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Demolition planned for vacant Hollywood Video building in Cottage Grove

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Demolition planned for vacant Hollywood Video building in Cottage Grove
Cottage Grove Minnesota 7584 80th Street South 55016

After the recent discovery of mold inside the former Hollywood Video building in Cottage Grove halted development plans, demolition could be on the horizon.


Mayor Myron Bailey said last week that city officials are in talks with the building’s owner, Jon Rappaport, of KCR Corporation, adding that razing the property will most likely be the next step.

“As of right now, the plan is to tear down the building and try and save the concrete to build a new building on the existing pad.” Bailey said last week.

Despite the change in plans, he said that both Chipotle and Noodles & Company continue to show interest in Cottage Grove and are still expected to occupy the new building.

Earlier this month, the plan was to shift the vacant store closer to East Point Douglas Road and expand the building to include room for a fourth tenant, which was speculated to be a gourmet pizza restaurant or a dentist’s office.

However, with the tentative plan to rebuild on the current footprint, Bailey said there will be no expansion.

“They aren’t planning to build a bigger building because both Chipotle and Noodles say they don’t need a bigger space,” Bailey said. “So the size of the building is going to remain the same, it will face the same direction and have room for a third tenant. But the architecture will be a little nicer.”

In an effort to expedite the project, because both restaurants are aiming for a fall opening, the city is looking at two financing options, both involving the Economic Development Authority. One option, Bailey said, would be to front up to $50,000 for demolition costs. The money would be taken from the EDA’s trust fund, which consists of developer fee revenue. The second option would be to create a new tax increment financing (TIF) district to include just that property.

“I’m not sure if creating a new TIF district is going to work, but we are in negotiations to see what would work best for them and what would work best for us,” Bailey said. “And the money that we would take out from the EDA fund is not taxpayer dollars.”

Bailey added that he wouldn’t like to see a new TIF district created but said it wouldn’t be a dealbreaker. TIF-supported projects use expected future increases in property tax collections to support redevelopment.

“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,” he said. “I think we’re more willing to help out because we want to get rid of a building that is sick.”

The city is expected to continue negotiations with both Rappaport and the building’s realtor, Dave Carland, president of Venture Pass.

Carland could not be reached for comment.

The Cottage Grove EDA is also expected to conduct a special meeting later this month to sign off on a plan to move forward. If demolition is approved, it could begin as early as the end of the month.

“Both Chipotle and Noodles want to open yet this year,” Bailey said. “They are both still interested in this corner. They have a very intense timeline and they want to be open by September. I’m optimistic this project will happen.”

Emily Buss
Emily Buss joined the South Washington County Bulletin in February 2013. She covers local government in Cottage Grove, St. Paul Park and Newport, along with other general assignment reporting. She holds a bachelor's degree in journalism and mass communications from Minnesota State University, Mankato.
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