The URL can be used to link to this page

Home My WebLink About03 18 2013 EDA Draft Minutes PRI ti 9 U t 4646 Dakota Street SE Prior Lake. MN 55372 4 Economic Development Authority Meeting Minutes March 18, 2013 1. CALL TO ORDER President Hedberg called the meeting to order at 4:00 p.m. Present were Hedberg, Kenney, Morris, Choudek and Chromy. Also present was Community & Economic Development Director Rogness, Community Devel- opment Specialist McCabe, and Treasurer Erickson. 2. APPROVAL OF AGENDA MOTION BY CHROMY, SECONDED BY CHOUDEK TO APPROVE THE AGENDA. VOTE: Ayes by Hedberg, Kenney, Morris, Choudek and Chromy. The motion carried. 3. APPROVAL OF MEETING MINUTES MOTION BY CHROMY, SECONDED BY CHOUDEK TO APPROVE THE MINUTES OF FEBRUARY 19, 2013 WITH ONE CORRECTION THAT KENNEY HAD ABSTAINED FROM VOTING ON THE PREVIOUS MEETING MINUTES. VOTE: Ayes by Hedberg, Kenney, Morris, Choudek and Chromy. The motion carried. 4. CONSENT AGENDA No consent items were listed on the agenda. 5. REMOVED CONSENT AGENDA ITEMS No items were removed. 6. PUBLIC HEARING No public hearing was scheduled. 7. OLD BUSINESS A. Sewer and Water Fee Deferral Program Funding Options. Rogness: reviewed the status of this program whereby the EDA allocate $20,000 to the local program's budget for 2013. He noted further that this resulted in a budget balance of $60,000 with a possible reduc- tion of $27,000 for further broadband consulting. Rogness stated that the success of the fee deferral pro- gram depends on adequate funding being provided through the EDA. Chromy: asked whether this item puts light on the need for an EDA "war chest" of funds? Erickson: reviewed a projection showing assumed expenditures and revenues in the future. Kenney: said that these projections become important to the EDA's evaluation of the financial viability of the program. He realized that the revenues create a revolving loan fund that can be self- sustaining at some point in the future. Hedberg: speculated that any amount needed above the EDA's budget would come before the City Coun- cil for an EDA budget amendment. He further noted that this discussion will help the EDA to make good recommendations for the 2014 budget related to fee deferral program funding needs. Rogness: noted that this item is for discussion only; no EDA decision is necessary at this time unless ad- ditional program funding is warranted. �� Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com B. 2012/2013 Business Plan and 2030 Vision & Strategic Plan. Rogness: presented a PowerPoint that supported future strategic public investments for economic devel- opment in three geographic areas: (1) County Road 21/42 intersection area, (2) County Road 21 and State Highway 13 intersection area, and (3) County Road 21 and Revere Way intersection area, including Deer- field and Welcome industrial parks. Rogness further identified strengths and challenges related to econom- ic development within Prior Lake. Morris: recommended that a site for a future data center not be excluded from this recommendation of targeted economic development sites, including a site at the northwest corner of County Roads 18 and 42. Kenney: agreed with these areas of focus, but was unsure of the most southeastern area. Choudek: felt that these changes were important, and that they should be incorporated into the EDA's Business Plan. Rogness: noted that this item is for discussion only; no EDA decision is necessary at this time. C. Broadband Scope of Work with Lookout Point Communications. Rogness: asked Morris to summarize his meeting with Eric Lampland of Lookout Point Communications, Morris: reviewed his discussion with Lampland in order to re- evaluate the status of the BAC's report and to present information to new city council members. Lampland has provided the EDA a proposal to contin- ue fiber network evaluation in three topical areas, including: (1) presentations; (2) investigate existing pro- vider plans; and (3) community building. Hedberg: said there is a "chicken and egg" situation here that seems to warrant public input and involve- ment, but yet there needs to be a defined approach to securing community -wide fiber in Prior Lake. Morris: felt that too much information was presented previously to the City Council without a focus on the advisory committee's recommendation. A clear and coherent presentation is needed this time. Hedberg: asked for more information on how other similar cities have demonstrated viable municipal fiber network systems. Kenney: thinks that previous rejection of some assumptions in the study led to resistance, including such items as take rates and bundle costs. Morris: said that the consultant and committee used very conservative assumptions. Kenney: stressed that a good business model is needed first, and he wondered whether other consultants are qualified to provide this to Prior Lake. Morris: reminded everyone that a very good team had been put together to work with Lampland in 2012, including people like Christopher Mitchell with significant experience in the broadband field. Kenney: said that any future presentations must focus on the system's financial viability and city risks, as well as focusing on the public's needs and wants for high -speed fiber. Morris: said that the committee's recommended structure achieves $500,000 per month revenue within 4- 5 years; currently Morris pays $150 per month for 30 mgb service from Integra. Kenney: wondered if the EDA should wait from the city /county RFP to come back with results, which may provide more information about provider interest in cooperation with Prior Lake and Scott County. Hedberg: believes that the EDA should continue to work on the fiber initiative, but he continues to wonder about what structure makes the most sense for Prior Lake. Morris: said that some changes could be considered, such as having a private contractor manage the tri- ple play services. Kenney: feels that a change of emphasis is needed for the consultant's work, including: (1) review what is needed to be competitive in order to capture clients; (2) what level of assurance allows the city to achieve certain subscriber revenues; (3) what does cable to a house provide at a $40 -$50 per month cost, since the internet changes this. Choudek: agrees that it is important for all EDA members to get on board before a large public investment can be supported. Kenney: recommends that the EDA write the scope of work versus the consultant doing it. 2 Hedberg: said that the EDA would likely support moving forward with more consulting work, but asked staff to schedule Lampland to return for an hour of discussion to write the scope of work. Note: Commissioner Choudek left the meeting at 5:35 p.m. 8. NEW BUSINESS A. Economic Development Financing Tools. Hedberg: agreed that this item should be carried forward to the April meeting due to time limitations. B. Business Subsidies Policy Discussion. Hedberg: agreed that this item should be carried forward to the April meeting due to time limitations, C. Business & Industry Forum Update. McCabe: asked the EDA to consider being a co -host of this event to be held on April 25 at an equal level to the EDAC. Chromy: said that this is a good opportunity to "toot our horn" as a positive public relations event for the EDA and EDAC. Hedberg: expressed hesitations to having the EDA be included at the forefront rather than having the EDAC be front and center to this business event. Rogness: recommended that the EDA support this project within its 2013 budget up to $1,000. MOTION BY MORRIS, SECONDED BY KEENEY TO APPROVE THE EDA'S SUPPORT FOR THE 2013 BUSINESS & INDUSTRY FORUM WITHOUT BEING A CO -HOST, ALONG WITH FINANCIAL SUPPORT UP TO $1,000. VOTE: Ayes by Hedberg, Keeney, Morris and Chromy. The motion carried. 9. OTHER BUSINESS A. Development Update. Rogness: provided stated that time did not allow an update B. Draft Agenda. Rogness: briefly reviewed a draft agenda for the EDA's April 15th meeting, which will include time set aside for Eric Lampland. C. ADJOURNMENT MOTION BY MORRIS, SECONDED BY CHROMY TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 5:56 p.m. Frank Boyles Dan Rogness Executive Director Community & Economic Development Director 3