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HomeMy WebLinkAbout09 14 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, September 14, 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 / September 14, 2026 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. July 13, 2026 4. CONSENT AGENDA A. Monthly Development Update (8/31/2026) B. Resolution Appointing an Arts & Culture Committee Member 5. REMOVED CONSENT AGENDA ITEMS 6. OLD BUSINESS A. Resolution Approving Request for 2027 EDA Budget and Tax Levy 7. NEW BUSINESS A. Downtown Parking Study RFP Responses B. EDA Commission Size Discussion C. Downtown Nonconforming Property Review 8. OTHER BUSINESS A. Staff Updates i. Downtown Parking Lots ii. EDA Property Lease Status B. Commissioner Comments 9. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES July 13th, 2026 Parkview Conference Room 1. CALL TO ORDER Vice Chair Boucher-Hoese called the meeting to order at 4:08 p.m. In attendance were Lake, Braid and Boucher-Hoese. Absent: Prchal and Marco. 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 BRAID TO APPROVE THE AGENDA Ayes by Boucher-Hoese, Braid, and Lake. That motion carried 3-0. 3. APPROVAL OF MEETING MINUTES MOTION BY LAKE, SECONDED BY BOUCHER-HOESE TO APPROVE THE MAY 11, 2026, MEETING MINUTES. Ayes by Boucher-Hoese, and Lake. Braid Abstained That motion carried 2-0-1. 4. CONSENT AGENDA A. Monthly Development Update (6/30/2026) MOTION BY BRAID, SECONDED BY LAKE TO APPROVE THE CONSENT AGENDA. Ayes by Boucher-Hoese, Braid, and Lake. That motion carried 3-0. 5. Removed Consent Agenda Items None 6. Old Business A. Downtown Parking Study RFP Community Development Director McCabe presented the draft Request for Proposals for a downtown parking study and requested the EDA to provide comments on any revisions they would like prior to the RFP being distributed. Commissioners asked several questions about the parking study and authorized staff to distribute the RFP. Responses received will be brought back to the EDA for consideration and approval prior to awarding a contract. B. City of Prior Lake to EDA Property Transfer Request Community Development Director McCabe reviewed several parcels in the downtown area that are currently owned by the City of Prior Lake. McCabe stated the city council appears open to considering the transfer of ownership of several downtown properties from the City to the EDA. Commissioners discussed potential EDA ownership of several parcels, possible property tax and maintenance costs as well as likely rental revenues. 4646 Dakota Street SE Prior Lake, MN 55372 MOTION BY BRAID, SECONDED BY LAKE TO APPROVE A REQUEST FOR THE CITY COUNCIL TO TRANSFER OWNERSHIP OF NINE PARCELS IDENTIFIED IN THE STAFF REPORT TO THE EDA FOR FUTURE ECONOMIC REDEVELOPMENT PURPOSES. Ayes by Boucher-Hoese, Braid, and Lake. That motion carried 3-0. 7. NEW BUSINESS A. Arts & Culture Committee (ACC) Strategic Plan Approval & Resolution Approving ACC Funding Request Community Development Director McCabe: provided an overview of the updates to the ACC Strategic Plan, strategic priorities identified by the ACC and projects they are proposing to complete in the future, and an overview of the ACC’s funding request of the EDA to support these initiatives. Commissioners: Discussed the good work being done by the ACC, the projects which have been completed that are valued by the community and expressed support of the funding request. MOTION BY LAKE, SECONDED BY BRAID TO APPROVE THE ARTS AND CULTURE COMMITTEE 2026-2030 STRATGIC PLAN AND AUTHORIZE THE ALLOCATION OF $20,000 FROM THE EDA 2026 PROFESSIONAL SERVICES TO SUPPORT ACC INITIATIVES. Ayes by Boucher-Hoese, Braid, and Lake. That motion carried 3-0 B. Proposed 2027 EDA Tax Levy and Budget Review Community Development Director McCabe: provided an overview of a proposed 2027 EDA budget and levy request. Commission members provided comments and direction to staff related to the 2027 EDA budget and levy request and directed staff to make revisions and bring the item back to a future EDA meeting for consideration of a resolution requesting city council approval of the budget and levy request. 8. OTHER BUSINESS A. Staff Updates i. Parking Lot Appraisal – Community Development Director McCabe: Informed commissioners that they have yet to meet with the VFW to discuss the downtown parking lots. The city and VFW-owned lots were appraised and the appraisal report has been provided to the VFW. ii. Prior Lake Revival II – McCabe informed the EDA that construction on the Prior Lake Revival phase II building is expected to begin soon. iii. Colorado Street Property Demolition – McCabe informed the EDA that staff is working on a RFP to request proposals for demolition of an EDA-owned home and detached garage at 4556 Colorado Street. B. Commissioner’s Comments None. 9. ADJOURNMENT MOTION BY BRAID, SECONDED BY LAKE TO AJOURNED THE MEETING. Ayes by Boucher-Hoese, Braid, and Lake That motion carried 3-0. The meeting adjourned at 4:49 p.m. Submitted by Megan Kooiman. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 14, 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 August 31, 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 August 31, 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: September 14, 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 August 31, 2026. Name Address Type (New Const. or Add/Alt) Previous Tenant/Owner New C/I Sq. Ft. Status Lightbridge Academy 3830 Fountain Hills Drive New Construction Vacant 11,160 Issued Dunkin' / Baskin Robbins 5020 160th St. E.Alteration Burger King 0 Completed Cora Apartment Restaurant/Rooftop 4662 Dakota St. SE New Construction SF Homes 2,905 Issued Prior Lake Revival II 16220 Duluth Ave. SE New Construction Vacant 10,910 Issued SDDI Signs 17125 Adelmann St. Addition SDDI Signs 9,200 Issued 2026 Prior Lake Commercial Activity Single Family Dwellings 24 $13,714,009.00 20 $10,552,523.00 Townhouses (# units)0 $0.00 4 $672,000.00 Multiple Units 2 $23,500,000.00 1 $5,500,000.00 New Commercial Industrial & Commercial 3 $5,410,000.00 3 $7,475,098.00 Residential 556 $11,295,753.05 608 $12,088,699.51 Industrial & Commercial 34 $13,340,018.00 23 $3,476,968.00 tMechanical 789 $0.00 782 $0.00 ttMechanical (SF & TH)96 $0.00 96 $0.00 TOTALS 1,504 $67,259,780.05 1,537 $39,765,288.51 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 20.00% -100.00% 100.00% 0.00% -8.55% 47.83% Number of Permits Declared Value -2.15% 2026 Year to Date 2025 Year to Date New Residential 0.90% 0.00% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease 29.96% -100.00% 327.27% 69.14% -27.63% -6.56% 283.67% n/a n/a 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 14, 2026 AGENDA #: 4B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Resolution Appointing an Arts and Culture Committee Member DISCUSSION: Introduction The purpose of this agenda item is to approve a resolution reappointing Cas- sandra Bryant to the Arts and Culture Committee (ACC). Background ACC member Cassandra Bryant was appointed to the Committee on November 1, 2021, initially serving a two-year term through October 31, 2023 and then being reappointed to a second term from November 1, 2023 through October 31, 2026. Members of the ACC serve three-year overlapping terms and are term limited to three terms, or nine years. Current Circumstances The ACC Bylaws state, if a Committee member reaches the end of a term and is eligible for reappointment, the Committee member appointed by the EDA and the Committee Chair shall determine if eligible incumbents shall be put forward for reappointment or if the vacancy shall be opened for public application. Ms. Bryant has indicated interest in serving a third term on the Arts and Culture Committee. Conclusion The ACC member appointed by the EDA and the Committee Chair, as well as the staff liaison to the committee, are recommending the reappointment of Ms. Bryant. The ACC has additional vacancies as of October 31, 2026. City staff are follow- ing the process outlined in the ACC Bylaws to fill the remaining vacancies. ALTERNATIVES: RECOMMENDED MOTION 1. Motion and second, as part of the consent agenda, approving a resolution appointing Cassandra Bryan to serve on the Arts and Culture Committee. 2. Remove this item from the Consent Agenda for additional discussion. Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-02 EDA A RESOLUTION APPOINTING CASSANDRA BRYANT TO THE ARTS AND CULTURE COMMITTEE Motion By: Second By: WHEREAS, As of October 31, 2026 the current term of the City of Prior Lake Arts and Culture Committee (ACC) member Cassandra Bryant will expire; and WHEREAS, Ms. Bryant has served a two-year term and a three-year term on the ACC and is eligible for reappointment to a third three-year term; and WHEREAS, The ACC Bylaws state, if a Committee member reaches the end of a term and is eligible for reappointment, the Committee member appointed by the EDA and the Committee Chair shall determine if eligible incumbents shall be put forward for reappointment or if the vacancy shall be opened for public application; and WHEREAS, Ms. Bryant has indicated interest to serve a second three-year term on the ACC; and WHEREAS, The ACC member appointed by the EDA and the Committee Chair have determined Ms. Bryant should be put forward for reappointment. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The following individual is appointed to fill the following term: Appointee Date Appointed Appointment Ends Term Limit Cassandra Bryant November 1, 2026 October 31, 2029 October 31, 2030 PASSED AND ADOPTED THIS 14th DAY OF SEPTEMBER 2026. VOTE Prchal Boucher- Hoese Marco Braid Lake Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 14, 2026 AGENDA #: 6A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Resolution Approving Request for 2027 EDA Budget and Tax Levy DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution requesting city council approval of the proposed 2027 Prior Lake Economic Development Au- thority (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. The EDA reviewed a draft 2027 budget and levy request at their July 13, 2026 meeting and provided direction to staff. That direction has been incorporated in the summary below and is shown on the attachment. Current Circumstances City staff has proposed a revised draft 2027 budget for EDA review, which is sum- marized as follows: ➢ The budget includes estimated revenues of $495,600 and estimated ex- penditures of $707,927. This represents an increase of $37,500 in reve- nues and an increase of $15,000 in expenditures from the draft budget reviewed in July. ➢ Estimated revenues include an EDA tax levy of $429,300, interest earnings of $26,100 and facility rentals of $40,200. This represents an increase of $24,000 in the EDA tax levy and an increase of $13,200 in facility rentals from the draft budget reviewed in July. ➢ The EDA tax levy is proposed to increase 6.0% from the 2026 levy amount. ➢ The budget includes a planned use of EDA fund balance of $212,327. ➢ 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 $405,000 for property ac- quisition; a specific property(ies) has not been identified. The amount rep- resents a $20,000 increase from the draft budget reviewed in July. ➢ As in recent years, the proposed 2027 budget includes a $75,000 expendi- ture in Professional Services – General should the EDA wish to conduct or participate in any economic development related studies. The EDA has previously allocated $20,000 from its 2027 Professional Serivces – Gen- eral to the Arts and Culture Committee to help accomplish key initiatives identified by the ACC. 2 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 2027 preliminary valuation data, Prior Lake is anticipating a total estimated market value of $5,929,639,937 which would allow for a maximum EDA tax levy of $1,075,044. City staff is proposing an EDA tax levy of $429,300. ISSUES: Attached to this report is a resolution for EDA consideration requesting City Coun- cil approval of the proposed 2027 Prior Lake EDA tax levy and budget. FINANCIAL IMPACT: Staff is estimating the EDA 2026 year-ending fund balance will be $2,530,000; however, $897,000 of this balance is restricted as it represents assets held for resale. The estimated EDA 2026 year-ending cash balance is $1,635,000. The proposed budget estimates a 2027 year-ending fund balance of $2,318,000 with $897,000 represented by assets held for resale. ALTERNATIVES: 1. Motion and a second to approve a resolution requesting city council approval of the proposed 2027 EDA tax levy of $429,300 and a total budget of $707,927. 2. Motion and a second to approve a resolution requesting city council approval of revised 2027 EDA tax levy and budget amounts as determined by the EDA. RECOMMENDED MOTION: Alternative No. 1 ATTACHMENT: 1. Proposed 2027 EDA Revenues & Expenditures 09/08/2026 BUDGET REPORT FOR CITY OF PRIOR LAKE 2024 2025 2026 2027 2027 ACTIVITY ACTIVITY ACTIVITY DEPT REQUESTED FINANCE REVIEW GL NUMBER DESCRIPTION THRU 9/8/26 BUDGET (July)BUDGET (Sept.) 240-00000.00-31010.00 Current Property Taxes - General Purpos 365,707 377,462 197,299 378,543 402,843 240-00000.00-31040.00 Fiscal Disparities 21,490 26,575 14,503 26,457 26,457 240-00000.00-36210.00 Interest Earnings 12,913 19,575 31,390 26,100 26,100 240-00000.00-36225.00 Unrealized Inv.Gain(Loss)4,064 8,040 (23,324) 240-00000.00-39102.00 Sale of Property 1,088,093 240-46500.00-34760.02 Facility Rental - EDA 27,867 26,988 17,992 27,000 40,200 Total Revenues 432,041 458,640 1,325,953 458,100 495,600 240-46500.00-51100.01 Wages - Full Time 100,453 118,995 88,065 145,264 145,264 240-46500.00-51100.05 Wages - Commissioners 1,200 1,750 850 2,250 2,250 240-46500.00-51110.01 Overtime - Full Time 51 240-46500.00-51208.01 Sick Leave - Buy Down 1,854 1,854 240-46500.00-51400.00 Compensated Absences 610 893 662 1,089 1,089 240-46500.00-51450.00 Social Security Contributions 6,218 7,394 5,335 9,261 9,261 240-46500.00-51451.00 Medicare Contributions 1,454 1,730 1,248 2,166 2,166 240-46500.00-51460.00 PERA Contributions 7,534 8,925 6,611 10,940 10,940 240-46500.00-51463.00 MN Paid Leave Contributions 29 397 724 724 240-46500.00-51470.00 Health Insurance 7,472 9,718 9,219 14,604 14,604 240-46500.00-51472.00 Retiree HCSP Contributions 235 282 266 420 420 240-46500.00-51473.00 Dental Insurance 319 386 356 540 540 240-46500.00-51474.00 Life Insurance 51 58 49 68 68 240-46500.00-51477.00 Workers Compensation Insurance 626 225 288 447 447 240-46500.00-53020.00 Legal Services 1,088 3,760 3,000 3,000 240-46500.00-53100.80 Professional Services - General 10,142 88,749 8,882 75,000 75,000 240-46500.00-54010.51 Maint Agreements Misc Bldg & Structures 15,000 15,000 240-46500.00-54310.00 Memberships and Subscriptions 300 300 240-46500.00-54320.00 Miscellaneous Expense 19,764 9,872 8,461 15,000 10,000 240-46500.00-55040.00 Projects - Property & ROW Acquisit'n 70,000 385,000 405,000 240-46500.00-55050.00 Projects - Professional Services 9,500 10,000 10,000 Total Expenditures 165,578 250,094 204,500 692,927 707,927 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-03 EDA A RESOLUTION APPROVING THE 2027 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 2027 tax levy for economic development purposes in the amount of $429,300; and WHEREAS, The EDA proposes a 2027 annual budget in the amount of $707,927. 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 $429,300 to be collected in 2027 pursuant to Minnesota Statutes 469.107. 3. The EDA requests that the Prior Lake City Council adopt the 2027 EDA annual budget in the amount of $707,927. Passed and adopted this 14th day of September 2026. VOTE Prchal Braid Marco Lake Boucher-Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, Executive Director X X 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 14, 2026 AGENDA #: 7A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Downtown Parking Study RFP Responses DISCUSSION: Introduction The purpose of this agenda item is to review responses received from the re- quest for proposals (RFP) for a downtown parking study and implementation strategy and select a preferred consultant to complete the study. History The EDA and city council identified a desire to have a downtown parking study completed. An RFP was sent on August 13, 2026 and four responses were re- ceived by the September 9, 2026 deadline. Responses were received from: ➢ WSB ➢ SRF / Kimley Horn ➢ Bolton & Menk / Walker Consultants ➢ Transportation Collaborative & Consultants (TC2) Conclusion Staff will review the RFP responses and be prepared to make a recommendation at the September 14th meeting. Financial Impact Commissioners should discuss the funding source for the parking study and whether it should be funded entirely from EDA Professional Services or if the EDA would like to request the city council utilize general fund reserves. ALTERNATIVES: RECOMMENDED MOTION 1. Motion and second authorizing City Manager / EDA Executive Director Wedel to enter into a contract with XXX to complete the downtown parking study. 2. Table this item and continue discussion at a future meeting. Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 14, 2026 AGENDA #: 7B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: EDA Commission Size Discussion DISCUSSION: Introduction The purpose of this agenda item it to discuss whether the EDA may wish to explore increasing the size of the commission from five to seven members. Current Circumstances The EDA currently consists of a five-member body. The commissioners include two members of the city council and three members from the public, which are appointed by the mayor with the approval of the city council. The EDA has become more active in development and redevelopment activities in recent years and has increased its available funding through strategic property acquisition and sale. Due to an increased level of activity and funding, the EDA may find it appropriate to expand the size of the commission. Ideally an ex- panded commission would bring members with specific knowledge beneficial to the EDA, such as land development, redevelopment, property acquisition, ne- gotiations, business ownership, financing, etc. On the other hand, the EDA may feel the commission is currently functioning at a high level and prefers to remain as a five-member body. Minnesota Statutes 469.095, Subd. 1 states, an economic development author- ity shall consist of either three, five, or seven commissioners. Should the EDA pursue a seven-member authority, two members would be from the city council, and five members would be from the public. Conclusion If the EDA wishes to increase the size of the commission from a five- to seven- member body, an amendment to the EDA enabling resolution is required. ALTERNATIVES: Discussion only. Provide direction to staff regarding whether the EDA wishes to remain a five-member authority or expand to a seven-member authority. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: September 14, 2026 AGENDA #: 7C PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Downtown Nonconforming Property Review DISCUSSION: Introduction The EDA periodically reviews a map of city- and EDA-owned properties and nonconforming properties in the downtown area to support discussions on po- tential redevelopment areas or acquisition opportunities. Staff will share an up- dated map of city/EDA-owned and nonconforming use properties at the Septem- ber 14th meeting. ALTERNATIVES: Discussion only.