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Home My WebLink About08 12 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, August 12, 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/August 12, 2019 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. July 22, 2019 4. CONSENT AGENDA A. Development Update (7/31/2019) 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS A. None 7. PUBLIC HEARINGS A. None 8. OLD BUSINESS A. Public Arts 9. NEW BUSINESS A. Resolution to Approve the Proposed 2019 EDA Tax Levy and Budget B. #PLWorthIt Wish Book 10. OTHER BUSINESS A. Staff Updates B. Commissioner Comments a. Committee Liaison, Activity & Initiatives Update 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 July 22, 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. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE, TO APPROVE THE AGENDA. Ayes by Chromy, Bou- cher-Hoese, Braid, Briggs and Sheehan-Kerber. The motion carried 5-0. 3. APPROVAL OF MEETING MINUTES A. June 10, 2019 MOTION BY BRIGGS, SECONDED BY SHEEHAN-KERBER TO APPROVE THE JUNE 10, 2019 MEETING MINUTES. Ayes by Boucher-Hoese, Braid, Briggs and Sheehan-Kerber. The motion carried 5-0. 4. CONSENT AGENDA A. Development Update (06/30/2019) B. EDA Revenue and Expenditure Report MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Briggs, and Braid. The motion carried 5-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PRESENTATIONS None 7. PUBLIC HEARING No Public Hearings 8. OLD BUSINESS A. EDA Funding Options MCCABE provided an update on a City Council budget work session discussion. McCABE shared the Council seemed to be supportive of an increased EDA levy and total budget; however, Council direction was to keep staff personal costs in the EDA budget, opposed to moving those costs to the general fund. BOUCHER-HOESE confirmed whether the EDA item is a separate line item on tax statements. MCCABE stated that upon review, previously the EDA line item was a separate line item until more recent years when the EDA levy was incorporated into the City line item on the property tax statements. The maximum amount the EDA can levy is .01813% of the city’s estimated market value. For 2019, that amount is approxi- mately $650,000. Discussion ensued related to EDA levy amounts and recent commercial growth being reflective of good stew- ardship of available EDA funds. MOTION BY BRIGGS, SECONDED BY CHROMY TO DIRECT STAFF TO PREPARE A BUDGET AND RES- OLUTION FOR THE NEXT MEETING REFLECTING AN EDA LEVY IN AN AMOUNT NOT TO EXCEED $480,000 WHICH INCLUDES STAFF SALARIES. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Briggs, and Braid. The motion carried 5-0. B. Arts Committee Formation MCCABE shared that since the last meeting staff has completed initial research into the formation of an arts committee. Sheila Smith will be attending the October 14th EDA meeting and staff is requesting additional direc- tion in advance of that presentation related to the formation of an arts committee. SHEEHAN-KERBER recommended an arts group be privately funded and managed. BRIGGS stated that the City should have a role in this type of group; prefers structuring the group with the ability to have both public and private partnership opportunities. BOUCHER-HOESE suggested involving community members in this type of committee. CHROMY recommended that the City should have possible members attend the October 14th presentation. Discussion ensued regarding possible committee composition and annual goals. BOUCHER-HOESE suggested meeting with individuals who have expressed interest in the formation of an arts committee prior to the development of by-laws and formal committee creation. MOTION BY BRIGGS, SECONDED BY BRAID TO DIRECT STAFF TO PREPARE A RESOLUTION EXPLOR- ING AN ARTS COMMISSION IN PRIOR LAKE WITH TWO EDA COMMISSION MEMBERS. Ayes by Chromy, Boucher-Hoese, Sheehan-Kerber, Briggs, and Braid. The motion carried 5-0. C. Community Partner Designation SCHWABE provided an update on recent discussion with the Business Engagement Committee related to the development of a program recognizing businesses. BRIGGS suggested the EDA may choose to draft resolutions recognizing community partners. He recom- mended staff provide feedback to the other advisory committees to invite the groups to recognize those partners via resolution as well. 9. NEW BUSINESS A. #PLWorthIt Extension MCCABE shared that discussion of extending the #PLWorthIt campaign into 2020 is a result of the delayed staging for the 13/21 intersection improvement project as well as an opportunity to expand the campaign beyond its current role of generating customer traffic in areas affected by construction to a program to promote public/pri- vate partnership investments in the community. PLANTE explained that County Road 21 will be shut down between West Ave and Main Ave beginning in mid- August through the fall. BRIGGS shared that while the original intention of the #PLWorthIt campaign was to support local businesses; it has potential to be utilized for other purposes for the benefit of the community. BRAID confirmed that the discussion today is to gauge interest in the extension. MCCABE shared information related to a “wish list” concept that was prepared by another community to identify projects and amenities that were desired by the community that businesses or donors could choose to purchase or sponsor either privately or through a public/private partnership. The EDA supports the idea of continuing the #PLWorthIt campaign and directed staff to return to the EDA with additional information at the next meeting. B. 21/13 Construction Update McCABE provided an update of pending road construction activities. 10. OTHER BUSINESS A. Staff Updates i. Upcoming #PLWorthIt Events B. Commissioner Comments i. Technology Village CHROMY provided an update that Technology Village staff have been in conversation with DCTC and MN State University Mankato about a campus concept in Scott County that perhaps Technology Village could be incorporated into. ii. Mana Brewing Planning to close on the property soon and they are working with city staff on liquor licensing requirements. iii. Commissioner Liaison Update SHEEHAN-KERBER recommended adding a regular agenda item to allow for the commissioners to provide the group updates on advisory committee activities/initiatives. iv. Arts BRIGGS shared that Nuvera will consider offering the use of their building wall adjacent to CR 21 for a mural, subject to approval of Nuvera corporate. 11. ADJOURNMENT MOTION BY CHROMY, SECONDED BY SHEEHAN-KERBER TO ADJOURN THE MEETING. With all in favor, the meeting adjourned at 6:07 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: August 12, 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 July 31, 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: August 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 July 31, 2019. Number of Permits Declared Value Number of Permits Declared Value Number of Permits % Increase / (% Decrease) Declared Value % Increase / (% Decrease) Single Family Dwellings 80 $24,087,742.00 69 $24,297,676.00 15.94 (0.86) Townhouses (# units)45 $7,804,007.00 39 $6,463,400.00 15.38 20.74 Multiple Units 0 $0.00 0 $0.00 n/a n/a New Commercial Industrial & Commercial 2 $1,620,000.00 1 $1,600,000.00 100.00 1.25 Residential 553 $3,886,365.00 517 $4,354,917.00 6.96 (10.76) Industrial & Commercial 17 $12,184,050.00 18 $2,849,400.00 (5.56)327.60 Mechanical 302 $0.00 395 $0.00 (23.54)n/a Mechanical (SF & TH)500 $0.00 432 $0.00 15.74 n/a TOTALS 1499 $49,582,164.00 1471 $39,565,393.00 1.90 25.32 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: August 12, 2019 AGENDA #: 8A PREPARED BY: PRESENTED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR CASEY MCCABE AGENDA ITEM: PUBLIC ARTS DISCUSSION: Introduction The purpose of this agenda item is to discuss the process to engage a muralist as part of the EDA’s efforts to enhance and promote public art in the community. History During the June and July meetings, EDA members were clear in their support for public arts, history and culture support economic development in the commu- nity. Current Circumstances The EDA provided direction to staff to prepare a resolution exploring the for- mation of an arts commission in Prior Lake. City staff completed some initial research into the formation of an arts commission following the meeting; how- ever, additional information was received from representatives of other commu- nities who recommended an alternate approach. Additional discussion and di- rection are needed from the EDA related to the preferred option to move a mural project forward in 2019. Conclusion Based on recent conversations with others involved in local government and the arts, staff believes it may be more productive for the EDA to secure a location and engage a muralist prior to the formation of an arts commission. Direction is needed related to the process to select a muralist, the type or style of art that is preferred and level of community engagement in this process. FINANCIAL IMPACT: No financial impact anticipated at this time. Costs related to a mural(s) are an- ticipated; however, there may be private/public sponsorship opportunities to as- sist with the cost. ALTERNATIVES: 1. Motion and a second to provide direction to staff and EDA members Bou- cher-Hoese and Sheehan-Kerber related to the engagement of a muralist. 2. Motion and a second to table action. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: August 12, 2019 AGENDA #: 9A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: RESOLUTION TO APPROVE THE PROPOSED 2020 EDA TAX LEVY AND BUDGET DISCUSSION: Introduction The purpose of this agenda item is to consider approving a proposed 2020 EDA tax levy and budget. Staff has provided a resolution for approval. History The EDA’s 2019 budget was approved by the City Council last December to in- clude the following primary factors:  The budget included an EDA tax levy of $150,000.  The budget included 50% personnel support for Community Development Director and Community Development Specialist [City Planner].  The budget included $4,350 in expenditures and $7,820 in revenues for Technology Village.  The total 2019 EDA budget was $149,817. Current Circumstances During the July 22nd meeting, the EDA provided direction to staff to prepare a budget and resolution reflecting an EDA levy in an amount not to exceed $480,000, including staff salaries. City staff has proposed a draft 2020 budget for EDA review, which is summarized as follows:  The budget revenue includes an EDA tax levy of $311,250.  The budget revenue includes a transfer of $161,250 from the General Fund to the EDA.  Revenues of $9,575 are anticipated from Technology Village leases which will offset the proposed Technology Village expenses of $5,100. Technol- ogy Village expenses do not include a rent subsidy.  $347,872 is budgeted for Professional Services expenses, which is a sig- nificant increase over previous years and reflects the EDA’s desire to con- tinue accomplishing identified economic development initiatives in 2020.  The total 2020 EDA budget is proposed at $489,575. Minnesota Statutes 469.107 provides authority to levy taxes for an Economic De- velopment Authority. A city may, at the request of the authority, levy a tax in any year for the benefit of the authority. The tax must be not more than 0.01813 per- cent of estimated market value. 2 Based on 2020 preliminary valuation data, Prior Lake is anticipating a total esti- mated market value of $3,876,617,100, excluding exempt property, which would allow for a maximum EDA tax levy of $702,831; city staff is proposing an EDA tax levy of $311,250. ISSUES: Staff would appreciate direction from the EDA related to the proposed 2020 budget. The 2019 budget included an allocation of $750 to the BEC for commu- nication purposes. Instead of creating a line item within the EDA budget, this funding was made available to the BEC from the EDA Professional Services Fund. City staff anticipates the same amount of funding would again be made available to the BEC in 2020 from the EDA Professional Services Fund. FINANCIAL IMPACT: The approved 2020 EDA budget will be forwarded to the City Council for review and approval. ALTERNATIVES: 1. Motion and a second to approve a resolution requesting City Council approval of the proposed 2020 EDA tax levy of $311,250 and a total budget of $489,575, which includes a transfer of $161,250 from the General Fund. 2. Motion and a second to approve a resolution requesting City Council approval of a 2020 EDA tax levy and total budget in another amount as determined by the EDA. 3. Provide direction to staff and continue discussion at a future meeting. RECOMMENDED MOTION: Alternative #1. ATTACHMENT: 1. Proposed 2020 EDA budget 08/06/2019 BUDGET REPORT FOR CITY OF PRIOR LAKE GL NUMBER 2018 2019 2020 AND ORIGINAL ORIGINAL DEPT REQUESTED ACCOUNT DESCRIPTION BUDGET BUDGET BUDGET ESTIMATED REVENUES Dept 00000.00 - GENERAL TAXES 240-00000.00-31010.00 Current Property Taxes - General Purpos 140,000 150,000 311,250 TAXES 140,000 150,000 311,250 INTEREST (LOSSES) ON INVESTMENTS 240-00000.00-36210.00 Interest Earnings 2,700 3,300 7,500 INTEREST (LOSSES) ON INVESTMENTS 2,700 3,300 7,500 TRANSFERS IN 240-00000.00-39203.00 Transfer from Other Funds 161,250 TRANSFERS IN 161,250 Totals for dept 00000.00 - GENERAL 142,700 153,300 480,000 Dept 46503.00 - TECH VILLAGE INCUBATOR CHARGES FOR SERVICES 240-46503.00-34760.02 Facility Rental - EDA 7,820 7,820 9,575 CHARGES FOR SERVICES 7,820 7,820 9,575 Totals for dept 46503.00 - TECH VILLAGE INCUBATOR 7,820 7,820 9,575 TOTAL ESTIMATED REVENUES 150,520 161,120 489,575 EXPENDITURES Dept 46500.00 - ECONOMIC DEVELOPMENT PERSONAL SERVICES 51100.01 Wages - Full Time 91,387 94,587 103,534 51100.05 Wages - Commissioners 3,000 3,000 3,000 51400.00 Compensated Absences 457 520 621 51450.00 Social Security Contributions 5,852 6,050 6,606 51451.00 Medicare Contributions 1,369 1,415 1,545 51460.00 PERA Contributions 6,914 7,154 7,825 51470.00 Health Insurance 7,208 7,549 8,352 51472.00 Retiree HCSP Contributions 240 240 240 51473.00 Dental Insurance 540 540 480 51474.00 Life Insurance 58 68 68 51477.00 Workers Compensation Insurance 428 494 582 PERSONAL SERVICES 117,453 121,617 132,853 CURRENT EXPENDITURES 52010.00 Office Supplies 250 53020.00 Legal Services 2,500 2,500 2,000 53100.80 Professional Services - General 22,824 20,000 347,872 53210.00 Telecommunications 250 100 250 53310.10 Training and Employee Development 500 500 53510.00 Required Notice Publication 250 54310.00 Memberships and Subscriptions 750 500 500 54320.00 Miscellaneous Expense 1,000 750 500 CURRENT EXPENDITURES 28,324 23,850 351,622 Totals for dept 46500.00 - ECONOMIC DEVELOPMENT 145,777 145,467 484,475 Dept 46503.00 - TECH VILLAGE INCUBATOR CURRENT EXPENDITURES 52010.00 Office Supplies 250 100 100 52400.10 Small Equipment - General 500 1,000 750 53020.00 Legal Services 500 250 500 53210.00 Telecommunications 2,000 750 750 54100.00 Business Assistance 1,820 1,000 1,000 54310.00 Memberships and Subscriptions 1,000 750 500 54320.00 Miscellaneous Expense 500 500 500 CURRENT EXPENDITURES 6,570 4,350 4,100 CAPITAL OUTLAY 55560.00 Furniture and Office Equipment 1,000 55570.00 Machinery and Equipment 1,250 CAPITAL OUTLAY 1,250 1,000 Totals for dept 46503.00 - TECH VILLAGE INCUBATOR 7,820 4,350 5,100 TOTAL EXPENDITURES 153,597 149,817 489,575 NET OF REVENUES/EXPENDITURES - FUND 240 (3,077)11,303 RESOLUTION 19-04 EDA A RESOLUTION APPROVING THE PROPOSED 2020 ECONOMIC DEVELOPMENT AUTHORITY TAX LEVY AND BUDGET Motion By: Second By: WHEREAS, State Statute 469.107 subd. 1 provides that a city may, at the request of the Economic Development Authority, levy a tax in any year for the benefit of the authority in an amount not to exceed 0.01813 percent of taxable market value; and WHEREAS, WHEREAS, The EDA proposes a 2020 tax levy for economic development purposes in the amount of $311,250; and The EDA proposes a transfer of $161,250 from the General Fund (Fund 101) to the EDA Special Revenue Fund (Fund 240); and WHEREAS, The EDA proposes a 2020 annual budget in the amount of $489,575. 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 requests that the Prior Lake City Council levy a special tax of $311,250 to be collected in 2020 pursuant to Minnesota Statutes 469.107. 3. The EDA requests that the Prior Lake City Council transfer $161,250 from the General Fund (Fund 101) to the EDA Special Revenue Fund (Fund 240). 4. The EDA requests that the Prior Lake City Council adopt the 2020 EDA annual budget in the amount of $489,575. PASSED AND ADOPTED THIS 12th DAY OF AUGUST 2019. VOTE Chromy Braid Sheehan- Kerber Briggs Boucher- Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, Executive Director 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: August 12, 2019 AGENDA #: 9B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: #PLWorthIt Wish Book DISCUSSION: Introduction The purpose of this agenda report is to discuss formation of a community ‘wish book’ related to expansion of the #PLWorthIt campaign. History To help area businesses during 2019/2020 construction activities, the EDA has identified opportunities to assist with customer attraction efforts in the downtown and South Lake Village area as part of the #PLWorthIt campaign. Current Circumstances During the July meeting, the EDA discussed expansion of the #PLWorthIt campaign beyond its current focus of generating customer traffic in areas affected by road construction to a program which promotes public/private partnership investments in the community. Part of the EDA’s discussion focused on a ‘wish book’ concept which would identify projects and amenities that are desired by the community but are not likely to be funded without private sponsorship. Conclusion The EDA was supportive of the wish book concept for Prior Lake. Staff is looking for direction from the EDA related to the assembly of such a list and potential subcommittee formation to ensure residents, non-profit and community organization, appointed/elected official and staff participation. ISSUES: Expansion of the #PLWorthIt campaign will require additional planning, volunteers, management, collaboration and oversight to achieve the desired objectives. FINANCIAL IMPACT: The EDA previously approved overall expenditures of up to $46,420 for customer attraction efforts. Minimal financial support from the EDA would be anticipated to assemble some form of printed material. Anticipated future cost savings related to private/public partnership sponsorship opportunities are likely to be achieved. ALTERNATIVES: 1. Motion and second providing direction to staff related to the expansion of the #PLWorthIt Wish Book campaign. 2. Motion and second to continue discussion at a future meeting. RECOMMENDED MOTION: Alternative #1