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HomeMy WebLinkAbout2011-05-04 PACKET 04.A.i.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 5/4/11 PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Please approve the EDA minutes for January, February and March of 2011 STAFF RECOMMENDATION Approve minutes BUDGET IMPLICATION BUDGETED AMOUNT ADVISORY COMMISSION ACTION DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY 4/21/11 SUPPORTING DOCUMENTS ❑ MEMO /LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: minutes ADMINISTRATORS COMMENTS REVIEWED El El El El El El Ulty Administrator -YC�6 /I( Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER ACTUAL AMOUNT APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ http: // 156 .142.9.3 /intranet/Administration Forms /City Council Action Form - Read Only.doc i t ECONOMIC r_ molf 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 / 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 Property 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 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 1011 Mel a 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 8` day of February 2011. CALL TO ORDER The meeting was called to order at 7:33 AM by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Tony Jurgens, EDA Member Justin Olsen, EDA Vice President Paul Poncin, EDA Secretary/Treasurer Chris Reese, EDA Member Richard Remackel, EDA Member Members Absent: Craig Patterson, EDA Member 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: A motion was made by EDA Treasures Paul Poncin to approve the January 11, 2011 Economic Development Authority minutes. Seconded by EDA Vice President Justin Olsen, all present in favor. Economic Development Authority - Minutes February 8, 2011 Page 2 EDA Executive Director Schroeder did not present the development update. However he did mention building permit levels. EDA President Myron Bailey stated that he attended a round table discussion on the Home Depot Site. One of the conclusions was that Home Depot needs to get real on their asking price. There was talk that to make the building viable to a buyer it might have to be split in half for several users. Currently, Home Depot is asking $4 million but many believe it should be $3 million. EDA Executive Director Schroeder stated that Home Depot was offered $2.5 million at auction. The question was put to the EDA if it would support public assistance for the Home Depot site if it came down to that. Members wanted to see a specific offer before they would say yes or no and directed staff to keep doing what it was doing. The issue of better site access off 80 street was discussed. EDA Executive Director Schroeder stated that Jones Lange LaSalle is looking for a 150,000 SF Distribution facility with space for 140 trailers, probably a $6 million taxable value on 15 acres for construction during the 3 rd quarter of 2011. Purchase of Property at 8811, 8819 West Pt. Douglas Rd. S. and 9537 Islay Ave. S. EDA Executive Director Schroeder mentioned that some years ago the EDA directed staff to look for sites on Langdon for development in the future. These sites are now on the market. They pay about $13,000 a year in property taxes. He asked the EDA if they were interested in purchasing these sites and suggested, if so, they should move sooner than later. The house is currently being rented and staff believes we should raise the house. EDA Member Jurgens commented that with that tract and the Public Works facility we would own a larger portion of land in the area. EDA President Bailey stated he thinks purchasing the sites would be the right thing to do so the City is a land owner when things develop. EDA Member Remackel made a motion to move ahead with larger pieces but not at $7 a square foot, come in at $300,000. EDA Member Jurgens seconded the motion and all present were in favor. YMCA Survey: Community Development Director Blin informed the EDA that a survey was conducted and the results were reported to the Community Center Task Force at their last meeting. He mentioned that is was a random telephone survey conducted within a five mile radius of proposed sites. 85% of people survey responded positively when asked if they would like to see the proposed Community Center operated by the YMCA and the City of Cottage Grove become part of the community. 75% said they would like to use City funds to support the project. The average property owner would pay about $20 per year to support the project. The proposed sites to locate the community center would be Presbyterian Homes Norris Square, County Service Center and the current City Hall site. According to Director Blin, the YMCA likes our site because it's the center of town. They also like Norris square site. They don't view it as wrong side of highway. It was noted that the Y needs space for outdoor fields which bodes well for the Ravine Parkway site. The City is having conversations with library personnel. According to the survey, people want a pool, gym and an indoor walking track. EDA Member Jurgens stated he liked the Norris Square site. Community Development Director Blin commented that residents don't see why they have to pay for a membership if the City is putting up the money. EDA Vice President Olsen asked about a resident discount. Mr. Blin said they don't offer that, they just Economic Development Authority - Minutes February 8, 2011 Page 3 waive the registration fee. EDA Executive Director Schroeder reminded the EDA to always add land costs to any equation. At the Council's Strategic Planning Session Oakwood Park was mentioned as a possible site. This presents interesting possibilities. Director Blin stated the key was to marry the YMCA to any future Library project. The land on our current site would be gifted. Lynn W. Olsen (CEO of The Innovation Group) Due to health considerations, the EDA decided not to ask Lynn Olsen to speak at the 3M breakfast, but perhaps ask him next year if he is up to it. EDA Member Poncin stated he would contact staff with a name of a speaker he enjoyed. Former Governor Pawlenty was mentioned. CALENDAR The EDA was provided a calendar of upcoming events. MISCELLANEOUS BUSINESS ITEMS EDA President Bailey informed the group that the City Council had a goal setting retreat the past weekend. He said it went well and lasted till almost 6:00 p.m. The top items the Council was interested in were: the new Public Safety / City Hall facility, the YMCA concept, business recruitment and retention, relations with 3M, and the commission appointment process. It was determined that staff would interview multiple candidates for each opening if possible. EDA Executive Director Schroeder stated he would provide the Cottage Grove Area Chamber of Commerce with an agenda and work with them. EDA Vice President Olsen asked if the Chamber had a work plan. EDA Executive Director Schroeder stated they have a one year plan. It was stated they should share that with the EDA. EDA Member Jurgens mentioned that Woodbury Chamber of Commerce was hiring a director. EDA President Bailey wondered if the Chamber works with the various tournaments in town to push people to local businesses with a map or something to help parents when deciding where to eat or shop. The next EDA meeting is at River Oaks Golf Course. ITi�lr•311�11 EDA Vice President Olsen moved to adjourn the meeting. Seconded by EDA Member Jergens, all present in favor. The meeting adjourned at 9:05 AM. Respectfully Submitted, Kenneth L. Smith Community Services and Communications Coordinator •` jij • ECONOMIC AUTHORITY MIATTES March 0 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 8th day of February 2011. CALL TO ORDER The meeting was called to order at 7:30 AM by EDA Vice President Olson. ROLL CALL Members Present: Craig Patterson, EDA Member Tony Jurgens, EDA Member Justin Olsen, EDA Vice President Paul Poncin, EDA Secretary/Treasurer Richard Remackel, EDA Member Members Absent: Myron Bailey, EDA President, Chris Reese, EDA Member Staff Present: Howard Blin, Community Development Director Robin Roland, Finance Director Ryan Schroeder, EDA Executive Director Ken Smith, Community Services and Communications Coordinator Bruce Anderson, Golf Course Manager Sue O'Connell, Banquet Manager Others Present: A motion was made by EDA Member Tony Jurgens and seconded by EDA Treasurer Paul Poncin to approve the February 8, 2011 Economic Development Authority minutes. All present were in favor. Economic Development Authority - Minutes March 8, 2011 Page 2 Public Safety / City Hall - EDA Director Ryan Schroeder informed the EDA that he had provided them with material related to the PSCH project. Included: were the latest Wold presentation, web page info and listings of various media outreach efforts. He also informed them that the City Council and public would have an opportunity to weigh in on design materials at the March 29` open house /Council meeting. Community Center — Community Development Director Howard Blin informed the EDA that the Community Center Task Force met last week and recommended we work with YMCA. The final draft report went to Council on March 2 "d . The Task Force recommends the Ravine Parkway site. EDA Member Jurgens asked about a referendum. EDA Vice President Olsen stated it was something he supported and that people are open to paying a little more in taxes for a community center. We are in consultation with School Board about the timing referendum with their elections in the fall. West Point Douglas Property — The EDA has authorized negotiations for a property on West Point Douglas. EDA Executive Director Schroeder stated that he needed EDA action to authorize him to accept $345,000 offer from property owner. EDA Member Remackel made a motion to go with the $345,000 offer which was seconded by EDA Treasurer Poncin. All were in favor. Norris Marketplace — Staff has informed the developer of recommended changes within the existing development agreement per discussions at the EDA. The two parties are attempting to set a meeting over the next week or two and it is expected that a recommendation for a new development agreement will be at your April meeting. Chamber Ex- Officio Representative — EDA Executive Director Schroeder informed the EDA that we are providing the Chamber with agendas and packet materials and have invited members to attend our meetings. 3M Business Breakfast — EDA Executive Director Schroeder informed the EDA that Bill Lester from the Metropolitan Sports Facilities Commission will be the guest speaker at the annual event. Maid Rite Franchise Search — EDA Executive Director Schroeder stated that the Maid Rite Corporation is in search of franchises for the Cottage Grove Market. El Sol Supermercado — EDA Executive Director Schroeder mentioned that the restaurant was open. A ribbon cutting is in the works. Business Showcase — EDA Executive Director Schroeder mentioned that the EDA is a sponsor for the Showcase which is March 24 `" (4:30 — 7:30). Economic Development Authority - Minutes March 8, 2011 Page 3 All Commission Meeting — EDA Executive Director Schroeder said this year the City will be putting together an all commission meeting in place of the monthly format. The 26" of March was brought up as a possible date. Volunteer Banquet — It was stated that the annual Volunteer Banquet will be held April 26" at River Oaks Golf Course. Members were encouraged to nominate a volunteer of the year by the deadline of April 8 t " ICSC — It was explained to the EDA that the body had authorized four representatives to attend the Las Vegas conference. EDA Executive Director Schroeder mentioned the City of Ramsey is taking three members of their City Council, two staff and one developer to provide staffing for their booth. Council Goals — 2011 Council Goals were handed out and reviewed by the EDA. New Metropolitan Council Representative — EDA Executive Director Schroeder stated that with our new Governor comes the opportunity to seat new members of the Metropolitan Council. The new representative for District 12 is Harry Melander. During the day Harry is the President of the Building Trades Council and is a former Board member of Washington County HRA. Building Permit Activity — Building permit activity was This year we have three homes being built. Howard afternoon. It was mentioned that notice will be given a 6/15/11 close with Watershed District right after. handed out by EDA Executive Schroeder. mentioned he was meeting developers this to Wheels of Travel to vacate by Friday for Business Leads Community Development Director Howard Blin informed the EDA he was in contact with a developer for Home Depot and Hollywood Video site. They want right in access to the site and they are going to look at our TIFF District. He mentioned that other big box stores are still interested in Cottage Grove and the Cottage View site in particular. There was some discussion about nudging the owner of site into selling a smaller piece. They were also interested in County Rd 19 and 70`" St. site. Mr. Blin mentioned he talked to Buffalo Wild Wings occasionally. EDA Executive Director Schroeder mentioned that there is a site search going on at the Industrial Park by an interested company. River Oaks Golf Course Finance Director Roland gave the EDA an update of River Oaks. She mentioned that there was a decrease in revenue in 2010 and a decrease in expenditures. She stated she believed it was incredible what Bruce and his staff has done with limited resources. She presented a plan to help the golf course. The $76,000.00 interest payment would be reduced to $28,000. She mentioned that the driver of cash deficit was the bond debt. The EDA still needs to fund the golf course. She informed the EDA that the reduction of the interest rate to 2% is one of the options. The EDA has loaned the golf course $1.4 million. The EDA needs this paid back to keep EDA Economic Development Authority - Minutes March 8, 2011 Page 4 viable. EDA Vice President asked Ms. Roland to explain the $121,000. She explained it comes from the differential between loans in one lump sum. She stated that there is deferred maintenance that has saved money. EDA Member Poncin asked what capital outlays were planned. Ms. Roland stated the intermediate rough mower, cart paths, banquet room, irrigation controller, grill room, mower utility vehicle, general club house maintenance and fairway mowers. Golf Course Manager Anderson mentioned that it will be $60,000 for maintenance expenditures and mowers. He talked to John Deere and was able to secure 8 pieces of equipment instead of just 2. It is RO's practice to look for those kinds of deals to save money. EDA Member Remackel asked if maintenance was adequate. Mr. Anderson stated the goal was to make it better each year. In 2010 rounds were down close to 4 %. He blamed a lot of this on Hwy 61 construction and a lot of rainy weekends. They had a great October but high gas prices could hurt. The EDA was informed that in 2012 the golf course would replace carts. EDA Member Jurgens asked where the capital came from for the new sign. Ms. Roland stated from the 2010 operating expenses. EDA Member Jurgens asked what the Course was doing to increase revenue. Mr. Anderson replied they were increasing the use of Social Media and using an outside firm to establish a new page and train staff. In 2010 they had a $25.00 /round rate for 18 — 25 year olds to bring in younger players who use social media. Mr. Anderson intents to cut back on print advertising. Mr. Anderson stressed membership retention by contacting them by email (7000) persons on the list and mentioned that the fish fry was well attended. EDA Member Jurgens asked how many season pass holders were there. He was told 90 — 95 all get unlimited golf. He was also told the patron card was not a money maker because tee times are easy to get. EDA Member Jurgens brought up the idea of a Premium Resident card: Membership card for all CG residents and employees; send application to all households through utility system with application for member card, emphasizing ownership /loyalty. In application we should get birth date, property address, name and email to build the data base. Membership advantages would be the marketing stuff and those advantages do not have to be known up front ... could be periodic specials for members only. 2011 card so it has to be renewed each year (in case people move). Can be good for non -golf premiums such as pro shop or bar to drive sales in those places. "You own RO" Also, with rise in gasoline prices might be marketing idea ... golf close to home.. Could there be different levels of owners like a choice reward program? This idea category needs to be implemented ASAP. Other ideas from Members included: • Partnerships with area hotels and restaurants (with a meal or night stay gain a discount at RO for instance) • Reduce the various tiers perhaps in favor of coupons or the membership in #2 • Support for $3500 social media idea • Employees should get same patron cards whether or not CG property owners (do employees know of this program ?) Including commissioners? • Concern re: mybackspin.com and groupon.com Economic Development Authority - Minutes March 8, 2011 Page 5 • Interest in Snow Golf Sat/Sun: 10 -4 • Boot Hockey, T,W,Th leagues at Bunker Hills? Concern for infrastructure cost • Support from EDA on Scanner for Credit Cards • RO to look into season Health Dept permit to allow for outside Bar -b -que • Get mobile earphones or PDA's for Bruce /Sue? Interest in doing so • Revisit goals for the course to set revenue targets? • Mention of bonus program which EDA did not know was in place. Do the targets need revisiting? • Can Rec offer Rec programming? Teaching kids to golf? • Hire Marketing professional? RO staff do not support the expenditure • Target minority populations beyond current efforts? • Opportunity to team with US Bench on marketing? • Support from EDA to retroactively reduce interest to 2% on internal financing with YE cash beyond $35,000 to principal. EDA Vice President Olson asked what our cost per round was. $17 with cart responded Mr. Anderson. There is a 20% mark up in the golf shop. EDA Member Olson asked if they had time market their golf course or do they need help. He was told to make more they would have to charge more. EDA Vice President Olson said goal should be to create additional demand. What are your goals and what steps are you doing to accomplish them. Mr. Anderson explained the employee incentive program. EDA Vice President Olson asked about the banquet side/ how would you make it more financially viable? Banquet Manager Sue O'Connell mentioned increase in social media usage and attending wedding shows. EDA Member Patterson asked if there were any type golf course comparison studies. Mr. Anderson replied he compares himself to other golf courses every year. New clients are kids and woman and Communication Coordinator Smith mentioned encouraging minorities to consider RO for their golf needs as they represent the largest growing population in the state. Mr. Anderson mentioned that having skiing on the Course in the winter does not pay. He gave info about boot hockey. He stated he partnered with golf venders to keep inventory fresh and up to date. The idea of portable scanners was discussed but was described as very expensive by Mr. Anderson. EDA Member Jurgens commented he attended wedding at River Oaks and things went very well. EDA Member Poncin made a motion to: 1. Revise the Golf Course projections to reflect the change to the 2% interest rate on the interfund loan and, 2. Change the interfund loan amounts in 2012 and 2013 to $100,000 each, and, 3. Peg the Golf Course cash to $35,000 at year end with anything in excess of that amount to be used to pay down the inter fund loan. Economic Development Authority - Minutes March 8, 2011 Page 6 Motion was seconded by EDA Member Patterson. All present were in favor. CALENDAR The EDA was provided a calendar of upcoming events. MISCELLANEOUS BUSINESS ITEMS None were reported. ADJOURN EDA Member Patterson moved to adjourn the meeting. Seconded by EDA Member Poncin all present in favor. The meeting adjourned at 9:49 AM. Respectfully Submitted, Kenneth L. Smith Community Services and Communications Coordinator