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HomeMy WebLinkAbout07-25-17 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES July 25, 2017 1. Chair Scherer called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Scherer, Gillen, Matasosky, Vlasak, Collman, Longie, Seiler, Smith, Starfield Ex-officio members: City Administrator Miller, Mayor Anderson, Tim Roche Members Absent: Comms. Emond, Rajavuori Others Present: David Olson, Community & Economic Development Director and Kati Bachmayer, Economic Development Specialist 2. Approval of June 27, 2017 meeting minutes Comms. Seiler/Matasosky moved to approve the minutes of the June 27, 2017 meeting as presented. Motion carried unanimously. 3. Continued Discussion of the City’s Business Subsidy Policy th Mr. Olson reviewed the discussion from the June 27 meeting about the City’s Business Subsidy and Tax Increment Financing (TIF) policy. Mr. Olson also highlighted the data staff pulled together on largest employers, employment by sector, average individual and household income information for Lakeville and comparable cities in the Metro Area, and current demand and average wage levels for certain job classifications in the Metro Area. EDC Member Seiler developed an Excel Spreadsheet that allows projects to be scored based on the degree of public benefit under the categories listed in the current City Business Subsidy Policy. Mr. Olson asked the EDC to provide staff with input on any proposed modifications to the City’s current Business Subsidy policy and for feedback on the potential new evaluation tool. Review of Mr. Seiler’s spreadsheet and discussion about the Business Subsidy policy followed. Discussion points:  What percentage of incentive should the City be using on TIF projects? Should the percentage be connected to certain items like higher wages or number of jobs?  Should projects be reviewed during the incentive period and post-incentive to fully measure the benefit and impact the project had on the community? Economic Development Commission Minutes July 25, 2017 Page | 2  Mr. Scherer provided the EDC with an article that demonstrated how ROI was measured on TIF projects in Denver, Colorado. This could be used to inform the City’s measurements.  It was reiterated that TIF districts are not grants. TIF projects allow the business’ money to be reinvested over a period of years and any project approved by the City has met the “But/For” test that means a project could not occur without City assistance.  Members were supportive of using a scoring system like the one Mr. Seiler put together, in addition to current methods. This type of document will create a litmus test that can help guide City Council decisions in the future.  EDC members voted unanimously to remove from the Business Subsidy Policy 3.02, Item 2.c.v which allows funding for “Projects that result in the development of affordable senior or workforce housing.” Comm. Scherer and Vlasak excused themselves from the meeting at 5:22 p.m. Vice Chair Starfield took over the meeting. Mr. Olson said staff will bring the revised Business Subsidy and Tax Increment Financing nd policy, based on this evening’s discussion, to the August 22 meeting. Mr. Miller said that staff will create a menu of additional potential changes, based on this evening’s discussion, and bring those items to the August meeting as well. EDC members will be able to finalize decisions on any changes to the policy next month. 4. Discussion of 2017 Manufacturers Week Events Ms. Bachmayer informed the EDC members that MN Manufacturing Week will take place October 1-7, 2017. The City of Lakeville has reserved a meeting/reception room at the th Holiday Inn & Suites on Thursday, October 5 to host the Annual Manufacturing Appreciation Event from 4:30-7:00pm, in partnership with the Lakeville Area Chamber of Commerce. During a planning meeting, it was proposed that this year’s event have a “workforce development” theme, because of the importance of that topic to our local manufacturers. Feedback was requested about the theme and ideas for the event. EDC members were very supportive of the workforce theme. Ideas presented include:  A keynote speaker who has creative ways of recruiting workers.  A panel discussion before the event that would feature area manufacturers who can share workforce best practices.  Create an opportunity to share what is being done currently in Lakeville to assist with workforce issues.  Host a job fair in connection with the event. 5. Director’s Report / Development Update Economic Development Commission Minutes July 25, 2017 Page | 3 Mr. Olson reviewed the Director’s Report and highlighted the upcoming Metropolitan Airports Commission (MAC) public hearing on the Long Term Comprehensive Plan for th Airlake Airport. The public information meeting is August 9 at 6:00 p.m. in the City Hall Council Chambers and EDC members were encouraged to attend. Mr. Olson recognized Maynard Johnson, who recently passed away. Mr. Johnson was one of the principals that planned and began development of Airlake Airport and Airlake Industrial Park and was also involved in the start of the Pan-O-Prog Community Celebration. It has been recommended to staff that Mr. Johnson be added to Pioneer Plaza in recognition for all he did for the City of Lakeville. Mr. Matasosky volunteered to nominate Mr. Johnson for this honor. The next EDC meeting is scheduled for August 22, 2017. Adjourn Meeting adjourned at 6:00 p.m. Respectively submitted by: Kati Bachmayer, Economic Development Specialist