HomeMy WebLinkAbout1998.11.10 EDA PACKET Secretary
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CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUTHORITY
AGENDA
TUESDAY, NOVEMBER 10, 1998
7:30 A.M.
• 1. Call to Order
2. Roll Call
3. Approval of October 13, 1998 Minutes
4. Business Items
A. Tech Review—Up North Plastics
B. Economic Development Section-Comprehensive Plan
C. 1999 Marketing Plan
5. Miscellaneous Business Items
A. Project Updates
6. Adjourn
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City of Cottage Grove
S
Memo
To: Economic Development Authority Members
From: Kirstin Barsness, Economic Development
Date: 11/02/98
Re: Tech Review—UpNorth Plastics
INTRODUCTION
UpNorth Plastics has applied for a variance to increase the height of a roof section to
62 feet in order to accommodate a new manufacturing line. The project is being fast
tracked and will be discussed at the Planning Commission meeting on November 9th
and then heard by the City Council the next evening, November 10th.
111
DISCUSSION
According to UpNorth Plastics plant manager, Dave Davenport, the variance will be
the first step in expanding the Minnesota location. The company has indicated that
they are interested in expanding the plant by 145,000 s.f. for warehousing. There are
no guarantees that granting the variance will result in the expansion.
The company has not requested any financial assistance. As many of you may
recall, the city used tax increment financing to attract UpNorth in the late 1980's.
Unfortunately, the company petitioned to have their market value decreased and the
TIF District revenues did not generate enough to cover the bonded indebtedness. In
anticipation of questions, staff researched the status of the TIF District. Currently, the
District has a cash balance of $3,896 and is scheduled to run through 2010.
Outstanding debt service on the bonds is $326,145 and there is an Economic
Development Fund loan of$257,807 that needs to be repaid.
Incorporating the potential 145,000 s.f., addition into the existing Tax Increment
District results in a projected fund balance of approximately $204,005. Without the
increase in market value supplied by the addition, it is difficult to predict whether the
TIF District will cash flow. The unknown appreciation on the facility and fluctuations
in the tax rates make the project difficult to forecast.
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November EDA Agenda •
UpNorth Plastics
Page 2
UpNorth Plastics is the first participant in the city's new accelerated approval
program. Any business or individual interested in having their project "fast tracked"
through the Planning Commission and the City Council can do so by paying a $500
fee. The fee has been incorporated in the city's fee resolution and all revenues will
be coded to the Community Development Department, as part of the general fund.
ACTION REQUIRED
The Planning Commission will have reviewed this item before the EDA meeting.
However, the City Council will be discussing the project Tuesday evening. Any
comments the EDA has on the variance can be delivered to the City Council.
•
•
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Kirstin Barsness, Economic Development Dir or
Date: 11/03/98
Re: Economic Development Section—Comprehensive Plan
INTRODUCTION
At the October EDA meeting, suggestions were made for editing the economic
development section of the Comprehensive Plan. Staff has incorporated the ideas
and has added redevelopment, transportation and transit sub-sections. We will
review the new draft on Tuesday morning and then forward it to the Community
Development Department for inclusion in the final Comprehensive Plan document.
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}
1
Third Draft
• November 3, 1998
Section : Economic Development
INTRODUCTION
During the 1990's, Cottage Grove established itself as one of the ten fastest
growing communities in the Twin Cities Metropolitan Area. With a population
increase of thirty-one percent during this period, the community is poised for
additional economic growth in the commercial and industrial sectors. As a city
with an urbanized area of thirty percent of its landmass, opportunities for further
economic development will continue to drive the local economy. Residents will
have greater access to both local employment and retail service facilities. •
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. Through this process, the coordination and hiring for a
full-time economic development professional emerged. Working with the city's
• Economic Development Authority, the newly hired city staff would help administer
the goals and objectives derived from 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 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.
Business retention was also a key element of the Vision 2002 strategic plan.
Local retention practices were solidified by sponsoring special events for local
businesses such as the Manufacturer's Breakfast and also by formalizing the
community's business visitations. Contact with local businesses is enhanced by
active participation in the Cottage Grove Area Chamber of Commerce and by
having a city staff member serve on the Chamber's Board of Directors.
In 1996, the Economic Development Authority revisited the Vision 2002 strategic
plan and developed a new mission and corresponding goals to carry Cottage
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Grove into the new millenium. Building on the successes of the previous •
strategic plan, the new plan incorporates cutting edge strategies for addressing
emerging economic development issues concerning School-to-Work Initiatives,
Labor Force Retention, and Customized Training. The new plan continues to
reinforce key marketing strategies, business retention, business attraction and
collaborative partnerships. Through careful guidance and thoughtful
recommendations from the Economic Development Authority, Cottage Grove's
economic development program will be strong and flexible, allowing for continued
economic growth.
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.
Throughout its brief history the Cottage Grove Economic Development Authority
(EDA) has evolved from the initial five member board to seven members. Two
members are from the City Council, per statute, one being the Mayor, who also •
serves as the EDA's President. The remaining five members are from the
community at large and must either be a citizen of Cottage Grove or own a
business within the city.
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. All of their activities relate to the
organization's adopted Mission Statement, which reads:
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 business in the community.
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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.
The first guiding principal mentioned above 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 RECOMMENDATIONS
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,
111 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
recommended to the Planning Commission the 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
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
• The West Draw
•
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Overall, the EDA recommended that additional land be designated in the 2000 •
Comprehensive Plan for commercial/retail use. Centralization along Highway 61
was encourage, 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 around 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, has 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.
3M Cottage Grove Center is a pivotal point in the history of industrial
development within the city. Fifty years ago, in 1948, 3M located Chemolite in
Cottage Grove. The plant's purpose was to manufacture adhesive, scotchlite, •
and other chemicals for the parent company. Over the years, 3M has diversified
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• the Cottage Grove site and positioned it to be one of the company's primary pilot
plant facilities. During the past 50 years, 3M purchased over 1,500 acres in
Cottage Grove. Currently, 3M is determining a land use plan for the property
which will hopefully include additional manufacturing and research and
development facilities.
In order to build on 3M as the major employer, the City of Cottage Grove
designated an area for additional industrial development. The site is contiguous
to 3M, and is significant in size to allow for employment diversification. The area
is located south of the Jamaica Avenue and Highway 61 intersection and is
referred to as the Cottage Grove Industrial Park.
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
twenty years, with increased activity taking place at the end of the 1990's.
Industrial park development has been a focal point of the EDA since the mid-
1990's. During this time the city and the EDA invested resources for marketing,
analysis, and improvements of the Cottage Grove Industrial Park. Partnerships
with the landowners and brokerage firms were cultivated with joint funding of
projects as a natural outcome. In 1995, the EDA, in conjunction with the three
111 industrial property owners, sponsored the Land Use & Market Feasibility Study-
Cottage Grove Industrial Park. All participants along with Northern States Power,
provided funding.
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.
A few short months later, Renewal by Andersen selected Cottage Grove as the
site of their Division Headquarters and new manufacturing pilot plant. The
project functioned as a catalyst and the parties continue to partner on creative
land options for assisting development in the area. Increased activity and
interest is occurring and revised absorption goals have been identified.
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.
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The employment trend is: •
Trend Level 1999 2000-2005 2006-2010 2011-2015 2016-2020 TOTAL
Low 233 565 415 415 415 2,043
High 706 2931 2781 2781 2781 11,980
Assumptions regarding the absorption rate for the low trend are 1,000 s.f. for
office, 20,000 s.f. for light industrial, and 20,000 s.f. for heavy industrial
(classified as 3M Cottage Grove Center). The high trend absorption rates are
8,000 s.f. for office, 200,000 s.f. for light industrial and 60,000 for heavy
industrial. Employment multipliers were supplied by the Urban Land Institute and
are calculated on an employment density by type of workplace analysis.
(Washington D.C.:ULI, 1986. ULI Catalog Number: E13)
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 will 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:
• Potential Jeffery Avenue extension to East Point Douglas Road.
• Expansion of County Road 19 into a four-lane divided parkway.
• Regional River Bridge Crossing.
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. The issue should be evaluated
and discussed at the time the Drive-in Theater site develops.
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, •
1\CG_FS1\SYS\CG\COMMDEV\Econ Dev Comp9-98.doc
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• 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 HUB
Transit has long been a concern for Cottage Grove and with the upgrades to the
Wakota Bridge and Highway 61 between the years 2002 and 2008, it will become
a pressing concern. In anticipation of future congestion, the city has evaluated
alternatives to the single vehicle commute. Planning efforts have commenced for
a transit hub, which would facilitate both bus and potentially commuter rail traffic.
The approximate location is in the Langdon area, near the center of the
community. Access for both vehicles and passengers is adequate and land
availability is good.
• The initial concept allows for a transit station large enough to accommodate a
significant Park-n-Ride and parking for commuter rail. Surrounding the transit
station is property for a mixed-use development: retail and commercial services,
medium to high-density housing, and industrial development. It is feasible that
the transit station would not only be used for local commuters working outside of
the city, but for employees traveling to work in the Cottage Grove Industrial Park.
Funding for the project has been committed for conceptual planning, especially
for the commuter rail component. Grant applications to a variety of funding
agencies have been and are being submitted. The city hopes to complete the
project prior to the Highway 61 expansion.
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City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Kirstin Barsness, Economic Development Dii
Date: 11/05/98
Re: 1999 Marketing Plan
INTRODUCTION
In an attempt to formalize our marketing efforts, staff has drafted a marketing plan for
1999. The table is divided into the months of the year and into different sections for
internal and external audiences. A key with various marketing approaches helps
• decipher what activity happens each month.
Please review and bring suggestions for improving the plan.
0
1999 Economic Development Marketing Plan
III
Internal Audience External Audience
EDN City Citizens Local Developers Brokers Regional Business
Council Employees Business
January A B J I, J J
February A, F B D G I, J J I, J
March A B, C C F F, J F, J F, J
April A B G, J G, I, J G, J
May A B D G I, J J I, J
June A, F B, C C F F, J F, J F,J
July A B I. J J J
August A, H B D H, J H, J J
September A, F B, C C F F, J F,J F, I,J
October A B G G, J G, I, J G,J
November A B D I, J J J
December A, F B, C C F F, J F, J F,J •
KEY:
A= Economic Development Monthly Updates
B = Monday News
C=Cottage Grove Reports •
D = Cable Program
E =Articles in Local Paper
F = Newsletter
G = Personal Visits/Calls
H = Development Tour
I = Direct Mail
J =Advertising in Minnesota Real Estate Journal
K= Press Release
L= Feature Articles
NOTES:
• After every major project a press release will be sent to the Bulletin, Pioneer Press, Star
Tribune, City Business, Minnesota Real Estate Journal, DTED, MEDP. Phone calls
requesting articles will be made to the above mentioned print media outlets. All audiences
are reached.
• This same table can be used to record when marketing efforts actually occurred throughout
• the year.
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May 1997
Citizens and Businesses of Cottage Grove:
The City Council and Economic Development Authority are pleased to present
our 1996 Economic Development Annual Report. For the past four years, we
have focused our efforts on growing local economy through the attraction and
retention of business and industry. This document is a record of our activities,
challenges and successes.
Last year marked a transition in the economic development department. The
first three years of operation (1993-1995) were years of development; we
prepared studies on key economic sectors, such as retail and industry;
marketing materials were created and a strategy was implemented; they were
years in which we prepared ourselves for development. In 1996, we made the
transition from a fledgling organization to a mature one. The groundwork had
been laid and we began to reap our rewards.
In 1996, the community experienced numerous successes. We saw expansion
of existing and the location of new businesses into our retail/service market.
The result was the creation of 499 new full-time and part-time jobs in the city.
Investment recorded through commercial building permits, hit a five year high of
$14,407,285.00. All the activity was a result of good planning and marketing.
Hopes for 1997 are high. There are already plans for new construction in both
the retail and services sector. In addition, we anticipate activity in the Cottage
Grove Industrial Park. All of our work is made possible through the support of
Cottage Grove residents and businesses. We appreciate your encouragement
and pledge to do our best to enhance the tax base, stimulate job creation and
promote the City of Cottage Grove.
Very truly yours,
John D. Denzer
Mayor
Cottage Grove Economic Development Partners
CITY COUNCIL MEMBERS
John Denzer, Mayor
Rod Hale, Councilmember
Kevin Raun, Councilmember
Sandy Shiely, Councilmember
Jim Wolcott, Councilmember
ECONOMIC DEVELOPMENT AUTHORITY MEMBERS
John Denzer, President
Gerard Weingartner, Secretary & Treasurer
Tim Anderson, Commission Member
Donna Boehm, Commission Member
Gus Briguet, Commission Member
Bill Buth, Commission Member
Bruce Gengnagel, Commission Member
Glen Kleven, Commission Member
Kevin Raun, Commission Member
CITY STAFF
Kirstin Barsness, Director of Economic Development
Kay Wilcox, Economic Development Secretary
Cathy lago, Administrative Secretary
Mission Statement
The Economic Development Authority works with its partners to encourage
business and industry, and the creation of quality jobs in the City of Cottage
Grove using all tools and methods that are appropriate.
As we implement this mission, we will be mindful of the following guiding
principles:
Encourage quality commercial and industrial development
which enhances the quality of life for Cottage Grove's
citizens and is compatible with the City's Comprehensive
Plan.
Utilize sound financial practices in using incentives to
attract and expand businesses in the community.
Consider the use of incentives in instances where they will
promote quality jobs and development for the City.
Recognize the interdependence of the private and public
sector in a healthy community and foster a spirit of
cooperation between the two sectors.
Economic Development Focal Points
Business Retention
Business Attraction
Community Partners
Economic Impacts
Business Retention
Business Retention
As a focal point in the City's Economic Development work plan, Business
Retention programming targets the community's existing business base. Many of
the activities related to retention are ongoing annual events or programs. They
are geared to recognize the importance of existing businesses to the local
economy. Often it is through the existing business base that the greatest growth
in jobs and capital investment occurs.
In 1996, the Economic Development Department and EDA undertook the
following business retention activities:
Retailer Meetings
Manufacturer's Week Breakfast
Business Retention Survey
Meetings with Existing Businesses
Retailer Meetings
As an added component to the business retention survey and visit, retailer
meetings were sponsored by the Economic Development Authority. A letter was
sent to each of the shopping center owners asking their permission to meet with
the tenants. Invitations were then sent to all the tenants in a specific shopping
center asking them to come to a meeting and share any concerns. Each meeting
was held on site at the shopping centers, in the morning before the retail stores
opened.
This was the first time the retailers were targeted for a visit. As a growing segment
of the business community, the EDA felt it was important to solicit their feed back
about the community and address any concerns shared by this particular group.
Business Retention
Manufacturer's Week Breakfast
Every year, the Economic Development Department in conjunction with the Chamber
of Commerce and 3M Cottage Grove Center sponsors a breakfast for the
manufacturers in the communities of Newport, St. Paul Park and Cottage Grove. The
breakfast recognizes the importance of manufacturers to the local economies and the
State of Minnesota. This annual event includes a keynote address which focuses on a
topic specific to manufacturing.
The keynote address this year was given by Craig Anderson, Vice President of
Customized Training for the St. Paul Technical College. Mr. Anderson's remarks were
made to approximately 60 attendees and centered on the innovations taking place in
training services and programs. Highlights included discussions about a customized
dial-in training program, skill matching and video conferencing.
Attendees left with a clear sense that the local technical college can be an invaluable
resource for their training needs.
Business Retention Survey and Visit
A core program sponsored by the Economic Development Authority is the business
retention survey and visit. Every other year, a segment of the local business
community is targeted for a survey. The survey sample includes the City's major
employers and small businesses which show high growth potential.
The EDA sent surveys to 19 area businesses and 11 were returned. In the survey,
businesses were asked questions about expansion or relocation plans, their access to
skilled employees or other resources such as financing, and whether they wish to visit
with the Economic Development Authority. In general most businesses are satisfied
with Cottage Grove but like most Twin Cities employers, are having difficulty attracting
qualified employees and accessing resources. However, in Cottage Grove, residents
indicated in a recent survey, that for a similar employment opportunity, they would
prefer to work locally.
Business Retention
Meetings With Existing Businesses
The Economic Development Director frequently meets with managers and owners
of businesses in the community. Occasionally, these meetings lead to private-
public partnerships resulting in the business expanding in Cottage Grove.
In 1996, two long term projects finally came to completion. Both projects were the
result of the city working closely with existing businesses. The expansion of the
River Valley Clinic and Phase I redevelopment of Grove Plaza are examples of
how the private and public sectors can work together.
River Valley Clinic looked to the city to help with the site search for its new 24,000
s.f. clinic and also for financial assistance. The clinic wanted to use non-profit
bonds to finance the construction of the building and Cottage Grove worked with
them in exploring options. As a result, the bonds were issued, but it was the City
of Woodbury that could accommodate the request.
Grove Plaza has begun a major redevelopment process. The city helped the
property owners address concerns about the traffic flows in and out of the
shopping center. Through the City's Tax Assistance Program the East Point
Douglas area on the west side of the Mall was re-aligned and traffic signals were
installed. The improvements will be paid for using the new taxes generated by the
redevelopment of the shopping center.
Business Attraction
Programs and activities for this area of emphasis focus on making Cottage Grove
an attractive destination or location for businesses. Many of the city's marketing
efforts revolve around business attraction with an emphasis on businesses not
currently in the community. Attraction of new businesses is vital to expanding the
local job opportunities pool and allows for existing residents to seek employment
locally.
1996 Business Attraction Activities
Developer's Tour
Framework for Home Page
Membership in Metro East Development
Partnership
Wanted! - Direct Mail Campaign
Site Tours
Business Attraction
First Annual Developer's Tour
For the first time an event was held to showcase Cottage Grove to the
Development and Brokerage communities. Over sixty real estate professional
were invited to tour the community and participate in a golf tournament. The
focus of the day was to promote the city as a place for new development,
especially industrial development.
Framework for the Home Page
The Internet and the World Wide Web have evolved into a marketing and
information tool. Private business and government have embraced this medium
as another way to distribute their message.
An intern developed the base for the Economic Development Component of the
City's Web Site. Areas contained in the site include industrial and retail
opportunities, workforce, community profile and financial assistance. Remaining
steps include the scanning of graphical support data such as pictures and maps,
and most importantly an address on the World Wide Web.
Membership in Metro East Development Partnership
Cottage Grove maintains its membership in the Metro East Development
Partnership. A regional marketing organization, Metro East serves Washington,
Dakota and Ramsey Counties. As part of its member service, Metro East links
interested businesses with sites in its membership communities. In 1996,
Cottage Grove responded to 28 Metro East request for Proposals.
Site Tours
When a company prospect begins to narrow their site locations, they ask to visit
the community and have a site tour. One of the most notable site tours the city
hosted was for Excelsior Henderson Motorcycles. All total, there were 15 site
tours in 1996.
Business Attraction
WANTED! Direct Mail Campaign
In an effort to raise awareness in the real estate community about the Cottage
Grove Industrial Park, a direct mail marketing campaign was launched. The
theme was "Wanted! Businesses to located in the Industrial Park." A $5,000
reward was offered to the first broker that brings a client who locates in the
industrial park. The wanted poster was sent to approximately 300 brokers in the
Twin Cities.
Feature Articles
As part of the marketing plan for the Economic Development Department,
articles and press releases are submitted to the regional newspaper and
business publications. The community's retail sector was featured in the
Minnesota Shopping Centers Association Annual Leasing Guide. This
publication was distributed to over 10,000 retail developers.
Community Partners
The following organizations are working together to enhance the economic vitality
of Cottage Grove. Each plays an important role in ensuring a healthy business
climate for companies to grow.
• Cottage Grove Area Chamber of Commerce
Through its Retail and Business Development
Committee, the chamber works with the city on attraction
of new business and retention of existing business. The
chamber is part of the site tour team and every other
month visits firms in the area.
• Metro East Development Partnership
One service which Metro East provides to companies
looking for locations is to distribute a site request for
proposal to its membership communities. Frequently, the
prospective company will visit a selected group of
communities, a visit coordinated by Metro East. Cottage
Grove has been fortunate to participate in the process.
• Northern States Power Economic Development
The Industrial Park is served by NSP electric and gas
utilities. The company assists the city in marketing
Cottage Grove as a business location and has been
known to bring prospective companies into the area for
site tours. In the past, NSP has helped to fund the
Industrial Park Study and Developers Tour.
• Economic Development Authority
Appointed by the City Council, the seven member board
guides the community's economic development activities.
The EDA is responsible for implementing the business
retention and attraction programs, along with coordination
of the marketing plan.
Economic Impacts
�( Business Contacted
�( Business Locating
% Business Retained & Expansions
X Estimated Employment
�( Investment
Economic Impacts
Business Contacted
This category includes all businesses which contact or are contacted by the
Economic Development Department. The majority of businesses in this category are
requesting information about the community as part of a search for a new location.
Each business is assigned an electronic file on the computer and all interactions are
recorded.
Business Locating
All business locating in the city's commercial areas, such as shopping centers or the
industrial park, are included in this category. These businesses are new to the
community and either fill a vacant space or construct a new building.
Business Retained & Expansions
Businesses which expand their employment or building square footage are
considered to be expansions. Retention includes keeping a business in the
community which was considering closing its doors and moving elsewhere.
Estimated Employment
Every time a business locates or expands in the city, they are asked to estimate the
number of jobs which will be created. Figures are gather for full time and part time
employment.
Investment
The total cost to build and/or remodel a commercial or industrial space is
considered an investment in the city. This figure is calculated by the Building
Department and is based on the valuations of the business projects provided to the
city on the building permit. If a new building is being constructed, its valuation will
be used to calculate the taxes the business will pay.
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1996 Economic Development Highlights
• Facilitated retention and expansion of River Valley Clinic
• Revision of Vision 2002 Strategic Plan
• Developed First Economic Development Annual Report
• Worked with State legislature to reform Tax Increment Financing as
related to Green Acres provision
• Coordinated Excelsior Henderson Motorcycles proposal and site tour
• Sponsored first annual Developers Tour and Golf tournament
• Facilitated Phase I of Grove Plaza Redevelopment
• Developed framework for Economic Development Home Page
• Sponsored Third Annual Manufacturer's Breakfast
• Implemented Business Retention Survey
• Coordinated and hosted Shopping Center tenants meetings
• Featured in Minnesota Shopping Center Association Guide
• Amendment of Plan for Tax Increment District 1-7
• Launched $5,000 Reward campaign
• Continual update of available properties lists
• 124 Individual Business Contacts
City of
Cottage Grove
Minnesota
•7516 80th Street South/Cottage Grove,Minnesota 55016 612 •458-2800
November 3, 1998
Dick Pederson
8027 Hynes Ave S
Cottage Grove, MN 55016
Dear Dick,
Congratulations on your recent appointment to the Economic Development
Authority, which the City Council approved at their October 21, 1998 meeting.
Economic Development Director Kirstin Barsness' memo to the Mayor and City
Council states that you will be filling a seat recently vacated with the resignation
of Bill Buth. It was noted that your background as a former elected official and
resident of the community, as well as your knowledge of economic development,
will lend commitment and experience to this appointment.
• Again, thank you for your service to the community, and congratulations on your
appointment to the Economic Development Authority for the City of Cottage
Grove. "
Sincere)
Ryan R. Schroeder
City Administrator
•
EQUAL OPPORTUNITY EMPLOYER
City of Cottage Grove
Memo
To: Kim Lindquist, Community Development Director
From: Kirstin Barsness, Economic Development Director
Date: 11/11/98
Re: Economic development section for the comprehensive plan
On Tuesday, November 10, 1998, the Economic Development Authority passed a
motion approving the drafted economic development section for the comprehensive
plan. A copy of the document has been attached and can be accessed in the I:Drive
in the community development folder.
• The Authority requests that the economic development section be presented to the
Planning Commission as part of the comprehensive planning process. Any
proposed edits of the document should be reviewed by the EDA prior to actual
changes. It is their intent that the economic development section reaches the City
Council in an unedited form.
On behalf of the EDA, I want to thank you for assisting us with our process and for
asking us be a part of this very important city planning process.
•
Document2
•
Section : Economic Development
INTRODUCTION
During the 1990's, Cottage Grove established itself as one of the ten fastest
growing communities in the Twin Cities Metropolitan Area. With a population
increase of thirty-one percent during this period, the community is poised for
additional economic growth in the commercial and industrial sectors. As a city
with an urbanized area of thirty percent of its landmass, opportunities for further
economic development will continue to drive the local economy. Residents will
have greater access to both local employment and retail service facilities.
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. Through this process, the coordination and hiring for a
full-time economic development professional emerged. Working with the city's
Economic Development Authority, the newly hired city staff would help administer
• the goals and objectives derived from 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 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.
Business retention was also a key element of the Vision 2002 strategic plan.
Local retention practices were solidified by sponsoring special events for local
businesses such as the Manufacturer's Breakfast and also by formalizing the
community's business visitations. Contact with local businesses is enhanced by
active participation in the Cottage Grove Area Chamber of Commerce and by
having a city staff member serve on the Chamber's Board of Directors.
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 millenium. Building on the successes of the previous
strategic plan, the new plan incorporates cutting edge strategies for addressing
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2
• emerging economic development issues concerning School-to-Work Initiatives,
Labor Force Retention, and Customized Training. The new plan continues to
reinforce key marketing strategies, business retention, business attraction and
collaborative partnerships. Through careful guidance and thoughtful
recommendations from the Economic Development Authority, Cottage Grove's
economic development program will be strong and flexible, allowing for continued
economic growth.
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.
Throughout its brief history the Cottage Grove Economic Development Authority
(EDA) has evolved from the initial five member board to seven members. Two
members are from the City Council, per statute, one being the Mayor, who also
serves as the EDA's President. The remaining five members are from the
community at large and must either be a citizen of Cottage Grove or own a
business within the city.
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. All of their activities relate to the
organization's adopted Mission Statement, which reads:
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 and redevelopment
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 business in the community.
• Consider the use of incentives in instances where they will promote
quality jobs and development for the City.
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3
• Recognize the interdependence of the private and public sector in a
healthy community and foster a spirit of cooperation between the two
sectors.
The first guiding principal mentioned above 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 RECOMMENDATIONS
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
recommended to the Planning Commission the 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
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
• The West Draw
•
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. Overall, the EDA recommended that additional land be designated in the 2000
Comprehensive Plan for commercial/retail use. Centralization along Highway 61
was encourage, 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 around 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, has 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.
3M Cottage Grove Center is a pivotal point in the history of industrial
development within the city. Fifty years ago, in 1948, 3M located Chemolite in
• Cottage Grove. The plant's purpose was to manufacture adhesive, scotchlite,
and other chemicals for the parent company. Over the years, 3M has diversified
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• the Cottage Grove site and positioned it to be one of the company's primary pilot
plant facilities. During the past 50 years, 3M purchased over 1,500 acres in
Cottage Grove. Currently, 3M is determining a land use plan for the property
which will hopefully include additional manufacturing and research and
development facilities.
In order to build on 3M as the major employer, the City of Cottage Grove
designated an area for additional industrial development. The site is contiguous
to 3M, and is significant in size to allow for employment diversification. The area
is located south of the Jamaica Avenue and Highway 61 intersection and is
referred to as the Cottage Grove Industrial Park.
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
twenty years, with increased activity taking place at the end of the 1990's.
Industrial park development has been a focal point of the EDA since the mid-
1990's. During this time the city and the EDA invested resources for marketing,
analysis, and improvements of the Cottage Grove Industrial Park. Partnerships
with the landowners and brokerage firms were cultivated with joint funding of
• projects as a natural outcome. In 1995, the EDA, in conjunction with the three
industrial property owners, sponsored the Land Use & Market Feasibility Study-
Cottage Grove Industrial Park. All participants along with Northern States Power,
provided funding.
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.
A few short months later, Renewal by Andersen selected Cottage Grove as the
site of their Division Headquarters and new manufacturing pilot plant. The
project functioned as a catalyst and the parties continue to partner on creative
land options for assisting development in the area. Increased activity and
interest is occurring and revised absorption goals have been identified.
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.
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• The employment trend is:
Trend Level 1999 2000-2005 2006-2010 2011-2015 2016-2020 TOTAL
Low 233 565 415 415 415 2,043
High 706 2931 2781 2781 2781 11,980
Assumptions regarding the absorption rate for the low trend are 1,000 s.f. for
office, 20,000 s.f. for light industrial, and 20,000 s.f. for heavy industrial
(classified as 3M Cottage Grove Center). The high trend absorption rates are
8,000 s.f. for office, 200,000 s.f. for light industrial and 60,000 for heavy
industrial. Employment multipliers were supplied by the Urban Land Institute and
are calculated on an employment density by type of workplace analysis.
(Washington D.C.:ULI, 1986. ULI Catalog Number: E13)
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 will 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:
• Potential Jeffery Avenue extension to East Point Douglas Road.
• Expansion of County Road 19 into a four-lane divided parkway.
• Regional River Bridge Crossing.
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. The issue should be evaluated
and discussed at the time the Drive-in Theater site develops.
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,
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• 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 HUB
Transit has long been a concern for Cottage Grove and with the upgrades to the
Wakota Bridge and Highway 61 between the years 2002 and 2008, it will become
a pressing concern. In anticipation of future congestion, the city has evaluated
alternatives to the single vehicle commute. Planning efforts have commenced for
a transit hub, which would facilitate both bus and potentially commuter rail traffic.
The approximate location is in the Langdon area, near the center of the
community. Access for both vehicles and passengers is adequate and land
availability is good.
• The initial concept allows for a transit station large enough to accommodate a
significant Park-n-Ride and parking for commuter rail. Surrounding the transit
station is property for a mixed-use development: retail and commercial services,
medium to high-density housing, and industrial development. It is feasible that
the transit station would not only be used for local commuters working outside of
the city, but for employees traveling to work in the Cottage Grove Industrial Park.
Funding for the project has been committed for conceptual planning, especially
for the commuter rail component. Grant applications to a variety of funding
agencies have been and are being submitted. The city hopes to complete the
project prior to the Highway 61 expansion.
•
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