HomeMy WebLinkAbout2011-06-14 PACKET 03"•
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Cottage Grove City Nall, 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 Nall, 7516 80` St. S., Cottage Grove, Minnesota
55016 on the 10`" day of May, 2011,
CALL TO ORDER
The meeting was called to order at 7:30 AM by EDA President Myron Bailey.
ROLL CALL
{members Present: Myron Bailey, EDA President
Craig Patterson, EDA Member
Tony Jurgens, EDA Member
Paul Poncin, EDA Secretary /Treasurer
Richard Remackel, EDA Member
Members Absent: Chris Reese, EDA Member
Justin Olsen, EDA Vice President
Staff Present: Robin Roland, Finance Director
Ryan Schroeder, EDA Executive Director
Ken Smith, Community Services and Communications
Coordinator
Jennifer Levitt, City Engineer
Others Present: Craig Woolery, Public Safety Director
Perry de Stefano, Cottage Grove Area Chamber of Commerce
A motion was made by EDA Member Richard Remackel, and seconded by EDA
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May 11, 2011
Page 2
Secretary/Treasurer Paul Poncin to approve the April 12, 2011 Economic Development
Authority minutes. All present were in favor.
DEVELOPMENT UPDATE / BR &E UPDATE ( BUSINESS LEADS
EDA Executive Director Schroder talked to the EDA about Economic Indicators suggesting that
the local and national economy is turning a corner. He noted that the County values as a whole
have lagged Cottage Grove values over the 2005 -2012 period for existing properties
(12.29 %/11.02% = 11.52% difference). County wide tax levy rates should be anticipated to
grow in 2012 resulting from a 5.41% decline in EMV for pay 2012. We are led to believe that
we should anticipate flat or rising values for pay 2013.
Residential Developers Forum — City Engineer Jennifer Levitt, informed the group the City held
a residential developers form on April 28 at River Oaks Golf Course. She stated that if the City
needs to be flexible, to put it in print for them (lot sizes, fees, etc.), or decision makers won't be
confident going forward. The City alerted every owner in East Ravine & West Draw about the
event. They could provide information about their property. Some didn't have marketing
material or didn't supply any.
There was no building permit data available this month.
PSCH Schedule — The most recent schedule for the project / from the present (construction
drawings) to an Open House following bid authorization was handed out. EDA Executive
Director Schroeder stated the schedule could change and that we are headed toward Council
Approval on June 1 s`. EDA President Myron Bailey stated that they want to wrap up because
prices of materials are going up. EDA Executive Director Schroeder mentioned the City's desire
to use Best Value Contracting could extend the schedule.
The United States Postal Service informed Council at the April 20, 2011 meeting of their intent
to consolidate operations at the 95` Street Annex facility; making the East Point Douglas
property surplus. Staff has been in contact with owners /VP level representatives of adjacent
properties to inform them of potential development opportunities.
Retail Redevelopment Activity - Staff has been in contact with development interests moving
towards proposals within redevelopment areas. We will provide a verbal update to the extent
that we have new information. EDA Executive Director Schroeder handed out Cottage View site
materials and stated the initial site plan would impact the northwest side of property. EDA
Member Tony Jurgens expressed his desire to somehow save the drive -in theatre describing it
as an amenity that other cities don' have. EDA President Bailey stated the owner is closing it
down. He's not making money and asked where would we put it, we need new building. To
salvage the sign it can't be moved without substantial cost. All Facebook comments about
saving the theater were coming from outside CG. EDA Member Jurgens said we should
subsidize it. EDA Member Richard Remackel mentioned the projector is in bad shape and is
very expensive and didn't know if it would survive the move. EDA Executive Director Schroeder
mentioned that one of the site plans had a pedestrian screen that seated 50 — 70 people in a
park setting. EDA President Bailey asked if we should reach out to Mann again. EDA Executive
Director Schroeder said when we talk about land again we'll mention the idea and see.
Retail Development Activity — EDA Executive Director Schroder stated Staff has been in contact
with development interests moving towards proposals within redevelopment areas. There is
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May 11, 2011
Page 3
activity at several sites but don't want to be too optimistic. Owners are offering more reasonable
prices than ever.
Industrial Park - Staff has been working on two differing business park opportunities and putting
in bids on Friday.
ICSC — Community Services and Communications Coordinator Ken Smith informed the EDA
that four representative from the EDA would be attending the event in Las Vegas. The event
will run from May 22 — 25 and he listed the items that the team would be bringing including
drives, brochures, site plans, golf coupons and other maps.
Economic Development Director - Due to the departure of Howard Blin the City has hired
Danette Parr as the Economic Development Director. She begins work with the City on May 31,
2011. They were informed that Jennifer Levitt was filling the position in the interim. The EDA
will be seeing Ms. Parr at future meetings.
Request for Proposals on Surplus City Property — EDA Executive Director Schroeder stated he
had no updates at this time.
Review of PSCH Project
EDA Executive Director Schroder informed the EDA that he wanted them to sign off on the
project. Construction employment data reveals that 200 to 300 jobs will be created in the trades
and from suppliers from a project like ours (around 50,000 sq /ft). The wages generated from
those jobs over the project life is estimated at $6 million. A portion of those jobs will be from
within the local trade area. Economic impact is expected to be big. Long term, the facility is built
to accommodate 134 staff persons with a large portion of those expected to live in the trade
area. He believes the public benefits from the City being on the Ravine side of Hwy 19 aesthetic
views that are in conformance with development plan. It is believed that the government
campus, including the South Service Center, the PSCH, with the potential for other public uses
such as a library, community center and potentially a fire station would contribute positively to
retail attraction to the Cottage View. Also, positive conformance with the East Ravine Plan and
by extension the Comprehensive Plan. He mentioned the Park Commission talked about the
project at their meeting last night. EDA Member Poncin stated that no one had any problems
with the plans so far. It was also mentioned that once utilities were in, it improves the
opportunity to develop land to the north.
Public Safety Director Craig Woolery remarked that the project would benefit safety operations
and that the tours revealed the City's need and that the project is expected to make a big
difference in terms of operations and effectiveness.
During Good to Great, staff brought up issues that the new building will hopefully solve. EDA
Member Jurgens asked what will be brought back to the EDA. EDA Executive Director
Schroeder stated revenue bond issues like the Ice Arena and the Golf Course. Various funding
options were discussed by EDA Executive Director Schroeder and EDA President Bailey. The
goal is to keep things moving before bid prices start to increase. A vote was called for to affirm
or deny the above summary to suggest support or lack thereof as a basis for providing a
positive recommendation to further the PSCH project. EDA Member Poncin made a motion to
support the project which was seconded by EDA Member Remackei, all present were in favor
and the motion passed.
Economic Development Authority - Minutes
May 11, 2011
Page 4
American Accounts & Advisors — Sign Violation Notice
City Engineer Levitt mentioned the property owners of a banner address sign at 7460 80" St. S.
were given till May 16, 2011 to correct the sign violation. The City will work with owner to
achieve compliance.
River Oaks Golf Premium Update
Communication Coordinator Smith gave an update on the golf premium campaign at River Oaks
Golf Course. One - hundred -forty -five people have signed up as of May 9. It was brought up that
residents could sign up for the premium at Strawberry Fest.
CALENDAR
The Calendar reviewed by the EDA
ADJOURN
EDA Member Patterson moved to adjourn the meeting, seconded by EDA Member Jurgens. All
present were in favor. The meeting adjourned at 8:30 AM,
Respectfully Submitted,
Kenneth L. Smith
Community Services and Communications Coordinator