Loading...
HomeMy WebLinkAbout2. EDC minutes 1.26.21 DRAFT CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES January 26, 2021 1. Vice Chair Starfield called the meeting to order at 4:04 p.m. via teleconference. Members Present: Comms. Christiansen, Collman, Emond, Gillen, Matasosky, Seiler, Starfield, Stone Ex-officio Members Present: Mayor Anderson, City Administrator Miller, Chamber President Jech Guests Present: Dan Licht, The Planning Company; Ryan Sailer, Timberland Partners; Bjorn Strommen, Timberland Partners; Eric Thom, Continental Properties; Benjamin Lang, Continental Properties; Brian Rissky, Continental Properties; Jonathan Adam, Silverstone Realty & Development Members Absent: Comm. Dautel, Scherer Staff Present: David Olson, Community & Economic Development Director; Kati Bachmayer, Economic Development Coordinator; Daryl Morey, Planning Director; Jerilyn Erickson, Finance Director 2. Approval of December 8, 2020 Meeting Minutes Comms. Matasosky / Seiler moved to approve the minutes of the December 8 meeting. Motion carried unanimously. 3. Review of Two Proposed Multi-family Housing Projects on Properties Currently Guided and Zoned for Commercial Development Mr. Olson informed the EDC that the City has received requests from two separate developers to amend the City’s Comprehensive Plan for two properties west of I-35. The request is to change the current Commercial designation for both sites to High Density Residential. The first site is an 18.7-acre site located at the intersection of 162nd Street (CSAH 46) and Buckhill Rd. The second site is a 19.6-acre site on 210th Street (CSAH 70) west of Keokuk Ave and south of Emagine Theatre. It has been requested that the EDC review these proposals because they involve changing the land use designation of two fairly large commercial properties to high density residential. The Planning Commission will be reviewing this information at a work session on February 4th and the City Council will be discussing it at a work session on February 22nd. a. Mr. Olson introduced Dan Licht with The Planning Company to provide an overview of the 2040 Comprehensive Plan and how the two proposed projects would impact the City and its housing goals. Mr. Licht discussed the 2016 Multiple Family Housing Study, which was conducted to identify commercial properties for possible multiple family development and included four goals: life cycle, market support, employment, attainability. The two proposed sites were both identified in the study as opportunities for multi-family development but remained guided for commercial land use in the 2040 Comprehensive Plan. Mr. Economic Development Commission Minutes January 26, 2021 Page | 2 Licht provided a comparison of multi-family housing comprehensive plan land use to communities of similar character and development pattern such as Blaine, Burnsville, Plymouth, and Woodbury. Eden Prairie and Maple Grove were also included in the comparison because the City Council and Planning Commission had the opportunity to tour multi-family developments in those cities to look at land use changes and evaluate how this type of housing would fit into the character of Lakeville. If both of the projects were approved, it would increase the allocation of high-density residential land use to 1.7% of the total area of the City. The Metropolitan Council establishes a housing policy across the metro area that includes projections on the needs for affordable housing that is achievable based on the average median income for the region. The number of dwelling units the Metropolitan Council identified for Lakeville’s affordable housing needs in 2021- 2030 is 1,414. Current Zoning Ordinance incentives available to encourage affordable housing include exceptions to building exterior material requirements, reduction in off-street parking requirements, and reduction in landscaping requirements. If a developer uses the aforementioned incentives, the project is required to commit to provide regional affordable housing rent limits for 10 years. The Authentix development intends to use these incentives and will meet 20% of Lakeville’s affordable dwelling unit goal. There have been a number of multi- family projects approved in the City (or in process) since 2016, bringing the multi- family dwelling unit total to 1,140 (4.7% of the overall housing supply). The Sundance project is proposing 188 multi-family units and 12 single family units, and Authentix is proposing 288 multi-family units. Any amendment to the Comprehensive Plan and Zoning Ordinance would require a public hearing at the Planning Commission and include the opportunity for public comment. b. Ryan Sailer and Bjorn Strommen from Timberland Partners presented information to the EDC about the proposed Sundance development project. Timberland Partners typically develops, owns and manages their projects and doesn’t participate in any third-party management. The site is embedded in a well-established single-family neighborhood near I-35. A 12-unit single family rental development has been included in the proposed project to act as a buffer between the existing neighborhood and multi-family development. All townhome- style apartments in this project will have direct-access entry garages. Timberland recommends rezoning this site because this commercial land has sat vacant on the market for over 20 years, no commercial development has occurred through three real estate cycles, recent changes in consumer behaviors and retail demand warrant this type of development on this site, and it is one of the only remaining sites near transit. The company also indicates that this type of development will be attractive to millennials and help them to get established in the City as they work toward home ownership. Projecting the development cost to be $55 million and estimate it will generate $550,000 in tax revenue. The majority of the rents will be at or below 80% Area Median Income. Timberland Partners is not requesting public financing – the Sundance project would be completely privately funded. c. Eric Thom from Continental Properties presented information to the EDC about the proposed Authentix development project. Continental develops, owns and manages all of their apartment communities and don’t participate in any third - party management contracts. Mr. Thom said employment recovery is slow but Economic Development Commission Minutes January 26, 2021 Page | 3 moving in the right direction and the upcoming Amazon project makes this location very desirable. The lease rate at their Springs at Lakeville project has been strong and is currently 60% complete. The Authentix project is proposing 288 units in 12 residential buildings. Continental is proposing the rezoning of this property because retail market conditions across the country have softened during the pandemic. Mr. Thom said the Authentix project provides a pathway for attainable housing through construction savings and finishes. The rent projections will achieve 80% Area Median Income rates. The location was described as difficult for commercial development due to a large wetland located in the southern portion of the site. Continental’s design accounts for the wetland area and proposes that a majority of the residential buildings will be constructed on the northern portion of the site. Continental is currently conducting a traffic study regarding the proposed access points. Following the presentations, the meeting was opened for questions and discussion. Comm Matasosky asked if the lease rate mentioned by Continental was being reflected in all of Lakeville’s new multi-family projects and Mr. Olson confirmed that it was and the new projects in the City have been leasing up quickly. Mayor Anderson asked about the three-quarter access proposed into the Authentix site and thought it made sense to make that a full access based on the location and lack of development to the west. Mr. Olson said Dakota County requires one-half mile spacing for full access and the proposed driveway entry is too close to the I-35 exit. Mr. Thom told the EDC that the Authentix site is proposed to have three access points, one of which would be the construction of a street connection from the site to Keokuk Avenue. If the Authentix project rezoning is approved, Comm Gillen recommended changing the zoning on the neighboring property to the west to be medium density residential (versus its current high-density residential designation). Comm Matasosky made a motion to approve the rezoning requests for both projects (Sundance and Authentix) because of their close proximity to I-35 and CSAH 70. Comm Seiler seconded the motion. A roll call vote was taken and the motion carried. Ayes - Christiansen, Collman, Gillen, Matasosky, Seiler, Starfield, Stone. Abstain - Emond 4. Presentation of 2020 Economic Development Annual Report Mr. Olson presented the 2020 Economic Development Annual Report. The City awarded over $1 million to small businesses and nonprofit organizations in response to the COVID-19 pandemic. The City Council also approved a temporary outdoor dining policy and reduced liquor license fees for Lakeville businesses. Despite the pandemic, Lakeville experienced a record year of development with a record-setting total building permit valuation of $442.3 million, with the largest project being Amazon’s new XL facility valued at $45 million. Institutional investment was also high in 2020, totaling $46.3 million. Lakeville issued 824 residential permits in 2020 and 639 of those were single family houses. Notable 2021 projects include new hangars being constructed at Airlake Airport and two medical office projects bringing Children’s Minnesota and Summit Orthopedics to the City. 5. Update on Small Business Emergency Grant Programs Economic Development Commission Minutes January 26, 2021 Page | 4 Ms. Bachmayer updated the EDC about the City’s latest grant program. Round Three of the Small Business Emergency Grant Program went smoothly, and 50 businesses were awarded $5,000 grants. Ms. Bachmayer informed the group that Dakota County received $8.3 million from the State of Minnesota to fund a fourth grant round. The county is accepting applications online through February 12 at 5:00 p.m. Grants will be awarded by March 15. This grant round includes a priority level system that is designed to provide funding to businesses who 1. Have never received COVID-19 grant funds, 2. Have received less than $15,000 in grant funds, and 3. Have received $15,000 in grant funds but are still in financial need. EDC members were encouraged to spread the word about the Dakota County grant program to help get as many Lakeville businesses as possible to apply. 6. Continued Roundtable Discussion of COVID-29 Impacts on Lakeville Businesses Comm Seiler told the EDC that his restaurant was happy to be reopened for indoor dining and takeout orders remain strong. He mentioned that consumer confidence has been somewhat eroded by the illegal actions of a neighboring business, but his staff continue to implement safety protocols to provide the best possible experience to their customers. Comm Gillen is also pleased with the return to indoor dining and he noted that the customers are enthusiastic about having the ability to go out to eat again. Comm Gillen thanked the City and Lakeville Area Chamber of Commerce for all of the support they have provided during the pandemic. Ms. Jech said the reintroduction of indoor dining has had a positive effect on retail traffic, but hotels are still struggling. The Chamber and CVB are working with these businesses to come up with a marketing campaign to support them and encourage more hotel stays. 7. Director’s Report The Director’s Report included information about Commercial Plastics’ recent impending closure announcement. The WARN notice to the State of Minnesota said 122 employees would start to be laid off in mid-February and continue until plant closure. Several industrial park companies are interested in hiring these individuals and Ms. Jech has connected these Lakeville companies to the State of Minnesota’s Rapid Response Coordinator who is working directly with Commercial Plastics’ HR Manager. Comm Starfield congratulated Mr. Olson on recently being awarded Economic Developer of the Year by the Economic Development Association of Minnesota (EDAM). This award is given to a person who exemplifies excellence in economic development and leadership and who utilizes best practices, collaborative thinking, creativity and a spirit of innovation. Adjourn Meeting adjourned at 5:47 p.m. Respectively submitted by: Kati Bachmayer, Economic Development Coordinator