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HomeMy WebLinkAbout05 11 2012 EDA Minutes4646 Dakota Street SE Prior Lake, MN 55372 1. CALL TO ORDER Economic Development Authority Meeting Minutes June 11, 2012 President Hedberg called the meeting to order at 4:05 p.m. Present were Hedberg, Morris, Choudek and Myser. Absent was Chromy. Also present was Assistant City Manager Meyer, Community & Economic Devel- opment Director Rogness, EDA Assistant Treasurer Erickson, and Community Development Specialist McCa- be. 2. APPROVAL OF AGENDA MOTION BY MYSER, SECONDED BY CHOUDEK TO APPROVE THE AGENDA WITH ONE CHANGE TO MOVE 5.A, EDA BUSINESS PLAN, TO THE END OF OLD BUSINESS AS ITEM 5.C. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. 3. APPROVAL OF MEETING MINUTES MOTION BY CHOUDEK, SECONDED BY MORRIS TO APPROVE THE MEETING MINUTES OF MAY 14, 2012 VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. 4. PUBLIC HEARING No public hearing was scheduled. 5. OLD BUSINESS A. Technology Village Business Plan. Rogness: introduced members of the subcommittee, including Bob Jader, John Bryant and Terry Hitch- cock (past member). EDA members on the subcommittee include Bob Morris and Michelle Choudek. McCabe: summarized the subcommittee's report recommendations related to three phases. Phase One includes starting small without significant public funding, which would include 2,000 square feet as business incubator space in City Hall. Phase Two includes expanding incubator businesses into existing buildings. Phase Three would include a future Technology Village campus in Prior Lake. Myser: indicated that the subcommittee did a good job. He asked whether the business focus was narrow or broad? He also asked about the selection of the Board of Directors and the Executive Director. Hedberg: supported a broader business focus with technology as the base. He asked that an executive committee be considered that would be more aligned with incubator operations. Hedberg identified the need for an interim director during the initial phase. Morris: recommended that the EDA adopt the plan and move it forward for implantation. Choudek: felt that this plan is the safest way to begin an incubator by getting our feet wet first, and then build from there to other phases. Myser: asked that the EDA consider that its level of business support, such as below market rents, be tied to the EDA obtaining a small percentage of business ownership. If the business remains in Prior Lake, then they would get that ownership percentage back. Hedberg: likes the idea that as support moves beyond Phase One, business may then need to pay more market rate rents. Subcommittee Members: introduced some guests that would have an interest in being some of the first businesses to locate on City Hall with Phase One. Phone 952.447.9800 I Fax 952.447.4245 I www.cityofpriorlake.com MOTION BY MYSER, SECONDED BY CHOUDEK TO RECOMMEND MOVING THE TECHNOLOGY VIL- LAGE BUSINESS PLAN FORWARD TO ANOTHER MEETING IN ORDER TO ADDRESS SOME ISSUES DISCUSSED, INCLUDING A CLARIFICATION OF THE BUSINESS FOCUS AND AN OPPORTUNITY TO OBTAIN SOME BUSINESS OWNERSHIP IN EXCHANGE FOR ASSISTANCE. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. B. Economic Development Policy for Deerfield and Welcome Industrial Parks. Rogness: summarized the need for a policy that identifies the city's overall level of support for these two business/industrial parks in southeast Prior Lake. He reviewed a draft policy as the beginning for discus- sion. Representatives of Deerfield were also present, including part-owner Brad Rathman and John Hill of Gonyea. Myser: asked for further clarification on what the problem is that we're trying to address or solve. For ex- ample, is it related to marketing or the condition of surrounding properties? Hedberg: thinks that a major problem is that Prior Lake is not really on anyone's radar screen in terms of business location and expansion. Rathman: said that the owners are committed to sell property at market rates, which is currently about $2.10 per square foot. He said that the owners would likely sell all of it to the EDA right now for $1.50 per square foot as an example of their desire to sell this land. He said industrial land in Shakopee just sold for $2.75 per square foot, and it was a large tract of land (which usually sells less than other smaller parcels). He wondered whether the city could provide tax abatement to them now because of the costs the owners have incurred over the years as higher -valued vacant industrial land. Hill: indicated that the owners have suffered from a downturn in the economy, but that something needs to jumpstart development once again. He supported the need to evaluate some potential building material standard problems that may inhibit some development. Choudek: echoed the need for all parties to work together due to the future benefit related to jobs, busi- nesses and tax base. Myser: said that the commitment is there from the city to work toward common goals for economic devel- opment in the city's existing business parks. Hedberg: asked Rogness to return with some revisions that incorporate in some additional policy direc- tions, such as the evaluation of existing building/zoning standards. C. EDA Business Plan — Draft #3. Rogness: summarized changes made in the third draft of an EDA Business Plan that provides direction for EDA activities in 2012-2013 and beyond. He also indicated that the employment table was changed to add other categories, including retail. Rogness reviewed the division in achievement goals showing a base lev- el and a higher level due to local economic development efforts. Hedberg: felt that the achievement goals related to business, job and tax growth were too conservative; for example, 3,500 jobs seem possible vs. 2,785 shown in the plan. Hedberg stated that this plan must be presented to the City Council for review and approval. Myser: said that the Technology Business Plan was a better example of what he would like to see for the EDA Business Plan. The EDA Plan is not clean and crisp, and he would not give this to the council. Myser thinks the plan should begin with a recognition of things that are broken in Prior Lake, such as the city's past reluctance to invest in economic growth. The plan should target certain areas, or strategic parcels, for future public investment. Hedberg: supports having the achievement goals early in the plan, and it should tie jobs to tasks. The plan should necessarily rely on the Maxfield report as the baseline for establishing goals. Myser: encouraged the plan to address what can be done in Prior Lake to double employment, such as getting more pad -ready sites, establishing a business incubator, etc. He thinks the idea of an office park, research and development, and a technology village all fit the strategic direction of Prior Lake. 2 Morris: hopes that the plan could reference other plans at the end. 6. NEW BUSINESS A. (1) EDAC Report Rogness: asked Bill Henry, liaison member from the EDAC, to join EDA members at the table in order to give an EDAC report. Topics summarized included business friendly initiatives and EDAC review of down- town area topics; such as parking availability, speed limits, and bus pick-up and drop-off locations (2) Broadband Fiber Network Report Rogness: informed EDA that the subcommittee will present its report to the EDA at a special meeting on Thursday, June 21 from 5:00 to 7:00 p.m. (3) Technology Village Incubator Report (no report since presented earlier) B. Downtown Redevelopment Acquisition Opportunities Rogness: reviewed two downtown properties that have had owners ask city staff about whether the city has an interest in purchasing them. These include houses located at 4664 Dakota Street and 16323 Main Avenue. The one on Main is renter occupied while the one on Dakota is owner occupied. Myser: asked that staff return with additional information to help inform the EDA see a larger picture about the status and needs downtown, including other city -owned downtown property, parking locations, etc. Hedberg: supported looking further at the Main property, but not the one located on Dakota Street. He could potentially support the acquisition of this property based on the future redevelopment potential along this side of Main, including two other adjacent parcels. C. 2011 Annual Financial Report Erickson: summarized the annual report with a December 31, 2011 fund balance of $136,063. The adopted 2012 budget of $131,923 would leave a year-end balance of $4,140. MOTION BY MYSER, SECONDED BY CHOUDEK TO ACCEPT THE 2011 ANNUAL EDA REPORT AS SUBMITTED. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. D. 2012 First Quarter Financial Report. Erickson: reviewed the unaudited first quarter report for EDA revenue and expenditures that relate pri- marily to expenses incurred for the broadband consultant. Revenues include grant funds from the Scott County CDA, transfers from the General Fund, and interest earnings. MOTION BY MYSER, SECONDED BY MORRIS TO ACCEPT THE MARCH 31, 2012 FINANCIAL RE- PORT AS SUBMITTED. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. E. 2013 Budget Discussion — EDA Tax Levy Erickson: stated that an EDA funding source in place will be needed for 2013 in order to accomplish eco- nomic development activities, including staff resources. Hedberg: supported the fact that the EDA was not set up to stop at this point in time. The EDA needs to complete its business plan prior to sending a proposed budget to the EDA for 2013. Myser: echoed Hedberg's comments, emphasizing the need for a business plan prior to any request for an EDA tax levy for a funding base. Erickson: indicated that a public hearing is not required specific to an EDA levy unless the proposed amount exceeds the maximum amount allowable by statute. Hedberg: asked that Erickson and Rogness work together to bring back a recommendation to the EDA's July meeting. 3 7. OTHER BUSINESS A. Draft July 16, 2012 Agenda was reviewed by the commissioners, including a guest speaker from GREAT- ER MSP. ADJOURNMENT MOTION BY MYSER, SECOND BY MORRIS TO ADJOURN THE MEETING. With all in favor, the meeting ad- journed at 6:43 p.m. Frank Boyles, Executive Director L'