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Home My WebLink About5. Approval of Minutes: October 21, November 05, 18, and December 02, 2003 OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA ADJOURNED REGULAR SESSION OCTOBER 21, 2003 Members Present: Link, Joos, Mars, Helkamp and Chair Lehman. Members Absent: None ."... -~.- Staff Present: Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer; Gregg V oxland, FinanceDirector; Paul Snook, ECQnomic Development "-....,..,-" . ""~"'-".' .... Coorciinator; Jim Thomson, City Attorney; MarkThemig, Facilities and Recreation -':':,~:: bireCtor; Brad Eller, Recreation.Supervisorand Tracy Schaefer, Assistant to the City Administrator. . . -,._.... l.....c . Roll Call: ':".:'-'i,t:,::iBft~~,: ,Chair Lehman called the meeting to order at 7:13p.m. Roll was taken as.noted above~ , II.-:;-' : Approval of the A~enda: Joos/Li11kl11ovedto approve the agenda as written. Motion carried 5-0. "-- I~I.._Jointl\:1eetiI!g with City Council: --".."'--. -~ ---<. 3.a.. Public Hearing on the Amended Business Subsidy Policy; Resolution No. 2003-6, Adopting Business Subsidy Policy. . Chair Lehman opened the public hearing on the Business Subsidy Policy for the Economic Development Authority (EDA) meeting. Mr. Snook reported the EDA and the City CounciLwereasked to adopt the amended,~. '.Business Subsidy Policy after the public hel:lXiJ}Kwasclosed. Mr. Snook noted at thee, October?, 2003. meeting this policy was reviewed based on the changes to the Minnesot{- :,_~~:._c_ c__ C-::'C Business Subsidy Law. Direction was given that theEDAC review the amended policy, " '.~ CC and they make a recommendation to the EDAlCityCouncil regarding the wage floor and changes to section four of the amended Business Subsidy Policy. Mr. Snook stated under the changes to the Business Subsidy Act a specific wage floor needed to be set. Mr. Snook stated at the last joint meeting between the EDAlCity Council there was a split as to what this specific wage floor should be. Mr. Snook stated that at the October 14, 2003 meeting of the EDAC, they decided to recommend that the wage floor be set at the federal minimum wage ($5.15 per hour) with supporting language added to that section. Mr. Snook stated that the EDAC was of the opinion that as much flexibility as possible, regarding the wage floor, needed to be incorporated in the amended Business Subsidy Policy. Mr. Snook noted that the EDAC made some other recommendations. These recommendations were: 1.) Section 4 A regarding what business subsidy applications would require a public hearing [their recommendation was Official Proceedings of the October 21, 2003 Economic Development Authority Page -2- that every business subsidy over $25,000 and every business loan and/or loan guarantee over $75,000 would require a public hearing]. Mr. Snook noted this would make the City of Shakopee' s Business Subsidy Policy more stringentihanthe law; 2) Section 4 D regarding meeting goals [their recommendations was that the two year threshold should remain, thus a business had two years to complete its goals]; and 3) Section 4 E regarding m _...._.._ extension time for compliance of the goals [their recommendation here was there may be -,_....- an extension up to one year for job and wage goals compliance]. --." '" --~.. -.- , Mr. Snookexplairi~dthe, difference in the public hearings required by state law and what . the City of Shakopeewould be requiringforpu.bli~,.hearings withJhe alIlended Business .'-'- ,..... Subsidy Policy. Mr;Snook pointed out the !iefihi:ti6nofwhat abusfnessisubsidy _....-...,. cOIlsisted of'.J\1r' Snookals9state4 th?tiftl1eqty ever wanted topl3f1:icipa1e in an):' public financing an amended Business Subsidy Plan needed to be adopted with certain "'.""~.~ criteria. -;._,__.;,.:,;-~j{i.4f&t'\. .~'.~-.:;':;...:.. .-.' .--- ..-,.,,-.-,-- -". There was significant discussion onthe federal minimum wage being set as the wage floor. It was felt that a livable wage needed tobeset,be.~use thaHVl:lSwhat the BusiIless ',' . .,_ Subsidy Policy waS stating, and the federal minimum wage($5.15}~was not considered a livable w.age by the commissioners. According to the EDAC, the federal minimum wage ""as not set in concrete; it was just a start of wl1~ttl1~ _yv?g~s could_i>"~.Mr~:Snoukl1oted - .-thatbeforethechanges to theState Business Subsidy Act there was no specific wage floor set; there were no wages or job goals setat all. .. It was noted that just paying the minimum wagewas not an automatic to get a business . subsidy there were other criteria that needed to be met. _,T..... ,;. :rsa:li,~~JV1ars:cal1ed,forpublic testimony onthe.amended Busin<::.ss Subsidy Policy . John Schmitt, 1015 South MainStreet,approachedthe'podium with some'questions'---'-- . regarding the amended business subsidy policy ...'There-Were' some22 items that were not. considered subsidies I.e. the fixing up of buildings downtown using the Small Cities granf money. Mr. John Schmitt wanted to know when jobs and wages would not be considered a goaL Mr. Mars addressed this question (tax capacity). Mr. McNeill, City Administrator~ also addressed this question. Mr. Schmitt was concerned about keeping the flexibility; he thought some of this flexibility over encouraged individuals. He was uncomfortable with the federal minimum wage being used as the wage floor. Mr. Schmitt also questioned recovering the money used for the business subsidy that the City had already granted to the business if the goals were not met eventually. The City Attorney, Jim Thomson, noted that the how to recover this money (investment) could be written into an agreement between the particular business and the City. Official Proceedings of the October 21, 2003 Economic Development Authority Page -3- Gary Sorenson, 4915 Eagle Creek Boulevard, approached the podium with a couple of issues. He stated that he thought the City had set their goals to low to many times. He thought the federal minimum wage was very low. Joos/Helkamp moved to the close the public hearing for the City Council. Motion carried 5,.0. . n~._._"_ Joos/Link moved to close the public hearing'for the EDA. Motion carried 5-0. -.'.......--- Joos.@~lJ<al1}p..offered~J)A~e,sQ~uti(m No. 2003-6, A Resolution Adopting A Business, ".S,lJ9siQ5{'Po!icy, and n,1Qv:ed.:lts, adoption. .' - .,,'.,"" ", '=Mr:Mars statedthath.e:dichnot"believe-$5.1S' per hour was a. livable wage.. He woll1d'like " , ;.,i@t@ see thj~.Wage highednJheBusiness Subsidy Policy ($11.00/$12.00 per. hour). ~",,;,'-''''~ .~.~ -., ~._. Mr. JooS:stated he agreedwith:the EDAC and staff to keep the wage at the federal , ., .,." minimum wagehecaus~inJhe:;el1dthe wage was at..the discretion,of the .,CouJ1cilbutthis wage provided flexibilit)r:andgave the City and the applicant a. place,to startand'who , kne.w what the economictimes were going to be when an application was brought forward. C01.1llciJs needed theJlexibilitY....The contracts and the agreements between the applicant and the City needed to be done and then everybody would'Rnow ahead; of time. what was go!ng to. happel1~ -. -.."'.--.- Mr.':Helkamp wasofthe:.opinion thatthefederal minimum wage was nota livable wage. He wouldJike to see 300% ofthefed~ral minimum wage be the wage floor. '"',........' , ':'o.;Mr;hinkfeltithere neededtoa.minimum wage of at least $15;00 perho~,~~ ,Mr."Lehman':thought $15.00 might be.,a;little 'high but $5.15 was not reasonable. Mr. SIlooKdi.dUbfethatthis:poJicy. could be amended inthe future if that was found to be necessary.. Mars/Lehmanmoved to amend EDAResolution No. 2003-6 statingthatthe wage floor be set at a minimum average of $12.00 per hour. Mr. Lehman stated that if the wage was at the federal minimum wage there needed to be something else that the business was bringing the City because it was not the jobs. If the application was being looked at only for jobs then the wage needed to be set higher. Mr. Helkamp would like to see the wage set at a percentage of the federal minimum wage rather than a dollar amount. He would also like to add the sentence that stated the wages are exclusive of benefits. Official Proceedings of the October 21,2003 Economic Development Authority Page -4- Mr. Mars stated that he was fine with turning the $12.00 an hour into a percentage of the federal minimum wage ($5.15) with that wage figure being exclusive of benefits. Mr. McNeill noted that $12.00 an hour would be 233% of the federal minimum wage. It was decided that the percentage of 233 would be setand that wage would be exclusive.. of benefits. ..---' . Mr. Helkamp suggesteda friendly amendme1l6vhere the wage wassetat 275 percent of the federal minim1ll11 wage. Mr. Mars did not accept this, friendlyamenqD,1.el1t,~,fIeE preferred th& percentage of 233 p"ercent ofthefederaliminimum wage;,~~::"..,-,.., :;-... ...~. ~ .........-- .' '" .' .--....-----.-.. - -. ...,'.... .,'-- .,..,.,-..', Mr. Link. still wantedthewagetobea'rriinimUln(lf $15.00 perbour:~;-- ..,.,,-.....". The amended motion failed 2-JwithMr. Helkamp,Mr. JQosand Mr.-Linl(9i~~enting. _.-._~..,.; ';Themain motion with no changesbutwith the recommendations from theED.AG<Witha .' ......>?" ". ' '.. Wage floor at theft?cdexaLminin:nunwage waSllOW voted on. Motion-failed 4;..1:witltMr. ;:~,t":c. ~",' _ . Mars, Mr. Link, Mr. Helkamp all,!t~. Lehman dissenting. _':.>,.-::4~..:- Mr. Mars stated thathefelt theEDACdidagood job on 4a,4d, and 4.e. :':'''::,~i;~:'' Helkamp/Link offered EDA Resolution No.. 2003-7, A Resolution AdoptingA Business ..... ... . Subsidy Policy and movedits.,adoption,withthe change that thejobstnustpayatleast..:..,.;o:;;;;.;..:. 300% of the federal mil}illlJunwage exclusive of benefits. ",-. "'-'-~ .' Mr.Mars'moved.a.friendlY;:~~l!lirnentthat the jobs must pay 275%.offederahminimum. '.- _.~. wage exclusive of benefits. Mr. Helkamp(motion maker) and Mr. Link(secoIldei-)" c,,;,;;,:' " accepted this friendly amendment . Motion carried 3-2 with Mr. Joosand Mr. LellIhim dissenting. This wasfortheEDA. Helkamp/Mars offered Resolution 5964, A Resolution Adopting ABusiness Subsidy Policy, and moved its adoption including the amendment made to EDA Resolution No. 2003-7. Motion carried 3-2 with Mr. Joos and Mr. Lehman dissenting. This was for the City Council. 3.b. Resolution No. 2003-7, Adopting Tax Increment Financing Policy (The TIF policy is not subject to a public hearing). Mr. Mars noted that the Resolution No. 2003-7 had been changed to 2003-8. Official Proceedings Qf the OctQber 21, 2003 ECQnQmic DevelQpment AuthQrity Page -5- Mr. SnoQk reported Qn adopting the Tax Increment Financing Policy, (TIF) which was part of the City's Business Subsidy Policy that was originally adopted in 1999. Mr. Snook stated that the new Business Subsidy PQlicy WQuld not include the TIF policy. This PQlicy would be separate; state law did nQt require a TIF policy. The TIF PQlicy was separate frQm the Business Subsidy PQlicy because it CQuld be used for purpQses besides attracting-bu~inesses, i.e. sQilsc:orrectiQngr red~velopment. Mr. SnQQk noted there were._ a few non-substantive changes in the TIF PQlicy but nQt significant enough changes that a public hearing WQuld be required. The most significant change was taking the TIF out of '-~." ~.-"~. the~13usinessSub~idy POliCYl;U1d lUinQ~changes to. satisfying the state law; MaIC~(Helkawpoffered€J)Ag~~8'1H.~.6#~No, 2003..8"AR~sQlutionAdopting A.Tax,. Increment Financil1gPQIicy, andl1loyed"its adQPtion~:MotiQn carded 5-0. Other Business: ".",;,'i~ ' ". ...;~,,-:..-..ri;,"r;; There was nl) otl1erqu~~l}es.s.~ d._ ',:~Adfourn: q>:' . "'i, ',' "~: ,.,"'" """"",,""""",',"'H' JooslHelkampmQved toadjoul,11the;-me~fing; T,h~m~~ting,adjQllp1.edHat.8:18 p.m. MotiQn carried 5-0. - ;"..ri~J.~ - Judith S. Cox, ,--."" EDA Secretary ':' .~ .;. ; "':l:-"" -:' ~"'1.:t;'~iJ' ,;~ . ,':;:':::f:~' .,-.-.- . .'... - OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE,NfiNNESOTA REGULAR SESSION NOVEMBER 5, 2003 Members Present: Link, Joos, Mars, Helkamp and Chair Lehman. Members Absent: None Staff Present: Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer; Gregg V oxland, Finance Director; Paula Callies, Acting City Attorney and . Tracy Schaefer, Assistant to the CitY Administrator. Also present: Mayor-elect John Schmitt. I. Roll Calh';;;;;;':;"Tu ,--~, . ....,. ", ,--.-"~--'. "",.ChairLehmancalledthe.meetjng to order at 1:21,p'1ll.. Roll~a~ takePJ.lsnot~(:t ~QQY~.,.._.. II.' .;;;"Approvalof; the Agenda: - ,.,.... "" ,......~,;..'JooslMar.s~moved.to.approvethe,agenda 'a$,WtitteD!+Mpt~gn carried,5;.0. '. ---. , III~ Approval.of the Consent Agenda: a. Approval of Minutes. Actionwas taken under the Consent Agenda. .'-'. LehmanlJoos moved to add the following items to the Consent Agenda. Item NO.3.a Approvatofthe Minutes for.September2,2003 and Item No.4 Approval of the bills. The following items were on the Consent Agenda. ,..... .,_____.,Jtem'#3~RAP.Proval oHhe'MintitesforSeptembef2" 2003. "",. "~tA~~'C:Itetif# 4A-pprovalof1.he"bills"iiithe arilOuntof $2,705.16. ~"c___,,,C:-' ;;c';;~;:;;'"E~hhifu1tj&{j~Iho.yed to approve the Consent Agenda as modHie~&."Motion carried 5-0. IV. Financial: a. Approval of the Bills. Action was taken under the Consent Agenda. V. Consideration of Special Meeting for December 9, 2003. Mr. McNeill, City Administrator, noted there was a number of unresolved issues for the City Council and Economic Development Authority (ED A) to discuss relating to the proposals by Ryan Companies for the property located west of Dean Lake. Mr. McNeill suggested that a separate meeting be set just to deal with the several issues regarding Ryan Companies. He recommended the date of Tuesday, December 9,2003 for the special meeting. Official Proceedings of the November 5, 2003 Economic Development Authority Page -2- Mars/Joos moved to hold a special meeting for the EDA on December 9, 2003 at 6:00 p.m. regarding the issues with Ryan Companies. Motion carried 5-0. VI. Other Business: VII. Ad.iourn: He1kamp/Joos moved to adjourn to Tuesday, November 18,2003. The meeting adjourned at 7:24 p.m. Motion carried 5-0. .CO~j.C+ Judith S.'Cox, .~ . u,. . . ...., . '" '. .. - -,..---,--- . -- '.- "gR~'~~~retary" . '.,. ...~>-:;;; .'" ""., " ...,Q~gl~!ift~9J:lllld :~~o?qr~FB:gSecr~tary - ". ,.,..,_.~,-~~--. "....-.-..-..".-.. -' .., ~--_. "~'._.' ',.. ._,-, ~--"'.'~'~'~""'.""~ 'u ~~ . -.... OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SEUU{OPEE,M~ESOTA ADJOURNED REGULAR SESSION NOVEMBER 18, 2003 Members Present: Link, Joos, Mars, Helkamp and Chair Lehman. Members Absent: None --....,.. Staff Present: Mark McNeill, City Administrator; Judith S.Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City -' .,"""... Engineer; Gregg Voxland, Finance Director; Jim Thompson, City Attorney; Mark .,..".,...,. Themig, f8:~mtiesand Recreation Director and Tracy Schaefer, Assistant to the City Administratol\.:A1so Present: Mayor:-electJoInl.:Sclunitf and Council merii&er=elecr: . ~~..,~ Steve Menden. ,:,,:,;:"::-:.::!'--...;:-~ I. Roll Calk~- ..' .~L""'._._ '--'- .=".,.=-".......~. ,. __. _v Chair Lehman called the meeting to order at 7:15 p.m. Roll was taken as noted above. _.,,~. ~ _._.~ II~. Approvalo( the A2enda: ."-'".- Nfars/Link~movedto approve the agenda as written. IYIotIon carded 5-0. .. .'~_ _._._m_____' n'_"" III. 0 _ ApprovaLoUhe ConsentA2enda: a. Approval of Minutes. The followil1g item was on the Consent Agenda. Item #3.a Approval of the Minutes for October 7, 2003. -."'-' Helkamp/Link moved to approve the Consent Agenda as modified. Motion carried 5-0. ;.;. ..~,.. IV:~: - Financial: - o_--'---a:: Approval of the Bills - none. ""-,."., . - .~--_...... ~.~-. -_.- Vo' ~.:~;{)th-erBusiness: There was no other business. VI. Adjourn: Helkamp/Link moved to adjourn to Tuesday, December 2,2003. The meeting adjourned at 7:17 p.m. Motion carried 5-0. ~o1 ~D~creWy Carole Hedlund, Recording Secretary OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE,M~SOTA REGULAR SESSION DECEMBER 02, 2003 Members Present: Link, Joos, Mars, Helkamp and Chair Lehman. Members Absent: None Staff Present: Mark McNeill, City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer; Gregg V oxland, Finance Director; Jim Thompson, City Attorney; Mark Themig, Facilities and Recreation Director, Terry Stang, Fire Chief; and Dan Hughes, Police Chief. Also Present: Mayor-Elect John Schmitt and Council member-Elect Steve Menden. I. Roll Call: Chair Lehman called the meeting to order at 7:09 p.m. Roll was taken as noted above. II. Approval of the A2enda: Mars/Link moved to approve the agenda as written. Motion carried 5-0. III. Approval of the Consent Agenda: a. Approval of Minutes. The following item was on the Consent Agenda. Item #3.a Approval of the Minutes. There were none. Helkamp/Link moved to approve the Consent Agenda as modified. Motion carried 5-0. IV. Financial: a. Approval of the Bills. Helkamp/Link moved to approve the bills in the amount of $3,664.72. (Motion carried under the Consent Agenda.) V. Other Business: There was no other business. VI. Ad.iourn: Mars/Helkamp moved to adjourn the meeting. The meeting adjourned at 7:10 p.m. Motion carried 5-0. a~~~2~ Carole Hedlund EDA Secretary Recording Secretary