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HomeMy WebLinkAbout3.1 March 10, 2020 EDA Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES EDA Meeting March 10, 2020 Pursuant to due call and notice thereof, a meeting of the Economic Development Authority was held at th Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove, Minnesota 55016 on the 10 day of March 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: Steve Dennis, EDA Vice President Chris Carey, EDA Member Dan Myers, EDA Member Eric Thiewes, EDA Member Members Absent: Myron Bailey, EDA President Rachel Smoot, EDA Member Staff Present: Jennifer Levitt, EDA Executive Director/City Administrator Robin Roland, Finance Director Christine Costello, Economic Development Director Matt Wolf, Economic Development Coordinator Others Present: Della Kolpin, dk design & development group Kyle Didier, Tyme Holdings Katelyn Murray, North Shore Development Partners APPROVAL OF MINUTES 3.1 Approval of the January 14, 2020 EDA Minutes EDA Member Thiewes motioned to approve the January 14, 2020 EDA Meeting Minutes. EDA Member Myers seconded. Motion passed unanimously (4-to-0 vote) BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry Economic Development Authority – Minutes March 10, 2020 Page 2 of 3 Economic Development Coordinator Wolf gave an overview of the various projects that are currently occurring throughout the City of Cottage Grove as related to Economic Development. 4.2 Vacancy Rate Update Presentation Economic Development Coordinator Wolf gave an update on the current vacancy rate in the City of Cottage Grove. Economic Development Coordinator Wolf stated that the current retail vacancy rate for Cottage Grove is 6.2% versus 7.5% for the Twin Cities Metro and the current office vacancy rate for Cottage Grove is 7.4% versus 11.9% for the Twin Cities Metro. EDA Vice President Dennis stated that the experts state around a 6% retail vacancy rate is a healthy vacancy rate and inquired if Economic Development Coordinator Wolf could explain why restricted covenants or easements are put in place for buildings or properties. Economic Development Coordinator Wolf stated that restricted covenants or easements are put in place by businesses when signing their leases or purchasing a property. Economic Development Coordinator Wolf explained these restrictions are put in place by a business so they can control what kind of businesses or competition occurs around them, however they often result in the remainder of the property or building being more difficult to develop or lease in the future. Economic Development Coordinator Wolf stated this can result in buildings sitting vacant for th longer as is the case with 80 Street Crossing. PUBLIC HEARINGS th 5.1 80 and Hemingway, LLC th Economic Development Director Costello presented on the sale of EDA property at 7516 80 th Street South and a development agreement for a market rate apartment project with 80 and Hemingway, LLC. EDA Member Thiewes asked the developer what they thought the rents would be for the different unit types in the building. North Shore Development Partners Katelyn Murray stated that no rates have been set but will be determined based on comparable rents in West St. Paul, Woodbury, Inver Grove Heights, and Mendota Heights. EDA Vice President Dennis opened the public hearing for comment. No comments were made during the public hearing and EDA Vice President closed the public hearing. EDA Member Thiewes motioned to authorize the contract for private development by and th between the Cottage Grove Economic Development Authority and 80 and Hemingway, LLC subject to minor modifications by City Attorney. EDA Member Carey seconded. Motion passed 4-to-0. th EDA Member Myers motioned to approve the resolution approving the sale of 7516 80 th Street South from Cottage Grove Economic Development Authority to 80 and Hemingway, LLC for development purposes subject to minor modifications by City Attorney. EDA member Thiewes seconded. Motion passed 4-to-0. OTHER BUSINESS 6.1 Calendar Economic Development Authority – Minutes March 10, 2020 Page 3 of 3 EDA Vice President Dennis highlighted the Business After Hours event at Muddy Cow that is done by the Cottage Grove Area Chamber of Commerce from 4:30 pm until 6:00 pm tonight (March 10, 2020) 6.2 EDA Comments None 6.3 Response to Previous EDA Comments None WORKSHOP None AJOURN EDA Member Carey made a motion to adjourn. EDA Member Myers seconded. The meeting adjourned at 7:55 a.m. (4-to-0 vote) Respectfully Submitted, Matt Wolf Economic Development Coordinator