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HomeMy WebLinkAbout06-23-92 * ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES NNE 23,1992 The meeting was called to order at 7:05 p.m. in the City Hall conference room by Chairman Emond. Members present were Emond, Erickson, Brantly, Hanlon, Detjen, Matasosky (late). Members absent: Tushie, Berg.. Others present: Mayor Duane Zaun; Elizabeth Halbach, Chamber of Commerce. Robert Erickson, City Administrator; Michael Sobota, Community and Economic Development Director. 92.07 Motion was made by Erickson, seconded by Brantly to approve the minutes of the March 24, 1992 EDC meeting. Motion passed unanimously. Mr. Sobota presented the tax increment financing application submitted by Imperial Plastics. He reviewed the application and noted that the City Council had called for a public hearing to establish a tax increment district. The City's redevelopment consultant, Walt Hartman, had determined that the district would qualify fora 15 year renewal and renovation district. The company is proposing a 34,000 square foot • addition to their existing 15,000 square foot building as well as purchasing approximately 1.2 acres of land from the City. John Gambell, owner of the company, was considering a move to Farmington unless additional land could be made available for the project. Mr. Sobota presented the TIF plan with revised information based on a determination b the County Assessor on the valuation of the project. He noted that TIF funds were budgeted for the replacement of the Hamburg Avenue bridge, storm sewer improvements on site, storm sewer area charges, $88,000 to the company for site improvements and rehabilitation costs, and reimbursement to the City of $25,000 for the land. The Commission discussed storm water improvements in Airlake Industrial Park. They noted the inequities that have occurred in Those property owners that have paid storm sewer area charges and those that have not. They also discussed other incentives that have been provided by the City to various businesses in Airlake. Discussion noted that many of the subsidies were provided at different times with no consistent policy. It was also noted that storm sewer area charges could be paid by tax increment financing from existing and future tax increment districts. Robert Erickson noted that excess TIF funds from the Despatch and Toro projects have been programmed for solving downtown/Airlake storm improvement problems. TIF from Airlake current and future projects could be ear marked to solve Airlake drainage problems. Mr. Sobota noted that the general rule of thumb on new TIF projects is that a $250,000 improvement project should be the minimum size. The EDC felt that would be a good minimum for • retention/expansion projects. fi S • ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES NNE 23, 1992 PAGE2 92.08 Motion was made by Erickson, seconded by Brantly to direct staff to review the TIF policies and present a proposal to the EDC for Airlake storm improvements to be funded through tax increment funds. Motion passed unanimously. The EDC then noted that Imperial Plastics was a strong company. The proposed TIF plan presented awin-win situation for the City and the Company. 92.09 Motion was made by Erickson, seconded by Detjen to recommend to the City Council approval of the tax increment application of Imperial Plastics and to establish a tax increment financing district. Motion passed. Matasosky abstained. Chairman Emond then called on City Administrator Robert Erickson to present a report on the Growth Management Plan adopted by the Strategic Growth Management Task Force. Mr. Erickson stated the original goals were related to the fiscal capacity of the City. However, the Task Force also reviewed sewer capacity issues as well as growth controls. He further noted that • the background of the study included presentations from a number of resource people includingg the School Districts, Jack Matasosky on industrial development, Dr. Morns on the City survey, and Mr. Dorfman and Mr. Pulshur regarding fiscal and legislative concerns. Recommendations contained in the report were presented to the City Council by Bob Vogel, a member of the Task Force. The Task Force included a recommendation to extend the moratorium on residential platting nine months. Mr. Erickson indicated approval of the report would be on the City Council agenda for July 6th. After discussion, all members indicated strong support for the Task Force report. 92.10 Motion was made by Erickson, seconded by Hanlon to thank the Task Force members for their excellent work and recommend the adoption of the report to the City Council. Motion passed unanimously. Chairman Emond called on Mr. 5obota to present retail sales information and pull factor data developed by the Minnesota Extension Service. Mr. Sobota noted that the pull factors are a calculation on how much of the retail sales in particular categories are being captured by the local businesses within the cotnnlunity. Mr. Sobota reviewed Burnsville, Apple Valley, Eagan and Rosemount information as well as information regarding Lakeville. Discussion centered on the relative strength of each of the communities and different types of retailing. A discussion on potential markets for • additional retail development was also held. Chairman Emond indicated this would be helpful information for other businesses within the community. • ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES JUNE 23,1992 PAGES Neat, Chairman Emond called on Mr. Sobota to review the Dakota County Rental Housing Report. Mr. Sobota indicated the report was developed by the Dakota County Housing and Redevelopment Authority on market rate rental housing. The market rents were detailed for one, two and three bedroom units. The vacancy rate had gone up slightly in Lakeville because of the 70 unit Johnson Apartments coming on board. Members of the Commission reviewed the report noting that 24 percent of the mobile home units in Dakota County are in Lakeville. Mayor Zaun also indicated that many of the single family homes in Lakeville are under $100,000 valuations. Mr. Erickson indicated that the Growth Task Force's recommendation is to increase lot sizes in order to balance the housing within the community. Chairman Emond then called on Mr. Sobota to present the program and project report. Mr. Sobota stated that the City HRA had approved acquisition of the grain silos for $98,300 plus taxes and costs. Commission members held a discussion regarding potential alternatives for the Windsor Plaza expansion. Mr. Sobota also noted the various business proposals that have been sent out as well as other activities relating to economic development. He also noted that the Dakota County Economic Development Partnership is sponsoring "A Night on the River" July 30th. He asked members of the EDC to check their schedules and let him know if they could • attend. Meeting adjourned 9:45 p.m. Respectively submitted: !/~I _ Michael Sobota, Rec rding Secretary ~ ~w ri cson, Secretary 1 •