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Home My WebLink About06 09 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, June 9, 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 / June 9, 2025 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. April 14, 2025 4. CONSENT AGENDA A. Monthly Development Update (5/31/25) 5. OLD BUSINESS 6. NEW BUSINESS A. Fast-Track Challenge Sponsorship B. Prior Lake B Squared Ventures Preliminary Development Agreement Amendment C. Strategic Property Acquisition Discussion 7. OTHER BUSINESS A. Staff Updates i. 2026 EDA Budget Direction ii. Chula’s Groundbreaking B. Commissioner Comments 8. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Monday, April 14, 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 and Braid. Absent were Marco and Boucher-Hoese. Also present were Executive Director Wedel, Community Development Director McCabe, and Deputy City Clerk / Administrative Assistant Kooiman. EDA Commissioners welcomed the new EDA Commissioner, Victor Lake. 2. APPROVAL OF AGENDA MOTION BY BRAID, SECONDED BY LAKE TO APPROVE THE AGENDA Ayes by Prchal, Braid, and Lake. That motion carried 3-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRAID, SECONDED BY PRACHAL TO APPROVE THE February 10, 2025, MEETING MINUTES. Ayes by Prchal and Braid with Lake abstaining. That motion carried 2-0-1. 4. CONSENT AGENDA A. Monthly Development Update (3/31/25) McCabe: provided the Commissioners with a commercial and residential permit update as of March 31, 2025. MOTION BY LAKE, SECONDED BY BRAID TO APPROVE THE CONSENT AGENDA. Ayes by Braid, Prchal, and Lake. That motion carried 3-0. 5. PRESENTATIONS None. 6. OLD BUSINESS None. 7. NEW BUSINESS A. Consider Amendment and Extension to the Dakota Street Preliminary Development Agreement Director McCabe: Introduced the new business agenda item. McCabe gave a brief history of previous preliminary development agreements and the current circumstances of the current agreement based on EDA direction at the previous meeting. EDA Commissioners: discussed the preliminary development agreement and the different benchmarks that need to be achieved for the agreement to automatically extend to the end of November 2025. 4646 Dakota Street SE Prior Lake, MN 55372 MOTION BY BRAID, SECOND BY LAKE AUTHORIZING THE EXECCUTIVE DIRECTOR TO EXECUTE THE FIFTH AMENDEMENT TO THE PRELIMINARY DEVELOPMENT AGREEMENT. Ayes by Braid, Prchal, and Lake. That motion carried 3-0. 8. OTHER BUSINESS A. Staff Updates Director McCabe: updated commissioners on upcoming residential and commercial projects around the City of Prior Lake. B. Commissioner Comments 9. ADJOURNMENT MOTION BY BRAID, SECOND BY LAKE TO ADJOURN THE MEETING. Ayes by Braid, Prchal, and Lake. That motion carried 3-0. The meeting adjourned at 4:39 p.m. Submitted by Megan Kooiman 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: June 9, 2025 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 May 31, 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 May 31, 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. Development Update Phone 952.447.9800 / www.priorlakemn.gov Memo Date: June 9, 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 May 31, 2025. Single Family Dwellings 14 $7,251,838.00 30 $14,700,496.00 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 2 $5,841,232.00 1 $1,500,000.00 Residential 381 $8,148,737.26 379 $9,779,757.32 Industrial & Commercial 17 $2,407,293.00 7 $2,133,748.00 tMechanical 481 $0.00 388 $0.00 ttMechanical (SF & TH)56 $0.00 120 $0.00 TOTALS 952 $29,149,100.26 930 $57,519,057.32 -49.32% 289.42% -16.68% 12.82% n/a n/a 2025 Year to Date 2024 Year to Date New Residential 23.97% -53.33% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -50.67% -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 -53.33% -100.00% 0.00% 100.00% 0.53% 142.86% Number of Permits Declared Value 2.37% 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: June 9, 2024 AGENDA #: 6A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Fast-Track Challenge Sponsorship DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution approv- ing sponsorship of the Scott County CDA Fast-Track Challenge. History The first Scott County Fast-Track Challenge was initiated and hosted by the Pri- or Lake Technology Village Business Accelerator Program in 2017. The event is now hosted by the Scott County Center for Entrepreneurship following the mer- ger of the Technology Village program into the county-wide program. Current Circumstances The 9th Annual Scott County Fast-Track Challenge will be held in October. The Scott County Center for Entrepreneurship sent a request to all Scott County communities seeking assistance to obtain sponsors and donations of cash and in-kind services to support this year’s event. The EDA approved a Fast-Track Challenge sponsorship contribution in the amount of $1,000 in previous years to be used toward a marketing contract for the event, opposed to a cash award to the event winner(s). Conclusion If interested in sponsorship, the EDA should discuss whether their contribution should again be used toward the marketing contract or other service, as op- posed to a cash award to the event winner(s). The attached resolution identifies a donation of $1,000 to be used toward a marketing contract for the event. The EDA should provide direction to staff if they wish to provide a different amount of funding, or if they wish for the funding to be used for another purpose. FINANCIAL IMPACT: If approved, funds will be provided from EDA Professional Services - General (240-46500.00-53100.80) in the 2025 EDA budget. ALTERNATIVES: 1. Motion and second approving a resolution approving a $1,000 sponsorship contribution to be utilized for a marketing contract for the event. 2. Motion and second approving a resolution approving a sponsorship contribu- tion of a different amount and/or a different purpose. 3. Motion and second to deny the request for sponsorship. RECOMMENDED MOTION: Alternative No. 1 SPONSORSHIP AGREEMENT The Scott County FAST-TRACK Challenge is a business competition open to Scott County residents, or businesses willing to locate in Scott County, that have incorporated within the past five years, who wish to pitch their new product or idea to a panel of judges with the hope to fast track their business! The Challenge is coordinated by the Scott County CDA’s Center for Entrepreneurship and will be held at The CDA’s new agency office in Shakopee. The live event will be held on Thursday, October 9th, 2025. Prizes will include cash and professional service packages. As a sponsor and/or service provider, you will receive the following: • Recognition on all print/marketing materials. • Recognition on social media • Recognition in the FAST-TRACK Challenge video • Recognition at the live event • Media exposure in post event announcements • Sponsors may be provided a seat on the panel of judges • Table at the event to market your company Please select your desired level of participation: Sponsorship Levels: _____ Gold ($5,000). Gold Level Sponsorship provides the company with the opportunity to be eligible for a seat on the judges’ panel. Gold sponsors will receive media exposure including social media, print, video and recognition at the live event. Gold sponsors’ logos will be included on a banner at the event. _____ Silver ($2,500). Silver Level Sponsors will be recognized through social media, print advertising, videos and recognition at the live event. Silver sponsors’ logos will be included on a banner at the event. _____ Bronze ($1,000). Bronze Level Sponsors will be recognized through social media, print advertising, videos and recognition at the live event. _____ Copper $_____ (Insert amount). Sponsors will be recognized through social media, print advertising, videos and recognition at the live event. *All sponsors will be provided an opportunity to display information at the event, in the staging/refreshment area, if desired. A table will be provided. If interested in a display table, please check here: _____ As a Sponsor your signature certified you agree to the following: 1. Sponsors shall provide a check to the Scott County CDA, who will in turn write a check(s) to the qualified winner(s). Funds will be restricted to be used for the business development. 2. Sponsors agree to allow FAST-TRACK Challenge (Scott County CDA - CFE to use their corporate names and logos on marketing materials, unless they wish to remain anonymous. If you wish to remain anonymous please check here: ____ Sponsor Information Company Name: ________________________________________________________________ Contact Name: _________________________________________________________________ Title of Authorized Representative: ________________________________________________ Address: ____________________________________ City: ______________________________ State: ____________ Zip Code: ________________ Phone #:__________________________ Email Address: _______________________________ Signature of Authorized Representative: ____________________________________________ Date: _________________________________________________________________________ 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 25-02 EDA RESOLUTION APPROVING FAST-TRACK SPONSORSHIP AND AUTHORIZING THE EDA EXECUTIVE DIRECTOR TO EXECUTE THE SPONSORSHIP AGREEMENT Motion By: Second By: WHEREAS, WHEREAS, WHEREAS, The Scott County Center for Entrepreneurship is hosting the 9th annual Scott County Fast-Track Business Challenge in October 2025; and The Scott County Center for Entrepreneurship sent a request seeking sponsorship in the form of cash and in-kind services for this year’s event; and The Economic Development Authority for the City of Prior Lake (“EDA”) considered sponsorship at their June 9, 2025 meeting and voted to provide $1,000 to be utilized toward a marketing contract for the event. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY as follows: 1. The recitals set forth above are incorporated herein. 2. The EDA will be a Bronze Level Sponsor in the amount of $1,000. 3. The EDA Executive Director is authorized to execute the Scott County Fast-Track Business Challenge Sponsorship Agreement. 4. Funds will be provided from EDA Professional Services - General (240-46500.00-53100.80) in the 2025 EDA budget. PASSED AND ADOPTED THIS 9th DAY OF JUNE 2025. VOTE Prchal Braid Marco Lake Boucher- Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ____________________________ Jason Wedel, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: June 9, 2025 AGENDA #: 6B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Prior Lake B Squared Ventures Preliminary Development Agreement Amendment DISCUSSION: Introduction The purpose of this agenda item is to consider an amendment and extension to the Preliminary Development Agreement with Prior Lake B Squared Ven- tures, LLC. History On October 18, 2021, the EDA, City of Prior Lake, and Prior Lake B Squared Ventures, LLC (the “Developer”) entered into a Preliminary Development Agreement which identified steps and obligations related to necessary approv- als for the Developer to construct a new building on EDA and City owned prop- erty at 4662, 4664, and 4666 Dakota Street SE. The Preliminary Development Agreement designates Prior Lake B Squared Ventures, LLC as the sole developer of the property during the term of the agreement. The EDA and City are not to market the property or make, accept, negotiate, or otherwise pursue any other offers for sale or purchase until the agreement expires. The parties have since approved five amendments to the Preliminary Develop- ment Agreement extending the expiration date; the current expiration date is July 31, 2025 which may automatically extend to November 30, 2025 based on the developer providing evidence the development is continuing toward a 2025 construction start date. Current Circumstances The Developer has identified another firm, Northland Real Estate Group, who is proposing to acquire the Prior Lake B Squared Ventures entity following final city approvals and construct & own the building. Staff have met with the Devel- oper and Northland Real Estate Group and feel the Developer has demon- strated the project is continuing towards a 2025 construction date and there is a high likelihood the project will proceed to construction this year. Northland Real Estate Group is not proposing any modifications to the preliminarily ap- proved plans. Conclusion Attached is the Sixth Amendment to the Preliminary Development Agreement extending the effective date from July 31, 2025 to November 30, 2025 and re- 2 moving the conditions requiring the Developer to provide evidence the devel- opment is continuing toward a 2025 construction start date. The amendment would allow the Developer and Northland Real Estate Group to proceed with their due diligence and planning without fear the agreement expire at the end of July. ALTERNATIVES: 1. Motion and a second authorizing the Executive Director to execute the Sixth Amendment to the Preliminary Development Agreement. 2. Provide direction to staff and continue discussion at a future meeting. RECOMMENDED MOTION: Alternative No. 1 ATTACHMENT: 1. Sixth Amendment to the Preliminary Development Agreement Page 1 of 2 SIXTH AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT by and between Economic Development Authority for the City of Prior Lake (the “EDA”) and City of Prior Lake (the “City”) and Prior Lake B Squared Ventures, LLC (the “Developer”) WHEREAS, THE PARTIES ABOVE MENTIONED entered into a Preliminary Development Agreement (“Agreement”) on October 18, 2021 identifying steps and obligations related to necessary approvals for Developer to construct a new building on EDA and City owned property at 4662, 4664, and 4666 Dakota Street SE, Prior Lake, MN 55372; and WHEREAS, said Agreement was effective from October 18, 2021 through August 31, 2022; and WHEREAS, on September 28, 2022, EDA, City, and Developer entered into the First Amendment to Preliminary Development Agreement to amend Section 6. Effective Date; Expiration of the Agreement to extend the term of the Agreement from August 31, 2022 to August 31, 2023; and WHEREAS, on September 26, 2023, EDA, City, and Developer entered into the Second Amendment to Preliminary Development Agreement to amend Section 6. Effective Date; Expiration of the Agreement to extend the term of the Agreement from August 31, 2023 to August 31, 2024; and WHEREAS, on September 6, 2024, EDA, City, and Developer entered into the Third Amendment to Preliminary Development Agreement to amend Section 6. Effective Date; Expiration of the Agreement to extend the term of the Agreement from August 31, 2024 to March 31, 2025; and WHEREAS, on February 11, 2025, EDA, City, and Developer entered into the Fourth Amendment to Preliminary Development Agreement to amend Section 6. Effective Date; Expiration of the Agreement to extend the term of the Agreement from March 31, 2025 to July 31, 2025; and WHEREAS, on April 16, 2025, EDA, City, and Developer entered into the Fifth Amendment to Preliminary Development Agreement to amend Section 6. Effective Date; Expiration of the Agreement to extend the term of the Agreement to November 30, 2025 provided the Development continues to progress toward construction commencing in 2025. Said amendment inserted the following language, This Agreement is effective from the date hereof through July 31, 2025. Should Developer provide evidence the Development is continuing toward a 2025 construction start date, including 1) evidence identifying the required funding has been secured; 2) apply for Final Planned Unit Development Plan approval; and 3) submit a complete building permit application and final building plans for city review, the effective date hereof shall automatically extend to November 30, 2025. After such date, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein; and WHEREAS, The Developer has provided evidence the Development is continuing toward a 2025 construction start date; and WHEREAS, EDA, City, and Developer desire to further amend Section 6. Effective Date; Expiration of the Agreement to extend the term of the Agreement to November 30, 2025 and delete the language related to Developer providing evidence the Development is continuing toward a 2025 construction start date. Page 2 of 2 NOW THEREFORE BY THIS AMENDMENT, EDA, City, and Developer hereby mutually agree to amend Section 6. Effective Date; Expiration of the Agreement as follows: 6. Effective Date; Expiration. This Agreement is effective from the date hereof through November 30, 2025. After such date, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. CONTINUING VALIDITY OF THE AGREEMENT, all other terms and conditions of the Preliminary Development Agreement, dated October 18, 2021, shall remain in effect. IN WITNESS WHEREOF, the Developer, EDA and City have caused this Agreement to be duly executed. DEVELOPER: Prior Lake B Squared Ventures, LLC By: By: William Beard Ben Beard Its: President Its: Vice President Date: Date: EDA: Economic Development Authority for the City of Prior Lake, Minnesota By: Jason Wedel Its: Executive Director Date: CITY: City of Prior Lake, Minnesota By: Jason Wedel Its: City Manager Date: