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HomeMy WebLinkAbout2008-05-13 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES May 13, 2008 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 April 2008. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Luden. Rnl I CAI I Members Present: Tony Jurgens, EDA Member Fred Luden, EDA President Paul Poncin, EDA Member Richard Remackel, EDA Member Sandy Shiely, EDA Vice President Gerry Weingartner, EDA Secretary /Treasurer Members Absent: Sarah Westall, EDA Member Staff 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 Others Present: Jon Avise, South Washington County Bulletin Ben Gathje of Culver's APPROVAL OF MINUTES A motion was made by EDA Member Luden to approve the April 8, 2008 Economic Development Authority minutes. Seconded by EDA Member Poncin, All Present in Favor. Economic Development Authority - Minutes May 13, 2008 Page 2 DEVELOPMENT UPDATE EDA Executive Director Schroeder gave the EDA a development update. On April 16 Council awarded the final bid to All Metro Glass, Inc. Work commenced on the 2008 pavement management project during the week of April 21 On April 16 Council approved funding for reconstruction of the US Bank retaining wall; contract was signed on May 12 and construction is projected for July. Ben Gathje of Culver's might stop by. On April 16 the City Council approved the final plat for Kohl's — Culver's addition which creates two commercial lots. The closing is scheduled for next Friday. Lehigh /Manning - in April Council approved the feasibility report and authorized plans and specs for the improvement project intersections, drainage and roads. Landscaping of the Jamaica Roundabout has begun. A media event is planned once the landscaping is complete. Werner Electric Minnesota intended to move in last week. They are planning a customer appreciation event on August 8 The ribbon cutting for Norris Square will take place today at 3:00 p.m. EDA President Luden asked about the dirt pile outside of Norris Square. EDA Executive Director Schroeder said more would be added than it would be leveled. EDA President Luden remarked that the fencing looked good. New home construction for the year is on the projected pace of 60 for the year with 23 permits pulled through April. EDA Executive Director Schroeder called it a banner year in commercial permits because of the School District construction activity. BELDEN QUIET ZONE EDA Executive Director Schroeder stated that the City Council created the Gateway North Tax Increment District on July 26, 2001. The first increment was received in 2003 meaning that the duration of this redevelopment district is through 2028. He asked for the EDA Committee for authorization to spend $25,000 of existing budget on improvement of the Belden rail crossing, in order to qualify the crossing for a train horn quiet zone. EDA Vice President Sandy Shiely made a motion to use the $25,000 for the Belden project. The motion was seconded by EDA Secretary / Treasurer Weingartner. EDA member Jurgens asked if there were any discussions about adding a four way stop sign at Hadley and Belden. EDA Executive Director Schroeder said no, and that no traffic analysis has been done. EDA Vice President Shiely stated that when the Wakota Bridge was under construction there was a traffic study done. EDA President asked if all were in favor of the motion to use the $25,000 for the project, all were in favor. SMALL TOWN FEEL EDA Executive Director Schroeder presented this item. He stated that during the past winter Cottage Grove did a community survey to identify if the public was responding positively to the vision statement the City had agreed upon. It was reported that what 21 % of respondents liked most about Cottage Grove was its small town feel. Because of this, Council directed City staff to focus on reinforcement and maintenance of the "small town feel." EDA Vice President Shiely asked how we compare to other suburbs when asked the same question. EDA Executive Director Schroeder said typically about 5% reported they believed their city had a small town feel. To augment the survey City staff gave their opinion on what a small town feel looked like. Some employees have lived and worked here over forty - years. EDA Executive Director Economic Development Authority - Minutes May 13, 2008 Page 3 Schroeder mentioned that Management Analyst Ken Smith had categorized the responses into different themes. He then asked the members what they thought. EDA President Luden mentioned that he brought up the small town feel memo to members of the Public Safety Commission. They responded with: know your neighbors, participate in National Night Out, safety is taken for granted — don't have to lock your doors, know public safety personnel by name, participate in volunteer activities, close agricultural ties. EDA member Jurgens mentioned that he bought his house because he could see a corn field out his front window. He stated that he and his wife are both block captains. EDA Executive Director Schroeder said that when the City does planning it will try and reflect on these items. EDA member Jurgens reflected that a small town feel implies a town square, but we don't have one... how do you build one? It was mentioned that Ramsey tried and was not successful. The feeling comes from people living and working in the same community, buy locally is part of the mentality; support your neighbor's business. EDA Vice President Shiely mentioned how folks put money into their homes in Cottage Grove instead of moving to bigger house. EDA member Jurgens asked if there is more sense of community in each neighborhood then the City as whole. City wide business celebrations was suggested by Vice President Shiely. She also, mentioned that there would be an Oakwood Park band shell and a fountain. EDA member Remackel stressed communication among neighbors at local businesses to make up for loss of front porch conversations. KOHL'S DEVELOPMENT AGREEMENT AMENDMENT EDA Executive Director Schroeder introduced Ben Gathje of Culver's. Mr. Gathje stated that he hoped to break ground on Monday May 19 He stated he will close on Friday and that he was scheduled to open on September 15, 2008 but that they hope to be ahead of schedule and will probably open on August 15, 2008. Mr. Gathje has operated the Stillwater store for four and a half years. Two actions are required by the EDA in relation to the development agreement; approve the Certificate of completion and release of forfeiture document and second: is to authorize the City Administrator and Finance Director to complete a re- appointment of the minimum assessment value for the Kohl's property as related to the new lot split and subsequent platting. EDA Paul Poncin made a motion which was seconded by EDA President Luden and EDA Vice President Weingartner. All present were in favor. WELCOME MONUMENT Public Works Director Les Burshten put together cost estimates to have a rock sign installed near the Gateway ponding area on City property at the south exit ramp on Highway at the 80 Street exit. Public works will place a mock up sign in the approximate location during the week of May 12 for comments and review from members of the EDA. EDA Executive Director Schroeder said the current stone is on land the City owned. With lettering, landscaping and lighting it could cost $50,000. He asked the members to give their opinion on the idea of the rock and the price. Members liked the idea but thought the current price was too high. EDA President Luden asked what the community benefit of such a project would be. EDA Executive Director Schroeder said it's similar to streetscaping. He brought up the idea of finding outside funding sources. EDA member Weingartner suggested we move the current rock to other side Economic Development Authority - Minutes May 13, 2008 Page 4 of the street. EDA Executive Director Schroeder said he would get a quote. The person who installed the rock is still in business. EDA member Poncin favors the monument. EDA Vice President Shiely said it was a good idea but the cost was too high. BUSINESS RETENTION /EXPANSION WORK PLAN At the April meeting of the EDA Committee, staff presented a first draft of proposed Business Retention /Expansion Program (BR &E) as directed by the City Council and in alignment with the EDA Strategic Plan goal #3. EDA Executive Director Schroeder asked the Committee for feedback on the plan, implementation or changes. EDA President Luden asked Director Schroeder what does Growth Partners brand stand for. EDA Director Schroeder stated it meant that we (the City) will be your partner in getting you to come to town, while you're in town we will provide all the assistance you need to be successful and even back off it that becomes necessary. We believe in letting you run your business. We believe that a 15,000 square foot business is just as important as a larger business, which is not always the case in other communities. EDA Vice President Shiely told the Committee that many businesses in Cottage Grove are complimentary of staff efforts and their willingness to help. It was mentioned that Werner Electric was only given a book of regulations when they approached another city to build their facility. EDA member Jurgens stated that it would be a good idea to follow up marketing letters with a call within 3 weeks to a month. EDA Executive Director Schroeder mentioned that the Cottage Grove Area Chamber of Commerce has expressed an interest in assuming a role in this BR &E effort. They are interested in the retail side of things. Their Economic Development Committee will be taking up the matter in the future. WORKFORCE TRAINING EDA Executive Director Schroeder stated that the Committee was interested in workforce training in the community. He explained the background on the City's past relationship with Inver Hills Technical College. Inver Hills had a satellite facility in Cottage Grove several years ago at Norris Square, but left when its rental space at Cottage Square Mall was torn down for a redevelopment. The issue was to try to bring Inver Hills back or some other educational institution to Cottage Grove. EDA President Luden stated that members of the Workforce Training Work Group felt that workforce readiness was a good thing to pursue. EDA member Poncin asked if Inver Hill CC taught nursing. EDA member Remackel stated it was hard to get into nursing school. His niece was on a waiting list. EDA Executive Director Schroeder mentioned that the next Workforce meeting will be May 28, 2008 at 1 p.m. at Cottage Grove City Hall. This will be a continuous EDA agenda item to update the EDA members on the ongoing discussions with Inver Hills. PUBLIC HEARING ON LEASE REVENUE BONDS /ICE ARENA EDA President Luden motioned to open the public hearing which was seconded by EDA member Remackel, approved by all in favor. Finance, Administrative and Resource Director Hedberg told the committee that they were conducting a public hearing on the issuance of Lease Revenue Bonds for the financing of the Ice Arena expansion and considering resolution Economic Development Authority - Minutes May 13, 2008 Page 5 authorizing a lease purchase transaction to finance the acquisition, construction and equipping of the Ice Arena Project. At the April 8 th EDA meeting the EDA called for a public hearing to be held May 13 The public hearing is required prior to issuing this type of tax exempt bonds. The financing of the Ice Arena expansion project will be completed with the issuance of the Lease Revenue Bonds. Under this proposed financing, the EDA and the City of Cottage Grove would enter into a lease agreement where the City will lease the facility from the EDA. The EDA was asked to consider the attached resolution providing for the issuance of the lease revenue bonds and the preparation of the lease agreement with the City of Cottage Grove for use of the facility. The EDA Lease Revenue bonds will be repaid from rents received from the City of Cottage Grove. The City of Cottage Grove will operate the Ice Arena and will collect ice time rentals form the School District, the CGAA and others, in addition to levying an annual property tax levy to support the arena. Once passed the EDA would attend a special meeting on Wednesday, May 21 at 6:30 p.m. to consider awarding the bond issue and entering into a lease agreement with the City of Cottage Grove. Finance, Administrative and Resource Director Hedberg stated that the resolution provides the authority to proceed in issuing up to $7 million in bonds and authorizes taking bids on the bonds and preparing the lease documents. The bonds are callable in 20 years 2017. EDA member Jurgens asked what the risks are. EDA Executive Director Schroeder stated that the City has a moral obligation to pay its lease. He also stated that because EDA is the conduit there is a small risk. EDA member Jurgens asked if the Ice Arena will be marketed for other uses. Yes, EDA Executive Director Schroeder replied, the new addition will have a dry floor as well and will be available to Eastview High School's hockey team and the Athletic Association. EDA member Jurgens suggested car shows, gun shows, and any event that has community feel. EDA President Luden asked if the City maintains injury insurance at the site. He was told yes by EDA Executive Director Schroeder. Finance, Administrative Resource Director informed the Committee that there would be a joint EDA and Council meeting next week May 21 EDA Vice President Shiely made a motion to close the public hearing it was seconded by EDA member Poncin. EDA member Weingartner made a motion to approve the resolution. It was seconded by EDA President Luden and approved by all. EDA GOLF TOURNAMENT UPDATE Management Analyst Joe Fischbach reported that six foursomes have already signed up for the event. Invitations to the tournament were mailed to 1,400 Cottage Grove Growth Partners contacts the first week of May. Management Analyst Joe Fischbach asked the committee for their opinion between two options. The first: a hat and ball marker and a subscription to Golf Digest Magazine, the second: a polo shirt (mustard, green and blue). EDA member Jurgens stated he liked the tan hat and thought it would be worn more. He also asked if there would be a hole in one contest. EDA Vice President Shiely asked if the hats came in different sizes. Joe replied no but that they were adjustable. A preliminary vote found three for the hats and three for the shirts. EDA President Luden asked Joe Fischbach to confirm the golf digest subscription. EDA member Jurgens asked if we could get additional sponsors and give both gifts away. CALENDAR Economic Development Authority - Minutes May 13, 2008 Page 6 The EDA members were reminded of upcoming meetings and events. They were reminded that Norris Square had its ribbon cutting today at 3:00 p.m. EDA President Luden said National Night Out is August 5 t " MISCELANEOUS BUSINESS ITEMS EDA Executive Director Schroeder included business articles and mentioned that the article about Wal -Mart was there because it mentioned Cottage Grove. ADJOURN EDA President Luden moved to adjourn the meeting. Seconded by EDA Member Poncin, All Present in Favor. The meeting adjourned at 8:40 AM. Respectfully Submitted, Kenneth Smith Management Analyst