Loading...
HomeMy WebLinkAbout01-22-13CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES January 22, 2013 Acting Chair Starfield called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Longie, Brantiy, Emond, Starfield, Tushie, Schubert, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser, Ex- officio member Mayor Matt Little, Ex- officio member City Administrator Steve Mielke. Members Absent: Comm. Vlasak, Smith, Matasosky (via conference call). Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist; Brett Altergott, Parks & Recreation Director; Dan Licht, TPC Planning Consultant. 2. Approval of November 27, 2012 meeting minutes Motion Comms. Emond /Schubert moved to approve the minutes of the November 27, 2012 meeting as presented. Motion carried unanimously. 3. Review of Commercial /Industrial Park Dedication Analysis Mr. Licht presented the memo outlining the results of a study conducted by appraisal consultant Patchin Messner Dodd & Brumm. The City Council engaged the consultation services of an appraiser to establish an average fair market value for undeveloped commercial properties and a separate average fair market value for industrial properties. Mr. Licht concluded by stating that the City currently charges much less than what it is allowed to under current State Statute. He also noted that the Parks, Recreation, and Natural Resources Committee recommended keeping the park dedication fees at their current levels for commercial and industrial development and increasing it by 5% in 2014. The Planning Commission recommended the fee remain unchanged and is reevaluated as part of the annual budget process. Mr. Licht added that to balance economic development goals and parks goals, City staff is recommending the current park dedication fee stay at its current level and be reviewed next year. Comm. Tushie asked how the full park system will be built out if the current park dedication fee is less than what is needed to fund the current planned build out. Mr. Licht responded that it would be funded with a combination of park dedication fees, general fund property taxes, and possible bond funds from any future referendums approved by the voters. Economic Development Commission Meeting Minutes, January 22, 2013 Page 2 Comm. Starfield noted that it's important to balance the park system versus competitiveness. How does Lakeville compare to other ex -urbs such as Lonsdale? He noted that Farmington currently conducts an appraisal by parcel to determine park dedication fees. Comm. Tushie responded that the average appraisal method is a good method and allows the City to establish a maximum fee amount that can be leveraged via the statute. Chair Matasosky (via conference call) stated that the market should come into play to establish the fee floor. The cap is established by the average appraisal method under statute. All development fees should be studied as it relates to the cost of doing business in Lakeville to ensure a competitive development environment. Comm. Tushie responded that with a substantial amount of parks still to be developed, there needs to be a secure funding source to pay for it. We can look at other development fees, but need to acknowledge that the parks still need to be built out and that comes at a cost. One of the longstanding advantages Lakeville has always had was its parks and the quality of it schools. This strategic advantage has been noted by the EDC and the City shouldn't lose focus on this while striving to become more competitive on fees. Comm. Emond recommended that the park dedication fees remain at their current levels and be reevaluated next year. Comm. Tushie noted that "hidden" fees often are road improvements needed for development projects, Chair Matasosky added that these impacts are often from the County and that Lakeville should continue to advocate for change in County road policies. Motion Comms. Tushie / Emond moved to recommend that the park dedication fee for commercial /industrial development remain the same, and a global view of all development costs in Lakeville in comparison to other cities in the region be prepared for the next budget analysis. Motion carried unanimously. Mayor Little added that it could be debated who Lakeville competes with depending on the development project. Comm. Tushie noted that it can be tough to identify, but in general Lakeville competes with cities such as Burnsville for commercial projects, and cities such as Farmington or even Wisconsin for industrial projects. Comparisons will vary based on the type of development. Mr. Mielke added that the City can utilize fee reductions and incentives based on the competition for each individual project. Economic Development Commission Meeting Minutes, January 22, 2013 Page 3 Mr. Bornhauser noted that the. Comprehensive Parks Plan should be reviewed and reevaluated if we can't truly "afford" it. Mr. Mielke responded that there is a revised draft 2012 Plan but the Council wants that review to come after the Visioning Plan currently underway. 4. Review of Proposed Tax Abatement Policy Mr. Olson reviewed the EDC memo outlining the proposed tax abatement policy. He provided an overview of the recommended objectives and policies for the use of tax abatement and noted its similarities to the recommended TIF policy. Comm. Emond inquired if there have been projects that have recently requested assistance. Mr. Olson responded that there have been several recent requests for assistance. The EDC discussed the differences between tax abatement and TIF and how there needs to be a public benefit demonstrated prior to granting a tax abatement. They also went on to clarify how this will be used as an incentive or assistance versus calling it a subsidy. Mr. Olson noted that it is prudent to conduct due diligence of each individual application for assistance but this is a tool that can be used as an incentive to attract business growth. Mr. Mielke added that the "but -for' test for public assistance will be a City Council decision based on the individual project's merit. Comm. Tushie concluded that the more tools the City has in its toolbox for businesses, the better position we are in. Motion Comms. Tushie /Brantly moved to recommend the draft Tax Abatement policy be forwarded to the City Council for approval. Motion carried unanimously. 5. Discussion of Recent City Council Actions Comm. Longie requested clarification on how the EDC motions are forwarded on to the City Council. Mr. Mielke responded that the Council receives copies of all minutes from boards and commissions on a regular basis, as well as discusses recommendations at work sessions. Comm. Longie inquired about a recent approval of CDBG fund allocation by the City Council and why it was not brought to the EDC prior to approval. Mr. Mielke responded that not all CDBG activities are within the purview of the EDC and that the Council decision this year was on appropriating funds for public improvements and housing initiatives. Economic Development Commission Meeting Minutes, January 22, 2013 Page 4 6. Update on Business Marketing Strategy Implementation Project Mr. Kienberger provided an update on the recent activities related to the implementation of the business marketing strategy. Comm. Brantly noted that at the Marketing Partners meetings the establishment of joint branding elements worked well together. The partners are currently working on defining joint purposes to guide the group for future meetings. Comm. Starfield asked about targeted benchmarks of the Business Marketing Strategy. Mr. Olson responded that the Economic Development Annual Report will be presented at the February EDC meeting. 7. Director's Report Mr. Olson reviewed the Director's Report. He noted that the Open To Business program is getting ready to launch, and that business advisor Laurie Crow will have regular hours at Lakeville City Hall to meet with people interested in receiving small business counseling. 8. Adjourn Meeting adjourned at 6:00 p.m. Respectfully submitted by: Adam Kienberger ecording Secretary