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HomeMy WebLinkAbout2011-06-01 PACKET 04.A.i.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 6/1/11 PREPARED BY : Administration ORIGINATING DEPARTMENT Ryan Schroeder DEPARTMENT HEAD COUNCIL ACTION REQUEST Approve EDA minutes from the regular meeting of May 10, 2011 STAFF RECOMMENDATION - ' •• •, 1 BUDGET IMPLICATION BUDGETED AMOUNT ADVISORY COMMISSION ACTION DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ® ECONOMIC DEV. AUTHORITY 5/10/11 On i as] an•cell 111010111 kTA ramr --n ❑ MEMO /LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: minutes ADMINISTRATORS COMMENTS REVIEWED El El El El ACTUAL AMOUNT APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ P -- C e ity Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER http: // 156 .142.9.3 /intranet/Administration Forms /City Council Action Form - Read Only.doc IN I IV961 ag01 i r,TCI4ECI74IT1= ECONOMIC DEVELOPMENT AUTHORITY MINUTES April 12, 2011 Cottage Grove City Hall, 7516 80 St. S. Cottage Grove, MN 55016 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 12 day of April 12, 2011. CALL TO ORDER The meeting was called to order at 7:32 AM by EDA President Myron Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Craig Patterson, EDA Member Tony Jurgens, EDA Member Justin Olsen, EDA Vice President Paul Poncin, EDA Secretary/Treasurer Richard Remackel, EDA Member Members Absent: Chris Reese, EDA Member Staff Present: Robin Roland, Finance Director Ryan Schroeder, EDA Executive Director Ken Smith, Community Services and Communications Coordinator Jennifer Levitt, City Engineer Others Present: Jon Avis, Bulletin Newspaper Mark Meyer, Pres Homes APPROVAL OF MINUTES A motion was made by EDA Secretary/Treasurer Paul Poncin and seconded by EDA Member Economic Development Authority - Minutes April 12, 2011 Page 2 Richard Remackel to approve the March 8, 2011 Economic Development Authority minutes. All present were in favor. DEVELOPMENT UPDATE / BR &E UPDATE / BUSINESS LEADS EDA Executive Director Schroeder informed the EDA that Home Depot and a developer were actively negotiating toward some kind of purchase agreement. A purchase price between $3 & $4 million was being discussed. There has not been any announcement associated with Cottage View. We have heard from the owner of the Cottage View site. He is interested in selling all 50 acres but the property buyer is interested in only 20 acres at this time. EDA Member Reese asked if the property is under any kind of grocery restriction like Target is. EDA Executive Director Schroeder said they were not. There is a company interested in placing a large distribution facility in the Industrial (Business) Park. We are currently competing with other cities but we believe we are the number one or two site. We expect a decision to be made in 3 to 4 weeks. We were contacted by DEED about a possible project in the Business Park. The Rush Nightclub has a new brokerage team that is dealing with the site. We believe it is a total take down and have had conversations about rezoning the area. EDA Member Jurgens asked about the Post Office, if they could move to a more accessible location. EDA Executive Director Schroeder informed the EDA that the Post Office will look for retailer to cover back office side /sorting with the incentive to bring bodies into the retailer's store. They will not be paid. EDA President Bailey mentioned the Woodbury Post Office set up. It was revealed that the square footage at the current distribution center is around 17,000. EDA Member Jurgens mentioned that the Holiday Gas Station in Woodbury has a Post Office in it and that maybe we could do that. EDA Executive Director Schroeder stated we could put it in the letter to them. 8811 & 8819 Environmental Recommendation EDA Executive Director discussed a correspondence from Braun Intertec outlining additional investigation measures and associated costs as part of the property acquisition process that will delay the closing. Some petroleum — related compounds were found in the soil that could cause a deduction on the purchase price of about $30,000. The EDA was asked to sign off on the delays. EDA Member Jurgens made a motion to accept the delays which was seconded by EDA Member Reese. All present were in favor. The City expects to close between now and the 20 of April. 2011 River Oaks Golf Course Premium Membership (Update) EDA Executive Director Schroeder told the EDA that River Oaks had implemented the Premium Membership project discussed at the last meeting. EDA Member Jurgens asked how individuals get their cards. He was told they must go there to pick them up. Finance Director Robin Roland informed the EDA that she is working on the credit card aspect for the beverage cart. EDA Executive Director Schroeder informed the EDA that the City has been contemplating about what to do with the project. Finance Director Robin Roland told the EDA that they have proposed: Economic Development Authority - Minutes April 12, 2011 Page 3 Elimination of the default provision due to lack of commercial development. Although it is still to the developer's best interest to build the commercial portion and receive more tax increment because if they do, they are not required to build it to receive TIF payments. TIF payments are therefore restricted to a prorated percentage of the available TIF. This prorated percentage uses the original tax capacity value base of $347,500 and the current tax capacity value of the designated properties. For example, total TCV for the properties for Taxes Payable 2011 is $219,495, so the proration percentage would be $219,495/$347,500 or 63 %. The principal amount of the Note is reduced from $2,400,000 to $2,229,292 because the amount of the Available Tax Increment in 2009 and 2010 was insufficient to meet the scheduled payments for those years. Each subsequent year stands alone and there's not recouping lost increment in future years even if there's extra increment. There is also no interest on the note. Each subsequent year stands alone and there's not recouping lost increment in future years even if there's extra increment. There is also no interest on the note. In addition to the aforementioned $205,000, the developer will be paid 100% of the available TIF for 2009 and 2010 because the minimum taxable values assumed in the development agreement were met and taxes were paid by the developer on those minimum values. The assumptions of the TIF note payout were met for those two years. EDA Member Poncin asked if we paid the $205,000 yet. EDA Executive Director Schroeder stated that we are waiting for the agreement. Staff requested that the EDA review and approve the agreement. EDA Member Poncin made the motion to approve the agreement. He asked if we can suspend default provision. Finance Director Roland said she wouldn't recommend it. She wants market to drive issue. It's in their best interest to develop commercial property there. EDA Vice President Olsen asked about the impact of the Pres Homes marketing efforts so far. He was informed that they have switched marketing companies but nothing has happened yet. It was suggested we meet with Christensen Company in Las Vegas at ReCon. EDA Member Jurgens asked Mark Meyer of Pres Homes if anyone had approached them lately. He was told no. EDA President Bailey inquired about additional beds. Mr. Meyer said they will start fund raising campaign, they need money to do it. The EDA was informed that they are 95% occupied. There was a brief discussion about maintenance of the corner. The motion to approve the agreement was seconded by EDA Vice President Olsen. All present were in favor and the motion passed. ICSC Attending will be Myron Bailey, Paul Poncin, Justin Olsen and Ryan Schroeder. An update will be given at next meeting. Economic Development Director Position EDA Executive Director Schroeder informed the EDA that Community Development Director Howard Blin has moved on and they would be hiring an Economic Development Director. So far they have received 35 applications of which 25 were qualified and 10 would be interviewed. Economic Development Authority - Minutes April 12, 2011 Page 4 A new director could be in place by mid May. Jennifer Levitt, City Engineer was heading Community Development in the interim. CALENDAR The Calendar was handed out and reviewed by the EDA MISCELLANEOUS BUSINESS ITEMS EDA Vice President Olsen asked the EDA about the all commission meeting. EDA Member Reese thought it was good and would like to see more discussions and less talking to. EDA Member Poncin suggested each commission come with one issue to share. EDA President Bailey suggested we do it spring and fall. Some members said the meeting felt rushed. EDA Member Remackel said the length of the meeting was fine with him and that he supported twice a year meetings. EDA Vice President Olsen brought up the time capsule and said the History Channel wants to be involved as a possible story. EDA President Bailey stated he would like the list of companies he highlighted for the group to visit in Las Vegas distributed to the members to see if anyone knows of contacts within the companies. He suggested the City hire someone to market several City -owned properties. EDA Member Patterson told the EDA about a similar service he uses to market real estate. It was suggested to include the PO location and do an appraisal on this building. There was a discussion about the Library. EDA Executive Director Schroeder said nothing has been decided. EDA President Bailey noted the Library wants to stay in its current location but the County wants it to move. EDA Executive Director Schroeder believes they want to co- locate with the community center. EDA Member Jurgens stated he wanted to be on any county task force. EDA Vice President Olsen suggested having conversations about what you all want to see happen. EDA Executive Director Schroder mentioned that an older Council wanted an upper end restaurant, seemed more interested in aesthetics then price. Various companies contacted the City but they didn't meet the criteria. EDA Vice President Olsen stated he like the hotel idea and said he trusted staff's judgment but we need to market it. EDA Member Remackel thinks marketing is a good idea also. EDA Executive Director Schroeder stated the site is worth what someone will pay when asked about appraisal. He also stated there were two access points. EDA Member Chris Reese made a motion to market city owned properties with an RFP. This motion was seconded by EDA Member Jurgens. EDA President Bailey mentioned that on April 28 the City would be doing a developer's forum at River Oaks Golf Course. There would be lunch, and a possible bus tour of all available residential properties in Cottage Grove. EDA Member Jurgens mentioned future meeting topics, Shop QA clicks, HRA update. It was mentioned to know about PSCH options involving the EDA beforehand so they know what's going on. EDA Member Reese asked about the Health East Building. He was informed that collection company is in the space. EDA Vice President Olsen moved to adjourn the meeting. Seconded by EDA Member Patterson all present in favor. The meeting adjourned at 8:50 AM. Economic Development Authority - Minutes April 12, 2011 Page 5 Respectfully Submitted, Kenneth L. Smith Community Services and Communications Coordinator