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HomeMy WebLinkAboutJanuary 19, 1999 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Tuesday, January 19, 1999 5:30 p.m. Fire Station City Council Chambers Call to Order and Pledge of Allegiance. Those present were President Barsness, Commissioners Kedrowski, Schenck, Underferth and Jader, City Attorney Pace, Planning Director Rye, Planning Coordinator Kansier, Project Coordinator Guenette, and Recording Secretary Meyer. ApPROVAL OF DECEMBER 21.1998 MINUTES: MOTION BY SCHENCK, SECOND BY JADER, TO APPROVE THE DECEMBER 21,1998 MEETING MINUTES. VOTE: Ayes by Kedrowski, Jader, Barsness, Underferth and Schenck, the motion carried. CONSENT AGENDA: None PRESENTATIONS: None. PUBLIC HEARINGS: None. OLD BUSINESS: Response from Northland Forest Products GUENETTE introduced the item and informed the Commissioners that a letter was sent to Dick Pyle regarding the pending Purchase Agreement. Mr. Pyle did not return the Purchase Agreement because he could not overcome his concerns regarding noise. His operation creates considerable noise which he feared would create complaints. He has entered into a Purchase Agreement for land in Shakopee. Mr. Pyle did comment that he was pleased with the ofter, but did not want to deal with complaints and noise issues. Status Report of Deerfield Development Proposal GUENETTE: Advised that he contacted John Messenbrink and met with him on January 19, 1999. Messenbrink advised he would like to be on the next agenda to present a proposal for the development of the Deerfield parcel. A 40,000 square foot building is his first initiative for the parcel. Messenbrink hopes to provide information to the City prior to that date, but also addressed with Guenette the issues of tax increment financing. Guenette advised that he also discussed with Messenbrink the issue of multi-tenant facilities. Advised Messenbrink the City mayor may not be willing to enter into TIF. There are some new issues with tax increment financing: (1) EDA TIF districts are subject to fiscal disparity contributions and one-third of the tax base would not be available for increment repayment; (2) administrative charge-ofts as high as 10%> are possible; (3) the City is obligated to make a 10% local contribution or risk losing LGA and HACA revenues. There are some options, but one way or another 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Economic Development Authority Meeting Minutes January 19, 1999 there has to be a real cash contribution by the City. Basically, Messenbrink is trying to determine what assistance he may need from the City, and whether the City will commit to it. GUENETTE advised Messenbrink that tax abatement or a pseudo-TIF may be alternatives to TIF financing. GUENETTE was encouraged because Messenbrink seemed earnest in wanting to proceed with development of the parcel. SCHENCK: Asked how much of Deerfield Messenbrink intends to develop and how many TIF districts he intends. GUENETTE: Advised that Mr. Messenbrink intends to develop the whole 60 acres. Stated that he told Messenbrink that what may work on the front-end in terms of a request for some level of assistance should not be construed as a standardized arrangement with tax increment or any other type of assistance. GUENETTE: Explained tax abatement financing versus TIF financing. Similar to a pay-as-you-go tax increment. The difference is that the City makes the decision for the City portion of the tax only. The benefit is that it is simpler than TIF financing from an administrative viewpoint. The disadvantage is the assistance is considerably less. UNDERFERTH: Asked if with tax abatement, does the figure involve a set dollar amount rather than an increment. GUENETTE: Clarified that it would involve a set dollar amount. BARSNESS: Asked if the criteria are the same with respect to tax abatement. GUENETTE: Similar. Report on Proforma for Downtown Apartment Project GUENETTE: advised that the Developer would like to give a presentation at the next EDA meeting. The Developer has advised him that at present the project drawings (a 105-unit high-density residential building on Dakota Street) have made the project financially unfeasible. They have sent the plans back to the architect for revisions to make the project more affordable and are also pursuing additional financial options. Believes that the Developer is anticipating a substantial amount of assistance from the City. KEDROWSKI: Asked if this can be part of the Lakefront Park development. GUENETTE: Advised the Developer that his project needs to be coordinated with several projects in the works (i.e. Downtown Redevelopment, Lakefront Park project, Library Construction) and advised the Developer that we are interested in the project, but he needs to move forward so we can coordinate the efforts from all projects. KEDROWSKI: Asked about the Developer's intention for parking. 1:\ADVBODYS\EDA\MINUTES\99\011999.DOC 2 Economic Development Authority Meeting Minutes January 19, 1999 GUENETTE: Stated that he assumes the Developer is pursuing underground parking because it minimizes the land needed and provides a desirable amenity. BARSNESS: Asked that any information the Commission can get prior to the presentation would be helpful. NEW BUSINESS: Review Draft Annual Report to City Council RYE presented the items by giving an overview of the EDA's report to the City Council. KEDROWSKI: Suggested the EDA advise that our focus is now on Downtown rather than Priordale Mall. It would indicate how much time we spent in evaluating our focus and what issues we did consider. Our goals should be reflected in the report. UNDERFERTH: Agrees with Commissioner Kedrowski. Suggested that the discussion in the report regarding the sale of parcels (referring to paragraph 1) should advise the public what benefits it provides the citizens. The EDA directed RYE to review the minutes of each meeting to double-check that the report reflects the issues discussed. Finalize EDA Workshop Agenda RYE: Reviewed the Workshop Agenda and asked for input as to other suggested topics. KEDROWSKI: Suggested adding a work plan/action plan for obtaining some of the goals on our list for 1999 achievements. SCHENCK: Suggested adding tax abatement and other financing tools to the topics of discussion. KEDROWSKI: Suggested making the meeting a little longer and asked that the City Council be formally invited. BARSNESS directed that the suggestions be added to the Workshop agenda and that Staff provide the Commission with as much information as possible prior to the Workshop. Discussion regarding schedules and who will be attending the Workshop. OTHER BUSINESS: Review 1998 EDA Goals and Objectives MOTION BY KEDROWSKI, SECOND BY SCHENCK, TO DEFER THE REVIEW OF 1998 EDA GOALS AND OBJECTIVES UNTIL AFTER THE ANNUAL WORKSHOP. VOTE: Ayes by Kedrowski, Jader, Barsness, Underferth and Schenck, the motion carried. 1:\ADVBODYS\EDA\MINUTES\99\011999.DOC 3 Economic Development Authority Meeting Minutes January 19, 1999 ANNOUNCEMENTS: GUENETTE: Advised that he his working on the separation of the semi-annual progress report for the NBC Products grant that was awarded to the City in the amount of $75,000 and the loan agreement documents will be signed and completed tomorrow. KEDROWSKI: Requested that the EDA get an update from the Scott County EDA, and advised that several traffic studies will be presented to the Council (particularly Cty Rd.42 & 13). Believes the EDA should be involved in reviewing and giving some sort of recommendation. MOTION BY KEDROWSKI, SECOND BY UNDERFERTH, TO REQUEST OF THE CITY COUNCIL THAT THE EDA BE ABLE TO REVIEW THE TRAFFIC PLAN RELATIVE TO THE FRONTAGE ROAD SYSTEM AT COUNTY ROAD 42 AND HIGHWAY 13. VOTE: Ayes by Barsness, Kedrowski, Jader, Underferth and Schenck, the motion carried. Upon a motion and second, the meeting adjourned at 6: 18 p.m. 1:\ADVBODYS\EDA\MINUTES\99\011999.DOC 4