HomeMy WebLinkAbout00 11 13 2017 EDA Agenda Packet FULL
Phone 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, November 13, 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\November 13, 2017
1. CALL TO ORDER
2. APPROVAL OF AGENDA
3. APPROVAL OF MEETING MINUTES
A. October 23, 2017
4. CONSENT AGENDA
A.
B.
EDA Revenue & Expenditure Report (10/31/17)
Development Update (10/31/2017)
5. REMOVED CONSENT AGENDA ITEMS
6. PUBLIC HEARINGS
A. No Public Hearings Scheduled
7. OLD BUSINESS
A.
B.
Downtown Redevelopment Discussion
CH21 Corridor Alternative Follow-Up (verbal report)
8. NEW BUSINESS
A.
B.
C.
D.
EDA 2017 Accomplishments & 2018 Goals
CH21 Corridor Project Business Impacts (verbal report)
Advisory Committee 2017 Accomplishments & 2018 Goals
Staff Updates (verbal report)
Commercial/Residential Property Listing
EDI Grant Application Follow-Up
Talk of the Town Follow-Up
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 October 23, 2017
1. CALL TO ORDER
President Chromy called the meeting to order at 4:00 p.m. Present were Chromy, Briggs, Braid, Sheehan-Kerber
and Boucher-Hoese. Also present were Executive Director Boyles, Community Development Director McCabe
and Planner Schwabe.
2. APPROVAL OF AGENDA
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE AGENDA AS PROPOSED. Ayes by Chromy,
Briggs, Braid, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0.
3. APPROVAL OF MEETING MINUTES
MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER, TO APPROVE THE SEPTEMBER 11, 2017
MEETING MINUTES. Ayes by Chromy, Briggs, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0.
4. CONSENT AGENDA
A. EDA 2017 Revenue & Expenditure Report (9/30/17)
B. Development Update (9/30/2017)
C. Advisory Committee Appointment – Business Engagement Committee
D. Advisory Committee Appointment – Technology Village Board of Directors
MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE TO APPROVE THE CONSENT AGENDA AS SUB-
MITTED. Ayes by Chromy, Briggs, Braid, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0.
BRIGGS stated that the candidates who came forward for the advisory committee position were of very high
quality which made the appointment decisions difficult.
5. REMOVED CONSENT AGENDA ITEMS
No items were removed from the Consent Agenda
6. PUBLIC HEARING
No Public Hearings
7. OLD BUSINESS
None
8. NEW BUSINESS A. Downtown Redevelopment Discussion
Community Development Director McCabe introduced Bill, Lori and Andrew Peterson. The Petersons re-
cently purchased the property at 16323 Main Ave. SE and are proposing to redevelop the property with an
approximate 3,500 sq. ft. restaurant named “PLate on Main” d.b.a. “PLate”. Bill Peterson complimented Di-
rector McCabe on his responsiveness as their first contact at the City and provided background information
on themselves and the project. The proposed restaurant is described as an upscale, American eatery with a
variety of dishes in an inviting, fine dining atmosphere.
BRIGGS commented that attracting residents from other communities to downtown Prior Lake is important
and he is appreciative that that is part of the proposals key objectives.
2
Bill Peterson stated that they would like the asset of the restaurant to improve the other assets of downtown.
Mr. and Mrs. Peterson indicated they would be 100% owners of the real estate and would own 35% of the
restaurant.
SHEEHAN-KERBER asked a question about the ownership of the remaining 65% of the restaurant.
Bill Peterson explained the breakdown of the proposed ownership.
Bill Peterson reviewed the proposed restaurant exterior elevations and interior layout renderings. Mr. Peter-
son discussed the need for a variance to the building height as the proposed building is approximately 18-
feet which does not meet the required minimum building height of 25 feet or 2-stories in downtown Prior Lake.
BRIGGS questioned the height of the building at the entrance.
Andrew Peterson responded to Mr. Briggs’ question and confirmed that the height of the proposed building
is 18 feet.
Bill Peterson reviewed the anticipated project costs including, but not limited to: site demolition, initial soil
corrections, Phase II soil correction work, building construction, sidewalk reconstruction, and exterior facade
requirements. Mr. Peterson shared photos of the conditions of the existing sidewalk and utilities and stated
that he is not looking for a finance plan, rather he would like the City to consider relief or assistance related
to the items discussed.
CHAIR CHROMY asked a question about the proposed timeline.
Bill Peterson stated that if everything moved along as planned, the final design, soliciting of bids and obtaining
permits would occur over the winter so that they could break ground on 4/1/2018 with an anticipated opening
date of 10/1/2018.
BOUCHER-HOESE requested information related to the proposed exterior building materials.
Bill and Andrew Peterson reviewed the different exterior options.
CHAIR CHROMY requested staff provide information at the next meeting regarding the types of assistance
the City has previously provided to similar development projects.
SHEEHAN-KERBER questioned if the proposed exterior materials meet the City’s requirements.
DIRECTOR MCCABE indicated that staff has not completed a review of all the proposed materials at this
time.
SHEEHAN-KERBER stated that another restaurant in town had difficulties with sound barrier and recom-
mended they consider that as they finalize their plans.
BRAID questioned how the costs to bury utilities were previously covered.
CITY MANAGER BOYLES stated that previous utility burial costs may have been covered with a combination
of assessments and TIF funds.
BRIGGS questioned staff about previous façade improvement programs.
3
CITY MANAGER BOYLES stated that historically, storefront façade improvement program costs were split
50/50 between the property owner and the City of Prior Lake, with the city providing a matching grant up to
$25,000 per property.
BRIGGS stated that he would love to see a building go in on the south side of CH 21 and that it could be a
catalyst for (re)development of other downtown properties. He indicated that the design of the building should
be consistent with the downtown area. He commented that he would be open to considering assisting with
the costs for soil corrections; however, he stated that he is concerned that some types of city assistance may
set a precedence.
Bill Peterson stated that they are taking a leap of faith to construct a restaurant along south Main Avenue and
he understands the City’s concern with precedence.
SHEEHAN-KERBER questioned whether the potential areas of improvements and work to redevelop the site
had a priority.
Bill Peterson responded that there is not a specific order to the areas in need of improvement.
BRAID thanked the Petersons for investing in our downtown and stated that he is in support of the sidewalk,
lighting, and façade assistance request.
CHAIR CHROMY thanked the Petersons for their investment.
EDA MEMBERS directed staff to provide a report to the EDA with additional information about potential areas
of assistance and possible funding sources at the November EDA meeting.
B. BEC ‘Talk of the Town’ Follow-Up
DIRECTOR MCCABE reviewed the Talk of the Town event. He stated the BEC will be reviewing the com-
ments at their next meeting and will be attempting to identify action items for the committee to work on in
2018.
BRIGGS stated that it was a successful event with a strong downtown business presence.
Consensus from all in attendance that the event was a success and was a great opportunity to obtain feed-
back on the issues facing businesses today.
C. CH21 Alternative Discussion
DIRECTOR MCCABE distributed the Local Transportation Assessment presentation, prepared by SRF.
CHAIR CHROMY stated that feedback he has received indicates the downtown business owners appear to
prefer alternative B-1.
BOUCHER-HOESE commented that the dialogue she had at the Talk of the Town event was heavily weighted
on alternative B-1 with the justification of pedestrian safety.
CHAIR CHROMY stated that the EDA should consider the economic impacts of the alternatives.
BRIGGS stated that the signal alternative at Main Avenue is viewed by many as a similar alternative to the
current four-way stop; however, a signal performs much differently than a four-way stop.
SHEEHAN-KERBER recommended a public relations campaign should be initiated if the city and county
ultimately select an alternative which does not include a signal.
4
CHAIR CHROMY stated he views roundabouts as an opportunity to control the speed of vehicles through
downtown.
BRIGGS shared that experts have studied the vehicle flow, turning opportunities, etc. but no one has done a
study on the near-term or long-term economic impacts of the alternatives, including build-out time. The pro-
ject management team is currently working on this information and will be presenting to the City Council.
SHEEHAN-KERBER commented that New Prague has roundabouts in their downtown area and is question-
ing whether that could be used as a benchmark to determine potential impacts.
BRAID commented that the fact that we are having this conversation is a feat in itself. He stated that the
traffic counts in Lakeville at 50/60 with their two-lane roundabout may be comparable.
DIRECTOR MCCABE stated that the roundabouts in Mankato along CH22 near the mall may be comparable
regarding traffic counts.
BRAID stated that he feels the EDA should make a recommendation to the City Council on the EDA’s pre-
ferred alternative.
SHEEHAN-KERBER also felt the EDA should make a recommendation to the City Council.
BOUCHER-HOESE questioned what impacts the alternatives would have on the Pleasant Street area.
BRIGGS responded that the alternatives should accommodate the ¾ access from TH13 to Pleasant St. and
reviewed the proposed alternatives.
BRAID stated that from an economic standpoint, the preferred alternative should consider whether Arcadia
and Duluth should serve as a primary intersection and where the future growth is anticipated.
BRIGGS discussed the full access points to the downtown area.
CHROMY posed the question of which alternatives may result in more businesses in downtown.
CITY MANAGER BOYLES stated that businesses typically prefer direct access.
CHAIR CHROMY stated that the construction impact on downtown businesses will be significant.
BRIGGS stated that the Project Management Team (PMT) will bring forward what they believe to be the best
solution to the City Council for municipal consent on November 6th.
SHEEHAN-KERBER stated that perhaps the EDA should develop pros/cons bullet point list for the alterna-
tives for the Council in lieu of selecting an alternative.
BRIGGS stated that this a minimum of a 25-year solution, but ideally more of a 40-year solution. Economic
viability of the downtown should be considered by the EDA.
CHAIR CHROMY stated that a bulleted list could be provided to the PMT, rather than the City Council.
DIRECTOR MCCABE questioned the economic impacts of the alternatives for other business areas in Prior
Lake.
5
BOYLES stated that based on the EDA’s conversation, he is hearing support of alternatives B-1 and A-2.
CHAIR CHROMY commented that a primary intersection at Arcadia would provide better access to downtown
parking lots.
BOUCHER-HOESE: stated that if the A-2 alternative is ultimately chosen, she supports a full ¾ access to the
north and south at Main Ave.
SHEEHAN-KERBER recommended the planning committee identify routes (detours) during the construction
period to ensure businesses can still have a flow of traffic to support their business and whichever alternative
is chosen, Ms. Sheehan-Kerber recommended that the City invite Downtown Businesses to a meeting to
outline the reasoning for solution chosen.
EDA MEMBERS directed staff to provide a copy of the draft EDA meeting notes to the PMT.
D. CH21 Corridor Project Business Impacts
Due to a lack of time, this item was deferred to the next regular meeting.
E. 2018 EDI Grant Opportunity
DIRECTOR MCCABE: introduced the agenda item and provided an overview of the Scott County CDA Eco-
nomic Development Incentive grant opportunity and summarized the two different grant categories; Corridor
Readiness and Technical Assistance. Mr. McCabe provided a few potential options for grants and explained
the application process and timing.
CHAIR CHROMY: felt and updated market study for the Jeffers Pond area may be a worthy application if the
developer is willing to participate in the cost. Mr. Chromy also suggested a study of the CH21/Revere Inter-
section in the Deerfield Business Park area, a study of commercial opportunities along the CH21 corridor
beyond the downtown through the lake and beyond and a Downtown South beautification project as options.
EDA MEMBERS provided direction to staff to pursue a grant application to assist with the costs of a study to
stimulate development in the Jeffers Pond area, if the property owners were interested in participating.
F. EDA 2017 Accomplishments & 2018 Goals
Due to lack of time, this item was deferred to the next regular meeting.
9. OTHER BUSINESS
A. Commissioner Comments
SHEEHAN-KERBER stated she will not be in attendance at the November 13, 2017 meeting.
10. ADJOURNMENT
MOTION BY BRAID, SECONDED BY BOUCHER-HOESE TO ADJOURN THE MEETING. With all in favor, the
meeting adjourned at 6:09 p.m.
___________________________
Frank Boyles, Executive Director
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: November 13, 2017
AGENDA #: 4A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: EDA REVENUE & EXPENDITURE REPORT (10/31/17)
DISCUSSION: Introduction
The purpose of this consent agenda item is to review the 2017 Revenue & Expendi-
ture Report for the EDA through October 31, 2017.
History
EDA Commissioners requested monthly financial reports at each meeting. This al-
lows the EDA to view revenues and expenditures on a frequent basis.
Current Circumstances
There was no unanticipated revenue or expenditure activity in October.
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 monthly. Given the overall lack of financial activity, the EDA may wish
to consider whether Authority and staff time might be best served by preparing these
reports less frequently or not at all in 2018.
FINANCIAL
IMPACT:
None.
ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA 2017 Rev-
enue & Expenditure Report.
2. Remove this item from the consent agenda for additional discussion.
RECOMMENDED
MOTION:
Alternative #1
ATTACHMENTS: 1. EDA 2017 Revenue & Expenditure Report
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 1/2Page
:
11/02/2017 01:07 PM
User: cmccabe
DB: Prior Lake PERIOD ENDING 10/31/2017
% BDGT
USED
AVAILABLE
BALANCE
ACTIVITY FOR
MONTH
10/31/2017
YTD BALANCE
10/31/2017
2017
AMENDED BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Revenues
Dept 00000.00-GENERAL
51.41 68,031.43 0.00 71,968.57 140,000.00 Current Property Taxes - General Purpos240-00000.00-31010.00
0.00 0.00 0.00 0.00 0.00 Market Value Credit Aid240-00000.00-33423.00
0.00 0.00 0.00 0.00 0.00 Administrative Charges240-00000.00-34111.00
83.08 422.96 8.53 2,077.04 2,500.00 Interest Earnings240-00000.00-36210.00
100.00 457.90 0.00 (457.90)0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00
0.00 0.00 0.00 0.00 0.00 Transfer from Other Funds240-00000.00-39203.00
51.64 68,912.29 8.53 73,587.71 142,500.00 Total Dept 00000.00-GENERAL
Dept 46500.00-ECONOMIC DEVELOPMENT
0.00 0.00 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14
100.00 (5,000.00)0.00 5,000.00 0.00 Prof Service Fee Deposit - EDA240-46500.00-36220.14
100.00 (5,000.00)0.00 5,000.00 0.00 Total Dept 46500.00-ECONOMIC DEVELOPMENT
Dept 46503.00-TECH VILLAGE INCUBATOR
84.77 1,294.14 1,163.34 7,205.86 8,500.00 Facility Rental - EDA240-46503.00-34760.02
84.77 1,294.14 1,163.34 7,205.86 8,500.00 Total Dept 46503.00-TECH VILLAGE INCUBATOR
56.82 65,206.43 1,171.87 85,793.57 151,000.00 TOTAL REVENUES
Expenditures
Dept 46500.00-ECONOMIC DEVELOPMENT
56.96 41,474.87 3,309.24 54,898.13 96,373.00 Wages - Full Time240-46500.00-51100.01
68.33 950.00 250.00 2,050.00 3,000.00 Wages - Commissioners240-46500.00-51100.05
100.00 (1,085.14)0.00 1,085.14 0.00 Overtime - Full Time240-46500.00-51110.01
0.00 0.00 0.00 0.00 0.00 Sick Leave - Buy Down240-46500.00-51208.01
0.00 0.00 0.00 0.00 0.00 Accrued Comp Time240-46500.00-51301.00
57.92 199.44 16.55 274.56 474.00 Compensated Absences240-46500.00-51400.00
57.88 2,556.48 220.86 3,512.52 6,069.00 Social Security Contributions240-46500.00-51450.00
57.89 597.51 51.66 821.49 1,419.00 Medicare Contributions240-46500.00-51451.00
58.51 2,977.26 248.19 4,198.74 7,176.00 PERA Contributions240-46500.00-51460.00
51.25 4,543.35 305.74 4,775.65 9,319.00 Health Insurance240-46500.00-51470.00
55.73 106.25 6.25 133.75 240.00 Retiree HCSP Contributions240-46500.00-51472.00
52.08 230.00 10.00 250.00 480.00 Dental Insurance240-46500.00-51473.00
58.81 25.95 2.63 37.05 63.00 Life Insurance240-46500.00-51474.00
82.24 76.00 88.00 352.00 428.00 Workers Compensation Insurance240-46500.00-51477.00
0.00 250.00 0.00 0.00 250.00 Office Supplies240-46500.00-52010.00
72.00 700.00 0.00 1,800.00 2,500.00 Legal Services240-46500.00-53020.00
0.00 20,000.00 0.00 0.00 20,000.00 Professional Services - General240-46500.00-53100.80
0.00 250.00 0.00 0.00 250.00 Telecommunications240-46500.00-53210.00
14.00 860.00 0.00 140.00 1,000.00 Training and Employee Development240-46500.00-53310.10
0.00 500.00 0.00 0.00 500.00 Required Notice Publication240-46500.00-53510.00
0.00 750.00 0.00 0.00 750.00 Memberships and Subscriptions240-46500.00-54310.00
0.00 1,034.00 0.00 0.00 1,034.00 Miscellaneous Expense240-46500.00-54320.00
49.12 76,995.97 4,509.12 74,329.03 151,325.00 Total Dept 46500.00-ECONOMIC DEVELOPMENT
Dept 46503.00-TECH VILLAGE INCUBATOR
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page
:
11/02/2017 01:07 PM
User: cmccabe
DB: Prior Lake PERIOD ENDING 10/31/2017
% BDGT
USED
AVAILABLE
BALANCE
ACTIVITY FOR
MONTH
10/31/2017
YTD BALANCE
10/31/2017
2017
AMENDED BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Expenditures
4.12 239.71 0.00 10.29 250.00 Office Supplies240-46503.00-52010.00
0.00 500.00 0.00 0.00 500.00 Small Equipment - General240-46503.00-52400.10
8.00 460.00 0.00 40.00 500.00 Legal Services240-46503.00-53020.00
0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60
24.38 1,512.33 142.33 487.67 2,000.00 Telecommunications240-46503.00-53210.00
0.00 2,250.00 0.00 0.00 2,250.00 Rent Subsidies240-46503.00-54095.00
0.00 2,500.00 0.00 0.00 2,500.00 Business Assistance240-46503.00-54100.00
67.50 325.00 0.00 675.00 1,000.00 Memberships and Subscriptions240-46503.00-54310.00
23.84 380.79 51.25 119.21 500.00 Miscellaneous Expense240-46503.00-54320.00
0.00 0.00 0.00 0.00 0.00 Building & Building Improvements240-46503.00-55520.00
0.00 0.00 0.00 0.00 0.00 Furniture and Office Equipment240-46503.00-55560.00
0.00 0.00 0.00 0.00 0.00 Machinery and Equipment240-46503.00-55570.00
14.02 8,167.83 193.58 1,332.17 9,500.00 Total Dept 46503.00-TECH VILLAGE INCUBATOR
47.05 85,163.80 4,702.70 75,661.20 160,825.00 TOTAL EXPENDITURES
103.13 (19,957.37)(3,530.83)10,132.37 (9,825.00)NET OF REVENUES & EXPENDITURES
47.05 85,163.80 4,702.70 75,661.20 160,825.00 TOTAL EXPENDITURES
56.82 65,206.43 1,171.87 85,793.57 151,000.00 TOTAL REVENUES
Fund 240 - EDA SPECIAL REVENUE FUND:
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: November 13, 2017
AGENDA #: 4B
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM:
DEVELOPMENT UPDATE (10/31/2017)
DISCUSSION:
Introduction
The purpose of this consent agenda item is to review the residential and com-
mercial development update as of October 31, 2017.
History
EDA Commissioners requested an update of residential and commercial activity
at each meeting.
Conclusion
The attached memorandum provides a summary of residential and commercial
development in the City of Prior Lake.
ALTERNATIVES:
RECOMMENDED
MOTION
ATTACHMENT:
1. Motion and a second, under the Consent Agenda, to accept the Develop-
ment Update.
2. Remove this item from the consent agenda for additional discussion.
Alternative No. 1.
1. Development Update
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
Memo
Date: November 2, 2017
To: City of Prior Lake Economic Development Authority
From: Casey McCabe, Community Development Director
Subject: Residential & Commercial Activity Update
Below is an update of residential and commercial development in the City of Prior Lake as of October 31, 2017.
Name Address Type
(New/Relocation/Expansion)
Previous
Tenant/Owner
gg Boutique 16180 Hastings Ave. SE Relocated Business Giggle Gals
The Magnolia Shop 4773 Dakota St. SE New Business gg Boutique
Trademark Title Services 16268 Eagle Creek Ave. SE New Business ReMax
Olive Moon 4775 Dakota St. SE Relocated Business Finder's Fee
Whitmer Crafts 4646 Colorado St. SE New Business Vacant Lease Space
Canvas Tattoo 6880 Boudin St. NE Relocated Business Verizon
Edward Jones - Scott Pierce 16154 Main Ave. SE, Suite 110B Relocated Business Wensmann Office - Lakefront Plaza
Edward Jones - Christy McCoy 4719 Park Nicollet Ave. Suite 260 New Business/Tenant Build-Out Vacant Lease Space
Luxury Laser Edu 14070 Commerce Ave. NE Ste. 200 New Business Kids Talk Childrens Therapy
Boathouse Brothers Brewing 16211 Main Ave. SE New Business/Major Remodel Memories on Main
Sweet Nautical 16228 Main Ave. SE, Ste 101 New Business Lakes Area Realty
Blahnik Law Office 4617 Colorado St. SE Relocated Business/Major Addition Former SF Residential
Fountain Hills Self-Storage 4400 Fountain Hills Dr. NE New Construction Vacant Land
Prior Lake Revival SW corner of Duluth Ave/CH21 New Construction Vacant Land
SDDI Sign Systems 5702 Graystone Ct. SE New Construction Vacant Land
Advantage Chiropractic 16197 Main Ave. SE New Business Prior Lake Spine
Port City Bakery 5832 Industrial Lane SE New Business/Major Addition Triple Play (Building Add'n)
Universal Motors 16720 Welcome Ave. SE New Construction Universal Motors (2nd Bldg.)
Home Time Real Estate 16154 Main Ave. SE, Suite 110C Relocated Business/Tenant Build-Out Wensmann Office (Lakefront Plaza)
Bongo's Closet 15981 Jordan Ave. Suite 2 New Business Vacant
Pure Joy Pilates 16186 Main Ave. SE New Business Vacant
Kumon Math & Reading Center 14180 Commerce Ave NE, Suite 104 New Business Indigital
2017 Prior Lake Commercial Activity
Number of
Permits
Declared
Value
Number of
Permits
Declared
Value
Number of Permits
% Increase /
(% Decrease)
Declared
Value
% Increase /
(% Decrease)
Single Family Dwellings 65 $22,828,000.00 92 $31,538,000.00 (29.35)(27.62)
Townhouses (# units)4 $736,000.00 4 $676,000.00 0.00 8.88
Multiple Units 1 (68 units)$8,787,000.00 2 (222 units)$28,672,000.00 (50.00)69.35
New
Commercial Industrial & Commercial 11 $13,267,500.00 3 $5,620,000.00 266.67 136.08
Residential 291 $2,125,400.00 618 $4,393,200.00 (52.91)(51.62)
Industrial & Commercial 22 $1,043,500.00 13 $263,000.00 69.23 296.77
Mechanical 547 $0.00 625 $0.00 (12.48)n/a
Mechanical (SF & TH)260 $0.00 383 $0.00 (32.11)n/a
TOTALS 1200 $48,787,400.00 1741 $71,162,200.00 (31.07)(31.44)
Increase / (Decrease)
Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate
tt Mechanical (SF & TH) permits include required plumbing, heating, sewer and water and fireplace permits for new single family residences.
They are flat-rate permit fees.
2017 Year to Date 2016 Year to Date
New
Residential
Additions
and
Alterations
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: November 13, 2017
AGENDA #: 7A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: DOWNTOWN REDEVELOPMENT DISCUSSION
DISCUSSION: Introduction
The purpose of this agenda item is to consider the most appropriate types and amounts of assis-
tance to recommend to the city council in support of a new downtown restaurant proposal.
History
The EDA met with Lori & Bill Peterson and Andrew Peterson during their October 23, 2017 meeting
to discuss costs related to the demolition of a single-family home at 16323 Main Avenue SE and
construction of an approximate 3,500 SF restaurant on the property. The Peterson’s shared their
vision for the restaurant, highlighted the potential value of their investment in the downtown area
and the entire community and reviewed the project costs and gap between the actual construction
costs and their initial budget. The EDA provided direction to staff to prepare a report for the EDA’s
November meeting with additional information about potential areas of assistance and possible
funding sources.
Current Circumstances
Staff has identified areas where the City of Prior Lake can assist with the redevelopment costs.
Two funding sources have been identified; the TIF District 1-1 funds and EDA Reserve funds. The
TIF 1-1 district was modified by the City Council in August 2012. As part of the modification, the
City identified 24 parcels within the boundaries of Municipal Development District No. 1 where the
city could utilize tax increment funds from TIF District 1-1 to assist with redevelopment within the
Development District. The property located at 16323 Main Avenue SE was included among the
24 identified parcels. Eligible uses of the tax increment funds include, property acquisition; build-
ing demolition; site cleanup; and/or public infrastructure. The approximate balance of the TIF 1-1
fund is $75,000.
The creation of a new tax increment district for this project is not recommended for two reasons:1.)
The magnitude of the project is such that the increment created will not provide significant financial
leverage. 2.) There are other more appropriate financing sources.
Staff has identified the following opportunities to assist this downtown redevelopment project. The
costs identified are supported by estimates provided by the property owner or city staff.
Demolition of residential home ($27,206)
It is well known that redevelopment entails greater expense than green development and
demolition expenses are a primary reason. City staff recommends the City of Prior Lake assist
the redevelopment project by providing funds to demolish the current single-family home. It is
reasonable to assume that the house contains asbestos which will be eliminated by demoli-
tion. Residential homes in the downtown do not facilitate redevelopment or highest and best
2
use of the property so whether or not the project moves forward, demolition of the house is
advantageous. The cost includes the demolition bid ($20,706), building survey to identify po-
tential hazardous materials ($1,500) and assumed asbestos abatement based on a prelimi-
nary site inspection (cost unknown; estimated at $5,000).
Soil corrections ($20,733)
Staff would recommend the city assist with the costs of soil corrections, including the removal
of current soils and replacement with clean soils, as initial soil studies have identified a need.
Soils at certain locations in Prior Lake are poor for building. The city has assisted in this regard
for other projects.
Storefront Façade Grant ($25,000)
The property owner has indicated a desire to use high quality exterior building materials; how-
ever, exterior materials which meet the City’s downtown design guidelines exceed the funding
amount the property owner has budgeted for façade materials. City staff proposes the City of
Prior Lake provide a $25,000 storefront façade grant, similar to the program previously offered
in the downtown, which would be matched by a minimum of $25,000 from the property owner.
This proposal is consistent with previous city action for downtown businesses.
Sidewalk & Curb Concrete ($20,761)
City staff would recommend assisting the redevelopment project by eliminating the two curb
cuts along Main Avenue, creating a new curb cut along Pleasant Street and replacing the
sidewalk located adjacent to the redevelopment parcel. This action is both aesthetic, en-
hances the public safety and reduces city liability.
Street Lighting ($18,000)
Staff is proposing additional lighting for sidewalks and street parking at the corner of Main
Avenue and Pleasant Avenue and along Pleasant Avenue; exact locations to be determined.
The lighting proposed would be Prior Lake’s decorative downtown light poles. This action is
also public safety and aesthetic. It is unreasonable that a new project be served by old worn
out lighting.
Conclusion
To summarize, it is staff’s position that the following unique project costs are eligible for assistance
and should be considered by the EDA.
Project Amount Funding Source
Demolition $27,206 TIF 1-1
Soil Corrections $20,733 TIF 1-1
Storefront Façade $25,000 TIF 1-1
Sidewalk & Curb Concrete $20,761 EDA Reserves
Street Lighting $18,000 EDA Reserves
TOTAL $111,700
ISSUES:
This year’s July community survey clearly indicated a desire for more restaurants in Prior Lake.
This project is a great opportunity to take a step forward in this direction. Survey respondents also
expressed support for the city offering financial incentives to accomplish our development and
redevelopment objectives.
3
The actual gap in the petitioner’s development proposal is considerably more than the amounts
the staff is proposing. However, the precedence for the incentives proposed are both well estab-
lished and well-reasoned. The petitioner also stated that there were project budget areas where
he believes they can reduce costs.
The addition of the restaurant certainly will increase parking competition downtown. We believe
the 15 public stalls across the street, the public parking on Pleasant Street and the publicly owned
lot on Colorado Street can help to mitigate this challenge.
Ideally, the city would be doing a comprehensive streetscaping program for the entire south down-
town area in conjunction with this project; however, there are too many unknowns now nor has a
financing mechanism been identified. This project will act as motivation to the city (and perhaps
other property owners) to begin preparation for such a project. Accordingly, the staff has included
the planning for such an effort in the 2018 EDA Goals.
FINANCIAL
IMPACT:
Costs related to the proposed assistance package would impact the EDA reserve fund and would
utilize the majority of the TIF 1-1 district fund balance. The EDA may wish to consider recom-
mending approval of some, or all, of the costs identified, recommending additional assistance or
identifying a maximum dollar amount to assist with eligible project costs.
ALTERNATIVES: 1. Motion and second to recommend the City Council approve the redevelopment assistance
package as proposed, or as may be further amended by the EDA.
2. Motion and Second to recommend the City of Prior Lake does not participate in this redevel-
opment project with financial assistance.
3. Provide direction to staff and continue discussion at a future meeting.
RECOMMENDED
MOTION:
Alternative # 1
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: November 13, 2017
AGENDA #: 8A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: EDA 2017 ACCOMPLISHMENTS AND 2018 GOALS
DISCUSSION: Introduction
The City Council has invited all advisory committee members, including the EDA, to a City Council
work session on Monday, November 20th at 5:00 p.m. The purpose of the work session is to allow
all advisory committees an opportunity to present the City Council with a report of 2017 accom-
plishments and 2018 goals. The work session also provides an opportunity for advisory commit-
tees to hear accomplishments from other committees as well as what the other committees will be
working on in 2018 to determine if there are any collaboration opportunities.
History
The EDA has previously provided similar annual reports to the City Council. The City Council has
asked that all committees provide three accomplishments for 2017 and three goals for 2018.
Conclusion
Below are the 2017 EDA Goals, as revised by the EDA on May 15, 2017. Staff has proposed
2017 accomplishments and 2018 goals for EDA review and discussion. Members should discuss
the accomplishments and goals below and amend or substitute additional topics as desired.
2017 EDA Goals
Continue to guide the Economic Development Advisory Committee (now Business Engage-
ment Committee) and support the Technology Village Board of Directors as they implement
the recommendations of the Technology Village program analysis and expansion plans, in-
cluding expansion opportunities within Scott County.
Make recommendations and provide strong input to the Prior Lake City Council and Scott
County Board related to proposed improvements to the CH21 road corridor, specifically CH82
to Franklin Trail, as it relates to potential impacts or benefits on economic development and
redevelopment activities.
Establish a process and plan to target resources for economic opportunities that provide sig-
nificant benefits to Prior Lake, including those that may include property acquisition and direct
support to commercial and industrial development. Provide a graphic showing the city owned
downtown properties and their usefulness for economic development and redevelopment ac-
tivities and identify additional properties for strategic acquisition within the five commercial
areas identified by the EDAC/BEC; including: Deerfield/Welcome; Downtown; Commerce Av-
enue; Gateway; and South Lake Village.
Conduct a meeting with the Scott County CDA First Stop Shop for identifying reciprocal goals.
Conduct an annual meeting with the Scott County CDA First Stop Shop, the Prior Lake City
Council and the Prior Lake Planning Commission.
2
Economic Development Authority (EDA) – 2017 Accomplishments (Proposed)
Developed and maintained an available commercial property inventory on city website.
Held a joint City Council and EDA meeting related to the use of business incentives.
Held a joint meeting with the Planning Commission.
The EDA invested significant time in the review of the proposed TH13/CH21 alternatives in
the Downtown Prior Lake area and communicating its deliberations to the PMT.
Supported the BEC with review and feedback related to the Commercial Area Liaison program
visits.
Participated in the BEC Talk of the Town event with Prior Lake business owners to share
accomplishments, gather suggestions for improvements and review the proposed TH13/CH21
intersection improvement alternatives.
Assisted the Planning Commission and city staff in the review and update of the Land Use
and Housing chapters of the 2040 Comprehensive Plan update.
Economic Development Authority (EDA) – 2018 Goals (Proposed)
Continue to guide the Business Engagement Committee and support the Technology Village
Board of Directors as they implement the recommendations of the phase II.4 Technology Vil-
lage Business Accelerator Plan, including expansion opportunities within Scott County.
Work with downtown stakeholders (residents, current and potential business owners, etc.)
toward an integrated construction and financing plan for streetscaping and building construc-
tion/remodeling to facilitate future downtown development.
Explore opportunities to identify, assist and encourage commercial and industrial develop-
ment in the Jeffers Pond PUD, along the CH21 and CH42 commercial corridors and other
areas of the community.
Establish a process and plan to target resources for economic opportunities that provide sig-
nificant benefits to Prior Lake, including those that may include property acquisition and direct
support to commercial and industrial development.
Conduct an annual meeting with the Scott County CDA First Stop Shop, the Prior Lake City
Council and the Prior Lake Planning Commission for identifying reciprocal goals.
ISSUES: EDA members should identify accomplishments for 2017, goals for 2018, discuss what information
should be included in the presentation and which member(s) of the EDA are available to attend
and present the information at the November 20th meeting. The EDA is generally limited to three
accomplishments and three goals. The presentation at the work session will need to be no longer
than ten minutes.
FINANCIAL
IMPACT:
Some of the EDA goals may have financial impacts in 2018.
ALTERNATIVES: 1. Motion and second to approve the EDA 2017 accomplishments and 2018 goals as proposed.
2. Motion and second to approve the EDA 2017 accomplishments and 2018 goals with amend-
ments. RECOMMENDED MOTION: Alternative # 1
(This must be approved on 11/13/17 to be presented at the November 20th Work Session)
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: November 13, 2017 AGENDA #: 8C PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: ADVISORY COMMITTEE 2017 ACCOMPLISHMENTS & 2018 GOALS DISCUSSION: Introduction
The City Council has invited all advisory committee members to a City Council work session on
Monday, November 20th at 5:00 p.m. The purpose of the work session is to allow all advisory
committees an opportunity to present the City Council with a report of 2017 accomplishments and
2018 goals.
Current Circumstances
Below are the 2017 accomplishments and 2018 goals for the Technology Village Board of Direc-
tors and the Business Engagement Committee for EDA review and approval.
Technology Village Board of Directors - 2017 Accomplishments
Continue to implement the recommendations of the Technology Village Phase III Program
Analysis, primarily related to program expansion within Scott County.
• Established a partnership with FSS to expand the business accelerator business pro-
gram through education and direct marketing to Scott County Cities
• Half-time program director hired by FSS; housed within the Technology Village
• Secured two new BOD members
Identify creative approaches to promote the Technology Village program and its participant
businesses
• Created a Marketing Work Group which worked with DCTC to develop new direct
mail pieces and communication branding posted via social media
• Fast Track Business Challenge (March-October) focused on promoting startup com-
panies to fill a gap within Scott County identified by the Maxfield Research & Con-
sulting Report
• TVBA website enhancements including updated bios, news and addition of a ‘Call
Back’ button
• Educational programs for participants and business community. Topics included ac-
counting and taxes, the power of smart marketing and small business finance.
Identify additional program participants, both virtual and physical; to increase the number of
Technology Village related employees working in Prior Lake.
• Started with 5 participants and ended with 6 as of November 2017; 5 program inquir-
ies
• Total number of TVBA related employees increased from 25 to 32
• 2 new Virtual Participants
• 100% TVBA leasable space occupied
• Increased our new user website views by 40-50%
2
Technology Village Board of Directors – 2018 Goals
Continue to implement the recommendations of the Technology Village Phase III Program
Analysis to expand the TVBA Virtual Program into other Scott County Cities with FSS and
PL TVBOD support.
Create a Business Plan which identifies the specific tasks necessary to secure funding
and/or sources of funds to support Scott County program expansion.
Participate in the second annual Scott County FAST-TRACK Business Challenge.
Identify additional program participants, both virtual and physical; to increase the number of
TVBA related employees working in Scott County.
Business Engagement Committee – 2017 Accomplishments
Continued to establish the Commercial Area Liaison Program through communications with
business owners.
Created an Outreach & Marketing Subcommittee of BEC members to plan the Talk of the
Town event and explore opportunities to utilize social media and other approaches to com-
municate with business owners. This committee was instrumental in the rebranding of the
committee from EDAC to Business Engagement Committee.
Hosted a very successful ‘Talk of the Town’ event which provided an opportunity for business
leaders, property owners and developers to gather with local elected and appointed officials
to share opportunities, express concerns or offer ideas to make Prior Lake a stronger business
community.
Business Engagement Committee – 2018 Goals
Utilize the Outreach & Marketing Subcommittee to promote the business climate, collaborate
with businesses and business organizations with the use of technology and social media.
Establish a business mentorship program.
Work with the EDA to develop a website and social media strategy dedicated to promotion of
economic development successes and opportunities in Prior Lake and to highlight each com-
mercial liaison area.
Evaluate and respond to business owner comments received at the Talk of the Town event.
ISSUES: Staff wanted to provide the advisory committee accomplishments and goals for EDA review before
they are presented to the City Council on November 20th.
FINANCIAL
IMPACT:
No financial impact directly related to the accomplishments and goals.
ALTERNATIVES: 1. Motion and second to approve the proposed Technology Village Board of Directors and Busi-
ness Engagement Committee 2017 Accomplishments and 2018 Goals as proposed.
2. Motion and second to approve the proposed Technology Village Board of Directors and Busi-
ness Engagement Committee 2017 Accomplishments and 2018 Goals with amendments.
RECOMMENDED MOTION: Alternative # 1