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HomeMy WebLinkAbout06-25-96 • City of Lakeville Economic Development Commission Meeting Minutes June 25, 1996 Members Present: Brandy, Emond, Erickson, Matasosky, Pogatchnik, Tushie, Vogel. Members Absent: Detjen, Krecji. Also Present: Robert Erickson, City Administrator; Michael Sobota, Community & Economic Development Director; Nicole Bennett, Economic Development Specialist; Ed Dahlby, CP Rail System; Dave Fellon and Tim Wiens, Progressive Rail. 1. Call to Order. Chair Brandy called the meeting to order at 6:10 p.m. in the Administration Conference Room at City Hall. 2. Approval of the April 30, 1996 Meeting Minutes. 96.08 MOTION: Comms. PogatchnikBrantly moved to approve the Apri130, 1996 meeting minutes as written. Motion carried unanimously. 3. Project Activities Update. Mr. Sobota provided an update on projects including the groundbreaking for Itron at the Fairfield Business Campus, completion of the business survey with findings to be presented at the July 23rd EDC meeting, possible expansion • plans for Alcorn Beverage, and roadway construction improvements including the completion of the Highway 50-210th street intersection for Pan-O-Prog. City Administrator Erickson noted that the installation of the new downtown light fixtures will also be complete and the Pan-O-Prog banners will soon be up. He added that the final lift of asphalt will be down for cruise night and the parade, but no horse units will be allowed in the parade due to the new asphalt. Mr. Sobota stated that staff will be meeting with Verified Credentials, Inc., on Wednesday, June 26th to finalize plans for Verified as the third tenant at the Fairfield Business Campus. Verified has proposed a 20,000 square foot corporate headquarters building on the site east of Kensington Blvd. next to the pond. He also noted that the marketing videos are nearing completion. Mr. Sobota stated that the school district and Lifetime Fitness are discussing a possible future health club in the town square area, and a major customer of Imperial Plastics is considering a new facility in Lakeville thanks to John Gamble of Imperial. He noted that Custom Color Printing has referred one of its major customers to the city to consider Fairfield Business Campus, and a Fortune 500 company is considering Airlake as one of 5 top sites for a 700,000 square foot distribution center. Chair Brandy inquired as to the level of feedback received on the Minnesota Real Estate Journal ads. Mr. Sobota responded that the ads are creating a positive image • for the city, increasing broker contacts, and increasing the number of location inquiries. Economic Development Commission June 25,1996 Meeting Minutes Page 2 • 4. Introduction of Nicole Bennett, New Economic Development Specialist, City of Lakeville. Mr. Sobota introduced Nicole Bennett as the new Economic Development Specialist for the City of Lakeville. Each of the commissioners introduced themselves and welcomed Ms. Bennett to Lakeville. 5. ISD 194 Secondary Task Force Report. City Administrator Erickson reviewed the findings and recommendations of the Task Force on Secondary School Facilities. He stated that he appreciated all of the time contributed by the Chamber governmental affairs committee and the EDC members in providing direction and focus. He noted that adding the business perspective regarding property tax issues and impacts on business attraction, retention and expansion was a key component to task force discussion. He summarized the findings as follows: enrollment projection research revealed that the household demographics of the most recent homes purchased include primarily first-time home buyers that are working professionals age 36 to 42 with preschool and early elementary school children, not secondary school kids; residents were opposed to moving sixth graders to middle school, but okay with moving ninth graders to high school; and task force members were not willing to support a third junior high school, but they were supportive of an addition to Kenwood Trail. • Mr. Erickson stated that the Task Force recommendation to add on to Kenwood Trail was an option which requires less staffing and lower operating costs than a new junior high school. He briefly reviewed the task force findings regarding another secondary school campus, and stated that the task force did not want to divide the community by choosing a second location for a new high school. He noted that money is being set aside to possibly purchase land adjacent to the senior high. Mr. Erickson stated that the task force discussed a second sheet of ice and an additional gym for the high school, with the recommendation being to upgrade the seating and parking at Ames Arena, and to provide a field house in lieu of an additional gym at the high school. Comm. Tushie inquired as to what activities the field house would be used for. Mr. Erickson replied that the field house would support spring sports as well as space for possible trade shows and other uses. Comm. Tushie inquired if the roof component could be an inflatable structure. Mr. Erickson responded that an inflatable roof is a possibility and the issue is still under discussion. The proposed field house could serve a broad base with adult access on evenings and weekends. He noted that the Task Force recommendation pared down the original cost estimates for renovating the Kenwood Trail by 55%, and cut the amount of the proposed bond referendum by $13 million from $40 million to $27 million. Mr. Sobota added that another meeting is scheduled with Lifetime Fitness in October at which time they will submit apre-feasibility analysis of working costs. Comm. • Tushie stated that the addition of a senior center with a meal program should be considered as an addition to the concept due to the condition of the old senior center. Economic Development Commission June 25,1996 Meeting Minutes Page 3 • Chair Brantly inquired as to the effects on the district's bond rating. Mr. Erickson responded that any school district that sells bonds and depends on the State of Minnesota for repayment must sell 25 year bonds, but this would not affect the city's rating because it is separate from city financing. Comm. Matasosky noted that it might be helpful to have the Finance Director evaluate the commercial/industrial impacts before the referendum. Mr. Erickson noted that the bond referendum is in Sept. and is moving quickly, so staff will have numbers to the EDC by the July meeting. Comm. Erickson inquired as to how many educators were on the task force. Mr. Erickson replied that roughly one-fourth of the task force members were educators. Comm. Pogatchnik asked who could endorse the task force recommendations to assist in the approval process. Mr. Erickson responded that endorsements from the Chamber of Commerce and EDC would be helpful, and the school board would need to endorse the task force recommendations. Mr. Sobota suggested that maybe a letter from Mr. Brantly as the EDC Chair expressing support for the strategic planning process with comments on the unique secondary campus concept would be helpful. • 96.09 MOTION: Comms. Emond/Tushie made a motion to recommend to the City Council that a letter of support be sent to the school board from Chair Brantly and the EDC. Motion carried unanimously. 6. Presentation by Ed Dahlby, Manager of Industrial Development, CP Rail System regarding future rail service to Airlake Industrial Park. Mr. Sobota introduced Ed Dahlby of CP Rai], who has been a resident of Lakeville since 1975, and Airlake business representatives Dave Fellon and Tim Wiens of Progressive Rail. A video entitled "CP Rail System: A Company of Professionals" was viewed. Mr. Dahlby gave a brief presentation summarizing the operations of CP Rail. He noted that CP Rail Systems has 18,000 miles of track, is the fifth largest network in North America, employs 23,000 people, and has an average haul of 650 miles with long distances as the company's area of efficiency. He stated that CP Rail has teamed with Progressive Rail to address local hauls through "mini-terminals", and if the plan is successfial in Lakeville then they will set up several more. He added that by partnering with Progressive Rail, quick and efficient local service and long distance service can be provided. Mr. Dahlby stated that the service route for CP Rail to Lakeville would connect from St. Pau( to the Northfield yard to Airlake, and the 800 carloads that currently go into Airlake each year could easily double. • Economic Development Commission June 25, 1996 Meeting Minutes Page 4 • Mr. Sobota noted that the strategic planning process of the EDC included a transportation component, and a workplan item was to keep track of rail service to Airlake. Comm. Tushie noted that businesses such as Grist Mill are looking for rail connections to staging areas in the park because they cannot get rail access to their actual sites. Mr. Dahlby responded that these are referred to as "trans-load facilities", and CP Rail would work with Progressive Rail who has proposed to provide such facilities. Comm. Matasosky inquired as to existing facilities of this kind located in St. Paul. Mr. Dahlby replied that there are no trans-load facilities in St. Paul, but there are "piggyback terminals" located at Como Ave and Snelling Ave and operated by Burlington Northern. He stated that growth in intermodal activity is flat right now, but that it is expected to increase in time. Comm. Matasosky commented that with the transition to CP Rail, tenants in Airlake feel that service has improved. Mr. Sobota inquired if the CP line in Lakeville is a part of the main system. Mr. Dahlby replied that it has become more vital and as the need for short lines has increased, other connections will be implemented. • Mr. Sobota requested that Mr. Fellon provide information regarding the short line operation from a service perspective. Mr. Fellon stated that extending service beyond 12 hour shifts to do switching within the park, the flexibility offered to businesses, and the accessibility and short response time are benefits of a small local provider. He noted that Progressive Rail has purchased two 5W1500 locomotives with an end-cab design which should be service ready in 3-4 weeks. He added that Progressive Rail is working to qualify and certify all of their employees. Comm. Matasosky commented that the quality of industrial development leads has increased due to Airlake's proximity to road and rail access. Comm. Emond noted that the support and interest of existing businesses also represents a lot of potential for the service. Mr. Fellon stated that they would like to attend another EDC meeting and provide an update on the full project once the start-up is complete. Chair Brantly thanked Mr. Dahlby, Mr. Fellon and Mr. Wiens for coming and providing the EDC with information on the rail project. 7. Other Business. Chair Brantly passed around a draft memo addressed to the Mayor and City Council regarding a specific name for the Town Square project. The EDC members concurred that a unique name is needed, and that the process of selecting the name is important as well. The EDC members agreed that the letter should be sent on • their behalf. . • Economic Development Commission June 25,1996 Meeting Minutes Page 5 Mr. Sobota gave a brief update on the Town Square project regarding potential tenants and the revised concept plan from the developer's architect. He noted that there is a parking issue yet to be resolved with a large parking area proposed without landscape islands and green space sepazations. Comm. Erickson inquired about the plans for Dodd Blvd. Mc Sobota responded that it is not in the county's 5-yeaz CIP, but that anorth-south connection is needed either at Dodd or Ipava. Comm. Tushie commented that a grocery adjacent to the liquor store is an incompatible arrangement due to the liquor store being a convenience use needing quick in and out access. He stated that it was his opinion that the traffic generated by the two uses would interfere with one another, and the most effective use adjacent to a liquor store is a video store with those uses at the end of a strip development. Mr. Sobota thanked Comm. Tushie for his comments and stated that these are important issues for consideration as the site plans are being revised and solidified. Comm. Tushie stated that he spoke with a client last week and he wanted to pass along his positive comments regarding working with the city. The client commented that Lakeville was the only city out of several contacted that responded quickly with both a letter and a phone call, and the client was frustrated that he had to call the other cities back. • 8. Adjournment. The meeting was adjourned at 8:30 p.m. Respe tfully submitted: ATTEST T0: i ole E. Bennett, Recording Secretary Jan Krejci, S ary c:lwinword\edc1mn062596.doc •