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HomeMy WebLinkAboutJune 21, 1999 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, June 21, 1999 5:30 p.m. Fire Station City Council Chambers Call to Order and Pledge of Allegiance. Those present were President Barsness, Commissioners Kedrowski, Underferth and Jader, Executive Director Boyles, City Attorney Pace, Planning Director Rye, Planning Coordinator Kansier, Assistant City Manager Woodson, and City Engineer Greg IIkka. Commissioner Schenck was absent. Approval of May 17 ~ 1999 Meeting Minutes: MOTION BY Kedrowski, SECOND BY JADER, TO APPROVE THE MAY 17, 1999 MEETING MINUTES. VOTE: Ayes by Barsness, Kedrowski, Jader and Underferth, the motion carried. CONSENT AGENDA: Consider Approval of Payment of Invoices MOTION BY KEDROWSKI, SECOND BY UNDERFERTH, TO APPROVE PAYMENT OF INVOICES. VOTE: Ayes by Barsness, Kedrowski, Jader and Underferth, the motion carried. BOYLES: Advised that the items shown on the list of invoices relate to previously directed work or the downtown redevelopment study, which is a partial payment billed by Hoisington Koegler as work progresses for both time and materials. PRESENTATIONS: None. PUBLIC HEARINGS: None. .Q.LD BUSINESS: Review Notes from Joint Council/Planning Commission/EDA Meeting BOYLES: Stated that in the absence of official minutes, the staff has compiled the notes from the joint meeting in order to summarize what was collectively determined as the three priorities for action. The priorities were (1) work with Scott-Rice Telephone to address expansion; (2) to prepare a comprehensive strategy and plan for encouraging office campuses; and (3) to identify steps to deal with development concerns for TJ Towing. Requested any comments from Commissioners. KEDROWSKI: Noted that his understanding was that Item 3 was not a large issue that should be specific to anyone business. UNDERFERTH: Agreed that Item 3 was discussed, but not identified as an overall strategy. Suggested mentioning that the item was discussed, but that it was not a specific priority directed at T J Towing. 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 June 21, 1999 BOYLES: Advised that staff was directed to put together a plan that would provided a clearer picture on behalf of the City what we are seeking with respect to office campuses so that the EDA and staff would know what specifically the City has to offer and what the City can do. Memorandum of Understanding with Scott County HRA MOTION BY KEDROWSKI, SECOND BY UNDERFERTH TO APPROVE THE MEMORANDUM OF UNDERSTANDING WITH THE SCOTT COUNTY HRA AS AMENDED. BOYLES: Noted the past direction of the EDA with respect to this issue, and the specific differences between a Memorandum of Understanding, as a statement of policy, and an actual mutual aid agreement which is a more specific commitment. Also noted that a joint powers agreement could be entered into at the time a more specific project was identified. Noted one change to the memorandum to include that the Recitals would be set forth as if specifically restated in the items adopted. VOTE: Ayes by Barsness, Kedrowski, Jader and Underferth, the motion carried. Business Surveys BOYLES: Stated that this is a follow-up item as to the procedure for completing the interviews of local businesses. MOTION BY KEDROWSKI, SECOND BY UNDERFERTH TO CONTINUE THIS ITEM TO JULY 19TH AND IF NOT COMPLETED BY JUNE 30TH, STAFF IS AUTHORIZED TO ASSIGN BUSINESSES IN ORDER TO PROCEED WITH THE PROCESS. VOTE: Ayes by Barsness, Kedrowski, Jader and Underferth, the motion carried. JADER: Asked if the Chamber survey has been completed and if those results are available. More specifically asked what businesses were contacted. UNDERFERTH: Advised that 70 of the 100 Chamber businesses have been interviewed. At this point only preliminary results as to the Chamber are available. RYE: Commented that the list provided to EDA members were from the Chamber list. KEDROWSKI: Asked Commissioner Underferth if the Chamber interviews reflected a perception of the City, or whether the experiences were based on actual situations. UNDERFERTH: Commented that his theory is that perception is reality. The indication is that the businessperson has the impression that the City is not on the side of the individual. BARSNESS: Suggested contacting other area Chambers to hear the results from other similar communities with respect to how those results compared to our results. JADER: Stated that he did received some information from the Duluth area Chamber of Commerce that he would like to compare keeping in mind that the Duluth study was done by an outside firm and as a part of a whole business retention program. UNDERFERTH: Commented that the Chamber study was done specifically with setting Chamber goals in 1:\ADVBODYS\EDA\MINUTES\99\062199.DOC 2 Economic Development Authority Meeting Minutes June 21, 1999 mind, not necessarily for City or EDA feedback. The results did fairly clearly demonstrate that the area businesses need the Chamber to be a voice for the business owner. NEW BUSINESS: Inventory of High-Density Residential Property BOYLES: Advised that the list of R-4 properties was compiled in response to an EDA directive. Briefly reviewed the details of the undeveloped property within the City. There was discussion among the Commissioners and staff as to the specific potential for development for properties including a parcel located on the southeast quadrant of Cty. Rd. 21 and TH13, a 1.7 acre parcel owned by the City at the intersection of Tower and Toronto, a 30-acre parcel on Pike Lake Trail south of Cty. Rd. 42, a series of parcels totaling 205 acres located north of CSAH 42, a 90-acre parcel locate north of CSAH 42 and west of McKenna Road, and a 40-acre property north of CSAH 42 and east of Cty. Rd. 83 adjoining the west end of Hwy. 7. RYE: Commented that one of the concerns when the Comprehensive Plan was developed and updated, was a concern that CSAH 42 didn't end up looking like it does in Savage and Burnsville. That is why there are not huge amounts of commercial/industrial zoning spreads from one end of CSAH 42 to the other. The property does provide the multi-family housing resource that community needs. BOYLES: Described the undesignated MUSA line proposal identified in the 2010 Comprehensive Plan currently under consideration by the Metropolitan Council. So, even though some properties discussed have no services, services may be provided under the new Comprehensive Plan. UNDERFERTH: Commented that now that properties have been identified, how can the EDA be proactive in its development? Suggested this may be a time to utilize the HRA in promoting development. BARSNESS: Suggested contacting the present owners to inquire about the intended use of the properties, which may include a copy of the HRA study regarding the need for multi-housing development within the City. BOYLES stated that the staff will follow-up with letters to the property owners. Possible Funding Sources for County Road 42 Frontage Road Boyles: Advised that the Planning and Engineering Dept. have researched possible additional funding sources for this project. Rye: Detailed the funding options researched by staff, including an EDA tax levy, HUD grants and DETAD grants. Also noted that the proposed plan offers two alternatives; one which is right-of-way only, and the other which was farther back from CSAH 42. In either case there was only a small residual parcel in excess of the right-of-way. In other words, a significant development opportunity is not created and that is why most of the funding sources criteria do not apply. 1:\ADVBODYS\EDA\MINUTES\99\062199.DOC 3 Economic Development Authority Meeting Minutes June 21, 1999 Underferth: Clarified that not only are there no funding opportunities, there really is no commercial value after the roadway is in. Barsness: Noted that if the County elects to close off the access off of Timothy, the businesses in that area would be at a dead-end. Kedrowski: Asked if the economic redevelopment grant program offers any incentive, or whether staff researched the prospect of a one-time assessment to the business owners. Rye: Stated that the detailed requirements for the grant make it an unlikely option for this project. As with any assessment project, a benefit would need to be shown. We have not looked at that specific option, but it would be appropriate for the final report. EDA Levy Boyles: Advised that the staff has research pursuant to an EDA directive what levy authority the EDA has. One option is to levy per MN statutes for operating purposes at a maximum not to exceed .018130/0 of the taxable market value within the City, which would yield $142,000 based on current values. The second levy is through its housing and redevelopment powers with a maximum cap of - 01440/0, or approximately $112,000 for capital purposes. Rye: Clarified that his understanding is that under either levy, the EDA can use the monies for property acquisition. The difference is that if the City levies on behalf of the EDA, it goes against the City's levying limits. If the EDA wearing its HRA hat levies, then it does not go against the City's levy limits. We are still getting clarification as to the distinction. What you can't do is bond and amortized the bonds with the levy. Barsness: Assuming some portion of a levy is available for something other than operating expenses, it may be worthwhile to create some type of fund to pool money in order to do some of the things the EDA may be facing with the Downtown redevelopment. Since the Council has to approve the levy, the question becomes, is that something we want to recommend. Kedrowski: Keep in mind that the Council will want specific guidelines as to the purpose and intent, or some criteria for the fund. Pace: Commented that as you consider this, you may want to compare what you develop against the criteria for how you use TIF because there may be similarities. Whereas TIF is revenue generated from a different source to be used for a specific purpose, you would be levying and they may be contradictory. Rye: The one advantage with a levy is that you don't have the statutory restrictions as with TIF. Kedrowski: Believes that the intent is that when economic development issues arise, this authority needs to be more than a lip-service facilitator. It costs money to do economic development. Boyles: Suggested creating a subcommittee to develop some criteria in order to submit a draft 1:\ADVBODYS\EDA\MINUTES\99\062199.DOC 4 Economic Development Authority Meeting Minutes June 21, 1999 proposal with the budget for upcoming Council work sessions. Kedrowski and Jader will meet with staff to develop a draft proposal. Underferth: Asked if all the EDA budgets would be incorporated into the levy, and what the effect would be upon each individual household. The Commissioners confirmed that it would be appropriate to incorporate all budgets into the levy. After some discussion, it was estimated that based upon a median market value approximately $2.00 per month per household would be the actual effect of the levy. Draft Budget for Year 2000. Boyles: Reviewed the proposed budget for the upcoming year. MOTION BY KEDROWSKI, SECOND BY UNDERFERTH TO DEFER THE BUDGET TO THE NEXT MEETING AND HAVE THE SUBCOMMITTEE REVIEW IT IN CONNECTION WITH WHETHER OR NOT THE EDA PROPOSES A LEVY AND INCORPORATE THE WHOLE BUDGET WITHIN THE LEVY. VOTE: Ayes by Barsness, Kedrowski, Jader and Underferth, the motion carried. Underferth: Recommended reviewing the professional services and promotional line items because next year the EDA does not have any property to promote. Rye: Advised that discussions have occurred with the consultant as to alternative contracting methods. Also noted that should a project come up as a result of the Downtown project, the City may need consultant/promotional services. Kedrowski: Commented that the EDA not necessarily eliminate the consultant because hiring consultant services at a later date may be significantly more expensive. The Commissioners agreed that it would be appropriate for staff to redefine the consultant's role and payment contract. Wetland Mitigation for 4.5 Acre Parcel. MOTION BY KEDROWSKI, SECOND BY UNDERFERTH TO APPROVE RESOLUTION 99-XX APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING THE ADVERTISEMENT FOR BIDS FOR WETLAND FILL MITIGATION IN WATERFRONT PASSAGE ADDITION FOR THE CITY OF PRIOR LAKE. Boyles: Stated that in accordance with EDA direction, staff is proceeding with the necessary steps to prepare the remaining 4.5 acre property for marketing. Staff researched (1) what the cost for surveying would be, (2) what soil correction is necessary; and (3) develop a report as to wetland mitigation in order to make the property more developable. The question has become to what extent the mitigation I :\ADVBODYS\EDA\MINUTES\99\062199.DOC 5 Economic Development Authority Meeting Minutes June 21, 1999 of this property makes it more developable. Kedrowski: Asked the estimated value of the property if the EDA completes the mitigation. Rye: Commented that the asking price without soil correction was approximately $2.00 per s.f. The mitigation of the property would go along way in solving the marketability of the property. Barsness: Suggested putting up a "For Sale" sign on the property. VOTE: Ayes Barsness, Kedrowski, Jader and Underferth, the motion carried. Barsness: Asked if the EDA has those funds available in its budget. Rye: Advised that the staff could not have anticipated the wetland mitigation as a line item a year ago, so the funds aren't specifically denoted. Other Business: Review 1999 EDA Goals and Objectives. Barsness: Advised that Don, Frank and he reviewed the goals and recommended several revisions. The EDA decided to review the highlighted goals list individually in order to be able to direct limited staff time towards specific priorities, and to discuss this item at the next meeting. Announcements: NONE. Upon a motion and second, the meeting adjourned at 6:48 p.m. 1:\ADVBODYS\EDA\MINUTES\99\062199.DOC 6