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Home My WebLink About02-15-01 / .f lL, City of Lakeville Economic Development Commission Special Meeting Agenda Thursday, February 15, 2001, 7:00 p.m. Staff Lunch Room Lakeville City Hall 1. Call meeting to order. 2. Approve January 23, 2001 meeting minutes. 3. Airlake Development -Park Dedication Fee Status Update 4. United States Postal Service Facility -Heritage Commons 5. Adjourn. 2001, January 23 1 G:\AFlad\ECONDEV\EDC\2001mtgs\2February 15 Special\021501 special agenda.doc Economic Development Commission Meeting Minutes January' 23, 2001 - City of Lakeville Economic Development Commission Meeting Minutes January 23, 2001 6:00 p.m. City Council Chambers Members Present: Schubert, Miller, Tushie, Pogatchnik, Brantly, Matasosky, Vogel, Ex- Officio member Bornhauser, alternate member Erickson. Members Absent: Emond. Others Present: Arlyn Grossing, Community & Economic. Development Director, Ann Flad, Economic Development Coordinator. Visitors: Dave MacGillivary, Paul Steinman and Mikaela Huot of Springsted Public Finance Advisors; Greg Smith and Nancy Smith. 1. .Call Meeting to Order. Chair Vogel called the meeting to order at 6:04 p.m. in the City Chambers. 2. Approval of November 28, 2000 Regular. Meeting Minutes. Motion 01.01 Comms. Tushie/pogatchnik moved to approve the November 28, 2000 meeting minutes. Motion carried unanimously. 3. Election of Officers Motion 01.02 Comms. Pogatchnik/Matasosky moved to re-elect Bob Vogel as-Chair, Jack Matasosky as Vice-Chair and bob Brantly as:.-, Secretary of the Economic Development Commission for 2001. Motion carried unanimously. 4. Incentive Study. Dave MacGillivary, Paul Steinman and Mikaela Huot of Springsted Public Finance Advisors were present to discuss the incentive study they will be undertaking for the EDC as authorized by the City Council on January 16, 2001.- Mr. MacGillivary gave a presentation on Springsted and some of the projects they previously completed. .The Commissioners indicated their desire to create unique characteristics in Lakeville, incorporating a balance of unique shopping experiences and big-box retail in order to avoid becoming a replica of other suburbs. The commissioners felt that the methods used to recruit and incentivize business must therefore be different than those offered by other communities. Mr. Steinman indicated that these are concerns addressed in -the creation of market demand when recruiting .certain niche businesses. Many businesses base-their location decisions on factors other than financial .incentives. ..Those factors often include the existing labor force, infrastructure, availability of sites, and transportation. Incentives typically make a difference when all other things are considered .equal 1 G\/WFlad\ECONDEV\EDC\2001mtgs\01Jan\0123016 min.doc ~ Economic Development Commission s ~ Meeting Minutes ~ January 23, 2001 submitted the additional required information. The Smith project proposes to expand the Gregory`Smith Dental practice into the neighboring building, formerly the A-1 Driving School building. Funds are being sought by-the Smiths to address code improvement issues including electrical, plumbing and foundation work in the A-1 Driving School building, along with installing ADA bathrooms. Additionally, work will be done on theexisting,dental building and the newly acquired building to-bring both exteriors up to the design standards set for in the. Historic Fairfield District of Downtown Lakeville Design Guidelines. The Smiths have submitted all required documentation, including detailed drawings and bids for the interior improvements, drawings and estimates for the exterior improvements, evidence that their business meets the City's parking requirements, evidence. of sufficient private funds to complete the project, and evidence of taxes paid. A warranty deed for the former A-1 Driving School property. was .provided, however the County process for recording it will not be complete for several weeks. The grant agreement between the City and the Smiths indicates the Smiths will be reimbursed for up to $70,000 of code improvements. that are indicated in the grant agreement. ,The code improvement work must adhere to Downtown Code Improvement Program guidelines and requirements set forth in the grant agreerrient. Additionally, reimbursement-will be made once the code improvement portion of the project and the exterior improvement portion of the project are completed to the` satisfaction of the City's Building Official and once all Davis-Bacon wage information is presented. Comm. Miller indicated the EDC has been striving to promote downtown improvements and the Smith's project is a great beginning to the redevelopment of downtown. The Commissioners indicated that the project was a very good use of the $70,000 of CDBG funds. Additionally, it was noted that several banks in Lakeville would continue to offer low-interest loans to people who would like to undertake building improvements downtown. Motion 01.03. Comms. Pogatchnik/Miller moved to recommend that the City Council enter into a grant agreement to provide $70,000 of CDBG funds to Greg and Nancy smith; rustees of the Nancy Papatola Smith Living Trust,.for the improvement of the trust's two downtown buildings. Tushie abstained. All others in favor. Motion carried. 6. Review Labor Force Subcommittee/Chamber of commerce joint meeting with Industrial Businesses regarding Airlake Leadership and the HR Commi#tee. Ms. Flad indicated that the Labor Force Subcommittee met per the EDC's request in order to determine a strategy for_implementing leadership in Airlake to undertake the Page 3 of 5 Economic Development. Commission 'R Meeting Minutes January 23, 2001 labor force suggestions. The subcommittee and the Chamber of Commerce then jointly hosted a meeting for Airlake businesses on January 18, 2001 at Ryt-Way Industries. -.The purpose of the meeting was to determine interest in pursuing labor force strategies, and to determine whether this could be accomplished through the H.R. Committee of the Chamber or through development of a new group. There were over 22 business representatives present, and other businesses indicated their desire to participate in the future. The businesses were receptive to operating under the HR Committee structure, thus the subcommittee will pursue implementing that strategy of implementing leadership in Airlake. The businesses will meet again in early February to determine the structure of the committee and to develop an action plan. 7. Status Update on Park Dedication Fees Mr. Grussing indicated that the City Council approved new park dedication fees at their December 15, 2000. meeting. The fees are .now $5,400/acre for commercial .property and $3,200 for industrial property. Mr. Grussing also indicated that in anticipation of the new rate, the Regans, dba Airlake Development, submitted a check to pay the park. dedication fees under the 2000 formula for land not yet platted. The Regans and their attorney met with Council members at a City Council work session. The Regans were advocating pre-payment based on limited value or the assessor's market value rather than the estimated market value the City of Lakeville uses to determine Park Dedication value. Motion 01.04 4 " Comets:"Tushie/Miller moved to inform the City Council thaf th'e EDC intended that property owners affected by park dedication changes would have the option to pay their park dedication fees in advance of the new rate's effective date, and therefore the EDC recommends the Council accept payment consistent with rules that were in effect prior to rate's increase. Comm. Matasosky abstained. All others in favor. Motion carried. 8. Letter from United States Postal Service Real Estate Specialist regarding site under consideration for new Lakeville Post Office. Mr. Grussing presented aletter-from the U.S. Postal Service .indicating that one site was currently under consideration for development of the new postal facility. This site is located at Heritage commons.. Commissioners questioned the appropriateness of a bulk postal facility at that site, noting that the volume of large trucks that a bulk facility would require may negatively impact the retail uses at Heritage commons. Motion 01.05 Comets. Tushie/Brantly moved to inform the City Council that the EDC supports the development of a retail postal facility at the Heritage commons site, and that the Council encourage the development of a bulk postal distribution center at an alternate .location. Motion carried unanimously. Page 4 of 5 Economic Development Commission ~ Meeting Minutes January 23, 2001 9. Proposal to hold future EDC meetings off-site. - Mr. trussing indicated that the addition to City Hall is under construction. This construction will make the administration conference room unavailable for EDC meetings. for the next several months. Off-site locations are being sought for the next. few EDG meetings. Appro Development and Miller-Hartwig Insurance are both available. 10. Appointments to the High-Tech Subcommittee. Afithe September 26, 2000 EDC meeting, the commission recommended that the EDC Chair appoint two people to serve on the newly formed High Tech Subcommittee along with Telecommunications Commission members Robin Selvig and Dough Thompson. Chair Vogel appointed Comms. Miller and Brantly to be the EDC representatives on the High Tech Subcommittee. 11. Adjourn. Meeting adjourned at 8:47 p.m. Respectfully submitted by: ~n-, Attested to: ' r Ann Fla ecording Secretary R.T. Brantly, Secretary Page 5 of 5 MEMORANDUM ' TO: Economic Development Commission FROM: Arlyn Grussing, Community and Economic Development Director DATE: February 9, 2001 RE: U. S. Postal Facility The US Post Office is looking at constructing a new postal facility for the City of Lakeville. The current plan is to construct a new retail facility, including housing the carrier vehicles used for local delivery routes, in the Heritage Commons Shopping Center. This facility will replace the existing post office in downtown Lakeville and will be a larger modern facility to accommodate the growth in the City of Lakeville. No bulk mail facility is planned and representatives of the post office indicated such a facility, if needed, would be constructed in an industrial location. Plans for the post office are very preliminary at the present time and the City of Lakeville staff will be working with the post office representatives in developing a site and facility design consistent with the shopping center plan. It is our understanding the facility will be very similar to the Apple Valley Post Office, and staff will do a video tour of the Apple Valley facility for a presentation at an upcoming EDC meeting. Actual designs are so preliminary it is premature to comment until a more comprehensive facility and site design is completed. Staff will keep the EDC informed on the progress. ROBERT L HOFFMAN LARKIN H O F F M A N DALY aL LINDGREN L T D. ANOREW F. PERRIN GERALD M. FRIEDELL f 7 7 FREDERICK W. NIEBUHR EDWARD J. ORISCOLL RENEE L JACKSON GENE N. FULLER ATTORNEYS A T .LAW wILLUM G. rHORNTON JOHN D. FULLMER - CHRISTOPHER K. LARUS FRANK t. HARVEY OOUGIAS M. RAMLER CHARLES S. MODELL - ANN M. MEYER CHRISTOPHER J. DIETZEN - 1500 WELLS FARGO PLAZA STEPHEN J. KAMINSKI LINDA H. FlSHER THOMAS F. ALEXANDER THOMAS P. sroLTMAN 7900 XERXES AVENUE SOUTH DANIEL T. KADLEc MICHAEL G JACKMAN JorIN E. oIEHL BLOOMINGTON, MINNESOTA 55431,1194 Jo~H~Ki SAHLGREN JON S. 9NIERZEWSKI ADAM S. HUMTA' THOMAS J. FLYNN NICHOLAS A.J. VLIETSTRA JAMES P GUINN TELEPHONE (952) 835-3800 TODD 1. FREEMAN ~ - C. ERIK HAWES JAMES M. SUSAG GERALD L. SECK FAX (952) 896-3333 DANIEL J. BALLINTINE JOHN 8. LUNOOUIST JOHN A MACK DAYLE NOLAN' JEFFREY D. CAHILL JOHN A. COTTER' SEAN O. KELLY PAUL B. PLUNKETT SONVq R. Bi7AUNSCHWEIG AIAN L. KILDOW JOSEPH J. FITTANTE, JR. KATHLEEN M. PICOTTE NEWMAN JONATHAN J. FOGEL MICHAEL B. LEBARON ~ CYNTHIA M. KLAUS GREGORY E. KORSTAD - MARK D. CHRISTOPHERSON GARY A. VAN CLEVE' HEAL J. BLANCHETT TIMOTHY J. KEANE TAMARA O'NEILL MORELANO ALAN M. ANDERSON JAMES A. MCGREEW, III MICHAEL W. SCHLEP THOMAS A. GUMP' RONN 8. KREPS T000 A. TAYLOR TERRENCE E. BISHOP CHRISTOPh7ER J. DEIKE GARY 0. RENNEKE - - MARLA M. ZACK CHRISTOPHER 1. HARRISTHAL DIONNE M. BENSON KENDEL-J. OHLROGGE JEREMY C. STIER BRUCE J. DOUGLAS WILLfAM C. GRIFFITN, JF. OF COUNSEL JOHN R HILL JAMES P. LARKIN' PETER J. COVLE - JACK F. DALY LARRY D. MARTIN D. KENNETH LINDGREN JANE E. BREMER ALLAN E. MULLH3AN JOHN J. STEFFENHAGEN JOSEPH GITIS .......,.,c... G::.ITH ' 'LSC ADMITTED^.: W ISC^NSIN February 1, 2001 Mr. Robert Erickson City Administrator- City ofLakeville 20195 Holyoke Avenue Lakeville, Minnesota 55044-8339 Re: Airlake Development, Inc. - Park dedication fees Our File No.: 26,080-00 Dear Bob: Pursuant to my telephone conversation with you, Airlake Development, Inc. (Airlake) requests that the City accept the amounts recently tendered by Airlake in full satisfaction of its total obligations for park .dedication obligations, i.e., .land trial or dedication obligations to the City in accordance with the rates in effect at the time that the fees were tendered. If acceptable, we would need to negotiate a developer's agreement with the City to confirm our agreement. From our perspective, the benefits that accrue to tiZe City. Those benefits are as follows: a. Airlake waves its right to challenge the park dedication fees at the lower. rate as argued in our letter of January 8, 2001. The amount is fully settled. and there will be no litigation challenging the amount of the park dedication obligations. b. The City will receive the dedication fees now as compared to deferring it for several years. c. Resolving the park dedication obligations will help to stimulate development in the Airlake Industrial Park which will inure to the benefit of the City. LARKIN, HOFFMAN, DALY & LnvDGREN, LTD. Mr. Robert Erickson February 1, 2001 Page 2 We would appreciate it if you would consider recommending our revised proposal to the City. We believe that it is consistent with our discussion with you in December. Sincerely, Christopher J. Die zen, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. cc: -.Pat Regan Roger Knutson, Esq_. ::ODMA\PCDOCS\LIB 1 \648820\ I