HomeMy WebLinkAbout02-23-16
CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
February 23, 2016
1.
Vice Chair Longie called the meeting to order at 4:30 p.m. in the Marion Conference
Room at City Hall.
Members Present:
Comms. Longie, Collman, Matasosky, Scherer, Vlasak, Rajavouri,
Gillen
ex-officio members: City Administrator Miller.
Members Absent:
Comms. Emond, Starfield, Smith
ex-officio members: Chamber President Roche, Mayor Little
Others Present:
David Olson, Community & Economic Development Director; Rick
Howden, Economic Development Specialist.
2. Approval of January 26, 2016 meeting minutes
Comms. Matasosky/Scherer
moved to approve the minutes of the January 26, 2016
.Motion carried unanimously
meeting as presented .
3. Review of Post / MOM Brands Tax Abatement and DEED Minnesota Investment
Fund Loan Agreements
Mr. Olson explained that City and State of Minnesota staff have been working with Post
Consumer Brands / MOM Brands staff for a number of months to finalize the agreements
for the proposed State funded and City funded incentives that were offered last year to
retain the Post Cereal Division Headquarters in Lakeville.
The Minnesota Department of Employment and Economic Development (DEED) has
awarded the City of Lakeville with a grant in the amount of $750,000 to assist with the
retention of employees at MOM Brands Company, LLC, a subsidiary of Post Holdings Inc.
Assistance from DEED’s Minnesota Investment Fund (MIF) will be provided to MOM
Brands in the form of a forgivable loan from the City.
The City, DEED and MOM Brands have discussed and reached agreement on the
language for the documents requiring approval before assistance will be obtained. The
documents include a Grant Contract between DEED and the City and a Loan Agreement
between the City and MOM Brands. Additionally, MOM Brands will submit a Promissory
Note and Corporate Guaranty.
The terms of the agreement include job and wage goals which are: retention of 250 jobs
paying a minimum hourly wage of $18.48 excluding benefits for a period of two years. If
the job and wage goals are met by May 4, 2017, the loan will be forgiven. If the job and
wage goals are not met by that date, the company will be required to repay a pro rata
share of the loan plus interest at a rate of 3.25%. In addition to the job and wage goals,
MOM Brands Company, LLC agrees to continue operations in the City of Lakeville
through May 4, 2020.
In addition to the DEED’s proposed job retention incentive, the City proposed an incentive
of $375,000 to be provided through Tax Abatement. The terms of the City’s incentive are
similar to DEED’s incentive. The City’s Tax Abatement Agreement proposes to provide
the $375,000 job retention after the 250 jobs have been retained by Post for one year
which will be May 4, 2016. Similar to the DEED requirements, the 250 jobs have to be
retained a minimum of two years and the Post / MOM Brands has to continue their
operations in Lakeville for a minimum of five years or until 2020.
The properties owned by Post / MOM Brands are scheduled to be in a Tax Increment
Financing (TIF) District until December 31, 2022 unless the City elects to de-certify the
TIF District earlier. Staff is recommending an interfund loan of $375,000 from the City’s
General Fund. When this project was initially discussed last year, it was suggested that
the Liquor Fund be used for the interfund loan. However since then the planning of the
construction of a fourth liquor store near Keokuk Avenue and Co. Rd. 70 has advanced
and it is recommended that the current balance of the Liquor Fund be retained for that
purpose.
Because the Tax Abatement funds will start to be generated for 7 years, it is
recommended that interest accrue during this period. At their work session last evening,
the City Council decided on a 3.5% interest rate.
Comms. Matasosky/Collman
moved to recommend approval of the DEED Minnesota
Investment Fund Loan Agreement and the Tax Abatement Agreement to the City Council.
Motion carried unanimously.
4. Review of County Road 50 and County Road 5 Improvement Projects
Mr. Olson provided a verbal update on the County Road 50 and County Road 5
Improvement Projects which will be impacting existing commercial areas.
5. Director’s Report
Mr. Olson reviewed the Director’s Report.
If you have not already, please RSVP for the annual Board and Commission Appreciation
th
Event at 6:00 p.m. at the Lakeville Area Art Center on Tuesday, March 15.
The City was approached by the Metropolitan Airports Commission (MAC) about the
possible annexation of the Airport several months ago. The City Council authorized staff
to explore this issue further with Township and MAC officials. The one article summarizes
th
the Eureka Township discussion that took place at their February 8 meeting.
The Planning Commission will be considering several zoning ordinance amendments at a
rd
public hearing on March 3. Included in these amendments is a change that would
reduce the rate of change for messages from 60 seconds to 30 seconds for electronic
message board signs, and a change to the sign ordinance for businesses close to the I-35
corridor that would allow wall signs on building elevations that face the freeway. This
change would allow the Candlewood Suites hotel currently under construction to have
wall signage facing I-35 whereas the current ordinance does not.
Staff continues to receive inquiries from private developers interested in a variety of types
of multi-family apartment developments. The types of projects range from market rate, to
affordable senior apartments, to affordable workforce apartment development. Some of
these proposed projects would require changes to current zoning ordinance requirements
or zoning designations. In addition, several developers are inquiring about options for
housing tax credits and/or tax increment financing to make their projects affordable.
These issues may result in the need for a joint meeting of the EDC, Planning Commission
and City Council in the next few months.
Tim Roche and the Lakeville Area Chamber of Commerce have facilitated several
meetings with Metro Transit, Dakota County and a number of the larger businesses in the
Industrial Park to discuss the possibility of providing a shuttle van or small bus to transport
workers from the Apple Valley Transit Station to the Industrial Park. Staff will provide
updates on this possible service as the discussions progress.
6. Adjourn
Meeting adjourned at 6:12 p.m.
Respectfully submitted by
Rick Howden, Economic Development Specialist