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HomeMy WebLinkAboutAgenda & Minutes ---- ~ \ \ / . ~ - PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Monday, November 3,1997 5:30 p.m. Fire Station City Council Chambers "(tt.... ?> ~B 1)1-( v' 8. NewBusiness ~D1.Nl'1,~4;}#"ikl-~ Discuss appropriate use ofTax In'f~~anCing~~~ w.fI. "fir ""'~. It/ ,., ~ .(. "-/&1];11.. ,... ~ Review Horkey land purchase proposal. ... -1J1i- 'DVl c) Discuss proposed Wallis option on 4 acre business park parcel. _ ~~ 0 ~~ I _ ~ # - i) . o.Pt~I~~)-!~.l '.. 4F 9. Other Business ~ 10. Announcements or Correspondence 1. Call to Order 2. Pledge of Allegiance 3. Approval of Minutes 4. Consent Agenda 5. Presentations 6. Public Hearings 7. Old Business P!>I ~k - Af~eGi ~ ~J;~~. NfIIi-';,' ,/ J ~ t 1- 1: t,~pv- · ,/1" , t/ltl .. T/f r,~ ?ol~ ~ ~cJlI ~ Db - s~ "p~-(. 11. Adjournment, 7:30 p.m. ... '.._......c..__............................._._.__.-.;......:..._-.:......;...;.----'-_-'<- 16200 Eagle Creek Ave S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 ."i" EQCi\L OPPORTLNITY E"IPLOYER "'INNESO~~ MINUTES OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY OCTOBER 20, 1997 6:00 P.M. 1) CALL TO ORDER: President Barsness called the meeting to order. Present were: President Barsness, Executive Director Boyles, Treasurer Underferth, and Commissioners Kedrowski and Schenck. 2) PLEDGE OF ALLEGIANCE: · President Barsness welcomed everyone to the meeting. 3) APPROVAL OF MINUTES: · The minutes were approved by general consent with one change by Schenck: The EDA appointment to the steering committee should be Dick Underferth rather than Pete Schenck. 4) CONSENT AGENDA: . There was no consent agenda. 5) PRESENTATIONS: . Bill Jaffa, Scott County HRA, and Gene White, HRA Representative · Executive Director Boyles introduced Bill Jaffa of the Scott County Housing and Redeveloping Authority and Gene White, Housing and Redevelopment Representative for Prior Lake. . Bill Jaffa thanked the EDA for inviting him and Commissioner White. He has been Executive Director of the Scott County HRA for 13 years. The Scott County lIRA has been in business for over 20 years. He said within Prior Lake, they serve over 100 households, with about 1/2 million in subsidies. They met a benchmark in the Livable Communities Act. The City of Prior Lake is ahead because their Planning Commission and Council already acted on and approved the Livable Communities Act. He passed out some information. . Mr. Jaffa said in terms of downtown revitalization, the Shakopee River City Center Project is having a groundbreaking. The center was ajoint partnership between the Shakopee EDA, the City Council, and the Scott County Housing Authority. He said they used a unique way to finance a project ofthis type. As the federal government cuts back, they have had to rely on local initiatives. This multi-bond initiative received an A2 rating 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER from Moody's. They went for bond enhancement insurance, to receive a AAA. The retail space is all leased. They will look for a management company. There is 52 units of rental housing for seniors. One of the issues they had to resolve was a Joint Powers agreement with the HRA. The EDA and HRA each paid half for a retail study. The analysis found that 30,000 square of retail space could be absorbed. Retail is on the first floor and the second story is residential. Making the building blend with historical buildings of downtown cost a lot. The project will be completed in September of 1998. They met with a grant-writing fIrm. They feel they can obtain a development grant which could be up to $1.5 million. · Mr. Jaffa said when the project began, there were people in the City that had unrealistic expectations of what the site could support. The joint powers agreement and retail study led to other things. Scott County did the funding on the justice center by issuing Jail Bonds. The Scott County HRA also has a Joint Powers agreement with the City of Savage EDA. They are building a juvenile alternatives facility. It should be completed in September. The work force center central facility ties in with Scott Family Net. They are trying to fmd out how Human Services, School District, CAP agency, and HRA, would fit in. One of the concerns was the type of financing and who would do it. It will be Tax Exempt Revenue Bonds and other Revenue Bonds. There is also a 5013C Tax exempt revenue bond, and Limited Issuance bond revenue. · Gene White of the Scott County HRA addressed the EDA. He said HRA has gone into a lot of different activities. They operate under federal law. Federal Policy as it goes toward redevelopment is part of the activity. There is some innovative financing to do projects that did not appear policy. He said this could be a possible anchor to the Prior Lake downtown project. He said the Scott County Board could work with the Prior Lake EDA. · Mr. Jaffa said now they need to look at where the HRA can fit in with the EDA. He said he would encourage the EDA to enter into a Joint Powers with the Housing and Redevelopment Authority so they can look at what the needs are. He said the timing and the economy is right. · Commissioner Kedrowski said is it the intent of the EDA to look at what the relationship of what the Prior Lake EDA should be to the Scott County HRA? · President Barsness said first they should get copies ofthe current Joint Powers Agreement (JP A) with Savage and Shakopee. · President Barsness asked why wouldn't they establish a JP A with the HRA? 2 . Treasurer Underferth said if they formed a JP A that never became operable what is the down side other than legal costs? . City Attorney Pace stated that the Prior Lake EDA has the power to act as an lIRA ifit wishes. . Mr. Jaffa said it would be written to set out those parameters. The cost of putting it into place is a necessary tool. They would get involved in RFP's and sharing in costs, they know what can be done in those areas. . Treasurer Underferth said it seems we are talking about maximizing dollars. . Mr. White said this is just a step in the process. This cooperation between governmental units is new. We have only done it in other cities because they had projects ready to go. Getting this done ahead of time brings more resources into the planning. The only down side is local pride, when cities want to do it themselves. At this point with a Joint Powers Agreement, it is not putting anyone at risk for anything. . Executive Director Boyles said with the downtown steering committee, they could have the Scott County HRA come in and share the information to get more comfortable. . Mr. White said they are always looking for financing methods. . Mr. Jaffa said this is a good start. This is a continuation of dialogue. He said he will give the agreements to Executive Director Boyles. He said if they could have something within the next 60 to 90 days that would be good. He talked about the Shakopee project design committee. He said the HRA doesn't care if they are part of the ownership of the project. · President Barsness said he would ask City Attorney Pace to review the Joint Powers Agreement and get back to the EDA. He asked how the HRA was funded. . Mr. Jaffa said the five year appointments were part ofMN Statutes 469. Each City in the County has an appointment. Marge Henderson has been chair of commissioners. It has Special Benefits tax power. They levy a tax throughout Scott County. Its use is restricted to the area it is funding. The HRA can do it for other communities. Many of the counties do it this way. They also have projects that are funded through federal government. There is section 8 in thirty sites. There are 44 elderly sites, one fourplex and three transitional housing. Half is contract housing assistance. They make sure it meets the criteria. 3 · Commissioner Kedrowski asked can the City become its own HRA and is there any cost benefit? · City Attorney Pace said the EDA has the powers of the HRA. As to cost benefit, that is something Roger Guenette and she would have to go over. · Mr. Jaffa said that EDAs are more suited to cities. There are five elected and five appointed Scott County Commissioners. · Commissioner Schenck said this is what the Steering Committee talked about earlier, it makes sense to tie it in. 6) PUBLIC HEARINGS: · There were no public hearings. 7) OLD BUSINESS: · There was no old business. 8) NEW BUSINESS: A) Roger Guenette-Possible Option For 4 Acre Business Park · Consultant Roger Guenette said there was a request on the part of Mondo Management, Jeff Wallis with Stan Anderson and AMCON seeking to enter an option on the 4+ acre parcel south of Cottonwood Drive and East of NBC products and Keyland Homes. As previously indicated by Mr. Anderson, he elected not to take the option. Jeff Wallis is seeking an option on the property. The terms are the same, a $10,000 down payment. They would initiate a 25,000 square foot building by the end of '98 and be completed at the end of '99. If they fail to initiate that by end of '98 they would pay a $40,000 penalty and their option would be terminated. They want it executed at the November meeting. If the property is to be reconfigured it will be $20-30,000 for that work. The intention of Wallis and AMCON is the maximum density on that site. It is similar to the business center on CSAH 21. If the EDA is interested in pursuing the option, they will work with Wallis and AMCON. · City Attorney Pace asked if Wallis is proposing to purchase the option? Does the EDA get to keep the cost of purchasing the option of$IO,OOO? Is it $10,000 for the option, and $40,000 if they fail to act? The representation was that every year they don't develop the property they are losing money. 4 . City Manager Boyles asked what about development of the next building on the property as it is likely that the 4 acre parcel could have 70,000 square feet in building. . Consultant Guenette said 25,000 square feet is the minimum they would put in. They don't want to over-build. The 25,000 square feet will be built, then they will see what they lease, then maybe 25,000 square feet after. They would like to do a full build-out. . City Attorney Pace asked what four acres could support. . Consultant Guenette said four plus acres probably could support 70,000 square feet. He said he would need to work with engineering to get the exact dimension. . President Barsness said he was not sure. He said he would be happy to set up a special meeting. · Consultant Guenette said they need to work toward a formal agreement for the EDA to consider. . Commissioner Schenck asked about the process. . Consultant Guenette said he is seeking EDA authorization to prepare a formal option agreement. · Commissioner Kedrowski asked what is the construction timeline? . Consultant Guenette said they will not construct until next spring, and they want the winter to plan the project. . Commissioner Kedrowski asked is some direction necessary before they meet next time? · Consultant Guenette said the EDA needs to tell him when it will be in a position to make a decision. · President Barsness said they should review the status of Tax Increment to support future projects.. · Executive Director Boyles said staff can call EDA commissioners to set a special meeting to consider this option, the issue of TIP usage and a possible land purchase by Horkey. 5 · Consultant Guenette said it is his preference to get back to Wallis before the end of November. MOTION BY SCHENCK SECOND BY BARSNESS TO ADJOURN THE MEETING. Upon a vote, ayes by Barsness, Kedrowski, Schenck, and Underferth. the meeting adjourned. . The meetin djo /0vCJtiv(, (jr! t/ /l ~ Recording Secretary 6