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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: November 8, 2019 Activites that have taken place in the community that may have a potential impact on economic development activity: Discussion Staff Action Cottage Grove Bus Loop Economic Development Specialist Wolf and Management Norris Square Community Assistant Christ Hetland attended the Norris Square Meeting – September 5, Community Meeting to promote the Cottage Grove Bus 2019 Loop. Meeting with Kraus Andersen City Administrator Levitt, Acting Community and Economic – September 6, 2019 Development Director Costello, and Economic Development Specialist Wolf met with Kraus Andersen to discuss current and future projects in the community. Meeting with Photographer Communications Manager Scott Seroka and Economic Nathan Klok – September 10, Development Specialist Wolf met with photographer Nathan 2019 Klok to discuss photos to promote the City of Cottage Grove and develop a new display for ICSC. Cottage Grove Bus Loop Communications Manger Seroka, Economic Development Video Script Meeting – Specialist Wolf, and Management Assistant Hetland met to September 11, 2019 put together a script for the SWCTC video to promote the Cottage Grove Bus Loop. Cottage Grove Bus Loop Met with SWCTC to film a promotional video for the Cottage Video – September 19, 2019 Grove Bus Loop. Real Estate Equities Senior Planner Emily Schmitz and Economic Development Conference Call – September Specialist Wolf had a conference call with Real Estate 20, 2019 Equities to discuss a potential workforce housing project in the community. Conference Call with dk City Administrator Levitt, Acting Community and Economic Design – September 26, Development Director Costello, and Economic Development 2019 Specialist Wolf had a conference call with dk Design to discuss a market rate apartment project at the former City Hall location. Cottage Grove Area City Council and Staff attended the Cottage Grove Area Chamber Annual Dinner & Chamber of Commerce Annual Dinner and Awards Banquet. Awards Banquet – September 26, 2019 FABTECH Expo Conference Economic Development Specialist joined a conference call Call – October 3, 2019 with the State of Minnesota Department of Employment and Economic Development to discuss the upcoming FABTECH Expo in Chicago, IL to promote the State of Minnesota and the City of Cottage Grove. Development Inquiry Update November 8, 2019 Page 2 Cottage Grove Bus Loop Economic Development Specialist Wolf and Management Norris Square Community Assistant Christ Hetland attended the Norris Square Meeting – October 3, 2019 Community Meeting to promote the Cottage Grove Bus Loop. Cottage Grove Bus Loop The Economic Development Specialist Wolf and Management Legends of Cottage Grove Assistant Christ Hetland attended The Legends of Cottage Community Meeting – Grove Community Meeting to promote the Cottage Grove October 8, 2019 Bus Loop. SWCTC Business Park Video Economic Development Specialist met with SWCTC to film a – October 10, 2019 promotional video for the available land within the City of Cottage Grove. Cottage Grove Bus Loop The City of Cottage Grove held a ribbon cutting for the Ribbon Cutting – October 15, Cottage Grove Bus Loop to run every Tuesday from 10 am 2019 until 3 pm. ICSC Booth Discussion – Mayor Bailey, Councilmember Dennis, Acting Community October 16, 2019 and Economic Development Director Costello, Communications Manager Seroka, and Economic Development Specialist Wolf met to discuss the layout for a new booth for ICSC in 2020. In A Snap Video with Economic Development Specialist Wolf filmed In A Snap SWCTC – October 17, 2019 with SWCTC on projects happening in the community. SPAAR Meeting – October Economic Development Specialist Wolf met with the St.Paul 18, 2019 Area Association of Realtor’s Government Affairs Director Khayree Duckett to discuss residential projects in the community and the Real Estate Forum. MNCAR/FABTECH Expo – City Administrator Levitt, Acting Community and Economic October 28, 2019 Development Director Costello, and Economic Development Specialist Wolf met to discuss MNCAR and the FABTECH Expo. MNCAR Expo – October 30, Mayor Bailey, Councilmember Dennis, Acting Community 2019 and Economic Development Director Costello, and Economic Development Specialist Wolf attended the 2019 MNCAR Expo. Cottage Grove Area Economic Development Specialist Wolf attended the Chamber Annual Board Cottage Grove Area Chamber Planning Session to plan for Planning Session – October upcoming events and projects in 2020. 31, 2019 Meeting with School District City Administrator Levitt, Acting Community and Economic 833 – October 31, 2019 Development Director Costello, and Economic Development Specialist Wolf met with the Engineering and Planning Manager Daniel Hines to discuss their properties along East Point Douglas Road. Meeting to discuss the Acting Community and Economic Development Director Cottage Grove Area Visitor’s Costello and Economic Development Specialist Wolf met Bureau – November 1, 2019 with the Cottage Grove Area Chamber to discuss the proposed Lodging Tax and the Visitor’s Bureau. Development Inquiry Update November 8, 2019 Page 3 Meeting with Burton Land City Administrator Levitt, Acting Community and Economic Company – November 7, Development Director Costello, Senior Planner Schmitz and 2019 Economic Development Specialist Wolf met with Burton Land Company to discuss sites within the community that are available for development. Washington County Access Economic Development Specialist Wolf attended the to Employment Workgroup – Washington County Access to Employment Workgroup November 7, 2019 meeting. TO: Economic Development Authority FROM: Christine Costello, Acting Community & Economic Development Director DATE: November 7, 2019 RE: Development Update Building Permits Building Permit Statistics: Between October 1 and October 31, 2019, there were 390 building permits issued with a total valua- tion of $32,976,618, including 36 new single-family homes valued at $10,509,004 and 6 townhomes values at $1,146,458. Through October 31, the Building Division has issued 3,087 permits with a total valuation of $148,051,337, which includes 240 permits for new homes (both single-family detached and attached homes) valued at $65,426,870. Commercial Permit Valuation Comparison By Month 2018-2019 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - JanFebMarAprMayJunJulAugSepOctNovDec 2019 Valuation2018 Valuation Economic Development Authority Development Update November 7, 2019 Page 2 of 16 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 November 7, 2019 Page 3 of 16 Current Project Updates Building Construction Projects HERO Center: During the month of October, construction crews have worked to complete interior finishes and exterior site finishes and furnishings. The electrical final inspection has been conducted. A final walk through of the project for a temporary certificate of occupancy was done on October 30. Although the project is substantially complete, there is a large punch list being addressed. The City anticipates taking occupancy of this building in November. A reveal ceremony with Woodbury and Cottage Grove City Councils is planned for November. Main entrance of the HERO Center Rear elevation of HERO Center Renewal by Anderson: During the month of October, site utility work continued and building construc- tion continued. The contractor is erecting steel and roofing. Due to the long-lead time associated with public utility fixtures, conflicts with private utilities, - ture, relocation of the overhead power lines, and reconstruction of 100th Street along the property will begin in the spring of 2020. This project is anticipated to be complete by July 2020. Photographs are attached at the end of this report. Up North Plastics: During the month of October, building foundation and grading for the project con- tinued. All underground plumbing, footings, foundation, and retaining wall work have substantially completed. They are currently erecting the steel sub-structure. Site utility and building structure work isanticipated to continue through November with wall panel installations to begin by late November. This project is anticipated to be complete by late fall of 2020. Building steel construction Foundation construction along western side of new building Economic Development Authority Development Update November 7, 2019 Page 4 of 16 Menards: The renovation project of the exterior garden center is moving forward with footings being completed and exterior walls being constructed. The permit for the interior mezzanine project, which consists of a 12,441 square foot interior remodel with a $600,000 construction value, should be issued mid-November. The exterior storage structure needs some exterior wall finishes to be completed; however, this area will be stocked and open to the public soon. Extra Space Storage: This project includes the addition of three new storage buildings, an outdoor , and stormwater treatment improvements on the parcel to the south of the existing Extra Space Storage facility along West Point Douglas Road. During the month of October building pad grading and utility connections were completed, and grading for stormwater im- provements and construction of the buildings began. Underground water service, storm pipe, partial pond grading, and concrete work for Building A, Building B, and a portion of Building C have been completed. Block exterior walls are being constructed for Building A. During November building con- struction will continue. This project is anticipated to be complete and open for business by April of 2020. Economic Development Authority Development Update November 7, 2019 Page 5 of 16 Park Place Storage Building C: This project is substantially complete and should be ready for occu- pancy soon. Oasis Chiropractor: The exterior façade project should be completed this week. Oasis Chiropractic and Wellness Center was the recipient of the EDAFaçade Improvement Program grant. Hound Around: The framing, underground plumbing, heating rough-in, and electrical rough-in inspec- tions for the kennel addition have all been approved. Air Gas: Inspections have been conducted for three large equipment footings. The contractor has requested being allowed to work during normal working hours on Saturdays and Sundays, which has been granted. Ice Arena: The refrigeration project is substantially complete. Former City Hall/BEC Building Demolition: During the month of October, the contractor demolished and removed the former city hall building and restored the site. This project is complete. Economic Development Authority Development Update November 7, 2019 Page 6 of 16 Public Improvement Projects Ravine Parkway: During the month of October, crews completed the section between Hinton and Innsdale Avenues. The roadway was striped, signed, lit, and fully opened to traffic in mid-October. Contractors will continue to work on punch-list items for the next several weeks. This project is complete. Ravine Pkwy. looking west at Ideal Ave. Ravine Pkwy. near Ideal Ave. Jamaica Avenue and 95th Street Traffic Signal Project: This project includes reconstruction and re- alignment 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 October, the box culvert installation was finished, and the roadway was reopened to traffic on October 28. Contractors will continue to work on restoration over the coming weeks. Reconnection of the gas line that was taken out of service to accommodate the box culvert installation is anticipated to be complete during the first week of November. Once this utility reconnection is completed, contractors will work to replace the paved trail impacted by the project. We anticipate signal pole installation will be done by the end of January 2020. Jamaica Avenue near 61 looking south West side of new box culvert under Jamaica 70th Street and Hinton Roundabout: This project began in June. During the month of October, crews completed the remaining work for this project. Contractors will continue to work on punch-list items over the next several weeks. This project is complete. Economic Development Authority Development Update November 7, 2019 Page 7 of 16 Roundabout north of 70th looking south Roundabout north of 70th looking west Water Utility Expedited Projects: This project will include extending municipal water service to 159 homes in to two residential neighborhoods impacted by PFC contaminated water as part of the MPCA approved 3M Settlement Expedited Project. For the 36 homes affected in the Granada Avenue neigh- borhood, watermain will be extended from 70th Street to the existing utility stub east of their develop- ment. For 123 homes affected in the River Acres neighborhood, watermain will be extended from 100th Street south along Ideal Avenue. -home surveys to identify project scope for each indi- vidual home. The City also held neighborhood meetings for the project. The meetings were well attended by residents. City, MPCA, and MDH staff were all in attendance at these meetings. Presen- tations were given an overview of the projects, along with information regarding City water bills and water quality. Following the presentations were group Q&A sessions with the residents. Staff were also available after the meeting to answer one-on-one questions. Granada Avenue Watermain Extension River Acres Watermain Extension Economic Development Authority Development Update November 7, 2019 Page 8 of 16 Subdivisions and Developments Calarosa Lennar: Grading, public utilities, and partial street construction of the 2nd Addition was completed in the fall of 2018, with the remaining street, utility, and site work starting on April 22 with construction of the 3rd and 4th Additions beginning in early May. During the month of October con- tractors continued work on punch-list items, clubhouse construction progressed, and single-family home construction in the development continued. Due to cold temperatures, wet conditions, and lim- ited concrete crew availability, trail and concrete sidewalks in the 3rd Addition were not completed. Trails and concrete walks will be done in late spring of 2020. Summers Landing 3rd Addition Summergate: During the month of During the month of October, streetlight and sidewalk construction was completed. The final section of Mississippi Dunes Boule- vard, between 92nd Street and 90th Street, was opened to traffic at the end of October. With the exception of final streets, public infrastructure for this project is now complete. The contractor will continue to work on punch-list items and warranty items through the end of the construction season. Final streets will be completed in three years or when 90 percent of the homes in 3rd Addition are constructed, whichever occurs first. Parkview Pointe Summergate: The Parkview Pointe development is located on the north side of Military Road, north and east of Ravine Parkway. This project includes the development of 60 single- family lots and the extension of water and sewer utilities west on Military Road to the development. During the month of October, public utility and street installations were completed. Private utility con- struction and streetlight installations are anticipated to begin in early November. Sidewalk, light-pole, and site restoration are anticipated to be complete by June 2020. Gravel base and curb & gutter prior to paving Completed section of pavement Economic Development Authority Development Update November 7, 2019 Page 9 of 16 Bailey Woods Pulte: The Bailey Woods development is located west of the Highland Hills neighbor- hood and north of 65th Street. This subdivision includes the construction of 41 single family homes on a 17-acre parcel. During the month of October site grading was completed and installation of public utilities progressed. Due to unseasonable wet and cold conditions, construction of the permanent street section will not be completed in 2019. The developer will construct a temporary bituminous road section to allow for model home construction to continue through the winter. Permanent streets, side- walk, private utility installation, light-pole installation, and site restoration will likely be complete by the summer of 2020. West end of development Utility crews completing installations and roadway subcut Young Property Lennar: The Young Property development occupies the five-acre infill parcel located north of 65th Street between Calarosa and Pine Cliff. This project will include the construction of 10 single-family homes. During the month of September, site clearing was completed. No substantive work occurred during October. Existing home and outbuilding removal may begin in November. Grading, street, and utility construction are anticipated to be completed in 2020. Economic Development Authority Development Update November 7, 2019 Page 10 of 16 Young Property entrance at 64th Street looking Young Property entrance at 64th Street looking southwest west. Ravine Meadows Thone Development: Ravine Meadows will be a 26 lot, single-family housing de- velopment on the 9.85-acre parcel located between Military Road and Ravine Parkway. This project will include extending utilities north along Jeffery Avenue to Military Road. Site clearing, home removal, and private well sealing occurred in late October. Mass site grading will begin in early November. Street, sidewalk, and utility construction are anticipated to be completed by July 2020. Ravine Meadows site from Military looking Ravine Meadows site from Military looking southwest southeast Economic Development Authority Development Update November 7, 2019 Page 11 of 16 Planning Commission Planning Commission Meeting October 28, 2019 The Planning Commission met on October 28, 2019, and reviewed the following applications: Peterson Front Porch Variance: The Planning Commission held a public hearing for a requested variance that would allow for a reduced front yard setback for a front landing to be located 17.6 feet from the front property line. The existing structure on the property is an underground basement home. The applicant is proposing to construct a new above ground residence, but because of the height of the foundation (two feet above grade), the addition of a front landing is necessary to allow access into the above ground structure. The existing foundation is currently setback approximately 27 feet 2-3/4 inches, which is approximately 2 feet 10 inches less than the required 30-foot required setback. Two existing accessory structures on the property do not meet the required setbacks and are being removed. Existing Front Yard Setback Detail New House Plans with Encroachment West The Commission, on a unanimous vote (6-to-0), recommended approval. This request will be heard at the November 20, 2019, City Council meeting. Economic Development Authority Development Update November 7, 2019 Page 12 of 16 Calarosa East Zoning Amendment and Preliminary Plat: U.S. Home Corporation (Lennar), applied for a zoning amendment for the fifth and final addition of the Calarosa development, which will be located west of Inwood Avenue and north of 65th Street. The proposed addition includes 121 detached single-family homes, 54 townhome units, and 13 outlots. The detached single-family units are pro- posed on the north end of the addition with the townhouse units in the southeast corner. Single-family lot widths range from 75 feet wide to 55 feet wide with the townhouse lots proposed at 25, 30, and 35 feet wide. As a part of this development, a portion of 65th Street would be required to be removed along the south side of the town- house area. Half of this vacated portion of the roadway would be deeded to the adjoining property owners to the south. The developer has proposed an intensive landscape buffer along the south side of the development area. The developer would also be responsible for costs associated with upgrades to Inwood Avenue to the development limits to support the required ingress/egress from the multi-family portion of the project. The Commission unanimously voted (6-to-0) to recommend approval. This request will be on the November 20, 2019, City Council agenda. CIP 2020-2040: The City, on an annual basis, updates its five-year Capital Improvement Plan (CIP) in order to provide an estimate of capital funding for projects requiring authorization from the City Council. Capital Improvement Plan projects include construction of public buildings, parks, streets, and utilities. The total proposed funding for the 2020-2024 period is $99 million, which is listed in the complete CIP. Updating of the CIP also needs to the CIP is a part of the Comprehensive Plan, the annual update to the CIP also requires an amend- ment to the Comprehensive Plan and public hearing before the Planning Commission. The Commis- sion recommended approval of the CIP 2020-2024 on a 6-to-0 vote. The City Council will take final action at their meeting on November 20, 2019. Planning Commission Meeting November 25, 2019 The following applications were received for the November 25 Planning Commission agenda: Capp Industries Cases TA2019-062, CUP2019-063, & SP2019-064: BDH Design, on behalf of Capp Industries, Incorporated, has applied for a zoning text amendment to City Code Title 11-10, Business Districts, to allow warehouses as a conditional use in the PB, Planned Business District; and a condi- tional use permit and site plan review to allow construction of a 120,000 square foot office/warehouse building on a vacant land located between 7858 and 8585 West Point Douglas Road South. The proposed building will be a spec building, and final tenants are not known at this time. Capp Industries Economic Development Authority Development Update November 7, 2019 Page 13 of 16 brought forth a concept plan review for this proposed project in February 2019; Council approved that concept plan. Northern Natural Gas Case CUP2019-061: Northern Natural Gas has applied for a conditional use permit to expand the existing town border station, build two buildings to shelter a regulator and control equipment, and add additional screening around the exterior of the yard of their property at 10251 Old 70th Street South. Julen Lot Split Case MS2019-060: Robert and Joan Julen have applied for a minor subdivision to subdivide a 70-acre parcel of land located at 10600 Ideal Avenue South into two parcels consisting of 30 acres and 40 acres. Economic Development Authority Development Update November 7, 2019 Page 14 of 16 Economic Development MNCAR Expo On Wednesday, October 30, the City of Cottage Grove attended the 2019 MNCAR Expo in Minneap- olis. The event brings together area brokers, developers, and commercial investors and is an oppor- tunity to promote the City of Cottage Grove for potential new developments. The event was attended by Mayor Bailey, Councilmember Dennis, Economic Development Director Christine Costello, and Economic Development Specialist Matt Wolf. Overall many good conversations were had regarding the commercial corridors at 80th Street, Jamaica Avenue, the Cottage Grove Business Park, and other areas within our community. DARTS The Cottage Grove Bus Loop Grand Opening was Tuesday, October 15th, at 10:30 a.m. The ribbon cutting took place at the South Washington County Schools Community Education Senior Center. The ribbon cutting featured bingo and a raffle for bus riders. Designated bus stops include Hy-Vee, the Senior Center, Aldi, Cub Foods, Target, Walmart, and Allina Health. The route map is below. Economic Development Authority Development Update November 7, 2019 Page 15 of 16 FABTECH Expo Economic Development Specialist Matt Wolf will be attending the FABTECH Expo from November 11 to ing, and finishing event. It brings together world-class suppliers and the latest industry products and de- velopments. Cottage Grove will be attending the event with the State of Minnesota and promoting the Business Park to potential businesses looking to relocate or expand. Marketing materials for the event are being put together, and a draft of the flyer promoting the Cottage Grove Business Park that will be distributed at the event is attached. Economic Development Authority Development Update November 7, 2019 Page 16 of 16 Renewal By Andersen &¤£¤± « 2¤²¤±µ¤ " ­ª ®¥ -¨­­¤ ¯®«¨² 4§¤ "¤¨¦¤ "®®ª /¢³®¡¤± ͻ͹ͺ΂ Summary of Economic Activity Employment and Wages Prices I-1 &¤£¤± « 2¤²¤±µ¤ " ­ª ®¥ -¨­­¤ ¯®«¨² Consumer Spending Manufacturing Services Agriculture, Energy, and Natural Resources Construction and Real Estate I-2