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Home My WebLink About2001-07-26 MINUTESSPECIAL MEETING COTTAGE GROVE CITY COUNCIL JULY 26, 2001 CAL� TO ORDER The City Council of the City of Cottage Grove, Washington County; Minnesota held a regular meeting on Thursday, July 26, 2001, at the Cottage Grove City Hall, 7516 80t Street South. Mayor Shiely called the meeting to order at 7:15 p.m. RO�� CALL Present: Mayor SandyShiely Council Member Pat Rice Council Member Cheryl Kohis Council Member Jim Wolcott Absent: Gouncil Member Rod Hale Also Present: Ryan Schroedet, City Admi�istrator Michelle Wolfe, Assistant City Administrator Ron Hedberg, Finance Director Neii Belscamper, Administrative Secretary Mayor Shiely presided over the meeting. BUSINESS ITEMS A. TIF 1-12—HOLD PUBLIC HEARING AND CONSIDER PROGRAM AND PLAN City Administrator Schroeder introduced the item. The TIF 1-12 district is part of alarger360-acre district cailed tFie Gateway Redevelopment District. Originally, the public hearing was scheduled for August 15, but because of changes in legislation thaf affect Tax lncrement Financing beginning August 1, the public hearing was moved up to tonighYs meeting. Schroeder explained that development agreements for iwo p�ojects in the TIF 1-12 District (Grove Plaza and 80th Street) are up for consideration on fhis agenda. Cottage Square Mail is also covered in the district, he elaborated, but no proposals are currently in place; a project would have to take place on that parcel within five years of the estabiishment of the district or else the parcel would have to be removed from the district Mayor Shiely opened the pubiic hearing. No one spoke at the public hearing. Mayor Shiely closed the pubiic hearing. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 01-100, ADOPTING THE MOD(FtCATION TO THE DEVELOPMENT PROGRAM FOR DEVELQPMENT DISTRIGT N0: 1 AND ESTABLISHING TAX WCREMENT FINANCINGbiSTRICT 1-12 THEREW AND ADOPTING THETAX INCREMENT FINANCING P�AN THEREFOR, MOTION CARRIED 4-0. � DEVELOPMENT AGREEMENTS American AGCO Special Meeting — July 26, 2001 Cottage Grove Cify Council Page 2 City Administrator Schroeder stated that several representatives of American AGCO we�e in attendance. He introduced Gary Duclos, the company's president. Schroeder said that the facility wouid be an 81,000 square-foot warehouse facility on a 6-acre parcel near Advance Corporation on 97th Street. The development is on fast-track scheduling, and construction is hoped to begin,around September 4. Duclos presented some background information on American AGCO. They are a 65-year-old business presently tocated in South St. Paul. Their business operates primarily as a distributor in the Hobby Farm/Companion Animal trade. Some limited manufacturing of birdfeed also takes place. American AGCO's range of operations covers 9 states and they current(y employ around 140 peopie. Sixty employees would be relocating to the Cottage Grove facility: Council Member Kohls asked if the sixty employees are ail from the current facility, or if new employees would be hired from the Cottage Grove area. Duclos replied thaf most of the empioyees would be coming from their existing facility, but that most are from the south-east metro area. Kohis asked if the 6-acre parcel would be large enough for expansion oftheir ope�ation if need be. DuGos felt that the parcel would be adequate for their needs well into the future. Kohls asked what the long-term goal for creation of new jobs was; and Duclos responc hoped five new position could be created. Schroeder added that there is a job-compon requirement as a part of the funding mechanism for the pPnject; and that a conservativ� of three new positions had been included in the development agreement. Kohis asked AGCO would be an active participant in the local community. American AGCO, Duclos actively irnolved with South St. PauP and oftentimes makes donations to organization.s Humane Society. ed that they :nt � requirement f American explained; is uch as the Gouncil Member Wolcott inquired what type of construction would be usedfor the faci�ity. Geof Benedict of Vanguard Construction said it wouid be constructed of exposed-aggregate panels, consistent with other facilities in the industrial park. Wolcott asked how many loading;docks the facility would have. Benedict'replied there woultl be 2Q`Schroeder commented that this was a good site forthis type ofproject, with good buffering for their shipping operations. Mayor Shiefy asked how many trucks would pass through per day. ,Ducios said that twenty would be going out and ten would`be coming in on a typical day. ' MOTION BY RICE; SECONDED BY KOHLS, TO APPROVE THE DEVELOPMENT AGREEMENT FOR AMERICAN AGCO. MOTION CARRIED 4-0. 2. Twin City Pouitrv Gity Administrator Schroeder said this site pian was not presently center of 50,000 square feet; expand� agreement would be uery similar to th plan was currently available; Mayor SI wouid meet the Citv's standards fo� th 1 was not as far along as the previous one, and that a Special Meeting — July 26, 2001 Cottage Grove City Council Page 3 M0710N BY RICE, SECONDED BY WOLCOTT, TO APPROVE THE DEVELOPMENT AGREEMENT FOR TWIN GTY POULTRY. MOTION CARRIED 4-0. 3. 1st Industrial City Administrator Schroeder expiained that this project was fora multi-tenant building of approximately 120,000 square feet near the CCE facility. Approximately 50,000 square feet of the facility would have to be pre-leased before constructio� could begin. Mayor Shiely asked whether similar projects had been completed in other areas of the Twin Cities. Schroeder responded that they had, and that leasing the spaces had not been a problem in the other facilities which he had been involved in: Shiely asked what types of business typically lease such spaces. Schroeder replied that sma(I manufacturing operations, such as tool and die businesses, typically locate in these types of facilities. Other types of operations might even border on retail businesses, he added, such as dance studios. MOTION BY WO�GOTT, SECONDED BY KOHLS, TO APPROVE THE DEVELOPMENT AGREEMENT FOR 1ST INDUSTRIA�. MOTION CARRIED 4-0. 4. Grove Piaza City Administrator Schroeder described the project, which is inGuded in the TIF 1-12 District, as an expansion and remodeling of the existing Grove Plaza that would include a Home Depot. Severai conditions would have to be met before this project could take piace, including the relocation of the existing Waigreens. The City wouid dedicateTlF revenues for site improvements, and the owners of Grove Piaza would deed the oid Burger King facility to the City for storm water ponding. CounciF Member Wolcott stated that the architecYs plan had been a compromise and questioned whether there would be an option for approval of the final version by the City. City Administrator Schroeder stated that a condition to that effect could be attached to a motion. MOTION BY KOHLS, SECONDED BY RICE, TO APPROVE THE DEVELOPMENT AGREEMENT FOR GROVE PLAZA, CONDITIONED UPON FINA� APPROVAL OF THE DESIGN PLAN BY THE CITY COUNCIL. MOTION CARRIED 4-0. 5. SOth Street City Administrator Schroeder outiined the project for the a�ea north of 80th Street, between U.S: Bank and TutorTime, which wouid involve the buyout of four residentiai and five commerciai properties. This area is included in the TIF 1-12 District. As a part of this development agreement„ acquisition of all the properties in question would have to take place by June of 2002; the City wouid be required to use eminent domain proceedings for any properties not acquired by that time, The City Gouncii had already authorized appraisals of the properties. Council Member Wo{cott asked whether the City was comfortable with the estimates for acquisition of the commerciai property. Schroeder said the estimates shouid be accurate, in that they have taken into account relocation and other costs. He added that the development agreement allows for an out should there be substantiat cost increases in the acquisition of the properties. Mayor Shiely asked when the name of the retailer could be released. Schroeder said that they could release the name once the development agreement had been approved by all parties. Special Meeting — July 26, 2001 Cottage Grove City Council Page 4 MOTION BY WOLGOTT", SECONDED BY RICE, TO APPROVE THE DEVELOPMENT AGREEMENT FOR THE 80TH STREET PROJECT. Schroeder reminded everyone that the development agreement contained a commitment to go forward with eminent domain proceedings if ali the properties could not be acquired by any other means. Kohis stated that she was uncomfortabie making a commitrnent to Lse eminent domain proceedings to acquire property for a Yetail business. In response, Schroeder commented that there should be pienty of#ime to acquire the properties without having to �esort to using eminent domain proceedings. Kohls felt thaYthe retailer should be willing to commit more money to the acquisition of properties. Mayor Shiely saitl the project would be a benefiit and help spur the growth of other retail businesses in the community. Kohis concurred that she wouid like to see the business in the community, but was stili uncomfortable supporting the commitment.to use eminent domain proceedings to acquire the properties. UPON VOTE BEING TAKEN, MOTION CARRIED. 3-1. (KOHLS NAY} C. CONSIDER ORDERING A FEASI8ILITY STUDY AND PLANS AND SPECIFICATIONS FOF THE EXTENSION OF 97TH STREET City Administrator Schroeder explained that the road project is needed as a resuit of the American AGCO and Twin City Poultry projects in the �ndustrial Park. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 01-141,, ORD�RING A FEASIBILITY STUDY FOR THE`EXTENSION OF 97TH STREET. MOTION' CARRIED 4-0� MOTION BY WOLCOTT, SECONDED BY RICE, TO'ADOPT RESOLUTION NO. 01-102, ORDERING PLANS AND SPECIFICATIONS FOR THE`EXTENSION OF 97TH STREET. MOTION CARRIED'4-0. ` ADJOURNMENT MOTION BY WOLGOlI', SECONDED BY KOHLS, TO ADJOURN THE MEETING AT 8:30 P.M. MOTION'CARRIED. 4-0: � �