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HomeMy WebLinkAbout2018-03-13 COMPLETE PACKET CITY OF COTTAGE GROVE Economic Development Authority AGENDA March 13, 2018, 7:30 A.M. Cottage Grove City Hall, Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3.1 February 13, 2018 EDA Minutes 4. Business Items 4.1 Economic Development Update/Business Inquiry 4.2 Request the City Council call for a public hearing for the creation of a TIF district for Modern Automotive Performance 4.3 My Future Cottage Grove Retail & Restaurant Presentation 5. Public Hearings 6. Other Business 6.1 EDA Calendar 6.2 EDA Comments 6.3 Response to Previous EDA Comments 7. Workshop 8. Adjournment *The next EDA Meeting will be held on Tuesday, April 10, 2018, at 7:30 AM CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES February 13, 2018 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was th held at Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove, Minnesota 55016 on the 13 day of February, 2018. 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 Wayne Butt, EDA Member Steve Dennis, EDA Vice President Eric Thiewes, EDA Member Ramona Westerberg, EDA Member Members Absent: Chris Carey, EDA Member Dan Myers, 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 Specialist Others Present: Mike Nelson, Director of Land Development, Habitat for Humanity Dan Carey, Vice President of Marketing, Modern Automotive Performance APPROVAL OF MINUTES 3.1EDA Vice President Dennis motioned to approve the December 13, 2017 EDA Meeting Minutes. EDA Member Thiewes seconded. Motion passed unanimously (4-to-0 vote) BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry Economic Development Authority – Minutes th February 13, 2018 Page 2 of 3 Economic Development Specialist Wolf gave an update on the projects that are in development around the City of Cottage Grove. 4.2 Consideration of approval of a contract for residential development with Twin Cities Habitat th for Humanity for 6541 85 Street South Economic Development Director Costello presented the Habitat for Humanity project that will occur at th the old city owned municipal pool at 6541 85 Avenue South. EDA Member Butt asked if it was possible to have local companies to help on the build. Habitat for Humanity Director of Land Development Mike Nelson responded that yes they are working with a number church groups that are interested in helping and have had other projects in Cottage Grove in the past so they have a number of resources at their disposal. EDA Vice President Dennis motioned to approve the contract for residential development for 6541 th 85 Street South Twin Cities Habitat for Humanity contingent upon approval from the Planning Commission and City Council for the plot and amendment to the Comprehensive Plan. EDA Member Westerberg Seconded. Motion passed unanimously (4-to-0, EDA Member Thiewes recused himself due to his work with Habitat for Humanity). 4.3 Certification of Completion for Legends of Cottage Grove Economic Development Director Costello presented to the EDA that the Legends of Cottage Grove has fulfilled their agreed upon requirements for completion. EDA Member Thiewes asked for the total number of multi-family units being built in Cottage Grove. Economic Development Director Costello stated that with all developments occurring across Cottage Grove there are 200 plus multi-family units being built in Cottage Grove. EDA Vice President Dennis motioned to approve that the developer, Dominium has completed the minimum improvements in accordance with the Contract by executing the certificate of completion form. EDA Member Thiewes Seconded. Motion passed unanimously (5-to-0). 4.4 Resolutions of Support for the Job Creation Fund Application in Connection with Modern Automotive Performance. Economic Development Specialist Wolf presented the Modern Automotive Performance expansion and their application for assistance from the State of Minnesota Department of Employment and Economic Development Job Creation Fund. EDA Vice President Dennis motioned to recommend approval of a resolution to support Modern Automotive Performance in their application to the Department of Employment and Economic Development Job Creation Fund. EDA Member Thiewes Seconded. Motion passed unanimously (5-to-0) 4.5 Letter of Intent with Modern Automotive Performance Economic Development Specialist Wolf presented on the Modern Automotive Performance expansion and their request to purchase a 50’ strip of land to the north of their current parcel that is owned by the City of Cottage Grove Economic Development Authority. EDA Member Butt motioned to authorize the EDA Executive Director to execute the Letter of Intent (LOI) with Modern Automotive Performance for the purchase of 50’ of EDA owned land for a total Economic Development Authority – Minutes th February 13, 2018 Page 3 of 3 of 21,104 square feet along the southern boundary of 9700 Hemingway Avenue. Seconded by EDA Member Westerberg. Motion passed unanimously (5-to-0). 4.6 City of Cottage Grove Internet Survey Economic Development Specialist Wolf gave a presentation on the City of Cottage Grove Internet Survey that occurred in October through November 2017. EDA President Bailey inquired about any other gaps of internet service that were in the City similar to th 95 Street. Economic Development Specialist Wolf stated that there was a similar issue along West Point Douglas and the City was in talks with Comcast on addressing the issue for future development. EDA Member Westerberg asked what other internet service providers were available in the City of Cottage Grove. Economic Development Specialist replied that the only true internet service providers were Comcast and Century Link, the others were either mobile phone providers or satellite. PUBLIC HEARING None OTHER BUSINESS 6.1 Calendar The EDA looked over the upcoming events that were occurring on the calendar. 6.2 EDA Comments EDA President Bailey reminded everyone of the State of the City Address that was Wednesday, February 7 from 6:30 pm. to 7 pm. 6.3 Response to Previous EDA Comments None WORKSHOP 7.1 None AJOURN EDA Member Butt made a motion to adjourn. EDA Member Thiewes seconded. The meeting adjourned at 8:15 a.m. (5-to-0 vote) Respectfully Submitted, Matt Wolf Economic Development Specialist Development Inquiry To: Honorable Mayor Bailey and EDA Members From: Christine Costello, Economic Development Director Date: March 6, 2018 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action Community Meeting, March My Future Cottage Grove presentation for one of the seven 15, 2018 project recommendations on retail and restaurants. A background on the current retail climate was provided as well as what national tenants are looking for in retail space. The next meeting will be a roundtable discussion with a national and local restaurant owner. County Meeting, February Economic Development Director Costello attended the 20, 2018 Washington County CDA Board meeting for Twin Cities Habitat for Humanity application to the County’s GROW fund for the redevelopment of the former municipal pool site. Land Owner meeting, Met with a land owner located in the Harkness Small Area February 23, 2018 who is potentially interested in selling and wanted to ask further information on the study conducted for the area. Proposed Development Met with a potential developer interested in workforce multi- Meeting, February 26, 2018 family housing in the Harkness Small Area. Breakfast Meeting, February A meeting was held for the businesses at 70th Street and 28, 2018 Hinton Avenue for the Summer 2019 construction of a roundabout at 70th Street (County Road 22) and Hinton Avenue (County Road 13). At the meeting the project history was reviewed, the proposed detour construction solutions were discussed and the group concluded they preferred partial closure “B”, and the preferred communication method businesses would like to receive on the project. Business Meeting, February Community Development and Washington County staff met 28, 2018 with the owners of Resorts and Lodges (a BR&E interviewed business) about their future business growth. Proposed Development Met with a potential developer interested in workforce multi- Meeting, March 1, 2018 family housing at the former Majestic Ballroom site. TO: Economic Development Authority FROM: Jennifer Levitt, Community Development Director/City Engineer Christine Costello, Economic Development Director DATE: March 7, 2018 RE: Development Update Building Permits Building Permit Statistics: Between February 1 and February 28, 2018, there were 144 building permits issued with a total valuation of $2,141,798, including 5 new single-family homes valued at $1,432,747. Commercial Permit Valuation Comparison By Month 2017-2018 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - JanFebMarAprMayJunJulAugSepOctNovDec 2018 Valuation2017 Valuation Economic Development Authority Development Update March 7, 2018 Page 2 of 17 Commercial/Industrial Construction Activity 120000000 100000000 80000000 60000000 40000000 20000000 0 yearpermitsvaluationLinear (permits) Residential Permits -New construction 1996 to 2018 350 300 250 200 150 100 50 0 199520002005201020152020 Economic Development Authority Development Update March 7, 2018 Page 3 of 17 Current Project Updates Norris Square: Rough-in inspections are continuing on wood construction three-story Independent Living building and on the Care Center, a metal constructed building. The Town Square is wood- framed construction addition to the existing building; the footings/foundation are now complete. Con- struction is progressing and building construction is on schedule to be complete by fall 2018. More pictures are shown at the end of this report. Northeast Elevation of Independent Living Northeast Elevation of Memory Care Center Building Well #12 Well House: The well house project includes construction of the pumping facility and began the first week of January. The pumping facility is scheduled to be substantially complete and operational by May 1, 2018. The anticipated final completion date is July 1, 2018. Oltman Middle School: The upper classrooms are in the final stages of construction, while lower classrooms, auditorium, and cafeteria areas are within the rough in stages. Plans for the fourth phase (PR #4) will be submitted soon. Pictures are included at the end of this update. Home Depot Building: An interior demolition permit application was received for the removal of the office area and garden center. North Star Sheets: A 161,100 square foot manufacturing warehouse that will be located at 7550 91st Street is being reviewed. The construction value is $8,753,587. Central Fire Station: Interior finishes are being completed. The project is on schedule for mid to late March occupancy. The project is on scheduled to be substantially complete by May. The exterior of the building is nearly complete and interior finish work is currently in progress. Remaining site work, Economic Development Authority Development Update March 7, 2018 Page 4 of 17 fine grading, and landscaping will continue when weather permits. A flashing beacon traffic system will be installed at the intersection of the Central Fire Station access drive and 80th Street and is scheduled operational by the end of May. West Elevation Northeast Elevation Entrance Lobby Training Room Overview West Bay Overview Kitchen Overview Truck Bay Exterior Economic Development Authority Development Update March 7, 2018 Page 5 of 17 Ravine Parkway The Ravine Parkway project is planned for construction in 2018 and 2019. This project includes the construction of two segments of Ravine Parkway: Jamaica Avenue to Keats Avenue in 2018 and Hinton Avenue to Idsen Avenue in 2019. On February 21, the Public Hearing for the project was held, and the project was ordered. On February 22, a meeting was held with private utility companies to review impacts related to the project. Plans & specifications are currently being pre- pared and will be submitted to MnDOT State Aid for review the week of March 12. The City is also working with Washington County, the South Washington Watershed District, Minnesota DNR, and Xcel Energy on various components of the project. Hadley Avenue Reconstruction This project planned for 2018 will include reconstructing Hadley Avenue from 65th Street to the Cottage Grove/Woodbury border to an urban section, including concrete curb and gutter, bitumi- nous pavement, street lighting, storm sewer, water main, and sanitary sewer. The water main and sanitary sewer constructed with this project would serve the proposed Eastbrooke Development. The Public Hearing for the project was held at the February 7 City Council meeting. Since that time, the City has been finalizing assessment waivers and easement agreements with residents along the corridor. Plans and specifications are currently being prepared for the project, with a private utility meeting anticipated for the week of March 5. Summers Landing 2nd Addition Street & Utility Improvements The Summers Landing 2nd Addition includes 91 lots for single family home, located near the in- tersection of Hadley Avenue and 95th Street. Fourteen bids for the Street & Utility Improvements Project were received on February 1. The project was awarded to Northwest Asphalt at the Feb- project was $2,240,000. Mass site grading is scheduled to begin in March, with utility installation beginning in May. The preconstruction meeting for mass site grading was held on February 28. Economic Development Authority Development Update March 7, 2018 Page 6 of 17 Mississippi Dunes Blvd looking north to 94th Street looking northwest to Summers Landing 2nd Addition Summers Landing 2nd Addition Grayson Meadow The Grayson Meadow development includes 45 lots for single family homes by D.R. Horton, and is located on an extension of Jeffery Avenue north of the Cayden Glen development. Single family home construction began in late August and has continued throughout winter. This development is filling out rapidly. Looking North Looking South Calarosa 1st Addition The Calarosa 1st Addition subdivision is located on property east of Pinecliff 5th Addition, south of Military Road, north of 65th Street, and west of Inwood Avenue. This development includes 12 quad style buildings with 48 units and 23 villa-style single family homes. The Developer placed Economic Development Authority Development Update March 7, 2018 Page 7 of 17 temporary asphalt pavement and temporary curbs along 63rd and 64th Streets within the devel- opment to allow for winter construction of buildings. The temporary roads will be removed and replaced with permanent roads in the spring of 2018. Construction of model homes for the Quad and Villa buildings is currently progressing. Quad Style Building Villa Style Unit Thompson Grove Country Club (Old Municipal Pool Site) Habitat for Humanity plans to build three single family homes on the former site of the Cottage Grove Municipal Pool. Demolition of the existing building is currently scheduled to be complete in early March with construction of the first single family home to begin by the fall of 2018. Thompson Grove Country Club Site Layout Single Family Home Elevations Pool Building Demolition Economic Development Authority Development Update March 7, 2018 Page 8 of 17 Villas of Hidden Valley The Villas of Hidden Valley project includes 19 single family lots located off of Harkness Avenue south of 70th Street. Construction began in the summer of 2017. To date, there are four houses completed. Model Home Model Home Planning Division Planning Commission Meeting February 15, 2018 The Planning Commission met on Thursday, February 15, which was the rescheduled date for the January Commission meeting that had to be canceled due to weather conditions. The planning applications from this meeting are summarized below: Aggregate Industries 2018 Mining Permit Case MP2018-010: Aggregate Industries North Central Region, Inc. has applied for their 2018 mining permit to continue their mining operations at 11250 Grey Cloud Trail South on Lower Grey Cloud Island. The Planning Commission unanimously recom- 2018 mining permit at the February 21, 2018 meeting. Legends of Cottage Grove Signage Case ICUP2018-003: Cottage Grove Leased Housing Associ- ates I, LLLP has applied for an interim conditional use permit to allow an 8-foot by 25-foot (200 square foot) banner sign for the Legends of Cottage Grove to be displayed on the exterior wall of their building Economic Development Authority Development Update March 7, 2018 Page 9 of 17 facing Highway 61 at 6999 East Point Douglas Road South. The Planning Commission, on a unani- mous vote, recommended approval of the application, and the City Council unanimously approved it at their February 21, 2018 meeting. Kingston Fields Cases ZA2017-034 and PP2017-035: D.R. Horton has applied for a zoning amend- ment to rezone 59 acres of land from AG-1, Agricultural Preservation, to R-3, Single Family Residen- tial, with a Planned Development Overlay (PDO). D.R. Horton also applied for a preliminary plat to be named Kingston Fields, which would create 121 single-family residential lots on two lot sizes (57 homes on 65-foot wide lots and 64 homes on 70-foot wide lots) and 14 out- lots. This proposed development is lo- cated east of Jamaica Avenue, north of Rose of Sharon Lutheran Church, and west of the Cayden Glen and Grayson Meadow subdivisions. (Continued from December 18, 2017, Planning Commission Meeting.) The Planning Commission unanimously recommended approval of the zoning amendment and preliminary plat, and the City Council unani- mously approved the applications at their meeting on February 21. Eastbrooke Cases ZA2018-004 & PP2018-005: Eastbrooke Development LLC has applied for a zoning amendment to change the zoning of property located at 6055 and 6065 Hadley Avenue South, which is east of Hadley Avenue, west of the Silverwood development, north of 65th Street, and south of the Woodbury/ Cottage Grove border from R-2, Residential Estate, to R-4, Low Density Residential with a PDO, Planned Development Overlay; and a preliminary plat for a subdivision to be called Eastbrooke, which would subdivide a 67.78-acre parcel of land into 126 single-family residential lots Economic Development Authority Development Update March 7, 2018 Page 10 of 17 and 10 outlots. The Planning Commission unanimously recommended approval of the zoning amendment and preliminary. The City Council will take final action at their March 7 meeting. Planning Commission Requests: Follow-up information was provided to the Planning Commis- ertaining to coyotes in various residential neighborhoods, LED street lighting, and Planning Commission Meeting February 26, 2018 The Planning - mendations to the City Council for the following planning applications are summarized below: Southeast Industrial Park North Star Sheets: Opus Development Company has filed applications for a preliminary plat, site plan review, and variance. The preliminary plat is called Southeast Industrial Park and creates one industrial lot and three outlots on property located at the northwest quadrant of Hemingway Avenue and 91st Street for Phase I of the Southeast Industrial Park for the North Star Sheets LLC parcel and supporting industrial park infrastructure for future development. The site plan review is for a 161,100 square foot industrial building, with a variance due to the loading docks being visible from the dead end of Hemingway Avenue. The site plan covers 12.6 acres of the 37.4 total platted acres. The Planning Commission unanimously recommended approval of the applications. These applications will be on the March 7, 2018, City Council agenda for final action. Thompson Grove Country Club: The Cottage Grove Economic Development Authority has applied for a comprehensive plan amendment to change the land use of property at 6541 85th Street South from Parks and Private Open Space to Low Density Residential, and a preliminary plat to subdivide the 1.36-acre parcel of land into three single-family residential lots. The subdivision name is Thompson Grove Country Club and will be located at the site of the former Cottage Grove municipal pool building. The Planning Commission unanimously recommended that the City Council approve the Economic Development Authority Development Update March 7, 2018 Page 11 of 17 comprehensive plan amendment and preliminary plat. These applications will be on the March 21 Council agenda for final determination. USS Solar Meister: An interim conditional use permit to allow a one-megawatt community solar gar- den on an approximate 38.9-acre parcel at 11501 70th Street, and a variance to allow the solar energy system to be located within 300 feet of the property boundary lines bordering two other community solar gardens. The Planning Commission, on a 6-to-1 vote, recommended approval of the interim conditional use permit and variance applications. The City Council will take final action on the applications at their meeting on March 21. Variance Request Location Complies with 300-foot setback requirements Planning Commission unanimously approved the proposed site plan; it will be on the March 21 City Council agenda. Economic Development Authority Development Update March 7, 2018 Page 12 of 17 Triple Angels/Cottage Grove Woods: Triple Angels Healthcare has applied for a preliminary plat to be called Cottage Grove Woods, which will re-plat approximately 17.6 acres of land and surrounding property at 7150 West Point Douglas Road to create two lots and one outlot, and a site plan review for a 9,150 square foot one-level assisted living facility with 15 parking spaces and a future building addition of approximately 6,732 square feet with additional parking. The Planning Commission unan- imously recommended approval of the applications, which will be on the March 21 Council agenda. Hamlet Heights: Preliminary plat to subdivide a 10.3525-acre parcel of land into 24 single-family res- idential lots and 2 outlots. The subdivision plat name is Hamlet Heights. This project is located west on the southerly extension of Hamlet Avenue, and north of the Pinehill Acres neighborhood. Following public testimony on the proposed development, the Planning Commission unanimously recom- mended approval of the preliminary plat. The City Council will take final action at their meeting on March 21. 2040 Comprehensive Plan Update Status Report: Stantec Consulting Services gave a presentation on the Housing Element of the 2040 Comprehensive Plan Update. Economic Development Authority Development Update March 7, 2018 Page 13 of 17 My Future Cottage Grove Housing Focus Group Meeting On Monday, February 26, 2018, the City hosted a joint meeting of the Housing Focus Group, Com- prehensive Plan Steering Committee, and Planning Commission. This included a public open house that started at 5:00 p.m. Poster boards displayed information regarding affordable housing, bus rapid transit, current and future land uses in Cottage Grove, and housing needs. The joint meeting included a presentation by Stantec that pertained to the following: Types of housing developments desired in Cottage Grove. Identifying potential concerns for certain types of residential housing. Identifying housing types needed in Cottage Grove. Grove. Identifying types of community services for high density residential developments. Types of senior housing desired and affordable housing alternatives. The Cottage Grove Housing Online Survey (https://www.surveymonkey.com/r/5ZP86PZ) was just launched and will be open until March 23. Single-Family Housing Builders Panel On Thursday, March 15, 2018, the City is hosting a Single-Family Housing Builders Panel from 6:30 p.m. to 7:30 p.m. in the Training Room at Cottage Grove City Hall; this panel discussion is open to the public. The Panel Discussion will include a number of single-family housing builders, some who building in our community. The builders will share their insight on current trends in single-family hous- ing development that they are seeing in the market. Builders will also discuss what they see about the future of the condominium and townhome market. Mississippi Dunes 5th Addition Mississippi Dunes 5th LLC submitted their application for the final plat for Mississippi Dunes 5th Addition, which will consist of 44 lots for single family homes and 3 outlots. This final plat and the development agreement is scheduled to be on the April 4 City Council agenda. Economic Development Authority Development Update March 7, 2018 Page 14 of 17 Economic Development My Future Cottage Grove Retail & Restaurants The My Future Cottage Grove Retail and Restaurants group met on Thursday, February 15. The group discussed the current market trends occurring in the retail and restaurant sector in Minne- sota, focusing on how the retail sector is continually changing due to online sales and what busi- nesses are expanding across the country. The group also discussed how the City of Cottage Grove takes the site criteria for national chains and works to match them with existing sites in the City. Finally, the group discussed what they would like see as their focus moving forward and how they would like to know the decision-making process of restaurants when they pick a location. The group will meet March 22 from 6:00 p.m. to 7:00 p.m. in the Training Room at City Hall. Local restaurant owners have been invited to speak about how restaurants make key decisions regarding locations. Modern Automotive Performance Modern Automotive Performance is looking to expand its current operations with a warehouse and distribution addition of 24,080 square feet. As part of their expansion project, Modern Automotive has filed a Business Assistance Application, which will be brought before the EDA in March. The plans for the expansion will be submitted by the end of March and placed on the April Planning Commission for formal site approval. At the February EDA meeting, the EDA approved the letter of intent to sell 50 feet of land to the north of their property for the expansion and approved a resolution in support of Modern Automotive Performance for the Job Creation Fund. Lodging Tax The EDA, at their October 2017 meeting, was in favor of moving forward with a Lodging Tax to further market the City of Cottage Grove to potential businesses and visitors. The EDA preferred the method of partnering with the Cottage Grove Area Chamber of Commerce, where the City would collect the funds and then distribute 95 percent to the Chamber of Commerce so they can market the community. Staff will draft a lodging tax plan to present to the Chamber of Commerce Executive Committee in April. A complete plan of implementing and utilizing the lodging tax funds will be brought before the EDA in May or June. ICSC Conference The International Council of Shopping Centers (ICSC) will be hosting their RECON Conference from May 20-23, 2018, in Las Vegas. The City of Cottage Grove will be attending and promoting the available retail sites in Cottage Grove. Currently work is being done on completing marketing material for the conference. CSAH 13/22 Construction will begin in 2019 on a roundabout at the intersection of Hinton Avenue and 70th Street. A meeting was hosted at City Hall on February 28 for businesses to offer their feedback and concerns on the project. The roundabout will be designed so that it can easily be expanded to two lanes in the future if and when there is sufficient demand. Vacant Wal-Mart Space The Subway located inside the Wal-Mart has vacated their space. In speaking with Store Manager Jeremy Lyons, corporate headquarters, at this time, has no plans to fill the space or expand any current services at the front of the store that they have shared with staff at the store. If someone Economic Development Authority Development Update March 7, 2018 Page 15 of 17 was interested in starting a business in the former Subway space they can contact Wal-Mart and speak with the store manager. Washington County Park Grove Library Washington County will be hosting three separate events to offer feedback on the Park Grove Library project. The events will have a short presentation regarding the first stages of the project and its overall schedule. Those that attend will be able to offer their feedback with library staff and architects. These events will be held in the Park Grove Library Meeting on the following dates and times: Tuesday, March 20, 4:00 PM to 7:00 PM Monday, April 16, 6:00 PM to 8:00 PM Tuesday, May 15, 6:30 PM to 8:00 PM Economic Development Authority Development Update March 7, 2018 Page 16 of 17 OLTMAN MIDDLE SCHOOL East Elevation West Elevation Exterior Materials Installation Exterior Pool Inspection Pool Pool Stairs Theater Economic Development Authority Development Update March 7, 2018 Page 17 of 17 NORRIS SQUARE -¨­­¤ ¯®«¨² &¤£¤± « 2¤²¤±µ¤ " ­ª ®¥ 4§¤ "¤¨¦¤ "®®ª &¤¡±´ ±¸ ͻ͹ͺ΁ Summary of Economic Activity Employment and Wages Prices I-1 &¤£¤± «2¤²¤±µ¤" ­ª®¥ -¨­­¤ ¯®«¨² Consumer Spending and Tourism Manufacturing Agriculture, Energy, and Natural Resources Construction and Real Estate I-2 Park Grove Library Community Engagement We would like to invite you to participate in three community engagement events during the early design phase of the new library. We welcome your thoughts, comments and input throughout this process. Please join us for one or all of these events. We look forward to hearing from you. Pre-Design Open House 1: Tuesday, March 20 th 4-7 pm at Park Grove Library Meeting Room Please join us for an informal visioning session to collect your ideas about the new library. There will be a short presentation beginning at 4 pm regarding the first stages of this important project and information about the overall project schedule. This information will be repeated again with the presentation beginning at 6 pm for those who can join us later. At this informal gathering, you will be able to talk with library staff and the architects to discuss your thoughts about the project. Visioning questions will be recorded on large rolls of paper and distributed around the room. We encourage you to talk to library staff and architects about your ideas and record your comments about the library on these large pieces of paper. Feel free to share one idea or many or just stop by to talk. th Pre-Design Open House 2: Monday, April 16 6 8 pm at Park Grove Library Meeting room We welcome you to join us for a short presentation regarding the feedback that you have provided to us during the first Open House as well as the on-line survey. The presentation will begin at 6:15 pm and will be approximately 20 minutes. At this Open House, we will be asking for further comments and will review the comments we have heard to date. After the presentation there will be an engagement activity for those who are interested to offer even more info into visioning for the new library. th Pre-Design Open House 3: Tuesday, May 15 6:30 8 pm at Park Grove Library Meeting Room The third of the early design Open House meetings will continue build on the comments we have received to date and help us dig deeper into the elements of the library. This Open House will consist of a presentation and an activity to collect your feedback. The presentation will start at approximately 6:45 and will be approximately 20 minutes. As we develop early design information we will be asking for your continued feedback and ideas. Future community engagement opportunities: Please plan to join again for two additional community engagement events which will be held at a later date as the design progresses. We look forward to hearing your thoughts about the new Park Grove Library! Keep your ideas coming! TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: March 13, 2018 RE: Request the City Council to call for a public hearing for the creation of a TIF District for Modern Automotive Performance Background In the spring of 2017 Modern Automotive Performance, located at 9800 Hemingway Avenue in the City of Cottage Grove Business Park, presented at an area entrepreneurial conference that they were looking to expand their operations due to the continual growth of the company. Modern Automotive Performance was looking to expand by an additional 24,080 square feet (SF) including the addition of two (2) loading dock doors and two (2) overhead doors, which will face north. Modern Automotive Performance as part of their proposed expansion would also be adding an additional 20+ jobs. Modern Automotive Performance has been transparent that they were considering sites that could help them lower costs through business subsides during the construction process and a site that made geographical sense to ship their products around the US. In August 2017, the City of Cottage Grove made three proposals for Modern Automotive Performance to remain in Cottage Grove. After reviewing the three proposals Modern Automotive Performance determined that since they would qualify for public financing programs through DEED and potentially tax increment financing through the City of Cottage Grove’s Business Subsidy Policy, expanding at their current location was the best option for their continued growth. Originally Modern Automotive Perfromance was looking to fit their proposed expansion on their current parcel, however the layout would have most likely required a variance to the setbacks or impacted access to the sites parking for employees and deliveries. Therefore, Modern Automotive Performance submitted a letter of intent to the EDA in February (vote 5 to 0) to purchase of the 50 foot wide parcel (21,104 sq. ft.) of land to the north of their site, which will leave the EDA-owned parcel to the north (9700 Hemingway Avenue) a 3.03 acre site for development. Modern Automotive Performance will be required to obtain a plat and site plan approval. Due to a delay with an Xcel Energy line needing to be moved, in the rear of the existing building, the site plan for the expansion will go to the April 23rd Planning Commission meeting and then to the May 16th City Council for final approval. As part of the site plan approval, the City of Cottage Grove is requesting that a berm be constructed on the Economic Development Authority March 13, 2018 west side of the property along the exposed parking and drive lane aisles of the lot and trees would be planted on the berm for noise remediation. Business Financing Assistance Modern Automotive Performance is applying to the State of Minnesota Department of Employment and Economic Development Job Creation Fund. The Job Creation Fund offers financial incentives for businesses in manufacturing, warehouse and distribution that expand through the creation of new jobs and capital investment. To qualify a business must create at least 10 new full time permanent jobs that pay at least $13.01 in wages and benefits within two years of becoming a Job Creation Fund business. The business must also invest at least $500,000 in real property improvements within one year of becoming a designated Job Creation Fund business. Modern Automotive Performance’s expansion has a total of $1,486,649 in property improvements and will create 13 new jobs over the first two years, with another 8 jobs in year 3. At the February 13th EDA meeting the EDA passed a resolution (vote 5-to-0) of support for Modern Automotive Performance’s application to the Job Creation Fund, with the Cottage Grove City Council passing a resolution (vote 5-to-0) at their March 7th meeting. As part of their expansion Modern Automotive Performance is applying for business assistance in the form of tax increment financing (TIF) to finance costs related to development. The TIF would be an Economic Development District with a maximum duration of eight years. Their application for assistance will be reviewed by our financial advisors, Ehlers Inc., to meet the “but for” analysis and statutory qualifications. In order to begin the process the EDA by resolution must request that the City Council call for a public hearing for the creation of a TIF district for Modern Automotive Performance. Ehlers Inc. will complete a financial analysis of the project, which will be presented at the April 10th EDA meeting. Recommendation By motion approve the resolution requesting the City Council of the City of Cottage Grove call for a public hearing on the modification of the development program for Development District 1 and the establishment of Tax Increment Financing District 1-18. Attachments 1. Resolution requesting for a public hearing 2. TIF Schedule COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2018-002 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF COTTAGE GROVE CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-18 (MODERN AUTOMOTIVE) (AN ECONOMIC DEVELOPMENT DISTRICT). BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Cottage Grove Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of Cottage Grove, Minnesota (the "City") established Development District No. 1 pursuant to Minnesota Statutes, Minnesota Statutes, Sections 469.090 to 469.1082, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing the modification of the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 1-18 (Modern Automotive) (the “TIF District”) pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 to 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on May 2, 2018 to consider the proposed adoption of the Modification to the Development Program for Development District No. 1 and the proposed adoption of the Tax Increment Financing Plan for TIF District (collectively, the "Program and Plan") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Program and Plan to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Program and Plan are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Program and Plan to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Program and Plan to the county and the school district(s) in which TIF District is located not later than April 2, 2018. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Program and Plan and related documents and to undertake other actions necessary to bring the Program and Plan before the Council. Approved by the Board on March 13, 2018. _______________________________ Chair ATTEST: ______________________________ SCHEDULE OF EVENTS COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COTTAGE GROVE WASHINGTON COUNTY, MINNESOTA FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-18 (MODERN AUTOMOTIVE) (an economic development district) (draft as of February 6, 2018) March 13, 2018 EDA requests that the City Council call for a public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed Establishment of Tax Increment Financing District No. 1-18. March 19, 2018 Project information (property identification numbers/parcel list, maps and list of sources and uses of funds) for drafting necessary documentation sent to Ehlers. March 21, 2018 City Council calls for public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed Establishment of Tax Increment Financing District No. 1-18. N/A* Project information submitted to the County Board for review of county road impacts if necessary* (at least 45 days prior to public hearing). *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. Because the City staff believes that the proposed tax increment financing district will not require unplanned county road improvements, the TIF Plan will not be forwarded to the County Board 45 days prior to the public hearing. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. April 2, 2018 Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). \[Ehlers will fax & mail on or before April 2, 2018.\] SCHEDULE OF EVENTS – PAGE 2 COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COTTAGE GROVE WASHINGTON COUNTY, MINNESOTA FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-18 (an economic development district) April 9, 2018 EDA considers the Program Modification and TIF Plan and approves a resolution. April 11, 2018 Date of publication of TIF hearing notice and map (at least 10 days but not more than 30 days prior to hearing). \[South Washington County Bulletin publication deadline, 4:00 .., April 5, 2018. – Ehlers will submit notice, map, and PM instructions to newspaper via email on or before April 5, 2018.\] April 11, 2018 Ehlers & Associates conducts internal review of the Program Modification and TIF Plan. April 23, 2018 Planning Commission reviews Program Modification and TIF Plan. May 2, 2018 City Council holds a public hearing at 7:00 .. on a Modification to the Development PM Program for Development District No. 1 and the Establishment of Tax Increment Financing District No. 1-18. \[Ehlers will send Council packet information to City via email on or before April 25, 2018.\] City approves the business subsidy agreement and TIF agreement. May 3, 2018 City can issue building permits and development can commence. __________, 2018 Ehlers & Associates files the Program Modification and TIF Plan with the MN Department of Revenue and the Office of the State Auditor and with Washington County. An action under subdivision 1, paragraph (a), contesting the validity of a determination by an authority under section 469.175, subdivision 3, must be commenced within the later of: (1) 180 days after the municipality's approval under section 469.175, subdivision 3; or (2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177, subdivision 1. To: EDA From: Christine Costello, Economic Development Director Date: March 6, 2018 Subject: Upcoming Events DATE EVENT TIME LOCATION March 13, 2018 Mini Job Fair 1 pm to 3 pm Wash. County Service Center-CG March 15, 2018 Open House: 70 th & 4:30 pm to 6:30 pm St. Luke Lutheran Hinton Roundabout Church March 15, 2018 Single-Family Housing 6:30 pm to 7:30 pm Training Room Builder Panel March 17, 2018 Family Friendly St. 3 pm to 9 pm River Oaks Patrick’s Day March 20, 2018 Pre-Design Open House 4 pm to 7 pm` Park Grove Library Park Grove Library Meeting Room March 24, 2018 Egg Hunt 9 am Ice Arena March 24, 2018 Paint ‘n Sip Party 7 to 9 pm River Oaks Marh 25, 2018 Cottage Grove Lions 8 am to 12:30 pm VFW Red Barn Easter Breakfast March 26-30, 2018 Spring Break March 26, 2018 Community Center Task 5:30 pm Force April 3, 2018 3M Business Breakfast 7 am to 9 am 3M Cottage Grove April 7, 2018 Kid Fest 9 am to Noon Ice Arena April 9, 2018 Mississippi River Access 6 pm to 7 pm City Hall Task Force April 12, 2018 Tornado Drill Day 1:45 pm & 6:55 pm April 16, 2018 Pre-Design Open House 6 pm to 8 pm Park Grove Library Park Grove Library Meeting Room April 21, 2018 Chamber Business Expo TBA Ice Arena DATE EVENT TIME LOCATION April 21, 2018 Month of the Militrary 9:30 am to Noon Cottage Grove Child Event Armory April 22, 2018 Earth Day April 28, 2018 Arbor Day Celebration 9 am Hamlet Park April 28, 2018 Stone Soup-er Bowl 9 am to 5 pm Park Grove Bowling, SSP May 5, 2018 Spring Clean Up 7 am to 3 pm Public Works May 7, 2018 Community Center Task 5:30 pm to 8:30 pm City Hall Force May 11, 2018 Ice Show 7 pm Ice Arena May 12, 2018 Ice Show 3 pm Ice Arena May 14, 2018 Mississippi River Access 6 pm to 7 pm City Hall Task Force May 15, 2018 Pre-Design Open House 6:30 pm to 8 pm Park Grove Library Park Grove Library Meeting Room May 19, 2018 Standing Strong 5K June 14-17, 2018 Strawberry Fest Kingston Park July 19, 2018 Tunes into Twilight 6:30 pm to 8:30 pm City Hall Summer Concert Series Amphitheatre August 16, 2018 Tunes into Twilight 6:30 pm to 8:30 pm City Hall Summer Concert Series Amphitheatre