Loading...
HomeMy WebLinkAbout04-22-03-03 • City of Lakeville Economic Development Commission Meeting Minutes April 22, 2003 Marion Conference Room, City Hall Members Present: Brantly, Emond, J. Erickson, Gehrke, Matasosky, Miller, Pogatchnik, Smith, Tushie, Ex-Officio member Todd Bornhauser -Executive Director - Lakeville Area Chamber of Commerce, Ex-Officio member Robert Erickson -City Administrator. Members Absent: Schubert. Others Present: Staff present: David Olson, Community & Economic Development Director; Amanda Alfson, Community & Economic Development Coordinator; Penny Brevig, Recording Secretary. 1. Call Meeting to Order. • Chair Matasosky called the meeting to order at 6:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve March 25, 2003 Meeting Minutes. Motion 03.08 Comms. J. Erickson/Brantly moved to approve the minutes of the March 25, 2003 meeting.. Motion carried unanimously. 3. Introduction of New Economic Development Coordinator -Amanda Alfson Mr. Olson welcomed and introduced Amanda Alfson as the new Economic Development Coordinator. The EDC members introduced themselves: Ms. Alfson provided the members information on her background and why she sought this position. 4. Update on Subcommittee Recommendations on Himle Horner's Recommended Communication Strategies for Economic Development. Mr. Olson stated that members of the C/I Subcommittee met on Thursday, April 17 to begin discussing the implementation of the Himle Horner recommendations for communication strategies for economic development. Mr. Olson indicated the consensus of the subcommittee, identifying the individuals who should attend the • presentation by Todd Rapp. Economic Development Commission Meeting Minutes Apri122, 2003 • Comm. Matasosky indicated that the subcommittee decided that the group attending the initial presentation needs to be limited. City Administrator Erickson concurred. Mr. Olson indicated that the initial group would include 20-30 people. We have not shared this information with ISD #194. Mr. Olson stated that a trial run is needed with this initial group. Mr. Olson stated that it was the consensus of the Commercial/Industrial Subcommittee to request Himle Horner to prepare a draft PowerPoint presentation to include the key points and recommendations to be used in the presentation to these individuals. He indicated that the subcommittee will meet again to review this draft presentation and further plan the event at which Mr. Rapp will make the presentation. Mr. Olson stated that the cost for Mr. Rapp to prepare and give the presentation would be between $1,000 - $1,200. 5. Review of the Status of Dakota Future, Inc. (formerly known as the Dakota County Economic Development Partnership, DCEDP) Mr. Olson summarized the recommendations of Taud Hoopingarner, DCEDP Organizational Task Force Chair, pertaining to the creation of Dakota Futures Inc. He indicated that this organization is proposed to replace the Dakota County Economic Development Partnership and described the focus of the proposed new • organization. Mr. Olson stated that the proposed Dakota Future Inc. would be structured as a 501 c(6) and/or a 501 c(3) in order to leverage both private and public sector resources to put toward its goals. He indicated that the size of the Board of Directors would be reduced from 27 members to 17 members, Mr. Olson explained Exhibit A, Board of Directors Appointment Schedule and Process. Mr. Oison stated that the Organizational Task Force is also requesting consideration of a Memorandum of Understanding that attempts to better define the roles, contributions and responsibilities of member cities, other organizations and the new Dakota Future Inc. Mr. Olson indicated what the City would agree to in the draft Memorandum of Understanding. Mr. Olson indicated that the new membership dues structure has not been established for city members of the proposed Dakota Future Inc. He stated that it is not anticipated that the cost of membership would increase significantly. In fact, Mr. Olson indicated that it has been suggested that City dues be reduced to $1,000 for the first year while the new Dakota Future Inc. becomes more established. Mr. Olson stated that the City Council previously placed a hold on the $5,600 that was included in the 2003 Economic Development Budget pending the outcome of the State Aid cuts being considered by the Legislature. If the City • G:1Econorttic Developmen[\EDC7EDC Meetings\2003mtgs\04 April\minutes Apri122.doc 2 Economic Development Commission Meeting Minutes April 22, 2003 • is to consider membership even at a reduced level of $1,000 for 2003, Mr. Olson stated that the City Council would need to re-appropriate the necessary funding. Mr. Olson stated that staff is not recommending approval of the Memorandum of Understanding at tonight's meeting. He indicated that it is anticipated that more will be known in the next 30-60 days regarding the proposed initial dues structure, what the consensus of other cities is on the proposed Dakota Future Inc. and the impact of State Aid cuts to cities being considered by the State Legislature. Comm. Brantly asked who was bringing this change. Mr. Olson indicated that Mr. Hoopingarner, and LaDonna Boyd from Dakota Electric are taking the lead to keep this organization going. It was the consensus of the EDC that the City has not received any tangible benefits from its membership in the Dakota County Economic Development Partnership and questioned whether we needed to continue membership in this new organization. 6. Discussion of Wage Floor Amendment to the Business Subsidy Policy Mr. Olson stated that the City of Lakeville adopted a Business Subsidy Policy on February 22, 2000 in compliance with the Minnesota Business Subsidies Act. • This policy has been utilized since that time for projects that have received subsidies in excess of $100,000. Mr. Olson indicated that a provision of the Act requires granting agencies to incorporate a specific wage floor for the jobs created as an internal part of our Business Subsidy Policies by May 1, 2003. He stated that the wage floor may be stated as a specific wage rate or may be stated as a formula that will generate a specific wage rate. Mr. Olson presented examples of the wage floors that are being considered or have been approved by several local entities. Ms. Alfson provided the EDC with some examples of what cities around the metro area have in place for the wage floors. The current Federal Minimum Wage is $5.15 per hour. Mr. Olson indicated that staff would suggest utilizing a formula as opposed to a fixed dollar amount that is likely to require updating more frequently. Mr. Olson also pointed out that the wage floor is a minimum and the City will consider numerous aspects of a proposed project in addition to the wage levels of the jobs to be created when determining whether a business subsidy is warranted. Mr. Olson stated that one reason to consider establishing a wage floor on the lower end of the range is that certain types of redevelopment projects are subject • to Business subsidy policies and the wage levels for jobs created in retail and G:~Economic Development\EDC~EDC Meefings~2003m[gsW4 April~minuus April 22.doc 3 Economic Development Commission Meeting Minutes April 22, 2003 • commercial type projects tend to be lower than those created in the manufacturing sector. Mr. Olson recommended that a public hearing be scheduled for the May 27 EDC meeting to consider a proposed amendment to incorporate a minimum wage floor into the City's current Business Subsidy Policy. It was the consensus of the EDC to not advertise a dollar amount and that the minimum wage floor be equivalent to the Federal Minimum Wage. Motion 03.09 Comms. Tushie/Brantly moved to recommend a public hearing be scheduled for the May 27 EDC meeting to consider a proposed amendment to incorporate a federal minimum wage floor into the City's current Business Subsidy Policy. Motion carried unanimously. 7. Update on Advanced Wireless Inc. Project Mr. Olson stated that based on the provisions of the approved Contract for Private Redevelopment dated April 1, 2002 and amended on July 15, 2002 and September 3, 2002, Coons Family LLC (d/b/a Advanced Wireless Communications) was to have completed construction of the footings and foundation of its building on the lot they purchased from the City in the Fairfield • Business Campus by April 1, 2003. This was not accomplished and as a result, on April 10, the City Attorney's office notified Coons Family LLC in writing that they were in default and that they had 30 days to remedy this default or the Ciry would pursue its remedies available under the terms of the Contract. Mr. Olson had provided a copy of a letter to the City from Ben Coons, dated April 10, 2003 that explains the situation regarding the status of their project and why construction had not commenced on the building. Mr. Olson indicated that the City has received inquiries from another Lakeville business that is interested in possibly constructing a new building on this lot. He stated that the business owner has been informed that the City cannot consider his inquiry until both parties to the current contract have had the opportunity to exercise their remedies under this contract. Mr. Olson stated that staff would continue to keep the EDC apprised as to the status of this project and its anticipated construction start date. 8. Director's Report Mr. Olson indicated that Despatch Industries was featured at the April 7 City Council meeting and was introduced by Commissioner Emond. Alcorn Beverages • G:\Economic Development\EDC\EDC Meetings\2003mtgs\04 April\tninutes Apri122.dce 4 Economic Development Commission Meeting Minutes April 22, 2003 . was scheduled for the April 21 City Council meeting, but was rescheduled due to the owner being unable to attend the City Council meeting. Mr. Olson stated that the City Council recognized the developers of six different Life-Cycle Housing projects that have been or are in the process of being constructed in Lakeville. Commissioner Schubert and Guy Peterson of the Metropolitan Council participated in the recognition and presentation at the April 21 City Council meeting. An updated Commercial/Industrial/Institutional Project list, dated April 7, 2003, was distributed to the EDC in their packets. Mr. Olson also updated the EDG on City Council approval of several actions regarding the County Road 50 and 135 Interchange Project including extension of the Moratorium for up to an additional twelve months and authorization of the preparation of plans and specifications for the Interim Improvements to be constructed in 2004. Mr. Olson discussed the summer meeting schedule. It was suggested that the July meeting be cancelled due to summer vacations. The EDC members concurred with this recommendation. • 9. Adjournment. The meeting was adjourned at 7:05 p.m. Respectfully submitted by: Attested to: o .7 Penny a ,Recording retary R. T. Brantly, Secreta • C1Economic Development\EDC~EDC Mee[ings~2003m[gs~04 ApriMtinures April 22.doc 5