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HomeMy WebLinkAbout04-23-02-02 City of Lakeville Economic Development Commission Meeting Minutes April 23, 2002 Marion Conference Room, City Hall Members Present: Vogel, Brantly, Emond, Matasosky, Pogatchnik, Schubert, Tushie, Smith, Ex-Officio member Todd Bornhauser, Ex-Officio member Robert Erickson. Members Absent: Commissioners Miller, Erickson. Others Present: Staff present: David Olson, Community & Economic Development Director; Ann Flad, Economic Development Coordinator. 1. Call Meeting to Order. Chair Vogel 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 26, 2002 Meeting Minutes. Motion 02.09 Comms. Emond/Shubert moved to approve the minutes of the March 26, 2002 meeting. Motion carried unanimously. 3. Introduction of new EDC member Tom Smith Mr. Olson introduced Tom Smith to the Economic Development Commission. Mr. Smith has been appointed to the EDC by the City Council for the remainder of a three-year term that expires on December 31, 2002. Mr. Smith indicated that he has been active in the Lakeville business community over the past 8 years, is a past President of the Lakeville Area Chamber of Commerce, and is the President of Brackett's Crossing Country Club. Commissioners then introduced themselves to Mr. Smith. 4. 2002-2004 Strategic Plan: A.) Work Plan Goal #1: Educate residents on benefits of Commercial/Industrial (Cfl) Ms. Flad indicated that the C/I Subcommittee met on April 22, 2002 in the Marion Conference Room of City Hall. The subcommittee was formed to address Goal #1 of the Economic Development 2002 Strategic Work Plan "to inform and educate residents on benefits of C/I base to gain community support and appreciation for • business growth." Specifically the subcommittee is charged with putting together Economic Development Commission Meeting Minutes April 23, 2002 information to be used to inform residents on the benefits of C/I, include identifying • targeted ratios and providing comparative information from other cities as well as different C/I areas within Lakeville. At the Subcommittee's January meeting, staff was requested to obtain the following comparative information for the cities of Lakeville, Plymouth, Eden Prairie, Eagan, Burnsville, and Woodbury: • Operating Budget Per Capita • Percent of tax exempt property • Percent of land designated for various land uses (i.e.: commerciaUindustrial, residential, public/tax exempt.) • City and total property taxes on a $250,000 home (payable 2002) Ms. Flad indicated that Apple Valley was not chosen as a community to use for comparison purposes due to their extensive use of Tax Increment Financing (TIF), whereas Lakeville and the other communities selected have s much lower use of TIF. Comm. Pogatchnik added that all of the communities in the comparison have a substantial amount of interstate frontage. Ms. Flad explained that information from each City's Comprehensive Plan was used to develop a chart depicting the percent of land designated for commercial/industrial • use, residential use, and public/tax exempt use. According to Lakeville's Comprehensive Plan, the City of Lakeville has designated 13% of its land as Commercial/Industrial through 2020. Eagan, Plymouth, and Woodbury also designated 13% of the land in their communities for commercial/industrial through 2020 also. Only Eden Prairie plans to have less commercial/industrial land in 2020, at 12.08%, while Burnsville has designated 21.19% of its land area as Commercial/Industrial through 2020. The Comprehensive Plan also indicates that the City of Lakeville has designated 53.9% of its land area for residential use through 2020. This is comparable to the amount of land designated for residential use in Plymouth (52.95%) and Woodbury (60.7%). It is also greater than the average (45.1 amount of land communities designated for residential use through 2020. Lakeville has the smallest amount of land (10%) designated for public/tax exempt purposes amongst the communities examined. The average amount designated for this purpose amongst the communities examined was 18.17%. However, it should be noted that Lakeville has 989 acres of water (4.1 % of the City's total acreage) and 2,535 acres (10.5%) of land designated for right-of-way in the 202 Comprehensive Plan Update. Mr. Feller explained the chart that was prepared which shows each city's operating • budget per capita and calculated taxes that would be paid in each city on a $250,000 2 Economic Development Commission Meeting Minutes April 23, 2002 home. Mr. Feller used information from County Assessors' Offices to develop the • chart. Residents of Lakeville pay the lowest amount of total taxes ($2,718) on a $250,000 home compared to other cities in the study. Mr. Feller explained that some of the significant factors affecting tax levies include, but are not limited to local government fiscal management policies, state aid for property tax relief, fiscal disparities, tax base composition, state education aids, and municipal liquor fund contributions. The City of Lakeville's per capita 2002 Tax Levy is the lowest amongst all cities surveyed, at $252.61 per person. Lakeville also is amongst the lowest in per capita expenditures. The Subcommittee questioned whether the residents of Lakeville realize that taxes are lower in Lakeville than in other communities. Mr. Feller reported that the City presents information in the ThisWeek Life & Times each November in advance of the Truth In Taxation hearing. The Subcommittee discussed that maintaining or improving Lakeville's positive tax position requires achieving commercial/industrial development as outlined in the Comprehensive Plan. Comm. Pogatchnik also indicated that the Subcommittee felt the messages should • be conveyed by the EDC rather than from the City of Lakeville. The Subcommittee will also help residents recognize that infrastructure improvements can be implemented while maintaining a positive tax position relative to other communities. The Subcommittee determined that they would educate the community on the benefits of C/I development in three stages: 1. Educate the residents that the City has been very responsible in fiscally managing the City. 2. Educate the residents about the proportion of C/I to residential development that is called for in the Comprehensive Plan. 3. Educate the residents about the future needs of the community and the benefits that C/I development will accrue toward those needs. Commissioners discussed potential channels to distribute the message. It was suggested that a summary of the Subcommittee's research be provided to the school districts for their use. Other suggestions for disseminating the information included the Messages Page of the ThisWeek Life and Times, newcomer packages, mailings, television commercials and regional media such as the Star Tribune. The Subcommittee recommended that amarketing/public relations consultant be enlisted to develop and implement a plan to achieve the above three stages of educating the public. Mr. Olson will be providing the Subcommittee with information • on potential consultants at the next Subcommittee meeting in May. 3 Economic Development Commission Meeting Minutes April 23, 2002 • The Subcommittee will bring these recommendations to the EDC and the City Council once a proposal by a marketing/PR consultant has been obtained. B.) Work Plan Goal # 3: Encourage investigation of critical business infrastructure Mr. Olson reported that City staff have met with Springsted regarding options for funding the City's share of interchange improvements for the I-35 interchanges located at County State Aid Roads 60, 70, and 50. Springsted has been provided with most current cost estimates available for the three interchanges. While the costs for CSAH 70 and CSAH 50 are still preliminary, the current total cost for all three interchanges is estimated at $40,070,000. The current estimated City share is $19,800,000 for the three interchanges. Springsted will be working on preliminary analysis of potential funding sources to finance the City's share of these interchanges, including: • Municipal State Aid (MSA) funds (both current and Advance Encumbrance amounts) • Tax abatement (both City and County) • EDA Property Tax Levy • Special Assessments • Special Taxing District Bonds • Water and Storm Sewer Trunk Funds Mr. Olson reported that progress has been made to determine the feasibility of using several of these various financing sources to fund the City's portion of the three interchanges. However considerable study and analysis is still necessary. It is anticipated that preliminary information should available to discuss with the EDC in the near future. Ms. Flad reported that the High Tech Subcommittee met on April 3, 2002 at 5:30 in the Marion Conference Room at City Hall. At the Subcommittee meeting, Focal Communications provided information about the telecommunications services they can provide to businesses in Lakeville. The Subcommittee also reviewed the status of their progress and identified additional activities to accomplish their goals, including maintaining quarterly contact with telecommunications service providers, maintaining contact with Dakota County Technical College, consideration of forming a technology users group in Airlake Park, and conducting an annual event that focuses on technology or telecommunications in Lakeville. Staff will implement the activities identified and the Subcommittee will meet on an as-needed basis in the future. Additionally, at the January 29, 2002 EDC meeting, Commissioners moved "to direct • staff to pursue E-commerce Certification with the assistance of Frontier on the basis a Economic Development Commission Meeting Minu[es April 23, 2002 that it is consistent with Goal #3 of the City's 2002-2004 Strategic Plan for Economic • Development." Staff met with Margaret Olson of the Department of Trade and Economic Development on April 8, 2002 to review a draft of the E-Commerce Readiness application. The formal application is being submitted by mail and Ms. Olson will present it to DTED Commissioner Rebecca Yanisch and other DTED staff for approval. An event will be scheduled this summer at the Lakeville Area Arts Center at which DTED will formally present the City of Lakeville with E-Commerce Readiness Certification. Frontier is also coordinating an educational seminar that 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. The City of Lakeville has been provided with fifteen tickets to this event. EDC members, Telecommunications members and staff are invited to attend. 5. Ordinance concerning Official Mapping; Ordinance concerning Official Controls City Administrator Robert Erickson presented information on the City Council's April 15, 2002 resolution enacting an ordinance to protect the planning process. Mr. Erickson explained that the interim ordinance temporarily prohibits the approval of • new residential single family and two-family homes as well as townhomes and apartments. The ordinance will not affect building permits or projects that are being processed or were previously approved. Senior housing, low and moderate income rental housing, manufactured homes, churches and schools are exempt. The interim ordinance will be in place until official growth controls have been adopted or April 14, 2003, whichever occurs first. The interim ordinance will allow the City time to complete a comprehensive review and update of the City's zoning ordinance, a review of growth management practices, and a review and update of the City's comprehensive sanitary sewer and water plans. Mr. Erickson reported that 30% of the single family home permits in Independent School District 194 in 2001 were outside of the City of Lakeville. Lakeville is seeing an increase in townhome developments. Mr. Erickson also indicated that the 1998 Strategic Growth Management Task Force concluded that the City cannot prudently sustain more than 400-450 housing starts per year, yet nearly 3,892 lots are being platted currently. Lakeville averages nearly 175 townhome starts. At Apple Valley's 2000-2001 absorption rate, the City of Lakeville already has enough townhome lots to accommodate market demand for 4-6 years. Mr. Erickson reported that the City Council considered requiring developers to complete their developments in phases, but the Council felt it would be unfair to impose a phasing requirement when some developments are relatively small and • s Economic Development Commission Meeting Minutes April 23, 2002 would only be able to complete a few units, while other developments are quite large • and could complete a substantial number of units in one phase. Comm. Matasosky inquired who townhome developers are marketing toward. Comm. Emond indicated that townhome developers are focusing on young families and first time homebuyers as well as people whose children have left home. Comm. Smith questioned whether the public would be provided with notification before the issue is reconsidered upon the expiration of the interim ordinance. Mr. Erickson indicated that the public would be informed 30 to 60 days prior to the expiration of the interim ordinance. City Administrator Erickson also provided Commisisoners with information regarding the City Council's interim ordinance temporarily prohibiting development and new construction in the area east of the I-35/Co. Rd. 50 interchange. The interim ordinance was adopted to allow the City time to study and officially map future road alignments. The ordinance will be in effect until the adoption of official maps and other official controls or until April 14, 2003, whichever occurs first. Mr. Erickson explained that the Dakota County Transportation Department has stated that County Road 50 in the I-35/Co. Rd. 50 area is at capacity today. Development in this area is difficult due to the location of access points and the road being at capacity. Additionally, there is no County funding in place to improve the roadway • within the next five years. The interim ordinance will provide time for the City to hire a consultant to develop road alignment designs that enhance traffic flow. Temporarily prohibiting development in the area prevents property owners from investing money into projects in areas that the City may ultimately need to aquire as right-of-way for realigned streets. The temporary prohibition on development in the area coincides with the EDC's interchange financing study. Once new road alignments are designed and the area is officially mapped, funding for the interchange upgrades will be pursued. 6. Director's Report. Mr. Olson reported that the 20 commercial, industrial and institutional projects that either have been proposed or are pending in Lakeville are not affected by the interim ordinance prohibiting development east of I-35/Co. Rd. 50. The commercial and industrial projects for which plans have been submitted include a total of 186,000 square feet. This does not include the proposed Crossroads project proposed at Cedar and Dodd, which contains approximately 182,000 square feet commercial space. The next steps for this project will include neighborhood meetings, review of a concept plan by the Planning Commission and City Council, and completion of an EAW. In addition to Crossroads, it is anticipated that additional commercial uses to be located in TimberCrest will be announced by Avalon in the near future. • Economic development Commission Meeting Minutes April 23, 2002 The Dakota County CDA has recently closed on the purchase of the Wren property • along 210th Street according to Mr. Olson. The EDC supported the City's commitment of 2000-2001 Community Development Block Grant funds to acquire the site for the development of an affordable townhome project. The Dakota County Community Development Agency (CDA) will be submitting an application to the Minnesota Department of Trade and Economic Development to do further environmental investigation on the required cleanup of the dump site(s) located on the property. The CDA is also proceeding with submission of applications to the various funding sources to develop their next affordable rental townhome project on the Gilb property adjacent to United Building Center in Lakeville. Mr. Olson reported that representatives of Wells Fargo have indicated that once the car wash/laundromat property in downtown Lakeville is conveyed to them they would undertake the necessary building demolition and cleanup required on this site and construct additional off-street parking on the site. Additionally, Mr. Olson reported that three of the four commercial spaces in Main Street Manor have been leased and two have been occupied. The new tenants that currently occupy the building include the State Farm Insurance agency that was previously located across the street. The second tenant that has leased space in the building is ATA Karate, which also has a location in Burnsville. New Market Bank is the third tenant that agreed to lease space and will undertake leasehold improvements in the near future. • HOM Furniture's grand opening and silent auction to benefit the Lakeville Area Arts Center was held on Saturday, April 13, 2002. Approximately 600 people attended the event including a number of EDC members and approximately $18,000 was raised for the Art Center through the silent auction. 7. Adjourn. Chair Vogel adjourned the meeting at 7:59 p.m. Respectfully submitted by: Attested to: ~v/ ~ ~ . Ann Flad, Recording Secre ary R. T. Brantly, Secretary •