HomeMy WebLinkAbout4.4a 80th Street Redevelopment Property Appraisals
TO: Economic Development Authority
FROM: Gretchen Larson, Economic Development Director
DATE: November 4, 2022
RE: 80th Street Redevelopment Property Appraisal
Introduction
The Cottage Grove Economic Development Authority (EDA) currently purchases property to
facilitate development in the Cottage Grove Business Park such as the Renewal by Andersen
expansion and the Hemingway Industrial 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
7155 80th Street South and 7130 East Point Douglas Road
The properties located at 7155 80th Street South (2.0 acres) and 7130 East Point Douglas Road
South (1.2 acres) are both areas the City is focusing on for redevelopment.
The 7155 80th Street South property, is owned by Lannco LLC, and is called 80th Street Village
Green. It is a multi-tenant retail building and appears to have some vacancy in the building. It has
been listed for sale multiple times within the past few years. While there is not currently a broker
sign on the site, the city has been in communication with the broker for the building and there is
interest in selling.
Manufacturing Solutions, Inc (MSMNI) is a single-tenant office/warehouse building. It is located
at 7130 East Point Douglas Road and the business is looking to expand its footprint and move to
a larger location. They have been in communication with some of our business park developers
to move the business to the Cottage Grove business park area.
To facilitate this area for development it is in the City’s best interest if the EDA explores purchasing
these properties for future redevelopment that is in line with the Comprehensive Plan. The owners
of both sites are aware that the city is looking at these sites for redevelopment.
Application has also been made to the Washington County CDA Brownfield Assessment Program
to cover the cost of a Phase I environmental review of the two sites. Two separate applications
for the program have been submitted, one for each site, and they are currently under review for
eligibility determination.
Economic Development Authority
Page 2 of 3
Properties outlined in yellow are the two proposed properties.
Appraisal Quotes
Although 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.
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 of the properties
have been obtained. BRKW Real Estate Valuation Services and Patchin Messner Valuation
Counselors submitted proposals.
The quote from BRKW Real Estate Valuation Services included a total cost of $8,200 for the
appraisals of the two properties. The quote from Patchin Messner Valuation Counselors
included a total cost of $11,000 for appraisals of the two properties. The recommendation is that
the EDA move forward with BRKW Real Estate Valuation Services proposal for a total cost of
$8,200. The property owners have both given their permission for the appraisals to be
completed.
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 community. The EDA can
then use 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.
Economic Development Authority
Page 3 of 3
Recommendation
Authorize the appraisal of 7155 80th Street South and 7130 East Point Douglas Road for the total
cost of $8,200.
Attachments
Appraisal Proposal – BRKW Appraisals
Appraisal Proposal – Patchin Messner Valuation Counselors