The Cottage Grove Economic Development Authority met Tuesday, April 14 at 7:30 a.m. in the St. Croix Room at city hall.
Among the items of discussion were overall economic conditions, school and apartment projects, the city’s façade improvement program, and water tower progress south of 61.
The meeting opened with a community development update from Cottage Grove Economic Development Manager Nate Carlson, who began with a summary of the Federal Reserve’s Beige Book — a widely used snapshot of economic conditions across regions.
Carlson told EDA members that the most recent Beige Book report, released in February, showed concerning trends for the Minneapolis-St. Paul region and broader metro economy.
“In short, economic activity is not positive,” Carlson said for Q1 of 2026 in the Twin Cities, noting that prices were increasing and employment levels declining. while labor demand remained unchanged. The report for the start of 2026 followed weak performance at the end of 2025. Carlson added that the first quarter outlook for the region has not shown significant improvement, reinforcing concerns about slowing growth.
Carlson pointed to continued development activity within Cottage Grove as a sign of local resilience, providing updates on several ongoing and upcoming projects, including school improvements, residential construction and commercial development.
As for school projects, Carlson shared that work continues on a new north entry at Park High School, while construction at Oltman Middle School off 65th Avenue includes interior and exterior upgrades such as door frames, ceiling grids and brickwork.
As for residential and commerical construction projects, Carlson shared that the Hadley Ridge Apartments off 100th Street South are progressing with foundation work underway, while the Roer’s apartments north of Highway 61 near 80th Street currently have a large retaining wall coming into view.
"They will be known as Ellwyn," he said.
Carlson also highlighted continued progress on the city’s water infrastructure meanwhile, including the city’s first concrete water tower near the business park and intermediate treatment plant off 80th Street, where construction is ongoing.
Looking ahead meanwhile, several commercial projects are in the pipeline. Kwik Trip has applied for building permits and is expected to break ground this summer at 5810 95th Street, while Panera Bread has acquired the former Speedway site at 7162 East Point Douglas Road and is working toward a potential opening later this year.
Additional development projects in Cottage Grove include the Yellow Tree apartment project and an expansion by local business Van Meter Inc., expected to break ground later this month at 7450 95th Street.
Following the development update, Carlson provided EDA Commissioners with an overview of the city’s façade improvement program, asking if the EDA wanted to make changes.
"We’re at a point where I’m trying to gauge interest in the program,” he said.
The program launched in 2019 to encourage exterior upgrades to commercial properties has supported 12 projects while distributing approximately $284,000 in grants, leveraging nearly $600,000 in total private investment through its 50 percent matching structure. At the same time features like the priority map focusing on properties on Highway 61 and near Keats and 70th had affected applications from businesses.
As such, Carlson recommended two key changes to the program guidelines.
The first and most significant change was the removal of the program’s “priority map,” which had previously designated certain areas of the city as higher priority for funding.
“It feels right now that it’s first come, first serve,” he said. The EDA had approved a project at the Madison by starting that it met their requirements of the program, but the priority map had acted to discouragement applications outside the priority areas.
“What I’m noticing is it’s becoming more of a barrier than maybe what was initially thought,” Carlson said, noting that some businesses outside the designated zones have been hesitant to apply.
EDA members discussed the issue at length, weighing the original intent of the map against its current impact.
EDA member Tony Khambata noted that the map was initially created to manage demand during the program’s early stages but said its removal now makes sense given the relatively low number of applications over time.
“With 12 projects over seven years, that’s a manageable number,” Khambata said. The program had enough money for two projects a year, with some years lacking applications.
Other members raised questions about how projects would be prioritized without the map, particularly if demand increases. EDA President Myron Bailey said the board would retain discretion to evaluate projects based on visibility, impact and overall benefit to the community.
“We would make the call with staff’s help, to determine which would be the best projects,” he said.
The second recommended change by Carlson clarified the program’s maximum award amount at $24,999 — just below the $25,000 threshold that would trigger additional state regulatory requirements.
Following discussion, a motion was made by Khambata and seconded by Commissioner Thomas Tschida, to approve the updated program guidelines, passing unanimously.
Also from Tuesday, meanwhile, EDA commissioners approved a contract for the demolition and cleanup of a residential property at 9430 East Point Douglas Road, southeast of Walmart.
City Administrator Jennifer Levitt explained that the property, known as the Ross property, was acquired by the city and requires asbestos abatement prior to demolition. The project will include removal of structures, septic system abandonment, site grading and seeding, with the city maintaining the property afterward.
Following discussion the EDA approved two resolutions related to the project, one awarding the project to NML Contracting LLC for $52,800 and another authorizing execution of the service agreement.
Later in the meeting, the EDA held a public hearing and approved a resolution related to the purchase and resale of approximately 13 acres of land tied to a planned expansion by Tradehome Shoes.
Under the agreement, the EDA will acquire the property and then sell it to the company, generating more than $627,000 for the EDA trust fund.
EDA members expressed enthusiasm about supporting a long-standing local business.
“This is a business that has been in our community for north of 20 years,” Khambata said. “I’m really excited to see them going through this expansion process.”
Closing things out April 14, the meeting concluded with a brief preview of upcoming workshop topics, including updates on Innovation Village, the 100th Street extension and a business retention and expansion program.
Innovation Village is an ongoing development project tied to broader economic growth and planning efforts, while the 100th Street extension seeks to extend access to the business park from the Highway 61/Keats Avenue interchange. The Business Retention and Expansion (BRE) program is a strategic effort to engage with existing local businesses, with EDA members planning to discuss how to participate in outreach and better understand business needs to support long-term economic stability and growth.
Cottage Grove EDA meetings are held on the second Tuesday of every month at 7:30 a.m. in. city hall. The public is invited to attend.