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Home My WebLink About2011-07-12 PACKET 03• •�•A_WIItl:Z•]�l ECONOMIC D EVELOPMENT AUTHORITY MINUTES June 14, 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 14` day of June, 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 Tony Jurgens, EDA Member Paul Poncin, EDA Secretary/Treasurer Richard Remackel, EDA Member Chris Reese, EDA Member Members Absent: Justin Olsen, EDA Vice President Craig Patterson, EDA Member Staff Present: Robin Roland, Finance Director Ryan Schroeder, EDA Executive Director Ken Smith, Community Services and Communications Coordinator Danette Parr, Economic Development Director Others Present: Alex Sheppard, Cottage Grove Area Chamber of Commerce APPROVAL OF MINUTES A motion was made by EDA Secretary/Treasurer Paul Poncin, and seconded by EDA Member Economic Development Authority - Minutes June 14, 2011 Page 2 Tony Jurgens to approve the May 10, 2011 Economic Development Authority minutes. All present were in favor. Introduction of Danette Parr New Cottage Grove Economic Development Director, Danette Parr was introduced to the EDA. She mentioned she intendeds to take an active role within the Chamber of Commerce. DEVELOPMENT UPDATE / BR &E UPDATE / BUSIN LEADS EDA Executive Director Schroder explained that building permits are down this year. With our limited residential lot availability we do anticipate a rehash of 2010 (at 45 new homes not counting the 44 White Pines Phase II). We also do not anticipate significant strength in commercial activity during most of the 2011 construction season. EDA Member Jurgens asked about permits due to hail damage and was told activity was not significantly affected. Last time we noticed anything from weather was 2001. PSCH Project - EDA Executive Director Schroder explained that there will be a special meeting on June 24 and that bids would be awarded in late August. The City wants to choose a financing path that has no impact upon taxes. We would like to use private placement a mechanism that has been around forever and used for smaller issues. EDA President Bailey explained that if interest rates are cheaper it will save taxpayers money and if we had a lower bond rating we could not do this. EDA Member Jurgens asked if there is a time issue. EDA President Bailey stated yes, delays increase the likelihood of interest rates and materials going up. EDA Executive Director Schroeder mentioned that there are no front end expenses with private placement. Finance Director Robin Roland stated that the City Council wanted us to see if other banks would look at the project. Three banks have contacted us and she and Ryan will meet with them. ICSC - EDA Executive Director Schroeder explained that Mayor Bailey, Paul Poncin, Justin Olsen and himself had 29 scheduled meetings but probably met with 40 folks in Nevada for the ICSC meeting. Follow -up letters went out and they've received some follow -up from contacts. Myron Bailey mentioned that a hard ware store owner would be in town next week. The question relating to an attached second letter regards the EDA Golf Tournament and if we should offer to comp contacts from the ICSC exhibition and to what extent. The EDA agreed to offer to those contacts a comp as far as the golf outing was concerned. 7460 80 St. Signage — Owners of this property (American Account Advisors) have converted their temporary signage to a permanent sign as of June 3, 2011. EDA Executive Director Schroeder mentioned that we are still in the running for a large industrial Park tenant. He believes we are # 2. There is a purchase agreement for the Ichor building. Cottage View is moving forward and nothing new from Home Depot yet. EDA President Bailey stated that other's have shown interest in the Cottage View site now that smaller parcels are available. EDA Member Jurgens asked if anyone was interested in building an entertainment complex. Ryan stated not at this time. EDA President Bailey said the owner of the theatre doesn't want to keep it open. EDA Executive Director Schroeder said there were significant costs in maintaining the property. Economic Development Authority - Minutes June 14, 2011 Page 3 YMCA EDA Executive Director Schroeder mentioned that the attached material contains the Task Force report and the Market Study for the project. Also enclosed is a preliminary development agreement (LOI) along with site information. A majority of those surveyed are in favor of a joint City/YMCA community center. We would like the EDA to signal they have some level of comfort issuing financial instruments with this partnership. There will be a Council workshop and a referendum will accompany this project. A question about the location of the Community Center near PSCH with three sites being mentioned was brought up by EDA member Remackel. The Y wants the community to provide the site for free. East Ravine site has lower cost basis. According to Ms. Roland we cannot spend public funds on pro or con efforts surrounding the referendum. EDA Member Jurgens asked what the EDA's role is. Ms. Roland replied if the City funds the project, the EDA would issue the revenue bond which the Y will make payment to City for. The City would be expected to pay the other portion. EDA Executive Director Schroeder stated that if we are the building owner, than the Y would be our tenant. EDA Member Reese asked if they would be 20 year bonds. Ms. Roland said yes if not longer. EDA Executive Director Schroeder said we need the letter of intent to have as a basis for the referendum. EDA Member Poncin made a motion authorizing adoption of the proposed LOI between the City and the YMCA. The motion was seconded by EDA Member Remackel. All present were in favor. Business Incubator — As of October 2012 the current City Hall on 80 St. is expected to become excess property. The property could be marketed generally, could become part of a site for future YMCA, could be delivered to the County for use as future Library, or could become part of a larger redevelopment project. An alternative to these would be to maintain ownership of the building for alternative uses such as a business incubator. EDA Executive Director Schroeder stated he spoke with Harland Jacobs about this issue. I ask the EDA do you think it would make sense to use this building as an incubator or another building. Economic Development Director Parr stated that her previous city did the same thing for medical uses. She said it is a great way to help businesses grow. EDA Executive Director Schroeder stated a person could find a space in the building to do his work. He doesn't need central services. Home based business incubator allows them to move forward without going too far. A brief discussion about competition and separation of business and personal use occurred. We would be responsible for repairs and maintenance. A build -out would not be necessary. EDA Member Poncin mentioned that one home run in the incubator would pay for the project. A brief discussion about location occurred and Paul Poncin mentioned that start ups care about cheap space. EDA Member Jurgens said he likes idea but doesn't want to be locked in because of possible library use. EDA Member Poncin suggested we go forward with looking into it. Phase 1 would be a $10,000 feasibility study, then we could go forward or stop said Mr. Schroeder. EDA President Bailey exclaimed he was ok with phase 1. Mr. Schroder mentioned that Phase II would involve going out to banks and lining up credit. EDA Member Poncin offered to get us someone from the University of Minnesota for help and advice. Mr. Schroeder said he would bring Mr. Jacobs to the next meeting and follow up. EDA Golf Tournament Community Services and Communication Coordinator Ken Smith gave an update of the planned EDA golf tournament. He mentioned there were four levels of sponsorship and that 1300 Economic Development Authority - Minutes June 14, 2011 Page 4 invitations had been mailed out. He spoke about the grilled dinner, various prizes and suggested changes. EDA Member Poncin suggested we raise the amount of the gift certificate given to each golfer from $20 to $25. EDA Executive Director Schroeder invited all EDA members to play in the tournament. He also said they would have the Growth Partner Award for the next meeting. Calendar — Members reviewed the calendar. Miscellaneous Business Items It was mentioned that Minnesota foreclosure outlook was still flat according to MN Association of Realtors. In Cottage Grove, $183,000 was the average sale price for single family home in May which is above many other cities. EDA Member Poncin suggested we think about constructing a large strawberry as a signature sculpture for Cottage Grove like the giant snowman and teapot water tower. Members said they would think it over. Chris Reese said he liked the River Oaks sign. ADJOURN EDA Member Jurgens moved to adjourn the meeting, seconded by EDA Member Remackel. All present were in favor. The meeting adjourned at 8:59 AM. Respectfully Submitted, Kenneth L. Smith Community Services and Communications Coordinator