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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 th 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. Economic Development Authority - Minutes December 9, 2014 Page 2 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 Economic Development Authority - Minutes December 9, 2014 Page 3 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. th 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 th 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. Economic Development Authority - Minutes December 9, 2014 Page 4 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