HomeMy WebLinkAbout2014-06-10 PACKET 04.01. C.� Cottage
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To: Economic Development Authority
From: Ryan R. Schroeder, City Administrator
Date: June 5, 2014
Subject: Development Update
Building Permit Activity
2014 currently is on pace to emulate activity levels of the past five years. At just over $17
million in permitted activity through May we will likely end the year somewhere in the $45
million range in total permit production. The residential sector would be expected to lead the
rebound and this appears to be the case at 33 permits YTD after 10 new permits in May. We
are on a pace to permit near 100 new homes for the year (budget projections were at 70).
Continued new home sales will be dependent upon lot availability, which continues to be
constrained below levels that we believe could be supported by market demand.
We are similarly on a fairly typical pace for commercial permitting in comparison to the past
five years (likely above 2009-11 levels but below 2012-13 activity). While we have had a
number of remodeling and tenant build out projects all have been small in scope and permit
value. Residential remodeling likewise appears on a typical pace from past years with a
typical year at $10 to $12 million in total production within this category.
A notable update to the enclosed "Residential Construction since 1970" exhibit is that the
reported unemployment rate for Cottage Grove has dropped to 3.6°k as of April 2014. This
rate is slightly below the pre-recession average between 2002 and 2006 and is over 40°k
below the current national unemployment rate for April of 6.3°k.
Hollywood Video Redevelopment
Both Chipotle and Noodles have signed leases with the owner of this property for a late 2014
occupancy. Demolition of the existing structure is currently scheduled for June 10.
Home Depot
As has been reported there is a new developer pursuing repurposing of the Home Depot
property. We have been in contact with this new player which reportedly has a signed
purchase agreement with an intent to effect a quick no contingent close. This developer has
re-initiated lease discussions with many of the retailers having expressed an interest in this
location in the past.
G-Wil I
Their new liquor store currently under construction at the corner of 80�h and Hadley is
scheduled to be open for business on or about June 16, 2014.
BEC Verizon Wireless
Verizon has leased both tower space and interior garage space at the BEC. They needed a
261 SF corner (14' x 18'8") of the garage for their cell equipment. The rough in for that space is
essentially complete with project completion during June.
Summerhill Senior Housing
Mesaba Capital, Augustana Care, and Mike Rygh of Custom One Homes have formed a
partnership in a fashion to propose an 86 unit senior housing project at the corner of Hinton
and 70�h. They are intending to work toward a recommendation from the June 23, 2014
Planning Commission.
Hope Glen Farms Event Center
This facility, originally presented as a Barn Wedding Venue, has been in a fairly constant state
of expansion over the past couple of years. Currently, they are proposing consideration by the
Planning Commission of an 824 square foot tree house for the eastern portion of their
property. The facility would be utilized as a lodging location for persons having booked the
grounds for a wedding/reception, and perhaps others. Hope Glen is also proposing to enlarge
the existing pavilion in order to facilitate events up to 300 persons.
Kok Funeral Home
Permitted during 2013 this expansion project on 80�h Street is currently in the framing stage.
Other
. 61 Marine & Sports constructed an addition to their facility on Highway 61 which is now
complete.
. The Burger King interior remodel at Jamaica and East Point Douglas is underway; the
drive thru is still open for business during construction.
. While the Goodwill store at Hardwood and 80�h has had their ribbon cutting exterior
construction is continuing. The landscaping and second lift of their parking lot should be
complete within a week.
. Temporary fireworks sales lots were approved by the June 4�h Council for both Cub
Foods and Rainbow.
. The reclaiming/paving of East Point Douglas Road between the Wal-Mart entrance and
County Road 19 should be complete, including restoration by June 6.
. Work on the 2014 Pavement Management District south of 90�h and west of Keats
commenced on May 27. The project will be completed in three phases with final
completion this fall.