HomeMy WebLinkAbout2018-07-10 PACKET 03.01.
CITY OF COTTAGE GROVE
E CONOMIC
D EVELOPMENT
A UTHORITY
MINUTES
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May 29, 2018
Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was
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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
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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
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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.
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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
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at the May 8 EDA Meeting.
City Administrator Stevens gave an update on the Minnesota Legislation Session in regards to economic
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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