HomeMy WebLinkAbout_08 14 2023 EDA Agenda Packet
Phone 952.447.9800 / www.priorlakemn.gov
4646 Dakota Street SE
Prior Lake, MN 55372
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA)
AGENDA
Monday, August 14, 2023 – 4:00 p.m.
Parkview Community Room
Reports included with this agenda can be found on the City of Prior Lake website at www.cityofpriorlake.com
Please follow this file path: Agendas & Minutes / Economic Development Authority / 2023 / August 14, 2023
1. CALL TO ORDER
2. APPROVAL OF AGENDA
3. APPROVAL OF MEETING MINUTES
A. June 12, 2023
4. CONSENT AGENDA
A. Monthly Development Update (7/31/2023)
B. Appoint ACC Member
5. REMOVED CONSENT AGENDA ITEMS
6. PRESENTATIONS
A. None
7. OLD BUSINESS
A. None
8. NEW BUSINESS
A. Proposed 2024 EDA Tax Levy and Budget Review
9. OTHER BUSINESS
A. Staff Updates
i. Cannabis Legalization
ii. Prior Lake Community Artist
iii. Orderly Annexation Meeting
iv. Next Meeting September 11, 2023
B. Commissioner Comments
10. ADJOURNMENT
Phone 952.447.9800 / priorlakemn.gov
4646 Dakota Street SE
Prior Lake, MN 55372
Economic Development Authority Meeting Minutes
Monday, June 12, 2023
1. CALL TO ORDER
Vice Chair Boucher-Hoese called the meeting to order at 4:00 p.m. In attendance were Boucher-Hoese, Braid, Briggs,
and Marco. Absent was Prchal. Also present were City Attorney David Kendall, CEC Liaison Speiker, Executive Director
Wedel, staff Liaison McCabe, and Administrative Assistant Jess Erickson.
2. APPROVAL OF AGENDA
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE AGENDA.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
3. APPROVAL OF MEETING MINUTES
MOTION BY MARCO, SECONDED BY BRIGGS APPROVE THE MARCH 13, 2023, MEETING MINUTES.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
4. CONSENT AGENDA
A. Monthly Development Update (5/31/2023)
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE CONSENT AGENDA.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
5. REMOVED CONSENT AGENDA ITEMS
None
6. PRESENTATIONS
None
7. PUBLIC HEARINGS
A. Consider Resolution Authorizing the EDA President and Executive Director to Enter into a Contract for Private De-
velopment with Prior Lake B Squared Ventures, LLC for the Sale of EDA-Owned Property at 4662 and 4664 Dakota
Street SE, and a Resolution Authorizing the EDA President and Executive Director to Execute the documents nec-
essary to transfer the western 5 feet of Lot 2, Block 1, City Hall Plaza to the City of Prior Lake
Director McCabe: Introduced the Public Hearing for a resolution authorizing the EDA President and Executive Direc-
tor to enter into a Contract for Private Development with Prior Lake B Squared Ventures, LLC for the sale of EDA-
Owned Property at 4662 and 4664 Dakota Street SE, and a Resolution Authorizing the EDA President and Executive
Director to Execute the documents necessary to transfer the western 5 feet of Lot 2, Block 1, City Hall Plaza to the
City of Prior Lake. McCabe noted the EDA is required to hold a public hearing for land sales per MN State Statue
469.105 prior to any sale of EDA-owned property.
McCabe provided an overview of the Contract for Private Development and the request to transfer 5 ft. of EDA-owned
property to the City of Prior Lake. McCabe stated city staff had a title commitment completed when the City Council
was considering the transfer of this property to the EDA in 2020. The 2020 commitment showed the width of the three
parcels fronting Dakota Street totaled 145 ft. The final plat of City Hall Plaza was approved in 2022. During the platting
work, a second title commitment was competed that showed the three parcels fronting on Dakota Street totaled 150
ft. To correct this issue, city staff is proposing to prepare an administrative land subdivision to split off the western 5
ft. of Lot 2, Block 1, City Hall Plaza, and deed that 5 feet of land to the City of Prior Lake.
Commission Comments/Questions:
None
Applicant:
Bill Beard, The Beard Group and Prior Lake B Squared Ventures, LLC: Provided an update to the EDA that they just
finished design development and are in the final stage of construction documents and will be bringing plans to the
marketplace for pricing. They are working with banks and seeing a softening with construction cost pricing and the
supply chain.
MOTION BY BRIGGS, SECONDED BY BRAID TO OPEN THE PUBLIC HEARING ON ITEM 7A AT 4:17 P.M.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
Public Comment:
None
MOTION BY BRIGGS, SECONDED BY MARCO TO CLOSE THE PUBLIC HEARING ON ITEM 7A AT 4:18 P.M.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
Commission Comments/Questions:
Marco: commented on the development being a wonderful addition to the community and will add vibrancy to the
downtown.
Boucher-Hoese: Project is much needed and will add wonderful development and vibrancy to our town.
MOTION BY BRAID , SECONDED BY MARCO TO APPROVE A RESOLUTION AUTHORIZING THE EDA PRESI-
DENT AND EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT FOR PRIVATE DEVELOPMENT WITH
PRIOR LAKE B SQUARED VENTURES, LLC FOR THE SALE OF EDA-OWNED PROPERTY AT 4662 AND 4664
DAKOTA STREET SE AND APPROVE A RESOLUTION AUTHORIZING THE EDA PRESIDENT AND EXECUTIVE
DIRECTOR TO EXECUTE THE DOCUMENTS NECESSARY TO TRANSFER THE WESTERN 5 FT. OF LOT 2,
BLOCK 1, CITY HALL PLAZA TO THE CITY OF PRIOR LAKE.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
8. OLD BUSINESS
A. None
9. NEW BUSINESS
A. Arts and Culture Committee Bylaw Amendment
Director McCabe: introduced the item to consider amendments to the Arts and Culture Committee (ACC) Bylaws.
Committee members are eligible to serve up to three, three-year terms. As has been the experience with other city
committees, incumbents who apply for subsequent terms are generally selected for reappointment. City staff is pro-
posing amendments to the ACC Bylaws that would provide the Committee member appointed by the EDA and Com-
mittee Chair, or Committee Vice-Chair in the event the Chair position has reached the end of a term, the ability to put
forward an incumbent for reappointment by the EDA prior to the advertisement of vacancies. The intention of the
proposed amendment is to make the appointment process more efficient, transparent, and to retain strong incum-
bents. The proposed bylaw amendments would align the ACC appointment process with other city committees and
commissions who have recently made similar amendments to their bylaws.
MOTION BY BRIGGS, SECONDED BY BRAID APPROVING A RESOLUTION AMENDING THE ATS AND CUL-
TURE COMMITTEE BYLAWS.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
10. OTHER BUSINESS
A. Staff Updates
i. EDA Bylaw Amendments Approved
McCabe: informed commissioners the amendments to the EDA Bylaws which were recommended by the
EDA at their last meeting were approved by the City Council.
ii. Next Meeting July 10, 2023
McCabe reminded commissioners the next EDA meeting will be on July 10, 2023.
B. Commissioner Comments
Braid commented on the work done by the Arts and Culture Committee to have the downtown sidewalk quotes
installed recently and mentioned the downtown military banners are getting positive feedback from the community.
Mr. Braid stated the Public Works and Arts and Culture Committee worked together on a paint the plow event at the
Public Works Somethin’ Bout a Truck event, which had over 600 people attend. Mr. Braid complimented the Arts and
Culture Committee on their great work and outreach.
ADJOURNMENT
MOTION BY BRAID, SECONDED BY MARCO TO ADJOURN THE MEETING.
Ayes by Braid, Marco, Briggs and Boucher-Hoese. The motion carried 4-0.
The meeting adjourned at 4:24pm.
Submitted by Jess Erickson
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: August 14, 2023
AGENDA #: 4A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM:
Development Update
DISCUSSION:
Introduction
The purpose of this agenda item is to review the year to date residential and
commercial development update as of July 31, 2023.
History
EDA Commissioners requested an update of residential and commercial activity
at each meeting.
Conclusion
The attached memorandum provides a summary of the residential and commer-
cial development in the City of Prior Lake as of July 31, 2023.
ALTERNATIVES:
RECOMMENDED
MOTION
ATTACHMENT:
1. Motion and a second, under the consent agenda, to accept the development
update.
2. Remove this item from the consent agenda for additional discussion.
Alternative No. 1
1. Development Update
Phone 952.447.9800 / www.priorlakemn.gov
Memo
Date: August 14, 2023
To: City of Prior Lake Economic Development Authority
From: Casey McCabe, Community Development Director
Subject: Residential & Commercial Activity Update
Below is an update of the year to date residential and commercial development in the City of Prior Lake as of July 31, 2023.
Single Family Dwellings 48 $20,624,001.00 65 $28,229,359.50
Townhouses (# units)0 $0.00 0 $0.00
Multiple Units 0 $0.00 0 $0.00
New
Commercial Industrial & Commercial 2 $5,194,460.00 0 $0.00
Residential 606 $10,293,505.59 660 $10,756,440.97
Industrial & Commercial 14 $1,075,739.00 14 $818,732.59
tMechanical 339 $0.00 495 $0.00
ttMechanical (SF & TH)192 $0.00 260 $0.00
TOTALS 1201 $37,187,705.59 1494 $39,804,533.06 -6.57%
#DIV/0!
-4.30%
31.39%
n/a
n/a
2023 Year to Date 2022 Year to Date
New
Residential
-31.52%
-26.15%
Number of Permits
% Increase / Decrease
Increase/Decrease
Declared Value
% Increase / Decrease
-26.94%
100.00%
#DIV/0!
t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees.
tt Mechanical (SF & TH) permits include required plumbing, heating, sewer and water and fireplace permits for new single family residences They are flat-rate permit fees
Additions and
Alterations
Number of
Permits Declared Value
-26.15%
100.00%
#DIV/0!
#DIV/0!
-8.18%
0.00%
Number of
Permits Declared Value
-19.61%
Name Address Type
(New/Relocation/Expansion)
Previous
Tenant/Owner New SF Status
Park Place Storage Phase I 6010 170th Street New Business Vacant / SF Home 84,870 Issued
Caribou Cabin 4100 Village Lake Drive SE New Business Vacant 605 Issued
Scooter's Coffee 15825 Franklin Trail SE New Business Vacant 668 Issued
Fountain Hills Warehouse 4300 Fountain Hills Drive NE New Business Vacant 7,220 In Review
Jeffers Lodge 3884 Fountain Hills Drive NE New Business Vacant 7,500 In Review
TOTAL 100,863
2023 Prior Lake Commercial Activity (New Construction)
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: August 14, 2023
AGENDA #: 4B
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM:
Appoint ACC Member
DISCUSSION:
Introduction
The purpose of this agenda item is to approve a resolution reappointing Cas-
sandra Bryant to the Arts and Culture Committee (ACC).
Background
ACC member Cassandra Bryant was appointed to the Committee on November
1, 2021 and has served a two-year term which will expire on October 31, 2023.
Members of the ACC serve three year overlapping terms and are term limited to
three terms, or nine years. Initial terms for the ACC were approved by the EDA
on October 11, 2021 and included staggered one-, two-, and three-year terms.
Ms. Bryant was serving an initial two-year term.
Current Circumstances
The ACC Bylaws state, if a Committee member reaches the end of a term and
is eligible for reappointment, the Committee member appointed by the EDA and
the Committee Chair shall determine if eligible incumbents shall be put forward
for reappointment or if the vacancy shall be opened for public application.
Ms. Bryant has indicated interest in serving a second term on the ACC and the
member appointed by the EDA and the ACC Chair have determined she should
be put forward for reappointment.
Conclusion
The ACC member appointed by the EDA and the Committee Chair, as well as
the staff liaison to the committee, are recommending the reappointment of Ms.
Bryant.
The ACC has two members reaching the end of their term on October 31, 2023;
one of which has elected not to seek reappointment. City staff will follow the
process outlined in the ACC Bylaws to fill the remaining vacancy.
ALTERNATIVES:
RECOMMENDED
MOTION
1. Motion and second, as part of the consent agenda, approving a resolution
appointing Cassandra Bryan to serve on the Arts and Culture Committee.
2. Remove this item from the Consent Agenda for additional discussion.
Alternative No. 1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 23-06 EDA
A RESOLUTION APPOINTING CASSANDRA BRYANT TO THE
ARTS AND CULTURE COMMITTEE
Motion By: Second By:
WHEREAS, As of October 31, 2023 the current term of the City of Prior Lake Arts and Culture
Committee (ACC) member Cassandra Bryant will expire; and
WHEREAS, Ms. Bryant has served a two-year term on the ACC and is eligible for reappointment
to a second three-year term; and
WHEREAS, The ACC Bylaws state, if a Committee member reaches the end of a term and is
eligible for reappointment, the Committee member appointed by the EDA and the
Committee Chair shall determine if eligible incumbents shall be put forward for
reappointment or if the vacancy shall be opened for public application; and
WHEREAS, Ms. Bryant has indicated interest to serve a second three-year term on the ACC; and
WHEREAS, The ACC member appointed by the EDA and the Committee Chair have determined
Ms. Bryant should be put forward for reappointment.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF PRIOR LAKE, MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The following individual is appointed to fill the following term:
Appointee Date Appointed Appointment Ends Term Limit
Cassandra Bryant November 1, 2023 October 31, 2026 October 31, 2030
PASSED AND ADOPTED THIS 14th DAY OF AUGUST 2023.
VOTE Prchal Braid Briggs Boucher-
Hoese
Marco
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, Executive Director
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: August 14, 2023
AGENDA #: 8A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: Proposed 2024 EDA Tax Levy and Budget Review
DISCUSSION: Introduction
The purpose of this agenda item is to review and discuss the proposed 2024 Prior
Lake Economic Development Authority (EDA) tax levy and budget and provide
direction to staff related to any proposed revisions.
History
The EDA annually reviews and requests City Council approval of the EDA tax levy
and budget. The EDA cannot levy a tax without city council approval, as Article
10.2 of the EDA Bylaws requires city council approval of the EDA annual budget.
Current Circumstances
City staff has proposed a draft 2024 budget for EDA review, which is summarized
as follows:
➢ The budget includes estimated revenues of $418,288 and estimated ex-
penditures of $647,497.
➢ Estimated revenues include an EDA tax levy of $390,000, interest earnings
of $3,700 and facility rentals of $24,588, based on anticipated rental reve-
nues from the 16298 Main Avenue SE property.
➢ The EDA tax levy is proposed to increase $20,000 over 2023.
➢ The budget includes a planned use of EDA fund balance of $229,209.
➢ The budget includes 50% personnel support for one staff member and 25%
personnel support for two staff members.
➢ The budget includes a planned expenditure of $385,000 for property ac-
quisition; a specific property(ies) has not been identified.
➢ As in recent years, the proposed 2024 budget includes a $75,000 expendi-
ture in the Professional Services – General line item should the EDA wish
to conduct or participate in any economic development related studies.
➢ The budget includes a $19,000 expenditure in the Miscellaneous Expense
line item. This funding includes property tax payments and maintenance
for four EDA owned parcels; 4662 & 4664 Dakota Street SE, 16298 Main
Avenue SE, and 4528 Colorado Street SE.
Minnesota Statutes 469.107 provides authority to levy taxes for an Economic De-
velopment Authority. A city may, at the request of the authority, levy a tax in any
year for the benefit of the authority. The tax must be not more than 0.01813 per-
cent of estimated market value. Based on 2024 preliminary valuation data, Prior
Lake is anticipating a total estimated market value of $6,254,813,300 which would
allow for a maximum EDA tax levy of $1,133,998. City staff is proposing an EDA
tax levy of $390,000.
2
ISSUES: The EDA should provide direction to staff if they would like to see any revisions to
the proposed 2024 budget and tax levy. Following direction from the EDA, staff
will prepare a resolution for EDA consideration at their September 11, 2023 meet-
ing requesting City Council approval of the proposed 2024 Prior Lake EDA tax
levy and budget. The recommended 2024 EDA budget and tax levy will be pre-
sented to the City Council as they consider adoption of the preliminary 2024
budget and tax levy at their September 18, 2023 meeting.
FINANCIAL
IMPACT:
Staff is estimating the EDA 2023 year-ending fund balance will be $1,524,000;
however, $1,065,000 of this balance is restricted as it represents assets held for
resale. The estimated EDA 2023 year-ending cash balance is $459,000. The pro-
posed budget estimates a 2024 year-ending fund balance of $1,294,791 with
$1,065,000 represented by assets held for resale. Should the EDA move forward
with the sale of the 4662 and 4664 Dakota Street properties as anticipated, the
fund balance represented by assets held for resale will decrease and the available
cash balance will increase.
ALTERNATIVES: 1. Provide direction to staff and continue discussion at a future meeting.
RECOMMENDED
MOTION:
Alternative #1.
ATTACHMENT: 1. Proposed 2024 EDA Budget
08/09/2023
Economic Development Authority
2020 2021 2022 2023 2024 CHANGE
AMENDED AMENDED AMENDED AMENDED PROPOSED 2023 to
GL NUMBER DESCRIPTION BUDGET BUDGET BUDGET BUDGET BUDGET 2024
Dept. 46500.00 - ECONOMIC DEVELOPMENT
Revenue
240-00000.00-31010.00 Current Property Taxes - General Purpose 274,750 349,750 360,000 370,000 390,000 20,000
240-46500.00-33610.14 County-City Aids/Grants - Operating EDA
240-46500.00-34760.02 Facility Rental - EDA 24,360 24,588 24,588 0
240-46500.00-36220.14 Prof Service Fee Deposit - EDA
240-00000.00-36210.00 Interest Earnings 7,560 5,300 5,400 2,600 3,700 1,100
240-00000.00-39203.00 Transfer from Other Funds 161,250
Total Revenue 443,560 355,050 389,760 397,188 418,288 21,100
Expenditures
240-46500.00-51100.01 Wages - Full Time 103,534 106,202 112,027 114,525 121,860 7,335
240-46500.00-51100.05 Wages - Commissioners 3,000 3,000 3,000 3,000 3,000 0
240-46500.00-51110.01 Overtime - Full Time
240-46500.00-51208.01 Sick Leave - Buy Down 0 0 0 0 1,421 1,421
240-46500.00-51301.00 Accrued Comp Time
240-46500.00-51400.00 Compensated Absences 621 637 728 744 792 48
240-46500.00-51450.00 Social Security Contributions 6,606 6,771 7,132 7,287 7,829 542
240-46500.00-51451.00 Medicare Contributions 1,545 1,583 1,668 1,704 1,831 127
240-46500.00-51460.00 PERA Contributions 7,825 8,025 8,462 8,649 9,199 550
240-46500.00-51470.00 Health Insurance 8,232 7,850 8,455 10,643 13,638 2,995
240-46500.00-51472.00 Retiree HCSP Contributions 240 240 240 300 300 0
240-46500.00-51473.00 Dental Insurance 540 540 540 540 701 161
240-46500.00-51474.00 Life Insurance 68 68 68 68 68 0
240-46500.00-51477.00 Workers Compensation Insurance 582 628 737 655 858 203
240-46500.00-52010.00 Office Supplies
240-46500.00-53020.00 Legal Services 2,000 2,000 1,000 1,000 1,000 0
240-46500.00-53100.80 Professional Services - General 311,492 380,000 78,300 75,000 75,000 0
240-46500.00-53210.00 Telecommunications 250 250
240-46500.00-53310.10 Training and Employee Development 500 500 500 500 500 0
240-46500.00-53510.00 Required Notice Publication
240-46500.00-53510.01 Maint Agreements Misc Bldg & Structures 5,000 5,000 5,000 0
240-46500.00-54310.00 Memberships and Subscriptions 500 500 500 500 500 0
240-46500.00-54320.00 Miscellaneous Expense 500 500 10,500 12,500 19,000 6,500
240-46500.00-55040.00 Projects - Property & ROW Acquisit'n 385,000 385,000 385,000 0
240-46500.00-55050.00 Projects - Professional Services
Total Expenditures 448,035 519,294 623,857 627,615 647,497 19,882