HomeMy WebLinkAbout2018-05-08 PACKET 04.04.
TO: Economic Development Authority
FROM: Christine Costello, Economic Development Director
DATE: May 1, 2018
RE: Letter of Intent with Renewal by Andersen
Background
In March 2018, the City of Cottage Grove met with Renewal by Andersen to discuss the need for
expansion at their facility located at 9900 Jamaica Avenue South. Renewal by Andersen has
seen tremendous growth at their facility and has begun to out grow their location for both
employee and semi-trailer parking for the shipping of their products.
Renewal by Andersen has developed a short-term solution that includes locating some of their
semi-trailers off site but this is not conducive to their business operations long term. An interior
drive aisle located along the west property line currently serves both employee and semi-trailer
traffic. This has become a conflict point and Renewal by Anderson wants to eliminate semi-trailer
traffic in this area to prevent the traffic conflicts. Again, this only serves as a temporary solution
but does not solve their long-term need for additional semi-trailer parking.
Renewal by Andersen is looking at the land locate to the west of their property and south of
LeafLine Labs for expansion. LeafLine Labs has a right of first refusal for the vacant property
(approximately 17.6 acres) south of their facility. The right of first refusal allows LeafLine Labs the
opportunity to match the proposed business terms of a party that has provided a written offer to
purchase the land, in this case Renewal by Andersen. LeafLine Labs will have ten days to accept
or reject the offer from Renewal by Andersen. LeafLine Labs was constructed in 2015, and since
their construction they have not expressed an interest in purchase or expansion of their facility to
the south.
Economic Development Authority
April 2, 2017
Page 2 of 3
Right of First Refusal Property
Renewal by Andersen is interested at this time in purchasing the 9.210 acres that is closest to
their facility. The purchase of this acreage adjacent to their facility, allows for a clean delineation
in parcels and allows for a cul-de-sac to be installed for the future development of the remaining
parcel that is under LeafLine Labs right of first refusal is not purchased by Renewal by Andersen.
Though Renewal by Andersen will include in their right of first refusal an option to purchase the
west 8.448 acres if they were to continue to see grow in the company. This would allow for a full
th
four-way intersection at Ideal Avenue and 100 Street to service any future expansion.
Location of Proposed 8 Acre Purchase
Economic Development Authority
April 2, 2017
Page 3 of 3
On the proposed 9.210 acres Renewal by Anderson would construct a parking lot with trailer
spaces that would serve 40-50 semi-trailers.
Discussion
Renewal by Andersen would initially construct a parking lot that would accommodate parking for
40-50 semi-trailers. The trailers will access the parking area from the drive aisle on the west
property line. The approximate nine acre parcel would be combined and platted with Renewal by
Andersen’s existing parcel.
The land within the right of first refusal is owned by the WAG Farms trust. Historically, all land in
the Business Park has been sold to the EDA and then sold to end usr, allowing for cost recovery
to make the site pad ready.
The EDA is committed business retention and expansion in the Business Park and Renewal by
Andersen has been a great addition and employer in the community. Renewal by Andersen
continues to look towards its future business growth and this opportunity to expand parking for
semi-trailers may lead to future considerations of business expansion in our community.
Recommendation
Authorize the EDA President and Executive Director to execute the Letter of Intent (LOI) with
Renewal by Andersen for the purchase of eight acres south of Leafline Labs and submit the
request to LeafLine Labs for the right of first refusal.
Attachment
Letter of Intent from Renewal by Andersen