HomeMy WebLinkAbout05 13 2019 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, May 13, 2019 – 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/2019/May 13, 2019
1. CALL TO ORDER
2. APPROVAL OF AGENDA
3. APPROVAL OF MEETING MINUTES
A. March 11, 2019
4. CONSENT AGENDA
A. Development Update (4/30/2019)
B. EDA Revenue & Expenditure Report
5. REMOVED CONSENT AGENDA ITEMS
6. PRESENTATIONS
A. None
7. PUBLIC HEARINGS
A. None
8. OLD BUSINESS
A. MN Citizens for the Arts Speaker
9. NEW BUSINESS
A. EDA Funding Options
B. Downtown Storefront Improvement Program
10. OTHER BUSINESS
A. Staff Updates (verbal)
a. EDA Agenda Review Meetings
b. MVSS Update
c. Downtown Property Listing
d. Downtown Redevelopment Update
B. Commissioner Comments
a. ‘Community Partner’ Designation
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 March 11, 2019
1. CALL TO ORDER
PRESIDENT CHROMY called the meeting to order at 4:00 p.m. Present were Chromy, Boucher-Hoese, Sheehan-
Kerber, Braid and Briggs. Also present were Executive Director Plante, Community Development Director McCabe and
Planner Schwabe. Guests present were CEC members Alexandra Matyja, Lori Olson, Annette Thompson, Marsha Diers,
Sarah Watters, Jessica Weber, Isabelle Belter and representatives from Mana Brewing.
2. APPROVAL OF AGENDA
MOTION BY BRAID, SECONDED BY SHEEHAN-KERBER, TO MOVE AGENDA ITEM 9A TO THE BEGINNING OF
THE MEETING AND APPROVE THE AGENDA. Ayes by Chromy, Boucher-Hoese, Braid, and Sheehan-Kerber. The
motion carried 4-0 (Briggs was absent).
3. APPROVAL OF MEETING MINUTES A. February 11, 2019
MOTION BY SHEEHAN-KERBER, SECONDED BY BOUCHER-HOESE TO APPROVE THE FEBRUARY 11, 2019
MEETING MINUTES. Ayes by Chromy, Boucher-Hoese, Braid, and Sheehan-Kerber. The motion carried 4-0 (Briggs
was absent).
4. CONSENT AGENDA
A. Development Update (02/28/2019)
MOTION BY CHROMY, SECONDED BY BRAID TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Boucher-
Hoese, Sheehan-Kerber, and Braid. The motion carried 4-0 (Briggs was absent).
5. REMOVED CONSENT AGENDA ITEMS
None
6. PRESENTATIONS
None
7. PUBLIC HEARING
No Public Hearings
8. OLD BUSINESS A. Construction Customer Attraction Assistance Contract
MCCABE shared the updated contract with Neon Lizard Creative which reflected a revised scope of services since
the EDA discussion in February. He stated that the subcommittee met twice since February 11th and worked to
incorporate additional communication efforts. The initial contract was approved by the EDA in February for $10,000
to initiate branding/marketing efforts. If approved, the contract with Neon Lizard Creative would be amended from
$10,000 to $32,770.00. The total amount of funding, including subcommittee expenditures for BEC, Chamber of
Commerce and other costs would be $46,420.00.
BRAID stated that the subcommittee did a great job revising the contract with a greater emphasis on communication.
MOTION BY BOUCHER-HOESE, SECONDED BY SHEEHAN-KERBER TO APPROVE A RESOLUTION AP-
PROVING THE REVISED SCOPE AND AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE AN AMEND-
2
MENT TO THE PROFESSIONAL SERVICES CONTRACT WITH REBECCA RAUSCH, DBA NEON LIZARD CRE-
ATIVE INCREASING THE CONTRACT AMOUNT FROM $10,000 TO $32,700. Ayes by Chromy, Boucher-Hoese,
Sheehan-Kerber, Braid and Briggs. The motion carried 5-0.
B. Consideration of Downtown Development Proposal
MCCABE introduced the representatives of Mana Brewing and shared that the group is interested in developing a
brewery on edge of downtown Prior Lake at the southeast corner of the West Avenue/Eagle Creek Avenue inter-
section. This item is a continuation of the discussion at the February meeting related to a request for assistance
from the Mana Brewing group for soil corrections totaling $258,500.00. MCCABE stated if the EDA wanted to
consider a business subsidy greater than $250,000, a public hearing would be required.
MCCABE explained that the Mana Brewing group has presented a purchase agreement to the property owner and
that the price has been agreed upon; however, they are still working on a few minor language amendments.
Representatives from Mana Brewing clarified information regarding the geotechnical report and soil samples that
have been taken to date.
BRIGGS questioned the engineering costs and their commitment to this location.
Representatives of Mana Brewing shared that the proposed site is a prime location with space for ample parking
and outdoor seating.
SHEEHAN-KERBER questioned if conversations have occurred with the residential neighbors.
Representatives of Mana Brewing stated that they have not had conversations with any residential neighbors to
date.
BRAID questioned the timeline for the project.
Representatives of Mana Brewing stated that they are planning to have the project completed by the end of 2019.
MCCABE shared details of the proposed Business Subsidy Agreement (BSA) and the disbursement of funds.
CHROMY questioned the proposed building architecture.
Representatives of Mana Brewing stated that the building would primarily be brick and complimentary to the adjacent
commercial building.
SHEEHAN-KERBER questioned plans for the patio and food offerings at the proposed brewery.
Representatives of Mana Brewing shared that they plan to offer beer and pizza.
MCCABE stated that a liquor license would need to be obtained when/if the project progresses.
BRIGGS questioned the benefit to the citizens of Prior Lake if taxpayer dollars are utilized for assistance.
Discussion followed regarding public benefits related to easements, trail connections, and tax capacity.
MOTION BY SHEEHAN-KERBER, SECONDED BY BOUCHER-HOESE TO APPROVE A RESOLUTION AP-
PROVING A BUSINESS SUBSIDY AGREEMENT WITH MANA BREWING LLC IN AN AMOUNT NOT TO EXCEED
$149,900 WITH THE INCLUSION OF LANGUAGE FOR EASEMENT RIGHTS FOR ROAD IMPROVEMENTS,
SIGN PLACEMENT AND PARK ACCESS ALONG WEST AVENUE AND COUNTY ROAD 21. Ayes by Chromy,
Boucher-Hoese, Sheehan-Kerber, Braid and Briggs. The motion carried 5-0.
3
9. NEW BUSINESS A. Joint EDA/CEC Discussion Topics
MCCABE provided an overview of the joint meetings between the EDA and city advisory committees and suggested
topics of interest to discuss.
OLSON explained that at the last CEC meeting there were many questions about upcoming developments and
mentioned that MCCABE will be joining a future CEC meeting to discuss those items.
WATTERS shared that this group has been meeting once per month since November 2018. She stated that the
group works to promote city events and initiatives including participating in parks activities to encourage individuals
sign up for the wavelength and work to amplify existing city communication efforts.
THOMPSON stated that the Mayor’s virtual town hall events were an idea that originated from the CEC.
OLSON stated that the CEC is the city’s eyes and ears on the street and can bring forward issues or concerns that
may not otherwise be known.
WEBER explained that communication is always desired; however, how it is communicated may be different de-
pending on the project.
CHROMY questioned what type of feedback does the CEC hear regarding economic development.
WATTERS stated that there is feedback regarding what type of restaurants constituents are requesting and feed-
back rarely focuses on job creation or tax base impacts of economic development.
BRIGGS stated that the communication and feedback from members of the CEC is often received more positively
than communication from Staff.
WATTERS suggested utilizing the CEC members as volunteers when assistance is needed.
MCCABE shared that the EDA has entered into a contract with Rebecca Rausch of Neon Lizard Creative for mar-
keting and activities related to the 2019 transportation improvement projects in addition to the efforts of Nicole
Schmidt, Project Communications Specialist with Bolton & Menk. He explained that Rebecca’s job will be to com-
municate information and coordinate events in an effort to bring customers to the Downtown and South Lake Village
areas. He stated that anything the advisory committees can do to assist with bringing customers to the business
areas will be helpful.
SHEEHAN-KERBER questioned if there will be representation from the City at AprilFest.
MCCABE stated yes and indicated that that event may be a good opportunity for the CEC to assist with answering
questions at that event.
BRIGGS shared that questions will continue to arise regarding why roundabouts were selected. He suggested
having a good understanding of roundabouts of where they make sense and where they may not will be a question
that continues to arise as we continue through this process.
WEBER questioned if there was an animation of current conditions and proposed conditions. If so, it would be very
beneficial to have short videos to share.
MCCABE stated that Bolton and Menk have simulations that they may be able to share.
BRAID recommended also sharing the message to shop local during the construction efforts.
4
BOUCHER-HOESE stated that there are many great events coming and the city will need assistance with spreading
the information regarding those events.
MCCABE explained that as part of the contract with Neon Lizard Creative, it will be their responsibility to share
communications with Dave Elbon, Communications Coordinator for the City of Prior Lake. He also shared that
information will be posted on the moving forward 13-21 website hosted by Bolton & Menk which will be a great
resource.
WATTERS mentioned that the banner on the City website does not show up on mobile devices therefore a link on
the homepage, or another page, would be necessary to allow mobile devices to find the information.
BRIGGS encouraged CEC members to reach out to Staff in the event you hear or see concerns.
SHEEHAN-KERBER stated that the eyes and ears of the CEC are critical, and some people may be more comfort-
able speaking directly with CEC members than Staff.
BRIGGS explained that Thompson and Diers recently attended a tour of the joint water treatment facility and rec-
ommended CEC take advantage of opportunities to learn more about the City.
OLSON questioned if the City was planning to do videos similar to what was done for the 42/13 project.
MCCABE stated that videos are planned for the intersection improvement projects.
BRIGGS explained that some of the final touches of the intersection improvement projects, for example planters,
may not be completed in 2019, therefore communication will be important as the project progresses.
CHROMY stated that communication will be key for these projects.
10. OTHER BUSINESS A. Staff Updates
i. MVSS Update
SCHWABE provided an update on recent conversations with MVSS representatives.
B. Commissioner Comments
i. CHROMY provided an update on downtown redevelopment opportunities. He stated that a private party has
expressed interest in parcels downtown and that conversations have occurred with property owners regarding
possible redevelopment.
11. ADJOURNMENT
MOTION BY BRAID, SECONDED BY BRIGGS TO ADJOURN THE MEETING. With all in favor, the meeting adjourned
at 6:00 p.m. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Braid and Briggs. The motion carried 5-0.
___________________________
Michael Plante, Executive Director
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: May 13, 2019
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 April 30, 2019.
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: May 8, 2019
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 April 30, 2019.
Number of
Permits
Declared
Value
Number of
Permits
Declared
Value
Number of Permits
% Increase / (% Decrease)
Declared Value
% Increase / (% Decrease)
Single Family Dwellings 40 $12,629,443.00 30 $12,111,000.00 33.33 4.28
Townhouses (# units)15 $2,604,815.00 12 $2,048,000.00 25.00 27.19
Multiple Units 0 $0.00 0 $0.00 n/a n/a
New Commercial Industrial & Commercial 2 $1,620,000.00 0 $0.00 200.00 ###
Residential 155 $1,863,892.00 169 $2,173,300.00 (8.28)(14.24)
Industrial & Commercial 12 $12,083,050.00 8 $1,124,900.00 50.00 974.14
Mechanical 195 $0.00 183 $0.00 6.56 n/a
Mechanical (SF & TH)220 $0.00 120 $0.00 83.33 n/a
TOTALS 639 $30,801,200.00 522 $17,457,200.00 22.41 76.44
t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees.
Increase / (Decrease)2019 Year to Date 2018 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: May 13, 2019
AGENDA #: 4B
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: EDA REVENUE & EXPENDITURE REPORT
DISCUSSION: Introduction
The purpose of this consent agenda item is to review the EDA Revenue & Expendi-
ture Report through April 30, 2019.
History
EDA Commissioners requested financial reports are provided on a quarterly basis.
Current Circumstances
Revenues are minimal until the tax levy is received by the City twice per year.
Expenditures to date primarily relate to staff wages and benefits as anticipated and
budgeted. Expenditures in the amount of $6,071 have been provided from the Pro-
fessional Services account as part of the EDA’s construction communication efforts
with Neon Lizard Creative. Additional unbudgeted expenditures were provided for
a City Hall property tax payment due to the presence of Technology Village. Scott
County reclassified a portion of City Hall to account for the Technology Village space
and sent a 2019 property tax payable statement in the amount of $998. This was
not budgeted for and the amount represents 23% of the 2019 Technology Village
budget.
Conclusion
EDA members receive quarterly financial reports of revenues and expenditures.
ISSUES: This document provides a summary of activities associated with costs as budgeted
by the EDA.
FINANCIAL
IMPACT:
Through the first four months of 2019, the EDA has expended 26.94% of its annual
budget.
ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA Revenue
& Expenditure Report through April 30, 2019.
2. Remove this item from the consent agenda for additional discussion.
RECOMMENDED
MOTION:
Alternative #1
ATTACHMENTS: 1. EDA Revenue & Expenditure Report
*NOTE: Available Balance / Pct Budget Used does not reflect amounts encumbered.
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 1/2Page
:
05/08/2019 08:13 AM
User: cmccabe
DB: Prior Lake PERIOD ENDING 04/30/2019
% BDGT
USED
AVAILABLE
BALANCE
ACTIVITY FOR
MONTH
04/30/2019
YTD BALANCE
04/30/2019
2019
AMENDED BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Revenues
Dept 46500.00 - ECONOMIC DEVELOPMENT
0.00 0.00 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14
0.00 0.00 0.00 0.00 0.00 Prof Service Fee Deposit - EDA240-46500.00-36220.14
0.00 0.00 0.00 0.00 0.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT
Dept 46503.00 - TECH VILLAGE INCUBATOR
42.89 4,465.82 842.92 3,354.18 7,820.00 Facility Rental - EDA240-46503.00-34760.02
42.89 4,465.82 842.92 3,354.18 7,820.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR
42.89 4,465.82 842.92 3,354.18 7,820.00 TOTAL REVENUES
Expenditures
Dept 46500.00 - ECONOMIC DEVELOPMENT
27.44 68,632.77 0.00 25,954.23 94,587.00 Wages - Full Time240-46500.00-51100.01
23.33 2,300.00 250.00 700.00 3,000.00 Wages - Commissioners240-46500.00-51100.05
100.00 (88.83)0.00 88.83 0.00 Overtime - Full Time240-46500.00-51110.01
0.00 0.00 0.00 0.00 0.00 Sick Leave - Buy Down240-46500.00-51208.01
0.00 0.00 0.00 0.00 0.00 Accrued Comp Time240-46500.00-51301.00
24.96 390.21 0.00 129.79 520.00 Compensated Absences240-46500.00-51400.00
27.20 4,404.54 15.50 1,645.46 6,050.00 Social Security Contributions240-46500.00-51450.00
27.20 1,030.15 3.61 384.85 1,415.00 Medicare Contributions240-46500.00-51451.00
27.30 5,200.73 0.00 1,953.27 7,154.00 PERA Contributions240-46500.00-51460.00
24.82 5,675.44 0.00 1,873.56 7,549.00 Health Insurance240-46500.00-51470.00
25.00 180.00 0.00 60.00 240.00 Retiree HCSP Contributions240-46500.00-51472.00
12.50 472.50 0.00 67.50 540.00 Dental Insurance240-46500.00-51473.00
25.24 50.84 0.00 17.16 68.00 Life Insurance240-46500.00-51474.00
50.20 246.00 124.00 248.00 494.00 Workers Compensation Insurance240-46500.00-51477.00
0.00 0.00 0.00 0.00 0.00 Office Supplies240-46500.00-52010.00
0.00 2,500.00 0.00 0.00 2,500.00 Legal Services240-46500.00-53020.00
30.36 13,928.32 6,071.68 6,071.68 20,000.00 Professional Services - General240-46500.00-53100.80
0.00 100.00 0.00 0.00 100.00 Telecommunications240-46500.00-53210.00
0.00 0.00 0.00 0.00 0.00 Training and Employee Development240-46500.00-53310.10
0.00 0.00 0.00 0.00 0.00 Required Notice Publication240-46500.00-53510.00
0.00 500.00 0.00 0.00 500.00 Memberships and Subscriptions240-46500.00-54310.00
0.00 750.00 0.00 0.00 750.00 Miscellaneous Expense240-46500.00-54320.00
0.00 0.00 0.00 0.00 0.00 Projects - Professional Services240-46500.00-55050.00
26.94 106,272.67 6,464.79 39,194.33 145,467.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT
Dept 46503.00 - TECH VILLAGE INCUBATOR
19.83 80.17 0.00 19.83 100.00 Office Supplies240-46503.00-52010.00
0.00 1,000.00 0.00 0.00 1,000.00 Small Equipment - General240-46503.00-52400.10
399.20 (748.00)998.00 998.00 250.00 Legal Services240-46503.00-53020.00
0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60
12.17 658.72 20.17 91.28 750.00 Telecommunications240-46503.00-53210.00
0.00 0.00 0.00 0.00 0.00 Rent Subsidies240-46503.00-54095.00
0.00 1,000.00 0.00 0.00 1,000.00 Business Assistance240-46503.00-54100.00
0.00 750.00 0.00 0.00 750.00 Memberships and Subscriptions240-46503.00-54310.00
*NOTE: Available Balance / Pct Budget Used does not reflect amounts encumbered.
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page
:
05/08/2019 08:13 AM
User: cmccabe
DB: Prior Lake PERIOD ENDING 04/30/2019
% BDGT
USED
AVAILABLE
BALANCE
ACTIVITY FOR
MONTH
04/30/2019
YTD BALANCE
04/30/2019
2019
AMENDED BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Expenditures
0.00 500.00 0.00 0.00 500.00 Miscellaneous Expense240-46503.00-54320.00
0.00 0.00 0.00 0.00 0.00 Building & Building Improvements240-46503.00-55520.00
0.00 0.00 0.00 0.00 0.00 Furniture and Office Equipment240-46503.00-55560.00
0.00 0.00 0.00 0.00 0.00 Machinery and Equipment240-46503.00-55570.00
25.50 3,240.89 1,018.17 1,109.11 4,350.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR
26.90 109,513.56 7,482.96 40,303.44 149,817.00 TOTAL EXPENDITURES
26.02 (105,047.74)(6,640.04)(36,949.26)(141,997.00)NET OF REVENUES & EXPENDITURES
26.90 109,513.56 7,482.96 40,303.44 149,817.00 TOTAL EXPENDITURES
42.89 4,465.82 842.92 3,354.18 7,820.00 TOTAL REVENUES
Fund 240 - EDA SPECIAL REVENUE FUND:
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: MAY 13, 2019
AGENDA #: 8A
PREPARED BY:
PRESENTED BY:
CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR
CASEY MCCABE
AGENDA ITEM: MINNESOTA CITIZENS FOR THE ARTS SPEAKER
DISCUSSION: Introduction
The purpose of this agenda item is to see if the EDA is interested in inviting a
speaker from the Minnesota Citizens for the Arts to a future meeting.
Current Circumstances
In the spring of 2018, the EDA had invited a speaker from the Minnesota Citizens
for the Arts to attend a meeting and discuss the economic benefits of having arts
in a downtown area and other public spaces. The invitation was accepted; how-
ever, due to reasons outside of her control, the speaker had to cancel prior to
the meeting.
Conclusion
If the EDA feels a discussion of the arts would be beneficial, they can direct staff
to secure a speaker to attend a future EDA meeting.
FINANCIAL
IMPACT:
No financial impact is anticipated as a result of the recommended motion.
ALTERNATIVES: 1. Motion and a second directing staff to secure a speaker to discuss the eco-
nomic benefits of the arts to Prior Lake.
2. Motion and a second to table action or provide further direction to staff.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: MAY 13, 2019
AGENDA #: 9A
PREPARED BY:
PRESENTED BY:
CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR
CASEY MCCABE
AGENDA ITEM: EDA FUNDING OPTIONS
DISCUSSION: Introduction
The purpose of this agenda item is to discuss funding options and identify additional
opportunities to support the activities of the EDA.
History
In the spring of 2018, the City Council approved two resolutions in support of the
EDA. The first was a resolution amending the EDA Enabling Resolution and the
second was a resolution which; 1) approved the EDA 2018 Business Plan; 2) au-
thorized a transfer of funds from the Prior Lake General Fund to the EDA Special
Revenue Fund; and 3) authorized the EDA to utilize the EDA Special Revenue Fund
for approved economic development initiatives.
Current Circumstances
The EDA and City Council held a joint work session on April 1, 2019 where the EDA
detailed the types of projects that have been supported with funding provided by the
Council, the EDA’s efforts to acquire properties, the EDA’s work to encourage cus-
tomer traffic in the South Lake Village and downtown areas during construction, and
discussion of additional funding opportunities or allocations to support further busi-
ness attraction and retention efforts of the EDA.
Some of the funding mechanisms identified by the Council and EDA included an
increase to the EDA levy, an additional allocation of general fund reserves to the
EDA or identifying an amount of future reserves that may be allocated for specific
city initiatives, including support of the EDA.
Conclusion
The City Council will be discussing long-range financial planning during a May 20th
work session. The EDA should identify potential sources of funding that are pre-
ferred by the commission, which can then be relayed to the full council while they
are discussing long-range financial planning at the work session.
FINANCIAL
IMPACT:
The EDA Reserve provides cash flow funding so the EDA can operate between
property tax payments, which it is almost exclusively dependent upon. Specifically,
50% of the anticipated next year EDA expenditures should always remain in this
fund.
ALTERNATIVES: 1. Motion and a second to provide direction to staff and City Council representa-
tives as to the future funding mechanisms preferred by the EDA.
2. Motion and a second to table action and provide further direction to staff.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: May 13, 2019
AGENDA #: 9B
PREPARED BY:
PRESENTED BY:
Casey McCabe, Community Development Director
Casey McCabe
AGENDA ITEM: DOWNTOWN STOREFRONT IMPROVEMENT PROGRAM
DISCUSSION: Introduction
The purpose of this agenda item is to discuss whether the EDA wishes to estab-
lish a Downtown Commercial Storefront Improvement Program.
History
The EDA Enabling Resolution was amended by the City Council in 2018 to in-
clude language which allows the EDA to utilize EDA Special Revenue Funds to
facilitate economic development initiatives identified in the EDA Business Plan.
The adopted EDA Business Plan identifies how additional funding could be used
to achieve a greater economic development impact in the community through
economic development initiatives proposed by the EDA.
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
In the early to mid-2000’s, the City of Prior Lake assisted with approximately 12
storefront improvement loans in the downtown area. City staff has received a
few requests for storefront assistance over the last few years, but no program
currently exists for this type of assistance.
The EDA considered a request for storefront façade assistance for a downtown
property last fall but declined to provide the assistance. EDA member comments
included concern that the proposed improvements were primarily related to gen-
eral maintenance items and the EDA felt a potential storefront improvement pro-
gram should be designed to bring building closer to conformance with the down-
town design guidelines, not primarily for general building maintenance. Com-
ments also indicated hesitation for a storefront assistance loan/grant for a non-
conforming downtown property.
2
Following recent coverage of another community’s storefront rehabilitation pro-
gram in the Star Tribune, a council member asked staff if the EDA has explored
a similar program. As indicated above, the EDA has discussed storefront reha-
bilitation loans recently, but the discussion was focused on one specific property.
Staff wanted to provide an opportunity for the EDA to discuss a potential down-
town storefront program more generally.
Conclusion
If the EDA is interested in discussing this further, staff would prepare draft Com-
mercial Storefront Improvement Program guidelines for EDA consideration.
ISSUES: If this program is pursued, additional criteria related to non-conforming uses,
available funding amounts and eligible project costs would be determined by the
EDA.
FINANCIAL
IMPACT:
The EDA Special Revenue Fund would be the likely source for potential store-
front façade improvement program funding.
ALTERNATIVES: 1. Motion and second providing direction to staff related to the creation of a
Downtown Storefront Improvement Program.
2. Continue discussion at a future meeting.
RECOMMENDED
MOTION:
Alternative #1