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HomeMy WebLinkAbout3.1 January 8, 2019 EDA Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES EDA Meeting th January 8, 2019 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 8 day of January 2019 at 7:30 a.m 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 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: Jennifer Levitt, City Administrator/Executive Director Robin Roland, Finance Director Christine Costello, Acting Community & Economic Development Director Matt Wolf, Economic Development Specialist Others Present: Jason Aarsvold, Senior Municipal Advisor, Ehlers Michael Falleroni, Manager, Credits and Incentives Consulting, Ryan Jennifer Wenshau, Executive Director, Cottage Grove Area Chamber Kelli Mickelson, Chamber President, Cottage Grove Area Chamber Ben Gathje, Chamber Vice President, Cottage Grove Area Chamber APPROVAL OF MINUTES th 3.1 Approval of the November 13, 2018 EDA Minutes EDA Vice President Dennis motioned to approve the November 13th, 2018 EDA Meeting Minutes. EDA Member Westerberg seconded. Motion passed unanimously (6-to-0 vote) Economic Development Authority – Minutes January 8, 2019 Page 2 of 4 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. 4.2 Project Viking Letter of Intent Economic Development Specialist Wolf gave an overview of Project Viking, which is the name of a project given by Airgas USA who is looking to expand into the Minnesota region with the construction of a new air separation plant. Economic Development Specialist Wolf stated Airgas USA submitted a letter of intent to work exclusively with the EDA on a purchase th agreement for the proposed project sit just west of the intersection of 100 Street and Jamaica Avenue. EDA Member Westerberg asked if the City of Cottage Grove didn’t gain the certificate for shovel-ready status through Xcel Energy, would the City of Cottage Grove have been considered. Economic Development Specialist Wolf stated that although there could still be a chance due to the relationship we have with Xcel Energy, it is not likely as Airgas USA was looking for shovel ready sites. EDA Member Eric Thiewes motioned to authorize the Executive Director to execute the Letter of Intent (LOI) with Airgas USA LLC for the purchase of 9 acres of property in the th Cottage Grove Industrial Park at 8620 100 Street. EDA Member Carey seconded. Motion passed unanimously (6-to-0 vote). PUBLIC HEARINGS 5.1 Up North Plastics Jason Aarsvold the Senior Municipal Advisor from Ehlers gave a presentation on the contract for private development between the City of Cottage Grove Economic Development Authority and Up North Plastics, Inc. as part of establishing Tax Increment Financing (TIF) District 1-19. EDA President Bailey opened the public hearing for public comment to discuss formation of the TIF District 1-19 and the developer’s agreement. No public comments were brought forward, and EDA President Bailey closed the public hearing. EDA Vice President made a motion to authorize the contract for private development by and between the Cottage Grove Economic Development Authority and Up North Plastics, Inc. and Mars II, Inc. EDA Member Myers seconded. Motion passed unanimously (6-to-0 vote). EDA Member Westerberg made a motion to 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.). EDA Member Thiewes seconded. Motion passed unanimously (6-to-0 vote). Economic Development Authority – Minutes January 8, 2019 Page 3 of 4 OTHER BUSINESS 6.1 Calendar EDA President Bailey mentioned the upcoming ribbon cuttings/grand openings for Norris Square (Jan. 8), Sushi Café (Jan. 12) and Planet Fitness (Jan. 29) as well as the Business After Hours event hosted by the Cottage Grove Area Chamber on Jan. 8 at 4:30 pm. 6.2 EDA Comments EDA Vice President Dennis asked for an accounting of all EDA owned land in the City of Cottage Grove and their estimated values. 6.3 Response to Previous EDA Comments None WORKSHOP The EDA adjourned to the City Hall St. Croix Room for two workshops that were open to the public. 7.1 DARTS Bus Circulator Presentation Economic Development Specialist Wolf gave a presentation on a once a week bus circulator through a company called DARTS. Economic Development Specialist Wolf stated DARTS is a nonprofit organization that offers a service called Bus LOOP Transportation offering scheduled stops that are targeted towards senior citizens, so they can access the community for retail, restaurants, health services and other activities. Economic Development Specialist Wolf said the service costs $25,000 a year for a once a week route in the community and cost is split between community partners and sponsors that help pay the costs to offer the service in the community. The EDA was not asked to make any formal motion or approval for the process but was overall receptive to the project. Staff will begin working on the next steps of forming an advisory committee and carrying out a needs assessment survey with DARTS. 7.2 Lodging Tax Discussion – Cottage Grove Chamber of Commerce Cottage Grove Area Chamber of Commerce Executive Director Jennifer Wenshau, President Kelli Mickelson and Vice President Ben Gathje were present to discuss the idea of the Cottage Grove Area Chamber of Commerce forming a new 501c6 Cottage Grove Area Convention and Visitor Bureau and use the revenue from a potential new Lodging Tax to operate the organization. Cottage Grove Area Chamber of Commerce Executive Director Wenshau presented a sample operating budget for the Visitor’s Bureau that was put together taking potential lodging tax revenue estimates. EDA President Bailey questioned how the Visitor’s Bureau could be setup to best be equitable with the cities that were providing the revenue versus cities those that were not providing revenue and how to market those communities in an equitable way. Chamber Executive Director Wenshau expressed similar concern and stated the Visitor Board composition would help to guide marketing in way that was equitable and further define how marketing is done for the organization. Economic Development Authority – Minutes January 8, 2019 Page 4 of 4 EDA Vice President Dennis stated that if the Visitor’s Bureau were created and used the lodging tax revenue that it must be done in a way that creates stability for the Visitor’s Bureau moving forward and allows all parties to speak to the benefits of the creation of the Visitor’s Bureau for all the communities involved. Chamber President Mickelson stated that was one of the benefits of completely separating the Visitor’s Bureau from the Chamber so there was no conflict of interest between the Chamber and the newly formed Visitor’s Bureau. Chamber President Mickelson said this would allow for the Visitor’s Bureau to not be affected by any financial issues with the Chamber and allow it to operate without any influence from the Chamber of Commerce. The EDA was not asked to make any formal motion or approval for the process. EDA President Bailey asked if the Letter of Intent and ordinance would be brought before the EDA meeting in February. Economic Development Specialist Wolf stated they would work with the Chamber to get a complete Letter of Intent for the February Meeting. AJOURN EDA Vice President Dennis made a motion to adjourn. EDA Member Westerberg seconded. The meeting adjourned at 8:35 a.m. (6-to-0 vote) Respectfully Submitted, Matt Wolf Economic Development Specialist