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HomeMy WebLinkAbout01-31-12City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, January 31, 2012, p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN Call meeting to order 2. Approve November 22, 2011 meeting minutes 3. Update on Business Marketing Strategy Project 4. Presentation of 2011 Economic Development Annual Report 5. Review of Possible Downtown CDA TIF Projects 6. Director's Report 7. Adjourn Attachments: December, 2011 Building Permit Report November, 2011 Foreclosure Update Greater MSP CEO Communique, January 13, 2012 "Minnesota jobless rate drops to 5.7 % ", StarTribune, January 19, 2012 "To stoke Minnesota economy, Dayton unveils jobs bill," StarTribune, January 11, 2012 "Opponents of Scott Co. speedway organize," StarTribune, January 10, 2012 "Is Best Buy up for store closings ? ", Finance and Commerce, January 4, 2012 "New factory jobs — for a price," StarTribune, December 29, 2011 _�A oa City of Lakeville Economic Development Commission Meeting Minutes November 22, 2011 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Brantly, Schubert, Emond, Longie, Smith, Starfield, Vlasak, Ex- officio member Mayor Mark Bellows, Ex- officio member City Administrator Steve Mielke. Members Absent: Comm. Tushie. Others Present: David Olson, Community & Kienberger, Economic Development Specialist., 1. Call Meeting to Order Chair Matasosky called the meeting to orde Room of City Hall, 20195 Holyok' L 2. Approve October 25, 2011 Meeg Milt Motion 15.11 Comm -. Octane 3. Update on Buskoss M Mr. kl M s. 9 Str v ., Member 16 th EDQ:. The consultar, concerts for brandin& ; The EDC'h6ted that th Steering th'Comrriitte Strategy. `4 �perger providad"an update on the status of the Business Ti°i&xonsultants from Arnett Muldrow & Associates visited farted a joint meeting with the Planning Commission and also c: with the Steering Committee to unveil some initial h a new tagline and logo revisions. liked the direction the ro ect was moving and directed the p j 9 e to proceed with development of a Business Marketing 2011 is Develop"rient Director; Adam p.m. in the Marion Conference Minnesota. r<e to.:approve the minutes of the g as "presented. Motion carried 4. Review and Approval of 2012 Community Development Block Grant Application (CDBG) Mr. Olson reviewed the EDC memo outlining a potential reduction in CDBG funding for 2012 along with recommended allocations for eligible programs. He noted a new program activity for spot acquisition and clearance. In years past this activity was designated specifically in the Downtown area, but staff proposed the activity be Economic Development Commission Meeting Minutes November 22, 2011 utilized on a spot basis to acquire and demo properties on a strategic basis City- wide. Motion 16.11 Comms. Longie /Brantly moved to approve 2012 CDBG application as presented. Motion carried unanimously. 5. Director's Report Mr. Olson reviewed the Director's Report. The EDC discussed the Manufacturers Appreciati the Holiday Inn & Suites and noted attendance wz year. Ideas were discussed on how to increase including more active promotion of the event tE included promoting the business to t tWs ies; increasing sponsorship availability. M These ideas along with others will be inco 2012 Manufacturers Appreciation Event. 6. Adjourn The meeting was Respectfully )n OVWt � held on October 27 at s prokirately the same as last attendaric4.at next years event nt and prizes�Xfi,Qther suggestions networking '00 and the planning process for the Attested to: R. T. Brantly, Secretary 2 � B .� City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steven Mielke, City Administrator David L. Olson, Community & Economic Development Director Date: January 31, 2012 Subject: Lakeville Business Marketing Strategy Update Staff will review a presentation originally made by Tripp Muldrow from Arnett Muldrow & Associates at the January 3, 2012 City Council work session. The presentation is a review of the new tagline with sample graphics and ads that will be a part of the overall Business Marketing Strategy. Arnett Muldrow & Associates are currently working on completing the Strategy for delivery to the City. A full presentation to the EDC will be made outlining the full report, deliverables, and an implementation strategy board at an upcoming meeting. Action Requested: None. This presentation was approved by the Steering Committee and was discussed by the City Council at their January 3, 2012 work session. dl C 4 City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 27, 2012 Subject: 2011 Economic Development Annual Report Staff will be presenting the 2011 Economic Development Annual Report at Tuesday's meeting. Copies of the presentation will be provided at the meeting. n y City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Directorf Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 27, 2012 Subject: Possible Downtown Projects to be funded by CDA TIF District No. 2 The Dakota County CDA's Tax Increment Financing (TIF) District No. 2, which included a large number of parcels in Lakeville, was de- certified at the end of 2010. City staff has been in discussions with CDA staff over the past year to discuss possible projects that could be funded with tax increments previously collected within this TIF District. The following are two possible projects that both City staff and CDA staff feel could be considered: Downtown Parking Improvements The City has been looking at options for improving and expanding the CDA -owned parking lot located across the street from Winsor Plaza and adjacent to Pioneer Plaza and adjoining parking areas. The City entered into an agreement with the CDA in 1988 when the first phase of Winsor Plaza and this parking lot were originally constructed. This agreement calls for the City to maintain this parking lot as well as Pioneer Plaza (which was also originally constructed by the CDA) through 2018. The creation of a publicly owned and /or managed parking lot in this block (a.k.a. the Ben Franklin Block) was identified as a goal in the City's Downtown Development Guide approved in 2006. In 2009, the City received a planning grant from the CDA to prepare concept plans for re- constructing the parking lots in this block and as well as Pioneer Plaza. The project that is being considered at this time addresses only possible parking improvements in the center of this block. The proposed parking area improvements in this block being proposed would involve the acquisition of a portion of the adjacent parking lot currently owned by Hewitt Investments and to include a small area of the parking lot owned by the City to 'square off" the property and parking lot to provide for a better overall parking lot layout. Hewitt Investments previously indicated that they would be a willing seller, however, the property has recently gone into foreclosure. Staff is also recommending that the area be re- platted to clean up old parcel boundaries similar to what was done for Market Plaza adjacent to Ace Hardware and Main Street Manor. The City would plan to establish a system whereby the adjoining businesses and property owners would share in the operating and maintenance costs of this parking lot and proceeding with this project will be contingent on reaching this type of agreement. The current estimated cost for this project including property acquisition is $357,000. Acquisition of Property at 8770 210 Street Staff is also recommending that the City, in cooperation with the CDA, pursue the acquisition and clearance of the property located at 8770 210 Street. This property was recently foreclosed on by Freddie Mac and is currently vacant and listed for sale. This property contains a duplex that has become blighted in recent years. This is in an area that has been identified for future commercial redevelopment in the Downtown Development Guide approved in 2006 and the City's Comprehensive Plan approved in 2008. It is also adjacent to the intersection of Holyoke Avenue and 210 Street where additional turn lanes are needed to increase the traffic capacity and both vehicular and pedestrian safety. The CDA is still attempting to determine whether TIF proceeds from CDA District No. 2 can be used for property acquisition and thus are seeking further legal clarification from their TIF attorney. The demolition of the existing structure would clearly be a permitted use of TIF funds. The City has also recently submitted a Redevelopment Incentive Grant (RIG) application to fund a portion of the acquisition. The total estimated cost for acquisition and clearance is $90,000. Summary Information on these projects was presented to the City Council at their January 23 Work Session. The decision to review these projects with the City Council prior to the EDC was dictated by the need to move forward on the acquisition of the property at 8770 210 Street in a timely manner. The Council indicated general support for both projects, and requested that the EDC review these proposed projects as well. The next step would be to pursue a draft Joint Powers Agreement with the CDA to allow for the use of TIF proceeds from CDA District No. 2 to fund these and possibly other future projects in the Downtown. Ala g p �m�'R IN C � s � W, O a a� O a O C L- Y a� Y C O m N a a� O •a CO m m c m a a o c m `m Y � O O O � N I m c _ o a a � ' e O � O a 4 a 3 0 m Y O O m m m � � h X C a� •any a)JOAIOH En a '�. • :..a as r s1 !! ti I I o I M ..... G: is, I I 4; r • I C O - j ------ -- ... N o o I � I •any Fit BIMOH 8 ��o y N L _ _ A RA a 3 3 0 D d 0 � T C H L c s 0 y U y C y/ R e c � N r Q __ o— r 6 U > ? op C d O R 9 � � y e u ° U n• U C � • e °� e c 3 3 a g O w Y L 0 U > jo 0. ° Illur- fu 111111 � � c Q � h cL C 0 CL '� 3 a 3 O C c V: s � � N 3 h O ati= o 3 c 3 U 'es a v X E" d H e y e s IT c 0 0 x Y Lv .9 10 C V O c N 0 O N C C R 0 c 0 V m d a d c � U °p a a o y L � Ci y O � 0. r r M C/) R h = r v N o 00 0 0. N V t 1 5 > Q � � s N N � U L (n i0 V oo O c y C6 Y H L 2 a v� o r c R H � a a N 0. c cd a co a a� U O x e� G 3 O 3 c D Print Preview 8770 210th Street West _ r R I WO . " _ Page 1 of 1 mt I a t l left 49 r of f 04 " PW I Y 4 a ti Y i Disclaimer. Map and parcel data are believed to be accurate, but accuracy is not Map Scale guaranteed. This is not a legal document and should not be substituted for a title search, 1 inch = 200 feet appraisal, survey, or for zoning verification. http: / /gis.co.dakota.mn.uslwebsitel dakotanetgis 1printPreview.aspx ?PrintOptData =8770 21... 1/12/2012 r a 0111111 0111111 woo •T T l S � r t clip e .i i am . m z z n • h � r rn _ (ant �© City of Lakeville 1 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: January 27, 2012 Subject: January Director's Report The following is the Director's Report for January, 2012. 2012 Appointments to the EDC The City Council decided to move the appointment and re- appointment process for boards and commissions to after the first of the year starting this year. I am pleased to announce that all three EDC members who have terms that expired at the end of 2010 have requested to be re- appointed. The Council is scheduled to complete the appointment and re- appointment process in March. As a result, the election of officers for the EDC will be scheduled for the March meeting. Development Forum Update The City has been pursuing a process to review various aspects of the development process in Lakeville and to receive feedback from the development community in an effort to pursue "continuous improvement" in the development process. The City Council approved a number of zoning and subdivision ordinance amendments at their January 3 meeting to improve the development process. The Planning Commission will be reviewing a second round of possible ordinance amendments at its February 2 meeting. A list -serve is available on the City's web site to receive periodic email updates on this process. Building Permit Report The City issued building permits with a total valuation of $87,670,949 in 2011. This compares to a total valuation of $54,293,423. This is an increase of over $33 million or 61% increase over 2010. The City issued commercial and industrial permits with a total valuation of $17 974 000 in 2011 compared to a total valuation of 139 $3,742,000. The City has also issued permits for 118 single family homes in 2011 with a total valuation of $36,258,000. This compares to 129 single family home permits in 2010 with a total valuation of $35,553,000. The average value of the single family permits issued to date in 2011 is $307,271 compared to an average value of $275,604 during the same period in 2010. Additional year end building permit information is included in the Annual Report. Development Update ConAgra: ConAgra has relocated existing City water, sanitary sewer and storm sewer trunk mains to facilitate a 27,000 square foot warehouse addition on the west end of their plant. The City has issued a footing and foundation permit for the warehouse expansion. Genpak LLC: Genpak closed on the purchase of the former Berry Plastics Plant located at 8235 220 Street last fall. The company will be consolidating their existing operations from the small Lakeville plant that currently has 10 employees along with their Bloomington plant that currently has 120 employees at this new location in Lakeville. Remodeling of the former Berry building has begun and Genpak plans to phase in the relocation to this facility. Hosanna / Ebenezer Senior Housing Project: Framing work continues for the 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 CDAs. Walmart Project: In December Walmart selected Immel General Contracting out of Green Bay, WI as its general contractor for the Lakeville store. They have been pouring building footings for the last several weeks. Immel plans to turn the building over to Walmart by Labor Day and Walmart would open the store sometime in October. ImageTrend: Construction on the ImageTrend expansion located at 20855 Kensington Blvd. in the Fairfield Business Campus was substantially complete at the end of the year. ImageTrend will begin to occupy this space over the next several weeks. Goodwill: This store is scheduled to open to the public on Saturday, January 28 This 20,000 square foot new Goodwill store is located on Kenrick Avenue adjacent to the Minnesota Tile building just west of the Comfort Inn Motel. Foreclosure Update Attached is a copy of the November Foreclosure Update from the Dakota County CDA. There were 25 Sheriff Sales in Lakeville during the month of November. 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'C � al f/J b (D n � ice. �j ►.j ° ( � 'O A r� CD '. ..� 0\ OQ o rn y OQ GQ cn W f-n .r .r �D Cli W O� N A W O _ J A CN ul A to N N W 00 �O �C O W N O N w O ON 00 O —1 N w �C 00 w N .- cr N 00 00 W W Cn �C C\ C.n O_ LPN J N W N c.n 00 N Q\ o0 00 N J O J cn - A O O O O �D O cn O A O O O O� O �l a1 O O W J N ao 00 �C A O A �C �-- A a1 O !A A O 0 0 0 cn 0 0 0 En C 0 0 cn O O C O O iA �.A C f-n C A O C - A 0 0 cn C� w C O O O O O C 0 0 0 O C O O O O C C O O D\ O O O C O O ON O C w C C C w A 0 A A � O O N c N ; pl �C �° W W W N Q\ �D \C A --J IO 00 �C \C J O_ O IV Vi N O O O O� O w cA A �o O Oh w c.n O O O O O O O O O O O O O O O C O O C C\ 00 �o w C 0 0 T C C oO W O C N 00 O C 0 0 0 O 0 0 0 0 O C C O C O C C C O O C C C C C C C O C O 0 0 0 0 0 0 O O O O O O O O C O O O O O O C O O O C O O Cl C O C O O C O 0 0 0 0 0 0 O O O O O O W � W — N r - (71 O O O C C C C O C C O C O O w N O J U N O O O c�ii O O O O C C O\ � A Q\ W O O O O O O O ICI O O O O IOI O O O O C O O O O O C O O O Cn .- c� A 00 w �- w T O O C O cn cn O w O O C O O �7 w W W O O C O O N O O O O O O O O C C C C C C C C C C I� � N � aD A U LC w N A cn oo A N J r N W A I W r 00 t N In J 00 Vl W 00 �O O 00 w �C oo �O t t.n cs cn to i.n v O C O O O C O O O O C I N N A cn W A VA W N W N W O C O O w O C I C C C IOI C C C C ICI C C ICI O C C C C C ICI C C C C C C C C C I� 7 O O O O O C O O O O C C 7 T J J a T N 7 J 0 O J T O v� W N A J W C 91 O 900 PO o0 O O O J O O W O N 00 N Oo LA O O O w o O 0 0 0 0 0 0 O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 O C O Nx.4 From: Lisa Henning Date: December 19, 101 1 Re: Foreclosure Update Fannie Mae & Freddie Mac Announce Eviction Moratorium Earlier this month, Fannie Mae and Freddie Mac announced that they would place a moratorium on evictions for families living in properties where a Fannie Mae or Freddie Mac loan has been foreclosed. The moratorium is scheduled to take place from December 19, 2011 through January 2, 2012. Please note that the legal and administrative processes for the evictions may continue during this time, but families will be able to stay in their homes. Fannie and Freddie will continue with the foreclosure process on delinquent borrowers during this time period. For complete information, please see Fannie Mae's announcement http: / /www.fanniemae.com /portal/ about -us /media /corporate- news /201 1/5573.html and Freddie Mac's announcement http: / /freddiemac .mediaroom.com /index.php ?s =12329 &item = 93580 HUD Housing Counseling Program Funding Announced The U.S. Department of Housing and Urban Development recently announced that $40 million is available for a broad range of housing counseling programs. According to HUD's press release: "These grants will be awarded competitively to hundreds of HUD - approved counseling agencies and State Housing Finance Agencies across the nation that offer a variety of services including how to avoid foreclosure, how to avoid mortgage scams, how to purchase or rent a home, how to improve credit scores, and how to qualify for a reverse mortgage." HUD's press release can be viewed in its entirety by visiting http: / /portal.hud.gov /hudportal/ HUD ?src =/ press /press_ releases_ media_ advisories /201 I /HUDN o.11-280 _ _ Ol D ,. Dakota County Stats — November 2011 • # of Sheriff Sales in November — 191 (compared to 162 in November 20 10) • Total Sheriff Sales for 2011 — 1,821 (compared to 2,003 Jan.- November 20 10) • # of Notices of Pendency Filed in November — 284 • Total Notices of Pendency Filed in 2011 — 2,749 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://Zis.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: • Late mortgage payments increased in the third quarter of 2011 as compared with the second quarter of 2011. • A St. Louis Park woman faced foreclosure even though she said she made every payment on her mortgage with CitiMortgage. When the story originally ran I I /14/201 I, a sheriff sale was scheduled for 12/2/201 I. An article published 12/6/2011 said the sheriff sale had been postponed until 11312012. If you have any concerns, please call me at (651) 675 -4467 or send me an email at Ihenning(&dakotacda.state.mn.us • •, 4J c L w 0 £V 3 N 4J i O 3 O u a� i Q 0 LL O N L O .0 > O ri N c� . a� s N O N c. co O N ^ �l v'D Ln Ln 0% co ^ - N M ^ O O ^ o N v N 0 N %D N Ln - O -- N N O 00 N n1 u O e} Ln r 0 �O - Ln N C?% M r*, - M - 00 LO N d' 0% N � OT %0 V � Z u r�, Ln O N %O N O Ch t� V ill N %0 Ln !h O O% N C N M _ CA N N N N_ 1� M M 1-. %0 - 1 Cl QO d N - - N 0% N V O � Q N C1* - �O 00 ►n %C/ t+1 F %0 Ln N N �O 00 I, N- O M co co 1 - N N N N CA O N N N ^ �D Cr 0% Ln h N N 'O O M N C)- r-- 0% %O O N N L CD C% - %O 1, %O !r H 1, Q N N 00 N V) 'D .D 0* N N M 00 Ln r-. 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T •� 41 C L. 4 O� j H� V J c _ • E r L •� d O it {A l� 1 a L d0 W L> = = Y -i h 3 d O Q m LL ce U) N) PIA A W CL LL v c as 'v c O O ii C a+ N L w � s o a.+ � o 1 ' o .° Z u c c � o N f0 t y f� N � V O � L N N L � 7 E H O 23 u d � o U N V j 41 L O t U 4 c � o U a w 41 o o a C — c O o U o � Y L D 0 L N � N ao c c T O c G/ N c 1 CL c O C N Rf V O �Z a� �. o f� N c � v O E N � u_ Z N N O Z Ta LU O a7 Z d U N C O U N C C ,j C U� d Ln s .o a� = 3 u' .o O N E u 2 O (n w Q O O � U� v � y O N Y 7 C's O cc c 3 3 3 c O ld /A E > c N O E O LL Page 1 of 2 TwinCitiesecom Late mortgage payments up in third quarter, first rise in years By Eileen Aj Connelly Associated Press improvements in housing prices in most major cities during July and August. That leaves wider economic issues having a larger role, Martin said. He pointed to the U.S. credit rating downgrade, the U.S. and European debt crises and the tanking U.S. stock markets during this period. And he noted that two different measures of consumer confidence - the Conference Board and the University of Michigan - both showed those issues hurt consumer attitudes. Updated: 11/08/2011 06:54:06 AM CST NEW YORK - While lawmakers in Washington debated the debt ceiling and consumer confidence dropped, more homeowners in the U.S. were having a harder time making their mortgage payments. The rate that mortgage holders were late with their payments by 60 days or more rose in the June -to- September period for the first time since the last three months of 2009, according to TransUnion. The credit reporting agency said 5.88 percent of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.82 percent in the second quarter of 2011. The increase surprised TransUnion researchers, who previously forecast late payments, or delinquency, to fall for the quarter. "It's much different than we've been talking about the last few quarters," said Tim Martin, group vice president of U.S. Housing in TransUnion's financial services business unit. The problems were widespread. Between the second and third quarters, all but 10 states and the District of Columbia saw delinquency rates increase. TransUnion's data is culled from 27 million credit reports, representing about 10 percent of all U.S. consumers who actively use some form of credit. Martin could not pinpoint one particular reason for the jump. Normally, for instance, housing prices a nd unemployment have a big influence on delinquency. "Those are both still important, but neither has noticeably deteriorated," he said. In fact, unemployment was steady during the summer and the Standard & Poor's /Case - Shiller index showed small That atmosphere "could make folks question paying their mortgage," he observed. Martin said there's no real way to tell if some of the delinquency increase was driven by people who decided not to make payments because their homes are worth less than they owe on their mortgage. But it is notable that three of the 10 states that saw declines in late payments were among the hardest hit by the foreclosure crisis: Arizona, California and Nevada. In fact, Arizona had the best rate of improvement in the nation, and now has a delinquency rate of 7.46 percent. That still places it fourth worst in the country, but the rate is vastly improved from where it stood. In the fourth quarter of 2009, Arizona's delinquency rate hit 16 percent, the highest for any state since the foreclosure crisis began. Arizona does, however, still have the highest foreclosure rate in the nation - one in every 44 housing units with a foreclosure filing in the third quarter, according to Realty Print Powered By Dynamics http: / /www.twincities.com/fdcp ?unique = 1320779816675 11/8/2011 Page 2 of 2 TwinCitiesecom Another possibility for the bump in the delinquency rate is that a new crop of adjustable mortgages written toward the end of the housing bubble is resetting. Even if their interest rates remain low after the adjustment, the payments might have increased, said Darren Blomquist, a Realtytrac spokesman. "We still have the bad loans mixed in that are resetting." Although TransUnion still expects the delinquency rate to resume declining in 2012, the company is now forecasting a few quarters of elevated nonpayment rates due to the uncertain economic outlook. The company doesn't predict a return to the national peak rate of 6.9 percent, but said some increase is expected. "More and more homeowners are likely to struggle," Martin said. "I'm not sure this is a one - quarter blip." That echoes predictions from other sources, like RealtyTrac. "This isn't just about bad loans anymore," said Blomquist. "It's about a bad economy that's pushing people into foreclosure." Print Powered amics By http: / /www.twincities.com/fdcp ?unique = 1320779816675 11/8/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/local /west/133748513.html Page 1 of 3 Bank forecloses even though experts say homeowner made all payments Article by: RANDY FURST , Star Tribune Updated: November 14, 2011 - 11:27 AM Nancy Gosselin cannot understand why CitiMortgage is about to foreclose on her St. Louis Park house. Neither can her local banker or the Minnesota attorney general. At the heart of the dispute is a single monthly payment of $584 that CitiMorgage says she failed to make more than two years ago, according to the attorney general's office. Gosselin says she made all her payments. A loan officer at Bremer Bank agrees. The attorney general's office, which says it can't get a straight answer from CitiMortgage, has urged the mortgage giant to stop the foreclosure and work out a deal. But the fallout from the alleged missed payment has been a series of cascading late fees and penalties and refused payments that has culminated in CitiMortgage's threat to auction Gosselin's home at a sheriffs sale Dec. 2 "I did nothing wrong. This is very frustrating," said Gosselin, standing on the sidewalk last week in front of her house on Xenwood Avenue S. Gosselin gave CitiMortgage permission to discuss her case with Whistleblower. But Mark Rodgers, director of Citi public affairs in New York, declined to do so "due to privacy considerations." "Generally, if an account is in the foreclosure process, we cannot accept less than the full amount needed to bring the account current, unless a work -out plan is developed," he said. "We encourage customers in such situations to get in touch with us directly to see what options may be available to them." She tried. For nearly two years she repeatedly wrote CitiMortgage memos arguing that the company was mistaken in its late fees. CitiMortgage never budged. Stephan O'Connor, a loan officer at Bremer Bank, reviewed Gosselin's records and disputed CitiMortgage's claims, writing that Gosselin "has provided all of the proof that s •s _• s http:// www .startribune.com/templates /fdcp ?unique= 1321371786006 11/15/2011 Format Dynamics:: C1eanPrint :: http:// www. startribune .com/local/west/133748513.html L�aoi M-t q o I I I Page 2 of 3 her payments were made and made on time." Gosselin, a receptionist at Sela Roofing, spent her childhood in the house. It became hers, after her mother's death, when she bought out her sister's interest. She's lived there for more than 20 years. In 2005, she refinanced the house with an $84,100, 20 -year mortgage from Bremer Bank, which then sold the mortgage to CitiMortgage. In 2009, she filed for bankruptcy, facing an assortment of debts, but continued making mortgage payments. After the alleged missed payment in 2009, the company began piling on late fees, penalties and attorney fees that have swelled to more than $2,500. The firm has refused to accept Gosselin's past six mortgage payments, so it says she now owes more than $6,000. On Thursday, William Gosiger, who works in Attorney General Lori Swanson's consumer services division, wrote a letter to CitiMortgage that "this office does not believe that Ms. Gosselin's home should be foreclosed upon due to a problem that resulted from one allegedly missed mortgage payment." "We have dealt with nine different staffers at CitiMortgage and the right hand doesn't seem to know what the left hand is doing," said Ben Wogsland, an attorney general's spokesman. "We have sent five or six letters to CitiMortgage. We have had only one substantive written response. This is consistent with a lot of consumers' complaints about mortgage lenders being unresponsive." Whistleblower asked two local lawyers with expertise on foreclosure to review Gosselin's records. Nick Slade, a Minneapolis attorney, said it appears that after she filed for bankruptcy, CitiMortgage shifted her payments to a different department, which would explain why her checks were recorded by the company weeks after she sent them. "Even though she thought she was making a full month's payment, the late fees were paid first [by CitiMortgage] and she became further and further in arrears," he said. "The whole thing just started snowballing.... It really shows how broken the mortgage system is." Jane Holzer, an attorney with the nonprofit Foreclosure Relief Law Project in St. Paul, Powered By Dynamics --T http:// www .startribune.com/templates /fdcp ?unique= 1321371786006 11/15/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/local /west/133748513.html Page 3 of 3 �ftoi M,� FT je =,I said: "It looks like she made all her payments. She may have a dispute with CitiMortgage about whether she owes late fees. But late fees shouldn't triple or quadruple what she owes.... It shouldn't justify a foreclosure." Randy Furst • 612 - 673 -4224 PrintPo I ynamics http: / /www.startribune.com/ templates /fdcp ?unique = 1321371786006 11/15/2011 Page 1 of 5 Olson, David From: Andrea Brennan [ abrennan @dakotacda. state. mn.us] Sent: Sunday, January 22, 2012 12:13 PM To: (bnordquist @ci.apple- valley.mn.us); Jake Sedlacek; Kienberger, Adam; Branna Lindell; Olson, David; Jim Hartshorn (jhartshorn @cityofwsp.org); John Hinzman Qhinzman @ci.hastings.mn.us); Jon Hohenstein Qhohenstein @cityofeagan.com); Kim Lindquist ( kim .lindquist @ci.rosemount.mn.us); Mark Jacobs (mark.jacobs @co.dakota.mn.us); Peter Hellegers ( peter .hellegers @southstpaul.org); Skip Nienhaus ( skip .nienhaus @ci.burnsville.mn.us); Tina Hansmeier (than smeier @ci.farmington.mn.us); Tom Link (tlink @invergroveheights.org) Subject: FW: CEO Communique, 1.13.2012: Happy New Year! FYI, in case you don't receive this directly. Andrea Brennan 651 - 675 -4464 From: Michael Langley [mailto:info @greatermsp.org] Sent: Friday, January 13, 2012 1:41 PM To: Andrea Brennan Subject: CEO Communique, 1.13.2012: Happy New Year! To ensure you receive future emails, please add info @greatermsp.org to your address b If you are having trouble viewing this email, click here to view in web format. CEO Communique January 13, 2012 In This Issue CEO Communique What's New at GREATER MSP? Staff Spotlight: Val Vannett & Gita Sitaramiah Board Spotlight: Rhonda Sivarajah Regional News LS h the GREATER MSP Vi Dear Greater MSP, IIGREATER MSP Social Media The New Year is underway and all of us here at GREATER MSP are fully charged and focused on our prospects and opportunities for the year ahead. I am happy to report that GREATER MSP finished 2011 in a good place. We ended the year with six regional expansion are frequently posting new information of the GREATER MSP online platforms: eck them out! • GREATER MSP YouTube Channel • GREATER MSP Facebook • GREATER MSP Twitter ( @Greatert • GREATER MSP Website • Add the GREATER MSP video to yc 01/23/2012 Page 2 of 5 announcements, including Prime Therapeutics, Unison Comfort Technologies, Polaris, Polar Semiconductor, Chart Industries, and Five 9's. Most recently, we also worked with St. Jude Medical on their planned expansion in Plymouth. I am confident that 2012 will bring even more growth to the region. In order to continue our success, GREATER MSP is entering the New Year by taking several key steps to ensure we are moving forward with purpose and our strategic direction is on track, beginning with refreshing the organization's vision and mission statements to simplify and clarify our strategic goals. Together, they reflect our sights for the region to be recognized as a leading global economy by accelerating both job growth and capital investment for the region. by clicking here REATER MSP's Vision & Mission s we are always looking to perfect our company's rganizational core, GREATER MSP has re- aligned its ision & Mission statements to reflects its continued goals )r both global and regional prosperity. Below you will find to new statements: SION: The Greater MSP Region is recognized as a )bally leading economy where business and people osper. SION: Accelerate job growth and capital investment in Greater MSP Region by: We will also receive strategic guidance on January 17 when the Partner Advisory Committee holds its second meeting. Our established advisory groups include operational protocol, marketing, and product improvement (addressing economic development tools, business retention, and workforce development). The committee has been very engaged so far and I look forward to receiving their support and input. Continuing to build leadership strength, the GREATER MSP Board has welcomed two additional directors. Marilyn Carlson Nelson, Chairman of Carlson, joins the Board and brings great experience and leadership from her work with the Itasca Project Job Growth Task Force, and as one of the most respected executives in the world. In addition, Rafael Ortega, the newly- appointed Chair of the Ramsey County Board of Commissioners, will be replacing current board member and outgoing Ramsey county chair, Victoria Reinhardt. Our board of directors keeps growing in both knowledge and strength with each new member. Thank you, Victoria for all of your work and support to launch us and to Marilyn and Rafael, we look forward to your engagement. In other board news I would like to congratulate Randy Hogan, CEO of Pentair, who was recently named Minneapolis/St. Paul Business Journal's Executive of the Year. It is a well - deserved honor and I am proud to work alongside Randy and other top executives and public officials as we work towards a prosperous future for Greater MSP. I hope you are all ready for the opportunities and prosperity 2012 will bring. Yours in regionalism, i Michael Langley CEO Back to top • Leading regional economic strategy development, aligning with regional partners to target key industry sectors for growth • Branding and marketing our region to key audiences including business decision makers, site location consultants, workers, and residents • Serving business clients as the region's "one stop shop" for retention, expansion, and recruitment projects TER MSP Staff Out and About: I The GREATER MSP staff kicks off the New Year with several networking opportunities. Here is a list of where we will be: Later this month, Michael Langley and David Griggs will be attending the International Economic Development Council's (IEDC) Leadership Conference in San Antonio, where Michael will serve for the first time in his new role as a board member with IEDC. This organization represents the largest network of economic development professionals in the world and we're excited that Michael will be able to use this opportunity to share his experiences and apply what he learns from other professionals to GREATER MSP. • This week, David Griggs, Gene Goddard and Joel Akason traveled to Chicago for a networking trip, connecting with site selectors and other prospects. Kathy Schmidlkofer will be joining David Smith from the Minnesota Chamber on a trip to Washington D.C. to meet with congressional and goverment leaders in order to discuss key priorities of the Grea Lakes State Initiatives. Kathy will provide insight any educate leaders on current economic development and the needs of our region. Back to top 01/23/2012 Page 3 of 5 .Staff Spotliaht The GREATER MSP team has grown by two with the addition of Val Vannett as the new Director of Strategy and Research and Gita Sitaramiah as the Director of Communications. We are proud to have these strong, experienced team members leading the way to growth and continued success for our team and the region. Val joined GREATER MSP on December 15 as our new Director of Strategy and Research. In this role Val will be responsible for conducting and managing market research and analysis in order to frame and further the Greater MSP program goals and potential future initiatives. Previously, she was at DEED for ten years and prior to that she had a mix of private and public sector experience in economic statistical analysis. Val earned her Masters in Economics from the University of Colorado and a Bachelor of Science from U of M. Gita joined the team on January 10 as the Director of Communications. Gita will take the lead in assisting executives in determining strategy and driving the execution of all external communication projects in order to consistently articulate GREATER MSP's mission. She was previously a reporter and editor for the Pioneer Press where she covered business, real estate and general news. Gita earned her Master's in Public Affairs from the Humphrey Institute and a Bachelor of Arts in English from the U of M. to Il Board Spotlight This week we are highlighting an influential government thought leader from Anoka County. Commissioner Rhonda Sivarajah not only provides excellent council on the GREATER MSP board of directors but also serves as the Chair of the Anoka County Board. Com missioner Rhonda Sivarajah, Anoka County We are proud to have Commissioner Rhonda Sivarajah on our board of directors. With a background in both business and government, she is a valuable member of our team and the Greater MSP region. For the past seven years, Rhonda has served the people of Anoka County as a county commissioner. She is continually focused on improving human services, transportation and public safety for the people of Greater MSP. Rhonda's background is rooted in hard work. She is a former small business owner and a member of the Quad Area and Metro North Chambers of Commerce. Rhonda's knowledge of small businesses and government relations allows her to succeed in implementing strategies that complement both sectors. Rhonda earned a degree in international relations from St. Cloud State University and studied abroad in Japan. She is proud to have worked closely with Northern Voices, a non - profit serving children who are deaf and hard of hearing. Rhonda was appointed by Governor Pawlenty to the Governor's Workforce Development Council and also serves on the Newborn Hearing Screening Advisory Committee. Back to ional News GREATER MSP Board Member Awarded 2012 Executive of the Year Congratulations to GREATER MSP's board member and Pentair Inc. CEO Randy Hogan, who was recently selected as the Minneapolis/St. Paul Business Journafs 2012 Executive of the Year. Read the article here Jude Medical Expands in Plymouth 01/23/2012 Page 4 of 5 St. Jude Medical recently announced the expansion of its Plymouth facility and plans to double in size this year. This is a great example of growth in the medical and healthcare sector of GREATER MSP. Read the press release syndicated in the Pioneer Press 2011 in GREATER MSP business Pioneer Press reporters, including GREATER MSP's newest staff member, Gita Sitaramiah, summarize business developments from 2011 in various industry sectors of GREATER MSP. Click here to read the Pioneer Press article Senjem's agenda: jobs, regulations, taxes and a decision on Vikings stadium Newly elected State Senate Majority leader, Dave Senjem discusses jobs, regulations and taxes with the Pioneer Press and his plans for the GREATER MSP region shortly after his election last month. Read the article from the Pioneer Press Minnesota: The land of 10,000 ideas Minneapolis' Doug Spong writes an article about Minnesota striving to be 'the state' for creativity. "Count the state's creative economy, nurtured and fostered by locally based Fortune 500 companies, as a key competitive advantage. There's an identity crisis in Minnesota these days. Aside from being the nation's cold spot during the winter months, what should America think of Minnesota? A recent article in the Star Tribune suggested that Minnesota reframe its reputation to become the nation's technology corridor." Read Spong's article from the Star Tribune GREATER MSP ranked among best regions for business The Twin Cities area is the fourth -best community for business in the nation, according to a new study that measures the regions with the highest concentration of business and the strength of their economic output. Click here to see the entire list. Click to read article from the Minneapolis/St. Paul Business Journal Shakopee's Job Growth Highest Among Minnesota's Larger Cities Shakopee experienced the highest job growth in quarters one and two of 2011 for cities with a population of 20,000 or more, according to a report put out Dec. 22 by Minnesota Compass Project. Read from Shakopee Patch GREATER MSP's Manufacturing Industry Optimistic for 2012 "Manufacturing is an integral part of the state's economy," said DEED Commissioner Mark Phillips. "It's impossible to overstate its importance in terms of wages, employment and exports, so it's reassuring that the industry continues to grow." Read the press release from Positively Minnesota (DEED) Back to top GREATER. >MSP p: 651.287.1300 e: info @greatermsp.org toll -free: 1.855.287.1300 400 Robert Street North, Suite 1520, Saint Paul, MN 55101 01/23/2012 StarTribune - Print Page StarTribune Minnesota's jobless rate drops to 5.7% Article by: DEE DePASS Star Tribune January 19, 2012 - 10:17 PM Minnesota added 7,900 jobs in December, and the state's unemployment rate has now reached its lowest level in three years. The jobless rate is now 5.7 percent, down from 5.9 percent in November and well below the U.S. unemployment rate of 8.5 percent. Since August, Minnesota's unemployment rate has fallen 1.5 percentage points, the biggest decline over any four -month period dating back to 1976. Page 1 of 2 December's boost in hiring crossed several sectors of the state's economy, including business and computer services, education and health care and manufacturing. The positive numbers contrast with the recent run of monthly losses; the lost 23,300 jobs combined from September through November. "The state is now consistent with the job gains we saw nationwide," said Wells Fargo senior economist Scott Anderson certainly ended the year on a strong growth, and some of that momentum could carry us into January." State officials said they were surprised that the state's retail sector didn't report a greater number of net jobs in Decemt The sector only gained 1,200 jobs. Minnesota Retailers Association President Brian Steinhoff said he also expected me retail hiring. "The projection was that hiring was really going to be up this year," he said. For all of 2011, Minnesota gained a total of 25,300 jobs, a growth rate of 1 percent, which is slightly below the U.S. rate percent. State officials noted, however, that the gap between state and nation is narrowing. Both have increased jobs a average annualized rate of 1.7 percent since the recession hit bottom in September 2009. "The Minnesota unemployment rate continues to move in the right direction," said Mark Phillips, commissioner for the Minnesota Department of Employment and Economic Development (DEED). "The labor market is recovering at a slow steady pace." Throughout 2011, private education and health care companies led job creation in the state (11,000), followed by professional and business services, which added 10,000 jobs. Even the battered construction industry added a net tota 200 jobs for the year. The government sector showed the biggest yearly decline, down 6,100. Meanwhile, November's job losses were revised upward from 13,700 to 14,100. However, the revision was one of the smallest in months, giving state officials reason to think that the initial reports are becoming more reliable. The unemployment rate is determined by a survey of households, while the jobs report comes from a survey of employ recent months, employers have reported net job losses while the household survey showed that unemployment was dropping. With results running in opposite directions, economists were at a loss to explain why the unemployment rate decline amid heavy job losses. http:// www. startribune .eom /printarticle / ?id =13 7671818 01/20/2012 Todd Mills worked a metal lathe. StarTribune - Print Page Page 2 of 2 "The methodologies that give rise to these numbers do seem to be producing an inexplicable disconnect," said Steve H director of the state's Labor Market Information Office. The state is doing an annual revision of 2011 job estimates against actual unemployment insurance data, Hine said. Th report, due out March 1, "hopefully" will sort this out, he said. Separately, the U.S. Labor Department Thursday reported that national jobless claims fell 50,000 to 352,000 for the we Jan. 14. The claims were among the lowest since 2008 and beat consensus estimates. Minnesota lost 158,300 jobs between February 2008 and September 2009, one of the most painful stretches of the recession, according to the state's monthly employer payroll survey. As of last month, the state regained 45,600 or abo percent of those jobs, Hine said. The state currently employs 2.667 million people, while 167,000 Minnesotans continue to look for work. "We have a long way to go to a full recovery," Hine said. Dee DePass • 612 - 673 -772 © 2011 Star Tribune http: / /www.startribune.com /printarticle / ?id= 137671818 01/20/2012 StarTribune - Print Page Page 1 of 1 StarTribune To stoke Minnesota economy, Dayton unveils jobs bill Blog Post by: Baird Helgeson January 11, 2012 - 2 PM By Jennifer Brooks Star Tribune staff writer Gov Mark Dayton unveiled his jobs bill Wednesday, proposing millions in infrastructure projects, tax credits for employers willing to hire unemployed Minnesotans, tax credits for business expansion and another attempt to tax internet retail sales. The economy is improving and the state is running a small budget surplus this year, but Dayton noted that 175,000 Minnesotans remain out of work. The plan he said, flanked by DFL House and Senate leaders, is "targeted toward putting them back to work in Minnesota." Dayton and DFL leaders plan to pay for the $35 million price tag of the new -hire tax credits by closing foreign corporation tax loopholes and charging tax on Internet sales. The governor's proposals include: • A $3,000 tax credit for each unemployed Minnesota worker, veteran or recent college graduate hired for a full -time fob in 2011 and a $1,500 - per -hire tax credit for new hires in the first six months of 2012 The $35 million initiative could fund up to 10,000 new job, the DFL estimates. • A proposed $775 million bonding bill for new infrastructure projects. It would include $20 million for projects requested by the Department of Employment and Economic Development to help businesses expand in Minnesota. • $10 million for the Minnesota Investment Fund to attract new businesses to Minnesota. Last year, the DFL claims, the fund helped attract $46 million in private investment and 218 new fobs. • Internet Sales Tax. Right now, critics say, Minnesota's brick- and -mortar stores like Best Buy are acting like storefronts for Internet retailers like Amazon.com. Customers come in, browse the merchandise, and then order online Taxing internet sales — something retailers like Amazon have fought tooth and nail in other states — could raise an estimated $3 5 million in 2013, by DFL estimates. Republicans have generally rejected the idea of closing tax loopholes, so Dayton's proposal could face tough opposition in the Legislature © 2011 Star Tribune http: / /www.startribune.com /printarticle / ?id= 137114628 01/11/2012 StarTribune - Print Page StarTribune Opponents of Scott Co. speedway organize Article by DAVID PETERSON StarTribune January 10, 2012 - 2:22 PM Two months after a large crowd sat in subdued near - silence as the details of a proposed NASCAR -style speedway in southern Scott County were unveiled at a local elementary school, opposition is beginning to gel. A website is up. Petitions are being gathered And about 100 people got together in a township hall last weekend to hear a retired corporate executive who fought a similar proposal in the north metro say of the developer: "I don't think he has the financial structure to support this. He has gone from town to town to town to town Don't you people be the saps who end up with something half - built," said Jim Stahlman, a former TCF Bank executive who fought the developer's proposal in Big Lake Elements of a deal are already in motion- A landowner has petitioned to have his land in New Market Township annexed into the city of Elko New Market so that water and sewer can be provided. WHERE TO GO TO FIGHT IT -- OR NOT OPPOSITION Opppoonents have launched a website at NoMNSoeedwavPark com which in turn offers a link to an online petition against the protect at Chanae.ora SUPPORT The developer of the proposed Minnesota Speedway Park also has a website, at www minnesotasoeedwavoark corn and offers a link to a petition as well But opponents of the Minnesota Speedway Park are being assured that it's still a long, slow slog before any shovels hit the ground; environmental reviews alone are said to take the better part of a year A Blaine -based firm known as International Motorsports Entertainment and Development is proposing a 65,000 -seat oval track, a 35,000 -seat drag- racing track, a hotel and convention center and other accoutrements on a parcel near the intersection of Interstate 35W and County Road 2 El Tinklenberg, a consultant to the firm, appeared before a large audience of public officials and residents late last year to promise enhanced tax base, lobs and ancillary commercial development on a site that's been awaiting development for many years. The developer behind the idea, James Farnum, has dangled similar plans before several north -metro communities for a number of years, without success. Saturday's crowd at the New Market Township hall included a smattering of folks who either favor the idea or are keeping an open mind Opposition organizer Amy Lewis, leading the meeting, conceded that it will appeal to city officials and local people on a number of grounds. With little commercial development, she noted, taxes in Elko New Market are almost all on the backs of homeowners, and voters are restive. "This is a very divisive issue that is already polarizing to our city," she told the group, "and in my eyes that's very sad We need to maintain respect, moving forward, in anything we do. As soon as we become defensive or antagonistic, people will stop listening to us." Small town setting With a fairly modest, thoroughly small -town set of municipal facilities and services, including a skeletal police department, Elko New Market does have a much lower tax rate than other rural cities in the county People questioned whether the city would need to ramp up its services for the track with little direct gain in return. County officials have suggested that they will look to the developer for infrastructure upgrades, and that can take the form of tax abatements. Beyond finances, the main concerns seemed to be traffic and noise — especially from drag racing. "We all agree we need jobs and revenue," said township resident Becky Larson, "but if this track were on the corner of my neighborhood, I'd be astounded.... This will ruin your Saturday evening out on the patio grilling with friends." Noise, traffic and other potential issues are part of an environmental assessment that's one of the first things to be carried out Stahlman, having helped defeat the proposal in Big Lake, made the long drive south to offer lessons from his experience. He said there is encouragement to be drawn from the state's fairly strict noise laws — although he warned residents to watch out for any local legislator's attempts to help the developer do an end -run around them http://www.startribune.com/printarticle/?id= 13 6956003 Pagel of 2 01/11/2012 Proposed Scott County Speedway StarTribune - Print Page Page 2 of 2 The fact that storm water from vast acres of asphalt can harm the environment is also a trump card, he said, helping defeat the proposal in Big Lake because of its proximity to protected waters of the Mississippi River. As it happens, opponents in the Elko area are already keenly aware of the site's proximity to a prized trout stream, the Vermillion River. Friends of the Mississippi River describes the stream as "both a marvelous and a troubled natural resource Home to high - quality trout fishing and scenic beauty, it's also feeling the effects of human development. Pollution from failing septic systems, storm water runoff and agricultural pesticides and fertilizers are contributing to its impairment." NASCAR offers no promises The developer has talked of ties with important national sanctioning bodies for auto racing Stahiman responded with an August 2008 letter to Famum from a NASCAR attorney. The letter, sent with copies to local officials in the north metro, cautioned that "you should not assume NASCAR will sanction a race" dust because a track is built in Minnesota In boldface type he warned against "any expectation or reliance" on NASCAR Stahiman was surprised to see how sophisticated is the "oppo research" already gathered by Scott County opponents: Things like full-color printouts mapping local governments' comprehensive plans and satellite imagery from other recent NASCAR installations exploring whether the promised ancillary development ever transpired. Indeed, when Lewis, a marketing consultant, asked for donations, she noted that she already has exhausted multiple cartridges of toner at a time when the battle has barely begun. David Peterson • 952- 746 -3285 © 2011 Star Tnbune http:// www. startribune.com /printarticle / ?id= 136956003 01/11/2012 Finance & Commerce > Print > Is Best Buy up for store closings? Finance & Commerce ii Is Best Buy up for store closings? by Chris Newmarker Published: January 4th, 2012 Retailer resists step taken by Bloomingdale's and others The retail store closing season slogs on, with Minnesota seeing a spate of shuttered stores under brand names including Kmart, Lowe's - and now the first major Mall of America anchor tenant to leave, Bloomingdale's. Could Best Buy be next? It's been a bumpy time of late for the once hot consumer electronics giant, which is expected to announce December sales results on Friday. It's seen its stock price and profits sag as discounters and online rivals take aim at its customers. Page 1 of 3 nance - commerce.com Critics say the retailer has been sluggish in responding. Just this week, Forbes magazine even predicted the retailer's eventual demise arguing, 'Best Buy is living in the corporate equivalent of what psychologists call a state of denial. In business, that's usually the first step in a failure that ends with a spectacular collapse." The company has resisted the call from some in the industry to upend its big -box heavy strategy. As recently as the company's third - quarter earnings call in December, Best Buy CEO Brian Dunn said he wasn't thinking of closing huge numbers of stores. Best Buy media relations couldn't be reached as of press time for this story. Best Buy operates more than 1,100 namesake stores in the United States; 28 are in Minnesota. The retailer also operates eight Best Buy Mobile Stores in the state, according to Best Buy's annual report filed in April 2011. In retail circles, Best Buy is a topic of conversation. Best Buy mostly leases its locations, and many are the standard 45,000- square -foot big box format that helped Best Buy become the major electronics retailer it is today. The same format, though, could be saddling it. And Best Buy has already been opening smaller stores around 30,000 square feet. "We've heard they're looking to downsize and potentially sublease some of their space," Tricia Pitchford, senior vice president of retail at Cushman & Wakefield /NorthMarq Real Estate Services, said of Best Buy. Still, nothing has really happened in the Minneapolis -St. Paul metro area or in Minnesota, Pitchford said. "Maybe in some other markets where they have some other competition or different competition it might be happening more. It's just one of many things that are talked about right now, but we're keeping our eye on it," Pitchford said. Other than the need to show off big flat- screen television sets, there isn't much need to have so much display space for electronics at a retail store, said Jim McComb, president of the Minneapolis -based real estate and retail consulting firm McComb Group. "They don't need the display space they needed before," McComb said. He expected there would http: / /finance- commerce. com /wp- contentlplugins /dmc_ sociable toolbar /wp- print.php ?p =... 01/05/2012 Best Buy operates more than 1,100 namesake stores in the United States, including this one in Richfield. (File photo: Bill Klotz) Finance 4 Commerce > Print > Is Best Buy up for store closings? Page 2 of 3 be challenges filling any space that Best Buy vacates. Any big store closing moves by Best Buy would upend the retail real estate market's struggle to recover from a brutal downturn. About 60 big -box stores are empty in the Twin Cities, down from about 80 at the height of the recession in 2009, Pitchford said. Hoffman Estates, III. -based Sears Holdings Corp. announced in late December that it planned to close 100 to 120 Kmart and Sears stores across the country, including Kmart stores in Duluth, New Hope, White Bear Lake and Willmar. Mooresville, N.C. -based home improvement retailer Lowe's Cos. Inc. in late 2011 closed two Minnesota stores, in Rogers and Cambridge. St. Paul -based Gander Mountain has meanwhile said it is closing a 37,000- square -foot store in Maple Grove. The latest major retail closing came Wednesday, when Cincinnati -based Macy's said it would close its 233,000- square -foot Bloomingdale's at the Mall of America, the first anchor tenant lost at the Bloomington mall. The store, which has 127 associates, will close in the early spring. It appears that Mall of America officials are eyeing multiple tenants for the space that will be vacated by Bloomingdale's. On Wednesday, they said they were in discussions with multiple "international fashion - forward retail stores" interested in moving in, but declined to elaborate. The mall's owner Edmonton, Alberta -based Triple Five Worldwide says it will invest between $30 and $50 million in renovations and new construction to make the space more attractive. Best Buy also fits the bill of a major retailer in need of making itself more attractive. Besides seeking to preserve market share against discount retailers such as Bentonville, Ark. -based Wal- Mart Stores and Minneapolis -based Target, Best Buy also faces increased competition from online retailers such as Seattle -based Amazon.com. Profits are down as the company's executives focus more on maintaining market share. Best Buy earned $467 million for the nine months ended Nov. 26, 2011, down from $626 million for the same period in 2010. Revenue for the first three quarters, at $34.4 billion, was only slightly up from the comparable period a year before. Best Buy's stock price fell nearly a third over 2011, closing the year at $23.37 per share, while the S &P 500 ended the year unchanged. Best Buy's ability to compete as an online retailer came under the microscope even more after it announced a few days before Christmas 2011 that it wouldn't be able to fulfill some online orders in time for the holiday. Then there's the headline of a recent Forbes article about the company: "Why Best Buy is Going out of Business... Gradually." To better compete, Best Buy has been seeking to shift toward more technology - related services, including services for business. Best Buy announced in November that it was spending $167 million to acquire Waltham, Mass. -based Mindshift Technologies, which provides cloud services, data center services and professional services to businesses. When asked about store closings during a December conference call with analysts, Dunn insisted that bricks and mortar stores remained important as the company moves toward offering more services. "Those stores are a very important place for us to do that customer acquisition and make those connections with customers," Dunn said. "We are doing a lot of work in getting our stores right -sized where we think that makes sense. So for me it's not about closing huge tranches of stores, it's about being where the customer needs us to be, online, in stores, on the phone and it's about us being priced competitively so that we can get into the world of connections and attachments and services that help customers put this technology and service of what it is they're trying to do." Complete URL: http: // finance- commerce.com / 2012 /01 /is- best - buy -up- for - store - closings/ http: / /finance- commerce. com/ wp- contentlplugins /dmc_sociable toolbar /wp- print.php ?p =... 01/05/2012 StarTribune - Print Page 6:1 M r y . 1 � New factory jobs -- for a price Article by: LOUIS UCHITELLE New York Times December 29, 2011 - 9 12 PM LOUISVILLE, KY. - Manufacturers are hiring again in the U S., softening a long slide in factory employment. But for a new generation of blue-collar workers, even those protected by unions, the price of employment is likely to be lower wages stretching to retirement. That is particularly true of global manufacturers like General Electric. With labor costs moving down at its appliance factories in Louisville, the company is bringing home the production of water heaters as well as some refrigerators, and expanding its workforce to do so. The wages for the new hires, however, are $10 to $15 an hour less than the pay scale for hourly employees already on staff -- with the additional concession that the newcomers will not catch up for the foreseeable future. Such union - endorsed contracts are also showing up in the auto industry, at steel and tire companies, and at manufacturers of farm implements and other heavy equipment, according to Gordon Pavy, president of the Labor and Employment Relations Association and, until recently, the AFL -CIO's director of collective bargaining. "Some companies want to keep work here, or bring it back from Asia," Pavy said, "but in order to do that they have to be competitive in the final prices of their products, and one way to be competitive is to lower the compensation of their American workers " The shrunken pay scale for newcomers -- $12 to $19 an hour vs. $21 to $32 an hour for longtime workers — threatens to undo the middle-class status of even the best -paid blue-collar jobs still left in manufacturing. A similar contract limits the wages of new hires at a nearby Ford Motor Co stamping plant, but neither GE's 2,000 hourly workers nor Ford's 2,900, nor their unions nor the mayor, Greg Fischer, have objected. Quite the contrary, all argue that job creation must take precedence over holding the line on wages, given that the unemployment rate in this Ohio River city is above 9 percent and several thousand people apply for every unfilled, $13 -an- hour factory job "The trade -off is absolutely worth it," Fischer said, arguing that while the city is actively subsidizing GE's expansion here, mainly through tax rebates, that is not enough. "You must have a globally competitive wage to create lobs," the mayor insisted The generational setback implicit in a "globally competitive wage" is evident at GE's Appliance Park, the complex of factories where GE makes refrigerators, washing machines, dishwashers and other household appliances Six years into the adoption of lower wages for new hires, half of the hourly workers are paid at the reduced scale. In an earlier era, that would have been a source of friction, perhaps protest Now it isn't, and in an interview William Masden, 62, earning $31.78 an hour after 42 years at Appliance Park, attempted an explanation The younger workers still get annual raises, he noted, and by the time they top out, he and his peers — the oldest baby boomers -- "won't be here any longer to remind them of what they are missing " Linda Thomas, 37, one of the first to be hired in 2005 under the new arrangement, amends that explanation. Her hourly wage, $18 19, has almost topped out, although it is nearly $14 an hour less than Masden's But she keeps silent. Too many unemployed people, she explained, would clamor for her job and her wage if she were to protest. "You don't want to rock the boat," Thomas said. "You take a chance on losing everything you have if you do " Masden's final years at GE, doing safety checks, and Thomas' willingness, however reluctant, to do equivalent work as a forklift driver at a much lower wage illustrate a big reason that General Electric decided to expand production here. A new hybrid electric water heater will be manufactured in Louisville in a factory now being renovated, rather than in China, where GE makes its current model. And some production of refrigerators is being repatriated, mainly from Mexico. "We have gotten to a point where making things in America is as viable as making things anyplace in the world," said James P Campbell, president and chief executive of GE's appliances and lighting division, citing the drop in labor costs as a crucial reason. 'They are significantly less with the competitive wage," he said, "and that is a big help." http://www.startribune.com/printarticle/?id=136409183 Page 1 of 2 12/30/2011 General Electric s assemble area was being prepared for new production at GE's Appliance Park in Louisville. Ky Manufacturers such as GE are hiring again, but for a new generation of blue - collar workers, even those protected by unions, the price of employment is likely to be lower wages stretching to retirement William Masden left 62 earns $31 78 an hour after 42 years at Louisville's Appliance Paris New hires make 512 to $19 an hour Jerry Carney, right, president of Local 761 of the IUE- CVJA union explained, "We are getting from the company an $800 million investment in Appliance Park over the next two years, and what vie had to do for that investment was accept the 'competitive wage - StarTribune - Print Page Page 2 of 2 The revival is in an early stage. By 2005, GE's employment in Louisville had fallen to 2,300 hourly workers from a high of 17,000 in the 1970s. At that point, with the company insisting on concessions, Local 761 of the IUE -CWA union, representing the hourly factory workers, agreed to the lower wage scale for new hires. The union has ratified it in subsequent contracts. Employment, in turn, has finally stopped falling and is beginning to inch up from a low of 2,000 early this year as new hires start to come aboard faster than older workers leave. But the new people are always at the lower wage scale, except for some specialists — like machinists, who earn up to $26 an hour. "We are getting from the company an $800 million investment in Appliance Park over the next two years, and what we had to do for that investment was accept the 'competitive wage,'" said Jerry Carney, president of Local 761. Neither the nation's unions nor the government has tracked the number of jobs downgraded to the equivalent of a lower -tier wage scale, or the number of people who, like Thomas, have gone through the experience of a downgrade in her case, from $19 an hour at the Ford auto body stamping plant — until she was laid off in 2005 — to a starting wage at GE a few months later of $12 an hour "At the time I was very angry about the comedown," she said, "but then I asked a couple of others who had gone through the same experience how they felt and they said, 'We're thankful to have a job ©2011 Star Tribune http: / /www.startribune.com /printarticle / ?id= 136409183 12/30/2011