various
aspects of these two industrial areas. The EDA will help evaluate ways to help achieve
development goals on vacant land in Deerfield in partnership with property owners and future
developers. A feasibility report has been completed for Welcome Avenue to identify costs
associated with providing water, sewer and streets to all parcels. It is possible that funding
sources may be needed from an economic development perspective in order to successfully
implement economic development objectives in these two important industrial sites.
� Accomplishment: Help the City Council evaluate the future needs in Deerfield and
Welcome Industrial Parks in order to improve overall economic development potential.
• Timeline: July 1 through December 31, 2012.
• Budget: Unknown.
� Metrics: New business/job growth and retention, and tax base increase on the improved
industrial property.
5. Economic Development Resources. The EDA will evaluate funding resources that are
available and necessary to assist businesses and help it achieve economic development
objectives. Example resources include tax increment financing, tax abatement, revolving loan
funds and the EDA budget. New and expanded resources will also be explored by the EDA,
including a permanent funding source for the EDA starting in 2013.
• Accomplishment: Position Prior Lake to be more proactive by identifying resources that
can be used and supported for future commercial and industrial development.
• Timeline: Ongoing during the year.
• Budget: Approximately $588,000 total potential resources (see table below).
• Metrics: New business/job growth and tax base increase with city financial assistance.
2012 EDA Special Revenue Fund Budget $ 167,750
2012 General Fund Economic Development Budget $ 24,000
Business Revolving Loan Fund (Federal) $ 112,500
Business Revolving Loan Fund (State) $ 87,500
TIF District 1-1 Excess Increment $ 195,000
Scott County CDA Grant (for broadband study) $ 15,000
TOTAL $ 601,750
6. Redevelopment. The EDA will identify redevelopment opportunities that include the
downtown area and other potential (commercial/industrial) sites. For example, the "Digger's
Site" is a candidate for redevelopment outside the downtown, which is one site of many that
will enhance Prior Lake's retail sector. The analysis will review existing constraints that inhibit
redevelopment to occur (i.e., site contamination) and associated costs that may require public
sector involvement.
• Accomplishment: Identify sites and develop the necessary resources to improve the
likelihood that future redevelopment will occur in Prior Lake.
• Timeline: Staff will submit a plan to the EDA by September 30, 2012.
• Budget: Unknown.
• Metrics: New business/job growth and tax base increase on redeveloped sites.
Page 6 of 15
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Redevelopment, "Diggers" Site —Trunk Highway 13 and Anna Trail
7. Business Venture Fair. The EDA will organize and host a business seminar event for one-
half day that provides information for start-up businesses and entrepreneurs, and for angel
investors. This event aims to begin a series of regular business seminars in Prior Lake that will
focus on ways to encourage economic growth. Angel fund investing may also lead to a local
investment fund to support new business development.
• Accomplishment: Develop an angel fund as a resource to help finance local and regional
new business ventures.
• Timeline: Event to occur during the last quarter of 2012.
• Budget: $10,000 (approved by EDA for 2012 budget).
• Metrics: New business/job growth using angel investment funding or other business
financing resources.
8. Citv Codes & Fees. The EDA will review a comprehensive analysis of city codes and fees by
staff in light of making Prior Lake more "business friendly°. This analysis will include examples
such as the design standards in the zoning code and a comparison of permit fees, as well as an
evaluation of the internal application/permit review process. Staff will develop initial
recommendations for EDA consideration, which will also receive EDAC input.
• Accomplishment: Make changes to city codes, fees and/or processes that help achieve
improved business friendliness in Prior Lake.
• Timeline: Staff will provide preliminary recommendations by June 30, 2012.
• Budget: No immediate impact due to city staff oversight.
• Metrics: New business/job growth based on a more business friendly codes and the
corresponding permit review process.
Page 7 of 15
Looking Ahead — 2020 and 2030
2014-2020 Timeframe Goals:
1. Continue the successful implementation of a Technology Village Incubator program in
partnership with existing commercial office building owners in Prior Lake, and develop
a plan to expand this to a larger Technology Village campus.
2. Complete the full build-out of a community-wide (ultra-high-speed) fiber optic
network system to all residents and businesses in Prior Lake in cooperation with SMSC;
utilize system to support a data center proposal.
3. Work in partnership with major property owners in the CR 42 corridor to begin
implementing a plan to have pad-ready commercial and business park property
available for development.
4. Work in partnership with property owners in the Deerfield and Welcome Ave.
industrial areas to fully develop these areas to their maximum potential.
5. Begin to implement actions necessary to redevelop key opportunity areas as identified
in a Redevelopment Plan for Prior Lake.
6. Begin the first implementation stages of a Technology Village campus with an
estimated 100,000 square feet of building space.
7. Cooperate with a private developer to build a data center facility in Prior Lake.
2021-2030 Timeframe Goals:
1. Continue to implement and expand upon all stages of economic development
strategies that were underway from 2014-2025.
2. Successfully attain a strong business presence within the Twin Cities as a community
full of smaller high technology that have built their home base around a place with
numerous amenities and a desirable lifestyle.
3. Fulfill many aspects of the 2030 Vision Statement for Prior Lake.
4. Complete all supporting infrastructure improvements that results in over 100 acres
being developed as commercial and business park uses.
5. Develop plans for the expansion of commercial and industrial development in the
Southwest annexation area of Spring Lake Township.
6. Achieve key redevelopment objectives within the city related to the downtown area
and other priority redevelopment sites.
Summary of Short-Term Funding Needs and Resources
2012 EDA and Economic Development Bud�et (Approved):
o Expenses = $191,750
o Uses: 0.5 ED Director salary/benefits ($70,000); broadband study ($80,000);
Venture Fair ($10,000); legal/training/etc. ($31,750).
o Revenue = $191,750
o Sources: $40,000 tax levy +$132,000 reserves +$15,000 grant +$4,800 interest
Page 8 of 15
2013 EDA Bud�et (Estimated):
o Expenses = $220,000
o Uses: 0.5 ED Director salary/benefits ($72,500); business incubator
set-up and operations ($50,000); pad-ready sites and/or redevelopment
assistance ($75,000); miscellaneous ($22,500).
o Revenue = $220,000
o Sources: $125,000 tax levy +$75,000 TIF 1-1 +$6,000 incubator leases
+$10,000 revolving loan fund +$4,000 revolving loan administration
2014+ Future EDA Bud�et (Proiected):
o Expenses = $200,000
o Uses: 0.5 ED Director salary/benefits ($75,000); business incubator
operations ($6,000); pad-ready sites and/or redevelopment
assistance ($100,000); miscellaneous ($19,000).
o Revenue = $200,000
o Sources: $100,000 tax levy +$15,000 incubator leases +$70,000
redevelopment grant +$10,000 revolving loan fund +$5,000 revolving
loan administration
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Key Bud�et Issues:
1. Should the EDA continue to fund city staff time devoted to economic development?
2. What ongoing operations should be funded, if any (i.e., incubator)?
3. What special projects should be anticipated each year related to city assistance for
redevelopment or economic development?
4. How much should the EDA levy, if any, and should that amount be offset by reductions
in other city functions/programs?
Achievement Goals — Jobs, Businesses and Market Value
The following goals are established for Prior Lake related to jobs, businesses and taxable market value
increases. The "Base" job creation, new businesses, and increased value estimates are based on the
results of the Prior Lake Commercial and Industrial Demand Analysis completed by Maxfield
Research, Inc. The "Base" projections assume jobs and businesses will be added due to normal
market demand. "E.D.", or Economic Development goals, is used to show an increase in jobs, new
businesses and market value, over and above the Maxfield Research projections. The "E.D." goals
Page 9 of 15
assume policy changes and an increased public investment by the Prior Lake EDA and City Council
(i.e., public financing assistance, business incubation, public land sales). With increased public
investment in commercial and industrial development, the E.D. goals estimate an increase of 25%
above the base line figures.
Time Period Base Jobs Created / Base Businesses Added / Base Value Increase /
+ E.D Jobs Created + E.D. Businesses Added + E.D. Value Increase
2011-2015 300 / 375 45 / 55 $9.6 /$12.0 million
2016-2020 675 / 850 95 / 120 $21.2 /$26.5 million
2021-2025 625 / 780 85 / 105 $20.8 /$26.0 million
2026-2030 625 / 780 85 / 105 $20.8 /$26.0 million
Total 2,225 / 2,785 310 / 385 $72.4 /$90.5 million
Base Assumptions: 1. Retail jobs created per 1,000 building square feet = 2.5
2. Office jobs created per 1,000 building square feet = 3.3
3. Industrial jobs created per 1,000 building square feet = 1.5
4. Additional building square feet in Prior Lake based on the 2011Maxfield
Commercial/Industrial Demand Analysis report.
5. Retail businesses added is based on 1 per 3,000 square foot average.
6. Office businesses added is based on 1 per 1,800 square foot average.
7. Industrial businesses added is based on 1 per 12,000 square foot average.
8. Total site/building market value increase is based on $90.00 per building
square foot average (which then includes the land value).
Page 10 of 15
Economic Landscape of Prior Lake
1. Location and Transportation. Prior Lake is located in northern Scott County between Savage and
Shakopee. The city is accessed by two Principal Arterial highways, including CSAH 18 and 42 in the
northeast quadrant of the city; TH 13 also extends from that northeast area to the southwest. CSAH
21 now extends from State Hwy. 169 to CSAH 42, with a full connection southeasterly through
downtown Prior Lake to Interstate 35. Prior Lake's location surrounding three beautiful and
prominent lakes results in it being home to many Twin Cities' business owners and executives. This
"home" connection can provide future economic growth opportunity.
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2. Entertainment/Recreation Focus. Prior Lake hosts various entertainment and recreation
amenities, including The Wilds Golf Club, The Meadows at Mystic Lake golf course, Dakotah! Ice
Center, 4,000-slot Mystic Lake Casino, 600-room Mystic Lake Hotel, Captain Jack's on the Lake, Mystic
Lake's 2,100 seat indoor showroom and 8,350-seat outdoor amphitheater, and two regiona) parks.
An extensive city park system exists in Prior Lake, including 54 neighborhood and 5 community parks,
and 60 miles of trails and sidewalks. The city's 14 lakes are a summer mecca for residents and visitors
alike for boating, swimming and fishing. Regional entertainment and recreation assets include:
• Cleary Lake Regional Park
� Murphy-Hanrehan Park Reserve
• Canterbury Park
• Valley Fair
• Minnesota Renaissance Festival
• Crofut Family Winery and Vineyard
• Mystic Lake Casino, Hotel, Showroom and Amphitheater
• The Wilds and The Meadows golf courses
Page 11 of 15
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3. Market Value. The city's commercial/industrial market value as a percent of the total market
value is 4.8% compared to Savage at 15.1% and Shakopee at 23.4%; the statewide city average is
18.2%. However, the city has a higher total market value of $115.8 million per capita compared to
Savage at $98.7 million and Shakopee at $96.6 million. Another positive indicator shows Prior Lake
growing its total market value by 149%o (from 2002 to 2011) compared to Savage with a 95% increase
and Shakopee with a 103% increase. As a sign of its lower commercial/industrial market value, the
city is in the top 20 metro area list of fiscal disparities'recipients' with a ranking of 17; Shakopee is in
the top 20 list of fiscal disparities 'contributors' with a ranking of 16 (fiscal disparities is a
redistribution pool equal to 40% of the growth in Twin Cities commercial/industrial value since 1971�.
4. Emplovment/Workforce. Prior Lake currently has 560 business establishments and 7,735
employees working within the city. The city's employment level decreased 3.0% from 2000-2010
compared to growth in the neighboring cities of Savage (+25.5%) and Shakopee (+34.9%). Scott
County's employment level increased 18.8%o while the Twin Cities' level decreased 3.0% during that
same time period. Overall, 6% of all businesses in Prior Lake are associated with "arts,
entertainment, recreation, accommodation and food services" while 64% of all employees work
within those sectors. The city has its employment concentrated at Mystic Lake Casino/Hotel with
3,800 employees, followed by ISD No. 719 with 740 and Southlake Village with 105 employees.
Workforce characteristics show that 40% of Prior Lake residents 25+ years of age have received
Bachelor's Degrees or higher compared to 31%a in Minnesota and 28% nationally. Median income of
Prior Lake households in 2010 was $89,400 compared to $57,000 as the Minnesota average.
Employment Levels
Jurisdiction 2000 2005 2010 2000-10 Change 2000-10 Change
Prior Lake 7,972 8,415 7,735 -237 -3.0%
Scott County 34,980 41,290 41,566 +6,587 +18.8%
Twin Cities 1.61 m. 1.60 m. 1.54 m. -65,830 -4.1%
Source: Metropolitan Council, Metro Stats, September 2011, "Employment in the Twin Cities Region, 2000-2010"
Page 12 of 15
5. Buildin� Activitv. The city had an average annual building permit value of $9.6 million/year from
2000-2011 for commercial/industrial (C/I) new construction projects compared to an average of
$50.2 million/year for residential new construction. In addition, new C/I value decreased significantly
in 2010-2011 with an annual average new construction value of $280,000 compared to an average of
$11.5 million during 2000-2009. On a positive note, through the first quarter of 2012, C/I value has
increased substantially from 2011.
Commercial/Industrial Building Permit Value, 2001-2011
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$20,000,000 - � Shakopee
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6. Commercial (Retail/Office) Property. The city has various commercial areas that include
downtown, North TH 13, Gateway, South TH 13 and the future CR 18/42 and CR 21/42 areas.
Approximately 200 vacant commercially-zoned acres exist in Prior Lake. However, only 12 parcels
with 19 acres are pad-ready (building permits can be issued), while 8 more parcels with 21 acres are
nearly pad-ready (sites that have minimal processing, such as platting of outlots into lots).
Downtown Prior Lake
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Page 13 of 15
7. Industrial and Business Park Propertv. Prior Lake has three industrial parks (Waterfront Passage,
Deerfield and Welcome Ave.) that include 95 acres of developed property and 65 acres of vacant
property; developed land includes 542,500 square feet of building space. All three areas are located
in the southeast portion of the city with access to CSAH 21. Of all vacant industrial sites, only 8
parcels with 12.4 acres are pad-ready; 4 more parcels with 17.5 acres are nearly pad-ready. Another
200 acres of vacant land exists for business park, but these acres are not ready for development.
2012 Industrial Sitea '
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8. Future Business Park, Industrial and Commercial Areas. Approximately 200 vacant acres are
designated in the 2030 Comprehensive Plan for future business park development near the northerly
CSAH 18/42 and CSAH 21/42 intersections. One property owner controls all 200 acres! In addition,
Prior Lake has an orderly annexation agreement with Spring Lake Township to annex nearly 600 acres
of property for future commercial (200 acres) and industrial (400 acres) development southwest of
Prior Lake. This area surrounds the CSAH 17 and TH 13 intersection.
Business Park Area at Southeast Corner of CSAH 21 and 42 (50 acres)
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Page 14 of 15
9. Market Demand. The city's 2011 market analysis shows retail, office and industrial space demand
of 120,000 square feet from 2011-2015; 260,000 square feet from 2016-2020; 260,000 square feet
from 2021-2025; and 260,000 square feet from 2026-2030, for 20-year average annual demand of
45,000 square feet (combined for retail, office, industrial). Further breakdown of each land use type
is shown below:
TYPE 2010-2015 2016-2020 2021-2025 2026-2030 TOTAL
2010-2030
Retail — Bldg. Sq.Ft. 55,000 125,000 125,000 125,000 430,000
Retail—Acres 9.0 20.0 20.0 20.0 69.0
Office — Bldg. Sq.Ft. 45,000 100,000 75,000 75,000 295,000
Office — Acres 8.0 16.0 12.0 12.0 48.0
Industrial — Bldg. Sq.Ft. 20,000 40,000 60,000 60,000 180,000
Industrial — Acres 4.0 7.0 10.0 10.0 31.0
Source: Maxfield Research, Inc. "Prior Lake Commercial and Industrial Demand Analysis, March 2011
Building square feet is converted to acres by dividing one acre by 6,250 square feet (acres rounded up to X.0)
Page 15 of 15
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Prior Lake_ MN 55372
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OK-DR ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2012
AGENDA #: 5.B
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: TECHNOLOGY VILLAGE BUSINESS PLAN — DRAFT #1
(FROM THE TECHNOLOGY VILLAGE SUBCOMMITTEE)
DISCUSSION: I ntroduction
At the February 13, 2012 meeting of the Economic Development Authority, the
Technology Village subcommittee presented its initial Report and Recommenda-
tions which identified models of business incubation, outlined financial options to
support start-up and ongoing operational costs, evaluated opportunities for busi-
ness incubation in Prior Lake and identified a preferred plan for the City.
The EDA asked the Technology Village subcommittee to continue further evalu-
ation of the proposed Technology Village incubator through the development of
a Business Plan. Additional evaluation was requested of the subcommittee re-
lated to estimated EDA funding commitments and alternate space options, in-
cluding city-owned properties due to lower potential costs and no direct lease
subsidies.
History
The EDA appointed the Technology Village subcommittee in the fall of 2011 in
an effort to assemble and organize human resources to establish a business
incubator; which is a key objective of the EDA. The EDA provided the subcom-
mittee with direction to begin evaluating options to implement a technology busi-
ness facility (incubator) in Prior Lake, including a report that covers these prima-
ry issues:
• Identify models of business incubation (public, private, or combination);
• Outline financial models to support start-up and ongoing operating costs;
• Evaluate opportunities for business incubation in Prior Lake; and
• Identify a preferred plan for Prior Lake.
The subcommittee developed a framework and implementation outline, which
was previously reviewed by the EDA, for the purpose of forming the initial focus
and outlining goals for the proposed Technology Village Incubator. The sub-
committee used the framework and implementation plan as a guide to develop
its Report and Recommendations, which was reviewed by the EDA on February
13, 2012.
Conclusion
The attached Technology Village Business Plan was developed based on direc-
tion the subcommittee received from the EDA. The business plan identifies a
three-phase plan for the implementation of the Technology Village incubator
program.
Phase I of the Technology Village plan will be housed on the main floor of Prior
Lake City Hall within an existing underutilized office space of approximately
2,000 square feet. Initiating the program in the existing City Hall building will
help minimize start-up costs and will also allow for the shared use of services
already in place serving City of Prior Lake staff, including; internet, phone, fax,
copy machine, printer, meeting space, cafeteria/break room, etc. Another major
locational benefit is the proximity to city staff who will be administering the day-
to-day activities of the program.
Phase II of program implementation will involve expanding the program and the
amount of clients served, either by (i) vacating the City Hall space and relocating
the entire program into a larger facility within the community; or (ii) relocating a
portion of the clients, those who are ready to operate more independently, into
another facility within the community while maintaining the City Hall space to
house clients in the early stages of incubation.
Should the Technology Village incubator program prove successful through its
first two phases, Phase III implementation may involve expanding the program
through construction of an incubator office building and the development of a
Technology Village campus.
ISSUES: Prior to implementing the Technology Village plan and identifying potential ten-
ants and service providers, the subcommittee would like to receive comments
and direction from the EDA.
FINANCIAL The subcommittee has developed an estimated operating budget for years one
IMPACT: through three of program operation. The Technology Village program will re-
quire a short and long-term financial commitment by the EDA, and it will have an
impact on the EDA budget.
ALTERNATIVES: 1. Motion and second adopting the Business Plan as proposed or with amend-
ments.
2. Motion and second authorizing staff to prepare the necessary Economic De-
velopment Authority budget amendments for EDA review and approval to
implement the Technology Village incubator program.
3. Provide direction to the Technology Village Incubator Subcommittee.
4. Continue Discussion at a future meeting.
5. Take no action.
RECOMMENDED As determined by the EDA.
MOTION:
ATTACHMENTS: 1. Technology Village Business Plan — Draft #1
BUSINESS PLAN
TECHNOLOGY VILLAGE
CITY OF PRIOR LAKE
ECONOMIC DEVELOPMENT AUTHORITY
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TABLE OF CONTENTS
SECTION TITLE PAGE
1.0 EXECUTIVE SUMMARY ............................................................... 2
2.0 MISSION AND OBJECTIVES ......................................................... 4
3.0 CLIENT FOCUS ........................................................................... 4
4.0 ORGANIZATIONAL STRUCTURE .................................................. 5
5.0 BOARD COMPOSITION ................................................................ 6
6.0 SERVICES AND PROGRAMS ......................................................... 7
6.1 Direct Business Development Assistance .......................................... 7
6.2 Professional Network and Relationship Support .................................. 8
6.3 Educational and Training Programs ................................................. 8
6.4 Facility Based Services ................................................................ 9
7A MARKETING, PUBLIC RELATIONS, AND CLIENT RECRUITMENT ... 9
7.1 Marketing and Public Relations Plan ................................................ 9
7.2 Website Development ................................................................. 10
7.3 Client Recruitment Strategy .......................................................... 10
8.0 CLIENT APPLICATION, SELECTION, AND GRADUATION PROCESS,. 11
8.1 Application Process .................................................................... 11
8 .2 Selection ................................................................................. 12
8.3 Graduation Policy ...................................................................... 13
9.0 STAFFING PLAN .......................................................................... 13
10 FACILITY ................................................................................... 14
11.0 BUDGET AND FINANCIAL ............................................................ 14
11.1 Facility Development Budget ....................................................... 15
11.2 Capital Expenditures ................................................................. 15
11.3 Operating Budget ..................................................................... 16
11.4 Operating Budget Assumptions .................................................... 17
11.5 City of Prior Lake In-Kind Contributions ......................................... 17
12.0 FUNDING SOURCES ..................................................................... 17
13.0 SUCCESS CRITERIA ..................................................................... 18
14.0 NEXT STEPS ................................................................................ 18
Appendix A- Proposed Technology Village Floor Plan ............................... 19
Appendix B- Sample Tenant Application Form ........................................ 20
Appendix C- Sample Technology Village Logos ....................................... 22
Technology Village Business Plan Page 1
1.O EXECUTNE SUMMARY
This business plan was drafted by the City of Prior Lake Technology Village subcommittee. The
subcommittee was appointed by the Prior Lake Economic Development Authority (EDA) in the fall of
2011 in an effort to assemble and organize human resources to establish a business incubator; which is
a key objective of the EDA. The EDA provided the subcommittee with direction to begin evaluating
options to implement a technology business facility (incubator) in Prior Lake, including a report that
covers these primary issues:
• Identify models of business incubation (public, private, or combination);
• Outline financial models to support start-up and ongoing operational costs;
• Evaluate opportunities for business incubation in Prior Lake; and
• Identify a preferred plan for Prior Lake.
The subcommittee completed its initial Report and Recommendations, which was presented to the
EDA on February 13, 2012. The report identified models of business incubation, outlined financial
options to support start-up and ongoing operational costs, evaluated opportunities for business
incubation in Prior Lake and identified a preferred plan for the City. This business plan serves as the
next step toward implementation of the Technology Village business incubator program in the City of
Prior Lake.
The Bylaws of the Prior Lake EDA state, "The business of the Economic Development Authority shall
include but not be limited to: promoting growth, development and redevelopment of retail, commercial
and industrial properties in Prior Lake; diversifying the City's tax base; providing tools and incentives
to achieve the Economic Vision Element in the City's 2030 Vision and Strategic Plan; and providing
an incubator to generate ideas and initiatives to support economic growth and vitality."
it is the subcommittee's belief that the implementation of the proposed Technology Village program
will not only achieve the EDA's goal of establishing a business incubator in the community but the
program will also assist in achieving the EDA's overall objectives of promoting growth, diversifying
the City's tax base, and providing the tools and incentives necessary to achieve key elements in the
2030 Vision and Strategic Plan.
The subcommittee does not view the Technology Village program as a"stand alone" project; rather,
the subcommittee views this program as a small piece of the puzzle. Together with the other initiatives
of the EDA, such as the community wide broadband fiber network and ensuring adequate pad ready
development sites, Technology Village will benefit from and enhance these other objectives and ensure
the greatest opportunity for all objectives to positively impact and guide the development of our
community.
The National Business Incubator Association (NBIA) defines business incubation as a business support
process that accelerates the successful development of start-up and fledgling companies by providing
entrepreneurs with an array oftargeted resources and services. These services are usually developed or
orchestrated by incubator management and offered both in the business incubator and through its
network of contacts. A business incubator's main goal is to produce successful firms that will leave
the program financially viable and freestanding. Graduates of incubator programs have the potential to
create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local, regional
and national economies.
Technology Village Business Plan Page 2
Critical to the definition of an incubator is the provision of management guidance, technical assistance,
and consulting tailored to young growing companies. Incubators generally provide clients access to
appropriate rental space and flexible leases, shared basic business services and equipment, technology
support services, and assistance in obtaining the financing necessary for growth.
In order to achieve its goal of assisting in the creation of new desirable job opportunities, contributing
to the growth and success of emerging technology businesses, and providing a new source of tax
revenue for Prior Lake and Scott County, the Technology Village subcommittee has developed a three
phase plan for the implementation of the Technology Village incubator program.
Phase I of the Technology Village plan will be housed on the main floor of Prior Lake City Hall within
an existing underutilized office space of approximately 2,000 square feet. The space consists of five
hard-walled offices, one conference room and a 775 square foot open office area. Initiating the
program in the existing City Hall building will help minimize start-up costs and will also allow for the
shared use of services already in place serving City of Prior Lake staff, including; internet, phone, fax,
copy machine, printer, meeting space, cafeteria/break room, etc. Another major locational benefit is
the proximity to city staff who will be administering the day-to-day activities of the program.
Phase II of program implementation would involve expanding the program and the amount of clients
served, either by (i) vacating the City Hall space and relocating the entire program into a larger facility
within the community; or (ii) relocating a portion of the clients, those who are ready to operate more
independently, into another facility within the community while maintaining the City Hall space to
house clients in the early stages of incubation.
Both phase II options would allow the program to maintain its client base and provide the necessary
space to serve additional clients as Technology Village develops. Phase II of the program would
require additional approvals and financial commitments, such as the hiring of an Executive Director
and/or additional support staff. Prior to proceeding with Phase II implementation, additional
Economic Development Authority review and approval will be required.
Should the Technology Village incubator program prove successful through its first two phases, Phase
III implementation may involve expanding the program through construction of an incubator office
building and the development of a Technology Village campus. As is the case with Phase II
development, additional studies, EDA discussions and City of Prior Lake financial commitments
would need to be secured prior to Phase III implementation.
The subcommittee's vision for the Technology Village campus is a multi-acre, multi-building
development that would not only house the incubator building but would be designed as an ideal
location for new and emerging technology businesses. Public investment in a Technology Village
campus, together with a proposed broadband fiber network, could place Prior Lake at a great
advantage when attracting business from outside the region and would also provide an ideal location
for existing businesses to stay and grow in Prior Lake. Although construction of an office building and
public development of an office park may seem somewhat daunting at this time, the subcommittee
feels very strongly that public financial participation in the development of a Technology Village
campus may be necessary to entice desirable technology related commercial and office development
and attract the related private investment dollars.
Technology Village Business Plan Page 3
The City of Prior Lake has become a corporate member of the National Business Incubator
Association (NBIA). NBIA is a valuable resource which provides the EDA, Technology Village
subcommittee and city staff with up to date practical information gleaned from existing business
incubators throughout the nation. Information and materials for this business plan were gathered from
multiple sources; including NBIA, published NBIA articles, government data sites, previous City of
Prior Lake studies, and published incubator business plans and articles completed by other entities;
specifically the Business Plan for a Technology Incubator, Lane County OR, prepared by KJ Smith
Associates, and the National Security Technology Incubator Business Plan, prepared by Arrowhead
Center, New Mexico State University.
2.0 MISSION AND OBJECTIVES
Technology Village Mission Staterraent - The Prior Lake Technology Village is dedicated to providing a
diverse sustainable environment as an incubator in which new and emerging companies can develop
and achieve, with the end result being profitable business, job creation, capital generation, economic
diversity, and a positive impact in Prior Lake and the Scott County communities.
In general, the mission of any business incubator is to aid in the successful development of emerging
businesses. Ideally, businesses that graduate from an incubator move out into the community and
contribute to the overall vitality, diversity, and growth of the economy. Not only will the incubator
companies benefit from the networking and mentoring, reduced barriers to the market, and increased
visibility and stature, but the entire community will benefit from the business development through
new employment opportunities, enhanced community image, increased entrepreneurialism and
additional tax revenues.
3.O CLIENT FOCUS
Incubators vary in the way they deliver their services, in their organizational structure, and in the types
of clients they serve. There are many examples of incubator programs throughout the nation with a
specific client focus; however, for the purposes of the Technology Village subcommittee's research,
the members chose to focus on the strengths and challenges of the four main North American incubator
focuses, which according to 2006 State of the Business Incubation Industry, are mixed-use, followed
by technology, service/professional, and manufacturing.
Following their research, the Technology Village subcommittee determined the clients of the program
should be of a complimentary use to each other to best utilize available resources and allow clients the
opportunity to share information on business related subjects to fully capture the business incubator
concept and provide the greatest opportunity for program success. For these reasons, the
subcommittee determined a technology focus that fosters the growth of companies involved in
emerging technologies such as software, telemedicine, biotechnology, or instrumentation would
provide the greatest opportunity to positively impact the community and assist with high quality job
growth.
Due to size limitations, Technology Village will focus its efforts on developing technology related
businesses; ideally attracting software as a service (SaaS) and telemedicine clients. However, the
program will be designed so it does not discourage or restrict the program benefits to only those
businesses housed within the Technology Village facility. The program's Executive Director and
Board of Directors will work within their network of service providers to offer educational
Technology Village Business Plan Page 4
opportunities, provide mentoring and business assistance, monitor progress, and provide the necessary
business development resources through a virtual incubator styled program for any client interested in
participating in the Technology Village program and establishing their business in Prior Lake.
In addition to the physical program location within City Hall, the Technology Village program will
also offer a virtual incubator approach, which involves the maintenance of a network of incubator
client needs and an active list of services available to incubator clients, such as low-cost lease space,
accounting, legal, financial, marketing and mentoring services. The program's main function under this
scenario will be to manage the portfolio of incubator services and act as an honest broker between
service providers and incubator clients. The Technology Village subcommittee and the City of Prior
Lake want to ensure that every entrepreneur interested in starting a business in Prior Lake can receive
the necessary support and mentoring to provide the greatest opportunity for success, no matter what
type of specific industry focus.
4.0 ORGANIZATIONAL STRUCTURE
During the planning and recommendation stage, the Technology Village subcommittee evaluated
organizational structure alternatives; including, public/private parmership, private for-profit
corporation, independent non-profit corporation and host non-profit corporation. The subcommittee's
evaluation of each incubator configuration included financial obligations, non-monetary opportunities
for public assistance, legal requirements, incubator management structure, staffing requirements, and
the City of Prior Lake's role in program implementation.
Following review of each organizational structure, the Technology Village subcommittee
recommended the program operate as a public/private partnership. However, the public/private
method requires a financial or equity contribution from a private party and the subcommittee was not
able to secure a sufficient private investment to proceed under that model. Upon further research into
the required public financial commitment and available space alternatives within the community, the
subcommittee chose to recommend a public sponsorship structure during the initial phase of program
development.
The primary reason for the shift in recommended organizational structure is the Technology Village
subcommittee determined its preferred site for Phase I program implementation is located within Prior
Lake City Hall, which lessens the need for a private financial commitment. By utilizing existing space
within the Prior Lake City Hall and capitalizing on the proximity of City staff who will be managing
the day-to-day operations, the subcommittee feels strongly that Phase I of the Technology Village
program will have the greatest opportunity to develop and succeed within City Hall.
This subcommittee recommends an independent non-profit SOl (c)(3) organization be established for
Technology Village. The non-profit model seeks increased job creation and economic benefit, not a
return on investment, and therefore is well-suited to serve incubator clients. The non-profit structure
will also allow for access to public funding and private donations that will be solicited during program
start-up and through the early years of operation.
The organizational structure of Technology Village will include a Board of Directors, which will
establish program goals and guidelines, and an Executive Director, who will be charged with
implementing the goals of the organization and managing day to day activities with the assistance of
City of Prior Lake staff.
Technology Village Business Plan Page 5
5.0 BOARD COMPOSITION
The initial board composition is very important. When determining the make-up of the Board of
Directors, economic development or relevant business expertise are critical components. In the
formation of the Board, Prior Lake must differentiate between economic development and community
development; they are not the same and should not be confused. Economic development is generative;
having the power or function of generating, originating, producing, or reproducing and community
development is distributive; serving to distribute, assign, allot, or divide. The subcommittee's mission
and focus for the Technology Village program is not a community development initiative; rather, an
economic development initiative designed to create business and employment opportunities.
The initial Board of Directors will consist of individuals and organizational representatives that share
the vision of Technology Village as an economic development initiative and those who are able to
provide expertise that will help fulfill the program's mission. It is recommended that the Board consist
of representatives from the Technology Village service providers, members of the private sector with
notable expertise relevant to the program's technology focus, and representatives of public sector
economic development groups. The full Board of approximately ten to twelve members will operate
under an established set of bylaws approved by the Prior Lake City Council and it is recommended that
members will be appointed to the Board by the City Council based on the recommendations provided
by the Technology Village selection committee.
A preliminary list of the types of suggested representatives for the incubator would include members
or representatives of the following organizations:
� Government/Sponsorship Organization
� Citizen & Business Community
• Professional, Technological and Financial Expertise
o Technology Industry Representative/Technology Entrepreneur
o Venture Capital Financial Institution/Bank
o Legal
o Marketing
o Accounting
o Administration
• Economic Development Agents & Service Organizations
The primary functions of the Board will be to plan and formulate policy to guide the programming and
direction of the Technology Village program, hiring of the Executive Director position, assist in
screening prospective incubator clients, and ensuring the overall financial viability of the program.
Board members should have the ability to provide network connections that will assist the program's
Executive Director in creating links to investment and professional resources that support the success
ofTechnology Village clients. The Board will be instrumental in promoting Technology Village in the
community and generating awareness and understanding of the Technology Village program as an
important economic development tool for the City of Prior Lake and surrounding Scott County
communities.
Technology Village Business Plan Page 6
6.0 SERVICES AND PROGRAMS
Incubator services and programs are designed to increase a client's likelihood of successful
development and growth beyond what the client company could achieve on its own. Offering value-
added services is key to the incubator's ability to successfully graduate clients into the community to
generate jobs and wealth in the region.
Incubator offerings are divided into four categories:
• Direct Business Development Assistance
• Professional Network and Relationship Support
• Educational and Training Programs
� Facility-Based Services
The Executive Director and Board of Directors will work to develop cooperative agreements and
referral relationships with existing resource partners throughout Prior Lake, Scott County, and the
southern metro which provide services that support the growth of early stage businesses. These
resource partners shall include, but are not limited to, Prior Lake Chamber of Commerce, South Metro
Service Corps of Retired Executives (SCORE), Small Business Development Center (SBDC) — Apple
Valley, Small Business Administration (SBA), Women's Business Development Center, the National
Business Incubator Association (NBIA), and the State of Minnesota Department of Employment and
Economic Development. Cooperation between these organizations will avoid redundancy and provide
an efficient method of directing clients to resources and services that address their specialized needs.
The Technology Village program will complement the mission of all organizations listed above and
will provide these service organizations with expanded outreach and enhanced image. Service
organizations will be able to extend their service base by serving Technology Village clients through
educational seminars, training classes, and counseling. Additionally, support of the Technology
Village project will enhance the image of the organization and provide tangible evidence to the
community of how these organizations are fulfilling their mission and supporting their community.
6.1 Direct Business Development Assistance
Business development assistance is the direct support provided to clients from the time of acceptance
through graduation. The Technology Village Executive Director, with the assistance of city staff and
identified service provider organizations, will provide oversight and facilitate access to resources that
meet the client's needs.
Direct business development assistance includes ongoing business assessment, which is the process of
evaluating a client's business plan, identifying areas of need, developing a work plan to address those
needs, determine the services needed to move the business plan forward, and identify timeframes for
completion of major tasks. The initial assessment is expected to be completed in cooperation with one
of the service provider organizations, likely SCORE, and will occur upon acceptance to the program;
additional assessments will follow on a quarterly basis or as needed.
Technology Village Business Plan Page 7
6.2 Professional Network and Relationship Support
Networking and relationship support is the active role the program will take to develop connections to
resources that clients might not otherwise have access to as a start-up business; this type of support is
an important aspect ofthe Technology Village program.
The Board and Executive Director will develop a pool of volunteers from the community and service
provider organizations willing to serve as mentors and business counselors for clients of the
Technology Village program. Mentors will be selected, likely with the assistance of SCORE, based on
their experience with the client's industry sector and stage of development. The Executive Director
will meet with mentors on a regular basis to track company development and suggest resources that
will help the mentor best serve the client. The Board of Directors will develop a mechanism to receive
client feedback to ensure the mentor is providing a valuable service to the client.
The Technology Village Board of Directors will develop a broad pool of experienced professionals
that have the technical and business skills needed to support clients. Services for this support will be
negotiated on a pro bono or reduced fee basis with established guidelines for the level of service to be
provided. The incubator will screen service providers, facilitate the interaction between the service
provider and the client, and establish a method to assess client progress and satisfaction.
The program will also develop pools of small advisory boards consisting of business professionals
willing to volunteer as an advisory board member for Technology Village client businesses. The
advisory boards will consist of two to four volunteers with experience and expertise in the client's
specific technology. The advisory boards will agree to meet with incubator clients on a regular
schedule and provide counsel at various stages of businesses development. The Executive Director,
with assistance from the Board of Directors, will screen board members, meet to monitor client
progress, and establish a method to assess client satisfaction.
The Technology Village Board of Directors and Executive Director will work to establish and maintain
a capital and financing network consisting of banks, angel investors, venture capitalists, and corporate
equity investors, brokers, and other personal contacts. The program will introduce clients to this
financing network when the mentor and advisory board determines the client's business is at an
appropriate point and properly prepared to seek financing.
6.3 Educational and Training Programs
Technology Village will work with existing service providers to provide clients with access to a range
of general business related topics that are applicable to any start-up operation, including; financial,
legal, organizational, marketing, insurance, technology commercialization, licensing, etc. The
Executive Director and Board of Directors will use connections to resource partners and service
providers, through marketing efforts and financial assistance, to provide clients of Technology Village
the opportunity to attend educational and training classes offered throughout the southern metropolitan
area. Educational programs will include off-site seminars and training sessions and may include
hosted, on-site seminars based on specific interest to program clients.
The Technology Village subcommittee had an opportunity to meet with representatives from the South
Metro chapter of the Service Corps of Retired Executives (SCORE). SCORE has approximately thirty
volunteers in the south metro who provide mentoring services and advice on all aspects of starting and
Technology Village Business Plan Page 8
growing a business. In addition, SCORE offers a wide variety of classes; including, sessions on how
to start your business, marketing strategies and ideas, financial management of your business,
developing your business plan, and more; beginning in 2012, SCORE plans to begin offering classes in
the Prior Lake — Savage Area schools.
The Technology Village subcommittee was very impressed by the discussion with the SCORE
representatives and the variety of services offered by their organization. The subcommittee feels a
strong relationship between Technology Village and SCORE will be extremely beneficial to both
organizations.
6.4 Facility Based Services
Facility based services include flexible leases and other site based services that are included in the
basic rental agreement. The Technology Village program will provide access to office space that
includes telephone, local area network, high-speed internet access, and basic office furnishings.
Technology Village clients will have access to shared conference rooms, printer/copy machine,
restrooms, and a kitchen/lounge. Costs associated with janitorial service, landscaping, parking,
property taxes, utilities, basic office supplies, property insurance, and program administration are
included in the proposed rental rate.
The Board of Directors has the responsibility of ensuring the overall financial viability of the program
and will determine rental rates. Initial program rental rates are assumed to be $15.00 per square feet of
lease space for the hard-walled office areas and $12.00 per square foot for the open work station area.
As stated above, all facility based service costs will be included in the proposed rental rate.
While many incubators charge below market rent, others charge market rate or higher. Higher rental
rates underscore the value of added services clients receive as well as reduce subsidy required for
incubator operations. This plan's financial analysis has conservatively estimated that rents will
initially be offered at below-market rental rates for comparable space. Rental rates will escalate on a
planned schedule over the lease term. Escalating rental rates not only reduce the amount of subsidy
required to operate the program, but they are also intended to foster client orientation toward growth
and graduation.
7.0 MARKETING, PUBLIC RELATIONS, AND CLIENT RECRUITMENT
The potential success of the Technology Village program will depend largely on the effort and
resources that are dedicated to marketing. The primary marketing focus will be to attract new clients
to Technology Village. However, effective marketing also has additional benefits, such as attracting
service providers and program sponsors to Technology Village and helping establish and maintain
Technology Village's reputation and status in the community as an important piece of the overall
Economic Development strategy for Prior Lake.
7.1 Marketing and Public Relations Plan
The majority of the marketing campaign during the initial stages of program development will include
low- and no-cost marketing strategies; such as capitalizing on networking opportunities at Chamber of
Commerce and other community and regional events. The Technology Village subcommittee will
develop a"hot sheet" which will be provided to City staff, elected officials, service providers and key
Technology Village Business Plan Page 9
stakeholders that will summarize the Technology Village program and highlight significant program
features to be used for reference during these networking opportunities.
The marketing campaign will also utilize existing City of Prior Lake and other community group
websites and newsletters, press releases will also be issued by the Executive Director to provide
information to the public which will likely result in the Technology Village program receiving
coverage in local newspapers. All resources that may shed a positive light on the Technology Village
program and the City of Prior Lake's effort to assist in the development of new businesses and the
creation of desirable employment opportunities for its residents will be explored as a potential
marketing strategy.
There will be some cost associated with marketing in the early stages, such as website development,
logo design, and print advertising in the form of brochures, business cards, or other promotional
materials. The Board of Directors will attempt to work with service providers to co-promote services
and share in this marketing cost.
The Technology Village subcommittee has proposed to develop a logo (brand) for the Technology
Village program which incorporates a new Technology Village logo with the existing City of Prior
Lake logo. Once the new logo has been approved, this brand will be used for program letterhead,
business cards, website, and other promotional materials. The subcommittee's proposed logo designs
are attached as Appendix C for reference.
7.2 Website Development
The Technology Village subcommittee was successful in reserving the domain name
www.technologvvillage.net. The possible content for the Technology Village website is endless; the
proposed content at program implementation will include:
• Program's history;
• Mission statement;
• Photographs of the facility, conference rooms, office space, building exterior, etc.;
• Primary staff contact information;
• Board of Directors biographies;
• Links to service provider websites (for those that provide low- and no-cost services to
Technology Village clients), including contact information and promotional materials
• Downloadable brochures and promotional material; and
• Program Application for Admission.
Once the Technology Village program is more established the website will include information related
to the economic impact client businesses have had on the region, Technology Village client success
stories, a press room with links to related newspaper articles and program press releases, and links to
Technology Village client websites.
7.3 Client Recruitment Strategy
In order for the Technology Village program to prove successful, the Executive Director and Board of
Directors will need to effectively recruit clients to the program. Potential clients will be recruited
through a variety of efforts, which will include direct marketing with the development of promotional
materials to be mailed to regional professional associations, universities, and specific targeted
Technology Village Business Plan Page 10
industries. These promotional materials will highlight the facility and its technology capabilities along
with the business assistance services and mentoring programs available. Technology Village will also
utilize existing newsletters, such as The Wavelength, the Economic Development Advisory
Committee's Ciry of Prior Lake Business Pages, or the Prior Lake Chamber of Commerce's Chamber
News to provide information related to the services available through the program.
The Technology Village subcommittee also plans to capitalize on the City of Prior Lake's positive
relationship with the local Chamber of Commerce to ensure all chamber members are aware of and are
provided with program literature and marketing materials.
H.O CLIENT APPLICATION, SELECTION, AND GRADUATION PROCESS
Client selection and graduation are critical to the success of the Technology Village program. The
screening process should be customized to meet the Technology Village mission and ensure the
selected businesses will benefit from the services provided through the program.
8.1 Application Process
The proposed application process for prospective Technology Village clients involves two to three
steps and the entire application process should be completed within five to seven business days.
Step l: Complete Application - All prospective clients will complete a brief application form. A
completed application provides the Executive Director with a brief description of the applicant's
current business status and a preliminary sense of the applicant's service and facility needs. The
application also includes the submission of a business plan (if available) and business summary,
company and project literature, and management team biographies; the preliminary application is
attached as Appendix B.
Step 2: Review of Application, Business Description, and/or Business Plan - The Executive Director
and a board member with expertise in the applicant's industry will review the application and
documents submitted by the prospective client. The business description and business plan should
provide more in-depth information about the stage of business development, the management team,
market potential, and probability of success.
If the business description and/or business plan adequately addresses the screening criteria established
by the Board, the Executive Director can approve the applicant for acceptance and inform the Board.
If the Executive Director needs additional assistance to determine if approval is appropriate for an
applicant, an additional step would be added. The additional step involves a brief presentation to an
incubator panel as described below.
Step 3: Present to Incubator Panel — If the Executive Director determines Step 3 is necessary the
prospective client will present their business case to a small panel of three to four people comprised of
Board members, appropriate industry experts, and the Executive Director. The panel's role is to assist
the Executive Director in understanding the business and determining if the applicant should be
approved for acceptance into the Technology Village program. Based on the panel's input, the
Executive Director will make a decision regarding acceptance and inform the Board.
Technology Village Business Plan Page 11
8.2 Selection
To determine which business start-ups fit the preferred focus of the Technology Village plan and to
help identify which companies have a strong potential to succeed, the following eligibility
requirements were drafted by the Technology Village subcommittee after review of best practices of
existing incubator organizations. The proposed eligibility requirements are subject to review and
modification by the Board of Directors.
• The applicant must be in target industry as identified by the Technology Village Board of
Directors.
• The applicant must be in the early stages of business development (first three years). Small
companies involved in a significant change in direction or launching a new business product
are also eligible to apply.
• The applicant must be a for-profit business with growth potential.
• The applicant must demonstrate strong market for products and services.
• The applicant must have potential for positive economic impact on the community through:
o A technology, product, or service deemed to have a high marketplace potential.
o A potential for company growth and the associated creation of well-paying jobs within
Prior Lake or surrounding Scott County communities.
• The applicant must have a product or service that can be commercialized within the time set
forth in the lease agreement.
• The applicant must plan to remain headquartered within the City of Prior Lake or Scott County.
• The applicant must have a written description of the business; a draft business plan, including a
draft financial forecast is desired.
• The applicant must show ability to pay incubator rents while they develop positive cash flow.
• The applicant must have a management team that the Executive Director feels can handle the
technical aspects of the business. The management team should have entrepreneurial business
acumen or be willing to accept advice from an established Technology Village advisory board.
• The applicant must desire to take advantage of and be able to benefit from the value-added
services and guidance provided through the Technology Village program. The applicant
business must be willing to take advice from the professional network and/or the Executive
Director.
This business plan notes the proposed eligibility requirements above were designed for clients who
will physically be located within the Technology Village facility. As stated above, the Executive
Director and Board of Directors will work very diligently within their network of service providers to
offer educational opportunities, provide mentoring and business assistance, monitor progress, and
provide the necessary business development resources through a virtual incubator styled program for
any client interested in participating in the Technology Village program, even if the client does not
meet the preferred eligibility requirements above.
The City of Prior Lake Economic Development Authority and the Technology Village subcommittee
will provide the necessary assistance to any client interested in establishing or growing their business
within the City of Prior Lake. This preferred focus criteria should not be viewed to discourage
potential Technology Village clients or restrict program benefits to only those businesses housed
within the physical Technology Village facility.
Technology Village Business Plan Page 12
8.3 Graduation Policy
Graduation policies, based on a set of graduation criteria established by the Board, will be written into
tenant lease agreements. Graduation criteria will include reaching milestones such as establishing a
complete management team, acquiring investments or financing to accommodate the next stage of
business, achieving annual sales goals, being acquired by a larger company, or growing to a point that
exceeds the capacity of the program. The graduation criteria will give companies concrete goals and
help ensure they will be ready for life outside the incubator when it's time to graduate.
Although the Board will set a recommended amount of time a client may receive services at three
years, this term may be customized by type of business and extended on a month-to-month basis for
one additional year if approved by the Board of Directors. The Technology Village subcommittee is
aware that all companies do not develop at the same pace and companies will enter the program at
different stages of development. One company may take three or more years to develop, while another
company may want an accelerated timetable, such as eighteen months or less. The Technology Village
subcommittee and Board of Directors will want to ensure the company will be ready to bring their
technology to market at the time of graduation so the graduation policy will be flexible enough to
allow the incubator to accelerate or delay graduation on a case by case basis.
The Technology Village program will assess its ability to provide value to a client. Clients who have
progressed beyond the program's ability to provide sufficient value should graduate and begin using
private sector providers. Business development assessments between the advisory board and client
will be the basis for this assessment.
9.0 STAFFING PLAN
At start-up, Phase I staffing will be accomplished with existing City of Prior Lake staff. Dan Rogness,
Community and Economic Development Director for the City of Prior Lake, will serve as the Interim
Executive Director. The Interim Executive Director will be assisted by Prior Lake Community
Development staff and existing City of Prior Lake support staff. Additionally, members of the Board
of Directors will take a more "hands-on" approach to assist in the program's staffing needs during
Phase I. The Interim Executive Director and city staff will coordinate and provide services to client
businesses, cultivate resource networks, manage facility development, and manage ongoing operations.
Subsequent increases in staffing hours and levels will depend on program success, increases in
workload, and funding availability. It is anticipated that Phase II of the program would involve hiring
a full-time Executive Director position and would likely include the hiring of a part- or full-time
administrative support position.
Should the Technology Village program prove successful, a full-time, on-site Executive Director may
be hired in year three or four to manage the operations of the incubator and provide direct business
assistance to clients. The Executive Director must be experienced in technology start-ups, have a well-
rounded understanding of business management, leadership ability, and interpersonal skills. A strong
Executive Director will develop a network of venture capitalists, angel investors, and bankers to
support new venture financing. The ideal Executive Director would be well connected to professional
and technical knowledge networks in the community and would develop a strong network of service
providers that provide expert assistance to incubator clients. If recruited from outside the area, this
person must have credibility to rapidly establish those networks and enhance community support.
Technology Village Business Plan Page 13
The part- or full-time Administrative Assistant would answer telephones, greet visitors, provide
administrative support to clients, and maintain equipment and supplies. Based on the number of
tenants projected, this would likely begin as a part-time position in year three or four and could
increase over time as tenant occupancy and revenues increase.
lO.O FACILITY
The business plan recommends Phase I of the Technology Village program would initially be housed
on the main floor of Prior Lake City Hall within an approximate 2,000 square foot area. The proposed
site (Attached as Appendix A) provides five hard walled offices, a large conference room, and a large
open office area which will be furnished with cubicles and work stations. The mixture of hard walled
office and open work space allows the area to be creatively structured to take maximum advantage of
its location.
Client space would consist of five hard-walled offices ranging from 126 to 186 square feet, a 775
square foot open cubicle/work station space, and a 264 square foot conference room. Common areas
within the proposed site include hallways and one meeting/conference room. Clients of the program
will also have shared access to City Hall restrooms, the City Hall cafeteria/break room, parking, and
reception area.
Suite Square Feet (est.) Description
C 102 180 Office
C 103 264 Conference Room
C 104 155 Office
C 105 126 Office
C 106 ] 26 Office
C 108 186 Office
C 1 l 1 775 Open Office
N/A 197 Hallway
Total 2,009
Although many studies and industry literature indicate an incubator size of 30,000 square feet is
typically required for incubators to achieve self-sufficiency. The proposed site, consisting of
approximately 2,000 square feet, was determined by considering several factors: i) proximity to
program administration, ii) subsidized costs for lease of existing office space, iii) existing shared
services available with the City of Prior Lake, and iv) minimal financial start-up costs. If the
Technology Village program is successful, Phase II will identify additional space in existing office
buildings throughout the City of Priar Lake at locations yet to be determined; additional financial
commitments would be anticipated for Phase 11 implementation.
11.0 BUDGET AND FINANCIAL
The budget presented in this plan includes a facility development budget, an estimate of start-up capital
expenditures, and a preliminary operating budget for years one through three of Technology Village
operations.
Technology Village Business Plan Page 14
1L1 Facility Development Budget
The facility development budget is estimated at $3,850 and includes construction of a demising wall
within the existing office space, installation of one door, relocation of key card access readers, signage,
installation of a storage cabinet or other item to secure private property within the facility, and
electrical repairs.
ITEM ESTIMATED
EXPENSE
Deminsing Wall Construction $900
Door $650
Key Card Access Readers $600
Signage $600
Storage Locker (secure equipment) $600
Electrical $500
Total Estimated Facility Development Costs $3,850
11.2 Capital Expenditures
The capital expenditures estimate of $38,200 represents a one-time expense associated with program
start-up costs.
ITEM ESTIMATED
EXPENSE
Administrative Equipment
5 computers, fax machine, existing printer, existing $7,000
scanner, software, etc.
Furniture/Furnishings
5 desks, 10 chairs, 5 file cabinets, shelving, $20,000
existing conference tables, AV equipment, white
boards, reception furnishing, etc.
Break Room (existing)
Kitchen appliances, tables, chairs, etc. $�
Telephone System
Equipment, switch, phones, install and configure, $1,200
etc.
Network Wiring $2,500
Network Equipment $5,000
Server, router and hub, install and configure, etc.
Internet Access $2,500
Firewall, cabling, install and configure, etc.
TOTAL Estimated Capital Expenditures $38,200
Technology Village eusiness Plan Page 15
11.3 Operating Budget
The estimated operating budget identifies a shortfall of $35,425 over the first three years of operation.
THREE YEAR OPERATING BUDGET
REVENUE Year 1 Year 2 Year 3
Incubator client rents $6,075 $12,150 $16,200
Service fees $0 $400 $600
Total Revenue $6,075 $12,550 $16,800
EXPENSES Year 1 Year 2 Year 3
Subscriptions (NBIA Membership) $1,000 $1,000 $1,000
Business assistance offerings $608 $1,215 $1,620
(10% of Rental Rates)
Marketing/PR $2,500 $1,500 $1,500
Office supplies/printing $500 $500 $500
Postage/shipping $0 $0 $0
Telephone/fax/internet $500 $500 $500
Property Tax Payment $0 $0 $3,500
Facility Development Costs $3,850 $500 $500
Capital Expenditures $38,200 $0 $0
Other Cxpenses (misc.) $500 $500 $500
Total Expenses $47,658 $5,715 $9,620
Net Income/Loss (��1,583) $6,835 $7,180
Technology Village Business Plan Page 16
11.4 Operating Budget Assumptions
Rental rates and occupancy assumptions for the 2,009 square feet space dedicated to the Technology
Village program include: approximately 509 square feet dedicated to common areas such as hallways
and conference room; occupancy assumes 1,500 total square feet dedicated to leasable client space.
Proposed rental rates are $15.00 per square foot of lease space for the hard-walled office areas and
$12.00 per square foot for the open work station area.
Incubator Clients Year 1 Year 2 Year 3
Number of Clients 2 4 5
Percent of Space Leased 30% 60% 80%
Square Feet of Space Leased
(assumed 50% hard-walled 450 900 1,200
and 50% cubicle)
Rental Rate per Square Foot
($15/sq. ft. for hard-walled $3,375 $6,750 $9,000
office space)
Rental Rate per Square Foot
($12/sq. ft. for work station / $2,700 $5,400 $7,200
cubicle space)
Annual Rental Revenue $6,075 $12,150 $16,200
(est.)
11.5 City of Prior Lake In-Kind Contributions
In addition to the capital and operational expenses identified above, the City of Prior Lake will be
providing in-kind services to the Technology Village program through City costs already provided for,
including: a portion of city staff time dedicated to the program and facility costs related to property
insurance, janitorial service, grounds maintenance, building maintenance and repairs, office equipment
maintenance, trash removal and utilities.
12.0 FUNDING SOURCES
Funding is required to develop the incubatar facility, fund start-up expenses, and subsidize the early
years of incubator operations. The Technology Village subcommittee anticipated that all, or a
majority, of the start-up funding costs will be provided by the Prior Lake Economic Development
Authority. During the planning and recommendation process, the subcommittee identified additional
sources that may participate in program funding.
Identified potential funding sources for Technology Village program development included excess tax
increment financing revenues, EDA revolving loan fund (State and Federal), EDA levy, private
corporate support or program sponsorship, or an equity pledge investment fund whereby client
Technology Village Business Plan Page 17
businesses would pledge a very small percentage of their equity to Technology Village. These
potential funding sources will be further explored during the implementation phases as it is likely
additional funding will be required to move to Phase II and Phase III implementation.
13.0 SUCCESS CRITERIA
A formal progress evaluation of the Technology Village program will be completed every six months
and reports will be provided to the Board of Directors and the Economic Development Authority.
Performance indicators for the program will be reviewed and approved by the Board and it is
anticipated these indicators will be modified as the program evolves; suggested indicators include:
• The number of clients within the incubator;
• Evaluation of services by incubator clients;
• Growth in the number of applicants;
• The number of companies that successfully graduate as measured against the target established
by the Board;
• The number of jobs created on an annual basis within the incubator;
• The percentage of incubator graduates that stay in the community;
• The calculation of tax revenues generated by technology incubator clients and graduates;
• The level of community support for Technology Village; and
• The capital raised by companies being served.
14.0 NEXT STEPS
This business plan identifies the implementation steps and financial contributions necessary to execute
Phase I of the Technology Village incubator program. Upon approval of the EDA, it is anticipated that
the City of Prior Lake will take the necessary steps to prepare the Technology Village space within
City Hall following the successful approval of a minimum of two Technology Village clients. The
subcommittee feels it can complete the tasks identified herein and recruit eligible Technology Village
clients by a targeted "grand opening" date of October 1, 2012.
Following presentation of this business plan to the City of Prior Lake Economic Development
Authority, the Technology Village subcommittee will make revisions to the plan as directed by the
EDA and the Technology Village planning phase will be complete.
Technology Village Business Plan Page 18
APPENDIX A
Proposed Technology Village Floor Plan
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Technology Village Business Plan Page 19
APPENDIX B
Sample Tenant Application Form
Technology Village
Application for Admission
Information submitted will be held in confidence
Business Name:
Principals and Titles:
Addresses:
Telephone: CeIL•
E-Mail:
Form of Ownership: Corporation Partnership Sole Proprietor
Company form (GCorp, S-Corp, LLC, etc.):
Nature of business - include a brief description of product/service and nature of market. Submit
product brochures and company literature, if available.
Brief background of Principal Officer(s); please attach resume:
Date Business was established:
Current status or stage of development of Business (e.g., working on prototype, product in advanced
development, etc.):
Current sales revenue (dollar volume per month): $
Number of employees (include principals): Full-Time Part-Time
Projected number of employees within 12 months: Full-Time Part-Time
Projected number of employees within 24 months: Full-Time Part-Time
Technofogy Village Business Plan Page 20
Type of financing used to operate Business to-date:
Venture Capital Firms
Private Investors
Personal Resources
Other (indicate nature):
Status of Business Plan:
Completed (please attach a copy)
In Preparation & Available by:
Not Yet Started
Would you like help in writing a business plan? Yes No
Approximate square feet of space requirements:
Type of space (i.e. number of offices, open space area, cubicle, etc.):
Any special facility requirements such as electrical, security, technology, etc. If yes, please specify:
Other relevant information:
Applicant Name(s):
Title(s):
Signature(s):
Date:
NOTE:
Please attach or mail a business plan and summary, company and project literature, and management
team biographies to:
Technology Village
Attn: Dan Rogness
4646 Dakota Street SE
Prior Lake, MN 55372
Technology Village Business Plan Page 21
APPENDIX C
Sample Technology Village Logos
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Technology Village Business Plan Page 22
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Prior Lake. MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2012
AGENDA #: 5.0
PREPARED BY: Dan Rogness, Community & Economic Development Director
AGENDA ITEM: ECONOMIC DEVELOPMENT POLICY FOR DEERFIELD AND WELCOME IN-
DUSTRIAL PARKS
DISCUSSION: Introduction
Since the city has approved the new Revolving Loan Fund Guidelines, and dis-
cussion is now underway about the future use of TIF 1-1 funds, staff developed
a business assistance matrix showing a comprehensive list of available funding
sources for economic development. In addition, staff proposed a target area as
key locations for industrial growth, including Deerfield and Welcome Avenue.
History
The Prior Lake EDA discussed the Business Assistance Matrix on May 14, 2012
and directed staff to initially develop a policy targeting the two industrial parks.
Staff has developed a draft policy (see attachment) for EDA discussion. This
policy directs future city actions toward helping achieve economic development
objectives related to additional jobs, businesses and tax base.
Conclusion
The EDA should establish a policy that supports the future development and re-
development at Deerfield and Welcome Avenue Industrial Parks. The past
downturn in the economy has not helped with development. In addition, staff is
aware that developers appear to be most interested in commercial and industrial
opportunities in the northern CR 42 corridor of Prior Lake. Therefore, it is im-
portant to consider city assistance to help development occur in the southeast
part of the city where industrial lots are available and ready for development.
ISSUES: The city will be establishing a new policy that requires staff and financial re-
sources in order to achieve success.
FINANCIAL Resources as identified in the proposed Policy.
IMPACT:
ALTERNATIVES: 1. Approve the policy with or without amendments identified by the EDA.
2. Continue discussion to a future meeting.
3. Take no action.
RECOMMENDED As determined by the EDA
MOTION:
ECONOMIC DEVELOPMENT POLICY
DEERFIELD AND WELCOME AVENUE INDUSTRIAL PARKS
Prior Lake, Minnesota
Draft #1-lune 5, 2U12
Purpose:
Economic development is a high priority of the Prior Lake City Council. The City of Prior Lake, through
its Economic Development Authority (EDA), has developed initiatives that will help add businesses, !
jobs and tax base to the community. One such initiative is to assist the property owners of two ,
industrial parks to create opportunities for development on vacant land, primarily in Deer#ield ,
Industrial Park. The EDA is also wants to assist with the redevelopment of underutilrzed industrial !
sites, primarily in Welcome Avenue Industrial Park,
Deerfield Industrial:
The following summary describes all property within Deerfield zoned Industrial or Business Park, not
including the Svoboda site (which is guided for commercial):
o Total developed property = 14 acres {32%)
o Total undeveloped property = 30 acres (68%)
o Total property (rounded} = 44 acres
7he summary above is further divided into the two zoning categaries of Industrial and Business Park
and commercial:
• Developed industrial property = 9 acres
• Undeveloped industrial property = 18 acres
• Total industrial property = 27 acres
• Developed business park land = 5 acres
• Undeveloped business park land - 12 acres
• Total business park property - 17 acres
Vacant undevelaped industrial and business park property in Deerfield is further broken down into
"pad-ready", which refers to property that can be purchased easily by someone to build a project by
submitting a building permit application. There are no zoning, platting, street or utility issues to deal
with ahead of time:
• 13 acres is pad-ready
• 27 acres is nearfy pad-ready (outlots need to be platted to lots}
The existing potential buifding space is summarized below based on an assumption that 15% of a site
will become building space, and 1.S employees wil( work in that space for every 1,000 square feet;
• Existing total building space -- 84,500 square feet (27%)
• Potential new building space = 225,000 square feet (73%) '
• Total future est. building space = 309,500 square feet
Welcome Avenue industrial:
The following summary describes all property within Welcome, which is zoned Industriai:
o Total developed property - 38 acres (88%) ,
o Total undeveloped property = 5 acres (12%} :
o Total property (rounded) - 43 acres
EDA 5trategies to Help Create Development Opportunities: '
1. Determine ways to improve the overall image of this industrial area along CR 21 by enhancing
the visual entrance image from the east.
2. Evaluate options to improve transportation and access; examples include constructing a new
intersection at CR 21, CR 87 and 170 Street, and providing urban streets throughout Welcome
Avenue.
3. Explore locations and sign ordinance amendments that can accommodate monument signage
for both industriaf parks along CR 21.
4. Target public financing assistance to support businesses that crea#e adequate (evels of jobs and
tax base.
5. Assist with marketing efforts related to both industria( parks.
6. Work with property owners in Welcome Avenue to achieve future land uses tha# have a higher
tax/market value and that generate job creation {i,e., new industrial building vs. existing
outside storage),
Public Financing Assistance:
Prior Lake will target public financing assistance based on the following general guidelines. The key
factor in all negotiations for financing is that a partnership is created between the EDA, property owner
and developer. This means there will be full open disclasure on costs associated with vacant property '
(e.g., assessments and fees), the proposed sales price of property at a fair market value, and the
proposed projeet benefits related to jobs and tax base.
1. Tax Increment Financin� (TIF): The city will support the use of TIF as an important economic
development tool in both industrial park areas for new development and redevelopment. TIF
will be evaluated on a case-by-case basis for each proposed industrial project based on the
city's TiF Policy. TIF is typically used to help pay costs associated with land acquisition, pubic
infrastructure and site improvements. The type of TiF District to be created is an "Economic
Development" District, established for up to ten years. The Municipal Development District
boundaries to support the use of TIF is established as the city limits.
2, Tax Abatement: The city will support the use of Tax Abatements as an important economic
development too! in both industrial park areas for new development and redevelopment. Tax
abatement will be evalua#ed on a case-by-case basis for each proposed industrial project based
on the city's Tax Abatement Policy (to be developed). Tax Abatement can be used for a broad
range of uses based on a local determination of public benefits, but it is typically used to help ',
pay costs associated with public infrastructure and redevelopment. The city's portion of
property taxes is captured to pay eligible costs up to fifteen years. i
3. Citv Fees: The city will evaluate its fees that are associated with the development of industrial
property, and determine whether any fees can be deferred to support economic development
in both industrial park areas for new development and redevelopment. An example includes
the city's park dedication fee per acre for commercial/industrial property.
4. Citv Assessments: The city will evaluate the use of special assessments {MN Chapter 429) as a
way for a property owner to pay certain development costs using the city's bonding authority.
Using an assessment method, the property owner can finance those costs at a lower interest
rate over a specified time period, which is typicalfy ten years. The special assessment is added '
ta the property's annual tax statement.
Deerfield & Welcome Industrial Park Vacant Land Summary
Prior Lake, MN
Pay 2013 Pay 2013 Pay 2013
County Est. EMV EMV
I,ot Acres Ownership Market Value Per Acre Per Sq.Ft.
DEERFIELD:
18 1.54 Prior Lake State Bank $185,000 $120,130 $2.76
20 7.07 Mesenbrink $660,000 $93,352 $2.14
5 2.00 J. Sexe $325,000 $162,500 $3.73
6 2.61 Mesenbrink $300,000 $114,943 $2.64
8 1.00 Busse $160,000 $160,000 $3.67
9 1.21 Mesenbrink $160,000 $132,231 $3.04
11 2.70 Mesenbrink $265,000 $98,148 $2.25
23 5.73 Mesenbrink $560,000 $97,731 $2.24
19 1.00 Tupy/Kowatski $160,000 $160,000 $3.67
13 2.00 Mesenbrink $195,000 $97,500 $2.24
3 1.50 Mog Holdings $240,000 $160,000 $3.67
1 1.51 Credit Union $160,000 $105,960 $2.43
29.87 TOTALS/AVERAGES $3,370,000 $112,822 $2.59
WELCOME:
57 1.00 Berens $10Q,Q00 $100,000 $2.30
58 1.35 Clausen $125,000 $92,593 $2.13
59 1.28 Berens $125,000 $97,656 $2.24
60 1.12 Mickelson $125,000 $111,607 $2.56
4.75 TOTALS/AVERAGES $475,000 $100,000 $2.30
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v �" 4646 Dakota Street SE
Prior Lake_ MN 55372
`�
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2012
AGENDA #: 6.A (1) (2) (3)
PREPARED BY: Dan Rogness, Community & Economic Development Director
AGENDA ITEM: EDAC AND EDA SUBCOMMITTEE REPORTS
DISCUSSION: EDAC Report
The EDAC met on May 24 with a quorum present. Bill Henry will be at this EDA
meeting to give an update on that meeting, which included the following items:
(1) business friendly subcommittee report; (2) South Downtown Study update;
(3) CR 21 speed limit study discussion; (4) downtown bus stop location discus-
sion; and (5) EDA updates. The next regular meeting will be June 28.
Broadband Fiber Network Subcommittee Report
The subcommittee's work with Eric Lampland of Lookout Point Communications
received a 1-month extension through June. Therefore, it continues to meet
through June 14 with a presentation to the EDA scheduled on June 21. The
subcommittee has selected a"hybrid model" for the service structure, whereby
the city provides basic triple-play services, and other service providers can pro-
vide all other services through open access. The report will identify and analyze
two other models as well. The EDA may want to discuss whether others should
be present at this presentation or future presentations. For example, EDAC,
Chamber of Commerce, or School District representatives.
Technoloqy Villaqe Subcommittee Report
This subcommittee met most recently on June 1. They reviewed a final draft
business plan that focuses their strategy on three stages, including: (1) Stage 1
starts with 2,000 square feet of space in City Hall; (2) Stage 2 expands to space
in existing commercial office buildings; and (3) Stage 3 results in a future large
Technology Village. The subcommittee will present its business plan to the EDA
at this meeting. Michelle Choudek is now serving as chair of the subcommittee.
ISSUES: None
FINANCIAL No additional budget impact at this time.
I M PACT:
ALTERNATIVES: 1. (no alternatives are provided at this time)
RECOMMENDED Discussion only.
MOTION:
O � PRIp
H �
v �'' 4646 Dakota Street SE
Prior Lake_ MN 55372
�SD�
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2012
AGENDA #: 6.B
PREPARED BY: Dan Rogness, Community & Economic Development Director
AGENDA ITEM: DOWNTOWN REDEVELOPMENT ACQUISITION OPPORTUNITIES
DISCUSSION: Introduction
Two downtown property owners have contacted city staff within the past month
inquiring about the city's interest in purchasing those properties. Identified in
Attachment A, these two residential properties are located at 4664 Dakota Street
(home next to the Rotary Gateway to Lakefront Park) and 16323 Main Avenue
(white house at the north east quadrant of Main and Pleasant). The first house
on Dakota is owner occupied while the second house on Main is renter occupied
(month-to-month lease). Staff is asking the EDA if it has an interest in further
evaluation of potential acquisition of one or both properties with the goal of en-
hancing redevelopment opportunities in the downtown area
History
Downtown redevelopment opportunities can include "friendly" acquisitions of un-
derutilized properties. Often, this includes older residential property that will
eventually be redeveloped to a commercial or institutional use. Prior Lake has
been involved in previous downtown property acquisitions, including the site for
City Hall and public parking lots, and it sold property for an office building. The
source of funding for this activity would include the fund balance of nearly
$200,000 in TIF 1-1, pending a future modification approved by the City Council.
Conclusion
The EDA should evaluate these two potential public acquisitions in downtown
Prior Lake based on the following criteria:
1. Does acquisition of one or more of these sites meet a public purpose? In
this case, the city would be "land banking" property for future commer-
cial, institutional, or public redevelopment opportunities at key locations.
Removing blighted or underutilized structures is often viewed as a public
purpose for municipal government.
2. Does downtown property acquisition meet a key strategy of the EDA? In
the draft EDA Business Plan, redevelopment is a strategy for economic
development. In this case, the EDA may want to discuss concentrated
versus scattered downtown property acquisition as most appropriate for
its downtown redevelopment strategy.
3. What is the cost and associated risk of downtown property acquisition?
Cost is based on the property's fair market value (typically obtained from
an independent appraisal), demolition (typically $15,000 per house), and
annual property maintenance. Risk includes unknown property issues,
such as poor soils or underground contamination, as well as having va-
cant property
ISSUES: If TIF 1-1 funds are ultimately used to acquire one or both sites, the EDA will
have committed those funds in the downtown area in 2012. Other opportunities
will then not have the same funding source available.
FINANCIAL The TIF 1-1 balance will provide public resources to assist with appraisals (esti-
IMPACT: mated at $1,200 per property) and redevelopment costs. Acquiring both sites
will require additional resources beyond TIF 1-1.
ALTERNATIVES: 1. Direct staff to secure appraisals on one or both downtown properties, and
then to use that information to develop a corresponding budget to be brought
back to the EDA.
2. Establish a maximum total cost the EDA is willing to pay for both properties
and direct the staff to secure them for that amount or not at all.
3. Continue discussion to a future meeting.
4. Direct staff to take no further action to acquire these properties.
RECOMMENDED Alternative #1 or #2.
MOTION:
Attachment A
PARCEL IDENTIFICATION FOR REDEVELOPMENT ACQUISITIONS
DOWNTOWN PRIOR LAKE
PID # Address Description
250010550 4664 Dakota Street SE Second house east of City Hall (on north side)
Owner: Steven Skaja Lot area = 7,500 Sq. Ft. or 0.172 acre
House built in 1929; 2 BR / 1.75 Bath
Pay 2013 Co. Market Value =$113,300 ($50,000 land)
Total value per Sq. Ft. _$15.10
250020030 16323 Main Ave. Rental house behind Fong's Restaurant
Owner: Robert/Carol Johnson Lot area = 20,500 Sq. Ft. or 0.471 acre
Lot area includes 9,590 Sq. Ft. for Pleasant Street
House built in 1900; 4 BR / 1.0 Bath
Pay 2013 Co. Market Value =$119,000 ($65,000 land)
Total value per Sq. Ft. _$10.90 (not including street)
� � � ��_ ^V � T � - ^` � PRIOR LAKE DEVELOPMENT
�
�, � ��- ��
� ' ���� ��� REVIEW COMMITTEE MEETING
";� � ��;o � ..: `�„ � 3
F , . y a � t � _:a
�n" .x £ , i v � f y �.
�. �.
e� �� � t,���' �S f' f 6/7/12 9:00 AM TO 10:00 AM
� ..� .�-�' � - � �; PRIOR LAKE CITY HALL
�� ���'�.. �a:"� �
��`� ���"�` � " WAGON BRIDGE CONFERENCE ROOM
JEFF MATZKE Type of REGULAR DRC
Meeting:
Attendees: ALL DRC MEMBERS
AGENDA TOPICS
• Review Status Chart All DRC Members 9:00 AM to 9:20 AM
• Communication Antennas — Discuss All DRC Members 9:20 AM to 9:30 AM
Cit rocess
• Utility Outlots- residential setbacks All DRC Members 9:30 AM to 9:40 AM
(continued discussion)
• As May Be Presented by Members All DRC Members 9:40 AM to 10:00 AM
Larry Poppler
From: Larry Poppler
Sent: Tuesday, May 08, 2012 1:37 PM
To: millerfest@aol.com
Cc: Jeff Matzke
Subject: Bluffs of Candy Cove Interim Grading Plan
Attachments: 111017 review memo.docx; EXHIBIT F PERMIT TO PROCEED.pdf
Jason,
Thank you for submitting a revised interim grading plan. In general the plan is acceptable. I have a few comments to
the plan for your consideration.
1. The retaining wall heights should be shown with top and bottom wall elevations.
2. Please show the location of the existing retaining walls for the neighboring property as a darker text so that their
location is easily identified.
3. The permanent easement line as approved should be shown on the City parcel.
4. At the Developer's option, grades could be steepened within the temporary and permanent easement location
to 3:1 (if non-mowable). This would minimize wall heights.
5. At the Developer's option, the access drive could be steepened west of the 958 contour to minimize wall
heights.
The changes as you are proposing should be incorporated in not only the interim grading plan, but the overall final
grading plan. A revised landscape plan and erosion control plan should also be provided to show landscaping proposed
along the access. These plans should be submitted to be incorporated as the final stamped approved plans for the
project. I have also attached the project review memo from October. The memo details final issues related to the
overall project and should be completed for the final plans. Jeff Matzke may have other comments from our previous
review. Ultimately the goal is to address the latest comments and get final design plans.
Since we are getting close to starting work. I have attached Exhibit F from the Public Works Design Manual. This is a
checklist which shows all the authorizations which might apply to a project. In your case a number of the authorizations
are not required and most of the remaining authorizations are completed. The City will fill this out once the final plans
are ready and stamped, contractor has been selected, preconstruction meeting is completed, and the plat and
development contract is filed.
It is good to see this project moving forward. We are very close to construction. Please call or e-mail me if you have any
additional questions.
Thanks,
Larry Poppler
City Engineer
City of Prior Lake
4646 Dakota Street SE
Prior Lake, MN 55372
952-447-9832
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4646 Dakota Street SE
'�'�vnrESO'��' Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2012
AGENDA #: 6C
PREPARED BY: Jerilyn Erickson, Assistant Treasurer
PRESENTED BY: Jerilyn Erickson
AGENDA ITEM: CONSIDER APPROVAL OF THE 2011 FINANCIAL REPORT FOR THE
ECONOMIC DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND
DISCUSSION: Introduction
The 2011 City of Prior Lake annual financial report was presented to the
City Council on May 21, 2012 by Jim Eichten, Managing Partner of the
auditing firm of Malloy, Montague, Karnowski & Radesovich & Company,
P.A. (MMKR).
Attached to this agenda report are the pertinent pages from the City of Prior
Lake 2011 annual financial report which reflect the activity and balances for
the EDA: 1) Combining Balance Sheet and 2) Combining Statement of
Revenues, Expenditures and Changes in Fund Balances.
Conclusion
If commissioners have questions please feel free to contact me at 952-447-
9841 for more information.
FINANCIAL The December 31, 2011 fund balance for the EDA is $136,063. The
IMPACT: adopted 2012 budget reflects a planned use of fund balance in the amount
of $131,923, leaving a remaining balance of $4,140. This remaining
balance assumes that all budgeted revenues are received and budgeted
expenditures are spent.
The projected fund balance as of 12/31/2012 will be insufficient to support
the operational expenses going forward. Item 6E on today's agenda
addresses future funding of the EDA's operational expenses by utilizing an
EDA property tax levy.
ALTERNATIVES: The following alternatives are available to the EDA:
1. A motion to accept the 2011 Financial Report as submitted.
2. Take no action and provide the staff with specific direction.
RECOMMENDED Alternative 1.
MOTION:
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4646 Dakota Street SE
�'IHxeso'� Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2011
AGENDA #: 6D
PREPARED BY: Jerilyn Erickson, Assistant Treasurer
PRESENTED BY: Jerilyn Erickson
AGENDA ITEM: CONSIDER APPROVAL OF THE 1ST QUARTER FINANCIAL REPORT
FOR THE ECONOMIC DEVELOPMENT AUTHORITY SPECIAL
REVENUEFUND
DISCUSSION: I ntroduction
Staff has prepared a preliminary summary financial report as of March 31,
2012 for the Economic Development Authority Special Revenue Fund. The
report reflects revenue and expenditure activity for the first three months of
2012. The reports are preliminary, unaudited and may change. The
attached memorandum provides a summary of the significant issues.
If commissioners have questions please feel free to contact me at 952-447-
9841 for more information.
ALTERNATIVES: The following alternatives are available to the EDA:
1. A motion to accept the March 31, 2012 Financial Report as submitted.
2. Take no action and provide the staff with specific direction.
RECOMMENDED Alternative 1.
MOTION:
04 PR�p� MEMORANDUM
� � TO: Prior Lake Economic Development Authority
FROM: Jerilyn Erickson, Assistant Treasurer
A��'�hE50S* RE: Financial Report dated 03/31/2012
The financial report presented as part of this agenda item reflects activity for the first three
months of 2012. The significant issues identified at this time are summarized below.
The EDA budget was amended on February 21, 2012 to provide additional resources for
professional services, training and memberships.
Revenues
Revenues reflect a grant received from Scott County CDA for the fiber network study as well as
a transfer of funds from the City's General Fund and interest earnings.
Expenditures
Personnel, commissioner per diems, professional services (for broadband consulting) and
training expenditures comprise the total expenditures.
o� pRt �'P City of Prior Lake
� � Economic Development Authority Special Revenue Fund
As of 03/31/2012
�"�+.ES�'' (Unaudited) Variance with
2012 Amended 2012 Budget - Actual
Budget Budget Actual Positive (Negative) Percent
Revenues
Intergovernmental revenues
33610 County/city aids & grants - 15,000 15,000 - 100%
Miscellaneous revenues
362101nterestearnings 6,000 4,800 639 4,161 13%
39203 Transfers from other funds - 16,000 16,000 - 100%
Total revenues 6,000 35,800 31,639 4,161 88%
Expenditures
Economic development
46500 Economic development 137,923 167,723 59,772 107,951 36%
Total economic development 137,923 167,723 59,772 107,951 36%
Total expenditures 137,923 167,723 59,772 107,951 43%
Net change (131,923) (131,923) (28,133)
Page 1 of 1
o� �' City of Prior Lake
� � Economic Development Authority Special Revenue Fund
� �
As of 03/31 /2012
''•��.Eiot'' (Unaudited) Variance with
2012 Amended 2012 Budget - Actual
Budget Budget Actual Positive (Negative) Percent
Revenues
Intergovernmental revenues
33610 County/city aids & grants - 15,000 15,000 - 100%
Miscellaneous revenues
36210 Interest earnings 6,000 4,800 639 4,161 13%
39203 Transfers from other funds - 16,000 16,000 - 100°/o
Total revenues 6,000 35,800 31,639 4,161 88%
Expenditures
Economic development
46500 Economic development 137,923 167,723 59,772 107,951 36%
Total economic development 137,923 167,723 59,772 107,951 36%
Total expenditures 137,923 167,723 59,772 107,951 43%
Net change (131,923) (131,923) (28,133)
Page 1 of 1
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4646 Dakota Street SE
'��rxESO��' Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 11, 2011
AGENDA #: 6E
PREPARED BY: Jerilyn Erickson, Assistant Treasurer
PRESENTED BY: Jerilyn Erickson
AGENDA ITEM: 2013 BUDGET DISCUSSION — EDA TAX LEVY
DISCUSSION: Introduction
The purpose of this agenda item is to discuss a preliminary 2013 budget
and possible funding sources for the Economic Development Authority
Special Revenue Fund.
Historv
The 2012 EDA budget reflects 50% of the personnel costs associated with
the Economic Development Director position (formerly budgeted in the
General Fund Economic Development Department) as well as other
operational costs such as professional services, training, memberships,
etc. The 2012 EDA budget was funded primarily by using fund balance
reserves. The EDA board recognized that a sustainable funding source
would need to be implemented when considering the 2013 budget.
Current Circumstances
City staff will begin preparing their department budget requests for 2013.
The original 2012 budget included some basic operational expenses which
totaled about $138k. A copy of the approved 2012 EDA Budget is attached
for your information. Staff anticipates that ongoing operational expenses
will be approximately $150k each year. Until there is some solid history of
expenditure activity, this amount may vary.
Conclusion
The EDA should provide direction to staff regarding expenditures and
funding sources for the 2013 budget.
ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget by approved
by the City Council.
A proposed 2013 budget will be presented to the EDA in August. The
proposed budget will be based on direction provided to staff at today's
meeting and subsequent meetings in June and July. Upon approval by the
EDA, the preliminary budget will be presented to the City Council at the
September 10, 2012 meeting.
FINANCIAL There are a number of funding sources that could be considered for
IMPACT: funding the EDA's operational expenses such as:
• Transfer of General Fund reserves;
• Transfer from General Fund tax levy;
• Economic Development Authority tax levy.
As with using the EDA's reserves, utilizing the General Fund reserves is a
short-term solution and doesn't address the long-term, ongoing operational
activities that will be necessary to achieve the economic development
goals. In addition, the City Council may have other planned uses in mind
for the General Fund reserves such as technology upgrades, land
acquisitions, etc; therefore, General Fund reserves may not be available to
fund the EDA's operational expenses.
The City could increase the general tax levy and authorize a transfer of
those revenues to the EDA Fund.
The City could also consider an EDA property tax levy. Per State Statute
469.107 subd. 1, a city may, at the request of the EDA, levy a tax in any
year for the benefit of the authority. The tax must be not more than
0.01813 percent of the taxable market value. The estimated taxable
market value for taxes payable in 2013 is $2,350,346,800; therefore, the
maximum tax levy could be $426,117.
If the City were to consider an EDA levy that is greater than 0.01813
percent of taxable market value, the levy would be subject to reverse
referendum provisions as outlined in State statute 469.107 subd. 2.
All of the above options must also be approved by the City Council.
ALTERNATIVES: The following alternatives are available to the EDA:
1. Provide direction to staff regarding expenditures and funding
sources for preparation of the 2013 proposed budget.
2. Discuss alternatives and provide direction to staff at a later date.
RECOMMENDED Alternative 1.
MOTION:
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PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
DRAFT AGENDA
Monday, July 16, 2012
4:00 p.m,
Reports included with this agenda can be found in the Document Center at www.cityofpriorlake.com
Please follow this file path: City of Prior LakelEconomic Development Authority120121Ju1y 16, 2012
1. CALL TO ORDERIINTRODUCTION
2. APPROVAL OF AGENDA
3. APPROVAL OF MEETING MINUTES
A. June 11, 2012
4. PUBLIC HEARINGS
A. No public hearing is scheduled.
5. OLD BUSINESS
A. Guest Speaker — Gene Goddard, Director of Business Investment, GREATER MSP
B. Economic Development Policy for Deerfield and Welcome Industrial Parks — Draft #2
C. Acquisition of Downtown Properties
6. NEW BUSINESS
A. EDAC Report and Subcommittee Reports:
(1) EDAC
(2) Broadband Fiber Network
(3) Technology Village Incubator
B. 2013 Budget Discussion — EDA Tax Levy
C. Business Inquiry List (through 6/30/12; handed out at the meeting)
7. OTHER BUSINESS
A. Draft August _, 2012 Agenda (August 20 conflicts with a council work session)
8. ADJOURNMENT: 6:00 p.m.
Phone 952.447.9800 / Fa�c 952.447.4245 / www.cityofpriorlake.com