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09-27-11
City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, September 27, 2011, 4:30 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN Call meeting to order 2. Approve August 30, 2011 meeting minutes 3. Presentation by Steve Mielke on the Development Forum 4. Review and Discussion of Greater MSP Membership in 2012 5. Update on Business Marketing Strategy Project (To be presented at the meeting) 6. Director's Report 7. Adjourn Attachments: August, 2011 Building Permit Report July, 2011 Foreclosure Update Signs of a rebound in Minnesota manufacturing? - MinnPost.com, 9/19/2011 Goodwill's building spree extends to Twin Cities exurbs - Finance & Commerce, 9/13/2011 State's private sector adds gobs — StarTribune.com, 9/15/2011 Greater MSP aims to woo new business — StarTribune.com, 9/10/2011 Analysis: 8,500 apartment units proposed across Twin Cities - Finance & Commerce, 9/6/2011 Continued: Pledges of gob growth fall short at Coloplast — StarTribune.com, 8/29/2011 City of Lakeville Economic Development Commission Meeting Minutes August 30, 2011 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Brantly, Starfield, Tushie, Emond, Longie, Ex- officio member Mayor Mark Bellows, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser, Ex- officio member City Administrator Steve Mielke. Members Absent: Comms. Smith, Vlasak, Schubert. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist; Daryl Morey, Planning Director; Tripp Muldrow, Arnett Muldrow & Associates. 1. Call Meeting to Order Chair Matasosky called the meeting to order at 4:30 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve July 6, 2011 Meeting Minutes Motion 11.11 Comms. Tushie / Brantly moved to approve the minutes of the July 6, 2011 meeting as presented. Motion carried unanimously. 3. Presentation by Tripp Muldrow of Arnett Muldrow & Associates on Review of Marketing Strategy Project Mr. Kienberger introduced Tripp Muldrow from Arnett Muldrow & Associates whose firm was retained to complete Lakeville's Business Marketing Strategy. The composition of a steering committee was reviewed and it was noted that Commissioners Brantly and Longie would be representing the EDC on it. Mr. Muldrow outlined his firm and reviewed some previous projects that he's completed as a reference for the type of work he'd be doing for Lakeville. Mr. Muldrow and the EDC discussed project outcomes and expectations along general characteristics of Lakeville to help Mr. Muldrow compile background information for the marketing project. Economic Development Commission Meeting Minutes July 6, 2011 4. Continued Discussion Regarding Manufacturing Uses in the Office Park (OP) Zoning District Mr. Morey reviewed the EDC memo outlining previous discussions regarding the removal of manufacturing as a conditional use within the OP Zoning District. Staff researched several other cities' ordinances for similar zoning districts and reviewed several suggestions for reincorporating manufacturing as a conditional use. Language from other cities that could be utilized includes: • Light manufacturing and processing of a type producing negligible smoke, dust, odor, fumes or noise. • Processing, fabrication, storage or manufacturing light materials or wholesaling operations or service. • Light fabrication /manufacturing when ,contained entirelywithin the building. • Manufacturing, production, processing, cleaning, storage,, - servicing, repair or testing of materials, goods or products that is wholly contained within a building and which meets and maintains all applicable standards established by the state. • Manufacturing, compounding, assembly; packaging, or indoor storage of products and materials as an accessory use provided that such activity shall not occupy more than 20 %0 of the gross floor area of the building. • Offices with attached manufacturingaPr.wareliouse combinations wherein manufacturing or warehouse, sparshall not.exceed 90% of the floor area per occupant:'- Office space shall =be placed in a location nearest to the customer entrance.,:. Vice Chair TUI§hie-- noted : - Ahat ; he felt - manufacturing should be included as a conditional use within the OP - distric( but. should be a function in addition to an office use. -` Chair Matasosky limiting the percentage of manufacturing allowed but limit retail. Vice Chair Tushie agreed that the hours and traffic associated with retail uses aren't compatible for the areas zoned OP. He recommended using some of the language from bullet points 2, -3 and 5. Mr. Mielke stated that the Planning Department will draft some ordinance language and bring it back to the EDC and then the Planning Commission. Chair Matasosky added that businesses and landowners potentially affected by these changes should be notified. [Chair Matasosky left the meeting at approximately 5:45 p.m.] 2 Economic Development Commission Meeting Minutes July 6, 2011 5. Presentation of Mid -Year Development Update Mr. Olson reviewed a mid -year development presentation with the EDC and noted recent projects that have either recently been completed or are under construction. [Vice Chair Tushie left the meeting at 5:55 p.m. creating a lack of a quorum. No official business was conducted after this time.] 6. Director's Report Mr. Olson reviewed the Director's Report. 7. Adjourn The meeting was adjourned at 6:00 p.m. ; Respectfully submitted by: Attested to: Adam Kienberger, Recording Secretary ';:::R. T. Brantly, Secretary 3 item W. 3 LYRU7 Memorandum City of Lakeville Administration Department To: Members of the Planning Commission Members of the Parks, Recreation and Natural Resources Committee Members of the Economic Development g9mmission From: Steven C. Mielke, City Administrator Allyn G. Kuennen, Associate Planner Date: September 16, 2011. Subject: Packet Material for Advisory Committee Discussions. Agenda Item: Development Forum Input Analysis. BACKGROUND INFORMATION: Over the past several months the City has embarked on a process to explore the various aspects of the development process in Lakeville and to receive feedback from the development community in an effort to seek "continuous improvement' in the development process in Lakeville. The process, thus far, has included the following steps: 1. The development and administration of a survey instrument intended to spur discussion and ideas on how the City might improve the process and viability of development in Lakeville. 2. A discussion forum to explore several aspects of the development process and regulations. 3. City Council review of the comments received through the development forum. Step four in the process is to review and discuss with the Parks, Recreation and Natural Resources Committee, the Planning Commission, the Economic Development Commission and the City Council as to how to better improve the development process and opportunities, based upon the input received during the development forum. The fifth and final step in the process will include implementing revisions to processes, policies and ordinances to accommodate the determined changes as directed by City Council. Development Forum Input Analysis: The following is a list of written comments that were reviewed by City Council at their June 27, 2011 work session. The comments were submitted through the development forum survey and during the subsequent development forum meeting held on June 15, 2011. The list is divided into five categories: regulations /process, infrastructure finance, development fees, relationships /communications and miscellaneous items. The comments /suggestions in each of the five categories have been further subdivided into types, either administrative issues or policy issues. Administrative issues are items that can be revised or modified on the staff level whereas policy amendments will require official actions by the City Council. Staff will review the development forum comments and Staff's analysis and response with the Parks, Recreation and Natural Resources Committee at their September 21st meeting, with the Planning Commission at their September 22nd work session and with the Economic Development Commission at their September 27th meeting. If any commission or committee members have any questions before then please contact us. Comment/Suggestion Staff Analysis /Response Administrative: 1. Look for alternative ways to meet the City's goals by working with the developers rather than create ordinance standards. 2. Defined submittal and review schedule for Planning Commission meetings. 3. Beginning process could be more efficient by combining comments from Economic Development, Planning and Engineering Departments. 4. Provide a more complete review of engineering plans to reduce the number of resubmittals and coordinate the review comments with the planning and economic development staff. 5. Provide a list of what is needed for the project to meet all City standards to reduce the number of resubmittals. 6. Continue to hold meetings with staff in the early stages of the development to make the Planning Commission and City Council review efficient. 7. Sketch plan process requires too much information on plans. 8. Consider more flexibility in engineering standards or only require those standards that apply to a particular project. 10. Streamlining the staff, Planning Commission and City Council review process whenever possible. Streamline the red tape and make the review process easier. 11. Review of environmental standard as they Ordinances and Process: The City has and will continue to monitor development comments regarding specific ordinance standards and revaluate as needed. The Zoning and Subdivision Ordinances are living documents and do require occasional clarification and adjustment. The City in the past has held developer focus groups as needed when ordinance revisions are being considered — this process will continue to be utilized. The City is reviewing the possibility of preparing a meeting and application review schedule that would be based on the submittal of full and complete applications. The City will continue to hold pre- submittal meetings to identify major issues outside of regularly scheduled Development Review meetings on an as needed basis to better prepare the developer and City for when the application is submitted for the formal development process. The pre- submittal meeting can be used to help identify steps or requirements that may not be applicable to a particular project to help stream -line the review process. The City currently combines comments from Planning, Engineering and Community and Economic Development Departments when responding to formal development applications. Staff will also provide 2 have grown through the years. Need to try and reduce the levels of environmental regulation when it comes to ponding, infiltration, rain gardens, etc. MPCA doesn't seem to want to talk about the rules and regulations. Stormwater ponding, regional ponds, etc. may be overdone. coordinated responses regarding pre - application review comments Documentation needs to be provided to applicants that clarifies there are two Engineering Department reviews that occur during the development process — subdivision plans as prepared for Planning Commission and City Council consideration and construction drawings are completed for constructing the project in the field. The City has found that most resubmittals occur due to incomplete plans submitted by the developer's engineer or revisions to technical details — staff will continue to work to provide the developer or engineering firm with all required information and specifications via a checklist that will guide and assist the developer and his consultant while preparing plans for submittal. Design Standards: The City can consider new and innovative products and procedures or flexibilities in the engineering standards but consideration must be given to the City's long term assumption of public infrastructure improvements and maintenance as well as meeting required state and federal regulations. Regulatory Environment: The City will continue to review proposed environmental standards set forth by County, State and Federal regulators to help increase efficiencies and reduce duplication within the regulations and permits. The City is part of the Minnesota Cities Stormwater Coalition. The Coalition represents city concerns to the Minnesota Pollution Control Agency (MPCA), the Department of Natural Resources, the Board of Water and Soil Resources, and other state agencies involved in stormwater compliance activities. The City is required to adopt and implement the environmental standards put forth by the MPCA and Vermillion River Watershed Joint Powers Organization (VRWJPO) to retain permitting authority on a local level. Local permitting provides applicants with reduced review time, and more flexibility and options. Policy: 1. Look for ways to shorten the approval process. 2. Review parking standards such as townhomes for effectiveness and need. 3. Review standards for residential lots along county roads to reduce cost or change buffer standards and lot sizes. 4. City should consider short term "interim regulations" until the "new normal' comes back. 5. MUSA staging is not necessary as this is a growth control measure. City should consider a different approach to allowing sewer extensions. 6. City should review regulations on "taste" related items, such as color, types of tip up panels, etc. 7. Consider reverting back to pricing and standards of 10 to 15 years ago until the economy improves. 8. Consider revisions to ordinances to provide flexibility in development standards Ordinance Amendments: Ordinance amendments are being considered including revisions to allow a one year preliminary plat extension to be completed administratively rather than by City Council and an amendment eliminating the need for final plats to be reviewed by the Planning Commission allowing them to go directly to City Council for approval. Staff will analyze current parking standards for townhomes and review them with Planning Commission at a work session. Staff will review costs, flexibility in berm height and drainage issues regarding residential buffer yard standards and review the data with Planning Commission at a work session (some buffering is required per County noise abatement standards for those homes adjacent to County roads). Staff will also review buffer yard berm height requirements that may also provide more flexibility in lot depth /design. A survey of the development community may need to be considered to determine what regulations could be temporary suspended The City will need to consider long -term maintenance /operating costs of public improvements constructed within developments and what future financial burden this could impose on City residents. A MUSA analysis will be completed this winter to determine what can be currently serviced and what areas my need service extensions. Any amendments to the future MUSA areas would require a Comprehensive Plan amendment and Met Council approval. May also need to consider effects on builders and developers of land with approved preliminary plats in the current MUSA. Planning Commission can review current standards regarding exterior building materials and the PUD standards at a work session. City Council would need to consider pricing and the Planning Commission would need to consider regulations regarding reverting pricing and development standards back to 15 years ago. n lnfrastructure Finance. - - A Administrative: Securities: 1. Letters of credit need to be reviewed - current An alternative option would be dispersement practice is like being financed twice for the agreements which are based on bid prices not an same project. Consider alternate methods to engineer's estimate and includes a 3.25% letters of credit. Find other ways to provide administration fee as apposed to a 3% for a letter of securities with the same level of assurance. credit). 2. The City asking for escrows from existing companies can be perceived negatively. Fees: It is important that all business, existing and new, be treated equally and the City needs to insure public infrastructure is properly restored and inspection costs are recovered and not borne by tax payers. Policy: Public Investments: 1. City needs to share in financing infrastructure. Historically the City Council has required developers to 2. Beneficiaries of the infrastructure are the pay for infrastructure cost with the development of their properties next door so they should be involved land so as not to burden existing tax payers. as infrastructure stakeholders. 3. Whoever benefits from the roads should be The City could consider other financing options such as involved in building them. area assessments similar to the Ipava Avenue project 4. Consider cost share for road improvements or utilize MSA funds as they become available. and infrastructure costs. 5. Most cities today are willing to provide some Collector roads through a new subdivision have form of subsidy to a project to help get it off the historically been built by the developer. The City may ground. need to consider a policy for reimbursement of over 6. Multi- family density's in Lakeville are too low for sizing the road the majority of housing types being considered by housing developers. City Council and the Economic Development Commission would need to consider funding policies regarding high density housing The Planning Commission would need to review the current zoning and land use map regarding areas zoned or designated for high density housing for adequacy. Development Fees Administrative: Development Related Fees: 1. Maybe more of the fees can be collected at the There are ten different connection charges and other end, when the house is sold - timing of the fees development fees. In most cases fees are collected to should be reviewed. pay for infrastructure already in place and available for 2. Process for submitting and releasing letters of the developer and previously paid for; i.e., storm ponds, credit needs to be reviewed. major storm drainage systems, sewer and water main 3. To be in a competitive position, value needs to trunk lines etc. It's the same with a park and associated be attached to the fee. I improvements constructed. A neighborhood park ma already have been installed with one development providing the land and other developments in the parks service area paying cash for park improvements and area trails. Thus the need to have verified cash dedication requirements paid at the final approval stage. Payment of fees up front allows for good planning by knowing the funds are available to invest in proposed parks and infrastructure. Also allows us to provide accurate installation time lines to area residents such as for planned park and trail facilities. Using the collect at building permit stage approach makes for much uncertainty and an unreliable revenue stream. Possible option is to collect park dedication cash fee with buildinq permit Assess storm water service area charge with building permit Paying at the building permit stage puts the burden on the home builder or new resident and not the developer who initiated the project causing the need for required park and recreational facilities and infrastructure improvements. The home owner eventually pays for all the fees in the price of the home and lot not the developer. In the past, collection of park fees at the building permit stage, created additional work for the Building Inspection Department and was more difficult to track for finance and accounting purposes. The developer is often reimbursed for trunk over sizing through a reduction in storm area charges. This could be difficult to administer if it was collected with the building permit. Documentation should be provided to all applicants that clearly explains what fees are required and how the monev will be used. Letters of Credit: Releasing a letter of credit includes a four step process outlined in Engineering Specifications book. The City may want to consider eliminating the lien waver requirement and review infiltration basin security requirements to see if amendments could be made. The landscape inspection requirements for the release of t he _ landscaping security should be clarified and n outlined better within the development contract (reduce landscaping portion by 50% following the installation of the landscaping). 2. 3. 4. Policy: Park fees need to be re- evaluated — have the park dedication fee reviewed according to current property values. The City of Lakeville doesn't need its own electrical inspector, if the state has one. Fees in general are an issue and should be reviewed. SAC and WAC fees need to be reviewed. Revisions have been made this year to provide flexibility in the submittal of the letter of credit by allowing them to be submitted prior to the release of mylars instead of prior to City Council.approval. Fees: Park dedication fees are currently under review and City Council will be reviewing the park dedication fee at a future work session. The overall fee schedule is currently under review. SAC and WAC fees are currently being reviewed as well. Currently policy is that utility infrastructure is to be financed by the developer to keep water rates low for commercial and residential property owners. Service Delivery: The City Council has reviewed local versus state electrical inspector and has chosen to keep a local inspector - whether it is a staff person or contractor remains to be determined. I' Relationships /Communications: Administrative: 1. 2. 3. 4. 5. l 7 Need to have City and Developers work as a team and the City needs to listen more to the developer's ideas. City tries to "extract" as much as possible from developer. Need to develop a "happy medium" so that neither side "walks over the other'. Concern about us versus them mentality. Need to treat all developers the same. When the standards don't allow a specific course of action, look for alternatives to accomplish the goal. Engage with current business owners to find out why businesses have left and what would bring them back. Provide an exit interview process for businesses that have left. Team Approach: The City has historically viewed the development process as a team effort. This process is on -going and has recently included the development forum process. The City is reviewing fees and policies due to comments received at the development forum. All policies and regulations should be applied consistently and uniformly The City will consider alternative standards which maintain long -term cost effectiveness and quality infrastructure. It is not always realistic to bring some businesses back that have left since many are due to going out of business. The majority of the time the business has left prior to 7 the City being notified which makes exit interviews difficult. Policy: Coordination: 1. Concern that the staff, Planning Commission Clear and coordinated direction must be maintained and Council were not always on the same page among City Council, Planning Commission and staff. causing plans to change through the process. 2. Promote and market the community more to The City is in the process of developing marketing bring in development. strategies and a marketing plan 3. Create a process where other businesses help the City bring in more business to Lakeville. The "businesses recruiting business" concept will be reviewed and considered during the preparation of the marketing strategies and marketing plan currently being developed. Miscellaneous Items' Policy: Term Limits: 1. Planning Commissioners need to have a time If a committee or commission term limit policy is limit as to how long they serve on the considered it should be uniformly adopted among all Commission board. advisory boards city wide. City FaMi Community and Economic Development Memorandum To: Economic Development Commission Steven C. Mielke, City Administrator From: David L. Olson, Community and Economic Development Director CC: Adam Kienberger, Economic Development Specialist Date: September 23, 2011 Subject: Discussion of Membership in Greater MSP Kathy Schmidkofer, Executive Vice President of Greater MSP (Minneapolis Saint Paul ReVonal Economic Development Partnership) will be in attendance at the September 26 City Council Work Session to present information on this new organization. Greater MSP is a new private — public partnership created earlier this year and is dedicated to growing the economy of the 13- county Minneapolis Saint Paul Region. A summary of the types of activities that Greater MSP will be involved in along with background information on the MSP Region are outlined in the attached PowerPoint presentation that Ms. Schmidkofer will be presenting at the Work Session. The City's Preliminary 2012 Budget includes the cost of membership to Greater MSP. The cost for membership for cities over 50,000 in population is $25,000 per year. At the last Council Work Session, Council Members inquired as to what cities have become members of Greater MSP. In Dakota County, the cities of Apple Valley, Burnsville, Eagan, and Rosemount along with the Dakota County CDA are currently members. The cities of Prior Lake, Savage, Shakopee, Belle Plaine, Elko New Market, Jordan, New Prague along with Scott County are also currently members. Some of the other metro cities that are already members include Bloomington, Edina, Woodbury, Chaska, Lake Elmo. EDC members were invited to attend the Council Work Session. Approximately one half of the EDC members have indicated that they will attend. It is anticipated that EDC members that attended the Council Work Session can share their thoughts and observations on the presentation and discussion at the EDC Meeting. The Council does not need to make a decision on membership to Greater MSP until the budget is finalized later this year. L/ m m m m y ' � 3 -h r o —I -m a m p O r+ � 8 o O o c <_ O V) D m 3 rD _0 r-r r+ � _ o "a � �/ T O (p 3 L/ m m y ' � 3 -h r o —I -m a m p O r+ � 8 o O o c <_ o V) 3 m 3 rD _0 r-r � _ o "a � �/ T O (p m N N O N N 3 L/ m °' � - � m �J N (D :3 C) m a m p O (D N 0 N � 8 o O o D r* O m p D cn cn � _ o "a N N Ln 3 (D T O (p 3 rD rF i m D m T v N m D m m N Y n c 70 m N N N m rF N 0 0 S j �m CL cr m W C D to W M N V 7 m 3 ' GIQ g m � n 3 'ti = Oq N 0 m :E _ mac, CL rU O `^ S o � CF Q' CD 3 O X d 7 3 VQ fp O n N (D 7— � -� X O H 7 �• N H O O C N N �_ 7 N c � V W N v 00 fD 0 n n C C �• rt O D. 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O fi m D m u 3 N TA, o �o � m fD N m U D m (n n . H 0 N L. w fu CT c Oi a Oo CM v o m N ao N c d .2 o, V1 Z D = m � 3 M 3 o 3 fu OO (A °' .' a 7 a �. a N v fDa 3 v w '0 O! N N a n ,� O 3 m N n a o0 3 3 < a N 3 ° n O v s m � m L 0 O -� 'a I m , D 3. fD m of p 3 ^ G S 70 D 3 C Ln T O a D > U T N a a S N N m 3 ID ? O o ° — ° o Cr n. n fD o 0 M Cr D A a N b • 9 n n ° < °- 3 F m N A n m � n o ` n m 0 � N o~ a Di 0 n o 3 n 3 r i m m D m u 3 N TA, o �o � m fD N m . D > U T O c O ID N CD o (D 3 m w o S (D< v o ° 3 m° m 'a ° 3 m o w a �' a m n o 3 m : na o m 3 ID ? O o ° — ° o ® c < N o v a 3 a m 3 n fD o 0 M Cr D A a N b • 9 n n ° < °- 3 m n m m n o ` n m 0 � N o~ a Di 0 n o 3 n 3 m \ d m ° 7 / 0 m E , Q ° k 2 § 0 k ƒ , E 2 o ` 0 § a '0 ° E} k 3 \ 2■ L « ; k 7 m M ; 7 2 o \ n 2 ' f - ] m J k $ \ E m » m k m m CL } CA E \ X w QrQ E ■ 0. & { K ° m § i _ n 0 ;rem No. � City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: September 23, 2011 Subject: September Director's Report The following is the Director's Report for September, 2011. 2011 Manufacturers Appreciation Event This year's Manufacturers Appreciation Event has been scheduled for Thursday, October 27 starting at 4:30 p.m. at the Holiday Inn and Suites. The format will be similar to last year's event and "Save the Date" postcards were mailed today. Building Permit Report The City issued building permits with a total valuation of $45,494,817 through August. This compares to a total valuation of $36,483,831 through August of 2010. The City issued commercial and industrial permits with a total valuation of $8,396,000 through August compared to a total valuation of $1,609,000 through August of 2010. The City has also issued permits for 84 single family homes through August with a total valuation of $25,857,000. This compares to 93 single family home permits through August of 2010 with a total valuation of $25,236,000. The average value of the single family permits issued to date in 2011 is $307,821 compared to an average value of $271,354 during the same period in 2010. Development Update Hosanna / Ebenezer Senior Housing Project: Sitework has begun for this 93 unit senior housing project. Krause - Anderson is the general contractor. A footings and foundation permit has been issued. This project obtained housing revenue bond financing from both the Dakota County and Scott County CDAs. Walmart Project: Sitework has also commenced for this 152,000 square foot Walmart store. The approved plan required a relocation and re- establishment of a drainage way / wetland on the site prior to mass grading of the entire site. Weis Builders is the contractor for this phase of the work. ImageTrend: Construction continues on the ImageTrend expansion located at 20855 Kensington Blvd. in the Fairfield Business Campus. This two -story addition is scheduled to be substantially completed by the end of the year. Goodwill: Construction is progressing on the 20,000 square foot new Goodwill store located on Kenrick Avenue adjacent to the Minnesota Tile building just west of the Comfort Inn Motel. Stonehenge Development is constructing this new store and will be leasing it to Goodwill. A copy of a recent article in the StarTribune on other Goodwill stores being developed in the metro area was included in your agenda materials. Foreclosure Update Attached is a copy of the July Foreclosure Update from the Dakota County CDA. There were 29 Sheriff Sales in Lakeville during the month of July. This brings the number of Sheriff Sales to 178 for the seven months of 2011. The total number of Sheriff Sales in 2010 was 317. ( m a E4 cn �O M W W c o G1 o '= t:7 d W W a a w CJ n n H �? 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A Cn O O O O C N cn O O O O O O C O 0 0 N 00 N N O O W J O V O UA A J C w 0 0 C O O O O C C O O O O O O O C O O O C C C 1 CI 0000 ICI C C ICI C C C C C C IOI O O C C C C C C C W 00 N J N cc 00 LA J O O O O gdbk t( ©ME CDA Dakota County OWN E RS H I P Community Development Agency COKAe&im 00*6660060009006906006 To: Dakota County Cities From: Lisa Henning Date: August 29, 2011 Re: Foreclosure Update Minnesota Mid -Year Foreclosure Report Released The Minnesota Home Ownership Center recently released the 2011 Semi - Annual Foreclosures in Minnesota: A Report Based on County Sheriffs Sale Data. From January through June of this year, 11,257 foreclosures took place statewide. The mid -year number decreased 14 percent compared to the same timeframe in 2010. The report is produced in partnership with the Greater Minnesota Housing Fund, Minnesota Housing and the Family Housing Fund, with research provided by HousingLink. The report can be viewed in its entirety by visiting the Minnesota Home Ownership Center's website at http: / /www.hocmn.ou /Stock/Editor /File /REPORTS /201 I % 20SemiAnnual %20Foreclosures%20ln %20MN.pdf HUD Emergency Homeowner Loan Program (EHLP) Update The pre - application deadline for HUD's EHLP program has passed, and the next stage in the application process has begun. The CDA continues to participate in the next phase of administering EHLP. Housing Counselors have been contacting homeowners to fill out a full EHLP application. A counselor will work with the homeowner to get the all application forms and supporting documents together for continued eligibility review. EHLP is designed to provide mortgage payment relief to eligible homeowners who have experienced a drop in income from involuntary un- or underemployment. For more information, contact a member of the Housing Counseling team at 651- 675 -4555. A recent newspaper article regarding EHLP is included in this month's enews. ddbh H0ME CDA Dakota County OW N E R Community Development Agency am4c6m Q*******9******9****0* Dakota County Stats — July 201 1 • # of Sheriff Sales in July — 146 (compared to 216 in July 20 10) • Total Sheriff Sales for 2011 — 1,213 (compared to 1,280 Jan. July 20 10) • # of Notices of Pendency Filed in July — 192 • Total Notices of Pendency Filed in 2011 — 1,659 A Notice of Pendency is filed by a mortgage company's attorney as official notification that the foreclosure process has begun. Not all of these result in Sheriff Sales. Mapping Using Dakota County GIS http://gis.co.dakota.mn.us/website/dakotanetgis/ The Dakota County Office of GIS is updating the 2011 Foreclosures and Notice of Pendency layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel or Mary Hagerman with the Office of GIS at (952) 891 -7081. In The News Provided in this PDF file are a few notable foreclosure articles that were published in the last month. Among the points of interest: • An article detailing some of the aspects of EHLP. • A small group of unemployed homeowners may be able to miss up to a year of mortgage payments under a new initiative by the Obama administration. • "Robo- signing," when mortgage industry employees sign documents they haven't read and use fake signatures, continues to be a problem. If you have any concerns, please call me at (651) 675 -4467 or send me an email at Ihenning (&dakotacda.state.mn.us O N a 00 v1 ^ �A � !` Co N — 0� OD OD 1� N m M N N -- M — — N O N v V- ^ LO 00 %D I�, I� — N 'D F ^ — 'D 00 �r) v N CO O N H N V 110 %a Q V h N Z- -- 41 O N C. 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The Emergency Homeowners' Loan Program will provide up to $50,000 in interest -free, forgivable loans to borrowers who: -Had income declines of 15 percent or more due to unemployment, underemployment or illness. -Have not made a mortgage payment in three months and who have received a foreclosure notice. -Live in the mortgaged property. -Meet income requirements. Applicants may make no more than $75,000, or 120 percent of area median income, whichever is greater In the Twin Cities metro area, that's around $100,000 for a family of four. The national program is designed to bring selected homeowners current on their loans, and to assist with future mortgage payments over two years. The loan is forgivable for homeowners who stay in their homes five years beyond the program's two -year duration. Julie Gugin, director of the Minnesota Homeownership Center, which coordinates a network of foreclosure prevention counselors around the state, said two - thirds of homeowners who seek counseling are behind due to income or medical issues. "This program will offer an important lifeline to a large segment of homeowners who otherwise struggle to find options to stay in their homes," she said. One complaint of homeowners seeking loan modifications is that they're denied assistance because they don't make enough money to qualify. The time frame for joining the program is short; applications will be taken from Tuesday through July 22. An extensive application must be filled out, and eligible Print Powered B http: // www. startribune .com /templates /fdcp ?unique= 1309874001423 7/5/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /124984364.html Page 2 of 2 1 participants will be selected via lottery. Congress set aside $1 billion as part of the financial reform bill to help struggling homeowners in 32 states. Minnesotans will receive $55.8 million of that money for this program, which should reach 1,405 Minnesotans. Officials estimate the program will decrease the state's projected foreclosures this year by at least 5 percent. More than 100,000 Minnesotans lost their homes to foreclosure from 2007 through the first quarter of this year. For more information about eligibility, visit EHLPMinnesota.com or call the Minnesota Homeownership Center at 1- 866 - 462 -6466. Kara McGuire • 612 - 673 -7293 Print • . �► http:// www .startribune.com/templates /fdcp ?unique = 1309874001423 7/5/2011 Format Dynamics:: CleanPrint :: http: / /www. startribune .com /nation/125187054.html �Qi M. T W11MO Page 1 of 1 Unemployed homeowners win reprieve Article by: JIM PUZZANGHERA , Los Angeles Times Updated: July 7, 2011 - 7:24 PM Still scrambling to stabilize the struggling housing market, the Obama administration will allow some unemployed homeowners to miss a year of mortgage payments without threat of foreclosure while they try to find a new job. The expanded assistance -- triple the current limit of four months for those with government- insured mortgages -- could help "tens of thousands" of people keep their homes, Housing and Urban Development Secretary Shaun Donovan said. "Helping struggling borrowers avoid default is not only good for those borrowers, it is good for the economy." But Donovan cautioned that the move wasn't a "silver bullet." The new requirement for so- called forbearance comes on top of several initiatives the White House has launched since 2009 to try to stem the tide of foreclosures, which continue to drive down real estate prices. President Obama admitted this week that those efforts -- such as the much - maligned Home Affordable Modification Program, which offered incentives to banks to lower monthly payments for troubled borrowers -- haven't tamed the problem. Housing advocates and some lawmakers have pushed the administration to increase the amount of time unemployed homeowners would be allowed to skip payments. The White House agreed partly because 60 percent of people without jobs have been unemployed for more than three months, Donovan said. The administration's latest plan affects a small group of homeowners -- about 3,500 borrowers a month who default on loans backed by the Federal Housing Administration and a total of about 1 million people eligible for HAMP aid. But Donovan said he hoped that the new requirements would be adopted voluntarily by the mortgage industry. Print #;_ D ynamics http: /Iwww. startribune. com /templates /fdcp ?unique = 1310136648444 7/8/2011 Format Dynamics:: CleanPrint :: http:Hwww.twincities.com/ci Page 1 of 2 V11 'Bobo- signing' continues on mortgage documents By Michelle Conlin and Pallavi Gogoi Associated Press Updated: 07/18/2011 10:08:51 PM CDT Mortgage industry employees are still signing documents they haven't read and using fake signatures more than eight months after big banks and mortgage companies promised to stop the illegal practices that led to a nationwide halt of home foreclosures. County officials in at least three states say they have received thousands of mortgage documents with questionable signatures since fall. Lenders say they are working with regulators to fix the problem and cannot explain why the practice, known colloquially as "robo- signing," has continued. Last fall, the nation's largest banks and mortgage lenders, including JPMorgan Chase, Wells Fargo, Bank of America and an arm of Goldman Sachs, suspended foreclosures while they investigated how corners were cut to keep pace with the crush of foreclosure paperwork. Critics say the new findings point to a systemic problem with the paperwork involved in home mortgages and titles. And they say it shows that banks and mortgage processors haven't acted aggressively enough to put an end to widespread document fraud in the mortgage industry. spring of 2010. County officials say they believe Green hasn't worked in the industry since. Why her signature remains in use is not clear. "My office is a crime scene," said John O'Brien, the registrar of deeds in Essex County, which is north of Boston and includes the city of Salem. In Guilford County, N.C., the office that records deeds said it received 456 documents with suspect signatures from Oct. 1 through June 30. The documents - mortgage assignments and certificates of satisfaction - transfer loans from one bank to another or certify a loan has been paid off. Suspect signatures on the paperwork include 290 signed by Bryan Bly and 155 by Crystal Moore. In the mortgage investigations last fall, both admitted signing their names to mortgage documents without having read them. Neither was charged with a crime. The nation's foreclosure machine almost came to a standstill when the nation's largest banks suspended foreclosures last fall. Part of the problem, banks contended, was that foreclosures became so rampant in 2009 and 2010 that they were overwhelmed with paperwork. The banks reviewed thousands of foreclosure filings, and where they found problems, they submitted new paperwork to courts handling the cases, with signatures they said were valid. The banks slowly started to resume foreclosures this winter and spring. The 14 biggest U.S. banks reached a settlement with "Robo- signing is not even close to over," said Curtis Hertel, the recorder of deeds in Ingham County, M ich., which includes Lansing. "It's still an epidemic." In Essex County, Mass., the office that handles property deeds has received almost 1,300 documents since October with the signature of "Linda Green," but in different handwriting styles and with many different titles. Linda Green worked for a company called DocX that processed mortgage paperwork and was shut down in the Print Powered :! >M http: / /www.twincities.com/fdcp ?unique = 1311104731756 7/19/2011 Format Dynamics:: CleanPrint :: http://www.twincities.com/ci Page 2 of 2 TwinCitiesecom federal regulators in April in which they promised to clean up their mistakes and pay restitution to homeowners who had been wrongly foreclosed upon. The full amount of the settlement has not been determined. But it will not involve independent mortgage processing firms, the companies that some banks use to handle and file paperwork for mortgages. So far, no individuals, lenders or paperwork processors have been charged with a crime over the robo- signed signatures found on documents last year. someone buying a home and trying to obtain title insurance might be delayed or denied if robo- signed documents turn up in the property's history. That's because forged signatures call into question who owns mortgages and the properties they are attached to. "The banks have completely screwed up property records," said L. Randall Wray, an economics professor and senior scholar at the University of Missouri - Kansas City. Most of the tainted mortgage documents in question last fall were related to homes in foreclosure. But much of the suspect paperwork that has been filed since then is for refinancing or for new purchases by people who are in good standing in the eyes of the bank. None of the almost 1,300 suspect Linda Green - signed documents from O'Brien's office, for example, involve foreclosures. And Jeff Thigpen, the register of deeds in North Carolina's Guilford County, said fewer than 40 of the 456 suspect documents filed to his office since October involved foreclosures. Banks and their partner firms file mortgage documents with county deeds offices to prove that there are no liens on a property, that the bank owns a mortgage or that a bank filing for foreclosure has the authority to do so. The signature of a qualified bank or mortgage official on these legal documents is supposed to guarantee that this information is accurate. The paper trail ensures a legal chain of title on a property and has been the backbone of U.S. property ownership for more than 300 years. It is a federal crime to sign someone else's name to a legal document. It is also illegal to sign your name to an affidavit if you have not verified the information you're swearing to. Both are punishable by prison. The legal issues are grave, deeds officials across the country say. At worst, legal experts say, the document debacle has opened the property system to legal liability well beyond the nation's foreclosure crisis. So PrintPoweredBy Dynamic http: / /www.twincities.com/fdcp ?unique = 1311104731756 7/19/2011 MinnPost - Signs of a rebound in Minnesota manufacturing? Signs of a rebound in Minnesota manufacturing? By Brad Allen I Published Mon, Sep 19 2011 10 am Among the bright spots in last week's Minnesota unemployment report is the state's manufacturing sector, which gained 1,200 jobs. Currently, about 300,000 people work in Minnesota's manufacturing sector. But since the start of the Great Recession at the end of 2007, manufacturing employment here has fallen almost 13 percent -- 43,000 jobs lost. More than one -third of the total jobs lost in Minnesota during that time have come from the manufacturing sector. But all is not bad news. Minnesota has seen a pickup in manufacturing employment in recent months. Since a low point in January 2010, the sector has grown by more than 13,000 jobs. And just recently, a Minnesota manufacturing icon, Fairbault Woolen Mill, reopened its doors after a two -year hiatus. A comeback? Is manufacturing making a comeback? Vickie Parks, program manager at the Manufacturers Alliance a networking organization made up primarily of smaller Minnesota manufacturers, said several member companies are beginning to report strong revenue growth, as much as 30 percent. "Oh my gosh! They're just flying!" she exclaimed, reporting that sentiment is positive as members "are feeling better" about the economy. Some companies that had cut back on hours of production employees "are back to where they were before" the recession, she said. The rebound does not appear to be limited to a particular industry or segment, she added, but is seen across several sectors. She cited examples of growing companies making display shelving for Target Corp. as well as component suppliers for medical device giants Medtronic and St. Jude Medical. Parks said several are planning to add employees but face a challenge in finding qualified applicants. The Alliance website currently lists about four -dozen job openings around the state. Manufacturing sector wages average about $56,000 a year, nearly 20 percent higher than average wages of all workers in Minnesota, according to the Bureau of Labor Statistics. With the earlier job losses in the sector, almost $1.4 billion in annual wages have come out of Minnesota's economy as a result. At the same time, exports of Minnesota manufactured products have set records in recent quarters. The most recent data from the Minnesota Department of Employment and Economic Development showed that exports of agricultural, mining j and manufactured products from Minnesota continue to set records, growing 12 percent to $5.3 billion in 02. Minnesota's rate of export growth, however, has consistently lagged the overall growth rate of U.S. Page 1 of 3 http:// www.minnpost.com/bradallen/2011 /09/19 /31721 /signs_of a rebound in minnesot... 09/19/2011 MinnPost - Signs of a rebound in Minnesota manufacturing? exports. This quarter was no exception, with a national export growth rate of 18 percent, 6 points higher than Minnesota. Two recent national surveys reveal cautious optimism among manufacturing executives at both large and small firms, but with different takes on the U.S. economy and hiring plans. Accounting firm PWC which surveyed 60 senior executives at large U.S. -based manufacturers (average revenue of $3.4 billion) in a quarterly survey, found 90 percent expect revenue growth averaging 6.5 percent in the coming year. That's up from 73 percent of respondents a year ago who expected growth averaging 6 percent. The executives have mixed views of the overall U.S. economy, though, with 48 percent optimistic, 45 percent uncertain and 7 percent pessimistic. While their level of optimism has eroded since the end of last year, manufacturers' sentiment is 10 points higher than their take toward the global economy (38 percent optimistic, 55 percent uncertain and 7 percent pessimistic). Slightly more than half of the companies surveyed by PWC expect to hire additional workers in the coming year, but only modestly so, adding 0.3 percent to the total workforce. Biggest worry: energy prices Seventy percent say rising oil and energy prices are the biggest potential barriers to growth, while 60 percent also cite legislative /regulatory pressures and 53 percent taxation policy, all concerns that have increased from the first quarter survey. Forty percent cited "lack of demand" as a risk factor that may block growth, the lowest level over the past year. In a separate survey, 44 percent of smaller manufacturing company executives describe their business as "thriving and growing," g g g," up from only 9 percent in 2009 and 24 percent last year. The survey, by the accounting firm RSM McGladrey, reports that only 3 percent describe their business as "declining," compared with 39 percent at the depths of the recession in 2009 and 10 percent last year. Eighty percent of them expect U.S. sales to increase, and 70 percent expect foreign sales growth. Also, 56 percent expect to hire additional workers, increasing their workforce by an average of 7 percent in the coming year. This comes in spite of 60 percent reporting pessimism about the U.S. economy, up from 38 percent in the spring survey. On the global economy, 64 percent are pessimistic, up from 50 percent in spring. Major factors cited include the political impasse in Washington over the nation's fiscal and budget problems, rising commodity prices and concern over the European debt crisis. Only 28 percent are pessimistic about emerging markets, however. Like what you just read? support high - quality Journalism in Minnesota by becoming a member of MinnPost. Advertisement. 0 Comments: Page 2 of 3 http:// www.minnpost.com/bradallen/2011 /09/19 /31721 /signs_of a_rebound_in minnesot... 09/19/2011 Page 1 of 3 Olson, David From: Kienberger, Adam Sent: Wednesday, September 14, 2011 3:30 PM To: Dempsey, Frank; Kuennen, Allyn; Olson, David; Morey, Daryl Subject: Goodwill I thought you guys might like to see the coverage on Goodwill's growth in the Twin Cities: Goodwill's building spree extends to Twin Cities exurbs Posted: 5:19 pm Tue, September 13, 2011 By BRIAN JOHNSON Tags: Dick Grones Goodwill Herb Tousley Jen Helm Laura Moore Lisa Ritter You have successfully logged in. The future Goodwill store in Forest Lake is likely to be similar to this store under construction near Interstate 35 in Lakeville. (Staff photo: Bill Klotz) Bargain hunters, take note: Goodwill Easter Seals Minnesota is building yet another thrift store in the Twin Cities area. The nonprofit organization plans to break ground in the coming weeks on a $3.3 million store near Interstate 35 and 19 Street in Forest Lake, according to Minnetonka -based Oppidan Investment Co., the project's lead developer. Scheduled to open in March, the 20,600 - square -foot store will be the 26th Twin Cities retail outlet for Goodwill, which is dedicated to "eliminating barriers to opportunity and helping people in need reach their fullest potential through the power of work." Goodwill, which leases its retail space, has had quite a workload of its own in 2011. In February, 09/14/2011 Page 2 of 3 Goodwill opened a store in Maplewood, and it has stores under construction in Blaine, Lakeville and Champlin. Look for the building activity to continue. As reported by Finance & Commerce last spring, Goodwill is in the midst of five -year strategic plan that calls for opening two to four new stores a year in Minnesota. Goodwill spokeswoman Lisa Ritter said Goodwill typically works with brokers to identify a location, and the developer takes on the cost of building the new store or renovating an existing site. "All those costs are packaged in a lease," she said. "We don't pay anything up front." Laura Moore, a Victoria, Minn. -based real estate broker who works with Goodwill but was not part of the transaction for the Forest Lake project, said that plan is still on track, although she clarified that some of those stores may be relocations. Goodwill's space requirements for construction are about 2.5 acres of land and 20,000 square feet of building space, with another 600 square feet for a drive - through. Two - thirds of the space is dedicated to the sales floor. "They have it down to a perfect science," said Moore, who is with Moore & Co. Given Goodwill's requirements, construction is often more viable than trying to fit into an existing space, Moore noted. The typical construction cost is about $83 per square foot, and land costs vary depending on the location, she said. Herb Tousley, director of the real estate program at the University of St. Thomas in St. Paul, said Goodwill is an attractive tenant these days. In a challenging economy, more people are shopping at thrift stores, so Goodwill is trying to serve new areas and upgrade existing stores in the core cities, Tousley added. "Their stores seem to be doing better," he said. "Building owners are glad to have them. Maybe some time ago they weren't perceived as being a premium quality tenant, but these days they are." As Jen Helm, vice president with NorthMarq, a Bloomington -based provider of commercial real estate services, put it: "They pay the rent and bring in customers." Dick Grones, principal of Edina -based Cambridge Commercial Realty, said creditworthy organizations like Goodwill are able to scoop up quality space that has been vacated by other retailers. When it comes to new construction "they are getting good prices on land, competitive construction bids," he said. "And they are able to do it because all those organizations have good credit." From a cultural perspective, he said, it doesn't hurt that it's now hip for young people to buy previously owned garments, even as others are buying gently used clothing out of necessity. "They are getting the best of both worlds, in my view," Grones said. 09/14/2011 Page 3 of 3 Goodwill says it served 15,000 people in Minnesota last year, including 4,935 who received "employment- related services," such as training in construction, automotive, banking and retail work. More than 1 million clothing and household items were donated to Goodwill stores last year. Thrift store sales are the biggest source of revenue for Goodwill, which reported $38 million in fiscal year 2010 revenue, up from $33.4 million in 2009. Fendler Patterson Construction will build the store in Forest Lake, according to a news release from Oppidan. Fendler Patterson also worked with Oppidan on Goodwill stores in Minnetonka and Champlin. Oppidan, which has developed four Goodwill stores in the Twin Cities area, including the Forest Lake store, says the project will create 50 -plus construction jobs. This entry was posted on Tuesday, September 13th, 2011 at 5:19 pm and is filed under Business & Economy Construction & Development You can follow any responses to this entry through the RS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed. Adam Kienberger, Economic Development Specialist City of Lakeville 120195 Holyoke Avenue I Lakeville, MN 55044 Office: 952-985-4425 1 Fax: 952-985-4499 1 www.lakevillemn.gov The information contained in this transmission including any attached documentation may be privileged and confidential. It is intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copy of this communication is strictly prohibited. If you have received this communication in error, please notify the City of Lakeville immediately by replying to this email. 09/14/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /129878948.html r Page 1 of 3 State's private sector adds jobs Article by: , Star Tribune Updated: September 15, 2011 - 9:14 PM Minnesota's private sector employers added 5,800 jobs in August, a solid showing that comes at the same time about 22,600 government workers returned to work after the state's three -week shutdown in July. Economists said Thursday's job news was better than expected, especially when the state shutdown is factored out. They also noted that eight of the 12 job sectors posted gains for the month and that the year -over- year comparisons showed the addition of 44,200 jobs, or 1.7 percent growth. In another dose of good news, the Minnesota Department of Employment and Economic Development reported that initial unemployment claims in the state fell during August to 19,625, the lowest number in three years. "We've had four months of growth in employment," said Toby Madden, regional Minneapolis. "It's nice that it's positive across a broad range of industries. If you look at the job change over the year ... that tracks with our models. We expect 1.7 percent growth in employment for next year" as well. The August unemployment rate was unchanged from July at 7.2 percent. But labor economists called the August unemployment report "skewed." While the report included the return of the 22,600 state workers, the seasonally adjusted unemployment rate failed to fully reflect the change. People should shake out the anomalies from the state shutdown by examining results over time and how sectors are performing outside of government, Madden said. Steve Hine, director of the Minnesota Labor Market Information Office, explained that state jobless rates are now calculated using a new federal formula that strips out or "smooths" seasonal variations and one -time quirks, such as the shutdown. The new calculations "underestimated the impact of thousands of state employees returning to work en masse," said Hine. The unadjusted unemployment number was 6.7 Advertisement Print Powered By -D, "Dynamics http: / /www.startribune.com /templates /fdcp ?unique= 1316178404569 09/16/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /129878948.html • 1 � Page 2 of 3 percent for August, down from 7.0 percent in August 2010. Creighton University economist Ernie Goss, who tracks Midwest economies, said: "The economy is a bit stronger than what the [new] unemployment number would lead one to suspect. These are some one -time events and not likely to be repeated anytime soon." But Jeanne Boeh, chairwoman of the Economics Department for Augsburg College, said: "Even with this good news, there are 3.6 applicants for every open position, which is an improvement over the prior 6 or 7 figure. But this still indicates substantial angst for job seekers." Even with an official 7.2 percent unemployment rate, Minnesota is faring better than the nation, which posted a 9.1 p ercent August jobless rate and reported zero net job gains for the month. Construction jobs Minnesota's long- suffering construction industry added 1,400 jobs in August and 7,500 jobs in the last four months thanks to strong building growth. That's huge, officials said. "Construction has been steadily losing jobs for over five years now," said Hine. "But as of May we have started to turn the corner. For August, we are 71 jobs below where we were last August. And maybe for September we'll get the first over - the -year growth since March of 2006." Manufacturing added 1,200 last month, while professional and business services added just 700. The trade, transportation and utilities sector gained 4,100 workers, mostly in the non - durable wholesale trade area. Sectors losing jobs included leisure and hospitality, as the summer hiring season came to an end and Minnesotans pulled back on some restaurant, bar and golf outings as a result of the state shutdown. Leisure and hospitality gained 12,400 jobs for the year. For metropolitan areas, the Twin Cities saw jobs grow by only 1.5 percent for the year. Madden said he suspects that number would have been higher if not for the state shutdown. In contrast, Mankato had job gains of 3.7 percent; Rochester 2.7 percent, and Duluth 2.3 percent. Advertisement http: / /www.startribune.com/ templates /fdcp ?unique= 1316178404569 09/16/2011 Format Dynamics :: C1eanPrint :: http: / /www.startribune .com/business /129878948.html Page 3 of 3 � Separately Thursday, the U.S. Labor Department reported initial claims for unemployment were 428,000, an increase of 11,000 from the previous week's revised figure of 417,000. The four -week moving average was 419,500, an increase of 4,000 from the previous week's revised average of 415, 500. Dee DePass • 612 - 673 -7725 Advertisement Print Po By e' http: / /www.startribune.com /templates /fdcp ?unique= 1316178404569 09/16/2011 ormat Dynamics :: CleanPrint :: http:// www.startribune.com /locaUsou... StarTrimbune http://www.startribune.com/templates/fdcp?unique=1315926553693 Greater MSP aims to woo new business Article by: , Star Tribune Updated: September 10, 2011 - 5:39 PM The roster is already strong: High- tech jobs building aerospace equipment, a huge company focused on business information and research, and a fertilizer production outfit that nourishes crops around the globe. But the south metro area, like everyone else, is still looking to add some depth to its list of employers and jobs for local residents. And the area is turning to a new booster for help: Greater MSP, an economic development group formed this year to raise the profile of and attract businesses to the Twin Cities development agency, pitched in $100,000 to help launch Greater MSP. Burnsville and Eagan each contributed $25,000, and Rosemount added $10,000 to the effort. About 80 percent of the regional group's funding comes from the private sector. At a recent meeting in Eagan, scores of Dakota County officials and business owners pitched the south metro's charms and successes while also getting a peek at a possible return on their investment in Greater MSP. Michael Langley, CEO of the organization, said that there are already 42 projects -- discussions with local companies looking to expand or outsiders considering new locations -- in the works. "That list will grow to 150 to 200 over the next year," he said. "That's our bread and butter, to bring more opportunities to our local communities." metro area. "It will affect our region as we start to grow out of this economic doldrums that we find ourselves in," said Joe Harris, chairman of the Dakota County Board. "It behooves us to get together and work together." A new marketing campaign meant to solidify the regional identity will debut next month. Ruthe Batulis, president of the Dakota County Regional Chamber of Commerce, said that metrowide collaboration should yield better results than individual cities or Advertisement Print Powered By gt ' Fort�a namics )f2 Anzi ')mt 10.09 AM ormat Dynamics :: CleanPrint :: http:// www .startribune.com/local/sou... �ftl nt http: / /www.startribune.com /templates /fdcp ?unique = 1315926553693 chambers trying to woo companies. "We know that what we've done in the past is not a recipe for success," she said. "It's time to try the bold idea." "I'm not going to say we need low, low taxes. I'm just going to say we need to pay attention to that," King said with a nod to the need for strong schools and good services and amenities for employees. Still, within the regional framework, Eagan Mayor Mike Maguire said the Greater government officials and leaders wanted to MSP push is appealing because businesses make clear the qualities that make their and communities will have a central home turf south of the river stand out. clearinghouse of sorts for economic development questions. In presentations from leaders of Goodrich Sensors, Thomson Reuters and CF Industries, there was much praise for access to transportation -- by highway, by water or by air -- and appreciation for the good communication that exists between the public and private sectors. And, he added, it might help the Twin Cities metro area overcome a cultural roadblock, too. "We're Minnesotans," Maguire said. "We don't really talk about ourselves well. We have to." Burnsville Mayor Elizabeth Kautz, for example, cited the city's work in helping Goodrich secure tax incentives from the state to expand its facilities. "That was the exciting thing," said Brian Gora, an executive with Goodrich. "We could put it anywhere. There are lots of other places we could have gone." Thomson Reuters executive Rick King lauded the nuanced discussion of what attracts and keeps businesses. Katie Humphrey • 952 - 882 -9056 Advertisement Print Powered By EJ 11= 7rm -atDynamics- , f 7 All IM11 1 n.nn AAA Finance & Commerce > Print > Analysis: 8,500 apartment units proposed across Twin Cit... Page 1 of 3 Finance & Commerce : / /finance - commerce.com Analysis: 8,500 apartment units proposed across Twin Cities by Burl Gilyard Published: September 6th, 2011 Most of the activity in local development circles today boils down to one word: apartments. With the Twin Cities rental vacancy rate at the lowest point since the late 1990s, a host of developers are competing to build new apartment projects. Developers being developers, they believe they can out - hustle their competitors to land city approvals, secure financing and start construction. Most observers acknowledge that not every proposed project will be built. Finance & Commerce tallied approximately 8,500 market -rate, affordable and student apartments units that are either under construction or proposed across the Twin Cities. As the market heats up, skepticism is increasing about the depth of the demand. Developer Steve Minn, a principal with Minneapolis -based Lupe Development Partners, is particularly wary about the increasing volume of plans for luxury apartment buildings. He says there is a large "shadow market" of condo units that are not tracked as apartments in market studies but are being rented out. "I don't see it. There's just too much of a shadow market there already in both unsold and investor -owned condos. There's just not that much unsatisfied demand. I think the leasing activity in the condos is actually doing quite strongly right now," said Minn, who has developed condo and apartment projects. Brisk leasing in shadow market' Joe Grunnet, a broker and owner of the Minneapolis -based Downtown Resource Group, confirmed that his company is doing a brisk business renting condo units. "It is a true shadow market. Our average rent is about $1,640 a month, and we average about 33 deals every month. It's busy as hell out there right now," Grunnet said. "We're getting a nice influx of white - collar jobs. We're in the trenches. We don't listen to the media." Minneapolis -based Marquette Advisors reported local market -rate apartment vacancy at 2.4 percent at the end of June — the lowest vacancy rate in a decade. The report does not track owned units that are leased to renters. Brent Wittenberg, vice president with Marquette Advisors, said he is encouraged by the market, which has seen strong absorption of apartments. Wittenberg acknowledges that the number of proposed apartments in the Twin Cities can sound daunting. "Everybody's got a list that adds up to something like 7,000 units. The question is what's real and when does it become real," Wittenberg said. "I think what we will see is some very competitive submarkets. We can't build everything at once and all in the same space. These projects will take time. Some of them won't come to fruition." http: // finance - commerce. com /wp- contentlplugins /dmc_ sociable toolbarlwp- print.php ?p =... 09/06/2011 The 216 -unit Flux apartment project, which apparently is pet - friendly, is under construction in the Uptown area of Minneapolis. (Staff photo: Bill Klotz) Finance & Commerce > Print > Analysis: 8,500 apartment units proposed across Twin Cit... Page 2 of 3 From overbuilt to low vacancy In response to low vacancy rates of the late 1990s, developers built a spate of projects, many of them in the suburbs. In retrospect, the market became overbuilt. "We built significant numbers of new units heading into a recession," Wittenberg recalled. Local vacancy peaked at 7.6 percent in the fourth quarter of 2003. An analysis of local projects by Finance & Commerce tallied more than 1,300 apartments currently under construction including market -rate, student and affordable projects. That includes the 216 -unit Flux property in the Uptown area of Minneapolis, the 120 -unit Stadium Village Flats near the University of Minnesota campus and the 234 -unit Genesee project in Bloomington. Bigger plans loom on the horizon. The Chicago -based Magellan Development Group is proposing a 36- story, 355 -unit tower at the edge of downtown Minneapolis near Loring Park. Two Minneapolis developers, the Ryan Cos. and the Excelsior Group, are proposing a redevelopment of the former Jaguar car dealership in downtown Minneapolis calling for about 280 apartments on a site once envisioned as a luxury condo tower. Last year, a team of developers pitched plans to redevelop a site at 2225 Lake St. E. in Minneapolis. Plans called for 500 units of housing, including 350 market -rate apartments. The project has many partners and many moving pieces, but it's not clear where the plans stand. Mark Nordland, the development manager for the project, did not return a phone call seeking comment. Wittenberg said the pace of development is still slower than the pace at which people have been renting apartments. The second - quarter market report from Marquette Advisors reported that 3,460 apartments had been absorbed during the first six months of the year. (Absorption measures new and existing units that have been leased during the reporting period.) Marquette Advisors also pointed to state statistics, which showed the Twin Cities added 16,400 jobs in the first half of the year. Job growth is a key driver for apartment rentals. "If you look at the downtown [Minneapolis] market over the last 18 months, we've seen the absorption of 620 units, and that includes the addition of one project, Mill District City Apartments, during that time frame," Wittenberg said, noting that the new building has 175 apartments. "Demand should surpass the most recent [absorption] levels." Building in the 'burbs And while the bulk of apartment proposals have been in core urban areas, the Florida - based LeCesse Development Corp. has plans for a two - building, 440 -unit complex in Maple Grove called Skye at Arbor Lakes. "There's very little that's been developed in that area over the last several years. We see that as an opportunity to build a new high - quality development," said Tom Hayden, director of development with LeCesse Development. Hayden, who estimated the project budget at $70 million to $80 million, said the climate for financing projects is improving. "We're optimistic that it's going to come together and we'll be able to start in the spring," Hayden said. In Hopkins, the Beard Group is just starting construction on the 54 -unit, $13 million Marketplace & Main. http:/ /finance - commerce. com /wp- contentlplugins /dmc_ sociable _toolbarlwp - print.php ?p =... 09/06/2011 The 234 -unit Genesee roject is under construction in Bloomington. Staff photo: Bill Klotz) Finance & Commerce > Print > Analysis: 8,500 apartment units proposed across Twin Cit... Page 3 of 3 "It's a good market. We feel that Hopkins is centrally located. We felt like this is a good place to be. There hasn't been any new product since the 1970s," said Tom Gump, a principal with the 1 Hopkins -based Beard Group. Lending standards are tougher Lenders have been generally enthusiastic about apartment deals, but most observers agree that lending standards are tougher than they used to be. Eric Rogers, a senior vice president with the local office of Associated Bank, said his bank is i lending on apartment projects but is analyzing project locations and the overall capacity of the market. "We're probably looking at five or six projects right now. We're selectively active. We're going to do a few more apartment deals. We're just going to pick and choose the ones we do," Rogers said. Rogers said the bank wants to know that project "sponsors" — developers or other investors j behind a deal — are both seasoned and have resources to ride out unexpected tough times. "Right now we're increasing our focus on sponsorship. It's just managing the risk of overbuilding. We want to be with the people that 'get' the market and can support a project if occupancy starts to trend downward," Rogers said. Norm Bjorness is part of a development team that has been working to develop the 104 -unit I Oaks Station Place along the light rail transit line in Minneapolis. Bjorness said his group is ; working on the financing and hoping to start construction this year. But he said deals are more complicated. i "The whole system moves a lot slower than it used to. That's just the new order of things. You can move about half as fast as you used to be able to move," Bjorness said. Echos of the condo craze In some ways, the apartment fever seems to echo the condo development craze a few years ago. Mary Bujold, president and director of research for Minneapolis -based Maxfield Research, said I that 4,169 new condo units were completed in downtown Minneapolis from 2004 through 2007. "We started to really see a significant increase between 2003 and 2004," Bujold recalled of the condo boom years. "It started to cool in '07." But Bujold said she sees condos and apartments as two distinct markets and noted that it takes more time to fill condo buildings because selling is more involved than leasing. For an apartment mania skeptic like Minn, the bottom line is that he doesn't see enough economic expansion to support an endless supply of new apartments. I "We are not adding jobs, we are not creating new employment opportunities and we are not expanding the economy in such a way that additional high -end living spaces are in adequate parallel with the demand that is there," Minn said. Apartment Tracker F &C has launched an online Apartment Tracker, which will be updated frequently here s I t Complete URL: http:// finance - commerce.com /2011 /09 /analysis- 8500 - apartment- units - proposed- across -twin- cities/ http: / /finance- commerce. com /wp- contentlplugins /dmc_ sociable toolbar /wp- print.php ?p =... 09/06/2011 Format Dynamics :: C1eanPrint :: http: / /www.startribune.com/local /minneapolis /1285699... Pagel of 3 �fti �r Continued: Pledges of job growth fall short at Coloplast Article by: , Star Tribune Last update: August 29, 2011 - 12:16 AM Delivering his State of the City speech in 2009, Minneapolis Mayor R.T. Rybak stood in the gleaming North Side headquarters of Coloplast and promised that this city - supported private business would pay off in jobs for Minneapolis. Rybak said the complex overlooking the Mississippi River would hold 500 corporate jobs, and the Danish medical products company would hire city residents, with a hefty share from the North Side. Despite loans and tax relief from the city and state, the company has fallen short of the mayor's promises. Its headquarters workforce is less than half of what was projected, and that number is even fewer than the company it replaced on the site. Coloplast last week blamed the employment numbers on the worsening economy, but it also has been shipping manufacturing jobs overseas. City leaders and staffers who supported the project say they expect the company to rebound and boost its hiring again. City Council President Barb Johnson said the poor economy means that spending has ebbed on some of the more elective health devices that the company makes. Coloplast makes products ranging from catheters to continence products to penile implants. "It'll come back," Johnson said of the company. Asked whether the city's investment was worth it, she responded: "Look at that stretch of the riverfront and how that development has changed things." In 2006, Coloplast bought the urology division of Mentor Corp., the site's previous occupant, and then built a new $39 million facility on West River Road. The city provided a $2.94 million subsidy through tax - increment financing, which allows a company to divert much of its property -tax payments to paying off eligible development expenses. Overall public aid approached $4 million. Then -Gov. Tim Pawlenty called the corporate move here "an important and exciting Advertisement http: / /www.startribune.com /templates /fdcp ?unique = 1314622954400 08/29/2011 Format Dynamics :: CleanPrint :: http: / /www.startribune.com /local /minneapolis /1285699 s Page 2 of 3 development." Besides the city's tax - increment financing and the job training and $500,000 in forgivable state loans, the state and the Metropolitan Council supplied more than $900,000 for site cleanup. While some council members had criticized past subsidies, such as the about $60 million package awarded to Target for its downtown store and office tower, the City Council greeted Coloplast with enthusiasm in approving the tax - increment help. Rybak was a critic of corporate development subsidies during his first race for mayor in 2001. But by 2009, he saw Coloplast as a success story. "There is no better illustration of how we are reinventing ourselves than the building we are in today," the mayor said then. The company's headquarters did triple the tax value of its property, but under the terms of the deal, its property taxes can't pay for more firefighters or police or street paving until it compensates for $2.94 million of its investment. Earlier this year, Coloplast repaid the state, with interest, two forgivable loans totalling $500,000 from the Minnesota Investment Fund. Rather than adding the required 200 jobs at its West River Road facility, employment there dropped from 381 workers to 287, according to the company. That's now fallen to 225 workers. The company also is short of the targets it agreed to for hiring Minneapolis residents. According to information it supplied the city, Coloplast has hired just 54 of the 100 city residents it agreed to hire at its headquarters. It also has hired only 16 of the 30 north Minneapolis residents it said it would hire. The company has seven years to do so, but if it doesn't meet those targets two years from now, it faces a penalty of up to $600,000. "They have a good chance of reaching their targets," said Mike Christenson, the city's development and planning director. "The city will continue to help as requested." Coloplast said last week that its employment agreements with the state and city "were developed before the international financial crisis and subsequent economic downturn." Peter Fusager, a vice president for finance, said in a statement that the firm was forthright in telling the city that it wouldn't meet the state loan's job requirement. Advertisement Print Powered http: / /www.startribune.com /templates /fdcp ?unique= 1314622954400 08/29/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune.com /local /minneapolis /1285699... Page 3 of 3 6�MI91011 One method for trying to meet the target appear to be shrinking, affecting the was the company's participation in a state- employment prospects of entry-level funded job skills partnership program, workers from the North Side. "Much of our U. which Rybak said meant that "Coloplast is S. -based manufacturing will go to China," now a successful avenue for local residents the manager told the state last year. The to become employed at one of the most company said last week that it is also successful medical device companies in the sending jobs to Hungary and Denmark. world." But only 15 of the 69 workers who completed the program run by a North Side nonprofit were hired by Coloplast, according to the state. Steve Brandt • 612 - 673 -4438 "All of the graduates that we hired started out strong, but could not meet our attendance rules," a company training manager noted in a final evaluation of the effort. During construction, the firm temporarily moved about 100 manufacturing jobs to Vadnais Heights. Coloplast said some have returned to the city but didn't disclose how many. Although the company once spoke of expanding its West River Road campus in a second phase of construction to accommodate manufacturing operations, land records indicate it owns no expansion space. Manufacturing jobs for Coloplast here Advertisement http: / /www.startribune.com /templates /fdcp ?unique= 1314622954400 08/29/2011 Format Dynamics:: C1eanPrint :: http:// www. startribune .com /business /128510188.html Page 1 of 2 • HP's CEO follows IBM footsteps, but investors fear to tread Article by: THE ECONOMIST Updated: August 28, 2011 - 9:55 PM When the board of HP, the world's largest computer maker, unveiled plans to restructure, it expected the company's shares to suffer, but not to crash by 20 percent. HP's bosses thought investors would love their plan to spin off the firm's low- margin personal computer business, but be wary of their plan to buy Autonomy, a British software maker, for a handsome $10.3 billion. In fact, they hated both ideas. On Aug. 19, the day after the announcement, they wiped $12 billion off HP's market value. One problem was that the announcement left unclear what HP wanted to do with its PC unit and why exactly it intends to pay so much for Autonomy. Another factor was that many of the firm's shareholders are short- termists, who were scared away by lowered revenue and profit forecasts. But the big problem is that Leo Apotheker, HP's newish boss, is taking a huge gamble. He is trying to follow the example of IBM, by reducing HP's dependence on hardware and pushing up into software and services. To grasp what HP has in mind, one has to understand the two main currents in the information technology industry. First, nearly any new technology quickly becomes a commodity that is easily copied and hence not very profitable. This is why IT firms are always trying to move "up the stack" into software and services, where margins are higher. Second, the biggest IT firms typically control what is known as a "platform ": a digital foundation on which others build their products, such as Microsoft's Windows. This allows them to capture a disproportionate share of the industry's profits. HP seems to have ignored both currents, at least in the past decade. Carly Fiorina, its boss from 1999 to 2005, merged with Compaq, another computer maker, in a deal worth $25 billion. Mark Hurd, her successor, cut costs but was ousted in 2010 after a dust -up over sex and expenses before he could fix the firm's strategy. That job now falls to Apotheker. The firm's PC business is the world's biggest, but it is not as profitable as HP's other units. What is Advertisement e� Print powered By ijb Dyna http: // www .startribune.com /templates /fdcp ?unique = 1314623343650 08/29/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /128510188.html Pin I JI! IF . 7% Page 2 of 2 more, most buyers of HP's machines are consumers, whose demands shift faster and more whimsically than those of corporate customers. So HP intends to turn its PC business into a separate unit and then spin it off. Buying Autonomy also helps HP to move onto higher- margin terrain: The British firm's operating margins exceed 40 percent. But the main reason HP paid a 64 percent premium for its shares seems to be that it believes that Autonomy's technology could be turned into a platform to help companies make sense of their ever - growing pile of data. This includes not only "structured" data (payroll records, sales figures), but also the "unstructured" kind (documents, e- mail), which now makes up more than 80 percent of the information that flows through a typical company. Such a platform would allow firms to do some nifty things. A retailer, for instance, might decide how much beer to stock based not just on previous sales records, but also on weather forecasts, party chatter on social media and schedules for sports matches. All this sounds sensible. But establishing a new platform and ultimately becoming a firm that looks much like IBM is a tall order. Many other firms are also jostling to become the main interpreter of corporate data. To reach its goal of having software generate 8 to 9 percent of its revenue by 2015, up from less than 3 percent today, HP will probably have to make further acquisitions. And its services business is mainly about keeping IT systems running, not about helping firms reinvent themselves (as IBM does). Given the difficulties, it is riot surprising that many shareholders have bolted. But HP and its new boss should not be faulted for trying. They have little alternative, if they wish to avoid becoming a collection of commodity businesses. "Technology is a brutal business," says Apotheker. "If you don't innovate and reinvent yourself, you will become obsolete." Advertisement Print Powered By t r, aB�tynarnics http: / /www.startribune.com /templates /fdcp ?unique= 1314623343650 08/29/2011