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HomeMy WebLinkAbout08 20 2012 EDA Minutes O 4 PRip� � � v �' 464b Dakota Street SE Prior Lake, MN 55372 �vnr�so'� Economic Development Authority Meeting Minutes August 20, 2012 1. CALL TO ORDER President Hedberg called the meeting to order at 4:00 p.m. Present were Hedberg, Morris, Choudek, and Chromy. Myser was absent. Also present was EDA Executive Director Boyles, Community & Economic De- ve(opment Director Rogness, EDA Assistant Treasurer Erickson, Community Development Specialist McCabe, and EDAC member Bernie Carlson. 2. APPROVAL OF AGENDA MOTION BY MORRIS, SECONDED BY CHOUDEK TO APPROVE THE AGENDA SUBJECT TO A PRO- POSED CHANGE BY HEDBERG TO INCLUDE AGENDA ITEMS 5A, 5D AND 6C AS A CONSENT APPROV- AL. IN ADDITION, THE NEXT EDA MEETING SHOULD INCLUDE AN AGENDA ITEM TO PROPOSE AN AMENDMENT TO THE EDA BYLAWS ALLOWING FOR A CONSENT AGENDA ON A REGULAR BASIS. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. 3. APPROVAL OF MEETING MINUTES MOTION BY CHROMY, SECONDED BY MORRIS TO APPROVE THE MINUTES OF JULY 16, 2012 VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried. CONSENT AGENDA (ADDED) As noted under the "Approval Of Agenda", this section was added to allow three agenda items to be voted on together under a consent process. MOTION BY CHROMY, SECONDED BY CHOUDEK TO APPROVE THREE CONSENT AGENDA ITEMS 5A, 5D AND 6C VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried. 4. PUBLIC HEARING No public hearing was scheduled. 5. OLD BUSINESS A. Consider Approval of a Resolution Amending the 2012 EDA Budget. Approved under the Consent Agenda. B. EDA Business Plan — Draft #5. Rogness: summarized changes made in the fifth draft of an EDA Business Plan that provides direction for EDA activities in 2012-2013 and beyond. He emphasized changes to the "achievement goals" based on historical data, consolidation of implementation actions, a revised list of "unique challenges", changes to the budget section, and the removal of sections for SCALE and the city's Strategic Plan (to be listed at the end of the plan). Choudek: had some questions on how the EDA could move forward on the initiative related to the city's need for more commercial and industrial pad-ready sites. Hedberg: still felt that not enough jobs, businesses and tax base was identified for future projections in Prior Lake as they relate to achievement goals. Hopefully, this could be viewed as a conservative base to build upon. Phone 952.447.9800 / Fa�c 952.447.4245 / www.cityofpriorlake.com Boyles: emphasized that this should be a document that is reviewed, updated and amended on a regular basis by the EDA in consultation with the City Council. EDA Commissioners: said that with a few minor changes related to timelines, this fifth version of the plan should be moved forward to the City Council as part of the 2013 budget review process. MOTION BY MORRIS, SECONDED BY CHROMY TO APPROVE THE EDA BUSINESS PLAN TO BE FORWARDED TO THE CITY COUNCIL. VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried. C. Consider Approval of a Resolution Adopting the Proposed 2013 EDA Budget and Tax Levy. Erickson: summarized the proposed 2013 EDA budget showing $204,700 in revenues and $151,450 in expenditures. Revenues include $200,000 from a new EDA tax levy plus some minimal revenue from in- cubator leases and revolving loan fund administration. Major expenditures include one-half of the total sal- ary/benefits for the Community & E.D. Director position, legal fees, professional services and business in- cubator operations. This proposed budget results in a fund balance of $53,250. Erickson emphasized the need for a sustainable funding plan for the EDA starting in 2013. Budget reserves had been used in 2012. Hedberg: continued to support the need to move EDA efforts and initiatives in 2012 forward to 2013 and beyond in order to strengthen economic development. This proposal is in line with the EDA's dscussion and direction given at its July meeting. Chromy: asked how this proposed EDA budget impacts the overall city's budget. Boyles: explained that the proposed 2013 budget will increase approximately one percent for every $100,000 of expenditure increases. In addition to the proposed additional EDA tax levy, the City Council will be evaluating other potential increases, including the replacement of last year's use of reserves that kept last year's levy lower. Choudek: supported the need to submit this proposed budget to the City Council in order to move forward with economic development initiatives. Morris: expressed concerns about the election process delaying the proposed fiber network system. He once again asked for the EDA to consider a budget allocation that would continue to move the fiber network design system forward in 2013. MOTION BY CHOUDEK, SECONDED BY CHROMY TO APPROVE A RESOLUTION ADOPTING THE PROPOSED 2013 EDA BUDGET OF $204,700 AND EDA TAX LEVY OF $200,000. VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried. D. TIF 1-1 Plan Modification Update. Approved under the Consent Agenda. E. Fiber Optic Network Discussion and Recommendation. Rogness: asked EDA Commissioners to further discuss the subcommittee's report and decide whether it wants to make a recommendation to the City Council. A City Council Work Session will include this topic on September 10 to include a report from Eric Lampland and the subcommittee. Chromy: wondered about the public's perception of fiber becoming a city investment, Choudek: expressed her opinion that the high cost of this system is holding most people back despite the report's positive revenue collections. Morris: asked that he and Eric Lampland be given the opportunity to meet with EDA Assistant Treasurer Erickson to further evaluate financing conclusions. Erickson: proposed that an outside review of the report or financing options would be advisable, even pri- or to the Work Session, as a valuable piece of information. Hedberg: shared his concerns about the city competing with private service providers, but yet, he sees the need for this important infrastructure in Prior Lake's future. Morris: expressed his desire to see some support for the walk-out engineering phase to begin in 2012. 2 EDA Commissioners: concluded that no EDA action would be necessary at this time, but they expressed support for some further independent evaluation of bond financing, and they asked that the public notice for the September 10 Work Session also include the EDA being present. F. Business Venture Fair Rescheduled. Rogness: asked EDA Commissioners whether they had an interest in trying the Venture Fair event again in 2012, either in the same format as before, or shortened to possibly only include the investor dinner. He also mentioned another option of working with SCALE in 2013 to host this more as a county-wide event. EDA Commissioners: discussed various options, but felt that any decisions should wait until a future meeting date due to other more important items on the agenda. MOTION BY MORRIS, SECONDED BY CHROMY TO DELAY FURTHER DISCUSSION OF THE BUSI- NESS VENTURE FAIR UNTIL THE NOVEMBER EDA MEETING. VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried. G. Downtown Redevelopment Acquisition Opportunity. Rogness: summarized the staff report, including follow-up to the previous discussion on this agenda item at the EDA's July meeting. The Johnson's, who own the house at 16323 Main Avenue, are not interested in selling the adjacent commercial property with the sale of the rental house. Rogness also had met with Robert Mertens about his interest in selling a downtown vacant old house on Erie Avenue. Mr. Mertens wants to sell all of his property rather than carving out any parcels one at a time. Chromy: suggested that the EDA delay any action on downtown acquisitions at this time. Morris: agreed with Chromy's position. Hedberg: recommended that staff continue discussions with property owners that have some interest in selling key downtown parcels, including Robert Mertens and the owner of the Professional Building that is currently for sale. Rogness: agreed to continue dialogue and evaluations of opportunities, and then to report that back to the EDA at future meetings, The TIF District 1-1 account balance can be used as a source of funding. 6. NEW BUSINESS A. (1) EDAC Report Carlson: provided a report on the activity of the EDAC with focus given to the status of Arcadia/CR 21 in- tersection and the South Downtown study process. (2) Broadband Fiber Network Report, and (3) Technology Village Incubator Report. McCabe gave a report on the activity of these two EDA subcommittees. B. Downtown Area Parking Study McCabe: reviewed conclusions from the Downtown Area Parking Study updated during the summer of 2012. Overall parking is not a problem downtown with on overall occupancy level of 38% and an average peak level of 70%. Some core blocks have higher occupancy/use levels, such as those two blocks that in- clude Edelweiss and Car Quest. Chromy: thought that this information should get out to the public since there has been a perception of parking problems in downtown Prior Lake. Hedberg: confirmed with McCabe that an occupancy level of 90% is essentially full occupancy. Hedberg asked whether other parking study examples had been used to assist with this one, He also commented that a 40% occupancy level could be perceived as good news by showing downtown activity. McCabe: said that he used the previous 2004 parking study as the base from which to update rather than using any other report or format. EDA Commissioners: expressed thanks to staff for completing an excellent report, and reaffirmed that this can now be updated on a periodic basis, or as may be necessary due to certain changes being done or contemplated downtown. 3 C. Consider Approval of the 2�d Quarter Financial Report for the EDA Special Revenue Fund Approved under the Consent Agenda 7. OTHER BUSINESS A. Draft September 17, 2012 Agenda was reviewed by the commissioners, B. MOTION BY CHOUDEK, SECONDED BY CHROMY TO AUTHORIZE STAFF TO PROCEED WITH A PROPOSED AMENDMENT TO THE EDA BYLAWS IN ORDER TO ADD A CONSENT ITEM TO THE REGULAR LIST OF AGENDA ITEMS. VOTE: Ayes by Hedberg, Morris, Choudek and Chromy. The motion carried. ADJOURNMENT MOTION BY CHOUDEK, SECONDED BY CHROMY TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 6:05 p.m. (� /� ,��� Frank Boyles, Executive Director 4