HomeMy WebLinkAbout4.4 9165 and 8991 West Point Douglas Property Appraisal
TO: Economic Development Authority
FROM: Matt Wolf, Economic Development Coordinator
DATE: May 29, 2020
RE: 9165 and 8991 W. Point Douglas Property Appraisal
Introduction
Based on Minnesota State Statute 469.101 an economic development authority in the State of
Minnesota may acquire by lease, purchase, gift, or devise the needed right, title, and interest in
property to create economic development districts. The Economic Development Authority (EDA)
currently purchases property to facilitate development in the Cottage Grove Business Park such
as Airgas, Renewal by Andersen expansion, and Gardenworld project. Further the EDA looks to
develop blighted parcels or parcels that are not consistent with future land use or development
plans within the community. This was the case in June of 2019 when the EDA approved
purchasing the former transmission shop at 7470 East Point Douglas. In all cases the EDA and
the City of Cottage Grove work to leverage these parcels for investment in the form of property
tax and jobs in the community.
Discussion
9165 and 8991 West Point Douglas Property – Langdon Village
The properties located at 9165 West Point Douglas Road South (9.27 acres) and 8991 West Point
Douglas Road South (1.8 acres) are both currently for sale. Both properties are part of the
Langdon Village area, which is located southeast of Highway 61/10 and Jamaica Avenue.
Currently the area is made up of 65 acres including 12 residential properties, two commercial
properties, and the City of Cottage Grove Public Works facility. Of the 65 acres the Cottage Grove
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Economic Development Authority currently owns eight acres of the land south of 96 Street, which
is currently leased for farming. The Langdon Village is guided per the City’s 2040 Comprehensive
Plan as mixed-use development, with the plan calling for:
“a walkable mix of commercial and community businesses and activities, serving a new higher
density neighborhood as well as the broader city. It could expand Cottage Grove’s retail, both in
terms of land area, and in terms of offering a different character of retail development” (page 26
City of Cottage Grove Comprehensive Plan).
A master plan was created for the area in 2018 by Stantec that demonstrates how the area
could potentially develop in the future. With a mix of commercial, residential, and mixed use.
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The plan also depicts the future West Point Douglas and 100 Street realignment (Southwest
Arterial Study). Recently developers have shown interest in the area with MWF Properties
approaching the City for the development of a 174 unit workforce housing project. The project
did not receive the necessary funding through the Department of Minnesota Housing but the
Economic Development Authority
8991 W. Point Douglas Appraisal
May 29, 2020
Page 2 of 4
developer remains interested in the community. To facilitate this area for development it is in
the City’s best interest if the Economic Development Authority explore purchasing these
properties for future development that is in line with the Comprehensive Plan and remove blight
in the area.
Figure 1 Concept plan of Langdon Village completed by Stantec in 2018.
Appraisal Quotes
All though both 9165 and 8991 West Point Douglas both have buildings on their parcels. The
true benefit of potentially purchasing the properties comes in the form of controlling the land for
redevelopment in the future.
The property at 9165 West Point
Douglas is the former Majestic
Ballroom site and sits on 9.27 acres of
land. The building is currently is in
disrepair and not inhabitable. The
property at 8991 West Point Douglas
is currently a single-family residential
home that sits on 1.8 acres. The
concept plan completed by Stantec in
2018 calls for both properties to be
commercial and/or mixed-use land
Figure 2 Aerial of 9165 and 8991 West Point Douglas
uses.
Economic Development Authority
8991 W. Point Douglas Appraisal
May 29, 2020
Page 3 of 4
To do the proper due diligence and to make sure the EDA does not overpay for either property if
moving forward with a potential purchase of either site. Quotes for appraisals for the properties
were obtained from BRKW Real Estate Valuation Service and Patchin Messner Valuation
Counselors. The quote from BRKW was $5,800 for the scope of work and from Patchin
Messner the quote was for $4,500. The recommendation is that the EDA move forward with
Patchin Messner Valutaion Counselors for $4,500. The funds to pay for the appraisals will be
from the Economic Trust Fund, which is a separate fund used by the City of Cottage Grove to
support economic development work in the community.
Potential Investment: Return and Challenges
Before any money is spent it is important that all potential strengths and weaknesses are known
about the sites to make the best decision moving forward on any potential appraisal and purchase.
The below table layouts out a SWOT analysis for the sites.
Table 1 Strengths, Weaknesses, Opportunities and Threats for the potential purchase or sale of the properties.
Strengths Weaknesses Opportunities Threats
Great site lines, Currently traffic Long term Retail and
visibility, and counts are not high investment in the restaurants want to
access from enough to attract community that can be on or as close
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Highway 61/10. commercial allow for the City to as possible to 80
development until help develop its Street and East
Langdon develops vision for the area. Point Douglas
further. Intersection
Remove obsolete Infrastructure is not The parcel can be Both properties
legal-currently available competitively priced have remained on
nonconforming at site and any to allow for the market during a
uses and blighted project will need development before strong economic
buildings assistance more costly sites at period without
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extending the both 80 Street and being sold.
infrastructure to the Jamaica
site. commercial
corridors.
Gain controlling No current or future Potential in future Langdon Village
interest of parcels plans for to purchase may be looked over
to leverage transportation, additional parcels for the Shoppes at
maximum which helps create surrounding the site Cottage View or
investment for the and attract high-to create Langdon deter development
community. density residential. Master Plan. at the Shoppes at
Cottage View if it
develops first.
If purchased by the EDA both properties would either be sold as a commercial or multi-family
high density with the need to demolish both buildings for any potential future development either
by the EDA or a future developer. The appraisals will give the Economic Development Authority
the necessary information to determine if the land is in line with other recent market sales in the
Economic Development Authority
8991 W. Point Douglas Appraisal
May 29, 2020
Page 4 of 4
community. Using the appraisals to first determine if an offer should be made on the properties
and if so, determine what is the baseline for an offer on the properties.
Recommendation
Authorize the appraisal of 9165 and 8991 West Point Douglas by Patchin Messner Valuation
Counselors for the total cost of $4,500 to be funded by the EDA Trust Fund.
Attachments
Langdon Village Concept – Stantec Memo
Patchin Messner Valuation Counselors Appraisal Quote
2335 Highway 36 West, St. Paul MN 55113
Memorandum
DATE: April 30, 2018
TO: Jennifer Levitt, Cottage Grove Community Development Director and City Engineer
FROM: Phil Carlson, AICP, Senior Planner
RE: Langdon Village Concept Plan
Introduction
You have asked Stantec to update the concept plan for the redevelopment of the Langdon
Village area of Cottage Grove, in the southeast quadrant of Highway 61 and Jamaica Avenue.
The impetus for this revised concept is a proposed housing project on one of the City-owned EDA
parcels in the area. Previous plans for Langdon Village prepared by Hay Dobbs in 2011 (see
attached) related to planning for the Red Rock transit corridor anticipated a future commuter rail
station on the west side of Langdon Village. That is no longer a likely option in the near term, so
that element can be removed from the plan. The previous concept also assumed a full-block City
Park and a three-block-long Public Greenway, both of which are attractive elements for a
redeveloped Langdon Village, but not in the right location to take advantage of the anticipated
new housing project.
Developing a revised concept plan is not a substitute for a thorough analysis and planning
process for the area. There are a number of questions and variables to be considered, including:
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The alignment of the extension of 100 Street and Innovation Road in a reconfigured
Innovation Road interchange is important to the redevelopment of Langdon Village.
Different alignment options would have very different impacts on properties in the area
and on the potential land use that might be developed.
There are existing public streets in the area with commercial and residential uses abutting
them. Redevelopment may vacate some of those streets (and add new ones) but we
need to know the status of underground utilities in the various rights-of-way in order to
prepare feasible plans.
Significant public park and greenway uses are proposed and should be planned to serve
the immediate area and to connect to the larger City and regional park and trail system.
The design and planning of the area should consider the market for various uses and
respond to those needs.
Property owners and other stakeholders should be consulted before plans get too far
along.
April 30, 2018
Jennifer Levitt, City of Cottage Grove City
Page 2 of 10
Langdon Village Concept Plan
Concept Plan
The Langdon Village Concept Plan is attached on the following page and illustrates our
preliminary thoughts on the redevelopment of the area. Other issues are called out on the
features of the plan are:
The type and location of land uses is similar to the Hay Dobbs station area plan.
The Park and Public Greenway are essentially the same as the Hay Dobbs plan, but moved
south one block to front the proposed housing project on the southern City EDA parcel.
Commercial development is shown in the NE triangular parcel on the east side of West
Point Douglas Rd, bounded by Hwy 61 and the 100th Street extension.
The proposed affordable housing project is turned 90° from a previous version, so that its
two long facades face the Park and the Greenway.
A residential building is placed at the west end of the Greenway to provide a visual
terminus to that view, since there is no transit station and plaza.
Residential uses are shown along the west edge (railroad) of the Village because these
areas are likely too far from West Point Douglas Road to be attractive for commercial uses.
A residential building is shown on the far western parcel overlooking Jamaica Ave and the
roundabout, which is currently the vacant end of the mini-storage property. Because
access up the grade from West Point Douglas Road is difficult and not ideal for
commercial uses, this would be a good site for higher density residential near the other
mixed uses in the redeveloped Langdon Village. This parcel currently has a holding pond
on it, so we need to determine if development is feasible, but ponding might be placed
under the parking to replace that function, making better use of the parcel possible.
A West Point Douglas Road and the 100th
Street extension. Land Use Plan we suggested this distance
in the mixed use land use discussion, requiring commercial uses at street level within that
area. Some of the residential uses in this Langdon Village Concept go against this idea, but
for good reasons:
o The residential uses shown on the far eastern and far western ends of the concept
do have close access to the arterial roadways on the west end due to grades; on
the east end due to the 100th St extension rising to clear the RR tracks.
o The affordable housing project is a key component of the area and occupies a
est Point Douglas Road.
April 30, 2018
Jennifer Levitt, City of Cottage Grove City
Page 3 of 10
Langdon Village Concept Plan
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100 Street Alignment Options
The 2008 Southwest Cottage Grove Transportation Study looked at alignment options for a
reconfigured Innovation Road Interchange with Highway 61, to the southeast of Langdon Village.
There was a preferred alignment that came out of that study, but it would cross through the
southeast corner of Langdon Village, impacting the development of several parcels. Various
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of the issues.
3M is a major property owner adjacent to Langdon Village and we understand that the preferred
, whereas the other alignments would separate
more 3M property on the north side of the realigned roadway. Assuming this is a key issue, the
Hybrid Alignment option cuts through the various properties in such a way as to allow swapping of
more or less equal parcels to create an end result that may be satisfactory and allow reasonable
development by all parties. This series of assumptions is illustrated on the attached three pages of
Hybrid Alignment maps. They show:
The existing condition shows the roadway cutting through the Sievert and Florin properties
at the south end of Langdon Village.
Sievert and Florin could swap roughly equal corners of their properties, so there would not
be remnants orphaned on either side of the new roadway.
roadway.
The new Florin parcel and the remnant 3M parcel are about equal in size and might also
be swapped.
As a result, Florin would get a developable parcel adjacent to Langdon Village (as they
had previously).
3M would be made whole by having about the same amount of property, but contiguous
and not separated by the new roadway.
We look forward to reviewing these concepts and ideas with you and to a more thorough process
of understanding Langdon Village and planning for its successful future.
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LANGDON VILLAGE LONG TERM STATION AREA CONCEPT PLAN (YEAR 2040+)
LANGDON VILLAGE STATION AREA
Red Rock Corridor Station Area Planning and Site Master Planning
www.RedRockRail.org
Hwy 61
West Point Douglas Rd
3M Property
Residential High Density
Commercial
Mixed Use Commercial/Residential Above
Park/Greenway
Storm Pond
Gas
Storm Pond under Parking
City EDA Parcels
Langdon Village Concept Plan
North
Cottage Grove, MN
4-27-2018
Potential
Entry monument
Gas line -
Plan park & trail
commercial
at end of
uses may need exceptions
easement spacing of
connections both
development on
Greenway for
for west parcel due to
no buildingsaccess points on
internally and
remnant parcel
visual terminus
access and east parcel for
W Pt Douglas Rd
externally
north side ofW Pt
EDA housing project
Douglas Rd
Hwy 61
West Point Douglas Rd
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Alignment of 100
Street connection
impacts
Residential (site
development of
access not OK
several properties
Replace/augment
for commercial)
storm pond with
underground
Building at end
3M Property
storage
Not all of EDA
of Greenway for
parcel needed for
visual terminus
housing project,
Maintain building allows street to
edge at street
cross for access to
around Park and
W Pt Douglas Rd
Greenway
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Need 98Street
connection
around EDA
parcel to W Pt
Douglas Rd
Gas
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100Street
connection
needs to rise to
clearance
Langdon Village Concept Plan Key Issues
North
Cottage Grove, MN
4-27-2018
Langdon
Stantec Option:
Hybrid Alternate
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Preferred Alternate
Alternate 1a
Alternate 1
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100Street
Title
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Langdon Village
100Street/CR 19 Alignment Options
Cottage Grove, MN
4-27-2018
Langdon
Stantec Option:
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realignment
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Florin
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100Street
Title
Langdon Village
Hybrid Alignment Existing Condition
Cottage Grove, MN
4-27-2018
Langdon
Stantec Option:
Hybrid Alternate
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Sievert
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separated
Resulting
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realignment
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parcels
Florin
3M
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100Street
Title
Langdon Village
Hybrid Alignment Property Swap 1
Cottage Grove, MN
4-27-2018
Langdon
Stantec Option:
Hybrid Alternate
Village
Florin
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Future
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Swap roughly
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interchange
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Sievert
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3M property is
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realignment
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contiguous
3M
3M
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100Street
Title
Langdon Village
Hybrid Alignment Property Swap 2
Cottage Grove, MN
4-27-2018