HomeMy WebLinkAbout2015-05-12 PACKET 04.B.01.
To: Economic Development Authority
From: Ryan R. Schroeder, City Administrator
Date: May, 2015
Subject: Development Update
Werner Electric Minnesota
On April 29, 2015 Werner hosted a very nice event for their 65,279 square foot
Business Park Expansion to their existing 116,349 square foot building (total 181,628 square
foot post expansion). It is interesting to note that Werner initially acquired their development
parcel from the City at a real estate closing on September 28, 2007. To experience the pace
of growth necessitating this size of expansion is somewhat unique. It is anticipated the
expansion will increase local payroll by $3 million and their taxable market value from $6.6
million to $8.4 million. The City created a TIF district to fund associated infrastructure for the
first phase project. That district will be retired in 2017.
Renewal by Andersen
The ground breaking for the 125,000 square foot office and production expansion will
likely occur in June. In addition to the state MIF/JCF funding reported last month we were just
informed that the project is receiving a $200,000 SWWD grant to assist with expansion of the
storm pond associated with this project.
American Logistics
After the last EDA the City Council approved the creation of the TIF district for this
project. The next step is a replat to facilitate this project and future development for the May
20 City Council meeting (see enclosed). We have not been informed of the projected
construction start date. Note that a separate item within this agenda addresses development
agreement changes.
Leafline
The certificate of occupancy for completion of this project is projected to occur on May
18, 2015.
Up North Plastics
Enclosed, please find the site plan for our newest Business Park expansion. This
86,640 square foot addition will be on the May 25 Planning Commission with a recommended
approval. If approved, this expansion would add approximately $2 million in taxable market
value to the existing $8.5 million property.
Credit Union
A permit to approve tenant improvements at the Target Mall, 8711 East Point Douglas,
in the former Yo-Joe’s which is also the former Merchants Bank location has been issued for
an area Credit Union. An opening date is anticipated this summer.
BEC Solar
Work on installation of the solar array began over a week ago and should be complete
within a week.
Building Permit Activity
YTD production continues at a fairly rapid pace with just over $24 million in building
permits issued through April. Included is just under $13 million in commercial and over $8
million in new home construction. Including what is in the queue we should anticipate at least
$33 million in commercial construction during 2015 which would place 2015 within the top 3-5
production years over the past fifteen. From a new home production perspective at 26
permitted units year to date we are on pace to complete between 70 and 100 homes during
2015 (our budget projections are at 70 units in both 2015 and 2016). Our average per unit
value for single family construction continues to rise and is now at $334,111/unit. This means
the resulting average retail price of these homes is at about $450,000.