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HomeMy WebLinkAbout2015-04-14 Approved Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES April 14, 2015 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove, Minnesota 55016 on the 14th day of April, 2015. I. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA Member Dennis. II. ROLL CALL Members Present: Jeff Carter, EDA Member James Celkis, EDA Member (Late) Trent Cole, EDA Member Steve Dennis, EDA Member Tony Jurgens, EDA Member Ramona Westerberg, EDA Member Staff Present: Ryan Schroeder, EDA Executive Director Danette Parr, Economic Development Director Alicia McMonigal, Economic Development Assistant Others Present: Emily Buss, South Washington County Bulletin Jennifer Levitt, Community Development Director/City Engineer Gary Duclos, Owner, So St Paul Agri Properties Scott Tankenoff, Managing Partner, Hillcrest Development Peter Carlson, Senior Vice President, Opus Development Co Phil Cattanach, Lead Developer, Opus Development Co Andy Heieie, Land Sales Associate, Colliers Int’l Eric Rossbach, Vice President, Colliers Int’l III. APPROVAL OF MINUTES EDA Member Westerberg motioned to approve the March 10, 2015 EDA Meeting Minutes, and EDA Member Cole seconded, all present were in favor. IV. BUSINESS ITEMS A. Appointment of Officers- EDA Member Jurgens motioned to table the Appointment of Officers and EDA Member Carter seconded, all present were in favor. B. Development Update / BR&E Update EDA Executive Director Schroeder reviewed the Economic Development Authority - Minutes April 14, 2015 Page 2 development update materials that were included in the EDA packet. EDA Executive Director Schroeder stated the City of Cottage Grove has entered into a five year lease extension for River Oaks with 3M. There is an additional five year extension and needs to be extended for the additional five years in April of 2020. At that time, City staff will need to negotiate additional leases. EDA Member Jurgens asked if the Rush’s building owners intention was to sell or lease the property. ED Executive Director Schroeder stated that it is the intent of the property owner to lease or sell the property. He also stated that the property would need to be brought current on property taxes, further mitigation, and tenant build outs. C. So St Paul Agri Properties / Ag Co Public Hearing ED Director Parr reviewed the MIF (Minnesota Investment Fund) materials that were included in the EDA packet. EDA Member Dennis opened the Public Hearing. Mr Gary Duclos, owner of So St Paul Agri Properties, was present and EDA Member Jurgens asked the nature of his business. Mr Duclos stated that they primarily distribute pet food and pet products. EDA Member Westerberg asked about job creation types. Mr Duclos stated the main jobs created are going to be truck drivers, warehouse staff, administrative and technology. EDA Executive Director Schroeder gave a brief history of AGCO and its expansions over the years. He and EDA Member Dennis expressed their gratitude for being Cottage Grove’s business partner. EDA Member Dennis closed the Public Hearing. EDA Member Jurgens motioned to approve the resolution for So St Paul Agri Properties to approve the loan application to DEED, and EDA Member Celkis seconded, all present were in favor. D. TIF 1-15 EDA Executive Director Schroeder reviewed tax increment financing district 1-15 as indicated in the EDA packet. EDA Member Carter motioned to adopt the resolution to modify the development District Number 1, establishing TIF District 1-5 and adopting the TIF plan for the District, this was seconded by EDA Member Westerberg, all present were in favor. V. MISCELLANEOUS BUSINESS ITMES A. BEC Solar Project EDA Executive Director Schroeder discussed the acknowledgement of the BEC Solar Agreement. EDA Member Westerberg motioned the EDA to acknowledge the assignment of the rights of the BEC power purchase agreement for solar installation between the New Energy Equity, LLC and WGL Energy Systems. EDA Member Jurgens seconded the motion, all present were in favor. B. Housing Solicitation Results (Verbal Presentation) ED Director Parr gave a presentation regarding a housing solicitation that the City had conducted. ED Director Parr stated there were no formal letters received but calls were received by staff regarding the housing solicitations. ED Director Parr explained that even Economic Development Authority - Minutes April 14, 2015 Page 3 though the City has expansions and new development taking place in the business park, further job creation is needed in order for a sufficient work force housing demand to occur. EDA Member Jurgens asked what the general consensus was from the developers that contacted staff. ED Director Parr stated the pricing expectations between sellers and buyers needs to be in closer alignment. EDA Executive Director Schroeder stated there is an increased interest in the senior market and we are trying to add diversity to Cottage Grove’s market. Also, once the workforce numbers have increased there will be a higher need/demand for increased workforce housing. There is a lot of growth coming to the Business Park. If the Business Park continues to grow, the housing developments will increase. EDA Member Dennis stated Council wants to pursue housing diversity to create a boost in population numbers as many companies view sustainability measures with a population over 40,000. EDA Member Dennis stated Cottage Grove has been in the mid- thirties for over a decade. The second aspect is to provide full service/spectrum housing including single family homes, college graduates, and seniors. EDA Member Jergen’s asked if the local businesses would share data of how many of their workers live in Cottage Grove. EDA Executive Director stated 15-20% of Business Park employees lived in Cottage Grove, St Paul Park and Newport. Another 15-20% lived in Woodbury, Hastings, So St Paul and W St Paul. There are very little workers west of the Mississippi River and east of the St Croix River. C. Southeast Industrial Park Presentation (Verbal Presentation) EDA Executive Director Schroeder introduced Scott Tankenoff Managing Partner of Hillcrest Development. Mr Tankenoff discussed his excitement over developing a great piece of land that has great infrastructure, a rail spur, and has the potential to attract industrial opportunities that are not currently in Cottage Grove. He discussed his excitement about acquiring a team of experts in the following areas: development, engineering, marketing, general contracting and design. He has found all of these with his current development partnership and looks forward to a promising end user for the space, ultimately bringing business, a larger tax base and jobs to the community. Mr Tankenoff introduced Senior Vice President Peter Carlson from Opus. Mr Carlson discussed Opus’s successful long relationships with local and national team members. He also stated that Opus is very experienced in master plan development where they assure their clients certainty, trust and speed of delivery. Their corporate clients find value in combined collaboration between the developers and the community, the City and its development partners. Mr Carlson introduced Phil Cattanach who is the Lead Developer for Opus. Mr Cattanach discussed the history of the successful relationships between the development team. The market has to be aligned with what they want to deliver at the property. Opus, in their approach, offers a speed to market approach. Mr Cattanach views the close proximity to the Metro Area, the large space available to court large end users, and the rail service as being the major positive selling points of the property. Mr Cattanach introduced Andy Heieie, Land Sales Associate, Colliers Int’l, and Eric Rossbach, Vice President, Colliers Int’l. Mr Heieie stated Colliers is the third largest brokerage firm in the US. He has had a history with and encouraged Scott Tankenoff to take advantage of all the assists the property has to offer. Economic Development Authority - Minutes April 14, 2015 Page 4 Mr Heieie introduced Eric Rossbach stating Mr Rossbach specializes in build to suit projects and has previously had a number of successful projects. Mr Rossbach discussed the materials he provided regarding the success of the Valley Park Business Center in Shakopee. Mr Rossbach envisions a high image project, bulk distribution driven by the rail, large manufacturers, and two to four buildings built on the Southeast Industrial Park site. They are actively pursuing a marketing campaign for the site. EDA Member Carter asked if there were any early interest in the site. Mr Rossbach stated there have been in discussions with people but nothing solidified because of the enormity of the process for the end user. EDA Member Jurgens asked if the recent business expansions benefited the Southeast Industrial Park project. Mr Rossbach stated it is a great benefit because it adds to the synergy and will add to their success. EDA Member Jurgens confirmed that the buildings were build to suit and not spec buildings. He also asked if the end user would be industrial in nature or a campus type feel, marketing to white collar end users. Mr Rossbach stated they will market to both types of users but will most likely be an industrial user. EDA Member Cole inquired as to the users in the Valley Park Business Center in Shakopee. Mr Rossbach stated they are mainly manufacturing and distribution end users. EDA Member Jurgens asked if there was anything further that Staff can do to assist in the process. Mr Rossbach stated the nothing additional is needed from staff at this point but continued assistance. EDA Member Dennis asked for a forecast with regard to the filing of the space. Mr Rossback stated is driven by the market but will be a long term project. He hopes it will be in the next 12-18 months. EDA Member Jurgens asked EDA Executive Director Schroeder the impact of the property tax impact. ED Executive Director Schroeder stated he would provide information to EDA Member Jurgens. D. Calendar The EDA Members were given the upcoming meeting and events calendar that was included in the EDA Packet. E. EDA Comments EDA Member Jurgens asked what the next steps would be in relation to the Market Analysis. ED Director Parr stated that staff is currently using the Market Study to secure ICSC appointments. EDA Executive Director Schroeder suggested an enhancement to the Study once the 2012 data becomes available at the end of the summer. EDA Member Jurgens referenced the meeting where the Study was examined in detail. He wants to know if we are actively pursuing businesses to Cottage Grove that are not found in Woodbury as he thought was suggested. Economic Development Authority - Minutes April 14, 2015 Page 5 EDA Member Dennis discussed reinvigorating the Shop Local campaign to spur business interest within the community. He also discussed The Rule of 10 that he is developing. The Rule of 10 would consist of people pledging to spend an additional 10% above what they currently spend now in Cottage Grove. He suggests that 10% of the instances when residents want to leave Cottage Grove that they actually stay in town to get their retail needs met. He would like the end pledge amount to eventually have people spending 35% more in Cottage Grove. EDA Member Cole stated that the Chamber has historically tried to spur business in the community by working together with local businesses to stimulate business in the community. EDA Member Dennis stated collaboration always wins. ED Director Parr announced the kickoff of the Shop Cottage Grove campaign survey and asked everyone to take the survey. EDA Member Dennis acknowledged all the hard work taking place behind the scenes to address specific shopping and vacancies in town. VI. AJOURN EDA Member Carter motioned to adjourn the meeting. Seconded by EDA Member Celkis, all present were in favor. The meeting adjourned at 8:35 a.m. Respectfully Submitted, Alicia McMonigal Economic Development Assistant