Cottage Grove board ends option to buy Learning Ladder, keeps room tax at 8% and approves swim‑school addition

The Village of Cottage Grove Board on April 7 met in person at Village Hall and by Zoom and took a series of land‑use, budgeting and ordinance actions, including terminating the village's option to buy the Learning Ladder property, keeping the room‑tax rate at 8 percent and approving a 3,000‑square‑foot accessory building for Dolphin Swim Academy.

Board members discussed the Learning Ladder option first after staff said the village held an option to buy the property for $1,400,000 with an April 26 deadline to exercise it. Staff presented the board with the choice to buy the property, continue evaluating alternative uses (including a community center or a parks-and‑recreation location) or let the option lapse. After discussion about the short time available to complete the financial and operational feasibility work, a board member moved to terminate the option; the motion was seconded and passed by voice vote.

Why it matters: terminating the option frees the village from having to exercise the purchase by April 26 but also means the property would return to the open market unless the village negotiates a later purchase. Board members asked staff to prepare cost and operating estimates should the village later decide to pursue the site for parks and recreation or a community center.

The board also considered a tourism and room‑tax request from the Comfort Suites hotel and the tourism commission. Tourism contractor reports showed the village collected about $136,000 in room tax in 2024; roughly 70 percent (approximately $95,301) is earmarked for the chamber/tourism activities under the village’s existing agreement. The tourism commission recommended consideration of reducing the rate from 8 percent to 7 percent to try to increase occupancy; tourism representatives said the change would be roughly $1–$2 per night for a typical room. After hearing the chamber’s presentation on marketing, grant programs and plans for a Discover Wisconsin video and other outreach, the board voted to retain the 8 percent rate. Staff noted state law caps the general municipal room‑tax rate at 8 percent.

On land use, the board approved two related applications for Dolphin Swim Academy: a conditional‑use permit for group day‑care uses and a site plan for a roughly 3,000‑square‑foot accessory “community building” behind the swim school. Owner Britney Ballwike told the board the building would be used for summer camp and related activities and explicitly said, “I am not building a day care,” while noting the group‑day‑care classification applies to the proposed programmed uses. Planning staff and the planning commission recommended approval with landscaping and elevation conditions.

Other planning approvals included the ETJ final plat for Kennedy Hills and a conditional‑use permit for Mr. Queso LLC at 1609 Landmark Drive (the former BB Jacks space); both received planning commission recommendations and board approval.

The board addressed several ordinance changes. It formally repealed Chapter 113 (amusement arcades and devices) and approved Ordinance 052025, which amends Chapter 130‑35 to reduce the routine fire inspection frequency from two inspections per year to one per year (with the revised schedule required to be within 15 months of the prior inspection). The board also approved a zoning text amendment to keep the library parking requirement at one parking stall per 400 square feet after the required re‑notice was completed.

Beekeeping: the planning commission had recommended allowing backyard honeybees in certain single‑family districts with limits (no more than four hives, rear‑yard only, hive volume limit, flyway barrier, 20 feet from property lines, removable frames and a required water source). During board discussion several members raised concerns about neighbors with severe allergies and asked for a way to notify nearby residents. The board directed staff to return the draft ordinance with a neighbor‑notification mechanism added (a template notice and a specified notification radius) rather than requiring a conditional‑use hearing; the board did not enact the ordinance at this meeting and asked planning staff to prepare the notification language for future consideration.

Finance and budget matters included a budget amendment to account for escrow/expense items tied to the Learning Ladder evaluation work. Staff reported roughly $142,001.42 in total expenditures from library planning efforts across 2024–25. Board members asked staff to clarify whether a prior donation from Amazon intended for library planning carried any restrictions and to report back on the donor’s stated intent before reallocating or absorbing those funds.

Other reports: Deer Grove EMS reported a year‑to‑date call volume increase (on pace for about 1,700 calls in 2025 versus 1,420 in 2024, an ~18 percent increase). The tourism contractor reported the chamber and tourism entity are operating under a roughly $100,000 annual budget and highlighted marketing and a modest grant program designed to attract overnight stays.

Votes at a glance - Terminate option to purchase Learning Ladder property (option price $1,400,000; April 26 option deadline): motion to terminate passed by voice vote. - Repeal Village ordinance Chapter 113 (amusement arcades/devices): motion passed by voice vote; chapter text removed. - Keep municipal room tax at 8% (tourism commission recommended considering 7%): motion to retain 8% passed by voice vote. Staff noted 8% is the statutory maximum under current law. - Approve conditional use permit (group day care) for Dolphin Swim Academy, 1500 Landmark Drive: motion passed. - Approve site plan for ~3,000 sq. ft. accessory “community building” for Dolphin Swim Academy: motion passed. - Approve ETJ final plat for Kennedy Hills (final plat of Kennedy Hills): motion passed. - Approve conditional‑use permit for Mr. Queso LLC at 1609 Landmark Drive (indoor commercial entertainment, serving alcohol): motion passed. - Approve Ordinance 052025 amending Chapter 130‑35 (fire inspection frequency from two to one per year, with a 15‑month window): motion passed. - Approve zoning amendment O02/2025 to set library parking at 1 stall per 400 sq. ft. (re‑noticed): motion passed. - Approve budget amendment 2025‑004 to account for Learning Ladder‑related expenditures/escrow reclassification: motion passed. - Motion to enter closed session under Wis. Stat. 19.85(1)(e) to discuss lease extension at 123 E. Cottage Grove Road, Unit 9: motion to go into closed session was made and seconded; board took the roll call to enter closed session.

What the board did not decide tonight: the board did not commit to purchasing the Learning Ladder property or to a specific community‑center plan; it ended the option and asked staff to prepare additional feasibility information for a later date if the board wishes to pursue the property again. The board also did not adopt the beekeeping ordinance as written; instead staff were directed to add a neighbor‑notification requirement and return the draft.

Ending note: board members asked staff to prepare more detailed operating and renovation cost estimates if the board wants to revisit acquiring the Learning Ladder site, and to clarify any donor restrictions on previously received library planning funds before the village applies those funds to any budget items.