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HomeMy WebLinkAbout06-30-09Members Present: Comms. Matasosky, Smith, Tushie, Vlasak, Erickson, 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: None. Others Present: David Olson, Community Economic Development Director; Adam Kienberger, Economic Development Specialist, Daryl Morey, Planning Director, Allyn Kuennen, Associate Planner. 1. Call Meeting to Order City of Lakeville Economic Development Commission Meeting Minutes June 30, 2009 Marion Conference Room, City Hall Chair Matasosky called the meeting to order at 5:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve May 26, 2009 Meeting Minutes Motion 09.05 Comms. Erickson /Emond moved to approve the minutes of the May 26, 2009 meeting as presented. Motion carried unanimously. 3. Continued Discussion of Proposed Zoning Ordinance Updates Daryl Morey provided the EDC with an overview of the process and noted that at the last EDC meeting the EDC had requested clarification on several aspects of the proposed exterior building finish standards. Mr. Morey added that staff has prepared a comparison showing how the existing building finish standards compare to the proposed standards. Allyn Kuennen reviewed the EDC memo outlining a detailed comparison between the existing and proposed ordinance standards. David Olson noted that in the past conditional use permits have been granted in certain instances to businesses such as Alcorn Beverage and Cloverleaf Cold Storage to deviate from the existing zoning ordinance requirement for 50% masonry on building facades facing a public street. Economic Development Commission Meeting Minutes June 30, 2009 Comm. Erickson asked how the proposed zoning ordinance compared with surrounding cities' requirements. Mr. Kuennen reviewed a comparison chart provided to the EDC at their May meeting, noting the similarities in how the exterior finish ordinances were structured. Comm. Tushie added that most cities have a gradation of acceptable materials similar to the proposed zoning ordinance. The difference between communities typically is in the percentages allowed of specific materials. He noted that this is a very common practice. Comm. Starfield asked if a building owner were to sell a building, would they have to bring the building up to the proposed exterior finish standards. Mr. Kuennen responded that they would not. The proposed ordinance only applies to new buildings or expansions of more than 50 Comm. Tushie noted that integrally coloring panels for large buildings tend to be difficult. The process by which these panels are constructed make it difficult to maintain a consistent finish color. Mr. Olson responded that exposed aggregate panels meet the requirements listed in the proposed zoning ordinance for this reason. Comm. Tushie suggested incorporating a provision for utilizing stained concrete in addition to integral color as an option. Stained concrete tends to be good for around 15 years and doesn't flake or need to be scraped like paint. A requirement for restaining the concrete within a certain timeframe could be included in the ordinance. He added that a requirement should be included for colored mortar where concrete block construction is used. Steve Mielke commented that it is difficult to enforce building maintenance requirements. Part of the idea of the proposed ordinance is to provide no or low maintenance requirements so the City doesn't run into as many property maintenance issues. Comm. Tushie noted that EIFS is listed as an acceptable material in the proposed zoning ordinance. Most cities allow this only as "trim or less than approximately 5% of the total exterior building materials. Chair Matasosky added that EIFS also causes problems with insurability. Comm. Tushie further added that stucco is a more appropriate material than EIFS. A product such as Quik -Brik should also be considered as an allowable material as it is approximately half the cost of traditional brick and looks nicer than rock -faced block. 2 Economic Development Commission Meeting Minutes June 30, 2009 Mr. Mielke added that it could possibly be considered a "Grade B" material. Comm. Tushie asked about the proposed 65% requirement of Grade A materials in the industrial districts. That seems like a lot for an industrial building. Chair Matasosky agreed that 65% of Grade A materials in the industrial zoning districts seemed high. Comm. Smith noted that there are different thresholds for the commercial and industrial districts. Mr. Kuennen clarified that in the industrial districts, the proposed ordinance calls for 65% of Grade A or Grade B materials. Commercial districts are held to a higher standard than the industrial districts in the proposed ordinance. Comm. Tushie stated that he just reviewed architectural standards with the City of Eagan and they call for higher standards to be utilized on portions of buildings that are visible for the public right -of -way. Mr. Kuennen concluded his review of the EDC memo and chart comparing the existing ordinance to the proposed ordinance. Comm. Tushie noted that the requirement of three different types of Grade A materials is a good idea and is appropriate to break up the wall of new commercial buildings. Mr. Kuennen noted the steps for the public review process outlined in the EDC memo and added that the EDC has been added to the Lakeville website's list sery to receive updates on this issue as they are published. Mr. Mielke added that some of the ideas addressed at the meeting would be incorporated into a revised ordinance draft that will continue through the public input process. This issue will be brought back to the EDC at a future meeting for a formal recommendation to the City Council. Comm. Starfield asked about the costs to new businesses to meet these proposed changes. Are there other benefits besides aesthetics such as energy efficiency? Chair Matasosky responded that there are Tots of variables and that it is hard to quantify potential savings. Comm. Tushie added that what is being proposed is common in most cities. The importance of this type of ordinance is to protect themselves from undesirable buildings that may be built at the very minimum allowed under current regulations. 3 Economic Development Commission Meeting Minutes June 30, 2009 Mr. Olson also noted that in the case of a unique building like the former Copper Bleu restaurant, a conditional use permit can be granted to allow buildings that may not meet the exact requirements of the proposed ordinance, but may fit the intent of the ordinance. Comm. Starfield asked if this would potentially put Lakeville at a disadvantage to cities such as Lonsdale, Farmington, and New Prague who are often in competition with Lakeville for businesses. The struggle is balancing the desire for quality buildings with attracting new businesses the City doesn't want to lose out on new jobs. Comm. Tushie responded that for a building typically larger than 40,000 square feet, the cost difference to go from a metal building to block is minimal due to construction requirements. The main cost difference will be in the price of land. Chair Matasosky noted that Lakeville doesn't make some site selection lists because we don't allow metal buildings. If metal buildings were allowed in the zoning ordinance, we would look more desirable to site selectors. He sited an example where sometimes businesses think they want a metal building due to cost, but when they actually sit down and run the numbers, a block or other type of building construction is often cheaper or more desirable. Comm. Smith asked why the EDC would support building standards that would limit which businesses can locate here. Comm. Tushie asked the group if we really want metal in our industrial park. This issue needs to be looked at long term. We don't want to approve buildings that would be immediately obsolete. Mr. Mielke asked if there is some sort of middle ground; certain types of metal that would be acceptable. Comm. Tushie suggested that maybe only a certain portion of a building could utilize metal (i.e. only the top X feet of a new building). Comm. Starfield stated that the proposed ordinance sounds so absolute. Shouldn't an industrial park look like an industrial park? Comm. Tushie responded that there are some pretty bad examples out there of industrial buildings in cities that don't have the types of requirements that are being proposed. Ex- officio Member Bornhauser stated that anything that prevents business growth in Lakeville is not a good idea. 4 Economic Development Commission Meeting Minutes June 30, 2009 Comm. Tushie responded that building design standards are needed. Comm. Brantly added that utility in an industrial park should take precedent over looks except where visible to the public. Mr. Mielke concluded that where applicable, middle ground will be looked for on this issue. Chair Matasosky added that the business community needs to be heard from on this issue. 4. Review and Provide Recommendation on Proposed Business Subsidy for ImageTrend Chair Matasosky indicated he would be abstaining from the discussion and the subsequent vote as his company is currently working with ImageTrend on this proposed project. Mr. Olson introduced Mike McBrady, President of ImageTrend and Bruce Rydeen, broker with Cerron Commercial Properties representing ImageTrend. Mr. McBrady described his business and reviewed the history of starting and growing his business in Lakeville. ImageTrend is a software development company that started in Lakeville in 1998 with two employees and currently has over 100 full time salaried employees in their 33,000 square foot building. ImageTrend is continuing to grow its business and create jobs at their facility in Lakeville and anticipates the need for additional space to house these employees in the future. Comm. Tushie stated that he is happy ImageTrend is located in Lakeville and would like to see them continue to grow here. Mr. Olson reviewed the EDC memo regarding the proposed property sale and business subsidy. Comm. Emond inquired about the status of any assessments on the vacant property. Mr. Olson responded that the site is currently in a TIF district and is fully serviced. He added that private ownership of this parcel will generate taxes and benefit the TIF district and the overall property tax base when the TIF district expires. Comm. Brantly asked about a net increase in the number of jobs as a result of this business subsidy. 5 Economic Development Commission Meeting Minutes June 30, 2009 Mr. Olson responded that there will be a net job increase of a minimum of 21 jobs. The City will document the current number of full time equivalent employees at ImageTrend and use that number to track the job creation goal in the business subsidy agreement. Mr. McBrady stated that ImageTrend is a fiscally conservative company and that their employees value stability. They added 20 jobs just this year and are continuing to grow. Motion 09.06 Comms. Smith /Starfield moved to recommend to the City Council approving the proposed business subsidy for a sale of City -owned property to ImageTrend to facilitate building expansions totaling 50,000 square feet and the creation of a minimum of 21 new full time jobs. Motion carried unanimously. Chair Matasosky abstained. 5. Business Retention Visits Summary Adam Kienberger gave a report on the business visit with Menasha Packaging conducted by Comm. Starfield and Mayor Dahl. Mr. Kienberger reviewed the EDC memo and noted that overall Menasha is satisfied with the Lakeville business environment and encouraged the City to continue focusing on infrastructure and making Lakeville a desirable place for people to move to. Comm. Longie inquired as to why Imperial Plastics turned down a recent business visit request. Chair Matasosky responded that he and the Mayor had met with Imperial Plastics last fall. Mr. Kienberger added that Imperial Plastics mentioned in their response that they are satisfied with how they have been treated in Lakeville, but did express a concern for traffic safety on Hamburg Avenue. Comm. Starfield added that Menasha Packaging encourages their employees to further their education through a tuition reimbursement program. Ex- officio Member Bornhauser stated that the Chamber of Commerce will provide the City with a list of businesses they have recently met with as a part of the Grow Minnesota program so that efforts aren't being duplicated. Comm. Longie suggested that a business visit be scheduled with Custom Stud. 6 Economic Development Commission Meeting Minutes June 30, 2009 Comm. Starfield and Mayor Dahl added that during the visit with Menasha they mentioned that business seems to have stabilized and that packaging is a good economic health indicator. Chair Matasosky concluded the discussion by stating that the City is much more approachable because of this business visit program. 6. Director's Report Mr. Olson reviewed the Director's Report. 7. Adjourn The meeting was adjourned at 6:50 p.m. Respectfully submitted by: Adam ienbs •er, Economic Development Specialist Attested to: R. T. Brantly, Secr 7