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HomeMy WebLinkAboutCOMPLETE PACKET 2019-01-08 AGENDA CITY OF COTTAGE GROVE Economic Development Authority January 8, 2019, 7:30 A.M. Cottage Grove City Hall, Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3.1 November 13, 2018 EDA Minutes 4. Business Items 4.1 Economic Development Update/Business Inquiry 4.2 Project Viking Letter of Intent 5. Public Hearings 5.1 Up North Plastics A. Authorize the contract for private development by and between the Cottage Grove Economic Development Authority and Up North Plastics, Inc. and Mars II, Inc. B. Resolution approving authorizing an interfund loan for advance of certain costs in connection with Tax Increment Financing District No.1-19 (Up North Plastics, Inc.) 6. Other Business 6.1 EDA Calendar 6.2 EDA Comments 6.3 Response to Previous EDA Comments 7. Workshop 7.1 DARTS Circulator Bus Presentation 7.2 Lodging Tax Discussion – Cottage Grove Area Chamber of Commerce 8. Adjournment The next EDA Meeting will be held on Tuesday, February 12 at 7:30 AM CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES Special EDA Meeting th November 13, 2018 Pursuant to due call and notice thereof, a special 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 November 2018 at 9:03 am. CALL TO ORDER The meeting was called to order at 9:03 a.m. by EDA President Bailey. ROLL CALL Members Present: Myron Bailey, EDA President Wayne Butt, EDA Member Steve Dennis, EDA Vice President Dan Myers, EDA Member Ramona Westerberg, EDA Member Members Absent: Chris Carey, EDA Member Eric Thiewes, EDA Member Staff Present: Jennifer Levitt, Interim City Administrator Robin Roland, Finance Director Christine Costello, Economic Development Director Matt Wolf, Economic Development Specialist Others Present: Michael Falleroni, Manager, Credits and Incentives Consulting, Ryan Jason Aarsvold, Senior Municipal Advisor, Ehlers APPROVAL OF MINUTES th 3.1 Approval of EDA Minutes October 9, 2018 EDA Vice President Dennis motioned to approve the October 9th, 2018 EDA Meeting Minutes. EDA Member Westerberg seconded. Motion passed unanimously (5-to-0 vote) Economic Development Authority – Minutes November 13, 2018 Page 2 of 3 BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry Economic Development Specialist Wolf gave an update on the new business and projects occurring in Cottage Grove. EDA Vice President Dennis highlighted the North Star Sheets ribbon cutting the great work staff did on making the project happen on a tight timeline. EDA President Bailey stated he spoke briefly with the North Star Sheets CEO and that the CEO stated that after doing this for 40 years Cottage Grove was one of the best communities he has worked with in his career. 4.2 Resolution adopting a Modification to the Development District No. 1, Establishing Tax Increment Financing District 1-19 (Up North Plastics Inc.) Senior Municipal Advisor Jason Aarsvold gave a brief overview of Tax Increment Financing and the process for creating Tax Increment Financing District 1-19. EDA Member Myers inquired what happens to Tax Increment Financing (TIF) Districts when property taxes increase or decrease. Senior Municipal Advisor Aarsvold responded that the business and the City of Cottage Grove will enter into a TIF agreement at a set monetary level. Once that level is met within the nine years that the TIF district is active no more distributions are made to the business. However, if property taxes decrease and the business do not receive all of their financial incentives through the TIF in the nine years of the TIF the agreement ends. That way no matter if property taxes increase or decrease the TIF will only generate a certain financial incentive that will never go beyond that capped incentive level. EDA Member Myers motioned to approve a resolution adopting a modification to the Development Program for Development District No. 1, establishing Tax Increment Financing District No. 1-19 therein and adopting a Tax Increment Plan Therefor. EDA Member Butt seconded (5-to-0 vote). PUBLIC HEARINGS None OTHER BUSINESS 6.1 Calendar None 6.2 EDA Comments None 6.3 Response to Previous EDA Comments Economic Development Authority – Minutes November 13, 2018 Page 3 of 3 None WORKSHOP 7.1 None AJOURN EDA Vice President Dennis made a motion to adjourn. EDA Member Westerberg seconded. The meeting adjourned at 9:32 a.m. (5-to-0 vote) Respectfully Submitted, Matt Wolf Economic Development Specialist Business/ Inquiry To: Honorable Mayor Bailey and EDA Members From: Christine Costello, Acting Community and Economic Development Director and Matt Wolf, Economic Development Specialist Date: January 3, 2019 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action Industrial & Economic Acting Community and Economic Development Director Development Summit, Costello took part in a panel discussion on the interaction of November 15, 2018 industrial development and municipalities. The summit was an opportunity for Cottage Grove to promote its Business Park and specifically speak to its recent success with the development of North Star Sheets to over 250 brokers and developers that were in attendance. Meeting with Landform, Cottage Grove met with Steve Sabraski of Landform to November 20, 2018 discuss the potential for creating a master plan for the Shoppes at Cottage View. A proposal has been requested to determine the feasibility. DK Design Meeting, Acting Community and Economic Development Director November 20, 2018 Costello and Interim City Administrator Levitt met with DK Design to discuss the redevelopment of the former Cottage Grove City Hall proposed property. PIPELINE Workforce Economic Development Specialist Wolf met with Kathleen Program, November 28, 2018 Gordon of the Department of Labor and Industry to discuss the PIPELINE Program that is offered through the State of Minnesota. An introductory email on the program will be sent to our businesses in our Business Park. Park High School – Inventor Economic Development Specialist Wolf and Washington Space, November 28, 2018 County CDA Director Chris Eng met with Park High School at their brand-new Inventor Space to discuss future collaboration on creating an advisory board made up of Cottage Grove businesses and promotion of manufacturing positions in High Schools. School District 833 Meeting Acting Community and Economic Development Director to discuss workforce issues, Costello and Economic Development Specialist Wolf met November 30, 2018 with School District 833 to discuss workforce development and working together to address education development as it relates to the Cottage Grove Business Park. Meeting with Brian Beeman Acting Community and Economic Development Director of IAG Commercial, Costello and Economic Development Specialist Wolf met December 4, 2018 with Brian Beeman of IAG Commercial to discuss available Development Inquiry Update November 7, 2018 Page 2 industrial, commercial and multi-family housing land available for development. Minnesota Rail Conference, Acting Community and Economic Development Director December 5, 2018 Costello attended the Statewide Rail Conference, which included topics on the economic development of rail sites and the state of national passenger rail system. Lodging Tax Meeting, City Administrator Levitt and Economic Development December 5, 2018 Specialist Wolf met with the Cottage Grove Area Chamber of Commerce to discuss the EDA Workshop on the Lodging Tax on January 8, 2019 rd Minnesota Marketing Economic Development Specialist attended the 3 trimester Partnership Meeting, Minnesota Marketing Partnership Meeting from the December 10, 2018 Department of Employment and Economic Development. Livable Communities Act Economic Development Specialist Wolf attended the Livable Program Workshop, Communities Act Program Workshop presented by the December 11, 2018 Metropolitan Council. To hear and discuss various grant programs offered through Metropolitan Council to help fund infrastructure improvements that include multi-family and commercial developments. McDonald’s Ribbon Cutting The City of Cottage Grove took part in a McDonald’s VIP December 18, 2018 event to celebrate the grand reopening of the McDonald’s. Business Park Meeting with Acting Community and Economic Development Director WAG Farms, December 20, Costello and Economic Development Specialist Wolf met 2018 with WAG Farms owners to discuss current and potential projects in the Business Park. Orange Theory Fitness The City of Cottage Grove hosted a ribbon cutting for Ribbon Cutting, December Orange Theory Fitness at 8621 East Point Douglas the 31, 2018 location of the former Payless Shoe Store. Federal Reserve Bank of Minneapolis Summary of Economic Activity Ninth District economic activity increased moderately since the previous report. Employment grew moderately, with hiring demand remaining robust, but a tight labor supply was restraining employment growth. Wage pressures were moderate overall, while price growth remained modest. The District economy showed growth in consumer spending, construction, residential real estate, manufacturing, and energy. Commercial real estate activity was mixed, while agricultural conditions remained weak. Employment and Wages Employment grew moderately since the last report. Hiring demand remained robust, but a tight labor supply was restraining employment growth. Job postings tracked by district states were higher overall in October compared with the same period a year earlier. Minnesota and North Dakota saw particularly strong growth in job postings, while South Dakota and the Upper Peninsula of Michigan had small declines. Ad hoc surveys of businesses in Minnesota, Montana, and South Dakota, conducted in late October and November by the Minneapolis Fed, found that a significant majority of respondents' firms were hiring; many were hiring to both increase total headcount and replace turnover. Numerous construction contacts in Minneapolis-St. Paul said they were hiring, and most were looking to increase total headcount. However, tight labor availability was making it difficult for firms to find necessary workers. Surveys by the Minneapolis Fed found that labor availability was widely seen as the biggest obstacle to short-term growth. Unemployment insurance claims have also continued to drop; over the most recent six-week period (through early November), both initial and continuing claims saw a cumulative decline of 12 percent across District states compared with the same period a year earlier. A Montana contact noted that seasonal layoffs for male-dominated industries like construction have been pushed back this year. "This hasn't happened before in the years that we've been watching." Wage pressures were moderate overall, with some evidence of stronger pressures for certain industries and worker skills. Several ad hoc surveys by the Minneapolis Fed showed wage increases coalescing around 3 percent over the past 12 months. A small majority of Minnesota and South Dakota firms reported wage increases below 3 percent; however, a small majority of Montana firms reported increases above 3 percent, as did about 70 percent of Minneapolis-St. Paul construction firms. A Minnesota services company announced it was raising its base wage from $12 to $14 per hour in hopes of hiring 300 people by year's end. A tight labor market for high-tech skills in Minneapolis-St. Paul has led to double-digit wage increases for some information technology and other STEM positions over the past 12 months. There were also reports that more companies, especially those in construction trades, were picking up a greater share of workers' health insurance premium costs to attract and retain employees. Prices Price growth remained generally modest since the previous report, though input prices saw more pressure. In a recent survey of large firms, about 30 percent saw input prices rise by 3 percent or more over the past 12 months, but 41 percent believe they will rise by 3 percent or more over the coming 12 months. Several contacts reported notable increases in freight and transportation logistics prices. Retail fuel prices in District states as of late November were substantially lower than a month earlier. However, home heating costs were expected to increase faster in District states than nationally this winter, largely due to rises in the prices of heating oil and natural gas, as the average temperature forecast is roughly flat from last year. Prices received by farmers for corn, wheat, hay, and cattle increased in September compared with a year earlier; prices for soybeans, hogs, milk, chickens, eggs, and turkeys decreased. Consumer Spending and Tourism Consumer spending grew moderately since the last report. Taxable sales have seen strong growth in South Dakota this fall compared with a year earlier; Wisconsin also saw sales growth year over year, but at slower rates than those seen over summer months. In Minnesota, hotel demand rose, with higher occupancy and revenue per available room in October compared with a year earlier. Tourism activity was solid in Montana, with October visits to Glacier National Park seeing a 9 percent increase. Total enplanements at Montana's two largest airports were also up 9 percent over a year earlier. Attendance at national parks elsewhere in the District were mixed. Total visits in October were down at Mount Rushmore, as well as at Pictured Rocks in Michigan's Upper Peninsula, and vehicle crossings at the U.P.'s Mackinac Bridge have been lower this fall compared with a year earlier. Construction and Real Estate Commercial construction activity grew moderately since the last report. Industry data showed that total construction spending in October was higher across much of the District compared with a year earlier. Industry data showed that both new commercial projects and total active construction projects in the District as of early November were slightly higher than a year ago. However, there was also some evidence that the number of active projects may be elevated to some degree by the inability of construction firms to find available labor. Overall, commercial permitting in October was strong in Minneapolis-St. Paul, but otherwise mixed among the District's other metro markets. Several industry contacts in Minneapolis-St. Paul said project pipelines were full heading into the end of the year and early part of 2019, and industrial and medical construction sectors were said to be strong. Another construction contact also noted significant activity in the energy segment in Minnesota. Residential construction activity saw moderate growth. October single-family permitting was higher in a notable majority of District metros compared with a year earlier, while multifamily permitting was mixed. Commercial real estate activity was mixed since the last report. In Minneapolis-St. Paul, industrial and multifamily sectors both continued to show healthy leasing demand, with low vacancy rates despite significant new construction. However, both retail and office vacancy rates have been increasing. Several national retailers announced closures in Minnesota, and one specialty retailer announced the closure of eight stores in the state. Consumer shifts to online retailers have contributed to rising vacancy rates in retail space, but have also contributed to lower industrial vacancies due to increased leasing of industrial warehouse space in Minneapolis-St. Paul. Residential real estate activity rose moderately. Closed sales in October were mostly higher compared with a year earlier across most of the District. October home sales were particularly strong in western and northern counties of Wisconsin. Sales in Montana's larger markets were mixed, but softer overall. Manufacturing District manufacturing activity increased modestly since the previous report. An index of manufacturing conditions indicated increased activity in October compared with a month earlier in Minnesota and the Dakotas. An industrial equipment producer announced a large expansion that would nearly double capacity at a plant in Minnesota. However, multiple contacts have reported putting capital spending plans on hold due to uncertainty in their outlooks. Agriculture, Energy, and Natural Resources District agricultural conditions remained weak. According to results from the Minneapolis Fed's third- quarter survey of agricultural credit conditions, roughly three in five lenders surveyed reported that farm incomes decreased in the third quarter relative to a year earlier, while a similar proportion reported decreased capital spending. While early indications were for very strong production in much of the District, in some areas heavy rains and unseasonably cold weather were complicating harvests. District oil and gas exploration activity as of late November increased moderately relative to the last report. North Dakota oil production increased to a new record in September. A major natural gas processing plant began operations in North Dakota. TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: January 3, 2019 th RE: Letter of Intent (LOI) to Purchase Real Estate at 8620 100 Street S. Background As part of our shovel ready site certification by Xcel Energy in July of 2018 the City of Cottage Grove had a meeting to discuss a proposed project called Project Viking. Project Viking was a company looking for 8-10 acres of heavy industrially zoned land. Project Viking made it clear that they were searching for a site throughout Minnesota, Iowa and Wisconsin expand their Midwest operations. Due to the nature of the business 9 acres of the 24.5- th acre parcel just east of 100 Street South and Jamaica Avenue South zoned I-3 Heavy Industrial was selected to be the best fit for the potential project. After reviewing numerous sites across the Midwest, Project Viking selected Cottage Grove as the site for their new facility contingent upon the necessary approvals by the EDA, Planning Commission and City Council. As a result, Project Viking became known as Airgas USA LLC an international company that specializes in industrial, medical and specialty gases generally delivered via cylinder form. Discussion On January 3, 2019 the City received an LOI from Airgas USA LLC to work exclusively with Figure 1. Proposed project area the EDA on a purchase agreement for the proposed project site, shown in Figure 1. Airgas USA LLC has requested business subsidy assistance. The of Minnesota’s Department of Employment and Economic Development has offered assistance through the Minnesota Investment Fund and Job Creation Fund. Additionally, the City of Cottage Grove has offered assistance to the project in the form of utility improvements, waiver of development fees and Economic Development Authority January 3, 2019 Page 2 of 2 lowered land price. Full project specifications will be presented to the EDA and City Council based upon the tentative schedule below: Economic Development Authority Jan. 8, 2019 - Letter of Intent Feb. 13, 2019 – Resolution of support for the Minnesota Job Creation Fund PUBLIC HEARING – Purchase Agreement, Business Subsidy Agreement and Minnesota Investment Fund Planning Commission Feb. 25, 2019 – PUBLIC HEARING - Conditional Use Permit, Variances (Height and Building Materials) City Council March 20, 2019 – Council approval of: Business Subsidy Agreement Purchase Agreement Minnesota Investment Fund Job Creation Fund Conditional Use Permit Variances Recommendation Authorize the Executive Director to execute the Letter of Intent (LOI) with Airgas USA LLC for the th purchase of 9 acres of property in the Cottage Grove Industrial Park at 8620 100 Street. Attachment Letter of Intent from Airgas USA LLC TO: Economic Development Authority FROM: Christine Costello, Economic Development Director DATE: January 2, 2019 RE: Creation of a TIF District (No. 1-19) for Up North Plastics Background Up North Plastics located at 9480 Jamaica Avenue South has been in the Cottage Grove Business Park since 1981. Up North Plastics produces agricultural plastics and construction film at the facility. Up North Plastics is located on 88 acres and currently includes a 451,000 square foot manufacturing and warehouse facility and employs 252 full-time employees. Up North Plastics Facility Up North Plastics has seen tremendous success in their business and they are looking to capitalize on that success by potentially adding an additional 428,353 square foot facility to their site and employ an additional 200 employees. Up North Plastics has considered Cottage Grove as well as other states located in the south and western United States. Up North Plastics is interested in the Cottage Grove location due to the existing facility location that they can benefit from as well as the incentives offered by the State of Minnesota and the City of Cottage Grove to locate their proposed expansion in our community. Economic Development Authority January 2, 2018 Page 2 of 4 View on CP Rail Line looking towards Hastings Proposed Building Addition Economic Development Authority January 2, 2018 Page 3 of 4 Discussion Business Subsidy Agreement Up North Plastics, Inc. when considering their options for expansion were looking for the opportunity to lower costs through business subsidies. The City of Cottage Grove determined the project met the Business Subsidy Policy following objectives: a. Encourage development (Business Park) in areas per the goals and visions established by the City Council and EDA; b. Preserve the local tax base and improve the general economy and vitality of the City; c. Offset increased costs for development over and above the costs that a developer would incur in normal development (determined as part of but-for analysis); d. Provide the highest and best desired use for the property; and e. Afford maximum opportunities, consistent with the needs of the City as a whole, for the redevelopment of the area by private enterprise. As part of the business subsidy incentives offered by the State of Minnesota and the City of Cottage Grove Up North Plastics has applied for two of the State’s business finance programs, Minnesota Investment Fund (MIF) and Job Creation Fund (JCF). The State’s MIF program provides financing to help add new workers and retain high-quality jobs. The program also focuses on industrial, manufacturing and technology-related industries and aims to increase the local and state tax base and improve economic vitality. The Stat’s JCF program provide financial incentive to new and expanding businesses that meet certain job creation and capital investment. The City will be responsible for submitting reports and monitoring these programs for the State. The City of Cottage Grove has participated in these programs previously with other Business Park businesses such as American Logistics and Renewal by Andersen. The incentive offered from the City is in in the form of tax increment financing (TIF) to finance the costs related to the development of the proposed new facility at Up North Plastics. The TIF would be an Economic Development TIF District with a life of nine years. Up North Plastics has submitted a business subsidy application which has been reviewed by our financial advisors, Ehlers Inc., to meet the “but for” analysis and statutory qualifications. Tax Increment Financing (TIF) Agreement Up North Plastics, Inc. submitted to the City of Cottage Grove’s financial consultant, Ehlers, Inc. the project costs, plans for the project, three years of financial statements and a preliminary financial commitment from its bank. Through Ehlers review of the project the determination was made the project met the “but for” test for tax increment financing (TIF). To initiate the process of th establishing the TIF district the EDA at their October 9 meeting requested 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. 1-19. In November 2018, the Cottage Grove Planning Commission reviewed the program modification and TIF Plan to make sure the project was consistent with the City of Cottage Grove 2030 Comprehensive Plan, and voted 9-to-0 to approve that TIF District No. 1-19 was consistent with the 2030 Comprehensive Plan. The Cottage Grove City Council will approve the establishment of Tax Increment Financing District No. 1-19 at their January 16 meeting. Approval of the EDA’s action will be contingent upon Council’s approval on January 16th. Economic Development Authority January 2, 2018 Page 4 of 4 A Contract for Private Development is the formal contract between the City of Cottage Grove EDA and Up North Plastics, Inc., that defines the terms, agreements, improvements and restrictions that must be made by Up North Plastics, Inc. in order to receive annual distributions of tax increment over nine years, totaling $891,675, which provides a pay as you go amount of approximately $68,259 in financial assistance. If either party breaks the agreement at any time, the agreement sets the process for default. Interfund Loan The creation of Tax Increment Financing District No. 1-19 at the January 16, 2019 City Council meeting will authorize the EDA to use tax increment to pay for certain costs identified collectively in the TIF Plan as qualified costs, which may be financed on a temporary basis from EDA funds available for such purposes. Qualified costs are set in the TIF Plan that was created as part of TIF District No. 1-19. Qualified costs include site improvements/preparation, public utilities, other qualifying improvements, interest and administrative costs. The resolution authorizing an interfund loan allows for up to $20,000 from the City of Cottage Grove’s Future Economic Development Fund be transferred to the EDA’s TIF Fund to pay for a portion of those qualified costs. As the City of Cottage Grove EDA receives tax increment revenue from the TIF District No. 1-19 or other revenue derived from the project, the EDA TIF Fund will repay the Interfund Loan to the City of Cottage Grove’s Future Economic Development Fund. Recommendation By motion: A. Authorize the contract for private development by and between the Cottage Grove Economic Development Authority and Up North Plastics, Inc., and Mars II, Inc. B. Approve the resolution authorizing an interfund loan for advance of certain costs in connection with Tax Increment Financing District No.1-19 (Up North Plastics, Inc.) Attachment 1. Contract for Private Development between the EDA and Up North Plastics, Inc., and Mars II, Inc. 2. Resolution for Interfund Loan COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2019-XXX RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-19 (UP NORTH PLASTICS, INC.) BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Cottage Grove Economic Development Authority (the “EDA”) as follows: Section 1. Background. 1.01. The EDA has heretofore approved the establishment of Tax Increment Financing District No. 1-19 (Up North Plastics, Inc.) (the “TIF District”) within Development District No. 1 (the “Project”), and has adopted a Tax Increment Financing Plan (the “TIF Plan”) for the purpose of financing certain improvements within the Project. 1.02. The EDA is authorized to use tax increment to pay for certain costs identified in the TIF Plan, including site improvements/preparation, public utilities, other qualifying improvements, interest and administrative costs (collectively, the “Qualified Costs”), which costs may be financed on a temporary basis from EDA funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the city of Cottage Grove (the “City”) is authorized to advance or loan money from any fund from which such advances may be legally authorized in order to finance the Qualified Costs. 1.04. The EDA has proposed to borrow funds from the City’s Future Economic Development Fund in the amount of up to $20,000.00 to pay a portion of the costs of the Qualified Costs (the “Interfund Loan”). Such funds are proposed to be deposited to the EDA’S TIF Fund and disbursed to pay a portion of the Qualified Costs. As the EDA receives tax increment revenues from the TIF District or other revenues derived from the Project, it will repay the Interfund Loan to the City. 1.05. It is expected that the City Council of Cottage Grove will adopt a resolution on January 19, 2019, approving the terms of the Interfund Loan to be made to the EDA. Section 2. Terms of Interfund Loan. 2.01. The City shall advance $20,000.00 from the Future Economic Development Fund to the EDA to be used in accordance with the terms herein. The EDA shall reimburse the City for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4 percent and will not fluctuate. 1 521909v1 CT165-54 2.02. Principal and interest (“Payments”) on the Interfund Loan shall be paid semi-annually on each February 1 and August 1 (each a “Payment Date”), commencing on the first Payment Date on which the EDA has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the EDA, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from “Available Tax Increment,” which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director of the EDA, generated in the preceding six months with respect to the property within the TIF District and remitted to the EDA by Washington County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended. Payments on the Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the EDA without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the EDA in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the EDA. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The EDA shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may amend the terms of this Interfund Loan, with permission from the EDA, at any time by resolution of the City Council, including a determination to forgive all or a portion of the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Interfund Loan Approved. 3.01. The Interfund Loan with the terms set forth in Section 2 hereof is hereby approved subject to the approval of the Interfund Loan by the City Council. 3.02. EDA Staff and officials are hereby authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. Section 4. Effective Date. This resolution is effective upon the date of its approval. 2 521909v1 CT165-54 th Approved by the Board on this 8 day of January 2019. By: Myron Bailey, President Attest: Jennifer Levitt, Executive Director 3 521909v1 CT165-54 To: EDA From: Matt Wolf, Economic Development Specialist Date: January 4, 2019 Subject: Upcoming Events DATE EVENT TIME LOCATION Jan. 8 Norris Square Dedication 9:30 am – 11:00 Norris Square Ceremony (Private)* am Jan. 8 Business After Hours 4:30 pm – 6:00 pm Park Place Sports (Cottage Grove Area Bar Chamber) Jan. 15 PFC Settlement Citizen 1:00 pm – 4:00 pm City Hall and Business Group Jan. 15 Norris Square Grand 2:00 pm – 4:00 pm Norris Square Opening Celebration (Public) Jan. 16 PFC Settlement 9:00 am – Noon City Hall Government and 3M Working Group Jan. 18 Women in Business 7:45 am – 9:30 am City Hall Networking Event Jan. 26 Stone Soup Thrift Shop: Noon – 5:00 pm Park Place Sports Winter Luau Party Bar Jan. 29 Planet Fitness Ribbon Noon – 1:00 pm Planet Fitness Cutting Feb. 6 Coffee’s On Networking 7:45 am – 8:45 am TBD (Cottage Grove Area Chamber) TO: Economic Development Authority FROM: Matt Wolf, Economic Development Specialist DATE: January 3, 2019 RE: Workshop – DARTS Bus Circulator Background In 2017 the City of Cottage Grove did its first Business Retention and Expansion Program. One of the key initiatives that came out of the program was the development of transportation options within the City of Cottage Grove. Initially research was focused on transportation from St. Paul to Cottage Grove and vice versa for workforce. However due to required ridership numbers and route requirements it became apparent that workforce transportation would have to wait until the Bus Rapid Transit (BRT) stations were put in place as part of the Red Rock Corridor project. The research however did point to a need for senior transportation within our community to access retail, health and senior programing services. As a result, the City of Cottage Grove setup a meeting with DARTS a nonprofit organization that provides professional services for older adults. Communities such as Hastings, Stillwater, Lakeville, West St. Paul and others have used DARTS services to setup once a week transportation loops for seniors in their communities. Discussion Discuss the possibility of establishing a DARTS Circulator Bus in the City of Cottage Grove. A presentation on DARTS services will include the following: Potential Cottage Grove Locations Potential Map of Bus Route Discussion of Assessment Survey Sponsorship Activity (Cost) Advisory Council