Based on the context provided and the dialogue in the transcript, here is the formatted transcript with speaker names. *Note: While the prompt lists City Council members, the Economic Development Authority (EDA) for this municipality appears to include additional or different members as identified during the roll call (Carrie, Jean Baptiste, Myers, Scott, and Cheetah).* *** **[00:00] Mayor Myron Bailey:** All right, good morning everyone. This is the August 29th special meeting of the Economic Development Authority, starting at 7:30. I'm calling it to order. First order of business is roll call. So, Jamie? **[00:15] Jaime Mann:** Bailey? **[00:16] Mayor Myron Bailey:** I. **[00:17] Jaime Mann:** EDA member Carrie? **[00:18] EDA Member Carrie:** Here. **[00:19] Jaime Mann:** EDA member Jean Baptiste? **[00:20] EDA Member Jean Baptiste:** Here. **[00:21] Jaime Mann:** EDA member Myers? **[00:22] EDA Member Myers:** Your [Here]. **[00:23] Jaime Mann:** EDA member Scott? **[00:24] EDA Member Scott:** Here. **[00:25] Jaime Mann:** EDA member Cheetah? **[00:26] EDA Member Cheetah:** Here. **[00:27] Jaime Mann:** EDA Vice President Dennis? **[00:29] Mayor Myron Bailey:** And Mr. Dennis is not here today. All right, so the next item is approval of the minutes, which is 3.1, approval of the meeting minutes for July 11th. If there's no changes or corrections, I'll look for a motion to approve. **[00:45] EDA Member Carrie:** Motion to approve the minutes. **[00:47] Mayor Myron Bailey:** All right, so we have a motion by EDA member Carrie. Do I have a second? **[00:50] EDA Member Scott:** I second the motion. **[00:52] Mayor Myron Bailey:** Scott. Any further discussions? All those in favor signify by saying aye. **[00:56] Group:** Aye. **[00:57] Mayor Myron Bailey:** Opposed? Motion carries. All right, next on our agenda is business items, which is 4.1, development update. Gretchen, or as we'd like to call her, "G," will walk us through this one. **[01:10] Gretchen [Staff]:** Thank you very much. Good morning, everyone. It's another beautiful day in Cottage Grove. We're going to start first with the Beige Book. For the new members, you do have additional information in your packet, but we're just going to highlight some of the challenges and changes from the last time we reported. During this period, employment grew moderately since the last report. Price pressures were mild overall, and businesses reported that prices that they charge to consumers had increased since the last year—or the last report, I should say. Most workers surveyed reported job stability; however, many are still looking for a different job in the hopes of increased income, but they're experiencing difficulties in finding a job that paid enough. So that challenge still remains. Consumer spending was flat. Activity in the professional services sector increased modestly. Construction activity was slightly higher since the last report, while commercial real estate activity was down and residential real estate sales remained stalled. Manufacturing activity increased slightly, and agricultural conditions weakened slightly, although minority and women-owned business enterprises’ activity remains steady. So all in all, a decent report, but the economy is still a little bit slow right now. Next is the Urea luxury apartments. Work has begun on the amenity deck and the pool grilling area. The fourth floor is nearing completion and final inspections will begin shortly for that floor. The interior trim work continues for the rest of the floors, and they plan a ribbon cutting scheduled for September 28th at 2:00 PM. Pizza Ranch—they're almost here. The interior is complete; however, there is a delay in the schedule as they wait for the rooftop mechanical equipment, stone, and electrical transformer. They did inform staff that they still plan to open on September 18th, and we'll just continue to coordinate with them on their grand opening or ribbon cutting. Glacial Valley Park—the framing is started on the park building. That's exciting news. And then in other developments: The View Apartments, their finishing work continues for all three floors and their civil work is well underway. Norhart—the apartment building for a five-story building to be located at 10251 Headley Avenue—their plans have been submitted. Ulta Beauty grand opening on September 22nd. And then Odubi Kids permit is soon to be issued for the new childcare center to be located in the vacant lot next to the shops at Gateway North on Hardwood Avenue. Our Community Development Director, Emily Schmitz, is here if you have any questions about those developments. **[03:55] Mayor Myron Bailey:** All right. Does anybody have any questions for Gretchen at this point? All right. A lot of stuff still happening, even with some of the challenges of the economy, if you will. Well, we're just in our own bubble; we just believe we are. All right, sounds good. Thank you. All right, so next on our agenda is 4.2, which is the Second Amendment to amend—this is always fun when we say these—Second Amendment to Amended and Reinstated Contract for Private Development with North Point BGO Cottage Grove Logistics Park LLC. Gretchen is going to take us through that one. **[04:30] Gretchen [Staff]:** That is always a mouthful. So, Cottage Grove Logistics Park—it's in our business park, and the EDA approved the creation of the TIF 1-20 for the Logistics Park in December of 2021. In February of this year, the EDA approved a request for a First Amendment to the amended and restated TIF agreement—see, that is a mouthful—for the Phase Two, and the commencement date would be from April 30th to October 31st of 2023. Since that time, North Point has reported that given the current interest rates and constraints within the market and banking institutions, they are requesting a Second Amendment to the current contract. The request is that Phase 1A have a completion date of July 30th of 2025, and that Phase Two have a commencement date of April 30th, 2024. Staff will monitor the TIF parameters going forward should additional extensions be requested—and by staff, I mean your financial consultants, your Finance Director, and the planning department. Before you is a recommendation, and we're happy to answer any questions. **[05:40] Mayor Myron Bailey:** All right. And I do know we have a representative of North Point in the room with us today if needed. Is there any comments for either staff or for the applicant at all? If not, seeing any from the EDA at this point, I guess what I'll do is look for a motion to approve. **[06:00] EDA Member Scott:** I’ll make the motion to approve the Second Amendment to the Amended and Restated Contract for Private Development by and between the Cottage Grove Economic Development Authority and NPBGO Cottage Grove Logistics Park LLC. **[06:15] Mayor Myron Bailey:** Thank you. So that's a motion by EDA member Scott. Do I have a second? **[06:18] EDA Member Myers:** I second that motion. **[06:20] Mayor Myron Bailey:** All right, second by EDA member Myers. Any further discussion? All right, seeing none, all those in favor signify by saying aye. **[06:26] Group:** Aye. **[06:27] Mayor Myron Bailey:** Opposed? Motion carries. There you go. Keep at it. We know it's all interesting out there right now. Thank you. All right, so we'll move right along. This is 4.3, which is the Third Amendment to the purchase agreement for Ryan Companies, and Jamie is taking us through this one. **[06:45] Jaime Mann:** Thank you, EDA President Bailey. So Ryan Companies has come back to us due to economic conditions, like you just heard about in the North Point presentation. It is affecting greater businesses than just one. So Ryan Companies has come back to us and requested additional time for closing as they work to secure financing and a tenant for the proposed building at the corner of 100th Street and Jamaica Avenue. We signed a purchase agreement with them in February of '22. We do have a couple of amendments to extend the closing date, and they have asked for a third amendment to push the closing out to September 6, 2024, on or before that time. With the extension, we have requested fifteen thousand dollars of their earnest money becomes non-refundable once the contract is executed, and we are not requesting any additional earnest money because we already have seventy thousand dollars in earnest money from them. Wag [Farms] and Ryan Companies are both agreeable to the terms. So before you are a few recommendations for this third amendment, and I would be happy to stand for any questions you may have. **[07:48] Mayor Myron Bailey:** All right. So is there any questions at this point? Kind of a similar situation as she mentioned. **[07:54] EDA Member Carrie:** Just to clarify—so, I'll just recognize—say this was tonight, at what point do we stop allowing amendments? I understand the economic conditions are changing and things along those lines, but has no one else expressed interest in this particular plot of land that may be able to execute quicker? **[08:14] Jaime Mann:** Thank you, EDA member Carrie. At this time, we have no additional interest in the land, so nobody has come forward asking us for any land holding on it. **[08:24] EDA Member Carrie:** And is it because the other ones were just several months out? This one's an entire year out from roughly today, right? **[08:31] Jaime Mann:** That is correct. **[08:32] Mayor Myron Bailey:** And I do know at one point—I could just share, I won't get into the details—but they did have a tenant that they're working with on cold storage, which is kind of what they're looking to do at that site. And unfortunately, just like we've been hearing with everybody, everybody's kind of hunkering down a bit. So my guess is, the fact that they do want to still extend this versus letting it go—my opinion, in their conversation with them, is that they still have some people that are interested; they just need more time to get across the finish line. So I trust Ryans, and we've worked with them in the business park. If they didn't think they had somebody, they would never—in our case, I don't think they would ever extend, just so you know. **[09:12] EDA Member Carrie:** Okay. **[09:13] Mayor Myron Bailey:** Okay. All right, so we actually have three motions, I believe, on this one. So we'll start with number one, which is on the screen, whoever wants to take that. **[09:23] EDA Member Carrie:** Motion to adopt Resolution 2023-003, consenting to the Third Amendment to the purchase agreement between Wag Farms and the EDA and the Third Amendment to the purchase agreement between the EDA and Ryan Companies US Inc. **[09:40] Mayor Myron Bailey:** All right, so a motion by EDA member Carrie. Do I have second? **[09:43] EDA Member Cheetah:** Second. **[09:44] Mayor Myron Bailey:** All right, we have a second by our new—one of our newest EDA members, Tom—Mr. Cheetah. Any further discussion? Seeing none, all those in favor signify by saying aye. **[09:54] Group:** Aye. **[09:55] Mayor Myron Bailey:** Opposed? Motion carries. Then, who would like to take number two? **[09:59] EDA Member Jean Baptiste:** Okay. I motion to authorize the EDA President and the City Administrator to execute the Third Amendment to the purchase agreement with Wag Farms to extend the closing date to September 6, 2024. **[10:13] Mayor Myron Bailey:** All right, so we have a motion by our second newest EDA member down there on the other end, Mr. Jean Baptiste. Did I say it right? Jean Baptiste? **[10:22] EDA Member Jean Baptiste:** Jean Baptiste. **[10:23] Mayor Myron Bailey:** Jean Baptiste. Oh good lord, this is going to be fun for me, but I'm glad to have you on there. Thank you. All right, so we have a motion. Do I have a second? **[10:30] EDA Member Scott:** Second. **[10:31] Mayor Myron Bailey:** Second by EDA member Scott. Any further discussion? All those in favor signify by saying aye. **[10:36] Group:** Aye. **[10:37] Mayor Myron Bailey:** Opposed? Motion carries. Thank you for that, by the way. All right, and then we have the third. **[10:42] EDA Member Myers:** I can take that one. Let me make a motion to authorize the EDA President and the City Administrator to execute the Third Amendment to the purchase agreement with Ryan Companies US Inc. to extend the closing date to September 6, 2024, with an additional fifteen thousand dollars of escrow becoming non-refundable. **[11:00] Mayor Myron Bailey:** All right, so we have a motion by EDA member Myers. Do I have a second? **[11:04] EDA Member Cheetah:** Second. **[11:05] Mayor Myron Bailey:** Second by EDA member Cheetah. Any further discussion? Seeing none, all those in favor signify by saying aye. **[11:10] Group:** Aye. **[11:11] Mayor Myron Bailey:** Opposed? Motion carries. Thank you on that. And then I guess you get to stay up there for this one. So 4.4 is the Facade Improvement Program, and Jamie will kind of explain this one. And for the EDA members, especially the new ones up here, you'll kind of understand now why things would take a little bit longer with this one particular business going in there. Go ahead. **[11:32] Jaime Mann:** Thank you, President Bailey. So a little bit of background on the Facade Improvement Program. The program started with the city in 2019. It is a one-to-one match program, so we cover 50 percent of the costs up to $24,999, and it is meant to help improve the appearance of the building stock that we have in Cottage Grove. In the photos on the image, you can see some of the previous awardees as we go through the PowerPoint. We do have some criteria for it being awarded to a business. We do have a priority map, which I'll show you on the next screen, but we also use it to encourage improvements to surrounding businesses and improve the appearance and attractiveness of an area. The awardees should be consistent with the Comp Plan, comply with city codes, and priority is given to local versus national businesses. As you can see on your screen, there is a priority map. We have two priority zones there, mostly our retail and commercial areas, and priority is given to applications received within these areas. Funding for the grant program is provided through the EDA. We do every year budget $75,000, so we can award up to three grants of $24,999. Work cannot be completed until after the EDA approves the application and paperwork is signed with us; so they can't do the work and then come back to us and ask for the award to be granted to them. There is a list of eligible expenses—we do exclude some things like parking lot lighting and things like that—and again, it is a one-to-one match. The first application we've received this year is for Hemingway Retail. It is the location where the Dunkin' and Baskin-Robbins is going to be going into. They did come before the EDA last year for this grant, although due to some brand approvals, they were not able to complete the work before our agreement with them ended, so they have reapplied for the 2023 grant. The building is located at 7584 80th Street South, which is right across the street from Grove 80 Apartments. You can see the current facade at the top; with the proposed work, they are looking at removing some of the awnings and the signs from the building. They're going to do some masonry repair and restoration to exterior finishes, replacement and addition of several storefronts, updating the monument sign, and some new exterior and building lighting. The photo below shows the proposed exterior of the building along with updates to the monument sign at the bottom. According to the estimate that they submitted with their application, the proposed work is budgeted at just over $220,000, and they are requesting the full $24,999 to be awarded to them. So before you is a recommendation; I'd be happy to stand for any questions. **[14:15] Mayor Myron Bailey:** All right. Any questions for the EDA at this point on this one? So, first I've heard they're coming back—I thought they weren't doing it for a while. Well, I guess what I would share with you is our staff actually approved a development agreement with them over a year ago, actually. And they took their development plan—I'll look at Emily to help me with this if I say this wrong—they took their plan to Dunkin' corporate, who said that they needed more stacking and they needed some updates to how their drive-through is going to be. And so in order to make that happen, they had to go back and redesign it and get approved from Dunkin' before they could move forward with this project. So our staff worked with them to create a different way of getting in and such. And if you looked at the picture that Gretchen had put up there, on the far left side there, you'll see that little bump out—that's where Dunkin'/Baskin is going. And then they do own—the gentleman does own the entire center, so his intent is to lease out the remainder of the space on that center. And I talked about a week or so ago, they do have some interested tenants that want to go in there other than who may already be in there, but they do want to get going. Matter of fact, I saw an email this morning already, Emily just finalizing everything this morning because they're very interested in being open by the end of the year. So yes, they're coming; it just took forever, like some of these projects that we have lately. Any other questions for staff? All right, thank you for switching that back. So EDA members, I'm looking for a motion, which is before you. **[15:58] EDA Member Scott:** I can make the motion. I motion to award Hemingway Retail LLC an award letter for the submitted project with matching funds up to $24,999 for any eligible expenses as part of the City of Cottage Grove Facade Improvement Grant Program. **[16:15] Mayor Myron Bailey:** All right, so we have motion by EDA member Scott. Do I have a second? **[16:19] EDA Member Carrie:** I second. **[16:20] Mayor Myron Bailey:** Second by EDA member Carrie. I thought I heard a comment down here too. Any other discussions? Seeing none, all those in favor signify by saying aye. **[16:27] Group:** Aye. **[16:28] Mayor Myron Bailey:** Opposed? Motion carries. Thank you, Jamie. All right, and now we are to a public hearing this morning, which is 5.1. And as I'm—I don't know about everybody up here if they're excited, as it seems like the entire community is—but we are looking at doing a Kwik Trip land sale. So Gretchen, if you want to take us through this one. **[16:48] Gretchen [Staff]:** Thank you very much. We received an LOI from Kwik Trip in May of this year for the parcel indicated on the map at the corner of Jamaica Avenue South and 95th Street South. Discussions on the LOI moved the project directly forward to a purchase agreement, which is what we're discussing today. The purchase price for the property is $1,598,944. The vacant land is, as noted, approximately 6.76 acres and is zoned I-1. Kwik Trip plans to build their most recent, approximately 9,200 square foot Gen 3 concept. You'll see that on the next screen—oh no, we have one more thing to talk about. As a part of this development, additional fill material will be needed to make the site more pad-ready. The proposed dirt agreement that you have in your packet between the city and the EDA allows for the excess material in Outlet C to be exported to the adjacent properties. This property, as well as the adjacent Ryan Companies parcel, both need extensive amounts of fill material to make these parcels more favorable for development while also expanding the regional basin LP3. As a part of this presentation, historically all land in the Business Park has been sold to the EDA and then sold to the end user, allowing for the cost recoveries to have made the site pad-ready. Pursuant to your statutes in Minnesota law, the EDA must hold a public hearing on the sale of the property and publish that notice at least 10 days but not more than 20 days in advance. Such notice was published in the city's official newspaper for this hearing. And now this is the public hearing portion, and staff is happy to answer any questions if you have. The applicant is not here. **[18:38] Mayor Myron Bailey:** Any questions for staff before I open the public hearing to be official? All right, so I will go ahead, make it official and open the public hearing. If there's anybody who wants to speak on this item, they are welcome to do so at this time. Seeing only people I know in the audience that are not here for that, I will go ahead and close the public hearing. And due to moving all the way to a land sale here, there's a few more recommendations or motions that we need to make in this one. So if we want, we could just kind of start on down the list here, unless EDA members have any questions. So we'll start with number one. Who would like to take number one? **[19:20] EDA Member Myers:** I’ll talk about one. Okay. All right, I'll make a motion to approve Resolution 2023-004, authorizing the purchase of property from Wag and sale of property to Kwik Trip for development purposes. **[19:33] Mayor Myron Bailey:** All right, so motion by EDA member Myers. Do I have a second? **[19:37] EDA Member Scott:** Second it. **[19:38] Mayor Myron Bailey:** Second by EDA member Scott. Any further discussion? All those in favor signify by saying aye. **[19:42] Group:** Aye. **[19:43] Mayor Myron Bailey:** Opposed? Motion carries. Who would like to do number two? **[19:47] EDA Member Cheetah:** We'll take it. I move that we authorize the EDA President and City Administrator to execute the purchase agreement with Wag for the purchases of approximately 6.76 acres for development purposes. **[19:59] Mayor Myron Bailey:** All right, so we have a motion by EDA member Cheetah. Do I have a second? **[20:03] EDA Member Jean Baptiste:** I second that motion. **[20:04] Mayor Myron Bailey:** All right, we have a second by Jean Baptiste. Jean Baptiste. Jean Baptiste. And I apologize for that. All right, so we have a motion, then a second. Any further discussion? Seeing none, all those in favor signify by saying aye. **[20:17] Group:** Aye. **[20:18] Mayor Myron Bailey:** Opposed? Motion carries. And then we have number three. **[20:21] EDA Member Carrie:** A motion to authorize the EDA President and City Administrator to execute the purchase agreement with Kwik Trip for the sale of approximately 6.76 acres for development purposes, subject to minor modifications by the City Attorney. **[20:36] Mayor Myron Bailey:** All right, so we have a motion by EDA member Carrie. Do I have a second? **[20:39] EDA Member Cheetah:** Second. **[20:40] Mayor Myron Bailey:** Second by EDA member Cheetah. Any further discussion? Hearing none, all those in favor signify by saying aye. **[20:46] Group:** Aye. **[20:47] Mayor Myron Bailey:** Opposed? Motion carries. And then finally, number four. **[20:50] EDA Member Scott:** Motion to authorize the EDA President and City Administrator to execute the agreement between the City of Cottage Grove and the Cottage Grove Economic Development Authority for the sale of fill material. **[21:03] Mayor Myron Bailey:** All right, so we have a motion by EDA member Scott. Do I have a second? **[21:07] EDA Member Cheetah:** Second. **[21:08] Mayor Myron Bailey:** Second by EDA member Cheetah. Any other discussions? Seeing none, all those in favor signify by saying aye. **[21:14] Group:** Aye. **[21:15] Mayor Myron Bailey:** Opposed? Motion carries. There we go. And I just have to mention, with our two newest members, you can—we’ll just say it was all you guys bringing Kwik Trip to town for the rest of the community, since everybody's so excited about it. You take full credit; please do that. All right, so next on our agenda is six, which is other business. 6.1 is the EDA calendar. Just for our newest members, what we do is the EDA—well, all commissions—get a calendar that kind of lists projects that are out, going forward out into the community. I will mention one thing that is happening today at 9:30, and that is there's what we call the Southwest Arterial event, which is on the corner of Jamaica and 100th Street. This is that project which is looking to expand 100th Street from, in essence, Jamaica all the way to Highway 61 with a bridge that goes over the railroad tracks there for another, I'll say, straight expansion of that road to get truck traffic and such all the way to Highway 61 versus kind of pushing everybody to the roundabout on Jamaica. Our representative, Angie Craig, is going to be there along with Washington County, who's kind of putting this project together. I do know that the Transportation Advisory Board, which I do serve on, has members that are going to be there because they were one of the groups that actually put money towards this project along with Angie Craig. We still have more money to go after, so our goal is to hopefully get all of that solidified, maybe even by the end of this year, we're hoping—we'll keep our fingers crossed. But the idea would be we'd move forward with that project in the upcoming couple years. Just want to let everybody know. And then this is also the other neat thing for us: with our working with the 3M company there, they have a bunch of land there that's vacant, if you will—just open space—being that they have made some changes to their uses on their site. They don't need as much space anymore, and so they are interested in selling some of that land, which means it'll open up additional opportunity for businesses to come into our—we’ll be able to expand our Business Park. Because even though we just did a couple development agreements, our Business Park has pretty much been bought up out there right now with no real opportunity for expansion except for this area and 3M. The third thing I'll mention is, eventually, also, this would give us direct access from the south to the Langdon Village area, which is where the old Majestic Ballroom is currently sitting. And we really do need access for businesses and such that want to go in there from the south and the north, not just a single way in and out. So a very, very important project for the future of Cottage Grove and its growth, business community, tax base, and that. So if you want to stop out there, you're welcome to do so to see the diagrams and hear a couple speeches, I'm sure, but this is going to be a great, great opportunity for our community. All right, so next is 6.2, which is EDA comments or requests. Any EDA comments or requests? Welcome to our two newest members. Councilmember Dennis and I were able to interview, I believe, five—it was five applicants, and all five were great. And these two rose to the top. So I want to welcome both of you to your first EDA meeting with us, and like I said, you can claim all the credit for Kwik Trip. And then 6.3 is response to previous EDA comments—there isn't any this morning. 7 is workshop—we do not have one. So I will look for a motion to adjourn. **[24:50] EDA Member Carrie:** Motion to adjourn. **[24:52] Mayor Myron Bailey:** All right, so we have a motion by EDA member Carrie. Do I have a second? **[24:55] EDA Member Cheetah:** Second. **[24:56] Mayor Myron Bailey:** Second by EDA member Cheetah. Any further discussion? All those in favor signify by saying aye. **[25:01] Group:** Aye. **[25:02] Mayor Myron Bailey:** Opposed? Motion carries. We are adjourned. Thank you.