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HomeMy WebLinkAboutMarch 4, 1996 ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA March 4,1996 5:30 p.m. I. Call to Order II. Pledge of Allegiance III. Presentations IV. Old Business A. Election of Officers B. Appointment of Liaisons C. Approval of Contract with Advance Resources for Development V. New Business A. Presentation of Development/Redevelopment Activities B. Discussion on Wensmann Parcel Concept C. Annexation VI. Adjourn - 7:00 p.m. EDAA0304.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 DATE: FRANK BOYLES, CITY MANAG~~ '\ MARCH 4 ECONOMIC DEVELOP ENT AUTHORITY REPORT MARCH 4, 1996 PREPARED BY: SUBJECT: This agenda report is intended to address each of the business items on the March 4th Economic Development Authority Agenda. 1. Old Business A. Appointment of Officers The Economic Development Authority Bylaws (page 3 attached) as approved by the City Council at their February 20, 1996 meeting provides that the EDA will appoint a president, vice president and treasurer from amongst its membership. The Bylaws also indicate that the city manager or his designee may act as secretary. The Economic Development Authority should, by motion, second and vote, approve appointments to the positions of president, vice president, treasurer and secretary. B. Appointment of Liaison As part of the staff recommendations for improving the City's economic development tools, I recommended that Paul Viereck be appointed by the Economic Development Authority as liaison between the EDA and downtown businesses. The rationale for such an appointment was to continue the important linkage between the two bodies which has only been available since Mr. Viereck volunteered for this task under the old Business Development Committee format. Paul has agreed to perform the same function for the Economic Development Authority. As the EDA's liaison, Mr. Viereck can be expected to: 1. Attend EDA meetings as appropriate to provide reports and input received from businesses in the community and downtown businesses specifically. 16200 ~B~~€ek Ave. S.L Prior Lake. Minnesota 55672-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY E"-'1PLOYER 2. Act as a positive spokesperson for the City and its economic development efforts with Prior Lake businesses or others who may consider developing within the community. C I Approval of Contract with Advance Resources for Development The City Council deferred action on this proposed contract from their February 20th meeting to the March 4 Economic Development Authority meeting. The purpose of the deferral was to afford the Authority an opportunity to review revisions to the contract which had been recommended by the City Attorney but which were not incorporated in the original document. A secondary intent was to provide the Authority with the opportunity to discuss with Mr. Guenette the provisions of the contract and the work undertaken on the City's behalf to date. Roger Guenette will be present at the meeting and available to respond to questions the Authority may have. I recommend adoJ3tion of th~t. n~w contract ......\ by the EDA to be confirmed by the City Council on the Consent .genda at the . JJ! March 4th meeting. . I A W)1A ttdu New Business: 12 D . 2. A. Development and Redevelopment Activities Over the last three or four months discussions have taken place involving between 5 and 10 parties of interest in the "Drive-In Theater" and "Priordale Mall" properties. Discussions have occurred between City staff members, including Mr. Guenette, and potential buyers and developers of the two properties. The same city representatives have met with the potential developers together encouraging them to develop a coordinated plan for the two sites which will serve the City's needs in the future, meet our development standards and be economically feasible. In addition, Mr. Guenette, sometimes alone, sometimes with other members of the staff, has met with existing property owners in this area to determine the degree of cooperation which can be expected in the event a redevelopment takes place on the Drive-In Theater site, including other existing businesses such as the body shop, towing company, Hollywood, Velishek Auto, and EZ Stop. The purpose of this agenda item is to allow Mr. Guenette the opportunity to bring members of the Economic Development Authority up to date regarding these negotiations and the approach we are taking with respect to these potential developments. (See attached map for reference.) B. Review of Wensmann Property Concept Last year Gene Happi of EFH Construction outlined with the Council a proposed concept plan for the 40 acre Wensmann parcel which would have provided for approximately 279,000 square feet of office/warehouse EDAOJ04.DOC development. The concept was in~ended to preserve wetland and trees while optimizing the amount of office/warehouse square footage. The Council reviewed the concept plan concurring with its principals, including the fact that the building exteriors must meet or exceed those found in the Katun building in Bloomington. Mr. Happi indicated that he would further refine the plan and that based upon these refinements cost estimates would be prepared. Two weeks ago, Mr. Happi contacted me indicating that four additional alternative concepts had been prepared by Westwood planning, each of which address the issues of wetland, tree preservation, building size and total square footage in different ways. Attached for Authority information is a spread sheet which shows for the original four concepts and the impact which each concept has in each of these categories. We agreed at the meeting that the staff would spend additional time reviewing the concepts and come up with its preferred option or mix of options. Don Rye, Larry Anderson and I have had the opportunity to review the concepts. We believe that a blending of Concepts Band D best accomplishes the City's and developer's objectives. Don met with Gene Happi and Tim Erkilla to discuss the staff alternative. They liked the proposed revision and are in the process of preparing a preliminary plat for the site. Don Rye will be present at the EDA meeting to provide the Authority with an overview of the modified concept and its attributes. Larry Anderson will talk about estimated infrastructure CO!;ts. Roger Guenette will discuss tax increment financing issues. C. Annexation Don, Larry and I have preliminarily discussed the potential for annexation of various areas adjacent to the community. The attached graphic shows three areas which, based upon our preliminary evaluation, appear to be most appropriate for annexation. Our rationale for proposing these areas is as follows: 1. All three areas are within Spring Lake Township with which we have an orderly annexation agreement. 2. The proposed areas for annexation are consistent with the Township Board's request that the City not "cherry pick" the best parcels and leave less desirable parcels to them. 3. Each of the parcels have or will have sewer and water stubbed to its boundaries. 4. The land contemplated for annexation fulfills City needs including extension of office park, additional property for education facilities and a logical addition to the City from a perspective of roadway access or stormwater drainage. EDAOJ04.DOC Additional research is needed, however. Larry and Don will be working together to put together a "proof of development overlay" over each of the areas to determine if, given the topography, City infrastructure, including sewer, water and streets can be extended with reasonable economy to each of the prospective areas. The proof of development will include a zoning overlay for each of the properties as well. . The purpose in having the Authority review this proposal is to "get a sense" of the Authority's position so that we know how to proceed. It would be appropriate to discuss each of these areas separately. EDA0304. DOC EuPt D "{ L ~\v0S .Hl\w-.. T , A~\ q\ ~Io 3. The Board of Commissioners may exercise all powers of the Authority and do all such lawful acts and things as are authorized pursuant to Minnesota State Statutes, the Enabling Resolution or pursuant to these Bylaws. 4. All vacancies in the Board of Commissioners, whether caused by resignation, termination of Council members, death or otherwise, shall be filled by City Council appointment in the same manner as City Council vacancies are filled. ARTICLE FOUR - MEETINGS 1. The Authority shall meet monthly at the location set forth in Article Two, Section 4 or at such other place as the Board may establish from time to time. At least three (3) days written notice of such meetings shall be given to the Commissioners. Meetings may be held immediately preceding, during or after the City Council meeting. 2. Special meetings of the Board of Commissioners may be called at any time by the President, or, in his/her absence, by the Vice President or by any two (2) Commissioners. Notice of special meetings of the Board of Commissioners shall be given to each Commissioner at least three (3) days prior to the meeting via telephone, telegram, letter or personal contact and shall state the time and place of the meeting. Notice of a special meeting shall comply with the requirements of the Minnesota Open Meeting Law. 3. Three commissioners shall constitute a quorum for the purpose of conducting business. Less than a quorum may, however, adjourn any meeting, which may beheld on a subsequent date without further notice, provided a quorum be present at such deferred meeting. 1. The officers of the Authority shall be a President, a Vice President, a Secretary and a Treasurer who shall be elected to a one year term and shall hold office until their successors are elected and qualified. The President, Vice President, and Treasurer shall be members of the Board of Commissioners. The City Manager or his designee may serve as the Secretary. 2. The President shall preside at all meetings of the Authority, shall sign or counter- sign all certificates, contracts and other instruments of the Authority as authorized by the Board of Commissioners, shall make reports to the Board of Commissioners, and shall perform all such other duties as are incident to the office or are properly required by the Board of Commissioners. 3. The Vice President shall exercise all the authority and fulfill all the functions of the President during any absence or disability of the President. EDABYLAW DOC .. 3 - FEB-19-1996 12:45 FROM ADVANCE INC. TO PR I OR LAKE-C ITY P. 02 )/ tI 1'0 J- tetM I <2-. AGREEMENT BETWEEN CITY OF PRIOR LAKE AND ADVANCE RESOURCES FOR DEVELOPMENT, INC. WHEREAS, this AGREEMENT is made and anterod into this ~ day of February, 1996, by and between the City of Prior Lake, 16200 Eagle Creek Ave. S.E., Prior Lake, MN 55372-1714 (hereina1ter referred to as the 'CITY; and Advance Resources for Development. Inc., a Minnesota Corporation With offices at 201 N. Broad, Suite 310, Mankato, MN 56001 (hereinafter referred to as the .CONSULTANTj; and WHEREAS, THE CITY desires to engage the ser.rices of the CONSULTANT to furnish technical and professional assistance in connection with the Highway 13 Redevelopment Project (the .PROJECTj. These services shall include 1) Financial analysis and preparation of a report on the PROJECT costs and economic viability, 2) coordination with City Staff and private developers,3) negotiation of property acquisition and relocation. 4) creation of a Redevelopment Tax Increment District, and 5) drafting and execution of a development agreement detailing commitments between city and private developers fer implementation of the PROJECT. WHEREAS, the CONSULTANT represents that it Is familiar with economic issues, programs and regulations governing the PROJECT and is qualified and willing to provide such assistance. NOW THEREFORE. for mutual and valuable consideration the sufficiency otwhich is not disputad, the parties agree as fellows: A. SCODe of Consultant's Services The CONSULTANT agrees to perform in a good and professional manner the following services: 1. Preparation of a financial analysis and report on the costs and economic viability of the PROJECT. 2. Coordinate with City Staff and private developers in connection with the development of the PROJECT. 3. Negotiation of property acquisition and relocation. 4. Creation of a Redevelopment Tax Increment district . 5. Preparation and execution of a devolopmentagreement in a form acceptable to the City Manager detailing commitments between the City and private developers for implementation of the PROJECT. These services are outlinod in greater detail in Appendix A. a copy of which is attached hereto and incorporated as part of this AGREEMENT. Page 1 of 3 / ...l' -- -..' FEB-19-1996 12: 46 FROM ADUAt'-ICE INC. TO PR I OR LAKE -C ITY P.03 )1 +i1 ~ B. Services to be Provided bv the CitY The CITY shall advise the CONSULTANT of the existence and a'nlilability of any information, data, reports, records, and maps reasonably known to the City that may be useful for carrying out the work on this PROJECT. Upon requost. this information ~hall be promptly furnished to the CONSULTANT. Specific services and materials to be provided by the CITY are outlined in Appendix B. a copy of which is attached hereto and inoorporated as part of this AGREEMENT. C. Meetinas and Reports The CONSULTANT shall during the duration of this Agreement. attend the meetings necessary to successfully structure, negotiate and implement the PROJECT. The CONSULTANT shall provide sufficient copies of proposed documents to the CITY for meeting purposes. Sufficient copies of any final documents shall be preparod to ensure that the CITY can meet its obligations for filing said documents. The CONSULTANT shall provide regular status reports to the CITY to ensure that they remain informed as to the status of the PROJECT. D. Chanaes in Scope of Service The CITY may request of the CONSULTANT changes in the Scope of Services to be perfonned hereunder. Changes which are mutually agreed upon by and between the CITY and the CONSULTANT. including any appropriate increase or decrease in the amount of compensation, shall be incorporated in written amendments to this AGREEMENT. E. Consultant's Comcensation The CONSULTANT shall be compensated on the following basis: up to an amount not to exceed thirty thousand ($30,000) as referenced under F below for CONSULTANT time and expenses including travel within the State of Minnesota, general out-of-pocket expenses and printing. F. Method of Payment The CONSULTANT shall be paid up to an amount not to exceed thirty thousand dollars ($30,000) upon completion of the following: $7,000 for activities identified in Appendix A. Step I. This amount shall be due within 10 days from execution of this Agreement. Evidence of the product of this effort shall be presentation of a report to the CITY which identifies redev~opment options, puts forth a recommendation for financing and delineates responsibilities and timeliness for various actions. An additional $7,000 shall be due and payable if the CITY elects to proceed with the PROJECT and authorizes preparation of documents for financing public costs (e.g.land acquisition. infrastructure, demolition and relocation) and a development agreement with private developer(s) to implemant the PROJECT. 3. The balance of the Fees authoriZed by this Agreement shall be due and payable upon execution of a dQv~opment agreement with private developer(s) and within 10 days a'ftar City Council approval to implement the PROJECT. II (A.(' ~,( ~ .j-!P! DC 0 . ~ 6 Ct(> "I. \ + 4, Ib, (CD. Page 2 of 3 FEB-19-1996 12:46 FROM ADVANCE INC. TO PRIOR LAKE-CITY P.0':' :.HM6 G. Time of PQl'formance The services of the CONSULTANT will begin upon delivery to the CONSULTANT of an executed copy of this AGREEMENT and shall, absent of causes beyond the reasonable control of the CONSULTANT, be completed within the following time frame, unless otherwise mutually agreed upon in writing between the CONSULTANT and the CITY. · Initial analysis and presentation of a report identifying redevelopment options will be completed within 60 days from the date of execution of this Agreement. · Final negotiations, preparation of financing documents and development agreements enabling implementation of PROJECT are expected to be completed within 120 days from the date of execution of this Agreement. H. Hold Harmless CONSULTANT hereby agrees to indemnify and hold CITY harmless from all claims or l/ability inCluding attomeys' fees arising out of the professional services fumished under this contract, providing that such claims or liability is the result of a negligent act, errOr or omission of the CONSULTANT and/or its employ8QS/agents, sucoessors and assigns arising out of the prof&ssional services described in the contract. I. Other Provisions The CITY, and the CONSULTANT agree to the terms and conditions outlined in Appendix C, a copy of which is attached hereto and incorporated as part of this AGREEMENT. This Agreement shall be governed by the Ulws of Minnesota. IN WITNESS WHEREOF, the CITY, and the CONSULTANT have executed this AGREEMENT on the date and year first above written. CONSULTANT: AOVANCERESOURCES FOR DEVELOPMENT, INC. CUENT: CITY OF PRIOR LAKE By: Roger Guenette By: Lydia Andren Its: Partner Its: Mayor By: Frank Boyles Its: City Manager Page 3 of 3 , STAFF AGENDA REPORT ,"", CONSENT AGENDA # 4 D . '\ ~~ PREPARED BY: FRANK BOYLES, CITY MA1'JAGER \' ./ SUBJECT: CONSIDER APPROVAL OF CONTRAC'D \v1TH ADVAl"JCED RESOURCES FOR DEv"'ELOPMENT DATE: lVIARCH 4,1996 BACKGROUND: The City Council at their February 20 meeting deferred action on a proposed contract with Advanced Resources for Development until the City Council acting as the Economic Development Authority (EDA) had the opportunity to review revisions made by the City Attorney's office and discuss the contract provisions with Roger Guenette. DISCUSSION: Attached for Council information is a copy of the revised agreement with Roger Guenette. The Council sitting as the Economic Development Authority has had the opportunity to discuss the contract with Mr. Guenette at the EDA meeting scheduled at 5:30 p.m. this evening. The purpose of the contract is to provide payment to Roger Guenette doing business as Advanced Resources Development in association with redevelopment projects which are currently under consideration within the community. Mr. Guenette's current contract with the city deals with development exclusively. Redevelopment projects, because of their nature, involve far more preparation because they normally include a larger number of parties of interest. The proposed contract is formatted so that payment is based upon the level of success achieved. ISSUES: The Council needs to determine whether or not they believe the contract as proposed is appropriate compensation to Mr. Guenette for services rendered. The Council has already determined that the promotion of 16200 ~~~9tAve. S.E.. p;jor Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 A:" EQL,>'L OPPORTC:-<m' E."IPLOYER redevelopment projects ill the community IS a high priority. FINAJ.'l'CIAL IMPACT: The costs associated with this contract will be borne by the Tax Increment Financing Redevelopment District created to accomplish the contemplated projects. ALTERNATIVES: The Council has the following alternatives: 1. Approve the contract by motion and second as part of the consent agenda. 2. Remove the item from the consent agenda for additional discussion. RECOMMENDATION: Alternate #1. ACTION REQUIRED: Motion and second as part of the Consent Agenda to approve the Development Agreement dated February 19, 1996 with Advanced Resources for Development. Attachment AG30496.DOC FEB-19-1996 12:45 FRCM ADUAI'ICE II'IC. TO PRIOR LAKE-CITY P.02 AGHEeMENT BETWEEN CITY OF PRIOR LAKE AND ADVANCE RESOURCES FOR DEVELOPMENT, INC. WHEREAS. this AGREEMENT is made and enterocl into this _ day of FebNary, 1996, by and between the City of Prior Lake, 16200 Eagle Creek Ave. S.E.. Prior Lake. MN 55372-1714 (hereinafter referred to as the .CITY") and Advance Resources for Development. Inc.. a Minnesota Corporation with offices at 201 N. Broad, Suite 310, Mankato, MN 56001 (hereinafter referred to as the .CONSULTANTj; and WHEREAS, THE CITY desires to engage the services of the CONSULTANT to fumish technical and professional assistance in connection with the Highway 13 Redevelopment Projec1 (the .PROJECT"). These services shall include 1) Financial analysis and preparation of a report on the PROJECT costs and economic viability, 2) coordination with City Staff and priVate developers,:)) negotiation of property acquisition and relocation. 4) creation of a Redevelopment Tax Increment District. and 5) drafting and execution cf a development agreement detailing commitments between city and private developers for implementation of the PROJECT. WHEREAS. the CONSULTANT repn!Jsents that it is familiar with economic issues. programs and regulations governing the PROJECT and is qualified and willing to provide such assistance. NOW THEREFORE. for mutual and valuable ccnsideration the sufficiency of which is not disputSld. the parties agree as follows: A. SCODe of Consultant's Services The CONSULTANT agrees to perform in a good and professional manner the following services: 1. Preparation of a financial analysis and report on the costs and economic viability of the PROJECT. 2. Coordinate with City Staff and private developers in connection with the development of the PROJECT. 3. Negotiation of property acquisition and relocation. 4. Creation cf a Redevelopment Tax Increment district . 5. Preparation and execution of a development agreement in a form acceptable to the City Manager detailing commitments between the City and private developers for implementation of the PROJECT. These services are cutlined in greater detail in Appendix A, a copy of which Is attached neretc and incorporated as part of this AGREEMENT. Page 1 of 3 FEE-19-1996 12:46 F~CM ADUANCS INC. TO PR I OR L.'=iKE-C ITY P.03 B. Services to be Provided by the CitI( The CITY shall advise the CONSULTANT of the existence and availability of any information. data. reports, records. and maps reasonably known to the City that may be useful for carrying out the work on this PROJECT. Upon request. this in1crmation shall be promptly furnished to the CONSULTANT. Specific services and materials to b. provided by the CITY are ouUlned in Appendix 8. a copy of whieh is attached hereto and incorporated as part of this AGREEMENT. c. Meetinas and Recolts The CONSULTANT shall during the duration of this Agreement. attend the meetings necessary to successfully structure. negotiate and implement the PROJECT. The CONSULTANT shall provide su1'ftclent copies of proposed documents to the CITY fer meeting purposes. Sufficient copies of any "final documents shall be prepantd to ensure that the CITY can meet its obligations for flUng said documents. The CONSULTANT shall provide regular status reports to the CITY to ensure that they remain informed as to the status of the PROJECT. D. ChanC2es in $coce of Service The CITY may request ot the CONSULTANT changes in the Scope of Services to be performed hereunder. Changes which are mutually agreed upon by and between the CITY and the CONSULTANT, including any appropriate increase or decrease in the amount of compensation, shall be incorporated in written amendments to this AGREEMENT. E. Consultant's Comcensatlon The CONSULTANT shall be compensated on the following basis: up to an amount not to exceed thirty thousand ($30,000) as referenced under F below for CONSULTANT time and expenses including travel within the State of Minnesota. general out-ot-pocket expenses and printing. F. Method of Pavment ~~ The CONSULTAmshal~e paid up to an amount not to exceed thirty thousand dollars ($30,000) upon completion ~1I0win9: 1. $7,000 fer activities identified in Appei'ldix A, Step I. This amount shall be dUe within 10 days from execution of this Agreement Evidence of the product of this effort shall be presentation of a report to the CITY which identifies 1'9d8V~opment options, puts forth a recommendation for financing and delineates responsibilities and timeliness for various actions. 2. An additional $7,000 shall be due and payable if the CITY elects to proceed with the PROJECT and authomes preparation of documents for 'financing public costs (e.g.land acquisition, infrastructure. demolition and relocation) and a development agr"ment with private developer(s) to implClment the PROJECT. The balance of the Fees authorized by this Agreement shall be due and payable upon execution of a d9Velopment agl"Mment with private developer(s) and within 10 days a'fter City Council approval to implement the PROJECT. M .,-~ Paget 2 ot 3 -, FEE-19-1996 12: 46 FRCM ADUANC::: It'-IC. TO PRIOR LAKE-CITY P.0': G. Tlmo of Performance The services of the CONSULTANT will begin upon delivery to the CONSULTANT of an axecuted copy of this AGREEMENT and shall, absent of causes beyond the reasonable control of the CONSULTANT, be completed within the following time frame, unless otherwise mutually agreed upon in writing betwoen the CONSULTANT and the CITY. · Initial analysis and presentation of a l'8port identifying redevelopment options will be completed within 60 days from the date of execution of this AgTOQlT1ont. · Final negotiations, preparation of financing documents and development agreements enabling implementation of PROJECT are expected to be completed within 120 days from the date of execution of this Agreement H. Hold Harmless CONSULTANT hereby agrees to indemnify and hold CllY harmless from all claims or liability including attomeys' fees arising out of the professional services furnished under this contract, providing that such claims or liability is the result 01 a negligent act. error or omission of the CONSULTANT and/or its employees/agents, successors and assigns arising out 01 the pr0f9ssional seMces described in the contract. l. Other Provisions The CllY, and the CONSULTANT agrM to the tenns and conditions outlined in Appendix C. a copy 01 which is attached hereto and incorporated as part of this AGREEMENT. This Agreement snail be governed by the Laws of Minnesota. IN WITNESS WHEREOF, the CITY, and the CONSULTANT have executed this AGREEMENT on the date and year first above written. CONSULTANT; AOVANCERESOURCES FOR DEVELOPMENT, INC. CUENT: CITY OF PRIOR LAKE By: Roger Guenette By: Lydia Andren Its: Partner Its: Mayor By: Frank Boyles Its: City Manager Page 3 of 3 FEB-19-1996 12:47 FROM ADVANC2: II'IC. TO PRIOR LAKE-CITY P.05 APPENDIX A The PROJECT involves approximately 30 acrQS of land situated east at and adjacent to Highway 13 between Franklin Trail and Duluth Streets in the City of Prior Lake, MN. . !he CO~SULTAN~ Shall. perfcrm the following services to assist the CITY in structuring, negotiating and Implementing a Highway 13 Redevelopment Project (the 'PROJECTj. Such assistance involves undertaking the following activities: 1. Research. analy%e and make recommendations to the City an the affordability and financing of the PROJECT. The following tasks identified as STEP 1 fer purposes of SectIon F 1 of the Agreement are anticipated to fulfill this objective: Conduct research to detennine costs of land acquisition, infrastructure improvements, demolition. relocation and extent of private sector participation. Upon completion 01 this research and identification of costs and timeframes associated with these resources the CONSULTANT will present the CITY with a written report detailing financing options and recommended strategies and altematives. Once concurrence has been reached with the CITY and regarding a specific redevelopment and financing strategy, the CONSULTANT will identify a schedule for implementation of the Development Project. 2. Prepare, assist and/or coordinate the drafting and submission of applications or other technical documents necessary to secure commitments fer the implementation of this PROJECT. To accomplish these objectives the following tasks are anticipated: Negotiate land acquisition and secure executed purchase agreements for appropriate parties. AddrRSs relocation issues to the CITY'S satisfaction. Prepare tax increment financing dOCUments and obtain all necessary approvals. Prepare and execute development agreements in a form satisfactory to the City Manager between the CITY and private developers. Prepare or assist with the preparation of hearing notices. resolutions, commitment letters or other documents or correspondence necessary to the successfully complete the redevelopment PROJECT. Attend all public hearings, public mQQtings and other meetings requested by the CITY or necessary for implementation of redevelopment PROJECT. Maintain ongoing communication with the CITY regarding any changelS or new opportunities which could impact the PROJECT. The CITY and CONSULTANT mutually agree that it is the intent to premote and implement redevelopment of an approldmate 30 acre parcel east of and adjacent to Highway 13 between Franklin Trail and Duluth Street. However, approximately 18 acres of this property are presently owned by Neil Soderman (or his atrlllatos). The ability to incorporate this parcel as part of the redevelopment PROJECT shall be impacted by ability of private developers to acquire the property from Neil Bcderman. In the event that the City and private developers are unable to a1fcrdably acquire the Soderman property by either purchase or condemnation the PROJECT will be nIlstricted to the balance of acreage in the area identified for redevelopment. n ;"1 FEB-19-1996 12:47 FROM ADVANCE INC. TO PRIOR LAKE-CITY P.06 APPENDIX B INFORMATION AND SERVICES TO BE PROVIDED BY THE CITY The CITY agrees to provide the following infonnation and services to the CONSULTANT on a timely basis. The completion of services to be perfonned by the CONSULTANT under the AGREEMENT is contingent upon the timely receipt from the CITY, at no cost to the CONSULTANT, the S81'Vices, data, and reports described in this attachment. The information and services to be provided ant identified in the following paragraphs. , . The CITY shall be reasonably available on a day.tC>day basis to ensure timely progress of the PROJECT. 2. The CITY shall assist the CONSULTANT if requested to arrange necessary meetings with public officials and other appropriate public agencies. 3. The em shall obtain any necessary property appraisals for the acquisition of private property by the CTTY. 4. The CliY shall obtain any legal, engineering or financial underwriting services necessary to ccmplete the PROJECT. FEB-19-1996 12:47 FRCM ADUANCE INC. TO PRIOR L;'KE-CITY P.07 APPENDIX C OTHER PROVISIONS 1. Termination. The CITY and the CONSULTANT shall have the right to terminate the AGREEMENT by 10 days written notice delivered personally or by certified mail to the other party. In such event, all1inished and unfinished documents and work papers prepared by the CONSULTANT shall become the property of the CITY, and the CONSULTANT shall receive just and equitable compensation and reimbursement for the work undertaken to the date of termination. 11 the CITY does not exercise the option to elaim such documents and work papers as its property, then no file shall be payable. In any event, any documents delivered to the CONSULTANT by the CITY shall remain the sole property of the CITY and shall be returned upon termination or concfusion of this Agreement. 2. Excusable D@lavs. The CONSULTANT shall not be in default by any reason of any failure in performance of this AGREEMENT in accordance with its femlS, if such failure arises out of causes beyond the reasonable control of the CONSULTANT and without default or negligence of the CONSULTANT. 3. Extra Work. If requested and authori2:ed in writing by the CITY, the CONSULTANT will be available to furnish or obtain from others, additional services. The cost and schedule for completing extra work authorized by the CITY snail be subject to negotiation between the CITY and the CONSULTANT and shall be set forth in a Written amendment to this Agreement. 4. Findinos PropertY of CITY. Notwithstanding the provisions set forth in paragraph 1 above at the conclusion of this Agreement. all finished or unfinished documents, data, surveys, studies, drawings. maps. models, photographs, and reports prepared by the CONSULTANT snail at the option of the Clrf, become the property of the CITY and shall be delivered to the CITY. 5. Con1'Iict of Interest. The CONSULTANT certiffes to the best of its knowledge that no CITY employee or employee or o1fieer of any public agency interested in this AGREEMENT has any ~ cuniary interest in the business of the CONSULTANT or the AGREEMENT. and that no person associated with the CONSULTANT has any interest that would conflict in any manner or degree with the performance of the AGREEMENT. -. e. Compliance with Laws. The CONSULTANT shall at all times observe and comply with all laws. ordinances and regulations of the state. federal, local and city government which may in any manner affect the performance of the AGREEMENT. 7. Personnel. All at the services will be performed by the CONSULTANT. The CONSULTANT represents that it has, Or will secure at its own expense. all personnel required to carry out and perform the scope of services of this AGREEMENT. Such personnel shall be fully qualified. 8. Independent Contractor. The relationship of the CONSULTANT to the CITY is that of an independent contractor. Nothing in this AGREEMENT shall be construed so as to deem any employee or agent of the CONSULTANT to be ~n employee or agent of the CllY for any purpose. TOTAL P.07 FEB-19-1996 12:47 FROM ADUANCE INC. TO PR I OR LAKE -C ITY P.0~ 3/ L//'~ APPENDIX A The PROJECT involves approximately 30 acl'QS of land situated east of and adjacent to Highway 13 between Franklin Trail and Duluth Streets in the City 01 Prior Lake, MN. Tho CONSULTANT shall perform the following services to assist the CITY in structuring, negotiating and implementing a Highway 13 Redevelopment Project (the .PROJECTj. Such assistance involves undertaking the following activities: 1. Research. analyu and make recommendations to the City on the affordability and financing of the PROJECT. The following tasks identified as STEP 1 fer purposes of Sectlon F 1 of the Agreement are anticipated to fulfill this objective: Conduct research to detennine costs of land acquisition. infrastructure improvements, demolition. relocation and extent of private sector participation. Upon completion of this research ar:d Identification of costs and tim&frames associated with these resources the CONSULTANT will present the CITY with a written report detailing financing options and recommended strategies and altematives. Once concurrence has been reached with the CITY and regarding a specific redevelopment and financing strategy, the CONSULTANT will identify a schedule for implementation of the Development Project. 2. Prepare, assist and/or coordinate the drafting and submission of applications or other technical documents necessary to secure commibnents for the implementation of this PROJECT. To acc:omplish these objectives the following tasks are anticipated: Negotiate land acquisition and secur@ executgd purchase agreements for appropriate parties. Address relocation issues to the CIT'fS satisfaction. Prepare tax increment financing documents and obtain all necessary approvals. Prepare and execute development agreements in a form satisfactory to the City Manager between the CITY and private developers. Prepare or assist with the preparation of hearing notices, resolutions, commitment letters or other documents or correspondence necessary to the successfully complete the redevelopment PROJECT. Attend all public hearings, public meetings and other meetings requested by the CITY or necessary for implementation of redevelopment PROJECT. Maintain ongoing communication with the CITY regarding any changes or new opportunities which could impact the PROJECT. The CITY and CONSULTANT mutually agree that it is the intent to promote and implement redevelopment of an approximate 30 acre parcel east of and adjacent to Highway 13 between Franklin Trail and Duluth Street. However, approximately 18 acres of this property are presently owned by Neil BocIennan (or his a1fillates). The ability to incorporate this parcel as part of the redevelopment PROJECT shall be impacted by ability of private developers to acquire the property from Neil Soderman. In the event thet the City and private developers are unable to a1fordably acquire the Boderman property by either purchase or condemnation the PROJECT will be restricted to the balance of acreage in the area identified for redevelopment. FEB-19-1996 12:47 FROM ADVANCE INC. TO PRIOR LAKE-CITY P.06 3N !1lP APPENDIX B INFORMATION AND SERVICES TO BE PROVIDED BY THE CITY The CITY agrees to provfcle the following information and S4HVices to the CONSULTANT on a timely basis. The completion of services to be perfonned by the CONSULTANT under the AGREEMENT is contingent upon the timely receipt from the CITY. at no cost to the CONSULTANT, the services, data, and reports described in this attachment The infcnnation and services to be provided are identitktd in the foUowing paragl8phs. , . The CITY shall be reasonably available on a day.to-day basis to ensure timely progress of the PROJECT. 2. The CITY shall assist the CONSULTANT if naquested to arrange necessary meetings with public officials and other appropriate public agencies. 3. The CITY shall obtain any necessary property appraisals for the acquisition of private property by the CITY. 4. The CITY shall obtain any legal, engineering or financial underwriting services necessary to complete the PROJECT. FEB-19-1996 12:47 FROM ADVANCE INC. TO PR I OR LAKE-C lTY P.07 ') I ~/7 0 APPENDIX C OTHER PROVISIONS 1. Termination. The CITY and the CONSULTANT shall have the right to terminate the AGREEMENT by 10 days written notice delivered personally or by certified mail to the other party. In such event, all finished and unfinished documents and work papers prepared by the CONSULTANT shall become the property of the CITY, and the CONSULTANT shall receive just and equitable compensation and reimbursement for the work undertaken to the date of tennination. If the CITY does not exercise the option to claim such documents and work papers as its property, then no fee shall be payable. In any event, any documents deliv&red to the CONSULTANT by the CITY shall remain the sole property of the CITY and shall be returned upon termination or conclusion of this Agreement. 2. Excusable Delavs. The CONSULTANT shall not be in default by any reason of any failure in performance of this AGREEMENT in accordanc. with its tenns, if such failure arises out of causes beyond the reasonable control of the CONSULTANT and without default or negligence of the CONSULTANT. 3. Extra Work. If requested and authori~ed in writing by the CITY, the CONSULTANT will be available to furnish or obtain from others, additional services. The cost and schedule for eompleting extra work authorized by the CITY shall be subject to negotiation between the CITY and the CONSULTANT and shall be set forth in a written amendment to this Agreement. 4. AndinQs I='ropertv of CITY. Notwithstanding the provisions set forth in paragraph 1 above at the conclusion of this Agreement. all finished or unfinished documents. data, surveys, studies, drawings, maps. models, photographs, and reports prepared by the CONSULTANT shall at the option of the CITY, become the property of the CITY and shall be delivered to the CITY. 5. Conflict of Interest. The CONSULTANT certifies to the best of its knowledge that no CITY employee or employee or officer of any public agency interested In this AGREEMENT has any pe- cuniary interest in the business of the CONSULTANT or the AGREEMENT, and that no person associated with the CONSULTANT has any interest that would conflict in any manner or degree with the performance of the AGREEMENT. -- 6. Compliance with Laws. The CONSULTANT shall at all timets observe and comply with all laws. ordinances and regulations of the state, federal, local and city government which may in any manner affect the performance of the AGREEMENT. 7. Personnel. All of the services will be performed by the CONSULTANT. The CONSULTANT represents that it has, Or will secure at its own expense, all personnel required to cany out and perform the scope of services of this AGREEMENT. Such personnel shall be fully qualified. 8. Indecendent Contractor. The relationship of the CONSULTANT to the CITY Is that of an independent contractor. Nothing in this AGREEMENT shall be construed so as to deem any employee or agent of the CONSULTANT to be ='in employee or agent of the CITY fer any purpose. TOTAL P.07 -. C" "7 ;. ICA- s' ';1r. ; 10 .~ .. (/,:"" I ~. I' i .j-J-~ ;'1 1"~7'1 "? uO"tIiCIIIN ~T.'(, LU".(" 130~J' I I. ,. Ulll:(" a..:... 130& u-- H H .. nD. 3' (.( II I 'U02 -, . A N(A,"ua, o .. :s MAUnA IS4U . . : CUIIlT l:sna. ....U '.' O"fT&..oT .1'; A LAWlIllICt sC_tlCM arBSI . . . lOa '. lo:ss..a - eo .... .. ~. - ...: l)-{'\l ~\ '0 rn ~ kLiol.)J~'O ~J- ~ ""'", '7:l \ ~~o..4,.,~ '\ ~ ~..,v-~ :'; - \ '0 r'\'\J i... '"!..~ ""-.~\V"- ."'rc'1..:\.....'~\ , " '". ! .... c..............~.... ( Plat Map ) ~. ~t0 <;t-' ~ ~\::\ J ALTERNATIVE SITE LAYOUTS - SlJMMARY \-\ WENSMANN INDUSTRIAL I)ARK Prior Lake, Minnesota February 13, 1996 Architect's I Plan A B C D Total Buildings 5 7 5 7 7 Total Square Feet 297,000 282,075 210,175 311,525 268,475 Z e (J",'::' (~ r;.,? Average Square Foot Building 59,400 40,300 42,035 44,503 38,353 Retaining Walls (F.F.) 420 1,255 890 0 Wetland Impact (S.F.) yes 6,084 2,808 16,920 2,484 Right of Way (L.F.) 1,500 1,650 1,542 1,728 Pike Lake Road Access Points I I 2 2 \ "'T1 0'trT11-' )> .......a.~ x N (tI ........ m ~~~ :;; :J OJ ~ lO U1::;' C ~ ~~' ~ f.J' 0gI 00 Z " ~ ~: w .po .po -< ... " ~ 1 c; '-' ,- -0 a ro '" '" o :;:J '" c.n ro <: n ro '" :s- o ~ ~ f'~"''n _. " ...... ~ 1 ~ :J :s r ~ ~ -r- D ;5 CITY OF PRIOR LAKE BASE MAP -. -'-~ rJ\n_ r \ (A) ~~- ~ -------- ) '--.i~ \1~ r;.:, I ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA March 4, 1996 5:30 p.m. I. Call to Order II. Pledge of Allegiance III. Presentations IV. Old Business A. Election of Officers B. Appointment of Liaisons C. Approval of Contract with Advance Resources for Development V. New Business A. Presentation of Development/Redevelopment Activities B. Discussion on Wensmann Parcel Concept C. Annexation VI. Adjourn- 7:00 p.m. 16200 l~3O~k Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER MINUTES OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY March 4,1996 I. CALL TO ORDER Members present were: Lee Andren, Allen Greenfield, Tom Kedrowski, Wes Mader and Pete Schenck. II. PLEDGE OF ALLEGIANCE Record to show that Pledge of Allegiance was not performed. III. PRESENTATIONS IV. OLD BUSINESS A. Election of Officers: The first order of business was election of officers: Election of Officers MOTION BY GREENFIELD, SECOND BY KEDROWSKI, TO President NOMINATE WES MADER AS PRESIDENT. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. MOTION BY SCHENCK TO NOMINATE TOM KEDROWSKI AS Vice President VICE PRESIDENT. THE MOTION DIED FOR LACK OF A SECOND. MOTION BY MADER, SECOND BY ANDREN, TO NOMINATE ALLEN GREENFIELD AS VICE PRESIDENT. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. MOTION BY KEDROWSKI, SECOND BY SCHENCK, TO NOMINATE Treasurer LEE ANDREN AS TREASURER. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. MOTION BY ANDREN, SECOND BY KEDROWSKI, TO NOMINATE Secretary FRANK BOYLES OR HIS DESIGNEE AS SECRETARY. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Minutes of the Prior Lake EDA March 4, 1996 Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. B. Appointment of Liaisons The next order of business was nomination of someone to act as haison between the EDA and downtown businesses. MOTION BY ANDREN, SECOND BY KEDROWSKI, TO APPOINT Business PAUL VIERICK AS LIAISON BETWEEN THE EDA AND THE Liaison DOWNTOWN BUSINESS COMMUNITY. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. C. Approval of Contract with Advance Resources for Development Roger Guenette briefly discussed his activities to date with the Park Nicollet Chnic and developers of a proposed redevelopment project including the Priordale Mall and surrounding businesses. MOTION BY KEDROWSKI, SECOND BY SCHENCK, TO Contract with RECOMMEND ADOPTION OF THE CONTRACT WITH ADVANCE Advance RESOURCES FOR DEVELOPMENT, INC. Resources for Development Commissioner Mader questioned the language in the contract and the fact that the contract was being proposed to cover past work. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, and Schenck, nay by Mader, the motion carried. V. NEW BUSINESS A. Presentations on Development/redevelopment Activities. Roger Guenette presented a design concept plan for the 30 acre Priordale TIF District Mall and Drive-In Theater property, discussed the proposal by the two Priordale Mall/ developers for joint coordination of the development and redevelopment and Drive-In the possibility of the city underwriting the project through theTheater establishment of a TIF district. Considerable discussion occurred regarding the type of businesses the project would include, the relocation of certain businesses, total square footage, etc. The Commissioners expressed concern over the possible appearance that they were assisting business owners at the expense of existing businesses who required no TIF to construct their facility. They also discussed the pros and cons of whether or not this is the right time to redevelop and relocate the area under discussion and stated that they EDA30496.DOC 2 Minutes of the Prior Lake EDA March 4, 1996 would like to see a better mix of businesses than gas stations, video stores and liquor stores. Mr. Guenette assured the Commissioners that this was a concept plan only and that TIF funds would not be given to individual businesses, but rather the developers would use the funds to develop the property itself which involves considerable demolition of existing structures, dirt moving and construction of a ring road in order to properly redevelop the property. Considerable discussion occurred regarding the mix of businesses and details of the redevelopment. B. Discussion on Wensmann Parcel Concept Planner Don Rye discussed the Wensmann parcel and the concept plan ldensmann which could involve about 275,000 of total building square footage. Parcel Concept Discussion occurred regarding the parking lot location, quality of buildings, Plan facade of buildings, view from County Road 42, road location, steps of phasing in the building. The commissioners concurred that they would like to postpone discussion on this item until a more complete infrastructure plan could be developed. C. Annexation MOTION BY ANDREN, SECOND BY GREENFIELD, TO TABLE Annexation THIS DISCUSSION UNTIL STAFF CAN PROVIDE ADDITIONAL INFORMATION REGARDING THE PROPOSED ANNEXATION AREAS OF 1, 2 AND 3 AS SUBMITTED ON MARCH 4, 1996. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. VI. ADJOURNMENT MOTION BY ANDREN, SECOND BY GREENFIELD, TO ADJOURN THE Adjourn MEETING. Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, Mader and Schenck, the motion carried. The meeting adjourned at 7:30 p.m. W~Mad~/~. resi~nt EDA30496.DOC 3