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HomeMy WebLinkAbout1999.05.11 PACKET Secretary S CITY OF COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY AGENDA TUESDAY, MAY 11 , 1999 7:30 A.M. 1. Call to Order 2. Roll Call 3. Approval of April 13, 1999 Minutes 4. Business Items A. Project Updates B. 1998 EDA Annual Report C. Fiscal Impact Analysis Update D. Lakeville Fiscal Analysis Excerpts E. 3M Survey F. Genesis Business Center G. MEDP 1998 Annual Report H. Renewal Grand Opening—June 1 from 3:00 to 4:30 1111 5. Miscellaneous Business Items 6. Adjourn Next Meeting Date:June 8 \\CG_FS1\SYS\GROUPS\PER_ECON\EDA Agenda.doc City of Cottage Grove • Memo To: Economic Development Authority Members From: Michelle A. Wolfe, Assistant City Administrator Aiktil) Date: 05/07/99 Re: Project Updates Item 4A METRO EAST We did not receive any Metro East RFP's in April. However, We did receive a progress report relating to three RFP's we had previously responded to. One of these projects • had been close to an agreement with another city, and then it fell apart. It appears we may be in consideration again, and we have sent in some additional information about the industrial park. I can update you about this project at the EDA meeting. TELEMARKETING FIRM City Administrator Schroeder and I met with representatives of a telemarketing firm about possible relocation or expansion to Cottage Grove. This could involve leasing space or possibly (but unlikely) new construction. I forwarded information to this company regarding programs available from DTED, as well as demographic information and employment patterns about Cottage Grove. I have not heard back from the company as of this writing. This still appears to be a long shot. HOTEURESTAURANT/OFFICE Discussions continue between the hotel developer and the owner of the site. We can provide more information at the meeting. OFFICE PARK Last month we had an inquiry regarding an office/warehouse project. They were • referred to Craig Lien. I followed-up with the broker this month. Evidently, they originally decided to focus on a western suburb location, but were unable to find anything. They had some renewed interest in Cottage Grove, and have been out to see F:\GROUPS\PER_ECON\MA\MEDA Memos\May 99 Proj Update.doc the industrial park. It appears that some factors outside our control will prevent them from locating here, even though they liked the Industrial Park. 4111 WAREHOUSE PROJECT Discussions continue on the warehouse project for the Industrial Park. Welsh Company has provided a rendering of the potential project. Currently proposed is a first phase 150,000 square foot warehouse on property to the west of Renewal, with an intent for a future similarly sized project if this one is successful. The concept is non-owned warehousing several vendors. FACTORY OUTLET CENTER Staff responded to a request for information regarding the possible location of factory outlet stores in our community. They have a 17-point site criteria evaluation that we completed and returned. We have not heard further as of this writing. POST OFFICE The project continues to move forward, but at a pace slower than originally anticipated. The current issues are aesthetic and drainage in nature. None, however, appear insurmountable. i GROVE PLAZA Staff met with EBL&S on April 30. On that date, they informed the city that they have a tentative agreement for a major new tenant. The agreement is to be finalized within a week or two. There is concern about the capital cost of the structure. There will be another meeting on May 12. MISCELLANEOUS We will have verbal reports on some other projects at the May 11, meeting. There have been several inquiries regarding possible retail/commercial projects. We have been informed that Blockbuster Video renewed their lease for one more year, but California Pizza and Pasta is leaving. • F:\GROUPS\PER_ECON\MAWEDA Memos\May 99 Proj Update.doc City of Cottage Grove Memo To: Economic Development Authority Members From: Steve Barrett, Management Analyst Date: May 7, 1999 Re: EDA ANNNUAL REPORT Item 4B Graphic Design, Inc. has given us a revised quote for the report. 1500 copies would cost about $3402. Thus each copy would cost $2.27. The report's look has been modified since last month. First, the cover has been changed to include pictures. Second, 3M is emphasized on the inside. Finally, • the pictures on the inside are given a "3-D" graphic. A copy of the modified report is available for your review. Two steps remain before the report can be distributed: 1. I need to photograph the pictures for the report. If not done over the weekend preceding this meeting, the pictures will be taken as soon as possible. 2. Once the pictures are taken, the printer will put the report together. Total printing time is estimated to be eight to ten working days. With this in mind, I anticipate beginning distribution by the end of this month. • F:\GROUPS\PER_ECON\Steve\Econ.Dev\EDA Memo-Annual Report.doc City of Cottage Grove • Memo To: Economic Authority Members From: Michelle A. Wolfe, Assistant City Administrator \,i Pi Date: 05/07/99 Re: Fiscal Impact Analysis Update Item 4C Staff recently received a draft of the Grey Cloud Island study. Work continues on the full-city study. Staff will be able to provide you with a verbal update at the EDA meeting. • • G:\MAIMEDA Memos\Apr 99 Genesis.doc City of Cottage Grove • Memo To: Economic Authority Members From: Michelle A. Wolfe, Assistant City Administrator (i/Nw ) Date: 05/07/99 Re: 3M Survey Item 4E Previously, we shared results of the 3M survey. Recently, there was a meeting to review results and determine questions for a follow-up survey. City Administrator Schroeder and Fred Luden can provide a verbal update at the EDA meeting. S • G:\MAIMEDA Memos\Apr 99 Genesis.doc City of Cottage Grove Memo To: Economic Authority Members From: Michelle A. Wolfe, Assistant City Administrator Date: 05/07/99 Re: Visit to Genesis Business Center Site Item 4F City Administrator Ryan Schroeder and I met with Harlan Jacobs of Genesis Business Center. At the April EDA meeting, we discussed the possibility of visiting the Columbia Heights incubator site. Mr. Jacobs has provided me with the following possible dates and times for such a visit: • May 19 2:00 PM May 20 10:00 AM May 20 2:00 PM May 26 10:30 AM At the EDA meeting we will decide who is interested in attending the site visit, and which dates and times will work best. • F:\GROUPS\PER_ECON\MAW\EDA Memos\May 99 Genesis.doc City of Cottage Grove Memo To: Economic Authority Members From: Michelle A. Wolfe, Assistant City Administrator Date: 05/07/99 Re: Metro East Development Partnership 1998 Annual Report Item 4G I have included a copy of the 1998 MEDP Annual Report for your review. In addition, we have invited David Piggott, Executive Director, to attend an EDA meeting and talk about Metro East and its recent activities. As of this writing, it is • not certain whether he will be able to attend the May 11 meeting, or whether we will schedule his attendance for the June 8 meeting. • F:\GROUPS\PER_ECON\MAW\EDA Memos\May 99 MEDP.doc 1998 ANNUAL REPORT - era- METRO EAST DEVELOPMENT PARTNERSHIP A partnership with over 100 public and private sector members committed vl ! 1 'Report From the Co-Chairs 1999 Executive Committee To The Membership... Co-Chair,Private Co-Chair,Public Craig Bollum Duan Zaun n 1998, the Executive Committee of the Metro East Senior Vice President Mayor Development Partnership(MEDP)engaged in a strategic US Bank City of Lakeville planning process. The purpose of this exercise was to examine ways in which MEDP could better serve the com- munity, its clients, and its investors. Operating under the Vice-Chair,Private Vice-Chair,Public premise that MEDP would maintain its regional focus, its Jack Piepel Jay Kimble multi-disciplinary approach and its commitment to measur- VP,Operations Engineering Mayor able results, the committee was able to draft a three year Andersen Corporation City of Stillwater strategic plan that will help guide MEDP from now through the year 2001. Treasurer Executive Director The plan calls for significant changes and improvements. In Jeffrey Ruehle David J. Piggott an industry where a 10% rate of success is standard, MEDP Vice President MEDP has set its sights much higher. By utilizing the skills and Norwest Bank resources of its broad investment base, MEDP hopes to Minnesota N.A. achieve a 25% successful closure rate with its prospects within three years. Additionally, MEDP will establish a "Rapid Response Team" so that it may respond to prospects . Susan Banovetz Tom Burt in a more efficient manner. Mayor City Administrator MEDP is expanding its commitment to its investors. We will City of Vadnais Heights City of Rosemount be calling on investors to assist us as we aid expanding businesses. MEDP's status as a public-private partnership Mark Beattie Norm Coleman means that it is able to draw on a wealth of expertise. From Manager,Corporate RE Mayor finance, construction and real estate, to local, county or 3M City of Saint Paul regional government, MEDP is able to help a business go from concept to completion. We are also instituting an Tanya Bell Myra Peterson investor relations program so that investors will be more Managing Director Commissioner Dist.4 aware of our prospect activities and ways they can participate CB Richard Ellis,Inc. Washington County in the business attraction process. 1998 also saw MEDP expand its broad alliance with other Lee Bennett Ken Stabler economic development providers. MEDP has entered into a VP,Claim Division Manager,Econ. Dev. • strategic alliance with Twin Cities-Metro, a Certified Devel- The St.Paul Companies,Inc. Northern States Power Co opment Company. MEDP is also working with the Saint Paul Information Technology Council in an attempt to estab- LaDonna Boyd lish Minnesota's first industry cluster program. Economic Dev.Director In 1998, MEDP assisted several expanding businesses. Dakota Electric Association These projects ranged from helping a small computer com- pany lease 6,800 square feet,to helping a major manufacturer MEDP Staff through a successful site selection process that resulted in over $13 million in new capital investment. These projects Executive Director Business Development resulted in the creation or retention of over 2,000 quality David J.Piggott Specialist jobs. (651)265-2760 Lori A. Strand (651)265-2763 Using the new strategic plan to build upon these past suc- cesses, we believe the MEDP is well positioned to continue Director of Business Administrative Assistant its successful service to the community, its clients, and its Development Kathryn S.Price investors. (651)265-2762 (651)265-2761 Mayor Norm Coleman Tanya Bell 1998 Public Sector 1998 Private Sector Co-Chair Co-Chair FINANCIAL OVERVIEW • Preliminary Balance Sheet for Period Ending December 31, 1998 ASSETS CURRENT ASSETS Cash - General 123,827.62 Prepaid Expenses 10,654.70 Total Current Assets $134,482.32 Office Equipment , at cost 53,721.82 Less Accumulated Depreciation (34,602.55) Net Office Equipment $ 19,119.27 TOTAL ASSETS $153,601.59 LIABILITIES AND NET ASSETS CURRENT LIABILITIES • Accounts Payable 1,200.00 Accrued Expenses 5,156.12 Deferred Dues Revenue 45,750.00 Total Current Liabilities $ 52,106.12 NET ASSETS $101,495.47 TOTAL LIABILITIES AND NET ASSETS $153,601.59 1999 PRELIMINARY BUDGET MEDP In-Kind Contributors: Minnesota Technology REVENUE Northern States Power Company Memberships $329,000 Olsen,Thielen & Company, Ltd Interest 7,000 Saint Paul Area Chamber of Commerce Other Income 5,000 Saint Paul Pioneer Press In-kind Contributions 30,000 TOTAL $371.000 MEDP Affiliations: Advantage Minnesota EXPENSES BOMA - Saint Paul Personnel $204,000 Council of Urban Economic Development Operations 71,000 EDAM Administration 16,000 IDRC • Programs 40,000 Organization of Commercial Realtors Capital Expenditures 2,000 TC Web In-kind Contributions 30,000 Twin Cities-Metro TOTAL $363.000 Metro East Development Partnership GOAL SCHEDULE 0 MISSION The Metro East Development Partnership is a regional economic develop- ment organization whose mission is to stimulate the growth and diversification of the economic base in Dakota, Ramsey, and Washington counties. The Partnership works in conjunction with over 100 public and private entities. GOALS Success Measures: Success Measures: • Achieve capital investment of$65 million in new • Solicit 250 requests for assistance from expanding building construction. : . businesses. • Expand property tax revenues by $2.275 million. • Solicit 50 inquiries from out of state businesses. • Assist in the creation of at least 1,250 quality jobs. • Solicit 10 inquiries via the world wide web and • Successfully conclude 2 projects with companies other technological resources. new to Minnesota. • Coordinate an annual out of state marketing cam- • Achieve a 20% successful closure rate with paign utilizing the region's economic develop- prospects. ment professionals. • Success Measures: Success Measures: • Financing of 75%of projects will be bid by MEDP • Limit investor turnover to less than 5% (5 in- investor institutions. vestors). • Construction of 75%of all successful projects will • Convert 3 former clients into investors. be bid by MEDP investor construction companies. • Expand investor roster by 10 members. • Professional services on 75%of all successful pro- • Increase budget by 5%. jects will be bid by MEDP investor realtors,bro- kers,and other providers of professional services. • Refer at least 25 inquiries to our economic devel- opment partners. 1998 Program Highlights • Adopted Bylaws • Exhibited at Medical Diagnostics Trade Show • Produced an insert for Twin Cities Business Monthly • Partnered on Saint Paul Means Business brochure • Developed a strategic alliance with Twin Cities-Metro • Updated job descriptions and staff duties • Developing an information technology industry cluster program • Strengthened ties with Dakota County Economic Devel- • Metro East featured in Saint Paul Pioneer Press opment Partnership • Published Investors Directory • renewal by Andersen"'project voted Business Reten- • • Updated economic profile on website(www.medp.org) tion Project of the Year by the Economic Development • Created 1999-2001 Strategic Plan Association of Minnesota • Designed Investor Relations Program • Local partners ads featured in The Leasing Guide • Developing Metro East Development Foundation SCOREBOARD January 1 - December 21, 1998 • PROSPECT ACTIVITY Total Active Prospects 62 1998 Prospects 73 Metro Area Prospects 56 Out of State Prospects 16 Foreign Prospects 1 Site Tours 32 Files Closed 74 SITE LOCATION ASSISTANCE • Deals Completed 13 Capital Investment $49,009,000 Property Tax Revenue Increase $1,715,000 Total Jobs (Retained: 633,New: 1370) 2003 • MARKETING ACTIVITIES Ad Placements 6 Articles Placed 2 Trade Shows 1 p PARTNER PARTICIPATION Advanced Resources for Development- Bonestroo, Rosene, Anderlik & Associates Business Resource Center - CB Richard Ellis - Corporate Real Estate - City of Cottage Grove - City of Eagan - Kraus-Anderson Construction - McGough Construction - Oakdale Crossing - Minnesota Department of Trade and Economic Development - Minnesota Technology - Northern States Power Company Ramsey County - City of Roseville - City of Saint Paul - Saint Paul Port Authority City of Shoreview - US Bank - City of Vadnais Heights - Washington County Welsh Companies - City of White Bear Lake - White Bear Township • METRO EAST DEVELOPMENT PARTNERSHIP 1999 MEMBERSHIP LISTING III Local Government/Chambers/ City of Roseville Fortis Real Estate/Construction/ Development Corporations Development City of Saint Paul Land O'Lakes City of Arden Hills Adolfson&Peterson,Inc. Saint Paul Area Chamber of Lethert,Skwira,Schultz&Co. City of Burnsville Commerce Loucks&Associates,Inc. Airlake Industrial Park City of Cottage Grove Saint Paul BOMA AMCON Marathon Ashland Petroleum Bor-Son Construction Dakota County Saint Paul Port Authority Minnesota Life City of Shoreview Dakota County Partnership Northern States Power Co. CB Richard Ellis City of Stillwater Commercial Real Estate City of Eagan Olsen,Thielen&Co.Ltd. Services,Inc. City of Vadnais Heights City of Farmington Progressive Rail Corporate Real Estate,Inc. Washington County City of Forest Lake The St. Paul Companies,Inc. DLR Group City of West Saint Paul City of Hastings Saint Paul Pioneer Press Edina Realty, Inc. White Bear Township City of Lake Elmo US West Communications First Industrial Trust Realty, Inc. City of Woodbury City of Lakeville Finance Frauenshuh Companies City of Mahtomedi Corporate/Small Business Eastern Heights Bank Greystone Real Estate Group • City of Maplewood 3M Firstar Bank Griffin Companies City of Mounds view Advanced Resources for Heritage National Bank Kellison Company Development,Inc. City of New Brighton Liberty State Bank Kraus-Anderson Construction Co. Andersen Corporation City of North Saint Paul Midway National Bank McGough Construction Co.,Inc. Bonestroo,Rosene,Anderlik City of Oak Park Heights &Associates Norwest Bank Minnesota N.A. Oakdale Crossing City of Oakdale Briggs&Morgan Premier Bank Opus Corporation Progress Plus/Cities of Dakota Electric Association Signal Bank Ryan Construction of MN,Inc. South Saint Paul and Inver Grove Heights District Energy St.Paul Twin Cities-Metro Stahl Construction Company Ramsey County Doherty,Rumble&Butler US Bank Stiglich Construction City of Rosemount Ecolab Inc. Western Bank Tobin Real Estate Company Welsh Companies -- Wispark Corporation Metro East Development Partnership , 332 Minnesota Street,Suite N-205 Saint Paul MN 55101 Phone: (651)224-3278 Fax: (651)223-5484 Web Site: www.medp.org Email: meteast@medp.org City of Cottage Grove • Memo To: Economic Authority Members From: Michelle A. Wolfe, Assistant City Administrator kt\A) Date: 05/07/99 Re: Renewal Grand Opening Item 4H Please mark your calendars for June 2, 3:00 —4:30 p.m. The Renewal Grand Opening will take place on this date. Details and invitations will follow. • • F:\GROUPS\PER_ECON\MAWEDA Memos\May 99 Renewal.doc City of Cottage Grove • Memo To: Economic Authority Members From: Michelle A. Wolfe, Assistant City Administrator Mw Date: 05/07/99 Re: Lakeville Fiscal Analysis Study Item 4D At the March meeting, I provided a brief summary of the Lakeville fiscal analysis study. Per the request of the EDA, I have attached a few excerpts from the documents relating to this study. First is the Executive Summary of the "Lakeville Growth Study, A Fiscal Impact • Analysis." The study is dated August 14, 1991. After the study was completed, the city put together a task force. I have attached page 10 from "Growth Management Strategies for the City of Lakeville, Report and Recommendations from the Strategic Growth Management Task Force." This page lists the recommendations of the task force. This report is dated May 1992. Last, I have included a copy of the table of contents from the document entitled "Growth Management: Zoning and Subdivision Ordinance Amendments." This report, dated November 1993, listed the recommended zoning and subdivision ordinance changes which, in the long run, were the result of the findings of the study and the work of the task force. I will have the complete documents available if anyone would like to review them. IP F:\GROUPS\PER_ECON\MAWEDA Memos\May 99 Lakeville.doc I . I . • i . ITv OF LAKEVILLE l l GROWTH MANAGEMENT: I ZONING AND SUBDIVISION I ORDINANCE l l AMENDMENTS l0 I I I FINAL REPORT I NOVEMBER 1993 0 0 • -,,'.-...'"!t--.._,.--� " y , � . -� _ P V SED 10/27/9.3 - <t :, �- .7 t 11/2/931 l TABLE OF CONTENTS Page Background 1 Zoning Ordinance Amendments 2 Residential Lot Size and Setback Standards 2 Flexibility Provisions 8 Storm Drainage 11 Wetlands 11 Forestation 12 Slope Protection 13 Buffer Yards 14 Off-Street Parking Requirements 18 Future Building Expansions 20 Minimum Dwelling Unit Size Restrictions 21 Subdivision Ordinance Amendments 23 Platting Procedures 23 Premature Subdivisions 24 Subdivision Design: Irregular Lots/Yard Encroachments 26 • Minimum Lot Area 26 Major Street Buffers 27 Cul-De-Sacs 29 Easements 30 Protected Areas 31 Tree Preservation 32 Storm Drainage 33 Exhibit A - Zoning Ordinance Amendment Exhibit B - Subdivision Ordinance Amendment Exhibit C - Cul-De-Sac Lot Width Standard I 1 I i • EXECUTIVE SUMMARY In 1991, the State Legislature changed the tax laws which froze the City levy limits and decreased future property tax revenue. Lakeville needed to take action. On July 15, 1991, Lakeville's City Council passed an interim ordinance which temporarily prohibits approval of new residential plats and expansion or development of mobile(manufactured)home parks. This ordinance essentially provides the City with a time-out to develop a means of managing growth in a fiscally responsible manner. This fiscal impact study is the first action directed by the Council under the interim ordinance. The results of this study will be used as a base to develop impact fees. Fiscal impact analysis compares revenues and expenditures of various types of development to arrive at an overall net impact. There was little factual data on what residential developments actually contribute and cost the City's finances. In order to provide better fiscal impact data, a number of sites were selected to represent various housing types and market values. The revenues generated from property tax and intergovernmental aid are compared against expenditures on a per- erson,per-acre or per-unit basis, in order to arrive at a net fiscal impact. Additionally,we conducted a focus group with department heads to provide context and a broader perspective. Also,we analyzed current service standards and new tax laws in order to provide an information base for the next phase of the growth study. As probably expected,lower value homes tended to have a negative fiscal impact. The high value iohomes had positive fiscal impacts. Senior housing, when not constructed with tax increment financing,produces a net positive fiscal impact In general, the higher the density of housing the more the return, however, there are diminishing returns after a certain point in market value and density. Twinhomes, quads,townhomes and high value homes provide the best fiscal investment in housing. The scattered development puts an enormous strain on the City's operating and capital budgets and negatively impacts commercial areas trying to establish service areas. The 3600 lots that are in line for development will act to randomly fill in the northern part of the City. Future planning should be done in contiguous patterns. 1 Increasingly, City efforts will need to focus on redevelopment as the City ages. Mobile homes and areas with aged housing stock, in particular, are major concerns of the Council and City staff. This study finds that these areas have a significant negative fiscal impact. Remedies include focusing on crime prevention and property maintenance. Overall, the moratorium and subsequent growth studies emphasize prudent City management. The City needs to be involved with other municipalities,counties and school districts in order to coordinate growth in an environment of constrained resources. A Dakota County effort to conduct similar studies is highly encouraged, because many cities would benefit. • 1 RECOMMENDATIONS • The task force makes the following recommendations to the City Council to fulfill its charge. The recommendations are summarized under six headings: A. Resolving the anticipated sewer constraint B. Setting a higher priority for attracting new business and industrial development C. Expanding the role of the City in business development D. Guiding the amount, type, location, and quality of residential development E. Protecting environmental quality while accommodating growth F. Maintaining the City's management capacity to deliver services A. RESOLVING THE ANTICIPATED SEWER CONSTRAINT The current rate of new housing construction in Lakeville leads us to conclude that the City will run out of sewer capacity before the end of the decade unless there is action to either secure additional capacity or constrain access. The task force views this as a high priority issue and makes the following recommendations: 1. Immediate action to accelerate the year 2003 CIP plan of the Metropolitan Waste Control Commission to 1998, Negotiation with the MWCC would focus on securing additional treatment capacity at the Empire Mae ahead of schedule. In the interim, and during these negotiations, we recommend that the City develop other strategies to cope with various contingencies: 2. Pursue opportunities for Lakeville to receive additional capacity from the Empire Plant, An opportunity may exist for unused sewer capacity in the service area to be reallocated on an interim basis. 3. Adopt policies and mechanisms to guide new growth into infill areas where infrastructure is in place And to fit with the school districts' facility plans to provide additional school capacity, The five-year lot inventory under the current moratorium provides an opportunity to use existing and planned public infrastructure efficiently and still meet market demands. We are concerned that the City not put itself at risk by permitting development and then not being in a position to provide services. Allocating priority for sewer capacity to existing preliminary platted areas minimizes that risk. 10 •