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HomeMy WebLinkAbout2002.04.09 MINUTES CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES April 9, 2002 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 9th day of April, 2002. CALL TO ORDER President Jim Wolcott called the meeting to order at 7:30 AM. ROLL CALL • Members Present: Glen Kleven, Fred Luden, Dick Pederson, Sandy Shiely, Jim Wolcott, and Gerard Weingartner. Members Absent: Others Present: Council Member Pat Rice Council Member Rod Hale Ryan Schroeder, City Administrator Michelle Wolfe,Assistant City Administrator Scott Johnson, Management Analyst. APPROVAL OF MINUTES Jim Wolcott moved to approve the March 12, 2002 Economic Development Authority minutes. Gerard Weingartner seconded the motion and the motion carried unanimously. Project Updates Tradehome Shoes —Grand opening celebration anticipated this spring. Grove Plaza — Demolition work for the Burger King building will begin Wednesday. Construction work on the pond began Monday. Country Inn and Suites— Hotel is looking at a mid-June opening. • r F Economic Development Authority- Minutes April 9, 2002 • Page 2 Walgreens—Work continues on the store and sign. ED-01-002 — The Company's plans to move have been put on hold because of the current economy. Cottage Square —A task force of commission members and Council Members will review the senior housing RFP's that were submitted for this site. Restaurant#2—Still interested in a Cottage Grove location. Restaurant#4— Still interested in a Cottage Grove location. UpNorth — Should receive the building permit for the new addition on April 10th. American AGCO—A spring grand opening is anticipated Project Future— Cottage Grove is still considered a contender for this project. ED-02-008—The staff will talk to the company about the status of this project this week. ED-02-013—Company is looking at putting a multi-tenant project in the Industrial Park. • ED-02-014 —Warehouse project that has outside storage 2002 Council Goals Mayor Shiely discussed the City Council goals with the EDA. She informed the EDA that the Council will have five major goals for 2002. They include: 1. Commercial and Industrial development in the city's Industrial Park. 2. Supporting the development of commuter rail, more express bus trips from Cottage Grove to St. Paul, and an express bus from Cottage Grove to Minneapolis. 3. Providing more diverse housing options and bringing senior housing to the city. 4. Public Facilities — setting up a fund to help with maintaining city structures and providing access to the Mississippi River. 5. Developing a 10 to 20 year operations plan to reduce the city's debt to revenue ratio. City staff is confident one sit down restaurant will locate to Cottage Grove within the year. Staff also noted that the EDA Strategic Plan, which was approved by Council, would work in conjunction with the Council Goals. A letter was sent to the Mayor and staff by MNDOT informing the city about the Met Council's plan to possibly stop the express bus service from Cottage Grove to St. Paul. Dick Pederson made a motion for the Council and EDA to send a letter in support of continuing the express bus service from Cottage Grove to St. Paul. Mike Wennen ID seconded the motion and the motion carried unanimously. • Economic Development Authority- Minutes April 9, 2002 Page 3 Ryan Schroeder informed the EDA that the first portion of the Wakota Bridge project has come in under budget and construction on the first portion will begin in May. The City has also posted a $1,000 reward for information leading to the apprehension of suspects who vandalized Hamlet and Kingston Parks. EDA Bylaws— Roles and Responsibilities Council approved three out of the four changes discussed previously. Rod Hale said the EDA should be an extension of the Council. There is a tremendous fiscal responsibility to the taxpayers with the EDA President position. Mr. Hale thinks this adds integrity to both parties and it improves the communication between both parties. Gerry Weingartner thought by not having the requirement there would be more flexibility. The communication structure would be the same with or without a Council member as EDA President. Mike Wennen agreed that the requirement would not necessarily affect communication between the Council and EDA. Fred Luden commented that this subject has never been a problem for the EDA. The real issue is the process and not the communication. Dick Pederson thinks the system has worked well in its present form and sees no need to change the system. Mr. Schroeder explained that Economic Development is about relationshipbuilding. His first two calls on economic development P P 9 projects are usually to the Mayor and EDA President. Staff needs to have the approval • of both bodies before a project can move forward. Jim Wolcott made a motion to have the EDA approve the changes to the By-laws. Glen Kleven seconded the motion and the motion carried. Adoption of the Amended Development Agreement with Grove-Rainbow and Home Depot Council Member Rod Hale and Mayor Sandy Shiely expressed concern over the lack of a commitment to remodel the remaining tenant space at the mall. Ryan Schroeder explained that it is a give and take process. A defined date for the remodeling of the space could cost the company money or create a default on the project. The Home Depot project will begin in the near future, it is only the timing on the small tenant space that is uncertain. However, there are other incentives that include; 1) must comply with job creation and retail space 2) Taxes increase automatically — goes into place whether or not it is rehabbed under the minimum assessment agreement and it would not be a good deal for the lender if they do not rehabilitate the space 3) CGTAP — obligation to make payments to this program under the agreement and they have already authorized the architectural design for the small tenant space. Rod Hale and Dick Pederson expressed some concern about the prior relationship with the current mall owners. Jim Wolcott explained that the project is needed to improve the city's aging mall and to enhance the gateway district. Senior Housing The Council has directed staff to put together a senior housing task force. The task force • will include members from the City Council, Human Services/Rights Commission, EDA, and Planning Commission. Gerry and Glen were appointed from the EDA for the task force. r R Economic Development Authority - Minutes • April 9, 2002 Page 4 Streetscaping and Signs The City will be expanding the streetlights used on 80`h St. from Pt. Douglas and 80`h to Super America. The same style of lights will also be used along the sidewalks and in the parking lot. Staff is also proposing the same style of sign in front of Hollywood Video as Walgreens is currently constructing. The new pond by the old Burger King site will include a keystone wall and a walking path. Mayor Shiely asked if the pond could hold a water fountain and/or hold water. Staff will look into this issue. There was also some concern about the strip center being named the Gateway Center because of exclusivity issues. The EDA and Council thought it would be a good idea to maintain the Gateway name for the City. South Washington College Center This project is moving forward at Cottage Square. There has been little luck receiving input from small businesses on training preferences. The School District will use the facilities during the day for post-secondary classes and general education classes will be held at night. Inver Hills Community College has reported that a large section of the student body lives in Cottage Grove. Kohls Project • The City should receive another offer from the broker who represents the three property owners for the proposed site. Signs will be going up in the near future to sell the property as "commercial." There is a large monetary gap for the project. Kohls is not currently interested in other sites in Cottage Grove. ADJOURN EDA President Jim Wolcott adjourned the meeting at 9:30 AM. Respectfully submitted, j/ X6 / Scott Johnson Management Analyst •