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HomeMy WebLinkAbout2002.02.12 PACKET CITY OF COTTAGE GROVE • ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA TUESDAY, FEBRUARY 12, 2002 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of January 8, January 15, and February 6, 2002 Minutes 4. Business Items • A. Project Updates B. Election of Officers/Review of Terms C. Amending Gateway Redevelopment Boundaries D. EDA Strategic Plan E. Discussion of Future Development Opportunities (i.e. Keats/61) F. 2002 Events: Business Breakfast, Metro East Annual Meeting, Golf Tournament, Manufacturer's Week, Renewal Tour and Meeting, Advance Corporation Open House G. Metro East Broadcast H. Calendar I. Satellite Education Center 5. Miscellaneous Business Items 6. Adjourn iNext Meeting Date: March 12, 2002 J:\Economic Development\EDA Packets\2002\Agendas\February 12 Regular.doc City of Cottage Grove • Memo To: Economic Development AuthorityMembers p From: Michelle Wolfe, Assistant City Administrator '" Date: 02/08/02 Re: Project Updates Item 4A Attached is the list of active projects. The City received 2 new leads in January. Staff will provide a verbal update at the meeting. Attachment • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Proj Update.doc ACTIVE LEADS QUERY EDA PACKET 2/8/02 'Proposal ID " -Project Description I . SF/Acres Needed ED-00-22 Office Warehouse 45,000- 50,000 sf warehouse, 4,000- 5,000 office . ED-00-31 Grove Plaza NA ED-00-32 Hotel & Restaurant 70,000-80,000 sf ED-00-61 Retail/Mixed Use ED-00-64 Manufacturing/Distribution 8-10 acres ED-00-74 Manufacturing 50,000 sf ED-00-83 Manufacturer 40,000-60,000 sf/5 acres ED-00-84 Multi-Tenant Spec. Building ED-01-001 90,000 SF Retail 90,000 ED-01-002 Manufacturing ED-01-005 'Manufacturing ED-01-006 Re- Development ED-01-010 Restaurant#2 ED-01-012 Restaurant#4 ED-01-016 Manufacturer 10,000 SF ED-01-018 Commercial ED-01-021 Remodel ED-01-024 Commercial 6.5 acres ED-01-026 Manufacturing - Medical 35,000 Sq. Ft. ED-01-030 Distribution 25-30 acres ED-01-032 Distribution 400,000 SF distribution center ED-01-033 Industrial ED-01-034 Distribution Center 9 acres ED-01-035 Project Future 60- 100 acres ED-01-036 Retail Store 2,000- 3,000 SF ED-01-037 Multi-tenant Industrial 80,000- 100,000 SF ED-01-038 Commercial 40,000- 50,000 SF ED-02-001 Manufacturing 80,000 SF • Page 1 City of Cottage Grove S Memo To: Economic Development Authority Members III/ I From: Michelle A. Wolfe, Assistant City Administrator ► Date: 02/08/02 Re: Election of EDA Officers Item 4B BACKGROUND Per the by-laws, there needs to be an annual election of EDA Officers. The positions are as follows: President, Vice-President, Secretary, Treasurer, Assistant Treasurer, and Executive Director. The Authority by also designates a Deputy Executive Director who shall perform the duties of the Executive Director in the • absence or incapacity of the Executive Director. The Secretary and Assistant Treasurer need not be members of the Board. The President, Treasurer and Secretary shall be elected annually. Terms for those appointed Assistant Treasurer and Executive Director (and Deputy) could be on going until changes are necessary or recommended. While both the EDA and City Council have not officially approved the revised bylaws, the EDA needs to have officers in order to officially conduct business. Therefore it is recommended that the EDA appoint officers in accordance with the existing bylaws. Attached is a copy of the approved minutes from the February 2001 regular meeting. It outlines the results of last year's elections. ACTION Elect the positions of President, Vice-President, Secretary, Treasurer and Assistant Treasurer. Also attached for your information is the current EDA roster and terms. Attachments • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Officers.doc Economic Development Authority _ Council Liaison: Jim Wolcott (651) 459-2207 • Staff Liaison: Michelle Wolfe (651) 458-2882 Meeting Held: 2nd Tuesday at 7:30 a.m. Name & Address Telephone Number Commission Term Dates Chair Sandy Shiely H: (651) 459-1355 8251 - 115th Street S W: (651) 768-3677 1/1/01 - 12/31/04 Cottage Grove, MN 55016 ssnieiy@yanoo.com Commission Member Glen Kleven H: (651) 458-0814 1/1/00 - 12/31/05 8619 Jenner Lane S W: (651) 297-2146 1/5/94 - 12/31/99 Cottage Grove, MN 55016 2/21/89 - 12/31/93 Commission Member Fred Luden 3M Cottage Grove Center H: Building 116 W: (651) 458-2001 10/28/97 - 12/31/02 10746 Innovation Rd Cottage Grove, MN 55016 • Commission Member Dick Pederson H: (651) 459-6397 10/21/98 - 12/31/02 8027 Hynes Ave S W: Cottage Grove, MN 55016 Commission Member Gerard Weingartner H: 1/8/97 - 12/31/02 7501 - 80th Street S W: (651) 459-2300 3/1/93 - 12/31/96 Cottage Grove, MN 55016 Commission Member Michael Wennen H: (651) 769-2605 11/21/01 - 12/31/03 9189 Jergen Ave S W: (651) 459-8339 ex. 226 Cottage Grove, MN 55016 Commission Member Jim Wolcott H: (651) 480-7997 1/3/98 - 12/31/00 11247 Kingsborough Tr W: (651) 459-2207 9/9/97 - 12/31/97 jim.wolcott.b4zl@statefarm.com Cottage Grove, MN 55016 Updated Nov-01 • • CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MINUTES February 13, 2001 Pursuant to due call and notice thereof, a regular meeting of the Economic Development Authority was held at City Hall, 7516 80th Street South, Cottage Grove, Minnesota on the 13th day of February, 2001. CALL TO ORDER Mayor Sandy Shiely called the meeting to order at 7:30 AM. ROLL CALL • Members Present: Glen Kleven, Dick Pederson, Sandy Shiely, Gerard Weingartner, Jim Wolcott, and Fred Luden Members Absent: None Others Present: Ryan Schroeder, City Administrator Michelle Wolfe, Assistant City Administrator Scott Johnson, Management Intern APPROVAL OF MINUTES Wolcott moved to approve the January 9, 2001 Economic Development Authority Minutes. The motion was seconded and the motion carried unanimously. Project updates The City of Cottage Grove is close to finalizing a development agreement with Tradehome shoes. There will be an attorney conference call to discuss the final details. There should be a closing by mid-April. Also, the school district closes on their land acquisition in April. Cushman Wakefield —They have decided to stay in Wisconsin. Post Office —effectively done Nothing new on Metro-East projects • Walgreens—There is uncertainty on the status of this project. Economic Development Authority- Minutes February 13, 2001 • Page 2 Office Max—They are downsizing by 1,000 sq. Ft. and the project is still going well. Tushie/Montgomery — This may be a venture capital deal with some concern regarding loading docks. #83 Navy Island Plywood — A family owned cabinet business. They are currently looking at lot locations. #84 Benson-Orth — They are looking for an anchor tenant or two, but there has been little response. Staff is looking into direct-mail efforts. Large Retail Store — Redevelopment discussion, but there are no current sites available. They are currently looking for 90,000 sq. ft. (9 acres). Possible redevelopment; but the City needs to look into finding a developer and relocate existing businesses. #01-002—An Eden Prairie business is looking to build and expand in the future. #01-003 -#01-004 —These are new inquiries Parks and Planning 70th and Keats — SA station, retail and 12 Townhome sites. Approximately 35 families are against this development because of the aesthetic issue of losing trees. This land needs to be re-zoned. CIP Draft There is currently more MSA funding than expected. The project on 80th Street is currently paid. It was proposed that the 100' Street project be moved up, and the group feels the problem at 80th and Jamaica needs to be taken care of first. Also, the construction of a Water treatment plant for 2006 was discussed. The first couple of years of the projects are a work plan. The city needs a positive cash flow established in certain areas before new projects can be approached. Election of Officers President Nomination — Mayor Sandy Shiely nominated Jim Wolcott, the motion was seconded, and the motion carried. Vice President Nomination—Jim Wolcott nominated Mayor Sandy Shiely. The motion was seconded and the motion carried. Secretary/Treasurer—Gerard Weingartner was nominated. The motion was seconded and the motion carried. • Economic Development Authority- Minutes 11 February 13, 2001 Page 3 Executive Director— EDA appointed the City Administrator Deputy Executive Director— EDA appointed the Assistant City Administrator Assistant Treasurer- EDA appointed the City Finance Director 2001 Business Breakfast The board wants to recognize individual businesses more. They want to recognize new businesses and recognize businesses who have been a part of Cottage Grove for 10,15,20 years (etc.). We need the city to recognize the businesses in the community. EDA and Staff vacancies The EDA decided they need more time to replace their vacant seat. A list of possible candidates will be compiled. The idea of a probationary period for the new member was discussed. Redevelopment Mayor Sandy Shiely told the EDA board that she strongly supports redevelopment and called for an all out effort to accomplish this task. iA project plan needs to be discussed. Developers, including Kraus and Ryan, were discussed as possible options. A discussion also continued on the possibility of commuter rail and where the station will be located. The example of Stillwater was used to explain the type of development preferred around the new commuter train station. However, the EDA wants to stay away from fragmented development as much as possible. Home Depot wants to move into the vacant space at the Grove Plaza next to EBL&S. Home Depot would increase the land value to nearly $56.00 sq. ft. This would create more revenue for other projects in Cottage Grove. The Burger King building still has not been addressed. The board made it clear, that the citizens and Council must know that we are not subsidizing Home Depot. The Home Depot is taking care of a blight, which exists at the Grove Plaza. The citizens need to understand the re-development process before we proceed. We need to start thinking outside the box. Also, the city when looking at re-development should also look into combinations of retail and housing (senior citizens). For redevelopment purposes the City has decided to pursue redeveloping the two gateways of Cottage Grove first. The second option would be the Langdon area and redevelopment of Keats would be the last option. Community Center The example of Brooklyn Park's Community Center was used to look at the possibility of an armory/community center. Also, the idea of lawful gambling was brought up as a possible option. The examples of hockey associations with Economic Development Authority - Minutes February 13, 2001 • Page 4 charitable gambling licenses and pull-tab emporiums were brought up as possible ways to pay for a Community Center. Calendar Business Day at the Capitol — March 14, 2001 Labor Force— EDA does not support Cottage Grove's involvement Mississippi Dunes Meeting — February 21, 2001 — Mayor will discuss the goals of the City Industrial Park Tree Planting - Spring Golf Tournament—Will be on the 3rd Tuesday of August ADJOURN Motion Carried Respectfully submitted, Scott J hnson ✓ Economic Development Secretary • City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle A. Wolfe, Assistant City Administrator 4,61d, Date: 02/08/02 Re: Amendment of Gateway Redevelopment Boundaries Item 4C Included in your packet are maps from the TIF plan for District 1-12 for the area commonly known as the Gateway Redevelopment District. The EDA needs to discuss the possibility of amending the boundaries of the district, to exclude some properties that were previously included in the district. • Attachments • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2001\Feb 02 Gateway.doc F CITY OF COTTAGE GROVE WASHINGTON COUNTY, MN 0 DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING DIST. NO. 1-12 1 v 1 - iiiii, tis _ SEE ATTACHMENT f FOR DETAILS _ j, ,� . I al ,- kii fit2 Rillips gip ,,,,,;?,, 4,,, W41 1111 I 4 i, m,„ ,:=- ,N. ...94..0. 7 ' 111 ��' ��>tirJd : ={ O4 N irdri=01 74.14,111111alii: It 1/ 6) 0 1 2 Miles Tax Increment Financing District No. 1-12 I City Boundary EDDevelopment District No. 1 Boundary -_ Mississippi River G,-....--pCR1d*..ofttYY 1 00 112410011 12 CITY OF COTTAGE GROVE WASHINGTON, MN • DEVELOPMENT DISTRICT INO. 1 TAX INCREMENT FINANCING DISTRICT NO. 1-12 0 c a) a��o - 4A& 80th Street % -.T.-(I l/ S ` ._ • -.:.:_::::-. L -.11 =-..--. :--- ..,-..-.,-",-.,„:-„\* t),•,4 \ =---:-.:,---;, '- --- ,-i-. .--- • -,,- 1--_,.-= > toy "� \•I .eilk.„1. ‹,.,,,„. .. . , „ ..... ... .... , . ., * • . , .. ,.. ,„ , . , ,i,,,,„,- ‘‘ ,,,, , , , i�/� I ., ,...., -- -, , ---- ,- ‘,, - ,7, a . ., .,. . , • • , _ ‘ . \ .7.1 // , • N a u /b. W —+ �`,. -fr--/7------ / S 100. n.K..naal 12 W+2fl. 76m 6� 0 600 1200 Feet 1 • Tax Increment Financing District No. 1-12(A) '..-.\:l'';.,'-:.' Tax Increment Financing District No. 1-12(B) City of Cottage Grove Memo To: EDA Members /i / From: Michelle A. Wolfe, Assistant City Administrator ' 4/ Date: 02/08/02 Re: Strategic Plan Included in your packet is the most recent draft of the EDA Strategic Plan. At the special meeting on February 6, the EDA made some additional changes to the plan. Staff has attempted to incorporate those changes into this draft (dated 2/7/02). Several sections of the plan were moved to become appendices, and are included with this draft. However, at this time the other Appendices (for • example, existing documents such as the 2000 Strategic Plan and the 1999 Marketing Plan) have not been included. Once the EDA is comfortable with the main body of the plan, the entire document with appendices can be produced in final format. ACTION REQUESTED Approve the EDA Strategic Plan 2002-2005 Update and direct staff to compile the final document for presentation to the City Council. Attachment • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Strategic Plan.doc Revised 2/7/02 • • EDA STRATEGIC PLAN DT?4F?I 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. • DRAFT • 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. III. 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 Page 2 IV. Objectives DRAFT. 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 (listed in no order or priority): 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 EDA 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 EDA 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 any brownfield sites within the community. The EDA estimates that 99% of development opportunities are in greenfield areas, but to be responsible, want to address any brownfield sites that may exist. 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 EDA master plan for the Keats/Highway 61 intersection. 15. Develop EDA master plan for industrial areas identified within the Comprehensive Plan. 16. Update Marketing 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). • Page 3 DRAFT • 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. 3. Secure at least two new restaurants (sit-down, eat-in) by the 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. Page 4 DRAFT • 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, 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. Council reviewed a plan for an 86,584 square foot department store on 80th Street, which does not appear to be going forward at this time. 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. • Page 5 i DRAFT V. The Product General Development • Labor pool/access • Knowledgeable staff • Fast track development approval process • Immediate access to Public Works and Public Safety services • Long term partnership • Upgraded regional infrastructure, including Highway 61/Wakota Bridge Cottage Grove Industrial Park 4110 • Leveraged capital (fast start-up, financially) • Investment opportunity • Land with infrastructure • Financing options and incentives • Graded sites S Page 6 r ORilpri VI. Appendices While preparing this update, the EDA and staff created several new reports and reviewed a number of existing reports, plans, and related documents. Those that are considered sgignificant to the Strategiv Plan are included as appendices, as listed below. A. 2000-2001 Strategic Plan B. City of Cottage Grove Marketing Plan C. 2000 Council Goals D. Current Status: Chronology of Events, Accomplishments, and Marketing E. 1999 EDA Marketing Plan F. Economic Development Plans: Priority, Existing Condition, and Future Direction G. Almar Village Site Plan H. Pine Grove (5th Street Ventures?) Site Plan I. Country Inn and Suites Site Plan • J. West Draw map K. Industrial Park Grading Plan L. North Gateway Map M. Walgreen's Site Plan N. Grove Plaza Site Plan \\CG_FS2\CG_FS2_MAIN\GROUPS\PER_ECON\Economic Development\Strategic Plan\2002\Draft2.doc • Page 7 • APPENDIX D: 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 • Page 8 Appendix D (Continued) Page D-2 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 • Page 9 • Appendix D (Continued) Page D-3 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 development agreement for Kohl's Department store; project not able to proceed due to property acquisition barriers. • 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 Page 10 Appendix D (Continued) Page D-4 S 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 proposed 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. Page 11 Appendix D (Continued) Page D-5 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 WEB Page 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. Efforts should be made to improve internal marketing and information sharing with City employees, commission members, and other City volunteers. 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." • Page 12 Appendix D (Continued) Page D-6 • 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. • Include the post cards on the City Economic Development WEB Page. • 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. • Page 13 Appendix D (Continued) Page D-7 • WEB Page • The EDA has a page on the City's WEB site that includes a great deal of information about the City, devleopment opportunties, transportation, zoning, taxes, incentives, and links to the Minnesota Department of Economic Development and other important organizations. Staff needs to continually update and improve the site, adding pictures (buildings under construction), press releases, maps, and other enhancements. 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. Improve this effort by increasing the number of press releases and especially focusing on all the positive devleoments that are occuring 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. . • Put press releases on the WEB page. Page 14 Appendix D (Continued) Page D-8 • 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. Once the strategic plan is updated, the EDA should begin working on updating the 1999 EDA Marketing Plan. 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. • Page 15 Appendix D (Continued) Page D-9 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. S • Forums for local businesses. • Contribute articles to the Chamber newsletter and professional journals. • Awards for referring a business to town. • Wakota Bridge marketing effort. • Page 16 APPENDIX F: Economic Development Plans: • Priority, Existing Condition, & Future Direction • 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 • I 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% • Page 17 . APPENDIX F (continued) Page F-2 Future Direction: 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 fiaexpected. 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 1,609,503 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 • Page 18 APPENDIX F (continued) Page F-3 • American AgCo 7900 97th Street 80,000 Square foot Distribution, offices 5.97 acre site 60 employees 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 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. • Page 19 • APPENDIX F (continued) Page F-4 • 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. Page 20 APPENDIX F (continued) Page F-5 • The largest focus of the communityat this time relative to commercial 9 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 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). Page 21 APPENDIX F (continued) Page F-6 • • 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. 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. • Page 22 APPENDIX F (continued) Page F-74111/ 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). 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 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 1111 platted within the West Draw with an expected capacity of 1365 units Page 23 • APPENDIX F (continued) Page F-8 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. 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. • Page 24 APPENDIX F (continued) Page F-9 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. 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. • Page 25 • APPENDIX F (continued) Page F-10 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, to Minneapolis with stations in Hastings, Cottage Grove, Newport, and St. Paul. That line is proposed to • connect to the North Star commuter rail line currently under design. 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, Page 26 r APPENDIX F (continued) Page F-11 • 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. As stated in the Comprehensive Plan, the EDA generally supports the suggestion of a regional river crossing without defining an exactlocation. It is the understanding of the EDA that the river crossing is an important partof the regional system and its constrctuion would have an impact on the land use designations connected to it. 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. 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. • Page 27 APPENDIX F (continued) Page F-12 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. 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: Page 28 APPENDIX F (continued) Page F-13 • • Attempt leveraging of existing private, nonprofit and public sector recreational opportunities along Highway 61 between 494 and 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. • Page 29 City of Cottage Grove Memo To: EDA Members From: Michelle A. Wolfe, Assistant City Administrator (/,j Date: 02/08/02 Re: Future Development Plans: Discussion Item 4E As mentioned at the February 6 meeting, staff would like to discuss future development areas and receive input from the EDA. Attached is a map that shows one potential concept for the area around Keats and Highway 61. Additional information will be presented at the meeting. • Attachment • \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Keats-61.doc . • ii:1,,i L- �; _L I , ...!is..._tI! 9B v,.,„ _ ..s. ---_ - �•; . _ ,fie ar __. �.? - > , ; . i 1 ,„ _ . ,... ...,, _0: ,. 1...t. „.............., i____, i t ...,.„ .. ....,. ,. , ” • ..,..: . ________ _,t49 _,;i1_ 41,,, ii,...,,-„:„,, ..,_., „,.. 2_1„447/, A 1/ N., ' �'/ / 2a +/ i , /// • ° ' G/�/ ' r / .1 mIliti,r,r1.-_-_-"--,i'..e 7i ' j* C `---- of I '11 f ,, ' / / ' 1 � /rte � ,r � � _ /r �� i s / / d �li � . li / • -1k ///'lm ` 4!- /_ -•'--: � _ • $/,_.-., , �. p ________,ii,i ,,,, _-___.--5,-_...,_ /'1 ; ;iii 11, LAIllip.-ja-_ir L -,-,- : ,-._- / ,iir , 1 N-- I1ii ! • -i' r'7/" / d ./, • City of Cottage Grove Memo To: EDA Members - // / From: Michelle A. Wolfe, Assistant City Administrator Date: 02/08/02 Re: 2002 Events Item 4F Business Breakfast Attached is a memorandum from Scott Johnson summarizing this event. The presentations are currently being shown on government access channel 16. As always, staff would appreciate input regarding the event. 411 Metro East Development Partnership Annual Meeting The annual meeting was held on February 7. City Administrator Schroeder attended and can comment on the event. Golf Tournament Attached is a draft of the "Save the Date" post card that will be mailed out this week. Scott Johnson is working on ordering logo golf balls for distribution at the event. Manufacturer's Week As discussed at the last EDA meeting, staff will be working on some kind of lunch event to commemorate this week in March. Renewal by Andersen Tour Several EDA members and staff attended this event on February 6. Advance Corporation Open House The open house, held on January 10, featured presentations by Jim Wolcott and Sandy Shiely as well as a formal ribbon cutting with Advance President Glen Lorenz. Portions of the ceremony are currently featured on the Community/Economic Development TV Show currently airing on channel 16. The City was pleased to present hats with the company name and "City of Cottage Grove" prominently displayed. All employees of the company received a hat. • Attachments \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Events.doc f _ . City of Cottage Grove • Memo To: EDA Members From: Scott Johnson, Management Analyst ,..„efr' Date: 1/29/02 Re: Business Breakfast 3M The 2002 Business Breakfast was held at 3M on Monday, January 28th. The Business Breakfast was well attended by local business leaders and representatives. 85 people RSVP'd for this year's event. According to the sign- in sheet 68 people attended (this number does not include 3M employees). Eleven Cottage Grove staff members attended the breakfast. Representatives from Newport, St. Paul Park and Cottage Grove spoke about • the state of their Cities. The keynote speaker for this event was Marc Hugunin from the Metropolitan Council. Staff was able to distribute 90 marketing material packets to the audience. Ryan Schroeder asked the Business leaders for comments on the marketing materials. • Document2 O O5 O 0 c � Cd 1"i :,z ?i f) -, ^ QOM+... Cmd z WU ^ O a N O y� 10 73 cv .4 F. O ^ O N C b.+ 'QCf— O O ,� O O Q �. J .� 'C E = Q O ¢ -—4 .O E .O I) 4, x cz 5 •� c s -2 4U t x ct 5 o 1 4' � a 0 4-) o 0 z -6 = ' 015 cc = Im. °1 Et 0 75 U ¢ ' O 75 ''_42 '0 � O ) (U..) 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S Attachments S \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2001\FEb 02 MEDP.doc . . . j ( eros rc. ad cas . _ _ • Please plan on attending the Metro East Development Former MEDP executive committee member Frank Partnership's 15th Annual Meeting. This year's event Sherwood has joined Mark Evenson in forming a new will be held on Thursday, February 7 at the Town and Twin Cities office of The Staubach Company. Lakeville Country Club in Saint Paul. The evening starts with a has hired Dave Olson as its community development director. social hour from 5 to 6 p.m., followed by the business Kevin Carroll joins Farmington as its new community meeting from 6 to 7 p.m. After five consecutive years of development director. Bob Long has joined Welsh blizzard-like conditions, we are attempting to confuse and Companies and will work in the East Metro market. Former befuddle the weather gods by holding the meeting one Saint Paul PED director Brian Sweeny has formed The week earlier than usual. Sweeney Group and is pursuing new development projects. Kathryn Hahne, an attorney with Leonard, Street and McGough Companies are working to acquire 19 acres of Deinard will be the keynote speaker at this year's event. land in Eagan to develop up to 400,000 square feet of As an attorney, she practices in the areas of government corporate headquarters office space. The site is located in the relations, real estate and public law. She represents southeast quadrant of Interstates 35E and 494 near Highway developers and public agencies on tax increment and other 55. Mark Fable and Greg Miller are coordinating the project. types of development projects. Ms. Hahne will be addressing the issue of TIF use in Minnesota and the effects of changes in TIF law. MEDP would like to thank all who were able to attend the Grand Opening of the Chamber of Commerce Center. We are currently seeking sponsors for the 15`h Annual The December event drew an estimated 700 people. Meeting. Sponsorships are available for$500, and include signage, a listing in the program, and recognition at the event. For additional information, or to enlist as a sponsor, MEDP's east metro Labor Analysis will be featured at a please contact Lena Jacobson at(651)265-2763. Statewide Conference held in Saint Cloud on Januar 2002. David Piggott will be presenting the study results a group of economic developers and officials from across MEDP has named its 2002 Officers and Executive Minnesota. For more information, contact David at (651) Committee. 2002 Co-Chairs are Mayor Kathleen Gaylord 265-2760. of South Saint Paul and Mark Beattie of 3M. Incoming Vice-Chairs are Ramsey County Commissioner Victoria David Piggott was recently elected to the board of Reinhardt and Marji Ranes of the Saint Paul Pioneer Press. directors of the Mid-American Economic Development Past Chairs will be Mayor Susan Banovetz of Vadnais Council. He was also appointed Chairman of the economic Heights and Ken Stabler from Xcel Energy. Paul Rebholz Development Association of Minnesota's communications of Wells Fargo will serve as Treasurer. David Piggott of committee. MEDP serves as Secretary. Other Executive Committee members are Mayor Elizabeth Kautz of Burnsville, Brad Wood of McGough, Jeff Redmon from Redmon Law,Ryan Schroeder from the City of Cottage Grove, Gene Cross of US Bank, Mayor Yale Norwick of Mahtomedi, Steve Lehr of CB Richard Ellis, and Tim McShane of Ryan The Metro East Broadcast is a monthly communication from the Metro Companies. East Development Partnership. We would like to share your news with other members of the Partnership. Please send your press releases to: A new NAIOP report indicates that vacancies in the Saint Paul Suburban market rose from 10.5% to 12.3% in the MEDP past year. In the Saint Paul CBD, vacancies rose from — 401 North Robert Street, Suite 150 10.1% to 14.8 %. Quoted net rents in the CBD are $13.93 Saint Paul,MN 55101 for Class A, $10.08 for Class B, and $8.23 for Class C (651)224-3278 fax(651)223-5484 space. In the suburbs, quoted net rates are $14.29 for Classrillialla wwW.medp.Org A, $11.61 for Class B and$9.83 for Class C. • Volume III, Issue I, January 02 I'I3 eMetrot as roa ea „, I 'e 15th Annual Meeting of the Metro East Development A proposal has been put forward for an 800-acre artnership is being held this Thursday, February 7th at the development in Eagan and Inver Grove Heights. The plan Town and Country Club in Saint Paul. The evening starts includes 500,000 square feet of commercial space, 2,000 with a social hour from 5 to 6 p.m., followed by the residential units, a golf course and a hotel. The proposed site business meeting from 6 to 7 p.m. The keynote speaker —500 acres in Eagan and 300 acres in Inver Grove Heights— will be Kathryn Hahne, who recently joined the firm of is currently undeveloped land under several ownerships. Faegre and Benson. Ms. Hahne is an expert attorney I-494 and Lone Oak Road border the site on the north and specializing in the areas of government relations,real estate south. and public law. She will be addressing the issue of TIF reform and the impact it has had on economic development The Dakota County CDA has acquired land in West Saint in Minnesota. If you have not yet registered for this event, Paul between the Hurley and Annapolis block of South please contact Lena Jacobson at 651-265-2763. There is no Robert Street. They plan to build 50 units of senior housing charge to attend. and 6,000 square feet of retail commercial space. Total project cost is estimated to be approximately$1.3 million. A recent random survey of Lakeville residents shows that 78%have no plans to move or would stay in Lakeville for The Metro East Development Partnership is partnering with at least 10 more years. More than half(52%)rated their the Minnesota Real Estate Journal to put on a Development neighborhoods as excellent,compared to 7%who rated Opportunities and Site Selection Conference. The their neighborhood as poor. The study also showed that conference will take place on Wednesday, April 24 at a site Lakeville had a median household income$16,500 higher yet to be determined. The event will focus on available than the metro average. properties and sites located in the East Metro and will cover real estate issues effecting all site selection. An insert in the We are nearing the completion of the information Minnesota Real Estate Journal will be produced in technology study currently being conducted. The purpose conjunction with this event. We are currently seeking the study is twofold. First, we are trying to determine sponsors for the event. Similar events in the past have We viability of an organization that would provide valued attracted up to 200 real estate professionals, developers, service to East Metro IT businesses. A loosely knit group owners and site selectors. Persons interested in sponsoring called Cyber Village has performed this function in the and participating in the conference should call Mike Szeliga past. We are investigating whether or not it is possible to at 952-885-0815 ext.201. take the Cyber Village concept to the next level of an industry cluster service organization. Second, we are The Dakota County Economic Development Partnership identifying the gaps in service that may exist when it comes is hosting another "Get Jobs Job Fair" in cooperation to providing economic development assistance to IT with Minnesota Workforce Center. The event will take businesses. The study will identify the inhibitors in place place on Wednesday,March 13, from 11:30 a.m.to 6:30 p.m. when it comes to assisting the growth and expansion of IT at the West St. Paul Armory, located at 1346 Robert Street, in businesses. The report should be complete shortly. Wood West Saint Paul. Contact Steve King at 651-450-2694 for of McGough, Jeff Redmon from Redmon Law, Ryan exhibitor and other information. Schroeder from the City of Cottage Grove, Gene Cross of US Bank, Mayor Yale Norwick of Mahtomedi, Steve Lehr of CB Richard Ellis, and Tim McShane of Ryan Companies. The Metro East Broadcast is a monthly communication from the Metro MEDP would like to thank the sponsors of the 15th Annual East Development Partnership. We would like to share your news with Meeting. other members of the Partnership. Please send your press releases to: 3M MEDP McGough Development 401 North Robert Street, Suite 150 Twin Cities-Metro Saint Paul,MN 55101 United Properties riiiri-- (651)224-3278 fax(651)223-5484 • US Bank www.medp.org Wells Fargo Xcel Energy Volume III, Issue II, February 02 City of Cottage Grove • Memo To: Economic Development Authority Members (4,04 From: Michelle Wolfe, Assistant City Administrator Date: 02/08/02 Re: Calendar of Upcoming Events Item 4H EDA Meeting February 12 EDA Meeting March 12 • Joint City Council/EDA Meeting March EDA Meeting April 9 2002 Golf Tournament August 20 111 \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Calendar.doc City of Cottage Grove • Memo To: EDA Members 1‘ From: Michelle A. Wolfe, Assistant City Administrator Date: 02/08/02 Re: Cottage Grove Training and Education Facility Item 41 Attached is information about a proposed Cottage Grove Training and Education Facility. An informational forum sponsored by the Cottage Grove Area Chamber of Commerce was held on February 7. Several members of the EDA as well as City Administrator Schroeder and me were in attendance and can share their comments on the project. On that same date, a press conference was held. This is an exciting • project and will be a marketing strength for the EDA when responding to inquiries. Attachments • F:\Groups\PER_ECON\Economic Development\EDA Memos\2002\Feb 02 Education.doc Concept Summary for Cottage Grove Training and Education Facility • FOR DISCUSSION PURPOSES Name Cottage Grove Training&Education Center A cooperatively managed resource for employee and student development Founders and Governance Members Cottage Grove Area Chamber of Commerce, 3M Cottage Grove,Marathon Ashland Petroleum,Inc.,Independent School District#833,Washington County Workforce Center, Southeast Metro School To Work Partnership, and Inver Hills Community College Purpose The Center is being proposed to help local businesses more efficiently meet their employee training and educational needs by providing a convenient location; customized, quality learning products; and cost-effective resource utilization. In addition,the Center may also be utilized to provide unique college courses for current high school juniors and seniors through the Post Secondary Enrollment Options program, and serve working adult college students in the evenings. Utilization Strategy Based on Customer Segments • Initial discussions about the Center resulted in the idea to maximize use of the facility, and value to the community,by serving several market segments based upon the most typical time people would be attending a scheduled training event or course. The idea is based around a theoretical daily schedule that might be structured as follows: Time Block Audience Products Early morning (7-8:45) PSEO students College courses typically not available at the high school, esp. info technology Daytime(9-3:45) Corporate Customized courses,technology courses, employees in-house programs, other vendors Late afternoon(4-5:45) Small business Info tech courses,business development, owners/employees entrepreneurial education, SCORE, SBA Evening(6-10) Adult students Existing college courses in a wide variety • and some PSEO of disciplines. (55016 is largest zip count students for for IHCC students) Additional utilization idea The strategy above outlines possibilities for scheduled, face-to-face instructional programs only. In addition, it is possible to include an"e-learning"environment for employees. This type of flexible lab-learning is often quite efficient and economical for learning specific end-user applications, certain skill-development topics, and required HR topics for all employees. Courseware is available through CDs,videos, or the Internet, and some type of online assessment is usually used to validate learning outcomes. A • staffed, off-site location provides an intentional learning environment that can help employees stay focused on achieving the desired outcomes. Center Financing and Economics The success of the Center will depend primarily on its value to the major business partners,and this value equation should drive initial planning. In other words,it is imperative that the Center is designed and scheduled with the primary purpose of providing maximum value to the major business partners. Other compatible uses for the Center will certainly help cover fixed costs and generate good will in the community for everyone involved,but these uses will not generate the margins necessary to make the Center financially viable, especially in the initial years of operation. Center Operations and Governance It is proposed that Inver Hills Community College(IHCC)be the fiscal agent and manager of the Center in consultation with a management advisory board comprised of representatives from the primary stakeholders. As a member of the Metro Area Customized Training Consortium, IHCC would work with other Twin Cities educational institutions to arrange for needed training topics that are not within the college's areas of expertise. The Center could also be used for in-house training programs conducted by corporate staff Next Steps . 1. Discuss this concept overview with stakeholder representatives and revise/refine as needed. Scheduled meeting set for January 11, 2002. 2. Determine specific demand for each identified market segment, and develop a tentative calendar of scheduled programs for the remainder of 2002,with assumed start date of May 1. (Suggested complete date, including decision to proceed with lease commitment by February 22 (5 weeks from Jan. 11) 3. Explore possible locations and identify strengths,weaknesses and costs of alternatives. Make decision by March 1, and finalize lease agreement and leasehold improvements by March 15. 4. Begin scheduling facility and prepare for opening on May 1. (Feb. 25 —May 1) • • For Immediate Release Contact: Bruce Lindberg, 651.450.8506,blindbe@inverhills.edu • New Training and Education Center Planned for Cottage Grove Area Cottage Grove,MN The Cottage Grove Area Chamber of Commerce,with initial financial support from 3M Cottage Grove,is working with area businesses, South Washington County Schools, Washington County Workforce Center, Southeast Metro School To Work Partnership, and Inver Hills Community College to establish a multiple-use training and education center at a yet to determined location along the Highway 61 corridor in Cottage Grove. As currently envisioned,the new center will serve several types of learners. Early morning hours would be available to offer college courses for high school juniors and seniors who qualify for the Post Secondary Enrollment Options program(PSEO)and/or articulating Career& Technical coursework such as CISCO Academy. Weekday hours would be primarily reserved for corporate training programs, late afternoons for employees and owners of small to mid-sized companies, and evenings and weekends for offering college courses open to the general community as well as to employees and PSEO students. Inver Hills Community College will serve as the administrative and fiscal agent for the center and will provide many of the college-level courses offered at the site. The college will also help facilitate training for the corporate and business clients of the center,which may range from"in- house"corporate training modules to programs designed to assist small business owners. The center's development and operations will be guided by a management council comprised of representatives from the various organizations involved in the project. Although still in the planning stage,there has been a long-standing interest in establishing this type of resource in the Cottage Grove Area and the planning committee has set August 2002 as the targeted opening date for the facility. Community and business people who have an interest in this project are invited to contact the Cottage Grove Area Chamber of Commerce at 651.458.8334. •