HomeMy WebLinkAboutItem 02
CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
July 31, 2018
1. Chair Scherer called the meeting to order at 4:00 p.m. in the Marion Conference
Room at City Hall.
Members Present: Comms. Collman, Emond, Gillen, Matasosky, Scherer,
Starfield, Vlasak
Ex-officio members: City Administrator Miller
Members Absent: Comms. Dautel, Seiler, Smith, Mayor Anderson, Chamber
President Roche
Others Present: David Olson, Community & Economic Development Director; Kati
Bachmayer, Economic Development Specialist
Prior to discussing agenda item 2, Chairman Scherer proposed changing the regular
EDC meeting time to 4 p.m., instead of the current start time of 4:30 p.m. All
commissioners in attendance agreed with the time change, so future EDC meetings
will begin at 4 p.m.
2. Approval of May 29, 2018 Meeting Minutes
Comms. Starfield/Matasosky moved to approve the minutes of the May 29
meeting as presented. Motion carried unanimously.
3. Review of Preliminary Tax Increment Financing application from
Schneiderman’s Furniture Inc. and Scannell Properties, LLC.
At the May EDC meeting, Jason Schneiderman, President and CEO of
Schneiderman’s Furniture and Dan Salzer, Development Manager for Scannell
Properties shared information about the proposed Schneiderman’s Distribution
Center and TIF application. Since that meeting, JAS Warehouse Property, LLC and
Schneiderman’s Furniture Inc., in cooperation with Scannell Properties LLC, have
made the decision to increase the proposed building size from 106,000 square-feet
to 130,000 square-feet. The additional 24,000 square-feet represents the future
expansion space that was previously shown on the project plans and equates to a
higher tax value and captured increment. Mr. Olson distributed copies of the new
site plan and an updated version of the ‘City of Lakeville TIF Funded Projects’
attachment that was included with the emailed packet.
This distribution center will be the first project developed in Interstate South
Logistics Park and would serve the four Schneiderman’s stores in the Twin Cities,
Economic Development Commission Minutes July 31, 2018 Page | 2
as well as its stores in Duluth and Rochester. The project would result in 40 new
full-time jobs in Lakeville with an average wage of $17 per hour, along with several
part-time positions, which must be maintained for two years after the agreement
date. The City Council has scheduled a public hearing on August 6 to consider
creating a new TIF District for the proposed project. Dakota County and ISD 194
were notified of the proposed TIF District on July 6 and have 30 days to provide
comments.
The Schneiderman’s project would be an impetus for extensive infrastructure
improvements, paid for by the developer, including a new street into Interstate
South Logistics Park, as well as bringing water and sewer connections to the
property. The County Assessor provided an estimated market value of $6.5 million
upon completion of the 130,000 square-foot building and infrastructure
improvements. It is recommended to provide 90% of the available new tax
increment toward the eligible project costs, with a maximum amount of $732,637 in
financing assistance paid to JAS and Schneiderman Furniture from 2020 to 2028 on
an annual pay-as-you-go basis. It was noted that TIF Districts only capture new tax
increment generated toward city, county and school taxes.
Mr. Olson stated that Scannell Properties has also proposed construction of an
additional 150,000 square-foot building in the Interstate South Logistics Park, to be
built north of the Schneiderman’s distribution center. This second building would not
be part of the TIF application.
Comms. Emond/Starfield moved to recommend approval to the City Council and
HRA Board on the proposed terms and conditions of the Tax Increment Financing
Agreement with JAS Warehouse Property LLC and Schneiderman Furniture Inc.
Motion carried unanimously.
4. Director’s Report / Development Update
Mr. Olson reviewed the Director’s Report and highlighted information on the
enduring rapid pace of residential development in the City. Lakeville continues to be
the top issuer of residential permits in the Twin Cities metro through July.
Several commercial projects have picked up building permits, including Bethlehem
Lutheran Church (new church facility valued at $3.2M), KingsPath Senior Housing
(55 market-rate units valued at $8.8M), Compeer Financial (valued at $4.7M),
Hampton Inn & Suites (valued at $7M) and more. Multi-family construction projects
continue to make progress, with 266 units ready to lease by the end of this year.
The Interstate PowerSystems “Spotlight on Business” video was played at the end of
the meeting. The next Spotlight will be on FedEx Freight.
Adjourn
Meeting adjourned at 4:51 p.m.
Economic Development Commission Minutes July 31, 2018 Page | 3
Respectively submitted by:
Kati Bachmayer, Economic Development Specialist