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CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
September 22, 2020
1. Chair Scherer cal led the meeting to order at 4:00 p.m. in the Council Chambers.
Members Present: Comms. Christiansen, Collman, Dautel, Emond, Gillen, Matasosky,
Scherer, Seiler, Starfield
Ex-officio Members Present: Mayor Anderson, Chamber President Jech
Members Absent: Comm. Stone
Staff Present: David Olson, Community & Economic Development Director; Kati
Bachmayer, Economic Development Coordinator
2. Approval of August 25, 2020 Meeting Minutes
Comm. Starfield noted that the first item in the August minutes should be updated to
properly reflect that Comm. Seiler conducted the August 25th meeting.
Comms. Starfield / Emond moved to approve the minutes of the August 25 meeting
with the noted amendment. Motion carried unanimously.
3. Review Options for the Marketing of the City-owned Property at Kenwood Trail
and Icenic Way
Mr. Olson stated that in 2015 the City entered into a Joint Powers Agreement (JPA) with
Dakota County for the total acquisition of nine commercial and residential properties
along County Road 50 between Ipava Avenue and Icenic Trail. These properties were
needed for the construction of an expansion of County Road 50 / Kenwood Trail to a
four-land divided highway from the County Road 60 / 185th Street to County Road 9 /
Dodd Boulevard. The cost of the property acquisitions was funded 55% by Dakota
County and 45% by the City of Lakeville. After the completion of the road project, the
City still owns a 2.25-acre parcel at the intersection of Kenwood Trail and the new Icenic
Way backage road. This property was appraised at $785,000 in July 2019 and is zoned
O-R (Office Residential), which is intended to provide a transition between commercial
and residential development.
Mr. Olson said city staff is seeking input from the EDC regarding the City’s two main
options for marketing the property, which include having city staff market the property or
listing the property with a commercial broker. The EDC members discussed the pros
and cons of both options and inquired about the ability to “square off” the property to
make it more desirable to developers. The small triangle piece needed to square off the
parcel is owned by Lakeville Ames Arena. Mr. Olson stated that staff could research that
question. A consensus was formed by EDC members that it was best to use the
expertise of a commercial broker for this type of sale, especially in th e current pandemic
real estate environment, and recommended that proposals be requested from several
different firms.
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Comm. Scherer / Seiler moved to recommend the City retain a commercial broker
through a request for proposals (RFP) process to list for sale the 2.25-acre city-owned
parcel located at Kenwood Trail and Icenic Way. Motion carried unanimously.
4. Update on Round One and Round Two of the Small Business Emergency Grant
Program
Ms. Bachmayer provided updates to the EDC on the City’s two grant programs. The City
has approved 39 businesses from its Round One grant program and is still processing
three applications. Grant funds have been dispersed to 36 of the 39 businesses and the
remaining three grant payments will likely be processed by the end of next week. During
the August meeting, the EDC asked for more information about the total losses
experienced by the business applicants. According to Northland Securities, the City’s
third-party program reviewer, the highest documented loss was approximately
$300,000; three applicants lost between $150-200,000; eight applicants lost between
$100-149,999; ten applicants lost between $50-99,999; and 18 applicants had total
losses under $50,000.
The City’s Round Two grant program opened its application window on September 16
and has received 32 applications so far. The total amount of funding for this program is
up to $400,000; equating to 40 grants worth $10,000 each. Applications are being
accepted through September 30th. The City is actively working with the MN Department
of Employment and Economic Development (DEED) and Dakota County officials to
avoid grant recipient duplications. Both of Lakeville’s grant programs require that
business applicants only receive grant dollars from one entity and are not allowed to
receive grants from the City and the County or State.
Mr. Olson reminded EDC members that all of the CARES Act funding must be spent by
the City of Lakeville by November 15th. He also informed the EDC that the City Council
will be considering a grant program for nonprofit entities during its October 5th meeting.
Mayor Anderson noted that the Council has already received funding requests from 360
Communities, Lakeville Area Chamber of Commerce, Lakeville Convention & Visitors
Bureau, and Fairview Ridges Hospital. Ms. Jech reminded EDC members that 501c6
organizations (like the Lakeville Chamber) have been considered ineligible for every
other COVID-related grant or loan program at the federal, state and local levels.
5. Continued Roundtable Discussion of COVID-19 Impacts on Lakeville Businesses
More discussion was held during this meeting about the local restaurant community and
the concerns regarding impending colder weather combined with indoor dining capacity
restrictions. Comm. Gillen and Seiler shared information about how their businesses
were adapting to the Executive Order guidelines and preparing their facilities for an
extended outdoor dining season in cooler temperatures. Comm. Gillen informed the
group that Hospitality Minnesota has been lobbying Governor Walz to expand indoor
dining to 75% capacity. Mayor Anderson shared with the EDC that he and a group of
metro city mayors participate in regular conference calls with DEED Commissioner
Steve Grove, and this mayors group was advocating for removing the capacity
percentage and instead allowing restaurants to use six-foot distance guidelines to
maximize indoor capacity while still adhering to safety protocols. Members noted that no
Economic Development Commission Minutes September 22, 2020 Page | 3
matter what the restaurant guidelines are, it was important for customers to do their part
by following masking and social distance recommendations. Mayor Anderson also
discussed the importance of revisiting the City’s temporary patio policy to ensure that
our local restaurants are able to maintain their outdoor dining space during colder
months while indoor dining continues to be reduced. EDC members encouraged the
City to begin conversations with the Metropolitan Council regarding the temporary delay
of additional Sewer Availability Charge (SAC) fees for temporary patio areas, as that
policy is set to expire at the end of the year. If reduced capacity restrictions remain in
place, it will be crucial for the Metropolitan Council to change the method used to
calculate these SAC charges in order to accurately reflect the usable dining space.
6. Director’s Report
Mr. Olson informed EDC members that building permit numbers are on pace for another
record year. The city took in $301 million in total building permit valuation in 2019 and is
at $205,927,570 through August 2020. The City Council proclaimed October 1-7, 2020
Lakeville Manufacturers Week. This annual proclamation coincide s with Minnesota
Manufacturing Week and celebrates the City’s manufacturing businesses that provide a
significant number of jobs and tax base to our community. A manufacturing appreciation
event is scheduled for October 9th.
Adjourn
Meeting adjourned at 5:25 p.m.
Respectively submitted by:
Kati Bachmayer, Economic Development Coordinator