HomeMy WebLinkAbout01 13 2025 EDA Agenda Packet
Phone 952.447.9800 / www.priorlakemn.gov
4646 Dakota Street SE
Prior Lake, MN 55372
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
AGENDA
Monday, January 13, 2025 – 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 / 2025 / January 13, 2025
1. CALL TO ORDER
2. ELECTION OF OFFICERS
3. APPROVAL OF AGENDA
4. APPROVAL OF MEETING MINUTES
A. December 9, 2024
5. CONSENT AGENDA
A. Year-End Development Update (12/31/2024)
B. Year-End EDA Revenue & Expenditure Report (12/31/2024)
6. REMOVED CONSENT AGENDA ITEMS
7. PRESENTATIONS
A. None
8. OLD BUSINESS
A. Downtown Redevelopment Assistance – Chula’s
9. NEW BUSINESS
A. None
10. OTHER BUSINESS
A. Staff Updates
i. Orderly Annexation Area AUAR – EDA Professional Services Funding
ii. Cora Project Update with The Beard Group at February Meeting
B. Commissioner Comments
11. ADJOURNMENT
PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
MEETING MINUTES
Monday, December 9, 2024 – 4:00 p.m.
Parkview Conference Room
1. CALL TO ORDER
Chair Prchal called the meeting to order at 4:00 p.m. In attendance were Prchal, Marco, Braid and
Briggs. Absent Boucher-Hoese. Also present were Executive Director Wedel, staff Liaison McCabe,
Deputy City Clerk / Administrative Assistant Kooiman, CEC Liaison Speiker, and Dan Stanley with
Black Hills Properties, LLC.
2. APPROVAL OF AGENDA
Motion by Briggs and second by Braid to move item 7.A. (Downtown Redevelopment Assistance)
to item 4.A.
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE AGENDA SUBJECT TO
MOVING AGENDA ITEM 7A to 4A.
Ayes by Prchal, Briggs, Braid and Marco. The motion carried 4-0.
3. APPROVAL OF MEETING MINUTES
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE OCTOBER 14, 2024,
MEETING MINUTES.
Ayes by Prchal, Briggs and Marco. Braid Abstained. The motion carried 3-0-1.
4. PRESENTATIONS
A. Downtown Redevelopment Assistance
McCabe: Introduced the request to consider EDA financial assistance to assist with the
redevelopment of a downtown property at 4636 Colorado St. SE. McCabe informed the
commission that Black Hills Properties, LLC acquired the former T-Shirts and More building in
December 2023 and the new owners have been working with staff over the past year on plans
to remove the existing structure and construct a two-story restaurant and office/retail building.
McCabe explained staff has been working with the property owner on a potential expansion of
the sidewalk bump out area in front of the new restaurant to provide an outdoor seating option.
The EDA also discussed the existing location and size of utilities serving the property and the
need to relocate and upsize the utilities.
Stanley: Provided additional detail on the work being planned and requested financial assistance
for sidewalk and utility portions of the project. Mr. Stanley reviewed two estimates; $21,058.25
for the sidewalk work and $52,725 for the utility work.
Commissioners: Discussed the request and indicated general support for providing financial
assistance for actual costs of sidewalk and utility work and directed staff to prepare loan
documents for formal consideration at the next meeting.
5. CONSENT AGENDA
A. Monthly Developments update (11/30/2024)
McCabe: Introduced item 5a
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE THE CONSENT AGENDA.
Ayes by Briggs, Braid, Prchal and Marco. The motion carried 4-0.
6. REMOVED CONSENT AGENDA ITEMS
None.
4646 Dakota Street SE
Prior Lake, MN 55372
7. OLD BUSINESS
A. Downtown Redevelopment Assistance
Item moved to 4.A.
8. NEW BUSINESS
A. Arts and Culture Committee Bylaw Amendment
McCabe: Introduced an amendment to the Arts and Culture Committee (ACC) Bylaws that would
increase committee membership from seven to nine members. McCabe stated the ACC recently
conducted interviews to fill a vacant position and several quality applicants applied
Commissioners: Commented on the good work being done by the ACC and having strong
interest from residents in serving on the committee is encouraging.
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE A RESOLUTION AMENDING
THE ARTS AND CULTURE COMMITTEE BYLAWS TO INCREASE THE NUMBER OF
COMMITTEE MEMBERS FROM SEVEN TO NINE.
Ayes by Briggs, Braid, Prchal and Marco. The motion carried 4-0.
B. Appointing Members to Serve on the Arts and Culture Committee
McCabe: Introduced the item to approve a resolution to appoint three new members to the Arts
and Culture Committee (ACC).
MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE A RESOLUTION APPOINTING
CRYSTAL DVORAK, KARIN LOGERQUIST, AND ALLISON OLSON TO SERVE ON THE
ARTS AND CULTURE COMMITTEE.
Ayes by Briggs, Braid, Prchal and Marco. The motion carried 4-0.
9. OTHER BUSINESS
A. Staff Updates
I. OAA AUAR/Infrastructure Study
McCabe and Wedel provided an update on the work staff is doing to move forward an
Alternative Urban Areawide Review and infrastructure study in the orderly annexation area.
II. 2025 Development Project Update
McCabe provided an update on anticipated residential and commercial/industrial development
projects for 2025.
III. 16298 Main Avenue SE Parking Lot Improvements
McCabe informed the EDA that the parking lot improvement approved by the EDA at their
October meeting for the EDA-owned property at 16298 Main Avenue SE has been completed.
IV. Confirm 2025 EDA Meeting Schedule
Commissioners discussed the date and frequency of meetings for 2025 and elected to continue
with the regular meeting schedule of the 2nd Monday of each month at 4:00 p.m.
B. Commissioner Comments
None.
10. ADJOURNMENT
MOTION BY BRAID, SECOND BY BRIGGS TO ADJOURN THE MEETING.
Ayes by Briggs, Braid, Prchal and Marco. The motion carried 4-0.
The meeting adjourned at 5:11 p.m.
Submitted by Megan Kooiman
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: January 13, 2025
AGENDA #: 2
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: Election of Officers
DISCUSSION: Introduction
Article 5.1 of the EDA Bylaws state the officers of the EDA shall be elected at the
first meeting of the year. Officers include President, Vice-President, Treasurer,
Secretary, and Assistant Treasurer.
History
The 2024 elected EDA officers were: Kim Prchal as President; Marie Boucher-
Hoese as Vice-President; Cathy Erickson as Treasurer; Jason Wedel as Secre-
tary; and Casey McCabe as Assistant Treasurer.
Current Circumstances
All EDA Commissioners are eligible to become officers for 2025.
The EDA Bylaws provide that the city’s Finance Director be designated as the
Treasurer, and the bylaws further allow non-commissioners to hold the officer po-
sitions of Secretary and Assistant Treasurer. In previous years, the City Manager
/ EDA Executive Director has been elected Secretary and the Community Devel-
opment Director has been elected Assistant Treasurer.
Conclusion
The 2025 EDA President, Vice-President, Treasurer, Secretary and Assistant
Treasurer should be elected by the EDA Commissioners on January 13th.
FINANCIAL
IMPACT:
None
ALTERNATIVES: 1. Motion(s) and second(s) to elect EDA officers for 2025.
2. Table the election.
RECOMMENDED
MOTION:
Alternative No. 1
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: January 13, 2025
AGENDA #: 5A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM:
Development Update
DISCUSSION:
Introduction
The purpose of this agenda item is to review the year-end residential and com-
mercial development update as of December 31, 2024.
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 December 31, 2024.
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 / Fax 952.447.4245 / www.cityofpriorlake.com
Memo
Date: January 13, 2025
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-end residential and commercial development in the City of Prior Lake as of December 31, 2024.
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
19
9
0
19
9
1
19
9
2
19
9
3
19
9
4
19
9
5
19
9
6
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
Total Building Permit Valuation
Single Family Dwellings 51 $28,258,327.00 68 $30,326,568.00
Townhouses (# units)4 $672,000.00 0 $0.00
Multiple Units 1 $28,733,056.00 1 $1,800,000.00
New
Commercial Industrial & Commercial 5 $9,831,600.00 4 $7,044,460.00
Residential 936 $23,334,694.48 1059 $18,974,816.75
Industrial & Commercial 26 $5,110,446.00 22 $1,343,739.00
tMechanical 996 $0.00 954 $0.00
ttMechanical (SF & TH)220 $0.00 272 $0.00
TOTALS 2,239 $95,940,123.48 2,380 $59,489,583.75 61.27%
39.56%
22.98%
280.32%
n/a
n/a
2024 Year to Date 2023 Year to Date
New
Residential
4.40%
-19.12%
Number of Permits
% Increase / Decrease
Increase/Decrease
Declared Value
% Increase / Decrease
-6.82%
100.00%
1496.28%
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
-25.00%
100.00%
0.00%
25.00%
-11.61%
18.18%
Number of
Permits Declared Value
-5.92%
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
19
9
0
19
9
1
19
9
2
19
9
3
19
9
4
19
9
5
19
9
6
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
Prior Lake Total Commercial Building Permit Valuation
New Commercial Commercial Addition/Alteration
Name Address Type
(New/Relocation/Expansion)
Previous
Tenant/Owner New SF Status
Culver's Restaurant 5471 Credit River Rd. SE New Business Vacant 4,350 Completed
Fountain Hills Warehouse/Office 4300 Fountain Hills Drive NE New Business Vacant 7,200 Issued
Park Place Storage Phase II 6010 170th St. New Business Vacant 91,555 Issued
TOTAL 103,105
2024 Prior Lake Commercial Activity (New Construction Only)
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
19
9
0
19
9
1
19
9
2
19
9
3
19
9
4
19
9
5
19
9
6
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
20
2
4
Prior Lake Total Residential Building Permit Valuation
New Residential Residential Addition/Alteration
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: January 13, 2025
AGENDA #: 5B
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: EDA Revenue & Expenditure Report
DISCUSSION: Introduction
The purpose of this consent agenda item is to review the 2024 year-end EDA Revenue & Expenditure
Report.
Current Circumstances
Total EDA revenues were $429,611 (102.7% of budget). The primary source of revenue was the prop-
erty tax levy ($364,193); additional revenue included $27,867 for rental of EDA-owned property and
$11,402 in interest/investment earnings.
2024 expenditures were $410,057 (63.1% of budget). 2024 EDA expenditures primarily relate to staff
wages and benefits as anticipated and budgeted and the acquisition of a property at 4556 Colorado
St. SE ($250,563).
ISSUES: There will be additional year-end adjustments, including payroll, paid in January that will be posted
back to the period ending December 31, 2024.
ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA Revenue & Expenditure
Report.
2. Remove this item from the consent agenda for additional discussion.
RECOMMENDED
MOTION:
Alternative No. 1
ATTACHMENTS: 1. EDA Revenue & Expenditure Report
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 1/2Page:01/03/2025 09:25 AM
User: cmccabe
DB: Prior Lake PERIOD ENDING 12/31/2024
% BDGT
USED
AVAILABLE
BALANCE
ACTIVITY FOR
MONTH
12/31/2024
YTD BALANCE
12/31/2024
2024
AMENDED BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Revenues
Dept 00000.00 - GENERAL
100.05 (192.57)176,923.72 364,192.57 364,000.00 Current Property Taxes - General Purpos240-00000.00-31010.00
82.63 4,516.67 11,302.23 21,483.33 26,000.00 Fiscal Disparities240-00000.00-31040.00
0.00 0.00 0.00 0.00 0.00 Market Value Credit Aid240-00000.00-33423.00
0.00 0.00 0.00 0.00 0.00 Administrative Charges240-00000.00-34111.00
308.18 (7,702.48)0.00 11,402.48 3,700.00 Interest Earnings240-00000.00-36210.00
100.00 (4,665.09)0.00 4,665.09 0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00
0.00 0.00 0.00 0.00 0.00 Contributions & Donations240-00000.00-36230.00
0.00 0.00 0.00 0.00 0.00 Contribution (Other Fund)240-00000.00-37901.00
0.00 0.00 0.00 0.00 0.00 Transfer from Other Funds240-00000.00-39203.00
102.04 (8,043.47)188,225.95 401,743.47 393,700.00 Total Dept 00000.00 - GENERAL
Dept 46500.00 - ECONOMIC DEVELOPMENT
0.00 0.00 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14
113.34 (3,279.04)2,249.00 27,867.04 24,588.00 Facility Rental - EDA240-46500.00-34760.02
0.00 0.00 0.00 0.00 0.00 Prof Service Fee Deposit - EDA240-46500.00-36220.14
0.00 0.00 0.00 0.00 0.00 Realized Inv Gain/(Loss)240-46500.00-36226.00
113.34 (3,279.04)2,249.00 27,867.04 24,588.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT
Dept 46503.00 - TECH VILLAGE INCUBATOR
0.00 0.00 0.00 0.00 0.00 Facility Rental - EDA240-46503.00-34760.02
0.00 0.00 0.00 0.00 0.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR
102.71 (11,322.51)190,474.95 429,610.51 418,288.00 TOTAL REVENUES
Expenditures
Dept 46500.00 - ECONOMIC DEVELOPMENT
76.78 28,857.38 7,779.55 95,429.62 124,287.00 Wages - Full Time240-46500.00-51100.01
33.33 2,000.00 200.00 1,000.00 3,000.00 Wages - Commissioners240-46500.00-51100.05
0.00 0.00 0.00 0.00 0.00 Overtime - Full Time240-46500.00-51110.01
0.00 1,421.00 0.00 0.00 1,421.00 Sick Leave - Buy Down240-46500.00-51208.01
0.00 0.00 0.00 0.00 0.00 Accrued Comp Time240-46500.00-51301.00
70.87 235.38 46.68 572.62 808.00 Compensated Absences240-46500.00-51400.00
73.96 2,077.70 487.27 5,902.30 7,980.00 Social Security Contributions240-46500.00-51450.00
73.98 485.60 113.98 1,380.40 1,866.00 Medicare Contributions240-46500.00-51451.00
76.30 2,223.71 583.45 7,157.29 9,381.00 PERA Contributions240-46500.00-51460.00
55.38 6,021.19 628.19 7,471.81 13,493.00 Health Insurance240-46500.00-51470.00 78.30 65.11 23.74 234.89 300.00 Retiree HCSP Contributions240-46500.00-51472.00
69.80 138.02 26.86 318.98 457.00 Dental Insurance240-46500.00-51473.00
74.94 17.04 4.28 50.96 68.00 Life Insurance240-46500.00-51474.00
80.97 147.13 0.00 625.87 773.00 Workers Compensation Insurance240-46500.00-51477.00
0.00 0.00 0.00 0.00 0.00 Office Supplies240-46500.00-52010.00
0.00 1,000.00 0.00 0.00 1,000.00 Legal Services240-46500.00-53020.00
13.45 64,914.67 188.82 10,085.33 75,000.00 Professional Services - General240-46500.00-53100.80
0.00 0.00 0.00 0.00 0.00 Telecommunications240-46500.00-53210.00
0.00 500.00 0.00 0.00 500.00 Training and Employee Development240-46500.00-53310.10
0.00 0.00 0.00 0.00 0.00 Required Notice Publication240-46500.00-53510.00
0.00 5,000.00 0.00 0.00 5,000.00 Maint Agreements Misc Bldg & Structures240-46500.00-54010.51
0.00 500.00 0.00 0.00 500.00 Memberships and Subscriptions240-46500.00-54310.00
REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page:01/03/2025 09:25 AM
User: cmccabe
DB: Prior Lake PERIOD ENDING 12/31/2024
% BDGT
USED
AVAILABLE
BALANCE
ACTIVITY FOR
MONTH
12/31/2024
YTD BALANCE
12/31/2024
2024
AMENDED BUDGETDESCRIPTIONGL NUMBER
Fund 240 - EDA SPECIAL REVENUE FUND
Expenditures
104.02 (764.16)0.00 19,764.16 19,000.00 Miscellaneous Expense240-46500.00-54320.00
65.08 134,436.84 0.00 250,563.16 385,000.00 Projects - Property & ROW Acquisit'n240-46500.00-55040.00
100.00 (9,500.00)0.00 9,500.00 0.00 Projects - Professional Services240-46500.00-55050.00
63.10 239,776.61 10,082.82 410,057.39 649,834.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT
Dept 46503.00 - TECH VILLAGE INCUBATOR
0.00 0.00 0.00 0.00 0.00 Office Supplies240-46503.00-52010.00 0.00 0.00 0.00 0.00 0.00 Small Equipment - General240-46503.00-52400.10
0.00 0.00 0.00 0.00 0.00 Legal Services240-46503.00-53020.00
0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60
0.00 0.00 0.00 0.00 0.00 Telecommunications240-46503.00-53210.00
0.00 0.00 0.00 0.00 0.00 Rent Subsidies240-46503.00-54095.00
0.00 0.00 0.00 0.00 0.00 Business Assistance240-46503.00-54100.00
0.00 0.00 0.00 0.00 0.00 Memberships and Subscriptions240-46503.00-54310.00
0.00 0.00 0.00 0.00 0.00 Miscellaneous Expense240-46503.00-54320.00
0.00 0.00 0.00 0.00 0.00 Building & Building Improvements240-46503.00-55520.00
0.00 0.00 0.00 0.00 0.00 Furniture and Office Equipment240-46503.00-55560.00
0.00 0.00 0.00 0.00 0.00 Machinery and Equipment240-46503.00-55570.00
0.00 0.00 0.00 0.00 0.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR
63.10 239,776.61 10,082.82 410,057.39 649,834.00 TOTAL EXPENDITURES
8.44 (251,099.12)180,392.13 19,553.12 (231,546.00)NET OF REVENUES & EXPENDITURES
63.10 239,776.61 10,082.82 410,057.39 649,834.00 TOTAL EXPENDITURES
102.71 (11,322.51)190,474.95 429,610.51 418,288.00 TOTAL REVENUES
Fund 240 - EDA SPECIAL REVENUE FUND:
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: January 13, 2025
AGENDA #: 8A
PREPARED BY: Casey McCabe, Community Development Director
AGENDA ITEM: Downtown Redevelopment Assistance – Chula’s
DISCUSSION:
Introduction
The purpose of this agenda item is to consider approval of a resolution approving a
Business Subsidy Agreement with Black Hills Properties, LLC.
History
City staff have been meeting with Dan Stanley and Manny Perez of Black Hills Prop-
erties, LLC (BHP) over the past year to discuss a proposed downtown redevelop-
ment project. BHP is proposing to demolish an existing commercial building located
at 4636 Colorado Street SE and construct an approximate 9,500 square foot two-
story commercial building on the property, which includes an approximate 4,000
square foot restaurant, to be known as Chula’s, and approximately 2,500 square
feet of leasable office/retail space.
Current Circumstances
In accordance with Minnesota Statute 116J.993 – 116J.995 (Minnesota Business
Subsidy Law), the City Council adopted a Business Subsidy Policy on October 18,
2004, which has been amended multiple times, most recently on August 26, 2013.
The policy establishes guidelines and other criteria regarding the use of business
subsidies, such as tax increment financing, tax abatement, loans and other business
subsidies for private development projects within the City of Prior Lake.
On August 26, 2013 the City also adopted a Local Business Incentives Policy es-
tablishing guidelines and criteria regarding the use of local business incentives that
are not subject to the requirements and limitations set forth by provision of Minn.
Stat. 116J.993-116J.995. BHP is requesting a business subsidy under the City’s
Local Business Incentives Policy to assist with certain redevelopment costs.
Mr. Stanley attended the December 9, 2024 EDA meeting to discuss the project and
highlighted a few areas where the property owners feel public financial participation
may be warranted; namely with the expansion of the public sidewalk/pedestrian
bump-out and relocation of public utilities within the right-of-way. The EDA also dis-
cussed the potential for soil corrections which is not known at this time. The EDA
expressed general support for financial assistance and directed staff to prepare a
report for formal consideration.
Staff has prepared a draft Business Subsidy Agreement which, if approved, would
provide BHP with a forgivable loan in an amount not to exceed $70,000 to assist
with eligible project costs. Eligible project costs include i) demolition of the existing
2
commercial building; ii) soil corrections; iii) sidewalk bump-out expansion and curb
concrete work; and iv) utility connections and relocation.
The loan is secured by a personal guaranty from Mr. Stanley and Mr. Perez and is
deferred for two years with no interest accrued during that time. Funds will not be
disbursed to the developer until the work has been completed, proof of payment is
provided, and lien waivers are received from the contractors.
If the developer meets the project goals, including completion of the project to the
EDA’s satisfaction within one year and operation of a restaurant on the property
within two years, the loan will be forgiven. If the developer fails to meet the project
goals, repayment of the loaned funds may be required at the discretion of the EDA.
The proposed development would achieve several Public Purpose Objectives iden-
tified in the Local Business Subsidy Policy, including:
➢ To enhance and diversify the City’s tax base;
➢ To provide employment opportunities in the City;
➢ To help provide access to services for residents of the City;
➢ To achieve development on a site that may not be developed without business
subsidies assistance;
➢ To remove blight and/or encourage development of a commercial area in the
City that results in higher quality development and private investment; and
➢ To offset increased costs of development of a specific property when the unique
physical characteristics of the site may otherwise preclude private investment.
ISSUES:
Conclusion
Previous community surveys have indicated a desire for more restaurants in Prior
Lake. This project presents an opportunity to take another positive step forward in
that direction. Previous community survey respondents also expressed support for
the city offering financial incentives to accomplish development and redevelopment
objectives.
Although BHP anticipates the creation of new employment opportunities with this
project, the purpose of the business subsidy is for site development costs. For that
reason, the creation and retention of jobs has not been identified as a formal goal
of this business subsidy. Wage and job goals have been set at zero in the Business
Subsidy Agreement, pursuant to Minnesota Statutes 116J.994, Subd. 4.
The Local Business Incentives Policy requires anyone receiving a business incen-
tive between $5,001 and $149,999 to enter into an agreement with the City. The
attached Business Subsidy Agreement conforms with the City’s policy.
FINANCIAL
IMPACT:
The EDA does not have loan funding identified in the 2025 budget. Staff is proposing
the EDA utilize a portion of their 2025 Projects – Property & Right-Of-Way (240-
46500.00-55040.00) budget for this purpose.
ALTERNATIVES: 1. Motion and a second to approve a resolution approving a Business Subsidy
Agreement to assist with costs related to redevelopment of a property located at
4636 Colorado Street SE.
2. Motion and a second to deny the resolution approving the Business Subsidy
Agreement.
3. Motion and a second to table action and provide direction to staff.
3
RECOMMENDED
MOTIONS:
Alternative #1
ATTACHMENTS: 1. Business Subsidy Agreement
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 25-01 EDA
A RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT
TO ASSIST WITH COSTS RELATED TO REDEVELOPMENT OF A PROPERTY
LOCATED AT 4636 COLORADO STREET SE
Motion By: Second By:
WHEREAS, Minn. Stat. §§ 116J.993 – 116J.995 authorize the Prior Lake Economic
Development Authority (EDA) to grant business subsidies, such as tax increment
financing, tax abatement, and other business subsidies for private development
projects, in order to achieve a public purpose; and
WHEREAS, on August 26, 2013 the City of Prior Lake adopted an Amended Business Subsidy
Policy in compliance with Minn. Stat. § 116J.994, Subd. 2; and
WHEREAS,
on August 26, 2013 the City of Prior Lake adopted a Local Business Incentives
Policy establishing guidelines and criteria regarding the use of local business
incentives that are not subject to the requirements and limitations set forth by
provision of Minn. Stat. 116J.993-116J.995; and
WHEREAS,
WHEREAS,
Black Hills Properties, LLC, has requested a business subsidy under the City’s
Local Business Incentives Policy to assist with the redevelopment of property
located at 4636 Colorado Street SE, Prior Lake, MN 55372, legally described as
Lot 11 and the East 28 feet of Lot 12, City of Prior Lake; PID 250010020 (“Project
Site”), and to construct on the Project Site an approximate 9,500 square foot two-
story mixed use commercial building; and
Black Hills Properties, LLC has requested a business subsidy in the form of a
deferred loan to assist with costs related to, i) demolition of the existing
commercial building; ii) soil corrections; iii) sidewalk bump-out expansion and curb
concrete work; and iv) utility connections and relocation; and
WHEREAS,
On January 13, 2024, the EDA a Business Subsidy Agreement was presented to
the EDA setting forth the terms of the proposed business subsidy.
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. Based upon the information presented, the EDA makes the following findings:
a. The Project will achieve several public purpose objectives, including specifically, to
enhance and diversify the City’s tax base, to provide employment opportunities in the City,
to help provide access to services for residents of the City, to achieve development on a
site that may not be redeveloped without business subsidies assistance; to remove blight
and/or encourage development of a commercial area in the City that results in higher
quality development and private investment; and to offset increased costs of development
2
of a specific property when the unique physical characteristics of the site may otherwise
preclude private investment.
b. The Project is consistent with the City 2040 Comprehensive Plan.
c. The Project is consistent with the City of Prior Lake Strategic Plan.
d. The creation and retention of jobs is not a goal of this business subsidy, therefore the
wage and job goals are set to zero pursuant to Minn. Stat. § 116J.994, Subd. 4.
3. Based upon the recitals and the findings both set forth above, the EDA approves the Business
Subsidy Agreement to provide a deferred loan to Black Hills Properteis, LLC as set forth in
the Agreement.
4. The EDA authorizes the use of 2025 Projects – Property & Right-Of-Way funds (240-
46500.00-55040.00) to assist this redevelopment project in an amount not to exceed
$70,000.00.
5. The EDA President and Executive Director are hereby authorized to execute the Business
Subsidy Agreement.
Passed and adopted this 13th day of January, 2025.
VOTE Prchal Braid Marco Briggs Boucher-Hoese
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, Executive Director