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Home My WebLink About7.a. Project Updates EXECUTIVE SUMMARY Port Authority Meeting Date: June 21, 2022 AGENDA ITEM: Project Updates AGENDA SECTION: Old Business PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 7.a. ATTACHMENTS: FedEx Article. APPROVED BY: LJM 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. After meeting with the new Port Chair, staff is changing the format of Port meetings. In order to facilitate new discussion regarding local economic development, the Chairperson’s Report and Commissioner Reports will be moved after the Consent Agenda. This is envisioned to be a brief 10-15 minute discussion among Commissioners regarding economic development projects, ideas, news, or concepts that they encountered over the pervious month. New Business will follow the Commissioner Reports. The meetings will conclude with a brief update on Old Business and Discussion. Projects in Progress The Morrison: Now that the project is completed, Ron Clark will be submitting invoices for approved grant reimbursements through Dakota County and DEED. Staff continues to work with Ron Clark on the tenant space for the commercial portion of the development. A ribbon cutting was held May 17th, 2022. Breweries/Tap Houses: OMNI Orchards: OMNI’s building permit has been approved and total grading work has started. The City is working with OMNI on two deferral agreements related to their building permit fees. Tap Society: No update at this time – project is currently on hold. Dave Schmitz/North 20 Brewing: Construction is progressing on schedule and is seeking state final approvals sometime at the end of June. Staff is working with the owner on a ribbon cutting date likely the week of July 4th. Israelson properties: Rosewood Commons at Highway 3/42: Plans have been submitted for the memory care and senior housing facility along with approvals needed for additional multi-family housing planned for the site. Rosewood Crossing: A building permit was issued for the next 32-unit apartment building. Rec Center/Life Time: The purchase agreement for approximately 26 acres of land and other relevant agreements were approved by the City Council on April 5th, 2022. The City’s website has a page dedicated to this project for additional information. Staff has begun to meet with the developers interested in portions of the eastern portion of the intersection. Staff expects conceptual proposals to begin to filter in this summer. Additionally, the Council and Port will likely see requests for residential projects on the northern end of the site. Staff is working with a housing developer on the Lennar owned western portion of the intersection. UMore Residential/Amber Fields: Maplewood Development is working with individual developers on the different housing types across the property. Grading and infrastructure work is underway. Staff has received applications for the first several phases of development totaling more than 900 housing units. Additional phases are currently being finalized for application. Super America/Speedway: The property was placed in receivership with Lighthouse Management. Their role is to find care for the liability, assets and property etc. The City will require underground storage tanks be removed. Staff continues to meet with Lighthouse Management to discuss next steps. Currently the site has several interested parties both related to a C-store use or redevelopment. The Home Depot/Project Osprey: Exterior utilities in progress. The extension of Boulder Circle is anticipated to begin in June. Scannell Project: Initial grading and infrastructure work has begun on the 585,000 square feet FedEx facility. This project was recently mentioned in the Twin Cities Business Journal. CDA Property: Schafer Richardson signed a purchase agreement with the CDA on the Akron property. Staff met with Schafer Richardson on June 7 to discuss submittal requirements and process. They will likely be on the July Planning Commission agenda. Sweet Harvest Building: A lease agreement has been signed and building permit approved for work on this facility. The new tenant is Stonebrook Equipment Inc and they create custom vehicles and fleets for businesses. They will use the entire space in addition to making some further site improvements. Highway 3 and 46: Both sites on the eastern and western side of Highway 3 have prospective projects that are likely to submit plans this summer. Plans have been submitted for the Frana for a second Rosemount facility on the Western section of this site. This is expected to go before the Planning Commission in July. Summit Dental: Summit Dental opened a new location on the Merchant’s Bank site and a ribbon cutting was held in May. The additional back half of the site is slated for additional commercial/office space at a later date. RFI and Inquires (February/March) Housing: Staff met with 4 developers interested in multifamily sites in Rosemount. The developers are at various stages in the site process, but all are focusing on the high-density sites near the Akron/42 intersection. Commercial/Services: Staff met with 3 developer interested in retail or commercial projects. Staff will provide an update on an RFI meeting that some Port Commissioners attended in May. Restaurant: Staff met with 1 restaurant user this month. Industrial: Staff had 4 inquires or discussions regarding Business Park, UMore, Opus, and County Road 46/Hwy 3 sites. 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. One project is scheduled for completion at the end of June. Two projects are in various stages and one tenant is still working on an agreement with the building owner as of June 7. Small Area Plan Highway 3/46: WSB completed a Small Area Plan (SAP) on the commercial guided properties adjacent to Highway 3 and North of County Road 46 to facilitate new business investment. The report recommended a land use change from commercial to business park. The Planning Commission held a public hearing on April 26th and recommended approval for the proposed change. There was not any public comment received. The Council considered this proposal May 17th and the proposal will now move though the Met Council Comp Plan Amendment process. Zoning Code Update RFP: Staff is working on an RFP for the previously discussed zoning code update. The Dakota County CDA Board recently approved the funding for this project utilizing Community Development Block Grant (CDBG) dollars. Staff is working on a finalized a draft this month before putting the project out for proposal. Once a consultant has been selected the entire project should take 3-4 months. The process staff envisions would include working closely with the Community Development Department through the update process, a joint session of the Council and Planning Commission, and then a public hearing on the proposed revisions. Business Subsidy Policy: Staff is submitting on a final draft of this project, which will be considered at the June 21st Council meeting. MREJ: Staff attended the Minneapolis Real Estate Journal’s Mid-Year Forecast. Commercial and industrial growth is expected to remain strong within the metro, particularly in suburban areas. With the increase in home prices and interest rates, multifamily is expected to be highly in demand as housing options become more limited. Developers expect a strong in in multifamily demand especially in suburban markets. Office demand is expected to remain somewhat weak with a focus on building upgrades to attract tenants or conversion to other uses for lower class office space. 6/17/22, 8:35 AM Rosemount's Rich Valley Golf Course to be converted into business park, with FedEx as tenant - Minneapolis / St. Paul Business … https://www.bizjournals.com/twincities/news/2022/06/14/rich-valley-golf-course-to-be-converted.html 1/9 Please Sign In and use this article's on page print button to print this article. COMMERCIAL REAL ESTATE Rosemount's Rich Valley Golf Course to be converted to business park, with FedEx as tenant A site plan of Scannell Properties' business park redevelopment in Rosemount KIMLEY HORN VIA CITY OF ROSEMOUNT The Twin Cities’ largest developer is planning to convert a Rosemount golf course into a business park that's anchored by a FedEx Ground distribution center.  IN THIS ARTICLE FedEx Corp. Company Scott Moe Person By Kelly Busche Reporter, Minneapolis / St. Paul Business Journal Jun 14, 2022 6/17/22, 8:35 AM Rosemount's Rich Valley Golf Course to be converted into business park, with FedEx as tenant - Minneapolis / St. Paul Business … https://www.bizjournals.com/twincities/news/2022/06/14/rich-valley-golf-course-to-be-converted.html 2/9 Scannell Properties recently bought around 120 acres of the Rich Valley Golf Course for over $11.8 million. It now owns the entire golf course, which closed late last year. In February, the Indianapolis-based developer acquired two parcels on the north end of the course, totaling over 80 acres, for almost $4 million. Scannell bought the golf course land from the Rahn Family in all-c ash deals, according to public filings with the Minnesota Department of Revenue. The golf course has been located in the southeast-metro city since the late 1980s. The developer plans to first construct a 548,000-square- foot warehouse and distribution center that will anchor the business park. The city confirmed it had received building plans for a FedEx Corp. (NYSE: FDX) facility. "We plan to develop the land as an industrial park,” Scott Moe, development director with Scannell, said in a provided statement. "This location is perfect as a manufacturing and logistics hub and offers easy access to U P G R A D E T O N AT I O N W I D E AC C E S S Get Industry Insights From 45+ Major Cities PLUS ACCESS EVERY STORY FROM EVERY NEWSROOM UPGRADE MY MEMBERSHIP 6/17/22, 8:35 AM Rosemount's Rich Valley Golf Course to be converted into business park, with FedEx as tenant - Minneapolis / St. Paul Business … https://www.bizjournals.com/twincities/news/2022/06/14/rich-valley-golf-course-to-be-converted.html 3/9 distribution routes across the upper plains and down through the Midwest." The center could employ around 400 to 600 people, with a maximum of 300 people working at the center at one time, Moe said during a public meeting late last year. As for the rest of the business park, several smaller buildings could rise on the south side of the park, according to plans submitted to the city. The business park is located east of Highway 52 and southwest of Spring Lake. UMore Park, a nearly 5,000- square-foot property owned by the University of Minnesota, is a few miles directly east of the site. "This project is the first major project east of Highway 52 and will likely spur future development and transportation infrastructure improvements in the vicinity,” the city wrote in its report on the project. The Rosemount City Council approved the project last fall; and Scannell anticipated breaking ground early this year, Moe said. Largest Real Estate Developers in the Twin Cities Ranked by Metro sq. ft. developed, 2019-2021 Sponsored by PlanForce Group 1 Scannell Properties 4,102,462 2 United Properties 4,064,602 3 Ryan Cos. US Inc.3,738,514 Rank Name Metro Sq. Ft. Developed, 2019-2021 View This List  DEADLINE: FRIDAY, JULY 1, 2022 2022 Fast 50