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Home My WebLink About4.1 Economic Development Update/Business Inquiry TO: Economic Development Authority FROM: Christine Costello, Acting Community & Economic Development Director DATE: March 7, 2019 RE: Development Update Building Permits Building Permit Statistics: Between February 1, and 28, 2019, there were 379 building permits issued with a total valuation of $10,952,407, including 13 new single-family homes valued at $3,746,765. Commercial Permit Valuation Comparison By Month 2018-2019 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - JanFebMarAprMayJunJulAugSepOctNovDec 2019 Valuation2018 Valuation Economic Development Authority Development Update March 7, 2019 Page 2 of 8 Commercial/Industrial Construction Activity 120000000 100000000 80000000 60000000 40000000 20000000 0 yearvaluation Residential Permits -New construction 1996 to 2019 350 300 250 200 150 100 50 0 1995200020052010201520202025 Economic Development Authority Development Update March 7, 2019 Page 3 of 8 Current Project Updates HERO Center: During the month of February precast wall panel installations began with structural steel installation to follow panel erection, likely beginning in early March. Exterior and interior ma- sonry walls were constructed. Construction of the HERO center will continue through the winter as weather conditions allow. Park Place Storage: The building permit application for Building C has been submitted for review. Portions of Building A are ready for occupancy. Building B is nearly complete. Target: This project consists of exterior façade, interior customer service, grocery, and changing room improvements. Exterior façade framing and sheathing have been installed. Interior framing and elec- trical work are near completion. Economic Development Authority Development Update March 7, 2019 Page 4 of 8 Triple Angels: This project is nearing completion. Muddy Cow: This project is nearing completion with a proposed opening date of March 22. Hinton Avenue & 70th Street Roundabout: During the month of January, Washington County com- pleted the project plans for the Hinton Avenue & 70th Street 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 potential 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. Bid concurrence was approved at the February 20 City Council meeting. This project is scheduled to begin in late spring of 2019 and is anticipated to be complete by late fall of 2019. The current construction plan includes maintaining access to local business by constructing the roundabout in five phases. Economic Development Authority Development Update March 7, 2019 Page 5 of 8 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 includes grading and utility work to extend sanitary sewer and watermain required to facilitate future phases. The second phase will include ballfield construction and sod establishment and will occur in 2020. During the third phase, con- struction of the new parking lots, trails, sidewalks, and landscaping will occur in 2021. 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. Final plans will be completed in March 2019 for City Council approval. 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 loca- tion of this pipe is highlighted in red on the map at right. 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 sim- ilar to the slip-lining project that was completed in 2016 on the Hamlet trunk sanitary sewer pipe that runs from Hamlet Avenue to 95th Street. Airgas: Airgas is an industrial business specializing in the separation and liquification of oxygen, nitrogen, and argon for industrial, manufacturing, and healthcare end users. This project will include the construction of a new Air Separation Plant (ASU), which removes air from the atmosphere and separates the air into liquid oxygen, nitrogen, and argon. The ASU will occupy an 8.5-acre parcel of land along the north side of 100th Street, east of the old Glendenning Road right-of-way. The project includes the construction of an Xcel Electric substation and the extension of a 115kV electrical transmission overhead powerline to provide the high power demand required to operate the cooling towers and compression systems needed to liquify atmospheric gases. It is anticipated that construction will begin construction in April or May of 2019. Completion and plant in-service are anticipated by October of 2020. Economic Development Authority Development Update March 7, 2019 Page 6 of 8 Planning Division Planning Commission Meeting The Planning Commission met on February 25, 2019, and held public hearings on the following applications: Lake Flora Addition (PP2019-010) and Airgas (SP2019-007, CUP2019-008, and V2019-009): Lake Flora Addition Plat and Airgas: The City of Cottage Grove is the applicant for a preliminary plat for a subdivision to be called Lake Flora Addition, which will be located on 43.71 acres of land north of 100th Street and east of Glendenning Road. The plat will create two commercial/industrial lots and two outlots. Airgas, an Air Liquide company, is the applicant for the proposed land use on Lot 1, Block 1 of the proposed plat. They applied for a site plan review and conditional use permit for the development of an industrial processing facility (air separation plant), which will be approximately 17,000 square feet, and related processing equipment, parking, and utilities. Airgas also applied or building materials. The Planning Commission unanimously (7 to-0 vote) recommended approval of the preliminary plat, site plan review, conditional use permit and variance. This application will on the on the March 20, 2019 City Council meeting agenda. Preliminary Plat Proposed Site Plan Economic Development Authority Development Update March 7, 2019 Page 7 of 8 March 25 Planning Commission Meeting The Planning Division received the following applications for the March 25, 2019, Planning Com- mission Meeting: Verizon Antenna on West Draw Water Tower: Verizon Wireless applied for a conditional use permit to allow installation of wireless telecommunications equipment on/at the West Draw Water Tower, 6950 Meadow Grass Avenue South. The proposal includes a temporary pole/antenna structure and a permanent installation on the water tower. Permanent Installation Plan Temporary Installation Plan Danner Grading Permit for Cottage View Site: Danner Inc. has applied for an interim conditional use permit to allow grading of 500,000 cubic yards on approximately 68 acres of land located on the northeast corner of U.S. Highway 61 and Keats Avenue to prepare the Cottage View site for future development. Location Map Overall Grading Plan Economic Development Authority Development Update March 7, 2019 Page 8 of 8 Economic Development Lodging Tax Meeting: The City of Cottage Grove hosted a Lodging Tax meeting with area lodging facilities on Tuesday, March 6, at River Oaks. The purpose was to discuss the proposed lodging tax At the meeting, businesses who could help to direct the funds in a way to get the most out of the marketing the community. The Chamber of Commerce indicated that they will be setting up the board to make sure the lodging facilities and businesses that rely on tourism are represented on the Board of Directors. A letter of intent between the City of Cottage Grove and the Cottage Grove Area Chamber of Commerce will be brought before the Cottage Grove Economic Development Authority at their meeting on March 12, 2019. Muddy Cow: Staff has been in contact with the Muddy Cow owners on setting up a grand opening/ribbon cutting event. Currently Muddy Cow would like to ensure that their staff and building are fully ready before opening. They have pushed back their opening and are tentatively looking at March 22. As they move forward, they plan to let the City of Cottage Grove know 10 days prior to opening to get a ribbon cutting event scheduled. Washington County Economic Development Meeting: City of Cottage Grove staff attended the Washington County Economic Development meeting on March 6 at the Washington County Community Development Agency. The meeting focused on being shovel-ready for development with a presentation from Amanda Taylor, Director of Research for GreaterMSP. It was a great opportunity to hear that Cottage Grove is already doing most of the items that are required to be ready for development. Specifically, as the City of Cottage Grove has under gone the process twice to get over 50 acres shovel-ready certified through the Department of Employment and Economic Development and Xcel Energy. Summary of Economic Activity Employment and Wages - Prices - - I-1 Consumer Spending - - - Manufacturing -- Services Agriculture, Energy, and Natural Resources Construction and Real Estate - - - I-2