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HomeMy WebLinkAbout2006-01-10 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES January 10, 2006 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 10th day of January 2006. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA Secretary /Treasurer Weingartner. Rni i CAI i Members Present: Gerry Weingartner, EDA Secretary /Treasurer Pat Rice, EDA Member Mike Wennen, EDA Member Jim Wolcott, EDA Member Members Absent: Myron Bailey, EDA Vice President Glen Kleven, EDA Member Others Present: Howard Blin, Community Development Director Joe Fischbach, Management Analyst Ron Hedberg, Finance and Administrative Services Director Tom Kaiser, Bulletin Newspaper Jessica Sandin, Management Analyst Ryan Schroeder, EDA Executive Director APPROVAL OF MINUTES A motion was made to approve the December 13, 2005 Economic Development Authority minutes, All Present in Favor. DEVELOPMENT UPDATE EDA Executive Director Ryan Schroeder gave the EDA a development update. There is now a signed development agreement with Graphic Resources. They will be located at the future Economic Development Authority - Minutes January 10, 2006 Page 2 intersection of 100 and 97 streets. City staff will be working on a real estate closing for this parcel and the Zitzloff Auto Body purchase sale. Staff hopes to have them both closed in either January or February. At the December 21, 2005 Council meeting, Council created an 1 -5 zone designation. It is intended to be considered for the land in the Industrial Park adjacent to rail. If adopted it would allow outside storage adjacent to and including the Auto Marshalling yard. This new industrial zone would allow Council the opportunity to further consider a proposal by Canadian Pacific Rail to develop a 40 acre parcel to be sold to Lyman Lumber for use as a lumber yard. If approved, Canadian Pacific Rail would provide all the infrastructure development and would provide for land development for non -rail users on the southern portion of their property. There are current discussions with potential users for portions of this property. Presbyterian Homes has taken ownership of the BP Amoco site in addition to the Goodyear site which they closed on last fall. The lease with the existing owner runs through 2008. It is anticipated that the business would operate until then unless Presbyterian Homes pursues a lease buyout. New Moon has agreed to vacate the premises effective March 31, 2006. Presbyterian Homes is continuing negotiations with Snyder's Drug Stores. No further activity has occurred with Demori's. Staff again asked the EDA to table any condemnation action until the property owner requests it. Grove Plaza continues to seek tenants for the second bay in the Starbucks building. They are also working toward the development of an approximate 3,000 square foot building on the western corner of the site (former Flemming /Rainbow fueling station). A quick serve restaurant was being considered for the site but parking became a constraint and they have dropped that prospect. An option /purchase agreement exists on the Cottage View site for commercial development. It is expected that it will substantially conform to the East Ravine Master Plan. A development proposal for the site is not expected to be submitted for several months. Staff has received a development proposal for a 3,750 square foot Bonngard's Family Meats store on the north side of the Almar Village site. Also, staff has been told Kath Oil plans to construct their gas station this spring. Other commercial activity: Cal Spas Pool and Billiards is now open at Point West Business Center. The shell is up for the Pine Grove Marketplace. Anytime Fitness is now advertising for memberships at the Shoppes at Gateway North. The Oral Surgery Center is open after a complete remodel of the daycare center at 7791 79 Street. Staff is expecting Met Council approval of the East Ravine plan in January with City Council consideration in February, possibly March. Commercial construction total for 2005 was $13,590,114. Residential construction was slightly down from previous years at 265 units. Per unit dollar value for detached housing continues to 2 Economic Development Authority - Minutes January 10, 2006 Page 3 climb at almost 10% above the prior year. The golf dome has sold. Developer is considering options. EDA Member Wolcott moved to table the Cottage Square condemnation to the February EDA meeting. EDA Member Wennen seconded the motion, All Present in Favor. RIVER OAKS INCOME STATEMENT Ryan Schroeder and Ron Hedberg updated the EDA on the operation of River Oaks Golf Course because the EDA is the debt issuance conduit. The economy, the Wakota Bridge project and the golf economy have negatively affected the golf course. For 2005 there is a projected net loss of $50,000. Revenues are projected to be up from 2004 at about 3.5% with expenditures reduced around 10% from the prior year. From an operating position the course did much better as the net loss included principal and interest payments of $365,833. A similar year is expected in 2006. 1501 SETTLEMENT AGREEMENT Staff is recommending approval of the settlement agreement upon approval and signature on the agreement by the General Partners of the 1501 Partnership. The agreement includes $5,500 for the trash enclosure and payment of $2,340 upon replacement of the trees. EDA Member Rice made a motion to approve the settlement agreement upon approval and signature on the agreement by the General Partners of the 1501 Partnership and authorize the addendum number 1 to the purchase and land exchange agreement with the 1501 Partnership. Seconded by EDA Member Wolcott, All Present in Favor. EDA OPERATIONAL ITEMS FOLLOW -UP Ryan Schroeder informed the EDA the Al Boche resigned from the Economic Development Authority. Several items were clarified and discussed by the EDA. Specifically: 1. Must the Mayor be on the Authority, and specifically as the President? No, any two council members can be commissioners on the board, and one council member will preside as President. Article 1, Section 4. BOARD. The Authority is governed by seven commissioners (the "Board'), at least two of whom are members of the Cottage Grove city council. 3 Economic Development Authority - Minutes January 10, 2006 Page 4 Article II, Section 2. PRESIDENT. The President shall preside at meetings of the Authority... The President shall be a Council member. 2. If there are two unfilled vacancies, will we have a quorum? Yes, four members are required for a quorum. Article Ill, Section 4. QUORUM. Four members constitute a quorum of the Board for the purpose of conducting business. 3. How many absences are allowed before automatic resignation? Three consecutive or four absences annually. Article Ill, Section 8. ATTENDANCE. Unexcused absence from three (3) consecutive regular meeting of the Authority or four (4) meetings in any calendar year shall be deemed to constitute a resignation of a member, and the vacancy thus created shall be filled thereafter. To be excused, an absence must be requested in writing by the affected member, granted by the Authority president and the Executive Director and filed with the city clerk. Absences by be excused for extenuating circumstances that prevent the member's attendance, such as business demands, state of health, or personal emergencies. 4. What are the EDA service terms? The terms are presently six year terms. Enabling Resolution 4. Term: The initial appointments shall be of 2, 3, 4, 5, and 6 years respectively. Thereafter, the Commissioners shall be appointed for 6 year terms except that the terms of the Commissioners who are members of the City Council shall coincide with their terms of office as members of the City Council or such as other terms as may be suggested by the Mayor and approved by the City Council. As noted in the December memo, a few years ago the City Council placed term limits of six year for service on Commission. That action did not specifically address EDA terms or terms of affiliate City organizations. It is anticipated that the Council intent is to place a similar limitation on any other similar situation including the EDA. In the case of the EDA specifically, it would be expected that as current terms expire Council would consider length of service to date in consideration whether or not to reappoint or to seek new membership on the Board. Staff recommends that the EDA have the same term limitations as the other commissions but that one, two, or three year terms should be considered. Council ordinance provides that all commissions (not inclusive of the Historic Preservation Commission and EDA) be limited to six years of service. In all cases but for the Planning Commission terms are two years. For the Planning Commission the terms are three years. The premise behind the difference is believed to be the additional time it takes for planning 4 Economic Development Authority - Minutes January 10, 2006 Page 5 commissioners to become well versed with the zoning ordinance and requirements of the position. The City Council authorizing resolution provides in paragraph four (4) that EDA commissioners shall be appointed for six (6) year terms. Following the discussion at your last Board meeting it is recommended that the EDA recommend to Council, consideration of a change in terms of either two or three years in length and that limitations on total length of service be also considered to conform to the six year limitation placed on Commission service. At least the change in term length would be expected to assist in recruiting for current and future Board vacancies. EDA Member Wolcott moved to recommend to the City Council that the current EDA opposes term limits, would like to see members serve for a minimum of three years and find a way to stagger the terms of the EDA members. Seconded by EDA Secretary /Treasurer Weingartner, All Present in Favor. BUSINESS RECOGNITION BREAKFAST Jessica Sandin informed the EDA the date of Monday, January 23 at 7:30 has been reserved for the Annual Business Recognition Breakfast. Dr. Tom Gillaspy, the state demographer, is scheduled to be the keynote speaker. All invitations were sent out in December. CALENDAR The EDA members were reminded of upcoming meetings and events. MISCELANEOUS BUSINESS ITEMS OPUS is actively marketing property in the Industrial Park. Initial indications suggest they have three different projects they are considering. ADJOURN EDA Member Wolcott moved to adjourn the meeting. EDA Member Rice seconded the motion, All Present in Favor, the meeting adjourned at 8:35 AM. Respectfully Submitted, Joe Fischbach Management Analyst 5