HomeMy WebLinkAbout4.a. Project & Economic Development Coordinator Update
EXECUTIVE SUMMARY
Port Authority Meeting Date: January 21, 2020
AGENDA ITEM: Project & Economic Development
Coordinator Update
AGENDA SECTION:
Old Business
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 4.a.
ATTACHMENTS: Retail Strategies Update, ED Contact
List, Retail Predictions 2020 article APPROVED BY: LJM
RECOMMENDED ACTION: Information Item
ISSUE
Previous discussions with the Council and Port Authority indicated a desire for more information
regarding completion of workplan activities. The following highlights some of the project and economic
development activities since the last Port Authority meeting. Companies marked with an asterisk are from
staff’s cold call list.
Commercial Contacts:
Kwik Trip: Staff continues to work with Kwik Trip after they indicated interest in the location at Akron
Avenue.
Carousel Way: Davis is hoping to have a lease signed by the future user in January, which would allow for
a February planning application submittal, The Davis company was also looking for an existing 10,000
square foot space to rent in Rosemount. They were unable to find suitable space so they will start to search
for an acre property for a second medical tenant.
Multi-tenant Retail: Noodles has picked up their permit and should be starting construction shortly.
Israelson property: The Mayor and staff met with a restaurant/retail group who might be interested in
one of the Israelson sites. Staff has forwarded him all requested information. Warren has also indicated
there is some interest in a memory care building on his site.
Merchants Bank site: Staff has been notified by the potential buyer that the deal has fallen through. Staff
has suggested other locations in the City.
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Akron Ave: The Council hired Westwood to put together a site plan for the eastern parcel, including the
City Recreation Center. Per the Parks and Recreation Director, they continue to work on the layout.
MGM retail space: Spoke to the leasing agent this week. She continues to talk to a few different users.
One wants a portion of the space and another would want the entire site; if either decide to move forward.
CDA vacant property off Akron Avenue: The CDA is listing the site with CBRE. The site is zoned for
high density residential. Companies contacted include Dominium, Aeon, Common Bond, and Schafer
Richardson.
*Schafer Richardson: Staff met with Schafer Richardson regarding potential Rosemount developments.
They specialize in mixed use, affordable housing and redevelopment projects. They were made aware of
the CDA property in addition to the Morrison Redevelopment.
Midwest Fastener Supply: A company that manufactures fasteners (screws, bolts) via 3D printing is
searching for an acre parcel for a new building. They are based in Eagan, but are looking to expand in a
new facility. They were asking about the city owned property in the business park. This should be a further
discussion topic for the Port at an upcoming meeting.
*Hillcrest Development: Staff reached out to Hillcrest – an industrial and retail developer in the Twin
Cities. They are currently not looking for new development opportunities and are focusing on renovating
their existing building in the first half of 2020.
*Hyde Development: Staff spoke with Paul Hyde regarding industrial redevelopment. Hyde
Development has increased their spec industrial development due to strong growth in the Twin Cities
market, particularly among 3rd party logistics companies. Staff provided available sites in the business park
and highlighted the recently certified Xcel and DEED Shovel Ready sites.
*Camp Bow Wow: Staff spoke with Diana Hall the Burnsville/Eden Prairie Camp Bow Wow franchisee.
She is not looking to expand beyond two locations currently; however, she put staff in contact with the
corporate office for other potential franchisees in Dakota County.
*Fleet Farm: Staff reached out to Fleet Farm regarding a Rosemount location. They remain interested in
Rosemount but are not actively searching for a site in 2020.
Beirut Restaurant: Staff spoke with John Khoury regarding a Rosemount establishment with an end of
2020 timeframe. Staff is meeting with Mr. Khoury in January.
*TPI: Staff spoke with Chris Flagg from TPI Hospitality regarding a hotel development. They are not
currently looking for new opportunities in Dakota County as they believe the recent development in Eagan
and the Mall of America has disrupted the submarket. They do believe Rosemount has attractive sites for
development once the new supply gets absorbed into the market.
*JLL: Staff was approached by JLL looking for a 70-acre site within an hour of Minneapolis. Information
relating to sites that fit the parameters was provided.
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*Lund Food Holdings: Staff contacted a representative with Lund’s parent company specifically on a
new location on Akron. There is potential interest, especially if more residential and the rec center are
developed.
*Kowalski’s: Staff contacted Robert Kowalski (real estate lead for Kowalski Markets) regarding a market
site near Akon Ave. As with several of the other grocers/supermarkets there is interest; however, there are
concerns about the number of adjacent residential developments and distance from new market
developments in Lakeville/Apple Valley.
INDUSTRIAL
UMore Industrial site: Continuing to pull together information in response to the recent meeting
Biscayne Business Park/ Cerron Commercial Properties: nothing new due to wintertime.
Rosemount Business Park: No new information currently.
Marketing:
Staff has compiled a list of companies and developers to contact in 2020. It is a mix of large retailers,
higher end chain restaurants, and developers (housing, mixed use, medical, industrial, and commercial).
This list does not include individuals looking to start a new business or with businesses a single location
(such as breweries). Please contact staff with any additions or recommendations to this list. Staff will
update the Port Authority on the status of cold calls that result in a conversation or meeting with a
company representative. The initial list has 123 companies of which 23 have been contacted resulting in 10
conversations.
Workforce:
DCTC: Staff is working with DCTC on holding an April 2020 Community Forum on Employer-Educator
Partnerships. This forum will include Rosemount businesses that have established training programs as
well as businesses looking to create their own pipelines. The next planning meeting is scheduled for
February 2020.
Events:
2020 Regional Economic Conditions: Staff attended the Federal Reserve Bank of Minneapolis’s 2020
Regional Conference. The conference touched upon sector trends within the Midwest. Sector spotlights
included, agriculture, healthcare, mining, and manufacturing. Healthcare is expected to be strong in 2020
and manufacturing will continue to grow at a slower pace. Workforce shortages are a persistent issue
throughout the upper Midwest and hampers faster growth.
Dakota County Regional Chamber Annual Meeting: Staff attended the Dakota County Regional
Chamber. The event highlighted successes in 2019 and provided a look forward to 2020 for Dakota
County businesses.
We make retail happen.
RETAIL RECRUITMENT UPDATES
•UPS Store –Our team reached out to see if they would consider another location so
close to their Apple Valley location. The real estate director let us know that he
needed to check on the sales numbers for that store and he would get back to us. At
first glance he thought it was too close; however, he said it could be considered if the
numbers were really good.
•Schlotzsky’s –We reached out see if they would consider the market. The closest
location is in Edina. We are awaiting a response at this time and will continue to
follow up.
•Cushman Wakefield –Ben Drew –We reached out to Ben to get the latest update on
the 19 acres on Akron and 145th. He let us know he doesn’t handle this property
anymore. However he did speak to the lack of residential to support any major retail
at this time and said the owner doesn’t plan to do any development anytime soon.
•KW Commercial –Ben Little –Our team reached out to check the status of the
Anytime Fitness property. We are waiting to hear back at this time.
•Autozone –We reached out to the broker for them again to see if they were ready to
proceed. He let us know that until there is more action at Rosewood Center that they
planned to hold off. Once other things begin to happen at this development, they
would consider a location here.
•Panera Bread –We contacted this group and they told us that at this time this is too
close to their Apple Valley location. They told us to stay in touch should this change
in the future.
ROSEMOUNT, MINNESOTA
BETH MILLER
PORTFOLIO DIRECTOR
205.314.0385
beth@retailstrategies.com
*Confidential*
December 2019
Company Industry
Kraus Anderson Healthcare/Industrial
Davis Healthcare
Scannell Industrial
Meritex Industrial
Opus Industrial
Ryan Companies Healthcare/Industrial
Duke Realty Industrial
Oppidan Industrial
Hyde Development Industrial
CSM Industrial
Interstate Development Industrial
United Industrial
Appro Development Industrial
Frauenshuh Inc Healthcare/Office
Trammell Crow Co.Healthcare/Industrial
Hillcrest Development Industrial
Java Capital Partners Commercial
Copper Creek Commerical/Retail
IRET Multifamily
McGough Office/Industiral
Hoyt Properties Inc.Industrial
Crawford Merz Industrial
ARTIS Real Estate Investment Trust
Lee & Associates Real Estate Investment Trust
Transwestern Real Estate Investment Trust
CRBE Real Estate Investment Trust
JR Hospitality Hotel
TPI Hospitality Hotel
MaaDaaDizi Hotel/Retail
JLL Commerical
Hy-Vee Grocery
Kwik Trip Gas Station
Casey's Gas Station
Lunds Grocery
Fresh Thyme Grocery
Trader Joe's Grocery
Kowalski's Grocery
Midwest One Financial
Sunrise Banks Financial
Premier Banks Financial
Bell Bank Financial
Heartland Credit Union Financial
Copper Creek Retail/Curling
Sprouts Grocery
Total Wine Liquor
HomeGoods Home Improvement
UltaBeauty Retail
Sierra Retail/Clothing
The Tile Shop Home Improvement
Erik's Bike Retail
Menards Home Improvement
Choice Bank Financial
Apogee Enterprises Manufacturing
Tennant Co.Manufacturing
Cardinal Glass Industries Manufacturing
Speedway Gas Station
Dicks sporting goods
Sheels sporting goods
Play it Again Sports sporting goods
Petco Retail
PetSmart Retail
camp bow wow Service
Wells Fargo financial
Common Bond Affordable Housing
Dominium Affordable Housing
Senior Housing Partners Senior Housing/Retail
Solhem Cos.Multifamily
Lupe Development Multifamily
Excelsior Group Multifamily
Water Senior Living and Shelter Corp Senior Housing/Multifamily
Schafer Richardson Multifamily/Mixed-Use
True Food Kichen Fast Casual
Tropical Smoothie Café Fast Casual
Five Guys Fast Casual
Blaze Pizza Sit Down
Buffalo Wild Wings Sit Down
Yard House Sit Down
Texas Roadhouse Sit Down
Chilli's Sit Down
Old Country Buffet Sit Down
Pot Bellies Fast Casual
Red Savoy Sit Down
Cannon River Winery Brewery/Winery
Saint Croix Vineyards Brewery/Winery
Alex Bailly Vineyard Brewery/Winery
Falconer Vineyards Brewery/Winery
Punch Bowl Socail Sit Down
Panera Bread Sit Down
Brueggers Fast Casual
Roit Sit Down
The Tavern Grill Sit Down
Bonefire Wood Fire Sit Down
Wild Boar Sit Down
Green Mill Sit Down
Brick and Bourbon Sit Down
Buca di Beppo Sit Down
P.F Changs Sit Down
Café Zupas Sit Down
Redstone American Grill Sit Down
Rusty Taco Sit Down
Cowboy Jacks Bar/Grill
Davanni's Pizza Sit Down
Muddy Cow Sit Down
Porterhouse Steak Sit Down
Old Chicago Sit Down
Leeann Chin Fast Casual
Smash Burger Fast Casual
Bakers Square Sit Down
Cheesecake Factory Sit Down
Fairview Provider
Alina Provider
HealthPartners Provider
Mayo Provider
Lifetime Gym/Wellness
Kraus Anderson Developer
Davis Developer
Frauenshuh Inc Developer
Trammell Crow Co.Developer
Core Power Gym/Wellness
LA Fitness Gym/Wellness
Snap Fitness Gym/Wellness
Orange Theory Gym/Wellness
Presbyterian Homes and Services Provider
1/15/2020 Six Predictions for Retail Real Estate in 2020
https://www.nreionline.com/retail/six-predictions-retail-sector-2020 1/4
It was a brutal year for the U.S. retail sector, despite a robust economy and healthy
consumer spending. Massive store closures, retailers’ right-sizing, changing
consumer behaviors, new delivery models and the upheaval of e-commerce
competition impacted the sector
Six Predictions for the Retail Sector in 2020
Retail real estate had just had one of its toughest years ever. Will there be
relief in sight in 2020?
Liz Wolf | Jan 08, 2020
1/15/2020 Six Predictions for Retail Real Estate in 2020
https://www.nreionline.com/retail/six-predictions-retail-sector-2020 2/4
competition impacted the sector.
However, there’s also opportunity. Traditional retailers are rethinking their
physical location strategies and beefing up their online presence, while clicks-to-
brick retailers are expanding their physical footprints.
“Retail has never been more interesting than it is right now and it’s never been
harder,” says Deb Carlson, a director in the Twin Cities office of real
estate services firm Cushman & Wakefield. “The roles are out the window.
Everyone is sitting back and saying, ‘How do I tweak what I’m doing?’”
NREI asked retail real estate experts what might await the industry in 2020. Here
are their top predictions.
1. Retail closures/bankruptcies will continue to be a burden for landlords. At least
one major department store will file bankruptcy, likely J.C. Penney,
according to Nick Egelanian, founder/president of SiteWorks Retail Real
Estate Services.
“J.C. Penney has had the worst sales trend, and despite testing a new prototype in
Dallas, I think they are just too far gone,” he notes.
Meanwhile, Macy’s could announce the closure of up to 250
underperforming stores, in Egelanian’s view, and additional bankruptcies will
be concentrated among mall-dependent brands.
In addition, at least one major mall REIT bankruptcy might take place in
2020, likely CBL & Associates, Egelanian says. CBL, whose stock has been beaten
down already to about $1 per share, has no real strategy for replacement of
department stores and other mall staples and is heavily exposed to industry
headwinds, Egelanian notes.
2. There will likely be more restaurant bankruptcies this year,
says Lauren Leach director of real estate advisory services at consulting
1/15/2020 Six Predictions for Retail Real Estate in 2020
https://www.nreionline.com/retail/six-predictions-retail-sector-2020 3/4
says Lauren Leach, director of real estate advisory services at consulting
and advisory firm Conway MacKenzie.
“This goes for both quick-serve restaurants and full-service dining,” Leach
notes. “The sector is oversaturated, pressure to remodel exists, and
consumers are turning towards local and healthier options. Much like
retailers, many restaurants are faced with massive debt and need to raise menu
prices to keep afloat.”
Furthermore, restaurant chains that haven’t kept up with recent popular delivery
options have been cast aside, Leach says. There also will be a bigger push to
incorporate mobile ordering, which means adjusting physical restaurant layouts to
accommodate for customers picking up food, she adds.
3. Digital/physical retail will continue merging in innovative ways. The “magic
retailer” is the one that can do both well, Carlson says. Retailers will no longer
choose just one lane, but seek to thrive with an omni-channel model
that provides a seamless shopping experience through physical stores,
online sites, social media and mobile browsing.
“The maturation of e-commerce and the continued evolution of bricks-and-mortar
store layouts—or store closures—leads to retailers analyzing a wealth of consumer
data to better minimize any friction in the purchase lifecycle and personalize to
specific consumer needs in order to trigger a purchase,” says Ricardo Rubi,
retail marketing specialist/partner at New York consulting firm Simon-
Kucher & Partners.
4. Mall owners will continue to focus on evolving to meet changing consumer
tastes, meaning more “experiences” and mixed-use elements. Food halls,
theaters, gyms, restaurants and entertainment venue will remain in
demand as landlords work to find the right tenants to draw foot traffic.
“And experiential means more than just ‘give me a glass of wine with my
shopping,’” Carlson notes. “It means give me a TJ Maxx, so I can dig around and
find something unique It’s any way you can engage the customer to have to show
1/15/2020 Six Predictions for Retail Real Estate in 2020
https://www.nreionline.com/retail/six-predictions-retail-sector-2020 4/4
find something unique. It s any way you can engage the customer to have to show
up. It’s all about getting people in, and you have to make it fun.”
Landlords will also continue adding non-retail anchors like co-working
offices, hotels, apartments, medical and seniors housing to draw
consumers to their properties.
5. Artificial intelligence will play a bigger role in retail. “This will definitely
be at the forefront and is even here now; we’re just not aware how it’s capturing our
shopping journey,” says Anjee Solanki, national director of retail services
for the United States with real estate services firm Colliers
International.
AI captures not only what shoppers intend to purchase, but what inspires them
based on what they see through websites such as Amazon or Pinterest, Solanki
notes.
“The next time you’re looking for home-decorating inspiration, see what types of
ads organically pop up in your web search. Data on holiday shopping was
collected as early as June from “Pinners” searching for top-trending
gifts.”
6. Delivery speed will be top of mind for retailers. “Warehouse automation
allows merchants to deliver efficiently and quickly, cutting out the need for human
labor,” Solanki says.
At the same time, “same-day delivery,” heightened competition and costs
associated with creating the best omni-channel experience will also
create additional cost burdens for retailers, she adds.