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HomeMy WebLinkAbout03-26-91 CITY OF LAI{EVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES MARCH 26, 1991 The meeting was called to order at 7:05 p.m. in the City Hall Conference Room by Chair Berg. Members present: Brandy, Berg, Emond, Erickson, Hanlon, Matasosky, Tushie, Meledandri. Absent: Detjen. Also present was Michael Sobota, Community and Economic Development Director; Robert Erickson, City Administrator; Elizabeth Halbach, Executive Director Chamber of Commerce. 91.10 Motion was made by Emond, seconded by Erickson, to approve the minutes of the February 26, 1991 meedng as written. Motion passed unanimously. Michael Sobota presented informadon on the mortgage revenue bond first time home buyer program. He explained that the City Council had set a hearing date for April 1 and was asking for input regazding the proposed program He indicated that the proposal was for allocation of revenue • bonds from the State Housing Finance Agency to fund a first time home buyer program on existing housing. The Dakota County HRA would act in behalf of the City and the City would be the sponsor for the program. He indicated there currently is a first time home buyer program that included new construction as well as existing homes that was operated on a County wide basis. In 1990, Lakeville received 23 percent of the funds from the County allocation. There were restrictions on the funds including the purchase price not being in excess of $97,840 and the maximum ad'usted gross income of the first time buyer would be approximately $36,00. There was discussion among the members that it was a positive program and that it would be operated through local lenders. Mr. Sobota explained that the Mazquette Bank was a lender under the current program; that the New Market Bank had been approached but felt they did not have adequate staff to handle the application procedures; and that the First National Bank was currendy participating out of their Monticello office. There was a question as to whether they would be able to participate in the program given that arrangement. Mr. Sobota explained that the funds for the program typically are exhausted in a very short period of time and that there is no nsk for the City related to the bonds. Commission members felt it was a no lose situadon for the City and that it would assist families with below rate mortgages for existing housing. 91.11 Motion was made by Tushie, seconded by Brandy to recommend approval to the • City Council the mortgage revenue bond first dme home buyer program. Motion approved unanimously. • ECONOMIC DEVELOPMENT COMMISSION MINUTES MARCH 26, 1991 Page 2 Mr. Sobota provided information on the Thorwin Building. He indicated that the City became aware that the property was tax forfeit and that it may be possible for the HRA to acquire the binlding for a purpose outlined in the HRA statutes. Mr. Sobota stated the HRA statutes are very broad and that creation of 'obs, preservation and enhancement of the tax base or other economic development purposes would fit under that statutory definition. Mr. Sobota presented a number of issues related to the building including the value of the building; on environmental appraisal of the building and property; potential uses of the building; cost of rehabilitation of the building; and property tax consequences. Members of the Committee discussed the situation. Chair Berg noted that if the City would proceed with attempting to obtain title, it may spur the former owner to pay the taxes on the property. Other members indicated their concerns regarding the process and whether the former owner had an option to reclaim it, given this was the second time that it had gone into tax forfeiture. Matasosky noted that there may be an existing mortgage on the building and that information should be obtained. 'There was also concern that the City should not acquire the building unless it would be a last resort and that other private entrepreneurs should be given the • opportunity to acquire the building. Discussion focused on the fact that the previous owner had previously gone through the tax forfeiture procedures only to re-acquire the building at a last minute. 91.12 Motion was made by Emond, seconded by Meledandri to table the issue and to 1) check to see if there is a mortgage against the property and 2} check to see if the previous owner has an oprion to reclaim the property; and 3) not actively pursue the project at this time. Motion approved unanimously. Mr. Sobota presented information on the Airlake Ai ort Survey. He stated that the survey was to assist in determining the need for the expansion of the runway at Airlake Airport from 4,200 feet to 5,000 feet. Mr. Sobota noted that the Airlake Airport Advisory Commission would be making a formal recommendation to MAC at their May meeting and that this would be an op ortunity for the Economic Development Commission to provide input. After reviewing the responses, discussion of the Commission indicated that the survey does not show that there is an overwhelming community need at this point. Commission members stated they would not be able to take a position unless there was a demonstrated need such as a proposed industry that required the expansion. There was also a discussion that the tax laws were changed where there is not as great an incentive to own corporate aircraft. Others noted that LakevIlle is located only 20 minutes from the international airport. No formal action was taken. • ECONOMIC DEVELOPMENT COMMISSION MINUTES MARCH 26, 1991 Page 3 Chair Berg invited Sheree Spear, Field Representative for Minnesota Project Outreach to give a presentation on the Teltech Data Base Program. Ms. Spear indicated that Teltech is a privately held corporation that provides information services to businesses throughout the United States. Teltech is working with the Department of Trade and Economic Development, the University of Minnesota, and the Greater Minnesota Corporation on a two year $4.8 million dollar program to assist smaller businesses in accessing Teltech resources. She stated that under the current program, small companies can receive five free uses of the data base services per year through the public access locations. She noted there was a location m Bloomington and in Rosemount at the technical college. Minnesota Project Outreach is also selecting 400 companies to receive 15 free uses per year through computer and modems established within their own comparry offices. She stated that the criteria is that they must have under $10 million m sales; be Minnesota based and provide the computer and modem equipment. Members of the Commission were impressed with the information services and applicability for small businesses. Ms. Speaz gave a number of examples of companies using the technical services for particular manufacturing problems; for design problems; and for identification of expert services. She also indicated that economic development organizations could use the five free uses at public access points. She indicated that currently one company, Royal Milk, located in Lakeville, is signed up for the program. Members of the Commission indicated interest in marketing this program to the industrial and entrepreneurial community in Lakeville. Ms. Spear indicated that a workshop could be established and a demonstration could be provided should the economic development commission wish to organize such an event. Chairman Berg appointed Bob Brantly, Jack Matasosky, Dan Hanlon and Elizabeth Halbach to a subcommittee to establish a date and put a marketing plan together to invite the business community to the demonstration. The Commission noted that no industrX should be excluded and that perhaps the Economic Development Commission could receive one or two of the 400 slots available to use in the Lakeville economic development marketing program. Ms. Spear will confirm whether or not unlimited access would be available to economic development organizations. Chair Berg thanked Ms. Spear for her presentation. Chair Berg next called on Mr. Sobota to present information on available industrial sites. Mr. Sobota reviewed the hmited locations in the industrial ppark that have sewer, water and street access. Because of the Airlake/RTC law suit, a very limited number of sites were available. He reviewed the information on the sites and it was generally agreed that pputting together a format of marketing information at this time would not be a high priority given the limited number of sites. Chair Berg then called on Mr. Sobota to present the project reports. Dan Hanlon noted that he had attended a financing meetmg with Mr. Sobota and had learned about the SBA 504 program. There will be additional t • ECONOMIC DEVELOPMENT COMMISSION MINUTES MARCH 26, 1991 Page 4 information forthcoming. Mr. Sobota highlighted the activity for the month and answered questions. Members of the Commission also noted the new airport siting resolution that the City Council had passed on the proposed new airport and other information enclosed in the packet. The meeting adjourned at 9:09 p.m. Respectfully submitted: ' /2~-~- ichael Sobota, Recording Secretary ATTEST: L T ie, ecretary •