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HomeMy WebLinkAbout2009-01-13 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES January 13, 2009 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 13th day of January 2009. CALL TO ORDER The meeting was called to order at 7:32 a.m. by EDA President Myron Bailey. Rnl I CAI I Members Present: Myron Bailey, EDA President (appointed on this date) Tony Jurgens, EDA Member Justin Olsen, EDA Vice President (appointed on this date) Paul Poncin, EDA Secretary/Treasurer (appointed on this date) Richard Remackel, EDA Member Sara Westall, EDA Member Members Absent: None 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 Jesse Swenson, Management Analyst Others Present: Rich Malloy, Washington County HRA Bill Lightner, Washington County HRA APPROVAL OF MINUTES A motion was made by EDA Secretary /Treasurer Poncin to approve the November 12, 2008 Economic Development Authority minutes. Seconded by EDA Member Jurgens, All Present in Favor. ELECTION OF OFFICERS Economic Development Authority - Minutes January 13, 2009 Page 2 Executive Director Schroeder informed the EDA that they must elect new officers. He informed them that the President and Vice President must be Council Members. The Board nominated and approved Mayor Myron Bailey as EDA President and Council Member Justin Olsen as EDA Vice President. EDA Member Paul Poncin was nominated and approved as Secretary / Treasurer, All Present in Favor. DEVELOPMENT UPDATE EDA Executive Director Schroeder gave the EDA a development update, which was a year -end review. Overall the permit levels were at a decent pace in 2008 compared to past years. It is possible that in 2009 Rainbow Foods will remodel the interior and exterior of its building. There is nothing new at the Home Depot site. The US Bank sign will be finished by the end of January. EDA President Bailey noted that the Pine Tree Valley kiosk is going up at this time. BUSINESS RETNETION & EXPANSION UPDATE Management Analyst Swenson explained that staff has identified over 250 potential commercial and industrial businesses to relocate or expand their operations in Cottage Grove. The list includes plastic, printing, and printed circuit board companies in Minnesota and Wisconsin. A mailing will be sent by EDA President Bailey sometime in the next month. FORECLOSURE PROGRAM Rich Malloy with the Washington County HRA gave a presentation on the federal Neighborhood Stabilization Program. The City of Cottage Grove has been recognized from a formula as being eligible to receive $642,000 from the federal HUD Program funds. If the program is approved the requirements include: activities must benefit households earning no more than $97,100 for a family of four (120% AMI) or no more than $40,450 for a family of four (25% of funds); home buyer counseling; state to audit program every 6 months; establish new housing or accomplish activity within 4 years. A program option that the County HRA would prefer to follow in Cottage Grove is to acquire, rehab, and sell the foreclosed home. Cottage Grove has approximately 200 foreclosed homes in 2008 and each of these homes have been identified, and from that city staff has identified a possible 20 homes in town that could be rehabbed and resold, which would be done 2 or 3 homes at a time; the area is south of 80 Street and West of Jamaica. The overall purpose of the program is to improve the housing stock and housing market in Cottage Grove, and the city staff would like to move away from the foreclosed homes becoming rental units. Bill Lightner from Washington County HRA explained that the program would get rid of slack houses on the market and get people into these homes. The counseling that the HRA offers to homebuyers would feed into them buying one of the rehabbed properties. EDA Secretary /Treasurer Poncin asked if the program would help subsidize down payments on homes. Mr. Malloy commented that the program is not for that direct purpose. EDA Vice President Olsen asked which realtors and lenders would be able to partner with the HRA. Mr. Malloy confirmed that the HRA would work with any available in Cottage Grove and EDA Secretary /Treasurer Poncin noted that he would give a list of lenders from the area to Mr. Malloy. EDA Member Jurgens asked if there would be a preference to Cottage Grove Economic Development Authority - Minutes January 13, 2009 Page 3 contractors for the rehab of the homes. Mr. Malloy confirmed that quotes would be needed from contractors and he would advertise the opportunity to contractors in Cottage Grove. As part of the program it is requested that Cottage Grove partner with the HRA in the program by authorizing spending $150,000 from TIF District 1. EDA Secretary /Treasurer Poncin moved to allocate $150,000 in TIF funds for the Neighborhood Stabilization Program. Seconded by EDA Vice President Olsen, All Present in Favor. CONSULTING CONTRACT PROPOSAL, FEDEARL STIMULUS PACKAGE In 2009 Minnesota Congressman Oberstar will draft the new six year federal highway bill and staff proposes that the EDA consider the merits of a federal submittal of the CR19 bridge reconstruction project. EDA Executive Director Schroeder explained that the EDA is requested to enter into a contract with Lockridge Grindal for consulting services in pursuit of a Federal highway bill authorization for a cost of $48,000 from the EDA Trust Fund. If approved the City would subsequently receive $30 to $35 million in funding for the bridge reconstruction project. EDA President Bailey commented that the project would be beneficial and important in Cottage Grove because of the proximity to a possible mass transit station, homeland security (specifically for 3M), and it would be located near a county park. Also, the reconstruction project would be beneficial to the Cottage View site and Langdon area. EDA Vice President Olsen moved to enter into a contract with Lockridge Grindal for the cost of $48,000. Seconded by EDA Secretary /Treasurer Poncin, All Present in Favor. MARKETING IDEAS 2009 EDA Executive Director Schroeder presented marketing ideas for 2009, including what we sell and who we sell to. Staff is looking for EDA direction at next month's meeting. EDA President Bailey wants EDA members to think about how we market the City. RIVER OAKS GOLF COURSE 2008 UPDATE EDA Executive Director Schroeder gave an overview of River Oak's performance in 2008. The golf market is down overall and River Oaks has been affected by the market, plus the Wakota bridge, and Hastings bridge, although the course is doing as well as other public courses in the metro area. EDA Vice President Olsen asked who we compare ourselves to and asked staff to identify the different ways the golf course is marketed. Management Analyst Smith explained that we do compare River Oaks to 26 other public golf courses and at next month's meeting will have an agenda item on the different ways the course is marketed. EDA Member Jurgens asked about the debt service and what the payback will be. EDA Executive Director Schroeder explained that the two bonds will end in 2010 and 2012. ANNUAL BUSINESS RECOGNITION BREAKFAST Management Analyst Swenson asked for staff direction in picking the keynote speaker for the March 24 Annual Business Recognition Breakfast held at 3M. EDA Vice President Olsen moved to choose Christine Clifford Beckwith as the keynote speaker. Seconded by EDA Member Remackel, All Present in Favor. 6 th ANNUAL BUSINESS SHOWCASE Economic Development Authority - Minutes January 13, 2009 Page 4 EDA Secretary /Treasurer Poncin asked that this year if we sponsor with a booth that staff put together a board of what the EDA is and what it has accomplished. EDA Secretary /Treasurer Poncin moved to sponsor the business showcase at the $275 level. Seconded by EDA Member Remackel, All Present in Favor. CALENDAR The EDA members were reminded of upcoming meetings and events. EDA Vice President Olsen asked if the members were interested in changing the date and time of the EDA meetings. A decision was made to keep the meeting date and time the same. MISCELLANEOUS BUSINESS ITEMS EDA Executive Director Schroeder proposed that for the 2009 EDA golf tournament the golfers receive a handmade wine stopper, with the CG logo on the top, as the premium item. EDA members were in favor of this premium choice. ADJOURN EDA Secretary /Treasurer Poncin, moved to adjourn the meeting. It was seconded by EDA Vice President Olsen. All present were in favor and the meeting adjourned at 9:20 AM. Respectfully Submitted, Jesse Swenson Management Analyst