HomeMy WebLinkAbout1998.07.14 EDA PACKET Secretary
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CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUmoRrry
AGENDA
Tuesday, July 14, 1998
7:30 A.M.
1110 1. Call to Order
2. Roll Call
3. Approval of June 9, 1998 Minutes
4, Business Items
A Development Tour& Golf Tournament
B. Modification of TIF 1-7
C. Urban and Rural Service Districts
D. Project Updates
E. Budget Discussion—Liz Johnson, Anenc a Director
5, Miscellaneous Business items
6,<`Adjourn
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City of Cottage Grove
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Memo
To: Economic Development Authority Members
ti-9
From: Kirstin Barsness, Economic Development Directo 'U'
Date: 07/09/98
Re: Development Tour and Golf Tournament
INTRODUCTION
Planning for the Development Tour and Golf Tournament is well underway. River
Oaks has been reserved for Tuesday, August 25th and an alternative date of
September 1st has been reserved in case of inclement weather.
DISCUSSION
To date the following activities have been completed:
• Pre-Invitations sent to approximately 140 people
• Tinnuci's confirmed—will order chocolate chip cookies!
• Bus transportation reserved
• Golf balls and plastic bags are ordered
• Received donations from 3M of 50th Anniversary hats, visors, and inserts/fliers
• Sponsorship of lunch will be by NSP
• Sponsorship of beverages will be by Welsh
• Tent canopy reserved
Items still left to complete include:
• Invitation and registration materials developed and mailed
• Order golf shirts
• Develop trivia game
• Arrange foursomes
I plan to order white golf shirts with an embroidered CG logo and "Cottage Grove"
text. Any other suggestions are welcomed, as well as a suggestion for quantity.
• If there are any other ideas for the toumament/event, please share them with staff.
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City of Cottage Grove ,
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Memo
To: Economic Development Authority Member
From: Kirstin Barsness, Economic Development Director
Date: 07/09/98
Re: Modification of TIF 1-7
INTRODUCTION
On December 31, 1998 the tax increment district (1-7) created for the Target Stores
project will expire. In 1996, the City modified the tax increment plan to allow for an
• option agreement with Glendennings in order to purchase land. This action was the
result of anticipated excess tax increments which needed to be expended prior to the
district expiring.
Staff has been monitoring the fund balance in TIF 1-7, and with help from Ehlers and
Associates, it has been determined that the excess increments are greater than
expected. Another modification to the plan is necessary.
DISCUSSION
Due to the type of district, funds from 1-7 can be shifted throughout portions of the
City as defined by Development District No. 1. The funds must be used for economic
development related activities and have to be expended by December 31, 1998.
Proposed ideas for plan amendments include:
A. Moving funds to the Renewal by Andersen Tax Increment District to pay for the
infrastructure improvements related to the project.
B. Move funds into failing housing TIF districts.
C. Purchase additional property in the Industrial Park.
• D. Utilize funds for the 1998 Economic Development Budget, if allowed by statute.
E. Purchase land for commuter rail transit station. •
Steps have been taken for approving the modification at the August 5, 1998 City
Council meeting. The Public Hearing will be called for on July 15, 1998. Both the
School and County have been asked and have verbally agreed to waive their 30-day
comment period. This was necessary to accommodate timing for the infrastructure
improvements for Renewal by Andersen.
Since the EDA does not have a regular meeting scheduled after the Council calls for
the Public Hearing and before the actual hearing, a special meeting to review the
plan is needed. EDA members need to decide which date and time will work best for
holding a special meeting.
ACTION REQUIRED
The EDA needs to designate a special meeting date.
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• City of Cottage Grove
Memo
To: Economic Development Authority Members :AAP
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From: Kirstin Barsness, Economic Development Dire
Date: 07/10/98
Re: Urban and Rural Service Districts
INTRODUCTION
Cottage Grove is very unique, in that it is one of a handful of cities that has two taxing
districts based on a designation of urban and rural service districts. The tax rate,
used to calculate property taxes, is different for each district, with urban bearing the
• higher rate.
Staff discovered that contrary to our understanding, all parcels in the industrial park
are designated rural. The county has a resolution from 1986 which calls out specific
parcels to be included in the rural service district, including parcels currently in the
Industrial Park.
It is time to change the designation, especially considering that the Industrial Park is
within the urban service area, is developing, and that the tax rate for tax increment is
based on the tax rate in the year the tax increment district is created.
DISCUSSION
The City Council will be calling for a public hearing on July 15, 1998. It is necessary
to have the hearing at a special City Council meeting on July 31st so that the
ordinance amendment can be filed by the August 1, 1998 deadline.
Unfortunately, the tax increment district for Renewal will have a frozen base tax rate
based on the rural rate. If we effectively adopt the ordinance and file a certified copy
with the county by August 1, we will remain on the rural rate till June 30, 1999.
Without the filing by August 1, the rural rate would be the base rate till June 30, 2000.
• Any new tax increment districts created between now and June 30, 1999 will need to
use the rural tax rate, but after, we will be able to use the urban. The benefit of the
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urban is the increase in property tax collected or a greater amount of tax increment •
available to assist development.
An example of the difference for a $1 million market value project:
• rural rate (1.13)approximate property tax—$39,550
• urban rate (1.20) approximate property tax—$42,000
For a $5 million market value project
• rural rate approximate property tax—$197,750
• urban rate approximate property tax—$210,000
As you can see, the larger the project, the larger the discrepancy between the
property taxes collected.
The EDA does not have to take any formal action on this item. However, a
recommendation to the City Council encouraging them to amend the ordinance
would be appropriate. This is a complex issue and your understanding of the impacts
and support is needed.
ACTION REQUIRED
The EDA should pass a motion recommending that the City Council amend Section •
11-4 and 11-5 of the City Code which relates to urban and rural service districts.
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• J City of Cottage Grove
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Memo
To: Economic Development Authority Members ,,,,,
From: Kirstin Barsness, Economic Development Dire
Date: 07/07/98
Re: Project Updates
An overview of various development projects will be provided by staff at Tuesday
morning's meeting. If there are specific questions related to a project, please bring
them with you.
ID
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City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Kirstin Barsness, Economic Development Dir: 4-'
Date: 07/07/98
Re: Budget Discussion
INTRODUCTION
The Authority requested an opportunity to learn more about the funding mechanisms
for economic development. A historical perspective of past budgets and an overview
of current funding practices will be provided Tuesday morning.
Finance Director Liz Johnson will be attending the meeting and she will explain the
workings of the two budgets. Due to timing budget meetings took place the week
prior to the EDA's meeting—there will only be information available at the meeting.
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