Loading...
HomeMy WebLinkAbout01-23-01-01 ~ Economic Develo pment Commission Meeting Minutes .January 23, 2007 City of Lakeville Economic Development Commission Meeting Minutes January 23, 2001 6:00 p.m. City Council Chambers Members Present:- Schubert, Miller, Tushie, Pogatchnik, Brantly, Matasosky, Vogel, Ex- Officio member Bornhauser, alternate member Erickson. Members Absent: Emond. Others Present: Arlyn Grossing, Community & Economic Development Director, Ann Flad, Economic Development Coordinator. Visitors: Dave MacGillivary, Paul Steinman and Mikaela Huot of Springsted Public Finance Advisors; Greg Smith and Nancy Smith. 1. Call Meeting to Order. Chair Vogel called the meeting to order at 6:04 p.m. in the City Chambers. 2. Approval of November 28, 2000 Regular Meeting Minutes. Motion 01.01 Comms. Tushie/pogatchnik moved to approve the November 28, 2000 meeting minutes. Motion carried unanimously. • 3. Election of OfFicers Motion 01.02 Comms. Pogatchnik/Matasosky moved to re-elect Bob Vogel as Chair, Jack Matasosky as Vice-Chair and bob Brantly as - Secretary of the Economic Development Commission for 2001. Motion carried unanimously. 4. Incentive Study. Dave MacGillivary, Paul Steinman and .Mikaela Huot of Springsted Public Finance Advisors were present to discuss the incentive study they will be undertaking for the EDC as authorized by the City Council on January 16, 2001. Mr. MacGillivary gave a presentation on Springsted and some of the projects they previously completed. The Commissioners indicated their desire to create unique characteristics in Lakeville, incorporating a balance of unique shopping experiences and big-box retail in order to avoid becoming a replica of other suburbs.. The commissioners felt that the methods used to recruit and incentivize business must therefore be different than those offered by other communities. Mr. Steinman indicated that these are concerns addressed in the creation of market demand when recruiting certain niche businesses. Many • businesses base their location decisions on factors other than financial incentives. Those factors often include the existing labor force, infrastructure, availability of sites, and transportation: Incentives typically make a difference when all other things are considered equal. 1 G:WFIad\ECONDEV\EDC12001mtgs101Jan10123016 min.doc - Economic Development Commission Meeting Minutes January 23, 2001 Mr. MacGillivary indicated that in Lakeville, TIF might remain an option for redevelopment projects and limited non-retail, high tech manufacturing projects. He also noted that communities that use TIF as an incentive are typically doing sb by operating existing districts and face a loss of funds after 2001 due to legislative changes. It was noted that the City Council requested keeping incentive options open in light of the potential legislative restrictions regarding the use of tax increment financing (TIF}. A broad explanation of tax abatement was also provided. Mr. MacGillivary indicated that with tax abatement, each taxing entity (city, county, school district) could authorize the return of a portion of the taxes that it receives from a business. Tax abatement is a modest incentive tool because each taxing authority is limited to a cap of $500,000 annually, however there is great flexibility in the uses of tax abatement. Mr. MacGillivary then suggested the EDC prioritize site-specific development goals. Springsted would then identify which incentive(s) could be offered for each goal and could. also forecast the money that could be generated by each. Specific areas of priority for the EDC were discussed and include: ¦ high-tech manufacturing • office-warehouse ¦ some retail ¦ existing business expansion, and the ¦ development/redevelopment of Heritage Commons and the Historic Fairfield uistnct of Downtown Lakeville: " ` Chair Vogel then moved the discussion to methods of involving businesses in the process. Mr. trussing suggested staff and EDC members visit businesses to determine what impacted their decision to locate in Lakeville. Vogel suggested the Incentives Subcommittee take on the responsibility for working with Springsted on the study and visiting the businesses. 5. Recommendation to City Council to enter into a Grant Agreement with Greg and Nancy smith to provide a $70,000 Community Development Block Grant for the improvement of their two downtown buildings. Ms. Flad reviewed the Downtown Code Improvement Program. Administered by the CDA on behalf of the City of Lakeville, the program's purpose is to achieve the Department of Housing and Urban Development (HUD) objective of eliminating slums and blights. Thus, the City of Lakeville's program provides funds to property-owners that tare making code improvements to their buildings in conjunction with a required exterior improvement project. Information and requests for pre-applications were sent to all business owners and property owners in the downtown Special Service District. • Three business owners provided pre-application information and were all invited to submit full applications, which are to be considered on a first come basis. Greg and Nancy Smith provided the required full application information, which the other two pre- app~icants have not Page 2 of 5 Economic Development Commission Meeting Minutes January 23, 2001 submitted the additional required information. The Smith project proposes to expand the Gregory Smith Dental practice into the neighboring building, formerly the A-1 Driving School building. Funds are being sought by the Smiths to address code improvement issues including electrical, plumbing and foundation work in the A-1 Driving School building, along with installing ADA bathrooms. Additionally, work will be done on the existing dental building and the newly acquired building to bring both exteriors up to the design standards set for in the Historic Fairfield District of Downtown Lakeville Design Guidelines. The Smiths have submitted all required documentation, including detailed drawings and bids for the interior improvements, drawings and estimates for the exterior improvements, evidence that their business meets the City's parking requirements, evidence of sufficient private funds to complete the project, and evidence of taxes paid. A warranty deed for the former A-1 Driving School property was provided, however the County process for recording it will not be complete for several weeks. The grant agreement between the City and the Smiths indicates the Smiths will be • reimbursed for up to $70,000 of code improvements that are indicated in the grant agreement. The code improvement work must adhere to Downtown Code Improvement Program guidelines and requirements set forth in the grant agreement. Additionally, reimbursement will be made once the code improvement portion of the project and the exterior- improvement portion of the project are completed to the satisfaction of the City's Building Official and once all Davis-Bacon wage information is presented. Comm. Miller indicated the EDC has been striving to promote downtown improvements and the Smith's project is a great beginning to the redevelopment of downtown. The Commissioners indicated that the project was a very good use of the $70,000 of CDBG funds. Additionally, it was noted that several banks in Lakeville would continue to offer low-interest loans to people who would like to undertake building improvements downtown. Motion 01.03 Comms. Pogatchnik/Millerrnoved to recommend that the City Council enter into a grant agreement to provide $70,000 of CDBG funds to Greg and Nancy smith, trustees of the Nancy Papatola Smith Living Trust, for the improvement of the trust's two downtown buildings. Tushie abstained. AU others in favor. Motion carried. • 6. Review Labor Force Subcommittee/Chamber of commerce joint meeting with Industrial Businesses regarding Airlake Leadership and the HR Committee. Ms. Flad indicated that the Labor Force Subcommittee met per the EDC's request in order to determine a strategy for implementing leadership in Airlake to undertake the Page3of5 ' Economic Development Commission Meeting Minu[es . January 23, 2001 labor force suggestions. The subcommittee and the Chamber of Commerce then jointly hosted a meeting for Airlake businesses on January 18, 2001 at Ryt-Way Industries. The purpose of the meeting was to determine interest in pursuing labor force strategies, and to determine whether this could be accomplished through the H.R. Committee of the Chamber or through development of a new group. There were over 22 business representatives present, and other businesses indicated their desire to participate in the future. The businesses were receptive to operating under the HR Committee structure, thus the subcommittee will pursue implementing that strategy of implementing leadership in Airlake. The businesses will meet again in early February to determine the structure of the committee and to develop an action plan. 7. Status Update on Park Dedication Fees Mr. Grussing indicated that the City Council approved new park dedication fees at their December 15, 2000 meeting. The fees are now $5,400/acre for commercial property and $3,200 for industrtal property. Mr. Grussing also indicated chat in anticipation of the new rate, the Regans, dba Airlake Development, submitted a check to pay the park dedication fees under the 2000 formula for land not yet platted. The Regans and their attorney met with Council members at a City Council work session. The Regans were • advocating pre-payment based on limited value or the assessor's market value rather than the estimated market value the City of Lakeville uses to determine Park Dedication value. Motion 01.Od" ° " `Comms: Tushie/Miller moved to inform the City Council that the' EDC intended that property owners affected by park dedication changes would have the option to pay their park dedication fees in advance of the new rate's effective date, and therefore the EDC recommends the Council accept payment consistent with rules that were in effect prior to rate's increase. Comm. Matasosky abstained. All others in favor. Motion carried. 8. Letter from United States Postal Service Real Estate Specialist regarding site under consideration for new Lakeville Post Office. Mr. Grussing presented a letter from the U.S. Postal Service indicating that one site was currently under consideration for development of the new postal facility. This site is located at Heritage commons. Commissioners questioned the appropriateness of a bulk postal facility at that site, noting that the volume of large trucks that a bulk facility would require may negatively impact the retail uses at Heritage commons. Motion 01.05 Comms. Tushie/Brantly moved to inform the City Council that the EDC supports the development of a retail postal facility at the Heritage commons site, and that the Council encourage the development of a bulk postal distribution center at an alternate location. Motion carried unanimously. Page 4 of 5 Economic Qevelopment Commission Meeting Minutes January 23, 2001 _ 9. Proposal to hold future EDC meetings off-site. Mr. trussing indicated that the addition to City Hall is under construction. This construction will make the administration conference room unavailable for EDC meetings for the next several months. Off-site locations are being sought for the next few EDC meetings. Appro Development and Miller-Hartwig Insurance are both available. 10. Appointments to the High-Tech Subcommittee. At the September 26; 2000 EDC meeting, the commission recommended that the EDC Chair appoint two people to serve on the newly formed High Tech Subcommittee along with Telecommunications Commission members Robin Selvig and Dough Thompson. Chair Vogel appointed Comms. Miller and Brantly to be the EDC representatives on the High Tech Subcommittee. 11. AdJourn. Meeting adjourned at 8:47 p.m. • Respectfully submitted by: Attested to: ; T ~~U/ Ann Fla ecording Secretary R.T. Brantly, Secretary. Page 5 of 5