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EDA Workshop Minutes 1996.1.24CITY OF OTSEGO EDA WORKSHOP JANUARY 24, 1996 6:30 PM President Larry Fournier called the January 24, 1996 EDA Workshop Meeting to order at 6:30 PM. Roll Call: Larry Fournier, President; Members: Ron Black, Norman F. Freske, Vern Heidner. Suzanne Ackerman arrived at 8:15 PM. Staff: Elaine Beatty, City Clerk/Zoning Administrator; Phyllis Cokley, Director of Business/Finance; Judy Hudson, Deputy Clerk. EDAAC Members; Liz Wilder, LeRoy Lindenfelser, David Sederberg. Member Black motioned to adopt the January 24, 1996 EDA Agenda. Seconded by Member Freske. All in favor. Motion carried. President Fournier stated Economic Development for the Eastern Part of the City is on hold for 1996 because of the 101 construction. He felt Otsego should focus on the area by 94, the Southwestern Area of Otsego. Member Black said there is planning going on in the 101 area for land use. He has had two pieces of information that have come to his attention that something is going on there. He feels things are happening. He sees the purpose of the EDA is to encourage economic development and what is critical to this is the sewer project. His question regarding goals - What can the EDA offer? He isn't sure the EDA has anything to offer now. What is the purpose of the EDA in Otsego's present configuration. The EDA's he has had contact with have money in the bank. A purpose of the EDA is to provide alternative financing sources for projects. Otsego doesn't have that. That is why he raised the question what the EDA can contribute to economic development. Member Freske agreed with Member Black. He stated sewer is not available right now, but when it is, things will happen. He doesn't see the EDA doing anything for several months. Phyllis Cokley said the EDA has the authority to levy. In her past experience, EDA does levy, which involves a marketing plan etc. One City had land donated to them. Another source of funding is TIF. She is familiar with these types of funding sources. In a TIF EDA Workshop Meeting of January 24, 1996, cont a. Page 2. Distt-ict, administration fees can be taken off, like 10°Io, which could be used for other economic sources. To get economic development started, a tax levy could be a source, which can then be used as a loan. Phyllis also suggested to get Otsego on the map, marketing a brochure, get in Real Estate Magazines etc., to make people aware of Otsego. Member Freske agreed with enhancing Otsego's identity. But, he pointed out that TIF has changed so much, it is not as good as it used to be. Also regarding the land along 101, Otsego's name is out there, landowners are just waiting to pursue it. Member Black compared Otsego to other communities, like Rogers. Rogers has been working on their infrastructure for 15 years for their Industrial park and it is just taking off. What does Otsego have to offer? CM Heidner agreed it is difficult to compete with surrounding communities for financing. Otsego's assets are a lot of land, good location and not part of the Metro Area. He would not be in favor of floating a tax levy. Member Black said Communities develop a reputation by being friendly or not friendly. He doesn't mean by hard nose government, but by means of coming in a City Hall and you can get straight answers and same answers apply to all, and not hassled with surprises. User Friendly is where the rules are there and applied fairly to all. Member Black thinks Otsego has been sending mixed signals. Member Heidner has heard that Otsego is not User Friendly. Feed back from developers is they don't like our ordinances, with the biggest problem is that they can't get financing. Otsego doesn't have sewer and water which means less homes can go in an area. Member Freske agreed with this because right now there is a developer who can only put in five homes on a parcel and they probably won't be able to do it because it is cost prohibitive. The Council discussed how large lots are too expensive for developers to develop. If it was viable, Otsego would see more activity. Member Black sees the game plan for all communities as the same -money. What can the Economic Authority do now? Wait until a project comes along and given the nature of project, see if the EDA or EDAAC can do something. His concern is with the EDAAC that has been drifting, spending time working but not sure everyone is focused on the same goal. Member Heidner asked if the Third Industrial Site is dead. The EDA had asked for a general study area, and the EDAAC found a couple of sites. Is the City still interested? Member Black thought it would be a mistake to raise that issue again. A concern is with mixed signals being sent. We should deal in specific plans, and deal with projects as they come in. EDA Workshop Meeting of January 24, 1996, cont'd. Page 3. Member Heidner asked about the status of Long Haul Trucking, if any new buildings are proposed. No one was aware of Long Haul selling any lots. CM Black thinks the air should be cleared with Albertville before pursuing that area. President Fournier thinks the EDA should be open to attract businesses for the I94 area and that should be a goal for 1996. Member Black replied if a request came in, it would be looked at fairly and one of the first steps would be for the EDAAC to look at it, same as the Planning Commission. The purpose of the EDAAC is to look at projects. Member Heidner said he thought the purpose of this meeting was to find direction for the EDA and direct the EDAAC. As far as goals for this year, Otsego doesn't have any money for attracting economic growth. There is a group of people ready for when they start coming in. He felt there are too many things up in the air right now. President Fournier said it would be difficult to say no goals for next year. One goal would be to support projects as they come in. The EDA all agreed that is their goal. Member Black suggested the sewer project. Within the next two (2) months Otsego will have a Feasibility Report. The EDA and EDAAC based on that can study if it is feasible to do a sewer project in Otsego. What kind of costs in terms of recovering - is a REC charge reasonable or not reasonable. LeRoy Lindenfelser, EDAAC Member, said he can appreciate the idea of taking a step back approach and develop an appropriate approach when things happen. Otsego is looking at some big ticket items with 101. But, he encouraged, don't forget the commercial Otsego has now for some recognition. Don't lock into the 101 and 94 corridors only. Don't overlook low impact industries. Member Freske said we want a Third Industrial Park, but not along 101. Member Heidner said the issue is the amount of space, developers can't afford to develop the larger lots because small businesses can't afford them. They can go somewhere else and lease. Rod Bengtson, a resident, didn't view that as a problem, its part of a business expense. Liz Wilder commented that she agreed with no specific goals setting because a lot will depend on Water and Sewer. The City hasn't set its goals for 5, 10, 20 years down the road. She thought that was what the Visioning Meeting would have done. Haven't received any information in regards to population, roads etc. The commissions were to set some goals. Member Freske said the City is going to look at the Comp. Plan first. If sewer comes in then goals can be set. EDA Workshop Meeting of January 24, 1996, cont'd. Page 4. Member Black said we are all saying the same thing, goal setting. We have already decided with respect to economics. One thing is to set a goal and another thing is to abide by that goal. Member Heidner said the problem with long range goals, is sewer and water and without knowing that, we can't plan more than 2 years ahead. We need to know about sewer and its cost. The sewer plans must be known before anything else. Find out a plan of financing. The EDA agreed on the following project for the EDAAC. Sewer Plant Financing 1. Financing, EDA has ability to do things under statutes that a City can't do. Check this concept out, how can it be secured and paid back, same concept as City Hall. 2. Financial feasibility of a sewer plant 3. Should there be a mix between EDA Financing and the City? 4. Waste Treatment Plant, any project that would be owned by the public, how can that project be financed. 5. Private owned plants? 6. Otsego and other communities, can various financing methods be utilized? How would the transactions be structured: _5. Any other EDA Bus'ness Liz Wilder and EDA went over the Resolution establishing a Mission Statement of EDAAC. A. Acquainting themselves with the Comprehensive Plan. EDA - Make sure new members have a copy. B. Initiate, coordinate, and promote industrial, commercial and residential dwelling developments within the City of Otsego. EDA -Since there is no money, nothing can be done right now. C. Establish procedures to encourage effective, orderly communication between all parties involved in the growth of Otsego. EDA - Procedures are laid out in the Zoning Ordinance D. Initiate actions to determine Otsego's needs and to seek appropriate development to fill the need. EDA - Nothing to be done at this time. E. Assist as a group as may be necessary in meetings with developers, builders, investors, financial institutions, government units to include City, County, State and Federal. EDA -There was discussion of the Perlich Development, cost of sewer etc. EDA decided there are a lot of policies to be looked at first. F. Maintain an advisory position on financing available though governmental agencies for present and future development prospects. EDA - This is where the sewer project fits in. EDA Workshop Meeting of January 24, 1996, cont'd. Page 5. G. Meet as a group with new prospects to show promotional material, conduct tours of areas available for development, conduct tours of Otsego. EDA - This comes into play when a project comes in. H. Create and maintain an inventory of buildings and lots available for development. EDA - At one point in time, this was done, but no updating done. Consideration should be given to remove this item. I. Focus on the development of available vacant land within the City in uses consistent with the comprehensive Plan and sensitive to surrounding uses. EDA - Two potential changes to Comp. Plan, nothing to be done other than participation and discussion in Hearings. I Review and comment upon policy matters as requested by the EDA. This may involve occasional joint meetings with the Planning Commission and/or City Council. EDA - This would be on going. K. Review any changes to zoning regulations regarding industrial, commercial and residential areas and recommend specifications to the Planning Commission. EDA - Proposed Sign Ordinance Change. EDAAC should review and comment. Hearing is set for February 7, 1996. L. Have the authority to contact staff specialist for assistance and advice on financing. EDA - Decided that once the Feedlot Committee was done, they should forward it to the EDAAC for comment and review, since this is an economic issue. President Fournier would like a policy that when a development request comes in, it is sent to the EDAAC for comment prior to the Hearing. M. Assist the EDA in making an annual report to the City Council regarding achievements towards fulfillment of economic development programs. EDA - Nothing to report. N. Develop and recommend methods to stimulate positive public interest and economic growth and development. EDA - General O. Develop and recommend feasible methods of financing and other measures of public input into the economic development process. EDA - General. Liz Wilder discussed with the EDA some of the EDAAC's Goals. Within one (1) year. Set benchmarks for commercial or residential development. Have notice of inquiries routed to EDAAC. Discussion: Member Black feels the EDAAC should not be meeting with outsiders. This should be left to the City Staff. EDA Workshop Meeting of January 24, 1996, cont'd. Page 6. Improve communications with other commissions. Discussion: EDA wants this put on a City Council Agenda. Discussed having new members attend other meetings. Open Communications with 101 land owners. Discussion: EDAAC said just for an exchange of ideas and what may be coming. Finish up Intern Project. Discussion: Liz Wilder said contacting businesses that didn't respond. Try to keep a running file on the Home Occupation and Home Extended Businesses, Marketing Plan and Brochures Five (5) Year Goals Making Financial Resources available. Strengthening Otsego's Identify. Open communication with EDA on Economic Issues. Discussion: Member Heidner said EDA meetings are schedule quarterly. Reserve some time during that meeting to meet with EDAAC and get status reports. Phyllis said two workshops were scheduled, one in February and one before budget meeting. Liz Wilder said if EDA wants a quarterly report, they can do a brief one. Member Black said if there is something to be discussed, have it put on agenda for discussion. The EDA said there will be quarterly meetings if needed, otherwise they could be canceled. Elaine Beatty said she had received from Meyer, Stewart and Anderson regarding grant funding for sewer. The EDA said they see too many dangers with this and if they want a second opinion, they would look to the City Engineer. Member Heidner motioned to adjourn. Seconded by Member Ackerman. All in favor. Motion carried. President Larry Fournier Elaine Beatty, City Clerk/Zoning Adm. Recorded by: Judy Hudson, Deputy Clerk