HomeMy WebLinkAbout2000.01.11 PACKET CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUTHORITY
AGENDA
TUESDAY, JANUARY 11 , 2000
7:30 A.M.
1. Call to Order
2. Roll Call
1111
3. Approval of December 7, 1999 Minutes
4. Business Items
A. Project Updates
B. Business Breakfast—"State of the Cities"
C. TIF District
D. 2000 Public Improvements
E. Marketing Plan and Update
F. Livable Communities Grant
G. Zoning Text Amendment
5. Miscellaneous Business Items
• 6. Adjourn
Next Meeting: Tuesday, February 8, 2000
F:\GROUPS\PER_ECON\KEB\EDA Packets\2000\Agendas\January.doc
• City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator AO
Date: 01/07/00
Re: Project Updates Item 4A
OFFICE MANUFACTURING: CCE
The TIF Public Hearing is scheduled for January 19. (See Item 4C in this packet.) Staff
has reviewed the initial site plan and provided feedback. Work continues on pond
design and setback issues. The need for ponding, truck delivery, and the size of the
• building are creating a re-evaluation of the lot size. In addition, the final lot
determination must wait until the post office site is finalized. The development
agreement has been written and forwarded to CCE.
Related to this project as well as the post office is construction of the regional storm
water system. Staff is expecting to present the EDA with a proposal to start
construction. Earlier, the EDA allocated funds for the engineering design. The initial
design work will be completed prior to next month's meeting. (The design for the
portion adjacent to the USPS and CCE sites may be completed in time for the January
meeting.)
METRO EAST
We did not respond to any Requests for Proposals since the last EDA meeting. Metro
East forwarded three proposals to us during the past month. Two of them specified a
desire to locate in the Northeast quadrant, so we did not respond. The third required
rail access that we could not provide.
As far as the proposals we previously submitted, the following information is available:
1. Ryan and I met with a company on Monday November 1. This company works in
paper products. They are interested in seven acres, with a 30,000 square foot
building. In addition, they want the ability to expand to 50,000 square feet. We had
previously submitted information and a proposal to this company. Based on what
we provided, they were interested in meeting with us. A meeting with Ryan and I,
Fred Luden, and Rob Tracy was scheduled at the 3M facility on December 7. The
purpose was to provide a forum for this business owner to talk with us further about
opportunities in Cottage Grove. However, he was unable to attend the meeting due
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to last-minute car trouble. I recently spoke with him, and he indicated that he is still
interested in Cottage Grove. However, he is also strongly considering a site in •
Woodbury. I will update you further at the meeting on January 11.
2. 2-acre office/warehouse, international (submitted late August): The CEO and his
representative here conducted site visits on their own on September 1. Apparently
they were pleased with the Metro East sites, but have not made any decisions yet.
They have not yet developed their short list, but this project is still very "alive" and
they seemed to like Cottage Grove. No new information is available at this time.
3. Transportation headquarters, 15,000-20,000 sq. ft building (submitted late March):
Originally, Cottage Grove was on short list for the owner. The client hired a broker
after meeting with MEDP, and the process seems to have slowed. They are not
returning calls to MEDP staff.
4. Industrial Manufacturer seeking an expansion facility for corporate headquarters.
They are interested in 8-10 acres for an 115,000 square foot building. Currently 130
employees with 5% growth per year. The client indicated strong interest in Cottage
Grove, and asked whether a "Butler" building would be acceptable. I indicated that
such a building would probably not meet City requirements. It appears that currently
MEDP's efforts are directed at convincing them to build in Minnesota. It that is
successful, they will likely look at another city that would allow a "Butler" building.
5. We received a request for a metal manufacturing expansion facility. The original
request included 80-90' ceiling height (for cranes.) When the ceiling height
requirement was reduced to 40', we submitted a proposal (in late November). As of •
this writing, no new information is available.
I can provide additional information about these projects at the meeting.
HOTEL/RESTAURANT/OFFICE
No new news to report.
GROVE PLAZA
No new news to report.
API
I recently received a letter from the company president, thanking us for hosting the tour
and lunch in November. He indicated that they are finishing their strategic planning
process, and expect to then proceed to full consideration of a possible move.
HIGH TECH MANUFACTURING
In late October we received a request for information from Cresa Partners. They are
working with a high-tech manufacturing company looking for 65 acres. They are in the •
first stage of simply trying to identify industrial parks with that much land available. We
\\CG_FS1\SYS\GROUPS\PER_ECON\Economic Development\EDA Memos\2000Uan 00 Proj Update.doc
responded with a packet of information and a map of the Industrial Park. There is no
• new information to report on this project at this time.
POST OFFICE
The site plan has been submitted. Staff will be proceeding with an administrative
review. The plat has not yet been submitted. Work continues on the pond design.
BRAA is reviewing the NURP (National Urban Runoff Pollutants) requirements.
MURPHY WAREHOUSE
Discussions continue with possible tenants for this facility.
MISCELLANEOUS
• Planning staff continues to work with a developer for the property next to and behind
Menards.
• We received an inquiry about vacant commercial parcels. A broker was searching
for a site for a new financial institution. Planning prepared a map and sent additional
information to the broker.
• A local realtor inquired on behalf of a client interested in re-locating to Cottage
• Grove. The client is looking to build a facility with 2000 SF office, and 6000-7000 SF
warehouse. A packet of information was sent to the realtor, and staff will continue to
follow-up.
• CP Rail did not yet submit the application for expansion. There may be a meeting in
the next 2-3 weeks to discuss future direction for this property.
• Community Development is preparing an ordinance related to neighborhood
commercial centers. After the Planning Commission reviews this document, a copy
will be forwarded to the EDA for review.
As usual, we will attempt to get further updates regarding these projects between now
and the meeting on January 11.
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CITY OF COTTAGE GROVE
Memo
To: Michelle Wolfe
From: Dan King Sa
Date: January 6, 2000
Re: Business Recognition Breakfast
The Annual Cottage Grove Business Appreciation Breakfast has been set for
. Monday, January 24 at 7:00 AM at the 3M Cottage Grove Center. Over 650
invitations were sent the last week in December to all area businesses,
government officials and school board members. As of January 6, we have 24
RSVP's, and are expecting many more.
There will be a brief welcome and introduction from Fred Luden, and then the city
administrators from Newport, St. Paul Park and Cottage Grove will give "State of
the City" addresses. City Hall staff will have the EDA/City display up with
information on various city services and projects (eg. golf course, recreation,
comprehensive plan, EDA Annual Report, others.)
The following will again have information booths available for reference during
registration and after the presentations:
Verle Albu Minnesota Dept. of Transportation
Patricia Neuman Minnesota Department of Trade and Economic Development
Sandra Cullen Washington Co. Transportation and Physical Development
Mel Aanerud Small Business Administration
Both the South Washington County Bulletin and the Cable Commission have
been notified, and the Cable Commission is going to tape the event.
•
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In appreciation for your business and your commitment to the community, we
cordially invite you and your key personnel to a complimentary breakfast. This
year the City Administrators from Newport, St. Paul Park and Cottage Grove
will again present a "State of the City" address. This is your best opportunity to
hear speakers' address various issues such as transportation improvements and
regional growth, which will be affecting the business community now and in the
future. Representatives from the Small Business Administration, Minnesota
Department of Trade and Economic Development, Washington County
Department of Transportation and Physical Development, and the Minnesota
Department of Transportation will have booths and information available for
attendees.
DATE: Monday,January 24, 2000 .
TIME: 7:00 am to 9:00 am
PLACE: 3M Cottage Grove Center, Building 116
AGENDA: 7:00 Registration
7:30 Breakfast served
8:00 Introduction and Welcome from Fred Luden, 3M Site Manager
8:10 Chamber of Commerce Update -Chamber President
8:20 "State of the City" - Newport, St. Paul Park, Cottage Grove
8:50 Transportation issues- Myra Peterson, Washington County
Commissioner
Space is limited, so please call ahead and make reservations for this event.
Respond to Dan King at (651) 458-2833 by January 14, 2000 with the names of
those attending. Don't miss this opportunity to learn about the growth in the
area and share your views.
Sponsored by:
Cottage Grove Economic Development Authority
Cottage Grove Area Chamber of Commerce
3M Cottage Grove Center 0
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City AdministratoriktX)
Date: 01/07/00
Re: TIF District 1-10 Item 4C
Because of the tight time frame, I will not have the TIF plan and program in time to
forward it to you with your packet. However, it will be available on Tuesday. In the
meantime, I will try to provide you with the basic information contained in the plan, so
• that you may feel comfortable proceeding with a recommendation. The public hearing
is scheduled for the City Council meeting of January 19, 2000.
PROJECT IMPETUS
The impetus for proceeding with the development of TIF District 1-10 is the CCE
project. This is the manufacturing company wishing to construct a 15,000 S.F. facility in
the Industrial Park, next to the Post Office location. We could have proceeded with a
TIF process solely for this project. However, upon review and study, it appeared
advantageous to include other vacant industrial park parcels in the district. The
advantage is that when other projects are ready to proceed, the process will be more
flexible and efficient. Without this approach, the City would need a separate TIF
process for every project that proceeds.
A copy of the draft project description and budget are attached for your review. These
drafts have been sent to Ehlers & Associates, and they are preparing the TIF program,
plan and resolution. The Planning Commission will review this on January 24. City
Council approval will be contingent upon Planning Commission approval.
Attachments
•
\\CG FS1\SYS\GROUPS\PER ECON\MAW\EDA Memos\Jan 00 TIF 1-10.doc
TIF District No. 1-10: Project Description:
Tax increment financing is necessary to assist in the write down of land costs and utility
installation to accomplish the development of upto 60 new buildings in the Industrial •
P P 9
Park in the City of Cottage Grove. The Industrial Park Project is going to be phased in
over a period of years. This phase of the project is estimated to be 20 buildings upon
completion.
The current project being discussed is a manufacturing concern that uses high-speed
reduction equipment in an aggregate material breakdown process. The product is
utilized to make product such as sandpaper, toner, and grit. The building has a
preliminary estimated market value of$525,000 when completed.
The initial proposed project would not occur but for participation from the development
authority through dedication of increments generated from the project. The generated
increments are dedicated toward a partial write down of land acquisition costs as well as
provision of regional and area municipal utility improvements. The project budget
includes initiation of the regional storm water system through the industrial park that
provides for a transmission way of storm water in accordance with the adopted storm
water plan of the City. In addition, the existing sanitary sewer trunk main for the area
traverses the project parcel. The sanitary sewer fund will relocate this sewer main to
the 95th Street corridor from the western edge of the development parcel to the eastern
parcel limit. The main will also be constructed from that point to the south to reconnect
with the existing main approximately 300 feet south of 95th Street. As one of two initial
projects within the western most portion of the industrial park there existed the above .
project constraints and design difficulties mandating project participation. While future
projects may have unique constraints as well, the initial projects make substantial
headway in solving infrastructure issues unique to these sites and to the industrial park
drainage districts.
Additional parcels are included in the district in order to increase the flexibility of the City
and its Economic Development Authority in development of the Industrial Park. A key to
facilitating possible development is the efficiency with which the City can process a new
project. When competing with other cities and states for such business location
opportunities, this can be a decisive factor. This has become even more important as
our labor market shortages continue to be a factor as companies evaluate possibly
locating in the Twin Cities Metro area.
The total budget for TIF District 1-10 includes an estimate for the development of up to
20 buildings; however, it is expected that not all of these will be completed during the
duration of the district. At this time, the portion of the budget dedicated to the initial
project is $162,620 over the 11-year life of the district. The total initial project
investment is estimated at $861,620, of which $699,000 is leveraged private
investment.
The City expects that not all the parcels will be developed within the time frame allotted,
and would then be decertified. In addition, the district includes property that is currently
being designed as the location of a regional U.S. Postal Service facility. As soon as the •
specific parcel is designated for this parcel, it will be removed from the district.
F:\GROUPS\PER_ECON\Economic Development\1999 Leads\CCE Technologies\TIF Proj Desc.doc
• TIF 1-10 BUDGET 1/7/00
Sources of Funds: Amount
Tax increment revenue $84,741
Interest on invested funds
Bond Proceeds
Loan proceeds interfund
Real estate sales $18,000
Special assessments
Rent/lease revenue
Grants $59,879
Other: Local Contribution
Total: $162,620
Uses of Funds:
Land/building acquisition $94,800
Site impovements/preparation costs
Installation of public utilities $58,620
Parking facilities
Streets and sidewalks
Public park facilities
Social, recreational, conference facitlies or similar public improvements
Interest reduction payments
• Bond principal payments
Bond interest payments
Loan principal payments
Loan/note interest payments
Admnistrative costs $8,400
Other: State auditor fee $800
Total: $162,620
(g./economic development/1999 leads/cce technoligies/budget.xls)
410
City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator i4W
Date: 01/07/00
Re: 2000 Public Improvements Item 4D
Staff continues to prepare for the 2000 public improvements. The improvements on
Jamaica, 95th, and 100th are scheduled for construction to start on or about May 1 2000.
This includes rebuilding the existing road sections, with 100th being expanded to a 3-
lane urban section. There will be a trail on the north side of 100th. Water and storm
water extensions will also be completed as a part of this project. The 100th Street
project will terminate just past the Ideal intersection on the west and the Jamaica
intersection on the east. These improvements should be substantially completed by
October 2000.
The treatment plant construction is not expected to start until at least August, as it is
behind schedule.
•
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City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator,
Date: 01/06/00
Re: Marketing Update Item 4E
Holiday Post Card: Attached is an update from Dan King regarding the holiday post
card. It will be sent out the week of January 10-14.
Press Release: The attached press release was forwarded to the Minnesota Real
• Estate Journal earlier this week. An upcoming issue will focus on southeast metro, and
a reporter was looking for information about Cottage Grove. (We have purchased ad
space in this particular issue.)
Marketing Plan: In the last packet, I included a draft of the 2000 Marketing Plan for the
Industrial Park and EDA. Since it is rather lengthy, it was suggested that another month
to read it over would be helpful. I am including a new copy in this packet (just in
case...) I am hoping to get your feedback regarding the information presented in the
plan. Some specific areas for feedback include:
> Objectives (p: 10)
➢ Strengths, Weaknesses, Opportunities and Threats (p. 10-12)
> Promotion Strategy (p. 16-19, Exhibit I)
➢ Any other comments you may have
Attachments
IIII
F:\GROUPS\PER ECON\MAW\EDA Memos\Jan 00 Market.doc
I
CITY OF COTTAGE GROVE •
Memo
To: Michelle Wolfe
From: Dan King S>ei
Date: January 6, 2000
Re: EDA postcard mailer
The EDA Holiday postcard has been changed to a "Happy New Year's" format,
with a full color aerial shot of the Industrial Park on one side, and information •
about the park and Cottage Grove on the back. One thousand cards are being
printed, with 400 going to the EDA mailing list, and 550 to the (651 area code)
mailing list of the Minnesota Real Estate Journal. These will be mailed the week
of January 10-14, 2000. A final proof of the postcard is attached.
•
HappyNew Year
.
from the
•Cottage Grove Economic Development Authority
We would like to remind you the Cottage Grove Industrial Park
offers many amenities an expanding or relocating company
needs to be successful,including:
O An educated,skilled, growing and available workforce,
O The availability of hundreds of acres of choice land,
O Modern infrastructure serviced by NSP gas and electric,
O An excellent transportation network within minutes of
Minneapolis/St.Paul,including rail,barge,and highway,
O Two Regional/International airports within 20 minutes,
O Fast track administrative approval of development,
O Financial incentives for qualifying companies.
lb learn more about the opportunities for growth in Cottage
Grove,call Michelle Wolfe at(651)458-2882.
CITY OF COTTAGE GROVE
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Economic Development Department
7516 80"Street South
III Cottage Grove,MN55018
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PRESS RELEASE
DECEMBER 31, 1999
•
CITY OF COTTAGE GROVE
1999 Development Update
The City Council approved the 2020 Comprehensive Plan on December 1, 1999. The
Plan continues to project the rate of growth previously experienced by the City,
approximately 200 new housing units per year. This rate of growth is reflected in the
population estimates of 38,870 in 2010 and 44,866 in 2020. The current population of
Cottage Grove is estimated at 32,633. Although new residential units are down from
that experienced in the early 1990's, residential additions and other existing home
improvements have increased dramatically. New residential development in the
community will primarily occur in the northwest portion of the community, the West
Draw, which had a MUSA (Municipal Urban Service Area) expansion approved in 1996.
Infrastructure (including roads, water and sanitary sewer) were recently installed in the
West Draw to accommodate growth. As part of the Comprehensive Plan, the City is
requesting an additional MUSA expansion of approximately 310 acres, also within the
West Draw. With the reconstruction and enlargement of the existing Southeastern
Regional Wastewater Treatment facility projected for 2003, new growth opportunities
will be available in the northern and eastern portions of the community.
The value of new commercial and industrial projects in 1999 was $13,939,615. These
non-residential projects included new facilities, expansions, remodeling, and other types
of improvements. Examples include expansions of 3M facilities, remodeling of existing
buildings for new commercial and office businesses, new buildings for Kentucky Fried
Chicken and Tutor Time, and the construction of the City's River Oaks golf Course
clubhouse.
The City will be participating in a study of redevelopment and transit opportunities in
2000. The study, which will be partially funded from grant funds, will examine options
for improved transit, senior and other lifecycle housing, and redevelopment of a historic
section of the City.
Infrastructure that supports the Industrial Park is slated for upgrading in 2000. This
means access will be further improved by providing turn lanes and by-pass lanes along
the travel route from the Park to Highway 61. The City will also begin construction of
the backbone of the Industrial Park storm sewer next year. These improvements
coupled with other road and utility projects conducted in 1998 and 1999 provide ready-
to-build sites within much of the Industrial Park area.
The U.S. Postal Service is in the process of designing a regional processing facility for
2000 construction in the Industrial Park. In addition, negotiations are underway for
additional 2000 projects.
•
F:\GROUPS\PER_ECON\Economic Development\Marketing\PRESS REL MNREJ.doc
2000 MARKETING PLAN
For The
COTTAGE GROVE INDUSTRIAL PARK
r
Draft
Submitted to EDA
January 11, 2000
PRODUCT DESCRIPTION AND HISTORY •
The Cottage Grove Industrial Park consists of 600 acres located at the intersection of
Highway 61 and Jamaica Avenue. Current tenants consist of 3M, Up North Plastics,
Canadian-Pacific Railroad, and Renewal by Andersen. The U.S. Postal Service has
purchased property and is developing a site plan for a regional processing facility.
Exhibit A is a copy of the preliminary plat for the industrial park, and Exhibit B is an
aerial photograph of the park.
WAG Farms, Inc. owns a majority of the vacant available property in the park. Welsh
Companies represents the owners. The City has developed a close working relationship
with Welsh, and some limited joint marketing has taken place.
The City has an Economic Devleopment Authority (EDA) that has a primary goal of
•
developing the industrial park. From approximately 1994 through 1998, a full-time
Economic Development Director was devoted to economic development activities in the
City. This position was assigned to work with the EDA on a number of programs. Much
of the work done by this position laid the groundwork necessary to pursue development
of the park. However, the only manufacturing facility developed during those five years
was the Renewal by Andersen project. The City is expecting that, with the groundwork
laid and a large new tenant in the park, other development will follow.
The Economic Development Director resigned from the City in December 1998. A
restructuring has occurred. The Assistant City Administrator is now responsible for
coordinating the economic development efforts for the City, leading a team consisting of
•
1
the City Administrator,two Management Analysts, and directors from other City
departments.
After approximately eight months under the new organizational structure, the team has
determined that it is time to develop a new marketing approach for the industrial park.
Therefore, a new marketing plan will be developed and presented to the EDA. If
approved, the plan will be forwarded to the City Council, who will direct staff in
implementation of the plan.
SITUATION ANALYSIS
Market Conditions
Economic: With a strong economy, many companies have experienced growth. With
this growth comes the need to expand current facilities or build new ones.
•
Technological: On-line commercial real estate listing services are developing.
Increasingly, business owners, brokers, and others are expected to use these services
when looking for property. The Internet and World Wide Web are in their infancy, but
growth in the use of these areas is expected.
Political and Legal: Despite some negative press, tax increment financing (TIF) is still
available as a tool Minnesota communities can use to retain and attract businesses.
Critics of TIF, including some legislators, have been unsuccessful largely because nearby
Wisconsin has many economic development tools available to businesses. Minnesota
communities need TIF to help prevent growing Minnesota businesses from moving to
Wisconsin.
•
2
Cultural and Social: Development of the industrial park is a top priority for the City of
Cottage Grove. Industrial growth will strengthen the tax base and reduce the tax burden
on homeowners. It is believed that other commercial and retail development will follow
on the heels of such growth. The community strongly desires additional commercial
opportunities—retail, restaurants, and entertainment. According to recent surveys, the
community supports industrial park development. Potential concerns are environmental
and aesthetic impacts of possible development choices. Therefore the pricing strategy
(and use of incentives) considered by the City should vary commensurate with
development impacts.
Competitor Analysis
The City's competitors consist of other units of government (cities, townships, counties)
in Minnesota and other states. In direct competition are those with vacant industrial .
property.
Within Minnesota, all competitors have access to TIF as a financial incentive. Also
available to all Minnesota competitors are various programs offered by the Minnesota
Department of Trade and Economic Development (DTED). As previously mentioned,
Wisconsin has been very proactive with economic development, proving to be a tough
competitor. Cottage Grove also competes with other states, all of which have different
financial tools at their disposal. Factors such as location, quality of life, unemployment
rates, and"cost of living"vary from state to state, and hence affect the decision making
of companies. Other factors include educational opportunities for employees and their
families, and quality of living.
•
3
• There are several competitive barriers. Currently there appears to be a perception that the
City of Cottage Grove is difficult to get to due to congestion on I-494 and Highway 61.
However, reconstruction of these transportation corridors is scheduled for 2002 —2008.
When completed, the I-494 river bridge (Wakota Bridge)will be doubled in size from
four to eight lanes. Highway 61 from that point will be expanded to a freeway section
meeting the existing freeway section in Cottage Grove. Existing stoplights in Newport
will be removed and the roadway will be widened. A short-term barrier will be the
construction period,when travel to and from Cottage Grove may become more difficult.
Another barrier is that many companies focus on the west metro. Many are simply not
interested or aware of opportunities in east metro locations.
Many companies are interested in access to rail. While the rail runs along the northern
• edge of the park, most sites would not have direct access to a rail spur.
Because most Minnesota cities have the same financial tools, and we cannot control
location preferences or the location of rail, our competitive advantages are limited.
Therefore,we must capitalize on those we have:
• Ready land at competitive prices
• Identified available labor force
• Proximity to 3M Cottage Grove
• Customer service and responsiveness
• Quality educational institutions nearby
• Near airports
411
4
Future Trends •
As long as the economy stays strong, many businesses will continue to grow. In addition,
changes in technology result in new processes and equipment, sometimes requiring a
move to a different facility in order to remain efficient. (For example, new machinery
and processes may make it difficult to continue operations in a multi-story building,
necessitating the move to a one-level facility.) The two factors that could offset growth
in the park are an economic slowdown and continued low unemployment. Since
Minnesota has the lowest unemployment rate in the country, companies may shy away
from locating their business in our state, if they are concerned generally about a limited
labor pool.
Capabilities
Marketing capabilities are somewhat limited. As a unit of government sensitive to public •
perceptions of government spending, staff resources are less than many larger or
financially stronger cities. However, the EDA has been able to budget funds for
advertising, printing (brochures and other promotional materials), consultants and
professional services, and special events. Planned wisely, this budget can allow for
successful marketing of the industrial park.
CUSTOMER ANALYSIS
Potential customers for the industrial park include the following:
• Business owners/CEO's
• Commercial real estate brokers
• Development consultants
• Economic Development organizations40
5
10 • General contractors
• Financial institutions and financial professionals
Some of our marketing efforts can be focused on multiple target customer groups, while
others need to focus on one group in order to be effective. In addition, it may sometimes
be necessary to segment certain target groups by geographic location. For example,
marketing to metro area business owners will likely be different in some ways from
marketing nationally.
The first step is developing a database of our target customers. The master list can be
further broken down by type (broker,bank, etc.). This list can be used for direct mail and
special event promotions. In addition, we have researched the target audience for various
publications and can choose advertising opportunities to address those audiences as
needed.
Customers for the industrial park will not impulse buy. Purchasing property and building
a new facility requires a large financial investment. Therefore,primary goals for the
marketing plan should be:
❑ Name recognition, so when a company begins a site selection process, they think
of Cottage Grove.
❑ Ability to identify potential customers who are ready to begin a search, quickly
respond to their request for information, and entice them to consider Cottage
Grove as an option.
❑ Provide ample solutions for their problems and concerns
6
COTTAGE GROVE ANALYSIS AND •
STATEMENT OF OBJECTIVES
Corporate Mission
The City of Cottage Grove Mission is commonly referred to as "PRIDE". This stands
for:
Personal Service
Responsiveness
Innovation
Dedication
Effectiveness
In addition, the EDA has adopted a 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.
•
7
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.
Image
The staff, City Council, and residents have identified many image "problems":
• Association with "heavy"industry (oil refineries) in nearby communities
• Perception that we are further away from the Metro area than we actually are
• Lack of cohesiveness, both as a residential community and a business community
• Woodbury's less-prominent neighbor and recipient of the negative effects of
Woodbury's growth (expanded treatment plant, storm water drainage)
• Cottage Grove is viewed as a blue-collar"bedroom" community. It does not come to
mind as quickly as Minnetonka, Eagan, or Woodbury as a place to locate a business.
Resources
As previously mentioned, economic development staff resources have evolved. While
the same number of full-time equivalents are devoted to economic development efforts, it
is no longer a single individual. The work is spread out amongst the team members.
This brings more diversity to the talents available to assist with economic development.
Financially, the EDA has a budget of$ 44,200 for 2000. The Economic Development
department has a budget of$ 108,900 for 2000. See Exhibits C and D for copies of these
respective budgets. Additionally, the City recently received a contribution from
Cogentrix of$300,000, which has been put into a trust fund. These funds are available
•
8
for certain qualifying projects and expenses. Exhibit E is a copy of the trust fund policy. •
Combined, these financial resources, together with TIF, provide a solid budget for
economic development marketing and development activities.
Another important resource is the existing businesses in Cottage Grove, especially large
manufacturers such as 3M and Renewal by Andersen. Making sure their experience in
Cottage Grove is positive will help convince other businesses to locate here.
As mentioned earlier, staff-level expertise in marketing is limited. Fortunately, funds are
available in the budget for professional assistance as needed.
Current Marketing Efforts
Previously, the EDA marketing plan consisted of a one-page document outlining
marketing expensemarketingefforts in 1999 have consisted of the
items. The
line
following:
> Annual Report (re-designed in 1999)
> Print ads in the Minnesota Real Estate Journal (MNREJ)
❖ 13 issues plus 4 leasing guides
➢ WEB Page (out-of-date)
➢ Direct Mail
❖ Introduction letter after restructuring, sent to database of potential customers
❖ Congratulations letters, to customers who take new positions or get promoted
❖ Individual letters, following up on leads in City Business or other publications
❖ Holiday mailing, currently in development
> Two or three individual ads in special focus issues of certain business publications
➢ Annual EDA Golf Tournament
> Regular prompt response to inquiries and Requests-for-Proposals using prepared
marketing materials; routine follow-up to inquiries •
9
❖ green folders paid for by Welsh
• ❖ "Growth Partners"brochure paid for by the City
> Personal contacts/relationship development
Samples of some of the above-referenced materials are attached as Exhibit F.
Objectives
1. Increased awareness of Cottage Grove and its Industrial Park
2. Attraction of at least two new businesses to the Industrial Park per year
3. Retention of existing Cottage Grove businesses
4. Attraction of new commercial, retail, and restaurant businesses
5. Development of a more cohesive,positive image of Cottage Grove
S.W.A.T. ANALYSIS
• Strengths
✓ New team approach (and diversification of talent on the economic development team)
✓ Focus on responsiveness and customer service
✓ Available land at a competitive price
✓ New economic development trust fund
✓ Available funding for marketing activities
✓ Recent addition of quality, high-visibility project(Renewal) to the industrial park
✓ Administrative approval process (which allows for faster processing of development
projects)
✓ Attitude welcoming industrial development
✓ Highly-rated City-owned golf course
✓ Proximity of 3M (possible customer for businesses)
✓ New, expanded waste water treatment plant
✓ Road improvements around the park (some recently constructed, some scheduled for
summer 2000)
10
✓ Fire Station located close to the industrial park
•
✓ Available labor pool (see community survey results, Section VI Research)
✓ Nearness to rail
I Improving Accessibility(Highway 61 and Wakota Bridge)
✓ Seven miles south of Interstate 494
✓ Twenty minutes from Minneapolis-St. Paul International Airport
✓ Ten to fifteen minutes from downtown St. Paul
✓ Mississippi river access
✓ Nearby location of Occupational Medicine and paramedic services
Weaknesses
✓ Wakota Bridge/Highway 61 will not be completed until 2008; must endure the six-
year construction period
✓ Not fronting on a major interstate
✓ Lack of depth of economic development experience and expertise
I Lack of marketing expertise on staff •
I Time available to devote to marketing efforts is not always readily available
✓ Some image issues, as previously discussed
Opportunities
✓ Vacant land—will soon be one of the closest communities to the metro area that still
has vacant land in an industrial park (and per a recent "Top 25 List" in City Business,
one of the lowest prices)
✓ Commuter rail—currently being looked at for a Hastings to St. Paul corridor, which
would run through Cottage Grove
✓ In the very-far-off future—a new river crossing (between the Wakota Bridge and
Hastings)
Threats
✓ Constant threat of policy boards change in direction/focus
✓ Economic downturn
11
• ✓ Low unemployment—hence limiting the labor pool
RESEARCH
City Surveys
3M recently conducted a community survey in cooperation with the City. The findings
are consistent with previous surveys in 1995 and 1997—residents want more commercial
opportunities, retail stores and restaurants. They generally support industry.
A new question in 1999 yielded important information: 60 % of those working outside of
Cottage Grove responded they were"very likely"would take a similar job in Cottage
Grove if one were available. This is very important because it means we can provide a
labor pool to new businesses. Many residents commute and would love to work closer to
home.
•
Customer Survey
A survey regarding site selection was sent to potential customers in November 1999. See
Exhibit G for the tallied survey results. This information was used to develop the
promotion strategy.
STRATEGY STATEMENT
Target Market
As described in Customer Analysis Section, the City's target market consists of business
owners/CEO's, commercial real estate brokers, economic development consultants,
economic development organizations, general contractors, and financial institutions and
professionals. Most promotion efforts will address this group as a whole. However,
some efforts will be specifically designed to a segmented market. For example, the direct
12
mail holiday piece will go to the entire database list, but the mailing regarding restaurants •
will be designed specifically for restaurant chains. Most of the advertising plan is
focused locally,but some will be focused nationally. The advertising plan includes
information about the target audience of each publication, and the goal is to reach various
target audiences by advertising in more than one publication,which has been the practice
in the past.
Product Strategy
The product being marketed is vacant land in the Cottage Grove Industrial Park. The
City has partnered with the owner(s) of this property in marketing efforts. While the park
has been zoned industrial and has been available for sale for many years, it is still early in
its life cycle. This is because a large percentage of the park is still available for
development. (Exhibits A and B provide a pictorial view of the industrial park.) •
In order to facilitate development, the City must be ready to construct necessary
infrastructure in a quick time frame. It is also necessary to be able to complete the City
approval process and TIF process in a timely manner. Customer service and a quick
response time are essential. Staff is continually working on ways to ensure these things
can happen. They were very successful doing so with the Renewal by Andersen project,
but continue to look for ways to improve.
Pricing Strategy
The property owner sets the cost per square foot. The City's previous approach has been
to advertise the land at $.85 t o$1.25 per square foot. Recently, the approach has been to
state the land will cost$1.75 per square foot including infrastructure. This price is stated
•
13
• as "negotiable"because some of the land may be provided via TIF financing if the
project meets City requirements.
The City requires a minimum market value for a proposed building of$35 per square
foot. In addition, 35% lot coverage is assumed. These are quality controls. To protect
the tax base and assure high quality projects, these are the requirements that have been set
for City participation. In offering incentives, staff should consider environmental issues
such as outside storage, emissions and noise. Incentives should not be offered to
businesses that do not meet City standards in these areas.
The City then calculates the annual TIF generated by a proposed project. This figure is
used to determine if the City can provide the site to the company. Providing the site and
infrastructure is the major financial incentive the City can offer to a company considering
• a move to the industrial park.
Key to the pricing strategy is the ability to maintain the current price/square foot asked by
the property owner. Currently, this price is among the lowest in the metro area, providing
an opportunity to strengthen market position. Maintaining a good relationship with the
property owner and their representative is critical. One way to accomplish this is to
increase and improve the City's efforts to market the property. This helps them sell their
property, without great marketing expense. The City is willing to assist with marketing
the industrial park because successful development will lead to the long-term benefit of a
much stronger tax base.
Consideration should be given to a pricing strategy to be implemented while the park is
still in the early stages of its life cycle. One influence on potential buyers is the existing
businesses. It has been over a year since Renewal by Andersen broke ground. There was
14
an expectation that this high-profile company would start an influx of interest in the •
industrial park. While this, in fact, occurred it has not resulted in closing additional land
sales within the park. Therefore, to stimulate interest and gain one or two more
businesses, the EDA and City Council should consider additional leveraging of
investment on some future manufacturing prospects. Having one or two more businesses
locate in the park will improve momentum.
Distribution (Place) Strategy
The product being marketed is land. There is no distribution channel for this product.
However, there are some partners to consider. Most obvious are the property owner and
Welsh Companies. As previously mentioned the City works as a partner with these
organizations to market the industrial park. Welsh provides some marketing materials
(attached as part of Exhibit F). Welsh also hires the surveyor who provides technical •
assistance with changes in the preliminary plat. The City uses these materials when
responding to inquiries and requests for proposals.
The City is a member of Metro East Development Partnership (MEDP). This
organization is devoted to facilitating and encouraging economic development in east
metro cities. They provide marketing assistance to all member communities. MEDP has
its own marketing plan. The City needs to ensure that we are maximizing the benefits of
belonging to this organization. Participating in MEDP efforts, then carefully planning
our own efforts to complement those of MEDP can accomplish this. Close
communication is necessary to maintain a positive balance.
I
15
Promotion Strategy
The chart below outlines the promotional objectives, theme, and blend. Included in each
of the suggested promotion ideas is a list of what these areas should include. An attempt
has been made to highlight what is new,what is existing, and what can be improved.
OBJECTIVES • Name recognition
■ Increased awareness of Cottage Grove and its
strengths
MAJOR MESSAGE/THEME • Existing: "Growth Partners"
• Proposed: "Cottage Grove: Closer than you
think."
PROMOTION BLEND:
Advertising See Exhibit H for the proposed 2000 advertising plan.
This plan was developed hoping to address different
Target Market: See Exhibit H;varies target markets with different publications. It
with each publication. addresses the customer survey results in that we are
including both MNREJ and City Business.
Personal Selling The City does not employ "salespeople". However,
• staff can encourage personal selling through quality
Target Market: Each effort is proposals, responsiveness, taking prospects to lunch
different;some will be applied to the or golfing, giving tours,providing quality
whole group,others will be tailored to information,networking, and personal notes/letters.
segments of the target market.
These are areas where we should increase our focus,
since the customer survey results show that many of
these areas increase awareness of site locations.
Publicity Includes press releases, special events, the annual
business breakfast, and opportunities to contribute
Target Market:Most of these efforts articles to publications. Press releases should be
will be directed to the target market as written whenever there is "good news"to report about
a whole. a new business or other information that could make
Cottage Grove sound attractive. The Golf Outing
should continue as a special event, but consideration
should be given to other special events that would
bring prospects to Cottage Grove. However,we
should not spend too much on these efforts, since they
were not as highly rated in the survey results. Certain
publications have indicated an interest in publishing
stories about Cottage Grove; staff should vigorously
pursue these opportunities.
WEB Site The previous director created a WEB Site. It is very
out-of-date. It needs to be updated and revamped.
Target Market: All
16
MEDP Cooperate with MEDP in assisting at trade shows in •
2000. Participate in joint WEB Site and advertising
Target Market:Brokers,business opportunities.
owners/CEO's,and contractors.
Direct Mail Includes the Annual Report, holiday post card, special
focus mailings, congratulation letters, introduction
Target Market: Varies. Annual letters, and mailings to businesses with expiring
Report is mailed to the entire leases. The Annual Report was redesigned for 1999;
database, as will the holiday however, further improvements could be made for
postcard. Some informational 2000, such as including articles about existing
mailings will be directed to the businesses, and about the community survey results.
whole group,others will be The holiday post card is a new idea, which will be
designed to specific segments.
Some of the letters will be sent to implemented in December 1999. An aerial of the
an individual customer(such as industrial park will be on the front, with"Happy
the congratulation letters.) Holidays"and Industrial Park information on the
back. Proposed for 2000 is a direct mailing to
restaurant chains, providing them with the survey data
regarding the strong desire for a new restaurant in
Cottage Grove. Newly implemented recently is the
use of personal letters to potential customers when
reading in various publications about promotions, new
positions, etc. In addition, staff should continue to
look for leads in these publications, and follow-up
with letters of introduction and possibly marketing •
materials such as the "Growth Partners"brochure.
Other leads for direct mail promotion could come
from the various "lists"published in City Business.
Promotional Items Each year for the golf tournament, some kind of
promotion item is given to participants. This year,
Target Market: For use at special hats were given out. In previous years, there were
events,the whole market would be golf shirts, umbrellas, and golf balls. All with
included. However,the specialty hat
idea is targeted at existing/new "Cottage Grove EDA"printed on them. The use of
businesses. these items can be expanded, as another way to
increase name recognition. In addition, a new practice
in 1999 has been to give new businesses hats that have
the name of the company and "Cottage Grove " on
them. This is to show appreciation. For another
effort, we are currently evaluating the opportunity to
produce a City map in cooperation with the Chamber
of Commerce.
Cable TV Within the last six months, the City has begun
producing a cable TV show on public access. The
The new television show is directed at show title is "Cottage Grove: Your Development
City residents and businesses. The Partner." This show highlights both economic
new video would be targeted to the development and community development issues.
entire market identified. Staff should continue to look for ways to improve the
411
show, as well as to produce special topic shows for
17
• the channel. In addition, the cable commission could
assist the City with development a video promoting
the industrial park.
New Ideas • Quarterly newsletter to city businesses
• Improved maps of the industrial park
• Fact sheets and media kit
• New brochure and ad design with new theme
• Ad specialty item
• "Custom" Tour or other special event
See Exhibit I for Promotion Timetable.
IMPLEMENTATION
The Administration Department staff will be responsible for coordinating the
implementation of the marketing plan for the Industrial Park. The City Administrator is
Chief Administrative Officer with overall responsibility to direct implementation. The
Assistant City Administrator is team leader and responsible for day-to-day
•
implementation. Duties will be delegated as needed to the Management Analysts,
Secretary, and other City Departments. The Assistant City Administrator will also be
responsible for coordination with MEDP. The City Administrator and Assistant City
Administrator will share responsibility for coordination with WAG Farms (property
owners) and Welsh Companies. This is intended as a plan for the year 2000, although
some efforts will begin in late 1999.
Estimated Costs:
Advertising $ 18,700
Annual Report $ 2,900
MEDP Membership $ 2,500
Miscellaneous Direct Mail $ 2,500
18
New brochure/ad design $ 1,500 •
Hats $ 1,500
Newsletter $ 500
New maps $ 5,000
Special events $ 3,500
Postage $ 1,600
Cable TV, WEB Site, Fact Sheet, Media Staff time, minimal paper and lunch costs.
Kit, press releases, lunches, tours, and
meetings.
There are adequate funds for the above in the proposed 2000 EDA and EDF budgets.
While the cost of these efforts is not directly calculated into the cost of doing a project,
the long-term tax base benefits are anticipated to easily cover the costs of marketing. In
addition, some of the marketing is desired to enhance the image of Cottage Grove as a •
community. The leaders of Cottage Grove consider that a benefit that is worth some cost,
even though there may be no direct revenue to fund it. This differs from a private sector
company, with operating profit concerns. While a City must be a good steward of
monetary resources, there often are "quality of life" goals that must be considered, even if
they do not return a profit for the City operating budgets.
EVALUATION
The decision to market the industrial park and promote industrial development has been
made by the elected leaders of Cottage Grove. The goal of this plan is to develop the
most effective and efficient means for marketing the industrial park. Evaluation of the
effectiveness of this plan can be accomplished by implementing some measurement tools
during the upcoming year. These would include:
•
19
• 1. A tracking system for inquires. A spreadsheet will be developed to track the number
of phone calls that are received. The staff person taking the call will ask where the
caller heard of Cottage Grove, and list that information in the spreadsheet. This will
be useful in tracking advertising and direct mail effectiveness.
2. Recording attendance at special events.
3. Development of a community survey conducted as resources become available.
4. Cataloguing the number of new businesses locating in Cottage Grove.
5. A survey of existing businesses.
S
20
EXHIBIT I •
PROMOTION PLAN TIMETABLE
MONTH EVENT(S)
November 1999 Review current marketing materials in light of survey results.
December 1999 Holiday postcard, Develop new ad design, update WEB Site
January 2000 Annual Report, Develop new brochure, Business Breakfast,
First business newsletter
February Develop fact sheets and media kit
March Work on new maps
April Produce video
May Develop promotion item(s) for use at golf tournament and
other special events
June Annual Golf Tournament
July
August A second (new) special event
September MEDP Trade Show (in Chicago)
October
November
December 2000 Holiday Mailing
•
On-going throughout year:
> Press releases
> Advertising
> Cable TV Show
> Personal visits, lunches, tours
> Various direct mail as leads arise
> Respond to inquiries and proposals
F:\GROUPS\PER_ECON\Economic Development\Marketing\EXHIBIT I.doc
•
COTTAGE GROVE INDUSTRIAL PARK
• MARKETING SURVEY
NOVEMBER 1999
Completed By: Company:
Position:
1. If you are looking for a site in an industrial or office park (for your company
or representing a client), what factors are important to you? (Rate each factor on
a scale of 1 to 5. with "5" being "most important/critical", and "1" being 'not
important at all")
' Rate 1 - 5:
Price of Land
Location
Labor Availability
Proximity to Rail
Size of Community
Size of Industrial Park
Highway or interstate access
= Close to College/University
Proximity to Airport
• Quality of Existing Buildings in Industrial Park
Quali y of Proposal Submitted
Develo ment Process in Community
Appropriate Zoning/Land Use __..
Proximity to Fire and Medical Services
Responsiveness of City (Timeliness, Interest)
Financial Incentives 1
Depends on client
Proximity to other related business/potential
customers and/or vendors
Other: ..-... _.�.� _m..�....._....____
2. What steps do you take (or recommend to a client) when beginning a site
search? (Check all that apply):
1 Hire a broker or Consultant
-Contact a city directly
Contact an Economic Development Organization
Consult real estate and business periodicals
Contact the State Department of Trade and
Economic Development
Search on the Internet
Check Newspaper Ads
"Networking"
Prepare a formal Request for Proposals
Other: _..._......_.___ _
COTTAGE GROVE INDUSTRIAL PARK .
MARKETING SURVEY
PAGE TWO
3. If you checked "consult real estate and business periodicals" under question
#2, please list any you would consult:
E _
4. Do you regularly read certain publications to stay abreast of commercial real
estate and economic development activity? YES NO
If "YES", which ones do you read at least occasionally? (Please list)
ID
5. How are you most likely to become aware of a city's industrial or office park?
(Rank 1 through 7, with "1" being the most likely source of information and "7"
being the least likely.
Rank 1 through 7:
Networking (Word of Mouth)
Articles in trade journals
Articles in newspapers
Advertisements
Direct mall promotions
Special events (for example, golf
tournament)
Membership in an economic
development partnership of
professional organization •
6. When you contact a city regarding their industrial or office park, what
information is critical to you to have as soon as possible? What is "nice'
• to have but not necessary until later in the site selection process?
Check One:
ITEM IMMEDIATELY LATER IN
PROCESS
Land Availability
Site Map
With utilities shown
With to_pogrhy
Re ional Location Map .....
Aerial Photo
Labor Market Data
Financial Incentives
Utility Information, General ..__._._.._
Sewer capacity
Water capacity
F _ Electric capacity
Transportation Information, General _, W
Rail
River/Barge
Highway
• Airport...........
Price of Land
Soils Information
Zoning!Land Use
Demographics ..�... .._.....__ , .._.. ._.._._......_...�.._.._..._..
Thank you very much for taking the time to respond to this survey. Please return
to:
Michelle Wolfe
Assistant City Administrator
City of Cottage Grove
7516 — 80th Street South
Cottage Grove, MN 55016
Fax: (651) 458-2897
Phone: (651) 458-2882
•
'-.\GRUIP ,PER ECQN.E.coFtf`I?.i•s Del-ell meat\ arketir'sg'SiTE SELECTiON SURVEY cof.:
EXHIBIT G
QUESTION#1
If you are looking for a site ire,an industrial or office park{fair your company or representing a client),what factors are •
im„rant to you? (Rate each factor on o scale of 1 to 5,with"5"being"most irn;onant!cr cal'and
being not important at air.)
SURVEY RESPONDENT:
1 2 3 4 5 6 7 8 9 10i AVG
Price of Land 5 4 5 3 3 4 5 5 4 4 4.22
Location 4 4 5 5 5 4 5 4 4 5 ,may
Labor Availaabiiity 4 4 4 5 4.5 1 4 5 4 5 3.94
Proximity to Rain 2 2 2 2 2 1 * 2 2 1 1.6'
Size of Community 3 2 2 3 1 1 3 2 2 4 2.11
Size of Industrial Park 3 2 1 2 1 1 3 3 3 2 2.11
Highway or interstate access 4 4 3 5 5 3 4 4 4 5 4,00
Close to College/University 3 3 1 3 2 3 2 2 3 4 2..44
Proximity to Airport 3 3 2 3 2 3 3 3 3 4 2.78
Quality of Existing Buiidi ,gs in Industrial Park 4 4 4 4 3 3 3 3 3 4 3.44
Quality of Proposal Submitted 2 4 4 4 1 3 4 4 4 4 3.33
Development Process in Community 4 4 5 3 3 3 4 4 4 4 3.78
Appropriate Zoning!Land Use 5 3 5 5 4 4 5 5 4 4 4 44
Pioxlri>ifl to Fire and Medical Services 4 2 2 4 1 1 3 3 2 4 2.44
Responsiveness of City(Timeliness, interest) 5 4 3 4 3 3 5 5 4 5 4.00
Financial• Incentives 4 3 3 2 3 4 4 5 4 4 3.56
Depends on client 3 4 3 5 5 5 5 5 3 3 r?i
Proximity to other related business//potenliai customers 1 3 2 3 5 3 3 4 4 4 3.11
Other:available water,sewer arid other uti?ties 4 4.00
LISTED IN DESCENDING ORDER: SURVEY RESPONDENT:
1 2 3 4 5 7 8 9 10 A G
Location 4 4 5 5 5 4 5 4 4 5 4.50
•
Appropriate Zoning/Land Use 5 3 5 5 4 4 5 5 4 4 4,40
Price of Land 5 4 5 3 3 4 5 5 4 4 4.20
Hivhway or interstate access 4 4 3 5 5 3 4 4 4 5 4,10
Responsiveness cf City(T imeiines5. Interest) 5 4 3 4 3 3 5 5 4 5 4.10
Labor Availability 4 4 4 5 4.5 1 4 5 4 5 4.05
Depends on client 3 4 3 5 3 5 5 5 3 3.80
Development Process in Community 4 4 5 3 3 3 4 4 4 4 3.80
Financial Incentives 4 3 3 2 3 4 4 5 4 4 3.60
Quality of Existing Buiidins in industrial Park 4 4 4 4 3 3 3 3 3 4 3.50
O uality f Proposal Submitted 2 4 4 4 1 3 4 4 4 4 3.40
Proximity to other related busiriessfpotential customers 1 3 2 3 5 3 3 4 4 4 3,20
Proximity to Airport 3 3 2 3 2 3 3 3 3 4 2.90
Close to Coliece:University 3 3 1 3 2 3 2 2 3 4 2.50
Proximity to Fire and Medical Services 4 2 2 4 1 1 3 3 2 4 2.60
Size of Community 3 2 2 3 1 1 3 2 2 4 2.30
Size of Industrial Park. 3 2 1 2 1 1 3 3 3 2 2.10
Proximity to Rail 2 2 2 2 2 1 2 2 1 1.60
Other.available water,sewer and other uti!tie.s 4 4.00
CONCLUSION. Focus on the items rated above 3.5(bold print). A new marketing theme"Closer than you think
makes sense given that"Location"is rated highest in importance. Since"Price of Land"and"Highway access"are
rated highly,we should continue to emphasize our low price aro location in marketing materials. Responsiveness is
rated highly:we must continue to improve in this area. Emphasizing our labor availablitty(community survey results)
and our administrative approval process also is wise,given that these were seen as important. Having clear standards
for financial incentives is also important.
•
QUESTION#2
2. What steps do you take(or recommend to a client)when beginning a site search" (Check ail that apply):
SURVEY RESPONDENT:
1 2 3 4 5 6 7 8 9 1Ul TOTAL!
Hire a broker or Consultant x x x x x x x x 8
Contact a city directly x x x x x x 6
Contact an Economic Development Organization x x x x x x x x 8
Consult real estate and business periodicals x 1
Contact the State Department of Trade x x x x x 5
and Economic Development
Search on the Internet x x 2
Check Newspaper Ads CI
"Networking" x x x x x x x
Prepare a formal Request for Proposals x x x x x 5
Other: (II Develop an internal project team x
(2) Do an OCR database search x t
IN DESCENDING ORDER: SURVEY RESPONDENT:
1 2 3 4 5L
_
8 9 1; TOTAL
III Hire a broker or Consultant x x x x x x x x 8
ContactEconomic co omit Dev Io�3ment Or anlz at:ir x x x x x x x x 8
"Networking' , x x x x x x x 7
Contact a city directly x x x x x x 8
Contact the State Department of Trade x x x x x 5
and Economic Development
Prepare a formal Request for Proposals x x x x x 5
Search on the Internet x x 2
Consult real estate and business periodicals x 1
Other: (1)Develop an internal project team x 1
(2) Do an OCR database search x 1
Check Newspaper Ads ;
CONCLUSION: The top three answers indicate that we should continue to market the industrial Park to brokers,
and maintain a strong relationship with MEDP and possibly other professional organizations such as EDAM.
In addition,City staff should look nto new"networking'.opportunities.
S
i
QUESTION 3
If you checked "consult real estate and business periodicals" under question #2, •
please list any you would consult:
RESPONSE
None 9 -----
MNREJ 1
City Business 1
Note: Only one person responded to this question, and he listed
Two periodicals.
CONCLUSION: Very few customers consult a publication when it is time to do a site
search: however, as seen in later questions, this is still an area that can be pursued for
product (City) name awareness.
QUESTION 4
Do you regularly read certain publications to stay abreast of commercial real
estate and economic development activity?
YES 10 NO 0
If "YES", which ones do you read at least occasionally? (Please list) •
RESPONSE
Minnesota Real Estate Journal _._ 1
City Business 9
Pioneer PressLocal and Business Sections) 3
Midwest Real Estate News 2
Urban Land Institute Monthly magazine 1
Commercial Property News
1
F.
Loop Net on line newsletter
Star Tribune _ 1
i Twin Cities Business Monthly 3
Site Selection3
Plant sites 1 _...
Minnesota Industrial Properties _ 1 1
Corporate Report Minnesota ---__ 1
Minnesota Economic Trends 1
CUED Newsletters1
Area Development 1
Business Facilities 1
CONCLUSION: Our advertising plan, with the goal of increasing awareness, shou d
expand from just the MNREJ to include City Business. Press Releases in the Pioneer •
Press and STAR Tribune would also be advisable.
F:GRO PS PER_ECON:Economic L?eveiopmentWa? etiny Survey.ds c
• QUESTION 5
5. How are you most likely to become aware of a city's Industrie or office park'?
(Rank 1 through 7,with "1"being the most likely source of information and "7" being the least likely.
SURVEY RESPONDENT:
1 2 3 4 5 6 7 8 9 10 TOTAL.
Networking (Word of Mouth) 2 1 7 1 3 5 2 3 2 1 27
Articles in trade journals 4 7 4 5 1 6 4 6 4 5 46
Articles in newspapers 5 5 4 2 2 7 6 2 6 6 45
Advertisements 6 6 4 6 4 1 5 4 7 4 47
Direct mail promotions 1 2 4 4 5 4 3 5 3 3 34
Special.events_ for example. golf tournament).„ 7 3 6 7 7 3 7 7 , 5 7 ..
Membership in an economic development 3 4 4 3 7 2 8 1 1 2 35
partnership of professional organization
Write-in. Calling the city directly when I have a 1 1
client in need of a site.
ASCENDING ORDER: SURVEY RESPONDENT:
1 2 3 4 5 6 7 8 9 101 i OTA .
Networking (Word of Mouth) 2 1 7 1 3 5 2 3 2 1 2 7
Direct mail promotions 1 2 4 4 5 4 3 5 3 3 34
*Membership in an economic development 3 4 4 3 7 2 8 1 1 2 35
partnership of professional organization
Articles in newspapers 5 5 4 2 2 7 6 2 6 6 45
Articles in trade journals 4 7 4 5 1 6 4 6 4 5 46
Advertisements 6 6 4 6 4 1 5 4 7 4 47
Special events (for example, golf tournament) 7 3 6 7 7 3 7 7 5 7 59
Write-in: Calling the city directly when I have a 1 1
client in need of a site.
Networking is the number one way that respodnents felt they would become aware of a city's industrial park.
This indicates that in our marketing efforts: we should focus on the"personal selling"aspects, and relationship
building It also appears that direct mail promotions are effective, so those should increase. (Some new
ideas are included in the 2000 plan,) Evaluation will be key for setting up the 2001 advertising plan; survey
results seem to indicate that advertisements are not as likely to yield the awareness results as some of the
other items listed. Before spending resources on advertising next year, we will need to evaluate the
effectiveness of the 2000 plan. (It is interesting to note that while indicating they regularly read certain
periodicals, they didn't rate that highly for this question. Therefore, it still may be worth continuing some
advertising for"name recognition"and awareness )
•
1
QUESTION 6 •
When you contact a city regarding their industrial or office park, what information
is critical to you to have as soon as possible? What is `nice" to have but not
necessary until later in the site selection process?
Number of responses indicated in each box.
Check One:
ITEM IMMEDIATELY LATER IN
PROCESS
Land Availability 9 0
Site Map 8 0
With utilities shown 3 6
With topography 2 7
Regional Location Map 8 1
Aerial Photo 7 2
Labor Market Data 3 6 .
Financial Incentives 1 6 3
Utility Information, General . 3 3
Sewer capacity 2 7
Water capacity 2 7
Electric capacity 2 7 •
Transportation Information, General 7 ... 2 ____.._.._.
Rail 4 5
RiverfBarge 3 6
Highway _._ _._ 9 0
Airport 4 5
Price of Land 9 0
Soils Information - 2 7
Zoning/Land Use _._..... ..._. ._ 8 1
Demographics _ _. _.__...__._ ._... l 3 6
CONCLUSION: Priority should be given to making sure the items highlighted
under "Immediately" are included in our marketing materials. Fact sheets should
be developed on the items listed as "Later in Process"; they can be distributed as
requested by a client.
F\GR t PS':PER_ECON:Eaanon<c Deeicipmentiir,arkezing's.>RVE Y q 6.coc •
1
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 01/06/00
Re: Livable Communities Grant Item 4F
While I have not yet received official documentation, I have been informed that the
Metropolitan Council approved the City's application for a $150,000 Livable
Communities grant. The grant requires a 1:1 City match, but it is not yet clear what can
be used as a match. Staff will be working with the Met Council to determine match
options in the near future.
The grant will fund planning studies that will focus on (1) transit needs for the City and
(2) possible redevelopment options for the Langdon area. The goals of the grant were
outlined in the grant application that was previously forwarded to you. As this project
progresses, I will keep you informed.
•
\\CG FS1\SYS\GROUPS\PER ECON\MAVV\EDA Memos\Jan 00 Livable Comm.doc
• City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator Ikt#1-)
Date: 01/06/00
Re: Zoning Text Amendment Item 4G
At the regular meeting of December 15, 1999, the City Council approved the
recommendation of the Planning Commission to make certain amendments to the
zoning ordinance. Attached is a copy of the changes approved by the City Council.
Attachment
10
\\CG_FS1\SYS\GROUPS\PER_ECON\MA\MEDA Memos\Jan 00 Zoning Amend.doc
EXHIBIT A
ORDINANCE NO. XXX
•
AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA
AMENDING CHAPTER 28; ARTICLE VI, DISTRICT PROVISIONS; SECTION 28-
63(b)(2), LOW CAPACITY SANITARY SEWER AND SECTION 28-65, INDUSTRIAL
DISTRICT PERMITTED ACCESSORY USES
The City Council of the City of Cottage Grove, Washington County, Minnesota, does ordain as
follows:
SECTION 1. AMENDMENT. The Code of the City of Cottage Grove, County of
Washington, State of Minnesota, shall be amended by amending Chapter 28, Article VI, District
Provisions; Section 28-63(b)(1)to read as follows:
Chapter 28
Article VI. District Provisions
Section 28-63(b)(1)Low Capacity Sanitary Sewer Discharge
)Low capacity sanitary sewer discharge 91-1" 9-2" 9-3" 9-4"
Agricultural- excluding greenhouses P P P P •
Agricultural implement sales;service,and storage(inside a C C
bedding P )
Elearo Magnetic Communication Facilities(Ord No.635) C C C C
Appliance repair P P P
Archery Range(inside&bg c pas) P P P P
Armories and Caaventian Halls C C
Assembly and packaging(inside*building C P P
Auction Hal C C C
•
Auto and Painting(inside ag Ce, al
inacture) P P
Ordinance 99-XXX
Page 2
. Low capacity sanitary sewer discharge "I-1" "1-2" "1-3" "1-4"
Automobile Repair(inside a g _ l P P
)
Bakey P P
Boat,Trailer,Marine Sales(inside ag SeP P
Broadcasting Studio(television and radio) P P P
Builder's Supply Yards and Lumberyards(having exterior C C
storage displays)
Bulk Materials Storage ..fie) C
Ceramic Products P
Ceampest -Aperutiene G G
IIIGeawainsr=s•&ftirwant-iStspage-lkiwi*fispkw) P
Credit CardBank Processing P P
Essential Services(Public Utilities) P P P P
Furniture Repair,Refinishing Shop and Sales P P P
Glue Manufacturing P
Greenhouses(Commercial Production) P P
Greenhouses(inside arb ng , r iaai ) C P
Gun Clubs(inside a kng ) P P P
Ice,Cold Storage P P
Machine Shops P P
IIIManufacture of Electronic Instruments P P P
Metal Polishing and Plating P P
Ordinance 99-XXX
Page 3
Low capacity sanitary sewer discharge "1-1" "1-2" "1-3" "1-4" •
Mill Working P P
Mining and Excavation P
s s
Municipal Buildings(Storage Buildings) P P P
Municipal Buildings(Office/Public Safety Buildings) P P P P
Nature Centers(Private or Public) P
Nursery&Garden Supplies(exteaior or enclosed sales) P C P C
Parcel Delivery Services P P
Plumbing,Electrical and Carpenter shops P P S
Primarily gas-fired power plant/cogeneration power plant C
Public Utility JndRllations P P P P
Public Enclosed Rental Storage or Garages C C P
Publishing Plants(printing) P P
Recycling operations other than reduction or processing of C C
refuse,trash,and garbage
Research,Testing and Scientific Laboratories P P
Sign Shops(outside storage and display) C
Sign Shops(inside a ildiag ) P P P
Stone Cutting(Inside of a ) P P •
Storage of Crude Oil,Refined Oil,Alcohol and Other C
Liquids(Inside of a-iding Vie)
Ordinance 99-XXX
Page 4
Low capacity sanitary sewer discharge "1-1" "1-2" "1-3" "1-4"
Truck,Service and Maintenance Station(inside ag C C
_iP )
Utility Stations and Sub-Stations P P P P
Veterinarian Hospitals/Clinics(inside Bing k P P
*H u ste)
Warehouses and Enclosed Storage P P P
Welding Shop P P
Well Drilling Service P
SECTION 2. AMENDMENT. The Code of the City of Cottage Grove, County of
Washington, State of Minnesota, shall be amended by amending Chapter 28; Article VI, District
Provisions; Section 28-65 to read as follows:
• Section 28-65(h). Outdoor parking of trucks and vehicles incidental to the principal use.
SECTION 3. EFFECTIVE DATE. This ordinance shall be in full force and effect
from and after its adoption and publication according to law.
Passed this day of , 1999.
John D. Denzer, Mayor
Attest:
Caron M. Stransky, City Clerk
•