HomeMy WebLinkAbout10-25-11City of Lakeville
Economic Development Commission
Regular Meeting
Agenda
Tuesday, October 25, 2011, 4:30 p.m.
City Hall, 20195 Holyoke Avenue
Lakeville, MN
Call meeting to order
2. Approve September 27, 2011 meeting minutes
3. Discuss Office Park District (OP) Zoning Changes
4. Update on Business Marketing Strategy Project
(To be presented at the meeting)
5. Review of Presentation to 360 Communities by Mark Jacobs of the Dakota
Scott Workforce Investment Board
6. Director's Report
7. Adjourn
Attachments:
September, 2011 Building Permit Report
August, 2011 Foreclosure Update
"New image for the Twin Cities: Prosper', StarTribune.com, 10/11/2011
"Prior Lake swallows hard, grants tax break ", StarTribune.com, 9/27/11
"Baby steps for a recovery in Twin cities retail ", Finance - Commerce.com, 10/18/11
City of Lakeville
Economic Development Commission
Meeting Minutes
September 27, 2011
Marion Conference Room, City Hall
Members Present: Comms. Matasosky, Brantly, Starfield, Vlasak, Schubert, 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, Tushie.
Others Present: David Olson, Community & Economic Development Director; Adam
Kienberger, Economic Development Specialist; Allyn Kuennen, Associate Planner.
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 August 30, 2011 Meeting Minutes
Motion 12.11 Comms. Starfield /Emond moved to approve the minutes of the
August 30, 2011 meeting as presented. Motion carried
unanimously.
3. Update on Business Marketing Strategy Project
Mr. Kienberger provided an update to the EDC on the Business Marketing Strategy.
He noted that the consultants from Arnett Muldrow and Associates would be in town
on October 3 -5 to conduct research and do a photo shoot of the community. Staff is
working with the Chamber of Commerce to coordinate focus group sessions and
compile a list of business interviews for the consultants to meet with during their
visit.
4. Development Forum Input Analysis
Mr. Mielke reviewed the EDC memo summarizing the development forum comments
and staff analysis. He noted that 143 businesses, developers, and contractors were
surveyed during the process to solicit feedback on the development process in
Lakeville.
Mr. Mielke added that the analysis is being presented to the Planning Commission,
EDC, Parks, Recreation, and Natural Resources Committee, and City Council to
Economic Development Commission
Meeting Minutes
September 27, 2011
discuss how to better improve the development process and opportunities, based
upon the input received during the development forum.
The EDC discussed how priorities could be established from the results of the
development forum. Suggestions included surveying the developers to help set
priorities, querying the listsery to establish a "top 5 ", and identifying recurring
concerns within the existing survey results.
Mr. Mielke concluded that the process will continue to evolve as potential policy and
process changes are identified.
5. Review and Discussion of Greater MSP Membershiip in 2012
Mr. Olson reviewed the EDC memo outlining a presentation ; Greater MSP gave to
the City Council at their last work session. Several EDC members were in
attendance at the work session as well.
Comm. Longie noted that the focus seemed to be on attracting large companies and
wanted to know what the City of Lakeville would get from becoming a member.
Comm. Brantly stated that the Twih:Cities often don't get a shot at some of the large
companies because we're not on their radar screen. He added that we should be a
part of the process and be a leader for the organization.
Mr. Olson noted that Scott County was paying the membership dues for its cities.
Comm. Schubert added that there 'doesn't appear to be any advocacy for
businesses with-the State.
Chair Matasosky stated that there is a lack of advocacy but lots of data compilation
by the group. 1Ne are-Just starting our own marketing process and get that taken
care of first before considering becoming an investor in Greater MSP. He added
that there doesn't appear to be enough "bang for the buck" right now.
Comm. Longie added that the State Chamber can continue its advocacy role for
business.:
Mr. Olson mentioned that the investment cost of $25,000 is quite significant, but the
regional concept - makes sense.
Comm. Starfield stated that because the $25,000 would be an annual due, we
should wait and re- evaluate the investment next year.
Chair Matasosky suggested that the City continue to focus and invest in its own
marketing message for now. He further suggested sending Greater MSP a letter
supporting their work and mention that we will re- evaluate becoming an investor next
year.
2
Economic Development Commission
Meeting Minutes
September 27, 2011
Motion 13.11 Comms. Matasosky /Starfield moved to propose sending Greater
MSP a letter supporting their work and re- evaluate investing in
them next year. Motion carried unanimously.
6. Director's Report
Mr. Olson reviewed the Director's Report. Minnesota Manufacturing Week is
October 24 -28. Lakeville will be holding its annual Manufacturing Reception on
Thursday, October 27 at the Holiday Inn & Suites.
7. Adjourn
The meeting was adjourned at 5:50 p.m.
Respectfully submitted by: Attested to:
Adam Kienberger, Recording Secretary R.J. Brantly, Secretary
3
Lei No.
Lcr�il('e
Memorandum
To: Economic Development Commission
From: Daryl Morey, Planning Director
Date: October 20, 2011
City of Lakeville
Planning Department
Subject: Packet Material for October 25, 2011 EDC Meeting
Agenda Item: 0 -P, Office Park District Uses
Attached please find a memo from planning consultant Daniel Licht of TPC regarding the
allowance of manufacturing uses in the O -P, Office Park District. Manufacturing was
removed as an allowed conditional use in the OP District with the 2010 Zoning Ordinance
update. The TPC memo provides background from the 2008 Comprehensive Plan that
preceded the 2010 Zoning Ordinance update. The TPC memo also provides examples of
how other metro area cities regulate manufacturing uses in similar zoning districts. Finally,
the TPC memo proposes three options for consideration with respect to the allowance of
manufacturing in the OP District.
This issue was previously discussed at the January 25 and August 30, 2011 EDC meetings.
The August 30, 2011 EDC meeting minutes are attached for your reference. I will be
present at the October 25, 2011 EDC meeting to answer questions related to the information
and options presented in the TPC memo.
Action Requested Staff is requesting feedback from the EDC on the three options
proposed for manufacturing in the OP District for discussion with the Planning Commission
at a future work session.
Attachments
October 18, 2011 TPC memo
August 30, 2011 EDC meeting minutes
(misc- edcmemo)
TPC 3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231.5840
Facsimile: 763.427.0520
TPQPPlanningCo.com
MEMORANDUM
TO: Daryl Morey
FROM: Daniel Licht, AICP
DATE: 18 October 2011
RE: Lakeville — Zoning Ordinance; O -P District Uses
TPC FILE: 101.01
BACKGROUND
Our office was directed to research provisions to allow for manufacturing uses with the
O -P, Office Park District. The O -P Zoning District was established as part of the 2010
Zoning Ordinance update in effect combining the previous C -W, Commercial
Warehouse and CC, Commercial Campus Districts. The O -P District as adopted does
not allow for manufacturing uses.
ANALYSIS
Comprehensive Plan. The 2008 Comprehensive Land Use Plan includes the following
language regarding the Office land use category as shown on the Land Use Plan Map:
Office Park
The Office Park land use category is intended to establish locations within
Lakeville for professional office complexes, corporate office buildings, conference
centers and research and development facilities in an environment with high
aesthetic qualities and amenities. Retail sales and services, warehousing and
manufacturing uses are to be allowed on a limited scale. The Fairfield Business
Campus is an example of this land use having an attractive working environment
by integrating a high quality site design with a natural setting. The establishment
of Office Park locations as a long -term development goal is intended to respond
to the following:
Construction of the I- 351CSAH 70 interchange improves access to
regional transportation corridors for future office park uses.
■ Construction of the Elko -New Market regional sewer interceptor allows
advancement ofMUSA to areas surrounding the I- 351CSAH 70
interchange.
■ Between 1990 and 2000, the majority of Lakeville residents changed from
being employed in labor to professional occupations according to US
Census Data. Establishment of office park uses expands the opportunity
to live and work in Lakeville.
■ In 2000, a majority of Lakeville residents commuted more than 20 minutes
to work suggesting employment locations outside of the City. Providing
for office park uses in Lakeville is an opportunity to reduce impact on
local and regional transportation.
■ Daytime employment within Lakeville is critical for market support of
existing and planned commercial areas. The Metropolitan Council
estimates that Office Park uses create approximately twice as many
employees as Light Industrial or Industrial per 1, 000 square feet of
building area.
A Community and Economic Development Department analysis
comparing development in Fairfield Business Campus and Airlake
Industrial Park indicates that the office park uses have an estimated
market value per square foot three times greater than an Industrial use.
This designation incorporates the previous land use designations of Office Park/Business
Campus and Commercial /Industrial into a single category that will require modification
to the existing C- W, Commercial Warehousing District and CC, Corporate Campus
District established by Zoning Ordinance in order to be implemented. The performance
standards to be developed for the Office Park land use category will be guided by the
following recommendations:
■ Development is to be integrated with the natural conditions of a site to preserve
slopes, trees, wetlands.
■ Site designs will limit building coverage and impervious surface to promote green
space and include high amenity landscaping. Screening and buffer yards will be
required where the Office Park use abuts residential areas.
■ All buildings are to be professionally designed to display a high degree of
aesthetic quality utilizing only face brick, aggregate, stone or other masonry
exterior materials or those of comparable quality.
■ Access to office park uses is to accommodate all modes of vehicular, bicycle and
pedestrian transportation with allowed semi -truck traffic segregated from other
forms.
K
Office park land uses may include limited retail sales and service uses that will be
complementary to the primarily office environment.
Warehousing will be allowed to the extent that it is accessory to a primary
business function and does not impact the surrounding area in terms of truck
traffic generation or noise from loading areas.
The Comprehensive Plan text in the first paragraph does make mention of allowing
manufacturing uses on a limited scale. As such, it is consistent with the
Comprehensive Plan for the Economic Development Commission (EDC) and Planning
Commission to evaluate if manufacturing uses should be allowed and under what
circumstances.
Survey. A number of Twin Cities communities were surveyed to determine how
manufacturing uses are allowed within office park type zoning districts:
■ Apple Valley. The Apple Valley Zoning Ordinance establishes the Businesses
Park District to provide for and combine office, corporate headquarters, research,
light assembly, commercial recreation and storage within a building shell. Light
manufacturing contained entirely within the principal building is allowed as a
conditional use.
■ Bloomington. The City of Bloomington has an IP, Industrial Park District with
uses that mirror those allowed in the O -P District but with a more industrial
orientation that would be similar to that of Lakeville's previous C -W District.
Bloomington allows manufacturing within the IP District as a permitted use.
■ Brooklyn Park. Brooklyn Park has a BP, Business Park District that allows
manufacturing as a permitted use. However, manufacture of heavy equipment
and vehicles is not permitted as a specifically defined land use allowed only in
the City's 1 -1 District.
Burnsville. The Burnsville Zoning Ordinance establishes an 1 -3, Office and
Industrial Park District to provide for "establishment of warehouse, light
manufacturing alongside a larger office type development. The city's objective for
this district is to attract high quality industrial development that will provide higher
income employment and provide an opportunity for creation and expansion of
employment centers, business centers, corporate headquarters and a diverse tax
base." Listed as permitted uses are 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. The 1 -3 District is designated on
the Zoning Map along both sides of CSAH 42 west of County Road 13 off of the
1 -35W corridor.
3
Eagan. Eagan has established two zoning districts similar to the intent of the O-
P District. The RD, Research and Development District for professional
research and development and limited industrial structures and operations,
including light manufacturing as a permitted use provided that the business does
not generate smoke, dust, odor, fumes or noise. The second district is the BP
Business Park District to accommodate development of low intensity office, light
industrial and supporting commercial service uses. Manufacturing (not defined)
is not an allowed use in the BP District but processing, packaging, cleaning,
storage, assembling, servicing, repair or testing of materials, goods or products,
when wholly contained within a building are listed as permitted uses.
■ Maple Grove. Maple Grove has established one business zoning district and
one industrial district that does not provide a comparable separation of land uses
as provided for by the Lakeville Zoning Ordinance.
■ Plymouth. The Zoning Ordinance does not define manufacturing as a land use.
Plymouth has a B -C, Business Campus District similar in intent to the O -P
District. Manufacturing is allowed as a conditional use provided that it is
accessory to another allowed use (limited to 40% of principal building area) and
outdoor storage is prohibited.
Woodbury. The Woodbury Zoning Ordinance establishes the B -1, Office Park
District to promote the development of well- designed and attractive businesses
such as corporate offices, professional offices, clinics and other similar uses
serving local or regional needs in areas in proximity to regional transportation
corridors, which does not allow for manufacturing uses. Woodbury also has a
BC, Business Campus District to reserve larger areas for multi -use buildings,
offices, wholesale showrooms, light manufacturing, research and development,
training, limited retail uses and uses accessory to conducting business within a
coordinated, well- defined campus environment and listed as "places to work" on
the comprehensive plan. Manufacturing, compounding, assembly, packaging
and indoor storage of products and materials is listed as a permitted use in the
BC District.
O -P District. In consideration of Lakeville's economic development goals and the
direction established by the Comprehensive Plan, as well as the allowances of other
cities, the following options may be considered regarding manufacturing in the O -P
District:
■ Light manufacturing that does not generate smoke, dust, odor, fumes or noise is
allowed as a permitted use if less than 50% of the principal building floor area or
as a conditional use if greater than 50% of the principal building floor area, both
of which would be subject to the following performance standards:
0
o Compliance with exterior building materials and landscaping required in
the O -P District which are similar to that required of retail, office or service
commercial uses than industrial uses as the O -P District is established as
a "commercial' district.
o Prohibition of outdoor storage.
o The proposed use is not a waste facility.
■ Manufacturing is allowed as a conditional use along with compounding,
assembly, or packaging of products and materials under Section 11 -75 -713
(previous ordinance).
■ No manufacturing is allowed in the OP District (current ordinance).
CONCLUSION
The information outlined herein is provided for review and discussion by the Economic
Development Commission and Planning Commission as to possible recommendations
to the City Council.
5
Economic Development Commission
Meeting Minutes
August 30, 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 entirely within 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% of the gross floor area of the building.
• Offices with attached manufacturing or warehouse combinations wherein
manufacturing or warehouse space shall not exceed 90% of the floor area
per occupant. Office space shall be placed in a location nearest to the
customer entrance.
Vice Chair Tushie noted that he felt manufacturing should be included as a
conditional use within the OP district, but should be a function in addition to an office
use.
Chair Matasosky suggested not 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
ire J
a.. r No.
City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission
From: David L. Olson, Community & Economic Development Director 9V
Copy: Steven Mielke, City Administrator
Adam Kienberger, Economic Development Specialist
Date: October 20, 2011
Subject: Employment Information Presentation
Attached is a presentation that was made my Mark Jacobs of the Dakota Scott
Workforce Investment Board to a local group of community representatives on
September 21 that serve on a task force organized by 360 Communities. Several
EDC members are members of this group and have seen the presentation. I felt it
contains a wealth of information would be of benefit to all members of the EDC.
Staff will review this presentation with the EDC at Tuesday's meeting.
Minnesota,
Dakota County and
Lakeville Info
Sept. 21 Presentation to 360 Communities
Lakeville, MN
State Trends, July 2011
• MN employers cut 19,800 jobs in July. ( *28,000 jobs "lost" in government sector,
due to the shutdown.)
• MN gained 13,380 jobs over the year, a growth of 0.5 %.
❖ The private sector has added nearly 40,000 jobs.
In addition to Government, over - the -year job losses in Construction (- 2,700),
Other Services (- 1,300), and Information ( -900).
Over- the -year job gains in Leisure and Hospitality ( +14,400), Education and
Health Services ( +12,900), and Professional and Business Services ( +7,800).
• Unemployment rate rose to 7.2% in July. Laid -off workers awaiting recall are
considered unemployed, by definition.
• For the first time ever, the state's labor force exceeded 3 million, on an
unadjusted basis.
Source: MN Dept of Employment & Economic Development
Employment in Dakota County
In 2010:
• There were 9,452 private sector firms and 148,130 private sector
employees in Dakota County.
• Largest employing industry sectors in Dakota County are retail
trade (20,900), manufacturing (17,730), health care and social
assistance (17,400), and accommodation and food services
(13,720).
• The manufacturing and health care sectors account for
approximately 24% of employment in Dakota County.
• Employment in Dakota County decreased 4.2 %, or 6,570 jobs
between 2008 and 2010.
Source: MN Dept of Employment & Economic Development
Lakeville Economic Profile
2010
• 1,039 establishments
• 11,376 jobs
• $411 million paid in total wages
• $694 average weekly wage
2008
• 1,135 establishments
• 11,868 jobs
• $428 million paid in total wages
• $694 average weekly wage
2000
• 778 establishments
• 9,117 jobs
• $300 million paid in total wages
• $633 average weekly wage
Data are private sector.
Source: MN Dept of Employment & Economic Development
Lakeville Employment by Sector
Largest employing sectors (2010)
• Manufacturing —1,968 jobs (17.3%
of total jobs in Lakeville)
• Retail trade —1,862 jobs (16.2 %)
• Administrative and support
services -1,350 jobs (11.9 %)
• Accommodation and food services
—1,304 jobs (11.5 %)
• Health care and social assistance —
866 jobs (7.6 %)
• Transportation and warehousing -
617 jobs (5.4 %)
Growing industries (2008 -10)
• Administrative and support services —127
jobs
• Arts, entertainment and recreation — 65
jobs
• Management of companies— 63 jobs
• Other services — 31 jobs
Declining industries (2008 -10)
• Construction — 360 jobs
• Manufacturing -146 jobs
• Health care and social assistance — 83 jobs
Retail trade — 51 jobs
Data are private sector.
Source: MN Dept of Employment & Economic Development
Unemployment
U.S. and Minnesota Unemployment
13.0
U.S. (July -11) 9.1°
100 Minnesota (July -11) 7.2" -
90 —
so
o'
Y n
C 6 ..
5.0
10
4° 4 4° 4
- —- q ti• m s' S q i tz q i �, F i� o +� q +' 'L n 'e $ o m �' q % gy m
Source: Bureau of Labor Statistics & MN Dept of Employment & Economic
Development
What do
Unemployment Rates Measure?
• The unused and available resources in the labor force — in this case,
people who are available to work and actively seeking work.
• Unemployment includes laid off workers awaiting recall.
• Unemployment rates do not include people who are not engaged
in job- seeking behavior
• Discouraged job seekers
• Individuals with a temporary barrier (such as illness, no
transportation or child care)
• Unemployment rates are measured through household surveys and
is not a measure of how many people are receiving unemployment
insurance.
Local Unemployment Rates
• Dakota County's unemployment rate was 6.5% in August
2011.
❖ By comparison, Minnesota's unemployment rate (not
seasonally adjusted) was 6.7 %.
• There were 15,198 unemployed residents of Dakota County
available to work and actively seeking employment.
• The city of Lakeville's unemployment rate was 6.0% in
August 2011, with 1,893 unemployed residents.
• There are approximately 5 unemployed workers for every 1
job opening in the Twin Cities region.
http : / /www.positivelyminnesota.com/ apps /imi /laus /detaii.aspx ?izeog= 2705037120 &adiust =0 &graph =l - Lakeville
Source: MN Dept of Employment & Economic Development
Historical
Unemployment Rates
U.S. 5.1% 4.6%
9.6%
Minnesota 4.2% 4.6%
7.3%
Dakota County 3.7% 4.9%
7.0%
Lakeville 2.9% 3.8%
6.5%
Minnesota
• Lowest monthly unemployment rate: 2.8% in January 2000
• Highest monthly unemployment rate: 8.4% in June 2009
Dakota County
• Lowest monthly unemployment rate: 2.2% in December 2000
• Highest monthly unemployment rate: 8.0% in June 2009
Source: MN Dept of Employment & Economic Development
Where are the jobs now?
120,000 7 140,000
Number ofJ06 Vacancies
100,000 l — Number of Unemploved 120,000
100,000
80,000
c C
80,000 m
i 60,000 3
0 60,000 c
40,000 ro
40,000 0-
d I �
2 20,000 al. 20,000
0 a 0
A N A N A N A N A N A N A N A N A N A N A
N N N N N N N N N N N N N N N N N N N N N
O G O O G O O O d O O O O O 0 O O O O O O
O O O O O O G O O O O d O 0 0 d 0 0
O 00 co I 10 O O
Source: MN Dept of Employment & Economic Development
Occupations with the Most Openings
in the Twin Cities
• Laborers, freight, stock and material
Computer software engineers
movers
Market research analysts
• Retail salespersons
Executive secretaries and administrative
• Cashiers
assistants
• Registered nurses
Ushers and ticket takers
• Truck drivers, heavy and tractor - trailer
Supervisors of office and administrative
workers
• Home health aides
Hairdressers
• Marketing managers
Customer service representatives
• Nursing aids
Clinical, counseling and school
• Carpenters
psychologists
•
Sales representatives, services
Data are from second quarter 2010.
Source: MN Dept of Employment & Economic Development
By 2019...
• The Twin Cities economy will have 144,100 more jobs than in 2009,
a growth rate of 8.5 %.
• Over 382,810 new workers will be needed to take jobs left vacant
as people retire or otherwise leave their profession.
• Health care and information technology jobs will be some of the
most in demand.
• Education beyond high school will be required for 17 out of the 20
fastest growing occupations.
Source: MN Dept of Employment & Economic Development
Health Care will Add the Most Jobs in the Twin
Cities Between 2009 and 2019
Health Care and Social Assistance
__. 49,824
Professional and Technical Services
MEN� 21,695
Educational Services
.13,741
Administrative and Waste Services,'
111111111111111111M 12,294
Accommodation and Food Services
"" 10,106
Construction
OEM 9,337
Finance and Insurance
111111111111
6,423
Management of Companies
11110 4,329
Arts, Entertainment, and Recreation
00 4,008
Real Estate and Rental and Leasing
01 3,137
Retail TradeW
2,834
Wholesale Trade
j
r 2,421
Public Administration
! 2,098
Agriculture, Forestry, and Fishing
-72
Mining
-79
Transportation and Warehousing
-350
Utilities
.442 .
Information
-1,393
Manufacturing .15,833
- 25,000.15,000 •5,000 5,000 15,000 25,000 35,000 45,000 55,000
Number of New Jobs
Source: MN Dept of Employment & Economic Development
Fastest Growing Occupations in the
Twin Cities, 2009 to 2019
• Biomedical engineers
Dental hygienists
• Personal and home care aides
0
Radiologic technologists and
• Physician assistants
technicians
• Veterinary technologists
Surgical technologists
• Veterinarians
Medical assistants
• Financial examiners
Veterinary assistants and animal
caretakers
• Network systems and data
0
Personal financial advisors
communications analysts
•
Compliance officers
• Self- enrichment education teachers
Pharmacy technicians
• Medical scientists
0
Family and general practitioners
• Refuse and recyclable material
0
Massage therapists
collectors
•
Nail technicians
• Hairstylists and cosmetologists
•
Anesthesiologists
•
Medical secretaries
Source: MN Dept of Employment & Economic Development
Key Trends
• Workforce
— Aging
— Rapidly changing landscape
• Job Creation
• Education
— K -12
— Post K -12
• Infrastructure
— Transportation
— Connectivity
rL 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: October 21, 2011
Subject: October Director's Report
The following is the Director's Report for October, 2011.
2011 Manufacturers Appreciation Event
Just a reminder that the Manufacturers Appreciation Event is this Thursday,
October 27 starting at 4:30 p.m. at the Holiday Inn and Suites. If you
have not yet RSVP'd, please let us know at the meeting and we will make sure we
have a name tag. As of October 20 we have approximately 75 persons that have
indicated that they plan to attend. We hope to get that number closer to 100 by the
day of the event.
Greater MSP Marketing Video
Staff received a copy of the newly created marketing that was released at their kick-
off event on October 11 Staff will show this video at Tuesday's meeting and will
also provide an update on the City Council's review of the EDC's recommendation on
membership in this organization in 2012.
Building Permit Report
The City issued building permits with a total valuation of $53,887,883 through
September. This compares to a total valuation of $41,549,020 through September
of 2010. The City issued commercial and industrial permits with a total valuation of
$8,846,000 through September compared to a total valuation of $2,930,000 through
September of 2010.
The City has also issued permits for 94 single family homes through September with
a total valuation of $29,281,000. This compares to 98 single family home permits
through September of 2010 with a total valuation of $26,908,000. The average
value of the single family permits issued to date in 2011 is $311,500 compared to an
average value of $274,571 during the same period in 2010.
Development Update
Computer Science Corporation (CSC): The tenant improvements have been
completed on their 160,000 square feet of the First Park spec building and this new
company started operation at their new location in Lakeville in the later part of
September. CSC has a maintenance contract with the United States Postal Service
(USPS) and has hired approximately 35 employees.
Hosanna / Ebenezer Senior Housing Project: Footings and foundation work
has begun for this 93 unit senior housing project. Krause - Anderson is the general
contractor. This project obtained housing revenue bond financing from both the
Dakota County and Scott County CDA's.
Walmart Project: Site work continues for this 152,000 square foot Walmart store.
They have also begun work on the $600,000 worth of retaining walls that are
required to develop this 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 August Foreclosure Update from the Dakota County CDA.
There were 14 Sheriff Sales in Lakeville during the month of August. This is
significantly less that the average of 25 Sheriff Sales per month through July. The
total number of Sheriff Sales though August is 192 compared to 317 in all of 2010.
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CDA Dakota County
Community Development Agency
496900*6600*0000000006
To: Dakota County Cities
From: Lisa Henning
Date: September 27, 2011
Re: Foreclosure Update
Chase Homeownership Center Opens in Minnesota
}
Earlier this month, Chase opened a Homeownership Center in Edina. Chase operates 86
Homeownership Centers nationwide, and the Edina location is the first in Minnesota.
The Center allows Chase, EMC and WaMu borrowers to meet one -on -one with Customer
Assistance Specialists to learn about options to possibly lower mortgage interest rates or the
monthly mortgage payment, or to help avoid foreclosure.
Borrowers that work through the local Chase office will be assigned a Single- Point -of- Contact
and may schedule a face -to -face meeting if preferred. Borrowers can expect regular updates
(approximately every 3 business days) and a faster turnaround for loss mitigation decisions.
The Center may also be used as a resource for local housing counselors.
Location: 7401 Metro Boulevard Suite 450, Edina, MN 55439
Hours of Operation:
Monday- Thursday 8 a.m. - 8 p.m.
Friday 9 a.m. - 6 p.m.
Saturday 9 a.m. - I p.m.
Contact Phone Number: 952 - 831 -3001
Visit Chase's website at https: / /www. chase .com /chf /mortgage /hrm_documents for more
information or to download needed forms.
ddbk HOME
CDA Dakota County O W N S RS H I P
Community Development Agency 4 jZ
OOOOO 00• 0 0. 0 0 0 0 0•• 0 000
Dakota County Stats — August 2011
• # of Sheriff Sales in August — 132 (compared to 189 in August 20 10)
• Total Sheriff Sales for 2011 — 1,213 (compared to 1,469 Jan.- August 20 10)
• # of Notices of Pendency Filed in August — 226
• Total Notices of Pendency Filed in 2011 — 1,885
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://eis.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:
A feature article about a Minnesota woman's struggle with working with her mortgage
company, including paying nearly $50,000 only to have the mortgage company proceed
with foreclosure.
• Fannie Mae's second quarter loss has widened, prompting the government - controlled
mortgage entity to seek $5.1 billion from the U.S. Treasury.
• Foreclosures comprised an estimated third of home sales this past spring and although
that's a smaller ratio of sales compared to the previous quarter, the number is still six
times higher than what is found in a healthy housing market.
If you have any concerns, please call me at (651) 675 -4467 or send me an email at
Ihenning (&dakotacda.state.mn.us
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�Irt I g I g I i
Page 1 of 2
Foreclosure sales this
spring were 6 times
higher than in healthy
housing markets
Article by: DEREK KRAVITZ , Associated Press
Updated: August 25, 2011 - 7:17 AM
WASHINGTON - Foreclosures made up
roughly one -third of all home sales this
spring. While that's a smaller share of sales
from the previous quarter, it's six times the
percentage of foreclosures in a healthy
housing market.
Foreclosure sales, which include homes
purchased after they received a notice of
default or that were repossessed by lenders,
accounted for 31 percent of the market in
the April -June quarter, foreclosure listing
firm RealtyTrac Inc. said Thursday.
The share of the market would likely have
been larger this spring if not for a state and
federal investigation into faulty paperwork
by banks and servicers. The probe has led
many banks to delay foreclosure sales. Once
that is complete, foreclosures will likely
surge later this year.
As a slice of all home purchases, foreclosure
sales peak two years ago at 37.4 percent. In
the second quarter, they declined from 36
percent in the January-March period.
In all, 265,087 homes in some stage of
foreclosure or owned by banks were sold in
the second quarter, down 11 percent from
the same period a year ago. Sales of all other
types of homes also declined, according to
RealtyTrac's figures, which differ from other
home -sales estimates.
Bank -owned homes, which are sold after
being repossessed, accounted for nearly 19
percent of all sales. That's unchanged from
the previous quarter.
Distressed properties, often in need of
repair, typically sell at big discounts and
weaken prices for neighboring homes.
A bank -owned home this spring sold for 40
less than the average price of other homes,
according to RealtyTrac. That's up from 36
percent in the previous quarter and 34
percent from the same quarter one year ago.
Sales of homes in the foreclosure process or
short sales went for 21 percent less than the
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;,�- i - nt T = ,I
average home sold, the firm said. That's up
from an average of 17 percent in the first
quarter and 14 percent in the second
quarter of 2010. A short sale is when the
lender agrees to accept less than what is
owed on the mortgage.
The average sales price of a foreclosure
property was $164,217, down less than 1
percent from the January -March quarter and
nearly 5 percent from the April -June quarter
in 2010, the firm said.
Nevada led all states with foreclosure sales,
accounting for 65 percent of all home sales,
RealtyTrac said.
In Arizona, foreclosure sales represented 57
percent of all home sales for the quarter, up
16 percent from a year ago. In California,
foreclosure sales accounted for 51 percent
of all home sales in the second quarter,
virtually unchanged from last year.
Several other states had foreclosure sales
that accounted for at least one third of all
home sales in the first quarter: Michigan,
Colorado, Florida, Illinois and Oregon.
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r
Pagel of 3
New image for the Twin
Cities: Prosper
Article by: , Star Tribune
Updated: October 11, 2011 - 9:31 PM
The Twin Cities is about to get an image
overhaul. Saying the region needs to dump i
is militant modesty to attract companies,
the area's new regional economic
development group has unveiled a global
brand marketing campaign that trumpets the
region's virtues.
"Get a closer look," goes one of the
proposed slogans. "Prosperity is alive and
well in the northern heartland."
The group, now called Greater MSP, rolled
out its new "prosper" brand identity for the
Twin Cities at the Pantages Theatre in
downtown Minneapolis Tuesday night.
"We've got to get this region off the best -
kept- secret list," Ecolab CEO Doug Baker told
the high -power crowd of about 500 people.
The marketing campaign will include
television, radio and print advertising as well
one -stop shop for site selectors. It's all
geared to promote the message that the
area's workforce, quality of life, education
system and culture lead businesses here to
prosper. Sample ads that were flashed to the
crowd spotlight local Fortune 500
companies such as Medtronic and Target.
Greater MSP was created by the Itasca
Project, a high -level group of dozens of local
CEOs, elected officials and nonprofits who
are concerned that the Twin Cities has been
falling behind in the jobs competition.
A good chunk of Greater MSP's first -year
budget of $2.8 million came from the private
sector, but about 30 percent came from
local governments such as the cities of
Minneapolis, St. Paul and Burnsville.
Hennepin County put in $150,000 for
Greater MSP's first year.
Earlier this year the group hired Michael
Langley, former head of Pittsburgh's
regional economic development agency, to
lead it. The group, based in St. Paul, has
shortened its name from the Minneapolis -St.
Paul Regional Economic Development
Partnership to Greater MSP.
In an interview, Langley said the campaign
took six months and about $1 million to
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Page 2 of 3
develop. Most of Greater MSP's second -year
budget of between $4 million and $5 million
will go to marketing.
The campaign is aimed at attracting
companies in five key business sectors:
headquarters and business services; health
and life sciences; financial services and
insurance; innovation and technology; and
food and agriculture.
Langley said Greater MSP will track results by
measuring new capital investment in the
region, both from inside and outside the
state, as well as job growth.
"We are going to challenge our region to
increase the number of jobs by 100,000 in
the next five years," Langley said, or about
25 percent more than the economy might
grow on its own.
The "prosper" pitch may feel a bit off -key,
with governments slashing budgets and
more than 200,000 Minnesotans out of
work. Not everyone is sold on Greater MSP
St. Paul business owner Phil Krinkie, head of
the Taxpayers League of Minnesota, said he
objects to using taxpayer money to create
another economic development entity that
potentially will duplicate work other groups
..
"It's the redundancy of these efforts that I
think is the most frustrating," Krinkie said.
Scott Burns, CEO of GovDelivery Inc., a St.
Paul software company, said he's supports
Greater MSP's overall mission. But he's
concerned it risks becoming another
expensive organization. He also doesn't
think it should replace local economic
development efforts.
"When you look at this from the east -metro
perspective, I don't think it's enough to say
'Let enough people sitting high up with a
global view decide what the next step is, "' he
said. "I think we need to craft our own plan.
"You better prove that wiping out the Capital
City Partnership is worth it."
Greater MSP enters the scene as the Capital
City Partnership, a 15- year -old nonprofit
economic development group in St. Paul,
exits. Capital City Partnership is shutting
down at the end of the year and its executive
director, Joel Akason, has joined Greater
MSP.
Others say it's about time the Twin Cities got
on its podium.
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i1
Dane Smith, president of Growth and Justice,
a policy research group in St. Paul, said
there's been too much bad - mouthing of the
state's business climate.
"We need positive, aggressive marketing of
this great progressive state," Smith said.
Jennifer Bjorhus • 612 - 673 -4683
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Mt [1� =
Prior Lake swallows
hard, grants tax break
Article by: , Star Tribune
Updated: September 27, 2011 - 2:26 PM
An agreement to give a long -term tax break
to a private business in Prior Lake, in e
xchange for an iffy promise of future jobs,
is taking place against the backdrop of a
severe slowdown in spending on major
commercial buildings across the south
metro.
The deal, still in progress, is broadly
supported at both the city and county levels
-- but not without misgivings. A co -owner
of the business itself concedes that she's
not exactly the classic recipient of such a
break.
"I wish I had 50 software jobs that would
really stimulate the economy," veterinarian
Cynthia Sellin told the Prior Lake City
Council, instead of the handful she hopes to
add as she and her husband double the size
of their River Valley Veterinary Service off
Hwy. 13.
spoke bluntly of the hurdles government
nowadays places in the way of a small
business seeking to expand -- including
fees three times as high, as a proportion of
her total costs, as they were in 1990, when
the existing building first went up.
"Even this tiny a project," she said, "is
breathtaking in what it takes just to get off
ground," by the time you've paid tens of
thousands for such required expenses as
soil samples and storm -water analysis.
At stake between the business and the city is
a so- called TIF, or tax - increment financing,
arrangement. In a TIF deal, most of the tax
dollars that would normally flow to the
government from an increase in property
value after development takes place will get
funneled back to the property owner for a
limited period of time. The purpose is to
jump -start a project that wouldn't get built
otherwise.
Because of the economy, the state has
relaxed its normal restrictions and is
allowing TIFs aimed mainly at job creation:
both short-term construction jobs and
longer -term jobs within the expanded
business.
The construction jobs are needed.
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�drt I g I g 1 17. 71.
Commercial building activity in both Scott
and Dakota counties is way down from its
peaks in the middle of the last decade, the
Metropolitan Council reports:
• In Scott County, commercial /industrial
construction peaked in 2006 at just over
$45 million, and by 2010 had dropped to
$17 million.
• In the more populous Dakota County, it
peaked at more than $200 million in 2007
but totaled just $44 million last year.
Public projects have picked up some of the
slack, especially in Dakota, which is building
transit stations and the like -- but without
enhancing tax base.
Even so, eyebrows were going up over both
the small number of jobs the veterinary
clinic hopes to add -- four -- and the
squishy nature of the promise for jobs: no
guarantees, other than the construction
jobs.
At the same time, the City Council agreed to
expand the area of the city eligible for TIF
financing to encompass the entire city,
raising questions about whether anyone with
any sort of plan to build anything is in line
for a tax break lasting for years.
"I'm a proponent of economic development,"
Mayor Mike Myser told colleagues, "but I see
a drawback here potentially if the message is
that Prior Lake is easy."
Prior Lake expects to cap the clinic's tax
forgiveness at $60,000 over the next eight
to nine years. But it then has a more valuable
piece of property on its books for many
years thereafter -- provided, as Council
Member Richard Keeney pointed out, it's still
occupied and a viable business.
"From the point of view of the public," he
said before voting against the break, "I
dislike this handing out of money and
[atmosphere of] 'I'll stick out my hand and
see what I can get. "'
Proponents countered that it fits within the
law, and that some forward movement in the
part of town in which the clinic is located --
"a tough situation in that Gateway area,"
Keeney conceded -- is welcome.
Sellin stressed that point.
"We'd like to dress up our little part of town,"
she said in an interview. "We've had some
losses of businesses near our clinic, low
occupancy, at least two commercial
buildings for sale that are not actively
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s
moving in the market and are not being David Peterson • 952 - 882 -9023
maintained. We see weeds coming up
through the blacktop and graffiti on the
walls."
One reason the larger footprint for the
business doesn't involve a lot of extra
employees, she said, is that it may be used
for "doggie day care," a new type of business
that boards animals but in much more plush
surroundings than old- fashioned cages.
"The actual spaces designed to deal with dog
boarding these days are so much different
than 20 years ago," when she was briefly in
that business, Sellin said. "There's more
space, more light, more condominium,
almost."
Scott County Commissioner Jon Ulrich's
eyebrows went up over the use of TIF for an
uncertain payoff in terms of long -term jobs.
But commissioner Barb Marschall,
representing Prior Lake, was a fan of the
idea.
"In this economy," she told colleagues,
"anything like this is a good idea. I don't see
any negatives.... It's a business with a good
reputation, certainly a visible one, and its
expansion is only a plus."
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Finance & Commerce > Print > Baby steps for a recovery in Twin Cities retail Pagel of 3
Finance & Commerce http: / /finance - commerce.com
Baby steps for a recovery in Twin Cities retail
by Anne Bretts
Published: October 18th, 2011
Redevelopment drives projects, not
new construction
Vehicles jammed the parking lot for the
Oct. 12 opening of the Whole Foods store
in Minnetonka. Herberger's opens a new
store Nov. 9 at Southdale Center in Edina,
and work is to begin in January on a new
food court, play area, entrances and other
renovations for the mall. A Trader Joe's will
open soon in Bloomington.
All these projects are filling retail spaces
that have been dark or neglected, a sign of
a retail recovery based on rebuilding rather
than new buildings.
"It's starting to come back around," said other improvements. (Staff photo: Bill Klotz)
Karla Keller Torp, executive director of the
Minnesota Shopping Center Association.
"The phones are starting to ring. RFPs (request for proposal) are being sought."
With a slate of store openings scheduled for the holiday shopping season, the metro area is on
track to absorb at least 550,000 square feet of vacant space in the second half of this year,
according to Bloomington -based Cushman & Wakefield /NorthMarq Real Estate Services, which
tracks the commercial real estate industry. That would bring the annual total to 684,000 square
feet or more — an amount equal to about half the size of Southdale Center. NorthMarq noted the
retail vacancy rate hit 8.8 percent earlier this year, the lowest it has been since 2008.
The price of success
Analysts say the recovery is real, but it has come at a heavy price: Shopping center owners have
seen property values plummet. They have renegotiated lower lease rates to keep key tenants
and even have asked city officials for help to finance renovations.
Basically, what matters is what someone will pay for a property when it goes on the market.
"There's a bifurcated market out there," said Bob Pounds, senior vice president of investment
services at Colliers International in Minneapolis. "There are the Class A properties at the one
end, which are trading very well, and then you have everything else."
Pounds said the recent sale of the Champlin Marketplace in Champlin was a good example of a
Class A property drawing attention from national investors: It's relatively new, in a great location
and anchored by Cub Foods.
"They all want that; they all bid on that," he said of the property's attributes.
In the end, however, the Inland Group of Oak Brook, III., paid $13.2 million to the New York -
based Teachers Insurance and Annuity Association TIAA -CREF, which paid $18.25 million in
2007.
Buyers don't care about listing prices or the losses a seller will take, Pounds said. "They're
looking at property performance," Pounds said. He added that while interest rates are low, down
payments are higher, with lenders demanding as much as $2 million down on a $5 million
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Herberger's department store is set to open next
month at Southdale Center in Edina it a space
vacated years ago by Mervyns. The mall itself is also
being upgraded soon with a new food court and
Finance & Commerce > Print > Baby steps for a recovery in Twin Cities retail Page 2 of 3
property. And they are checking out every detail of every transaction.
"Lenders are very cautious and very conservative," he said. "If you want to go out and buy,
they're looking at all your properties."
He said nobody wants to lend based on a fully leased property, only to have an anchor store
close two months later.
Playing catch -up can be costly
Southdale Center, described as the nation's first "totally enclosed" shopping center when it
opened in 1956, has shuffled through four owners in the last eight years while losing key
retailers to other centers and corporate closings.
The newest owner, the Simon Property Group of Indianapolis, generated some buzz by signing
Herberger's, a department store that originated in St. Cloud but is now part of the Pennsylvania -
based Bon -Ton Stores Inc. Simon has announced that the 135,000- square -foot store will fill most
of the former Mervyns retail space, which has been dark since 2004.
A big question is how much can Simon afford to invest in Southdale.
The company isn't saying. Southdale manager Laurie VanDalen said the company plans to create
a new food court, redesign entries and make other improvements but doesn't discuss financial
aspects of its projects.
Edina City Manager Scott Neal confirmed that Simon officials have asked the city to consider
investing about $5 million in what will be $30 million in work. That's a major renovation on a
property that Hennepin County valued at $107.3 million in 2010. There has been no formal
request for financing. Neal said City Council members outlined the city's own financial constraints
but didn't rule out an investment, possibly for transit center changes or other public
improvements.
Neal also said representatives of Indianapolis developer Flaherty & Collins have had informal
discussions about building 300 apartment units in the southeast corner of Southdale's huge
parking lot. He said Flaherty & Collins representatives plan to return when they are closer to
finishing another project in the metro area.
Selling land for the project could generate capital and customers, but only time will tell how
much impact such a deal could have.
No pain, no gain
"Every property has been impacted by the downturn," Pounds said, even those that seem to
have remained successful.
He noted that his company brokered the sale of the Shoppes at Woodbury Lakes last year after
the lifestyle center went into receivership. As Finance & Commerce has reported, Opus Northwest
and RED Development built the center in 2005 and sold it in 2006 for $99 million to Cornerstone
Real Estate Advisors in Hartford, Conn., part of the Massachusetts Mutual Life Insurance Co.
Last year Cornerstone surrendered the property to its lender, Florida -based LNR Partners Inc.,
which sold it for $35 million to DBRA RED, a joint venture between the New York -based Fortress
Investment Group LLC and RED Equity Partners, an affiliate of Woodbury-based RED
Development. Pounds conceded it took a lot of work to keep tenants.
Opus originally had been in a race with other developers to land high -end apparel stores, such as
Ann Taylor LOFT, Aeropostale and Banana Republic. Pounds was in a race to keep all the existing
stores to maintain the confidence of shoppers — and prospective tenants.
"When we took it on for the lender, we reworked every single lease, all 47 of them," Pounds said,
conceding that changes were needed to keep tenants committed.
"Something is better than nothing," he said of the final deals.
Looking at the long term
Some owners of smaller centers are still guarded about the market, but others are making the
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Finance & Commerce > Print > Baby steps for a recovery in Twin Cities retail Page 3 of 3
most of the opportunities it offers.
"I'd say we're holding our own," said Ken Henk, vice president of Paster Enterprises LLC, a
second - generation family development and management business based in St. Paul.
Paster owns 11 shopping centers totaling more thani million square feet of retail space
throughout the Twin Cities and suburbs. "We're a family -owned business," he said. "We usually
build and keep."
With the slowdown in construction of new retail space, Paster bought the empty Circuit City
building at 1001 Plymouth Road in Minnetonka from the lender and wooed Whole Foods, the
Austin, Texas -based health foods chain. The adjacent Office Depot space remains under separate
ownership.
Henk said empty stores often offer real value. "A lot of those spaces are good real estate, which
is why they were chosen in the first place," he said.
Grocery stores are perennial winners for a good reason, he said. "Everybody's got to eat.
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