HomeMy WebLinkAbout04-11-06-06 Ci#y of Lakeville
Economic Development Commission
Special Meeting Minutes
.April 11, 2006
Marion Conference Room, City Hall
Members Present: Comms. Matasosky, Erickson, Brantly, Emond, Gehrke, Schubert,
Ex-officio member Chamber of Commerce Executive Director Todd Bornhauser, Ex-
officio member City Administrator Steve Mielke.
Members Absent: Miller, Pogatchnik, Tushie, Smith.
Others Present: Staff present: David Olson, Community & Economic Development
Director; Adam Kienberger, Economic Development Specialist.; Dennis .Feller, Finance
Director.
1. Call Meeting to Order.
Chair Matasosky called the meeting to order at 5:30 p.m. in the Marion Conference
Room of City Hall, 20195 Holyoke Avenue,. Lakeville, Minnesota.
2. Discuss Life Time Fitness Business Subsidy Agreement
Mr. Olson. reviewed the history of the parcel where the proposed Life Time Fitness
project will be located and then reviewed the terms of the business subsidy
agreement. The City will convey the property to Life Time Fitness. and defer
.payment interest free until July 4St 2010 when the first half of the payment will be
due.
Mr. Olson continued by stating that this proposed financing arrangement constitutes
a business subsidy under Minnesota Statutes 116J.993 to 116J.995 (the "Business
Subsidies Act"). Because the Lakeville market conditions are approximately 3 years
or more away from when Life Time would typically do a project, the business subsidy
is warranted as an incentive to bring this amenity, additional tax base and new jobs
to Lakeville. He further stated that even though the agreement only specifies 49
jobs to be created in the first 24 months of operation, the business is projecting close
to 200 new jobs for the City.
Mr. Olson .added that the last project Lakeville did a business subsidy for was
Advanced Wireless Communications in the Fairfield Business Campus.
Mr. Olson next outlined the timeline for the project:
April 25t", 2006 -Neighborhood meeting
May 18t", 2006 -Planning Commission Meeting
June 5t", 2006 -City Council Meeting
Summer, 2007 -Facility open for business
Economic Development Commission
Meeting Minutes
April 77, 2006.
Comm.. Schubert asked about the reference to Article 7 under Section 6.3
(Repayment) of the Business Subsidy Agreement.
Mr. Feller and Mr. Mielke clarified that the because the business subsidy agreement
is part of the larger development contract, the goals outlined in the business subsidy
agreement section are specifically tied to the repayment methods required by law in
the business subsidy agreement and are separate from other development goals
and remedies provided for in the other sections of the development contract.
Commissioners asked numerous additional questions relating to the number of
memberships,. zoning approvals that would be required, additional infrastructure
requirements for the .project, proposed sale price of the land to be sold to Life Time
Fitness, the likelihood of similar facilities being developed in the community, and the.
.precedent or policy of the City regarding purchasing land for private development.
City staff responded to all of the Commissioners' questions.
Motion 06.05 Comms. Brantly/Schubert moved to recommend approval to the
City Council of the Life Time Fitness Business Subsidy Agreement.
Motion carried unanimously.
3. Adjourn
The meeting was adjourned at 6:30 p.m.
Respectfully submitted by: Attested to:
Adam Kienberger,
Economic Development Specialist R. T. Brantly, Secretary
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