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HomeMy WebLinkAbout03-25-97 ,1 R • CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES March 25, 1997 Members Present: Brantly, Detjen, Emond, Matasosky, Miller, Pogatchnik, and Tushie Members Absent: Krejci and Vogel Also Present: Robert Erickson, City Administrator; Michael Sobota, Director of Community & Economic Development; Nicole Bennett, Economic Development Specialist; Scott Beckman, Director of the Dakota County Economic Development Partnership; and David Piggott, Executive Director of the Metro East Development Partnership. 1. Call to Order. Vice Chair Matasosky called the meeting to order at 6:05 p.m. in the Administration Conference Room at City Hall. 2. Approval of the February 25, 1997 Meeting Minutes. • 97.07 MOTION: Comms. Emond/Detjen moved to approve the February 25, 1997 meeting minutes as written. Motion carried unanimously. 3. Introduction of New EDC Member, Mr. Dick Miller. Vice Chair Matasosky introduced Mr. Dick Miller who was recently appointed as a new member to the EDC. Mr. Sobota noted that Mr. Miller founded Miller-Hartwig Insurance, owns the Miller Building located in downtown Lakeville, and is the Chair of the Downtown Business Association Design Committee. EDC Members greeted Mr. Miller and welcomed him to the comrnission. 4. Review Request for TIF Assistance from Di-Hed Yokes, Inc. (DHY), TIF District No. 17 Financing Plan and Airlake Redevelopment Project No. 1, Modification No. 6. Mr. Sobota stated that the EDC is being asked to review a proposal for the creation of TIF District No. 17 to assist DHY, Inc., to locate its corporate headquarters and hi-tech manufacturing facility in Lakeville. He noted that the plan is fora 15-year renewal and renovation district to allow for the redevelopment of the Fredrickson property and construction of a 50,000 squaze foot facility in the northwest corner of Holyoke Avenue and C.R. 70. Mr. Sobota noted that the owners of DHY, Inc., live in the Lakeville and Apple Valley. azea and would like to move the business from leased space in south Minneapolis to • this site in Lakeville. He added that this project would provide an opportunity to eliminate non-conforming uses currently located at the site, and to create an attractive gateway to Airlake Industrial Park and Downtown Lakeville with this quality building: M1 Economic Development Commission March 25, 1996 Meeting Minutes Page 2 • He noted that trunk water funds would be utilized for the extension of watermain from Highview and C.R. 70 to the west edge of the proposed site and CDBG funds would be used to extend the trunk watermain from McGuire Junior High School to C.R. 70 along Holyoke Avenue. Mr. Sobota stated that staff is recommending approval of TIF District No. 17. Comm. Pogatchnik inquired if sewer and water are currently available to the site including the existing single family houses. Mr. Sobota responded that sewer is available to the site from the east, but no public water is currently available. This project would allow for water to be extended to the site and sewer to be extended to the site west of the DHY project. Comm. Pogatchnik inquired if there are special requirements for extension of the water line under the railroad tracks. Mr. Erickson replied that a permit is required and the city must compensate the railroad for the right to cross the rail line. Comm. Miller asked when the project would begin. Mr. Sobota replied that the public hearing before the City Council is tentatively scheduled for April 7, 1997, and DHY would like to begin grading the site by May 1st. Comm. Tushie asked what the actual amount of increment would be for this project. Mr. Sobota responded that the project would generate a minimum of $44,909 in annual increment on an assessed value of $1.8 million. Comm. Tushie inquired what • the TIF funds would be used for and what the total subsidy would be. Mr. Sobota replied that the TIF funds will be used for acquisition of the 7.6 acre site; no TIF fixnds would be used for grading or utihties. Mr. Erickson noted that the purchase agreement for the property includes removal of buildings and debris by the current owner. Mr. Erickson stated that DHY was looking at another site in Airlake Industrial Park, and the city encouraged consideration of this property due to the opportunity for redevelopment that would visually benefit Airlake and the downtown. Comm. Tushie asked why this project was not being funded using "pay-as-you-go" TIF. Mr. Erickson responded that borrowing internally will provide a benefit to the city's investment portfolio at this time, and will allow DHY to use its private financing for a high quality building and necessary capital equipment. Comm. Tushie inquired as to how many jobs would be created for the $460,000 in assistance being provided. Mr. Sobota replied that DHY would start with approximately 80 jobs immediately and future employment would be anticipated to grow to over 200. Comm. Pogatchnik inquired if the company is seeking SBA financing assistance. Conan. Matasosky replied that they are not seeking SBA loans. Comm. Brantly inquired if TIF District No. 17 would be for a single project or if other areas would benefit as well. Mr. Sobota replied that the district is project specific, but the extension of sewer and water will have additional benefit for adjacent parcels. He • added that the watermain loop will provide a critical infrastructure link in the area. Mr. Erickson noted that the City Council policy is not to use excess increment beyond what is needed to complete a specific project. He noted that existing projects within • Economic Development Commission March 25,1996 Meeting Minutes Page 3 • tax increment districts, including the three expandable buildings in Fairfield Business Campus, plan to build an additional 100, 000 square feet and add 100+ employees with the potential to build 200, D00 square feet and add 200 employees, which will greatly benefit the city and the school district long after the TIF districts expire. Comm. Pogatchnik noted that this project would be a nice fit for the corner of Holyoke and C.R. 70. Comm. Tushie stated that the building would be anice-looking addition to the area. Comm. Miller noted that the project would be good for Airlake and the downtown by improving the appearance of the corner. Comm. Pogatchnik inquired if the project would have access off of C.R. 70. Mr. Sobota replied that access would be off of Holyoke Avenue because 1/4-mile spacing for driveways is required on county roads. Comm. Matasosky noted that truck traffic would be tight, and most of the auto traffic would be generated by employees. 97.08 MOTION: Comets. Emond/Tushie moved to recommend approval of the TIF District No. 17 Financing Plan and Airlake Redevelopment Project No. 1, Modification No. 6 for DHY, Inc. Motion carried unanimously with Comm. Matasosky abstaining. 5. Overview of Regional Economic Development Partnerships: Presentations by Scott Beckman, Director, Dakota County Economic Development Partnership; • and David Piggott, Executive Director, Metro East Development Partnership. Vice Chair Matasosky welcomed Mr. Piggott and Mr. Beckman. Mr. Sobota provided a brief introduction stating that the city is a member of each regional partnership, and staff felt that it would be beneficial for the EDC to have an update on the focus and activities of each organization. He noted that David Piggott is the new Executive Director of Metro East Development Partnership, and has been there approximately one year. Mr. Piggott stated that prior to joining Metro East, he worked for nine years recruiting Minnesota industry across the border into Wisconsin. He noted that his first task at Metro East was to review and revise the organizational structure. He stated that the results of the organizational restructuring were three-fold. First, Metro East eliminated multiple program areas and returned to its real estate focus. Second, Metro East strengthened its banking focus and referrals to the partnerships member-banks. Third, Metro East will continue to provide demographic profiles and market research for clients and its members. Mr. Piggott noted that Metro East is working to eliminate duplication with other organizations. He added that they are accomplishing this by implementing joint agreements with agencies such as the St. Paul Chamber of Commerce and Capitol City Partnership, and by working cooperatively with groups such as the Dakota County Economic Development Partnership. . Mr. Beckman provided an overview of the Dakota County Economic Development Partnership (DCEDP). He stated that the DCEDP's focus is on retaining and creating business whereas the focus of Metro East is on business attraction and location. Mr. ~ Economic Development Commission March 25,1996 Meeting Minutes Page 4 • Beckman noted that the DCEDP is comprised of 45 members including Dakota County, the Dakota County H1tA, the Workforce Council, 11 cities, two technical colleges, and private sector members. He stated that the strategic focus of the Dakota County Partnership can be summarized into 4 points of economic vitality: a vision for the future, critical long-term workforce development, adequate access to capital and entrepreneurial spirit, and technology and infrastructure. He cited several projects in these areas that the Dakota County Partnership is working on including the "County of the Future" executive conference, acounty-wide zoning map and GIS system, and the creation of an economic development website. Comm. Brantly asked if there are ways that the cities can more effectively work together to enhance economic development. Mr. Beckman replied that the cities can assume specialized roles when cooperating together to target a specific industry such as hi-tech firms. Mr. Sobota noted that on projects such as the county-wide GIS or website, the cities realize significant cost savings when working cooperatively. Comm. Brantly inquired if the Dakota County Partnership has a marketing plan. Mr. Sobota responded that Metro. East acts primarily as a mazketing agent in that they provide business leads and marketing through existing business networks. Mr. Beckman noted that the Dakota County Partnership website will be usefial as a marketing tool and will provide access to a database of industriaVcommercial properties. Mr. Piggott noted that Metro East has a website in place, and will soon be . able to conduct economic impact analysis of projects for its members through a specialized computer program. This program is available to city staff because of Lakeville's membership with Metro East. Comm. Matasosky inquired how well the City of Lakeville is doing in responding to Metro East inquiries and }3FP's. Mr. Piggott replied that Lakeville is one of the top communities based on its complete and timely response to Metro East requests for information. He added that Metro East has not had staff time and resources in the past to monitor projects on an ongoing basis and to provide feedback to its members, but he indicated that they will soon be adding a new staff person solely for that purpose. Mr. Erickson noted that the member-cities are enthusiastic about the organizational restructuring and revitalization of Metro East. EDC Members and staff thanked Mr. Piggott and Mr. Beckman for attending the meeting. 6. Review Workplan Projects for Action 2-1 ("Town Square") Generated at the February 25th Meeting. Ms. Bennett stated that the packets included a strategy worksheet with all of the "Town Square" items discussed at the February 25th meeting. She noted that staff is looking for feedback from the EDC regazding how well the worksheet format and process worked prior to proceeding with strategy worksheets for the other workplan items. EDC Members commented that the process was time-consuming, but that the time factor may have been a product of the topic rather than the process itself. EDC Members indicated that the strategy worksheet • format and process seemed to work welt. r ~ t Economic Development Commission March 25,1996 Meeting Minutes Page 5 • Comm. Pogatchnik asked if staff could provide a brief update of the "Town Square" project. Mr. Erickson stated that a meeting between the city, Enggren's and Supervalu representatives has been scheduled for the week of April 7th. He noted that Wensmann Homes is ready to move ahead with a 90-unit townhouse development this year. Mr. Erickson stated that the Town Square Wetland Replacement and Stormwater Management Plan has been completed through a joint effort with Westwood Engineering. Comm. Tushie inquired about the design of the waterfall and the ponding areas on the plans. He noted that the design should reflect a more natural appearance rather than linear ponding with an urban design. Mr. Erickson noted that there are multiple agencies with regulatory jurisdiction over the wetlands area that influence the design, and it maybe helpful for city engineering staff to provide the EDC with an overview of these various agencies and regulations at the next meeting. The EDC requested that this item be put on the April 22nd agenda with engineering staff and consultants present for the discussion. The next regular meeting was scheduled for Tuesday, April 22, 1997, at 5:00 n-m. 7. Schedule Meeting Times to Develop the Strategy Worksheets for Immediate Actions 1-1 to 3-2. EDC Members agreed to schedule a special meeting to complete the strategic workplan on Thursday, May 1, 1997, at 7:00 a. m. in lieu of the regular May meeting. • 8. Project Activities Update. Mr. Sobota stated that staff recently met with Strout Plastics regarding options for rebuilding in Airlake Industrial Park. He noted that Itron and developer United Properties were recently nominated for the prestigious Award of Excellence by the National Association of Industrial and Office Properties (NAIOP). Ms. Bennett stated that the Airlake Business Listing was recently updated and employment has grown from 3,500 in 1996 to 3,929 in Mazch 1997. She noted that this year mazks the 30th Anniversary of Airlake Industrial Park and staff is planning a special event in honor of Airlake businesses to be held on Apri124, 1997. 9. Other Business. Mr. Erickson provided the EDC Members with information on the upcoming State of the City Address to the Lakeville Area Chamber of Commerce scheduled for Thursday, May 8, 1997. 10. Adjournment. The meeting was adjourned at 8:30 p.m. Respectfully submitted: ATTEST TO: ? Nic a .Bennett, Recording Secretary ~an Krejci, Secret • c:\winword\edc\1997mtgsW422mtg~nn032597.dac