Loading...
HomeMy WebLinkAbout3.0 8-09-2022 EDA Meeting Minutes CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY ____________________________________________________________________ MINUTES Economic Development Authority (EDA) Meeting August 9, 2022 Pursuant to due call and notice thereof, a meeting of the Economic Development Authority was held on the 9th day of August, 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; EDA Member Carey-Here; EDA Member Krohn- Here; EDA Member Myers-Here; EDA Member Thiewes-Here. Members Present: Myron Bailey, EDA President Steve Dennis, EDA Vice President Chris Carey, EDA Member Joe Krohn, EDA Member Dan Myers, EDA Member Eric Thiewes, EDA Member Members Absent: None Staff Present: Gretchen Larson, Economic Development Director Brenda Malinowski, Finance Director Jaime Mann, Assistant to the City Administrator Others Present: Ryan Zickel, Project Manager, NorthPoint Development APPROVAL OF MINUTES 3.1 Approval of June 28, 2022, EDA Meeting Minutes EDA Vice President Dennis made a motion to approve the June 28, 2022, EDA Meeting Minutes. Motion was seconded by EDA Member Carey. Motion passed unanimously (6-to-0 vote). BUSINESS ITEMS 4.1 Economic Development Update/Business Inquiry Economic Development Director Gretchen Larson reviewed the Beige Book Report for May: Employment: Grew slightly overall; firms added more workers, but job postings have flattened or fallen. Wage and Price Pressures: Remained strong. Job seekers are looking for fulltime employment, upward mobility, and better pay. Consumer spending: Overall fell slightly since the last report but is still healthy among higher-income individuals. Lower-income households are still facing some challenges. Professional Services and Manufacturing: Activity increased moderately. Commercial Construction: Flat since the last report, but interest rates need to settle down. Agricultural conditions: Remained strong since the last report. Oil and gas drilling: Increased slightly since the previous report. Minority and women-owned business enterprises showed that sales and profits remained steady or grew in May, although they were adjusting their expectations for June. Project Updates: Cottage Grove Apartments: Groundbreaking took place on July 14, with Mayor Bailey, Council Members, and City Administrator Levitt there to help welcome that new apartment complex to the City. They were very appreciative of all of the City support. Grant Submittal for 80th Street Construction Project: We submitted a request for this project via the Congressional Direct Spending requests, and the project made it into the House Mini-Omnibus Bill. Mayor Bailey and Public Works Director Burfeind will be attending the Transportation Alliance Meeting in D.C. from September 20-22 to continue advocating for this project. 100th Street Project: We’re still working on the Rule version of that grant for the State, so everything is still in the queue. The Shoppes at Cottage View may or may not get any additional funding. 4.2 Syndica Assignment Assistant Mann stated in February 2022, we entered into a Purchase Agreement with Syndica, LLP for about 25 acres at the corner of 97th Street and Hemingway Avenue. Under that Purchase Agreement, they have the option to assign their interest to any entity that is owned or controlled by Syndica, and they have formed Hemingway Industrial, LLC, which is what the development is being called at this point. With that, they have forwarded us an Assignment and Assumption of Purchase Agreement, executed as of July 20, 2022. The EDA needs to consent to the Assignment and approve a resolution to allow the Assignment of the Purchase Agreement. With it being owned by Syndica, no additional public hearing is needed since we held the public hearing with the initial land sale. Recommendation: By motion: 1) Adopt a resolution consenting to the Assignment and Assumption of the Purchase Agreement by and between the Cottage Grove Economic Development Authority and Syndica, LLP. 2) Authorize the EDA President and City Administrator to execute the Consent and Release by Seller to consent to the foregoing Assignment and Assumption of Purchase Agreement. Assistant Mann stated she’d take any questions; none were asked. Economic Development Authority - Minutes August 9, 2022 Page 2 of 3 EDA Member Myers made a motion to adopt a resolution consenting to the Assignment and Assumption of the Purchase Agreement by and between the Cottage Grove Economic Development Authority and Syndica, LLP. Motion was seconded by EDA Member Krohn. Motion passed unanimously (6-to-0 vote). EDA Member Carey made a motion to authorize the EDA President and City Administrator to execute the Consent and Release by Seller to consent to the foregoing Assignment and Assumption of Purchase Agreement. Motion was seconded by EDA Member Thiewes. Motion passed unanimously (6-to-0 vote). 4.3 Hotel Study Director Larson advised that a hotel feasibility study was done in 2014 by the City, and its been the basis over several years for discussions of hotel and motel sites. At ICSC in May 2022, the City met with five hoteliers, three of whom are interested and are still discussing with us possible locations in Cottage Grove for expansion. As part of that, they asked if we had an updated hotel feasibility study; we replied that we’re working on it, and we’ll discuss it with the EDA at their next meeting. During the interim discussion with hoteliers, the people at HVS were highly recommended, both within their industry and also with the people who actually do the site selection for hotels. Ronn Thomas does quite a bit of work for Cushman & Wakefield, and he said they’re the best in the business at doing feasibility studies; they’re not the least expensive, but they are the best. Should this be approved, the process would consist of five phases, which are in the proposal. It would include some site visit(s) and it would take about 45 days to complete. The Executive Director and staff thoroughly reviewed the proposal, and it meets all the elements, things that we would hope to get from the study. The total cost for all five phases, which will include a final written report, is $14,000. Director Larson stated that she’d answer any questions about the study. EDA Member Thiewes asked if it had to go to competitive bid or if they chose a vendor to use. Director Larson stated that this type of service does not have to go to competitive bid if it’s under $25,000, which was confirmed by Finance Director Brenda Malinowski. Director Larson stated it’s a professional service, and there aren’t many people who actually do this for a living. We looked at the person who had done the previous study, and their cost was approximately $10,000; in reviewing the previous study, she wasn’t sure that everybody got the results that they were hoping for. Just because we know our City well and know that there are two ideal spots for hotels, that doesn’t mean there might not be better or different spots. We want to make sure that the study takes a look at the entire City, irrespective of our assumptions about where things might go. EDA President Bailey stated when we had the meeting with Ronn Thomas and also when we spoke with a couple of other entities, HVS was mentioned as very reputable; others also stated that they trusted their numbers. Nothing against the person who had done the previous study, but we as a City had kind of picked where we thought the site should be. This group will say we think it should go here and here and this is why, and then have some concrete data to support that. We want to make sure that we use who the hoteliers want as their guide because it will make it easier for us to move through the process. EDA Vice President Dennis stated it’s the pedigree that goes along with the company and the reputation. We feel confident that what this study is going to show is that we’ve got a tremendous need. There are many end users here that can benefit from this: An athletic association that has major tournaments, some national; wedding venues; corporate partners in the Industrial Business Park, some are corporate headquarters, so people come here for training; a community of 40,000 people, who sometimes need places for their relatives or friends to stay when they come to town. He drew a parallel to this with what happened with the Grove80 Apartments: We’d not had a new apartment building structure brought here since 1994, so a feasibility study was done on that, it demonstrated there was a need, and so we had an investor come in who achieved great success. Now, we’ve got additional opportunities coming our way. He thought this would pave the same opportunity for us moving forward; it’s a necessary thing to do, he feels really good about it, and concurs with EDA President Bailey that these are requests we’ve heard from different investors. EDA Member Myers asked about the general timeline expectations for them to turn it around once we’ve committed to it; Director Larson replied it’s about 45 days. Recommendation: By motion, approve the proposal from HVS, LLC to complete a Hotel Feasibility Study in an amount not to exceed $14,000. EDA Vice President Dennis made a motion to approve the proposal from HVS, LLC to complete a Hotel Feasibility Study in an amount not to exceed $14,000. Motion was seconded by EDA Member Krohn. Motion passed unanimously (6-to-0 vote). 4.4 NorthPoint Phase 1A TIF Agreement Director Larson stated NorthPoint received their Master Plan approval in December 2021 for approximately 252 acres with nine separate buildings; it’s a phased development, so it requires that we make sure we review and approve each step of the process to make sure it’s compliant with the Master Plan. The EDA gave approval for creation of the TIF District 1-20 for what is now the Cottage Grove Logistics Park, also known as NorthPoint. The TIF District was created, and at that meeting, you required that each phase be brought back to you. It’s returning NorthPoint Phase 1A Building 3, marked in yellow on the map, approximately 30 acres located south of 100th Street, for the Phase 1A Cottage Grove Logistics Master Site Plan; it’s for the proposed construction of Building 3, which is 520,000 square-feet and will be used for warehousing, manufacturing, distribution, office space, or all of them. That’s the overall Site Plan. The Planning Commission reviewed and held a public hearing for NorthPoint’s request at their July 25, 2022, meeting; they voted unanimously (7-to-0) to recommend approval of the Phase 1A building. The City Council will consider this request at their August 17 meeting. EDA President Bailey asked if the representative from NorthPoint Development wished to speak. Ryan Zickel, Project Manager with NorthPoint, stated he’d like to just give a quick construction update. Walls are standing at Building 2, almost half a million square-foot building, and roofing will begin this week. Building 1 will follow shortly thereafter as precast panels have been delivered this week; in two weeks, that building will be standing also. He’s excited to bring another half million square-foot building to you today. EDA President Bailey asked if there was any word on tenants yet that could be shared publicly. Mr. Zickel replied not as of yet, but he promised the City would be our first call once that’s known; they continue to be excited and optimistic and appreciate the continued partnership with the community. EDA President Bailey stated the fact that they’re working on Building 3 already tells him it must be pretty good. Recommendation: By motion, approve Phase 1A of the Master Plan for the Cottage Grove Logistics Park, which consists of the construction of one building with approximately 520,000 square-feet. EDA Member Thiewes made a motion to approve Phase 1A of the Master Plan for the Cottage Grove Logistics Park, which consists of the construction of one building with approximately 520,000 square-feet. Motion was seconded by EDA Member Myers. Motion passed unanimously (6-to-0 vote). PUBLIC HEARINGS - None. OTHER BUSINESS Economic Development Authority - Minutes August 9, 2022 Page 3 of 3 6.1 EDA Calendar EDA President Bailey reminded EDA Members there’s information available about the River Boat Cruise on September 13, from 11:00 a.m. to 1:00 p.m. We’d love to have them join us as it’s a really nice event where we get to cruise the back area of Cottage Grove along the Mississippi. He encouraged all of them to join us if they’re able. Many of our partners from the Business Park will be there, so it would be great to have the EDA as a partner on that. 6.2 EDA Comments EDA Vice President Dennis stated he thought it was a good time to thank all of our colleagues who serve on this particular panel for their volunteerism. They’re very much appreciated, and he thanked them for that. EDA President Bailey added with the hotel study that we just approved, when we had the national softball tournament in Cottage Grove a couple weeks back, he went to Junction 70 with his dad at one point and the place was packed. They even had extra tables outside for people who were waiting to get inside. The question asked by many of the people who were in town for this event was why we didn’t have more hotels. One team stayed at the Country Inn & Suites, and the rest had to go to Woodbury; so, he’d prefer to keep those dollars here. It will be nice to see what we can do to get some additional hotel opportunities here, for tournaments and other events that come to Cottage Grove. EDA President Bailey stated as Director Larson noted, we were at the ICSC convention and actually met with a developer who had searched us out and told us they want to work with us. We’re having an in-person meeting with a developer about the land at the Shoppes at Cottage View this coming Thursday. This developer sought us out and is interested in working with us to develop the Shoppes at Cottage View with our vision of what we want to see there. So, we’ll have them and the landowner together in one room, and then we’ll be taking a tour of the City. It’s exciting that this is taking place, and it’s kind of the first time that we’ve had something like that come to fruition here in Cottage Grove. We’ll be showing off the City of Cottage Grove, and he wanted to share that with everybody. EDA Member Thiewes told everyone to go out and vote today. EDA President Bailey said he did that earlier today, so go out and make your voices heard. 6.3 Response to Previous EDA Comments - None. 7 WORKSHOP - None. 8 ADJOURNMENT EDA Member Myers made a motion to adjourn. Motion was seconded by EDA Member Thiewes. The meeting adjourned at 7:52 a.m. (6-to-0 vote). Respectfully submitted, Jaime Mann Assistant to the City Administrator /jag