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HomeMy WebLinkAbout11-30-04-04 City of Lakeville Economic Development Commission Meeting Minutes November 30, 2004 Marion Conference Room, City .Hall Members Present: Comms. Brantly, Emond, Gehrke, Matasosky, Miller, Smith, Tushie, Ex-Officio member City Administrator Steve Mielke, Ex-Officio member Todd Bornhauser -Executive Director -Lakeville Area Chamber of Commerce Members Absent: Comm. J. Erickson, Pogatchnik, Schubert Others Present: Staff .present: David Olson, Community & Economic Development Director; Amanda Schwabe, Economic Development Coordinator, Vicki Roiger, Leadership Lakeville participant, Alison Vivant, area resident 1. Call Meeting to Order. Chair Matasosky called the meeting to order at 6:05 p.m. in the Marion Conference Room of Gity Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. • 2. Approve October 26, 2004 Meeting Minutes Motion 04.13 Comms. Smith/Emond moved to approve the minutes of the .October 26, 2004 meeting. Motion carried unanimously. 3. Review of fina12005-2007 Strategic Plan for Economic Development Mr. Olson stated that at the October 26t" EDC meeting, Commissioners authorized the preparation of the final 2005-2007 Strategic Plan for Economic Development and that staff has incorporated the information and data that has been reviewed and discussed at past EDC meetings. A draft of the final plan was included in the :packet. He continued to say that a work plan was not included in the 2005-2007 Strategic Plan for Economic Development but rather would be :prepared as a separate document and .reviewed with the EDC at a later date. Chair Matasosky shared that the work .programs used for the 2002-2004 Strategic Plan were good because it identified the amount of staff time .necessary for each action step. Ms. Roiger stated that from an outsider's perspective, the plan is user-friendly for .people who are not familiar with the EDC. Economic Development Commission Meeting Minutes November 30, 2004 i Mr. Olson recommended a press release be issued to the local papers after the plan is approved by the City Council to inform area residents and businesses about the efforts of the EDC. :Comm. Emond recommended staff summarize the document and making it available on the website. Mr. Olson explained to EDC members that staff would be preparing a Report on Economic Development in the first quarter of 2005 that will summarize the achievements as a result of the 2002-2004 Strategic Plan. Motion 04.14. Comms. Emond/Tushie moved to recommend approval of the 2005-2007 Strategic Plan for Economic Development and forward to the City Council for their approval in December. Motion carried unanimously. 4) 2005 CDBG Application Mr. Olson explained that the City has to submit an application for 2005 CDBG funds to Dakota County by December 31, 2004. The City is expecting to receive approximately $108,300 in 2005, which is approximately 5% less than what was received in 2004. • He continued to say that the Dakota County CDA is implementing a new requirement for 2005 applications that requires all subrecipients to submit applications with at least 50% of the funded activities be projects .that provide benefits to low/moderate individuals.. HUD requires 70% of total County CDBG expenditures be for activities that benefit low/moderate income individuals. The new subrecipient requirement will ensure the CDA meets the HUD requirement. Mr. Olson-shared that in recent years, CDBG funds in Lakeville have been used for code improvements and demolition and clearance of projects in the Historic Downtown, which are .considered .slum/blight removal activities. The last low/moderate income eligible activity funded by CDBG in Lakeville was when the City assisted in the acquisition of the Wren site for a future family rental housing project in 2001. Mr. Olson explained that there are a number of .possible low/moderate income eligible CDBG activities currently being researched by staff including Housing Rehab Loan Programs and several .programs that would benefit Senior Citizens. The CDA has two Housing Rehab Loan Programs currently in .place. The first program is a housing rehab loan program that is administrated on a countywide -basis from a pool of CDBG funds. Mr. Olson explained that Lakeville could :designate a portion of our allocation to :make available specifically for loans to be • made in Lakeville. 2 Economic Development Commission Meeting Minutes November 30, 2004 • Chair Matasosky questioned if the revolving loan funds come back to the City? Mr. Olson stated that loans could be made for up to $25,000 and that they are. traditionally deferred until the sale of the home at which time repayment of the loan is due. He continued to say that this loan fund is not for cosmetic improvements, but is intended to provide funding for necessary improvements :including roofs, siding, furnaces etc. The second type of housing rehab loan administrated by the CDA is a Manufactured Home Rehab Loan Program that provides loans up to $5,000. He explained that the .City of Apple Valley has funded this type of program for a number of years. He expressed concern that two manufactured housing parks in .Lakeville (Connelly and Queen Anne) are non-conforming uses and that the City would have to determine whether or not to make money available to non conforming uses. Mr. Olson informed EDC members that programs and .projects benefiting senior citizens automatically qualify as low/moderate income eligible activities. He explained that staff has identified two senior citizen programs for EDC consideration. The first program would be to fund capital improvements to the Senior Center. in downtown Lakeville. He stated that unfortunately the projects identified by the Parks and Recreation staff are of smaller dollar amounts. • The second senior citizen related pro ram would be to fund additional transit g services specifically for seniors above and beyond the DARTS service currently available. City Administrator Mielke explained that a group of individuals from Winsor Plaza came forward this summer regarding the .lack of transit services for seniors in Lakeville. He continued to say that Lakeville is not :part of the Metro Transit Taxing District and thus DARTS services are limited. He also shared that one option would be to supplement on a contract :basis with DARTS to provide additional services. He stated that commuter and handicapped transit services are also being requested. Mr. Mielke posed the question to the EDC about whether or not they would be .interested in using CDBG monies to fund additional transit services? Comm. Emond stated that it was his understanding that :DARTS had more ervices available to Lakeville seniors. Comm. Tushie asked if .Lakeville could use CDBG funds to start a land trust foundation for either owner-occupied or rental units for ow/moderate individuals? Mr. Olson indicated that that may be an option and that the City of Northfield does • something similar. 3 Economic Development Commission Meeting Minutes November 30, 2004 • Comm. Emond questioned if the existing home rehab loan programs are meeting the need? Mr. Olson explained that the home rehab loan .program. balance is currently at $1 million countywide compared to $1.8 million at this time last year. The annual allocation to that program is approximately $800,000-$1,000,000 countywide. He continued to say that if Lakeville designated a portion of our allocation, we could market the program to ensure timely expenditure of funds. Chair Matasosky stated that it is difficult to make recommendations if they do not know what the need is. City Administrator Mielke shared that every year. it is a concern that the government will not fund the CDBG program the next year. If the City funds a program that will continue to need funds once they are eliminated the City is creating a liability. Comm. Bornhauser asked what the estimated cost would be for Lakeville to join the transit system? City Administrator Mielke explained that the cost would be between $500,000 - $750,000. He continued to say that there are many options for transit. The City • could levy that same amount and contract for services, which guarantees. pecific services and control A benefit to joining the transit system is that once the City is a member, they have the opportunity to work with a larger .pool of capital .dollars. He also stated that higher density areas tend to be more conducive to fixed route.' bus service. Chair Matasosky questioned if there had been discussion of a new community survey? City Administrator Mielke ,responded yes, there is money budgeted. for a community survey in 2005. Mr. Olson explained that staff is recommending that 50% of the CDBG funds be allocated for a possible Downtown Code .Improvement .project as it is anticipated the 2004 Downtown Code Improvement funds may be recommended to be re- programmed to fund the Downtown Plan that was recommended in the 2005- 2007 Strategic `Plan for Economic Development. He continued to say that at this time staff is .requesting direction from the EDC as to what types of programs the remaining 50%° of 2005 CDBG monies should be allocated for. Comm. Bornhauser inquired about the City's flexibility to re-.program the funds. • 4 Economic Development Commission Meeting Minutes November 30, 2004 . Mr. Olson informed EDC members that the City could request an amendment to the CDBG application to move monies into different program areas. He explained that the City has approximately $1D0,000 left from the last two-three .program years. Comm. Brantly stated that he would like to incorporate monies towards senior related activities. Comm. Tushie asked if there were other activities that could be done to benefit seniors? Mr. Olson explained that the City could use CDBG funds to acquire property for additional senior housing facilities. He continued to say that the 2005 funds are monies available to use from July 2005 through June 2006. City Administrator Mielke stated that the EDC could go to the City Council and say that both transit and affordable housing are issues identified by the 'EDC and that ..the specifics will be worked out during the implementation stage. Mr. Olson informed. EDC members that the application requires specific activities to be identified and does not allow a City to identify details at a later date. • City Administrator Mielke stated that the City could designate funds to supplement the CDA .Housing Rehab .Loan Program and advise the City Council as issues related to transit and affordable housing :are reviewed further for possible future amendments. Motion 04.15 Comms. Tushie/Emond moved to recommend allocation of 50% of 2005 CDBG funds to the Downtown Code 'Improvement :Program and the remaining 50% to the Housing Rehab :Loan Program. Motion carried unanimously. 5) 'Review of discussion with Parks, 'Recreation :and Naturai Resources Committee .regarding Park Dedication requirements Mr. Olson shared that the Parks, Recreation and Natural Resources Committee held a meeting on Wednesday, November 17th to discuss increasing the ;park dedication fees for .Commercial and Industrial developments. EDC Chair Matasosky and Commissioners Brantly and Pogatchnik were in attendance at the meeting. Ms. Schwabe passed out copies of the minutes from that meeting. Chair Matasosky explained that the EDC went through this .process a few years ago when increasing the fees created an uproar in the development .community. He continued to say that at that time there was not a ,process to determining a rise • in fees. This year the Parks, Recreation and Natural Resources committee asked 5 Economic Development Commission Meeting Minutes November 30, 2004 • for the EDC's opinion on what would be tolerable. He mentioned that the other outcome was the underlying concept to make new residents and businesses pay their own way. Mr. Matasosky indicated that he feels there should be more of a process including analysis and reasoning for an increase in fees. Comm. Tushie stated that some of the park dedication monies are allocated for future parks .and improvements. He also explained that it is difficult to plan for parks in the future. Mr. Olson informed EDC members that every five years the Parks, Recreation and Natural Resources Committee and staff review the Parks and Recreation Comprehensive Plan for the City. He continued to say. that they have indicated. that with more of the City developed; they are better able to determine the long term (20-25 years) capital improvement needs to the park system. Lastly, he mentioned that they are looking at an inflationary adjustment in the. upcoming year. Comm. Tushie stated that Lakeville has a larger supply of available land, which is why Lakeville is such a unique community where .people want to live and work. He questioned if there is a need for a bond referendum to purchase .land now rather than just using Park Dedication fees? S Mr. Olson stated that this memo was more of an FYI item and that staff. is not requesting a recommendation from the EDC at this time. Comm. Smith shared that he feels it is not the job of the EDC to be focused on ,park development. Comm. Tushie explained that however, it is .part. of our job to ;provide an :environment :conducive to businesses locating .here. 6) Director's Report Ms. Schwabe informed 'EDC members that Commissioner Erickson was released from the hospital on November 19tH, but had to return on the 25tH due to an infection. She explained that his wife Martha indicated that Jerry was responding welt to medication for the :infection and was expected to be released tonight or .tomorrow. The City sent flowers to Jerry on behalf of the EDC and City staff. Mr. Olson shared that Comm. Schubert introduced Tom Dunsmore, President of The Dunsmore :Company of Minnesota, which developed Lakeville Townoffice -Park in .conjunction with Imperial Homes. He continued to say that Advanced Wireless Communications will be introduced by Tom Smith at the December 6m City Council meeting. • 6 Economic Development Commission Meeting Minutes November 30, 2004 Mr. Olson explained that Ms. Schwabe is continuing to work with the CDA to demo the vacant, single-family structure at 20860 Howland Avenue. Staff is hoping to complete this project as soon as .possible. Mr. Olson also shared that the customer service training for City employees that was scheduled to be completed in 2004 has been postponed to 2005 due to the recent resignation of the City's Human Resource Manager. Staff will keep the EDG informed at upcoming EDG meetings. Mr. Olson .informed EDC members that the November session for the second year of Leadership Lakeville, which focused on leadership in Business .and :Economic .Development, was held on November 18t" at the new Advanced Wireless Communications building. He explained that Todd Bornhauser and himself .assisted with putting together the program and Chair Matasosky made a presentation to the group regarding the role of the EDC and its work to develop a Strategic Plan for Economic Development. Lastly, Mr. Olson .reminded EDC members that RSVP's for the Advisory Appreciation Holiday event are due to Judi Hawkins tomorrow. 7) Adjourn The meeting was adjourned at 7:20 p.m. Respectfully ubm/_ fitted/(by)/: Attested to_.~ /lA ! L~~~ del/~/ V Y ~j" Amanda Schwabe, R. T. Brantly, Secretary Economic Development Coordinator 7