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PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
MEETING
Monday, October 18, 1999 5:30 p.m.
Fire Station City Council Chambers
1. Call to Order
2. Pledge of Allegiance
1> ~~ 3. Approval of Minutes - September 22, 1999 S---o
:ilif>- 4. Consent Agenda
a) Payment oflnvoices 5'-0
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5. Presentations - None
6. Public Hearings - None
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7. Old Business
a~ Preliminary Comments about Business Retention Survey Results. - 7 r( l t'\M ·
b) Review EDA presentation for November 15 and December 6.
8. New Business
9. Other Business
a) Review 19~9 EDA GOi~ ~d Objectives
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10. Announcements or Correspondence
11. Adjournment, 7:00 p.m. -'- J,- IJ .:k. L I>AlJ,t4It
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
MEETING
Wednesday, September 22,1999
5:30 p.m.
Fire Station City Council Chambers
Call to Order and Pledge of Allegiance. Those present were President Barsness and Commissioners
Schenck, Underferth, and Jader, Executive Director Boyles, Planning Director Rye, Project Coordinator
Guenette, and Recording Secretary Meyer. Commissioner Kedrowski was present to vote at the
beginning of Old Business.
ApPROVAL OF AUGUST 16. 1999 MINUTES:
MOTION BY SCHENCK, SECOND BY JADER TO APPROVE AUGUST 16,1999 MINUTES.
VOTE:Ayes By Schenck, Underferth and Jader, the motion carried.
CONSENT AGENDA:
Invoices to be Paid
MOTION BY SCHENCK, SECOND BY JADER TO APPROVE THE CONSENT AGENDA.
VOTE: Ayes by Schenck, Underferth and Jader, the motion carried.
PRESENTATIONS:
Growth Pressures from a School District Perspective - Les Sanna bend.
SONNABEND: Outlined some of the challenges facing the district this fall, including increased enrollment
well above the past average growth rate across all three grade levels, overcapacity at Grendale and
Hidden Oaks. The District is at a point where they need to build for relief over grades K-12. Noted the
meeting process over the next few weeks. There is a significant concern as to land acquisiiton for a
secondary school (60-80 acres) that is centrally located and has access to sewer and water hookups.
Also noted that secondary buildings take longer to build and have a longer planning process. The intent
is that the study committees will come to the School Board with recommendations by December /
January, with a Referendum proposal in the Spring of 2000.
SCHENCK: Asked about the experiment with block scheduling.
SONNABEND: Clarified that whether or not the block scheduling was implemented, it would not increase
capacity.
UNDERFERTH: Asked what location would be the most central district location.
SONNABEND: North-South would be the Ponds, and East-West would be downtown Prior Lake. Expects
most of the growth to come from the east side of the district. Noted that housing starts used to be the
indicator, but is woefully inaccurate because of the cost of the housing and planned developments for
seniors and assisted living.
JADER: Asked the most viable recommendation at this point.
SONNABEND: Noted that a secondary school would provide relief across the board. If that is not
possible, we would look at adding an additional middle school. Traffic volume is also a location issue.
SCHENCK: Asked if closing off Fish Point and developing a "campus" site would alleviate the problem.
SONNABEND: It would still be too crowded because there is a limited number of acres. Thanked the City
for its participation in the planning process. Noted the study meetings are next Tuesday, September 26
at Prior Lake Fire Station No.1, and the following Tuesday at Savage City Hall. Both meetings begin at
7:30pm.
PUBLIC HEARINGS: None.
OLD BUSINESS:
Status Report from Commissioners on Business Retention and Expansion Strategies Survey.
BOYLES: Noted the purpose was to get a feel for where we stand with respect to completing business
surveys, and a discussion on how to tabulated the results.
Each of the Commissioners provided a brief update on the remaining surveys to be completed.
SCHENCK and UNDERFERTH agreed that the results need to be tabulated in order to see the numbers,
but that the general comments will present a different challenge.
JADER: Noted that the business owners he interviewed were very upbeat, proud of their businesses,
and supported wholeheartedly the downtown redevelopment. Businesses are looking for a
representative, and commented that in order to attract new businesses, the EDA needs to develop a
much better relationship with the existing business community. Suggested also having a workshop
discussion to draw some conclusions and formulate work program from the results.
SCHENCK: Volunteered to initially tabulate the results, then a subcommittee of himself and
Commissioner Underferth would organize the results, and the final product would be reviewed by Mr.
Rye. Individual results could be sent directly to Commissioner Schenck.
BARSNESS: Also suggested that the EDA work in connection with the Chamber to develop a program of
business 1~,_""uIIL~:HIUII. "'l..~h~
UNDERFERTH: Commented that traditional Chambers work best with retail trade. The businesses in
Prior Lake would probably lend themselves to being an ombudsman. Also noted that the businesses he
interviewed voiced negative concerns about the Council and Mayor.
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Status of EDA Levy
BOYLES: Provided clarification as to the process by which the proposed EDA levy would be adopted.
Advised that the City Council has directed a public hearing for December 6, 1999, the same night as
the general fund budget public hearing. The Council would then take action on the proposed
Resolution authorizing the EDA levy at their December 20th meeting. If the Council authorizes the
action, the EDA would need to meet sometime before the 28th of December to finalize the levy.
BARSNESS: Asked if the proposed EDA levy had been discussed by the Council and if there was
consensus either in support or against. Also asked about the current budget and any surplusses.
BOYLES: Advised that the Council expressed two points of view. On one hand, Councilmembers felt
that only by having the City participate financially in the public/private partnership would the
redevelopment be accomplished. On the other hand, there was concern that the money was not
specifically earmarked and perhaps existing City surplusses should be redirected to be used in lieu of
an additional levy. Further explained that to say the City has a surplus and the extent of that surplus is
largely a matter of definition. The money in the General Fund Reserve is about 27% of the budget, and
is basically cash flow money. The City only receives income in the end of May and November each
year. During the interim, the City is able to use the General Fund Reserve. City auditors recommend
and the City Council has adopted a resolution that keeps the General Fund Reserve at 30%. Typically,
the City under expends the budget and revenues exceeds projections. The overage created goes into
the General Fund Reserve.
BARSNESS: Asked when the EDA can expect the Downtown Redevelop Plan.
BOYLES: Does not have an exact date, but expects the Plan in early December.
UNDERFERTH: Suggested that the EDA make a presentation at the public hearing in support of its
position.
KEDROWSKI: Suggested making the presentation even earlier (2nd meeting in November) in order to
give the Council enough preliminary information. Then, on December 6th at the public hearing to
provide only a brief overview.
The Commissioners agreed to make a presentation at the November 15th Council meeting, with an
overview or brief statement during the public hearing on December 6th.
BARSNESS: Commented that the community survey which provides support for the Downtown
Redevelopment should be considered a viable source, where the public hearing will likely be those
residents only in opposition to the action.
Discussion about Status of Downtown Redevelopment Study and Plans for its Completion.
The Commissioners discussed what would be presented at the November 15th Council meeting and
that the alternatives from the Architect need to at least be reviewed by the EDA so there is a parameter
within which to work in order support the levy recommendation.
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GUENETTE also added that to pursue any specific alternative would be preliminary until there was
further market analysis as to which alternative would be supported by private sector funding. The point
to make is that any progress would be stalled without some type of commitment.
SCHENCK: Suggested adding the business survey results discussion following the Downtown
Redevelopment workshop on October 12th.
The Commissioners agreed and discussed a calling plan effort to get public input on the proposed levy,
and to encourage participation in upcoming workshops.
UNDERFERTH: Advised that a Downtown businessperson suggested that Mr. Koegler hold a separate
meeting with the downtown businesspersons to get the the people in the loop that will be so strongly
impacted. Probably prior to the October 26th workshop.
NEW BUSINESS:
1) Review and Feedback of Proposed Scott County Economic Development Incentives Policy.
BOYLES: Reviewed the purpose of the agenda item in connection with the staff report.
RYE: Briefly described the issues with the policy that may affect Prior Lake, including that the intent
was to apply the policy only when County assistance is needed on a project. The County is in the
early stages of developing larger economic development programs.
GUENETTE: State law was enacted in the last legislative session that requires political jurisdictions
and various bodies to adopt a incentives or subsidy policy. The intent in distributing the policy to the
cities was the idea that the cities and County could develop some sort of uniformity in that policy,
particularly in the case of tax abatement subsidies where the individual jurisdictions must determine
if their share of the tax base will be used in support of a proposed project.
The Commissioners agreed that there were no objections to the County's proposed policy with
minor amendments. Staff will respond to the County accordingly.
RYE: The policy was also provided as a heads-up to the EDA because Prior Lake also needs to
take action to comply with the new statute.
SCHENCK: Noted that the EDA needs to keep in mind that as the legislation changes, that Prior
Lake has no contradiction with its TIF policy.
UNDERFERTH: Clarified that even though both jurisdictions need to adopt a policy, the policy would
likely be the same.
OTHER BUSINESS:
1) Review 1999 EDA Goals and Objectives
BOYLES: Noted that the revised goals and objectives are in connection with the action previously
approved by the EDA.
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KEDROWSKI: Asked if the November is still the timeline for the Ring Road project in the Franklin
Trail area.
BOYLES: Advised that November is still the target date.
ANNOUNCEMENTS:
Savage Business Park Development
BARSNESS: Noted that the news article indicated that there were $23.5 million in improvements and
renovations. Comparably, the $76,000 proposed levy by the EDA is somewhat insignificant compared
to what neighboring communities are willing to do.
BOYLES: Advised that Savage is also developing a business park at TH13 and 101 in collaberation with
Opus, and have probably visited some of our more successful businesses in hopes of luring them to
new locations.
1.7 Acre Towerfloronto Property.
BOYLES: Noted that the City has received a purchase agreement for this parcel to be used as a multi-
family housing development. It seems to be a win-win project.
Scott Rice Telephone Status.
BOYLE$: Provided an update including that Scott Rice projects they will need 25,000-30,000 square
feet of leased or rental office space by early 2001. We did walk them through the old library facility, but
that would probably not alleviate the companys long-term needs. The intent would then be that it would
buy some time to find a more permanent solution. My understanding is that the company would
maintain three facilities - the existing facility within downtown, the Bloomington marketing branch, and
the needed office facility.
KEDROWSKI: Suggested putting together a subcommittee to take an active part in finding a solution in
order to retain this company.
JADER: Volunteered to be on the subcommittee, and suggested acting right away.
Commissioners SCHENCK, JADER and BARSNESS (when available) wiIJ meet to further discuss with
Scott-Rice their needs and option within Prior Lake.
4) Valley Sign
GUENETTE: Followed up and found that Waterfront Passage is not an option for Valley Sign. Also talked
with Mr. Horkey extensively about financing, options and how the project would develop.
5) Library Opening
BOYLES: Noted that October 14th is the Grand Opening for the Library/Resource Center.
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6) Community Survey
BARSNESS: Advised that Executive Director Boyles, at a recent Rotary meeting, gave a presentation on
the results of the Community Survey that was both very well-done, and extremely informative.
Suggested that if the public or members of the EDA have an opportunity to hear the presentation. it is
well worth it.
The meeting adjourned at 7:10p.m.
Executive Director
Recording Secretary
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