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HomeMy WebLinkAbout2001.12.11 PACKET • r t low CITY OF COTTAGE GROVE • ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA TUESDAY, DECEMBER 11 , 2001 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of November 13, 2001 Minutes • 4. Business Items A. Project Updates B. Marketing Materials • 2001 Annual Report • Direct Mail Campaign—Photos C. EDA Bylaws D. 2002 Events: Business Breakfast and Golf Tournament E. Strategic Plan Update F. Senior Housing G. Calendar H. Transit Park and Ride I. River Oaks Banquet Service 5. Miscellaneous Business Items • 6. Adjourn Next Meeting Date: January 8, 2002 F:\Groups\PER_ECON\Economic Development\EDA Packets\2001\Agendas\December 11 Regular.doc City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle Wolfe,Assistant City Administrator A/ ' ( ''' Date: 12/05/01 Re: Project Updates Item 4A Attached is the list of active projects. The City has received 38 leads year-to-date. Staff will provide a verbal update at the meeting. PLANNING COMMISSION UPDATE: At the November 26 Planning Commission meeting, the following cases were reviewed: • • Pulte Homes, who applied for a preliminary plat for Timber Ridge 2nd Addition. Located at the southwest corner of 70th Street and Harkness. The Commission unanimously recommended approval of the project. • Mike Rygh applied for a zoning amendment to change the zoning from R2.5, Residential, to PUD Planned Unit Development, a preliminary plat to create five commercial lots, a site plan review of a neighborhood convenience center, and conditional use permits to allow a gas station and a daycare center. This proposed development will be located at the northwest corner of 70th Street and Hinton Avenue. The Commission voted 6 —3 to recommend the project. • Xoua Thao, dba Cedarhurst, Inc., has applied for a conditional use permit for limited commercial ventures conducted at an historic property located at 6940 Keats Avenue South. The Commission voted 8 — 1 to recommend approval. • The Commission was asked to review and comment on the draft preservation planning report for the Healy House (Hope Glen Farm) Historic Site for listing in the City Register of historic Sites and Landmarks. The Commission accepted the report as presented. It will go back to the Historic Preservation Commission and then will go on to Council at a later date. The City Council will act on these items at the December 5, 2001 meeting. Attachment \\CG_FS2\CG_FS2_MAIN\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Proj Update.doc ACTIVE LEADS QUERY EDA PACKET 12/6/01 Proposal ID Project Description 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-00-84 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-01-027 Senior Housing 5 acres ED-01-029 Industrial 10-15 acres 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 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 • Page 1 City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle Wolfe, Assistant City Administrator ' Date: 12/05/01 Re: Marketing Materials Item 4B 2001 Annual Report Staff has an early start on preparation of the 2001 EDA Annual Report. Attached is a draft of the insert document. As you know, we use the same outside folder each year, and then prepare a new insert each year with the 2001 highlights. Note that this year's • insert includes a listing of all of the 2001 EDA golf tournament sponsors. Direct Mail Campaign In last month's packet we provided you with copies from a recent photo shoot. We asked that you review the photos and offer feedback to staff about which ones you think are best to use. And, staff requested that EDA members offer any ideas they have for "tag" lines, slogans, etc to use with the photos. It is requested that you provide that input at the meeting. Advertising We do not have final rate and editorial calendar information from the publications as of this writing. We have requested the information. Once we have it, we can put together a proposed advertising plan for 2002 and present it to you at the first meeting in January. If you have any general direction you would like staff to consider as we draft the plan, please let us know at the meeting. For example, whether or not you are comfortable continuing with splitting the advertising budget between ads in City Business and in Minnesota Real Estate Journal. Or, whether other publications should again be reviewed. Marketing Folders Often when we receive inquiries, we send out a cover letter/proposal accompanied by a folder of information about the City and the Industrial Park. We have been in the process of updating the information in the marketing folders, and formatting the IIdocuments to be more professional and consistent in appearance. It is hoped we will have a sample to show you at the December 11 meeting. F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Marketing.doc 2001 City Council From the Mayor . . . Honorable Mayor As we complete a productive and eventful 2001 we look forward to working Sandy Shiely 1111 with our growing base of partners on what appears to be an exciting 2002. The City Council has adopted top priorities of highway improvements, Council Member commercial/industrial development, improved housing choices and enhanced Rod Hale community and infrastructure amenities. We are continuing to move forward in each of these areas. Council Member Cheryl Kohls We have reached the construction stage of the$206 million Highway 61/494 improvement,which will significantly improve growth opportunities and Council Member transportation access for residents and businesses in our area. The Highway Pat Rice 61 reconstruction to a freeway design will start in 2002 with completion two years later. By that point in time the new wastewater treatment plant will Council Member improve wastewater-handling capacity from 2.5 million gallons per day (mgd)to at least 10 mgd. Those projects plus a number of local infrastructure Jim Wolcott improvements the past few years, and the next three,will prepare this community for great opportunity in future years. 2001 EDA New commercial, industrial, and institutional projects from 1999 through Jim Wolcott, President 2002 are expected to exceed any other 3-year period in our history, in market Glen Kleven value and impact on the community. Several of these projects have been in Fred Luden design/development for some time and construction is now slated for 2002. Dick Pederson Anticipated projects include both redevelopment in our commercial core as Sandy Shiely well as further new development within the industrial park. The Park has Gerard Weingartner been transformed into a burgeoning manufacturing hub in a short period of • time. Most recently the city has completed additional site grading to prepare Staff Contacts for future industrial projects. Sites are now ready for the 2002 construction season providing further evidence of Cottage Grove's commitment to Ryan Schroeder working with industrial clients to facilitate rapid and seamless site delivery. City Administrator 651.458-2822 We are continuing to develop partnerships for future business opportunities. rschroedr&cottage-grove.org We have now made it a tradition of recognizing these partners in an annual celebration at our award winning River Oaks Golf Course/banquet facility. The 2002 event, our 7th,will be held August 20t. Sponsorship and Michelle Wolfe registration opportunities are now available by contacting our staff. Assistant City Administrator 651.458-2882 Cottage Grove offers many opportunities for current and future growth mwolfe)cottage-grove.org partners. We look forward to working with all of you as we build the future together. Steve Barrett Management Analyst Sincerely, 651.458-2883 cept4 9463 sbarrettcottage-grove.org Sandra Shiely Scott Johnson Mayor of Cottage Grove PHOTO OF Management Analyst THE MAYOR 651.458-2833 siohnson i)cottase-grove.org Neil Belscamper • EDA Secretary 651.458-2878 nbelscamcottage-grove.org Special Thanks to the 2001 EDA Golf Outing Sponsors! ANCHOR fig BANKCottage Grove Area Chamber of Commerce—TKDA IknUtSOIi Kraus Anderson Construction—Xcel Energy Opus Northwest LLC—Knutson Construction Bonestroo, Rosene,Anderlik, &Associates—3M Welsh Companies—Marathon Ashland Petroleum LLC Cogentrix Xcel Energy- Anchor Bank—Cogentrix Energy 2001 Highlights • Over $95 million in building construction permit 014. OPUS value including $17 million in commercial/industrial GROVE AREA permits and $44 million in institutional project ,EFCE permits. • Included are new facilities for American AGCO, Advance Corporation, Tradehome Shoes Bonestroo RoseneseneDistribution Facility, Office Max, a Country Inn & mos R 11 Ancieriikat Suites Hotel, Walgreens/Semper redevelopment, new 311/I Associates Engineers&Architects spec office/showroom and retail space in the Pine Grove and Almar Village Developments, and several ISD #833 School District expansion projects including a new elementary school. • Over 160 new homes were built in 2001 for a total permit value of$20 million with residential remodeling project permit valuation exceeding $14 : A.is_ . million. • The Gateway Redevelopment District was created to revitalize the 806 Street/Highway 61 area with projects slated for 2002 construction. A�/������Q// TKDA 118.011400 -- . DAMP TIOON& IAOW • Infrastructure projects continued as an emphasis ENGINEERS•ARCHITECTS•PLANNERS n.+r=uc with the first phases of the Wakota Bridge/Hwy 61 bid in 2001. Planning for additional projects • including the Hinton/Tower extension and Thompson Grove reconstruction projects continued. City of Cottage Grove Memo To: Economic Development Authority Members From: Michelle Wolfe, Assistant City Administrator Date: 12/05/01 1 ' Re: EDA Bylaws Item 4C The City Council formally adopted the EDA Bylaws at the October 17, 2001 meeting. There were a few changes made to the document as presented to Council. • 1. Council approved an additional sentence in Article II, Section 2, to read as follows: "The President shall be a Council representative." 2. Council approved a change to the first sentence of Article II, Section 7. "The Authority shall may employ an Executive Director who shall exercise general supervision over the administration of its business and affairs." Attached is a copy of the EDA Bylaws as approved by the City Council. As you know the Bylaws state that the Authority shall elect the President, Vice President, Treasurer, and Secretary annually. Therefore, we will plan to hold those annual elections at the January meeting. Also, Article III, Section 5 provides an outline for the order of business at EDA meetings. We will be working to implement this in future agendas. ACTION REQUESTED Section 11 of the Bylaws requires that the bylaws may be amended form time to time by majority vote of all the commissioners, provided that the proposed amendment shall first have been delivered to each commissioner at least five days prior to the meeting at which such amendment is considered. The bylaws and any amendments thereto shall not become effective until adopted by the Board and approved by the City Council. • The proposed bylaws, as approved by City Council, were provided to the EDA members in the November packet. They are again attached. After discussion, the EDA can take one of the following actions: F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Bylaws.doc 1. Adopt the bylaws as approved by City Council on October 17, 2001. 2. The EDA adopted bylaws several months ago. These were presented to City • Council who approved them with the two referenced changes. The EDA could decide to ask City Council to reconsider the bylaws already adopted by the EDA. 3. The EDA could adopt the attached bylaws with some modifications or changes. These would then need to be presented to the City Council for approval. Attachment • • F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Bylaws.doc BYLAWS OF THE COTTAGE GROVE • ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I-THE AUTHORITY Section 1. NAME OF AUTHORITY. The name of the Authority is the "Cottage Grove Economic Development Authority". Section 2. SEAL OF AUTHORITY. The seal of the Authority is in the form of a circle and bears the name of the Authority. Section 3. OFFICES OF AUTHORITY. The offices of the Authority are at the Cottage Grove city hall. Section 4. BOARD. The Authority is governed by seven commissioners (the "Board"), at least two of whom are members of the Cottage Grove city council. Section 5. STATUTORY AUTHORITY. The Authority is governed by the provisions of Minnesota Statutes, sections 469.090 through 469.1081 (the"Act"). . ARTICLE II-OFFICERS Section 1. OFFICERS. The officers of the Authority are the President, the Vice-President, the Secretary, the Treasurer, and the Assistant Treasurer. The Authority shall elect the President, Vice President, Treasurer and Secretary annually and they shall hold office for a term of one year or until their successors are elected and qualified. The Secretary and Assistant Treasurer need not be members of the Board. Section 2. PRESIDENT. The President shall preside at meetings of the Authority. The President shall sign contracts, deeds and other instruments made by the Authority. The President may submit recommendations and information concerning the business, affairs and policies of the Authority at any meeting. At the annual meeting, the President shall submit to the Board a report summarizing the activities and programs of the Authority for the past year and containing the President's recommendations for Authority activities for the ensuing year. The President shall be a Council member. Section 3. VICE-PRESIDENT. The Vice-President shall perform the duties of the President in the absence or incapacity of the President. In case of the absence or incapacity of the President or vacancy in the office of President, the Vice-President shall perform the duties of the President until a successor has been appointed and qualifies. No person may serve as President and Vice-President at the same time. Section 4. SECRETARY. The Secretary shall keep minutes of all meetings of the Board . and maintain all records of the Authority. The Secretary shall have custody of the seal of the 1 Authority and shall affix the seal to contracts and other instruments authorized by the Authority. • The Secretary shall also have such additional duties and responsibilities as the Board may from time to time prescribe by resolution. Section 5. TREASURER. The Treasurer shall (i) receive and be responsible for Authority money; (ii)be responsible for the acts of the Assistant Treasurer; (iii) disburse Authority money by check only; (iv) keep an account of the source of all receipts, and the nature, purpose and authority of all disbursements; and (v) file the Authority's detailed financial statement with the Secretary at least once per year at the time set by the Authority. Section 6. ASSISTANT TREASURER. The Assistant Treasurer shall have the powers and duties of the Treasurer if the Treasurer is absent or incapacitated. The Assistant Treasurer shall deposit the funds in the name of the Authority in a depository selected by the Authority. The Assistant Treasurer shall keep regular books of account showing Authority receipts and expenditures and render to the Authority an account of the financial condition of the Authority. In the absence or incapacity of the Executive Director and Deputy Executive Director, the Assistant Treasurer, with the President, may sign contracts, deeds and other instruments made by the Authority. Section 7. EXECUTIVE DIRECTOR. The Authority may employ an Executive Director who shall exercise general supervision over the administration of its business and affairs. With the President, the Executive Director shall sign contracts, deeds, and other instruments made by the Authority. The Executive Director shall be responsible for the management of the projects and • general affairs of Authority, under the direction of the Board. The Authority may designate a Deputy Executive Director who shall perform the duties of the Executive Director in the absence or incapacity of the Executive Director and carry out other tasks as delegated by the Executive Director. Section 8. EMPLOYEES; SERVICES. The Authority may employ a chief engineer, other technical experts and agents and other employees as it may require, and determine their duties, qualifications and compensation. The city council may, by resolution, place any employees of the city under the direction and control of the Authority or may authorize any employee of the city to devote a portion of the employee's time to Authority duties and determine what reimbursement, if any, the Authority shall make to the city for use of its employees. The Authority may contract for the services of consultants, agents, public accounts and other persons needed to perform its duties and exercise its powers. The Authority may use the services of the city attorney or hire a general counsel for its legal needs. Section 9. ADDITIONAL DUTIES. The officers and employees of the Authority shall perform other duties and functions as may from time to time be required of them under these bylaws or by the Authority pursuant to resolution. Section 10. VACANCIES. If the office of President, Vice-President, Treasurer, Secretary or Assistant Treasurer becomes vacant, the Board shall elect a successor at the next regular meeting or at a special meeting called for that purpose. The successor serves for the unexpired term of the • office. 2 ARTICLE III-MEETINGS Section 1. ANNUAL MEETING. The annual meeting of the Authority shall be held on the second Tuesday in February at 7:30 a.m. at the regular meeting place of the Authority. Section 2. REGULAR MEETINGS. Regular meetings shall be held without notice at the offices of the Authority on the second Tuesday of each month, unless that date is a legal holiday, in which case the meeting shall be held on the following business day. Regular meetings shall commence at 7:30 a.m. but the time and place of a regular meeting may be changed by the Authority by resolution. Section 3. SPECIAL MEETINGS. Special meetings of the Authority may be called by (i) the Board by motion, or (ii) the President or two members of the Board by writing filed with the Executive Director who must then mail or deliver notice of the meeting to the members of the Board of the time and place of the meeting at least two days before the meeting. Section 4. QUORUM. Four members constitute a quorum of the Board for the purpose of conducting business,but a smaller number may adjourn from time to time until a quorum is present, and when a quorum is not present, a smaller number may adjourn the meeting. Section 5. ORDER OF BUSINESS. The following shall be the order of business at regular • meetings of the Authority: 1. Call to Order. 2. Roll Call. 3. Adoption of agenda. 4. Presentations. 5. Approval of the minutes. 6. Consent calendar. 7. Open forum. 8. Response to previously raised open forum issues. 9. Public hearing and bid awards. 10. Unfinished and new business. 11. Response to previously raised EDA comments and requests. 12. EDA comments and requests. 13. Pay bills. 14. Adjournment. Section 6. RESOLUTIONS: CONDUCT. Resolutions shall be in writing and placed in the journal of the proceedings of the Authority. Meetings shall be conducted in accordance with Robert's Rules of Order,Revised. Section 7. MANNER OF VOTING. Voting on questions coming before the Authority shall be entered in the minutes of the meeting. When a quorum is in attendance, action may be taken by the Authority upon a vote of the majority of the Board. 3 • Section 8. ATTENDANCE. Unexcused absence from three (3) consecutive regular meetings of the Authority or four(4)meetings in any calendar year shall be deemed to constitute a resignation of a member, and the vacancy thus created shall be filled thereafter. To be excused, an absence must be requested in writing by the affected member, granted by the Authority president (or, the vice president if the president makes the request) and the Executive Director and filed with the city clerk. Absences may be excused for extenuating circumstances that prevent the member's attendance, such as business demands, state of health, or personal emergencies. ARTICLE IV—MISCELLANEOUS Section 1. FISCAL YEAR. The fiscal year of the Authority shall be the same as the city's fiscal year. Section 2. TREASURER'S BOND. The Treasurer shall give bond to the state conditioned for the faithful discharge of the Treasurer's official duties. The bond must be approved as to form and surety by the Authority and filed with the Secretary. The bond must be for twice the amount of money likely to be on hand at any one time, as determined at least annually by the Authority, provided that the bond must not exceed$300,000. • Section 3. CHECKS. All Authority checks shall be signed by the Treasurer or Assistant Treasurer, and by the Executive Director or one other officer named by the Authority in a resolution. The check must state the name of the payee and the nature for which the check is issued. Section 4. FINANCIAL STATEMENTS. The Authority shall examine the financial statement together with the Treasurer's vouchers, which financial statements shall disclose all receipts and disbursements, their nature, money on hand, the purposes to which it shall be applied, the Authority's credits and assets and its outstanding liabilities in a form required by the city's financial statements. If the Authority finds the financial statement and Treasurer's vouchers to be correct, it shall approve them by resolution. Section 5. REPORT TO CITY. The Authority shall annually, at a time designated by the city, make a report to the city council giving a detailed account of its activities and of its receipts and expenditures for the preceding calendar year, together with additional matters and recommendations it deems advisable for the economic development of the city. The Authority shall also submit a report to the City Council annually within 60 days of the anniversary date of the first adoption of the enabling resolution stating whether and how the enabling resolution should be modified. Section 6. BUDGET TO CITY. The Authority shall annually send its budget to the city council at a time fixed by the city. The budget shall include a written estimate of the amount of • 4 money needed by the Authority from the city in order for the Authority to conduct business during the upcoming fiscal year. Section 7. AUDITS. The Authority's financial statements shall be prepared, audited, filed and published or posted in the manner required for the city's financial statements. The financial statements shall permit comparison and reconciliation with the city's accounts and financial reports and shall be filed with the state auditor by June 30 of each year. Section 8. DEPOSITORIES. Every two years the Authority shall name a national or state bank or banks within Minnesota as depositories. The Authority may deposit all its money in one bank account. Before acting as a depository, a bank shall give the Authority a bond approved as to form and surety by the Authority. The bond must be conditioned for the safekeeping and prompt repayment of deposits. The bond must be at least equal to the maximum sum expected to be deposited at any one time. Section 9. SUPPLIES, PURCHASING, FACILITIES AND SERVICES. The Authority may purchase the supplies and materials it needs. The Authority may use the facilities of the city's purchasing department. The city may furnish offices, structures and space, stenographic, clerical and other assistance to the Authority. Section 10. EXECUTION OF CONTRACTS. All contracts, deeds, and other instruments to which the Authority is a party or signatory or by which the Authority may be bound shall be • executed by the President and the Executive Director or Deputy Executive Director or by such other officers of the Authority as the Board may by resolution prescribe. Section 11. AMENDMENT OF BYLAWS. These bylaws may be amended by the Board by majority vote of all the commissioners, provided that any such proposed amendment shall first have been delivered to each commissioner at least five days prior to the meeting at which such amendment is considered. These bylaws and any amendments thereto shall not become effective until adopted by the Board and approved by the city council. Adopted this day of ,2001. President Executive Director • F:\Groups\PER_ECON\Economic Development\EDA Bylaws\EDA Bylaws as Adopted by City Council 17 Oct 01.doc 5 • City of Cottage Grove Memo To: EDA Members From: Scott Johnson Date: 12/6/01 Re: 2002 Events: Business Breakfast and Golf Tournament yp 2002 Business Breakfast: I sent letters to Barry Sittlow, City Administrator of St. Paul Park, and Larry Bodahl, City Administrator of Newport, about the date and time of the Business Breakfast. Both City Administrators have agreed to the January 28th date. The • individual cities will decide if the Mayor or the Administrator will do the state of the city address for their respective city. A letter was also sent to Ted Mondale asking him to be our guest speaker at this year's event. The invitations will be sent out to local leaders and businesses around the first of January. 2002 Golf Tournament: The "divot repair tool" has been ordered from Trowbridge Marketing. It will go to production in a week. We were unable to put the City logo in two places on the tool because the City logo will not fit in any other place on the tool and still be legible. The logo will be on the magnetic ball marker. • Document2 City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle Wolfe, Assistant City Administrator - Date: 12/07/01 Re: More Golf Tournament Information Item 4D In discussions regarding the 2002 EDA Golf Tournament, it was suggested that we should "re-vamp" the sponsor program. Staff has prepared the following recommendation: 1. Platinum Level: $2,500 • Includes notation in annual report with distribution of 1412, one post card mailer with distribution of 782, (including company logo), also company logo at a hole and in the banquet and registration area at the annual golf outing attended by members of the development community (expected attendance of 100 to 145 individuals) including a complimentary foursome at that tournament to be held August 20, 2002 and designation on any other marketing ads throughout the year (should note how many) and in what publications (also dates if we know them) 2. Gold sponsorship: $1500 Includes the postcard but no other ads, also includes the tourney and foursome 3. Silver sponsorship: $300 Includes foursome and designation at the hole and banquet for tourney and notation with logo in annual report 4. Bronze sponsorship: $175 Hole sponsor and tag board, no foursome 5. Foursome registration: $150 6. Single registration: $ 45 411 For numbers 1 through 4, staff is trying to develop possible themes as alternates to the "Gold and Silver" titles. Some ideas are included below: \\CG_FS2\CG_FS2_MAIN\GROUPS\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Golf.doc • Use a theater-type theme (choose four): • 1. Pacesetters 2. Leaders 3. Guarantors 4. Partners 5. Beneficiaries 6. Associates • Something related to the direct mail campaign, using "tuxedoes" or "Black tie" and similar concepts. • "Partner" theme (Choose four): 1. Growth Partner 2. Partner 3. Community Partner 4. Capital Partner 5. Company Partner 6. Business Partner 7. Equity Partner • "Grove" theme, perhaps in combination with some of the above. 1. Golden Grove Partner/Sponsor, Silver Grove, etc. 2. Grove Leader, Grove Partner, Grove Associate, Grove Pacesetter, etc. • Staff would welcome input from the EDA on this topic. p p S \\CG_FS2\CG_FS2_MAIN\GROUPS\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Golf.doc 1'I 1 1 • City of Cottage Grove Memo To: Economic Development Authority Members From: Michelle Wolfe, Assistant City Administrator quit& Date: 12/05/01 Re: Strategic Plan Update Item 4E BACKGROUND The EDA adopted a five-year strategic plan in 2000. Because of progress made on many of the objectives, recent changes in tax law that impact Economic Development financing, and other factors, the EDA directed staff to coordinate an update of the 40 Strategic Plan. DISCUSSION Attached is a copy of a 2002-2005 Strategic Plan Update. This is an early-stage draft, in outline format. Some information has been filled in, but work remains. However, staff wanted to provide you with this first draft in order to receive direction and feedback as we continue to develop this update. The Mission Statement, Goals, Priorities, and 2000-2002 Objectives are taken directly from the 2000-2005 Strategic Plan document. (That document will be provided as an Appendix to this new update.) The EDA could choose to modify any of those sections as they review the plan. In Section IV, Objectives, we have added a "status report" on each objective. Staff has also developed a proposed list of objectives to focus on for the next three-year period (2002-2005). Included in the "Objectives" section is a very important policy statement from the existing plan. Some changes in wording are recommended (see strikeout and deletions.) The Section entitled "The Product" is also from the current plan, although some changes are suggested. Some new sections are proposed for inclusion, such as a section on Marketing. This section has been started but is not yet complete. Some sections (such as • "Accomplishments" have not been started as of this writing. F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Strategic Plan.doc Section VII is "Economic Development Plans." The goal here is to outline the existing condition, future direction, and SWOT (strengths, weaknesses, opportunities and i threats) for each major development area. These areas include: • Industrial Park • Commercial/Retail • Housing • Institutional • Transportation/Transit • Non-transportation Infrastructure • Recreational/Tourist Staff has begun writing some of these sections. Everything that has been completed so far is attached for your review. Some of the intended appendices have also been included in your packet. Attachments 1. Draft update 2. 2000-2005 Strategic Plan . • F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Strategic Plan.doc 11' . 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 that arc appropriate. • 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. • Utilize sound financial practices in using incentives to attract and expand businesses in the community. • Consider the use of incentives in instances where they will promote quality jobs and development for the city. • 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: Become 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 that 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 ten business sector growth priorities continue as determined through the 2000-2005 strategic planning process (Appendix A): 1. Manufacturing Attraction (affordability and best value) 2. Redevelopment of Existing Commercial Areas 3. Single Family Housing: #350,000+ 4. Retail: Restaurant 5. Office Attraction 6. Retail: Specialty 7. Retail: Big Box 7. Warehouse Attraction (affordability and best value) 7. Single Family Housing: $250,000-$350,000 • • IV. Objectives 2000-2002 The following measurable objectives were approved by the EDA for inclusion in the 2000-2005 Strategic Plan (Appendix A): 1. Industrial Park: Attract at least three new businesses per year. STATUS: In 2001 the City realized construction of the 70,000 square foot Tradehome Shoes office/warehouse, the 42,000 square foot Advance Corporation manufacturing/office and 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 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 easements/right of way or developed parcels.) 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 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, the Pine Grove development on East Point Douglas west of Menards, at Alamar Village at 70th and Keats, at the Semper/Walgreen's redevelopment parcel at 80th and East Point Douglas and at the Country Inn and Suites project site on East Point Douglas and 90th Street. Non 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. 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. 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 of the Langdon neighborhood redevelopment opportunity. A third option potentially exists with development of 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. • 2002-2005 Objectives Several additional objective are proposed for the 2002-2005 time period: 1. Provide for redevelopment or rehabilitation opportunities for the 13.2-acre Cottage Square Shopping Center. 2. Develop a Corporate Campus Concept within the Industrial Park. 3. Develop a Master Plan for the Industrail Park north of 95th Street. 4. Provide an analysis/plan for buffering/mitigation between industrial uses within the lndustrail Park and residential uses to the west of the park. 5. Propose a redevelopment/reuse strategy for reclaimed salvage or brownfield sites within the community. 6. Complete site selection process for a transit station and Minneapolis express bus service funding and approval. 7. Develop Gateway/storm holding project for area north of 80th Street, west of highway 61 with development pursued if funding becomes available. 8. Develop master plan for the Keats/Highway 61 intersection. 9. Develop master plan for the Langdon Redevelopment area. 10. 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, _ _ _ _ - _ - •- - - _ _ _ -, _ _ afe-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). 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 IP • 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 • 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 S 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 10 Accomplishments • The Product • Leveraged capital (fast start-up, financially) • Investment opportunity • Land with infrastructure • Labor pool/access • Knowledgeable staff • Financing options and incentives • Inccntive& • - -- - - - - - -- ; - - - - .. • Fast track development approval process • Service • Immediate access to Public Works and Public Safety services • Relationship with City • Long term partnership • Graded sites • Upgraded regional infrastructure, including Highway 61/Wakota Bridge 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) Future Direction: General Policy: Elected officials and staff need to 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_. 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. Future plans 1-2 years, 3-5 years for each area. 111/ VII. Economic Development Plans Industrial Park Existing Condition: The City has approximately 2200 acres zoned industrial and 792 acres within the industrial park. From that we are currently developing a 256-acre property 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, which is 3-lane to Ideal Avenue with plans within 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 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. Zoning, utilities, how we've been developing (sale price (and how we go there), TIF, map, etc Phasing (#of acres, sf per year). 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 that 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 • in any given year should be reasonably attainable. That provides a build- out time frame of between 7 and 15 years within the primary development parcel. However, with current economic concerns nationally, hesitation with new investment within the manufacturing sector is expected with a potential in the next year of under-performance of past development experience as a result. 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: • Up North Plastics 250 employees/ SF/_acres Manufacturing/Distribution/Office • Canadian Pacific Railway employees/ SF/_acres Rail Marshalling Yard • Allied Trucking employees/ SF/ acres Logistics/Maintenance/Office • Renewal by Andersen 250 employees/227,000SF/30 acres Manufacturing/Distribution/Corporate Offices • USPS Logistics Facility _ employees/11,360 SF/_ acres Logistics/Distribution/Office facility • CCE Technologies 20 employees/ SF/ 2.1 acres Manufacturing/Corporate Offices • • Tradehome Shoestores 60 employees/70,000 SF/4.4 acres Distribution/Corporate Offices • Advance Corporation 60 employees/42,000 SF/6.6 acres Manufacturing/Corporate offices • American AgCo 60 employees/80,000 SF/5.9 acres Distribution/Office Additionally, Cottage Grove is home to 3M Cottage Grove a Pilot Plant campus containing over square feet of development including manufacturing, research and development, distribution, materials handling and office facilities on a 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. Expectations for development, phasing (#acres/year, #sf/year). How much distribution/warehouse do we want vs. manufacturing? S.W.O.T. S Commercial/Retail 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 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 square feet of retail space and 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 contained the Cub/Target development totaling square feet of commercial space on • acres. Nearby development totals square feet of retail and square feet of office area. Additionally, there is a small commercial area at the southern most portion of the City off highway 61 totaling square feet of space. Another, 28,850 square feet is under development on 4 acres at 70t 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 project packaging of 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. Available parcels, sf developed total and by development, Gateway Redevelopment district, neighborhood commercial Future Direction: The City has 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. Following this would be 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 master plan 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.) Phasing, Langdon, Keats, Gateway, and time frame, West Pt. Douglas, Neighborhood commercial S.W.O.T. • Housing Existing Condition: According to the 2000 Census Cottage Grove is home to 30,582 person within 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 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 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). • 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. 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 1999. That area of the community is generally north of 70th Street and west of Hinton Avenue and 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 1325 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 acres of property at 95th and Hadley will be available for development starting potentially in 2002 • providing an additional units or an additional years of capacity. data, existing housing. NOTE: not much land left in West Draw, time until build-out, to continue pace of development will need to open land in East Ravine by ? I amount of acres/year. 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 a 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 fra had the greatest net revenue potential due to the low utilization of land 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 treat empty nester concerns of Council that attached housing of various types are included within development scenarios. Finally, in accord with 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. Emphasize $200,00-$300,00, fiscal impact data (advantages of high-end housing). Statement re: type of development. Senior Housing: acknowledge that we have sites (Langdon, Cottage Square, 80th street redevelopment as potential mixed-use sites). Mention affordable housing— while a concern in the metro region, CG has a good supply of affordable housing (as defined by the Met Council guidelines) and our needs seem to be in lifecycle housing. Data to prove it. S.W.O.T. • Institutional NOTES: Talk about community center, churches, schools, colleges. Statement: When we develop we should be cognizant of impact on other units of government and other providers of non-profit services. Statement: Attempt to work together and coordinate our projects with other governmental entities. (Ex. School district expansion,joint programming opportunities.) Existing Condition: Future Direction S.W.O.T. Transportation/Transit NOTES: Discuss Highway 61/Wakota Bridge, Hinton/Tower, County Road 19. When Wakota is done, look at the following: another river crossing, commuter rail, get rid of lights on 61 north of 494. • Statement about local improvements, pavement management program, • Industrial/commercial areas, should be high priority to maintain at a high level. Existing Condition Future Direction S.W.O.T. Non-transportation Infrastructure NOTES: Telephone/fiber optic, water, sanitary, storm, gas & electric (Collette Jurek write? For commercial and industrial districts). Map showing where fiber is. Utility: list documents currently in place. Draft Stormwater 1997, water distribution plan of , sanitary plan of 19_, state that they exist and as updated, be mindful of ensuring that restrictions in the existing infrastructure are identified and dealt with. Existing Condition Future Direction S.W.O.T. Recreational/Tourist What we have, opportunities. Existing Condition Future Direction S.W.O.T. 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\Draft.doc • • Joplin Ave. So. ,o ir °• fti �4 3 9 1 O r•' 0 o --------- 1-ClitD4142'-' �• , V 1 4 r- Z' I I. -..-..\ J7i # II , :=,,r'�—"�( O b b T O 1 r '- O6---V-1--WSUG C., -, l 411* 1 Y , N N I Nb Q t 4 KS N /'' .7*J • • 1 ,�) L '' / • 3 y H m . N l t LII ,07777Um �l\ I I' ---.7:,..„...:........7.5I 1 id .� rl tl g I. - u u u A. I _- + W N I i - .� �� • INN 1111111111 i! hOut ate. + � � i a —____I__.,___.___ ___./.........., N N .l .� '' iti 7 !1, X14 ---- Co. Rd. 19 �� e _ -7'I S Ix Faa' ins �: Fill ; gi R . 1 pi 11 141 o • 's n a. 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Strandell Workplace Consultant 651 . 298 . 9898 EDA Approval 4/11/00 Cottage Grove EDA Plan 2000 - 2005 March 2000 • EDA 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 tools and methods that are appropriate. 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. • •Utilize sound financial practices in using incentives to attract and expand businesses in the community. • Consider the use of incentives in instances where they will promote quality jobs and development for the city. • Recognize the interdependence of the private and public sector in a healthy community and foster a spirit of cooperation between the two sectors. 1 Cottage Grove EDA Plan 2000 - 2005 March 2000 Introduction On March 11, 2000 the EDA of Cottage Grove met to create goals and strategies for 2000 - 2005. Commission members in attendance were Jack Denzer (Chair), Shannon Green, Glen Kleven, Fred Luden, Dick Pederson, Gerard Weingartner and Jim Wolcott. The City Administrator Ryan Schroeder and Assistant City Administrator Michelle Wolfe also attended. Barbara Strandell facilitated the session. The meeting began at 8:00am and ended at 3:30 pm. It was held at the Cottage Grove 3M site. The Agenda and Objectives for the meeting can be found in Appendix A. The Comprehensive Plan for Cottage Grove (12/99) encompasses Economic Development. The EDA effort was to expand that document and provide specific direction to EDA staff for the next planning cycle. This EDA Strategic Plan will eventually be approved by the City Council and become part of the Comprehensive Plan. The Comprehensive Plan provides a contextual discussion of the City's history with economic development and the evolution of the EDA. It also contains general policies and goals, most of which were addressed at the EDA Strategic Planning Session. An in- depth discussion regarding Land Use and Transportation can be found on pages 99 -102 of the Comprehensive Plan (see Appendix J). Other documents used in the planning process included the Marketing Plan, previous strategic plans and 3M's Customer Survey. Commission Members received a pre-meeting survey (see Appendix B). This input was used to more expeditiously establish priorities and identify key issues during the meeting. It also provided the group with insight as to the strengths and constraints faced by the EDA. Though there was a range on some of these matters, the primary direction set by the Board was consensual to each member. To summarize, the Board accomplished the following at the Planning Session: • Set direction by identifying key priority areas for Economic Development • Established eight measurable objectives for the next two years • Identified key issues that EDA and staff will address over the next five years • Suggested strategic initiatives to support goals and issue resolution • Approved the Marketing Plan direction • Endorsed Staff proposal to utilize needed tools and resources to meet the objectives, short of losing money in the long run (subject to approval of this final plan). The two main areas that the EDA needs to complete in this process are: • Finalizing the Goals • Providing input to staff on Competitive Positioning 2 Cottage Grove EDA Plan 2000 - 2005 March 2000 Goals 2005 The EDA will refine these goals and modify/add to as needed in the month of April. Goal #1: Successfully become one of the first communities mentioned as a choice business location. Goal #2: Become 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 11110 Support existing businesses and encourage their continued growth and prosperity. Goal #5 Attract new industries that 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. 10 3 Cottage Grove EDA Plan 2000 - 2005 March 2000 Development Direction 2000 - 2005 Commission members completed the pre-meeting survey on which they indicated their priority ranking for the economic development direction. The complete, original compilation can be found in Appendix C. The group discussed these priorities and re- ranked them to create the following. Priority 1 Manufacturing Attraction (affordability and best value) 2 Redevelopment of existing Commercial Areas 3Single Family Housing: $350,000 + 4 Retail: Restaurant 5 Office Attraction • 6 Retail: Specialty 7 Retail: Big box 7 Warehouse Attraction (affordability and best value) 7Single Family Housing: $250,000 -$350,000 ISSUE: The following criteria should be used to evaluate manufacturing prospects: • Ability to generate increased tax base • Environmentally sound • Financial status (business plan, balance sheet) • Pay livable wages • Willing to be a participant in the community • Lot coverage • Minimum market value Clarification: The areas for commercial redevelopment are specified more clearly in the objectives. With this direction in mind the Board subsequently developed a clear set of measurable objectives. 4 Cottage Grove EDA Plan 2000 - 2005 March 2000 Objectives • 2000 -2002 #1 Industrial Park: Attract at least three new businesses per year. #2 Redevelop Grove Plaza by the end of 2001. #3 Secure at least two new restaurants (sit down, eat-in) by the end of 2001. #4 Have at least 80 hotel rooms available by the end of 2001. #5 Define EDA role with Langdon by the end of 2001. #6 Complete a master plan for redevelopment (including Cottage Grove Plaza, G-Will Plaza) by the end of 2002. #7 Create a development concept for Office by the end of 2000. #8 Develop a master plan for single family residence - $350K + -for each section of town; a different (one) section will be completed each year. • Clarification: These objectives relate to the specific development direction set by the Board. This does not preclude establishing additional objectives that address other goals i.e. internal and external promotion of economic development and improving the image/identity of the City. • 5 Cottage Grove EDA Plan 2000 - 2005 March 2000 Current Status The group identified several important milestones in its 11-year history. They are: • Menards moved to town • Maintaining the presence of 3M • Improved Chamber of Commerce -more active, more professional, more involved • Lessons learned about evaluating projects - e.g. Excelsior Henderson • Gained more control over the development process itself • Hired a full-time staff • Created the Industrial Park • Began marketing: advertising, selling, direct mail 4110 • Renewal located at the Industrial Park • Professional EDA staff • River Oaks Golf Course • Target Store moved to town The presentation included a brief review of four documents that highlight the EDA's history of accomplishments and the current status of economic development in Cottage Grove. The documents (Appendices D, E, F, G) are attached to this report: Chronology of events: 1991 to 2000 - This report emphasizes significant achievements, year-by-year, in EDA's history. It also delineates initiatives for 2000. Accomplishments 1999 - Report prepared by staff regarding the department's accomplishments for 1999. Workplan- The EDA staff prepared a workplan for 1999 based on the EDA iGoals ('96-'00). This report indicates the status of those workplan activities. 6 Cottage Grove EDA Plan 2000 - 2005 March 2000 Community Survey -Conducted by 3M in 1999, this survey is useful 410 toward understanding the needs and attitudes of residents of the City. Key Findings of the Survey relevant to Cottage Grove EDA and discussed at the planning meeting are: • Residents want more commercial development in the form of retail and restaurants. • 60% of those residents who work outside of the City said that they would work in Cottage Grove if there were comparable employment opportunities. • Residents indicated that they would like to have Applebee's, TGIF and Champs restaurants locate in Cottage Grove. • 29% of the respondents reported household income of $50,000 - $75,000 The "Product" (Industrial Park) What we are offering. • • leveraged capital (fast start up, financially) • investment opportunity • land with infrastructure • labor pool/access • knowledgeable staff • financing options • incentives • streamlined process: land use, permits • services • relationship with city • long term partnership i 7 Cottage Grove EDA Plan 2000 - 2005 March 2000 Strengths After the group reviewed the pre-meeting strength assessment (Appendix H) • Professional staff • Streamlined process for doing development • Workforce availability • Location/regional • Quality of life (education, ice rink, region, golf courses) • Affordability • Availability of land • 3M • Renewal • Three golf courses • Wakota Bridge • Partnerships (East Metro, Welsh, etc.) Weaknesses • From the planning session, the group highlighted the following weaknesses as the most important ones to focus on over the next five years. The idea is to take action to overcome them. This is deemed necessary to the long-term success of economic development in the City. • Self-image; internal image of City: a "bedroom" community, not as good as Woodbury, cheap housing, no shopping (even when we have the same stores as neighboring community), etc. • External image: Cottage Grove is not a player, too far away, unknown, etc. • Aesthetic Challenges: eye sores, entry points, Langdon, redevelopment opportunities, etc. • Absentee landowners: slows the entire development process. • Lack of internal promotion: city doesn't highlight its strengths to the community as a whole. • Lack of trust and cohesiveness on the City Council: second-guessing majority • decisions and changing positions on economic development direction. 8 II I Cottage Grove EDA Plan 2000 - 2005 March 2000 Opportunities • • Land: will soon be one of the closest communities to the metro area that has undeveloped land in an industrial park (at the lowest prices) • Commuter rail: currently being looked at for a Hastings to St. Paul Corridor, which would run through Cottage Grove • New river crossing: long term---between Wakota Bridge and Hastings • Transportation (5-10 years): infrastructure and leverage • Grey Cloud Island: whatever is developed there will bring new interests into the area and possibly increase revenues • More big companies locating here, long term • River • Cottage Grove Corridor: between Newport and Hastings (like the highway 36 • model) Threats • Threat ofY board's olic bdin direction focus P change / • Economic downturn • Low unemployment • Change in emotion of community - attitude toward growth • Green Corridor • State of Minnesota: Business subsidies could change and that could affect taxation and incentives such as TIF • 9 Cottage Grove EDA Plan 2000 - 2005 March 2000 1110 p Wins and Losses an analysis What have we won and why? This section needs further analysis by the EDA and staff. It begs the question, what should we go after? Renewal by Andersen • Attitude: responsiveness • Control of land • Turned over deed in a short period of time • Used incentives • Availability and accessibility of land • • Site characteristics • Ease of developing the parcel What have we lost and why? Land- 0- Lakes -- ? Excelsior-Henderson • Why did we go after this one in the first place? • Owner's residence (Belle Plaine) • Signage on the highway STAFF: It was suggested that the staff review its losses as a matter of practice, conduct a post mortem. i 10 Cottage Grove EDA Plan 2000 - 2005 March 2000 Key Issues 40 • Citizens who want to shut down the city • Owners of land • Bulletin • Fragmentation of the City (Retail) • Development costs: site development- improvement needs necessary to get a pad ready. • Changing our mindset toward Woodbury • Grove Plaza - redevelopment STAFF: From these issues (and others) develop strategies on how to overcome. Some suggestions were made by the EDA and can found under strategies. • • 11 Cottage Grove EDA Plan 2000 - 2005 March 2000 i Key Strategic Initiatives Throughout the planning session suggestions were made and ideas were generated. This is a list of those. Some of these will be developed into full-fledged initiatives that will require resources, both staff time and money. Others will be easily implemented at the activity level of the plan. • Marketing plan • Tools (TIF and tax abatement):how they will accomplish what they need to do • Leverage existing businesses • Use council members to sell. • Third Party Marketing: Identify the ultimate buyer, but also who we market to—various third parties or spheres of influence. These would include brokers, consultants, developers, bankers, and contractors. • Build a model of the Industrial Park and include trees, streets (infrastructure/amenities). Use as a sales tool. • Ask Target Stores for information regarding customer buying patterns • Conduct an internal promotional/PR campaign ❖ Work with the South Washington County Bulletin to publicize positive City activities. • Leverage transportation development for infrastructure resources. • Use golf as strategy, including Dunes. • • Take the lead in developing the Newport- Hastings Corridor - long range (like Highway 36 project) 12 Cottage Grove EDA Plan 2000 - 2005 March 2000 Strategies (Continued) 110 • 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. • Look at what Hastings is doing. • Watch what happens with the Oakdale movie theaters. • Consider the blanket purchase agreement for leveraging the Industrial Park owners. • Communicate via press releases the "good news". • • View our development in a regional context, complementing other cities and areas versus trying to be like them. • Key on having a strong manufacturing environment. • Clean up the eye sores. • Make doing business here as easy as possible. • Develop greater trust and working relationship with the City Council. • Conduct another marketing survey with a bigger sample. • 13 Appendices S A. Agenda/Objectives of Planning Session B. Pre-Session Questionnaire For EDA Members C. Priority Ranking D. EDA Chronology E. Economic Development Staff Workplan 1999 F. EDA Staff Achievements 1999 G. 3M Customer Survey H. Strengths (from pre-meeting survey) • I. Constraints (from pre-meeting survey) J. Economic Development Section of Comprehensive Plan K. Competitive Positioning S Agenda/Objectives of Planning Session (A) page 1 of 1 • EDA Strategic Planning Session AGENDA March 11, 2000 8:00 - 8:30 Objectives, Agenda and Mission 8:30 - 9:00 Current Status 9:00 - 10:00 Competitive Position 10:00- 10:15 break 10:15 - 10:45 The Perfect Prospect 10:45 - 11:15 Key Issues (from SWOT analysis) 11:15 - 12:00 Goals 2005 12:00 - 12:45 lunch 12:45 - 2:00 Goals and Objectives 2:00 - 2:15 break • 2:15 - 2:30 Key Strategic Initiatives 2:30 - 3:00 Summary Objectives of Planning Session 1. Establish Goals for 2000 - 2005 2. Identify Short Term (2 year) Priorities 3. Develop Key Strategies • 2000 STRATEGIC PLANNING SESSION (B) page 1 of 2 • 2000 STRATEGIC PLANNING SESSION PRE-SESSION QUESTIONNAIRE FOR EDA MEMBERS 4. In your opinion, what does successful Economic Development mean for the City of Cottage Grove? 5. Please rank the following 21 economic development goals in order of your priority, with"1" being the highest priority and "21" the lowest. Retail: Big box Retail: Specialty • Retail: Restaurant Manufacturing Attraction Senior Housing Office Attraction Warehouse Attraction Logistics/Trucking Terminal Market rate multi-family housing Development of Recreational/Tourist Facilities Gold Course Expansion Redevelopment of existing Commercial Areas Single Family Housing: Over $350,000 Single Family Housing: $250,000-$350,000 Single Family Housing: $175,000-$250,000 Single Family Housing: $130,000-$175,000 Single Family Housing: Below$130,000 Non-Profit/Government: Service Center Development Non-Profit/Government: Educational K-12 (school construction) Non-Profit/Government: Educational Post Secondary (school Construction) Other (Please List): • 2000 STRATEGIC PLANNING SESSION (B) page 2 of 2 • 3. What constraints or impediments do you see to achieving your most important economic development goals? Please list short-term and long-term: Short-term constraints Long-term constraints 4. What strengths and opportunities do you see for achieving your most important economic development goals? Please list short-term and long-term: i 5. Once the EDA has established its long-term goals, from which group(s) do you want input to validate your direction? (Please check the appropriate box for each.) Critical Important but Somewhat Not Important not Critical Important City Council Chamber MEDP Citizens Staff Commissions Other: 6. Finally, if the EDA could accomplish three specific things in the next two to three years, what would you like them to be? • .✓,=N:'-:;:;i i•;.:-- v.-z.'i..;.. rnni:,, _= �.;,-:;^n:v.„` �:--.-iv-^✓wv: ,i.-i.,rv.,^.-,..: i %:;,m:-..-,—vv..-w�vw.iw inn,?Z7? i EDA Economic Goals 2000 - 2005 • Priority Ranking 1— Manufacturing Attraction 2— Retail: Restaurant 2Redevelopment of existing Commercial Areas 4— Office Attraction S— Retail: Specialty ,s 6— Retail: Big box 7 Warehouse Attraction ` • i • 7— Single Family Housing: Over $350,000 7—Single Family Housing: $250,000-$350,000 ,r 10— Single Family Housing: $175,000-$250,000 • 10 Golf Course Expansion 12 Senior Housing 13 Development of Recreational/Tourist Facilities 14— Market rate multi-family housing s — 1S Non-Profit/Government Educ. K-12 (school const.) 16 Non-Profit/Government Educ. Post Sec. (school const.) — 17 Single Family Housing: $130,000-$175,000 18 Logistics/Trucking Terminal — 19 Non-Profit/Government Service Center Development — 20 Single Family Housing: Below $130,000 4— Other (Please List): movie theater • <, EDA Planning Session Iz March 11, 2000 sir < s Il COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY • CHRONOLOGY OF EVENTS, 1991 TO 2000 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 95tn Street Extension to Jamaica Completed 1996 Development Tour and Golf Outing Initial Year EDA Strategic Planning Process I-4941TH61 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 • 6 • 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 2000 (Projected) 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) MCES Interceptor Alignment Decision SWWD Storage/Distribution Decisions Wakota Bridge Project Funding Gap Will Be Addressed MCES Treatment Facility Construction West Draw Residential Subdivisions Initiation Country Suites Project Approval River Oaks Golf Course Clubhouse Opens For Business Grey Cloud Island Development Proposal Grey Cloud Township Parcel Annexation Proposal 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 Grove Plaza Redevelopment Proposal Senior Housing Proposal 3M Incinerator Project on Line* (Note: 3M has completed capital investment throughout the timeframe of this chronology) 11CG FS11SYS1USERS\RSCHROEDIEDA Strategic Planning.doc • CITY OF COTTAGE GROVE • 1999 ECONOMIC DEVELOPMENT WORK PLAN FIVE YEAR GOAL#ONE Enhance the strength of the Cottage Grove economy through the support of local industry and the attraction of new industries, which bring quality jobs, an enhanced tax base and new capital into the region. Time allocation: 1400 Hours 1999 Goal # 1-1: Support existing industry and assist them with expansion opportunities. Objective A: Implement Business Retention and Expansion Program. Task 1: Meet with each manufacturing concern at least once during 1999 to work on opportunities and challenges. MAW/RRS Task 2: Meet with major retailers at least once during 1999 to work on opportunities and challenges. MAW/KL • Objective B: Coordinate business appreciation event in cooperation with 3M Cottage Grove and the Chamber of Commerce. MAW/DK Objective C: Support Chamber activities and remain responsive to their needs and requests. RRS/MAW 1999 Goal # 1-2: Work to attract new industry to the community. Objective A: Implement marketing plan. Task 1: Conduct ongoing advertising through the Real Estate Journal and Industrial Properties publications. MAW/DK Task 2: Conduct targeted mailings to manufacturing concerns with identified tenancy needs. Ensure follow-up to mailers. MAW/SB • • Task 3: Gain access to vendor lists of local manufacturers and 41111 work actively with those manufacturers on visitation to top prospects. MAW/RRS/SB Task 4: Meet at least once during 1999 with major C/I brokers, developers and builders to ensure understanding and familiarity with Cottage Grove opportunities and programming. MA W/RRS/SB Task 5: Conduct mailing to metro area SBA bankers and accounting firms. DK/SB Objective B: Continue responding to Metro East Development Partnership and other broker/developer requests. MAW/DK Objective C: Host the annual business appreciation golf tourney. MAW/DK/SB Task 1: Reformat event to provide for cost sharing and possible dinner opportunity rather than bus tour. • 1999 Goal # 1-3: Maintain and enhance economic development tools which support successful retention/expansion and business attraction efforts. Objective A: Ensure certainty in timing of land take-down. Task 1: Provide for option agreements with landowners to facilitate timely delivery of land to end users. RRS/SB Objective B: Remain cognizant of outside economic development funding opportunities and facilitate access to those opportunities by local businesses. RRS/SB/DK Objective C: Monitor changes in state allowed development tools and react as necessary. MAW Objective D: Update and maintain labor force and employment program data created by others. DK Page 2 1999 Goal #1-4: Focus staff and volunteer efforts through effective planning, S reporting, development, and training activities. Objective A: Ensure inter-and intra-departmental communication is at optimal levels. MAW Task 1: Hold at least quarterly strategic planning meetings with representatives from Planning, Inspections, Public Works and Safety. MAW Task 2: Actively participate in regular technical review staff meetings. MAW Objective B: Complete 1999 work planning and 2000 to 2005 strategic plan. MAW/RRS Objective C: Target training and educational opportunities. MAW Task 1: Complete work group training plan reducing reliance on • Association activities. MAW FIVE YEAR GOAL#TWO Address local and regional issues critical to business site location decisions. Time allocation: 640 Hours 1999 Goal # 2-1 : Enhance the image and perception of Cottage Grove internally and externally. Objective A: Aggressively utilize cable, newspaper, and CG Reports resources to highlight Cottage Grove opportunities, programs and successes. MAW/KURRS Objective B: Prepare recommendations for streetscape enhancements. KL/DK 1999 Goal # 2-2: Improve highway access to Cottage Grove. • Page 3 • • Objective A: Ensure community representation on key transportation committees. RRS/KL Task 1: Continue to staff the Wakota Bridge, Red Rock Commuter Rail, and Metro Transportation Improvement Plan committees. RRS/KL Objective B: Work with funders/agencies to ensure improvements in transit and transportation assets. RRS/KL Task 1: Work with Metro Transit on a permanent Park and Ride in the Industrial park area. KL Task 2: Work with Washington County to ensure access to 5 year CIP improvements conducted through the County. LB/RRS Task 3: Work with St. Paul Park and Newport to ensure • Highway 61 improvements remain on schedule. KURRS 1999 Goal #2-3: Secure expansion of MUSA capacity in a manner, which supports community growth and development. KL/RRS Objective A: Monitor Comprehensive Planning efforts to ensure document facilitates business growth. KURRS Objective B: Monitor Metropolitan Council and South Washington County Watershed District efforts and participate in planning efforts to utilize infrastructure resources. KL/RRS FIVE YEAR GOAL#THREE Enhance the appeal of Cottage Grove as a place to live and work. Time allocation: 120 Hours 1999 Goal #3-1: Enhance retail opportunities in Cottage Grove. Page 4 Objective A: Monitor efforts of others in the retail area remainingcognizant of • Objective available space and development plans. MAW/SB 1999 Goal #3-2: Identify and explore opportunities for improving access to the Mississippi River for Commercial/Industrial opportunities. Objective A: Monitor efforts of others such as MNRRA and the Heritage River to ensure planning activities support continued use of the Mississippi as a working river. KUMAW 1999 Goal #3-3: Balance and diversify Cottage Grove housing stock by increasing options for availability of all market segments. Objective A: Monitor housing planning and subdivision proposals to encourage development opportunities for all market segments. KL/MAW FIVE YEAR GOAL# FOUR Support efforts to improve statewide business climate and legislative issues which impact Cottage Grove's ability to attract and retain jobs and tax base. 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O - Cn CI) • CD Cottage Grove EDA Strategic Planning Session March 11,2000 • V.!`'.'V.../^.'`'...'."vV.//...'/•N.^✓JL1^./Mil:v'./V.1:'�`✓`JI.iWv^✓�'•.�.1^: N.V.n.^.�.^./'✓.`./`./��.h,'v^ Strengths . . r^'V��'N`:'.'�.NV/`✓✓VV'Vr'V�%`v:•'//N/VJIV N�.�/��.:: 1M/`�'/WVJ:/W�/�✓/./;N`.iM//V�/M/•r�.%:/:.✓.�✓V.�N`...^��i. Short-term Strengths~ • Highly Marketable Land • Better Highway system , Post Construction • Good Work Force • TIF District • Available land • Comfortable Community, nice neighborhoods, good people • Convenient to downtown but at same time, far enough away. • Progressive EDA staff and committee members • Good track record of recent growth and attraction of business • Completion of Wakota Bridge and Highway 61 • Good staff • Good EDA • EDA and Council support • More diverse staff • We Have Land -- at a decent price • Close to Airport and St Paul • Affordability • People are discussing issues • Progressive EDA Board • City Council is supportive of business growth and development • Developing interest of business and development community Long-term Strengths: • Highly Marketable Land • Better Highway System , post construction • Good Work Force • Rail Access with cooperation of railroad • Available land and good working relationships with the state • Improved transportation • Improved marketing efforts • Improved transportation - access to city • MNDOT • Highway 61 • SE Metro SS plant • Improved/mature business neighborhood/interests • Improved staff/Council/EDA comfort with development process • • Improved Transportation/transit system 12. • Cottage Grove EDA Strategic Planning Session March 11, 2000 Constraints (Weaknesses) . .ice''l./�n✓�,1�V`^��✓%^^✓W'vV:�V✓��✓✓✓�N�Y✓��%i�M^tel�ti^VAN/��ti�//'�vv V/` Short-term nstrainW, • Highway 61 & Wakota Bridge Construction • Traffic - Wakota Bridge/Hwy. 61 • Out-of-Sate Property Owner (Mall) • Local residents do not shop locally • Lack of visible public transportation may limit growth of businesses that need to attract low-income inner city workers in case of a labor shortage. • Highway 61 and Wakota Bridge • Negative signal sent to potential Industrial and Commercial by anti-development articles. • Highway 61 improvement • Property owner needs to work with us more • Bulletin needs to be more positive about the city • Short-term constraints • Lack of marketing people don not know us • Lack of City identity • Industrial Park property owner's reps. • Transportation and Community Focus • Highway impediments/Newport traffic signals/494 bridge • Politics of creating business growth opportunities • • Politics of creating residential subdivisions in areas • Perceived as premature for development by neighbors and others • Communications • Lack of identification for our City (City of What?) • Lack of community pride in this City Long-term Constraints~ • Minnesota Tax Structure: personal and property • Workmen Compensation • Traffic - Wakota Bridge/Hwy. 61 • Lack of Consistent Direction from City leaders/Council • Quality of life issues: schools, senior housing, upscale housing and recreational facilities may limit attractiveness of region • none • none • Political culture (anti-government) • Unwilling to take risks • Industrial Park property owner's reps. • Transportation and quality of life • Sewer/infrastructure • Uncertain economic future globally • 13 City of Cottage Grove Comprehensive Plan December, 1999 • ECONOMIC DEVELOPMENT • INTRODUCTION Cottage Grove is poised for additional economic growth in the commercial and industrial sectors. As a city with an urbanized area of 30 percent of its landmass, opportunities for further economic development will continue to drive the local economy. In 1987 the City deemed that creation of an Economic Development Authority would better serve the public than the Economic Development Commission which was in place. In recent years, the EDA has been very active in promoting the community. They meet every month and often have special meetings to accommodate development projects. Annually, the members adopt a work plan, publish an annual report, and host a development tour. A guiding principal of the EDA mission links the directive of the EDA to the City's Comprehensive Plan. In 1991, City leaders recognized the need to formalize their economic development process that culminated in a strategic plan titled Vision 2002. Accomplishment of many of the Vision 2002 directives occurred within the first few years. In 1996, the Economic Development Authority revisited the Vision 2002 strategic plan and developed a new mission and corresponding goals to carry Cottage,Grove into the new millennium. The • new plan continues to reinforce key marketing strategies, business retention, business attraction, and collaborative partnerships. The Cottage Grove Industrial Park is the fourth largest contiguous industrial park in the Twin Cities Metropolitan Area. Its total landmass is 700 acres, with approximately 500 acres remaining for development. Designated for light industrial users, the Industrial Park has been slowly developing over the last 20 years, with increased activity taking place at the end of the 1990's. Industrial park development has been a focal point for the EDA since the mid-1990's. During this time, the City and the EDA invested resources for marketing, analysis, and improvements of the Cottage Grove Industrial Park. With approximately 2,200 acres zoned for industrial uses, including the 3M Cottage Grove campus, industrial development will continue to be an integral part of the City's development evolution. GOALS AND POLICIES GOAL: Enhance the strength of the Cottage Grove economy through the support of local industry and the attraction of new industries which bring quality jobs, an enhanced tax base, and new capital into the • region. -96 - City of Cottage Grove Comprehensive Plan December, 1999 POLICY: Support existing industry and assist them with expansion opportunities. • Implement a business retention and expansion process. POLICY: Work to attract new industry to the community by responding to requests for proposals and actively marketing the City and its industrial park. POLICY: Maintain and enhance the economic development"tools' which support successful retention/expansion and business attraction efforts. This would include maintaining a strong industrial park partnership with the private sector owners/brokers, development of the spec building program, laying the groundwork for a work force development effort, creating a telecommunications policy and plan, and continuing to research and develop other economic development tools. POLICY: Focus staff and volunteer efforts through effective planning, reporting, development, and training activities. GOAL: Address local and regional issues critical to business site location decisions. POLICY: Enhance the image and perception of Cottage Grove internally (with City residents and businesses) and externally (within the Metro area). POLICY: Improve highway access to Cottage Grove by continuing staff • representation on key transportation task forces and working in collaboration with area legislators to lobby for the placement of local transportation concerns on the key funding lists maintained and implemented by MnDOT. In terms of proposed transportation solutions that may not be in the best interest of the community, publicly present our disapproval and alternate solutions. POLICY: Strongly support the investigation of a new regional Mississippi River bridge crossing within the community. POLICY: Evaluate alternatives to the single vehicle commute, including the development of a transit center to offer park-and-ride, bus, and commuter rail service. POLICY: Secure expansion of MUSA capacity and expansion of the southeast wastewater treatment plant in a manner that supports community growth and development. Work with planning staff to examine areas in the community that can support a MUSA expansion. POLICY: Ensure appropriate infrastructure such as roadways, sewer, and water is readily available to designated commercial and industrial properties. • - 97 - City of Cottage Grove Comprehensive Plan December, 1999 • POLICY: Support designation of additional land for commercial/retail use. Encourage centralization of these designations along Highway 61, but include neighborhood centers. POLICY: Identify and evaluate redevelopment opportunities within the City, with focus on larger commercial shopping centers. Consider mixed uses for these redevelopment areas, in addition to retail use. GOAL: Enhance the appeal of Cottage Grove as a place to live and work. POLICY: Enhance retail opportunities in Cottage Grove. Support retail task force efforts. POLICY: Identify and explore opportunities for improving access to the Mississippi River for commercial/industrial, housing, and recreational opportunities. Monitor efforts of others such as MNRRA and the Heritage River to ensure planning activities support continued use of the Mississippi as a working river. POLICY: Work with citizen task forces, explore the current planning and regulatory framework, and identify potential opportunities in the river corridor and the greater community. Ensure infrastructure requirements are known and 4111 enhance market feasibility. POLICY: Balance and diversify Cottage Grove housing stock by increasing options for°move up' market and upscale segments. Develop an approach to attract this market of housing. POLICY: Make appropriate policy and administrative adjustments, prepare information and a 'community support' package to motivate development and promote Cottage Grove to targeted housing developers. GOAL: Support efforts to improve statewide "business climate" and legislative issues which impact Cottage Grove's ability to attract and retain jobs and tax base. POLICY: Participate in metropolitan or statewide initiatives that address "business climate' issues such as commerciaVindustrial property taxes, workers' compensation, and a statewide vision/strategy for economic development. ECONOMIC DEVELOPMENT HISTORY Economic development in Cottage Grove has not been approached haphazardly, but • with calculation and planning. In 1991, the City's leaders recognized the need to formalize their economic development process that culminated in a strategic plan titled Vision 2002. -98 - • City of Cottage Grove Comprehensive Plan December, 1999 Accomplishment of the Vision 2002 directives occurred within the first few years. The • framework for attracting new development was evaluated through two critical studies: A Study of the Retail Potential for Cottage Grove and Land Use & Market Feasibility Study-Cottage Grove Industrial Park. Both projects leveraged resources from parties with vested interest in promoting community growth and diversity. The retail component has served as a base for direct marketing to desired retail companies. It measured the local economy and examined the retail needs of the community. The industrial park study reaffirmed the City's vision for industrial growth and has provided a roadmap for phased development and infrastructure improvements. A direct result of the industrial park study was the restructuring of the City's industrial zoning ordinance. COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY Economic Development in Cottage Grove is directed and implemented by the Economic • Development Authority, with supervision by the City Council. In 1987, the City deemed that creation of an Economic Development Authority would better serve the public than the Economic Development Commission that was in place. The decision was based on the flexibility of economic development authorities to accomplish economic development efforts through powers afforded them by Minnesota State Statutes. The first guiding principal of the EDA Mission links the directive of the EDA to the City's Comprehensive Plan. Recognizing the need for coherent planning, the Economic Development Authority actively participated in the Comprehensive Plan process, focusing their energy on the land use recommendations, especially in the areas of commercial and industrial development. LAND USE Commercial and Retail • Evaluation of existing commercial areas led to the conclusion that commercial property within the existing Metropolitan Urban Service Area is limited. The scarcity of commercial property is a direct result of the intense retail growth taking place since the early 1990's. In the Jamaica Avenue commercial district, the City has experienced a large absorption of land. Numerous retailers, anchored by Target Stores, Menards, and Cub Foods, have entered the market. • With limited capacity to accommodate additional retail and commercial growth, additional sites throughout the City were considered for their retail and commercial potential. As part of the Comprehensive Plan process, the EDA supports the following sites for commercial designation: • Highway 61 and County Road 19 • • Current Drive-in Theater site -99 - • . City of Cottage Grove Comprehensive Plan December, 1999 • East side of Highway 61 from Jamaica Avenue to County Road 19 • Highway 61 and Highway 95 Attention was also given to establishing smaller scale neighborhood centers, which would provide convenience items for the immediate area. Suggestions for this type of use were: • • 70th Street and County Road 19 • 80th Street and County Road 19 • 100th Street and Hadley Avenue • Hinton and Tower Connection • West Draw Overall, the EDA recommended that additional land be designated in the 2000 Comprehensive Plan for commercial/retail use. Centralization along Highway 61 was encouraged, while at the same time the importance of neighborhood convenience was • recognized. These two philosophies appear polarized, but both meet the needs of the citizens by providing opportunity for continued growth in common community needs such as restaurants and additional retail services, and access to convenience items such as gasoline, minor groceries, and other goods. Redevelopment Opportunities • Commercial development in Cottage Grove has occurred during and after major population growth in the community. This phenomenon occurred in the late 1960's and early 1970's and again in the early and mid- 1990's. As a result, larger commercial projects such as shopping centers were built to meet the needs of local consumers. In the late 1960's, the hub of commerce centered on the intersection of 80th Street and Highway 61. Peripheral development took place on the frontage roads of East Point Douglas Road and Hadley Avenue. At the time, three shopping centers were built to accommodate the community's needs. Over the past 30 years, minor aesthetic improvements have been made to the buildings. However, the inconsistency of maintenance, coupled with the tenant mix, have caused all the shopping centers in the area to appear distressed. The area's prime location next to a major highway intersection and near dense residential development makes the entire commercial district a viable redevelopment project. Redevelopment of the area need not be solely retail oriented, but could be comprised of mixed uses including housing, service providers, healthcare and transportation. With the changing demographics of the population, an increase in businesses and services for the 'baby-boomers' is the most likely tenant mix. Industrial The development of industrial property has been an integral part of the City's economic vitality. For 50 years the community has seen investment in this sector. Primarily, 3M - 100 - City of Cottage Grove Comprehensive Plan December, 1999 Cottage Grove Center has been the main contributor, however, in the recent past other companies have also been making capital investments in Cottage Grove. 3M Cottage Grove Center is a pivotal point in the history of industrial development within the City. Fifty years ago, in 1948, 3M located Cottage Grove Center in Cottage Grove. Over the years, 3M has diversified the Cottage Grove site and positioned it to be one of the company's primary pilot plant facilities. During the past 50 years, 3M purchased over 1,500 acres in Cottage Grove. Currently, 3M is determining a land use plan for the property which will hopefully include additional manufacturing and research and development facilities. In order to build on 3M as the major employer, the City of Cottage Grove designated an area for additional industrial development. The site is contiguous to 3M, and is significant in size to allow for employment diversification. The area is located south of the Jamaica Avenue and Highway 61 intersection and is referred to as the Cottage Grove Industrial Park. Industrial park development has been a focal point of the EDA since the mid-1990's. During this time, the City and the EDA invested resources for marketing, analysis, and improvements of the Cottage Grove Industrial Park. Partnerships with the landowners and brokerage firms were cultivated with joint funding of projects as a natural outcome. In 1995, the EDA, in conjunction with the three industrial property owners, sponsored the Land Use & Market Feasibility Study-Cottage Grove Industrial Park. As a result of the six-month study, additional infrastructure improvements were completed and a cooperative marketing campaign launched. In 1997, the relationship evolved, and with the influx of excess tax increment the EDA optioned 40 acres within the Cottage Grove Industrial Park. With approximately 2,200 acres zoned for industrial uses, industrial development will continue to be an integral part of the City's development evolution. Its impact on the community is being measured as Cottage Grove participates in a pilot program sponsored by the Metropolitan Council, which measures the fiscal impacts of development on a City. Industrial development has been identified as its own fiscal analysis zone and employment projections have been developed based on low and high absorption goals. The most likely outcome will be between the low and high parameters, but the analysis does provide a benchmark from which the EDA can evaluate the results of their efforts. Overall results from the fiscal impact study may be used to guide resource allocation in promoting certain types of development. It is anticipated that industrial development is a critical contributor to the City's tax base and generates more in revenues than it takes in services. • _ 101 _ City of Cottage Grove Comprehensive Plan December, 1999 TRANSPORTATION In considering potential development scenarios, the EDA evaluated the existing transportation and road network within Cottage Grove. Three road systems were marked for further evaluation. The EDA examined the possible extension of Jeffery Avenue South to East Point Douglas Road. Initially, it was considered to be an alternate route for the neighborhood to access the commercial district. However, the EDA was concerned that the extension could cause Jeffrey Avenue to function as a collector street and disrupt the neighborhood. County Road 19 is a critical link from the community to Interstate 94. Given the possibly that the regional interceptor may travel this route, there is an opportunity to widen the road and capitalize on its status as a major arterial. The road currently serves as a major north-south route for businesses and residents and its existing capacity will be challenged as Cottage Grove continues to grow. With an expansion, comes the potential for additional commercial development, particularly at the intersection of Highway 61 and County Road 19, and possibly along the corridor to 90th Street. A significant discussion revolved around the suggestion of incorporating a regional river crossing into the Comprehensive Plan. The idea is generally supported without defining the exact location. Conceptually, the river crossing is supported by the City of Inver • Grove Heights and is depicted on Map 1, Thoroughfare Plan of the Inver Grove Heights Comprehensive Plan. It is the understanding of the EDA that the river crossing is an important part of the regional system and its construction would have an impact on the land use designations connected to it. Transit has long been a concern for Cottage Grove and with the upgrades to the Wakota Bridge and Highway 61 between the years 2002 and 2008, it will become a pressing concern. In anticipation of future congestion, the City has evaluated alternatives to the single vehicle commute. Planning efforts have commenced for a transit hub, which would facilitate both bus and, potentially, commuter rail traffic. The approximate location is in the Langdon area, near the center of the community. Access for both vehicles and passengers is adequate and land availability is good. • - 102 -. City of Cottage Grove 0 Memo To: EDA Members From: Michelle Wolfe , Date: 12/6/01 Re: Senior Housing The Human Services/Rights Commission Report on senior housing went to Council on December 5tn. The Council has accepted the report and is moving forward with the process of bringing a mixed-income senior housing project to Cottage Grove. Council has given staff the authority to send out Requests for Proposals (RFP) for a mixed-income senior housing development. 41 • Document3 • City of Cottage Grove Memo To: Economic Development Authority Members From: Michelle Wolfe, Assistant City Administrator 1' Date: 12/05/01 Re: Calendar of Upcoming Events Item 4G EDA Meeting December 11 • Chamber Board Meeting December 13 2002 EDA Meeting January 8 Chamber Board Meeting January 10 Chamber Business Luncheon January 16 Annual Business Breakfast January 28 2002 Golf Tournament August 20 F:\Groups\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Calendar.doc City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle Wolfe, Assistant City Administrator 11/ Date: 12/07/01 Re: Transit Park and Ride Item 4H Staff was recently asked to review several options that have been developed by the Metropolitan Council for a new long-term park-and-ride location. Attached are several site plans showing possible locations for the park and ride. 1. Site 1 is near Belden and West Point Douglas. Two options were drawn for this • site. 2. Site 2 is next to the South Community Counseling Services Building on West Point Douglas. 3. Site 3 is next to the Rodeo. 4. Site 4 is a triangular piece next to the St. Paul Companies property on West Pint Douglas. 5. Site 5 consists of a triangular piece next to Allina Clinic and another narrow piece across the street on MNDOT right-of-way. 6. Another site being reviewed is in the Langdon area. Staff would welcome input on these site options. Attachments \\CG_FS2\CG_FS2_MAIN\GROUPS\PER_ECON\Economic Development\EDA Memos\2001\Dec 01 Transit.doc iIIii |r' , | k § §� | . 1Z ! e | ! 6 la I W |. | | | $u 2 _ I ) | . § ° a° Pill I i • \§ ��• i . 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Staff would also like the EDA's thoughts on this proposed change. • Document2 Office of the City Administrator • Memo To: Mayor and City Council From: Ryan R. Schroeder CC: Bruce Anderson Date: 12/06/01 Re: River Oaks Banquet Service In 2001, it is projected that banquet revenue at River Oaks will total approximately $250,000. Further, the operating profit from that revenue is projected to be in the neighborhood of $110,000. The River Oaks staff is proposing a change that in 2001 would have potentially increased that operating profit to $177,500. Requested of Council is 1111, positive consideration of the change allowing for that potential increase in margins. Currently River Oaks operates banquets with a stable of eight caterers and in-house catering. The caterers are Tinuccis, The Point, Lorentz (Cannon Falls), Catering by Joyce, the Steamboat Inn, Park Cafe, Kramers Catering, and Aramark. The last four caterers do very small volumes of business at River Oaks. The first four have booked a fair amount of business. The bookings come from a fairly wide area with approximately 20% from Cottage Grove, 50% from Hastings, another 15% from Woodbury, and the final 15% from an assortment of communities including River Falls Wisconsin, South St. Paul, and St. Paul. According to the staff about 10% of patrons desire choice in caterers with the balance driven by other issues such as price, availability of the date, and the like. Proposed is that River Oaks market the facility without mention of catering choices. What this means is that there would be a menu of dinner options provided by River Oaks. Further, that in most cases the • •Page 1 • banquet meal preparation would be provided by River Oaks (it should be noted that River Oaks already does the service and in many cases the meal preparation). The customer would not be afforded the opportunity to choose a particular caterer. However, River Oaks would continue to have relationships with Tinuccis, the Point and Lorentz for those situations where we would need assistance (two or three events booked at the same time or other situations within which we are not able to respond completely to the demand). The customer, however, would not be able to differentiate between a meal coming out of the kitchen prepared by a City employee and a meal coming out of the kitchen prepared by an employee of a caterer. The most significant change and benefit would be to give individualized attention to and quality control of all aspects of planning and coordinating events. An added benefit with this change is the opportunity to customize a banquet package rather than having to work within whatever constraints exist with an outside catering service. This change is not expected to impact meal quality, service of that meal or staffing in any significant way. We currently have two part-time cooks • (one who has gone through culinary school) and other staffing, including the Manager and Assistant Manager who assist or serve as backup to that staff. That level of staffing is not proposed to change. We currently provide the wait staff and service at all events. We would add hours to our existing complement of part time staff in this area in an estimated amount of $84 per event for an event of the size shown in the attachment (280 customers in that example). On this attachment which shows an recent event catered by River Oaks, is detailed that we spent $1968 in operating to book a $6,881 event. Had this same event used an outside caterer our operating would have risen to $3,873 reducing our margin from 71% to 44%. Taken over the entire 2001 banquet year this difference in margins could have resulted in additional profit of $67,500. In 2001, there were roughly 150 events of various sizes hosted at River Oaks. To date there are 60 booked in 2002, which is ahead of the level booked at this time for 2001. The staff is very concerned about the service quality and the reputation of the facility for these events. The belief is that this change will increase their ability to control service levels more than was possible over the past couple of years (different caterers •Page 2 react to our program differently, for instance the use of china is not • desired by all caterers and we demand it to reinforce the high quality available to the customer). Staffing, and our ability to recruit will be an ongoing concern with or without this change. Most of our staffing turnover is in the bar and wait staff, not the kitchen (although that, of course, happens as well). As stated above, with this change we do not intend to add staffing beyond existing levels but opportunities for expanded work hours will most likely exist for present personnel. The staffing challenge is the same one that is faced by our competitors and the caterers themselves. Our belief is that we can respond under this format to that challenge (with three caterers in reserve for emergencies or double bookings). Booked events in 2002 for which an assignment of an outside caterer has been made will continue. Thus, we will have the better part of a year to integrate this new system. River Oaks is requesting Council authorization to amend the marketing per the above. For your information, I have enclosed the year to date operating statement. Our net income from operations was budgeted at $284,500 while through November we show income of $211,332. Comparing the twelve months of 2000 to eleven months of 2001 the golf operations net is down from projections by $37,468 while the clubhouse is down $12,374. Meanwhile depreciation has increased (an expense affecting operating income) by $23,326. Revenues at the clubhouse are up 24% from budgeted figures but expenses, including cost of goods sold is also up. The catering proposal herein is expected to reduce those relative costs (increasing margins) thus positively affecting operating income. I have also included here a number of customer thank you cards relating to the banquet facility. Council Action: By motion, authorize the change in the marketing/food preparation operation at River Oaks bringing the majority of banquet food preparation in-house. F:\USERS\RSCHROED\River Oaks Catering.doc411 •Page 3 • ',MEI NVIIMMI 0000 0 d 000 0 0 ex Ci cCoorn coo o v W o .-• co co o .d. t N 't c0 M EA EA EA EA EA EA 0 O 0 0 O O O O O Q Wc O O O O OEtE2 6 v aooa00co W O O O • Q U N ci Et Cc U EA EA EA to EA a a W 0 QWcp CCOh Lci LUOZC9 Q 090) m � IX UN • 69 O i— l— it Er. 1m ., _ _ a a .J 000 0 0 000 J U 0 °r- (0 0 rn ' Z 00 W t cv v co v w ti o Efl EA EA EA EA EA _ CC EA EA I— w Q o 0 0 c 0 0 �y 0 O N <z OO • W 00000 Q z < QO h 00000 J 0 ¢Ow ▪ WO vac'`oa° 2F,,, 0 0 o ww N U ] �L Fe EA EA EA EA EA a Q. W *A Q O ' CITY OF COTTAGE GROVE, MINNESOTA GOLF COURSE COMBINING STATEMENT OF REVENUE,EXPENSES AND CHANGES IN RETAINED EARNINGS Through 11/30/01 With Comparative Totals For The Year Ended December 31,2000 • 11 Months ending Year Ended 11/30/01 12/30/00 Golf Total Golf Total Course Clubhouse 2001 Course Clubhouse 2000 Operating revenue: Charges for services-user fees $1,161,612 $437,569 $1,599,181 $1,194,354 $299,897 $1,494,251 Operation and maintenance: Personal services 203,623 184,694 388,317 194,639 133,813 328,452 Commodities 73,900 23,782 97,682 78,680 30,920 109,600 Commodities-items for resale 98,197 189,369 287,566 66,708 139,566 206,274 Contractual services 46,741 33,598 80,339 33,144 16,513 49,657 Other charges - - - - - - Total operation&maintenance expenses 422,461 431,443 853,904 373,171 320,812 693,983 Operating expenses: Administrative and general: Personal services 166,659 - 166,659 184,867 - 184,867 Commodities 12,569 - 12,569 14,121 - 14,121 Contractual services 132,491 - 132,491 135,354 - 135,354 • Other charges 21,000 - 21,000 20,900 - 20,900 Total administrative and general 332,719 - 332,719 355,242 - 355,242 Depreciation: On assets purchased 144,439 56,787 201,226 133,365 28,394 161,759 On assets contributed - - - 4,598 325 4,923 Total depredation 144,439 56,787 201,226 137,963 28,719 166,682 Total operating expenses 899,619 488,230 1,387,849 866,376 349,531 1,215,907 Net income from operations 261,993 (50,661) 211,332 327,978 (49,634) 278,344 411 Nonoperating revenue(expenses) Investment earnings - - - 39,303 - 39,303 Miscellaneous - - - 827 3,793 4,620 Gain(loss)on disposal of fixed assets - - - 1,102 - 1,102 Debt service: Interest (88,010) (58,340) (146,350) (93,593) (59,836) (153,429) Paying agent fees (1,637) - (1,637) (818) - (818) Bond issuance costs (1,899) (1,496) (3,395) (2,252) (1,925) (4,177) Total nonoperating revenue(expenses) (91,546) (59,836) (151,382) (55,431) (57,968) (113,399) Net income 170,447 (110,497) 59,950 272,547 (107,602) 164,945 Credit arising from transfer of contributed depredation to contributed capital - - - 4,598 325 4,923 Net increase in retained earnings 170,447 (110,497) 59,950 277,145 (107,277) 169,868 Retained earnings-January 1 859,176 (107,277) 751,899 582,031 - 582,031 Retained earnings-December 31 $1,029,623 ($217,774) $811,849 $859,176 ($107,277) $751,899 i OTA pe MINNESOTA PUBLIC GOLF ASSOCIATION A z PG c" A qf -1 0� gSSOG Sunday,August 5,2001 Dennis Neitz 11099 South Hwy.61 Cottage Grove,MN 55016 Dear Dennis: Thank you for the food service provided by you and your staff at our MPGA Junior Publinks Tournament last Tuesday,July 31,2001. The food and value was beyond that which has been set out for this event in the past and the selections were well planned for the Junior players. The use of your facility for our tournament headquarters and for the scoring was a lifesaver for those of us spending the day in the 95 degree temperatures outside. In short,the food and facility were first class and suitable in every way for our purposes. Thanks for taking care of us and making the facility available to the MPGA workers,the Junior Players,their friends/caddies and the parents. Best regards, 19-(0—Joe•f)?(IPPelb."4/11 Loren Hegland MPGA Junior Publinks Cochairman . • . Ytt-e-1.- • / all c2?dO/' 0 / /d--e- / 01, -/-Ar-7•I/i--7 ,- ii3Orie_/":1 , 1 v/ L 4 ,e y(A/te 14/ i lievtir //-e d,efit-l:7 / 1/01 -/-tie 4„e -, ,,,aai , /,„ (7 ,2,u• / I- Leyt ..-- ok, u--/--k2_ /z-z7c--7y2-47 • • i , /41&6 'is 0 , " S , , . 4, . k seREUBEN SR.AND BONNIE JO MAUSOLF 10787 GREY CLOUD ISLAND DR.S. 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