Loading...
HomeMy WebLinkAbout2007-06-12 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES June 12, 2007 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 12th day of June 2007. CALL TO ORDER The meeting was called to order at 7:35 a.m. by EDA Secretary /Treasurer Weingartner. Rni i r-n i i Members Present: Gerry Weingartner, EDA Secretary /Treasurer Tony Jurgens, EDA Member Sarah Westall, EDA Member Jim Wolcott, EDA Member Members Absent: Myron Bailey, EDA President Paul Poncin, EDA Member Pat Rice, EDA Vice President Others Present: Howard Blin, Community Development Director Joe Fischbach, Management Analyst Ryan Schroeder, EDA Executive Director Kenneth Smith, Management Analyst Jesse Swenson, Management Analyst APPROVAL OF MINUTES A motion was made by EDA Member Wolcott to approve the May 8, 2007 Economic Development Authority minutes. Seconded by EDA Secretary /Treasurer Weingartner, All Present in Favor. 1 Economic Development Authority - Minutes June 12, 2007 Page 2 INTRODUCTION OF NEW EDA MEMBERS EDA Executive Director Schroeder introduced new EDA members, Tony Jurgens and Sarah Westall. DEVELOPMENT UPDATE EDA Executive Director Schroeder gave the monthly development update. The next phase of the Norris Square project includes 33,000 square feet of retail and restaurant space that was approved at the June 6 th City Council meeting. The Preserve at Cottage Grove, the first of the East Ravine subdivision developments, will go to the June 20 City Council meeting for approval of the plans and specs. The 103 Street Bridge Reconstruction Project construction dates have changed from late September 2007 to October /November 2007 and April /May 2008. Acquisition of the Joe -Bob Property has been delayed due to issues with a past deeded easement to MNDOT. There will be a mid July bid awarded for the Southridge Point infrastructure project. Residential permit activity continues to lag past years with a five month total through May of 33 new homes compared to a year -to -date since 2001 typically at about 100. RIVER OAKS MARKET COMPARISON /OPERATIONS ANALYSIS /BUSINESS PLAN Over the last few years the River Oaks Golf Course operation has trended downward with the general market decline. Comparisons were conducted within the golf industry, and the findings were that our golf operation is outperforming the market. Golf Manager, Bruce Anderson, has established a business plan for the golf course that includes introducing changes to the operation in order to create additional revenue opportunities. By 2010/2012 the debt on the course will be paid off, and by 2013 the course will be debt free adding significantly to the bottom line. EDA Member Wolcott listed several thoughts that he has regarding the course, which include the beverage cart attendants availability, hole 10's sign, hole 5's tee placement, a long wait for food in the club house at the hole 9/10 turn, and change the meal /drink specials. EDA Secretary /Treasurer Weingartner asked about the 3M lease on the back holes at the course. EDA Executive Director Schroeder will have the EDA look at the lease next year, as the renewal is in 2010. PROPOSAL FOR DEVELOPMENT OF AN ATHLETIC FACILITY Materials for a proposal for development of Advance Fitness, a public /private partnership with the City, were presented to the group. The proposed facility would include a gymnasium, pool, a track, batting cages, cliff climbing, a wellness center and other amenities. The total size of the facility is 106,604 square feet and Advance Fitness is requesting a 12 -acre parcel from the City. In the proposal Advance Fitness is requesting 2 Economic Development Authority - Minutes June 12, 2007 Page 3 that the City waive all city fees, $1 million for site improvements, money for the outdoor pool, money for soil corrections (a total of $6.5 million), and in return Advance Fitness would give Cottage Grove residents a discount on facility fees. Issues that need to be addressed include: 1. Not enough cash flow for the project 2. The City would need an exit strategy Comments from EDA Members: - Advance Fitness' projections of Cottage Grove household enrollment of 50 to 60% seem high. - Why should the City subsidize a private entity? - The facility could be like a community center for the City. - The City would have a lot of liability for the project. EDA STRATEGIC PLAN DRAFT The EDA provided staff with feedback on the plan as well as the Annual Report presented at the meeting. 2007 EDA GOLF TOURNAMENT UPDATE Jesse Swenson gave the EDA updated registration numbers thus far for the 2007 event. r-ni I=NnAP The EDA members were reminded of upcoming meetings and events. on_iniiRN EDA Member Wolcott moved to adjourn the meeting. Seconded by EDA Secretary /Treasurer Weingartner, All Present in Favor, the meeting adjourned at 8:35 AM. Respectfully Submitted, Jesse Swenson Management Analyst 3