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HomeMy WebLinkAbout01 25 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 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. 4. CONSENT AGENDA None , 5. REMOVED CONSENT AGENDA ITEMS No items were removed from the Consent Agenda 6. PUBLIC HEARING No Public Hearings 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 2 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 history, 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 Te chnology Village Lease Agreement which have been recommended by the Technology Village Board of Directors and include: 1) elimination 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 3 ‘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