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HomeMy WebLinkAbout10-29-96 CITY OF LAI{EVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES October 29, 1996 Members Present: Brandy, Emond, Krejci, Pogatchnik, Tushie and Vogel Members Absent: Detjen, Erickson, and Matasosky Also Present: Robert Erickson, City Administrator, Michael Sobota, Director of Community & Economic Development; Nicole Bennett, Economic Development Specialist. 1. Call to Order. Chair Brandy called the meeting to order at 6:10 p.m. in the Administration Conference Room at City Hall. Item 4 was moved after Items 5 on the • agenda to allow for a quorum in voting on that item prior to members needing to depart for other meetings. 2. Approval of the September 24, 1946 Meeting Minutes. 96.14 MOTION: Comms. Emond/Pogatchnik moved to approve the September 24, 1996 meeting minutes as written. Motion carried unanimously. 3. Discussion of October 10-11 Strategic Planning Session and Draft Strategic Plan for 1997-1998. EDC Members noted that the October 10-11 Strategic Planning Session was productive and enjoyable. Members stated that staff had done a nice job organizing the session, and Barbara Lukermann had done an excellent job as facilitator. Chair Brandy inquired if there were any comments, suggestions or changes to the Highlights of the Strategic Planning Session document or the Strategic Plan for Economic Development 1997-1998 document. Comm. Tushie inquired if the three new strategic issue areas would replace the original six strategic headings. Staff responded that the former six headings were reduced to the three new strategic issue areas to guide the new plan and focus on related work • elements. Economic Development Commission October 29, 1996 Meeting Minutes Page 2 • Mr. Erickson stated that the EDC Members did an excellent job setting priorities in the session and that the result was a new plan with even more innovative ideas and approaches to economic development. He noted that an "annual report" mailer to all residents may be helpful to "get the word out" regarding the successes of the EDC and the Strategic Planning process. Chair Brantly stated that a mailer would be an excellent way to identify with residents and share information on economic development programs, and it should give residents ownership of these successes rather than present them as "what the City has done for you." Mr. Erickson noted that by making residents aware of economic development efforts, they are able to act as ambassadors for the City of Lakeville. Comm. Tushie commented that the City of Eden Prairie circulated a similaz flyer to residents to make them aware of in-town businesses. Mr. Sobota noted that the format of the Lakeville mailer could include sections highlighting each commercial and industrial area of the city. Chair Brantly noted that the mailer would be acost-effective project as part of the strategic planning process. He added that the Messages page could provide an announcement of the mailing prior to its release. Comm. Emond inquired who the mailer would be sent to. Staff responded that it would go to all residents of the city as • a bulk mailing and could be included with regular newsletters that are sent out as well. 96.15 MOTION: Comms. TushieBmond moved to recommend to the City Council that funds be allocated in the 1997 Budget for an economic development mailing to all residents. Motion tamed unanimously. Comm. Tushie stated that "to identify and provide affordable housing options" was discussed at the Strategic Planning Session and should be added to the report under the Action Agenda section Comm. Vogel noted that having other city staff participate in the session was very valuable and perhaps it would be helpful to have staff representation on the three strategic planning teams to be created. Mr. Erickson stated that staff who attended the session commented on what a useful process it was. He also noted that funds have been budgeted for achy-wide customer service workshop for all city staff to be held in January 1997. He stated that the workshop will include Bruce Christopher as a leading motivational speaker, skits on customer service performed by staff, a panel discussion with business people, and group training on customer service. This activity would assist in promoting goals of the Strategic Plan for improving customer service from city departments. 96.16 MOTION: Comms. Tushie/Krejci moved to proudly submit the EDC Strategic Plan for Economic Development 1997-1998 to the City • Council and to schedule a group presentation by EDC Members to present the plan to the Council. Motion carried unanimously. Economic Development Commission October 29,1996 Meeting Minutes Page 3 • 4. Alcorn Beverage Company/Progressive Rail Requests for TIF Assistance. Mr. Sobota stated that Alcorn Beverage Company has submitted an application for TIF assistance for the proposed relocation and expansion of its distribution center. He noted that Alcorn currently owns a 42,000 square foot building on 218th Street, and they are proposing to construct anew 62,000 square foot headquarters and distribution center with an expected value of $2 million on the corner of Highview Avenue and C.R. 70. He stated that the proposal would include "pay-as-you-go" TIF assistance in the amount of $392,664 as summarized in the staff memo. Alcorn has an agreement in principle with Photran Corp. for their existing building as Photran needs the additional space for expansion of their business. Mr. Sobota stated that Progressive Rail has also submitted a request for TIF to construct a raiUtransload facility and engine house with 528 square feet of office space and approximately 5,000 square feet of shop/maintenance area. Mr. Sobota also reviewed creation of the proposed TIF District No. 16 to address a number of major impediments to development in Airlake Pazk, including: the construction of a storm water pond on MAC property for the Alcorn/Progressive Rail site and future sites; a storm water outlet for the 68-acre vacant pazcel; and relocation • of a rail spur to facilitate an expansion of Rosemount Office Systems. He stated that staff is recommending that the EDC recommend approval of the Alcorn Beverage TIF request and the TIF District No. 16 Plan, but that the request from Progressive Rail is not being recommended for approval by staff. Comm. Emond inquired if there would be any actual land acquisition by the city. Mr. Sobota replied that the "land acquisition" costs reflected in the staff memo reflect the write-down of the land costs and not a direct purchase of any property by the city. Chair Brantly inquired how the Progressive Rail project would be affected, if TIF assistance is not granted. Mr. Sobota stated that tax increment generated from the engine house would be used for improvements such as the storm water pond within the TLF district, but Progressive Rail would not be provided with direct financial assistance. Comm. Tushie inquired as to how many jobs would be created by Alcorn Beverage Company. Mr. Sobota stated that an increase in employment is anticipated as the building is increasing from 42,000 to 62,000 square feet. Comm. Pogatchnik inquired as to when Alcorn would receive the $392,000. Mr. Sobota responded that if the project is built in 1997 with the first year of tax valuation in 1998, then they would begin receiving "pay-as-you-go" TIF dollazs in 1999. Comm. Pogatchnik inquired as to why Alcorn should be considered for TIF assistance. Comm. Krejci stated that assistance should be given to businesses when major infrastructure costs are involved. • Comm. Brantly noted that the EDC needs a method of cost-benefit analysis in place. Comm. Tushie stated that the granting of TIF assistance needs to be defensible and Economic Development Commission October 29, 1996 Meeting Minutes Page 4 • consistent, and in this case the construction of the ponding, road and watermain improvements do benefit all adjacent properties. Comm. Vogel stated that the assistance would also facilitate the improved rail service which was an action included in the EDC Strategic Plan.. 96.17 MOTION: Comms. Tushie/Pogatchnik moved to recommend to the City Council approval of Alcorn Beverage Company's request for TIF assistance in the amount of $392,664, approval of the TIF District No. 16 Plan, and denial of Progressive Rail's request for TIF assistance, with the following findings: (1) that Alcorn Beverage Company's request for TIF assistance is consistent with the city's policy and criteria for financial incentives, and (2) that the creation of T1F District No. 16 facilitates costly infrastructure improvements that benefit multiple parcels in Aidake Industrial Park. Motion carried unanimously. • 5. Project Activities Update. Mr. Sobota stated that activities for Minnesota Manufacturers Week 1996 were successful, and he noted that several of the EDC members were in attendance at the Manufacturing Recognition Banquet. He noted that the regional headquarters for Itron in the Fairfield Business Campus is complete and the company is planning to host an open house in January. Mr. Sobota stated that aribbon-cutting ceremony was held at the new AmericInn and was attended by some EDC members. Mr. Sobota stated that eleven industrial businesses have completed landscaping and screening in response to the City's land/sea container and semi-tractor trailer screening ordinance. The remaining eight companies are working with staff to complete landscaping/screening improvements by the June 1, 1999 deadline. Chair Brandy inquired as to the progress of the Town Square project. Mr. Sobota responded that Westwood Engineering is in the process of researching and acquiring the necessary wetland permits from the DNR. Comm. Tushie inquired about the status of the falls that were originally proposed. Mr. Sobota replied that preliminary engineering work has shown that there is a four foot difference in elevation of the pond that will allow for falls to be incorporated into the outlet construction. Mr. Sobota noted that staff has received inquiries regarding amulti-screen theater and . he stated that feedback from the EDC on this potential use or possible locations within Town Square would be helpful Chair Brandy stated that a theater could be an Economic Development Commission October 29,1996 Meeting Minutes Page 5 acceptable use as long as no traffic congestion issues are created. Comm. Tushie noted that multi-family housing or office uses seem more appropriate to the southwest corner of 202nd Street and Dodd Blvd., and he noted that providing adequate parking for a large theater use could be a major constraint. Comm. Pogatchnik stated that it may be helpful to get an anchor committed to Town Square prior to establishing other tenants. 6. Creation of Teams for Three New Strategic Issue Areas. Mr. Sobota stated that staff put together a suggested list of new teams based on their impressions of each EDC Member's experience and expertise. He noted that the list was provided only for discussion and is open to EDC Members' preferences. The three teams include: Team 1 -Providing the Resources, Team 2 -Marketing the Community, and Team 3 - Managing the Process. Comm. Tushie noted that his skills may be better suited for the Marketing team rather than the Providing the Resources team. EDC Members noted that perhaps Comm. Detjen would prefer to switch to the Providing the Resources team as well. EDC Members stated that they would also like to involve City staff as members on each team to carry forward with those that attended the Strategic Planning Session. Staff was directed to include other interested City staff in the make-up of the new teams and • provide a revised list for review at the next meeting. 7. Discussion of Meeting Schedule for Teams to Create A New Strategic Workplau. This item was tabled for discussion at the next meeting once the creation of new teams is complete. 8. Other Business. Chair Brantly stated that he spoke with Mr. Rick Krueger, Minnesota High Technology Council, after his presentation on hi-tech companies at the Manufacturing Banquet. He stated that Mr. Krueger commented on other cities such as Winona that are taking an active role in providing infrastructure for hi-tech companies, and Chair Brantly requested that staff provide additional information on this initiative in Winona. 9. Adjournment. The meeting was adjourned at 8:20 p.m. Respe~jct-fully~submit~ted: q~,~ ATTEST T iJGLGs-eC ~ i le E. Bennett, Recording Secretary oan Krejct, 'ec etary c:\winwordledclmtg 12031mn 102 99G. doc •