HomeMy WebLinkAbout2015-02-10 PACKET 04.A.01.
To: Economic Development Authority
From: Ryan R. Schroeder
Date: February 4, 2015
Subject: Development Update
Building Permits/Construction Activity
Per the enclosed the City issued permits for just over $45.7 million in residential,
commercial and residential remodeling activity during 2014. That is slightly (2.76%) below the
average production of the prior five years. However, January 2015 production was almost
30% above the average permitting during January since 2006 ($4,465,404 total permitting in
2015). Further, City staff is working on projects currently slated for 2015 that signals positive
construction activity for this year.
Residentially, we continue to project 70 new single family homes during 2015. This
modest pace is due to continued developer hesitancy to take down property too much in
advance of immediate construction demand. Of note, however, is that issued single family
permits during 2014 had risen to an average of $302,800 which is an increase of 9.5% over
the average value of the prior six years. Further, this permit value indicates a retail sales value
likely in the low $400,000’s. We anticipate the upward value trend will continue for 2015.
From a commercial perspective, the footing/grading permits for Leafline Labs had been
issued in 2014 while the permit for the building itself was issued in January. The building
should be closed in before the end of February. Diversified Manufacturing, in the former
ICHOR building at 9850 Hemingway is conducting a 2,664 square foot interior remodel. The
BEC contributed to January activity as well with the C.O. issued for the American Nursing &
Tech Institute in the lower level of the building. Two to three additional expansion projects are
anticipated this year in the Business Park. We also anticipate construction of the Summerhill
Senior Housing project (now at 84 units) to commence between mid-summer and mid-fall
2015.
Southeast Industrial Park
Hillcrest Development purchased the 40 acre parcel at the northern most point of
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Hemingway Avenue, north of 95 Street late 2014. They are getting ready to roll out their
marketing of this parcel and have branded the area as the SE Industrial Park. They have
formed a development partnership with OPUS and with Colliers for their brokerage services.
OPUS had optioned a portion of the WAG Farms property in 2005, since expired, so they have
some familiarity with the market and the business park. It is expected that the development
team will be at the EDA in March or April to present their development plans and perspective.
HERO Center
City staff have been working with representatives from Inver Hills Community College, Regions
Hospital, and the City of Woodbury to bring this project to fruition. The project was granted a
development assist with a $1.46 million design development grant from the State Bonding Bill
during the 2014 legislative session. Recently, Inver Hills has determined to not move its EMS
education program to the facility (still bringing Criminal Justice here). This significantly impacts
the size and scope of the project. As a result, the partners are suggesting a need to amend
the state bonding allocation language to provide flexibility in the location of the project.
Essentially, we are anticipating that with the reduced building size we are able to take
advantage of other available sites and perhaps existing buildings to get the project
accomplished but at a lower cost.
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70 Street Master Plan
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70 Street is a crosstown County highway connecting State Highway 95 to US Highway
61 across the northern tier of the community. The County had been intending to conduct a
corridor study (master plan) for the section of the roadway between Jamaica and Highway 61.
In meeting with the County staff and our Commissioner in late January it was determined that
an improved result could be gained be expanding the planning district to the entire corridor.
The County intends to kick off this planning activity in March, 2015.