HomeMy WebLinkAbout1999.11.09 PACKET CITY OF COTTAGE GROVE
•
ECONOMIC
Secretary
DEVELOPMENT
AUTHORITY
AGENDA
TUESDAY, NOVEMBER 9, 1999
7:30 A.M.
1. Call to Order
2. Roll Call
3. Approval of October 12, 1999 Minutes
4. Business Items
A. Project Updates
• B. EDA Golf Tournament 2000
C. Marketing/Advertising
• Map
• Article in Midwest Business & Industrial Properties
• Direct Mail Promotion
• 2000 Advertising Recommendations
D. Business Subsidies
E. EDA Strategic Plan
F. Miscellaneous Updates
• MCES—Year 2000
• Comp Plan
• EDA Minutes
• Wakota Bridge/Highway 61
G. Business Recognition Breakfast
H. December EDA Meeting
I. EDA Reappointment(s)
5. Miscellaneous Business Items
6. Chamber Business Meetings
7. Adjourn
F:\GROUPS\PER_ECON\KEB\EDA Packets\1999\Agendas\November.doc
1
City of Cottage Grove
•
Memo
To: Economic Development Authority Members ��
From: Michelle A. Wolfe, Assistant City Administrator Jam"
Date: 11/03/99
Re: Project Updates Item 4A
OFFICE MANUFACTURING: CCE
This company appears to be initiating the process to purchase land in the Industrial
Park. We are expecting a letter of intent this week, and are planning for the next steps
in the process. This is a company currently leasing approximately 8,500 SF. They are
• looking to build a new 15,000 SF facility on 97,000 SF next to the USPS site. We can
provide you with full details at the November 9 meeting.
METRO EAST
We did not respond to any Requests for Proposal in October. However, we are in the
process of responding to three requests:
1. Industrial Manufacturer seeking an expansion facility for corporate headquarters.
They are interested in 8-10 acres for a 115,000 square foot building. Currently 130
employees with 5% growth per year. The proposal is due November 5.
2. Restorative and utility construction company, experiencing significant growth.
Seeking a site to consolidate operations. They are looking for 5 acres, 15,000
square foot building. They have 120 employees, expecting to add 40-50 in two
years. There may be an outside storage concern. This proposal is also due
November 5.
3. A cutting and conversion company is seeking an existing facility where they can
relocate and expand their facility. Since we do not have any existing facilities, we
are exploring whether a spec building currently under consideration could
accommodate this request.
1111 As far as the proposals we previously submitted, the following information is available:
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\Nov 99 Proj Update.doc
1. Ryan and I met with a company on Monday November 1. This company works in
the paper products. They are interested in seven acres, with a 30,000 square foot
building. In addition, they want the ability to expand to 50,000 square feet. We had •
previously submitted information and a proposal to this company. Based on what
we provided, they were interested in meeting with us. At this time we are in the
process of collecting some follow-up information to send to them.
2. 75,000 SF building, heavy industrial handling and storage equipment (submitted late
August: The client was provided with proposals, but have not yet responded back to
MEDP. The client is looking in seven states. No new information is available.
3. 2-acre office/warehouse, international (submitted late August): The CEO and his
representative here conducted site visits on their own on September 1. Apparently
they were pleased with the Metro East sites, but have not made any decisions yet.
They have not yet developed their short list, but this project is still very "alive" and
they seemed to like Cottage Grove.
4. 120,000-180,000 office/showroom/warehouse (submitted mid-August): Although not
officially announced, it appears they have selected a west metro site.
5. Fortune 100 company: It is believed they are going to select a west metro location.
6. Metal galvanizing (originally submitted January; a site visit occurred in late June):
They have decided to build in South Carolina. Evidently, they might consider
Minnesota again in the future.
7. Transportation headquarters, 15,000-20,000 sq. ft building (submitted late March):
Originally, Cottage Grove was on short list for the owner. The client hired a broker
after meeting with MEDP, and the process seems to have slowed. They are not
returning calls to MEDP staff.
I can provide additional information about these projects at the meeting of November 9.
HOTEL/RESTAURANT/OFFICE
Ryan and the developer are meeting with the School Board on November 4 to try and
finalize some details before proceeding with the traffic study. We can update you
further on this project at the November 9 meeting.
GROVE PLAZA
The major new tenant has pulled out. EBL&S is now working with other similar tenants,
since much of the preliminary work has been done and information collected. We will
update you further at the meeting.
APi
Representatives from APi will be visiting Cottage Grove on November 9. A detailed
proposal was mailed to them last week. We will be showing them the Industrial Park,
and going over our proposal with them. The Mayor and Councilmember Wolcott will be
assisting with the presentation. In addition, EDA members Shannon Green and Fred
Luden will be providing information about doing business in Cottage Grove, and the
available work force. •
\\CG_FS1\SYS\GROUPS\PER_ECON\MA\MEDA Memos\Nov 99 Proj Update.doc
i
HIGH TECH MANUFACTURING
SIn late October we received a request for information from Cresa Partners. They are
working with a high-tech manufacturing company looking for 65 acres. They are in the
first stage of simply trying to identify industrial parks with that much land available. We
responded with a packet of information and a map of the Industrial Park.
POST OFFICE
The USPS has submitted a grading plan. Engineering is reviewing it now for
compliance. Things are slowly progressing.
OFFICE/WAREHOUSE PROJECT
A site plan was submitted to the Planning Department for review. The plan shows
phase one construction of 44,000 s.f. No new information is available. The goal is to
find some potential tenants for this building before proceeding.
DTED REQUEST FOR INFORMATON
No new information is available. Staff continues to follow-up with DTED on this project.
MURPHY WAREHOUSE
Discussions continue with possible tenants for this facility.
MISCELLANEOUS
• During the past few weeks, Steve Barrett has done extensive follow-up work on
• several leads that came in during the past six months. In most cases, we have no
new information to report. However, two projects that seemed fairly interested in
Cottage Grove have delayed their plans for acquiring real estate. In one case, plans
have been delayed 12 to 18 months, while the other is delayed until approximately
Spring 2000. We will actively stay in touch and follow-up on these leads
• Planning staff met with CP Rail to discuss an expansion of the auto marshalling
yard.
• Planning staff continues to work with a developer for the property next to and behind
Menards.
• Gerlach Services have filed their building permit application to construct a 3,500 SF
building addition.
• Received a lead from a Cottage Grove resident about a business looking to relocate
and expand. Staff sent them a packet of information about Cottage Grove and
expressed a desire to meet with them and see if we could meet their expansion
needs.
• A developer is interested in building a commercial retail project in Cottage Grove.
They met with planning staff this week. Evidently, they have had discussions with a
landowner.
• A new coffee shop will be opening very soon west of Highway 61 and a cafe/coffee
shop is going into the former Bria Zia space.
• As usual, we will attempt to get any updates possible regarding any of these projects
between now and the meeting on November 9.
\\CG_FS1\SYS\GROUPS\PER_ECON\MA\MEDA Memos\Nov 99 Proj Update.doc
• City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
k
Date: 11/05/99
Re: EDA Golf Tournament Item 4B
Two golf dates are scheduled for next year. This will allow for two separate events —
one for the EDA and one for the Chamber. The dates are as follows:
• Tuesday, June 13 (noon, shotgun)
11
Tuesday, August 22 (noon shotgun)
We need to confirm these dates. An addition, we need to have some discussion in the
future about whether to have one event or two separate, and if two, select the individual
dates. Currently, River Oaks has the Chamber event scheduled for June and the EDA
event in August.
\\CG_FS1\SYS\GROUPS\PER_ECON\MA\MEDA Memos\Nov 99 Golf.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator /1/(4/6
Date: 11/05/99
Re: Marketing/Advertising Update Item 4C
COMMUNITY MAP
I will again bring the sample Hastings map to the meeting, along with the Ott's map that
was discussed at our last meeting. The Chamber has directed that the advertising rates
be set for a break-even rate, not to make a profit. Jeff Patterson of the Bulletin
• Newspapers has put together three options for the advertising rates: Option A, no EDA
sponsorship, Option B, $500 EDA sponsorship, and Option C, $1000 EDA sponsorship.
A copy of correspondence from Jeff Patterson, outlining these options, is attached.
The EDA should decide on an option. The Chamber Board will next meet on November
11, when it is hoped final direction on the style of map and advertising rates will be
decided.
ARTICLE IN MIDWEST BUSINESS AND INDUSTRIAL PROPERTIES
An article entitled "Minnesota workforce data paints a bright picture" appeared in the
July/August edition of Midwest Business and Industrial Properties. A copy of this article
was recently mailed to you along with some other correspondence. It is nice to see
Cottage Grove mentioned in a regional publication. We are considering some
advertising possibilities with this publication for 2000. This publication continues to
contact us for editorial leads for stories, therefore, this may be a good resource for
upcoming public relations possibilities.
HOLIDAY MAILING
Staff is preparing a holiday promotional piece for direct mail. A copy of the proposed
layout is attached. Essentially, it will be a post card with an aerial of the Industrial Park
on the front, with "Holiday Greetings" and City/Industrial Park information on the back.
We are currently finalizing our mailing list. It is likely that we use the same list we used
for the golf tournament, and we will probably also send to all or a part of the Minnesota
• Real Estate Journal subscribers. We can update you on this at the meeting.
\\CG_FS1\SYS\GROUPS\PER_ECON\MAWEDA Memos\Nov 99 Market.doc
ADVERTISING PLAN FOR 2000
Management Analyst Dan King spent an extensive amount of time contacting various .
publications for 2000 rate information, editorial calendars, and related information. He
has compiled a spreadsheet that shows rates, circulation, and target audience
information. The spreadsheet is enclosed with your packet on legal size sheets. In
addition, a summary of any special focus issues for these publications is attached in a
table format. We tried to highlight topic areas such as commercial real estate,
economic development, and relocation in local publications. For regional and national
publications, we looked for Midwest- or Minnesota- focus issues.
From this information, using the proposed 2000 budget figures for advertising, we put
together several options. (See the attachment showing Options A through E). Option A
is essentially our current plan (Minnesota Real Estate Journal), with the addition of a
regional publication (3 ads) and a national publication (one ad in an issue focused on
Minnesota.) Option B would mean switching our local publication from MNREJ to City
Business, with three issues in a regional publication. Option C has a common theme
(MNREJ + City Business) with variations for spending the remaining balance of
budgeted funds. Options D and E reduce the MNREJ ads to just the quarterly Leasing
Guides, targets six issues of City Business, and leaves most of the balance flexible for
decision making throughout the year. The difference between Options D and E is that
Option D includes at least one ad in a national publication.
After extensive review, staff recommends pursuing Option D. The reasons for this
recommendation are as follows:
•
• We have done extensive advertising in the MNREJ for the past few years; it is
possible we can reduce our frequency in this publication and still retain whatever
name recognition we have achieved.
• It provides an opportunity to try City Business, which has a slightly different audience
and much higher circulation. With a budget for six ads, we can be included each
time they have a commercial real estate focus.
• It includes an opportunity to try a national publication, Site Selection. This
publication has a 2000 issue planned for a focus on Minnesota. They have given us
a good discount for a one-time ad. And, they have indicated an interest in pursuing
editorial possibilities (I.e. we feed them story ideas about Cottage Grove.)
• It includes three ads in the regional publication "Midwest Business and Industrial
Properties." We have negotiated a discount on the rate (a six-time rate for three
ads), and received an additional discount as members of MAEDC (Mid-America
Economic Development Council). In addition, all three issues we would advertise in
would have a Minnesota focus. The editor has indicated on-going interest in stories
about Cottage Grove, and has stated he would put a picture of our community or the
Industrial Park on the first page of the Minnesota section in March if we commit to
three ads.
• There is a remaining balance we can use as the year progresses, allowing more •
flexibility than all other options except Option E.
\\CG FS1\SYS\GROUPS\PER ECON\MA\MEDA Memos\Nov 99 Market.doc
•
• Additional Marketing Efforts
Staff will be developing a full marketing plan for 2000, of which the advertising plan will
be one element. The plan will include such things as the golf tournament, direct mail
efforts, the Annual Report, cable TV, business outreach, and other means considered
appropriate.
Requested Action
Approval of a tentative advertising plan for 2000.
Attachments
IP
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\Nov 99 Market.doc
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from the
(`,cs[t.a ;e. (:;rove I t.'.c3t1cl22]ic eve.I() )3:1a.€Ytai: Authority
▪ We would like to remind you the Cottage Grove industrial Park offers many
amenities an expanding or relocating company needs to be successful.including.
• An educated.skilled,growing and available workforce, ••
The availability of hundreds of acres of choice land,
sJ Modern infrastructure serviced by NSF gas and electric, •
J An excellent transportation network within minutes of Minneapolls&St. Paul.
including rail,barge,and highway, i.
0 Two Regional international airports within 20 minutes,
J Fast track administrative approval of development, ••
U Financial incentives for qualifying companies.
To learn more about the opportunities for growth In Cottage Grove,call
Michelle Wolfe at(651)458-2882, •
...
III
...
.:- :
Economic Development Department
7516 80t Street South
Cottage Grove,MN 55016
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Bulletin + + South Washington County Bulletin Woodbury Bulletin
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ews Ca 80th ve M 8420 Giiy Centre Di',
'7584 p,e 0th St, o, 550'!6 Woo�lhury, MN 55125
459-3434 730-4007
October 14, 1999
'1'0: Ryan Schroeder
From: Jeff Patterson
Re: Community Maps
As discussed, the following options are available in the publishing of Cottage (:rove Area Community Map 2000:
Option A- No I;DA sponsorship
Size: 18" x 24.5"
Color: } ull
Stock: 100 # text glossy
Quantity: 10,000
Ad prices: single $205, double $370, covers $850
)pt.ion It- $500 EDA sponsorship
Size: 1W' x 24.5"
Color: pull
Stock: 10044 text glossy
Quantity: 10,000
Ad prices: single $195, double $350, covers $800
Option A - $1000 EDA sponsorship
18" x 24.5"
Color: Full
Stock: 100 # text glossy
Quantity': 10,000
Ad prices: single $185, double $330, covers $750
I am still waiting for bids on larger quantities.
Thank you,
• - !Patterson
cc: Fred Loden
EDITORIAL CALENDAR SUMMARY
PUBLICATION FOCUS ISSUES/NOTES •
BUSINESS January issue is annual "Site Seekers Guide"which is used as a
FACILITIES reference throughout the year, also distributed at al trade shows for the
year. October state analysis on Minnesota. December issue is annual
Economic Development Achievement Awards.
EXPANSION May issue state focus on Minnesota
MANAGEMENT
CITYBUSINESS Numerous issues with focus on commercial real estate, April 21
issue focus on business relocation and economic development
loans and business relocation survey.
MIDWEST Three issues have focuses that include Minnesota - March/April,
BUSINESS AND July/August, and November/December. Also has the
IND. PROP. opportunity for editorial article.
MINNESOTA February focus on commercial real estate, June focus on
BUSINESS AND Economic Development Companies.
OPPORTUNITY
MN REAL March 6 issue focuses on corporate real estate; September 18
ESTATE issue focuses on relocation with an industrial insert. •
JOURNAL
MINNESOTA Nothing of particular interest
TECHNOLOGY
OFFICE AND March issue is "Guide to Economic Development, Directory of
INDUSTRIAL Economic Development Offices"
PROPERTY
SITE SELECTION May issue has section entitled "Economic Developers Secret
Weapons", November issue regional focus on Midwest.
Also has the opportunity for editorial article.
TWIN CITIES February issue focuses on commercial real estate, with the
BUSINESS NAIOP (Nat'l Assc. Industrial Office Parks) awards. September
MONTHLY also focuses on commercial real estate. December focus on
expansion and relocation.
US SITES AND
DEVELOPMENT
VENTURES February focus on real estate, and a growth guide issue in May.
WORLD TRADE
S
\\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\Advertising and Marketing\Editorial Calender Focuses.doc
ADVERTISING OPTIONS FOR YEAR 2000
•
BUDGET = $18,700
PUBLICATION RATE
OPTION A
0 Minnesota Real Estate Journal $13,360
12 issues,plus 4 Leasing Guides,
(16 quarter page color ads)
❑ Midwest Business and Industrial Property $3,375
3 issues with MN focus
• 0 Business Facilities $1,830
1 issue,MN focus
Total $18,565
Leaves balance of$135
Advantages: Disadvantages:
Local,Regional,and National exposure Leaves little extra funds,continues
MBIP offers editorial opportunity,cover space. same pattern of local focus
Business Facility has manufacturing focus,is used at
various trade shows,and has a large circulation.
•
\\CG FS1\SYS\GROUPS\PER_ECON\Economic Development\Advertising and Marketing\ADVERTISING OPTIONS
FOR YEAR 2000.doc
OPTION B •
❑ City Business $15,312
12 issues
❑ Midwest Business and Industrial Property $3,375
3 issues with MN focus
Total $18,687
Leaves a balance of $13
Advantages: Leaves little extra funds,
Try new target market No national exposure
MBIP discount,editorial opportunity and cover space Less variety
May be able to negotiate down CityBusiness
rate based on 12X rate •
CityBusiness has numerous issues with
commercial real estate and business relocation.
•
❑ OPTION C
❑ Minnesota Real Estate Journal $8,350
4 Leasing Guides+ 6 issues
10 quarter page ads total
❑ CityBusiness $7,656
6 issues,focus on commercial real estate
Total $16,006
Leaves a balance of$2,694
*See Cl,C2,C3 on next page for options using this balance.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\Advertising and Marketing\ADVERTISING OPTIONS
FOR YEAR 2000.doc
• OPTION Cl
O Minnesota Real Estate Journal $8,350
4 Leasing Guides+6 issues
10 quarter page ads total
O CityBusiness $7,656
6 issues,focus on commercial real estate
❑ Midwest Business and Industrial Property $3,375
3 issues,focus on MN
Total $19,381
(Over budget by$681)
Advantages: Disadvantages:
Keeps a lot of MNREJ,adds CityBusiness and No national exposure,assumes negotiation with
three regional issues with editorial,cover;think CityBusiness,assumes MNREJ discount,
we can do within budget after negotiating with No Extra Funds
CityBusiness.
OPTION C2
❑ Minnesota Real Estate Journal $8,350
4 Leasing Guides+6 issues
❑ CityBusiness $7,656
6 issues,focus on commercial real estate
❑ Midwest Business and Industrial Property $2,250
2 issues,focus on MN
Total $18,256
Leaves a balance of $444
Advantages: Disadvantages:
Keeps a lot of MNREJ,adds CityBusiness No national exposure,assumes
and two regional issues with editorial and negotiation with CityBusiness,assumes
cover. MNREJ discount,Leaves little extra funds
OPTION C3
❑ Minnesota Real Estate Journal $8,350
4 Leasing Guides+6 issues,10 quarter page ads total
O CityBusiness $7,656
6 issues,focus on commercial real estate
O Site Selection $2,120
1 issue,focus on midwest region
O Business and Opportunity $500
Total $18,626
Leaves a balance of $74
Advantages: Disadvantages:
Maintains presence in MNREJ, Little money left over,
adds CityBusiness and one other local with community No Regional
focus, (MN Business and Opportunity)
adds national publication with editorial opportunity.
\\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\Advertising and Marketing\ADVERTISING OPTIONS
FOR YEAR 2000.doc
OPTION D •
❑ Minnesota Real Estate Journal $3,340
4 quarter page ads in Leasing Guide
❑ CityBusiness $7,656
6 issues with commercial property and relocation focuses
o Midwest Business and Industrial Property $3,375
3 issues with focus on Minnesota
❑ Site Selection $2,120
1 issue with midwest focus
Total $16,491
Leaves a balance of$2,209
Advantages: S Disadvantages:
More variety,Adds CityBusiness, Less Minnesota Real Estate Journal
Less MNREJ but keeps Leasing Guide Targets unproven market
Adds both regional(MBIP)and National(Site
Selection)with focus on area and editorial
opportunities.
More flexibility;use balance of funds for special
issues of other publications as deemed appropriate.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\Advertising and Marketing\ADVERTISING OPTIONS
FOR YEAR 2000.doc
• OPTION E
❑ Minnesota Real Estate Journal $3,340
4 quarter page ads in Leasing Guide
❑ CityBusiness $7,656
6 issues with commercial property and relocation focuses
❑ Midwest Business and Industrial Property $3,375
3 issues with focus on Minnesota
Total $14,371
Leaves a balance of$4,329
Advantages: Disadvantages:
4"
More variety,Adds CityBusiness,Less MNREJ but keeps Less MNREJ, •
Leasing Guide. Adds regional(MBIP)with focus on area and Targets unproven markets
editorial opportunities.
Allows for much the most flexibility;allows for the balance of
funds left to be available for use throughout the year on special
issues of other publications as deemed appropriate.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\Advertising and Marketing\ADVERTISING OPTIONS
FOR YEAR 2000.doc
• City of Cottage Grove
•
Memo
To: Economic Development Authority Members Q
From: Michelle A. Wolfe, Assistant City Administrator (Y (RIA.A
Date: 11/05/99
1
Re: Business Subsidies Item 4D
Under a new law effective August 1, 1999, cities are required to adopt criteria for
awarding business subsidies. Before signing any business subsidy agreements on or
after August 1, 1999, a city must adopt criteria that have been developed after a public
hearing. The law allows considerable flexibility in determining what these criteria are.
• For your information, the types of assistance meeting the definition of a "business
subsidy" include:
• State or local government agency grants
• Contributions of personal property, real property, or infrastructure
• The principal amount of a loan at rates below those commercially available
• Reductions or deferrals of taxes or fees, including tax increment financing (TIF)
• Guarantees of any payment under any loan, lease, or other obligation
• And preferential use of government facilities
Attached is a memorandum and a proposed Resolution prepared by Steve Barrett. The
League of Minnesota Cities provided copies of resolutions adopted in other Minnesota
cities. These were reviewed, along with the statute, in preparing the draft resolution.
As you can see from reading Steve's memo, we are recommending language that
provides flexibility to the City in approving these projects.
REQUESTED ACTION
Review the proposed resolution and the criteria contained therein. If you comfortable
with the criteria, recommend adoption to City Council. The appropriate public hearing
will be scheduled for the first City Council meeting in December.
Attachments
\\CG FS1\SYS\GROUPS\PER ECON\MAW\EDA Memos\Nov 99 Subsidies.doc
•
(ta e Grove MEMO /ro,n
Steve Barrett
Ma agement Analyst
TO: Michelle Wolfe
DATE: Monday, October 25, 1999
RE: CRITERIA FOR BUSINESS SUBSIDIES
I read through your materials regarding cities coming up with criteria for granting
business subsidies. I also read through the 1999 Business Subsidies Act. Here is my take •
on things.
THE STATUTORY REQUIREMENT
The law requires each governing body to adopt a set of criteria for granting business
subsidies. The criteria must be subject to a public hearing. The only specific provision that
is required is a policy regarding wages to be paid for the newly created jobs.
NOTE: The statute does not mean the wage policy is the only criterion, nor does it
require the wage policy be a primary consideration for a city. Other factors enumerated in a
city's criteria can supercede the policy regarding wages. A review of Albert Lea's criteria
spells this out more clearly.
THE MOST FLEXIBLE CRITERIA—ALBERT LEA
Albert Lea has the most flexible criteria possible, allowing their council to act on a
case-by-case basis. The only statement on wage goals is that the setting of such goals
must be sensitive to prevailing wage rates, local economic conditions, external economic
forces, the financial resources of the business, and the competitive environment of the
business. The city is free to consider all factors when creating wage goals.
•
• Even when the stated criteria are not met (i.e. establishing wage goals) the city
11110 retains the right to approve projects that vary from their established priciples and
criteria. In other words, the city will act on a case-by-case basis, just as they did
before the new law was enacted. Wage goals do not even need to be considered by
the city. As long as the subsidy satisfies a legitimate public purpose, the city is free to
approve it.
THE LEAST FLEXIBILITY — SENATOR HOTTINGER'S MODEL CRITERIA
Some cities are not quite as flexible as Albert Lea. For example, Melrose
specifically requires recipients of subsidies pay the minimum wage. The City of Big
Lake (Option A) requires at least one job be created for each $35,000 in assistance,
as well as wage goals of$1 over the minimum wage. The St. Paul HRA lists other
criteria that must be considered, including the fringe benefits for new jobs, protecting
existing businesses in the city, and affects on the tax base.
By far the most inhibiting criteria is proposed by Senator Hottinger's Model
Criteria. His criteria requires 60% of new jobs be held by city residents. His criteria
also requires a commitment to provide "living wage jobs," a business-wide affirmative
action policy, and health care programs that include an employer contribution. Finally,
his Model Criteria requires the recipient to invest a matching portion of their subsidy for
worker training and housing opportunities for their employees.
• In total, Senator Hottinger's Model Criteria would seriously inhibit a city's
flexibility in considering all the factors that are important to a given city.
COTTAGE GROVE
In my opinion, Cottage Grove should consider adopting a criteria which
resembles the Albert Lea criteria, with other factors included from some of the other
samples. This would provide the most flexibility so the City Council can consider all
the factors that are important to the City.
I quickly drafted a sample criteria for your review, which is attached.
•
DRAFT
DRAFT OF RESOLUTION TO ESTABLISH •
CRITERIA FOR GRANTING BUSINESS SUBSIDIES
WHEREAS The City of Cottage Grove is required by Minnesota Statutes,
Sections 116J.993 — 116J.995 to adopt criteria for awarding business subsidies, and
WHEREAS, The City Council conducted a public hearing at its meeting of*** **,
1999 for the establishment of a business subsidy policy required by state law to
continue tax increment activity and other business subsidies offered by the City, and
WHEREAS, The City of Cottage Grove has an established history of providing
financial assistance and other business subsidies to private enterprises meeting certain
public goals and objectives.
NOW, THEREFORE, BE IT RESOLVED, that the following Business Subsidy
Policy is hereby established in the City of Cottage Grove:
Section 1. This Policy is adopted for purposes of the business subsidies act (the
"Act), which is Minnesota Statutes, Sections 116J.993— 116J.995. The terms used in
this Policy are intended to have the same meanings as used in the Act, and this Policy
shall apply only with respect to subsidies granted under this Act.
Section 2. With respect to granting subsidies, the determination of the number of
jobs to be created and the wage levels thereof shall be guided by the following
principles and criteria:
A. Each project shall be evaluated on a case-by-case basis, recognizing its
importance and benefit to the community from all perspectives, including
created or retained employment positions.
B. If a particular project does not involve the creation of jobs, but is
nonetheless found to be worthy of support and subsidy, it may be
approved without any specific job or wage goals, as may be permitted by
state law.
C. In cases where the objective is the retention of existing jobs, the recipient
of the subsidy shall be required to provide reasonably demonstrable
evidence that the loss of those jobs is imminent.
D. The setting of wage and job goals must be sensitive to prevailing wage
rates, local economic conditions, external economic forces over which
neither the grantor nor the recipient of the subsidy has control, the
individual financial resources of the recipient and the competitive
environment in which the recipient's business exists.
• E. While the creation of jobs is a desirable goal, which benefits the
community, it must be recognized that not all projects assisted with
subsidies derive their public purposes and importance solely by virtue of
job creation. In addition, the imposition of high job creation requirements
and high wage levels may be unrealistic and counterproductive in the face
of larger economic forces and the financial and competitive circumstances
of an individual business. In instances where a worthwhile project does
not involve job creation, it may be approved for a subsidy, as may be
permitted by law, with consideration given to the following:
1. Enhancing economic diversity by improving the mix of businesses
in the area, providing essential customer services to the area, or
generating a high level of secondary spin-off economic effects.
2. Stabilizing the community by investing in an area that is
economically depressed, investing in an area with slum and blight
conditions, or stimulating additional capital investment in real
property, equipment, and/or infrastructure in the area.
3. Increasing the tax base by providing a positive impact on the short
and long term tax base, or providing a positive impact on other local
business and individual property tax bills.
•
4. The projects risk-reward ratio, with special consideration of the type
YPe
of assistance requested and the current status of that specific tool
or program.
Section 3. Because it is not possible to anticipate every type of project which
may in its context and time present desirable community development and/or
preservation goals and objectives, the City must retain the right in its discretion to
approve projects and subsidies which may vary from the principles and criteria of this
Policy.
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 11/05/99
Re: EDA Strategic Plan Item 4E
Facilitator
I have asked Fred Luden to provide us with a list of possible facilitators for this session.
He is referring some possibilities to me. I was able to locate documentation indicating
that Tom Lahr was the facilitator used in 1991. Fred informed me that Mr. Lahr is now
• retired and lives out of the area.
In addition, I obtained a copy of the results from a survey recently done by the City of
Coon Rapids. They are in the process of doing some strategic planning with their City
Council, and asked other Metro Cities to recommend good facilitators. A copy of those
results is attached. In 1996, we spent $2,125 for a facilitator. I would expect to spend at
least that much in 2000.
Schedule and Process
In terms of the schedule, we will try to plan for February or March. At the last meeting,
you indicated that we might need two sessions. It is my understanding that we would
meet on a Saturday; if that is not your wish, please advise. In addition, I would need to
know if I should find a facility, or if we will meet at City Hall.
If we can decide on a facilitator/moderator, I will begin to work with them on process.
Any input you have at this time would be helpful. It is my understanding that you desire
the strategic planning session to be small, including EDA members and staff. I also
understood that you would like to come up with a means to get input from the various
City Commissions prior to the strategic planning session. In addition, it was mentioned
that perhaps we could get some input from the business community at the Annual
Business Recognition Breakfast. Since we are attempting to schedule that event in
January, it would be very timely in terms of our schedule.
Conclusion
• I've asked for your direction on a few items in the paragraphs above. With that direction
and the selection of a facilitator, we can develop a solid calendar and process for 2000
strategic planning.
\\CG_FS1\SYS\GROUPS\PER_ECON\MAVV\EDA Memos\Nov 99 Strategic.doc
Facilitators that Cities Have Used
•
Name Organization' .'hon No Referred By
Jim Brimeyer The Brimeyer Group (612) 945-0246 Jennelle Teppen, Inver
Grove Heights; Jim
Genellie, Hopkins
Larry Bakken Jennelle Teppen, Inver
Grove Heights
Don Salverda Don Salverda & (651)484-1335 Jennelle Teppen, Inver
Associates Grove Heights; Michelle
Wolfe, Cottage Grove
>' Barb Strandel (651)298-9898 Sherrie Le, Maplewood
Linda Giesen Milestone Group (651) 224-2704 Sherrie Le, Maplewood
Carl New ( Joyce Twistol, Blaine
Jim Lynn Lynn & Associates (612)474-2193 Matt Fulton,New
Brighton; Jeff Karlson,
Coon Rapids
Tom Allen Jim Genellie, Hopkins
Kent Ecklund Cincinnatus Jim Genellie, Hopkins
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• City of Cottage Grove
a
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 11/03/99
Re: Miscellaneous Updates Item 4F
COMPREHENSIVE PLAN
I recently mailed a memo to you, informing you of an upcoming workshop on the
Comprehensive Plan. The City Council and Planning Commission will be present for
this workshop discussion. As I mentioned in my memo to you, I anticipate questions
• regarding the Economic Development Section of the plan, and therefore wanted to
make you aware and invite you to attend. The workshop will be held November 10 at
7:00 p.m. in the City Hall Council Chambers.
YEAR 2000 ROAD IMPROVEMENTS/MCES
City Council recently approved a cost-sharing agreement with Metropolitan Council
Environmental Services for 2000 road improvements. The MCES is contributing 100%
of the cost for 110th Street, and a portion of the costs for Ideal, 100th, and Jamaica.
Ryan Schroeder can update you further on this if you have questions.
EDA MINUTES
We have decided to try rotating Steve Barrett, Dan King, and Neil Belscamper month to
month in attending EDA meetings and taking the official minutes. This is an effort to
help the Management Analysts as well as the Secretary keep up-to-date with EDA
activities, while at the same time making best use of our personnel resources. In
keeping with our team approach to Economic Development, we find it is very helpful for
all five of us to be able to quickly respond to questions and inquiries on ED matters.
We will try this change for six months and evaluate whether it is working well.
WAKOTA BRIDGE/HIGHWAY 61
As was discussed at the last meeting, there is concern that MnDOT has a funding deficit
for this project. Meetings have been held with the Wakota Bridge coalition and
discussions continue. A letter was sent to Governor Ventura, asking his assistance with
411 keeping this project on schedule. We can update you further on this matter at the
meeting.
\\CG FS1\SYS\GROUPS\PER ECON\MAW\EDA Memos\Nov 99 Miscc.doc
City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 11/05/99
Re: Annual Business Recognition Breakfast Item 4G
I am working with 3M to schedule the annual Business Recognition Breakfast. The past
few years, this event has been on a Monday morning (7:00 a.m. start) in February or
March. Since we are going with a similar theme to last year, a "State of the Cities"
presentation by City Administrators from Cottage Grove, Newport, and St. Paul Park,
411 we are looking at holding the event in January.
We have selected three possible dates: Monday January 17, Monday January 24, or
Wednesday January 26. These dates are being reviewed with speakers, 3M, and
elected officials. If you have a preference for one of these dates, please let me know.
•
F:\GROUPS\PER ECON\MAVV\EDA Memos\Nov 99 Break.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 11/03/99
Re: December EDA Meeting Item 4H
If we stayed on the usual schedule, the next EDA meeting would be held on Tuesday,
December 14. However, that same morning, the Chamber will be hosting the annual
Christmas Breakfast. Therefore, we are anticipating the need to reschedule the EDA
meeting. One option would be to meet later in the morning of the 14th, after the
breakfast. The other option is to select another date.
•
REQUESTED ACTION
Select a date and time for the December EDA meeting.
F:\GROUPS\PER_ECON\MAW\EDA Memos\Nov 99 EDA mtg.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 11/03/99
Re: EDA Reappointment Item 41
At the October meeting, you requested information on any EDA members whose terms
would be expiring at the end of 1999. According to records, Glen Kleven's term expires
12/31/99.
•
•
\\CG_FS1\SYS\GROUPS\PER_ECON\MAw\EDA Memos\Nov 99 Appoint.doc