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Home My WebLink About2007-12-11 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES December 11, 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 11 th day of December 2007. CALL TO ORDER The meeting was called to order at 7:31 a.m. by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Tony Jurgens, EDA Member Paul Poncin, EDA Member Pat Rice, EDA Vice President Sara Westall, EDA Member Members Absent: Gerry Weingartner, EDA Secretary /Treasurer Jim Wolcott, EDA Member Others Present: Howard Blin, Community Development Director Joe Fischbach, Management Analyst Ron Hedberg, Director of Finance & Administrative Services Ryan Schroeder, EDA Executive Director Ken Smith, Management Analyst Jesse Swenson, Management Analyst APPROVAL OF MINUTES A motion was made by EDA Vice President Rice to approve the November 13, 2007 Economic Development Authority minutes. Seconded by EDA Member Poncin, All Present in Favor. DEVELOPMENT UPDATE Economic Development Authority - Minutes December 11, 2007 Page 2 EDA Executive Director Schroeder gave the EDA a development update. Southpoint Ridge/White pines, a 41 unit senior assisted living facility has begun digging at the lower plain of the development. Culvers Restaurant is supposed to have its construction plans in by December 14, 2007. The 2008 pavement management moved ahead on December 5 th after the City Council authorized the project and preparation of plans and specs. The transportation plan at the County Road 19 interchange with Highway 61 will go to Council in January 2008. An east /west county road alignment is possible at Highway 61. Werner Minnesota's wall panel construction began in November and the storm pond construction's bid award, held in early December, was significantly below the engineers estimate. The Council authorized an early bid package for the ice arena for the precast panels and long span steel portion of the project. There is a potential developer to reconfigure the former Walden Woods subdivision north of 65 and east of Hadley. The City put together a state bonding request of $2.5 million to improve storm ponding and green areas associated with the Gateway North redevelopment district, along with infrastructure components associated with the 80 Street and Keats Avenue bridges. The US Homes assessment appeal is scheduled for December 17/18. The commercial /industrial permit values are to date 50% higher than the previous five to six years on average because of the Werner Minnesota, Hemingway Business Center, 80 Street Commons, White Pines, and Norris Square developments. The total number of residential permits is 62, which is the second to lowest since 1983, although the average home value is estimated at $450,000. Total permit comparisons indicate that 2007 is off by 11 % from past years. EDA Member Jurgens asked what is happening with the commercial area of Norris Square and EDA Executive Director Schroeder indicated that a possible anchor is a fitness center, and other facilities include a possible drug store. EDA Member Westall informed City staff that the Hemingway Avenue in the Business Park does not appear on any web based driving /direction maps. Community Development staff will look into this. HOUSING FORECLOSUERS This item was brought before the EDA for direction to City staff. In Minnesota from September 2006 to September 2007 foreclosures are up 183 percent, which are 1 in 1,500 households. In comparison Nevada has 1 in 185 households, Vermont has 1 in 61,000, and North Dakota has 1 in 17,000. In Cottage Grove the foreclosure trend is among homes valued at $180,000 - $220,000. Foreclosures are anticipated to have a moderating impact upon near term market value growth in neighborhoods within which foreclosures are prevalent. EDA Member Jurgens asked for Council awareness to this issue and EDA President Bailey noted that the Council has enacted delays on some future projects. EDA President Bailey asked if there are any areas in the City that are available to build multi - family facilities and EDA Executive Director Schroeder noted that the East Ravine has that kind of availability. EDA Member Poncin asked what the penalties are for unpaid City utilities. Finance Director Hedberg said that each month there is 1.5% interest added to the bill and at the end of the year if the utility bill is certified to the County a $75 administrative fee is added. ON Economic Development Authority - Minutes December 11, 2007 Page 3 PROPERTY SALE LETTER OF INTENT Staff brought to the EDA a letter of intent for a proposed hotel project east of Hardwood Avenue by the Gateway North First Addition. The letter of intent is a non - binding agreement prefacing a purchase agreement negotiated over the next 90 days. The hotel plan shows 82 parking spaces, the building is 4 stories tall (52 feet), and has a proposed 83 rooms. EDA Member Jurgens asked if there would be any restaurants or bars in the hotel and EDA Executive Director Schroeder noted that there would not be, and in regards to amenities that it would be similar to the Country Inn & Suites hotel. RIVER OAKS GOLF COURSE FISCAL UPDATE Finance Director Ron Hedberg presented a financial update on River Oaks Golf Course. Year - to -date the golf course is up 3.4% from 2006 to 2007, and the clubhouse revenues are up 10.8 %. The 2007 expenses are up $44,840 with a net loss of 3.2% from 2006. Maintenance and Clubhouse expenditures have increased since 2006 by 7.2% and 6.9% respectively because of additional fertilizer, personnel costs, and responding to storm damage. River Oaks will continue to hold the line on expenses in 2008. River Oaks' debt will be paid off by 2013. EDA Member Jurgens noted that the Hastings Bridge replacement in 2020 could affect future golf and banquet business. CALENDAR The EDA members were reminded of upcoming meetings and events. A motion was made by EDA Vice President Rice to cancel the January 8, 2008 meeting. Seconded by EDA Member Westall, All Present in Favor. MISCELANEOUS BUSINESS ITEMS EDA enabling resolution and term limits for EDA members (info only) Star Tribune article on housing market (info only) St. Paul Business Journal article on S &C MN Bank Community Development Director Howard Blin noted that S &C Bank has been purchased by Lake Area Bank and the bank's development in Almar Village will move ahead. ADJOURN EDA Vice President Rice moved to adjourn the meeting. Seconded by EDA Member Jurgens, All Present in Favor, the meeting adjourned at 8:45 AM. Economic Development Authority - Minutes December 11, 2007 Page 4 Respectfully Submitted, Jesse Swenson Management Analyst