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HomeMy WebLinkAbout2002.05.14 MINUTES CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES May 14, 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 14th day of May 2002. CALL TO ORDER President Jim Wolcott called the meeting to order at 7:30 AM. ROLL CALL • Members Present: Glen Kleven, Dick Pederson, Sandy Shiely, Jim Wolcott, Mike Wennen, and Gerard Weingartner. Members Absent: Fred Luden Others Present: Ryan Schroeder, City Administrator Michelle Wolfe, Assistant City Administrator Ron Hedberg, Finance Director John Burbank, City Planner Scott Johnson, Management Analyst. APPROVAL OF MINUTES Jim Wolcott moved to approve the April 9, 2002 Economic Development Authority minutes. Mike Wennen seconded the motion and the motion carried unanimously. Public Business Subsidies An open meeting for public business subsidies was held for the Grove Plaza/Rainbow site. The public hearing was posted and noticed. The subsidy would be less than $900,000 on a present value basis for the Grove Plaza/ Rainbow redevelopment. $500,000 would be funded under "pay-as you-go" Tax Increment Financing for the facade of the new small tenant space. This will amount to an estimated$50,000 per year over a projected ten-year period without an interest burden. They are eligible for up to • 90% of the tax increment generated by this project on an annual basis. The amount will Economic Development Authority- Minutes • May 14, 2002 Page 2 also include the on-site regional storm water pond. This subsidy is consistent with the criteria adopted by the EDA in the 1999 resolution and the development agreement as approved last meeting. The development also includes paying off the CG TAP program. The assessed tax value for this property will increase with or without the improvements. Dick Pederson moved to approve the public business subsidy. Mike Wennen seconded the motion and the motion carried. EDA ads Michelle Wolfe gave the EDA copies of the most recent EDA ads. The ads were run in the Minnesota Real Estate Journal and CityBusiness. The EDA also received a copy of the most recent EDA post card. Project Updates Banks — Two banks have expressed interest in Cottage Grove (one is looking at relocating within CG) Keeywadin Projects — 1) 30 acre manufacturing project 2) 2-3 acre light industrial project Retail—Ryan and Michelle met with a broker for a retail store. • Hotel— Project is on schedule Walgreens— Project remains on schedule Gateway redevelopment The Kohl's project was stalled because of property prices. There will be some changes to the original agreement with Kohls. Dick Pederson commented on how a project like this would be a plus for the community and it would provide other tag along development. Glen Kleven asked about the current status of the EDA trust fund. Ryan Schroeder said that this project would not deplete the trust fund. All of the street scaping for this project will be paid out of the increment generated from the TIF district and not the trust fund. Any extra increment from this project will reimburse the Trust Fund expense. Jim Wolcott commented on how this project makes financial sense for the City of Cottage Grove. Dick Pederson made a motion to buy the property contingent on the Kohls project. Gerry Weingartner seconded the motion and the motion carried unanimously. The City needs to remove some outdated 2001 tax language and some contingency language before moving ahead with this agreement. Grove Plaza Pond John Burbank discussed the landscaping for the new holding pond in the Grove Plaza parking lot. The landscape will follow the same theme as the current 80th Street landscaping. The City wants to make the pond the focal point of the redevelopment area. Mr. Burbank proposes that the project use decorative wrought iron fence that is offset in 16 foot sections around the pond. The pond will have a typically low normal • water level. The project will only require plantings to survive 2-6 days under water. The goal is to add color and wildlife to the pond. The landscape proposal will also match the Economic Development Authority- Minutes May 14, 2002 Page 3 landscape of the new Rainbow fueling station. Mr. Burbank also wants to grow hanging plants over the retaining walls and continue the rose theme from other City landscape projects. The proposal would also include different fence heights for the fence sections. There would be four foot center sections, six foot sections by the steps, and eight foot sections in the corners. The fencing is estimated to cost between $17,000 and $20,000. Mayor Shiely liked the idea of tying both sides of 80th Street together with this project. The Mayor would like to see more benches included in the project. The City could possibly use the benches donated by the Lions Club. Mayor Shiely is concerned about the lack of litter control language in the agreement with EBL&S. Jim Wolcott shared the same concern and would like to see language added to the agreement on litter clean-up for the pond. Mr. Wolcott would also like to see if a garden club could take on the yearly planting duties for this project because they do such a great job throughout the City. Home Depot is doing similar landscaping near their new store. Ryan Schroeder commented that 36 or 39-inch wrought iron fence might be more aesthetically pleasing for this project. To save money, the proposal could just include plantings at the corners of the fencing. Mayor Shiely liked the idea of planting all around the pond and using a straight fence instead of staggered fence to save on the cost of the project. The Mayor would also like to see banners on all of the street lights included in this project. A fountain could be added after the City sees how much water the pond will hold. This project will be discussed under Council comments. Council has already approved the • budget for this project as part of the streetscaping budget. Policy Direction for Land Acquisition Ryan Schroeder asked the EDA members what circumstances needed to exist for staff to acquire land on behalf of the EDA. Dick Pederson commented that it makes little sense to tie up EDA money in sites for long periods of time. Mike Wennen said the property needs to be purchased with a game plan in mind. Gerry Weingartner wants the EDA to look at areas and where they would be interested in buying property. Jim Wolcott mentioned buying an option to the property and holding a special meeting to discuss the property. Glen Kleven mentioned that businesses would want free land from the EDA for their projects. Dick Pederson said staff should notify the EDA and hold a special meeting if new property of interest becomes available or the City Administrator could make a contingent offer. EDA Terms The EDA needs to prepare for three terms to expire at the end of 2002. Staff would like members to think about possible members for openings. Transportation and Transit The EDA would like the staff to draft a letter thanking Representative Sharon Marko for her help with the current road and transit projects. A Hinton/Tower project schedule was • included in packet materials. The Wakota Bridge ground breaking will take place on June 10th Economic Development Authority- Minutes May 14, 2002 Page 4 River Oaks Ryan Schroeder discussed the River Oaks web page and operating information. The course revenues continued to climb, but the course ran a net operating deficit for 2001. The Golf Course has started well in 2002. Revenue was up 13% for the first quarter 2002 compared to 2001. The banquet service is beginning to take off and has had a large number of reservations for 2002. The citizens do not subsidize the golf course. Further, the course has a large cash balance from prior years. 3M 3M will be celebrating their 100th Anniversary this year. EDA Work plan Staff has proposed a three-year work plan addressing the goals within the EDA Strategic Plan. Dick Pederson made a motion to approve. The motion was seconded by Mike Wennen and passed unanimously. EDA Golf Outing • The EDA golf outing currently has 50 golfers and 13 sponsors. Staff is currently working on putting together a golf outing for women in business. This event is proposed for September. Senior Housing The senior housing task force will be meeting Wednesday, May 29' from 4 — 9 PM at City Hall. Metro East Conference Michelle Wolfe attended the conference and strongly recommended that the EDA do a sponsorship at next year's event. Over 250 people attended this year's event. ADJOURN EDA President Jim Wolcott adjourned the meeting at 9:25 AM. Respectfully submitted, / /: //,,09 Scott Johnson Management Analyst •