HomeMy WebLinkAbout2. EDC minutes 8.27.24 DRAFTCITY OF LAKEVILLE
August 27, 2024
1.Acting Chair Collman called the meeting to order at 4:01 p.m. in the Marion Conference
Room.
Members Present: Comms. Rick Bjorklund, Lowell Collman, Joe Eykyn, Jack Matasosky,
John Swaney
Ex-officio Members Present: Mayor Luke Hellier, City Administrator Justin Miller,
Chamber President Krista Jech
Members Absent: Comm. Victor Arredondo, Rebecca Bergin, Andrew Phillips, Don Seiler,
Glenn Starfield
Staff Present: Tina Goodroad, Community Development Director; Kati Bachmayer,
Economic Development Manager
Guests: Jason Aarsvold, Ehlers
2. Approval of Minutes
a. June 25, 2024, EDC meeting minutes
A quorum was not present at the start of the meeting; therefore, the vote on this item was
delayed until the end of the meeting. The vote took place at approximately 5:25 p.m.
Comms. Matasosky / Bjorklund moved to approve the minutes of the June 25 meeting.
Motion carried unanimously.
3. Agenda Items
City Administrator Miller asked to present his item first, so the agenda order changed to a.
Franchise Fees Update, b. Strategic Plan for Economic Development and c. Cannabis
Zoning Update.
a. Franchise Fees Update
City Administrator Miller provided an update to the EDC on the City Council’s
franchise fees proposal. The City Council has reviewed and discussed the franchise fee
model during its February 26 work session, April 22 work session, and July 22 work
session. The proposed fee structure will add a franchise fee of $6 to Lakeville utility
accounts at CenterPoint Energy, Minnesota Energy Resources, Xcel Energy and Dakota
Electric Association. The fees will be used to pay for public safety improvements at the
City’s fire stations and the construction of the FiRST Center, which will be the south
metro’s premier training facility for first responders. More information about the
proposed fees and public safety projects can be found at LakevilleMN.gov/1288/Utility-
Franchise-Fees.
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EDC members had concerns about the proposed franchise fees and its financial impact
on Lakeville businesses. There was robust discussion around the proposed fee
collection structure, including the ease and ability to charge per account versus per
meter and using the franchise fee model versus adding to the levy. A strong
recommendation was made by members to keep the added cost to taxpayers as
transparent as possible.
b. Strategic Plan for Economic Development
Jason Aarsvold from Ehlers was in attendance to present Lakeville’s final 2024-2028
strategic plan for economic development report. During the meeting, Mr. Aarsvold
reviewed Lakeville’s refined economic development goals and the tools available to
achieve them. Tools discussed include EDA, HRA and Port Authority development
districts with levying authority. Many neighboring cities currently collect an HRA/EDA
levy and carry a development fund balance to help meet their economic development
goals. Mr. Aarsvold encouraged the group to consider any future added financial
resources and/or increased capacity affecting the tax base to be viewed as an
investment in the local economy. The 2024-2028 Strategic Plan for Economic
Development will be used to inform and guide the City’s economic development
activities over the next five years.
c. Cannabis Zoning Update
Ms. Goodroad provided an update on cannabis zoning to members. Legalization of
cannabis was signed into law on May 30, 2023 (Chapter 342 of MN Law). Commercial
growing, processing, and retail sales will fall under the regulation of the new state
Office of Cannabis Management (OCM) who will begin licensing likely in early 2025.
Special pre-approval (2024 legislation) will be conducted this summer for verified social
equity applicants for the following license types: microbusiness, mezzobusiness,
cultivator, retailer, wholesaler, transporter, testing facility and delivery service. Social
equity applicants with license pre-approval may begin growing cannabis prior to
adoption of final OCM rules but no retail sales can take place until final rules are
adopted.
The OCM will be responsible for all commercial regulation including licensing split
between cultivation, manufacture, distribution, and retail (see Guide for Local
Governments). Cities are responsible for registration. If the business has a valid state
license, passes the compliance checks, and has paid all the fees and taxes, the city must
issue the registration. State Statute requires that a city must issue at least one
registration per 12,500 residents. For Lakeville, this means up to six registrations.
Due to the changes made to the law in the 2024 legislative session, the City of Lakeville
will be updating its Zoning Code to include license types in the business districts.
4. Marketing Efforts
a. Economic Development Report
Ms. Bachmayer shared July highlights from the Economic Development Report,
including the groundbreaking for Midwest ENT’s new medical office building and Ms.
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Goodroad participating as a panelist during the upcoming Minnesota Real Estate
Journal Cannabis Real Estate Summit on September 6.
5. Adjourn
Meeting adjourned at 5:31 p.m.
Respectively submitted by:
Kati Bachmayer, Economic Development Manager