HomeMy WebLinkAbout03 20 2017 EDA Agenda Packet FULLPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
AGENDA
Monday, March 20, 2017 – 4:00 p.m.
Reports included with this agenda can be found in the Document Center at www.cityofpriorlake.com;
please follow this file path: City of Prior Lake\Economic Development Authority\2017\March 20, 2017
1.CALL TO ORDER / INTRODUCTION
2.APPROVAL OF AGENDA
3.APPROVAL OF MEETING MINUTES
A.January 25, 2017
4.CONSENT AGENDA
A.
B.
EDA 2017 Revenue & Expenditure Report (2/28/17)
EDAC Member Appointment
5.REMOVED CONSENT AGENDA ITEMS
6.PUBLIC HEARINGS
A.No Public Hearings Scheduled
7.OLD BUSINESS
A.
B.
C.
EDA 2016 Revenue & Expenditure Report (Y/E 12/31/16)
EDA 2017 Budget – EDA Tax Levy
Schedule and Set Agenda for Joint City Council/EDA Meeting
8.NEW BUSINESS
A.
B.
Tax Abatement Inquiry
City of Prior Lake Promotional Video
9.OTHER BUSINESS
A.Commissioner Comments
10.ADJOURNMENT: 6:00 p.m.
Those items on the EDA Agenda which are considered routine and non-controversial are included as part of the Consent Agenda.
Unless the President or an EDA member specifically requests that an item be on the Consent Agenda be removed and considered
separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the
Consent Agenda shall be placed on the EDA agenda under “Removed Consent Agenda Items”
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
Economic Development Authority Meeting Minutes
January 25, 2017
1. CALL TO ORDER
Community Development Director Rogness called the meeting to order at 4:20 p.m. Present were Chromy,
Sheehan-Kerber, Briggs and Braid. Also present were Executive Director Boyles, Community & Economic
Development Director Rogness, Community Development Specialist McCabe and City Attorney Schwarzhoff.
8. NEW BUSINESS
A. Election of Officers
MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO APPOINT CHROMY AS THE PRESI-
DENT OF THE EDA FOR A TERM EXPIRING ON DECEMBER 31, 2017. Ayes by Chromy, Sheehan -
Kerber, Briggs and Braid. The motion carried 4-0.
MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO APPOINT BRAID AS THE VICE
PRESIDENT OF THE EDA FOR A TERM EXPIRING ON DECEMBER 31, 2017. Ayes by Chromy,
Sheehan-Kerber, Briggs and Braid. The motion carried 4-0.
MOTION BY CHROMY, SECONDED BY BRIGGS TO APPOINT BOYLES AS THE SECRETARY, FI-
NANCE DIRECTOR URAM AS THE TREASURER AND ROGNESS AS THE ASSISTANT TREASURER
OF THE EDA FOR A TERM EXPIRING ON DECEMBER 31, 2017. Ayes by Chromy, Sheehan-Kerber,
Briggs and Braid. The motion carried 4-0.
2. APPROVAL OF AGENDA
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE AGENDA. Ayes by Chromy, Sheehan-
Kerber, Briggs and Braid. The motion carried 4-0.
3. APPROVAL OF MEETING MINUTES
MOTION BY SHEEHAN-KERBER, SECONDED BY SHEEHAN-KERBER TO APPROVE THE NOVEMBER
21, 2016 MEETING MINUTES.
Ayes by Sheehan-Kerber. The motion carried 1-0-3 with Briggs, Chromy and Braid abstaining since they
were not in attendance of the meeting.
4. CONSENT AGENDA
None
,
5. REMOVED CONSENT AGENDA ITEMS
No items were removed from the Consent Agenda
6. PUBLIC HEARING
No Public Hearings
2
7. OLD BUSINESS
A. EDA Member Appointment Process
Boyles: informed the commissioners that the city has received four applications for the vacant position
on the EDA. Mr. Boyles reviewed the process to fill a vacancy as detailed in the EDA Bylaws and asked
the commissioners to identify a screening committee from its membership to review the applications and
narrow the applicants from four to three finalists. The three finalists will then be interviewed by the City
Council prior to a February Council meeting and the mayor will make a recommendation for the EDA
appointment which will be voted on by the City Council. The EDA identified Boyles, Rogness, Sheehan-
Kerber, Briggs and Chromy to serve as the screening committee. City staff will coordinate a meeting to
review the applications with the screening committee.
B. EDA Bylaw and Enabling Resolution Review
As part of the orientation for new EDA members and a refresher for continuing members, City Attorney
Schwarzhoff reviewed the EDA enabling resolution (Res. 13-018) and EDA Bylaws and highlighted re-
cent revisions to both documents.
8. NEW BUSINESS
B. Advisory Committee Appointments
Rogness: introduced the agenda report and requested the EDA appoint a liaison to the Economic Devel-
opment Advisory Committee and an EDA member to the Technology Village Board of Directors. Mr.
Rogness reviewed the subcommittee meeting dates and reviewed the EDA member roles on these com-
mittees.
MOTION BY BRIGGS, SECONDED BY BRAID TO APPOINT BRAID AS THE EDA APPOINTMENT TO
THE TECHNOLOGY VILLAGE BOARD OF DIRECTORS. Ayes by Chromy, Sheehan -Kerber, Briggs
and Braid. The motion carried 4-0.
MOTION BY BRIGGS, SECONDED BY BRAID TO APPOINT BRIGGS AS THE EDA LIAISON TO THE
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE. Ayes by Chromy, Sheehan-Kerber, Briggs
and Braid. The motion carried 4-0.
C. SAC Fee Deferral Subordination Request
McCabe: summarized a request the city received from Lakers Holdings, LLC to subordinate the city’s
lien position related to a Sewer Availability Charge (SAC) Deferred Payment Agreement to facilitate the
refinancing of the Charlie’s on Prior restaurant. Mr. McCabe reviewed the loan hi story, funding amount,
payments received and the agreement security; which is secured with the city’s ability to assess the
property for monies owed in the event of default. Mr. McCabe also informed the EDA that if the business
were to cease operations for some reason the city can stop its SAC related payments to the Metropolitan
Council for this project. Commissioners felt the risks associated with the request were limited.
MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO RECOMMEND THE CITY COUNCIL
AUTHORIZE THE MAYOR AND CITY MANAGER TO EXECUTE THE TWO SUBORDINATION
AGREEMENTS AS REQUESTED BY LAKERS HOLDINGS, LLC. Ayes by Chromy, Sheehan -Kerber,
Briggs and Braid. The motion carried 4-0.
D. Technology Village Lease Agreement
McCabe: summarized the lease agreement between the City of Prior Lake and the EDA which allows the
EDA, through the Technology Village Board of Directors, to lease space to Technology Village program
participants. Mr. McCabe reviewed proposed revisions to the Technology Village Leas e Agreement
which have been recommended by the Technology Village Board of Directors and include: 1) elimination
3
of the escalating rent structure ($5/SF year 1, $10/SF year 2 and $15/SF year 3) in favor of a flat $10.00
per square foot lease rate; 2) adjust the lease commitment term from three years to one -year terms that
automatically renew for up to three years; 3) elimination of the reimbursable rent and operating expenses
‘claw back’ language; and 4) a security deposit equal to one month’s rent was added to the lease agree-
ment.
EDA Commissioners: discussed the positives and negatives associated with the current ‘claw back’ lan-
guage which requires a participant to reimburse the deferred operating expenses if a business relocates
outside of Scott County. The commissioners also discussed the new focus for the Technology Village
program to expand to a ‘county-wide’ accelerator program. The EDA supported the proposed lease
agreement revisions.
MOTION BY BRAID, SECONDED BY BRIGGS TO APPROVE THE REVISIONS TO THE TECHNOL-
OGY VILLAGE LEASE AGREEMENT AS PRESENTED. Ayes by Chromy, Sheehan -Kerber, Briggs and
Braid. The motion carried 4-0.
E. 2016 Development Update
Rogness: provided a 2016 residential and commercial development update including the review of 2016
building permit activity.
Briggs: commented on the increase in building permit revenues compared to 2015 was largely due to the
Grainwood multi-family development project which received TIF assistance. Mr. Briggs recommended
the EDA review the current TIF Policy and discuss the committee’s philosophy related to the use of TIF
at a future meeting. The commissioners felt a joint meeting on this topic with the City Council may be
appropriate.
9. OTHER BUSINESS
EDA Members: requested the next regular meeting include a presentation on the 2017 EDA budget, 2016
revenues and expenditures and an EDA tax levy discussion.
Rogness: informed the committee that the City of Prior Lake was contacted by the resident who asked if the
city would be interested in acquiring his single-family residential property near the Charlie’s on Prior parking
lot. Mr. Rogness suggested if the city or restaurant owner chose to purchase the lot then the existing parking
lot could be expanded. After discussion, the EDA declined to pursue any potential negotiations for this prop-
erty.
10. ADJOURNMENT
MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO ADJOURN THE MEETING. With all in
favor, the meeting adjourned at 6:18 p.m.
___________________________
Frank Boyles, Executive Director
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 4A
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: EDA 2017 REVENUE & EXPENDITURE REPORT (2/28/17)
DISCUSSION: Introduction
The purpose of this Consent Agenda item is to review the 2017 Revenue & Expendi-
ture Report for the EDA through February 28, 2017.
History
The EDA Commissioners requested monthly financial reports at each meeting. This
allows the EDA to view revenues and expenditures on a more frequent basis; quar-
terly reports were provided in the past.
Current Circumstances
Very few expenditures have occurred during the first two months of the year, includ-
ing legal ($320), training ($140), and memberships ($500). Revenues are minimal
until the tax levy is received by the City twice per year in June and December. Until
the first tax payment is received EDA Reserves are used for cash flow purposes.
Conclusion
EDA members receive monthly financial reports of revenues and expenditures.
ISSUES: This document provides a summary of activities associated with costs as budgeted
by the EDA on a monthly basis.
FINANCIAL
IMPACT:
None.
ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA 2017 Rev-
enue & Expenditure Report through February 28, 2017.
2. Motion and second to remove this item from the consent agenda for additional
discussion.
RECOMMENDED
MOTION:
Alternative #1
ATTACHMENTS: EDA 2017 Revenue & Expenditure Report (2/28/17)
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 4B
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: EDAC MEMBER APPOINTMENT
DISCUSSION: Introduction
The purpose of this agenda item is to consider the appointment of Ronald Martin to the Eco-
nomic Development Advisory Committee (EDAC).
History
Section 203. Appointment, of the EDAC Bylaws states, The Committee shall consist of no
more than thirteen (13) members appointed by the Economic Development Authority. Said
members shall consist of residents and non-residents affiliated with a business located within
the City of Prior Lake as may be determined by the Economic Development Authority. No
more than 40% of the Committee shall be non -residents. EDAC members shall serve for a
term of three (3) years commencing on November 1 and concluding on Oc tober 31.
Current Circumstances
The City of Prior Lake solicited applications for the Economic Development Authority and four
applications were received. The EDA screening committee reviewed the applications and con-
ducted an interview with all four candidates. As stated in the EDA Bylaws, the screening
committee was charged with narrowing the list of EDA candidates to three persons who will
then be interviewed by the City Council and considered for appointment. The screening com-
mittee felt Mr. Martin would be a good candidate to serve on the EDAC and Mr. Martin ex-
pressed interest in serving on the EDAC.
The EDAC currently has nine appointed members, not including Kirt Briggs who serves as the
EDA liaison and Sandi Fleck who serves as the Chamber of Commerce liaison. If the EDA
appoints Mr. Martin, the EDAC will consist of ten appointed members.
Conclusion
The EDAC Bylaws establish a screening committee to interview applicants, which shall in-
clude the City Manager, the EDA liaison to the EDAC, the staff liaison to the EDAC and one
member of the EDAC to serve as the screening committee. The EDA screening committee,
not the EDAC screening committee, conducted the interview and is recommending the ap-
pointment of Ronald Martin to the EDAC. The EDA screening committee included City Man-
ager Boyles, Mayor Briggs, EDA Member Sheehan -Kerber and Community Development
Specialist McCabe.
2
City staff reviewed the EDA screening committee recommendation to appoint Mr. Martin to
the EDAC with the EDAC Chair and Vice Chair. The EDAC Chair and Vice Chair support the
appointment of Mr. Martin to the EDAC.
ISSUES: The EDA may accept or reject the recommendations of the screening committee.
Since the EDAC typically takes action through affirmation rather than vote, having an even
number should not create a voting problem.
FINANCIAL
IMPACT:
EDAC members serve without compensation.
ALTERNATIVES: 1. Motion and a second as part of the Consent Agenda to approve a resolution appointing
Ronald Martin to the EDAC for a term of March 20, 2017 to October 31, 2019.
2. Motion and second to remove this item from the consent agenda for discussion.
RECOMMENDED
MOTION:
ATTACHMENT:
Alternative #1
1. EDAC Advisory Committee Application
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-01 EDA
A RESOLUTION APPOINTING RONALD MARTIN
TO THE ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
Motion By: Second By:
WHEREAS, Vacancies exist on the Economic Development Advisory Committee; and
WHEREAS, Applications were solicited from others in the community who are interested; and
WHEREAS, Notice of such vacancies were placed in the Prior Lake American and City Website; and
WHEREAS, Applications were received and interviews conducted.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF
THE CITY OF PRIOR LAKE, MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. That the following individuals are appointed to fill the following terms:
Appointee Date Appointed End of this Appointment Term Limit
Ronald Martin March 20, 2017 October 31, 2019 October 31, 2025
PASSED AND ADOPTED THIS 20th DAY OF MARCH, 2017.
VOTE Briggs Braid Chromy Vacant Sheehan-Kerber
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, Executive Director
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 7A
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: EDA 2016 REVENUE & EXPENDITURE REPORT (Y/E 12/31/16)
DISCUSSION:
ISSUES:
Introduction
The purpose of this agenda item is to provide the EDA with a summary of 2016
EDA revenues and expenditures.
History
The EDA’s 2016 budget was approved by the City Council to include the following
primary factors:
1. The budget included an EDA tax levy of $155,000.
2. The budget included 50% personnel support for Community & Economic
Development Director and Community Development Specialist.
3. The budget included $27,650 for Technology Village.
4. $15,925 of EDA reserves was allocated to balance the budget.
5. The total 2016 EDA budget was $181,425.
6. The 2015 fiscal year ended with EDA reserves of $183,950.
EDA Members should feel comfortable in asking about any aspect of the previous
year’s EDA Budget.
FINANCIAL
IMPACT:
None
ALTERNATIVES: 1. Motion and a second to accept staff’s 2016 EDA Revenue & Expenditure re-
port.
2. Take no action and provide direction to staff.
RECOMMENDED
MOTION:
Alternative #1.
ATTACHMENTS: 1. EDA 2016 Revenue & Expenditures
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE03/13/2017 03:42 PM
User: Janet
DB: Prior Lake PERIOD ENDING 12/31/2016
DR ACTIVITY FOR
MONTH
12/31/16
% BDGT
USED
UNENCUMBERED
BALANCE
ENCUMBERED
YEAR-TO-DATE
YTD BALANCE
12/31/2016
ACTIVITY FOR
MONTH
12/31/16
2016
AMENDED BUDGET
2016
ORIGINAL
BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Revenues
Dept 00000.00-GENERAL
0.00 100.04 (69.43)0.00 155,069.43 75,228.34 155,000.00 155,000.00 Current Property Taxes - General Purpos240-00000.00-31010.00
(396.62)0.00 0.00 0.00 0.00 0.00 0.00 0.00 Market Value Credit Aid240-00000.00-33423.00
0.00 441.71 (1,708.54)0.00 2,208.54 248.64 500.00 500.00 Interest Earnings240-00000.00-36210.00
(438.79)100.00 311.46 0.00 (311.46)(438.79)0.00 0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00
(835.41)100.94 (1,466.51)0.00 156,966.51 75,038.19 155,500.00 155,500.00 Total Dept 00000.00-GENERAL
Dept 46500.00-ECONOMIC DEVELOPMENT
0.00 100.00 (7,277.72)0.00 7,277.72 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14
0.00 100.00 (7,277.72)0.00 7,277.72 0.00 0.00 0.00 Total Dept 46500.00-ECONOMIC DEVELOPMENT
Dept 46503.00-TECH VILLAGE INCUBATOR
(3,038.37)63.40 3,660.01 0.00 6,339.99 (2,560.87)10,000.00 10,000.00 Facility Rental - EDA240-46503.00-34760.02
(3,038.37)63.40 3,660.01 0.00 6,339.99 (2,560.87)10,000.00 10,000.00 Total Dept 46503.00-TECH VILLAGE INCUBATOR
(3,873.78)103.07 (5,084.22)0.00 170,584.22 72,477.32 165,500.00 165,500.00 TOTAL REVENUES
Expenditures
Dept 46500.00-ECONOMIC DEVELOPMENT
7,339.11 99.93 70.42 0.00 94,333.58 7,339.11 94,404.00 94,404.00 Wages - Full Time240-46500.00-51100.01
300.00 56.67 1,300.00 0.00 1,700.00 300.00 3,000.00 3,000.00 Wages - Commissioners240-46500.00-51100.05
42.08 100.00 (55.70)0.00 55.70 42.08 0.00 0.00 Overtime - Full Time240-46500.00-51110.01
36.71 99.96 0.19 0.00 471.81 36.71 472.00 472.00 Compensated Absences240-46500.00-51400.00
464.17 94.84 311.48 0.00 5,727.52 464.17 6,039.00 6,039.00 Social Security Contributions240-46500.00-51450.00
108.57 94.88 72.31 0.00 1,339.69 108.57 1,412.00 1,412.00 Medicare Contributions240-46500.00-51451.00
553.59 99.15 60.79 0.00 7,079.21 553.59 7,140.00 7,140.00 PERA Contributions240-46500.00-51460.00
726.70 100.00 (0.40)0.00 8,720.40 726.70 8,720.00 8,720.00 Health Insurance240-46500.00-51470.00
20.00 100.00 0.00 0.00 240.00 20.00 240.00 240.00 Retiree HCSP Contributions240-46500.00-51472.00
40.00 100.00 0.00 0.00 480.00 40.00 480.00 480.00 Dental Insurance240-46500.00-51473.00
5.26 100.19 (0.12)0.00 63.12 5.26 63.00 63.00 Life Insurance240-46500.00-51474.00
0.00 17.90 360.40 0.00 78.60 0.00 439.00 439.00 Workers Compensation Insurance240-46500.00-51477.00
0.00 44.76 138.09 0.00 111.91 0.00 250.00 250.00 Office Supplies240-46500.00-52010.00
0.00 59.55 1,011.25 0.00 1,488.75 0.00 2,500.00 2,500.00 Legal Services240-46500.00-53020.00
472.50 80.10 4,844.55 0.00 19,505.45 472.50 24,350.00 24,350.00 Professional Services - General240-46500.00-53100.80
0.00 79.60 51.00 0.00 199.00 0.00 250.00 250.00 Telecommunications240-46500.00-53210.00
0.00 28.89 853.36 0.00 346.64 0.00 1,200.00 1,200.00 Training and Employee Development240-46500.00-53310.10
0.00 0.00 500.00 0.00 0.00 0.00 500.00 500.00 Required Notice Publication240-46500.00-53510.00
0.00 52.67 355.00 0.00 395.00 0.00 750.00 750.00 Memberships and Subscriptions240-46500.00-54310.00
0.00 0.00 1,566.00 0.00 0.00 0.00 1,566.00 1,566.00 Miscellaneous Expense240-46500.00-54320.00
10,108.69 92.56 11,438.62 0.00 142,336.38 10,108.69 153,775.00 153,775.00 Total Dept 46500.00-ECONOMIC DEVELOPMENT
Dept 46503.00-TECH VILLAGE INCUBATOR
122.74 18.02 409.88 0.00 90.12 122.74 500.00 500.00 Office Supplies240-46503.00-52010.00
525.00 100.00 (735.00)0.00 735.00 525.00 0.00 0.00 Legal Services240-46503.00-53020.00
1,532.50 36.45 3,177.50 0.00 1,822.50 1,532.50 5,000.00 5,000.00 Telecommunications240-46503.00-53210.00
0.00 35.19 7,875.00 0.00 4,275.00 0.00 12,150.00 12,150.00 Rent Subsidies240-46503.00-54095.00
0.00 0.00 3,000.00 0.00 0.00 0.00 3,000.00 3,000.00 Business Assistance240-46503.00-54100.00
0.00 20.00 2,000.00 0.00 500.00 0.00 2,500.00 2,500.00 Memberships and Subscriptions240-46503.00-54310.00
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE03/13/2017 03:42 PM
User: Janet
DB: Prior Lake PERIOD ENDING 12/31/2016
DR ACTIVITY FOR
MONTH
12/31/16
% BDGT
USED
UNENCUMBERED
BALANCE
ENCUMBERED
YEAR-TO-DATE
YTD BALANCE
12/31/2016
ACTIVITY FOR
MONTH
12/31/16
2016
AMENDED BUDGET
2016
ORIGINAL
BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Expenditures
371.67 16.72 2,081.91 0.00 418.09 371.67 2,500.00 2,500.00 Miscellaneous Expense240-46503.00-54320.00
0.00 0.00 1,000.00 0.00 0.00 0.00 1,000.00 1,000.00 Furniture and Office Equipment240-46503.00-55560.00
0.00 99.00 10.00 0.00 990.00 0.00 1,000.00 1,000.00 Machinery and Equipment240-46503.00-55570.00
2,551.91 31.94 18,819.29 0.00 8,830.71 2,551.91 27,650.00 27,650.00 Total Dept 46503.00-TECH VILLAGE INCUBATOR
12,660.60 83.32 30,257.91 0.00 151,167.09 12,660.60 181,425.00 181,425.00 TOTAL EXPENDITURES
(16,534.38)121.93 (35,342.13)0.00 19,417.13 59,816.72 (15,925.00)(15,925.00)NET OF REVENUES & EXPENDITURES
12,660.60 83.32 30,257.91 0.00 151,167.09 12,660.60 181,425.00 181,425.00 TOTAL EXPENDITURES
(3,873.78)103.07 (5,084.22)0.00 170,584.22 72,477.32 165,500.00 165,500.00 TOTAL REVENUES
Fund 240 - EDA SPECIAL REVENUE FUND:
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 7B
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: EDA 2017 BUDGET – EDA TAX LEVY
DISCUSSION: Introduction
The purpose of this agenda item is to provide the EDA with a review of the 2017
EDA budget.
Current Circumstances
The EDA’s 2017 budget was approved by the City Council to include the following
primary factors:
1. The EDA tax levy decreased from $155,000 to $140,000.
2. Revenues of $8,500 from Technology Village leases assumes 90% occu-
pancy (100% = $9,500).
3. Use of EDA budget reserves of $9,825 to balance the budget compared to
$15,925 in 2016.
4. Slight changes are made to the line items, but overall, the EDA expendi-
tures do not change; $20,000 is budgeted for Professional Services.
5. Technology Village budget decreased from $27,650 to $9,500; assuming
full rent is received during the year, this budget shows Technology Village
expenditures matching revenue.
FINANCIAL
IMPACT:
None.
ALTERNATIVES: 1. Motion and a Second to accept staff’s EDA 2017 Budget report.
2. Take no action and provide direction to staff.
RECOMMENDED
MOTION:
Alternative #1.
ATTACHMENT: 1. EDA 2017 Budget
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 7C
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: SCHEDULE AND SET AGENDA FOR JOINT CITY COUNCIL/EDA MEETING
DISCUSSION:
Introduction
The purpose of this agenda item is to discuss agenda topics and potential meeting
dates for a joint meeting between the EDA and City Council.
History
During the January 25, 2017 EDA meeting, commissioners recommended the
EDA review the current TIF Policy and discuss the city’s philosophy related to the
use of TIF. The commissioners felt a joint meeting on this topic with the City
Council may be appropriate.
Current Circumstances
EDA members should discuss agenda topics and propose a few dates for a joint
meeting with the City Council to discuss Tax Increment Financing and other de-
velopment incentives.
ISSUES: For reference, city staff has attached copies of the TIF Policy, Business Subsidies
Policy and Local Business Incentives Policy for EDA review.
FINANCIAL
IMPACT:
None.
ALTERNATIVES: 1. Motion and a Second to direct staff to schedule a joint meeting between the
EDA and City Council to discuss Tax Increment Financing and other develop-
ment incentives.
2. Take no action and provide direction to staff.
RECOMMENDED
MOTION:
ATTACHMENTS:
Alternative #1
1. TIF Policy
2. Business Subsidies Policy
3. Local Business Incentives Policy
ECONOMICDEVELOPMENTAUTHORITYTAXINCREMENTFINANCINGPOLICYAdoptedbyCityCouncilApril162001AmendedbyCityCouncilOctober182004PURPOSEThispolicyisestablishedtooutlinetheCityspositionontheuseoftaxincrementfinancingTIFpolicyforprivatedevelopmentThispolicywillbeusedasaguideinprocessingandreviewingapplicationsfortaxincrementfinancingassistanceInaccordancewiththeTIFpolicyTIFrequestsmustcomplywithapplicablestatestatutesTheCityofPriorLakeisgovernedbythelimitationsestablishedinMinnesotaStatutesChapter469174theMinnesotaTaxIncrementFinancingActforalldistrictscreatedafterAugust11979PROGRAMGOALSThisprogramexiststoachievethefollowinggoals1Topromotecommercialindustrialandresidentialdevelopmentunderspecialcircumstancesthatwouldotherwisenotoccur2ToincreaseanddiversifythelongtermtaxbaseoftheCityinordertoensuretheabilityoftheCitytoprovideadequateservicesforitsresidentswhilelesseningrelianceontheresidentialpropertytax3ToimprovetheCityseconomicvitalitythroughthecreationandexpansionofemploymentopportunities4ToremoveblightandencourageredevelopmentinthecommercialandindustrialareasoftheCityinordertoencouragehighlevelsofpropertymaintenanceandprivatereinvestmentinthoseareas5ToassurethatprojectsareconstructedandmaintainedatalevelofqualityconsistentwiththegoalsoftheCityofPriorLake6Toretainlocaljobsincreasethelocaljobbaseandprovideeconomicdiversityinthatjobbase7ToassistinachievingothergoalscontainedinadoptedpublicpoliciesasmaybeadoptedbytheCityCouncilfromtimetotimeincludingwithoutlimitationqualitydesignandconstructionenergyconservationandreductionsinthecapitalandoperatingcostsofgovernment8ToprovidehighdensityhousingaspartofamixedusedevelopmentwhichincludesretailandofficeusesinselectareasintheC3zoningdistrictandotherareasasmaybedeemedappropriatebytheCityCouncil9ToprovideTIFassistanceconsistentwiththeTIFPolicyBusinessSubsidyPolicyComprehensivePlanandZoningOrdinanceoftheCitytoeligiblecompaniesplanningtobuildTIFeligiblebusinessesintheDeerfieldIndustrialParkandotherareaszonedIndustrialPROGRAMELIGIBILITYCRITERIAQualifiedprojectsshouldmeetorexceedthefollowingcriteriatobeeligibleforTIFassistanceMeetingthethresholdofeligibilitydoesnotguaranteeapprovaloftheprojectbytheCityConverselyfailuretomeetthecriteriawillnotautomaticallyexcludeaproposalfromfurtherconsiderationFinalapprovalofanyprojectwillbemadebytheCityCouncilCityofPriorLakeEconomicDevelopmentAuthorityTaxIncrementFinancingPolicy1
TheprojectmustbeconsistentwiththeCitysComprehensivePlanzoningordinanceandotherapplicableCityordinancesaswellasapplicablestatestatutes1TheprojectshallmeetatleastoneoftheProgramGoalslistedabove2TheapplicantmustbewillingtoenterintoadevelopmentorredevelopmentagreementsatisfactorytotheCity3ItmustbedemonstratedthattheprojectwouldnotbefinanciallyfeasiblebutforthepublicassistancetobeprovidedThelevelofTIFfinancingshallbereducedtothelowestpossiblelevel4Theprojectmustcomplywithallapplicableenvironmentalregulations5Theapplicantmustsubmitallofthematerialsrequiredintheapplication6TheapplicantmustagreetoprovidesuretytotheCitytocoverallcostspaidbytheincrementunlesstheprojectisapayasyougoagreementThesemayincludeassessmentagreementslettersofcreditpersonaldeficiencyguaranteesguaranteedmaximumcostcontractsandminimumpaymentagreements7Theapplicantdevelopermustprovideaminimumof10equityintheproject8TheCityCouncilwillfavorowneroccupiedprojectsoverprojectsthatwillbeleased9ForprojectsinanEconomicDevelopmentDistrictamaximumof50000ofpublicmoneywillbeinvestedforeachfulltimeequivalentpositioncreatedorretained10ForprojectsinRedevelopmentDistrictsthosethatremoveorpreventblightwillbefavored11ForprojectsinRedevelopmentDistrictsaratiooftaxespaidbeforeandafterredevelopmentof12isdesired12TIFwillnotbeusedinprojectsthatwouldgiveasignificantcompetitivefinancialadvantageoversimilarprojectsintheareaunlesstherearespecialcircumstancesthatwarranttheinvestmentofTIFdollarsfortheprojectsuchasasubstantialincreaseinhighqualityjobsacompetitivebusinessmaybeknowntobeexitingtheareaalocalcompetitivebusinessmayhaveannounceditisquittingbusinesstheothercompetitivebusinessprovidesevidencethatitisamenabletothecompetitoretcDeveloperswillprovideinformationtotheCitytodemonstratethatthiscriterionismetThedevelopershouldbeabletoprovidemarketdatalettersofintentorfinancialstatementsthatillustratethemarketpotentialordemandfortheproject13InordertobeeligibletoreceiveTIFbenefitsexceeding25000theapplicantmustsignaBusinessSubsidyAgreementwiththeCityEDA14ForanapplicanttoreceiveTIFassistancefromtheCityitmustdemonstratethatitwillcreateamajorityofjobsatleast60ofnewemployeestobeclassifiedasthosethatpayatleast900perhourorhigherexclusiveofbenefitsTheapplicantforassistancemustcompleteanApplicationforTIFAssistancepursuanttotheproceduresoutlinedintheApplicationPROJECTCOSTSELIGIBLEFORTIFASSISTANCEProjectcoststhatqualifyforTIFassistanceincludethefollowingPropertyacquisitionLandclearanceRelocationanddemolitionofstructuresCityofPriorLakeEconomicDevelopmentAuthorityTaxIncrementFinancingPolicy2
SitepreparationSoilscorrectionRemovalofhazardouswastesorremediationofsitecontaminationInstallationofutilitiesConstructionofpublicorprivateimprovementsAdministrativecostsdirectlyrelatedtotheidentifiedparcelsDesignfeesSurveysEnvironmentalstudiesRelocationofbuildingoccupantsRehabilitationofstructuresSpecialassessmentsOthercostsallowedbyMinnesotaStatutesCityofPriorLakeEconomicDevelopmentAuthorityTaxIncrementFinancingPolicy3
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 8A
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: TAX ABATEMENT INQUIRY
DISCUSSION: Introduction
The purpose of this agenda item is to discuss the EDA’s level of interest in supporting a potential
tax abatement request to assist with the development of a commercial building at the intersection
of CH21 and Duluth Avenue.
Current Circumstances
City staff has been contacted by a development group who is proposing to construct an approxi-
mate 11,700 SF building at the southwest corner of the CH21 / Duluth Ave. intersection. The
proposed development would provide office space for two current Prior Lake businesses, Olson
Dental and Crossroads Optometric, as well as creating a third tenant space which would be avail-
able for lease.
The developers have inquired into the availability of financial incentives in the form of Tax Abate-
ment to assist with the development costs. City staff recommended the development group re-
ceive some initial feedback from the EDA prior to the submitting a formal application and the
$5,000 application fee.
Conclusion
City staff completed a very preliminary tax abatement estimate and anticipates a tax abatement
of +/- $60,000 would be available, assuming a 15-year abatement term was approved.
An economic development TIF district is not an option for the City to consider in this case, as
increments from economic development districts may be used to assist limited types of business
facilities, such as: manufacturing, warehousing, research and development, telemarketing, and
tourism.
ISSUES: The EDA is not being asked to take any official action, rather to provide direction to the developer
and staff related to a potential application for Tax Abatement assistance. If the EDA is supportive,
the developer will likely apply for tax abatement assistance and city staff will work with Northland
Securities to process their application.
The EDA may wish to consider one of more of the following when considering whether to provide
the assistance:
1. Abatement only affects the city and not the school district nor the county.
2. The number of years of abatement and the amount of abatement per year are within the
city’s discretion but cannot exceed 15 years.
3. The property is in the Town Center Use District and because off-street parking stalls are
not required in the Town Center, the assumption is parking is a city responsibility. The
abatement could be considered the city’s contribution for parking or the abatement could
be used toward extraordinary development costs, such as soil corrections.
2
4. The proposed development may add traffic to the Arcadia/CR 21 intersection. This could
add to safety concerns or help address them by moving the intersection toward meeting
warrants for the installation of signals.
5. This project may spur additional development on the five acres to the west.
FINANCIAL
IMPACT:
Abatement does eliminate the city property taxes which pay for local services for the number of
years it is approved. On the other hand property taxes will be collected by the city for the remainder
of the life of the buildings.
ALTERNATIVES:
RECOMMENDED
MOTION:
ATTACHMENTS:
1. Direct the staff to advise the developer that the EDA supports abatement as proposed or as
may be amended by the EDA and recommend that an application be prepared.
2. Direct the staff to advise the developer that the EDA does not support abatement for this
project.
As determined by the EDA.
1. Proposed Site Plan & Elevation
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4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 20, 2017
AGENDA #: 8B
PREPARED BY: Casey McCabe, Community Development Specialist
AGENDA ITEM: CITY OF PRIOR LAKE PROMOTIONAL VIDEO
DISCUSSION: Introduction
The purpose of this agenda item is to review a promotional video prepared by the City of
Jordan and discuss whether the City of Prior Lake/EDA may be interested in producing a
similar video.
Current Circumstances
The City of Jordan, MN recently produced a promotional video which can be viewed at the
following link: https://www.facebook.com/CityofJordanMN/videos/616108005265978/
Conclusion
The video was posted on the City of Jordan Facebook page on March 1st and as of March
13th, the video had 49,000 views. The Jordan video appears to focus on attracting families to
their community. If the EDA sees value in the video the City of Prior Lake may wish to produce
a similar video or focus on commercial and industrial attraction.
ISSUES: If the EDA is interested in producing a similar video for the City of Prior Lake, the EDA may
wish to receive direction from the City Council and explore collaboration opportunities with the
Prior Lake Chamber, Scott County First Stop Shop, SMSC, RiverSouth or other local organi-
zation(s).
FINANCIAL
IMPACT:
The estimated cost of a similar video would be approximately $5,000. The professional ser-
vices portion of the EDA Budget or the EDA Reserve could be used to pay for this project.
ALTERNATIVES: 1. Provide direction to staff related to a City of Prior Lake /EDA promotional video.
2. Take no action.
RECOMMENDED
MOTION:
As determined by the EDA.