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Home My WebLink About5A EDA Update4646 Dakota Street SE Prior Lake. MN 55372 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE REPORT MEETING DATE: February 28, 2013 AGENDA M 5.a. PREPARED BY: Casey McCabe, Community Development Specialist AGENDA ITEM: EDA UPDATES DISCUSSION: Introduction The EDA held its regularly scheduled meeting on Tuesday, February 19� The EDA discussed the following items on their agenda. i. Consider Approval of the Preliminary 2012 Financial Report for the Economic Development Authority Special Revenue Fund ii. Election of Officers for 2013 iii. Sewer and Water Fee Deferral Program Policy and Budget iv. EDA Business Plan and 2030 Vision & Strategic Plan v. Election of EDAC Liaison vi. Development Update History Consider Aaoroval of the Preliminary 2012 Financial Reoort for the Economic Development Authority Special Revenue Fund The City Finance Director prepared a preliminary summary financial report as of December 31, 2012 for the Economic Development Authority Special Reve- nue Fund. The report reflects revenue and expenditure activity for all of 2012. Election of Officers for 2013 The EDA elected Officers for 2013 including Ken Hedberg as President, Michelle Choudek as Vice - President, City Finance Director Jerilyn Erickson as Treasurer, City Manager Frank Boyles as Secretary and Community & Eco- nomic Development Director Dan Rogness as Assistant Treasurer. iii. Sewer and Water Fee Deferral Program Policy and Budget The Metropolitan Council has approved a new program that allows cities to participate in a SAC Deferral Program (SAC refers to Sewer Availability Charge). City staff proposed the city adopt the SAC Deferral Program and al- so amend its own sewer /water fee payment program to mirror the Met Council program; the proposals were approved by the City Council on February 11 along with approval of a new program policy. The policy creates three programs which allow for the deferment of the Met Council SAC fees as well as the City of Prior take sewer and water fees (sew- er connection charge, water connection charge and water tower charge). Met Council SAC Deferral Program 5 -year term; 2.37% (2013); 20% paid up- front; secured by assessment agreement against the property; eligible only to small business with 10 or less SAC unit determination. This program is established and regulated by a master deferral agreement executed be- tween the city and Metropolitan Council. Any changes in the program would have to be in accordance with Metropolitan Council guidelines and approved in a revised master deferral agreement. 2. City SewerlWater Fee Deferral Program A 5 -year term; same interest rate as Met Council program; 20% paid up- front; secured by assessment agree- ment against the property; eligible only to small business using same Met Council definition. This program is established by city ordinance and is in- tended to be parallel with the Metropolitan Council program guidelines. 3. City Sewer/Water Fee Deferral Program B: 5 -year term; interest established identical to assessment rate method; 20% paid up- front, secured by as- sessment agreement against the property; eligible to anyone that has more than 10 SAC units before credits. This program is uniquely the city's and is established and regulated by city ordinance. iv. EDA Business Plan and 2030 Vision & Strategic Plan The City Council adopted the 2030 Vision & Strategic Plan on February 21, 2012, and it adopted the EDA Business Plan on September 24, 2012. The council will be discussing the 2030 Strategic Plan at a Work Session on March 11th, so staff asked the EDA to review and discuss both documents in order to evaluate: (1) the Economic & Community Development strategic element goals; and (2) the 2092/2013 implementation plan in the EDA Business Plan. v. Election of EDAC Liaison Michelle Choudek was elected as the EDA liaison to the EDAC. vi. Development Update An update of residential and commercial /industrial development was presented to the EDA. The Development Update PowerPoint presentation is attached to this report for your information. Conclusion Updates of EDA activity related to the status of the above listed topics will be pre- sented to the EDAC during the February 28, 2013 meeting. ISSUES Update only. FINANCIAL None. IMPACT: ALTERNATIVES: Update only. RECOMMENDED Update only. MOTION: ATTACHMENT: Residential and Commercial /Industrial Development Update hmm'fatfl s Retdd_ervl1_.J MHA'i1? i'1 }rr , 7i:it�rati al 8111414 Ig ;l:;(mi•r. 01 sit* �O11 2011 New Housing Units = 4,529 2012 New Housing Units = 9,035 Percent Change 2011 -2012 = 99.5% Top Five Cities in 2012 52.5% of all units Minneapolis = 3,104 units St. Louis Park = 509 units Blaine = 398 units ►Nood.iJUry �. 3 units. t;orr�ra�err,i.�I ! ir�clu:;trial r�r�ilrlir�d�� a'srrr�'st..� 20 °t : -12 2011 New C/I Permit Value = $ -0- 2012 New CII Permit Value = $ 1.1 million Percent Change 2011 -2012 = 110% 2011 CII Additions /Alterations = $ 839,900 2012 C/I Additions /Alterations = $ 632,300 Percent Change 2011 -2012 = - 24.7% t2€;:sirl ;r'�tirsl tisuilclir�c� t� ,r'irsii�A �(. #1'i�'l> 2011 New Housing Units = 106 2012 New Housing Units = 174 Percent Change 2011 -2012 = 64.2% 2011 New Dousing Unit Value = $ 26.3 million 2012 New Housing Unit Value = $ 51.3 million Percent Change 2011 -2012 = 95.1% .2011 Home Additions /Alterations = $ 3.95 million 2 0.12 Hague Additions / Alterations = $ 3 � 'q tf ✓� y .:?, 3e:tvogi= y Prior ■ 2011 Near Residential Permits: — Shakopee = 117 units — Savage = 103 units — Prior Lake = 106 units ■ 2012 New Residential Permits: — Shakopee = 90 units — Savage = 195 units tom, "Ill ing i t tt Goalpuif kowl ProM1t3r 9 .1M 1 42 2011 New Commercial /[ndustrial Permit Value -- Shakopee = $ 16.4 million — Savage = $ 4.6 million - Prior Lake = $ -0- ■ 2012 New CommerciallindLISWal PerMit Value — Shakopee = $ 47.6 million -- Savage = $ 9.2 million ..._. _ X12 Dui i1611n g AG- t1Vliy - G' I it 2013 ESCulklifi ( ;_ :,ffY) • New residential permits = 15 in 2013 compared to 5 in January of 2012. • Now commercial /industrial permits = 0 (both years). • Addition/alteration permits (residential) = 16 in 2013 compared to 22 in 2012. • Additionlalteration permits (comm./ind.) = 1 in 2013 compared to 1 in 2012. ..Total building pennit.value. =,$4.6 million in 2013 dh�� £i u / A) CA en P ercen t of 8i: , - - vk a Value Q 2013 Mt AAju A(Al it y ■ 2003 Cll Percent of Total Market value Shakopee = 26.58% Savage = 8.83% Prior Lake = 3.96% ■ 2012 CII Percent of Total Market Value Shakopee = 24.36% • Teresa's Mexican Restaurant (4,680 SF 1150 seals) • Artisan Bistro (expand from 1,410 - 2,775 SF 105 seats) • Honest 1 Auto Care (5,630 5F 18 interior Days) • McDonalds (4,950 SF 195 seats) • River Valley Vet Clinic (doubled size to 7,000 SF - 2012) Savage = 15.36% ■ New Commercial Area at CR 21 & Fish Point Rd. within ■ Hickory Shores (DR Horton) -- 38 SF lots, final plat r Stemmer Ridge (Arcon) — 18 SF lots, final plat r Maple Glen (DR Horton) — 43 now SF lots, final plat r Eagle Creek Estates (KRB) — 63 SF lots, final plat r Jeffers pond 6 (Ryland) 21 SF lots, revised final plat ■ Markley Lake (Knaeble) — 38 SF lots, preliminary plat ■ Jeffers Pond 7 - 23 SI= lots, preliminary ..