Loading...
HomeMy WebLinkAbout02 13 2012 EDA Minutes4646 Dakota Street SE Prior Lake, MN 55372 1. CALL TO ORDER Economic Development Authority Meeting Minutes February 13, 2012 President Hedberg called the meeting to order at 4:06 p.m. Present were Hedberg, Morris, Choudek and Myser, Executive Director Boyles, Community & Economic Development Director Rogness, and Treasurer Er- ickson. Absent was Hitchcock, who submitted a resignation letter effective February 13, 2012. 2. APPROVAL OF AGENDA MOTION BY MYSER, SECONDED BY MORRIS TO APPROVE THE AGENDA AS PRESENTED. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. 3. APPROVAL OF MEETING MINUTES MOTION BY MYSER, SECONDED BY MORRIS TO APPROVE THE MEETING MINUTES OF JANUARY 9, 2012; MOTION BY MYSER, SECONDED BY MORRIS TO APPROVE THE MEETING MINUTES OF JANU- ARY 23, 2012 VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. 4. PUBLIC HEARING No public hearing was scheduled. 5. OLD BUSINESS A. EDA Budget Amendment. Rogness: explained the proposed EDA 2012 budget amendment that was previously removed from the City Council agenda on February 6. Two fund transfers had occurred from city accounts into the EDA ac- count in 2011 that included two dedicated business revolving loan funds. One related to a $50,000 loan from the city to E.M. Products in 1995, and the second one related to $75,000 loan from the city to NBC Products in 1998. Further investigation into these funds now requires that they be retained by the city in separate dedicated revolving loan funds. In addition, the E.M. Products loan was secured from the state with federal funds, and the NBC Products loan with state funds. Boyles: stated that each loan fund has its own restrictions on eligibility for how funds can be used to assist businesses. The total combined balance of the two funds was $196,392.96 on December 31, 2011. Due to the need to move those funds back out of the EDA's account, staff has proposed a way to amend the EDA and General Fund budgets in order to fully fund the broadband consulting cost of $80,000, the pro- posed Venture Fair event cost of $10,000, and the annual EDA membership of $1,000 for the National Business Incubation Association. Erickson: summarized staff's proposed budget amendment to include: (1) utilize the Scott County CDA grant of $15,000 as revenue for broadband study; (2) transfer $12,000 from General Fund as revenue for broadband study; (3) transfer $4,000 from General Fund as revenue for Venture Fair; (4) reallocate $2,000 from EDA legal divided evenly for broadband and incubator membership; and (5) reduce $1,200 interest earnings in EDA budget to be offset by an equal reduction in personnel cost due to some per diem's being waived. The General Fund transfers come from the Urban & Economic Development Account No. 4600. Hedberg: discussed the need to evaluate short and long term funding needs of the EDA, recognizing that some commitments have been made for strategic initiatives related to broadband (Lookout Point Commu- nications contract) and business financing (Venture Fair event). Phone 952.447.9800 I Fax 952.447.4245 I www.cityofpriorlake.com EDA Members: agreed that there is a need to move forward with the 2012 initiatives and to fully fund them during 2012. All members discussed the current funding outlook of the EDA, which includes no fund bal- ance after the revolving loan fund transfers, but the ability to discuss the use of excess TIF 1-1 funds and the ability to assist businesses with revolving loans using a new loan policy to be developed by staff with fu- ture review by the EDA. MOTION BY MYSER, SECONDED BY CHOUDEK TO APPROVE THE PROPOSED EDA AND GENERAL FUND BUDGET AMENDMENTS AS PRESENTED BY STAFF SHOWING A NEW 2012 EDA BUDGET OF $167,723, AND TO FORWARD THIS RECOMMENDATION TO THE CITY COUNCIL. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. 6. NEW BUSINESS A. (1) EDAC Report Rogness: informed the EDA that a quorum was not present at its January 26th meeting; however, they did discuss responses received at the 2011 Meet -N -Greet event and other topics of interest to members. (2) Broadband Fiber Network Report Rogness: informed EDA that the subcommittee is continuing to have productive meetings with Eric Lamp - land every two weeks. (3) Technology Village Incubator Report Rogness: indicated that a subcommittee report will follow. B. Technology Village Report (from the Subcommittee) Rogness: asked EDA members whether they wanted to hear a report from Casey McCabe who authored the report on behalf of the subcommittee. Members agreed to ask questions only since they've all been able to read the report. Morris: indicated that the subcommittee has worked hard to identify options, examples and an initial plan for the old NOREX building on Franklin Trail. He further reminded the EDA that this initial start is only one step toward a larger Technology Village vision for areas on vacant land in the northern part of Prior Lake. Myser: recognized the lack of fully private incubators in the country, and he asked staff why some other city -owned buildings had not been considered due to lower potential costs with no direct lease subsidies. He advocated for more analysis on city buildings, including those on Main Avenue and the Club Prior space. In addition, he inquired about utilizing areas that could result in a combination of redevelopment, such as the Welcome Avenue or Svoboda areas in southeast Prior Lake. Hedberg: supported the need for a full evaluation of short and long-term financial commitment by the EDA to a business incubator facility in light of staff's estimated $160,000 cost over three years. This will have an impact on the EDA budget and its final support for a project. He also recognized staff's description of a possible funding source from the business revolving loan fund, but not without restrictions to its use. He thanked the subcommittee for its work and asked that group to continue further evaluation of space options and project funding. Choudek left the meeting at 5:15 PM. C. Venture Fair Event Update Rogness: reviewed the latest outline for a March Venture Fair event to be held at the Wilds, including a two -track event starting with a lunch for all participants and ending with a dinner for potential angel inves- tors. The primary organizer and facilitator will be Steve Mercil, and other speakers are being selected for the event. EDA Members: agreed that March is too early for this event in order to have adequate time to market and to solicit participants. Moving it out at least two months was strongly recommended by all members. 2 D. Termination of Lease, Etc. Related to Issuance of Refunding Bonds Erickson: reviewed the proposed EDA action necessary to refinance $10 million Public Project Revenue Bonds in 2005, Series 2005C, for City Hall and Police Station. The proposed $9.825 million General Obli- gation Capital Improvement Plan Refunding Bonds, Series 2012A, will pay off the 2005 bond with a lower interest rate, thereby saving annual costs. By doing so, the EDA must adopt a resolution to terminate the existing lease agreement since this agreement was only necessary for the 2005 bond issue. EDA Members: agreed that this refunding opportunity will save the taxpayers dollars in the long term and help the two city projects overall. MOTION BY MYSER, SECONDED BY MORRIS TO APPROVE THE AGENDA AS PRESENTED. VOTE: Ayes by Hedberg, Morris and Myser. The motion carried. E. Business Inquiry List Rogness: distributed the business inquiry list updated through January of 2012. He explained that new in- formation was added showing "next steps" for staff follow-up to business inquiries. This was provided as information only. 7. OTHER BUSINESS A. Draft March 12, 2012 Agenda was reviewed by the commissioners. ADJOURNMENT MOTION BY MYSER, SECOND BY MORRIS TO ADJOURN THE MEETING. With all in favor, the meeting ad- journed at 6:10 p.m. Frank Boyles, Executive Director 3