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HomeMy WebLinkAbout2017-03-14 PACKET 04.01. Development Inquiry Update To: Honorable Mayor Bailey and EDA Members From: Christine Costello, Economic Development Director Date: March 6, 2017 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action Meeting with Industrial Met on two separate occasions with the industrial developers Developers, January 3 and on how we might better market the Business Park or if there January 6, 2017 were any inefficiencies that we could improve upon to position Cottage Grove for growth. We heard from both that the population growth in the Twin Cities has grown to the west and also the perception is that crossing the river extends the commute time substantially for employers. So since we can’t physically move our location we inquired about what would make our Business Park competitive and whether our asking price per square foot was competitive for the southeast metro. They both stated that they would bring clients to tour the area if land was priced in the $2.00-$2.50 per square foot range. We are reevaluating our costs as well as asking the land owners to determine their best offer so that we can be competitive in the market. Washington County Econ. Attended the monthly work group that is working to establish an Development Work Group, economic development plan for the County. Developing top January 4, 2017 priorities for the work plan. Chamber Board meeting, The Chamber Board held there monthly meeting and January 12, 2017 conducted a planning session to discuss their continued growth. BR&E Task Force training, Task Force is made up of local business owners, elected and January 17, 2017 appointed officials, and City and County staff. The Task Force learned how to use the survey and record responses appropriately. The Task Force will conduct interviews of Cottage Grove businesses and assist in developing strategic goals that that will support in retaining existing businesses and helping businesses grow. Economic Development Matt Wolf, Economic Development Assistant and I attended the Association of Minnesota conference. Sessions included online communication (EDAM) Winter strategies for economic development, collaboration efforts with Conference, January 19-higher education institutions and employers, walkable 20, 2017 developments and there economic development benefits, developing housing as an effective way to attract and retain employees so businesses can grow and diversify, and using Development Inquiry Update March 6, 2016 Page 2 placemaking as way to create places of economic and social value. East Metro Strong Attended the monthly meeting in which the 2017 work plan and meeting, January 23, 2017 budget was discussed Meeting with Hy-Vee Mayor Bailey, City Administrator Stevens, and I met with two recruiters, January 24, Hy-Vee recruiters so they could learn more about the 2017 community. Then representatives of the Cottage Grove Area Chamber and I met with the recruiters to discuss the upcoming Business Showcase and Job Fair the Chamber will be holding. Then I provided the recruiters a tour of the community. Webinar, January 24, 2017 Matt Wolf, Economic Development Assistant participated in a webinar. The webinar was from Retail Strategies and the speaker was William Horner, Chief Real Estate Officer of LA Fitness. Highlights from the webinar include: -LA Fitness is 32 year old company with 695 clubs. -Fitness sector is in growth mode. Top 3 companies opening new stores in 2016 1. LA Fitness 2. Orange Theory 3. Planet Fitness. -Most growth in California and Texas, Minnesota as seen limited growth. -Fitness Industry $22 Billion in 2016. 15% larger than the theater industry. -Types of businesses: 1. Studios, all classes limited equipment. 2. Fitness Centers (Planet Fitness, Snap) lots of equipment no classes 3. Sports Clubs (LA Fitness) lots of equipment and some classes and amenities 4. Country Club Style (Lifetime Fitness) classes, equipment, shops, childcare all together. -Fasting growing segment in the fitness sector is studios because of the low bar for entry. -Typical user: Female, above average income, Education Attainment: Associate’s Degree or Higher, 36% are 34-55 years old. -Usage is countercyclical to most retail/anchor sites. People peak use at fitness facilities is M-Th, while peoples peek use at retail is F-Su. -Fitness centers tend to take peoples dinner prep time, thus they synergize well with grocers and fast casual restaurants. -59% of studio members also maintain a general health club membership like an LA Fitness. -Site Criteria: Convenience is most important, traffic counts 25,000+ ADT, Excellent access and ample parking, Minimum population of 60,000 to 70,000 within 10 minute drive time (typical 3-4 miles in suburban setting), 32,000 to 40,000 SF building -LA Fitness wants to open/build 30 to 35 new buildings in the US in 2017 Development Inquiry Update March 6, 2016 Page 3 -60% of stores are in-fill or prebuilt buildings. Want prime locations don’t care about age of building. -Typical LA Fitness creates 45-55 jobs with very few minimum wage positions -They want to see an income per capita $20,000 (want higher density) to $40,000. In a Snap taping, January Taped a segment for February providing update on businesses 25, 2017 and the BR&E status. Primrose School, 6927 They submitted a building permit on 1/26/17 for the Pine Arbor Drive construction of a new building. The permit is valued at 1.3 million. In February they submitted revised plans to address building code corrections. Plans are be reviewed for code compliance. Cub Foods, 8690 East They submitted a building permit on 12/28/16 for interior Point Douglas Road renovation and the addition of a drive-thru pharmacy lane as well as the addition of exterior landscaping the permit is valued at $789,650. Cub is currently working on the renovations. NTB, 8647 East Point National Tire and Battery Service Center (NTB) acquired and is Douglas Road rebranding the former Midas. They have begun interior renovations and exterior painting. NTB will need to submit a landscape plan because they removed all existing landscaping during exterior painting. Furber Farm and Event They submitted a building permit for a 1,728 square footage Center, 7310 Lamar addition for a catering kitchen. A permit was issued on 1/24/17 Avenue and valued at $45,000. The catering kitchen is complete. Mathnasium-The Math They have applied for an interior renovation permit for the Learning Center space located at 7430 80th Street, Suite 104. A ribbon cutting will be planned after all remodeling work is completed. Bella Pizza, 7155 80th Is finalizing interior renovations and hope to have a ribbon Street, Suite 160 cutting scheduled shortly for their re-grand opening. Ribbon Cutting, January Burggraf’s Ace Hardware at 6990 80 th Street, held a grand 30, 2017 opening ceremony was on Monday, January 30th. Washington County Econ. Attended the monthly work group that is working to establish an Development Work Group, economic development plan for the County. The plan has been February 1, 2017 completed and will go before the County Board for approval. Chris Eng, Washington County Economic Development Director will present the plan to Cottage Grove’s EDA in the coming months. Ehlers Public Finance I attended sessions on understanding Minnesota’s property tax Seminar, February 2-3, system, two sessions in tax increment that went further in 2017 depth on the types of districts available, the process for creating a district, and eligible uses. The second session discusses the physical standards and inspection process for creating a redevelopment district. The session also reviewed the development agreement and items to consider in negotiating the agreement. Additional sessions included a developer’s roundtable in which feedback was given on six Development Inquiry Update March 6, 2016 Page 4 sites in the Twin Cities including our industrial park. The developers shared that they believe our park is an owner occupied park and that due to us being at what they termed the end of the distribution line. Most want to be centrally located within their distribution route. All the developers commented on that they were familiar with the industrial park and for those who have worked with the City of Cottage Grove in the past spoke highly of the City and stated that they have found the City to be business-friendly and willing to work with the end user on their needs. Ribbon Cutting, February State Farm Insurance - Chauncey Charlson. Had a ribbon 9, 2017 cutting at 7155 Jorgenson Lane South, Suite 100 in Almar Village. Hy-Vee Human Resources Working with their HR Group to find interview space for their Group hiring. Looking for space for a 12 week period that is available 7 days a week until 7:30-9 p.m. on some nights. I have given them many spaces such as River Oaks, Armory, School District Program Center, Washington County Service Center, Youth Services Bureau building, etc. and churches. The difficulty for many of the spaces is the 12 week timeframe, since these locations operate businesses and other programs and events in the spaces as well. Meeting with DEED A meeting with workforce staff, Chris Eng, Economic Workforce and Washington Development Director of Washington County and Matt Wolf, County, February 17, 2017 Economic Development Assistant met to discuss how we could forecast job needs for businesses such as 3M. We discussed the BR&E process as well as sharing the City’s 3M staff contact information with workforce staff. Meeting with Katie Nelson Met with Katie to discuss the approval of the brew pub/tap with the Bulletin, February room ordinance as well as the food truck ordinance and that 21, 2017 this has positioned the City for growth. Meeting with the owner of Jennifer Levitt, Community Development Director/City Jamaica Square, February Engineer, John McCool, Senior Planner and I met with the 21, 2017 owner of the retail center to discuss parking requirements for restaurant type uses. Currently the site does not meet the needs of the proposed tenant parking staff is working with the owner on potential shared parking agreement with adjoining businesses and reevaluating the sites parking needs. Commercial Inspection Went on commercial inspections with the City Building Official, visits, February 23, 2017 Bob LaBrosse to meet additional business owners and to see the status of multiple commercial projects. In A Snap taping, February Taped the March episode of In A Snap that provides a status 23, 2017 update on Junction 70 Grill, Bella Pizza, and updating the community on two upcoming Chamber events; Chamber Job st Fair on March 31 and the Spring Business Showcase on April nd 22. Development Inquiry Update March 6, 2016 Page 5 Ribbon Cutting, March 1, The Healing Place located at 8617 West Point Douglas Road, 2017 Suite 140 held a ribbon cutting for the grand opening of their new location which accommodates their business growth. Meeting with Ben Granley, Chris Eng, Economic Director of Washington County and I met Werner Electric, March 6, with Mr. Granley to express our appreciation of him locating his 2017 business in Cottage Grove but to also discuss workforce and transit needs for Werner. Ribbon Cutting, March 6, Carbone’s Pizzeria located at 7155 Jorgensen Lane completed 2017 a major interior expansion and held a ribbon cutting to celebrate the restaurants expansion. Chamber Board meeting, The Chamber Board held there monthly meeting and March 9, 2017 conducted a planning session to discuss their continued growth.