HomeMy WebLinkAbout08-26-03-03
• City of Lakeville
Economic Development Commission
Meeting Minutes
August 26, 2003
Marion Conference Room, City Hall
Members Present: Brantly, J. Erickson, Gehrke, Matasosky, Miller, Pogatchnik,
Schubert, Smith, Tushie, Ex-Officio member Robert Erickson -City Administrator, Ex-
Officio member Todd Bornhauser -Executive Director -Lakeville Area Chamber of
Commerce.
Members Absent: Comms. Emond
Others Present: Staff present: David Olson, Community & Economic Development
Director; Amanda Alfson, Economic Development Coordinator.
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 June 24, 2003 Meeting Minutes
Motion 03.14 Comms. Smith/Pogatchnik moved to approve the minutes of the
June 24, 2003 meeting. Motion carried unanimously.
3. Summary of Himle Horner's Presentation on Communication Strategies for
Economic Development
Mr. Olson shared that on Tuesday, July 1; Todd Rapp of Himle Horner presented
Developing a Coordinated Communications Strategy for Economic Development to
twenty-two individuals including City Staff, School District officials, Chamber of
Commerce representatives and EDC members. Mr. Olson also stated that the EDC
has not engaged the services of Mr. Rapp since the Himle Horner presentation, but
that a working relationship has been established and that Mr. Rapp has indicated
that he would be willing to work on a per project basis with the City in the future.
Mr. Olson explained that Mr. Rapp created the Powerpoint presentation with the help
of Jeff Lueders and Ms. Alfson, which enables the City to modify it as necessary for
a particular audience. Mr. Olson stated that the presentation would be made
available as needed.
• Ex-Officio member Bornhauser indicated that the Powerpoint presentation would
benefit from additional local examples to demonstrate "how to get there."
• Comm. Brantly stated that the EDC should check for opportunity's to share common
ground through additional community organizations.
4. Discussion of Strategic Plan 2003 Work Program
Mr. Olson reviewed the 2003 Work Program for the 2002-2004 Strategic Plan for
Economic Development and the status of each of this year's work program goals.
Mr. Olson indicated that the first work program goal is: `To inform the residents of
the benefits of commercia!/industrial development." Mr. Olson informed the EDC
members that the Spotlight on Business program continues to be well received by
the City Council, the local business community and hopefully Lakeville residents.
Comm. Pogatchnik stated that the price was right and the time slot is perfect!
Other commissioners concurred.
Mr. Olson stated that in the future the EDC might need to be more creative with
funding communication tools. Mr. Olson shared that communication needs are met
through Messages page, cable dept. and website with minimal cost. Mr. Olson
indicated that communicating through the City of Lakeville website allows for an
easy to update and cost efficient communication tool.
• Mr. Olson explained that the second (and most challenging) work program goal is to:
"Encourage communication between the school district, county and city in order to
provide greater understanding of the financia! needs and the be»efits commercial
and industrial development bring, in order to facilitate financial planning for the
community." Mr. Olson stated that having School District representatives present at
the Himle Horner presentation was a big step. Mr. Olson also stated that
communicating with the County is more of a challenge due to the priority of the
legislative issues at this time.
Mr. Olson indicated that the third work program goal is: "To encourage the
investigation of critical business infrastructure." Mr. Olson shared that interchange
improvements are progressing and that the Crossroads development is one project
with significant infrastructure upgrades that are privately funded as well as existing
properties that are being redeveloped in the area of CSAH 5011-35, such as the old
Tom Thumb site. Mr. Olson stated that when improvements in the area of CSAH
50/I-35 are made, private investment will follow.
Mr. Olson shared that the County has expressed interest in dealing with the ten-ton
road issue. The City overlaid all roads to achieve aten-ton design, except for Co.
Rd. 70, in Airlake Industrial Park with the understanding that the County would then
overlay Co. Rd. 70. Co. Rd. 70 has not been overlaid to date. Mr. Olson stated that
staff would continue to encourage the County to pursue this much-needed roadway
. improvement.
• Mr. Olson explained that the Cedar Avenue Transitway Study and the Dakota
County Transportation Plan are underway. Mr. Olson stated that both of these
planning efforts would have significant impacts on future economic development in
Lakeville especially along Cedar Avenue, Co. Rd. 46 and Pilot Knob Road.
Mr. Olson shared that City staff has had discussions with the MAC and Aircraft
Resource Center, Inc. (the current FBO at Airlake Airport). City staff is scheduled to
meet with Eureka Township regarding annexation to allow for the expansion of the
FBO facilities. City staff is recommending that the entire leased building be under
one jurisdiction.
Mr. Olson stated that the fourth work program goal for 2003 is to: "Encourage a
balance between commercia~ndustriai and residential tax base." Mr. Olson shared
that 2003 has been a record year for both residential and commercial building
permits. Mr. Olson stated that City staff monitor development very closely. Mr.
Olson also stated planning has begun for the 10th Annual Manufacturing and
Technology Week that will be held in the Airlake Industrial Park. Mr. Olson indicated
that staff has also been assisting in the planning of a social event to be held on
September 4th for all of the businesses and their employees located in the Fairfield
Business Campus.
5. 2003 Community Development Block Grant Project(s)
• Mr. Olson informed the EDC members that the City has recently received
authorization from the Dakota County CDA to proceed with expending the 2003
Community Development Block Grant (CDBG) funds consistent with the approved
application that was submitted in January. The two activities that were identified in
this year's application were the Downtown Code Improvement Program ($70,000)
and Demolition and Clearance of Blighted Buildings ($25,000).
Mr. Olson stated that a potential demolition and clearance project that was identified
in the application was a vacant house located behind Lakeville Tire and Auto on the
corner of Holyoke and 209th Street. Mr. Olson explained that Bud Allstot, owner of
Lakeville Tire and Auto, has submitted the necessary planning applications for the
construction of a 17-car parking lot west of his existing building. In addition to the
construction of a new parking lot (including curbing and landscaping), screening of
the dumpster, mechanical equipment and tire cages will be provided. Mr. Olson also
informed EDC members that Mr. Allstot is in the process of constructing a new roof
on his existing building and will be installing new windows and E.F.I.S. on the
Holyoke Avenue side of the building.
Mr. Olson shared that the CDA will be coordinating the demolition activities including
any necessary asbestos abatement.
•
• 6. Update on Budget Issues
City Administrator, Bob Erickson, shared a Preliminary Economic Development
Budget with EDC members. Mr. Erickson stated that the focus by staff should be to
facilitate current development that is brought forward with an emphasis on Co. Rd.
50 business relocation. Mr. Erickson indicated that City staff has reached an
understanding with Super America for purchase of the property.
Mr. Erickson stated that the theme for the 2004 budget is: "Back to the Basics." Mr.
Erickson shared that $1.2 million will be lost in 2004. Mr. Erickson stated that the
Council thought that customer service training should remain in the budget.
However, the Report on Economic Development would be most effective if sent out
at the end of the 2002-2004 Strategic Plan period.
Mr. Erickson explained that there is concern with the City continuing to grow at the
pace that it wants to grow and the services that must follow that growth. Mr.
Erickson stated that liquor store profits would be shifted to the general fund along
with cable franchise fees. Some of the programs that will be eliminated are: DARE,
lifeguards, warming house attendants and night attendants at the Water Treatment
Facility. The City of Lakeville will also no longer be funding the 4th of July fireworks.
Mr. Erickson informed EDC members that the tax base (payable 2004) grew by
• 6.4%. Of that growth, 73% was residential and 27% commercial/industrial that
equates to 18% of the overall tax base. $30 million of new commercial development
projected in the next 24 months is in the Co. Rd. 50 /I-35 interchange area.
Mr. Erickson stated that the Metropolitan Council will increase sewer rates
approximately $.50/month. At this time, City Council does not plan to raise water
rates however; the DNR may force the Council to establish tiered water rates with
the intent to reduce peak water usage.
7. Minnesota Manufacturing and Technology Week
Mr. Olson explained to EDC members that staff has begun planning for the 10th
Annual Manufacturers and Technology Week in Lakeville that will be held October
20-24, 2003. The Mayor will officially designate that week as manufacturing and
Technology week as part of a statewide initiative to recognize the contributions of
industrial businesses.
Mr. Olson stated that during Manufacturing and Technology Week 2002, Ryt-Way
Industries, Inc. expressed interest in hosting the Manufacturers' Appreciation
Luncheon this year. The date and location of the luncheon is still yet to be
determined.
• Mr. Olson reminded EDC members that Dr. Ron Thomas, President of Dakota
County Technical College, was the keynote speaker in 2002. Chair Matasosky
• suggested that staff focus on utilizing people available to us, and that focusing on
economy issues may be an option.
7. Director's Report
Mr. Olson updated EDC members on the Downtown Carwash/Drycleaner property.
Demolition of the Downtown Car Wash/Drycleaner was completed on July 3.
Concrete and soils contaminated with perchloroethylene (PCE) were encountered
during the demolition process. This resulted in two truckloads of demolition debris
being sent to a hazardous waste disposal facility in Michigan. The lab analysis of
the soils that remain on the site determined that the contamination levels of these
remaining soils to be within acceptable level. Mr. Olson explained that the
Minnesota Pollution Control Agency has determined that no further remediation of
the site will be necessary. Dakota County Environmental Management staff has
suggested that additional ground water testing be completed on the site and offered
to complete this additional testing that is deemed necessary and has indicated to the
County that it will proceed with the conveyance of the site to Wells Fargo to allow for
the construction of an off-street parking lot.
Mr. Olson stated that dialogue between the City of Lakeville and representatives of
the Metropolitan Council continues regarding future sewer service issues in the City.
• Mr. Olson explained that the commercial portion of the Crossroads Development
was recently sold by OPUS to H.J. Development. It was anticipated that OPUS
would sell its interest in this type of commercial development however; it is more
typical for this to occur after the buildings have been constructed, and in many
cases, partially or fully leased. Mr. Olson stated that OPUS will complete the
construction of the Cub Foods store and adjacent retail space that totals 116,000-
square-feet. H.J. Development has indicated that they plan to own and manage the
commercial portion of Crossroads for the long term. The Cub Store at Crossroads is
scheduled to be open March Stn
Mr. Olson updated EDC members on the construction of the new building in Fairfield
Business Campus for Advanced Wireless Communications. Mr. Olson stated that
much of the site and utility work has been completed and pre-cast panels will begin
to be put in place soon. Construction is expected to be completed by December 31.
Mr. Olson confirmed that building permits were recently issued and construction has
commenced on two new projects in Airlake Development 4`" Addition along Heron
Way. JTW & Associates will be constructing a 6,000-square-foot manufacturing
facility. Hebert & Associates will be constructing a 27,000-square-foot office
warehouse facility. This new office warehouse facility will provide needed space for
lease by small and start-up businesses.
• Mr. Olson informed EDC members that the City Council approved a Conditional Use
Permit for Cloverleaf Cold Storage's proposed conversion of the Merillat Building on
• Cedar Avenue to a freezer warehouse facility at their August 4th meeting. Once the
closing on the sale of the property has occurred, it is anticipated that demolition of
that portion of the former Merillat building, and construction of a freezer warehouse
addition, will commence.
Mr. Olson also shared that the Chamber of Commerce and the City collaborated on
the printing of new City maps.
8. Adjourn
The meeting was adjourned at 8:05 p.m.
Respectfully submitted by: Attested
to: / ~
Amanda Alfson, R. T. Brantly, Secreta
Economic Development Coordinator
•