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HomeMy WebLinkAbout2004.11.22 EDA MINUTES • CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES NOVEMBER 22, 2004 Pursuant to due call and notice thereof, a special meeting of the Economic Development Authority was held at City Hall, 7516 80th Street South, Cottage Grove, Minnesota on the 22nd day of November 2004. CALL TO ORDER The meeting was called to order at 8:00 a.m. by EDA President Wolcott. ROLL CALL Members Present: Jim Wolcott, EDA President • Sandy Shiely, EDA Vice-President Al Boche, EDA Member Dick Pederson, EDA Member Mike Wennen, EDA Member Members Absent: Glen Kleven, EDA Member Gerry Weingartner, EDA Member Others Present: Ryan Schroeder, EDA Executive Director Howard Blin, Community Development Director John Burbank, Senior Planner PHM Development Agreement EDA Executive Director Schroeder explained that the meeting had been called for EDA action on an updated development agreement between the EDA and PHM (Presbyterian Homes) for redevelopment of the Cottage Square site. He added that the EDA is also requested to approve a subordination agreement which establishes the order of creditors on the project. He noted that the City Council had already approved a separate agreement providing for $378,000 in Community Development Block Grant funding for the project. EDA Executive Director Schroeder listed changes to the development agreement as follows: 1. We have added language to acknowledge that 51% of market housing will be made available to persons with incomes at 80% of median at the initial lease up with the long term requirement at 20% of units after the initial lease is up. 2. We have added a leasing preference for Cottage Grove residents. 3. We have advanced completion dates for the residential component to 12/31/06. • Economic Development Authority - Minutes November 22, 2004 Page 2 4. We have recognized the enhancement in the base market value of the existing property to $4,025,000. The developer does not receive any tax increment for project value below this number. When we first began looking at this project the base value was about $1,836,300 in market value improved to$3 million in the initial agreement. 5. We have continued to allow for condemnation of leases but not real estate. 6. We have clarified that a developer contribution of $200,000 toward streetscaping does not include costs for pavement management with existing assessments of$90,929. EDA Vice-President Shiely asked about the status of the remaining leases for Cottage Square. EDA Executive Director Schroeder responded that he understood there are five remaining leases in effect. EDA Vice-President Shiely asked about the status of the Community College lease. EDA Executive Director Schroeder replied his understanding is that the college would remain in the space through the spring term, but beyond that was not clear. EDA President Wolcott asked if the new streetscaping would include an entrance sign on the west side of Highway 61. EDA Executive Director Schroeder replied that it would. EDA Member Boche asked how the priority for Cottage Grove residents to lease space would be monitored. EDA Executive Director Schroeder and Community Development Director Blin replied • that there is currently no provision for the developer to report on this, and that the item would be explored with PHM to determine the best way to monitor it. EDA Member Boche emphasized that it was an important issue. EDA President Wolcott asked if marketing of the retail space had begun. Community Development Director Blin replied that it had not. EDA Executive Director Schroeder noted that is also requested that authorization be granted to allow minor changes in the agreements by the attorneys. Motion by Shiely, second by Pederson to authorize the updated development agreement with PHM for redevelopment of the Cottage Square site. Motion carried unanimously. Motion by Boche, second by Pederson, to authorize approval of the Assignment and Subordination Agreement with PHM. Motion carried unanimously. ADJOURN Motion by Boche, seconded by Pederson, to adjourn the meeting at 8:30 a.m. Respe tf ly submitted, eil Belsc. p= ecordin• S-cretary •