HomeMy WebLinkAbout2016-05-10 Approved Minutes
CITY OF COTTAGE GROVE
E
CONOMIC
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EVELOPMENT
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UTHORITY
MINUTES
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May 10, 2016
Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was
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held at Business Enterprise Center 7516 80 Street South Cottage Grove, Minnesota 55016 on the 10th
day of May, 2016.
CALL TO ORDER
The meeting was called to order at 7:33 a.m. by EDA President Bailey.
ROLL CALL
Members Present:
Myron Bailey, EDA President
James Celkis, EDA Member
Trent Cole, EDA Member
Steve Dennis, EDA Vice President
Tony Jurgens, EDA Treasurer
Ramona Westerberg, EDA Member
Eric Thiewes, EDA Member
Members Absent:
None
Staff Present:
Charlene Stevens, EDA Executive Director
Jennifer Levitt, Community Development Director/City Engineer
Christine Costello, Economic Development Director
Robin Roland, Finance Director
Matt Wolf, Economic Development Assistant
APPROVAL OF MINUTES
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3.1EDA Vice President Dennis motioned to approve the April 12, 2016 EDA Meeting Minutes.
EDA Member Westerberg seconded. Motion passed unanimously (6-to-0 vote).
EDA Member Celkis entered meeting at 7:34 and was present for the remainder of the meeting.
BUSINESS ITEMS
4.1 Business Inquiry/Community Development Update
Economic Development Director Costello gave an update on the business development inquiries in the
City of Cottage Grove over the month of April. Community Development Director/City Engineer Levitt
discussed the development update items that were presented in the packet.
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May 10, 2016
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EDA President Bailey stated that the Hy-Vee contractor trailer was moved from the front of the building
to the back. EDA Member Jurgens asked if any local contractors were going to be used in construction
of the Hy-Vee building. Community Development Director/City Engineer Levitt stated that Hy-Vee’s
Construction packages are out for bid so potentially local contractors could be awarded the bids.
EDA Member Jurgens inquired if the future Bus Rapid Transit (BRT) stations were going to need the
same level of parking as the current Park and Ride site. Community Development Director/City Engineer
Levitt stated they were envisioning a 4 to 5 level parking deck and not a large surface lot. EDA Member
Jurgens asked if one of the options for the BRT station was the site by Applebee’s and Community
Development Director/City Engineer Levitt stated that was correct; it would be right in front of the
alternative High School entrance and the road would have to be realigned. EDA Member Jurgens asked
if that building or the parking lot would have to be demolished to accommodate the BRT parking structure.
Community Development Director/City Engineer Levitt said that the building would not be demolished
and the current Park and Ride on West Point Douglas would be turned into a parking ramp. EDA Member
Jurgens commented he is also on the Washington County Library Board, and that in the strategic plan
Washington County is in the planning process to look at partnerships with cities and that the district center
should be kept in mind as a partnership opportunity. EDA Member Thiewes asked where the parking
ramp for the BRT station would be located by the future Hy-Vee location. Community Development
Director/City Engineer Levitt stated that BRT station at Hy-Vee would not have a parking ramp; City is
anticipating a parking ramp at the Jamaica station location.
EDA Member Jurgens asked Community Development Director/City Engineer Levitt to update the EDA
about the Presbyterian Homes project. Community Development Director/City Engineer Levitt gave an
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update to the Presbyterian Homes project at the corner of 80 Street and Hadley Avenue S.
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EDA Member Jurgens asked if Jamaica north of 70 Street was paved. Community Development
Director/City Engineer Levitt said it was completed.
EDA Member Jurgens asked if in the six legged roundabout (CSH19 Improvement) plans, there were
any plans for a roundabout on the other side of Highway 19. Community Development Director/City
Engineer Levitt stated at this time that is not part of the scope of the project. EDA Member Jurgens
stated his concern was traffic coming east after completing shifts at 3M there is an influx of traffic travelling
at excessive speeds and whether there were ways to slow the traffic. Community Development
Director/City Engineer Levitt said she would talk to Public Safety and see what options are available.
4.2 Consideration of Second Amendment to Purchase Agreement for Gardenworld
Community Development Director/City Engineer Levitt stated Gardenworld would not close on their
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financing until May 18 so the EDA needs an extension to the current purchase agreement.
EDA Member Thiewes motioned to approve the Second Amendment to Purchase Agreement for
Gardenworld. EDA Member Jurgens seconded. Motion passed unanimously (7-to-0 vote).
4.3 Acceptance of DEED and Minnesota Viking Marketing
Economic Development Director Costello spoke about the desire for the City of Cottage Grove to increase
their marketing by promoting the City and the Business Park. To accomplish this Economic Development
Director Costello stated they wanted to take out a full page ad in the Department of Employment and
Economic Development (DEED) publication for 2017 at the price of $6,500. Additionally as this is the
first year of the new US Bank Stadium for the Minnesota Vikings Economic Development Director
Costello stated they would like to take out a quarter-page ad in the Minnesota Vikings Yearbook at the
cost of $3,000. EDA Member Jurgens stated he liked the idea of the Vikings Yearbook and only doing it
for one year. EDA Member Thiewes asked how our advertisement is going to be different as opposed to
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May 10, 2016
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last year. Economic Development Director Costello said she has reached out to a graphic artist at the
cost of $1,200 to help design a new ad. EDA member Thiewes asked how much traction we got from
the previous DEED publication. Community Development Director/City Engineer Levitt stated that the
City mailed it to all the brokers, used it on-line and the ad was a good conversation starter with potential
businesses. EDA President Baily asked if we should go bigger than a quarter sized ad in the Viking’s
Yearbook. EDA Executive Director Stevens recommended we only do a quarter-page as the amount of
marketing budgeted is limited for 2016 and doubling the cost on the Vikings Yearbook would use over
half of the marketing budget for 2016.
EDA Member Jurgens made a motion to approve the DEED and Minnesota Viking Marketing
expenditures. EDA Member Westerberg seconded. Motion passed unanimously (7-to-0 vote).
4.4 BEC Direction and Tour of Facility
Economic Development Director Costello gave a presentation on the Business Enterprise Center (BEC)
and its current concerns and challenges. At 8:25 a.m. the EDA went on a tour of the BEC. The EDA
returned to the BEC Training Room at 8:41 a.m. Economic Development Director Costello continued her
presentation on the concerns of BEC. Economic Development Director Costello concluded the
presentation by asking the EDA for their thoughts, concerns or questions about the future direction of the
BEC.
EDA Member Jurgens asked about the leases ending in 2018 and what would happen to them if we shut
down the BEC before 2018. Economic Development Director Costello said we would work them to find
a new location in the community and the lease did not require the EDA to buy out the remainder of the
lease. EDA Member Jurgens inquired about the solar panels that are on the roof of the BEC and what
the lease required. Finance Director Roland stated the agreement has an option to transfer the solar
panels to another City facility. Finance Director Roland said that the City has looked at the scenario and
doesn’t view it as a major issue. EDA Member Jurgens asked about a potential Public/Private partnership
for the building that was in the discussions previously, if there was anything still pending or potentially
developing in the future. Economic Development Director Costello stated there is currently nothing
planned or in development. Director Costello continued to state that the previous gentlemen who
approached the City is no longer in discussions with the City. EDA Member Thiewes asked if the City
does exit interviews with tenants that leave the BEC. Economic Development Director Costello stated
that there haven’t been exit interviews with past tenants, and no tenants have left since she has taken
over the position. There have only been two tenants who have left the facility in the life of BEC and one
went out of business. EDA Member Cole stated that in regards to moving the Chamber of Commerce
(Chamber) the biggest concern would be maintaining the Chambers relationship with Wakota CAER and
their need for training room space EDA Member Cole asked that if there is an ability to work with the
City to find a spot that has a large meeting space that would be ideal for the Chamber. EDA President
Bailey stated given the current situation he would not want to extend any leases with current tenants and
would like to try to find potential locations in Cottage Grove for the current tenants in the BEC. EDA
President Bailey also requested that staff look into how the City of Prior Lake handles their business
incubator leases with tenants and whether there is a penalty or payback provision if they didn’t locate in
the City of Prior Lake after graduating from the business. Economic Development Director said she
would look into that and determine if that was indeed the case in Prior Lake. EDA President Bailey asked
if all the tenants are up to date on their rent. Economic Development Director stated that not all tenants
are up to date on rent.
EDA Member Jurgens made a motion for staff to create an exit strategy to begin to wind down
operations of the Business Enterprise Center and establish a joint City Council/EDA Meeting in
June. EDA Vice President Dennis seconded. Motion passed unanimously (7-to-0 vote).
PUBLIC HEARING
Economic Development Authority – Minutes
May 10, 2016
Page 4 of 4
None
OTHER BUSINESS
6.1 Calendar
EDA Members viewed the various upcoming events listed on the calendar.
6.2 EDA Comments
None
6.3 Response to Previous EDA Comments
None
AJOURN
EDA Vice President Dennis made a motion to adjourn. EDA Member Celkis seconded. The meeting
adjourned at 9:09 a.m. (7-to-0 vote).
Respectfully Submitted,
Matt Wolf
Economic Development Assistant