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Home My WebLink About01 12 2026 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, January 12, 2026 – 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 / 2026 / January 12, 2026 1. CALL TO ORDER 2. ELECTION OF OFFICERS 3. APPROVAL OF AGENDA 4. APPROVAL OF MEETING MINUTES A. November 10, 2025 5. CONSENT AGENDA A. Year-End Development Update (12/31/2025) B. Year-End EDA Revenue & Expenditure Report (12/31/2025) 6. REMOVED CONSENT AGENDA ITEMS 7. OLD BUSINESS A. None 8. NEW BUSINESS A. Commercial Property Rezoning Request B. Dakota Street Property Sale Update 9. OTHER BUSINESS A. Staff Updates B. Commissioner Comments 10. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Monday, November 10, 2025 Parkview Conference Room 1. CALL TO ORDER Chair Prchal called the meeting to order at 4:02 p.m. In attendance were Prchal, Lake, Marco, Braid, and Boucher-Hoese. Absent: None. Also, present were Executive Director Wedel, Community Development Director McCabe, and Development Services Assistant Peppin. 2. APPROVAL OF AGENDA MOTION BY LAKE, SECONDED BY BOUCHER-HOESE TO APPROVE THE AGENDA Ayes by Prchal, Braid, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRAID, SECONDED BY MARCO TO APPROVE THE SEPTEMBER 8, 2025, MEETING MINUTES. Ayes by Prchal, Braid, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. 4. CONSENT AGENDA A. Monthly Development Update (10/31/25) MOTION BY LAKE, SECONDED BY MARCO TO APPROVE THE CONSENT AGENDA. Ayes by Prchal, Braid, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. 5. OLD BUSINESS A. EDA-Owned Colorado St. Property Discussion. McCabe: stated the two EDA-owned properties on Colorado Street are in poor condition, commented on the EDA’s previous discussion about removing the homes and the potential impact to utilizing redevelopment TIF as a funding mechanism for a future project. McCabe stated staff researched the topic and it does not appear the homes could be removed while maintaining the option for redevelopment TIF in the future. McCabe suggested a few alternatives for consideration including, i) keeping the homes as-is; ii) removing one or both homes and forfeiting the ability for redevelopment TIF in the future; or iii) removing the eastern home, combining that lot with the vacant city-owned lot and constructing a temporary surface parking lot, which would qualify as an occupied parcel and maintain the ability for TIF in the future. Commissioners: discussed different options with the lots/houses on Colorado Street and options regarding TIF, lot prices, and EDA controlled parcels. Ideas for a temporary parking lot led to discussion including city costs, minimum requirements related to curb & gutter and stormwater rules, number of parking stalls, and the local businesses’ need for parking. Outcome of discussion suggested doing additional research on the parking lot option. 4646 Dakota Street SE Prior Lake, MN 55372 6. NEW BUSINESS A. Resolution Approving Amendments to a Contract for Private Development with Prior Lake B Squared Ventures, LLC. McCabe: provided an update on the Contract for Private Development stating the EDA held a public hearing previously and approved the Contract. Since that time, the original developer identified two new development companies that will be taking over the project and constructing/managing the property. The attorney for the new development team requested a few revisions to the contract, which requires EDA approval. McCabe presented the amended contract and informed the EDA that the City Attorney has reviewed the agreement and detailed a few minor revisions recommended by the City Attorney. Commissioners: discussed the acquisition cost, closing dates, earnest money, and title commitment. Commissioners supported the amended agreement with the revisions recommended by the City Attorney. MOTION BY BOUCHER-HOESE, SECOND BY LAKE TO APPROVE A RESOLTION AUTHORIZING THE EDA PRESIDENT AN EXECUTIVE DIRECTOR TO ENTER INTO AN AMENDED CONTRACT FOR PRIVATE DEVELOPMENT THAT SUBSTANTIALLY CONFORMS WITH THE CURRENT AGREEMENT, SUBJECT TO THE APPROVAL OF THE CITY ATTORNEY, WITH PRIOR LAKE B SQUARED VENTURES, LLC FOR THE SALE OF EDA-OWNED PROPERTY AT 4662 AND 4664 DAKOTA STREET SE. Ayes by Prchal, Marco, Boucher-Hoese, Braid and Lake. That motion carried 5-0. 7. OTHER BUSINESS A. Staff Updates i. Cora Apartments Final Plat/Final PUD Update McCabe: mentioned the updated final plat/final PUD for the Cora Apartment project is going to City Council on November 12th. McCabe stated the developer has indicated they hope to close on the purchase prior to the end of the year and start construction in early 2026. B. Commissioner’s Comments: i. Sebatian Auto Mention was made regarding an accident involving the owner of Sebatian Automotive who leases an EDA-owned property on Main Avenue. Commissioner Prchal offered to visit the property and let the business know to contact city staff if the EDA can be of assistance. ii. Future meeting dates were discussed. Commissioners supported cancelling the December meeting unless there are items that require discussion or approvals related to the Cora Apartment project. 8. ADJOURNMENT MOTION BY MARCO, SECOND BY LAKE TO ADJOURN THE MEETING. Ayes by Prchal, Marco, Boucher-Hoese, Braid and Lake. That motion carried 5-0. The meeting adjourned at 4:50 p.m. Submitted by Sandra Peppin 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 12, 2026 AGENDA #: 2 PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Election of Officers DISCUSSION: Introduction Article 5.1 of the EDA Bylaws state 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. History The 2025 elected EDA officers were: Kim Prchal as President; Marie Boucher- Hoese as Vice-President; Cathy Erickson [Nicole Kleckner] as Treasurer; Jason Wedel as Secretary; and Casey McCabe as Assistant Treasurer. Current Circumstances All EDA Commissioners are eligible to become officers for 2026. 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 2026 EDA President, Vice-President, Treasurer, Secretary and Assistant Treasurer should be elected by the EDA Commissioners on January 12th. FINANCIAL IMPACT: None ALTERNATIVES: 1. Motion(s) and second(s) to elect EDA officers for 2026. 2. Table the election to a future EDA meeting. RECOMMENDED MOTION: Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 12, 2026 AGENDA #: 5A 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, 2025. 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 December 31, 2025. 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 12, 2026 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-end residential and commercial development in the City of Prior Lake as of December 31, 2025. Name Address Type (New Const. or Add/Alt) Previous Tenant/Owner New C/I Sq. Ft. Status Permit Valuation Chula's Restaurant Building*4636 Colorado St. New Construction T-Shirts & More 6,672 Issued $2,688,732 Valvoline Oil Change 4120 Village Lake Dr. SE New Construction Vacant 2,673 Issued $1,633,866 Park Place Storage Phase III 6010 170th St. E.New Construction Vacant 48,500 Issued $3,152,500 YT's Garage Bar 16309 Main Ave. SE Add/Alt Dingman's Auto 0 Issued $20,000 Spot's Last Stop 6025 170th St. E.Add/Alt Landscape Co.0 Issued $337,768 Prior Lake Dental 14093 Commerce Ave. NE Add/Alt Multi-Tenant 0 Issued $1,000,000 TOTAL 57,845 $8,832,866 *9,528 SF - 2,852 SF (existing) = 6,676 New Commercial SF 2025 Prior Lake Commercial Activity Single Family Dwellings 29 $19,383,564.00 51 $28,258,327.00 Townhouses (# units)4 $672,000.00 4 $672,000.00 Multiple Units 1 $5,500,000.00 1 $28,733,056.00 New Commercial Industrial & Commercial 3 $7,475,098.00 5 $9,831,600.00 Residential 845 $17,648,906.28 936 $23,334,694.48 Industrial & Commercial 32 $5,426,247.00 26 $5,110,446.00 tMechanical 1136 $0.00 996 $0.00 ttMechanical (SF & TH)132 $0.00 220 $0.00 TOTALS 2,182 $56,105,815.28 2,239 $95,940,123.48 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 -43.14% 0.00% 0.00% -40.00% -9.72% 23.08% Number of Permits Declared Value -2.55% 2025 Year to Date 2024 Year to Date New Residential 14.06% -40.00% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -31.41% 0.00% -80.86% -41.52% -23.97% -24.37% 6.18% n/a n/a 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 12, 2026 AGENDA #: 5B 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 2025 year-end EDA Revenue & Expenditure Report. Current Circumstances As of January 6, 2026, Total 2025 EDA revenues were $455,873 (103.75% of budget). The primary source of revenue was the property tax levy ($376,300). Additional revenues included, but were not limited to, $26,988 for rental of EDA-owned property and $17,453 in interest earnings. As of January 6, 2026, Total 2025 EDA expenditures were $166,263 (22.9% of budget). 2025 EDA expenditures primarily relate to staff wages and benefits as anticipated and budgeted. Additional ex- penditures include, but are not limited to, utility and maintenance costs for EDA-owned properties. The primary reasons expenditures are less than anticipated were the EDA did not expend $385,000 budg- eted for property acquisition in 2025 and the portion of Professional Services – General expenditures which were budgeted to assist with the AUAR cost have not been expended to date. ISSUES: There will be additional year-end adjustments paid in January that will be posted back to the period ending December 31, 2025. 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:01/06/2026 12:59 PM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2025 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2025 YTD BALANCE 12/31/2025 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Revenues Dept 00000.00 - GENERAL 98.38 6,205.76 179,514.93 376,300.24 382,506.00 Current Property Taxes - General Purpos240-00000.00-31010.00 118.14 (4,080.65)12,362.30 26,574.65 22,494.00 Fiscal Disparities240-00000.00-31040.00 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 Charges240-00000.00-34111.00 178.10 (7,653.43)0.00 17,453.43 9,800.00 Interest Earnings240-00000.00-36210.00 100.00 (8,557.05)0.00 8,557.05 0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00 0.00 0.00 0.00 0.00 0.00 Contributions & Donations240-00000.00-36230.00 0.00 0.00 0.00 0.00 0.00 Contribution (Other Fund)240-00000.00-37901.00 0.00 0.00 0.00 0.00 0.00 Transfer from Other Funds240-00000.00-39203.00 103.40 (14,085.37)191,877.23 428,885.37 414,800.00 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 EDA240-46500.00-33610.14 109.76 (2,400.00)0.00 26,988.00 24,588.00 Facility Rental - EDA240-46500.00-34760.02 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 Realized Inv Gain/(Loss)240-46500.00-36226.00 109.76 (2,400.00)0.00 26,988.00 24,588.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT Dept 46503.00 - TECH VILLAGE INCUBATOR 0.00 0.00 0.00 0.00 0.00 Facility Rental - EDA240-46503.00-34760.02 0.00 0.00 0.00 0.00 0.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 103.75 (16,485.37)191,877.23 455,873.37 439,388.00 TOTAL REVENUES Expenditures Dept 46500.00 - ECONOMIC DEVELOPMENT 87.64 15,835.86 10,078.14 112,318.14 128,154.00 Wages - Full Time240-46500.00-51100.01 58.33 1,250.00 250.00 1,750.00 3,000.00 Wages - Commissioners240-46500.00-51100.05 0.00 0.00 0.00 0.00 0.00 Overtime - Full Time240-46500.00-51110.01 0.00 1,331.00 0.00 0.00 1,331.00 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 87.67 118.50 75.59 842.50 961.00 Compensated Absences240-46500.00-51400.00 85.23 1,213.32 632.19 7,000.68 8,214.00 Social Security Contributions240-46500.00-51450.00 85.24 283.49 147.86 1,637.51 1,921.00 Medicare Contributions240-46500.00-51451.00 87.10 1,248.03 755.85 8,423.97 9,672.00 PERA Contributions240-46500.00-51460.00 0.00 0.00 0.00 0.00 0.00 MN Paid Leave Contributions240-46500.00-51463.00 74.54 3,319.87 954.99 9,718.13 13,038.00 Health Insurance240-46500.00-51470.00 78.39 77.80 23.77 282.20 360.00 Retiree HCSP Contributions240-46500.00-51472.00 78.90 103.17 37.96 385.83 489.00 Dental Insurance240-46500.00-51473.00 85.56 9.82 5.72 58.18 68.00 Life Insurance240-46500.00-51474.00 33.02 455.46 0.00 224.54 680.00 Workers Compensation Insurance240-46500.00-51477.00 0.00 0.00 0.00 0.00 0.00 Office Supplies240-46500.00-52010.00 0.00 1,000.00 0.00 0.00 1,000.00 Legal Services240-46500.00-53020.00 9.17 136,250.56 269.39 13,749.44 150,000.00 Professional Services - General240-46500.00-53100.80 0.00 0.00 0.00 0.00 0.00 Telecommunications240-46500.00-53210.00 0.00 500.00 0.00 0.00 500.00 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 1,500.00 0.00 0.00 1,500.00 Maint Agreements Misc Bldg & Structures240-46500.00-54010.51 REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page:01/06/2026 12:59 PM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2025 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2025 YTD BALANCE 12/31/2025 2025 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Expenditures 0.00 250.00 0.00 0.00 250.00 Memberships and Subscriptions240-46500.00-54310.00 52.79 8,827.76 0.00 9,872.24 18,700.00 Miscellaneous Expense240-46500.00-54320.00 0.00 385,000.00 0.00 0.00 385,000.00 Projects - Property & ROW Acquisit'n240-46500.00-55040.00 0.00 0.00 0.00 0.00 0.00 Projects - Professional Services240-46500.00-55050.00 22.94 558,574.64 13,231.46 166,263.36 724,838.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT Dept 46503.00 - TECH VILLAGE INCUBATOR 0.00 0.00 0.00 0.00 0.00 Office Supplies240-46503.00-52010.00 0.00 0.00 0.00 0.00 0.00 Small Equipment - General240-46503.00-52400.10 0.00 0.00 0.00 0.00 0.00 Legal Services240-46503.00-53020.00 0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60 0.00 0.00 0.00 0.00 0.00 Telecommunications240-46503.00-53210.00 0.00 0.00 0.00 0.00 0.00 Rent Subsidies240-46503.00-54095.00 0.00 0.00 0.00 0.00 0.00 Business Assistance240-46503.00-54100.00 0.00 0.00 0.00 0.00 0.00 Memberships and Subscriptions240-46503.00-54310.00 0.00 0.00 0.00 0.00 0.00 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 0.00 0.00 0.00 0.00 0.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 22.94 558,574.64 13,231.46 166,263.36 724,838.00 TOTAL EXPENDITURES 101.46 (575,060.01)178,645.77 289,610.01 (285,450.00)NET OF REVENUES & EXPENDITURES 22.94 558,574.64 13,231.46 166,263.36 724,838.00 TOTAL EXPENDITURES 103.75 (16,485.37)191,877.23 455,873.37 439,388.00 TOTAL REVENUES Fund 240 - EDA SPECIAL REVENUE FUND: 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: January 12, 2026 AGENDA #: 8A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Commercial Property Rezoning Request DISCUSSION: Introduction The purpose of this agenda item is to allow for EDA discussion and direction to staff related to a possible rezoning request. Current Circumstances The current Prior Lake-Savage School District office at 4540 Tower Street SE is being marketed for sale as the school district plans to relocate their district office to another location in 2026. Staff has been contacted by a multi-family residential development company exploring the potential redevelop- ment of the District Office site, which would also include development of the adjacent vacant commer- cial property to the west. The current school district office property is zoned R-3, High Density Residential and guided for high density residential development on the City of Prior Lake 2040 Land Use Plan. The vacant parcels to the west are zoned C-2, General Business and guided for retail/general business on the Land Use Plan. Discussions to this point have been preliminary; however, the developer indicated if they proceed, they are likely to request rezoning of the general commercial parcels to high density residential to support a market rate apartment project. ISSUES: The City of Prior Lake has not rezoned commercial property for residential purposes in many years and the city council, EDA, and planning commission have consistently prioritized the preservation of commercial/industrial (C/I) property to support future development opportunities as the city’s existing supply of shovel ready commercial property is very low. The City of Prior Lake’s adopted 2023-2026 Strategic Plan identifies no net loss of commercial/industrial property as a target to ensure an adequate supply of C/I land as part of the Well Managed Growth strategic priority. That said, this potential re- quest is more complex than previous ones as roughly one-half of the proposed redevelopment site is guided for high-density residential development, there is existing high-density housing in the immedi- ate area, and the property is not located along a prime commercial corridor. Staff would welcome EDA discussion and direction on this topic to help guide conversations with the developer around the City’s willingness to consider a potential rezoning request. ALTERNATIVES: 1. Discussion only. ATTACHMENTS: 1. General Location Map 2. Current Zoning 2 General Location Current Zoning C-2, Gen. Business R-1, LDR R-3 HDR R-3 C-2 R-2, MDR 2.66 a 1.99 a .93 a