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HomeMy WebLinkAboutMay 19, 1997 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING Monday, May 19, 1997 5:30 p.m. Fire Station City Council Chambers 1. Call to Order 2. Pledge of Allegiance 3. Approval of Minutes a) April 28, 1997 4. Consent Agenda - None 5. Presentations - None 6. Public Hearings - None 7. Old Business a) Review purpose and format for EDA Forum scheduled for Tuesday, May 20, 1997. b) Distribution of: . Forum Flyer . PLA Article . EDA Forum Instruction Sheet . Needs 8. New Business - None 9. Other Business a) Finalized EDA priorities b) Finalized EDA process for EDA review of Purchase Agreements and Tax Increment Financing Proposals. 10. Announcements or Correspondence 11. Adjournment, 7:00 p.m. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER MINUTES PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY APRIL 28, 1997 1. CALL TO ORDER: President Barsness called the meeting to order at 7:15 p.m. Present were: President Commissioners: City Attorney Executive Director Barsness Campagnoli Kedrowski Schenck Pace Boyles Commissioner Schmidt was absent. 2. PLEDGE OF ALLEGIANCE: The pledge was not recited. 3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: Motion by Schenck, second by Barsness to approve the March 17, 1997, Minutes adding a confirmation that the Economic Development Authority conducted a March 15, 1997, workshop to become more familiar with development issues in the community. Upon a vote, ayes by Kedrowski, Schenck and Barsness, no nays, and one abstention, Campagnoli. 4. CONSENT AGENDA: a) Staff report on completion of top five priorities. President Barsness asked that the inventory of potential development sites be added to the top priority goals. Commissioner Campagnoli suggested each of the five objectives be labeled as goals and those items at the bottom of the page be incorporated under the appropriate goals as objectives. Motion made by Kedrowski, second by Campagnoli, to approve the 1997 Goals by folding the objectives under the appropriate goals. Upon a vote taken, ayes by Kedrowski, Campagnoli, Schenck and Barsness. 1:\97 files\97 eda \97 edam in \eda4 2897. doc Page 1 b) Consider process of EDA Purchase Agreement and Tax Increment Proposals. Motion by Kedrowski, second by Schenck, to approve the Purchase Agreement and Tax Increment Proposal Procedure. Commissioners Schenck asked for clarification on the statutory sixty day time line. Staff agreed to keep the EDA apprised if this time line came into play or was a problem. Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. 5. There were no Presentations. 6. There were no Public Hearings. 7. OLD BUSINESS: a) Review Conflict of Interest and draft Code of Ethics. City Attorney Pace introduced the agenda item. She indicated President Barsness has expressed a concern about whether he had an inherent conflict of interest because of his position as president of Prior Lake State Bank. Because of the various conflict of interest statutes governing the conduct of public officials, President Barsness thought it was appropriate to have the City Attorney address the Commissioners on the subject. With respect to President Barsness, City Attorney Pace indicated there was a specific statute, Minn. State Statute 471.88 Subd. 11, dealing with Commissioners who are employed by a bank and in the position to make loans. The City Attorney reviewed generally the various conflict of interest statutes, using a handout which had been prepared by the League of Minnesota Cities to use at the City Attorney update. Each Commissioner had previously received a copy of the handout. The City Attorney indicated that any Commissioner who believes they may have a disqualifying conflict of interest should feel free to consult with her. If there is a situation where the Commissioner would receive a direct pecuniary benefit from a matter before the Commissioner may have a disqualifying conflict of interest. The City Attorney reviewed a 5 part test outlined by the Minnesota Supreme Court to evaluate potential conflict of interest issues. Motion made by Schenck, second by Kedrowski, to accept the City Attorney's report on Conflict of Interest and Code of Ethics. Upon vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. 1:\97fi1es\97 eda\97edamin\eda42897 .doc Page 2 8. NEW BUSINESS: a) Finalize discussion on strategy and first steps for proceeding with the Priordale Mall Redevelopment project. Consultant Guenette indicated he would be surprised if Flemming Company moved forward with the $15,000.00 market study to determine whether this is the right site. The joint meeting was not as clear and direct as they would have liked to see. Commissioner Kedrowski suggested it would be appropriate to go ahead with the Guenette proposal to conduct an economic development forum but work as well not to loose the Amcon proposal. He suggested that it may be appropriate to discuss this matter further with the City Council and have a sounding from them. Commissioner Campagnoli stated that the proposal by Amcon to loosely presented and she can not support it without more specific data. Consultant Guenette indicated the last project fell apart after the developer came forward with very specific details. The Council did not want commercial retail on the site as proposed for that developer. Consultant Guenette suggested it would be appropriate for the City to respond by determining whether the Council wishes retail on the site as well as other specifics. He confirmed there will be no Lunds or Byerly's on the site. Grocery stores tend to be part of the template for developers. Certain stores partner with certain developers. It would be possible for the EDA to encourage some other grocery store or layout or even a different facade which would be appropriate for Prior Lake. What EDA needs to know is whether there is fundamental support for commercial retail at this site. He also believes it is important to know whether the public supports such a process and project. Attorney Pace stated that Consultant Guenette is describing a charette. Through a meeting, ideas and visions are converted into concepts which can be placed on paper in schematic form. Consultant Guenette stated that his concept would involved breaking down into small groups of 10 to 15 persons. Each group would be responsible for providing input on specific questions about the redevelopment process, City identity, etc. Then the groups would re-form as a large group to record their conclusions. This information would be used by the EDA and City Council in determining what steps if any, would be appropriate to play in future redevelopment. Commissioner Campagnoli stated that she believes it is important to have cold hard facts first. For example, what is Savage going to do with County Road 42 and State Highway 13 intersection. Why don't we know? Consultant Guenette suggested any commercial retail in the Priordale site will include a grocery store. He indicated that from a City cost perspective is the best we can do is to 1 :\97fi1es\97 eda\97 edam in\eda42897 .doc Page 3 buy down the land reclamation costs. Commissioner Kedrowski stated that we are redeveloping an underused asset in the City and that in itself is a benefit. He recognizes the existing businesses are a strength. Consultant Guenette indicated the new building will rent in the vicinity of $12 to $18 per square foot. Grocery stores will get a $4 to $6 per square foot cost because they are in command of the malls. Consultant Guenette discussed the implications of do-nothings associated with potential bankruptcy proceedings with the Priordale Mall and as it relates to the new tax increment financing legislation. President Barsness asked whether there is a purchase agreement for the mall. Consultant Guenette indicated that it is his understanding it is a $2 per square foot or 1.5 Million Dollars. President Barsness expressed concern about becoming caught in the middle between the two parties. He indicated that the project is none the less important because it is the single largest land holding in the community available for redevelopment. Consultant Guenette discussed the potential for acquiring other parcels to assemble as part of the project and having known developers involved to build a grocery. President Barsness stated he was pleased that Festival was a strong franchise on one hand but he would prefer theaters and other uses over another grocery. Motion by Kedrowski, second by Schenck, to direct the staff to prepare for an economic development forum for Tuesday, May 20, 1997 at 7:00 p.m. to solicit public input regarding the proposed redevelopment project. Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. By general consent the Economic Development Authority agreed that the May 19 meeting should be used as a rehearsal for the May 20 forum. President Barsness stated he will talk to the Prior Lake American Editor to ask if they would support and publish, announcements about this meeting. 9. OTHER BUSINESS: Motion made by Kedrowski, second by Schenck to authorize the staff to prepare an appraisal for the T.J. Towing prop~rty. Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. 7 dioumC'al consent at 9:05 p.m. The meetin ~~{' Page 4 .-- ------rr- / Frankly Speaking / SHARE YOUR VISION ON PRIOR LAKE REDEVELOPMENT The Prior dale Mall and drive-in Theater area have been identified by the Prior Lake Economic Development Authority as key areas for redevelopment in our community. Over the last few years, three development proposals have been submitted on these sites, but no redevelopment is underway. The reason? EDA members and the Planning Commission met on April 28th to focus on this dilemma. They concluded that while most agree that the commercial resale / redevelopment of this area is essential, there is no shared vision of what the area should become. In the last two decades, a number of studies have been conducted to define the downtown area. The most recent of studies, Prior Lake 2000, is at least 10 years old. The community has radically changed since that report was developed. To use data provided by today's Prior Lake residents and business persons, a forum is scheduled for Tuesday, May 20, 1997 at 7:00 p.m. at the Prior Lake Fire Station. All Prior Lake citizens and business owners need to attend. What is at stake is your input on whether these important redevelopment projects should take place and if so, what they should be. For example, what kind of businesses should be incorporated in the redevelopment area? Should it be existing businesses only, or should substantial opportunity be provided for new, underrepresented businesses in Prior Lake? Should the facility be designed to reflect a Prior Lake uniqueness, or should it simply be like every other "strip mall". What public investment, if any, should be provided to facilitate this effort? The results of this forum will not be a report which will be filed and forgotten. Instead, the data will be used to provide guidance to the Economic Development Authority and ultimately the City Council on if and how redevelopment should be undertaken. This forum is a great opportunity for each of us to share our positions and in doing so become co-authors of the economic development revitalization of Prior Lake. To be valid, the attendance of both Prior Lake business persons and residents is critical. Please spend a few hours with us so we can benefit from your vision. You won't regret it! For further information about the forum, contact me at 447-4230. H:\CMANAGER\ W A VLENGH\597REDEV. DOC ~~__u I: a, EDA Forum 5/20/97 7:00 p.m. Purpose: To determine what should happen if anything to the 30 acre commercial/retail site upon which Priordale Mall is located and what role, if any, the City should play. Assumptions: Land is and will be Commercial/Retail. There are viable businesses on the site but there is a consensus that the site does not presently realize its full development potential. Specific Questions: What type of commercial/retail development should exist at this location? Please specify types of businesses, structures, or design form that the development should embody. What issues must be addressed to assure the implementation of this redevelopment concept (i.e. preferred design, relationship to other commercial areas, etc.). To what extent should the City be a financial participant? I:\EDA.DOC Needs: . Who facilitates: Need 5 . Break out rooms need to be reserved with 10-15. . Flip Charts for each group. . Instructions for each group on flip chart paper. Question Ion sheet, Question 2/3 on separate. . Training for facilitators. . Markers (that don't bleed through to wall) . Cookies - for 100. . Coffee / pop for 100. . Small pads paper for 100. . Pencils. I:\EDA.DOC ECONOMIC DEVELOPMENT AUTHORITY PRIOR LAKE, MINNESOTA MISSION STATEMENT PROMOTE THE BUSINESS ASSETS OF PRIOR LAKE AND FACILITATE A DIVERSIFIED TAX BASE. GOALS 1. Prepare redevelopment plan and policy for Priordale MalVPark Nicollet site to facilitate expeditious redevelopment. 2. Prepare Tax Increment Finance Policy statement, and review and comment on County TIF, Local Effort TIF and Economic Development policies. 3. Expand Business Office Park.(On going) Develop incentives to encourage Prior Lake residents to establish and maintain their businesses within the City. Continue to market existing business park properties. 4. Meet with downtown property and business owners to explore redevelopment opportunities. Develop a culture which encourages and supports business acquisition and retention 5. Develop a plan to capitalize on traffic generated by Shakopee Mdewakanton Dakota Community and The Wilds. Develop promotional materials. Explore economic development linkages with Shakopee, Savage and the Dakota Community. 6. 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 Explore the relationship between housing availability and business development 16200 Eil~r1f?t(9(B~. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ECONOMIC DEVELOPMENT AUTHORITY REPORT AGENDA #: PREP ARED BY: SUBJECT: DATE: INTRODUCTION: ACTION REQUIRED: 9B JANE KANSIER, PLANNING COORDINATOR REVIEW OF EDA PROJECT APPROVAL PROCEDURES MAY 19, 1997 At the last EDA meeting, the Board discussed a preliminary draft of a guideline for Project Approval Procedures. During the discussion, the Board identified several changes that were needed. Attached is the revised Project Approval Procedures guideline. This guide lists the fifteen steps in the approval of an EDA project. The italicized words indicate the party responsible for each step, such as staff, EDA, or developer. A motion and second to adopt the EDA Project Approval Procedures. 1:\97files\97eda\procrpt.doc Page 1 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 PROJECT APPROVAL PROCEDURES 1) EDA establishes goals and objectives (EDA) 2) Advance Resources for Development acts as agent for EDA (Staff) 3) Advance Resources proposes projects to EDA (Staff) 4) EDA approval/denial of project in concept (EDA) 5) Concept goes to City Development Review Committee (DRC) for concept plan review and comment (Staff) 6) Advance Resources negotiates with Developer (Staff) 7) Advance Resources prepares preliminary documents, which include comments from DRC on concept plan review (Staff) 8) EDA approves documents to assure consistency with concept plan approval (EDA) 9) City Attorney reviews documents (Staff) 10) EDA recommends approval or approves applicable agreements for City Council consideration, subject to site review approval including, but not limited to, variances, CUP's, PUD's. Comprehensive Plan amendments, rezonings and subdivision approvals (EDA) 11) Developer submits site plan, including necessary zoning applications, for official action (Developer) 12) Staffreviews plans according to applicable Zoning and Subdivision Ordinance requirements and refers to Planning Commission and/or City Council as necessary (Staff) 1:\97files\97eda\proceed.doc 5/14/97 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 13) Documents granting necessary approvals are incorporated into agreement in Paragraph 7 (Staff) 14) Obtain any required City Council approvals (Council) 15) EDA and Developer execute agreement (EDA, Staff, and Developer) 1:\97 fi1es\97 eda\proceed.doc 5/14/97 MINUTES PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY APRIL 28,1997 1. CALL TO ORDER: President Barsness called the meeting to order at 7: 15 p.m. City Attorney Executive Director Barsness Campagnoli Kedrowski Schenck Pace Boyles Present were: President Commissioners: Commissioner Schmidt was absent. 2. PLEDGE OF ALLEGIANCE: The pledge was not recited. 3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: Motion by Schenck, second by Barsness to approve the March 17, 1997, Minutes adding a confirmation that the Economic Development Authority conducted a March 15, 1997, workshop to become more familiar with development issues in the community. Upon a vote, ayes by Kedrowski, Schenck and Barsness, no nays, and one abstention, Campagnoli. 4. CONSENT AGENDA: a) Staff report on completion of top five priorities. President Barsness asked that the inventory of potential development sites be added to the top priority goals. Commissioner Campagnoli suggested each of the five objectives be labeled as goals and those items at the bottom of the page be incorporated under the appropriate goals as objectives. Motion made by Kedrowski, second by Campagnoli, to approve the 1997 Goals by folding the objectives under the appropriate goals. Upon a vote taken, ayes by Kedrowski, Campagnoli, Schenck and Barsness. I :\97files\97 eda\97 edamin\eda42897 .doc Page 1 b) Consider process of EDA Purchase Agreement and Tax Increment Proposals. Motion by Kedrowski, second by Schenck, to approve the Purchase Agreement and Tax Increment Proposal Procedure. Commissioners Schenck asked for clarification on the statutory sixty day time line. Staff agreed to keep the EDA apprised if this time line came into play or was a problem. Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. 5. There were no Presentations. 6. There were no Public Hearings. 7. OLD BUSINESS: a) Review Conflict of Interest and draft Code of Ethics. City Attorney Pace introduced the agenda item. She indicated President Barsness has expressed a concern about whether he had an inherent conflict of interest because of his position as president of Prior Lake State Banle Because of the various conflict of interest statutes governing the conduct of public officials, President Barsness thought it was appropriate to have the City Attorney address the Commissioners on the subject. With respect to President Barsness, City Attorney Pace indicated there was a specific statute, Minn. State Statute 471.88 Subd. 11, dealing with Commissioners who are employed by a bank and in the position to make loans. The City Attorney reviewed generally the various conflict of interest statutes, using a handout which had been prepared by the League of Minnesota Cities to use at the City Attorney update. Each Commissioner had previously received a copy of the handout. The City Attorney indicated that any Commissioner who believes they may have a disqualifying conflict of interest should feel free to consult with her. If there is a situation where the Commissioner would receive a direct pecuniary benefit from a matter before the Commissioner may have a disqualifying conflict of interest. The City Attorney reviewed a 5 part test outlined by the Minnesota Supreme Court to evaluate potential conflict of interest issues. Motion made by Schenck, second by Kedrowski, to accept the City Attorney's report on Conflict of Interest and Code of Ethics. Upon vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. 1 :\97fi1es\97 eda\97 edamin\eda42897. doc Page 2 8. NEW BUSINESS: a) Finalize discussion on strategy and first steps for proceeding with the Priordale Mall Redevelopment project. Consultant Guenette indicated he would be surprised if Flemming Company moved forward with the $15,000.00 market study to determine whether this is the right site. The joint meeting was not as clear and direct as they would have liked to see. Commissioner Kedrowski suggested it would be appropriate to go ahead with the Guenette proposal to conduct an economic development forum but work as well not to loose the Amcon proposal. He suggested that it may be appropriate to discuss this matter further with the City Council and have a sounding from them. Commissioner Campagnoli stated that the proposal by Amcon to loosely presented and she can not support it without more specific data. Consultant Guenette indicated the last project fell apart after the developer came forward with very specific details. The Council did not want commercial retail on the site as proposed for that developer. Consultant Guenette suggested it would be appropriate for the City to respond by determining whether the Council wishes retail on the site as well as other specifics. He confirmed there will be no Lunds or Byerly's on the site. Grocery stores tend to be part of the template for developers. Certain stores partner with certain developers. It would be possible for the EDA to encourage some other grocery store or layout or even a different facade which would be appropriate for Prior Lake. What EDA needs to know is whether there is fundamental support for commercial retail at this site. He also believes it is important to know whether the public supports such a process and project. Attorney Pace stated that Consultant Guenette is describing a charette. Through a meeting, ideas and visions are converted into concepts which can be placed on paper in schematic form. Consultant Guenette stated that his concept would involved breaking down into small groups of 10 to 15 persons. Each group would be responsible for providing input on specific questions about the redevelopment process, City identity, etc. Then the groups would re-form as a large group to record their conclusions. This information would be used by the EDA and City Council in determining what steps if any, would be appropriate to play in future redevelopment. Commissioner Campagnoli stated that she believes it is important to have cold hard facts first. For example, what is Savage going to do with County Road 42 and State Highway 13 intersection. Why don't we know? Consultant Guenette suggested any commercial retail in the Priordale site will include a grocery store. He indicated that from a City cost perspective is the best we can do is to 1:\97 files\97 eda\97 edamin\eda42897 .doc Page 3 buy down the land reclamation costs. Commissioner Kedrowski stated that we are redeveloping an underused asset in the City and that in itself is a benefit. He recognizes the existing businesses are a strength. Consultant Guenette indicated the new building will rent in the vicinity of $12 to $18 per square foot. Grocery stores will get a $4 to $6 per square foot cost because they are in command of the malls. Consultant Guenette discussed the implications of do-nothings associated with potential bankruptcy proceedings with the Priordale Mall and as it relates to the new tax increment financing legislation. President Barsness asked whether there is a purchase agreement for the mall. Consultant Guenette indicated that it is his understanding it is a $2 per square foot or 1.5 Million Dollars. President Barsness expressed concern about becoming caught in the middle between the two parties. He indicated that the project is none the less important because it is the single largest land holding in the community available for redevelopment. Consultant Guenette discussed the potential for acquiring other parcels to assemble as part of the project and having. known developers involved to build a grocery. President Barsness stated he was pleased that Festival was a strong franchise on one hand but he would prefer theaters and other uses over another grocery. Motion by Kedrowski, second by Schenck, to direct the staff to prepare for an economic development forum for Tuesday, May 20, 1997 at 7:00 p.m. to solicit public input regarding the proposed redevelopment project. Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. By general consent the Economic Development Authority agreed that the May 19 meeting should be used as a rehearsal for the May 20 forum. President Barsness stated he will talk to the Prior Lake American Editor to ask if they would support and publish, announcements about this meeting. 9. OTHER BUSINESS: Motion made by Kedrowski, second by Schenck to authorize the staff to prepare an appraisal for the T.J. Towing property. Upon a vote taken, ayes by Barsness, Campagnoli, Kedrowski and Schenck. , The meetin dioumC'al consent at 9:05 p.m. ~IL~( . . Frank ~~ Cit}) Manager 1:\97f~edamin\eda42897.dOC Page 4