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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 -- Employment and Wages Worker Experience - - - - - Prices I-1 - Manufacturing Consumer Spending - Agriculture, Energy, and Natural Resources - - - Construction and Real Estate Minority- and Women-Owned Business Enterprises -- - I-2