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HomeMy WebLinkAbout2002.06.11 MINUTES CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES JUNE 11, 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 11th day of June 2002. CALL TO ORDER The meeting was called to order at 7:30 a.m by EDA President Jim Wolcott. ROLL CALL • Members Present: Jim Wolcott, President Sandy Shiely, Vice-President Glen Kieven, Authority Member Fred Luden, AuthorityMember Dick Pederson, Authority Member Gerard Weingartner, Authority Member Mike Wennen, Authority Member Members Absent: None Others Present: Ryan Schroeder, City Administrator Michelle Wolfe, Assistant City Administrator Ron Hedberg, Finance Director Neil Belscamper, Recording Secretary Mathias Baden, South Washington County Bulletin APPROVAL OF MINUTES EDA Vice-President Shiely moved to approve the May 14, 2002 Economic Development Authority Minutes. Authority Member Pederson seconded. Motion carried unanimously. GATEWAY REDEVELOPMENT DISTRICT Purchase Agreement for Gateway Development Residential Properties City Administrator Schroeder said several items had to be addressed concerning the Gateway • Development Project. First, he asked that authority members authorize execution of purchase agreements for residential property needed for the Kohl's project. Authority Member Kieven L Economic Development Authority- Minutes III June 11, 2002 Page 2 moved to authorize execution of the purchase agreements. Authority Member Pederson seconded. Motion carried unanimously. Eminent Domain Resolution for Commercial Properties City Administrator Schroeder explained that he had met with commercial property owners and that the City was making some progress toward acquisition of the properties for the Kohl's project. The properties would have to be acquired by September. He stated that the options regarding eminent domain were to either begin the process now, or table the resolution until it becomes clearer whether proceedings would need to take place. EDA President Wolcott asked how the negotiations were going. Schroeder replied that they had been going well, and that conversations with the property owners had been cordial. He added that there was still some distance between parties concerning property values, but that the owners were interested in negotiating. Authority Member Pederson moved to approve the resolution initiating eminent domain proceedings. EDA Vice-President Shiely seconded. Authority Member Kleven asked whether this motion would actually initiate the process, or whether it would be going to Council as a recommendation. Schroeder clarified that it would be going to Council. Authority Member Luden asked whether the item would be brought back to the EDA for discussion if the sale price of the land would be substantially larger than IDanticipated. Schroeder said he would keep everyone informed. He noted that some of the property owners were interested in relocation. Motion carried unanimously. Grading and/or Development of Hardwood/Harkness ROW City Administrator Schroeder displayed an aerial photograph of the Kohl's development site, and said that there had been some discussion on locating building pads in the area of Oakwood Park that would need to be graded for the roadway project, noting that the Parks Commission had voted 4-0 to recommend approval of the plan. He said that the proceeds from the land sale could be used to purchase additional park land at another location, and that a likely outcome could be a net increase in park land as a result of the transaction. EDA Vice- President Shiely commented that she liked the concept. She asked whether it would affect the disk golf course in Oakwood Park. A couple of the disk golf holes and possibly the playground equipment might need to be relocated, City Administrator Schroeder responded, but accommodations would be made. EDA President Wolcott asked whether there was an ordinance regulating the sale of parkland by the City. Schroeder stated that he was not aware of one. Wolcott asked if this would be part of the Gateway Project. Schroeder said it would, but that the restaurant pads would not be part of the TIF District. Authority Member Pederson moved to make a recommendation to Council that the parkland in question be redeveloped with the Gateway Project, and that proceeds from the land sale be reinvested in parkland elsewhere in the City. Authority Member Weingartner seconded. Motion carried unanimously. 111 • Economic Development Authority- Minutes June 11, 2002 Page 3 Grove Plaza Pond Landscaping City Administrator Schroeder stated that the EDA and City Council had previously authorized landscaping improvements for under$25,000. Three bids had been received for the project, with Bailey and Daly offering the low bid on the contract at $17,403. Schroeder said the pond had been designed for a 10-year storm event and to address water-quality issues, and that the aesthetics were now being addressed. EDA Vice-President Shiely asked whether a liner could be added so the pond would retain more water. Schroeder replied that that would be very expensive. Authority Member Kleven commented that the pond cannot be seen from the street, and that he has not heard any complaints about it. He added that he thought it w uld look fine once the landscaping was in place, and he liked the idea of using a solid fence around the site. Schroeder said the aesthetics of the staggered fence design appealed to him, and Shiely said that design was also to her liking. Authority Member Pederson asked whether the bidders were local. Schroeder replied that one was from Inver Grove Heights, one from Newport, and one from Cottage Grove. Kleven asked who was ultimately responsible for approval of the project. Schroeder • responded that the City Council would make the final derision, but would most likely follow the EDA's recommendation. Kleven expressed concern that annuals were included in the landscaping plan, and that they would need a lot of maintenance. He also commented on the possibility that the property owners might use the pond to dump snow. Schroeder stated that the property owner would be made aware that the pond could not be used to dump snow, and that the landscaping would have to be maintained. Authority Member Kleven asked what action was needed from the EDA on this item. Schroeder replied that a motion to accept the bid was needed,and that it would be forwarded on to Council for final approval. Kleven moved to accept the bid from Bailey & Daly. Weingartner seconded. Motion carried unanimously. PROJECT UPDATES Assistant City Administrator Wolfe stated that there had been four new project inquiries since the last meeting, noting that one of them was for an office/warehouse project similar to Tradehome, which would need to be put on a fast-track process, as their present lease is running out. There was no new information on any of the other projects. AMENDED REDEVELOPMENT AGREEMENT City Administrator Schroeder explained that this item was needed to amend the development • agreement with Kohl's through the EDA and City Council. Three items of significance would t Economic Development Authority- Minutes June 11, 2002 ID Page 4 be amended through the new agreement, including: purchase price—$1.1 million to $1.6 million; market value-4.5 million to 5.6 million; deliveryof land—by March 1, 2003. Schroeder stated that the agreement had been drafted by our attorneys. Kleven moved to approve the amended development agreement. Shiely seconded. Motion carried unanimously. HAMLET PARK EXPANSION APPROVAL City Administrator Schroeder stated that WAG farms currently owns land being considered for the park expansion and other uses, which is 49 acres of industrial-zoned property. A couple acres of this land is needed for the Thompson Grove Pavement Management Project. This would allow the expansion of Hamlet Park, enhancements to the industrial park flume, and would allow the owner to develop residential property. A result would be a better buffer between the industrial park and residential development. The Parks Commission had recently expressed agreement with the concept. Seven or eight acres of industrial-developable land would be lost in the transaction. Schroeder said he was looking for direction from the EDA. EDA Vice-President Shiely felt that the concept was a good creative solution to address several concerns. EDA President Wolcott said he would not be opposed to the concept. • Schroeder remarked that he liked the parking layout for the park, with a large single lot rather than smaller separate lots. Shiely asked how many ball fields were currently at the park. Schroeder replied that there was a large football field, two smaller soccer fields, four ball fields, and one small t-ball field. Under the proposal there would be approximately eight ball fields and the football field would be moved. Schroeder said he was looking for approval of the general concept. Authority Member Kleven moved to approve the Hamlet Park Expansion concept. Authority Member Wennen seconded. Motion carried unanimously. 2003 BUDGET Assistant City Administrator Wolfe said that the budget reflected more than a 3% increase because employee benefit costs were now being split out to departments rather than charged only to an employee's home department. Advertising and Travel/Training budgets showed a slight increase. Authority Member Kleven asked why there was a $1,000 decrease in the printing budget. Wolfe said it was a reflection of actual costs, and that our printing needs had been reduced because of the annual report's new format. Authority Member Weingartner moved to approve the 2003 EDA budget. Authority Member Wennen seconded. Motion carried unanimously. SENIOR HOUSING Authority members Weingartner and Kleven represented the EDA at a city senior housing meeting in May. Authority Member Kleven commented that one of the four proposals • received looked very good. Authority Member Weingartner agreed, and said that the Economic Development Authority- Minutes June 11, 2002 Page 5 presenter had done a thorough job. EDA Vice-President Shiely asked if this proposal was for a mixed development. Kleven replied that it was, with some commercial. He added that he was impressed with the work the Human Services Commission has done on the project. Shiely remarked that a mix of uses is desirable for this project. MARKETING—NEW POSTCARD This was an informational item included in the packet to present the latest economic development advertising postcard. EDA GOLF TOURNAMENT This was an informational item. To date, eighty-eight RSVP's had been received and 17 sponsors had signed up. ECONOMIC DEVELOPMENT ACCOMPLISHMENTS EDA Vice-President Shiely said she appreciated that the active list of proposals for economic development had been narroved down to the more serious ones only. FOR SALE/LEASE This was an informational item included in theP acket, and contained the list of available space that is used to direct inquiries. PARK AND RIDE This was an informational item. Assistant City Administrator said the Express Service to Minneapolis has begun. CALENDAR This was an informational item, which included the 80th Street Redevelopment Schedule. ADJOURN Authority Member Kleven moved to adjourn. Authority Member Pederson seconded. Motion carried unanimously. Respectfully submitted, Ne Be ' Ainistrat - ecretary S