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HomeMy WebLinkAboutAugust 18, 1997PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, August 18, 1997 5:30 p.m. Fire Station City Council Chambers . 2. 3. 4. . . . . o 10. 11. Call to Order Pledge of Alle~ance Approval of Minutes Consent Agenda Presentations a) Jim Stanton - Concept plan for neighborhood retail at CSAH 42 and 83. Public Hearings - None Old Business a) Approval of 1998 EDA budget for recommendation to City Council. New Business a) Discuss allocation of resources and action ~eps regarding down town redevelopment. - Don Rye (See attached Prior Lake Design Study and Library R.F.Q.) b) Report on financing options on EDA activities. - Roger Guenette Other Business a) Status of sale of property in the Waterfront Passage Business Park. b) 1997 Goals and Objectives review. Announcements or Correspondence Adjournment, 7:00 p.m. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER E~ MINUTES OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, August 18, 1997 o CALL TO ORDER: President Barsness called the meeting to order at 5:30 p.m. Present were: Commissioners Barsness, Kedrowski, and Underferth, City Manager Boyles, City Attorney Pace, Planning Director Rye, Planning Coordinator Kansier, Planner Tovar, Parks and Recreation Director Hokeness, and Consultant Guenette. Commissioners Campagnoli and Schenck were absent. , PLEDGE OF ALLEGIANCE: President Barsness led the Pledge of Allegiance and welcomed everyone to the meeting. 3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: MOTION BY UNDERFERTH SECOND BY KEDROWSKI TO APPROVE THE MINUTES OF THE JULY 21, 1997 ECONOMIC DEVELOPMENT AUTHORITY MEETING. Upon a vote, ayes by Barsness, Kedrowski, and Underferth, the motion carded. 4. CONSENT AGENDA: There were no items on the Consent Agenda. 5. PRESENTATIONS: This item was deferred. Commissioner Barsness said Bill Jaffa of the Scott County Housing Redevelopment Authority wants to make a presentation at the October 20th meeting. 6. PUBLIC HEARINGS: There were no Public Hearings. 7. OLD BUSINESS: a) Approval of 1998 EDA Budget for recommendation to the City Council. MOTION KEDROWSKI SECOND UNDERFERTH TO APPROVE THE 1998 BUDGET FOR THE EDA. Commissioner Underferth asked about the $10,000 for Advance Resources. He said in other material Advance is asking for $20,000. 16200 E~3~tli~gl~d~laSllB,~l~l~ior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 , City Manager Boyles said they discussed the issue. He said the dollar amount is an estimate of how many TIF packages were put together. He said Guenette's concern is they have historically had Waterfront Passage Business Park, and there are other areas coming up. They talked about the possibility of an increase in compensation if additional work is done. The budget as it stands can be adopted and still can meet Mr. Guenette's concerns. Consultant Guenette said if he does less work with TIF, there would then still be a funding source associated with various development. President Barsness called the question. Upon a vote, ayes by Barsness, Kedrowski, and Underferth, the motion carded. NEW BUSINESS: Discuss allocation of resources and action steps regarding downtown redevelopment-Don Rye (see attached Prior Lake Design Study and Library R.F. Q.). City Manager Boyles introduced the item. The EDA directed staff to look at downtown redevelopment. Planning Director Don Rye sent a memo to EDA regarding specific redevelopment issues. Planning Director Rye said the EDA at a previous meeting had asked Consultant Guenette to look at what was done in the past. They decided to make the Prior Lake Design study available. It is 12-13 years old, but many ideas seemed to Planning to be viable. It seemed that because of the interest of several different bodies, they should try to coordinate the efforts of all groups and try to get the most use of all of the resources. He said he outlined major duties and responsibilities of the groups involved. A steering committee involving two EDA members, a representative from Planning Commisson, one from Parks and Recreation, and two downtown business owners will be selected. He said then staff would provide assistance to these groups to develop a plan of attack. The question is whether the authority thinks this is a reasonable approach. There will be requests coming back in terms of finance, etc. Commissioner Underferth said a steering committee was a good idea. He asked if Planning Director Rye thought about the scope. Planning Director Rye said physically, the area to be included is Lakefront Park, Downtown and Priordale Mall. There is a necessity of connecting Priordale Mall to downtown. As far as activities it could encompass, the sky is limit at this point. Commissioner Kedrowski asked about a timeline. r:\council\eda\eda818.doc 2 Planning Director Rye said it will be quickly. He said a consultant is being selected for the library. This group will have to come up with something in the next three months. City Manager Boyles said it will close all the loose ends to present it to the Council. They would feel good about seeing the actions come forward. He said Task Forces have worked quite well. He said it could work the same here. Commissioner Kedrowski asked whether it would be the first meeting in September. Consultant Guenette asked whether the EDA has the ability to form a committee. They could just indicate to the City Council that the EDA made an appointment. Parks and Recreation Director Hokeness said as far as a time frame, they will be selecting an architectural firm on the tenth of September. They meet on September tenth. They will start in with conceptual design plans. To expand, they will have to move on that and Plan and Design will be in the winter. They plan for the Library to open in the Spring of 1998. City Manager Boyles said the EDA could ask Commissioner Kedrowski to address the issue under other business to the City Council at tonight's meeting. Commissioner Barsness said perhaps the committee needs leadership of someone from City Council. They want to avoid something that takes on a life of its own. Consultant Guenette said Parks and Recreation Director Hokeness has been given the responsibility of selecting an architect. He said Hokeness has been approached by downtown property owners about redevelopment. There are key property owners downtown who are interested in redevelopment. One thing they ought to be doing is authorizing appraisals. MOTION BY KEDROWSKI SECOND BY UNDERFERTH TO RECOMMEND FORMATION OF A STEERING COMMITTEE CONSISTING OF 1 PLANNING COMMISSIONER, 2 EDA COMMISSIONERS, 1 PARKS ADVISORY COMMISSIONER, 1 FRIENDS OF THE LIBRARY MEMBER, AND 2 DOWNTOWN BUSINESS OWNERS. Upon a vote, ayes by Barsness, Kedrowski, Underferth, the motion carded. Commissioner Barsness asked about a street -scape plan. Planning Director Rye said they found large rendering architectural drawings of downtown. r:\council~eda\eda818.doc 3 Commissioner Barsness said it had been less than ten years at the time and the City had decided not to proceed because less than 50% of private property owners were interested. Commissioner Kedrowski said another question is that section of road, Main Street, and whether it is going to turn back to the City. · Planning Director Rye said he would guess that the County would like to do that. Councilmember Kedrowski the estimate had been $75 per foot with lighting, brick pavers, trees, etc. A number of property owners said it was not worth it to the businesses. · Consultant Guenette said it would be easy to update. · Commissioner Kedrowski said the phone company was an advocate. · Commissioner Barsness asked for copy of the staff report from the issue. City Manager Boyles said City Council direction to staff was to investigate tumbacks. He said based upon conversation with City Engineer Ilkka he is getting together with the County within the next 30 days. Consultant Guenette said he would like to have the permission of the EDA to get together with people to talk with property owners and seek appraisal. He wants to let them know that the EDA will get back to them in the near future. City Manager Boyles said there will be two members of the downtown on the steering committee. · Commissioner Kedrowski said the phone company will be interested. b) Report on financing options on EDA activities -Roger Guenette. Consultant Guenette addressed a memo on financing options. $429,000 on land proceeds was raised. The proceeds were used to pay for Waterfront Passage, and the title was transferred to Waterfront Passage. The money will come to the EDA. It is not presently in an account. The EDA has used it to pay off bonds. TIF did not start to come in until 1995 or 1996. The amount of increment flowing in is $90,000 per year. There are two more parcels to sell. The City has used land sales to finance bonds. City will replenish EDA with land sale proceeds. · Commissioner Barsness clarified that the City must pay over a million. r:\council\eda\eda818.doc 4 Consultant Guenette said the City has used money to pay debt until TIF is substantial. The EDA will pay off the rest of the debt. TIF goes to the City not EDA. Commissioner Barsness asked about excess increment. Consultant Guenette said the bonds are repaying the trunk fund. The City will be made whole, and will show a profit on land sale. It will do better than projected in the pro-forma. They will repay all the City's cost and have $6,000-$7,000 excess to EDA. Commissioner Barsness thought the EDA would have funds available. Consultant Guenette said the EDA will receive sale proceeds, not increments. Commissioner Kedrowski asked about the options. Consultant Guenette asked about leverage debt based on income stream. Commissioner Kedrowski said they could capture initial land and it could be used immediately for redevelopment. Consultant Guenette said the estimated cost to bring utilities out there would be in excess of $600,000. Another thing is the City has excess revenue. Commissioner Underferth asked if additional money that the City will have will have restrictions. Consultant Guenette said yes. Commissioner Underferth said would it be easier to use the money if used in that area. Consultant Guenette said it would have same set of restrictions. Commissioner Kedrowski said do we want to direct staff to prepare long term options for the money? He said there should be more than one option. Commissioner Barsness said what is the criteria for? He said they will try to look at some issues to base a policy decision on. Consultant Guenette said he will try to provide information. r:\council\eda\eda818.doc 5 Commissioner Kedrowski said he felt better having EDA look at the options. He said the areas they are considering should be outlined so they can put the area on the map. Consultant Guenette asked about the enabling resolution and strategy for continued generation of revenues. · Commissioner Kedrowski said what kind of motion are you looking for. Commissioner Underferth said could the TIF district be expanded to utilize 100% of the increment? o Consultant Guenette said they could be expanded or create new TIF. City Attorney Pace said they could expand but creating new districts would not get around the 20%. OTHER BUSINESS: a) Status of Sale of Property in the Waterfront Passage Business Park. Consultant Guenette spoke with NBC Products Tony Shanks. He is considering listing his property and moving to another location. Guenette spoke with him about the one acre lot. Guenette will speak with him next week. Guenette said Mr. Anderson said he did not want the option on the 4.3 acre parcel. The City offered a right of first refusal. Dave Hansen wants an exclusive option until January 1 st with no charge. Guenette indicated to Mr. Hansen that they were working with another tenant. The EDA was not interested in granting an option without compensation. B) Goals and Objectives review. Commissioner Kedrowski asked about # 1, and asked if the EDA was waiting for developer? City Manager Boyles said the next step will be from Planning Department. Consultant Guenette said he heard from Bodermans that they will be partners in the redevelopment of the Priordale Mall, which is a complete shift from the earlier position. Councilmember Kedrowski said they did not address ring road. He wondered whether that could be addressed. r:\council\eda\eda818.doc 6 10. Planning Director Rye said up to this point it did not impinge on the property. There may be a right of way required. City Manager Boyles said they were waiting for additional materials from Gabrielson. Commissioner Barsness asked about//6. City Manager Boyles said they had not worked on it yet. Planning Director Rye said one possible step the City could take was to designate a ring road on an official map.This designates the City's interest, and gives time to possibly acquire fight of way. It requires a survey of the center line; then it could be depicted on an official map. This allows certain rights to remain with the City. City Attorney Pace said they could then adopt an official map. MOTION BY UNDERFERTH SECOND BY KEDROWSKI TO RECOMMEND TO THE CITY COUNCIL THAT IT ADOPT AN OFFICIAL MAP THAT INCLUDES THE RING ROAD. Upon a vote, ayes by Barsness, Kedrowski, Underferth, and Mader, the motion carded. OTHER BUSINESS' City Manager Boyles mentioned the Fall Fest. There are five tables representative of different areas from the City. The EDA has a table 6:30 - 8:30. It was agreed that Dick Underferth would man the table. 11. ADJOURNMENT: The meeting adjourned at 7:00 by General Consent. City Manager Executive Secretary r:\council\eda\eda818.doc