Minutes of the
Regular Meeting of the
Detroit Lakes Development Authority
Thursday, May 22nd 2008
3:30 PM
City Administration Building
Conference Room
MEMBERS PRESENT: Jim Anderson, Tom Klyve, Mary Beth Gilsdorf, Mark Hagen,
Greg Hildenbrand , Dennis Winskowski, Matt Brenk,
MEMBERS ABSENT: None
OTHERS PRESENT: Robert Louiseau, Larry Remmen, Nancy Wichmann, Bruce Imholte, Ron Zeman, Cory Scott, Marty Shukert
Lynne Krieger
I. CALL TO ORDER:
Chairman Jim Anderson called the meeting of the Detroit Lakes Development Authority to order at 3:30
PM in the Conference Room of the City Administration Building, 1025 Roosevelt Avenue on Thursday,
May 22, 2008. All members of the Authority have been duly notified of the meeting and the business
to be transacted.
II. MINUTES:
A motion was made by Commissioner Mark Hagen seconded by Commissioner Dennis Winskowski
and carried unanimously to approve the minutes of the regular meeting held May 6th, 2008 subject to
the amendment and correction of the motion on Page Four paragraph two to read as follows: A motion
was made by Commissioner Dennis Winskowski to deny the request for tax increment financing based
on the fact that it was for market rate housing, seconded by Commissioner Mark Hagen.
III. FINANCIALS:
None
IV. OLD BUSINESS:
Larry Remmen reported he received a letter from Wint Johnson, Moorhead Center Development, with
reference to shortfall of payments for tax increment financing District 8-10, Marina Condominiums.
Johnson agrees there currently is a shortfall, but the district’s collection should be gaining in 2008 and
is requesting that the Authority continue to monitor the District’s collection and defer payment until the
collections make up the shortfall.
A motion was made by Commissioner Mark Hagen, seconded by Commissioner Mary Beth Gilsdorf and
no action was taken to enforce the payment as agreed in the original tax increment financing contract
between Moorhead Center Development and the Development Authority. After the Authorities further
discussion, Commissioner Mark Hagen made a motion to table his previous motion to further
review specific information on the tax increment financing payment policy.
Other
Larry Remmen informed the Authority that he attended a meeting with the Pelican River Watershed District
with reference to the Rice Lake Project and the impact on the wetlands of the Detroit Lakes North
Industrial Park. No action was taken.
V. NEW BUSINESS:
A. Consideration to the sale of Lot 1 of Block 1 Detroit Lakes North IndustrialPark to Engen
Enterprises for construction of a warehouse
Larry Remmen reported that Engen Enterprises has requested to purchase Lot 1 of Block 1 Detroit Lakes
North Industrial Park for the asking price of $49,000 with an assessment of $22,000 at 7% for 20 years.
The assessment shall be certified to the County Auditor in December of 2009. Engen Enterprises
plans to construct a 12,000 SF warehouse building. A motion was made by Commissioner Matt
Brenk seconded by Commissioner Tom Klyve and carried unanimously to accept the offer from
Engen Enterprises as presented for Lot 1, Block 1 Detroit Lakes North Industrial Park. The sale of this
lot would leave one remaining lot for sale in the North Industrial Park.
The Authority discussed the concern and lack of building lots available and whether the extension of
sewer and water would be feasible to create more lots for sale. A motion was made by
Commissioner Mary Beth Gilsdorf seconded by Commissioner Greg Hildenbrand and carried
unanimously to have Gary Nansen, Ultieg Engineers engage in a feasibility study and study options
to extend sewer and water (400’ and 1000’) to expand the lot inventory in the Tower Road Industrial Park.
B. Consideration to a sub-ordination agreement with Bremer Bank relativeto the B & W Properties
of DL, LLC Loan
B & W Properties of DL, LLC is refinancing their building that was constructed in the North
Industrial Park. Bremer Bank is requesting the Authority to sign a subordination agreement for this
transaction. A motion was made by Commissioner Dennis Winskowski, seconded by
Commissioner Matt Brenk and carried to approve the subordination agreement as presented.
C. Steering Committee Meeting with RDG relative to the Business CorridorStudy
The Authority (via speaker phone) discussed with David Stone, ERA, the Conference Center
Executive Study addressing questions and concernsregarding the Study.
David Stone reported:
· They found a definite need for more meeting room space in Detroit Lakes;
· Events currently turned away from Detroit Lakes is due to the existing facilities having various limitations to the types and sizes of events being held, lack of break out rooms, food service and parking;
· Successful events centers in the region and nationally have adjacent on-site motel rooms;
· The market did not show a need for additional hotel rooms, compared to what we currently have;
Recommendations & Executive Summary
Recommended is a 10,000 square foot facility, with 7,500 sf of the facility being a versatile multi-purpose ball room/exhibit hall/clear span/open space facility. The center should be able to host anything from a banquet to an exhibit or a consumer trade show, with another 2,500 sf of meeting space for different rooms for different capacities
Success forecast can not be based on management quality and creativity. They did find successful venues over the course of projects but a significant number of convention centers do lose money. A lot depends on if there Is a full service kitchen in the meeting facility or is there a catering kitchen or are they attached to a full service hotel that does all of the catering.
There are privately owned banquet halls that are profitable, but most of the publicly owned convention centers are not. Food and beverage revenues are generated from banquets, whereas a public facility is more interested in bringing people to town and spreading the money out around the town with hosting activities outside of the four walls of the facility. (i.e. conventions, trade shows and conferences) Those types of revenues are a trade off.
The consultants just returned from Polk County, Iowa and the Iowa Events Center. Their facility is an arena as well as a convention center. The convention side of the facility loses about a million dollars a year, but the arena makes up the difference from a cash flow stand point.
Marty Shukert reads the study to say that it is pretty essential that a facility, to work, has to be attached to a hotel.
Part of the dilemma is that they want a location that offers additional benefit such as a lake
Chairman Jim Anderson questioned if the Study showed that there is not a need for additional hotel space. True or not? Steve reported the study concluded that the hotel market is very soft. There was a real question as to how to generate additional demand. One reason for a site choice around the water front, is that it would boost the demand once the weather turns colder. A water park hotel attached to a convention center would boost tourism from outside. One choice of the existing hotels would be the Holiday Inn. Being a destination hotel is part of the success.
Commissioner Mark Hagen requested the types of conventions that would be attracted and what is in the report is inadequate. It is not clear enough. Marty Shukert suggested clarification of this issue.
Commissioner Tom Klyve would like a list of previous projects listed in the report that decided to build, and would like to see a 3-5 year financial performance of the facilities and how close the projections of the consultant’s studies were that are outlined in the report. Also, he would like to receive a copy of each center’s report.
Commissioner Dennis Winskowski said the report presented was almost identical as the study done in 1995. He requested to discuss the need for the facility serving the local population and the need for an expanded facility to serve the local population. The community center has taken the role to serve the community.
Marty Shukert reported that if there was a need to build a 10,000 sf facility that there should be two sites.
1. Lake front, and if hotel is critical it would be West Lake Drive and Washington Avenue.
2. Holiday Inn is a second option
And a third is there a site near the community center.
The Authority reviewed the map of Gateway Development Area prepared by RDG.
DOWNTOWN AREA
Expressions of long term development from the hospital:
· New lobby and building entrance to the former County Market
· On the opposite side of the street with the hospital expansion across from it on Lincoln
· Un allocated commercial building on the opposite side
· Replanned commercial area with two main store fronts and another commercial area
· Suggested hospital campus development on Frazee and McKinley area
The design tried to capture continuous open space.
The Anglo American site and car wash site could be developed as a new commercial area.
Councilmember Bruce Imholte inquired whether the City could be the developer of the remaining commercial area. Marty responded that the City would be better off developing the guidelines, performance standards and the framework and let people whose business it really is develops the sites. There is a developer interested in the site and that is favorable. When asked how many actual commercial sites are there, Marty responded approximately 10-12 storefronts and an anchor store. Imholte commented that people are fighting to get into the commercial spots.
Marty responded that the development of the north side is a tough area where things become more difficult.
Circulation of traffic at the Graystone is not favorable to what MNDOT is suggesting.
SOUTH WASHINGTON AREA
There is strong reinforcement of the connection between the downtown area and the lake area. Market forces will work in this area with downtown market lighting and landscaping that will connect the two areas together. The ball park stadium and ice skating pond is a positive for the area.
WEST LAKE DRIVE AND WASHINGTON AVENUE is so beautiful it would possibly attract its own people in its own way. A hotel could be constructed on the corner of Washington and West Lake Drive, with lake views from the majority of the rooms. This would be with connection of an events center. West Lake Drive and Minnesota could be developed into a retail area. 300 parking spaces would be calculated and a 100 room hotel facility. There is a possibility of potentially developing and extending North Shore Drive through People’s Street to the Fair grounds.
WEST LAKE DRIVE OBSERVATION
The consultants observed people walking and roller blading on the 4’ strip along the beach, but it is in the parking shoulder on north side of the trees. The south side of West Lake Drive is posted as no parking. If parking could be compensated elsewhere, perhaps the development of a board walk type of pathway could be made. West Lake Drive could be narrowed with the north curve staying the same and the south curve coming roughly to the edge of the current parking area, along with thirty feet of street section with parking on the north side, and two 11 foot drive lanes. On the south side, north of the tree line, there would be 14 to 15 feet to work with. One suggestion here is a multi-use trail on the street side of the trees. Safety strips would be in contrasting colors with a 9’ wide inside track that accommodates wheels, cruiser bikes, in-line skates or other wheel entities. Within this would be a pedestrian walk with contrasting colors. Boulder, CO’s streetscape was viewed.
The Legion Campground and single family along West Lake Drive is not incorporated into the plan.
NORTH WASHINGTON AVENUE
In 2010 the County will be doing a re-construction of North Washington Avenue. The consultants met with County Engineers.
Dennis Winskowski said the new highway will cut off the whole North Washington Avenue, and measures should be taken to have it remain connected. Marty stated the depot being re-constructed as a hub will be a help to the area, but there should be a concern about a pedestrian and vehicle crossing of the highway. The Depot Plaza and making the north Washington a nice commercial destination area with compelling use ideas might work, but not a lot of pedestrian crossing will be from south to north.
Another solution is to tap north Washington from another street.
There are two ideas that could be useable in the design of the intersection
Marty Shukert reported that he had met with David Spies and discussed the condominium/bowling alley project. Possibly incorporating a bowling alley into a redevelopment area could be a good thing. Crossing the railroad tracks for league bowling would be a concern.
The next step is for RDG is to return in July. Promotional material for the public could be completed by the 4th of July. Council member Imholte suggested having material completed for the City Council’s Strategic Planning meeting some time the end of June. A draft should be completed in August.
VI. Adjournment
There being no further business to bring before the Board, the meeting was adjourned.
Signed
Larry Remmen
Community Development Director