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HomeMy WebLinkAbout2016-10-11 PACKET 03.01. CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES th September 13, 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 13th day of September, 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 Ramona Westerberg, 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 Others Present: Chris Eng, Washington County CDA Economic Development Director LaRae Mills, City of Cottage Grove City Council Candidate Julie Eddington, President Kennedy & Graven Patrick Ostrom, Development Associate Dominium Apartments APPROVAL OF MINUTES th 3.1EDA Vice President Dennis motioned to approve the August 8, 2016 EDA Meeting Minutes. EDA Member Celkis seconded. Motion passed unanimously (6-to-0 vote). At 7:35 EDA Member Jurgens joins meeting BUSINESS ITEMS 4.1 Business Inquiry/Community Development Update Economic Development Authority – Minutes th September 13, 2016 Page 2 of 4 Economic Development Director Costello gave an update on the projects that are in development around the City of Cottage Grove. EDA Vice President Dennis asked the staff what is the current percentage of available occupancy or for the vacancy rate in Cottage Grove. Economic Development Director Costello stated that she does not have the exact percentage but will have the data prepared for next EDA Meeting. 4.2 Chris Eng, Washington County Economic Development Director Introduction Washington County Community Development Agency (CDA) Economic Development Director Chris Eng gave an overview of Economic Development in Washington County and the newly created Economic Development plan. CDA Director Eng stated that goals that came out of the plan were: #1. A better county-wide marketing or promotions program, #2. A county-wide façade improvement program or building improvement program, #3. Enter into the Open to Business Program, #4. Labor studies and market studies for Washington County #5. A predevelopment seed fund grant program EDA Vice President asked if CDA Economic Development Director Eng had any theories as to why the County is seeing a decrease in property assessment from the Commercial and Industrial sectors. CDA Director Eng responded that he doesn’t necessarily believe that were seeing a loss in business but rather that residential growth in the county is so rapid that it is becoming a larger and larger slice of the pie. EDA Member Thiewes asked in comparison to other counties in the metro if Washington County had about the same amount of commercial/industrial loss. CDA Director Eng stated that compared the suburban or rural counties that Washington County is about the same but the more urban counties have had a lower rate of loss. EDA Member Jurgens inquired that with the change from an HRA model to the new CDA model how that is being funded and if there would be any increase in taxes. CDA Economic Development Director Eng stated that the CDA does have levying authority and about $200,000 of the levying authority goes to Economic Development and the CDA is not looking to increase that rate. 4.3 Dominium – Legends of Cottage Grove Economic Development Director Costello gave a brief overview of the current state of the project and then turned it over Julie Eddington from Kennedy & Graven to explain motions and answer questions. Kennedy & Graven President Eddington provided further details on the direction of the project and what the EDA would be voting in the resolutions. EDA Member Jurgens asked what Ms. Eddington sees as the biggest risk to the EDA. Kennedy & Graven President Eddington responded that the risk is fairly low and that the financers of the project have a lot of interest in seeing the project completed and successful. EDA President asked Dominium Development Associate Ostrom what is the timing of the project. Dominium Development Associate Ostrom stated they would be closing on the project the last week in September with construction starting in October and wrapping up construction in December 2017 or January 2018. EDA Vice President Dennis motioned to approve the sale of, and providing the form, terms, covenants and directions for the issuance of its taxable tax increment revenue note (Cottage Economic Development Authority – Minutes th September 13, 2016 Page 3 of 4 Grove leased Housing Associates I Senior Housing Project); and approving construction plans with respect to the project. EDA Member Westerberg seconded. Motion passed unanimously (7- to-0 vote). EDA Member Thiewes motioned to approve agreements related to tax increment financing District No. 1-17 (Dominium) and the Legends of Cottage Grove development in the City of Cottage Grove. 4.4 Letter of Support to Xcel Energy Certified Site Program Economic Development Director Costello gave a brief overview of the Xcel Certified Site Program. EDA Member Cole motioned to approve the Letter of Support for the Xcel Energy Certified Site Program. PUBLIC HEARING None OTHER BUSINESS 6.1 Calendar EDA Members viewed the various upcoming events listed on the calendar. 6.2 EDA Comments EDA Member Cole reminded everyone that the Cottage Grove Chamber of Commerce banquet is th September 29 at John P. Furber Farms. th EDA Member Jurgens invited everyone to the Fire Departments Open House on October 15 and the th Oktoberfest celebration at Hope Glen Farms on October 16. 6.3 Response to Previous EDA Comments 6.3a Property Tax Commercial Comparison vs. Residential (historic comp) Finance Director Roland prepared chart comparing residential property tax vs. commercial/industrial property tax and present the data to the EDA. 6.3b ICSC Attendance Economic Development Director Costello presented on previous attendance to the ICSC and the cost per year. AJOURN EDA Vice President made a motion to adjourn. EDA Member Jurgens seconded. The meeting adjourned at 8:30 a.m. (7-to-0 vote). Economic Development Authority – Minutes th September 13, 2016 Page 4 of 4 Respectfully Submitted, Matt Wolf Economic Development Assistant