Cottage Grove EDA to offer $50K for Hollywood Video demolition
The Cottage Grove Economic Development Authority is dipping into its coffers to partially fund the impending demolition of the building that housed the former Hollywood Video store.
The EDA is expected to offer a $50,000 grant from its trust fund to help the building’s owner, KCR Corporation’s Jon Rappaport, raze the vacant building, located on the corner of 80th Street and East Point Douglas Road. Mold had been found on the building’s exterior walls.
City Administrator Ryan Schroeder said that the project would be “hard pressed” to move forward if the city was not willing to help.
“We are in a unique situation because I don’t know that we would go through this whole process for every building, but this is a building that I think is sick,” Cottage Grove Mayor Myron Bailey said in April. “I think we’re more willing to help out because we want to get rid of a building that is sick.”
The push to help KCR Corporation, Bailey added, is also because of the two high-profile end users that are expected to anchor the building — Chipotle and Noodles & Company.
Both restaurant franchises have submitted letters of intent to occupy the space, which will be rebuilt on the existing footprint.
Noodles & Company is expected to occupy 2,697 square feet on the north end of the building, with a 493-square-foot patio. Chipotle is planned to occupy 2,366 square feet on the south end of the building with a 600-square-foot patio.
Schroeder explained at last week’s EDA meeting that KCR Corporation will be responsible for all demolition and reconstruction work.
“The new building will also provide us with a boost in tax revenue,” Schroeder said.
He added that the the expected payback timeline for the $50,000 will be over 11 years. The money from the EDA fund is not taxpayer dollars, but revenue collected from developer fees.
Economic Development Director Danette Parr said demolition is expected to take between two and three days, with construction occurring immediately after. Both restaurants are expected to open sometime this fall.
Prior to demolition, the City Council will have to sign off on the EDA’s agreement, an action that is expected at its May 21 meeting.