HomeMy WebLinkAbout2014-10-14 PACKET 04.A.01.
To: Economic Development Authority
From: Ryan R. Schroeder, City Administrator
Date: October 10, 2014
Subject: Development Update
Building Permits:
Enclosed, please find spreadsheets denoting construction activity in Cottage Grove YTD
through September, 2014. Total permits in September were for a value of $3,206,445 with
$35,718,229 created during the first nine months. That puts us on a pace to finish the year
with $40-$45 million in total permit volume. That puts us at about par with performance of the
past five years. From a housing perspective we are currently at 56 homes YTD and if we finish
2014 as we typically do we would be looking for between 65-75 new homes by year end. Of
note is that permit values for new homes are currently at just about $293,000 on average
which is a very strong metric resulting in retail value averages in the vicinity of $400,000.
One of the economic indicators we also track is unemployment. It is notable that for August
the unemployment rate in Cottage Grove has dropped to 3.5% which is a level last seen in
2006. The National unemployment rate in that same month was at 6.1%.
Commercial Development projects:
There are a number of remodel, expansion, and tenant build out projects nearing completion
(such as Kok Funeral Home, Chipotle, Noodles, Taco Bell, etc) and a number of future projects
either in the queue for 2015 (Summerhill Senior Housing) or at some level of negotiations or
design development (Gateway Lodging, Home Depot, HERO Center). While we are
approaching a few ribbon cutting events we are yet to schedule many of these. For other
projects we continue at a position where confidentiality is required.