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Home My WebLink About12 10 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, December 10, 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/December 10, 2018 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. November 13, 2018 4. CONSENT AGENDA A. Development Update (11/30/2018) 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS A. None 7. PUBLIC HEARINGS A. None 8. OLD BUSINESS A. Construction Customer Attraction Assistance B. Downtown Parking Directional Signs C. Economic Development Website Update 9. NEW BUSINESS A. None 10. OTHER BUSINESS A. Staff Updates a. Downtown Property Offers 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 November 13, 2018 1. CALL TO ORDER PRESIDENT CHROMY called the meeting to order at 4:00 p.m. Present were Chromy, Braid and Briggs. Also present were Executive Director Boyles, Community Development Director McCabe and Planner Schwabe. Guest present, Matt Schafer. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BRAID, TO APPROVE THE AGENDA. Ayes by Chromy, Braid and Briggs. The motion carried 3-0. 3. APPROVAL OF MEETING MINUTES A. October 8, 2018 MOTION BY CHROMY, SECONDED BY BRIGGS TO APPROVE THE OCTOBER 8, 2018 MEETING MINUTES. Ayes by Chromy, Braid and Briggs. The motion carried 3-0. 4. CONSENT AGENDA A. Development Update (10/31/2018) B. EDA Revenue & Expenditure Report MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Braid and Briggs. The motion carried 3-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PRESENTATIONS None 7. PUBLIC HEARING No Public Hearings 8. OLD BUSINESS None 9. NEW BUSINESS A. Consider Acquisition of Downtown Properties (verbal report) MCCABE shared that the City was contacted by an agent who was listing a property at 4528 Colorado Street to see if the city may have interest in purchasing that property. In addition, the agent informed staff the adjacent property owner at 4540 may also have interest in selling his property. McCabe followed up on both properties and discussed potential acquisition prices with the EDA. SCHAEFER explained that he has had contact with some of the property owners along that section of Colorado Street but has not been able to speak with all. He shared that redevelopment of this area would be a great way to join the Duluth Street area with Downtown. EDA members discussed their potential interests in acquiring the Colorado Street parcels. BRAID stated that the parcels in the area of Colorado Street are a natural progression of Downtown. 2 CHROMY shared concerns regarding acquisition of properties and length of time the City would be interested in retaining them before they would be redeveloped. EDA suggested staff should attempt to contact the adjacent property owner regarding their plans for the property. MOTION BY BRIGGS, SECONDED BY CHROMY DIRECTING STAFF TO PREPARE OFFER LETTERS FOR 4528 COLORADO STREET AND 4540 COLORADO STREET. Ayes by Chromy, Braid and Briggs. The motion carried 3-0. SCHAEFER discussed plans for the lots owned by Prior Lake Revival LLC west of Duluth Ave. He shared two concept plans for the construction of a second multi-tenant, single-story structure (Phase II of the Prior Lake Re- vival project). The proposed building may be approximately 10,000 sq. ft. with 6-8 lease spaces. He shared that in his experience, the demand for leased space is in the 750-1,200 sq. ft. size and the desired lease rate is in the $18-19 per sq. ft. range. SCHAEFER described the construction methods for a building of 25 feet in height (steel structure) as opposed to a building averaging 18 feet (stick frame) and inquired about City contribution opportunities. MCCABE shared that in the past, the City Council had approved a recommendation from the EDA for tax abate- ment for a period for the Prior Lake Revival Phase I project. He explained that the EDA assisted the PLate project with use of Downtown TIF Fund Reserves and EDA Reserves for sidewalk replacement, lighting, soil corrections, etc. EDA directed Staff to work with Schaefer to explore possible assistance options which would be brought before the EDA again at a future meeting. B. Downtown Parking Directional Signs MCCABE shared information on proposed public parking sign designs, possible locations and sign types being utilized in other communities. He stated that these types of signs would be an eligible expense for EDA Special Revenue Funds if the EDA wanted to pursue a parking wayfinding signage plan. BRAID stated that he preferred blue colored signs with the logo or a “P” to indicate parking. Discussion ensued regarding location, the use of existing posts when available and whether the signs could be internally it, possibly by solar. BRAID suggested that in addition to the proposed parking/wayfinding signage on the public parking sign locations map, a sign on the southeast corner of the Arcadia Street/Colorado Street intersection may be beneficial. EDA members requested staff complete additional research into sign types, costs and locations to be presented at the next EDA meeting. C. Construction Customer Attraction Ideas MCCABE explained that BRAID and CHROMY attended the BEC meeting on October 25, 2018. Discussion was held at the BEC meeting regarding the creation of a “Big Game” type committee with representatives from the City, Chamber of Commerce and others to lead customer attraction efforts during upcoming construction activities. BRAID stated that the creation of a subcommittee is a good idea. CHROMY commented that time is of the essence. MCCABE stated that perhaps conversation should be had with the Chamber of Commerce to define who will be taking the lead and discuss sponsorship levels, funding, etc. 3 BRIGGS shared that Bolten & Menk assisted the City of Hopkins with communications type activities. BRIGGS suggested the City Council may want to consider utilizing the remaining funds originally allocated for communication of the Duluth Avenue / Hwy 13 project for customer attraction efforts in 2019. 10. OTHER BUSINESS A. Staff Updates McCabe informed the EDA that staff presented an offer to purchase a downtown property, pending EDA review and approval, which was not accepted by the property owner. B. Commissioner Comments None. 11. ADJOURNMENT MOTION BY BRIGGS, SECONDED BY BRAID TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 5:25 p.m. Ayes by Chromy, Braid and Briggs. The motion carried 3-0. ___________________________ Frank Boyles, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: December 10, 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 November 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: December 4, 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 Nov. 30, 2018. Number of Permits Declared Value Number of Permits Declared Value Number of Permits % Increase / (% Decrease) Declared Value % Increase / (% Decrease) Single Family Dwellings 106 $36,961,853.00 72 $25,591,000.00 47.22 44.43 Townhouses (# units)72 $12,357,064.00 10 $1,940,000.00 620.00 536.92 Multiple Units 0 $0.00 1 (68 Units)$8,787,000.00 (100.00)### New Commercial Industrial & Commercial 4 $2,227,652.00 12 $13,487,500.00 (66.67)(83.48) Residential 846 $6,641,138.00 828 $5,411,300.00 2.17 22.73 Industrial & Commercial 29 $8,148,030.00 23 $1,173,900.00 26.09 594.10 ⧫Mechanical 637 $0.00 592 $0.00 7.60 n/a ⧫⧫Mechanical (SF & TH)712 $0.00 332 $0.00 114.46 n/a TOTALS 2406 $66,335,737.00 1869 $56,390,700.00 28.73 17.64 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: December 10, 2018 AGENDA #: 8A PREPARED BY: PRESENTED BY: Casey McCabe, Community Development Director Casey McCabe AGENDA ITEM: CONSTRUCTION CUSTOMER ATTRACTION ASSISTANCE DISCUSSION: Introduction The purpose of this agenda item is to discuss customer attraction efforts and decide what level the EDA wishes to participate with the Chamber of Commerce and other organizations to attract customers to the downtown and South Lake Village area in 2019. History The EDA has previously discussed opportunities to assist with customer attrac- tion efforts in the downtown and South Lake Village areas during 2019 construc- tion activities. Current Circumstances Bolton & Menk staff have provided examples of a few promotions and events that have occurred during construction activities in other communities, including: DEALS/PROMOTIONS ➢ Construction Bucks (given out by stores or chamber as purchases are made to be used at downtown businesses or to buy special items) ➢ Seasonal Items available for a limited time! - only for construction (“orange cone latte” “construction barrel brew” “bulldozer brew” “Skid Loader Smoothie” specialty t shirts) ➢ Construction Coupons/Construction Related Promotions • “Use the Back-Door Promotion” – City gave each business $500 to spend on back door improvements as customers would have to use that entry during construction. (this would need to be adapted to the needs in Prior Lake) • Collective Construction Coupon Book – each business downtown cre- ates 1-2 offers to add to collective coupon book (valid for construction season, include map with detour route) • Linked Coupons – buy X at store 1 get Y at store 2. ➢ Group Advertisements (go in together as area businesses for newspaper/ra- dio ads – “downtown is open for business”) ➢ Construction related marketing (logo with construction hat) extra signage (to be worked out with City permitting requirements) ➢ Permitting process easier to have businesses at Farmers market outside of downtown (sampling of store products at Farmer’s markets and a “here’s where you can find us”) 2 ➢ Discount for walking or biking (to help cut down on construction congestion) EVENTS ➢ Special Community Events promoting downtown businesses as a group – “The Main Event” (Redwing, MN) ➢ Roundabout Rodeo – couple community initiatives with project initiative to create a weekend/Saturday event getting people downtown. This specific event will be towards the end of construction and can double as a celebra- tion. ➢ Host a downtown crawl – ticketed entry to get into crawl, ticket gets you in and a few small items along the way, deals to encourage additional pur- chases. (divide proceeds among participating businesses) • Cocktails at local boutiques, appetizer at Edelweiss, activity at jewelry store/auto mechanic, dinner at restaurant X, dessert at restaurant Y, after party at brewery. ➢ Joint Open House/Chamber event for “what to expect during construction” – team up with Bolton & Menk for an open house event, right before construc- tion, to not only share project staging information, but also for businesses to promote special events/deals they will have during construction. We could already start the giveaways at this event or do a “selfie with a project team member or business owner” to be entered in a raffle for a prize. MISCELLANEOUS ➢ Selfie raffle – Take a selfie as you make purchases at downtown businesses and share with the #ToBeDetermined for a chance to win prizes! ➢ Photo contest – Take a photo of downtown during construction and best photo wins a prize. Could have different themes each month. ➢ “Hiking Club/Passport” – initiative like DNR Hiking Club or State Park Pass- port where each store has a special code or stamp that you receive when you make a purchase at their business. After X amount of codes/stamps you can redeem a prize from the City or Chamber. • There could also be a grand prize at the end of construction for whoever has collected the most stamps. ➢ Construction Medallion Hunt – Similar to the City’s annual medallion hunt for Lakefront Days. Participants receive clues from downtown businesses after purchases are made. • Purchases can be on a curve – i.e. one cup of coffee may not unlock the clue, but X dollar amount or number of purchases needed. ➢ There could be various twists to the above without the medallion as well. The chamber or city could have intermittent prizes or a grand prize – winners/par- ticipants are promoted on social media posts. Stores could give: • Clues to solve a riddle • Letters to solve wheel of fortune puzzle • Clues to find a key – have a box at city hall with the prize inside. Decoy keys could also be hidden around town that participants could try on the safe. ➢ Cartoon maps showing detour route for each stage. 3 Conclusion There are several events already scheduled for 2019 that will attract customers to the Downtown and South Lake Village area, including: Polar Palooza, January 24-27 Spring-A-Ding, Saturday, May 4 Music in the Park, Friday, May 17 Penny Carnival, Friday, June 14 Music in the Park, Friday, June 14 Lakefront Music Fest, July 12 & 13 Lakefront Days, August 8-10 Music in the Park, Friday, August 16 Fall Frenzy, Saturday, October 5 Candy Crawl, Thursday, October 31 DecemBRRR Dazzle, Friday, December 6 Fire Department annual dinner in September Farmer's Markets on Saturdays Multiple Ladies Night Outs Staff is recommending the City of Prior Lake and the Chamber of Commerce create a calendar of all downtown and South Lake Village area events to be shared with the downtown businesses. These events, plus events hosted by the downtown businesses, will generate customer traffic. The EDA, BEC, Chamber of Commerce, Downtown Businesses, South Lake Vil- lage Businesses or other organizations may want to select and take ownership of one of the promotions or events suggested above to further increase the amount of customer traffic during construction activities. ISSUES: Staff believes that this effort can be more effective if various organizations par- ticipate financially and physically. However, there will be a need for one agency to organize and take the lead in coordinating the overall effort. The staff is not able to undertake this effort but could provide assistance. If the EDA wishes to participate, their efforts should be complimentary to that of the downtown business owners, Chamber of Commerce, BEC or other groups who are attempting to generate customer traffic in the downtown area during construction. FINANCIAL IMPACT: Some of the proposed customer attraction efforts may require financial support. The EDA may wish to establish a budget from the 2019 EDA Professional Ser- vices Fund to assist the Chamber of Commerce, BEC or other organizations with activities which generate additional pedestrian traffic to the commercial areas of the community during 2019 construction activities. ALTERNATIVES: 1. Motion and second to have staff arrange an organizational meeting of vari- ous groups to see if events can be identified, adopted and funded with the EDA acting in a coordinating role. 2. Assume responsibility for certain events only and select an additional event(s) to be hosted by the EDA in 2019 and establish a budget from the 4 2019 EDA Professional Services Fund to assist with activities which gener- ate additional pedestrian traffic to the commercial areas of the community during 2019 construction activities. 3. Motion and second to decline establishing a budget at this time. 4. Motion and second to continue discussion at a future meeting. RECOMMENDED MOTION: As determined by the EDA. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: December 10, 2018 AGENDA #: 8B PREPARED BY: PRESENTED BY: Casey McCabe, Community Development Director Casey McCabe AGENDA ITEM: DOWNTOWN PARKING DIRECTIONAL SIGNS DISCUSSION: Introduction The purpose of this agenda item is to follow up on direction provided by the EDA during their last meeting related to off-street parking directional signs throughout the downtown. History During the October EDA meeting, city staff informed the EDA that a couple down- town businesses requested downtown off-street parking directional signage be in- stalled to help customers and visitors find off-street parking areas. The EDA di- rected staff to bring parking wayfinding signage options for the EDA to consider at their November meeting. During the November meeting, EDA members re- quested staff complete additional research into sign types, costs and locations to be presented in December. Current Circumstances In 2014, the City of Prior Lake entered into a professional services agreement with SRF to complete a downtown parking study. One of the study findings was the City does not have adequate signage to guide visitors to the public parking areas. In response to this finding, the EDA had Public Parking signs installed at the en- trances to nine municipal parking lot locations in the downtown area; the nine lo- cations are shown on the first attachment. The next step to help identify these parking areas is to add public parking directional signs throughout the downtown area. The directional signs will indicate where off-street public parking is available. Seven wayfinding signs, including two additional locations suggested by the EDA in November, are proposed at an approximate cost of $100 each, installed; for a maximum cost of $700. This type of signage was included as an Economic De- velopment Initiative in the 2018 EDA Business Plan and as such, is an eligible use of EDA Special Revenue Funds. The EDA Business Plan states, “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 rede- 2 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.” Conclusion The Public Parking Lot signs installed by the EDA have been an effective tool to communicate which parking lots are available to the public. Additional parking directional signage will help visitors to Prior Lake’s downtown find off-street park- ing stalls. ISSUES: Parking directional signs should be both functional and aesthetically pleasing, so they do not detract from the charm of the downtown area. Staff has researched placing illuminated signs on existing light posts. After consulting with the Public Works Director, staff recommends not pursuing that type of sign currently due to possible location changes because of road improvement projects and potential light pole location changes in 2019 and 2020. FINANCI AL IMPACT: City staff estimates the total cost of seven parking directional signs, including in- stallation, to be under $700. ALTERNATIVES: 1. Motion and a second to allocate up to $700 from the 2018 EDA Professional Services Fund for acquisition and installation of seven public parking direc- tional signs throughout downtown Prior Lake. 2. Motion and a second to table action and direct staff to provide additional infor- mation. RECOMMENDED MOTION: ATTACHMENTS: Alternative #1. 1. Proposed Wayfinding Sign Locations 2. Proposed Parking Wayfinding Sign Design Public Parking Sign Locations Public Parking Sign Proposed Parking Wayfinding Sign Proposed Parking Sign Design 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: December 10, 2018 AGENDA #: 8C PREPARED BY: PRESENTED BY: Amanda Schwabe, Planner Amanda Schwabe AGENDA ITEM: ECONOMIC DEVELOPMENT WEBSITE UPDATE DISCUSSION: Introduction The creation of an Economic Development website is underway with support from the EDA, engagement of a website vendor, formation of a subcommittee, content development and finalization. History During the July 9, 2018 EDA meeting, the EDA directed staff to obtain quotes from web development vendors for a separate economic Development website. Three quotes were received, and the EDA directed Staff to engage a vendor. Designwrite Studios was engaged for this project who then development website examples for review by the Economic Development Website subcommittee. The Subcommittee met twice to discuss layout and content. Staff then worked with Designwrite Studios to incorporate content and supporting documentation for the website including, but not limited to photos and language. Current Circumstances Staff is working with Designwrite Studios to finalize the website, which is antici- pated to go live on January 1, 2019. Prior to going live, staff will participate in training, so information can be updated and simple modifications to pages can be completed in house if necessary in the future to meet the needs of the EDA. Conclusion The Economic Development website is nearing completion and is expected to go live on January 1, 2019. ISSUES: None ALTERNATIVES: Information only. RECOMMENDED MOTION: ATTACHMENTS: Information only. None