Loading...
HomeMy WebLinkAbout05 11 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, May 11, 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 / March 9, 2026 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. March 16, 2026 4. CONSENT AGENDA A. Monthly Development Update (4/30/2026) 5. REMOVED CONSENT AGENDA ITEMS 6. OLD BUSINESS A. None 7. NEW BUSINESS A. Downtown Parking Study Proposal Discussion B. Colorado Street Demolition C. City of Prior Lake to EDA Property Transfers 8. OTHER BUSINESS A. Staff Updates i. Parking Lot Appraisal ii. Downtown Property Tour B. Commissioner Comments 9. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Originally scheduled for Monday, March 9, 2026 4:00 p.m. (postponed) Meeting held on March 16th, 4:00 p.m. 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, and Boucher-Hoese. Absent: Braid. Also, present were Executive Director Wedel, Community Development Director McCabe, and Deputy Clerk / Administrative Assistant Kooiman. 2. APPROVAL OF AGENDA MOTION BY LAKE, SECONDED BY BOUCHER-HOESE TO APPROVE THE AGENDA Ayes by Prchal, Boucher-Hoese, Lake and Marco. That motion carried 4-0. 3. APPROVAL OF MEETING MINUTES MOTION BY MARCO, SECONDED BY LAKE TO APPROVE THE JANUARY 12, 2026, MEETING MINUTES. Ayes by Prchal, Boucher-Hoese, Lake and Marco. That motion carried 4-0. 4. CONSENT AGENDA A. Monthly Development Update (2/28/2026) MOTION BY MARCO, SECONDED BY BOUCHER-HOESE TO APPROVE THE CONSENT AGENDA. Ayes by Prchal, Boucher-Hoese, Lake and Marco. That motion carried 4-0. 5. Removed Consent Agenda Items 6. Old Business A. None. 7. NEW BUSINESS A. Consider Fast-Track Business Challenge Sponsorship Community Development Director McCabe: gave a brief presentation on the request from the Scott County CDA for sponsorship of the 10th annual Fast-Track Challenge. Commissioner discussed sponsorship level and agreed to stay at the bronze level sponsorship as in previous years provided the funds are used to support marketing or some other event function and not used as a cash award to one of the event winners. MOTION BY BOUCHER-HOESE, SECONDED BY MARCO TO APPROVE A RESOLUTION 26-01 APPROVING FAST – TRACK SPONSORSHIP AND AUTHORIZING THE EDA EXECUTIVE DIRECTOR TO EXECUTE THE SPONSORSHIP AGREEMENT. Ayes by Prchal, Boucher-Hoese, Lake and Marco. That motion carried 4-0. 4646 Dakota Street SE Prior Lake, MN 55372 B. Colorado Street Demolition and Parking Community Development Director McCabe: Provided a summary of work completed by staff following discussion on the potential removal of one or both homes owned by the EDA on Colorado Street. McCabe presented a proposal and estimated costs for one of the homes to be removed and replaced with a surface parking lot which would allow the EDA and City of Prior Lake to utilize redevelopment tax increment financing in the future, if desired. Commissioners discussed cost estimates and where funds would be provided from. Commissioners ultimately did not support removing one home and constructing a surface parking lot due to the cost, temporary nature of the parking, and low return on investment. Commissioners recommended staff research other options to identify more permanent parking in the downtown are to better utilize available funds. 8. OTHER BUSINESS A. Staff Updates B. Commissioner’s Comments Commissioners recommended staff pursue an updated downtown parking study to analyze existing parking demand and future parking options once Chula’s restaurant is operational. 9. ADJOURNMENT MOTION BY LAKE, SECONDED BY BOUCHER-HOESE TO AJOURNED THE MEETING. Ayes by Prchal, Boucher-Hoese, Lake and Marco. That motion carried 4-0. The meeting adjourned at 4:57 p.m. Submitted by Megan Kooiman. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: May 11, 2026 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 monthly residential and com- mercial development update as of April 30, 2026. 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 April 30, 2026. 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: May 11, 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 residential and commercial development in the City of Prior Lake as of April 30, 2026. Single Family Dwellings 8 $3,542,003.00 13 $6,101,838.00 Townhouses (# units)0 $0.00 0 $0.00 Multiple Units 2 $23,500,000.00 1 $5,500,000.00 New Commercial Industrial & Commercial 1 $3,000,000.00 1 $3,152,500.00 Residential 224 $5,014,660.68 285 $6,254,855.17 Industrial & Commercial 8 $570,545.00 14 $2,337,293.00 tMechanical 316 $0.00 322 $0.00 ttMechanical (SF & TH)32 $0.00 52 $0.00 TOTALS 591 $35,627,208.68 688 $23,346,486.17 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 -38.46% 100.00% 100.00% 0.00% -21.40% -42.86% Number of Permits Declared Value -14.10% 2026 Year to Date 2025 Year to Date New Residential -1.86% -38.46% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -41.95% 100.00% 327.27% 52.60% -4.84% -19.83% -75.59% n/a n/a 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: May 11, 2026 AGENDA #: 7A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Downtown Parking Study Proposal Discussion DISCUSSION: Introduction A vibrant downtown is an asset to any community and Prior Lake is fortunate to have a thriving downtown. Downtown Prior Lake provides opportunities for social gatherings, a hub of retail, office and restaurants, consolidated public services and residential uses. Prior Lake’s downtown parking experiences heavy demand on occasions. This occasional ‘peak’ demand sparks the question - is there a need for additional parking or a new parking facility/structure; if so, where are the appropriate loca- tions and what is the plan to get there? During the March meeting, EDA commissioners expressed a desire to have a downtown parking study completed during the spring/summer of 2026. The pur- pose of this agenda item is to discuss the content the EDA would like the parking study to include. History The City of Prior Lake has completed downtown parking studies in the past. In 2004 the city hired Bonestroo, Rosene, Anderlik & Associates to complete a downtown parking study. The Bonestroo study was updated by city staff in 2012. Another downtown parking study was completed by SRF in 2015. None of the previous studies identified a glaring need for additional parking spaces at the time but acknowledged parking may become more challenging as additional de- velopment occurs. The previous studies did identify opportunities that were im- plemented by the city and resulted in additional on-street parking stalls being added throughout the downtown and the installation of municipal parking lot signage to clearly identify public parking stalls. Current Circumstances Prior Lake is in the fortunate position of having a vibrant downtown with a very low vacancy rate. The downtown area has welcomed several new businesses since the last parking study was completed; both in new construction and rede- velopment of existing buildings from uses that generated little pedestrian and vehicular traffic to much more intense uses. Based on the recent private invest- ment in the downtown area, staff agrees with the EDA that this is an appropriate time to revisit downtown parking. Conclusion Staff is requesting EDA direction related to the content of the parking study. The study could be as simple as completing a public and private parking stall inven- tory and conducting a demand analysis, or the study could be more complex. 2 Staff would welcome suggestions from the EDA, but would recommend the study include; • Existing parking supply inventory (public and private; on- and off-street) • Parking utilization survey (of public and private stalls, including week- ends and evenings) • Identify existing parking needs • Identity future parking needs (short-, mid- and long-term based on devel- opment and redevelopment assumptions) • Low-cost recommendations for increasing or better utilizing parking • Higher investment recommendations to increase or better utilize parking (parking structures or surface lots; type and location) • Cost estimate to implement low-cost and higher investment options • Potential funding sources to address identified parking needs • Implementation plan Based on the direction provided from the EDA, staff will draft a request for pro- posals for a downtown parking study to be completed by an organization in the city’s consultant pool. ALTERNATIVES: Provide direction to staff related to a downtown parking study. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: May 11, 2026 AGENDA #: 7B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Colorado Street Demolition DISCUSSION: Introduction The purpose of this agenda item is to provide direction to staff related to the potential demolition of an EDA-owned home at 4556 Colorado Street SE. History The EDA acquired the property at 4556 Colorado Street in March 2024 for the pur- pose of facilitating a future downtown redevelopment project. The property has been vacant for the past two years. The EDA previously discussed the significant invest- ment required to bring the home to a rentable condition and determined that level of investment was not worthwhile given the uncertain timing of a future redevelopment project. Earlier this year the EDA discussed a potential option to remove the home and place a temporary surface parking lot on the property and the adjacent city-owned vacant lot. That proposal was not supported due to the significant investment and only tem- porary nature of the parking lot. The EDA instead supported utilizing available re- sources to explore other public parking opportunities in the downtown area. Previous discussions around demolition of one or both EDA-owned properties on Colorado Street have centered around maintaining the city’s ability to pursue a re- development tax increment financing (TIF) district in the future. In order to qualify for redevelopment TIF under the blight test, 70% of the parcels in the district must be occupied; more than 50% of the buildings must be structurally substandard; and 15% of the area of the district contain buildings, streets, utilities, paved or gravel parking lots, or similar structures. In order to preserve the redevelopment TIF option, neither EDA owned property can be cleared. Current Circumstances During the May 11th meeting, staff will propose one more scenario for EDA consid- eration, which should preserve the redevelopment TIF option, where the home at 4556 Colorado Street would be removed but the detached garage and driveway would remain as a public service structure for use by the city’s public works depart- ment; primarily for downtown salt storage and snow removal purposes. Conclusion Based upon EDA direction and prior to any formal action, staff would confirm this approach would preserve the city’s ability to pursue a redevelopment TIF district with the city’s financial consultant. This option would also require an amendment to the city code to allow Public Service Structures as a permitted use in the TC-T, Transi- tional Town Center district. ALTERNATIVES: Provide direction to staff related to exploring removal of the single-family home at 4556 Colorado Street SE. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: May 11, 2026 AGENDA #: 7C PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: City of Prior Lake to EDA Property Transfers DISCUSSION: Introduction The purpose of this agenda item is to consider an EDA request to the Prior Lake City Council to transfer downtown properties from the City of Prior Lake to the Prior Lake EDA. History Following the sale of the 4662 and 4664 Dakota Street SE properties for the Cora Apartment redevelopment project, the EDA now owns three downtown properties. • 4528 Colorado Street SE • 4556 Colorado Street SE • 16298 Main Avenue SE The Prior Lake City Council has previously transferred several city-owned parcels to the EDA to facilitate downtown redevelopment projects, including: • 4664 Dakota Street SE • 4666 Dakota Street SE • The north 100 ft. of what became 4662 & 4664 Dakota Street SE Current Circumstances The City of Prior Lake owns the following parcels in the downtown area that the EDA may want to consider requesting be transferred from the city to the EDA. • No address – PIDs 250020080, 250020060 & 250020102 – surface parking lot south of the VFW at the intersection of Main/Pleasant • 4635 Colorado St. SE – PID 250011100 – Colorado Street surface parking lot • 4577 Colorado St. SE – PID 250011140 – vacant lot south of Colorado/Arcadia intersection • 16220 Main Ave. SE – PID 250010300 – Lakeside Eats and Treats building • No address – PID 250010410 – surface parking lot south of Dakota St. behind Edelweiss Bakery • 4570 Colorado St. SE – PID 250011220 – vacant lot west of Arcadia Ave. • 4590 Colorado St. SE – PID 250011040 – vacant lot east of Arcadia Ave. Discussion at the May 11th meeting will include rental revenue, property tax obliga- tions, redevelopment potential, potential maintenance costs, timing of a request for property transfer and other topics as suggested by the EDA. Conclusion Based upon the direction provided by the EDA, staff can draft a resolution for EDA consideration and approval requesting the transfer of parcels from the City of Prior Lake to the Prior Lake EDA. ALTERNATIVES: Provide direction to staff related to a request for the City Council to transfer down- town city-owned properties to the EDA.