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HomeMy WebLinkAbout3.1 June 18, 2019 EDA Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES Special EDA Meeting June 18, 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 the18 day of June 2019 at 7:30 a.m. CALL TO ORDER The meeting was called to order at 7:30 a.m. by EDA Vice President Dennis. ROLL CALL Members Present: Chris Carey, EDA Member Steve Dennis, EDA Vice President Dan Myers, EDA Member Rachel Smoot, EDA Member Eric Thiewes, EDA Member Ramona Westerberg, EDA Member Members Absent: Myron Bailey, EDA President Staff Present: Jennifer Levitt, EDA Executive Director/City Administrator Robin Roland, Finance Director Matt Wolf, Economic Development Specialist Others Present: Ernie Swanson, Pizza Ranch Franchisee Phil Cattanach, Opus Development Linda Larson, Renewal by Andersen APPROVAL OF MINUTES th 3.1 Approval of the May 14, 2019 EDA Minutes th EDA Member Thiewes motioned to approve the May 14, 2019 EDA Meeting Minutes. EDA Member Westerberg seconded. Motion passed unanimously (6-to-0 vote) BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry Economic Development Authority – Minutes June 18th, 2019 Page 2 of 4 Economic Development Specialist Wolf gave an update on the new business and projects occurring in Cottage Grove. 4.2 Letter of Intent with Pizza Ranch of Cottage Grove LLC Economic Development Specialist Wolf presented on the Letter of Intent between the City of Cottage Grove and Pizza Ranch of Cottage Grove LLC to purchase the EDA owned land at Hardwood Avenue and Harkness Avenue. EDA Member Westerberg asked where the closet locations of Pizza Ranch were to this potential site. Pizza Ranch Franchisee Ernie Swanson stated there was one in Oak Park Heights and one in Maplewood as well. Pizza Ranch Franchisee Ernie Swanson as the future potential owner of the property presented the history of his family business and that they currently own two other Pizza Ranch locations in the metro area. EDA Member Carey stated his only concern with the Letter of Intent was the reduction in purchase price to $600,000 from $650,000. EDA Vice President Dennis requested EDA Executive Director/City Administrator Levitt speak on why the price was reduced. EDA Executive Director/City Administrator Levitt stated that the City of Cottage Grove pushed for a hotel at the site but due to downturn in economic conditions and an overall lack of interest from the hotel sector the City of Cottage Grove had to look for a different user. EDA Executive Director/City Administrator Levitt additionally stated that a Pizza Ranch meets their strategic plan for the area moving forward, that Pizza Ranch has indicated they have some additional hardships with grading on the site which is why they are asking for a reduced land price, and finally with the development fees being paid Pizza Ranch will be paying nearly $650,000 the original asking price of the land. EDA Vice President Dennis stated that the City of Cottage Grove was looking forward to getting the parcel back on the tax rolls for future revenue in the community. EDA Member Carey motioned to authorize the EDA Executive Director to execute the Letter of Intent (LOI) with Pizza Ranch of Cottage Grove, LLC for the sale of the 1.67-acre EDA-owned parcel of land north of 7350 Hardwood Court. EDA Member Westerberg seconded the motion. Motion passed unanimously (6-to-0) 4.3 Purchase Agreement for 7470 East Point Douglas Rd. Economic Development Specialist Wolf presented on the EDA purchasing the former transmission shop at 7470 East Point Douglas Road for a price of $315,000. EDA Member Thiewes asked what the future for the building after it were was bought by the EDA. Economic Development Specialist Wolf stated they would discuss the site with a number of potential developers and gauge their interest and stated most likely the building will have to be demolished for future retail use. EDA Member Westerberg inquired if there was additional testing or clean-up had to occur as a result being a former gas station and transmission shop. Economic Development Specialist Wolf stated that the Minnesota Pollution Control Agency has tested the site and stated via letter no additional remediation needed to occur on site. Economic Development Authority – Minutes June 18th, 2019 Page 3 of 4 EDA Vice President Dennis stated that this is an excellent opportunity for the EDA to take ownership of a site that can be turned around and redeveloped for a use more consistent with the zoning requirements. EDA Member Thiewes motioned to approve the resolution approving the purchase of property from A2Z Commercial Holding, LLC for development purposes. EDA Member Myers seconded the motion. Motion passed unanimously (6-to-0). PUBLIC HEARINGS 5.1 Opus Development Company, LLC Economic Development Specialist Wolf presented the need to rescind former resolution 2019- 005 and purchase property from WAG Farm Inc. and then sell the land to Opus Development Company for the development of a 350,000 square foot industrial facility. There were no comments from the EDA. EDA Vice President Dennis opened the public hearing for comment. Phil Cattanach the Senior Director for Opus Development spoke about their excitement for the project and the support they have received from the City of Cottage Grove. EDA Vice President Dennis closed the public hearing. EDA Member Carey motioned to approve the resolution rescinding resolution 2019-005 and approving the purchase of property from WAG Farms Inc. et al and sale of property to Opus Development Company, LLC for development purpose subject to minor modifications by the City Attorney. EDA Member Thiewes seconded the motion. Motion passed unanimously (6-to-0). 5.2 Conveyance of Outlots to the City of Cottage Grove Economic Development Specialist Wolf presented on the need to convey two outlots that are being used as stormwater ponds in the business park from the EDA to the City of Cottage Grove. EDA Vice President Dennis opened the public hearing for comment. There were no comments made and EDA Vice President Dennis closed the public hearing. EDA Member Myers motioned to approve the resolution approving the conveyance of property from the Cottage Grove Economic Development Authority to the City of Cottage Grove for use as a stormwater pond. EDA Member Smoot seconded the motion. Motion passed unanimously (6-to-0). OTHER BUSINESS 6.1 Calendar EDA Vice President Dennis spoke about the upcoming events happening at River Oaks. 6.2 EDA Comments EDA Vice President Dennis welcomed Rachel Smoot to the EDA. EDA Member Smoot gave a brief introduction on herself and her time in the City of Cottage Grove. Economic Development Authority – Minutes June 18th, 2019 Page 4 of 4 EDA Vice President gave an overview on demographics in the City of Cottage Grove that he received from the Metropolitan Council. 6.3 Response to Previous EDA Comments WORKSHOP None AJOURN EDA Member Thiewes made a motion to adjourn. EDA Member Westerberg seconded. The meeting adjourned at 8:06 a.m. (6-to-0 vote) Respectfully Submitted, Matt Wolf Economic Development Specialist