HomeMy WebLinkAbout05-26-15
CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
May 26, 2015
1. Chair Starfield called the meeting to order at 4:30 p.m. in the Marion Conference Room at
City Hall.
Members Present: Comms. Starfield, Longie, Collman, Rajavuori, Matasosky, Emond,
Scherer, Smith, Vlasak, Ex-officio member City Administrator Justin Miller
Members Absent: Comms. Gillen, Ex-officio members Roche and Mayor Little
Others Present: David Olson, Community & Economic Development Director; Rick
Howden, Economic Development Specialist.
2. Approval of April 28, 2015 meeting minutes
Motion Comms. Matasosky/Smith moved to approve the minutes of the April 28,
2015 meeting as presented. Motion carried unanimously.
3. Presentation of Dakota Countywide Broadband Study
City Administrator Justin Miller gave a brief background on a working group of City
Administrator and Managers focused on fiber infrastructure. The group is focused on
positioning Dakota County to be competitive in economic development with enhancing its
fiber infrastructure. Neighboring counties had made significant investments in fiber
infrastructure early on and saw an increase in major economic development projects. Mr.
Miller distributed a map showing known existing fiber networks in Dakota County.
Mr. Miller explained that the next steps include entering into a Joint Powers Agreement
with Dakota County and the other cities to agree to move forward. In the meantime , the
City has been working with the County when road construction projects are taking place
to incorporate a design-once process to incorporate the necessary infrastructure to
accommodate fiber throughout the City.
4. Review of Proposed TIF Plan for TIF District No. 20 for Mendell Inc. Expansion
Mr. Olson stated that Mendell Inc. contacted the City recently and presented plans for a
18,700 square foot expansion of their building located at 21463 Grenada Avenue .
Mendell is a medical device manufacturing company and is experiencing considerable
growth and needs to add additional manufacturing and warehouse space to their
existing building. The company has submitted a request for Tax Increment Financing
(TIF) to assist with the $360,000 in eligible site improvement costs associated with the
project. Mendell has operated in Airlake since 2003 and currently has 94 employees.
In addition to retaining the existing 94 jobs in Lakeville, the proposed expansion will
create an additional 12-25 jobs. The City Council reviewed this proposed TIF project at
the April 27th Work Session and the EDC reviewed this request at the April 28th meeting
and both recommended proceeding with the necessary steps to create a new TIF District
for the project.
Mr. Olson also pointed out that Exhibit III indicates, the estimated net amount of
increment that will be available over the life of the proposed TIF District for Mendell is
approximately $156,000. This is based on the County Assessor’s Office estimate market
value of $1,047,000 for the proposed expansion. It also assumes a 3% market value
inflator which may or may not occur. Additionally, the assistance will be provided on a
pay-as-you-go reimbursement basis each year after the property taxes have been paid
by Mendell.
Mr. Olson explained that this request will go to the Dakota County Board of
Commissioners on June 2nd for their opportunity to comment. Following that meeting, the
Lakeville City Council will hold a public hearing on June 15th, in which a recommendation
from the EDC would be included.
Motion Comms. Longie/Emond moved to recommend approval of the Tax
Increment Financing Plan for Tax Increment Financing District No. 20 to the City Council.
Motion carried. Comms. Matasosky abstained due to his firm’s involvement in the
project.
5. Update on Post Holdings Headquarters Announcement
Mr. Olson provided an update on the summary of the discussions with Post since the
announcement as well as the next steps to be taken by both the City and the State of
Minnesota on this job retention project.
6. Review Strategic Plan for Economic Development 2015 Work Program
Mr. Howden presented an updated version of the 2015 Strategic Plan for Economic
Development Work Program. Included in this version are target dates that have been
identified for each activity. With no objections, staff will utilize the presented work
program for the remainder of 2015.
7. Director’s Report
Mr. Olson reviewed the Director’s Report. Because of the significant increase in building
permit activity, the City Council recently authorized the hiring of an additional Plans
Examiner/Building Inspector position. The person that was hired for this position started
this past Monday, May 18th.
It was announced at the May 13 th Downtown Lakeville Business Association meeting that
Metro Equity is in discussions with a restaurant operator and micro brewer regarding a
proposed brew pub to be located in the former VFW building in Downtown Lakeville. The
project, if it proceeds, will involve considerable renovation of the interior of the fo rmer
VFW and will also include the construction of an outdoor patio.
The City was notified in late April that the joint City/Chamber of Commerce/School
District’s application to the Frontier Communications America’s Best Communities was
not selected to be a quarter finalist. There were 347 cities that applied in states served
by Frontier Communications and only the City of Chisago was selected to move on in the
process. While Lakeville was not selected, there was still considerable benefit from
going through the application process in partnership with the Chamber of Commerce and
School District.
City staff recently participated in a meeting coordinated by Greater MSP with a national
site selector and a major national manufacturer looking to locate a regional
manufacturing in Minnesota. Representatives of the Minnesota Department of
Employment and Economic Development were also in attendance. They expect to make
a location decision sometime this summer.
The City recently issued a building permit and construction will be starting soon on the
expansion of Applied Power Products (APP) located at the intersection of Lakeville
Boulevard and Heron Way. The expansion involves a 43,900 square foot expansion of
the Company’s existing 70,000 square foot building.
8. Adjourn
Meeting adjourned at 5:40 p.m.
Respectfully submitted by
Rick Howden, Economic Development Specialist