HomeMy WebLinkAbout06 20 2016 EDA Minutes FINAL
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Economic Development Authority Meeting Minutes
June 20, 2016
EDA / TECHNOLOGY VILLAGE JOINT WORK SESSION
This work session is to discuss the “Analysis of the Current Program & Expansion Plan for the Technology
Village Business Accelerator Program” by Greenwood Consulting Group, Inc., dated May 17, 2016. Four
members of the EDA and three members of the TVBOD were present (see names below).
Rogness & McCabe: provided a general summary of the report, including the process that led up to hiring
Greenwood to complete the analysis.
Hughes: said this was an excellent report that looked at best practices across the U.S., but Jim Green-
wood was not able to obtain much local survey data; Hughes felt the theme throughout the report was fo-
cused on having a sustainable program.
McCabe: provided further information about a recent conversation with Stacy Crakes of Scott County
CDA’s First Stop Shop whereby the CDA may restructure a second vacant staff description to include time
given to Technology Village as its executive director. That person would also help explore expanding the
program county-wide.
Hedberg: emphasized that most of the successful business accelerator programs were privately funded;
he would like to see this group provide recommendations to the EDA for further consideration.
Hughes: said the report shows value in its participants, and that having a director provides a large impact
to the sustainability of the program.
Proehl: likes the idea of county support, which would help on the operational side; he emphasized the ap-
peal of staying south of the river for businesses not having to cross going north, which may be an important
factor to grow the program larger.
Hughes: reviewed the list of concerns (small facility, low revenue potential, problematic financial situation,
disincentive of payback clause, limits on staffing, limited city council support, heavy dependence on Board
of Directors, and an overly narrow market focus).
Sheehan-Kerber: likes the idea of having more of a focus on the renting of meeting rooms at City Hall for
business (incubator) purposes.
Choudek: felt that this program was never intended to stay as-is, but also recognized that its focus may
need to change, including this opportunity with the CDA as a win-win scenario.
Hedberg: pointed out that Technology Village is a proof of concept that has been achieved during the past
three years.
Proehl: said that ultimately, growing jobs in this area is the key factor and outcome.
Boyles: thought that by having the City control its space, we should be able to use the same template for
growth; he also thinks this type of program fits well within SCALE as a business growth initiative.
McCabe: asked those present to focus on whether the report’s long-term plan makes sense, and if so,
how is it going to be achieved.
Hedberg: responded that we should all tuck that long-term plan away for a while, and instead, focus on a
proposal with the CDA for support and further exploration.
Keeney: said that the way to overcome limited city council support is to show sustainability and to do that
using a simple message.
Hedberg: thanked everyone for their participation in this work session, and said more dialogue will take
place by the EDA as the CDA opportunity unfolds into the 2017 budget discussion.
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1. CALL TO ORDER
President Hedberg called the meeting to order at 5:03 p.m. Present were Hedberg, Keeney, Choudek and
Sheehan-Kerber. Present from the Technology Village Board of Directors were Hughes, Proehl and Strat-
ton. Also present were Executive Director Boyles, Community & Economic Development Director Rogness
and Community Development Specialist McCabe. Others present included Lloyd Erbaugh representing the
Economic Development Advisory Committee (EDAC).
2. APPROVAL OF AGENDA
MOTION BY SHEEHAN-KERBER, SECONDED BY CHOUDEK TO APPROVE THE AGENDA.
VOTE: Ayes by Hedberg, Keeney, Choudek and Sheehan-Kerber. The motion carried.
3. APPROVAL OF MEETING MINUTES
MOTION BY CHOUDEK, SECONDED BY KEENEY TO APPROVE THE MAY 16, 2016 MEETING
MINUTES.
Ayes by Hedberg, Keeney, Choudek and Sheehan-Kerber. The motion carried.
4. CONSENT AGENDA
A. EDA 2016 Revenue & Expenditure Report (5/31/16)
Rogness distributed and summarized the report through May of 2016 showing revenues of $12,301.82 and
expenses of $60,006.91.
B. Consider Approval of a Targeted Commercial Business Assistance Program Application – Pizza
‘N Pasta
McCabe summarized the approval to pay $20,000 to Pizza ‘N Pasta as part of a local targeted relocation
program using TIF 1-1 funds.
MOTION BY KEENEY, SECONDED BY SHEEHAN-KERBER TO APPROVE THE TWO CONSENT
AGENDA ITEMS A AND B.
Ayes by Hedberg, Keeney, Choudek and Sheehan-Kerber. The motion carried.
5. REMOVED CONSENT AGENDA ITEMS
No items were removed from the Consent Agenda
6. PUBLIC HEARING
No Public Hearings
7. OLD BUSINESS
A. Downtown Development Guide Update - Discussion
Rogness & McCabe: reviewed their discussion with a consultant from HKgi who will be updating the
map/graphic of downtown. They are proposing two maps, one showing what has been accomplished since
2000 and one showing what is proposed to be done in the future.
Hedberg: said that the key massage coming from this effort is that the 2000 guide plan for downtown
shows much of what needs to be accomplished from that point on, which would benefit from this update
showing what has been accomplished since that time . He also asked how this update should reflect any
expanded boundaries of downtown, both northerly and southerly.
McCabe: responded that any expansion of the downtown would be shown more as a fuzzy line or area
without any great detail.
Choudek: supported the two maps showing accomplishments and future improvements.
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Keeney: asked that the updates show the proposed changes to Highways 13 and 21, including connec-
tions to Pleasant Ave, the Main Ave. closure, and the future signal at Arcadia.
Sheehan-Kerber: proposed a disclaimer on these updates that would clearly indicate that plans are sub-
ject to change.
8. NEW BUSINESS
A. Preliminary 2017 EDA Budget
Rogness: summarized the proposed first draft of the 2017 EDA budget as described in the staff report,
which would be $160,825 compared to $181,425 in 2016. The primary reduction relates to Technology Vil-
lage going from $27,650 in 2016 to $9,500 in 2017 in order to more closely match its expenditures to its
revenues (leases). The proposed 2017 tax levy would be $130,000 and the use of its reserves would be
$19,825, resulting in an overall tax levy reduction of $25,000 from this year.
Hedberg: recommended that the budget be further amended to reduce the use of EDA reserves by
$10,000 and increase the tax levy by that amount.
Sheehan-Kerber: agreed with Hedberg’s proposal.
Choudek: said that if you take out staff costs in the budget, there’s really not much left at a pproximately
$35,000, which does not allow the EDA to be very effective. She wondered what other similar city EDA
budgets are like.
Keeney: noted that the EDA does not have a “pile” of project coming to it for support, so a large budget
needs to have a purpose.
Hedberg: agreed for the reason that Prior Lake is an edge community with not much market support for a
lot of commercial/industrial development. However, it should probably build its financial resources for the
future with it may be needed in 20 years or so as the city grows southwest.
Keeney: supports that idea of capturing more of the local businessperson resources from those who live in
Prior Lake with business interests. This topic could become a further brainstorm topic idea for the EDA.
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9. OTHER BUSINESS
A. Commissioner Comments
Choudek: suggested that a new regular agenda item be added under Other Business that would be an
update on previous City Council actions that relate to business.
10. ADJOURNMENT
MOTION BY HEDBERG, SECONDED BY SHEEHAN-KERBER TO ADJOURN THE MEETING. With all in
favor, the meeting adjourned at 6:01 p.m.
___________________________
Frank Boyles, Executive Director