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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 • 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 1 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? 2 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 3 • 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. 4 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 5 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 6