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2014-03-01 Eagan Business NewsJ O U R N A L O F T H E E A G A N B U S I N E S S C O M M U N I T Y First Quarter 2014 Vol. 13 No. 1 BusinessNewsEagan h C U page 3 Briefly: Eagan businesses in the news i n s i d e t h i s i s s u e ) page 4 Construction begins on new upscale apartments page 1 State of the City, 2014 Maguire highlights business successes and vibrancy. Not on our email list? To subscribe to Eagan Business News or E-Biz,our online publication, visit www.cityofeagan.com/EBN. Did you know that …? Eagan has the lowest combined taxes (state, county, city and school district) of any Minnesota city with more than 30,000 residents. Nearly 100 constituents, elected officials — including local legislators and City Council members — city staff members and business people gathered at the Eagan Fire Safety Center to hear Mayor Mike Maguire deliver his 2014 State of the City speech, “Growing Opportunity Through Partnerships,” on Thursday, March 20. Maguire kicked off his speech by highlighting Eagan’s strong finances and the booming redevelopment in Cedar Grove. “A $100 million, 100-store retail development like Twin Cities Premium Outlets mall [in Cedar Grove] doesn’t just happen overnight,” he said, lauding the myriad groups and individuals who helped the City assemble the land, develop the infrastructure, fight legal challenges and stay focused on the vision for a transit-oriented, pedestrian-friendly development. This August, the outlet center will open, bringing to Eagan 1,600 retail jobs. Additional area investments and development include a two-level parking garage, a Hilton Home2 Suites and The Flats. (See “Construction begins on new upscale apartments,” page 4.) Maguire noted that the new Eagan mall not only accounts for 34 percent of all new retail growth in the Twin Cities but helps Minnesota lead the nation in new retail growth. Maguire then singled out Jon Hohenstein, community development director, for his dedication and unflagging efforts in regard to redevelopment in Cedar Grove. (See “Minnesota Progress Award recognizes Eagan development,” page 2.) Turning to other business milestones, Maguire applauded $218 million in current building permits; numerous business expansions, including a $4.5 million project at Chicago Tube and Iron; and a record high of 54,000 people working in Eagan each day. He also noted that CSM Corporation is currently considering a mix of retail, medical offices and restaurants for the 51-acre former Lockheed Martin site, located at the second busiest intersection in Dakota County. “We are encouraging CSM to think of what mix and amenities will make this vital corner of Eagan continued on page 2 page 2 Minnesota Progress Award recognizes Eagan development State of the City, 2014 Maguire highlights Cedar Grove, business successes and vibrancy. During his State of the City address, Mayor Mike Maguire praised the numerous groups and individuals who have helped the City remain focused on creating a transit-oriented, pedestrian- friendly Cedar Grove Redevelopment Area. Construction of a Hilton Homes2 hotel will be underway soon. What makes Cedar Grove stand out is its complexity. Hohenstein notes that the City acquired and demolished numerous properties, oversaw environmental cleanups and successfully dealt with legal challenges. In addition, the “timing of the recession absolutely affected Cedar Grove.” While prior recessions affected private development, this one involved the City as property owner. Yet despite all of the roadblocks, “the City Council stayed patient, flexible and visionary about the area,” Hohenstein says. “They focused on the transportation-and-pedestrian vision for the area, its mixture of uses, and the desire to recreate the ‘gateway’ perception for the area. “Even during the recession, when we couldn’t control the market,” he notes, “the City Council chose to complete the acquisitions, to install the public utilities, to invest in transit, to pursue the second phase of Nicols Ridge and to work with Jensens on their parking needs. That way, when opportunities came, we would be as ready as we could be.” A team effort Hohenstein began working for the City of Eagan as an intern in 1985; but he quickly stepped up to the position of assistant to the city administrator, and what started as a six-month stint Jon Hohenstein is quick to point out that he didn’t apply for the Progress Minnesota Award. It was a coworker who recog- nized his deserving work — without Hohenstein’s knowledge. But once nominated, Eagan’s community development director made a worthy candidate. After all, during Hohenstein’s long tenure at the City, great progress has been made: Ecolab has expanded, as has a northeast Eagan development; the Grand Oak Business Park and Boulder Lakes Business Park developments have been created; Cedar Grove redevelopment is underway; and the U.S. Foodservice building and Snyder Warehouse have been repurposed as Clover Leaf Cold Storage and Murphy Warehouse Company respectively. Cedar Grove overcomes obstacles In April, Finance & Commerce will present Hohenstein with a Progress Minnesota Award, which recognizes individuals and organizations driving unique and innovative business growth and development in Minnesota. The award is timely. Eagan’s largest current development is well underway in Cedar Grove. Twin Cities Premier Outlets, formerly referred to as the Paragon outlet mall, will open in August. The Flats (an upscale apartment complex that will boast retail on the first floor and underground parking) has broken ground in the area and a city-owned two-level parking ramp. 2 Eagan Business NEWS J O U R N A L O F T H E E A G A N B U S I N E S S C O M M U N I T Y State of the City, 2014 continued from page 1 First Quarter 2014 Minnesota Progress Award recognizes Eagan development Award recipient Jon Hohenstein shares kudos with City staff members, the City Council and myriad business people. distinctive,” he said, explaining that it must be the right plan — both for the developers and the City. Maguire expounded on “vibrancy,” emphasizing Eagan’s need to compete for the “knowledge workers so crucial to our future.” He made the point, however, that competing isn’t simply about providing jobs, a strong economy and technology. Rather, he emphasized the importance of offering a “mix of suburban, urban and open-space experiences,” ensuring the connectedness of parks and trails, fostering public art, celebrating cultural heritages, growing a new appreciation among the next generation for local government, supporting community partnerships, and furnishing food and fun at community festivals — in fact, he announced a new community food truck event to be held this fall. Among the organizations recognized for their service to the community were the Eagan Crime Prevention Association, the Technology Working Group and Eagan Television’s public access studio, a partnership with Thomson Reuters. Nonbusiness-related topics included community partnerships, environmental accomplishments and challenges facing the City, including, most notably, the need to change the volunteer fire-department model. “Eagan has a great story to tell,” he said, concluding, “and for too long we have been quiet in telling it. I’m convinced the next chapters will be the best additions yet to that story — and made even better by the contributions of all of you.” ■ State of the City business takeaways City finances: •In 2013, Moody’s affirmed Eagan’s Aaa credit rating, the highest rate attainable. •Strong building activity pushed revenues $1 million over 2013 budget estimates. •Property values are rising again after years of decline during the recession. First Quarter 2014J O U R N A L O F T H E E A G A N B U S I N E S S C O M M U N I T Y Eagan Business NEWS 3g EBN is printed on paper which contains a minimum of 10% post consumer fiber. Cedar Grove: •Twin Cities Premium Outlets will open in August 2014. •Roughly 1,600 employees will find jobs at the new mall. •Construction of The Flats, an upscale complex with 192 apartments and retail, began in March. •Construction is continuing on a new two-level, 1,550-stall City-owned parking garage. •The Morrissey Group plans to build a new Hilton Home2 Suites. •Private investment now totals $117+ million. Business climate: •More than 54,000 people work daily in Eagan — the highest jobs total in City history. •Building permits currently total $218+ million, and 16 projects are valued at over $1 million each. •MISO, which manages the power grid for the Midwest and two Canadian provinces, opened its new 60,000-square-foot operations center in Eagan. •Businesses undergoing makeovers or expansions include Chicago Tube and Iron ($4.5 million), Summit Medical, Ecolab and Diffley Marketplace. •Interstate Partners plans to convert the Waterview office tower into high-rise apartments. •CSM is considering a mix of retail, medical offices and restaurants for the former Lockheed Martin site. • PEOPLE:Former Senator Norm Coleman discussed major issues facing Minnesota’s business community and advocated engagement by all during his address at the Dakota County Regional Chamber Legislative Breakfast on Friday, March 21. • BUSINESS:Blue Plus,the health maintenance organization affiliate of Blue Cross and Blue Shield of Minnesota, announced in March that it has acquired the Elderly Waiver claims-processing capabilities of Bridgeview Company in Duluth, Minn.… Negotiating, working with multigenerational teams and tapping courage were among the topics featured during the fourth- annual WomEn’s Conference, sponsored by the Dakota County Regional Chamber of Commerce on March 13.… According to the Movoto Real Estate Blog,Eagan ranks No. 10 among the “hardest working places in Minnesota” (with populations of 10,000 people or more), based on adjusted median household income, average time spent commuting, unemployment rank and average hours worked per week.… At NACR’s national sales conference, Eagan-based NACR, ConvergeOne and their business partners donated 55 new iPad Minis to Tangelo Park Elementary, both a Title 1 school and a nationally rec- ognized “A-rated” school in Orlando, Fla., where the conference was held. … Eagan-based Stream Global Services, Inc.,has been fully acquired by Convergys Corp., the leading U.S. provider of customer- management services; the new company, based in Cincinnati, Ohio, expects to earn $3 billion in revenue. … Eagan’s WSI Sports outfitted the U.S. Olympic ski-jumping team with high-tech suits that use the skiers’ body heat to keep them warm. WSI also outfitted the Seattle Seahawks for the Super Bowl. ■ Briefly: Eagan businesses in the news became a period of 13 years. Except for five years served as city administrator for Mahtomedi, Hohenstein has spent his entire development career in Eagan, returning in 2003. “It’s very gratifying to see the physical outcome of a development,” he says, explaining what he continues to find compelling about his job. “But it takes investors — business people — to take the risks. Our community development team helps shape the opportunities that hopefully reflect the community’s values and serve the community’s needs, but private investment makes it happen.” Hohenstein is quick to share credit for successful business developments, naming not only his community-development team members, but the City’s financial-planning and public-works teams, City Council members, developers, consultants, business people and others. “They all have important impacts on decisions and opportunities.” Looking ahead to future Eagan development, Hohenstein talks of the “new normal” after the recession, noting that investors are more cautious now. But he sees opportunities in southern Eagan and at the former Delta property in northeast Eagan. “As the business park market recovers there will be strong interest in Delta’s property and others nearby. The location is great.” Walking around Cedar Grove these days, Hohenstein says he finds it “very exciting and a little overwhelming” in person. “You can read the site and development plans, but when you actually walk the site, you understand how large it is and what a great opportunity it is.” ■ Jon Hohenstein, Eagan’s community development director, says new development inspires other property owners to reinvest. For example, owners of View Pointe Apartments and Ballantrae Apartments, both near the Cedar Grove Redevelopment Area, have made improvements to their complexes. Eagan 4 Eagan Business NEWS Business News 3830 Pilot Knob Road ●Eagan, MN 55122 Editor Karin B. Miller, Working Words, Inc. Designer Brent Kastler, Illumine Associates, Inc. Send comments and story ideas to EBN@cityofeagan.com. After a chilly groundbreaking on March 5, construction is progressing on The Flats, an upscale complex, which will feature 192 multifamily apartment units in the Cedar Grove Redevelopment Area. “Congratulations to the whole team for getting this project done,” said Mayor Mike Maguire,addressing the crowd gathered at Jensens Supper Club, located next to the new development. “This is a great project — not just for Stonebridge Communities but for the City of Eagan and for Cedar Grove Redevelopment.” Maguire noted that while the recession slowed development in the area, City Council members and staff remained committed to the City’s 20-year-old vision to create an area where people can “live, work and play.” Groundbreaking attendees got the chance to see full-color images of the design to come. “It’s not your typical suburban apartment building,” said Collin Kaas,Kaas Wilson Architects, explaining that the modern building offers a somewhat urban feel dictated by the dense redevelopment district. He also noted that the building is pushed to the outer edges of the 4.8-acre lot in order to create a focal point as you drive into the area and to conceal parking. When completed, The Flats will include one-, two- and three- bedroom apartments with high-end finishes; a sundeck and outdoor pool; a fitness center; a “connection café”; an indoor, heated parking garage; and a 13,000 -square-foot, first-floor space that can serve up to seven retail or office tenants. The Flats are scheduled to open in August 2015. ■ Standard U.S. Postage PAID TWIN CITIES, MN Permit No. 4902 ) U page 1 State of the City, 2014 Maguire highlights Cedar Grove, business successes and vibrancy. page 2 Minnesota Progress Award recognizes Eagan development hpage 4 Construction begins on new upscale apartments C page 3 Briefly: Eagan businesses in the news i n s i d e t h i s i s s u e Construction begins on new upscale apartments Grabbing shovels to break ground on The Flats in Cedar Grove were (from left) City Administrator Dave Osberg, City Councilmember Gary Hansen, Mayor Mike Maguire, President of Chase Real Estate Andy Chase, Stonebridge Owner Dave Anderson and Community Development Director Jon Hohenstein.