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Home My WebLink About06 10 11 2024 EDA Agenda Packet Phone 952.447.9800 / www.priorlakemn.gov 4646 Dakota Street SE Prior Lake, MN 55372 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY AGENDA Monday, June 10, 2024 – 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 / 2024 / June 10, 2024 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. March 11, 2024 4. CONSENT AGENDA A. Monthly Development Update (5/31/2024) 5. REMOVED CONSENT AGENDA ITEMS 6. PRESENTATIONS 7. OLD BUSINESS 8. NEW BUSINESS A. EDA Property Tax Exemptions B. Consider a Request to Transfer Property from the City of Prior Lake to the EDA 9. OTHER BUSINESS A. Staff Updates B. Commissioner Comments 10. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MINUTES Monday, March 11, 2024 – 4:00 p.m. Parkview Conference 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 / 2024 / March 11, 2024 1. CALL TO ORDER Chair Prchal called the meeting to order at 4:01 p.m. In attendance were Prchal, Marco, Boucher-Hoese, and Briggs. Absent was Commissioner Braid. Also present were Executive Director Wedel, staff Liaison McCabe, and Deputy City Clerk / Administrative Assistant Kooiman 2. APPROVAL OF AGENDA MOTION BY BOUCHER-HOESE, SECONDED BY MARCO TO APPROVE THE AGENDA. Ayes by Prchal, Briggs, Marco, and Boucher-Hoese. The motion carried 4-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRIGGS, SECONDED BY MARCO TO APPROVE THE NOVEMBER 13, 2023, MEETING MINUTES. Ayes by Prchal, Briggs, Marco, and Boucher-Hoese. The motion carried 4-0. . 4. CONSENT AGENDA A. Monthly Development Update (2/29/2024) a. C/I as % of New Construction MCCABE reviewed the monthly development update and highlighted the percentage of new commercial / industrial development over the past several years. MOTION BY BOUCHER-HOESE, SECONDED BY BRIGGS TO APPROVE THE CONSENT AGENDA. Ayes by Prchal, Briggs, Marco, and Boucher-Hoese. The motion carried 4-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PRESENTATIONS A. Scott County CDA / Center for Entrepreneurship Update Jo Foust, Scott County CDA Business & Community Development Director and Michael Werneke, Scott County CDA Business Development Manager were in attendance to update the EDA what the CDA has been working on and the different services they offer throughout the county. CDA staff explained to the commissioners how they can help small business grow, assist in marketing and filling available development sites, and walked through the different steps they take with the small business and how the mentorship works in the Center for Entrepreneurship. 7. OLD BUSINESS None 8. NEW BUSINESS A. Fast-Track Challenge Sponsorship 4646 Dakota Street SE Prior Lake, MN 55372 MCCABE provided a brief overview of the Fast Track Business Challenge event and noted the Scott County CDA is seeking sponsorship for this year’s event. McCabe stated the EDA has sponsored the event in the past. EDA commissioners discussed previous year contributions, what the funds should be used for, and how much they should contribute to the event. Commissioners asked what else the donation could be used for. Commissioners were content donating the same as last year to be used towards marketing contract or other services for the event, as opposed to a cash contribution for an event winner. MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE TO APPROVE FAST-TRACK SPONSORSHIP IN THE AMOUNT OF $1,000. Ayes by Prchal, Briggs, Marco, and Boucher-Hoese. The motion carried 4-0. 9. OTHER BUSINESS A. Staff Updates I. Colorado St. Property Purchase MCCABE updated the commissioners about the Purchase of the Colorado St. Property. The homeowner agreed to terms and the closing is scheduled for March 20th. The current property owners will be renting the home from the EDA as of the closing date until the end of June 2024. II. Orderly Annexation Agreement MCCABE updated the commissioners on the Orderly Annexation Agreement. Commissioners discussed the new housing bill in relation to the Orderly Annexation Agreement and how the new bill may impact the annexation of Spring Lake parcels. Commissioners also discussed potential impacts to commercial development if the bill is passed. B. Commissioner Comments Commissioners discussed whether a letter should be sent to state representatives from the Prior Lake EDA related to the proposed housing legislation and potential impact to commercial development. Commissioners felt Prior Lake has been very vocal in opposition as a city and felt a letter from the Chamber of Commerce or DEED expressing concerns over the loss of commercial property may be more impactful. 10. ADJOURNMENT MOTION BY MARCO, SECOND BY BOUCHER-HOESE TO ADJOURN THE MEETING. Ayes by Prchal, Briggs, Marco, and Boucher-Hoese. The motion carried 4-0. The meeting adjourned at 5:24 p.m. Submitted by Megan Kooiman 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: June 10, 2024 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 May 31, 2024. 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 May 31, 2024. 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: June 10, 2024 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 May 31, 2024. Single Family Dwellings 30 $14,700,496.00 33 $14,377,789.00 Townhouses (# units)4 $672,000.00 0 $0.00 Multiple Units 1 $28,733,056.00 0 $0.00 New Commercial Industrial & Commercial 1 $1,500,000.00 1 $272,000.00 Residential 379 $9,779,757.32 320 $5,685,734.07 Industrial & Commercial 7 $2,133,748.00 0 $0.00 tMechanical 388 $0.00 228 $0.00 ttMechanical (SF & TH)120 $0.00 132 $0.00 TOTALS 930 $57,519,057.32 714 $20,335,523.07 182.85% 451.47% 72.01% #DIV/0! n/a n/a 2024 Year to Date 2023 Year to Date New Residential 70.18% -9.09% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease 2.24% 100.00% #DIV/0! 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 -9.09% 100.00% #DIV/0! 0.00% 18.44% #DIV/0! Number of Permits Declared Value 30.25% 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: June 10, 2024 AGENDA #: 8A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: EDA Property Tax Exemptions DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution certifying four EDA-owned parcels are being held for economic development purposes and therefore are eligible for property tax exempt status under Minnesota Statutes, Section 272.02, Subdivision 39, Economic Development; Public Purpose. History Four EDA-owned parcels acquired for economic development purposes are be- ing recommended by staff for property tax exempt status. 4664 Dakota Street SE (PID 255650030) • The City of Prior Lake acquired this single-family property in September 2014 for redevelopment purposes. • The home was rented for several years but has been vacant since No- vember 2020. • The City transferred ownership of this property, which also includes the east 37.5’ of Lots 3, 4, 5, and 6, Block 8, City of Prior Lake, to the EDA in March 2020 and transferred the north 100 feet of this parcel to the EDA in March 2023. • The property transfers from the City to the EDA were intended to facilitate a future redevelopment project. 4662 Dakota Street SE (PID 255650020) • The EDA acquired this single-family property in January 2020 for rede- velopment purposes. • The home has been vacant since the EDA acquired it. • The City transferred the north 100 feet of this parcel to the EDA in March 2023. 4528 Colorado Street SE (PID 250011250) • The EDA acquired this single-family property in November 2021 for rede- velopment purposes. • The home has been vacant since the EDA acquired it. 4556 Colorado Street SE (PID 250011230) • The EDA acquired this single-family property in March 2024 for redevel- opment purposes. • The home is currently occupied and is being rented by the EDA to the previous property owners until June 30, 2024, at which time it will remain vacant and held for redevelopment purposes. 2 Current Circumstances City staff believes the four parcels identified above are eligible for property tax exemption as an economic development public purpose under Minnesota Stat- utes, section 272.02, subdivision 39. Subdivision 39, economic development; public purpose states in part, the hold- ing of property by a political subdivision of the state for later resale for economic development purposes shall be considered a public purpose in accordance with subdivision 8 [property used for public purposes] for a period not to exceed nine years. The governing body of the political subdivision which acquires property that is subject to this subdivision shall after the purchase certify to the county as- sessor whether the property is held for economic development purposes. or housing purposes, or whether it meets the conditions of section 469.174, subdi- vision 10 (redevelopment district). Conclusion City staff believes the four EDA-owned parcels identified above are eligible for property tax exemption as they are being held for an economic development public purpose. Issues The EDA does own another property which was acquired for redevelopment purposes but is not being considered for property tax exemption because it is currently occupied. Minnesota Statutes, section 272.02, subdivision 39 states, if a property is acquired for economic development purposes and if more than one- half of the floor space of the building is available for lease or leased to a private individual, corporation, or other entity, the provisions of this subdivision shall not apply to the property. The cutoff date to apply and for receiving approval of a property tax exempt use is July 1st in order to be effective for the following tax year (2025). FINANCIAL IMPACT: 2024 property taxes payable for the four parcels are: • 4664 Dakota Street SE ($2,950) • 4662 Dakota Street SE ($3,254) • 4528 Colorado Street SE ($2,542) • 4556 Colorado Street SE ($2,424) If approved by Scott County, the property tax exemptions would result in a sav- ings of approximately $11,000 in the 2025 and future EDA budgets. ALTERNATIVES: 1. Motion and second approving a resolution certifying four EDA-owned parcels are being held for economic development purposes and therefore are eligible for property tax exempt status. 2. Motion and second to deny the resolution. 3. Table item and continue discussion at a future meeting. RECOMMENDED MOTION: Alternative No. 1. ATTACHMENT: 1. Location Map Location Map EDA Owned Parcels 4664 Dakota Street SE 4662 Dakota Street SE 4528 Colorado Street SE 4556 Colorado Street SE 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 24-03 EDA RESOLUTION CERTIFYING FOUR PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY OWNED PARCELS ARE BEING HELD FOR ECONOMIC DEVELOPMENT PURPOSES AND ARE THEREFORE ELIGIBLE FOR PROPERTY TAX EXEMPTION UNDER MINNESOTA STATUTES, SECTION 272.02, SUBDIVISION 39, ECONOMIC DEVELOPMENT; PUBLIC PURPOSE Motion By: Second By: WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Minnesota Statutes, section 272.02, subdivision 39, economic development; public purpose states in part, the holding of property by a political subdivision of the state for later resale for economic development purposes shall be considered a public purpose in accordance with subdivision 8 [property used for public purposes] for a period not to exceed nine years. The governing body of the political subdivision which acquires property that is subject to this subdivision shall after the purchase certify to the county assessor whether the property is held for economic development purposes. or housing purposes, or whether it meets the conditions of section 469.174, subdivision 10 [redevelopment district]; and The Prior Lake Economic Development Authority (EDA) owns four parcels being held for economic development purposes; and The four EDA-owned parcels being held for economic development purposes include: • A single-family home at 4664 Dakota Street SE, Prior Lake, MN 55372, legally described as Lot 3, Block 1, City Hall Plaza (PID 255650030); • A single-family home at 4662 Dakota Street SE, Prior Lake, MN 55372 legally described as Lot 2, Block 1, City Hall Plaza (PID 255650020); • A single-family home at 4528 Colorado Street SE, Prior Lake, MN 55372 legally described as Lot 5 and the east 19 feet of Lot 6, Block 16, City of Prior Lake (PID 250011250); • A single-family home at 4556 Colorado Street SE, Prior Lake, MN 55372 legally described as Lot 3 and the west 20 feet of Lot 2, Block 16, City of Prior Lake (PID 250011230); and The single-family homes at 4664 Dakota Street SE, 4662 Dakota Street SE, and 4528 Colorado Street SE are all currently vacant and will remain vacant until a future redevelopment project; and The single-family home at 4556 Colorado Street SE is currently occupied but will be vacant by June 30, 2024 and will then remain vacant until a future redevelopment project; and The EDA met on May 13, 2024 to review and certify the four EDA-owned parcels identified above are being held for economic development purposes and are therefore eligible for property tax exemption. L:\24 FILES\EDA\EDA Agenda Packets\06 10 2024 EDA Agenda Packet\06 10 2024 EDA Report 8A_Res.docx 2 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 four EDA-owned parcels identified above are being held for economic development purposes and are therefore eligible for property tax exemption. 3. The EDA Executive Director, or their designee, is authorized to file an Application for Property Tax Exemption and provide a copy of this resolution to the Scott County Assessor certifying these four parcels are being held for economic development purposes. PASSED AND ADOPTED THIS 10th DAY OF JUNE 2024. VOTE Prchal Braid Marco Briggs Boucher- Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ____________________________ Jason Wedel, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: June 10, 2024 AGENDA #: 8B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Consider a Request to Transfer Property from the City of Prior Lake to the EDA DISCUSSION: Introduction The purpose of this agenda item is to consider a request to the City Council to transfer ownership of a parcel to the EDA for future economic redevelopment purposes. History The City of Prior Lake acquired an approximate 0.34-acre parcel (PID 250011220) at the southwest corner of the CH21/Arcadia Avenue intersection via condemnation in 2012. The parcel was previously occupied by a single-family home and was acquired, along with one additional single-family parcel, to facili- tate the CH21/Arcadia Avenue intersection project. The acquisition of this prop- erty was necessary as the project included an extension of Arcadia Avenue south from CH21 to Colorado Street. A portion of the property was used for right- of-way purposes and the City of Prior Lake maintains ownership over the ap- proximate 0.25-acre remnant parcel. The Prior Lake EDA has acquired two parcels on this same block in recent years. 4528 Colorado Street SE (PID 250011250) was acquired in November 2021 and 4556 Colorado Street SE (PID 250011230) was acquired in March 2024; both for redevelopment purposes. Current Circumstances The block located north of Colorado Street and south of CH21, between Duluth Avenue and Arcadia Avenue, includes six parcels totaling approximately 1.79 acres. Three of the parcels (0.92 acres) are owned privately, two parcels (0.62 acres) are owned by the EDA, and one parcel (0.25 acres) is owned by the City of Prior Lake. Conclusion Staff is recommending the EDA request the City Council transfer ownership of PID 250011220 to the EDA for future economic redevelopment purposes. ALTERNATIVES: 1. Motion and second request the City Council to transfer ownership of PID 250011220 to the EDA for future economic redevelopment purposes. 2. Decline to approve the recommended motion. 3. Table item and continue discussion at a future meeting. RECOMMENDED MOTION: Alternative No. 1. ATTACHMENT: 1. Location Map Location Map Su b j e c t P r o p e r t y PI D 2 5 0 0 1 1 2 2 0 ED A -Ow n e d Pr o p e r t y 45 5 6 C o l o r a d o S t . ED A -Ow n e d Pr o p e r t y 45 2 8 C o l o r a d o S t .