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HomeMy WebLinkAboutSeptember 15, 1997 Ll MEMORA1~DUM TO: EDA MEMBERS FROM: DONALD RYE, PLANNING DIRECTOR DATE: SEPTEMBER 10, 1997 SUBJECT: REVISED AGENDA FOR SEPTEMBER 15TH MEETING You no doubt have noticed by now that the minutes included in your package were a rough draft and not the finished product. Enclosed are the finished minutes with our apologies. Also, with regard to the Steering Committee for Downtown Redevelopment, agenda item 9B should be added. Attached are the applications staff has received from Downtown business operators expressing their interest in being on the Steering Committee. The EDA should select two of these people for membership on the Steering Committee. The EDA should also think about the charge to this Committee in terms of involvement, responsibilities, meetings and so on. The Committee then needs to be convened and the process commenced. For those who may not have seen the paper last Saturday, the City Council directed staff to prepare an ordinance establishing a moratorium on new development in the Downtown Redevelopment area for a period of six months. The moratorium is intended to protect the planning process and allow the City to develop a plan for Downtown without the plan being compromised by development in the process. 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, September 15,1997 5:30 p.m. Fire Station City Council Chambers 1. Call to Order 2. Pledge of Allegiance 3. Approval of Minutes 4. Consent Agenda 5. Presentations a) Jim Stanton - Development at County Roads 42 and 83. 6. Public Hearings 7. Old Business 8. New Business a) Roger Guenette - Financing options for downto\Vn development 9. Other Business a) Goals 1997 Update b) Report on formation of steering committee for downtown redevelopment. 10. Announcements or Correspondence 11. Adjournment, 7:00 p.m. 16200 Eagle Creek Ave. S.L 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 MEETING Monday, August 18, 1997 1. CALL TO ORDER: President Barsness called the meeting to order at 5 :30 p.m. Present were: Commissioners Barsness, Kedrowski, and Underferth, Executive Director Boyles, City Attorney Pace, Planning Director Rye, Planning Coordinator Kansier, Planner Tovar, Parks and Recreation Director Hokeness, and Consultant Guenette. Commissioners Campagnoli and Schenck were absent. 2. PLEDGE OF ALLEGIANCE: President Barsness led the Pledge of Allegiance and welcomed everyone to the meeting. 3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: MOTION BY UNDERFERTH SECOND BY KEDROWSKI TO APPROVE THE MINUTES OF THE JULY 21,1997 ECONOMIC DEVELOPMENT AUTHORITY MEETING. Upon a vote, ayes by Barsness, Kedrowski, and Underferth, the motion carried. 4. CONSENT AGENDA: There were no items on the Consent Agenda. 5. PRESENTATIONS: This item was deferred. President Barsness said Bill Jaffe of the Scott County Housing Redevelopment Authority wants to make a presentation at the October 20th meeting. 6. PUBLIC HEARINGS: There were no Public Hearings. 7. OLD BUSINESS: A) Approval of 1998 EDA Budget for Recommendation to the City Council. MOTION BY KEDROWSKI SECOND BY UNDERFERTH TO APPROVE THE 1998 BUDGET FOR THE EDA. . Commissioner Underferth asked about the $10,000 for Advance Resources, and he said in other material Advance is asking for $20,000. r:\council\minutes\eda818.doc . Executive Director Boyles said the dollar amount is an estimate of how many TIP packages will be put together. He said Guenette's concern is that they have historically had Waterfront Passage Park, and there are other areas of economic development coming up. They talked about the possibility of providing additional pay if additional work is done. The budget as it stands can be adopted and still can meet Guenette's concerns. . President Barsness called the question. Upon a vote, ayes by Barsness, Kedrowski, and Underferth, the motion carried. 8. NEW BUSINESS: a) Discuss Allocation of Resources and Action Steps Regarding Downtown Redevelopment-Don Rye (see attached Prior Lake Design Study and Library R.F.Q')' . Executive Director Boyles introduced the item. The EDA directed staff to look at downtown redevelopment. Planning Director Don Rye sent a memo to EDA regarding specific redevelopment issues. . Planning Director Rye at the previous meeting had asked Consultant Guenette to look at what was done in the past. They decided to make the Prior Lake Design study available. It is 12-13 years old, but many ideas seemed to Planning to be viable. It seemed that because of the interest of several different bodies, that they should try to coordinate the efforts of all groups and try to get the most use of all of the resources. He outlined the major duties and responsibilities of the groups involved. A steering committee involving two EDA members, a representative from Planning Commisson, one from Friends of the Library, one from the Parks Advisory Committee, and two downtown business owners will be selected. He said then staff would provide assistance to this group to develop a plan of attack. The question is whether the EDA thinks this is a reasonable approach. . Commissioner Underferth said a steering committee was a good idea. He asked if Planning Director Rye had thought about the scope. . Planning Director Rye said physically, the master plan is Lakefront Park and the necessity of connecting Priordale Mall to downtown. As far as activities it could encompass, the sky is limit at this point. . Commissioner Kedrowski asked about a timeline. r:\council\minutes\eda818.doc 2 . Planning Director Rye said it will be established quickly. He said a consultant is being selected for the library. This group will have to come up with something in the next three months. . President Barsness asked if they should present it to the City Council. . Executive Director Boyles said it will close all the loose ends to present it to the Council. They would feel good about seeing the actions come forward. He said Task Forces have worked quite well. He said it could work the same here. . Councilmember Kedrowski said it could be presented to the Council the first meeting in September. . Consultant Guenette said the EDA has the ability to form a committee. They could just indicate to the City Council that the EDA made an appointment. It is an attempt to facilitate information flow to the various affected entitie. . President Barsness asked whether Consultant Guenette suggested appointing members at this time. . Parks and Recreation Director Hokeness said as far as a time frame, they will be selecting an architectural firm on the tenth of September. They will start in with conceptual design plans. To expand, they will have to move on Plan and Design in the winter. They plan for the Library to open in the Spring of 1998. . Executive Director Boyles said the EDA could ask Commissioner Kedrowski to address the issue under other business to the City Council at tonight's meeting. . President Barsness said perhaps the committee needs the leadership of someone from City Council. They want to avoid something that takes on a life of its own. . Consultant Guenette said Parks and Recreation Director Hokeness has been given the responsibility of selecting an architect. He said Hokeness has been approached by downtown property owners about redevelopment. There are key property owners downtown who are interested in redevelopment. One thing they ought to be doing is authorizing appraisals to see ifthere is affordability. MOTION BY KEDROWSKI SECOND BY UNDERFERTH TO RECOMMEND FORMATION OF A STEERING COMMITTEE CONSISTING OF 1 PLANNING COMMISSIONER, 2 EDA COMMISSIONERS, 1 P ARKS ADVISORY COMMISSIONER, 1 FRIENDS OF THE LIBRARY MEMBER, AND 2 DOWNTOWN BUSINESS OWNERS. Upon a vote, ayes by Barsness, Kedrowski, and Underferth, the motion carried. r:\council\minutes\eda818.doc 3 . President Barsness asked about a street -scape plan. . Planning Director Rye said they found large rendering architectural drawings of downtown. . President Barsness said it had been less than ten years at the time and the City had decided not to proceed because less than 50% of private property owners were interested. . Commissioner Kedrowski said another question is that section of road, Main Street, and whether it is going to turn back. . Planning Director Rye said he would guess that the County would like to do that. . Councilmember Kedrowski the estimate had been around $75.00 per foot with lighting, brick pavers, trees, etc. A number of property owners said it was not worth it to the businesses. . Consultant Guenette said it would be easy to update. . Commissioner Kedrowski said the phone company was an advocate. . Executive Director Boyles said City Council direction to staff was to investigate tumbacks. He said based upon conversation with City Engineer Ilkka he is getting together with the County within the next 30 days. . Consultant Guenette said he would like to have the permission of the EDA to get together with people to talk with property owners and seek appraisal. He wants to let them know that the EDA will get back to them in the near future. . Executive Director Boyles said there will be two members of the downtown on the steering committee, so it was probably not necessary to meet with them individually. B) Report on Financing Options on EDA activities -Roger Guenette. . Consultant Guenette addressed his memo on the status of the City's Tax Increment Accounts. His analysis indicates that $429,000 will be generated by the districts. The City sold general obligation improvement bonds, contracts for deed, and obtained cash by prepaying assessments on the fire hall and maintenance garage. All of those proceeds were used to pay for Waterfront passage. The title was transferred to Waterfront Passage. The money will come to the EDA. It is not presently in an account. The EDA has used it to payoff bonds and the contract for deed. TIP increments did not start to come in until' 95 or '96. The amount of increment flowing r: \council\minutes\eda818 .doc 4 ------:r in is about $90,000 per year. There are two more parcels to sell. The City will replenish the EDA with the land sale proceeds. . The City has used increment and land sale proceeds money to pay the debt from bonds, assessment funds, until TIP becomes substantial. The EDA will payoff the rest of the debt. The TIP goes to the City not the EDA. . President Barsness asked about the excess increment. . Consultant Guenette said the bonds were for repaying the trunk fund. The City showed a profit on land sale. . President Barsness said he thought the EDA would have the funds available. . Consultant Guenette said they would get sale proceeds, not increments. . Commissioner Kedrowski asked about the options. . Consultant Guenette said the leverage debt was based on an income screen. . Commissioner Kedrowski said the City could capture initial land and it could be used immediately for redevelopment. . Consultant Guenette said the cost to bring utilities out there would be in excess of $600,000. Finding money to spend downtown will be difficult. . Commissioner Underferth asked whether the City will have restrictions on the additional money. . Consultant Guenette said yes. . Commissioner Underferth asked whether it would be easier to use the money if it were used in that area. . Consultant Guenette said it would have the same set of restrictions. . Commissioner Kedrowski asked if the EDA should direct staff to prepare long term options for the money. He said there should be more than one option. . President Barsness asked about the criteria for what will be the best option. He said they should try to look at some issues to base a policy decision on . . Consultant Guenette said he will try to provide some information. r:\council\minutes\eda818.doc 5 . Commissioner Kedrowski said the areas being considered should be outlined so they can put the area on the map. He asked what kind of motion is needed. . Commissioner Underferth asked whether the TIP district be expanded to utilize 100% of the increment. . Consultant Guenette said they could be expanded or create new TIP districts. . City Attorney Pace said they could expand but creating new districts would not get around 20%. 9. OTHER BUSINESS: A) Status of Sale of Property in the Waterfront Passage Business Park. . Consultant Guenette spoke with NBC Products Tony Shanks. He is considering listing his property and moving to another location. They spoke about the one acre lot. They talked about an arrangement and will talk some more next week. Dave Hanson took project over from Mr. Anderson. . He said Mr. Anderson said he did not want the option. They would try to work something out, a right of first refusal. He wants exclusive option until January 1st without cost. Consultant Guenette indicated to Mr. Hanson that they were working with another tenant and he would communicate to EDA. B) 1997 Goals and Objectives Review. . Commissioner Kedrowski whether the City was waiting for developer? . Executive Director Boyles said the next step will be from Planning Department. . Consultant Guenette said he heard from Bodermans that they will be partners in the redevelopment, which is a complete shift from the earlier position. . Councilmember Kedrowski said they did not address the ring road asked if it could be addressed. . Planning Director Rye said up to this point it did not impinge on the property. There may be a right of way required. . Executive Director Boyles said they were waiting for additional materials from Gabrielson. . Commissioner Barsness asked about objective #6. r:\council\minutes\eda818.doc 6 . Executive Director Boyles said had they not worked on it yet. . Planning Director Rye said one possible step the City could take was to designate the ring road on an official map. This designates the City's interest, and gives time to possibly acquire right of way. Requires survey. City Council would have to approve. They would survey the center line, and depict it on an official map. This allows certain rights to remain with the City. . City Attorney Pace said that assures the City if actually purchased it and it was condemned, they would not pay for impre de facto moratorium. MOTION BY UNDERFERTH SECOND BY KEDROWSKI TO FORWARD PROPOSAL FOR OFFICIAL MAP TO CITY COUNCIL Upon a vote, ayes by Barsness, Kedrowski, and Underferth, the motion carried. F ALL FEST --EDA tables representative from EDA 6:30 - 8:30 10. ADJOURNMENT: The meeting was adjourned at 7:00 p.m. r:\council\minutes\eda818.doc 7 8. A DVANel DATE: September 4, 1997 TO: Prior Lake EDA FROM: Roger Guenette RE: Financing Options For Downtown Redevelopment In order to promote downtown redevelopment activities, it is likely that the EDNCity will be called upon to provide public funding support in some manner. Potential activities that may be assisted by public funding including: acquisition of existing buildings, parking improvements, sidewalk or street replacement, lighting, landscaping, utilities, facade renovation, etc. In the event that the EDNCity determine that it is appropriate to assist the redevelopment effort by providing funding support there are a variety of finance strategies which could be employed. These funding strategies include: . Utilization of TIF revenues. There are two existing tax increment districts which encompass a portion of the downtown area. Revenues from these TIF districts and/or revenues from a new TIF district could be used to fund redevelopment activities. The amount of funding potential is dependent upon the extent of the redevelopment investment that may be made within the tax increment districts. Present TIF revenues from existing districts in and around the downtown are approximately $60,OOO/year. . Assessment DeferrallForgiveness. The EDNCity could choose to defer or forgive utility/street assessments as an inducement to promote redevelopment. If this strategy was implemented, the City would need to identify other funding sources to finance that portion of the assessment which was deferred/forgiven. . Establishment of a Revolving Loan Fund. The EDA could allocate resources that will be received from land sales in WaterFront Passage Business Park into a revolving loan fund in order to provide incentive financing for facade renovation, landscaping, etc. on the part of downtown business owners/operators. . Tax Abatement. As an alternative to the use of TIF, the EDNCity could establish a tax abatement program whereby the downtown property owners would receive a rebate of the City portion of the real estate taxes generated as a result of redevelopment activities. The property owners would continue to pay real estate taxes due to the school district and county. Business Finance and Economic Development Specialists :: ~~',c., fE p,o, Box 2.:=::09 Viols. \'11\1 55~32.1J6C': Phone: ,~6;='_: 755-33C~ ~ox: /,::' 2) -:5-7....J I PO Box 3027 Monkato Mf\i";:;C\J:::.3C'::' Pt-.one ,507, 38- .,.- Fax: (507) 387 -6 ~ 5- ECONOMIC DEVELOPMENT AUTHORITY PRIOR LAKE, MINNESOTA MISSION STATEMENT PROMOTE THE BUSINESS ASSETS OF PRIOR LAKE AND F ACILIT ATE A DIVERSIFIED TAX BASE. GOALS 1. Prepare redevelopment plan and policy for Priordale MalllPark 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 ~<g1\H~1~R9ftfe. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 09/10/1997 13:12 5514475324 . WILLOWGREENE PAGE 01 WllLO\t\'G'REENE 'Phone 6)2-447-5300 16ZZ1 ;Ualn .,;(venue SE #2.01 Tax 612.-447-5324 'Prior Cake. ),(Innesota 55372. J-888-534-6957 l=tH-N': CM~ Q~(50^ \0' ~O~ Lck ~ '--fY)~- Q ~ do~ -bw('\ b~ OW~ ~ --P~o"" L*k b~) ~ ~ ~ ~Of\~ Com'dt./!-L 4 6~ ~ or JU.. --..Q ~ -=e --9.^O't ~cd-t~ CtlLcl Qrd..c...+L'c~ l~ ~ VA- t=tt.ecl',,?-- "--ft 0.-. 6M. - ~}~~"Y d..ow"-~" ~~ ~ ~ \:K~r- ~ ~(~ Qo~",~ ~ LJu. ~ ...$t\~ I Co c..o '- { ("~tY\~l~ .J7orvers and }{erbs and Other fin~ AUG-28-1997 15:47 VIERECK FIREPLACE 861 0456 P.01/01 Custom Grief a;ncf stone firepCa.ce.s Wood" stoves, g[ass fi.repCa.c.e endiJs'Ure5 Cei[ing fans J cuuf sa:u.ru1S Viereck safes Inc. Paul]. Viere&. (612) 44P5620 ;Z; ~"I~ This application is for residents interested in serving as a volunteer on a Board or Commission in the City of Prior Lake. Appointments are made by the City Council. Name: KARL btN6MArv' ~ddress: lbll~ f'Jf\\,J A~ Phone (H): q if? - ZJ=1CA 0V): )-( q. 7 -?k: <f<-f Date: c:>; . '8'" Cf7 Appointment Sought: ~~~\2A.VN ~\<'-f&-cl:- How did you find out about this position? p. l..-' A t'V::R-\ CA, rJ Briefly describe your qualifications including education, experience, and skills for the position (attach a resume if you wish): ~u'f'I~.rJ B.1.S\ rJ6SS ~~ I 0 iE.AR-~ Briefly describe your interest in this position and how you can serve the community: 0"Y (~3T,S I sJ I NfRDl\ ~ --n-1f- ~~rJ A~Pr- references that we WlO:-~f2- 44/- L,Ofh may contact: \)\C~~~<=t Please ~ ~1; ,any t- eA I\J k: c; ,1A-t\H; Signature: es y'ou would be available for meetings: " Please indicate days I:\ASSTMGR\B1PLOY:>.iTADV AP.DOC --- ---- -- -- ~ - --------- References for; Paul Vierick Vicrick Fireplace Sales Dov,mtown. Pnor Lake +40-5620 Karl Dingman. Kully Supply Company i 6173 :Vldlll .-\ venue Pnor Lake, :vIN 553i2 447-2644 Downtown T :.lSk Fora Bob Johnson _-\-1 Auto Body DC'NTltewn., ?tier Lake 44"'-2560 Frank & Jane Wicker Wicker Building Downtown. Pncr Lake 447-6040 Brian Davis E.'q)re68 G.ls &. Groceries, Fire DeplU1:rnem Dov"ntowTl., Priur Lake 447-4005 Steve Coman Remote Effects Systems DowntoVvn. Prior Lake .t4'7 - ':'9":'6 LJ.r~~y Adle~ Extr.1 [nn.lllgs Silicon Downtown. Pnor Lake M'7-9900 Dm o~ :<~=l~ Ron Bliss Dental Office Downto.....'!'~ ?ncr Lake 894-4086 Green Heights Restaurant Prior Lake 440-2582 Pat Pat's Beauty DO,,"11tO,,"11., ?ricr Lake 447-2157 Bruce Olsen OO'.....ntO'NTl Resident Prior Lak~ 226- 2423 John Spielman Beaudc:tte \\i ater ConclitlOning Oowntov.n. Pncr Lake 447-2620 Cleo Kubes Downtown Resident Prior Lake .wi -68..14 Jerry & Bamue \-lax:vell J&B Flllmn..iI~ DmVnrO\"\TJ... Pnor L:lke .lr-21Cl :Vi::!!}; :V[a.~.~ll Dov.- nrov.-n R,;side;lt P:1or Lcl;.e 447., 50 l..l Georgarule ulllor. Native Amencan Sc..rvl.ces Dc?mtown. PriGr Lake 440- ':"370 Sue Dld~i.:n lnir~c: Stat~s prJstai Scr,1cc Downtoo;vn :Vlatlperson 145-iFC4 Dave ~loline Pearscn' 5 Aut,~ 3cdy Du......ntoVVTl.., ?n01 LLl..;:; 440- 2639 Mike Dmgman Scraight Line Frame & Alignment DO\V!"..!i:",'t.":l.. ?~Gr LJ..lce I \- 1'- ,.... --+...,., - t ~~ To Whom It May Concern: I would appreciate consideration for appointment to the Downtown Development Stl::cring Committee for Prior Lake. A resident of Prior Lake for two years, I believe that the Downtnwn 8I'Cll creates an oppornmity to defme and highlight the unique nature of our community. I have thirteen years experience in real estate development and conswction and am currently employed as the Presideftt and Chief Operating Officer of my family's Business, Gresser Concrete & Masonry. If there is concern regarding a conflict ofinta'est reWcd 1'0 my career, I would be glad to exclude myself, in writing, from development or conswctiOll in the Downtown district. As someone who understands dcvclopIlllmt and is also Vf:f'j conc:emed about thc future of the city I believe I could bring elements of realism and creativity to the committee. Currently I serve as a board member of the Prior Lake Association, the Minneapolis Builders Exchange and the Minnesota Labor !Management Workers Compensation Trust Fund.. I also have extensive experience in labor negotiations through the Associated General Contractors and believe strongly that almost all problems c:an. be solved in a win-win manner. Thank you for your consideration, ~ZC- 15871 Island View Road 44()" 7165 2'd S~W/3~3~~NO~-~3SS3~~ 8S:vl L6, 80 d3S NOV-03-1997 14:54 FROM RDVRNCE INC. TO PRIOR LRKE-CITY P.02 ~~~~.!!~~ TO: Prior Lake EDA FROM: Roger Guenette DATE: October 30, 1997 RE: Development Incentives In South Suburban Communities I have contacted several communities in the south Metro area to ascertain their policies for utilizing TIF in support of commercial/industrial development. Following is a summary of the information they provided: · Lakeville -- The City owns an 80 acre industrial park with approximately 20 acres remaining for sale. The City's investment in land and infrastructure is approximately Sl/SF. Projects arc reviewed on an individual basis to determine conformity with the development objectives. If the City supports the project, the property is conveyed for a total cost of $1. · Farmington -- The City owns a 40 acre industrial park with plans to expand in the future. The development cost to the City is $1.10/SF. Projects are reviewed on a case by case basis. The City sells the property for $lISF and then uses TIF revenues to reimburse the land sale proceeds and a portion of the developers cost for site improvements including e;J;;cavation, grading and parking. · Rosemount -- The City owns an 80 acre park that was developed at a cost of S1.55/SF; the cost includes land, utilities and park dedication fees. Projects are reviewed on a case by case basis. Two transactions have occurred thus far. The first sale was a 10 acre parcel that was conveyed for a total of $1. A second transaction involved a 6 acre parcel (2.3 acres developable) that was conveyed for $.44/SF. Based upon a review of this information, I believe that the present policies of conveying property for $1/SF and providing pay-as-you-go rebate are both competitive and aggressive. Business Finance and Economic Development Specialists CORPORATE Ofl'lCr;s; P.O. Box 32609 Mpls.. MN 5543Z.06Q9 Phone: (612) 755-5393 Fox: (612) 755-7741 P.O. Box 3027 Monkcto. MN 50002.30?7 Phone: (S07) 387-7117 Fox: (S07) 387-6115 TOTRL P.02