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HomeMy WebLinkAboutJuly 21, 19971) 2) 3) 4) 5) 6) PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MONDAY, JULY 21, 1997 5:30 p.m. Call to Order · Introduction of New Member Pledge of Allegiance Approval of Minutes · June 17, 1997 Consent Agenda · none Presentations · Follow Up from Gary Gabrielson Regarding Priordale Mall Old Business · Response from May 21, 1997 EDA Forum Attendees Regarding Forum Notes and Conclusions. New Business · Establishment of Economic Development Authority Depositories and Other Financial Issues. *Designation of Official Bank *Designation of Persons to Sign EDA Checks · Discuss 1998 EDA Budget Issues 8) 9) Other Business · Review of EDA Progress toward Achieving 1997 Goals and Objectives Adjourn- 7:00 p.m. 16200 E~a6ll~0~¥~ Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER REGULAR MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY July 21, 1997 5:30 - 7:00 p.m. 1) CALL TO ORDER: President Barsness called the meeting to order. Present were: President Barsness, Commissioners Campagnoli, Kedrowski, Schenck, and Underferth, City Attorney Pace, Executive Director Boyles, Planning Coordinator Kansier, Executive Secretary Oden. · Commissioner Dick Underferth was introduced as a new member. 2) PLEDGE OF ALLEGIANCE: President Barsness led the Pledge and welcomed everyone to the meeting. 3) CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: MOTION BY SCHENCK, SECOND BY CAMPAGNOLI TO APPROVE THE MINUTES OF THE PREVIOUS EDA MEETING. Upon a vote, ayes by Barsness, Campagnoli, Kedrowski, and Schenck, abstention Underferth, the motion carried. 4) CONSENT AGENDA: There was no Consent Agenda. 5) PRESENTATIONS: Gabrielson - Priordale Mall Gary Gabrielson of Asset Management presented ideas for redevelopment of the Priordale Mall. He said they were looking for comments about the proposed concept. The site plan utilizes land currently owned by the Bodermans with the exception of a small parcel of land owned by Marquette Bank. He said they included a strip center of 23,000 square feet, along Toronto Avenue. The main anchor would be Festival Foods. They are working with Hooligan's to allow them to stay in their current location. He said they would work with existing tenants in relocation, in building the strip center first. They plan not to ask the City for assistance in the project, although the cost estimates for the project were not yet completed. Doing the project without City assistance would mean greater cost for the tenants. He said within 2-3 months, the plan should be complete and forwarded to the City staff. · Commissioner Schenck asked about Hooligan's restaurant, whether the structure or the facility would remain. · Mr. Gabrielson said both. C:",MSOFFICE\WINWORD\EDA\EDA72197.DOC 1 16200 Ea§le Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Commissioner Schenck said the frontage road paralleling 13 looks like parking. He said he doesn't see a way to bring potential customers in via the ring road. It looks like there is a barrier. Mr. Gabrielson said they are working within the confines of the site. The access is limited. Conceivably, there could be access behind the center by the grocery store and behind the bank. · Commissioner Schenck described HWY 13 access concerns, are you showing existing condition? · Mr. Gabrielson said yes. · Executive Director Boyles asked whether a grocery store would be first? Mr. Gabrielson said they actually could tear down a corner of the existing building, and build a grocery store, then build a strip center, and relocate tenants into the new strip mall. Executive Director Boyles asked whether Hooligan's would be reusing existing structure? · Mr. Gabrielson said yes. · President Barsness asked about the hardware store. Mr. Gabrielson said the tip of the new retail strip runs through where the existing hardware store is, so there will be a conflict until they decide what to do with it. · Executive Director Boyles asked about the Hollywood Restaurant. · Mr. Gabrielson said there were no plans to change that · President Barsness clarified that they were not looking for help from the City. · Mr. Gabrielson said no, but if they had financial assistance, the rental costs would be less. · Commissioner Underferth asked if Hooligan's would stand alone. · Mr. Gabrielson said yes. · Commissioner Underferth asked about the rent structure. C :\MS OFFICE\WINWORD\EDA",.ED A 72197. DOC 2 · Mr. Gabrielson said they should have the economics in about six weeks. Commissioner Under£erth askecl a]3out the anchor tenant. · Mr. Gabrielson said it is a Festival store of about 45,000 square feet. Commissioner Underferth asked had anyone from the City looked at this concept to address the ring road? Mr. Gabrielson said no this is first showing. · Commissioner Underferth said there is apt to be more comments about the ring road. · Commissioner Schenck asked where would the ring road come in approximately? · Planning Coordinator Kansier said somewhere just at the back of the Hollywood. · Consultant Guenette said the ring road location was never definitively estabhshed. Commissioner Schenck said if they could move the road, where would Mr. Gabrielson prefer to see it? Mr. Gabrielson said with this layout, it does not make a big impact on this project. The ring road will help traffic flow that wants to bypass the intersection. He said there may be a benefit for it being at back of center, and come between the west side of grocery store and the bank. This would enhance the ability to get in and out. There will be two separate sets of ownership. Commissioner Underferth said the plan shows future expansion. Does this maximize the site? Mr. Gabrielson said this maximizes the site. The Festival expansion would be about ten years in the future. Parking is set for as though the expansion were done today. Mr. Roslanski, a restaurant consultant working with Hooligan's, said they wanted to use the existing restaurant. The slab, and concrete walls, would look like a new facility, and would be redesigned. They would add banquet rooms and a kitchen area. · Commissioner Schenck asked about the existing square footage. C: \MSOFFICE',WINWORD\EDA \ED A 72197. DOC 3 · Mr. Roslanski said 5100 square feet. The new facility would add about 1000 square feet. · Executive Director Boyles asked if the restoration is economical? · Mr. Gabrielson said no, not typically, but this is an unusual opportunity. This is feasible and attractive. · Executive Director Boyles asked if the market study is concluded. · Mr. Gabrielson said the study was not concluded. They are waiting for the updated market study from Fleming. · Consultant Guenette asked what the total retail square foot is of occupied space in the existing mall. · Mr. Boderman said there is 62,000 useable square feet. · Consultant Guenette asked what is occupied? · Mr. Boderman said 40,000 square feet are leased. 6) OLD BUSINESS: A) Response from May 21, 1997 EDA Forum. EDA Forum Response Executive Director Boyles introduced the item. He said the EDA asked participants of the forum to respond by fax, marl, or in person if they had additional comments about the forum notes. He had received no further comments. · President Barsness asked for any further comments on the forum. There were no comments. Commissioner Campagnoh asked how the results of the Public Forum mesh with Mr. Gabrielson's presentation? The presentation seems to be the opposite of the forum conclusions. Executive Director Boyles reviewed the notes from the forum: they desire better retail facilities, diversity of business, redevelopment concept, teen center, health clUb and recreation opportunities. He said the forum participants felt TIF should not be provided if a grocery is the anchor tenant. There were concerns that existing tenants should not be pushed out. It appears there are some entertainment options. C :\MSOFFICE\WINWORD\EDA \EDA72197. DOC 4 Consultant Guenette said his perspective was there was consensus from the forum that it would be nice to see redevelopment. It is fine to redevelop the facility, but likely tenants with the grocery store are a liquor store, drug store, dry cleaners, etc. Developers will do investment as they best see fit. He said with the results of discussions, other issues remain unaddressed. Existing retailers will be without a place to run their business, because they will not be able to afford the new, higher rent. · Commissioner Campagnoli said she would be very disappointed if they went to the trouble of asking the community their opinion and then ignored it. · President Barsness said the City could not tell them what to build if it has no economic interest. Commissioner Kedrowski said maybe the EDA should now look at the downtown area. This proposal, privately funded and zoned correctly would take the taxpayer off the hook. · President Barsness said that the current major tenants are continuing as they presently exist. He said he is not sure what to do with the report. Commissioner Underferth said that if a private developer wants to do it, current business owners will understand that the rent will change. He said he was very concerned at what the rent structure will be, but thinks there would be some considerations for current tenants. · President Barsness said there is no inconsistency because they were not talking about City assistance any more. · Commissioner Kedrowski said they should take the report and ideas and use them downtown. He said Commissioner Campagnoli has a valid point. · President Barsness said this would provide an opportunity for mall tenants elsewhere within the City. Commissioner Campagnoli said if the City is not involved financially, it changes the picture. Forum attendees said they wanted some things in the community. She said they could put the report on the shelf, or could let it live somewhere else. She encouraged the EDA not to leave behind the forum conclusions even thought it does not have to be at the Priordale Mall. · Commissioner Underferth said that is why he asked about future expansion. It presents an opportunity to look at retail space. C:\MSOFFICE\WINWORD\EDA \EDA72197. DOC 5 Consultant Guenette said there will be different tenants. New tenants will further displace existing tenants. Downtown may offer a more viable option. He said this type o£ strip mall is not the type of plan suggested for downtown. · Commissioner Schenck said this forum and subsequent report had more of an impact. He said he was not prepared to hear Gary say they were not seeking City finances. The forum provided ideas for redevelopment and now the EDA can take the content of the report and focus its energies downtown and start there and make it good. It could provide a catalyst for downtown redevelopment. Official Bank and 7) NEW BUSINESS: Designee to Sign Checks A) Designation of Official Bank and Persons to Sign EDA Checks · Executive Director Boyles outlined the staff report, to designate an official bank and signatories. MOTION BY KEDROWSKI SECOND BY CAMPAGNOLI TO APPROVE EDA RESOLUTION 97-XX DESIGNATING MARQUETTE AS OFFICIAL BANK AND PRESIDENT BARSNESS AND EXECUTIVE DIRECTOR BOYLES AS SIGNATORIES FOR EDA CHECKS. Commissioner Schenck said the EDA was estabhshed with Sally Schmidt as treasurer, but accounting is accomplished in staff. He asked why have a treasurer position when no one sign checks? · City Attorney Pace said the treasurer does not have to be the one who signs. · President Barsness asked if the resolution now includes both signers. Upon a vote, ayes by Barsness, Campagnoli, Kedrowski, Schenck, and Underferth, the motion carried. Treasurer MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE DICK UNDERFERTH AS TREASURER Upon a vote, ayes by Barsness, Campagnoli, Kedrowski, Schenck, and Underferth, the motion carried. Disscussion of 1998 Budget Issues 1998 Budget Executive Director Boyles introduced the item. The requirement of bylaws is that the EDA must prepare a budget. The staff is now in the process of reviewing the City budget. He briefly reviewed the budget allocations. The EDA C: \MSOFFICE\WINWORD\ED A \EDA 72197. DOC 6 has a $54,832 budget. It does not reflect the $2,400 per diem for meetings for commissioners. · President Barsness asked if they could come back to the City Council with special projects. Executive Director Boyles indicated that City funds are allocated once the budget is approved but reallocations can be made by the Council. · President Barsness said there are improvements downtown, these would be assessed and would not need to be in budget. MOTION BY KEDROWSKI SECOND BY UNDERFERTH TO ADOPT THE 1998 BUDGET. · Commissioner Schenck said the Professional Services hne item shows expenses at 40% for 1997 for Advance Resources but the expenditure exceeds 40%. · Executive Director Boyles said Advance bills a month in advance, so one extra month is shown. Consultant Guenette said he needed to talk to the EDA about the Advance Resources contract, and additional special projects. He said he had not had the opportunity to get into detailed discussion. The retainer is sufficient but there should be an adjustment for additional work required. · Commissioner Kedrowksi asked what kind of dollars Advance wants?. · Consultant Guenette said there could be substantial work activity, with the Business Office Park, Priordale Mall, and shift to downtown. · Commissioner Kedrowski said they need a number. Executive Director Boyles said Advance receives: $1,500 per month retainer, and $7,500 with every TIF closing. He said the staff should look at the relationship and contract and see how it could work better. · President Barsness suggested that they table approval of budget. · Commissioners Kedrowski and Schenck withdrew motion and second to adopt the budget. MOTION BY KEDROWSKI SECOND BY SCHENCK TO DEFER CONSIDERATION OF THE 1998 BUDGET TO THE AUGUST MEETING. C:\MSOFFICE\WINWORD\EDA \EDA 72197. DOC 7 · Commissioner Underferth asked if that is do-able in terms of time? · Executive Director Boyles said there is only one area to look at. · Consultant Guenette said there are a couple of areas: downtown, Wensmann, and Waterfront. He needs to set an estimate. · Upon a vote, ayes by Barsness, Campagnoh, Kedrowski, Schenck, and Underferth, the motion carried. · Commissioner Schenck asked about the Star Cities conference, what do they do there? · Executive Director Boyles said they do not do a lot there. · President Barsness said he was involved when they became a Star City, and it was because all the surrounding cities decided to do it. · Councflmember Schenck asked if the City pays the $200 per year to keep the signs up? · Consultant Guenette said it sends a message to the Minnesota Department of Trade and Economic Development. The conference is an opportunity for staff to network with others in economic development. If they get a substantial project will seek participation from the state in funding aspect of the project. It is a Public Relations thing. He said he recommends the staff attend the conference. 8) OTHER BUSINESS A) Meeting date and time. · Third Monday of the month at 5:30 p.m. was agreed upon time. B) Goals and Objectives: 1) Redevelopment Plan and Policy for Priordale Mall · Consultant Guenette said the forum meets one of the goals. A specific plan that is facilitated by the EDA is not going to happen with the Priordale mall, but will happen. He said he wanted to know if the EDA was authorizing him to move in direction of downtown. · Commissioner Kedrowski said redevelopment will happen downtown. · President Barsness said yes the EDA wants to focus on downtown, and should look at these goals each month. Redevelopment Plan Priordale C :",,MSOFFICE\WINWORD\ED A \EDA72197. DOC 8 Waterfront Passage Business Park Expa 2) Expand Business Office Park Executive Director Boyles said the Minnesota Municipal Board approved annexation of 261.25 acres into the City of Prior Lake. Of this, 60 acres will be Deerfield Business Park which is an extension of the Waterfront Passage Business Park. President Barsness asked what should they do as an EDA? Executive Director Boyles said they don't own property. The development will be privately driven. The issue of Tax Increment will have to be addressed by the EDA and Council. TIF Policy 3) Prepare TIF Policy, Review and Comment on County, Local TIF Consultant Guenette said the City has sent a report to the auditor updating where the City is going with TIF. We also need to address a TIF policy for the office park expansion. President Barsness said so the EDA should wait for the private downtown developer to come to us. Consultant Guenette said the annexed property will not develop in the City without roads. Before negotiating, it would be good to know the options. President Barsness asked Consultant Guenette to prepare a memo about the options. Consultant Guenette said he will meet with City staff 4) Meet with Downtown Property and Business Owners to Explore Redevelopment Opportunities. Downtown He said the EDA should receive an executive summary regarding the old reports on downtown redevelopment. Consultant Guenette asked what are the time frames on expansion for library? Executive Director Boyles said the project must be done in three years. They have distributed requests for professional services which will be received in 30- 45 days. C:\MSOFFICE\WINWORD\EDA\EDA72197.DOC 9 · Consultant Guenette said it is important to coordinate any downtown redevelopment with the library. He said he will work with staff to prepare a synopsis for the EDA · Commissioner Kedrowski confirmed that there was 3 years from election to expend funds · President Barsness said Consultant Guenette could work with staff on that too. · City Attorney Pace said there should be some collaborative discussion on Tax Increment Financing with the Council before approaching downtown property owners. · Consultant Guenette said he would prepare a memo on financing issues. 5) Develop a Plan to Capitalize on traffic with the Mdewakanton Community and the Wilds. · President Barsness introduced the item and asked about promotional materials. · Executive Director Boyles said the EDA decided to wait for the results of the incorporation hearing before deciding on the focus of the marketing materials. · President Barsness said they could address, or wait until they have a more definitive idea of what to do with adjoining acreage. Commissioner Underferth asked about the goal. Is it meant to address business moving into town, or existing businesses in town? · Commissioner Campagnoli said they are moving in and through. · Commissioner Kedrowski said they should take advantage of what is there. · Commissioner Underferth said they are going through town. · Commissioner Kedrowski said the goal is intended to be a broad statement. · Commissioner Underferth asked if we are asking to bring retail customers in? · Consultant Guenette said the goal is to attract development opportunities. · Commissioner Kedrowskisuggested that Commissioner Underferth is looking for a more direct focus. · Commissioner Underferth asked if the goal meant both or one. Traffic- Mdewakanton C:\MSOFFICE\WINWORD\EDA \EDA 72197. DOC 10 Commissioner Campagnoli said the nature of traffic has changed, from staying 2-3 hours to overnite. They need to go seek recreation on the lake or elsewhere to relax. We don't have a retail base for them to use. There are some good restaurants, but we are letting them go past. Commissioner Underferth said so it is for retail base. So along with redevelopment it has to be trying to attract patrons. President Barsness said asked what is the track we should be on? Executive Director Boyles said they are already seeing some redevelopment along 42. He said the City has a concept from the Wilds on the 55 acre commercial property. Commissioner Underferth asked whether there had been a study done on how to market it. Commissioner Kedrowski stated that a marketing study for land had been done for the completion of the 2010 Comprehensive plan. Executive Director Boyles said in conjunction with the Comprehensive Plan. Commissioner Underferth clarified that the CSAH 42 / 83 intersection is a natural for development, it is where everyone is. Getting people downtown, that is different issue. Commissioner Campagnoli said there are other ways for marketing such as State Dept. Tourism magazines, Mpls St. Paul Magazine. They need to be considered The meeting was adjourned at 7:00 p.m. Executive Dir Executive Secretary C:\MSOFFICE\WINWORD\EDA\EDA72197.DOC 11