Loading...
HomeMy WebLinkAbout06-25-02-02 • City of Lakeville .Economic Development Commission Meeting Minutes June 25, 2002 Lower Level, Lakeville Area Arts Center 20965 Holyoke Avenue Members Present: Vogel, Emond, Pogatchnik, Schubert, Tushie, Smith, Miller Ex- Officio member Todd Bornhauser. Members Absent: Commissioners Brantly, Matasosky, Erickson. Others Present: Staff present: David Olson, Community & Economic Development Director; Ann Flad, Economic Development Coordinator, Jodi Braun, representative for John and Jerry Enggren. 1.Call Meeting to Order. Chair Vogel called the meeting to order at 7:00 p.m. in the Lower Level of the Lakeville Area Arts Center, 20965 Holyoke Avenue, Lakeville, Minnesota. • 2.Approve Aprif 23, 2002 Meeting Minutes. Motion 02.12 Comms. Tushie/Emond moved to approve the minutes of the April 23, 2002 meeting. Motion carried unanimously. 3.B.) E-Commerce Certification Event Ms. Flad reported on the E-Commerce Certification Event that was held immediately prior to the EDC meeting. Commissioner Rebecca Yanisch of the Department of Trade & Economic Development formally presented Mayor Johnson with the certification. EDC Chair Bob Vogel and Telecommunications Chair Greg 5tatmann introduced members of their respective advisory committees and the High Tech Subcommittee. Dr. Ron Thomas, President of Dakota County Technical College, provided closing remarks and noted that e-commerce and development of a presence of higher education will make Lakeville competitive with the most desirable communities in the nation. Charter Communications, Frontier Communications, Focal Communications, OneNet USA, and Dakota County Technical College had display tables and provided information to guests regarding the telecommunications services they could provide. It is estimated that more than 60 guests attended the event. Flad also noted that Lakeville's E-Commerce certification was highlighted in an article in the Minneapolis Star-Tribune on Monday, June 17, 2002. This certification "sends a • Economic Development Commission Meeting Minutes Juna 25, 2W2 strong signal to entrepreneurs" said City Administrator Bob Erickson in the article. • Lakeville is only the second metro-area community to receive this certification. E-Commerce Certification was pursued at the recommendation of the EDC at their January 29, 2002 meeting which directed staff 'Yo 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." 4. 2002-2004 Strategic Plan -Work Plan Goal #1: Educate residents on benefits of C/I PR Firm: Mr. Olson reported that Chair Vogel, Ms. Flad and Mr. Olson interviewed iwo PR firms, Himle Horner, Inc. and New School, Inc. Based on the EDC's directive from the April 22, 2002 meeting, the firms were asked to prepare proposals to assist the EDC in developing a plan to educate residents on the following: 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/1 to residential development that is called for in the Comprehensive Plan as compared to other communities. 3. Educate the residents about the future needs of the community and the benefits that C/I development will accrue. • Mr. Olson reported that Mayor Johnson, Chair Vogel, Mr. Erickson and Mr. Olson met to discuss the City's ability to support this initiative with staff and financial resources. The City is currently processing nearly 3,800 residential units and over one million square feet of commercial and industrial development. Mayor Johnson and staff are recommending the EDC adjust the timeframe for this project, with work on developing a plan beginning in October concluding in the first quarter of 2003. Comm. Emond acknowledged that adjusting the time frame for this project would also enable staff to identify funding to pay for the project. Additionally, based on the qualifications of both firms, the interviews that were conducted, and the subsequent preliminary proposals submitted by both firms, it is the recommendation of Chair Vogel and staff that the firm of Himle Horner be invited to the July 30th EDC meeting. The purpose of inviting Himle Horner to the July meeting would be to allow other EDC members to discuss the firm's approach to the project and to develop an agenda~for tasks that would be completed by Himle Horner. Mayor Johnson and staff discussed paying a representative of Himle Horner at the firm's hourly rate for attending this meeting. Comm. Tushie indicated that consultants typically are not paid for meetings to define the scope of the work they will be doing for a client. Comm. Miller suggested perhaps the same option should be offered to New School, Inc. Comm. Smith commented that having a consultant attend a meeting • without pay would not obligate the City or the PR Firm to continue with the project. z Economic Development Commission Meeting Minutes June 25, 2002 • It was the concensus of the Commissioners to direct Chair Vogel and Mr. Olson to discuss this approach further with Mr. Erickson. It was also the consensus that if the consultant was to be paid for his time at a meeting that he spend time prior to the meeting refining his firm's scope and approach to the project. Commissioners will be informed of the outcome of this conversation. Comm. Tushie added that it is crucial that the consultant further define the scope of work prior to the EDC meeting. Commissioners can then provide additional input, thus maximizing the use of the consultant's time at the meeting. Spotlight On Business: Ms. Flad reported that the "Spotlight On Business" program continues to be well received by the businesses featured and by the business community as a whole. Consistent with Goal #1 of the Strategic Work Plan, this program provides a forum to share information on the benefits of having a business base in the community. Information about the featured business is presented by an EDC member and includes the dollar amount of taxes paid by that business. Per Commissioner Jerry Erickson's suggestion, staff contacted the This Week Life & Times. They have agreed to publish press releases regarding the businesses featured in the "Spotlight on Business" program. Comm. Miller introduced Mike Muller of Lakeville Muller Theater, Comm. Pogatchnick introduced Tom Everett of Strout Plastics, Comm. Smith introduced Tim Peterson of • Southfork and Dan Shimek of Hearth Technologies, and David Olson introduced Glenn Haase of Ryt-Way Industries at recent City Council meetings. 4. Consider Concept for Ben Franklin Exterior Code Improvement Project Mr. Olson reported on the Downtown Code Improvement Program that was approved by the City Council at their January 7, 2002 meeting. At that time, the City Council was informed of Jerry and John Enggren's interest in utilizing CDBG funds to address the building code issues on the facade of their building that currently houses the Ben Franklin store. City Building Official Gene Abbott has inspected the condition of the existing building and determined that the majority of the work associated with the removal of the existing facade would constitute a building code improvement. Since January, several meetings have been held with the Enggrens to discuss the program requirements. The Enggrens have also retained the architectural firm of Charles Radloff Architects to prepare a design concept. Mr. Radloff was provided with a copy of the Historic Fairfield District guidelines along with several photographs of new and renovated buildings in the Historic Downtown area and Heritage Commons. The design has been revised to be consistent with the design guidelines, to make it compatible with surrounding buildings, and to make the project financially feasible for the building owners to complete. • 3 Economic Development Commission Meeting Minutes June 25, 2002 • Mr. Olson presented a building facade design concept to the Commissioners. Mr. Olson noted that the building colors in the drawing are not identical to the colors of the building materials that will be used. Mr. Olson explained that the second story is a facade only and usable second floor space is not incorporated in the design. The second story is proposed to be faced with stucco because the building would not support the weight associated with a brick second story. Ms. Braun indicated that the entrance to the building is currently set back from the facade. The proposed new facade would bring the entrance flush with the rest of the building facade. Ms. Braun also indicated that no interior renovation was proposed with this project except addressing the interior floor, ceiling and wall repair associated with making the entrance flush with the rest of the facade. Comm. Pogatchnik questioned whether the Downtown Lakeville Business Association (DLBA) supported the new design. Ms. Braun indicated that she had presented the design to the DLBA and that the DLBA supported the design, Commissioners discussed the impact to the building's tenant, the Ben Franklin store. Floor space will not be lost due to this project. Space will be gained by making the entrance flush with the facade. Mr. Olson and Ms. Flad will be meeting with Ben • Franklin owner Scott Erickson on June 28, 2002 to discuss the project with him further. Mr. Olson encouraged Ms. Braun to share the plans with Scott Erickson and to work with him to ensure his business remains operable during project construction. Comm. Pogatchnik also inquired whether anyone else was interested in the CDBG funds. Mr. Olson reported that, consistent with the Smith Downtown Code Improvement project completed with 2000 CDBG funds, the Ben Franklin project is proposed to be funded up to a maximum of $70,000. The remaining 2002 CDBG funds are anticipated to be approximately $35,000. It was concluded that a project of a similar size as the Smith's and that is proposed for the Enggrens could not be accomplished with the remaining funds. The remaining funds may be reprogrammed for other uses or may be carried over to 2003 and incorporated into another Downtown Code Improvement program. It was noted that many unknown issues and extra project costs often arise when renovating buildings of this age. Mr. Olson reminded the Commissioners that the assistance is capped at $70,000, and the Enggrens, who must match the funds on a 1:1 basis, would be responsible for any additional costs incurred. The CDBG assistance would be provided as a reimbursement after the entire project is complete, thus eliminating the possibility that funds could be expended on a project that owners deem too costly to complete. This is identical to terms of the grant agreement that was approved for the Smith Dental building. a Economic Development Commission Meeting Minutes June 25, 2002 • Motion 02:13 Comm. Pogatchnik/Miller moved to recommend the Ciry Council approve $70,000 in CDBG Downtown Code Improvement program funds to be used to address building code issues as depicted in the design presented for the Enggren's Ben Franklin building. Tushie abstained; motion carried. Mr. Olson indicated that the City Council would consider the recommendation to fund this project once the architect has more detailed drawings and has received bids. It is anticipated that the Council will consider this project at the July 15, 2002 City Council meeting. 4. B.) Work Plan Goal # 3: Encourage investigation of critical business infrastructure: Dakota County Technical College collaboration on Lakeville Technology Center Concept Ms. Flad reported that staff has resumed discussions with Dakota County Technical College regarding potential collaboration on the development of a High Tech presence in Lakeville as requested by the High Tech Subcommittee at their April 03, 2002 High Tech Subcommittee meeting. Discussions had been on hold until the outcome of the ISD 194 referendum was known. • On May 16, 2002, staff met with President Ron Thomas and staff from Dakota County Technical College, representatives from Metropolitan State University, and Gary Amoroso, Julia Espe, and Barb Knudsen of ISD 194. The parties discussed developing a Center that would provide courses in technical trades, college courses for high schoolers, undergraduate and graduate courses, and would also have a component that could serve entrepreneurs, telecommuters and customized training for companies' employees. Additionally, DCTC President Ron Thomas again suggested that DCTC could possibly fund a coordinator position who could focus their energy on developing this partnership and the subsequent project. Dr. Thomas also indicated that he has been cultivating a relationship with Metro State University President Wilson Bradshaw, who is very close to the Chancellor of the university system and who will also serve on the Chancellor's board next year. Ron believes that this project will capture the attention of the Chancellor and the university system because of Mr. Bradshaw's interest and involvement. Ms. Flad shared a draft concept of this project that was developed with input from each of the organizations. Staff also visited the Owatanana Technology Center on June 20, 2002 with Dr. Thomas • and staff in order to evaluate the feasibility of replicating this model. Dr. Thomas is 5 Economic Development Commission Meeting Minutes June 25, 2002 considering visiting a similar facility in Salt Lake City, Utah to evaluate the feasibility of • incorporating that model into the Lakeville project. Staff will be meeting with DCTC, ISD 194 and Metro State University in the near future to determine the next step for the project. 5. Review of proposed Dakota County Tax Increment Financing Policy Mr. Olson reported that Dakota County recently provided the City with a copy of a DRAFT Tax Increment Financing (TIF) Policy dated 5/23/02. The City was previously provided a DRAFT TIF Policy dated 1/23/02. Mr. Olson indicated that the County is attempting to simplify their policy with the most recent DRAFT. The policy is intended to limit and constrain the use of TIF for the types of projects listed below. The current DRAFT policy indicates the following: Dakota County will support housing, redevelopment, and renewal and renovation of TIF districts that increase or have a neutral effect on the number of affordable housing units in the community, clearly demonstrate that they meet the `but tor" test, and meet at least one of the following: 1. Provide affordable housing • 2. Include livable community housing and provide mixed use such as a central city concept 3. Remove blight conditions and contamination 4. Provide a net increase in livable wage jobs The previous DRAFT TIF Policy included a statement that the County would only support Economic Development TIF Districts that provide substantial county-wide economic benefit as determined by the County. This provision is not contained in the latest DRAFT Policy. Economic Development Districts are typically utilized for new manufacturing and warehouse projects that are developed on previously undeveloped sites. The County has previously not supported this type of TIF District. In addition, the current Draft TIF Policy does not address Soil Correction TIF Districts. The other main provision of the DRAFT Policy addresses transportation improvements that may be required as a result of a TIF Project. This current DRAFT Policy indicates the County: shall require the authority (City) to pay all or a portion of the cost of related or required improvements to the county transportation system from increment revenues, if the following conditions occur: 1. The proposed plan would, in the judgement of the county, substantially increase the use of the county transportation system and require construction of road improvements or incur other transportation system casts; and 2. The transportation system improvements are not scheduled for construction within • five years under the county capital improvements plan, and, in the opinion of the county, 6 Economic Development Commission Meeting Minutes June 25, 2002 • would not be expected to be needed within the reasonable foreseeable future were it not for the tax increment district. It should be noted that under Minnesota Statutes, the County is provided the opportunity to comment on proposed new or amended TIF districts, however the County cannot prevent cities from approving new or amended TIF Districts that meet all the requirements of Minnesota Statutes. Staff is in the process of preparing comments to this latest DRAFT TIF Policy. 6. Update On Dakota County Economic Development Partnership Mr. Olson reported that The Dakota County Economic Development Partnership (DCEDP) recently mailed a survey to approximately 100 community leaders in Dakota County including DCEDP members, past members, all cities, county representatives, chambers of commerce, school district superintendents and local newspapers. The response rate of the survey was 40%. The majority of the respondents indicated that DCEDP should continue to operate as a county-wide agency that coordinates and promotes economic development in Dakota County. The greatest strength of the DCEDP is the involvement, support and leadership from both the public and private sectors, and the collaboration and communication that results. According to the survey results, the most important . program areas for the DCEDP to continue focusing on include: • Business retention and development • Workforce development and training • Technology • Marketing Dakota County as a unified entity The DCEDP was also identified as having a number of weaknesses or shortcomings in its mission and operations, including: • The DCEDP's mission being somewhat off target by trying to be all things to all people. • The DCEDP has not effectively communicated its activities. • DCEDP leadership and management have not been as effective as they should be. A Strategic Planning Task Force, with the help of a The Osgood Group, was formed to initiate the survey. The taskforce has been meeting regularly to review the survey results to determine what changes need to be implemented in the organization. Mr. Olson indicated he has been searing on this Task Force as one of two city representatives. The other members of the Task Force represent the County and • private sector members. Economic Development Commission Meeting Minutes June 25, 2002 The Survey results were recently reviewed with Chambers of Commerce in Dakota • County and with Community Development Directors. Based on the discussions of the DCEDP Task Force and meetings with the above organizations that have taken place to date, several areas for improvement of the DCEDP have been identified, including: • Eliminate duplication with other entities • Increase visibility, credibility and leadership • The need for strong Executive Director leadership Additional input from a number of other organizations, including the Dakota County City Managers group, will result in a number of recommended changes to the organizational structure and focus of DCEDP. These recommendations will be considered by the full membership in the next several months. Comm. Pogatchnik indicated that he did not believe Lakeville would be overlooked by businesses looking for a new location if the Ciry was not a member of DCEDP. Mr. Bornhauser indicated that DCEDP needs to be a marketing entity. Chair Vogel suggested that this topic be included when discussions about the 2003 budget take place. • 7. Director's Report. Mr. Olson reported that City staff has recently approved a site plan and concept plan for the renovation of the Old Tom Thumb building located at the corner of CSAH 50 and 175th Street owned by Bob James. Approval of the plan will result in the removal of a free- standing shed behind the building, elimination of a pylon sign base located within an easement and the removal of a trash enclosure located within an easement. This property is located within the Moratorium Area. The plan, with several minor revisions, is permitted as it utilizes the existing building footprint and does not intensify the use so as to require a conditional use permit or variance. Mr. Olson reported that Mr. James was very positive about the outcome of this review process and will be able to pursue other improvements to property once the moratorium is lifted, including a possible drive-thru window, improvements to the outdoor seating area, and improvements to his parking lot design including landscaped medians. The proposed uses that would occupy the remodeled commercial center may include a coffee shop, sandwich shop, and a dry cleaner. SRF Consulting Group continues to meet with property and/or business owners in the Moratorium area. The input gathered will be used by SRF to develop a preliminary design layout, traffic forecast and traffic operations evaluation for the I-35 -CSAH 50 area. • s Economic Development Commission Meeting Minutes June 25, 2002 • Mr. Olson also reported that the Dakota County Board awarded a bid to Valley Paving on June 4, 2002 for the first phase of the CSAH 60 project. The Bid award amount was approximately $2 million below the engineers estimate. The first phase project will include construction of the south ramps, realignment of the frontage road and the upgrading of 185th Street east of I-35. The Project Management Team for the I-35-CSAH 70 Interchange Project has met twice, and their next meeting is scheduled for July 11, 2002. The Team is comprised of representatives of MnDOT, Dakota County, and the City of Lakeville, along with the consulting firms of TKDA and SRF. Mr. Olson reported that the City Council approved the proposed sketch plan for the CrossRoads Development at their June 17, 2002 meeting. This is a mixed-use development proposed at the southeast corner of Dodd Boulevard and Cedar Avenue on approximately 230 acres. OPUS Corporation is the developer of the commercial portion of this project that contains approximately 186,000 square feet of space and will have a Cub Foods store as its anchor tenant. Approval of this sketch plan was contingent upon reaching an agreement with the County on an innovative approach to the upgrade of Dodd Boulevard. The County has authorized the execution of an agreement whereby the City would be authorized to oversee the upgrade of Dodd to a four-lane divided roadway from Cedar to Gerdine Path. The City would also to be the agency to coordinate the installation of traffic signals at Cedar and 179th Street and at Glacier and Dodd Boulevard when traffic warrants are met. All of the required transportation improvements will be funded by OPUS . and by DR Horton, the residential developer of the project. Mr. Olson reported that the next annual meeting of the Fairfield Property Owners Association was held on Tuesday, June 25th at noon at New Morning Windows. Mr. Olson also reported that a meeting of the Airlake Airport Advisory Commission has been scheduled for Thursday, -June 27, 2002 at 4:00 in the Flyteline Services building at the airport. This will be the committee's first meeting in approximately two years. Mr. Olson indicated that Dakota County Capital recently approved a loan in the amount of $50,000 to Tangen Industrial Services located in Airlake Industrial Park. Dakota County Capital LLC is a Gap and Equity Financing fund that is overseen by the Dakota County Economic Development Partnership staff. A number of banks in the County participate in the program. The loan made to Tangen was for machinery and equipment and was processed by Anchor Bank in Lakeville. Mr. Olson reported on the most recent legislative session and provided a Final Legislative Report prepared by Kathy Hahne lobbyist for the Economic Development Association of Minnesota. In terms of economic development programs, the Governor's veto of all funding for State redevelopment programs is significant. In addition, the legislature eliminated funding for the TIF Grant program that was established to assist cities with TIF Districts that have shortfalls caused by property tax reforms. As the report indicates, unless there is a • 9 Economic Development Commission Meeting Minu[es June 25, 2002 • significant improvement in the state economy, there will be dramatic spending cuts or tax increases required during the 2003 Legislative Session. Mr. Olson also reviewed a memo from Fire Chief Danny Barth regarding the sale of fireworks in the City as a result of the recent change in State Statutes. Chief Barth indicated that several licenses to sell fireworks have been issued with some parties withdrawing their applications. 7. Adjourn. Chair Vogel adjourned the meeting at 8:20 p.m. Respectfully submitted by: Attested to: ,~22~1 ~ - _ Ann Flad, Recording Secretary -bob V~ I, Chair io