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HomeMy WebLinkAbout2017-10-10 PACKET 04.01. Development Inquiry Update To: Honorable Mayor Bailey and EDA Members From: Christine Costello, Economic Development Director Date: October 5, 2017 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action Meeting with Broker John Mr. Rausch came in to discuss 7552 West Point Douglas Rausch, June 15, 2017 Road (13 acres). In 2011 the site received site plan review and conditional use permit to allow approximately 237,778 square feet of storage condominiums. Construction did not take place and the time lapsed on the approval of the conditional use permit. Mr. Rausch will be reapplying for the site plan review approval and conditional use permit. In a Snap, June 20, 2017 Taped the July episode which included updates on Norris Square, Legends of Cottage Grove, Primrose and Mathnasium. DEED Workshop, June 26, Attended a DEED workshop on current efforts and future 2017 strategies, including the development of a state workforce dashboard and employment equity policies. East Metro Strong, June 11, Attended their monthly meeting to represent Cottage Grove 2017 on transit interests in the east metro area. Meeting with Gerry Herringer, Update on the status potential development with the land July 11, 2017 owner of the Shoppes at Cottage View. Meeting with HAF Architects, Meeting to discuss hotel development at 7855 Harkness July 11, 2017 Avenue. Final BR&E Workshop, July Final workshop to discuss/develop priorities to come out of 12, 2017 the BR&E interviews and final results Washington County CDA City Administrator Stevens and Economic Development Board Meeting Director Costello attended the board meeting to share with the CDA the importance of establishing a grant program for predevelopment activities. Meeting with Stantec, July Began the AUAR process for the business park area. 20, 2017 Ribbon Cutting, July 25, 2017 Mathnasium ribbon cutting was held at 7430 80 th Street, Suite 104 Washington County Econ. Attended the monthly work group that has established an Development Work Group, economic development plan for the County. August 2, 2017 Meeting with Comcast, Community Development staff met with Comcast to discuss th August 2, 2017 the extension of fiber on 95Street in the business park. A result of conversation with businesses during the BR&E process Development Inquiry Update October 4, 2017 Page 2 Ribbon Cutting, August 3, Cub Foods ribbon cutting was held at 8690 East Point 2017 Douglas Road. In a Snap, August 7, 2017 Taped the August episode which included many new businesses ribbon cutting including Junction 70 and Hy-Vee. Ribbon Cutting, August 8, Hy-Vee grand opening and ribbon cutting was held at 7280 2017 East Point Douglas Road. Ribbon Cutting, August 10, Junction 70 ribbon cutting was held at 6933 Pine Arbor 2017 Drive. Open to Business Hours, Open to Business hours held at Cottage Grove city hall August 16, 2017 began from 9 am to 1 pm. The first and third Wednesday of every month. Groundbreaking, August 22, Norris Square held their groundbreaking for the addition of 2017 two new building at 8200 Hadley Avenue. Open to Business Kick-Off Washington County held a kick-off event for local businesses Event, August 23, 2017 in the area to hear about the services that Open to Business offers. Twin Cities Business Washington County had an article in the magazine which is Magazine Release Party, read by many real estate professionals in the Twin Cities. A August 24, 2017 PDF of the article is attached. Appreciation River Cruise Held second appreciation cruise. Invites included elected Luncheon, September 12, officials, businesses that participated in the BR&E, brokers, 2017 developers, and land owners. Webinar, September 13, A webinar on MN data center attraction and growth effects. 2017 Chamber Board of Director’s The Chamber Board held their monthly meeting. Meeting, September 14, 2017 St. Paul College Tour, Chris Eng, Washington County Economic Development September 14, 2017 Director, Matt Wolf, Economic Development Assistant, and Economic Development Director Costello toured St. Paul College to learn what tech and certificate programs they had and partnerships with various industries in the area. This served as a gathering session for workforce strategy related to the BR&E priorities. Introduction Meeting, The St. Thomas SBD Center visited with staff to introduce September 20, 2017 their services and how they can be of assistance to local businesses. Met Council Mobile Tour and Economic Development Director Costello attended a mobile Discussion, October 5, 2017 tour that provided an opportunity to have a conversation with manufacturing facility owners to discuss in depth challenges and opportunities that are seen within the ever-evolving manufacturing industry. Ribbon Cutting, October 5, York Law Firm ribbon cutting was held at 8617 West Point 2017 Douglas Road Ribbon Cutting, October 5, T-Mobile held a one-year anniversary ribbon cutting at 8711 2017 East Point Douglas Road SPECIAL REPORT St. Croix Crossing By Gene Rebeck hances are you’ve spent some quality time in one of its attractive, historic cities, including Afton, Stillwater and Marine on St. Croix. Or perhaps you’ve picked apples at Pine Tree Apple Orchards, drifted down the St. Croix River past Bayport, or met with friends for dinner at one of Wood- bury’s excellent restaurants. And you likely never thought, “Wow—this is Washington County?” Leaders from the county as well as 33 of its cities have come together to change that—particularly when it comes to business leaders, commercial real estate devel- they employ. “From a diversity of options perspective, it’s all right here—in more than one way,” says Chris Eng, economic development director of the Washington County Com- munity Development Agency. “When it comes to property, large parcels of land this close to the downtowns and the airports anywhere else \[in the greater Twin Cities nine- county metro area\].” Washington County also has numerous health care businesses, manufacturers, and logistics and transporta- tion companies, plus several craft breweries and apple orchards. There is an intriguing mix of niche businesses, including a maker of steel horseshoes and two venues Section sponsored by offering old-fashioned barn weddings. The county is also remarkably varied in terms of terrain. Its 423 square miles encompass 468 lakes of 10 55 SEPTEMBER 2017tcbmag.com TWIN CITIES BUSINESS SPECIAL REPORT | WASHINGTON COUNTY SCANDIA Washington County’s Great Outdoors FOREST LAKE Histroric Washington County Located along the St. Croix, the popular metro-area MARINE ON Courthouse located ST CROIX in Stillwater. hiking opportunities that wind through remnant oak HUGO forests, savanna and prairie. Belwin Conservancy DELLWOOD more than 1,400 acres of land in West Lakeland and , just south of Interstate 94. It also hosts youth sports and provides nature-based learning MAHTOMEDI STILLWATER opportunities to more than 10,000 students each year. OAK PARK HEIGHTS Big Marine Park Reserve BAYPORT Just west of Marine on St. Croix is Big Marine Lake, LAKE ELMO Washington County the lake’s southern end provides a large playground, OAKDALE swimming beach, picnicking areas, a boat launch and in Minnesota for overall quality of life Public SchoolsA+WOODBURY AFTON Crime and SafetyB Once the current renovations are completed next neighborhood spring, this 520-acre park ratings website NightlifeA- surface hiking trails through an oak woodland. COTTAGE GROVE Niche, with the DiversityB following scores: Carpenter Nature Center Good for FamiliesA+ 725 acres of wildlife habitat along the St. Croix River and provides HousingA- hands-on, nature-centered learning to more than 20,000 K-12 youths each year. It’s also home to the Flint Hills Trailside Lodge and Conference Center, Gateway and Browns Creek state trails 18-mile Gateway State Trail connects with the Browns Creek State Trail, which runs nearly 6 miles before terminating in in the south, riverside settings along the businesses employ 20 or fewer people. St. Croix River and the wooded settings Most of the county’s communities Lake Elmo Park Reserve of Scandia and May townships. “At 4:30 have their own economic development 20 miles of rolling trails that wind through 2,200 acres of oak p.m., you can be on the slopes, on the wa-director or city administrator to help forests, prairie, wetlands and lakes. Other recreational opportunities include camping, swimming, ter, hiking, mountain biking or enjoying businesses settle there and grow. Their some of the best parks in the world. It’s - fantastic for attracting talent,” Eng says.tive character. Woodbury is the county’s William O’Brien State Park 12 miles of hiking and skiing Despite its diverse appeal, there’s one bustling suburban center for health care , including the self-guided Riverside Trail along the St. Croix. thing that the county hasn’t been good at: and retail. Afton is small and bucolic. marketing itself. In June 2016, the Wash- Stillwater has its picturesque downtown Square Lake County Park ington County Community Development and vigorous retail activity. Newport, St. Located north of Stillwater, this publicly accessible lake is popular for its swimming beach, Agency was launched by the county’s Paul Park, Hugo and Forest Lake have nu- Housing and Redevelopment Authority merous industrial businesses along with a to do just that. The agency hired Eng, who small-town feel. served as executive director of the Duluth “We’ve worked hard to identify com- Economic Development Authority from mon goals while respecting the rights of 2012 to 2015, to take charge. communities to be themselves,” Eng says In July, Eng’s agency rolled out a of the countywide agency. “There’s real program called Open to Business. It’s strength in our diversity, and we’d lose that designed to help entrepreneurs with their if we set out with the goal of creating 33 similar communities.” In addition, “there’s a shared recogni- The program also can provide direct tion that when one community wins, loans to early-stage businesses. “If we can we all win,” Eng says. “A business that help our 18,000 non-employer busi- chooses to locate in Oakdale might hire nesses add just one job, that’s potentially an employee who buys a house in Lake 18,000 new jobs,” Eng says. And smaller Elmo and does most of their shopping in Woodbury. There isn’t one winner and in Washington County: 86 percent of its two losers there. There are three winners.” 56 TWIN CITIES BUSINESStcbmag.com SEPTEMBER 2017 SPECIAL REPORT | WASHINGTON COUNTY So what makes the east metro fertile asking, ‘What can we do to make business ground for growing business? For one, better?’ ” the county has “a strong, well-educated Still, Washington County has its pool of labor here to help businesses challenges. Approximately 100,000 people grow,” says Marc Cove, founder and pres-commute outside of the county’s bound- ident of Oakdale-based Platinum Bank. aries to work each weekday. While that’s There’s also plenty of space to expand not necessarily a bad thing—one of the and room to park, and it’s easier to work county’s selling points is its quick access to with local government. “You don’t view both Twin Cities downtowns—Eng and the city and the county as an adversary—the communities want to create more em- they’re partners. They’ve done a very ployment opportunities within its borders good job building a regional economic to make life easier for those individuals, framework to allow you access to services, while allowing the county and its various access to space, access to talent,” says cities to generate more tax revenue. Even though the county has plenty of be successful,” he adds. “They’re always highway access to interstates and major POPULATION CHANGE, 1950-2015 MINNESOTA 5,489,594 5,303,925 WASHINGTON COUNTY 4,919,479 4,375,099 4,075,970 3,804,971 251,507 238,136 3,413,864 Marine on St. Croix 2,982,483 201,130 highways like Minnesota 36 and U.S. 61 145,896 113,571 and 10, county residents’ biggest concern 82,948 52,432 is the lack of public transportation. 34,544 Workers and residents would like to rely less on their own cars to get to and from work and to St. Paul and Minneapolis. Washington County has three pro- 196019902010 1950198020002015 posed bus and rail transit corridors: the 1970 SOURCE: U.S. CENSUS BUREAU Rush Line Corridor, the Gateway Corridor and the Red Rock Corridor. There’s an opportunity to promote and participate in transit and transportation corridor plan- ning efforts and to advocate for state and PER CAPITA INCOMES federal transportation and transit invest- ments in the east metro, according to Eng. Another challenge the county is fac- ing is maintaining a sense of community for the increasing percentage of people MINNESOTA $31,642 over 65 years of age, while attracting ANOKA CO. employers and young talent who will $31,474 work, live and stay there. Then there’s the struggle of how to keep small-communi- CARVER C0. $38,638 ty values, charm and appeal while grow- ing their economies. That’s a challenge DAKOTA CO. $35,755 Eng considers when he provides a point of contact for site selectors and develop- HENNEPIN CO. $38,125 ers. “With one call, a site selector can call me, and I can unlock the opportunities RAMSEY CO. $30,076 that exist within 30 different communi- ties here,” he says. SCOTT CO. $35,690 It’s those types of efforts that has companies giving Washington County a WASHINGTON CO. $37,841 close look. SOURCE: AMERICAN COMMUNITY SURVEY 58 TWIN CITIES BUSINESStcbmag.com SEPTEMBER 2017 Woodbury “We’re sort of the economic hub of the east metro,” says Janelle Schmitz, assistant community development director for the City of Woodbury. It might sound as though she’s bragging. But she can back up her assertion. This year, Woodbury is celebrating the 50th anniversary of its incorporation, and its population already exceeds 70,000 people. It’s not by accident. Early Woodbury leaders saw the potential for a thriving community that included residential, commercial and industrial opportunities. Its commitment to long term and strategic planning has laid the foundation for remark- quarter of 2017, Woodbury was home to about 27 percent of the county’s nearly 80,000 jobs. Many of those positions are in the city’s 190- plus health care-related businesses, including clinics and several new orthopedics facilities. HealthEast, anchored by its Woodwinds Health Woodbury Lakes shopping center Campus, has about 900 employees in Wood- 59 SEPTEMBER 2017tcbmag.com TWIN CITIES BUSINESS SPECIAL REPORT | WASHINGTON COUNTY bury, making it the city’s largest private employer. Making the Move to Woodbury Schmitz believes that the opening of HealthEast’s campus in 2000 set the stage for the city’s continued health care growth. Self Esteem Brands LLC, whose best- Nearby Maplewood-based 3M Co. is another known division is the Anytime Fitness large employer, with about 500 employees in its chain, was based in Hastings for - several years before moving to a more ing Co., which produces custom metal assemblies spacious site in Woodbury in 2016. for military, medical and technology customers, Despite its convenient location Chuck Runyon, CEO, Anytime Fitness employs nearly 200. One of Woodbury’s newest at the corner of interstates 94 and businesses is Self Esteem Brands, which owns Any- 494/694, the property had been for time Fitness. The company moved its headquarters sale for at least a decade before the 80,000-square-foot building. It to Woodbury last year, and has big expansion plans who come to Self Esteem Brands' (see “Making the Move to Woodbury”). have been because the land had only Runyon summarizes as inside headquarters for two-week training That business-sector diversity is just the way 9 buildable acres—the rest is mostly Woodbury likes it. “We have consistently worked to wetlands. But those wetlands were site provides a 1-mile walking and are quicker, and there are plenty of build and nurture relationships with our business jogging path for the more than 200 hotels both near the airport and in community, and the result is the vibrant commu- Runyon and his business partner, employees who work there. Woodbury, as well as restaurants and nity you see today,” says Schmitz. company president Dave Mortensen. shopping. Woodbury’s location on interstates 494 and 94 “It was perfect for us, though I don’t Today, there are more than has also positioned the city for further growth, al- know how perfect it would be for 3,600 Anytime locations in all 50 lowing it to serve as a conduit between the Twin Cit- other employers,” Runyon says. states and nearly 30 countries, and ies and Wisconsin. "Our geographic advantage has For Self Esteem, the property the company has plans to open 400 contributed to our economic success," says Schmitz. is more than a place to build an location also is more convenient for "We now have 23,000 jobs, and we're still growing." 60 TWIN CITIES BUSINESStcbmag.com SEPTEMBER 2017 In Washington County, it’s called “the Loop”—the circle of interstates whose eastern edges are 494 and 694. To be in the Loop, or at least on just the outside, is con- sidered prime corporate real estate. While these three cities Ten years ago, Werner Electric was are a little outside the Loop, they are still home to numerous bursting at the seams of its Minneapolis thriving and distinctive businesses. headquarters. Needing a new location, “There is an advantage to being outside \[the Loop\]”, says company president Ben Granley Christine Costello, Cottage Grove’s economic development “interviewed” 10 cities. Most turned the director. There’s less congestion, and land prices are generally more affordable. Cottage Grove is the largest of the three cities, with a come here,” Granley says. population of more than 35,000. Among the city’s large Founded in the 1920s, Werner is a distributor of electrical and energy equipment and components to employers is 3M Co., which has a signage, R&D and manu- facturing facility in the southeastern end of town. Bayport- industrial automation. Over 50 percent of its business is in industrial automation for customers in the packaging, based Andersen Corp. also has a manufacturing facility in food processing, oil and gas, and medical device industries. Cottage Grove. “We feel we have a strong manufacturing base, and we want to expand it,” city administrator Charlene Stevens says. The city also is working to expand retail—a new Hy-Vee supermarket will soon open at 80th Street and Pt. Douglas Road. in the right direction.” Cottage Grove is also home to a variety of distinctive busi- 61 SEPTEMBER 2017tcbmag.com TWIN CITIES BUSINESS SPECIAL REPORT | WASHINGTON COUNTY nesses, including American Business Group, 1902, still stands on her a distributor of livestock feed and pet food company’s grounds as that also supplies logistics and warehousing its headquarters. Of the services. Up North Plastics manufactures company’s roughly 500 full-time employees, in its 400,000-square-foot Cottage Grove about 300 work in Min- plant. Remarkably, the city also is home to nesota. two venues for “barn weddings” and other Several niche busi- festive events. Both the John P. Furber Farm nesses are also well estab- and the Hope Glen Farm “take advantage of lished in Newport. One our natural scenic landscape,” Stevens says. is Newport-St. Paul Cold Still, Stevens and Costello want to Storage, whose facility attract more companies. Cottage Grove includes 4.45 million recently updated its strategic plan to focus 3 to 50 acres, in its business park. country, notably Oregon and Illinois, to cubic feet of space for storing frozen and more intensely on business retention and Cottage Grove’s smaller neighbors, extend its growing season. While most refrigerated food. expansion. According to Costello, city gov-Newport and St. Paul Park, both hug of its business is in the Midwest, it sells “We deal with both Fortune 500 and ernment wants to help ease the permitting the shores of the Mississippi. Like Cot-plants throughout the country and also privately owned food producers in the re- and approval processes for business. The tage Grove, both emphasize their home-has overseas customers.gion—local food manufacturing compa- city recently partnered with the University town atmosphere. nies, mostly in Minnesota, Wisconsin and of Minnesota to interview 40 businesses Newport is the home of Bailey Washington County because it continues Iowa,” company president and CEO Drew Nurseries Inc., one of the country's largest Greenberg says. Clients tap Newport needs are and how the city can better work -strong workforce that it can draw from. Cold, founded in 1959, to warehouse their with them. (The report is expected to be nesses. Bailey Nurseries operates growing “We have a lot of connection to this area,” inventory and to export products to their released in the fall.) The city also is working facilities in several counties in the state, says company president Terri McEnaney, customers via truck or rail. Like other to develop shovel-ready sites, ranging from and has sizable operations across the whose family’s original home, built in businesses in the area, Newport Cold uses 62 TWIN CITIES BUSINESStcbmag.com SEPTEMBER 2017 commercial construction projects are proposed or underway. Projects include the U.S. The sale includes the SuperA- merica fuel and convenience store chain, structure in the southern part of town, which St. Paul Park supplies gasoline to. which is scheduled to be completed Several other longtime businesses by the end of the year, and a 42-unit continue to thrive here, such as Total workforce apartment project that opened Mechanical, a mechanical and HVAC in August. The Red Rock Village project, construction and service company that which would comprise 126 homes, a supermarket, a restaurant and an client base is in the central to east metro underground parking garage, is in the area, and includes Metropolitan Council- conceptual stage. owned wastewater plants. It also special- Like Newport, St. Paul Park is es- izes in ice-rink construction, a business sentially built out, with little room to that is nationwide. izes in packaging for hazardous materials; grow, so most of its opportunities will Five years ago, Total Mechanical operate in Newport and St. Paul Park.Warehouse Shell Sales, founded in 1939, have to come from redevelopment, says added on to its current location, which “We ship out in excess of 360 million which distributes oyster shells used in city administrator Kevin Walsh. now comprises 6,500 square feet. “The pounds a year,” Greenberg says. “And as poultry feed; and Metropolitan Gravel, St. Paul Park’s largest private employ-whole area is thriving right now, and has our customers grow, we have to grow.” a trucking and truck-maintenance com- been for a while,” says Total Mechanical This year, Newport Cold is adding nearly pany that transports aggregates to road since 1939, making it the state’s oldest. president Bruce Pylkas, who is a former 54,000 square feet to its facility. When the builders, as well as moving other heavy president of the Cottage Grove Area work is completed this month, the facility goods and commodities. which owned the facility, was acquired Chamber of Commerce. Even with the will cover 280,000 square feet. While Newport is fairly built last year by San Antonio-based Tesoro three communities’ historically high oc- Other niche Newport businesses out, according to city administrator cupancy rates, he adds, there’s still more include Ten-E Packaging, which special-Deb Hill, several new residential and make Tesoro, which is changing its name developable space available. 63 SEPTEMBER 2017tcbmag.com TWIN CITIES BUSINESS SPECIAL REPORT | WASHINGTON COUNTY Forest Lake and Hugo Located on the northern edge lockers and storage for the athletic, of the county, Forest Lake has prospered in a location that serves as among others. WDI Inc. crafts stylish something of a gateway between the wooden packaging and promotional metro and northern Minnesota. Since items, including humidors, food 2000, its population has boomed, containers and displays. And St. Croix from a shade over 14,000 to more Forge Inc. produces steel horseshoes than 20,000 today. for the riding and racing markets. What’s helping drive the growth One of the city’s largest pri- is its close proximity to the junction vate employers is Teamvantage, a of interstates 35E and 35W, which custom manufacturer and injection provides easy access to both major molder for the medical and aerospace downtowns, as well as to employees industries, among many others. In living both north and south of the 2013, Teamvantage moved into a new city. Plus, Forest Lake has numerous 111,000-square-foot facility that is lakes, nature preserves and trails. “We triple the size of its previous Forest still maintain a small-town feel \[with Lake plant. Its sister company is Forest a\] traditional downtown area,” says Lake-based Custom Mold & Design. Dan Undem, assistant to Forest Lake’s As the city grows, Forest Lake city administrator. is looking to add more businesses Forest Lake has some of the most to its stable and help facilitate and distinctive manufacturing businesses streamline the permitting process, in the Twin Cities metro area, with Undem says. companies like Themed Concepts, Like Forest Lake, the city of Hugo is which makes whimsical playground full of natural resources and environ- mental amenities, says city adminis- concrete constructions for zoos, trator Bryan Bear, who describes his amusement parks, resorts and other city as “an urbanizing landscape in a venues. There’s GearGrid Corp., rural setting.” Along with manufactur- which manufactures custom steel ing and distribution businesses, there Blending the Old With the New Manomin Resawn Timbers, based help during the summer) work in a in Hugo, is a 19-year-old company 28,000-square-foot facility in a Hugo industrial park, where it has been houses and factories—“primarily located for 12 years. “We’re close to barns right now, because that’s the Twin Cities, but far enough away where the trend is,” Manomin so that the costs of our operations owner Sarah Londerville says. Manomin mills the old wood, would be in St. Paul or Minneapolis, removes the nails, treats it to remove any insect infestation, then makes it easy for the several trucks that come in and out each day. and related products that are stylish Manomin’s customers include and full of character. “Right now, homeowners, builders, remodelers reclaimed wood is all the rage,” and restaurants. While most are Londerville says, adding that the located in Minnesota and Wisconsin, company’s 2016 revenue was 22 percent over 2015.nationally. Manomin-milled wood Most of Manomin’s barn wood graces Ralph Lauren’s New York Appalachians are another abundant Londerville says. ”Old wood goes time employees (it hires additional with that look.” 64 TWIN CITIES BUSINESStcbmag.com SEPTEMBER 2017 North Woods Optics, both located in Forest Lake are several row-crop, dairy and horse primarily for mining equipment, farms within the city limits. There also that it ships worldwide. It employs 20 are hunting preserves and a hunt club, in Hugo and is growing by double- partly or wholly within the city limits. digit percentages. Rick Stewart, the “There are a tremendous number managing member of the partner- of \[business\] success stories in Hugo,” ship that owns the company, expects Bear says. One of the city’s newest— Loadmaster’s headcount to be close to and oldest—is Glamos Wire Products 35 within a year or two. Loadmaster Co., which makes plant supports, bas-is now planning to add up to 35,000 ket extensions and landscape staples square feet of space to its current for the lawn and garden industry, 80,000-square-foot facility. as well as custom wire forms for the Much of the company’s optimism concrete and industrial markets, and is the allocation in the 2017 legislative bale tires used for bailing recycled session of $1.5 million to repair St. boxes, paper, plastics and metal. Its Paul-based Minnesota Commercial market is mostly local, though it has Railway’s Hugo Line, which connects a national presence. The company Hugo to the big railyards in the Twin has expanded twice in the past 10 Cities. Loadmaster Lubricants and years; its current facility is now 64,000 several other businesses in Hugo de- square feet. pend on that short line for shipping. Founded in 1899, Glamos Wire is Between 2000 and 2015, Hugo’s one of the county’s older businesses. population grew from 6,363 to But as company president Paul more than 14,000, which has meant Glamos notes, it’s lucky to still be in more opportunities for service business. In 2011, Glamos Wire had entrepreneurs seeking to open restaurants or day care centers. “We out. With help from its employees, try to make sure that the regulatory vendors and customers, Glamos environment here is attractive,” says Wire has risen from the ashes, with Bear, who notes that his city has no revenue rising and its employee count business license fees. “If you come to City Hall, we’re going to try to help location has helped. “We can reach any place in North America quickly,” - for you.” Though the city occasion- pete with imports. ally offers incentives, Bear says that Another growing business is his hope is that the city has created Loadmaster Lubricants LLC, which an environment that will allow a manufactures specialty lubricants, business to thrive on its own. 65 SEPTEMBER 2017tcbmag.com TWIN CITIES BUSINESS SPECIAL REPORT | WASHINGTON COUNTY Stillwater, Oak Park Heights, Bayport Stillwater is, of course, renowned for its charming downtown. The Highway 36 corridor is a retail center, and will likely become more prominent with the recent completion of the St. Croix Crossing bridge. The new bridge should make downtown Stillwater an even more ap- pealing destination, as it will reduce the the old downtown lift bridge. Stillwater has a business park that includes a brewery and health care service providers, but city administrator Tom McCarty makes it clear other opportu- nities exist for companies to establish themselves here. There are other pockets in the city that are available as business campuses for research facilities or health care organizations, McCarty says. One distinctive health care business Downtown Stillwater already making its mark in Stillwater is 66 TWIN CITIES BUSINESStcbmag.com SEPTEMBER 2017 DiaSorin Inc. Last summer, the U.S. Department of Health and Sara Hayden’s Famous Tipsy Pies Human Services awarded the company a $2.6 million contract to develop a test for more Washington County is home to numerous businesses founded decades quickly diagnosing the Zika ago. But it also has proven fertile ground for entrepreneurs creating virus. The virus is transmitted distinctive, even surprising, products and services. primarily by mosquitoes, and it’s Take Sara Hayden, for instance. About a decade ago, she was particularly dangerous to preg- looking to earn some money for her family’s household—and have nant women since it can cause something that she could do that was her own. “I never thought in my birth defects. It’s endemic in the wildest dreams I would run a business,” Hayden says. Caribbean and Latin America, Hayden incorporated Rustic Pies of Stillwater LLC in 2012. But to but there have been a few cases her growing coterie of fans both locally and nationally, her wares are in the U.S. DiaSorin SpA has its headquarters in Italy, but opened them “tipsy” are the small quantities of Minnesota-made alcoholic its American outpost in Stillwater. South of Stillwater, the communities of Oak Park Heights and Bayport are anchored by Andersen Corp. Andersen's Park Heights, while its plant-producing windows and doors manufacturing PETE CROUSER facility and R&D center are located in interest of people stopping by,” says Hayden. To help pay rent, Hayden is sharing her kitchen with two startups: a baker of Bayport. The company currently employs approximatley 3,000 people in Washing- ton County. tcbmag 67 SEPTEMBER 2017tcbmag.com TWIN CITIES BUSINESS TO: Economic Development Authority FROM: Jennifer Levitt, Community Development Director/City Engineer Christine Costello, Economic Development Director DATE: October 4, 2017 RE: Development Update Building Permits Building Permit Statistics: Between September 1 and September 30, 2017, there were 350 building permits issued with a total valuation of $46,494,991, including 5 new homes valued at $1,612,913 and 26 commercial permits with a valuation of $40,571,220. As of September 30, 2017, a total of 3,097 building permits have been issued with a total valuation of $116,978,957. There were 309 commercial permits valued at $73,274,087 and 81 new residential homes with a valuation of $25,165,325. Commercial Permit Valuation Comparison By Month 2016-2017 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 JanFebMarAprMayJunJulAugSepOctNovDec 2017 Valuation2016 valuation Economic Development Authority Development Update October 4, 2017 Page 2 of 13 Commercial/Industrial Construction Activity 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 199719981999200020012002200320042005200620072008200920102011201220132014201520162017 yearpermitsvaluationLinear (permits) Residential Permits -New construction 1996 to 2017 350 300 250 200 150 100 50 0 199520002005201020152020 Economic Development Authority Development Update October 4, 2017 Page 3 of 13 Current Project Updates Building Permit Statistics: Between September 1 and September 30, 2017, there were 350 building permits issued with a total valuation of $46,494,991, including 5 new homes valued at $1,612,913 and 26 commercial permits with a valuation of $40,571,220. As of September 30, 2017, a total of 3,097 building permits have been issued with a total valuation of $116,978,957. There were 309 commercial permits valued at $73,274,087 and 81 new residential homes with a valuation of $25,165,325. Norris Square Project: At the Independent Living facility, perimeter footings have been completed and foundation walls are now being constructed. The perimeter footings are being installed for the Care Center. Site grading and preliminary utility construction began the week of August 7. The developer plans to have building construction complete by fall 2018. Legends of Cottage Grove: The exterior siding, soffit, fascia, and roofing have been completed. Economic Development Authority Development Update October 4, 2017 Page 4 of 13 Central Fire Station: The exterior brick, roof, and site utilities are being completed. The interior floor slabs have been poured and framing is being constructed along with interior plumbing, heating, and electrical. The project is scheduled to be substantially complete by May 2018. Exterior finishes and interior framing are ongoing. Site utility installations are nearly complete with concrete curb and gutter and asphalt pavement scheduled to begin in early October. Central Fire Station – Northeast Elevation Central Fire Station – Southeast Elevation Oltman Middle School: Building construction continues to progress with the erection of steel and pre-cast wall panels. The contractors are work- ing on exterior sheathing, brick, stone, and roofing. The interior under- ground plumbing and electrical is nearly complete. Once the roof is fin- ished, they can begin drying out the soil to start pouring the concrete floor. The contractor plans to have the building enclosed by the end of 2017. Bid Package 4 will be coming in for review soon and will include an accessory storage building and drop-off canopy. The first lift of asphalt pavement at the bus lanes, fire lane, and parking lot was com- pleted the week of August 7. Utility connections and site grading are mostly complete. All remaining storm sewer and site grading work was completed in September. The building is scheduled to be complete prior to the beginning of the 2018-2019 school year. Oltman Middle School – Site Plan Oltman Middle School – Looking East from 66th Street and Goodview Avenue Economic Development Authority Development Update October 4, 2017 Page 5 of 13 Cottage Grove Middle School Addition: The additions are constructed and the roof is complete, while brick is continuing to be set. The project is on schedule to have all exterior site work completed by snow fall. Primrose School: All interior drywall and painting are being completed. The exterior brick and façade work is complete with sidewalks being poured. Ecoplexus Solar Project: The permit has been issued with site grading and silt fencing currently being installed. Borner Solar Project (9105 Lamar Avenue): The permit has been submitted and is currently being reviewed. The construction value for the entire project is $4,300,000. Safe Routes to School: Construction on this Washington County project began in early August 2017 and was installed in two phases. This project included the extension of the walking trail along Hinton Avenue and 65th Street and the addition of a walking trail from Indian Boulevard to 80th Street along CSAH 19. The trail along Hinton Avenue was completed the week of August 21. Construction of the trail along CSAH 19 began the week of August 14. The contractor placed asphalt pavement and installed pedestrian curb ramps the week of September 25. The project is scheduled to be substantially complete by the end of September. 65th Street looking east at elementary school CSAH 19 looking south at Indian Boulevard entrance Economic Development Authority Development Update October 4, 2017 Page 6 of 13 Belden Lift Station: This project includes the expansion of the City’s wastewater lift station located adjacent to the Youth Service Bureau. The project was awarded to Pember Construction at the April 5 City Council meeting. The project was delayed due to a required relocation of an Xcel Gas transmission line. Work on the project started the first week of September, with the realignment of a City water main to allow for the placement of the new lift station vault. Following the water main work, the new lift station vault was installed. This additional vault increases the storage volume, reducing the pumping frequency of the lift station. This project is scheduled to be completed in October. New Vault Cover 2017 Pavement Management Project: This project began the first week of May. The Jamaica Ridge Neighborhood is substantially complete. The Rolling Hills neighborhood began in early July. The final lift of asphalt pavement was placed in the Rolling Hills neighborhood on September 5. The assessment hearing for the project was held at the City Council meeting on October 4. 65th Street, Geneva Avenue, and Oltman Middle School Improvements: Utility work on 65th Street began the week of September 4 and is scheduled to be completed the first week of October. The contractor is also currently working on the roadway subgrade and alignment for the new roundabout at 65th Street and Goodview Avenue. Construction is scheduled to be complete by the first week of November. 66th Street – Looking East to Goodview AveGoodview Ave at 65th Street – Looking North 65th Street, Geneva Avenue, and Oltman Middle School Improvements – Project Overview Economic Development Authority Development Update October 4, 2017 Page 7 of 13 Inclusive Playground – Woodridge Park: Construction of the new inclusive playground at Woodridge Park started in May 2017. During the month of September, the final landscaping, storm sewer, and restoration work was completed. The City celebrated the ribbon cutting on September 26. Villas of Hidden Valley: The Villas of Hidden Valley project includes 19 single family lots by MJR Developers with home construction by Custom One Homes and is located off of Harkness Avenue south of 70th Street. Sanitary sewer and water main installation was completed in mid-July, with storm sewer and street work completed August. Work continued with sidewalk and street lighting in September, which is planned to be completed in October. Construction on two model homes started in the early August, with four homes currently under construction. New Home Construction at Lot 19 Calarosa 1st Addition: The Calarosa 1st Addition includes the development of 71 lots for single and multi-family homes by Lennar and is located on property east of Pinecliff 5th Addition, south of the Woodbury border, north of 65th Street, and west of Inwood Avenue. Site grading began the week of August 14 and utility installation the week of September 11. Part of the project requires the installation of utilities under Ideal Avenue, from 65th Street to 63rd Street. The rural section of Ideal Avenue will also be upgraded to a standard urban section with curb & gutter, sidewalk, and streetlights. This Economic Development Authority Development Update October 4, 2017 Page 8 of 13 development includes 12 quad style buildings with 48 units and 23 villa-style single family homes. Model home construction may begin as early as late November and continue through the winter. Ideal Avenue Looking North Ideal Avenue and 62nd Street Looking South 65th St. and Idsen Ave. Looking Northwest Grayson Meadow: D.R. Horton is developing Grayson Meadow, which includes 45 lots for single family homes located on an extension of Jeffery Avenue north of the Cayden Glen development. Public utilities have been installed and are complete. The streets have been constructed, and the first lift of asphalt pavement has been placed, with private utility installation completed in July. Single family home construction began in late August, with three homes currently under construction. Jeffery Avenue – Looking North 2017 Joint Street Services: As part of ongoing street maintenance within the City, Cottage Grove partners with Newport, St. Paul Park, and Denmark Township to perform crack sealing, sealcoating, and striping of the roads. The crack seal contractor completed work in July 2017. The seal coat contractor completed the seal coating project the week of August 14, and the striping contractor completed striping the week of September 11. Economic Development Authority Development Update October 4, 2017 Page 9 of 13 CSAH 22 Corridor Safety Improvement Project (70th Street): Segment 2 of this project, from Meadow Grass Avenue to Hinton Avenue, was opened to traffic on September 9. The final lift of pavement was placed on Segment 2 on September 23. Temporary striping was installed Tuesday, September 26. The contractor plans to install permanent striping by mid-October. Work in the boulevards, such as final grading and restoration, will continue into the fall. 70th St. – Looking west from Hardwood Ave. 70th St. – Looking west from Hinton Ave. CSAH 22 Corridor Safety Improvement Project Map County Highway 19 and East Point Douglas Road: The roundabout was fully opened to traffic on September 25, following the installation of striping, signage, and temporary roundabout lights. Due a fabrication delay in the roundabout lights, the permanent lights will be placed at the end of October. The roundabout will remain open during these installations.Grading work for the new park road and ravine stabilization project started in Ravine Regional Park in June and continued through the month of August. In September the majority of grading work was focused on the new park entrance off of County 19. Work on the new Ravine Lake outlet box culvert started the first week of August and was completed the last week of October. Work has also continued on the ravine stabilization project through the park, which is planned to be completed the week of October 9. The Ravine Regional Park project is scheduled to be complete by spring of 2018. CSAH19 Looking east at new turn lane for Innovation Rd looking north at East Point Ravine Pkwy Douglas Rd Economic Development Authority Development Update October 4, 2017 Page 10 of 13 Well #10: Two additional treatment tanks are scheduled to be set at the Well #10 treatment plant on October 9. Following the placement of these tanks, construction of the building will commence. Once building construction begins, enclosure of the tanks is anticipated to take two to three weeks to complete. To allow for access between the material laydown area and the well site, the right lane of westbound 95th Street has been closed and will remain closed throughout the duration of the project. Also, given the critical importance of this facility and enclosing it before extended freezing conditions, the contractor has been authorized to work on Sundays from 9:00 a.m. to 7:00 p.m. Well 10 – Looking West from 95th Street 95th Street looking east from Well 10 Well #3: The majority of the site work was completed during the month of September. Work on the Well #3 treatment plant building started on Monday, October 2. This building is smaller in size than the Well #10 building and is anticipated to take 10 days to enclose, weather dependent. Similar to Well #10, the contractor has been authorized to work on Sundays from 9:00 a.m. to 7:00 p.m. Sunday work is necessary for protection of tanks and piping related to weather concerns. Well 3 Treatment Plant Overview Well 3 Treatment Plant Access Drive Well #12: Well 12 will be located at 6411 Ideal Avenue South, south of Sunny Hill Park in the green space between the Pinecliff and Calarosa developments. The project will be constructed in two phases. Phase 1 will include the construction of the well and casing. Phase 2 will include construction of the well house and required site and utilities to bring it into service. Construction of Phase 1 was awarded to Traut Companies at the September 6 Council Meeting. Traut Companies began mobilization the week of September 25. Drilling of the new well will begin by mid-October and is scheduled to be complete by December 1, 2017. Phase 2 of the project will be advertised for bid on October 4 with bids due on October 26. Construction of the new well house may begin as early as Economic Development Authority Development Update October 4, 2017 Page 11 of 13 December 15 and is scheduled to be substantially complete and operational by May 1, 2018. The project is scheduled to be complete by July 1, 2018. Well 12 – 3D Building Rendering Well 12 Location Monitoring Well: A new groundwater monitoring well was installed in the greenspace between the Eastridge Woods, Grayson Meadow, and Cayden Glen developments. The well will add an additional level of protection for monitoring the City’s drinking water supply upstream of our municipal wells. Construction of the well and groundwater samples were taken the week of September 18. Site restoration will be complete by mid-October. Monitoring Well Drilling Equipment Monitoring Well Location Planning Division Planning Commission: At their October 23, 2017, meeting, the Planning Commission will hold the public hearing and review the applications from Park Place Storage for a site plan review and conditional use permit to allow approximately 237,778 square feet of storage condo- miniums to be located at 7552 West Point Douglas Road South and variances to City Code Titles 11-6-5, Landscaping Requirements; 11-6-13, Architecture; and 11- 10D-7, Self-Storage Facilities. This project is the same as what was approved in 2014. Economic Development Authority Development Update October 4, 2017 Page 12 of 13 Comprehensive Plan: The next meeting of the Comprehensive Plan Update Steering Committee will be held on Monday, November 6, at 6:30 p.m. in the Training Room at City Hall. Harkness Avenue Small Area Study: Members of the City Council, Comprehensive Plan Update Steering Committee, Planning Commission, and Economic Development Authority toured a market rate apartment building, The Finn, located in St. Paul. The purpose of the tour was to research other types of housing that could be developed along Harkness Avenue if the Council approves the comprehensive plan amendment for the Harkness Avenue Small Area Study at their meeting on October 18. Economic Development Riverboat Cruise: On Tuesday, September 12, the City of Cottage Grove hosted the 2017 Business Appreciation Riverboat Luncheon Cruise on the Mississippi River. The cruise, which lasted from 11:00 a.m. until 1:00 p.m., focused on the Cottage Grove Business Retention and Expansion (BR&E) Program. The BR&E is an effort by the City of Cottage Grove to support businesses in the community through one-on-one interviews to retain and expand businesses within Cottage Grove. The whole BR&E Program was on a volunteer basis, so the riverboat cruise was a way to say thank you to all the businesses, task force members, and community leaders that participated, while also announcing the key objectives that came up with as a result of the business interviews. The weather was great and everyone enjoyed themselves. City staff looks forward to the next riverboat cruise in 2019. Business Park AUAR The City has been making great strides to meet the Council goal of positioning for growth through activities such as the Comprehensive Plan update process, qualifying sites in the Business Park as shovel ready through Department of Employment and Economic Development (DEED) and Xcel En- ergy, and completion of the Business Retention and Expansion (BR&E) Program. Part of making a parcel of land shovel ready is completing background work such as environmental and grading work. As part of the process, it is important to look at future industrial growth in our community. The City has received interest from potential end users looking for sites larger than 50 acres; currently the City would not have any sites of that size available for industrial users. The logical progression of the Business Park would be to see the parcels south of 100th Street in the Business Park as a future development area for industrial/business use. The proposed area would be guided through the Com- prehensive Plan as industrial, but the zoning would remain agricultural preservation until a proposed development became certain. To facilitate future development in this area, it is important to complete the shovel ready steps, such as the environmental work that would allow our Business Park to remain competitive with the Twin Cities area and the State. Economic Development Authority Development Update October 4, 2017 Page 13 of 13 The environmental work that would need to take place is an Alternative Urban Areawide Review (AUAR). An AUAR is a planning tool that local governments can use to understand how different development scenarios will affect the environment of their community before the development occurs. The process is designed to look at the cumulative impacts of anticipated development scenarios within a given geographic area. The AUAR process includes the preparation of a “Mitigation Plan” that identifies methods to avoid, minimize, or mitigate identified environmental impacts as future de- velopment takes place. An AUAR takes approximately 120 days to complete from the time elected officials approve beginning the process, with no objections from State Agencies such as Minnesota Department of Transportation (MnDOT), Department of Natural Resources (DNR), and the Metropol- itan Council, and then final adoption by the City and being published in the State’s Environmental Journal (EQB Monitor). The City of Cottage Grove recently completed the draft of the AUAR and on October 4 the City Council will authorize the distribution of the draft AUAR for publication in the EQB Monitor to begin the 30-day comment period. Below is the timeline for the completion of the AUAR process. EVENT DATE City Council – Authorize distribution of draft Business Park AUAR for October 4, 2017 publication. Draft AUAR sent to EQB Monitor and Federal and State distribution October 5, 2017 agency list Submission to the EQB Monitor October 9, 2017 Publication in the EQB Monitor (begin 30-day comment period) October 16, 2017 Draft AUAR comments (in writing) due November 14, 2017 Responses to Final AUAR submitted to EQB Monitor November 20, 2017 Responses to Final AUAR published in EQB Monitor November 27, 2017 Objection Period to responses of Final AUAR completed December 6, 2017 City Council adopts Final AUAR December 20, 2017 Community Internet Survey The City of Cottage Grove will be undertaking a comprehensive community internet survey from October 15 through November 15. The survey is an effort to determine gaps of service in our com- munity and what access our residents and businesses have to high speed internet, speed levels, and multiple providers. In order to accurately survey the community, we will be asking all participants to provide their address. The survey will take about 10 minutes and contains 20 mostly multi-choice questions. The survey can be accessed at www.cottage-grove.org/internet and will start October 15 and conclude on November 15. As part of the survey, participants will be asked to provide internet speeds (both upload and download), which can be determined by visiting www.speedtest.net.