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HomeMy WebLinkAbout2008-09-09 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES September 9, 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 9th day of September 2008. CALL TO ORDER The meeting was called to order at 7:32 a.m. by EDA President Luden. ROLL CALL Members Present: Tony Jurgens, EDA Member Fred Luden, EDA President Paul Poncin, EDA Member Richard Remackel, EDA Member Members Absent: Sandy Shiely, EDA Vice President Gerry Weingartner, EDA Secretary /Treasurer Sara Westall, EDA Member Staff Present: Howard Blin, Community Development Director Ron Hedberg, Director of Finance & Administrative Services Ryan Schroeder, EDA Executive Director Ken Smith, Management Analyst Jesse Swenson, Management Analyst Others Present: Bill Simoni, Marathon Petroleum / Eco. Deve. Committee Member for the Cottage Grove Area Chamber of Commerce APPROVAL OF MINUTES A motion was made by EDA Member Poncin to approve the August 12, 2008 Economic Development Authority minutes. Seconded by EDA Member Remackel, All Present in Favor. DEVELOPMENT UPDATE Economic Development Authority - Minutes September 9, 2008 Page 2 EDA Executive Director Schroeder gave the EDA a development update. New home construction is up for the fourth consecutive month over the same period in 2007 with our year- to -date performance (69 units) exceeding the year -end total for the prior year (67 units). Per unit values are continuing to decline as well as the size of the houses. EDA President Luden asked that staff start tracking the number of houses for sale in Cottage Grove and bring that data back to the EDA each month. Community Development Director Blin stated the average number of days a house is on the market in Cottage Grove is back to a 100 -day period except for foreclosed homes which stay on the market longer. BR &E UPDATE EDA Executive Director Schroeder presented a new benchmark concept for commercial projects that includes City participation. The benchmark matrix formula includes: building value per square foot, lot cover percent, hourly wage rate, hourly benefit rate, full -time equivalents, and priority industry sector. Currently the City requires $45 /square foot in building value and would like 20 to 25 percent lot coverage. The minimum hourly wage rate is $13.50. This is not an average wage calculation based on total wages divided by total employees, but is a minimum standard for wages for all full -time equivalent employees. The hourly benefit rate includes pensions and medical benefits. The full -time equivalent position includes the number of current positions the company brings to the City and the number of new positions that will be created. EDA President Luden and EDA Member Jurgens suggested that FTE should be calculated at 32 hours per week, and two 20 hour positions should not equal one FTE. EDA Member Jurgens also suggested that there should be more weight given to the hourly rate and FTE and less to building value and lot coverage. EDA Executive Director Schroeder acknowledged that this matrix was only a screening tool to focus on who should receive City participation, and also that as a screening tool the matrix could change. EDA Member Poncin noted that in some City industrial parks restaurants have been built to accommodate the industrial park employees. These are usually hamburger and sandwich restaurants. EDA President Luden asked that public buildings be added to the example portion of the matrix. Management Analyst Swenson presented a second BR &E update regarding the amount of marketing materials that have been mailed in 2008 to prospective developers, retailers, real estate companies, etc. In total approximately 2400 businesses have received materials from the Cottage Grove EDA (Growth Partners). EDA President Luden asked the group to think about how we should market Cottage Grove and what makes this community better than others. Staff will continue to contact prospective businesses that are interested in opening or relocating in Cottage Grove. CALENDAR The EDA members were reminded of upcoming meetings and events. ADJOURN EDA President Luden moved to adjourn the meeting. Seconded by EDA Member Poncin, All Economic Development Authority - Minutes September 9, 2008 Page 3 Present in Favor. The meeting adjourned at 8:45 AM. Respectfully Submitted, Jesse Swenson Management Analyst