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HomeMy WebLinkAbout2006-08-08 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES August 8, 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 8th day of August 2006. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Paul Narpaul, EDA Member Paul Poncin, EDA Member Pat Rice, EDA Vice President Gerry Weingartner, EDA Secretary /Treasurer Mike Wennen, EDA Member Jim Wolcott, EDA Member Members Absent: Others Present: APPROVAL OF MINUTES Bulletin Newspaper representative Joe Fischbach, Management Analyst Ron Hedberg, Finance & Administrative Services Director Jessica Sandin, Management Analyst Ryan Schroeder, EDA Executive Director A motion was made by EDA Member Wolcott to approve the June 13, 2006 Economic Development Authority minutes. Seconded by EDA Member Weingartner, All Present in Favor. DEVELOPMENT UPDATE EDA Executive Director Schroeder provided the webpage directory and gave project updates. The owners of the vacant land at 6800 West Pt. Douglas have been told the City was not going to make an offer, however, they are free to make us an offer and if it is reasonable it will be presented to the EDA. There is a meeting scheduled with representatives of the owners and staff for later in the week. EDA Executive Director Schroeder also updated the EDA on the following sites: • The Frattalone parcel planners are working on concepts that include senior housing and office space. • The Aspen Grove owners are working on a commercial outlot and residential development. • The City Council authorized plans and specs and a feasibility report for Lyman Lumber at their June 7, 2006 meeting. • The Shoppes of Gateway North ownership is currently discussing leasing out the 1,300 square foot space next to Jimmy Johns. ■ In Grove Plaza, the nail salon is moving to the Starbuck's building and the sports bar is expanding as a result. • There is a purchase agreement on the G -Will Center. • Pine Grove Marketplace is now fully leased. • Market square has three bays available but is in conversation with possible tenants. • The Lyman Lumber project has started grading in the base for the road and the City Council will be awarding the bids soon. PHM COTTAGE GROVE, INC. HOUSING REVENUE BONDS EDA Executive Director Schroeder presented the most current site plan for the Cottage Square redevelopment as PHM is now proceeding toward redevelopment of the site. Included are about 150 units of Senior Housing along with four retail buildings and one office location. PHM is requesting that the City grant approval of a Housing Revenue bond to provide the mortgage for the project. The Revenue bond is proposed as a 20 year $30 million issuance. The City's full faith and credit is not at risk with this obligation, however, and repayment of the bonds is from revenues derived from the project. Issuance of the Housing Revenue Bonds requires a public hearing which is anticipated at the regular Council meeting of September 6, 2006. EDA Members discussed their recommendation to the City Council to proceed with the financing opportunity. A motion was made by EDA Member Wolcott to recommend to Council the scheduling of the public hearing to allow for consideration of Housing Revenue bonds to finance the PHM project. Seconded by EDA Member Poncin, All Present in Favor. BLUE VESSEL LLC DEVELOPMENT AGREEMENT EDA Executive Director Schroeder presented the development agreement for Blue Vessel, the ownership entity for ICHOR Creative Stone, which is a provider of stone products for the 2 construction industry. The 42,338 square foot building will be located on 3.278 acres on Hemingway just north of 100 Street. The minimum market value of the project is $1,905,210. The EDA land investment is $357,010. The EDA is selling this parcel for $292,748.61 for a write down to the developer of $64,261.89. This land write down will be recovered by the EDA through Tax increments generated by the project over the remaining life of TIF district 1 -13 (six years). A business subsidy public hearing will need to occur at the EDA in September. A motion was made by EDA Member Pat Rice to approve the development agreement between the EDA and Blue Vessel LLC. Seconded by EDA Member Wennen, All Present in Favor. KAPPA PROPERTIES LLC DEVELOPMENT AGREEMENT EDA Executive Director Schroeder presented the development agreement for Kappa Properties, which is a two phase multi- tenant spec building located just north of ICHOR. The first phase is a 20,000 square foot building located on 3.915 acres parcel. The second phase is a 23,500 square foot building. The completed project will have a value of $1,957,500. The EDA land investment is $426,300. The EDA is selling this parcel for $386,284 for a write down to the developer of $43,016. This land write down will be recovered by the EDA through Tax increments generated by the project over the remaining life of TIF district 1 -13 (six years). A business subsidy public hearing will need to occur at the EDA in September. A motion was made by EDA Member Pat Rice to approve the development agreement between the EDA and Kappa Properties. Seconded by EDA Member Wennen, All Present in Favor. PROPOSED 2007 BUDGET Finance Director Ron Hedberg presented the proposed 2007 EDA budget for consideration. There are three items that are proposed as budget additions: $3,500 for Atkinson Cemetery design services, $20,000 for Atkinson Cemetery streetscaping improvements and $34,000 for installation of rock signs on the east and west sides. The ED Trust Fund budget provides funding for commercial development and redevelopment opportunities that may arise in 2007. In addition, both this budget and the EDA budget reflect the $30,000 transfer from the Trust Fund to the EDA fund that began in 2002. A motion was made by EDA Member Weingartner to approve the proposed 2007 EDA and Trust Fund budgets. Seconded by EDA Member Poncin, All Present in Favor. SUMMARY OF THE HOUSE - SENATE CONFERENCE COMMITTEE REPORT ON EMINENT DOMAIN EDA Members were provided with a summary on the new limits of eminent domain from the House - Senate Conference Committee Report to read at their leisure. TAXWATCH NEWSLETTER EDA Members were provided with a copy of the TaxWatch Newsletter to read at their leisure. Topics of interest include: local and state tax spending, new laws and eminent domain. 3 EDA GOLF TOURNAMENT UPDATE Jessica Sandin provided EDA members with an update on the upcoming EDA Golf Outing. The 11 th annual golf tournament is being held on Tuesday, August 15 at River Oaks Golf Course. Currently over 100 people are registered and the sponsorships are up from last year. The gift this year is a golf polo shirt with the Growth Partners logo on the sleeve. CALENDAR The EDA members were reminded of upcoming meetings and events. MISCELANEOUS BUSINESS ITEMS None. ADJOURN EDA Member Wennen moved to adjourn the meeting. Seconded by EDA Member Pat Rice, All Present in Favor, the meeting adjourned at 8:07 AM. Respectfully Submitted, Jessica Sandin Management Analyst 4