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HomeMy WebLinkAbout5 - 1990 Economic Development Committee Annual Report AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: "CELEBRATE PRIOR LAKE'S CENTENNIAL - 1991" 5 KAY SCHMUDLACH, ASSISTANT CITY MANAGER RECEIVE 1990 ECONOMIC DEVELOPMENT COMMITTEE ANNUAL REPORT AND 1991 ECONOMIC DEVELOPMENT STRATEGY FEBRUARY 4, 1991 The Economic Development Committee (EDC) annually prepares a report to summarize the committee's accom~lishments of the previous ~ear. The Econom1c Development Committee also 1dentifies the goals of the upcoming year. This agenda item has been prepared to present the EDC 1990 Annual Report and the summary of the 1991 Economic Development Strategy. Chairman Bob Barsness will be reviewing the documents at the February 4, 1991 City Council meeting. The EDC met on January 11, 1991 for its annual workshop to audit their 1990 activities and address the issues of the future. The results of the workshop have been summarized in the attached reports. A great deal of discussion occurred on the City'S development initiatives and the EDC relationship with the staff, community and City Council. The EDC is enthusiastic about the established for 1991 and anticipate discussion on the ~roposed activities February 4, 1991 C1ty Council meeting. Please note that the EDC has submitted all requirements to the State for approval of the Star Citr Program and antici~ates hosting a celebrat10n of certification 1n the next 3-4 months. Aside from the completion of the Star City Program, the primary goal of the EDC is the implementation of the tasks outlined for the Business/Office Park Study. The EDC is anxious to pursue the tasks identified jointly at the October 29, 1990 City Council, goals Council at the 4629 Dakota 51. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 An Equal Opportunity/Affirmative Action Employer " " . RECOMMENDATION: ACTION REQUIRED: planning commission and EDC Workshop. The EDC has listed a host of other activities also important to development in Prior Lake. The City council is encouraged to review and comment on the EDC 1990 Annual Report and the summary of 1991 Economic Development strategies. A more thorough discussion of the 1991 strategy has been prepared for the state as a requirement of the star City Proqram and is available for council review. Motion accepting and/or Annual Report and 1991 strategy is in order. modifying the 1990 Economic Development ECONOMIC DEVELOPMENT COMMITTEE 1990 ANNUAL REPORT AND 1991 ECONOMIC DEVELOPMENT STRATEGY JANUARY, 1991 SUBMITTED BY: Robert Barsness, Chairman Dar Fosse Rich Gross Jim Hill, Sr. Ray Lemley Dave Miller Steve Nielson Bill Packer Jere Phillips Darcy Running Rachel VanDenBoom Nat Wisser Kay Schmudlach, Staff Liaison David Unmacht, City Manager I. II. III. ECONOMIC DEVELOPMENT COMMITTEE 1990 ANNUAL REPORT 1990 Economic Development Committee Activities A. Introduction B. Full Committee Activities C. Promotion - Marketing Subcommittee D. Business Development Subcommittee Economic Development Committee New Membership BioqraphY Summary of 1991 Economic Development strateqy 1 4 6 I. 1990 ECONOMIC DEVELOPMENT COMMITTEE ACTIVITIES A. INTRODUCTION The Economic Development Committee annually meets to chart a course of activities through a strategic planning process. The result of the 1990 Workshop was a focused agenda of activities the EDC anticipated action on in 1990. This report is designed to summarize the activities and accomplishments of the Economic Development Committee (EDC) in 1990. The second part to this report will be a 1991 Work Program which has been prepared as a result of the January 11, 1991 Economic Development Committee Annual Workshop. The Economic Development Committee anticipates submitting both of these reports to the City Council for their approval and endorsement on February 4, 1991. B. FULL COMMITTEE ACTIVITIES The EDC functioned primarily as a full committee in 1990 due in part to the magnitude of the projects and to the predetermined pro~ects or goals. The Committee spent a great deal of t1me in project review and also in anticipated projects such as Bylaw rev1s10ns, Comprehensive Plan review, and policy analysis. The following five activities have been highlighted for City Council review. I. Comprehensive Plan Review The EDC has worked cooperatively with City staff and the Planning Commission to revise the Comprehensive Plan. Staff was primarily responsible for providing the revisions that have been, at times, forwarded to the EDC and Planning Commission for their review. At this time the Economic Development Committee is waiting for the staff draft and anticipates reviewing the draft of the Comprehensive Plan in 1991. The EDC will focus primarily on the economic development components, but will provide comments on the other sections of the plan. 2. Business Park Location Study The Business Park Location Study was completed in 1990 and has been reviewed by the EDC, Planning Commission and City Council. Staff forwarded a copy of the workshop results to the EDC in January. The EDC will review the summarr and forward the1r comments to the City Counc11 along with the Planning Commission comments on February 4, 1991. 1 3. 4. 5. policies(Senior HousinI The EDC 1dentified Sen or Housing as a policy that is required to be developed. The EDC, through staff, researched the Senior Housing policies available at other cities and spent a great deal of time preparing a draft policy. The policy was forwarded to the Council and was adopted on January 7, 1991. Bylaw Revisions The EDC has welcomed several new members in 1990 that have revitalized the Committee and provided new insights into development issues. The Economic Development Review Committee did recommend Bylaws changes to allow for an Ex-officio member from the school. The EDC and City Council agree that having a designated school official represented on the EDC is a benefit to the City and the School District. proiect Review Another activity that the entire EDC has taken on has been project review. The projects reviewed by the Economic Development Committee this year primarily concerned the proposed County Market and the relocation of the current Super Valu and the re-leasing of the Gateway Center. The Economic Development Committee has spent a great deal of time dealing with the participants in each project and have demonstrated great concern and leadership in trying to complete the proposed facilities. Other projects reviewed by the Committee include the successful MNTEX relocation, Metro Air relocation, the proposed Nielson construction, and the proposed Rainbow Play Systems expansion. C. PROMOTIONS MARKETING SUBCOMMITTEE The Promotions Marketing Subcommittee was chaired by Dave Miller and included the members Dar Fosse, Rich Gross, Rachel VanDenBoom, Steve Nielson, and Jere Phillips. Primarily the subcommittee had four main goals: to provide outreach to the cottage industries in Prior Lake, to provide support to the Chamber, to complete the Star City Program, and to initiate a marketing program. 1. Cottaqe Industry Outreach The EDC Subcomm1ttee recommended a subscription to a cottage industry magazine entitled "Small Business Enterprises". The Economic Development Committee members have had the opportunity to review the magazine. 2 2 . Chamber Support The EDC has strengthened its relationship with the Chamber in several instances requesting assistance with hosting events. The best example of this is the Business Appreciation Golf Tournament. The Business Appreciation Golf Tournament was eliminated from the 1990 budget due to budget constraints. However, the Chamber and some of the local utility companies did come forward with certain amount of funds so that the Business Appreciation Golf Tournament could be held again. In addition the Council did free u~ some dollars for this event as well. The Comm1ttee has also worked with the Chamber discussing a Business Exposition which may be held next year in con~unction with the currently held Info-Expo. Ass1stant City Manager Kay Schmudlach will be coordinating this effort through her position on the Chamber Board and her staff position with the EDC. 3. star City Proqram The Economic Develo~ment Committee spent a great deal of time review1ng the elements of the star City Program and did submit a draft to the State of Minnesota. The state is reviewing the program and the Economic Development Committee anticipates approval in the very near future. D. BUSINESS DEVELOPMENT SUBCOMMITTEE The subcommittee was chaired by Darcy Running and members of the committee included Dennis Hanson, Jim Hill, Nat Wisser, Ray Lemley, and Bill Packer. The Business Development Subcommittee entered into two major programs. 1. Downtown Redevelopment and Establishment of the Revolvinq Loan Proqram The Economic Development Committee spent a great deal of time and energy in trying to organize the downtown merchants into considering a downtown improvement project. Staff prepared cost estimates and some schematic drawings to generate interest in the feasibility study. The EDC with the assistance of Darcy Running and Bill Packer generated a great deal of interest, but not enough to get the necessary signatures to initiate the feasibility study. Unfortunately, the interest in the downtown improvements and the revolving loan program did not 3 create enough commitment to continue on with the feasibility study. Fortunately, as a result of the interest or the discussion with the downtown tenants in the improvement project, the tenants have initiated efforts toward the formation of an association. 3. Scott County Economic Development Partnership staff has worked very closely with the other cities of Scott County to initiate this project. With the sup~ort of the EDC, the cities and Scott County the proJect organization should be finalized in February of 1991. The Scott County Economic Development Coalition as it is now called has been modeled after the Scott County Transportation Coalition and will provide, not only a more structured financing alternative to the SBA Loan Program for businesses anticipating relocation into or within Scott County, it will also provide ~oint opportunities for public relations mater1als to be distributed. The Scott County Economic Development Coalition anticipates having Brlaws and the Joint Powers Agreement approved 1n February of 1991. II. ECONOMIC DEVELOPMENT COMMITTEE NEW MEMBERSHIP BIOGRAPHY A. MEMBERS In this section, a short biography on the new EDC members has been prepared to familiarize the City Council with the backgrounds and skills of each member. Steve Nielson: Mr. Nielson was appointed to the Economic Development Committee in 1990 and currently serves on the Promotion Marketing Subcommittee. Steve is the owner of the local Main Avenue Video stores and the Mobil Gas Station on Main Avenue. Jere Phillips: Mr. Philli~s is and serves on the Promot10ns Mr. Phillips is the Business Lake/Savage School District. Nat Wisser: Mr. Wisser is a 1990 appointee to the Economic Development Committee and currently serves on the Business Development Subcommittee. Mr. Wisser is a retired Colonel, u.S. Army Medical Service, served on State, Hennepin County and City of Bloomington Advisory Committees. A founder of the South Hennepin Human Services Committee, a joint powers agreement of Edina, RiChfield, Eden prairie and Bloomington. also a 1990 appointee Marketing Subcommittee. Officer for the Prior 4 Ray Lemley: Mr. Lemley is a 1990 appointee to the Economic Development Committee and currently serves on the Business Development Subcommittee. Mr. Lemley is the owner of the Hollywood Inn Bar and Grill. Bill Packer: Mr. Packer is a 1990 appointee to the Economic Development Committee and currently serves on the Business Development Subcommittee. Mr. Packer is the Vice President of Scott Rice Telephone Company. 5 IV. SUMMARY OF ECONOMIC DEVELOPMENT 1991 WORK PROGRAM ACTIVITIES TIME FRAME 1. Comprehensive Plan - Revisit P.L. 2000 - Annexation - Economic Development Policies Ongoing 2. Business Outreach (local) Ongoing - Education - Public Relations - Liaison Function 3. SCEDC Ongoing - Brlaws~Joint Powers F1nanc1ng 4. Development Outreach (Regional) Ongoing - Tours - Commercial/Industrial Inventory - Property Owner Meetings - Developer Interviews 5. County Lobbying Ongoing - Highway Improvement Scheduling - Dick Underferth/Brad Larson 6. Project Review Ongoing - Nielson Project - Super Valu - Gateway Center - Others 7 . Chamber Support - Liaison Person - Info/Expo Business Summit - Business Appreciation Golf outing Ongoing 8. Business Office Park Study - Summary Approval Implementation - Financial Strategies Feb. 4 1991 1991 6 KEY PERSON(S) Staff/EDC Staff/EDC Dave Miller Staff/Nat/ Darcy Staff/Jim Dave Miller Bill/Dar Staff/EDC Staff/EDC Staff/Bob/ Jere/EDC 9. Market Senior Housing Proposal - Contact Develop. Persons Including Local Individuals 10. star City Program -Final Submissions -Certification -Banquet -Re-certification 11. Commercial/Retail "Policy" - TIF Guidelines - Revolving Loan Program 12. EDC Council Philosophy - Meeting - Consensus - Dialogue - Ongoing - Vision - Update P.L. 2000 Survey 1-91 to 5-91 January February Spring 91 Oct. April January 7 Nat/Bob Bob/Kay/ Dave U./ Dave Miller " " Rachel/Dar Darcy/Kay Dave/Kay Ray/Jim Intern Bob/EDC ~ ADOPTED: REVISED: IiJ/jJRI . lfJ Ill! CITY OF PRIOR LAKE TAX INCREMENT FINANCING POLICY AND APPLICATION INFORMATION PURPOSE: The purpose of this policy is to describe the goals and objectives of the City of Prior Lake for the use of Tax Increment Financing assistance, and to establish a review process for Tax Increment Financing proposals, including requirements, review criteria, eligible activities, and funding ap~roaches. This policy shall be used as a guide in process1ng and reviewing applications requesting Tax Increment Assistance. STATUTORY AUTHORITY: On July 17, 1989, the City of Prior Lake, Minnesota, established an Economic Development Authority with all the powers contained in Minnesota statutes, section 469.090 to 469.108, the powers of a housing and redevelopment authority under Minnesota Statutes, sections 469.001 to 469.047 or other law, and the powers of a city under Minnesota Statutes, Sections 469.124 to 469.134 or other law. The purJ?ose of establishing the City of Prior Lake, Minne- sota, Econom1c Development Authority was to centralize the city's redevelopment and economic development efforts in a single governmental organization having the broadest statutory authority for undertaking community development activities. Tax Increment Financing assistance requests to the E.D.A. must comply with applicable State Statutes. The Cit~ of Prior Lake is governed by the limitations established in M1nnesota Statutes 469.174, the Minnesota Tax Increment Financing Act for all districts created after August 1, 1979. GOALS AND OBJECTIVES: Goals for the City of Prior Lake include the encouragement and provisions for the revitalization of the City through the development, or redevelopment, of existing and new commercial, industrial, and residential areas; to increase emplo~ment; to strengthen the local tax base; and to assist in prov1ding a variety of affordable housing opportunities for City residents. It is the intention of the Prior Lake Economic Development Authority to support broad-scale, community development activities and to use available and appropriate financing to fund the public redevelopment cost. Objectives for the City include: 1. The creation of a desirable and uni9Ue character through compatible land use and quality des1gn in new and rede- veloped buildings. 2. The elimination of blight and substandard conditions that impede the development potential and economic health of the Downtown Area and other development district areas. 3. The preservation of historically significant structures for reuse in viable commercial, industrial, or residential activities. 4. To promote the develo~ment of certain areas and properties consistent with the C1ty Comprehensive Plan. 5. To increase employment opportunities within the City of Prior Lake. 6. To encourage local business expansion. ELIGIBLE USES FOR TAX INCREMENT FINANCING IN PRIOR LAKE: The City of Prior Lake will consider usin9 Tax Increment Financing to assist private developments only 1n those circum- stances where the proposed private projects meet one or more of the following uses: 1. Provide site preparation for private development. This may include soil correction, grading, landscaping, and/or drainage improvements. 2. Provide for the financing and construction of public improvements, such as water, sanitary and storm sewer lines, roads, and drainage. 3. To redevelop blighted or under-utilized areas of the community. 4. To increase the tax base of the city in order to ensure the long-term ability of the City to provide adequate services to residents while lessening its reliance on residential property tax. 5. To retain, increase, or provide diversity to the local employment base. 6. To provide adequate business, shopping, or residential parking areas. 7. To increase the local business and industrial market potential of the City of Prior Lake. 8. To encourage additional, unsubsidized private development in the area of the project, either directly, or through secondary development. meet the following housing related issues: Provide diversity of housing adjacent to the downtown. Provide a variety of housing ownership alternatives and choices. Promote affordable housing for low or moderate income individuals. Promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock in residential areas. 10. To promote the potential future usage of a public transit system. 9. To a) b) c) d) 11. To offset increased costs of redevelopment, over and above those costs that a developer would incur in normal urban and suburban development. 12. To accelerate the development process and to acieve development on sites which would not be developed without this assistance. PROPOSAL REQUIREMENTS: All new projects approved b~ the City of Prior Lake shall meet the following mandatory min1mum approval criteria. However, it should not be presumed that a project that meets these criteria will automatically be approved. Meeting these criteria creates no contractual rights on the part of any potential developer. Minimum Approval criteria: 1. Public benefit of assistance must be clearly demonstrated. It must be financially demonstrated that the project will not materialize without tax increment assistance. All proposals requesting TIF assistance shall sign a "but for" letter demonstrating the need for the public assistance and that, but for the assistance the project would not progress further, or would locate in another area. 2. The project must be in accordance with the comprehensive Plan and zoning Ordinances, or required changes to the Plan and Ordinances must be under active consideration by the City at the time of the approval. 3. Tax Increment Financing assistance shall be ~rovided within applicable state legislative restrict1ons, debt limit guidelines, and other appropriate financial requirements and policies. "4. The project shall meet one or more of the aforementioned Tax Increment Financing Eligible Uses. 5. Prior to approval, the developer shall provide any required market and financial feasibility studies, appraisals, soil boring, information provided to private lenders for the project, and other information or data that the City or its financial consultants ma~ require in order to proceed with an independent underwrit1ng. 6. Developers shall provide full disclosure of project financial and market information so that the City can have the information verified and reviewed by a qualified expert. 7. Developers shall provide adequate financial guarantees to ensure the re~a~ent of the subsidy. These may include, but are not 11m1ted to assessment agreements, letters of credit, etc. 8. Developers shall be able to demonstrate past successful general development capability, as well as specific capability in the type and size of development proposed. 9. Developers shall retain ownership of the project at least long enough to complete it, stabilize its occupancy, establish the project management, and to initiate repayment of the Tax Increment Financing assistance. FUNDING APPROACH: --.. (' APPLICATION PROCESS: 1. Applicant shall make an application for Tax Increment Financing usage on the attached forms and submit these, with the appropriate application fee, to the City of Prior Lake. submitting these forms provides the applicant's permission to allow the City's Economic Development Authority and the City itself to check the backgrounds of managing partners or project managers and personnel within the development corporation and within the financial guarantee organization. 2. The following information may be requested by the City: Statement of Public Purpose. Description of Project. Plans and drawings of Project. Description of the Company. Legal Opinions. Investment Bank Letter of Feasibility. Market Analysis. Pro Forma Analysis. Financial statements. certified M.A.I. Appraisal. Traffic Impact Analysis. Other Documentation as Requested by the City. a. b. c. d. e. f. g. h. i. j. k. 1. 3. The Economic Development Authority or its agent will review the data and make preliminary recommendations to the E.D.A. Board as to compliance of the application and proposed project with City and E.D.A. objectives and criteria. 4. Final evaluation of the application will include, in addition to items subject to preliminary review, a review of applicable credit analysis, credit enhancement and legal compliance. Formal recommendations will then be made to the City Council. 5. After a review of the formal evaluation, the Prior Lake Economic Development Authority and City council will consider final approval of the establishment of the Tax Increment Financing District and hold the appropriate public hearings. 6. All applications and supporting materials and documents shall become the property of the City.