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HomeMy WebLinkAbout2003-02-11 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES February 11, 2003 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 February 2003. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Wolcott. Members Present: Jim Wolcott, EDA President Sandy Shiely, EDA Vice - President Mike Wennen, Authority Member Gerry Weingartner, Authority Member Glen Kleven, Authority Member Members Absent: Dick Pederson, Authority Member Others Present: Ryan Schroeder, City Administrator Michelle Wolfe, Assistant City Administrator Nancy Hanzlik, City Engineer Scott Johnson, Management Analyst APPROVAL OF MINUTES Authority Member Gerry Weingartner moved to approve the January 14, 2003 EDA Minutes. Mike Wennen seconded the motion and the Motion carried unanimously. SCHMID & SONS PUBLIC HEARING AND DEVELOPMENT AGREEMENT EDA President Jim Wolcott opened the public hearing. He asked everyone in attendance for comments or objections to the project. Hearing no comments or objections to the project he closed the hearing. Next, Michelle Wolfe explained to the EDA that the City of Cottage Grove passed a resolution in 1999 to grant business subsidies to businesses that met certain criteria, which are reviewed on a case by case basis. The subsidy involves the Economic Development Authority - Minutes February 11, 2003 Page 2 use of Tax Increment Financing for project land costs. Authority Member Glen Kleven asked if the employment goals are stated in the resolution. Ryan Schroeder answered that the language in the agreement is not necessary because of the Green Acres legislation, which requires that wages are a higher percent of minimum wage and that a minimal level of jobs must be created. Mr. Schroeder also commented that job creation is the secondary goal and the primary goal is increased tax base. Michelle Wolfe commented that the Development Agreement does have a section on job creation. Mayor Shiely asked if the business had a number of temporary positions and would they use local people. Michelle Wolfe said that they use a temporary service to fill some positions. Ryan Schroeder explained that we can encourage the hiring of local people, but we cannot demand businesses hire local people. Michelle Wolfe also commented that local businesses have found a ready and able working pool in Cottage Grove. Staff needs to update the information on the local labor pool that was compiled in 1999. Mike Wennen made a motion to approve a public subsidy for the Schmid and Sons project. Gerry Weingartner seconded the motion and the motion carried unanimously. Next, the Authority discussed a resolution to approve a development agreement with Schmid and Sons. Ryan Schroeder commented that development agreement follows standard form. This particular agreement allows for Schmid and Sons to bring in fill for the building site and the project will share a new pipe for storm water purposes with a future development next door. He also explained that the life of the TIF district will extend to 2009 and Schmid and Sons must own the building for a minimum of that duration. Mayor Shiely made a motion to approve the development agreement and the sale of Industrial Park property to Schmid and Sons. The motion was seconded by Gerry Weingartner and the motion carried unanimously. PROJECT UPDATES Michelle Wolfe told the Authority that the City has received three leads since the last meeting. One is for a 150,000 sf light manufacturing project, a 30,000 sf MEDP project, and a 10,000 sf project. Staff is currently going through the active list to find out which projects are still possibilities. GATEWAY NORTH Mr. Schroeder informed the Authority that the City owns everything except for the Ruvelson and 1501 Partnership properties for the Kohl's project. The City is proceeding with condemnation proceedings with these two properties. The Ruvelson property has gone through the public purpose hearing and the judge ruled in favor of the City. The 1501 Partnership Property will propose a landscape and grading plan for the property at a meeting next week. They will also discuss the land swap and a monument sign at this time. Staff wanted the EDA's input and direction on the Oakwood Park Commercial parcel. The parcel is 3.82 acres in size and a 30,000 to 35,000 sf project could be constructed on the parcel. A sketch of a multi- tenant building and a restaurant were included in the packet. Mr. Schroeder is trying to put together a purchase agreement with what the City would allow on that site (aesthetics, users, etc.). Glen Kleven asked if the agreement specified that a sit down restaurant be built on the site. Ryan Schroeder said that it was not a part of the current agreement. The EDA members agreed that they would like to have a sit down Economic Development Authority - Minutes February 11, 2003 Page 3 restaurant built on that site. Jim Wolcott asked if the aesthetics needed to be tightened up. Mr. Schroeder said that any area of the building that is non -glass needs to be brick construction with 85% of the back fagade made of brick. There also needs to be some type of feature (clock, fountain, etc.) on the property. Jim Wolcott asked if there would be a view of the park from any of the locations. Mr. Schroeder said the lower part of the site will have a hill behind it, but the rest will have a view of the park. He also mentioned that he has three parties that are interested in the parcel. Mayor Shiely commented that the City owns the property and she is hesitant to give up control of the property to a developer. The strip malls that have been built in the past have not attracted the restaurants that the City wants. Glen Kleven mentioned that the spaces in the new strip malls have filled up quickly and there is not enough space for other projects that are wanted in the community. Mr. Kleven thinks the City needs to find the right commercial project. Mr. Weingartner said the City should not be in a hurry to develop the parcel due to the poor economy. Mike Wennen mentioned offering a subsidy for certain projects. Ryan Schroeder said the City would need to use general fund money to subsidize a project at this site because it is outside of a TIF district. The City needs to weigh what we want with what size project the lot can sustain. Mayor Shiely commented that the City has a limited amount of locations for a big restaurant or a small box retail user. The City needs to bring in larger restaurants to look at the site. Jim Wolcott asked if the City could set up an RFP process for the site to control what is built on the property. Mr. Schroeder said the City can do this to some extent, but businesses will not put much money into the design. Ryan Schroeder proposed that the City could have a design competition or charette for the parcel with a laundry list of what City leaders want or do not want on the parcel. EDA members will email their ideas for the parcel to Michelle Wolfe to be discussed at future meetings. EDA members do not think the City should be in a hurry to develop the parcel. They think the City should wait for the right project. After the list has been compiled the City will hire an architect to help create a vision for the parcel. GROVE PLAZA FACADE Staff presented the new proposal for the Grove Plaza fagade. The snow load will affect how high the fagade will be constructed. Glen Kleven thought the proposal looked out of scale with the rest of the structures. Mr. Kleven proposed that they make the small user space look like one space. Gerry Weingartner agreed with Mr. Kleven because there is no flow to the roof lines. Mayor Shiely also thought a straight roof line would make the fagade look better. The EDA thought the small tenant spaces should look like one or two spaces. Also, some examples of signs were passed around at the meeting and the EDA liked the examples. KOHL'S PROJECT Ryan Schroeder updated the Authority on the Kohl's project. As of date, the project is moving forward within budget. The project is on schedule for March demolition of existing Economic Development Authority - Minutes February 11, 2003 Page 4 structures. The land needs to be ready and delivered to Kohl's by June 15 Jim Wolcott asked if a plan had been drafted for the US Bank temporary road. Mr. Schroeder said the City will use a portion of the US Bank, Victory Church, and Pet Clinic properties for the road. Burnett Realty will always have access off 80 St. until Hardwood Court is completed. Ryan Schroeder next asked for the EDA to authorize him to deposit money on the Ruvelson and 1501 Partnership Property for quick take proceedings. The City will use the appraised value of $75,500 for the Ruvelson property and will trade property in the value of $27,127 with 1501 Partnership Property. The City Appraiser is updating the appraisal. We will use his updates when they become available. A motion was made by Gerry Weingartner to authorize Ryan Schroeder to deposit money in the amount of $75,500 for the Ruvelson Property. Mayor Shiely seconded the motion and the motion passed unanimously. A motion was made by Gerry Weingartner to authorize Ryan Schroeder to trade property with 1501 Partnership Properties in the amount of $27,127 subject to a review of the appraisal for both. Mike Wennen seconded the motion and the motion carried unanimously. 2003 BUSINESS BREAKFAST Jim Wolcott commented that it was a nice event with a good speaker, but was poorly attended due possibly to weather and the date. Michelle Wolfe informed the EDA that the City received 78 RSVP's for the event and only 45 people attended. Mr. Wolcott would like the staff to come up with a new plan for next year's breakfast. RIVER OAKS /EDA JOINT VENTURE Employees of businesses in the Industrial Park will be able to take advantage of discounts at River Oaks Golf Course. This will help the golf course target market towards businesses. This could possibly be expanded to all businesses in Cottage Grove. Gerry Weingartner thought it was a good idea, but thought we should consider recognizing older businesses. Mr. Schroeder wanted to start small for the first year and if the promotion is successful, then expand to other businesses. Mr. Weingartner thought the promotion was starting backwards with the newest businesses. Glen Kleven thought the 50% discount for meetings was steep. It gives the perception that they are over - charging for the rest of the year. Mike Wennen commented that he would like to golf at River Oaks, but tee -times are not always available for businesses because preference is given to patron card holders. Ryan Schroeder said the golf course is looking into the times when tee -times are open. Mayor Shiely felt the golf course should try it for a year and make sure that everyone who is qualified for a patron card has one. Mr. Wolcott thought that a business level patron card would be a good idea. Glen Kleven made a motion to accept the new joint marketing event between River Oaks and the Industrial Park businesses. Mike Wennen seconded the motion and the motion carried unanimously. UPDATE GATEWAY FINANCES Ryan Schroeder updated the EDA on the finances for the Gateway area. The memo included all the non - roadway expenses to date. A portion of the proceeds from the project are not EDA revenue and will not go to projected expenses. Future tax revenues from the project were not included because they will go to the general fund. There is approximately Economic Development Authority - Minutes February 11, 2003 Page 5 $2 million in general fund revenue projections not shown. Jim Wolcott and Mayor Shiely thought the revenues should be listed. EDA VACANCY Jim Wolcott encouraged members to come up with names for the vacancy. There are no business or residency requirements for the Authority, but members want someone who is connected to the community. An_ini iRN The EDA adjourned at 9:15 a.m. Respectfully submitted, Scott Johnson Management Analyst