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03-22-13
City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director a�l Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: March 22, 2013 Subject: March Director's Report The following is the Director's Report for March, 2013. The March 26th EDC Meeting has been cancelled. EDC Members are encouraged to participate in the Envision Lakeville Community Forums scheduled over the next two weeks. More information is included below. Building Permit Report The City has issued building permits with a total valuation of $22,362,000 through February. This compares to a total valuation of $12,659,186 through February of 2012. The City issued commercial and industrial permits with a total valuation of $4,734,750 through February compared to a total valuation of $1,827,000 during the same period in 2012. The City has also issued permits for 41 single family homes through February with a total valuation of $13,064,000. This compares to 26 single family home permits through February of 2012 with a total valuation of $7,787,000. Envision Lakeville Thanks to those EDC members that were able to attend the Envision Lakeville Task Meeting held at City Hall last night. The EDC was represented by Jack, Glenn and Jim. A video that was produced by City staff was presented at the meeting along with information on demographic and home buying trends were presented by former State Demographer Hazel Reinhardt and Minnesota Association of Realtors Executive Director Chris Galler. Information on four upcoming Community Forums to be held on March 25Th and 27th and April 2nd and 4th are attached. Some of you may have already been contacted to participate in focus groups. These meetings are in addition to the Community Forums. The video will be available on the City's website and we will make it available for viewing at next month's EDC meeting. Facebook The City recently initiated a number of new Facebook sites. Please check out City of Lakeville Economic Development on Facebook. We would appreciate any feedback or comments on the type of information we have been posting. Open to Business Program Update Laurie Crow, who is the Dakota County Business Advisor for the Open to Business program, attended and was recognized at this week's State of the City and will be attending the April 26 EDC Meeting. Laurie has regular hours in Lakeville City Hall on the fourth Tuesday of each month from 1:00 to 3:00 p.m. and has been scheduling additional meetings in Lakeville on an appointment basis. City Council Actions The City Council voted unanimously to approve the Second Amendment to the Contract for Private Development for ImageTrend at their March 18th meeting. Mike McBrady made a presentation to the Council similar to the one he made recently at the EDC. The Council was impressed with the growth of ImageTrend and the number of quality jobs they are creating every year. The City Council also approved the EDC recommended policies for Tax Increment Financing and Tax Abatement that were recommended by the EDC. Approval of these policies was also included in the State of the City presentation. Development Update The former Geckler building located at 8095 215th Street (Co. Rd. 70) was sold last week to a company called IPC Inc. The company manufactures labels for the medical industry. This building was bank -owned and vacant for several years and thus it is good to have this property owned by a business again. BTD, a local metal fabrication business recently leased 100,000 square feet in the former Toro Warehouse building on Cedar Avenue. BTD already has two locations in Airlake Industrial Park. BTD is owned by the Otter Tail Power Company based in Fergus Falls, MN. The local plant manager indicated to City staff that they are continuing to expand in Lakeville because of the availability and quality of the workforce here. We are planning to do a Spotlight on Business for them in May. State of the City Address The State of the City Address was held on Thursday, March 21 It at Brackett's. The EDC was well represented at the event. For those who were unable to attend, the presentation by City Administrator Steve Mielke and Mayor Matt Little is available on the City's website and will be replayed on Cable Channel 16. Foreclosure Update There were nine Sheriff Sales in the month of February and 19 during the month of January for a total of 28 for the first two months of the year. There were a total of 220 for the year in 2012. ENVISION LAKEVILLE PAST • PRESENT • FUTURE Community Forums Help create a Future Vision for Lakeville! Where: Kenwood Trail Middle School- Kenwood Trail & 192nd When: March 25, 27, April 2, 4 Time: 7:00 - 9:00 PM What: Interactive community meeting • Facilitated Discussion • Choose from options, offer ideas • "electronic voting" technology- real time results! Four convenient nights to choose from! The City of Lakeville is seeking input on a long -term vision for the city We want our vision to reflect community values and priorities At the Community Forums you'll be asked to identify and prioritize issues and values that will guide future community decision - making Attend a Community Forum- make a difference! www.lakevillemn.gov 952 - 985 -4503 0 0 n a� 0 0 � � q• E. co o w; m' a a z B a 9 A --1 N .-+ — O 100 to O Cn p�c O 10 O 00 o w O� O O O O C ° o ° o ° o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 cn 00 LA J 0 ° o a\ W J N O O O w A c w A O O O x 0 0 0 0 � w O O O O 0 0 0 0 0 O O O O O O O O O O LA O O N w A cn O O O O O A 0 0 0 0 0 0 0. 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CJO w 00 0 0 0 0 Oo O O C O O O O OI O O IOI O O O C IOI O C IOI O C O O O O IOI O O C O O O O Dakota County Community Development Agency CD To: Dakota County Cities From: Lisa Henning Date: March 18, 2013 Re: Foreclosure Update dab HOME OWNERSHIP �Dh'�Z.QGtGO!'l� Dakota County Stats — February 2013 • # of Sheriff Sales in February — 73 (compared to 123 in February 2012) • Total Sheriff Sales for 2013 — 215 (compared to 291 Jan.- February 2012) • # of Notices of Pendency Filed in February — 134 • # of Notices of Pendency Filed in 2013 — 288 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 G C W ~ �� =W 4 z V QS 0 9 v j C 0 0 0 y > U •� tC1 � A 0 E U fl fl ca 0 00 ..Q Q V IFi' t# L. w Ln — O mEV O N a O ` — H 4J — O 3 h Y _ N LL s Vf LL N� Ln — M Ln O N a O ` — co C4 N N N _ N N— Lei N N M M N N N co ap M ' p N LA 00 1l% v N M N N N o�� c C ^ — N Z — — 0% — "O — — — — a N H 014 a M M a0 M %O %0 = N a h H O — N V*% a L N 04 OD 0 _ ^ ' M — N 0% O M 1I Ln M ^ nl '40 �O {L„ — — — ^ LA O' � N a0 O LA LA O- N N M — LA CO M v Z 41 b c .� s 2 C d � �, cd � r — o V— (d— y o > 2 ECL �= 000 ��> � C C UB L d 0 �+� � NNH •� = O JJJ C (d 4J L G� G� i� W) Q Q Q (d tv 2 >MOO = E 000 Q m W U. 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L V O L 2 0 N Q o D � U u v 0 O ° fd c O f N_ C C C d C Ll StarTrib►une Commuters head for Dakota County from just about everywhere Article by: David Peterson Star Tribune March 12, 2013 - 4:09 PM People stream into Dakota County each weekday morning from practically every single county all across Minnesota, not to mention western Wisconsin. But those who live in the county also head in surprising directions in surprising numbers — including straight south, away from the metro area's majorjob concentrations. When they do go north, they head into the west metro in far heavier numbers than the east, as anyone who has ever sat still •II UII 1 UI Cedar Avenue WIII have a Id VC UUJCI bse Yed . These are among the findings of a new analysis of county-to- county commuting patterns by the U.S. Census Bureau. The numbers depict a Dakota County that is the envy of its neighbor, Scott, in at least two ways: • The employment numbers Dakota has managed to pile up over the years, owing to freeway and airport access, among ether fu=tvr$. " The number of people who both live and work there and don't need to cross the river, a movement that funnels traffic into a limited set of corridors and creates rush -hour gridlock. "Dakota County is a substantial job center," Ruthe Batulis, president of the Dakota County Regional Chamber of Commerce, said after scanning the numbers. "As many people commute within the county to jobs as go to Hennepin and Ramsey counties combined." In contrast, from Scott, more folks head for Hennepin alone than stay within the county to work. The reaction to the numbers from Tom Wolf, Scott County's board chairman: "Looks good for Dakota County; that's our goal." But all that traveling within the county creates its own stresses and strains, Batulis noted. When "we look at the cross -county commutes, we know that we need additional capacity [especially roads] to manage those trips, now and in the future. Right now there are not good east -west roads within the county" — or at any rate free - flowing roads free of loads of stoplights — "not to mention the chokepoints going from Bumsville and Lakeville across the river." Long commutes One of the weirdest findings is how many super -long -range commutes are being reported to the Census Bureau in its surveys, which in this case cover the years from 2006 to 2010. At least one person is said to be heading for Dakota County from about 70 of Minnesota's 87 counties, including such faraway places as Roseau in the north and Watonwan in the south. Some are so far away as to raise questions whether some workers are reporting the location of a corporate home office in Dakota County, not literally a daily commute destination. Others may primarily work from home but occasionally make their way to the metro area. Ann Niebuhr, of Wells, Minn., west of Albert Lea, works for a nonprofit in St. Paul but spends most of her days in Wells. "It's nice for me," she said, "because there isn't much work in my job field in Wells, and I decided to move back to Wells to help out my family. I'm very grateful for this option because it allows me to be with my family and do a job where I can help people still. 1 still plan to come to the [Twin Cities] a couple days a week for meetings if needed." Heading south? It also seems a surprise to see so little difference between the number of folks heading into Dakota from an exurban county like Goodhue, namely Red Wing and environs, and the number driving south from Dakota into Goodhue. Red Wing being as pretty a town as it is, why, working there, would you live anyplace else? "We love it here, it goes without saying," said Patty Brown, president of the Red Wing Area Chamber of Commerce. "But some of that, at least, is the fact that with our larger companies, their upper managers often don't live here, they live in the Cities, because their spouses work in the Cities. They're coming south and the spouse is going north, and a town like Hastings is the midpoint." The same reason, no doubt, lies in part behind the huge flow to Dakota from Anoka County: thousands of people each day from a county far to the north. Random facts • Some larger outstate counties report a fair number of commuters into Dakota, including 144 from Steams — where St. Cloud is the biggest city — and 87 from St. Louis, whose county seat is Duluth. These figures do cover a period before the present -day volatility in gas prices, so they may reflect in part an earlier era of cheaper gas. But the Census Bureau also notes that in a recession, people can sometimes cover larger distances just to find work. • The Dakota -to- Dakota group, almost 100,000 commuters daily, is the third - biggest commute group after Hennepin to Hennepin and Ramsey to Ramsey. • The biggest cross - county movement is Ramsey to Hennepin, but the second - biggest is Dakota to Hennepin — more than 60,000 people. It's only slightly larger, though, than Anoka to Hennepin, also about 60,000. • The Hennepin -to- Dakota flow is about 19,000, or almost as many as Scott-to -Scott, a sign of what a draw Dakota is. • The numbers are also a reminder of what a large county Dakota is in pure square miles, and how many places it borders on. Thousands head to Dakota from just two Wisconsin border counties alone. To learn more... The spreadsheets detailing county to county commute flows can be accessed at www.startribune.com /a2110 but caution: Some are very large and slow to download and to work with, given the immense complexities of those daily movements. David Peterson • 952 -746 -3285 © 2011 Star Tribune StarTribune - Print Page StarTribune Minnesota hiring continues to gain momentum; 14,500 jobs added Article by: Adam Belz Star Tribune March 22, 2013 - 5:45 AM February capped the strongest six -month streak of job gains in Minnesota in nearly 30 years, defying fears that federal budget gridlock and a round of across - the -board spending cuts would undermine business confidence and discourage hiring. The state's employers added 14,500 jobs last month and 28,000 positions in the first two months of the year, while the Kyndell Harkness, Star Tribune Pagel of 2 unemployment rate stayed at a better - than - the - nation 5.5 percent, according to figures released Thursday by the Minnesota Department of Employment and Economic Development. Minnesota has added 50,800 jobs since the end of August, the largest half -year gain since 1984. The state has now clz back all but 1,000 of the 156,000 jobs it lost in the recession, and the remaining deficit consists of jobs in government. "We seem to have picked up a head of steam here, an upward momentum in our job growth that appears to be substar enough that we're able to weather the headwinds that our Congress is throwing at us," said Steve Hine, a state labor m economist. The United States as a whole has regained about two- thirds of the jobs it lost in the recession. Minnesota's biggest February gains were in professional and business services, a broad category that includes law, engineering, temporary help, computer and software- related jobs, accounting, architecture and management. The sector added 6,800 jobs on the month, which bodes well for the larger economy, Hine said. "Their employment depends on how well businesses are doing in manufacturing and health care and other areas," HinE "Within that sector, the temp help component is probably the most indicative of other businesses' labor needs." Minnesota outpaces national averages — with unemployment far lower than the U.S. rate of 7.7 percent. It has also emerged as a dividing line between the economic vigor of the northern Great Plains and the continued strug Great Lakes states to the east. In January, the most recent month for which data is available, Wisconsin's unemployment rate was 7 percent, Illinois' % percent and Michigan's was 8.9 percent. To the south and west, Iowa's rate was 5 percent, South Dakota's was 4.4 percent and North Dakota's was 3.3 percent "It strikes me how heterogeneous the U.S. economy is," said Pete Ferderer, an economist at Macalester College. "In a perfect world, unemployment rates would be pretty equal across states." But they're not, perhaps reflecting the fact that many people can't easily relocate to states with better work opportunitie: More than one in five mortgages across the country is still underwater, Ferderer said, so unemployment rates aren't equalizing across regions of the country the way they did during economic recoveries before the Great Recession. http: / /www.startribune.com /printarticle / ?id= 199470851 3/22/2013 Job fair in Minneapolis StarTribune - Print Page Page 2 of 2 "People are more willing to hang in there than pack up the U- Haul," Ferderer said. The hiring outlook in Minnesota has improved despite concerns over the so- called fiscal cliff and across - the -board fede spending cuts that went into effect March 1. Ferderer believes the magnitude of the impact of Washington gridlock has overstated. In Minnesota, specifically, the spending cuts will not cause severe harm. "I think for Minnesota, we're very fortunate because we're not dependent on the federal government," Ferderer said. "" would probably be one of the states least affected by that, compared to Southern California, Connecticut, Rhode Island Virginia." Over the past year, trade, transportation and utilities have added the most jobs in the state, growing by 15,200, reflectir hiring at auto dealerships, hardware stores, trucking firms and wholesale firms. The other sectors that added jobs were education and health services, adding 13,100 jobs, and professional and busint services. "It looks like it's a continuation of a trend of positive news for Minnesota's economy, especially when they revised last a unemployment rate back down," said Toby Madden, an economist at the Federal Reserve Bank of Minneapolis. Sustained job growth across several sectors of the state economy is especially encouraging, Madden said. All metropolitan areas in Minnesota have added jobs in the past 12 months. The Twin Cities were up 2.4 percent, Mankato is up 2.2 percent, Rochester is up 1.6 percent, St. Cloud is up 1.5 percei Duluth- Superior is up 1.2 percent. "The expansion we've been in for a year now looks like it's accelerating," Madden said. Adam Belz • 612 - 673 -4405 Twitter: @adambelz © 2011 Star Tribune http: / /www.startribune.com /printarticle / ?id= 199470851 3/22/2013 Just Sold: Building on market since 2010 sells in Lakeville I Finance ... http : / /fmance- commerce.com/2013 /03/ just - sold - building -on- market -si... F iNAN C E&COMMERNICE Log out Manage Account 1. � Subscribe • Home » • News » • Special Sections » • Public Notice • Events » • Marketplace » • Di Edition • Home > News > Real Estate > Just Sold: Building on market since 2010 sells in Lakeville Just Sold: Building on market since 2010 sells in Lakeville Posted: 7:10 am Fri, March 22, 2013 By Anne Bretts Tags: Airlake Industrial Park Clam Corp. David Olson Geckler Companies Goodwill Goodwill /Easter Seals Minnesota Grady Kinghorn GRI Group LLC Guardian Companies Kinghorn Construction Sandra Kinghorn Sterlin Bank Steve Stahmer Wellington Mana eig Went Wellington Management Inc. Editor's note: "Just Sold" is a Finance & Commerce feature based on certificates of real estate value (CRVs) recently filed for commercial transactions and significant residential transactions in Hennepin, Ramsey and Anoka counties as well as in counties using the state's eCRV system. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State's office, company documents, online real estate listings, F &C archives, Costar and other research. David Olson, Lakeville community and economic development director, said the sale of the bank -owned 44,378- square -foot office warehouse building at 8095 215th St. W. is the latest deal to chisel away at the city's inventory of available buildings. "My hope is that as these existing buildings are absorbed it will set the stage for new construction." (SUBMITTED PHOTO: COSTAR) 8095 215th St. W., Lakeville A private buyer has acquired a bank -owned 44,378 - square -foot office warehouse building at 8095 215th St. W. in of 6 3/22/2013 8:58 AM Just Sold: Building on market since 2010 sells in Lakeville I Finance.. Lakeville for $2.15 million. http: / /fmance- commerce. com /2013/03/ just - sold - building -on- market -si... The buyer, identified only as GRI Group LLC of Lakeville, bought the building and 2.3 -acre site from Sterling Bank of Apple Valley on March 13, according to a certificate of real estate value made public Tuesday. The price, which works out to $48.45 per square foot, is below the $2.4 million listing price and slightly above the $2.01 million market value set by Dakota County. The warehouse, built in 1977 and renovated in 2002, is part of the city's 1,500 -acre Airlake Industrial Park. It has been on the market since 2010, when the former owner, Geckler Companies, closed its school fundraising supply business and the bank took possession of the property. About 10,000 square feet is leased, but the bulk of the building remains vacant. David Olson, Lakeville community and economic development director, said the sale is another welcome sign that the recovery is thinning the city's inventory of available buildings. "Over the last couple of year there have probably been a half dozen buildings that have been bought by investors or other buyers," Olson said. "My hope is that as these existing buildings are absorbed it will set the stage for new construction." Total new construction in the city hit $129 million in 2012, up from $87 million in 2011. Of that, commercial building permits totaled $10.1 million in 2012, down from 2011, when the start of a new Walmart store helped push the figure to $17.7 million. The store opened in October. Purchase price: $2.15 million Price per square foot: $48.45 Property ID: 22- 11100 -04 -080 Date of deed: 3 -13 -13 CRV filed: 3- 13 -13; accepted 3 -19 -13 St. Paul -based Wellington Management Inc. plans to develop a two -story, 20,922 - square foot store for Goodwill/Easter Seals Minnesota at at 60th Street and Nicollet Avenue. (SUBMITTED GRAPHIC) Property: 6015/6023/6029 Nicollet Ave., Minneapolis Description: Vacant 4,579- square -foot restaurant, built in 1957 Buyer: Nicollet- Wellington LLC, St. Paul Seller: GFDFT Perkins Nicollet LLC, Guardian Companies, Carlsbad, Calif. Purchase price: $1.025 million 2 of 6 3/22/2013 8:58 AM