The Village of Cottage Grove Board of Trustees on Dec. 1 deferred action on a pre‑annexation agreement with Newman Companies for a proposed 120‑acre subdivision east of Port Ridge, voting 5–1 to table the matter and ask the developer for a more complete annexation package.
The board’s direction came after about an hour of public comment and a lengthy trustee discussion that centered on neighborhood impacts, whether the plan creates a problematic annexation ‘island,’ fiscal effects on village services and evidence of outreach to a nearby property owner known in the record as the Banigan family. Developer Steve Vicleen said Newman had reached out to the Banigans, offered to pay for an appraisal and to guarantee the property value, and proposed paying to connect the family’s house to water and sewer if they chose to annex.
“The Banigan’s have been great productive members of this community for many years, and I truly hope that they are made whole with this abrupt change to their lifestyle,” resident Zach Foy told trustees during public comment, asking for a softer transition and more green space adjacent to existing rural lots.
Trustees pressed for specifics. Board members said the draft pre‑annexation lacked a legal description of the parcel (an exhibit the board identified as integral), and several raised the risk of creating a ‘town island,’ which can conflict with state annexation statutes. Trustee Pete (by public roll call) moved to table the pre‑annexation agreement until the developer produced a revised package showing a clear boundary, resolution of the Banigan parcel and additional information about stormwater and road connections; Trustee Kel Nelson seconded. Roll call recorded Benzo Aye, Dahl Aye, Kel Nelson Aye, Murphy Aye, Severson No, Stoa Aye. The motion passed 5–1.
Village staff and consultants described next steps in the land‑use process: the developer must submit a formal annexation petition and a preliminary plat, the state will issue a 30‑day review letter on annexation, a neighborhood meeting is required for property owners within 400 feet, planning commission public hearings will follow, and a traffic‑impact analysis would be required with the preliminary plat. Rick (village legal staff) emphasized that a pre‑annexation agreement does not obligate annexation or rezoning; those occur later as separate actions.
Trustees split on the development’s fiscal effects. Supporters and staff noted the project’s ability to underwrite fixed capital costs — a lift station the developer will construct at its expense, impact fees and the potential to broaden the tax base — while others warned incremental operating costs (fire, police, EMS, schools) often absorb new revenue and urged caution before expanding the village footprint into farmland.
Developer Vicleen stressed that the project includes a 13‑acre central park and that Newman is prepared to negotiate terms to address board concerns. Several trustees recommended phased options — annexing portions of the site now while leaving contested parcels for later resolution — or returning with a reconfigured concept that eliminates the appearance of a town island.
With the motion to table approved, trustees instructed staff and the developer to continue public outreach, provide a clear legal exhibit of the annexation area, clarify stormwater arrangements with the Town of Cottage Grove, and return to the board with a revised package. The board also noted that final action on annexation, rezoning and any development agreement would come only after required hearings and documented technical studies.
The board’s tabling vote is the most recent procedural step; the developer can revise the concept and return to a future meeting for additional consideration.