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HomeMy WebLinkAboutJanuary 8, 1997E~ PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES DATE: January 8, 1997 at 7:00 p.m. Call to Order: The meeting was convened by City Manager Boyles at 7:00 p.m. Present were Commissioners Tom Kedrowski, Pete Schenck, Roseann Campagnoli, Bob Barsness, Sally Schmidt, City Manager Boyles, City Attorney Pace, Mayor Andren, Planning Director Rye, Planner Tovar, Planning Coordinator Kansier, Advance Resources for Development Consultant Roger Guenette, Lee Ann Schutz of the Prior Lake American, and Recording Secretary Oden. II. Pledge of Allegiance Ill. Approval of Minutes A. None IV. Consent Agenda A. None V. Presentations A. History of Economic Development Authority and Rationale for Reformatting Same, Mayor Andren Mayor Andren presented a historical overview of how the newly reformatted EDA came to be. She thanked the members of the EDA for their involvement. She said there was an Economic Development Committee, a charter organization. In 1983 EDC existed as a recommending committee to the City Council. She said at that time the perception was that Prior Lake was not business-friendly. She said during the late 1980's one of the reasons for this was that Prior Lake had to turn down businesses because there was no business space, or zoning conducive to business. At that time, one of the things the EDC wanted was to focus on purchasing the land for the Waterfront Business Park. The land was acquired, and consequently businesses were able to relocate. The goal was one parcel per year, and when it was put together, it was very successful. The City Council realized that the public wanted services in the City and a diversified tax base. At that time, 1800 residential lots were approved in Prior Lake. The EDC was reformatted to become the Business Development Committee. Their main charge was the business office park and encouraging arrival of new businesses not residential. They did so well that there was no need for a committee, so they disbanded. The City Council became the EDA but were not very active. A couple of months ago, the City Council 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 I:~..DA~;DAMINUT~DMN 1897. DOC AN EQUAL OPPORTUNITY EMPLOYER 1 decided they did not want to be the EDA. They wanted to have citizens with a lot of business experience to be on the EDA. Mayor Andren said the EDC and the BDC were recommending bodies. The City Council wanted the EDA to be autonomous, and have the authority to act without Council approval. This takes it out of the political arena, and allows what is in the best interests of the community. She said at the end of 1995, under the old Comprehensive plan, there was 90 acres zoned industrial, and now there are 900 acres zoned for commercial/industrial under the new plan. She said that the City Council has given the EDA all of the necessary powers for autonomy. · Roseann Campagnoli asked how the City's progress could be measured to date. The Mayor said the business office park is one major success. Another is local residents establishing businesses in the City. She said the foundation has been laid, and that was the progress. She stressed the importance of the autonomy of the EDA. City Manager Boyles said that the Council was acting deliberately. First was the business office park owned by the City to "jump start" business. Next was the new Comprehensive plan with added business property inventory. Third, the EDA has been reconstituted. Finally a new zoning ordinance and subdivision code are being finalized to implement the comprehensive plan. He said the EDA has substantial powers to make dramatic changes. VI. Public Hearings A. None VII.Old Business A. Status Report on Development Issues, Roger Guenette. · Roger Guenette presented this report. He went over some of the developments. There are thirty acres of land in the vicinity of the Priordale Mall. He said the old drive in theater site was purchased by Park Nicollet and Frauenshuh. They were attempting to acquire the businesses surrounding that property, to establish a comprehensive retail development. He said there had been ongoing discussions with the owner of Priordale Mall and Reliance Real Estate. There was not a consensus between financing and types of uses. Developers began backing out. The Council said they were still interested. Park Nicollet said they would build a clinic. Roger said it would be helpful if the EDA would look at this issue in some detail, and what types of businesses should be promoted in the area. He said it would be beneficial for the EDA to look at what sorts of issues need to be addressed, and what properties front highway 13, like Velishek's, Hollywood, the gas station. Those properties block the frontage of the land behind them. Park Nicollet & Frauenshuh · Commissioner Schenck asked if all of the property-owners would have to relocate. Property · Roger Guenette said that mainly Velishek's would have to move. I :~EDA~EDAMINIJT~DMN 1897.DOC 2 · Another development involves Herb Wensmann's property at CSAH 42 and Pike Lake Trail. It is a 40 acre tract zoned business park (commercial/industrial). Mr. Wensmann purchased this and asked that it be rezoned. The City has attempted to work with Mr. Wensmann on perhaps an office/warehouse project. The office warehouse projects are very costly. That property has large holding ponds and storm water retention. He said 25% was the net developable here . He said they had looked at reworking the infrastructure so that storm ' water could be diverted north of 42. It could be more economically feasible. Mr. Wensmann told Roger that he would like his own office to be built on that space. If they could minimize costs by building only immediately needed utilities, the viability of the project would be enhanced. Wensmann Property · Commissioner Barsness asked about having the drainage improved on the property, and how that would affect the value. Roger said there weren't that many users that needed 40 acres. Roseann asked how the enhanced drainage affects the runoff. Planning Director Rye said that the runoff would not increase. The ponding area is required to hold runoff. He said they enhance developable area. They spoke with the County about a regional pond across the road. City Manager Boyles said that they could go over details like this in future meetings. Roger said he did not know if the project could be viable where only 11 of forty acres was developable. Commissioner Kedrowski said the area would be ok for residential use, but the Council wanted commercial. Commissioner Barsness asked whether the zoning could be swapped. Roger said an option was diversion of holding pond areas. He said one problem with this was traffic on CSAH 42. Commissioner Barsness asked what zoning was in the best interest of the community? Planning Director Rye said the Council has been reluctant to reduce the inventory of Commercial Land.. Roger went over the Waterfront Passage Business Park. He said they had worked with the Waterfront BDC and it resulted in the Waterfront Passage. He said in the Waterfront Passage, 33 acres Passage were purchased of which 20 + acres were developable because of wetland. He said the City Business incurred costs of 1.4 million for infrastructure. Therefore, the City has tried to recover the?ark $2.06 per square foot. Roger explained Tax Increment Financing. He said that the City is able to use the taxes T.I.F. generated by the difference in valuation between vacant and improved property. The increment goes directly to the City, they get one hundred percent. The development tax IAEDA~EDAMINLrFkEDMN 1897.DOC increment districts have eleven years duration maximum, with nine years of increment. There are five types of tax increment financing districts. The thirty acre site along the Priordale Mall, and property that crosses Highway 13 is a redevelopment district. Because such sites include demolition and relocation the duration is up to 25 years. · Housing TIF districts provide low and moderate income levels. Maximum duration of 25 years as well. There are none in Prior Lake. · There is a soils correction district. There was one but, it was decertified. · There is a hazardous substance subdistrict. There are none in Prior Lake. · Suesan said in order to have the TIF tool, the district must first be established. · Commissioner Schmidt asked what the County and School Districts felt about this. Roger said the School District has been supportive of the City's TIF efforts to develop long term business tax base. The County has a policy on TIF which the City presently complies with. · Roger said project areas could be created, within which there could be any type of tax increment district · Roger said that his understanding was TIF was through EDA but must be approved by Council to be effective. · Suesan said EDA can exercise many powers. The statutes govern its powers. Roger discussed a current Waterfront Passage issue. He said Stan Anderson who just built the 33000 square foot building has indicated he has an interest in doing several other projects. There was 1.6 acres, and a 5 acre site which he would develop if he got exclusive rights on parcel and at time period to initiate development. He would commit to 50 thousand square feet. If this option is not undertaken, the question is what is the likelihood of selling the property at or above Mr. Anderson's proposal. In 1995 there were five parcels sold, in 1996 one, the reason projects did not occur were that most leads were inappropriate uses, and smaller users did not meet the standards of development. Very few people are going to buy 1.6 acres. The five acre parcel was close to being sold to a lumber business. They wanted a warehouse that did not meet the standards of Prior Lake. Suesan said the City Council has to approve TIF. She said EDA should establish standards for TIF. There would be a problem for arbitrary action, so minimum criteria should be established. Roger said what they had done was look at the cash flow. The question should be revisited of how TIF should be used in Waterfront Passage. Most projects are owner occupied. This option will require that Anderson develop the property. He said the information has been provided for discussion and at the next meeting direction would be sought from the EDA. IAEDA~EDAM1NUT~DMN 1897.DOC · Commissioner Barsness said the City's square foot recovery costs were established 5 years ago. The market should be rechecked. · Roger Guenette said short of going and getting an appraisal, the $2.06 is what they needed to meet city costs. · Commissioner Schmidt asked why dollars received above the original goal is rebated. She asked if there was value in rebating less. · City Manager Boyles said another issue is annexation. The owners of a 270 acre parcel adjacent to the office park wish to be annexed, receive sewer and water and TIF.. · Commissioner Schmidt asked where the access was to the property. · Commissioner Kedrowski said on CSAH 27 there was secondary access through easement for industrial park entrance. · Commissioner Barsness asked is there sewer and water, and if City zoning ordinances would apply. · Commissioner Barsness suggested developing a strategic plan before determining EDA objectives. · Commissioner Campagnoli said they are not ready for someone to come before them, they are not yet informed enough to act. City Attorney Pace said for everyone who is new, it would make sense to outline what authority and tools that they have before proceeding. She would give an idea of statutes and processes. · City Manager Boyles suggested that the attorney's presentation, election of officers, and discussion of bylaws and enabling resolution could be deferred until next time. · The meeting was adjourned at 9:15 p.m. Executive Director Secretary 15EDA~EDAMINUT~DMN 1897. DOC 5