The Board of Commissioners, in and for the County of ... - Scott County

September 13, 2011
Commissioner Wagner returned to the meeting at 9:10 a.m.
(7) Develop Strong Public Partnerships and an Active and Informed Population:
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Chief Financial Officer Kevin Ellsworth and Scott County Fair Manager Jim Luce requested
approval of the proposed retirement of Scott County Agricultural Society, Inc. (Ag Society) debt.
In 1997, the Ag Society borrowed $200,000 to construct barn #17 and in 2001 borrowed
$125,000 to construct barn #18. The current outstanding balance on these two loans is
$180,827 with an interest rate of prime plus 1% with a minimum of 5%. Due to cash flow
issues, interest only payments have been made since 2009 with no reduction being made on
the principal.
Mr. Ellsworth stated that this proposal would utilize the Scott County fund balance, would
optionally replenish the fund, and is in compliance with the County’s fund balance policy. Mr.
Ellsworth added that these funds are currently in short-term investments with an interest rate of
approximately .05%. Mr. Ellsworth also stated that this proposal would eliminate the interest
expenses for the Ag Society, which was $8,867 in 2011, and is a step toward the Ag Society
becoming self-sufficient.
Mr. Luce reviewed the revenue that is received from the rental of the barns at the Scott
County Fairgrounds.
Commissioner Wagner moved, seconded by Commissioner Menden to adopt Resolution
No. 2011-165; Authorizing the Retirement of Scott County Agricultural Society, Inc. Debt and
Reduction in the Future Annual Payments to Scott County Agricultural Society, Inc. A copy of
the resolution is available in the office of the County Administrator and is made a part of this
record by reference. Motion carried unanimously.
(8) Manage the Challenges and Opportunities Derived From Growth and Development:
County Auditor Cindy Geis provided general information regarding tax increment financing
(TIF) and specifically spoke about the TIF District that Prior Lake is considering establishing for
the River Valley Veterinary Clinic. Ms. Geis explained that under a provision enacted by the
legislature in 2010 and extended in 2011 to promote jobs within the State of Minnesota, this
proposed TIF district statutorily qualifies as an economic development district. The River Valley
Veterinary Clinic has requested TIF revenue to assist in the financing of a 7,000 square foot
expansion to the existing facility which will provide additional space for providing veterinary
services as well as kennels and other equipment. Currently the Clinic has 20 employees and is
anticipating the addition of four employees following the expansion. Ms. Geis stated that the
City of Prior Lake is the ultimate authority to approve or reject this TIF proposal; however, the
County does have the opportunity to provide comment regarding the project.
City of Prior Lake Community and Economic Development Director Dan Rogness stated
that although the City Council has not taken action on this yet, the Council has called for a
public hearing. Mr. Rogness added that City staff supports the request.
The Commissioners directed Ms. Geis to prepare a letter to be reviewed by the Board
Chair and the County Administrator stating the County Board’s support of the creation of the
proposed Tax Increment Financing District #1-4 in the City of Prior Lake.