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HomeMy WebLinkAboutMinutes 09-27-12 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE, MINNESOTA ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING MINUTES – September 27, 2012 1. Call to Order. The meeting was called to order at 7:35 a.m. in the Wagon Bridge Conference Room at City Hall. Members present: Troy Presler, Bill Henry, Wade Larson, Joe Passofaro, Bernie Carlson, Sandi Fleck, Mary Viereck and Mike Myser. Members absent: Greg Schweich, Adam Blahnik and Thane Tande. Staff present: Dan Rogness and Casey McCabe. Guests present: Chad Bohnsack and Mike Stout. 2. Approval of August 23, 2012 Meeting Minutes. MOTION BY HENRY and SECOND BY FLECK, to approve the August 23, 2012 minutes as submitted. Motion adopted unanimously. With guest speaker Chad Bohnsack present, agenda item 4.a. Guest Speaker – Chad Bohnsack, Scott County Commercial Appraiser was moved ahead of Old Business on the EDAC agenda. 4. New Business. a. Guest Speaker – Chad Bohnsack, Scott County Commercial Appraiser Bohnsack: introduced himself to the EDAC and shared his background and professional experience related to property appraisals. Mr. Bohnsack presented information and led a discussion with the EDAC on subjects related to commercial property assessments in Prior Lake and Scott County. Bohnsack: stated the Scott County Assessor’s Office has two primary functions; valuation and classification. Mr. Bohnsack explained how the County determines a property’s market value, the elements of market value and the differences between fee simple market value and leased fee market value. Fee Simple is based on market information to estimate value, such as rents, vacancy and expenses and Leased Fee uses the subject property’s actual information, including actual income and expenses to estimated value. In addition, Mr. Bohnsack discussed the different approaches to value including the cost approach, sales comparison approach and income approach and explained the differences between the three. Bohnsack: explained the formal duties of the Assessor’s Office including the appeal process, where taxpayer concerns over valuations are addressed and detailed and the timeline for property taxes payable, which takes approximately three years and includes a sales study, value date, notices and tax statements, appeals process, truth in taxation meeting, tax statements/value notices and property tax payment dates. Bohnsack: shared a value comparison showing the increase in property value and total commercial/industrial value in Prior Lake, Savage, Shakopee and Scott County in 2002 and 2012. It was noted that Prior Lake is the second largest city in the county in terms of total property value at $2,476,159,900 for taxes payable 2012. 1 Myser: asked Mr. Bohnsack to explain fiscal disparities. Mr. Bohnsack and the EDAC discussed fiscal disparities noting that the City of Prior Lake budget benefits from the fiscal disparities program. Bohnsack: shared sales and listing comparison information which highlighted the location and pricing of available commercial and industrial property available in Prior Lake compared to other properties in Shakopee. The listing information indicated a wide range of pricing based largely on location. Bohnsack: was asked to respond to a question about why property values vary within different industrial parks. Mr. Bohnsack responded stating there are many factors that influence value, including location, use, market conditions, quality of construction and age of improvement. Bohnsack: responded to a question related to the estimated impacts to the City from an additional 200,000 square feet of new construction. Mr. Bohnsack stated the impact on the tax would depend on a number of circumstances including local budgets, value of the improvements, changes in values of remaining properties, law changes, etc. Assuming a total value of the proposed improvement at $8,000,000 and budgets remaining flat and everything else remains the same the total tax generated from the proposed development would be $290,873 with the City’s share of tax increase being $28,183. Bohnsack: shared the 2012 payable effective tax rates for the county which showed Prior Lake has a commercial/industrial rate of 3.23%, which is the second lowest in the County to Shakopee which has an effective tax rate of 3.2% for commercial/industrial. EDAC members: had a lengthy and valuable discussion with Mr. Bohnsack and thanked him for sharing his time. 3. Old Business. a. Prior Lake Farmer’s Market Location Presler: introduced the agenda item and stated the EDAC has discussed potential alternate locations for the Farmer’s Market during previous meetings. During the February 2012 meeting, the EDAC discussed alternate locations for the market and identified the current location on Main Avenue as the best available location for 2012; however, the EDAC wished to discuss alternate locations for 2013 during future meetings. Presler stated that some of the downtown businesses are opposed to the market on Main Avenue and other businesses are in favor of the market at its current location. Carlson: stated the CarQuest and Shell businesses are negatively affected by the market. Viereck: stated that many people from surrounding communities attend the Farmer’s Market and Prior Lake and the downtown businesses are getting exposure during the event. Passafaro: commented that there is a nice mix of people attending the Farmer’s Market and that may be lost if the event is held at an alternate location, such as Lakefront Park. Stout: asked if the Farmer’s Market should be viewed as a problem or an opportunity. Stout acknowledged that some businesses may be negatively affected by the market but many other businesses profit from the market. When discussing whether the concerns of a few businesses should override the support of many businesses, Passafaro stated that it is tough not to listen to the businesses that suffer but that doesn’t mean the EDAC cannot listen to all businesses. Carlson: stated there may be other suitable locations that would maintain the benefits to downtown businesses and may mitigate the challenges. EDAC members discussed the option of moving the market to Erie Avenue and utilize the City owned parking areas. Members directed staff to analyze the Erie Avenue space option related to parking stalls, dimensions, and display area and report back to the EDAC at a future meeting. 4. New Business. b. EDAC Annual Report – November 26 City Council Work Session th McCabe: informed the members that the EDAC has been invited to a City Council work session on Monday, November 26, 2012. The purpose of the work session is to allow all advisory committees an opportunity to present the City Council with a report of activities completed in 2012 and a planned list of activities to be completed in 2013. Staff will compile a few suggested topics to highlight at the work session for additional discussion during the October EDAC meeting. Presler: stated this agenda item should be a high priority during the October EDAC meeting and recommended EDAC members bring suggested topics to highlight at the work session to the next meeting for discussion. c. EDAC Terms Ending October 31, 2012 McCabe: stated the EDAC currently has four members with terms expiring on October 31, 2012, including members: Presler, Viereck, Passafaro and Blahnik. McCabe added that the City has received applications from five people interested in serving on the EDAC. The City is in the process of interviewing applicants in compliance with the EDAC Bylaws and it is anticipated that new EDAC members will be recommended for EDA approval prior to the November EDAC meeting. 5. Other Business. a. EDA Updates i.Broadband Fiber Optic Network McCabe: informed the EDAC that the EDA Broadband Advisory Committee (BAC) presented its Fiber Optic Network Feasibility Report during a combined City Council and EDA work session on September 10. A representative from Springsted was also available and th presented a report on public financing options to the City Council and EDA. Following the work session, EDA members identified a need to continue discussion of the fiber recommendation to allow additional time to research the proposed project and address their concerns. ii.Technology Village Incubator McCabe: stated the City Council received a Technology Village incubator program report during a September 5 work session. On September 10, the City Council approved a thth $50,000 budget amendment to fund Phase I of the Technology Village program. Staff has been working with the Technology Village subcommittee to finalize the program documents (Bylaws, lease agreement, application, etc.), establishing a list of candidates to serve on the Board of Directors, and required construction activities. A target grand opening date has been established in December 2012. iii.Broker/Developer Panel Discussion McCabe: informed the members that the EDA held a similar Broker/Developer panel discussion on September 17 as was held by the EDAC in August. Guests included Ron th Mullenbach of DR Horton, Jim Hill of Gonyea Land Company and Steve Dombrovski of Suntide Commercial Realty. The discussion centered on current development activity in Prior Lake and the surrounding communities, feasible future development opportunities in the community and where the EDA and the City of Prior Lake should be concentrating their efforts for future economic development activities. iv.Downtown Vitality Study – Envision Minnesota McCabe: updated the members on the Downtown Vitality Study being completed with Envision Minnesota. A brief survey was drafted by steering committee members to gather information from downtown property owners, residents and customers. City staff and steering committee volunteers passed out surveys during the August 25 Prior Lake Farmer’s Market and the th survey was also made available online; approximately 120 online surveys have been completed. Envision Minnesota will compile the survey results and the information will be presented during the Downtown Vitality Workshop, which has been scheduled for Thursday, Oct. 18, 3:00 – 8:00 PM at Club Prior. All EDAC members are invited to participate in the workshop. The survey deadline is September 30. Members were asked to complete the short online th survey, which can be found at the following link: http://www.surveymonkey.com/s/27MD9N5 b. EDAC Liaison to the EDA – October 15, 2012 Meeting (Bill Henry) Bill Henry will serve as the EDAC liaison at the next meeting of the EDA on October 15, 2012. c. November EDAC Meeting Date (November 29, 2012) EDAC Members were informed that due to the Thanksgiving holiday, the November EDAC meeting will be held on the 5 Thursday of the month; November 29, 2012. th Miscellaneous. Henry: noted that the EDAC had previously established an October 1, 2012 deadline for the completion of the Business Retention and Expansion surveys in Deerfield, Welcome, and Waterfront Passage Industrial Districts. City staff will compile the results of the completed surveys for review at the October EDAC meeting. 6. Next Meeting Date. The next EDAC meeting will be Thursday, October 25, 2012 at 7:30 a.m. 7. Adjourn. With a MOTION BY HENRY and SECOND BY CARLSON, the meeting adjourned at 9:15 a.m. Submitted by: Casey McCabe