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HomeMy WebLinkAbout09-29-15 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES September 29, 2015 1. Vice Chair Longie called the meeting to order at 4:05 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Longie, Scherer, Vlasak, Rajavouri, Gillen, Emond, Matasosky and Smith. Members Absent: Comms. Starfield, Collman, Ex-officio members Roche, Miller and Little. Others Present: David Olson, Community & Economic Development Director; Rick Howden, Economic Development Specialist. 2. Approval of August 25, 2015 meeting minutes Motion Comms. Emond/Gillen moved to approve the minutes of the August 25, 2015 meeting as presented. Motion carried unanimously. 3. Review of DEED Minnesota Investment Fund Grant Contract, Loan Agreement and Promissory Note for the SSB Manufacturing Company Mr. Howden stated that during the August EDC Meeting, Mr. Olson reviewed the Tax Increment Financing Request for SSB Manufacturing, the company that manufactures Serta and Simmons mattresses. The project consists of a 240,000 square foot manufacturing and warehouse facility. In addition to the City providing Tax Increment Financing and the Minnesota Department of Employment and Economic Development’s (DEED) Job Creation Fund, SSB Manufacturing Company may also receive assistance from DEED’s Minnesota Investment Fund in the amount of $1,000,000.00 for machinery and equipment. On September 8th, the HRA held a public hearing to authorize application to DEED. Initial and supplemental applications from both the business and local unit of government were submitted to DEED. Staff has been informed by DEED that an award letter approving a $1,000,000 forgivable loan for SSB Manufacturing for machinery and equipment is awaiting the Commissioner’s signature and should be received very soon. Following the receipt of an award letter from DEED, a grant contract between DEED and the HRA will need to be executed. This agreement is needed as funding from the Minnesota Investment Fund will be granted to the HRA and then loaned to SSB Manufacturing Company. The HRA will also enter into a loan agreement with SSB Manufacturing Company which lays out the terms and conditions for the loan. Once the documents are executed, funds are eligible to be disbursed on a reimbursement basis after required documentation verifying expenditures are submitted. The HRA will also be required to submit a Minnesota Investment Fund Progress Report each year during the grant period or until the project is complete, whichever is later. The HRA is also required to submit a Minnesota Business Assistance Form to DEED’s Office of Economic Analysis for this project, as it does for additional business subsidy projects it has been involved with. Staff is requesting a recommendation to the HRA for approval of the Grant Contract and Loan Agreement. Motion Comms. Smith/Gillen moved to recommend approval to the HRA. Motion carried unanimously. 4. Review of SSB TIF District Comments Mr.Olson stated that as part of the creation of any new TIF District, the City is required to provide a copy of the proposed TIF Plan for the project to the County and School District at least 30 days in advance of the public hearing at which the approval of the new TIF District is to be considered by the City Council. As the County staff’s memo to the County Board indicated (copy attached), the County was considering its right to reserve some of the tax increment generated by the project for future upgrade to an adjacent County Road . This right is provided to counties under the TIF Statutes if the proposed project receiving TIF assistance will generate traffic that will necessitate the need for road improvements that would otherwise not be needed. The County decided in the end not to exercise this right on the SSB TIF Project, but it is apparent to City staff that the County may exercise this right with proposed TIF projects near Co. Rd. 70 in the future. ISD 194 also provided a comment letter on this proposed TIF District. While ISD 194 supported with reservations the proposed TIF District for SSB Manufacturing, the District did express concerns about the continued increase in traffic volumes on Co. Rd. 70 with continued industrial development along the corridor. The School District also included comments regarding their upcoming levy questions and the impact this TIF project would have on the ability to capture levy revenue from this property. Some of the issues to discuss in the future will include the appropriate percentage of increment to be provided to projects and as well a review of the wage levels of the jobs being created whether there should be a correlation between wage levels and the level of assistance being provided. 5. Director’s Report Mr. Olson reviewed the Director’s Report. This year’s Manufacturers Appreciation event is scheduled for Tuesday, October 6th at Brackett’s Crossing from 4:30 to 6:30 p.m. The City has issued building permits with a total valuation of $129,369,472 through August. This is a 45% increase compared to a total valuation of $88,958,875 for building permits issued through August of 2014. The City has issued commercial and industrial permits with a total valuation of $31,033,000 through August compared to a total valuation of $8,809,000 during the same period in 2014. Staff again this year participated in a National Site Selector Tour o rganized by the Minnesota Marketing Partnership, a public-private partnership working together to promote Minnesota and the local communities. Staff joined representatives from other communities at Dakota Electric Association where Eric Stavriotis from CBR E-Chicago’s Economic Incentives Group was presented with information about Lakeville and our surrounding communities. Hy-Vee has begun construction of their 92,000 square -foot grocery store that includes a sit-down restaurant and a free-standing gas convenience store as well as a separate four-bay automatic car wash. Hy-Vee will also be located in the Spirit of Brandtjen Farm commercial district at the southeast corner of County Road 46 and Pilot Knob Road. Building Inspections issued a building permit for the Angry Inch Brewery and Taproom which is the second tenant to be located in the former Ace Hardware Building on Holyoke Avenue in Downtown Lakeville. A building permit was issued this week for the 3 story, 83 unit Candlewood Suites extended stay hotel project to be located in the southwest quadrant of County Road 70 and I-35. 6. Adjourn Meeting adjourned at 5:00 p.m. Respectfully submitted by Rick Howden, Economic Development Specialist