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HomeMy WebLinkAbout11-28-00-00 City of Lakeville Economic Development Commission Meeting Minutes November 28, 2000, 6:00 p.m. City Hall Administration Conference Room Members Present: Schubert, Miller, Tushie, Pogatchnik, Detjen, Brantly, Matasosky, Emond, Vogel, Ex-Officio member Bornhauser, alternate member Erickson. Members Absent: None. Staff Present: Arlyn Grussing, Community & Economic Development Director, Ann Flad, Economic Development Coordinator, Robert Erickson, City Administrator. 1. Call Meeting to Order. Chair Vogel called the meeting to order at 6:06 p.m. in the City Hall Administration Conference Room. 2. Approval of October 24, 2000 Regular Meeting Minutes. Comm. Matasosky indicated that he would like the first sentence in item three, paragraph five stricken from the minutes as he did not approve of the fees as stated. ~otion 00.35 Comms. Erickson/Miller moved to approve the October 24, 2000 meeting minutes with the first sentence in item three, paragraph five stricken from the minutes. Motion carried unanimously. 3. Review Park Dedication Fees Subcommittee recommendation. Mr. Grussing reported that the Park Dedication Subcommittee met on November 20, 2000 and recommended to raise park dedication fees to $3,500 for industrial properties and $4,800 for commercial properties. EDC Comm. Tushie, a member of the subcommittee, also suggested to the Park Dedication Subcommittee that 25% of any increased residential park dedication fees be reserved for the Corridor and Gateway projects in the future. The EDC is asked to make a recommendation regarding park dedication fees for consideration by the City Council on November 18, 2000. A copy of the EDC's recommendation will also be given to the Parks Advisory Committee for review at their December 13, 2000 meeting. Mr. Grussing indicated that he, City Administrator Erickson, and Economic Development Coordinator Flad discussed the proposed park dedication fee increase with Airlake Development, Inc. representatives Patrick Regan, Sean Regan, and Mike Regan, along with Stan Palmer of Cerron Commercial Properties and Jack Matasosky of Appro Development per the EDC's request from the October 24, 2000 meeting. It was explained that while park dedication fees would increase, the EDC would take into consideration a rrequest from ~ake Development as to the level of increase that they would deem appropriate. 2000, November 28 1 G:1AFIad1ECONDEVIEDC\2000mtgs\001128 mtg\min 001128.doc ~Grussing handed out a letter addressed to Chair Vogel from Pat Regan on behalf of ke landowner Airlake Development, Inc. Comm. Matasosky added that Pat Regan regretted he was unable to be present to discuss the concerns contained in the letter. In the letter, Airlake Development, Inc. requested the park dedication fees remain at their current level. Airlake Development believes that an increase in fees would make the development of Airlake land more costly and thus less competitive with other communities. The letter also indicated that if the fees were increased, Airlake Development, Inc. may pay the park dedication fees on all of the land they own at the current rate before any increase would take effect. Comm.'s Tushie and Vogel, who represented the EDC on the Park Dedication Subcommittee, indicated that the following impacted their recommendation 1.) Commitment to the Corridor and Gateway plan must not be lost once the park dedication fee is determined; and 2.) Recognition that businesses and their employees do benefit from the Park system in Lakeville, and 3.) Fostering a cooperative relationship with the Parks Advisory Commission is very important to the long term success of EDC efforts. Discussion ensued about Airlake's competitiveness based on all applicable development fees and not just park dedication fees. The EDC discussed whether increasing park dedication fees would benefit the implementation of Corridor and Gateway projects. City Administrator Erickson indicated there is a proposed commercial project at County Road 46 and Cedar where the Corridor and way study proposed a serpentine wall as a gateway monument. While the sign itself y not be funded by park dedication fees, it is believed that the landscaping, benches and .lighting that are designed to create open space linear park amenities may be funded in this way. A relationship must be forged with the Parks Advisory Commission in order#o promote understanding the Corridor and Gateway projects as open space linear parKamenities. Discussion also ensued regarding the cost to fully implement the Corridor and Gateway Plan. It was speculated that the cost would be $3.5-$10 million. Comm. Emond asked what other alternatives there would be to fund Corridor and Gateway projects. City Administrator Erickson responded that a bond referendum could be held in order to obtain funds to seed Corridor and Gateway projects. The EDC also discussed the benefits property owners and businesses in Airlake receive from the parks system. Many Airlake Park businesses have softball teams that play in Lakeville leagues. In addition, much of the Parks Department's budget goes toward the trail system. One trail will ultimately run along side South Creek through Airlake Park. City Administrator Erickson has also suggested that Airlake Development donate outlots on which "Airlake" monument signage they have been requesting could be located. Chair Vogel suggested that the EDC had two options regarding this issue: 1.) take no action; and 2.) provide a recommendation and rationale for it. The Park Dedication Subcommittee recommended $3,500 as a compromise between the Parks Advisory Commission's originally recommended $4,000 and the $3,000 that was under discussion at the October 24, 2000 meeting. 2000, November 28 2 G:1AFIad\ECONDEVIEDC12000mtys\001128 mtg\min 001128.doc art was handed out by Mr. trussing depicting the assessor's market value per square foot for parcels in Airlake Park. The parcels with lower assessor's market values do not have improvements. The parcels with higher assessor's market values have been platted and all fees have been paid. Comm. Matasosky reiterated that raising the fees impacts the bottom line of developers and that he must abstain from voting as his firm is a land owner in Airlake Park. Administrator Erickson reminded the EDC that the park dedication fee was lowered in 1992 in order to assist the financial viability of Airlake Park's development when Airlake Park was coming out of receivership. Using the pre-1992 park dedication fee of $2,500 and increasing it 3% annually the EDC arrived at the figure of $3,167. This is the rate the park dedication fee would be at today had it not been reduced and held steady since 1992. Comm. Tushie suggested the EDC change the recommendation for the commercial park dedication fee. Discussion ensued on what the market value for commercial property in Lakeville is. It was concluded that $2.50 per square foot is the low end of the range of commercial market values. Comm. Pogatchnick suggested using the low end of the range at $2.50 mulitplied by 5% to arrive at a flat fee of $5445/acre for all commercial property. It was concluded that these figures would be rounded to $5,400/acre for commercial property and $3,200/acre for industrial property. ~otion 00.36 Comms. Tushie/Brantly moved that the City Council increase park dedication fees to $5,400/acre for commercial property and $3,200/acre for industrial property. Comm.. Matasosky abstained, all others in favor. Motion carried. 4. Review Labor Force Subcommittee Recommendation Ms. Flad indicated that the Labor Force Subcommittee met on Thursday, November 9, 2000 to discuss the Labor Force Focus Group Report. The subcommittee reviewed the report and recommended 1.) To develop leadership in Airlake to implement labor force recruitment strategies, 2.) To market Lakeville and Airlake Park to heighten awareness and recruit employees, and 3.) To support individual business's recruitment efforts. The subcommittee was specifically interested in continued exploration of advertising Airlake Park and a job hotline on cable channels. The EDC reviewed the subcommittee's recommendations and discussed the need for businesses to take an active role in implementing labor force recruitment strategies. Without the businesses' active involvement, it was felt that any strategy implemented would not succeed. Comm. Bornhauser also discussed the Chamber of Commerce's Human Resource Network that could potentially be tapped to implement these initiatives, and Nation-Job, a Chamber of Commerce web site that is available to businesses for advertising their job openings. • 2000, November 28 3 G:\AFlad\ECONDEV~EDC\2000mtgs5001128 mtg\min 001128.doc t Administrator Erickson distributed a memo from Jeff Leuders, Cable Coordinator, ating that the City's Cable TV Franchise Agreement allows the City to run up to 1,500 -second commercials annually on a variety of cable channels. This option may be used to advertise Airlake Park and the proposed job hotline or web site. Motion 00.37 Comms. Matasosky/Tushie moved to reconvene the Labor Force Subcommittee to create a plan for developing leadership in Airlake Park that will be responsible for marketing Lakeville and Airlake Park to potential employees. Motion carried unanimously. 5. Update on Community Development Block Grant Funds. Mr. Grussing Indicated that the City Council approved reprogramming $70,000 of 2000 CDBG funds for a downtown code improvement project and a 2000 Subgrantee Agreement with Dakota County Community Development Agency (CDA) in order to implement the downtown code improvement project. A letter has gone out to all property owners and businesses in the downtown Special Service District requesting an indication of interest in accessing these funds. The deadline for indication of interest is Monday, December 4, 2000. The CDA will review the level of interest and is preparing guidelines and policies for the program. Funds are expected to be available on or before January 1, 2001. The City Council approved the EDC's recommendation to reprogram $34,614 of 2000 CDBG s to be applied toward the CDA's acquisition of a site for an affordable town house lect in Lakeville, and the 2001 CDBG application for $109, 819 to also be applied to the CDA's site acquisition forthis project. Comm. Tushie commented on the EDC's need for an affordable housing study, indicating that more than 30 affordable housing units will be needed in the future. The study would provide information on the methods and resources available to develop more affordable housing. Comm. Emond requested that staff provide information at the next meeting regarding affordable housing resources. 6. Incentive Study update. Mr. Grussing indicated that the City Council reviewed the EDC's request for 2001 funds to commission an incentive study to be conducted by Springsted, Inc. The City Council requested support from the Chamber of Commerce for this study, and a letter of support from Chamber Director Todd Bomhauser was provided to the City Council. Approval of the request is anticipated at a budget amendment meeting in December. Comm. Matasosky questioned the process Springsted will use and suggested that the process include a brainstorming session with representatives of the business community. It was concluded that a brainstorming session to explore business motivations and innovative ideas be discussed with Springsted at the January EDC meeting. 7. Review mailing list for Airlake Park News. 2000, November 28 4 G:1AFIad\ECONDEV\EDC12000mtgs1001128 mtg\min 001128.doc DA Flad provided the mailing list for Airlake Park News as requested at the last meeting. In wing the recipients of the newsletter, it appears that it is read by several commercial, in ustrial, and service businesses in addition to Airlake Park businesses. Elected officials and others also receive it. Staff has concluded that those outside of Airlake who have requested to receive the newsletter do so because of their interest in economic development in Lakeville. The focus continues to be industrial development primarily in Airiake, therefore the name of the newsletter is consistent with its purpose and no changes were recommended. Additionally, a Chamber Newsletter does highlight issues of relevance to commercial, service and industrial businesses and is available to all Chamber members. City Administrator Erickson suggested a periodic mailing of the Chamber newsletter to the Airlake Park mailing list recipients and an Airlake Park News mailing to Chamber newsletter recipients. Discussion ensued regarding EDC packet attachments. Mr. trussing indicated that staff met with Metals USA regarding their interest in obtaining a site in Lakeville or Brooklyn Center. A recruitment packet was developed for Metals USA that contrasted Lakeville's property taxes and water rates with Brooklyn Center's, along with providing additional information about fiber availability, transportation, labor force and the business community in Lakeville. A decision is expected from Metals USA by the end of December. Discussion also ensued regarding Lakeville's ranking for industrial wages compared to other communities and a letter from Finance Director Dennis Feller to a resident regarding the use of Tax Increment Financing. ~djourn. Chair Vogel called the meeting adjourned at 8:15 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R.T. Brantly, Secretary • 2000, November 28 5 G:SAFIad\ECONDEV~EDC12000mtgs1001128 mtglmin D01126.doc EDC ACTION ITEMS NOVEMBER 28-JANUARY 23RD ISSUE ACTION RESP COMPLETED Minutes Revise and send to Counci! Ann • Gef all previous meeting minutes signed Penny and book in order for ear-end Park Dedication and • Memo with recommendation & minutes to Ann Development Fees Parks for Dec. 13`h meeting. • Recommendation to Council for Dec. 98`h Steve? meeting • Draft letter to Regans explaining Ann recommendation & rationale Labor Force Focus Group • Convene Subcommittee fo create a Ann & Report document plan for fostering leadership in Arlyn Airlake to address labor force recruitment/marketin Financial Incentives • Arrange for Springsted to attend January Ann meetin Affordable Housing Research financing options for Jan. Ann meetin Arlyn CDBG • Meef with CDA to review pre-apps and Ann next steps, Dec. 4, 2:30 Arlyn • 2000, November 28 6 G:WFIad\ECONDEV\EDC\Z000mtgs\001128 mtg\min 001128.doc