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Home My WebLink About04 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, April 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 / April 14, 2025 1. CALL TO ORDER A. Welcome EDA Commissioner Victor Lake 2. APPROVAL OF AGENDA 3. APPROVAL OF MEETING MINUTES A. February 10, 2025 4. CONSENT AGENDA A. Monthly Development Update (3/31/25) 5. PRESENTATIONS 6. OLD BUSINESS 7. NEW BUSINESS A. Consider Amendment and Extension to the Dakota Street Preliminary Development Agreement 8. OTHER BUSINESS A. Staff Updates i. 2025 Commercial/Industrial Development Update B. Commissioner Comments 9. ADJOURNMENT PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Monday, February 10, 2025 – 4:00 p.m. Parkview Conference Room 1. CALL TO ORDER Chair Prchal called the meeting to order at 4:02 p.m. In attendance were Prchal, Marco, Boucher- Hoese, Briggs and Braid. Also present were representatives of The Beard Group, Councilor Victor Lake, Executive Director Wedel, Community Development Director McCabe, and Deputy City Clerk / Administrative Assistant Kooiman. 2. APPROVAL OF AGENDA MOTION BY BOUCHER-HOESE, SECONDED BY MARCO TO APPROVE THE AGENDA Ayes by Prchal, Braid, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRAID, SECONDED BY BOUCHER-HOESE TO APPROVE THE JANUARY 13, 2025, MEETING MINUTES. Ayes by Prchal, Boucher-Hoese Braid and Marco. Briggs Abstained. That motion carried 4-0-1. 4. CONSENT AGENDA A. Monthly Development Update (1/31/25) McCabe: provided the Commissioners with a commercial and residential permit update as of January 31, 2025. MOTION BY BRAID, SECONDED BY BOUCHER-HOESE TO APPROVE THE CONSENT AGENDA. Ayes by Braid, Prchal, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. 5. PRESENTATIONS A. Cora Project Update with The Beard Group Representatives of The Beard Group were in attendance to provide an update on the Cora Apartment project including delays due to project financing and the changes in the market since the project was initially proposed. The Beard Group requested an extension to the Preliminary Development Agreement which is set to expire at the end of March 2025. EDA Commissioners: Thanked the Beard Group for their continued work and expressed a mutual interest in seeing the project completed. Commissioners were comfortable with a short extension but hesitant to grant a longer extension without establishing specific and measurable goals for the developer to show progress toward construction. Commissioners discussed certain tasks that would show progress. MOTION BY BRIGGS, SECONDED BY BRAID TO APPROVE AN EXTENSION OF FOUR MONTHS (TO JULY 31, 2021) TO THE PRELIMINARY DEVELOPMENT AGREEMENT WITH PL B SQUARED VENTURES, LLC. Ayes by Braid, Prchal, Boucher-Hoese, Briggs and Marco. 4646 Dakota Street SE Prior Lake, MN 55372 That motion carried 5-0. MOTION BY BRIGGS, SECONDED BY MARCO DIRECTING STAFF TO PREPARE AN ADDITIONAL EXTENSION OF FOUR MONTHS (TO NOVEMBER 31, 2025) FOR FUTURE EDA CONSIDERATION THAT WOULD INCLUDE AN AUTOMATIC RENEWAL SHOULD PL B SQUARED VENTURES, LLC COMPLETE SPECIFIC TASKS TOWARD CONSTRUCTION. Ayes by Braid, Prchal, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. 6. OLD BUSINESS None. 7. NEW BUSINESS A. Approval of ACC 2025-2029 Strategic Plan McCabe reviewed the updated Arts and Culture Committee (ACC) five-year strategic plan, highlighting short-term strategic priorities, anticipated funding needs and funding sources. McCabe stated the ACC has approved the strategic plan and is requesting EDA approval as support for the strategic initiatives identified by the ACC. MOTION BY MARCO, SECOND BY BRAID TO APPROVE THE ARTS AND CULTURE COMMITTEE 2025-2029 STRATGIC PLAN. Ayes by Braid, Prchal, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. i. Funding Request Following approval of the ACC Strategic Plan, McCabe reviewed the proposed funding sources and a related ACC request for $7,500 of 2025 EDA Professional Services which represents 50% of the anticipated 2025 Community Artist budget. EDA Commissioners: expressed appreciation for the ACC and the work being done but were not prepared to support a motion for approval of the $7,500 until the remaining $7,500 necessary for the Community Artist project was secured. Instead of approving the transfer of $7,500 from the EDA Professional Services fund to the ACC, the EDA supported a motion approving the funding request as a funding match after the ACC secures the initial $7,500 required. MOTION BY BRIGGS, SECOND BY MARCO TO APPROVE AN ALLOCATION OF $7,500 TO THE ACC FOR THE 2025 COMMUNITY ARTIST PROGRAM ONCE THE ACC HAS SECURED THE INITIAL $7,500 REQUIRED. Ayes by Braid, Prchal, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. B. ACC Sculpture Historic Date/Event Timeline Review McCabe: reviewed a number of historic dates and events assembled by the Arts and Culture Committee for placement on the sculpture being commissioned for downtown Prior Lake. EDA Commissioners: provided thoughts and recommendations on which events they did not feel were necessary to include in the sculpture and other events they felt were worthy of inclusion. 8. OTHER BUSINESS A. Staff Updates i. City Council Retreat / 2025 Priorities City Manager Wedel informed the EDA that the City Council held a retreat in early February to review progress on the strategic plan, discuss liaison appointments, and review a list of staff work items to ensure staff and the council agree on priorities for 2025. B. Commissioner Comments i. 2025 City Council EDA Appointments Briggs informed the EDA that he will no longer serve on the Commission. The City Council annually appoints councilors to serve in various liaising positions. The City Council held a retreat in early February where liaison appointments were discussed. It was determined that Councilor Victor Lake would be the City Council appointment to the EDA in 2025. 9. ADJOURNMENT MOTION BY BRIGGS, SECOND BY BRAID TO ADJOURN THE MEETING. Ayes by Braid, Prchal, Boucher-Hoese, Briggs and Marco. That motion carried 5-0. The meeting adjourned at 6:02 p.m. Submitted by Megan Kooiman 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: April 14, 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 March 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 March 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: April 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 March 31, 2025. Single Family Dwellings 8 $4,078,069.00 15 $7,032,855.00 Townhouses (# units)0 $0.00 0 $0.00 Multiple Units 0 $0.00 1 $28,733,056.00 New Commercial Industrial & Commercial 0 $0.00 0 $0.00 Residential 195 $4,464,828.28 160 $5,297,231.67 Industrial & Commercial 9 $1,864,525.00 5 $1,717,748.00 tMechanical 225 $0.00 221 $0.00 ttMechanical (SF & TH)32 $0.00 60 $0.00 TOTALS 469 $10,407,422.28 462 $42,780,890.67 -75.67% #DIV/0! -15.71% 8.54% n/a n/a 2025 Year to Date 2024 Year to Date New Residential 1.81% -46.67% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -42.01% 100.00% -100.00% 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 -46.67% 100.00% -100.00% #DIV/0! 21.88% 80.00% Number of Permits Declared Value 1.52% 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: April 14, 2025 AGENDA #: 7A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Consider Amendment and Extension to the Dakota Street Preliminary De- velopment Agreement DISCUSSION: Introduction The purpose of this agenda item is to consider an amendment and extension to the Dakota Street Preliminary Development Agreement with PL B Squared Ventures, 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 parties have since ap- proved four amendments to the Preliminary Development Agreement extend- ing the expiration date; the current expiration date is July 31, 2025. Representatives of Prior Lake B Squared Ventures have attended several EDA meetings to provide updates on the Cora Apartment project; most recently at- tending the February 10, 2025 meeting. The Developer stated that entitlements are 95% complete and discussed increased costs due to material, labor, and interest rates. Current Circumstances 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. Due to the substantial investment the Developer has made in this project to date, they requested an extension of the preliminary development agreement during the February EDA meeting. Commissioners discussed an appropriate extension term and approved an initial extension from March 31, 2025 to July 31, 2025. Commissioners also directed staff to prepare an amendment and extension to the Dakota Street Preliminary Development Agreement for an ad- ditional four months, to November 30, 2025, based on the Developer meeting certain benchmarks toward construction. 2 Conclusion Attached is the Fifth Amendment to the Preliminary Development Agreement modifying the effective date from July 31, 2025 to November 30, 2025 based on the Developer providing evidence the development is continuing toward a 2025 construction start date. The amendment requires the developer to 1) pro- vide evidence identifying the required funding has been secured; 2) apply for Final Planned Unit Development Plan approval; and 3) submit a complete build- ing permit application and final building plans for city review. Should the Devel- oper meet these targets, the effective date shall automatically extend to No- vember 30, 2025. After such date, neither party shall have any obligations un- der the agreement. ALTERNATIVES: 1. Motion and a second authorizing the Executive Director to execute the Fifth 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. Fifth Amendment to the Preliminary Development Agreement Page 1 of 2 FIFTH 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, 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 provided the Development continues to progress toward construction commencing in 2025. 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 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. CONTINUING VALIDITY OF THE AGREEMENT, all other terms and conditions of the Preliminary Development Agreement, dated October 18, 2021, shall remain in effect. Page 2 of 2 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: