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04-24-12
City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, April 24,2012, p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN Call meeting to order 2. Approve March 27, 2012 meeting minutes 3. Election of Officers 4. Update on Business Marketing Strategy Project 5. Update on Review of Park Dedication Ordinance and Fees 6. Business Retention Visit Program and Spotlight on Business Program 7. Director's Report 8. Adjourn Attachments: March 2012 Building Permit Report "Apple Valley snares corporate HQ, 25 jobs ", StarTribune.com, March 21, 2012 "Best Buy store closings coming, including 5 in Twin Cities ", Finance and Commerce, March 29 , 2012 "Paragon Outlet Partners plans upscale outlet mall near Mall of America ", Mpls. /St. Paul Business Journal, April 2, 2012 "Study: Twin Cities best place in U.S. to find employment ", Finance and Commerce, April 18, 2012 Emm " 4VA., City of Lakeville Economic Development Commission Meeting Minutes Mach 27, 2012 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Brantly, Schubert, Emond, Longie, Starfield, Vlasak, Ex- officio member Mayor Mark Bellows, Ex- officio member Lakeville Area Chamber Executive Director Todd Bornhauser, Ex- officio member City Administrator Steve Mielke. Members Absent: Comm. Smith, Tushie. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist., 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 January 31, 2012 Meeting Minutes Motion 02.12 Comms" Emond/Longie moved January 31, 2012 meeting a s unanimously. for approve the minutes of the presented. Motion carried 3. Election of Officers The EDC discussed voting in new officers for 2012 and decided to allow additional time to consider who would be willing to fill the elected positions. Motion 03. Comms: Schubert/Emond moved to defer the election of officers to the next regularly scheduled EDC meeting. Motion carried unanimously. 4. Update on Business Marketing Strategy Project Mr. Kienberger provided an update on the status of the Business Marketing Strategy. He noted that the brand and tagline were unveiled at the State of the City address at the Holiday Inn and Suites on March 21. The EDC discussed the final product and noted several opportunities to advertise or highlight the new brand including Lakeville's Pan- O -Prog. Economic Development Commission Meeting Minutes March 27, 2012 It was noted that the EDC would be provided with regular updates on the progress of the implementation and that continual evaluation would be conducted to help gauge the impact of specific implementation pieces. 5. Review of DEED Infrastructure Grant Application for Airlake 70 Development Mr. Kienberger reviewed the EDC memo on the Minnesota Department of Employment and Economic Development (DEED) Innovative Business Development Public Infrastructure grant application (BDPI) for the Airlake 70 development. Mr. Olson added that the adjacent property owned by Fischer will be assessed upon development of their property. Comm. Emond asked about the demand for industrial sites of this size in Lakeville. Mr. Olson responded that there currently isn't sufficient 20 -plus acre sites available for the types of business prospects interested in locating in Lakeville. Comm. Vlasak asked about undeveloped land west of Dodd Boulevard that is zoned industrial and office park. Mr. Mielke responded that the owners aren't ready to develop and that there currently isn't infrastructure in place to serve those future industrial and office park sites. Comm. Emond asked who would assume the risk for paying back the DEED grant if an eligible business isn't located there in the required timeframe. Mr. Olson stated that -the City will execute a development agreement with Airlake Development granting them responsibility for any potential future grant repayments. Motion 04.12 Comms. Starfield /Emond moved to recommend to the City Council that they authorize submittal of the Airlake 70 DEED Innovative BDPI grant application. Motion carried unanimously. [Chair Matasosky abstained from the vote]. 6. Joint Powers Agreement for Downtown CDA Funded TIF Projects Mr. Olson reviewed the EDC memo outlining a joint powers agreement (JPA) with the Dakota County CDA for utilizing proceeds from the CDA's TIF District No. 2 in Downtown Lakeville. Comm. Starfield asked about the possibility of a parking ramp on the Ben Franklin block being constructed in the future. Mr. Olson responded that single ownership of the parcels comprising the existing parking lot would increase the opportunity for this option in the future. 2 Economic Development Commission Meeting Minutes March 27, 2012 Mr. Mielke add that a ramp isn't feasible for this location at this time due to the current cost per parking stall. Motion 05.12 Comms. Emond /Brantly moved to recommend to the City HRA that they approve the joint powers agreement with the CDA as presented. Motion carried unanimously. 7. Director's Report Mr. Olson reviewed the Director's Report. 8. Adjourn The meeting was adjourned at 5:50 p.m. Respectfully submitted by: Adam Kienberger, Recording Secretary Attested to: R. T. Brantly, Secretary 3 Item No. 3 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: April 24, 2012 Subject: Election of Officers Because City Council shifted board and commission appointments to the first quarter of the year instead of the end of the year, officer elections for the EDC will take place at this month's meeting. At the March meeting the EDC voted to defer elections to the April meeting. EDC members elected Jack Matasosky as Chair, Gary Tushie as Vice Chair and Bob Brantly as Secretary for 2011. Commissioners are asked to elect officers to serve the 2012 year. Item No, City of Lakeville �� Community and Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist g� Copy: Steven Mielke, City Administrator David L. Olson, Community & Economic Development Director Date: April 24, 2012 Subject: Lakeville Business Marketing Strategy Update Arnett Muldrow & Associates has completed and the City Council accepted the Business Marketing Strategy at their March 19 meeting. The new brand was officially launched at the March 21 State of the City Address at the Lakeville Holiday Inn & Suites accompanied by a video highlighting the brand statement. The following is a summary of the activities and recommendations from the Strategy document that are currently being rolled out and developed. Note that most of these pieces are near -term items and will be completed in the next several months. Other pieces discussed in the report are: • Partnership Meetings o Continued meetings with ISD 194, DLBA, and the Lakeville Area Chamber of Commerce /CVB. The next meeting has been scheduled for May 1. o The CVB has been given a disc containing all of the photos Arnett Muldrow & Associates produced to be used in their publications. Staff will be making a presentation to the CVB Board on May 15. • Development Alliance /Siteselector.com o Updating information on this website to be more visible to national site selectors • Minnesota High Tech Association Conference o This event is held each spring at the Minneapolis Convention Center which has attendees from technology companies across the state. We attended this event for the first time last year in partnership with Dakota Future, Dakota Electric, Apple Valley, and Rosemount. The 2012 Conference is April 25, and we are participating in a similar partnership as last year. o As a booth partner with the above - mentioned partners, we will be promoting Lakeville and handing out some of the new pens and travel mugs produced for these types of events. Last year staff found this event beneficial by being able to get Lakeville's presence out to a wide variety of technology companies in Minnesota. • As the logo and tag line graphics are finalized internally we will be rolling out several print ads as recommended in the Business Marketing Strategy. These will be produced in conjunction with the completion of the updating of our website and direct traffic to www.lakevillebusiness.com • Internal website development o Economic Development staff is currently working with City Communications staff to redesign the Community & Economic Development webpage • Google Analytics o Upon completion of the redesigned Community & Economic Development webpage, Google Analytics will be used to track visitors, time spent on the site, and other measurable data regarding web traffic. Staff is continuing to learn the types of data that can be tracked and used to demonstrate the impact of an online marketing piece. • Brand rollout city -wide o Communications staff is working with other departments in City Hall to incorporate aspects of the brand implementation recommendations contained in the Business Marketing Strategy. • Budget o As indicated in the initial proposed budget contained in the report, some costs such as banners and graphics are frontloaded, while recurring costs will most directly be attributed to advertising and events. Costs will be analyzed on an on -going basis as opportunities arise that fall within the recommendations of the Business Marketing Strategy. o Approximately two- thirds of the recommended budget for the first year of implementation of the marketing strategy is for print and online ad placement. Staff will be reviewing all aspects of these ad placements, including cost, prior to proceeding with the placement of these ads. o To date items have been purchased include two pull -up banners for tradeshows, promotional pens, notepads /clings, and travel mugs. The MHTA conference will be a good starting point for us to determine additional quantities needed for future trade shows this year and in coming years. Action Requested: None. The above is intended to be an update on the progress of the implementation of the approved Business Marketing Strategy. Item Flo, 5 City of Lakeville /400 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: April 24, 2012 Subject: Discussion of Park Dedication Ordinance During the Developer Survey and Developer Forum that were held last year, concerns were expressed regarding a number of the City's development fees including Park Dedication fees. Last fall, Shamrock Development Inc. disputed the park dedication fee in lieu of land for the Crescent Ridge 2 Addition plat. As a result, the City Council authorized a review of the City's park dedication requirements contained in the City's Subdivision Ordinance. Attached is a memo from TPC, who is the City's planning consultant, that includes a detailed analysis of the current park dedication fees as well as a review of trends in base property values on which park dedication in lieu of land fees are based. City Administrator Steve Mielke will provide an overview of the TPC memo including the recommendations contained within the memo. Steve will also provide updates of Park Board discussion on this issue that took place on April 18 and the City Council discussion that is scheduled for April 23rd 3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231.5840 Facsimile: 763.42 7.0520 TPCTPC9PlanningCo.com MEMORANDUM TO: Gerald S. Michaud FROM: Daniel Licht, AICP DATE: 12 April 2012 RE: Lakeville — Park Dedication TPC FILE: 135.01 - 11.03 BACKGROUND The City of Lakeville has initiated a review of it park dedication requirements applicable to new subdivisions as provided for in Section 10-4 -8 of the Subdivision Ordinance. This review has been initiated after Shamrock Development Inc. disputed the park dedication fee in lieu of land for Crescent Ridge 2 nd Addition as required under the current Subdivision Ordinance and fee schedule. Shamrock Development Inc. has placed funds for the park dedication fee in lieu of land in the amount calculated based on the current fee schedule in escrow with the City in accordance with the process outlined by Minnesota Statutes 462.358. Subd 2c(c). The park dedication requirements are being reviewed to ensure consistency with requirements established in State Statute. Exhibits: A. Community Survey B. Proposed Park Fee Calculations ANALYSIS State Statute. Minnesota Statutes 462.358, Subd. 2b enables the City to require dedication of a portion of a subdivision to the public for parks, recreational facilities, playgrounds, trails, wetlands or open space. Minnesota Statutes 462.358,Subd 2c. further requires that there be an essential nexus between the dedication of land or payment of fees based upon the City's purpose for the dedication and that the dedication or fee must be roughly proportional to the need created by the development. Current Dedication Requirement. In residential subdivisions where a land dedication is required, Section 10 -4 -8.1 establishes that the following formula will be used to determine the dedication requirement: Density Du /Ac. Land Dedication 0 -2.5 10% 2.5 -4.0 11% +4.0 -6.0 13% +6.0 -8.0 15% +8.0 -10.0 17% +10.0 17 % -20% In commercial or industrial subdivisions where a land dedication is required, five percent of the buildable land being subdivided is required to be dedicated. The current cash fees in lieu of land dedication established in Section 10 -4 -8.J of the Subdivision Ordinance are shown below. These fees were established based on a detailed study of planned park capital improvements and land acquisition undertaken by the Parks, Recreation and Natural Resources Committee and Economic Development Commission and approved by the City Council. The current fee schedule has not been adjusted since 2008. Land Use 2011 Single Family $4,747.00/lot Multiple Family $4,153.00/du Commercial $7,693/net acre Industrial $4,558/net acre Community Survey. Communities within Lakeville's region of the Twin Cities Metropolitan Area were surveyed for park dedication fees, with this information shown in the table attached as Exhibit A. This information is not to be used in establishing dedication requirements in Lakeville. However, the information is useful for comparison purposes to ensure that the City's dedication fee does not put it at a competitive disadvantage with comparable communities in the region relative to economic development objectives. Projected Growth. The 2030 Comprehensive Plan included updated population, household and employment projections for Lakeville through the year 2030 approved by the Metropolitan Council. These projections estimated that there will be 14,817 new households added in Lakeville between 2011 and 2030. However, it is likely that these estimates will be revised lower when next updated by Metropolitan Council due to the development slowdown experienced since they were prepared in 2005, which is evident by comparing the actual 2010 census figures with the 2010 projections from the 2030 Comprehensive Plan. The 2006 Parks, Trails and Open Space Plan utilized population and employment estimates from 2005, also shown on the table below, as a baseline. 2 Population estimates will be updated in 2012 to reflect the current growth projections and reevaluate planned system needs and improvements. City of Lakeville Population, Household and Employment 1990 —2030 Parks, Trails and Opens Space System Actual Estimates /Projections 2030 Population/ Acres/ 1990 2000 2010 2005 2010 2020 2030 Households 7,851 13,609 18,683 16,905 20,200 28,400 33,500 Population 24,854 43,128 55,954 52,466 59,500 78,400 88,800 Em to ment 6,563 9,885 13,862 1 13,219 18,503 22,945 27,387 Source: 2030 Lakeville Comprehensive Land Use Plan, 2006 Parks, Trails and Opens Space Plan, 2010 Census, Metropolitan Council Parks, Trails and Opens Space Plan. The City's Parks, Trails and Open Space Plan, updated in 2006, establishes the planned development and continued buildout of the parks and trails system taking into consideration projected population and household growth, national standards for park system facilities and community priorities. The parks, trails and open space system in Lakeville consists of neighborhood parks, community parks, playfields, trails adjacent to roadways and off - street trail systems, greenways, conservation areas, special use areas, facilities such as the Lakeville Area Art Center and Heritage Center and partnerships with School Districts. The development of system improvements set forth by the Parks, Trails and Open Space Plan is dependent upon dedication of land or payment of cash fees in lieu of land dedication at the time of final plat approval for new subdivisions. Lakeville had 1,551 acres of park land in 2005. The 2006 Parks, Trails and Open Space Plan recommends acquisition of up to 481 acres of additional active park land for a total system of 2,032 acres, which would not include additional greenways or conservancy areas. Based on the recommendations of the 2006 Parks, Trails and Open Space Plan, it is possible to allocate specific demand for additional park areas proportionally to future development based on adopted population, household and employment projections. A Study completed by the City of Bloomington indicates that 90 percent of the demand for park land is generated by residential uses and 10 percent is attributed to commercial or industrial uses. On this basis, the following per capita and employment calculations are established for the 2006 Park, Trails and Open Space Plan: City of Lakeville Parks, Trails and Opens Space System Acreage Per Capita/Employment 2030 2030 Population/ Acres/ Proportional Employment Capita or Acres Employment Residential 1,829ac. 88,800 0.021 Commercial /Industrial 203ac. 27,387 0.007 Source: 2006 Lakeville Parks, Trails and Open Space Plan, 2030 Comprehensive Land Use Plan, Metropolitan Council, TPC 3 The per capita estimates for park land demand based on the 2006 Parks, Trails and Open Space Plan are translated to per household estimates below. The City estimates household sizes of 3.0 persons per household in single family dwellings and 1.9 persons per household for multiple family dwelling units based on 2010 Census data and Metropolitan Council projections. City of Lakeville Parks, Trails and Opens Space System Acreage Per Household Type Persons Per 2030 Acres/ Household Per Capita Dwelling Unit Park Acreage (Share) a Single Family 3.0 0.021 ac. 0.063ac. Multiple Family 9 0.040ac. Source: 2006 Lakeville Parks, Trails and Open Space Plan, Metropolitan Council, TPC For commercial and industrial uses, the 2030 Land Use Plan projects development of 3,094.4 acres of such uses by 2030. The estimated density of employees in 2030 is therefore 8.85 employees per acre. Multiplying the estimated density of employees by the commercial /industrial per capita acreage demand of 0.007 equals a park dedication share of 0.06 per acre of development. Proposed Land Dedication Requirements. Park dedication requirements are one tool the City has to implement the Parks, Trails and Open Space Plan. The decision as to whether a specific development is required to dedicate land is the City's and is based upon the search areas for future parks set forth by the 2006, Parks Trails and Open Space Plan. City staff would advise establishment of park dedication requirements utilizing the per residential unit or per employee share of the park system calculated above based on the 2006 Parks, Trails and Opens Space Plan as a means of implementing the system plan. This method will allow for a consistent, proportional dedication of land for the planned expansion of the City's park system. The revised Subdivision Ordinance must retain flexibility to adjust park dedication requirements in consideration of the benefits of a proposed use to the City's park system (e.g. school playfields). Land dedication requirements would be determined based on the following formula for Acres /Housing Unit x Density = Ratio of Park Land / Acre of Development, then converted proportionally into a percentage for one acre of development and park (using low density residential land uses as an example): Share (a) x density (b) = demand (c) Demand (c) / 1 ac. = % park dedication /ac. development (d) 4 0.063(a) x 2.2 du /ac(b) = 0.139ac. park for each lac. of single family development(c) 1.139ac. single family and park (c)/ 1ac. = 12% park dedication (d) The following table reflects the per capita share for additional park land based on the 2006 Parks, Trails and Open Space Plan multiplied by density established by the 2030 Comprehensive Land Use Plan using the lowest density within the given range as the multiplier. Land Use Plan — Residential Proposed Park Land Dedication Re uirements 2030 Land Use Plan % Park Ded/ Share (a) Demand (c) Ac. of Development Land Use Allowed Uses Density Category b (d) Low Density Single family Less than Residential dwellings 3.0 du /ac. 0.063ac. 0.136ac. 12% (Average= 2.6du /ac Low to Medium Single family, Density Residential two family and detached 3.0 to 5.0 du /ac. 0.040ac. 0.120ac. 11% townhouse dwellings Medium Density Two family Residential dwellings, detached 4.0 to 7.0 townhouse and du /ac. 0.040ac. 0.160ac. 14% quad or row townhouse dwelling units. Medium to High Detached Density Residential townhouse, quad or row 5.0 to 9.0 townhouse or du /ac. 0.040ac. 0.200ac. 17% back -to -back townhouse dwelling units. High Density Back -to -back Residential townhouse and More than multiple family 9.0 du /ac. 0.040ac. 0.360ac. 26% dwelling units. Manufactured Manufactured Home Park home dwelling 4.0 to 7.0 du /ac. 0.040ac. 0.160ac. 14% units. Source: 2030 Comprehensive Land Use Plan, TPC The required land dedication for commercial and industrial development would be set at 6.0 percent of the developable land to be subdivided based on the proportional share for park land calculated above. 5 Proposed Cash Fee In Lieu of Land Dedication. The City may elect to receive payment of a cash fee in lieu of land for all or a portion of a specific development's park dedication requirement. City staff interprets the Statute provisions outlined above literally that the cash fee in lieu of land must be calculated specific to the amount of land to be dedicated and the value of the land required to be dedicated outlined in the following formula applicable to all land use types: Acres Required to Dedicate x Land Value = Cash Fee In Lieu of Land The paragraphs above outline a methodology to determine park land dedication factor by land use to be used in the formula. The challenge that arises is determining a means of establishing land value to be used in the calculation. To this end, City staff has researched the following options to determine the method for establishing property value: 1. Individual Appraisal. Land value at its most basic definition is the price agreed to between a willing seller and willing buyer. Under this simple concept, actual sales data could be used to establish property value. However, the timing of sales for development parcels varies and would not be a reliable indicator of property value across the City. Determining if a sale value is a reliable indicator of market value is also problematic due to the number of distressed sales by banks, lenders or failed companies that have occurred during the market downturn which artificially has deflated property value. The actual market value of a specific property at the time of final plat approval can only be determined by commissioning preparation of a individual property appraisal. The City may implement this process to determine the cash fee in lieu of land by contracting with an appraiser of its choice with the costs of the appraisal passed through to the developer. This approach would take additional time to complete during the final plat process, which may cause conflicts with the Statutory requirement for the City Council to act upon a final plat application within 120 days after receiving a complete application for final plat approval. This approach would also result in varied park dedication fees in lieu of land from plat to plat eliminating the ability of a developer to anticipate their costs for a project until such time as they are receiving final approvals. City staff recommends that a flat value be established for properties to provide consistency rather than the individual appraisal method. 2. Dakota County Assessor Data. The City has in the past utilized Dakota County Assessors data to establish base property values and trends in property value changes in determining park dedication fees in lieu of land. This approach is rational in that State law requires that property tax assessment values be based upon market value trends and be accurate within a reasonable percentage of market value. Furthermore, the size of the data base ought to provide for a more consistent analysis from year to year than does actual sale transactions. 6 However, review of current year Dakota County Assessors data finds wide variation in estimated property values between abutting parcels as well as across the City. This variation means use of Dakota County Assessors data on a specific per parcel basis would not result in an equitable park dedication requirement for the same type of land use for different parcels within the City. However, Dakota County Assessors data is an area wide evaluation of property values that could be averaged to provide a community wide estimate of property value. City staff remains concerned that the variation seen in current estimated property values of adjacent parcels reduces the accuracy of the data for the City's purposes in establishing a park dedication fee in lieu of land. 3. Appraiser Consultation. A third option City staff has discussed to establish property values for the purpose of calculating park dedication fees in lieu of land would be to obtain a consultation from an appraiser as to the values of undeveloped properties within the MUSA by Comprehensive Plan land use designation and land use type. This base value for five distinct land use categories would be used as a consistent factor in the formula to determine the cash fee in lieu of land for the various types of land use multiplied with the area of the land required to be dedicated. A mechanism would also be established for year -to -year adjustments in the base value with additional consultations from an appraiser sought when more significant changes in property values are believed to have occurred. City staff believes that consultation with an appraiser as to community wide market values of properties within the MUSA based on land use designation would establish an accurate, consistent property value to be used as the basis for calculating park dedication fees in lieu of land. The consultation option would be anticipated to cost up to $20,000 in fees from an appraiser. The process to complete a consultation on market values would also take approximately three months to complete. 4. Market Value Percentage Adjustment. City staff has established that there has been a consistent 38 percent reduction in Dakota County Assessor's estimated land values across properties from their peak prior to the economic slowdown to today. The following exhibit illustrates the decline in Assessors Market Value: N Assesors Est. Market Value Taxes Pavable Property number 2008 2012 Decrease 22- 00200 -76 -011 1,750,000 1,271,800 (478,200) -38% 22- 00800 -01 -011 375,400 272,900 (102,500) -38% 22- 00900 -52 -010 1,042,200 757,400 (284,800) -38% 22- 01200 -02 -010 1,224,200 889,700 (334,500) -38% 22- 01700 -02 -010 1,956,400 1,421,800 (534,600) -38% 22- 01700 -25 -020 745,300 540,500 (204,800) -38% 22- 01700 -75 -020 980,500 712,600 (267,900) -38% 22- 01800 -06 -012 2,481,200 1,803,200 (678,000) -38% 22- 02000 -01 -022 1,164,000 845,900 (318,100) -38% 22- 02000 -01 -040 752,000 546,500 (205,500) -38% 22- 02000 -79 -011 1,194,300 868,000 (326,300) -38% 22- 02100 -30 -011 534,100 388,200 (145,900) -38% 22- 02100 -50 -010 2,232,700 1,622,600 (610,100) -38% 22- 02300 -75 -013 885,000 643,200 (241,800) -38% 22- 02600 -05 -010 636,200 462,300 (173,900) -38% 22- 02700 -26 -010 3,485,100 2,532,800 (952,300) -38% 22- 02800 -30 -020 477,200 346,800 (130,400) -38% 22- 11995 -00 -060 1,734,500 1,260,500 (474,000) -38% 22- 38200 -00 -030 537,000 390,300 (146,700) -38% 22 -41600 -00 -030 302,700 220,000 (82,700) -38% As such, the park dedication fees in lieu of land for single family and multiple family development could be reduced by a corresponding amount to reflect changes in market conditions as the current fees were also established during the same peak period. This approach is rational in that is based on community wide changes in land value that provides consistent expectations for developers. The park dedication fees in lieu of land can also be adjusted annually on an as needed basis to reflect current market trends using this approach without the time and expense of the consultation option. Calculating the current park dedication fees in lieu of land based on a 10% land requirement and applicable density guided by the Comprehensive Land Use Plan, reducing this amount by 38 percent and then again multiplying by the applicable land dedication requirement equals the following cash fees in lieu of land: Single Family Lot: $3,532/lot Attached Dwelling Unit (7.5du /ac): $2,918/du CONCLUSION City staff recommends amending the Subdivision Ordinance to modify the land dedication requirements for new subdivisions based on the percentages of park land dedication needed for every one acre of development in order to implement the 2006 Parks, Trails and Open Space System Plan as outlined herein. Furthermore, City staff recommends adjusting the park dedication fees in lieu of land based on the percentage change in market value approach to yield a current fee consistent with the City's Comprehensive Plan goals as well as State Statute based on the best information available. City staff will present the options for adjustments to the City's park dedication requirements at the Parks, Recreation and Natural Resources Commission meeting on 18 April 2012 to review the information outlined herein and address any questions. City staff will subsequently present this information to the City Council at a work session on 23 April 2012 prior to proceeding to schedule a public hearing before the Planning Commission to formally consider the proposed adjustments to the City's park dedication requirements. C. Steven Mielke, City Administrator Roger Knutson, City Attorney Dennis Feller, Finance Director x Park Dedication Fee Survey October - 2011 SINGLE FAMILY Burnsville $2,860 Lakeville (proposed) $3,532 Eagan $3,558 ($3,308 for Park; $250 for Trail) Savage $3,591 Apple Valley $4,584 Lakeville (current) $4,747 Shakopee $5,340 /unit Farmington Varies — Appraised value /acre Rosemount $85,000 /acre MULTI FAMILY Apple Valley $2,841 Lakeville (proposed) $2,918 Burnsville $3,450 Eagan $3,558 ($3,308 for Park; $250 for Trail) Savage $3,591 Lakeville (current) $4,153 Shakopee $4,450 /unit Rosemount No category Farmington Varies — Appraised value /acre Item No. 6' City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director pe Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: April 20, 2012 Subject: Business Visit Program for 2012 Adam and I recently met with Todd Bornhauser of the Chamber to discuss partnering on business visits in 2012. The Chamber has elected to participate in Grow Minnesota! in 2012. Grow Minnesota! is a business retention and expansion program developed by the Minnesota Chamber in which 57 local chambers across the State participate in. Todd, Adam and I have identified a list of the top 30 private employers in the City. The Chamber and City will split the list with Chamber staff and City staff each contacting half of the businesses on the list and schedule times for visits. The goal will be to visit at least two - three businesses per month. The attached document from Grow Minnesota! provides an outline of the discussion topics to be addressed during business visits. The goal will be to limit the visit time to 30 minutes unless the business wishes to discuss an issue at greater length. The responses received from each visit will be shared with the Minnesota Chamber, the Lakeville Chamber Board and the EDC. Staff feels this is a very workable approach to doing business visits this year. Staff proposes to also continue the Out - and -About program that produces small informational videos on new and unique businesses. These videos are then re- broadcast on Cable Channel 16 as part of the City created programming on this channel. Another business retention /appreciation related program that the City has had for almost 10 years is the Spotlight on Business program. For the past several years we have had a goal of spot - lighting six businesses per year at a City Council meeting. Last year the EDC suggested targeting Downtown businesses for the Spotlight program and we featured five businesses during the year. Gander Mountain was the only non - Downtown business and was spotlighted after they completed a major store remodeling project. A suggestion I would make for this year is to target businesses that have moved to Lakeville or done a major expansion within the last 1 -2 years that has not previously been featured as a spot- lighted business. Action Requested: A motion indicating support for the recommended business visit program and Spotlight on Business program for 2012. GROW MINNESOTAI Grow Minnesota! Visit Discussion Topics NOTES: 1. Products /services: ■ What does your company do? ... and ■ How is it changing /diversifying? ■ How does evolving technology play a role? 2. Market information: ■ Tell us about your markets and competitors? ■ Where is your fastest growing market? ■ What percentages of your sales are in MN? 3. Community strengths /weaknesses: ■ What are the strengths and weaknesses of doing business... ■ In this community? ■ In Minnesota? 4. Workforce: ■ Can you find the workers you need? ■ Are they adequately trained? ■ Are your employees local residents? Or commuters? ■ What does your workforce look like in 3, 5, or 10 years? S. Expansion plans: ■ What are your future expansion plans? ■ Where and why is your company expanding? ■ What could be done to boost economic expansion locally? 6. Public policy: ■ What state and local policies are of greatest consequence to your business? ■ What federal policies are concerning you? • How do you receive information on current state & federal policies? 7. Wrap Up: ■ How can we assist you? ■ Are you aware of BusinessConnection, our Grow MN automated online assistance tool? 11/08/10 Item No. - 7 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: April 20, 2012 Subject: April Director's Report The following is the Director's Report for April, 2012. Status of Dakota County CDA Joint Powers Agreement The City Council acting as the City HRA Board approved the TIF Joint Powers agreement with the CDA on April 2 . The CDA closed on the purchase of the vacant duplex at 210 and Holyoke on April 13 The CDA is coordinating the demolition process for the duplex, and if everything goes according to plan, should be completed in the next 60 days. Staff is also pursuing discussions on the possible purchase of the privately owned portion of the parking lot in the Ben Franklin block that would be necessary to proceed with a public parking lot improvement project in that block. Status of DEED Infrastructure Grant Application The City Council approved the submittal of the grant application to DEED to fund street and utility extensions for Airlake 70 located east of Cedar Avenue at their April 2n meeting. DEED staff are currently reviewing this application. Building Permit Report The City issued building permits with a total valuation of $19,895,940 through March. This compares to a total valuation of $11,699,208 through March of 2011. The City issued commercial and industrial permits with a total valuation of $2,044,000 through March compared to a total valuation of $3,137,500 during the same period in 2011. The City has also issued permits for 41 single family homes through March with a total valuation of $12,229,000. This compares to 21 single family home permits through March of 2011 with a total valuation of $6,364,000. Development Update McDonald's in Crossroads: The City Council approved a conditional use permit for McDonalds to construct a new restaurant building in the Crossroads Shopping Center located at Cedar Avenue and Dodd Blvd. The project will require the demolition of the existing building in which Dino's Gyro's is located. Construction is expected to begin as soon as possible. ConAgra: ConAgra is close to completing work on a 27,000 square foot warehouse addition on the west end of their plant. This new attached warehouse space will take the place of warehouse space that ConAgra was leasing in Shakopee. Genpak LLC: The company is completing work on the former Berry Plastics Plant located at 8235 - 220 Street that it purchased in late 2011. Building Official Gene Abbott and I toured both the Bloomington plant that Genpak is in the process of moving out of and the new Lakeville plant location in the former Berry Plastics building this week. Several of the production lines have been moved from Bloomington and are up and running in Lakeville. The remaining production lines in Bloomington will be removed by June 30 and up and running in Lakeville by the end of August. All of but one of the 100+ employees in the Bloomington plant have elected to continue working for Genpak at the new Lakeville plant. Hosanna / Ebenezer Senior Housing Project: This 93 unit senior housing project is enclosed and the roof and windows have been installed. Drywall is being installed through -out the building. Model units are planned to be available to be viewed as soon as possible. Krause - Anderson is the general contractor and plans to complete the project this Fall. Roffe Container: This is a new plastics manufacturing company based in Moorhead, MN that received approval of a Conditional Use Permit from the City Council on Monday, March 19 to install several silos at the Genpak building on Hamburg Avenue in Airlake. Rolle has since closed on the acquisition of this building and will begin to make plans to occupy the building as soon as Genpak completes their move into the former Berry Plastics building. Walmart Project: The exterior walls and the steel for the roof structure has been completed. The underground utility along with electrical and plumbing rough - in work is being completed in the building. Immel, the general contractor for the project, plans to turn the building over to Walmart by Labor Day and Walmart would open the store sometime in October. Foreclosure Update The April Foreclosure Update from the Dakota County CDA had not been received by the date of this report. x :� b r G1 G1 �rf d d b7 by a Y y y n A C] H cn C7 9 °c , ado p co a w a o 0 o F 5 cc I CJ ,e o o o cao Y° a AQ c= y x a o a to tx1 y B o� c%o G CL CL < y '3 •� .-. 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CD FL rjQ fD •� o• a a P1 _ X CD •9 O N O O N v A A A O Q\ w O? r to �- � O 00 N N CA N C O Vt N N N A W Q1 Q\ u �1 O O O O C O O O O O 00 W to W N V1 U� W �O 00 O O �-1 C.I1 0o A A O �D o0 J a O o O O Co O o O O C OCC O O C O C C O C O OCOO �O w Cn to O CA C O C 00000woo 00 f O O 000 0 W 00 O O �p A O �O O O O O O O O O 0 0 O O C O O w 00 A 0 0 0 . = 0 0 O O O w O O C O O O O O 0 0 0 O O O O O O O O O O O O O O C O O O O C O O O O C 0 0 0 C O O O C C O O O O O C O O O O O O O i� O O O O O O O O O O O O O O O O O OI O O O N J O c.n J O O p O C O O O C O C C C C ON O w C7, O O\ "D N Cn O to J O O 0 0 0 0 0 0 A LA w to O C O O O C C C C 7 CI CC ICI CCC ICI CC ICI CCCC ICI CC ° CCCC O I< 0 0 O O P P O C I C C IOI C 1 5D I C C C C C C ON O` O O C w LA Oo 00 N Q O O O O O C O O C O p 0 0 O p O O O O C O O O O O O O O C O O O O C C C O O C C C C O O i� O O O O O O O O O O O O O O O O O OI O O O N J O c.n J O O p O C O O O C O C C C C ON O w C7, O O\ "D N Cn O to J O O 0 0 0 0 0 0 A LA w to O C O O O C C C C 7 CI CC ICI CCC ICI CC ICI CCCC ICI CC ° CCCC O I< StarTribune - Print Page Ire 1111 1 Apple Valley snares corporate HQ, 25 jobs Article by: JIM ADAMS Star Tribune March 21, 2012 - 9:32 PM Page 1 of 2 A technical support company with more than 30,000 employees worldwide is moving its headquarters to Apple Valley, t city's mayor announced Wednesday. Stream Global Services, based in the Boston suburb of Wellesley, Mass., will move most of its corporate staff this year southern Twin Cities suburb, where its CEO already lives, said Mayor Mary Hamann - Roland. The headquarters will initially have about 25 employees, with more expected later, company spokesman Joe Thornton Stream's CEO, Kathy Marinello, lives in Apple Valley with her husband and three sons, one of whom sat by her at the announcement luncheon at Hayes Community and Senior Center. She is the former chairman and CEO of Ceridian Co Marinello said afterward that Stream Global's corporate office was moving here because "Apple Valley is a great place has great resources." She said it will also greatly shorten her commute. Stream is negotiating to lease downtown office space in the city, Thornton said, and expects to move in this year. He s,- other reasons for the move include good relationships developed with city officials and Apple Valley's proximity to Minneapolis -St. Paul International Airport. Thornton said the company has a lean corporate staff but has service call centers, each with hundreds of employees, it locations in 22 countries. They assist clients' customers by answering questions about technical, computer, financial, bi or other matters over the phone or Internet. "I believe our community will have a tremendous positive impact from Stream Global Services," Hamann - Roland said a making the announcement in her State of the City speech. "I look for a good partnership for a very long time." About 150 people attended the luncheon, including officials from the Greater MSP regional development partnership ar state Department of Employment and Economic Development. Among them was Mark Lofthus, the department's direct business and community development. He said state officials have been in discussions with Stream Global for nine months and have offered customized staff training and low interest -loans for equipment or to renovate the company's new space. "Any state in the country would be happy to have a corporate headquarters located there. We will support that however can because it doesn't happen every day," Lofthus said. About 80 percent of business projects he works with are expar by existing companies, he added. Last month Stream announced 2011 financial results. Revenue increased by 6 percent to $847 million from $800 millioi 2010. The company had a net loss of $24 million for the year ended Dec. 31, compared with a net loss of $53 million in According to its website, Stream is "a global provider of sales, customer service and technical support services for the Fortune 1000" that "currently manages millions of voice, e-mail and chat contacts each year from customers around the globe." http:// www. startribune.com /printarticle / ?id= 143679976 3/22/2012 StarTribune - Print Page Page 2 of 2 The company has 14 call service centers in North America, including centers in Vermillion, S.D., and Sergeant Bluff, loi Jim Adams • 952- 746 -3283 © 2011 Star Tribune http: / /www.startribune.com /printarticle / ?id= 143679976 3/22/2012 Finance & Commerce > Print > Best Buy store closings coming, including 5 in Twin Citi... Page 1 of 2 Finance & Commerce (finance- commerce.com Best Buy store closings coming, including 5 in Twin Cities (update) by Chris Newmarker Published: March 29th, 2012 Minneapolis -St. Paul will be first market to totally transform' By fall, Best Buy's roughly 20 big -box stores in the Twin Cities will either be closed — or shrunk and renovated. That's the result of the Richfield -based company's decision to close 50 big -box stores nationwide this year and cut 400 corporate jobs as it looks to reduce costs by about $800 million and adjust to a changing marketplace. In the Twin Cities, it means five stores will close by fall, affecting another 301 workers. The locations are in Edina, Brooklyn Center, Hutchinson, Lakeville and Rogers. In announcing the store closings, the company said it will cut the total square footage of its Twin Cities big -box stores by 20 percent through a combination of closings and downsizing. Best Buy plans to renovate its remaining large stores into its new Connected Store format that has been tested in individual sites outside Minnesota but never throughout an entire market. The Twin Cities and San Antonio, Texas, will be the first markets to transition to the concept entirely, with the change expected to take place by the holiday season. That means plenty of remodeling work at Twin Cities Best Buy stores. "We intend to totally transform," Best Buy Chief Executive Officer Brian Dunn told analysts during a Thursday earnings call. Since Best Buy leases most of its locations, retail space for lease or sublease could quickly become available as the company shrinks the footprint of its locations. As it recasts its big -box lineup, the retailer will roll out 100 smaller Best Buy Mobile stores across the country, including the Twin Cities. News of the store revamp came as Best Buy's stock fell as much as 9 percent in Thursday morning trading amid fourth - quarter sales that did not meet analysts' expectations. The stock closed down $1.85 per share, or 6.95 percent, to $24.77. Best Buy operates more than 1,100 namesake stores in the United States, according to the company's annual report filed in April 2011. It leases most of its locations, and many are the standard 45,000- square -foot big -box format that helped Best Buy become a major electronics retailer. That format, though, could be saddling it. Shrinking the size of stores makes sense because electronics have been shrinking in size in recent years, too, said Jim McComb, president of the Minneapolis -based real estate and retail consulting firm McComb Group. McComb suspects Best Buy will be able to sell just as many products but with lower real estate costs. "The size of everything they sell has gotten smaller, except for the big - screen TVs," McComb http: // finance - commerce. com/ wp- contentlplugins /dmc_sociable toolbar /wp- print.php ?p =4... 3/30/2012 Best Buy operates more than 1,100 namesake stores in the United States, including this one in Richfield. (File photo: Bill Klotz) Finance & Commerce > Print > Best Buy store closings coming, including 5 in Twin Citi... Page 2 of 2 said. Best Buy is already operating smaller stores that are around 30,000 square feet — or taking existing 45,000- square -foot stores and leasing or subleasing a portion to another retailer to reduce its footprint, said Tricia Pitchford, senior director of retail at Cushman & Wakefield /NorthMarq Real Estate Services. Pitchford suspects Best Buy will likely reduce the size of most Twin Cities stores versus closing them. The new Best Buy Connected Store format coming to the Twin Cities will sell more connections and services — with more of a focus on mobile phones and tablet computers, Dunn said Thursday. He spoke of a customer walking out of a Best Buy with not only a tablet computer but also a wireless plan. The stores will have a central "knowledge desk," where Best Buy employees will offer advice and classes to customers, a possible nod to the popularity of Genius Bars at the Apple Retail Stores. Expanded Geek Squad operations will also be featured at the front of stores. And there will be at least one "store within a store," including Pacific Sales kitchen and bath shops and Magnolia Design Center home entertainment design stores. While Best Buy has already tested the format in certain markets, Dunn told analysts that he was "not satisfied" with the speed of transformation at the company. Store closings, as well as 400 corporate job cuts, will free up $250 million this year and another $550 million by 2015 to fund remodeling of stores, training and customer service incentives for employees, and lower prices and extra perks for customers. Best Buy officials said its sales woes are expected to continue this year. Sales at stores open more than a year will decline another 2 percent to 4 percent this year amid continued sluggish sales in televisions, notebook computers and other items that used to be the retailer's bread and butter. Comparable store sales were down 2.4 percent in the fourth quarter ended March 3. Best Buy expects revenue for its current fiscal year to stay flat at around $50 billion; analysts have expected nearly $52 billion in revenue. Besides preserving market share against discount retailers such as Bentonville, Ark. -based Wal- Mart Stores and Minneapolis -based Target Corp., Best Buy also faces increased competition from online retailers such as Seattle -based Amazon.com. Best Buy lost $1.7 billion, or $4.89 per share, in the fourth quarter, compared with earnings of $651 million, or $1.62 per share, during last year's fourth quarter. Revenue was up 3 percent year- over -year, to $16.6 billion. Excluding one -time charges, Best Buy earned $2.47 per share, which beat the $2.16 per share expected by analysts polled by Thomson Reuters. But revenue did not meet analysts' $17.2 billion expectations. For the fiscal year ended March 3, Best Buy lost $1.23 billion, or $3.36 per share, off $50.71 billion in revenue, versus a profit of $1.28 billion, or $3.08 per share, off $49.75 billion in revenue in the fiscal year ended Feb. 26, 2011. Complete URL: http:// finance - commerce.com/ 2012/03/ best - buy- store - closings- coming - including -in -twin- cities/ http: / /finance- commerce. com /wp- contentlplugins /dmc_ sociable _toolbar /wp- print.php ?p =4... 3/30/2012 Paragon Outlet Partners plans upscale outlet mall near Mall of America - Minneapolis / St... Page 1 of 3 From the Minneapolis / St. Paul Business Journal : http: // www.bizjournals.com /twincities/ news /2012 /04 /02 /upscale - outlet -mal I -of- america.htmi Paragon Outlet Partners plans upscale outlet mall near Mall of America Minneapolis / St. Paul Business Journal by John Vomhof Jr., Staff reporter / broadcaster Date: Monday, April 2, 2012, 2:46pm CDT Related: Commercial Real Estate Retailing & Restaurants John Vomhof Jr. Staff reporter /broadcaster - Minneapolis /St. Paul Business Journal Email I Twitter I LinkedIn I Facebook A Baltimore developer wants to build an upscale outlet mall in Eagan's Cedar Grove redevelopment district, just four miles south of the Mall of America. Paragon Outlet Partners is proposing a 425,000- square -foot project for a 35 -acre site that the city owns near the busy intersection of Cedar Avenue and Highway 13. The single - level, open -air mall would have roughly 90 to 100 stores. "We think [the Twin Cities market] has good demographics, and right now is underserved for what we do," said Kelvin Antill development partner for Paragon. The company has made preliminary investments of approximately $100 million for similar projects in other markets, according to city documents. A preliminary concept plan will be presented to the Eagan Economic Development Authority at a City Council meeting Tuesday night. If approved (Update: It was, unamimously), the EDA then would begin to negotiate a property sale and development agreement with Paragon. Eagan Community Development Director Jon Hohenstein said the proposed outlet mall's walkability and combination of small and medium shops align with the city's vision statement for the Cedar Grove redevelopment. The project also would feature a two -level http: / /www.bizj oumals. com /twincities/ news / 2012 /04/02 /upscale - outlet - mall -of -am erica.ht... 4/12/2012 Paragon Outlet Partners plans upscale outlet mall near Mall of America - Minneapolis / St... Page 2 of 3 parking ramp instead of surface parking, which would help preserve adjacent land for future residential, office and hospitality developments. The Eagan EDA paid more than $25 million to assemble 60 acres within the core of the Cedar Grove redevelopment district through a combination of negotiated purchases and eminent domain between 2003 and 2012. The city selected Vadnais Heights -based Pratt Development as the master developer for the site, and the local office of Cassidy Turley is helping to list the properly. Sought -after names' Paragon owns the Destination Orlando retail and entertainment complex in Florida, and it's building two new outlet malls that are scheduled to open later this year in the Dallas and San Francisco markets. The company's principals previously were top executives at Prime Retail, a leading outlet mall developer that was sold to Simon Property Group Inc. in a $2.33 billion deal in 2009. On its website, Paragon says its "outlet centers showcase the biggest and most sought - after names in the industry," including brands such as Barneys New York, Brooks Brothers, Coach, Michael Kors, Neiman Marcus Last Call, and Saks Fifth Avenue Off 5th. Dave Brennan co- director of the Institute for Retailing Excellence at the University of St. Thomas, said the project would benefit from the site's accessibility and from being the outlet mall closest to the Twin Cities' urban core. "They'll draw from a very attractive and broad trade area," he said.'"It certainly will bolster retail in the south metro and the Twin Cities in general." Paragon also views the proximity of the Mall of America as a positive, Antill said, because it will help attract tourists to the outlet mall. And it shouldn't have much of an impact on leasing because of the differences outlet malls and traditional shopping centers. "We'll still shoot for the same tenants we always shoot for," he said. "For the most part, we usually get everyone we anticipate getting." Eagan's viability While retail development has been slow to rebound following the recession, this is the second major project proposed in Eagan. Minneapolis -based CSM Corp. wants to build a 500,000- square -foot shopping center on the Lockheed Martin site at the intersection of Yankee Doodle and Pilot Knob roads. CSM's proposal is scheduled to go before the Eagan Planning Commission on April 24, then on to the full City Council on May 15. Tom Palmquist CSM's vice president of commercial development, said he'd welcome the outlet mall. http: / /www.bizjoumals.com /twincities/ news / 2012 /04/02 /upscale- outlet - mall- of- america.ht... 4/12/2012 . Paragon Outlet Partners plans upscale outlet mall near Mall of America - Minneapolis / St... Page 3 of 3 "I think Paragon's interest in Cedar Grove further validates the viability of the Eagan market, and the proposed project would help bring additional complimentary retail traffic to the trade area," he said. John Vomhof Jr. covers retail, restaurants, hospitality, sports business, and advertising /public relations/ media. He's also on the air on WCCO -AM 830 with Dave Lee daily at 8:45 a.m. and on Fox 9 TV Fridays at 5:30 & 6:30 http: / /www.bizj oumals. com /twincities/ news / 2012 /04/02 /upscale - outlet - mall -of- america.ht... 4/12/2012 The Co$t of Doing Business > Print > Study: Twin Cities best place in U.S. to find emplo... Page 1 of 1 me Co$t of Doing Business http : / /finance - commerce.com /bizcost Study: Twin Cities best place in U.S. to find employment by Chris Newmarker Published: April 18th, 2012 Minneapolis -St. Paul may have one of the most competitive job markets in the country - another sign that wages could be on the rise in the Twin Cities. Ajilon Professional Staffing recently identified the Twin Cities as the best place to find a job in the U.S. Minneapolis -St. Paul led a top -10 list that also included Austin, Texas; Salt Lake City; Boston; Milwaukee; Richmond, Va.; Raleigh- Durham, N.C.; Baltimore; Pittsburgh; and Dallas. Melville, N.Y. -based Ajilon used U.S. Labor Department statistics and insights from regional market branches to compile the list list boasted an unemployment rate below 8 percent. Each of the cities on the Ajilon also drew on factors including diversity of industries in the city, cost of living, the range in size of companies offering employment, and level of higher education among residents. Here's what Ajilon had to say about Minneapolis -St. Paul winning the top spot: Minneapolis-St. Paul rose to the top of this year's list, in large part due to the fact that hiring is on the rise in this market for many of the big industry players in fields including financial services, health care, retail, and manufacturing —which contributes to a lower level of unemployment. In addition, there is an increased demand in Minneapolis for specialty positions, including specialty tax and compliance, IT audit and SEC - related experience. Combined with additional factors including relatively low cost of living and low crime and poverty rates, the Twin Cities offers an ideal environment for job seekers. Complete URL: http:// finance - commerce.com /bizcost/ 2012/04/ study- twin- cities- best - place- in- u -s -to -find- employment/ http: / /finance- commerce. com / bizcost /wp- contentlpluginsldmc_ sociable toolbar /wp- print.p... 4/19/2012