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Home My WebLink About_09 11 2023 EDA Agenda Packet Phone 952.447.9800 / www.priorlakemn.gov 4646 Dakota Street SE Prior Lake, MN 55372 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA) AGENDA Monday, September 11, 2023 – 4:00 p.m. Parkview Community Room Reports included with this agenda can be found on the City of Prior Lake website at www.cityofpriorlake.com Please follow this file path: Agendas & Minutes / Economic Development Authority / 2023 / September 11, 2023 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. August 14, 2023 4. CONSENT AGENDA A. Monthly Development Update (7/31/2023) 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS A. None 7. OLD BUSINESS A. Resolution Approving Request for 2024 EDA Tax Levy and Budget 8. NEW BUSINESS A. EDA Property Acquisition Opportunities 9. OTHER BUSINESS A. Staff Updates i. Legislative Priorities ii. Chalk Fest iii. Orderly Annexation Work Group iv. Next Meeting October 9, 2023 B. Commissioner Comments 10. ADJOURNMENT Phone 952.447.9800 / priorlakemn.gov 4646 Dakota Street SE Prior Lake, MN 55372 Economic Development Authority Meeting Minutes Monday, August 14, 2023 1. CALL TO ORDER Vice Chair Boucher-Hoese called the meeting to order at 4:00 p.m. In attendance were Boucher-Hoese, Braid, Briggs, and Marco. Absent was Prchal. Also present were CEC Liaison Speiker, Executive Director Wedel, and staff Liaison McCabe. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE AGENDA. Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRIGGS, SECONDED BY MARCO TO APPROVE THE JUNE 12, 2023, MEETING MINUTES. Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0. 4. CONSENT AGENDA A. Monthly Development Update (7/31/2023) B. Appoint ACC Member MOTION BY BRIGGS, SECONDED BY MARCO TO APPROVE THE CONSENT AGENDA. Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PRESENTATIONS None 7. OLD BUSINESS None 8. NEW BUSINESS A. Proposed 2024 EDA Tax Levy and Budget Review Director McCabe: introduced the item to review and discuss the proposed 2024 EDA tax levy and budget. The EDA annually reviews and requests City Council approval of the EDA tax levy and budget. The EDA cannot levy a tax without city council approval, as Article 10.2 of the EDA Bylaws requires city council approval of the EDA annual budget. McCabe summarized the proposed revenues and expenditures and stated following direction from the EDA, staff will prepare a resolution for EDA consideration at their September 11, 2023 meeting requesting City Council approval of the proposed 2024 Prior Lake EDA tax levy and budget. The recommended 2024 EDA budget and tax levy will be presented to the City Council as they consider adoption of the preliminary 2024 budget and tax levy at their September 18, 2023 meeting. Braid: asked if the budget includes fiscal disparities. McCabe: stated fiscal disparities are included in the requested levy. Marko suggested a plan for targeted future property acquisitions should be added to a future agenda for EDA review; adding, targeted EDA acquisitions can help create distinctive connections for commercial space and opportunities for commercial expansion. Briggs: commented on commercial development opportunities at the highway 282/13/17 intersection and suggested there may be a future opportunity for the EDA to help facilitate development in that area. 9. OTHER BUSINESS A. Staff Updates i. Cannabis Legalization Wedel: provided an overview of new state regulations related to adult use cannabis. Wedel informed the EDA the City Council passed three resolutions related licensing of low dose hemp derived THC products as the pre- viously approved moratorium has expired; a new moratorium on adult use cannabis until January 1, 2025; and an ordinance prohibiting the use of cannabis in public. ii. Prior Lake Community Artist McCabe: updated the EDA on the Arts and Culture Committee’s Community Artist program. The committee has approved a mural for installation on the south facing wall of the 16228 Main Avenue building. The mural will include a community painting component that will begin on Friday, September 15th during Chalk Fest. Mural completion is anticipated by the end of September. iii. Orderly Annexation Meeting Wedel: informed the EDA that a meeting was recently held with representatives of Scott County, Spring Lake Township, City of Prior Lake and Scott County CDA to discuss the annexation agreement between the City of Prior Lake and Spring Lake Township. The outcome of this meeting was the formation of a work group that will be meeting over the next several months to address topics that came up during the discussion. iv. Next Meeting September 11, 2023 B. Commissioner Comments None. ADJOURNMENT MOTION BY BR, SEIGGSCONDED BY MARCO TO ADJOURN THE MEETING. Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0. The meeting adjourned at 5:29 pm. Submitted by Casey McCabe 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 11, 2023 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 to date residential and commercial development update as of August 31, 2023. History EDA Commissioners requested an update of residential and commercial activity at each meeting. Conclusion The attached memorandum provides a summary of the residential and commer- cial development in the City of Prior Lake as of August 31, 2023. 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 / www.priorlakemn.gov Memo Date: September 11, 2023 To: City of Prior Lake Economic Development Authority From: Casey McCabe, Community Development Director Subject: Residential & Commercial Activity Update Below is an update of the year to date residential and commercial development in the City of Prior Lake as of August 31, 2023. Single Family Dwellings 55 $24,209,130.00 67 $28,931,786.50 Townhouses (# units)0 $0.00 4 $672,000.00 Multiple Units 0 $0.00 0 $0.00 New Commercial Industrial & Commercial 3 $5,844,460.00 0 $0.00 Residential 746 $12,478,088.26 787 $12,726,236.09 Industrial & Commercial 16 $1,091,739.00 15 $838,732.59 tMechanical 398 $0.00 568 $0.00 ttMechanical (SF & TH)220 $0.00 284 $0.00 TOTALS 1438 $43,623,417.26 1725 $43,168,755.18 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 -17.91% -100.00% #DIV/0! #DIV/0! -5.21% 6.67% Number of Permits Declared Value -16.64% 2023 Year to Date 2022 Year to Date New Residential -29.93% -22.54% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -16.32% -100.00% #DIV/0! 1.05% #DIV/0! -1.95% 30.17% n/a n/a Name Address Type (New/Relocation/Expansion) Previous Tenant/Owner New SF Status Park Place Storage Phase I 6010 170th Street New Business Vacant / SF Home 84,870 Issued Caribou Cabin 4100 Village Lake Drive SE New Business Vacant 605 Issued Scooter's Coffee 15825 Franklin Trail SE New Business Vacant 668 Issued Fountain Hills Warehouse 4300 Fountain Hills Drive NE New Business Vacant 7,220 In Review Jeffers Lodge 3884 Fountain Hills Drive NE New Business Vacant 7,500 In Review TOTAL 100,863 2023 Prior Lake Commercial Activity (New Construction) 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 11, 2023 AGENDA #: 7A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Resolution Approving Request for 2024 EDA Tax Levy and Budget DISCUSSION: Introduction The purpose of this agenda item is to consider approval of the attached resolu- tion approving the 2024 Prior Lake Economic Development Authority (EDA) tax levy and budget. History The EDA annually reviews and requests City Council approval of the EDA tax levy and budget. The EDA cannot levy a tax without city council approval, as Article 10.2 of the EDA Bylaws requires city council approval of the EDA annual budget. Commissioners reviewed the proposed levy and budget during their August 14, 2023 meeting; no budget or levy revisions were recommended at that time. Current Circumstances The proposed 2024 EDA budget is summarized as follows: ➢ The budget includes estimated revenues of $418,288 and estimated ex- penditures of $647,497. ➢ Estimated revenues include an EDA tax levy of $390,000, interest earnings of $3,700 and facility rentals of $24,588, based on anticipated rental reve- nues from the 16298 Main Avenue SE property. ➢ The EDA tax levy is proposed to increase $20,000 over 2023. ➢ The budget includes a planned use of EDA fund balance of $229,209. ➢ The budget includes 50% personnel support for one staff member and 25% personnel support for two staff members. ➢ The budget includes a planned expenditure of $385,000 for property ac- quisition; a specific property(ies) has not been identified. ➢ As in recent years, the proposed 2024 budget includes a $75,000 expendi- ture in the Professional Services – General line item should the EDA wish to conduct or participate in any economic development related studies. ➢ The budget includes a $19,000 expenditure in the Miscellaneous Expense line item. This funding includes property tax payments and maintenance for four EDA owned parcels; 4662 & 4664 Dakota Street SE, 16298 Main Avenue SE, and 4528 Colorado Street SE. 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. Based on 2024 preliminary valuation data, Prior Lake is anticipating a total estimated market value of $6,254,813,300 which would allow for a maximum EDA tax levy of $1,133,998; the proposed levy is $390,000. 2 Arts and Culture Committee Funding The EDA established the Arts and Culture Committee (ACC) in 2021. Since that time, the EDA has annually allocated a portion of its Professional Services – Gen- eral funding to the ACC to help achieve mutually agreed upon strategic priorities. Staff is requesting direction from the EDA related to the amount of Professional Services – General funding for the ACC in 2024. Since their inception, through the use of allocated EDA funds and private invest- ment, the ACC has: ➢ Created and installed a skateboard themed bench near the skate park in Lakefront Park; ➢ Had two quotes sandblasted in the sidewalk along Main Avenue; ➢ Initiated a Prior Lake Community Artist program and identified a 2023 Community Artist who will be painting a large mural on a downtown prop- erty in 2023; ➢ Assisted Public Works with a paint the plow activity at the last two annual Somethin’ ‘Bout a Truck events; ➢ Formed a Friends of the Arts non-profit organization for the purpose of fundraising for future public art installations throughout the community; and ➢ Supported community events that promote the arts, such as Chalk Fest and potential assistance for the Pleasant Street Art Crawl. The ACC prepared a Strategic Plan in 2022 to identify short- mid- and long-term initiatives; this plan anticipates the need for upwards of $25,000 in expenditures in 2024. The EDA allocated $10,000 to the ACC in 2022 and $15,000 in 2023. With the newly formed non-profit organization in its infancy, the ACC is requesting a more substantial allocation to the Arts and Culture Committee in 2024 than in previous years to accomplish key initiatives while allowing the non-profit time to ramp up and begin raising funds for future projects. ISSUES: The recommended 2024 EDA budget and tax levy will be presented to the City Council as they consider adoption of the preliminary 2024 budget and tax levy at their September 18, 2023 meeting. FINANCIAL IMPACT: Staff is estimating an EDA 2023 year-ending fund balance of $1,524,000; how- ever, $1,065,000 of this balance is restricted as it represents assets held for re- sale. The estimated EDA 2023 year-ending cash balance is $459,000. The pro- posed budget estimates a 2024 year-ending fund balance of $1,294,791 with $1,065,000 represented by assets held for resale. Should the EDA move forward with the sale of the 4662 and 4664 Dakota Street properties as anticipated, the fund balance represented by assets held for resale will decrease and the available cash balance will increase. ALTERNATIVES: 1. Motion and a second to approve a resolution requesting City Council approval of the proposed 2024 EDA tax levy of $390,000 and a total budget of $647,497. 2. Motion and a second to approve a resolution requesting City Council approval of alternative 2024 EDA tax levy and budget amounts as determined by the EDA. RECOMMENDED MOTION: Alternative #1. ATTACHMENT: 1. Proposed 2024 EDA Budget 08/09/2023 Economic Development Authority 2020 2021 2022 2023 2024 CHANGE AMENDED AMENDED AMENDED AMENDED PROPOSED 2023 to GL NUMBER DESCRIPTION BUDGET BUDGET BUDGET BUDGET BUDGET 2024 Dept. 46500.00 - ECONOMIC DEVELOPMENT Revenue 240-00000.00-31010.00 Current Property Taxes - General Purpose 274,750 349,750 360,000 370,000 390,000 20,000 240-46500.00-33610.14 County-City Aids/Grants - Operating EDA 240-46500.00-34760.02 Facility Rental - EDA 24,360 24,588 24,588 0 240-46500.00-36220.14 Prof Service Fee Deposit - EDA 240-00000.00-36210.00 Interest Earnings 7,560 5,300 5,400 2,600 3,700 1,100 240-00000.00-39203.00 Transfer from Other Funds 161,250 Total Revenue 443,560 355,050 389,760 397,188 418,288 21,100 Expenditures 240-46500.00-51100.01 Wages - Full Time 103,534 106,202 112,027 114,525 121,860 7,335 240-46500.00-51100.05 Wages - Commissioners 3,000 3,000 3,000 3,000 3,000 0 240-46500.00-51110.01 Overtime - Full Time 240-46500.00-51208.01 Sick Leave - Buy Down 0 0 0 0 1,421 1,421 240-46500.00-51301.00 Accrued Comp Time 240-46500.00-51400.00 Compensated Absences 621 637 728 744 792 48 240-46500.00-51450.00 Social Security Contributions 6,606 6,771 7,132 7,287 7,829 542 240-46500.00-51451.00 Medicare Contributions 1,545 1,583 1,668 1,704 1,831 127 240-46500.00-51460.00 PERA Contributions 7,825 8,025 8,462 8,649 9,199 550 240-46500.00-51470.00 Health Insurance 8,232 7,850 8,455 10,643 13,638 2,995 240-46500.00-51472.00 Retiree HCSP Contributions 240 240 240 300 300 0 240-46500.00-51473.00 Dental Insurance 540 540 540 540 701 161 240-46500.00-51474.00 Life Insurance 68 68 68 68 68 0 240-46500.00-51477.00 Workers Compensation Insurance 582 628 737 655 858 203 240-46500.00-52010.00 Office Supplies 240-46500.00-53020.00 Legal Services 2,000 2,000 1,000 1,000 1,000 0 240-46500.00-53100.80 Professional Services - General 311,492 380,000 78,300 75,000 75,000 0 240-46500.00-53210.00 Telecommunications 250 250 240-46500.00-53310.10 Training and Employee Development 500 500 500 500 500 0 240-46500.00-53510.00 Required Notice Publication 240-46500.00-53510.01 Maint Agreements Misc Bldg & Structures 5,000 5,000 5,000 0 240-46500.00-54310.00 Memberships and Subscriptions 500 500 500 500 500 0 240-46500.00-54320.00 Miscellaneous Expense 500 500 10,500 12,500 19,000 6,500 240-46500.00-55040.00 Projects - Property & ROW Acquisit'n 385,000 385,000 385,000 0 240-46500.00-55050.00 Projects - Professional Services Total Expenditures 448,035 519,294 623,857 627,615 647,497 19,882 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 23-06 EDA A RESOLUTION APPROVING THE 2024 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 Prior Lake Economic Development Authority (EDA), levy a tax in any year for the benefit of the EDA in an amount not to exceed 0.01813 percent of estimated market value; and WHEREAS, The EDA proposes a 2024 tax levy for economic development purposes in the amount of $390,000; and WHEREAS, The EDA proposes a 2024 annual budget in the amount of $647,497. 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 $390,000 to be collected in 2024 pursuant to Minnesota Statutes 469.107. 3. The EDA requests that the Prior Lake City Council adopt the 2024 EDA annual budget in the amount of $647,497. 4. The EDA authorizes expenditures of up to $_________ from EDA Professional Services – General (240- 46500.00-53100.80) for use by the City of Prior Lake Arts and Culture Committee to advance public art and culture initiatives. Passed and adopted this 11th Day of September 2023. VOTE Prchal Braid Marco Briggs Boucher-Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, Executive Director