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Home My WebLink About2011-03-02 PACKET 04.A.i.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # Lj DATE 3/2/2011 PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Approval of Jan. 4, 2011 EDA minutes STAFF RECOMMENDATION Approve EDA minutes BUDGET IMPLICATION BUDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACTION DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ® ECONOMIC DEV. AUTHORITY 2/8/11 SUPPORTING DOCUMENTS ❑ MEMO /LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: Minutes ADMINISTRATORS COMMENTS REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® ❑ ❑ ❑ ❑ ❑ City Administrator Date COUNCIL ACTION TAKEN: 56APPROVED ❑ DENIED ❑ OTHER http: // 156 .142.9.3 /intranet/Administration Forms /City Council Action Form - Read Only.doc 10 ECONOMIC MINUTES January 14, 2011 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at Cottage Grove City Hall, 7516 80`" St. S., Cottage Grove, Minnesota 55016 on the 11th day of January 2011. CALL TO ORDER The meeting was called to order at 7:35 AM by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Tony Jurgens, EDA Member Justin Olsen, EDA Vice President Craig Patterson, EDA Member Paul Poncin, EDA Secretary/Treasurer Chris Reese, EDA Member Richard Remackel, EDA Member Members Absent: None Staff Present: Howard Blin, Community Development Director Robin Roland, Finance Director Ryan Schroeder, EDA Executive Director Joe Fischbach, Human Resources Coordinator Others Present: Jon Avise, South Washington County Bulletin APPROVAL OF MINUTES A motion was made by EDA Member Jurgens to approve the December 14, 2010 Economic Development Authority minutes. Seconded by EDA Member Reese, all present in favor. ELECTION OF OFFICERS Nominations were accepted for officers for 2011. EDA President Bailey was nominated by EDA Economic Development Authority - Minutes January 14, 2011 Page 2 Vice President Olsen for another term as EDA President. Seconded by EDA Secretary/Treasurer Poncin, all present in favor. EDA Vice President Olsen was nominated by EDA Member Jurgens for another term as EDA Vice President. Seconded by EDA Member Reese, all present in favor. EDA Secretary/Treasurer Poncin was nominated by EDA Vice President Olsen for another term as EDA Secretary/Treasurer. Seconded by EDA Member Jurgens, all present in favor. City Administrator /EDA Executive Director Schroeder will remain Executive Director. Finance Director Roland was nominated by EDA Member Jurgens for the position of EDA Assistant Treasurer. Seconded by EDA Patterson, all present in favor. DEVELOPMENT UPDATE I BR &E UPDATE / BUSINESS LEADS EDA Executive Director Schroeder presented the development update. Gateway District: The EDA had authorized and the Council ratified amendments to the current minimum assessment agreement and the development agreement for Norris Square /Marketplace. As approved, the MAG will remain at the pay 2011 values for pay 2012. Additionally, approved was payment under the note for the housing portion and reimbursement of apportioned TIF received from the project. The EDA will have a draft development agreement following these approvals either at the February or March Board meeting. Wheels for Travel: The EDA had authorized and the Council ratified purchase and resale of the Wheels for Travel property at 6043 East Point Douglas Road, The EDA closed on this property with the fee owner on December 30, 2010. On December 13, 2010 the South Washington County Watershed District (SWWD) Board approved purchase of the property from the EDA at the EDA's cost of acquisition including costs for the relocation consultant and relocation expenses not to exceed $10,000 (which is estimated at the top end of the relocation liability). The SWWD will be responsible for clearance of the property. A May 1 closing with the SWWD is anticipated. Rush /Rodeo: The EDA has been contacted with a solicitation of interest in acquisition of the former RUSH /Rodeo site (see enclosed). While it is an 18 acre site there are several development constraints resulting in an example development plan that show approximately 97,000 square foot of development opportunity. Several members of the EDA expressed concern regarding the condition of the building and the image that it may portray on the community. However, it was a consensus of the EDA that the asking price was too high to take any action at this time. If the asking price of the property was reduced the EDA would then bring it back to a meeting for discussion. Brier Progeny Group LLC: The City received a notice from the successor to Brickwell Community Bank which is foreclosing on the Bank Mortgage against the PRI property owned by the Brier Group (on 95 Street). The Economic Development Authority - Minutes January 14, 2011 Page 3 consent requires the Bank to provide the EDA with 30 days notice and an opportunity to cure. The bank is requesting waiver of the 30 day period. The consensus of the EDA was to not waive the 30 day period. Northern Tier Energy: On January 6, 2010 the new owners of the St. Paul Park refinery (fka Marathon Petroleum) hosted a meet and greet for the City Councils of Cottage Grove, St. Paul Park, and Newport. The owner, Northern Tier Energy, is a start up organization with corporate offices in Ridgefield CT. The SPP facility is intended to be their hub at which they anticipate hiring 60 to 90 additional employees in the near term. This group also owns all the SuperAmerica brand stores. They are looking for ways to redevelop that brand. EDA President Bailey, EDA Vice President Olsen and staff indicated that the meeting went very well. The new team has already frequented many Cottage Grove businesses. It is likely that there will be areas of partnership in the future. Year End Development Activity: 2010 ended with $49,057,319 in permitted construction activity for the year. We added a total of 89 housing units this past year (including 44 units at White Pines) with a total of 45 single family units. 1982 housing activity totaled 46 units, the lowest single housing count on record since 1970. As we have been predicting since early in the year we have a high water year in residential remodeling having experienced $21,859,873 in permitted activity. This results in the highest rate of remodeling activity since 2000 but for 2002 (which was during another recessionary period) which was at $24,208,524 in activity with the typical year over that span at about half that volume. EDA Executive Director also gave an update on business leads. HOLIDAY DECORATIONS DONATIONS UPDATE The City has received $1,860 in donation from residents and businesses for the holiday decorations. CALENDAR The EDA was provided a calendar of upcoming events MISCELLANEOUS BUSINESS ITEMS The EDA would like to see increased partnership between the EDA and the Cottage Grove Area Chamber of Commerce. Staff will be in contact with the Chamber and bring back some ideas. The EDA would like to meet at River Oaks and get an update regarding 2010 activities and performance. EDA President Bailey gave an update regarding the Community Center Task Force and the Public Safety /City Hall project. Economic Development Authority - Minutes January 14, 2011 Page 4 ADJOURN EDA Vice President Olsen moved to adjourn the meeting. Seconded by EDA Member Reese, all present in favor. The meeting adjourned at 8:50 AM. Respectfully Submitted, Joe Fischbach Human Resources Coordinator