Premier Storage Proposes to Convert Former Nightclub to Self-Storage in Cottage Grove, MN

Premier Storage LLC, a Minneapolis-based self-storage operator, is proposing to buy a former nightclub in Cottage Grove, Minn., and convert it to a 71,000-square-foot, mixed-use self-storage facility. The Cottage Grove City Council is expected to approve the development’s formal site plans at its meeting today, according to the source. If given the green light, construction will begin immediately and the facility will open next spring.

Built in the 1970s as a roller-skating rink and later transformed into a nightclub, the property at 7359 Point Douglas Road West has been vacant since 2007 when “The Rush” closed. The 3-acre site has an existing 23,000-square-foot building that would be converted to self-storage. Premier would also construct four more buildings that would include two single-story self-storage structures, a 99,000-square-foot office and showroom, and a 21,000-square-foot office and retail area.

The property has fallen into disrepair since the nightclub closed, the source reported. During an inspection earlier this year, officials found mold growth, a gaping hole in the roof, an exposed electrical panel and wires. City attorney Kori Land deemed the conditions “deplorable.”

The current owner, Entertainment Concepts, was also behind in its property taxes, according to the source. Premier paid off more than $342,000 in delinquent taxes on the owner’s behalf, with the intent to develop the site. The tab included about $89,000 for interest and other penalties and fees as well as unpaid taxes dating to 2012.

Premier Storage Owner and Principal Todd Jones told the Cottage Grove Planning Commission on Aug. 24 that the conversion would include an interior overhaul of the existing structure. “There will be a new roof, new mechanical, new sprinkler system, new everything,” he said.

As part of the site plan, Premier Storage will be required to construct a 6-foot concrete sidewalk along the property line on West Point Douglas Road, and plant trees and shrubs around the facility. The removal of the existing pavement, which is in need of repair, is another matter still being discussed between city officials and the developer. Jones expressed his concerns about the cost of the removal.

The site plan also includes an 8-foot wrought-iron gated entrance on the southeast and northwest corners of the property, according to Cottage Grove Senior Planner John McCool. Tenants will have access to a unique code to enter the property. “There will be no individual access from the exterior. You will not see the interior from the exterior,” McCool said.

The facility won’t resemble self-storage facilities of the past, Jones said. “I want this to look like an office space from the front. It will be a very, very nice facility.”

The driveways will be used as shared access points for future adjacent development, McCool said. Premier will either sell the remaining vacant 13.64 acres to another developer, build to suit, or enter into a joint venture with another entity, Jones said. He has aggressively pursued all three options to “get the property developed sooner rather than later. We want to see it developed responsibly,” Jones said.

Premier previously developed or owned about 40 self-storage facilities in Arizona, California and Minnesota. It currently operates two Minneapolis Storage Centers in the Minneapolis area.

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