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HomeMy WebLinkAbout2018-07-10 COMPLETE PACKET AGENDA CITY OF COTTAGE GROVE Economic Development Authority July 10, 2018, 7:30 A.M. Cottage Grove City Hall, Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3.1 May 29, 2018 EDA Minutes 4. Business Items 4.1 Economic Development Update/Business Inquiry 4.2 Amendment to the Contract for Residential Development with Twin Cities Habitat for Humanities 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, August 14, 2018 at 7:30 AM CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES th May 29, 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 29 day of May 2018. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Wayne Butt, EDA Member Chris Carey, EDA Member Steve Dennis, EDA Vice President Dan Myers, EDA Member Eric Thiewes, EDA Member Ramona Westerberg, EDA Member Members Absent: None Staff Present: Charlene Stevens, EDA Executive Director Robin Roland, Finance Director Christine Costello, Economic Development Director Matt Wolf, Economic Development Specialist Others Present: Kori Land, LeVander, Gillen & Miller, P.A. Kyle Nelson, Modern Automotive Performance Linda Larson, Renewal by Andersen Chris Stokka, MWF Properties Matt Yetzer, MWF Properties APPROVAL OF MINUTES th 3.1 Approval of EDA Minutes May 8, 2018 EDA Member Thiewes had a correction for the minutes. The meeting minutes should be corrected to note that EDA Member Thiewes removed himself from the vote on agenda item 4.2 from the th May 8 EDA Meeting due to his work with Minnesota Housing. Economic Development Authority – Minutes May 29th, 2018 Page 2 of 4 EDA Vice President Dennis motioned to approve the May 8th, 2018 EDA Meeting Minutes. EDA Member Westerberg seconded. Motion passed unanimously (7-to-0 vote) PUBLIC HEARINGS 5.1 MWF Properties: A. Resolution Approving Sale of Properties to MWF Properties LLC. B. Letter of Support for Project – City of Cottage Grove Economic Development Director Costello presented on the proposal by MWF Properties to build multi- family workforce housing in the Langdon Village area and selling EDA owned land for the project. EDA Member Thiewes removed himself from the vote due to his work with the Minnesota Housing Finance Agency. EDA Member Westerberg asked what was the difference between workforce housing and Section 8 housing. MWF Properties Chris Stokka responded that the main difference is the way they are financed. Section 8 was financed through the United Stated Department of Housing and Urban Development and is no longer in use. MWF Properties Stokka stated workforce housing or section 42 is housing for residents that are 60% or below the area median income. EDA Member Westerberg asked if the residents rent was subsidized or unsubsidized. MWF Properties Stokka responded that the residents are a combination in workforce housing. The residents of workforce housing can get vouchers or subsidies to help pay the rent from other programs but in Section 8 housing the rent is 100% subsidized. EDA President Bailey opened the public hearing and no comments were taken. EDA President Bailey closed the public hearing. EDA Member Carey motioned to authorize the EDA President and Executive Director to execute the Purchase Agreement with MWF Properties for the purchase of the EDA-owned parcels of land located in the Langdon Village area. EDA Member Myers seconded. Motion passed (6-to-0, EDA Member Thiewes abstained from voting due to his affiliations with Minnesota Housing Finance Agency). EDA Member Carey recommended the City Council authorize a letter of support to Minnesota Housing Finance Agency for the Deferred Funding and Housing Tax Credit. EDA Vice President Dennis seconded. Motion passed (6-to-0) 5.2 Renewal by Andersen: A. Resolution Approving the Purchase of Property from WAG FARMS, INC. and Sale of Property to Renewal by Andersen LLC for Development Purposes Economic Development Director Costello presented on the need for parking from Renewal by Andersen as their business continues to expand. EDA Member Myers asked if WAG FARMS, INC. was that same owner of the dog park located near the Business Park. EDA President Bailey responded no they are not the same owner. EDA President Bailey opened the public hearing and no comments were taken. EDA President Bailey closed the public hearing. EDA Vice President Dennis motioned to approve the resolution approving the purchase of property from WAG Farms Trust and Glendenning Farms, L.P. for development purposes. EDA Member Thiewes seconded. Motion passed (7-to-0). Economic Development Authority – Minutes May 29th, 2018 Page 3 of 4 EDA Member Myers motioned to approve the resolution approving the sale of property to Renewal by Andersen LLC for development purposes. EDA Member Butt seconded. Motion passed (7-to-0). 5.3 Modern Automotive Performance: A. Resolution Approving Sale of Property to 9800 Hemingway LLC B. Contract for Private Development between Cottage Grove EDA and 9800 Hemingway, LLC. C. Business Subsidy Agreement between Cottage Grove EDA and 9800 Hemingway, LLC. D. Resolution Authorizing an Interfund Loan in Connection with TIF District 1-18. EDA Member Carey removed himself from the Council Chambers for the discussion of this item due to his conflict of interest as President of 9800 Hemingway LLC and an EDA Member. Economic Development Specialist Wolf presented on the Modern Automotive Performance expansion and their purchase of land owned by the EDA for their expansion. Economic Development Specialist Wolf also discussed the Contract for Private Development, Business Subsidy Agreement and Interfund Loan that was needed for Modern Automotive Performance to gain financial assistance to move the project forward. EDA President Bailey opened the public hearing and no comments were taken. EDA President Bailey closed the public hearing. EDA Member Westerberg motioned to approve the resolution approving the sale of property to 9800 Hemingway LLC for development purposes. EDA Vice President Dennis seconded. Motion passed (6-to-0). EDA Vice President motioned to approve the Business Subsidy Agreement between the Cottage Grove Economic Development Authority and 9800 Hemingway, LLC. EDA Member Thiewes seconded. Motion passed (6-to-0). EDA Member Myers motioned to authorize the contract for private development by and between the Cottage Grove Economic Development Authority and 9800 Hemingway, LLC. EDA Member Butt seconded. Motion passed (6-to-0). EDA Member Thiewes motioned to approve the resolution authorizing an interfund loan for advance of certain costs in connection with Tax Increment Financing District No. 1-18 (Modern Automotive). EDA Vice President Dennis seconded. Motion passed (6-to-0). OTHER BUSINESS 6.1 Calendar The EDA looked over the upcoming events that were occurring on the calendar. EDA President stated that this coming Saturday was the ribbon cutting and grand opening for the New Central Fire Station. EDA Member Butt pointed out that the Chamber of Commerce Business Networking event scheduled in Newport has been moved to Applebee’s. th EDA President Bailey mentioned that on June 5 the Legends of Cottage Grove will be hosting their ribbon cutting from 10:00 am until 11:30 am Economic Development Authority – Minutes May 29th, 2018 Page 4 of 4 6.2 EDA Comments EDA President asked if staff wanted to give a debrief of ICSC at this meeting or next month’s meeting. City Administrator Stevens stated a debrief will be given at next month’s meeting. 6.3 Response to Previous EDA Comments Economic Development Director Costello replied that the City of Cottage Grove is working on a video regarding market rate housing vs. workforce housing that was requested by EDA Vice President Dennis th at the May 8 EDA Meeting. City Administrator Stevens gave an update on the Minnesota Legislation Session in regards to economic th development as requested by EDA President Bailey at the May 8 EDA Meeting. WORKSHOP 7.1 None AJOURN EDA Member Butt made a motion to adjourn. EDA Member Thiewes seconded. The meeting adjourned at 8:09 a.m. (7-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 and Matt Wolf, Economic Development Specialist Date: July 3, 2018 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action 2018 Cottage Grove Realtor Economic Development Specialist Wolf met Forrest Cyr, St. Forum, May 30, 2018 Paul Area Association of Realtors Government Affairs Director, to discuss the 2018 Cottage Grove Realtor Forum in October. Lodging Tax and Ribbon Economic Development Director Costello, City Administrator Cutting Discussion, May 30, Stevens and Economic Development Specialist Wolf met 2018 with the Cottage Grove Area Chamber to discuss a potential partnership in regard to lodging tax. Additionally, discussed ribbon cutting events in the future. Meeting with Cobblestone As a follow up to ICSC Mayor Bailey, Councilmember Hotel, May 31, 2018 Dennis, and city staff met with a representative of Cobblestone Hotels. Discussions included a review of the city approval process, business subsidy policy and then a tour of three potential hotel site locations. The locations included the northwest corner of County Road 19 and East Point Douglas (Shoppes at Cottage View), 9165 West Point Douglas Road (former Majestic Ballroom), and 7855 Harkness Avenue (the EDA-owned parcel next to Oakwood Park). The Legends of Cottage The Legends of Cottage Grove held its grand opening and Grove Grand Opening, June ribbon cutting celebration. 4, 2018 MWF Properties Submittal to MWF Properties has submitted their housing tax credit MHFA, June 14, 2018 application to Minnesota Housing Finance Agency (MHFA) for the proposed Langdon Flats project. The Housing Tax Credit Program is a federal program that offers investors a 10-year reduction in tax liability in exchange for capital to build eligible affordable rental housing units in new construction, rehabilitation, or acquisition with rehabilitation. MWF Properties will receive notice on November 1st if they received funding. This will determine of the project moves forward. BR&E Interview with Zywiec Economic Development Specialist Wolf and Administrative Landscaping, June 26, 2018 Intern Aaron Sather conducted a BR&E interview with Bill Zywiec, owner of Zywiec Landscape and Garden Center. Development Inquiry Update July 3, 2018 Page 2 BR&E Interview with Junction Economic Development Specialist Wolf and Administrative 70 Grill, June 27, 2018 Intern Aaron Sather conducted a BR&E interview with Jason Fleig, owner and manager of Junction 70 Grill. Correspondence with Kwik As a follow-up to ICSC Kwik Trip has submitted a site plan Trip, June 29, 2018 for a gas station at 80th Street Crossing. City staff has requested an appointment with Kwik Trip to further understand the proposed function of the gas station layout. The proposed site layout has some traffic conflict points that will need to be resolved. Meeting with Cobblestone City staff had a meeting with the representative of Hotel, July 3, 2018 Cobblestone Hotel to continue discussions about their proposed site plan. The proposed hotel with a restaurant will require 90 parking spaces. The proposed layout of the site will only accommodate 78 parking spaces. Staff has offered them the option of Oakwood Park and cross parking easement to meet their parking requirement. Discussions on incentives will require Cobblestone Hotel to complete our business subsidy application and provide a proforma for the project. This can’t be determined until the site plan becomes more finalized. Summary of Economic Activity Employment and Wages - Prices - Consumer Spending and Tourism I-1 - -- - - - - Services Manufacturing -- Construction and Real Estate - Agriculture, Energy, and Natural Resources - -- - - I-2 TO: Economic Development Authority FROM: Christine Costello, Economic Development Director DATE: July 10, 2018 RE: Second Amendment to the Contract for Residential Redevelopment with Twin Cities Habitat for Humanities Background On March 21st the City Council approved the contract for residential redevelopment with Twin Cities Habitat for Humanities (TCHFH) for the former municipal pool site at 6541 85th Street for the construction of three affordable workforce single-family homes. The homes will be one-story, four-bedroom. The design of the homes will be in keeping with the architecture standards of the neighborhood and the City’s Zoning Ordinance. Looking Southeast As TCHFH began their review of historical photos of the site as part a Phase I environmental review, the images showed a structure in the area of the former pool parking lot in 1947. This finding presented concerns to TCHFH related to potential environmental issues at the site. On April 26th observation trenches were dug to verify that there were no unknown structures or building materials in the area of question. TCHFH and Braun Intertec (environmental consultant) observed the trenches and no items were identified of concern. Soil samples were also taken on the site and the results revealed that there was lead contamination in the soil approximately four feet down. Economic Development Authority July 10, 2018 Page 2 of 2 On May 16th the City Council approved the first amendment to the contract for residential redevelopment with TCHFH (the EDA approved in May 8th) due to the environmental work as well as the encroachment issues with some of the neighboring properties. The encroachment issues were resolved and TCHFH will close on two of the three lots on July 11th; the two lots are not impacted by the environmental remediation that needs to take place. Discussion The remaining lot that will not close on July 11th due to the lead contamination in the soil. The soil will need to be corrected before the lot can close. TCHFH has requested that the City enroll the site in the Minnesota Pollution Control Agency’s (MPCA) Voluntary Investigation and Cleanup (VIC) Program. By enrolling in the VIC Program, it will allow TCHFH and its lenders reasonable confidence that they will know the extent of the environmental problem and what the appropriate cleanup action for the lot will be. Enrolling in VIC provides TCHFH and its lenders a technical approval letter which assures the MPCA has reviewed and approved the action plan. This process will last till mid-Fall, thus pushing back the closing on the final lot till a technical approval letter is received by the City and TCHFH. Since the closing can not occur till after this process a second amendment to the contract for residential development is required. The proposed closing for the final lot will take place on or no later than December 31, 2018. Recommendation Authorize the EDA President and Executive Director to amend the Contract for Residential Development with Twin Cities Habitat for Humanities. Attachment Second Amendment to Contract for Residential Redevelopment To: EDA From: Matt Wolf, Economic Development Specialist Date: July 2, 2018 Subject: Upcoming Events DATE EVENT TIME LOCATION July 10, 2018 Celebrating Diversity 7:00 pm to 8:30 pm City Hall Committee July 10, 2018 Chamber: Business After 4:30 pm to 6:00 pm TBD Hours Networking Event July 18, 2018 Chamber 411 10:30 am to 11:30 Cottage Grove Area am Chamber of Commerce July 19, 2018 Tunes into Twilight 6:30 pm to 8:30 pm City Hall Summer Concert Series Amphitheatre July 18, 2018 Paint N’ Sip (Arts 7 pm to 9:00 pm River Oaks Golf Commission) Course and Event Center July 19, 2018 Burgers and Brews (Stone 5:00 pm to 8:00 pm River Oaks Golf Soup Thrift Shop Course and Event Fundraiser) Center August 6, 2018 Community Center Task 6:00 pm to 9:00 pm City Hall Force August 7, 2018 Night to Unite Evening Cottage Grove Neighborhoods August 15, 2018 Chamber 411 10:30 am to 11:30 Cottage Grove Area am Chamber of Commerce August 16, 2018 Tunes into Twilight 6:30 pm to 8:30 pm City Hall Summer Concert Series Amphitheatre August 22, 2018 Chamber: Lunch & Learn 12:00 pm to 1:30 River Oaks Golf BizRecycling Washington pm Course and Event County Center