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HomeMy WebLinkAbout07 09 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 AGENDA Monday, July 9, 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/July 9, 2018 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. June 11, 2018 4. CONSENT AGENDA A. Development Update (06/30/2018) 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS A. None. 7. PUBLIC HEARINGS A. No Public Hearings Scheduled 8. OLD BUSINESS A. Economic Development Website Update B. Downtown Property Maps 9. NEW BUSINESS A. City Owned Property Electric Upgrades B. Credit River Township Agreement for Annexation 10. OTHER BUSINESS A. Staff Updates B. Commissioner Comments C. Construction Projects Business Impact Game Plan 11. 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 June 11, 2018 1. CALL TO ORDER PRESIDENT CHROMY called the meeting to order at 4:00 p.m. Present were Chromy, Sheehan-Kerber, Braid, Briggs and Boucher-Hoese. Also present were Community Development Director McCabe and Planner Schwabe. Guests present were Stacy Crakes and Jo Foust with the Scott County First Stop Shop and Ron Martin, Kim Prchal, Wade Larson, Sandi Fleck, Stephanie Carroll, Tommy Hesch, Jeff Petschl with the Business Engagement Committee. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BRAID, TO APPROVE THE AGENDA WITH THE ADDITION OF A PRESENTATION BY STACY CRAKES AND JO FOUST AS ITEM 6A. Ayes by Chromy, Sheehan-Kerber, Braid, Briggs and Boucher-Hoese. The motion carried 5-0. 3. APPROVAL OF MEETING MINUTES A. April 9, 2018 MOTION BY BRAID, SECONDED BY BOUCHER-HOESE, TO APPROVE THE APRIL 9, 2018 MEETING MINUTES. Ayes by Chromy, Sheehan-Kerber, Braid, Briggs and Boucher-Hoese. The motion carried 5-0. B. April 30, 2018 MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER, TO APPROVE THE APRIL 30, 2018 MEET- ING MINUTES. Ayes by Chromy, Sheehan-Kerber, Braid, Briggs and Boucher-Hoese. The motion carried 5-0. 4. CONSENT AGENDA A. Development Update (05/31/2018) DIRECTOR MCCABE provided an overview of the residential and commercial building permit year to date totals, commercial activity and an update on annexation requests. B. EDA Revenue & Expenditure Report DIRECTOR MCCABE gave an update on the current EDA revenues and expenditures. MOTION BY BRAID, SECONDED BY BOUCHER-HOESE, TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Braid, Briggs, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PRESENTATIONS A. Development Leads CRAKES provided a brief history of how Scott County First Stop Shop (FSS) historically obtained leads and the programs utilized including DEED, Greater MSP and MNCAR. FSS currently utilizes a program via MNCAR called “Catalyst” to view and/or search available properties which are then entered into their Salesforce System. FOUST shared examples of what the MNCAR/Catalyst leads typically contain. 2 CRAKES stated that City Staff typically gets involved with the DEED and Greater MSP leads, as those pro- spects are usually already vetted and may move forward at a faster pace. BRIGGS questioned events and/or activities that FSS has been involved in to promote area communities. CRAKES stated that in 2013 and 2014 a broker event was held at Canterbury Park in Shakopee, which was open to all communities in Scott County. Ms. Crakes stated that FSS would be available and interested to assist with broker events in the future. BRIGGS shared that he is looking forward to taking a proactive approach rather than a reactive approach to promoting the City of Prior Lake and soliciting new commercial and industrial businesses. CRAKES explained that there are reports available upon request related to leads. EDA members thanked Ms. Crakes and Ms. Foust for their time and hard work associated with promoting the City of Prior Lake. 7. PUBLIC HEARING No Public Hearings 7. OLD BUSINESS None 8. NEW BUSINESS A. EDA Special Revenue Fund Approval - Next Steps DIRECTOR MCCABE congratulated the EDA on the City Council approval of the EDA Special Revenue Fund. Approximately $475,000 exists in the fund; however, approximately $375,000 is available for distribution which would allow approximately $100,000 balance to remain as recommended previously by Finance Direc- tor Erickson. MCCABE distributed a map of downtown parcels developed by Staff and discussion followed related to op- portunities for investment. CHROMY stated that the EDA may want to focus on what the vision is for residents as well as those working and/or passing through Prior Lake related to the aesthetics of Prior Lake after the road improvement/con- struction projects are complete. BRIGGS suggested a weighted system for fund allocation based on the location of the parcel, size of the parcel/contiguous parcel(s) that may unlock additional opportunities. SHEEHAN-KERBER shared that solutions to alleviate parking concerns should also be prioritized. MCCABE clarified that EDA funds could also be used to incentivize projects; not necessarily only for acqui- sition. BRAID questioned the parcels currently in the downtown area that are legal, non-conforming and suggested the use of funds to bring parcels into compliance. PRCHAL recommended focusing any future marketing materials on where the City is headed via the 2040 Comprehensive Plan and bringing forward the information in a unified fashion. 3 Discussion followed regarding downtown parcels and next steps related to city-owned parcels. CHROMY referenced an RFP for downtown redevelopment which was distributed in 2011 which resulted in minimal responses that were primarily residential. PETSCHL suggested visuals be added to the landscape so potential future developers could better under- stand the future right-of-way locations. MOTION BY CHROMY, SECONDED BY SHEEHAN-KERBER, TO DIRECT STAFF TO PREPARE THREE MAPS FOR FUTURE DISCUSSION AS FOLLOWS: 1) Map identifying city owned parcels that may be opportunities for redevelopment that reflects the new HWY13/CSAH 21 road alignment, legal, non-conforming parcels in the downtown area, areas of recent investment, and zoning data. 2) Map showing new HWY 13/CSAH 21 road alignment and possible transportation improvements and po- tential associated properties. 3) Map to reflect new road alignment and conforming parcels that may be opportunities for redevelopment. Ayes by Chromy, Braid, Briggs, Sheehan-Kerber and Boucher-Hoese. The motion carried 5-0. B. Joint EDA / BEC Discussion Topics a. Economic Development Web Page Enhancements DIRECTOR MCCABE provided an overview of the economic development related pages/information that are proposed to be incorporated into the City of Prior Lake website. MCCABE shared that there are no out of pocket costs associated with the proposed website update. PRCHAL shared that additional information should be included related to commercial building re- quirements and forms. SHEEHAN-KERBER suggested adding testimonials from individuals to showcase the experience of others starting or moving their business to Prior Lake. CARROLL stated that there are more opportunities with the website to better market the community. EDA DIRECTED STAFF TO OBTAIN A QUOTE FROM A WEB DEVELOPMENT VENDER(S) FOR A SEPARATE ECONOMIC DEVELOPMENT WEBSITE WITH EDITING RIGHTS AND MAINTE- NANCE AND/OR ENHANCEMENTS TO THE CURRENT WEBSITE. b. Commercial Traffic During Construction PRCHAL informed those in attendance that the Prior Lake Chamber of Commerce recently hosted a meeting for its members with the topic of surviving and thriving during construction. Ms. Prchal shared the BEC prepared flyers identifying resources related to the construction project(s) and the BEC will be sharing them with businesses in the upcoming months. Ms. Prchal commented on recent BEC commercial area liaison visits that were completed in the downtown area and stated that busi- ness owners were thankful and appreciative of the outreach. PETSCHL stated that EDA participation in communicating information during construction would be very helpful. Mr. Petschl expressed that timely and accurate information is very important for busi- nesses, so they can communicate with their customers, employees and delivery servicers. 4 BRIGGS questioned if downtown business owners and employees would be willing to park outside of the downtown district during construction if alternative parking options were provided. Mr. Briggs stated the BEC may want to consider alternate parking options for business owners and employees to keep prime parking spaces available for customers during construction. CARROLL commented on the construction project occurring in the 50th and France area of Edina. Ms. Carroll stated they are offering shuttle or valet service during construction and there may be a desire during certain events or provide shuttle service for employees in Prior Lake. She also stated there is a lot of signage with messages such as, ‘thank you for your patience’ or ‘it will be worth the wait’ and felt these signs communicated a positive message about the construction project. BRAID informed the EDA and BEC members that the City Council has hired a consultant to focus on business communication with the Duluth Avenue / Park Nicollet project. Mr. Braid was hopeful there would be tips and lessons learned that can be used during the CH21/Hwy 13 project. He also stressed the importance of the ‘buy local’ message and stated that all things being equal, local pref- erence should be considered for those businesses in the construction areas. MOTION BY BRIGGS AND SECOND BY BRAID TO FORWARD A RECOMMENDATION TO THE CITY COUNCIL THAT THE CITY OF PRIOR LAKE MAKE AN EXTRA EFFORT DURING ROAD CONSTRUCTION PROJECTS TO PURCHASE GOODS AND SERVICES FROM BUSINESSES IN THE AFFECTED AREAS. Ayes by Chromy, Sheehan-Kerber, Braid, Briggs and Boucher-Hoese. The motion carried 5-0. CARROLL encouraged the person hired for additional communication during construction projects coordinate with the BEC, so the information can be shared with businesses in all commercial areas because all businesses will be affected, not just in the immediate construction areas. 9. OTHER BUSINESS A. Staff Updates None. B. Commissioner Comments None. C. Construction Projects Business Impact Game Plan None. 10. ADJOURNMENT MOTION BY BRAID, SECONDED BY BRIGGS, TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 6:00 p.m. ___________________________ Frank Boyles, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 9, 2018 AGENDA #: 4A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: DEVELOPMENT UPDATE DISCUSSION: Introduction The purpose of this consent agenda item is to review the residential and com- mercial development update as of June 30, 2018. 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 development 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: July 5, 2018 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 June 30, 2018. Number of Permits Declared Value Number of Permits Declared Value Number of Permits % Increase / (% Decrease) Declared Value % Increase / (% Decrease) Single Family Dwellings 51 $18,674,376.00 40 $12,915,000.00 27.50 44.59 Townhouses (# units)39 $6,463,400.00 0 $0.00 3900.00 ### Multiple Units 0 $0.00 1 $8,787,000.00 (100.00)n/a New Commercial Industrial & Commercial 1 $1,600,000.00 0 $0.00 100.00 ### Residential 410 $4,036,467.00 396 $2,218,057.00 3.54 81.98 Industrial & Commercial 15 $2,763,400.00 6 $347,500.00 150.00 ### Mechanical 332 $0.00 280 $0.00 18.57 n/a Mechanical (SF & TH)360 $0.00 156 $0.00 130.77 n/a TOTALS 1208 $33,537,643.00 879 $24,267,557.00 37.43 38.20 t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees. Increase / (Decrease)2018 Year to Date 2017 Year to Date New Residential Additions and Alterations 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 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 9, 2018 AGENDA #: 8A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: ECONOMIC DEVELOPMENT WEBSITE UPDATE DISCUSSION: Introduction The purpose of this agenda item is to discuss a City of Prior Lake economic de- velopment focused website. History During the June 11, 2018 EDA meeting, Business Engagement Committee mem- bers were in attendance to share proposed economic development related up- dates to the City of Prior Lake website. Following discussion, the EDA directed staff to obtain a quote from a web development vendor for a separate economic development website. Current Circumstance City staff has requested a quote from Bufflehead Web Design, who assisted city staff with the creation and maintenance of the current City of Prior Lake website. Staff is hopeful a quote will be available to share with the EDA on July 9th. Conclusion City staff has requested funding in the 2019 budget for a City website update. The EDA should discuss whether they wish to pursue a stand-alone economic devel- opment website at this time or if it would be more appropriate to incorporate the economic development website enhancements with a city website update in 2019. FINANCIAL IMPACT: New business attraction through website enhancements and marketing has been identified in the EDA Business Plan as an eligible use of EDA Special Revenue Funds. The EDA Special Revenue Fund has an estimated fund balance of $475,000; approximately $100,000 of this fund balance should be retained for cash flow purposes. ALTERNATIVES: 1. Motion and second to provide direction to staff related to economic develop- ment website enhancements. 2. Continue discussion at a future meeting. RECOMMENDED MOTION: 1. Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 9, 2018 AGENDA #: 8B PREPARED BY: PRESENTED BY: Casey McCabe, Community Development Director Casey McCabe AGENDA ITEM: DOWNTOWN PROPERTY MAPS DISCUSSION: Introduction The purpose of this agenda item is to review downtown property maps. History The EDA Enabling Resolution was amended by the City Council on May 21st to include language which allows the EDA to utilize EDA Special Revenue Funds to facilitate economic development initiatives identified in the EDA Business Plan. In addition, the City Council approved a transfer of $300,000 from the Prior Lake General Fund to the EDA Special Revenue Fund. Funds from the EDA Special Revenue Fund may be used by the EDA to accom- plish the following economic development initiatives: i) property acquisition; ii) storefront rehabilitation; iii) direction and promotional signage, such as banner poles visitor kiosks or wayfinding signage; iv) economic development and rede- velopment loans and incentives; v) new business attraction through website en- hancements and marketing; vi) efforts to facilitate commercial development and redevelopment; and vii) enhancing the character of commercial areas. Current Circumstances As a follow up to the City Council approval of the EDA 2018 Business Plan and transfer of funds from the Prior Lake General Fund to the EDA Special Revenue Fund, the EDA discussed how they would like to proceed with the identified eco- nomic development initiatives at their June 11th meeting. At this meeting, the EDA directed staff to prepare downtown property maps identifying parcels the EDA may wish to pursue for future acquisition and/or redevelopment. Brian Welch, Prior Lake’s Information System Coordinator, has prepared the at- tached maps for EDA review. The first attachment includes the proposed HWY13/CH 21 road alignment and identifies non-conforming uses, city owned properties, and zoning districts. The second attachment eliminates the zoning layers so only the proposed HWY13/CH 21 road alignment, non-conforming uses and city owned properties are identified. Mr. Welch is also preparing addi- tional maps for EDA discussion, which will be available at the July 9th meeting. 2 Conclusion EDA members should review the attached maps and provide direction to staff related to any final revisions at the July 9th meeting. ISSUES: It is assumed any parcels the EDA may consider acquiring in the future would be purchased from a willing seller at a fair market value. FINANCIAL IMPACT: The EDA Special Revenue Fund has an estimated fund balance of $475,000; approximately $100,000 of this fund balance should be retained for cash flow purposes. ALTERNATIVES: 1. Motion and second providing direction to staff related to any necessary revi- sions to the downtown property maps. 2. Continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENTS: Alternative #1 Downtown Property Maps RAC INE S T SE OAK ST SE B L U F F H E I G H T S T R L S E E V A N S T O N A V S E MINNESOTA ST SE W E S T A V S E A R C A D I A A V S E D U L U T H A V S E K O P P K W Y S E H A S T I N G S A V S E M A I N A V S E ERIE AV SE CREDIT RIVER RD SE CAMBRIDGECIRSE COLORADO ST SE PLEASANT ST SE D A K O T A S T S E 456744 456721 456721 -A13 LittlePrior Lake LakefrontPark RotaryGatewayPark Scott County GIS DOWNTOWNPRIOR LAKE City of Prior Lake²Minnesota 2018 Non-Conform ing Use TC: TOWN CENTER TC-T: TRANS ITIONAL TWN CNTR SHORELAND OVERLAY City-Owned P roperties Parcels 0 200 400 Feet Map 1 RAC INE S T SE OAK ST SE B L U F F H E I G H T S T R L S E E V A N S T O N A V S E MINNESOTA ST SE W E S T A V S E A R C A D I A A V S E D U L U T H A V S E K O P P K W Y S E H A S T I N G S A V S E M A I N A V S E ERIE AV SE CREDIT RIVER RD SE CAMBRIDGECIRSE COLORADO ST SE PLEASANT ST SE D A K O T A S T S E 456744 456721 456721 -A13 LittlePrior Lake LakefrontPark RotaryGatewayPark Scott County GIS DOWNTOWNPRIOR LAKE City of Prior Lake²Minnesota 2018 Non-Conform ing Use City-Owned P roperties Parcels 0 200 400 Feet Map 2 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 9, 2018 AGENDA #: 9A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: CITY OWNED PROPERTY ELECTRIC UPGRADES DISCUSSION: Introduction The City of Prior Lake received a request to assist with costs related to electric improvements for a city owned property at 16220 Main Avenue. History The City of Prior Lake entered into a lease agreement with Pete & Jen Joas (Ur- banhalo) in September 2014 for the 720 square foot city owned retail space at 16220 Main Avenue SE. The tenants have leased the space since November 2014. The current lease term expires on October 31, 2018; however, there is mutual a two-year renewal term available. Current Circumstance The tenants have decided to change their focus from the previous boutique to an ice cream shop. As part of this transition, the electric services in the building need to be upgraded to handle the kitchen equipment and freezer needs. The tenants have obtained an estimate of $6,550 from Provo Electric, Inc. The estimate in- cludes a 200 AMP Meter, demolition of old wiring and installation of new wiring and outlets. The tenants have requested the city of Prior Lake assist with some of the estimated improvement costs. Conclusion The proposed improvements would not only benefit the current tenants but would also benefit future tenants of the city owned property. If the EDA feels it is appropriate, funds from the EDA Special Revenue Fund may be used. These funds are available for use by the EDA to accomplish certain economic development initiatives, including: economic development and redevel- opment loans and incentives; efforts to facilitate commercial development and re- development; and enhancing the character of commercial areas. If the EDA does not feel it is appropriate to utilize special revenue funds to assist this project, the commission may recommend the city to amortize the improvement costs over a lease renewal term or provide another assistance recommendation. FINANCIAL IMPACT: Potential costs related to financial assistance with electric upgrades. 2 ALTERNATIVES: 1. Motion and second to provide financial assistance from the EDA Special Rev- enue Fund in an amount deemed appropriate by the EDA to assist with electric upgrade costs at 16220 Main Avenue SE. 2. Motion and second to decline assisting with electric upgrade costs at 16220 Main Avenue SE. 3. Continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENT: 1. Alternative #1 1. Estimate for Electric Work Provo Electric Inc. 10725 Robert Lane Rogers, MN 55374 (763)807-2279 tpprovo@embarqmail.com ESTIMATE ADDRESS Pete Joas eat and treats 16220 main ave prior lake SHIP TO Pete Joas eat and treats 16220 main ave prior lake ESTIMATE #1802 DATE 06/18/2018 DESCRIPTION QTY RATE AMOUNT 50 Permit 1 245.00 245.00 51.750 200 AMP Meter w/Disconnect & Service Wire change out 1 1,700.00 1,700.00 135 Overhead Service Upcharge 1 245.00 245.00 1 Demo old wiring 1 500.00 500.00 1 wire new kitchen for outlets required for equipment(fridge, freezer, pizza, etc.) cut up floor where needed to get to and go thru the attic everywhere else 1 3,860.00 3,860.00 ****THIS IS ONLY AN ESTIMATE AND PRICE MAY ADJUST DUE TO UNFORSEEN CONDITIONS**** ****PROVO ELECTRIC IS NOT RESPONSIBLE FOR ANY FLOOR, CEILING OR SHEETROCK REPAIR**** TOTAL $6,550.00 Accepted By Accepted Date 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 9, 2018 AGENDA #: 9B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Credit River Township Agreement for Annexation DISCUSSION: Introduction On Monday, July 16th, the City Council will be considering an application to annex approximately 9.35 acres of land to the City of Prior Lake from Credit River Township. The purpose of this agenda item is for EDA to discuss the potential annexation as it relates to economic development and to allow review of the attached Agreement for Annexation. History Leira Properties LLC, has petitioned the City of Prior Lake to annex approximately 9.35 acres of land in Section 7 of Credit River Township pursuant to Minnesota Statutes 414.033, Subd. 2 (3). The property is adjacent to the City of Prior Lake southeastern limits and generally in the northwest corner of Credit River Township. Under Minnesota Statutes 414.033, Subdivision 2 (3), a municipal council may by ordinance declare land annexed to the municipality if : 1) the land abuts the municipality; 2) the area to be annexed is 120 acres or less, 3) the area to be annexed is not presently served by public wastewater facilities or public wastewater facilities are not otherwise available, and 4) the municipality receives a petition for annexation from all the property owners of the land. Current Circumstances During the application review process, city staff and Annexation Task Force members identified a few potential issues that should be addressed prior to making a recommendation to the City Council related to the annexation request. The primary issues related to, i) future intersection improvements at CH21/Revere Avenue including the future extension of Revere Avenue to 170th Street; ii) future land use and zoning designations; and iii) wellhead protection area and timing of the utility connections. The City Attorney has prepared the attached Agreement for Annexation of Whitney Property in Credit River Township to address the comments raised by city staff and Annexation Task Force members. It is staff’s recommendation the City Council approve the annexation of this parcel conditioned upon the property owner entering into the Agreement for Annexation with the City of Prior Lake. Conclusion There are several reasons the EDA may support approval of the annexation request, including:  An opportunity to secure right-of-way for a future extension of Revere Avenue to 170th street;  The ability to ensure protections for future development in this wellhead protection area;  The diversification of the city’s tax base through additional commercial development opportunities;  Ability to enhance the entrance to the city through commercial development and redevelopment; and  Capitalizing on the investment in public utilities available to serve this area. The intersection of Revere Avenue (CH87) and CH21 has long been identified by city and county officials as an intersection in need of functional and safety improvements. As the city’s industrial park grows and the annexed land to the south on Revere Avenue develops, this intersection will be a key egress and access point on County Road 21 when first entering the city. If annexed, the subject property would provide additional commercial/industrial property, which is needed in the City of Prior Lake. Prior Lake has approximately 35 acres of vacant shovel-ready commercial property and approximately 25 acres of vacant shovel-ready business park and industrial property. According to the 2017 Commercial and Industrial Demand Analysis completed for Scott County by Maxfield Research, Prior Lake has a demand for an additional 1.3 million square feet of retail, office and industrial development by the year 2040; this level of development will require approximately 140 acres of land to accommodate the projected demand. This land is contiguous to both the Welcome Avenue Industrial and Deerfield Industrial parks and a logical addition to the two. The site is located along the CH21 corridor and serves as a gateway into the city. The addition of this parcel to the City of Prior Lake would allow the city an opportunity to coordinate the types of land uses and architectural standards through the zoning ordinance to ensure a high quality commercial development as a focal point as residents and visitors enter and leave the community. Once annexation takes place, if the EDA and Council find it appropriate, the city may want to focus on assisting with the redevelopment of commercial/industrial properties near the CH21/Revere Avenue intersection. Due to the attached agreement referencing potential use of tax increment financing which may be available to assist with future intersection or site improvement costs and the probable development of commercial and/or industrial properties on this parcel, staff felt it would be appropriate for the EDA to review the Agreement for Annexation and provide a recommendation to the City Council related to the annexation application. ISSUES: While the action of a present council cannot bind a future council, it seems likely that the city’s only interest for future annexation in Credit River Township would be the parcels to the immediate north of this property, totaling about 38 acres, for many of the same reasons articulated above. FINANCIAL IMPACT: Approval of the annexation will allow the development of the property within the City limits, which will increase the City tax base. The property owner or future developer will be responsible for the costs related to any future utility extensions. ALTERNATIVES: 1. Motion and Second to recommend the City Council approve the annexation request, including recommended amendments, if any, to the Agreement for Annexation. 2. Motion and second to recommend the City Council deny the annexation request based on findings for support of denial. RECOMMENDED MOTION: ATTACHMENTS: Alternative No. 1. 1. Location Map 2. Agreement for Annexation ADELMANN ST SE EAGLE CREEK AV SE W E L C O M E A V S E Scott County GIS Ü 6025 170th Street East Annexation Location Map UPPER PRIOR LAKEGD(904) SPRING LAKEGD(912.8) LOWER PRIOR LAKEGD(904) MYSTICLAKENE BLINDLAKERD(948.7) ARTICLAKENE(906.7) MARKLEYLAKERD( ) HOWARD LAKENE(957.3) CRYSTAL LAKENE(943.3) RICE LAKENE(945) CLEARY LAKENE CAMPBELLLAKENE(Not Estab.) Scott County GIS SUBJECTPROPERTY SUBJECTPROPERTY 1 AGREEMENT FOR ANNEXATION OF WHITNEY PROPERTY CREDIT RIVER TOWNSHIP THIS AGREEMENT (“Agreement”) is entered into by and between Leira Properties, LLC, a Minnesota limited liability company (“Owner”) and the City of Prior Lake, a Minnesota municipal corporation (“City”). RECITALS: WHEREAS, Owner is the fee owner of property in Credit River Township located at 6025 170th Street E, Prior Lake, MN 55372 and legally described on attached Exhibit A (“Property”). WHEREAS, Owner has filed a petition with the City requesting that the City annex the Property pursuant to Minn. Stat. 414.033, Subd. 2 (3). WHEREAS, the Property is at the intersection of Highway 21, Highway 87 and 170th Street East and it is expected that the intersection will be re-constructed and possibly re-aligned within the next several years (“Intersection Project”). WHEREAS, the Property is located in the City’s wellhead protection district. WHEREAS, the City is willing to annex the Property upon Owner’s compliance with certain conditions as set forth in this Agreement relating to the Intersection Project and the development and use of the Property. WHEREAS, Owner agrees to comply with this Agreement and all conditions set forth herein. NOW THEREFORE, based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Recitals. The Recitals set forth above are incorporated herein. 2 2. Right-of-Way Dedication. Owner shall execute and convey to the City the right- of-way easement attached as Exhibit B, within 30 days of the execution of this Agreement. Upon completion of the Intersection Project, the City shall convey back to the Owner any unneeded right-of-way. In addition, upon completion of the Intersection Project, the City shall work with Scott County to determine if any of the existing County right-of-way to the west of the Property can be conveyed to the Owner and if so, will assist with the conveyance. 3. Tax Increment Financing. The City may use tax increment financing (“TIF”) on the Property to help fund the Intersection Project. Owner agrees to cooperate with the City in relation to any TIF funding and acknowledges that any such TIF funding shall be used for the Intersection Project or as otherwise directed by the City. 4. Development and Use of Property. a. Owner acknowledges that the City does not intend to connect the Property to sewer and water until the Intersection Project is complete. City hereby waives the one-year connection requirement set forth in City Code until the Intersection Project is complete. b. Owner acknowledges that the Property shall be developed only for commercial and/or industrial uses consistent with the Property’s location in the wellhead protection district. Any use or development of the Property shall be subject to all standard City review and approvals. 5. Annexation. Upon Owner’s execution of this Agreement and the recording of the Agreement with the Scott County Recorder’s Office, City shall file an ordinance annexing the Property with the Chief Administrative Law Judge. 6. Indemnification and Hold Harmless. The Owner shall indemnify, defend and hold the City, its Council, agents, employees, attorneys and representatives harmless against and in respect of any and all claims, demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties, and attorneys’ fees, that the City incurs or suffers, which arise out of, result from or relate to the annexation of the Property or this Agreement. The responsibility to indemnify and hold the City harmless from claims arising out of or resulting from the actions or inactions of the City, its Council, agents, employees, and representatives does not extend to any willful or intentional misconduct on the part of any of these individuals. 7. Binding Effect. This Agreement shall run with the Property and bind and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. 8. Severability. In the event any provisions of this Agreement shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereb y. 3 9. Waiver. Failure of either party at any time to require performance of any provision of this Agreement shall not affect its right to require full performance thereof at any time thereafter and the waiver by either party of a breach of any such provision shall not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of such provision. 10. Reimbursement of Fees and Costs. Any fees or costs incurred by the City associated with enforcing any of the terms and conditions set forth in this Agreement, including but not limited to City staff, engineering and attorney’s fees, shall be the sole responsibility of the Owner. The Owner agrees that if Owner fails to pay any invoiced amount within 30 days of receipt thereof, the City may assess the invoiced amount against the Property. 11. Governing Law. The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations and performance obligations between the parties. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts located within Scott County, Minnesota. Litigation, however, in the federal courts involving parties herein shall be in the appropriate federal court within the State of Minnesota. 12. Entire Agreement. This Agreement constitutes the final and complete agreement of the parties and shall supersede and replace any prior oral or written agreements between City and Owner. Any subsequent modification must be in writing signed by both parties. (Signatures Appear on Next Page) 4 IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands as of the date set forth above. LEIRA PROPERTIES, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2018 by ________________ the _______________________ of Leira Properties, LLC a Minnesota limited liability company on behalf of the company. Notary Public 5 CITY OF PROIR LAKE By: Kirt Briggs Its: Mayor By: Frank Boyles Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2018 by Kirt Briggs, Mayor and Frank Boyles, City Manager of the City of Prior Lake, a Minnesota municipal corporation on behalf of the corporation. Notary Public This Instrument Drafted By: Hoff Barry, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, MN 55344 6 Exhibit A Legal Description of Property The West 919.00 feet (as measured at right angles) of that part of the North half of the Northwest Quarter (N ½ of NW ¼) of Section 7, Township 114, Range 21, Scott County, Minnesota, lying North of the Northerly right of way line of the Chicago, Milwaukee and St. Paul Railway Company, Scott County, Minnesota. (PID 049070010) 7 Exhibit B Right-of-Way Easement PERMANENT EASEMENT Leira Properties, LLC, a Minnesota limited liability company (“Grantor”) hereby grants and conveys this _________ day of ______________, 2018 to the City of Prior Lake, a municipal corporation organized under the laws of the State of Minnesota (“Grantee”) a permanent easement (“Easement”) for the following uses and purposes and subject to the following terms and conditions on, over, under and across real property in the County of Scott, State of Minnesota legally described on attached Exhibit A (“Easement Parcel”). 1. Uses and Purposes. The Easement shall be for right-of-way, drainage and utility purposes. Grantor hereby conveys all grasses, shrubs, trees and natural growth on the Easement Parcel. Grantee shall have the right to use and remove all earthen materials, structures, improvements and obstructions which lie within the boundaries of the Easement Parcel, including the right of clearing the Easement Parcel to allow for the use of the land as stated herein. The Easement includes the right of the Grantee, its contractors, agents, and employees to enter the Easement Parcel at all reasonable times for the purpose of locating, constructing, reconstructing, operating, maintaining, inspecting, altering and repairing within the Easement Parcel public right-of-way, drainage and utilities or other public facilities or improvements of any type that are not inconsistent with right-of-way, drainage and utility use. The Easement also includes the right to cut, trim, or remove from the Easement Parcel trees, shrubs, or other vegetation as in the Grantee's judgment unreasonably interfere with the Easement or facilities of the Grantee, its successors or assigns. 2. Nonexclusive. The Easement shall be nonexclusive; provided, however, this Easement shall be prior to and superior to any other easement hereinafter granted. Any future easement shall be subject to and subordinate to, and shall not interfere with, the Easement without the consent, in writing, of Grantee. 3. Duration of Easement. The Easement shall be perpetual, shall run with the land, shall be binding upon Grantor and its successors and assigns and shall be for the benefit of Grantee and its successors and assigns. 8 WITNESS WHEREOF, Grantor has caused these presents to be executed as of the day and year aforesaid. LEIRA PROPERTIES, LLC By: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2018 by ________________ the _______________________ of Leira Properties, LLC a Minnesota limited liability company on behalf of the company. __________________________________ Notary Public Drafted By: Hoff Barry, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, MN 55344 9 EXHIBIT A Legal Description for Easement Parcel [TBD]