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Home My WebLink About4.a. Project Updates E X E C U T I V E S U M M A R Y Port Authority Meeting Date: January 18, 2022 AGENDA ITEM: Project Updates AGENDA SECTION: Old Business PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 4.a. ATTACHMENTS: None. APPROVED BY: LM RECOMMENDED ACTION: Information Item. ISSUE Previous discussions with the City 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. The Morrison: The first half of the building has started move-ins and is continuing interior work on the second phase. With the completion of first residential phase, the City is moving forward with the issuance of the TIF note. Ron Clark indicated leasing has been strong and all the multi-bedroom units have been leased. Breweries/Tap Houses: OMNI Orchards: The land was closed on during the week of November 1st. Staff is working with the project architect on the building permit submittal. Tap Society: No update at this time. Dave Schmitz/North 20 Brewing: No update at this time. Summit Dental: Shell work has begun on the Merchant’s Bank site, and staff is working with the building owner on the timeframe for a second building. Israelson properties: HWY 3/42: Staff spoke with Luke Israelson in on December 21 regarding the building plans and elevations for the commercial space. Rosewood Crossing: A building permit was issued for the next 32-unit apartment building. Rec Center: Work on the public-private partnership Recreation Center continues, with now weekly meetings with the project team. The purchase agreement for approximately 13 acres of land and other relevant agreements should be considered by the City Council in the coming weeks, which would initiate the project in earnest. UMore Residential: Amber Fields is working through the subdivision agreement and the final plat for all the outlots that encompass the different phases of development that was approved in December. Maplewood Development closed on the property in December. CDA Property: The CDA and Schafer Richardson are working on the finalizing the purchase agreement. Project submittals will likely come in March. Akron Avenue & County Road 42: Staff is reaching out to commercial users regarding sites along Akron. Several parties have expressed interest, especially as plans for the rec center move forward. Staff scheduled several meetings with C-stores and grocery users regarding sites on the Northeast section. Multi-Family: Staff continues to meet with multi-family and mixed-use developers for sites at Akron, UMore, downtown and other sites. Interest in multifamily housing remains elevated. Staff met with several developers in December and January. Restaurants: Staff continues to meet with interested potential restaurateurs. Any new food and drink space will likely have to be new build as there is not any current inventory that can accommodate any operation over 2,000 square feet with outdoor space. Due to the pandemic’s effect on the hospitality industry, lenders are requiring additional upfront capital for new restaurants. Staff expects this to be an issue for at least the next few months. It will affect the timing, phasing and size of any new restaurants seeing to own and build a property. Super America/Speedway: A hearing is scheduled for this month related to receivership, which would allow the court to appoint a person/company to care for the liability, assets and property etc. INDUSTRIAL UMore Industrial site: Staff continues to meet with potential industrial users for the UMore site. The prospective user is highly interested in the site and further talks are scheduled. Biscayne Business Park/Cerron Commercial Properties: APPRO/Cerron continues to work with a few potential prospects for new spec industrial space. Rosemount Business Park: A developer is exploring a possible spec industrial project immediately south of the Business Park. Preliminary concept plans have been shown to the council at a work session, where a general support was indicated. Staff met with several other industrial users who were interested in the remaining Pahl property in the Business Park. Staff is submitting numerous RFIs on industrial sites, which is showcasing the continued interest in Rosemount’s industrial sites. Several potential users who requested RFIs in 2021 have returned for additional information and are moving forward in the selection process. Opus Site: Staff met with a potential industrial user in December regarding potential development on the Opus/Flintlock 52 site and is moving forward with an NDA. Other industrial users have expressed interest in the site. Scannell Project: The Met Council approved the land use change in December. Scannell is revising the site plan and plat based on feedback from the potential user. OTHER Downtown Façade Grant: Five businesses have fully executed grant agreements. As mentioned at the December meeting, getting bids from contractors are proving to be the biggest hurdle in moving forward with projects, so staff is trying to be flexible with the timeline on façade improvements as many will likely be completed in 2022. One project has been completed and has submitted paid invoices. 2021 Permit Numbers: 2021 was a record year for building activity in Rosemount. The total permit valuation for new projects hit a record $146 million dollars, an almost 40% increase from 2020’s $105 million valuation. Both residential housing and commercial/industrial projects showed significant increases in activity. Commercial and industrial projects were the leading driver increased permit valuation in 2021, which represents a shift from a historically residential lead market. Commercial and Industrial permits rose from 17 in 2020 to 23 in 2021, and total valuation increased from $8 million to $43 million , a 435% increase. Major projects broke ground in the Rosemount Business Park and strong commercial and industrial demand is expected to continue into 2022. Housing remained the largest sector of activity and housing valuations broke $100 million for the first time, representing a 10% increase over 2020. Single family homes lead the way in permits issues, with a record 226 units in 2021, up from 155 in 2020. 2021 saw the addition of 340 total housing units added between single family (226), townhome (82) and multifamily developments (32). Housing development in Rosemount has dramatically increased year over year since 2010 when 80 units of was brought online. Total actively for all permits citywide increased from 1,415 to 2,219. Proportion of Housing by Type Total Units SFH Multifamily/Townhome % SFH 2021 340 308 32 90% 2020 389 265 124 68% 2019 274 193 81 70% 2018 256 184 72 71% 2017 135 118 17 87% 2016 129 101 28 78% 2015 174 94 80 54% Total 1,697 1,263 434 74% 0 50 100 150 200 250 300 350 400 450 2010 2012 2014 2016 2018 2020 Units of Housing by 2010-21 Potential Units of Current High-Density Sites Site Acres (Multifamily) Max Units (40/acre) Amber Fields 28.6 1,114 (740 proposed) CDA Property 10 400 Emerald Isle 13 520