HomeMy WebLinkAbout2014-12-09 EDA Minutes - Approved
CITY OF COTTAGE GROVE
E
CONOMIC
D
EVELOPMENT
A
UTHORITY
MINUTES
December 9, 2014
Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority
was held at Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove, Minnesota 55016
on the 9th day of December, 2014.
I. CALL TO ORDER
The meeting was called to order at 7:30 a.m. by EDA President Bailey.
II. ROLL CALL
Members Present:
Myron Bailey, EDA President
Paul Poncin, EDA Member
Dave Thiede, EDA Vice President
Ramona Westerberg, EDA Member
Craig Patterson, EDA Member
Laurie Levine, EDA Member
Members Absent:
Steve Schmid, EDA Member
Staff Present:
Ryan Schroeder, EDA Executive Director
Danette Parr, Economic Development Director
Alicia McMonigal, Economic Development Assistant
Others Present:
Emily Buss, South Washington County Bulletin
III. APPROVAL OF MINUTES
EDA Member Poncin motioned to approve the November 12, 2014 EDA Meeting Minutes, and
EDA Member Westerberg seconded, all present were in favor.
IV. BUSINESS ITEMS
A. Development Update / BR&E Update
EDA Executive Director Schroeder reviewed the
development update materials that were included in the EDA packet. Director Schroeder
commented that Leafline Labs applied for and received a permit allowing an extension of
the construction work hours from 7:00 am to 7:00 pm five to six days a week. The roadway
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on 97 near Hemingway will also be completed because of the Leafline Labs project.
Parkway storage had a positive hearing at the most recent Planning Commission meeting.
The demolition of Cottage Grove Motors on W Point Douglas will begin on December 22.
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B. Market Study Proposal
EDA Director Parr reviewed the market study materials that were included in the EDA
packet. EDA President Bailey and EDA Director Parr discussed the recommendation of
obtaining a full market study. EDA President Bailey stated a similar study related to lodging
progressed into a hotel deal. EDA Member Westerberg asked about the time frame for
updating a marketing study. EDA Director Parr stated a need for a study is when the
economy changes drastically but also depends on the changes within the community.
Discussion related to the cost of the study ensued between various members. Vice
President Thiede suggested that we use the 2009 marketing study as a template but
suggested the data be refreshed by staff or a marketing student. EDA President Bailey
stated the report should come from a reputable firm with a proven reputation so potential
end user retailers can trust the data. EDA President Bailey referenced the 2009 Market
Study’s estimate for a 2010 supermarket to be 117,000 million and the estimates for 2015
have grown quiet high. He would like to compare the projections of the previous study to
projections to the updated study with regard to supermarkets.
EDA Director Parr confirmed that the study would be usable at ICSC. EDA President
Bailey stated residents have suggested a desire for a movie theatre or health fitness
facility. EDA President Bailey asked if the study could be that narrowly focused on those
types of subsets. EDA Director Parr stated the report can be focused on subsets of
information but that she would have to confirm with the McComb Group about how narrow
those subsets could be. EDA President Bailey stated that the lodging study was beneficial
because staff targeted those end users with the data and it resulted in a lodging deal.
EDA Member Poncin/Peterson would like to know how many retail dollars are spent in
Cottage Grove as opposed to how many dollars are leaving Cottage Grove.
EDA Member Westerberg motioned to approve moving forward with the study, and EDA
Member Levine seconded, all present were in favor.
C. 2015 International Council of Shopping Centers (ICSC) Convention
EDA Director Parr reviewed the 2015 ICSC RECON Convention materials that were
included in the EDA packet. EDA Director Parr reiterated last year the focus was on
obtaining meetings with entities associated with lodging and we were successful in that
area. EDA Director Parr suggested the focus be on the 2009 Market Study that had the
most leakage areas and entertainment venues.
EDA President Bailey stated staff uses ICSC to continue to develop and maintain
relationships with brokers and end users for retail development opportunities. Our most
recent successes include Noodles and Company and Chipotle. EDA Member Peterson
stated Sally’s Beauty also located in Cottage Grove because of efforts at previous ICSC
meetings. EDA Member Westerberg stated she is in favor of attending.
EDA Member Poncin stated he wasn’t sure if he was in agreement with the previous
market study in all areas as the pet food retail projected 1.8 million in sales at Chuck &
Don’s sales is beyond that amount. He would like to see a broader focus at ICSC to
include home décor, furniture sales, and floor coverings.
EDA Vice President Thiede spoke about including a focus on Shoppes of Cottage View
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for development.
EDA President Bailey would like to have a plan in place for HD/Rainbow prior to going to
ICSC. EDA President Bailey would like to target specific developers that can handle
developing at the Shoppes of Cottage View and across the highway with the Majestic
Ballroom site. EDA President Bailey stated the projection of a movie theatre at the
Shoppes of Cottage View and target those specific developers that would be able to
manage that parcel or portion of that parcel. EDA President Bailey would like to have
someone check in with Gerry Herringer to make sure that he is ready to develop.
EDA President Bailey confirmed he and EDA Director Parr would be the two attending
ICSC. EDA Member Poncin motioned to approve attending ICSC for 2015, and EDA
Member Thiede seconded, all present were in favor.
D. Economic Development Work Plan Discussion
EDA Director Parr discussed the economic development work plan that was included in
the EDA packet. EDA Director Parr stated that focusing on filling the business park will
increase daytime numbers and quality retailers will come to Cottage Grove. Discussion
regarding vacancy across the City ensued.
EDA Member Poncin addressed the need for office space at $10 a square foot in Cottage
Grove. EDA Director Parr clarified that there is no office space in Cottage Grove for $10
a square foot.
EDA Director Parr estimated vacancy rating including the business park, office space and
retail is at 7% minus the empty big box entities on East Point Douglas Road. EDA
Executive Director Schroeder estimated 7% minus Rainbow but including the Home Depot
site. EDA President Bailey stated there are buildings on West Point Douglas that are
uninhabitable and will skew the numbers. EDA Executive Director stated those sites
should be more accurately depicted if they were a land number.
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EDA President Bailey would like to add the 80 Street Crossing area to the number three
objective as he would like to focus on that being developed as well. EDA Vice President
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Thiede inquired as to the status of 80 Street Crossing’s leasing status. EDA Director
Parr stated that they are upgrading the area and are still in negotiations with potential and
current tenants.
EDA Vice President Thiede discussed W Point Douglas access from highway 61. He
would like to see a slip ramp coming off of 61. He would like to see how much it would
cost the City to put it in and maintain a slip ramp from 61. He also suggested putting up a
City maintained sign prior to the exit so potential money spenders would know what
businesses are located along W Pt Douglas prior to the exit.
V. MISCELLANEOUS BUSINESS ITMES
EDA President Bailey thanked EDA Members Poncin and Patterson for their six years of
service on the EDA. EDA Members Levine and Schmid are not seeking reappointment
because of other time and business commitments.
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VI. CALENDAR
The EDA members were given the upcoming meeting and events calendar that was included in
the EDA Packet.
VII. AJOURN
EDA Member Poncin motioned to adjourn the meeting. Seconded by EDA Member Patterson,
all present were in favor. The meeting adjourned at 8:30 a.m.
Respectfully Submitted,
Alicia McMonigal
Economic Development Assistant