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HomeMy WebLinkAbout01-22-13LR lle w . w AGENDA Economic Development Commission January 22, 2013 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of November 27, 2012 minutes 3. Review of Commercial / Industrial Park Dedication Analysis (Dan Licht, the City's Planning Consultant, will be at the meeting to present the analysis) 4. Review of Proposed Tax Abatement Policy 5. Discussion of recent City Council Actions (Requested by EDC Member Longie) 6. Update on Business Marketing Strategy Implementation Project 7. Directors Report 8. Adjourn Attnr,hmantc December, 2012 Building Permit Report 2012 CDA Foreclosure Report Building Permits: Some cities recover, others stall. SouthTribune, 1 -15 -2013 Shakopee's growth spurt comes to a dead stop. StarTribune, 1 -13 -2013 In Lakeville, building is on the rise. Pioneer Press, 1 -15 -2013 Open to Business program expands into Dakota County. Finance & Commerce, 1 -7 -2013 Minnesota's first bus -rapid transit system nears completion. Finance & Commerce, 12 -10 -2012 Bizbeat: Lakeville business upgrades to solar. StarTribune, 11 -30 -2012 F� ILem No. CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES November 27, 2012 Chair Matasosky called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Matasosky, Longie, Brantly, Emo0 p.m.), Stanfield, Smith, Schubert, Vlasak, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser, Ex- officio member Mayor Mark Bellows, Ex'officio member City Administrator Steve Mielke. Members Absent: Comm. Tushie. i Others Present: David Olson, Community & Development Uector; Adam Kienberger, Economic Development Speciaffis n ° , 2. Approval of September 25, 2012 meeting Motion Comms. Smith/ dff3ld- moved `#approve the minutes of the September 25, 01 ­ "" N: ` , 2`1hoeting as V,,msented. Motion carried unanimously. 3. Review of Pro � -- � pos�cl T'ax ��cremen�f<�na�ncing (Tr1 =j Policy Mr. Olson revi� the EDQ` emo oWning the proposed TIF policy. He provided an overview tae recommrWed objecs and policies for the use of TIF. The ELG _discus. ralt tweaks to the policy to make it "more custornet.=cdsed" � EDC also discussed the level of equity stake that should b�rquired forotec!tc be considered for TIF assistance. CbMm— Smith cond d thatl policy serves as a guide for analyzing TIF eligible prof ,,, and flexibilit - accounted for in the policy. Motions Corn'Smith /Longie moved to recommend the draft TIF policy to ;they Council. Motion carried unanimously. Mr. Olson noted - that a draft Tax Abatement policy will be presented at the next EDC meeting. 4. Update on City Visioning Process Mr. Mielke discussed the process for the upcoming City visioning process. He noted that the process is community focused and will be used to guide the City Council on making decisions about what the City should look like as it continues to grow and age. Economic Development Commission Meeting Minutes, November 27, 2012 to demonstrate the Mr. Mielke added that Craig Rapp has been hired as the consultant for the Visioning Process and that a Task Force will be appointed by the City Council in January to help facilitate the process. Comm. Smith asked what the results of a community survey would generate. Mr. Mielke responded that a survey will be conducted to form guiding principles for the City Council to utilize in topics ranging from housing decisions to planning guidelines. The survey will be able to provide the City Council with a uniform vision to help guide decisions. X" Comm. Longie noted that the process should inclu balance between community wants and associated cd Mr. Mielke added that the Visioning Process what it wants to be. Comm. Brantly stated that it is prudent :inning to by undertaking this type of a process. , , Comms. Smith and Schubert inquired about a part of the process. I for th what the munity to envision Page 2 wants enefits analysis being done as Mr. Mielke responded that the prbcess Wl ',,, r to 6 a vision and guiding principles. Specific prcram and service ttea:y9anctuding cost/benefit analyses would come later 4 4 , 5. Update on Bttess Marke6 g Strategy Implementation Project Mr. Kienberge]('� ;providedg� Ah update 'oft, the recent activities related to the implementation r4,'�A he , ,W, rketing strategy. He noted that Lakeville received significant exposure an ptve interaction with the commercial broker comm irrii y`at f,@ 2012xx ICAR Expo in Minneapolis. 6. Mector's Re M ff , on reviewed a Director's Report. He noted that the City has permitted overly single- familj��omes and over $100 million in total permit valuations for the year. , 7. Adjourn Meeting adjourned at 5:45 p.m. Respectfully submitted by: Adam Kienberger, Recording Secretary 3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231.5840 Facsimile: 763.42 7.0520 TPC TPC@PlanningCo.com ll TO M - 7 2 - 1 l 9 111 TO: Steven Mielke, City Administrator FROM: D. Daniel Licht, AICP DATE: 9 January 2013 RE: Lakeville — Commercial /Industrial Park Dedication TPC FILE: 135.01 -11.03 BACKGROUND ILA No. � The City of Lakeville initiated a review of park dedication requirements applicable to new subdivisions as provided for in Section 10 -4 -8 of the Subdivision Ordinance to ensure consistency with requirements established in State Statute. The City Council, at their meeting on 4 June 2012, approved an ordinance amending the Subdivision Ordinance to establish park land dedication requirements for all uses and cash fees in lieu of land dedication for residential uses. The City Council also directed that a review of park dedication fees in lieu of land for commercial and industrial uses be undertaken. While the statutory methodology for determining park dedication fees is the same for residential, commercial and office uses, the initial park dedication study indicated that the same approach could not be used to establish the average land values for the separate land uses. Whereas residential land demonstrated consistent pattern of adjustments to land market values by the County Assessor's Office over time, the County Assessor's adjustments to values for commercial and industrial land have not followed the same consistent pattern for undeveloped commercial and industrial properties. For this reason, the City Council engaged the consultation services of an appraiser to establish an average fair market value for undeveloped commercial properties and a separate average fair market value for industrial properties. Exhibits: A. Patchin Messner Dodd & Brumm Memorandum 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 and, where fees are to be dedicated in lieu of land, that the fee be based on the average fair market value of unplatted land. A map illustrating the properties within the MUSA and MUSA Expansion Area A meeting these criteria guided for commercial, office and industrial land use by the 2008 Comprehensive Plan is attached hereto for reference. Projected Growth. The table below outlines the projected population, household and employment growth for Lakeville through 2030 adopted as part of the 2008 Comprehensive Plan. The cumulative population and employment numbers indicated a percentage divide of 81 percent population to 19 percent employment. By 2030, the percentage of employment will increase to approximately 24 percent of the total of population and households. In discussing the initial demographic planning for the 2040 Metropolitan Area plan, the Metropolitan Council indicates that the development downturn in the latter portion of the previous decade will setback growth projections by as many as ten years. However, as noted during the discussion of the residential park dedication requirements, the implementation of the 2006 Parks, Trails and Open Space Plan and 2008 Comprehensive Land Use Plan are not dependent on a specific timeframe and that both the development and population /employment will occur. City of Lakeville Population, Household and Employment 1990 —2030 Actual Estimates /Projections 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 Employment 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 Open 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, household and employment growth, national standards for park system facilities and community priorities. 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. 2 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. An analysis completed by the City of Bloomington indicated that 90 percent of the demand for park land is generated by residential uses and 10 percent is attributed to commercial or industrial uses. City of Lakeville 2012 Parks, Trails and Opens Space System $7,693/net acre Acrea a Per Ca ita/Employment $4,558/net acre 2030 2030 Population/ Acres/ Proportional Employment Capita or Acres Employment Residential 1,829ac. 88,800 0.021 Commercial /Industrial 203ac. 1 27,3871 0.007 Source: 2006 Lakeville Parks, Trails and Open Space Plan, 2030 Comprehensive Land Use Plan, Metropolitan Council, TPC The 2030 Land Use Plan projects development of 3,094 acres of such uses by 2030. The estimated density of employees in 2030 is therefore 8.85 employees per acre (27,387 employees /3,094 acres). 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 (8.85 employees per acre x 0.007 acre of park land per employee). Current Dedication Requirement. The City Council approved an ordinance on 4 June 2012 establishing that for commercial or industrial subdivisions where a land dedication is required, six percent of the buildable land being subdivided is to be dedicated. The dedication of land is based on the acreage of land guided for commercial and industrial land uses by the 2030 Land Use Plan, projections of existing /future employment populations within the City to 2030 and the amount of park land guided by the Parks and Trails System plan attributable to commercial and industrial users. Note the 2006 Parks, Trails and Open Space plan does not designate acquisition of future park land within areas guided for commercial, office or industrial land uses. The current cash fees in lieu of land dedication for commercial and industrial uses 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 2007. Land Use 2012 Commercial $7,693/net acre Industrial $4,558/net acre 3 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 ordinance amendment approved by the City Council on 4 June 2012 established a methodology to determine park land dedication factor by land use, including commercial and industrial uses, to be used in the formula above. The consultation obtained from the appraiser contracted by the City provides guidance on the average fair market value of undeveloped land guided for commercial, office and industrial land uses. For the purposes of this study, parcels guided for office land uses by the 2008 Comprehensive Plan are grouped with industrial land uses in terms of establishing an estimate of average fair market value based on similar land use characteristics. The findings of the appraiser's analysis yield the following mean and median land values: City staff is recommending that the City utilize the median values determined by the appraiser as the basis of establishing park dedication fees as this number will ensure that the results aren't influenced one way or another by the specific values and number of parcels in the survey sample. Commercial Office /Industrial Mean $234,907/ac. $5.39/s.f. $121,694/ac. $2.79/s.f. Median $199,414/ac. $4.58/s.f. $102,807/ac. $2.36/s.f. Source: Patchin Messner Dodd & Brumm City staff is recommending that the City utilize the median values determined by the appraiser as the basis of establishing park dedication fees as this number will ensure that the results aren't influenced one way or another by the specific values and number of parcels in the survey sample. Community Survey. Communities within Lakeville's region of the Twin Cities Metropolitan Area were surveyed for park dedication fees, with this information shown below. 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. 4 Commercial Office /Industrial Median Value $199,414/ac. $102,807/ac. 6% Dedication $11,965/ac. $6,168/ac. Current fee $7,693/ac. $4,558/ac. Change I +$4,272/ac. +1,610/ac. Source: Patchin Messner Dodd & Brumm Community Survey. Communities within Lakeville's region of the Twin Cities Metropolitan Area were surveyed for park dedication fees, with this information shown below. 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. 4 COMMERCIAL city Park Fee In Lieu of Land Rosemount $4,500 /ac. Shakopee $6,390/ac. Lakeville (existing) $7,693/ac. Savage $8,397/ac. Lakeville maximum $11,965/ac. Burnsville $16,000 /ac. Apple Valley Formula based on land value of $260,000 /ac. Eagan $869/sf. of building area Farmington Appraised value of specific parcel INDUSTRIAL city Park Fee In Lieu of Land Rosemount $2,500 /ac. Lakeville (existing) $4,558/ac. Lakeville maximum $6,168/ac. Shakopee $6,390/ac. Savage $8,397/ac. Burnsville $11,000 /ac. Apple Valley Formula based on land value of $100,000 /ac. Eagan $236/sf. of building area Farmington Appraised value of specific parcel Options. Based on the preceding analysis City staff is seeking recommendation from the Parks, Recreation and Natural Resources Committee, Economic Development Commission (EDC) and Planning Commission as to the establishment of park dedication fees for commercial and office /industrial land uses. City staff has outlined the following options for discussion and consideration: 1. The technical analysis of the Statutory method for determining park dedication requirements supports the City increasing its park dedication fees for commercial and office /industrial land uses to $11,965/ac. and $6,168/ac. respectively. This would result in an increase of $4,272/ac. (55 %) for commercial properties and $1,610/ac. (35 %) for industrial properties. 2. The technical analysis of the land and cash -in -lieu of land dedication provides a ceiling, or maximum, for what the City may require of commercial, office or industrial developers. The City Council, with recommendations from the Park, Recreation and Natural Resources Committee and EDC may establish lesser dedication requirements for land, cash or both. This is especially true for commercial and industrial development given the competitive nature of economic development. The City has had a practice of collecting lower park dedication fees for commercial and industrial development as incentive to encourage such development in Lakeville (as is the case with the current fees established in 2007). 5 3. An increase in park dedication fees for commercial and office /industrial uses may be phased in over several years stepping up from the current fees to that which the technical analysis indicate is justified based on current market value information. Regardless of the policy decision made in setting the park dedication fees for commercial and office /industrial uses, City staff recommends a mechanism be established for periodic or annual adjustments in the base value in accordance with the average change in the Dakota County Assessor's estimated market value for the qualified properties (as was proposed for residential uses). The City could seek additional consultations from an appraiser when more significant changes in property values are believed to have occurred. RECOMMENDATION Following past practice of collecting lower park dedication fees for commercial and industrial development as an incentive to encourage such development in Lakeville, staff recommends that the fees be set below the maximum allowable but not less than the current fees. Further, the fees should be reviewed on a regular basis. PROCESS The information outlined herein will be presented to Parks, Recreation and Natural Resources Committee, the Economic Development Commission and Planning Commission. City staff is requesting a recommendation from each advisory body as to the approach to be taken in regards to changes to the park dedication fees for commercial and office /industrial land uses. These recommendations will be forwarded to the City Council at a work session before initiating the process to formally amend the park dedication requirements as may be directed. C. Roger Knutson, City Attorney Dennis Feller, Finance Director Daryl Morey, Planning Director David Olson, Community and Economic Development Director Brett Altergott, Parks and Recreation Director IL PATCHIN MESSNER DODD BL BRUMM VALUATION COUNSELORS MEMORANDUM To: Mr. Dennis Feller, City of Lakeville From: Jason nL�L''."Messner, MAI, and Randy J. Deones Date: January 10, 2013 Subject: Average fair market value of un- platted land At your request, this memorandum is intended to summarize our research and analysis of commercial and industrial land sales in Dakota County and surrounding areas in order to arrive at an indication of average market value for un- platted land in the City of Lakeville. Furthermore, this consultation is not intended to be an appraisal of any particular property within the City of Lakeville. Rather, the function of this memorandum is to provide guidance to the City in determining appropriate park dedication fees. SCOPE OF WORK The following data and information pertaining to the review of park dedication fees have been examined. • Reviewed City of Lakeville zoning information • Reviewed map of un- platted commercial and industrial land in Lakeville • Reviewed Minnesota Statute 462.358 Subd. 2b. regarding park dedication fees • Investigated comparable commercial and industrial land sales • Complete statistical analysis on observed market values S Prno ExeCLI iA' ffJC "S • 1 x)67 Wcs[ J rescrvc , F30UJ(V_1rd ' F3Urr- '0J'L, MN 5.;53/ 'nc ;r�.:: ;95 ,'• F95- i ;?f `> F,,;': 11 152) P9') i 5 ✓ i City of Lakeville Land Analysis January 2, 2013 Page 2 ZONING The land sales summarized on the following commercial sales grid are assumed to have zoning and potential uses consistent with these commercial zoning districts. Alternatively, industrial development in the City of Lakeville is driven by three zoning districts. These industrial districts are as follows: 1 -1, Light Industrial District 1 -2, General Industrial District I -CBD, Industrial Central Business District The land sales summarized on the following industrial sales grid are assumed to have zoning and potential uses consistent with these industrial zoning districts. Lands guided for commercial industrial and office development in the city of Lakeville are identified on the City of Lakeville 2012 Parks, Trails & Open Space Plan Map on page 4. Following the map is a list of parcels potentially affected by a modification to current park dedication fees. PARK DEDICATION FEES The City of Lakeville initiated a review of its park dedication fee requirements applicable to new subdivisions to ensure consistency with the State's statute. This examination was initiated after the City received feedback from developers that a review of the fees was needed. After modification of park dedication fee requirements for residential land, the City continued with a review of fees for commercial and industrial land. At their meeting on June 4, 2012, the City Council approved an ordinance amending the Subdivision Ordinance to establish park land dedication requirements for all uses and cash fees in lieu of land dedication for residential uses. The purpose of this memorandum is to aid in determining the need for modifications to cash fees in lieu of park land dedication applicable to commercial and industrial land. PATcmN MEssmR Dow & BRumm Valuation Counselors City of Lakeville Land Analysis January 2, 2013 Page 3 PARK DEDICATION FEES State qt-,t, rta 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. 2b. (c). 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 and, where fees are to be dedicated in lieu of land, that the fee be "based on the average fair market value of the un platted land for which park fees have not already been paid." PATcm MESSNER DODD & BRu m Valuation Counselors City of Lakeville Land Analysis January 2, 2013 Page 4 t ' J L"D Q � < G > p Z to it 'Y: a a e Q at Z Q u > N G Z u r U o rt fA N M N o ! D _ J X UI U U �+ W c *` v � a w Z OE icei,, • 3E x otlz u U Q Q c ;fi �. I IW �I PATCHIN MESSNER DODD &. BRUMM Valuation Counselors City of Lakeville Land Analysis January 2, 2013 Page 5 COMMERCIAL, INDUSTRIAL AND OFFICE WITHIN CURRENT MUSA AND MUSA EXPANSION AREA A CITY OF LAKEVILLE COMMEROAL OUTIOTS COMMENKIAL PARCELS N IM7111IAL OMOTS INDUSTRIAL PARCELS OFFICE OUTLOTS OFRCE PARCELS 037 - 220200055012 037 037. 221037500020 037 - 220310075010 037 - 224790000010 037.220250054013 037 - 270280053051 037 - 220011005013 037 22117S0000I0 037. 220320009010 037. 724790001024 037 - 220310050031 037 220290025013 037 - 220011045030 037 - 222695000011 037.2203100SO010 037-224790100010 037 270360003011 037 "2211$'000174 037 - 220011005040 037. 222695000050 037.220320075012 037.220360003012 037.22168S100010 037. 220011006011 037 "222695200010 037"270330064010 037.22036000x010 037 - 221860000080 037 2200110OW20 037- 220340050011 037.220360006017 037 - 272119500060 037 - 220011017020 037220340051010 037- 220360007011 037. 222119500070 037. 220011037020 037. 220340051020 037 "222122500010 037.270011052021 037.123202500030 037 - 220011054010 037 - 273202800010 037 "220020001030 037. 273201801010 037. 220090079011 037 "224434000040 037- 220100025024 037. 224434001010 037 120100051011 037 - 224434001020 037 220121021011 037. 224434001031 037. 220121027013 037. 224434002010 037220121029011 037.214434002070 037- 220121029012 037- 224434002030 037720121034011 037.226460000050 037 120121053010 037 2771S000000O 037 220250219010 037- 227150000070 037.220250.055010 037 227670000120 037 220:6*04010 U37 227670001020 037 72079J035010 037 - 227670201030 037 220330003028 037 227670101040 037 "220340025021 037 - 227670300010 037.220340025022 037 227670300020 037-2203W025030 037 "220340026016 037 - 220340026018 037- 220350001012 037 - 220350001014 037- 2203SCMIDI5 037 220350002011 037 "220350003011 03'7.2203M 037 - 720350005012 037.220350005013 037-1203U=5014 037.2203WO06010 037.220360025011 037 770V.YW26n10 037. 220360027020 037- 220360027030 037.221185000172 037 - 221185000180 037 - 221185000184 037.22119500DIBS 037 - 221185000186 031. 221705200030 037.271860000011 037 221860004012 037 - 224434500020 037 - 224880000060 037 - 226750702020 037. 227130000103 PATCHIIN MESsNER Dow & BRumm Valuation Counselors City of Lakeville Land Analysis January 2, 2013 Page 6 COMMERCIAL AND INDUSTRIAL LAND SALES The purpose of this consultation was to investigate land sales in order to develop the average fair market value of commercial and industrial land in the City of Lakeville. The average market value is necessary for the City of Lakeville to complete their review of park dedication fees and determine if modification of the current fee structure is needed. The sales comparison approach is the preferred, and most common, technique for developing a market value estimate for land. Typically, the sales comparison approach compares vacant land sales to a subject property. However, in this case, there is no specific subject property. As such, no adjustments are made to the comparable sales. Rather, as a group, the comparable sales are expected to form a range of unit values established by informed buyers and sellers in the marketplace. The average market value can then be utilized as a reasonable estimation of average fair market value for land in Lakeville, thereby meeting the guidelines of Minnesota statute. Sales of land in Dakota County and surrounding areas were researched using the Appraisal Data Network database and the Northstar Multiple Listing Service. Information has been sought on recent sales of parcels that are similar in terms of potential use as the zoning categories within the City of Lakeville. Sales of un- platted land and outlots, that closed between January 2009 and November 2012, have been gathered. These sales are generally similar to the parcels identified on the City of Lakeville Map, but located in competing areas. The unit of comparison used for both the commercial sales and the industrial sales is price per acre. The sales used in this analysis are presented on location maps, followed by summary grids, and statistical analysis. PATCMN MESSNER Dom & BRUMM Valuation Counselors City of Lakeville Land Analysis January 2, 2013 Page 7 A, .c.r.x,z &Usu Grove f ridlaY V404 5norwvww Whitt . rtc Brooklyn okLRro MAC 9rghton L e 4 # a 0CprstaF Rot *0$e C _ •, irraca Mos v n ��prr°uth ar i Y, ° F&O ma:)04 Pion art �-Wllwddlhll Lear j a � _ FaA.'an t°�rAta . rnoar Lang Mae wwwapolls ► s,°• „« wbodwmd taut nnNo a � PN Ge" A 7 � t,M1�u+arrrtta , DrrMsrn " 5t Tar" Bar, d+na ! u ' c. 8rxhtaoua Sf+orw►ood t ta•o+rabe 1Z E,x�r -- ,�;=.w �,>F..t C& 38 13 Cfa.,praft► Si hewPx+ St V of*' Chant- Asen A � v+.. r"' r rove '' �l�ghts St Pa,r •• / ;CwWammil l9 i an Pa:a tae ^R7v t , tea!!! 1 a . d T A cmwamr ? tarouaale if o @�, +, _ Co mmabe S L" Salr►aor:i „ r:.a °r+ S�� til, � - Part 1sas^ k ►drt hYG'! -w,ttW Gp^Para6irs L3 � 1{ ••• ^.. •� Urmn ►w ,e Se Tromra r+sarner La "� ••, - . . e �er+eer tan�p.►sarc i k iS � . ` C A %.tow RNW a =, . _ -' Carroar&e 17 LurOka Canbt . radar Late t Now trllerkar E � C�atia Rnr.A - vireo. R3 s a u ... Ram= Yesw :.cnsda.e tsar R C M�srse�ry W+da+ - • c low •, COMPARABLE COMMERCIAL SALES LOCATION MAP PATCHIN MESSNER DoDD & BRumm Valuation Counselors al M �N N c < Zo y P� � � f■pQ � qp � i �� � i � s ��. �p ■ � j E E a �g �S � s � a a f i I a a u U � J _ 333 $ F€ s € H *1 w I �j 29 1 1 If - 'N l III S 9 E Q Ch City of Lakeville Land Analysis January 2, 2013 Page 9 COMPARABLE INDUSTRIAL SALES LOCATION MAP PATCB IN MESSNER DODD & BR UMM Valuation Counselors Corcoran o a ark �t i.54 vr Whitt $ r cr anr.�nrro ° drove - t.Gr�:. `Bear.a.,� � ,;,� ¢ Lrke a ShoteviieMr center � ripbwn Va.a� t aryl ' 1 Ve on&* Ltatltorrrrl 'tAWr No a o Ctili ` plea Carpca xfrfGr I�atn� r',yk• c .►' e R 7 `r Mapkewood m Low v "s abon t+ope+w L r +as- Law - "t YJa .. Oakdale Sap " M.r,wanw eeact o Lam C+rand Ave C<r*nraor M Sw"Pao Q�acal+��*n W ry.. Tares say ins SI Raneaaa» &wrewood CMeenwaacl �, scaaa,a a► Paul JA : t f V�clarls QrroweW K NOW taw finer Grove t Consw" * 811001n16910 . aPa Cartpr�trk t , Abakow , GorrOlrib'�e r'i CNISkA I It (Atti+�J:Er yarv+r- _ a valle ti�..a lbl ; - ��lr••V11fi �'..�' �fL'Y I rJlr 34a►s y riO�f► ti�m C1ntDie +�04; ' ►+� C" pvoblw D. 6. 1 Vorms <r c4rrm a t t;redr #Znr a LakavM* Lowrenoe 39 Myr'CR ,r orona ► A 8, C d t New Try v C.wOlr' l#a! Mew >IAerwm Eaavrsly _ CaWllr Rock lJnr ^.y .is1 Cry. H•. - - 6Y�h►tOr , Cie. I>+iiWs?D7 Aareaal�.r: to .:101. .. -. S�illrsipA LAft , C•rrKaQO �•rx'wcY i i i • .., DES �An•�".:r' Y VIhisdand a 'i1lnAMiY+ .'.-.m COMPARABLE INDUSTRIAL SALES LOCATION MAP PATCB IN MESSNER DODD & BR UMM Valuation Counselors d m C N O < ry O V J � G Y Y Y Y Y Y Y Y Y Y Y Y Y Y YY $ » o n n n a n o O 2 City of Lakeville Land Analysis January 2, 2013 Page 11 SUMMARY OF FINDINGS It is important to note that the comparables have not been adjusted to a specific subject property and not all of the comparables presented herein have been verified. Based on our investigation, unit sale prices for commercial and industrial land proximate to Lakeville are summarized as follows: Commercial Land Range Mean Median $38,320 to $652,519 per Acre $234,907 per Acre $199,414 per Acre Industrial Land Range Mean Median $16,441 to $320,000 per Acre $121,694 per Acre $102,807 per Acre PATCHIN MESSNER DODD & BRUMM Valuation Counselors City of Lakeville • Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 18, 2013 Subject: Review of Draft Tax Abatement Policy One of the goals in the approved 2011 -2012 Strategic Plan for Economic Development that was approved by the City Council is the creation of a toolbox of incentives. The most commonly used incentive tool utilized by cities in Minnesota is Tax Increment Financing (TIF). The EDC recommended a proposed TIF Policy to the City Council at the November EDC Meeting. Tax Abatement is probably the second most Eeme common incentive used by cities. It is prepesed recommended that a proposed Tax Abatement Policy and the previously recommended TIF Policy be brought forward for the Council's consideration together. Attached is a Draft Tax Abatement Policy for the EDC's consideration. It is similar to the previously recommended TIF Policy and both attempt to include the objectives that were included in the revised overall Business Subsidy Policy recommended by the EDC and adopted by the City Council last year. I have also attempted to incorporate several of the EDC's comments on the proposed TIF Policy into the attached Draft Tax Abatement Policy. Tax Abatement, while similar to TIF, has several significant differences. One of the most significant differences is that the County and School District are able to decide if they wish to participate in tax abatement projects, which is not the case with TIF projects. As a result, many tax abatement projects are done with only City participation. With City only participation, the amount of financial assistance that can be offered for projects is considerably less. This is, however, offset somewhat effset by the increased flexibility of Tax Abatement. While TIF can only be used for manufacturing and warehousing projects (unless it is a redevelopment or housing type project), Tax Abatement can be used for other types of projects, such as commercial office or retail projects, as well as industrial projects. In practice, Tax Abatement is a rebate rather than an exemption from paying taxes. In fact the City is required to increase its levy by the amount of the Tax Abatement amount. This should however be offset by a decrease in the tax levy by the other taxing entities (County and School District) that are not participating in the Tax Abatement project. Staff would prepese recommend to bringing a proposedal for both the Tax Abatement Policy and TIF Policy to the City Council for review at a work session in February or March. Action Requested: Staff is requesting comments and feedback as well as a recommendation to the City Council on the attached proposed Tax Abatement Policy. DRAFT CITY OF LAKEVILLE TAX ABATEMENT POLICY A. POLICY PURPOSE For the purposes of this document the term "City "shall include the Lakeville City Council. The purpose of this policy is to establish the City of Lakeville's position relating to the use of Tax Abatement for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax abatement assistance. It is the intent of the city to minimize the risk and amount of business assistance to a project and to leverage its public dollars to maximize private sector funding. The City of Lakeville is granted the power to utilize tax abatement by Minnesota Statutes chapters 469.1812 through 468.1815, as amended. The fundamental purpose of tax abatement in Lakeville is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through the assistance. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of business assistance to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City Council can deviate from this policy for projects that supersede the objectives identified herein. B. OBJECTIVES OF TAX ABATEMENT As a matter of adopted policy, the City will consider using the use of tax abatement to assist private development projects that will achieve one or more of the following objectives: • To retain local jobs and /or increase the number and diversity of jobs that offer stable employment and /or attractive wages and benefits. • To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off" development. 1 • To facilitate the development process and to achieve development on sites which would not otherwise be developed but -for the use of Tax Abatement. • To remove blight and /or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private reinvestment. • To offset increased costs of redevelopment (i.e. contaminated site cleanup) over and above the costs normally incurred in development. • To create opportunities for affordable housing. • To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and /or operating costs of local government. C. POLICY FOR THE USE OF TAX ABATEMENT 1. When possible, Tax Abatement shall be used to finance public improvements associated with the project. The priority for the use of Tax Abatement funds is: a. Public improvements, legal, administrative, and engineering costs. b. Site preparation, site improvement, land purchase, demolition, and environmental remediation. 2. Tax abatement assistance shall be provided to the developer upon receipt of the increment by the City, otherwise referred to as the pay -as- you -go method. Requests for up front financing will be considered on a case by case basis. 3. Any developer receiving assistance shall provide a reasonable amount of cash equity investment in the project as determined by the City. The assistance shall not be used to supplant cash equity. 4. The length or term of any tax abatement assistance will be based on need for each project as determined by the City. 5. Assistance shall not be provided for reimbursement of land and /or property price that is in excess of fair market value. An appraisal by a third party, agreed upon by the City and Developer, will determine the fair market value of the land. 2 6. The Developer shall be able to demonstrate a market demand for a proposed project. Assistance shall not be granted to support purely speculative projects. 7. Business assistance shall not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects in the area. 8. Business assistance shall not be provided for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. 9. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, etc. 10. The developer shall adequately demonstrate, to the City's sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. 11. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. D. PROJECT QUALIFICATIONS All projects considered by the City of Lakeville must meet all of the following requirements: 1. The project shall meet at least one of the objectives set forth in Section B, Objectives of Tax Abatement, and satisfy all the provisions set forth in Section C, Policy for the Use of Tax Abatement, of this document. 2. The developer shall demonstrate that the project is not financially feasible but - forthe use of tax abatement. 3 3. The project must be consistent with the City's Comprehensive Plan, Land Use Plan, and Zoning Ordinances. 4. The project shall serve at least two of the following public purposes: • Creation of jobs with liable wages and benefits, per City's Business Subsidy Policy. • Increase of tax base. • Enhancement or diversification of the city's economic base. • Industrial development that will spur additional private investment in the area. • The project contributes to the fulfillment of the City's development or redevelopment objectives. • Removal of blight or the rehabilitation of a high profile or priority downtown site. 5. That the project will comply with all provisions set forth in Minnesota Statute chapters 116j.993 through 116j.995, as amended (Business Subsidies). 6. That the business assistance request complies with all provisions set forth in Minnesota Statutes chapters 469.1812 through 469.1815, as amended. E. SUBSIDY AGREEMENT & REPORTING REQUIREMENTS All developers /businesses receiving tax abatement assistance from the City of Lakeville shall be subject to the provisions and requirements set forth by state statute 116j.993 and summarized below. All developers /businesses receiving tax abatement assistance shall enter into a subsidy agreement with the City of Lakeville that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116j.993. The developer /business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and performance agreement have been met, whichever is later. Underperforming projects shall result in reduced assistance on a pro rata basis. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City of Lakeville no later than March 1 of each year for the 4 previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer /business owner shall maintain and operate its facility at the site where tax abatement assistance is used for a period of five years after the benefit is received. In addition to attaining or exceeding the jobs and wages goals set forth in the Subsidy Agreement, the applicant shall meet the qualifications set forth in Section D, Project Qualifications, of this document. Developers /businesses failing to comply with the above provisions will be subject to fines, repayment requirements, and be deemed ineligible by the State of Minnesota to receive any loans or grants from public entities for a period of five years. F. APPLICATION PROCESS 1. Applicant submits the completed application along with a nonrefundable initial application fee of $500. a. City staff reviews the application and completes the Application Review Worksheet. b. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 2. If preliminary approval is granted, the applicant submits the final application fee of $3,000. The process for creating a Tax Abatement project area, including all necessary notices, resolutions and certificates prepared by City staff and /or consultants is begun. a. Public hearing notices are published. b. Public hearing(s) on the proposed project are held. C. The City Council grants final approval or denial of the proposal. 5 Policy 1.25 BUSINESS SUBSIDY POLICY Adopted 8/1/11 1.00 PURPOSE 1.01 This Policy is adopted for purposes of the Business Subsidies Act (the "Act "), Minnesota Statues, Sections 116J.993 through 116J.995. Terms used in this Policy are intended to have the same meanings as if used in the Act, and this Policy shall apply only with respect to "subsidies" as defined by the Act if and to the extend required thereby. 2.00 POLICY 2.01 The City of Lakeville and the Lakeville Economic Development Commission maintain several policy documents which speak to the general goals and objectives for the provision of public assistance for private development or redevelopment activities. These documents include, but are not limited to the current Strategic Plan for Economic Development and the Comprehensive Land Use Plan. 2.02 The City of Lakeville has determined that in order for any project to be considered for financial assistance, a finding is needed that determines that, "but for" the City's assistance, this project will not occur or will not occur within a reasonable amount of time. The City will also need to demonstrate a return on its investment based on one or more of the public benefit categories listed in this Policy. 2.03 Because projects vary greatly in structure and public benefit derived, each project will be considered on its own merits. Consideration will be given to projects providing public benefits in one or more of the following categories: a. The creation of new jobs /increase in total payroll. In the case of new job creation, new jobs must pay an average wage equal to the minimum wage level for business assistance programs administered by the Minnesota Department of Employment and Economic Development for cities located in the seven county metropolitan area in place at the time of an application by any business seeking a subsidy. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. b. Projects that provide value in the forms of needed transportation and other utility infrastructure improvements including regional infrastructure in the community that would be completed in conjunction with the project. c. Redevelopment projects that result in the stabilization of business districts or neighborhoods by elimination of blighting conditions. d. Projects that enhance or increase the economic diversity of the community by attracting businesses or industries not currently located in the City. New job wage requirements will apply to any new jobs created. e. Projects that result in the development of affordable senior or workforce housing. f. Quality of Life based on business /projects. Those business /entities that provide a desirable good or service and address an unmet demand in the community will be considered. New job wage requirements will apply to any new jobs created. g. Retention of existing jobs. To be considered under this category, it must be demonstrated — to the satisfaction of the City - that the loss of jobs is specific and can be demonstrated. 2.04 If a particular project does not involve the creation of jobs, but is nonetheless found to meet another public purpose of the City it may be considered without any specific job wage goals, as permitted by Minnesota Statutes. This public purpose has to be something other than an increase to the City's tax base. Other measurable, specific and tangible goals must be established. Examples of tangible goals may include redevelopment or clean -up of a contaminated site or increased tourism. 2.05 Each project shall not only be evaluated against the Business Subsidy Policy but also against other applicable City of Lakeville or Economic Development Commission policies, including the Comprehensive Land Use Plan, current Strategic Plan for Economic Development. The level of assistance to be provided for any project is at the discretion of City of Lakeville. 2.06 Because it is not possible to anticipate every type of project which may in its context and time present desirable community building or preservation goals and objectives, the governing body must retain the right in its discretion to approve projects and subsidies which may vary from the principles and criteria of this Policy. The burden will be on the applicant to demonstrate, to the satisfaction of the City of Lakeville, that the public benefit justifies the requested subsidy. 2.07 In all cases of business subsidy, where the subsidy is equal to or greater than the threshold prescribed in Minnesota Statutes, a subsidy agreement will be entered into between the City and the recipient. This agreement will delineate the subsidy structure and amount, as well as the expected public benefit. The agreement will include provisions for repayment and other resolution options if the expected public benefit is not achieved. Upon completion of the project, the actual costs of the elements of the project eligible for the business subsidy will be verified. All business subsidies will be subject to the criteria outlined in Minnesota Statutes, Section 116J.933 through Section I I6J.955 except those subsidies as exempted by same. Nos UK = W - = !r � :ll: City of Lakeville Community & 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 22, 2012 Subject: Business Marketing Strategy Update The Marketing Partners group met on January 15 to discuss additional opportunities for collaborating on joint marketing efforts. Progress was reviewed on the ad spaces for the Chamber map including a Marketing Partners' ad along with several City- focused advertisements capitalizing on the "Positioned to Thrive" brand. The group also discussed a yearbook ad to be published in both North and South High School's 2013 yearbook on behalf of the Marketing Partners. The group will continue to explore additional joint marketing opportunities in the coming months. Staff is preparing to launch the social media arm of the business marketing strategy. A Lakeville Economic Development Facebook page is being prepared along with other City of Lakeville pages that will be launched in the coming weeks. This will serve as an additional way for us to reach our audiences and showcase business happenings in Lakeville. Action Requested: No action is necessary. The above is intended to be an update on the progress of the implementation of the approved Business Marketing Strategy. a - N o. - 7 City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 18, 2013 Subject: January Director's Report The following is the Director's Report for January, 2013. Building Permit Report The City issued building permits with a total valuation of $129,305,246 in 2012 which is an increase of more than $41 million over the 2011 total of $87,647,849. The City issued commercial and industrial permits with a total valuation of $10,121,500 in 2012 compared to a total valuation of $17,774,000 during 2011. The 2011 total included the new Walmart Store that opened October of this year. The largest increase has been in the number of single family home permits in 2012. The City issued permits for 279 single family homes in 2012 with a total valuation of $83,548,000. This compares to 118 single family home permits in 2011 with a total valuation of $36,258,000. This is an increase of over 160 single family permits this year with an increase in value of $47.3 million over 2011. The City also issued a permit for the 101 unit Kingsley Shores senior housing project in 2012 with a value of $8.3 million. Open to Business Program Update Adam and I met with Laurie Crow who has been the person hired for the new Open to Business program that is being rolled out in Dakota County Cities this year. The Open to Business program will provide loans to start -up and small businesses up to $25,000 and larger loans /packages are available for established businesses. Open to Business will also provide technical assistance to persons looking to start or expand their business. Regular office hours will be established in City Hall one day a month and Laurie will be available for appointments outside of the regular office hours. A kick -off event for this program is planned for February 28th at the Burnsville Performing Arts Center and more information will be forwarded to the EDC when it is available. Staff is working on a number of different ways in which this program will be marketed in the Community including collaborating with the Chamber of Commerce. Laurie will be meeting with the Chamber Executives in Dakota County in the near future. Spotlight on Business QA1 will be spotlighted at the January 22 " City Council Meeting. EDC Member Glenn Starfield will be presenting the information on the company. QA1 is a manufacturer of high performance parts for the automotive racing industry and is experiencing significant growth in their business. A copy of the information that was provided to the City Council is attached. Foreclosure Update Included in your packet is the 2012 Year End Review Foreclosure Report from the Dakota County CDA. In 2012 there were 220 Sheriff Sales in Lakeville compared to 284 in 2011. This is a 22.5% reduction from the previous year and corresponds with a 23.1 % reduction in Sheriff Sales County -wide in 2012. County -wide, the number of Sheriff Sales in 2012 were the lowest since 2006. January 18, 2013 Item No. Spotlight on Business QA1 January 22, 2013 City Council Meeting Overview QA1 specializes in providing performance shock absorbers, rod ends, spherical bearings, struts, springs, ball joints and other related items to a variety of markets including: circle track racing; drag racing; street performance; street rodding; construction, fitness and packaging equipment; as well as several other industrial markets. Located on Hanover Avenue in the Airlake Industrial Park, the QA1 headquarters currently has over 65,000 square feet containing everything from sales and marketing, research and development, to complete production and quality control operations. Started in 1993, QA1 now holds the position of supplying the majority of rod ends and spherical bearings to the automotive racing market. They are also the largest performance shock absorber manufacturer in North America producing 100,000 units /year here in Lakeville. QA1 has worked with and acquired a number of companies over the years to become the industry leader they are today. As they continue to grow and expand they aim at doubling sales every 4 -5 years. Because research and engineering are done locally, QA1 continues to bring in new equipment, employees and processes. They are currently testing some high -end carbon fiber technology that will continue to bolster the products they can provide to their customers. With over 6,500 SKU's they supply product to customers both domestically and across the world. QA1 currently employs 50 people and continues to grow as they expand their markets. A spring building expansion is currently in the works to accommodate this growth. Adam Kienberger Economic Development Specialist Financial Impact: $ 0 Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: nnna �n �� aa- �5nnn�ydoa�_ ro� n o �• S n CD 0 P° o w oo (D r. c a n w p o 0 0£ a e CD ct o ? o n c n n w n< n a n x C@ a oo a w Q L y 0 n 0 x a c y n cc cD 3 0 0 O d A� CD CD n 7' 0 0. 70 'T. a O n w ( r D ao `n o o ° = G ;� o a ay' a° o R a o w a (D v' .. y a. '°_ 0. O. f v n K y ( r D �. 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N N ' PO N ? �O J �c 00 �c 10 Q O w vt A O O C O O O O C O O O C O O O O C O O O C O O O O C O O 0 0 0 0 0 0 0 0 0 0 T N 00 O N Ct W O O U 00 00 W N t O w w A J 00 O O C� A W N t.A 00 is O O O ON A W W W T C C N to w C O N = O O O O O O O O O O O C O O O O O [Pig Dakota County Community Development Agency CDA To: Dakota County Cities From: Lisa Henning Date: January 16, 2013 Re: Foreclosure Update HOME OWNERSHIP 2012 Year End Review The following charts show a quarterly comparison from 2011 to 2012 of Sheriff Sale and Notice of Pendency numbers in Dakota County. Sheriff Sales Quarter # of Sales 2011 # of Sales 2012 Percent Change January-March 513 417 - 19 April June 554 413 -25% July- September 451 358 -21 October - December 467 337 -28% Total 1,985 1,525 -23% Notices of Pendency Quarter # of NOPs 2011 # of NOPs 2012 Percent Change January-March 840 813 -3 April June 627 713 + 14 July- September 718 606 - 16 October - December 1 774 1 572 -26% Total 1 2,959 1 2,704 _9 Overall, Sheriff Sales decreased by 23 percent from 2011 to 2012. Similarly, Notice of Pendency filings decreased by 9 percent from 2011 to 2012. Although foreclosures have decreased for two consecutive years, the following chart illustrates the past 10 years of foreclosure totals in Dakota County, and the fact that the 2012 number is still much higher than historic numbers. Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total # Sheriff 222 257 336 454 880 1,581 2,063 1,860 2,147 1,985 1,525 Sales I 9 Dakota County Community Development Agency CDA Dakota County Stats — December 2012 HOME OWN ER GDGZ�2.� :�L�GLG�I't/ • # of Sheriff Sales in December — 103 (compared to 164 in December 201 1) • Total Sheriff Sales for 2012 — 1,525 (compared to 1,985 Jan.- December 201 1) • # of Notices of Pendency Filed in December — 143 • Total Notices of Pendency Filed in 2012 — 2,704 A Notice of Pendency is filed by a mortgage company's attorney as official notification that the foreclosure process has begun. Not all of these result in Sheriff Sales. Mapping Using Dakota County GIS http://gis.co.dakota.mn.us/website/dakotanetgis/ The Dakota County Office of GIS is updating the 2012 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. If you have any concerns, please call me at (651) 675 -4467 or send me an email at Ihenning(&dakotacda.state.mn.us r z 4 0 C N Q 0 +� N C 0 3 O y 7+ C c � 3 h O E U CO 0 0) OO< 91 Vl d u fA d c O u d C C y 0 O U� a LA s r� L d c Ln �O O C 0 E V 0 L- 20 �n w Q O U ° v � O Y 7 tv O td C O � H E > O c v 0 E O LL co O 4J N L a t. 0 EV N E v) � 4J N o N O N "C ; . 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N N V M M t M M Ln Na�— N 00 4J = b4 U d = C > _ 4.1 _ CL CL .2 > = _ ��_°' — oNN U U J d CL C s- ( r_ r+ fA L 0 c M c 4J 3 ai Q H QmWLL= ao S. =JH�N X a� O c 75 fu N al L N H L L 0 o � 4 tv o d O V z C C � b�0 E o O N CO W V � u V L 0 � � L al a/ L � 7 O c u a) L o a) vi u L O L V C � O U Lai CL E o 41 O Oa C � c O o U IA O a! Ct i 0 O N ^� N C C RS ._ C Ou c D C b�4 al L � O E O d ea u O �z v w o L � � N b u � d c d a O d �z 4� O z� LU o z u VI c O u N c n ] C O U� d Ln s %D V1 a) C Ln 0 v O aJ — E v = O N IN Q O O � U$ v I y O Y 7 m O 3 c 3 3 c O [d IA C 1 c d O E O LL (SO) BuiIdingperiants.9 Some cities recover, others stall ZSO Townhouses have been large Single - family homes are goir e Figures for 2012 find distinct housing clusters, from consistent performers to more volatile markets. By DAVID PETERSON and SUSAN FEYDER Star Tribune staff writers Even in the worst of times, Farmington was the little city that could. It was the only south -of -the -river community remote from major free- ways that never fell below 70 new housing units per year, no matter how bad the housing crash became. Lee Smick, the city's top planner, is convinced that one reason is Farm - ington's willingness to zig while oth- ers zagged by creating compact, af- fordable lots. "We right now have an opportu- nity for 5,000- square -foot lots," she said. "We have a whole development whose lots are only 34 feet wide." With newly available full-year 2012 statistics now in hand — a year that appears to mark at least the begin- ning of the end of the housing bust — it is now possible to peer back at the bust years and compare. Among the conclusions: • Apart from Farmington, cities with fairly upscale demographics, quick freeway access, or both — like Prior Lake, Savage and Lakeville — were the most consistent perform- ers. • As the outer rings of suburbia age, and with senior housing moving to the fore, suburbs south of the river are starting to look statistically more and more like inner -ring suburbs — meaning, they rely more on multi- family projects, so their unit counts jump wildly from year to year. One inner -ring suburb, St. Louis Park, ballooned from just five new units in 2011 to more than 500 in 2012. • A number of communities are seeing steady year -to -year come- backs, even to the point of nearing or equaling pre -crash highs. Eagan, more or less fully built out, managed nearly as many units last year as in 2005 and more than 2006, although far fewer than in its heyday. • Exurbs such as Belle Plaine re- main in the doldrums, victims per- haps of a combination of volatile gas prices that make long commutes ex- pensive and lower prices in commu- nities closer in. That's one thing that makes Farmington stand out, because it, too, is practically an exurb. "It's not called `Farming- to[w]n' for nothing," Smick said. "We have lots of acres still being farmed." But it's just a few minutes' drive from ma- jor job concentrations in Eagan — a Housing continues on AM ► CHARTING THE M( In several major south -of -the straight year of increases in t Sion. Eagan Inver Grove Heights Lakeville Prior Lake Savage Sources: Met Council, 2005 -11; Keys o ° WWW.STARTRIBUNE.COM /LOCAL • SECTIC /� /J CANTHISDOME BE HOME Some cities recover, some stall 4 HOUSING FROM AA1 quicker commute than a lot of city dwellers can manage who work in the same town. Farmington's housing mar- ket, some say, also didn't get as overheated as those in some communities during the pre - recession boom. "It never had the big runup, so it didn't have as far to fall," said Steve Logan, who heads the Minnesota division of Mat - tamy Homes. He also said that homebuilding in Farmington has tended to be spread among a large number of companies, each working on a relatively small number of houses. That has kept the city on a fairly even keel. Lakeville also emerges from the crash in a strong position, one of the metro area's lead- ers at a time when Shakopee, once a competitor for that dis- tinction, has fallen far down the list. The city issued 279 single- family. permits last year, up from 118 in 2011 and the high- est total since 2004. Shakopee reported 90 residential units for 2012. Homebuilders cite Lake - ville's strong school system as an important reason for the city's relatively healthy hous- ing market, as well as commu- nity amenities such as parks. Another reason for the up- turn, in Lakeville and Prior Lake for instance, was cheap land: subdivisions that had gone into foreclosure but were snapped up by other develop- ers at fire sale prices. In Lakeville, Lennar Homes bought and began building homes on an 81 -acre subdivi- sion that had gone back to the lender in 2008. Mike DeVoe, HOW YOUR TOWN COMPA issued, by municipality: VARIABLE Apple Valley 206 67 92 21 91 228 31 39 Burnsville 214 20 34 12 69 ` 11 150 78 Parmi>ngton 198 205 145 74 78 94 143 72 MendataHeights 27 127 7 6 0 3 9 50 South St. Paul 41 82 74 8 3 65 3 7" West St. Paul 38 46 10 1 ` 2 1" 39 6 ** LITTLE ACTIVITY COMPARED TO PRE-CRASH Belle Plaine 117 58 127 7 7 8 2 6 111ko NM 89 141 51 15 ` 10 19 4 25'* Jordan 86 43 53 5 7 13 9 13 New Prague 126 88 23 6 13 8 5 21 Rosemount 454 224 143 237 88 80 53 67 Tavonships and micm , towns 317 225 134 77 60 1 32 71 NA' (Mendota, Coates:..) STEADY COMEBACK Eagan 161 119 67 30 13 33 73 154 Hastings 245 174 129 46 13 4. 22 40 Inver Grove Heights 201 84 90 118 59 13 22 40 Lakeville ` 665 444 378 416 ', 174 140 223 364 Prior Lake 220 374 116 84 62 94 106 157 Savage 255 149 191 42 61 85 103 149 SPECIAL CASE (LARGE SENIOR HOUSING PROJECT IN 2011) Lflydale 0 0 0 0 0 0 128 0« DECLINING Shakopee 669 305 187 114 344 167 119 79• Sources: Met Council, 2005 -11; Keystone, 2012; City of New Prague ' Won't be known until later in year "US. Commerce Department through November ' "Shakopee reports 90 units president of Ryland Homes, said his firm built 26 homes in Prior Lake last year on lots it bought from a bank that had taken them back from the orig- inal developer. Charlie J. Pfeffer, a sales as- sociate with Maple Grove bro- kerage firm Pfeffer Co., said another reason Lakeville has fared better than other cit- ies is that it has typically of- fered homes in a wide variety of prices, spreading its risk and not depending too heavily on one segment of the market. Lakeville has also seen some big multifamily projects, as have others. Senior housing accounted for much of the re- cent wave of multiunit hous- ing in cities like Burnsville and Mendota Heights. And that will continue: a 332 -unit up- scale apartment project be- ing planned for Apple Valley is aimed partly at empty- nesters. David Peterson •952- 746.3285 Susan Feyder•952 -746 -3282 Wells Fargo fights plan to limit street access TRAFFIC FROM AA1 members his client opposed Maguire said it was prema- Those plans now appear to the driveway closure. ture to lock in changes for the be in limbo. Eagan office has been there for Mayor Mike Maguire and road until more is known about Late last year CSM with - 10 upore nnA is ite mnet ortrup r;h7 rmmn it mcm)•u oleo -1— +- —A— 1— o oan -- *16o A..e :F ....1:. r:.. 4r - 4.U- StarTribune - Print Page StarTribune Shakopee's growth spurt comes to a dead stop Article by: SUSAN FEYDER and DAVID PETERSON Star Tribune January 13, 2013 - 7:18 AM Shakopee, for years the big dog in suburban development, has come up with a mystifying limp. The suburb, which last decade led all others by far in the growth of its population, now trails badly in the creation of new homes. At a time when other major growth centers such as Lakeville, http:// www. startribune .com/printarticle / ?id= 186637501 Woodbury and Maple Grove are charging back, Shakopee is in Jim Gehrc, Star Tribune outright decline -- the only community south of the Minnesota River where construction has sagged for two consecutive years. Its homebuilding activity in 2012 was actually less than in 2008, the year construction nationwide plummeted. The problem doesn't seem to be its location in Scott County. Prior Lake and Savage are recovering; both have surpassed Shakopee in new housing units for the first time in recent memory, according to newly available figures for calendar year 2012. The decline comes at a time of widespread concern within Shakopee about its competitive stance on a range of issues affecting quality of life. Concerns range from an increasing exasperation with flooding- induced bridge closures to so -so amenities, including a community center that many think pales beside those of nearby cities such as Chaska. City planners point to a more direct explanation: a sparse inventory of lots. "From 2007 to last year," said top planner Michael Leek, "we essentially had no new plats submitted." It's an explanation, though, that raises more questions than it answers. Builders and land brokers say the problem is the cost of building in Shakopee -- primarily land prices, but also the city's fees, a contentious issue for years and one the city is reexamining. Just last week, under fire for the size of one project's park dedication fees, the city's staff acknowledged in a memo to City Council members: "The results [of a 16 -city survey] indicate that Shakopee is among the higher rates for single - family residential and multi - family developments, and approximately $1,400 [per unit] over the average fee." Inexpensive lots are few Early in the housing bust, the experts say, Shakopee actually experienced a mini -boom as lots taken back by lenders were resold at bargain- basement prices to other developers and builders. A bunch of them from a 400 -plus home project called Countryside landed with Shamrock Companies, which bought them after the original developer went through foreclosure, said Laurie Karnes, a Maple Grove land broker. "Shamrock was really peddling those lots to other builders at pretty attractive prices," she said. "That's what was spurring the growth in Shakopee until last year." Other bank -owned subdivisions in Shakopee include Glacier Estates, where Ryland Homes has built 30 single- family homes in the past two years. Surrounding communities also are continuing to work down their supplies of bank -owned lots, but have more of them than Shakopee, said Charlie J. Pfeffer, a sales associate at Maple Grove brokerage firm Pfeffer Co. 1 of 2 1/16/2013 8:33 AM In 2008, a home under construction was surrounded by lots for sale along Hackney Avenue in a subdivision in Shakopee. StarTribune - Print Page http: / /www.startribune .com/printarticle / ?id= 186637501 "You look at Prior Lake, Savage, New Prague," he said, "and see that their bank -owned inventories are not gone. So you can buy in a neighboring city just a few miles away and get a lot for $45,000 versus $70,000 in Shakopee. People will drive a few miles for that, especially if the school district is similar." The discounts on land are even more pronounced in outlying communities such as Belle Plaine, which are still languishing, Pfeffer said. But the continued torpor in those exurbs, which were booming until gas prices soared, makes Shakopee's situation doubly puzzling: Why is it not scooping up those buyers? Builders and land brokers say that with fewer bank -owned lots available, home builders increasingly are turning to conventional landowners, who mostly aren't willing to sell at deeply discounted prices. "Shakopee was on fire for many years," Pfeffer said. "The expectations of these property owners haven't adjusted to the new marketplace." Ryland President Mike DeVoe agrees. "It's one thing to work with a lender that's taken back a parcel. It's not in the business of holding those types of assets. Some landowners want to think back to what things were like in 2004 or 2005. There's just a big gap between their expectations and what things are worth today." Why should that be any more true in Shakopee than in other places? There are hints that the nearby, casino -rich Shakopee Mdewakanton Sioux Community may be playing a role, at least on one edge of town. Landowners hope the tribe will someday swoop in and pay top bucks. "Shakopee is one of those markets that are still challenging to deal with," said Steve Logan, who heads the Minnesota division of Mattamy Homes. The company built fewer houses in the city last year than in 2011, mostly because it was finishing off the last few houses in its Riverside Bluffs. But Logan said his firm isn't actively looking for other places to build in Shakopee. "We struggled selling the last phase of Riverside Bluffs. That doesn't give us a lot of comfort going into another housing community in the same market. We'd prefer to go someplace else." Logan said his firm has been more active in neighboring communities such as Prior Lake, where the return on investment is better. "We're looking at other opportunities in the south metro," he said, "but Shakopee is not one of them." It's unlikely Shakopee will see a significant resurgence in home building, he said, until development costs -- not just land prices, but city fees -- come down. "There's a lot of large development being looked at about town these days," he said, "and to be honest, I haven't heard Shakopee mentioned in any of those conversations." Shakopee's City Council did agree last week to re- examine the city's developer fees in light of a study being done by an outside consultant. "We need to be competitive with other cities," said Mayor Brad Tabke. susan.feyder startribune.com • 952 - 746 -3282 dapeterson(a)startribune.com • 952 - 746 -3285 © 2011 Star Tribune of 2 1/16/2013 8:33 AM In Lakeville, building is on the rise - TwinCities.com http:// www.twincities.com /localnews /ci 22356725/lakeville- posts- imp... In Lakeville, building is on the rise By Marino Eccher meccher@pioneerpress.com TwinCities.com- Pioneer Press Posted: TwinCities.com The boom years are still a distant memory, but as homebuilding rebounded around the metro last year, nowhere bounced back faster than Lakeville. The city more than doubled the number of home - construction permits it issued in 2012, climbing from 129 permits in 2011 to 263 in 2012. Other metro area cities built more homes last year -- Lakeville ranked third behind Blaine and Woodbury. But among the five cities that built the most homes in 2012, Lakeville's year -to -year growth was the most dramatic. It was the city's best homebuilding year since 2006, before the subprime mortgage crisis and ensuing recession brought the housing market crashing down. Over the past few years, growth "just really slowed down to a snail's pace" as foreclosures and unsold homes flooded the market, said Brian Helvick, sales manager for Brandl Anderson Homes. "Those numbers were very, very low," said Helvick, whose company does business in Lakeville and other suburbs. "We were not adding a lot of new inventory." Last year's growth spurt is more of a catch -up for those years than a new golden age, Helvick said. At its low point, the market had about 12 homes available for every buyer. After builders slammed on the brakes and homeowners stopped trying to sell because they couldn't get the prices they wanted, that ratio swung down to about three and a half homes per buyer today, creating demand for new construction. Daryl Morey, the city's planning director, said the uptick in 2012 activity was part of a broader recovery among developing communities. He said he expects the uptick to continue into 2013 based on the number of builders who have expressed interest in development. "I'm thinking this year is going to be more of the same," he said. Homebuilding peaked in Lakeville and statewide a decade ago, when homes went up about twice as fast as they did last year. David Siegel, executive director of the Builders Association of the Twin Cities, said he's not sure if the area will see that level of activity again. But his group believes there's still room for more growth. "We're maybe halfway to where the demand really should be," he said. Still, he said, 2012's numbers were a welcome change from the preceding years. "The light at the end of the tunnel wasn't the train any more," he said. of 2 1/15/2013 4:19 PM Finance & Commerce > Print > Open to Business program expands int... http://f mance- commerce .com /wp- content/plugins /tdc- sociable - toolbar... Finance & Commerce : / /finance - commerce.com Open to Business program expands into Dakota County by Chris Newmarker Published: January 7th, 2013 The Minneapolis -based Metropolitan Consortium of Community Developers has expanded its Open to Business program into Dakota County. In recent months, the small- business financial and technical expertise program has secured $130,000 from the Dakota County Community Development Agency and a host of local governments. The consortium recently hired a former entrepreneur, Laurie Crow, to run the Dakota County program out of the county CDA's offices at 1228 Town Centre Drive in Eagan. A few Dakota County cities already have experimented with programs to provide advice and a little bit of capital for startups, but it made sense to get a program going countywide, said Andrea Brennan, Dakota County's community and economic development director. "It's more cost - effective for us to do it as a county rather than for each city to do it individually," Brennan. The consortium has years of experience in making micro -loans of up to $25,000 to startups as well as larger loans to fill the gap for small businesses seeking bank financing. It made sense for Dakota County officials to bring in Open to Business rather than try to replicate it themselves, said Rob Smolund, a small business counselor with Open to Business. Open to Business' roots go back to services that the nonprofit consortium has offered in Minneapolis for more than 20 years. Since late 2010, the program has added another 15 cities in Hennepin County. In September, it expanded into Carver County. The program might also branch into Coon Rapids by the middle of next year, depending on how talks with city economic development officials go. In suburban Hennepin County, Open to Business served 252 clients in 2012, up from 172 in 2011. The Metropolitan Consortium of Community Developers has pointed out in the past that its program allows local governments to help small businesses that might not otherwise have access to such advice. While there are plenty of economic development tools available for larger companies seeking to construct buildings, programs are scarcer for entrepreneurs. Open to Business' expansion comes at the same time that a group of area government and business leaders have started to search for a CEO to lead a seed capital fund now called Accelerate MSP. Once the fund secures capital, Accelerate MSP would make equity investments of $50,000 to $500,000 for seven to 10 companies each year. Still, Smolund suspects that Dakota County and Coon Rapids might be the last areas that Open to Business expands into for a while. Smolund thinks the program needs to follow the same advice it might give an entrepreneur. "We want to try and manage our growth properly," Smolund said. Dakota County business owners interested in the program can contact Crow at 952 - 484 -3107, or Icrow(a)mccdmn.ora. By the numbers of 2 1/8/2013 8:35 AM Finance & Commerce > Print > Open to Business program expands int... http:// fmance- commerce .com /wp- content/plugins /tdc- sociable - toolbar... Year: Hennepin County clients (outside Minneapolis) 2010: 45 2011: 172 2012: 252 Source: Metropolitan Consortium of Community Developers Complete URL: http: / /finance - commerce.com /2013/01/ open -to- business - program- expands- into - dakota- county/ 2 of 2 1/8/2013 8:35 AM Finance & Commerce > Print > Minnesota's first bus -rapid transit system nears completion Page 1 of 2 Finance & Commerce http: / /finance - commerce.com Minnesota's first bus -rapid transit system nears completion by Drew Kerr Published: December 10th, 2012 South metro officials say system spurs development in area William Branning, the chair of the Dakota County Regional Rail Authority, remembers Cedar Avenue as a fairly deserted place, with few businesses and a single bus that ran just once a day. Three decades later, the suburban corridor through Apple Valley, Burnsville and Eagan is lined with department stores, restaurants and several large housing developments. Its transformation will continue next year when a bus rapid transit system — the state's first — begins shuttling Dakota County residents to Bloomington's Mall of America, where they can connect to the region's growing transit system through the Hiawatha Light Rail Transit line. The forthcoming 16 -mile transitway was celebrated at the Apple Valley Transit Station on Monday as officials with the Minnesota Valley Transit Authority, Metropolitan Council and Dakota County prepared to begin promoting the service. The occasion also marked the debut of one of seven buses that will run on what's known as the Red Line. Designed to mimic a light rail vehicle, the $500,000 buses feature interior bike storage and low -floor boarding. Station development and street improvements being made as part of the $112 million state and federally funded project are ongoing, but the system is due to be operating as early as May. When the line is finished, buses will travel every 15 minutes between 7 a.m. and 11 p.m. on weekdays, carrying commuters from Apple Valley to Bloomington in roughly 30 minutes. Weekend and special event service is also planned, though schedules are still being worked out. For Branning, seeing the system near fruition is the realization of a long -held vision that began to emerge in the early 1980s, when transit wasn't as universally embraced. "I could see a lot of asphalt coming," Branning said. "The vision for Apple Valley was sprawl. We have a new vision now." While Cedar Avenue's redevelopment remains a work in progress, community officials say their idea of a transit- oriented community is becoming clearer as the BRT line's opening day nears. In Apple Valley, the City Council is scheduled to vote next week on final approvals needed to build a $38 million, 322 -unit, market -rate apartment proiect a half -mile east of the Apple Valley Transit Station, at 15450 Cedar Ave. A mile north, near the site of an under - construction station at 147th Street and Cedar Avenue, http: / /finance- commerce. com /wp- contentlplugins /tdc- sociable- toolbarlwp- print.php ?p =54... 12/11/2012 Apple Valley Mayor Mary Hamann - Roland, left, and Ed Kearney, president of the Apple Valley Chamber of Commerce, try out a bike rack on one of the new buses that will run on the Cedar Avenue Bus Rapid Transit line. The buses began arriving in November, and the line is due to open next spring. (Staff photo: Bill Klotz) Finance & Commerce > Print > Minnesota's first bus -rapid transit system nears completion Page 2 of 2 two 50,000- square -foot office - warehouse buildings are being completed, with plans for two more in the works. And up and down the avenue, businesses are putting money back into their properties, said Ed Kearney, the president of the Apple Valley Chamber of Commerce. "I can think of about a dozen businesses that have invested up to a half million dollars knowing that this [the transit line] was going to happen," he said. In Eagan, where the BRT will link to a station at Cedar Avenue and Highway 13, officials point to the arrival of the 400,000 - sauare -foot Paragon Outlets Twin Cities due to open in late 2014. The shopping center will take 29 of 40 city - owned acres that have sat vacant for more than a decade, and is expected to become a "regional destination," according to Gary Hansen, an Eagan City Council member who chairs the Minnesota Valley Transit Authority's board. Hansen said the city foresees more retail, a hotel or housing on the remaining developable land, though he acknowledged the timeline was uncertain. "We're anxious for development to occur," he said. "We think this is going to be a real destination in the region." More than attracting development, local proponents also see transit as a tool that can be used to draw young people back to the community. "This is about changing the dynamics of the suburb," Kearney said. "This isn't quite Uptown, but we have become Southtown." The Cedar Avenue BRT line will serve as the state's first experiment with BRT. The service is designed to mimic light rail with more efficient, regular service, limited stops and fixed station areas. Officials believe it will see 960 average daily weekday riders when it opens, and that ridership will grow to 3,650 weekday riders by 2030. The Gateway Corridor between downtown St. Paul and Woodbury could become the next BRT line in the region. Complete URL: http:/ /finance- commerce .com /2012 /12 /minnesotas- first - bus - rapid- transit- system - nears- completion/ http: // finance - commerce.com /Wp- content /plugins /tdc- sociable - toolbar /wp- print.php ?p =54... 12/11/2012 Officials unveiled one of the new buses that will run on the Cedar Avenue Bus Rapid Transit line between Apple Valley and Bloomington on Monday. The buses began to arrive November, and will go into service when the BRT line opens next spring. (Staff photo: Bill Klotz) StarTribune - Print Page StarTribune Bizbeat: Lakeville business upgrades to solar Article by: SUSAN FEYDER Star Tribune November 30, 2012 - 7:10 PM Performance Office Papers recently completed a massive installation of solar panels on the roof of its offices and plant in Lakeville. The panels are capable of generating 200,000 kilowatts of power, about 20 percent of the paper- converting company's needs, according to president Russ DeFauw. The company, founded in 1985, has a workforce of 71 at its 160,000- square -foot facility at 21565 Hamburg Av. The company takes huge rolls of paper from mills -- sometimes pre - punched and perforated -- and cuts or converts them into individual sheets for the office supply market. http: / /www.startribune .com/printarticle / ?id= 181264571 , Submitted photo DeFauw said it will take about eight years for the $750,000 project to pay for itself. Meanwhile, the company will benefit from tax breaks for investing in energy- saving equipment, including a federal investment tax credit and accelerated depreciation. DeFauw said he'd been considering the switch to solar power for several years and ultimately decided to move ahead with the project because he thinks it's consistent with the company's overall approach to sustainability. Among other things, the business recycles all its paper - product waste as well as wood pallets, plastics, cans and bottles. It also seeks to use less material in its paper- converting processes. City adopts business maintenance standards Mendota Heights is taking steps to keep commercial properties from falling into disrepair and potentially hurt neighboring property values. The City Council last week approved a new ordinance requiring owners to maintain building exteriors, including facades, chimneys, doors and windows. The measure also says exteriors can't have an "unreasonable accumulation of rubbish and garbage." The new code, scheduled to go into effect Saturday, also spells out rules for planting and maintaining trees and shrubs on commercial properties. Room for more dogs in Eagan An Eagan dog- boarding business is asking the city for permission to increase the number of pets it can handle. Wagging Tails Pet Resort has seen its business grow since opening two years ago at 3275 Sun Drive, according to owner Keith Olson. The dog -care facility occupies about 17,000 square feet of a 20,000- square -foot building and also has outdoor runs. The business is licensed for 95 dogs but would like the city to allow it to handle up to 125. A filing with the city's planning department indicates the business already has made interior and exterior renovations that would accommodate the increase in capacity. Large parcel goes on the block of 2 12/4/2012 1:54 PM Performance Office Papers in Lakeville has installed a $750,000 solar panel system at its 160,000- square -foot facility StarTribune - Print Page http:// www .startribune.com/printarticle / ?id= 181264571 An investors' group that once owned the land where Lakeville South High School now stands is selling an adjacent 39 -acre parcel and is open to proposals that would include co- developing the site. Larry Debelak, an Apple Valley resident and one of the partners, said the investors group bought the land near Interstate 35 and Hwy. 70 in 1973. About 12 years ago, the partners sold about 90 acres to the school district for the high school. Debelak said the investors have been growing corn and soybeans on the remaining land mainly to generate some cash flow. The site is zoned for office park development, according to a marketing brochure from CB Richard Ellis, which is listing it for $4.5 million. Debelak said he believes the recent opening of a Wal -Mart near the site could generate some interest in developing the parcel. Please send your Dakota County business news to susan.feyder(cilstartribune.com Susan Feyder • 952 - 746 -3282 © 2011 Star Tribune of 2 12/4/2012 1:54 PM