Loading...
HomeMy WebLinkAbout2010-12-14 EDA MinutesCITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES December 14, 2010 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 14th day of December 2010. CALL TO ORDER The meeting was called to order at 7:32 AM by EDA President Olsen. R()I I CAI I Members Present: 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 Myron Bailey, EDA President Members Absent: None Staff Present: Howard Blin, Community Development Director Robin Roland, Finance Director Ryan Schroeder, EDA Executive Director Ken Smith, Community Services and Communications Coordinator Others Present: APPROVAL OF MINUTES A motion was made by EDA Member Jurgens to approve the November 9, 2010 Economic Development Authority minutes. Seconded by EDA Member Patterson, all present in favor. Economic Development Authority - Minutes December 14, 2010 Page 2 DEVELOPMENT UPDATE / BR &E UPDATE / BUSINESS LEADS EDA Executive Director Schroeder gave the EDA a development update. He talked about Polar Service Center's requests for locating a facility in Cottage Grove. He mentioned they have an extremely low budget for the project and their building specifications are not up to our standards and that we have issues with their vision concerning paved parking lots. The City also has issues with their choice of a chain link fence. They want a reduction in the price of the land and we don't want to do that. Currently, the deal is on hold. EDA Member Jurgens asked if they could be sited somewhere else. Community Development Director Blin informed him we don't have any other sites at this time to accommodate them. LifeScience Alley Conference and Expo EDA Executive Director Schroeder mentioned that staff attended the LifeScience Expo on December 8, 2010 in Minneapolis. The City provided staff for the DEED booth from 2:00 pm to 5 pm. The cities of Woodbury, Brooklyn Park and Chanhassen also had staff at the booth during this time slot. We believe we got more bang for our buck at the MD &M conference and don't think we'll do this next year. Building Permits EDA Executive Director Schroeder stated that building permits through November 2010 totaled $47 million dollars. This result is a YTD increase of 13.6% over the same period in 2009. We are at 40 single family detached housing units for the year which is down 25% from even the past three years, however, due to the White Pines phase II project, total units are up 16% from the average of the past three years. Remodeling activity remains strong at $21 million dollars for the year which is roughly double that of a typical year. Public Safety / City Hall Project Executive Director Schroeder commented that the Public Safety / City Hall building is a one story building with a basement. He handed out architectural plans and went over the lay out highlighting the 40 space garage, interior offices with cubicles lit by sunlight. He mentioned there is talk of including a firing range but noted it's 3 % of a million dollar cost would change current plan costs of 16 million dollars. EDA President Myron Bailey mentioned that there will be a community meeting tomorrow night at 6:30 p.m. At this meeting concept drawings and initial preliminary cost estimates will be available. At the Council meeting the following evening, Council will be asked to approve the concept design and to put the project into the design development stage. Anyone interested in sharing their thoughts or opinions should attend one of the meetings. He mentioned that the current project cost of 16 million is below the cap of 17 million discussed earlier and that it is 66,000 square feet. He noted that it could grow or shrink depending upon the Council wishes. There was a brief discussion about the unexcavated space. EDA Secretary / Treasurer Poncin commented that every day you wait to build costs could go up because rates are very favorable right now. EDA Executive Director Schroeder said the building was very efficient with no throwaway space. Finance Director Roland mentioned that the quiet room is a code requirement and important to nursing mothers. EDA Vice President Olsen asked if the building will be green certified. EDA Executive Director Schroeder replied that we will bid for alternates to address green issues, perhaps geo- thermal. Economic Development Authority - Minutes December 14, 2010 Page 3 EDA Member Jurgens mentioned that geothermal gives payback in the future. Finance Director Roland stated that generators can be sized to cycle air circulation in summer because of 24 hour operation. Director Schroeder said Xcel Energy will do an efficiency run thru in the Fall. Finance Director Roland emphasized that the fitness room was a good way to promote employee health, and that we want an employee friendly environment. Cost Segregation In November, the EDA supported working with Werner Electric on a Pilot Cost Segregation project. EDA Executive Director Schroeder noted they currently do not have a need. He stated we are currently in discussions with an alternative business park owner to evaluate if there is an opportunity for them to benefit. We'll continue to evaluate. Commercial Industrial Business Leads EDA Executive Director Schroeder stated that as requested by the EDA the leads are in a new format. EDA Member Jurgens said he liked the new format. EDA President Bailey asked if Yokum Oil was the Holiday Gas station near Cub. Community Development Director Blin said yes and that he will follow up and try to encourage them. EDA President Bailey asked the EDA if there was something we (the EDA) would want to do to entice a store to open here (incentives). He directed staff to look at other communities to see what they've done to attract end users. Community Development Director Blin mentioned that stores want discounted land. EDA Vice President Olsen stated that Woodbury does a tour of the city with various business and school leaders with their business plan in hand. We could try this to get buzz. EDA Member Jurgens suggested we offer the tour to citizens as well. EDA Vice President Olsen said he would do incentive for certain stores. EDA President Bailey added these stores should be destination stores to draw more people to the City. EDA Vice President Olsen asked what our day time population is compared to Hastings. Community Development Director Blin said theirs is greater because of the Dakota County Government Center. EDA Executive Director stated we are doing a market study with the YMCA. Our current site includes Home Depot. B. Norris Square Marketplace Development / MAG EDA Executive Director Schroeder informed the EDA that on January of 2010 the EDA approved amendments to the then existing Minimum Assessment Agreement (MAG) on the Norris Square and Marketplace properties. The change was for one year, tax year payable 2011. At this time, we are asking the Board to grant an approval for another year, payable 2012. No forward progress has been made on the Marketplace portion of the project and we do not believe the board would wish to place an undue burden upon future prospects of that development. He noted that this was a pay as you go project. We are recommending a new one year MAG, freezing values at 2011 levels. Absent that action the commercial portion of the property would increase in a taxable value to $8.2 million (on the land that would be $26.90 sq /ft). EDA Executive Director Schroeder stated that Norris Square's position is: don't you have an obligation to pay us TIF and don't you have an obligation to work with us because we have done 1 /2 of what we said we would. Our position is because you are in default we only owe you a portion. But for the need for TIF the project wouldn't have gone forward. We believe we should give them something. We don't want to be anti - business. We asked them if they would sell the land 7.5 acres. They said yes and are also interested in doing an acute care facility. Economic Development Authority - Minutes December 14, 2010 Page 4 Finance Director Roland reviewed the TIF numbers include in their packet. It was stated that Norris Square believes they have completed the majority of the project. EDA Secretary / Treasurer Poncin stated he was ok with paying $205,000.00 for property taxes. EDA Vice President Olsen remarked the prudent thing to do is to give them the prorated TIF amount they want. EDA Executive Director said I'm hearing pay them $205,000 and prorate on the TIF value? EDA Vice President made a motion to establish minimum assessment agreement (MAG) value for another year and proceed with TIF of $205,000. EDA Member Poncin seconded the motion and all present were in favor. The Motion Carried. Commercial Zoning District Community Development Director Blin talked about the current locations of the commercial districts in Cottage Grove. Limited Business District (B -1). This is primarily an office district allowing office uses and medical clinics as permitted uses. Retail Business District (B -2). The B -2 district is the most prevalent commercial zoning district in the city. In addition to allowing all B -1 uses, restaurants and most retail uses are permitted. General Business (8 -3). This district is intended to include highway and auto - orientated businesses as well as "quasi - industrial and wholesale enterprises that do not need an industrial setting but have considerable customer contact." Planned Business (PB). The Planned Business district is located along West Point Douglas Road, north of Jamaica. The intent of this district was to allow a mix of retail and low intensity industrial uses, such office showroom or office warehouse uses. Neighborhood Commercial Business District (B -N). The B -N district was created in 2003 to give the City greater control over commercial developments adjacent to residential areas. It has a maximum area of five acres in size for any development and more rigorous screening and landscaping standards than that required in other districts. B -N zoning has yet to be applied to any area in Cottage Grove. Planned Development Overlay (PDO). This is a zoning district which would overlay an existing commercial district. The purpose of the PDO is to allow flexibility while retaining the allowed uses in the underlying zoning district. Director Blin mentioned that PUD allows residential and commercial development. We would have liked to do a large commercial area around 80 St. if we could do it again. He reviewed how Cottage Grove stacked up against other cities. Percentage of Total Area Planned Commercial Eagan 13 percent Woodbury 8 percent Chanhassen 6 percent Cottage Grove 5 percent Inver Grove Heights 3 percent EDA Vice President Olsen commented about the lack of development between 80 St. and Jamaica Ave. and asked what could be done. Director Blin stated that we would have to Economic Development Authority - Minutes December 14, 2010 Page 5 acquire many residential properties for commercial development though it would be prohibitively expensive. EDA Vice President Olsen Asked if the Cottage View Site helped. Director Blin replied yes, but now there would be three sites. Wheels for Travel EDA Executive Director Schroeder stated that the EDA previously approved a purchase agreement in the amount of $420,000 for the Wheels of Travel property at 6043 E. Point Douglas Rd. Evergreen will be conducting the relocation analysis at an estimated cost of $3000. One of the contingencies added to the purchase agreement by the EDA was a purchase agreement between the EDA and the South Washington Watershed District (SWWD) which results in the transfer of the property to the SWWD for their use as a storm water facility. We are requesting EDA approval of the agreement. EDA Secretary /Treasurer Poncin made a motion to approve the agreement which was seconded by EDA Member Patterson. All present were in favor and the motion passed. Development District Market Value Growth EDA Executive Director Schroeder stated that periodically, staff provides a status update of taxable market value creation from the point in time when the council initiated concerted business development efforts (1998 for the industrial park and 2002 for the Gateway redevelopment district). For example in 2003 the total market value of the Gateway North area was $15.8 million and that has grown to over five times that amount in the last seven years. Future opportunities and challenges include: Facilitate reuse or redevelopment of the Home Depot site. Propose an approach /future land use of the West Point Douglas; specifically the St. Paul companies, Rodeo and Hoyt Properties parcels. Market the NW area of the Business Park. Work closely with the County Rail Authority on station area planning for Langdon and Pt. Douglas. 8 th Annual Business Showcase EDA Executive Director Schroeder told the group to mark their calendars for the Thursday, March 24 Business Showcase taking place at the Cottage Grove Armory from 4:30 to 7:30 p.m. All are invited to learn more about local businesses. Admission is free and there will be refreshments and giveaways. The Chamber would like the EDA to purchase a sponsorship. EDA Vice President Olsen asked if there was a benefit. EDA Executive Director Schroeder stated we get to advertise River Oaks and make a good will gesture. The Committee decided on option 2 which included a $275 sponsorship with booth for the Golf Course and the Ice Arena. A motion was made by EDA Secretary / Treasurer Poncin to choose option 2 and seconded by EDA Vice President Olsen. All present were in favor and the motion passed. EDA Executive Director Schroeder commented that as of today they didn't have speaker for business breakfast at 3M. Economic Development Authority - Minutes December 14, 2010 Page 6 Miscellaneous EDA Executive Director pointed out the Sun Times article he included in the packet concerning an increase in housing values associated with rail stops. He also directed their attention to a letter from the Mayor that was responding to comments /suggestions from Paul and Pat Kotnour. They would like to sell their property on Military Road in Cottage Grove. C'_Al FNnAR The EDA was provided a calendar of upcoming events. EDA Vice President Olsen moved to adjourn the meeting. Seconded by EDA Member Remackel, all present were in favor. The meeting adjourned at 9:30 AM. Respectfully Submitted, Kenneth Smith Community Services and Communications Coordinator