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HomeMy WebLinkAbout3.1 Approval of June 9, 2020 EDA Meeting Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES EDA Meeting June 9, 2020 Pursuant to due call and notice thereof, a meeting of the Economic Development Authority was virtually th held via Zoom at https://cottagegrovemn.zoom.us/j/91575887526 on the 9 day of June at 7:31 a.m. CALL TO ORDER The meeting was called to order at 7:31 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 Erin Pash, EDA Member Rachel Smoot, EDA Member Eric Thiewes, EDA Member Members Absent: None 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: David Reller, Senior Real Estate Manager Colliers International APPROVAL OF MINUTES 3.1 Approval of the May 12, 2020 EDA Meeting Minutes EDA Member Carey motioned to approve the May 12, 2020 EDA Meeting Minutes. EDA Member Pash seconded. Motion passed unanimously (7-to-0 vote) 3.2 Approval of the June 2, 2020 Special EDA Meeting Minutes EDA Member Carey motioned to approve the June 2, 2020 Special EDA Meeting Minutes. EDA Vice President Dennis seconded. Motion passed unanimously (7-to-0 vote) Economic Development Authority – Minutes June 9, 2020 Page 2 of 4 BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry 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 Award Small Business Emergency Assistance Program Grants Economic Development Director Costello presented on the grants submitted for the Small Business Assistance Grant Program from Carbone’s Kitchen and Pub, Cedarhurst, Cottage Grove Florist, Hound Around, and Salon 80 Hair Studio for a total of $50,000. EDA Vice President Dennis motioned to authorize the approval of five (5) Small Business Emergency Assistance Grants each for $10,000 to Carbone’s Kitchen and Pub, Cedarhurst, Cottage Grove Florist, Hound Around, and Salon 80 Hair Studio totaling $50,000. EDA Member Thiewes seconded. Motion passed unanimously (7-to-0 vote). 4.3 Façade Improvement Applications Economic Development Coordinator Wolf presented the Façade Improvement Program Applications submitted for 2020 and the desire to expand the program by $50,000 for a total of three awards. EDA President Bailey stated that even under the current economic conditions that commercial property owners are looking to improve their businesses and that is why the additional $50,000 is being requested. EDA Vice President Dennis inquired about the scope of the parking lot project as part of the Jamaica Square application. Economic Development Coordinator replied that he did not have the quote in front of him regarding the project but believed it was a mill and overlay of the parking lot. EDA Vice President Dennis asked based on the current conditions of the parking lot how long the repairs would last. City Administrator Levitt stated that given current conditions the parking lot would most likely at maximum last five years, but it depended on how much traffic used the road. EDA Vice President Dennis asked Colliers International Senior Real Estate Manager David Reller, who represents the Shoppes at Gateway North, why they are proposing redoing the parapets and reducing the elevation. Senior Real Estate Manager Reller replied that the work that is being proposed is currently what the market is seeing in multi-tenant buildings with a move to a more modern architecture style. EDA Member Carey inquired if the Façade Improvement Program applications are required to show that the money is needed to get support, similar to tax increment financing. Economic Development Coordinator Wolf replied that tax increment financing projects are required to pass the “but for” test meaning that but for the use of public assistance funds the projects would not develop. Economic Development Coordinator Wolf stated that currently the program does not have such a clause or guideline as part of the program. EDA Member Thiewes motioned to approve the Culvers of Cottage Grove project with an award letter and a contract for $25,000 as part of the Façade Improvement Grant Program. EDA Member Myers seconded. Motion passed unanimously (7-to-0 vote). EDA Member Pash motioned to authorize the approval of an additional $50,000 of funding for the program through the EDA Trust Fund with an award letter and contract Economic Development Authority – Minutes June 9, 2020 Page 3 of 4 for $25,000 to Jamaica Plaza LLC and $25,000 to Crown Estates Family, LLP (Shoppes at Gateway North). EDA Member Smoot seconded. Motion passed unanimously (7-to-0 vote). 4.4 9165 and 8991 West Point Douglas Property Appraisal Economic Development Coordinator Wolf presented on the request to have the properties of 9165 and 8991 West Point Douglas Road appraised by Patchin Messner Valuation Counselors for $4,500. EDA President Bailey stated that in the past the EDA has always looked to purchase distressed properties or non-conforming use properties in the community. EDA President Bailey inquired if the appraisal process would include checking for environmental issues related to the sites. City Administrator Levitt stated that the if the EDA made an offer it would be contingent on a environmental phase 1 being completed on the site and stated that the appraisal process would not include that work. EDA President Bailey asked if there was money available to the City for environmental clean-up at the sites if there were environmental issues found at the sites. City Administrator Levitt stated there are opportunities for clean-up assistance through the county and the state, which the City would apply for assistance. EDA Vice President Dennis inquired from EDA Member Smoot if Zillow was used as a tool for determining price in the real estate market as the property listed at 8991 West Point Douglas Road was currently listed for over $400,000. EDA Vice President Dennis stated that based on the SWOT analysis for the properties and the limited funds received for the EDA Trust Fund each year he would prefer to let the private market develop the Langdon Village Area. EDA President Bailey stated that in past there were opportunities to purchase some of the land in the Langdon Village area, but the EDA did not move forward. EDA President Bailey stated that at this point the appraisals would give the opportunity to the EDA if a feasible offer could be made on the properties. EDA Member Smoot stated that she would be willing to run a market on the property at 8991 West Point Douglas and that Zillow is currently not a tool used by real estate agents. EDA Member Smoot motioned to authorize the appraisal of 9165 and 8991 West Point Douglas by Patchin Messner Valuation Counselors for the total cost of $4,500 to be funded by the EDA Trust Fund. EDA Member Thiewes seconded. Motion passed unanimously (7-to-0). EDA Member Pash left the meeting. PUBLIC HEARINGS 5.1 None OTHER BUSINESS 6.1 Calendar EDA President Bailey pointed out that the EDA has a special meeting on Tuesday, June 30. Economic Development Director Costello commented that the purpose of the EDA Special Meeting was regarding the third round of the Small Business Emergency Assistance Grant Program. Economic Development Authority – Minutes June 9, 2020 Page 4 of 4 6.2 EDA Comments EDA Vice President Dennis asked if there were additional businesses that applied for the next round of the Small Business Emergency Assistance Grant Program. Economic Development Director Costello stated that currently there are a few applications that have been submitted for review and as the deadline approaches believes more applications will be received. 6.3 Response to Previous EDA Comments None WORKSHOP None AJOURN EDA Vice President Dennis made a motion to adjourn. EDA Member Smoot seconded. The meeting adjourned at 8:33 a.m. (7-to-0 vote) Respectfully Submitted, Matt Wolf Economic Development Coordinator