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HomeMy WebLinkAbout2003-11-18 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES November 78, 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 18th day of November 2003. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Wolcott. Rni i r-n i i Members Present: Jim Wolcott, EDA President Gerry Weingartner, Authority Member Glen Kleven, Authority Member Sandy Shiely, EDA Vice - President Mike Wennen, Authority Member Al Boche, Authority Member Dick Pederson, Authority Member Members Absent: Others Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director Scott Johnson, Management Analyst Colby Johnson, South Washington County Bulletin APPROVAL OF MINUTES Authority Member Mike Wennen moved to approve the October 14, 2003 EDA Minutes. Gerry Weingartner seconded the motion and the motion carried unanimously. PROJECT UPDATES ED -03 -028 — A medical distribution company contacted the city about a possible 210 SF distribution center in the industrial park. Economic Development Authority - Minutes November 18, 2003 Page 2 ED -03 -029 — Staff was asked for information on the industrial park for a 10,000 SF manufacturing facility. ED -03 -030 — A wood manufacturing company asked the city for an information packet on the industrial park for a 20,000 to 35,000 SF facility. ED -03 -031 — A refrigeration systems company asked the city for information on the industrial park. They are looking for a site to build a 15,000 SF facility. PROJECT UPDATES Ryan Schroeder asked the EDA for direction on the Frattalone property. He informed the EDA that the ASPEN Grove, Frattalone, and Clear Channel property combined is of significant size and potential impact with the latter property alone about 40 acres. Development could occur anytime after 2005. The property is currently zoned residential. Staff has suggested a possible mix of housing and commercial on this property. Mayor Shiely and Council Member Cheryl Kohls had met with the proposed developer and discussed how to soften any project that may be developed on this property. Next, Mr. Schroeder asked the EDA what they would like to see on the property. The proposed developer did not think the original vision of a terraced development with smaller commercial buildings would work. Under the current concept drawing from the developer, the site would be clear cut. Mayor Shiely had some concerns about the proposed medium box commercial buildings that were next to each other and felt it needed to be softened even more. Ryan Schroeder also told the EDA that the developer would like some direction from the EDA so they would not need to go through a number of renditions of the site and extra costs. Glen Kleven asked if the city should contemplate intense commercial projects on this site. He thought this type of project would cause traffic problems and felt that an office campus or complex would be a better use on the property. Mr. Schroeder mentioned that people would need a destination to have any reason to drive back on the property and did not think office buildings would provide the incentive. He also mentioned that 113,000 SF of commercial development was reasonable under the traffic models used for the road system. Glen Kleven asked if the site was developable now. Mr. Schroeder informed the EDA that they are looking for direction for a future project and to discuss what is a reasonable use for the property. Mr. Kleven was worried about cutting down all of the trees because the city caught a lot of heat for the Kohls project. Mr. Kleven did not think a big box user would be a good fit for the site. Mayor Shiely thought small tenant box users would be a better fit for the site. Al Boche mentioned that if this project does happen it will cause traffic problems just like in some areas of Woodbury. Mr. Schroeder asked if a mixed use or urban village development would work on this site. Gerry Weingartner did not know if a high quality housing and commercial project would work next to the highway. Mr. Schroeder mentioned that this concept has worked in other areas of the Twin Cities. Jim Wolcott mentioned he is Economic Development Authority - Minutes November 18, 2003 Page 3 concerned about the traffic issues with this type of project and said that the project needs to be softened because it is the first thing people will see when they enter the city. He also asked if the roads in this area were built to handle this type of traffic. Ryan Schroeder informed the EDA that the traffic counts included up to 150,000 SF of additional commercial space. Jim Wolcott mentioned that the high traffic volume by the Kohls entrance will cause traffic problems. Gerry Weingartner agreed that a small bottleneck would form and cause traffic problems around Kohls. Al Boche mentioned building an old fashioned downtown area like Maple Grove. He also mentioned that parking is tight in this project and a small ramp may be needed. Dick Pederson thought the project should give businesses more exposure. Many people do not know about the city's business district. The project needs to be an attractive entrance to the city and traffic will be necessary to the project. Jim Wolcott explained that he understood traffic would be necessary for the project, but he does not want a high user on the site. He would rather see a nice restaurant or smaller commercial sites. He did not think that the city should rush into this project. Mr. Wolcott said that the city should concentrate on developing the Kohls site first and wait with any projects on this site. Mayor Shiely also mentioned that the city would be able t0 study the traffic patterns in the area. Mr. Wolcott said the project needs to be smaller, look nice, and be a quality project. Dick Pederson mentioned that the city needs the tax base and a quality project on this site would be a giant step forward. Al Boche also mentioned Richfield's new mixed use project that is a six story project with business condos, housing and commercial on the 1 St floor. Mike Wennen mentioned that restaurants would need to draw people to the area because the project would be in a dead end area. COTTAGE SQUARE Ryan Schroeder asked the EDA for the approval of a development agreement for Cottage Square. The approval would be subject to Council and attorney approval. The developer is comfortable with the senior housing component of the project. They expect to close around April of 2004. This project has not started the site design beyond concept level. The senior housing would consist of 56 assisted units, 84 independent units, retail, and office space. "Pay as you go" TIF funds would be used for the project. Under this TIF option, the developer pays the up front costs of the development and the city holds no development risk for the project. The city would initiate eminent domain if certain criteria are met for the project. There is currently a handshake agreement in place. Mayor Shiely asked Ryan Schroeder if any houses would be involved in the development. Ryan informed the EDA that no houses would be removed in the process. The purchase agreement would involve the mall, the New Moon Restaurant site, and the driving school site. The new project is proposed to have 60,000 SF of commercial and 200,000 SF of senior housing. The new project would include less retail, but it would be a more efficient use of the space. The new market value is projected to be $23 million for the proposed project. Under the proposal, the senior housing would be Economic Development Authority - Minutes November 18, 2003 Page 4 completed by December 31, 2005 and the commercial portion would be finished one year later. As estimate of $430,000 of CDBG block grant money from two funding cycles is proposed to be used for this project. The "pay as you go" TI F money will be used to get the property back to bare land at about $10 a SF with relocation and other costs included. An additional $200,000 would pay for existing assessments and streetscapes. 13 acres of runoff currently runs into the city storm water system from the mall site. Storm water ponding from this project would be held on site with a new holding pond. Mayor Shiely asked if the project would have an effect on the city's proposed storm water expansion. Mr. Schroeder said with the Cottage Square project, the city would need to buy 2 to 3 fewer acres for storm water ponding. Also, the relocation of the tenants would be the responsibility of the developer. Jim Wolcott asked if the minimum market value was correct on page 3. Mr. Schroeder informed the EDA that the senior housing would be payable in 2007 and the commercial portion would begin one year later. He also mentioned that Snyder's is proposing a stand alone building and they are currently proposing to leave a portion of the shopping center up during the project. Also, the senior housing project will pay taxes under the proposed agreement. Mayor Shiely said that the project fills an important need for senior housing in Cottage Grove. Glen Kleven made a motion for the EDA to approve a development agreement for Cottage Square Mall contingent on City Council and City Attorney approval. Dick Pederson seconded the motion. Al Boche abstained from the vote. The motion carried unanimously. BUSINESS BREAKFAST Jim Wolcott mentioned that Monday is a bad day for the event. He asked staff to see if another date would be possible for the event. Mr. Wolcott thought a Tuesday morning event would be great. Mayor Shiely mentioned that she liked the speaker format. Mr. Wolcott mentioned that the cities and chamber should have areas for their information at the event. GOLF OUTING Jim Wolcott thought the EDA should leave their fees at their current level and increase the amount spent on the participant gift. Mayor Shiely asked staff to include the East Ravine Planners on the mailing list for the event. Ryan Schroeder also mentioned that the city has added infrastructure contractors to the list. OAKWOOD COMMERCIAL SITE The purchase agreement is close, but not done. The restaurant anchor and letter of intent for the other portion of the site may be on the next EDA agenda. The city will net $1.4 million from this project and all of the money will go to the park trust fund. Economic Development Authority - Minutes November 18, 2003 Page 5 GROVE PLAZA They have started the fagade. The CG Tap interfund loan will be paid off in 5 to 6 years. US BANK The new access is off of a private drive. They will be responsible for the landscaping and will add a keystone wall and fence to match the other wall on 80 Street in 2004. Monument signs will be on all four corners of the intersection when the streetscape is finished. 1501 PROPERTY The parking lot has been paved. Everything else will be completed in the spring. KO H LS This project is currently two to three weeks ahead of schedule. Hardwood Ave. is completely paved. HAMLET STORM SEWER /PARK The city is currently working on a purchase agreement for ponding. WAG Farms currently has a residential property sliver off of 95 that is currently zoned R -5. The neighborhood is currently expecting storm water ponding in this area. Al Boche thought only single family housing should go in that area. Ryan Schroeder informed the EDA that in theory eightplexes could be built on the property. Mr. Boche said current residents are upset about the twinhome and townhome construction. Jim Wolcott thought no residential should be built in this area. The land might be worth more as industrial. Glen Kleven asked why the property was zoned R -5. Mr. Schroeder informed the EDA that apparently the zoning boundary was arbitrary. All members then agreed that the property should be used for commercial or industrial use. CLEAR CHANNEL Ryan Schroeder asked the EDA for concept approval to draft a purchase agreement. Clear Channel would build three new billboard signs in exchange the city would take title to 40 acres of property north of Belden Avenue for $1.00. The signs would have a masonry base and steel trusses. Gerry Weingartner made a motion for concept approval of the new billboard signs and to for the city to draft a purchase agreement. Mike Wennen seconded the motion and the motion carried unanimously. Economic Development Authority - Minutes November 18, 2003 Page 6 DEVELOPMENT UPDATE 80% of Cottage Grove residents do not go over 30% of their income for their mortgage payments. Building permit values have also increased for the city. The average market value for a new home in the city is probably around $300,000. Job growth is also up for the city, but wages have room to improve. MEDP No longer in existence CALENDAR Chamber breakfast on December 4 @ 7:00 AM at Tinucci's City Christmas Party on December 5 at River Oaks Subway Ribbon cutting to be determined Annual Business Recognition Breakfast January 12th COORDINATION AGREEMENT FOR CCE The CCE project was originally contemplated as an expansion project. There will be no additional benefits from the city. The city needs to subordinate to the mortgage company in compliance with the development agreement. Mike Wennen made a motion to accept the Coordination Agreement for CCE. Mayor Shiely seconded the motion and the motion carried unanimously. ADJOURN The EDA adjourned at 9:30 a.m. Respectfully submitted, Scott Johnson Management Analyst