HomeMy WebLinkAbout3. Approval of Minutes: May 01, and May 15, 2012 OFFICIAL PROCEEDINGS OF THE
ECONOMIC DEVEI.OPMII�IT AUTHORTTY
SHAKOPEE, MINNESOTA
Adj. Regular Session
May 1, 2012
Members Present: President Steve Clay, Commissioners Jay Whiting, Pamela Punt,
Matt Lehman and Brad Tabke.
Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City
Administrator; R. Michael Leek, Community Development Director;
Bruce Loney, Public Worlcs/Engineer; Jim Thomson, City Attorney
and Julie Linnihan, Finance Director/City Clerk
1. Roll Call
President Clay called the meeting to order and roll was noted as above.
2. Joint CouncillEDA Public Hearing on Consideration of Proposed Tax Increment
Financing (TIF) Plan for TIF District No. 15 (Trident L.L.C. senior housing project)
and Contract for Private Development (CPD) between the City of Shakopee and
Trident Development, L.L.C.
Tabke/Lehman moved to open the public hearing. Motion carried 5-0.
Leek stated that because the Trident representatives are unable to attend the meeting, the
Council and EDA are asked to take testimony from anyone that may be in attendance for
this issue and then continue the public hearing to May 15, 2012.
Leek said the project is an 80-unit, approximately 84,000 square foot, senior rental
housing facility. The City is asked to designate a housing TIF district with a inaximum
term of twenty-five (25) years. Tax increment over the term of the district is projected to
be about $5.45 inillion. Maximum increment available for the project will be $1 million.
As a result of the approval of the TIF assistance, the project would designate 20% (16) of
the units for persons at 50% of the median income in the county.
Clay asked if there was anyone in the audience that wished to speak at the public hearing.
No one responded.
Whiting/Punt moved to continue the public hearing to May 15, 2012. Motion carried 5-0.
3 Adjourn.
Lehman/Punt moved to adjourn to Tuesday, May 15, 2012 at 7:00 P.M. Motion
carried 5-0. %
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�ulie L���/�
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Finance Director/City Clerk
Kim Weckman
Recording Secretary
OFFICIAL PROCEEDINGS OF THE
ECONONIIC DEUELOPMII�IT
AUTHORITY SHAKOPEE,
MINNESOTA
Regular Session
May 15, 2012
Members Present: President Steve Clay, Commissioners Jay Whiting, Pamela Punt,
Matt Lehman and Brad Tabke.
Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City
Administrator; R. Michael Leek, Community Development Director;
Bruce Loney, Public Works/Engineer; Jim Thomson, City Attorney
and Julie Linnihan, Finance Director/City Clerk
1. Roll Call
President Clay called the meeting to order and roll was noted as above.
2. Revision to City of Shakopee Subsidy Policy.
Whiting/Lehman moved to open the public hearing. Motion carried 5-0.
Leek said that at the time the Business Subsidy Policy was put in place, the federal
minimum wage was $5.15 per hour, so 275% of the minimum wage was $14.16 per hour.
In 2007 Congress passed a bill that resulted in the minimum wage increasing over time. It
is currently $7.25 per hour. Applying the 275% standard,jobs created are to pay about
$19.94 per hour. For some business segments that is no longer realistic. This is the case
for the SanMar project, where the typical wages for warehouse positions are apparently
between$12.00 and $14.00 per hour.
Leek said that in light of the recent SanMar proposal and after further discussions with
City Council the draft has been revised to have a wage floor (exclusive to benefits) of
175% of the federal minimum wage ($12.69 per hour).
Cncl's. Whiting and Lehman expressed concerns about the 175% of the federal minimum
wage and would like it changed to 200% of the Federal minimum wage (14.50 per hour).
Cncl. Punt said that she would like to keep it at 175%because it allows a private employer
to make a decision of how they are going to pay their employees without the Council
creating a threshold that's so high that they can't operate their business.
Clay asked if there was anyone in the audience that wished to speak at the public hearing.
No one responded.
Lehman/Whiting moved to close the public hearing. Motion carried 5-0.
Whiting/Lehman offered Resolution No. 12-6, A Resolution of the EDA approving the
revised Business Subsidy Policy and change the wage floor from 175%to 200% of the
federal minimum wage. Motion carried 5-0.
Official Proceedings of the May 15, 2012
Economic Development Authority Page 2
3. Consideration of Proposed Tax Increment Financing(TIF) Plan for TIF District No.
15 (Trident L.L.C. senior housing project) and Contract for Private Development
(CPD) between the City of Shakopee and Trident Development, L.L.C.
Lehman/Whiting moved to open the public hearing. Motion carried 5-0.
Leek asked the EDA to continue the public hearing to June Sth so that staff, the City's
attorney and the applicants can work through the terms of the CPD and that the CPD and
TIF plan can be presented together to the City Council and EDA.
Tabke asked if anyone in the audience wished to speak at the public hearing.
Roger Fink, Trident Development, L.L.C.,thanked the Council for continuation of the
public hearing to finalize the CPD and TIF plan.
Lehman/Whiting moved to continue the public hearing to June 5, 2012.
4. Approve of the minutes.
Whiting/Punt moved to approve the minutes of April 17, 2012 and Apri124, 2012.
Motion carried 5-0.
5. Resignation of Fatima Franzen from Economic Development Advisory Committee
(EDAC).
Whiting/Punt moved to accept, with regret, and with a thank you for service to the City of
Shakopee, the resignation of Fatima Franzen from the EDAC, and direct staff to take the
appropriate steps to fill the vacancy created by her resignation. Discussion followed.
Tabke asked how the position will be filled. Leek said that in talking with the City Clerk
a decision was made to re-advertise for the vacancy. Motion carried 5-0.
6 Adjourn.
Whiting/Lehman moved to adjourn to Tuesday, June 5, 2012 at 7:00 P.M. Motion
carried 5-0.
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Ju ie Linnihan
Finance Director/City Clerk.
Kim Weckman
Recording Secretary