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HomeMy WebLinkAbout06-24-03 City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, June 24, 2003, 6:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order. 2. Approve May 27, 2003 meeting minutes 3. Update on Himle Horner's PowerPoint Presentation on Communication Strategies for Economic Development 4. Update on Advanced Wireless Inc.. Project 5. Update on Budget Issues 6. Director's Report 7. Adjourn Attachments• 1. May /June 2003 EDAM "The Developer" Newsletter with Articles on Dakota County and KKE Architects 2. June 3, 2003 StarTribune Article on Discount Grocer Aldi 3. June 13, 2003 Business Journal Article on Gander Mountain 4. June 13, 2003 Business Journal Article on merging DTED and DES A enda Item 9 MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: June 19, 2003 RE: Himle Horner Communication Strategy Presentation The PowerPoint presentation prepared by Himle Horner has been modified to include more visual and graphics.. Staff appreciates the input from EDC members on the presentation and we have attempted to incorporate as many of the suggestions as possible. The presentation by Todd Rapp of has been scheduled for Tuesday, July 1St at noon at the Community Room in the Water Treatment Facility. A copy of the invitation letter and the list of persons invited to the event is attached. EDC members that are available and interested in attending are encouraged to do so and please RSVP to Amanda. June 18, 2003 «FirstName» «LastName» «JobTitle» «Company» «Address l» «City», «State» «PostalCode» Dear «FirstName»: The City of Lakeville, along with guest speaker Todd Rapp of Himle Horner, Inc., invite you to attend a presentation on Developing a Coordinated Communications Strategy for Economic Development. The presentation will be held on Tuesday, July 1 from 12:00 p.m. - 1:00 p.m. at the Water Treatment Facility Conference Room. Box lunches will be provided. The goal of the Himle Horner Communication Strategies for Economic Development presentation is to provide recommendations on how to communicate uniform messages about Economic Development in Lakeville to residents and other members of the general public. This presentation is a steppingstone to achieving Goal #1 of the Economic Development 2003 Strategic Work plan which is "to inform residents on benefits of Commercial /Industrial base to gain community support and appreciation for business growth. Please RSVP Amanda Alfson at (952) 985-4425 or aalfson@ci.lakeville.mn.us by Friday, June 2Z. Sincerely, Jack Matasosky Economic Development Commission Chairperson City of Lakeville 20195 Holyoke Avenue • Lakeville, MN 55044 Phone (952) 985-4400 • FAX (952) 985-4499 • www lakeville.mn.us ,tom Jack Matasosky Lowell Miller Stolte Mayor Bob Johnson EDC Chair 17427 Hazel Court City of Lakeville 21476 Grenada Avenue Lakeville, MN 55044 Lakeville, MN 55044 Bob Erickson Dave Olson Amanda Alfson City of Lakeville City of Lakeville City of Lakeville Lea Guenther Sue Palm Jeff Lueders City of Lakeville City of Lakeville City of Lakeville Jim Schiffman Chris Vogt Linda Walter City of Lakeville City of Lakeville City of Lakeville David Martens Daryl Morey Keith Nelson City of Lakeville City of Lakeville City of Lakeville Dennis Feller Allen Braun Ginny Zarras City of Lakeville City of Lakeville City of Lakeville Gary Amoroso ISD #194 Superintendent Brenda Visnovec Don Volk 8670 210t" Street West City of Lakeville City of Lakeville Lakeville, MN 55044 Todd Bornhauser Gary Tholkus Chamber of Commerce Ex. Director Menasha Corporation Steve Michaud P.O. Box 12 8080 West 220t" City of Lakeville Lakeville, MN 55044 Lakeville, MN 55044 Bob Brantly Barry Pogatchnik Jeanne Britton EDC Board Member EDC Board Member Convention & Visitors Bureau 16660 Irwindale Way 19069 Orchard Trail P.O. Box 12 Lakeville, MN 55044 Lakeville, MN 55044 Lakeville, MN 55044 Joan Krejce Ken Owen Performance Office Papers Di Hed Yokes Inc. Holly Dahl 21673 Cedar Avenue 21467 Holyoke Avenue 18698 Kanabec Court Lakeville, MN 55044 Lakeville, MN 55044 Lakeville, MN 55044 .r Jeanne Poepl Special Projects Director Linda Swanson Todd Telin Mpls St. Paul Magazine ISD #194 Communications Director Chamber of Commerce President 220 56th Street 8670 2 i 0th Street W est P.O. Box 12 Suite 500 Lakeville, MN 55044 Lakeville, MN 55044 Minneapolis, MN 55402 Todd Rapp Karla Hartmann Himle Horner Ina Lakeville Area Arts Center 8500 Normandale Blvd. 20965 Holyoke Avenue Suite 720 P.O. Box 835 Minneapolis, MN 55437 Lakeville, MN 55044 i A enda Item 9 MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: June 19, 2003 RE: Update on Advanced Wireless Communications Project At the May EDC meeting, staff reviewed three issues that were being addressed by Advanced Wireless Communications to resolve a default in the Contract for Private Redevelopment. A copy of the memo that was discussed at that meeting is attached. Resolution of these issues was necessary in order for the project to move forward. Staff is pleased to report that all of the issues identified in the May 22, 2003 memo have been resolved. The last issue being the closing on the construction and permanent financing which occurred on June 19th. I would specifically like to acknowledge the efforts of Mathew Foli at the Campbell Knutson law firm. Mr. Foli ensured that the City's interests in the project were protected while at the same time working with the other attorney's and lenders involved in the project to make it a reality. Site work has commenced on the site and aground-breaking ceremony has been scheduled for 10:00 a.m. on June 23rd at the site. EDC members should have received invitations to the ground-breaking and a copy of the invitation is also enclosed. CAMPBELL KNUTSON Professional Association Attorneys at Law Thomas J. Campbell {651) 452-5000 John F. Kelly Roger N. Knutson Matthew J. Foli Thomas M. Scott Fax (6S 1) 452-SSSO Soren M. Mattick Elliott B. Knetsch Marguerite M. McCarron Joel J. Jamnik * Gina M. Brandt Andrea McDowell Poehler Writer's Direct Dial: (651}234-6214 Matthew K. Brokl* Writer's a-mail: mfoli(a3ck-law.com 'Also licensed in Wixonsin June 19, 2003 Mr. Ben Coons Chief Manager Coons Family, LLC 20855 Kensington Boulevard Lakeville, MN 55044 Mr. Thomas E. McEllistrem, Esq. Collins, Buckley, Sauntry & Haugh, P.L.L.P. West 1100 First National Bank Building 332 Minnesota Street St. Paul, MN 55101-1379 Re: Contract for Private Redevelopment City of Lakeville and Coons Family, L.L.C. Dear Mr. Coons and Mr. McEllistrem: Attached for your reference, please find correspondence to Mr. Coons and Mr. McEllistrem dated April 10, 2003 and-May 7, 2003, respectively. This letter serves to inform you that the redeveloper has cured. the default under the terms of the contract for private redevelopment. Sincerely, CAMPBELL KNUTSON Professional Association BY: Matthew J. Foli MJF:dmo cc: Robert A. Erickson, City Administrator -City of Lakeville David L. Olson, Community and Economic Development Director -City of Lakeville Suite 317 • Eagandale Office Center • 1380 Corporate Center Curve • Eagan, MN 55121 Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic. Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: May 22, 2003 RE: Update on Advanced Wireless Communications Project Considerable progress has been made on this project since the April 22, 2003 meeting of the EDC. The City Attorney's Office provided Advanced Wireless a letter dated May 7, 2003 that specifies the items need to completed by June 9, 2003 in order to resolve the current default on the Contract for Private Redevelopment as amended. A copy of this letter is attached. Amendment to Sublease Agreement Advanced Wireless has reached agreement with its current landlord on a Lease Termination Agreement. This agreement has been signed by Itron Inc. and requires that Advanced Wireless vacate their present leased space by December 31, 2003 or be faced with a monthly lease payment three times their current rate. Approval and Issuance of a Building Permit A complete building permit application was submitted on May 12, 2003. The initial review letter for this building permit application will be completed by May 23, 2003. This will allow adequate time for any remaining plan revisions or additional submittals that may be necessary to issue a building permit by June 9, 2003. Closing on Construction Financing The City has received a copy of a signed Commercial Loan Commitment dated May 1, 2003 from Landmark Community Bank, N.A. for the Advanced Wireless Project. All indications are that Advanced Wireless will be able to close on this construction financing and also receive approval of its permanent project financing by June 9, 2003. Staff will continue to keep the EDC apprised as to the status of this project. It is possible that a ground-breaking for this project will occur prior to the next meeting of the EDC. << a~.~li~:,1:~~t~~>~1,~ ~t.t1i~1{;i~.ili:"its. Your Invited 7o A Ground Breaking Ceremony ~ VA1~ E REL.E 5 C 0 M M U N I C 10 N S 20809 Kensington Boulevard Lakeville, Minnesota C p M~ U N I C f 4 N S . ~ June 23rd, 2003 I Oam Coffee & Donuts Served ~fnllowing Ceremony RSVP to Aggie at 951.464.1 f 7 f ny June 10th, 1043: Ram Dote: June-loch, 1003 nda Item Age MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE June 19t", 2003: RE: Update on Budget Issues Attached please find a copy of the Messages page that will run in the Life and Times on June 21St. City Administrator Bob Erickson will give the EDC an overview recently adjourned State Legislative Session and how their actions will impact the City's budget in both 2003 and 2004. Mr. Erickson will also attempt to answer any questions EDC members may have on this important issue. Memo Box June 24 -Economic Development Commission, 6 p.m. • ~ June 25 -Farmers Market downtown, 208th & Holyoke, noon to 5 p.m.; dedication of town clock, 4:30 p. m.; Wednesdays on Main concert, 6:30 .m. • • Council announces budget adjustments to offset $2.4 million loss Earlier this year, when-the Governor and the Min- The loss ofthis levy prevents adequate funding for Lakeville practices prudent financial nesota Legislature began working on a state budget to increased service delivery due to growth. Some growth management remedythe $4.2 billion deficit, the City Council immedi- indicators are shown below: "The Governor andthe Legislature's actions do not ately began identifying possible budget adjustments to Each year in Lakeville: entrust communities like Lakeville with fiscal discretion, lessen the impact of state aid cuts. However, the Population increases by approx. 4% (1,700 despite proven effective financial management," said resulting cuts to cities, especially metro high-growth new residents) City Administrator Robert Erickson. cities like Lakeville, have been much more severe than • Police calls for service increased 8% (29,379 For example, in nine of the past 10 years, City anticipated. to 31,654) from 2001-2002 departments have employed entrepreneurial practices "Lakeville has always prided itselfon a lean budget, Fire calls increased 11 % (710 to 782) from resulting in under spending their budgets; the one year so opportunities for reductions were extremely diffi- 2001 - 2002 in which the budget was entirely spent related to severe cult," said Mayor Robert Johnson. "It's a significant 11 new lane miles of street to plow and weather conditions. challenge to maintain current service levels for our sweep Despite being the fastest growing community in the owin o ulation and our business communi while 10 new acres of parks to mow and maintain gr gp P ty state, Lakeville spends only $299 per capita. The City facing dramatic reductions in state aids." Cities can levy back for a portion of two losses ranks with Eagan as one of the two cities over 2,500 To help cities deal with some ofthe impact resulting Population having the lowest expenditures per capita, Elimination of Local Government Aid (LGA) from state aid cuts, the Legislature authorized that based on a report issued by the State Auditor. The Lakeville City Council has been an advocate communities could levy back 60 percent ofthe LGA and for eliminatingLGAformorethanadecade,reasoning MVHC state aids lost for 2003 next year. $X C~t~~~~IrS SCCl1 C~~~~ that the elimination ofLGAwould create a level playing No allowances were made for the loss of long- field (more equitable distribution) for all Minnesota standing levy authority for growth factors and implicit Lakeville $ 299 cities. In February, shortly after legislators began draft- State-W Ide aVePa e $ 561 ing a plan to address the deficit, the City Council Price indicators. g identified local budget cuts that equaled the loss of Minneapolis $1, ~ 1 ~ 2004 budget considerations $499,158 in LGA. (Some of the cuts are listed below.) The loss of state aid and severe levy limitations sent Gluality of life is best measure of wealth the Council back to the drawing board to reexamine the Although the daily media often groups Lakeville (w t CLit t ~ 4 ~t.~.t adopted 2003 and 2004 budgets, assisted by the City d. ~ with so-called "wealthy" suburbs, the Mayor and City S~ .I SS C,ti . ~ "~4~ Administrator and the Finance Director. The Council Council believe the community's "wealth" can best be • No out-of-state travel revisited existing services and programs, including non- measured not in dollars but in quality. of life. • Eliminate Fire Department's dive property tax revenue sources, which resulted in the In the most recent community survey, respondents rescue team following: ranked Lakeville number one (out of40 communities) in • Vacant position savings the following categories: • Snow removal savings 2004 Budget Considerations • Defer vehicle replacements o-p~,ope~,_ta~ revenue • Police protection • Reduce departmental training , Transfer Municipal Liquor fund # •Parkmaintenance • Eliminate new hires (street profits of $527,357 to general fund"" • Street repair and maintenance maintenance 8~ police records clerk) Utilize cable franchise fees to ~ • General condition and appearance of properties finance Public Information Dept. •Emphasisonenvironment nCl LISA O$Sr O • Transfer a portion of cash reserves - • Internet access and use of the City web page ~(i'~C 6~i6,21 $151,577 Reduction of Market Value Homestead Credit • Increased Geographic Information "Just as many families have had to tighten their (MVHC) System fees for developers belts duringtheseuncertaineconornictimes,so,too,the Also,theStateLegislaturedrasticallyreduced.Market • Establish City electrical inspection City is cutting back," said Mayor Johnson. Value Homestead Credit aid to cities for 2003 and 2004. service "We have made every effort to select cutbacks that Thisimmediatelosscouldnothavebeenanticipatedbythe • Increase Arts Center fees will have the least direct impact on services to our City Council. The Council determined that the operating Eudget cuts (partial diet} residents. We will continue to work together with the reserves can be utilized to fund the 2003 reduction in • Evening use of Water Treatment community to make sure that Lakeville remains the MVHC; budget cuts ornon-property-tax revenues would Facility community room .great place to live and work that it is today." be needed to finance the 2004 MVHC reduction. D.A.R.E. Program • Warming house attendants 2005 and beyond 111'1l,IBi TOSS O Irt~pliClt PrICe • Beach lifeguards Mayor Johnson said, "The Legislature needs to ndiCr"~tOf $3$$,672 • Funding for Pan-O-Prog fireworks provide the financial tools to enable cities to deal & events effectively with growth. Let the City Council manage Elimination of Implicit Price Indicator Biennial community survey our City. That's what we were elected to do!" Also removed by the Legislature was the implicit . Contract snow removal He added, "Levy limits must be eliminated to price indicator, a mechanism that allowed for specific . Ditch mowing ~ prevent a furtherreduction in service delivery. In 2005, cost increases. These included personnel costs and . Tree trimming the City will need to hire two additional police officers, commodities such as motor fuels, natural gas an_ d • parks -Major maintenance additional police clerical support personnel, a street electricity. maintenance position and a park maintenance position." n n Ua ~ BOSS ® He went on to say, "We are hopeful that Minnesota's "The 2004 transferof all municipal liquorfund profits l.eV Aeuthority $6i0,~38 to the General Fund representsasignificantchange economy will improve, enabling the Governor and Elimination of levy authority for growth in the City's long-standing policyforfinancing general Legislature to address the projected future state deficit TheLegislaturedealtgrowthcommunitieslikeLakeville building improvements. The City Council has, forthe without further impacts on growth cities." previous 15years programmedtheuseofmunicipal If ou have concerns uestions, or comments anotherseriousblowfollowingllthhourOmnibusTaxBill liquorstoreprofitstofinancemajorbuildingprojects y ' 9 please leave a message for the City Council at (952) Conference Committee deliberations, removing levy au- (e.g. Police Station, Fire Stations, Public Works thoritytoaccountforresidentialandcommercia]/industrial facility, LiquorStores and City Hall), eliminating the I 985-4410, ore-mailcounci]info@ci.lakeville.mn.usand a Council Member will return your call (C/I) growth. The growth factor mechanism had been in need to incur debt with interest expense. as soon as possible. place for approximately two decades. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FR: David L. Olson, Community & Economic Development Director DATE: June 19, 2003 RE: June Director's Report The following is the Director's Report for June 2003. Downtown Drycleaner / Carwash Property Update The City Council approved a purchase agreement with Wells Fargo Bank to sell the City-owned former Drycleaner Carwash property at their June 16, 2003 meeting. Under the agreement, Wells Fargo will construct additional parking adjacent to their Downtown location on the site for both bank use and use by other Downtown businesses. The City Council also accepted a quote of $17,455 from Hoffbeck Trucking Inc. to complete the demolition of the building. This demolition is funded with CDBG funds and is scheduled to be completed prior to the start of Pan-o-Prog activities. Spotlight on Business Comfort Inn was featured at the June 2nd City Council meeting and was introduced by EDC Member Jim Emond Sr. Aztec Industries was featured at the June 16, 2003 meeting and was introduced by EDC member Dick Miller. Copies of the memos that were provided to the City Council on these two businesses are attached. Fairfield Property Business Campus Property Owner Annual Meeting The annual meeting of the Property Owners Association will be held on Wednesday, June 25, 2003. This annual meeting, which is coordinated by City staff, is required by the Association Bylaws and involves the election of Directors and Officers and also authorizes the budget and the fees for the maintenance of the landscaped boulevards and other common areas of the Business Campus for the coming year. Main Street Manor Clock Hopefully EDC members have had an opportunity to see the new clock that has been recently installed in the sidewalk along Holyoke Avenue adjacent to Main Street Manor. This project was a cooperative effort of the Downtown Lakeville Business Association, the Dakota County CDA and the City of Lakeville. A dedication ceremony for the new clock has been scheduled for Wednesday, June 25tH at 4:30 p.m. at Main Street Manor. Belzer Chevrolet, Dodge, Kia Groundbreaking A groundbreaking ceremony will be scheduled within the next one -two weeks for the expansion at Belzer's for which work has recently already commenced. EDC members will receive invitations in the mail for this event. Cloverleaf Cold Storage Cloverleaf Cold Storage, based in Sioux City Iowa, is considering the purchase of the former Merrilat facility located at 21775 Cedar Avenue. This building has been vacant and for sale for approximately 18 months. Cloverleaf would remove the easterly portion of the existing building that has lower ceiling heights. This would be replaced by 124,000 square foot freezer warehouse addition and a possible second phase freezer warehouse expansion of an additional 75,000. The Planning< Commission discussion issues regarding the exterior materials, parking, and screening provisions in the current ordinance that would apply to this proposed project. Cloverleaf will be incorporating suggestions of the Planning Commission regarding the color of the exterior metal panels of the proposed addition as well. as additional landscaping and berms along Cedar Avenue. The Planning Commission will hold a public hearing on the proposed project on July 17tH July Meeting A reminder to EDC members that the regularly scheduled meeting of the EDC in July has been cancelled. .The next regular meeting of the EDC will be August 26tH Have a great Fourth of July Holiday and Pan-o-Prog! ?.r~ z ~i.-~ F t~ ~ ;F t ~-~ri~'~.i~EMQF~~tY~Viar~ i a~..c+~{'~ ~~X l `A TO: Mayor and City Council City Administrator CC: David Olson, Community & Economic Development Director FROM: Amanda Alfson, Economic Development Coordinator DATE: May 28, 2003 RE: Spotlight on Business: Comfort Inn The purpose of the Spotlight. On Business program is "to inform .residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2003 Strategic Work Plan). Comfort Inn will be featured at the .June 2 Council. Meeting. EDC member Jim Emond will be in attendance to present information on Comfort Inn and introduce hotel manager, Mitch Philliber. Built in 1996, the Comfort Inn in Lakeville is one of 1,916 Choice .Hotel International Inc. Comfort Inn hotels worldwide. There are currently 113 additional hotels under development. In the 9th Annual Business Travel Awards Extra list in the April 2002 issue of Entrepreneur magazine called Comfort Inn the "best low- priced hotel value." Comfort Inn is located ad~acent to Schneiderman's Furniture near I-35 on County Road 50 at 10935 176 h Street W. Their close proximity to the interstate conveniently serves both business and pleasure travelers with a focus on "luxury on a budget." With 40 standard rooms and 16 suites, the Comfort Inn in Lakeville offers plenty of space. The Comfort Inn has an indoor pool and also offers a complimentary continental breakfast. Whirlpool suites are also available. The Comfort Inn employs 20 full and part-time people from the Lakeville area. In addition to employment, Comfort Inn provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of $1.4 million to Comfort Inn's building and property. This estimate has resulted in a company contribution of $54,438 in local property taxes going to support the City, Dakota County, and Independent School District 194 in 2003. H - ~ z. Sf .S g' MEIYFOI`1Y'AI~QCJ11~4 r'+xr~_ t~~;r r{ .'ter frt~i!"'SNT ~ ~i+t"-Y o~ ~ ~ y.. . 4. TO: Mayor and City Council City Administrator CC: David Olson, Community & Economic Development Director FROM: Amanda Alfson, Economic Development Coordinator DATE: June 12, 2003 RE: Spotlight on Business: Aztec Inc. The purpose of the Spotlight On Business program is "to inform residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #1 of the Economic Development 2003 Strategic Work Plan). Aztec Inc. will be featured at the June 16 Council Meeting. EDC member Dick Miller will be in attendance to present information on Aztec Inc. and introduce Operations Manager, Dave Sersen. When Aztec Inc. relocated from Bloomington to Lakeville two years ago, they brought with them over 30 years of experience with enhancing metal parts with quality Plastisol Molding and Dip Coatings. Operations Manager, Dave Sersen has been with the company for 28 years. Their 33,000-sq.ft building is located at 21455 Hamburg Avenue. Along with their parent company Activar, Inc., Aztec Inc. works with Plastisol Dip Coating, Molding and Fluidized Bed Powder Coating. Plastisol, a form of poly- vinyl-chloride (PVC), Dip Coating can be found on many objects and is often the preferred choice for items such as playground equipment, boat anchors and many tools. Plastisol Dip Molding entails using a mold of an actual part, submerging it in PVC and curing it in an oven to make a hollow plastic form that fits over an object. Some of the products produced from this process are slip-on grips, clamp pads and shifter boots. Fluidized Bed Powder coating is used to coat irregular shaped objects. Aztec Inc. has used Fluidized Bed Powder coating on items like test tube and musical instrument holders. The machinery at Aztec Inc. allows their employees to process large orders in a small amount of time. For the month of May, Aztec Inc. coated approximately 160,000 "S" hooks. Their machinery has the capacity to process between 300,000 - 400,000 hooks per month if necessary. Some of Aztec Inc.'s customers include Rainbow Play Systems, Smartecarte, Peer Chain Company, Wenger Corporation, Sico America and Landscape Structures. Not only does Aztec Inc. complete commercial orders but custom orders as well. Aztec Inc. is currently processing an order for hospital equipment with only two parts! Aztec Inc. currently employs 14 full and part time employees. In addition to employment, Aztec Inc. provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of $1.1 million to Aztec Inc. building and property. 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