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PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
MEETING
Monday, April 19, 1999 5:30 p.m.
Fire Station City Council Chambers
1. Call to Order
2. Pledge of Allegiance
-1<5.J $:1.:3 f.'VAPprOVa! of Minutes - March 22, 1999
( 4. Consent Agenda
5. Presentations ~ ~ L "t""'.J..v--- 100 ~ \ \ !"' >n-oo. v-e..c-,
y ~ :o~r..Itk. a) Scott Rice Telephone - High speed data transmission Q-g J -
___ (p 'r'50~ b) Scott County BRA Resources to Assist Prior Lake.
6. Public Hearings
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7. Old Business
a) _ Consider Agenda for Joint EDA, City Council and Planning Commission. /11 ~ I ~
b) Consider Approval of Report on Downtown Walk Meeting.
8. New Business
a) Consider Approval of Report on Major TH13 Intersections:
. CSAH 42 Frontage Roads
. Commerce A venue/Boudin St.
. 150th Street
. CSAH 23
b) Consider Status Report on 4.5 Acre Business Park Parcel and Authorize the
Expenditurj ~o~a ~urvey ofthis Parcel $
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9. Other Business
a) Review 1999 EDA Goals and Objectives
10. Announcements or Correspondence
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11, Adjournment, 7:00 p.m.
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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
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
MEETING
Monday, March 22,1999
5:00 p.m.
Fire Station City Council Chambers
Call to Order and Pledge of Allegiance. President Bob Barsness called to order a special
meeting of the Prior Lake Economic Development Authority, Those present were President
Barsness, Commissioners Kedrowski, Schenck, Underferth and Jader, Executive Director
Boyles, Planning Director Rye, Planning Coordinator Kansier and Recording Secretary
Carlson, .
3. Aporoval of January 19. 1999 Minutes:
MOTION BY SCHENCK, SECOND BY UNDERFERTH, TO APPROVE THE JANUARY 19,
1999 MEETING MINUTES.
Vote taken all ayes. MOTION CARRIED.
4. Consent Aaenda:
Executive Director Boyles introduced and added the following item to the agenda:
a) CONSIDER APPROVAL OF APPOINTMENT OF ASSISTANT TREASURER.
MOTION BY KEDROWSKI, SECOND BY SCHENCK, TO APPOINT FINANCIAL DIRECTOR.
RALPH TESCHNER, AS ASSISTANT TREASURER TO THE ECONOMIC DEVELOPMENT
AUTHORITY,
Vote taken all ayes, MOTION CARRIED.
5. Presentations: None,
6. Public Hearings: None.
7. Old Business:
a) Review and Finalize Notes from February 17, 1999 EDA Workshop
Boyles gave a brief overview of the items from the Workshop discussions, The purpose of the
item is to document the discussions took place, The items were prioritized and helpful to staff
to use as a basis for future work efforts,
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
March 22, 1999
. Item #2 indicates the EDA pays the full fee. Would the EDA recapture their funds at a later
date? Boyles responded it would depend if the project successfully went forward, Unless
there is a project, the amount of funding could not be recaptured,
. Rye said it would be true if they would be using TIF funds to reimburse. The EDA would
also have the option of using their own funds,
. Item #3 splits the cost assuming $7,500.00 would be EDA's contribution to get this
development rolling,
Underferth:
. Certainly would like to get this development going. Not under the impression the EDA
would be involved. Is the developer asking for help? Who is offering to reimburse the
developer at all? Understanding our consultant would give advice.
. Boyles responded this is in part of the response to the EDA's desire to assure a significant
land inventory remains available for commercial industrial development. The developer
has asked for assistance from an expertise perspective, Roger Guenette has met with the
developer and tried to layout the kind of information the City would need. The developer
will need additional assistance, The developer also needs to do some work on his own.
. Rye commented on his conversation with John Mesenbrink who said they were pulling
together the cost and thought they were fairly close to accomplishing that. The greater
issue is determining what kind of project and development would be out there and what
kind of income it would produce. Would there be a financial gap to justify the use of tax
increment? The additional assistance would be in doing an analysis of type of project,
income and proceeds to determine what financial requirements are needed.
Jader:
. Likes #4 with developer retaining his own consultant. It makes the most sense.
. Change language in item #4 from "EDA would reimburse" to "EDA could consider".
. The developer has to come up with some kind of comprehensive plan for us to make any
kind of decision. He has to that himself.
. Or go with item #1 where the developer retains his own consultant.
Kedrowski:
. Questioned Rye on developer's time line.
. Rye said he did not specify any time line to start the project, but would not want to put it on
the back burner. He needs an understanding of what type of assistance he would need or
get. Some financial projections can take over 5, 10, 15 years. If you are using TIF up front
for development costs which are streets and utilities, that presupposes that over the life of
the district that is going to pay enough money to payoff your bonds for constructing those
improvements or have other guarantees in place.
. What type of marketing would the EDA be expected to do?
. Rye responded the City would provide assistance as far as people calling up or making up
flyers, The City would not actively market property with Realtors,
. Does not disagree with comments allowing the developer to find his own consultant. One
consideration is the fact Roger Guenette is the City's consultant and understands our rules
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Economic Development Authority
Meeting Minutes
March 22, 1999
Schenck:
. Biggest concerns with item #4 is that EDA will reimburse for cost analysis, Would rather
advance a known amount to provide a catalyst to get something going out there and
recapture our funds at a zero cost to the City at that point.
. Second point, it allows carte blanch for the amount the EDA is to reimburse the developer,
Does not like to advance unknown numbers. Put a cap on the amount or a percent cap on
the amount.
. Boyles said this is not intended to be a highly defined statement.
Kedrowski withdrew his motion and stated the following:
MOTION BY KEDROWSKI, SECOND BY UNDERFERTH, TO DIRECT THE
DEVELOPER TO RETAIN HIS OWN CONSULTANT OTHER THAN THE CITY'S
CONSULTANT IN THIS MATTER, ADVANCE RESOURCES, TO PREPARE AN
ANALYSIS NOT TO EXCEED A DOLLAR AMOUNT TO BE DETERMINED ON FURTHER
DISCUSSION. THE EDA WOULD REIMBURSE THE DEVELOPER FOR THE COST
ANALYSIS, IF AND ONLY IF, THE PROJECT REACHES THE CONSTRUCTION STAGE.
Kedrowski explained the Motion.
MOTION AMENDED BY KEDROWSKI, THE REIMBURSEMENT BY THE EDA BE A
NEGOTIATION POINT AT CONSTRUCTION STAGE WITH THE DEVELOPER. SECOND
BY UNDERFERTH.
AND
MOTION TO DIRECT STAFF TO NEGOTIATE THE DEVELOPER AN AGREEMENT WHICH
THE EDA WOULD CONSIDER REIMBURSING THE APPLICABLE COSTS IF THE
PROJECT REACHES CONSTRUCTION STAGE. INCLUDED ARE THE FOLLOWING
CONDITIONS:
1) NOT TO USE ADVANCE RESOURCES
2) COST FACTOR TO BE DEFINED, COMES WITH THE NEGOTIATION,
Vote taken all ayes. MOTION CARRIED.
b) Consider Approval of Signage on Various Roadways Identifying Routes to Prior
Lake.
Boyles presented the staff report describing four signage locations and costs, The question
before the EDA as a matter of economic development, to pursue this expenditure? And if
so, should the funding be set for this year or next?
Comments from the Commissioners:
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Economic Development Authority
Meeting Minutes
March 22, 1999
. Boyles gave the public meeting dates for the coming up issues.
. Suggested adding to the next agenda,
. Do we want to raise the issue of the annexation, from a staff perspective? Boyles
responded a recommendation is going to the City Council and would be appropriate for the
EDA to review and comment. The actual actor in this case would be the City Council.
. Concern that we are technically an EDA, we also have the HRA powers. So there are
implications for housing issues within the context of the discussion.
Barsness:
. City Council approved these work agenda items and have asked for a multi-residential
housing downtown and that would seem to fall in our jurisdiction,
Schenck:
. To Kedrowski's credit he has been pushing HRA's funding. Shakopee and Savage are
receiving massive funding for their downtown projects, If we have the power of the HRA,
how does this interface with Scott County's HRA? Rye said there is nothing to say the
Scott County HRA could co-exist with a local HRA, They have their own sources of funds
and make them available according to what kind of project meets their goals, The City and
EDA opted to use HRA powers and project. There is nothing to say you couldn't
cooperate with the County authority in doing something.
. Does the EDA or HRA have to go through a formal procedure of making the City Council
the HRA? Boyles said the City already has,
. Concerned Prior Lake is losing out on HRA funds.
Barsness:
. If this is not the time, maybe a good time would be with the downtown redevelopment.
. Bill Jaffa seemed enthused to work with the City,
. Suggested arranging a time on the agenda in the near future to hear from the Scott County
HRA and bring the City up to speed,
Underferth:
. Commissioner Gene White certainly wants to promote Prior Lake.
Barsness:
. Suggested in the future we should incorporate EDA with City Council prior to them meeting
with HRA,
10. Announcements:
a) Megabit/High Speed Data Access Questions for Scott Rice and Triax.
Boyles explained the Megabit committee and meeting the demands of providing high speed
access lines to serve high technology companies who might want to develop in Prior Lake.
Boyles stated the meeting dates regarding frontage roads and intersections,
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