Local economic growth tempered with challenges. This, in a phrase, sums up the EDA meeting update for February.

Meeting Tuesday, February 8 at 7:30 a.m., the Cottage Grove Economic Development Authority (EDA) covered several agenda items, including the Biege Book (a regular update from the Federal Reserve), business inquiries, letter of intent for a new dining option on East Point Douglas Road, and three public hearings.

With EDA President Myron Bailey answering to roll call along with EDA vice president Steve Dennis and EDA members Dan Myers, Joseph Krohn, and Kyle Knop (two other members being absent), the EDA got down to business with approval of the minutes from January 11.

“Mayor, I’ll make that motion to approve the minutes from January 11,” EDA vice president Dennis said upon Bailey asking for a motion, with second coming from EDA member Krohn.

Moving next into business items as agenda item 4, the EDA heard an update from Cottage Grove city administrator Jennifer Levitt.

“Thank you Mayor, members of the EDA,” Levitt began from the comment podium. “It’s exciting as we continue to talk about economic growth that’s happening in our region.” Shifting to the Biege Book summary, Levitt shared the following:

• Moderate growth to employment but with a tighter labor supply stalling stronger growth

• Persistence in strong wage pressures with strong wage growth in construction, manufacturing, and hospitality- tourism

• A tight labor supply with rates of quitting continuing to trend up

• Continued price pressures remaining elevated from already high levels

• Moderate growth in consumer spending

• Moderate growth in commercial and residential construction • Retail vacancy rates inching higher with modest growth in commercial real estate but slower residential real estate sales persisting alongside this, attributed to low inventory.

• Office vacancy rates that remained high, while multi-family residential rates remained low.

• A brisk increase in manufacturing activity

• Steady agricultural conditions “A couple things to bring to your attention,” Levitt, went on, sharing that the Cottage Grove Convention and Visitor’s Bureau had launched their very first official visitor’s guide.

Not shared by Levitt but debuting on the Facebook account for “Discover Cottage Grove” is that the second annual medallion hunt in the City is due to kick off March 7, while two years of cancellation with regards to Strawberry Fest are ostensibly over, the yearly festival due to be held again this summer from June 16th through the 19th.

Continuing on with her update to the EDA, city administrator Levitt shared that Caribou Coffee had opened on February 3 at 80th Street and Hinton Avenue, with a fundraiser for the local food shelf included.

“And also this weekend they did a fundraiser to Friends in Need Food Shelf, donating a dollar of each purchase to the food shelf. So it was a great way for Caribou to give back to our community as well,” Levitt said.

Shifting next to North Star Sheets, Levitt shared that the business on 91st Street South had completed the exterior for its addition project, with plumbing starting in underground and concrete floor plus other trade work coming.

As to American Logistics Services (AGCO), Levitt shared that the company was expanding into a newly completed Capp Industries building at 7900 West Point Douglas Road, with plans for a 63,260 square foot tenant improvement project both reviewed and approved.

For the Fast and Fresh Hy-Vee Convenience Store, Levitt reported that the remodel project had started, said project including the addition of cooking equipment to provide hot and fresh grab n’ go products.

Shifting next to the Oakwood Park Shelter, Levitt reported that the footings and foundation were complete along with bathroom walls and beams, the shelter awaiting completion of roof truss work.

As to Grey Cloud Island and a 2022 mining permit from Aggregate Industries, Levitt reported that the Planning Commission had approved the application on a 5 – 0 vote.

But whereas Aggregate Industries leases the land it mines on Grey Cloud Island, Mayor Myron Bailey shared at the December 1 City Council meeting that a ‘significant landowner’ was looking to move to development on the glacial sand deposit turned settlement area for various historical tenants.

“We know there is a significant landowner on the island that wants to move to development,” Bailey said of the island that includes a several historic and cultural features, including a city plat for Grey Cloud City, several Indian burial mounds, and the Schilling Archaeological District located at its southern tip. A future concept map prepared back 2000 includes interpretative sites for these features, while a future land use map used by Aggregate Industries since 2017 is less clear on the matter. Shifting back to the February 8 EDA meeting, meanwhile, Levitt had more to report to EDA members.

“Also the City Council on March 2 will be looking at backwater mining,” the city administrator went on regarding another mining permit for a site off the southern shore of Grey Cloud. But southwest Cottage Grove wasn’t the only area up for review at the February 8 EDA meeting.

“Flint Hills Fire Suppression building,” Levitt stated next, saying that an application had been made for a site plan review on a new 210 square foot tank foam building at the site of the Koch Pipeline Company, located at 6483 85th Street South. The Plan Commission had approved the application as stated with a 5 – 0 vote, Levitt said.

Last but not least for the update from Levitt was a conditional use permit for a 10-foot tall privacy fence from Van Meter, located at the former site of Werner Electric at 7450 95th Street South. The Plan Commission had likewise approved the conditional use permit application with a 5 – 0 vote, Levitt shared with EDA members.

“Obviously they’ve had a lot of supply challenges and delays, so this fencing will help really keep that area contained and secure as they navigate this challenging time before they can look at expanding their building,” Levitt said.

As to dining options for residents, Levitt shared that a new restaurant was potentially in store.

“We did receive a letter of intent from Hang LLC on the fourth of February,” Levitt said of a vacant property at 7470 East Point Douglas Road. The parcel zoned B2 Retail Zoning and bordered on the north by R3 low density residential, includes a purchase price of $188,179 on the part of Hang LLC or eight dollars per square foot.

Once the site of a transmission shop, 7470 East Point Douglas Road was purchased by the EDA which did site remediation and cleanup for the site, with Hang LLC interested in putting a restaurant to be called the Thai Garden on site.

“Our intent was to generate retail services and restaurant opportunity on this parcel and so that does align with that objective fo the EDA. The future- planned Thai Garden at the site is described as being a small, family owned business of 3,050 square feet with indoor seating for 100 people and outdoor seating for 40 people. With redevelopment of the site a challenge, Levitt said the city was anticipating the need for a parking or setback variance.

With motion by EDA member Myers seconded by vice president Dennis, the letter of intent was approved.

Approved at the January Plan Commission meeting was a mining permit renewal for Aggregate Industries operating out on Grey Cloud Island, with with possible backwater mining on the island’s south side also coming up for review soon. Image from Plan Commission packet.