HomeMy WebLinkAbout2001 Memos & Meetings
February 14, 2001
Re: Business Advisory Council
Dear Sir or Madam:
An appointed Economic Development Authority (EDA) previously guided economic development
activities within the City of Prior Lake. This committee consisted of two members of the City Council and
three additional residents. For a number of reasons, the City Council determined that this structure was
neither efficient nor effective to the level desired. Consequently, the Council voted to restore the authority
and responsibility for economic development to the City Council, and to replace the EDA with a larger
body of business-experienced individuals to serve as advisors to the Mayor and Council.
It is the Council's intention to create a Business Advisory Council consisting of individuals with business
experience, and who reside in Prior Lake or who operate a business in Prior Lake. The committee would
be asked to assist the City Council with tasks such as identifying and contacting companies or individuals
as candidates for investment in Prior Lake, and developing a plan to market Prior Lake to prospective
investors. They would also be expected to provide comprehensive business advice to the City Council as
requested.
The business advisory council would be expected to meet formally, but infrequently (possibly 4 times per
year). However, individual members or the total committee would be solicited to provide advice to the
City Council as circumstances warrant. The intention is to efficiently utilize a minimum amount of
committee members' time.
The purpose of this letter is to solicit your recommendations for candidates for this committee. Anyone
who is interested should complete the attached application and return it to either City Manager Frank
Boyles, or to me at City Hall. It is then my intention to make appointments to the committee, subject to
City Council approval.
If you have any questions regarding the committee's responsibility or time commitments, you are
welcome to call me at 440-1069. I hope you will give serious consideration to helping us staff this
committee.
Kind Regards,
/S/
Wesley M. Mader, Mayor
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNllY EMPLOYER
June 11, 2001
TO: MAYOR, CITY COUNCIL, and BUSINESS ADVISORY COUNCIL
SUBJECT: First Meetinq Date
This letter confirms that the first meeting of the Business Advisory Council will take place at Brm on
Monday, .IImp 11, 2QQ1 at the Wilds Clubhouse. The meeting should conclude no later than 9pm. The
meeting is a formal business dinner meeting.
The objectives of the first meeting are shown on the attached agenda. While I tried to set the meeting
based upon the survey results, some of you may be unable to attend. I will assume you will attend
unless you advise Kelly Meyer at (952) 447-9803 to the contrary by Friday, June 8, 2001. I look
forward to seeing each of you at this important inaugural meeting.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
1. Social Hour .......................................................... 6pm - 6:30pm
2. Dinner ............................................................. 6:30pm - 7:30pm
3. Business Meeting ........................................................... 7:30pm
a. Introductions
b. Opening Comments (Mayor Mader)
c. Procedures and Methodology
d. City Council! Economic Development Strategy and Plans
e. Expectations of BAC
f. Strategic Issues for Consideration by BAC
4. Adjourn................................................................................ 9pm
1:\ADVBODYS\EDA\01 general\1 st mtg.DOC
7''eOm de 1)~ 05 Mayor Wes Mader
September 14, 2001
TO: BUSINESS ADVISORY COUNCIL MEMBERS
SUBJECT: Invitation to the September 19, 2001 Prior Lake Chamber of Commerce Meetinq
I will be addressing the Prior Lake Chamber of Commerce at their Wedr'lesd;lY, September 1Q, 2001
membership meeting at noon. I will be outlining the City Council's economic development policy and
the role which the Business Advisory Council will be playing.
I consider this to be an important opportunity to introduce the Business Advisory Council to business
persons in the community as well as an opportunity to familiarize attendees with the City Council's
development plans.
Business Advisory Council members are certainly welcome to attend the meeting. We will make the
arrangements for your attendance and lunch if you would contact Kelly Meyer at (952) 447-9803 by
4:30pm on Monday, September 1th.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Contact List
Bernard Carlson
16281 Main Ave.
Prior Lake, MN 55372
Ph. 651-484-7769 (hm)
952-447-2240 (wk)
David Dornbush
4688 Lords Street NE
Prior Lake, MN 55372
Ph. (952) 447-8494 (hm.)
(952) 447-8420 (wk.)
Email: dadombushOaol.com
Fax: (801) 730-7452
MadIson Groves
16410 Park Avenue S.E.
Prior Lake, MN 55372
Ph. (952) 440-8929 (hm.)
(612) 642-8847 (wk.)
(612) 341"()232 (fax)
Email:
Madison.groveS@us.wmmerc
er.com
Bob Jader
14962 Pixie Point Circle
Prior Lake, MN 55372
Ph. (952) 447-2716 (hm.)
(952) 447-2807 (wk.)
Email: bjaderGusweslnet
Rebecca Janisch
13928 Drommond Trail
Apple Valley, MN 55124
Ph. (952) 423-5806 (hm.)
(952) 226-7400 (wk.)
(952) 447-6016 (fax)
Email:
Rebecca.janisch@intev.al\,;lle
com. com
Ch"ene Jasan
15320 Edgewater Circle N.E.
Prior Lake, MN 55372
Ph. (952) 440-5037 (hm.)
(952) 837-3348 (wk.)
(952) 831-1268 (fax)
Email: cjasan@bossardlcom
Business Development Council
Layton Kinney
14458 Shady Beach Trail
Prior Lake, MN 55372
Ph. (952) 4454149 (hm.
& wk.)
(952) 496-2791 (fax)
Email:laytonk@aol.com
Ellen Mathison
22633 Balsa Circle
Prior Lake, MN 55372
Ph. (952) 461-2747 (hm.)
(952) 447-9705 (wk.)
(952) 447-9747 (fax)
Email: Ellen.Mathison@
Marquette.com
Paul VI.-eck
16151 Main Ave.
Prior Lake, MN 55372
Ph. (952) 445-4663 (hm.)
(952) 440-5620 (wk.)
(952) 440-5627 (fax)
Stephen Kramer
3051 Maple Drive
Prior Lake, MN 55372
Ph. (952) 447-6183 (hm.)
(952) 447-3516 (wk.)
(952) 447-3561
Email:
drkramer@kramerchiro.com
Chrtstopher Dahl
15259 Wilds Parkway
Prior Lake, MN 55372
Ph. (952) 226-2269 (hm.)
(507) 333-3991 (fax)
Bill Packer
4633 Lords Street N.E.
Prior Lake, MN 55372
Ph. (952) 440-2222
(952) 447-6233
Email: wmpacker@cs.com
EDA Commissioners
Mayor Wet Mader
3470 Sycamore TrI. SE
Prior Lake, MN 55372
Ph. 952-440-1069
Email:
wmader@cityofpriorlake.com
Jim Ertcson
4544 Pondview TrI. SE
Prior Lake, MN 55372
Ph. (952) 440-6126 (hm.)
(612) 806-3119 (wk.)
Email:
ericsonjim@cityofpriorlake.com
.run Petersen
3338 Todd Road SW
Prior Lake, MN 55372
Ph. (952) 440-7093
Cell (952) 750-5556
Email: maste....a1tjim@aol.com
Mike Gundlach
16961 Simpkins Circle SW
Prior Lake, MN 55372 Ph. (952) 447-7424
Email:
mgundlach@cityofpriorlake.com
Joe Zleska
5316 Hampton Sl NE
Prior Lake, MN 55372
Ph. (952) 496-1009 (hm)
(952) 403-6035 (wk)
Email:
jzieska@cityofpriorlake.com
CITY FAX (952) 447....245
.-:
CITY OF PRIOR LAKE
16200 Eagle Creek Ave. S.E.
Prior Lake, MN 55372
Ph. (952) 447-4230; Fax (952) 447-4245
7 j; 0 /2-2---'
To:
Business Advisory Council Members
From: Mayor Mader and City Coundlmembers
By Fax or E-Mail:
Pages: 1
Date: 9120/01
CC:
Frank Boyles, City Manager
Ralph Teschner, Rnance Director
Re: Business Advisory Council Meeting
X Uraent
o For Review 0 Please Comment X Please Realy
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The second meeting of the Prior Lake Business Advisory Council is scheduled for 6om. Mondav,
October 22. 2001 at The Wilds Clubhouse. The agenda for the meeting is as follows:
6:15pm
· Social Hour
7pm
· Dinner
8pm
· Review BAC Member Notebooks
· Review Lakefront Plaza Financing
Alternatives (See attached memo)
· Solicit BAC member input on appropriate
method(s) for encouraging fac;ade
improvements Downtown.
9:30pm
· Adjourn.
Please call, fax or E-mail Kelly with your confirmation by Fridav. October 19. 2001 so we can make
dinner arrangements.
It would be helpful for you to review the BAC notebook items prior to the October 2200 meeting. If you
would like to pick up your notebook, feel free to do so any business day between 8am and 4:30pm by
stopping by the first floor reception desk at City Hall. If alternate arrangements need to be made, please
contact Kelly directly at (952) 447-9803, or by E-mail atkmeyer@cityofpriortake.com.
THANK YOU!
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7''eOm de 1)~ 05 : ~ ~ ( ~Oy . :5
October 3, 2001
TO: MAYOR MADER
SUBJECT: Assistance for Lakefront Plaza
At the September 17th work session, Ralph outlined the funding alternatives for the Lakefront Plaza
project. This memo is intended to further describe each method of assistance. Before doing so, it is
important to innumerate what the staff understands the City Council's objective to be:
1) At minimum, the Council desires to provide the $952,000 the developer needs to proceed with
this $11.5 million project.
2) Ideally, the funding method used would also reimburse the City for its $700,000 streetscape /
infrastructure investment.
3) Taxpayer money is exposed to minimum risk.
4) The City does not lose any money in the transaction.
The three funding assistance alternatives are:
~~_VOII-GOT;lY Inr.rAment Finanr.ing
Rusty Fifield has calculated that even with the new tax laws, pay-as-you-go TIF could provide the
developer $952,000 and partly reimburse ($427,800 of $700,000) the City for streetscape /
infrastructure investment. Ralph has reviewed Rusty's assumptions and believes they are
conservative.
Advantages: The developer's financial needs are fulfilled. Since the hearing has been held, this is
probably the fastest method, which is a concern of the developer. The risk is fully on the developer. No
City money is spent.
Disadvantages: The City would have to bear some of the cost of the $700,000 streetscape
improvements, and would be re-paid over 20 years.
Variation: The Council could contribute $950,000 from revenues and reimburse itself through TIF.
~~_Vnll-~O T;lY Inr.rAmAnt Fin;lndno Ph~$ Condrllr.tinn I ~
The City becomes a partial project financier by providing $3.5 million of the anticipated 36 month $9.5
construction loan. (The developer will have a $2 million equity position.) The bank provides the
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
remainder of the loan and secures the total investment. The bank services the loan and disburses
payments to the City. The developer receives assistance through the difference between the interest
rate charged by the City and the interest rate offered by commercial borrowers. This generates
$350,000 in assistance. To be effective it must be paired with tax increment financing. The interest
reduction provides the developer with $350,000 of the $952,000 the developer needs. The remainder
($602,000) plus the City's investment ($700,000) is reimbursed over 20 years by the TIF.
Advantages: The developer and all of the City's financial needs are fulfilled. The City and bank form
public/private partnership. Part of the developer's assistance is provided upfront in the form of the
interest reduction.
Disadvantages: There is some question whether the bank will accept $9.5 million in risk with only $6
million investment return. This transaction is more complex and involves another party. $3.5 million of
the City's reserve is at risk. A precedent is established. The "gap" between the City interest rate and
the commercial rate could decline reducing the funding benefit available from this source.
Bondinq
The City sells bonds for the City contribution to the developer. The developer has use of the funds
immediately. The bonds are re-paid over 20 years by a combination of pay-as-you-go TIF and the
creation of a housing improvement district. With the district, the eighty homeowners become
responsible for paying any shortfall in reimbursing the bonds over the 20 year period. The
infrastructure improvements would be advanced from various City funds (i.e. trunk reserve fund, water
& sewer utility fund).
Advantages: The developer receives their money "upfront". The full amount desired is provided to the
developer, and a significant portion of the City's infrastructure investment is paid back over time. No
City reserve money is at risk. The debt is guaranteed by those who most benefit from it. In order to
minimize the City's contribution risk, the dollars would be most likely be paid out at the time
construction is completed.
Disadvantages: Some may perceive the housing improvement district as unacceptable and elect not to
purchase a unit in this development because of the "shortfall pledge". The bonds are not tax exempt
which significantly restricts the benefit of this approach.
Please let Ralph or I know if you have any questions.
I :\FRANK\MEMOS\COU NCIL \01 \Lakefront Plaza Financing. DOC
Business Advisory Council
Inaugural Meeting - Presentation Overview
Opening Comments
1 . Appreciation
2. Group diversity (men and women, downtown business owners. corporate executive
experience, technology/telecom connection, banking/finance, either residents in Prior Lake or
having business activity in Prior Lake.)
,.-.
Procedure / Methodology
1. Informal advisory group to the City Council (no bylaws, no votes, no minutes, no pay)
2. Procedures and methodology will reflect a respect for BAC members' time.
3. Quarterly meetings
4. BAC will be regularly apprised of City Council economic development strategy and plans.
5. BAC will be requested to address strategic issues, as a group and individually.
City Council Economic Development Strategy and Plans
1. The City Council supports Economic Development, but with the following qualifications:
. City financial support to be made available without increasing taxpayer burden (reference
Minneapolis / Target and Chanhassen arlicles)
. Financially supported projects must address City priorities or provide needed benefits to
the City in addition to tax revenue (i.e. senior housing, clean-up of blight, high quality
employment, highly desired services, etc.).
2. The City is a potential buyer of property for redevelopment
. when available at market value
. when not available at market value, but required to accommodate a redevelopment or
when required to clean up blight.
. purchases will be privately negotiated by the City Manager, or by an individual he may
designate from the Council, BAC or staff.
,,--
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNIlY EMPLOYER
3. As a general rule, condemnation will be used only when necessary to acquire property
required for infrastructure such as streets or water/sewer utilities.
r-.,
......
Expectations of the Business Advisory Council
1. BAC members will individually and as a group offer objective advice relative to overall
economic development strategy and plans, and on specific projects.
2. BAC members will do their best to attend each quarterly meeting.
3. BAC members are encouraged to contact the Mayor and Council members with suggestions
and observations.
4. BAC members are expected to support approved City Council policies and are encouraged to
be spokespersons to the community.
5. BAC members will initiate or assist in the initiation of contact with potential investors in projects
in Prior Lake.
Strategic Issues for Consideration by BAC
1. How to motivate property owners in Downtown to upgrade their properties (reference the City
Manager's objective)
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