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HomeMy WebLinkAbout2005-03-08 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES March 8, 2005 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 8th day of March 2005. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Shiely. RnLL CALL Members Present: Myron Bailey, EDA Vice President Gerry Weingartner, EDA Secretary /Treasurer Sandy Shiely, EDA President Mike Wennen, EDA Member Jim Wolcott, EDA Member Al Boche, EDA Member Members Absent: Glen Kleven, EDA Member Others Present: Ryan Schroeder, EDA Executive Director Howard Blin, Community Development Director Ron Hedberg, Director of Finance and Administrative Services Kim Anderson, South Washington County Bulletin Scott Johnson, Management Analyst APPROVAL OF MINUTES Jim Wolcott moved to approve the February 8, 2005 Economic Development Authority Minutes, and the November 2, 2004 and November 22, 2004 Economic Development Authority Special Meeting Minutes. EDA Member Wennen seconded and the motion carried unanimously. Economic Development Authority - Minutes March 8, 2005 Page 2 PRESBYTERIAN HOMES SUBSIDIES PUBLIC HEARING Ryan Schroeder informed the EDA that the Presbyterian Homes project on the Cottage Square site is moving forward with "pay as you go" tax increment financing (TIF) and $430,000 in CDBG grant money from Washington County. Mayor Sandy Shiely opened the public hearing, asked for comments from the public, hearing no comments she closed the public hearing. Jim Wolcott asked if the CDBG money had been processed by Washington County. Ryan Schroeder informed the EDA that the grant had been processed and the rest of the infrastructure for the project will be funded through "pay as you go" TIF. Mr. Wolcott asked if future CDBG money would be awarded during a competitive bidding process. Mr. Schroeder informed the EDA that CDBG grant money seems to be going to affordable housing projects and the City will know in a week whether or not they received CDBG money for a couple of trail and fencing projects. Jim Wolcott made a motion to approve subsidies for the Presbyterian Homes project. Gerry Weingartner seconded the motion and the motion passed unanimously. DEVELOPMENT UPDATE The Market Place project is now open. The developer for this project will build a similar project next to Menards. The UPS Store that may lease space in the new Shoppes at Gateway North is currently looking for a new franchisee to own the store. The ribbon cutting for this project will either be June 3 rd or June 10 The ribbon cutting was held for Oak Park Commons in Dr. Robert Kretchmer's office last week. A Carbone's restaurant will be opening up in Almar Village in the near future. Kath Oil has also applied for a new CUP to build a gas station at Almar Village. Staff is currently reviewing the site plan for this project. Construction will begin on a new Holiday gas station this spring at 70 and Hinton. The tenants at Cottage Square have been told that they must vacate the building by October of this year. The Kelco project was not approved at the last City Council meeting due to an incomplete application. Staff is still waiting to close on the American Agco and Zitzloff projects. A purchase agreement was never approved by the EDA for the Zitzloff project. Some soil problems exist with the site. Ryan Schroeder suggested including language to allow funds not to exceed $20,000 to fix the soil problems on the site. The soil issues were caused by a temporary pond that was constructed prior to the flume. Jim Wolcott made a motion to approve the purchase agreement with the changes suggested by Ryan Schroeder. Mike Wennen seconded the motion and the motion passed unanimously. EAST RAVINE Howard Blin informed the EDA that the AUAR will be ready in a month and it will be sent out to other public agencies and the public for comments. The East Ravine area will be able to accommodate up to 6,100 housing units. Staff is suggesting that 400 housing units be built per year, which is higher than the City's current level. Projections for neighborhood one north assume the market demand and interest rates stay the same. In seven years development is expected to move to the east side of Keats Ave. Economic Development Authority - Minutes March 8, 2005 Page 3 Mayor Shiely asked if the City is properly equipped staff wise to deal with the higher volume of housing units. Howard Blin admitted that this is a concern because demand is expected to be over 400 housing units per year. Jim Wolcott asked how the City could dictate which land is sold first. Mr. Blin said that the City will re -zone property when the utilities are ready to go. This timing issue has been discussed with the current land owners. Mr. Wolcott mentioned that opening up all of the land at once will allow competition on the land prices. He also mentioned that connecting to the new interceptor will be more costly on the west side versus the east side of the East Ravine. Mr. Blin agreed that limiting the supply of land will increase the prices, but the utilities need to be staged due to the cost. Ryan Schroeder also mentioned that the development of this portion of the City needs to be staged this way due to storm water issues. Al Boche asked about improvements to County Road 19. Mr. Blin said the improvements have not been synchronized with the City's development plans. This project is expected to be included in Washington County's 5 year CIP the next time it is drafted. Woodbury experienced similar circumstances with their growth. Mr. Boche also asked about the South Service Center and whether that will help with the improvements to County Road 19. Mr. Blin thought this will help with upgrading the road and Washington County is currently looking for an architect for this project. Myron Bailey asked if there were any height requirements for this project. Mayor Shiely said that there is a three story restriction on buildings because the Fire Department does not have a ladder truck that can reach over three stories. Jim Wolcott asked if much interest had been shown in the Cedarhurst area. Howard Blin said not much interest has been shown in the area because they are waiting for another nearby parcel to sell first. FOUNTAINS Ryan Schroeder asked for the EDA's input on what they would like to see in any community fountains, tower clocks, or other amenities to provide a sense of arrival and place. Myron Bailey suggested looking at a project in Blaine off of 35E that has a smaller fountain. EDA ANNUAL REPORT The EDA Annual Report was sent out to the 1,500 people on the mailing list in February. GATEWAY BOUNDARY AMENDMENTS Ryan Schroeder introduced an updated map of the Gateway district boundaries. The strip of property near City Hall, The Shoppes at Gateway North, and other parcels were added to the map. Mayor Shiely asked what the rationale was for the map. Mr. Schroeder explained that the map will be used to define the Gateway neighborhood and not to expand TIF. Mayor Shiely asked if the City Banners would also be extended. Mr. Schroeder informed the EDA that banners will be extended down Hadley and Grange. Also, a rock entry monument will be placed on the west side of 80 Street. EDA TERM LIMITS The EDA was given this information in preparation for a future discussion on this topic. Economic Development Authority - Minutes March 8, 2005 Page 4 GROWTH PARTNERS AWARDS These awards are handed out at the annual EDA Golf Outing. This year the awards will be expanded to include owners and architects. EDA REPRESENTATIVE FOR THE EAST RAVINE TASK FORCE Ryan Schroeder thanked Myron Bailey for attending the last East Ravine Task Force meeting. Howard Blin informed the EDA that there are only two more meetings scheduled for the task force. Jim Wolcott volunteered to be on the task force. Mike Wennen made a motion to appoint Jim Wolcott to the East Ravine Task Force. Gerry Weingartner seconded the motion and the motion carried unanimously. CALENDAR Mayor Shiely mentioned that the Spring Showcase has moved to the Armory and encouraged the EDA to attend. The City is currently taking nominations for Citizen of the Year and Special Recognition awards for volunteerism to the community. RESOLUTION REQUESTING THE CITY COUNCIL TO CALL FOR A PUBLIC HEARING ON THE ESTABLISHMENT OF TAX INCREMENT NO. 1 -13 AND REMOVING PARCELS FROM TAX INCREMENT DISTRICT NO. 1 -10. Ron Hedberg introduced a resolution to the EDA requesting the City Council to call for a public hearing on the establishment of TIF district 1 -13 and removing parcels from TIF district 1 -10. Mr. Hedberg explained that the flume was removed from 1 -10 to make everything contiguous in 1 -13. Only six years of increment generation remain on TIF 1 -10. The new TIF district will extend the life of the parcels. There is currently no projected deficit in TIF 1 -10. TIF 1 -13 will be used to extend 97 th , provide ponding along 95 and provide internal infrastructure for future projects. When the area develops, other improvements will be needed along 100 TIF District 1 -9 will be retired in 2009 and other TIF projects will also be back on the tax roles in 2011 providing for $20 million in taxable market value. The City Council hearing will be held on April 20 Gerry Weingartner made a motion to approve a resolution requesting the City Council to call for a public hearing on the establishment of tax increment No. 1 -13 and removing parcels from Tax Increment District NO. 1 -10. Al Boche seconded the motion and the motion passed unanimously. Jim Wolcott mentioned that there is a current movement at the State to not approve TIF districts. Mr. Schroeder said that the discussions do not usually include retroactive policies and this TIF change will occur before any new language takes effect. Creating a large TIF District will allow the City more flexibility because it takes time and money to create a TIF district. The City will need to give a presentation to Washington County to show the best and worst case scenarios for the TIF district. Mayor Shiely also pointed out that Cottage Grove has a minimal amount of land in TIF compared to other cities in Washington County. Economic Development Authority - Minutes March 8, 2005 Page 5 ADJOURN The meeting adjourned at 8:45 a.m. Respectively Submitted Scott Johnson Management Analyst