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HomeMy WebLinkAbout09-25-01 City of Lakeville Economic Development Commission Regular Meeting. Agenda Tuesday, September 25, 2001,. 6:00 p.m. Lake Marion Conference Room, Community. Development Department City Hall, 20195 Holyoke Avenue 1. Call meeting to order. 2. Approve August 28, 2001- meeting minutes. 3. 2002-2004 Strategic Planning A.) Discuss City Council recommendations and revise plan as desired B.) Review ranking of issues in preparation for Work Plan development C.) Set Work Plan subcommittees, responsibilities, timelines 4. Status Update on 2000-2001 Strategic Plan Items A.) Incentives Subcommittee B.) Labor Force Committee C.) High Tech Subcommittee 5. Manufacturer's Month 2001 -update 6. MN 6th Annual Development Conference, October 25-26, 2001 7. Adjourn. Attachements: Lakeville Home Construction Booming., City Business, Sept. 7, 2001 Pondering a Future Without TIF., St. Paul Legal Ledger, Sept. 4, 2001 Legistlature's Tax Actions Aimed at Business Property-T/F Districts to Suffer., 2001 Minnesota Commerical Real Estate Law Guide, p.8-12. G:\AFlad\Econdev projects\EDC\2001mtgs\90~~ptembe~\092501 agenda.doc 1 ~ Economic Development Commission Meeting Minutes August 28, 2001 .fte~ ~rG. City of Lakeville Economic Development Commission Meeting Minutes August 28, 2001; 6:00 p.m. City Hall Members Present: Vogel, Matasosky, Pogatchnik, Emond, Schubert, Brantly. Members Absent: Tushie, Erickson, Miller, Bornhauser. Others Present: Mayor Johnson and City Council members Luick, Rieb, Mulvihill, Bellows. City Staff: Robert Erickson, City Administrator; Arlyn Grussing, Community & Economic Development Director; Ann Flad, Economic Development Coordinator. 1. Call Meeting to Order. Chair Vogel called the meeting to order at 6:07 p.m. in the Council Chambers of City Hall, 20195 Holyoke Avenue, Lakeville. 3. Joint Work Session With City Council A. The 2002-2004 Strategic Plan for Economic Development Chair Vogel welcomed the EDC and City Council members. Vogel indicated that the EDC has been working on a new Strategic Plan during the last four months. The EDC gathered information on the City Council's priorities and the history of the EDC before creating a vision statement and revising the mission statement. The EDC'S vision is to be: Creative and innovative, Credible, Facilitators of change, Providers of outcomes to achieve lasting impact, Providers for a better community, Promoters rather than policy makers, Builders of relationships between businesses and residents, Successful facilitators of Council initiatives, Anticipatory of difficult City issues, and developers of proactive solutions, Identifiers of issues before they become a problem, and Aggressive innovators. City Council members indicated they suppported the EDC's vision, particularly, the following elements; facilitators of change, promoters rather than policy makers, anticipate issues and solutions, identify issues before they become problems. It was suggested that a comma be added, therefore reading "Anticipatory Of Difficult City Issues, And Developers Of Proactive Solutions." The EDC proposes a new mission as follows, "The Economic Development Commission is committed to innovative economic growth which enhances the quality of life, and provides balance to, the business and residential community." The City Council members indicated support of the proposed mission statement. Discussion ensued regarding balance to the community and whether to rephrase a portion of the mission statement to emphasize "quality of life." 1 G:WFIad\Econdev projects\EDC\2001mtgs\8August\082801 minutes.doc Economic Development Commission Meeting Minutes August 28, 2001 Ms. Flad then explained how the EDC arrived at the four proposed Strategic Work Areas. The four Strategic Work Areas are as follows: Promote Policies Of Quality Strategic Growth • Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. • Encourage the use of development tools, e.g.: PUD's to integrate city design standards with new developments to achieve overall consistencies. • Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville's identification - "Where we are located." • Anticipate emerging/future: city economic development issues and. develop a proactive solution. The Council members spoke favorably about the items listed under this Strategic Work Area, and particularly about anticipating future issues and developing proactive solutions. Foster A Balanced Community • Inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. • Identify solutions for affordable and lifecycle housing. • Work to retain the historical flavor of downtown area, developing it into a vibrant business community & ensuring its long-term viability. • Make use of Southern Gateway opportunities and proximity to both metro areas. • Develop specific marketing for commercial growth. Council member Reib spoke favorably about the EDC's proposal to inform and educate residents. Council member Bellows inquired about the heading of this Strategic Work Area. EDC members explained that each item listed was a component of a balanced community. It was suggested that the term "lifestyle" be changed to "lifecycle" and that the EDC consider rewording the title. Promote Growth Of Industrial And Commercial Development To Encourage Balance Between C/I And Residential Tax Base • Financial planning for community -encourage community partners - schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. • Need to have a proactive budgeting process for EDC. • Affordability of land. • Current lack of retail. The City Council and EDC. members discussed the item "affordability of land," specifically opportunities to market the value-added characteristics of locating in Lakeville. Members also discussed recruiting retail establishments that are not present in neighboring communities, thus attracting consumers to Lakeville. Council members Page 2 of 8 t Economic Development Commission Meeting Minutes August 28, 2001 also agreed that encouraging communication between community partners would be very beneficial to the community. Support Major Transportation Facilities In The City • Assess impact of Interchange priorities for 60-70-50. • Need for major transportation arteries in the city including the need to provide adequate access to commercial/retail/industrial area. • I-35 Corridor enhancements. • Explore issues related to East-West Corridor. • Implementation of Gateway and Corridor Plan -need defined plan for implementation. • Investigate/encourage expansion of airport and rail opportunities and their impact on the C/I community. City Council and EDC members discussed the EDC's role in addressing business- related issues along transportation corridors, rather than infrastructure and design issues, as well as the accessibility of commercial and industrial developments. It was suggested that the first item be revised as follows: "Assess impact of interchange priorities for 60-70-50." It was also suggested that the title of the Strategic Work Area be changed to "Support Major Transportation Facilities in the City." EDC members also clarified that they propose to examine freight rail opportunities and not passenger rail. The City Council indicated their overall support of the proposed 2002-2004 Strategic Plan for Economic Development. The EDC will discuss the recommended changes and begin developing work plans at their meeting in September. The work plans will be incorporated into the Strategic Plan and a final document will be presented to the City Council later this year. The City Council/EDC work session concluded at 7:37. The EDC moved to the Lake Marion Conference Room for the remainder of their regular meeting. 2. Approve June 19, 2001 meeting minutes. Motion 01.20 Comms. Matasosky/Pogatchnik moved to approve the minutes of the June 19, 2001 meeting. Motion carried unanimously. 8. Revolving Loan Fund financing of Marquette Bank's acquisition of the car was/laundromat in downtown Lakeville to be redeveloped as a parking lot. Mr. Erickson informed the EDC that the City has been working to acquire the car wash/Laundromat in downtown Lakeville. The property has been vacant since November, 1999, is blighted, and is not suitable for renovation to Historic Fairfield District of Downtown Lakeville Design Guidelines. Because of the blighted condition of the property and suspected hazardous waste issues with the site, the City of Lakeville has been able to negotiate a tentative purchase price of $125,000 with CIT Small Business Lending Corp. Page 3 of 8 Economic Development Commission Meeting Minutes August 28, 2001 Marquette Bank has need for additional onsite parking and is currently using Babe's parking lot. Marquette Bank is proposing to purchase the property from the City, demolish the building, address any potential hazardous waste issues, and redevelop the site as a parking lot. Marquette Bank is requesting approximately $90,000 in financial assistance from the Lakeville Revolving Loan Fund for the acquisition of the property. The remainder of the project cost would be Marquette Bank's responsibility. The additional parking will assist Marquette in attracting viable businesses to lease space at their downtown location. The Downtown Lakeville Business Association had also previously inquired about the feasibility of turning that property into a parking lot. Should Marquette acquire the property, they would be required to maintain the property as a parking lot and would be prohibited from selling the property. Comm. Pogatchnik questioned whether Marquette Bank is the most suitable recipient of financial assistance. Mr. Erickson indicated that this project requires a private party with significant assets of their own to invest in the project. Mr. Erickson also explained that redeveloping the site for a parking lot would result in a substantial public benefit, as it would address the significant parking issues in the downtown commercial district. Comm. Matasosky concurred, indicating he believed this assistance would help address the significant parking issues on that block. Comm. Matasosky also indicated that the Downtown Lakeville Business Association would be the appropriate party to acquire parking and address all of the parking issues downtown. Mr. Erickson noted that information had been provided to the DLBA on the requirements for setting up a parking district. The DLBA has not indicated the ability to undertake this project, thus Marquette Bank remains the only party interested in undertaking the redevelopment of the property for a parking lot. . The Revolving Loan Fund has a balance of $96,587 and continues to receive payments from New Morning Windows per the MN Department of Trade & Economic Development grant agreement and subsequent loan agreement. Approximately $72,000 expected to be deposited in the Revolving Loan Fund between August 31,2001 and December 31, 2006. Comm. Emond indicated his intention to abstain from voting on this project as he is currently on the board of directors of Marquette Bank. Motion 01.21 Comms. Pogatchnik/Matasosky moved to support the provision of financial assistance to Marquette Bank for the acquisition of the laundromat/car wash site in downtown Lakeville and redevelopment of the site as a parking lot. Emond Abstained. Motion carried. 4. A.) Incentives Subcommittee Mr. Grussing informed the Commissioners that Springsted has completed several components of the Financial Incentives Study. The completed items have been compiled into a draft document entitled "Lakeville Economic Development Commission Financial Tools Program." Revisions have been made to this document based on staff Page 4 of 8 Economic Development Commission Meeting Minutes August 28, 2001 input. The Incentives Subcommittee will meet next week to review the document and make recommendations to the EDC at their September 25, 2001 meeting. B.) Labor Force Ms. Flad reported that the Labor Force Subcommittee met in May and decided to use NationJobs.com as the web site to list job openings. Discussion ensued at the June meeting about the advertising costs the project would incur that are not included in the NationJobs fee. Todd Bornhauser, Executive Director of the Chamber of Commerce, indicated he would explore the cost and availability of billboards outside of Lakeville. The committee also commissioned a company to design a logo for the project. Ms. Flad also developed a brochure to use in recruiting companies to participate in the project. Economic changes have reduced the number of Airlake businesses hiring new employees, and some businesses report layoffs. Therefore the committee will be meeting in early September to discuss whether it is feasible to solicit at least ten. businesses join the JobslnLakeville.com program, and whether those businesses. would advertise enough job openings to make the project successful. Commissioners indicated that EDC's original intention was to encourage leadership amongst Airlake Businesses and have that leadership undertake the JobslnLakeville.com project-and others. Commissioners recognized the renewed activity of the HR Committee through this labor force project, and suggested that the role of the EDC and City staff is complete. The EDC and Citystaff will continue to support the effort but will take a less active role in the project implementation. C.) High Tech Ms. Flad reported that the High Tech Subcommittee met on August 8, 2001. The joint subcommittee reviewed the High Tech Survey results. The Subcommittee originally distributed approximately 157 surveys to businesses located in Airlake Industrial Park, Fairfield Business Campus, and the McStop area. The survey was accompanied by a cover letter explaining the project, .and was signed by the chairs of the Telecommunications Commission and the Economic Development Commission. These surveys were sent to the primary contact for each company as represented in the City of Lakeville's database. Two methods of distribution were used: delivery via the U.S. Postal Service to approximately half of the companies, and delivery via a-mail to the remainder of the companies. The original response rate to the survey was low, with 14 companies (9%) responding to the survey. Interestingly, the High Tech Subcommittee had used technology in the form of a-mail to distribute nearly half of the surveys, however this method of distribution received the lowest response rate (2 companies, or 1 A second copy of the survey was sent to the same contacts at the same companies, however they were all sent via the U.S. Postal Service and were accompanied by a letter from Mayor Bob Johnson requesting participation. The second distribution of the survey brought the response rate up to 27% (a total of 42 respondents.) Page 5 of 8 Economic Development Commission Meeting Minutes August 28, 2001 Statistics were generated and a preliminary review by Dakota County Technical College Telecommunications Commission member and Telecommunications Instructor Doug Thompson revealed that additional responses would be needed in order to maximize the usefulness of this survey exercise. Mr. Thompson and staff completed additional 10 surveys via phone calls to companies chosen for their size or likelihood to have telecommunications infrastructure. These answers are incorporated into the final statistics listed below. A list of all companies that participated in the survey is attached for your information. The committee concluded that "most companies do not need fiber at this time but it would be helpful for the future." Specifically the committee felt further exploration of fiber would allow existing businesses to take advantage of technological advances and would encourage new businesses to locate in Lakeville. Staff will arrange to have the following service providers present information to the subcommittee: MCI WortdCom, Integra, Frontier, Charter, McCleod, Qwest, Hickory Tech, and AT&T. Providers will be asked to share information on their vision and plans for providing service in Lakeville, as well as information on the demographics that could trigger a market presence in the community. Staff will also develop a presentation to share with the service providers which explains the subcommittee's objectives and information on the market Lakeville currently has and anticipates in the future. The subcommittee also felt that educating the business and residential community about telecommunications options could be a second phase of their efforts. Responses to the surveys indicated that a number of businesses are paying for duplicative service without the need to do so. Many of these businesses also indicated they are not particularly knowledgeable about telecommunications and their options. Thus assisting businesses (and residents) in understanding what their needs and options are would provide a great benefit to the community. Once the subcommittee meets with the service providers, the subcommittee will draft a statement to share with the businesses who responded to the survey and other interested parties. Additional methods of information distribution and education will also be explored. 5. Identify Process for developing Strategic Work Plans Chair Vogel indicated that he would work with City staff to incorporate the City Council's suggestions from the meeting into a document for the EDC's discussion at their September meeting. It was also determined that Commissioners would fax information to City staff regarding the issues to address first. Subcommittees will then be formed to begin drafting workplans for those issues. It is anticipated that the work plans will be complete by October. 6. Metro East and Dakota County Economic Development Partnership membership update. Mr. Grussing informed the EDC that the City Council passed a resolution at its August 6, 2001 meeting to terminate the City's membership with Metro East effective 12-31-01. The Council has chosen to maintain the City's membership with the Dakota County Page 6 of 8 Economic Development Commission Meeting Minutes August 28, 2001 Economic Development Partnership, as its focus is more local. Commissioners concurred with the City Council's decision to terminate the membership with Metro East and indicated that further benefit should be sought from the Dakota County Economic Development Partnership. 7. Manufacturer's Week Tentative Activities Ms. Flad indicated that staff has met with Todd Bornhauser of the Chamber of Commerce regarding this year's activities. Those activities proposed for 2001 include the following: Luncheon: The Chamber of Commerce has indicated they will hold a "Recognition Luncheon" for manufacturers. The City has been asked to participate. Location and details are being determined. Staff suggested identifying a speaker that is relevant to manufacturers. Last year, manufacturers were invited to the Legislative Forum and Manufacturer's Recognition Luncheon, with nine manufacturers attending. In the past, the City has held luncheons or dinners. A 1997 survey of businesses indicated they would prefer a dinner and speaker, however Manufacturer's Week in 2001 falls on the same week as the Chamber's Fall Fundraiser, and two dinners in one week are not feasible. Proclamation and Governor's Certificate: The Mayor will be asked to proclaim the week. as Manufacturing Week. All manufacturing (industrial) businesses will receive a copy of the proclamation along with a Certificate of Appreciation from the Governor. These will be mailed to businesses to ensure their timely distribution. The Proclamation will also be published on the Messages page of the This Week-Life & Times newspaper. Informational Articles: The Lakeville This Week-Life & Times newspaper will be approached about doing an edition that focuses on manufacturing businesses. If the newspaper doesn't respond to this request, staff will draft articles that highlight the benefits of industrial businesses to our community. This is consistent with the 2002-2004 Strategic Plan for Economic Development. Commissioners indicated that a luncheon may be more successful if the speaker is more relevant to manufacturers. Commissioners also indicated support for the proposed activities, and were supportive of developing communication with the public on the benefits of manufacturing businesses in Lakeville. 9. Timbercrest Mr. Grussing provided an update on the Timbercrest project. The Comprehensive Plan Amendment was complete with receipt of a July 30, 2001 letter to Robert Erickson from Ted Mondale of the Metropolitan Council. An Environmental Assessment Worksheet was completed, and the City Council did not require an Environmental Impact Page 7 of 8 Economic Development Commission Meeting Minutes August 28, 2001 Statement at their meeting of July 30, 2001. The Environmental Affairs Committee also recommended approval of the development plan on August 21, 2001. A Public Hearing was held with the Planning Commission on August 23, 2001. The request included rezoning of the property and approval of a preliminary and final plat for the first phase, which includes the Super Target. The Planning Commission unanimously recommended approval of the rezoning to PUD and the preliminary and final plats. Timbercrest plans will also be reviewed by the Park and Recreation Committee at their September 5, 2001 meeting. The project will be scheduled for first available City Council Meeting following the preparation of a development contract. Grading of the site is anticipated to commence in the fall. 5. Adjourn. The meeting was adjourned at 8:49 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R.T. Brantly, Secretary Page 8 of 8 7., T MEMORA~lDUM TO: Economic Development Commissioners CC: Robert Erickson,-City Administrator FR: Ann Flad, Economic Development Coordinat° DATE:September 19, 2001 RE: Strategic Planning; City Council Suggestions, Issues Ranking: & Work Plans. At the August 28, 2001 EDC meeting, the City Council provided: feedback to the (~:nmmiccinnPrc nn the Vicinn Miccinn anri (~ritinal Isci ias the 2f1f12_2f1(ld Strategic Work Plan proposes to incorporate. A summary of the City CounciCs feedback is indicated in italics below, with specific recommendations noted in red. The. Commissioners .were also.. asked to prioritize the .Strategic. Pian's Critical Issues based on the Vision, Mission, and City Council.. input, Each of the top... priorities will form the.. basis of Work Plans which will guide the actions of the EDC in the upcoming year. The priority each Cricitcal Issue received is indicated below. The issues have also been placed in numerical order of priority (see attached..) The EDC will determine which Work Plans. should be developed by,the Commission as a whole, and which Work Plans should be developed by subcommittees. Subcommittees will be determined and plans outlined for the creation of Work Plans. _ Promote-P-olicies-Of Quah#~frategtc~rowth 3 Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term.. 6 Encourage the use of development tools, e.g.: PUD's to integrate city design standards with new developments to achieve overall consistencies. 13 Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville's identification - "Where we are located." 8 Anticipate emerging/future city economic development issues and develop a proactive solution. The Council members spoke favorably about the items listed. under this S#r~tegic Work Area, and particularly about anticipating future issues and developing proactive solutions. Foster A Balanced Community 1 Inform and educate residents on benefits of Cil base to gain community support and appreciation for business growth. 3 Identify solutions for affordable and lifecycle housing. 10 Work to retain the historical flavor of downtown area, developing it into a vibrant business-community & ensuring its long-term .viability.. 12 Make use of Southefn Gateway opportunities and proximity to both metro areas. 9 Develop specific marketing for commercial growth. Council member Reib spoke favorably about the EDC's proposal to inform and educate. residents. Council member Bellows inquired about the heading of this Strategic Work Area. EDC members explained that each item listed was a 1' '1. L'_/..-..iJ •1.. Is 1.J tf__t 1G'_4.y <:[,H.t t. _[._ff. . C~ri?puitei?t of a uararrcCU ~u~iniriinity. tt was suggesteu that tnt; tt:r~rr -~rresty?e be changed to "lifecycle" and'that the EDC consider rewording the title: Promote Growth Of Industrial And Commercial Development To Encourage Balance Between C/I And Residential Tax Base 2 Financial planning for community -encourage community partners - schools, 'city, county, state, etc. to provide input to create' basic financial models that can be used to visualize and measure potential threats; outcomes, and overall impacts of our efforts to improve financial position- of city in future. 9 Need to have a proactive budgeting process for EDC. 11 Affordability`of land. 9 Current lack of retail. The City Council and EDC members discussed the item "affordability of land, " specifically opportunities to market the value-added characteristics of locating in Lakeville. Members also dlscussed'recr~iting retail eslab/isfimen~s t~a~re not present in neighboring communities, thus attracting consumers to Lakeville: Council members also agreed that encouraging communication between community partners would be very beneficial to the community. Support Major Transportation Facilities In The City 4 Assess impact of Interchange priorities for 60-70-50. 5 Need for major transportation arteries in the;city including he need to provide adequate access to commercial/retail/indus€rial area. 15 I-35 Corridor enhancements.. 16 Explore issues related to Eest~~llest Corridor. 14 Implementation of Gateway. and Corridor Plan -.need defined plan for implementation. 12 Investigate/encourage expansion of airportand rail opportunities and their impact on the C/I community. > ~ City Council and EDC members discussed the EDC's role in addressing business-related issues along transportation corridors, rather than infrastructure and design issues, as well as the accessibility of commercial and industrial developments. It was suggested that the first item be revised as follows: "Assess impact of interchange' priorities for 60-70-50." It was also suggested that the title of the Strategic Work Area be changed to "Support Major Transportation Facilities in the City." EDC members also-clarified that they propose to examine freight rail opportunites and not passenger rail. _ - 1. .Inform and educate residents on-benefits of C/I base to gain community support and appreciation for business growth. 2. Financial planning for community.- encourage community partners -schools, city, county, state, etc. to provide input to create basic 1•inancial models thaf can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. 3. Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. 3. Identify solutions for affordable and lfecycle housing. 4. Assess impact of interchange priorities for 60-70-50 5. Need for major transportation arteries in the ctyincluding the need to :provide adequate access to comrnerciaUretail/industrial areas 6. Encourage the use of development tools, eg.: PUD's to integrate city design standards with new developments to achieve cverall consistencies. 7. Develop specific marketing for commercial growth. 8. Anticipate emerging/future city economic development issues and develop a proactive solution 9. Need to have a proactive budgeting process for EDC 9. Current lack of retail 10. Work to retain the historical flavor of downtown area, developing it into a vibrant business community & ensuring its long-term viability. 11. Affordability of land`_ 12. Investigate/encourage expansion of airport and rail opportunities and their impact on the C/I community 12. Make use of Southern Gateway opportunities and proximity to both metro areas. 13. Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville's identification - "Where we are located." 14. Implementation of Gateway and Corridor Plan -need defined plan for implementation 15. I-35 Corridor enhancements 16. Explore issues related to East-West Corridor MEMORANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator Dennis Feller, Finance Director FR: Ann Flad, Economic Development Coordinator' DATE:September 18, 2001 RE: 2000-2001 Strategic Plan Issue: Incentives Subcommittee Thelncentives Subcommittee met on Tuesday, September 18, 2001 to review the final draft of Springsted's Incentive Tools document. A summary of the meeting is attached for your reference. The subcommittee discussed exploring the following incentives in more detail: • Tax Abatement • Industrial Development Revenue Bonds • DTED's MN Investment Fund and Redevelopment Fund Additionally, Springsted indicated that an HRA Special Levy and an EDA Special Levy could potentially. be used to generate funds to address economic development projects in the City. Burnsville is currently-considering an EDA levy that would generate a maximum of $568,000 for 2002. Implementation of all or a portion of this levy will be considered by Burnsville when the final budget decisions are made. Springsted will be presenting additional information on tax abatement, IDRB's DTED's MIF, MN Redevelopment Funds, and Special Levies at the October 23, 2001 EDC meeting. The EDC may also wish to encourage each Strategic Work Plan subcommittee to incorporate the review of the pertinent portions of the incentive study into the Work Plans for 2002-2004. Incentives Subcommittee September 18, 2001 Meeting Summary A meeting of the Incentives Subcommittee was held on September 18, 2001 at 11:30 a.m. at the Chart House. Present were subcommittee members Barry Pogatchnik, Jim Emond and Bob Brantly. Also present were Paul Stienmann and Mikaela Huot of Springsted, Bob Erickson, City Administrator, Dennis Feller, Finance Director, and Ann Flad, Economic Development Coordinator. Mr. Erickson began by thanking Springsted for the work done to create the Incentive Tools document. The matrix of incentive tools that can be used for various types of projects makes the document a very usable and valuable tool Mr. Stienmann highlighted several components of the Incentive Tools document prepared by Springsted. The implications of the legislative changes to TIF were discussed. The legislative changes to the tax classifications will effectively result in less increment being generated in a district than projected when districts were established and bonds were sold. This may create deficits in some districts. The state has allocated funds to assist communities. in dealing with these deficits, however cities can only access these funds if their entire TIF program (all districts pooled together) are running a deficit. While TIF will still be available for communities to use on individual projects, the difficulties created by the new legislation will discourage cities from taking the risk of using it in the future. Springsted will be preparing more detailed information on the new TIF environment for presentation to the Economic Development Commission and City Council in the future. Mr. Stienmann also discussed tax abatement, indicating that it is a highly flexible tool that can be used by cities for public purposes. The flexibility and relative ease of using tax abatement makes it an attractive tool to examine further. Additionally, cities can seed a fund for projects by .implementing a tax abatement program and collecting funds several years prior to beginning. a project. The subcommittee discussed the desire learn more from Springsted about tax abatement. - The federal government has also increased funding for Industrial Development Bonds. Springsted suggests .that a workshop may be held to educate EDC members in the details of using these funds. The Minnesota Investment Fund and the Redevelopment Fund operated by the Department of Trade & Economic Development are other programs Mr. Stienmann suggested exploring further. These programs have been in existence for some time. Learning more about the qualifications and application process for these funds may assist the EDC in using them to recruit businesses or redevelop areas. Special Service Districts such as the one in downtown Lakeville could also be considered for other areas of the community. Another tool for-the EDC to consider exploring further is special levies. A Housing & Redevelopment Authority (HRA) levy and an Economic Development Authority (EDA) levy could be considered to create working capital for implementation of the EDC's Strategic Plan. Springsted will prepare an additional memo with more information on these levies. Springsted will prepare additional information, tax abatement, Industrial Development Revenue Bonds, DTED's Minnesota Investment Fund and the Redevelopment Fund, and HRA &EDC Special Levies, to be presented at the October EDC meeting. MEMORANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator FR: Ann Flad, Economic Development Coordinatc~~`~~==- DATE:September 18, 2001 RE: Manufacturing & Technology Month Governor Jesse Ventura has declared October 22-November 23 as 2001 Minnsota ~1~~nti{!fin+iirinn Q- T~nhn~l~rrii .v~ ..~L. AL Lk.. N. _i n[T nnl~~ rnn ~.~u~ ~uiu~~ui n ~y u i cta n ivtvyy I I Ivt nt I. rtt a IG i`1llgl.IJl LO, LVV I CUI~ f f ICdUn(~. , Ifle Commissioners discussed undertaking three activities for Manufacturing & Technology Month: public education (per the 2002_ -2004 Strategic Plan), mailing proclamations and certificates, and holding a recognition luncheon. Commissioners indicated that a luncheon may be successful if the guest speaker's topic is relevant to manufacturing businesses. Staff, along with Todd Bornhauser of the Chamber, have been exploring potential speakers. A list of DTED's suggested speakers is attached for your reference. Suggestions for speakers are being solicited from the following organizations: Minnesota Chamber of Commerce Minnesota Waste Wise Dakota Electric UtiliCorp United American Society for Quality - MN Minnesota Council for Quality Minnesota High Tech Association Minnesota Technology Make It In Manufacturing Technology DHY U.S. Small Business Administration Staff met with John Sukansky of Lakeville This Week Life & Times newspaper andTodd Bornhauser of the Chamber to encourage the newspaper's participation in promoting manufacturing businesses. A copy of the Mayor's Proclamation will be included on the Messages page of Lakeville This Week Life & Times as it has been in previous years. Mr. Sucansky indicated he would explore doing a special assignment on manufacturing, along with several other options. Staff will be meeting with Mr. Sucansky during the week of September 24-28 to further discuss options. Staff has also been researching statistics and other information which can be incorporated into articles for Airlake News, Lakeville This Week Life & Times, and the Sun Current. L'.i 1... ?'T, MEMORANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator FR: Ann Flad, Economic Development Coordinat~i'~ DATE:September 18, 2001 RE: 6th Annual MN Development Conference Attached is information in the 6th Annual Minnesota Development Conference, to ha halri C~rtnher ~ti-~R 7(101'! in ~t I ni tic Park Tho ~nnfnronrQ is snnncnror) h,. the Department of Trade & Economic Development, the Economic Development Association of Minnesota, and the Minnesota Bankers Association. Attendees will be able to attend sessions on Technology, Affordable Housing, Financing Business Development, and Workforce Development. Commissioners who are interested in attending sh~iuid notify Ann Fiad by October 1, 2001 so registration forms and fees can be processed. Manufacturing ~ Technology Month Potential Speakers Minnesota Chamber of Commerce David Olson, president 651/292-4655 Bill Blazer, senior vice president, Government Affairs and Policy Development 651/292-4658 Kevin Stirtz, director, Minnesota Waste Wise 651/292-4681 Other policy experts are also available to speak on issues such as taxes, transportation, health care, labor management, etc. Minnesota Technology Todd Bille, Rochester Regional Office Peter Berglund, Metro Regional Office To schedule either of these Minnesota Technology, Inc. representatives., please call at 800/325-3073 Make It in Manufacturing Technology Lynne Osterman 763/535-4905 Minnesota Department of Trade & Economic Development (DYED) Industry Specialists in DYED Regional Business Development Marketing Representatives Rebecca Yanisch Patricia Neuman Patricia Neuman Commissioner Medical Devices East Metro Region Elaine Bliss Diane Knutson Diane Knutson Trade Office Software Data Processing West Metro Region Mary Kruger Dentley Haugesaug Dentley Haugesaug Small Business Development Center Industrial Machinery Southeast Region Charles Schaffer Steve Sussman Steve Sussman Small Business Assistance Printing & Publishing Central Region Roger Hughes Helen Friedlieb Helen Friedlieb Rick Caligiuri Business Services West Central Region Job Skills Partnership Gene Goddard Paul D. Mce Electrical Gene Goddard Workforce Development Electronic Components Southwest Region Paul A. Mce Bio-Technology Mark Loffhus Business Finance South Central Region Mark Lofthus Jim Wrobleski Marketing & Business Development Northeast Region Karl Howe Northwest Region To schedule any of the DYED employees, please call Judy Parker at 651/296-5022 or 800/657-3858 MEMQF~;~?NU TO: Economic Development Commissioners CC: Robert Erickson, City Administrator Jeff Leaders, Cable Coordinator FR: Ann Flad, Eaarx~mic Development Coordina#or~''R, DATE:September 't8, ~~t01 RE: Strategic Rian Item: High. Tech Subcommittee. At their August subt~mmittee meeting, the. High Tech Subcommittee concluded that further exploration of fiber would allow existing businesses to take advantage of technological advances and mould encourage new. businesses to locate in Lakeville. Staff is arranging: a meeting with several service providers: Citiz®ns/Frontier- interested Charter -interested Qwest- interested.. Operates as a carrier for AT&T, MCl and wireless companies. AT&T --interested MCI WorldCom -pending Integra -pending NicCleod -pending Hickory Tech -pending Everest -pending Seven Innova#ions -pending WOW - not. in#erested ..The. providers that have expressed interest in :meeting with. the High Tech Subcommittee thus far have expressed particular interest in working with the City on the development of a High Tech Business Park. .Providers are being asked to share information on their vision and plans for providing service in Lakeville and to provide information on the demographics that could trigger a market presence in the community.... A power point presentation is being finalized which Highlights the asserts of having a business presence: in Lak®vilie, the community's growth potential, artf results from the High Tech Survey. conducted earner this year. The subcommittee also felt that educafrng the business and residential community about tefeeommuncations options could be a second phase of their efforts. Responses to the surveys. indicated that a number of businesses are paying for duplicative service without the need to do so. _An article: is being developed for the Fall edition of Airlake Park News that will help businesses ascertain. the types of telecommunications services that most effectively mee# their needs. T r 1 Lei ~ V. v MEMORANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator f„-:~ FR: Ann Flad, Economic Development Coordinator ' ~ DATE:September 18, 2001 RE: Strategic Plan Item: Labor Force Subcommittee At the August 28, 2001 EDC meeting, Commissioners indicated that the intention of tha ~nr. hac haan to "fnctar la~rlerehin ~mnnn Dirl~lro hi icinoccoc in nrv-Ier +n address labor force issues." In January and February of 2001, Airlake businesses met to discuss labor force issues and chose to implement labor force recruitment strategies. through the HR Committee of the Lakeville Area Chamber of Commerce. Commissioners recognized the renewed activity of the HR Committee through this labor force project, and suggested that the goal of the EDC is complete. Staff met with Todd Bornhauser of the Chamber and Gary Tholkes, Chair of the HR Committee, to facilitate this transition. Staff provided the Chamber with a template for the subscription brochure and has processed a $1,000 grant from UtiliCorp United that will be used for implementation of this project. The EDC and staff will continue to support the effort but will take a less active role in the project implementation. Mr. Bornhauser of the Lakeville Area Chamber of Commerce will be present at the EDC rneeting to discuss the HR Committee's plans for determining the feasibility of implementing the JobslnLakeville program during 2001. Q&,,t t, L. O p M~ ~A 6r~ ~A,~l ~inrteeota ~ r n Invitation To You From The Partners Qk~~R~~` On behalf of the Minnesota Department of Trade and Association of Minnesota. It is our hope that you will join us Economic Development, I would like to extend an for a very insightful and forward thinking session. invitation for you to join me at the 6th Annual Minnesota Development Conference. I am especially pleased to welcome the Minnesota Bankers Association as a new co-sponsor and partner in the development of this conference. ~ ' Mary Ellen Domeier The foundation upon which .Minnesota has grown is built on .President stability and diversity, but it cannot remain strong .without Minnesota Bankers Association continual change, adaptation, and innovation. The foundation supporting this prosperity is you, the local economic developers, bankers, and development organizations and enterprises who must keep up with the latest technology, ideas, and information. artnerships; they are indeed the essence of economic Minnesota's goal is to be a global competitor, and with your ~ development. From the expanding company to the lender presence and participation at the Development Conference, I to the local planning and development official, each plays a know we will succeed. critical. role in the other's success. Success-measured in terms of business growth, financial returns, job creation or community quality of life-is the force that fuels innovation ~~a~co- and the formation and reformation of economic development , partnerships. Rebecca Yanisch Commissioner The Economic Development Association of Minnesota Department of Trade and Economic Development (EDAM) is proud to join the Department of Trade and Economic Development and the Minnesota Bankers Association in sponsoring the 6th Annual Minnesota Development Conference: Minnesota: Partnering for a Stronger Future. r t is my pleasure to invite you to participate in the 6th Annual Minnesota is in a tremendous position to build upon its 1 Minnesota Economic Development Conference taking strengths in business technology innovation, workforce place on October 25th .and 26th at the Doubletree Park Place productivity and quality of life. EDAM looks forward to Hotel in St. Louis Park. exploring opportunities, and renewing and- cultivating new partnerships for a more vibrant and successful Minnesota. With the conference focusing on workforce development, tech- nology, finance and affordable housing, participants will also We look forward to seeing you at the conference! learn how the right partnerships led to Minnesota becoming a competitive force in the global mazketplace. Attendees will also gain helpful tools for use in their own communities. /G~~~ ~W~. The conference is a joint effort between the Minnesota David M. Anderson Bankers Association, Minnesota Department of Trade and President Economic Development and the. Economic Development Economic Development Association of Minnesota //~J ~ GE/l -/oM1Y6~ ~rst rt e~vifcs October 25th, 2001 Q~R«`~G4 ~~z Registration E Continental Breakfast Finance KeynoteAddr~ess 7:00 - 9:00 a.m. 9:30 a.m. -10.30 am. Exhibits 7:00 a.m. - 4:00 p.m. "The Globalization of Success" The need to succeed in the twenty-first century mandates a global approach to business. Both national and Opening Session international trade, communication, and partnerships are essential for the maintenance of a thriving business and 9:00 a.171. - 9:30 a.Irl. economy. The work of the Export-Import Bank of the "Minnesota: Partnering For A Stronger Future" United States provides lenders with pre-export working capital guarantees, as a means of enabling small U.S. The focus of this years Minnesota Development Conference is the creation of business and development businesses to competitively engage in the global industry partnerships as a means to achieving success. In this of exporting and importing. regard, the state of Minnesota may be seen as a puzzle, composed of various partnerships that work together to Ursula Wegrzynowicz create the final product: a competitive state whose Business Deuelopment Officer presence is a strong force in the global market. Meet the Export-Import Bank of the United States Commissioner and Presidents who have worked together Concurrent Finance Worksho s in partnership to organize and present this year's P conference. Learn about their vision for the future of 10:45 a.m. - 11:45 a.m. Minnesota and the partnerships that they believe will ensure state stabilization, growth, and the achievement of "ClnigUe Developments From the Corners of their objectives for Minnesota. Minnesota" Minnesota is the unified collection of diverse regions Rebecca Yanisch throughout the state. The differences between these areas Commissioner cannot be ignored as they enhance the economy and qual- Department of Trade and Economic Deuelopment ity of life for Minnesotans. Representatives from various Minnesota regions will describe economic Pat Hart development projects unique to the needs and demands of Vice President, Minnesota Bankers Association their area. Specifically, they will address the financial President, Paragon Bank, Wells constraints, the challenges faced, and the use of specific financial toots used to successfully complete these projects. David M. Anderson President John Swift Economic Deuelopment Association of Minnesota Commissioner Iron Range Resources and Rehabilitation Board, Eueleth Terry Erickson Finance Director of Economic Deuelopment Utilicorp United, Rosemount The road upon which both public and private economic developers travel is one of twists and turns, and the use of John Schmidt limited financial resources is an inevitable challenge that Executive Vice President, CEO must be faced. This mandates a sound understanding of the Security State Bank, Sebeka multitude of financial tools available and their most appropriate use to accomplish your development objectives. Steve Dusek CEO Prairieland Development Corporation, Slayton s ` Q~~~,~o~Me~ ~ k ~innedota October 25th 2001 ~QhRg~~~G~ "Using public money. to develop private land" "New and Emerging Businesses' Perceptions The need for affordable housing throughout Minnesota can Of Capital Availability" no longer be denied as the economy continues to expand A successful economy cannot continue to thrive without a and jobs flourish while the growth of housing fails to keep natural cycle of rebirth,. bringing in new businesses. Learn pace. Challenging the fulfillment of this need, however, is about the birth of several new business start-ups and. the the debate over how such housing initiatives .should be tools used in the pursuit of these entrepreneurship funded. Learn how private affordable housing objectives. Examine the national data on the financing of development projects are being built using a variety of business start-ups and place this data in the context of the financial packages, including the use of public money. Minnesota economy. Also, examine the findings of the Department of Trade and Economic Development's Bruce Olness survey which sought to determine what factors are integral Chairman for the creation of a foundation upon which new Cornerstone State Bank, LeSueur businesses may grow and succeed. "Here Today, Gone Tomorrow?: The Changesn charter Schaffer Tax .Increment .Financing and its Alternatives" Director, small Business Assistance office The 2001 legislative session .brought about seismic Department of Trade .and Economic Deuelopment changes in local development financing. Examine how Tax Increment Financing is changing. programmatically Bob Isaacson and politically. Look at what such changes entail for the Director, Office of Analysis and Evaluation economic developer and how the. traditional mode of Department of Trade and Economic Deuelopment development will be altered. In addition, learn about new .alternatives being. offered in place of TIF and their Terry Driscoll significance for the future of economic development. Custom Iron Sid Inman Bill Scarince Financial Advisor, Senior Vice President W.F. Scarince, [nc. Ehlers and Associates Mark Holland Paul Steinman Senior Vice President Vice President ~ Richfield Bank and Trust Springsted, Inc. Luncheon 12:00 p.m. - 1:00 p.m. Steven Bubul Attorney at Law Kennedy Z; Graven Mary ippel Attorney at Law Briggs ~ Morgan ~.,~6.40P~e ~ ti~ 6!~ ~nnaa! ~inne~ota October 25th, 2001. ~o~R~R~NGd R through solutions that do not necessitate a dependency on the market for home ownership. Keynote Address 1:00 p.?n. - 2:00 p.m. Glenn Dorfman Chief Operating Officer ss Roots Leadership: Beyond Command Minnesota Realtors Association ~ontrol" Concurrent Affordable Housing Workshops how former Captain Michael Abrashoff turned the 3:15 p.m. - 4:15 p.m. 3enfold around, leading his crew to success and gal satisfaction. Abrashoff's inspirational message is ability to formulate individual partnerships between "The Revitalization Of The CIrban Housing If and each of his sailors, thereby breaking down the Landscape" between those at the top and bottom while Learn about a St. Paul system of revolving accounts ng respect, admiration, and control. known as the l`leighborhood Lending Program which provides affordable housing loans that serve to refurbish old homes for rent or resale. The implementation of this _ S program has successfully turned disintegrating, urban neighborhoods into revitalized, livable communities. In Michael Abrashoff addition, learn about the initiatives of several urban banks Former Captain to provide loans and the financial resources required to U.S.S. Benfold meet the affordable housing needs of our cities. David Reiling President Clniuersity Bank Affordable Housing Jan Nelson the years, Minnesota has accomplished great Mortgage Loan Officer ass in a number of areas, creating an excellent qual- Cherokee State Bank ife for residents that has been nationally recognized. Rick Sosa number of working Minnesotans has increased, the Community Banker ge of housing throughout the state has strangled the Cherokee State Bank ng its of workers to obtain affordable residence in an singly tight and restricted market. From this David Wiese age arises the question of how can we provide Assistant Vice President and Minnesota Community ant housing for those who lack this necessity, and Deuelo ment Re resentative responsibility is it? p P Wells Fargo dabi'e Housing Keynote Address Ruben E. Rodriguez ~.m. - 3:00 p.m. Community Development Officer Marquette Bank s Everyone Have To Be A Homeowner?" gh popular belief leads to the notion that everyone eventually own their own home, Glenn Dorfman of nnesota Realtors Association addresses the opinion sere are two markets in the housing arena, one in lifetime rental is plausible and indeed acceptable. how private and public partnerships can s ~rve to e affordable housing opportunities in a tight market 4 ` 46~~t.onMt ~ ti 6r,L ~irtne~ota October 25th., 2001 ~ ~kR~R~~G~ o: "The House That Partnerships Built" Hal Clapp The problem of available affordable housing is one that Program O~~cer plagues both Minnesota's metro cities as well as Greater Greater Minnesota Housing Fund Minnesota. Look at numerous successful case studies throughout rural Minnesota of partnerships that have Todd Rhoades provided housing for the employees that create the Vice President backbone of the rural economy. Cermak Rhoades Architects Anne sand Reception and Door Prize Drawing Housing Specialist 4:30 p.m. - 6:30 p.m. Headwaters Regional Deuelopment Commission, Bemidji Arlan Kangas President Midwest Minnesota Community Deuelopment Special COnfereRCe /nUltatlOR Corporation, Detroit Lakes Minnesota's Tekne Awards Al Tuntland Thursday, October 25, 2001 Interim Executive Director Hosted by: Minnesota Technology and Minnesota High First Homes Program, Rochester Tech Association Awards Ceremony:. 7:15 p.m. Danny Dunlap Location: Historic Orpheum Theatre, Family Services Director 910 Hennepin Avenue South, Minneapolis Otter Taif Wadena Community Action Council, New. York Mills Please contact Karen Jeal, Minnesota Technology, at 612/373-2957 for details regarding a special offer to Ron Solheid attend the Minnesota Tekne Awards which highlights the Program Director best technology leadership our state has to offer. Minnesota Department of Corrections, St. Paul "Building Better Neighborhoods" At the neighborhood level, where .does one even begin to address the problem of the housing shortage? Building Better Neighborhoods, published by the Greater Minnesota Housing Fund, is an effort to teach. people about the best housing options for their individual neighborhoods. Learn about the use of smaller tots, narrow streets, compact neighborhoods, and modest-sized homes as integral pieces to the construction of homes and neighborhoods that are both affordable and an asset to the community. Warren Hanson President Greater Minnesota Housing Fund ~ s Q~Jg4aRMe' ~ '4 6t1~ ~wwra~ ~innesota October 26th 2001 ~ ~M~*~~~~ Registration E Continental Breakfast "Evolution: Minnesota's Demographic Diversity" 7:00 a.m. - 9:00 a.m. At the turn of the twenty-first century, census results revealed an unprecedented change in the demography of Exhibits 7:00 a.m. - 3:45 p.m. Minnesota, transforming the state's workforce and the direction in which it is headed. Learn about the diversity of ethnicity, culture, language, and age that has served to 1~ enrich the workforce by examining case studies that WOrk fOl'C6 D6U61Opment exemplify the way in which industries have adapted to these changes, utilizing this transformation to attain their An understanding of the changes developing within the service objectives. workforce is a critical component of future state econom- Tom Gillaspy is advancement, as is a clear understanding of the poten- Minnesota State Demographer tial solutions to the challenges posed. Minnesota Planning Workforce Deuelopment Keynote Address ryancy Tuomie 9:00 a.m. - 10:00 a.m. Vice President, Human Resources "Workforce in the Twenty-First Century" Cherokee State Banks Learn about the path upon which workforce development Robert. Klas, Jr. has embarked and the future in which it is headed. President Discover the essential components that diversity Tapemark plays in every business and the need to recruit and market to these diverse populations. Tap the diverse Linda O. Denson resources Minnesota provides. Team Coordinator Gerry Fernandez Ault, /nc. President Multicultural Food Service and Hospitality Alliance "Learning From Our Neighbors" Although we like to think that Minnesota is home. to the Concurrent Workforce.Deuelopment Workshops most innovative, creative, and successful workforce 10:15 a.m. - 11:15 a.m. development programs, we cannot ignore. the successful developments that are emerging from the surrounding "The Bridge Over Troubled Waters" states. Learn about the implementation of various Examine the skills gap that challenges Minnesota's innovative programs by our neighboring states and think about their possible application in Minnesota. employers, and learn about educational reform efforts initiated by partnerships that strive to bridge this gap. In Wendy Seronko addition, learn about the state's innovative assessment of Executive Director underemployment, and the methods used to obtain such Employers Deuelopment Workforce Network, Wisconsin information. Pat Wilbur David Oman Corporate Academic Dean Chairman, Governor's Strategic Planning Council Northwest Technical College Iowa 2010 -The New Face of Iowa Chad Coquette Luncheon 11:30 a.m. - 12:15 p.m. Director of Custom Training and Continuing Education Northland Community and Technical College Dennis Buckley Manufacturing Manager Arctic Cat, /nc. + 6l~ ~anua~ / ~inn¢~oEa October 26th. 2001 ~ ~°~~~R~~~` _~F. Break E Exhibits 12:15 p.m. -12:45 p.m. Dr. David Pui Director, Particle Technology Laboratory University of Minnesota T6CtitiOlOg1J. Rob Juncker Chief Technology OfFcer In the twenty-first century, it is technology that differentiates Gearworks the mere presence from the competitive force. "Li htin CI Minnesota" Advancement in technology has become a measure of g g P one's power in the global market and an integral variable in As technology has become a necessary piece in the determining the future success of Minnesota. As a result of expansion and success of business, becoming an integral the critical stature that this component plays in the role of part of the industrial urban landscape, rural Minnesota has economic development, it becomes essential that we are increasingly been left behind. In an effort to curb the aware of the progression in technological advancements growing disparity of this digital divide, explore how state that are available, thus ensuring the success of Minnesota technology grants and private investments are expanding as a world competitor. high speed access. In addition, learn about the .definition and significance of "broadband" to your business and the .Technology Keynote Address future of business technology. 12:45 p.m. - 1:45 p.m. Jeff Nielsen General Manager "IS The Grass Really Greener In The Other State?" United Farmer's Cooperative of Minnesota, Lafayette Minnesota is often said to have languished in the recent information technology revolution. With the demise of Steve Katka thousands of dot.coms, however, Minnesota's true President strengths and weaknesses are now cast in a new light. Loretel Systems, Ada Discover Minnesota's place in the technological revolution and how we can strengthen this position. Rod Mitchell Manager of Business Data Services Jacques Koppel Midwest Wireless Communications, Mankato President Minnesota Technology, Inc. "Partnerships to Commercialize New Technologies" A major 2001 Ventura administration and legislative Concurrent Technology Workshops initiative was the creation of the bio-medical. innovation and 2:00 p.m. - 3:00 p.m. commercialization initiative. Bringing new technologies to market and stimulating new investment is the focus of this « session which centers on partnerships between government, Firing CIp Your Economic Development universities, and private investors and developers as a Imagination" means of attaining these objectives. It was not too long ago that novel innovations such as the Internet were introduced, changing the workplace and the Gary Fields course of economic development forever. Learn about and Deputy Commissioner witness demonstrations of some of the newest technolog- Department of Trade and Economic Development ical developments, potentially transforming the way in which business is conducted, investments are made, and Dr. Mark Pallet success is achieved.. Assistant Vice President for Research Kevin O'Donnell University of Minnesota Academic Health Center Industry Advisor -Emerging Technologies Closing Presentation and Door Prize Drawing Minnesota Technology, /nc. 3:15 p.m. - 3:45 p.m. Ac~jOUrn 3:45 p.m. 6TH ANNUAL MINNESOTA DEVELOPMENT CONFERENCE • a~~~~,oPMF J q ~p~ I~ If~ ~ O 'I ~ 6~~i .~tnnua[ ~/irtrte~ota O~F6 FIB~~'~ ~urtrcerert ~or ~F ~trort er ~u Lure ~ ~ Breakout Sessions Finance: ? Unique Developments From the Corners of Minnesota ? Using Public Money to Develop Private Land ? Here Today, Gone Tomorrow?: Changes in TIF and its Alternatives ? New and Emerging Businesses' Perceptions of Capital Availability Affordable Housing: ? The Revitalization Of The Urban Housing Landscape ? The House That Partnerships Built ? Building Better Neighborhoods Workforce Development: ? The Bridge Over Troubled Waters ? Evolution: Minnesota's Demographic Diversity ? Learning From Our Neighbors Technology: ? Firing Up Your Economic Development Imagination ? Lighting Up Minnesota ? Partnerships to Commercialize New Technologies Please return this form to: Department of Trade and Economic Development Attn: Marketing and Business Unit 500 Metro Square, 121 7`h Place East St. Paul, MN 55101 f ~ Of,~f40 PMeh 6/~. ~'..n...~ ~ //iizne~oEa v CHRe Rf~O Conference Registration Form Please copy this registration form for Cancellation up to October 15, 2001: $25 additional registrants from your Registration refund, minus $25 handling fee. organization or community. Cancellations after October 15 will not receive a refund. Name: Total $ Title: Organization -Community: Please enclose the conference fee with your registration. Address: Payment options (must be completed): City: ? Check Check # State -Zip Code: Make Checks payable to: Minnesota Department of Trade and Phone: Economic Development Fax: If you are a state registrant please provide the following information: E-mail: Fund: 200 Org:1335 Appr: 100 o I do not wish to have the above Revenue Source: 8700 information included on the conference Agency: B22 attendee list. Activity Code: DEVC Early Bird Conference Fee -Before If you are submitting a gfs purchase order, October 1 2001: you may fax the information on your computer screen to (651) 296-5287. $200 per person for members of a co- sponsor organization (DYED, EDAM, Mail your registration to: MBA) $225 per person for non-sponsor members Department of Trade and Economic Development Late Registration Fee -October 1, 2001 Attn: Marketing & Business Unit or later: 500 Metro Square, 121 7`h Place East St. Paul, MN 55101 $250 per person for non-sponsor members $225 per person for members of a co- For questions, please call (651) 296-9090, sponsor organization (DYED, EDAM, 800-657-3858, or dted.devconf@state.mn.us MBA) FROM MESSERLI & KRAMEA tq (FAI) 9. 7' O1 1 1:09/ST. 10: 5 L!NO. 4860001723 P Z d,~ I l L~- - -Z With tax increment financing expected to disappear or shrink significantly under a new state tax formula, officials will have to be creative to receive public dollars for construction projects. Pon r' de ~n future _ a without TIF ~ ~ ~ ~ ' ~ BY BRIAN JOHNSON ~ ~ ~ >R g ~s . Finance and Commerce ~ ~ ~ a~ m , ~~]hen the Minnesota Legislature "~11~EtT ~ ~ ~/~f removed school funding from local a" ro taxes durin the ec '~t~ p party g r ant legisiat?ve ~ ~i session, hundreds of tax increment finance " _ _ ' _ districts were left underfunded and many ~ ~ ~ ' construction projects were put in limbo. The tax change .has developers and ` city officials wondering if there is a ~ future fot TIF, the funding mechanism ~ , that allows cities to use property taxes ~ - _ generated by new development to pay for ~ _ _ _ infrastructure and other site expenses. But Sid Inman, president of the Ehlers & Associates fin- " anciai consulting Mmes property tax overfiaul is expected to put a sneeze on tax ineroment firm of Roseville, fnancins, has a Bole in some hi`hy visitde Thin Cities rodereiap,nent said the chat- Block ~ and the Mlwaukae Road Depot in Minneapolis. lenge before the (Submitted P',^x -x ~ state has more to do with the fut- ure of redevelop- "As an area begins to deteriorate, you converting the statewide tax on commer- ment than the have increased police calls, increased fire. ciai industrial property to a land tbs. The future of TIF calls, the infrastructure deteriorates," he change, be said, would provide an incen- "It's not about said. "We need to remember that every- Live for improvement, especially in TIF," said Inman, body else in town is going to pay Cor that. underused urban areas. House Tax Coenmlt- who -has helped There is a cost of doing nothing." "The principal. goal of property tax Les Cl~nnan Ron create more than Despite those drawbacks, some states reform is to improve Minnesota's ~ompe~- would IR~e ~ 200 TIF districts. do little or nothing when it comes to itiveness in attracting capital investors," sec tt~ h~strial We can debate financing redevelopment, Inman said. Abrams said. "It's a truism that if you tax ~ about whether Other states use development impact something, you'll get less of it. Thus, to ~ a TIF is good or fees and general obligation bonding as encourage iavestment or attract Capital, ony tax ~ bad. But I don't alternatives to TIE it makes sense to reduce the tax on it. rA think there s any Changes in Minnesota's Las system A tax on improvements creates a drag tax an imtx+avements debate that we may require cities to take more risk, he on investments. By contrast, the supply comes a ~ on ~ need redevelop- said, and Financing will be difficult and of land is fined. A tax on land cannot ~e ~ ment in the state costly. Under current laws, be predicted, affect the amount of land in the state." of Minnesota, some redevelopment projects won't Dome Abrams said the conversion to a land And I think to fruition. tax would earn the primary goal of TIF ~ that's where our emphasis should be. Abrams said TIF will still be available -encourage redevelopment and eco- Inman was among the featured speak- in Lhe state -though at a smaller level, nomiC development. "It's unnecessary to ' era who discussed the issue Wednesday He said that he would not be averse to the capture a taa and give it back to encour- during ameeting ofthe Sensible Land Use idea of increasing state appropriations for age developmeat if the taa on the devel• Coalition in St. Louis park. State Rep. agencies that would partner with local opment doesn't apply at all," he said. Ron Abrams, a Minnetonka Republican governments in redevelopment. Several cities in Pennsylvania have who chairs the House Tax Committee, "Subsidies ought to be up front, not used a land tax or graduated land tax to also was a main speaker at the event. hidden," Abrams added. `-`And there spur redevelopment, Abrams said. In Inman warned that the failure to rede- ought to be participation by local units of Minnesota, he added, the conversion velop can result in many costs to society, government, through their citizenry." would be phased in over a 10-year period including higher crime, a declining tax base Abrams also touted an idea that was to give assessors and landowners time to and the spread of blight to adjacent areas, included in the recent House tax bill - adapt to the change. s r~. - • • C~ Business ty September 7, 20th 1 ~ • ~ n a e e o~r~e cans o By Sam Black ~ y tornados.. • ~ ~ I I developments Swff reporter a Paul Donnay, president of Maple Grove- New home construction in Lakeville begin after moratorium ~ based Donnay Homes Corp., which will exploded this summer after the city lifted an a break ground on a 209-unit town-home 1 I -month moratorium on new development. approve a $75 million Levy this fall to build o ~ project in Lakeville this ?nonth, called the Four new developments comprising more a second high school and an addition to an " k. code changes required by the city "pioneer- than Stx) units were approved by the Lakeville elementary school ing" and said that they are among the most City Council in the past month, bringing the City Administrator Bob Erickson said extensive in the Twin Cities. The increased total to 1 I new residential developments with the new develgpments aren't directly taus- amount of exterior brick reyuired is also ',41x) units in final planning stages or already ing overcrowding in the schools. Instead, it ~ higher then in other cities, he said. under construction in the city. occurred as empty nesters traded their four- The town homes-will cost about 12 per- Thatnumber ismore than double the 1,11 I bedroom homes for low-maintenance cent more to build due to the changes, units built in 2(x)U in Maple Grove, which had detached condominiums, opening up the Donnay said, but they should pay for thcm- the most home-building activity in the Twin single-family .homes for families with selves by higher sale prices. t'ities Dist year, according to the Keystone school-age children. The newest developments approved by Report, a Chanhassen-based company that Dean Mittelstaedt, owner of Inver Grove the city of Lakeville. are: tracks home construction. Last year, Lakeville Heights-based Mittelstaedt Bros. • l36 single-family homes and 126 town ~4as fourth with 690 units built, also behind Construction Inc., said Lakeville is a strong ~ ~ homes built by Wensman Realty Inc. on 100 Apple Valley (746 units) and Shakopee (728). market for medium- and upper-priced hour- ~ > : ~s~ acres north of 215th Street and west of Lakeville, population 43,000, has planned es because of its rolling terrain and good. ~ .Hamburg Avenue. for the residential growth by building roads school district. 84 single-family lots developed by and buying up the right-of-ways and wetlands Mittelstaedt said buyers of the $250,000 Country Joe Inc. on about 40 acres, south of in the. path of development. However, the to $300,000 homes he's built in Lakeville 185th Street and west of Ipava Avenue. Lakeville School .District recently informed tend to be in their 30s and 40s with children 728 detached rown homes built by the city it will have a few more growing pains. and professional careers. Progress Land .Development on 37 acres, "it takes a lot longer to develop school The city council put the moratorium in ~ north of 215th Street and west of Dudd facilities than housing developments," said place from September 2000 to August 2001 to Bob Erickson said Lakeviiie's crowded Boulevard. Tom. Coughlin, director of administrative bring. its code standards and its long-range schools resulted from empty nesters • 29 single-family homes and 22 town .services for the Lakeville School District. plan up to date, eventually approving. new .trading their homes far condos, not homes developed by Dan Reiland The new development will particularly zoning rules that included requirements for: from. the city's new developments. Development on 33 acres north of 179th strain Lakeville High School, which has ~ two-car garages for all units; • a safe room in single-level condos that Street and west of Kenyon Avenue. ¦ 2,022 pupils enrolled, 200 more than copse- • at least 100 square feet. of storage in meets standards of the Federal Emergency Sam Black can be reached at (612) 288- ity. Lakeville voters will be asked to each unit; and Management Agency for protection from 2103 or sblock@bizjournals.com. acr-i i-ui iuc uo~ ii nrt nrrRU llCVCWCftC1Yl rnn tYU, 1 t', U~ i ;e < , ~ ~ . { ~ rr Prn~# Std PAID _ W~ur.ro~ WI is l'ris Ui~. _I7nwr rt{di Mr:.~;y. 1 l ~C~MME~RCIAL R~E-~A;L ESTATE L~~AW GIII,DE- 1~ r,;,,,,~. 1~ ~~,E,,~ . t. ~ ~ ~I r.y~ ~ t r ' 4 K~ ~ . ~ ~!~4 ~ X14 ~ ,,,s ~ ~ ~ . W, f L~i ~j/ 1~ 'I 4 "'M ~ ~ ' ~ t ~ A .Yf^y u~. ^~^l»a'ieR~~W,ICeiw.ti ~ ~ ~ /lll1~ ~ - 1\ I ~ A_. II ~ ',~tYa~~,~rw=-fCTT - 1. ~,:-fig"»w: • +.r:,+~:~" .rw a~.. SEP-11-01 TUE 06 11 AM APPRO DEVELOPMENT FAX N0. 1 P, 03 s'' ~ s- .Legislature's Ta~c Actions Aimet~ at Business Property Tip Districts to suffer by Peter Coyle and Sean Kelly property. In years past, it was rot unusu- al to have a business prope ty owner July 23, 2001 Minnesota's recently- paying 3-5 times more in propE~rty tax as .concluded legislative session may be compared to a taxpayer with similarly remembered by some as being too long valued homestead or farm. IVloreover, and with too much partisan bickering; the business taxpayer pays tars to sup- . but, far most owners of business proper- Port the local school systE m, even ty, it may be well worth the wait. The .though a business places ~o direct ' 2001 Minnesota Legislature made major demands on the school system. changes in Minnesota's property tax sys- In prior years, rather than making struc- tem, including the system far financing tural changes to remedy the well-docu- new developments. While the changes mented disparities in .Minnesota's prap- to the property tax system should yield erty tax system, the hegislatu-e .merely meaningful tax relief, in the area of tax "purchased" propertytax relief ~y putting increment financing, the changes could additional general fund dollar:~ into. the. prove to be very harmful, especially for state education budget. It w.~s hoped so-called "pay as you go" districts. that by doing this, local school districts: would be freed from the .pressure. to Property Tax Reform: Governor increase local tax levies. Unfortunately, Leads, LeglS~ature FOIIOWS this did not generally occur, largely due The most important achievement of the tv the constant upward .march of faculty 2001 legislative session is the and staff salaries at the schcol district Legislature's reform of Minnesota's level, combined with rising property val- complicated -and for business proper- ues. Therefore, in spite of a :>ignificant ty owners, unfair ~---property tax system. infusion of cash, local taxes continued to - The reforms enacted thts year continue rise by, in some cases., dcuble-digit amounts. down the path of more tax rate com- pression, but also include the repeal of Last year, Governor Ventura signaled the state education levy, which accounts that he was going to take an tl~e reform for nearly half of the local property tax of the property tax system in .the 2001 levy. The progress made on these fronts session. He sent his senior st<<ff around will be offset,. in part, by a new statewide the state for public meetings to fain input tax on business property. on the kind of property tax s~~stem .the Over the past several public would support. The proF?osal pre- years, the pared by the Governor's staff initially Legislature has been attempting to included an expansion of thE: existing address the high rate of taxation for statewide sales tax to include services. business property: commercial, industri- The sales tax expansion was ettisoned al and rental housing. Minnesota's early on during the 2001 sessicn; but the national recognition as a high-flax state balance of his property tax proF~osal held is clearly reflected by the disparity in the together, partly because the Legislature .property tax on homestead residential could not agree on changes c?f its awn and farms vs. commercial and industrial making. s S~ l-0? TUE 06~ 12 AM APPRO DEVELOPMENT FAX N0, 1 P, 04 . Forward Progress for Business has eliminated the general ecucation Taxpayers - In the end, the levy as the primary local tax captured by Minnesota Legislature embraced most TIF districts. As a result, starting in 2003 of Governor Venture's proposals for most TIF districts will generate less than property tax reform. The top-tier class ?0 percent of the tax increment rev- rate for commercial and industrial prop- enues generated in prior years..~econd, erly was reduced from 3.4 percent to 2 the substantial reductions in K roperty percent; for rental housing the top rate class rates described above will likely was reduced from 2:4 percent to 1.5 further decrease the amount c?f local percent. In addition, the Legislature taxes captured within a given TIF district. assumed full responsibility for funding The degree to which reduced cla::s rates. the state's share of K-12 education will impact tax increment re~ienues costs by eliminating the general educe- depends, in large part, upon how local tion levy frorr~ the local property tax. This tax rates are adjusted in respons'. latter change is an important shift in that To the extent tax increment revenues are the local property tax will now be used to reduced as a result of the 2001 Property fund only local services. tax reforms, any debt secured with tax To make up for the loss of tax. revenue increment is jeopardized. Such TIF debt attributed to the state's assumption of K- is widespread throughout the ~ tate of 12 education costs, the Legislature Minnesota, ranging from registered gen- imposed a new statewide property tax eral obligation or revenue bonds issued on commercial, industrial and seasonal by local authorities, to pay-as-you-go recreation properties. This tax will be ("PAYG") notes issued .directly to devel- levied to raise a fixed amount of $592 opers. In recognition of the potentially million beginning in 2002, with the devastating fiscal impacts of the ~roper- .amount of tax collected in the future ty tax reforms upon outstanding TIF beginning in '03 debt, .the t_egislalure enacted various indexed to inflation; ~ "transitional rules" intended to reduce any increase in tax revenue beyond the the deficits caused by the reform~~. rate of inflation will be ean~arked for K- 12education. Chief among the transitional rule, is the According. to state fiscal analysts, the creation ,of the so-called "TIF Grant combined effect of the .changes to the Program. The Legislature has. aG propri- property tax system should result in at ated $91 million in fiscal year 20+)2 and least a 10 percent reduction in property $38 million in each year thereafter to taxes for owners of business property. fund this program. Local authoriti a fac- ing deficits in Tlf districts as a rE~sult of .Reforms Create Uncertainty for the property tax reforms may app{y for grants from this pool, after exh~rusting rIF Projects. While the various other statutory remedies. While .Legislature's reform of the property tax the. specific procedure for apply ng for system is good news for most owners of grants under .the TIF Grant Program .business .property, the reforms will likely remains uncertain, the legislation does have a detrimental effect upon those include two general eligibility rE;quire- projects. that have. been financed in ments. First the TIF district fa~:ing a whole, or in part, through tax increment deficit must have been created F rior to financing {"TIF"). Since TIF is a direct .:August 1, 2001. Second,. only "pr:exist- function of the property taxes generated ing obligations" created prior toAu~~ust 1, by a project, the negative impact of the 2001 count towards establishing a deficit reforms is two-fold. First, the Legislature for a TIF district. ~o SEP-11-~ 1 TUE 0612 AM APPRO DEVELOPMENT - FAX N0. 1 P, 0~:,, , The tern "preexisting obligations" is This issue will na doubt come tc+ light as broadly deFined in the legislation to the first round of TIF Grant applications include any bonds or contracts. to the are submitted to the Depart~nent of extent such obligations are secured by a Revenue. pledge of tax increment. Despite this seemingly clear definition, however, a About the Authors: Mr. Cv;ale is a difference of opinion is emerging among shareholder and chair ~f the practitioners as to whether it includes Government Relations Department of PAYG obligations. Predictably, counsel Larkin, Hoffman, Daly and Lindgren, Ltd. for various heal authorities are taking His practice is focused on adv,sing pri- the position that such obligations are not vale developers and properly owners eligible .under the TIF Grant Program .regarding land use regulatory matters, and other transitional rules. The statute including the use of tax incremenf does not distinguish PAYG notes from .financing for development projeas. any other bonds and/or contracts Mr. Kell ~s a member of the Lind Use secured by tax increment, however. In Y fact, certain State officials and lobbyists and Rea! Estate Development De ~artment charged with monitoring this legislation at Larkin, Hoffman, Daly & Lindgren, Ltd. believe that the broad statutory Ian- His practice is focused in the areas of tax gunge ultimately enacted was intended increment financing, public fina~ice, and to specifically include PAYG. obligations. real estate development. ¦ Are you a Commercial Beal estate Attorne~~ who should be profiled in this publication? Yaur Listing will include: ~ f you practice Commercial fZeol Estote .ow in • MN Commercia) Roal Estate Attorney Minnesoto, you r profile should be incl++ded in • Namc the next edition of this Guide_ if you had included your profile here, it would have • MN Law Firm Name been read by over 20,000 real ' • MN Addrdss estote professionals. These • MN City, MN Zip Code t h reader ore in Minnesoto os ~'~t,,. • Commercial Real Estate Law Gat©gories ,,,,ell as real estate profession- • Phono Number ~ o1s throughout the country who ' • Fax Number hove an interest in Minnesota ~ Web Page Addrdss real estole. For only 5295, • Biographical Profile your biographical profile (writ- ten by you) could be in front of these key potential 7o enSUre you are clients. This is not a list of a!I types of ath~rneys included in future editions, senr to al) typ~5 of people. This is o targE ted sec- ea11 David Stanezak at 952-703-8926 tier devoted to Commercial Real Estate .aw and or email hirn at Stanczak@LBPC.com. mailed only to potential client;. 12 ' 1 I. ""1 1 1' ~ 1 ~ 1, Ecanan~ic Deve1'apment and Site Selertian an~erence Pr~sE~nle:d kw she ,Minnesai~t R+?al FstalE ~or~rnal or,d the Sher~ehon Center kor Ruc+! Estole Education ctl the Uni~~ersiry c,{ St. Tl7ornc~s. Who Should Attend: Commercial Real Estofe Brokers, r„'/~Qb~'~ Cgrparote Reol Estate Executives, ~arparatc- Real Estota Consultants, Developers, City Adminstrators, dtl1 nQ~n Economic Development Professionals, /architects, Space Planners, Interior Fe~fured Speakers Designs, Envirpnmerrtol Cansl,ltc,nts, ConStructlQn, Flnpnciul and othEf real Dr l F~omas A. Mus~l, Ur~i`~er5lty 4G ;it Thoma, D~rr<i Ur. _°atrrrlC~~i)n C c'nfi'r f~)! FCO~ FSiU!q ~t~~~r-rilri ~r~ ~1 estatrr related profQSSianals' JCI~C7 ~.COCII ~ ~n 1USlf onl Foegrc+ 2i Pinson Why Altend~ RSM McGlodrey The confbrence is designed to generate FJRG disCussigns on fl7e latest issues conct~rning sits selection and Aane! presentati®ns: devblop+nent of C4rpO+°dt@ fpCr+I+t1~5. 1 Detailing ndvantngos and disadvanlayc5 of site ThE SPeQkErS will COVET tho' FOllowing se~bdion with competing ~ihes and LuSIf1B55 partrs. , t©plCS' Cnvlronlnental , ~@gal, 2 UISCVY:iUII nn [~i~wront inccriirveo pru~iC~ed l,y Architecture/Space Planning Ond ~li~ifyCOinpdnic: Financing of new coporate facilities. In addition, we have two roundtable c~is[ussiorls: Utility Inc@rttives end , , _ _ _ ~ other- Ccon~~n+ic Development tools. ~ ~ 5earc~inc~ for a r_pmmunity ?i,r your' new corpurote ~o+~il,ty or rnpnu~aCturin9 plant. _ ~ 'Four hours of Real Estate and Appraisal Continuing Education Credit has been approved by the Minnesota Commissioner of - ' Commerce. i~. r -ti MIlIME501A arL; ~r , 1 ' ~ E 1( )~1 ~ f~ ~ REAL ESTATE JOURNAL , ,