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HomeMy WebLinkAbout2. EDC minutes 5.24.22 DRAFT CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES May 24, 2022 1. Acting Chair Collman called the meeting to order at 4:00 p.m. in the Council Chambers. Members Present: Comms. Rick Bjorklund, Lowell Collman, Jim Emond, Sarah Lundberg, Jack Matasosky, Andrew Phillips, Glenn Starfield Ex-officio Members Present: City Administrator Justin Miller, Mayor Douglas Anderson Members Absent: Comm. Jessica Christiansen, Bob Gillen, Don Seiler Staff Present: David Olson, Community & Economic Development Director; Kati Bachmayer, Economic Development Coordinator; Jerilyn Erickson, Finance Director 2. Introduction of new Community Development Director Tina Goodroad City Administrator Miller introduced the City of Lakeville’s new Community Development Director Tina Goodroad. Ms. Goodroad has been hired to replace Mr. Olson, who retires on June 6. Mr. Miller explained that the Community Development Director position has been restructured to oversee the planning division when the City’s current Planning Director retires. Ms. Goodroad then shared information with the EDC about her professional background in the public and private sector, including her most recent position with the City of Dayton as City Administrator/Development Director. 3. Approval of April 26, 2022 Meeting Minutes Comms. Starfield / Phillips moved to approve the minutes of the April 26 meeting. Motion carried unanimously. 4. Presentation of Estimated Market Value Increases for 2023 – Jerilyn Erickson, Finance Director Ms. Erickson presented information regarding Lakeville’s estimated market value increases for 2023. The City of Lakeville has experienced significant growth with the taxable market value increasing from $5.7 billion in 2010 to a preliminary estimate of $11.6 billion payable in 2023. Ms. Erickson noted that even though the total value has increased $5.9 billion during that time, the distribution of values by asset classification has not changed significantly. The payable 2023 median “estimated market value” for residential properties is $428,600. Ms. Erickson stated that due to the City’s significant growth and conservative tax levy increases, Lakeville’s tax capacity rate has declined since 2013 and is the lowest since 2010. Mr. Miller reminded the Economic Development Commission Minutes May 24, 2022 Page | 2 EDC that Dakota County has the lowest tax rate in the state and Lakeville has the lowest tax rate in Dakota County. He also informed the group that although the number of housing sales has decreased in 2022 compared to 2021, the sale value of those homes has continued to go up. 5. Presentation on Existing Tax Increment Districts / Projects Mr. Olson provided an update on the City’s tax increment financing districts. Lakeville currently has six active tax increment districts: TIF 10-Fairfield, TIF 18-Menasha, TIF 19- BTD, TIF 22-Launch Park, TIF 23-Schneiderman’s, and TIF 24-QA1. The projects in these TIF districts have significantly increased the City’s tax base and retained and/or created a total of nearly 900 jobs (at the time of each district’s last required reporting). Mr. Olson informed the EDC that TIF 10-Fairfield must be decertified by December 31, 2022. In 2016, the City Council approved resolution 16-31 which authorized up to $375,000 for qualified costs to be paid to MOM Brands Company, LLC as a tax abatement using the City’s General Fund. This resolution also authorized a tax abatement district to be formed once TIF 10-Fairfield was decertified. The EDC was asked to make a recommendation as to whether the City should create a tax abatement district or if the City should write off the interfund loan and allow the Fairfield properties to be added to the City’s tax base starting in 2023. Comm. Matasosky said the TIF districts report tells a compelling story and is evidence that these projects have been of great benefit to the City. Comms. Matasosky / Lundberg moved to approve a write-off of the MOM Brands Company interfund loan, which would allow the TIF 10-Fairfield properties to be added to the City’s tax base starting in 2023. Motion carried unanimously. 6. Director’s Report Mr. Olson presented his final Director’s Report. He noted that the City Council recently approved three major projects during its May 16th meeting, including a 100,000-square-foot medical office building in the Timbercrest Development, a 400,000-square-foot spec office warehouse building in the southeast quadrant of Cedar Avenue and CSAH 70, and a 276,000- square-foot cold storage warehouse to be located east of Cedar Avenue and south of CSAH 70. Comm. Matasosky and fellow EDC members thanked Mr. Olson for his dedicated years of service to the City of Lakeville and wished him well during his retirement. 7. Adjourn Meeting adjourned at 4:59 p.m. Respectively submitted by: Kati Bachmayer, Economic Development Coordinator