HomeMy WebLinkAbout2002.06.11 PACKET CITY OF COTTAGE GROVE
Y
•
ECONOMIC
Secretary
DEVELOPMENT
AUTHORITY
AGENDA
TUESDAY, JUNE 11 , 2002
7:30 A.M.
1. Call to Order
2. Roll Call
3. Approval of May 14, 2002 Minutes
• 4. Business Items
A. Gateway Development District:
• Purchase Agreement for Gateway Development residential
properties
• Eminent Domain Resolution for the commercial properties
• Grading and/or development of Hardwood/Harkness ROW
• Authorize amended redevelopment agreement
• Grove Plaza Pond Landscaping
• Amendment to Grove-Rainbow Development Agreement
B. Project Updates
C. Hamlet Park Expansion Proposal
D. 2003 Budget Approval
E. Senior Housing Task Force update
F. Marketing: most recent EDA postcard
G. EDA Golf Tournament Update
H. EDA Accomplishments packet
I. Updated "For Sale"/"For Lease" lists
J. Park and Ride/Transit Update
K. Calendar
5. Miscellaneous Business Items
6. Adjourn
• Next Meeting Date: July 9, 2002
J:\Economic Development\EDA Packets\2002\Agendas\June 11 Regular.doc
• City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Gateway Development District
Attached are a number of documents relating to six different actions by the EDA (as
outlined on your agenda). The documents include:
III1. Memo from City Administrator Schroeder dated June 3, 2002 entitled "Gateway
Development District".
2. Purchase Agreement for the residential properties.
3. Hardwood Avenue Schedule
4. Various maps
5. Resolution authorizing Eminent Domain Proceedings to Acquire Certain Real
Properties (commercial properties).
6. Memo from City Administrator Schroeder dated June 3, 2002 entitled
"Gateway/Grove Rainbow/Home Depot". The landscape bids amounts will be
available at the meeting.
7. Memo from City Administrator Schroeder dated June 5, 2002 entitled
"Amendment to the Grove Rainbow Development Agreement."
8. Amendment to Contract for Private Property.
A copy of the amended development agreement with Kohl's was not available at the
time this packet was prepared. It is being finalized and will be available at the June 11
meeting.
Attachments
F:\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Gateway.doc
•
Memo To: Economic Development Authority •
From: Ryan R. Schroeder
Date: June 3, 2002
Subject: Gateway Development District
At the last meeting of the EDA the Board authorized purchase of a little over
eight (8) acres of property contingent upon a Kohl's Department Store
redevelopment within the Gateway District. This, along with subsequent Council
approval of the same action, moved this project off what previously had been a
significant hurdle in front of the Kohl's redevelopment. Since that time staff has
negotiated final terms of the agreement. The terms are as presented at the May
14 meeting.
Requested Action: By motion authorize the President and Executive Director to
enter into the attached purchase agreement.
Additionally, on May 14 staff informed the EDA that we would attempt to
negotiate purchase agreements on the commercial properties. The properties
total about 2.5 acres plus there is another approximate 1.5 acres of right of way
to be acquired off remaining commercial pieces. We have begun these
negotiations. However, as we have reported before to keep this project on
schedule (attached) we would ask that the EDA adopt condemnation resolutions
for filing later in June should acquisition discussions not proceed in a timely •
fashion.
Requested Action: By motion direct initiation of the eminent domain process
(currently checking on some procedural matters relative to this process; we will
report on those at the meeting).
Further, we are finishing up design work on the road in order to gain Council and
MNDOT approval to proceed this fall with construction. As part of that we will be
taking property out of Oakwood Park to facilitate road construction. We have a
choice of grading that property with slope easements or the alternative option of
grading the property so that it could be developed further. Enclosed is a
development grading concept that would allow for the redevelopment of the
regraded Oakwood parcel. We believe such a parcel would create value to the
district by leveraging the Kohl's project in a manner that we have been unable to
accomplish up to this point in time. It would be recommended that proceeds of a
sale of such a parcel would be directed back into the park system for either
development or land acquisition.
Requested Action: Provide direction on grading and/or development of the
Hardwood/Harkness right of way.
S
• Finally, we need to provide for an amendment to the Kohl's redevelopment
agreement. At the time of this writing that work is not yet complete. We will
submit the agreement with explanation of changes at your meeting.
Requested Action: By motion authorize an amended redevelopment agreement
with Kohl's Department Stores.
Hence, requested of the EDA at this time is:
1. Authorize entering into the purchase agreement for residential property in the
Gateway District.
2. Direct eminent domain proceedings
3. Provide grading/land development direction relative to Hardwood Drive
4. Authorize an amended redevelopment agreement with Kohl's Department
stores.
•
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PURCHASE AGREEMENT •
This Purchase Agreement (the "Agreement") is made this day of June 2002 by and between
ROBERT A. & CATHY L. HOEKSTRA, KEVIN P. & JULIE B. SNOW AND EUGENE M.
& JOAN E. STOLTZ (the "Sellers") and the COTTAGE GROVE ECONOMIC
DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of
Minnesota(the"Buyer").
1. SUBJECT PROPERTY. The Sellers are the fee owners of certain real estate (the
"Property") located in Washington County, Cottage Grove, Minnesota and legally described on
Exhibit A attached hereto. This Property consists of five parcels and totals approximately 355,719
square feet.
2. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Sellers agree to sell and convey the Property and all
improvements thereon, together with all appurtenances,pursuant to the terms of this Agreement.
3. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE. The purchase price (the "Purchase Price") for the Property
shall be One Million One Hundred Fifty Thousand Dollars ($1,150,000.00).
B. TERMS. Sellers acknowledge receipt of$10,000.00 earnest money herewith and, •
on the closing date, Buyer shall pay Sellers the balance of the purchase price of
$1,140,000.00 in cash, certified check or other immediately available funds.
C. DOCUMENTS TO BE DELIVERED AT CLOSING. At Closing Sellers shall
deliver to Buyer:
1. Warranty Deeds conveying marketable title to the Property to the Buyer free
and clear of all liens and encumbrances except the following items
(allowable encumbrances):
a) Building and zoning laws, ordinances, state and federal
statues or other governmental regulations;
b) Utility and drainage easements of record which do not
interfere with the present use of the real property;
c) Real estate taxes and special assessments for which the
Buyer is responsible;
d) Easements and restrictions of record which do not interfere
with the present use of the real property; and •
R1-IB=214486v 1
CT165-18
• e) Reservation of any minerals or mineral rights in the State of
Minnesota.
2. Standard form Affidavit of Seller.
3. Abstract of Title or Owner's Duplicate Certificate of Title,whichever
is applicable.
4. Such other documents as may be reasonably required by Buyer's title
examiner or title insurance company.
4. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. The real estate taxes due and payable in 2002 shall be prorated between the parties
as of the Closing Date.
B. Seller shall pay any special assessments or installments thereof to the Property
existing as of June 3, 2002. Buyer shall pay any pending assessments created on or
after June 3, 2002. Further, Buyer shall pay any pending, levied, or actual
assessments related to the construction of Hardwood Drive.
• 5. TITLE AND REMEDIES. Sellers shall within fifteen (15) days after acceptance of this
Agreement by Sellers and Buyers, furnish properly certified abstracts of title or abstracter's
registered property certificates to the Property, certified to-date to include proper searches
covering bankruptcies and state and federal tax liens and judgments. Buyer shall be allowed
fifteen (15) days after receipt thereof for examination of said title and the making of any
objections thereto, said objections to be made in writing or deemed to be waived. If the title to
the Property or any part thereof, shall be found to be unmarketable, Sellers agree to cure such
defects and render the title marketable, by action to quiet title if necessary, within three (3)
months after receipt of written notice of such defects. Pending correction of title, the payments
hereunder required shall be postponed, but upon the correction of title and within fifteen (15)
days after written notice to Buyer, the parties shall perform this Agreement according to its
terms. It is further understood and agreed that if the title to the Property or any part thereof is
found to be unmarketable and has not been amended within the three (3) month period to make
said title marketable, Buyer may elect, after tendering performance with reasonable reservations
because of such defects, to take the necessary steps to cure the same and may deduct from the
Purchase Price the reasonable expense to incurred (or at Buyer's election, be entitled to
reimbursement from the Sellers therefor) including amounts paid by Buyer and discharge of liens
or definite or ascertainable amounts upon the Property. If such title is unmarketable and cannot
be amended within the said three (3) month period, and Buyer does not waive the same or elect
after tendering performance with reasonable reservations to take necessary steps to cure the
same, then this Agreement shall be null and void and all monies paid for this Agreement from
Buyer to Sellers shall be refunded and neither Buyer nor Sellers shall be liable for damages
• hereunder. If the title to the Property is found marketable or will be made so within the said
time, and Buyer shall default in any of the covenants or agreements herein provided and continue
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in default for a period of fifteen (15) days, then and in that case, Sellers may at their option, deem •
this Agreement terminated by giving written notice thereof to Buyer, and on such termination, all
the payments made upon this Agreement shall be retained by said Sellers as liquidated damages,
time being of the essence hereof. Nothing herein shall deprive either party of the right of
enforcing the specific performance of this Agreement, provided he Agreement shall not be
terminated as aforesaid, and provided action to enforce such specific performance shall be
commenced within three (3)months after such right of action shall arise.
6. CLOSING. The closing ("Closing") of the sale of the Property shall take place August 1,
2002, ("Closing Date"), or other date to be mutually agreed upon by the Sellers and Buyer. The
Sellers may, by written request, extend the Date of Possession by up to thirty (30) days from the
Date of Closing. The Closing shall take place at the offices of the Buyer, 7516 80th Street South,
Cottage Grove MN 55016-3195 or such other location as mutually agreed upon by the parties.
7. CLOSING COSTS AND RELATED ITEMS. Sellers will be responsible for payment of
the cost of the abstracts of title or registered property abstracts pursuant to Section 5, and payment
of state deed tax. Buyer shall be responsible for the payment of title insurance and recording the
deeds from Sellers to Buyer. Each party shall be responsible for its own attorneys fees. Sellers
shall be responsible for recording fees and deed taxes on instruments required to establish
marketable title in Sellers prior to the recording of the Warranty Deeds to Buyer.
8. WAIVER OF RELOCATION. Sellers recognize that the Purchase Price which Buyer
has agreed to pay for the Property contains a premium intended to compensate Sellers for the costs •
and expenses associated with their relocation from the Property. Sellers hereby explicitly waive
any and all relocation rights or benefits to which they may be entitled or may be found to be
entitled under state or other law.
9. RETURN OF REMNANT.
Buyer intends to utilize the Property to construct certain public improvements, including the
construction of Hardwood Avenue, and for promotion of the development and
redevelopment of the general area surrounding the Property. Following completion of
Hardwood Avenue and the grading of all adjacent areas of the Property, there will remain a
parcel containing approximately 59,000 square feet located on the north side of Hardwood
Avenue (the "Remnant Parcel") as shown on Exhibit A attached hereto and made a part
hereof. The City agrees to include the Remnant Parcel as a part of the Kohls redevelopment
project, including the same zoning. The City further agrees to provide access to Hardwood
Avenue necessary for development of the Remnant Parcel. Buyer shall reconvey by
Warranty Deed without exceptions to Sellers the Remnant Parcel to the Sellers at no cost
within thirty (30) days following completion of Hardwood Avenue, site grading of the
Kohl's development parcel and rough grading of the Remnant Parcel (the"Transfer Date").
10. CONDITIONS TO BUYER'S OBLIGATION TO COMPLETE CLOSING.
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A. This Agreement shall bepresented to the Buyer's board of commissioners within 30 days of the
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date it is submitted to Buyer, fully executed by Sellers. If the Buyer's board of commissioners
does not approve this Agreement within thirty (30) days of the date of this Agreement, this
Agreement shall be deemed automatically null and void and of no further force or effect and
Buyer and Sellers shall immediately execute a written acknowledgement that this Agreement
has been terminated in its entirety.
B. Buyer's obligation to close on the Property pursuant to this Agreement is contingent upon
Buyer executing a development agreement with Kohl's Department Stores, Inc. ("Kohl's") in a
form acceptable to Buyer by no later than July 31, 2002. If Buyer has not executed a
development agreement with Kohl's by the above date, this Agreement shall be deemed
automatically null and void and of no further force and effect and Buyer and Sellers shall
immediately execute a written acknowledgement that this Agreement has been terminated in its
entirety.
11. NO PARTNERSHIP OR JOINT VENTURE CREATED HEREBY. Nothing in this
Agreement shall be interpreted as creating a partnership or joint venture between the Sellers and
Buyer relative to the Property.
• 12. POSSESSION/CONDITION OF PROPERTY. Sellers shall deliver possession of the
Property to Buyer at Closing in the same condition as the Property existed on the date of this
Agreement.
13. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Sellers represent
that to Sellers' knowledge there are individual sewage treatment systems on or serving the
Property.
14. LABOR AND MATERIAL. Sellers warrant that there has been no labor or material
furnished to the Property for which payment has not been made. This warranty shall survive the
Closing of this transaction. Buyer warrants that before conveying the Remnant Parcel to Sellers it
shall provide lien waivers from all laborers and material suppliers associated with the Kohls project
to prevent any mechanic's lien encumbrance on the Remnant Parcel.
15. WELL DISCLOSURE. Sellers represent and advise Buyer that to Sellers' knowledge
there are wells located upon the Property.
16. SELLER'S WARRANTIES. Other than as expressly stated herein, Sellers make no
representations or warranties concerning the condition of the Property whatsoever, and Buyer
hereby accepts the Property in "AS IS" and "WHERE IS" condition. Notwithstanding the
foregoing, Sellers warrant that there has been no labor or material furnished to the Property for
which payment has not been made. This warranty shall survive the Closing of this transaction.
•
17. CUMULATIVE RIGHTS. Except as may be otherwise provided elsewhere herein, no
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right or remedy herein conferred on or reserved to Buyer or Sellers is intended to be exclusive of
•
any other right or remedy provided herein or by law,but such rights and remedies shall be
cumulative and n addition to every other right or remedy given herein or elsewhere or hereafter
existing at law inequity, or by statute.
18. BROKER COMMISSIONS. Sellers shall be solely responsible for any broker
commission due with respect to this transaction. Sellers agree to indemnify Buyer for any and all
claims for brokerage commissions or finders' fees in connection with negotiations for purchase of
the Property arising out of any alleged agreement or commitment or negotiation by Sellers.
19. REMEDIES. If Sellers defaults in any of their obligations in this Agreement, then
Buyer's sole remedy will be return of the Earnest Money and accrued interest thereon.
If Buyer defaults in any of its obligations in this Agreement, Sellers may seek specific
performance or damages entitled under law and keep all Earnest Money and accrued interest paid
hereunder.
20. NO MERGER OF REPRESENTATIONS, WARRANTIES. No representations,
warranties or other agreements contained in this Agreement shall be merged into any instruments or
conveyance delivered at Closing, and the parties shall be bound accordingly.
21. ENTIRE AGREEMENT; AMENDMENTS. This Agreement constitutes the entire •
agreement among the parties, and no other agreement prior to this Agreement or contemporaneous
herewith shall be effective except as expressly set forth or incorporated herein. Any purported
amendment shall not be effective unless it shall be set forth in writing and executed by the parties
or their respective successors or assigns.
22. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure
to the benefit of the parties and their respective heirs, executors, administrators, successors and
assigns.
23. NOTICE. Any notice, demand, request or other communication which may or shall be
given or served by the parties shall be deemed to have been given or served on the date the same is
deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
a. If to Sellers: Robert A. & Cathy L. Hoekstra
7848 Harkness Avenue South
Cottage Grove, MN 55016
Kevin P. &Julie B. Snow
7862 Harkness Avenue South
Cottage Grove, MN 55016 •
5
• Eugene M. &Joan E. Stoltz
29630 Glader Blvd
Lindstrom,MN 55045
b. If to Buyer: Cottage Grove Economic Development Authority
7516 80th Street South
Cottage Grove MN 55016-3195
Attn: Executive Director
With a copy to: Kennedy& Graven, Chartered
480 Pillsbury Center
200 South Sixth St.
Minneapolis, MN 55402
Attn: Ron Batty
24. CAPTIONS, HEADINGS OR TITLES. All captions, headings, or titles in the
paragraphs or sections of this Agreement are inserted for convenience of reference only and
shall not constitute a part of the Agreement or a limitation of the scope of the particular
paragraphs or sections to which they apply.
• 25. REFERENCE TO GENDER OR NUMBER Where appropriate, any reference to the
masculine gender may be read as referring to the feminine gender or neuter gender and vice
versa, and the singular may be read as including the plural, and vice versa.
26. COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date written
above.
SELLERS:
Robert A. & Cathy L. Hoekstra
Kevin P. &Julie B. Snow
Eugene M.
g &Joan E. Stoltz
•
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BUYER: •
COTTAGE GROVE ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its Executive Director
EXHIBIT A
The Property is legally described as follows:
[to be completed prior to execution]
F:\USERS\RSCHROED\Homeowners PA Draft 5.doc
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RESOLUTION NO.
RESOLUTION OF THE COTTAGE GROVE
ECONOMIC DEVELOPMENT AUTHORITY
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTIES
WHEREAS, the Cottage Grove Economic Development Authority (the "EDA") is an
economic development authority duly constituted and organized under law, with all of the powers
enumerated in Minnesota Statutes, Sections 469.090 through 469.1081 (the"EDA Act"); and
WHEREAS,the EDA is authorized to develop and carry out plans for the development and
redevelopment of the community under Minnesota Statutes, sections 469.124 through 469.134 (the
"City Development Districts Act"); and
WHEREAS, on January 7, 1985, the City of Cottage Grove (as predecessor in interest to
the EDA) created Development District No. 1 (the "Development District") and adopted a program
(the"Program") for it, all in conformance with the City Development Districts Act; and
WHEREAS, the Program articulates the EDA's plan to provide employment opportunities
and to improve the tax base by providing an impetus for commercial development; and
110
WHEREAS,the EDA has subsequently amended the Program,most recently on August 15,
2001 and has established Tax Increment Financing District No. 1-12 (the "TIF District") to further
the objectives of the Program; and
WHEREAS, the Program, as modified, contemplates the acquisition of certain real
properties (the "Properties") which are located in the TIF District and which are more particularly
described below in this resolution; and
WHEREAS, section 469.126, subdivision 2(a) of the City Development Districts Act
authorizes the EDA to acquire land needed to carry out the objectives of the Program through the
exercise of eminent domain; and
WHEREAS, the EDA has approved a contract for private development (the "Contract")
regarding land lying within the TIF District portion of the Project Area(including,but not limited to
the Properties); and
WHEREAS, the Developer under the Contract is not in default of any of its obligations
thereunder; and
WHEREAS, the Contract requires the EDA to acquire the Properties, demolish the
improvements on the Properties and convey the same to the Developer no later than March 1, 2003;
• and
CAH-208593v2
CT 160-91 1
WHEREAS, in order to complete the demolition and site preparation by the March 1, 2003
contract deadline, the EDA must acquire title to the Properties on or before January 15,2003; and
WHEREAS, the EDA has retained qualified independent appraisers to estimate the market
value of the Properties and immovable fixtures located on the Properties; and
WHEREAS, the EDA staff has been unsuccessful in negotiating agreements for the
purchase of the Properties.
NOW, THEREFORE, BE IT RESOLVED by the Cottage Grove Economic
Development Authority as follows:
1. It is necessary to acquire the Properties in order for the EDA to carry out the purposes of the
Program, as modified, and the Act, and to comply with its obligations under the Contract.
2. The acquisition of the Properties is in the public interest and serves a public purpose, for the
following reasons(which are not intended to be exclusive):
• The Properties are located at one of the primary entrance areas of the City, known as
the Gateway Area. The Gateway Area was one of the original commercial
development areas of the City. Development in the area dates back to the 1960's,
with some structures of more recent 1980's vintage.
• The Properties are located within a TIF District, and the EDA has previously found
that more than 50 percent of the buildings within the TIF District are structurally
substandard as defined by state law.
• The Gateway Area has experienced a general decline since the 1990's when a newer
commercial area developed at Jamaica and Highway 61.
• Redevelopment is necessary to prevent further decline of the Gateway Area.
• Redevelopment is expected to revitalize the Gateway Area and promote additional
investment in other properties in the area.
• Redevelopment is expected to increase and stabilize the tax base in the City of
Cottage Grove. Currently commercial/industrial properties comprise only seven
percent of the City's tax base, which is significantly below the percentage of
commercial/industrial development that other suburban cities experience.
• The existing infrastructure in the Gateway Area is inadequate. East Point Douglas
Drive does not meet appropriate design and safety standards, and reconstruction and
realignment of the road is necessary to correct the inadequacies. Realignment is also
necessary to meet the needs of the proposed commercial redevelopment. Storm
water improvements are needed and can be accomplished through redevelopment.
3. Acquisition of the Properties by eminent domain, in the manner provided by Minnesota
Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is hereby
authorized.
4. The EDA deems it necessary for the reasons set forth in the Program, as modified, and in •
CAH-208593v2
CT 160-91 2
• order to meet anticipated construction schedules, to proceed without undue delay to
commence condemnation of the Properties.
5. The EDA's attorney and staff are authorized to commence and prosecute to completion
eminent domain proceedings to acquire fee simple absolute title to the Properties, pursuant
to Minnesota Statutes, Section 117.042.
6. The Properties to be acquired are described on the attached Exhibit A. The EDA staff is
directed to obtain a more defmite legal description for the partial taking of Parcel 15,
consistent with the drawing attached as Exhibit C to this resolution.
7. The EDA hereby approves the appraised values of the Properties, as set forth on the attached
Exhibit B.
Adopted by the Cottage Grove Economic Development Authority this day of June,
2002.
James Wolcott,President
• ATTEST:
Ryan R. Schroeder, Executive Director
•
CAH-208593v2
CT160-91 3
EXHIBIT A •
Legal Description of Properties to be Acquired
Parcel 5:
Owners: US Bank, fka Mid America National Bank&Park Grove National Bank
PID: 08-027-21-33-0023
Legal: That part of the Southwest 1/4 of the Southwest 1/4 of Section 8, Township 27, Range 21,
Washington County, Minnesota, described as beginning at a point of the East line thereof
distant 445.50 feet North from the SE corner of said SW1/4 of the SW1/4; thence
southerly along said East line 445.50 feet to said SE corner; thence South 89° 37' West
assumed bearing along the South line of said SW1/4 of the SW1/4 270 feet; thence North
0° 23' West 300 feet; thence North 89° 37' East 122.45 feet; thence North 0° 05' 02"
East 145.50 feet more or less to the intersection with a line drawn westerly and parallel
with the South line of said SW 1/4 of the SW 1/4 from the point of beginning; thence
Easterly along said parallel line 150 feet more or less to the point of beginning; EXCEPT
commencing at the Southeast corner of said SW 1/4 of the SW 1/4; thence Westerly along
the South line of said Section 150 feet; thence North 300 feet; thence East 150 feet to the
Easterly line of said SW 1/4; thence South 300 feet to the point of beginning, Washington
County, Minnesota.
Except a parcel conveyed to the City of Cottage Grove by Document No. 428391
described as that part adjacent to and Southerly of a line described as beginning at the •
Southeast corner of said Southwest quarter of Southwest quarter; thence South 89° 37'
West, assumed bearing along the South line of said Southwest quarter of Southwest
quarter 270 feet; thence North 0° 23' West 50 feet to the point of beginning of the line to
be described; thence easterly to a point being 50 feet North of the South line and 150 feet
West of the East line of said Southwest quarter of Southwest quarter and there
terminating except for the South 33 feet of the originally described tract of land.
•
CAH-208593v2
CT 160-91 A-1
Parcel 6:
Owners: Roger Jensen, Sarah E. Ruvelson, Cottage Grove Offices, Inc.:
PID: 08-027-21-33-0029
Legal: The North 120.00 feet of the West 82.00 feet as measured at right angles to the
North and West lines of the following described parcel: that part of the SW1/4 of
the SW1/4 of Section 8 Township 27 Range 21 described as follows: beginning
at a point in the South line of said SW1/4-SW1/4 distant 684.90 feet Westerly of
the Southeast corner thereof; thence on an assumed bearing of North 89° 36' 31"
East along said South line a distance of 242.90 feet; thence NO2°44'24" West,
299.61 feet; thence South 89° 36' 31" West 220.00 feet to an intersection with a
line hearing North 01° 38' 27" East from the point of beginning; thence South 01°
38' 27" West 299.55 feet to the point of beginning, except that part of SW1/4-
S W 1/4 Section 8, Township 27 Range 21 West shown as Parcel 43G on the plat
designated as MnDOT Right of Way Plat No. 82-20 on file and of record in the
office of the County Recorder in and for Washington County, Minnesota. Also
except all right of access as shown on said plat by the access restriction symbol.
Parcel 7:
Owners: Richard A. McConnell and Laura A. McConnell
PID: 08-027-21-33-0021
Legal: All that part of the SW1/4 of SW1/4 of Section 8, Township 27, Range 21 described as
follows: commencing at the Northwest corner of the Southwest '/4 of the Southwest 1/4 of
said section; thence South along the West line of said section 8 for 2 rods; thence East for
• 8.5 chains; thence South 7° 08' East for 11.92 chains; thence South for 515 feet more or
less to a point on the South line of said Section 8; thence East to a point 35 feet East of
the Driveway into Walter Pommerening property produced which the point of beginning;
thence East 120 feet; thence North at right angles 175 feet; thence West 120 feet; thence
South 175 feet to the point of beginning, Washington County, Minnesota.
Together with an easement over adjacent property owned by the City of Cottage Grove,
as created by document no. 475163
Except the North 27 feet of the South 60 feet of the above-described parcel.
Subject to the rights of the public in 80th Street South. Together with all right of access to
80th Street South, said access being the right of ingress to and egress from said 80th Street
South; provided however that such access will not be taken until such time as alternate
access is provided to the grantors by way of Harkness Street.
•
CAH-208593v2
CT160-91 A-2
Parcel 8:
Owners: Mike &Rita McCann Ministries International, a Minnesota non-profit corporation 410
PID: 08-027-21-33-0019
Legal: That part of the Southwest '/4 of the Southwest 1/4 of Section 8, Township 27, Range 21,
Washington County, Minnesota, described as follows: Beginning at a point on the South
line of said Southwest 1/4 of Southwest 1/4 distant, 420 feet West from the Southeast corner
of said Southwest 1/4 of Southwest 1/4; thence North 89 degrees, 37 minutes East, assumed
bearing, along the South line 30 feet; thence North 0 degrees, 23 minutes West 175 feet;
thence North 89 degrees, 37 minutes East 120 feet; thence North 0 degrees, 23 minutes
West 125 feet; thence South 89 degrees, 37 minutes West 164.15 feet; thence South 3
degrees, 5 minutes and 2 seconds East 300.33 feet to the point of beginning.
ALSO: The West 164.15 feet of the following described parcel of land: that part of the
Southwest 1/4 of Southwest 1/4 of Section 8, Township 27, Range 21, Washington County,
Minnesota, described as follows: Commencing at a point on the South line of said
Southwest 1/4 of Southwest 1/4 distant 434.15 feet West from the Southeast corner thereof;
thence North 0 degrees 23 minutes West, assumed bearing, at right angles to said South line
300 feet to the actual point of beginning of the land to be hereinafter described; thence North
89 degrees, 37 minutes East 286.60 feet; thence North 0 degrees, 5 minutes 2 seconds East
25.00 feet; thence 89 degrees 37 minutes West 286.80 feet; thence South 0 degrees 23
minutes East 25 feet to the actual point of beginning, Washington County,Minnesota.
Together with an easement over the land described at document nos. 460791 and 460792.
Together with an easement over the lands described at document no. 372567.
Except the North 42 feet of the most Southerly 75 feet of the following described tract of
land: That part of the Southwest 1/4 of the Southwest 1/4 of Section 8, Township 27, Range
21, Washington County, Minnesota, described as follows: Beginning at a point on the
South line of said Southwest 1/4 of Southwest 1/4 distant, 420 feet West from the Southeast
corner of said Southwest 1/4 of Southwest 1/4; thence North 89 degrees, 37 minutes East,
assumed bearing, along the South line 30 feet; thence North 0 degrees, 23 minutes West 175
feet; thence North 89 degrees, 37 minutes East 120 feet; thence North 0 degrees, 23 minutes
West 125 feet; thence South 89 degrees, 37 minutes West 164.15 feet; thence South 3
degrees, 5 minutes and 2 seconds East 300.33 feet to the point of beginning.
Also except the North 87 feet of the most Southerly 120 feet of the following described
tract: That part of the Southwest 1/4 of the Southwest 1/4 of Section 8, Township 27, Range
21, Washington County, Minnesota, described as follows: Beginning at a point on the
South line of said Southwest 1/4 of Southwest 1/4 distant, 420 feet West from the Southeast
corner of said Southwest 1/4 of Southwest 1/4; thence North 89 degrees, 37 minutes East,
assumed bearing, along the South line 30 feet; thence North 0 degrees,23 minutes West 175
feet; thence North 89 degrees, 37 minutes East 120 feet; thence North 0 degrees, 23 minutes
West 125 feet; thence South 89 degrees, 37 minutes West 164.15 feet; thence South 3
degrees, 5 minutes and 2 seconds East 300.33 feet to the point of beginning.
Also except all rights of access to 80th Street South, said access being the right of engress to
and egress from said 80th Street Sout. •
CAH-208593v2
CT 160-91 A-3
Also except that part of the Southwest Quarter of the Southwest Quarter designated as
Parcel 43J on the plat designated as Minnesota Department of Transportation Right of Way
Plat Numbered 82-20.
Parcel 9:
Owners: Robert A. Kretchmer
PID: 08-027-21-33-0030
Legal: Unit 1, Condominium No. 39, Cottage Grove Office Condominium
Parcels 10 and 11:
Owners: William J. Keefer and Mary M. Keefer
PID: 08-027-21-33-0031 and 0035
Legal: Units 2 and 6, Condominium No. 39 Cottage Grove Office Condominium
Parcel 12:
Owners: Donald M. Wehlast; Mark W. Parker
PID: 08-027-21-33-0032
Legal: Unit 3, Condominium No. 39, Cottage Grove Office Condominium
Parcel 13:
Owners: Roger Jensen
• PID: 08-027-21-33-0033
Legal: Unit No. 4, Condominium No. 39, Cottage Grove Condominium
Parcel 14:
Owners: Marilyn Q. Starr
PID: 08-027-21-33-0034
Legal: Unit No. 5, Condominium No. 39, Cottage Grove Office Condominium
Parcel 15 [Partial taking of larger parcel]:
Owners: 1501 Partnership
PID: 08-27-21-34-0003
Legal:
That part of the following described property as depicted on the attached Exhibit C:
The East 250 feet of the West 593.91 feet of the South 330 feet of SE 1/4 of the SW 1/4
of Section 8, Township 27, Range 21, Washington County, Minnesota
•
CAH-208593v2
CT160-91 A-4
EXHBIT B
Approved Appraised Values of Properties
Parcel Appraised Value
5 9,000.00
6 70,000.00
7 215,000.00
8 235,000.00
9 Real estate 175,000.00
Fixtures 14,000.00
10 Real estate 140,000.00
Fixtures 4,430.00
11 Real estate 145,000.00
Fixtures 3,100.00
12 Real estate 185,000.00
Fixtures 7,040.00
13 130,000.00
14 Real estate 160,000.00
Fixtures 10,600.00
•
•
CAH-208593v2
CT 160-91 B-1
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AREAS
. - Total Property Areo = 54.2771 sq.ft, (1.241. acres)
• - Parcel 1 Area go 47,341± sq.ft. (1,08± acres)
- Parcel 2 Area - 2.640± sq.ft. (0,06± acres)
- Parcel 3 Area = 4,558± sq.ft. (0.10± acres)
JAN-15-2002 TUE 08: 43 AI': : 3 RV✓ & SONS INC FAX NO. 7637A663:- r, ,,
Si<M 1.Cimmi
FOR: THE CITY OF COTTAGE GROVE �, •
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— Total Property Area — 107,9071. sq.ft, (2.48± acres)
— Parcel 1 Area = 1,834± sq.ft. (0,04± acres)
— Parcel 2 Area — 20,334± sq.ft. (0.47± acres)
— Parcel 3 Area - 14,1751 sq.ft. (0.331, acres)
— Parcel '1 Area = 71,5641 soft. (1,64± acres)
Memo to: Economic Development Authority
From: Ryan R. Schroeder
Subject: Gateway/ Grove Rainbow / Home Depot
Date: June 3, 2002
At the May 14, 2002 meeting the EDA authorized an allocation from the Gateway
Streetscaping budget toward landscaping of the storm drainage pond located on
the Grove Plaza property. At that time we only had project estimates on the
fencing at $20,000 to $25,000 with the plant materials additional to that also
estimated at $20,000 to $25,000 including installation.
At the time of this writing we are still in the process of receiving bids. We will
bring the bids to the meeting. However, the board should be aware that the bids
received to date are within the budget parameters (we did not request sealed
bids in that the budget does not require that process).
Additionally, by the date of the meeting we expect to have bids in for the fence
material and labor. Assuming these bids come in as expected we would request
authorization of both portions of the landscaping project.
As far as other matters it continues to be expected that Home Depot will be
closing the real estate transaction by June 12. That is expected to be followed
by a ground breaking toward the end of the month. EBL&S, the owner of the
411/ shopping center has expressed interest in developing a "new beginning"
celebration within that same timeframe. You are probably also aware that the
Fleming/Rainbow Fuel station is open. During their grand opening weekend their
$0.99/gallon gas created lines outside the borders of the shopping center
property!
EDA Action: By motion authorize the streetscaping redevelopment budget toward
landscaping improvements in the amount of$ .
F:\USERS\RSCHROED\EDA streetscaping June.doc
S
Memo to: Economic Development Authority
From: Ryan R. Schroeder
Date: June 5, 2002
Subj.: Amendment to the Grove Rainbow Development Agreement
The EDA recently adopted a redevelopment agreement with EBL&S representing
the Grove Plaza shopping center. Subsequent to this approval it was learned
that IDS Life, the existing mortgagor, is requiring that this development
agreement be subordinated to their mortgage. This requirement is being made in
order for them to sign off on the real estate closing transaction that will allow for
redevelopment of the shopping center.
Attached is the appropriate subordination. This is a quite common demand. We
had not offered the subordination in the past and it hadn't been requested prior to
the earlier consideration. Our attorney has reviewed this language and is
recommending approval.
It should be mentioned here that given that the mortgage was entered into prior
to the development agreement it is our opinion that the development agreement
is already subordinate.
EDA Action: By motion approve the first amendment to the Grove Rainbow
development agreement regarding loan subordination. •
S
AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
THIS AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT (this
"Amendment") is attached to and made a part of that certain Contract for Private Development
dated May 22, 2002 by and between Cottage Grove Economic Development Authority, a public
body corporate and politic under the laws of Minnesota, having its principal office 7516 80th
Street South, Cottage Grove, Minnesota 55016-3195, and Grove-Rainbow, L.P., a Minnesota
limited partnership, having its principal office do EBL&S Property Management, Inc., 230
South Broad Street, Mezzanine, Philadelphia, PA 19102 (the "Contract"). To the extent of any
conflict or inconsistency between the terms and provisions of this Amendment and the terms and
provisions of the Contract, the terms and provisions of this Amendment shall govern and control
such other provisions, all of which other provisions shall, for all purposes, be deemed to have
been superceded hereby. Unless otherwise indicated in this Amendment, all capitalized terms
used in this Amendment shall have the meanings as ascribed thereto in the Contract.
1. The following is hereby added to the Contract as Section 8.2(c):
(c) IDS Life Insurance Company, a Minnesota
corporation ("Lender")made a loan (the"Loan") to
the Developer in the amount of Six Million and
00/100 Dollars ($6,000.000.00)pursuant to a
Promissory Note from the Developer to Lender
dated October 21, 1996 in said amount (the "Note").
• Lender disbursed the proceeds of the Loan pursuant
to the terms of the Note. To secure its obligations
under Note, the Developer executed and delivered
to Lender a Mortgage and Security Agreement and
Fixture Financing Statement with Assignment of
Leases and Rents dated October 21, 1996 and filed
of record on October 22, 1996 as Document
No. 907742 in the Office of the Washington County
Recorder(the "Mortgage"). In order to induce
Lender to allow Developer to take the actions
contemplated by this Agreement, the Authority is
willing to subordinate its interest in this Agreement
to the interest of Lender as set forth in this Section
8.2. The Authority hereby subordinates in all
respects to the Loan and to the interest of Lender
thereunder, and to the lien of Mortgage, any and all
rights, title or interest the Authority has, may have,
or may acquire in the Development Property and the
Minimum Improvements, notwithstanding the order
of recording or any other priority which may
otherwise exist. Notwithstanding anything to the
contrary contained in this Agreement, the
Assessment Agreement by and between the
Authority and the Developer dated
2002, and filed of record on
2002, as Document No. in the Office of
the Washington County Recorder between the
Authority and the Developer, and the rights of the
Authority and the Washington County Assessor
thereunder shall be and remain prior and superior to
Mortgage, and Lender and any other person or
entity which acquires title to the Development
Property as a result of a foreclosure sale, or deed in
lieu of foreclosure, shall take title to the
Development Property subject to the Assessment
Agreement and the terms and provisions thereunder.
2. This Amendment may not be modified or amended except by written agreement
specifically referring to this Amendment and signed by the Authority and the Developer.
3. This Amendment may be executed in several counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same document.
Except as expressly provided in this Amendment, the Contract remains the same and in
full force and effect, and the Authority and the Developer hereby ratify all of the terms and
provisions of the Contract, as hereby amended.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
date and year herein below indicated.
THE AUTHORITY:
•
COTTAGE GROVE ECONOMIC
DEVELOPMENT AUTHORITY
By:
Its President
By:
Its Executive Director
DEVELOPER:
GROVE-RAINBOW, L.P.
a Minnesota limited partnership,
By: EBL&S Holding Company, II, Inc.,
a Pennsylvania corporation,
its general partner •
By: --
Edward B. Lipkin, President
STATE OF MINNESOTA :
•
SS.
COUNTY OF WASHINGTON
The foregoing instrument was acknowledged before me this day of June, 2002, by
and , as President and Executive
Director, respectively, of the Cottage Grove Economic Development Authority, a public body
corporate and politic under the laws of Minnesota, on behalf of the Economic Development
Authority.
NOTARY PUBLIC
STATE OF PENNSYLVANIA :
:SS.
COUNTY OF PHILADELPHIA :
• The Foregoing instrument was executed this day of June, 2002, by Edward B.
Lipkin, the President of EBL&S Holding Company, II, Inc., a Pennsylvania corporation, the
sole general partner of Grove-Rainbow, L.P., a Minnesota limited partnership.
NOTARY PUBLIC
F:\60000\006\Amendment Contract Private Development.wpd
S
City of Cottage Grove
I
Memo
To: Economic Development Authority Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Project Updates
Attached is the list of active projects. The City developed four new projects since your
last meeting. These inquiries included a Metro East office/showroom project, a 30,000-
40,000 SF office/warehouse project, a biotech company, and a possible retail
redevelopment project. We continued to respond to follow-up requests for information
on other active files. Staff will provide a verbal update regarding all current active leads
at the meeting.
Attachment
•
\\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Proj Update.doc
ACTIVE LEADS QUERY EDA PACKET 6/4/02
Proposal ID Project Description SF/Acres Needed
ED-00-11 Retail/Wholesale 1-1.5 acres
ED-00-22 Office Warehouse 45,000- 50,000 sf warehouse, 4,000 -5,000 office
ED-00-31 Grove Plaza NA
ED-00-32 Hotel & Restaurant 70,000 -80,000 sf
ED-00-61 Retail/Mixed Use
ED-00-64 Manufacturing/Distribution 8-10 acres
ED-00-84 Multi-Tenant Spec. Building
ED-01-001 90,000 SF Retail 90,000
ED-01-002 Manufacturing
ED-01-005 Manufacturing
ED-01-006 Re- Development
ED-01-010 Restaurant#2
ED-01-012 Restaurant#4
ED-01-018 Commercial
ED-01-021 Remodel
ED-01-024 Commercial 6.5 acres
ED-01-026 Manufacturing -Medical 35,000 Sq. Ft.
ED-01-030 Distribution 25-30 acres
ED-01-032 Distribution 400,000 SF distribution center
ED-01-033 Industrial
ED-01-034 Distribution Center 9 acres
ED-01-035 Project Future 60- 100 acres
ED-01-036 Retail Store 2,000-3,000 SF •
ED-01-037 Multi-tenant Industrial 80,000 - 100,000 SF
ED-01-038 Commercial 40,000- 50,000 SF
ED-02-001 Manufacturing 80,000 SF
ED-02-003 Industrial 10-12 acres
ED-02-004 Office 2 acres
ED-02-006 Mixed Use Commercial
ED-02-007 Restaurant
ED-02-008 Manufacturing
ED-02-009 Steel Fabricator 20,000 SF
ED-02-010 Restaurant
ED-02-011 Restaurant
ED-02-012 Office
ED-02-013 Office
ED-02-014 Office/Storage
ED-02-015 Remodel
ED-02-016 Bank
ED-02-017 Bank
ED-02-018 Manufacturer 30 acres
ED-02-019 Office Showroom 2 acres
ED-02-020 Light Industrial 2-3 acres
ED-02-021 Retail 75,000- 100,000 sf retail
ED-02-023 Restaurant
ED-02-024 Office/Showroom 10 Acres
Page 1
ACTIVE LEADS QUERY EDA PACKET 6/4/02
Proposal ID Project Description SF/Acres Needed
ED-02-025 Office/Warehouse
ED-02-026 Biotech
•
•
Page 2
• Memo to: Economic Development Authority
From: Ryan R. Schroeder
Date: June 4, 2002
Subject: Land Use Proposal for Industrial Land
As the Board is aware we have a 792-acre industrial park of which the 256-acre
portion south of 95th Street is currently under development. Approximately 151
acres of that tract remain developable after deducts for rights of way and other
public uses. North of 95th Street is an additional 79-acre tract under the same
ownership (WAG Farms).
Within the 79-acre tract north of 95th are two different residentially zoned parcels.
The northern most parcel is 12.2 acres, zoned R-3 which would allow for 48.8
detached single family homes. The southern 6.4 acres would allow for 64
attached units or potentially up to 76.8 units if a developer were able to achieve
ordinance allowed density bonuses under an R-5 designation (see attached
map). The balance, approximately 60.4 acres, is zoned industrial. From within
the 79 acres it has been planned for many years that a portion of the property
would be set aside for construction of the central storm drainage system. This
system connects the Hamlet pond drainage area to the industrial park flume
constructed over the past three years south of 95th Street.
• The City is presently implementing the pavement management project north of
the 79-acre WAG Farms tract. As part of that project it has been determined by
Engineering that 69,000 square foot permanent and 34,000 square foot
temporary easement is required for roadway, storm water holding and stockpiling
of fill. This acquisition requirement caused a review of future land development
in that immediate area and how that development might be impacted by our
current construction project.
Coincidental to the road construction needs are a number of other items. Within
the 2002 CIP is $343,000 from storm area funds for construction of phase 3 of
the flume in this same area. Also budgeted is $37,000 for Hamlet pond dredging
and $97,000 for Hamlet pond expansion. Proposed for 2003 funding is $120,000
for paving and expansion of the Hamlet parking lot as well as $20,000 for an
industrial park planting buffer for either this area or a similar buffer south of 95th.
Additionally, as part of the Gateway development it is proposed that the City
create a commercial development parcel from an existing park property. The
proceeds from such a development are recommended to be redirected toward
either park development or park acquisition. It would be expected that such a
sale would exceed $300,000 in return.
An expected proposal to the Parks Commission, and ultimately the City Council
is that the City use the opportunities in front of it to acquire land south of Hamlet
1111
Park to complete another phase of the storm drainage system, expansion of
Hamlet Park, and development of a portion of the WAG Farms land in
accordance with it's residential designation. The ideology is that such a proposal
mitigates the taking of existing parkland, provides an expansion of facilities
deemed necessary by the CGAA, allows for the use of land presently zoned for
residential development, and provides for storm drainage improvements.
Potential objections include increased traffic in the area and utilization of existing
industrial land for a non-industrial use. Regarding traffic it would be expected
that 89th Street traffic would increase due to park expansion and that Hamlet
Avenue traffic would increase due to additional housing. However, it should be
noted that Hamlet is not a cul-de-sac, but is currently an uncompleted street.
Hence, residents should expect that that street would someday be connected to
additional development.
A concept of the development proposal is included for your review. It is
contemplated that from the 79 acres south of Hamlet Park, 11 are necessary for
storm drainage facilities and another 14 are available for active park use.
Another 12 acres is shown as a residential development parcel and the
remaining 42 acres would continue to be available for industrial use. It should be
noted that the southern 6.4 acres currently zoned as residential is converted to
storm drainage as part of this development proposal. This concept appears to
reduce the amount of developable industrial land by 7.4 acres in total (current 79
acres minus 11 for storm drainage minus 18.6 of residential zoning equals 49.4
developable at present; if this concept is approved as presented here those
change to 79 acres minus 12 residential, minus 11 storm drainage, minus 14 •
park equals 42 developable industrial acres. It perhaps could also be the case
that between the park property and the drainage facility the buffer requirement
between uses is exceeded increasing the utility of the remaining industrial land.
For the above concept to move forward a number of actions would be required.
Included would be land use approvals as well as realization of the revenues
noted above. A review bythe EDA and the Parks Commission is the first stepin
that process.
EDA Action: Provide direction to staff regarding the proposal to expand Hamlet
Park, and provision of storm water infrastructure through the industrial park.
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AN
6-5-02
City of Cottage Grove
S
Memo
To: EDA Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Proposed 2003 Economic Development Authority Budget
Staff recently completed preparation of initial 2003 budget proposals. The
budget team is scheduled to review these proposals during the week of June 10-
14. A copy of the EDA budget is attached.
The proposed EDA budget is increasing 7.65%. However, the bulk of this
increase is due to a change in how wage and benefit costs are shown. As you
know, a portion of wages for certain positions are allocated to the EDA budget.
Historically, the benefits costs for these positions have been budgeted 100% out
of either Personnel (Assistant Administrator, Secretary and Management
Analysts) or Administration (City Administrator.) Now, they will be assigning a
portion of benefits to this budget (in equal percentage to the wages.) Without this
change, the EDA budget would be within the 3% increase limit requested by
administration.
The advertising budget has been increased to allow for possibly sponsoring an
event and for anticipated general rate increases. The travel and training budget
has been increased to reflect actual expenditures in past years. Otherwise, the
budgeted amounts remain stable.
REQUESTED ACTION:
Approve the proposed 2003 Economic Development Authority budget.
Attachment
•
\\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Budget.doc
s�(e
City of Cottage Grove
Department Budget
Request
Fund 285 Pera rate 0.0553 I:\2003 Budget\Budget Detail Pages\(DET1135.: -
Department Econ Dev Authority FICA rate 0.0765 .
Program 1135 Group ins
W/C rate 0.0042
Percent
2003 Over(Under)
Detail Totals Totals With Prior year Budget
2001 2002 Before Before Budget Budget Before Budget After Budget
Object Code Description Actual Budget Budget Adds Budget Adds Additions Additions Additons Additons
Personal Services
4100 Salaries!Wages Reg Updated by Finance
Wolfe,Ass't Admin at 30%
Schroeder,City Admin at 20%
Barrett,Analyst at 27%
Johnson,Scott at 27%
Belscamper,Neil at 10%
Total Regular FT 68,100
Total 4100 55,752 64,950 68,100 68,100
4110 Overtime
Total 4110 230 100 100 100 100
4120 Salaries/Wages P/T
Total 4120 144 1,800 - -
4141 PERA 1,663 3,700 3,800 3,800 - 3,800
4142 FICA 3,903 5,100 5,200 5,200 - 5,200
4142 Insurance - - 8,200 8,200 - 8,200
4148 Workers Comp 300 300 300 300 - 300
•
Total Personal Svcs 61,992 75,950 85,700 85,700 12.84% 12.84%
Commodities
4200 Office Supplies
450
Total 4200 293 300 450 450
4210 Operating Supplies
150
Total 4210 574 300 150 150
Total Contractual Svcs 867 600 600 600 0.00% 0.00%
Contractual Services
4300 Professional Svcs
Marketing,Brochure design, 21,000
Aerial photos
Total 4300 4,027 21,000 21,000 21,000
4301 Engineering Svcs
7,500
Total 4301 451 7,500 7,500 7,500
4302 Legal service
12,000
Total 4302 8,231 12,000 12,000 12,000
4305 Fees For Service •
EDA Per Diem: 7 @$30/mtg'12 mtgs. I 2,500 I II
Page 1
City of Cottage Grove
Department Budget
Request
Fund 285 Pera rate 0.0553 I:\2003 Budget\Budget Detail Pages\[DET1135.:
Department Econ Dev Authority FICA rate 0.0765
Program 1135 Group ins
W/C rate 0.0042
Percent
2003 Over(Under)
Detail Totals Totals With Prior year Budget
2001 2002 Before Before Budget Budget Before Budget After Budget
Object Code Description Actual Budget Budget Adds Budget Adds Additions Additions Additons Additons
Misc.as needed I 3,000
Total 4305 2,734 5,900 5,500 5,500
4311 Postage
Annual Report,Golf Tournament, 2,200 Increase in postage
Mailings
Total 4311 1,678 1,800 2,200 2,200
4340 Printing
Annual Report 1,500
Marketing Brochure&Post Cards 4,000
Total 4340 6,500 5,500 5,500
4341 Advertising
City Business 12,000 Increase advertising
Minn Real Estate Journal 10,000
Chamber Misc. 500
Public Hearing Notices 300
Misc.Ads 2,500 Possibly sponsor and event
• Total 4341 24,615 21,400 25,300 25,300
4350 Insurance
700
Total 4350 300 700 700 700
4401 Dues&Subscriptions
Metro East Development 2,600
City Business Sub. 100
MAEDC
AEDC
Chamber 1,550
EDAM(CA&ACA @175 ea.) 350
misc 150
Total 4401 4,500 4,700 4,750 4,750
4403 Travel/Training
Ass't National Conference(1500'25%) 400
Ass't,State Conference(500'25%) 150
TIF Seminar 200
Mileage Reimbursement 300
Local Meetings/Seminars 500
Analyst Seminar 500
2,195 1,600 2,050 2,050
4434 Special Events
• Golf Tournament Expenses 4,700
Misc.Plaques,Etc. 100
Formus for Locl Business 500
Page 2
City of Cottage Grove
Department Budget
Request
Fund 285 Pera rate 0.0553 I:\2003 Budget\Budget Detail Pages\[DET113
Department Econ Dev Authority FICA rate 0.0765
Program 1135 Group ins
W/C rate 0.0042
Percent
2003 Over(Under)
Detail Totals Totals With Prior year Budget
2001 2002 Before Before Budget Budget Before Budget After Budget
Object Code Description Actual Budget Budget Adds Budget Adds Additions Additions Additons Additons
Total 4434 13,386 5,300 5,300 5,300
4445 Sales Tax 450 500 500 I 500 ( 500 I
Total Contractual Svcs 62,567 88,900 92,300 92,300 3.82% 3.82%
Captial Outlay
4520 Furniture and Office Equipment
Total 4520 - - -
Total Capital Outlay - - - - #DIV/0! #DIV/0!
Other Financing Uses:
4700 Transfers
Total 4700 1,600 - - -
Total Other Financing 1,600 - - - #DIV/0! #DIV/0!
Total Department 127,026 165,450 178,600 178,600 7.95% 7.95.
•
Page 3
City of Cottage Grove
•
Memo
To: EDA Members
From: Scott Johnson
Date: 6/7/02
Re: May 29th Senior Housing Meeting
The Senior Housing Task Force met on Wednesday, May 29th to meet with
prospective developers for senior housing projects. The task force is made up of
members of the Planning Commission, EDA and Human Services Commission.
The task force listened to proposals from four senior housing developers.
• Matt Crellin of Accessible Space who would team up with the Wilder Foundation
on this project did the first senior housing developer presentation. They would
use a HUD 202 grant and other grant sources to come up with the funding for
this project. The project would be a subsidized senior housing project of about
50 units on approximately 3 acres of land.
Doug Mayo of CommonBond was the next person to present on senior housing.
He thought there were three possibilities for senior housing projects in Cottage
Grove. First, CommonBond could build a mixed income (75-100 unit) senior
housing development. Twenty percent of the housing would be affordable and
eighty percent would be market rate. Second, he proposed a 50 unit affordable
building (50% of median income) under the HUD 202 program. Finally, he
proposed a senior housing campus. The campus would be mixed-income. The
City would need to use AAA bonds to finance the FHA project.
Next, the task force welcomed Presbyterian Homes. They proposed a 110-unit
senior housing complex mixed with commercial and retail space. The project
would need TIF financing. The senior housing would include independent and
assisted living units.
The final presentation of the evening was from John Duffy of Duffy Development.
He proposed building market rate senior town homes. He thought a 90-unit
development could work well on a number of sites in Cottage Grove.
• The task force was pleased with the four presentations. The task force thought all
four could fill senior housing niches in the community.
F:\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Senior Housing.doc
City of Cottage Grove
•
Memo
To: EDA Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Marketing: New postcard
A copy of the most recent EDA postcard is enclosed in your packet. We
anticipate mailing the postcard to our full mailing list the week of June 10.
ID Enclosure
•
F:\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 postcard.doc
City of Cottage Grove
•
Memo
To: EDA Members
,,,9/,
From: Scott Johnson
Date: 6/4/02
Re: EDA Golf Outing
As of this date, the EDA has received 73 RSVP's (not including staff, Council, or
EDA members) for the August 20th Golf Outing at River Oaks Golf Course.
Fourteen businesses have also agreed to sponsor this year's event. I have
included a list of the sponsors and businesses that have RSVP'd for the event.
•
•
Document2
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City of Cottage Grove
S
Memo
To: EDA Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Economic Development: 2001 Accomplishments
Attached is a copy of the Economic Development 2001 Accomplishments. This
was prepared as part of a citywide goals and accomplishments document. As
you can see, the 2001 accomplishments as well as 2002 goals and objectives
are outlined in this document. The goals section is based on the EDA Strategic
• Plan.
Attachment
ID
F:\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Accomplishments.doc
City of Cottage Grove • 7516 80th Street South •Cottage Grove, Minnesota 55016
Economic Development
2001 Accomplishments
2001 Accomplishments. In 2001 Economic Development staff achieved the
following accomplishments:
1. Responded to thirty eight (38) inquiries relating to the availability of
development opportunities. This compares to 84 leads in 2000, although the
City ended up with three projects (which is higher than any previous year).
The year 2001 marked the first year that we really closely tracked legitimate
leads versus every cold call and e-mail we get, including projects that would
simply not be a permitted use in Cottage Grove. As a result, it is felt that all
38 leads tracked in 2001 were strong leads, and therefore a more accurate
measure of business activity.
2. Coordinated projects in the Industrial Park, including Advance Corporation,
Tradehome Shoe Stores and American AGCO, and worked with Community
Development on commercial projects such as the Country Inn Suites Hotel,
Grove Plaza Redevelopment, Walgreen's/Semper Redevelopment project, •
and the 80th Street Redevelopment Project. Worked at Council's direction to
create the 365-acre Gateway Redevelopment District, which includes the
newly created TIF District 1-12 within its borders.
3. Held the 7th Annual EDA Golf Tournament, with record attendance of over
100 players and guests.
4. Updated our marketing folders to ensure the information is up-to-date, and
the format of all the documents is consistent.
5. Began drafting the 2002 Strategic Plan Update.
6. Continued the successful, recognizable ED marketing campaign and
completed a second photo shoot for upcoming direct mail and advertising
campaigns. Coordinated with Community Development in order to include
some possible housing-development marketing.
7. Updated our financial approach for new projects, based on the major changes
to Minnesota property tax structure.
I. D. E. S
Personal Service ... Responsiveness ... Innovation ... Dedication ... Effectiveness
City of Cottage Grove •7516 80th Street South • Cottage Grove, Minnesota 55016
• 8. Continued production of the "Your Development Partner" TV Show.
9. Held the annual EDA Golf Tournament, with a new attendance record.
Increased the visibility of tournament sponsors by including the names and
logos of sponsors on all mailings as well as in the ED Annual Report.
10.Planned and organized the annual.Business Recognition Breakfast at 3M
along with the Chamber of Commerce and 3M Cottage Grove.
11.Completed several new marketing pieces, to be included in the marketing
packets. These include: Economic Development Team Biographies
brochure, Development Update, and "Our Future, Your Future."
12.Continued to add to our Economic Development database, which now
includes over 1800 names.
13.Updated the Economic Development WEB Page and Community Profile.
14.Worked with engineering staff on storm water drainage plans and site grading
plans.
II)
15.Created TIF District 1-11 and 1-12.
16.Increased the number of press releases and saw an increased presence in a
number of publications.
17.Coordinated three groundbreaking ceremonies that were taped for inclusion
on the economic development TV show.
18.Hosted Metro East Development Connections event and a number of other
special events and tours.
19.Updated the goals designated in the 2000 —2005 Strategic Plan and added
additional objectives for the 2000 — 2005 update. These include:
• Industrial Park: Attract at least three new businesses per year.
• Redevelop Grove Plaza by the end of 2002.
• Secure at least two new restaurants (sit-down, eat-in) by the end of 2002.
• Evaluate the need for additional hotel/motel facilities.
• Develop EDA master plan for the Langdon Redevelopment area.
D, E.
Personal Service ... Responsiveness ... innovation ... Dedication ... Effectiveness
City of Cottage Grove • 7516 80th Street South •Cottage Grove, Minnesota 55016
• Provide for redevelopment or rehabilitation opportunities for the 13.2-acre •
Cottage Square Shopping Center.
• Develop a Corporate Campus Concept within the Industrial Park.
• Develop a master plan for single-family residence $350,000+ for each section
of town; a different (one) section will be completed each year.
• Develop an EDA Master Plan for the Industrial Park north of 95th Street.
• Provide an analysis/plan for buffering/mitigation between industrial uses
within the Industrial Park and residential uses to the west of the park.
• Propose a redevelopment/reuse strategy for reclaimed salvage or any
brownfield sites within the community. The EDA estimates that 99% of
development opportunities are in greenfield areas, but to be responsible, want
to address any brownfield sites that may exist. Sites for review would include
nonconforming transitional uses, not including active manufacturing locations.
• Complete site selection process for a transit station and support Minneapolis
express bus service funding and approval.
• Develop Gateway/storm holding project for area north of 80th Street, west of
highway 61. Development should be pursued if funding becomes available.
• Develop EDA master plan for the Keats/Highway 61 intersection.
• Develop EDA master plan for the 792-acre Industrial Park.
• Update Marketing Plan
2002 Goals and Objectives. Our 2002 Goals and Objectives in the area of •
Economic Development include the following:
Attract at least three new businesses per year to the Industrial Park.
Secure at least two new restaurants.
Complete a master plan for redevelopment (including Cottage Grove
Plaza, G-Will Plaza) by the end of 2002.
Complete a master plan for the Gateway Redevelopment District by
the end of 2002.
Work with Community Development on developing a master plan for
single-family residences - $350K+ -for each section of town; a different
(one) section will be completed each year.
Develop an annual Marketing Plan to heighten awareness of Cottage
Grove in the development community.
I. D. E. ID
Personal Service ... Responsiveness ... Innovation ... Dedication ... Effectiveness
City of Cottage Grove •7516 80th Street South •Cottage Grove, Minnesota 55016
• Provide ongoing support to the Economic Development Authority by
coordinating meetings and events in 2002.
Continue to work with Industrial Park owners in developing and
promoting the Cottage Grove Industrial Park.
Maintain the City's Economic Development WEB Page.
Implement business retention and expansion program.
Monitor changes in legislation regarding Economic Development tools
and other areas that impact the City's ability to attract and retain jobs
and tax base.
Review of existing TIF Districts from a financial perspective. Examine
whether it is prudent to retire any districts as new projects are
developed.
Pursue outside funding sources for marketing the industrial park.
Conduct cost/benefits analysis of the ED marketing plan.
• Look for target-marketing opportunities, including women in business.
I. EX E.
Personal Service ... Responsiveness ... Innovation ... Dedication ... Effectiveness
City of Cottage Grove
•
Memo
To: EDA Members
From: Scott Johnson
Date: 6/7/02
Re: For Sale/For Lease List
Attached is a list of the commercial, retail, and industrial land that is for sale or
lease in Cottage Grove. The city tries to update the list every six months to help
prospective business owners find space in Cottage Grove. Please review the
lists and contact me at 458-2833 with any changes or additions.
•
•
Document4
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•
Memo
To: Economic Development Authority Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Park—and — Ride/Transit Update
Enclosed in your packet is information about the new express bus service to
Minneapolis, scheduled to begin June 10. City Council, city staff, and residents are
extremely excited about this new service. The timing is excellent given the Highway 61
• construction.
Work progresses on the park-and-ride facility. A project schedule and preliminary
layout are attached for your information.
Attachments
•
\\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Transit.doc
Project Schedule •
SP 8205-106 Cottage Grove Park and Ride
June 3rd Preliminary Layout provided by E&K
Enviroscience begins Final Design
June 7th Staff Approved Layout
June 13th Monthly meeting w/ City, County, MT, MnDOT, E&K, and Enviroscience
10:00am at Cottage Grove City Hall
June 19th City Council Meeting
(City staff to present layout)
July 1st Final Project Memorandum
July 22nd 30% Completed Plan provided by Enviroscience
July 24th Monthly meeting w/ City, County, MT, MnDOT, E&K, and Enviroscience
10:00am at Cottage Grove City Hall
August 7th City Council Meeting
August 15th 90% Completed Plan provided by Enviroscience •
August 28th Monthly meeting w/ City, County, MT, MnDOT, E&K, and Enviroscience
10:00am at Cottage Grove City Hall
August 29th MnDOT return comments to Enviroscience
September 16th Enviroscience 100% plan submittal to MnDOT
September 18th City Council Meeting
Approval to advertise and approval of Cooperative Construction Agmt
October 25th City Letting
November 6th City Council Meeting
Award Contract
•
Last Updated: 6/5/2002
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City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle Wolfe, Assistant City Administrator
Date: 06/07/02
Re: Calendar of Upcoming Events
EDA Meeting June 11
Chamber Golf Tournament June 17
• EDAM Conference June 26-28
EDA Meeting July 9
Metro East Golf Tournament August 12
EDA Meeting August 13
2002 Golf Tournament August 20
•
\\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\June 02 Calendar.doc