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HomeMy WebLinkAbout2003.07.08 PACKET CITY OF COTTAGE GROVE ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA JULY 8, 2003 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of June 10, 2003 Regular Meeting and June 24, 2003 Special Meeting Minutes 411/ 4. Business Items A. Business Subsidies Criteria 1. Public Hearing 2. Adoption of Resolution B. Project Updates C. Gateway Update D. Highway 61 Drainage Project—Appraisal Update E. Annual Report F. Golf Tournament Update G. WEB Site H. EDAM Award I. Calendar 5. Miscellaneous Business Items 6. Adjourn • Next Meeting Date: August 12, 2003 E:\Economic Development\E D A\Agendas\2003\July8 Regular.doc CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES June 10, 2003 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at City Hall, 7516 80th Street South, Cottage Grove, Minnesota on the 10th day of June 2003. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Wolcott. ROLL CALL • Members Present: Jim Wolcott, EDA President Sandy Shiely, EDA Vice-President Gerry Weingartner, Authority Member Glen Kleven, Authority Member Dick Pederson, Authority Member Mike Wennen, Authority Member Al Boche, Authority Member Members Absent: Others Present: Ryan Schroeder, City Administrator Steve Barrett, Management Analyst Scott Johnson, Management Analyst Nancy Hanzlik, City Engineer Colby Johnson, South Washington County Bulletin APPROVAL OF MINUTES Authority Member Sandy Shiely moved to approve the May 13, 2003 EDA Minutes. Gerry Weingartner requested a clarification in the minutes to further explain that the grade improvements for the Oak Park Commons project were agreed to because of the enhancements to the roads. Mike Wennen seconded the motion and the Motion carried unanimously. • • Economic Development Authority- Minutes • June 10, 2003 Page 2 PROJECT UPDATES Staff is currently working on updating the project list. One project has selected another site in Brooklyn Park. Six other projects are no longer active. Staff is still waiting for an update on one project. Currently, the city has nine prospective restaurants on the economic development database. Three of the restaurants are from the Cottage Grove area and are looking for land to relocate. They range from a quick serve — Culver's style restaurant to a sit down restaurant with a liquor license. Al Boche recently helped the city find a new lead for a possible sports bar. The city should expect more restaurant leads with the new sites around the Kohls project and Grove Plaza that will be able to accommodate these projects. The Wells Fargo project is going up quickly. There are also two other banks on the list that are interested in Cottage Grove. Also, there are currently two prospects that the city has a decent shot of bringing to the Industrial Park. GATEWAY Ryan Schroeder informed the EDA that the city is on target to deliver the Kohls site by • the July 1st deadline. Staff is currently working through title issues for the site, but they expect resolution shortly. All title work will be needed to complete the Alta Survey that Kohls has requested. There continues to be challenges with grading for the road and the site. Kohls recently changed the grading plan for the site. The City Attorney recently informed Mr. Schroeder that a public hearing will be necessary for disposition of the Kohls property. This hearing will take place on June 24th at 7:30 AM. Also, because of the new grading plan, dirt will need to be borrowed for the site. They will be able to get the dirt from the Hardwood Ct. project, the Oakwood site, or the Bruhn/Stoltz property. Gene Stoltz continues to proceed with development plans for his property north of the Kohls site. The high elevation will need to be graded down. This will leave a 2 acre pad that could accommodate perhaps a 20,000—25,000 sf project. GROVE PLAZA A new 4,200 sf project will be built on the old Applebee's site and they will reconstruct the small tenant space in Grove Plaza. The small box store that had an interest in Grove Plaza is not proceeding at this time. Mayor Shiely stated that she is running low on patience for the Grove Plaza project. Mr. Schroeder explained that Grove Plaza has had a letter of intent with the user, but there is no signed lease. They were waiting for the signed lease before they began reconstruction of the small tenant space, but now they are forced to reconstruct the space without the user. Mayor Shiely asked if the parking lot would be upgraded. Ryan Schroeder said it is not currently in the plans. Jim Wolcott • mentioned that some streetscaping would be included in the project. Dick Pederson Economic Development Authority- Minutes June 10, 2003 Page 3 asked if the new owners of Rainbow were still moving ahead. Mr. Schroeder informed the EDA that they have pulled the necessary licenses to keep Rainbow open. Jim Wolcott mentioned that the Council could make the new small tenant space contingent on finishing the existing small tenant space. Also, the Oak Park Commons project is moving ahead. Plus, there has been some progress made on funding a new project at the Cottage Square site. Mayor Shiely said she likes the banners that were designed for the Gateway district. Ryan Schroeder also informed the EDA that there will be a new monument sign in the Gateway. The city has also hired two Horticulture Interns to help with the landscaping for the Gateway area and throughout the city. Glen Kleven asked if the city sign on the hill off of Highway 61 could be weeded. Mr. Schroeder said the city would take care of the problem. The grading continues on the Kohls project. Some temporary easements will be used for ponding and access to keep existing businesses open during the project. We are working with MNDOT on the planned temporary access because they have access control over that parcel. The city will work with MNDOT to keep the access open. Sidewalks will also be rebuilt on 80th Street during this project. • OAKWOOD COMMERCIAL AGREEMENT Glen Kleven raised a number of concerns with the list of accepted uses in the agreement. He asked the EDA to look at uses 8,10,17,28,31,40,47,49,60,61, and 62. The EDA voted to remove all the uses from the list except the off-sale liquor item which will stay on the list. Glen Kleven made a motion to approve the list. Gerry Weingartner seconded the motion. Mayor Shiely explained to the EDA that she will vote no on the motion because she is not convinced the city should settle for a strip mall. She thinks that agreement will take the property out of the city's hands. Jim Wolcott likes the agreement because it narrows down the options for developers. Mayor Shiely thinks the agreement will limit the restaurant choices for the city. Ryan Schroeder explained to the EDA that a restaurant is a part of the agreement and one must be built on the site. Mayor Shiely would like to have the option of having one large restaurant on the site. Glen Kleven also wondered if the city would say no to a restaurant that is not wanted on the site. Jim Wolcott mentioned that the city is looking for a Sunsets style of restaurant on the site and the guidelines will help bring in this type of restaurant. Mayor Shiely thinks the city will lose their right to choose a restaurant if we proceed under this agreement. Mr. Schroeder explained to the EDA that the City Council owns the property and they will make the ultimate decision on what is built on the site. The document gives developers an idea of what is wanted on the site. Jim Wolcott mentioned that the agreement would be given to other land owners in the city which gives them guidance on what the city wants on the site. Glen Kleven said the city should change its zoning if it wants a specific type of development in the Gateway. Mike Wennen made a motion to approve the agreement. Dick Pederson seconded the motion and the motion passed. • Mayor Shiely dissented on the motion. Economic Development Authority- Minutes June 10, 2003 • Page 4 EDA The 2004 EDA budget will reduce operating costs by 14%. The reductions will occur in professional services. Glen Kleven asked about goal number eight. Mr. Kleven would like to see the city put together a list of all city businesses. Woodbury currently has a program where businesses pay the city to have their name included on a business list. Jim Wolcott thought it would be a good idea to charge local businesses to be a part of a Cottage Grove business list. Ryan Schroeder mentioned that the city is looking into a general business license and providing a business list would be a good benefit. Mr. Schroeder also mentioned that goals 11-14 are new and the Industrial Park promotion brought in 36 rounds of golf. Gerry Weingartner made a motion to approve the 2004 budget. Mike Wennen seconded the motion and the motion carried unanimously. BUSINESS SUBSIDY CRITERIA Ryan Schroeder explained to the EDA that with the current changes in law the city needed to update its Business Subsidy criteria to become compliant with current law. The city currently has a wage floor of $11.00 per hour for any projects to receive a subsidy. Mr. Schroeder suggested to the EDA that the number stay where it is currently. Under the current law the city can drop the wage and job goal if it will help secure a • specific benefit for the community. Jim Wolcott asked why the EDA and Council needed to hold hearings on the Business Subsidy Criteria. Ryan Schroeder explained that it would help to protect the city in future audits. The EDA members were comfortable with the $11.00 per hour wage standard. Glen Kleven reminded the EDA that that subsidy is only provided to businesses with a proven need. Mr. Schroeder also said the businesses need to pass the "but for" test and other tests to comply with the standards to receive the subsidy. Glen Kleven wanted to know how the city will force a business to stay in the community for five years. Ryan Schroeder said the city can demand the subsidy back and a new purchaser of the property will know about the restrictions on the title. Mr. Kleven also asked for which projects public hearings would be held. Mr. Schroeder said it just depended on the project and the state statutes. HWY 61 DRAINAGE PROJECT Staff is still waiting for the appraisals for this project. EDA GOLF OUTING Currently, 46 golfers have signed up for the event. The tournament to date has 6 silver sponsors and 2 bronze sponsors. EDA ANNUAL REPORT EDA members liked the new bullet points and photos. The report will be printed in the near future. • • Economic Development Authority- Minutes June 10, 2003 Page 5 2003 DEVELOPMENT UPDATE Ryan Schroeder explained to the EDA that the Development Update is reviewed 2 or 3 times a year. EDA members were given a recently updated version of the marketing piece. FOR SALE/LEASE EDA members were given an updated version of the For Sale/Lease database. MISC Mayor Shiely informed the EDA that the city has won the EDAM Award for the top direct mailing campaign. Cottage Grove is the only city to win an EDAM Award two years in a row. Glen Kleven would like staff to send out an e-mail reminder to the EDA for the June 24th meeting. Mr. Kleven also told the EDA about the golf outing for the Park Girls Basketball Booster Club which will be held on August 15th • ADJOURN The EDA adjourned at 9:35 a.m. Respectfully submitted, Scott Johnson Management Analyst • CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES June 24, 2003 Pursuant to due call and notice thereof, a special meeting of the Economic Development Authority was held at City Hall, 7516 80th Street South, Cottage Grove, Minnesota on the 24th day of June 2003. CALL TO ORDER The meeting was called to order at 7:30 AM by EDA President Wolcott. ROLL CALL • Members Present: Jim Wolcott, EDA President Gerry Weingartner, Authority Member Glen Kleven, Authority Member Dick Pederson, Authority Member Mike Wennen, Authority Member Al Boche, Authority Member Members Absent: Sandy Shiely, EDA Vice President Others Present: Michelle Wolfe, Assistant City Administrator Steven Barrett, Management Analyst PUBLIC HEARING WOLCOTT opened the public hearing relating to Resolution 03 — 01, a Resolution authorizing the transfer of real property. There being no one to speak either in favor or against the Resolution, WOLCOTT closed the public hearing. ADOPTION OF RESOLUTION KLEVEN moved to approve Resolution 03 — 01, a Resolution authorizing the transfer of real property. PEDERSON seconded. Motion carried, and the Resolution \res adopted. • Economic Development Authority- Minutes • June 10, 2003 Page 2 MISCELLANEOUS WOLFE commented on the necessity for the public hearing relating to the transfer of real property and explained the state law relating to land conveyances by a public entity such as the EDA. ADJOURN KLEVEN moved to adjourn the meeting. PEDERSON seconded. Meeting adjourned at 7:35 AM. Respectfully submitted, f;›,APCI..‘" Steven Barrett, J.D. Management Analyst • • CITY OF COTTAGE GROVE MINNESOTA ,411 To: EDA Members MA) From: Michelle A. Wolfe, Assistant City Administrator, Date: June 2, 2003 Subject: Business Subsidies: Public Hearing and Adoption of Criteria At the June 10 EDA meeting, you had an opportunity to review the proposed resolution and criteria. Attached is a copy of the proposed resolution. The background information from the June meeting is also included for your reference. At the July 8 meeting, the EDA needs to open the public hearing and receive comment • regarding the proposed criteria. The public hearing has been properly noticed in the local newspaper statute. Oncepublic comment has been received, the EDAcan perclose the public hearing and discuss the proposed resolution to update the business subsidies criteria. REQUESTED ACTION 1. Conduct the public hearing. 2. Review and discuss the proposed resolution. Adopt the resolution. Attachments G:\Economic Development\E D A\Documents\2003\July Business Subsidies.doc • CITY OF COTTAGE GROVE MINNESOTA To: EDA Members From: Michelle A. Wolfe, Assistant City Administrator Date: June 2, 2003 Subject: Business Subsidies Criteria BACKGROUND The Business Subsidies Act was originally enacted in 1999 and substantially amended in 2000. While the 1999 Act contained a requirement that grantors adopt a set of criteria for awarding business subsidies, the only specific requirement was that the set of criteria contain a policy regarding wages. The 2000 amendments to the Business Subsidies Act specifically require that "criteria may not be adopted on a case-by-case basis" but instead must "set specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies". • DISCUSSION Grantors of business subsidies that had adopted criteria prior to May 1, 2000 are required to have updated criteria in place by May 1, 2003. The EDA cannot grant any business subsidies until the updated criteria have been adopted. We do not currently have any projects that would be affected by this so we have time to conduct the appropriate process and review our criteria. Since the EDA and City of Cottage Grove adopted its criteria in 1999, we must adopt updated criteria. This requires a process of publishing appropriate notice and holding a public hearing. The City Attorney has prepared draft criteria for your review (attached). The document complies with the statutory amendments and meets the requirements of the law. It is slightly lengthier than the existing criteria (also attached) and contains a number of provisions not in the existing criteria. In some cases, the law has changed since the original criteria were drafted and the modifications are required. In other instances, the attorney simply included in the criteria certain statutory provisions which apply whether they are stated or not. This makes the document more comprehensive and reduces the need to refer back to the statute. One area that will require some discussion is the wage target. Typically, the development agreement requires the creation of new jobs at a certain wage level. When we send out initial project proposals, we have been using the minimum wage rate of$11.00 since the beginning of 2003. During preparation of the development agreement, the wage rate has sometimes been negotiated to a higher rate. The EDA may want to discuss whether or not $11.00 is an appropriate minimum rate to include in the criteria. The attached article provides data CITY OF COTTAGE GROVE MINNESOTA • Regarding living wages, it could seem reasonable, given the information in the article, to set the minimum wage rate higher than $11.00. However, in order to ensure that we do not eliminate the possibility of a good project; staff suggests leaving the minimum in the criteria at $11.00, with the direction to negotiate higher minimum rates whenever possible in development agreements. We have been able to negotiate a higher rate in individual agreements in the past, and anticipate we would be able to continue doing so. It should be noted that while creation of at least one job was a requirement prior to the statute changes, it is now recognized that a project may create benefits that qualify for a subsidy without job creation. The public hearing for the attached criteria is scheduled for the July 8 EDA meeting (notice to be published June 25). This provides the EDA with time to review and discuss the proposed resolution thoroughly. Any changes recommended by the EDA can be prepared prior to the July meeting. The CityCouncil is scheduled to review the criteria and adopt by separate to resolution at their July 16 meeting. ACTION REQUESTED Review the attached resolution with proposed criteria and provide direction to staff regarding preparation of the final resolution for consideration at the July publichearing. hearin . Attachments • COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY • BUSINESS SUBSIDY CRITERIA (Revised July 18, 2003) SECTION I. PURPOSE; STATUTORY COMPLIANCE 1.01. The purpose of this document is to establish criteria to be considered by the Cottage Grove Economic Development Authority (the "EDA") in processing, evaluating and reviewing applications for business subsidies for private development. It is the intent of the EDA to comply with Minnesota Statutes, sections 116J.993 through 116J.995, as amended (the "Act"). The EDA hereby adopts the definitions contained in the Act for application in the criteria. 1.02. Business subsidy criteria were adopted on April 19, 2000 and are hereby revised. The EDA has the option to amend these criteria again in the future if doing so is determined necessary or appropriate. Amendments to these criteria are subject to the public hearing requirements of the Act. 1.03. These criteria are intended to set specific minimum requirements which recipients must meet to be eligible to receive business subsidies. The EDA will not adopt business subsidy criteria on a case by case basis. 1.04. In accordance with the Act, all business subsidy requests must comply with the • Act and other applicable Minnesota statutes. The EDA's ability to grant business subsidies is subject to the limitations established in the Act. SECTION II. GOALS AND OBJECTIVES 2.01. It is the EDA's intent to advance the following measurable and specific goals and objectives in granting business subsidies: A. Projects must be consistent with the city of Cottage Grove's comprehensive plan and other land use plans or guides for development of the community. B. Business subsidies will not be provided for projects which have the financial feasibility to proceed without a public subsidy. C. Potential recipients will be required to provide such studies, reports, appraisals, financial information or other data as may be requested by the EDA prior to consideration of a request for a business subsidy. 2.02. Business subsidies must be justified by evidence that the project cannot proceed without the subsidy. If tax increment financing is used to grant a subsidy, the recipient must demonstrate compliance with all statutory requirements of the TIF • Act, including the "but for" test. The recipient will be required to provide all RHB-232597v1 1 CT165-1 • documentation necessary for the EDA to make the requisite findings under the TIF • Act and the Act. 2.03. Recipients will be required to enter into an agreement with the EDA which is consistent with statutory requirements and which contains measurable, specific and tangible goals. The agreement shall include a commitment for the business to remain in Cottage Grove for a minimum of five years after the benefit date, unless waived by the EDA, and a requirement to comply with the specific job and wage goals established for the project, if any. The agreement must also be approved by the Cottage Grove city council. SECTION III. BUSINESS SUBSIDY CRITERIA 3.01. The EDA recognizes that every proposal is unique. Nothing in these criteria shall be deemed to be an entitlement nor shall these criteria establish a contractual right to a subsidy. The EDA may modify these criteria from time to time and reserves the right to evaluate each project on its individual merits. The EDA may deviate from these criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the Minnesota state agency charged with administration thereof. 3.02. The following criteria a shall be utilized in evaluating arequest for a business subsidy: fl) A. Public Purpose. A business subsidy must meet a public purpose, including but not limited to increasingthe tax base. Job retention mayonlybe considered a public purpose if the loss of jobs is specific and demonstrable. B. Increase in tax base. While an increase in the tax base cannot be the sole grounds for granting a subsidy, the EDA believes it is a necessary condition for any subsidy. C. Jobs and Wages. In those instances in which job creation is determined to be a goal, it is the EDA's intent that the recipient create the maximum number of qualifying jobs at the site. This may include jobs to be retained but only if job retention is specific and demonstrable. The wage and job goal must be attained within two years of the benefit date. The EDA may, after a public hearing, extend for up to one year the period for meeting the wage and job goal. A qualifying job is defined as one which pays at least $11.00 per hour. Any deviation from the established wage floor must be documented in conformity with the requirements set forth in the Act. If the EDA, following a public hearing, determines that job creation or retention is not part of the public purpose of the subsidy, the wage and job goal may be set at zero. S RHB-232597v1 2 CT165-1 D. Economic Development. Projects must promote one or more of the110 following: 1. Encourage economic and commercial diversity within the community; 2. Contribute to the establishment of a critical mass of commercial, industrial or manufacturing development within the area; 3. Increase the range of goods and services available or encourage fast-growing or other desirable businesses to locate or expand within the community; 4. Promote redevelopment objectives and removal of blight, including pollution cleanup; 5. Promote the retention or adaptive reuse of buildings of historical or architectural significance; 6. Promote additional or spin-off development within the community; or 7. Encourage full utilization of existing or planned publicI/ infrastructure improvements. SECTION IV. MINIMUM REQUIREMENTS. 4.01 In order for a recipient to be eligible for a business subsidy, the following minimum requirements must be met: A. Compliance with Sections 2.01 A, B and C; B. Compliance with Section 3.02 B; and C. Compliance with Sections 3.02 C or D. SECTION V. COMPLIANCE AND REPORTING REQUIREMENTS. 5.01. Any subsidy granted by the EDA will be subject to the requirement of a public hearing, if necessary. 5.02 It will be necessary for both the recipient and the EDA to comply with the reporting and monitoring requirements of the Act. 5.03. A recipient may be authorized to move from Cottage Grove within five years of the benefit date only if, after a public hearing, the EDA approves the request to move. RHB-232597v1 3 CT165-1 • Adopted this day of Authority. , 2003, by the Cottage Grove Economic Development President ATTEST: Executive Director G:\Economic Development\Business Subsidies\2003 Criteria Update\Attorney version 2 EDA.doc • • R1-IB-232597v1 4 CT165-1 CITY OF COTTAGE GROVE • � MINNESOTA To: EDA Members From: Michelle A. Wolfe, Assistant City Administrator Date: June 2, 2003 Subject: Project Updates Attached is the list of active projects. Staff will provide a verbal update regarding all current active leads at the meeting. Since the June meeting we received two new inquiries, which were both for restaurants. Attachment S • ACTIVE LEADS QUERY EDA PACKET 7/3/2003 Proposal ID Project Description SF/Acres Needed • ED-00-31 Grove Plaza NA ED-01-001 90,000 SF Retail 90,000 ED-01-006 Re- Development ED-01-021 Remodel ED-01-037 Multi-tenant Industrial 80,000- 100,000 SF ED-02-004 Office 2 acres ED-02-007 Restaurant ED-02-015 Remodel ED-02-016 Bank ED-02-017 Bank ED-02-018 Manufacturer 30 acres ED-02-020 Light Industrial 2-3 acres ED-02-023 Restaurant ED-02-025 Office/Warehouse ED-02-026 Biotech ED-02-027 Redevelopment ED-02-028 Commercial ED-02-029 Manufacturing ED-02-030 Commercial ED-02-031 Commercial ED-02-032 Restaurant ED-02-033 Restaurant • ED-02-034 Restaurant ED-02-035 Multi-tenant Office/Warehou 20-30 acres ED-02-036 Restaurant 3,500 -5,000 SF ED-02-037 Truck Repair 40,000 to 50,000 SF on 4-6 acres ED-02-038 Restaurant ED-02-039 Restaurant ED-02-040 Mixed-use 50 -300 acres ED-02-041 Commercial ED-02-042 Industrial 10 acres/80,000 SF ED-02-043 Industrial 250,000 to 300,000 sf ED-02-044 Industrial 3 -4 acres ED-02-045 Light Manufacturing 3-4 acres ED-02-046 Industrial 2 acres ED-02-047 Redevelopment Commercial ED-03-001 Light Manufacturing ED-03-002 Manufacturing 30,000 sf facility ED-03-003 Manufacturing 2 acres ED-03-004 Light Manufacturing 10,000 sf ED-03-005 Warehouse/Indoor Storage ED-03-006 Manufacturing 7.25 acres/90,000 sf ED-03-007 Restaurant ED-03-008 Manufacturing 40,000- 50,000 sf ED-03-009 Manufacturing 25,000- 35,000 sf • ED-03-010 Light Industrial 2 acres Page 1 ACTIVE LEADS QUERY EDA PACKET 7/3/2003 Proposal ID Project Description SF/Acres Needed ED-03-011 Office Building 5,000-15,000 sf ED-03-012 Car Dealership/Senior Housi ED-03-013 Distribution Center 15-40 acres ED-03-014 Light Industrial 100,000 sf ED-03-015 Restaurant ED-03-016 Restaurant • • Page 2 City of Cottage Grove Memo To: Economic Development Authority From: Ryan R. Schroeder CC: Mayor and City Council Date: 07/03/03 Re: Gateway North Update Activity continues within the Gateway on a number of fronts. Initially, we completed the real estate closings on the US Bank and 1501 land exchanges last week. While not yet scheduled the closing with Kohl's is expected during the week of July 7 or potentially the week after (dependent upon the duration of the document review by Kohl's legal counsel). As part of that transaction Kohl's will be granting temporary access, grading and ponding easements back to the City/EDA in order to allow us to finish development of the site and infrastructure surrounding and running through the site. We expect a building permit submittal within three weeks. The Kohl's pad is graded to its finish elevation. Compaction and density testing will occur on July 7. Temporary access was shifted to north of East Point Douglas this past week. The power poles along East Point will be removed within two weeks. Curbing for roadways north of East Point will be installed on or about August 1 with the first pavement lift installed by mid- August at which time most of the temporary access easements will no longer be necessary (but for those to the benefit of US Bank). The ponding easement expires on January 1, 2004 and the temporary access easements expire May 21, 2004 so that Kohl's can complete their parking lot at that time. This schedule allows for an August 1, 2004 opening date. A change from the previous schedule is that the intersection of East Point at 80th Street will now be constructed under traffic during September and October. Construction activities have been somewhat disruptive within the 80th to 70th Street "block", however, complaints have been minimal. While the hauling operation has been occurring at the intersection of Harkness and East Point, the contractors have also been connecting utilities within the roadbed of Harkness just south of 73rd Hence, access to the Harkness neighborhood has been difficult at times. Customers of Tutor Time and US Bank have also been faced with changing access over the • • Page 1 past month. Again, however, impacted residents and businesses appear to be understanding of the construction activities. While most of the roadway infrastructure will be at least partially constructed by year end the reconstruction of Harkness will not occur until 2004 to ensure that the new roadway surface is not subjected to undue truck traffic. The Oak Park Commons project appeared to be on track with completion of grading plans and an apparent grading contract award. However, Roger Jensen, the lead developer on this project passed away unexpectedly this past week. It would be expected that the project would be put on hold indefinitely. We also do not expect anything immediate, at this point, to be forthcoming on any of the Fratalone, Acorn LLC, Bruhn/Stoltz, of HSS properties. We also do not expect to approach Council or the marketplace with development proposals on the City Oakwood Commercial site until grading of that site proceeds a bit further. However, we continue to receive unsolicited interest on that parcel. We are continuing to work with prospective developers on redevelopment or rehabilitation of the Cottage Square development area but are not prepared to propose a specific development at this time. The owners of the Grove Plaza shopping center have presented that they will be proceeding with redevelopment of the small tenant space and development of the outlot. Their architects, KKE, have suggested that the building permit will be requested within two to three weeks on both projects. Included as part of this project will be pedestrian scale streetscaping/landscaping improvements. The façade enhancements had been delayed, as noted previously, due to an expectation that a • large tenant would be part of the remodeling plan. With a delay in completing that transaction, the owners have determined to proceed absent that tenant. The new façade, as the EDA is aware, will undulate in height ranging from 18 feet to 22 feet, up from the existing 14-foot elevation of the current center (the main body of Rainbow is at 24 feet and the top of the Gateway Center, for a comparative is at 18 feet). Initially, the owners had proposed a peak height of 26 feet (with a corollary reduction as the false front was stepped down to add architectural interest). KKE is following the same facade as has been approved by Council and the EDA with the slight reduction in height in exchange for additional streetscaping enhancements. Board Action: For information only. •Page 2 C: City of Cottage Grove Economic Development Memo To: Economic Development Authority /'1 From: Steven Barrett, Management Analyst (#''1 Date: Thursday, July 3, 2003 Subject: Update — Highway 61 Drainage Acquisition We received the first appraisal on the potential Gateway stormwater site. The appraisal covers two parcels owned by Eller Media Co., and include approximately 17 acres. The appraised value was determined by using the direct sales comparison approach, where sales of similar properties throughout the metro area were used to determine an accurate value. After that analysis, the appraisers determined that the two parcels owned by Eller Media Co. had an appraised value of$62,000.00. This appraisal assumes Eller Media Co. would retain three small parcels within the larger parcels to keep and maintain three billboards. The appraisal for the remaining parcel owned by Joe-Bob Properties will be provided in the very near future. If the Eller Media Co. properties are any indication, the Joe-Bob property will be appraised at approximately $15,150.00 The total appraised value for the Gateway stormwater site — incorporating all three parcels — should be in the neighborhood of$77,150.00. • O (::= City of Cottage Grove Economic Development Memo To: Economic Development Authority From: Steven Barrett, Management Analyst Date: Thursday, July 3, 2003 Subject: EDA ANNUAL REPORT Enclosed in your packet is the finished version of the 2002 EDA Annual Report. The report was mailed during the week of June 23 to over 1,500 individuals in the development community, including architectural firms, economic development consulting firms, commercial construction contractors, real estate brokers and developers, local business leaders, financial institutions, residential home builders, utility companies, public finance consultants, local chamber of commerce officials, and local political leaders. • • Cli= City of Cottage Grove Economic Development Memo To: Economic Development Authority cl."."11114N From: Steven Barrett, Management Analyst Date: Thursday, July 3, 2003 Subject: EDA GOLF TOURNAMENT The 8th Annual EDA Golf Outing is scheduled for Tuesday, August 19, 12:00 PM at River Oaks Golf Course. Here is an update on attendance so far, as of July 3. Number of Golfers 72 40 Bronze Sponsors 2 Silver Sponsors 8 Gold Sponsors 1 TOTAL REVENUE $6,790 • City of Cottage Grove Economic Development Memo To: Economic Development Authority From: Steven Barrett, Management Analyst Date: Thursday, July 3, 2003 Subject: EDA / CITY WEBSITE DISCUSSION During the June 10 EDA meeting, members discussed the City's website and whether we should include some sort of listing of City businesses. The City's Technology Task Force, comprised of City staff with the charge of exploring technology as a way to further market the City, looked at the content of the City's website while drafting the website links policy. The group specifically discussed whether City businesses should be listed somewhere on the site. The city of • Woodbury's website came up during the discussion, since they offer a listing of local businesses that pay a modest fee for the privilege of being listed. The Task Force decided that the Cottage Grove website should focus more on City services and events, while providing a link to the local chamber of commerce for lists of local businesses, should they choose to list them. As enhancements to the City's website are discussed and considered in the future, the Technology Task Force will certainly be open to re-consider this topic. 0 CITY OF COTTAGE GROVE MINNESOTA • To: EDA Members From: Michelle A. Wolfe, Assistant City Administrator Date: June 2, 2003 K. Subject: EDAM Award On Wednesday, June 25, the City of Cottage Grove Economic Development Authority was presented with the "Best Direct Mail Marketing Campaign" award at the annual conference for the Economic Development Association of Minnesota (EDAM). This is the second year in a row that the EDA has been recognized by EDAM. (Last year, the EDA was presented with the Best Business Attraction award.) A few years ago, the EDA was recognized for Best Business Attraction for the Renewal by Andersen project. Kim Lindquist, Steve Barrett and I attended the awards banquet. We received the award on behalf of the EDA, and had an opportunity to talk about our campaign and recognize our "partners" (Xcel Energy and BRAA.) In addition, the featured speaker at the dinner was Matt Kramer, Commissioner of DTED, and about-to-be Commissioner of the new DEED (Department of Employment and Economic Development.) Attached is a copy of the press release regarding the award. Attachment G:\Economic Development\E D A\Docurnents\2003\July Award.doc • • GROWTH PARTNERS PRESS RELEASE FAX TO: South Washington County Bulletin 651-459-9491 St. Paul Pioneer Press 651-228-5113 Minneapolis Star Tribune 612-673-4359 FROM: Steven Barrett, Management Analyst DATE: Thursday, June 26, 2003 5 RE: Cottage Grove EDA Wins Second Consecutive Award FOR IMMEDIATE RELEASE Contacts: Michelle Wolfe, 651-458-2882 Ryan Schroeder 651-458-2822 Cottage Grove, MN Cottage Grove EDA Wins Second Consecutive Economic Development Award The Cottage Grove Economic Development Authority (EDA) distinguished itself as the winner of the 2003 Best Direct Mail Marketing Campaign award, presented by the Economic Development Association of Minnesota (EDAM.) This marks the second consecutive year in which the Cottage Grove EDA has received such an honor. In 2002 they received the EDAM award for Best Business Attraction. The award-winning marketing campaign features Cottage Grove EDA and Community Development staff dressed in tuxedos at various development sites throughout the city, with catchy slogans and information on how to learn more about G:\Economic Development\Press Releases\2003 EDAM Award.doc • development opportunities in Cottage Grove. The theme of the campaign is designed to showcase how Cottage Grove is a "first class" community within which to locate a growing business. Some of the postcards have sponsored by corporations that have become Growth Partners with the city. "The marketing campaign was truly a collaboration between city staff, elected officials, and the business community," said Michelle Wolfe, Assistant City Administrator. 'We wanted to make something memorable so people will think of Cottage Grove first as a place to locate a business." EDA President Jim Wolcott added, "Our Growth Partners campaign has obviously gained notice as evidenced by the commercial and industrial renaissance that has been taking place in our community the last few years." The Economic Development Association of Minnesota presents annual awards to entities and individuals who distinguish themselves in the field of economic development. The organization was founded in 1967, and is now a statewide organization comprised of development professionals in the public and private sectors. • • G:\Economic Development\Press Releases\2003 EDAM Award.doc CITY OF COTTAGE GROVE MINNESOTA • To: EDA Members From: Michelle A. Wolfe, Assistant City Administrator !l v Date: June 2, 2003 Subject: Calendar EDA Meeting July 8 Chamber Business Luncheon July 16 11:30 a.m. County Point EDA Meeting August 12 • EDA Golf Tournament August 19 EDA Meeting September 9 G:\Economic Development\E D A\Documents\2003\June Calendar.doc 110 -,,,,:, ,_„„-i--::.-_-__ ,----_ ,,_--i-:; .--,..7 - - 7 -::- -'' ' --' '''': - '- ' '' ":- -:- 44 C ak i',..',_..g,,.-2-4--:--;-,7-- --..i.,-,.-„; ., _.',.. - ' '-''' ' -- - . ,..,,,, _ _,,, ,,,.... ,.....,,, ,,,, „7,,,,.:.,,,,,si c.7..,i 4 „,:,, ,,„,,, , ,-,, , '''''''' , 1 "'''''' ' Mit al Jim Wl lcbtt, President 1 Sandy mayor yor 2 '-- g Glen[ Ieyer4 Member 114 -- "` _ Dick Pederson,_(Member -� 1 Gerry llfl'etoma em Member we/ om ber Z Flei Va.741-.1.-L'7r a.0 'L''. ., o With the advent of 2002, and a softenin of the national economyb innin in 2001. new �+ 9 beg g industrial starts slowed from the prior year. In exchange, however, the local retail sector experienced a renaissance of sorts. Combined, a total of $25,989,351 in commercial, ` industrial, and institutional building permit value was realized during 2002. Over the 2001- 2002 period C/I permit value has totaled $85,302,583 exceeding that of any other two year period in Cottage Grove's history. To this w.e added 296 new housing starts in 2002 up fromtb the prior year total of 182 units. Total building permit value for the year. was $91,526,613. This rate of value growth was slightly behind that of 2001. As with C/I permt value the 2001-2002CD period in total value production also exceeded all other prior like periods with a period total of irimi $196,367,622. On February 12, 2002 the Economic Development Authority (EDA) identified six primary goals for the next four years. These goals were reflected upon by the City Council, which in turn identified five primary goal areas for 2002 on March 10, 2002. These were revisited on November 26, 2002 for the 2003 fiscal year. Both the Council and the EDA are continuing anCD emphasis on commercial and industrial development, transportation and transit, housing development, and maintenance and enhancement of public facilities. New Council priorities �, have been added for additional operational strategic and fiscal planning and governance. Facilitation and attraction of quality development within all sectors continues, therefore, to b receive a high level of priority by both the EDA and City Council. Following is a brief description of projects and project areas currently under development within the community. 1 !,, rte ,----,. .- --,:..777-_,-17--7-'-'-'-'7-'71'; - ma , -7' =!:'-'-'c � s -+ „� Uol �. " ,;,-;, ', .:.: 1J-<___ 8on 4 --i-�.<.,. �-`e.LCs�'�-5,= � _ '�z .�„�`b,.s`�.g*..� ✓'t9 .�Yi� @'i tlm.v�w..0 vum...1��'�..�-�wuL..s..s.�" �...a_._..e..... 2-«.,.---"L''''''m- ..v__.e n._....,..�-.�.-. ._. - Cottage_ • New Stasirw ea,Ivclu., o-wte/Depot; Wal-greens-, ' - TCF�a , a nd't3 yrwatii-tena,vitQraiowary Ce tert e . • Majb-r redevelop wientprolecc-uncle^way eite`t r+ J ` ?✓ K e�y v t. . . . KohL4-Depart'M.e.Y1.tStUre4 The Gateway North Redevelopment District is a 365- acre area located at the interchange of Highway 61 and 80`h Street. Originally proposed by the City Council on February 13. 2001, it was formally designated in a joint meeting of the City Council and Economic Development Authority on March 28, 2001, and followed by creation of a redevelopment tax incre- ment district on July 26,2001. The redevelopment district includes all four quadrants of the Highway 61/80th Street : interchange which included 506,674 square feet of retail and * 7-7--c41 buildings in addition to public properties and a small r amount of residential property at the time of District creation. _'s= Creation of the Redevelopment District was intended to signal to I a � property owners, and others, the City's intent to pursue redevel- _. opment activities within the district as opportunities arise. Fur- ther, ur ther, creation of the smaller tax increment district is intended to provide a financing mechanism for public expenditures associated with infrastructure construction or land q ?. acquisition within the project area. Development activities have occurred quite rapidly following designation of the district. The City entered into a development agreement with Kohl's Department Stores in July 2001, which will result in a construction start of July 2003. During the interim period the City has packaged the property required for the project site in addition to construction of a new roadway corridor for Hardwood Avenue that will connect the 80th Street commercial area to the residential development area at 70th Street. Infrastructure construction began during the fourth quarter of 2002. The 170,000 square foot Grove Plaza Shopping Center is currently being reconstructed following an April 2002 development approval. Included is removal of approximately 60,000 square feet of the existing shopping center in exchange for a 116,000 square foot Home Depot store with a February 13, 2003 grand opening. The remaining 42,000 square feet of small tenant space will be renovated and a 28.255 square foot outlot remains available for future development. The City provided enhancements to the storm water system as part of this redevelopment and will provide partial funding toward rehabilitation of the small tenant spaces. Sandwiched in between the Kohl's and Grove Plaza developments is a 5.1-acre site that up until November 2001 was home to the Rose of Sharon Church.The church has since constructed a new facility 70th Street and Jamaica Avenue. On its'previous site is a new 15,120 square foot Walgreen's store that opened in July, 2002, a 12,700 square foot retail center and a 4,500 square foot TCF banking facility, both which opened in December 2002. As a result of these three developments, taxable market values within the tax increment district will at least double to $26,324,300. Additionally, the City is currently working on two more redevelopment phases, the first of which is expected to add over$11,000,000 in taxable market value within the next two to three years. Included in the next phase are three new development parcels adjacent to the Kohl's project, one of which is under the control of the City. Development review of three additional parcels is currently underway within the same quadrant. A third phase,should the opportunity present itself, would be redevelopment or rehabilitation within the southwestern quadrant of the District. • New ttot2—New Restaara.ntl > .:.-t✓a '' ,..;_,Lt_ � . craw e- ..{:.a,l ,t, • A cixiitternaLCanutteraab Another commercial hub of the City is located at the Highway 61 interchange with Underway! Jamaica Avenue, one mile south of 80e Street. Up until 2002 there were 561.779 square feet of retail and office users in this area. At the periphery of this area is a new 76 room Country Inn and Suites Hotel which opened in July 2002. Additionally a 4,974 square foot Applebee's Restaurant opened in December in front of the Hotel. These two projects are located on a former 3.1-acre remnant parcel,which had been owned by the school district on East Point Douglas Road.The City brokered the initial real estate transaction that provided the opportunity for these two developments. Within the same district is the Pine Grove Development, which contains five commercial parcels. Two of these parcels were developed in 2001 with a total of 23.047 square feet of office/showroom space. A third parcel has been purchased by Wells Fargo Bank with construction of a new facility scheduled for 2003. The other two pads are developed with a future office use and a restaurant use in mind. At present those development opportunities remain available. I. - 9 i - :- _-_ : cc‘ttisge„GmverEDA „__, r.„ 2_, --'--,_. ,_ .. 44 civ'TPARTNERS �"�� ...,E -®"rte' -'4,40.1,,i-1::-, tzl ' Y- - - '�sss �' I� • T, n u=p"i, '-'44-' 1f With the adoption of a new Comprehensive Plan in 2000 the City 0 .. 7 F_.. r ,..- x .. � _ _�� � � -� Council created a new Neighborhood Commercial land use - — -= ""r :� --7--4,'_.7..- designation. As a result, in 2001 and 2002 two Planned Unit 4 4 Developments including approvals for just under 30,000 square ........ _ . . ,,,....,...,,_• 4„:„....„. feet of commercial square footage were made available at 70 r L# - - --. Street and County Road 19 and again at 70th Street and Hinton M ;a ( i _ m,,; Avenue. The County road 19 location,the Shoppes at Almar, is r .,„..„L_r„....... ... _ - �� W �, currently under construction. 1 -;.: -f t '..,. ""x,a9 �`".74,Z "w `$ ''Wal"` „,.. ...,,,;;_,,,44:1Fille_tw.,.. ..i .„7,..74,..,.#,,t,i..„,„..,3;,.._.„:„ _.... ,,,,,, ..,,,;.:-,-,. y _ .,+.."t`L `L.",t-t w C.' _ ; iii tk , .< ,. , '� -j asc • I nd ustr a.L Pa.rk.Cant'n to grow and/Addy ` h - b New Z agAr.e. .s! • graded,Site*are/Now Ava.Cla..&eA ,,,, ,, -- - -iii 1 ' ....- _ .- , _ . , __ _ While the City has designated the land south of Highway 61 and west of the 1,750 acre 3M campus as the Cottage Grove Industrial Park for decades, development of the Park did not move forward until 1998 after the City had op- tioned 40 acres in the prior year. As a result of that land option the 227,000 square foot Renewal by Andersen facil- ity opened in 1999 on 30 acres at Jamaica Avenue and 100th Street. The Renewal project won the 1998 Business Retention Project of the Year from the Economic Development Association of Minnesota(EDAM). The 11,000 square foot United States Postal Service Annex followed this project on 2.206 acres and the 15,200 square foot CCE Technologies manufacturing facility on 2.468 acres on 95th Street. This past year (2001-2002) three more projects were completed including the 70,000 square foot distribution/office facility for Tradehome Shoes on 4.59 acres, the 42,000 square foot Advance Corporation on 6.6 acres and the 80,000 square foot American AgCo facility on 5.97 acres. These three projects, all located along 97th Street,jointly won the EDAM Best Business Attraction Award for 2002. The industrial park also realized a 187,000 square foot expansion of the Up North Plastics facility, located north of 95th Street and west of Jamaica Avenue. Further,the City has prepared for additional opportunities by grading twenty acres for future development along both 95th Street, east of CCE Technologies,and along 97th Street, west of Ameri- can AgCo. As a result we have several lot configurations available ranging in lot depth from just over 300 feet to just under 700 feet. For larger projects, the City can make parcels available off 100th Street ranging up to 100 acres in size. As of the end of the year the City had entered a letter of intent for construction of the 30,000 square foot Schmid Packaging plant for 2003 construction on 95th Street east of CCE Technologies. ,,✓d,,l r ai'I ti✓'+�irk-'y z ,t L-V -,-k,t-f' c-1. 't.., r • New Treatment i LLLYLt Linder Co L truct�L1TYV� i^° -4,--i-.-0 - r- -?- < V t • New Interceptor by mid--2004! The Metropolitan Council Environmental Services Division (MCES) provides wastewater treatment for the entire Minneapolis/St. Paul metropolitan area. One of the nine metro treatment plants is located in Cottage Grove within the perimeter of the 3M Cottage Grove campus at the east end of 110th Street, east of Ideal Avenue (two miles south of the industrial park). This 2.5 million-gallon per day(mgd)plant is currently under reconstruction which will result in a 10 mgd capacity early in 2003 with an ultimate capacity in the 15-20 mgd range upon completion of the project. Concurrent with that development is a new MCES wastewater interceptor to be completed along County Road 19 by mid 2004. As a result of this project the City is preplanning for development opportunities and phasing, the completion of which is timed with availability of the interceptor. i f Svc' -r143n. : y s=in'ami Multtple/state., ccuinly s�.rt4 lona).road.ii rnprovevrt,evttti • New Park.Er dgy a.c%lLty! The two major projects impacting Cottage Grove over the next few years are the$252 million MnDot Wakota Bridge/Highway 61 improvement and the Washington County Hinton/Tower project. Additionally, among municipal improvements the City is in the midst of the next phase of our local pavement rehabilitation project in 2002-2003. These same years also include construction of the new 53 million Hardwood Avenue, which will connect the Gateway North Commercial Redevelopment District with the West Draw residential development area at 70t"Street. Construction on the Wakota Bridge/Highway 61 project began in May 2002. The project includes reconstruction of Trunk Highway 61 from Carver Avenue in St. Paul to St. Paul Park Road in St. Paul Park. All three of the signalized intersections within the City of Newport will be removed in favor of a new interchange near Glen Road. North of 1-494 the existing signal at Highway 61 and Carver Avenue will be replaced with a right-out to northbound 61 with a new interchange at a new Maxwell Avenue/Bailey " road connection. All of this will upgrade Highway 61 to freeway standards within the entire project area by the end of 2003.The St. Paul Park interchange will be completed one year later, The entire project, which includes doubling the size of 1-494, will be complete by 2007. The Washington County Hinton/Tower project includes construction of a north-south highway connection between 65`"Street in Cottage Grove to north of Military Road in Woodbury. With reconstruction of Hinton Avenue between 65th and 70th the result will be a 4-lane roadway from 80th Street in Cottage Grove to 1-94 providing an enhancement to area commuters desiring an alternative to Highway 61. The project is scheduled for completion during 2003-2004. The$9.5 million Cottage Grove Thompson Grove pavement rehabilitation project completes a multi-year pavement reconstruction program within the community. included will be complete reconstruction of every municipal roadway within the southwest portion of the community. Underground infrastructure will be replaced as necessary throughout the project as well. Construction will be complete by the end of 2003, as will that of Hardwood Avenue. Hardwood Avenue is being facilitated by the Gateway North redevelopment, providing a conduit for residents on the north side of the community to access retail opportunities within the central business district of town. Also transportation related is the creation of an approximate 500 stall permanent park and ride. The park and ride will be located along West Point Douglas Road, near the Highway 61/80th Street intersection. This improvement, coupled with the expansion of express bus service to downtown Minneapolis is projected to further increase ridership from the community. Over 290 Neu 1401444v, nits,igt.20021 • %t.(' a vt.e; Residential construction in 2002 was somewhat more rapid than that experienced in 2001,which included 182 new residential units. In both years the split between new townhome versus single family homes has been almost even. Although new townhome projects such as the 38 unit Almar Village, located at County Road 19 and 70th Street, and the 124 unit Pine Grove at Cottage Grove project by D. R. Horton, north of East Point Douglas are almost complete, there have been new attached housing projects approved. Orrin Thompson will be finishing up their 138 unit Lodges at Pine Summit most likely in 2003, but will continue providing attached doubles,townhomes and lodges in their new 290 unit project located at the corner of 70th Street and Hinton Avenue. As of year-end 2002 we saw construction of 296 new housing units, 175 of which were attached units. The West Draw area of the community has also seen an increase in new single family development approvals as Pulte Homes received approval for a 116 lot- 3`d phase of their Timber Ridge project. The 1st and 2"d phases are under construction and contain 49 units at the corner of Harkness Avenue and 70th Street. Newland Communities received approval for 175 urban and 9 rural lots within the Highland Hills project, located north of 65th Street. This project, as well as the Pulte project will have sites graded and infrastructure installed to permit home construction in early spring 2003. Orrin Thompson continues to construct within their 205 unit, 177-acre, single family development. Pine Summit.They are in their 5th phase of construction with approximately 54 home sites still available. Two local builders, Custom One Homes and Kingsborough Homes have sites available in their two projects, Hidden Valley and Kingsborough Woods. The City is developing pians for the next MUSA expansion within the community, which will be located in toe eastern portion of the community. The East Ravine will open up approximately 3,500 acres for future development opportunities, primarily residential. _ Timing for completion of the planning exercise is scheduled to coordinate with the expansion of the regional treatment plant and interceptor construction.