HomeMy WebLinkAbout12 16 2013 EDA Report 7A Attach2
2012 Prior Lake EDA Activity Summary
Increased communication between the EDA and EDAC
In an effort to provide better communication between the EDA and EDAC, both committees have
appointed a liaison to attend the other committee’s meetings. The duties of the liaisons are to
attend and contribute at regular meetings and provide a regular update of EDA and EDAC activity
to their committee.
Minnesota Rules Chapter 1306, Special Fire Protection Systems
The EDA was instrumental in repealing Chapter 1306 which removed the requirement that
expanding businesses are required to install sprinkler systems in a new building addition. One of
the 2030 Vision and Strategic Plan elements includes economic development with goals related
to: (1) expanding and diversifying the business tax base, and (2) removing obstacles to economic
development. The repeal of Chapter 1306 was viewed by the EDA as one important method to
remove obstacles to economic development.
SCALE Technical Assistance Grant
The EDA was involved in the use of a technical assistance grant from SCALE helped hire a
consultant to assist the EDA Broadband Advisory Committee to complete a Feasibility Study for
Community Fiber Network.
Broadband Fiber Network
The EDA formed a Broadband Advisory Committee (BAC) in September 2011 to complete a
community wide Fiber Optic Network Feasibility Report. The EDA hired Lookout Point
Communications to assist the BAC complete a feasibility study. The BAC presented its findings
and recommendations to the EDA during two meetings in June/July. The feasibility report
identifies and analyzes different models and the necessary public investment to provide a
community wide fiber network. The subcommittee has recommended a “hybrid model” for the
service structure, whereby the city provides basic triple-play services, other service providers
would be allowed to provide all other services through an open access model.
Venture Fair
The EDA worked very hard to plan the first Prior Lake Business Venture Fair. This half-day
event was to begin with a lunch and conclude with a dinner for prospective investors to a local
community angel fund. Two tracks of seminars were planned; one for entrepreneurs and new
business and one for entrepreneurs and angel investors. The local venture fair was to include
session topics such as entrepreneur seed capital, the investment process, fundraising strategies
and business incubation. After a great deal of effort marketing the event, the Venture Fair was
postponed due to lack of registered attendants. The EDA will discuss a possible alternative format
and date for this event at an upcoming meeting and the event may be held this winter or in the
spring of 2013.
Technology Village Incubator
As a key initiative of the EDA, a Technology Village subcommittee was appointed by the EDA
in the fall of 2011 in an effort to assemble and organize human resources to establish a business
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incubator; which is a key objective of the EDA. The EDA provided the subcommittee with
direction to begin evaluating options to implement a technology business facility (incubator) in
Prior Lake, including a report that covers these primary issues:
Identify models of business incubation (public, private, or combination);
Outline financial models to support start-up and ongoing operating costs;
Evaluate opportunities for business incubation in Prior Lake; and
Identify a preferred plan for Prior Lake.
EDA Business Plan
The EDA developed an EDA Business Plan to identify both short-term and long-term goals and
timelines for the EDA to complete its objectives. The business plan also builds upon the 2030
Vision and Strategic Plan in terms of furthering the goals and objectives identified for economic
development. The business plan will not only establish a blueprint for EDA activities, but it will
become the basis for budget requests and decisions necessary to move initiatives forward to
action. After changing and refining the plan five times, the Business Plan was approved by the
EDA in August.
Economic Development Revolving Loan Fund Guidelines
The EDA revised the Economic Development Revolving Loan Fund Guidelines, which were then
approved by the City Council. The previous Prior Lake Revolving Loan Fund Plan was approved
by the City Council in May of 1995 in connection with a grant application submitted to the
Minnesota Department of Trade and Economic Development (DEED) for the benefit of EM
Products. The Revolving Loan Fund Plan for these federal funds had not been updated since its
approval in 1995, nor have funds been re-loaned for eligible business uses. Later in 1998, the city
also received state funds from DEED in order to assist NBC Products; however, no revolving loan
fund plan was approved for these funds. The new revolving loan fund guidelines establishes
policies and procedures to regulate, coordinate, and facilitate the workflow for underwriting new
financing requests, servicing revolving loans, and ensuring borrower compliance with loan terms
and conditions.
Modification of the TIF Plan for District 1-1
On October 3, 2011 the City Council referred a matter to the EDA regarding the use of a nearly
$200,000 balance within Tax Increment Financing District 1-1. The fund balance remains after
the original 1985 District redevelopment project was fully expended at the current site of
Pearson’s Auto Body and Dan’s Auto Repair. This fund balance can be spent on TIF-eligible
redevelopment expenditures once the TIF Plan is modified. The EDA discussed this item during
various meetings in 2011/2012. On May 12, 2012 the EDA recommended a modification of the
TIF plan for District 1-1, which was then approved by the City Council on August 27.
Guests at EDA Meetings
The EDA determined it would be beneficial to hear from real estate developers, site selectors, and
other experts from outside Prior Lake to bring insights on how the City and its economic
development status and potential is viewed from outside the community. The EDA has recently
completed a business plan to identify key strategies for its involvement with economic
development. Certain strategies have begun related to such areas as broadband fiber network and
technology village incubation. The EDA will invite guests to future meetings to help better
evaluate its options to achieve key strategies, including staff from Greater MSP in October.
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Economic Development Policy for Deerfield and Welcome Industrial Parks
To complement the EDA Revolving Loan Fund Guidelines, the EDA also developed a business
assistance matrix showing a comprehensive list of available funding sources for economic
development. In addition, the EDA is establishing plans that target specific areas of the
community as key locations for commercial or industrial growth, such as the Deerfield and
Welcome Avenue Industrial Park area. An Economic Development Plan for Deerfield and
Welcome Industrial parks directs future city actions toward helping achieve economic
development objectives related to additional jobs, businesses and tax base in this area. The EDA
felt it was important to consider city assistance to help development occur in the southeast part of
the city, where industrial lots are available and ready for development.
Downtown Redevelopment Acquisition Opportunities
Throughout 2012, the EDA reviewed possible acquisition opportunities in the downtown area.
Potential sites were considered for possible acquisition for demolition and/or redevelopment
opportunities. The EDA will continue evaluating potential acquisition of development or
redevelopment sites from an investment perspective or in an effort to enhance the downtown area
or community as a whole.
Downtown Area Parking Study Update
In early 2012, city staff, under the direction of the EDA and EDAC, completed a Downtown Area
Parking Study to evaluate downtown parking supply and demand. The purpose of the study was
to determine if the City of Prior Lake and downtown business owners are providing a sufficient
supply of on- and off-street parking stalls to meet the needs of residents, employees and customers
of downtown area businesses. The Downtown Area Parking Study analyzed parking occupancy
survey results to determine the average parking occupancy and peak parking occupancy
experienced on each block in the downtown area. The study also utilized future land use
projections detailed in the Market Potential Analysis of Proposed CR 21 Improvement Options in
Downtown Prior Lake, completed by Maxfield Research, Inc. in December, 2010 to provide an
estimate of future downtown parking needs.
The EDA will play a significant role in getting this
information out to the public and the document will be used to guide future development and
redevelopment in the downtown area.
C/I Pad Ready Analysis
The EDA has been very active in the analysis of all undeveloped commercial and residential
property in the community to determine each site’s “pad readiness”. City staff developed a
comprehensive list of commercial/industrial (C/I) properties in Prior Lake, including their status
as pad-ready, nearly pad-ready, or not pad-ready. SCALE developed a similar system for all C/I
property in Scott County. The EDA will continue to evaluate what resources are available to
provide the necessary infrastructure or assistance to create more pad ready property in the
community.
Long-Term Sustainability
The EDA evaluated funding options to make it a viable and sustainable economic development
organization for Prior Lake. The proposed EDA tax levy in 2013 is the result of its analysis.
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