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Home My WebLink About2008-03-05 PACKET 04.A.i.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # /� � DATE 03/05/2008 ` , Finance & Administrative Services Joe Fischbach PREPARED BY: ORIGINATfNG DEPARTNIENT STAFF AUTHOR ��,��,,��.,�� COUNCIL ACTION REQUEST: Accept and place on file the November and December 2007 EDA Minutes. STAFF RECOMMENDATION: Accept and place EDA minutes on file. BUDGET IMPLICATION: BUDGETED AMOUNT ADVISORY COMMISSION ACTION: DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS � ECONOMIC DEV. AUTHORITY ❑ SUPPORTING DOCUMENTS: ❑ MEMO/LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAI. RECOMMENDATION: ADMINISTRATORS COMMENTS: REVIEWED ❑ ❑ ❑ ❑ ❑ � ACTUALAMOUNT APPROVED ❑ ❑ ❑ ❑ ❑ � ❑ ( / �i9�G1��i�X�t v ` City Administrator DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ Date ��,��,��.��,��.«��.� COUNCIL ACTION TAKEN: [�APPROVED ❑ DENIED ❑ OTHER CITY OF C4TTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES November 11, 2007 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at City Hali, 7516 80th Street South, Cottage Grove, Minnesota on the 11th day of November 2007. CALL TO ORDER The meeting was called to order at 7:31 a.m. by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Tony Jurgens, EDA Member Paul Poncin, EDA Member Pat Rice, EDA Vice President Gerry Weingartner, EDA Secretary/Treasurer Sara Westall, EDA Member Members Absent: Jim Woicott, EDA Member Others Present: Howard Blin, Community Development Director Joe Fischbach, Management Analyst Ron Hedberg, Director of Finance & Administrative Services Ryan Schroeder, EDA Executive Director Sandy Shiely, Mayor Ken Smith, Management Analyst Jesse Swenson, Management Analyst Paul Abdo, Anxon Inc. Jon Avise, South Washington County Bulletin AI Ploeger, Mainstreet Bank Ann Simpson, South Washington County Telecommunications Commission Economic Development Authority - Minutes November 13, 2007 Page 2 APPROVAL OF MINUTES A motion was made by EDA Vice President Rice to approve the September 11, 2007 Economic Development Authority minutes and acknowledge the minutes from October 9, 2007. Seconded by EDA Member Poncin, All Present in Favor. r •-u . •�� EDA Executive Director Schroeder gave the EDA a development update. The City Council held a special meeting on October 25 to discuss the signage related to the roundabout. The City continues to work with MNDOT to replace some signage with those of a fish hook design. At Southpoint Ridge curbing for the lower portion is in and paving should occur the week of November 11` Oak Park Commons is 100 percent leased. The Werner Minnesota project has curbing in and paving is expected the week of November 11 At Norris Square, paving is complete and site work continues for the commercial portion of the project. In the Everwood subdivision, the first phase is under construction with one home currently being built. Paving is scheduled for this week at the Preserve at Cottage Grove with home construction to begin soon thereafter. A neighborhood meeting was held for the 2008 pavement management reclamation project on October 29` Due to MNDOT funding issues the Lehigh/Manning project has been pushed back to 2009. The final design for the ice arena project is being wrapped up with a December bid expected. The Pine Tree Valley Park improvements are substantiaily complete. Utilities are in between Jamaica and Keats for the East Ravine project. Connection to the Preserve and paving of Military Road should occur during the week of November 11` The City and County are working on a transportation plan that should be complete in January. Development talks between the City and the developer for the CottageView site have ceased until that plan is completed. Building permit values, including residential and commercial/industrial, are estimated to be around $70 million. 2007 is projected to be the second lowest year in housing permits in the last 38 years. DISCUSSION OF ADVANCE FITNESS REVISED PROPOSA� This item was brought before the EDA for direction to City staff. The EDA has seen this item a few times in the past months. The developer is asking the City and/or the EDA for $5-6 million, possibly more, in subsidies by way of land, waiving of construction fees, installation of public improvements and paying for the construction of an outdoor pool. it was the consensus of the EDA that the proposal asks too much of the City and/or the EDA in terms of assistance and it is not feasible for the City to pursue this proposal any further as presented. The EDA would certainly look at any revised proposal that relies less on subsidies. AUTHORIZATION TO ACQUIRE TAX-FORFEITED PARCEL IN THE 9500 BLOCK OF ISLAY AVENUE Staff brought to the EDA a proposal to purchase tax forfeited property in the Langdon area. The acquisition cost would be $13,262.04 for the 0.5 acre parcel. Motion by EDA Member Poncin to authorize the acquisition. Seconded by EDA Vice President Rice, All Present in Favor. Economic Development Authority - Minutes November 13, 2007 Page 3 COMPREHENSIVE PLAN STEERING COMMITTEE- SEPTEMBER SYNOPSIS Community Development Director Howard Biin presented what the Comprehensive Plan Update Steering Committee has been working on. They had a joint meeting with the City Council in September. They have discussed land use changes, changes to the transportation plan and a possible east-west county alignment. In December they plan to discuss parks planning. In February they plan on discussing the housing element. After that a draft pian would be put together for review. � The EDA members were reminded of upcoming meetings and events. MISCELANEOUS BUSINESS ITEMS Paui Abdo from Anxon Inc. gave a presentation to the EDA for a possible Gold's Gym to locate in the Langdon area of Cottage Grove. He describes Cottage Grove as a great market for Gold's in terms of population, demographics and location in the state. The project would not include any public subsidies. Currently there is not water and sewer in the proposed development area and extension of the urban service district would need to be approved by City Council with a comp plan amendment and final approval by the Met Council. It is not feasible to extend utilities to this one project and master planning a larger area would need to be done. A motion was made by EDA Member Poncin to further discuss the feasibility of extending utilities to this proposed site. Seconded by EDA Member Jurgens, All Present in Favor. ADJOURN EDA Vice President Rice moved to adjourn the meeting. Seconded by EDA Secretary/Treasurer Weingartner, Ali Present in Favor, the meeting adjourned at 829 AM. Respectfully Submitted, Joe Fischbach Management Analyst CITY OF CCITTAGE GROVE �CONOMIC DEVELOPMENT AUTHORITY �, MINUTES December 11, 2007 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at City Hall, 7516 80th Street South, Cottage Grove, Minnesota on the 11th day of December 2007. CALL TO ORDER The meeting was called to order at 7:31 a.m. by EDA President Bailey. �:Ti7��1�� Members Present: Members Absent: Myron Bailey, EDA President Tony Jurgens, EDA Member Paul Poncin, EDA Member Pat Rice, EDA Vice President Sara Westall, EDA Member Gerry Weingartner, EDA Secretary/Treasurer Jim Wolcott, EDA Member Others Present: Howard Blin, Community Development Director Joe Fischbach, Management Analyst Ron Hedberg, Director of Finance & Administrative Services Ryan Schroeder, EDA Executive Director Ken Smith, Management Analyst Jesse Swenson, Management Analyst APPROVAL OF MINUTES A motion was made by EDA Vice President Rice to approve the November 13, 2007 Economic Development Authority minutes. Seconded by EDA Member Poncin, All Present in Favor. DEVELOPMENT UPDATE Economic Development Authority - Minutes December 11, 2007 Page 2 EDA Executive Director Schroeder gave the EDA a development update. Southpoint RidgeMlhite pines, a 41 unit senior assisted living facility has begun digging at the lower plain of the development. Cuivers Restaurant is supposed to have its construction plans in by December 14, 2007. The 2008 pavement management moved ahead on December 5` after the City Council authorized the project and preparation of plans and specs. The transportation plan at the County Road 19 interchange with Highway 61 will go to Council in January 2008. An east/west county road alignment is possible at Highway 61. Werner Minnesota's wall panel construction began in November and the storm pond construction's bid award, held in early December, was significantly below the engineers estimate. The Council authorized an early bid package for the ice arena for the precast panels and long span steel portion of the project. There is a potential developer to reconfigure the former Walden Woods subdivision north of 65`" and east of Hadiey. The City put together a state bonding request of $2.5 million to improve storm ponding and green areas associated with the Gateway North redevelopment district, along with infrastructure components associated with the 80`" Street and Keats Avenue bridges. The US Homes assessment appeal is scheduled for December 17/18. The commercial/industrial permit values are to date 50% higher than the previous five to six years on average because of the Werner Minnesota, Hemingway Business Center, 80' Street Commons, White Pines, and Norris Square developments. The total number of residential permits is 62, which is the second to lowest since 1983, although the average home value is estimated at $450,000. Total permit comparisons indicate that 2007 is off by 11% from past years. EDA Member Jurgens asked what is happening with the commerciai area of Norris Square and EDA Executive Director Schroeder indicated that a possible anchor is a fitness center, and other facilities include a possible drug store. EDA Member Westall informed City staff that the Hemingway Avenue in the Business Park does not appear on any web based driving/direction maps. Community Development staff will look into this. HOUSING FORECLOSUERS This item was brought before the EDA for direction to City staff. In Minnesota from September 2006 to September 2007 foreclosures are up 183 percent, which are 1 in 1,500 households. In comparison Nevada has 1 in 185 households, Vermont has 1 in 61,000, and North Dakota has 1 in 17,000. in Cottage Grove the foreclosure trend is among homes valued at $180,000 - $220,000. Foreclosures are anticipated to have a moderating impact upon near term market value growth in neighborhoods within which foreclosures are prevalent. EDA Member Jurgens asked for Council awareness to this issue and EDA President Bailey noted that the Council has enacted delays on some future projects. EDA President Bailey asked if there are any areas in the City that are available to build multi-family facilities and EDA Executive Director Schroeder noted that the East Ravine has that kind of availability. EDA Member Poncin asked what the penalties are for unpaid City utilities. Finance Director Hedberg said that each month there is 1.5% interest added to the bili and at the end of the year if the utility bill is certified to the County a$75 administrative fee is added. Economic Development Authority - Minutes December 11, 2007 Page 3 PROPERTY SALE LETTER OF INTENT Staff brought to the EDA a letter of intent for a proposed hotel project east of Hardwood Avenue by the Gateway North First Addition. The letter of intent is a non-binding agreement prefacing a purchase agreement negotiated over the next 90 days. The hotel plan shows 82 parking spaces, the building is 4 stories tali (52 feet), and has a proposed 83 rooms. EDA Member Jurgens asked if there would be any restaurants or bars in the hotel and EDA Executive Director Schroeder noted that there would not be, and in regards to amenities that it would be similar to the Country Inn & Suites hotel. RIVER OAKS GOLF COURSE FISCAL UPDATE Finance Director Ron Hedberg presented a financial update on River Oaks Golf Course. Year- to-date the golf course is up 3.4% from 2006 to 2007, and the clubhouse revenues are up 10.8%. The 2007 expenses are up $44,840 with a net loss of 3.2% from 2006. Maintenance and Clubhouse expenditures have increased since 2006 by 7.2% and 6.9% respectively because of additional fertilizer, personnel costs, and responding to storm damage. River Oaks will continue to hold the line on expenses in 2008. River Oaks' debt will be paid off by 2013. EDA Member Jurgens noted that the Hastings Bridge replacement in 2020 could affect future golf and banquet business. CALENDAR The EDA members were reminded of upcoming meetings and events. A motion was made by EDA Vice President Rice to cancel the January 8, 2008 meeting. Seconded by EDA Member Westall, All Present in Favor. MISCELANEOUS BUSINESS ITEMS EDA enablinq resolution and term limits for EDA members (info onlvl Stae Tribune article on housenq market (info onlv) St. Paul Business Journal article on S&C MN Bank Community Development Director Howard Blin noted that S&C Bank has been purchased by Lake Area Bank and the bank's development in Almar Village will move ahead. ADJOURN EDA Vice President Rice moved to adjourn the meeting. Seconded by EDA Member Jurgens, All Present in Favor, the meeting adjourned at 8:45 AM. Economic Development Authority - Minutes December 11, 2007 Page 4 Respectfuliy Submitted, Jesse Swenson Management Analyst