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Home My WebLink About10 29 2012 EDA Minutes O� p ��+A H � v � 4646 Dakota Street SE Prior Lake, MN 55372 �SD� Economic Development Authority Meeting Minutes October 29, 2012 1. CALL TO ORDER President Hedberg called the meeting to order at 4:04 p.m. Present were Hedberg, Morris, Choudek, Chromy and Myser. Also present was EDA Executive Director Boyles, Community & Economic Development Director Rogness, Community Development Specialist McCabe, and EDAC member Bill Henry. 2. APPROVAL OF AGENDA MOTION BY CHROMY, SECONDED BY MORRIS TO APPROVE THE AGENDA SUBJECT TO A CHANGE BY MOVING NEW BUSINESS ITEM "8A" AFTER THE CONSENT AGENDA. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. 3. APPROVAL OF MEETING MINUTES MOTION BY MYSER, SECONDED BY MORRIS TO APPROVE THE MINUTES OF SEPTEMBER 17, 2012. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. 4. CONSENT AGENDA The following items were presented on the Consent Agenda: A. Business Retention — Captain Jacks B. Approve EDAC Member Appointments C. Third Quarter EDA Financial Report Item "A" was pulled for further discussion. MOTION BY MYSER, SECONDED BY CHROMY TO APPROVE THE REMAINING TWO CONSENT ITEMS. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. (NEW BUSINESS, 8A) — Discussion with Gene Goddard, GREATER MSP. Staff introduced Gene Goddard, Director of Business Investment with GREATER MSP. He had previously worked with business development throughout Minnesota with DEED for nearly twenty years. Goddard noted that his new organization is completing its first full year by closing 26 deals worth $435 million and 4,300 jobs. He summarized how communities need to be prepared with three key factors, including work- force, incentives and utilities. Goddard identified Chaska as a community in this area that has actively used all of those ingredients for successful local economic development. He provided his thoughts about Prior Lake and its future opportunities for business growth along the County Road 42 corridor. Goddard recommended that the city consider preparing or supporting larger industrial sites since he doesn't know of any sites of at least 10-15 acres inside the interstate beltway. However, he said there are at least 70 buildings with 90,000+ square feet currently available for sale or lease in the met- ro area. When asked about financial resources for local economic development, Goddard said that a city the size of Prior Lake should strive to have a"war chest" of at least $1 million. Data shows that for every new job created, the local new tax revenue is in the range of $2,500-$5,000 per year. For a new data center, Goddard said that the key factors include a pad-ready site, incentives, power and fi- ber. In fact, Goddard recommends that the city work with power companies to provide Prior Lake an incen- Phone 952.447.9800 / Fa�c 952.447.4245 / www.cityofpriorlake.com tive rate for economic development. He is aware of Prior Lake's active recruitment for a new data center, including recent site proposals. MOTION BY MYSER, SECONDED BY CHROMY TO FURTHER EXPLORE OPPORUNITIES TO CREATE A LOCAL WAR CHEST OF ECONOMIC DEVELOPMENT FUNDS. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. 5. REMOVED CONSENT AGENDA ITEMS A. Business Retention — Captain Jacks. Rogness: summarized a discussion he had with the owners of Captain Jacks related to a failed retaining wall that separates the parking lot from the outtloor seating area. As part of an effort to retain existing businesses, Rogness provided the owners information related to the city's business revolving loan fund with an expectation that the EDA may review their application at the November meeting. Myser: said that he believes the loan fund should be used to assist businesses that add employees and increase the tax base. Rogness: reminded the EDA that the revolving loan fund criteria relates to the creation or retention of em- ployees at a specified lower wage level; in the case of Captain Jacks, the retaining wall could also meet a federal objective related to public health and safety. EDA Commissioners: agreed that the primary purpose of the city's revolving loan fund is to help busi- nesses create new jobs and increase the city's tax base. An application for funding to help pay the recon- struction cost of retaining walls does not appear to meet that economic development objective. MOTION BY MYSER, SECONDED BY MORRIS TO STATE THE EDA'S SUPPORT OF THE BUSINESS REVOLVING LOAN FUND FOR JOB CREATION AND TAX BASE EXPANSION. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried 6. PUBLIC HEARING No public hearing was scheduled. 7. OLD BUSINESS A. Fiber Optic Network Discussion. Rogness: summarized a meeting with three local incumbent service providers on September 10, 2012, in- cluding CenturyLink, Integra and Mediacom. Although the providers emphasized their existing substantial investments in their copper networks, all were willing to explore some type of potential structure that would allow public/private partnerships. Myser: said that the EDA members emphasized the importance of moving ahead of the normal curoe. Morris: stated that Broadband Advisory's work and recommendation lend well toward further exploration with these existing providers. Hedberg: said that it is extremely important for the city to take a lead role in talking to the local providers in order to make sure all options are evaluated well before the city would ever get into broadband business. Myser: sees a role for government in fiber since the existing regional market system is really not set up to provide a competitive system that would achieve full build-out and competitive pricing. Hedberg: asked that staff spend some limited time on determining the value of a job, looking at three sources or examples. Choudek and Chromy: both supported the EDA's effort to continue dialogue with CenturyLink, Integra and Mediacom. Rogness: asked the EDA to consider hiring Design Nine, Inc. to complete an independent evaluation of the fiber network report by Lookout Point Communications at a cost of $6,000. This proposed cost is sub- stantially less than another competing proposal submitted by Springsted. 2 MOTION BY MYSER, SECONDED BY CHOUDEK TO HAVE THE EDA CONTINUE MEETING ONE-ON- ONE WITH EACH OF THE THREE INCUMBENT SERVICE PROVIDERS. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. MOTION BY CHROMY, SECONDED BY MORRIS TO HIRE DESIGN NINE, INC. TO COMPLETE AN IN- DEPENDENT PROFESSIONAL REVIEW OF THE JUNE 2012 FIBER NETWORK REPORT BY LOOK- OUT POINT COMMUNICATIONS. VOTE: Ayes by Hedberg, Morris, Choudek, Chromy and Myser. The motion carried. Commissioner Chromy excused himself from the meeting at 6:00 p.m. B. Technology Village Documents. McCabe: summarized documents that are necessary for the new Technology Village at City Hall, including Technology Village bylaws and a lease for the 2,000 square feet between the city and EDA. MOTION BY MYSER, SECONDED BY MORRIS TO APPROVE THE TECHNOLOGY VILLAGE BYLAWS, AND FORWARD ITS RECOMMENDATION TO THE CITY COUNCIL. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried, MOTION BY MYSER, SECONDED BY CHOUDEK TO APPROVE THE TECHNOLOGY VILLAGE LEASE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE PRIOR LAKE EDA, AND FORWARD ITS RECOMMENDATION TO THE CiTY COUNCIL. VOTE: Ayes by Hedberg, Morris, Choudek and Myser. The motion carried. 8. NEW BUSINESS A. EDAC Report McCabe: provided a brief summary on the activity of the EDAC. Henry: added some further information on recent EDAC activities. B. EDAC Recommendations for "Business Friendly" Zoning Amendments (Industrial). No time was available to discuss this item. C. Downtown Property Acquisition Opportunities. No time was available to discuss this item. D. Business Inquiry List. No time was available to discuss this item. 9. OTHER BUSINESS A. Draft November 19, 2012 Agenda. No time was available to review this item. 10. ADJOURNMENT MOTION BY MYSER, SECONDED BY MORRIS TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 6:15 p.m. �� Frank Boyles, Executive Director 3