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Home My WebLink About01 13 2020 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, January 13, 2020 – 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/2020/January 13, 2020 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. December 9, 2019 4. CONSENT AGENDA A. Development Update (12/31/2019) B. EDA Revenue & Expenditure Report C. BEC / Technology Village BOD Bylaw Amendments 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS A. None 7. PUBLIC HEARINGS A. None 8. OLD BUSINESS A. #PLWorthIt Wish Book 9. NEW BUSINESS A. Election of Officers B. Advisory Committee Appointments C. Consider Approval of a Purchase Agreement for Property at 4662 Dakota St. SE D. Consider Approval of a Purchase Agreement for Property at 4656 Pleasant St. SE 10. OTHER BUSINESS A. Staff Updates 1. Downtown Redevelopment 2. Sand Point Park Restaurant Concept 3. Downtown Mural B. Commissioner Comments 1. Committee Liaison, Activity & Initiatives Update i. Arts Committee/Task Force ii. Business Engagement Committee iii. Technology Village 11. ADJOURNMENT: 6:00 p.m. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 Economic Development Authority Meeting Minutes December 9, 2019 1. CALL TO ORDER PRESIDENT CHROMY called the meeting to order at 4:00 p.m. Present were Chromy, Sheehan-Kerber, Boucher- Hoese, Briggs and Braid. Also present were Assistant Manager Olson, Community Development Director McCabe and Planner Schwabe. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BRAID, TO APPROVE THE AGENDA. Ayes by Chromy, Sheehan-Kerber, Boucher-Hoese, Briggs and Braid. The motion carried 5-0. 3. APPROVAL OF MEETING MINUTES A. November 12, 2019 MOTION BY SHEEHAN-KERBER, SECONDED BY BRAID TO APPROVE THE NOVEMBER 12, 2019 MEET- ING MINUTES. Ayes by Chromy, Sheehan-Kerber, Boucher-Hoese and Briggs. Abstaining Braid. The motion carried 4-0-1. 4. CONSENT AGENDA A. Development Update (11/30/2019) MOTION BY BRIGGS, SECONDED BY CHROMY TO APPROVE THE CONSENT AGENDA. Ayes by Chromy, Sheehan-Kerber, Boucher-Hoese, 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. #PLWorthIt Wish Book SCHWABE provided an overview the questions staff has related to the #PLWishBook including, but not limited to the number of items in the wish book, preferred layout and distribution method. MCCABE shared information related to a recent opportunity with the Rotary. MCCABE shared information based on conversations from other communities including the necessity for dona- tion agreements, maintenance, lifespan of the donation, expectation management, etc. Other communities rec- ommended matching grant opportunities from the city to maintain a certain level of control of the project. He shared that the City of Mankato does not typically take partial donations. OLSON stated that the City may already have a donation agreement template from previous sculpture ac- ceptance. BRAID shared that the wish book list should include EDA related items and be smaller in scope due to limited matching funds. Examples could include the downtown mural or items that provide a sense of place. OLSON stated that the Parks Master Plan will be completed in the spring and perhaps a Wish Book style docu- ment could be developed specifically for parks. BRIGGS recommends that in order to place an item in the wish book, it would require a minimum of three votes from the EDA. He would envision items that are related to visits to the community including the arts, monuments, etc. MCCABE stated that if a request for an addition to the wish book were to come in, staff would provide that information to the EDA along with a list of current projects. BRIGGS recommended the EDA agree to a percentage match for every item in the wish book. The example given was for the LCD kiosk item, perhaps the EDA would commit to 25% up front. Staff will bring forward a draft donation agreement and revised EDA focused list to the next meeting. B. Downtown Redevelopment (verbal) MCCABE provided an update on downtown redevelopment activities. BRIGGS stated that he has been contacted recently by residents with misinformation regarding downtown rede- velopment projects. MCCABE shared talking points related to a specific redevelopment project. MCCABE shared that staff will need to engage Northland Securities and Briggs and Morgan soon to facilitate a TIF financing process. MCCABE explained that the TIF district needs to be established prior to any work that is eligible for reimburse- ment. He shared that a conversation with any developer is necessary to discuss a pre-development agreement. OLSON suggested staff review the options associated with Livable Communities Grant. BRIGGS questioned when a concept plan/visual could be released to the public. Discussion followed. BRAID suggested a presentation be made by the developer to the EDA and Planning Commission with recom- mendations moving forward to the City Council. Discussion followed revising the talking points to include: • Clarification that we currently do not have a project. • How the concept meets the 2040 comprehensive plan. • VFW membership has voted to explore the possibility of rebuilding. • One parcel has been purchased by the developer; purchase of a 2nd parcel by the developer is pending. • EDA is focused on adding commercial/industrial tax base. • Prior Lake supports veterans in our community. C. 2020 EDA Budget MCCABE provided a copy of the 2020 budget. He shared that the 2020 EDA budget was approved at approxi- mately $453,000. EDA members commended the members of the council who represented the successes and plans for the EDA. 9. NEW BUSINESS A. None 10. OTHER BUSINESS A. Staff Updates i. Business Engagement Committee MCCABE shared that the BEC will continue to remain as a standalone committee. The committee meets this Thursday and will discuss meeting attendance, expectations, goals, etc. BRIGGS stated that he would like to be an EDA liaison to the BEC for 2020 as a sign of support and reaffirm the EDA’s connection with the BEC. Staff will post that a quorum of the EDA may attend the Thursday meeting. ii. Downtown Mural SCHWABE shared that $3,000 has been donated towards the downtown mural to date with lots of interested inquiries from the social media and website posts. BRIGGS suggested sharing the information with the PLHS Student Council. Staff will provide information to the BEC student liaison. iii. Mana Brewing MCCABE shared the proposed developer is not moving forward this project. As a result, monies allocated to this project will become available for other projects. iv. CH 21/CR 87 Intersection Study MCCABE provided an update on the two options associated with the intersection improvement study. City Staff supports Option 3 which is a full intersection as opposed to Option 2 which is a three-quarter offset intersection. Staff put together talking points to highlight areas related to the economic development benefits of the op- tions that were not included in the study as well as wellhead protection information for the county’s review and consideration. BRIGGS commented that including Stacy Crakes, Jo Foust, and Brad Davis was critical to show the eco- nomic impacts of business park development vs. general business development when in conversation with Scott County. MCCABE provided an overview of the potential tax impacts on existing and vacant properties in our com- munity. BRIGGS shared that there is a quarterly meeting with Scott County tomorrow at which this will be a topic. B. Commissioner Comments i. Committee Liaison, Activity & Initiatives Update  2020 Advisory Committee Appointments CHROMY proposed additional discussion and a possible timeline for the Technology Village space currently in City Hall. MCCABE shared that the EDA used a Scott County grant in 2016 to look at the feasibility of the Tech- nology Village program. First Stop Shop staff took over most Technology Village day to day operations from City Staff. Expansion studies have occurred and are occurring; however, no immediate future program plans are known at this time. OLSON shared that the space currently occupied by Technology Village may be needed by the City in the coming years. BRAID shared that the Technology Village program has evolved in a very positive direction over the last three years. MCCABE stated he does not believe it is the intention of the EDA to terminate the program, rather the EDA may want to request a plan to show how Scott County and FSS envisions this program continuing to evolve/move forward beyond Prior Lake and throughout Scott County. Example given was if the program was to be reformatted similar to SCALE where all communities contribute or perhaps each community has its own location.  Arts Committee/Task Force SHEEHAN-KERBER shared that the first Arts Task Force meeting was held on November 26th. She indicated that there are approximately 24 people who have been invited to participate although not all of them have attended or requested to be placed on the task force. She stated that four people, in addition to staff and EDA liaisons, attended the meeting. She stated that those individuals have already started on an existing arts inventory. She shared that she will be working on paring down the Task Force prior to their next meeting. 11. ADJOURNMENT MOTION BY CHROMY, SECONDED BY BRIGGS TO ADJOURN THE MEETING. Ayes by Chromy, Sheehan-Ker- ber, Boucher-Hoese, Briggs and Braid. The motion carried 5-0. The meeting adjourned at 5:55 p.m. Submitted by: Amanda Schwabe 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 13, 2020 AGENDA #: 4A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: DEVELOPMENT UPDATE DISCUSSION: Introduction The purpose of this agenda item is to review the year-end residential and com- mercial development update as of December 31, 2019. History EDA Commissioners requested an update of residential and commercial activity at each meeting. Conclusion The attached memorandum provides a summary of the 2020 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: January 8, 2020 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 December 31, 2019. $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019Total Building Permit Valuation Single Family Dwellings 144 $46,658,403.00 114 $40,189,354.00 Townhouses (# units)59 $10,458,364.00 84 $14,416,074.00 Multiple Units 0 $0.00 0 $0.00 New Commercial Industrial & Commercial 2 $1,620,000.00 5 $5,317,652.00 Residential 866 $5,241,979.00 873 $6,972,376.00 Industrial & Commercial 25 $12,718,829.00 31 $8,322,030.00 tMechanical 718 $1,598,741.00 682 $0.00 ttMechanical (SF & TH)812 $0.00 792 $0.00 TOTALS 2626 $78,296,316.00 2581 $75,217,486.00 t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees. 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 Additions and Alterations Number of Permits Declared Value 26.32% -29.76% -60.00% -0.80% -19.35% Number of Permits Declared Value 1.74% 2019 Year to Date 2018 Year to Date New Residential 5.28% 2.53% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease 16.10% -27.45% 4.09% -69.54% -24.82% 52.83% 0 100 200 300 400 500 600 700 800 900 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019UNITSYEAR Prior Lake Residential Construction Single-Family Detached Single-Family Attached Multiple-Family 0 100 200 300 400 500 600 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019SF PermitsYear Prior Lake Single Family Construction Single-Family Detached Single-Family Attached $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019Prior Lake Total Residential Building Permit Valuation New Residential Residential Addition/Alteration 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 13, 2020 AGENDA #: 4B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: EDA REVENUE & EXPENDITURE REPORT DISCUSSION: Introduction The purpose of this consent agenda item is to review the 2019 year-end EDA Rev- enue & Expenditure Report. History EDA Commissioners requested financial reports are provided on a quarterly basis. Current Circumstances Total EDA expenditures, including Technology Village, were 87.28% of budget ($171,284) and revenues were 115.54% of budget ($186,154). The EDA has expended 87.14% of their 2019 annual budget; EDA revenues were 114.83% of budget. 2019 EDA expenditures primarily relate to staff wages and benefits as anticipated and budgeted and promotional efforts related to the #PLWorthIt program. Technology Village expenditures were 93.69% of budget; Technology Village facility rental revenues were 129.41% of budget. 2019 Technology Village expenditures primarily relate to property taxes and a business assistance contract with Neon Liz- ard Creative for marketing and promotional assistance for the Technology Village program, events and participants, as well as the Fast-Track Business Challenge. Conclusion EDA members receive quarterly financial reports of revenues and expenditures. ISSUES: There may be additional year-end adjustments for the period ending December 31, 2019. All unspent funds will be placed in the EDA reserve fund. ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA Revenue & Expenditure Report. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative No. 1 ATTACHMENTS: 1. EDA Revenue & Expenditure Report REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 1/2Page : 01/08/2020 10:53 AM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2019 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2019 YTD BALANCE 12/31/2019 2019 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Revenues Dept 00000.00 - GENERAL 99.24 1,138.44 71,146.50 148,861.56 150,000.00 Current Property Taxes - General Purpos240-00000.00-31010.00 0.00 0.00 0.00 0.00 0.00 Market Value Credit Aid240-00000.00-33423.00 0.00 0.00 0.00 0.00 0.00 Administrative Charges240-00000.00-34111.00 301.67 (6,655.00)0.00 9,955.00 3,300.00 Interest Earnings240-00000.00-36210.00 100.00 (8,617.35)0.00 8,617.35 0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00 100.00 (8,600.00)6,100.00 8,600.00 0.00 Contributions & Donations240-00000.00-36230.00 0.00 0.00 0.00 0.00 0.00 Transfer from Other Funds240-00000.00-39203.00 114.83 (22,733.91)77,246.50 176,033.91 153,300.00 Total Dept 00000.00 - GENERAL Dept 46500.00 - ECONOMIC DEVELOPMENT 0.00 0.00 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14 0.00 0.00 0.00 0.00 0.00 Prof Service Fee Deposit - EDA240-46500.00-36220.14 0.00 0.00 0.00 0.00 0.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT Dept 46503.00 - TECH VILLAGE INCUBATOR 129.41 (2,300.04)930.42 10,120.04 7,820.00 Facility Rental - EDA240-46503.00-34760.02 129.41 (2,300.04)930.42 10,120.04 7,820.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 115.54 (25,033.95)78,176.92 186,153.95 161,120.00 TOTAL REVENUES Expenditures Dept 46500.00 - ECONOMIC DEVELOPMENT 103.46 (3,276.50)7,664.39 97,863.50 94,587.00 Wages - Full Time240-46500.00-51100.01 83.33 500.00 200.00 2,500.00 3,000.00 Wages - Commissioners240-46500.00-51100.05 100.00 (1,187.27)0.00 1,187.27 0.00 Overtime - Full Time240-46500.00-51110.01 0.00 0.00 0.00 0.00 0.00 Sick Leave - Buy Down240-46500.00-51208.01 0.00 0.00 0.00 0.00 0.00 Accrued Comp Time240-46500.00-51301.00 94.11 30.62 38.33 489.38 520.00 Compensated Absences240-46500.00-51400.00 103.24 (195.93)483.45 6,245.93 6,050.00 Social Security Contributions240-46500.00-51450.00 103.24 (45.83)113.09 1,460.83 1,415.00 Medicare Contributions240-46500.00-51451.00 103.84 (274.91)574.83 7,428.91 7,154.00 PERA Contributions240-46500.00-51460.00 99.27 54.76 624.52 7,494.24 7,549.00 Health Insurance240-46500.00-51470.00 100.00 0.00 20.00 240.00 240.00 Retiree HCSP Contributions240-46500.00-51472.00 50.00 270.00 22.50 270.00 540.00 Dental Insurance240-46500.00-51473.00 100.94 (0.64)5.72 68.64 68.00 Life Insurance240-46500.00-51474.00 122.64 (111.84)0.00 605.84 494.00 Workers Compensation Insurance240-46500.00-51477.00 0.00 0.00 0.00 0.00 0.00 Office Supplies240-46500.00-52010.00 24.75 1,881.25 0.00 618.75 2,500.00 Legal Services240-46500.00-53020.00 61.32 25,694.41 448.99 40,725.59 66,420.00 Professional Services - General240-46500.00-53100.80 0.00 100.00 0.00 0.00 100.00 Telecommunications240-46500.00-53210.00 0.00 0.00 0.00 0.00 0.00 Training and Employee Development240-46500.00-53310.10 0.00 0.00 0.00 0.00 0.00 Required Notice Publication240-46500.00-53510.00 0.00 500.00 0.00 0.00 500.00 Memberships and Subscriptions240-46500.00-54310.00 1.33 740.04 0.00 9.96 750.00 Miscellaneous Expense240-46500.00-54320.00 0.00 0.00 0.00 0.00 0.00 Projects - Professional Services240-46500.00-55050.00 87.14 24,678.16 10,195.82 167,208.84 191,887.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page : 01/08/2020 10:53 AM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2019 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2019 YTD BALANCE 12/31/2019 2019 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Expenditures Dept 46503.00 - TECH VILLAGE INCUBATOR 19.83 80.17 0.00 19.83 100.00 Office Supplies240-46503.00-52010.00 0.00 1,000.00 0.00 0.00 1,000.00 Small Equipment - General240-46503.00-52400.10 399.20 (748.00)0.00 998.00 250.00 Legal Services240-46503.00-53020.00 0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60 87.10 96.72 0.00 653.28 750.00 Telecommunications240-46503.00-53210.00 0.00 0.00 0.00 0.00 0.00 Rent Subsidies240-46503.00-54095.00 230.00 (1,300.00)2,300.00 2,300.00 1,000.00 Business Assistance240-46503.00-54100.00 0.00 750.00 0.00 0.00 750.00 Memberships and Subscriptions240-46503.00-54310.00 20.89 395.56 34.32 104.44 500.00 Miscellaneous Expense240-46503.00-54320.00 0.00 0.00 0.00 0.00 0.00 Building & Building Improvements240-46503.00-55520.00 0.00 0.00 0.00 0.00 0.00 Furniture and Office Equipment240-46503.00-55560.00 0.00 0.00 0.00 0.00 0.00 Machinery and Equipment240-46503.00-55570.00 93.69 274.45 2,334.32 4,075.55 4,350.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 87.28 24,952.61 12,530.14 171,284.39 196,237.00 TOTAL EXPENDITURES 42.34 (49,986.56)65,646.78 14,869.56 (35,117.00)NET OF REVENUES & EXPENDITURES 87.28 24,952.61 12,530.14 171,284.39 196,237.00 TOTAL EXPENDITURES 115.54 (25,033.95)78,176.92 186,153.95 161,120.00 TOTAL REVENUES Fund 240 - EDA SPECIAL REVENUE FUND: 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 13, 2020 AGENDA #: 4C PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: BEC / TECHNOLOGY VILLAGE BOD BYLAW AMENDMENTS DISCUSSION: Introduction The purpose of this agenda item is for EDA review and approval of updates to the Business Engagement Committee (BEC) and Technology Village Board of Direc- tor Bylaws. History The EDA periodically reviews recommend revisions to the BEC and Technology Village Board of Director Bylaws; the last revision being approved in April 2018. Current Circumstances The City Attorney reviewed and recommended revisions to multiple committee by- laws; including the BEC and Technology Village Board of Directors. The revisions include the removal of the screening committee for new appoint- ments and reducing the number of committee members from a maximum of 13 to a maximum of ten; the BEC currently has ten members. There were also a few clean up revisions which fixed typos (Board vs Committee); delete duplicate lan- guage (officers, appointment timeline, amendments); and, in Technology Village Bylaws and deleted duplicate “vacancies”. The appointment of staff liaison from the mayor to the City Manager was changed, as the city has done in the other bylaws. The appointment language was also cleaned up. Issues The primary purpose of the revisions to the BEC and Technology Village BOD Bylaws are to simplify the documents by removing unnecessary language and to make the document more user friendly for city and public use. FINANCIAL IMPACT: None. ALTERNATIVES: RECOMMENDED ALTERNATIVE: 1. Motion and second, as part of the consent agenda, to approve the proposed revisions to the Business Engagement Committee and Technology Village Board of Director Bylaws. 2. Remove this item from the consent agenda for additional discussion. Alternative No. 1. ATTACHMENTS: 1. BEC Bylaws (Redlined) 2. Technology Village BOD Bylaws (Redlined) CITY OF PRIOR LAKE BUSINESS ENGAGEMENT COMMITTEE BYLAWS Adopted July 11, 2011 Amended April 9, 2012 Amended August 19, 2013 Amended January 20, 2015 Amended January 11, 2016 Amended February 08, 2016 Amended April 09, 2018 January 13, 2020 SECTION 100: PURPOSE 101. The purpose of the City of Prior Lake Business Engagement Committee (the “Committee” or BEC) bylaws is to provide a set of operating procedures for the Committee, and to establish a code of ethics and conduct. 102: The Bylaws shall be reviewed annually by the Committee, and any changes or amendments agreed to by a majority vote of the Committee shall be recommended to the Economic Development Authority (EDA) for adoption at its annual meeting. SECTION 200: STRUCTURE OF COMMITTEE 201. COMMITTEE CREATED: The EDACity Council has established an Business Engagement Committee. The Committee is advisoryadvisory, and its purpose is to study and provide reports, analysis and recommendations to the Economic Development Authority (EDA) and City staff on economic development matters as assigned. Members to the Business Engagement Committee shall be appointed by the Economic Development Authority. Members shall serve three (3) year-terms beginning November 1st and ending October 31st. The members of the Committee shall annually elect officers in accordance with the procedures of paragraph 206 herein. 202. DUTIES OF THE COMMITTEE: The duties and responsibilities of the Committee include: 1. Serve as a liaison between Ccity government and the business community through interaction with business leaders and community residentsto assist the City with business retention in the community.. 2. As requested, review and comment on economic development and redevelopment policies to the EDAEconomic Development Authority or City staff. 3. Make recommendations to the EDAEconomic Development Authority or City staff regarding economic development issues, strategy development and implementation and other initiatives that can be undertaken by the EDAEconomic Development Authority to expand and strengthen business retention & expansion. 4. In conjunction with EDAEconomic Development Authority members or staff, introduce potential or new business representatives to others in the community. 203. APPOINTMENT: The Committee shall consist of no more than tenthirteen (130) members appointed by the EDAEconomic Development Authority. Said members shall consist of residents and non-residents affiliated with a business located within the City of Prior Lake as 2 of 4 may be determined by the EDA.Economic Development Authority. Only residents of the City who are at least 18 years old shall be considered for appointment. No more than 40% of the Committee shall be non-residents. Said members shall serve three (3) year-terms beginning November 1st and ending October 31st. The Committee shall be representative of the citizens who live in Prior Lake. Committee members may serve additional terms upon approval by the EDAPrior Lake City Council, based upon satisfactory attendance and participation, continued qualification residence within the corporate limits of the City of Prior Lake, and in accordance with the term limit policy established herein. Committee members may be appointed at any time throughout the year. If a Committee member is appointed at any time other than the standard City appointment process in October, the Committee member shall begin service immediately upon appointment and shall serve as if appointed in the previous October, serving two full years and a partial year. 204: COMMITTEE LIAISONS: The EDAEconomic Development Authority, the Prior Lake Chamber of Commerce and other organizations deemed appropriate by the EDA and CommitteeBEC, may appoint Liaisons to serve on the Committee. The role of a Liaison is to act as a conduit and resource for information for the Committee. The Liaison shall not participate in the discussion or deliberation of any matter pending before the Committee, except where the Committee is meeting in a study or work session. The Committee, at its discretion, may ask the Liaison for input on the subject under consideration. The Liaison shall never use this occasion as an opportunity to communicate their personal position regarding the matter under consideration. 205. VACANCIES: If an appointed member of the Committee resigns, is terminated, reaches a term limit, or otherwise vacates a seat of the Committee, the EDAEconomic Development Authority may appoint a replacement in the following manner: 1. Applications are solicited. A notice of the vacancy is made public and individuals may be encouraged to consider the position. The notice shall state the deadline for submitting applications. 2. Screening Committee. The City Manager or his designee, the EDA liaison to the Committee, the staff liaison to the Committee, and one member of the Committee appointed by majority vote of the Committee shall serve as the Screening Committee. An individual subject to re-appointment may not sit on the screening committee. 3.2. Appointment. City staff shall review applications and conduct interviews, if necessary, of The Screening Committee shall interview all candidates who have applied for appointment or reappointment. Staff will then and make a recommendation to the EDA for appointment. The recommendation of the Screening Committee will be presented to the EDA. The EDA may accept or reject the recommendation. If the recommendation is rejected, the EDA may appoint another individual or reopen the application period and invite new candidates to apply. 206. OFFICERS: The Committee shall elect from among its members a Chair and Vice-Chair. The City Manager or his/her designee shall serve as Secretary of the Committee. 1. Chair: The Chair shall be elected at the first meeting in November by majority vote of the Board members present at the meeting. The term of the chair shall begin in November and run for one year. The duties of the chair shall include approval of meeting agendas, presiding at meetings, and giving an accounting of its activities and any information the CommitteeBoard may consider relevant before the EDA annually or as directed otherwise. 2. Vice-Chair: The Vice-Chair shall be appointed in the same manner as the Chair and shall perform the duties of the Chair in his/her absence. The Vice-Chair shall assume such other duties as assigned by the Chair. 3 of 4 3. Secretary: The Secretary shall be responsible for recording and compiling a written summary of all official activities of the Committee. 4. Vacancy: If the office of Chair or Vice-Chair becomes vacant, the Committee shall appoint a replacement by majority vote of those members present at the next regular meeting, and such election shall be for the unexpired term of said office. 207. TERM LIMIT: It is the policy of the Prior Lake City Council to impose a three-term service limitation for all appointed positions on the Committee. The term limit applies only to full three- year terms, but under no circumstance can and member serve for more than 9 (nine) consecutive years. The purpose of the term limit policy is to encourage resident participation on City advisory bodies and provide community members with the opportunity to participate in their local government. 208: REMOVAL OF MEMBER: Any member of the BECCommittee may be removed from office by a four-fifths (4/5) vote of the entire EDA for reasons including but not limited to: (i) failure to attend a minimum of 75% of meetings; (ii) failure to attend site visits/inspections; (iii) failure to review and understand agenda materials; (iv) failure to participate in an appropriate and productive manner; (v) failure to continue to meet any requirement set forth in Section 203; and (vi) failure to comply with any provision of these bylaws or any federal, state or local rule or regulation. 209: STAFF LIAISON: The City ManagerMayor shall appoint one or more staff liaisons to serve on the Committee. The staff liaison shall schedule meetings and provide information at the direction of the Committee. The staff liaison may provide information on the staffs’ position at the request of the Committee but shall not direct the Committee or advocate for a position. 210: STUDENT MEMBERS: The Committee may select up to two individuals who are 18 years or under to be student members on the Committee. The Committee shall establish an application and interview process to select the student members. The student members shall be full voting members of the Committee. SECTION 300: STATEMENT OF ETHICS 301: The Statement of Ethics is located in the EDA Bylaws Section 16. SECTION 400: CONDUCTING MEETINGS 401: MEETINGS: All regular and special meetings shall be open to the public and shall be noticed in conformance with the Minnesota Open Meeting Law. 402: SPECIAL MEETINGS: Special Meetings of the Committee may be called by the Chair or any two (2) members of the Committee for the purpose of transacting any business designated in the notice. Staff may recommend calling a special meeting but must receive approval from either the chair or two members of the Committee. At such meetings, no business shall be considered other than as designated in the notice. 403: QUORUM AND VOTING: At each meeting a majority of all the members appointed (e.g. three out of five, four out of sixsix out of ten) shall constitute a quorum for the transaction of business. The voting options available to the Committee when a vote has been initiated are: aye (affirmative); nay (negative vote); and a qualified abstention. When a vote is to be taken, the presiding officer shall first call for the ayes, then the nays, and if applicable, shall call for abstentions. The votes of each member shall be recorded in the minutes. If a member of the 4 of 4 Committee is absent during a vote, the member’s vote for the official minutes shall read as “absent”. SECTION 500: MOTIONS AND RESOLUTIONS 501: POWERS AND DUTIES: The Committee shall act in an advisory capacity to the Prior Lake EDA and shall advise the EDA on matters identified in Section 202100 or as assigned to the Committee. The Committee Chair shall give an accounting of the Committee’s activities with respect to its goals and objectives before the EDA as reqeustedrequested. Additionally, specific powers, duties and responsibilities may be assigned to the Committee upon approval of the EDA. 502: SUBCOMMITTEES: The Committee may divide its membership into subcommittees, as it deems necessary to implement its goals and objectives. SECTION 600: AMENDMENTS 601: AMENDMENTS: These bylaws shall be reviewed by the Committee annually. The Committee or City staff may recommend revised Bylaws to the EDA for final approval. CITY OF PRIOR LAKE TECHNOLOGY VILLAGE BYLAWS Amended October 29, 2012 Amended January 20, 2015 Amended January 11, 2016 Amended February 08, 2016 Amended April 09, 2018 Amended January 13, 2020 SECTION 100: PURPOSE 101. The purpose of the City of Prior Lake Technology Village Board (the “BoardCommittee”) bBylaws is to provide a set of operating procedures for the Technology Village Board of Directors, and to establish a code of ethics and conduct. 102: The Bylaws shall be reviewed annually by the Committee, and any changes or amendments agreed to by a majority vote of the Committee shall be recommended to the Economic Development Authority (EDA) for adoption at its annual meeting. SECTION 200: STRUCTURE OF COMMITTEEBOARD 201. COMMITTEEBOARD CREATED: The EDA has established a Technology Village Board. The Board shall act in an advisory capacity to the Economic Development Authority (“EDA”) and shall advise on matters related to Technology Village as identified herein, or as assigned to the Board by the EDA. The BoardCommittee is advisory and its purpose is to study and provide reports, analysis and recommendations to the EDAEconomic Development Authority and City staff on matters as assigned. Members to the Committee shall be appointed by the Economic Development Authority. Members shall serve three (3) year-terms beginning November 1st and ending October 31st. The members of the Committee shall annually elect officers in accordance with the procedures of paragraph 206 herein. 202. DUTIES OF THE BOARD: The duties and responsibilities of the Board include: 1. Plan and formulate policy to guide the programming and direction of the Technology Village program; 2. Assist in the hiring of the Executive Director position for Technology Village; 3. Assist in screening prospective incubator clients; and 4. Ensure the overall financial viability of the program.; 5. Serve as a liaison between Ccity government and the community; and 6. In conjunction with EDA members or City staff, introduce potential or new business representatives to others in the commercial community. Board members should have the ability to provide network connections that will assist the program’s Executive Director in creating links to investment and professional resources that support the success of Technology Village clients. The Board will be instrumental in promoting Technology Village in the community and generating awareness and understanding of the Technology Village program. 2 of 4 203. APPOINTMENT: The Board shall consist of a minimum of five (5) and a maximum of nine (9) members as determined and appointed by the EDA. Only residents of the City who are at least 18 years old shall be considered for appointment. Said members shall serve three (3) year- terms beginning November 1st and ending October 31st. The Board shall consist of a minimum of one (1) member of the EDA and a number of residents, business owners, or other interested parties. Non-Prior Lake residents who are affiliated with a business located within the City of Prior Lake or are affiliated with an organization which provides assistance to Technology Village clients may be appointed; no more than 25% of Board members shall be non-Prior Lake residents. Said members shall serve three (3) year-terms beginning November 1st and ending October 31st. Board members may serve additional terms upon approval by the EDA, based upon satisfactory attendance and participation, continued qualification, and in accordance with the term limit policy established herein. Board members may be appointed at any time throughout the year. If a Board member is appointed at any time other than the standard City appointment process in October, the Board member shall begin service immediately upon appointment and shall serve as if appointed in the previous October, serving two full years and a partial year. In addition to the appointed members, the City Manager or designee, the City Finance director or designee, and the Executive Director shall be ex-officio members of the Board and shall have the right to participate in all discussions but not the right to vote. 204. VACANCIES: If an appointed member of the Board resigns, is terminated, reaches a term limit, or otherwise vacates a seat of the Board, the EDA shall appoint a replacement in the following manner: 1. Applications are solicited. A notice of the vacancy is made public and individuals may be encouraged to consider the position. The notice shall state the deadline for submitting applications. 2. Screening Committee. The City Manager or his designee, the EDA liaison to the Board, the staff liaison to the Board, and one member of the Board appointed by majority vote of the Board shall serve as the Screening Committee. An individual subject to re- appointment may not sit on the screening committee. 3.2. Appointment. City staff shall review applications and conduct interviews, if necessary, of The Screening Committee shall interview all candidates who have applied for appointment or reappointment. Staff will then and make a recommendation to the EDA for appointment. The recommendation of the Screening Committee will be presented to the EDA. The EDA may accept or reject the recommendation. If the recommendation is rejected, the EDA may appoint another individual or reopen the application period and invite new candidates to apply. 205. VACANCIES: If an appointed member of the Committee resigns, is terminated, reaches a term limit, or otherwise vacates a seat of the Committee, the Economic Development Authority may appoint a replacement in the following manner: 1. Applications are solicited. A notice of the vacancy is made public and individuals may be encouraged to consider the position. The notice shall state the deadline for submitting applications. 2. Screening Committee. The City Manager or his designee, the EDA liaison to the Committee, the staff liaison to the Committee, and one member of the Committee appointed by majority vote of the Committee shall serve as the Screening Committee. An individual subject to re-appointment may not sit on the screening committee. 3. Appointment. The Screening Committee shall interview all candidates who have applied for appointment or reappointment and make a recommendation to the EDA. The recommendation of the Screening Committee will be presented to the EDA. The EDA may accept or reject the recommendation. If the recommendation is rejected, the EDA 3 of 4 may appoint another individual or reopen the application period and invite new candidates to apply. 206. OFFICERS: The BoardCommittee shall elect from among its members a Chair and Vice-Chair. The City Manager or his/her designee shall serve as Secretary of the CommitteeBoard. 1. Chair: The Chair shall be elected at the first meeting in November by majority vote of the Board members present at the meeting. The term of the chair shall begin in November and run for one year. The duties of the chair shall include approval of meeting agendas, presiding at meetings, and giving an accounting of its activities and any information the Board may consider relevant before the EDA annually or as directed otherwise. 2. Vice-Chair: The Vice-Chair shall be appointed in the same manner as the Chair and shall perform the duties of the Chair in his/her absence. The Vice-Chair shall assume such other duties as assigned by the Chair. 3. Secretary: The Secretary shall be responsible for recording and compiling a written summary of all official activities of the CommitteeBoard. 4. Vacancy: If the office of Chair or Vice-Chair becomes vacant, the CommitteeBoard shall appoint a replacement by majority vote of those members present at the next regular meeting, and such election shall be for the unexpired term of said office. 207. TERM LIMIT: It is the policy of the Prior Lake City Council to impose a three-term service limitation for all appointed positions on the CommitteeBoard. The term limit applies only to full three-year terms. The purpose of the term limit policy is to encourage resident participation on City advisory bodies and provide community members with the opportunity to participate in their local government. 208: REMOVAL OF MEMBER: Any member of the CommitteeBoard may be removed from office by a four-fifths (4/5) vote of the entire EDA for reasons including but not limited to: (i) failure to attend a minimum of 75% of meetings; (ii) failure to attend site visits/inspections; (iii) failure to review and understand agenda materials; (iv) failure to participate in an appropriate and productive manner; (v) failure to continue to meet any requirement set forth in Section 203; and (vi) failure to comply with any provision of these bylaws or any federal, state or local rule or regulation. 209: STAFF LIAISON: The City ManagerMayor shall appoint one or more staff liaisons to serve on the CommitteeBoard. The staff liaison shall schedule meetings and provide information at the direction of the CommitteeBoard. The staff liaison may provide information on the staffs’ position at the request of the CommitteeBoard but shall not direct the CommitteeBoard or advocate for a position. 210: STUDENT MEMBERS: The CommitteeBoard may select up to two individuals who are 18 years or under to be student members on the CommitteeBoard. The CommitteeBoard shall establish an application and interview process to select the student members. The student members shall be full voting members of the CommitteeBoard. SECTION 300: STATEMENT OF ETHICS 301: POLICY STATEMENT: The Statement of Ethics is located in the EDA Bylaws Section 16. 4 of 4 SECTION 400: CONDUCTING MEETINGS 401: MEETINGS: All regular and special meetings shall be open to the public and shall be noticed in conformance with the Minnesota Open Meeting Law. 402: SPECIAL MEETINGS: Special Meetings of the CommitteeBoard may be called by the Chair or any two (2) members of the CommitteeBoard for the purpose of transacting any business designated in the notice. Staff may recommend calling a special meeting but must receive approval from either the chair or two members of the CommitteeBoard. At such meetings, no business shall be considered other than as designated in the notice. 403: QUORUM AND VOTING: At each meeting a majority of all the members appointed (e.g. three out of five, four out of six) shall constitute a quorum for the transaction of business. The voting options available to the CommitteeBoard when a vote has been initiated are: aye (affirmative); nay (negative vote); and a qualified abstention. When a vote is to be taken, the presiding officer shall first call for the ayes, then the nays, and if applicable, shall call for abstentions. The votes of each member shall be recorded in the minutes. If a member of the CommitteeBoard is absent during a vote, the member’s vote for the official minutes shall read as “absent”. SECTION 500: MOTIONS AND RESOLUTIONS 501: POWERS AND DUTIES: The CommitteeBoard shall act in an advisory capacity to the Prior Lake EDA and shall advise the EDA on matters identified in Section 202100 or as assigned to the CommitteeBoard. The CommitteeBoard Chair shall give an accounting of the CommitteeBoard’s activities with respect to its goals and objectives before the EDA as requested. Additionally, specific powers, duties and responsibilities may be assigned to the CommitteeBoard upon approval of the EDA. 502: SUBCOMMITTEES: The CommitteeBoard may divide its membership into subcommittee, as it deems necessary to implement its goals and objectives. SECTION 600: AMENDMENTS 601: AMENDMENTS: These bylaws shall be reviewed by the CommitteeBoard annually. The CommitteeBoard or City staff may recommend revised Bylaws to the EDA for final approval. 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: January 13, 2020 AGENDA #: 8A PREPARED BY: Amanda Schwabe, Planner AGENDA ITEM: #PLWorthIt Wish Book DISCUSSION: Introduction The purpose of this agenda report is to review the revised EDA focused wish list and an example donation agreement. History At previous EDA meetings, members discussed the 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. The Wish Book would identify projects and amenities that are desired by the community but are not likely to be funded without private sponsorship. At the October 14th meeting, the EDA directed staff to refine the listed items from approximately 60 to 25 and approved the expenditure of up to $2,000 for marketing assistance to develop a preliminary electronic document which would be used to solicit public input before the final version is created and promoted. At the November 12th meeting, the EDA further reduced the list to five priority items (café/restaurant at Sand Point, CSAH 21 streetscaping improvements, downtown LCD kiosk, mural, and splash pad). Discussion followed related to necessary approvals of listed items and direction was given to staff to conduct additional research regarding how the City of Mankato handles contributions, as well as possible matching grant opportunities. In December, Staff reported back on findings from conversations with the City of Mankato and their Wish Book experience. The EDA provided clarification on EDA focused projects and directed Staff to return with a final, revised EDA focused list and donation agreement language. Current Circumstances Staff has refined the list of Wish Book which focuses on items that support EDA initiatives. Conclusion Staff is requesting approval of the revised EDA focused Wish Book list and example donation agreement. ISSUES: Consideration should be given to how contributions will be accepted, minimum amount required, matching fund availability. FINANCIAL IMPACT: Staff was able to develop a flyer advertising the wish book in-house with the assistance of Ann Schroeder, therefore the previously approved marketing assistance of $2,000 has not been expended. ALTERNATIVES: 1. Motion and second approving the revised EDA focused wish list and approval to move forward with development of the donation agreement. 2. Continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENT: Alternative No. 1 1. DRAFT Wish Book (To Be Distributed at Meeting) 2. Donation Agreement Example 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 13, 2020 AGENDA #: 9A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: ELECTION OF OFFICERS DISCUSSION: Introduction Article 5.1 of the EDA Bylaws state that the officers of the EDA shall be elected at the first meeting of the year. Officers include President, Vice-President, Treasurer, Secretary, and Assistant Treasurer. The EDA’s first meeting of the year is on January 13, 2020. History The 2019 elected EDA officers are: Dave Chromy as President; Marie Boucher- Hoese as Vice-President; Cathy Erickson as Treasurer; Jason Wedel as Secre- tary; and Casey McCabe as Assistant Treasurer. Current Circumstances All EDA Commissioners are eligible to become officers for 2020 and the officers elected in 2019 are eligible for reappointment. The EDA Bylaws provide that the city’s Finance Director be designated as the Treasurer, and the bylaws further allow non-commissioners to hold the officer po- sitions of Secretary and Assistant Treasurer. In previous years, the City Manager / EDA Executive Director has been elected Secretary and the Community Devel- opment Director has been elected Assistant Treasurer. Conclusion The 2020 EDA officers of President, Vice-President, Treasurer, Secretary and As- sistant Treasurer should be elected by the EDA Commissioners on January 13th. FINANCIAL IMPACT: None ALTERNATIVES: 1. Motion(s) and second(s) to elect EDA officers for 2020. 2. Table the election. RECOMMENDED MOTION: Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 13, 2020 AGENDA #: 9B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: ADVISORY COMMITTEE APPOINTMENTS DISCUSSION: Introduction The purpose of this agenda item is to: 1) appoint an EDA member to serve on the Technology Village Board of Directors for 2020; and 2) appoint an EDA liaison(s) the Business Engagement Committee (BEC) for 2020. History In 2019, the EDA appointments were Dave Chromy to the Technology Village Board of Directors and Annie Sheehan-Kerber and Marie Boucher-Hoese as the EDA liaisons to the BEC. Current Circumstances The duties and responsibilities of the Technology Village Board of Directors in- clude:  Plan and formulate policy to guide the programming and direction of the Tech- nology Village program.  Assist in screening prospective incubator clients.  Ensure the overall financial viability of the program.  Serve as a liaison between city government and the community.  In conjunction with EDA members or city staff, introduce potential or new busi- ness representatives to others in the commercial community. The duties and responsibilities of the BEC include:  Serve as a liaison between city government and the community through inter- action with business leaders and community residents.  As requested, review and comment on economic development and redevel- opment policies to the EDA or city staff.  Make recommendations to the EDA or city staff regarding economic develop- ment issues, strategy development and implementation and other initiatives that can be undertaken by the EDA to expand and strengthen business reten- tion & expansion.  In conjunction with the EDA members or staff, introduce potential or new busi- ness representatives to others in the community. Conclusion All EDA Commissioners are eligible for appointment to the Technology Village Board of Directors and the BEC. These EDA subcommittee positions are ap- pointed annually. 2 EDA appointees should be available to attend the subcommittee meetings on a regular basis. The Technology Village Board of Directors meets on the third Friday of each month at 7:30 AM. The BEC meets the fourth Thursday of each month at 7:30 AM. FINANCIAL IMPACT: None ALTERNATIVES: 1. Motion and second to appoint a member of the EDA to serve on the Technol- ogy Village Board of Directors and a member, or members, of the EDA to serve as the EDA liaison to the Business Engagement Committee for 2020. 2. Table the appointments. RECOMMENDED MOTION: Alternative No. 1 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: JANUARY 13, 2020 AGENDA #: 9C PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR PRESENTED BY: CASEY MCCABE AGENDA ITEM: CONSIDER APPROVAL OF A PURCHASE AGREEMENT FOR PROPERTY AT 4662 DAKOTA STREET SE DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution approving the purchase of property at 4662 Dakota Street SE and authorizing the EDA President and Executive Director to execute the purchase agreement. Current Circumstances The owners of the property next to City Hall have approached staff to see if the City of Prior Lake would be interested in purchasing their property at 4662 Dakota Street SE. There are two single-family homes located between City Hall and the Rotary Gateway Park; the City of Prior Lake purchased the other single-family home at 4664 Dakota Street in 2014. The property at 4662 Dakota Street is approximately 70’ X 200’ (14,000 SF) and is occupied by a 1¼ story single family home and two-car detached garage. The 3- bed, 1.75-bath home was built in 1946 and has approximately 1,335 SF of finished space and includes a mostly unfinished basement. The Scott County 2020 estimated market value is $228,700; the sellers were initially seeking a purchase price of $295,000, which was reduced to $289,500 for city council consideration on Monday, January 6th. The council directed staff to submit a counteroffer of $275,000 and identify funding sources for the purchase, other than debt issuance or use of general fund reserves. One potential funding option would be for the EDA to purchase the property. ISSUES: City staff toured the property and feel the home could potentially be rented; however, if redevelopment of this site is anticipated, it may make sense to remove the home for that purpose at this point. City staff anticipates a need for additional funds to replace appliances, HVAC systems or other repairs either prior to or upon rental of the home. In addition, the seller’s property disclosure statement indicates an older roof and water getting into the basement during heavy rains. The city does rent the home next to this property and that experience has shown revenues are limited due to an average of $3,750 annually spent on property taxes, maintenance and repairs. FINANCIAL IMPACT: The property owners submitted a revised purchase agreement requesting a sale price of $275,000 and a closing date of January 31, 2020. In addition to the acquisition cost, the city/EDA would be responsible for property taxes for the remainder of 2020 and 2021 estimated at $5,750; closing costs and title work estimated at $5,000; and potential repairs if the home is to be rented or demolition costs if the home is to be removed. The preliminary year-end EDA reserve fund balance is approximately $565,000. Of this amount, the EDA has obligated approximately $375,000 to guarantee the purchase of the 16298 Main Avenue property and should maintain an additional ± $150,000 for EDA operations. The 2020 EDA budget includes $311,492 in Professional Services which could be used to fund all or a portion of this property purchase. This property acquisition would limit the EDA’s ability to assist other development projects in 2020 until such a time as the city and/or EDA enters into a downtown redevelopment agreement with the Beard Group, which would free up the EDA’s obligation for the Main Avenue property. If the EDA were to acquire the Dakota Street property, any future sale proceeds could be used to reimburse the EDA fund. ALTERNATIVES: 1. Motion and second to approve a resolution approving the purchase of property at 4662 Dakota Street SE and authorizing the President and Executive Director to execute the purchase agreement. 2. Motion and second to approve a resolution authorizing funding for a portion of the purchase of property at 4662 Dakota Street SE. 3. Motion and second to deny a resolution approving the purchase of property at 4662 Dakota Street SE. 4. Provide direction to staff. RECOMMENDED MOTION: ATTACHMENT: Alternative No. 1 1. Real Estate Purchase Agreement 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 20-01 EDA RESOLUTION APPROVING THE PURCHASE OF PROPERTY AT 4662 DAKOTA STREET SE AND AUTHORIZING THE EDA PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE THE PURCHASE AGREEMENT Motion By: Second By: WHEREAS, WHEREAS, WHEREAS, WHEREAS, The owners of the property at 4662 Dakota Street SE; PID 250010570 (“Property”) have approached city staff to see if the City of Prior Lake (“City”) would be interested in purchasing the Property; and The property owners have submitted a Real Estate Purchase Agreement (“Agreement”) and are requesting a sale price of $275,000 and a closing date of January 31, 2020; and Redevelopment in downtown Prior Lake is supported in various policy and planning documents of the City, including the 2040 Vision and Strategic Plan and the Comprehensive Plan; and The Prior Lake Economic Development Authority finds acquisition of the Property will facilitate future redevelopment in downtown Prior Lake. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY as follows: 1. The recitals set forth above are incorporated herein. 2. Funding necessary for the property acquisition, together with all Buyer related costs identified in the Agreement, will come from the EDA Professional Services - General Fund (240- 46500.00-53100.80). 3. The EDA President and Executive Director are authorized to execute the Agreement and any documents necessary to close the transaction. PASSED AND ADOPTED THIS 13th DAY OF JANUARY 2020. VOTE Chromy Braid Sheehan- Kerber Briggs Boucher- Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, 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: JANUARY 13, 2020 AGENDA #: 9D PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A PURCHASE AGREEMENT FOR PROPERTY AT 4656 PLEASANT STREET SE DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution authorizing the EDA President and Executive Director to enter into a Real Estate Purchase Agreement with The Beard Group, Inc. (“Beard”). Current Circumstances The EDA has been working with Beard, a real estate development company specializing in redevelopment and mixed-use projects, for the past several months on a potential downtown redevelopment project on the VFW block of Main Avenue SE. Beard has entered into a purchase agreement with a property owner to acquire a single-family residential property at 4656 Pleasant Street SE (“Property”) to facilitate this redevelopment project. Beard has requested the EDA enter into a Real Estate Purchase Agreement whereby the EDA would purchase the Property from Beard if the proposed redevelopment project does not move forward. The Purchase Agreement includes language which automatically terminates the Agreement and its obligations of the EDA if Beard enters into an agreement with the EDA or City of Prior Lake addressing redevelopment of the Property, such as a Development or TIF Agreement. The EDA and Beard have entered into a Purchase Agreement with similar guarantee terms for another property Beard has purchased at 16298 Main Avenue SE. Because funding has already been obligated by the EDA to facilitate the initial property purchase, the EDA does not have enough funds to guarantee the purchase of this second Property and still maintain enough funding to accomplish their EDA initiatives. On Monday, January 6, 2020, the City Council approved a resolution authorizing the EDA to enter into a purchase agreement with Beard for the property at 4656 Pleasant St. SE. The resolution ensures necessary funding will be available to the EDA should they need to purchase the Pleasant Street property in 2022. If necessary, the financing options would be reviewed and determined by the Finance Director (use of reserves, tax levy, debt issuance, etc.) ISSUES: If redevelopment of this block does not occur, the EDA would be required to purchase the Property on or before January 6, 2022 at a purchase price of $350,000, plus costs Beard incurs to purchase the property up to $25,000 and future closing costs. If the EDA is required to acquire the Property, the EDA would be purchasing the property as-is. This means that regardless of what might be wrong either with title to the property or physically, the EDA must purchase the property. FINANCIAL IMPACT: No financial impact is anticipated in 2020 or 2021 related to this Purchase Agreement. There is a potential financial impact in 2022, including acquisition costs of $350,000 plus closing costs. ALTERNATIVES: 1. Motion and second to approve a resolution authorizing the EDA President and Executive Director to enter into a real estate purchase agreement with The Beard Group, Inc. 2. Motion and second to deny a resolution authorizing the EDA President and Executive Director to enter into a real estate purchase agreement with The Beard Group, Inc. 3. Provide direction to staff. RECOMMENDED MOTION: ATTACHMENT: Alternative No. 1 1. Real Estate Purchase Agreement DMNORTH #7085937 v1 REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT (the “Agreement”) is made effective as of _______________, 20____ (the “Effective Date”), between The Beard Group, Inc., a Minnesota corporation (“Seller”), and the Economic Development Authority for the City of Prior Lake, Minnesota, a Minnesota municipal corporation (“Buyer”). In consideration of this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows: 1. Sale of Property. Seller shall sell to Buyer, and Buyer shall buy from Seller, the following property pursuant to the terms and conditions herein set forth (collectively, the “Property”): (a) Real Property. The improved real property located at 4656 Pleasant Street SE, Prior Lake, Minnesota, legally described on attached Exhibit A, together with all privileges, rights, easements, hereditaments and appurtenances thereto belonging and all right, title and interest of Seller in and to any streets, alleys, passages and other rights of way included therein or adjacent thereto (before or after the vacation thereof) and together with all improvements located thereon (collectively, the “Real Property”). (b) Records. All records in Seller’s possession related to the Property. 2. Purchase Price and Manner of Payment. The total purchase price for the Property is $350,000.00, plus all acquisition costs actually incurred and paid by Seller in purchasing the Property (e.g. closing costs, title commitment cost and title policy premium, real estate taxes, and interest paid by Seller on the foregoing amounts, but excluding any development costs incurred by Seller (e.g. architect and engineering fees, environmental review costs, and survey costs)), less any amounts actually received by Seller for payments of such costs under any currently existing leases of the Property; provided, however, the total acquisition costs, as adjusted by payments of costs under the lease, shall not to exceed $25,000.00 (the “Purchase Price”). On the Closing Date (as hereinafter defined), the Purchase Price, subject to increase or decrease due to prorations and adjustments required pursuant to this Agreement, shall be paid by Buyer in immediately available funds to Guaranty Commercial Title, LLC (the “Title Company”) to be disbursed pursuant to the Settlement Statement (as hereinafter defined). 3. Automatic Termination. Seller shall be obligated to sell the Property and Buyer shall be obligated to buy the Property as provided for in this Agreement; except that, this Agreement shall automatically terminate if Seller enters into an agreement with Buyer or with the City of Prior Lake with mutually agreeable terms addressing the redevelopment of the Property. Such mutually agreeable terms shall include, among other terms, language addressing whether existing tenants will qualify for relocation benefits and the unavailability of relocation benefits for subsequent tenants. 4. Closing. The closing of the purchase and sale contemplated by this Agreement (the “Closing”) shall occur on January 6, 2022, or such earlier or later date agreed to in writing by Buyer and Seller (the “Closing Date”). The Closing shall take place at 10:00 a.m. local time at the Title 2 DMNORTH #7085937 v1 Company’s office unless another location is mutually agreed upon by the parties. Seller shall deliver possession of the Property to Buyer on the Closing Date. 5. Closing Documents. (a) On the Closing Date, Seller shall execute and/or deliver to Buyer the following (collectively, the “Seller’s Closing Documents”), provided by Buyer for Seller’s execution: (1) Special Warranty Deed. A Special Warranty Deed conveying Seller’s interest in the Real Property to Buyer. (2) Seller’s Affidavit. An Affidavit of Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Property at Seller’s request for which payment has not been made or for which mechanics’ liens could be filed and that to Seller’s knowledge there are no other unrecorded interests in the Property. (3) FIRPTA Affidavit. A non-foreign affidavit, properly executed and in recordable form, containing such information as is required by IRC Section 1445(b)(2) and its regulations. (4) Executive Order Affidavit. An affidavit properly executed satisfying Buyer and Title Company that the Seller is not a blocked person under Executive Order 13224. (5) Other Documents. All other documents reasonably determined to be necessary to transfer the fee interest in the Property to Buyer in the manner specified herein. (6) Settlement Statement. A closing or settlement statement reflecting the financial provisions of the Closing, consistent with the provisions of this Agreement (the “Settlement Statement”). (b) Buyer’s Closing Documents. On the Closing Date, Buyer shall execute and/or deliver to Seller the following: (1) Purchase Price Payment. Payment of the Purchase Price in immediately available funds to the Title Company for disbursement pursuant to the Settlement Statement. (2) Title Documents. Such Affidavits of Buyer, Certificates of Real Estate Value or other documents as may be reasonably required by Title Company in order to record the Seller’s Closing Documents. (3) Settlement Statement. The Settlement Statement. 3 DMNORTH #7085937 v1 6. Prorations. Seller and Buyer agree to the following prorations and allocation of costs regarding this Agreement: (a) Closing Fees. Buyer shall pay the Title Company’s closing fee or charge. (b) Real Estate Taxes and Special Assessments. General real estate taxes and installments of special assessments payable therewith (“Taxes”) due and payable in the year prior to the year in which the Closing Date occurs and all prior years shall be paid by Seller. Unless otherwise paid pursuant to any leases of the Property, Taxes and special assessments due and payable in the year in which the Closing Date occurs shall be prorated between Seller and Buyer as of the Closing Date. Buyer shall assume the obligation to pay the Taxes and installments of special assessments due and payable in the year subsequent to the year in which the Closing Date occurs and thereafter. (c) Recording Costs. Buyer will pay the state deed tax. Seller will pay the cost of recording all documents necessary to place record title in the condition warranted and represented by Seller in this Agreement. Buyer shall pay the cost to record the Special Warranty Deed. (d) Other Costs. All other utilities, fees, costs, expenses, operating costs of the Property and any other expenses shall be prorated between Seller and Buyer as of the Closing Date. (e) Attorneys’ Fees. Each of the parties will pay its own attorneys’ fees, except that a party defaulting under this Agreement or any closing document will pay the reasonable attorneys’ fees and court costs incurred by the non-defaulting party to enforce its rights regarding such default. 7. AS IS; No Representations or Warranties by Seller. Except as expressly stated in this Agreement or in the closing documents provided by Seller pursuant hereto, Seller makes no representation or warranty to Buyer. Buyer acknowledges that in purchasing the Property the Buyer is not relying upon any representations of Seller as to the fitness for any particular use, or the condition or safety of the Property, including, but not limited to, environmental conditions. Buyer acknowledges and agrees that Seller has not made, does not make and specifically negates and disclaims any representations, warranties, promises, covenants, agreements of any kind whether expressed or implied, oral or written, past, present or future relating to or arising from the Property, including but not limited to (a) the value, nature, quality or condition of the Property including, without limitation, the environmental condition of the Property; (b) the income to be derived from the Property; (c) the suitability of the Property for any and all activities and uses to which the Buyer may want to conduct on the Property; and (d) the compliance of or by the Property with any laws, rules, ordinances or regulations of any applicable governmental authority. Buyer on behalf of Buyer, and its successors and assigns, unconditionally and absolutely waives, releases and forever discharges the Seller, and its directors, officers, employees, contractors, agents or other representatives, and its successors and assigns, from any and all claims, demands, rights, and causes of action of whatsoever kind and nature, arising from, and by reason of any and all express and/or implied agreements involving the Property, and any other matters known or unknown which may 4 DMNORTH #7085937 v1 presently exist. To the maximum extent permitted by law, the sale of the Property is provided for herein is made on a “as-is”, “where-is” condition and basis with all faults. 8. Operation Prior to Closing. During the period from the Effective Date to the Closing Date (the “Executory Period”), Seller shall operate and maintain the Property in the ordinary course of business in accordance with prudent, reasonable business standards, including the maintenance of adequate liability insurance, including vandalism and malicious mischief in reasonable amounts. However, Seller shall execute no contracts, leases or other agreements regarding the Property during the Executory Period without the prior written consent of Buyer. 9. Broker’s Commission. Seller and Buyer represent to each other that they have dealt with no brokers, finders or the like in connection with this transaction, and agree to indemnify each other and to hold each other harmless against all other claims, damages, costs or expenses of or for any fees or commissions resulting from their separate actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any such fees or commissions incurred by the other party, including reasonable attorneys’ fees. 10. Assignment. Neither party may assign its rights under this Agreement without the prior written consent of the other party. 11. Remedies. If Seller defaults under this Agreement, Buyer’s sole remedy shall be to terminate this Agreement by giving written notice to Seller. If Buyer defaults under this Agreement and such default is not remedied by Buyer within thirty (30) days after written notice of default is given by Seller to Buyer, Seller shall be entitled only to the right to require specific performance by the Buyer, and Buyer hereby agrees to waive any and all defenses to such an action. 12. Notices. Any notices required or permitted to be given hereunder shall be in writing and shall be effective: (i) when delivered personally, (ii) when received by overnight courier service or electronic (e-mail) communications (provided that a copy of such notice is deposited in the United States mail within one (1) business day of the email transmission), or (iii) three (3) days after being deposited in the United States Mail (sent certified or registered, return receipt requested), in each case addressed as follows (or to such other address as the parties hereto may designate in the manner set forth herein): If to Buyer: Economic Development Authority for the City of Prior Lake, Minnesota 4646 Dakota St. SE Prior Lake, MN 55372 Attn: Casey McCabe Email: cmccabe@CityofPRIORLAKE.com 5 DMNORTH #7085937 v1 with a copy to: Hoff Barry, P.A. 100 Prairie Center Drive, Suite 200 Eden Prairie, MN 55344 Attn: Sarah Schwarzhoff Email: sschwarzhoff@hoffbarry.com If to Seller: The Beard Group, Inc. 750 2nd Street NE, Suite 100 Hopkins, MN 55343 Attn: William H. Beard Email: billb@beardgroupinc.com with a copy to: Ballard Spahr LLP 2000 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Attn: Laura L. Krenz Email: krenzl@ballardspahr.com 13. Entire Agreement; Modification. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the Property. There are no verbal agreements that change this Agreement and no waiver of any of its terms will be effective unless in a writing executed by the parties. 14. Binding Effect. This Agreement binds and benefits the parties and their successors and assigns. 15. Controlling Law. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. 16. Counterparts. This Agreement may be executed separately and independently in any number of counterparts and each and all of which together shall be deemed to have been executed simultaneously and regarded as one agreement dated the Effective Date. [Signature Page Follows] 6 DMNORTH #7085937 v1 IN AGREEMENT, Seller and Buyer have executed this Agreement as of the date first written above. SELLER: The Beard Group, Inc. By: William H. Beard Its: President BUYER: Economic Development Authority for the City of Prior Lake, Minnesota By: David Chromy Its: President And By: Jason Wedel Its: Executive Director DMNORTH #7085937 v1 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [to be added] Scott County PIN 250020120 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 20-02 EDA RESOLUTION AUTHORIZING THE EDA PRESIDENT AND EXECUTIVE DIRECTOR TO ENTER INTO A REAL ESTATE PURCHASE AGREEMENT WITH THE BEARD GROUP, INC. Motion By: Second By: WHEREAS, WHEREAS, The City of Prior Lake Economic Development Authority (“EDA”) has been working with The Beard Group, Inc. (“Beard”) on a potential downtown redevelopment project along Main Avenue SE; and Beard has entered into a purchase agreement to acquire a single-family residential property at 4656 Pleasant Street SE; PID 250020120 (“Property”) to facilitate a downtown Prior Lake redevelopment project; and WHEREAS, Beard has requested the EDA enter into a Real Estate Purchase Agreement whereby the EDA would purchase the Property from Beard if the proposed redevelopment project does not move forward; and WHEREAS, WHEREAS, If the redevelopment of this block does occur and Beard enters into an agreement with the EDA or City of Prior Lake addressing redevelopment of the Property, such as a Development or TIF Agreement, the Real Estate Purchase Agreement includes language which automatically terminates the Agreement and its obligations of the EDA; and If redevelopment of this block does not occur, the EDA would be required to purchase the Property on or before January 6, 2022 at a purchase price of $350,000, plus costs Beard incurs to purchase the property up to $25,000 and future closing costs. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY as follows: 1. The recitals set forth above are incorporated herein. 2. The EDA President and Executive Director are authorized to enter into a Real Estate purchase Agreement with The Beard Group, Inc. for property located at 4656 Pleasant Street. SE. PASSED AND ADOPTED THIS 13th DAY OF JANUARY 2020. VOTE Chromy Braid Sheehan- Kerber Briggs Boucher- Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, Executive Director