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HomeMy WebLinkAbout2012-02-15 PACKET 05.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # D jbq ATE 2/15/2012 ° e PREPARED BY Administration Ryan Schroeder ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Receive response to previously raised Open Forum issue regarding Cottage Grove Business Accelerator. STAFF RECOMMENDATION Receive response. BUDGET IMPLICATION BUDGETED AMOUNT ACTUAL AMOUNT SUPPORTING DOCUMENTS ® MEMO /LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS City Administrator Date COUNCIL ACTION TAKEN: []APPROVED ❑ DENIED ❑ OTHER Document2 February 7, 2012 Cottage Grove Business Accelerator T.he City of Cottage Grove awarded bids for construction of a new Public Safety / City Hall facility in September 2011. Once the timeline was known for relocation of personnel from the current City Hall at 7516 80 Street the City began the task of creating value from the property at the corner of Hemingway and 80 Street. Given that this property is located at the periphery of the Gateway Redevelopment District it has been believed that repositioning this property for a commercial use was a likely outcome. It was noted in a City publication (FAQ document on 9/17/10 posted to the City website) that remarketing the facility would occur once a certain timeline for the PSCH project was established. Further, that due to building configuration the current City Hall may be a tear down (redevelopment parcel). The City Council recently was asked if it was appropriate to re -use the current City Hail building given past suggestions by the city of the buildings' deficiencies. The City commentary about deficiencies have related almost exclusively to continued use of the current building as a public safety facility. The deficiencies of this building have been most completely presented in a FAQ dated 9/17/10 (and also on 2/28/11) as it relates to future public safety use. Building deficiencies for law enforcement use were reinforced by Public Safety Director Woolery in a South Washington County Bulletin viewpoint article of 9/27/10. A review of each of these documents serve as good sources of information on why the current City Hall no longer serves the public adequately for public safety purposes. However, that is not to suggest that the building could not be converted to other uses. The City has not provided as a rationale for the new PSCH facility that the current building was not habitable. Instead, the City has opined that the Public Safety Department could no longer function out of spaces that were not code compliant for use as a public safety facility and were not amenable for updating as a public safety facility. Further, it is the case that staff is currently located in closets due to the fact that the City operation had outgrown the facility. The building systems themselves are functional and have been well maintained, particularly over the past decade. In June 2011 the Economic Development Authority Board (EDA) began reviewing the opportunities to make use of the current City Hall as a business incubator. The EDA created a team led by board member Paul Poncin to research metro area incubator facilities, to meet with operators of these facilities, and to attempt to determine capital outlay needs of the current building which may be necessary to reposition this building within the marketplace. After several months of deliberation the EDA has determined that creating a business accelerator (i.e. incubator) within the current city hall meets the mission of the EDA which is to recruit and retain quality commercial /industrial partners. EDA guiding principles include promoting quality jobs, fostering cooperation between the public and private sectors, utilizing sound financial practices, and encouraging quality development. A business accelerator would meet these guiding principles. The EDA has approved a contract with an entity with background in running the operation of a business incubator. The EDA has reviewed a project pro -forma that projects positive cash during the initial operating years of a business accelerator. Further, the EDA believes that a Cottage Grove business accelerator will provide a facility which will provide the opportunity for early stage companies to thrive and grow. A longer term goal of the EDA for this project would be to maintain relationships with Accelerator tenants such that when those tenants are prepared for the next stage they will continue to operate within the Cottage Grove market. The EDA has directed that a market appraisal be completed on the building. Once this is completed the EDA is expected to finish their review of the proposal for a recommendation to Council perhaps as early as March, 2012. If the project proceeds it is anticipated that marketing of the opportunity will start in late spring or early summer for fall occupancy.