HomeMy WebLinkAbout2014-11-12 PACKET 04.A.01.
To: Economic Development Authority
From: Ryan R. Schroeder
Date: November 5, 2014
Subject: Development Update
As the EDA is aware it is a challenge for staff on how to keep the Board appropriately informed
of project activities and expected projects while at the same time assuring confidentiality is
maintained with development partners. We have been working with various development
interests, some for a very long period of time, which may result in positive development results
in the 2015/2016 timeframe as follows:
A. Hillcrest development, which presented to the EDA a few months ago, has closed on
the real estate formerly owned by Lyman Lumber which is the northern most parcel on
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Hemingway north of 95 Street in the Business Park. While in 2005 OPUS took an
option on a portion of the Business Park (they never took title) this is the first time we
have had a Commercial Developer gain site control of property within the park. We
anticipate kicking off an in-house marketing strategy meeting with Hillcrest on
November 13.
B. We are currently working with four existing business park businesses expressing an
interest in expansion projects. We anticipate that we will see projects come to fruition
for at least two of these during 2015.
C. We have been working with a potential new business opportunity on a 24 acre site off
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97 Street. The EDA has authorized a development agreement for this project in the
past. Under separate cover we will be recommending minor amendments to that
agreement in order to improve the opportunity that this project comes to fruition.
D. Manufacturing Solutions, the purchaser of the former USPS facility on East Point
Douglas is conducting an expansion of their facility. A footing permit has been issued
for the project underway on the east side of their facility.
E. Prior to the EDA meeting we will have celebrated two commercial ribbon cuttings at
American Donor Services in 5,000 SF (November 5) on East Point Douglas and Kok
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Funeral Home (November 9), which expanded its facility on 80 Street.
F. Wedding and event facilities on East Point Douglas (Hope Glen Farm) and Lamar
Avenue (Butt Banquet Facility) are expanding with permits in process for Corn Crib
remodeling/Tree House footings and restroom/changing rooms respectively.
G. We are working toward development of the Oakwood Commercial site for a lodging
project (see separate agenda item).
H. Ditto for re-use of the former Golf Dome Property on West Point Douglas (see separate
agenda item).
I. Point Douglas Plaza (7180 East Point Douglas) is the redevelopment of the former
Hollywood Video store and is now home to an At&T store (ribbon cutting on November
17 at 11:30 AM) and future home for Noodles (December 15 opening scheduled) and
Chipotle.
J. We have been assisting in the location of a new financial institution for the community
since mid-summer and anticipate realizing completion of their site search yet this year
or early 2015.
K. United Properties has been working toward additional rehab improvements to their
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property at 80 Street and Hadley during 2014 for a possible 2015 project.
L. There are three additional rehab/redevelopment commercial projects that have been
under discussion/negotiation during 2014 with varying levels of likelihood as 2015
projects.
M. We anticipate a lease being entered before year end at the former Blockbuster space at
Jamaica Square (8461 West Point Douglas) and have been notified that a tenant has
entered a lease at 8599 West Point Douglas (Bulletin License Center building).
N. 2014 residential projects have included Summerhill Crossing (2015 Senior housing
project construction), the Bothe property (2015 or 2016 construction by Lennar), East
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Ridge Woods (DR Horton), Cayden Glen (Lennar), Everwood 4 (Custom One Homes),
Oak Cove (Meridian development / Capstone builder), Mississippi Dunes (44 lot final
phase with developer/builder interest), Kingston Grove (11 lot potential subdivision north
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of 77 and west of CR 19 currently in builder pre-sale phase), and Riverstone (for which
a concept approval has been processed for Capstone).
O. On November 6 we granted a purchase agreement extension to February 13, 2015
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towards the sale of 8323 81 Street. This is a foreclosed property for which we are
acting as the estate trustee. We have gained an offer approval from CITI Bank which
holds the first mortgage and are working toward same with US Bank which holds a
second.
P. We continue to work with our partners IHCC, Regions Hospital, and the City of
Woodbury toward completion of the HERO Center Business Plan. We are targeting a
state approval of the plan early in 2015.
Q. 2014 Building Permits YTD
Through October we have issued $40,836,274 in total construction permits. This level
of activity is at the mean of the past five years. However, with 12 new residential
permits in October we are 50% above YTD production of the past five years in that
category. Moreover, at an average per unit value of $300,452 that measure is at 9.8%
above the mean of the same period. We will undoubtedly beat our budgeted estimate
of 70 new homes for the year as well.