Based on the context provided and the phonetic clues in the transcript, here is the corrected and attributed version of the meeting. *Note: Since the source text did not include timestamps, I have omitted the numbers to avoid guessing, but preserved the requested format.* *** **[Timestamp] Mayor Myron Bailey:** All right, good morning. This is the January 9th, 2024, Cottage Grove Economic Development meeting, which I'm calling to order. Our first order of business will be roll call, and G—or Gretchen—will take us through that. **[Timestamp] Gretchen (Economic Development Staff):** Thank you. EDA Member Thiede? **[Timestamp] Councilmember Dave Thiede:** Here. **[Timestamp] Gretchen (Economic Development Staff):** EDA Member Scott? **[Timestamp] EDA Member Scott:** Here. **[Timestamp] Gretchen (Economic Development Staff):** EDA Member Meyers? **[Timestamp] EDA Member Meyers:** Present. **[Timestamp] Gretchen (Economic Development Staff):** EDA Member Baptist? **[Timestamp] EDA Member Jean Baptist:** Here. **[Timestamp] Gretchen (Economic Development Staff):** EDA Member Carrie? **[Timestamp] EDA Member Carrie:** Here. **[Timestamp] Gretchen (Economic Development Staff):** EDA Vice President Olsen? **[Timestamp] Councilmember Justin Olsen:** Here. **[Timestamp] Gretchen (Economic Development Staff):** EDA President Bailey? **[Timestamp] Mayor Myron Bailey:** Here. So we're everybody's here this morning. And I should just mention to the board—I know he was going around introducing himself—but each year as Mayor, I get to appoint members from the Council to be liaisons or such to the different commissions. Councilmember Olsen was by choice for Vice President of the EDA, so I just want to mention that’s why Councilmember Olsen is here. So, welcome, Councilmember. **[Timestamp] Councilmember Justin Olsen:** Thank you. **[Timestamp] Mayor Myron Bailey:** All right. Next is number three, approval of the minutes. We have the minutes for the 12th of December 2023. One item of correction that was caught after it was sent out: Jean Baptist was not actually here at the last meeting, but he was noted as being here. The staff noted it on the minutes that he was here, and so there is an amended meeting minutes that shows that he was absent at last month's meeting. I just wanted to mention that note to the EDA board here before we look for a motion and a second to approve. **[Timestamp] Councilmember Justin Olsen:** Move to approve the amended minutes. **[Timestamp] Mayor Myron Bailey:** All right, so we have a motion by EDA Vice President Olsen. Do I have a second? **[Timestamp] EDA Member Carrie:** Second. **[Timestamp] Mayor Myron Bailey:** Second by EDA Member Carrie. All those in favor signify by saying aye. **[Timestamp] Multiple Speakers:** Aye. **[Timestamp] Mayor Myron Bailey:** Opposed? Motion carries. Next is number four, which is business items. We've got a variety of items here, so we'll start with 4.1, which I don't think we have one actually, which is the Beige Book report, unless you’ve got an update? **[Timestamp] Gretchen (Economic Development Staff):** So there is no Beige Book report for this month. 4.2 is development update, which I know we do have. **[Timestamp] Mayor Myron Bailey:** So, Gretchen, why don't you take us through this? **[Timestamp] Gretchen (Economic Development Staff):** Good morning, everyone. As the Mayor noted, the Beige Book is not in your report because it'll be ready again in February. So we're going to start off with the development updates. "Oodles to Be Kids," their foundation work has been completed and the framing has started, so they're moving along quickly. Hemingway Retail Center work is nearing completion for the facade improvements, and next we move on to the interior. One of the tenants, Dunkin’/Baskin Robbins—their trade work continues on their build-out. Hinton and Stein, the exterior wall panels have been completed and construction of the roofing steelwork is underway. The View Apartments, the temporary certificate of occupancy has been issued with a minor punch list of items needing to be addressed before a complete C-of-O is issued. Other development updates: Trellis, which is now going to be Bluestem Apartments—the plans are under review for their new affordable senior living project at 7617 79th Street South. Norhart, their plans have been submitted for the new market-rate apartment building to be located at 10251 Hadley Avenue. Tradehome Shoes received a letter of approval for the mezzanine and the lower-level offices as part of their expansion. Then Cottage Grove Logistics Park, 7601 100th Street—the finishing work has begun for their speculative office, and in their adjacent building, the office build-out is completed but they're waiting on electrical to finish the project. Of course, this is always the great work of your Community Development Department, and we're happy to answer any questions on those projects. I believe Emily Schmitz is here just in case you have any questions for her. **[Timestamp] Mayor Myron Bailey:** All right. Any questions on anything, EDA? The only thing that wasn't on here—which maybe it's going to be brought up, I even had a question this morning at Starbucks—is the Chase Bank going in the empty spot next to Culver’s? That seems to be the question of the day with the fencing going up there. That is a pre-approved bank that's going to be going in there. I thought I'd throw that in there because I got asked again this morning. **[Timestamp] Gretchen (Economic Development Staff):** We're going to write an article about that as well to give the public an update. **[Timestamp] Mayor Myron Bailey:** All right, seeing none, we'll move to 4.3, which is the TIF District plan and establishment of TIF number 1-21 for The Rose Cottage Grove Apartment LLC. I'll turn it back to you. **[Timestamp] Gretchen (Economic Development Staff):** The city received a public financial assistance request from Roers Development seeking TIF assistance for their proposed development at 6850 East Point Douglas Road. The Council received a project presentation in October. The developer originally proposed to construct a 144-unit mixed-income multi-family apartment project with 20% of the units at 50% AMI (Area Median Income). During those discussions, and based upon the desire of the city to make the project even more affordable, Roers increased their affordability to include 8 units at 60% AMI along with some naturally occurring 70% and 80% AMI units. The team at Ehlers, your financial consultants, had to run another analysis about the project and they concluded that TIF assistance for no more than 15 years with a present value of $1.96 million was warranted. This is the actual site on your screen to the right. The proposed TIF plan establishes TIF 1-21. To complete the process, the EDA requests the City Council hold a public hearing on January 17th, 2024. Resolution 2024-02 in your packet authorizes the creation of an interfund loan for up to $25,000 from the EDA fund to pay for qualified costs. As TIF is generated, the EDA fund is repaid. Also included is a contract for private development with Roers Cottage Grove Apartments LLC. The agreement includes a "look-back" provision to ensure assistance is right-sized. Shane Redlen with Ehlers is here if you have questions, and Travis Fairchild representing Roers is also here. **[Timestamp] Mayor Myron Bailey:** Thank you. Questions by the EDA for staff at this point? Councilmember Olsen. **[Timestamp] Councilmember Justin Olsen:** Thank you very much, Gretchen. I noticed in the previous slide that you indicated there's a look-back provision. I know that's a common thing, but for the public watching at home, could you explain exactly what that look-back provision is and why we do it? **[Timestamp] Gretchen (Economic Development Staff):** Actually, we would have Shane do that. **[Timestamp] Shane Redlen (Ehlers):** Thank you, members. Do we call you Mr. Mayor this morning? It’s a great question. We have three look-backs in the development agreement for this project. The first is at the time construction is complete to make sure construction costs are in line with the analysis. If the construction comes in cheaper, the assistance is downsized. The second look-back is at stabilization—when they are over 90% occupied—to make sure the Tiff assistance wasn't in excess of what was needed. The last one comes into play if the project is sold. It’s a performance look-back on the sale. We don’t adjust it up, but we can shave assistance off if they did very well on the sale. **[Timestamp] Councilmember Justin Olsen:** So it’s fair to say these provisions protect the public trust and ensure the TIF isn’t too big for the project? **[Timestamp] Shane Redlen (Ehlers):** Yes, that’s correct. **[Timestamp] Councilmember Dave Thiede:** Have we done a study on how many apartments Cottage Grove can sustain? It seems like we've been building a lot of them recently. **[Timestamp] Jennifer Levitt (City Administrator):** Mayor and members of the EDA, it's a great question. We have a lot of demand, but the City Council also authorized staff this past Saturday to proceed with a housing study to look at the market gaps and trends. I would ask the applicant to talk about their analysis related to their project. **[Timestamp] Travis Fairchild (Roers Companies):** Good morning, Mayor and members of the EDA. My name is Travis Fairchild with Roers Companies. We are not concerned with the supply coming online because we have 20% of units set at 50% AMI and others at 60% AMI. By offering a market-rate quality unit at a lesser price, we feel there shouldn't be concerns with lease-up. We rely on third-party market studies that show pent-up demand still exists. **[Timestamp] Councilmember Dave Thiede:** And my only other question is a technical one. You're planning to use 57% Class 1 and 2 materials and then 53% Class 3 materials. That's 110%. **[Timestamp] Travis Fairchild (Roers Companies):** Yeah, I would have to connect with our architects to make sure we have those numbers correct before our City Council meeting. Our intent is to use a lot of glass and stone, but we'll have to revisit those percentages. **[Timestamp] Councilmember Dave Thiede:** Fair enough. I just caught it and it didn’t make sense. **[Timestamp] EDA Member Scott:** I just have one question about traffic. I know it was addressed in our packet, but for people watching—there's a lot of traffic in that area. Do we think the traffic management there is enough to handle 144 units? **[Timestamp] Jennifer Levitt (City Administrator):** Mayor, members of the EDA, the street itself feeds onto Hardwood, which can support over 15,000 cars a day. We haven't hit that. We are also closely monitoring the Hardwood Court intersection. We will see an improvement at Hardwood and 80th in 2026. We don't anticipate negative traffic impacts at this time. **[Timestamp] Mayor Myron Bailey:** All right. We have three recommendations. We can do them in one motion if you choose. **[Timestamp] Councilmember Justin Olsen:** Mayor, I'll move that we adopt Resolution 2024-01 approving the modification to the development program, adopt Resolution 2024-02 authorizing the interfund loan, and finally move to authorize the contract for private development between the EDA and Roers Cottage Grove Apartments LLC. **[Timestamp] EDA Member Jean Baptist:** Second. **[Timestamp] Mayor Myron Bailey:** Second by EDA Member Jean Baptist. Any further discussions? Seeing none, all those in favor signify by saying aye. **[Timestamp] Multiple Speakers:** Aye. **[Timestamp] Mayor Myron Bailey:** Opposed? No? [One dissent heard]. Motion carries 5 to 1. Thank you guys for coming. Next is 4.4, the Doodle Art program. Gretchen? **[Timestamp] Gretchen (Economic Development Staff):** Thank you, Mayor. On January 3rd, the list of 20 unique people and 50 places and things was finalized by Council. Next step, staff is gathering photos for the artist, Eric Dowdle. He will visit the city next week, January 16th through 18th. On January 18th, we will host a breakfast at River Oaks from 8:00 to 10:00 AM for all boards and the people proposed to be in the painting. We are working toward a June 13th unveiling event. **[Timestamp] Mayor Myron Bailey:** I will just mention, the Council tried to pair down the list last week. If you have thoughts, plan on attending that breakfast. **[Timestamp] Councilmember Dave Thiede:** Looking at the list of people, six of the first seven are current elected officials. I don't want the impression that this is a city-funded reelection campaign piece. I was hoping it would be more of a look into our past. I’m not thrilled about that. **[Timestamp] Jennifer Levitt (City Administrator):** Mayor and members of the EDA, that was a lengthy conversation. In other cities, the current Council was usually present. The Council's thought process was that if we identify a historical place, like the Ferber Barn, we represent the place rather than the specific historical people associated with it to allow for more diversity in the modern people represented. **[Timestamp] Councilmember Justin Olsen:** I brought that forth in the workshop as well. I wasn't sure having four faces of the current Council was necessary, though I did advocate for Mayor Bailey because he is tied for the longest-serving mayor in our city's history. This puzzle will last in perpetuity. I acknowledge it’s a fair question, but I tend to lean toward the staff recommendation. **[Timestamp] Mayor Myron Bailey:** And for me personally, I wasn't advocating for myself. We also included royalty for the Ambassadors, former County Commissioner Myra Peterson, and current Commissioner Carla Bingham. We tried to find people born and raised here. **[Timestamp] Mayor Myron Bailey:** We’ll move to 4.5, Business Retention and Expansion (BR&E). **[Timestamp] Gretchen (Economic Development Staff):** The BR&E program is an effort to retain existing businesses. It was kicked off in 2017. We had some staffing changes in 2022-2023 that delayed visits, but we are resuming in 2024. We will discuss the work plan in a workshop at your February 13th meeting. This is a report only. **[Timestamp] Mayor Myron Bailey:** We want to make sure existing businesses are sustained. Any other EDA comments? I also talked to our two members whose terms we thought were ending, but because of the change with COVID, they do not have to be outgoing, so they have agreed to stay on for this next year. We are now at adjournment. **[Timestamp] Councilmember Justin Olsen:** Move to adjourn. **[Timestamp] EDA Member Scott:** Second. **[Timestamp] Mayor Myron Bailey:** All those in favor signify by saying aye. **[Timestamp] Multiple Speakers:** Aye. **[Timestamp] Mayor Myron Bailey:** We are adjourned. Thank you all very much.