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HomeMy WebLinkAbout08 01 2013 EDAC rpt 5a 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE REPORT MEETING DATE: August 1, 2013 AGENDA #: 5.a. PREPARED BY: Casey McCabe, Community Development Specialist AGENDA ITEM: EDA UPDATES DISCUSSION: Introduction The EDA held its regularly scheduled meeting on Monday, July 15, 2013. The EDA discussed the following items on their agenda. Public Hearing - Revised Business Subsidies Policy Local Business Incentives Policy (Draft) Quarterly EDAC Update Downtown Initiatives 2014 Budget Discussion EDA Tax Levy History Public Hearing - Revised Business Subsidies Policy The EDA held a public hearing to consider proposed amendments to the City of Prior Lake Business Subsidies Policy, adopted by the City Council on October 18, 2004. The EDA to the City of Prior Lake Business Subsidies Policy. The current policy is somewhat restrictive compared to State Statute requirements. The primary purpose of the proposed amendments is to bring the policy in line with State Statute requirements and eliminate some of the restrictive reporting requirements. The EDA ap- proved a motion recommending the City Council approve the proposed amendments to the City of Prior Lake Business Subsidies Policy. Local Business Incentives Policy (Draft) The EDA reviewed and discussed a newly proposed Local Business Incentives Policy for Prior Lake. During the June meeting, the EDA directed staff to draft a local incentive policy that would complement the Prior Lake Business Subsidies Policy. Since the Business Sub- sidies Policy applies to subsidies of $150,000 or more, the EDA felt that a companion city policy should address all other local business subsidies, which are less than $150,000. The local policy would address many of the same factors, such as agreements, reporting and criteria for assistance. This policy would help guide local decisions for public financial as- sistance to businesses while trying to be more transparent. At the same time, the EDA does not wish to add Quarterly EDAC Update Bill Henry provided an update of recent EDAC activity, including: Business & Industry Forum Follow Up Action City of Prior Lake Open House / Grand Opening Policy Discussion EDAC Bylaws (EDAC Mission Statement/Purpose & Liaisons) Discussion With City Manager Frank Boyles Business Retention & Expansion Survey Status Downtown Initiatives Staff presented a few downtown initiatives related to development, redevelopment, street connections and other issues for EDA information and discussion, including: A proposed new multi-family workforce or senior housing on vacant land along County Highway 21, between Duluth and West Avenues. This 5-acre site may be purchased by Scott County or the CDA, which will then allow the CDA to work with a private hous- ing developer to construct 50-60 units of workforce rental housing using a federal tax credit program. If that option does not work, then the CDA may build and own the same number of senior rental units. A proposed new dental office, as a redevelopment project, to be located at the south- west corner of County Highway 21 and Arcadia Avenue. An existing dental practice in Prior Lake would like to build a new 4,000 square foot office building, preferably in the downtown area. One option would be to acquire an existing house, demolish the struc- ture, and then add some city-owned land along the east side of that lot to create a site of approximately 17,500 square feet. This would require city financial assistance and require the construction of a 2-story building to meet downtown design guidelines. The proposed purchase of a parcel from a willing seller that would eventually be part of future right-of-way for Arcadia Avenue extended between Colorado and Pleasant Streets. Four residential parcels would need to be acquired by the city in order to extend Arcadia Avenue south to Pleasant Street. One owner has expressed interest in selling a parcel to the city. The EDA has previously discussed the possibility of providing a financial incentive (grant) to encourage the demolition of a vacant blighted house on Erie Avenue, which is located on the Monnens Lumber property. The typical cost range to demolish a house is $10,000-$15,000. An update on the Summit Mortgage Corporation purchase of the former Sinclair gas station on the corner of Main Avenue and Dakota Street. The 1,500 square feet space is being remodeled to offices. An update on the newly formed Downtown Business Association which is meeting every other week to discuss ways to create more marketing and events for the downtown area. One example includes a transit bus scheduled to travel between Mystic Lake and downtown during the Farmers Market. Assistant City Manager Kelly Meyer and Mayor Ken Hedberg have been attending these meetings. 2014 Budget Discussion EDA Tax Levy The EDA reviewed and discussed the preliminary (draft) 2014 EDA budget and possible funding sources for the Economic Development Authority Special Revenue Fund. The EDA provided direction to staff regarding expenditures and funding sources for the 2014 budget. A proposed (revised) 2014 budget will be presented to the EDA in August based on direction provided by the EDA. Upon approval by the EDA, the preliminary budget will be presented to the City Council at the September 9, 2013 meeting. Conclusion 2 Updates of EDA activity related to the above listed topics will be presented to the EDAC during the August 1, 2013 meeting. ISSUES: Update only. FINANCIAL None. IMPACT: ALTERNATIVES: Update only. RECOMMENDED Update only. MOTION: 3