HomeMy WebLinkAbout4.1 Economic Development Update/Business Inquiry
Business/ Inquiry
To: Honorable Mayor Bailey and EDA Members
From: Matt Wolf, Economic Development Specialist
Date: July 3, 2019
Activites that have taken place in the community that may have a potential impact on economic
development activity:
Discussion Staff Action
Washington County Economic Development Specialist Wolf attended the
Transportation Consortium Washington County Transportation Consortium Steering
Steering Committee Committee Workshop to discuss and present the objectives
Workshop – Thursday, June of the Access to Employment Workgroup. Specifically
20 working to throughout Washington County to build circulator
buses and interconnecting them between cities.
WAG Farms Meeting and City Administrator Levitt and Economic Development
Closing Documents – Friday, Specialist Wolf met with WAG Farms to have them sign
June 21 closing documents for the Opus Development Project, which
is tentatively scheduled to close on July 10.
Chamber’s Board of Director Councilmember/EDA Vice President Dennis and Acting
Meeting – Thursday, June 28 Community and Economic Development Director Costello
attended the board meeting and both gave a update on the
community as well as various projects.
Closing on 7470 East Point The City of Cottage Grove closed and took ownership of the
Douglas Road – Friday, June former transmission shop at 7470 East Point Douglas Road
28 for a total price of $315,000.
Minnesota Department of City Administrator Levitt, Acting Community and Economic
Employment and Economic Development Director Costello, and Economic Development
Development Public Hearing Specialist Wolf attended the State of Minnesota Department
on the Renewal by Andersen of Employment and Economic Development public hearing
Project – Monday, July 8 in regard to Renewal by Andersen’s application for
assistance through the Minnesota Job Creation Fund.
TO: Economic Development Authority
FROM: Christine Costello, Acting Community & Economic Development Director
DATE: July 5, 2019
RE: Development Update
Building Permits
Building Permit Statistics:
Between June 1 and June 30, 2019, there were 391 building permits issued with a total valuation of
$12,705,460, including 21 new single-family homes valued at $5,708,848 and 4 townhome units in
one building with a valuation of $701,092.
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
July 5, 2019
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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
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Development Update
July 5, 2019
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Current Project Updates
HERO Center
During the month of June, site utility construction was completed, the south parking area received
curb and the first lift of asphalt pavement, and roof installations were completed. Brick façade pro-
gressed during the month of June with completion of the north face of the building. Window installa-
tions began, and the training outbuilding window installations were completed. During the month of
July, the building will be dried in and interior construction will progress rapidly as contractors will not
have to fight the elements any longer. Parking lot paving, fence installations, and landscaping instal-
lations will continue during July. Construction of the facility is on schedule to be substantially complete
by the end of October 2019 with final completion sometime in early winter.
Training area outbuilding window installations Front building elevation with brick façade in
place and window installations
Menards Expansion
This project will include construction of a 43,808 square foot warehouse structure and expansion of
their outdoor lumber yard area. The existing stormwater basin in the southeast corner of the property
will be replaced with an underground stormwater detention system to manage stormwater from the
site. During the month of June, the stormwater pond was removed, and construction began on the
underground stormwater detention system. Major improvements to the stormwater system are antici-
pated to be complete in July with work beginning on the outbuilding construction.
Stormwater pond removals Excavation for underground stormwater
detention system
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July 5, 2019
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Up North Plastics
This project will include a 428,350 expansion of the current Up North Plastics facility and the construc-
tion of additional extrusion towers. During June, storm sewer installation began and mass site grading
for the project continued. Site utility work is anticipated to continue through July with foundation con-
struction to follow shortly afterwards.
Grading and earthwork at Up North Plastics Grading and earthwork at Up North Plastics
Airgas
Airgas will be located south of the intersection of Jamaica Avenue and 100th Street. The facility de-
velopment will include improvements to an 8.5-acre parcel west of WAG Farms Dog Park and con-
struction of a 17,000 square foot industrial facility (air separation plant), two tall air boxes (cooling
towers), and an Xcel transmission substation. The development will also include stormwater improve-
ments and connection to City utilities. This project was approved in March and construction began in
May. During the month of June, mass site grading was completed, and work on site utilities began. In
July, site utilities are anticipated to be complete with work beginning on building and substation foun-
dations. Due to the lengthy process of permitting for an Xcel transmission line and the long lead time
for the specialized mechanical equipment required to operate the facility, project completion is not
anticipated until October 2020.
Watermain installation Building foundation preparation work
Jamaica and 95th Street Traffic Signal Project
The City will be reconstructing the intersection at Jamaica Avenue and 95th Street in 2019. This pro-
ject will include reconstruction and realignment of the intersection, construction of a new box culvert
under Jamaica Avenue between 95th and 97th Streets, and installation of a traffic signal to help control
traffic along Jamaica as our industrial park continues to expand. During the month of June, gas and
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Development Update
July 5, 2019
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-
pleted. Major construction activities are anticipated to begin in July with anticipated traffic impacts and
lane shifts.
the anticipated schedule.
a
Project Layout
70th Street and Hinton Roundabout
Washington County will be reconstructing the intersection of Hinton Avenue and 70th Street. During
the month of June; the bypass lane construction was completed and traffic was rerouted to the bypass,
closing Hinton Avenue to the south for the duration of the project; roundabout construction on the east
and west legs progressed with utility installations and relocations occurring and ending with class 5
placement during the last week in June. This project is anticipated to be complete in September.
Roundabout construction on south leg of project Roundabout construction on south leg of project
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Development Update
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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. Construction for the 2019 season began on
April 22. During the month of June, the Keats Avenue turn-lane was constructed, as was the final
eastern segment of the Parkway, outcroppings and decorative concrete placement was completed
between Keats and Jamaica, irrigation and trail installations were completed between Keats and
Jamaica, and streetlight installations were nearly complete. Along the 65th Street segment, utilities
were completed, and work began on the road section. This project is anticipated to be substantially
complete and open to traffic by the end of July with final completion anticipated by the middle of
August.
Recently completed turn-lanes at Keats and Pedestrian bench and outcroppings at Ravine
Ravine Parkway looking north Parkway pedestrian bridge and trail.
Ravine Parkway at Keats looking west. 65th Street at Idsen Avenue Looking west
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Highway 95 (Manning Avenue) Safety Improvements
Construction of the second phase of the Manning Avenue Safety Im-
provements Project began in mid-May. This phase involves reconstruc-
tion of Manning Avenue from 70th Street to Highway 61, which will be
completed between 2019 and 2020. Clearing of the right-of-way and
construction limits along the corridor began on May 6, as well as private
utility relocations. During the month of June; construction on Highway
95 between 110th Street and Highway 61 was completed, and work
began on the 110th Street intersection reconstruction. The 2019 phase
of this project is anticipated to be complete and reopened to traffic by
October. Construction for the remaining section of Highway 95,
between 110th Street and 70th Street will be completed in 2020.
Calarosa Lennar
Calarosa 2nd, 3rd, and 4th Additions include the development of 109 lots for single family and villa
style homes, 6 lots for 4-unit townhomes, and 4 lots for quad style homes. This subdivision is 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 kicked off on April 22. Crews and material
mobilized for construction of the 3rd and 4th Additions. During the month of June, street and sidewalk
installations in the 2nd Addition were completed, and crews progressed with utility and street con-
struction in the 3rd Addition. Street, utility, and site work for this project is anticipated to be complete
by August 2019.
Class 5 tolerancing at Iden Ave. and 60th St. Sidewalk preparation along 60th St., east of
facing south Ideal Ave.
Kingston Fields DR Horton
The Kingston Fields development includes two additions. The 1st Addition was constructed in 2018
and includes 121 single family lots. During the month of June, paving of the trail along Jamaica Avenue
was completed. During the month of July, contractors will continue to work on punch list items. The
1st Addition public infrastructure is anticipated to be complete by the middle of July.
Kingston Fields 2nd Addition includes construction of the final piece of this development with DR
Horton. This addition will include construction of an additional 34 single family homes. Construction of
the 2nd Addition began on April 22. During the month of June, street pavement was completed. Side-
walk, trail installations, and private utility construction are anticipated to begin in July. All streets,
sidewalks, trails, utilities, and private utility work is anticipated to be complete by the end of July 2019.
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Paved trail at Ravine Parkway and Jamaica Completed street section at Jareau Court and
looking south 66th Street looking north
Hamlet Heights
The Hamlet Heights development includes 24 lots for single family homes. This development is
located on the existing dead end of Hamlet Avenue, just south of the Hamlet Park entrance. Construc-
tion for this project started in the late summer of 2018. Due to the late season start for the project,
streets for this development were not constructed in 2018. During the month of June, private utility
construction was completed. In July, contractors will continue to work on punch list items and street
light installations.
Overview of Hamlet Avenue from water Overview of Hamlet Heights
tower
Summers Landing 3rd Addition - Summergate
Summers Landing 3rd Addition includes 80 single family homes to the west of the 2nd Addition and
will complete the connection of Mississippi Dunes Boulevard to the north at Grenadier Avenue. During
the month of June, grading and utilities were completed. In July, street construction is anticipated to
begin. Construction of the streets and utilities for the 3rd Addition is anticipated to be complete by
August 2019.
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93rd Street at Mississippi Dunes Boulevard 91st Street at north end of development phase
looking west line looking west
Parkview Pointe Summergate
The Parkview Pointe development will occupy the McHattie-Gridley parcel on the north side of Military
Road, north and east of Ravine Parkway. This project will include the development of 60 single-family
lots and the extension of water and sewer utilities west on Military Road to the project. During the
month of June, mass site grading progressed, and sanitary sewer installations began along Military
Road. In July, mass site grading is anticipated to be completed and Military Road will be restored.
Utilities within the project site will progress. Streets and utilities for this project are anticipated to be
complete by October.
Sanitary sewer installation along Military Road Earthwork and grading at Parkview Pointe
Planning Commission
Planning Commission Meeting
The Planning Commission met on June 24, 2019, and reviewed the following applications:
Stan Koch & Sons Trucking: The Planning Commission held a public hearing on the requested
amendment to existing conditional use permit for expansion of the
legal nonconforming use to continue operations as a truck terminal, which includes the current
storage of semi-trailers, and to allow for new tenants who need additional items to be stored on the
site. The proposed expansion request includes specifically the ability to include an auto distribution
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Development Update
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facility with exterior storage and parking of new trucks, new cars that are in transit waiting to be
delivered, and exterior storage of portable pump systems and portable commercial generators on
site, located on property at 9450 Ideal Avenue South. The Planning Commission unanimously (6-
0 vote) recommended denial of the conditional use permit based on eight findings of fact. This
request will be heard at the July 17, 2019 City Council meeting.
Las Margaritas: The Planning Commission held a public hearing for the request by Stotko
Speedling Construction, on behalf of Mopeca Real Estate, LLC for a conditional use permit to allow
a 6,200 square foot restaurant with liquor at 7165 East Point Douglas Road South; a site plan
review, including exterior elevation remodeling and an outdoor
patio addition; and a variance to minimum parking require-
ments. Las Margaritas has operated at their current location
in the Shoppes at Gateway North since 2004. The current
space is limited to 160 seats with a total of 92 shared parking
spaces. The proposed new location, the previous Perkins site,
would allow for 222 proposed seats and 65 parking spaces.
The operations would include the sale of liquor.
The required number of parking spaces per the zoning code
is 130 spaces utilizing the 1 space per 50 square feet (the
greater). The variance request would utilize the 1 space per 3
seats options, requiring 64 spaces. The proposed site would
have 65 spaces, therefore meeting the request.
The applicant is proposing an exterior remodel that would be consistent with the Gateway North
Commercial District standards. The remodel would include the addition of a patio and other archi-
tectural features.
Proposed Front Elevation
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Proposed Rear and South Side Elevation
There was no testimony received at the public hearing on these applications. The Planning Com-
mission unanimously (6-to-0 vote) recommended approval of the conditional use permit, site plan,
and variance. This request will be on the agenda for July 17, 2019, City Council meeting.
Bailey Woods: Pulte Homes is the applicant for a zoning amendment and a preliminary plat for a
subdivision to be called Bailey Woods, which will be located on approximately 19.94 acres of land
north of 65th Street and east of the Highland Hills neighborhood. The current zoning of the parcel
is R-2.5, Residential; the developer is proposing a zoning change to R-3, Single Family Residential,
with a Planned Development Overlay (PDO). The plat will create 41 single-family residential lots
and one outlot.
The requested zoning amendment with the PDO would allow for flexibility in lot width and size. The
Developer is proposing a minimum of 65-foot width lots and reduced lot square footage under
10,000 square feet. In order to justify the request for reduced lot sizes, the developer has proposed
dedication of approximately 13 percent of the developable land
as park/open space. The zoning ordinance requires a minimum
of 10 percent of developable lands to be dedicated, and the City
is willing to be flexible with the developers proposed plans.
No access will be permitted off 65th Street; therefore, the only
access to the site will be from Highland Hills Lane, which will lead
to the newly created street to be named Highland Hills Curve.
The developer has proposed to continue the earth berm along
65th Street from the Highland Hills neighborhood, which will pro-
vide screening for the 10 proposed lots abutting 65th Street within
Bailey Woods. The developer has agreed to record a covenant
against each of these 10 properties in order to require those prop-
erty owners maintain to the back of the curb of 65th Street. Fail-
ure to maintain this right-of-way allows the city to mitigate and
assess the property owner. No HOA is being proposed for this
development as there is no proposed monument sign or land-
scape islands within the site.
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The Pulte products will range in price point from high $300,000 to high $400,000. Pulte offers single-
family ramblers and single-family two-story homes from 1,700 square feet to 2,800 square feet;
typically, 2-3 bedrooms with 2-2.5 baths. Exterior materials consist of a variety of sidings, textures,
and window treatments to break up the façade.
The Planning Commission held the public hearing at which two residents from the Highland Hills
neighborhood to the east expressed concerns related to lot sizes and continuity between the exist-
ing development and the proposed Bailey Woods development. The Planning Commission unani-
mously (6-to-0 vote) recommended approval of the zoning amendment and preliminary plat. The
City Council will take final action on this proposed subdivision at their July 17, 2019, meeting.
Economic Development
7470 East Point Douglas Road
The purchase of the former service shop at 7470 East Point Douglas Road was completed on Friday,
June 28, for a total cost of $315,000. Staff will be gathering estimates for demolishing the building
through July 11. The best quote will go before the City Council for approval at their July 17 meeting.
The demolition is tentatively expected to be completed by October 18, 2019.
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EDA River Boat Cruise
The City of Cottage Grove Economic Development Authority will be hosting their biennial river boat
cruise down the Mississippi on Tuesday, August 13, from 11:00 a.m. to 1:00 p.m. This event is a way
to say thank you for the support, dedication, and commitment to our partners in development in the
industrial and commercial sectors. Save the dates have been sent out and more information on the
event and the guest speaker will be announced soon.
Pizza Ranch Sale of Land
A local franchisee of Pizza Ranch locations in the Minneapolis/St. Paul metro has agreed to pay
$600,000 for the purchase of the 1.7-acre Economic Development Authority parcel of land just to the
north of Muddy Cow. A letter of intent was signed between the parties, and a purchase agreement will
be brought for approval to the EDA meeting on Tuesday, July 9, before going before the City Council
on Wednesday, July 17. Although the plans are tentative, the Cottage Grove Pizza Ranch would be
The business
owner has indicated they will be working to submit their project for site plan approval at the August
Planning Commission meeting.