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Home My WebLink About01 22 2013 EDA 4C Budget Technology Village O � PRip� � � 4646 Dakota Street SE '��s��' Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 22, 2013 AGENDA #: 4C PREPARED BY: Casey McCabe, Community Development Specialist Dan Rogness, Community & Economic Development Director Jerilyn Erickson, Treasurer AGENDA ITEM: RESOLUTION AMENDING 2013 EDA BUDGET FOR TECHNOLOGY VILLAGE DISCUSSION: Introduction The purpose of this agenda item is to formally adopt a resolution requesting the City Council amend its General Fund and EDA budgets in support of the Technology Village Incubator start-up costs of $50,000. Although authorized in 2012, not all funds were spent during that year. Historv • On September 10, 2012, the City Council approved a General Fund budget amendment to reflect a transfer of up to $50,000 from the General Fund reserve to the Economic Development Authority budget to implement Phase I of the Technology Village program. During review of the budget amendment request, City staff assured both the City Council and the EDA that no funds would be expended until two tenants were identifietl for the Technology Village program. Now that three tenants have been identified and approved for the program, staff has begun expending funds allocated to the Technology Village program. Although a majority of the authorized funds were obligated in 2012, most of the funds were not expended in 2012 because many items were not received prior to December 31, 2012. Since all of the allocated funds were not expended in 2012, staff is requesting the budget amendment be reauthorized in 2013. At the August 20, 2012 EDA meeting, the EDA approved a resolution requesting the City Council amend the 2012 Prior Lake General Fund and EDA budgets. This agenda item essentially ratifies the EDA's resolution made on August 20, 2012 to support the proposed budget amendments. Current Circumstances The 2012 Technology Village Business Plan, which estimated start-up costs to be $50,000, was previously accepted by the EDA. The EDA expressed its support to start this initiative in 2012, which required the previously approved $50,000 budget amendment. Of the $50,000 budget, $13,190.68 has been expended. Of the $36,809.32 balance, $23,354.39 has been obligated for office furniture and marketing costs. The un- obligated funding balance of $13,454.93 will be spent on other build-out and program costs in 2013. � Conclusion The EDA should approve a resolution that must then be forwarded to the City Council for its review/approval process. Council review is scheduled for January 28, 2013. ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget be approved by the City Council. FINANCIAL The City's General Fund Reserves will be reduced by nearly $37,000, IMPACT: which will be added to the EDA's budget. ALTERNATIVES: The following alternatives are available to the EDA: 1. Approve a Resolution requesting the City Council amend the 2013 Prior Lake General Fund and EDA Budgets, as proposed or as amended. 2. Deny approval of the Resolution. 3. Table action for further discussion. RECOMMENDED Alternative 1. MOTION: ATTACHMENTS: 1. EDA Resolution 2. Proposed EDA 2013 Amended Budget 3. Technology Village Budget/Expenditure Spreadsheet � RESOLUTION 13-xxEDA A RESOLUTION TO AMEND THE 2013 ECONOMIC DEVELOPMENT AUTHORITY BUDGET Motion By: Second By: WHEREAS, The Economic Development Authority (EDA) has developed strategic goals to facilitate economic development in Prior Lake; and WHEREAS, The establishment of a Technology Village business incubator was identified as a key objective of the EDA and one of the Economic and Community Development goals identified in the City of Prior Lake 2030 Vision and Strategic Plan; and WHEREAS, Based on estimated startup costs, the City Council approved an EDA budget amendment on September 10, 2012 for $50,000 to support Technology Village; and WHEREAS, City staff began to fund the build-out costs of Technology Village in late 2012 once a minimum of finro tenants were secured with leases, resulting in the need to expend budgeted funds in 2012 and 2013; and WHEREAS, The EDA has expended approximately $13,000 of the estimated $50,000 of startup � costs in 2012 for Technology Village with the remaining expenditures of $37,000.00 to incur in 2013. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The EDA requests that the Prior Lake City Council authorize a transfer of an amount not to exceed $37,000.00 from General Fund reserves�to the Economic Development Authority. 3. The EDA requests that the Prior Lake City Council adopt the 2013 budget amendment in an amount not to exceed $37,000.00 for Technology Village expenses. PASSED AND ADOPTED THIS 22" DAY OF JANUARY, 2013. YES NO Hedber Hedber Choudek Choudek Chrom Chrom Morris Morris Vacant Vacant � Frank Boyles, Executive Director http:Nfinance1lteamslEDA/Shared Documents/January 22, 2013/EDA Report 4C Attach-1 (2013.01.22).doc ECONOMIC DEVELOPMENTAUTHORITY Enanneetiny2oi3.o1.22 2013 Proposed Adopted Proposed Amended Budget Amendment Budget Comments Revenues / Sources: Intergovernmental revenues 33010 Property Taxes $ 150,000 $ - $ 150,000 Charges for Services 34760 IncubatorLeases 2,700 - 2,700 xxxxx Revolving Loan Administration 2,000 - 2,000 Transfers from Other Funds 39203 General Fund - 37,000 37,000 7ransferfrom General Fund Total Revenues/Sources $ 154,700 $ 37,000 $ 191,700 Expenditures / Uses: 46500 Economic Development 101 Personnel $ 72,734 $ - $ 72,734 201 Office Supplies 500 - 500 304 Legal Fees 7,000 - 7,000 314 Professional Services 60,000 - 60,000 331 Training & Certification 3,500 - 3,500 351 Legal Notices 500 - 500 433 Dues & Subscriptions 1,000 - 1,000 145,234 - 145,234 46503 Technology Village Incubator 201 Office Supplies 1,500 - 1,500 321 Communications 2,750 - 2,750 433 Dues & Subscriptions 1,000 - 1,000 437 Miscellaneous 1,200 - 1,200 37,000 37,000 Remaining costs for Incubatar xxx Businesslncubator - 6,450 37,000 43,450 Total Expenditures / Uses $ 151,684 $ 37,000 $ 188,684 Change in Fund Balance $ 3,016 $ - $ 3,016 O:�EDA�Budget�2013 EDA Budget 1/17/2013 I TECHNt?LOGY VILIAGE COSTS - 2012j13 Prior lake City Katl i�E�n svuc��r Acrua� �v�s - s n� e 5gsr�.00 Phones 6 $2,750.OQ ° �� Com uters 6 $9,500.00 ��.�' � �,�"�� ` Network E ui ment $5,0�.� $0.00 No Cost Savin s lnternet Connectlon 2,504.Ua $0.0(1 Mn Cost Savi _ PrintersJScanners 4 $1,0(�.� �' �,�,' �,Y_ Pro ector Screen 1250.00 Not Yet Obt ated �� { .* � . RemodeHn - Wail $1 UOO.UO �,� �� Remodelin - Other $900,t10 Not Yet Ob! a#ed Lodcs 150.40 $Q. No Cost Sa s Refri erator & Microwave $254.00 �.��;;� � s Coffee Machine $150.00 $151.98 �bEi ated tn 2013 Marketin - Website $1,ODO.OD $975.0{1 Obl �ted In 2013 Marketin - Other $1,QOO.t�3 Not Yet +O�bF ated Offke �urniture $20,O�.fl4 $22 379.39 ated En 2013 Mlsc�llaneous $2 70U.� P1ot Y�t {{�fi at�c! � ��.� �� 2oi3 o�t�Arwnfs 23 sc�.3� TOTAL $50 OOA.t�! $36,545A7 • . BALANCE TQ $SO,�Q $�0.40 $13,�54.93