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Home My WebLink About07 14 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, July 14, 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 / July 14, 2025 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. June 9, 2025 4. CONSENT AGENDA A. Monthly Development Update (6/30/25) 5. OLD BUSINESS A. Strategic Property Acquisition Update 6. NEW BUSINESS A. Resolution Approving a Request for 2026 EDA Tax Levy and Budget B. EDA-Owned Property Discussion 7. OTHER BUSINESS A. Staff Updates B. Commissioner Comments 8. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Monday, June 9, 2025 – 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, Lake, Marco and Boucher-Hoese. Absent Braid. Also present were Executive Director Wedel, Community Development Director McCabe, and Deputy City Clerk / Administrative Assistant Kooiman. 2. APPROVAL OF AGENDA MOTION BY LAKE, SECONDED BY MARCO TO APPROVE THE AGENDA Ayes by Prchal, Marco, Boucher-Hoese and Lake. That motion carried 4-0. 3. APPROVAL OF MEETING MINUTES MOTION BY LAKE, SECONDED BY PRACHAL TO APPROVE THE APRIL 14, 2025, MEETING MINUTES. Ayes by Prchal, and Lake. That motion carried 2-0-2 with Boucher-Hoese and Marco abstaining. 4. CONSENT AGENDA A. Monthly Development Update (5/31/25) MOTION BY LAKE, SECONDED BY MARCO TO APPROVE THE CONSENT AGENDA. Ayes by Prchal, Marco, Boucher-Hoese and Lake. That motion carried 4-0. 5. OLD BUSINESS None. 6. NEW BUSINESS A. Fast-Track Challenge Sponsorship McCabe: Introduced the agenda item and gave a brief history of previous EDA support for this event, adding the EDA has provided funds to support the event but has requested the funds not be used as a cash prize to winners in previous years. EDA members discussed the amount they are willing to donate and if the donation money should be used in a certain way. Motion by BOUCHER-HOESE and second by MARCO approving a resolution approving a $1,000 sponsorship contribution to be utilized for a marketing contract for the event. B. Prior Lake B Squared Ventures Preliminary Development Agreement Amendment McCabe: Introduce the item to consider an amendment and extension to the preliminary development agreement. McCabe gave the history of the previous amendments between the EDA and Prior Lake B Squared Ventures. He then explained the current circumstances with a new developer being identified to acquire the project in the future, if approved, and construct the 4646 Dakota Street SE Prior Lake, MN 55372 building. Motion by LAKE and a second by BOUCHER-HOESE authorizing the Executive Director to execute the Sixth Amendment to the Preliminary Development Agreement. C. Strategic Property Acquisition Discussion McCabe: Introduced the item and requested direction from the EDA related to any parcels staff should seek to acquire to facilitate future redevelopment projects. EDA Commissioners discussed previous City of Prior Lake and EDA property acquisitions in the downtown area and provided staff with direction on interest in additional targeted acquisitions, should individual properties become available. 7. OTHER BUSINESS A. Staff Updates i. 2026 EDA Budget Direction EDA Commissioners: provided direction to staff as they prepare the 2026 budget request. ii. Chula’s Groundbreaking McCabe: informed the commission that several staff and council members attended the Chula’s Restaurant groundbreaking event. B. Commissioner Comments None 8. ADJOURNMENT MOTION BY MARCO, SECOND BY BOUCHER-HOESE TO ADJOURN THE MEETING. Ayes by Prchal, Marco, Boucher-Hoese and Lake. That motion carried 4-0. The meeting adjourned at 4:44 p.m. Submitted by Megan Kooiman 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 14, 2025 AGENDA #: 4A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Monthly Development Update DISCUSSION: Introduction The purpose of this agenda item is to review the year-to-date residential and commercial development update as of June 30, 2025. 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 June 30, 2025. 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. Monthly Development Update Phone 952.447.9800 / www.priorlakemn.gov Memo Date: July 14, 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 to date residential and commercial development in the City of Prior Lake as of June 30, 2025. Single Family Dwellings 15 $7,901,838.00 33 $15,811,719.00 Townhouses (# units)0 $0.00 4 $672,000.00 Multiple Units 1 $5,500,000.00 1 $28,733,056.00 New Commercial Industrial & Commercial 3 $7,475,098.00 1 $1,500,000.00 Residential 449 $9,152,219.75 504 $12,297,612.87 Industrial & Commercial 19 $2,468,793.00 9 $2,797,228.00 tMechanical 582 $0.00 485 $0.00 ttMechanical (SF & TH)60 $0.00 148 $0.00 TOTALS 1,129 $32,497,948.75 1,185 $61,811,615.87 -47.42% 398.34% -25.58% -11.74% n/a n/a 2025 Year to Date 2024 Year to Date New Residential 20.00% -59.46% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -50.03% -100.00% -80.86% 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 -54.55% -100.00% 0.00% 200.00% -10.91% 111.11% Number of Permits Declared Value -4.73% Name Address Type (New Const. or Add/Alt) Previous Tenant/Owner New C/I Sq. Ft. Status Permit Valuation Chula's Restaurant Building*4636 Colorado St. New Construction T-Shirts & More 6,672 Issued $2,688,732 Valvoline Oil Change 4120 Village Lake Dr. SE New Construction Vacant 2,673 Issued $1,633,866 Park Place Storage Phase III 6010 170th St. E.New Construction Vacant 48,500 Issued $3,152,500 TOTAL 57,845 $7,475,098 2025 Prior Lake Commercial Activity 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: July 14, 2025 AGENDA #: 6A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Resolution Approving a Request for 2026 EDA Tax Levy and Budget DISCUSSION: Introduction The purpose of this agenda item is to consider approval of the attached reso- lution requesting approving the 2026 Prior Lake Economic Development Au- thority (EDA) tax levy and budget. 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 2026 budget for EDA review, which is summa- rized as follows: ➢ The budget includes estimated revenues of $443,088 and estimated expenditures of $650,109. ➢ Estimated revenues include an EDA tax levy of $405,000 (same as in 2025), interest earnings of $11,100 and facility rentals of $26,988, based on anticipated rental revenues from the 16298 Main Avenue SE property. ➢ The budget includes a planned use of EDA fund balance of $207,021. ➢ 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 acquisition; a specific property(ies) has not been identified. ➢ The proposed 2026 budget includes a $75,000 expenditure in the Pro- fessional Services – General; a specific project or study has not been identified. Minnesota Statutes 469.107 provides authority to levy taxes for an Economic Development 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 percent of taxable market value. Based on 2026 preliminary valuation data, Prior Lake is anticipating a total estimated taxable market value of $5,938,215,997 which would allow for a maximum EDA tax levy of $1,076,599. City staff is proposing an EDA tax levy of $405,000. 2 Arts and Culture Committee Funding The EDA established the Arts and Culture Committee (ACC) in 2021. During the first four years, the EDA annually allocated a portion of its Professional Services – General funding to the ACC to help achieve mutually agreed upon strategic priorities. The EDA did not allocate a specific funding amount to the ACC in the 2025 budget. The EDA should provide direction to staff if they desire to allocate a specific funding amount to the ACC in 2026. ISSUES: The recommended 2026 EDA budget and tax levy will be presented to the city council as they consider adoption of the preliminary 2026 budget and tax levy in September. FINANCIAL IMPACT: Should the EDA fully expend their 2025 budget, the estimated EDA 2025 year- ending fund balance will be $1,581,270; however, $1,315,600 of this balance is restricted as it represents assets held for resale, providing an estimated EDA 2025 year-ending cash balance of $265,670. The proposed budget estimates a 2026 year-ending fund balance of $1,374,249 with $1,315,600 represented by assets held for resale. Should the EDA move forward with the sale of the 4662 and 4664 Dakota Street properties, the fund balance represented by assets held for resale will decrease and the available cash balance will increase. ALTERNATIVES: 1. Motion and a second to approve a resolution requesting city council ap- proval of the proposed 2026 EDA tax levy of $405,000 and a total budget of $650,109. 2. Motion and a second to approve a resolution requesting city council ap- proval of alternative 2026 EDA tax levy and budget amounts as determined by the EDA. RECOMMENDED MOTION: Alternative No. 1 ATTACHMENT: 1. Proposed 2026 EDA Budget 7/14/2025 Economic Development Authority 2021 2022 2023 2024 2025 2026 CHANGE AMENDED AMENDED AMENDED AMENDED AMENDED PROPOSED 2025 to GL NUMBER DESCRIPTION BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET 2026 Dept. 46500.00 - ECONOMIC DEVELOPMENT Revenue 240-00000.00-31010.00 Current Property Taxes - General Purpose 349,750 360,000 370,000 390,000 405,000 405,000 0 240-46500.00-33610.14 County-City Aids/Grants - Operating EDA 0 240-46500.00-34760.02 Facility Rental - EDA 24,360 24,588 24,588 24,588 26,988 2,400 240-46500.00-36220.14 Prof Service Fee Deposit - EDA 0 240-00000.00-36210.00 Interest Earnings 5,300 5,400 2,600 3,700 9,800 11,100 1,300 240-00000.00-39203.00 Transfer from Other Funds 0 Total Revenue 355,050 389,760 397,188 418,288 439,388 443,088 3,700 Expenditures 240-46500.00-51100.01 Wages - Full Time 106,202 112,027 114,525 124,287 128,154 133,348 5,194 240-46500.00-51100.05 Wages - Commissioners 3,000 3,000 3,000 3,000 3,000 2,250 (750) 240-46500.00-51110.01 Overtime - Full Time 0 240-46500.00-51208.01 Sick Leave - Buy Down 0 0 0 1,421 1,331 1,906 575 240-46500.00-51301.00 Accrued Comp Time 0 240-46500.00-51400.00 Compensated Absences 637 728 744 808 961 1,000 39 240-46500.00-51450.00 Social Security Contributions 6,771 7,132 7,287 7,980 8,214 8,525 311 240-46500.00-51451.00 Medicare Contributions 1,583 1,668 1,704 1,866 1,921 1,994 73 240-46500.00-51460.00 PERA Contributions 8,025 8,462 8,649 9,381 9,672 10,046 374 240-46500.00-51463.00 MN Paid Leave Contribution 0 0 0 0 0 605 605 240-46500.00-51470.00 Health Insurance 7,850 8,455 10,643 13,493 13,038 15,117 2,079 240-46500.00-51472.00 Retiree HCSP Contributions 240 240 300 300 360 420 60 240-46500.00-51473.00 Dental Insurance 540 540 540 457 489 511 22 240-46500.00-51474.00 Life Insurance 68 68 68 68 68 68 0 240-46500.00-51477.00 Workers Compensation Insurance 628 737 655 773 680 569 (111) 240-46500.00-52010.00 Office Supplies 0 240-46500.00-53020.00 Legal Services 2,000 1,000 1,000 1,000 1,000 1,000 0 240-46500.00-53100.80 Professional Services - General 380,000 78,300 75,000 75,000 150,000 75,000 (75,000) 240-46500.00-53210.00 Telecommunications 250 0 240-46500.00-53310.10 Training and Employee Development 500 500 500 500 500 500 0 240-46500.00-53510.00 Required Notice Publication 0 240-46500.00-53510.01 Maint Agreements Misc Bldg & Structures 5,000 5,000 5,000 1,500 2,000 500 240-46500.00-54310.00 Memberships and Subscriptions 500 500 500 500 250 250 0 240-46500.00-54320.00 Miscellaneous Expense 500 10,500 19,000 19,000 18,700 10,000 (8,700) 240-46500.00-55040.00 Projects - Property & ROW Acquisit'n 385,000 385,000 385,000 385,000 385,000 0 240-46500.00-55050.00 Projects - Professional Services 0 Total Expenditures 519,294 623,857 634,115 649,834 724,838 650,109 (74,729) 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 24-03 EDA A RESOLUTION APPROVING THE 2026 ECONOMIC DEVELOPMENT AUTHORITY TAX LEVY AND BUDGET Motion By: Second By: WHEREAS, State Statute 469.107 subd. 1 provides that a city may, at the request of the Prior Lake Economic Development Authority (EDA), levy a tax in any year for the benefit of the EDA in an amount not to exceed 0.01813 percent of estimated market value; and WHEREAS, The EDA proposes a 2026 tax levy for economic development purposes in the amount of $405,000; and WHEREAS, The EDA proposes a 2026 annual budget in the amount of $650,109. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The EDA requests that the Prior Lake City Council levy a special tax of $405,000 to be collected in 2026 pursuant to Minnesota Statutes 469.107. 3. The EDA requests that the Prior Lake City Council adopt the 2026 EDA annual budget in the amount of $650,109. Passed and adopted this 14th Day of July 2025. VOTE Prchal Braid Marco Lake Boucher-Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, Executive Director