HomeMy WebLinkAbout1999.08.10 PACKET •
CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUTHORITY
AGENDA
AUGUST 10, 1999
7:30 A.M.
1. Call to Order
2. Roll Call
3. Approval of July 13, 1999 Minutes
4. Business Items
a) Project Updates
b) Recommendation for New EDA Member
c) Proposed 2000 EDA and Economic Development Fund
Budgets
d) Annual Golf Outing (1999 and 2000).
e) 3M Cottage Grove Survey Update
f) Marketing/Advertising Update
g) Economic Development Section of the Comprehensive Plan
• 5. Miscellaneous Business Items
6. Adjourn
F:\USERS\NBELSCAM\Documents in Progress\EDA Agenda-Aug 10.doc
• City of Cottage Grove
S
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator(�.1
Date: 08/05/99
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Re: Project Updates Item 4A
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We responded to a Request for Proposals in July, which involved a large light
manufacturing/distribution facility (Fortune 100 company). The City was selected for the
• "short list", and company representatives visited that site on July 22. There has been
no further feedback since the site visit. However, we were informed after responding to
the request that they were also interested in rail access, which we may have difficulty
accommodating.
In addition, we responded to a second request in July, for a light manufacturing
company. We have not received any additional information about this project since
submitting our proposal.
In late June, we had a site visit with a metal galvanizing company. At this time, we are
still awaiting further information as to whether we remain in consideration. We have
exchanged letters with the consultant, and indicated our continued interest in the
project.
Today we received a new Request for Proposal for retail and bulk distribution. We are
in the process of determining our ability to respond favorable to this request.
(Specifically, determining is we have any sites that meet the needs of the company.)
We will try to get additional information on all of these projects prior to next week's
meeting.
HOTEURESTAURANT/OFFICE
There have been some discussions between City and School District representatives.
The result is that the developer and City Administrator will be meeting with the School
Board on August 26. —
\\CG_FS1\SYS\GROUPS\PER_ECON\MAw\EDA Memos\Aug 99 Proj Update.doc
POST OFFICE •
Staff anticipates the plat approval will be on the planning commission agenda within the
next two months. Purchase of a small amount of additional land is anticipated.
GROVE PLAZA
Staff met with KKE Architects and attorney Peter Coyle on July 7. We can provide an
update at the meeting. The developer has not been in further contact with us since our
last meeting. As of this writing, they have not yet forwarded requested information to
the City's attorney. However, it is possible that they are continuing to analyze some
new ideas that were presented at the July 7 meeting.
OFFICE/WAREHOUSE PROJECT
A site plan has been submitted to the Planning Department for review. The plan shows
phase one construction of 44,000 s.f. Community Development is reviewing the site
plan.
DTED REQUEST FOR INFORMATON
In July we responded to a request for information issued by DTED. This was on behalf
of a food processing company looking for an existing facility to purchase or land on •
which to build a new facility. In follow-up discussions with DTED, I learned that the
company is focusing on responses that included an existing facility. If those do not
meet their needs, they will then look at vacant land to build a new facility. Therefore, I
think this is a long shot.
MISCELLANEOUS
• Contacted various companies after reading in publications that they were looking to
expand or move.
• Responded to a request for information from a private economic development firm
representing a client interested in locating in this region.
• We responded to several inquiries for trucking terminals. In responding, we ask for
information regarding size and type of building, market value, and lot coverage. In
all cases they have not provided us with such information, which we have indicated
we need to know in order to determine whether or not it is a viable project.
• Responded to inquiries from a gentleman interested in opening a coffee shop in
Cottage Grove.
• The Planning department continues to work with developers interested in the vacant
•
property next to Menards.
\\CG_FS1\SYS\GROUPS\PER_ECON\MA\MEDA Memos\Aug 99 Proj Update.doc
City of Cottage Grove
Memo
To: Economic Development Authority Members I i '' '
From: Michelle A. Wolfe, Assistant City Administrator
Date: 08/05/99
Re: Recommendation of New EDA Member Item 4B
I am planning to have an item on the City Council's agenda for August 11,
recommending the appointment of Shannon Green to the vacant seat on the EDA. I am
waiting for resume/bio information from Ms. Green in order to finish the agenda item.
Ms. Green is the Human Resources Director for Renewal By Andersen. It is anticipated
• that she will bring valuable insight to the EDA in the area of the labor market and
specifically the labor pool for Cottage Grove companies.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\Aug 99 New Member.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator;
Date: 08/05/99
Re: Proposed 2000 EDA and Economic Development Fund Budget
Item 4C
Per direction provided at the last EDA meeting, significant changes were made to these
proposed budgets. In the EDF budget, the amount of staff time allocated was
increased. The City Administrator was increased from 10% to 20%, and the Assistant
Administrator from 25% to 30%. We also allocated some secretarial time to the budget.
Additional funds were put into the professional service line item (our expenditures have
varied in past years from $18,000 to $5,000.) An additional $3,000 was put into the
advertising line item, and an additional $1,000 in special events. The net result is that
the proposed 2000 budget shows a slight decrease of$3,300. The decrease is due to
replacing some higher end salary costs with administrative positions through the
reorganization of the Administration Department. The budget presented to you last
month showed a decrease of$33,600.
The EDA budget is showing a $700 decrease, for a total budget of $44,200. In 1996,
actual expenditures totaled $14,307, in 1997 $14,901, and in 1998, 28,515. Therefore,
we believe we are fully funded for the expected level of activity and beyond.
City Council will review the proposed budget on August 5
•
G:\MAw\EDA Memos\Aug 99 Budget.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 08/05/99
Re: EDA Golf Tournament Item 4D
Attached is a memorandum from Management Analyst Dan King updating you on the
status of the golf outing. In addition, we have ordered the hats and should have a
sample in time for the EDA meeting. We are anticipating making some phone calls
during the coming week to encourage additional participation.
410
It would be helpful if, at the meeting, you can indicate whether you plan to golf in the
event, attend the dinner, one of the two, or neither.
Believe it or not, we actually need to consider planning for the 2000 event. Golf
Manager Bruce Anderson informed me that the golf course expansion is creating
additional interest in River Oaks, and bookings for tournaments are starting even
sooner. If we wish to have another golf event next year, we should probably decide
upon a date and have it set aside for the EDA. I would be interested in your thoughts at
the meeting.
Attachments
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•
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\Aug 99 Golf.doc
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City of Cottage Grove •
V
Memo
To: Michelle Wolfe
From: Dan King
Date: 08/05/99
Re: EDA Golf Outing
At three weeks before the Golf Outing, we have a total of 27 invitees that have •
responded. This does not include City staff, City Council or EDA members. Of
those, Krause-Andersen and NSP have agreed to sponsor a hole. We are still
waiting to hear from Welsh Realty, in regards to participating and sponsoring a
hole.
Catering by Joyce will cater the event, and the menu for this is attached.
Prizes will be given for first place team, (gift certificates for free rounds of golf);
and longest putt, longest drive, closest to pin, and closest to the middle of the
fairway (gift certificates for $$). We also have 16 umbrellas, 10 towels, 29 shirts,
and 26 sleeves of golf balls for misc. prizes.
Additionally, we also have been approved for "Hole in one" insurance, which
would be $319.00 to against the winning of a $20,000 vehicle; as well as a big
Bertha driver, Bose wave radio, and a Seiko watch.
O 0-5
uPNaI
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F:\GROUPS\PER_ECON\Dan\Memo Template.doc
July 14 1999
• Dear Dan
Below you will find 2 menus that I hope you will like.
MENU I
1/2 # hamburger on bun
Brats on buns
Taco salad
Mexican beans
Creamy cole slaw
Potato salad
Condiments
Brownies
Lemon bars
Beverages
The cost is $12.00 per person
MENU II
Broasted chicken
Barbequed ribs
Creamy cole slaw
Cauliflower, broccoli and bacon salad
Mexican beans
Au gratin potatoes
Bread
Beverages
Marble cake with chocolate frosting
The cost will be $12.50 per person
You may add or change whatever you wish.
Thank you
Catering by Joyce
459-9956
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City of Cottage Grove
•
Memo
To: Economic Development Authority Members I ���
From: Michelle A. Wolfe, Assistant City Administrator I�� v` f
Date: 08/05/99
Re: 3M Cottage Grove Survey Item 4E
On July 20, Dr. Bill Morris presented the results of the most recent community survey
conducted by 3M Cottage Grove. This follow-up survey sought to probe more deeply
some of the responses received during the 1998 survey.
Some items of interest to the EDA are summarized below:
• • When asked what the most serious issue is facing Cottage Grove, the second most
common response was "lack of retail/entertainment".
• Sixty percent (60%) of those responding indicated that they would accept a similar
job in Cottage Grove, if one were available.
• When asked how often they leave the City of Cottage Grove to eat dinner at a sit-
down restaurant, 35% said 3-5 times per month, 30% said 1-2 times, 17% said 6-
10 times, and 13% said 10+ times.
• When asked to describe what is meant by a "high quality" restaurant, 32% stated a
sports pub such as Champps, TGI Fridays, or Applebees. Anther 18% responded
a steakhouse, and 16% Italian (Ciatti's/Olive Garden).
• In response to the question "What do you consider to be your principal retail
shopping location", 37% responded Target, 23% Tamarack, 10% Valley Creek, with
the rest split between a variety of other locations.
• When asked what percent of retail shopping dollars per month were spent in
businesses located in Cottage Grove (excluding gasoline and food), 34% said less
than 10%, 32% said 10-25%, and 17% responded 26-50%.
I will have copies of the pie charts available for you to look at during the EDA meeting.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\Aug 99 Survey.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator(114LIth
Date: 08/05/99
Re: Marketing/Advertising Update Item 4F
Last month, I provided you with a great deal of information staff had gathered regarding
advertising opportunities. It is my hope to develop a marketing plan for 2000, which
includes a re-assessment of how we spend our advertising dollars. I am re-sending the
• information that was included last month for your review. We were not able to spend
much time on it at the last meeting because we ran out of time. If you like, we have
samples of each of the publications if you wish to see them.
As far as 1999 advertising, we have tried a few alternatives in the past month or so. We
have some available dollars due to dropping an on-line service we didn't feel was very
productive. Therefore, we purchased an ad in an upcoming Metro East supplement in
the Minnesota Real Estate Journal, using the cover of the Annual Report as the
background for the ad. We used the same ad in the August issue of Minnesota
Business and Opportunities. We were able to get an ad that would usually run about
$900 for $500. I will bring the issue to show you the result. It turned out quite nice. We
will now be trying to monitor if we receive any feedback from these ads. (All those who
respond to inquiries have been directed to ask how the caller learned about our City.)
Attachments
•
F:\GROUPS\PER_ECON\MAW\EDA Memos\Aug 99 Marketing.doc
We have been evaluating the advertising plan. Currently, 13 ads are placed with the •
Minnesota Real Estate Journal (works out to basically one per month). In addition, we
run an ad in the 4 Leasing Guides published by the MNREJ each year. We had been
paying for membership in an online directory. We discontinued that earlier this year
since we did not get the results we felt we should.
Dan King prepared a report on a variety of publications. This report includes circulation
and target audience information, as well as preliminary cost information. The cost
information is usually somewhat negotiable. I have attached a coy of the report for your
review.
In looking at the preliminary costs information, we determined the following "cost per
circulation" figures, based on the 12-issue cost:
PUBLICATION NAME RATE RANK
MNREJ .1716 12
Twin Cities Business Monthly .0627 5
Minnesota Business Opportunities .0691 8
Ventures .057 4
Minnesota Technology .09 10
Midwest Business .035 1
City Business .0672 7 11
Expansion Management .0628 6
Site Selection .0740 9
U.S. Sites Did not receive media kit yet
Office and Industrial Properties .109 11
Business Facilities .0472 3
World Trade .0439 2
For circulation reached, the "best cost" alternatives are those ranked numbers 1, 2 3,
and 4. However, we do need to consider the audience reached, and other factors. As
we move towards 2000, staff felt it would be wise to review our advertising strategy to
determine if we are continuing to spend our dollars wisely. Alternatives include:
❖ Continue our current strategy with the MNREJ, with some additional funds for a few
additional ads in other sources.
❖ Choose a new publication or perhaps two to concentrate on for next year.
❖ Look at more partnering with Metro East or others for advertising.
❖ Some combination of the above. •
F:\GROUPS\PER_ECON\MA\MEDA Memos\July 99 Marketing.doc
Based on the rates listed above, we contacted those with rankings of 1 through 4, and
asked what they could provide to us with a budget of$5000 - $7,000. We received
• those proposals, but have not had time to finish analyzing them. (This was based on
the concept of splitting our advertising budget between two publications.) However,
some preliminary discussion with those in the field indicates that perhaps the current
MNREJ strategy is best, but perhaps we should look at expanding our ads (larger ads,
for example.)
ACTION REQUIRED
Staff will review the proposals received; as well as seek input regarding the value of
various publications. At this time, I would like input from the EDA as to a year 2000
advertising plan. I a not looking for final decisions at this time, rather, setting direction
and focusing on the alternatives that seem most viable.
Attachment
MAW
•
•
F:\GROUPS\PER_ECON\MAW\EDA Memos\July 99 Marketing.doc
•
COTTAGE GROVE ECONOMIC
DEVELOPMENT AUTHORITY
PUBLISHER RATES FOR MARKETING AND
ADVERTISING
1. Publication: MN Real Estate Journal
Territory: State
Circulation: 4,400, Every other week
Target Audience: Developers, Brokers, Financial Advisors, Business
Owners
Cost for 1/4 page ad: 1X = $755 per ad
Also publishes: MN Real Estate Journal Leasing Guide
(Quarterly) = $755 per ad
Contact: Jeff Johnson, 612-885-0815 (ext. 204)
Notes: •
This is the City's main publication for advertising, with monthly
advertisements, along with ads in the Leasing Guide, for 1999.
2. Publication: Twin Cities Business Monthly
Territory: Metro Area
Circulation: 33,500, Monthly
Target Audience: MN Business Owners, CEO's, Developers
Cost for 1/4 page ad: 1X = $2,100, 12X = $1,605 each
Contact: Connie Van Housen, 612-336-9214
Notes:
Metro East Partnership had an insert in the February Issue, should
seriously consider if offered in 2000. September Issue will focus on
Economic Development, deadline for submission is July 26.
•
F:\GROUPS\PER_ECON\Dan\marketing and promotion publications.doc
•
3. Publication: MN Business and Opportunity
Territory: Metro Area
Circulation: 17,000, Monthly
Target Audience: Business Owners, CEO's, Developers
Cost for 1/4 page ad: 1X = $1,174, 12X = $898 each
Contact: Megan Mitch, 612-844-0400
Notes:
Metro East Partnership is sponsoring a supplement to the August Issue.
4. Publication: Ventures
Territory: Metro
Circulation: 25,000, Monthly
Target Audience: Small-Medium Business Owners, CEO's
Cost for 'A page ad: 1X = $1,425, 12X = $787
Contact: Terry Johnson, 612-338-4288
Notes:
• Features an annual "Growth Guide" issue that highlights business support
providers in the state. Cost is around $2,400.
5. Publication: MN Technology
Territory: State
Circulation: 20,000, Every Other Month
Target Audience: MN Technology and Manufacturing Companies
Cost for 'A page ad: 1X = $1,800, 12X = $1,100
Contact: Michael Armel, 612-337-9888
Notes:
September/October Issue will focus on development in the NE part of the
state. They have offered to increase the size of any ad free of charge for
this issue to encourage participation in 2000.
•
F:\GROUPS\PER_ECON\Dan\marketing and promotion publications.doc
6. Publication: Midwest Business and Industrial Property •
Territory: Midwest Region, 12-state area
Circulation: 20,000, Every other Month
Target Audience: Business Owners, Developers, Brokers
Cost for 1/8 page ad: 1X = $700 3X = $650
Contact: Ridge Tenney, 888-670-3370
Notes: July/August Issue will focus on Minnesota, Deadline is July 2
7. Publication: City Business
Territory: Metro
Circulation: 19,000, Weekly
Target Audience: Business Owners, CEO's, Management
Cost for ' page ad: 1X = $1,276 13X = $1,085
Contact: Tammy Mencel, 612-288-2136
Notes: Publishes annual "Book Of Lists" in December, and
"Space" Leasing Guide in the spring and fall.
8. Publication: Expansion Management
Territory: National
Circulation: 45,000, Monthly
Target Audience: Business Owners, CEO's
Cost for 1/4 page ad: 1X = $2,830, 3X = $1,870
Contact: Chris Cheney, 877-530-8801
Notes: www.BPAl.com/circulation_library
9. Publication: Site Selection
Territory: National, International
Circulation: 45,000
Target Audience: CEO's, Owners
Cost For 1/3 page ad: 1X = $3,332, 12X = 2,482
Contact: 888-299-7836
Notes: Official publication of the International Development Resource
Council
•
F:\GROUPS\PER_ECON\Dan\marketing and promotion publications.doc
• 10. Publication: US Sites and Development
Territory: National
Circulation: monthly
Target Audience:
Cost For 1/4 page ad:
Contact: Tom Reed, 800-366-0676
Notes: Also publishes a quarterly Relocation Journal that is
distributed at Trade Shows nation wide to Business Owners and
Managers. Cost for 1/4 page ad: 1X = $1,250, 4X = $950
11. Publication: Office and Industrial Properties
Territory: National
Circulation: 20,000
Target Audience: CEO's, Owners, brokers
Cost For 1/4 page ad: 1X = $2,180, 8X = $1,853
Contact: Mike DeAnzeris 617-236-1800
Notes:
II12. Publication: Business Facilities
Territory: National, International
Circulation: 43,500
Target Audience: Business Owners, Brokers
Cost for 1/4 page ad: 1X = $2,054, 12X = $1,788
Contact: Henry Korff, 800-524-0337
Notes:
13. Publication: World Trade
Territory: National, International
Circulation: 84,000
Target Audience: Mid-Large size companies looking to expand
Cost for 1/4 page ad:1X = $3690, 12X = $3190
Contact: Bob Braiser, 949-789-3515
•
F:\GROUPS\PER_ECON\Dan\marketing and promotion publications.doc
OTHER FORMATS: •
Organization of Commercial Realtors Web Site: (OCR) would provide a
link to our Web Site from their Web Site (www.00R.org) for a fee of
$1,000 per year. Banner ads are also available for an additional $250 per
month.
Contact: Judy Puhl, 612-988-3136
Notes:
This service was discontinued in April 1999
US Real Estate Register: This is an annual reference directory aimed at
Property Managers of major businesses and Real Estate Brokers
worldwide. The City of Cottage Grove is currently listed for no charge
under the Economic Development section with CG EDA and a telephone
number. The Register also publishes Property Digest. More information
is being sent.
Contact: Mike Deanzers, 617-236-1800
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F:\GROUPS\PER_ECON\Dan\marketing and promotion publications.doc
City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator�nn'''
\v�
Date: 08/05/99
Re: Economic Development Section of the Comp Plan Item 4G
Attached is a copy of the Economic Development section of the Comprehensive Plan as
presented to the Planning Commission in the July 1999 draft. In response to concerns
voiced at the last EDA meeting, I added in a sentence from the EDA work plan
regarding the Mississippi River. (See page EDA-3, the second policy under the goal of
enhancing the appeal of Cottage Grove.) After the goals and policies, text was added
back in which was taken from the original document approved by the EDA last fall. If
you have any questions about this final draft, I will be happy to answer them.
The public hearing for the comprehensive plan is scheduled for August 30.
Attachment
\\CG_FS1\SYS\GROUPS\PER_ECON\MAw\EDA Memos\Aug 99 Comp Plan.doc
•
ECONOMIC
DEVELOPMENT
ELEMENT
City of
Cottage Grove
Comprehensive Plan e
2020
(1111
II
1 r6
ECONOMIC DEVELOPMENT
INTRODUCTION
Cottage Grove is poised for additional economic growth in the commercial and industrial
sectors. As a city with an urbanized area of 30 percent of its landmass, opportunities
for further economic development will continue to drive the local economy.
In 1987 the city deemed that creation of an Economic Development Authority would
better serve the public than the Economic Development Commission which was in
place. In recent years, the EDA has been very active in promoting the community.
They meet every month and often have special meetings to accommodate development •
projects. Annually, the members adopt a work plan, publish an annual report, and host
a development tour. A guiding principal of the EDA mission links the directive of the
EDA to the city's Comprehensive Plan.
In 1991, the city leaders recognized the need to formalize their economic development
process that culminated in a strategic plan titled Vision 2002. Accomplishment of many
of the Vision 2002 directives occurred within the first few years. In 1996, the Economic
Development Authority revisited the Vision 2002 strategic plan and developed a new
mission and corresponding goals to carry Cottage Grove into the new millennium. The
• new plan continues to reinforce key marketing strategies, business retention, business
attraction, and collaborative partnerships.
The Cottage Grove Industrial Park is the fourth largest contiguous industrial park in the
Twin Cities Metropolitan Area. Its total landmass is 700 acres, with approximately 500
acres remaining for development. Designated for light industrial users, the Industrial
Park has been slowly developing over the last 20 years, with increased activity taking
place at the end of the 1990's. Industrial park development has been a focal point for
the EDA since the mid-1990's. During this time the city and the EDA invested
resources for marketing, analysis, and improvements of the Cottage Grove Industrial
Park.
With approximately 2,200 acres zoned for industrial uses, including the 3M Cottage
Grove campus, industrialdustrial development will continue to be an integral part of thea s
development evolution.
GOALS AND POLICIES
GOAL: Enhance the strength of the Cottage Grove economy through the
support of local industry and the attraction of new industries which
bring quality jobs, an enhanced tax base, and new capital into the
• region.
EDA-1
POLICY: Support existing industry and assist them with expansion opportunities. IP
Implement a business retention and expansion process.
POLICY: Work to attract new industry to the community by responding to requests
for proposals and actively marketing the city and its industrial park.
POLICY: Maintain and enhance the economic development 'tools' which support
successful retention/expansion and business attraction efforts. This would
include maintaining a strong industrial park partnership with the private
sector owners/brokers, development of the spec building program, laying
the groundwork for a work force development effort, creating a
telecommunications policy and plan, and continuing to research and
develop other economic development tools.
POLICY: Focus staff and volunteer efforts through effective planning, reporting,
development, and training activities.
GOAL: Address local and regional issues critical to business site location
decisions.
POLICY: Enhance the image and perception of Cottage Grove internally (with City
residents and businesses) and externally (within the Metro area).
POLICY: Improve highway access to Cottage Grove by continuing staff
representation on key transportation task forces and working in
collaboration with area legislators to lobby for the placement of local
transportation concerns on the key funding lists maintained and
implemented by MnDOT. In terms of proposed transportation solutions
that may not be in the best interest of the community, publicly present our
disapproval and alternate solutions.
POLICY: Strongly support the investigation of a regional river bridge crossing.
POLICY: Evaluate alternatives to the single vehicle commute, including the
development of a transit center to offer park-and-ride, bus, and commuter
rail service.
POLICY: Secure expansion of MUSA capacity and expansion of the southeast
wastewater treatment plant in a manner that supports community growth
and development Work with planning staff to examine areas in the
community that can support a MUSA expansion.
POLICY: Ensure appropriate infrastructure such as roadways, sewer, and water is
readily available to designated commercial and industrial properties.
•
EDA-2
• POLICY: Support designation of additional land for commerciaVretail use.
Encourage centralization of these designations along Highway 61, but
include neighborhood centers.
POLICY: Identify and evaluate redevelopment opportunities within the City, with
focus on larger commercial shopping centers. Consider mixed uses for
these redevelopment areas, in addition to retail use.
GOAL: Enhance the appeal of Cottage Grove as a place to live and work.
POLICY: Enhance retail opportunities in Cottage Grove. Support retail task force
efforts.
POLICY: Identify and explore opportunities for improving access to the Mississippi
River for commercial/industrial, housing, and recreational opportunities.
Work with task forces, explore the current planning and regulatory
4ti framework, and identify potential opportunities, infrastructure requirements
and market feasibility. Monitor efforts of others such as MNRRA and the
Heritage River to ensure planning activities support continued use of the
Mississippi as a working river.
POLICY: Balance and diversify Cottage Grove housing stock by increasing options
• for'move up' market and upscale segments. Develop an approach to
attract this market of housing.
POLICY: Make appropriate policy and administrative adjustments, prepare
information and a 'community support' package to motivate development
and promote Cottage Grove to targeted housing developers.
GOAL: Support efforts to improve statewide "business climate" and
legislative issues which impact Cottage Grove's ability to attract and
retain jobs and tax base.
POLICY: Participate in metropolitan or statewide initiatives that address `business
climate' issues such as commerciaVindustrial property taxes, workers'
compensation, and a statewide visionlstrategy for economic development.
ECONOMIC DEVELOPMENT HISTORY
Economic development in Cottage Grove has not been approached haphazardly, but
with calculation and planning. In 1991, the city leaders recognized the need to
formalize their economic development process that culminated in a strategic plan titled
Vision 2002.
Accomplishment of the Vision 2002 directives occurred within the first few years. The
framework for attracting new development was evaluated through two critical studies: A
EDA-3
Study of the Retail Potential for Cottage Grove and Land Use & Market Feasibility •
Study-Cottage Grove Industrial Park. Both projects leveraged resources from parties
with vested interest in promoting community growth and diversity. The retail component
has served as a base for direct marketing to desired retail companies. It measured the
local economy and examined the retail needs of the community. The industrial park
study reaffirmed the city's vision for industrial growth and has provided a roadmap for
phased development and infrastructure improvements. A direct result of the industrial
park study was the restructuring of the city's industrial zoning ordinance.
COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY
Economic Development in Cottage Grove is directed and implemented by the Economic
Development Authority, with supervision by the City Council. In 1987 the city deemed
that creation of an Economic Development Authority would better serve the public than
the Economic Development Commission which was in place. The decision was based
on the flexibility of economic development authorities to accomplish economic
development efforts through powers afforded them by Minnesota State Statutes.
The first guiding principal of the EDA Mission links the directive of the EDA to the city's
Comprehensive Plan. Recognizing the need for coherent planning, the Economic
Development Authority actively participated in the Comprehensive Plan process,
focusing their energy on the land use recommendations, especially in the areas of •
commercial and industrial development.
LAND USE
Commercial and Retail
Evaluation of existing commercial areas led to the conclusion that commercial property
within the existing Metropolitan Urban Service Area is limited. The scarcity of
commercial property is a direct result of the intense retail growth taking place since the
early 1990's. In the Jamaica Avenue commercial district, the city has experienced a
large absorption of land. Numerous retailers, anchored by Target Stores, Menards, and
Cub Foods, have entered the market.
With limited capacity to accommodate additional retail and commercial growth,
additional sites throughout the city were considered for their retail and commercial
potential. As part of the Comprehensive Plan process, the EDA supports following sites
for commercial designation:
• Highway 61 and County Road 19
• Current Drive-in Theater site
• East side of Highway 61 from Jamaica Avenue to County Road 19
• Highway 61 and Highway 95
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• Attention was also given to establishing smaller scale neighborhood centers, which
would provide convenience items for the immediate area. Suggestions for this type of
use were:
• 70th Street and County Road 19
• 80th Street and County Road 19
• 100th Street and Hadley Avenue
• Hinton and Tower Connection
• West Draw
Overall, the EDA recommended that additional land be designated in the 2000
Comprehensive Plan for commercial/retail use. Centralization along Highway 61 was
encouraged, while at the same time the importance of neighborhood convenience was
recognized. These two philosophies appear polarized, but both meet the needs of the
citizens by providing opportunity for continued growth in common community needs
such as restaurants and additional retail services, and access to convenience items
such as gasoline, minor groceries, and other goods.
Redevelopment Opportunities
Commercial development in Cottage Grove has occurred during and after major
population growth in the community. This phenomenon occurred in the late 1960's and
early 1970's and again in the early and mid- 1990's. As a result, larger commercial
• projects such as shopping centers were built to meet the needs of local consumers.
In the late 1960's, the hub of commerce centered on the intersection of 80th Street and
Highway 61. Peripheral development took place on the frontage roads of East Point
Douglas Road and Hadley Avenue. At the time, three shopping centers were built to
accommodate the community's needs.
Over the past 30 years, minor aesthetic improvements have been made to the
buildings. However, the inconsistency of maintenance, coupled with the tenant mix,
have caused all the shopping centers in the area to appear distressed. The area's
prime location next to a major highway intersection and near dense residential
development makes the entire commercial district a viable redevelopment project.
Redevelopment of the area need not be solely retail oriented, but could be comprised of
mixed uses including housing, service providers, healthcare and transportation. With
the changing demographics of the population, an increase in businesses and services
for the `baby-boomers' is the most likely tenant mix.
Industrial
The development of industrial property has been an integral part of the city's economic
vitality. For 50 years the community has seen investment in this sector. Primarily, 3M
Cottage Grove Center has been the main contributor, however, in the recent past other
companies have also been making capital investments in Cottage Grove.
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3M Cottage Grove Center is a pivotal point in the history of industrial development
within thea . Fiftyyears ago, in 1948, 3M located Chemolite in CottageGrove. Over 411
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the years, 3M has diversified the Cottage Grove site and positioned it to be one of the
company's primary pilot plant facilities. During the past 50 years, 3M purchased over
1,500 acres in Cottage Grove. Currently, 3M is determining a land use plan for the
property which will hopefully include additional manufacturing and research and
development facilities.
City of CottageGrove designated an
In order to build on 3M as the major employer, the C ty C g g
area for additional industrial development. The site is contiguous to 3M, and is
significant in size to allow for employment diversification. The area is located south of
the Jamaica Avenue and Highway 61 intersection and is referred to as the Cottage
Grove Industrial Park.
Industrial park development has been a focal point of the EDA since the mid-1990's.
During this time the city and the EDA invested resources for marketing, analysis, and
improvements of the Cottage Grove Industrial Park. Partnerships with theelandown landowners
and brokerage firms were cultivated with joint funding of projects as a natural outcome.
In 1995, the EDA, in conjunction with the three industrial property owners, sponsored
the Land Use & Market Feasibility Study-Cottage Grove Industrial Park. As a result of
the six-month study, additional infrastructure improvements were completed and a
cooperative marketing campaign launched. In 1997, the relationship evolved, and with
the influx of excess tax increment the EDA optioned 40 acres within the Cottage Grove
Industrial Park. •
With approximately 2,200 acres zoned for industrial uses, industrial development will
continue to be an integral part of the city's development evolution. Its impact on the
community is being measured as Cottage Grove participates in a pilot program
sponsored by the Metropolitan Council, which measures the fiscal impacts of
development on a city. Industrial development has been identified as its own fiscal
analysis zone and employment projections have been developed based on low and high
absorption goals.
The most likely outcome will be between the low and high parameters, but the analysis
does provide a benchmark from which the EDA can evaluate the results of their efforts.
Overall results from the fiscal impact study may be used to guide resource allocation in
promoting certain types of development. It is anticipated that industrial development is
a critical contributor to the city's tax base and generates more in revenues than it takes
in services.
TRANSPORTATION
In considering potential development scenarios, the EDA evaluated the existing
transportation and road network within Cottage Grove. Three road systems were
marked for further evaluation. •
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The EDA examined the possible extension of Jeffery Avenue South to East Point
• Douglas Road. Initially, it was considered to be an alternate route for the neighborhood
to access the commercial district. However, the EDA was concerned that the extension
could cause Jeffrey Avenue to function as a collector street and disrupt the
neighborhood.
County Road 19 is a critical link from the community to Interstate 94. Given the possibly
that the regional interceptor may travel this route, there is an opportunity to widen the
road and capitalize on its status as a major arterial. The road currently serves as a
major north-south route for businesses and residents and its existing capacity will be
challenged as Cottage Grove continues to grow. With an expansion, comes the
potential for additional commercial development, particularly at the intersection of
Highway 61 and County Road 19, and possibly along the corridor to 90th Street.
A significant discussion revolved around the suggestion of incorporating a regional river
crossing into the Comprehensive Plan. The idea is generally supported without defining
the exact location. Conceptually, the river crossing is supported by the City of Inver
Grove Heights and is depicted on Map 1, Thoroughfare Plan of the Inver Grove Heights
Comprehensive Plan. It is the understanding of the EDA that the river crossing is an
important part of the regional system and its construction would have an impact on the
land use designations connected to it.
Transit has long been a concern for Cottage Grove and with the upgrades to the
• Wakota Bridge and Highway 61 between the years 2002 and 2008, it will become a
pressing concern. In anticipation of future congestion, the city has evaluated
alternatives to the single vehicle commute. Planning efforts have commenced for a
transit hub, which would facilitate both bus and, potentially, commuter rail traffic. The
approximate location is in the Langdon area, near the center of the community. Access
for both vehicles and passengers are adequate and land availability is good.
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