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HomeMy WebLinkAboutMarch 17, 1997 o . o . MINUTES OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY Monday, March 17, 1997: 5:00p. m.® Fire Station City Council Chambers Call to Order: President Barsness called the meeting to order at 5:15 p.m. Present were: Commissioners Barsness, Kedrowski, and Schenck, City Manager Boyles, City Attorney Pace, Consultant Guenette, and Executive Secretary Oden. Pledge of Allegiance: President Barsness led the Pledge of Allegiance and welcomed everyone to the meeting. Approval of Previous Meeting Minutes: a) Minutes of the February 24, 1997 Economic Authority: Development City Attorney Pace added the following changes: Page 7 the last bullet should read, "The City Attorney said when acting in their official capacity, members are insured by the LMCIT. She assumed actions taken by the EDA would be under official capacity." Page 10 the sixth bullet should read, "City Attorney said that a subcommittee should be publicly authorized to negotiate. "The key is that it needs to be a subcommittee, and the next sentence, "if the subcommittee does not constitute a quorum, then they are not subject to the open meeting law." If the subcommittee is a majority it is subject to the open meeting law. If it is a minority, then it is not. Consent Agenda a) None 5. Presentations a) None 6. Public Hearings a) None Minutes Revisions 16200 E/~]~f~rA~$'.~.pP~i~.i~.~,7~i~C~sota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 4417-4245 . Old Business a) Review Conflict o[ Interest Statutes and Draft Code of Ethics Suesan Lea Pace- This item was deferred until the next meeting. b) Review Proposed Mission Statement and 1997 Work Objectives Mission Statement ! EDA for Economic Development Authority. WorkObjectives. City Manager Boyles reviewed the agenda report for item 7B of the March 17, 1997 EDA, which presented the EDA Objectives and Mission Statement. He said EDA should further review them to be sure they were accurate, and make sure that they were prioritized. Commissioner Kedrowski said they could be divided into short and long term goals, and make some of them ongoing. Commissioner Barsness reviewed the goals. The first item, Sell two acres of Business Park Property, the EDA felt it was short term, which would mean within one year. City Manager Boyles said Consultant Guenette could provide recommendation. Consultant Guenette said there was currently the financial wherewithal, if the City wanted to, assuming there would be no changes in present statutes that would cut off TIF. This would be a short term activity Meeting with downtown business owners; this goals was agreed to be short term. Developing a plan to capitalize on the traffic at the Shakopee / Mdewakanton Dakotah Community and the Wilds was agreed to be short term. Developing promotional materials was agreed to be short term. Expand Business Office Park was agreed to be short term. Prepare a redevelopment plan and policy for Priordale Mall and Park Nicollet site was agreed to be a short term goal. C:\MSOFFICE\WINWORD\EDA XEDA 31797. DOC Develop incentives to have Prior Lake residents to establish and maintain their business within the City was agreed to be ongoing. Explore economic development linkages with Shakopee and Savage was agreed ongoing. Prepare tax increment financing plan and policy statement was agreed to be a short term goal. Review and comment on County TIF, Local effort TIF and Economic Development Policies was agreed to be ongoing. Explore the relationship between housing availability and business development was agreed to be short term. Commissioner Barsness asked if the EDA wanted to further divide the goals by establishing specific priorities in the ongoing and short term area. City Manager Boyles said from a staff perspective, it would be easier to understand priorities if the items were divided into what needed to be accomplished within the year. Commissioner Kedrowski asked whether staff thought there were certain goals that should be higher priority. City Manager Boyles said "Prepare Redevelopment Plan and Policy for Priordale Mall", should have a high priority if the EDA is to have an effective impact there. This should be looked at within the next year. Commissioner Schenck said it should be the number one goal. Commissioner Kedrowski said "TIF Policy Statement" is critical, if annexation comes up, and Priordale Mall should be driven by this policy, so TIF should really be number one. Commissioner Schenck said then Priordale Mall should be number two goal. City Manager Boyles suggested "Expand Business Office Park", as another priority item. C:\MS OFFICE\WINWORD\EDA",.ED A31797. DOC 3 Commissioner Kedrowski suggested developing a plan to capitalize on traffic generated by Shakopee Mdewakanton Community should be the number four goal. He said the cars driving right through Prior Lake, down 42, down 83, either patronize the Wilds or the Casino, and the City has not made an attempt to divert the traffic to our local business or industry. Whether that is possible and to what extent it would be possible is not known, but there is a lot of traffic, and some sort of attempt should be made to capture it if possible. Commissioner Barsness suggested that could be a brainstorming or marketing discussion at this point, and did not need to be considered a priority requirement for staff. Commissioner Kedrowski said it was an opportunity that should be looked at, since money keeps going into the infrastructure, as in expanding 42 and 21. The driving force for these improvements is the casino. Consultant Guenette said current traffic patterns don't route the traffic through the town; the patterns move down 42 and 83, and Shakopee and the river crossing. Commissioner Kedrowski said it would probably be something on 42 and 83 or if traffic is moving up from the south off of the new 21, it could be through the main corridor. Consultant Guenette said once 21 is built, there will be more traffic through town. He said to do something to promote commercialization at the intersection of 42 and 83 result in some people spending money in that part of the City, but would not bring people into the town. Commissioner Barsness said a concern was the staff time, dollars, in each of these areas what they could do when. He suggested that staff should estimate project completion time, and person hours. City Manager Boyles said with the 1-4 identified, TIF Policy Statement could be gleaned from other policy statements, the Redevelopment Plan is something that has been worked on, as is Expansion of the Business Office Park, and Prepare a Plan to Capitalize on casino traffic, staff and EDA should be able to do in 1997. C:\MS OFFICE\WINWORD\EDA",.ED A 31797. DOC Planning Director Rye said with #1 Developing TIF Policy and #2 Priordale Mall Redevelopment Plan, yes. #3, Expand Business Office Park, there would not be much staff time required. #4, Develop a Plan to Capitalize on Traffic, could be a 10 minute conversation or a significant study. The staff could come up with a response. Commissioner Schenck said that the Council had a survey done out there, and it specifically laid out the types of development that could be expected along 42 and 83. Commissioner Kedrowski said some numbers were flawed with that particular survey. City Manager Boyles said it was a market projection, so there was some questions, but it could be used as a base and could be modified with the information we have. This is a plan, we are not actually talking about implementing the plan as yet. Commissioner Kedrowski said staff should come back with a time commitment. Commissioner Barsness said the two County TIF Policies could be incorporated into the EDA's policy statement. Commissioner Schenck said development promotional materials will go with all the projects. Commissioner Kedrowski asked City Manager Boyles for staff estimates on timelines for projects. City Manager Boyles clarified the EDA should look at 1-5 for first year, with promotional materials as the fifth priority. Commissioner Schenck said promotional materials will be overlying everything else they will try to do. Commissioner Kedrowski said the rest of the goals, not 1-5, should be put onto a timelines so the EDA has direction on what it will take to accomplish these things. Commissioner Barsness said the EDA should add "Meet with Downtown Business Owners for Redevelopment" to the top priorities. C :",,MSOFFICE\WINWORD\EDA \EDA 3.1797. DOC 5 There have been a number of projects to be seen as potentials-existing commercial area should not be pushed back. Commissioner Kedrowski said the EDA needed to get property owners one on one, and meet with those who have not been as supportive in the past. Most objections have been from the cost. In meeting with business owners, EDA could find out the mix of businesses they want attracted down there. The EDA has not done enough communicating to truly try to make any kind of a plan everyone can buy into it. Commissioner Schenck said "property owners", rather than "business owners" are ultimately who the EDA needs to talk to. Consultant Guenette said information that impacts Priordale Mall redevelopment may or may not keep as priority, but in a 12-36 month period it could be impacted by EDA and Council. Commissioner Barsness said the EDA should review existing commercial properties, diagram and synopsis of each property, should be established as short term goal. MOTION BY BARSNESS SECOND BY SCHENCK TO APPROVE THE MISSION STATEMENT, AND HAVE STAFF REVIEW THE OBJECTIVES AND RETURN WITH TIME REQUIREMENTS AND PRIORITIZATION AND APPROVE TOP FIVE OBJECTIVES AND MISSION STATEMENT. o Upon a vote, ayes by Barsness, Kedrowski, and Schenck, the motion carried. New Business a) Consider Recommendations on Tax Increment Financing Plan and Developers Agreement for Area 2-8, Stan Anderson. City Manager Boyles reviewed agenda item 8A of the March 17, 1997 EDA meeting. Mr. Anderson would construct the 12,000 square foot building on the 1.6 acre parcel. The developers agreement and the plan are included in the EDA reports. Staff asked that final approval would come from the City Council. Consultant Guenette said the Developers Agreement was anticipated for Council approval on April 7th. He said it was in line with what was TIF Recommendation C:\MSOFFICE\WINWORD\EDA \EDA 31797. DOC 6 discussed at the previous meeting. He said a survey was forthcoming, which would include an exact legal description. Commissioner Kedrowski asked whether Regency Coffee executed a lease, Consultant Guenette said yes. MOTION KEDROWSKI SECOND BARSNESS TO APPROVE REPORT AND FORWARD TO COUNCIL. Upon a vote, ayes by Barsness, Kedrowski, and Schenck. Process-Review of Purchase b) Consider Approval of Draft Process for EDA Review of Purchase Agreements and TIF proposals. Agreements and Tax Increment Financing Proposals. City Manager Boyles introduced item 8B of the March 17 EDA meeting, which was discussed at the last meeting. Planning Coordinator Kansier presented the draft process report, which included fifteen steps that Concept Plan / Projects could move through. She noted this would be for neither approval nor denial, just bringing forth each point. Commissioner Schenck asked when the 120 day approval process would begin. Planning Coordinator Kansier said when an application was submitted (for site plan approval or subdivision), is when it was subject to 60 or 120 day approval process. Once a zoning or subdivision approval application was submitted, that which would go through the City Council. City Attorney Pace said the documents for the Anderson deal were approved and had a provision that they had to go through a site plan process. That puts the City at a disadvantage if a contract was approved, then it goes through the official City Approval process, and they come up with something that should have been incorporated in the document. This would be consistent if only the City were involved. From a legal perspective, it would be a problem if contract said go ahead, and then the City did not want to approve the CUP or PUD. Consultant Guenette said it would be OK if documents were prepared, but not offered for execution. C:\MSOFFICE\WINWORD\EDA \.EDA 3.1797. DOC City Attorney Pace said there may be one step too many that requires Consultant Guenette to waste time depending on site review. The "EDA approves applicable agreement subject to..." was to send the message to the developer that subject to the City approval, there is a deal here. The agreement has not been entered into but the commitment has been made. Consultant Guenette said EDA could hold Development Agreement aside and not execute documents until deal negotiated. City Attorney Pace said the question arose when looking at Paragraph 11 in the Development Contract, which says that it is subject to site approval. That is where the City should step it back, so there is not a contractual relationship. Consultant Guenette said switch step 8 up to 4 or 5. City Attorney Pace said maybe it would be helpful to reorder these steps where they are out of order. She said Consultant Guenette should not negotiate until EDA reviews. Bob said so put 8 after 4 or 5. Planning Coordinator Kansier said she liked going through DRC first, because once there have been negotiations, sometimes it is taken as a given that there is a contract, but it could come back if something is not complete. Commissioner Barsness asked where are we tonight, with this recommendation? Consultant Guenette said number 10, requiring City Council approval, and now it would go through review and permitting process, and the Council may conduct a hearing. Councilmember Kedrowski asked, in the interest of facilitating the goal of creating a good atmosphere between developers and the City, how does this procedure compare to other Cities? Planner Kansier said the statute dictates rezoning, etc. She said commercial development in the City was not difficult. C :\MS OFFICE',WINWORD',ED.A \ED A 31797. DOC o Councilmember Kedrowski said he wanted to know if it was user- friendly and a good process. Should be thinking in terms of the end user. Planning Director Rye said the steps here were not inconsistent with those in most communities. Many of these things are required by statute. City Manager Boyles said define the steps, and go over from whom it was a function, whether it was staff, EDA, Council, or Developer. MOTION KEDROWSKI SECOND SCHENCK TO APPROVE DRAFT EDA PROCESS. Upon a vote, ayes by Barsness, Kedrowski, and Schenck, the motion carried. Fed Impact Aid Other Business a) Federal Impact Aid. Planner Rye said he was contacted by a representative from Congressman Menge's office who was asking for more information on what Prior Lake was looking for; she was of the opinion that base closing aid, etc. was all that was available, but would further pursue it and get back to the City. Development Proposal- Park Nicollet b) Park Nicollet Clinic Development Proposal. Planning Director Rye went over the Park Nicollet Clinic Development site. The initial building was 14-15,000 square feet. They are showing potential expansion on both site. They are at a point where they need to get in the ground. There is no TIF for this. Planning Coordinator Kansier said it was a choice. Planning Director Rye said Park Nicollet expressed surprise that they would have to make the right-of-way available through that site. Commissioner Kedrowski asked if there would be a divider between Park Nicollet and Velishek. C:\MSOFFICE\WINWORD\EDA \EDA31797. DOC 9 Planning Director Rye said it will be constructed by Building Permit. The two page developer's agreement suggests a 9 ton standard. Initially, it will be private, but will become a City Street. A sign will be placed as private land. The development agreement sets out what they will be responsible for constructing. City Attorney Pace said if they were anxious to move quickly, it would be platted. They were given two options. Commissioner Kedrowski asked about the access for the other business owners. City Attorney Pace said they are not eliminating an access. It is not a City road. Consultant Guenette said it is just part of the parcel, they have legal right to put a fence on either side. City Attorney Pace said from Franklin Trail to that curve, they would build it to City Standards. Commissioner Schenck asked about condemnation procedures. City Manager Boyles said they were trying to be developer friendly, and let them establish timing. City Manager Boyles said they had talked about TIF in that area; those increments could be available to assist in ring road construction. Commissioner Barsness said isn't that the normal process? Commissioner Kedrowski said increments / funds could help pay for ring road, underwrite costs for redevelopment. Commissioner Kedrowski said there should be tax increment financing. Lee Ann Schutz of the Prior Lake American asked if the road in front of Velishek's would be closed. · Planning Director Rye said that it was part of Park Nicollet property. C :\MSOFFICE\WINWORD\EDA",ED A 31797. DOC 10 · Ms. Schutz said then Velishek's would have a problem with no access. Planning Director Rye pointed out the various accesses available to Velishek's. · Consultant Guenette said they will have less space and a worse access. Commissioner Kedrowski asked if they would lose the access off 13 and Toronto for the Priordale Mall Property. · Consultant Guenette said ring road ties in. · Planning Director Rye showed where clinic building will sit. Consultant Guenette said that anticipates acquiring 14 acres from Boderman. He said there is 80,000 square feet of retail, and compared to Frauenshuh, it is a small suburb and neighborhood in large City. This scheme is similar to what Frauenshuh initially showed, but now they think they have the retailers. Commissioner Kedrowski said his position in TIF was they would use it to buy land and level building, and was this consistent? Consultant Guenette said they need to find out if EDA is interested in the concept of this type of development. Commissioner Kedrowski said something like this is the only thing that will work. Consultant Guenette said Boderman said they were ready to cash chips in on mall, tenants were being lost, and if this situation comes up, then it will be a long time until this property is available for redevelopment. Commissioner Kedrowski said he knows this is not what they originally wanted, but the EDA should at least consider this idea. Commissioner Schenck said he does not want to discourage development, but we also need to consider our mission statement which says we want diversification in development. This is not diversification. C:\MSOFFICE\WINWORD\EDA \EDA 31797. DOC 11 Commissioner Barsness said we need to look at some different meeting times between now and the next meeting. Let Frank know what good times and dates are. 10. Announcements or Correspondence. 11. Adjournment The meet' was adjourned at 6:58 p.m. Recording Secretary C:\MSOFFICE\WINWORD\E.D.A \lEDA31797. DOC 12