HomeMy WebLinkAbout4.1 Business Inquiry/Development Update
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: April 4, 2019
Activites that have taken place in the community that may have a potential impact on economic
development activity:
Discussion Staff Action
Bus Circulator Meeting with Economic Development Specialist Wolf and Administrative
DARTS – Tuesday, May 12 Assistant Hetland met with DARTS to discuss the proposed
Bus Circulator LOOP in Cottage Grove.
ICSC Kick-Off Meeting – Mayor Bailey, Councilmember Dennis, City Administrator
Thursday, May 14 Levitt, Acting Community and Economic Development
Director Costello and Economic Development Specialist
Wolf met to discuss the logistics for the upcoming ICSC
event in May.
ICSC Promotional Video – Economic Development Specialist Wolf and
Thursday, May 14 Communications Manager Seroka worked with SWCTC to
shoot a promotional video for the upcoming ICSC event with
Culver’s, HyVee, and Planet Fitness
Airgas Meeting - Thursday, Acting Community and Economic Development Director
May 14 Costello and Economic Development Specialist Wolf met
with Airgas to discuss the purchase agreement and wetland
delineation for the site.
Senior Center Meeting – Economic Development Specialist Wolf met with staff from
Monday, March 18 the School District Senior Center to discuss the proposed
DARTS Bus Circulator LOOP.
Annual Business Breakfast – The Annual Business Breakfast was held at 3M on Tuesday,
Tuesday, March 26 March 26 from 7:00 am to 9:00 am, which included members
of the business community and Senator Karla Bigham. This
year’s guest speaker was Matt Birk from the Minnesota
Vikings. Matt is a Super Bowl winner and author. Matt
related his experiences in the NFL on how to become a
better leader and create effective teamwork.
Muddy Cow Ribbon Cutting – Muddy Cow officially opened for business and held their
Tuesday, March 26 grand opening/ribbon cutting celebration on Tuesday, March
26 at 11:00 am. Muddy Cow is owned by Frank Greczyna
and Pat Conroy. After opening their first successful
restaurant in Coon Rapids they have opened locations in
Shakopee, Litchfield, Oak Park Heights, Burnsville and now
Cottage Grove.
Development Inquiry Update
April 4, 2019
Page 2
Lodging Tax Meeting with Staff met with the Cottage Grove Area Chamber of
Chamber of Commerce – Commerce to begin the process of establishing the Cottage
Thursday, March 28 Grove Area Tourism and Visitor’s Bureau (Bureau). Once a
Board of Directors is preliminary established the Bureau will
apply to the State of Minnesota and Internal Revenue
Service for 501c6 non-profit status. When that process is
complete a lodging tax ordinance will be brought before the
Cottage Grove City Council.
Business Park Newsletter Staff met to discuss the Business Park Newsletter that will
Meeting – Friday, March 29 be emailed out to brokers, developers and potential
investors to promote the City of Cottage Grove Business
Park.
Façade Improvement Acting Community and Economic Development Director
Meeting – Tuesday, April 2 Costello and Economic Development Specialist Wolf met to
discuss the final façade improvement applications that were
submitted and next steps.
Access to Employment, Economic Development Specialist Wolf attended the Access
Workgroup – Thursday, April to Employment Workgroup hosted by Washington County to
4 discuss workforce issues in the County.
Discussion of Cottage Grove Economic Development Specialist Wolf met with Sheila
Bus Circulator – Friday, April Holbrook-White, Washington County Mobility Manager, and
5 Sally Anderson from Community Thread to discuss the
proposed Bus Circulator LOOP in Cottage Grove.
TO: Economic Development Authority
FROM: Christine Costello, Acting Community & Economic Development Director
DATE: April 4, 2019
RE: Development Update
Building Permits
Building Permit Statistics: Between March 1 and March 31, 2019, there were 241 building permits
issued with a total valuation of $5,367,700, including 13 new single-family homes valued at $3,690,358
and 4 quad homes in one building with a valuation of $696,344.
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
April 4, 2019
Page 2 of 9
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
April 4, 2019
Page 3 of 9
Current Project Updates
The HERO Center: Exterior and interior masonry walls were constructed between January and Feb-
ruary. During the month of March, precast wall panel and structural steel installation neared comple-
tion. Contractors anticipate having the gun range dried in by the end of April with interior finishes, site,
and power utility construction beginning in late April.
85th Street looking south Northwest corner of building looking south
HERO Center Conceptual Elevations
Ice Arena South and Main Ice Rink Improvement: This project consists of removing both ice rink
surfaces completely and adding new refrigeration for both rinks. Total Mechanical is the contractor for
this project with a construction value of $1,567,745.
Economic Development Authority
Development Update
April 4, 2019
Page 4 of 9
Target: The façade and minor interior remodeling project is nearing completion.
Park Place Storage Unit Building C: The construction plans for third building of this project (64,800
square feet with a valuation of $2,980,800) were reviewed and approved. The building permit is ready
for issuance.
Menards: The building plans for a 43,904 square foot storage building with a construction value of
$843,176 have been submitted for review.
Park High School Bleachers: South Washington County Schools has proposed a bleacher replace-
ment project at Park High with a value of $136,544.
Triple Angels: The Certificate of Occupancy was issued.
Spring Flooding
Engineering worked with Public Works and Public Safety in March to address significant inland flood-
ing and ongoing river flooding. A quick melt, extended rain event, and frozen ground led to unprece-
dented local high water levels in many drainage and ponding areas during the week of March 11. A
quick response by the City mitigated any serious issues during the event, and recent dry conditions
have allowed the high water to subside. The City is still dealing with flooding on the Mississippi River,
with the Grey Cloud Trail Bridge being closed
bridge when water is within one foot of the bottom girder and to place the necessary jersey barriers to
weigh down the bridge. While the
slower melt within the upper Minne-
sota and Mississippi River water-
sheds has resulted in a lower crest,
it also greatly lengthens the time the
water will remain high. Currently the
river was predicted to crest on April
1 and maintain a higher level through
the first week of April. The bridge will
remain closed until the water level is
low enough to remove debris that is
caught on it and have an inspection
completed. Based on the current
predicted crest, the Grey Cloud
Economic Development Authority
Development Update
April 4, 2019
Page 5 of 9
Island Drive causeway will remain open and give access to the island. Below is a photo of the bridge
on March 27.
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 project was awarded by the Washington County Board during
March. The County will hold an Open House during the month of April, with work anticipated to start
in May. The current construction plan includes maintaining access to local business by constructing
the roundabout in five phases.
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 sanitary sewer and watermain
required to facilitate future phases. The plans & specs were approved by the City Council on March
20, and the project is currently out for bid.
Calarosa Development (3rd Addition)
The Calarosa development includes three separate additions totaling 230 lots. The 3rd Addition, which
will include 110 lots, is scheduled to begin construction in April 2019 and be complete by fall of 2019.
Economic Development Authority
Development Update
April 4, 2019
Page 6 of 9
This phase will also include construction of the Association clubhouse and outdoor pool. The
development is located northeast of the Ideal Avenue-65th Street/Ravine Parkway intersection, south
of the Woodbury border and west of Inwood Avenue. The pre-construction meeting for Calarosa 3rd
Addition was held on March 27.
Manning Avenue Safety Improvements
MnDOT accepted bids for the second phase of the Manning Avenue Safety Improvements Project in
March. This phase will involve reconstruction from 70th Street to Highway 61 and will be completed
in two phases between 2019 and 2020. MnDOT is holding an open house on April 9 and will provide
more information regarding the phasing and detour plan at that meeting. A City representative will also
be present at the open house.
Planning Division
Planning Commission Meeting
The Planning Commission met on March 25, 2019, and reviewed the following applications:
Verizon Antennas on West Draw Water Tower Case CUP2019-012: The Planning Commission held
the public hearing on the request by Verizon Wireless to install antennas and equipment on the
Meadow Grass water tower at the corner of Meadow Grass Avenue and 70th Street. Verizon has a
Economic Development Authority
Development Update
April 4, 2019
Page 7 of 9
current lease for their equipment on the communications towner at the old City Hall location. The City
has requested to terminate the lease agreement, which necessitates that Verizon relocate their com-
munications equipment. There would be six antennas added to the water reservoir that would extend
approximately eight feet from the guardrail, the same height as existing antennas. Additional equip-
ment storage cabinets would be located within the water reservoir.
A temporary location may be required to be constructed at ground level near the water reservoir to
allow continued service while state and federal permitting processes are completed. The temporary
structure would be approximately 400 square feet with equipment cabinets and a monopole tower to
support the antennas. The temporary location would be removed at such time the permanent equip-
ment installation is completed.
The Planning Commission unanimously (5-0 vote) recommended approval of the conditional use
permit. This request will be heard at the April 17, 2019, City Council meeting.
Danner Grading Permit Apache Site Case ICUP2019-013: The Planning Commission held a
public hearing for the request by Danner, Inc. to grade approximately 500,000 cubic yards on 54
acres of land at the northwest corner of Keats Avenue and East Point Douglas Road. Danner, Inc.
has been operating similar activities at the site for approximately the past 15 years, including the
site to the north. Approximately 600,000 cubic yards of material has been removed. This request
is the second phase of the project to fine tune areas for future development.
The Planning Commission unanimously (5-0 vote) recommended approval of the conditional use
permit. This application will be on the April 17, 2019, City Council agenda.
Economic Development Authority
Development Update
April 4, 2019
Page 8 of 9
Economic Development
Annual Business Breakfast
The Annual Business Breakfast was held at 3M on Tuesday, March 26, from 7:00 a.m. to 9:00 a.m.
(but not with the Vikings) and author. Matt related his experiences in the NFL on how to become a
better leader and create effective teamwork.
Muddy Cow
Muddy Cow officially opened for business and held their grand opening/ribbon cutting celebration
on Tuesday, March 26, at 11:00 a.m. Muddy Cow is owned by Frank Greczyna and Pat Conroy.
After opening their first successful restaurant in Coon Rapids, they have opened locations in
Shakopee, Litchfield, Oak Park Heights, Burnsville, and now Cottage Grove.
Lodging Tax
The Letter of Intent between the City of Cottage Grove and the Cottage Grove Area Chamber of
City Council Meeting. The Cottage Grove Area Chamber of Commerce is beginning the process of
reaching out to potential members for the Board of Directors of the Bureau. Once a Board of
Directors is preliminary established, the Bureau will apply to the State of Minnesota and Internal
Revenue Service for a 501(c)(6) non-profit status. When that process is complete, a lodging tax
ordinance will be brought before the Cottage Grove City Council.
Economic Development Authority
Development Update
April 4, 2019
Page 9 of 9
Airgas
This $54 million dollar project to develop an Air Separation Plant in the Cottage Grove Business
Park was approved at the March 20 City Council meeting. The project was featured on March 26,
2019, in an article by Finance & Commerce: https://finance-commerce.com/2019/03/cottage-grove-
to-get-54-million-airgas-plant/. The project is tentatively scheduled to begin in early summer of
2019.
Access to Employment Workgroup
With funding from the Minnesota Department of Transportation, Washington County formally
accepted the Transit Needs Study and its priorities on February 2018. To further advance these
priorities, the County is developing a Transportation Consortium. The Transportation Consortium
will focus on Access to Health & Wellness, Access to Employment, Access to the Community and
Region, and Access to the County.
Staff will be participating in the Access to Employment Workgroup, which will meet the first
Thursday of every month starting in April. The Access to Employment Workgroup will focus on
initiatives that increase economic self-sufficiency, including increased access to job readiness,
training, hiring, and retention supports through outreach, data sharing, financial support, and
collaborative solutions development.
Washington County Economic Development Workgroup
City of Cottage Grove staff attended the Washington County Economic Development meeting on
March 6, 2019, 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, from 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 undergone the process twice on over 50 acres to get them shovel-ready certified through
the Department of Employment and Economic Development and Xcel Energy.