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HomeMy WebLinkAbout4.1 Economic Development Update/Business Inquiry Business/ Inquiry To: Honorable Mayor Bailey and EDA Members From: Matt Wolf, Economic Development Specialist Date: May 9, 2019 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action Business Park Owners Acting Community and Economic Development Director Meeting – Tuesday, April 9 Costello and Economic Development Specialist Wolf met with WAG Farms the owners of the Business Park to discuss upcoming projects. Renewal by Building Official Bob LaBrosse and Economic Development Andersen/Murphy Meeting – Specialist Wolf met with Opus Development to discuss the Wednesday, April 10 transitway link regarding the Murphy Logistics/Renewal by Andersen project. Brunton Architects & Acting Community and Economic Development Director Engineers – Friday, April 12 Costello and Economic Development Specialist Wolf met with Brunton Architects & Engineers to discuss potential development opportunities in the City of Cottage Grove. Discuss Shoppes at Cottage City of Cottage Grove staff met with Landform and Bolton & View – Monday, April 15 Menk to discuss the Shoppes at Cottage View site. Specifically how the future roadways will layout within the site. ESRI Meeting – Wednesday, City of Cottage Grove staff met with ESRI to discuss the April 17 potential for using their software services to improve efficiency in workflows as it relates to GIS. Cottage Grove Bus Circulator The Cottage Grove Bus Circulator Advisory Committee met Advisory Committee Meeting to discuss the Needs Assessment Survey and distributing – Thursday, April 25 out to the senior population in the community. Business Showcase – Mayor Bailey, City Administrator Levitt, Parks Director Saturday, April 27 Dockter and Economic Development Specialist Wolf attended the Cottage Grove Area Chamber Business Showcase and Kidsfest. At the event a survey was distributed to residents asking for their feedback on much they would be willing to pay for a potential Community Center. Façade Improvement Economic Development Specialist Wolf met with Oasis Program – Monday, April 29 Chiropractic owner Alex Sheppard to discuss the Façade Improvement Grant and the timeline of construction on the façade. Washington County Economic Development Specialist Wolf attended the Economic Development Washington County Economic Development Workgroup. Development Inquiry Update May 10, 2019 Page 2 Workgroup – Wednesday, The purpose of the meeting was to discuss Washington May 1 County CDA Economic Development Plan for 2020-2022. Washington County Economic Development Specialist Wolf attended the Access Transportation Consortium to Employment Workgroup meeting. The purpose of the Access to Employment group is to determine transportation solutions for employees Workgroup – Thursday, May to access work within Washington County. 2 Lemonade Days Meeting – Economic Development Specialist Wolf and Friday, May 10 Communications Manger Scott Seroka met with Chris Carey to discuss promotion of Lemonade Days. The purpose of Lemonade Days is to promote entrepreneurship in youth. TO: Economic Development Authority FROM: Christine Costello, Acting Community & Economic Development Director DATE: May 6, 2019 RE: Development Update Building Permits Building Permit Statistics: Between April 1 and April 30, 2019, there were 300 building permits issued with a total valuation of $13,407,838, including 29 new single-family homes valued at $8,282,670 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 May 6, 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 May 6, 2019 Page 3 of 9 Current Project Updates HERO Center: The underground plumbing is starting to be installed. During the month of April, con- struction crews completed precast panel installations, roof framing, and have completed 90 percent of their on-site utilities (storm sewer, sanitary sewer and watermain). Front entrance looking south Training building looking south East firing range elevation looking north South firing range elevation looking west Ice Arena: The north portion of the north rink is ready for concrete, and the south portion of the north rink is being graded. The south rink has all lower tubing installed and is being graded. The footings for the addition have been dug and should be poured this week. Menards: The project consists of an interior remodel with a construction value of $400,000 and a new storage building with a construction value of $834,176. The plans for both projects are currently being reviewed. Economic Development Authority Development Update May 6, 2019 Page 4 of 9 Up North Plastics: The Phase 1 plan has been reviewed, and the grading permit has been issued. Hope Glen Farm: The Grooms Building is substantially complete. Ravine Parkway: On June 6, 2018, the Ravine Parkway project was awarded to SM Hentges & Sons. Construction wrapped up for the 2018 season in November of 2018. The 2019 construction season began April 22. During the month of April, 65th Street was reclaimed from Ideal Avenue to just east of Innsdale Avenue. Sanitary, watermain, and raw watermain utilities installations began at Ideal and Idsen Avenues along 65th Street. Road subgrade preparations and final storm utility installations be- gan along Ravine Parkway, adjacent to Keats Avenue in preparation for the Keats Avenue turn lane construction. The pedestrian bridge deck was poured on April 29 and pedestrian trail grading along the Ravine Parkway corridor continued through April 30. Median concrete work and trail paving are scheduled to begin the week of May 6 between Jamaica and Joliet Avenues. Utility installations and curb and gutter placement is scheduled to occur along the 65th Street corridor throughout the month of May. Substantial completion of the Ravine Parkway project is anticipated by the end of July 2019. 65th Street at Ideal Ave looking west Ideal Ave at 65th Street looking south Ravine Parkway at Keats Ave looking north Ravine Parkway at Keats looking south Ravine Pkwy at Eastridge Woods looking west Ravine Parkway at Keats looking east Economic Development Authority Development Update May 6, 2019 Page 5 of 9 70th Street and Hinton Roundabout: Washington County will be reconstructing the intersection of Hinton Avenue and 70th Street with construction anticipated to begin in early June. The project will include closing Hinton Avenue at 70th Street during the duration of the project. During the month of April and through May, Xcel Energy will continue to relocate overhead poles and wires to ensure proper clear-space for the new roundabout. The intersection will remain open to east and west traffic along 70th Street, and to southbound traffic from Hinton. This project is anticipated to be complete by September 2019. 70th Street, east of Hinton looking east Hinton Avenue, south of 70th, looking north Project Layout 90th Street and Jamaica Traffic Control Cameras: During the week of April 29 traffic signal cameras were installed at the intersection of 90th Street and Jamaica Avenue. This installation will help improve signal timing for this intersection. Jamaica and 95th Street Traffic Signal Project: The City will be reconstructing the intersection at Jamaica Avenue and 95th Street in 2019. This project will include reconstruction and re- alignment of the intersection, construction of a new box culvert under Jamaica Avenue be- tween 95th and 97th Streets and installation of a traffic signal to help control traffic along Jamaica as our industrial park continues to ex- pand. Construction is anticipated to start in mid-summer with roadway improvements com- plete by fall 2019. Final completion will likely occur by spring of 2020. Economic Development Authority Development Update May 6, 2019 Page 6 of 9 Highway 95 (Manning Avenue) Safety Improvements: MnDOT plans to begin the second phase of the Manning Avenue Safety Improve- ments in May. This phase will involve reconstruction of Manning Avenue from 70th Street to Highway 61 and will be completed in two phases between 2019 and 2020. Phase 1 will consist of clearing the right-of-way (ROW) along Manning between 70th Street and High- way 61, utility relocations and reconstruction of a portion of the Highway 95 and 61 intersection, and reconstruction of the 110th Street/Highway 95 intersection. Construction will begin on May 6. A full closure at Highway 61 and Manning Avenue will go into place on June 3. The road closure is anticipated to be complete by August 28, 2019. Traffic will be detoured around the project via Keats Avenue and 70th Street. Calarosa 2nd, 3rd, and 4th Additions Lennar: The Calarosa 2nd, 3rd and 4th Additions include the development of 109 lots for single family and villa style homes, 6 lots for 6-unit townhomes, and 4 lots for quad style homes, located north of Calarosa 1st Addition, south of the Woodbury border, and west of Inwood Avenue. Grading, public utilities, and partial street construction of the 2nd Addition was completed in the fall of 2018. Remaining street, utility, and site work for 2nd Addition began April 22. Crews and material mobilized for construction of the 3rd and 4th Additions. Street, utility, and site work for this project is anticipated to be complete by August 2019. 65th Street at Idsen looking northwest 60th Street at Idsen looking south 60th Street at Idsen looking southeast 60th Street at Ideal/Tower looking east Kingston Fields 2nd Addition DR Horton: Kingston Fields 2nd Addition is the final piece of the de- velopment by DR Horton. This Addition will include construction of an additional 34 single family lots. Economic Development Authority Development Update May 6, 2019 Page 7 of 9 Construction of the 2nd Addition began on April 22. Street and utility construction for Kingston Fields 2nd Addition is anticipated to be complete by August 2019. Kingston Fields at 66th St. looking south Kingston Fields at 66th St. looking north Planning Commission Brown Farm Division Minor Subdivision & Variance: At their April 22 meeting, the Planning Com- mission held a public hearing for the request by Greg John to subdivide an approximate 10.17-acre parcel. The proposal would create a 3.01-acre parcel and a 7.16-acre parcel with the existing residence. The proposed 3.01-acre parcel would not meet the minimum width of 180 feet at the front property line and would have a reduced width of 91 feet. Given the steep slopes and dense vegetation on the south side of the parcel, the north side of the existing home site is the most practical for a new building site location to avoid removal of mature trees and additional grading. The property is not within the MUSA and would be required to provide private septic and well ser- vices. A primary and alternate septic site location would be required to be located to verify a building site exists on the newly created parcel prior to the issuance of any building permits. The Planning Commission unanimously (6-0 vote) recommended approval of the conditional use permit with the added condition that a joint access agreement for the shared driveway be recorded Economic Development Authority Development Update May 6, 2019 Page 8 of 9 prior to the issuance of a building permit. This request will be heard at the May 15, 2019 City Council meeting. May 29 Planning Commission Meeting: The Plann Wednesday, May 29, 2019, at 7:00 p.m.; this day and date change is due to the Memorial Day holiday. The following applications will be on the May 29 Planning Commission agenda: T-Mobile Antennas on the 81st Street Water Tower Conditional Use Permit Calarosa 4th Addition revised preliminary plat Murphy/Renewal by Andersen Expansion preliminary plat and site plan review with variances Economic Development Façade Improvement Program: Applications were due for the Façade Improvement Program on April 1. In total, the City of Cottage Grove received seven applications and interest from another six businesses that did not end up applying for various reasons. Although all seven applications qualified for the program, the EDA approved the Oasis Chiropractic and Wellness Building Project for the full funding of $25,000 by a vote of 5-to-0 at their meeting on April 9. The Oasis Chiropractic and Wellness Building was selected based on the following criteria: The project is highly visible from Highway 61, which is in Priority Area 1 of the program. The project is the most comprehensive and has the highest leverage of private investment to public investment. The proposed project improves the appearance of the East Point Douglas Road business community and its visibility to Highway 61/10. Is consistent with our Comprehensive Plan. Owner has been a local business owner for the past 16 years. The award of the funds to Oasis Chiropractic was approved at the April 12 City Council Meeting. Funds for this project will not be disbursed until the project is complete. Oasis Chiropractic will be required to sign a contract for a business subsidy to follow through on the improvements. The program also requires the business to submit copies of all receipt/invoices detailed in the project budget and photos of the completed work. After those items are completed and found to match the application, all grant funds will be awarded to the applicant. 7470 East Point Douglas Road Letter of Intent: The property at 7470 East Point Douglas Road, which is located at the corner of Hefner Avenue and East Point Douglas Road, is vacant and listed for sale. The previous use at the site has included a gas station and most recently the Village Transmission Shop, which closed in the fall of 2018. The current listing price for the property is $319,900. Economic Development Authority Development Update May 6, 2019 Page 9 of 9 Staff submitted a letter of intent (LOI) to purchase the property for redevelopment, with negotiations to consider a lower sales price due to the additional environmental investigation work to be completed. If a purchase of the site does take place, the funds would be paid from the EDA Trust. Project #904: GreaterMSP put out a request for information for a two-phase production and design facility for a company looking to expand in the Midwest region with a total of 391 jobs called Project #904. The request from the company is for a 100,000 to 200,000 square foot building that is available in the Minnesota metro with rail access. Currently Cottage Grove does not have a building with those specifications but due to the railroad access located next to the Southeast Industrial Park and the track record that Opus and the City of Cottage Grove have in getting projects through the approval process and built in a tight time frame, the City will partner with Opus and submit a prospective building. Bus LOOP Circulator: The Cottage Grove Bus LOOP Circulator Advisory Committee had their first meeting on Thursday, April 25. The Committee was established with the idea of including local senior housing businesses (i.e.; Legends of Cottage Grove, Norris Square) and regional transportation experts. The Committee discussed the needs assessment survey and how to best get it out to local seniors. The survey will be distributed by local senior housing facilities and the senior center and posted online for those interested. Results will be gathered by May 23 and tabulated for the next Advisory Committee meeting on May 30. Based on the results a preliminary route will be planned by the Advisory Committee for review by local stakeholders and potential community partners. Business Showcase: The Business Showcase was held on Saturday, April 27, from 10:00 a.m. to 2:00 p.m. at the Park High School Activities Center. The City of Cottage Grove had a booth this year and provided information on the potential Cottage Grove Community Center. At the booth, staff had tablets and asked attendees what they would be willing to pay for a potential Community Center both from a capital expense as part of their property taxes and as an operations expense in the form of a monthly membership fee. Staff also had information on housing and business developments currently in the community and the smart irrigation controller program. Summary of Economic Activity Employment and Wages - - - Prices - - I-1 Consumer Spending - - - - Services - - - Manufacturing - Construction and Real Estate - Agriculture, Energy, and Natural Resources - I-2