HomeMy WebLinkAbout5.17.22 EDA Packet
NOTICE OF MEETING
City of Lake Elmo Economic Development Authority
Meeting
3800 Laverne Avenue North
Tuesday, May 17, 2022 6:00 PM
AGENDA
A. Call to Order/Roll Call-Introductions 6:00 p.m.
B. Election of Officers 6:00 p.m.
1. President
2. Vice President
3. Secretary
4. Treasurer
5. Assistant Treasurer
C. Minutes
October 28, 2021 Minutes 6:10p.m.
February 15, 2022 Minutes
D. Business Retention and Expansion Survey Updates 6:15 p.m.
E. 2023 Budget Requests 6:30 p.m.
F. Solar Farm on City Landfill Property 6:45 p.m.
G. Future Agenda Items/Reports 6:50 p.m.
H. Adjourn 6:55 p.m.
The Lake Elmo Economic Development Authority (EDA) is
committed to preserving and enhancing our community by
creating an attractive business climate and listening to
businesses and residents to prepare for the economy of
tomorrow.
STAFF REPORT
DATE: May 17, 2022
REGULAR
AGENDA ITEM: Election of Officers
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND: Per the bylaws of the EDA, some officers of the Authority, such as the President, Vice-President and
Treasurer, shall be members of the board and elected annually. The Secretary and Assistant Treasurer need not be members of the Board.
The officers last elected in April 2021were: President: Paul Ryberg Vice President: Mark Gaertner
Secretary: Kristina Handt Treasurer: Linda Larson Assist. Treas.: Kristina Handt At the February meeting the commission decided to table this item since some members were absent.
ISSUE BEFORE COMMITTEE: Who should be elected to each officer position?
PROPOSAL DETAILS/ANALYSIS: Any members of the EDA may be appointed to any of the officer positions. In addition, it is possible to appoint a non-board member (i.e. staff) to be Secretary and/or Assistant Treasurer.
Current members of the EDA are Charles Cadenhead, Jeff Holtz, Mark Gaertner, Linda Larson, Nina Waldoch, Tony Manzara and Paul Ryberg.
RECOMMENDATIONS: “Motion to appoint ____________ as President.” “Motion to appoint _____________ as Vice President.” “Motion to appoint _______________ as Treasurer.” “Motion to appoint Kristina Handt as Secretary and Assistant Treasurer.” ATTACHMENT:
• Bylaws of the Economic Development Authority of the City of Lake Elmo, Minnesota
Page 1 of 2
CITY OF LAKE ELMO ECONOMIC DEVELOPMENT AUTHORITY MINUTES October 28, 2021
Call to Order/Roll Call Vice President Gaertner called the meeting to order at 6:05 P.M.
PRESENT: Mark Gaertner, Linda Larson, Jeff Holtz, Charles Cadenhead, and Tom Triplett.
ABSENT: Paul Ryberg Staff Present: City Administrator Handt
Approval of September 30, 2021 Minutes: Motion by Triplett, seconded by Larson to approve the September 30, 2021 minutes. Motion passed 5-0. Business Subsidy Policy Handt presented the draft version based upon the Cottage Grove template and feedback from commission and legal. The commission discussed whether more than one objective should be required. They settled on requiring two or more. The priorities in 4.2C were discussed. Since most people think of the Old Village as including the Elmo Station and Civic District, those three were combined into the first priority. The language will also indicate the priorities are for development and redevelopment opportunities. The commission also discussed the number of jobs required, specifically full time benefit jobs. Some felt one job was too low of a threshold. Handt explained just because a business creates on job doesn’t automatically mean they get a subsidy. There was discussion about tying the number of jobs to the amount off the increment as some other cities do. Ultimately, the commission decided to leave it at one FTE to allow for the greatest flexibility but expressed it was unlikely that a subsidy would be provided for just one FTE. The commission discussed the wage floor being set at 200% of State of MN Minimum Wage and kept that language acknowledging that each agreement can be negotiated for more. Commissioner Larson asked about 4.2.C.5 regarding entertainment venues. While it was noted they may bring lower wage jobs and have a greater chance for failure, the commission left it in to allow for flexibility and felt more comfortable with a pay-go approach of funding to minimize risks. Motion by Cadenhead, seconded by Triplett to recommend, as amended, the Lake Elmo Business Subsidy Policy to the City Council for adoption.” Motion passed 5-0.
Business Retention and Expansion Program Handt presented the draft BR&E program Chris Eng drafted and noted we have a list of over 470 business in Lake Elmo. Handt asked how the commission would like to prioritize meeting with businesses. Larson mentioned not doing home based businesses and then prioritizing larger employers. Gaernter shared when he was involved in a BR&E program in Oakdale they targeted the newest businesses first. They also included an EDA member and a Council member in their visits. The list will be revised based upon the feedback and brought to the next meeting where commissioners can divide up the list to plan visits in 2022.
Lake Elmo EDA 2021-2023 Work Plan Handt shared that the work plan was sent back to the EDA by the council over concerns that it was a lot to get completed with limited resources. Handt suggest cutting back on some of the items and
Page 2 of 2
meeting quarterly or waiting to have a work session with the council. The commission reviewed the goals and agreed to keep the BR&E for 2022. Goal two about developing data would be moved to 2023 and goals 3 and 4 would be combined for 2024. The commission also mentioned reviewing the work plan each year even though it was a multi year plan. Handt will update the documents discussed and bring back to the next meeting.
Next Meeting Date/Future Agenda/Reports The next meeting will be Tuesday, February 15, 2022 at 6pm. The agenda will include the BR&E Program and updated work plan.
Adjourn Motion by Larson, seconded by Cadenhead to adjourn. Motion passed. Meeting adjourned at 7:17 P.M. Respectfully Submitted, Kristina Handt
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CITY OF LAKE ELMO ECONOMIC DEVELOPMENT AUTHORITY MINUTES February 15, 2022
Call to Order/Roll Call Mayor Cadenhead called the meeting to order at 6pm.
PRESENT: Jeff Holtz, Charles Cadenhead, Ninna Waldoch and Tony Manzara
ABSENT: Mark Gaertner, Linda Larson, Staff Present: City Administrator Handt
Election of Officers: Item tabled until next meeting due to absence of members. October 28, 2021 Minutes: Item will be added to next agenda due to absence of members. Business Retention and Expansion (BRE) Survey Handt provided an update from the last meeting noting the revised business listings. Chris Eng, Washington County Economic Development Director was present to answer questions and provided the questions for the survey which had been used a couple of years ago in Hugo. Provided clarification that members should try to meet with the owner of the business or a manager when conducting the survey. Manzara noted the options in questions three should list positive actions first. He also asked about getting interns to help. It was noted that takes coordination with a university and could add to the work load. Manzara asked about hiring extra staff then so work doesn’t fall on existing staff. It was noted the council had been discussing adding extra staff in general and this is something the EDA could request at budget time. Holtz asked if the data was public. We will assume its public but should let businesses know they are free to share as much or as little as they are comfortable with. Discussion on further prioritizing the list occurred and consensus was to tackle them on a geographical basis starting in the Old Village. Each member of the EDA should plan to visit 2 businesses each month. Handt will revise the business listings, create the survey form and work with Eng on an introduction to include. Information should be available for commissioners to begin interviews the following week.
Lake Elmo EDA 2022-2024 Work Plan Handt shared the updated work plan as discussed at the last meeting to address Council concerns it was too robust. The new plan shifts the dates a year and focuses on one main goal each year. Motion by Manzara, seconded by Holtz to recommend the 2022-2024 Lake Elmo EDA Work Plan to the City Council. Motion passed.
2022 Meeting Schedule Handt presented the proposed 2022 meeting schedule. Meetings would occur on the third Tuesday at 6pm on a quarterly basis. Manzara asked about having special meetings. Cadenhead noted a special meeting could be called by two members of the board if something came up. Motion by Cadenhead, seconded by Manzara to adopt the 2022 meeting schedule. Motion passed.
Page 2 of 2
Future Agenda/Reports The next agenda will include updates/feedback on the BRE, 2023 budget request and solar farm on city property. Manzara also suggested the EDA look into creating a business incubator. That item will wait as we focus on the work plan items. Handt provided an update that council directed the business subsidy policy to focus on redevelopment, the city may see its first fast food establishment along Hudson Blvd and the East Metro Economic Development Summit is tentatively planned for May 12th.
Adjourn Meeting adjourned at 6:44 P.M. Respectfully Submitted, Kristina Handt
STAFF REPORT
DATE: May 17, 2022
REGULAR
AGENDA ITEM: Business Retention and Expansion Survey Updates
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND: Conducting a Business Retention and Expansion Survey (BRE), has been identified as the top goal for the
EDA for 2022. At the last meeting, the EDA finalized the survey questions and decided to begin by meeting with businesses in the Old Village area.
ISSUE BEFORE COMMITTEE: What feedback do members have from their business visits? PROPOSAL DETAILS/ANALYSIS: As of the writing of this report, I have only gotten two surveys back. Summary of the two responses below:
1. Please tell us about your primary products and services? Food Full service beauty salon
2. How many employees currently work at this location? 2 FT
None-Retail Stations, not employees 3. Is your business currently considering? Expanding at this location with more food items. None of the above 4. Are you currently experiencing any challenges with? n/a Municipal utilities, Private utilities-gas 5. Are there any customers, vendors, service providers or suppliers the city may want to consider visiting
with about possible relocating to Lake Elmo that could compliment your business? Brewery, more retail n/a
6. Is there anything the City or EDA can do to help your business grow and expand? n/a
n/a 7. Are there any priorities you would like to help identify for the City of Lake Elmo or the Lake Elmo EDA to consider as strategic planning action steps?
n/a
Slow down residential development. More new residents equals more kids which equals more schools which equals more school district taxes. I know this is true, I have owned by building since 1980 and know the consequences of out of control development and it is not good for a small
business owner. The huge assessments to fund the main street sewer project have made the profitability of my business pretty bleak. RECOMMENDATIONS: No action required at meeting. Please send me the list of businesses you plan to contact in the next quarter. As a reminder, we set a goal of each commissioner contacting two businesses a month. ATTACHMENT:
• None
STAFF REPORT
DATE: May 17, 2022
REGULAR
AGENDA ITEM: 2023 Budget Request
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
At the last meeting, some commissioners expressed an interest in making a budget request to the city
council for 2023.
ISSUE BEFORE COMMITTEE:
What budget requests would the EDA like to make?
PROPOSAL DETAILS/ANALYSIS:
The EDA has never had a budget in the past. As previously mentioned, the top goal in the EDA work plan
is the BRE. After that, the goals for 2023 were identified as follows:
2. Develop data (including talent availability, business types, demographic data)
Action Step: City staff with assistance from Washington County CDA staff and DEED will
provide community demographic information (including but not limited to: talent availability,
business types, community profile, demographic data).
Action Step: City staff with assistance from the Washington County CDA will explore hiring a
consultant to update/undertake a detailed labor market study and then report back to the EDA
Board.
Action Step: City staff with assistance from the Washington County CDA will explore options
to obtain resident input through a survey and then report back to the EDA Board.
Deliverables: The labor market study and demographic/data study update will begin in 2023 or
sooner contingent on available funding.
I recently learned that the Washington County CDA will be kicking off regional labor market studies the
end of 2022/beginning of 2023. We would fall in the mid-county area, TH 36 to I-94. There is no local
match required to be part of this study. For this reason, I would not recommend seeking any funding from
the city council for the labor market study.
There was also discussion about adding staff. Adding an employee costs about $80,000-110,000 for salary
and benefits depending upon the level of responsibility and expertise. Given that the EDA work is not full
time and the challenges in recruiting and retaining part time staff, I would recommend waiting to add staff
until a reorganization of the planning and building departments occurs to include a community development
director and additional staff for those departments that may allow for the most efficiency in staffing EDA
issues.
Are there other items the commission would like to request funding for?
RECOMMENDATIONS:
“Motion to request $_________ in the 2023 budget for _________.”
ATTACHMENT:
None
STAFF REPORT
DATE: May 17, 2022
REGULAR
AGENDA ITEM: Solar Farm on City Landfill Property
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND: At the February meeting, Commissioner Manzara suggested looking into placing a solar installation on the city property off of Jamaca Ave south of fire station two. He offered to look
into the issue. Attached is an update he provided.
ATTACHMENT:
• Update from Commissioner Manzara
From:Tony Manzara
To:Kristina Handt
Subject:Re: Solar Farm Info for EDA Meeting?
Date:Tuesday, May 10, 2022 6:33:58 PM
Caution: This email originated outside our organization; please use caution.
Hi Kristina,
i have made a start on this initiative, here is what I have learned, we can have a bit
more discussion about this topic at the EDA meeting, and perhaps consider a path
forward:
I have corresponded with Bruce Konewko, and Timothy DenHerder-Thomas
of cooperativeenergyfutures.com
and invited them to make an appointment to view the area. There are of coursemany questions about this possible project:
From Timothy:
We would be happy to talk further about exploring solar on the City of Lake Elmo's landfill site,though I should warn you that there are a number of barriers and extended timelines that would haveto be overcome:
First and foremost, even once we have resolved any technical and economic barriers, XcelEnergy's Interconnection Agreement process is currently an 18-24 month saga. So once we
have a proposed system, which itself could be an extended process for a landfill, it will take along time to get through Xcel.AsI'm sure you are aware, landfills pose some extra technical challenges because you usuallycannot bore soil-anchored racking into them; these differences can raise costs and lower
production because you can rarely optimize designs for the best solar output, so we'd have totake a look at the site and explore the options. Supply chains and pricing for materials are alsonot the best at this point.Aside from the technical and related economic obstacles, it is probably first valuable to verify
that there are no General Obligation bonds on this landfill; or if there are, that there is a clearpath for allowing solar alongside them. Recent research on solar on closed landfills inMinnesota suggests that General obligation bonds are often a barrier to using landfills forsolar, so it might be good to verify whether the Lake Elmo landfill has such bonds and start by
exploring those implications.
I am connecting you with Bruce Konewko, our Solar Projects Manager, who can schedule a time tocheck in with you and identify next steps for exploring possibilities here. (I responded but so far noconnection)
Other Information - needs verification and update
a bit of history as a follow-up regarding solar installation on the western edge of the park. The City purchased the
western portion of the park after the land purchase of Sunfish Lake Park. This parcel was 110 acres and
called Landfill Park. (It is not under the Minnesota Land Trust Agreement.) The City received Federal Land and
Water Conservation Fund and state fund dollars to purchase this acreage and in doing so was required to have it
remain in public outdoor recreation use into perpetuity or properly converted under the terms of the grant program
and project agreement. (The terms: “Any projected use of a portion or all of an assisted site for other purposes
requires prior approval by the Commissioner of Natural Resources. The Commissioner will consider approval onlyif the recipient can demonstrate there is no practical alternative to the proposed conversion and agrees to acquirereplacement lands of at least equal fair market value.”)
In 2010 the Minnesota DNR did a site inspection and was aware that due to the landfill contamination the land was
no longer available for public use. The DNR sent a letter to the City and requested the terms be addressed. Due to
multiple City staff turnover, the City did not address this although the DNR continued to contact the City on it.
With the MPCA clean-up, a large portion of the acreage was permanently removed from public use.
The Landfill Park acreage that remains (and is fenced in) is still suitable for public park use. Around 2018 the City
proposed a strategy to contact the DNR with the argument that the land taken by the MPCA was of net zero market
value. (I don’t know if this occurred or the outcome.) The acreage that remains would still be under the existing
agreement.
have a peaceful day...
tony
On Tue, May 10, 2022 at 5:10 PM Kristina Handt <KHandt@lakeelmo.org> wrote:
Tony,
At the last EDA meeting you mentioned you would come back to the commission with moreinformation about solar farms on city property. Do you have anything I should include inthe packet? I will need it by end of day Wednesday.
Thanks,
Kristina
Kristina Handt
Administrator, City of Lake Elmo
651.747.3905
-- Tony Manzara, President 651-769-7001 cell
Friends of Lake Elmo's Sunfish Lake Park, which operates the Sally Manzara Interpretive Nature Center 651-408-2838
located in Lake Elmo's Sunfish Lake Parkentry point 10,000 Stillwater Lane N, Lake Elmo, MN
Postal address PO Box 241, Lake Elmo MN 55042www.sminc-lake-elmo.org
"On the Plains of Hesitation bleach the bones of countless millions who, at the dawn of Victory, sat down to wait, and waiting, died"
- George W. Cecil