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I
• CITY OF LAKEVILLE
ECONOMIC DEVELOPMENT COMMISSION
MEETING MINUTES
January 26, 1999
Members Present: Brantly, Detjen, Emond, Erickson, Matasosky, Miller, Pogatchnik, Tushie,
and Vogel.
Staff Present: Robert Erickson, City Administrator; Michael Sobota, Community &
Economic Development Director; and Rita Erpelding, Economic
Development Coordinator.
1. Call to Order. Chair Vogel called the meeting to order at 6:05 p.m. in the Administration
Conference Room at Lakeville City Hall.
2.. Approval of the December 1, 1998 Meeting Minutes.
99.01 MOTION: Comms. Pogatchnik/Miller moved to approve the December 1,
1999 meeting minutes. Motion carried umanimously.
3. Election of Officers.
• Nominations for officers were as follows: Comm. Vogel for Chair, Comm. Matasosky for
Vice-Chair, and Comm. Brantly for Secretary
99.02 MOTION: Comms. Erickson/Pogatchnik moved to cast unanimous ballot for
Comm. Vogel for Chair, Comm. Matasosky for Vice-Chair, and
Comm. Brantly for Secretary. Motion carried unanimously.
4. Update of Strategic Plan and Activities.
Mr. Sobota stated that Rita Erpelding, Economic Development Coordinator, is now
full-time and working on Strategic Plan activities. Mr. Sobota expressed appreciation for
the EDC's patience during the hiring process. Mr. Sobota stated that the Strategic Plan
has been updated and the staff requests discussion on items 1, 4, 5, and 6.
Mr. Sobota began reviewing the status of item 1, the Community Marketing Plan
Implementation. Three of the four videos have been produced and sent out. The majority
of the follow-up calls have been completed. Approximately 75 follow-up calls remain for
the Business Services target. The primary concern for City Staff is the Medical/Health
Services video. Questions have been raised about whether a video is the proper format for
marketing to the medical community. Another concern is whether the EDC has sufficient '
information on the Lakeville market for medical services. Staff recommends inviting
representatives of the medical community to the March EDC meeting. Their participation
would allow the EDC to learn what information the medical community utilizes to
• determine future site locations.
' Lakeville Economic Development Commission January 26,1999
Meeting Minutes Page 2
• Comm. Erickson agreed stating that contact needs to be made with the medical
community. In addition, Comm. Erickson believes there is a greater need than just for
acute care. Other types that will be needed are home care, nursing homes, assisted living,
independent living, etc.
Mr. Sobota agreed stating that the proposed dialogue with the medical providers would
provide the EDC with an understanding of what information is important for the medical
community's decision making process. This information could then be utilized to market
Lakeville to the medical community. Comm. Brantly stated that this was an opportunity
to learn how Lakeville is viewed as a market, which would enable the EDC to go back to
them and provide them with the necessary data to show that Lakeville can support a
medical facility. Mr. Sobota agreed stating that the focus of the discussion would be on
how the medical community looks at Lakeville and what information or characteristics
the decision-makers need to know in order to make an investment in the Lakeville
community.
Comm. Pogatchnik expressed concern that the EDC would just be dealing with the larger
players and not the smaller service providers such as ophthalmologists, etc. Mr. Sobota
responded that the entire medical community was identified as a need for growth in
Lakeville. However, by talking to the larger providers the EDC would learn what kinds of
approaches would be effective.
Chair Vogel suggested that the EDC may want to form a subcommittee to work on this
• issue. Through unanimous consent aMedical/Health Services Subcommittee was formed
with Comms. Emond, Detjen, and Erickson identified as members. The subcommittee
will work on gathering information, meeting with representatives of the medical
community, and identifying approaches that would be successful. The subcommittee will
report back to the EDC in March on their findings.
Mr. Sobota continued the discussion of work activities in the Strategic Plan with item 2,
the Review of the Development Review Process. Mr. Sobota stated that a second
workshop will be held in March, 1999, because of the recent staff additions.
Discussion then turned to item 3, Storm Sewer Issues Related to Airlake Industrial Park.
Mr. Sobota stated that the Mayor has sent a letter to the DNR in response to the
recommendations of the EDC at the December 1 meeting. The DNR has sent the City a
positive response supporting continued work with the City on environmental matters. Mr.
Sobota stated that staff is working on completing the database for Airlake which
inventories the status of the Storm Sewer Area Charge. Staff is also working on
compiling information about what improvements have been or will be constructed using
the Trunk Storm Sewer Area fund dollars. Utilizing the Principles and Alternatives
drafted by the Joint EDC/EAC South Creek Subcommittee, staff is also beginning to draft
a work plan to implement the subcommittee recommendations and researching potential
methods of funding.
•
' Lakeville Economic ?evelopment Commission January 26,1999
Meeting Minutes Page 3
• Mr. Sobota stated that the next step in the process is a meeting in March with Airlake
landowners to bring them up-to-date on the current status and future process for the
study. Comm. Matasosky emphasized that the objective of the study is not to recreate the
current Storm Water Management Plan but to identify possible amendments as necessary.
Mr. Sobota agreed stating that the study may define and recommend best management
practices (BMP's) that should be integrated into the plan.
Comm. Pogatchnik questioned whether the meeting would include only those landowners
adjacent to the stream. Mr. Sobota stated that is would include the entire pazk because all
are impacted. Comm. Emond asked whether the fee was chazged only to those along
South Creek. Mr. Sobota responded that the current Trunk Storm Sewer Area Charge is
paid equally by all development types (i.e. single-family, commercial/industrial) in the
entire city. Comm. Emond then questioned what projects the City had constructed
because it is important to show that the City has done something with it. Mr. Sobota
stated that that is why staff is working on developing a list of what improvements have
been made with fund dollazs. Some examples are the easement purchases in Airlake, the
bridge located by Grist Mill, and the movement of the Lake Mazion outlet. The
information on improvements will be shared with the landowners at the March meeting.
Mr. Matasosky stated that it was important to discuss not only Storm Water, but also the
impact that the trout designation has on watershed properties and possible methods of
mitigation. Mr. Brantly agreed and stated that it is important that there be a good turnout
of landowners. Mr. Matasosky stated that it would be important that the landowners are
• aware of the content of the meeting and how it impacts them. Mr. Sobota asked when the
meeting should be held to have the highest turnout. Mr. Matasosky recommended
morning or noon. Mr. Sobota stated that staff would schedule the meeting in Mazch and
check the date with the subcommittee.
Mr. Sobota stated that item 4, the Landscape Comdor Study, is in progress. There is an
Open House scheduled for the community on January 28, 1999. The Open House
provides an opportunity for the community to learn what the project is and what the
process will be. The next step in the process is the Ideation Workshop. The Ideation
Workshop is the time when themes and ideas for the corridors and gateways will be
discussed. Staff recommends that the Ideation Workshop take the place of the EDC
meeting for February. The EDC agreed that the Ideation Workshop should be February
23, 1999, from 5:00 to 8:00 p.m. at the Water Treatment Facility.
Mr. Sobota asked Ms. Erpelding to review the status of item 5, the Creation of Financial
Incentives Policy. Ms. Erpelding stated that the survey of other communities' financial
incentive policies and tools was complete. Also complete is the review of St. Louis
Park's policy and the review of the 1997 & 1998 legislative impact on Tax Increment
Financing (TIF) policy. The identification of Financial Incentives Subcommittee
members was completed in August of 1998 with four candidates approved at that time.
Ms. Erpelding stated that two of the four have recommitted their interest in the
committee, one has recommended another individual in her company, and one was out-
•
' Lakeville Economic Development Commission January 26,1999
Meeting Minutes Page 4
• of-town. Ms. Erpelding asked the EDC whether additional committee members were
necessary and if so, whom the EDC would recommend.
At this point in the meeting, Mr. Erickson felt the EDC should know that there is
continuing discussion in the Senate about abolishing TIF. Since TIF is one of the primary
tools for economic development, the EDC may want to encourage the City Council to
support the continuation of TIF. Mr. Erickson then reviewed the League of Minnesota
Cities Legislative Position on TIF.
Motion 99.03 Comms. Emond/Brantly moved that the City Council adopt the
League of Minnesota Cities Legislative Position on Tax Increment
Financing. Motion carried unanimously.
Discussion then returned to the composition of the Financial Incentives Policy
Subcommittee. Comm. Matasosky recommended some legal representation to assist the
Subcommittee in determining whether there may be other incentives to legally create. Mr.
Sobota agreed stating that additional resource people need to be identified. One
suggestion would be Mark Ulfers, Dakota County I-IILA, who could explain the County's
policy on TIF. Mr. Erickson stated that the staff would create a list of potential resource
people and would ask the EDC to modify it based on their knowledge of resource people
within their own field.
Comm. Pogatchnik asked whether there are incentives other than financial. Mr. Sobota
• stated that there are others such as customer service and a reduced development review
time. Comm. Tushie agreed adding that the ability of projects which aze permitted uses in
commercial and industrial districts not to have to be reviewed by the Planning
Commission or City Council is definitely an incentive. Comm. Brantly also stated that
aesthetics and quality of life of the community are incentives to companies. Comm.
Pogatchnik stated that it is important that the Subcommittee examine other options
because adjustments are constantly being made to TIF by the legislature.
Mr. Sobota then reviewed item 6, Creation of Evaluation Tools for Development Projects
Requesting Incentives. Mr. Sobota expressed concern that the activity will take many
hours to complete and in essence is part of the implementation of item 5. Mr. Sobota
suggested that the hours identified be moved to item 5 to assist in its completion. EDC
members agreed that the time allotted for item 6 would be re-alloted to item 5.
Mr. Sobota concluded his review with item 7, Year-end Activities. Mr. Sobota stated that
the Job Fair in March of 1998 was successful with 42 business participants and 1,200
attendees. The Career Fair has been organized by the Chamber of Commerce for
February 25, 1999. Mr. Sobota stated that the staff recommends the EDC discuss possible
activities for Minnesota Manufacturers Week in April.
5. Strategic Work Plan Update Process.
Chair Vogel stated that it is time to work on another two-year strategic plan. Chair Vogel
• recommended that outside individuals be invited to present at the March, April, and May
' Lakeville Ecogomic Development Commission January 26,1999
Meeting Minutes Page 5
• EDC meetings in order that new ideas would be brought into the process. Then a
facilitator would be brought into lead the strategic planning process. Comm. Pogatchnik
asked whether there would be a separate work session. Chair Vogel responded that there
would anight/day session after the other presentations.
Comm. Brantly agreed that the outside perspective is important but wondered who could
be brought in. Mr. Sobota stated that at the first Strategic Planning Session, CSM, a
private developer, was brought in to provide the developer point of view of Lakeville.
Comm. Matasosky recommended that a representative from a city such as Eagan or
Burnsville would bring a beneficial perspective. Mr. Erickson recommended Al Madsen,
the City Administrator from Maple Grove. Comm. Tushie agreed that Mr. Madsen could
review and critique progress of the Strategic Plan activities and where we are going. Mr.
Erickson also suggested Chris Enger, City Manager of Eden Prairie. Comm. Matasosky
stated that Mr. Madsen and Mr. Enger would be beneficial because Lakeville is now
becoming a primary market and they would be able to assist in identifying some of the
struggles that Lakeville may anticipate. Comm. Brantly agreed stating the EDC should
ask them what they wish they would have done. Mr. Sobota asked whether the EDC
would prefer them on the same night or at two separate meetings. Comm. Emond stated
that they possibly would play off each other if they were at the same time. Mr. Erickson
recommended that they present separately. Chair Vogel recommended that they be
invited to the May EDC meeting and then the planning session would be in early
September. Chair Vogel then asked whether there were additional resource people needed
such as for the economy or the labor market. When Comm. Brantly suggested that a
• resource person regarding the labor market might be beneficial, Mr. Sobota
recommended Cal Clark from People's Natural Gas. The EDC agreed to pursue outside
resource presentations prior to a Strategic Planning Workshop and requested staff to
follow-up.
6. Project Activities.
Mr. Sobota stated that the EDC discussion about the Comprehensive Guide Plan at the
December 1 EDC meeting has led to some changes. At that meeting the EDC expressed
concern over a lack of affordable housing, especially in proximity to Airlake. Mr. Sobota
noted that the City of Lakeville has an opportunity fora 30 unit housing project near
Airlake. The opportunity is based on a recent action of a neighboring city. The project
would be similar to the Cedar Valley Townhomes with a density of approximately 6 to 7
units per acre. The potential site would be west of the Baptist Church on 210a' Street just
north of County Road 50. The Dakota County I3RA has three weeks to identify a site for
the project. Staff has already contacted the Dakota County I-IRA and recommended this
site. There are 4 large parcels with 15 acres. Although they would not need all of the
parcels, the Dakota County HRA is meeting with all of the landowners in the coming
week. Comm. Erickson asked if there were any alternatives. Mr. Erickson said that there
were no alternatives within the timeline because any other potential site would need a
neighborhood process.
•
` Lakeville Economic Development Commission January 26,1999
Meeting Minutes Page 6
• 99.04 Motion: Comets. Tushie/Detjen moved that the City of Lakeville continue
to work with the Dakota County HRA on a housing project near
Airlake Industrial Park. Motion carried unanimously.
Mr. Sobota stated that City staff is working with the United States Postal Service (USPS)
on the possible construction of a 28,000 square foot operations facility. Mr. Sobota stated
that the USPS wants to separate the trucking and carrier processes from the retail
function. Mr. Sobota stated that City staff saw this as an opportunity for increased service
to Airlake businesses and asked the USPS to do a survey of Airlake businesses needs.
The USPS survey of 66 businesses showed that only 2 wanted window service, while the
majority wanted a drop box and earlier delivery times. Based on this survey, Mr. Sobota
said the City is considering offering the USPS land in exchange for a drop box and
increased service to Airlake. The site identified is located on County Road 50 and is
partly within the shoreland district west of Belzer Chevrolet. The involvement of the City
in this project may also enable a trout demonstration project to take place. Comm. Emond
asked whether there would be a concern about access onto County Road 50. Mr. Sobota
stated that it should not be an issue, because once Dakota County builds the extension of
County Road 50 on 202"d Street from Holyoke to Cedar, the portion of County Road 50
through Airlake would be turned back to the City.
Mr. Erickson stated that this new USPS facility would get the trucks out of downtown
Lakeville and free up parking in downtown that is currently being utilized by the carriers.
In addition, the existence of the facility in Airlake could have additional benefits for
• business development. For example, a bulk mailer may then consider7ocating in Airlake.
Comm. Emond then asked how much of the land is actually buildable. Mr. Sobota stated
that the area next to the channel is unbuildable and would be a good location for ponding
or greenspace. Comm. Brantley asked how many carriers would be at this new facility.
Mr. Sobota stated that there would be between 70 to 80 carriers because both Lakeville
and Farmington carriers would work out of that facility. Comm. Erickson agreed that the
movement of the carrier function out of downtown would definitely be a benefit. Comm.
Matasosky also stated that some companies that have recently moved to Fairfield have
expressed concern about the level of service of the USPS. Mr. Sobota suggested that the
City could also ask for a drop box in Fairfield to serve those businesses. Comm.
Pogatchnik asked how much the City would lose on taxes on that property. Mr. Sobota
stated that it would be about 5 percent of the value. Mr. Sobota added that the trade of the
last Fairfield lot would take the City out of the land development business and could
increase service to Airlake and Fairfield businesses. Comm. Brantly stated that it was a
good trade-off and may stimulate development in Airlake. Comm. Tushie stated that the
existence of the USPS is another part of the infrastructure of the community. Mr. Sobota
also stated that there is a potential increase of 10 to 15 jobs. Mr. Erickson stated that it
may be possible to do a lease back which would recover the land costs.
99.05 Motion. Comets. Matasosky/Miller moved that City staff continue to
pursue a USPS facility. Motion carried unanimously.
•
Lakeville Economic ?evelopment Commission January 26,1999
Meeting Minutes Page 7
• Mr. Sobota stated that Itron is consolidating their facilities and are leaving Lakeville.
Since they are only 2 yeazs into their 10 yeaz agreement they want to sub-lease the
facility. The current space is 38,000 square feet with an option through 2004 that would
allow expansion up to 100,000 square feet.
Mr. Sobota then reviewed the status of the Twin Cities Business Monthly project. Twin
Cities Business Monthly is read by over 38,000 CEOs in the Twin Cities area. The
Lakeville supplement will be a part of the April issue. Currently there are four sponsors
for the project: Airlake Development, Inc., Dakota Electric Association, NSP, and
People's Natural Gas. Twin Cities Business Monthly is now in the process of securing
additional advertising.
Mr. Sobota stated that the City is working on other projects including: a 250,000 square
foot wazehouse for Grist Mill, a 123,000 squaze foot distribution center for Wausau
Supply, and two 10,000 square foot medical office buildings at 185`" Street and County
Road 50.
Mr. Sobota invited EDC members to attend the Dakota Electric Association's Partners in
Progress event on February 4, 1999. Mr. Sobota also announced that the City will be
hosting a program for realtors on residential development in Lakeville. The program will
be on February 23 from 1:30 to 4:30 p.m, at the Water Treatment Facility.
7. Other Business. No additional business..
• 8. Adjourn. The meeting was adjourned at 8:25 p.m.
Respectively submitted by: ATTESTED TO:
Rita Erpeld ng, Recor ' g Secretary Bob Brantly, Secretary
•