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HomeMy WebLinkAbout04-22-03 City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, `Aprr!t 22, 2003, .6:.00 p.m. City Ha11, 20195 Holyoke Avenue Lakeville, MiV 1. Call meeting to order. 2. Approve March 25, 2003 meeting minutes 3. Introduction of new Economic Development Coordinator:- Amanda`Alfson `4. Update on Subcommittee Recommendations on Himle Homer's Recommended Communication Strategies for Economic Development 5. Review of the Status of Dakota Future, Inc. (formerly known as the Qakota County Economic Development Partnership) 6. Discussion of Wage Floor Amendment to the Business Subsidy Policy 7. Update on Advanced Wireless Inc. Project 8. Directors Report 9. Adjourn Attachments: 1: March 21, 2003 Business Journal Article on Progressive Rail 2. Commercial /Industrial /Institutional Project Update s. _ ~ i a ,yr^r '~''..P City of Lakeville - ~ Economic Development Commission Meeting Minutes March 25, 2003 Marion Conference Room, City HaN Members Present: Brantly, Emond, J. Erickson, Gehrke, Matasosky, Schubert, Ex- Officio member Robert Erickson -City Administrator. Members Absent: Miller, Pogatchnik, Smith, Tushie, Ex-Officio member Todd Bornhauser. Others Present: Staff present: David Qlson, Community & Economic Development Director; Penny Brevig, Recording Secretary. 1. Call Meeting to Qrder. Chair Matasosky called the meeting to`order at 6:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. _ 2. Approve February 25, 2003 Meeting Minutes. Motion 03.06 Comms. Erickson/Emond moved fo approve the minutes of the February 25, 2003 meeting. Motion carried unanimously. 3. Introduction of New EDC Member Steve Gehrke. Chair Matasosky welcomed Steve Gehrke to the EDC. The EDC members introduced themselves. Mr. Gehrke provided the members .information on his ..background and why he sought appointment to the EDC. 4. Presentation of Himle Horner's Review of Communication Strategies for Economic Development by Todd Rapp. Mr. Olson introduced Todd Rapp of Himle Horner to present his firm's recommendations regarding possible new methods of communicating uniform messages about economic development in Lakeville and to respond to questions and comments from the EDC members. Mr. Rapp identified three items that could be improved on in the City's current written communications with residents and the community. More visuals and not as much text, repeat key themes in all communication materials, and make it r~ Economic Development Commission ~ ~ ~ ~ Meeting Minutes March 25, 2003 personal and interesting to the specific group that the information is being delivered to. Mr. Rapp summarized the reasons economic development will continue to be a key issue for residents, businesses and city leaders in Lakeville. He indicated that Himle Horner felt that the City and the EDC should utilize as many opportunities to communicate economic development plans to their residents and the .general public as possible. But, he also indicated that residents want to know more about the impact of economic development projects and planning on their lives. We need to link economic development goals and projects to core values of our community and its residents. Mr. Rapp indicated that the city's web site is an excellent way to communicate to the general public visually and suggested using more links and downloads of the city's publications. He stated that the city needs to keep looking for creative new venues to communicate our messages to the public. Mr. Erickson stated that Mr. Rapp's in depth review of the city's communication strategies far exceeded the City's expectations. Chair Matasosky agreed that the review was excellent and correct in stating that it is not the credibility, but the communicating that needed improvement.. Mr. Erickson stated that there is a common thread that goes beyond the EDC and that this information needs to be distributed to every department head in City Hall where everyone will benefit. Comm. Brantly stated that putting on a seminar presenting this information would be very beneficial. Mr. Erickson agreed that this approach would be invaluable. He indicated that a number of community groups should be invited, including the__ Chamber of Commerce, Service Clubs, the school district, etc. Mr. Rapp agreed that this was a good idea. He indicated that the directors of the departments should be first on the list to attend the seminar, along with similar major groups in the City that need to communicate economic development. The first seminars could be given by the consultant and after that, start building a network. Chair Matasosky suggested that the Communications Committee should be reconvened to develop some recommendations and create policies for the City Council to consider. Mr. Erickson indicated that Mr. Olson would request a proposal and cost estimate. from Himle Horner before the Communications Committee meets. G:\Economic Development\EDC1 DC Meetings\2003mtgs\03 March\minutes march 25.doc 2 e Economic Development Commission Meeting Minutes - _ - March 25.2003 Motion 03.07 Comms. Brantly/Emond moved to reconvene the Communications Committee to develop recommendations for City Council and create policies regarding a proposal from Himle Horner to conduct a seminar on Communication Strategies for Economic Development. The Committee would include Brantly, Emond, Matasosky. Motion carried unanimously. Mr. Olson thanked Mr. Rapp for attending tonight's EDC meeting and for his thorough review of communication strategies for economic development. 5. Review of Partners in Progress Report prepared by Dakota Electric Association Mr. Olson stated that the Partners in Progress report is prepared annually by Dakota Electric Association and. highlights the economic development achievements of the cities in Dakota County that are served by Dakota Electric.. He indicated that it .provides a brief summary of the development achievements in the other developing cities in Dakota County and allows Lakeville. to benchmark itself with the other communities in Dakota County. Mr. Olson stated that it's important to provide this information to Dakota Electric Association for this report. It doesn't cost the City anything and it's invaluable publicity. Mr. Olson presented a brief comparative analysis of the information contained in this report. He indicated that this report confirms that Lakeville is continuing to experience some of the highest levels of growth for both residential and commercial/industrial development in the County. 6. Director's Report Mr. Olson was asked by the EDC to provide an update on the Dakota County _ _ East-West Corridor Study. Mr. Olson explained the different corridor options being considered and which proposed corridors the City of Lakeville and the City of Farmington have agreed upon. Comm. Emond asked if Dakota County or the City of Lakeville is trying to acquire all of the road options. Mr. Olson indicated that the purpose of this study is to preserve the corridors when a development comes in. He stated that they hope to have the study completed by June of 2003. The purpose of the joint agreement with the City of Farmington is to demonstrate and document the consensus of the two cities regarding the proposed corridors. Mr. Olson stated that the City received approximately 25 applications for the initial posting of the Economic Development Coordinator Position. He indicated that six applicants were interviewed and two of those six were brought in for second interviews. Unfortunately, Mr. Olson indicated that none. of the finalists possessed G:\Economic Development\EDC\EDC Meetings\2003mtgs\03 March\minutes march 25.doc 3 Economic Development Commission ~ : ~ T Meeting Minutes b ~ " _ ~ March 25, 2003 the right combination of skills in both communications and marketing as well as economic development. As a result, the City has re-advertised the position and have modified the job posting so as not to place as much emphasis on communication and more on economic development experience and background and extended the advertising of the position to include neighboring states. Mr. Olson stated that Scruples Salon Products, Inc. was the featured business at the March 3, 2003 City Council meeting and was introduced by EDC Member Barry Pogatchnik. Mr. Olson indicated that Despatch Industries and Alcorn Beverages will. be featured at the April 7 and April 21 City Council meetings respectively. Mr. Olson. circulated a sign up sheet for presenters for'the Spotlight on Business. Mr. Olson stated that he presented the 2003 Strategic Plan Work Program as well as the 2002 accomplishments to the City Council at their March 17 meeting. Vice-Chair Pogatchnik was also in attendance at the meeting and provided comments on behalf of the EDC.. Mr. Olson indicated that the City Council extended their appreciation to the EDC for its efforts in 2002 and approved the Strategic. Plan Work Program for 2003. Mr. Olson stated that at the March 13, 2003 meeting of the Airlake Airport Advisory Commission meeting,_staff from the Metropolitan Airports Commission (MAC) introduced Ron Hansen, owner of Aircraft Resource Center. Mr. Olson- indicated that Mr. Hansen recently received lease approval from MAC to operate the main Fixed Based Operations building at the airport. Mr. Hansen recently purchased this part of the commercial operations at the airport from. Steve Wentworth. Mr. Wentworth will still own and operate a commercial hanger at Airlake. Airport and retain a lease with MAC. Mr. Olson stated that Mr. Hansen's lease will allow him to sell fuel, new and used aircraft and parts, offer aircraft maintenance and flight lessons. Mr. Hansen also plans to focus more on corporate aircraft sales and service that Mr. Wentworth was able to. Mr. Olson indicated that staff is hoping that Mr. Hansen will build on the improvements in facilities and service that were started last year by Mr. Wentworth and make Airlake Airport more attractive for corporate aircraft use. Mr. Olson stated that Mr. Hansen was willing to host a future EDC meeting or attend one of our regular meetings in City Hall. Mr. Olson stated that the Dakota County CDA prepared a survey on new housing units constructed in Dakota County cities in 2002. He indicated that some of the same information is also contained in the Partners in Progress Report, however, the CDA provides more detailed analysis and comparisons to the previous year. G:\Economic Development\EDC\EDC Meetings\2003mtgs\03 March\minutes march 25.doc 4 Economic Development Commission ~ Meeting Minutes ~ - March 25, 20Q3 Mr. Olson. stated that this report also contains new affordability information, housing and community development grants/loans that were received by Dakota County cities in 2002 and affordable housing units owned by the CDA throughout the County. The EDC had some discussion regarding getting up-to-date information on current projects/concerns/issues each .month. Mr. Erickson stated that updates of ongoing development issues will. be included in Mr. Olson's Director's Report each month so that the EDC members will be aware of the challenges that the City is faced with currently and perhaps be advocates for the City. Comma .Schubert. asked. if anyone had .seen: the excellent article in the March 21, 2003 Business Journal regarding Progressive Rail. Mr. Erickson indicated -that-a copy of the article will be included in the next EDC packet. 7. Adjournment. The meeting was adjourned at 8:00 p.m. Respectfully submitted by: Attested to: Penny ig, Recordin cretary R. T. Brantly, Secretary G:~Economic Development~EDC\EDC Meetings~2003mtgs~03 March~minutes march 25.doc 5 A enda Item 9 MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator FROM: David L. Olson, Community & Economic Development Director DATE: April 17, 2003 RE: Economic Development Coordinator Position I am pleased to announce that we have filled the position of Economic Development Coordinator. The Ciry has offered the position to Amanda Alfson who has accepted the position and is scheduled to begin work on May 19th. Amanda is currently an Economic Development Intern with the City of Hutchinson and is scheduled to graduate in May from St. Cloud State University with a Major in Community Development. A copy of Amanda's resume is attached. 24 Bradford St. SE Phone: (320) 587-5324 Hutchinson, MN 55350 E-mail: schwabe(~hutchtel.net nda K. n Objective Presently seeking afull-time position that will allow me to utilize my economic development knowledge while continuing to learn with hands-on experience. Education Bachelor of Arts in Community Development Anticipated: May 11, 2003 St. Cloud State University (SCSU) • G.P.A.: 3.54/4.0 Computer Skills Applications: Publisher, Word, Excel, PowerPoint, .Outlook, Community bevelopment Manager Recent Work 2003 -present City of Hutchinson Hutchinson, MN Experience Economic Development Authority Intem • :Establish and maintain the Hutchinson Community Development Commission loan program. and accounts • Perform research for business retention and recruitment • City ordinance research and survey • Coordinate Hutchinson Downtown Association meetings and events • Produce and distribute Hutchinson Downtown Association newsletter 2002 - 2003 Quinlivan S Associates, LTD St. Cloud, MN Consulting Assistant • Researched and compiled 56304 Demographic Analysis • Established east side business database • Grant research 2001 - 2003 Lady Wellness St. Cloud, MN Front Desk Assistant • Multi-tasked, organized and communicated effectively within team setting 2000 - 2001 SCSU -Office of Residential Life St. Cloud, MN Resident Advisor • Supervised students residing in Residence Halls • Organized and coordinated student functions Honors and -SCSU Dean's List -May 2002, December 2001, May 2001 Activities -Member, Community Development Club, SCSU - Employee of the year, Lady Wellness, 2002 - Volunteer, St. Benedicts Care Center, St. Cloud, MN ~A ee~ AA Agendas Item 1~1i ~1Yi~~~~ 1YI fi©. economic Development Commission CC: Robert Erickson, City Administrator FROM: ©avid I,.. Olson, Community & Economic Development Director_~'`'~ DATE;.: April 17, 2003 RE: Meeting of Subcommittee to Discuss Mimle Horner Recommendation Members of the C/1 Subcommittee met on Thursday, April 17th to begin to discussthe implementation of the Mimle Horner recommendations for communication stra#eg~s for.. economic development. It was consensus that the. initial presentative by Todd. Rapp cxf tY~ recommendations cx~ntained in his report should be made to the following individuals: Mayor ,lohnson EDC Chairperson Matasosky Plannir~ Cc~mrnission Chairperson Stolte City Departrr~nt Meads and other staff involved in external commu~catit;rr?s Chairperson Dahl of the ISD #994 Board ---1SD #194 Su#aerintendent Gary Amoroso ~,~~,r'~""^"~- ISD #994 Communications Director ~a Chamtaer of Commerce Presid®nt, Executive Director, communications staff y,~ Convention and Visitors Bureau Representative Editorial Board for Airtake News It was also the consensus to requ®st Mimle Horner to prepare a draft PavrerPoint presentation to include the key points and recommendations included in their report that would tae rased in the presentation to the individuals fisted above. The Subcommittee wrilt- meet again to review this draft presentation and further plan the event at which Mr. Rapp Witt make this presentation. `a?O-3~ ~ ~ ~rc~~ Agenda item MEMQRANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator FROM: David L: Olson, Community & Economic. Development Director DATE: April 17,:2003..... `RE: Update. on Dakota Future Inc. Attached is a memo from Taud Hoopingarner that summarizes the recommendations pertaining #o the creation of Dakota Futures Inc. This organization is proposed to replace the .Dakota County. Economic Development Partnership and would focus on: ~°"'Marketing Dakota County as a unified economic area ~~ti~ • Serving as a one-stop clearinghouse of economic development information • Facilitating public private cooperation. The proposed DakotaFuture Inca would be structured as a 501 c6) andlor a 501 c(3) in order 0 leverage both. private and public sector resources to put toward its goals. The: proposed. size of the Board of Directors would be reduced from 27 members to 17 members and would be comprised of representativesfromogencies and organizations listed on Exhibit A. The Organizational Task Force is also requesting consideration of a Memorandum of Understanding that attempts to better define the roles, contributions .and responsibilities of member.cities (and other organizations) and the new bakota Future lnc. In the draft Memorandum of Understanding, the City would agree to: Financially support Dakota Future's countywide economic development efforts such as marketing, information clearinghouse and public-private cooperation. • Provide city-wide economic development expertise and input to assist Dakota Future's county-wide. economic development activities. • Provide input to the Dakota .Future Board through active participation on the Dakota future Inc. Board of Directors, or' its subcommittees. The new membership dues structure has not been established for city. members of the proposed Dakota Future Inc... Lakeville's membership cost under the previous Dakota County Economic Development Partnership dues structure was $5,600 a year. It is not anticipated that this amount would increase significantly. In fact it has been suggested recently that City dues be reduced to $1000 for the first year while the new Dakota Future Inc. becomes more established, The City Council previously placed a hold on the $5,6~O that was included. in the - 2003 Economic Development Budget pending the outcome of the State Aid cuts being considered by the Legislature. 1f the :City is to consider. membership even at a reduced level of $1,000 for 2003, the City Council will need. to re-appropriate the necessary funding back into the 2003 Budget... Staff is not recommending approval of the Memorandum of Understanding at this `poin#. It is ..anticipated. that more will. be known in the next 30-60 days regarding the proposed initial dues structure and also what the consensus of other previous member cities on the pr©posed Dakota Future Inc. and finallythe impact of State Aid cuts to cities: being considered by the State Legislature._ C O U N T Y Dakota County Operations Management Dakota County Administration Center 1590 Highway 55 Hastings MN 55033 651.438.4418 Fax 651.438.4405 MEMORANDUM DATE: March 26, 2003 TO: City Economic Development Directors FROM:. Taud Hoopingarner, DCEDP Organizational Task Force Chair SkJBJECT: Creation of Dakota Future, Inc. Based upon our discussions; we believe that the businesses, public agencies and constituency of Dakota County will best be served by creating a new economic development organization that is focused on marketing the County as a unified economic area, serving as a one-stop clearinghouse of economic development information, and facilitating public-private cooperation. It is our belief that in order for us to be successful in this effort, this new organization, which we have tentatively named "Dakota Future, Inc.",will be structured as a 501c(6) and/or a 501c(3) in order for its staff and directors to leverage both private and public sector resources to put toward its goals. However, because of the unique nature of the organization's goals and relationship to other entities like the Community Development Agency, Workforce Council, city governments within Dakota County, and Dakota County government itself, we have-drafted a Memorandum of Understanding (MOU) for each organization that clarifies the roles of each of these members in this collaborative effort. Please take a few minutes to review the draft Dakota Future, Inc. bylaws, organizational structure and MOU's that we are proposing for this new organization. We are at a critical juncture in this process and need your thoughts and ideas on the viability of this approach as we consider rolling it out to our membership and Board of Directors. We look forward to meeting with you tomorrow to seek your feedback on new goals, structure and viability of this approach. Thank you for your continued support and commitment to ensuring that Dakota County's economy continues to expand, and that its businesses and residents may prosper as a result. If you have any questions regarding this update, please contact me at 651-438-4416. y MEMORANDUM OF UNDERSTANDING The purpose of this Memorandum of Understanding is to better define the roles, contributions, and responsibilities made by the (name of City) as a member of the Dakota Future, Inc., anon-profit corporation (hereinafter "Dakota Future"). WHEREAS, both (the name of Cityl and Dakota Future support the vision of expanding Dakota County's economy so that all businesses and residents may prosper; and WHEREAS, (the name of City) supports Dakota Future's mission to promote economic growth in Dakota County by marketing the county as a unified entity, serving as a one-stop information clearinghouse, and facilitating public-private cooperation; and WHEREAS, (the name of Ciy) agrees to the following in order to further economic growth within the county: 1. The (the name of Cityl will financially support Dakota Future's countywide economic development efforts such as marketing, information clearinghouse and public-private cooperation. 2. The (the name of City) will provide city-wide economic development expertise and input to assist Dakota Future's county-wide economic development activities, including tax increment financing, industrial park development, land and .building development and redevelopment searches. 3. The (the name of City) will provide input to the Dakota Future Board through active. participation on the Dakota Future Board of Directors, or its sub-committees. WHEREAS, Dakota Future, for its part, accepts roles, contributions, and responsibilities of (the name of C~ as expressed above, and acknowledges and agrees (the name of Citv)'s contribution satisfies the membership contribution required of (the name of City) to maintain good standing as a member of Dakota Future. FURTHERMORE, Dakota Future, agrees to the following. in order to meet the expectation of Daktoa County in furthering the economic growth within Dakota County:, 1. Market the county as a progressive, vibrant economic area. 2. Promote the retention, expansion and attraction of targeted industries in order to increase tax base, create jobs, and improve the quality of life in Dakota County. 3. Coordinate Economic Development activities on a countywide basis to support local and regional efforts. Act as a "one-stop" clearinghouse of information for all interested parties. 4. Promote technology, infrastructure growth, networking and communication between private/public agencies and economic development professionals to respond to problems and opportunities affecting Dakota County. 5. Partner with the Workforce Council to facilitate ongoing involvement and communication with Dakota County businesses. 6. Promote international trade opportunities between Dakota County businesses and interested parties from other Countries. 7. Act as the primary .point of contact for businesses interested in expanding operations or moving to Dakota County. Be prepared to initiate and respond to business expansion and location opportunities. C:\Documents and Settings\dolson\Local Settings\Temporary Internet Files\OLK3B\Citymou1202.doc f 8. Assist small business start-ups locate gap financing and identify resources to assist with their management and growth. Both parties agree that (the name of City) reserves the right to withdraw from membership in Dakota Future if the (the name of Cit Board does not approve future appropriations for membership contributions. Both parties further agree that the allocations as set forth above are subject. to change as jthe name of Cit costs and the needs of Dakota Future change. IN WITNESS WHEREOF, the parties have executed this Agreement, intending to be bound by its terms and conditions. DAKOTA FUTURE, INC. (the name of City) By: By. .Date: Date: C:\Documents and Settings\dolson\Local Settings\Temporary Internet Files\OLK3B\Citymou1202.doc . Proposed Changes 21:10/03 Approved 5/10101 EXHIBIT A Dakota County Economic Development Partnership BOARD OF DIRECTORS APPOINTMENT SCHEDULE AND PROCESS The Board of Directors are policy-level individuals appointed by contributing member and selected non-member organizations and individuals, according to the representation schedule described herein. The goal is to have a balance between public and private representation, and to fully represent different interest within the business, government, and education communities. Future adjustments in the appointment process and the representation allocation may be made as both the number of members and the composition of the membership changes. It is recommended that the Boazd Appointment Schedule and Process be reviewed on an annual basis, and that amendments be .made as determined by a 2/3-majority vote of the Board of Directors. All Board appointments. will. serve a term of two years. Category 1) Allocated Member Appointments Seat allocations • Member Cities - '11etivnsl~i~AsseeiAt}ert • Dakota County Workforce C'e~tt~c-il Investment Board 1 • Dakota County Community Development Agency 1 • Educational Organizations - DCTC & IHCC- 2 ~ Dakota County Representatives 1 TOTAL ~8 Category 2) Non-Allocated Member appointments (Full members. only) • Private Organizations -Construction. Developers. Architects Engineers, Real Estate firms -~-pY~a~„~R • Banking and Finance Institutions - DCC appointment 1 s~aa~lec-atieHS • Utility Companies • Chambers of Commerce - DCCE appointment 1 • Individual Members- • Other _ TOTAL x-49 C~Pger~+~-3 n'~ee&ted-l~len-1~4en~E'F-t~pp6tn~e~ntS • Dal~eta-~o~-R~egrese~t~ves r T~~ TOTAL BOARD OF DIRECTORS TOTAL X17 _Appointment Process Timeline The appointment process should be completed at least 30 days prior to the annual meeting of the Full Membership. Upon ratification at such meeting, the new Board of Directors will begin their terms. Appointment Process Appointments to the Board of Directors will be made through the following processes. Member Cities shall appoint a representative to serve on the Board of Directors. Each year, the City Councils of Dakota County municipalities will select a representative to serve on the Partnership Board. If possible, the individuals selected should be mayors or city council members. Cancellation of city membership shall result in city representative being removed from the Board of Directors, but that individual. may still retain any and all committee positions. '1';;~~~~ Member Citv Year of Selection Apple Valley 1999-00 (2002-04) Burnsville 1999-00 (2002-04) Eagan 1999-00(2002-04) Farmington 1999-01 Hastings 1999-01 I Inver Grove Heights 1999-01 Lakeville Rotation (2002-04) Mendota Hei lg_its Rotation I Northfield Rotation (2002-04) Rosemount .Rotation South St. Paul Rotation West St. Paul Rotation (2002-04) Dakota County Workforce Investment Board (WIB)~eil-shall meet and appoint a member of the WIBiI to fill the allocated seat for atwo-year term. Dakota County Community Development Agency shall meet and appoint a member of the Dakota County C.D.A. to :fill the allocated seat for atwo-year term Dakota County Board of Commissioners shall meet and. appoint an individuals to fill the allocated seat(-~), for atwo- year term. Educational Organizations that are members of the Partnership, including Dakota County Technical College and Inver Hills Community College, and any other educational organization that may from time to time become full contributing members, shall meet and appoint individuals to fill the allocated number of seats for Educational Organizations. The individuals selected should hold top policy-level positions. Appointments shall be made for atwo-year term except for the first year, in which one seat shall be for one year. Full Members of the Partnership not represented by the allocated appointments shall follow a process of open nomination and elect Board representatives from among themselves. Member organizations or individuals in this category may nominate individuals. These individuals. should be top-level corporate officers, board members, presidents, representatives, or the like. Appointments shall be made for atwo-year term except for the first year, in which half of the appointments in this category shall serve on year. By atwo-thirds (2/3) majority vote, the Board of Directors may increase or decrease the total number of seats in this category, according to the size and composition of these members, so long as the total number of seats on the Board, including allocated seats, does not exceed X21. Apple Valley $5.15 Burnsville $5.15 St. Paul Port Authority $9.50 Northfield $10.28 (60% of Median Wage in Rice Co.) Big Lake $12 (at least 50% of the jobs) $9.65 - (50% St. Cloud $12 Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator FROM: Davitl L. Olson; Community & :Economic Development Director DATE: April 17,:2003 RE: Amendment to Business Subsidy Policy The City. of Lakeville adopted a Business Subsidy Policy on February 22, 2000 in compliance with the Minnesota Business Subsidies Act (MS-116J.9'93-116J.995}; A copy of this previouslyapproved policyis`attached. Thispolicy has been utilized since thattme for projects that have received subsidies in excess. of $100,000. - A provision of he Act requires that granting agencies incorporate a specific wage floorfor the wages to be paid for he jobs created be included in; Business Subsidy Policies incorporated, into the policies by May 1, .2003...-The wage floor may be stated as a specific dollar amount or maybe stated_as a formula that will generate a specific dollar amount. Most local units of government have postponed incorporating this requirement into their policies until recently. The following isa sample of the wage floors that are being considered or fiave been approved, by several local agencies. AdditionaF examples will be provided at the meeting on Apri122~d. Dakota County CDA 150%° of the Federal Minimum Wage* Richfield HRA 110% of the Federal Minimum Wage City. of Rochester. 110%° of the federal Minimum Wage City of Elk River $15 per hour *The current Federal Minimum Wage is $5.15 per-hour.. Staff would suggest utilizing: a formula as opposed. to a fixed dollar amount that is likely to require updating more frequently. It should also be pointed out that the wage floor is a minimum andthe City will consider numerous aspects of aproposed. project in addition to.the wage levels of the jobs to be created .when determining whether a business subsidy is warranted. One reason to consider establishing a wage floor on the lower end of the range is that. certain types: of redevelopment projects are subject to Business Subsidy policies and the wage levels for jobs created in retail and- commercial, type projects tend to be lower than those created in the manufacturing sector. It is recommended that a public hearing be scheduled for the May EDC meeting to consider a proposed amendment to incorporate a .minimum wage floor into the City's current Business: Subsidy Policy. CITY OF LAKEVILLE LAKEVILLE ECONOMIC DEVELOPMEN'T' COMMISSION BUSINESS SUBSIDY POLICY This Policy is adopted for purposes of the Business Subsidies Act (the "Act"), Minnesota Statutes, Sections 116J.993 through 116J.995. Terms used in this Policy are intended to have the same meanings as if used in the Act, and this Policy shall. apply only with respect to "subsidies" as defined by the Act if and to the extent required thereby. The City of Lakeville and the Lakeville Economic Development Commission maintain several policy documents which speak to the general goals and objectives for the provision of public assistance for private development or redevelopment activities. These documents include, but are not limited to the current Strategic Plan for Economic Development and the Tax Increment Financing Policy. While it is recognized that the creation of good paying jobs is a desirable goal which benefits the community, it must also be recognized that not all projects assisted with subsidies derive their public purposes and importance solely by virtue of job creation. Worthwhile projects may provide value to the community in the forms of infrastructure improvements, stabilization of business districts or neighborhoods, or enhancement of economic diversity. In addition, the imposition of high job creation requirements and high wage levels may be unrealistic and counter-productive in the face of larger economic forces and the financial and competitive circumstances of an individual business. With respect to subsidies, the determination of the number of jobs to be created and the wage levels thereof shall be guided by the following principles and criteria: ¦ Each project shall be evaluated on a case-by-case basis, recognizing its importance and benefit to the community from all perspectives, including created or retained employment positions and other policy objectives of the City of Lakeville. ¦ In cases where the objective is the retention of existing jobs, the recipient of the subsidy shall be required to provide reasonably demonstrable evidence that the loss of those jobs is imminent. ¦ The setting of wage and job goals must be sensitive to prevailing wage rates, local economic conditions and/or external economic forces over which neither the grantor nor the recipient of the subsidy has control, the individual financial resources of the recipient and the competitive environment in which the recipient's business exists. ¦ If a particular project does not involve the creation of jobs, but is nonetheless found to be worthy of support and subsidy, it may be approved without any specific job wage goals, as maybe permitted by applicable law. ¦ Each project shall not only be evaluated against the Business Subsidy Policy but also against other applicable City or Economic .Development Commission policies, including the Comprehensive Guide Plan, current Strategic Plan for Economic Development and the Tax Increment Financing Policy. ¦ Because it is not possible to anticipate every type of project which may in its context and time present desirable community building or preservation goals and objectives, the governing body must retain the right in its discretion to approve projects and subsidies which may vary from the principles and criteria of this Policy. Agenda Jtem MEMORANDUM TO: Economic. Development Commission CC: Robert .Erickson, City Administrator FROM: David L. Olson, Community & Economic Development Directo DATE: April 17, 2003- RE: Update on Advanced Wireless Communications Project Based. on the provisions of the approved.. Contract: for Private Redevelopment dated April 1, 2002 and amended on July 15, 2002 and September 3, 2002, Coons Family LLC (d/b/a Advanced Wireless Communications) was to have. completed construction of the footings and foundation of its building on he lot they purchased from the Gity'in the Fairfield Business Campus by April 1, 2003:. Thin was not accomplished and as a result, on April 10th the City Attorney's office notified Coons Family LLC in writing that they were in defaulf of the and that they had 30 days to remedy this default'or the City woufd pursue its remedies available under the terms of the £ontract. Ben Coons provided the City with a letter also dated April 10, 2003 :(copy enclosed) that explains the situation regarding the status of their project and why construction had not .commenced on the building. The letter also indicates that they were very close to finalizing their lease #ermination agreement and this will allow them to move forward on their #inal :bank loan approvals and to proceed with commencement of the construction of;their project. The :City has also: received inquiries from another Lakeville business that is interested in possibly constructing a new building on this lot. This business owner has been informed that the City cannot consider his inquiry until both parties to the current contract have had th®- opportunity to exercise their remedies under this contract. Staff will continue to keep the EDC apprised as to the status of this project and its anticipated successful ;implementation in the near future. / - ~ :,1 y~- Y I~ Va_ E 1RELE ~ COMMUNfC 0NS April 10, 2003 David L. Olson Economic Development Director. City of Lakeville Lakeville City Hall Lakeville, MN 55044 Dear David, Please receive this letter as a follow up to my short voice mail to you yesterday regarding our development agreement. As I noted, I apologize for not calling sooner. This process has been agonizing for us on several fronts, both with our negotiation with Itron and our continued harassment from our friend next door at Pure Choice. Notwithstanding the above we are making some positive moves forward. The first item that was the most troublesome was the issue of our lease termination. Attached is a letter from Itron's local counsel outlining the-basis for the termination. I expect that we will have this finalized document within a week's time. The second item of interest to -you. is a meeting that we had with our bank yesterday. With the lease termination in hand (almost) the bank is moving forward on our final loan approval. The first step in that process is us providing. fresh numbers on the construction cost. We are meeting with Jack Matasosky this afternoon to accomplish that task. As soon as the bank gives us their - approval we will do a land breaking ceremony with the bank, our employees and hopefully folks from the City of Lakeville. We would actually begin construction as quickly as Appro can finalize plans and obtain the appropriate permits I very much appreciate the City's patience with Advanced Wireless and look forward to working closely with you as the process starts. I know. you are aware of some of the roadblocks we have had. I hope. we are past most of these. Thanks again! Sincerely, B Coons President/CEO 2osssxElvs~H ~ ARE YOU WIRELESS YET?~' t.A~EVI~~E,MN ,s MAIN 952.469.5400 TOLL FREE- 8 $2 ~4 FAX Q ;.r: www. adva tree ` G4•`'09~03 14:25 COLLINS BUCKLEY SflUNTRl' ~ HF~UGH ~ 9524690175 N0. 174 pQ2 . ° Frt~?i FA ~~GRE 8t ~E~SON (:~D~1 4• 9' q3 j ~ ~ 26~ST. 1 U - 25/1~'a• 4~b' 654233 P 2 e , FA.~~R.E & BEAISQN LLT' _ _ --•---R- - z2AO '~Rh:its FRxcc~ C=~Nri<x, 4~r Sotrsrt SevtN rri `TUrrT 1~4trrrir;.,+rv~,is, M]ryntSs,~•~ s94ns•39()1 euLklnKrNt [fj1.7e6.:'0a~ rAF.TCxe•:NJ. a~x'.u!Cr Yac:stMtif 612.766,16ot7 ~ne+••a" w a.:ai.LZOc v.-w w. (a~C~Y~.com Apz-i.19, 20p3 Patrick T. Tierney Calli~, Buekloy, Sautstcy & Laugh, P.L.L.P. West 114p First National Bank Building 332 Minnesota. Strom 5ais~t Paul, MN 55101 ~ 13 79 Ite: pr sal• Y.eaae T'erYxrinatio~~~~-t Dear Mr. '€iemcy: This letter will ccmfrm that on or about April 4, 2.UQ3, Ttron proposed that the parties enter into a lease termination agrtenunt f"Agreenietlt"). Several of the more impprtarit items is the proposed Agreement include: (a) AV~C vacates the sublease prc~nisos on ar befaro Aecember 31, 2003; (b} Itron ~d AWC release all claims against one Futgthe~r as of the date that the Agsearncnt is executed excetit for ANC's ~htigatians under the ]ease; ~c) The Agreement is contingent upon AWG's ability w ©btain acceptable financing with its lender within 30 days after the pz~rtiea execute the Agreiment; artd {d) ANC's obligation for rent ends ATovembst 15, 3.003• I am furnishing this letter to you with the understanding that it contains only $ broad outline of Ttrpn's progas$i. tt is subject ~ change by either party because there has been no agreement to cia~G vn the prc~poseti terms. Iviorevver, ~tran's c:ontii~uing po5ytinn is that share lbtinResnta GOl~rpdn 7ouru Lotido~ }rankfa+~ Sba.e~bai X14%09103 14:25 LOLLING SUCKLEY GAUNTRY ~ HAUGH Y 9524690175 N0. 174 D0 PE"nOM FAEGRE & BEA80N ~WE~j 4. 9' 03 14:27~ST. 1~:?5~'N0.4?61654??3 P 3 Patrick T. 'Tiensey ~4~rril zoos Pale 2 is na a~ecment bctwccn the partite until all terms are incor~rated into an Agreemcat ai~cti by both pstties. C)ur continuing discussi~ans art suhjeCt to R.ute 4~1R_ Very truly yours, "f' Gretchen 1. ,Augtut GJAalwpa . cc: ~Lu~ell Fttr~banks M2:~i348S6.o1 Life-Cycle Housing Development Recognition April 21, 2003 City Council Meeting On behalf of the Economic Development Commission, I wish to thank the Mayor and the City Council for the opportunity to participate in this recognition of Life- Cycle Housing Developments in Lakeville. The Economic Development Commission has identified the need to provide an adequate supply and diversity of housing opportunities as an important component of the City's Strategic Plan for Economic Development. Consistent with. that goal, the Economic Development Commission recommended that the developments that are being .developed in Lakeville that have units that meet current Life Cycle Housing affordability guidelines be recognized. The developments that are being recognized at tonight's meeting include over 250 units of affordable Life Cycle housing that have or are currently being developed in Lakeville. _ With that, I would like to introduce Guy Peterson. of the Metropolitan Council to provide a few comments. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator FR; David L. Olson, Community & Economic Development Director _ DATE: April 17, 2003 RE: April Director's Report The following is the Director's Report far April 2003. Spotlight on Business Despatch Industries was featured at the April 7th City Council meeting and was p (introduced by Camm. Emond. A copy of the memo that went to the City Council on his business is attached. res. ~l e~ l~ Alc rn Beverages will be featured at the April 21St City Council meeting and will be introduced by Comm. Schubert. A copy of the memo that was prepared for the City Council on this business is also attached. Life-Cycle Housing Development Recognition The City Council will be recognizing the six different Life-Cycle Housing ~Ce.,~? developments that have been or are in the process of being constructed in Lakeville. This recognition was recommended by the EDC at the February meeting. Comm.- " Schubert of the EDC and Guy Peterson of the Metropolitan Council will be participating in the recognition and presentation at the April 21St City Council meetin g- rv~e.~C_ re C ~~y~ ,--~1-~ 4atht, ConAgra Grant Signing City Council members along with EDC members were invited to participate in a grant signing ceremony at ConAgra along with Rep. Steve Strachan, Dr. Ron Thomas of the Dakota County Technical College, and a representative of the Department of Trade and Economic Development. ConAgra, in conjunction with Dakota County Technical College, secured a $325,000 Job Skills Partnership Training Grant that will be matched with funding from ConAgra to provided employee training on new automated equipment that will be installed in the Lakeville plant to increase its efficiency. Chair Matasosky was able to represent the EDC at this event and City Administrator Erickson and I were also able to attend. Commercial /Industrial /Institutional Project Update An update of the status of the Commercial /Industrial /and Institutional project list dated April 7, 2003 has been included with your packets. Additional updates on several of the larger projects include the following: • Crossroads -The City Council will be considering the Final. Plat and Development Contract for the first phase that includes the entire commercial portion of the project and the first phase of the single family residential. The Council will also be asked to approve the City. County Agreement for Dodd Blvd. which was resolved this week. • Gander Mountain and the Second High School project are scheduled to go the City Council on May 5th for final plat and development contract approval. The City Council also approved several actions at the April 7th City Council meeting regarding the Co. Rd. 50 and I-35 Project including: • The extension of the Moratorium for up to an additional twelve months in order to complete the acgbisition of five commercial properties and other smaller strips of right-of-way for the interim improvements and to officially map the Ultimate Improvements west of I-35. • Authorized the preparation of plans and specifications for the Interim Improvements to be constructed in 2004. Summer Meeting Schedule While summer is still more than a month away, I thought it would be appropriate to discuss the summer meeting schedule as .members {and staff) are beginning the process of planning summer vacations. I would suggest that we take amid-summer break and not have a meeting in July. The June meeting would fall on June 24th and the August meeting would be August 26th. If EDC members have other suggestions 22 rd quests regarding the summer meeting schedule, we can discuss them on April J p~ y MEMORANDUM To: Mayor and City Council City Administrator CC: David L. Olson, Community & Economic Development Director From: Sue Palm, Public Information. Specialis Date: April 1, 2003 Re: Spotlight on Business: Despatch Industries Spotlight on Business continues to inform residents on the benefits of C/I base to gain community support and appreciation for business growth (Goal #1 of the Economic Development 2003 Strategic Work Plan). Despatch Industries will be featured at the April 7 Council meeting. EDC member Jim Emond will be in attendance to present information on Despatch Industries and introduce company Vice President, David Wilson. Despatch Industries just celebrated its 100th anniversary fast year, having been founded in Minneapolis in 1902. Albert Grapp, the company founder, was a tinkerer and inventor who developed the first heaters for Minneapolis street cars. That creative breakthrough gave Despatch its start as a manufacturing company. The company still prides itself on being an innovative problem solver in thermo processing. Or, to put it simply, if heat is needed during the manufacturing process, Despatch can develop and manufacture the necessary equipment. Despatch operated as a two-man company until 1915, when increased orders for its products forced a move to larger facilities. Some of the company's first inventions included the-lined ovens for the Pillsbury Company, drying ovens for a moccasin manufacturer, custom ovens for armament production during World War I, and waterproof ovens for repair shops on ships during World War II. After the Second World War, the company developed and manufactured the high temperature ovens that were used by the pioneers of semiconductor manufacturing. Despatch moved to its Lakeville location at 8860 207th St. W. in 1951. They continue to be a problem solving company, with clients around the world, including 400 of the 500 companies on the Fortune 500. From ovens used to cure softball covers to 100-foot-long ovens that will be used for the wings of the 787, to high tech heat processors used in the manufacturing of computer chips, Despatch continues to develop and manufacture new and innovative custom thermo processing equipment for their customers. Today, this successful business provides employment to 125 -area residents. Located in downtown Lakeville, the company recognizes a responsibility to its residential and business. neighbors. The company. also recognizes a responsibility to its employees, and has created an innovative workplace that focuses on safety, lifelong learning, and being on the cutting edge. The company offers employees a variety of evening. classes as well. as interactive software programs for skill improvement and job advancement, developed with the help of Dakota County Technical College. In addition to employment, Despatch Industries provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated property market value of over $2.9 million to the company's building and. property. This market value resulted in the company's contribution of $105,358 in local property taxes for 2003 going to support the City, Dakota County and Independent School District 194. r emo To: Mayor and City Council City Administrator Cc: David L. Olson, Community & Economic Development Director From: Sue Palm, Public Information Specialist ` Date: April 14, 2003 Re: Spotlight on Business: Alcorn Beverage Co., Inc. Spotlight on Business continues to inform residents on the benefits of a strong commerciaVindustrial tax base, in order to gain community support and appreciation for business growth (Goal#1 of the Economic Development 2003 Strategic Work Plan). Alcorn Beverage Co., Inc. will be featured at the Aprii 21 Council meeting.. EDC member Jeannie Schubert will be in attendance to present information on Alcorn Beverage and introduce Terry North, president of the company. Truman Alcorn founded the Alcorn Beverage Company, Inc. in South St. Paul just after prohibition ended. Alcorn served as police chief of the city, and. his brother served as Mayor. The company did a steady business in the distribution of alcoholic beverages. After the death of Truman Alcorn in 1966, Bill North purchased the company. In 1977 he built a new facility at 7870 218th St. W. and moved the company to Lakeville. In 1985, Terry North purchased the company from his father, and since that time the company has grown five-fold. The company serves as a distribution and marketing business for a variety of brewing companies, including, Leinenkugels, Molson, Fosters, and the Miller Brewing Company. Alcorn distributes beverages to over 600. licensees in Dakota and Scott Counties, as well as half of Washington and part of Ramsey County. Licensees include restaurants, bars, and liquor stores. The Lakeville facility has been expanded three times since 1985 and the work force has grown from nine full-time employees to 45. In addition to employment, Alcorn Beverage provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated property market value of over $1,637,900 to the company's building i and property. This market value resulted in the company's contribution of $55,046 in local property taxes for 2003 going to support the City, Dakota County, and Independent School District 194. Alcorn Beverage. recognizes the importance of community involvement. Amongst many community donations, the company is a major corporate sponsor of Pan-O-Prog each year, and supports programs of the Community Action Council, based in Lakeville. I / _ %j emo To: Mayor and City Council City Administrator Cc: David L. Olson, Community & Economic Development Director From; Sue Palm, Public Information Specialise Date: April 16, 2003 Re: Life-Cycle Housing Recognition At the recommendation of the EDC, contributions in the development of quality fife-cycle housing will be recognized at the Apri121 Council meeting. The EDC has previously indicated that ensuring an adequate supply and diversity of housing opportunities is an important component of the City's strategic plan for economic development. EDC member Jeannie Schubert, Metropolitan Council Planning Analyst Guy Peterson, and Gommunity and Economic Development Director David Olson will present plaques to five developers in recognition of their development of over 250 units of life-cycle owner- . occupied housing priced under $170,000, and rental projects determined to be affordable under Metropolitan Council guidelines. These projects have recently been completed, or are currently under construction. Developments being recognized are: Town & Country Homes Cornerstone Lake -east of Pilot Knob Rd.and south of 170"' St Springbrook -north of 2Q5rh St. and east. of Kenrick Ave. Wensmann Homes Village Creek -west of Hamburg Ave. and south of Aronson Park. Wright Homes Mallard Shores -northeast corner of Pilot Knob Rd. and 170th St. to Donnay Lake Place - east of Pilot Knob Rd. and south of 170th St. Dakota County CDA Country Lane -east of Holyoke Ave., near Co. Rd. 50 7 4 1 ~ Strategies far growing. companies 4 • . ~ ~t> zt.~ ~ + er ` - 'R~ Y . t,~ ' ~ ' ,,-4 . F -z ma~aavd~~trR,~ r_s.^e~rsu ~~e~asi (L to r) Timothy t ~ ~ ~ ' Eklund, Duane Jenkins and Dave - Felton t t , J "i-w ~ / ~ - / P t s ~ or -ray one roc s row 8Y JAKE WEYER According to Maus, the cost per unit of transporta- EDITORIALINTERN ~ ]]n~1V~ • don using Progressive Rail is about half the price of Unless theyte playing Monopoly, most people GOO CL2aYl l n~ trucking. Rail is slower, howe~~er. wouldn't dream of buying a railway these days. b4aus said that on average, it takes a truck six days Pass go, collect millions of dollars in revenue, hire ~ to arrive in Bloomington from various departure 23 employees, acquire more than IDO customers, and CO mpa ~y l d points such as Galveston, Texas, or Seattle. A train will }mu've got Progressive Rail, take 12 days to travel the same distance. The trains The company is an independent industrial short- may be slower, but Mans says that four or five units, or rail line based in Airlake industrial Park in Lakevi0e. pieces of machinery, can fit on one train car com- Progressive Rail also owns track'in h'[inneapolis. real izes h is dream P~ to one or two units on a semi bed. Richfield and Bloomington. The railway began in In September 1996, Progressive Rail had five 1996 when ntrrent CEO Dave Fellon purchased 6 employees and six customers and moved 600 car- miles of track in Lakeville from Canadian Pacific loads of business. Today the company has 23 employ- e.. Railway. cleaning company kid. Fellon purchased the nearly ees, more than 100 customers and moves more than Fellon has been interested in the railroad industry abandoned Bloomington line in 2001 along with the 5,000 carloads of business annually. Fellon plans to since he was a kid. He started his own janitorial clean- track in Minneapolis and Richfield. hire between nine and 12 mare employees this year. ing supply company right out of high school, but left Progressive owns a total of I5 miles of railroad, all of According to Fellon, Progressive Rail made $3.2 it after a fewyears to work on old railroads, reclaiming it connected to Canadian Pacific's lines. Companies million in revenue last year and expects between $4 and recyclvtg rail materials. using Progressive can have products transported million and $5 million by the end of this year. The "If you're going to be successful, you better like from locations throughout the natioq on Canadian company has been profitable for the last couple of what you do;' Fellon said. Pacific lines, and Progressive will deliver the product years, and revenue is growing by 25 to 30 percent Barry Kadberg, an engineer for Progressive Rail, directly to the company. each year. discovered just how much Fellon liked. what he was Many companies that use Progressive Rail have Progressive Rail has received funding from doing back in themid-1980s, when Fellon was fresh buildings located on their own spurs of track so that Associated Bank, Prior Lake Bank, Provincial Bank out of high school. Kadberg was woding in manage- products can be delivered directly. For companies and Commerce Bank. Fellon said more than $10 mil- ment for Canadian Pacific Railroad. that are not located on the railroad, Progressive Rail lion has been invested in Progressive Rail so far. f "I got a goofy call one day fiom a kid who was just has a fleet of four semi trucks with different trailer "We haul everything from manure to peaches,' If out of high school and had his own cleaning busi- attachments for different products. Progressive Rail vice president Timothy Eklund said. Hess," Karlberg said. "He asked if we were considering Bloomington Caterpillar equipment deafer "Ziegler "What really keeps us going, though, is that we never selling the Bloomington line. [told (my bossl about Inc. has used Progressive Rail for about six months, let ourselves say,'Hey, we've got it licked now.' We just the call and he told me I nright end up working fora according to the companys inventory eonttal man- keep working at it every day. ' guy like that someday." ager. )olut Maus. Maus said before Progressive Rail, After 37 years of working for 11 di(1'erent railway 7regler relied 100 percent on trucking to receive its jwey~@6kjourokcan ~ (fi12i 28&2138 companies, Karlberg is working for Fellon, the goofy heay~ machinery.