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HomeMy WebLinkAboutMarch 16, 1998 ORDER: Present were: President Bob Barsness, Commissioners Gresser, Kedrowski, E ~ and Schenck, Executive Director goyles, City Attorney Pace, Assistant Executive Director Planning Director Rye, Planning Coordinator Kansier, Recording Secretary Oden. 2. PLEDGE OF ALLEGIANCE: 3. APPROVAL OF PREVIOUS MEETING MINUTES: Minutes of the February 17, 1998 meeting. MOTION BY SCHENCK SECOND BY UNDERFERTH TO APPROVE TO THE MINUTES OF THE FEBRUARY 17 EDA MEETING. · City Attorney Pace should be shown as present. · Planning Dh'ector Rye noted that on page five, "STA" should read "SBA" programs. Upon a vote, ayes by Barsness, Gresser, Kedrowski, Underferth, and Schenck, the motion carded. 4. CONSENT AGENDA: There were no items on the Consent Agenda. 5. PRESENTATIONS: A) There were no Presentations. 6. PUBLIC H-EARINGS: A) There were no Public Hearings 7. OLD BUSINESS: A) Election of Officers: · Executive Director Boyles introduced the item. The Bylaws provide for election of officers annually by majority vote. Currently serving are Bob Barsness as President, Dick Underferth as Vice President and Executive Director Frank Boyles as secretary. MOTION BY SCHENCK SECOND BY UNDERFERTH TO NOMINATE BOB BARSNESS AS PRESIDENT OF THE EDA. Upon a vote, ayes by Gresser, Kedrowski, Schenck, and Underferth, abstention Barsness, the motion carried. MOTION BY SCHENCK SECOND BY KEDROWSKI TO NOMINATE DICK IJNDERFERTH AS EDA VICE PRESIDENT. Upon a vote, ayes by Barsness, Gresser, Kedrowski, and Schenck, abstention Underferth, the motion carried. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY mPLOYER MOTION BY SCHENCK SECOND BY GI~ESSER TO NOMINATE TH~ R.ECO~ING SECI~ETARY AS SECRETARY. Upon a vote, ayea by Bavaness, Gresser, Kedrowski, Schenck, and Underferth, the motion carried. MOTION BY SCHENCK SECOND BY UNDERFERTH TO NOMINATE MIKE GRESSER AS EDA TREASURER. Upon a vote, ayes by Barsness, Gresser, Kedrowski, Schenck, and Underferth, the motion carried. B) Discussion of March 2 City Council Work Session. Executive Director Boyles introduced the item. There was a discussion regarding the downtown redevelopment Task Force. Commissioner Underferth gave the report. Commissioner Underferth said he presented an outline to the Council on where the redevelopment task force was. In 60-90 days, the task force will have recommendations for downtown redevelopment. He responded to Council questions. President Barsness asked whether the library location was resolved. Executive Director Boyles said yes it was by 4-1 vote. Commissioner Schenck said also the moratorium was extended. President Barsness asked about a new meeting date for the Downtown Redevelopment Task Force. Executive Director Boyles said the committee is waiting for materials from the architect. 8. NEW BUSINESS: A) Outline of Tax Increment Financing Policy Presentation at April 6 City Council Work Session. Executive Director Boyles introduced the item. Consultant Roger Guenette in a memorandum addressed issues impacting Economic development potential in Prior Lake. This memorandum will be presented to the Council at their workshop on April 6, 1998. Consultant Guenette said at one recent EDA meeting, commissioners and staff relayed some comments from the Council workshop. Some related to the focus on Economic development, and statements regarding a desire to see larger industrial users and manufacturers, TIF programs that could be used to assist or promote those strategies. It sounds like an appealing strategy. He reviewed the history of Economic Development. In 1990 he worked with City on implementation of strategies. He presented a map which shows the five areas that were identified as commercial/industrial development potential. Of the five areas, only two had the ability to be se~ed by municipal sewer and water. That is because of MUSA limitations. The one area, area 4, was a likely location of expansion. But, the majority of land holdings are owned by a family that does not want to market it for anything other than agricultural use. He said there would probably be no drastic changes in the City's future business development. In the event that the City wants to change objectives to lure Fortune 500 firms, there are four steps necessary. The City or a private party must assemble 100 plus acres. It needs to be divided into 10-20 acre parcels with full utilities. Otherwise, there is really no benefit in marketing to large scale users. If a site is available, large scale users are _unlikely to come to this location unless there are very strong incentives, in addition to TIF. Typically one of the base requirements is a four lane highway with a direct connection to the interstate. Valley Green, Shakopee and Savage is an example. The fourth thing is the City of Prior Lake must have business support services. In the absence of these conditions it is unlikely Prior Lake will attract large scale users. He would recommend continuing to work with small to medium size companies and negotiate with them about using TIF on a case by case basis. Another issue is the return the City and taxpayer receive for use of Tax Increment Financing. Roger Guentte prepared a TIF cash flow pro-forma reflecting the absence of Roberts Foods. The return on investment over 15 years projects out as a positive $475,500 above expenses. It will be more after the last 4-41/2 acre parcel is sold. It has been four years since the City started the TIF district. It is discounted by 7% over 15 years. That is $158,000 of present value. That is approximately a 9% return on investment. The actual return is higher because the City's cash investment was $475,000 not $1.8 million, most of which was bonding for public improvements. There are other benefits as well. There is a $3.8 million payroll. The City's share of the tax revenue after TIF is roughly $69,000 per year. They would not have built without TIF. Without offering an incentive, it would be very difficult to market the property. The actual cash and job creation, tax base enhancement, and other tangible benefits are more. Executive Director Boyles said the purpose of this report was an attempt to create an even base of knowledge between EDA commissioners. He asked if the EDA thought it appropriate to do this with Councilmembers as well, perhaps at the April 6 work session. Commissioner Underferth said it is very appropriate. The point needs to be made. The City needs to make a decision. Consultant Guenette said it would be a mistake if the Council and EDA were at cross-purposes. Commissioner Kedrowski said it was good for the public to see. The EDA can expand on this and show where growth and opportunity exist in the City. Prior Lake doesn't have transportation, access, and labor pool. Valley Green is ten minutes north and on TH 13 Savage is opening a business park. Prior Lake needs to sell a package. Consultant Guenette said he has done as well as he can with available resources. · Commissioner Kedrowski said he recognizes the constraints. ., · President Barsness said many of the new Prior Lake businesses are owned locally. The EDA once tried to get a Fortune 500 company with KATUN, but it did not work. · City Attorney Pace said in the package of materials, a flow chart was prepared regarding the TIF process. · Consultant Guenette said that would be included together with the policy. President Barsness asked whether the TIF policy been seen by the City Council. Commissioner Schenck said not yet. Executive Director Boyles said the policy and Roger's presentation would be the base for the April 6 meeting. Tonight Wensmann Homes will be present. They want to develop their Pike Lake TrailICSAH 42 property as towrthomes. That is the market. The Council will be asked to reexamine issue and make a determination. · Executive Director Boyles went through a staff report which lists City Council questions about TIF usage. For example, should the City continue to market to new h/gher risk companies? · Councilmember Kedrowski said they still capture the dollar, and the City does not lose any thing. · Consultant Guenette said even in the case of Becker, the increment is guaranteed and the building available for usage. · President Barsness said does the EDA want to encourage short term businesses? · Executive Director Boyles said the point was Fortune 500 companies have longer term staying power. · Commissioner Gresser said whoever takes possession of the building will pay the property taxes. · President Barsness said there could be a priority lien on property. · Commissioner Kedrowski said the risk and exposure were spread out. · Commissioner Gresser said they would analyze prospective users, then fulfill the goal of developing the property. · Consultant Guenette said they have not done a project without a financial analysis of the company. · Commissioner Kedrowski said the analysis needs to be included in the policy. · President Barsness said much of it is. · Executive Director Boyles said the policy would be modified and a staff report prepared for the Council work session. · Commissioner Gresser asked if it would be directed toward big vs. little business. · President Barsness said the staff report would separate the two. · Commissioner Underferth said the policy must be flexible to allow for a case by case analysis. · Planning Director Rye said he thought the idea was to see if they wanted to discuss this April 6th. · Commissioner Kedrowski said the EDA has to ask what it is trying to accomplish with this. · . Planning Director Rye said so the TIF policy as it is here is what should be provided to the Council. · Commissioner Kedrowski said along with the analysis and staff report. · Executive Director Boyles said he would prefer to do it as a staff report, with a question answer format, adding Consultant Guenette's memo. 9. OTHER BUSINESS: A) Review 1998 Goals and Objectives. · President Barsness said they are not doing objective number one. · Executive Director Boyles said it was on the basis that Priordale was going to redevelop without public assismuce. · President Bar~ness asked should they remove it ~rom the ~oal list, since they are not $oin~ to prepare a redevelopment plan ~i~ht now.9 · Commissioner Kedrowski said it is not at the top of the list. There are three other areas that are more viable. It does need to be addressed. · Consultant Guenette said several developers were interested. All link a grocery store to their efforts. Prior Lake communicated it was not interested in developing a grocery store on that site. The developers went away. There are other areas that redevelopment should be concentrated on. · Commissioner Schenck said they can't forget about it. · Commissioner Gresser suggested moving this objective to the bottorm · President Barsness said the TIF policy, number 2, has been completed. The business park is ongoing. · Commissioner Kedrowski asked about 60-70 acres of the Mesenbrink development. · Consultant Guenette said that is one of the areas. The City is waiting to see if Mesenbrink is going to follow through. · Commissioner Kedrowski asked for an update. · Executive Director Boyles said a complete application for MUSA extension was submitted and final Metropolitan Council action is expected April 9. · Commissioner Kedrowski said that authorizes the extension of MUSA. · Planning Director Rye said yes, assuming it is approved. · Executive Director Boyles said they have submitted prelinainary materials to extend the sewer and water by the City. He is not sure ff all supporting materials are in. The action has to be consistent with the Comp Plan, Plat Process, and Public Improvement process. · Councilmember Kedrowski asked if it was part of the CIP. · Executive Director Boyles said for 1999. He said Mesenbrink needs to get his materials in completely before the City proceeds. · President Barsness said they know rules and are not complying. · Executive Director Boyles said he referred Mesenbrink to Assistant Engineer Sue McDermott. · Planning Director Rye said Mesenbrink still has option to extend public utilities himself after the platting process. He outlined the steps he needs to accomplish. He said the 60 day Met Council deadline is April 13th. · Executive Director Boyles said he can be more specific under 3. They need to secure a Comp Plan amendment from Met Council. 10. President Barsness said he met with the Downtown Redevelopment Committee and they are moving forward with that objective. The objective to capitalize on Mdewakanton traffic has not been done. Commissioner Kedrowski asked if there will be development this year at the Wilds on 42/83? Planning Director Rye said that is unknown. They haven't had much indication of movement. Commissioner Kedrowski asked when is the CSAH 42 projected to be done? City Engineer Ilkka said in late fall it should be to McKenna. Commissioner Kedrowski said there is a lot of traffic on CSAH 42 and the City should take advantage of the traffic flow. Consultant Guenette said to the extent it is a TIF policy that everyone agrees with, the City could put up signs about development potential. Another idea, assuming there are industrial sites to market, is having a CEO golf tournament using the Wilds as a lure. If the EDA, City, and Chamber, wanted to sponsor it, the City could set up to sell sites. Commissioner Kedrowski said that would be a good idea. Consultant Guenette said they need to be prepared in having industrial parks ready and to know marketing. Commissioner Kedrowski said put it on the list. The EDA has been looking for a hook. President Barsness said number six, inventory and review. There was a presentation to the Realtors. That should be formalized. Commissioner Kedrowski asked about the use of the $400,000 generated by the business park development. Consultant Guenette said there are numerous options to consider. He needs the City Engineer to generate an estimate to mn utilities to the Credit River Business Park. It would require borings, and a cost incurred to make an assessment on that. He doesn't know the price on downtown redevelopment, but it is more than $400,000. With Mesenbrink opening 60 acres, the City may want to hold it back until they know the downtown budget, and decide if they want to spend time and money investigating it. Executive Director Boyles said he agreed with Consultant Guenette and would rather give a serious effort with a focus on one to three objectives. President Barsness asked why would the EDA prepare a plan of any kind for Priordale Mall? Commissioner Schenck said the EDA doesn't want to give the impression it is not interested. Planning Director Rye said there is the Comprehensive Plan Zoning issue. ANNOUNCEMENTS OR CORRESPONDENCE: A) Update on Franklin Trail North and South Executive Director Boyles said he talked with MnDOT. The staff is reviewing a proposal to resolve the impasse on the Franklin Trail north and south intersections. The concern about Franklin North by Lakers is the protected North to Westbound Lakers turn and, whether it can be done and at what cost. Franklin Trail south could be resolved by assuring that Anna Trail stays open and that intersection restrictions are not imposed until the Ring Road is constructed. Commissioner Schenck asked if there is a possible resolution from northbound to west into Lakers. If Lakers would agree to shffi the entrance further to the south it might work. This option could be discussed with MnDOT. B) Discussions with C.H. Carpenter C.H. Carpenter representatives have not been reached regarding possible relocation to the Business Park. Consultant Guenette said a lumber yard would not conform to design and covenants in Waterfront Passage. The quality of facihty and outside storage are considerations. C) Other President Barsness asked if the next meeting was April 20th. Consultant Guenette said he had an announcement. He said he just sent out final versions of development contracts for NBC and Horkey. The GEO technical study will be reviewed to verify the cost of soil correction. To the extent there are extraordinary costs for soil correction, the purchase price should be adjusted. The proposed cash sale price is $96,000 with soil corrections of up to $40,000+. The City Engineer is verifying this. Executive Director Boyles said this is advance notice and Consultant Guenette is not asking for EDA action on the issue. 11. ADJOURNMENT: MOTION BY KEDROWSKI SECOND BY SCHENCK TO ADJOURN TI~ MEETING. Upon a vote, ayes by Barsness, Gresser, Kedrowski, Schenck, and Underferth, the motion carried. The meeting adjourned at 7:00 p.m. Exec~or Recording Secretary