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HomeMy WebLinkAbout1998.06.09 EDA PACKET s l • City of Cottage Grove ECONOMIC DEVELOPMENT AUTHORITY AGENDA Tuesday, June 9, 1998 7:30 A.M. 1. Call to Order • 2. Roll Call 3. Approval of May 12, 1998 Regular Meeting Minutes Approval of June 3, 1998 Special Meeting Minutes 4. Business Items A. Public Hearing Authorizing Sale of Property B. Review 1999 Budgets C. Project updates D. Review Site Plan for Renewal by Andersen—Jointly with City Council 5. Miscellaneous Business A. Reminder of 3M 50th Anniversary, Saturday June 13, 1998 6. Adjourn • Memo To: Economic Development Authority Members " From: Kirstin E. Barsness, Economic Development I. -''-`•r Date: 06/05/98 Re: Public Hearing Authorizing Sale of Property INTRODUCTION It is required by statute that the EDA hold a public hearing prior to the sale of property. Legal notice has been published and the hearing was called for at the special meeting held June 3, 1998. ACTION REQUIRED • The Authority should hold the public hearing, receive comment, and then consider passing the attached resoultion. • •Page 1 • RESOLUTION 98-03 RESOLUTION AUTHORIZING THE SALE OF PROPERTY BE IT RESOLVED by the City of Cottage Grove Economic Development Authority as follows: SECTION 1. RECITALS. 1.01. The City of Cottage Grove Economic Development Authority (the "Authority") approved a tax increment financing plan (the "Plan")for the Tax Increment Financing District No. 1-9 (TIF District No. 1-9) on May 12 1998. 1.02. On June 3, 1998 the City Council of the City of Cottage Grove (the "City") approved the Plan. 1.03. The EDA entered into a development agreement with Renewal by Andersen, a Minnesota corporation (the "Developer") whereby the EDA agreed to purchase property lying within the Cottage Grove Industrial Park, Washington County, Minnesota, and legally described as follows: . Parcel Number A 30-acre portion of 21-027-21-33-0001 Legal Description That part of the Southwest Quarter of Section 21, Township 27, Range 21, Washington County, Minnesota, described as follows: Commencing at the southeast corner of said Southwest Quarter; thence North 89 degrees, 53 minutes, 43 seconds West, assumed bearing along the south line of said Southwest Quarter, a distance of 610.00 feet to the westerly line of Jamaica Avenue, which is the point of beginning of land to be described; thence continuing North 89 degrees, 53 minutes, 43 seconds West, along said south line, a distance of 1242.91 feet; thence North 0 degrees, 07 minutes, 51 seconds East, parallel with said Jamaica Avenue, a distance of 1272.80 feet; thence South 74 degrees, 28 minutes, 27 seconds East a distance of 1289.17 feet to the westerly line of said Jamaica Avenue; thence South 0 degrees, 07 minutes, 51 seconds West, along the westerly line of said Jamaica Avenue, a distance of 930.00 feet to the point of beginning. Except the Southerly 50.00 feet thereof. The City agrees to sell the Property to the Developer for the amount of$1.00, subject to the EDA's compliance with the requirements of the Minnesota • Statutes, section 469.105. Pursuant to Minnesota Statutes, section 469.105, the EDA has held a public hearing on the proposed sale of the Property to the Developer, following • published notice as required by law, at which hearing all persons wishing to express an opinion were given an opportunity to do so. SECTION 2. FINDINGS. 2.01. It is hereby found and determined that the sale of the Property to the Developer is in the best interest of the EDA. 2.02. It is hereby found and determined that the sale of the Property furthers the EDA's general plan of economic development of the community. SECTION 3. AUTHORIZATION. 3.01 The President and Executive Director are hereby authorized and directed to execute the appropriate documents to facilitate sale of the Property to the Developer. 3.02. The President, Executive Director, staff and consultants are hereby authorized and directed to take any and all other steps necessary or convenient in order to accomplish the sale of the property. Dated June 9, 1998. • ATTEST President Executive Director • Memo To: Economic Development Authority Members From: Kirstin E. Barsness, Economic Development DiretXtilail441/ Date: 06/05/98 Re: 1999 Budget INTRODUCTION It is time again to discuss the Budget for the EDA. Budget preparation and review begins this month and staff would like direction on the allocation of additional funds. DISCUSSION • Within the Economic Development Authority budget, there has been an allotted increase of $2,130 equating to a 3% increase over last years funding level. Staff would recommend augmenting either the professional services or advertising line items. The reasoning behind stepping up the professional services budget is the amount of services we have purchase this year alone has significantly increased over previous years. As the community continues to complete more industrial projects we will continue to use more financial services. Advertising cost continue to escalate as the price of postage and paper increase. To maintain our current levels, it may be prudent to increase funding. As background, I have attached a copy of the budget with existing funding level and the budget memorandum distributed by City Administrator Schroeder. Tuesday morning staff will be looking for direction on how to allocate our 3% increase. Please, come prepare with suggestions. • •Page 1 City of Cottage Grove • Office of City Administrator Memo To: Department Heads From: Ryan Schroeder, City Administrator Date: May 19, 1998 Re: 1999 Budget Process Enclosed, please find the various forms, of which you are all-familiar from past budget deliberations. If you have any questions regarding these forms please contact Liz. Following are a few thoughts about the 1999 budget in an attempt to provide what direction I may at this time. PERSONNEL Michelle Wolfe will be providing for the Personal Services budget. Hence, you do not have to attempt to figure out what staffing will cost your department in 1999. It is assumed that the 1999 staffing complement will not increase from authorized levels in 1998. The only exception that I can imagine at this time is if a staffing improvement actually results in long term cost savings. An example would be where an existing services contract can be performed in house at a lesser cost. For any department suggesting a staffing enhancement the analysis of cost savings must be part of that request. If that is not provided it will not be approved. CAPITAL IMPROVEMENTS Given Council discussions on our debt levy and issues related to that, it is expected that 1999 will be a year devoid of capital improvements except where absolutely necessary(for instance to facilitate a new manufacturing facility or to provide satisfaction to a safety concern). This may impact staffing, supplies and maintenance lines. CAPITAL OUTLAY It is not expected that there will be opportunity within the 1999 budget for any new equipment but replacement items. Further, expect questions on your ability to keep existing replacement equipment longer. In 1998 the PD refurbished squads rather • Page 1 • than purchasing new replacements. It is expected that this could be replicated elsewhere. COMMODITIES AND OTHER UNES Outside of personal services and capital items it is hoped that the balance of the budget can be restricted in order to improve contingency lines (for future equipment and building replacement, and the like). Hence, we are providing you with maximum budget allocations by department. Within each department it is hoped that you critically review existing program delivery in order to come up with alternative modes allowing for reductions in expenditure lines. The allocations by department are attached for your use. MISCELLANEOUS ITEMS You all know that we are updating the training policy. As part of the 1999 process you will be expected to provide for department and individual training plans (which should include multiple years). As it relates to line item allocations, it is generally not expected that a training allocation will be approved without the class or topic area being included within the training plan. It is further expected that a training contingency will be housed in the Personnel budget for those items unforeseen at this point(but good luck accessing that). • It is also expected that your line item requests will be supported by documentation, particularly if an increase is represented. As an example, if you have a small tools line of, say$100 in 1998, and you request the same $100 in 1999 you may limit your level of support to"miscellaneous bits and blades" (or whatever). tf, however, the item is increased to$500 I will want to know what specific expenditure is driving the need for an additional $400. You all also probably know that I will look for various nickels and dimes that, after a while, add up to real money. A favorite of mine is subscriptions and memberships that are redundant within the organization. Another favorite is training that is out of state/area or for a purpose not directly related to the staff members current job duties. You all probably also know that for anything that looks like a budget enhancement I -- will want to know what the payback period is. A good example is the lighting improvements at the ice arena during 1998. With that, if you have any questions please do not hesitate to ask. I look forward to some good discussions. • •Page 2 • • Special Revenue Funds Equipment Replacement subject to discussion Special Rec 130,200 3,910 134,110 Only if covered by adequate revenues Ice Arena 372,800 11,180 383,980 Only if covered by adequate revenues Recycling 89,900 2,700 92,600 Only if covered by adequate revenues Community Watch Subject to grant Gambling Subject to gambling contributions Forfeiture Subject to sufficient forfeiture revenues Surface Water 15,000 15,000 Economic Development F nd 111,000 DA 42,800 153,800, 4,610 158,410 Engineering 70,900 2,130 73,030 • Enterprise Funds Water • Distribution 1,113,300 Adminstration 144,500 1,257,800 37,730 1,295,530 Sewer Operation 1,348,400 Administration 145,000 1,493,400 44,800 1,538,200 Street Light 353,300 10,600 363,900 Golf Operations 772,400 Maintenance 300,000 1,072,400 32,170 1,104,570 Ambulance 572,600 17,180 589,780 Fleet Mtce 510,800 15,320 526,120 Subject to revenue review Self Insurance 784,500 Subject to review • 0.03 • 98 Budget Total Amt Incr 99 Budget Comment General Administration Mayor 62,500 Admin 185,700 Personnel 78,300 326,500 9,800 336,300 . Professional Services 247,900 7,440 255,340 Building Maintenance 245,400 7,360 252,760 Community Programs 50,600 1,520 52,120 Clerk Clerk 134,400 Election 35,600 170,000 5,100 175,100 Finance Finance 326,400 MIS 126,200 452,600 13,580 466,180 Comm Development Planning 238,100 Hist Pres 7,200 Inspections 320,400 • 565,700 16,970 582,670 Public Safety Police 2,911,300 • Animal Cont 69,300 • Fire 702,800 EMS 32,300 3,715,700 111,470 3,827,170 Public Works PW Admin 238,700 Street 863,100 Signs 150,500 Snow Ice 217,700 Forestry 129,600 1,599,600 47,990 1,647,590 Recreation Pks Mtce 508,900 Recreation 260,400 Pool 80,700 850,000 25,500 875,500 Transfer 434,300 13,030 447,330 Total general 8,658,300 259,760 8,918,060 • • • City of Cottage Grove Department Budget Request • Fund 286 Pero rate 0.046 1A99BUDIDET1135.XLS)Sheet1 Department Econ Dev Authority FICA rate 0.0765 Program 1135 Group ins W/C rate 0.0044 Percent Over(Under) 1997 1998 1999 Prior year Object Code Description Actual Budget Detail Request Budget Actual Comments Commodities 4200 Office Supplies Total 4200 78.80 0.00 0.00 Total Contractual Svcs 78.80 0.00 0.00 *DIV/01 0 Contractual Services 4300 Professional Svcs Total 4300 4,014.71 10,000.00 0.00 4301 Engineering Svcs Total 4301 780.00 8,700.00 0.00 4302 Legal service • Total 4302 156.45 10,000.00 0.00 4305 Fees For Service Total 4305 2,308.98 4,300.00 0.00 4311 Postage Total 4311 0.00 400.00 0.00 4341 Advertising Total 4341 7,241.12 9,200.00 0.00 4350 Insurance Total 4350 100.00 200.00 0.00 4403 Travel/Training Total 4403 150.00 0.00 0.00 4445 Sales Tax 70.93 0.00 0.00 Total Contractual Svcs 14,822.18 42,800.00 0.00 -1 -2.8876 • Total De• rtment 14,900.99 42,800.00 0.00 -1 -1 Page 1 City of Cottage Grove Department Budget Request Fund 285 Pera rate 0.046 I:199BUD1[DET1135.XLS)Sheetl • Department Econ Dev Authority FICA rate 0.0765 Program 1135 Group ins WIC rate 0.0044 Percent Over(Under) 1997 1998 1999 Prior year Object Code Description Actual Budget Detail Request Budget Actual Comments • • Page 2 • Memo To: Economic Development Authority MembersZ, o From: Kirstin E. Barsness, Economic Developme46or Date: 06/05/98 Re: Project Updates During Tuesday's meeting, staff will provide verbal updates on various development projects. • • •Page 1 • • Memo To: Economic Development Authority Members q��I ',(�, From: Kirstin E. Barsness, Economic Development'C9it'e &- Date: 06/05/98 Re: Review of site plan—Renewal by Andersen INTRODUCTION The EDA is invited to join the City Council in reviewing the site plan for the Renewal by Andersen project. • DISCUSSION • Since the staff met to preliminary review of the site plan, the company has changed the building configuration. The resulting changes have triggered the need for a variance. Considering the City's and company's desire to close on June 10, 1998, staff has fast tracked the variance process. The Planning Commission will have met on Monday, June 8, 1998 in workshop. The variance was added to their agenda in order to accommodate timing. A special City Council meeting will be convened at 8:00 a.m. on June 9th, and held in conjunction with the EDA at the tail end of the regular EDA meeting. Authority members can either stay for the discussion or choose to leave. • •Page 1