HomeMy WebLinkAbout4.1 Business Inquiry
Business/ Inquiry
To: Honorable Mayor Bailey and EDA Members
From: Christine Costello, Economic Development Director
Date: March 26, 2021
Activites that have taken place in the community that may have a potential impact on economic
development activity:
Discussion Staff Action
Meeting February 17, 2021 Senior Planner Schmitz and Economic Development
Director Costello met with resident Lisa Ramos who
expressed interest in 7470 East Point Douglas Road for a
coffee shop. Staff shared details on zoning and the Planning
Commission and City Council process.
Virtual Meeting, February 18, Senior Planner Schmitz, Public Works Director Burfeind, and
2021 Economic Development Director Costello met with RJ Ryan
and Mohgan Hansen on behalf of their client Carmen Carter
who is interested in opening an event center in Cottage
Grove. The discussion was focused on the former Majestic
Ballroom site.
Board Meeting, February 25, Councilmember Dennis and Economic Development Director
2021 Costello attended the Cottage Grove Area Chamber of
Commerce monthly board meeting.
Webinar, March 1, 2021 Economic Development Director Costello attended a
webinar hosted by the Federal Reserve Bank and focused
on systemic racism in our housing markets and its impact on
economic outcomes for all Americans.
Webinar, March 2, 2021 City Administrator Levitt and Economic Development
Director Costello attended the Central Division meeting of
ICSC. The webinar focused on COVID impacts on business
and insight from industry experts.
Grand Reopening, March 12, Mayor Bailey and Councilmember Thiede attended the
2021 grand reopening of Snap Fitness.
Webinar, March 16, 2021 Economic Development Director Costello attended a
webinar hosted by Xcel Energy. The webinar discussed Xcel
Energy’s current real estate offering such as providing
shovel ready sites (Cottage Grove has two certified sites
with Xcel) and their new focus on 500 acre or more sites with
high electric capacity. The webinar also provided an update
on the state of the economy, what site selectors are seeing
for business focus now and into 2021, and finally trends in
site selection.
Webinar, March 17, 2021 Economic Development Director Costello attended a
webinar hosted by the League of MN Cities and Univ. of MN
Extension. The webinar discussed the “Next Normal” related
to economic recovery and resilience. The webinar also
discussed opportunities to strengthen economic recovery in
our communities. Attached are the PowerPoint slides from
the webinar.
Cottage Grove Convention
and Visitors Bureau, March
23, 2021
Meeting, March 24, 2021 Mayor Bailey, City Administrator Levitt, and Economic
Development Director Costello met with staff from Pizza
Ranch corporate offices. They were seeking a reductions in
fees and a lower percent Class I materials that are required
by code.
Meeting, March 24, 2021 City Administrator Levitt and Economic Development
Director Costello met with Schilling Trustees. They provided
an update on their conversations with Corp related to the
proposed dredging and Aggregate Industries EIS. Staff
provided an update on development in the City.
Board Meeting, March 25, Councilmember Dennis and Economic Development Director
2021 Costello attended the Cottage Grove Area Chamber of
Commerce monthly board meeting.
Meeting, April 1, 2021 Councilmember Thiede, Assistant to the City “Administrator
Wolf, and Economic Development Director Costello attended
a webinar hosted by Jodi Witte, a teacher at Park High
School. The webinar provided an update on the Inventor
Space happenings, plans, and future partner possibilities.
TO: Economic Development Authority
FROM: Christine Costello, Economic Development Director
DATE: April 7, 2021
RE: Development Update
Building Permits
Building Permit Statistics:
Between March 1 and March 31, 2021, 394 building permits were issued with a total valuation of
$17,446,087, including 41 single-family homes valued at $11,408,703 and 16 townhomes valued at
$3,708,577.
Commercial Permit Valuation Comparison
By Month
2020-2021
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
JanFebMarAprMayJunJulAugSepOctNovDec
2021 Valuation2020 Valuation
Economic Development Authority
Development Update
April 7, 2021
Page 2 of 6
Commercial/Industrial Construction Activity
120000000
100000000
80000000
60000000
40000000
20000000
0
yearvaluation
Residential Permits -New Construction
1996 to 2021
450
400
350
300
250
200
150
100
50
0
1995200020052010201520202025
Economic Development Authority
Development Update
April 7, 2021
Page 3 of 6
Current Project Updates
Building Construction Projects
Grove 80: The framing and insulation inspections for the fourth floor have been completed and
passed. The framing inspection for the third floor will be conducted the week of April 5.
Air Gas: Contractors are continuing work on the installation of the racking and piping.
Washington County Trail Head Building: Contractors have concentrated their work on interior
finishing for the project.
Grove Plaza: Work has begun on the exterior façade with the framing and insulation of the roof
inspected and approved this week.
Salon by JC: Interior demolition work has been completed. The building permit was issued with a
permit valuation of $660,000.
Capp Industries: Plans have been received and are currently under review for the 121,000 square
foot office/warehouse building to be located on West Point Douglas Road next to the school bus
garage.
Planning Division
March 22 Planning Commission Meeting
The Planning Commission met virtually on March 22, 2021, and reviewed the following applications:
Hadley-Scott Xcel Regulator CUP: Xcel Energy applied for a conditional use permit to allow for
the construction of an above-ground regulator station to be located at Hadley Avenue and Scott
Boulevard. The proposed location is within a
privately owned lot, which is currently encumbered
with a utility easement where existing utility
infrastructure exists. The request is spurred by
Project, which includes replacement of existing
pipe from the Langdon Village area to St. Paul
Park. As part of this upgrade project, Xcel has
indicated current safety standards require
regulator stations to be above ground. They have
also proposed to install fencing to provide
screening from the adjacent street.
Site Location
Economic Development Authority
Development Update
April 7, 2021
Page 4 of 6
Pipe Equipment Rendering No Fencing
Pipe Equipment Rendering Proposed Fencing
The Planning Commission, on a 6-to-0 vote, recommended approval. The application will be on the
April 21, 2021, City Council agenda.
10870 Ideal Avenue CUP: Sullivan Property Investments III, LLC applied for a conditional use permit
for an expansion of a legal non-conforming use at 10870 Ideal Avenue South to allow exterior storage,
delivery, return, and service of semi-trailers and ground level office and storage containers.
Citi-Cargo & Storage Co. Inc (CC&S) has a purchase agreement with the property owner to
purchase the property. CC&S is a locally owned and operated transportation and logistics company
and operates several facilities in the Twin Cities area, with their corporate office and and main
service yards located in Eagan. Per the submitted application, CC&S is proposing to utilize the
property as an overflow lot. Since their business is somewhat seasonal and cyclical, the property
would serve as a buffer as they move through their business cycles. CC&S anticipates up to 150
units being stored at the property during their peak storage season, which is typically from the
holidays to the start of construction season. During other times of the year, CC&S anticipates
around a third of that number (~50 units) being stored on the property.
It is important to note that the applicant is not statutorily entitled to expand the legal nonconforming
,
discretion in whether or not the request to expand the legal nonconforming use is approved, as
long as it is supported by findings of fact.
Staff does not believe that the requested use satisfies the criteria outlined in Title 11-2-9F(1) and
(2), specifically because the proposed use is inconsistent with the 2040 Comprehensive Plan and
Economic Development Authority
Development Update
April 7, 2021
Page 5 of 6
the Zoning ordinance. As noted above, the subject property and the surrounding property is guided
for Low Density Residential in the 2040 Comprehensive Plan, which was just adopted and ap-
proved in 2020. In addition, the current zoning designation for the property and surrounding
property is R-3, Single Family Residential. Therefore, the proposed use for the exterior storage of
semi-trailers and other trailers is inconsistent with both the Comprehensive Plan and zoning district.
In addition, the permanent CUP allowing the nonconforming use will impede orderly development
in the area. The guiding and zoning of this property is for residential development. To that end, the
City is in the process of securing the appropriate easements to bring public utilities to this area in
the very near future. Allowing the nonconforming use to expand for additional exterior storage
purposes will exacerbate the policy goals and land use designation in the Comprehensive Plan,
contradict the zoning district for the property, and legally allow a permanent obstacle to exist that
will thwart any future planned residential development for this area.
While it is true that the properties immediately adjacent to the subject property are also not being
used as guided or zoned, these adjacent properties are legal non-conformities whose uses must
cease if destroyed by fire and not rebuilt or if discontinued for a period of one year. They are not
protected by CUPs. By law, they are allowed to continue only as currently used, but there is a
statutory termination upon the occurrence of certain events. By legally authorizing a CUP on the
subject property for the expansion of nonconforming uses, the City is entitling the owner to use this
property in this manner as a legal use until such time as the CUP is revoked.
After lengthy discussion, the Commission voted unanimously (6-to-0 vote) to recommend DENIAL.
This application will be on the April 21, 2021, City Council agenda.
April 26, 2021, Planning Commission Meeting
The following applications have been received for the April 26, 2021, Planning Commission agenda:
Hinton Woods: D.R. Horton, Inc. Minnesota has applied for a
comprehensive plan amendment to change the guided land use
of approximately 40 acres of land located on the southwest corner
of Hinton Avenue and 65th Street from Medium Density
Residential and Mixed Use to Medium Density Residential; a
zoning amendment to rezone that property from R-2.5,
Residential, to R-5, Medium Density Residential, with a PUD,
Planning Unit Development. D.R. Horton also applied for a
preliminary plat for a residential subdivision to be called Hinton
Woods, which will consist of a total of 165 homes, which includes
104 attached townhome units, 61 single family homes, and 2
outlots that will be developed on approximately 40 acres of land.
Settlers Bluff: Capstone Homes, Inc. has applied for a zoning amendment to rezone 39.7 acres of
land located on the southwest corner of Hadley Avenue and 100th Street and north of 103rd Street
from AG-2, Agricultural, to R-5, Medium Density Residential, with a PUD, Planned Unit Development;
and a preliminary plat for a residential subdivision to be called Settlers Bluff, which will consist of 155
detached townhome lots and 5 outlots.
Economic Development Authority
Development Update
April 7, 2021
Page 6 of 6
North
South
Weber Property-Oppidan Cases ZA2021-027, PP2021-028, SP2021-029: Oppidan Development
has applied for a zoning amendment to rezone 8.45 acres of land located between Hardwood Avenue
and Harkness Avenue from UR, Urban Reserve, and R-2, Residential Estate District, to R-6, High
Density Residential, with a PUD, Planned Unit Development; and a preliminary plat to be called Hard-
wood Subdivision that would create one lot. Oppidan also applied for site plan review of a market rate
171-unit, four story multi-family apartment building.
Summary of Economic Activity
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Employment and Wages
Worker Experience
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Prices
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Manufacturing
Consumer Spending
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Agriculture, Energy, and Natural Resources
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Construction and Real Estate
Minority- and Women-Owned Business Enterprises
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