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HomeMy WebLinkAbout03 11 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, March 11, 2019 – 4:00 p.m. Representatives of the Citizens Engagement Committee will be in attendance for this joint meeting of the EDA and CEC 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/March 11, 2019 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. February 11, 2019 4. CONSENT AGENDA A. Development Update (2/28/2019) 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS A. None 7. PUBLIC HEARINGS A. None 8. OLD BUSINESS A. Construction Customer Attraction Assistance Contract B. Consideration of Downtown Development Proposal 9. NEW BUSINESS A. Joint EDA/CEC Discussion Topics 10. OTHER BUSINESS A. Staff Updates a. MVSS Update B. Commissioner Comments 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 February 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, Frank Boyles, Community Development Director McCabe and Planner Schwabe. Guests present were BEC members Tommy Hesch, Kim Prchal, Wade Larson, Stephanie Carroll, Tim Marco, Nicole Schmidt of Bolton and Menk, and representatives of Mana Brewery. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE, TO APPROVE THE AGENDA. Ayes by Chromy, Briggs, Boucher-Hoese, Sheehan-Kerber and Braid. The motion carried 5-0. 3. APPROVAL OF MEETING MINUTES A. January 14, 2019 MOTION BY BRAID, SECONDED BY CHROMY TO APPROVE THE JANUARY 14, 2019 MEETING MINUTES. Ayes by Chromy, Boucher-Hoese, Braid, Sheehan-Kerber and Briggs. The motion carried 5-0. 4. CONSENT AGENDA MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Braid and Briggs. The motion carried 5-0. A. Development Update (01/31/2019) MCCABE provided a summary of residential and commercial activity for the month of January. 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 provided an overview of the recent BEC and EDA actions related to the construction customer attraction efforts, including the formation of a subcommittee and development of activity/event ideas. He stated that the purpose of the subcommittee would be to assist with the management of the construction customer attraction events and expenditures. MCCABE summarized the proposal from Neon Lizard Creative totaling $47,500. He shared that this proposal includes the development of marketing materials and activities in the Downtown and South Lake Village area. He explained that the BEC is also requesting approximately $2,500 to host construction information events in 2019. These events would be in lieu of bi-annual business mixer. Nicole Schmidt, Project Communication Coordinator for Bolton and Menk will be assisting with the construction information event. 2 PRCHAL explained that the Chamber of Commerce is considering producing a passport style booklet to encourage traffic to the Downtown and South Lake Village area. She shared that additional discussion is needed regarding who would be purchasing the passport and how it would be promoted. BRIGGS questioned if the EDA could request a portion of the allocated city space in the Prior Lake American. CARROLL offered to post information on the area mother’s group Facebook site as it is a resource for many residents. CHROMY questioned Schmidt on what type of communication she anticipates offering to community/business members. SCHMIDT stated that she is scheduled for two community meetings (tentatively scheduled for April 4, 2019 – Staging, What to expect, Timeline) and at the end of construction (October 2019 – Round about Rodeo). She shared that Bolton and Menk will be operating a phone hotline and email hotline as well as email updates throughout the construction to subscribers. SHEEHAN-KERBER stated having communication in one consistent location would be best for all involved. BRAID stated that encouraging people to go to the designated paper features, website, social media sites, etc. for up-to-date information is important. He shared that in regard to the Neon Lizard Creative proposal, communication should be more prominent with the proposed events as a supporting effort. CARROLL questioned if there was a slogan/campaign identified for use during the construction activities. MCCABE shared that the BEC was considering utilizing “Worth the Wait” as the primary motto. PRCHAL stated that she does not often hire marketing firms and is looking for feedback on the costs identified in the proposal. BRAID stated that the proposal is consistent with other marketing proposals he’s viewed and its more of a question of prioritization of what we feel is most important. CARROLL questioned if events in the proposal could be changed as construction progresses. MCCABE stated that one of the purposes of the proposed subcommittee would be to monitor the events and expenditures. BRAID requested the proposed events list be further pared down and return to the EDA for further discussion. MCCABE shared opportunities for reducing the event costs and stated that the EDA could also approve a lesser not to exceed dollar amount if inclined. MARCO questioned if there is a mobile app available that residents, business owners, and visitors could utilize. SCHMIDT stated that she is not aware of an app of that nature but that she could check with her team. MOTION BY BRAID, SECONDED BY BOUCHER-HOESE TO APPOINT A SUBCOMMITTEE TO OVERSEE THE CONTRACT AND EXPENDITURES RELATED TO DOWNTOWN CUSTOMER ATTRACTION EFFORTS. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Braid and Briggs. The motion carried 5-0. BRIGGS stated that the BEC could request additional funding if needed. 3 BRAID requested that the subcommittee review the proposed events/activities and return to the EDA with a list that is more focused on communication. MCCABE stated that entering into a contract of a lesser amount would allow marketing efforts to begin with the subcommittee reviewing the proposal and returning to the EDA in March to amend the contract to allow for additional expenditures. MOTION BY BRAID, SECONDED BY SHEEHAN-KERBER APPROVING A RESOLUTION APPROVING A CONTRACT WITH NEON LIZARD CREATIVE IN THE AMOUNT NOT TO EXCEED $10,000. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Braid. The motion carried 4-0 (Briggs absent). Discussion followed regarding consideration of reducing or eliminating permit fees for events. BRIGGS stated that the city has committed to supporting efforts in the Downtown and South Lake Village area. PRCHAL suggested stating that the EDA would be open to considering fee reductions so long as certain criteria and a threshold is met. B. Advisory Committee Appointments MCCABE shared that at the last meeting, the EDA discussed appointing two liaisons to the BEC. Staff reviewed bylaws and determined that City Council action was necessary to allow the EDA to amend their bylaws. He explained that on January 22, 2019 the City Council approved a motion authorizing the EDA to amend bylaws to allow for the appointment of two BEC liaisons. BRAID shared that Technology Village is becoming a more county-wide initiative and that the Fast Track Business Challenge received the EDAM Business of the Year award. He stated that he is willing to serve again if no one is interested. SHEEHAN-KERBER stated that her expertise would be best served on the BEC. BRAID stated that the Technology Village Board will be meeting on Friday mornings. MOTION BY CHROMY AND SECOND BY BRIGGS APPROVING THE PROPOSED AMENDMENT TO ARTICLE 5.5 OF THE EDA BYLAWS TO ALLOW FOR THE APPOINTMENT OF TWO BEC LIAISONS. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Braid and Briggs. The motion carried 5-0. MOTION BY BRAID AND SECOND BY BRIGGS APPOINTING CHROMY TO SERVE ON THE TECHNOLOGY VILLAGE BOARD OF DIRECTORS FOR 2019 AND APPOINTING SHEEHAN-KERBER AND BOUCHER-HOESE TO SERVE AS EDA LIAISONS TO THE BUSINESS ENGAGEMENT COMMITTEE FOR 2019. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Braid and Briggs. The motion carried 5-0. 9. NEW BUSINESS A. Joint EDA/BEC Discussion Topics i. Community / Business Construction Informational Mixer Events MCCABE shared that the CEC will be at the EDA meeting in March and will be looking for construction updates. He continued by restating that the BEC was interested in hosting a construction information event in partnership with Bolton and Menk at a business in the South Lake Village area to provide information regarding construction phasing, outreach, communication plans, etc. SCHMIDT offered to prepare an agenda that could be distributed and stated that the specific communication efforts (e.g. card, magnets, etc.) are still being finalized. CHROMY questioned how the communications would coincide with other construction projects in the area. 4 SCHMIDT stated that Bolton and Menk would be coordinating with the other projects also. PRCHAL reminded the group that April 4, 2019 is Spring Break for the Prior Lake/Savage School District and would recommend considering another date if possible. MCCABE stated that the largest concern he’s received from business owners is them wanting to know when their specific business will be impacted by the construction projects. BRAID questioned how signage is addressed by Bolton and Menk. SCHMIDT stated that directional signage for business access is written in the specs. While not specific to each individual business the signs will indicate how to get to downtown, through street closures, etc. She shared that Bolton & Menk is currently working on a staging video that will be hopefully be completed at the end of February. PRCHAL recommended information be provided to BEC members via dropbox so liaisons can have access to information for distribution to their liaison areas. CHROMY questioned if the BEC felt three meetings would be sufficient. PRCHAL stated that having too many meetings can reduce the effectiveness; however, three meetings total (Spring, Summer, Fall) would be good. SCHMIDT suggested considering conducting a meeting around when staging areas change. CARROLL recommended having the Bolton & Menk marketing and Neon Lizard marketing prepared for distribution on or before the first communication meeting. The EDA directed Schmidt to consider hosting the first communication meeting at a business in the Downtown or South Lake Village area. ii. Downtown Redevelopment Opportunities and Commercial Project This item was not discussed. B. Downtown Development Proposal MCCABE introduced the representatives of Mana Brewing and share that the group is interested in developing a brewery on edge of downtown Prior Lake at the southwest corner of the West Avenue/Eagle Creek Avenue intersection. The intent of this item tonight is to consider a proposal from the Mana Brewing group for assistance from the EDA. The representatives explained that there is an anticipated cost of $2.15 million for property acquisition, re-platting and associated city fees, as well as construction costs associated with the exterior and interior build-out for an approximate 7,000 sq. ft. building. They shared that the soil conditions of the westerly portion of the property are less than adequate for footings and would require 5-8 feet of soil corrections and a deeper Class 5 base. The preliminary soil remediation and alternative foundation system costs associated with this project are approximately $200,000. They explained that they have had a geotechnical report completed for the site. SHEEHAN-KERBER questioned if soil corrections information from the neighboring building which was recently constructed was shared. Mana Brewery representatives stated that the soil conditions for the easterly property were more suitable. CHROMY questioned the City’s re-platting/fee requirements. 5 MCCABE shared that the property has a metes and bounds description and the fees associated with re-platting the property would only be required if they were to subdivide. CHROMY asked if park dedication funds could be utilized as part of this proposal if the parking were to be shared by users of the nearby parks and trails. Mana Brewing representatives indicated that they would like to be open by the end of 2019, if possible. BRIGGS shared that he likes the idea and would be interested in getting more information regarding the geotechnical and alternative foundation reports which detail the necessary soil corrections. CHROMY stated that the EDA is always excited to have new businesses in town. BRIGGS stated that any dollars allocated to a project come from taxpayers, therefore, the EDA needs as much information as possible when considering a request for assistance. Mana Brewing representatives indicated that the primary hindrances with the property are the soil conditions and land costs. MCCABE explained that if the EDA and/or City Council wanted to proceed, the city could purchase a portion of the property for use as a parking lot/trailhead. If the EDA wasn’t interested in owning that, perhaps another source (e.g. tax abatement) could be considered or a cost share agreement. The purpose of this item tonight is to get feedback from the EDA regarding their comfort level with financial assistance. BOYLES stated that a specific amount would need to be requested for further consideration by the EDA. The EDA directed Staff to continue to work with Mana Brewing to explore contribution options and return to the EDA at a future meeting. 10. OTHER BUSINESS A. Staff Updates i. None B. Commissioner Comments i.BRAID shared that he and Boucher-Hoese attended the Minnesota Vintage Snowmobile Show (MVSS) event on January 26, 2019. He stated that they had a conversation with an MVSS representative regarding the history of the event and future plans. He shared that he has a meeting set up with a representative from the SMSC to discuss their appetite for a partnership. SHEEHAN-KERBER stated that the potential for the event is exciting and would like this topic to be explored further. 11. ADJOURNMENT MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 5:55 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:March 11, 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 commercial development update as of February 28, 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: March 7, 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 February 28, 2019. Number of Permits Declared Value Number of Permits Declared Value Number of Permits % Increase / (% Decrease) Declared Value % Increase / (% Decrease) Single Family Dwellings 13 $4,243,284.00 13 $6,636,000.00 0.00 (36.06) Townhouses (# units) 0 $0.00 4 $626,000.00 (100.00) ### Multiple Units 0 $0.00 0 $0.00 n/a n/a New Commercial Industrial & Commercial 1 $1,000,000.00 0 $0.00 100.00 ### Residential 45 $619,272.00 54 $852,100.00 (16.67) (27.32) Industrial & Commercial 5 $5,044,000.00 5 $879,000.00 0.00 473.83 Mechanical 97 84 $0.00 15.48 n/a Mechanical (SF & TH) 52 68 $0.00 (23.53)n/a TOTALS 213 $10,906,556.00 228 $8,993,100.00 (6.58)21.28 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 Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE:March 11, 2019 AGENDA #:8A PREPARED BY:Casey McCabe, Community Development Director AGENDA ITEM:Construction Customer Attraction Assistance Contract DISCUSSION: Introduction The purpose of this agenda report is to consider approval of the attached resolution authorizing the Executive Director to execute an amendment to the City’s Standardized Professional Services Contract with Rebecca Rausch, DBA Neon Lizard Creative. History Road improvement projects will occur on Duluth Avenue, TH13 and CH21 in 2019. These roads are essential to our transportation future and community development but most certainly will cause short term access issues for area businesses. To help area businesses, the EDA has previously discussed opportunities to assist with customer attraction efforts in the downtown and South Lake Village area during 2019 construction activities. During their January 2019 meeting, the EDA approved a motion to authorize an initial allocation of up to $50,000 from the EDA reserve fund to identify a coordinator/project manager and develop a plan, including marketing, for construction customer attraction assistance in 2019. During their February meeting, the EDA approved a resolution approving a contract with Neon Lizard Creative in an amount not to exceed $10,000 and appointed a subcommittee to oversee the contract and expenditures. Current Circumstances The initial contract approval was provided by the EDA in February in an amount not to exceed $10,000 which allowed Neon Lizard to begin working on customer attraction efforts. The EDA also directed the subcommittee to review and revise the scope of services to include a greater focus on communication for EDA review. The EDA appointed subcommittee has met twice since the last EDA meeting, including once with Neon Lizard Creative to discuss scope of services and cost. The subcommittee has recommended revisions to the scope of services, which have been incorporated in Attachment 3. The proposed amendment would increase the amount of the Neon Lizard Creative contract from $10,000 to $32,770 and would increase overall expenditures (including City and Chamber of Commerce related costs) to a total of $46,420. Conclusion The requested action would allow the EDA to amend the contract with Neon Lizard Creative to accomplish the tasks outlined in the contract and formalize the amount of EDA funds that will be allocated to this work. ISSUES:Each event requires planning, volunteers, management, collaboration and oversight to achieve the objective of attracting shoppers to the downtown and South Lake Village regardless of the improvement work. The city has insufficient staff either in Community Development or Recreation Departments to coordinate and promote these events. The EDA should review the proposed scope of services and discuss if it wishes to increase the initial allocation of funds from $10,000 to $46,420; $32,770 of which would be incorporated in the revised Neon Lizard Creative contract and $13,650 would be managed by the subcommittee for efforts related to City or Chamber of Commerce initiatives not included in the Neon Lizard contract. FINANCIAL IMPACT: Funding for this project will come from the Economic Development Authority Special Revenue Fund [Fund 240]. The preliminary fund balance as of February 28, 2019 (preliminary / not audited) in the EDA Special Revenue Fund is approximately $527,000. Although the EDA has allocated some of this funding to future projects and must maintain a minimum fund balance for operation, there is funding available for communication and promotion of customer attraction efforts in 2019. ALTERNATIVES:1. Motion and second to approve a resolution approving the revised scope of services in the total amount of $46,387.36 and authorizing the Executive Director to execute an amendment to the Professional Services Contract with Rebecca Rausch, DBA Neon Lizard Creative increasing the contract amount from $10,000 to $32,770. 2. Motion and second to deny the resolution and provide direction to staff. 3. Motion and second to continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENT: Alternative #1 1. Professional Services Contract Amendment 2. Executed Standard Contract 3. Revised Scope of Services Page 1 of 2 FIRST AMENDMENT TO STANDARD CONTRACT FOR PROFESSIONAL SERVICES BY AND BETWEEN CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY “City” AND REBECCA RAUSCH, DBA NEON LIZARD CREATIVE “Contractor” WHEREAS, THE PARTIES ABOVE MENTIONED entered into a Standard Contract for Professional Services (“Contract”) effective as of February 12, 2019, executed by Contractor on February 19, 2019 and executed by City on February 20, 2019; and WHEREAS, said Contract identified a Contract Price as a fixed sum of up to $10,000 as full and complete payment for the Work; and WHEREAS, said Contract included a Scope of Work attached as Exhibit A; and WHEREAS, City and Contractor desire to amend the Contract Price; and WHEREAS, City and Contractor desire to amend the Scope of Work. NOW THEREFORE BY THIS AMENDMENT, City and Contractor hereby agree to amend the Contract according to the following terms: 3.Compensation for Services. City agrees to pay the Contractor a fixed sum of up to $10,000 $32,770 as full and complete payment for the Work (“Contract Price”). A. Any changes in the scope of the Work which may result in an increase to the compensation due the Contractor shall require prior written approval by the Executive Director or by the Economic Development Authority (EDA). The City will not pay additional compensation for services or materials that do not have prior written authorization. B. If Contractor is delayed in performance due to any cause beyond its reasonable control, including but not limited to strikes, riots, fires, acts of God, governmental actions, actions of a third party, or actions or inactions of City, the time for performance shall be extended by the period of time lost by reason of the delay. Contractor will be entitled to payment for its reasonable additional charges, if any, due to the delay. Exhibit A “Work” is hereby deleted in its entirety and replaced with the attached Exhibit, including Design Fee/Org (Neon Lizard) of $17,680 and Material Cost (Neon Lizard) of $15,090. CONTINUING VALIDITY OF CONTRACT, except as herein revised, all other terms and conditions of the Contract shall be enforceable. IN WITNESS WHEREOF, City and Contractor have hereunder affixed their respective seals, this ___ day of ____________, 2019. City: City of Prior Lake Economic Contractor: Rebecca Rausch DBA Development Authority Neon Lizard Creative By: By: Michael Plante Rebecca Rausch Its: Executive Director Its: Owner/Designer Page 2 of 2 Exhibit PromotionResponsible PartyPRINT DIGITAL PROMO EVENT VENDORS OTHER CONSIDERATIONSDESIGN / PRODUCTION (HOURS) Design Fee/ Org (Neon Lizard) MATERIAL COST (Neon Liaard)VENDOR FEE (City Staff) TOTALS Proposal Development NLC0 -$ -$ Theme / Logo / Brand NLC13 1,040.00$ 1,040.00$ Freestanding Displays City 4 320.00$ 200.00$ 900.00$ 1,420.00$ Construction Information Meetings (BEC / Bolten & Menk)CityBolten & Menk will produce promotional materials. 2,500.00$ 2,500.00$ Newspaper Advertising **ask about discount for print and online advertising**NLC 8 ads (Bi-weekly, 4 months)2 columns x 4" = $173.68 / ad (color ad (20%) = $208.42)PL American12 960.00$ 1,700.00$ 2,660.00$ Online Newspaper Advertising NLC 4 Total Audience Coverage AdsEach placement is for 7 Days - 100% SOVPL American6 480.00$ 1,400.00$ 1,880.00$ Utility Bill/ Calendar Event Flyer NLC 3x Print Sessions. 10k ea ($560) Plus Google Calendar UpdatesBi-monthly utility flyer with calendar- printing extra for displays12 960.00$ 1,680.00$ 2,640.00$ Bag Stuffers at Lund's / Byerly's NLC 10k QUsed to distribute information about upcoming events560.00$ 560.00$ Slogan Feather Flags NLC 3x Flags2 160.00$ 450.00$ 610.00$ Social Media Services NLC FB / Insta. Setup4 320.00$ 320.00$ Social Media Management/Placement NLC All eventsApprox 6 hrs / month / $500 for all events 15-20 posts per month38 3,040.00$ 3,040.00$ SOCIAL MEDIA CAMPAIGN (SPRING) NLC Design 9 POSTS PER SEASON-each unique12 960.00$ -$ 960.00$ SOCIAL MEDIA CAMPAIGN (SUMMER) NLC Design 9 POSTS PER SEASON-each unique12 960.00$ -$ 960.00$ SOCIAL MEDIA CAMPAIGN (FALL) NLC Design 9 POSTS PER SEASON-each unique12 960.00$ -$ 960.00$ Poster Spring NLC 150 Q 6 480.00$ 450.00$ 930.00$ Poster Summer NLC 150 Q 6 480.00$ 450.00$ 930.00$ Poster Fall NLC 150 Q 6 480.00$ 450.00$ 930.00$ Communication Assistance NLC10 Hours for DT Business Events; 10 Hours for SLV Business Events20 1,600.00$ 1,600.00$ Subcommittee Discretionary 3,500.00$ 3,500.00$ Gorilla Marketing 5 400.00$ 500.00$ 900.00$ Subtotal: 28,340.00$ Couple's Night Out (Downtown) NLC SM Ads (2 ads repeat)Couples Night (Flat fee entry $25) Restaurants (?)/ Magician ($300)/ Sketch Artist ($300)/ Musicians ($300)Restaurants donate tables/cloths/tableware Food purchased per reservation/person Serve buffet style. My team decorates14 1,120.00$ 1,200.00$ 2,320.00$ Coupon Flyer for PLAY Tournaments NLC 500 Q x 4 tournamentsPLAY to hand out8 640.00$ 750.00$ 1,390.00$ Instagram Pop Ups NLC SM Campaign (4 posts) Instagram Pop-ups X 6Assembly crew is included in costs-this is a Instagram worthy backdrops that will "pop up" in various locations around the city for only 48 hours. Each one will be secured and safe by licensed construction person and promoted on Instagram and Facebook. We will do a "model search" of local girls to get the hype up and use them for the promo art. Although this does not appeal to the older crowd, it will appeal to teens with cash, parents and the young 20s set who seek this out all the time. Big bang for little investment.7 560.00$ 1,000.00$ 1,560.00$ Project partnering with ISD 719 / Oversized Games Day CampaignNLC SM Campaign (5 Posts)X Games + X Bounce HousesTracey PetschlUse School District and City Games (Park, Rec, Security Staff) 12 960.00$ 500.00$ 1,460.00$ Chalk Fest NLC SM Campaign (10 Posts)Gift Cards for winners of categories. 5 400.00$ 3,500.00$ 500.00$ 4,400.00$ Gift Cards for Drawings City / NLC SM Campaign (10 Posts)Purchased from Downtown & SLV Businesses 5 400.00$ 300.00$ 4,000.00$ 4,700.00$ Restaurant Tour City / ChamberDowntown & SLV restaurants/breweryBus Rental ($45 / hr / bus) 5 Events w / 2 Buses for 5 hours 2,250.00$ 2,250.00$ Subtotal: 18,080.00$ 221 17,680.00$ 15,090.00$ 13,650.00$ 46,420.00$CommunicationEvents / Activities Sub-Totals Promotion Responsible Party PRINT DIGITAL PROMO EVENT VENDORS OTHER CONSIDERATIONS DESIGN / PRODUCTION (HOURS) Design Fee/ Org (Neon Lizard) MATERIAL COST (Neon Liaard) VENDOR FEE (City Staff) TOTALS Proposal Development NLC 0 -$ -$ Theme / Logo / Brand NLC 13 1,040.00$ 1,040.00$ Freestanding Displays City 4 320.00$ 200.00$ 900.00$ 1,420.00$ Construction Information Meetings (BEC / Bolten & Menk)City Bolten & Menk will produce promotional materials. 2,500.00$ 2,500.00$ Newspaper Advertising **ask about discount for print and online advertising**NLC 8 ads (Bi-weekly, 4 months)2 columns x 4" = $173.68 / ad (color ad (20%) = $208.42)PL American 12 960.00$ 1,700.00$ 2,660.00$ Online Newspaper Advertising NLC 4 Total Audience Coverage Ads Each placement is for 7 Days - 100% SOV PL American 6 480.00$ 1,400.00$ 1,880.00$ Utility Bill/ Calendar Event Flyer NLC 3x Print Sessions. 10k ea ($560)Plus Google Calendar Updates Bi-monthly utility flyer with calendar- printing extra for displays 12 960.00$ 1,680.00$ 2,640.00$ Bag Stuffers at Lund's / Byerly's NLC 10k Q Used to distribute information about upcoming events 560.00$ 560.00$ Slogan Feather Flags NLC 3x Flags 2 160.00$ 450.00$ 610.00$ Social Media Services NLC FB / Insta. Setup 4 320.00$ 320.00$ Social Media Management/Placement NLC All events Approx 6 hrs / month / $500 for all events 15-20 posts per month 38 3,040.00$ 3,040.00$ SOCIAL MEDIA CAMPAIGN (SPRING)NLC Design 9 POSTS PER SEASON-each unique 12 960.00$ -$ 960.00$ SOCIAL MEDIA CAMPAIGN (SUMMER)NLC Design 9 POSTS PER SEASON-each unique 12 960.00$ -$ 960.00$ SOCIAL MEDIA CAMPAIGN (FALL)NLC Design 9 POSTS PER SEASON-each unique 12 960.00$ -$ 960.00$ Poster Spring NLC 150 Q 6 480.00$ 450.00$ 930.00$ Poster Summer NLC 150 Q 6 480.00$ 450.00$ 930.00$ Poster Fall NLC 150 Q 6 480.00$ 450.00$ 930.00$ Communication Assistance NLC 10 Hours for DT Business Events; 10 Hours for SLV Business Events 20 1,600.00$ 1,600.00$ Subcommittee Discretionary 3,500.00$ 3,500.00$ Gorilla Marketing 5 400.00$ 500.00$ 900.00$ Subtotal:28,340.00$ Couple's Night Out (Downtown)NLC SM Ads (2 ads repeat)Couples Night (Flat fee entry $25) Restaurants (?)/ Magician ($300)/ Sketch Artist ($300)/ Musicians ($300) Restaurants donate tables/cloths/tableware Food purchased per reservation/person Serve buffet style. My team decorates 14 1,120.00$ 1,200.00$ 2,320.00$ Coupon Flyer for PLAY Tournaments NLC 500 Q x 4 tournaments PLAY to hand out 8 640.00$ 750.00$ 1,390.00$ Instagram Pop Ups NLC SM Campaign (4 posts)Instagram Pop-ups X 6 Assembly crew is included in costs-this is a Instagram worthy backdrops that will "pop up" in various locations around the city for only 48 hours. Each one will be secured and safe by licensed construction person and promoted on Instagram and Facebook. We will do a "model search" of local girls to get the hype up and use them for the promo art. Although this does not appeal to the older crowd, it will appeal to teens with cash, parents and the young 20s set who seek this out all the time. Big bang for little investment.7 560.00$ 1,000.00$ 1,560.00$ Project partnering with ISD 719 / Oversized Games Day Campaign NLC SM Campaign (5 Posts)X Games + X Bounce Houses Tracey Petschl Use School District and City Games (Park, Rec, Security Staff) 12 960.00$ 500.00$ 1,460.00$ Chalk Fest NLC SM Campaign (10 Posts)Gift Cards for winners of categories. 5 400.00$ 3,500.00$ 500.00$ 4,400.00$ Gift Cards for Drawings City / NLC SM Campaign (10 Posts)Purchased from Downtown & SLV Businesses 5 400.00$ 300.00$ 4,000.00$ 4,700.00$ Restaurant Tour City / Chamber Downtown & SLV restaurants/brewery Bus Rental ($45 / hr / bus) 5 Events w / 2 Buses for 5 hours 2,250.00$ 2,250.00$ Subtotal:18,080.00$ 221 17,680.00$ 15,090.00$ 13,650.00$ 46,420.00$ Communication Events / Activities Sub-Totals Updated: 2/28/19 RESOLUTION 19-03 EDA A RESOLUTION APPROVING AN AMENDMENT TO THE CITY’S STANDARDIZED PROFESSIONAL SERVICES CONTRACT WITH NEON LIZARD CREATIVE Motion By: Second By: WHEREAS, WHEREAS, The City of Prior Lake is fortunate to have an active and entrepreneurial entity, known as the Economic Development Authority (EDA), focused on creating a desirable environment to attract and grow businesses which will expand and diversify the city’s tax base and employment opportunities; and The business of the EDA includes but is not limited to promoting growth, development and redevelopment of retail, commercial and industrial properties in Prior Lake; and WHEREAS, WHEREAS, The Prior Lake City Council adopted the Prior Lake Economic Development Authority Business Plan on May 21, 2018; and One of the five key initiatives identified in the EDA Business Plan states, “Commercial Activity During Construction. Prior Lake will see some significant road improvement projects in 2018 and 2019 along key transportation networks. The EDA will work with commercial businesses and stakeholders in these areas, as well as the Chamber of Commerce, Business Engagement Committee and other groups to maintain and encourage the economic vitality of our businesses before, during and after these construction projects.” and WHEREAS, WHEREAS, WHEREAS, WHEREAS, The EDA has entered into a contract with Rebecca Rausch, DBA Neon Lizard Creative in an amount not to exceed $10,000 to implement events which promote customer traffic in commercial areas affected by the 2019 road reconstruction projects; and The EDA has established a subcommittee to oversee implementation of the Contract and expenditure of funds; and The EDA wishes to provide funding to the Business Engagement Committee to support a minimum of three resident and business construction communication events to be held prior to, during and near the end of major construction activities; and The EDA wishes to amend the contract with Rebecca Rausch, DBA Neon Lizard Creative to increase the contract amount from $10,000 to an amount not to exceed $32.770. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The EDA hereby allocates up to $46,420 from the EDA Special Revenue Fund to implement events and communication which promote customer traffic in commercial areas affected by the 2019 road reconstruction projects, including an allocation of $2,500 to the Business Engagement Committee to support construction communication events. 3. The EDA Executive Director is authorized to execute an amendment to the city’s standardized professional services contract with Rebecca Rausch, DBA Neon Lizard Creative increasing the amount of the contract from $10,000 to an amount not to exceed $32,770 to implement events which promote customer traffic in commercial areas affected by the 2019 road reconstruction projects, subject to review by the City Attorney. 4. The 2019 budget for Fund 240 will be amended to reflect this expenditure. PASSED AND ADOPTED THIS 11th DAY OF MARCH 2019. VOTE Chromy Braid Sheehan- Kerber Briggs Boucher- Hoese Aye ☐☐☐☐☐ Nay ☐☐☐☐☐ Absent ☐☐☐☐☐ Abstain ☐☐☐☐☐ ______________________________ Michael Plante, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE:March 11, 2019 AGENDA #:8B PREPARED BY:Casey McCabe, Community Development Director AGENDA ITEM:CONSIDERATION OF DOWNTOWN DEVELOPMENT PROPOSAL DISCUSSION: Introduction The purpose of this agenda item is to consider a request for financial assistance related to a new business development being proposed near the West Avenue / CH21 intersection. History Over the past year, city staff has met multiple times with a group who are interested in starting a brewery, to be known as Mana Brewing (Mana). This group has considered multiple sites over the past months and have now identified a vacant site on the edge of downtown Prior Lake at the southwest corner of the West Avenue / CH21 intersection; however, the land acquisition costs and site preparations costs are higher than they were anticipating. During the February meeting, EDA members received an initial inquiry into possible financial assistance to allow for the development of an approximate 7,000 square foot commercial building and parking lot. Following discussion, the EDA directed staff to continue to work with Mana to explore assistance options and return to the EDA at a future meeting. Current Circumstance City staff met with the Mana development team on February 22nd to further explore options for financial assistance. Staff and Mana considered the city acquiring a portion of the property that is not needed for the development or the city potentially constructing a public parking lot which would benefit the private development through decreased overall development costs and benefit the public by providing additional parking spaces. After consideration, these options were not supported by staff due to the initial development costs and ongoing maintenance costs. Of the options considered, the development team and staff feel a deferred EDA loan to address poor soils on the site may be the best option. As requested by the EDA in February, the Mana development team has provided an estimate of building and site development costs (attached). Mana has prepared a purchase agreement for the property in the amount of $600,000 that will likely be presented to the property owner prior to the EDA discussion of this item. In addition, Mana has identified construction costs of $1,732,000 (including $258,500 for soil correction costs as detailed below), plus build-out costs of $315,000 and architectural and engineering fees of $75,000, for a total project cost of $2,722,000. 2 For this discussion, staff will ask the EDA to focus on the costs which specifically relate to soil issues on the site, estimated at $258,500. Mana provided the geotechnical report for the site and an overall breakdown of soil related costs. Soils/Foundation line item breakdown of $180,000: o Soil export/import due to poor soils on site: $152,000 o Earthwork dewatering due to high water tables: $10,000 o Drain tile around building due to water issues on site: $8,000 o Pavement soil corrections: $10,000 Utilities dewatering due to high water tables: $20,000 Additional Class 5 base, and pavement section depths due to poor soils on site: $20,000 Additional Class 5 under curbs, sidewalks, and patio due to poor soils on site: $14,500 Concrete foundations non-typical at building foundations, extended footings at stoops, trash enclosures, and columns, as well as thicker slabs per geotech: $24,000 Mana has indicated they have been pre-qualified and will be financing this project through an SBA 7(a) loan that is being processed through Byline Bank; however, the financing cannot be finalize until all sources and uses of funds are identified and they have an executed purchase agreement. Conclusion The development team will be in attendance to present their concept to the EDA and answer any questions. Mana is seeking financial assistance to address poor soil conditions and they hope to begin construction of this project in 2019. City staff has prepared a draft Business Subsidy Agreement (BSA) for EDA consideration. The BSA does not currently identify the specific dollar amount of assistance but as proposed, the funds would be provided as a deferred loan. Under the terms of the BSA, the funds would be used for reimbursement of costs associated with i) soil corrections, including soil export/import; ii) utility and earthwork dewatering due to high water tables; and iii) utility connections on and around the project site to allow for construction of a brewery building of approximately 7,000 square feet. For two years from the benefit date, which is the date the first payment is received, the repayment of the business subsidy would be deferred, and no interest would accrue, provided Mana is not in breach of the agreement. At the end of two years the business subsidy would be forgiven in full if Mana has met the goals of the BSA, including completion of the project to the City’s satisfaction within one year of the benefit date and operation of the brewery on the project site for two years from the benefit date. If, at the end of the two-year period, Mana has not met the goals of the BSA, the funds would be due and payable. The BSA has been drafted to include protections for the City/EDA, including language that requires construction to begin in 2019 and be completed in 2020 and a certificate of occupancy be issued before the financial assistance is provided. 3 If the EDA feels it is appropriate, funds from the EDA Special Revenue Fund may be used to assist with this development. These funds are available for use by the EDA to accomplish certain economic development initiatives, including: economic development and redevelopment loans and incentives; efforts to facilitate commercial development and redevelopment; and enhancing the character of commercial areas. When considering potential assistance for this project, city staff wants to ensure the EDA is aware the proposed property is not a platted; however, it is a lot of record and this project will likely be built without the city requiring the property to be further subdivided. If the property is platted or subdivided, development trunk fees in the approximate amount of $35,000-$40,000 would be required; because this property is considered a lot of record, the developers are not be required to make this payment as part of the platting process. This information is included in the report as EDA members have previously commented that potential savings of development fees on certain infill lots should be factored in if the EDA is considering project assistance. ISSUES: FINANCIAL IMPACT: The attached Business Subsidy Agreement assumes a business subsidy of less than $150,000. Minnesota Statutes and the City of Prior Lake Business Subsidies Policy require a public hearing before granting a business subsidy that exceeds $150,000. If the EDA would like to consider a subsidy more than $150,000, direction should be provided to staff to schedule a public hearing. Potential costs related to financial assistance will impact the EDA Special Revenue Fund balance. The preliminary fund balance as of February 28, 2019 (preliminary/not audited) in the EDA Special Revenue Fund is approximately $527,000. The EDA has allocated some of this funding to future projects and must maintain a minimum fund balance, which leaves approximately $400,000 available for identified economic development initiatives. ALTERNATIVES:1. Motion and second to approve a resolution approving a Business Subsidy Agreement with Mana Brewing LLC in an amount determined appropriate by the EDA. 2. Motion and second to deny a resolution approving a Business Subsidy Agreement with Mana Brewing LLC. 3. Provide direction to staff and continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENT: Alternative No. 1 1. General Location Map 2. Site Plan Concept 3. Unsuitable Soils Sketch 4. Construction Budget 5. Business Subsidy Agreement General Location Map PRO P O S E D B U I L D I N G 7,000 S F NO PARKING 12 47 STALLS 7 15 72 4 OUTDOOR SEATING AREA PROPOSED ROAD EXISTING TREE AND WETLAND AREA LANDSCAPE SCREEN 13.66' 5' ADDITIONAL STORMWATER MANAGEMENT AREA 1.2 A C R E S FUTURE PATIO/LANDSCAPE 10'10'Common Ground Alliance N:\0020670.00\DWG\0020670V-SITE.DWG1 1 . . 0020670 Call 48 Hours before digging: 811 or call811.com PRIOR LAKE, MN 02/27/2019 . . . © 2018 Westwood Professional Services, Inc. PRIOR LAKE RETAIL - MANA BREWING SITE PLAN EXHIBIT 16196 VISONARY HEIGHTS CIR NW PRIOR LAKE, MN, 55372 PRIOR LAKE RETAIL - MANA BREWINGXX/XX/XX MANA BREWING LLC XX/XX/XX . . . . . . . . . . . . 0' SHEET NUMBER: FIELD WORK DATE: DATE: PREPARED FOR: OF FIELD CREW: DRAWN: CHECKED: DESIGNED:INITIAL ISSUE: REVISIONS: Phone (952) 937-5150 12701 Whitewater Drive, Suite #300 Fax (952) 937-5822 Minnetonka, MN 55343 Toll Free (888) 937-5150 DATE:LICENSE NO. I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LANDSCAPE ARCHITECT UNDER THE LAWS OF THE STATE OF MINNESOTA 20'40'60' EAGLECREEKAVENUESE WESTAVENUESERACINE STREET SE B-1 B-6 B-11 B-12 B-13 B-14 Sheet: of Fig: Project No: B1706454 Drawn By: Date Drawn: Checked By: Last Modified: 7/18/17 Scale:F:\2017\B1706454.dwg,Geotech,7/18/201712:56:13PMDrawing No: Base Dwg Provided By:SOILBORINGLOCATIONSKETCHGEOTECHNICALEVALUATIONPRIORLAKEMIXED-USEDEVELOPMENTEAGLECREEKAVENUEATWESTAVENUESEPRIORLAKE,MINNESOTAB1706454 1"= 60' JAG 7/10/17 BJM FAX (952) 995-2020 PH. (952) 995-2000 Minneapolis, MN 55438 11001 Hampshire Avenue S 0 SCALE: 1"= 60' 60'30' NDENOTES APPROXIMATE LOCATION OF STANDARD PENETRATION TEST BORING DENOTES APPROXIMATE LOCATION OF PREVIOUS ALLIED ENGINEERING BORINGS March 6, 2019 Start‐Completion Cost SF Cost % of Cost General Conditions 60,000.00$         8.57$                        3.46% Design 75,000.00$         10.71$                      4.33% Permits 12,826.00$         1.83$                        0.74% MetCouncil 57,460.00$         8.21$                        3.32% Construction Staking  and Alta Survey 12,000.00$         1.71$                        0.69% Testing Agency 13,500.00$         1.93$                        0.78% Earthwork 130,000.00$       18.57$                      7.51% Utilities 90,000.00$         12.86$                      5.20% Paving 82,000.00$         11.71$                      4.73% Curb and Gutter 60,000.00$         8.57$                        3.46% Fencing around patio 10,000.00$         1.43$                        0.58% Soils/Foundations 180,000.00$       25.71$                      10.39% Irrigation 14,000.00$         2.00$                        0.81% Landscape 20,000.00$         2.86$                        1.15% Concrete Foundation and slab 165,000.00$       23.57$                      9.53% Masonry/Brick on building 54,375.00$         7.77$                        3.14% Structural Steel 115,000.00$       16.43$                      6.64% Steel Erection incl above ‐$                          0.00% Rough Carpentry 5,000.00$           0.71$                        0.29% Carpentry Materials 4,000.00$           0.57$                        0.23% Waterproofing ‐$                     ‐$                          0.00% Roofing 50,000.00$         7.14$                        2.89% Sheet Metal incl above ‐$                          0.00% Dock Equipment 7,500.00$           1.07$                        0.43% Caulking 6,000.00$           0.86$                        0.35% HM Doors and Frames 6,000.00$           0.86$                        0.35% Overhead Doors 12,500.00$         1.79$                        0.72% Glass and Glazing 40,000.00$         5.71$                        2.31% EIFS or other exterior 45,000.00$         6.43$                        2.60% Steel Framing, Drywall, barriers 128,000.00$       18.29$                      7.39% PAINTING 5,000.00$           0.71$                        0.29% Aluminum Sun Shades ‐$                     ‐$                          0.00% Fabric Awnings ‐$                     ‐$                          0.00% Signage (2 Building and handicap) 15,000.00$         2.14$                        0.87% FIRE EXTINGUISHERS 600.00$               0.09$                        0.03% BIKE RACK 1,500.00$           0.21$                        0.09% Mechanical 60,000.00$         8.57$                        3.46% Plumbing 36,000.00$         5.14$                        2.08% Fire Protection 18,000.00$         2.57$                        1.04% Electrical 81,745.00$         11.68$                      4.72% Owner contingency ‐$                     ‐$                          0.00% Sub Total 1,673,006.00$    239.00$                   Subtotal 3.6% 59,000$               8.43$                        3.5% Final Contract 1,732,006.00$   247.43$                   Final Contract Description Mana Brewing 1 building totaling 7,000 SF 6/1/2019‐12/31/2019 BUSINESS SUBSIDY AGREEMENT This Business Subsidy Agreement (“Agreement”) is entered into this ___ day of ________, 2019, by and between the City of Prior Lake Economic Development Authority, a Minnesota political subdivision formed pursuant to Minn. Stat. Chap. 469 (“City”) and Mana Brewing LLC, a Minnesota limited liability company (“Mana”). Recitals WHEREAS, Minn. Stat. 116J.993 – 116J.995 (“Business Subsidy Act”) authorizes the City to grant business subsidies, such as tax increment financing, tax abatement, and other business subsidies for private development projects, in order to achieve a public purpose; and WHEREAS, in order to grant a business subsidy, the City must adopt a business subsidy policy in compliance with Minn. Stat. 116J.994, Subd. 2 to establish guidelines and criteria regarding the granting of business subsidies; and WHEREAS, on August 26, 2013 the City adopted an Amended Business Subsidy Policy in compliance with Minn. Stat. 116J.994, Subd. 2; and WHEREAS, on August 26, 2013 the City adopted a Local Business Incentives Policy establishing guidelines and criteria regarding the use of local business incentives that are not subject to all of the requirements and limitations set forth by Minn. Stat. 116J.993-116J.995; and WHEREAS, Mana has applied for a business subsidy under the City’s Local Business Incentives Policy to develop the property located in Prior Lake, MN 55372, located in Section 02, Township 114, Range 022, PID: 259021210 (“Project Site”), and to construct on the Project Site an approximately 7,000 square foot building from which to operate a brewery (“Project”); and WHEREAS, the Project will achieve several public purpose objectives, including specifically, to enhance and diversify the City’s tax base, to provide employment opportunities in the City, to help provide access to services for residents of the City, to achieve development on a site that may not be developed without business subsidies assistance; to encourage development of a commercial area in the City that results in higher quality development and private investment; and to offset increased costs of development of a specific property when the unique physical characteristics of the site may otherwise preclude private investment; and WHEREAS, the Project is consistent with the City 2030 Comprehensive Plan and 2040 Vision and Strategic Plan; and WHEREAS, the requested business subsidy was considered by the City on March 11, 2019; and WHEREAS, the City approved a business subsidy for the Project in the form of an Economic Development Authority forgivable loan (“Business Subsidy”). NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Recitals. The recitals set forth above are incorporated herein and made part of this Agreement. 2. Definitions. The definitions set forth in Minn. Stat. 116J.993 are incorporated herein and made part of this Agreement. The “Benefit Date” is defined by Minn. Stat. 116J.993, Subd. 2 as the “date that the recipient receives the business subsidy” and for purposes of this Agreement shall mean the date that Mana receives the first payment of any portion of the Business Subsidy. 3. Description of the Business Subsidy. The City hereby grants to Mana a Business Subsidy in the form of a forgivable loan in the amount not to exceed $_____________ to assist with costs (“Eligible Project Costs”) related to, i) soil corrections, including soil export/import; ii) utility and earthwork dewatering due to high water tables; and iii) utility connections (“Eligible Project Work”). 4. Loan Payments. The City shall not issue any loan funds under this Agreement until all of the following conditions have been met: ➢ This Agreement has been approved by the City and fully executed by both parties. ➢ Construction on the Project began prior to September 1, 2019 and is completed prior to August 31, 2020. ➢ The Eligible Project work for which payment is being requested has been performed to the satisfaction of the City. The City shall inspect the Eligible Project Work for which payment is being requested and shall not issue any loan funds if work is found to be unsatisfactory in the City’s sole discretion. ➢ Mana has submitted invoices and proof of payment for the Eligible Project Work for which payment is being requested. ➢ A Certificate of Occupancy has been issued by the City of Prior Lake for the Project. 5. Goals. The City shall not forgive the loan as set forth in paragraph 6 below unless Mana has met the following goals (“Goals”): a. Completion of the Project to the City’s satisfaction by August 31, 2020. b. Operation of a brewery on the Project Site for two years from the Benefit Date. 6. Forgiveness or Repayment. For two years from the Benefit Date, the repayment of the Business Subsidy shall be deferred, and no interest shall accrue, provided Mana is not in breach of this Agreement. At the end of two years the Business Subsidy shall be forgiven or repaid as follows: a. Forgiveness. If, at the end of the two-year period, Mana has met the Goals, the Business Subsidy shall be forgiven in full. b. Repayment. If, at the end of the two-year period, Mana has not met the Goals the Business Subsidy shall be immediately due and payable and Mana shall repay the Business Subsidy beginning on the first day of the first month following the expiration of the two-year period. Repayment shall occur by monthly payments amortized over a three-year period with interest accruing at the Implicit Price Deflator rate as defined in Minn. Stat. 116J.994, Subd. 6. 7. Use of Business Subsidy. The Business Subsidy shall be used for reimbursement of Eligible Project Work costs associated with i) soil corrections, including soil export/import; ii) utility and earthwork dewatering due to high water tables; and iii) utility connections on and around the Project Site to allow for construction of a brewery building of approximately 7,000 square feet. 8. Statement of Need for Business Subsidy. Mana represents that it is eligible to receive the Business Subsidy pursuant to Minn. Stat. § 116J.994. Mana asserts that without the Business Subsidy, Mana would not proceed with the Project as proposed. 9. Public Purpose Statement. The City and Mana agree that the public purposes served by this Business Subsidy are as follows: to enhance and diversify the City’s tax base, to provide employment opportunities in the City, to help provide access to services for residents of the City, to achieve development on a site that may not be developed without business subsidies assistance; to encourage development of a commercial area in the City that results in higher quality development and private investment; and to offset increased costs of development of a specific property when the unique physical characteristics of the site may otherwise preclude private investment. 10. Wage and Job Goals of the Project. At the March 11, 2019 Economic Development Authority meeting, the City determined that the creation and retention of jobs is not a goal of this Business Subsidy, therefore the wage and job goals are set to zero pursuant to Minn. Stat. § 116J.994, Subd. 4. 11. Name and Address of Parent Corporation (if applicable). Mana does not have a parent corporation. 12. Notice. Required notices to Mana shall be in writing, and shall be either hand-delivered to Mana, its employees or agents, or mailed to Mana by certified mail at the following address: Mana Brewing LLC 16196 Visionary Heights Circle NW Prior Lake, MN 55372 Notices to the City shall be in writing and shall be either hand-delivered or mailed to the City by certified mail at the following address: City of Prior Lake Attn: City Manager 4646 Dakota Street SE Prior Lake, MN 55372 Notices shall be deemed effective on the date of receipt. Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified, 10 days prior to the effective date of such change. 13. Other Business Subsidies Received for this Project. Nothing herein shall preclude Mana from receiving additional financial assistance for the Project. 14. Indemnity. Mana will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Mana, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Mana, its agents, contractors and employees, relative to this Agreement. 15. Successors and Assigns. This Agreement and all terms, conditions and obligations contained herein shall be binding upon and inure to the benefit of the City and Mana and their respective successors and assigns. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 16. Audit Disclosure and Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by Mana under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. The books, records, documents and accounting procedures and practices of Mana or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated by Mana in performing any of the functions of the Cit y during performance of this Agreement is subject to the requirements of the Data Practice Act and Mana shall comply with those requirements as if it were a government entity. All subcontracts entered into by Mana in relation to this Agreement shall contain similar Data Practices Act compliance language. 17. Non-Discrimination. During the performance of this Agreement, Mana shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. Mana shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. Mana shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for Project work and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for Project work. Mana further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 18. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the Agreement void. 19. Breach, Notice, and Remedies. (a) Breach. If for any reason Mana violates any provision of this Agreement or fails to meet any requirement of this Agreement, Mana shall be deemed to be in breach of this Agreement. (b) Notice. The City shall provide Mana written notice (“Notice”) of an alleged breach. The Notice shall include a description of the nature of the breach, a description of the actions or accomplishments which must occur to cure the breach, and a reasonable time to cure the breach which will be at least 15 calendar days. Notices shall be sent in accordance with paragraph 12. (c) Remedies. If Mana fails to cure the breach within the time provided in the Notice, the City may pursue any remedy at law or in equity, whether or not set forth in this Agreement, which remedies include, but are not limited to, the following: I. The City may demand repayment of all or a portion of the Business Subsidy and declare all such amounts immediately due and payable. II. The parties hereto agree that, in the event of a default by Mana in the performance of the obligations set forth in this Agreement, money damages shall not provide an adequate remedy. As a result, the parties understand and agree that, in the event of a default by Mana in the performance of its obligations under this Agreement, the City shall be entitled to also seek specific performance by Mana of this Agreement. 20. Enforcement. Mana shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 21. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 22. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Agreement. 23. Waiver. No action nor failure to act by the City shall constitute a waiver of any right or duty afforded it under the Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 24. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 25. Not in Contravention of Law . It is intended that nothing contained herein be in contravention of law. In the event that any provision herein conflicts with Minn. Stat. §§ 469.1812 to 469.1815, or 116J.994, the statutory provisions shall prevail. This business subsidy agreement shall be interpreted and given effect as if the terms or prohibitions of such statutory sections have been included herein. 26. Limitation on City's Liability. It is understood and agreed by Mana that nothing in this Agreement or in any other document executed by the City in connection with the granting of the Business Subsidy, or any obligation imposed upon the City or breach thereof, shall give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers or shall obligate the City financially in any way except with respect to the application of taxes to be abated pursuant to this Agreement. No failure of the City to comply with any term, condition, covenant or agreement herein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charges except to the extent that the same can be paid or recovered from the taxes abated. No execution on any claim, demand, cause of action or judgement shall be levied upon or collected from the general credit, general funds or taxing powers of the City. In executing this Agreement, the City has not obligated itself except with respect to the abatement of taxes as provided. The obligations arising from this Agreement do not now and shall never constitute an indebtedness or a loan of the credit of the City or the City's general taxing powers within the meaning of any constitutional or statutory provision whatsoever. It is further understood that the City shall not be liable for any expenses related hereto. IN WITNESS WHEREOF this Agreement has been duly executed and delivered by the parties hereto as of the date above written. (Remainder of page intentionally blank) CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY Michael Plante Its: Executive Director David Chromy Its: President STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of ___________, 2019, by Michael Plante and David Chromy, the Executive Director and President of the City of Prior Lake Economic Development Authority, a Minnesota political subdivision formed pursuant to Minn. Stat. Chap. 469, on behalf of the subdivision. __________________________________ Notary Public MANA BREWING LLC Travis Bechthold Its: STATE OF MINNESOTA ) ) ss. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this day of ___________, 2019, by Travis Bechthold, the _________________ of Mana Brewing LLC, a Minnesota limited liability company, on behalf of said company. __________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: Hoff Barry, P.A. 775 Prairie Center Drive Suite 160 Eden Prairie, MN 55344 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-02 EDA A RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT WITH MANA BREWING LLC TO ASSIST WITH PROPERTY DEVELOPMENT COSTS Motion By: Second By: WHEREAS,Minn. Stat. §§ 116J.993 – 116J.995 authorize the City to grant business subsidies, such as tax increment financing, tax abatement, and other business subsidies for private development projects, to achieve a public purpose; and WHEREAS,on August 26, 2013 the City adopted an Amended Business Subsidy Policy in compliance with Minn. Stat. § 116J.994, Subd. 2; and WHEREAS, on August 26, 2013 the City adopted a Local Business Incentives Policy establishing guidelines and criteria regarding the use of local business incentives that are not subject to the requirements and limitations set forth by provision of Minn. Stat. 116J.993-116J.995; and WHEREAS,Mana Brewing LLC has applied for a business subsidy under the City’s Local Business Incentives Policy to develop the property located in Prior Lake, MN 55372, located in Section 02, Township 114, Range 022, PID: 259021210 (“Project Site”), and to construct on the Project Site an approximately 7,000 square foot building from which to operate a brewery (“Project”); and WHEREAS, WHEREAS, there has been presented before the City of Prior Lake Economic Development Authority a Business Subsidy Agreement by and between the City of Prior Lake Economic Development Authority and Mana Brewing LLC setting forth the terms of the business subsidy; and On March 11, 2019, the City of Prior Lake Economic Development Authority approved a business subsidy for the Project in the form of an Economic Development Authority deferred forgivable loan. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY as follows: 1. The recitals set forth above are incorporated herein. 2. Based upon the information presented, the Economic Development Authority makes the following findings: a. the Project will achieve several public purpose objectives, including specifically, to enhance and diversify the City’s tax base, to provide employment opportunities in the City, to help provide access to services for residents of the City, to achieve development on a site that may not be developed without business subsidies assistance; to encourage development of a commercial area in the City that results in higher quality development and private investment; and to offset increased costs of development of a specific property when the unique physical characteristics of the site may otherwise preclude private investment. b. the Project is consistent with the City 2030 Comprehensive Plan and 2040 Vision and Strategic Plan. c. the creation and retention of jobs is not a goal of this business subsidy; therefore, the wage and job goals are set to zero pursuant to Minn. Stat. § 116J.994, Subd. 4. 3. Based upon the recitals and the findings both set forth above, the Economic Development Authority approves a business subsidy in the form of a deferred forgivable loan to Mana Brewing LLC as set forth in the Business Subsidy Agreement in an amount not to exceed $____________. 4. The Economic Development Authority authorizes the use of Economic Development Authority Special Revenue Funds [Fund 240] to assist this development project in an amount not to exceed $___________. 5. The Economic Development Authority approves the Business Subsidy Agreement subject to review by the City Attorney. 6. The 2019 budget for Fund 240 will be amended to reflect this expenditure. 7. The Economic Development Authority President and Executive Director are hereby authorized to execute on behalf of the EDA the Business Subsidy Agreement and any other related documents requiring execution by the EDA. PASSED AND ADOPTED THIS 11th DAY OF MARCH 2019. VOTE Chromy Braid Sheehan- Kerber Briggs Boucher- Hoese Aye ☐☐☐☐☐ Nay ☐☐☐☐☐ Absent ☐☐☐☐☐ Abstain ☐☐☐☐☐ ______________________________ Michael Plante, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE:March 11, 2019 AGENDA #:9A PREPARED BY:Casey McCabe, Community Development Director AGENDA ITEM:JOINT EDA/CEC DISCUSSION TOPICS DISCUSSION:Introduction One of the EDA’s goal for 2019 is to increase engagement with other committees, including the Citizen Engagement Committee (CEC), to promote partnerships and collaboration. The purpose of this agenda item is to allow for a discussion between the CEC and the EDA. History The Citizen Engagement Committee was created in 2017 to educate and engage residents in Prior Lake city government. The CEC seeks to integrate citizen engagement into the culture of city hall by bolstering city communications and engagement to reach more people, advising the city on major issues as assigned by the council and educating residents on city operations and initiatives. Current Circumstance Suggested EDA and CEC discussion topics may include, but are not limited to, information about the current activities of the CEC; information about the current activities of the EDA; what role the CEC may play in upcoming construction informational events for residents and business owners; partnership/collaboration opportunities; and, any other projects or topics of interest to the committees. Conclusion The Business Engagement Committee (BEC) and Bolton & Menk have identified a date of Thursday, April 11th for the first construction informational event of 2019; the event will be held at Fong’s Event Center and will begin at 4:00 p.m. This agenda also includes a request for the EDA to enter into a contract with Neon Lizard Creative to encourage pedestrian traffic during construction activities in the downtown and South Lake Village areas through communication and marketing efforts during the summer of 2019. CEC assistance in the promotion of these and future events of this type would be very beneficial. ALTERNATIVES:This is primarily a discussion item; however, the EDA may find it appropriate to make a motion and second to request from the CEC, and/or staff as appropriate, assistance related to partnership opportunities or communication of EDA initiatives in 2019.