Loading...
HomeMy WebLinkAboutJune 19, 1997P RIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES JUNE 17, 1997 I) CALL TO ORDER: President Barsness called the meeting to order at 7:05 p.m. Present were: President Barsness, Commissioners Campagnoli, and Schenck, City Manager Boyles, Planning Coordinator Kansier, Planner Tovar, and Consultant Guenette. Commissioner Kedrowski arrived after approval of May 19 meeting minutes. Planning Director Rye and City Attorney Pace were absent. II) PLEDGE: Commissioner Barsness led the Pledge of Allegiance and welcomed everyone to the meeting. III) CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: MOTION BY SCHENCK SECOND BY CAMPAGNOLI TO APPROVE THE MINUTES OF THE MAY 19, 1997 EDA MEETING. Upon a vote, ayes by Barsness, Campagnoli, and Schenck, the motion carried. · Commissioner Kedrowski arrived. MOTION BY SCHENCK SECOND BY CAMPAGNOLI TO APPROVE THE MINUTES OF THE MAY 20, 1997 MEETING MINUTES AS AMENDED. Upon a vote, ayes by Barsness, Campagnoh, Kedrowski, and Schenck, the motion carried. IV) PRESENTATIONS: The presentation was moved to after OLD BUSINESS, since Mr. Wensmann had not yet arrived. V) OLD BUSINESS: a) EDA Forum Review Consultant Guenette reviewed the memo he prepared summarizing the Forum. He summarized the discussion at the forum. He said EDA needs to finalize the ideas and questions raised about redevelopment of the Priordale Mall. Without a grocery anchor, the Priordale re-development doesn't occur, according to the developers. He suggested that downtown may be a better site since the City is already investing considerably in the Library and Lakefront Park. The direction from Forum seems to be towards downtown redevelopment. Priordale Mall I:\EDA \EDAMINUT\61.797. DOC 1 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER doesn't have to be ignored. The report is in draft form and needs to be approved by the EDA. It should be sent to participants asking whether it is complete. Commissioner Kedrowski asked whether the next step would be to send a letter and highlight points made. Consultant Guenette said the City owns substantial property downtown and with some key acquisitions can do some redevelopment and create an ambiance for other development. Commissioner Kedrowski asked what is the next step. Consultant Guenette said to ask forum participants if they agree that the memo reflects the forum proceeding. Commissioner Kedrowski said they need to go somewhere with this and make some decisions fairly quickly on redevelopment. Consultant Guenette said to maximize investment, things need to move forward. Commissioner Campagnoli said she agrees with the report and the proposal for a downtown focus. The conclusion drawn is workable and highly creative. She said they can be enthusiastic about this. Consultant Guenette said it is questionable whether existing businesses would be able to remain in a new Priordale Mall development because of higher rents. The City could be more effective with downtown redevelopment. Buildings could be renovated at lower cost. It doesn't mean we don't need redevelopment of Priordale Mall but the resources are limited, and should be focused where they will be most effective. Commissioner Schenck said recognizing limited resources, there are two key areas being looked at. He said he did not want the EDA to turn its back on the Priordale Mall. Forum Group 4 suggested a multi story, multi-use building. Can we support that? Professional offices are scattered everywhere. Can we market a 4-story office building and maintain retail on first floor? Consultant Guenette said office buildings in town have a low vacancy rate, and can support office development in town. He said the general answer is yes, but other factors are private developer, and what happens to the rest of the land? It is not an impossible concept. Commissioner Barsness said the EDA needs to get a forum report out. He was concerned that the comments about downtown were not discussed at the forum and could be confusing. I:\ED.A\EDAMINUT\61797. DOC 2 Gary Gabrielson said he listened to the discussion and read the reports. He asked if 25 to 30 people are a good representation. He said he would base economic decision on a comprehensive market study to be completed by Fleming. Fleming likes the site and did a marketing study sometime ago. They would like to update the study and possibly move forward. TIF assistance could be used to lower rents for existing tenants. They are reassessing the project to see if there is an alternate way to move forward without TIF. The office with retail has probably been done, but he has not seen it done successfully. He thinks a larger scale project is needed. He is not familiar with the Prior Lake market and whether it could support the required rents. The market is telling you there are not other developers looking at this site. Commissioner Barsness asked if Fleming is proceeding with a market study? Mr. Gabrielson said Fleming has done a study and will update it if they can come up with an economic strategy that works. Commissioner Kedrowski asked if a housing component has been considered on back end of property? Mr. Gabrielson said it has just focused on retail. Commissioner Kedrowski asked what kind of square footage? Mr. Gabrielson said not including the Hollywood site, 80-90,000 square feet is contemplated. There are some problems with the rear of the site, including lot dimension and soils. Commissioner Kedrowski said if project goes without TIF, what about tenants? Mr. Gabrielson said they can work with existing tenants to create the right mix. Commissioner Barsness said what about Highway 13 and 42 corner? It seems like prime development, but SuperValu is leapfrogging to Shakopee. Mr. Gabrielson said he can't confirm it, though he has heard at the intersection that there will be a Rainbow or Cub. Commissioner Kedrowski asked if Mr. Gabrielson would come back in a month to tell the EDA the results of the Fleming Market Study. Mr. Gabrielson said he would do so. Commissioner Barsness asked what to do with the Forum report. I: \ED.A \EDA MINUT\61797. DOC 3 · Commissioner Schenck suggested they remove the opinion part. It looks like we turned our backs on Priordale Mall. · Commissioner Campagnoli agreed. Their promise was to report on input, not to draw conclusions. · Commissioner Kedrowski concurred. He said send it out and ask for feedback. · Consultant Guenette said they should invite Forum attendees to come back to the EDA meeting in July or send a response in writing. · Commissioner Barsness said there was a consensus to remove the last four paragraphs. City Manager Boyles clarified there was a consensus to remove the last four paragraphs and insert a new paragraph inviting feedback and attendance at the next EDA meeting to complete the record. VI) PRESENTATION: a) Wensmann Herb Wensmann is readY to proceed with the Industrial Park. He wants to see County Road 42 and 21 proceed. Phyllis O' Connell, his marketing agent, has made calls. Some large industrial users are interested. Office users would be smaller. · City Manager Boyles explained the County Road 42 and 21 improvements. · Mr. Wensmann said they need TIF help; they are anticipating Class "A" Development. Traffic counts are good. Herb Wensmann introduced Kelly Murray and Phyllis O'Connell. They explained they were in the process of drawing plans. She said they would like to see the City pressure the County to extend 21 to 169. Phyllis O'Connell said she has done some calling and believes there are businesses interested in the industrial/office park. They would like to see the road extended. · City Manager Boyles explained the timing of the CSAH 21 and 42 project. · Mr. Wensmann said they will need TIF help if possible. h\EDA\EDAMINUT\61797.DOC 4 · Commissioner Barsness asked if the zoning was ok. · Commissioner Kedrowski asked how many square feet. · Mr. Wensmann said one potential tenant would require 24,000 square feet office and 60,000 warehousing. · Commissioner Kedrowski asked about the plat. · Mr. Wensmann said they were starting to work out the plans now. VII) OTHER BUSINESS a) Update on Marketing Materials. Planner Tovar said there was money in the budget for a brochure, but only one lot in the Waterfront left. The other brochure is City wide. She asked what does the City want to do with the brochure? City Manager Boyles said the old brochure was to market the community as a whole, the other was to market waterfront. Commissioner Kedrowski asked what are we doing with Scott County EDA? Planner Tovar said the City is a member, and she would ask about the brochure. There is an annual promotional event. Commissioner Kedrowski said wait until after the July 7 incorporation hearing to decide upon the marketing brochure. Commissioner Barsness said they need to review the information to update it. City Manager Boyles said he could, but would prefer to wait until the E.D.A. knows the focus of the piece. Commissioner Campagnoli said they were trying to do too much with a small piece. They should provide special information. The decision on the brochure was placed on hold until annexation of the industrial park area is determined. VIII) NEW BUSINESS · City Manager Boyles said he understands that the EDA wishes to wait until the new member is appointed to finalize meeting dates and times. I :\EDA \EDA MINUT\61.797. DOC · The next EDA meeting will be July 21 from 5:30 to 7:00. IX) ANNOUNCEMENTS: Consultant Guenette said on June 16, the Council approved revisions to the developers agreement for the sake of a 1.65 acre parcel. The ownership of the Anderson project was transferred to the tenant. The property is owned by the EDA. With EDA authorization, closing can be scheduled for the next 10 days. Terms are the same. Changes are 1.78 acre parcel, building size of 25,000 square feet instead of 12,0000, and owner, Mark Hanson. The purchase price is $77,000. EDA authorization is needed to allow closing. MOTION BY KEDROWSKI, SECOND BY SCHENCK TO APPROVE AN AMENDED DEVELOPERS AGREEMENT ON THE 1.78 ACRE PARCEL Upon a vote, ayes by Barsness, Campagnoli, Kedrowski, and Schenck, the motion carried. Consultant Guenette said Gary Gabrielson is here because he represents a client looking for 80,000 square feet who want so come to Prior Lake. They will look at the remaining parcel in the Waterfront Passage. They are optimistic he will come here, but he has some other prospects for final four acres in the Waterfront Passage Business Park. Commissioner Kedrowski asked how close the EDA was to selling this 4 acre parcel. · Consultant Guenette said it was an unusually shaped piece of property, and needs to be marketed before the newly annexed area opens up. · Councilmember Kedrowski asked about a for sale sign at Becker Arena, where is he going? · Commissioner Barsness said to Burnsville. · Consultant Guenette said Becker did not want to go through another construction project. · City Manager Boyles asked what effect does the sale have on TIF? · Consultant Guenette said taxes will continue to be paid, the building is very marketable. · Commissioner Kedrowski said do we have to help market? I:\EDA XEDA MINUT\61797. DOC 6 · Consultant Guenette said refer to various Realtors when questions come up. · Commissioner Kedrowski asked what is the advantage of Scott County EDA? What are the dues? · Consultant Guenette said it is not a significant impact on the budget. The benefit is communication and networking with other communities. · Planner Tovar said the idea is to create a cohesive County-wide EDA where the Cities refer businesses to each other. · Commissioner Kedrowski asked how viable the downtown area is, with the retail on lower level and apartment on the upper level. · Consultant Guenette said potentially very viable. X) ADJOURNMENT: The meeting was adjourned at 8:40 by General Consent. Recording Secretary I:\EDA \EDAMINUT\61797. DOC 7