HomeMy WebLinkAboutApril 28, 1997P
NE
PRIOR LAKE
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
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Call to Order
MONDAY, APRIL 28, 1997
7:30 p.m.
(Immediately following Joint Meeting)
Pledge of Allegiance
Approval of Minutes
· March 17, 1997
Consent Agenda
· Staff Report on Completion of Top Five Priorities
· Consider Process for EDA Review of Purchase Agreement and
Tax Increment Financing Proposals.
Presentations
· None
Public Hearings
· None
Old Business
· Review Conflict of Interest Statutes and Draft Code of Ethics
Suesan Lea Pace.
· Provide Initial Response to AMCON Regarding Concept
Proposal.
New Bu~ine~
· Finalize Discussion on Strategy and First Steps for Proceeding
with Priordale Mall Redevelopment Project.
9) Other Business
10)
Announcements or Correspondence.
16200 E~t~.~I,~t~,~4~q?~ Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
11) Adjournment, 9:00 p.m.
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MINUTES
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
APRIL 28, 1997
1. CALL TO ORDER:
President Barsness called the meeting to order at 7:15 p.m.
Present were:
President Barsness
Commissioners: Campagnoli
Kedrowski
Schenck
City Attorney Pace
Executive Director Boyles
Commissioner Schmidt was absent.
2. PLEDGE OF ALLEGIANCE:
The pledge was not recited.
3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES:
Motion by Schenck, second by Barsness to approve the March 17, 1997, Minutes adding
a confirmation that the Economic Development. Authority conducted a March 15, 1997,
workshop to become more familiar with development issues in the community.
Upon a vote, ayes by Kedrowski, Schenck and Barsness, no nays, and one abstention,
Campagnoli.
4. CONSENT AGENDA:
a) Staff report on completion of top five priorities.
President Barsness asked that the inventory of potential development sites be added to the
top priority goals. Commissioner Campagnoli suggest, ed each of the five objectives be
labeled as goals and those items at the bottom of the page be incorporated under the
appropriate goals as objectives.
Motion made by Keclrowski, second by Campagnoli, to approve the 1997 Goals by
folding the objectives under the appropriate goals.
Upon a vote taken, ayes by Kedrowski, Campagnoli, Schenck and Barsness.
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b) Consider process of EDA Purchase Agreement and Tax Increment Proposals.
Motion by Kedrowski, second by Schenck, to approve the Purchase Agreement and Tax
Increment Proposal Procedure.
Commissioners Schenck asked for clarification on the statutory sixty day time line. Staff
agreed to keep the EDA apprised if this time line came into play or was a problem.
Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck.
5. There were no Presentations.
6. There were no Public Hearings.
7. OLD BUSINESS:
a) Review Conflict of Interest and draft Code of Ethics.
City Attorney Pace introduced the agenda item. She indicated President Barsness has
expressed a concern about whether he had an inherent conflict of interest because of his
position as president of Prior Lake State Bank. Because of the various conflict of interest
statutes governing the conduct of public officials, President Barsness thought it was
appropriate to have the City Attorney address the Commissioners on the subject.
With respect to President Barsness, City Attorney Pace indicated there was a specific
statute, Minn. State Statute 471.88 Subd. 11, dealing with Commissioners who are
employed by a bank and in the position to make loans.
The City Attorney reviewed generally the various conflict of interest statutes, using a
handout which had been prepared by the League of Minnesota Cities to use at the City
Attorney update. Each Commissioner had previously received a copy of the handout.
The City Attorney indicated that any Commissioner who believes they may have a
disqualifying conflict of interest should feel free to consult with her. If there is a situation
where the Commissioner would receive a direct pecuniary benefit from a matter before
the Commissioner may have a disqualifying conflict of interest. The City Attorney
reviewed a 5 part test outlined by the Minnesota Supreme Court to evaluate potential
conflict of interest issues.
Motion made by Schenck, second by Kedrowski, to accept the City Attorney' s report on
Conflict of Interest and Code of Ethics.
Upon vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck.
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8. NEW BUSINESS:
a) Finalize discussion on strategy and first steps for proceeding with the Priordale
Mall Redevelopment project.
Consultant Guenette indicated he would be surprised if Flemming Company moved
forward with the $15,000.00 market study to determine whether this is the right site. The
joint meeting was not as clear and direct as they would have liked to see. Commissioner
Kedrowski suggested it would be appropriate to go ahead with the Guenette proposal to
conduct an economic development forum but work as well not to loose the Amcon
proposal. He suggested that it may be appropriate to discuss this matter further with the
City Council and have a sounding from them.
Commissioner Campagnoli stated that the proposal by Amcon to loosely presented and
she can not support it without more specific data.
Consultant Guenette indicated the last project fell apart after the developer came forward
with very specific details. The Council did not want commercial retail on the site as
proposed for that developer. Consultant Guenette suggested it would be appropriate for
the City to respond by determining whether the Council wishes retail on the site as well
as other specifics. He confirmed there will be no Lunds or Byerly's on the site. Grocery
stores tend to be part of the template for developers. Certain stores partner with certain
developers. It would be possible for the EDA to encourage some other grocery store or
layout or even a different facade which would be appropriate for Prior Lake. What EDA
needs to know is whether there is fundamental support for commercial retail at this site.
He also believes it is important to know whether the public supports such a process and
project.
Attorney Pace stated that Consultant Guenette is describing a charette. Through a
meeting, ideas and visions are converted into concepts which can be placed on paper in
schematic form.
Consultant Guenette stated that his concept would involved breaking down into small
groups of 10 to 15 persons. Each group would be responsible for providing input on
specific questions about the redevelopment process, City identity, etc. Then the groups
would re-form as a large group to record their conclusions. This information would be
used by the EDA and City Council in determining what steps if any, would be
appropriate to play in furore redevelopment.
Commissioner Campagnoli stated that she believes it is important to have cold hard facts
first. For example, what is Savage going to do with County Road 42 and State Highway
13 intersection. Why don't we know?
Consultant Guenette suggested any commercial retail in the Priordale site will include a
grocery store. He indicated that from a City cost perspective is the best we can do is to
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buy down the land reclamation costs. Commissioner Kedrowski stated that we are
redeveloping an underused asset in the City and that in itself is a benefit. He recognizes
the existing businesses are a strength.
Consultant Guenette indicated the new building will rent in the vicinity of $12 to $18 per
square foot. Grocery stores will get a $4 to $6 per square foot cost because they are in
command of the malls.
Consultant Guenette discussed the implications of do-nothings associated with potential
bankruptcy proceedings with the Priordale Mall and as it relates to the new tax increment
financing legislation.
President Barsness asked whether there is a purchase agreement for the mall. Consultant
Guenette indicated that it is his understanding it is a $2 per square foot or 1.5 Million
Dollars. President Barsness expressed concern about becoming caught in the middle
between the two parties. He indicated that the project is none the less important because
it is the single largest land holding in the community available for redevelopment.
Consultant Guenette discussed the potential for acquiring other parcels to assemble as
part of the project and having known developers involved to build a grocery. President
Barsness stated he was pleased that Festival was a strong franchise on one hand but he
would prefer theaters and other uses over another grocery.
Motion by Kedrowski, second by Schenck, to direct the staff to prepare for an economic
development forum for Tuesday, May 20, 1997 at 7:00 p.m. to solicit public input
regarding the proposed redevelopment project.
Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck.
By general consent the Economic Development Authority agreed that the May 19
meeting should be used as a rehearsal for the May 20 forum. President Barsness stated he
will talk to the Prior Lake American Editor to ask if they would support and publish,
announcements about this meeting.
9. OTHER BUSINESS:
Motion made by Kedrowski, second by Schenck to authorize the staff to prepare an
appraisal for the T.J. Towing property.
Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck.
The~~,ff .,~~meeti, n djourn by general consent at 9:05 p.m.
Frank//~~ Ci~/Manager
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