HomeMy WebLinkAbout2003.08.12 PACKET CITY OF COTTAGE GROVE
•
ECONOMIC
Secretary
DEVELOPMENT
AUTHORITY
AGENDA
AUGUST 12, 2003
7:30 A.M.
1. Call to Order •
2. Roll Call
3. Approval of July 8 Regular Meeting Minutes
4. Business Items
A. Project Updates
B. Gateway Update
C. Highway 61 Drainage Project—Appraisal Update
D. Golf Tournament Update
E. Calendar
5. Miscellaneous Business Items
6. Adjourn
Next Meeting Date: September 9, 2003
•
E:\Economic Development\E D A\Agendas\2003\August 12 Regular.doc
• CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUTHORITY
MINUTES
July 8, 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
Dick Pederson, Authority Member
Mike Wennen, Authority Member
Al Boche, Authority Member
Members Absent: Glen Kleven, Authority Member
Others Present: Ryan Schroeder, City Administrator
Michelle Wolfe, Assistant City Administrator
Steve Barrett, Management Analyst
Scott Johnson, Management Analyst
Colby Johnson, South Washington County Bulletin
APPROVAL OF MINUTES
Authority Member Sandy Shiely moved to approve the June 10, 2003 EDA Minutes.
Mike Wennen seconded the motion and the motion carried unanimously.
Authority Member Mike Wennen moved to approve the June 24, 2003 EDA Minutes.
Dick Pederson seconded the motion and the motion carried unanimously.
•
Economic Development Authority- Minutes
July 8, 2003 •
Page 2
BUSINESS SUBSIDIES PUBLIC HEARING
EDA President Jim Wolcott opened the Public Hearing at 7:35 AM. Hearing no
comments, the hearing was closed at 7:36 AM. Michelle Wolfe explained to the EDA
that the original Business Subsidies criteria were adopted by the EDA in early 2000. The
deadline for the new criteria was May 1, 2003. Staff waited for other changes in the state
statute before moving forward with the hearing. No changes were made during the 2003
legislative session. The City Attorney drafted the updated language. EDA members
were comfortable with the $11.00 per hour standard for wages and the updated language
for business subsidies. Dick Pederson made a motion to approve the business
subsidies agreement. Al Boche seconded the motion and the motion carried
unanimously.
PROJECT UPDATES
Michelle Wolfe informed the EDA that the city received two new inquiries for restaurants.
They will tour the city in the near future.
GATEWAY
Ryan Schroeder informed the EDA that the city closed on the US Bank and 1501 •
Partnership properties. The closing on the Kohl's property is scheduled for July 10th.
Some ponding and temporary access need to be maintained completed as part of the
closing. The city will have the right to use temporary ponding on the site until January 1,
2004. The Kohl's Store is scheduled to open in August of 2004. The curbs for the new
streets will be completed by August 1st. The blacktop will be completed in late August.
Also, the 80th Street intersection will be reconstructed this fall. 80th Street will remain
open during construction and traffic will be routed to one side of the street during the
construction. The Oak Park Commons developer recently passed away. It is unclear
when this project will be moving forward.
GROVE PLAZA
A new facade will be constructed for the small tenant space in the near future. Also, a
new 4,200 sf building will be constructed near Hollywood Video.
HWY 61 DRAINAGE
Steve Barrett informed the EDA that appraisals had been received for the Eller Media
and Joe-Bob properties. The total of the two properties is $213,000. Staff wanted to
know how much the EDA was comfortable with spending on the project.
Mr. Schroeder informed the EDA that the appraiser took the approach that the Joe-Bob
land is developable. In a 1997 Storm Water Study the city did plan to use this site for
future storm water ponding. Storm water from future development from the Hwy. 61
corridor would run to this site. Jim Wolcott mentioned that the ponding area is needed •
for future development. Mr. Schroeder also mentioned that the ponding that is being
• Economic Development Authority- Minutes
• July 8, 2003
Page 3
discussed would need DNR approval because of its proximity to wetlands. Mayor Shiely
asked if a second appraisal would be necessary. Mr. Schroeder did not think one would
be necessary. Staff is comfortable that a reasonable outcome can be negotiated at least
on the larger parcel. Gerry Weingartner asked if the city should speak to the DNR about
the property first. Mr. Schroeder said the investment will be reasonable if even a few
acres can be used for ponding. It is expected that the property would add 5 to 6 acres of
ponding outside the wetland area. Mr. Weingartner asked if the project was feasible
without the Joe-Bob property. Mr. Schroeder informed the EDA that it was needed to
complete the ponding plan without use of the MNDOT right of way. Mr. Wolcott asked if
the property owners were aware of the plans. Mr. Schroeder explained to the EDA that
all of the parties were informed about the plans two to three years ago. Staff asked the
EDA for permission to purchase the Eller property and negotiate with Joe-Bob Properties
to buy their parcel. Dick Pederson asked if the city had researched the property. Ryan
Schroeder informed the EDA that tests for ponding had been conducted by the city.
Mayor Shiely made a motion to authorize staff to purchase the Ellers property and
negotiate on the Joe-Bob Properties parcel. Dick Pederson seconded the motion and
the motion carried unanimously.
2002 ANNUAL REPORT
• Staff has completed and mailed the 2002 Annual Report. A similar format will be
followed in 2003. Ryan Schroeder has received positive comments on the bullet points
and the format.
2003 EDA GOLF OUTING
There are a total of 11 sponsors and 72 golfers to date for the 2003 Golf Outing.
EDA WEB SITE
EDA members asked if local businesses could be listed on the web site. Steve Barrett
informed the EDA that the Technology Task Force looked at listing city businesses, but
decided to focus on city services and added a link to the Chamber of Commerce site for
listings of area businesses. Michelle Wolfe also commented that it wes an all or nothing
type of policy. All businesses from the city would need to be included if the city offered
this to local businesses.
EDAM AWARD
The city received their second EDAM award in a row and now has a total of three
awards. This year the city received the award for their postcard ad campaign. Next year,
staff might submit the annual report or the Gateway Redevelopment project. A press
release about the award was sent to the media.
•
Economic Development Authority- Minutes
July 8, 2003 •
Page 4
PROMOTIONAL FILM
Ryan Schroeder was recently contacted by a media company to create a promotional
video about Cottage Grove. He asked the EDA if they would be interested. Al Boche
suggested burning a promotional video on a CD that could be included with the
marketing folders. Jim Wolcott thought it would be a good option to look at absent the
current budget cuts. Mr. Schroeder also informed the EDA that under the proposal,
CNBC would also put the city on a program this fall and the city would also receive the
rights to reproduce the 7 minute video. EDA members thought that a promotional video
could be done more cost effective locally. Mayor Shiely mentioned that Hastings is
• currently running ads on cable TV. Dick Pederson thought this would be a good
opportunity for a local company to produce the segment on the city. Mayor Shiely asked
staff to contact Hastings to find out how much the ads cost. Al Boche will drop off the
marketing materials that his company uses with staff.
ADJOURN
The EDA adjourned at 8:15 a.m.
Respectfully submitted, •
Scott Johnson
Management Analyst
•
City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle Wolfe, Assistant City Administrator fitht,9
Date: 8/7/2003
Re: Project Updates
Attached is the list of active projects. Since the July meeting we received five new
inquiries.
These include two sit-down restaurants, one body shop, one expansion of a current
business, and one 10,000 sf office/warehouse/special use.
• Attachment
•
G:\Economic Development\E D A\Documents\2003\August Proj Update.doc
ACTIVE LEADS QUERY EDA PACKET 8/4/2003
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 8/4/2003
• 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
ED-03-017 Restaurant 1 acre
ED-03-018 Body Shop
ED-03-019 Restaurant
ED-03-020 Industrial
•
•
Page 2
City of Cottage Grove
•
Memo
To: Economic Development Authority
From: Ryan R. Schroeder
CC: Mayor and City Council
Date: 08/07/03
Re: Gateway Redevelopment District Update
There are several minor updates to present throughout the Gateway District. These
are:
1. G-Will Center. Hanson's Auto has received a Council approval for a minor
rehabilitation effort. The rest of the Center will realize a phased refurbishing of
the site. They plan on demolishing the rear canopy and adding a new façade
wrap to cover the old canopy area with painting of the roof to match the G-Will
roofline and also the sign band to match the south wall by Latadah. They intend
to combine dumpsters to a shared location and will provide wall pac lighting
where the canopy lighting currently is. Awnings over new doors, parking and
landscaping improvements along Belden will be in future phases.
2. Cottage Square. Developers continue to express interest in a mixed-use
redevelopment of this site however, we do not have a development agreement to
propose at this time. Hadley Avenue reconstruction has begun. Upon
completion of that project streetscaping improvements will be proposed. We
have requested that MNDOT propose a location for a 'Welcome to Cottage
Grove" sign for that side of the highway.
3. Highway 61 ponding. We have been in contact with both property owners of
parcels north of 80 Street, west of Highway 61 regarding potential property
purchases. We will have a separate agenda item on this matter.
4. Hamlet Park ponding. The City Council has been informed of a desire from
MNDOT to cause the City to construct storm water ponding south of Hamlet
Park. The EDA began discussions of this project about a year ago when we
proposed an expansion of Hamlet Park, which would then be bordered by the
. storm water system. Most recently MNDOT has become concerned that
• Page 1
Highway 61 is in danger of experiencing a flooding condition absent construction •
of additional ponding and an outlet for the system (the pond/flume system
between Hamlet and 95th is yet to be constructed which then connects to the
existing industrial park system). Enclosed is a map showing a draft of the
pond/flume system that will soon be under consideration by Council. An issue for
the EDA is the impact of this system on existing industrial land, which is greater
than originally contemplated. Preliminary numbers suggest that a park
expansion that could be a catchment area for large storm events could
encompass 12.5 acres with another approximately 20 acres of pond/flume with
9.2 acres suggested as a possible extension of Hamlet Avenue, currently zoned
residential. An additional 4 acres is located west of the existing sanitary sewer
trunk line and is effectively undevelopable at this time. That totals 46 acres of the
79-acre WAG Farms property leaving roughly 33 acres available for industrial
development. While use of that amount of land would be, perhaps, counter to
expected EDA objectives of maximizing development potential within the
industrial park a resulting advantage would be a buffer between future industrial
and existing residential that ranges up to perhaps 800 feet. It should also be
recognized that most of this 46 acre reduction in industrial land appears to be the
only option available to the community (storm water retention for the 4840 West
Draw, Gateway and Thompson portions of the community must occur within that
portion of the community south of Hamlet Park unless the City creates ponding
out of existing residential subdivisions, which would not be expected to be a
reasonable alternative on its face). •
The nine acres set aside for an extension of Hamlet Avenue could be converted,
in part towards ponding instead. However, given the existing sewer main and
existing topography less than half of that nine acres would be available for a
storm water use. In addition, the Hamlet Park ballfield expansion could be
deleted from the plan in favor of a larger ballfield complex elsewhere within the
community. An observation, however, is that the expected land price elsewhere
within the community would not expected to vary to any significant extent from
that which is expected here. Further, the ballfields would be proposed to be
constructed to provide for water holding during extreme storm events and
therefore is expected to provide a benefit to our storm water issues within the
Hamlet area.
5. Grove Plaza Shopping Center. Grove Plaza has submitted for building permit
approvals for both the small tenant space remodeling and for the 4200 square
foot building proposed behind Hollywood Video (proposed with three, 1400
square foot bays).
6. Kohl's. The City sold the 10.02-acre parcel located off 80th Street, at East Point
Douglas Road to Kohl's on July 14, 2003. We retained access, grading and
drainage easements to provide for temporary ponding for Hardwood Avenue and
access to area properties west of the Kohl's property. We have received
construction plans and construction is expected to commence on or about4111
•Page 2
• September 1, 2003. The Grand opening continues to be scheduled for August 1,
2004. The property was sold for $1,604,111 plus a contribution toward tree
mitigation (over and above the project-landscaping plan) for $98,587. Total land
acquisition is budgeted at $3,358,950. After land sale and MSA proceeds the
remaining $1,229,839 is provided by project generated tax increment revenues.
The taxpayer is not contributing toward the development of this site.
7. Hardwood Avenue. Hardwood Avenue is graded from just south of 70th Street to
just north of US Bank. Curbing is expected to be installed in August with paving
occurring between August and mid September. This roadway project is funded
by Minnesota State Aid funds including an allocation toward property acquisition
of approximately $525,000 which represents that portion of total Gateway land
acquisition that was necessary for this road project. The rerouting of East Point
Douglas Road and the construction of Hardwood Court and reconstruction of
Harkness Avenue is all funded by Gateway project revenues. Hence, all of these
roadway improvements are being completed without a contribution from local
taxpayers.
8. Oak Park Commons. This project was expected to be under construction at this
point in time, however, it is currently subject to a probate action. We have been
notified that that process is expected to be complete by the end of September
after which the project is expected to proceed.
• 9. City Oakwood Commercial Site. The EDA has approved a purchase agreement
template for this site. The City Council has not yet considered that
recommendation. At the present time it is expected that Council will be asked to
consider either this template or a purchase agreement based upon the template
within the next couple of months. Following discussions at the EDA table we
have pursued negotiations toward a possible purchase agreement with
restaurant end users to gain an anchor for the site.
10. Fratalone/Acom LLC properties. We have participated in discussions with
owners of property west of Kohl's toward a possible future development over the
past several months. If a development were to occur in this area requiding and
rezoning would need to occur. Before that we will need resolution of storm water,
and other utility extension issues (#'s 3 and 4 above).
Board Action: Most of the above items are intended to update the Board on ongoing
project status. There should be discussion/direction provided to staff on the ponding
issues noted in item#3 and discussed in item#4.
F:\USERS\RSCHROED\August03EDA Gateway.doc
•
• Page 3
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Hamlet Park Expansion - Draft 3
A
9-5-02
•
CITY OF COTTAGE GROVE
_A MINNESOTA
To: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
From: Kim Lindquist, Community Development Director
Date: June 16, 2003
Subject: Hamlet Avenue Road Extension
Introduction
Over the course of the last year, due to the discussions about Hamlet Park expansion and be-
cause of the pavement management program, the question has been raised about extending
Hamlet Avenue. Currently the road dead-ends and does not have a regulation cul-de-sac or
turn-around. The land south of the road terminus is zoned R-3, Single Family Residential, and
guided for residential. The parcel is owned by WAG Farms, as is the industrially zoned land to
the east. Planning staff has developed a couple of alternative layouts for potential development
of the southern parcel. They are attached for the Council's information and discussion.
Discussion
Attached are four drawings depicting slightly different lot layouts. The number of single family
lots range from 23 to 26. The drawings were done mimicking lots sizes found in the Pine
Summit neighborhood. The site is 12.179 acres. Under the differing single family concept
plans, site densities range from 1.8 to 2.13 units/acre. Topography of the site was not taken
into consideration for the preliminary layouts and that may impact the buildability of some of
the lots. The property is fairly steep on the west side and may preclude development. The
drawings also do not take into consideration if additional ponding for the development may be
needed.
Also attached are three twinhome layouts. The building footprint used was the twinhome
structure built in the Kenco project along 96th Street. The spacing between the twinhomes is
greater than that found in the Kenco project, even in the more compact layout. The density of
development in each of the three twinhome concepts are 3.61 units/acre for the 44-unit project,
4.1 units/acre for the 50-unit project, and 4.4 units/acre for the 54-unit project. The R-3 zoning
district does not permit twinhomes, and should the council wish to pursue this option, a rezon-
ing to R-4 or PUD would need to occur.
A third option is to provide a cluster home project. The R-3 zoning district allows for zero lot
line single-family dwellings. Therefore, the units could be similarly spaced to those shown for
the twinhomes; however, the units could not be attached and would have only one unit. The
number of units that could be available would be dependent upon the size of each unit. Staff
has provided one drawing showing a cluster home, or patio home arrangement, using the patio
home size found in the recently approved Mississippi Dunes Estates project.
Honorable Mayor, City Council, Ryan Schroeder
Hamlet Avenue Road Extension •
June 16, 2003 S
Page 2 of 2 •
Most likely the extension of the roadway will cause some consternation to residents used to
living on a dead-end and receiving little traffic. However, all the layouts continue to promote a
dead-end cul-de-sac without providing a public through connection elsewhere. This raises an
issue about the length of cul-de-sacs and the new fire code access requirements. The current
road is approximately 500 feet in length without any extension. The extension would create a
cul-de-sac over the 750-foot maximum length. In review of the park plans, it may be possible to
gain a secondary emergency access from the park, one that would be available to emergency
vehicles but not for public access. Existing topography makes it too difficult to gain access to
the west or south. Further research needs to be done on this issue.
It is difficult to estimate what type of housing values and housing type would occur in the area.
The existing values in the neighborhood, according to Washington County assessment re-
cords, average $139,652. New single family construction in the city is approximately $287,000.
US Homes has indicated that their new twinhomes will be similarly valued, if not higher. Given
the costs of new construction, any type of development depicted in the attached concepts
should be able to meet or exceed current neighborhood property values.
Conclusion
411
Staff is asking direction from the Council regarding future development of the parcel and the
potential roadway extension. If the Council is interested in extending the road system, a signifi-
cant amount of additional design work is needed. Direction as to which layout, potential density
or number of units, and type of housing would be appreciated.
Recommendation
Provide direction to staff.
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COTTAGE GROVE, MINNESOTA ,,�yya..r.o �� .�: �.,�
HIIRDMgOp AVENUE CORRIDORrIPROvEYEMSIiii�nsrf�a n••: IJ ...� �.
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• CZCity of Cottage Grove
Economic Development Memo
To: Economic Development Authority
From: Steven Barrett, Management Analyst
Date: Friday, August 8, 2003
Subject: Update — Highway 61 Drainage Acquisition
Discussions are continuing with Clear Channel Communications regarding the
acquisition of their property along Highway 61. As you know, Clear Channel has made
a proposal which could save the City some significant acquisition costs in exchange for
allowing them to update their sign structures.
I will be conferring with their attorney on Friday, August 8 to discuss three
variables to the deal:
• • Limiting the square footage of the updated structures to present levels;
• Possibly moving the structures further north along the highway; and
• Preliminary discussions of access, design standards, etc.
I will provide a verbal update of these discussions during the meeting on
Tuesday, August 12.
•
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City of Cottage Grove
•
Memo
To: EDA Members
From: Scott Johnson
Date: 8/7/2003
Re: EDA Golf Outing
The 2003 EDA Golf Outing will take place on August 19th at River Oaks Golf
Course. The invitations for this event were sent out the week of May 12th
Follow-up letters on the golf outing were sent out the last week in July.
Maps of current and future economic development opportunities will be on
display before the tournament begins and during the banquet. At the banquet,
Ryan Schroeder will update guests on projects and future economic development
opportunities in Cottage Grove. Also, EDA President Jim Wolcott will hand out
awards and conduct the prize raffle.
Currently, 100 people have agreed to golf in the event and 18 organizations have
agreed to sponsor the event. Below is a list of the organizations that have
signed-up to sponsor the 2003 Golf Outing:
Bronze
Mainstreet Bank
Apache Chief Theatre Company, LLP
MEDP
Silver
Olson General Contractors
Welsh Companies
MMIC Benefits
• First Industrial Realty Trust, Inc.
Newland Communities
G:\Economic Development\2003 EDA Golf Outing\August 12 Memo.doc
Wells Fargo
•
Ehlers & Associates
WSB & Associates
Merchants Bank
Anchor Bank
TKDA
3M
KKE
Gold
Xcel Energy
Platinum
Bonestroo, Rosene, Anderlik, and Associates
•
G:\Economic Development\2003 EDA Golf Outing\August 12 Memo.doc
I
CITY OF COTTAGE GROVE
MINNESOTA
•
To: EDA Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: August 7, 2003
Subject: Calendar
EDA Meeting August 12
EDA Golf Tournament August 19
EDA Meeting September 9
EDA Meeting October 14
EDA Meeting November 11 (Reschedule—Veteran's Day)
• EDA Meeting December 9
G:\Economic Development\E D A\Documents\2003\Aug Calendar.doc
•