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HomeMy WebLinkAbout2015-03-10 PACKET 03.Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES February 10, 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 10th day of February, 2015. I. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Bailey. II. ROLL CALL Members Present: Myron Bailey, EDA President Jeff Carter, EDA Member Trent Cole, EDA Member Steve Dennis, EDA Member Tony Jurgens, EDA Member Ramona Westerberg, EDA Member Members Late: James Celkis, 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 III. APPROVAL OF MINUTES EDA Member Westerberg motioned to approve the December 9, 2014 EDA Meeting Minutes, and EDA Member Jurgens seconded, all present were in favor. EDA Executive Director Schroeder asked to add agenda item 4.E. request to City Council to establish a TIF district. EDA Member Jurgens motioned to approve the request and was seconded by EDA Member Dennis, all present were in favor. IV. BUSINESS ITEMS A. Development Update / BR&E Update EDA Executive Director Schroeder reviewed the development update materials that were included in the EDA packet. EDA Member Jurgens asked if the scope of the plans at Summerhill have changed. EDA Executive Director Schroeder stated that the original footprint was originally approved for 86 units Economic Development Authority - Minutes February 10, 2015 Page 2 but because of changes dictated by the market, the second and third floor independent units are larger and the total units will be 84. EDA Executive Director Schroeder mentioned that residential remodeling activity during the recession (2007-2010) was at an all-time high with a total of 15.5 million for those four years. The four years prior to and after the recession was about 10 million. The remodeling activity in 2014 was very strong totaling about 14 million. B. Historic Preservation CUP Economic Director Parr reviewed the HPCUP material that was included in the EDA packet. She addressed the three most common schools of thought: 1. Some believe that they should be allowed to exist as is. 2. Some believe it is a commercial venture and should be treated as such, not giving any advantages because it has historic place status. 3. Others believe there should there be a trigger/threshold when commercial regulations apply. Economic Development Director Parr stated that the most predominant standards typically identified are: 1. Parking. Most of these places are former farmsteads that have been subdivided. 2. Access. Many don’t have paved areas. Consumers would drive in on gravel access areas and park in gravel/grassed areas. 3. Storm water. Most businesses can’t meet the current storm water requirements that are in place. 4. Curb and Gutter. These would be as related to supporting storm water. EDA Member Jurgens said that he would be in favor of allowing these venues as is so as not to compromise the integrity of the property. EDA Member Dennis asked if we have surveyed other municipalities. EDA President Bailey stated it would be helpful to know what other communities are doing about conditional use permits for historic sites. EDA Director Schroeder stated that there are not a lot of cities that have historical use permits. It is either a conditional use permit or it isn’t. EDA President Bailey recapped, the entity may be used as a commercial entity but when considered historic in nature there is a much higher standard regarding historic preservation standards. He would rather that if they are keeping with the historic nature of the building to keep forging ahead has we have in the past because can be a huge financial investment for the owners to maintain the historic nature of the building. He would like the tipping point to be if there was a major renovation not keeping with the original standards. He would also like to use materials to enhance their property in relation to storm water runoff as opposed to curb and gutter. Another possible tipping point might be if storm water runoff becomes an issue it would have to be addressed. Economic Development Director Parr stated the City of Eden Prairie may use different language, but it is basically a CUP. They have a former farmstead that has been converted into a Dunn Bros Coffee – it is similar to infrastructure based with the parking and ponding, but they haven’t compromised the historic integrity of the structure. Economic Development Authority - Minutes February 10, 2015 Page 3 EDA Member Cole asked if there were any liability issues related to the permitting systems if they are not up to commercial codes. EDA Director Schroeder stated that the interior spaces have to be fire code and health safety compliant. EDA Director Schroeder summarized that it appeared the consensus was to continuing allowing them to operate as they have been operating except in the case of an environmental concern like storm water runoff. C. Work Plan Discussion Economic Development Director Parr discussed the economic development work plan that was included in the EDA packet. EDA Member Carter stated he believes that the Business Park should be a focus because job creation would drive more retail. EDA Member Jurgens agreed and suggested having a tour of the business park once or twice a year with the EDA and the City Council so members can get an overview of the business park entities and help current business park entities with retention and helping those businesses grow. EDA President Bailey concurred to keep focus on the business park by creating jobs and expanding our tax base. He also stated that council suggested three other additional areas of focus. The first being the redevelopment of the Home Depot and Rainbow sites. The second is the belief of some that the EDA has control over getting what we want - not getting what shows up. The market is what the market is. Unless there is a public subsidy, we do not have control over what or who comes to town. If a company sees a need here and the community supports that need that business will come no matter what individual’s thoughts or beliefs are. The EDA does not have the control to turn business away or to get desired businesses here. We try to attract certain end users but that doesn’t mean they will come. The third is that the Council also was looking at a different type of lifestyle housing and different type of senior opportunities. EDA President Bailey also stated that at the Council’s retreat they spoke on the image of W Pt Douglas and the gateway area th from 80 to Hwy 19. EDA Director Schroeder stated that there will likely be an all commission meeting in March and at that meeting will go over the goals that were discussed at the strategic planning meeting to discuss all the goals and the direction the Council would like to focus on this year. D. BEC Solar Purchase Agreement EDA Executive Director Schroeder discussed the BEC power purchase agreement that was included in the EDA packet. EDA Member Carter asked what the useful life of the asset would be. EDA Executive Director answered 15 to 20 years. EDA Member Carter asked if we would re-up the asset. EDA Executive Director Schroeder stated that it would depend on the quality of the roof at that time and the roof is over five years old. EDA Member Jurgens asked if the roof needs repair prior to the removal of solar panels who would be responsible for those costs. EDA Executive Director Schroeder stated that cost would be wrapped into the O&M costs. We would re-amortize the savings and that would reduce the projected savings. EDA Member Dennis motioned to approve the request and was seconded by EDA Member Carter, all present were in favor. E. American Logistics, TIF District Creation EDA Executive Director Schroeder discussed the TIF District Creation (1-15) related to American Logistics that was provided by EDA Executive Director Schroeder. EDA Economic Development Authority - Minutes February 10, 2015 Page 4 President Bailey asked what the job creation number would be. EDA Executive Director reported, if the American Logistics currently has 155 employees and if they receive the job grant from DEED it would expand their employee base by 30%. EDA Member Jurgens asked if the 2026 expiration of the district was regulatory. EDA Executive Director stated it was statutory but we are able to retire it early but would not be able to extend it without special legislation and this district creation is only for this project. EDA Member Jurgens made a motion to adopt the resolution for the potential TIF project for an expansion to an existing business within the business park and to call for a public hearing and was seconded by EDA Member Westerberg, all present were in favor. V. MISCELLANEOUS BUSINESS ITMES A. Solicitation of Market Interest for Housing EDA Executive Director Schroeder discussed the Solicitation of Market Interest for Housing materials that were included in the EDA packet. He stated that since making contact with property owners, two asked to be removed from the solicitation: the Goebel and Jensen properties. EDA Member Carter asked if we’ve had success in the past with RFP requests. EDA Executive Director Schroeder stated that Presbyterian Homes was a result of an RFP. B. Miscellaneous Packet Material Economic Development Director Parr discussed the miscellaneous packet materials included in the EDA packet. EDA Executive Director Schroeder recapped for the new EDA members that the goal over a five year period of time for the BEC project was to break even because property taxes would have to be paid if there was a profit made. We also want to keep rents low to support job growth. The low rent is basically to cover the CAM charges. Economic Development Director Parr stated that CAMs are the basic costs to run the building. EDA President Bailey stated that the hope behind the BEC is the ground floor for new and innovative business to come and that they will eventually grow into our business park or other office space in the City. Economic Development Director Parr stated that we could have the BEC rented many times over if it were only about low cost office space, but the goal is about creating quality jobs and growing business that have the potential to relocate in Cottage Grove. She explained that she has had people come to her that were not appropriate for the facility and in some cases, she has been able to refer them to resources to get their needs met and potentially ready for the BEC in the future. She has been able to refer others that weren’t appropriate to the BEC to other vacancies in town. VI. CALENDAR The EDA members were given the upcoming meeting and events calendar that was included in the EDA Packet. EDA Member Jurgens stated he would like an update on all tenants of the BEC. EDA Director Parr suggested a BEC open house in the spring so the EDA can meet with the tenants. EDA Member Jurgens stated that he was aware that the funding for the golf course changed. Because of that change, did the EDA’s role with the golf course change? EDA Executive Schroeder stated the golf course is an operating fund like the ice arena. There were two loans against it. One loan was forgiven the other still exists and that loan still exists and is from the trust fund so the EDA has an interest in the golf course. Member Jurgens stated that he would like to explore the benefits of joining Greater MSP. Executive Director Schroeder stated Washington County is a Economic Development Authority - Minutes February 10, 2015 Page 5 member and by their membership we are able to take advantage of their membership. Woodbury is a separate member as well. VII. AJOURN EDA Member Jurgens motioned to adjourn the meeting. Seconded by EDA Member Celkis, all present were in favor. The meeting adjourned at 8:30 a.m. Respectfully Submitted, Alicia McMonigal Economic Development Assistant