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HomeMy WebLinkAbout3 March 20 2017 EDA Minutes Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 Economic Development Authority Meeting Minutes March 20, 2017 1. CALL TO ORDER President Chromy called the meeting to order at 4:00 p.m. Present were Chromy, Sheehan-Kerber, Briggs and Braid. Also present were Executive Director Boyles, Community Development Specialist McCabe and Treasurer Uram. 2. APPROVAL OF AGENDA Chromy: proposed additional agenda items, including: 7.D. EDA Appointment Process Update; 7.E. City/County Joint Work Session Meeting Update; and 8.C. Appointment of Assistant Treasurer. MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE AGENDA WITH THE ADDITION OF ITEMS 7.D., 7.E. AND 8.C AS PROPOSED BY MR. CHROMY. Ayes by Chromy, Sheehan-Kerber, Briggs and Braid. The motion carried 4-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO APPROVE THE JANUARY 25, 2017 MEETING MINUTES. Ayes by Chromy, Sheehan-Kerber, Briggs and Braid. The motion carried 4-0. 4. CONSENT AGENDA A. EDA 2017 Revenue & Expenditure Report (2/28/17) B. EDAC Member Appointment MOTION BY BRIGGS, SECONDED BY BRAID TO ACCEPT THE EDA 2017 REVENUE AND EXPENDI- TURE REPORT THROUTH FEBRUARY 28, 2017, AND TO APPROVE A RESOLUTION APPOINTING RONALD MARTIN TO THE EDAC FOR A TERM OF MARCH 20, 2017 TO OCTOBER 31, 2019. Ayes by Chromy, Sheehan-Kerber, Briggs and Braid. The motion carried 4 -0. , 5. REMOVED CONSENT AGENDA ITEMS No items were removed from the Consent Agenda 6. PUBLIC HEARING No Public Hearings 7. OLD BUSINESS A. EDA 2016 Revenue & Expenditure Report (Y/E 12/31/16) McCabe; provided the EDA with a summary of the 2016 EDA revenues and expenditures. Mr. McCabe highlighted a special EDA tax levy of $155,000; 50% of the budget for personnel support for Community & Economic Development Director and Community Development Specialist; $27,650 for Technology Vil- lage; $15,925 of EDA reserves was allocated to balance the budget; the total 2016 EDA budget was $181,425; and the 2015 fiscal year ended with EDA reserves of $183,950. 2 Sheehan-Kerber: commented on the EDA’s previous discussion about additional funding to acquire prop- erty and summarized the process the EDA went through when considering property acquisitions in pre- vious years and the inability for the EDA to act quickly. Ms. Sheehan-Kerber recommended this as a potential topic for future joint meeting with City Council. Briggs: commented that previous EDA budgets do not provide the EDA with funds to be opportunistic and questioned if the budget reflected all that might be asked of the EDA. MOTION BY BRIGGS, SECONDED BY BRAID TO ACCEPT STAFF’S 2016 EDA REVENUE & EX- PENDITURE REPORT. Ayes by Chromy, Sheehan-Kerber, Briggs and Braid. The motion carried 4-0. B. EDA 2017 Budget – EDA Tax Levy McCabe; provided the EDA with a summary of the 2017 EDA Budget, highlighting: the EDA tax levy decreased from $155,000 to $140,000; revenues of $8,500 from Technology Village leases assum es 90% occupancy; use of EDA budget reserves of $9,825 were used to balance the budget compared to $15,925 of reserves in 2016; and $20,000 is budgeted for Professional Services. Mr. McCabe added that the Technology Village budget decreased from $27,650 in 2016 to $9,500 in 2017; assuming full rent is received during the year, this budget shows Technology Village expenditures matching revenue. MOTION BY BRIGGS, SECONDED BY BRAID TO ACCEPT STAFF’S EDA 2017 BUDGET REPORT. Ayes by Chromy, Sheehan-Kerber, Briggs and Braid. The motion carried 4-0. C. Schedule and Set Agenda for Joint City Council/EDA Meeting EDA Members: discussed potential topics for a joint City Council / EDA meeting. Chromy: commented that the Council has requested EDA review of specific items in the past and at times the Council has not accepted the EDA recommendation. A potential discussion topic may be related to what are the Council’s expectations of the EDA. Mr. Chromy added that the EDA functioned well when they had concrete projects and concrete goals, which the EDA has gotten away from in recent ye ars. Sheehan-Kerber: stated she would like to see the EDA as more proactive and less reactive. Briggs: suggested a topic related to the EDA’s role in finding partners for projects. EDA Members: appeared to have consensus that the p rimary focus of the joint meeting should be to gauge the EDA and Council’s support related to the use of incentives for development and redevelop- ment projects. Boyles: stated city staff will schedule the joint City Council / EDA meeting. D. EDA Appointment Process Update Boyles: informed the commissioners that the city received four applications for the vacant position on the EDA and the screening committee has narrowed the list of candidates to three. The three finalists will be interviewed by the City Council prior to the April 10th City Council meeting and the mayor will make a recommendation for the EDA appointment which will be voted on by the City Council at that meeting. EDA Members: recommended Mr. Chromy meet with the candidates for the EDA prior to their Counc il interview. 3 E. City/County Joint Work Session Meeting Update Briggs: summarized the recent City Council / County Board joint work session meeting related to the proposed traffic modifications in the Downtown Prior Lake area. Mr. Briggs informed the EDA that the City Council has authorized staff to issue a RFP to identify a civil engineer to provide experience and assistance to the City of Prior Lake related to the Hwy 13/CH21 intersection improvements and other proposed downtown traffic changes. Boyles: mentioned the City Council and County Board will have another joint work session on this topic on April 3rd. 8. NEW BUSINESS A. Tax Abatement Inquiry McCabe: informed the EDA that the City has received an inquiry into the potential use of tax abatement to assist a commercial development project at the intersection of CH21 and Duluth Ave. Mr. McCabe provided an overview of the proposed development and shared a project elevation and site plan with the commissioners. Mr. McCabe added that prior to accepting a tax abatement application and $5,000 fee, he recommended the applicant present their project to the EDA to gather feedback and gauge their support for a business incentive project. Matt Schafer was in attendance to answer questions about this project. Mr. Schafer highlighted the need for a robust downtown which capitalizes on the lake environment and identified grading and soils con- cerns on the property as well as the high-quality design materials which will have an impact on develop- ment costs. Mr. Schafer stated he and his partners have identified two local businesses who are estab- lished in the community and would remain in Prior Lake because of this development. EDA Members: discussed the tax abatement request and the SAC/WAC Deferral program that is avail- able. EDA Members expressed support for the abatement request for the three to four tenant building that is currently proposed. EDA members did not support the use of economic development incentives for future phases of development on this property. EDA Members: advised Mr. Schafer to move ahead with his application for tax abatement to assist with this downtown development project acknowledging that the city council is the final determiner for such requests. B. City of Prior Lake Promotional Video EDA Members: discussed a promotional video prepared by the City of Jordan, MN and supported the idea of a similar video for the City of Prior Lake. EDA members recommended the video be shared with the EDAC and gather their recommendations related to content and focus. C. Appointment of Assistant Treasurer Chromy: stated the EDA Assistant Treasurer position is now vacant with the resignati on of Community & Economic Development Director Rogness. MOTION BY BRIGGS, SECONDED BY BRAID to add the appointment of an Assistant Treasurer to the April EDA meeting agenda. Ayes by Chromy, Sheehan-Kerber, Briggs and Braid. The motion carried 4-0. 4 9. OTHER BUSINESS A. Commissioner Comments Chromy: recommended the commissioners discuss EDA goals during a future meeting. Briggs: is unable to attend the March 23rd EDAC meeting; Chromy will attend in his place. 10. ADJOURNMENT MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 6:05 p.m. ___________________________ Frank Boyles, Executive Director