HomeMy WebLinkAbout4.3c CDA Predevelopment Finance Fund Application
General Information
Date: __December 13, 2022_____________________________________________________________
Project Name: 100th Street Extension Regional Utility Study
Applicant City/Township: Cottage Grove
Applicant Address: 12800 Ravine Parkway S, Cottage Grove, MN 55016
Application/Project Contact: Ryan Burfeind
Contact Email Address: rburfeind@cottagegrovemn.gov
Contact Phone Number: 651-458-2899
Authorized Official(s) for Execution of Contracts (name and title): Myron Bailey/Mayor
How much grant funding are you requesting? $40,000
Is the applicant an eligible public entity as defined in the program policy and guidelines? Yes X No __
I. PREDEVELOPMENT FINANCE FUND PROPOSED PROJECT DESCRIPTION
1. Describe the city’s/township’s goals, objectives and need for the Predevelopment Finance Fund grant
and anticipated future commercial and industrial opportunities and other proposed components. Please
explain the public benefit of the proposed plan, report, or study. Attach copy of proposed contract for
services or scope of work for any activities to be funded by CDA grant funds.
The area included in this utility study is currently under 3M ownership, however the City is working
with them on development opportunities, either by 3M or through future sale of the land. Currently 3M
operates their own water and sewer system for their Cottage Grove plant, however that would not be
expanded to serve the study area. While the City has the overall system capacity to serve the area, the
specific details of servicing the area have not been completed previously, due to the 3M ownership
status. With development potential in the area, completing a water & sewer study for servicing is
critical. Also, developing an area-wide stormwater management plan with specific site requirements
will be completed. Considering the future realignment of County 19A & 100th Street, in partnership
between the City and County, local roadway networks and connections will be reviewed as well.
Finally, while the majority of the land is guided industrial, a commercial area is anticipated at the
interchange of Innovation Road and Highway 61. This study will look more closely at options for this
commercial node. A copy of the Bolton & Menk proposal is attached.
2. Has a developer or end user been identified or committed to the proposed site?
Not directly, however, the city is planning on submitting a proposal to 3M for consideration to locate
their new medical company spin-off at this property (see attached map). We estimate that if we were to
be the chosen site, the capital improvements to the property would be more than $350M with creation of
1,500 jobs. Regardless of whether we’re chosen we will continue to submit the property for other
projects. Interest by companies seeking to locate in our city business park continues to grow as space for
large developments become scare in the city so we are pro-actively working with 3M as we want to be
ready for the opportunities that will come. Applying for the CDA predevelopment grants funds is a part
of the process.
3. Provide a brief history of the site including any previous uses, activities, prior or existing
contamination, and other previous attempts at selling, developing, or redeveloping the site. (please
identify any obstacles that may be preventing the city/township from accomplishing its goals for the site
or area)?
The land included in the study is currently vacant, and under 3M ownership. With the pending
decommissioning of the incinerator, this has created the potential for development of this land. The land
has historically been leased for agricultural uses by 3M however, the city team has had many
discussions related to assisting them with a plan that would increase opportunities to develop the land or
make it more attract to investors for commercial uses.
4. Describe any studies or development activities at the proposed site or project area that have already
been completed or are currently underway (if applicable).
The Cottage Grove 2040 Comprehensive Plan guides this area of the City as industrial land use. From a
transportation perspective, the County’s Southwest Arterial Study has laid the groundwork for providing
connectivity to Highway 61, through a realignment of County 19A and extension of 100th Street. With
the new opportunity for growth in this area, this utility study is a key step providing the necessary
information for potential developers.
5. Proposed Budget. Itemize all funding sources that have been or will be used to complete the proposed
project goals and activities.
Source of Funds Amount Committed Pending
Washington County CDA Funds $40,000 X
City or Township Local Matching Funds $45,000
Total: $85,000
Itemize expenses for the completion of the proposed project goals or proposed activities.
Itemized Use of Funds/Expenses Costs Funding
Source
Regional Utility Study – Bolton & Menk Proposal $85,000 CDA & City
Total: $85,000
II. DETAILED PROJECT AND ACTIVITY DESCRIPTION
1. Please provide location maps, photos, current and projected site plans (if available). (maps
should include site or project area location, property boundaries, north arrow, and bar scale, etc.)
See Attachment.
2. Describe all of the proposed activities (i.e., studies) that are part of this grant funding request.
The primary activity related to this grant request is the completion of a water & sewer
serviceability study for the potential development area. As an area largely guided industrial,
specific water and sewer service capacities are necessary. Most industrial users have specific
needs related to water and sewer usage and being able to provide this information up front is a
necessary first step in the development process.
3. Is demolition of blighted buildings or other structures part of the proposed project?
There would be no demolition of buildings or structures needed for development of the proposed
properties.
4. What is the proposed future end use of the project site or area?
The Cottage Grove 2040 Comprehensive Plan guides the proposed properties as industrial. With
realignment 100th Street, the City believes there is potential for an approximately 17-acre node of
commercial development to take place near the Innovation Road & Highway 61 interchange.
5. Describe the site or project area (including): (please attach current property tax statement(s):
Acreage of overall site: 320 acres Number of parcels: 3
Owner Support Letter Attached
Parcel Identification/Description Number or Address Yes No
22.027.21.33.0001 X
27.027.21.21.0001 X
27.027.21.13.0002 X
Please identify all property owners and include a letter of support from each owner: 3M
ownership - letters of support attached.
Is the property currently listed or available for sale? No
After development or redevelopment is complete, what portion of the project site be publicly and
privately owned? Public: 16 acres (public right-of-way) Private: 304 acres
6. Identify any other partners and their roles such as landowners, realtors, developers, consultants,
and regulating/permitting agencies, etc. (if applicable):
3M Company, Metropolitan Council, MN Pollution Control Agency, and the MN Department of
Health.
7. How will the proposed project and/or activities promote or increase future commercial/industrial
market values in the city/township/county (please identify your goals for increased commercial
and industrial property tax base as a result of the proposed activities and describe how you will
measure success)?
The land is currently vacant however, since 3M no longer needs the buffer that was required by
their incinerator, having an overall plan to address the property shows developers that the city is
forward thinking and is taking an active interest in developing it in partnership/concurrence of
the property owner. Ultimately, whatever ends up being built on the property will bring in jobs
and good wages since it is intended primarily for industrial use, though higher end retail and
services will also be a part of the development closest to Highway 61. The land is currently taxed
agricultural and to change the tax status to commercial will increase the tax base significantly for
the city and county. The city will work with representatives from 3M to market the property and
assist with many of the due diligence tasks needed for development to occur. If the grant is
approved we will be able to show interested developers how the land can be used and where
elements of their proposed development would be placed on the property.
8. How will the proposed project and/or activities promote or increase future employment
opportunities in the city/township/county (please identify your job and wage goals as a result of
the proposed activities and describe how you will measure success)?
The proposed plan will increase employment opportunities in the city by providing more chances
to work in the community and not have residents commute outside the city for employment. The
wages goals that are proposed for the development will pay a living wage and increase our tax
base, which is how the project’s success would be measured.
9. Please provide detailed project timeline with all actions, phases, and anticipated dates for
completion (when will the activities/studies be complete)?
If grant funding is received, work on the utility study will commence immediately. It is
anticipated that the study will take 16 weeks to complete.
10. Describe why the development or redevelopment study, report or plan is needed and why the
property is not likely to develop through the normal private sector process?
With this land under 3M ownership, potential for development and the need for utilities to serve
the area was not previously contemplated, as they have historically provided their own water and
sewer services. Decommissioning of the incinerator has opened up opportunities to develop this
land. Given the industrial land use, accurate and detailed serviceability information is necessary
to inform potential developers. Having this information readily available will position the land
well and accelerate the overall process. It is assumed the development process will follow a
typical private sector process.
11. Describe the level of commitment by the city/township to the development of the property or
area (please identify how the proposed activities meet the city/township priorities, land use
planning, economic development goals, etc.…)? Why is this important to the city/township?
Please attach a resolution requesting grant funding from the Predevelopment Finance Fund
adopted by the city/township.
The City is fully committed to supporting the ongoing growth in this area of the community.
The ongoing collaboration with the County on the Southwest Arterial Study and the County
19A/100th Street Realignment Project demonstrates this. While this arterial roadway will serve
all of southern Cottage Grove, it will be a key for development of the properties tied to this grant
request. The potential uses are in line with the City’s Comprehensive Plan as well. The City is
committed to providing the necessary utilities to service future development in this area, which
this grant funding will support.
12. Please submit this application and all necessary attachments electronically (.pdf file preferred) to
Economic Development Director, Washington County CDA at:
ChrisE@washingtoncountycda.org