HomeMy WebLinkAbout05-29-18
CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
May 29, 2018
1. Chair Scherer called the meeting to order at 4:30 p.m. in the Orchard Conference
Room at City Hall.
Members Present: Comms. Collman, Dautel, Emond, Gillen, Matasosky, Scherer,
Seiler, Smith, Starfield, Vlasak
Ex-officio members: Mayor Anderson, City Administrator Miller
Members Absent: Chamber President Roche
Others Present: David Olson, Community & Economic Development Director; Kati
Bachmayer, Economic Development Specialist; Dave Smith, Buddy’s Kitchen, Inc.;
Jason Scheiderman, Scheiderman’s Furniture; Dan Salzer, Scannell Properties
2. Approval of April 24, 2018 Meeting Minutes
Comms. Matasosky/Emond moved to approve the minutes of the April 24 meeting
as presented. Motion carried unanimously.
3. Review of Proposed Land Exchange with Buddy’s Kitchen Inc.
Dave Smith, CEO of Buddy’s Kitchen attended the meeting to share information
about the company’s plans for expansion. Buddy’s Kitchen is an industry leader in
custom frozen food and co-packing. The company expanded into Lakeville in late
2016. Since that time, approximately $3,000,000 in improvements have been made
to the interior of the building. Currently, the Lakeville location has approximately 150
full-time employees.
For the past six months, City Engineering and Environmental Resources staff, along
with staff from the Vermillion River Watershed Management Organization, have
been in discussions with BKI Hamburg Partners LLC regarding a possible land
swap. The City proposes to convey the 1.15 acres of developable land adjacent to
Hamburg Avenue in exchange for 6.54 acres of undevelopable land adjacent to
South Creek owned by BKI. Both parcels were appraised at approximately
$225,000.
Mr. Olson stated that this proposed expansion project would benefit Buddy’s
Kitchen, the City, and the Vermillion Watershed. The City would obtain ownership of
an environmentally sensitive area adjacent to South Creek, a DNR designated Trout
Stream, and in partnership with Vermillion River Watershed could pursue grant
funds from the State of Minnesota to complete stream restoration and improve water
Economic Development Commission Minutes May 29, 2018 Page | 2
quality. The company will be able to expand at their current Lakeville location and
potentially triple its workforce in the coming years.
Comms. Emond/Seiler moved to recommend the proposed land exchange
between the City and BKI Hamburg Partners to the City Council. Motion carried
unanimously.
4. Review of Preliminary Tax Increment Financing application from
Schneiderman’s Furniture Inc. and Scannell Properties, LLC
Jason Schneiderman, President and CEO of Schneiderman’s Furniture and Dan
Salzer, Development Manager for Scannell Properties attended the meeting to
share information about the proposed project, TIF application, and the company’s
plan for the future.
Schneiderman’s Furniture Inc., in cooperation with Scannell Properties LLC as the
proposed project developer, submitted an application for Tax Increment Financing
to assist with the development of a new 104,000 square-foot warehouse. The
warehouse is proposed to be the first project developed in Interstate South
Logistics Park, located at the southwest quadrant of Co. Rd. 70 and Dodd Blvd.
Schneiderman’s currently leases a warehouse in Burnsville and the proposed
project would result in the relocation of 40 full-time jobs to Lakeville with an average
wage level of $17 per hour, along with several part-time positions.
The TIF application has identified a financing gap of $1,109,900 for the project.
Using the Estimated Market Value of $4,160,000, it is estimated this project would
generate between $400,000 and $500,000 in available tax increment. This
increment would be paid out over the next 10-11 years with annual reimbursements
based on a percentage of the actual new tax increment received. The TIF district
would cover the 9 acres of Schneiderman’s (future) plat. Mr. Olson noted that the
public improvements made by Scannell Properties on the site will serve future
buildings and tenants that choose to locate in Interstate South Logistics Park.
EDC members discussed the “but for” analysis, expressed a desire to be proactive
and supportive to the company regarding its hiring goals, sought clarification on the
requirements for a project to be TIF eligible, and inquired about other available
financial tools that could assist with the project costs.
Comms. Starfield/Seiler moved to recommend the preliminary Tax Increment
Financing application from Schneiderman’s Furniture proceed to the HRA Board.
Motion carried unanimously.
5. Director’s Report / Development Update
Mr. Olson reviewed the Director’s Report and highlighted information on the
residential development pace in the City. Residential permits are currently on pace
Economic Development Commission Minutes May 29, 2018 Page | 3
with 2017 numbers and many commercial projects are lining up for building permits.
Several ribbon cutting ceremonies have taken place in May, including three events
in the Spirit of Brandtjen Farm commercial development near Hy-Vee on Pilot Knob
Road. HOBO, Inc. held a groundbreaking ceremony this month to celebration its
upcoming 23,000 square-foot expansion. Upcoming projects include an oral surgery
office building near the Lakeville Area Chamber of Commerce office and a YMCA
daycare opening near County Road 46. The Edison at Avonlea apartment building
will be ready for tenants on July 15.
Adjourn
Meeting adjourned at 5:20 p.m.
Respectively submitted by:
Kati Bachmayer, Economic Development Specialist