Loading...
HomeMy WebLinkAbout04 30 2018 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 SPECIAL MEETING AGENDA Monday, April 30, 2018 – 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\2018\April 30, 2018 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. None 4. CONSENT AGENDA A. None 5. REMOVED CONSENT AGENDA ITEMS 6. PUBLIC HEARINGS A. No Public Hearings Scheduled 7. OLD BUSINESS A. None 8. NEW BUSINESS A. Consider Approval of the EDA 2018 Business Plan and Funding Proposal 9. OTHER BUSINESS A. B. Staff Updates (i) MN Citizens for the Arts Speaker – Attendant Discussion (ii) EDA/BEC Joint Work Session – Monday, June 11, 2018 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” 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: APRIL 30, 2018 AGENDA #: 8A PREPARED BY: PRESENTED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR CASEY MCCABE AGENDA ITEM: CONSIDER APPROVAL OF THE EDA 2018 BUSINESS PLAN AND FUNDING PROPOSAL DISCUSSION: Introduction The purpose of this agenda item is to review and approve the EDA 2018 Busi- ness Plan and funding proposal which is attached to this agenda report. Three actions are required both by the EDA and City Council: 1. Approval of the 2018 EDA Business Plan; 2. Approval of an amendment to the EDA Enabling Resolu- tion; 3. Approval of a resolution effectuating the transfer of funds from the general fund reserve to the EDA Reserve. History The EDA and City Council held a joint work session on Monday, April 16th. Dur- ing the work session the EDA requested that a funding mechanism be created which would allow for the EDA to request and the City Council to approve peri- odic allocations from the Prior Lake General Fund (Fund 101) to the EDA Special Revenue Fund (Fund 240). In addition to the funding request, the EDA also requested the City Council au- thorize the EDA to unilaterally expend funds so allocated, provided that the pur- pose is consistent with the approved EDA Business Plan. Current Circumstances The EDA received direction from the City Council to prepare a document that identifies how additional funding could be requested, approved and used to achieve a greater economic development impact in the community than existing resources allow. Staff has prepared a draft Business Plan for EDA review that identifies the EDA’s goals and initiatives (see pages 3 and 7 particularly). The intent is to update the Business Plan annually for City Council review and approval, so the EDA can be assured that it is expending funds on appropriate city initiatives. Following approval of the Business Plan, as proposed or as amended, staff will present the plan to the City Council along with a request for approval of a reso- lution which would: 1) transfer additional funding into the EDA reserve fund and 2) provide the EDA with the authority to utilize funds within the EDA reserve funds to complete the initiatives identified in the plan. A draft City Council reso- lution is attached for EDA review. 2 To receive authority to expend EDA Special Revenue Funds without City Council approval in each case, amendments to the EDA Enabling Resolution will be re- quired. A public hearing must be held by the City Council to amend the EDA Enabling Resolution, which is proposed by the addition of 10C to the enabling resolution. Due to the public notification requirements for a public hearing, council action on this request cannot occur until May 21, 2018. A public hearing notice was sent to the Prior Lake American on April 23rd. This notice must be published in the newspaper twice (April 28 and May 5) prior to the Public Hearing. Conclusion On May 21st the City Council will consider a request from the EDA to approve two resolutions. The first request will follow a public hearing to consider approval of resolution amending the EDA Enabling Resolution to include language which allows the EDA to utilize EDA Special Revenue Funds to facilitate economic development initiatives identified in the EDA Business Plan and approved annually by the City Council. The second request will be approval of a resolution which includes three actions: 1) approval of the EDA 2018 Business Plan; 2) authorizing transfer of funds from the Prior Lake General Fund to the EDA Special Revenue Fund; and 3) author- izing the EDA to utilize the EDA Special Revenue Fund for approved economic development initiatives. ISSUES: The finance director, who is the EDA Treasurer, has raised several points for consideration which the EDA should discuss on April 30. The questions have been forwarded to the city attorney who has been invited to the April 30 EDA meeting as a resource. The EDA Reserve is intended to provide cash flow money so that the EDA can operate between property tax payments, which it is almost exclusively depend- ent upon. Specifically, she requests that 50% of the anticipated next year EDA expenditures remain in this fund at all times. As a practical matter, this means that about $100,000 of the additional revenues from this source will be unavail- able for economic development purposes. The proposed business plan does address this issue but in a more general way. Section 110 of the Prior Lake City Code addresses disposal (not acquisition) of real property. It provides that disposal of real property shall be approved by the City Council. The EDA may acquire real property without City Council, but it may not dispose of it until the City Council has approved. Because of this provision the City Council and EDA are a team in economic development matters. State Statute and City Code Section 110.301 provide that property may not be disposed of unless the Planning Commission has determined that the acquisition or sale is consistent with the comprehensive plan. In most cases it is hard to tell whether the sale or purchase of a single property is relevant to the comprehen- sive plan. The Statute does provide that Planning Commission action may be 3 dispensed with if, by resolution adopted by 2/3rds vote, the acquiring body states that the sale of purchase does not impact the comprehensive plan. We have asked the city attorney to be present at the April 30th EDA Meeting so that any relevant legal issues may be attended to. The EDA will meet once more, on May 14th, prior to the May 21st City Council meeting. The EDA can either approve the EDA 2018 Business Plan as proposed, or amended, or direct staff to place this item on the May 14th EDA agenda for additional discussion. FINANCIAL IMPACT: See Summary of Funding Needs and Resources in the attached EDA 2018 Busi- ness Plan. ALTERNATIVES: 1. Motion and a second approving the EDA 2018 Business Plan, as proposed or further amended by the EDA, and authorizing the staff to present to the City Council all three documents including the proposed amendments to the enabling resolution together with the resolution authorizing funding actions to effectuate this proposal. 2. Motion and a second to table action and provide further direction to staff. RECOMMENDED MOTION: Alternative #1 ATTACHMENTS: 1. 2018 EDA Business Plan 2. Proposed EDA Enabling Resolution Revisions 3. Proposed City Council Business Plan and Funding Resolution Page 1 of 7 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA) 2018 BUSINESS PLAN April 30, 2018 EDA Commissioners: EDA Staff: David Chromy (President) Frank Boyles, Executive Director Annie Sheehan-Kerber (Vice-President) Casey McCabe Zach Braid Amanda Schwabe Marie Boucher-Hoese Cathy Erickson, Treasurer Kirt Briggs Purpose The City of Prior Lake is fortunate to have an active and entrepreneurial entity, known as the Economic Development Authority (EDA), focused on creating a desirable environment to attract and grow businesses which will expand and diversify the city’s tax base and employment opportunities. This business plan describes the framework for the EDA to accomplish the city’s economic development initiatives. The mission of the City of Prior Lake, as stated in 2040 Vision and Strategic Plan, “is to enhance the quality of life for citizens by providing quality services which result in a safe and healthy community; recreation and leisure opportunities; preservation and effective use of lakes, parks and other natural resources; economic vitality; and the promotion of partnerships, volunteerism and civic pride.” This business plan establishes guidelines and criteria regarding the use of EDA Special Revenue Fund to achieve economic development initiatives of the City of Prior Lake and objectives of the EDA. These guidelines and criteria are in addition to the requirements and limitations set forth by provisions of Minnesota Statute 116J.993 – 116J.995 (“MN Business Subsidy Law”) and City of Prior Lake policies and guidelines with respect to any form of subsidy. Prior Lake encourages thoughtful and orderly economic and community development to provide retail and services for our residents, create employment opportunities through retention and expansion of existing businesses and attraction of new businesses, ensure high quality residential and business development, and build a strong and diverse tax base. The fundamental purpose of this plan is to guide the EDA as it develops and implements strategic initiatives in 2018 and beyond to 2020, 2030 and 2040, and to encourage desirable development or redevelopment within our community that may not otherwise occur. Page 2 of 7 EDA Purpose (Bylaws) The business of the Economic Development Authority shall include but not be limited to promoting growth, development and redevelopment of retail, commercial and industrial properties in Prior Lake; diversifying the City’s tax base; providing tools and incentives to achieve the Economic and Community Development Vision Element in the City‘s 2040 Vision and Strategic Plan; and providing an incubator to generate ideas and initiatives to support economic growth and vitality. EDA 2017 Accomplishments & 2018 Goals 2017 EDA Accomplishments • Commercial/Industrial Development o The EDA enjoyed an extremely successful year of commercial/industrial development, in which Prior Lake saw the opening of the Grainwood Senior Living facility and issuance of building permits for the construction of the Prior Lake Revival project, Select Space Storage, Blahnik Law Office, Universal Motors, SDDI Signs, Boathouse Brothers Brewery, Port City Bakery, as well as recommending a redevelopment assistance agreement for PLate on Main. • Communication and Collaboration o The EDA emphasized communication and collaboration between committees by holding joint meetings with the BEC, Planning Commission, and City Council related to land use, 2040 Comprehensive Plan updates and the appropriate use of business incentives. • Land Use Related Activities o 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 which resulted in the removal of the 50% building addition restriction in the Transitional Town Center Use District and identification of key areas for future commercial growth. 2018 EDA Goals • Work with downtown stakeholders (residents, current and potential business owners, etc.) toward an integrated construction and financing plan for streetscaping and building construction/remodeling to maintain and encourage the economic vitality of downtown businesses through the TH13/CR21 corridor improvement project and facilitate future downtown development. • Establish a process and plan to target resources for economic opportunities that provide significant benefits to Prior Lake, including those that may include property acquisition and direct support to commercial and industrial development. • Continue to guide the Business Engagement Committee and support the Technology Village Board of Directors as they implement the recommendations of the Phase II.5 Tec hnology Village Business Accelerator Plan, including expansion opportunities within Scott County. • Explore opportunities to identify, assist and encourage commercial and industrial development along the CH21 and CH42 commercial corridors. Page 3 of 7 • Conduct an annual meeting each with the Scott County CDA First Stop Shop, the Prior Lake City Council, the Prior Lake Planning Commission and Technology Village Board of Directors as well as quarterly meetings with the Business Engagement Committee to promote partnerships and collaboration. 2040 Vision & Strategic Plan Goals Short and Mid Term goals identified under the Economic and Community Development Strategic Element of the 2040 Vision and Strategic Plan include: 1. SHORT: Complete update of Orderly Annexation Agreement or implement agreement “as is.” 2. SHORT: Complete graphic of Downtown based upon the Downtown Development Guide to communicate anticipated evolution of the downtown area. 3. SHORT: Take actions to encourage tourism in accordance with River South objectives. 4. MID: Complete studies to update all development fees contemporaneously with 2040 Comprehensive Plan Update. 5. MID: Facilitate concentrated commercial growth at County Road 13 / County Road 42, County Road 21 / County Road 42, (Jeffers Waterfront), County Road 21/Highway 13 (South Lake Village), Adelmann /County Road 21 (Deerfield Business Park) and County Road 42/ Pike Lake (Vierling Property). 6. MID: Complete update of comprehensive plan utilizing staff resources for land use and SCALE resources for transportation. 7. MID: Repave Colorado Street parking lot in conjunction with TH13/CR21/Main/Arcadia improvement project. 8. MID: Address on-street parking issues in Charlie’s on Prior area. 9. MID: Incorporate enhanced parking facilities where they are demonstrated to be necessary to facilitate commercial development in the community. 10. MID: Extend Arcadia Street as primary downtown southern access and improve wetland trails together with the watershed and/or UMN upon development of Gross Property 2018 EDA Initiatives and Implementation Plan The following actions have been identified by the EDA as 2018 key initiatives. All initiatives work together to support a business community that is focused on technology, job creation, diversification of tax base and Prior Lake’s strengths in entertainment and recreation. 1. Special Revenue Fund Economic Development Initiatives. Periodically the EDA will request that the City Council allocate funds from the Prior Lake General Fund (Fund 101) to the EDA Special Revenue Fund (Fund 240). The EDA will utilize funds from the EDA Special Revenue Fund to accomplish the following economic development initiatives in 2018 and beyond. Initiatives include but are not limited to: i) property acquisition; ii) storefront rehabilitation; iii) direction and promotional signage such as banner poles, visitor kiosks, or wayfinding signage; iv) economic development and redevelopment loans and incentives; v) new business attraction through website enhancements and marketing; vi) efforts to facilitate commercial development and redevelopment; and vii) enhancing the character of commercial areas. Page 4 of 7 2. Technology Village Business Accelerator. Technology Village opened in January 2013 on the main floor of Prior Lake City Hall within a previously underutilized office space of approximately 2,000 square feet. Initiating the program in the existing city hall building helped minimize start-up costs and allowed for the shared use of services already in place serving City of Prior Lake staff, including; internet, phone, meeting space, cafeteria/break room, etc. The office space within city hall also provided the added locational benefit of allowing the program participants to be near city staff who administer the day-to-day program operations. The Technology Village Board of Directors developed a ‘virtual’ participant program in 2016. The virtual program is designed to provide support to emerging technology and professional service businesses located in Prior Lake, or throughout Scott County, which are not physically located in the designated Technology Village space. The virtual program provides an opportunity for businesses, which may be home-based or are already established in an office space, to participate and benefit from the Technology Village Business Accelerator program. In 2018, the EDA will focus on shifting the Technology Village program from a City of Prior Lake program into a county-wide model, which will be managed by First Stop Shop staff within the Scott County CDA. 3. Targeted Areas for Development. The EDA will help facilitate commercial development in three targeted areas around highway intersections, including: (i) CH 21 / TH 13; (ii) CH 21 / CH 42; and (iii) CH 42 / TH 13. It will also help facilitate full development of the remaining lots within the 50-acre Deerfield Business Park and maximize development potential within the 40-acre Welcome Industrial Park. Redevelopment opportunities also exist in certain locations, such as Welcome Avenue and downtown Prior Lake. 4. Downtown Parking. In 2015, SRF Consulting Group completed a Downtown Parking Analysis. The purpose of the study was to build upon previous parking studies by identifying downtown sites that will best accommodate future public parking demand, including structured parking facilities. Prior Lake is fortunate to not only have very little downtown vacancy, but the downtown is also seeing some significant commercial development and redevelopment activity. With the increased activity and occupied storefronts, convenient municipal parking stalls will become more difficult to locate. The EDA will review the Downtown Parking Analysis and determine which short, mid and long-term implementation steps should be pursued. 5. Commercial Activity During Construction. Prior Lake will see some significant road improvement projects in 2018 and 2019 along key transportation networks. The EDA will work with commercial businesses and stakeholders in these areas, as well as the Chamber of Commerce, Business Engagement Committee and other groups to maintain and encourage the economic vitality of our businesses before, during and after these construction projects. Page 5 of 7 Unique Challenges for Prior Lake 1. Historical Investments in Commercial/Industrial Development. The city has invested much of its public resources in supporting a healthy and vibrant residential lake community, which has been very successful. Residential property values are well above average as a result, but the total market value of commercial/industrial (C/I) property is below average. For example, Prior Lake’s payable 2019 estimated market value for commercial/industrial property is 3.55% of total. This amount is low when compared to commercial/industrial values in Savage at 12.72% or Shakopee at 24.72% of total. 2. Direct Access to Major Principal Arterial Transportation Systems. Prior Lake’s location outside of the metro’s major highway system results in limited access to Interstate, US and State Highways. Although Prior Lake has convenient access to the major transportation corridors, businesses look elsewhere when highway access a top priority for them. In addition, rail service is absent in Prior Lake. Important improvements have occurred recently on County Highway 21 north and east, resulting in much better access to and from Prior Lake and additional transportation improvements are planned along Hwy 13 and CH21 which will improve access. Prior Lake does have access to a high-speed fiber network which the city has taken advantage of through a cooperative project with Integra. Through this effort, fiber was made available to the city’s various commercial/industrial areas to help compensate for the lack of highway and rail infrastructure. 3. Pad-Ready Commercial/Industrial Sites. Prior Lake has a healthy overall supply of property guided for commercial, business park, and industrial development. However, not all of this land is ‘pad-ready’ for development. Prior Lake has approximately 56 acres of vacant commercial property with 36 acres being pad-ready or near pad-ready (64%). The city has approximately 50 acres of vacant business park/industrial property with 25 acres being pad- ready or near pad-ready (50%). This land supply is insufficient to accommodate the increased commercial and industrial development anticipated in the Commercial and Industrial Demand Analysis, completed by Maxfield Research. The Comprehensive Land Use Plan, which is currently being drafted by city staff, will dedicate additional commercial and industrial land for future development. 4. Direct Business Connection or Link to the Lakes. Prior Lake is known for its fourteen lakes, parks and many recreational opportunities, which are extremely important assets for city residents. However, there is very little connection between these assets and the business community. With one restaurant and few commercial marinas located here, Prior Lake could benefit from additional commercial opportunities related to its lakes and recreation. Summary of Funding Needs and Resources Budget Premise: The following key premises are accepted by the EDA for future budgeting:  Support one-half of the Community Development Director position.  Support one-half of a City Planner position. Page 6 of 7  Provide other necessary operational expense support (e.g., legal, communications, training).  Utilize professional services to move certain initiatives forward to implementation.  Maintain a reserve balance allowing the EDA to be entrepreneurial in assisting C/I growth. 2017 EDA Budget Budgeted Expenditures Budgeted Revenues $125,041 Personnel Services $140,000 EDA Levy $26,284 Operational Expenses $2,500 Interest Earnings $9,500 Technology Village $8,500 Technology Village Leases $160,825 Budgeted Expenditures $9,825 EDA Reserves $160,825 Budgeted Revenue Actual Expenditures Actual Revenues $94,231.41 Personnel Services $139,357.85 EDA Levy $2,930.06 Operational Expenses $1,523.12 Interest Earnings $1,335.61 Technology Village $8,292.53 Technology Village Leases $98,497.08 Actual Expenditures $0.00 EDA Reserves $149,173.50 Actual Revenue Available EDA Special Revenue (Reserve) Fund Balance as of 12/31/17 = $200,962 2018 EDA Budget Budgeted Expenditures Budgeted Revenues $117,453 Personnel Services $140,000 EDA Levy $28,324 Operational Expenses $2,700 Interest Earnings $7,820 Technology Village $7,820 Technology Village Leases $153,597 Budgeted Expenditures $3,077 EDA Reserves $153,597 Budgeted Revenues Measuring Success (Metrics) The EDA will track performance measurements that allow reporting on important aspects of its services, programs and processes. To measure progress toward achieving the objectives identified in this plan, the following metrics will be used: • Track building permits issued for commercial/industrial projects. • Track residential permits and remaining lot inventory. • Track lease inventory of available commercial/industrial building space. • Track change in commercial/industrial market value using County data. • Track the number and acreage of pad-ready commercial/industrial sites. Page 7 of 7 INTENT TO RETAIN FLEXIBILITY The EDA will work to prioritize those projects that, in the EDA’s judgment, will address the most pressing public purpose. Because it is not possible to anticipate every type of project that may provide benefit to the City of Prior Lake, the EDA shall retain the option to amend or waive sections of this plan when it is determined to be necessary and/or appropriate. This business plan will provide guidance regarding the criteria the EDA will use in evaluating certain initiatives; however, whether a project meets the criteria and serves the City’s present needs shall be the EDA’s decision. The guidelines are instructive only and do not have the force of law. If the EDA finds that its present needs require one project to be given priority over another, then the EDA’s judgment will ultimately prevail. It is the intent of the EDA to provide funding to achieve these economic development initiatives in the most limited fashion possible to assure the initiatives are achieved. This process is inherently subjective, and whether an initiative is funded or achieved may be as much a function of the EDA’s budget as the merit of the project or initiative. FUNDING SOURCES Funding to achieve the economic development initiatives identified within this plan is available within the EDA annual budget and the EDA Special Revenue Fund. The EDA Special Revenue Fund has an available cash balance of $200,962 as of 12/31/2017. In addition, the Prior Lake City Council has provided $[TBD] of General Fund Reserves to the EDA Special Revenue Fund to pursue these initiatives. The EDA will attempt to identify sustainable sources of revenue for future consideration by the City Council. Potential sources of revenue that the EDA will explore, in addition to general fund reserves, include, but are not limited to a redirection of fiscal disparity funds to the EDA, the transfer of revenue generating properties form the City of Prior Lake to the EDA, or an increase in the EDA levy. Comprehensive Financial Management Policy In conformance with the Comprehensive Financial Management Policy, the EDA will strive to maintain a fund balance within the EDA Fund to meet both anticipated and unanticipated future economic development needs. The EDA will maintain a reserve balance at a level which takes into consideration, i) professional services; ii) significant funding which may be required for acquisition of land for development opportunities; iii) potential relocation costs or legal costs attributable to economic development actions; iv) anticipated or unanticipated environmental concerns or impacts; and v) cash flow for a minimum of six (6) months of projected operating expenditures. ANNUAL REPORTING The EDA will submit an updated Business Plan to the City Council annually which details the previous year’s activities and provides an accounting of how EDA funds were spent to achieve the identified initiatives during the prior year. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-xxx A RESOLUTION AMENDING RESOLUTIONS 13-018, 10-097, 00-119, 96-99 AND 89-17 WHICH ESTABLISHED THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES, CHAPTER 469 Motion By: Second By: WHEREAS, The Minnesota State Legislature has enacted Minnesota Statues, Sections 469.090 to 469.108 authorizing any statutory or home rule charter city to establish an economic development authority having the powers contained in the Enabling Act and a housing and redevelopment authority established under Minnesota Statutes, Sections 469.001 to 469.047 or other law, and a city under Minnesota Statutes, Sections 469.124 to 469.134 or other law; and WHEREAS, In 1989, the City Council of Prior Lake established such an economic development authority by adoption of Enabling Resolution 89-17; and thereafter amended the Enabling Resolution in 1996 by adoption of Resolution 96-99, in 2000 by adoption of Resolution 00-119, in 2010 by adoption of Resolution 10-097 and in 2013 by adoption of Resolution 13-018; and WHEREAS, The City Council desires to further amend the Enabling Resolution; and WHEREAS, This Enabling Resolution defines the relationship between the Economic Development Authority and the City Council; and WHEREAS, It is intended that this resolution may be amended from time to time as required to further define or redefine the respective roles of the Economic Development Authority and the City Council regarding development and redevelopment within the City; and WHEREAS, This resolution and the actions taken hereunder provide for the City Council to establish broad policies for public assisted development within the City and delegate that the implementation of such policies will be the responsibility of the Economic Development Authority; and WHEREAS, The City Council believes that adoption of this resolution and the creation of an economic development authority will result in a conscientious and coordinated effort to encourage and precipitate future development within the City so as to increase the tax base, promote employment and enhance the health, safety and welfare of city residents; and 2 WHEREAS, The City has complied with the statutory requirements set out in the Enabling Act pertaining to making a change in the composition of the Economic Development Authority; to wit: (1) legal notice of the time and date of the public hearing was duly published and mailed in accordance with State Statute and City; and (2) the City Council conducted a public hearing on May 21, 2018 to provide an opportunity for those interested in this amendment to the Enabling Resolution to express their views. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Establishment. There is hereby created in the City an Economic Development Authority which, subject to the provisions of this Enabling Resolution, shall have all of the powers, duties and responsibilities of any economic development authority created pursuant to the Enabling Act, or other law, a housing and redevelopment authority created pursuant to the Housing Act, or other law and which shall constitute an “Agency” pursuant to the Development Act. It shall be the role and responsibility of such economic development authority to carry out economic, housing and industrial development and redevelopment within the City in accordance with such general policies as may from time to time be established by the City Council. 3. Definitions. A. “Authority” means the Prior Lake Economic Development Authority. B. “City” means the City of Prior Lake, Minnesota. C. “Council” means the duly elected governing body of the city. D. “Enabling Act” means Minnesota Statutes, Sections 469.090 to 469.108, authorizing the City of Prior Lake to create an economic development authority. E. “Enabling Resolution” means this resolution of the Council establishing the Prior Lake Economic Development Authority pursuant to the Enabling Act. F. “The Development Act” means the City Development Districts, Minnesota Statutes, Sections 469.124 to 469.134. G. “Federal Tax Law Limitation Act” means the provisionscertain acts of Congress which limit the aggregate amount of obligations of a specified type which may be issued within the City, as further defined in Minnesota Statutes, Section 474A.02Section 474.16, Subdivision 5 of the Industrial Bond Act and as may from time to time be defined in other state laws. H. “The Housing Act” means Municipal Housing and Redevelopment Authorities, Minnesota Statutes, Sections 469.001 to 469.047. I. ”The Housing Bond Act” means the Municipal Housing Program Act, Minnesota Statutes, Chapter 462C. J. “Industrial Bond Act” means the Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 to 469.165. K. “Project Area Plan” means an outline for the development or redevelopment of a geographic area of Authority concentration which contains a statement of objectives for improvement of the area as well as a description of public facilities to be constructed, and estimated schedule of the open space to be created, the environmental controls to be applied, the property to be publicly acquired and the condition under which the Authority shall exercise the right of eminent domain, if any, the proposed reuse of private property and the general standards of development. Said plan shall be sufficiently complete to constitute a “development program” pursuant to Section 469.125, Subdivision 3 of the Development Act and a “redevelopment plan” pursuant to Section 469.002, Subdivision 16 of the Housing Act. 3 L. “Project Budget” means a financial budget containing the sources and uses of public funds to be expended in carrying out the public costs associated with a Project Plan or Project Area Plan. In the event any or all such public costs are to be paid with tax increment, the Project Budget shall constitute a “tax increment financing plan” as described in Section 469.175 of the Tax Increment Act. M. “Project Plan” means a description of the development or redevelopment of property, including an estimated schedule, the property to be publicly acquired and the condition under which the Authority will exercise its right of eminent domain, if any, description of the public facilities to be constructed, and the proposed reuse of private property. N. “Tax Increment Act” means Tax Increment Financing, Minnesota Statutes, Sections 469.174 to 469.179. 4. Legal Status. The Authority shall be a public body politic and corporate and a political subdivision of the State of Minnesota. It shall not be considered a department of the City nor shall the City be liable for its obligations, unless assumed by the City in writing. Its relationship to the Council and Mayor shall be governed by the Enabling Act, this Enabling Resolution and the various statutes under which it operates, including the Enabling Act, the Housing Act, the Development Act, the Industrial Bond Act, the Housing Bond Act and the Tax Increment Act; provided, that in the event there is a conflict between the terms of this Enabling Resolution and any such statute, the statute shall control; provided further, that a statute granting authority shall not be deemed to be in conflict with a statute that grants less or no such authority. 5. Name. The economic development authority created by the Enabling Act and this Enabling Resolution shall be known legally as the Prior Lake Economic Development Authority (EDA) or “Authority.” 6. Governing Body. The governing body (“board”) of the Authority shall be vested in a five (5) member board, a majority of whom shall constitute a quorum for all purposes. A. The governing board of the Authority shall be made up of five (5) members. Two (2) of the members shall be appointed from the City Council and the remaining three (3) members shall be appointed from among individuals who either live in the City or who own a controlling interest in a business located within the City (“community members”). B. The Mayor shall appoint the Authority commissioners with the approval of the City Council. C. Terms of office, removal and filling vacancies shall be set out in the EDA Bylaws. D. The Authority shall establish bylaws, with the approval of the City Council, to govern the operation of the Authority. E. The conduct and actions of EDA commissioners shall be governed by a Code of Conduct and Ethics and Conflict of Interest provisions set out in the EDA Bylaws. 7. Officers of the Authority. The commissioners of the Authority shall elect officers as provided in Section 469.096 of the Enabling Act. The City Manager shall be Executive Director to the Authority. 8. Authority Staff. A. The Authority shall be empowered to hire such employees, agents and consultants as deemed proper and as further provided by the Enabling Act. Such employees, agents and consultants shall assist the commission in performing the following powers and duties: 1. To see that all resolutions, rules, regulations, or orders of the Authority are enforced. 2. To appoint and remove upon the basis of merit and fitness, all subordinate officers and regular employees of the Authority. 3. To present to the Authority plans, studies and reports prepared for Authority purposes and recommend to the commissioners for adoption such measures as deemed necessary to enforce 4 or carry out the powers and duties of the Authority or the efficient administration of the affairs of the Authority. 4. To recommend for adoption such rules and regulations as deemed necessary for the efficient operation of the Authority’s functions. 5. To perform such other duties as may be prescribed by the Authority. 6. The City Attorney shall serve as counsel to the EDA. 9. Reports. A. At least once annually, the Authority shall submit a report to the members of the City Council and public regarding the operational status of the Authority. Such report shall comply with Minnesota statutes Section 469.100, Subdivision 4 and shall include a description of current and proposed projects as well as general development goals for the city. B. The Authority shall be responsible for all filings and reports required by the various statutes under which it operates. Copies of all such reports shall be provided to the City Council and Mayor and shall be available to members of the public unless classified as private or non-public under the Minnesota Data Practices Act or classified as private or non-public by a state of federal statute classifying the data as private or non-public. 10. Account, Budget and Fiscal Year. A. The accounting, maintenance of books and records, establishment and maintenance of funds and accounts, investment of cash surpluses, disbursement of monies and other necessary financial matters of the Authority shall be the responsibility of the Authority Treasurer. The Authority accounting, investment, fund maintenance and disbursement shall be consistent with City procedures. B. On or before July 30 of each year the Authority shall submit its annual budget to the City Manager in a form prescribed by the City Manager. Such budget shall include a detailed written estimate of the amount of money that the Authority expects to need from the City for Authority business during the next fiscal year and shall otherwise comply with Minnesota Statute Section 469.100, Subdivision 1 of the Enabling Act. The City Council may impose such conditions as it deems appropriate and prudent upon the issuance of obligations by the City for the purpose of funding the Authority’s budget. The City Manager, in consultation with the City Finance Director shall review and consider including the proposed Authority budget as a part of the City budgetary process. The Authority shall appear before the City Council to explain and discuss the content of the proposed Authority budget. Upon approval of such budget, the Authority shall not exceed total budgeted expenditures without approval of corresponding budget amendments by the City Council; provided, however, that this provision shall not preclude the Authority from unilaterally making line-item changes as it deems appropriate. C. The Council authorizes the Authority to expend non-budgeted funds from the EDA Special Revenue Fund (Fund 240) for eligible “Special Revenue Fund Economic Development Initiatives”, as specifically identified by the Authority in the EDA Business Plan which Plan is to be approved by the Council annually. B.D. The fiscal year of the Authority shall be the same as the fiscal year of the City of Prior Lake. 11. Powers. A. The Authority may exercise all of the powers contained in the Enabling Act and the Enabling Resolution. B. The Authority may exercise all of the powers contained in the Housing Act. C. The Authority may exercise all of the powers of an Agency contained in the Development Act. D. The Authority may exercise all of the powers of a redevelopment agency contained in the Industrial Bond Act. 5 E. The Authority may exercise all of the powers of a city contained in the Housing Finance Act, provided it has been authorized to do so by ordinance of the City Council pursuant to Section 462C.02, Subdivision 6 of the Housing Financing Act. F. The Authority may exercise all of the powers of an authority contained in the Tax Increment Act. G. The Authority may exercise such powers as may be contained in other laws applicable to economic development authorities or housing and redevelopment authorities not specifically described herein. H. The Authority may appoint subcommittees as it deems necessary to carry out its other powers and duties. All subcommittees shall comply with the Minnesota Open Meeting Law. 12. Limit of Powers. A. The sale of all bonds issued by the Authority must be approved by the City Council before issuance. B. The ability of the Authority to participate as a limited partner in a development project must have prior approval of the City Council. C. All official actions of the Authority must be consistent with the adopted comprehensive plan of the City, and any official controls implementing the comprehensive plan. D. The Authority must submit its bylaws, administrative structure and management practices to the City Council for approval. E. The Authority may exercise tax increment financing authority powers only with the prior approval of the City Council. PASSED AND ADOPTED THIS 21st DAY OF May, 2018. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-xxx A RESOLUTION APPROVING THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA) 2018 BUSINESS PLAN AND APPROVING A FUND TRANSFER FROM THE PRIOR LAKE GENERAL FUND (FUND 101) RESERVE TO THE EDA SPECIAL REVENUE FUND (FUND 240) Motion By: Second By: WHEREAS, The City of Prior Lake Economic Development Authority (EDA) has completed its 2018 Business Plan and submitted it to the City Council for review and approval; and WHEREAS, The Business Plan identifies EDA initiatives during 2018 and beyond; and WHEREAS, WHEREAS, WHEREAS, WHEREAS, The EDA has requested the City Council allocate funds from the Prior Lake General Fund to the EDA Special Revenue Fund to accomplish the economic development initiatives in 2018 and beyond; and EDA initiatives include but are not limited to: i) property acquisition; ii) storefront rehabilitation; iii) direction and promotional signage such as banner poles, visitor kiosks, or wayfinding signage; iv) economic development and redevelopment loans and incentives; v) new business attraction through website enhancements and marketing; vi) efforts to facilitate commercial development and redevelopment; and vii) enhancing the character of commercial areas; and The City Council finds that it is in the public interest to approve the EDA 2018 Business Plan to further economic development in Prior Lake; and The City Council finds that it is in the public interest allocate funds from the Prior Lake General Fund to the EDA Special Revenue Fund to accomplish the economic development initiatives in 2018 and beyond. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Prior Lake City Council approves the Economic Development Authority 2018 Business Plan. 3. The Prior Lake City Council approves the transfer of $275,000 from the Prior Lake General Fund (Fund 101) to the EDA Special Revenue Fund (Fund 240). 4. The Prior Lake City Council authorizes the EDA to expend funds from the EDA Special Revenue Fund (Fund 240) to facilitate economic development initiatives identified in the EDA Business Plan, which plan is to be approved annually by the City Council. C:\Users\cmccabe\Desktop\04 30 2018 EDA Business Plan Attach3_CC Resolution.docx 2 Passed and adopted by the Prior Lake City Council this 21st day of May 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager