HomeMy WebLinkAbout4.1 Economic Development Update/Business Inquiry
Business/ Inquiry
To: Honorable Mayor Bailey and EDA Members
From: Christine Costello, Acting Community and Economic Development Director
and Matt Wolf, Economic Development Specialist
Date: February 6, 2019
Activites that have taken place in the community that may have a potential impact on economic
development activity:
Discussion Staff Action
Sushi Café Ribbon Cutting The City of Cottage Grove hosted a ribbon cutting for the
January 12, 2019 newly remodeled and opened Sushi Café at 7750 Harkness
Ave. S. #112.
Meeting with Chamber to Economic Development Specialist Wolf met with Jennifer
discuss Lodging Tax January Wenshau the Executive Director of the Cottage Grove Area
18, 2019 Chamber to discuss the proposed timeline for implementing
the Lodging Tax within Cottage Grove and establishing the
Cottage Grove Area Visitors and Tourism Bureau.
Meeting with VSM Acting Community and Economic Development Director
Commercial January 22, Costello and Economic Development Specialist Wolf met
2019 with VSM Commercial. VSM Commercial is an investment
firm looking into purchasing the Shamrock Liquors/Von
Hanson’s building (9030 Inwood Ave. S.) and the current
Subway/old Selvig Jewelry building (8455 East Point
Douglas Rd. S.). The purpose of the meeting was to discuss
the City of Cottage Grove zoning ordinance and what uses
would be permitted in the buildings.
Massage License Ordinance Acting Community and Economic Development Director
Meeting with Area Costello, City Administrator Levitt, Deputy City Clerk
Businesses January 24, 2019 Belscamper, and Economic Development Specialist Wolf
met with local area massage businesses to discuss the
recently established massage ordinance and how the
ordinance was affecting their businesses.
Planet Fitness Ribbon The City of Cottage Grove hosted a ribbon cutting for Planet
Cutting January 29, 2019 Fitness at 7210 East Point Douglas Road.
SWCTC Meeting February 5, Acting Community and Economic Development Director
2019 Costello, Communications Manager Scott Seroka and
Economic Development Specialist Wolf met with SWCTC to
discuss developing a marketing video for the City of Cottage
Grove that could be used to promote the community at
events and to developers.
Washington County CDA Economic Development Specialist Wolf attended the
Economic Development Washington County CDA Economic Development meeting to
Meeting February 6, 2019 discuss the upcoming new website the CDA is developing to
Development Inquiry Update
February 8, 2019
Page 2
highlight Washington County communities for business
growth, expansion and retention.
Ehlers Conference February Acting Community and Economic Development Director
7-8, 2019 Costello and Economic Development Specialist Wolf
attended the winter Ehlers Seminar. The seminar covers a
range of topics from tax increment financing, economic
outlook for Minnesota, current state of the industrial market,
and more.
DARTS Meeting – Bus LOOP Economic Development Specialist Wolf met with DARTS to
Planning February 11, 2019 discuss the needs assessment survey and advisory
committee for the proposed bus circulator loop in Cottage
Grove.
TO: Economic Development Authority
FROM: Christine Costello, Acting Community & Economic Development Director
DATE: February 8, 2019
RE: Development Update
Building Permits
Building Permit Statistics
Between January 1 and January 31, 2019, there were 218 building permits issued with a total valua-
tion of $6,530,753, including 16 new single-family homes valued at $4,520,338. In 2018, there were
383 commercial permits issued with a total valuation of $52,811,194. In addition, total of 3,414 permits
were issued with a valuation of $116,931,536, which included 160 single-family homes valued at
$46,082,402; 24 townhome units valued at $4,151,599; and 1 manufactured home (185 housing units
with a total valuation of $50,234,001.
Commercial/Industrial Construction Activity
120000000
100000000
80000000
60000000
40000000
20000000
0
19971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019
yearvaluation
Economic Development Authority
Development Update
February 8, 2019
Page 2 of 11
Residential Permits -New construction
1996 to 2019
350
300
250
200
150
100
50
0
1995200020052010201520202025
Current Project Updates
HERO Center
Footing installations progressed throughout December. During the month, interior masonry wall
construction also began. Precast wall panel installations are scheduled to begin in February with
structural steel installation to follow panel erection. Construction of the HERO Center will continue
through the winter as weather conditions allow.
January 21 Aerial Image of Project HERO Site
Economic Development Authority
Development Update
February 8, 2019
Page 3 of 11
Muddy Cow:
The stonework has been completed for the new beer cooler addition to the rear of the building; the
roof will be installed soon. Contractors are continuing with the interior finish work.
Triple Angels:
Exterior items for the building unit are complete. Landscaping and lot items will be addressed in the
spring. Interior paint is on the walls; the ceiling has been installed; doors, trim, and flooring will be done
over the coming weeks.
Economic Development Authority
Development Update
February 8, 2019
Page 4 of 11
Park Place Storage:
Hinton Avenue & 70th Street Roundabout
During the month of January, Washington County completed the project plans for the Hinton & 70th
roundabout and put the project out to bid. These improvements will enhance safety and mobility
through the intersection. The roundabout will be built for two lanes of traffic to accommodate a poten-
tial widening of 70th Street to four lanes in the future. In the near term, the roundabout will be striped
to function as a single-lane facility. The bid for this project will be brought to the City Council for con-
currence on February 20, prior to the Washington County Board awarding the bid. This project is
scheduled to begin late spring of 2019 and is anticipated to be complete by late fall 2019.
Jamaica Avenue & 95th Street Signal
In 2019 the City plans to install a traffic signal at 95th
Street and Jamaica Avenue to improve the operations
of the intersection. With recent construction in the busi-
ness park, this intersection now meets the warrants for
the signal. This signal will also accommodate addi-
tional growth in the future. To accommodate the
required geometry for a traffic signal installation, the
intersection will be reconstructed to improve site-lines,
alignment, and operations. While the concept for the
project included a concrete intersection, staff is also
reviewing the option of heavy-duty bituminous pave-
ment as well. This pavement is designed to handle
higher truck traffic and may provide a more cost-effec-
tive and easily constructible project. This project is
anticipated to begin in the summer of 2019 and be complete by late fall of 2019.
Economic Development Authority
Development Update
February 8, 2019
Page 5 of 11
Hamlet Park Improvements
As shown in the CIP, the City plans to begin the first part of a four-phase expansion of Hamlet Park in
2019. The first phase will include grading and utility work to extend the storm sewer, sanitary sewer,
and watermain required to facilitate future phases. The second phase includes ballfield construction
and sod establishment and will occur in 2020. The third phase, which will occur in 2021, will include
construction of the new parking lots, trails, sidewalks, and landscaping. The fourth and final phase will
include the construction of a new park pavilion and concession stand in 2022. Below is the concept
plan of the project.
West Central Ravine Sanitary Sewer Lining
The City plans to conduct a slip-lining project to repair damages caused by corrosive sewer gases in
a section of concrete sanitary sewer pipe that extends from 80th Street to Hillside Trail along the West
Central Ravine Park trail corridor. The location of this pipe is highlighted in red on the map below. This
project is earmarked in the CIP for 2019 and will extend the life of this trunk sanitary sewer pipe and
prevent a costly replacement. This project will be very similar to the slip lining project that was com-
pleted in 2016 on the Hamlet trunk sanitary sewer pipe that runs from Hamlet Avenue to 95th Street.
Economic Development Authority
Development Update
February 8, 2019
Page 6 of 11
Planning Division
Planning Commission Meeting
The Planning Commission met on January 28, 2019, and held public hearings on the following appli-
cations:
Capp Industries Concept Plan: Capp Industries, Incorporated applied for a concept plan review for a
warehouse development on 25.3 acres of vacant land located between 7858 and 8585 West Point
Douglas Road South. The applicant proposed develop-
ment of three office/warehouse buildings that would be
approximately 120,000 square feet each. The Planning
Commission held the public hearing and reviewed the
application. There was no public testimony for or
against this application. The Planning Commission
unanimously (9-to-0 vote) recommend approval of the
site plan. This application will on the on the February
20, 2019, City Council meeting agenda.
Aggregate Industries Mining Permit: Aggregate Industries North Central Region, Inc., applied for
their 2019 mining permit to continue mining operations at 11250 Grey Cloud Trail South on Lower
Grey Cloud Island. The Planning Commission reviewed the application at their meeting on January
28. There was no public testimony for or against the application. The Planning Commission unani-
mously (9-to-0 vote) recommended approval of the mining permit. This application was on the on the
February 6, 2019, City Council agenda.
Economic Development Authority
Development Update
February 8, 2019
Page 7 of 11
Young Addition: US Home Corporation, dba Lennar, applied for a zoning amendment to change zon-
ing of property located at 7930 65th Street South from R-2.5, Residential, to R-3, Single-Family
Residential with a Planned Development Overlay (PDO), and a preliminary plat for a residential sub-
division consisting of 10 residential lots for single-family homes. The Planning Commission held the
public hearing and reviewed the application at their meeting on January 28. There was no public
testimony for or against the application. The Planning Commission unanimously (9-to-0 vote) recom-
mend approval of the mining permit. This application will on the on the February 20, 2019 City Council
meeting agenda.
February 25 Planning Commission Meeting
The agenda for the February 25 Planning Commission meeting includes:
Lake Flora Addition Preliminary Plat (PP2019-010): The City of Cottage Grove has applied for a
preliminary plat for a subdivision to be called Lake Flora Addition, which will be located on 24.588
acres of land north of 100th Street and east of Jamaica Avenue. This plat will create two commer-
cial/industrial lots and two outlots.
Airgas (SP2019-007, CUP2019-008, and V2019-009): Airgas, an Air Liquide Company, has applied
for a site plan review and conditional use permit for the development of an industrial processing
facility, which will be approximately 17,000 square feet, and related processing equipment, parking,
and utilities on an 8.5-acre parcel of land located on the northeast quadrant of Jamaica Avenue
exterior building materials.
Economic Development Authority
Development Update
February 8, 2019
Page 8 of 11
Economic Development
Airgas USA
In 2017, the City of Cottage Grove worked to get over 50 acres of land certified through the new Xcel
Energy Shovel Ready Certification Program. The program was an effort by Xcel to compile a list of
available sites in their service area that would be build-ready for potential industrial businesses. As a
result, Airgas USA, in August 2018, contacted Xcel Energy for potential sites to expand their opera-
tions in the Midwest market. Specifically, Airgas USA was looking to build an Air Separation Plant to
produce liquid oxygen, nitrogen, and argon that are used in many industrial and medical facilities.
Due to the nature of their business Airgas required
Heavy Industrial zoned land for their expansion.
The City of Cottage Grove proposed a site just to
the west of the intersection of Jamaica Avenue and
100th Street. The plant would be on a site that is
roughly 8.5 acres
Airgas USA submitted a Letter of Intent to work ex-
clusively with the City of Cottage Grove EDA on
developing a purchase agreement, which was ap-
proved at the January 8, 2019 EDA meeting. Due
to the nature of their business, they will also be re-
quired to apply for a conditional use permit and a
variance for exterior building materials. These ap-
plications are on the February 25, 2019, Planning
Commission agenda.
A workshop on the project will be held with the City
Council at their February 6meeting. The purpose
of the workshop will be for Airgas USA to discuss
their preliminary site layout and the operations of
the site and to answer questions regarding their
prospective project. The project will then move to
the EDA on February 12 for discussion of the Pur-
chase Agreement, Development Agreement, and State assistance through the Minnesota Investment
Fund and Job Creation Fund.
Hotel Site
This past December staff attended the Minnesota Marketing Partnership meeting and were able to
make a connection with a representative from Stahl Construction. Stahl Construction was formed in
1981 and specializes in hospitality development projects. They are based out of Urbandale, Iowa, but
most of their projects are in the Twin Cities region. Their projects include a wide variety of brands such
as Hyatt, Marriott, Hampton, and Holiday Inn. They recently have branched out to not only do con-
struction but also development.
Stahl Construction is interested in further vetting the City of Cottage Grove controlled site along Hard-
wood Avenue in more detail to determine potential partners and construction type that would work on
the site. A Letter of Intent between Stahl Construction and the City of Cottage Grove will be on the
Economic Development Authority
Development Update
February 8, 2019
Page 9 of 11
February 12 EDA meeting agenda. The LOI lasts for a period of 90 days, during which time Stahl
Construction will look at the feasibility of the site, including market study, analysis of pro formas and
risk factors, and presentation to potential investors and funders. A sample of their hospitality projects
can be found at: http://www.stahlconstruction.com/projects/industry/hospitality/
Muddy Cow
Muddy Cow has applied for their liquor license. The application is currently under review by Public
Safety, and if there are no issues, the license is scheduled to be on the February 20 City Council
Las Margaritas/Perkins
Las Margaritas has completed the purchase of the old Perkins building along East Point Douglas
Road for $900,000. Their current lease at Shoppes at Gateway North goes through 2019. Staff has
space until their current lease runs out. During this time, they plan undertake interior remodeling of
the building. Staff will be reaching out to Las Margaritas to discuss the Façade Improvement Program
for potential exterior renovations.
Lodging Tax
The Economic Development Authority, at their January 8 meeting, held a workshop with the Cottage
Grove Area Chamber of Commerce to discuss the potential administration of lodging tax funds through
-profit organization that
would be run by staff provided by the Chamber. At the workshop, the Chamber presented a sample
annual operating budget along with discussion of how it would work to form the separate non-profit
the Chamber (Cottage Grove, St. Paul Park, and Newport).
Bus Circulator
A workshop was held at the January 8 EDA Meeting to discuss the potential for a once-a-week bus
circulator through a company called DARTS. DARTS is a nonprofit organization that offers a service
called Bus LOOP Transportation. LOOP is a bus circulator transportation service offering scheduled
stops that are targeted towards senior citizens so they can access the community for retail, restau-
rants, health services, and other activities. The buses are wheelchair and scooter accessible, and the
costs usually range between $2-$5 to have unlimited rides on the bus for the day. The service is called
five times.
The service costs $25,000 a year for a once-a-week route in the city. This cost is split between com-
munity partners and sponsors that help pay the costs to offer the service in the community. These
community partners also form an advisory committee that helps plan the route and advise on how the
service can be improved.
The EDA was receptive to the idea of the bus circulator, and staff will begin working on the next steps
of forming an Advisory Committee and carrying out a Needs Assessment Survey with DARTS.
Shoppes at Cottage View
The City of Cottage Grove has been in contact with Landform to discuss creating a development plan
for the Shoppes at Cottage View. The goal is to develop a mixed-use development plan that reflects
current market conditions for this site. The plan could then be used to help market and promote the
Economic Development Authority
Development Update
February 8, 2019
Page 10 of 11
site to brokers and developers at conferences (i.e.; MNCAR, ICSC, etc.). The plan would be carried
out in three phases: Schematic Study and Design, Development Plan, and Presentation Materials.
The City of Cottage Grove is currently in discussion with Landform to determine the exact boundaries
of the site to be part of the plan and the overall cost. A meeting is also being setup with Landform to
discuss including in the plan a site for the potential Community Center.
To help fund the plan, the City of Cottage Grove will be applying for a predevelopment finance fund
grant through the Washington County CDA. The grant would pay for up to 50 percent of the total cost
for the Master Plan. A resolution of support will be brought before the EDA at the February 12 meeting.
Annual Business Breakfast
The Annual Business Breakfast held at 3M each year is scheduled for Tuesday, March 26, from 7:00
-winning broadcaster,
author, and community leader. Joe will be speaking on making an influence through purpose, persis-
tence, and passion.
Ribbon Cuttings
Orange Theory Fitness: Trace and Courtney Martin, the owners of Orange Theory Fitness, held their
grand opening on Monday, December 31. Orange Theory Fitness offers heart-rate based, science-
based classes focused on interval training. They will be open 364 days a year and have 15 employees.
Sushi Café: The ribbon cutting/grand opening was held on Saturday, January 12 at 11:00 a.m. The
newly renovated space is owned and operated by the same ownership group that operates Osaka in
Woodbury.
Economic Development Authority
Development Update
February 8, 2019
Page 11 of 11
Planet Fitness: Planet Fitness hosted their ribbon cutting ceremony on Tuesday, January 29, at noon.
The Cottage Grove Planet Fitness is owned and operated by PF Baseline Fitness, a franchisee of
Planet Fitness based in Fargo, ND that currently owns over 22 clubs in the Midwest and California.
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