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HomeMy WebLinkAbout12-09-03-03 City of Lakeville Economic Development Commission • Meeting Minutes December 9, 2003 Marion Conference Room, City Hall Members Present: Comms. Brantly, Emond, J. Erickson, Gehrke, Matasosky, Miller, Pogatchnik, Tushie, Ex-Officio member Todd Bornhauser - Executive Director - Lakeville Area Chamber of Commerce. Members Absent: Comms. Schubert, Smith, Ex-Officio member Robert Erickson -City Administrator Others Present: Staff present: David Olson, Community & Economic Development Director; Amanda Schwabe, Economic Development Coordinator. 1. Call Meeting to Order. Chair Matasosky called the meeting to order at 6:05 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve September 23,2003 Meeting Minutes • Comm. Emond stated that he was present at the September 23, 2003 meeting. Motion 03.16 Comms. Miller/Tushie moved to approve the minutes of the September 23, 2003 meeting with the above stated change. Motion carried unanimously. 3. 2004 CDBG Application Mr. Olson stated that every year the Dakota County Community Development Agency (CDA} receives Community Development Block Grant (CDBG) funding from the federal Department of Housing and Urban Development (HUD). These funds are to be used by communities for projects that either benefit low to moderate- income persons or eliminate slum and blight. The CDA has indicated that Lakeville can expect approximately $116,177 in 2004, which is approximately $10,000 more than the City received in 2003. Mr. Olson shared that the Downtown Code Improvement program and clearance and demo of blighted buildings have been the two activities funded with CDBG funds this past year. • He stated that Lakeville will carry over approximately $50,000 from the Downtown Code Improvement Program and $15,000 from the Clearance of Blighted Buildings Program from 2003 to 2004. Funds carried over from 2003 will cover Spring 2004 projects until 2004 money is allocated in June. 1 Mr. Olson shared that he is hopeful that one or two projects will come forward in 2004. He suggested continuation of two programs in 2004, Downtown Code • Improvement and Clearance and Demo of Blighted Buildings that were funded in 2003.. Comm. Bornhauser asked for clarification that the 2004 application is for $116,000 and Lakeville will have an extra $68,000 carried over? Mr. Olson answered Comms. Bornhauser by saying yes, the HUD CDBG Program is a program that requires the money to be spent in a timely manner. Typically HUD does not want cities to have more than 1.5 years of funding in an account at any time. Comm. Bornhauser asked if the money could only be used for "bricks and mortar" projects? Mr. Olson responded by saying no, some cities use the money for funding public service activities. Comm. Pogatchnik asked if we have the $50,000? Mr. Olson stated that the CDBG funds are a reimbursement program. Comm. Pogatchnik recommended information about the CDBG program be • published in the Messages page. Comm. Matasosky stated that these numbers were mentioned at the Partnership and Progress: Our commitment to Historic Downtown Lakeville presentation to the DLBA, but that many people may not be aware of the CDBG program and the type of projects being funded. Mr. Olson shared that this program still has political support in Washington and that private investment is typically 1.5 to 2.0 times more than the public investment. Comm. Tushie asked if CDBG funds could be used for a Farmer's Market structure? Mr. Olson responded that under CDBG guidelines, in order to be eligible, the project has to demonstrate that slum or blight was removed or that the project is benefiting low-moderate income individuals. Comm. Tushie stated that a Farmer's Market structure was part of the design guidelines. In the Design Guidelines, the structure was located near the visitor's bureau on the old depot site by Enggren's Market and Main Street Manor. Comm. Bornhauser asked if that meant closing the road? . Comm. Tushie stated that he didn't believe the City was opposed to closing the road at that time. He shared that the Farmer's Market structure is a good way to revitalize the downtown. It would bring excitement and could be used all year long. Mr. Olson stated that John and Jerry Enggren own the existing unpaved parking lot. 2 Comm. Matasosky asked if the City has received any proposals by other businesses interested in using CDBG funds? • Mr. Olson stated that Dairy Delite is considering doing some improvements. The VFW has also indicated that they are interested in removing the smaller house closest to the VFW. The two houses owned by the VFW on that block are the last residential structures in a two to three block area that is predominantly commercial. He shared that staff will do research on the CDBG items that have been discussed for the January meeting. Comms. Brantly asked if people would object to spending CDBG money elsewhere rather than downtown? Mr. Olson shared that the City Council, EDC and others have committed to maintain and improve the historic business district that is unique to most. suburbs. Comm. Brantly asked if there was space available if someone wanted to bring in a unique business? Mr. Olson informed the EDC that the downtown is at 95-98% occupancy. Redevelopment will have to occur to make more space. Comm. Pogatchnik said that it is good for the community to hear about CDBG funds in case someone else comes forward with a plan that shows there is a better project • outside of the downtown. He stated that 95-98% occupancy is a pat on the back for City staff. Downtown looks better now than it did ten years ago. Comm. Bornhauser stated that we would have to establish criteria to determine which project, in which location is best. Mr. Olson stated that there will come a day when retail centers outside of the downtown will be in need of redevelopment. Motion 03.17 Comms. Pogatchnik/Emond moved to continue using CDBG funds for the Downtown Code Improvement program and demo and clearance of slum and blight projects for 2004. Motion carried unanimously. 4. Update on Status of Strategic Plan 2003 Work Program and discussion of Work Program for 2004. The 2002-2004 Strategic Plan for Economic Development is a three-year plan that was recommended by the EDC and approved by the City Council in December of 2001 to guide the City's economic development efforts over the next three years. This approval included a work program for the first year and corresponding goals to be pursued by the EDC in 2002 and a subsequent work program was approved for 2003. • The work program goals were derived from reviewing the four Strategic Work Areas that the EDC identified in the 2002-2004 Strategic Plana This work plan was 3 reviewed by the EDC at their meetings in January and February of 2003 and approved by the City Council in March. • Mr. Olson informed the board that staff is working on the work program for the 3"d year of the three-year strategic plan. He gave a brief summary of the accomplishments and achievements associated with the work program goals for 2003. The first work program goal was: "To inform the residents of the benefits of commercial/industrial development." The Spotlight on Business program continues with success. The City completed work with Himle Horner to develop an economic development communication strategy. The City will continue to implement the communication strategy on an ongoing basis. Anew program on Cable Channel i6 entitled "Out & About Lakeville" that features information on new commercial businesses in Lakeville began in November and featured the new Gander Mountain store. Using the cable channel is a proactive way to get word out about new businesses. Comm. Brantly stated that the Cable Channel programming is very good! The second work program goal was 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." One of the primary efforts of • this goal was to evaluate impacts of the legislative decisions in relation to impacts on local units of government and in particular how these decisions may affect efforts to promote economic development. Mr. Olson informed the board that staff is continuing to see record levels of development and that fortunately the City did not have to eliminate staff. He stated that budgetary impacts will not limit the productivity of the Economic Development function. The third work program goal was to: "Encourage the investment of critical business infrastructure." This goal includes the planning and implementation of interchange upgrades as well as the approval and implementation of the East-West Corridor Study, maintaining the relationships developed with telecommunications providers, and continued dialogue with the Airlake Airport Advisory Commission and the Fixed Base Operator. Mr. Olson stated that the necessary City funding for the CSAH 50 Interim Improvement project is in place and the construction plans are in the process of being finalized to allow for the project to be bid in early 2004. He said that the City recently was notified that an application submitted by Dakota County for Federal TEA 21 funding for the CSAH 70 Interchange had the second highest score of all projects submitted in the Expander Category for the Seven County Metro Areas. • Confirmation of this $5.5 million in federal funding is contingent on the expiration of the appeal period during which other projects can appeal their score. He also shared that CSAH 60 improvement plans are being finalized and that this project will go out for bids in early 2004. 4 Mr. Olson shared that progress has also been made on the East-West Corridor Study with a portion of the plan being implemented in 2003 with the construction of . 179`h Street from Cedar to Flagstaff by the developers of the Crossroads project. The fourth work program goal that guides the EDC efforts was to: "Encourage a balance between commercial/industrial and residential tax base." Business retention and expansion efforts including on-site business visits, manufacturers' week activities, and communication methods such as continuing the Airlake Newsletter were identified as proposed efforts to encourage a balanced tax base. Mr. Olson informed the board that the City is on pace to exceed $30 million in Commercial/Industrial building permits in 2003 just as it did in 2002. Mr. Olson stated that an outline had been created and attached to the memo, which was the direct result of discussions between staff and Chairman Matasosky, in an attempt to identify on-going projects and programs that are consistent with the goals and objectives of the current (or previous) Strategic Plan for Economic Development. The outline also identified previous special projects and programs that have been completed and potential future projects and programs that will assist in the implementation of these goals Comm. Matasosky stated that the key is to make sure ongoing projects continue and that current projects continue to be manageable. Comm. Pogatchnik shared that the list of projects in infinite, but staff time is finite. • He continued to say that in the past, the EDC had a very ambitious plan. He would hate to see the EDC going in so many directions that it does not accomplish meaningful objectives. Comm. Pogatchnik suggested that with the success of the commercial/industrial businesses in the last few years, maybe now should be a time of maintenance. Comm. Brantly recommended that a focus on marketing for non-chain restaurants should be a priority. He stated that Lakeville has high demand, high incomes and a high population. Comm. Matasosky asked if the City was doing a community survey in 2004? Mr. Olson stated that the funds for the community survey were eliminated from the 2004 budget. Comm. Tushie recommended continuing to be proactive and going after what the EDC/City wants. Work now for what the EDC/City's economic development objectives will be for the next several years. Comm. Matasosky stated that the EDC will have to prioritize. Mr. Olson informed the board that the department has money set aside to bring in a . facilitator to shape discussion for the 2005-2007 Strategic Plan for Economic Development. He stated that in July/August staff would start the 2005-2007 Strategic Plan planning process. 5 Comm. Matasosky shared that many of the projects that were planned five years ago are being implemented today. • Comm. Emond stated that the EDC needs to prioritize what programs and projects to pursue. Comm. Tushie shared that Lakeville could consider more in the way of creative development. He stated that the City could change the zoning of areas to allow for different things to happen. Today, large site projects are happening if a city creates the zoning to allow for mixed-use developments. Comm. Matasosky stated that the City would have to identify and pre-determine areas for mixed-use developments. He shared that the incentive for developers would be the flexible zoning for mixed-use. All types of affordable housing that would benefit all age groups and financial statuses could be created. He continued by saying incentives such as housing revenue bonds could be considered. Mr. Olson stated that the City will be redoing its comprehensive plan by 2008 and that currently townhomes are being built as fast as single-family homes. Comm. Tushie stated that the city of Ediria has a good mix of affordable housing and other housing. Mr. Olson stated that staff would attempt to incorporate the various comments and • suggestions in preparing a draft 2004 Work Plan to be reviewed at the January EDC meeting. 5. Update on Eureka Township Annexation in Airlake Airport Mr. Olson stated that after three months of discussions and negotiation with Eureka Township, the City reach agreement with the Township on an Orderly Annexation Agreement for the annexation of 2.37 acres of Airlake Airport that is currently located in Eureka Township. Eureka Township approved the annexation at their November 10, 2003 meeting. City Council approved the annexation at their November 17, 2003 meeting. Mr. Olson explained that in the agreement that was reached, the Township will continue to receive a declining portion of the current annual personal property taxes of $443 per year paid by the Aircraft Resource Center and will also receive one half of the building permit fee, which is estimated at $3,200, for the proposed 12,000 hanger addition. He stated that the annexation also resulted in the right-of-way for Hamburg Avenue south of 220th Street, to be located all within the City. Prior to the annexation, the west half of Hamburg Avenue south of 220th Street was in the City and the east half • was in Eureka township. Mr. Olson shared that the Aircraft Resource Center has indicated that they will hold off on breaking ground for the hanger addition till next year. The addition will allow for more commercial hanger space once the expansion is completed. 6 Mr. Olson informed the board that staff would be interested in holding an EDC meeting at the Airlake Airport FBO when the hanger expansion has been completed. • 6. Overview of Dakota County Economic Summit Ms. Schwabe stated that the 2003 Dakota County Economic Development Summit was held at DCTC on November 6th. Bill Lucking, Executive Director of Progress Plus and current President of the Economic Development Association of MN (EDAM) welcomed Economic Development professionals to the event. She shared that Ed Barlow, Futurist from Creating the Future, Inc. was the keynote speaker. Mr. Barlow spoke on how to create a competitive economic and workforce advantage. Comm. Matasosky stated that Mr. Barlow had interesting insights on industry cells and new technology. He shared that the information presented was very relevant. Afternoon activities for the event focused on formulating future economic and workforce development initiatives in small groups. Ms. Schwabe stated that Bill Coleman, Executive Director for Dakota Future, Inc. (formerly the Dakota County Economic Development Partnership), was also present at the event and spoke briefly about Dakota County's new private-public economic development organization. Mr. Olson informed the board that the City is not active at this point in Dakota Future, Inc. He shared that the reality is that there is no money in the budget to participate in this new organization. Ms. Schwabe shared that Council member Wulff, Chair Matasosky and Comm. Bornhauser were also at the event. 7. Director's Report Spotlight on Business Mr. Olson stated that Comms. Miller, Erickson and Pogatchnik presented the November and December Spotlight on Business participants: United Products Corporation, Lakeville Professional Plaza and Mendell Machine and Manufacturing, Inc. Mr. Olson mentioned that as part of the retention program, staff would like to bring EDC members out to tour facilities. A memo attached to item four of the packet listed the businesses that have either participated in the Spotlight on Business program or have declined as well as a short list of possible 2004 participants. Met Council 2030 Regional Development Framework • Mr. Olson stated that the City has completed a detailed review of the proposed 2030 Regional Development Framework that was released for public comment by the Met Council on October 15, 2003. The City acknowledged improvement from the last 2030 Blueprint but also identified a number of areas of concern with the current 7 document. These concerns were addressed in a letter from Mayor Johnson to Met Council Chairman Peter Bell. Council members Wulff and Rieb along with City . Administrator Bob Erickson delivered the letter to Chairman Bell and the Met Council and provided testimony at the December 3`d public hearing. Comm. Bornhauser reminded everyone that the District i6 Metropolitan Council Member Brian McDaniel will be the guest speaker for the Lakeville Area Chamber of Commerce General Membership Luncheon on December 16, 2003. Ms. Schwabe stated that she would forward the information on the event to EDC members. New Business Mr. Olson presented Comm. Matasosky with his perfect attendance award from the Advisory Appreciation Holiday Parry on December 3, 2003. 7. Adjourn The meeting was adjourned at 7:30 p.m. Respectfully submitted by: At ted to: `Amanda Schwabe, R. T. Brantly, Secretary Economic Development Coordinator • • 8