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HomeMy WebLinkAbout1998.11.10 EDA PACKET Secretary i 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 i F:\GROUPS\PER_ECOMKEB\EDA Packets\98agenda\November.doc 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. . F:IGROUPS PER ECON xEBEEDA Pac kets19Bpcket\UpNotth Nov.doc 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. G:KEB\EDA Packets\98pcket\CompPlan Draft 2.doc } 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 \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 2 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. \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 3 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 • \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 4 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 1\CG_FS 1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 5 • 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. \\CG_FSI\SYS\CG\COMMDEV\EconDev Comp9-98.doc 6 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 7 • 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. \\CG_FS1\SYS\CG\COMMDEV\Econ Dev Comp9-98.doc 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. 0 ....- MAP 1 i City of hive!.Grove Heights • THOROUGHFARE PLAN • 0 .. I'llafahill II' I II -ii. NOD 0 1--. APRIL,i998 0100/.1.1... 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Neighborhood Cakaor 41AKE i. ___ 1 city of Otto, a Grove A AM Ecollomic Allthority `kw .. y.l y;. .x:` ,COME .; 4!*.‘ '..." TO t� . . i AGE GROVE �: , ., w q • T lam, AN\UL PORT J , ii_F _. ,.,_ ........ 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. - Ict u-) C) CD ''.'166:41 r- OO O [) ' OO M. i i MLn) N— a (0 a • " Nr 0 'L7 U La a)-- � :EE 'il C C L - U 69 , rn (0 0 r• 00 0 (0N 0 0 1 I I 1 1 0 CO , 0 .— '� a) �a ca2 ' 7tO ao 5 coo H 23 m a) .a a) W� c)L o(A (n C LL r !t Mg:Zgffi ONO O O N o O N 0 0 IgElnrg Q1 0 r— d r- ; 0 U - .0 ' r ._ N a) C > cn a) > � C � C N � � � U d M I— N0 OMN COOS O C) CO i I i I I �• M O — I- U U •� a) ' N "- a)73 O C C W U) CU LU C CHIMMN U a) CI_ 64O a) C co a) Z . a) a) a iC U " C C iiiRM u) n V) v) :go m a) = (1) II cz a C C ! C - : U) U _� m m m W W 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 \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 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. \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 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 • \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 4 . 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 \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 5 • 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. \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 6 • 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, \\CG_FS1\SYS\CG\COMMDEV\EconDev Comp9-98.doc 7 • 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. • \\CG_FSI\SYS\CG\COMMDEV\EconDev Comp9-98.doc