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04-23-13
Eke!v AGENDA Economic Development Commission April 23, 2013 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of February 26, 2013 minutes 3. Introduction of New EDC Member Joel Akason 4. Election of Officers 5. Presentation by Laurie Crow with Open to Business 6. Update on Business Marketing Strategy Implementation Activities 7. Directors Report 8. Adjourn Attachments March, 2013 Building Permit Report March 2013 Foreclosure Report from Dakota County CDA "Twin Cities builders keep up robust pace," Finance & Commerce, 3 -28 -2013 "Midwest business roared like a lion in March," StarTribune, 4 -1 -2013 "Key business group backs transit tax hike in metro (update)," Finance & Commerce.com, 4 -5 -2013 "Big job gains in Brooklyn Park, Lakeville and Edina," StarTribune, 4 -9 -2013 "Suburbs fees for parks may be skirting the law," StarTribune, 4 -14 -2013 "Plan for cereal maker includes campus greenway," Sunthisweek.com, 4 -17 -2013 1 -em No. a CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES February 26, 2013 Chair Matasosky called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Matasosky, Vlasak, Longie, Brantly, Starfield, Tushie, Schubert, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser, Ex- officio member Mayor Matt Little, Ex- officio''member City Administrator Steve Mielke. Members Absent: Comm. Smith, Emond. Others Present: David Olson, Communo.',' Economic Devel6ornent Director; Adam Kienberger, Economic Development Specialist- Mike and Valerie McBrady, Rob Novak, ImageTrend. e 2. Approval of January 22, 201I3,'meeting min Motion Comms. Tushl rantl' moved ta - approve the minutes of the January 22, 2033, meetang presented. Motion carried unanimously. y'ra x sy r r t� x'x't�r✓ 3. Review of Proposed Amendment tt1 the ImageTrend Contract for Private Development Mr. Qlsori ntroduced, W' cBtady from ImageTrend and provided background ;�,, � r r� info tiiin`=o the, regUest,regardmg the proposed amendment to the ImageTrend Contract for Private-:--Dever went. Mr. M64mdy reviewed' presentation on ImageTrend and noted that they currently employ 1� ,people with, an expected growth rate of 20% per year. They are 1 seeking an�`ension to fulfill the building expansion component of the Contract for rrr"r Private Development and ,doted that they have already more than doubled the job creation requirement of the agreement. Comm. Tushie asked x what the original goal of the City was in the development agreement, jobs or building square footage. Mr. Olson responded that the negotiated land sale to ImageTrend was predicated on both jobs and building expansion. The Contract required the creation of 21 jobs and 50,000 square feet of building expansion. To date ImageTrend has completed a 27,000 square foot expansion, and has created 46 new jobs. Comm. Tushie noted that the 27,000 square feet of office space expansion is more valuable than 50,000 square feet of warehouse space would be in the City. Economic Development Commission Meeting Minutes, February 26, 2013 Page 2 Coupled with the significant amount of high - paying jobs created, ImageTrend is well within the original intent of the development agreement. Motion Comms. Tushie / Starfield moved to recommend that City Council amend the Contract for Private Development with ImageTrend to extend the completion date of their Phase B expansion to December 31 2015. Motion carried unanimously. [Chair Matasosky abstained from the vote] 4. Presentation of the 2012 Economic Development Annual Report Mr. Olson reviewed the 2012 Economic Development Annual Report. [Comm. Vlasak excused himself from the meeting at 5:00 p.m.] 5. Update on Business Marketing Strategy Implementation Project Mr. Kienberger provided an update on the recent activities related to the implementation of the business marketing strategy. Comm. Tushie inquired about a focused approach to target markets and suggested there might be some benefit to creating a stand -alone website for economic development. Comm. Starfield noted the benefits of using a contact management client such as Constant Contact to track impacts of messaging. 6. Director's Report Mr. Olson reviewed the Director's Report and highlighted the launch of the Open to Business Program which will have office hours in City Hall the fourth Tuesday of each month from 1:00 p.m. to 3:00 p.m. Mayor Little provided an update to the EDC on the last City Council work session where they discussed commercial and industrial park dedication recommendations and the recommended TIF and Tax Abatement policies. 7. Adjourn Meeting adjourned at 5:45 p.m. Respectfully submitted by: Adam Kienberger, Recording Secretary item No. Lakeville 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: April 23, 2013 Subject: Election of Officers In line with new board and commission appointments made by the City Council on April 1 5 L, EDC election of officers will take place at this month's meeting. EDC members elected Jack Matasosky as Chair, Gary Tushie as Vice Chair and Bob Brantly as Secretary for 2012. Action Requested: Commissioners are asked to elect officers to serve the 2013 year. Lakevzlle Memorandum Item No. 5 City of LakeVMV - -- Community & Economic Development To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steven Mielke, City Administrator David L. Olson, Community & Economic Development Director Date: April 23, 2013 Subject: Open to Business Program Laurie Crow, who is the Dakota County Business Advisor for the Open to Business program, will be present at the meeting to provide an overview of the program and provide an update on the level of activity she's seen so far in Lakeville and the rest of Dakota County. 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. Action Requested: No action required. Laurie Crow will provide an overview of the Open to Business Program. O H �. d H N O �• O = , O W so N ul o � � .1�� m H t4 r= w i O i �_.. 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Olson, Community & Economic Development Director Date: April 23, 2013 Subject: Business Marketing Strategy Update As part of the Business Marketing Strategy, staff has outlined a list of proposed activities and items to focus on for 2013. These recommended implementation steps are in line with the report completed by Arnett Muldrow & Associates and will serve as a work plan for staff in 2013. Conferences, Trade Shows and Sponsorships • Minnesota High Tech Association conference (MHTA) o Minneapolis Convention Center - April 30" o Exhibitor and sponsor • Mid - America Economic Development Council (MAEDC) Best Practices Conference o Holiday Inn City Centre, Sioux Falls, SD - May 15 -17 o Conference attendee • Economic Development Association of Minnesota (EDAM) Summer Conference o Duluth, June 26 -28th o Exhibitor and sponsor • Minnesota Real Estate Journal conference sponsorship opportunities and fall economic development forum • Minnesota Commercial Association of Realtors ( MNCAR) Expo o Minneapolis - November 2013 o Exhibitor and sponsor o Other MNCAR networking events as they arise • Other sponsorship and conference opportunities as they arise that are in line with the Business Marketing Strategy Social Media /Online • Facebook economic development page o Promote new businesses and business related news o Ongoing timeframe • Website • Promote www.lakevillebusiness.com • Continued improvements and refinements to City economic development website including a new "tools" section Print • Explore working with Creative Ensemble & Marketing on an updated brochure design /content 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. Item No. -,-/ 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: April 19, 2013 Subject: April Director's Report The following is the Director's Report for April, 2013. Building Permit Report The City has issued building permits with a total valuation of $31,595,737 through March. This compares to a total valuation of $19,895,940 through March of 2012. The City issued commercial and industrial permits with a total valuation of $4,735,750 through March compared to a total valuation of $2,044,000 during the same period in 2012. The City has also issued permits for 67 single family homes through March with a total valuation of $21,010,000. This compares to 41 single family home permits through March of 2012 with a total valuation of $12,229,000. Envision Lakeville The City and its consultant have recently completed the first phase of the public involvement in the Envision Lakeville project. This included holding four community forums, seven focus group meetings, and a mailed surrey that was sent to 1200 residents. This raw data will be presented to the 14 member Visioning Task Force at their next meeting on April 24th. One of the elements of the Envision Lakeville process has been the preparation of the video on the history of Lakeville that was recently shown at the Task Force meeting. We will be able to show the video at the EDC meeting for those who have not had a chance to view it. Lakeville Job Fair The City, in cooperation with the Minnesota Work Force Center office in Burnsville, will be hosting a Lakeville Job Fair at the Heritage Center in Lakeville on April 30th. Approximately 15 Lakeville industrial park and Fairfield Business Campus businesses have agreed to participate in the Job Fair. The impetus for a local job fair began during discussions at last year's Lakeville Manufacturers Week Event when a couple of the businesses indicated that they were having difficulties attracting qualified employees. We are also coordinating with the Yellow Ribbon organization to encourage returning veterans seeking employment to attend the event. The job fair is free to the businesses and if successful, may become an annual event. City Council Actions The City Council voted unanimously to approve a Conditional Use Permit for MOM Brands to develop site improvements adjacent to their two buildings in the Fairfield Business Campus. These improvements will involve new parking lot construction, pedestrian connections between the buildings, additional landscaping and lighting and the construction of four additional rain gardens to accommodate additional storm water run -off that will be generated on their site. MOM Brands is currently completing a $4.3 million renovation of their second building (the former New Morning Windows building). All of the work for the building renovation and site improvements will be completed by the end of the summer at which time MOM Brands will be relocating 100 employees for their current corporate headquarters in Downtown Minneapolis to Lakeville. This will result in a total of 350 employees being located in Lakeville. Development Update The City Council approved the Summerlyn 1 St Addition final plat at its April 1 st meeting. This is a 36 lot subdivision being developed by Lennar Corporation north of 194 Street and west of Holyoke Avenue. The City Council also approved the Tullamore 2 " Addition final plat at the same meeting. This is a 19 lot subdivision also being developed by Lennar Corporation and is located north of 170 Street and west of Pilot Knob Road. The Planning Commission recommended approval of the Stone Ridge preliminary plat at their April 18th meeting. This is a 53 lot subdivision being developed by DR Horton located along Kenwood Trail (CSAH 50) and south of 188th Street. Foreclosure Update There were eight Sheriff Sales in the month of March in Lakeville and a total of 36 for the first three months of the year. There were a total of 220 for the year in 2012. IL 4 AMMM 0- City of Lakeville PARTICIPATING COMPANIES INCLUDE: UKAE1 JOB FAIN FREE AND OPEN TO THE PUBLIC Businesses in Lakeville are looking for qualified individuals to fill open positions. Do you have what it takes ? ?? 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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 I hen ningD-dakotacda.state.mn.us r z 0 C N E 0- O >, y C N :3 O O 0 O T U O O ca O0) OUQ : t L w E 3 H L 7 IA O u i 0 LL 4J O V 4J 0 L s N N I*� Ln — M L1 Ln O N al O� — co in N N N N C7 N— F, N N frf M N N M M N 1� 0 ` a N a0 V O t N 0% _ 0 z -- 4J u ^ h _ — _ — Ln — 4J — — N bA M 1 .O %O 7 O !r — F er C C4 C4 0% h % H O %0 Q fd N N O O% %0 M co O Un N— H 0% Op Go = �O v — I- O O M 1 Ln M M N %O %O LL N — — — 2 Ln T 1: N 00 O Ln O-. 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N N �A N M T N N CO M Ln 4 s oo V 1 c DO > 2 c Vl CL 41 „ J c-Lao amW1.2 =�EIt03U a c i �3ai ° C N Gl L N � d X O o .a Z V C �E c� N � u O L L � d L Q) d L � _ H o = c a �. L � 0 u G1 y L -0 Y L O t '0, C 02 o V d w O ✓ L O a .Ld C C u = O O U � O N � L D N 9 N 'T E >. O C d � b0 L a O 0 E N cd u O w w O w -o L d fE IA v a v o E N = W Z 0� 0 Z N w o� Z N u U d N C O . u w C C j C U� d Ln H � (D -� C Ln 0 a E U O L- x 0 tm L- 0 U u d N O N d _ ` O c (d C O E O c L C O C O LL StarTribune Suburbs' fees for parks may be skirting the law Article by: David Peterson and SUSAN FEYDER Star Tribune April 14, 2013 - 7:40 AM Twin Cities suburbs are collecting millions of dollars in parks fees from people who may never use their parks. A system designed to ensure that new neighborhoods teeming with kids have access to parkland has morphed into one in which practically anything that gets built is slapped with an add -on parks fee that can easily run into the hundreds of thousands of dollars. The idea behind these park- dedication fees, charged by cities, is that new development brings new park users, so developers should either donate land for parks or pay a fee to fund them. The extra expense to builders is passed on to buyers, meaning higher mortgages or rents. In a time when senior housing is booming in the suburbs and single - family housing has slumped, critics are questioning whether it's fair to charge all developments equally — especially when the amount some cities charge has risen, sometimes with no apparent connection to the cost of developing parks. "The average age of our residents at other similar facilities is 86," Scott O'Brien of Trident Development told the Shakopee City Council not long ago. "Given the acuity level in assisted - living units, and their age, I wouldn't say they would not ever use a city park — but they are not users of city parks." But city councils have grown used to the funds and are loath to surrender them. In one case, Edina rejected a developer's request to have the park dedication fee for a senior project reduced from $695,000 to $312,000. In a letter to city council members, Mayor Jim Hovland said: "The city needs the money and can ill -afford to give it up." Cities that set a fixed park fee for all developments are coming at it backward, according to a lawmaker who was chief author of a 2004 bill requiring a "nexus" between the fees and actual parks needs created by a new project. "It can't just be willy - nilly," said Minnesota Sen. Carla Nelson, R- Rochester. "It needs a rationale. Nothing is to be on autopilot, so to speak." Senior projects aren't the only source of complaints. Developers complain that while the value of land has shriveled, parks fees that are supposed to be based on that value are staying high or even rising. And they say cities often set their fees based not on what they need, but on what other cities can get away with charging. "In a market where you've seen taxable land values drop 50, 60 percent, you've not seen park fees drop one iota," said Peter Coyle, a Minneapolis attorney specializing in land use. City officials say it hasn't always dropped that much, and that some have adjusted rates. Eden Prairie has raised fees in recent years — its multifamily fee went from $4,100 per unit in 2006 to $5,500 in 2010, holding steady since — but that city takes credit for not raising them even more. "We're trying to stay with the market and not get too high in pricing because it has an impact on how attractive we are to developers," said Jay Lotthammer, parks and rec director. "As the market went down a few years ago we stopped increasing the rate and held the line.... As it goes up you won't see us raise them." Different uses, different rates? Commercial and industrial developments aren't exempt, either. In many places, highly automated industrial buildings are being charged as high a rate as a store or an office teeming with workers and customers. "If you build a 500,000 - square -foot warehouse that staffed by five people you shouldn't be paying the same rate as a retail complex," Coyle said. Some cities are creating tiered rates for different uses. But a survey last fall by parks staffers in Shakopee found that's more the exception than the rule. They asked 16 suburbs whether they have any special fee considerations for multifamily or senior developments, parks chief Jamie Polley told her council. Twelve didn't, and two said they don't but might consider reductions on a case -by -case basis. Polley's own position is that even a unit whose occupant never uses a park can heighten demand on parks. "Patients do have family and friends who may come to the community," she said. Critics aren't convinced the money is always used for what it's meant for. Even though cities must set parks fees aside in a separate fund, one study found that some do not bother. A slideshow presenting the study to a group of commercial developers described the situation as a "sandbox for lawyers." Developers "really feel like they're being played," Coyle said. 'They're all frustrated' Angry as they plainly are, developers — conscious of the wrench an unhappy city can throw into their plans — were reluctant to comment for the record. "I spoke to our development team and we have decided to pass on commenting on this particular topic," e- mailed Charlotte Lozier, director of marketing and communications for Shelter Corp., which develops senior projects. Kaye Rakow, director of public policy for the state chapter of NAIOP, the Commercial Real Estate Development Association, failed to find a member willing to speak out. "They're all frustrated about it," she said. "But the main reason they don't want to comment about it publicly is that they all have projects going on." For their part, some elected officials say that they're risking a slippery slope in granting concessions to certain users. "A lot of fixed- income seniors are paying school taxes even though they have no kids in school," said Shakopee Council Member Matt Lemann. "A lot of people pay for parks that don't use them. It's a collective whole." Some cities, however, have made changes. Lakeville, a hot spot for senior projects and home building recently, charges just 25 percent of the standard fee for assisted - living units, and memory-care units are charged nothing. Last year, the city cut park dedication fees for residential projects by 25 percent to keep the charges in line with land values. But the city hasn't budged on charging its usual rate to commercial and industrial developments, even though it knows some developers say the users of those properties don't benefit from parks. "We know that's a topic that gets debated," said Dave Olson, the city's economic development director. dapeterson @startribune.com " 952- 746 -3285 susan.feyder @startribune.com • 952 - 746 -3282 0 2011 Star Tribune StarTribune - Print Page StarTiribune Big job gains in Brooklyn Park, Lakeville and Edina Article by: Jim Adams Star Tribune April 9, 2013 - 11:30 PM Brooklyn Park and Lakeville, historically Twin Cities bedroom communities, have led similar -sized suburbs in job growth for the past two years, state employment records show. From September 2010 to September 2012, the two cities each saw an 11.5 percent increase in jobs, according to the latest state quarterly jobs report. That was almost four times the metro average and is the largest percentage increase among 14 cities with populations of 50,000 or more. Jim Adams , Star Tribune Blaine placed third with a 7.9 percent job gain, followed by Minnetonka and Edina. Officials in Lakeville, Edina and Brooklyn Park attributed the upward trend to handy freeway access, reuse of existing business space, and ciiy financial Incentives to help local i ms expand and to attract new businesses. An 11.5 percent jump is "pretty impressive growth," particularly when compared with the 3 percent jobs gain in the seven - county metro area over the same period, said Kyle Uphoff. He is regional analysis manager for the Minnesota Department of Employment and Economic Development (DEED), which produces the quarterly jobs reports. Edina gained the most jobs in actual numbers, adding 3,285 workers in the past two years. It was followed by Minnetonka with 3,257 jobs, Brooklyn Park with 2,769, and Eagan with 2,768. Lakeville added 1,555 jobs. Egan Companies is one reason for Brooklyn Park's job growth. But a few years ago, the commercial builder and fabricator almost moved its 200 - employee headquarters elsewhere, said Greg Koetz, Egan's facilities director. Koetz said he had been fighting City Hall over zoning rules against outside storage for about eight years. Two years ago, he hired a real estate broker to find Egan a new location that allowed outdoor storage. The broker told Brooklyn Park officials that more companies might rent vacant buildings in business parks if the city allowed outdoor storage in business park zones, where Egan's plant is located. "The city moved from a position of holding its ground to listening and being cooperative and trying to figure out a solution," Koetz said. "Together, we came to a solution that worked for both of us." City staff proposed a rule change, approved by the City Council almost a year ago, to ease the restrictions. The rule allows any business park property of at least 5 acres to have outside screened storage space of up to 15 percent of its building footprint, with a 125 -foot setback from the road. That gave Egan 17,000 square feet of outdoor storage, Koetz said. "We are trying to build a better business climate and remove some barriers," said community development director Jason Aarsvold. The city's current daily workforce of 26,756 jobs is a new high, he said. The 2,769 jobs added in the past two years mostly filled existing space, he said, although Target is currently building two nine -story towers on its Hwy. 610 campus. "We were able to reuse a lot of existing buildings," Aarsvold said. "The density of jobs increased in existing buildings." For example, a warehouse was turned into a manufacturing facility with a gain in jobs, he said. Brooklyn Park's biggest gains in the past two years were in the health care and social assistance sector, with 940 jobs, said DEED's Uphoff. The city of about 77,000 people also saw roughly 500 jobs gained in each of three other sectors: manufacturing, construction and corporate management. Aarsvold said major freeway improvements in recent years, such as the new Devil's Triangle interchange on Hwy. 169 and the Hwy. 610 extension, also helped attract new businesses. The city has loan funds available for start-ups and businesses that remodel vacant buildings, he said. Greg Koetz. facilities director of Egan Companies. faced a hurdle with the Brooklyn Park City Council about outdoor storage space for the commercial building company. But the city revised its business park zoning rules to permit a certain amount cf outside storage. Egan had begun to look for a new location before the city altered its storage regulations. Gains in Lakeville Some of Lakeville's gains were linked to the County Road 70 interchange that opened in 2009 on Interstate 35, said Dave Olson, community development director for the city of 56,440. A new Wal -Mart sprang up nearby, bringing 300 full- and part-time jobs to town, Olson said. The city helped ImageTrend expand and add 46 jobs since 2009 by selling city land at a steep discount to the software developer, he said. Uphoff noted that Lake- ville's biggest gains were 475 jobs in the leisure and hospitality industry and 419 in manufacturing. Edina's big job jump of 3,285 was paced by more than 1,900 new jobs at insurance companies and 1,100 in health care, Uphoff said. Edina's medical district around Fairview Southdale•has added jobs at small and larger firms in recent years, partly to serve an aging population, said Bill Neuendorf, economic development manager. He noted that the recent remodeling of Southdale Center also created hundreds of jobs. All While Edina is fully developed and has several thousand more jobs than its 49,000 residents could fill, most residents in Brooklyn Park and Lakeville go to work in other cities, officials said. "Our goal," Olson said, "is to create more quality jobs so people can live and work here." Jim Adams " 612 - 673 -7658 C2011 Star Tribune Finance & Commerce > Print > Key business group backs transit tax hike in metro (update) Page 1 of 1 rinance & commerce ://Tlnance-commerce.com Key business group backs transit tax hike in metro (update) by Drew Kerr Published: April 5th, 2013 The Minneapolis Regional Chamber of Commerce is backing a sales tax increase that would help pay for transit expansion in the metro. The chamber said Friday its board of directors supports Gov. Mark Dayton's proposed tripling of the 0.25 percent metro area sales tax that pays for transit. If approved, the sales tax increase would generate an estimated $791 million for transit through 2017. The money would support transit in Hennepin, Ramsey, Washington, Dakota, Anoka, Scott and Carver counties. File photo Transit supporters hope the money will help the state pay its share of the $1.3 billion Southwest Light Rail Transit line. The chamber says its support of the metro area sales tax increase is "contingent on lawmakers limiting other tax increases on businesses." In the statement, Minneapolis Regional Chamber President Todd Klingel said businesses "know firsthand how important transit is to their companies and employees." The St. Paul Area Chamber of Commerce and the TwinWest Chamber of Commerce have yet to take a position on the proposed sales tax increase. Dayton's tax pitch is one of three funding proposals that have been introduced. Comprehensive transportation funding bills are expected to emerge from House and Senate committees this month. Complete URL: http:// finance - commerce.com/ 2013 /04 /minneapolls- chamber- backs - transit- tax - hike -for- metro/ http: / /finance- commerce .com /wp- contentlplugins /tdc- sociable - toolbar /wp- print.php ?p =59165 4/8/2013 StarTribune - Print Page StarTribune Midwest business roared like a lion in March Article by: Dee DePass Star Tribune April 1, 2013 - 9:20 PM Midwestern businesses roared in March as new orders for manufactured goods delivered the biggest monthly increase in 15 months, according to a Creighton University manufacturing survey released Monday. The report proved a boost for the Midwest and Minnesota, especially when compared to a national study Monday that showed slowing growth for manufacturers nationwide. Minnesota logged its fourth consecutive month of growth. Results were driven by an uptick in new product orders, sales, delivery lead times, employment and inventory use. Demand was strongest for metal goods, machinery and agricultural equipment products, according to the report. Results boosted Minnesota's "business conditions" index to 55.2 in March from 52 in February and contributed to the rise for the entire nine -state region. Index figures above 50 indicate growth while those below 50 show contraction. The full Mid - America Business Conditions Index leapt to 58.2 from 53.1 in February for the region including Minnesota, Iowa, South and North Dakota, Arkansas, Oklahoma, Nebraska, Missouri and Kansas. "This is the largest one -month jump that we have recorded since January 2012," said Ernie Goss, author of the report and director of the Creighton University Economic Forecasting Group. "We will have to record several consecutive months of readings like this to be confident that the regional economy is picking up steam." But for now, he said, "our survey results point to an upturn in regional job growth in the months ahead." Most of the March increase was the result of a jump in new orders, he said. In a surprise finding, about 76 percent of supply managers surveyed by Creighton University said they were not affected by the federal "sequestration" budget cuts that started to go into effect March 1 after Congress failed to produce a budget compromise. Another 23 percent of respondents reported "only modest impacts" from the government budget cuts. Page 1 of 2 http:// www .startribune.com /printarticle / ?id= 200975811 4/2/2013 Zach Koski. an unracking supervisor at Hardcoat Inc. ii Louis Park, was hired in February. Heidi Orr assembled a diaphragm pump used in the fo( industry at Graco's Minneapolis plant. StarTribune - Print Page In contrast, surveys taken in February indicated significant concern by a third of manufacturers who worried that the $85 billion in federal budget cuts could hack into government supply contracts. So far, that hasn't been the case. Business confidence levels rose across the Midwest in March, the report said. That may not be so surprising, since in recent months Toro, Graco, Polaris Industries, Donaldson Co. and a host of other metal product and machine makers have either reported sales increases or boosted sales projections. Yet the strong Midwest showing stood in contrast to a muddled national report issued Monday by the Institute for Supply Management (ISM). In that report, manufacturers signaled that operations continued to grow, but at a slower rate. While 14 of 18 manufacturing sectors grew, March's ISM index dropped to 51.3, from 54.2 in February. Economists were expecting 54.0. Employment, exports and backlogged orders rose in March, but new orders and prices fell. Page 2 of 2 Nationally, growth was particularly strong for wood and plastic products, electrical equipment and appliances, fabricate( metals, paper and clothing goods. Weakness was seen in petroleum and coal products, chemicals and machinery. Ward McCarthy, managing director and chief financial economist at Jefferies & Co. Inc. in New York, said the March re; is the weakest since December, while the February reading was the highest since July 2011. "This month's data is not all that encouraging when taken on its own," McCarthy said in a note to investors. "But ... we the downtick as a momentary pause in the overall uptrend in the manufacturing sector." He said other data suggests th manufacturing sector is regaining momentum lost over the second half of 2012 due to concerns over the fiscal cliff. "It's a mixed picture," Guy LeBas, chief fixed- income strategist at Janney Montgomery Scott in Philadelphia, told Bloom News. "It highlights the downside of reduced government spending but underscores a fairly stable private sector." Dee DePass • 612 - 673 -7725 © 2011 Star Tribune http:// www .startribune.com /printarticle / ?id= 200975811 4/2/2013 Toro engineers tested a commercial tractor at the comb Bloomington facility. Twin Cities builders keep up robust pace I Finance & Commerce http : / /finance- commerce.com/2013 /03 /twin- cities - builders - keep -up- rob... FiNANcE&COMME Log out I Manage Account Ruh-wribe • Home • News >> • Special Sections » • Public Notice • Events » • Marketplace » • Digital Edition • Home > News > Construction & Development > Twin Cities builders keep up robust pace Twin Cities builders keep up robust pace Posted: 4:16 pm Thu, March 28, 2013 By BRIAN JOHNSON Tags: Builders Association of the Twin Cities construction permits Curt Christensen Daryl Morey homebuilders housing market Julie Hultman Lee Lynn Construction McGraw -Hill Construction Minneapolis Area Association of Realtors Oak Park Heights Pamela Belz Presbyterian Homes and Services Senior Housing Partners Waters Senior Living A 62 -unit senior rental building is rising up at 13945 Upper 58th St. in Oak Park Heights. Although the building is well under construction, the project is reflected in the March building permit numbers. (STAFF PHOTO: BILL KLOTZ) Single- family fuels sharp rise in March permits Despite the cool weather, residential construction continues to heat up in the Twin Cities, which saw a 53 percent increase in permits for new single - family homes in March compared with last year. However, with no blockbuster multifamily projects permitted in the past month, the total number of planned housing units resulting from those permits was down slightly compared with March 2012. So far in March, cities in the 13 -county metro area have issued 358 permits for 525 new housing units, compared with 235 permits for 532 units in March 2012, according to the Keystone Report. The combined value is $131 million, up from last year's $82.9 million. of 5 4/2/2013 8:18 AM Twin Cities builders keep up robust pace I Finance & Commerce http : / /finance- commerce.com/2013 /03 /twin- cities - builders- keep -up- rob... Pamela Belz, 2013 president of the Builders Association of the Twin Cities, said rising home prices, shrinking inventory of existing homes for sale, and fewer new foreclosures are among the driving forces. "Our builders are very happy about the activity they are seeing," said Belz, project developer with Senior Housing Partners, a division of Presbyterian Homes and Services. So far in 2013, residential permits are up 60 percent and total planned housing units are up 9 percent compared with the same period a year ago, according to Keystone. Other industry sources also point to a recovering homebuilding market. In February, residential construction starts increased 32 percent in the Twin Cities over 2012 levels — including houses and apartments, according to numbers released this week by New York -based McGraw -Hill Construction. Still, overall construction starts were down 24 percent in February, including a 62 percent decline in nonresidential construction, which includes commercial and manufacturing structures, schools, hotels, and other building types, McGraw -Hill said. Pending sales of existing homes in the Twin Cities grew by a modest 2 percent in February compared with February 2012, according to the Minneapolis Area Association of Realtors. Real estate watchers attribute the slower uptick in pending sales to a shrinking inventory of existing homes. Many homes that are on the market are receiving multiple offers. Curt Christensen, owner of Lee Lynn Construction in Watertown, said his phone has been ringing steadily throughout the month. One of the calls he received this week was from a homeowner whose house was put on the market in the morning and had two offers — over the listed price — by the end of the day, he said. As the market heats up, lots are becoming scarce and prices are rising. The shortage of lots is "getting worse by the month now," said Christensen, a past president of the BATC. In March, Minneapolis led the metro area in total planned housing units. The city had seven permits for 96 units, including the 90 -unit, $21.4 million Waters Senior Living assisted living project at 50th Street and Beard Avenue. Oak Park Heights had five permits for 61 new housing units, according to Keystone. Julie Hultman, a planning official for Oak Park Heights, said the only residential housing project of note in that city is Stonebridge Construction's 62 -unit senior rental building under construction at 13945 Upper 58th St. near Highway 36 and Oakgreen Avenue. More construction may be on the way, however. Stonebridge is interested in building a memory care addition to an existing assisted living facility near the new construction, she said. That project could go before Oak Park Height's planning commission in May, according to Hultman. Oak Park Heights is largely built out, but Hultman said handful of vacant commercial and residential properties may be available after construction of the new bridge over the St. Croix River between Oak Park Heights and St. Joseph, Wis. "I think once the bridge gets squared away, there are some limited areas that may change," she said. More than 17,000 total apartment units are proposed or in development in the Twin Cities, according to Finance & Commerce's apartment tracker About 2,440 have completed since fall 2011. Unlike last year, no single multifamily project stood out in March. Unit numbers in March 2012 got a big boost from a 286 -unit apartment - retail project now under construction at 222 Hennepin Ave. in Minneapolis. 2 of 5 4/2/2013 8:18 AM Twin Cities builders keep up robust pace I Finance & Commerce http: // finance- commerce.com/2013 /03/ twin - cities - builders- keep -up- rob... . Hot spots for single - family housing in March 2013 were Lakeville (32 permits, 37 units), Woodbury (24 permits, 28 units), Blaine (25 permits, 25 units), Plymouth (24 permits, 24 units), and Prior Lake (20 permits, 20 units), according to Keystone. Ten cities in the metro area issued at least 10 permits in March, up from four a year ago. Single - family numbers were strong in diverse areas, from Minneapolis to the outlying suburbs. "It's really spread out," Belz said. "All over the metro we are seeing growth." Daryl Morey, Lakeville's planning director, said homebuilding activity in Lakeville is spread evenly throughout the city. As of the end of 2012, the city had more than 500 platted and vacant lots available, he said. With memories of the housing market slowdown still fresh, the city is "a little cautious," Morey said. "But certainly the signals are very positive that we are coming out of this pretty strong." Top five cities for residential permits in March: Lakeville — 32 Blaine – 25 Plymouth – 24 Woodbury – 24 Prior Lake – 20 Top five cities for planned housing units in March: Minneapolis – 96 Oak Park Heights – 61 Lakeville – 37 Woodbury – 28 Blaine – 25 f This entry was posted on Thursday, March 28th, 2013 at 4:16 pm and is filed under Construction & Development You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed. Accent Signage shooting survivor calls for gun control (update) Mortgages a key part in CorTrust's Twin Cities expansion Leave a Reply Name (required) Mail (will not be published) (required) Website 3 of 5 4/2/2013 8:18 AM MOM at home in Lakeville I SunThisweekSunThisweek http://sunthisweek.com/2013/04/17/mom-at-home-in-lakeville/ sunthisweek.com http: / /sunthisweek.com/ 2013 /04/17 /mom -at- home- in- lakeville/ MOM at home in Lakeville By Laura Adelmann on April 17, 2013 at 10:51 pm Plan for cereal maker includes campus greenway MOM Brands' new business campus plans come complete with a big backyard. Lakeville City Council members unanimously approved a conditional use permit for the company's site proposal April 15, expressing excitement that MOM Brands is another step closer to moving its corporate headquarters from downtown Minneapolis to Lakeville's Fairfield Business Campus in 2014. Formerly known as Malt -O -Meal, MOM Brands announced last year it would purchase the former New Morning Windows building adjacent its current location at 20802 Kensington Boulevard and move about 100 corporate employees into it by 2014. Under the multi - building corporate campus design, a city permit was necessary because it does not comply with setback requirements under the original lot lines. With the change, the two buildings will function as part of a single 22 -acre lot, sharing driveways and parking with a green space situated so employees can safely walk between them. The plan eliminates a north -south parking lot drive aisle between the buildings to improve pedestrian connections, adds many new windows to the east building, which will be upgraded so its stucco finish matches the color of the west building. Dave Olson, Lakeville director of economic and community development, said the company is working on a $4 million upgrade to the east building, a former warehouse, that includes adding a second story as the company did with its west building. "They've figured out how to modify these precast concrete buildings in such a way that converts it, changes their usage," Olson said. No additional signage is planned, and all truck deliveries will use the east drive access off the Kenbridge Court cul -de -sac; Olson said the business is not expected to add much truck traffic in the area. Once completed, the total number of Mom Brands employees in Lakeville will increase to 350. Council Member Bart Davis said he was on the Planning Commission when the project was first presented. "It's great to see this project actually come to life," he said, calling it "fantastic" and "exciting to see." Mayor Matt Little thanked the company for bringing jobs to Lakeville and investing millions into the buildings. "If any of those employees would like to decrease their commute, we are building a lot of single - family homes here in Lakeville," he said. Find more stories like this one at http : / /www.facebook.com /sunthisweek of 1 4/19/2013 8:55 AM