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HomeMy WebLinkAbout08-26-97 x r • CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES August 26, 1997 Members Present: Brantly, Detjen, Emond, Erickson (Alternate), Krejci, Matasosky, Miller, Pogatchnik, Tushie and Vogel Staff Present: Robert Erickson, City Administrator; Nicole Bennett, Economic Development Specialist; Lea Guenther, Public Information Coordinator. Also Present: Glen Bolander and Artie Thorson -Grist Mill; Dick Sherman, Nancy Smith, Jody Braun, and Ryan Kraft -Downtown Lakeville Business Association. 1. Call to Order. Chair Vogel called the meeting to order at 6:05 p.m. in the Main Conference Room at Grist Mill, 21340 Hayes Avenue, Lakeville, Minnesota. 2. Approval of the June 24, 1997 Meeting Minutes. 97.14 MOTION: Comms. Tushie/Pogatchnik moved to approve the Tune 24, 1997 meeting minutes as written. Motion carried unanimously. 3. Tour of New Grist Mill Corporate Office Expansion. Mr. Glen Bolander, CEO of Grist Mill, welcomed everyone to the new corporate offices. Ms. Artie Thorson provided EDC Members, City staff and guests a brief tour of the new corporate offices at Grist Mill. The 10,000-square-foot office expansion was recently completed, and provides office space as well as multiple conference rooms and meeting rooms, a lunchroom and an atrium. 4. Presentation by the Downtown Lakeville Business Association on Property Inventory Study and Update on Committee Activities. Chair Vogel stated that members of the Downtown Lakeville Business Association (DLBA) including Dick Sherman, Nancy Smith, Jody Braun and Intern Ryan Kraft are present to provide the EDC with information on DLBA activities including a recently completed downtown building and property inventory. Mr. Dick Sherman, Chair of the DLBA, stated that the presentation would begin with • an update of DLBA committee activities and conclude with information from Ryan Kraft regarding the property inventory study. Ms. Nancy Smith, Secretary of the Economic Development Commission August 26,1997 Meeting Minutes Page 2 • DLBA, provided a brief history of the DLBA and its origins. She noted that the current DLBA is organized into four committees: Organization, Economic Restructuring, Promotion, and Design. Strategy sessions for these committees were conducted in 1996, and in Spring 1997 a grant of $5,000 was secured from the City of Lakeville matched by $5,000 of DLBA funds to pursue planning activities. The funding was used by the DLBA to hire intern Ryan Kraft to conduct a detailed building and property inventory of downtown Lakeville, and to develop additional strategies for keeping the downtown vibrant. Ms. Smith stated that the Organization Committee has several goals including: registering with the Secretary of State as a 501(C)(3) non-profit organization, identifying additional funding options for the DLBA, and establishing a business improvement district (BID) in downtown Lakeville by 1999. Ms. Jody Braun provided an overview of the Economic Restructuring Committee, and noted that committee goals include: establishing a "niche" plan for the downtown that would include additional retail to augment existing service businesses, conducting market surveys of Lakeville consumer needs and using the information provided in the City of Lakeville Residential Surveys, providing a place for youth activities downtown, creating a loan pool with the help of Greg Peterka at Marquette Bank, creating a pedestrian-friendly downtown corridor by lowering the speed limit and coordinating efforts with the design committee for additional identification or directional signage. Mr. Sherman provided a summary of the goals for the Promotion and Design Committees. He stated that the Promotion Committee serves to promote the downtown as the center of historical, social, cultural and economic activity in Lakeville and to develop a unified marketing plan to promote connections between the downtown, "Town Square", the City of Lakeville, the Chamber of Commerce, the Convention and Visitors Bureau, and Airlake Industrial Park. He noted that the Design Committee's goal is to encourage visual and aesthetic improvements such as signage, kiosks, fountains, public restrooms, telephones, benches, etc., in the downtown consistent with the City's Comprehensive Plan, Building Codes, and the Zoning Ordinance. Intern Ryan Kraft stated that he was hired by the DLBA to conduct a building and property inventory of the downtown. He provided a summary of his background and qualifications which include graduating from St. Cloud State University with a B.A, in Local and Urban Affairs and interning with the Rice Lake, Wisconsin, Mainstreet Association. Mr. Kraft noted that the inventory includes information on vacant land and buildings located downtown, lease rates and leasable space available, structural features of the buildings, and information on downtown businesses. He noted that the inventory provides a framework for guiding future development and business uses in the • downtown area. Mr. Kraft stated that a letter was sent to each property owner in the downtown regarding the study, then he followed up with personal and phone interviews to collect the inventory data. He noted that the inventory boundaries Economic Development Commission August 26,1997 Meeting Minutes Page 3 included property along "main street" or Holyoke Avenue in the downtown, property along 202nd Street (C.R. 50) west to Ipava Avenue, and property along 210th Street (C.R. 50) east to Cedar Avenue. He noted that there are 82 acres along 202nd Street that are undeveloped, and this area represents an opportunity to expand the diversity and commercial strength of the downtown. He stated that the ratio of service to retail businesses is another interesting feature of the downtown in that atwo-thirds majority of the businesses are service-oriented. He noted that a balance between service and retail is more effective in attracting consumers to shop and remain in the downtown. Mr. Kraft provided an overview of business improvement districts (BIDS) or special assessment districts that can create an opportunity to obtain funding for physical improvements, special events or other activities within the district. He noted that revenues from a BID can be used to establish continuity among property owners within the district, and can create a strong sense of community focus within the district. He added that revenues may be spent only within the established district boundaries, only commercial property owners are assessed the fee, and BIDS are a very popular tool used by Mainstreet Associations in Wisconsin. He noted that the average assessment in Wisconsin is $2.50 for every $1,000 of assessed property value. At this rate, approximately $40,000 could be collected in assessments if all the property in the downtown Lakeville inventory was included. Comm. Tushie inquired what property along 202nd Street was included in the 82 vacant acres. Mr. Kraft responded that the "Town Square" area encompasses most of the vacant 82 acres along 202nd Street indicated in the study. City Administrator Erickson inquired as to any issues raised by downtown property owners during the study regarding a special assessment district and any indication of their support or participation if a district was established. Mr. Kraft replied that a few owners stated they were not in support of a district. He noted that most owners seemed interested in the idea after he explained the benefits of the district and the revenues it can generate. Mr. Erickson asked if Mr. Kraft felt it would be a challenge to gain the support and participation of property owners regarding the creation of a BID. Mr. Kraft stated that once the district benefits could be explained to property owners and seen over time, it would be feasible to gain their support. Comm. Tushie inquired as to how a BID is established and whether or not a consensus is required. Mr. Kraft responded that the creation of a BID requires several public hearings and approval by a 2/3-majority of affected property owners, and he noted that it is a legally binding assessment once approved. Mr. Sherman stated that without the creation of a BID, the DLBA will be curtailed from continuing to provide membership and funding support for downtown activities as it is difficult to maintain the organization without The formal commitment of property owners. • Mr. Erickson stated that he supports the concept of a BID, and the benefit to individual property owners is clear when one considers that home values have increased since the downtown improvement project was completed. Comm. Economic Development Commission August 26,1997 Meeting Minutes Page 4 • Matasosky stated that he sees the creation of a district as an opportunity for downtown property owners. He noted that if $40,000 can be generated through a special assessment, the money can be used to unify the downtown. Comm. Emond stated that in addition to the beneEts of unifying the downtown, individual improvements could be made to buildings that would result in increased property values. Comm. Matasosky asked what disadvantages could result from the creation of a district. Ms. Braun responded that the primary disadvantages would be paying the fee or assessment as well as any increase in taxes if property values increase. Comm. Erickson noted that a legal assessment of property owners would generate much more revenue than billing the businesses without any binding consequences. Ms. Smith agreed that it was a difficult undertaking to simply convince property owners to provide a few hundred dollars each toward the $5,000 needed to match the grant provided by the City of Lakeville. She noted that the key is to inform the business and property owners that the DLBA is a viable organization, and she asked for the support of the EDC and the City of Lakeville in maintaining ongoing communications regarding DLBA activities and the potential creation of a special assessment district. Comm. Brantly inquired as to a DLBA Marketing Plan or other means of informing the business community regarding its efforts. Ms. Braun responded that the DLBA does not currently have a marketing plan in place. Mr. Erickson stated that if the DLBA has sufficient funds remaining from the City grant and matching funds, it may want to continue its momentum from the inventory project by extending Mr. Kraft's employment and developing a proposal to establish an assessment district. Comm. Emond inquired if the DLBA has researched other potential sources of funding assistance such as state or federal grants for downtown organizations. Mr. Kraft responded that he compiled a list of potential funding sources including government programs, non-profits and foundations; but did not have time to reseazch each program in-depth. He noted that it can take up to 2 years to establish a BID, and it requires a lot of work to inform and mobilize support from affected property owners. Comm. Tushie inquired as to what boundaries would be established for the district and how the district azea would be determined. Ms. Smith responded that the goal was to include commercial areas surrounding the downtown, such as "Town Square" and the two car dealerships located in Airlake Industrial Park, in order to get as many businesses involved as possible. She added that generating broader business community involvement and consensus regarding the creation of a district may occur if a larger number of businesses are included in the process from the start. Chair Vogel noted that business and property owners should be contacted early in the process of developing a proposal to establish a BID. He indicated that it is important to include those initially opposed to the creation of a district in addressing issues and incorporating ideas for how to gain property owners' support for a district. He noted • that it would be helpful for the EDC to know how many property owners support or oppose the creation of a district when the DLBA brings its proposal to the next EDC meeting. Economic Development Commission August 26, 1997 Meeting Minutes Page 5 • 97.15 MOTION: Comms. Tushie/Matasosky moved to recommend that the Downtown Lakeville Business Association (DLBA) bring a proposal to the September 23, 1997, EDC Meeting for additional discussion if the DLBA wishes to pursue the creation of a business improvement district in downtown Lakeville. Motion carried unanimously. The EDC then noted by consensus that it would like to provide one EDC Member and one staff member to serve as liaisons to the DLBA in preparing the proposal. It was the consensus of the EDC that Comms. Miller and Erickson, and Ms. Bennett will assist the DLBA with the development of a proposal. 5. Review of Draft Economic Development Annual Report. Ms. Bennett and Ms. Guenther provided draft copies of the Economic Development Annual Report to the community. EDC Members provided valuable feedback and comments regarding the title and theme for the report as well as input on content issues including: adding a section to highlight future or upcoming projects such as transportation improvements and "Town Square", a bulleted item regarding the City's low tax rating compazed to the rest of the metro area, information on other quality of life indicators such as new pazks and trails in the city, condensing the section devoted to the Strategic Plan, and incorporating a "Team Lakeville" banner within the report. • 97.16 MOTION: Comms. Erickson/Matasosky moved to recommend to staff that full color be used for the cover of the report if possible. Motion carried unanimously. 6. Strategic Plan -Review Project Status Matrix and Progress on Actions 1-1, 1-2 and 3-1. Ms. Bennett stated that after meeting with Chair Vogel, the Strategic Plan Matrix was revised and includes up-to-date information on the status of projects currently underway. She noted that an updated copy of the matrix was provided in the agenda packet, and staff is currently working on several Strategic Plan projects for the September EDC Meeting. Ms. Bennett noted that copies of the revised matrix have been placed in the Strategic Plan binders for each EDC Member, and will be updated on a bi-monthly or quarterly basis as progress is made on specific projects in the Strategic Plan. 7. Project Activities Update. Ms. Bennett provided a brief project activities update. She thanked Ms. Thorson and Mr. Bolander for providing a tour and meeting facilities for the EDC at Grist Mill's new office headquarters. Ms. Bennett noted that other development activity includes an 18,400-square-foot expansion at Applied Power Products, construction of the Lakeville Liquor Store No. 4 located at the northwest corner of C.R. 46 and Kenrick Avenue, a 28,000-squaze-foot expansion at Arden International Kitchens, and the openings of Provincial Bank located at C.R. 50/Iberia Avenue and SuperAmerica located at I-35/C.R. 46. Economic Development Commission August 26,1997 Meeting Minutes Page 6 . Mr. Erickson noted that the City is considering the purchase of 18 acres in the southeast quadrant of I-35 and 185th Street in preparation for the future development of a full interchange with southbound ramps at that location. He stated that two quality townhouse projects are currently under development: the 90-unit Wensmann Homes development located north of City Hall in "Town Square", and a 164-unit townhouse project developed by Town and Country Homes at Jaguar Avenue, west of Hosanna Church. Ms. Bennett noted that a neighborhood meeting was held July 31, 1997, to discuss the I-35/C.R. 50 Traffic Study. Mr. Erickson stated that over 60 property owners were in attendance, including the owner of Fleet Farm. Ms. Bennett stated that representatives from Lakeville are participating in the Burnsville C.R. 42 Study as well. Mr. Erickson noted that residents and property owners who attended the I- 35/C.R. SO neighborhood meeting commended the City of Lakeville for its proactive role in examining the C.R. 50 azea to prevent issues similar to those affecting C.R. 42. The summer 1997 issue of Airlake Park News will be mailed out within the next two weeks, and staff continues to add information to a property database of Airlake Industrial Pazk. Ms. Bennett noted that a copy of the property tax ranking of metro area cities provided by Comm. Tushie was also included in the agenda packet. Ms. Bennett noted that almost all of the businesses affected by the outdoor storage and screening requirements have installed landscaping and fencing in advance of the scheduled deadline, and a summary of the improvements made by these businesses is outlined in a memo from Administrative Assistant John Hennen included in the agenda packet. 8. Other Business. Comm. Tushie inquired as to how the school district's bond rating affects the city's bond rating based on past and future debt. He noted that the current school district referendum proposes that interest payments on the bonds will not begin until 2018, which may have a negative impact on the school district's bond rating. Mr. Erickson responded that the city has received a copy of the school district referendum proposal, and the City Council has requested that Finance Director Dennis Feller and the city's fiscal agent review the proposal. 9. Adjourn. The meeting was adjourned at 8:45 p.m. Respectfully submitted: TEST TO: ico E. Bennett, Recording Secretary an Krejci, Secret • c:\winword\edc\1997mtgs\0826mtg1mn082697.doc