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HomeMy WebLinkAbout3.1 Approval of November 10, 2020 EDA Meeting Minutes CITY OF COTTAGE GROVE E CONOMIC D EVELOPMENT A UTHORITY MINUTES EDA Meeting November 10, 2020 Pursuant to due call and notice thereof, a meeting of the Economic Development Authority was virtually held via Zoom at https://cottagegrovemn.zoom.us/j/91575887526 on the 10th day of November, 2020, 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 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 Others Present: None APPROVAL OF MINUTES 3.1 Approval of the August 8, 2020 EDA Minutes EDA Member Carey motioned to approve the August 8, 2020 EDA Meeting Minutes. EDA Member Pash seconded. Director Costello called the roll: EDA President Bailey-Aye; EDA Member Carey-Aye; EDA Vice President Dennis-Aye; EDA Member Myers-Aye; EDA Member Smoot-Aye; EDA Member Thiewes-Aye; EDA Member Pash-Aye. Motion passed unanimously (7-to-0 vote Economic Development Authority – Minutes November 10, 2020 Page 2 of 6 BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry Director Costello gave the Beige Book Report: Employment was mixed since the last report, overall conditions remain quite volatile. Initial unemployment claims over the most recent 6- week period (through mid-September) fell significantly compared to the previous reporting period, but remain elevated compared to last year. Wages pressures and price pressures were moderate. There was growth in manufacturing, residential construction, and real estate. Consumer spending and tourism were flat. Activity slowed for professional services, commercial construction, and real estate. District manufacturing activity increased moderately in the State of Minnesota. There have been some pandemic-related bottlenecks that continue in the supply chain; we’ve heard that from some of our contractors and our building inspectors out in the field, as it’s difficult to get lumber. Next Beige Book Report is on December 2 so we’ll have that for the December meeting. Director Costello gave construction updates on the following: Grove80 Apartments: Underground footings and foundation have been inspected and approved. The building permit for construction of the building was issued with a valuation of just over $13 million. The Spancrete panels should arrive next week, so that’s starting to take shape. Up North Plastics: The main building is substantially complete with continued construction on the silos. Some areas will be opening for occupancy in mid-November. The contractor is digging footings for the guard house. Lindgren Dental: Adding a 3,550 square-foot addition to the existing clinic; that will include seven additional treatment rooms and an expanded waiting-room area. They are substantially complete and received a Temporary Certificate of Occupancy (CO) so two of the treatment rooms can open and then they can begin remodeling the waiting room. Air Gas: Permit for Phase II issued for construction of the building, with valuation slightly under $1 million. Inspections continue for footings, foundation, and slab work. River Oaks: A 1,500 square-foot addition to the kitchen and banquet area has been constructed with framing and insulation. Rough-in plumbing and heating inspections will take place this week. Roof has been installed, and contractor is installing face brick and exterior cladding. Washington County Lower Landing Trailhead Building: A 5,892 square-foot building has been constructed. Water service supplied from building to well location, storm pond to storm system completed, and roofing finished. Interior plumbing, electrical, and mechanical rough-in being conducted; well drillers on site this week. Septic tanks have been installed with drain tile. Director Costello noted that Saturday, November 28, is Small Business Saturday. We encourage everyone to get out and shop the local small businesses, especially since they’ve been impacted by COVID. 4.2 BR&E 2020 Results Director Costello gave background information on the BR&E; retaining and expanding businesses is a vital part of economic development. It’s often easier than recruiting new businesses, with businesses wanting to stay and/or expand in the community. 2017: The Cottage Grove BR&E Program began in 2017. At that time we partnered with the University of Minnesota Extension, as they have a strong program. We used their basics to start our program and interviewed 41 businesses (commercial and industrial) with our 20- member volunteer task force. 2017 Projects/Priorities: Marketing; Workforce; Broadband Services; Enforcement; Business Expansion Options. 2017 Outcomes: Cottage Grove Convention and Visitors Bureau; South Washington School District - Inventor Space; Comcast Economic Development Authority – Minutes November 10, 2020 Page 3 of 6 running high-speed internet along 97th Street for businesses; Continuing BR&E program in 2018. 2018: The focus in 2018 was businesses, commercial and industrial, new to the community, or that weren’t part of the 2017 program, with 12 businesses interviewed. 2018 Projects/Priorities: High Speed Internet; Market and Workforce Housing; Commercial Beautification; Code Enforcement Signs. 2018 Outcomes: Start of the Façade Improvement Program in 2019, resulted in approval of four projects totaling $100,000; Marketing Community to High-Density Housing Developers, resulting in the Grove80 Apartments, a 120-unit, four-story building, all market-rate apartments. 2019: The BR&E program was skipped in 2019. 2020: In March, the focus was on 11 Business Park businesses: North Star Sheets; Cottage Grove Auto & Collision; Allina Health; Leafline Labs; Modern Automotive Performance; Aveka Group, 3M; Renewal by Andersen; Innovative Chemical Corporation; Gardenworld; Werner Electric. All interviews were conducted virtually due to the COVID-19 pandemic; results are as follows:  Businesses had a total of 1,782 employees.  Average rate of pay: $18.50/hour.  7 of 11 businesses indicated sales were increasing and 4 indicated sales were stable.  Businesses with increased sales were due to e-commerce changes, resulting from COVID- 19, new marketing efforts, premium products, happy customers, and new facilities.  8 of 11 businesses indicated they planned to increase employees in the next year or more; remaining 3 would have stable employment.  7 of 11 businesses indicated it was hard to find qualified employees due to lack of candidates with qualified technical skills to do the job.  2 of 11 businesses indicated a need for employee housing; the remaining 9 felt there was enough housing.  7 of 11 businesses indicated they are planning major equipment purchases or will renovate/expand their current facilities in the next 1-3 years. 2020 Projects/Priorities: 1) Transportation was the overwhelming need of businesses in the Business Park; they’re looking to find employees from St. Paul and surrounding areas. Potential action steps: Work to fulfill our Bus Rapid Transit need. Various Council Members sit on commissions and the Council works hard to ensure that Cottage Grove is included in any transportation issues. We’re working with Washington County to add a Bus Rapid Transit location at the Shoppes at Cottage View; as that master plan includes housing, a potential Community Center, and commercial venues, it’s a viable place to have Bus Rapid Transit. 2) Housing: Businesses are always looking for housing for all of their employees, from executives to entry-level employees. We’ll continue to market our lifestyle housing. The Community Development Department is developing a comprehensive housing plan, which will most likely be presented at the City’s Strategic Planning session in January, 2021. We’ll continue to promote various housing densities in public and private partnerships. 3) Training: Many businesses expressed the need for customized training programs. We could once again work with the School District to raise awareness of various trades; we’d started that with the Inventor Space. As not all students go to college, there are options at technical schools to learn various trades. We need to continue to offer those opportunities to young people. Work with the School District to provide a post-secondary EMT course, as our Firefighter/EMTs have taken a strong interest in providing this. With the HERO Center, we felt that would be a great partnership. Engage with our Business Park partners to see what kind of training opportunities there are available and connect them with the appropriate facilities that provide those. Creation of a higher-education campus; with the HERO Center, we have the law enforcement aspect, and perhaps there’s something we can do to offer a higher-education component there. Economic Development Authority – Minutes November 10, 2020 Page 4 of 6 4) Commercial: Businesses want more restaurant and hotel options for their employees and clientele that they bring into Cottage Grove. It helps with employee retention and also makes it easier for businesses to conduct their daily operations. Continue to implement the Visitors Bureau and get that going to increase visits; we can also attract businesses through that component, as well as the MNCAR Expo and the ICSC Recon in Las Vegas. Community Factors Survey: This is an additional component of the BR&E where a series of community factors are ranked on a scale of 1 (poor) to 5 (great); the results are used to determine what a business knows about the community and if community factors have an impact on the business. Some businesses skipped questions if they felt they did not have enough information, but each community factor must have at least three businesses respond to be included. Top 3 Factors: Economic Development Authority, Fire Department, and Planning and Zoning. Bottom 3 Factors: Public Transportation, Customized Training Programs, and Cultural Opportunities; so, those bottom three have been given priority for 2020. They were also asked to give their opinion on the strengths and weaknesses of the business climate, with the following results: Strengths: Great City staff; Strong workforce; Low traffic for commute; Good location; Accessibility to airport; Business friendly; Great incentives, utilities, and infrastructure; HERO Center; Room to grow; Strong labor pool; Great high school and partnership; Appreciate the traffic light at 95th Street and Jamaica Avenue; Workforce and overall experience to attract talent; Great communication with the City. Weaknesses: Response from the railroad company and lack of consistent schedule; No public transportation for workforce; Lack of affordable housing/apartments; Need for another hotel; Road construction; Only chain restaurants and no food destinations; Lack of higher end single- family homes and apartments for executives; High taxes/Need to be careful with spending. Moving forward, the 2020 projects and priorities will allow the EDA and City Council to set action steps for 2021 and beyond as part of the City’s Strategic Plan. The 2021 BR&E Program will focus on commercial businesses to see how they are dealing with the COVID-19 pandemic. We hope to interview businesses who received our Small Business Grant and how they’re faring, moving out of the pandemic. Director Costello noted that Matt Wolf had really spearheaded the BR&E project and had interviewed many of the businesses; she appreciated all of his work on this and thanked him. EDA Member Thiewes asked about transportation and adding a Bus Rapid Transit stop at the Shoppes at Cottage View location; he wondered how people would get around Cottage Grove from the bus stops to the businesses. He felt two bus stops were not sufficient to transport people around Cottage Grove. Director Costello stated they’ve been discussing that, including the Park & Ride. Some people come in from St. Paul and can at least make it to the Park & Ride; Renewal by Andersen uses the Metropolitan Council’s Vanpool program, so they have a van come to the Park & Ride to pick up their employees. Some businesses have their employees pick up fellow employees at the Park & Ride. That’s an excellent point and it’s something that we’re working on, how to get people from the Bus Rapid Transit station and the Park & Ride to businesses. That might be a local bus; we started with DARTS, and that’s more senior focused, but perhaps moving forward we need to look at something that’s more community wide, a local bus circulator. We also need to ensure that our community is walkable; for those who can’t walk, we need to get them transportation. EDA President Bailey stated that he’s on the Transportation Board for the Metropolitan Council; unfortunately, the funding dollars get used for Minneapolis-St. Paul or the first-ring suburbs. Economic Development Authority – Minutes November 10, 2020 Page 5 of 6 He’s always tried to be ahead of the problem, rather than having to fix it, but dollars go to those in most dire need and those with the most riders. Since COVID began, transportation may or may not be needed as much, as more people are now working from home. The next year or so will show what effect COVID has had on the transportation model. Right now, if you don’t have a car in Cottage Grove, it’s difficult to get places. We’re obviously working on this but told EDA Member Thiewes that’s a good question on connectivity. 4.3 Update on Small Business Grants Director Costello gave an update on the Small Business Assistance Grant Program, approved by both the EDA and the City Council in May, 2020, in response to the COVID-19 pandemic. The EDA set aside $300,000 from the EDA Trust (not taxpayer dollars) to provide grants, up to $10,000 per business. We issued guidelines and businesses applied, but not as many as we had hoped; so, we made the guidelines less restrictive to allow more to apply. We did three rounds of grants and assisted 19 local businesses with grant funds totaling $181,800. As part of the program, we asked the businesses to use the funds by August 31, 2020, and report to the City Council and the EDA how the funds were used; she displayed the second set of businesses that reported how they’d used the funds. The funds were used for a number of expenses, including business expenses, rent, food products for restaurants, utility bills, payroll, property taxes, etc. Overall, the businesses were very appreciative of the support of the EDA and the City Council in providing the grants, and it really helped them through the months where they couldn’t be in full operation. Right now, there is only one business from which they’re still waiting to hear regarding how they used the funds; as soon as that is received, she’ll report that to the EDA and the City Council. PUBLIC HEARINGS 5.1 No public hearings OTHER BUSINESS 6.1 Calendar None 6.2 EDA Comments EDA President Bailey stated we’re trying to navigate through the COVID situation, yet still offer things for the public to do. Unfortunately, the traditional City tree-lighting ceremony will not be taking place due to COVID and the number of people who normally attend that; the tree will still be lit. However, Molly, Recreation Services Manager with Parks and Recreation, will provide an update to the City Council at our next meeting on some activities that will be available for the public. Lists of people who’ve decorated their homes will be made public, so they can drive around to see them. Cottage Grove street décor will also be put up in the business district in just a few weeks, again to put a smile on faces during these trying times of COVID. EDA President Bailey stated that Council Member Olsen and Council Member Mills were reelected to the City Council; he personally ran unopposed as Mayor, so he is also back on the Council. Senator Karla Bigham remains our Minnesota senator for our area, State Representative Keith Franke will be taking over District 54A from Anne Claflin, and State Representative Tony Jurgens was reelected to represent District 54B. U.S. Representative Angie Craig was reelected to that position, and she’s done a lot of work for our area, so he’s looking forward to working with her. EDA Member Thiewes had mentioned transportation today; Economic Development Authority – Minutes November 10, 2020 Page 6 of 6 EDA President Bailey stated he’d spoke with U.S. Representative Craig about our transportation issues and believes that she will support us with that in 2021. EDA President Bailey stated Cottage Grove, specifically related to housing, isn’t slowing down at all, even during these typically slower months heading into winter. Developers are already planning work on parcels into 2021; so, while 2020 has been a difficult year, from a growth standpoint it’s been good for Cottage Grove. If we can get control over COVID, 2021 will be even better yet. 6.3 Response to Previous EDA Comments None WORKSHOP None AJOURN EDA Member Carey made a motion to adjourn. EDA Member Smoot seconded. Director Costello called the roll: EDA President Bailey-Aye; EDA Member Carey-Aye; EDA Vice President Dennis-Aye; EDA Member Myers-Aye; EDA Member Smoot-Aye; EDA Member Thiewes-Aye; EDA Member Pash-Aye. The meeting adjourned at 8:11 a.m. (7-to-0 vote). Respectfully Submitted, Christine Costello Economic Development Director /jag