Loading...
HomeMy WebLinkAbout2006-10-10 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES OCTOBER 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 October 2006. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Bailey. Rni i CAI i Members Present: Myron Bailey, President Pat Rice, Vice President Gerard Weingartner, Secretary /Treasurer Paul Poncin Mike Wennen Jim Wolcott Members Absent: Paul Narpaul Others Present: EDA Executive Director, Ryan Schroeder. Ron Hedberg, Finance and Administrative Services Director Howard Blin, Community Development Director Neil Belscamper, Administrative Assistant Kieren Sell, South Washington County Bulletin APPROVAL OF MINUTES Wolcott moved to approve the September 12, 2006 Economic Development Authority Minutes. Rice seconded. Motion carried unanimously. BUSINESS ITEMS Development Update Schroeder said there were a total of five commercial permits submitted in September, two of them for new construction, and the total commercial activity in the City was projecting out Economic Development Authority - Minutes October 10, 2006 Page 2 around $20 million for 2006. BP Amoco Lease Mr. Joseph Ambalathunkal from AJS Company, Inc. was in attendance to request assistance from the EDA because the lease to operate his business would expire in April 2008 and he would experience financial loss as a result. Schroeder said AJS Company is not the actual lease holder of the property, but is operating the BP Amoco operation on a sublease. Mr. Ambalathunkal said AJS Company has operated the business since 2004 and that they have two homes as security on the business loans. He acknowledged that some bad business decisions had been made, and now he was requesting that the EDA provide for either a lease extension provision or relocation assistance from PHM in any amended development agreement between PHM and the EDA. He stated that the EDA was providing assistance to PHM, a private company, for their project, and he was also requesting assistance. Mr. Bob Van Slyke from PHM stated that Mr. Ambalathunkal had leased the business operation from BP Amoco in 2004 and had been informed at that time of the potential redevelopment of the site. He stated that the terms of the current lease would be fulfilled. Rice said he felt the EDA should follow the staff recommendation to decline taking any action to add conditions to the amended development agreement with PHM in regard to AJS Company, Inc. Motion by Rice, seconded by Weingartner, to decline taking any action. Motion carried unanimously. Amendment to the PHM /PHS Redevelopment Agreement Schroeder stated that the establishment of the tax increment financing district took place in 2001, the site was identified for mixed -use senior housing in 2002, and PHM acquired the site in 2004. Being five years have elapsed since the establishment of the TIF district, none of the funding can be used on the commercial portions of the project. Schroeder said project costs are better known at this point, hence the need for the amended development agreement. Economic Development Trust Fund dollars would be used to provide for a suggested project debt coverage ration of 125 %, and the repayment of trust fund dollars would be at an interest rate of 6 %. The requested EDA action was for general direction on the renegotiated development agreement, and that it would be brought back for EDA consideration at the next meeting. Poncin moved. Wolcott seconded. Motion carried unanimously. Opus Northwest Development Agreement Schroeder said he was looking for general input for the proposed development agreement. It Economic Development Authority - Minutes October 10, 2006 Page 3 was a speculative project, he noted, and the property would have to close before infrastructure improvements began. Wolcott said he would like to see some assurance that the project be built out in a timely manner. Schroeder suggested an acceptable timeframe for construction would be building one in 2007 and building two in 2008. The requested EDA action was for direction on the development agreement terms, and that it be brought back for EDA consideration at the next meeting. Wolcott moved. Rice seconded. Motion carried unanimously. Jamaica Roundabout Schroeder said this was about a $3 million dollar project, with $1 million dollars coming from MnDOT. Other funding sources would be MSA funds and assessments. Wolcott questioned whether MSA funds were available. Schroeder replied that advanced spending of MSA funds was common. Assessment credits would also be considered for properties that had been assessed for improvements back in 2000. He noted that significant lighting and landscaping improvements would be part of this project. Blin described the general layout, including lighting and landscaping concepts. Poncin voiced concerns over the amount of truck traffic that would be traveling through the roundabouts and whether this was being considered in the designs. Blin stated this was being factored into the designs and they were aware of need to design aprons with this in mind. Calendar Schroeder noted that the next EDA meeting would be November 14, 2006, and the 3M Business Breakfast would be on March 26, 2007. ADJOURN Rice moved to adjourn. Wennen seconded. Motion carried unanimously. Respectfully submitted, Neil Belscamper Administrative Assistant