HomeMy WebLinkAbout2002.02.06 PACKET CITY OF COTTAGE GROVE
•
ECONOMIC Secretary
DEVELOPMENT
AUTHORITY
AGENDA
WEDNESDAY, FEBRUARY 6, 2002
7:30 A.M.
1. Call to Order
2. Roll Call
3. Business Items
• A. Review of Proposed 2002 EDA Strategic Plan Update.
4. Adjourn
•
J:\Economic Development\EDA Packets\2002\Agendas\February 6 Special.doc
• Revised 1/30/02
EDA STRATEGIC PLAN
2002 - 2005 UPDATE
I. Mission Statement
The Economic Development Authority works with its partners to
encourage business and industry, and the creation of quality
jobs in the City of Cottage Grove using all appropriate
development tools and methods.
As we implement this mission, we will be mindful of the
• following guiding principles:
• Encourage quality commercial and industrial development,
which enhances the quality of life for Cottage Grove's
citizens and is compatible with the City's Comprehensive
Plan.
• Consider the use of incentives in instances where they will
promote quality jobs and development for the City.
• Utilize sound financial practices in using incentives to attract
and expand businesses in the community.
• Recognize the interdependence of the private and public
sector in a healthy community and foster a spirit of
cooperation between the two sectors.
•
II. Goals 2005 •
Goal #1:
Successfully become one of the first communities mentioned as a choice
business location.
Goal #2:
Be a community that enthusiastically supports economic development as
essential to improving the quality of life in the Cottage Grove community.
Goal #3:
Create an identity for the City that is positive and proud, supporting a high
standard of living and quality of life.
Goal #4:
Support existing businesses and encourage their continued growth and
prosperity.
Goal #5:
Attract new industries to bring an enhanced tax base, quality jobs, and
new capital into the region.
Goal #6: •
Influence local, regional and state issues critical to business site location
decisions and overall business climate.
Ill. Priorities
The top growth priorities have been designated, with Group A priorities
being those with highest priority:
GROUP A: Manufacturing Attraction
Redevelopment of Existing Commercial Areas
Retail: Restaurant
GROUP B: Office Attraction
Single Family Housing: $350,000+
Retail: Big Box
Warehouse Attraction
GROUP C: Single Family Housing: $250,000-$350,000
Senior Housing
Quality Townhouses
Retail: Specialty
Satellite Campus or Technical College •
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• IV. Objectives
The EDA has updated the goals designated in the 2000-2005 Strategic
Plan and has added additional objectives for the 2002-2005 update. All
are listed below:
1. Industrial Park: Attract at least three new businesses per year.
2. Redevelop Grove Plaza by the end of 2002.
3. Secure at least two new restaurants (sit-down, eat-in) by the end of
2002.
4. Evaluate the need for additional hotel/motel facilities.
5. Develop master plan for the Langdon Redevelopment area.
6. Provide for redevelopment or rehabilitation opportunities for the 13.2-
acre Cottage Square Shopping Center.
7. Develop a Corporate Campus Concept within the Industrial Park.
8. Develop a master plan for single family residence $350,000+ for
each section of town; a different (one) section will be completed each
year.
9. Develop a Master Plan for the Industrial Park north of 95th Street.
10. Provide an analysis/plan for buffering/mitigation between industrial
• uses within the Industrial Park and residential uses to the west of the
park.
11. Propose a redevelopment/reuse strategy for reclaimed salvage or
brownfield sites within the community. Brownfield sites for review
would include nonconforming transitional uses, not including active
manufacturing locations.
12. Complete site selection process for a transit station and support
Minneapolis express bus service funding and approval.
13. Develop Gateway/storm holding project for area north of 80th Street,
west of highway 61. Development should be pursued if funding
becomes available.
14. Develop master plan for the Keats/Highway 61 intersection.
15. Develop master plan for industrial areas identified within the
Comprehensive Plan.
The EDA endorsed the proposal that the City utilize needed tools and
resources to meet the objectives acknowledging early term investment
demand but with an expectation of achieving a break-even position within
the timeframe of the project budget, consistent with this plan and with City
Council goals (Appendix C).
•
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STATUS REPORT: 2000-2001 OBJECTIVES
1. Industrial Park: Attract at least three new businesses per year.
STATUS: In 2001 the City experienced construction of the 70,000
square foot Tradehome Shoes office/warehouse, the 42,000 square
foot Advance Corporation manufacturing/office and the 80,000
square foot American AGCO Distribution/office facility in addition to
a 14,000 square foot project on the 3M campus. As a result 53
acres have been developed from the 256-acre portion of the park
currently under development. It is expected that 151 acres are
available for development within that portion of the park (outside of
52 acres set aside for easements/right of way or storm water
ponds.)
2. Redevelop Grove Plaza by the end of 2001.
STATUS: A 116,082 square foot Home Depot store is approved for
construction in 2002 supplanting 60,000 square feet of the existing
170,000 square foot Grove Plaza Center. This will further allow the
opportunity for rehabilitation of approximately 42,000 square feet of •
interior mall space and the addition of a fueling station associated
with the 70,000 square foot Rainbow Foods store.
newrestaurants (sit-down, eat-in) bythe
3. Secure at least two
end of 2001.
STATUS: Restaurant pads are available at: Grove Plaza off 80th
Street, Pine Grove development on East Point Douglas west of
Menards, Alamar Village at 70th and Keats, Semper/Walgreen's
redevelopment parcel at 80th and East Point Douglas, and the
Country Inn and Suites project site on East Point Douglas and 90th
Street. None of these sites currently has a restaurant under
construction, however, interest has been shown on three of these
sites.
4. Have at least 80 hotel rooms available by the end of 2001.
STATUS: The Super 8 is a 31-room hotel located on a private
drive east of Highway 61 and south of 80th Street. The Country Inn
and Suites will be a 76-room hotel currently under construction at
East Point Douglas and 90th Street.
•
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• 5. Define EDA role with Langdon by the end of 2001.
STATUS: The EDA received a redevelopment scenario for
Langdon during 2001. Council and the EDA jointly determined to
delay aggressive pursuit of a Langdon development pending
receipt of a significant development proposal from a third party
(although the City did purchase an 8.255-acre parcel for future
development). Instead Council created the Gateway
Redevelopment District which does not include the Langdon
neighborhood.
6. Complete a master plan for redevelopment (including Cottage
Grove Plaza, G-Will Plaza) by the end of 2002.
STATUS: Council created a 365-acre redevelopment area referred
to as the Gateway Redevelopment District. Included in this district
are the 170,000 Grove Plaza Center, 87,000 square foot Cottage
Square mall, and 55,000 square foot G-Will Center. Development
is beginning within the eastern portion of that district with
development approvals for 24,490 square feet of pad space on 5.1
acres within the Semper development, an 86,584 square foot
department store on 80th Street, and a 116,082 square foot building
• materials store/redevelopment at Grove Plaza. Master planning
activities are underway for the western portion of the district.
7. Create a development concept for Office by the end of 2000.
STATUS: No progress has been made on larger office
development scenarios pending review of either the Keats/61
development area or the Langdon neighborhood redevelopment
opportunity. A third option potentially exists by developing
corporate campus facilities within the Industrial Park.
8. Develop a master plan for single family residence $350,000+
for each section of town; a different (one) section will be
completed each year.
STATUS: Council has authorized completion of a master planning
activity within the East Ravine neighborhood (primarily agricultural
property east of County Road 19). This area will potentially be
opened for development upon completion of a new sanitary sewer
interceptor project scheduled for completion in 2003.
•
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V. Current Status •
Chronology of Events
1991
• EDA Strategic Planning Process
• River Oaks Golf Course opened (construction 8/89 — 6/91)
1992
• Creation of Economic Development Department
1993
• Initial Year of Economic Development Director (11/92 hire)
• Began Groundwork for Business outreach efforts
• Wakota Bridge Corridor Commission Incorporated
• Wakota Bridge Scoping Study Received
•
1994
• LS Power Cogeneration Plant Resolution of Support adopted
• Retail Task Force Created
• Spec Building Program Created
• Marketing Campaign Initiated
• Industrial Park Master Plan completed
• Maxfield/DSU Retail Study completed
• Wakota Bridge Feasibility Study Received
1995
• Industrial Park Zoning Text Amendments Adopted
• Tax Assistance Program Created
• Hay Group Industrial Park Feasibility Study Completed
• 95th Street Extension to Jamaica Completed
•
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• 1996
• Development Tour and Golf Outing Initial Year
• EDA Strategic Planning Process
• I-494/TH61 Major Investment Study Received
• Grove Plaza Redevelopment Agreement
1997
• LAND Program Created
• Industrial Park Floating Option Negotiated
1998
• Marketing Strategy Changes put into place
• Gained Green Acres/Tax Increment Legislation
• Renewal by Andersen Project Approved
• Completed Industrial Park Infrastructure Improvements
(Jamaica, 97th Streets and Utility extensions)
• Red Rock Corridor Commission Created
• West Draw Utility Extensions Completed
•
1999
• Restructured Economic Development Team
• Langdon Square Redevelopment Planning Grant
• EDA Marketing Plan Created
• New Marketing Materials Created
(Annual Report, Holiday Mailer, Proposal Materials)
• Economic Development Trust Fund Created
• EDA Golf Outing Reformatted
• Industrial Park Tax Increment District Created
• Manufacturing/Contractor Data Bases Created
• Public Improvement Cost Sharing Agreements Negotiated
• MCES Treatment Plant CUP approval
• Business Subsidies Policy Adopted
• River Oaks Golf Course Expansion Approved
• Fiscal Impact Analyses of Development Completed
• West Draw Water Tower Construction
• Comprehensive Plan Adopted By Council
• Created Economic Development Cable Television Production
•
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2000 •
• Development of USPS Project
• Development of CCE Project
• EDA Strategic Planning Process
• Industrial Park Infrastructure Improvements
(Jamaica Ave., Sanitary, Storm realignments, Storm
Channel Construction, 100th Street Reconstruction)
• West Draw Residential Subdivisions Initiation
• River Oaks Golf Course Clubhouse Opens For Business
• Red Rock Corridor Investment Study
• Langdon Planning District Study
• Industrial Park Storm Water Study Amendment
• Citywide Marketing Plan Adoption
• Implementation of the 2000 Comprehensive Plan
• 3M Incinerator Project on Line* (Note: 3M has completed
capital investment throughout the timeframe of this chronology)
2001
• MCES $43 million Sanitary Sewer Treatment Facility under
construction (2003 completion)
• MCES Interceptor alignment decision (2003 completion) •
• Hwy 61/Wakota Bridge funding gained (2002 project bid scheduled)
• SWWD regional storm water route chosen
• Hinton/Tower Cooperative agreement with Washington County
• Approval for 372,600 square feet of industrial space with 207,000
square feet completed or under construction, including
improvements on the 3M campus and new facilities for Tradehome
Shoes, Advance Corporation, and American AgCo
• Initiation of construction for new 76 room Country Inn and Suites
Hotel
• Approval for redevelopment of Grove Plaza
• Approval of redevelopment proposal for Kohl's Department store
• Approval of a total of 298,773 square feet of retail space
• Approval of a total of 181,668 square feet of institutional space
• Site grading for additional Industrial Park development sites with
extension of 97th Street and storm ponding facility construction
• Approval of Up North Plastics Expansion
• Construction of Office Max
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Page 8
•
Accomplishments
• Responded to 38 inquiries.
• Coordinated projects in the Industrial Park (Advance Corporation, Tradehome
Shoe Stores and American AGCO) and worked with Community
Development on commercial projects such as the Country Inn Suites Hotel,
Grove Plaza Redevelopment, Walgreen's/Semper Redevelopment project,
and the 80th Street Redevelopment Project.
• Updated our marketing folders to make sure the information is up-to-date, and
the format of all the documents is consistent.
• Began drafting the 2002 Strategic Plan Update.
• Continued the successful, recognizable ED marketing campaign and
completed a second photo shoot for upcoming direct mail and advertising
campaigns. Coordinated with Community Development in order to include
some possible housing-development marketing.
• Updated our financial approach for new projects, based on the major changes
to Minnesota property tax structure.
• Continued production of the "Your Development Partner" TV Show.
• Held the annual golf tournament, with a new attendance record. Increased
the visibility of tournament sponsors by including the names and logos of
•
sponsors on all mailings as well as in the ED Annual Report.
• Planned and organized the annual business recognition breakfast at 3M
(along with the Chamber of Commerce and 3M Cottage Grove.)
• Completed several new marketing pieces, to be included in the marketing
packets. These include: Economic Development Team Biographies
brochure, Development Update, "Your Future, Our Future."
• Continued to add to our Economic Development database, which now
includes over 1800 names.
• Updated the Economic Development WEB Page and Community Profile.
• Worked with Engineering staff on storm water drainage plans and site grading
plans.
• Creation of TIF District 1-11 and 1-12.
• Increased the number of press releases and saw an increased presence in a
number of publications.
• Coordinated three groundbreaking ceremonies that were taped for inclusion
on the economic development TV show.
IP
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•
The Product
• Leveraged capital (fast start-up, financially)
• Investment opportunity
• Land with infrastructure
• Labor pool/access
• Knowledgeable staff
• Financing options and incentives
• Fast track development approval process
• Immediate access to Public Works and Public Safety services
• Relationshipwith City
Y
• Long term partnership .
• Graded sites
• Upgraded regional infrastructure, including Highway 61/Wakota
Bridge
410
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• VI. Marketing Plan
Current Initiatives:
Direct Mail Campaign
Print Advertising
Golf Tournament
Special Meeting Events (target groups)
Annual Report
Press Releases
1999 EDA Marketing Plan (Appendix B)
Meetings with local realtors and bankers
Metro East Connections Event
Future Direction:
General Policy:
• Elected officials and staff must emphasize the need to work together in the
same direction in order to send a consistent positive message. The
Mission should be well known and understood.
As part of this, more effort needs to be placed on better coordination of
marketing programs on a citywide basis. There should be a common
message/theme in all City marketing endeavors, regardless of the
department/retail operation. Whole-city promotion programs should be
planned. This will be accomplished by working with the City marketing
committee. The City of Cottage Grove Marketing Plan is attached as
Appendix B.
The other top priority for the City is to continually work to ensure that we
can respond quickly to inquiries. This means educating staff to be able to
answer questions quickly, and making sure we have an inventory of
materials that are helpful to brokers (for example, maps and pricing
information.) As part of this effort, staff needs to focus on making sure
Cottage Grove is easy to "discover" on the Internet, so that when brokers
and others are doing searches, Cottage Grove always comes up on their
"list."
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•
Direct Mail:
The direct marketing campaign, featuring a series of post cards, has been
successful in generating interest and discussion about Cottage Grove.
The campaign should continue, with some new enhancements proposed:
• Continue the series of postcards developing "branding"—
associated with the use of EDA staff and the message/theme
that we provide a service with a touch of class. Start numbering
the postcards, "1st in a series of_"
• Create an alternative or additional theme, for use with Economic
Development marketing, housing development marketing, or a
joint effort.
• Consider a direct mail campaign directed at major retail chains.
Include survey data regarding the strong desire for a new
restaurant in Cottage Grove.
Print Advertising •
• The City should continue advertising in the Minnesota Real
Estate Journal and City Business. In addition, continue
advertising in the Chamber of Commerce Directory and map. A
new survey should be considered, sent to the existing mailing
list, to again determine which publications target groups read.
Research has indicated that the Internet is fast becoming the
number one tool for site selection, so staff needs to monitor this
development and consider possible changes to the advertising
plan as a result.
Golf Tournament
• Continue to increase the visibility and participation of sponsors.
Create various sponsorship levels. Add the ability for sponsors
to hold "contests" at various holes during the tournament.
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• Special Meeting Events (target groups)
• Continue to hold special meeting events for targeted groups. In
2001, these were held for local bankers, real estate agents and
Metro East members. For 2002, we should again host a
meeting for local business bankers. In addition, staff should
work with the State Real Estate Board to provide continuing
education credits for a special session with local realtors. Other
target groups should be considered for special meeting events.
Annual Report
• Continue preparation of the annual report for official publication
in February. When the current supply of pre-printed folders runs
out, consider updating the cover to include a more recent aerial
photo of the Industrial Park.
• Press Releases
• Continue to submit press releases on new projects and other
events in Cottage Grove.
• Develop a special insert for inclusion in the CG Reports newsletter.
(Internal marketing). This would be a two- or four-page insert that
would highlight all of the economic development activities that have
occurred over the past year or so. To educate our residents, that
they can become additional "marketers" of Cottage Grove.
Other
In addition to continuing and improving existing marketing efforts, there
are many more options the EDA and staff could develop and pursue.
Some of these ideas were generated during preparation of previous
documents such as the 2000-2005 Strategic Plan, work plans, 1999 EDA
Marketing Plan, and the 2000 Cottage Grove Marketing Plan. These
ideas are included below for review and the EDA should review and
prioritize these new options.
•
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Additional marketing ideas for consideration, as suggested during the
•
2000-2005 Strategic Planning process:
• Build a model of the industrial Park and include trees, streets,
infrastructure, amenities, and use as a sales tool.
• Continue to upgrade and improve maps of the park. Make sure maps
are readily available and show existing grades, infrastructure, etc.
• Conduct a focus group of existing business (or a limited survey) to help
determine what types of specialty retail and big box should go in.
• Ask the restaurant Association for research about the types of
restaurants that might be best suited to the Cottage Grove community.
• Conduct another marketing survey
Other ideas from previous Economic Development Work Plans:
• Meet with each manufacturing concern and major retailers at least
once during 2002 to work on opportunities and challenges.
• Support Chamber activities and remain responsive to its needs and
requests.
• Look for opportunities to develop other marketing events, such as an
event focusing on women business owners, or other non-golf events.
• Aggressively use cable, newspaper and CG Reports resources to
highlight Cottage Grove opportunities, programs, and successes. •
• Highlight Cottage Grove amenities and heavily promote—golf, parks,
Mississippi River.
Ideas suggested in the 1999 EDA Marketing Plan for consideration:
(The 1999 EDA Marketing Plan is included as Appendix B.)
• Actively work in conjunction with the Company Store to develop
promotional products. The goal of these projects is increased
awareness and name recognition for Cottage Grove.
• Develop a video that showcases the Industrial Park.
• Quarterly newsletter to city businesses.
• Develop an official media kit.
• Develop a tracking system for inquiries. It would be helpful to know if
advertising is effective, etc.
Ideas generated in the Cottage Grove citywide marketing plan:
• Banners with themes, sponsored by local businesses.
• Forums for local businesses.
• Contribute articles to the Chamber newsletter and professional
journals.
• Awards for referring a business to town.
411
• Wakota Bridge marketing effort.
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VII. Economic Development Plans
Industrial Park
Priority: A (Manufacturing)
B (Office; Warehouse)
Existing Condition: The City has approximately 2200 acres zoned
industrial and 792 acres within the Industrial Park. We are currently
developing a 256-acre property in the Industrial Park located west of
Jamaica Avenue between 95th and 100th Streets. This property has
access to Highway 61 from a diamond interchange within 2500 lineal feet
of the Park. This property is currently contained within an economic
development TIF district created in 2000 and due to expire in 2011. The
transportation infrastructure surrounding the park includes the 4-lane 95th
Street, 4-lane Jamaica Avenue, and 100th Street. 100th Street was recently
upgraded to 3-lanes up to Ideal Avenue, with 2-lanes the existing length of
the roadway. Plans are included in the City Capital Improvements
Program to upgrade the balance of the roadway to a 3-lane urban section
within the next 5-year period. The EDA has been the primary site
developer offering land development opportunities in 2001 at a square foot
price of$1.65 with all infrastructure and related fees included. Reduction
in that land price was available and granted based upon the TIF revenue
stream generated by individual projects. In 2001 three projects totaling
approximately 17 acres were developed. Infrastructure improvements in
the past three years providing benefit to this portion of the industrial area
total $3,357,657. Funding for those improvements is generated from
future tax increments, some assessments, and contributions from MSA
and MCES funds in addition to area funds from utility operations.
Additionally, the City had deferred assessments on industrial parcels held
by the fee owner prior to aggressive development of the Park. Total
deferrals surpassed $1 million. To date, this development has allowed for
recovery of over$600,000 of these assessment deferrals.
Cottage Grove is confident that there is a readily available, skilled labor
force. A 1996 Decision Resources Survey indicated that current residents
are commuting to a variety of work destinations:
St. Paul 31% Woodbury 6%
• Cottage Grove 16% Outside Metro Area 5%
Minneapolis 11% Rest of Metro Area 16%
Dakota County 11% No response 4%
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Future Direction: 11
We expect to continue land purchase at the current rate of$1/square foot
(of which $0.15 is redirected by the fee owner toward assessment
payoffs). Additionally, $0.60/square foot is necessary to cover past and
future infrastructure development with another$0.30/square foot for site
grading and related expenses. Additionally, $0.05 is taken as a
development fee for a 2002 land cost of$1.95. It is assumed that some
inflationary increases in this price will occur in future years. It is expected
that developments will continue to have the opportunity to redirect project
generated tax increments toward land costs.
The EDA has provided for rough grading of approximately 20 acres of
additional property in order to provide for rapid site delivery in 2002 or
beyond. Given our recent site development progress it should be
expected that development of between 10 and 20 acres within the project
area in any given year should be reasonably attainable. This provides a
build-out time frame of between 7 and 15 years within the 256-acre
primary development area. However, with current economic concerns
nationally, hesitation in new investments within the manufacturing sector is
expected. Hence, there is potential in the upcoming year for under-
performance as compared to past development experience. Alternatively, •
successfully completing one large project of the scale of the 1998-1999
Renewal by Andersen project will result in a year beyond current
projections.
Current tenants in the larger Industrial Park by type of user are:
3M Cottage Grove Center 10746 Innovation Road
1,600,000 Square foot Multi-use campus
1750 acre site 900 employees
Up North Plastics 9480 Jamaica Avenue
182,800 Square foot Manufacturing, distribution, office
88.277 acre site 280 employees
Renewal by Andersen 9900 Jamaica Avenue
227,000 Square foot Manufacturing, distribution, corporate offices
29.96 acre site 250 employees
American AgCo 7900 97th Street
80,000 Square foot Distribution, offices
5.97 acre site 60 employees •
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Advance Corporation 8000 97th Street
42,000 Square foot manufacturing, corporate offices
6.6 acre site 60 employees
TradeHome Shoe Stores 8300 97th Street
70,000 Square foot Distribution, corporate offices
4.59 acre site 40 employees
Cogentrix Energy 9525 105th Street Court
54,000 Square foot cogeneration plant
13.625 acre site 20 employees
CCE Technology 7555 95th Street
15,200 Square foot Manufacturing, corporate offices
2.468 acre site 20 employees
USPS Logistics Annex 7503 95th Street
11,360 Square foot Distribution, offices
2.206 acre site 35 employees
• Canadian Pacific Railway 9250 Ideal Avenue
22,396 Square foot Marshalling facility
210.424 acre site 12 outside contractors
Allied Trucking 9450 Ideal Avenue
21,676 Square foot Logistics, maintenance, offices
11.125 acres 6 employees
Cottage Grove is home to 3M Cottage Grove a Pilot Plant campus
containing over 1,609,503 square feet of development including
manufacturing, research and development, distribution, materials handling
and office facilities on a 1,750-acre campus.
The above generate varying degrees of impact upon the community. As a
result of these impacts the EDA should consider how to positively
leverage the opportunities presented by the presence of these uses and at
the same time respond to challenges in providing required services to
these business partners.
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Commercial/Retail •
Priority: A (Redevelopment; Retail-Restaurant)
B (Retail-Big Box)
C (Retail-Speciality)
Existing Condition: The City currently has three primary commercial hubs,
two of which are contained within the Gateway Redevelopment District.
Additionally, the City has smaller scattered site commercial developments
and is currently following a neighborhood commercial development pattern
following the 2000 Comprehensive Plan.
The oldest commercial area is the Cottage Square/G-Will Liquors
commercial area. Located at 80th Street, west of Highway 61, this
shopping area currently includes 142,000 square feet of commercial/office
space located in two shopping centers totaling 17.3 acres. Additionally
there is a small amount of tertiary space outside of the centers.
The Grove Plaza Shopping Center includes 170,000 square feet located
on 20 acres off 80th Street just east of Highway 61. Additionally, another
95,995 square feet of retail space and 98,679 square feet of office space
is near the Shopping Center along East Point Douglas Drive or 80th Street.
At Jamaica Avenue, east of Highway 61 is office and retail development
anchored by a 114,300 square foot Target (on 9.489 acres) and a 64,870
square foot Cub Foods (on 7.16 acres). Nearby development totals
382,609 square feet of retail, including a 161,140 square foot Menards,
and 30,389 square feet of office area.
Additionally, there is a small commercial area at the southern most portion
of the City off highway 61. Another, 28,850 square feet is under
development on 4 acres at 70th and Keats and areas at 70th/Hinton and
100th/Hadley and 70th/Keats are designated for future commercial
development. There also is some commercial development along West
Point Douglas between 80th and Jamaica, including a Par 3/Golf dome,
two additional 18 hole golf courses within the community and a publicly
owned Ice Arena. Finally, there are small commercial nodes within the
Langdon neighborhood off Jamaica and Highway 61 and in Old Cottage
Grove on Lamar Avenue south of 70th Street in the eastern portion of the
community.
The largest focus of the community at this time relative to commercial
development is marketing development opportunities within the Gateway
Redevelopment District. At present there are three redevelopment
projects facing the EDA and City Council. The first is redevelopment of •
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• the 5-acre Rose of Sharon Church site at 80th and East Point Douglas.
Under construction is a 14,490 square foot Walgreen's store at that site.
Pads are also being developed for an additional 10,000 square feet of
retail/service end users. Also approved by Council is the redevelopment
of the Grove Plaza Shopping Center with the addition of a 116,082 square
foot Home Depot and redevelopment of an additional 42,000 square feet
of the existing center with the addition of a fueling station at the Rainbow
foods store. Also in hand is a development agreement for a
redevelopment north of 80th Street at East Point Douglas to possibly
include a 86,584 square foot Department store user.
Future Direction:
The City is determined to complete significant
redevelopment/rehabilitation within the Gateway District prior to focusing
its attention upon other areas of the community for development of
additional commercial hubs. Development of small convenience
neighborhood stores or centers do not run counter to that so long as the
development maintains a neighborhood scale. As a result, we expect to
focus on completion of the projects currently under development within the
Gateway including provision of opportunities on the western portion of the
district.
Next are the opportunities within the Langdon neighborhood, opportunities
at Keats and Highway 61 and potential owner generated opportunities
associated with the 3M Cottage Grove campus. A focus within the next
five-year time frame will be to have a master plan for development
patterns within the first two opportunity areas concurrent with a new
Comprehensive Plan update expected within the 2003-2005 timeframe.
• Langdon, 77 acres, 46 significant parcels. County EMV of$4,693,600
(of which $2.5 million is the Public Works facility.)
• Keats and Highway 61: 119 acres, 6 significant parcels. County EMV
of $807,800 (of which $207,900 is VFW and $454,300 is Drive Inn.)
• Northeast Gateway, 103 acres, 58 significant parcels. County EMV of
$18,741,700 value (of which $6.8 million if Grove Plaza).
• Southwest Gateway, 165 acres, 79 significant parcels. County EMV of
$16,852,300 (of which $4.28 million is Armory, $1.68 is All Saints
church, $1.7 million is the G-Will Center and $1.88 is Cottage Square
mall.)
• Highway 61 and Jamaica, 94 acres, 39 significant parcels. County
EMV of$ 27,230,900 value (of which $ 5,149,000 is Target and $
3,105,800 is Cub Foods.) This EMV total does not include several new
• buildings and a few that are under construction.
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Housing
•
Priority: B (Single Family Over$350K, Single Family $250K-$350 K)
C (Senior Housing, Quality Townhomes)
Existing Condition:
According to the 2000 Census Cottage Grove is home to 30,582 people
with 10,024 housing units of which 9,932 were occupied at the time of the
census. Of occupied housing, 9,079 units were owner occupied with the
balance, 853 occupied by renters.
According to a market study sponsored by the Washington County
Housing and Redevelopment Authority the median household income in
2000 was $57,206. It is projected to increase by 2005 to $63,489.
Income is above median for those households headed by persons aged
35 to 64 in both 2000 and projected 2005 representing 66 - 67% of
households. In 2000 median income for persons aged 65 - 74 dropped to
$31,927 and further dropped for persons over 74 to $28,461. This same
trend is expected in 2005 with median incomes for those two age strata
projected at $34,463 and $31,887 respectively.
According to Metropolitan Council, data housing growth in Cottage Grove
has been fairly consistent since 1970 (perhaps before but the data was
not readily available). Between 1970 and 1999 7,245 housing units were
permitted in Cottage Grove (averaging 242 units per year over that period
of time). The average construction activity in the 1970's was 235 units per
year decreasing somewhat to 179 units per year in the 1980's (but
dropping significantly in 1982 and 1983 to a total of 123 combined for the
two years). This activity increased again to 308 units per year in the
1990's, dropping again slightly in the past couple of years. By far the
largest percentage of housing construction has been single family
detached.
Population is projected to continue on a growth trend. For 2005 the 1999
comprehensive plan projects a population of 35,785. This is expected to
increase to 38,870 in 2010 and again to 41,895 in 2015. Finally, by 2020
the Cottage Grove population is expected to be at 44,866 residents.
The Cottage Grove market place, which includes St. Paul Park, Newport
and Grey Cloud Township, is projected by the Washington County HRA to
have a population of 50,440 by 2010, up from 41,335 in 2000. Of those,
43 percent are expected to be between the ages of 35 and 64. Another
5.3 percent (up from 4.5 percent in 2000) are expected to be between 65
and 74 with another 2.4 percent over 75 (up from 1.8 percent in 2000). •
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According to the Metropolitan Council, Cottage Grove has a fairly high
level of housing affordability. For 1998, 71 percent of Cottage Grove
homesteads were adjudged to be affordable (with County estimated
market values less than $115,000 in that year). This compares to 65% of
housing stock in Oakdale, 50% in Stillwater, 34% in Woodbury, and 46%
Countywide. Countywide affordability measures elsewhere in the metro
area include 38% in Carver County, 45% in Scott County, 47% in Dakota
County, 57% in Hennepin County and 70% in Anoka County.
1999 County Assessed Values
Value # of Units Percentage
Under 100,000 2,618 30.35
100,000 - 149,999 4,965 57.37
150,000 - 199,999 817 9.44
200,000 — 299,999 254 2.94
300,000 —or more 56 6.47
ID Cottage Grove has had a long history of fairly compact development
patterns for new urbanized housing development that is concentrated
generally within the center of the community. Most recently, Cottage
Grove opened an area known as the West Draw for development in 1997
with an important sewer trunk main completed in 1999. The West Draw is
located generally north of 70th Street and west of Hinton Avenue. It
includes an estimated 865 acres of development property (not all will be
developed with housing, for instance the school district has purchased a
34.92 acre site within the West Draw, removing it from future housing
development potential). At present there are 470 units that have been
platted within the West Draw with an expected capacity of 1365 units
providing capacity for development at an average annual rate of 250 units
per year through the year 2004 perhaps. Additionally, it is expected that
117 acres of property at 95th and Hadley will be available for development
beginning in 2002 providing an additional 359 units or an additional 1.4
years of capacity.
In order to plan for a consistent development pace, additional property
should be made available for development by 2004.
S
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Future Direction: •,
Among the top goals of the EDA in the past strategic plan was attraction of
middle income and upper bracket housing. The City Council in 2001
reemphasized this goal and included gaining empty nester and senior
housing projects as well. In 1999 the City, in concert with the Metropolitan
Council, completed a fiscal impact study of land use prototypes. Within
that study it was projected that single family rural housing with market
values averaging $280,000, single family agricultural housing with values
of$160,00 and single family urban housing of$170,000 in value would be
the expected housing to be constructed within Cottage Grove within the
near term. Additionally, townhouse values were projected at $115,000 per
unit. Each of these housing value scenarios was determined to be
revenue positive for the City of Cottage Grove. The Metropolitan Council
later completed a broader metro area study within which it was determined
that on a per acre basis, townhouse and single family urban construction
had the greatest net revenue potential due to the low utilization of land as
compared to other housing types.
It therefore is determined that continued housing development within the
upper bracket market values be targeted. Additionally, in order to address
City Council's "empty nester" concerns, attached housing of various types
should be included within development scenarios. Finally, in accordance •
with City Council goals and the March 2001 HRA study, the EDA and City
should pursue Senior-housing opportunities as well. According to the
HRA study there is a demand for 160 market rate units, 70 shallow
subsidy units and 40 deep subsidy units in the Senior-housing category.
Institutional
Priority: Not specifically listed but significantly related to success in all the
listed priorities.
Existing Condition:
The City of Cottage Grove is home to the South Washington County
School District #833. Located within the community is the District Service
Center, a Program Center/ALC, the Transportation Facility, six
elementary schools, a Junior High School and Park Senior High School.
Additional District facilities are located to our north and west within the
cities of Woodbury, St. Paul Park, and Newport. Additionally, Cottage
Grove is home to 15 Churches, a County library, the South Washington
County Service Center/Armory, and various nonprofit facilities. Post
secondary education is located throughout the metropolitan area, many
within a short distance of Cottage Grove.
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Future Direction:
A high emphasis on attracting a facility for higher education has been
suggested by various individuals and groups within the community.
Expansion of the Minnesota State Colleges and University system with
additional campus facilities is not highly likely. However, the community
can work with various post-secondary institutions to attract satellite
facilities or employer specific customized training opportunities. The state
of Minnesota regularly assists colleges in providing customized training to
growth industries within the State. The EDA should consider additional
initiatives in working with DTED on training opportunities.
We also have the existing captive opportunities provided by SD833
particularly in vocational education. An emphasis over the next few years
should be to work with the School District in identifying goals mutual to our
two agencies and melding those with training deficits within the
commercial/industrial sector.
Transportation/Transit
• Priority: Not specifically listed but significantly related to success in all the
listed priorities.
Existing Condition:
The City of Cottage Grove, and the entire south Washington County,
southeast metro area is entering the construction stage for the $206
million Wakota Bridge/Highway 61 improvement project. This project will
be the single largest infrastructure enhancement in this area's history.
Additionally, however, the City and Washington County are working
together to complete a new County Road connecting Hinton Avenue in
Cottage Grove with Tower Drive in Woodbury. Further, several cities,
counties and rail authorities are working towards development of the Red
Rock Rail Corridor, the commuter rail line for the southeast metro
connecting Hastings, to our south, with St. Paul to our north with stations
in Hastings, Cottage Grove, Newport, and St. Paul. That line is proposed
to connect to a commuter or light rail line between St. Paul and
Minneapolis, connecting further to the Hiawatha Light Rail line currently
under construction and the North Star commuter rail line currently under
design.
•
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•
Future Direction:
While the transportation future looks bright we dare not rest on our laurels.
The EDA and City Council needs to continue to monitor the funding
schedule for the Wakota Bridge project scheduled for completion in 2007.
The EDA also needs to push for completion of the Hinton/Tower
connection, as a portion of the funding to be supplied by the City of
Woodbury, is currently not secure. Further, Cottage Grove is fortunate in
being identified as the second commuter rail line priority for the State of
Minnesota. However, we need to ensure that this priority level is
maintained. Further, we need to be cognizant of the rail needs as we plan
for a new transit station within the community. Finally, we need as a
transit priority to push for Express bus service to Minneapolis and we need
to revisit the transit needs of the industrial community and how station
location choices may impact future circulator routes.
Most of the transportation infrastructure within commercial/industrial areas
is relatively new. There are currently needs identified for expansion,
however, such as the upgrade of 100th Street from Ideal to Hadley. There
may also be a need to study access issues at Jamaica and Highway 61, •
as part of any future redevelopment of the Langdon neighborhood.
Finally, access to the 3M campus from Highway 61 could be improved by
a grade separated crossing of Innovation Road over the Canadian Pacific
Railway line. An opportunity for such a crossing would b expected to be
beyond the time horizons of this plan..
The City will be completing its final phase of the 1994 pavement
management program by 2004. By 2003 it is expected the City will be
initiating planning on the next pavement management program. The EDA
should be aware of that planning effort as it relates to commercial
infrastructure as well as tax burdens placed upon the business community
by potential funding scenarios of the pavement program.
Non-transportation Infrastructure
Priority: Not specifically listed but significantly related to success in all the
listed priorities.
•
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Existing Condition:
The City has several plans in place under which decision-making is to
occur. They are:
1992 Sanitary Sewer Plan
1994 Water Supply and Distribution Plan
1996 SWWD Watershed Management Plan and 1997 draft Storm
Sewer Plan
1994 and 1997 Pavement Management Plan with 1998 update
1998 Natural Resources Inventory
2000 Comprehensive Plan
In addition the City has localized planning documents such as the AUAR
for the West Draw neighborhood development, or various feasibility study
documents.
We currently have very little understanding of telecommunications,
electrical or gas distribution planing efforts by AT&T/Media One or Xcel
Energy. Further, the Metropolitan Council Environmental Services
provides for planning of wastewater treatment and interceptor
development to which the City's trunk system connects.
•
Future Direction:
Certainly, an increased effort needs to be made to fully understand and
leverage infrastructure provided by others. In working with commercial
and industrial clients we could improve our information delivery if we held
current information. Further, we need to work with these partner
organizations to improve access to and reliability of that infrastructure.
Regarding Municipal infrastructure updating of several of our planning
documents needs to occur. It has been our expectation that the
Comprehensive Plan will be updated as a 2020 plan by the end of 2003.
As part of that effort the sanitary sewer, water, and storm water plans also
require updating. Participation in these efforts by the EDA should occur in
order to facilitate infrastructure enhancements for the commercial and
industrial areas of the community.
•
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Recreational/Tourist
Priority: Not specifically listed but related to success in all the listed
priorities.
Existing Condition:
The City of Cottage Grove is home to several park and nature resources.
Included is the 506-acre Ravine Regional Park, the 240-acre DNR
Scientific and Natural Resources area and 29 parks totaling 717.1 acres.
Additionally, we are bounded on the southwest by the Mississippi River
and just a few miles to our east is the St. Croix River.
Future Direction:
The EDA needn't attempt to replicate or duplicate park or recreational
resources or programming provided by the Recreation/Arena, or Parks
Maintenance divisions of Public Works or the River Oaks Golf Course and
banquet facility owned and operated by the City. However, there is
perhaps a role the EDA should fill should there be a desire to conduct
such as:
• Attempt leveraging of existing private, nonprofit and public sector
recreational opportunities along Highway 61 between 494 and 1111
southeastern Minnesota including the Casino in Red Wing, various
Bed and Breakfast venues in Minnesota and Wisconsin in the corridor,
a burgeoning antique retail trade, historical sites, golfing, lodging,
skiing and various activities along the Mississippi and St. Croix rivers.
• Work with community groups, the Park and Recreation Commission
and others toward a public/private partnership on athletic and/or
community centers or uses.
• Target economic growth within the community as a result of decision-
making related to future land uses in the Mississippi River corridor.
• Develop an improved sense of place related to commercial or industrial
developments by integrating these developments with enhanced green
spaces, community spaces, streetscaping, and other pedestrian
friendly improvements.
• Recognize and promote "green" amenities rarely found inside or in
close proximity to the 494/694 beltway such as permanent agricultural
areas and development of future green corridors.
• Inclusion in promotional materials amenities that may not be within
Cottage Grove but that are readily accessible to the community such
as the Xcel Energy Center, Regional parks or other recreational
venues.
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•
•
VIII. Conclusions
IX. Appendices
A. 2000-2001 Strategic Plan
B. 1999 EDA Marketing Plan
C. 2000 Council Goals
D. Almar Village Site Plan
E. Pine Grove (5th Street Ventures?) Site Plan
F. Country Inn and Suites Site Plan
G. West Draw map
H. Industrial Park Grading Plan
I. North Gateway Map
J. Walgreen's Site Plan
K. Grove Plaza Site Plan
F:\GROUPS\PER_ECON\Economic Development\Strategic Plan\2002\Draft2.doc
•
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