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HomeMy WebLinkAbout2011-03-08 MINUTES CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES March 8, 2011 Meeting Held at River Oaks Golf Course Pursuant to due call and notice thereof, a regular meeting of the Economic Development th Authority was held at Cottage Grove City Hall, 7516 80 St. S., Cottage Grove, Minnesota th 55016 on the 8 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: APPROVAL OF MINUTES 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 DEVELOPMENT UPDATE / BR&E UPDATE / BUSINESS LEADS 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 th 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 nd draft report went to Council on March 2. 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 th 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 th putting together an all commission meeting in place of the monthly format. The 26 of March was brought up as a possible date. th 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 th deadline of April 8. 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 handed out by EDA Executive Schroeder. This year we have three homes being built. Howard mentioned he was meeting developers this afternoon. It was mentioned that notice will be given to Wheels of Travel to vacate by Friday for a 6/15/11 close with Watershed District right after. 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 th 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