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HomeMy WebLinkAbout3.1 03-16-2022 EDA Special Meeting Minutes CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY ____________________________________________________________________ MINUTES Economic Development Authority (EDA) Special Meeting March 16, 2022 Pursuant to due call and notice thereof, a special meeting of the Economic Development Authority was held on the 16th day of March, 2022, at 5:00 p.m. CALL TO ORDER The meeting was called to order at 5:00 p.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; EDA Member Myers-Here; Eric Thiewes, EDA Member-Here. Members Present: Myron Bailey, EDA President Steve Dennis, EDA Vice President Kyle Knop, EDA Member Dan Myers, EDA Member Eric Thiewes, EDA Member Members Absent: Chris Carey, EDA Member Joe Krohn, EDA Member Staff Present: Jennifer Levitt, EDA Executive Director/City Administrator Robin Roland, Finance Director Christine Costello, Community Development Director Gretchen Larson, Economic Development Director Jaime Mann, Assistant to the City Administrator Others Present: Christine Hubacek, NorthPoint Development Mark Militzer, NorthPoint Development APPROVAL OF MINUTES 3.1 Approval of February 8, 2022 EDA Meeting Minutes EDA Vice President Dennis made a motion to approve the February 8, 2022 EDA Meeting Minutes. Motion was seconded by EDA Member Knop. Motion passed unanimously (5-to-0 vote). BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry City Administrator Jennifer Levitt gave the Beige Book Report for February, 2022. Employment: Grew moderately, but was constrained by tight labor market availability. Wage Pressures: Remained strong with wage acceleration driven by recruitment and retention challenges rather than workers’ inflation concerns. Price Pressures: Remained strong, particularly for inputs. Labor Supply: Remained tight. Consumer Spending: Grew moderately. Commercial Construction: Grew moderately. Residential Construction: Remained slow due to very low inventories, though that’s not the case in Cottage Grove. Commercial Real Estate: Inventory was flat. Industrial space: Continued to see strong demand, as we’ll see tonight with the projects on the agenda. Vacancy Rates: Office, Retail rates continued to climb. Manufacturing Activity: Increased moderately. Agricultural Conditions: Improved. Project Updates: North Star Sheets: Their addition project is completed, but they need to wait for warmer weather to finish the painting. Shoppes at Cottage View: We’re waiting for President Biden to sign the bill, but we believe we’ve got an earmark of about $3M for this project, which would help fund a very necessary project for a gateway into our community. 100th Street Extension: From Jamaica Avenue over to Highway 61, as we’re looking to put a four-lane bridge section over CP Rail. It provides different opportunities for development, both industrial and retail, at the corner. We’re currently working with a lobbyist on solicitations for both Federal and State funds; we also have some bonding requests with the State. It’s exciting to see a lot of growth potential in our Business Park. Pizza Ranch: Is on the City Council Agenda tonight, so watch Facebook after that meeting. Renewal by Andersen: Is on the Council Agenda tonight as well; they’re looking to expand with a 330,000 square-foot building addition, with additional parking for their trucks. The Planning Commission unanimously recommended approval. If all goes well, they’ll be closing on the property at the end of March, and construction will most likely start as soon as the ground thaws. Park Updates: Oakwood Park Shelter: Framing inspection was conducted on February 18; plumbing work to start in the Spring once the ground thaws. 4.2 Cottage Grove Logistics Park, NorthPoint Phase I Plan and TIF Agreement Economic Development Authority - Minutes March 16, 2022 Page 2 of 3 Christine Costello, Community Development Director, reviewed the background of this project: NorthPoint is based out of Kansas City. The Master Site Plan was approved in December, 2021, and it’s 252 acres with six separately-owned parcels that they have purchased. There is approval for nine buildings that will be warehouse, manufacturing, distribution, and office space. This is proposed as a phased development so there will be Site Plan approval for each phase to ensure that it aligns with the approved Master Plan. In December, the EDA approved creation of the TIF District for the Cottage Grove Logistics Park; as part of that, NorthPoint is required to submit to the EDA their proposed phasing plan for each phase, and we’re at Phase I. With this phase is the construction of two buildings for a total of approximately 700,000 square feet. NorthPoint will also be completing the public improvements: 100th Street, Ideal Avenue, and the construction of 105th Street. Director Costello displayed the Site Plan, noting they’re going to start on the far-western side and work their way east, towards Ideal Avenue. The Planning Commission held their public hearing for Phase 1 on February 28, and they unanimously recommended approval of Phase I; they’re meeting all of the requirements of the Master Plan, including landscaping, sound wall, and lighting. They’ve addressed concerns they’ve heard at previous neighborhood meetings, so this will come before the City Council at the April 6 meeting. This is approval of Phase I, but you will see also see Phase 2, 3, and 4 come before the EDA to ensure those are also keeping with the Master Plan. Christina Hubacek, P. E., and Mark Militzer, Regional Vice President of NorthPoint Development both spoke. Engineer Hubacek stated they’re excited to begin this first phase of construction. If all goes well, they’ll be breaking ground in the Spring; they’ve seen a lot of tenant activity, no leases have been signed to date, but they’ve seen some significant RFPs. They want the construction to begin and get the roads improved in this area. Vice President Militzer stated they’ve made a Notice to Proceed to both R.J. Ryan, for the construction of the on-site buildings, and R.L. Larson for the road improvements. They’ll focus on 105th Street first, once the final parcel sales contract is executed; that will be followed with 100th Street improvements, and then Ideal Avenue. There are some private utilities that need to be relocated, and we’re working with those groups prior to the 100th Street expansion. We and all of the contractors are excited to start on this once the ground thaws. EDA President Bailey thanked them for speaking and thanked NorthPoint for investing in our community. Recommendation: By motion: Approve Phase I of the Master Plan for the Cottage Grove Logistics Park, which consists of the construction of two buildings with approximately 700,000 square feet. EDA Vice President Dennis made a motion to approve Phase I of the Master Plan for the Cottage Grove Logistics Park, which consists of the construction of two buildings with approximately 700,000 square feet. Motion was seconded by EDA Member Thiewes. Motion passed unanimously (5-0). 4.3 Airgas Temporary Construction Easement Amendment Administrator Levitt stated the EDA had previously approved two easement areas for Airgas, one to the north of Airgas and one to the west side of their property; when Airgas was constructing its new facility in 2019, it requested this for the construction staging areas. Then COVID happened, and obviously some of their supplies were delayed and there were construction delays. So, they ended up using two temporary lay-down areas for construction longer than they had anticipated. Unfortunately, they weren’t able to actually get the restoration requirements all completed prior to snowfall this year so their lease has expired. WAG and Airgas have both agreed to extend the lease to allow them time to do the restoration in the Spring. As we had a buyer for Jamaica and 100th Street, Ryan Companies is aware that we’re extending this lease to enable Airgas to remove the materials from the site. Also, in the easement there is financial compensation to the City for extension of that lease that was not originally anticipated. Tonight, we’re just asking for authorization to execute that temporary construction easement amendment with WAG Farms and also to execute that temporary construction easement amendment with Airgas, subject to minor modifications by the City Attorney. Recommendation: By motion: 1) Authorize the EDA President and City Administrator to execute the Temporary Construction Easement Amendment with WAG Farms. 2) Authorize the EDA President and City Administrator to execute the Temporary Construction Easement Amendment with Airgas, subject to minor modifications by the City Attorney. EDA Member Myers made a motion to authorize the EDA President and City Administrator to execute the Temporary Construction Easement Amendment with WAG Farms. Motion was seconded by EDA Member Knop. Motion passed unanimously (5-0). EDA Member Thiewes made a motion to authorize the EDA President and City Administrator to execute the Temporary Construction Easement Amendment with Airgas, subject to minor modifications by the City Attorney. Motion was seconded by EDA Member Myers. Motion passed unanimously (5-0). 5 PUBLIC HEARINGS – None. OTHER BUSINESS 6.1 EDA Calendar EDA President Bailey reminded everybody to check out the Fish Fry at River Oaks; they were there last week, and it’s really good. 6.2 EDA Comments EDA Member Myers noted on April 30th, from 10:00 a.m. to 2:00 p.m., the Cottage Grove Area Chamber of Commerce Community Showcase will be taking place at the fieldhouse at Park High School. We’re excited to be bringing that back to the community this year. EDA President Bailey stated City staff will be there, but he knows the public also really enjoys that. 6.3 Response to Previous EDA Comments - None. 7 WORKSHOP - None. Economic Development Authority - Minutes March 16, 2022 Page 3 of 3 8 ADJOURNMENT EDA Member Thiewes made a motion to adjourn. Motion was seconded by EDA Vice President Dennis. Motion passed unanimously (5-0). The meeting adjourned at 5:14 p.m. Respectfully submitted, Jaime Mann Assistant to the City Administrator /jag