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HomeMy WebLinkAbout03-26-02-02 City of Lakeville Economic Development Commission Meeting Minutes March 26, 2002 Marion Conference Room, City Hall Members Present: Bob Brantly, Jim Emond, Jerry Erickson, Jack Matasosky, Dick Miller, Jeanne Schubert, Gary Tushie, City Administrator Robert Erickson, Ex-Officio member Todd Bornhauser. Members Absent: Bob Vogel, Barry Pogatchnik. Others Present: Ben Coons, Advanced Wireless Communications, John O'Keefe, Airlake Hanger Owners' Association representative; Steve Wentworth, Airlake Flytline Services. Staff present: David Olson, Community & Economic Development Director; Ann Flad, Economic Development Coordinator. 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, 20195 Holyoke Avenue, • Lakeville, Minnesota. 2. Approve February 26, 2002 Meeting Minutes. Motion 02.07 Comms. Emond/Erickson moved to approve the minutes of the February 26, 2002 meeting. Motion carried unanimously. 3. Advanced Wireless Redevelopment Agreement. Vice-Chair Matasosky noted that because of his relationship with Advanced Wireless Communications he would excuse himself from discussion and voting on the Private Contract for Redevelopment. Mr. Olson indicated that City staff and the City's attorney have been working with Advanced Wireless Communications (AWC) regarding their purchase of Lot 2, Block 1, Fairfield Business Campus 2"d Addition from the City. The City will sell the parcel to AWC using captured tax increment to write down the cost to AWC. AWC will build their corporate headquarters on the lot. Finance Director Dennis Feller has reviewed AWC's financials and has indicated that the company demonstrates consistent growth and has the financial and managerial ability to undertake the project. Mr. Olson reviewed the proposed Private Contract for Redevelopment. A change • was made to the information provided in the EDC packets regarding the Contract: the date of substantial completion has been changed from November 1, 2002 to Economic Development Commission Meeting Minutes March 26, 2002 • December 31, 2002 in order to ensure that the project will be completed on time. Comm. Erickson asked Mr. Coons of AWC whether he was comfortable with the time frame. Mr. Coons responded that his discussions with the City and with his legal counsel have reassured him that the time frame is adequate to complete the project. The Contract states that AWC will construct a 23,000-sq. ft. two-story building. The Fairfield Architectural Review Committee, which is comprised of all property owners of the Fairfield Business Association, has approved the proposed building. AWC has also agreed that the minimum market value of the property be set at $1,575,000 for the duration of outstanding bonds in the TIF district, which is approximately 20 years. It is estimated that AWC will generate $57,603 per year in taxes, with $18,536 of that being captured as increment and used primarily to pay the debt service on bonds issued for the TIF district. Comm. Emond questioned whether the minimum market value and the subsequently generated increment are transferable in the event of the property's sale. City Administrator Erickson indicated that they are transferable for the life of the TIF district. The new Business Subsidy Laws require that job creation goals be a part of any business subsidy or Redevelopment Agreement. According to the proposed Redevelopment Agreement, AWC agrees to create 14 jobs within two years, with • wage level goals of $30,000 per year. Mr. Olson stated that default of the Agreement would occur if there was a failure to meet job creation goals, failure to maintain operations at the facility for five years, or failure to pay property taxes. In the event of a default of the agreement, AWC would be required to repay the City $232,900 (the amount the City has provided in subsidy (land write down), based on the County Assessor's determination of market value for the property.) Park dedication fees ($14,434) and storm sewer area fees ($20,842) will also be paid by AWC. By entering into the Private Contract for Redevelopment, AWC also agrees to the City's standard provision about insurance and condemnation, prohibitions against assignment, transfer and indemnification, and determination of events of default. Motion 02.08 Comms. Emond/Erickson moved to recommend that the City Council enter into the Redevelopment Agreement with Advanced Wireless Communications. Comm. Matasosky abstained, motion carried. 4. Update on the purchase of Flyteline Services: Steve Wentworth: Vice-Chair Matasosky indicated agenda item # 4 regarding the sale of Flytline Services would be placed at the end of the agenda. • 2 Economic Development Commission Meeting Minutes March 26, 2002 • 5. 2002-2004 Strategic Plan A. Work Plan Goal #1: Educate residents on benefits of Cfl Ms. Flad indicated that the C/I Subcommittee requested information on operating budgets per capita, percent of property that is tax exempt, percent of land designated for various land uses (i.e.: commercial, industrial, residential, public or tax exempt) and city and total property taxes on a 250,000 home. This information was requested for the following communities: Lakeville, Plymouth, Eden Prairie, Eagan, Burnsville, and Woodbury. According to Finance Director Dennis Feller, Counties must legally have this information available by March 31, 2002. The Subcommittee will convene in April once these figures are gathered. Ms. Flad reported that two businesses have been featured in the City Council's new "Spotlight on Business" program. Information about the featured business is presented by an EDC member and includes the dollar amount of taxes paid by that business. On March 4, 2002, Progressive Rail became the first business to be highlighted in the "Spotlight on Business" series. EDC Chair Bob Vogel introduced the program. Tim Eklund, Vice President of Industrial Development for Progressive Rail was present to receive a framed certificate of appreciation. Americlnn was highlighted at the March 18, 2002 City Council meeting. EDC member Jim Emond introduced Americlnn manager Dave Franks and presented information on the motel. Jack Matasosky will introduce Verified Credentials at the April 1, 2002 City Council • meeting, and Todd Bornhauser will introduce Toro and Con Agra at the April 15"' City Council meeting. Comm. Jerry Erickson suggested that information be printed in the newspapers regarding the businesses that have been spotlighted. This would increase the audience for the Spotlight on Business Program and is consistent with Goal #1 of the Economic Development 2002 Strategic Work Plan which is "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth." City Administrator Erickson suggested that a press release be sent to the Lakeville This Week Life & Times and the Sun Current regarding each Spotlight Business. A.) Work Plan Goal # 3: Encourage investigation of critical business infrastructure Ms. Flad indicated that several meetings have been held between Springsted, Inc. and City staff to compile information on various funding sources for Lakeville's interchanges. When this information has been compiled and analyzed, updates will be provided to the EDC. The purpose of the High Tech Subcommittee was also reviewed. At their September 26, 2000 meeting, the EDC authorized the formation of a High Tech Subcommittee to . explore the development of a High Tech Business Park. Development of a High 3 Economic Development Commission Meeting Minutes March 26, 2002 • Tech Subcommittee is consistent with the EDC's economic development strategies, and specifically addresses the following: 1. "Research and identify fiber optics and other emerging technologies," as identified in the 2000-2001 Strategic Plan for Economic Development. 2. "Encourage additional office park/business campus development to achieve desired business mix,' as identified in the 2000-2001 Strategic Plan for Economic Development. 3. "Attract and retain employers that will utilize the skills of residents," as identified in the 2000-2001 Strategic Plan for Economic Development. 4. "Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for the long term" as identified in the 2002 Strategic Work Plan. Commissioners Bob Brantly and Dick Miller joined Telecommunications Commission members Doug Thompson and Robin Selvig to form this subcommittee. The committee held their first meeting on April 3, 2001 and identified three goals as listed below: 1. Develop a High Tech Business Park (HTBP) 2. Educate the business community on telecommunications options 3. Encourage additional telecommunications services to support Lakeville's existing business • The High Tech Subcommittee will convene by mid-April to review the status of their goals and determine the next steps for the subcommittee to undertake. Additionally, at the January 29, 2002 EDC meeting, Commissioners moved "to direct staff to pursue E-commerce Certification with the assistance of Frontier Communications on the basis that it is consistent with Goal #3 of the City's 2002- 2004 Strategic Plan for Economic Development. Responses to the survey questions are being finalized and will be delivered to Margaret Olson of the Department of Trade & Economic Development in April. Staff will work with Ms. Olson on the coordination of an event at which the City of Lakeville will formally receive E-Commerce Certification. This event is tentatively anticipated to be held in June at the Lakeville Area Arts Center. Frontier is also coordinating an educational seminar for community leaders which is designed to educate community leaders on technology terms and innovations. They have retained Bill Coleman of Minnesota Technology (formerly of the Dept. of Trade & Economic Development) to present this seminar on April 30, 2002. EDC members and other community leaders will be invited to attend. • 4 Economic Development Commission Meeting Minu[es March 26, 2002 • 6. Director's Report. Mr. Olson reported on the annual Dakota Electric Association -Partners in Progress Event attended by Mayor Bob Johnson, Council Member Rieb, City Administrator Bob Erickson, Mr. Olson and Economic Development Coordinator Ann Flad. The event was held on March 7, 2002 in Eagan. This DEA sponsored annual event highlights the development achievements of the cities in Dakota County that are served by DEA. Each city provides DEA with information about their development activities for the previous year. Lakeville issued building permits with a total valuation of $138,867,465 in 2001 which was the highest of any city in Dakota County. The total valuation for commercial and industrial building permits issued in Lakeville in 2001 was $28,497,465 which was second only to the City of Eagan which issued permits totaling $67,509,800. This event and report provides an excellent comparison of the development activity in Dakota County communities. City Administrator Erickson added that Apple Valley produced nearly the same number of houses as Lakeville, however Lakeville has nearly twice the valuation due to the development of high density housing in Apple Valley. Additionally, Mr. Olson reported that a customer service training event was conducted on March 6, 2002 at the City Water Treatment Plant for all City employees. The training was held in two half-day sessions that allowed approximately 165 full-time City employees to attend either the morning or afternoon session. The training seminar was facilitated by Petra Marquart, Customized Training Coordinator for Hennepin Technical • College. The EDC was represented by members Vogel, Erickson, Matasosky, Pogatchnik, and Schubert. Several local business people also attended. The consensus of nearly all that attended the training was that it was helpful and applicable to all City employees and business people alike. Funding for this training seminar was provided as part of the City's Strategic Plan for Economic Development. Mr. Olson also indicated that City staff is updating its database of information on local businesses. The City mailed 721 postcards to known local businesses requesting verification or updated information on each business. As of March 15t", the City received responses from 339 businesses. Staff will continue to make the necessary changes to the database as more responses are received. 4. Update on the purchase of Flyteline Services: Steve Wentworth Steve Wentworth, the new owner of the Fixed Based Operator (FBO) Airlake Flytline Services Inc., was present to discuss plans for the FBO at Airlake Airport. Mr. Wentworth explained that he purchased the hanger, chalet, pumps, and other property of the FBO through a competitive bidding process. The Metropolitan Airports Commission (MAC), as owner and manager of the Airport, then entered into a 20 year ground lease with him. . Mr. Wentworth provided the EDC with a copy of a letter that is being sent to the owners of all aircraft based at Airlake Airport. Mr. Wentworth indicated that he intends to provide s Economic Development Commission Meeting Minutes March 26, 2002 full-service fueling at the airport, provide a new flight planning/weather room, remodel the bathrooms and other features of the main building, offer additional hanger space, and provide a large space for corporate aircraft. Additionally, extended fueling hours and a rebate program will be implemented. Ciry Administrator Erickson indicated that the Mayor has requested that the Airlake Airport Advisory Committee be convened and meet on a regular basis. John O'Keefe of the Airlake Hangers' Association was also present. Mr. O'Keefe indicated that there are 85 hanger owners in the Airlake Hangers' Association, and he is the representative from the Association that sits on the Airlake Airport Advisory Committee. City Administrator Erickson also reported that the Eureka Township Board expressed oposition to the development of a crosswinds runway in the portion of Airlake Airport that is within the Eureka Township boundaries. Most corporate jets can be accommodated at Airlake Airport with a 4,100-ft. runway, according to Mr. Wentworth. On rare occasions an aircraft may not be able to land at Airlake Airport when an insurance company requires they land at a longer runway. Mr. Wentworth indicated that he is not aware of any requests to lengthen the runway to accommodate a specific aircraft. Mr. Wentworth also indicated that he has requested that MAC give him an opportunity to • make Airlake Flytline Services Inc. a profitable business before they consider authorizing a second FBO at Airlake Airport. Mr. Wentworth invited the EDC to hold a meeting at the Airlake Flytline Services facility in May or June once the renovations are done. 7. Adjournment. The meeting was adjourned at 8:06 p.m. Respectfully submitted by: Attested to: _ . , Ann Flad, Recording Secretary R. . Brantly, Secretary • 6