HomeMy WebLinkAbout03-23-04-04 City of Lakeville
Economic Development Commission
Meeting Minutes
March 23, 2004
Marion Conference Room, City Hall
Members Present: Comms. Srantly, Emond, J. Erickson, Gehrke, Matasosky, Pogatchnik,
Schubert, Tushie, Ex-Officio member Robert Erickson -City Administrator, Ex-Officio member
Todd Bornhauser -Executive Director -Lakeville Area Chamber of Commerce
Members Absent: Comms. Miller, Smith
Others Present: Staff present: David Olson, Community & Economic Development Director;
Amanda Schwabe, Economic Development Coordinator
1. Call Meeting to Order.
Chair Matasosky called the meeting to order at -6:00 p.m. in the Marion Conference Room of
City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota.
2. Approve January 27, 2004 Meeting Minutes
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Comms. Erickson asked for clarification of TEA-21.
Mr. Olson explained that TEA-21 is an acronym for "Transportation Equity Act".
Motion 04.05 Comms. Erickson/Schubert moved. to approve the .minutes of the January
27, 2004 meeting. Motion carried unanimously.
3. VFW Code Improvement Project Approval
Mr. Olson stated that City staff has been in discussions with representatives of the VFW
Club for several .months regarding the use of CDBG funds to assist with the necessary code
improvements for their fire damaged kitchen within the club building and to also. assist in the
demolition of the vacant house owned by the VFW located at the corner of 209th Street and
Howland Avenue.
He explained that the City has offered up to .$80,000 in CDBG assistance for the necessary
repairs. and code improvement work for the kitchen area of the building. Because a Code
Improvement project was not done in 2003, the City will be utilizing remaining 2003 funds for
the VFW Code Improvement project. Mr. Olson stated that the VFW would be required to
expend an amount equal to the CDBG assistance in repairs and replacement of equipment
and fixtures. The total cost of the project is estimated to be $215,000.
Mr. Olson informed the EDC that the code improvements to the kitchen were part of an
agreement with the VFW Club that they would work with the City on the demolition of the
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corner house.. The second house, owned by the VFW Ciub, is not part of negotiations at this
• time -since it will be occupied until April.. Negotiations at this time may trigger relocation
requirements.
Mr. Olson continued by saying that the. goal is to have the demolition of the first house and
the VFW kitchen repairs completed by Pan-O-Prog.
Mr. Olson shared with EDC members that Comm. Tushie had expressed concerns to him
regarding the public purpose aspect of the project. Mr. Olson stated that the VFW Club is
located within the Downtown Special Service District and that demolishing the .house on the
corner qualifies as removing slum and blight and once removed, will provide for additional
off-street parking for both. the VFW Club and other downtown businesses.
City Administrator Erickson stated that he had spoken with the President of the. Downtown
Lakeville Business Association (DLBA) and she has indicated that the house is considered to
be one of the last remaining areas of slum and blight in the Downtown and that removing it is
the DLBA's highest priority.
He continued by saying that it took several weeks of conversation to convince the VFW Club
House Committee to agree to demolition of the house.
Mr. Olson .explained that the VFW Club had started renovation of the house last year with
plans to sell it and use the proceeds to assist in the kitchen remodel and repairs. Had the
• City not offered CDBG funds, renovation of the house would have continued.
Comm. Tushie shared that his only concern was setting a precedent. He stated that in the
past, having a location on Main Street, paying taxes and creating jobs were criteria to obtain
CDBG funds.
City Administrator Erickson. informed EDC members that the VFW Club does in fact pay
taxes.
Comm. Tushie recommended that the City be very specific about the reasons they offered
financial assistance in the form of CDBG funds to the VFW Club.
.Comm. Pogatchnik asked whether the VFW Club is a viable business?
City Administrator Erickson stated that the only way to maintain a sense of order for the VFW
Club is to do this project. He said that the VFW Club is an institution and a part of the
community.
Comm. Erickson informed EDC members that the VFW Club would not be able to exist
without the kitchen.
Comm. Brantly asked whether the building could be used for something else?
City Administrator Erickson shared that other area non-profits could possibly use it.
Chair Matasosky asked if anyone else had applied for CDBG funds this year?
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Mr. Olson responded by saying that no other applications have been received. Due to the
• .unknown costs. involved with the Drycleaner/Car Wash site, the City held.. off doing a Code
Improvement Project last year. He reiterated that the City is utilizing 2003 Code
Improvement funds for the VFW Code Improvement project and will have 2004 funds
available in July to do a second project if desired.
Motion 04.06 Comms. Tushie/Emond moved to approve the use of CDBG funds to assist.
in the Code Improvement Project. at the VFW Club and demolition of the
vacant house owned by the VFW Club, located at 8785 209th Street West,
to improve the aesthetics of the Downtown by eliminating.. slum and blight
and creating additional off-street parking for public use. Motion carried
unanimously.
4. Dakota Electric Association Partners 1n Progress Overview
Ms. Schwabe informed EDC members that the Dakota Electric Association (DEA) held .its
annual Partners In Progress event at Royal Cliff, Eagan on March 3rd to celebrate growth
and development in Dakota County. She stated that a copy of the booklet produced by the
DEA, which highlights development in Dakota County communities was included in
everyone's. packet.
Ms. Schwabe thanked Chair Matasosky and Comms. Brantly, Schubert and Bornhauser for
attending the event .along with Mayor Johnson, Council members Rieb and Wulff and City
• staff.
Ms. Schwabe shared. that representatives from DEA and Dakota County Technical College
recognized City .Administrator Erickson during the event for his many years of service
working with Dakota Electric.
Comm. Pogatchnik asked how much new development is served by DEA?
City Administrator Erickson stated that approximately 70% of new development, primarily
residential areas, is located in DEA's service territory.
City Administrator Erickson asked EDC members to compare the valuation per unit of Apple
Valley and Lakeville. He stated that. Lakeville is generating much greater per unit valuations
than any other Dakota County community.
Mr. Olson informed EDC members that more copies of the .booklet are available if EDC
members would like additional copies to distribute.
5. Scheduling Plarat Tours/Off-site Meetings
Ms. Schwabe stated that business retention and expansion efforts including on-site business
visits were identified in the fourth work program goal of the 2004 Strategic Plan Work
Program as an effort to encourage a balanced tax base.
She continued by saying that staff is proposing to include EDC members in business
retention and expansion efforts by hosting EDC meetings at Airlake Industrial .Park. and
Fairfield Business Campus businesses two to three times a year. She explained #hat hosting
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• EDC meetings at local businesses would provide an opportunity for EDC members to
introduce themselves to business representatives, take plant tours and learn about the
variety of products produced in Lakeville.
Comm. Pogatchnik stated that this would be a good way for EDC members to meet and
communicate directly with business owners. He said that. businesses are usually happy to
hear from the EDC.
Comm. Brantly stated that this would build better relationships.
Chair Matasosky agreed and stated thaf it would also improve approachability.
Mr. Olson shared that the Chamber hosted Leadership Lakeville at Con Agra Foods last
week and that learning about the industry and what it takes to thrive in a global economy_
was very informative.
Comm. Pogatchnik .asked whether staff would consider hosting meetings at retail
businesses?
Mr. Olson. stated that staff would. take suggestions and make contacts.
Ms. Schwabe shared that staff is considering the months of April, August and November for
off-site meetings.
• EDC members recommended DHY, D.R. Horton, Cloverleaf Cold Storage, C.H. Carpenter,
Con Agra Foods, Imperial Plastics and the second High School as possible off-site meeting
locations..
Mr. Olson asked if EDC members .would have flexibility with meeting start times when they
are held off-site?
EDC members responded that they would with adequate notice.
6. Update on Aircraft Resources Center
Mr. Olson stated that he was recently contacted by representatives of Aircraft Resources
Center requesting a meeting to discuss their current plans for updating their Fixed.... Base
Operator. (FBO) facilities at Airlake Airport. He said that at the meeting. he was able to meet
Franko and Tony Fiorillo, father and son, who are and have been the owners. of Aircraft
Resources Center since they purchased the FBO from Steve Wentworth. He was also
informed at this meeting that Ron and Kurt Hanson are no longer associated with the
company.
Mr. Olson explained that the Fiorillo's indicated that rather than just adding a hanger addition
to the existing FBO complex of buildings that was proposed .last year, they are now
considering .constructing a new building to replace the entire facility. He continued to say
that the Fiorillo's feel that the current building is too close to the taxiway and runway.
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Mr. Olson shared that upgrades are constantly occurring at the Airlake Airport including the
• addition of full-time staff, adding additional aircraft .mechanics and flight school classes
running on a regular basis.
Mr. Olson informed EDC members that the annexation that took place last year does not hurt
the situation and that all of the leased area is now within the City.
Comm. Brantly inquired whether the Fiorillo's are comfortable with the current length of the
runway?
Mr. Olson. stated that the Fiorillo's are not looking to lengthen the runway at this time.
Comm. Pogatchnik shared that the Airlake Airport is busy and that it would be nice to see
.that area utilized to its full potential.
7. Director's Report
Mr. Olson shared that H.J. Development, the developer of the commercial portion of the
Crossroads Development was featured at the City Council meeting as the March 1St Spotlight
on Business participant. He stated that Jeannie Schubert introduced Pinnacle Products, Inc,
at the March 15t" City Council meeting.
Mr. Olson informed EDC members that the City Council authorized the advertisement for
bids for the CSAH 50 Interim Improvement Project at their March 15t" City Council meeting.
He explained that the bid opening is scheduled for April 14t" with a Council bid award
scheduled for the April 19t" City Council meeting. He also stated that right-of-entries has
been retained. from all but a few property owners adjacent to the project.
Comm. Pogatchnik inquired why the 985-PLAN sign was placed by the old Taco Bell?
Mr. Olson shared that the Super America Convenience Store will be relocating to the old
Taco Bell site. He explained that once all of the interchange improvements. are completed,
Super America would be on the corner of t76t" Street and Co. Rd. 50.
Comm. Tushie inquired about what will be happening to CSAH 60?
City Administrator Erickson stated that two new bridges would be installed over a period of
18 months. He mentioned that 185t" Street would also be updated to four lanes from I-35 W
to Prior Lake.
Mr. Olson informed EDC members that through the end of February, the City has issued
building permits with a total valuation of $23,356,650 compared to a valuation of
$18,462,087 during the same period in 2003.
Mr. Olson stated that Metropolitan Council Environmental Services (MCES) has just begun
work on the Regional Wastewater System Plan Update to study the potential future Empire
Wastewater Treatment Plan Service Area. He explained that the .plan update would be
.evaluating the future wastewater demands of the current cities that utilize the Empire plant,
and will also evaluate the impact of current and proposed development in Elko, New market
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and. New Market Township. He stated that Elko and. New Market need to expand their
current plant before regional sewerwill be developed.
City Administrator Erickson shared that Lakeville is trying to assist the communities of Elko
and New Market to achieve the best possible fiscal outcome. He stated that City .Officials
have suggested they build less capacity than is being proposed and continue to grow as
planned until their comprehensive. plan needs to be updated in 2008.
Comm. Emond asked what that means to Eureka Township?
City Administrator Erickson .explained that Eureka Township has realized that the pipe may
increase development in the northwest corner of the Township. City staff has assured
Eureka Township that Lakeville is not considering annexation of any additional property.
8. New Business
Comm. Brantly asked how the Corridor & Gateway Design Study for new development has
been working?
City Administrator Erickson stated that it has had a major impact on image areas in the
community. He explained that the. County has been increasing. rights-of-way and that the
City is doing the best it can to balance landscaping with the transportation improvements.
Chair Matasosky shared that large amounts of right-of-way and landscaping can seem
excessive.
.City Administrator Erickson informed EDC members that the City is trying to achieve high
quality aesthetics in landscaping and architecture.
Comm. Brantly. stated that the Corridor & Gateway Design Study was created to keep. the
City looking nice and to create an identity.
Comm. Erickson inquired whether there was a grocery store committed to the United
Properties site?
Mr. Olson explained that there have been two large grocery store chains considering that
development.
9. Adjourn
The meeting was adjourned at7:t0 p.m.
Respectfully submitted by: Attested to:
Amanda Schwabe, . T. Brantly, Secre
Economic Development Coordinator
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