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HomeMy WebLinkAbout3.1 02-08-2022 EDA Meeting Minutes CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY ____________________________________________________________________ MINUTES Economic Development Authority (EDA) Meeting February 8, 2022 Pursuant to due call and notice thereof, a meeting of the Economic Development Authority was held on the 8th day of February, 2022, 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 Assistant Mann called the roll: EDA President Bailey-Here; EDA Vice President Dennis-Here; Kyle Knop, EDA Member-Here; Joe Krohn, EDA Member-Here; EDA Member Myers-Here. Members Present: Myron Bailey, EDA President Steve Dennis, EDA Vice President Kyle Knop, EDA Member Joe Krohn, EDA Member Dan Myers, EDA Member Members Absent: Chris Carey, EDA Member Eric Thiewes, EDA Member Staff Present: Jennifer Levitt, EDA Executive Director/City Administrator Robin Roland, Finance Director Jaime Mann, Assistant to the City Administrator Others Present: None. APPROVAL OF MINUTES 3.1 Approval of January 11, 2022 EDA Meeting Minutes EDA Vice President Dennis made a motion to approve the January 11, 2022 EDA Meeting Minutes. Motion was seconded by EDA Member Krohn. Motion passed unanimously (5-to-0 vote). BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry City Administrator Jennifer Levitt stated the economic growth that’s occurring in our region is exciting. She gave the Beige Book Report for January, 2022: Employment: Grew moderately, but there’s still a tighter labor supply stalling what could be stronger growth. Wage Pressures: Remain strong with strong wage growth in construction, manufacturing, and hospitality-tourism. Labor Supply: Was tight, and quit rates continued to trend upward. Price Pressures: Remained elevated from already high levels. Consumer Spending: Grew moderately. Commercial and Residential Construction: Grew moderately. Commercial Real Estate: Grew modestly while slower residential real estate sales occurred, as some of the inventory is actually a little bit lower. Building permits in Cottage Grove are starting to come back at a higher rate. Vacancy Rates: Retail vacancy continues to inch higher, office vacancy rates remain high, and multifamily vacancy rates remained low. Manufacturing Activity: Really increased briskly, and this is evident from our agenda today. Agricultural Conditions: Steady. Administrator Levitt stated the Cottage Grove Convention and Visitors Bureau launched their very first official Visitors Guide, so Discover Cottage Grove is out; it’s available both in hard copy and online. It’s a great resource to check out all the wonderful things here in Cottage Grove of which you might not even be aware. Project Updates: Caribou Cabin: Ribbon cutting took place on February 3; it was exciting to welcome them to the community. Over the weekend, they did a fundraiser for the Friends in Need Food Shelf, and donated $1 for every purchase. So, Caribou is already giving back to our community. North Star Sheets: Their exterior addition is now complete, and underground plumbing, concrete flooring are being done so they can move some of their equipment into that space. American Logistics Services (AGCO): The company is expanding into the newly completed Capp Industries building at 7900 West Point Douglas Road; the plans are for 63,260 square-feet of tenant improvements, for which building permit review has been received. Hy-Vee Convenience Store (Fast & Fresh): The remodel project has started, which includes the addition of cooking equipment to provide hot and fresh Grab ‘N Go products; there’s also new signage on the building. Aggregate Industries: Their 2022 mining permit application was unanimously approved by the Planning Commission. On March 2, the City Council will be looking at backwater mining that’s being proposed, and an application has been made for that. A formal EIS and a scoping EAW decision document will be sent out for publication following that March 2 City Council Meeting. Flint Hills Fire Suppression Building: Applied for a site plan and review to install a new 210 square-foot tank foam building to support a fire suppression system on their property at 6483 85th Street South. The Planning Commission unanimously recommended approval of the site plan review. Van Meter (previously Economic Development Authority - Minutes February 8, 2022 Page 2 of 4 Werner Electric): Applied for a conditional use permit (CUP) to allow an additional 10-foot fence for exterior storage around their property, to screen equipment and trucks, as they’ve had many supply challenges and delays. The Planning Commission unanimously approved the CUP. Park Updates: Oakwood Park Shelter: The footings and foundation are completed. The block bathroom walls and beams were completed, now ready for the roof trusses to be added. 4.2 Letter of Intent (LOI) for 7470 East Point Douglas Road Administrator Levitt stated the City received a LOI from Hang, LLC, dated February 4, 2022, for the purchase of this vacant parcel of approximately 0.54 acres. The LOI includes a purchase prices of $188,179, which is $8 per square foot. This site was previously a transmission shop that was purchased by the EDA, and site cleanup and remediation were completed. The parcel is zoned B-2, Retail Zoning District, with an EDA objective to generate retail sales, services, and restaurant opportunities on this parcel. This site will be the future home of Thai Garden, which is a small, family-owned business. The building shown in the site plan is 3,050 square feet; there will be indoor seating for approximately 100 people and outdoor seating, on a small patio area, for approximately 40 people. With this redevelopment, we knew this site might be challenging, so we anticipate seeing a parking variance or setback variances. It will be a brick building, meeting our Class 1 material objectives for our zoning code. Recommendation: By motion, authorize the EDA President and City Administrator to execute the Letter of Intent with Hang, LLC for the purchase of approximately 0.54 acres located at 7470 East Point Douglas Road at $8 per square foot. EDA Member Myers made a motion to authorize the EDA President and City Administrator to execute the Letter of Intent with Hang, LLC for the purchase of approximately 0.54 acres located at 7470 East Point Douglas Road at $8 per square foot. Motion was seconded by EDA Vice President Dennis. Motion passed unanimously (5-0). 5 PUBLIC HEARINGS 5.1 97th Street and Hemingway Avenue Land Purchase and Sale (Syndica, LLP) and Purchase Agreement Administrator Levitt stated the Business Park is definitely seeing a lot of growth; at our last meeting, we held two similar public hearings for sales of land, and today it will make four different properties within the Business Park that we’re actually selling. As part of buying and selling from WAG, we have two purchase agreements that typically go with that. This parcel is located at 97th Street and Hemingway Avenue. The WAG Properties own 22.4 acres, and the City EDA owns the other 3 acres; so, there’s a combined purchase of those two parcels. This parcel is zoned I-2, and the entity, Syndica, has indicated that their development proposal is fully compliant with the I-2 zoning. The historical buy-and-sell component with WAG requires us to hold a public hearing for the sale of property. We met all of the State Statute requirements for the public hearing notices and the publication. EDA President Bailey opened the public hearing. As no one wished to speak on this item, EDA President Bailey closed the public hearing. Recommendation: Hold the public hearing. By motion: 1) Approve a resolution authorizing the purchase of property from WAG and sale of property to Syndica, LLP for development purposes. 2) Authorize the EDA President and City Administrator to execute the Purchase Agreement with WAG for the purchase of 22.4 acres for development purposes. 3) Authorize the EDA President and City Administrator to execute the Purchase Agreement with Syndica, LLP for the sale of 25.4 acres for development purposes subject to minor modifications by the City Attorney. EDA Member Knop made a motion to approve a resolution authorizing the purchase of property from WAG and sale of property to Syndica, LLP for development purposes. Motion was seconded by EDA Member Myers. Motion passed unanimously (5-0). EDA Member Krohn made a motion to authorize the EDA President and City Administrator to execute the Purchase Agreement with WAG for the purchase of 22.4 acres for development purposes. Motion was seconded by EDA Vice President Dennis. Motion passed unanimously (5- 0). EDA Vice President Dennis made a motion to authorize the EDA President and City Administrator to execute the Purchase Agreement with Syndica, LLP for the sale of 25.4 acres for development purposes subject to minor modifications by the City Attorney. Motion was seconded by EDA Member Myers. Motion passed unanimously (5-0). 5.2 100th and Jamaica Land Purchase and Sale (Ryan Companies) and Purchase Agreement Administrator Levitt stated the specific parcels that we’re looking at today are the 13 acres located at 100th Street and Jamaica Avenue South. As part of this project, there will be a preliminary plat that will actually combine a very small sliver that had been part of Glendenning Road; that will be incorporated into this parcel and sale. We know that the end user will have about a 50,000 square-foot building, which will be compliant with I-1 zoning. Ryan Companies is executing this on behalf of their ultimate end user. The Letter of Intent with Ryan Companies was authorized by the EDA on January 11, 2022, as they’re moving very aggressively to market, to be able to get this building in the ground as soon as possible. As with the other entity with which we just dealt, there is a buying and selling with WAG that requires the public hearing. According to State Statute, we published the notice and provided all legal notifications. EDA President Bailey opened the public hearing. As no one wished to speak on this item, EDA President Bailey closed the public hearing. Recommendation: Hold the Public Hearing. By motion: 1) Approve a resolution authorizing the purchase of property from WAG and sale of property to Ryan Companies for development purposes. 2) Authorize the EDA President and City Administrator to execute the Purchase Agreement with WAG for the purchase of approximately 13 acres for development purposes. 3) Authorize the EDA President and City Administrator to execute the Purchase Agreement with Ryan Companies for the sale of approximately 13 acres for development purposes subject to minor modifications by the City Attorney. EDA Member Knop made a motion to approve a resolution authorizing the purchase of property from WAG and sale of property to Ryan Companies for development purposes. Motion was seconded by EDA Vice President Dennis. Motion passed unanimously (5-0). Economic Development Authority - Minutes February 8, 2022 Page 3 of 4 EDA Member Myers made a motion to authorize the EDA President and City Administrator to execute the Purchase Agreement with WAG for the purchase of approximately 13 acres for development purposes. Motion was seconded by EDA Member Krohn. Motion passed unanimously (5-0). EDA Member Krohn made a motion to authorize the EDA President and City Administrator to execute the Purchase Agreement with Ryan Companies for the sale of approximately 13 acres for development purposes subject to minor modifications by the City Attorney. Motion was seconded by EDA Member Knop. Motion passed unanimously (5-0). 5.3 EDA Easement to the City Administrator Levitt stated members of the EDA are probably wondering what water has to do with the EDA. As we’ve gone through the 3M Settlement related to PFCs in our community, we’ve been allocated nearly $90M for improvements related to water treatment. So, we’ve bought a piece of land at the intersection of 110th Street and Ideal Avenue for our future water treatment plant; as part of that, we need to connect Well 10 with a Raw Water line. The water being pumped from the ground is untreated and would be sent down to the water treatment plant, and then treated water would then be dispersed to residents and businesses. We actually need to construct a Raw Water line to make that connection, and we strategically placed it within the 100-foot setback from the residential area, and the businesses actually have to abide by that setback. So, there’s no impact to that parcel for future development. Syndica is aware that we are proposing to put the easement on the 22 acres and on the 3 acres that the EDA owns; it’s all been disclosed to them as part of the entitlement work, and there are no issues related to the land sale. Legally, we have to hold the public hearing to authorize the EDA to convey an easement to the City for that actual water line. The easement is only for the 3 acres to allow that land to be encumbered with that permanent and temporary construction easement for that water line. Pursuant to State Statute, we have to hold a public hearing, and the necessary notice associated with it has been provided. EDA President Bailey opened the public hearing. As no one wished to speak on this item, EDA President Bailey closed the public hearing. Recommendation: Hold the public hearing. By motion: 1) Approve a resolution authorizing the conveyance of an easement to the City of Cottage Grove. 2) Approve the Permanent Utility Easement and Temporary Construction Easement Agreement with the City of Cottage Grove. EDA Vice President Dennis made a motion to approve a resolution authorizing the conveyance of an easement to the City of Cottage Grove. Motion was seconded by EDA Member Krohn. Motion passed unanimously (5-0). EDA Member Myers made a motion to approve the Permanent Utility Easement and Temporary Construction Easement Agreement with the City of Cottage Grove. Motion was seconded by EDA Member Knop. Motion passed unanimously (5-0). OTHER BUSINESS 6.1 EDA Calendar Mayor Bailey stated there are upcoming City Council Workshops where we’ll be looking at all criteria for our City Ordinances, as they relate to many things, from chickens and ducks to general ordinances. 6.2 EDA Comments EDA Vice President Dennis mentioned that he’s excited about an upcoming trip to the ICSC, as we’ll have an opportunity to go promote the City of Cottage Grove in Las Vegas; it’s the largest event of its kind, and this will be the first time in a couple years that we’ve been there. We’re looking forward to getting back in the process; even with all of the great things happening now, we think more things can happen and that’s what we want to keep working for. EDA Vice President Dennis mentioned on February 22, our next Cottage Grove Convention and Visitors Bureau meeting will be held. We actually learned about having a Convention and Visitors Bureau in Las Vegas. Potential investors, who owned hotels and lodging facilities, had asked Mayor Bailey and me if we had a lodging tax. Normally, taxes might not be a good thing, but it’s basically a user fee; they charge 3% on top of the bill they charge their clients, and then that money comes back to us and is used to help fund the Convention and Visitors Bureau. It’s designed to promote and bring recognition to the City, and Administrator Levitt mentioned the Visitors Guide earlier today. It’s a really great opportunity for us to promote our City. EDA Vice President Dennis stated he thinks it has a lot to do with economic development because when we have people here, spending money, spending time, and wanting to come back, that makes success happen for all of our businesses and for the community at large. There are still two opportunities to serve on the Convention and Visitors Bureau Board for people with a business background, especially those here in the community; if there’s anyone out there who is interested in joining this group, it’s a great group of people, so please reach out and we’d be happy to have you. EDA President Bailey stated when discussing the Convention and Visitors Bureau and the fact that we’re going to the ICSC in Las Vegas, the great news about the ICSC convention is we’ll finally be able to utilize a new backdrop that we bought a couple years ago, before COVID. It’s a beautiful state-of-the-art backdrop for highlighting the City with videos, signage, and photos. We’ve wanted to use this in Las Vegas, so this will be the first time we’ll be able to use the backdrop to really highlight the City of Cottage Grove; we’re pretty excited about that. EDA President Bailey stated last Wednesday he was able to give the Mayor’s State of the City address, and our City is very strong. Last year, we did a community survey to gauge interest from residents about how they felt about Cottage Grove. People are happy with the direction that Cottage Grove is moving and happy with what’s going on in our community. We heard concerns about growth, maybe increased taxes, etc., and so we’ll be addressing some of those issues. We continue to hear that we need more restaurants and more shopping venues; so, it’s awesome to know that we have a local family who is looking to invest in their own community and build a restaurant here in Cottage Grove, on East Point Douglas Road. We’re excited to have another business join our business community, and we look forward to their future success. 6.3 Response to Previous EDA Comments - None. Economic Development Authority - Minutes February 8, 2022 Page 4 of 4 7 WORKSHOP - None. 8 ADJOURNMENT EDA Member Knop made a motion to adjourn. Motion was seconded by EDA Member Myers. The meeting adjourned at 7:56 a.m. (5-to-0 vote). Respectfully submitted, Jaime Mann Assistant to the City Administrator /jag