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HomeMy WebLinkAboutMarch 22, 1999PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, March 22, 1999 5:00 p.m. Fire Station City Council Chambers Call to Order and Pledge of Allegiance. President Bob Barsness called to order a special meeting of the Prior Lake Economic Development Authority. Those present were President Barsness, Commissioners Kedrowski, Schenck, Underferth and Jader, Executive Director Boyles, Planning Director Rye, Planning Coordinator Kansier and Recording Secretary Carlson. 3. Approval of January 19, 1999 Minutes: MOTION BY SCHENCK, SECOND BY UNDERFERTH, TO APPROVE THE JANUARY 19, 1999 MEETING MINUTES. Vote taken all ayes. MOTION CARRIED. 4. Consent Agenda: Executive Director Boyles introduced and added the following item to the agenda: a) CONSIDER APPROVAL OF APPOINTMENT OF ASSISTANT TREASURER. MOTION BY KEDROWSKI, SECOND BY SCHENCK, TO APPOINT FINANCIAL DIRECTOR, RALPH TE$CHNER, AS ASSISTANT TREASURER TO THE ECONOMIC DEVELOPMENT AUTHORITY. Vote taken all ayes. MOTION CARRIED. 5. Presentations: None. 6. Public Hearings: None. 7. Old Business: a) Review and Finalize Notes from February 17, 1999 EDA Workshop Boyles gave a brief overview of the items from the Workshop discussions. The purpose of the item is to document the discussions took place. The items were prioritized and helpful to staff to use as a basis for future work efforts. 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 March 22, 1999 MOTION BY SCHENCK, SECOND BY KEDROWSKI, TO ADOPT NOTES FROM THE ECONOMIC DEVELOPMENT WORKSHOP FROM FEBRUARY 17, 1999. Barsness recommended using the notes to establish a time line for completion. Schenck pointed out the EDA and Planning Commission are planning a joint tour. Vote taken all ayes. MOTION CARRIED. b) Report on March 8, 1999 Redevelopment Study Kick-Off Meeting. Boyles gave a brief overview of the meeting. Comments from Commissioners: Barsness: Talked to presenters who were pleased with the turn out. The presentation will also be broadcasted several times on cable. Boyles: There will be a walk-around the downtown area April 13, (or 15th if rain) at noon with Mark Koegler. The purpose is to get a better sense of the area and talk to the business people and get to know one another. The second meeting will be a workshop to start the idea process, scheduled for Thursday, May 13, at the Prior Lake Senior High School Cafeteria at 7:00 p.m. The public is invited. 8. NEW BUSINESS: a) Consider Approval of Method for Preparing Deerfield Financial Data. Boyles presented the report. Staff favored the fourth alternative. Comments from the Commissioners: · Due to a conflict of interest, President Barsness abstained from discussions, comments and voting on any issues on this matter. Schenck: · It appears the EDA will come up with $15,000.00 in item #4. Agreed it provides a good catalyst to get something going. · Questioned if that would include the construction activity. Boyles responded a project would have to be ready to go and under way. Further define the matter. · Questioned Item #1 indicating the cost would be born solely by the developer. Boyles said that was correct. R:\COUNCIL\EDA\MINUTES\99\032299.DOC 2 Economic Development Authority Meeting Minutes March 22, t999 · Item #2 indicates the EDA pays the full fee. Would the EDA recapture their funds at a later date? Boyles responded it would depend if the project successfully went forward. Unless there is a project, the amount of funding could not be recaptured. · Rye said it would be true if they would be using TIF funds to reimburse. The EDA would also have the option of using their own funds. · Item #3 splits the cost assuming $7,500.00 would be EDA's contribution to get this development rolling. Underferth: · Certainly would like to get this development going. Not under the impression the EDA would be involved. Is the developer asking for help? Who is offering to reimburse the developer at all? Understanding our consultant would give advice. · Boyles responded this is in part of the response to the EDA's desire to assure a significant land inventory remains available for commercial industrial development. The developer has asked for assistance from an expertise perspective. Roger Guenette has met with the developer and tried to lay out the kind of information the City would need. The developer will need additional assistance. The developer also needs to do some work on his own. · Rye commented on his conversation with John Mesenbrink who said they were pulling together the cost and thought they were fairly close to accomplishing that. The greater issue is determining what kind of project and development would be out there and what kind of income it would produce. Would there be a financial gap to justify the use of tax increment? The additional assistance would be in doing an analysis of type of project, income and proceeds to determine what financial requirements are needed. Jader: · Likes fl4 with developer retaining his own consultant. It makes the most sense. · Change language in item fl4 from "EDA would reimburse" to "EDA could consider". · The developer has to come up with some kind of comprehensive plan for us to make any kind of decision. He has to that himself. · Or go with item #1 where the developer retains his own consultant. Kedrowski: · Questioned Rye on developer's time line. · Rye said he did not specify any time line to start the project, but would not want to put it on the back burner. He needs an understanding of what type of assistance he would need or get. Some financial projections can take over 5, 10, 15 years. If you are using TIF up front for development costs which are streets and utilities, that presupposes that over the life of the district that is going to pay enough money to pay off your bonds for constructing those improvements or have other guarantees in place. · What type of marketing would the EDA be expected to do? · Rye responded the City would provide assistance as far as people calling up or making up flyers. The City would not actively market property with Realtors. · Does not disagree with comments allowing the developer to find his own consultant. One consideration is the fact Roger Guenette is the City's consultant and understands our rules R:\COUNCIL\EDA\MINUTES\99\032299.DOC 3 Economic Development Authority Meeting Minutes March 22, f999 and regulations. It would cost the developer more money and time with another consultant not knowing how the City operates. That is just an observation. The second consideration is the City needs to get this project off the ground. We have very little commercial industrial land and can't sit back and wait for something to happen. As the EDA looks at this Deerfield project we could at least consider investments that could be recouped when we look at the tax increment or type of additional assistance. The developer will be in to ask for assistance. If this is one of the cogs in the wheel holding up the system, suggests that we consider making an investment to item #2 and then put addendums where the City would be looking for some reimbursement as this project goes on. If Deerfield does not do something with this project someone else will. Schenck: Is there any hope that an action taken tonight might move dirt this yea~ Rye said there is always a possibility, depending on a whole lot of things. Right now there is nothing on the table to look at. MOTION BY SCHENCK, SECOND BY UNDERFERTH, MOVE THE ECONOMIC DEVELOPMENT AUTHORITY COMMISSION ADVANCE RESOURCES TO CONDUCT THE NECESSARY ANALYSIS AND THE EDA PAY THEIR FEES AND THE DEVELOPER WOULD REIMBURSE THE EDA FOR THE COST OF THE ANALYSIS NO LATER THAN DECEMBER 31, 1999. DISCUSSION: Underferth: · Would like to get the project moving but if the only way to get it moving is to talk about splitting the cost and possibly recouping the fees, that's fine. But, has a problem offering up front something we're not asked to offer. · If the indication is Deerfield will not move without the EDA coming to the forefront and offering to the developer to split the cost, then I would like to hear that. If that is the case, I can support it. Does not want the EDA to offer money when they do not have to. · Boyles clarified the issue stating the City had some discussions with the developer and one of his major concerns is that he had to put an excess of One Million dollars in infrastructure in the project before he can start receiving dollar one in terms of revenue. The developer has to install the streets, sewer, storm sewer, pay the City fees, etc. That is his concern. He puts a Million plus dollars of equity in the project and has no assurance from the City of any kind of assistance. That goes right to the number issue. Staff is trying to move forward. We cannot conduct the analysis without the data. Roger would be available to developer with data. This is above and beyond what Roger would do. · With item #4, will the developer be able to retain Advance Resources? Boyles said "No" and explained the conflict. · Suggested incorporating "retain anyone except Advance Resources" in the Motion. R:\COUNClL\EDA\MINUTES\99\032299.DOC 4 Economic Development Authority Meeting Minutes March 22, ~999 Schenck: · Biggest concerns with item fl~t is that EDA will reimburse for cost analysis. Would rather advance a known amount to provide a catalyst to get something going out there and recapture our funds at a zero cost to the City at that point. · Second point, it allows carte blanch for the amount the EDA is to reimburse the developer. Does not like to advance unknown numbers. Put a cap on the amount or a percent cap on the amount. · Boyles said this is not intended to be a highly defined statement. Kedrowski withdrew his motion and stated the following: MOTION BY KEDROWSKI, SECOND BY UNDERFERTH, TO DIRECT THE DEVELOPER TO RETAIN HIS OWN CONSULTANT OTHER THAN THE CITY'S CONSULTANT IN THIS MATTER, ADVANCE RESOURCES, TO PREPARE AN ANALYSIS NOT TO EXCEED A DOLLAR AMOUNT TO BE DETERMINED ON FURTHER DISCUSSION. THE EDA WOULD REIMBURSE THE DEVELOPER FOR THE COST ANALYSIS, IF AND ONLY IF, THE PROJECT REACHES THE CONSTRUCTION STAGE. Kedrowski explained the Motion. MOTION AMENDED BY KEDROWSKI, THE REIMBURSEMENT BY THE EDA BE A NEGOTIATION POINT AT CONSTRUCTION STAGE WITH THE DEVELOPER. SECOND BY UNDERFERTH. AND MOTION TO DIRECT STAFF TO NEGOTIATE THE DEVELOPER AN AGREEMENT WHICH THE EDA WOULD CONSIDER REIMBURSING THE APPLICABLE COSTS IF THE PROJECT REACHES CONSTRUCTION STAGE. INCLUDED ARE THE FOLLOWING CONDITIONS: 1) NOT TO USE ADVANCE RESOURCES 2) COST FACTOR TO BE DEFINED, COMES WITH THE NEGOTIATION. Vote taken all ayes. MOTION CARRIED. b) Consider Approval of Signage on Various Roadways Identifying Routes to Prior Lake. Boyles presented the staff report describing four signage locations and costs. The question before the EDA as a matter of economic development, to pursue this expenditure? And if so, should the funding be set for this year or next? Comments from the Commissioners: R:\CO U N C I LIE DA\MI N UTES\99\032299. DOC 5 Economic Development Authority Meeting Minutes March 22, 1999 Kedrowski: · Supports the signs. · Why wouldn't we ask the City Council to do this? Boyles responded it could be either body. · City Council should do this and have it done right away. There should be funds available for this project. MOTION BY KEDROWSKI, SECOND BY UNDERFERTH, TO RECOMMEND APPROVAL AND REQUEST FUNDING FROM CITY COUNCIL. Schenck: · Question the cost on 135 to get the distance off the freeway. · Explained people get right off the freeway expecting to be in Prior Lake. Suggest adding the mileage to the signs. Boyles will check with MnDOT. Jader: · Agreed with Kedrowski. · Questioned if Prior Lake is locked in with those signage areas. Boyles explained some of MnDot's concerns with safety issues and financing a sign of that size. · Questioned the need for signage on County Roads 18 and 83. Boyles picked the most westerly routes believing it would direct the most traffic. Rye suggest "Prior Lake next two exists" on eastbound 169. Barsness: · Agreed with the Motion. It is about time. · City Council should agree. · Suggest to staff to finalize the locations, Somewhere along the line Prior Lake was left out. · Totally supports. Vote taken all ayes. 9. Other Business: a) Review and Discuss Draft City Council Strategic Plan and 1999 Staff Work Objectives. Boyles introduced the item. Comments from the Commissioners: Kedrowski: · Would like to add items such as the intersections at County Road 23 and Highway 13 and access points at Highway 13 and County Road 42 for implications for commercial and economic development in the community. R:\COUNClL\EDA\MINUTES\99\032299.DOC Economic Development Authority Meeting Minutes March 22, '1999 · Boyles gave the public meeting dates for the coming up issues. · Suggested adding to the next agenda. · Do we want to raise the issue of the annexation, from a staff perspective? Boyles responded a recommendation is going to the City Council and would be appropriate for the EDA to review and comment. The actual actor in this case would be the City Council. · Concern that we are technically an EDA, we also have the HRA powers. So there are implications for housing issues within the context of the discussion. Barsness: · City Council approved these work agenda items and have asked for a multi-residential housing downtown and that would seem to fall in our jurisdiction. Schenck: · To Kedrowski's credit he has been pushing HRA's funding. Shakopee and Savage are receiving massive funding for their downtown projects. If we have the power of the HRA, how does this interface with Scott County's HRA? Rye said there is nothing to say the Scott County HRA could co-exist with a local HRA. They have their own sources of funds and make them available according to what kind of project meets their goals. The City and EDA opted to use HRA powers and project. There is nothing to say you couldn't cooperate with the County authority in doing something. · Does the EDA or HRA have to go through a formal procedure of making the City Council the HRA? Boyles said the City already has. · Concerned Prior Lake is losing out on HRA funds. Barsness: · If this is not the time, maybe a good time would be with the downtown redevelopment. · Bill Jaffa seemed enthused to work with the City. · Suggested arranging a time on the agenda in the near future to hear from the Scott County HRA and bring the City up to speed. Underferth' · Commissioner Gene White certainly wants to promote Prior Lake. Barsness: · Suggested in the future we should incorporate EDA with City Council prior to them meeting with HRA. 10. Announcements: a) Megabit/High Speed Data Access Questions for Scott Rice and Triax. Boyles explained the Megabit committee and meeting the demands of providing high speed access lines to serve high technology companies who might want to develop in Prior Lake. Boyles stated the meeting dates regarding frontage roads and intersections. R:\COUNCIL\EDA\MINUTES\99\032299.DOC Economic Development Authority Meeting Minutes March 22, 1999 The next meeting will be Monday, April 19, 1999. 11. Adjournment: MOTION BY SCHENCK, SECOND BY KEDROWSKI TO ADJOURN. The meeting adjourned at 6:06 p.m. Recording Secretary R:\COUNCIL\EDA\MINUTES\99\032299.DOC 8