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Home My WebLink AboutMay 17, 1999 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, May 17, 1999 5:30 p.m. Fire Station City Council Chambers 1. Call to Order 2. Pledge of Allegiance 3. Approval of Minutes - Regular Meeting April 19, 1999 Special Meeting April 28, 1999 4. Consent Agenda 5. Presentations 6. Public Hearings 7. Old Business a) Results of April 21, 1999 meeting with Scott County HRA. b) Results of May 13, 1999 Downtown Redevelopment Workshop. c) Proposed 2000-2004 Capital Improvement Program 8. New Business a) Consider Megabit Committee Final Report. b) Proposal for business visits by EDA members. c) Procedures for authorizing EDA funds. 9. Other Business a) Review 1999 EDA Goals and Objectives 10. Announcements or Correspondence 11. Adjournment, 7:00 p.m. L:\99FILES\99EDA \EDAAGEND\AG051799.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, April 19, 1999 5:00 p.m. Fire Station City Council Chambers Call to Order and Pledge of Allegiance. Those present were President Barsness, Commissioners Kedrowski, Schenck, Underferth and Jader, Executive Director Boyles, City Attorney Pace, Consultant Guennette, Planning Director Rye, Planning Coordinator Kansier and Recording Secretary Meyer. ApPROVAL OF MARCH 22, 1999 MEETING MINUTES: MOTION BY SCHENCK, SECOND BY JADER, TO APPROVE THE MARCH 22, 1999 MEETING MINUTES. VOTE: Ayes by Barsness, Kedrowski, Schenck, Underferth and Jader, the motion carried. CONSENT AGENDA: None PRESENTATIONS: Scott Rice Telephone - High-Speed Data Transmission. JADER: Provided the background with respect to the Megabit Committee's research into getting high- speed data transmission capabilities in Prior Lake. Also introduced Paavo Pyykkonen, General Manager of Scott-Rice Telephone. PVVKKONEN: Discussed the changes underway within Scott-Rice Telephone Company and that part of the reasons for the changes is so that Scott-Rice Telephone can serve the need for a telecommunications infrastructure in Prior Lake. Discussed partnering with the City to provide the necessary infrastructure. Described the structure of the infrastructure and how it could be implemented through telecommunications and data applications. Scott County HRA Resources to Assist Prior Lake. President BARSNESS introduced Bill Jaffa, Executive Director of the HRA, and Gene White, Prior Lake HRA Commissioner. J.AE.EA: Discussed the recently updated County-wide Rental Housing Study which provides a projection for the rental housing needs for the County in light of recent development. The document aids the HRA in determining the degree in which partnerships with local governments are necessary. The Study found that the demand for rental housing currently exceeds that available. Reviewed recent projects that the HRA has participated in including River City Centre in Shakopee, Savage Mixed Used Development, and a 50-Unit Scattered Site Multi-Family project. Further discussed the partnership structure/framework between the HRA and local governments. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Economic Development Authority Meeting Minutes April 19, 1999 WHITE: Added that redevelopment is part of the HRA's charge, and that the HRA has been very innovative and successful at public-private partnerships. GUENNETTE: Commented that the HRA's efforts are impressive, but each of the projects included from the City/County some form of cash contribution or general obligation pledge or debt service collateral enhancement. For the City to be able to move forward on the Downtown Redevelopment, the EDA needs to have Council support for that financial assistance. SCHENCK: Asked about the upcoming meeting with the City Manager and Planning Director. JAFFA: Stated that they will discuss the disposition of the property currently owned by the HRA, together with the joint powers agreement. KEDROWSKI: Suggested staff take the tour of the Shakopee facility. BOYLES: Advised Jaffa and White that the date for the next Downtown Redevelopment workshop is Thursday, May 13th @ 7pm at the High School Cafeteria and encouraged them to attend. PUBLIC HEARINGS: None. OLD BUSINESS: Consider Agenda for Joint EDA, City Council and Planning Commission Meeting. BOYLES discussed the potential dates for the meeting and asked for any additional recommendations as to the agenda. KEDROWSKI: Suggested adding as a specific agenda item the discussion of the commitment of dollars. GUENNETTE: Added that philosophically there needs to be a consensus between the various bodies in order to proceed with any project. Consider Approval of Report on Downtown Walk Meeting. BYE: Provided an overview of the walk through the Downtown area to provide the consultant with a physical feel for the area, and one of the greatest benefits was that the people who attended could provide much of the history of the area with respect to land use and why certain decisions had been made. NEW BUSINESS: Consider Approval of Report of TH13 Intersections. BOYLES introduced Greg IIkka, Public Works Director, and advised the EDA of the intent of the report. 1:\ADVBODYS\EDA\MINUTES\99\041999.DOC 2 . ,..~.A.... .~I-~..~-j-i;"I~~I~r:..i:J. A;io..... ..... ~......-..........................,...............__~ ~ .....illl"i..,;- . ~'.;A.";:, ..~ ~..... ,~ ..~ ......, SIR' Economic Development Authority Meeting Minutes Apri/19, 1999 KEDROWSKI: Suggested that, in the interest of time, the EDA schedule a special meeting at which to address this issue and develop a recommendation for Council consideration. MOTION BY KEDROWSKI, SECOND BY UNDERFERTH TO TABLE THIS ITEM TO A SPECIAL MEETING. VOTE: Ayes by Barsness, Kedrowski, Jader, Underferth and Schenck, the motion carried. Consider Status Report on 4.5 Acres Business Park Parcel and Authorize the Expenditure for a Survey of this Parcel. BOYLES reviewed the agenda item in connection with the staff report and the action requested. The direction to the staff had been to take the steps necessary to make this a turnkey property. The costs associated include soil correction and wetland mitigation. Since this involves significant dollar amounts, the issue becomes whether we should set this aside to give the staff the opportunity to further determine the potential implications for development of the parcel. BARSNESS: Asked if the EDA hadn't previously looked at much lower estimate. BYE: Stated that the previous estimate was for wetland mitigation only which was much lower. Since that time, staff received the soil report which calls for additional corrections. GUENNETTE: Added that this is a preliminary number because actual costs can't be de'termined until a site plan is completed by whomever is serious about the parcel and soil borings are taken from the site - where the building will be placed. Recommended surveying the parcel at this point and aggressively market the property with the intent of selling for around $1.50 per foot and crediting back the costs for soil correction. KEDROWSKI: Asked about potentially making a cul-de-sac and splitting the property. GUENNETTE: It would cost us about a half-acre of land for right-of-way, plus the costs of the road and utilities. .BYE: Added that the soil conditions on that site are not uniform. There may be more or less costs for soil correction depending on the location of the proposed building. MOTION BY KEDROWSKI, SECOND BY SCHENCK TO DIRECT STAFF TO OBTAIN A SURVEY IN AN AMOUNT NOT TO EXCEED $2000. SCHENCK: Asked if it is appropriate to also do the wetland mitigation at the same time. GUENNETTE: Recommended that because it is budgeted, it would be appropriate. BOYLES: Stated that the staff has already been directed to proceed with the wetland mitigation. Unless otherwise directed, we will continue to take those steps. The intent of this item was to discuss the additional costs so the EDA would be aware of th magnitude of the investment needed to develop this property . VOTE: Ayes by Barsness, Kedrowski, Jader, Underferth and Schenck, the motion carried. I :\ADVBODYS\EDA\MINUTES\99\041999.DOC 3 Economic Development Authority Meeting Minutes Apri/19, 1999 OTHER BUSINESS: NONE. ANNOUNCEMENTS: NONE. Upon a motion and second, the meeting adjourned at 6:58 p.m. 1:\ADVBODYS\EDA\MINUTES\99\041999.DOC 4 ~'_ ~.",;"...,...,,"c.:& '_~.LJ.;'i:_..~liiI,.:..ll,', ..~ . ,l;t ,,!.~I ..t"..;il..!L.....J.........."..o.c _._ .!ili>. PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Wednesday; April 28, 1999 4:00 p.m. Fire Station City Council Chambers Call to Order and Pledge of Allegiance. Those present were Commissioners Kedrowski, Schenck, Underferth and Jader, Public Works Director IIkka, Planning Coordinator Kansier and Recording Secretary Meyer. NEW BUSINESS: Consider Approval of Report on Major TH13 Intersections: (1) CSAH 42 Frontage Roads, (2) Commerce Avenue/Boudin St., (3) 150th Street, (4) CSAH 23, and (5) Other. BOYLES: Reviewed the history with respect to this Agenda Item and the intent of the meeting. The EDA should make a recommendation to the City Council as to priority of the TH13 intersection improvements as the Council addresses funding within the context of the Capital Improvement Program, which identifies the projects the City wishes to engage in within the next five years. - 1J.KKA: Discussed each of the major intersections with respect to safety concerns, funding, timing issues and the specific options for realignment of each and how those realignments impact the City, MNDOT, and current and future residents of Prior Lake. BOYLES: Asked if the crash rate statistics could intiate any action by local agencies. .lLKKA: Indicated that the responsibility for intiating action typically falls on the City, and that the statistics act as an indicator. SCHENCK: Asked if the statistics are more specific as to the intersections themselves or the regular roadway. lLKKA: Indicated that to his knowledge the information is not available. At the conclusion of the presentation, the Commissioners discussed the advantages and disadvantages of each of the alignments from an economic development and cost perspective. The Commissioners voiced concerns about the impact the various alignments would have on current and future property owners, funding the projects, timing, facilitating traffic movement to benefit commercial properties, and the crash statistics presented. The EDA further discussed recommending implementation of a long-term strategy for partnership with the HRA to acquire the properties necessary for the CSAH 42 frontage roads as they come available. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Economic Development Authority Special Meeting Minutes April 28, 1999 THE COMMISSIONERS REACHED A CONSENSUS TO RECOMMEND TO THE CITY COUNCil IMPROVEMENTS TO TH13 INTERSECTIONS IN THE FOllOWING PRIORITY: (1) COMMERCE/BOUDIN; (2) CSAH 42 FRONTAGE ROADS STRATEGY; (3) CSAH 23; AND (4) 150TH. BOYLES: Also noted that there are other intersections that need to be addressed, but that the resources are not available to do everything at once. Staff is attempting to level out the C.I.P. costs over each five year improvement period. OTHER BUSINESS: NONE. ANNOUNCEMENTS: NONE. Upon a motion and second, the meeting adjourned at 5:35 p.m. -- 1:\ADVBODYS\EDA\MINUTES\99\042899.DOC 2 "";;"'~;;;;~~;;';'.:'. .. .~ ;";.;r .. . '1. ~,i,.;.';;'.:Ia,;1....':'. :";;~;,t", .-'_ ECONOMIC DEVELOPMENT AUTHORITY CITY OF PRIOR LAKE, MN. MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: MAY 17, 1999 7A DONALD RYE, PLANNING DIRECTOR CONSIDER RESULTS OF MEETING WITH SCOTT COUNTY HRA STAFF AND COMMISSIONER DISCUSSION: At the April 19 EDA meeting, Commissioners heard a presentation from Bill Jaffa, Executive Director ofthe Scott County HRA and Gene White, Scott County HRA Commissioner and the City's representative on the HRA. MR. Jaffa and Mr. White discussed some of the findings of the County Rental Housing Study and also indicated they would be meeting with City staff to further discuss issues of mutual interest. On April 21, Frank Boyles ad Don Rye met with Mr. Jaffa and Mr. White and discussed several matters. The first item was to discuss in more detail the County Rental Study which was recently completed. Rather than try to summarize the report, we have included the summary of findings and the conclusions and recommendations from the study. The second item of discussion was the River Center project and the financing which was utilized to make the project happen. This discussion led to a general discussion of the various ways in which the HRA funds its various activities including a tax levy, bonds, loans and grants. Finally, we discussed a proposed Joint Powers Agreement suggested by the HRA as a means of developing projects. A copy of the Agreement is attached for your review. Staff believes there are 5 alternatives which the EDA could consider relative to this proposed agreement.They are as follows: 1. Take no action on the agreement. 2. Develop specific agreements on a project-specific basis. 3. Enter into the agreement as proposed. 4. Enter into the agreement with modifications deemed appropriate. 16200l~~\~.l':S.\Ofl~~7~ MinnesotalS5372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RECOMMENDED MOTION: REVIEWED BY: 5. Enter into a general agreement or memorandum of understanding agreeing to mutual communication and cooperation. Please be ready to discuss this at the meeting. .... None required Frank Boyles, City Manager L:\ECONDEV\EDA\EDAREPTS\0517997 A.DOC 2 I" ,;;v . ... ",.u~IliDl!!l-''''''''--''''-IFIIiifj' A,"-, ~-""- ... w ".." . '-''''.-,_~Ii! L .. ~ ,....-.,....,..,.........-,....,... *' .:iij; SUMMARY OF FINDINGS Demographic Review . Since households are occupied housing units, household growth is the best indicator of housing demand. According to the Metropolitan Council, Scott County added nearly 6,300 households between 1990 and 1997, surpassing its gains for the entire 1980s (5,866 households). Meanwhile, the County is expected to see increases of roughly another 2,880 households between 1997 and 2000. . Growth in Scott County will continue to accelerate over the next two decades with increases of 12,370 households between 2000 and 2010; and 13,170 households between 2010 and 2020. This rate of growth is three times that of the metro area as a whole, between 1990 and 2020. . The accelerated growth forecast for Scott County over the next two decades is the result of improved access provided by the new Bloomington Ferry Bridge/Highway 169 Bypass, coupled with adjacent communities, particularly West Bloomington and Bumsville, becoming fully-developed. . During the 1990s, 75 percent of the household growth in Scott County occurred in its three larger suburban communities - Savage, Shakopee and Prior Lake. Based on Metropolitan Council's projections, the three suburban communities are expected to account for roughly 85 percent ofthe County's household growth over the next two decades. . New Prague, Belle Plaine, and Jordan also experienced relatively significant gains in house- holds with increases of between roughly 20 and 30 percent projected for the 1990s. Growth in the rural portion of the county has also been strong during the 1990s, resulting from leapfrog development. Overall, the number of households in rural Scott County is expected to increase by about one-third during the 1990s. . The Metropolitan Council's projections shows household growth accelerating in the freestanding communities within Scott County over the next two decades while growth in rural Scott County will taper-off. The deceleration of growth in rural Scott County is based on the belief that managed growth will be enforced in rural Scott County, however, we believe that these figures are likely conservative and that this area will experience greater growth than is projected . Thus far during the 1990's, every age group posted gains. Children (persons 17 and under age group experienced by far the greatest numerical increases, with an increase of just over 5,000 persons or 60.2 percent. The next two largest gains occurred among the 35 to 44 age group, (3,800 persons) and the 45 to 54 age group (2,150 persons), both representing baby boomers. . . Scott County's senior population (persons age 65 and older) also experienced significant growth thus far during the 1990s, with an increase of nearly 1,670 persons (an average of 210 per year). The senior population growth is expected to accelerate over the next five years with the projected addition of 1,475 persons (an average of295 per year). MAXFIELD RESEARCH, INC. SUMMAR Y OF FINDINGS . As with the age of the population, types of households also affect the types of housing needed. In Scott County, the largest household type categories in 1990 were married couples with children (41 % of all households) and married couples without children (29% of all households). The number of households in every household type category experienced substantial gains in Scott County during the 1980s. Married couples without children, however, experienced by far the largest numerical increase, with a gain of over 2,200 households (66%). . The proportion of all households that rent their housing declined from 19.5 percent in 1980 to 18.1 percent in 1990, due to the substantial increase in owner-occupied housing units. Renter households comprised only 15 percent of the County's household growth during the 1980s. . In 1990, the proportion of renter households in the cities of Scott County ranged from 8.0 percent (Elko) to 29.3 percent (Shakopee). Most of the county's householders age 15 to 24 rented their housing (64.2 percent in 1990), while the vast majority (between 65.8 and 90.9 percent) of households in the remaining age cohorts owned their housing. . Scott County's seniors tend toward renting their housing as they age: 16.5 percent of the householders age 65 to 74 and 34.2 percent of the householders age 75 and over rented their housing in 1990. On the other hand, the 25 to 34 age group comprised by far the largest number of renter households, accounting for 36.2 percent of all renters. . The median household income in Scott County is expected to increase from just under $55,000 in 1998 to just over 564,000 in 2003. The number of households with incomes of $50,000 or more will increase by 25 percent between 1998 and 2003, while the households with incomes below $50,000 will increase by only 16 percent. The substantial increases in income are due to large numbers of baby boomers aging their peak earning years. . According to Metropolitan Council estimates, Scott County will have added about 10,950 jobs during the 1990s. As with employment growth throughout the metro area, employment growth in Scott County is expected to taper-off slightly between 2000and 2010, with a projected increase of9,360 jobs. Job growth is expected to slow considerably in both Scott County and the metro area between 2010 and 2020. Rental Market Review . Limited rental housing construction during the 1 990s has driven vacancy rates in the Twin Cities to an all-time low. Rental vacancy rates metro-wide were 1.1 percent as of 3rd Quarter 1998. . 380 rental units were built in Scott County between 1990 and December 1998. In addition, we identified 20 rental units that were lost to fire or converted to ownership housing resulting in a net increase of about 360 units. Meanwhile, the County has seen an increase of about 7,200 households. Thus, rental housing has accounted for only about 5 percent of the County's household growth between 1990 and 1998. ., MAXFIELD RESEARCH, INC. " iII""- .I~.!:,,':' " .it. ..,Mw:.':i"i!'I,~,.I''''':~ ii;' 11:;.,,';H!i'fitillliil _.. ill' SUMMARY OF FINDINGS . Of the roughly 380 units built in the County during the 1990s, about 10 percent were subsidized, 40 percent were market rate and one-half were affordable units, . The rental market in Scott County is also very tight. A survey oflarger rental projects throughout the County, revealed a vacancy rate of 1.0, excluding, River City Apartments which was still in its initial lease-up period at the time of the survey. . The following tables summarize vacancy information for both the general occupancy and senior rental projects surveyed. Shakopee Market Rate Total Vacant Rate 668 7 1.0% 268 2 0.7% 280 4 1.4% 31 0 0.0% 55 0 0.0% 52 0 0.0% 1.354 13 1.0% Savage Prior Lake Jordan Belle Plaine New Prague Total RENT AL MARKET SURVEY SUMMARY GENERAL OCCUPA1~CY PROJECTS SCOTT COUNTY November 1998 Tax Credit Subsidized Total Vacant Rate Total Vacant Rate 48 0 0.0% 56 0 0.0% 43 0 0.0% 17 0 0.0% 48 0 0.0% 40 2.5% 0 0 38 2 5,3% 4 . 0 0.0% 53 1.9% 48 2 4.2% 57 1.8% 191 2 1.0% 261 5 1.9% Total Units Vacant Rate 772 7 0.9% 328 2 0.6% 368 5 1.4% 69 2 2,9% 112 1 0.9% 157 3 1.9% ~ 1,806 20 1.1% . Belle Plaine Apartments is a 25-unit building with a maximum of 21 units receiving HUD Section 8 subsidies; the remaing units fall under MHFA's tax-credit program. Thus, the minimum number of tax credit units is four, but could be more. Source: Maxfield Research Inc, . The general occupancy projects surveyed had 1,806 units and an overall vacancy rate of 1.1 percent. Market rate and tax-credit projects both reported vacancy rates of 1.0 percent while subsidized projects had a vacancy rate of 1.9 percent. . There are currently 10 senior rental projects with 484 units in Scott County. A survey of these projects revealed 11 vacant units, a vacancy rate of 2.3 percent. However, eight of these vacancies occurred at River City Apartments, Excluding River City, the vacancy rate was 0.7 percent. Subsidized senior projects had a vacancy rate of 0.3 percent while the market rate projects had a vacancy rate of2.3 percent, excluding River City. MAXFIELD RESEARCH, INC. .., j SUMMARY OF FINDINGS RENT AL MARKET SURVEY SUMMARY SENIOR RENTAL PROJECTS SCOTT COUNTY November 1998 Shakopee Market Rate Total Vacant Rate 52 8 15.4% 45 0 0.0% 0 0 -- 0 0 -- 0 0 -- 42 2 4.8% 139 10 7.2% Savage Prior Lake Jordan Belle Plaine New Prague Total Source: Maxfield Research Inc. Conclusions and Recommendations Subsidized Total Total Vacant Rate Total Vacant Rate 128 0 0.0% 180 8 4.4% 0 0 4S 0 0.0% 39 0 0.0% 39 0 0.0% 52 0 0.0% 52 0 0.0% 3S 0 0.0% 3S 0 0.0% 91 1.1% 133 3 2.3% 34S 0.3% 484 11 2.3% . Demand for rental housing in Scott County was estimated at 1,110 units between 1998 and 2003. General occupancy demand was estimated at 750 units and demand for senior rental housing was estimated at 360 units. . Our demand methodology accounted for household growth (nearly 900 units), replacement need (100 units), pent-up demand (roughly 60 units) and a vacancy rate of 5.0 percent (50 units) to allow for consumer choice and unit turnover. . Based on the projected change in income distribution of Scott County residents in 1998 and 2003; we believe that about 45 percent of the general occupancy demand (340 units) will be for market rate projects, 40 percent of demand (310 units) will be for moderate rent units, and 15 percent (110 units) will be for subsidized units. . There is a need for additional general occupancy housing throughout Scott County. The majority of the demand for market rate general occupancy rental housing is in the suburban portion of the county, however, a small market rate project could also be supported in the Belle Plaine-lordan area. We feel that some moderate-rent general occupancy housing could MAXFIELD RESEARCH, INC. -\. .("",...--o&'..'_j~1i.~,i,~__:_, .' Jl ..~._.,..;;,'.&J>,'~.<oi.I~ _,,,," ..... _.. " iJlI.L, ~__'~_L"""_ _..__...__~. ..._ .._~ ..:...:iuw _-'" SUMMARY OF FINUINGS be supported in each of the larger cities in Scott County. We also recommend additional subsidized general occupancy housing in Shakopee, Prior Lake, Savage, and New Prague. . There are currently a large number of general occupancy rental projects either under construction and in various planning stages for Scott County, they include: No. of Units 4 32/6 152 24 56 136 56/12 30 26-28 50 Product Type Affordable Affordable/Subsidized Market Rate Affordable Affordable Market Rate Affordable/Subsdized Affordable Market Rate Subsidized Location Belle Plaine Savage Shakopee Belle Plaine Savage Savage Shakopee Shakopee Shakopee Scattered Developer T om Meger Evergreen Development Stuart Corporartion Bergstad Properties Mary T. Inc. Hartford Financial Evergreen Development Sand Companies Sand Companies Scott County HRA Status under const. under const. under const. planned planned planned planned planned planned planned . There are 152 units of market rate general occupancy housing currently under construction and an additional 198 to 200 units of market rate housing planned for development over the next few years. If all of the planned projects are built as planned, the remaining demand for market rate general occupancy housing through 2003 will likely be satisfied. . 32 units of affordable general occupancy housing are currently under construction; an additional 178 units are planned, resulting in excess demand for 86 units through 2003. . Six subsidized (MHOP) units are currently under construction and additional 62 units are planned, resulting in excess demand for 42 units through 2003. . Based on review of incomes of senior households in 1998 and 2003, we believe that there is an unmet need for an additional 55 senior subsidized units through 2003. The remaining demand, roughly 305 units, will be for market rate senior housing. However, some of these households will need affordable market rate housing options such as those offered at River City Apartments. . Based on the age of the senior base and the supply of market rate senior housing already in Scott County, both independent senior housing and housing with services (congregate and/or assisted living) will be needed. About 35 percent of the market rate demand (about 105 units) will be for service-intensive housing and the remaining demand (200 units) will be for independent senior housing. . Currently there are a number of senior projects either under construction or planned for construction over the next few years, they include: MAXFIELD RESEARCH, INC. 5 SUMMARY OF FINDfNGS No. of Units 24 24 42 24 30 29 Product Type Subsidized Subsidized Affordable/Market Rate Congregate/Optional-Services Assisted Living Assisted Living Location Belle Plaine Belle Plaine Savage Belle Plaine Belle Plaine Jordan Developer Belle Plaine Lutheran Home Belle Plaine Lutheran Home Scott County HRA Belle Plaine Lutheran Home Belle Plaine Lutheran Home Benedictine Health Services Status under const. planned planned planned planned planned . The two subsidized project either under construction or planned by the Belle Plaine Lutheran homes, if built, will likely satisfy the majority of the county's demand for subsidized senior housing over the next five years. . Between the two affordable market rate projects in planned by the Scott County HRA (River City and the planned Savage project) and the planned congregate/optional services project by the Belle Plaine Lutheran Home a large portion of the demand for independent senior housing will be satisfied. However, demand still exists for additional 82 units of independent senior housing in the County through 2003. . The two assisted living projects planned by the Belle Plaine Lutheran Home and Benedictine Health Services will satisfy S9 of the 105 units of demand for service-intensive housing in the County. Yet, excess demand still exists for another 46 units of this type of housing. However, the development of two assisted living facilities in communities as close as 10rdan and Belle Plaine could create a saturation of assisted living housing in the Belle Plaine- 10rdan market area in the short-term which could lead to extended absorption periods and excess vacanCIes. . A summary of the distribution of rental demand as well as recommendations for rental development in each community is discussed in the Conclusions and Recommendations section of the report. . It is important to note that the recommendations presented are to be used only as a guideline for development and should demand be unmet in anyone community it is possible that neighboring communities may be able to capture a portion of the stated demand. Furthermore, demand for rental housing is allocated only to incorporated municipalities because they have the necessary infrastructure in place for such high-density development. That is noUo say that demand for rental housing does not exist in the rural portions of the county, but that much lower-density would need to be developed because of the lack of infrastructure. 6 MAXFIELD RESEARCH, INC. ;:' .;:; ::::'lrml[~;iUiia1~;;~',_" ;i ,~l 1. tol.iill~.~_,' _.,a "'_ .~. r ... . .......~,;;A.~..0ilil; . ~~ _ ~",,_:, ,..:,UJh:......1~ .; .A. ....... CONCLUSIONS AJ.'ID RECOM.Y1ENDA nONS These projects have been very successful and a concept similar to this would do very well in Scott County. The recommended unit mix, sizes, and the rent structure are presented in Table 3S. A ceiling or market rent could also be applied to these projects with rents similar to those suggested for the adult/few services projects presented earlier in this section. TABLE 35 GENERAL RECOMME:"JDATIONS SUBSIDIZED SENIOR BUILDINGS SCOTT COUNTY November 1998 Unit Mix 60% Unit Tvpe IBR/IBA SizeiSa.Ft 625-650 Rent 30% of AGI Basic $275 30% of AGI Basic $375 40% 2BR/l.5BA 825-900 Source: Maxfield Research Inc. Summary of Recommended Rental Development in Scott County Table 36 summarizes our rental demand calculations for Scott County by type of project and by community. TABLE 36 RENTAL DEMAI"JD SL'MMARY SCOTT COUNTY 1998- 2003 Senior Market Rate Service-Intensive Independent Market Rate General Occupancy Moderate Rent Subsidized Shakopee 100-110 28-36 G 50-60 Prior Lake 316-324 66-72 24-36 45-50 Savage 36-42 28-36 40-45 Belle Plaine 16-24 30-36 0 50-65 0 Jordan 30-36 0 20-30 0 New Prague 0 18-24 16-24 0 24-30 340 300 110 135 170 Source: Maxfield Research Inc. Subsidized ~ o ~ o 55 MAXFIELD RESEARCH, INC. I'" - -) RENTAL HOUSfNG MARKET REVIEW Valley and Countryview Apartments have outdoor swimming pools. The remaining three projects have limited building amenities. Tax-Credit Proiects ~ Currently, there is only one affordable general occupancy rental project in Savage, the recently completed 48-unit Evergreen Pointe Townhomes. The project received funding through Minnesota Housing Finance Agency's (MHF A) Section 42 Low Income Tax Credit program and the Minneapolis Public Housing Authority's Metropolitan Opportunities Housing Program (MHOP). Five of the units have been designated as MHOP units and are owned by the Scott County Housing and Redevelopment Authority (HRA). Four of the five MHOP units are reserved for families displaced by the demolition of Minneapolis Public Housing units and the other unit is reserved for the Scott County Public Housing program. The tax credit portion of the building includes 16 two-bedroom units and 32 three-bedroom units. The two-bedroom units have monthly rents of $590, while the three-bedroom units rent for $679 per month. The units feature private entrances, one and one-half bathrooms, dishwashers, disposals, central air conditioning, and washer and dryer hook-ups. In addition, a detached garage is included in the rent. Subsidized ~ The five MHOP units of Evergreen Pointe consist of three, three-bedroom units and a (hearing-impaired compliant) four-bedroom unit. All MHOP units have rents based on 30 percent of the household's adjusted gross income. ~ The only other rental housing project in Savage with a deep subsidy is a 12-unit public housing project owned by the Scott County HRA. The project, which was built in 1980, consists of two-story, three-bedroom townhome-style units with private entrances and detached garages. Rents are based on 30.0 percent of the household's adjusted gross income (AGI). All of the units were occupied and the vast majority of the residents are families. Prior Lake Twelve general occupancy projects were surveyed in Prior Lake. These projects are summarized on Table 16. The 12 projects have 368 units and an overall vacancy rate of 1.4 percent. Market Rate ~ Nine of the 12 general occupancy projects surveyed in Prior Lake were market rate projects. Combined, they have a total of 280 units. ~ There were four units vacant among these projects at the time of the survey, a vacancy rate of 1.4 percent; this compares with a vacancy rate of 2.4 percent in the 1995 study. One project surveyed in the 1995 study was lost to fire and not included in this survey. 71 MAXFIELD RESEARCH, INC. . "':':""" ..E'~... :~-'..: ~~,:.:.L::";".,,,; . ----..1 . TAnu: 16 Gl<:NERAL OCCUI)ANCY IU:NTAL PROJECTS CITY OF PRIOR LAKE November 1998 Year No. of Project Name/Location Built Units Unit Mix/ Rents Vacancies Tenant Protile Comments/Amenities/Features Market Rate: Tower 1 I ill East 1987 68 18-lBR - $555 0 30% couples w/o children, 3-story elv. bldg. Wall-unit A/C, DW, disposals, 4680 Tower St. S.E. 8- \l DEN - $560-655 0 30% singles, 20% in.unit WID, balcony/ patio, ceiling fans, blinds. 30-2BR - $700 0 families, Some units have gas fireplaces. Security entry, 12-2+DEN - $740-920 1 20% seniors. party rm., outdoor pool, whirlpool, sauna, tanning beds, atrium, storage lockers, BBQ/picnic area, tot lot, underground heated pkg. w/car wash (incl. in rent). Priorwood 1984/87 48 8-IBR - $525 0 35% couples w/o chil- Four 12-unit, 2-story bldgs. Wall-unit A/C, DW. 16635 Five Ilawks A v. 16-2BR - $615-650 0 dren, 35% singles, disposals, oak cabinets & trim, vaulted ceilings, 24-2BR/Loft - $725-775 0 30% families. utility rooms. 2 bldgs. have in-unit WID - other 2 bldgs. have com. coin-op. laundry. Some units also have ceiling fans and some have skylights. Party rm., game rm., tot lot. 48 detached garagcs (incl. in rent). Brandel Arts. 1987 8 8-2BR $600* 0 Mostly couples w/o Two 1.5-story 4-plexes. Wall-unit A/C, common 16554-56 Franklin Trail children coin-op. laundry, detached garages included in rent. lIearthwood Apts. 1986 24 l6-lBR - $600 0 Mix of tenants 2-story bldg. Wall-unit A/C, DW, disp., 16516 Franklin Trail 8-2BR - $725 1 balcony/patio, storage room, blinds, wood-burning fireplaces. Security entry, com. coin-op laundry, tot lot, 24 detached garages incl. in rent. Towering Woods early-1980's 7 l-lBR-$575 0 2 couples w/ children, 1 & 2-story condominium project, 7 units rented. 4664 Tower Sa. 3-2BR - $650 0 2 singles the rest are Wall-unit A/C, DW, in-unit WID, disposals, 3-3BR -$750 0 couples. balcony/patio, walk-in closets in 3BRs. Private entrances, attached garages. A lien 4-plexes 1979 8 2-2BR - $525 0 Families 16558 / 16578 6-3BR - $555 0 Two 1.5-story 4-plexes. Central A/C, DW, blinds, Franklin Trail balconies. Com. coin-op laundry, dctached garages (incl. in rent). TJt,n...: 16 GENEI{AL OCCUPANCY RENTAL I)ROJl<:CTS CITY OF PRIOR LAKE November 1998 (Continued) Year No. of Project Name/Location Built Units Unit Mix/ Rents Vacancies Tenant Profile Comments/Amenities/Features Market Uate (continued): Tower Hill West 1970 51 6-0DR - $410 0 60% singles, 3-story e1v. bldg. Wall-unit A/C, DW, disposals, 4671 Tower St. 21-lDR - $510 0 20% seniors, balcony/patio, blinds, walk-in closets. Security 24-2BR - $610-650 0 20% couples w/o child. entry, tennis courts, coin-op laundry (ea. fir.), trash chutes. Undergmd heated pkg. incl. in rent. Orooksville Apts. late-60's 36 24-lDR - $475 0 Mix of tenants. 3-story bldg. Wall-unit A/C, DW, com. coin-op 16829 Toronto Av. S.E. 12-2BR - $615 0 laundry, balconies, 2BR units have 2BA's, 20 detached garages $30/mo. Parkwood Apls. 1960 30 lO-lDR - $500 50% families, Two 2.5-story bldgs. Wall-unit A/C, DW, 5160 -5200 I 60th St. S.E. 20-2DR - $550 40% singles, disposals, balconies, storage mlS., BBQ/picnic 10% seniors. area. Off-st. pkg. Markel Rate Suhtolal 21m 4 (1.4% vacancy rate) Tax-( 'rcdit: Kcsteral Village Apts. 12/95 48 32-2BR - $680 0 Mix of residents MIIF A tax-credit financed. Four 2-story 12-unit 16714-16720 Brunswick. 3/96 l2-3BR - $720 0 bldgs. Wall-unit A/C, DW, blinds, balcony/patio, com. coin-op. laundry (ea. bldg.), security entry, tot lot, 30 detached garages ($40 mo.). Significant no. of Section 8 residents. Subsidized: Highwood Townhomes 1980 36 24-2BR - 30% of AGI 0 Families w/ children. MHFAfinanced, HUD subsidized. Two-story 4716 Tower St. Market - $619 townhome units wi private entrances and 1O-3BR - 30% of AGI 0 basements. A/C sleeves, laundry hook-ups, com. Market - $663 coin-op laundry, off-st. pkg w/ plug-ins. One 2-4BR - 30% of AGI 0 tenant pays market rent, 35 receive rental Market - $ 707 assistance. Average rent paid is $250/1110, Project Name/Location. Subsidized (continued): Franklin Trail 4-plex Subsidized Subtotal Grand Total AGI = Adjusted Gross Income Year Built 1979 TA8LEI6 GENERAL OCCUPANCY RENTAL PROJECTS CITY OF PRIOR LAKE November 1998 (Continued) No. of Units Unit Mix/ Rents 4 40 368 Vacancies 4-3BR - 30% of AGl 5 . Estimated by Maxfield Research, project owner did not wish to disclose current rents. Source: Maxfield Research Inc. Tenant Profile Single-parents 25 - 35. (2.5% vacancy rate) (1.4% vacancy rate) Comments/Amenities/Features Scott County BRA project. Utilities and detached garage incl. in rent. '''!!l'''''''T~~;:'l:~_JJii.'i.,.,'.:I ',~_'" "'"7-~T ~ -:'..L.:r:;,_:.Iit.:'...u. ~ .m RENTAL HOUSING MARKET REVIEW ~ There are three market rate projects of 40 or more units in Prior Lake, Tower Hill East (68 units) and Tower Hill West (51 units) and Priorwood (48 units). In addition, there are three other projects of between 24 and 36 units. The remaining three projects surveyed consist of a 7- and two 8-unit projects. ~ Five of the projects surveyed (with a total of 155 units) were built during the 1980's, two projects (with a total of 59 units) were built during the 1970's, and two projects (with a total of66 units) were built during the 1960's. ~ Of the 280 market rate units surveyed, six were efficiency units, 98 had one bedroom (35% of all units), eight had one bedroom plus a den, 123 had two bedrooms (about 44% of all units), and 45 units (16%) had either two bedrooms plus a den/loft, or three bedrooms. ~ Monthly rents for one-bedroom units in Prior Lake ranged from $475 to $600 and averaged $525 per month. Two-bedroom units ranged from $525 to $725 per month and averaged $625 per month. Four projects had either two bedrooms plus a den, two bedrooms plus a 10ft, or three bedrooms. Rents for these units ranged from $575 to $920 per month and averaged roughly $745 per month. All of the efficiency units identified in the survey were located at one project, as were the eight one-bedroom plus den units. The efficiencies had rents of $41 0 per month, while the one-bedroom plus den units rented for between $560 and 5655 per month with an average of$630 per month. ~ Most of the projects surveyed in Prior Lake saw only modest rents increases over the last three years, approximately 5 percent. However, rents increased more significantly at Tower Hill East and particularly at the Hearthwood Apartments. At Tower Hill East rents increased between 7 and 14 percent depending on the unit, while rents at Hearthwood increased by 22 to 28 percent. ~ The amount and type of amenities found in rental projects in Prior Lake varied greatly from one project to another. Every project surveyed in Prior Lake includes air conditioned units and all but two projects have garages available. While most of the projects have detached garages, both Towering Hill East and West has underground heated parking and Towering Woods Condominiums has attached garages. About half of the projects have dishwashers in their units. All of the projects, with the exception of Towering Woods Condominiums and some of the units at Priorwood (which have in-unit washer and dryers), have coin-operated laundry facilities. Unique features included wood-burning fireplaces in the units at Hearthwood Apartments and vaulted ceilings at Priorwood Apartments. Towering Hill East includes the largest number of recreational amenities (outdoor swimming pool, whirlpool, sauna, and tanning beds). Tower Hill West is the only project that has tennis courts. A portion of the two-bedroom units and all of the two-bedroom plus 10ft units at Priorwood have one and three-quarters bathrooms, and some of the larger units at Tower Hill East and Tower Hill West have two full bathrooms. 75 MAXFIELD RESEARCH, L."JC. RENT AL HOUSING MARKET REVIEW Tax-Credit · There is only one tax-credit project in Prior Lake, the 48-unit Kestrel Village Apartments. The project consists of32 two-bedroom units with rents of$680 per month and 16 three- bedroom units with rents of$720 per month. The project is limited to households with incomes of 60% or less of the County median. The units include wall-unit air conditioners, dishwashers, mini and vertical blinds, and either balconies or patios. Each building has a security entrance and a common coin-operated laundry. In addition, there is a tot lot and 30 detached garages are available for $40 per month. As of November 1998, all of the units were occupied. There is a diverse mix of residents and a significant number of them receive Section 8 rental assistance. Subsidized · There are two subsidized general occupancy projects with a total of 40 units in Prior Lake; One unit was vacant at the time of the survey, a vacancy rate of2.5 percent. The largest subsidized project is Highwood Homes, a 36-unit townhome project built in 1980. The project consists of24 two-bedroom units, 10 three-bedroom units, and two four-bedroom units. Rents are based on 30% of the tenant's AGI up to the market rent of $619 for the two- bedroom units, $663 per month for the three bedroom units, and $707 for the four-bedroom units. The two-story units have private entrances, basements, air conditioning sleeves, and laundry hook-ups. The average rent paid by the tenants is $250 per month although one tenant pays the market rent. · The other subsidized general occupancy project in Prior Lake is Franklin Trail, a four-plex owned by the Scott County HRA. This project is subsidized through HUD's Public Housing program and tenants pay 30% of their AGI for rent. All four units have three bedrooms and detached garages. Jordan Data on the six largest general occupancy rental projects in 10rdan appears in Table 17. The projects have a total of69 units, all but two of which were occupied for a vacancy rate of2.9 percent. Of the six general occupancy projects in Jordan, four are market rate and two are subsidized. Like Belle Plaine, all of the rental units in Jordan are in smaller projects, the largest being 24 units. 10rdan has more subsidized than market rate general occupancy units. Market Rate · Only four market rate projects were identified in 10rdan, one small 3-unit project that was identified in the 1995 study has since been converted to ownership housing. The four market rate projects have 31 units, the smallest number of the six larger cities in the County. All of the units were occupied at the time of the survey. 76 MAXFIELD RESEARCH, INC. .. JOINT POWERS AGREEMENT THIS JOINT POWERS AGREEMENT (the "Agreement") has been entered into as of the 1st day of August, 1996, by and between the SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision of the state of Minnesota (the "Scott County Authority"), and the CITY OF SAVAGE ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision of the state of Minnesota (the "Savage Authority" and, together with the Scott County Authority, the "Authorities"), pursuant to Minnesota Statutes, Section 471.59 and Chapter 469. 1. Statement ofPm:pose and Powers to be Exercised. There is a need within the City of Savage for the acquisition of certain real property located within the City which may be needed for the development of low and moderate income housing, or may require redevelopment, or both. Accordingly, the powers to be exercised jointly under this Agreement are those common or substantially similar powers conferred upon the Scott County Authority as a county housing and redevelopment authority and upon the Savage Authority as an economic development authority, pursuant to Minnesota Statutes, Chapter 469, including, without limitation, Sections 469.012, Subd. 1 (7), and 469.017, to the extent necessary to provide for the acquisition of such real property, the development or redevelopment thereof and the provision of low and moderate income housing development projects. 2. Method of Achieving PUl:pose: Manner of Exercising Power. (a) The powers to be jointly exercised by the Authorities hereunder generally shall be exercised by the Savage Authority, provided however, that specific development activities from time to time, including, without limitation, the acquisition of real property and the development of housing constituting a housing development project, shall be exercised by the Scott County Authority pursuant to this agreement with prior approval of the Savage Authority, and, to the extent deemed necessary by the Scott County Authority, following execution and delivery of additional written agreements from time to time made between the Authorities relating to specific activities. It is the intent of the parties that any governmentally owned housing development project would be developed, owned and operated by the Scott County Authority. (b) Initially, the Scott County Authority shall use its best efforts to acquire certain real property identified by the Savage Authority as anticipated to be used for housing purposes, or otherwise determined to be appropriate for acquisition pursuant to Section 469.012, Subd. 1 (7), or other applicable provisions of Chapter 469, but only from and to the extent that moneys for such / acquisition and related costs are provided to the Scott County Authority by the Savage Authority. Following such acquisition, the Savage Authority shall provide funds, from time to time, to pay costs of the Scott County Authority to carry any acquired property, including, without limitation, payments for taxes, insurance, maintenance and repair. A condition precedent to the Scott Joint Powers Agreement, A-l 1431450 County's obligation to acquire any particular real property hereunder shall be the execution and delivery by the parties hereto, of an agreement acceptable to each of them, relating to (a) the division of responsibilities for ongoing management and maintenance of such property following acquisition, and (b) the terms and conditions of any conveyance of such property to the Savage Authority . 3. Source and Contribution of Funds. Except as otherwise agreed by the parties hereto, the source of funds for the development and redevelopment of the Project and any other joint exercise of powers undertaken by the Authorities pursuant to this Agreement shall be: (a) as to the acquisition and maintenance of real property by the Scott County Authority pursuant to paragraph 2(b), moneys contributed by the Savage Authority; (b) as to other expenses incurred in connection with the development of housing or the redevelopment of real property, amounts from time to time identified by the Authorities in writing; and, as to the development of housing pursuant to any Housing Development Project undertaken in Savage by the Scott County Authority, the proceeds of any bonds issued by the Scott County Authority to finance all or any portion of the development or redevelopment o,f such project; and any other sources from time to time pledged by either of the parties hereto; (c) as to the operation, maintenance, repair and replacement of any housing development project from time to time, revenues generated by the Project and any other amounts from time to time pledged by either of the parties hereto; and (d) as to any of the foregoing costs, other sources from time to time pledged in writing by the parties hereto. Notwithstanding the foregoing, nothing herein shall obligate either of the Authorities to contribute other moneys with respect to the development or redevelopment of real property or the undertaking of a housing development project pursuant to this Agreement. 4. Budllet and Disbursements. Each Authority shall develop budgets relating to the activities to be undertaken by it pursuant to this Agreement. Notwithstanding any other provision hereof" moneys and funds shall be held, applied, disbursed, and accounted for in such manner as provided in any bond or other financing documents, or otherwise as the Authorities may determine to be appropriate. Any surplus funds received or generated by or in connection with actiVIties to be undertaken by the Savage Authority shall be and remain the property of the Savage Authority. Any surplus funds received or generated by activities to be undertaken by the Scott County Authority shall be and remain the property of the Scott County Authority and shall be used by the Scott County Authority to promote housing or commercial development activities within the City of Savage, except as otherwise expressly agreed in writing by the parties hereto. =- ::;'~~~lIf~,it.- .,-' .' "... ~......... ~ ;.. """'- ....... .,....c , .'_.......,"'"]'1:::: ::. .~, _''':''''-'''It'_.~'J~,'' :::- 5. Liability for Debts and Obli~ations. Neither of the Authorities shall have the power hereunder to do any act or thing the effect of which is. to create a charge on or lien against the property or revenues of the other Authority. 6. Term of Aweement: Termination. This Agreement shall remain in effect until the later of (a) the repayment in full of any financing or refinancing issued by either of the Authorities for the benefit of activities undertaken pursuant to this Agreement, (b) September 1, 1999, and (c) 30 days following notice of termination delivered by either party hereto to the other. 7. Distribution of Assets Upon Termination. Upon termination of this Agreement, any property acquired as the result of this Agreement and any surplus moneys (a) resulting from activities to be undertaken by the Savage Authority shall be and remain the property of the Savage Authority, and (b) resulting from activities to be undertaken by the Scott County Authority shall be and remain the property of the Scott County Authority to be used by the Scott County Authority for housing or commercial development activities within Savage, except to the extent otherwise expressly agreed in writing by the parties hereto. 8. Amendments. This Agreement, including any attachments, exhibits or prior amendments, may be amended, at any time and from time to time, by the written consent of each of the Authorities. IN WIlNESS WHEREOF, the Scott County Authority and the Savage Authority have each caused this Agreement to be executed on its behalf by their respective authorized officers have each caused their official seal, if any, to be affixed hereto, all as of the day and year first above written. scon COUNTY HOUSING AND REDEVELOPMENT AUTIlORITY Bits~~~lff~~J~ . (SEAL) i'fi1f lIl1D m~.mSI:,,:.,_"'i :11 !!I ;1ll:.":" .::','; .. .1:. :!:."'1CIIl =: ;!IT ;1::~'':''':;U.Jj~~]I ~[ ~ SAVAGE ECONOMITC DEVELOPMENT AUTHORITY (SEAL) PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY PRESENTER: DATE: 7B REPORT ON RESULTS OF MAY 13,1999 DOWNTOWN REDEVELOPMENT WORKSHOP JANE KANSIER, PLANNING COORDINATOR MAY 17, 1999 AGENDA ITEM: SUBJECT: DISCUSSION: On Thursday, May 13, 1999, Hoisington Koegler Group, Inc., hosted a downtown planning workshop at the Prior Lake High School cafeteria. The purpose of this workshop was to take public input and use this input as the basis for a community based planning effort in the downtown redevelopment plan. The staff will provide an oral presentation on the results of this workshop. L:\99FILES\99EDA \RP5177B.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY PRESENTER: DATE: 7C CONSIDER 2000-2004 CAPITAL IMPROVEMENT PROGRAM DONALD RYE, PLANNING DIRECTOR MAY 17, 1999 AGENDA ITEM: SUBJECT: INTRODUCTION: Each year, the City of Prior Lake adopts a Capital Improvement Program (CIP) detailing projects and the potential funding sources for the next 5 years. The CIP is reviewed by the various City boards and commissions for consistency with the City's adopted plans and goals. The City Council then makes the final decisions on the CIP. DISCUSSION: The summary describes the CIP process and the funding sources available to the City and expected to be used in paying for the individual projects. As in past years, the primary constraint is the availability of money. In previous years, the City share of County road projects took the lions share of City capital improvement funds. The proposed CIP still has a heavy emphasis on roads and streets, but the focus during the next 5 years is on Highway 13 intersection improvements and local street reconstruction. During the first two years of this program, these street projects are estimated to cost $4,935,000 out of a total capital budget of $6,609,000. The EDA's function is to review the proposed projects, determine whether they make sense from the perspective of economic development goals and objectives. The EDA may also make specific recommendations about specific projects in the CIP or about projects not in the current CIP which the EDA feels would better achieve the economic development goals. The EDA does not need to feel constrained to restrict its consideration only to those projects contained in the propose CIP. Any recommendation for changes to the CIP should L:\99FILES\99EDA \RP5177C.DOC 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 A" EQUAL OPPORTUNITY EMPLOYER ISSUES: ACTION REQUIRED: REVIEWED BY: L:\99FILES\99EDA \RP5177C.DOC indicate which particular goal or policy is being advanced by the recommended project. The thing to keep in mind is that all projects are competing for a limited amount of money and the CIP is limited to those projects with the highest priority. Please give this your careful consideration. The EDA should review and discuss the attached CIP, particularly as it relates to EDA projects and activities. Motion and second to recommend changes to the draft CIP as the EDA determines. Prank Boyles, City Manager CAPSULE PROJECT SUMMARY 2000 CIP PROJECTS Project Description Project Amount Fire Department 1. Bunker Turnout Gear 6,000.00 Park Department (Development) 2. Neighborhood Park Resilient Surfaces 3. Oakland Beach/Willows Basketball Courts 4. Park Appurtenant Equipment 5. Memorial Park Picnic Shelter 6. Sand Point Beach Parking Lot Lighting 7. Neighborhood Park Playgrounds tIm.iW 8. Glynwater Financing 6,000.00 City Cost Tax Impact QQll2L Percentage o.b. 8,000.00 8,000.00 c.p. 10,000.00 10,000.00 c.p. 10,000.00 10,000.00 c.p. 16,000.00 16,000.00 c.p. 18,000.00 18,000.00 c.p. 103,000.00 103,000.00 c.p. 22,000.00 22,000.00 c.p. Public Works (Buildings/PIanO 9. Lift Station Renovation 10. Water Tower Painting 60,000.00 250,000.00 (Improvements) 11. Trunk Watermain (Fountain Hills development) 12. Linden Circle Bituminous Paving 13. Main Avenue Street Lights 14. Fish Point Road/Fairlawn Shores Trail Overlay 30,000.00 75,000.00 100,000.00 300,000.00 15. Oak Ridge/Pixie Point Reconstruction 1,195,000.00 16. TH 13 Intersection Imp. (Commerce/Boudins) 1,750,000.00 Water Resources (JmDrovement~) 17. Drainage Improvements 15,000.00 18. Storm Sewer Outlet Dredging (Green Hgts Trl) 15,000.00 19. Water Quality Pond (Center Road) 15,000.00 20. Storm Water Pond Dredging (Boudins) 30.000.00 Totals ... 4,028,000.00 Financing Source Summary Project Amount $ Project Tax Levy 897,000.00 o.b. Operating Budget 6,000.00 u.f. Sewer & Water Utility Fund 125,000.00 s.w. Storm Water Utility Fund 75,000.00 c.p. Capital Park Fund 187,000.00 c.s. Collector Street Fund 400,000.00 t.r. Trunk Reserve Fund 215,000.00 m.s. Municipal State Aid 600,000.00 s.a. Special Assessments 673,000.00 I.g. Intergovernmental 850.000.00 Totals ... 4,028,000.00 8 60,000.00 125,000.00 125,000.00 30,000.00 75,000.00 100,000.00 180,000.00 120,000.00 717,000.00 478,000.00 850,000.00 600,000.00 300,000.00 t.r. t.r. u.f. t.r. s.a. c.s. 4.39 0.52% s.a 17 .48 2.09% s.a. Lg. m.s. c.s. 15,000.00 S.w. 15,000.00 S.w. 15,000.00 S.w. 30.000.00 s.w. 4,028,000.00 Tax Impact QQllgr Percentaae $21.87 2.61% CAPSULE PROJECT SUMMARY 2001 CIP PROJECTS City Cost Project Description Project Amount Financing Tax Impact QQllaL Percentage Fire Department 1. Bunker Tumout Gear 7,000.00 7,000.00 o.b. Park Department (Development) 2. Neighborhood Park Resilient Surfaces 8,000.00 8,000.00 c.p. 3. Park Appurtenant Equipment 10,000.00 10,000.00 c.p. 4. Memorial Park Fencing 10,000.00 10,000.00 c.p. 5. Neighborhood Park Playgrounds 60,000.00 60,000.00 c.p. tIm.iW 6. Fish Point, Island View & Sand Point 35,000.00 35,000.00 c.p. Public Works (Buifdinas/Plan(J . 7. Lift Station Renovation 60,000.00 60,000.00 t.r. 8. Water Tower Painting 250,000.00 125,000.00 t.r. 125,000.00 u.f. (Improvements) 9. Trunk Watermain (Deerfield development) 171,000.00 171,000.00 t.r. 10. Trunk Watermain (CSAH 21 from Carriage Pkwy to 42) 200,000.00 200,000.00 t.r. 11. 150th Street Reconstruction 765,000.00 196,000.00 4.70 0.55% 306,000.00 s.a 263,000.00 m.s. 12. Pixie Point - Green Oaks Street Reconstruction 925,000.00 555,000.00 13.32 1.55% 370,000.00 s.a Water Resources (fmorovements) 13. Storm Water Pond Dredging (Hampton Pond) 20,000.00 20,000.00 S.w. 14. Lake Bank Stabilization (Pike Lake Trail) 60,000.00 20,000.00 g.f. 40.000.00 s.w. Totals ... 2,581,000.00 2,581,000.00 Financing Source Summary Project Amount Tax Impact QQllgr Percentage $ Project Tax Levy 751,000.00 $18.02 2.10% o.b. Operating Budget 7,000.00 u.f. Sewer & Water Utility Fund 125,000.00 gJ. Grant Funding 20,000.00 s.w. Storm Water Utility Fund 60,000.00 c.p. Capital Park Fund 123,000.00 t.r. Trunk Reserve Fund 556,000.00 m.s. Municipal State Aid Fund 263,000.00 5.a. Special Assessments 676.000.00 Totals ... 2,581,000.00 9 CAPSULE PROJECT SUMMARY 2002 CIP PROJECTS City Cost Project Description Project Amount Financing Tax Impact QQllaL Percentage Fire Department 1. Bunker Turnout Gear 8,000.00 8,000.00 o.b. Park Department (Development) 2. Neighborhood Park Resilient Surfaces 8,000.00 8,000.00 c.p. 3. Park Appurtenant Equipment 10,000.00 10,000.00 c.p. 4. Neighborhood Park Playgrounds 60,000.00 60,000.00 c.p. ~ 5. Deerfield Development 60,000.00 60,000.00 c.p. Public Works (Buildings/Plan() 6. Lift Station Renovation 60,000.00 60,000.00 t.r. 7. Municipal Well 350,000.00 350,000.00 t.r. (lmDrovements) 8. Carriage Hills Road (Knob.HiII east extension) 175,000.00 175,000.00 c.S. 9. Trunk Watermain (CSAH 42 from 21 to McKenna) 185,000.00 185,000.00 t.r. 10. Frog Town Area Reconstruction 935,000.00 560,000.00 13.16 1.50% 375,000.00 s.a 11. TH 13 Intersection Imp. (15Oth Street) 700,000.00 600,000.00 Lg. 100,000.00 m.s. Water Resources (Improvements) 12. Storm Drainage Improvements 40,000.00 40,000.00 S.w. 13. Storm Water Pond Dredging 40.000.00 40.000.00 s.w. Totals ... 2,631,000.00 2,631,000.00 Financing Source Summary Project Amount Tax Impact QQJJar Percentage $ Project Tax Levy 560,000.00 $13.16 1.50% o.b. Operating Budget 8,000.00 s.w. Storm Water Utility Fund 80,000.00 c.p. Capital Park Fund 138,000.00 c.s. Collector Street Fund 175,000.00 t.r. Trunk Reserve Fund 595,000.00 m.s. Municipal State Aid 100,000.00 s.a. Special Assessments 375,000.00 I.g. Intergovernmental 600.000.00 Totals ... 2,631,000.00 10 CAPSULE PROJECT SUMMARY 2003 CIP PROJECTS City Cost Project Description Project Amount Financing Tax Impact QQ1lar. Percentage Fire Department 1. Bunker Turnout Gear 8,000.00 8,000.00 o.b. (Buildings & PIanO 2. Satellite Fire Station 750,000.00 750,000.00 g.o. Park Department (DeveloDmen() 3. Neighborhood Park Resilient Surfaces 8,000.00 8,000.00 c.p. 4. Park Appurtenant Equipment 10,000.00 10,000.00 c.p. 5. Neighborhood Park Playgrounds 60,000.00 60,000.00 C.p. t:rr:.aiW 6. Jeffers Pond Development 40,000.00 40,000.00 c.p. Public Works (/3uildingsIPlanO 7. Lift Station Renovation 60,000.00 60.000.00 t.r. (lmprovements.J 8. Shady Bch Trl/Fish Point ~d W Reconstruction 1,185,000.00 711,000.00 16.40 1.85% 474.000.00 s.a Water Resources (lmDrovements.J 9. Storm Drainage Improvements 40,000.00 40,000.00 S.w. 10. Storm Water Pond Dredging 40.000.00 40.000.00 S.w. Totals ... 2,201,000.00 2,201,000.00 Financing Source Summary Project Amount Tax Impact QQllar Percentage $ Project Tax Levy 711,000.00 $16.40 1.85% o.b. Operating Budget 8,000.00 s.w. Storm Water Utility Fund 80,000.00 c.p. Capital Park Fund 118,000.00 t.r. Trunk Reserve Fund 60,000.00 s.a. Special Assessments 474,000.00 g.o. G.O. Referendum Bonds 750.000.00 Totals ... 2,201,000.00 11 CAPSULE PROJECT SUMMARY 2004 CIP PROJECTS City Cost Project Description Project Amount Financing Tax Impact Q.Q11aL Percentage Fire Department 1. Bunker Turnout Gear 8,000.00 8,000.00 o.b. Park Department (Deve/oomen(l 2. Neighborhood Park Resilient Surfaces 8,000.00 8,000.00 c.p. 3. Park Appurtenant Equipment 10,000.00 10,000.00 c.p. Public Works (Buildings & Plant) 4. Lift Station Renovation . 60,000.00 60,000.00 t.r. 5. Municipal Well 350,000.00 350,000.00 t.r. 6. Water Filtration Plant 6,000,000.00 6,000,000.00 w.r. (Improvements) . 7. Trunk Watermain (Fish Point Rd Ext. to CSAH 21) 50,000.00 50,000.00 t.r. 8. Trunk Watermain (CSAH 42 from CSAH 83 to W. Limit) 127,000.00 127,000.00 t.r. 9. Gateway Shores Street Reconstruction 1,180,000.00 708,000.00 16.00 1.77% 472,000.00 s.a 10. TH 13 Intersection Imp. (CSAH 23/Five Hawks) 1,150,000.00 495,000.00 Lg. 400,000.00 m.s. 255,000.00 c.s. Water Resources (Imorovements.l 11. Storm Drainage Improvements 40,000.00 40,000.00 s.W. 12. Storm Water Pond Dredging 40.000.00 40.000.00 s.w. Totals ... 9,023,000.00 9,023,000.00 Financing Source Summary Project Amount Tax Impact QQ!lar Percentage $ Project Tax Levy 708,000.00 $16.00 1.77% o.b. Operating Budget 8,000.00 s.w. Storm Water Utility Fund 80,000.00 c.p. Capital Park Fund 18,000.00 c.s. Collector Street Fund 255,000.00 t.r. Trunk Reserve Fund 587,000.00 m.s. Municipal State Aid 400,000.00 5.8. Special Assessments 472,000.00 I.g. Intergovernmental 495,000.00 w.r. Water Revenue Bonds 6.000.000.00 Totals ... 9,023,000.00 12 ECONOMIC DEVELOPMENT AUTHORITY CITY OF PRIOR LAKE, MN. MEETING DATE: AGENDA #: PREPARED BY: MAY 17, 1999 8A DONALD RYE, PLANNING DIRECTOR AGENDA ITEM: CONSIDER MEGABIT COMMITTEE FINAL REPORT DISCUSSION: Following the meetings with Triax Cable and Scott-Rice Telephone Company, it was agreed that Bob Jader and Mark Cramer would develop a final report on the Committees actions. Bob lader has indicated he will provide an oral report at the meeting. RECOMMENDED MOTION: Motion to accept report REVIEWED BY: Frank Boyles, City Manager 162~~~~~'~\OPrl~~tOOF, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY CITY OF PRIOR LAKE, MN. MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: MAY 17, 1999 8B DONALD RYE, PLANNING DIRECTOR CONSIDER APPROVAL OF PROPOSAL FOR BUSINESS VISITS BY EDA MEMBERS DISCUSSION: History In April, the EDA adopted modifications to the 1999 goals. One of these goals related to business retention efforts and one of the specific actions was to arrange for two EDA members to interview all Business Park businesses and other large businesses in the City for retention purposes. Discussion Staff has identified 19 businesses which meet the criteria. In addition to the 13 businesses in the Business Park, other large employers include Norex, County Market, Prior Lake State Bank, Marquette Bank, US Bank and Edina Realty. It was suggested that two EDA members interview each business. If this were done, each team would have 9 or 10 interviews to conduct. If individual EDA members were to conduct the interviews, each member would no more than four interviews. The EDA may wish to consider this alternative. The EDA should also review the businesses which have been identified and determine whether the list should be expanded, reduced or left as is. Once the EDA has determined which businesses they wish to approach and whether one person or two will conduct the interview, staff can determine when members are available for the interview and schedule the interview with the businesses. ACTION REQUIRED: Provide direction to staff as to which businesses to interview and whether one member or two will conduct the interview and direct staff to set up the interview schedule. RECOMMENDED MOTION: None required REVIEWED BY: Frank Boyles, City Manager 16200:~~ Creek Ave. S.E., Prior Lake, Minnesotat5372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM: SUBJECT: 8C CONSIDER APPROVAL OF PROCEDURE FOR AUTHORIZING EXPENDITURE OF EDA FUNDS JANE KANSIER, PLANNING COORDINATOR MAY 17,1999 PRESENTER: DATE: INTRODUCTION: With the preparation of the Downtown Redevelopment Plan, the EDA will be asked to authorize the expenditure of ED A funds. It has come to our attention that there is no procedure in place for this authorization. DISCUSSION: It is important that the EDA maintain a public record of expenditure authorizations. We would therefore suggest the following procedure. Invoices for payment will be submitted to the staff. At its regular meeting, the EDA will be asked to review and approve a list ofthe submitted invoices. Following this approval, the City Finance Director will issue a check in payment of the invoice to the appropriate party. A list of the accounts payable will then be attached to the minutes of the EDA meeting and approved at the next meeting. ACTION REQIDRED: Motion and second to adopt the above described procedure for the authorization of payment by the EDA. REVIEWED BY: L:\99FILES\99EDA \RP5178C.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTIJNlTY EMPLOYER PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY PRESENTER: DATE: 9A REVIEW 1999 ECONOMIC DEVELOPMENT AUTHORITY GOALS AND OBJECTIVES DONALD RYE, PLANNING DIRECTOR MAY 17, 1999 AGENDA ITEM: SUBJECT: DISCUSSION: Attached are the 1999 Economic Development Authority Mission Statement and Goals for review and discussion. L:\99FILES\99EDA \RP5179A.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY PRIOR LAKE, MINNESOTA MISSION STATEMENT PROMOTE THE BUSINESS ASSETS OF PRIOR LAKE AND FACILITATE A DIVERSIFIED TAX BASE 1999 GOALS Develop a proactive strategy for future economic development activities which will build on the efforts to date and further enhance the City's reputation as a place to do business. Continue to explore redevelopment opportunities in the Downtown area. . Prepare a Downtown Redevelopment Plan, including appraisals, marketing and funding alternatives, and initiate the implement of this plan, including marketing and the streetscape public improvements. Insure the study addresses the old library and other City property Downtown as well as public relations necessary for effective redevelopment. (October) . Support private as well as public redevelopment plans in the Downtown area. ( Ongoing) Develop a plan to capitalize on traffic generated by Shakopee Mdewakanton Dakota Community and The Wilds. . Revise and advertise the improved access to Prior Lake from I-35 via CSAH 21, bringing traffic through downtown Prior Lake. (Completed) . Develop promotional materials cooperatively and create a dialogue with the Mystic Lake Casino and The Wilds Golf Course. Expand Business Office Park . Review EDA Tax Increment Policy to assure it applies to the Deerfield expansion of the Business Park. (Depends on submittal from developer) Inventory and review existing commercial and industrial properties and develop a position on development possibilities. . Develop a recommendation on extension of utilities to old industrial park. (September) . Explore the relationship between housing availability and business development. (October) L:\ECONDEV\EDA \EDAGOALS\99UPDA TE.DOC I 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER · Convert Tax Increment Policy to a more general document which addresses other financial incentives. (June) Explore redevelopment opportunities for the Priordale MalllPark Nicollet site to facilitate expeditious redevelopment/development. · Work with private sector developers to complete the Ring Road from Franklin Trail to Tower Street. (November for Official Map) · Work to identify specific properties in the Priordale Mall area for redevelopment/development. Initiate business retention efforts. · Arrange for two EDA members to interview all Waterfront Passage businesses and other large businesses in the City for retention purposes. (June) · Have the Chamber of Commerce provide a Business Retention report to the EDA when interviews are complete. (July and August) · Cooperate with the Chamber of Commerce to follow up on any issues arising from their interviews. (July and August) Recruit new business. · Discuss recruitment at joint meeting with Planning Commission and City Council. (April) · Identify the size of businesses in Prior Lake is most likely to attract. (July) · Identify owners of businesses of the size who live in Prior Lake. (July) · Conduct an open house for the business owners identified above. (August) · Contact suppliers to businesses and Mystic Lake to advise them of opportunities in Prior Lake. (July) Miscellaneous · Review existing objectives against the Strategic Plan to assure consistency and comprehensiveness. (May) · Establish a multi-media effort to deliver EDA/City "pro-business" message. (September) · Establish a Web page on the Internet. (May - June) April 19, 1999 L:\ECONDEV\EDA \EDAGOALS\99UPDA TE.DOC 2