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HomeMy WebLinkAboutApril 28, 1997P NE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING 1) 2) 3) 4) 5) 6) 7) ~) 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. I:\ED.A\EDAAGNDA\4.~897.DOC 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. l:\97files\97eda\97edamin\eda42897.doc Page 1 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. l:\97files\97eda\97edamin\eda42897.doc Page 2 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 1:\97files\97eda\97edamin\eda42897.doc Page 3 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 1:\97 f~~7edaminXeda42897.doc Page 4