HomeMy WebLinkAbout08 19 2013 EDA rept 4B
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: August 19, 2013
AGENDA #: 4B
PREPARED BY: Dan Rogness, Community & Economic Development Director
AGENDA ITEM: UPDATE – DOWNTOWN INITIATIVES
DISCUSSION: Introduction
The purpose of this agenda item is to update the EDA on downtown initiatives that
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were previously discussed at the July 15 meeting.
History
The EDA has periodically discussed property and various initiatives within the down-
town area. Discussion on sites may relate to public or private projects. Examples
include the city’s sale of land for the Rock Creek building, and TIF assistance for the
Premier Dance Studio.
Current Circumstances
Updates on six initiatives previously discussed by the EDA include:
1. A new multi-family workforce or senior housing is proposed on vacant land
along County Highway 21, between Duluth and West Avenues. An offer has
been made for this 5-acre site by the Scott County CDA, which will then allow
the CDA to work with a private housing developer to construct 50-60 units of
workforce rental housing using a federal tax credit program. A deadline has
been established for rescission of the offer. If not accepted by the present
owners, litigation could be initiated by either of the parties. If the county can
secure the land, and yet the Sand Company proposal (workforce housing)
does not work, then the CDA may build and own the same number of senior
rental units. .
2. A dentist currently leasing space in Prior Lake is searching for a site to build
on in the downtown area. His preferred site is at the northwest corner of
Colorado and Arcadia Avenue. One option would be to acquire an existing
house, demolish the structure, 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. Chad Olson indicated
that he would contact the residential owner to gauge interest in selling the
property.
3. The city was contacted by a willing seller of property that would eventually
be part of future right-of-way for Arcadia Avenue extended between Colo-
rado and Pleasant Streets. Four residential parcels would need to be ac-
quired by the city in order to extend Arcadia Avenue south to Pleasant Street.
Any further action on this item is on hold until the City Council approves the
street extension as part of the 2014-2018 Capital Improvement Plan (CIP).
4. The EDA has discussed the possibility of providing a financial incentive
(grant) to encourage the demolition of a vacant blighted house on Erie Ave-
nue, which is located on the Monnens Lumber property. The typical cost
range to demolish a house is $10,000-$15,000. The EDA asked staff to
evaluate the potential for additional public parking (e.g. public purpose)
along the east side of Erie Avenue as a benefit to working with the Monnen’s.
Staff has determined that insufficient right-of-way exists to add 90-degree
parking along that side of the street.
5. Summit Mortgage Corporation purchased the old Sinclair gas station on the
corner of Main Avenue and Dakota Street. The 1,500 square feet space is
being remodeled into six offices; work continues.
6. A newly formed Prior Lake Downtown Business Association is meeting every
other week to discuss ways to create more marketing and events for the
downtown area and particularly for retail establishments. One example in-
cludes a transit bus scheduled to travel between Mystic Lake and downtown
during the times of Farmers Market. A proposal and request for funding was
made to the SMSC. The SMSC has not yet acted on this request to the best
of our knowledge. Kelly Meyer and Ken Hedberg have been attending these
meetings.
Conclusion
This is an update to those six items previously discussed by the EDA. The first
three initiatives could help strengthen the Arcadia/Duluth areas as key parts of a
healthy downtown. Other initiatives can help other parts of the downtown by re-
moving blight, adding employees, and increasing marketing and events.
ISSUES: Most of these initiatives require city financial resources in order to move them for-
ward toward implementation. City staff would appreciate any direction the EDA may
wish to offer.
FINANCIAL Unknown at this time.
IMPACT:
ALTERNATIVES: 1. Accept this report.as part of the consent agenda.
RECOMMENDED Alternative 1.
MOTION:
2