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HomeMy WebLinkAbout01-28-03-03 City of Lakeville Economic Development Commission Meeting Minutes January 28, 2003 Marion Conference Room, Lakeville City Hall 20195 Holyoke Avenue Members Present: Comms. Emond, Schubert, Miller, Matasosky, Tushie, Pogatchnik, Brantly, Ex-Officio member Todd Bornhauser -Executive Director of the Lakeville Area Chamber of Commerce, Ex-Officio member Robert Erickson -City Administrator. Members Absent: Comms. Smith, J. Erickson. Others Present: Staff: David Olson, Community & Economic Deveiopment Director; Ann Flad, Economic Development Coordinator. Former Economic Development Commission Chair Bob Vogel. 1. Call Meeting to Order. • Vice-Chair Matasosky called the meeting to order at 6:03 p.m. in the Marion Conference Room of City Hall at 20195 Holyoke Avenue, Lakeville, MN. 2. Approve November 26, 2002 Meeting Minutes. Motion 03.01 Comms. Brantly/Schubert moved to approve the minutes of the November 26, 2002 meeting. Motion carried unanimously. 3. Comments by former Chair Bob Vogel. Former Economic Development Commission Chair Bob Vogel addressed the commissioners and thanked them for the gift presented to him at the Advisory Commission Holiday Event on December 4, 2002. He also thanked the Commissioners for the positive experience working with them and indicated he will miss the EDC's innovation and work on marketing the community. Vice-Chair Matasosky indicated that Mr. Vogel provided the EDC with direction and energy, which will be greatly missed. Other Commissioners concurred. City Administrator Erickson thanked Mr. Vogel for the years he dedicated himself to the EDC and said that the current and past staff have appreciated Mr. Vogel's ability to provide focus and achieve results. • Mr. Vogel then left the meeting. Economic Development Commission Meeting Minutes January 28, 20D3 • 2. Election of OfRcers. Ms. Flad indicated that the February 22, 1994 Resolution Confirming and Defining the Purpose, Responsibilities and Terms of Office for the Economic Development Commission states that "at the first meeting of the year, the Commission shall elect a Chairperson, Vice Chairperson and Secretary from amongst its appointed members to serve for a term of one year." EDC members elected Bob Vogel as Chair, Jack Matasosky as Vice-Chair, and Bob Brantly as Secretary for 2002. Upon the resignation of Bob Vogel in November, 2002, Vice-Chair Matasosky assumed the role of Chair for the remainder of year. The City Council is currently accepting applications to fill the vacancy created by Mr. Vogel's resignation. Vice-Chair Matasosky asked for nominations to fill the three offices. Comm. Brantly nominated Vice- Chair Matasosky for the position of Chair for 2003. Comm. Pogatchnik nominated Secretary Brantly for the position of Secretary for 2003. Comm. Emond nominated Comm. Pogatchnik for the position of Vice-Chair for 2003. Motion 03.02 Comms. Emond/Tushie moved to elect Comm. Matasosky as Chair, Comm. Pogatchnik as Vice-Chair, and Comm. Brantly as Secretary of • the Economic Development Commission for 2003. Motion carried unanimously. 4. 2002-2004 Strategic Plan for Economic Development: Progress on 2002 Work Plan; Draft 2003 Work Plan Ms. Flad indicated that the 2002-2004 Strategic Plan for Economic development included a one-year work plan to guide the EDC's efforts in 2002. A status report was given on the progress made in achieving the 2002 Work Plan goals. A draft 2003 Work Plan was developed with the four Strategic Work Areas as identified in the 2002-2004 Strategic Plan for Economic Development forming the basis of the new Work Plan. Efforts toward achieving three goals noted in the 2002 Work Plan continue and were therefore recommended to be carried forward into 2003. Efforts to achieve the first goal, "to inform the residents of the benefits of commercial/industrial development," include continuation of the Spotlight on Business Program, obtaining input from Himle Horner on other communications methods, publishing a Progress Report on Economic Development to be mailed to all residents and businesses, and investigation of establishing an e- newsletter todisseminate information. 2 Economic Development Commiss(on Meeting Minutes January 28, 2003 The second goal is intended to encourage communication between the school district, county, and city in order to provide greater understanding of the financial needs and the benefits commercial and industrial development bring, in order to facilitate financial planning for the community. City Administrator Erickson noted that it is difficult to gain an understanding of these entities financial needs until it is known how the legislature intends to deal with budget shortfalls. It was suggested that a priority for the EDC should be to evaluate the impact of the legislature's decisions when they are known. This will be added to the work plan as an action step. Efforts to achieve the third goal, "to encourage the investigation of critical business infrastructure," includes efforts to participate in the planning and subsequent economic development associated with interchange upgrades, east-west corridor planning, maintaining the relationships developed with telecommunications providers, and continued dialog with Progressive Rail and the Airlake Airport Advisory Committee. Ms. Flad also indicated that staff suggests adding a fourth goal to the 2003 Work Plan which guides the EDC to "encourage a balance between commercial/industrial and residential tax base." Business retention and expansion efforts, manufacturing week activities, and communications methods such as continuing the Airlake Newsletter are examples of steps that are already being pursued in order to encourage a balanced tax base. Commissioner Tushie indicated that the 2002-2004 Strategic Work Plan did include a goal • to encourage the development of affordable housing, and suggested that the EDC renew its focus on this goal. Mr. Olson explained that the City continues to work with the Dakota County Community Development Agency (CDA) to pursue development of an affordable rental townhome project on the Gilb site near United Building Products, with the Wren site on 210th Street slated for a future affordable rental townhome project. Comm. Tushie commented that there is a need for affordable, "for-sale" homes in Lakeville, and that this lifecycle housing option is scarce in Lakeville. Mr. Olson indicated that information would be provided to the Commissioners at the February meeting regarding the number of townhomes in Lakeville that sold for under $170,000 in 2002, which is the Livable Communities Act standard for affordability. Chair Matasosky reflected that there are three ways to affect housing affordability: address the land price, adjust the density, or secure subsidies. Comm. Tushie added that senior rental housing required 40-60 units per acre in order to be "affordable." Comm. Emond inquired how many affordable, for-sale units the community needs, and suggested reviewing the ratios that other communities have. Comm. Tushie also suggested looking at the most recent Maxfield Research study. Comm. Brantly noted that accommodating affordable housing options in Lakeville helps achieve the balance between commercial/industrial and residential development that the EDC discussed during its Strategic Planning process. • 3 Economic Development Commission Meeting Minutes January 28, 20D3 • Staff will revise the draft 2003 Work Plan per the EDC's comments and present it for approval at the February meeting. Pending approval, the 2003 Work Plan will be presented to the City Council at the first meeting in March. 5. Strategic Plan Work Item: Educate residents on benefits of C/l: Update on efforts of Himle Horner. The City Council, at its December 2, 2002 meeting, authorized the retention of the Public Relations firm of Himle Horner to review existing communications materials to ensure that they are consistent with the City's Strategic Plan for Economic Development. Ms. Flad reported that staff met with Mr. Todd Rapp of Himle Horner and provided him with copies of documents to review in light of the Strategic Plan for Economic Development on December 20, 2002. Mr, Rapp will review the documents and provide the EDC with recommendations by the end of Febnaary on methods to strengthen the Economic Development message in these materials. Mr. Rapp will then provide the EDC with recommendations for development of a Progress Report on Economic Development to be mailed to all residents and businesses in 2003. 6. Strategic Plan Work Item: Encourage Potential Upgrades of Critical Business • Infrastructure: Update on 50-60-70 Interchanges. Mr, Olson indicated that the City Council held a public hearing on December 16, 2002 to consider approval of the Interchange Financing Report as prepared by Springsted and City Staff. Chair Matasosky testified at the public hearing in support of the proposed Interchange Financing Report that will serve as the City's Street Reconstruction Plan. Upon completion of the public hearing, the City Council voted unanimously to approve the proposed Interchange Financing Report. At the January 21, 2003 City Council meeting the Council authorized the issuance and awarding the sale of $14,660,000 in General Obligation Street Reconstruction Bonds. Bids on this proposed bond issuance will be opened on March 3, 2003 and presented to the City Council. Chair Matasosky inquired whether residents were expressing interest in the financing for the interchanges. Mr. Olson responded that primarily businesses and property-owners were expressing interest. Countv Road 50 Mr. Olson also indicated that the City and its design firm of SRF Consulting Group has been working with Dakota County, MnDOT and Federal Highway Administration staff to develop a preliminary design for both the Interim Improvements for the I-35 /County Road 50 area that primarily consist of improvements east of I-35. Work is also being done to develop two alternatives for the Ultimate Improvements that would include complete • replacement of the bridge and new ramp construction. a Economic Development Commission Meeting Minutes January 28, 2003 The proposed Interim Improvements that are anticipated to be completed in 2004 will • necessitate the acquisition of a number of commercial properties. These include the SuperAmerica gas station at the corner of County Road 50 and 175' Street and the adjacent Taco Beli restaurant. In addition, the City would need to acquire the currently vacant Sinclair Gas Station and a portion of the Friendly Host motel that includes the smaller of the two motel buildings on the property. City staff has met with the owners of the active businesses that would be acquired and informed them in advance of the project impacts. Mr. Olson also indicated that a public open house is scheduled for Wednesday, January 29tH at the Water Treatment Facility from 5:00 - 7:00 p.m. All property and business owners in the project area have been invited to this open house to preview the design of the Interim Improvements as well as two alternatives for the Ultimate Interchange Improvements. County Road 60 Mr. Olson reported that Dakota County and the City of Lakeville hosted an Open House on the County Road 60 project on Thursday, January 16, 2003 at the Water Treatment Facility. Representatives from Scott County were also in attendance since the project extends into Scott County along County Road 21. A similar open house was held in Credit River Township in Scott County on January 14tH. A copy of a newsletter that was mailed out prior to the Open Houses is attached. Planners and Engineers from both Dakota and Scott Counties intend to take the comments received into consideration as the design • process continues. Additional meetings are planned for this spring to give an update on the design and environmental process. This project is scheduled to begin construction in 2004. Approximately 75 people attended the Open House in Lakeville of which nearly half were Scott County residents. The most common issues raised by persons attending the Open House were desire the for traffic signals at Judicial Road and Natchez Ave. and the concerns regarding the speed of traffic and concerns regarding the proposed medians that will restrict access in some locations to right-in and right-out only. County Road 70 Preliminary design work continues on the proposed Interchange Improvement at Co. Rd. 70 & I-35. Funding sources have not been identified for this interchange in the Interchange Financing Report, however, by completing the design process upfront and "having it on the shelf', it is anticipated the City and Dakota County will be better positioned to access any State or Federal funding that becomes available. Various Interchange design alternatives continue to be pursued including a diamond, folded diamond, and even the possibility of a round-about similar to the one that was recently installed south of Lakeville at I-35 in Medford. A number of advantages have been identified with the folded diamond design. These include maintaining two access points on the east side of I-35 at Kenrick and Kensington. It also allows for utilization of • s Economic Development Commission Meeting Minutes January 28, 2003 . the current alignment of Keokuk on the west side of I-35. The EDC will be kept informed as progress continues on the design of this Interchange improvement. Comm. Emond indicated that development of the land in the vicinity of the Co. Rd. 70 & I- 35 interchange has been on hold until the design of the interchange improvements is solidified. City Administrator Erickson suggested it would be six to twelve months before the design is finalized. 7. Director's Report. Mr. Olson reported that the City Council approved the 2003 CDBG application as recommended by the EDC in November of 2002. The two activities being recommended for funding included the Downtown Code Improvement Program ($73,691} and Downtown Demolition and Clearance ($30,000). Since the EDC meeting in November, an additional project has been identified for the possible use of demolition and clearance funds. Lakeville Tire & Auto Inc. is considering an expansion that would include the demolition of a vacant house west of the current location at the corner of Holyoke and 209' Street to create more off-street parking. The demolition of this house would be an eligible use of CDBG funds. Mr. Olson reported that the Dakota County Technical College (DCTC) had been awarded a $331,154 grant to assist ConAgra with the training operators of new automated equipment that has been installed in their Lakeville plant. ConAgra is required to provide matching funds for this training grant. • Mr. Olson reported that Gander Mountain recently contacted the City about the possibility of developing an 80,000 + square foot sporting goods store in Lakeville. One of the sites being considered is a 10-acre site near HOM Furniture. A preliminary traffic analysis has indicated this type of commercial use would generate less traffic than other shopping center or restaurant types of commercial development. Mr. Olson indicated that the Spotlight on Business program for 2003 was initiated at the January 21st City Council meeting at which EDC member Barry Pogatchnik introduced Mark Hotzler and presented information on the Lakeville Mall. Applied Power Products has been scheduled for the February 3`d City Council meeting and Airlake Ford has been scheduled for the February 18th meeting. Comm. Brantly volunteered to introduce Airlake Ford at the February 3, 2003 Council meeting, and Ms. Flad reported that Comm. Smith had contacted her indicating he would present at the February 18, 2003 meeting. Mr. Olson provided an update on potential State Aid cuts, indicating that in preparation of the possible imposition of Local Government Aid (LGA) cuts to balance the current State Budget shortfall, a number of City budget line items have been put on hold pending final decisions by the State Legislature. The City Council approved the recommended hold on these budget line items at a Council Work Session on Friday, January 24th • 6 Economic gevelopment Commission Meeting Minutes January 28, 2003 Mr. Olson indicated that the City Housing and Redevelopment Authority approved two actions . regarding existing TIF Districts at a Special HRA Meeting on January 21, 2003. The first action was to approve the decertification of Tax Increment District No. 1 (McStop). Tax increments from this TIF District were pledged towards the repayment of bonds that were issued to finance the construction of the McStop Water Tower and Well No. 7. The last payment towards these bonds was made in 2002. This allows the HRA to approve the decertification of this existing TIF District. The second action taken by the City HRA was to amend the budget for TIF District No. 1 (Despatch Industries}. This is a different TIF District than referenced in the previous paragraph however was assigned the same number when it was created. This TIF District is capturing more tax increment than originally anticipated. State Statute requires that TIF District budgets be amended in this situation. The additional captured increment will be appropriated to the General Obligation Improvement Bonds that financed the downtown street reconstruction project. This TIF District is scheduled to be decertified in 2008. Comm. Brantly inquired about the status of the court challenge to the Metropolitan Council's proposal to explore extending a sewer interceptor south to the Elko-New Market area. City Administrator Erickson reported that the new Met Council has indicated they will be reviewing the proposal before taking further action. City Administrator Erickson also indicated that Scott County is considering a proposal to develop 4.5 square miles of land into 2.5-acre residential lots. The majority of the area being considered is in Independent School District 194 and would place a significant fiscal impact on the school system, even with the new high school. • Another concern with this proposal is the volume of traffic that Scott County would generate at the Co. Rd. 70 & I-35 interchange without sharing in the fiscal obligations for upgrading the interchange. 8. Adjourn. The meeting was adjourned at 7:32 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R.T. Brantly, Secretary Q •