HomeMy WebLinkAbout09.30.21 Minutes
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CITY OF LAKE ELMO
ECONOMIC DEVELOPMENT AUTHORITY MINUTES
September 30, 2021
Call to Order/Roll Call
Vice President Gaertner called the meeting to order at 6:01 P.M.
PRESENT: Mark Gaertner, Linda Larson, Jeff Holtz, Charles Cadenhead, and Tom Triplett.
ABSENT: Paul Ryberg
Staff Present: City Administrator Handt
Approval of August 26, 2021 Minutes:
Motion by Cadenhead, seconded by Holtz to approve the August 26, 2021 minutes. Motion passed
4-0-1 with Larson abstaining.
NorthPoint Development Intro
Brent Miles, co-owner and co-founder of NorthPoint Development shared details about the
proposed project on Ideal Ave/CSAH 14. No tenant is known at this time. The large building will
have cross docks and the other three are single load. When the project is fully built out in 4-5 years
it’s expected to bring at least 560 jobs. Jobs in the large building would expected to pay $15-21 per
hour. Those in the smaller buildings may have some positions with annual salaries of $50,000-
60,000. He noted they typically work with equity partners such as Northwestern Mutual or New
York Life. With the potential project in Cottage Grove, they would expect to have full time staff for
property maintenance. The reason they are asking for TIF is due to the increased price of steel
from $4 to $17.80. NorthPoint is open to a look back provision in the TIF agreement –if they do
better than thought, wouldn’t take TIF funds. Also a look back provision for the jobs per building.
Christina Hubacek, NorthPoint Development went over the public infrastructure involved in the
project-sewer and road improvements.
Refunding of the 2018A Bonds with Proceeds from the 2021A Bonds and lease termination-
Resolution 2021-001
In 2018, the EDA had to issue bonds for the purchase of the Brookfield building since tenants
remained in the building. Handt explained the resolution would prepay the bonds used to purchase
the Brookfield building with the new bonds issued this year for the new city center. The resolution
also would terminate the lease between the city and EDA for the Brookfield building. Motion by
Triplett, seconded by Larson to approve Resolution No 2021-001 A Resolution Providing for the
Redemption of Certain Outstanding Taxable Public Project Lease Revenue and Limited Tax Bonds,
Series 2018A, and Authorizing Execution of Related Documents. Motion passed 5-0.
Economic Development Draft Plan
Chris Eng, Washington County Economic Development Director the latest draft of the EDA’s 2021-
2023 Work Plan. Motion by Holtz, seconded by Gaertner to recommend the 2021-2023 Lake Elmo
Economic Development Work Plan to the City Council. Motion passed 5-0.
Business Subsidy Policy
Handt noted that the council had directed the EDA to work on a business subsidy policy at their
September 14th work session and presented examples form other communities. The commission
agreed that using Cottage Grove’s policy would be a good starting point, noting they liked starting
with the objectives. Discussion amongst members about how specific to be. It was agreed that the
policy shouldn’t be too specific since it applies to all businesses and situations. Triplett asked about
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adding a provision requiring the city to work with neighboring communities. Holtz noted the
prioritized areas in the Cottage Grove policy. Discussion about what Lake Elmo’s priorities should
be such as tying to the Comprehensive Plan and EDA’s work plan. Discussion about wages occurred.
Handt suggested tying it to something that updates over time (state or federal minimum wage,
federal poverty level, etc.) rather than adopting a specific dollar amount that could become
outdated in a few years. Holtz suggested the state minimum wage. Larson noted with a caveat that
it could never be less than 1.5 times the federal minimum wage. Jay Lindgren, Dorsey Whitney,
counsel for NorthPoint Development, noted that statute requires 90% of the jobs to be 1.5x the
federal minimum wage. He noted while that is the minimum, the commission will need to decide
what the wage requirements are and how many jobs need to meet that requirement. Keith
Gendreau, NorthPoint Development, shared some labor market and wage data they obtained.
There are 44,000 people within 20 minute drive time to the site that could fill these jobs. The
starting wage for warehouse workers (forklift operators) is $16.65/hour. The starting wage for
material handlers is $14-15/hour.
The commission asked if they could have some time to review the Cottage Grove policy. Handt will
send out a copy of the Cottage Grove policy separate from the packet. Commissioners may email
her comments by October 8th. Then Handt will work on updating the draft, consulting an attorney if
necessary, and bring the draft back at the next meeting.
Next Meeting Date/Future Agenda/Reports
The next meeting will be Thursday, October 28th, 2021 at 6pm. The agenda will include the
business subsidy policy.
Adjourn
Meeting adjourned at 7:48 P.M.
Respectfully Submitted,
Kristina Handt