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HomeMy WebLinkAboutApril 20, 1998. . PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Monday, April20' 1998, 5:30 p,m. Fire Station City Council Chambers Call to Order: The meeting was called to order at 5:30 p.m. Present were: President Barsness, Commissioners Gresser, Kedrowski, and Schenck, Executive Director Boyles, City.Attorney Pace, Assistant Executive Director Woodson, Planning. Director Rye, Planning Coordinator Kansier, Planner Tovar, Consultant Guenette, Recording Secretary Oden. Pledge of Allegiance: President Barsness led the Pledge of Allegiance and welcomed everyone to the meeting. -. Approval of Minutes: · MOTION BY SCHENCK SECOND BY GRESSER TO APPROVE THE MINUTES OF THE MARCH 16 ECONOMIC DEVELOPMENT MEETING. Upon a vote, ayes by Barsness, Gresser, and Schenck, the motion carded. 4. Consent Agenda: A. There were no items on the Consent Agenda. 5. Presentations A. John Mesenbrink- Concept for Deerfield Business Park: Bryce Huemoeller, representing Deerfield Development outlined the objective of Deerfield for this year for commercial property. It is a 58 acre parcel at the intersection of Eagle Creek Boulevard and Revere Way. The Metropolitan Council has approved the Comprehensive Plan amendment designating the westerly portion of the parcel as medium density residential, and the easterly portion as business park. Deerfield wishes to move forward. It intends to nm a street through the north line from Cottonwood Lane and Adelmann through the property to Revere Way, creating two outlots which would be subdivided by the buyers to create custom parcels. The needed public improvements: streets, and sewer and water utilities cost is a concern. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER April 20, 1998 EDA Minutes .0 Deerfield will do the internal public improvements if the City will extend the Adelmann Street, Sewer, Water, and Storm Sewer to the north property line of the Deerfield property. If the City will extend utilities to that point, Deerfield will move forward. During the time annexation was under consideration, the developer and City talked about using TIF to make the property more affordable. Available incentives will need to be clarified. 'Planning Director Rye said the procesSTor development of the business park involves a preliminary and final plat, which has not been applied for yet. That process would have to be undertaken, andtakes typically a minimum of 60 days. Utilities don't go any further than the south fight of way line. The utilities would need to be extended about 300 feet to get to the north property line. Executive Director Boyles said it would cost about $76,000. It is a question of policy whether the Council desires to extend utilities to serve the subdivision. President Barsness asked about how the decision would be made. Planning Director Rye said it was not part of Deerfield Property. The City owns it, and it would not be a special assessment process Executive Director Boyles said staff could articulate the options available and the Council would determine which is most appropriate. Mr. Huemoeller asked what does the City want Deerfield to do? Wait for staff and Council to move forward, or set up meetings to discuss costs and plans, or file a formal subdivision application for 58 acres. There is a lot of expense in setting up a formal subdivision plan. Executive Director Boyles said he cannot answer for Deerfield but if time is of the essence then the deVeloper should complete the preliminary plat petition and submit it to the City. Mr. Huemoeller's perception is that they will need TIF. Executive Director Boyles said tonight City Council will review the TIF policy for approval. It is a project-based policy. It will be evaluated on a request by request basis. Mr. Huemoeller said the argument in favor of utility extension is that the subdivision ordinance requires extension of utilities to plat boundaries. City Attorney Pace asked isn't it the property owner that pays for it? A:~EDA42098.DOC 2 April 20, 1998 EDA Minutes Executive Director Boyles said yes and that the City is the property owner of Waterfront Passage Business Park. President Barsness asked if the annexation issue is now completed? · Mr. Huemoeller said yes, but there is also an appeal contesting the validity of the annexation. It will probably be resolved in the next 90 days. · Commissioner Schenck asked if the developer and/or City can move forward until the appeal? City Attorney Pace said yes. Mr. Huemoeller said the annexation is valid and complete as it stands. City Attorney Pace said the hearing was on incorporation. The annexation was done under the Orderly Annexation agreement, through statutory requirements. The incorporation petition was a way to throw a cloud over the annexation proceedings. .President Barsness ,said the. intent of annexing was so it could be developed; so that private entrepreneurs could proceed. They need sewer and water and the City is the only one that can do it. Executive Director Boyles said it is difficult to say what Deerfield should do. The TIF issue will be addressed on each project. With regard to platting, Deerfield controls whether to move forward. The extension of street and utilities is an issue to be placed before the Council. Mr. Huemoeller said Deerfield is asking the EDA to support the utility extension as a formal request. Consultant Guenette said there has been a lot of information. He would concur with Barsness. The annexation was encouraged by the City to provide additional opportunities for private parties to go forward with additional commercial/industrial development. Deerfield does not want to go to the expense unless they can go forward. It becomes a City issue. One thing that could be done is to incorporate the utility extension costs as elibible Tax Increment Financing costs so that would reimburse the City for utility extension. The Council needs to make a decision on whether they will extend utilities before the developer goes ahead with platting. Commissioner Schenck said with the development of the Business Park, was there the intention of extending Adelmann? A:~EDA42098.DOC 3 April 20, 1998 EDA Minutes Consultant Guenette said there was informal discussions in anticipation that it would be logical to extend Adelmann and continue south. Commissioner Schenck asked where will the $76,000 come from ? Executive Director Boyles said they would look into that from a staff perspective and report back. Commissioner Schenck asked about the MUSA extension. Executive Director Boyles said it was approved by the Metropolitan Council on April 9. Commissioner Kedrowski arrived at 5:55. Commissioner Gresser said assuming this is vital to the development of the 58 acres, how much developable commercial industrial property exists without extending the MUSA? Planning Director Rye said there is the-4 acre business park parcel, and 40 acres, at Pike Lake Trail and CSAH 42, 25 of which is buildable. There is also the Vierling parcels which are not likely to develop immediately. Executive Director Boyles said Wensmann has informally asked the City to rezone to R-2 or R-3 rather than keep as business. Planning Director Rye said' development opportunities are limited. MOTION BY GRESSER SECOND BY SCHENCK TO APPROVE EXTENSION OF SANITARY AND STORM SEWER AND WATER AND ADELMANN STREET TO THE NORTHERN PROPERTY LINE OF WATERFRONT PASSAGE AT THE CITY'S COST. Upon'a vote, ayes by Barsness, Gresser, Kedrowski, and Schenck, the motion carried. Jim Sherat of Marquette Bank handed out brochures for the Downtown Prior Lake business loan program for distribution. The City will mail to Prior Lake business owners. President Barsness proposed that these materials not be sent until the Redevelopment Task Force Report is adopted. 6. Public Hearings: A. There were no Public Hearings. A:XEDA42098.DOC 4 April 20, 1998 EDA Minutes 7. Old Business ge A. Discuss City Council Response to Return On Investment Memo and Tax Increment Financing Policy. Consultant Guenette said both topics were discussed at a Council work session. He thought there was an understanding by the Council of the TIF policy. The · ' Councilmembers present indicated they were supportive of the TIF policy and the use of TIF in this manner. They want to remain informed from an economic perspective. President Barsness asked is there a request for a presentation tonight regarding the TIF policy? Executive Director Boyles said it is under new business. Staff is available to answer questions. There will be an overview of the policy and memorandum. A formal presentation is probably unnecessary since it was discussed at length at the workShop. President Barsness stated he would make himself available to respond to Council questions. New Business A. NBC Products Executive Director Boyles said there is a soil concern with the expansion of NBC products on 1.1 acres. The proposed payment is $50,506 based upon $1 per square foot. The presumption is that the property is developable. There is a substantial amount of soil correction necessary. Consultant Guenette said Shanks had geotechnical borings done on the site. Based upon the result, Mr. Shanks said there were soil correction issues. He received a bid for soil correction at $40,000 and one at $20,000. The reason for the discrepancy is the lower bid contractor is doing a lot of now on CSAH 21 and has equipment and crews available. When this property was acquired, there was a lot of earthwork. The City was giving the impression it was selling lots that were development ready. Tony Shanks said the soil correction is an additional $40,000 beyond his budget and he would like some relief considered. He would like to know if the EDA would consider some adjustment on the negotiated purchase price. He is requesting half the cost to to assist on soil corrections. City Engineer Ilkka said the $40,000 soil correction figure has been verified as accurate. President Barsness asked whether the cost estimate was strictly for soil corrections? A:~EDA42098.DOC 5 April 20, 1998 EDA Minutes · Consultant Guenette said yes, there are studies to support it. There was grading done on the site when the City purchased it. There was no soil correction. · Commissioner Kedrowski said he thought soil correction was being done on a per- site as needed basis. · Commissioner Schenck asked who would pay for it. .... · Consultant Guenette said the City would reduce the purchase price, then when Shanks presented invoices, the costs would come out of the EDA budget. ...·.. Commissioner Schenck asked about reducing property price versus reimbursement. · Consultant Guenette said it was the same effect. · Commissioner Schenck said so ideally it could be sharing a percentage of soil correction with a not-to-exceed figure. Executive Director Boyles said the development agreement has not been signed. If the EDA approves the agreement then it would go to the Council. He said they may need to conduct a special meeting of the EDA. MOTION BY KEDROWSKI SECOND BY GRESSER TO APPROVE SOILS CORRECTION REIMBURSEMENT OF UP TO 75% NOT TO EXCEED $15,000 AS A REBATE TO SHANKS FOR SOIL CORRECTIONS. · Consultant Guenette said $15,000 or 75% whichever is less. City Engineer Ilkka said his calculations indicate that $40,000 is a legitimate bid. · commissioner Kedrowski suggested amending the motion to up to 60 % or $15,000 whichever is less. MOTION BY KEDROWSKI SECOND BY GRESSER TO AMEND THE MOTION TO UP TO 60% OR $15,000 WHICHEVER IS LESS, SUBJECT TO REVIEW AND APPROVAL BY THE CITY ENGINEER OF THE INVOICES. Upon a vote, ayes by Barsness, Gresser, Kedrowski, and Schenck, the motion carded. Consultant Guenette said he doesn't want the deal jeopardized. They are ready to move forward. This is reasonable and fair as to what has been represented. It is consistent with what has been done with other developers. Upon a vote, ayes by Gresser, Kedrowski, Schenck, and Underferth, the motion carded. A:~EDA42098.DOC 6 April 20, 1998 EDA Minutes · Commissioner Kedrowski asked is there something that can be done to sell the four acre parcel? · Consultant Guenette said he would make a better effort to get the word out. There are mailing lists that have been used previously. When Deerfield opens, it will be difficult to sell the parcel. The City can make it more attractive. There is a holding pond extending into the property. Mitigatiori:is a necessity. At $1 'to $1.25 per square foot, it is roughly $200,000. :. ~ · President Barsness asked wasn't it sold and the buyer backed out? · Consultant Guenette said Roberts Foods backed out because of change in growth plans. The broker who wanted to do it as a speculation project was paired with AmCon, but thought City was not interested in providing TIF for a multi-tenant retail facility. · Commissioner Kedrowski said since it is City property, the City needs to be receptive to offers. · Consultant Guenette said it only takes one transaction. Developers are contacting him from other jurisdictions. The best way to market it is through word of mouth. Driving by, it looks like the business park is filled. · Commissioner Kedrowski asked what about lumber yards? Consultant Guenette said they would not want to build to the City's zoning requirements. Commercial Realty called about building a showroom. They wanted to build a metal building and would not be eligible for TIF. · President Barsness said they could go with a sign advertising one lot remaining. · Commissioner Kedrowski said direct mail is a possibility. · Consultant Guenette said the business park flyers are outdated. At least the EDA could draft a new letter. · Planning Director Rye said they are working on that, with the South of the River Realtors Association. · Commissioner Kedrowski said they could send it to all chamber members as well. · Consultant Guenette said they will draft it and it will go out on City letterhead. AP~EDA42098.DOC 7 ~4pri120, 1998 EDA Minutes · President Barsness said they could get it to Chamber to go out in their mailing. · Commissioner Kedrowski asked about the cost for a sign. · Consultant Guenette said $500 for a basic sign. Commissioner Schenck said they could have names of business located there, showing the available land, and keep thee sign up. Executive Director Boyles said two entry monuments will be installed this spring. A second sign is planned which not yet been designed, saying the "following businesses can be found here". · Commissioner Schenck said it was a step toward business retention. · ConSultant Guenette said there should be something different for business retention. · Commissioner Kedrowski mentioned.renting billboard space. · Consultant Guenette will call Valley Sign. 9. Other Business: A. Review 1998 EDA Goals and Objectives · Executive Director Boyles said the Goals and Objectives have not been revised. Four is ongoing. Timeline for completion of downtown redevelopment report: Planning Director Rye said the group is working with NSP for decorative lighting cost estimates. President Barsness said they want something to present to the City Council. · Commissioner Kedrowski said perhaps the second meeting in June? · Planning Director Rye said May. · President Barsness said the downtown group needs to meet, submit something to the EDA and then submit it to the Council. · Commissioner Kedrowski said the second meeting in June there would be something for the Council. A:~EDA42098.DOC 8 April 20, 1998 EDA Minutes · Planning Director Rye said until cost estimates are together, that is a key element. Executive Director Boyles said they need to provide financing recommendations. He went on to objective #5) Inventory review of existing properties. That process has been started. · · Commissioner Schenck said staff could do a report and include the acreage which is in Agricultural Preserve. Planning Director Rye said the Vierling Property north of CSAH 42 is in Agricultural Preserve. They can't do anything for three years anyway, but by the next meeting, they will have an inventory of such properties. · President Barsness said these goals are now about a year old. In July, the EDA should have a meeting on its Goals and Objectives. B. Cable Television - EDA Meeting Broadcast Executive Director Boyles said the cameras were ready for cable TV and for meeting coverage. The Council will be getting Cable Televising before June. Formally in June, they will cable cast. The Planning. Commission will begin in September. Similarly, since the EDA is an independent corporate body, the Council would like to cable cast these beginning in September. 10. Announcements or Correspondence: 11. Adjournment: MOTION BY KEDROWSKI SECOND BY GRESSER TO ADJOURN. Upon a vote, ayes by Barsness, Gresser, Kedrowski, Schenck, and Underferth, the motion carried. The meeting adjourn . Executive Recording Secretary A:XEDA42098.DOC 9