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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: 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 Page 2 of 13 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 July 5, 2019 Page 3 of 13 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 Economic Development Authority Development Update July 5, 2019 Page 4 of 13 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 Economic Development Authority Development Update July 5, 2019 Page 5 of 13 - 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 Economic Development Authority Development Update July 5, 2019 Page 6 of 13 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 Economic Development Authority Development Update July 5, 2019 Page 7 of 13 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. Economic Development Authority Development Update July 5, 2019 Page 8 of 13 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. Economic Development Authority Development Update July 5, 2019 Page 9 of 13 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 Economic Development Authority Development Update July 5, 2019 Page 10 of 13 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 Economic Development Authority Development Update July 5, 2019 Page 11 of 13 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. Economic Development Authority Development Update July 5, 2019 Page 12 of 13 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. Economic Development Authority Development Update July 5, 2019 Page 13 of 13 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.