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HomeMy WebLinkAbout2015-05-28 Approved Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES May 28, 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 28th day of May, 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 James Celkis, EDA Member Steve Dennis, EDA Vice President Member Tony Jurgens, EDA Member Ramona Westerberg, EDA Treasurer Members Absent: Trent Cole, EDA Member (Excused) Staff Present: Ryan Schroeder, EDA Executive Director Danette Parr, Economic Development Director Robin Roland, Finance Director Alicia McMonigal, Economic Development Assistant Others Present: Emily Buss, South Washington County Bulletin III. APPROVAL OF MINUTES EDA Treasurer Westerberg motioned to approve the May 12, 2015 EDA Meeting Minutes, and EDA Member Carter seconded, all present were in favor. IV. BUSINESS ITEMS A. Consideration of Home Depot Purchase Agreement EDA Executive Director Schroeder discussed the Home Depot Purchase Agreement that was presented in the packet materials. He stated the intention was never to have City be developers of the property. The property would be remarketed and sold for the same or similar price, $2.5 million, which is the land price. He further stated the Purchase Agreement has a purchase to close in four months clause. He explained if the EDA approves the Purchase Agreement, it will then go before the City Council for approval. If the EDA and the City Council do not have a deal and do not proceed to closing on the Economic Development Authority - Minutes May 28, 2015 Page 2 property then the earnest money, $50,000, will be forfeited. EDA Executive Director Schroeder opined that in the world of commercial real estate, this is a very fair earnest amount and allows the City the opportunity to have four months to put a deal together. He further commented that there are a growing number of developers that are interested in the property. EDA Member Jurgens clarified the point person on the deal as being ED Director Parr. He also asked about item number 13 in the Developer’s Agreement. EDA Executive Director Schroeder stated that Home Depot wanted to sell the property to an entity that not only had an interest in buying the property but also had the ability to close on the property. EDA Member Jurgens asked if there would be increased negotiating power because of the restrictions and covenants section. EDA Executive Director Schroeder stated the RCA, exhibit C, has a 15 year life and impacts only the Home Depot property. The REA cannot be amended until the City has ownership of the property. The intent would be working towards amending the REA prior to the City reselling the property. EDA Carter asked if the four month period would be a sufficient amount of time to close on the property. EDA Executive Director Schroeder stated four months is sufficient. EDA VP Dennis made a motion to approve the Purchase Agreement of the property at 7210 East Point Douglas Rd South contingent upon City Attorney review and approval. EDA Treasurer Westerberg seconded the motion, all present were in favor. V. AJOURN EDA Member Jurgens motioned to adjourn the meeting. Seconded by EDA Member Carter, all present were in favor. The meeting adjourned approximately 7:50 a.m. Respectfully Submitted, Alicia McMonigal Economic Development Assistant