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HomeMy WebLinkAbout2016-07-12 PACKET 03.01. CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES June14, 2016 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 16th day of July, 2016. CALL TO ORDER The meeting was called to order at 7:31 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 Eric Thiewes, EDA Member Members Absent: Ramona Westerberg, EDA Member 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 Others Present: Ron Batty, TIF Counsel with Kennedy and Graven Jeff Huggett, Vice President and Project Partner, Dominium APPROVAL OF MINUTES 3.1EDA Vice President Dennis motioned to approve the May 10, 2016 EDA Meeting Minutes. EDA Member Celkis seconded. Motion passed unanimously (6-to-0 vote). 3.2 EDA Member Jurgens motioned to approve the May 18, 2016 Special EDA Meeting Minutes. EDA Member Cole seconded. Motion passed unanimously (6-to-0 vote). Economic Development Authority – Minutes May 10, 2016 Page 2 of 4 BUSINESS ITEMS 4.1 Business Inquiry/Community Development Update Community Development Director/City Engineer Levitt gave an update on the projects that are in development around the City of Cottage Grove. EDA Member Jurgens asked about the future Middle School project, if the City would be constructing the ball fields or if the ball fields would be school property. Community Development Director/City Engineer Levitt replied that the site at this time is open to reconfiguration to the amount of soccer/baseball fields located on the site. Community Development Director/City Engineer Levitt said that at some point in the future the fields would be rededicated back to the City of Cottage Grove but currently the school district is buying all the land from the Bailey’s as part of their purchase agreement. 4.2 Consideration of approval of the Development Agreement with Dominium Community Development Director/City Engineer Levitt gave a presentation on the overview of the Dominium project. Community Development Director/City Engineer Levitt stated that Dominium is requesting a change in the agreement to go from 100% affordable senior to 80% affordable senior housing. Community Development Director/City Engineer Levitt stated that “senior” meant the rental units are occupied by at least one person who is at least 55 years of age at the time of initial occupancy. The remaining 20% of occupancy would not be age restricted, but still considered affordable housing. EDA Member Thiewes inquired with the bonding bill not going to special session for the Minnesota State Legislature if the deal was over due to those circumstances. Dominium Project Partner Jeff Huggett replied that this project is not associated with any bonding bill with the State Legislature. Dominium Project Partner Jeff Huggett stated that the project does have bonding issues but that is due to state volume cap requirements and that is why Dominium is requesting that 20% of the rental units be non- age restrictive. Dominium Project Partner Jeff Huggett said Dominium believes that change in the agreement will make the project more competitive and able to get the bonding Dominium needs to get the project financed. EDA Vice President Dennis asked if Dominium currently has any housing rental properties that currently have a 20% non-age restrictive model. Dominium Project Partner Jeff Huggett replied that Dominium owns and operates many different housing units across 25 different states. Dominium Project Partner Jeff Huggett stated that even with 20% of the rental units being non-age restrictive Dominium will still be marketing these units exclusively to seniors. EDA President Bailey asked for clarification on whether or not Dominium has other projects in Minnesota that has the 80/20 age requirement. Dominium Project Partner Jeff Huggett replied that the 80/20 is a new requirement. Dominium Project Partner Jeff Huggett stated that if Dominium wants to get the bonding done this year for the project Dominium needs to have that requirement. Dominium Project Partner Jeff Huggett stated that without the requirement the project would not be able to move forward. EDA President Bailey inquired if there was any minimum age restriction and how Dominium plans on dealing with the possibility of young families living next to seniors. Dominium Project Partner Jeff Huggett stated Dominium does not see that being an issue as Dominium is building amenities and marketing towards seniors. Dominium Project Partner Jeff Huggett stated the 80/20 age requirement was more of an issue of financing the project. Economic Development Authority – Minutes May 10, 2016 Page 3 of 4 EDA Member Jurgens asked what the status was of the home that was on future Dominium site and its historical significance. Community Development Director/City Engineer Levitt replied that the City is working with Preservation Alliance of Minnesota and they are looking for a site to relocate the house. EDA President Baily asked if Community Development Director/City Engineer Levitt could give an update on a timeline of the project as the timeline is now changing due the financing issues. Community Development Director/City Engineer Levitt said that due to the way the project is being financed the st project would need be started by June 2017 and be completed by December, 31 2018. Community Development Director/City Engineer Levitt stated Dominium’s completion date does not change but due to their financing challenges it does push back Dominium’s start date. EDA Member Jurgens made a motion to recommend approval of the Developer’s Agreement with Dominium, and authorize the City legal counsel to make any necessary language modifications to address the proposed building configuration from 100% affordable senior housing to 80% affordable senior housing/20% affordable non-age restricted housing. EDA Member Thiewes seconded. Motion passed on 5-to-1 vote. (Ayes: Bailey, Celkis, Cole, Jurgens and Thiewes Nays: Dennis) EDA Vice President Dennis stated he voted against the motion due to all the work that has gone into the project to this point to create 100% affordable senior housing. EDA Member Dennis stated that he is concerned to now be making 20% of the housing non-age restrictive and that it takes the project away from its original intentions. EDA Member Celkis made a motion to recommend approval for Dominium to provide proof of parking on the site plan due to the change in senior unit count configuration. The developer will be required to provide all appropriate landscape, payment of tree mitigation and storm water management as per the requirements of the City Code. EDA Member Cole seconded. Motion passed unanimously. (6-to-0 vote) PUBLIC HEARING None OTHER BUSINESS 6.1 Calendar EDA Members viewed the various upcoming events listed on the calendar. 6.2 EDA Comments EDA President Bailey reminded all that Strawberry Fest is being held this upcoming weekend and encouraged all to celebrate the community. EDA Vice President Dennis wanted to remind the community of the value of shopping local. EDA Member Celkis reminded the community that it is Flag Day and to take a moment to think about what that means for this great Country. 6.3 Response to Previous EDA Comments None AJOURN Economic Development Authority – Minutes May 10, 2016 Page 4 of 4 EDA Member Jurgens made a motion to adjourn. EDA Vice President Dennis seconded. The meeting adjourned at 8:02 a.m. (6-to-0 vote). Respectfully Submitted, Matt Wolf Economic Development Assistant