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HomeMy WebLinkAbout05-26-09 City of Lakeville Economic Development Commission Meeting Minutes May 26, 2009 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Starfield, Schubert, Emond, Brantly, Longie, Ex- officio member Mayor Holly Dahl, Ex- officio member City Administrator Steve Mielke, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser. Members Absent: Comms. Smith, Tushie, Vlasak. Others Present: David Olson, Community Economic Development Director; Adam Kienberger, Economic Development Specialist, Daryl Morey, Planning. Director, Allyn Kuennen, Associate Planner, Dan Licht, Northwest Associated Consultants. 1. Call Meeting to Order Chair Matasosky called the meeting to order at 4:30 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve February 24, 2009 Meeting Minutes Motion 09.04 Comms. Schubert/Emond moved to approve the minutes of the February 24, 2009 meeting as presented. Motion carried unanimously. 3. Presentation and Discussion of Proposed Zoning Ordinance Updates David Olson introduced the City's planning consultant, Dan Licht of Northwest Associated Consultants, and provided the EDC with the status of the zoning ordinance update process. Mr. Licht provided the EDC with background information on the zoning ordinance update process and reviewed the packet memo outlining the proposed changes to exterior building finishes within commercial and industrial zoning districts. Mr. Licht showed a PowerPoint presentation citing examples of different types of building finishes and examples of buildings and architectural standards from surrounding communities. Comm. Brantly asked if these proposed changes would impact the downtown design guidelines. Economic Development Commission Meeting Minutes May 26, 2009 Mr. Licht replied that the downtown design guidelines would supersede these proposed ordinance changes. Chair Matasosky and Comm. Starfield asked about how these proposed changes would impact businesses looking to expand. Mr. Licht stated that the proposed changes are not retroactive and would only apply to expansions of more than 50% of the original building. Mr. Licht compared the proposed ordinance changes to other cities in the Metro area and noted that the changes are very similar to what already exists in Eagan and Woodbury. Daryl Morey reviewed the discussions that the Planning Commission had on the proposed ordinance changes. He noted that they unanimously recommended the proposed changes. Mr. Licht discussed the future of development primarily around the 135/CR70 interchange area and noted that as the gateway into Lakeville, it will be important to achieve higher quality development in that area. Allyn Kuennen added that some of the higher quality developments in Lakeville have been achieved only through staff negotiation mainly as part of a planned unit development (PUD) due to the lower quality exterior finish requirements in the existing zoning ordinance. Comm. Emond asked about the cost of brick and the associated labor costs compared to other materials. Chair Matasosky responded that it depends on the type of construction used. It was also noted that a cost comparison of materials was included in the EDC packet. Comm. Emond asked about the existing standards at the 135/CR70 interchange. Steve Mielke responded that in areas such as McStop that have private association requirements, the higher standards would prevail. Chair Matasosky stated that the Chamber of Commerce's position on this issue is to not move forward with it. Mr. Mielke responded that the Chamber of Commerce hasn't seen this presentation yet and that a next step would be for staff to make a presentation to them and allow them to ask questions and comment on it. He added that while the potential cost 2 Economic Development Commission Meeting Minutes May 26, 2009 implications of some of the proposed changes may be difficult, this is a long -term vision for the City. Chair Matasosky added that in this current economic environment this is cost prohibitive to business. There are a number of businesses that wouldn't be here if these requirements were in place when they originally built. Todd Bornhauser added that Lakeville's competition isn't only local, but also surrounding states. Comm. Schubert stated that the EDC's goal is to make Lakeville attractive for businesses to locate here. The commercial and industrial businesses pick up the majority of the tax burden already. Mr. Mielke asked what the major differences for the proposed industrial requirements are compared to what exists in the zoning ordinance today. Mr. Licht responded that currently the ordinance allows for up to 50% metal on an industrial building. In the proposed ordinance metal would no longer be allowed. Chair Matasosky added that natural gray will not be allowed in the proposed ordinance as a base color for masonry materials. Mr. Morey responded that natural gray is not allowed in the existing ordinance. Chair Matasosky stated that the details of what is being proposed needs to be examined to a greater extent. He added that a project such as Ryt -way with an expansion of more than 50% wouldn't be allowed under the proposed changes. Mr. Olson added that prior to the meeting he had spoken with both Comms. Tushie and Smith and conveyed their opinions of agreeing with the Chamber of Commerce on opposing any changes. Comm. Starfield gave an example of a retail building that was empty and that lease space is too expensive. Additional requirements could increase already high rents. Chair Matasosky stated that Lakeville competes with Farmington, Northfield and Lonsdale for industrial projects and that they all allow outdoor storage and metal buildings. Mayor Dahl stated that there is a balance needed in order to get people to want to live in Lakeville. Businesses come to Lakeville because of the demographics. EIFS doesn't age well and tends to cause redevelopment sooner than higher quality building materials. The EDC should look long -term on this issue. 3 Economic Development Commission Meeting Minutes May 26, 2009 Chair Matasosky added that he would like business owners and builders included in these discussions. Businesses in the Airlake Industrial Park wouldn't like it if they were told they couldn't build their buildings today. Ex- officio Member Bornhauser asked what is causing this issue to be looked at. Mr. Licht referred to the bullet points at the beginning of the PowerPoint presentation and to the memorandum included in the EDC packet: The proposed revisions to the exterior building finish standards have been initiated in response to comments expressed by residents during the 1998 Comprehensive Plan, 2000 Zoning Ordinance update and the 2008 Comprehensive Land Use Plan update regarding the quality of new commercial and industrial buildings. Staff also received input from current and past members of the City Council and Planning Commission indicating an increased need for improved exterior building finishes in commercial and industrial areas as well as input from developers and builders with concerns regarding the long term durability of specific building materials such as EIFS that have become common in commercial and industrial construction..." Ex- officio Member Bornhauser asked if there are any records of complaints of the quality of commercial and industrial development in Lakeville. Mr. Licht responded that this is part of a continual reevaluation of the zoning ordinance done in conjunction with the 10 -year Comp. Plan update. Ex- officio Member Bornhauser indicated that he hasn't heard these complaints or concerns and questioned the driving factors behind analyzing this at this time. Mr. Kuennen responded that staff received several verbal comments at the Comp. Plan open houses. Comments were also made as to why Lakeville wasn't getting the quality of development seen in other cities around the Twin Cities. The City currently has no leverage other than the PUD process to encourage higher quality development. Mr. Licht added that with residential development moving south and getting closer to the industrial areas of Lakeville, this is becoming a growing concern for the residents of these new housing developments. Mr. Mielke asked about the current zoning ordinance versus the proposed changes and what the key differences are. Mr. Licht responded and added that the table in the handout could be expanded to show more of this information. 4 Economic Development Commission Meeting Minutes May 26, 2009 Mr. Mielke added that the commercial and industrial requirements are very different and that there is no rush to get this through the City process. More information will be gathered and presented before this moves on to the City Council for a formal decision. Chair Matasosky concurred that more information for both the business community and the Chamber of Commerce would be helpful. Mr. Kuennen noted that as part of the proposed performance standards there is an allowance for a conditional use permit (CUP) to deviate from the requirements. This flexibility isn't included in some of the other cities' current ordinances. Chair Matasosky asked what the process would be for a building such as Wausau Supply if they wanted to double the size of their building. Mr. Licht responded that they would need a CUP for the building addition. Mr. Olson added that Cloverleaf Cold Storage was given a CUP for their expansion because they utilized a metal wall material that exceeded the allowances of the zoning ordinance. The EDC agreed that more information and discussion on this topic would be required for the June meeting before making a recommendation. Mayor Dahl added that the City Council wants to make sure this information is discussed and fully understood by all interested parties. Comm. Emond asked if opinions from the businesses in the industrial park could be gathered. Mr. Mielke suggested an open house format meeting to obtain opinions from interested parties. This is the same type of process used for road projects and other types of planning projects. Comm. Brantly stated that a clear understanding and definition of the language used is the key for the proposed changes. Chair Matasosky added that he would like to understand the process for granting CUPs and what the criteria would be in deciding when they are granted. Mr. Mielke suggested separating the proposed commercial building finish changes from the proposed industrial building finish changes for the upcoming discussions. 5 Economic Development Commission Meeting Minutes May 26, 2009 4. Introduction of New EDC Member Chair Matasosky introduced the newly appointed EDC member Sheila Longie. Introductions were made and Comm. Longie discussed her background and experience. Comm. Longie stated in regards to the proposed zoning ordinance updates, people don't tend to be as concerned about the look of buildings in the industrial park. If anything, maybe some design work could be done around the entrances to the park as not too many people actually drive through the industrial parks that don't work there. Mr. Mielke added that most of the concerns received are regarding the commercial developments in Lakeville. 5. Review of Commercial /Industrial Property Tax Comparisons Mr. Olson gave an update on how commercial and industrial taxes in Lakeville compare to surrounding communities on a hypothetical $1,000,000 building. This in response to the EDC's request for "snapshots" of data regarding business taxes in Lakeville. Mr. Olson added that the Dakota County tax estimator tool is a good resource for exploring tax rates in Dakota County. Comm. Schubert noted that her business has realized a significantly higher value and taxes over the past year. Ex- officio Member Bornhauser mentioned the appeals process and noted that there have been some successes in appealing newly assigned values. Mr. Mielke added that he was surprised how little difference there was between taxing jurisdictions and noted that taxes may not be a defining factor in business location decisions. Ex- officio Member Bornhauser stated that it often isn't just a single factor, but a summation of factors that is attributed to a business's location decision. Mr. Mielke added that in comparing Lakeville to Faribault, Lakeville being unable to use the JOBZ tax program is a major difference in Lakeville being able to be competitive with greater Minnesota communities. 6. Director's Report Mr. Olson reviewed the Director's Report. 6 Economic Development Commission Meeting Minutes May 26, 2009 7. Adjourn The meeting was adjourned at 6:25 p.m. Respectfully submitted by: Attested to: Adam Kiefibergaf, R. T. Brantly, Secreta Economic Development Specialist 7