HomeMy WebLinkAbout2014-05-13 PACKET 04.A.
To: Economic Development Authority
From: Ryan R. Schroeder
Date: April 29, 2014
Subject: Development Update
Property Tax/ Market Update
According to a report from the Washington County Assessor’s office estimated market values
for purposes of computing property tax are on the rise in Cottage Grove and throughout the
County. Commercial property continues to lag the balance of the property classes. Following
is summary data for Cottage Grove.
Property Type 2013 Value 2014 Value Percent Change 5 Yr Percent Change
Agricultural $ 125,279,900 $ 132,808,400 6% (4.4%)
Apartments $ 52,909,100 $ 52,909,100 0% 12.5%
C/I $ 245,384,500 $ 249,415,200 (0.8%) (11.9%)
Residential $2,178,900,700 $2,458,812,800 12.2% (3.7%)
Total $2,602,474,200 $2,893,945,100 10.4% (4.2%)
According to the County they are anticipating continued growth for 2015 values.
According to the Edina Realty website there were 900 recent sales in Cottage Grove of single
family homes (including new construction and existing properties). Those sales ranged from
$77,000 up to $585,000 with the midpoint at about $205,000. According to the same source
there are 65 current single family listings in Cottage Grove ranging from $167,500 up to
$595,900 with the midpoint at $240,000. It is typical in this current market for actual sales
price to be at or about 95% of list price on average (which would be $228,000).
The County HRA has reported that foreclosures are also declining for 2014. Countywide, YTD
foreclosures are at 102 which is at a pace of about 400 for the year. This compares to 591 for
2013, 904 for 2012, 1081 for 2011 and a high of 1281 in 2010. In Cottage Grove our YTD
number is at 19.
The HRA also recently contracted with Maxfield Research for a market study. One of the
conclusions is that between 2013 and 2020 there would be market demand for single family
housing in Cottage Grove of 350 units/year.
There are currently a number of new subdivisions in some phase of discussion or review within
th
the community. Some, such as Oak Cove (12 lots), Everwood 4 (10 lots) Cayden Glen (92
stnd
lots), and Eastridge Woods 1 and 2 (74 lots) have received recent final plat approval.
rd
Preliminary plat approvals have been received for Eastridge Woods 3 (39 lots), Lehigh Acres
(39 lots; on the market at $88,667/lot) and McHattie Farms (2007 pre plat of 93.93 acres; on
the market at $127,630/acre).
Concept approval has been received for the Bothe property (302 lots), Wolterstorf/Ryland
(133 lots) and there is an upcoming review of the Swanland property (320 lots).
All in the above suggests that an economic uptick will continue in the residential market. This,
in turn, should have an impact on the other market segments. One caution is that not all of
these developments will proceed in a timely fashion. We currently have under 200 improved
single family lots in inventory. Hence, absent additional lots coming on line during 2014 our
2015 construction activity could be constrained below levels demanded by the marketplace.
Goodwill Ribbon Cutting
The ribbon cutting for the grand opening for this store took place on April 26. Parking for the
event overflowed the lot and absorbed parking spaces at Ruby Tuesday and along Harkness
Court!
Business Expo
The Expo this year was held on April 26, which was the first time this event has been hosted
on a Saturday. Preliminary reviews have been mixed. The Chamber is currently compiling
input for future events.
Remodeling/Refurb Projects:
Projects are currently underway or anticipated to commence soon on the following
property improvements:
Target Parking Lot
Kok Funeral Home
Burger King
Taco Bell
BEC/Public Works potential Solar Project
The City applied for an authorization from the Xcel Solar Rewards program. We received a
preliminary authorization for a 40KW array at the BEC with an 11KW array at the Public Works
building. We are currently evaluating the economic metrics for a possible project.
Building Permits
New construction residential permits are now at 23 YTD through April. Average per unit value
for single family homes is at $293,662 which is 5.6% above 2013 year end values. As
reported earlier that equates to retail sale values from the high $300,000’s to mid $400,000’s
on an average basis. Commercial permitting YTD includes the 12,576 square foot G-Will
store, interior permits for Da Vi Nails and Subway at Wal-Mart, and additional remodel projects
for Old Thyme Fudge & Ice Cream (8800 E. Pt. Douglas) My Dog Spot (7155 Jorgenson), the
Chiropractic office at 8800 E. Pt. and the Verizon build out at the BEC. Also included is what
was approved as a temporary 60,000 square foot structure at Aggregate Industries for the St.
Croix Bridge Project. In total we have issued $12,588,092 in permits over the first four months
of 2014.
Bond Sale
On May 7, 2014 the City Council refinanced the TIF 1-12 taxable bond issue. Our S&P rating
was reaffirmed at AA+, we had 10 bidders on the issue and the low bidder was at 1.8%!
Building Permit Comparisons 2001 to YTD
Commercial/Institutional Permt Values
Month20012002200320042005200620072008200920102011201220132014
January1,101,864
511,4553,659,480532,996162,307269,606358,1411,371,478845,242164,8307,83153,41612,130,808727,551
February345,350
15,000182,039484,100889,425158,7981,021,749230,1852,084,0802,371,99247,00034,18021,0771,419,390
March2,032,315
2,466,820228,5701,606,829170,0681,089,615342,5932,106,5054,276,745169,9061,091,611228,795471,167870,913
April439,475
2,486,9308,940,5692,156,900811,8252,738,356236,8201,250,86520,262,2621,329,6545,123,26423,5452,527,0054,899,578
May
545,3481,209,7451,616,822326,8903,424,1297,789,54318,022,3864,531,7523,656,3001,777,768291,4251,392,5101,389,269
June
10,549,9514,271,8971,199,715670,981971,3911,362,638381,3606,527,902171,780657,028997,2755,728,62119,644,462
July
2,608,5571,254,080153,6242,136,715182,847272,7481,062,400799,866684,810423,50116,900243,6331,022,515
August
11,869,6711,672,539505,5472,830,438904,4101,918,075839,536170,764779,65074,73093,200524,168589,250
September
161,4141,435,43381,3631,564,731364,6874,351,5891,082,302677,168440,9761,086,92543,5761,978,570521,569
October
26,317,7591,867,2276,271,769627,4592,152,5991,505,8425,363,5653,864,6171,219,028637,620123,953175,0511,587,665
November
300,0281,186,572189,4201,357,167201,0852,371,6007,040,83844,06513,980466,343916,554887,300966,754
December
1,458,47771,200179,6841,263,613558,481958,442693,566636,840800,952101,22063,5437,330,938986640
Total
59,291,41025,979,35114,978,76912,811,61913,016,00422,489,78039,444,98644,721,30311,812,85811,494,8412,886,36233,410,84834,625,556
C/I only3,919,004
15,918,85721,119,91013,475,28311,296,47112,279,49414,848,58035,474,486*7,160,8955,124,2195,560,6371,351,74929,798,38334,447,456
*includes two multi-family projects in 2007 at $16,709,425
Residential New Construction Permit Units and Values
Month20012002200320042005200620072008200920102011201220132014
January
4172035261624431417
February
6441013261249542102
March
1030142731171067763712
April
11174123171594522522
May
121916253028896*515103
June
20111742142491082865
July
213317201793151014110
August
3262164402431236477
September
34152214574965834
October
66727166205363735
November
351020104675431077
December
1975919765435335
Total23
18229628430826518567896689505356
Total Value6,252,706
25,943,89741,334,68853,001,63960,414,62654,097,53349,931,36321,896,19325,902,26617,049,31915,702,60514,251,04615,354,80114,154,575
Per/SF271,857
142,549139,644186,625196,151204,142269,899326,809291,037258,323277,355290,084289,713252,760
*includes 44 multi-family at $3,221,639
Total Permit Value Comparisons including Residential Remodels
Month20012002200320042005200620072008200920102011201220132014
January4,121,669
1,467,3987,501,3433,903,9856,319,2686,462,0745,179,2392,274,4612,866,3091,714,2511,209,940717,24913,456,6511,244,770
February1,490,504
1,462,5026,585,5873,211,4993,737,9365,634,6615,324,9852,147,1595,209,1424,289,2211,486,745854,680649,0521,789,634
March5,379,840
5,026,3296,349,5565,377,7296,126,2417,359,7796,384,8726,171,1126,652,4912,184,3673,978,1622,510,7841,853,8142,694,922
April1,596,079
5,422,72114,384,8479,214,5826,814,1677,842,3725,822,4445,185,33122,276,2893,458,6086,674,5081,453,2564,661,4576,038,649
May
3,842,2847,623,3996,367,4796,920,2609,612,54514,527,63122,603,8358,812,0646,579,1508,558,9223,046,2135,455,5933,086,085
June
14,957,5009,142,4756,154,23911,110,4256,008,34910,627,3944,916,95211,187,0963,778,7162,539,1324,627,7188,449,85521,865,244
July
6,427,3808,247,0125,199,6347,168,9115,489,9523,903,2283,609,8645,976,5014,724,9073,416,1762,377,9211,881,5064,795,916
August
14,614,7497,300,2525,937,70016,100,3249,931,7238,748,1033,138,3764,733,8913,170,1085,890,8162,667,4473,968,2523,275,696
September
7,074,3516,517,1815,873,5635,872,2902,863,9017,400,5044,002,1684,299,5354,306,2276,300,0072,896,0703,623,5812,274,280
October
31,384,44711,730,88312,979,2235,889,2034,630,8586,409,3588,617,2525,812,0124,206,8864,781,8862,936,7791,947,4193,974,184
November
7,264,4354,091,5765,364,6864,303,0028,252,0965,451,56310,291,1622,125,5652,203,7372,198,2841,682,6943,624,3213,408,380
December
5,896,9132,058,45410,380,9005,197,5323,078,3263,236,4072,978,1682,106,2142,331,5982,022,7411,748,9648,699,8202,880,852
Subtotal12,588,092
104,841,00991,532,56579,965,21985,559,55977,166,63683,015,72875,935,84082,057,10942,947,77649,057,31927,519,77558,271,32157,328,612
Note: Includes commercial/institutional, residential, and remodels
0 10000000…YP0 22222221111111111111111110 0 2222222111111111111111111
Commercial / Institutional Construction Activity
1982 to YTD
Number ofValue of
CommercialCommercial
YearPermitsPermits
198262824,118
1983685,670,406
1984683,264,830
1985907,109,090
19861204,955,859
70000000
198789594,116
1988481,925,598
60000000
1989766,221,317
19906618,546,066
1991795,245,738
50000000
1992665,482,604
1993199378788,240,5288,240,528
40000000
1994894,758,131
19959911,058,484
199617714,761,348
30000000
19971649,550,499
199812118,634,862
199914111,007,052
20000000
20001266,626,871
10000000-1E+08
200114859,313,232
C…
10000000
200221525,989,351
100,000,000
200315714,978,769
200421712,811,619
0
200522413,590,114
135791113151719212325272931
200619322,489,780
200716639,444,986
Yr 200817944,736,304
Yr200913611,812,858
201013111,494,841
20111202,886,362
201223033,410,848
201328334,625,556
2014 YTD1043,919,004
City of Cottage Grove
Residential Building Permit History
YearPermits
1990313
450
1991270
400
1992417
1993373
350
1994425
300
1995392
250
1996321
1997213
200
1998220
150
1999186
20002000145145
100
100
2001182
50
2002296
2003284
0
1234567891011121314151617181920212223
2004308
2005265
20061851990 Pop.22,935census
2007672000 Pop.30,582census
200889Proj.2010 Pop.34,589census
2009662012 Pop.35,187Met C.
2010892020 Proj.44,000Met C.
2011502030 Proj.53,000Met C.
201253
20135635
YTD 20142370
2015100
Residential Construction Since 1970
Single/
AttachedPeak
450
YearResidentialCityNat'l
UnitsRecessionUnemploy.Unemp.
400
1970162Start 12/69 End 11/706.10%
1971356
350
1972248
1973220Start 11/73
1974213
300
1975189End 3/759.00%
1976209
250
1977250
1978255
200
1979251
1980202Start 1/80 End 7/807.80%
150
1981116Start 7/81
198246End 11/8210.80%
100
198377
1984150
50
1985100
1986196
0
1987273
1591317212529333741
19881988404404
19891989251251
1990329Start 7/903.50%
1991270End 3/914.50%7.80%Note: Unit counts do not include
19924104.30%157 unit Norris Square or 84 unit
19933733.60%White Pines senior housing
19944062.70%
19953822.60%
19963002.60%
19972052.10%
19982181.90%70-79: Ave of 235/year
19991841.80%80-89: Ave of 182/year
20001452.40%90-99: Ave of 308/year
2001182Start 3/01; End 11/013.00%6.30%00-99: Ave of 189/year
20022963.70%Total of 223.5/year
20032844.10%
20043084.00%
20052653.50%
20061853.50%
200767Start 12/073.90%
200889continue4.90%
200966End 6/097.50%10.20%
2010456.10%
201150Dec-115.30%8.50%
20125312-Aug5.50%8.10%
201356Nov-133.90%7.00%
201423
Total9359
AverageAverage212212
employment data from www.economagic.com
To: Economic Development Authority Members
From: Alicia McMonigal, Economic Development Assistant
Date: April 29, 2014
Subject: BR&E Update
The Business Journal prints filings for new corporations and assumed names. Most are home based
businesses.
Grove Tobacco, Inc.8461 E. Pt. Douglas Rd. S.March
Presidential Recovery Services, LLC.6127 Hearthside Ave. S.March
Arejay Electric, LLC. 10950 Kingsborough Ct. S. March
Tschida Town Square, LLC. 11350 Kingsborough Tr. S. March
Ellingboe Transport, LLC. 8676 Indian Blvd. S. March
Affinity Home Healthcare 8697 Joliet Ave. S. April
PPFguys, LLC.8565 Ivywood Ave. S.April
PTFT Group, LLC. 6331 Goodview Bay S.April
Pellino Security services, LLC.8625 Joliet Ave. S.April
T&S Heating & Air Conditioning, LLC.8617 Ironwood Ave. S.April
Team Turnt Up Entertainment, LLC. 7602 Hinton Ave. S. April
Balance From Within, LLC. 9561 Dunes Court S. April
EDA Action: Informational Proposes Only