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HomeMy WebLinkAbout05-19-98 • v CITY OF LAKEVILLE • ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES May 19, 1998 Members Present: Brandy, Detjen, Emond, Krejci, Matasosky, Miller, Pogatchnik, and Vogel. Members Absent: Tushie Staff Present: Robert Erickson, City Administrator, Michael Sobota, Community & Economic Development Director; and Nicole Bennett, Economic Development Coordinator. Also Present: Terry North, Owner of Alcorn Beverage. 1. Call to Order. Chair Vogel called the meeting to order at 7:35 a.m. in the Administration Conference Room at Lakeville City Hall. 2. Approval of the April 28, 1998, Meeting Minutes. • 98.16 MOTION: Comms. Emond/Matasosky moved to approve the April 28, 1998 meeting minutes as amended to include Comm. Miller as a member of the Landscape Corridor Study Subcommittee. Motion carried unanimously. 3. Review TIF District No. 16 Plan which provides assistance to Alcorn Beverage to construct a 69,000-square-foot headquarters/distribution center located west of Highview Avenue and south of County Road 70 in Airlake Industrial Park. Mr. Sobota introduced Mr. Terry North, owner of Alcorn Beverage. Mr. North stated that his father moved the business to Airlake Industrial Park in 1971, and the business has expanded four times at its current location on Hanover Avenue and 218th Street. He noted that Alcorn has outgrown its current 3-acre site, and is planning to construct a new 69,000-square-foot office headquarters/distribution facility on a site currently owned by Progressive Rail located at County Road 70 and Highview Avenue. Mr. North noted that the new facility will allow the business to add a minimum of 6 employees and retain the current staff of more than 40 employees. He stated that the new facility will provide offices on the north side facing County Road 70 with a quality exterior look, the warehouse will provide truck access and circulation from west to east, and dock doors will be provided on the south side of the building to screen them from C.R. 70 and Highview Avenue. The site is large enough to accommodate additional expansions in the future. Comm. Miller inquired when construction of the new facility would begin. Mr. North responded that they have sold their existing 45,000-square-foot facility to Ryt-Way Industries, and they plan to begin construction on the new facility this summer. Lakeville Economic Development Commission May 19,1998 Meeting Minutes Pagc 2 • Comm. Matasosky provided an overview of the building layout and displayed floor plans for the proposed facility. He noted that a quality pre-cast finish will be used on the front of the building to provide Alcorn with a quality look facing C.R. 70. Mr. Sobota stated that staff is proposing "pay-as-you-go" TIF assistance to finance land write-down, and public improvements including upgrading Highview Avenue to a 9-ton road, providing turning lanes on C.R. 70 and Highview Avenue, and covering the lateral assessment for the existing trunk watermain constructed in 1997 along C.R. 70 adjacent to the site. He noted that the proposed TIF District No. 16 includes two parcels, the Alcorn Beverage site and the MAC-owned property located southwest of the Alcorn site. The MAC-owned property is being included in the district to allow for the construction of a storm water pond on the MAC site. Comm. Pogatchnik inquired if the TIF project for Alcorn Beverage previously recommended for approval by the EDC is null and void at this time. Mr. Sobota responded that the previous plans for Alcorn's expansion did not move forward in 1996, but the new project is anticipated to move ahead. Purchase agreements between Progressive Rail and Alcorn Beverage have been signed. Comm. Pogatchnik inquired if the county and the school district have provided • comments on the proposed project. Mr. Sobota noted that there is a 30-day comment period for the county and school district prior to consideration of the TIF project by the City Council. He noted that the county typically only supports the use of TIF for housing projects. Mr. Erickson noted that the county is primarily concerned with the impact of development projects on county roads. He noted that transportation improvements on C.R. 70 are incorporated into the project to address this issue. He stated that the city has also taken proactive measures to incorporate turning lanes on County Road 70 and Highview Avenue as part of this project. Comm. Emond inquired if the TIF district includes any land east of Highview Avenue. Mr. Sobota responded that the original plan in October 1996 did include the 68-acre site east of Highview, but the current plan includes only the Alcorn site and the MAC- owned property west of the railroad tracks. He stated that some of the improvements originally budgeted in the previous TIF District No. 16 Plan have been provided by private development such as Menasha Corporation granting an easement for a storm sewer outlet along its western property line, and Progressive Rail constructing a storm water pond. Thus, the TIF district has been scaled back from the original plan. Comm. Emond inquired how large the Alcorn site will be. Mr. North responded that the site includes approximately 8 acres. Comm. Emond inquired if Progressive Rail will be locating a facility on the lot south of Alcorn's proposed site. Comm. Matasosky stated that American Ductile Iron Pipe Company will be locating a new • facility on the parcel south of Alcorn Beverage. Comm. Emond inquired as to the duration of the proposed TIF district. Mr. Sobota responded that 9 years of "pay-as-you-go" TIF assistance will be provided under the Lakeville Economic Development Commission May 19, 1998 Meeting Minutes Page 3 • rules for an Economic Development District. He stated that the City will pay for the storm water pond outlet to be constructed on the MAC-property with funds from the storm water trunk fund to satisfy the local government contribution. Thus, the city will not incur any LGA/HACA penalties. Comm. Pogatchnik inquired whether the developer or the city pays the up-front costs for the project improvements under "pay-as-you-go" TIF. Mr. Sobota replied that the developer pays for the identified improvements and the tax increment is used to repay the developer incrementally during the life of the district. Comm. Emond inquired how much TIF assistance would be generated from the district. Mr. Sobota replied that the district would generate approximately $60,000 per year for a total of approximately $540,000 over 9 years. Comm. Pogatchnik noted that it is important to promote "pay-as-you-go" TIF assistance to the business community as a conservative financial tool that limits the city's exposure and does not represent a "hand out" to businesses. Comm. Detjen added that it maybe helpful for staffto explain the structure of this type of project up front in public hearings and presentations to the City Council to provide the business community with insight regarding "pay-as-you-go" TIF. Chair Vogel noted that it may be helpful to forward these suggestions to the financial incentives subcommittee as they discuss these issues beginning in June. Comm. Matasosky stated that he would • abstain from the vote due to a financial interest in the project. 98.17 MOTION: Comms. Emond/Pogatchnik moved to recommend to the City Council approval of the Proposed Modification No. S to Airlake Redevelopment Project No. 1 and establishment of TIF District No. 16 within the redevelopment project to provide "pay-as-you- go" TIF assistance to Alcorn Beverage to construct a new office headquarters/distribution facility. Motion carried unanimously with Comm. Matasosky abstaining. 4. Review proposed amendment to the Sign Ordinance. Mr. Sobota stated that the Planning Commission recently reviewed a proposed amendment to the sign ordinance regarding reader boards and electronic message boards. He noted that the Planning Commission, including new member Karl Drotning who is a local business owner, recommended that the EDC review the proposed sign ordinance amendment prior to forwarding it to the City Council to provide additional business perspective regarding the proposed changes. Mr. Sobota noted that the proposed amendment includes standards for electronic reader boards such as time and temperature signs often displayed by banks. He stated that the proposed amendment also includes the deletion of a section pertaining to large signs permitted in the freeway corridor district under Section 4, Item G. He noted that • signs in the freeway corridor district are covered in another section of the sign ordinance, and special circumstances are taken into consideration by staff on acase- by-case basis to allow certain size or height variances. He noted several examples including Cracker Barrel and Super 8 receiving variances for sign height due to the Lakeville Economic Development Commission May 19, 1998 Meeting Minutes Page 4 . elevations of their sites in relation to the freeway overpass bridges, and the Lakeville Theatre receiving approval of a single large wall sign equal in size to the combined area of afree-standing sign and two wall signs permitted under the sign ordinance due to visibility constraints. Comm. Matasosky inquired what the intent of the proposed amendment is. Mr. Sobota responded that the intent is to allow electronic reader boards under certain conditions limiting animation and flashing signs, and including a maintenance provision that requires non-functioning signs to be turned off. Comm. Emond inquired if businesses affected by the ordinance are aware of the proposed amendment. Mr. Sobota noted that the proposed amendment was generated as staff s response to businesses such as Provincial Bank and TCF Bank who wish to put up electronic reader boards. Comm. Brantly inquired what the concern is with flashing or scrolling signs. Mr. Sobota noted that if every business were to put up these signs with flashing messages and animation, then the signs would distract from the city's natural amenities and quality appearance. Mr. Erickson noted that the City of Woodbury initially allowed reader boards with flashing messages and animation. The signs resulted in a somewhat diminished look to their quality commercial centers due to flashing characters and animation being put on the electronic boards. 98.18 MOTION: Comms. Pogatchnik/Miller moved to recommend to the City Council approval of the proposed amendment to the Sign Ordinance. Motion carried unanimously. 5. Other Business. Mr. Erickson stated that staff met late yesterday regarding the South Creek Joint EDC/EAC Subcommittee. He noted that the subcommittee is proposed to be facilitated by Joel Jamnik, a new staff member with the City Attorney's office who has ] 1 years of experience following the Eagle Creek trout stream court decision while working for the League of Minnesota Cities. The first South Creek Subcommittee meeting has tentatively been scheduled for Tuesday, June 23, 1998. 6. Adjourn. The meeting was adjourned at 8:30 a.m. Respectfully submitted: ATTEST TO: ~Z/ is a E. Bennett, Recording Secretary n Krejci, Secre ary c:\winwordledc11998mtgs\0519mtg\mn051998. doc •