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Home My WebLink About10 14 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, October 14, 2024 – 4:00 p.m. City Council Chambers Prior Lake City Hall, 4646 Dakota St. SE 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 / October 14, 2024 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. August 26, 2024 4. PRESENTATIONS 5. CONSENT AGENDA A. Monthly Development Update (9/30/2024) 6. REMOVED CONSENT AGENDA ITEMS 7. OLD BUSINESS 8. NEW BUSINESS A. Dakota Street Preliminary Development Agreement Extension B. Downtown Redevelopment Assistance C. 16298 Main Avenue SE Parking Lot Improvements D. Adult Use Cannabis Zoning Code Updates 9. OTHER BUSINESS A. Staff Updates i. Orderly Annexation Agreement with Spring Lake Township B. Commissioner Comments 10. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Monday, August 26, 2024 – 4:00 p.m. Parkview Conference Room 1. CALL TO ORDER Chair Prchal called the meeting to order at 4:00 p.m. In attendance were Prchal, Marco, Boucher-Hoese, and Briggs. Absent was Braid. Also present were Bill Beard, Ben Beard, and Courtney Dunkelberger with The Beard Group, Executive Director Wedel, staff Liaison McCabe, Deputy City Clerk / Administrative Assistant Kooiman, and CEC Liaison Speiker. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE TO APPROVE THE AGENDA. Ayes by Boucher-Hoese, Prchal, Briggs and Marco. The motion carried 4-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRIGGS, SECONDED BY MARCO TO APPROVE THE JUNE 10, 2024, MEETING MINUTES. Ayes by Boucher-Hoese, Briggs and Marco. Prchal Abstained. The motion carried 3-0-1. 4. PRESENTATIONS A. Cora Project Update – The Beard Group Bill Beard provided a project update to the commissioners, stated project entitlements are 95% complete, provided an overview of the construction bids and current interest rates. Mr. Beard discussed the increased costs due to material, labor and interest rates. EDA Commissioners: expressed support for the project and to continue working with The Beard Group. Bill Beard: discussed the predevelopment agreement which provides The Beard Group with an exclusive option to purchase the property. Mr. Beard shared the significant level of investment they have made in this project and expressed his commitment to the project. Mr. Beard shared options they are exploring to close the funding gap and requested EDA support for an extension of the predevelopment agreement. EDA Commissioners thanked the Beard Group for the update and encouraged future communication. Commissioners discussed an appropriate extension term for the predevelopment agreement and supported an extension to March 31, 2025. Commissioners directed staff to prepare an amendment to extend the predevelopment agreement term and invite the Beard Group back to an EDA meeting in February to receive another update after more is known about interest rates and construction costs. 5. CONSENT AGENDA A. Monthly Developments update (7/31/2024) B. Appointing Arts and Culture Committee Members MOTION BY BOUCHER-HOESE, SECONDED BY MARCO TO APPROVE THE CONSENT AGENDA. 4646 Dakota Street SE Prior Lake, MN 55372 Ayes by Boucher-Hoese, Prchal, Briggs and Marco. The motion carried 4-0. 6. REMOVED CONSENT AGENDA ITEMS None 7. OLD BUSINESS None 8. NEW BUSINESS A. Proposed 2025 EDA Tax Levy and Budget McCabe provided an overview of the proposed 2025 EDA Tax Levy and Budget, compared the 2025 budget to the 2024 budget, and provided an estimate of the year end cash balance. MOTION BY MARCO, SECONDED BY BOUCHER-HOESE TO APPROVE THE RESOLUTION APRROVING THE 2025 ECONOMIC DEVELOPMENT AUTHORITY TAX LEVY AND BUDGET Ayes by Boucher-Hoese, Prchal, and Marco. Briggs abstained. The motion carried 3-0-1. B. Community Artist Sculpture McCabe provided a recap of the Arts and Culture Committee’s (ACC) request for qualifications to identify a 2024 community artist, discussed the process to select an artist, and shared the artists proposal for a sculpture and its location in downtown Prior Lake. McCabe stated the ACC has approved of the design and location and is seeking EDA approval before moving forward with the next steps of fabrication and installation. EDA Commissioners were supportive of the sculpture design and proposed location. 9. OTHER BUSINESS A. Staff Updates McCabe stated the next regular EDA meeting is scheduled for September 9th, 2024 Commissioners supported canceling that meeting and reconvening on October 14th. McCabe informed the Commission that the city is seeking applicants for the Cora McQuestion award and a vacancy on the Community Engagement Committee. B. Commissioner Comments None. 10. ADJOURNMENT MOTION BY BRIGGS, SECOND BY BOUCHER-HOESE TO ADJOURN THE MEETING. Ayes by Boucher-Hoese, Prchal, Briggs and Marco. The motion carried 4-0. The meeting adjourned at 5:35 p.m. Submitted by Megan Kooiman 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: October 14, 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 September 30, 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 September 30, 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: October 14, 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 September 30, 2024. Single Family Dwellings 46 $23,040,690.00 59 $25,944,704.00 Townhouses (# units)4 $672,000.00 0 $0.00 Multiple Units 1 $28,733,056.00 1 $1,800,000.00 New Commercial Industrial & Commercial 3 $3,975,000.00 3 $5,844,460.00 Residential 762 $20,015,206.57 841 $15,197,776.80 Industrial & Commercial 19 $4,518,546.00 17 $1,116,739.00 tMechanical 740 $0.00 701 $0.00 ttMechanical (SF & TH)200 $0.00 236 $0.00 TOTALS 1,775 $80,954,498.57 1,858 $49,903,679.80 62.22% -31.99% 31.70% 304.62% n/a n/a 2024 Year to Date 2023 Year to Date New Residential 5.56% -15.25% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -11.19% 100.00% 1496.28% 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 -22.03% 100.00% 0.00% 0.00% -9.39% 11.76% Number of Permits Declared Value -4.47% 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: October 14, 2024 AGENDA #: 8A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Dakota Street Preliminary Development Agreement Extension DISCUSSION: Introduction The purpose of this agenda item is to consider extending the Predevelopment Agreement with The Beard Group. History On October 18, 2021, the EDA, City of Prior Lake, and The Beard Group en- tered into a Preliminary Development Agreement which identified steps and obligations related to necessary approvals for The Beard Group to construct a new building on EDA and City owned property at 4662, 4664, and 4666 Dakota Street SE. The parties have twice extended the expiration date of the prelimi- nary development agreement. Current Circumstances Representatives of The Beard Group attended the August EDA meeting to pro- vide an update on the Cora Apartment project, stating entitlements are 95% complete, providing an overview of the construction bids and current interest rates. and discussed increased costs due to material, labor and interest rates. The Preliminary Development Agreement designates The Beard Group as the Sole Developer of the property during the term of the agreement. The EDA and City are not to market the property or make, acceopt, negotiate, or otherwise pursue any other offers for sale or purchase until agreement expiration. Due to the substantial investment The Beard Group has made in this project to date, they requested an extension of the preliminary development agreement. Commissioners discussed an appropriate extension term and supported an ex- tension to March 31, 2025. Commissioners directed staff to prepare an amend- ment to extend the predevelopment agreement term and invite the Beard Group back to an EDA meeting in February to receive another update after more is known about interest rates and construction costs. Conclusion Attached is an amendment to the Preliminary Development Agreement modi- fying the effective date from August 31, 2024 to March 31, 2025. All other terms and conditions of the Preliminary Development Agreement, dated October 18, 2021, remain in effect. 2 ALTERNATIVES: 1. Motion and a second authorizing the Executive Director to execute the Third Amendment to the Preliminary Development Agreement. 2. Provice direction to staff and continue discussion at a future meeting. RECOMMENDED MOTION: Alternative No. 1 ATTACHMENT: 1. Third Amendment to the Preliminary Development Agreement 2. Preliminary Development Agreement