Loading...
HomeMy WebLinkAbout10-07-14CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES October 7, 2014 Chair Starfield called the meeting to order at 4:34 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Starfield, Tushie, Julius, Smith, Matasosky, Longie, Emond, Collman, Ex -officio member Lakeville Area Chamber of Commerce President Tim Roche. Members Absent: Comms. Vlasak, Mayor Matt Little, Interim City Administrator Allyn Kuennen Others Present: David Olson, Community & Economic Development Director; Rick Howden, Economic Development Specialist. 2. Approval of August 26, 2014 meeting minutes Motion Comms. Matasosky/Smith moved to approve the minutes of the August 26, 2014 meeting as presented. Motion carried unanimously. 3. Review of Draft BTD Tax Increment Financing Plan Mr. Olson stated BTD Manufacturing has submitted a request for Tax Increment Financing (TIF) to assist in the $4,347,147 TIF eligible project costs associated with the project. Mr. Olson also stated that one of the requirements of the TIF Statutes is that the City prepare a Tax Increment Financing Plan, prepared by Springsted Inc, which was included in the meeting packet. Mr. Olson explained that the County Assessor has provided an estimated range of $12,600,000 to $14,100,000 as the Estimated Market Value for this property after the proposed expansion. The current Estimated Market Value of this property is $7,200,000, which will result in an estimated available tax increment in 2017 of $119,806 and estimated available increment of $146,601 in 2024. The total estimated amount of available increment for the total duration of the proposed TIF District is $1,077,832. After retaining 5% for administration of the TIF District, the net available tax increment for the project would be $1,023,941. Mr. Olson stated that the reason for retaining funds for administration had to deal with filing reports with the State Auditor, as well as additional internal financial reports that have to be compiled. Economic Development Commission Meeting Minutes, October 7, 2014 Page 2 Mr. Olson explained that since this TIF District will be structured as a "pay-as-you- go" project, the actual amount of increment that will be available will be based on the actual amount of new taxes paid in the future. Mr. Olson stated that this minimizes the risk for the City, as the company will be reimbursed for taxes already collected. There was discussion regarding the lease arrangement of BTD, if they were owned by the same entity or different entities. Mr. Olson indicated that this project will be different than the previous Menasha TIF District, where the owner of the building is the Fulford Group and BTD will be a lessee. BTD will be paying the property taxes through their lease and will be the beneficiary of the TIF District. Mr. Olson requested the EDC recommend to the City Council approval for the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 19 for the BTD Manufacturing Expansion Project. Motion Comms. Smith/Emond moved to recommend to the City Council approval for the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 19 for the BTD Manufacturing Expansion Project. Motion carried. Comm. Matasosky abstained, due to his company, APPRO Development, constructing BTD's expansion. 4. Update on 2014 Manufacturers Event Mr. Howden stated that once again this year, the City of Lakeville will be recognizing our local manufacturers during Minnesota Manufacturing Week, which will take place October 20th -24th. We will be hosting our annual reception for manufacturers at Brackett's Crossing Country Club on Tuesday, October 21St from 4:30-6:30pm. Mr. Howden explained that in addition to the reception, the City has been working with the Lakeville Area Chamber of Commerce to make visits to targeted manufacturers in the Industrial Park the week before Minnesota Manufacturers Week. The goals of the visits are to conduct business retention visits and to encourage attendance at this year's manufactures reception event. Mr. Roche from the Lakeville Area Chamber of Commerce provided an updated itinerary of site visits scheduled. Mr. Howden explained that all EDC Members are invited to attend site visits and if they are able to attend to let him know to expect them for the visit. There was discussion regarding the RSVPs and the program specifics. Mr. Olson reported that there were approximately 50 RSVPs to date and approximately 5 requests for display tables from businesses. There will also be displays for our sponsors, Dakota Electric, Frontier Communications, and Minnesota Energy Resources. Xcel Energy is a sponsor but has not requested a table this year. Additionally the Lakeville Area Chamber of Commerce will also have a table at this Economic Development Commission Meeting Minutes, October 7, 2014 Page 3 year's reception. At approximately 5:30pm, Mayor Little will begin with a welcome statement and following the Mayor's welcome will be prize drawings. 5. Director's Report Mr. Olson reviewed the Director's Report. He commented on the Building Permit Report. He highlighted the downtown parking lot improvements, stating that paving should be starting on Thursday. Mr. Olson highlighted Mendell as they were recognized with a Silver award for midsize company (51 to 250 employees) by Minnesota Business Magazine at their 2014 Manufacturing Awards. Summit Brewing received the Gold award in that class. Mr. Olson noted that the City Council had approved an application from HyVee and Tradition Development for a proposed grocery store in the commercial portion of the Spirit of Brandtjen Farm Development. Mr. Olson explained that cities and counties in the outlying areas have banded together to highlight the issues in the Metropolitan Council's 2040 Transportation Policy Plan, as it does not adequately address the operations, maintenance, and capacity of the regional transportation system. Mr. Olson explained that staff will continue to forward updates on this issue. Mr. Olson noted that he and Mr. Howden will be attending the 8th Annual Minnesota Commercial Association of Realtors on Wednesday, October 29th. The event will allow them to network with 500+ MNCAR professionals and help market the City of Lakeville. Mr. Olson explained that the City Council had approved the FedEx Freight facility at their meeting the previous evening. The facility will be a long cross -dock building that will accommodate FedEx's business to business shipping. Approximately 125 jobs are expected to be created at first. Their plans also include future expansion. There have been discussions over a number of the site improvements that will need to be made. One to note is the extension of Humboldt Road to provide a secondary access to the site. The primary access for FedEx will come from Dodd Blvd onto 217th Street. The City Council approved the project with minimal complaints from residents close to the project site. The land being acquire has been zoned industrial for decades and there will be landscaping and screening to create a buffer. Economic Development Commission Meeting Minutes, October 7, 2014 Page 4 6. Adjourn Meeting adjourned at 5:28 p.m. Respectfully submitted by: Ri k Ho den, Ed6nomic INKelopment Specialist