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HomeMy WebLinkAbout06-27-17 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES June 27, 2017 1. Chair Scherer called the meeting to order at 4:32 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Scherer, Matasosky, Vlasak, Collman, Emond, Seiler, Starfield Ex-officio members: City Administrator Miller, Mayor Doug Anderson Members Absent: Comms. Gillen, Longie, Ex-officio Tim Roche Others Present: David Olson, Community & Economic Development Director; Kati Bachmayer, Economic Development Specialist; and Penny Brevig, Recording Secretary 2. Introduction of New Economic Development specialist Mr. Olson introduced our new Economic Development Specialist, Kati Bachmayer. 3. Approval of April 25, 2017 meeting minutes Comms. Emond/Seiler moved to approve the minutes of the April 25, 2017 meeting as presented. Motion carried unanimously. 4. Overview of Current Tax Increment Financing Policy Mr. Olson reviewed the current business Subsidy and Tax Increment Financing (TIF) policies and reviewed the industrial manufacturing, warehouse and distribution center type projects that received TIF assistance since 2014. Mr. Olson stated that one of the questions that has been raised is whether the level of assistance provided should be tied to the proposed wage levels of the jobs being created. He mentioned that Shakopee revised its’ Business Subsidy Policy in 2016. Mr. Olson asked the EDC to provide staff with input on any proposed modifications to the City’s current Business Subsidy and Tax Increment Financing policies. Mayor Anderson stated that the City Council is looking for the following: 1. Have we accomplished the goals that we wanted to accomplish 2. What should our policy be and is it right for the future Mayor Anderson is not sure if we would need a third party to prepare the survey. He feels the EDC’s perspective would be very helpful. Economic Development Commission Minutes June 27, 2017 Page | 2 Discussion points:  Minimum wage policy and whether we are comfortable with using the State of Minnesota wage requirement  The City incents what you want to come here. There is a limit to what the City can do. We need to reserve some of our incentives  We need to see a retention plan and a relocation plan  Demographics of the Lakeville unemployed  We may be at a competitive disadvantage if we raise the wage limit  Need to look at what new tax base is being created  Sometimes there are unintended consequences, such as not being able to get skilled employees  We need to be sure that we can supply the skilled workers for the company  Need to identify what type of jobs we want in Lakeville and recruit  Don’t be reactive, be proactive with knowing what we want to attract to Lakeville  Lack of workforce and how we can improve this  Is the policy we have in place now for TIF serving its’ purpose  Can we keep what we have and then at least be able to say yes we have incentives for the businesses  Need to do our research and identify our competitive advantage  Prepare a survey for the local businesses and ask them what their priorities and struggles are  If we used a marketing company there would be a cost associated with the survey  Downtown Development Guide needs to be revisited within the next year  Marketing is key  Lakeville does not have a marketing problem  What do we want to focus our attention on  Do we want to attract more industrial, office, commercial, retail  Manufacturers are trying to decide to train people or to automate more  Can and/or should we use TIF for affordable housing  Need to decide if we want to leave the TIF policy flexible or specific Dan Vlasak excused himself from the meeting at 5:15 p.m. Mr. Olson stated that he appreciated the EDC’s input tonight and will put the Business th subsidy and Tax Increment Financing policies discussion on the July 25 EDC meeting also and they will continue their discussion regarding any proposed modifications. 5. Director’s Report / Development Update Mr. Olson reviewed the Director’s Report including the latest building permit report and updated the EDC members on the development projects that are currently under construction, along with recent Zoning Ordinance amendments. The next EDC meeting is scheduled for July 25, 2017. Economic Development Commission Minutes June 27, 2017 Page | 3 Adjourn Meeting adjourned at 5:45 p.m. Respectively submitted by: Penny Brevig, Recording Secretary