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09-24-13
0 Lakeville AGENDA Economic Development Commission September 24, 2013 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of July 23, 2013 minutes 3. Presentation of the Recommendations of the Envision Lakeville Task Force — Allyn Kuennen, Administrative Services Manager 4. Update on Business Marketing Strategy Implementation Activities 5. Directors Report 6. Adjourn Attachments August, 2013 Building Permit Report CBRE "Minneapolis /St. Paul Industrial Marketview" Q2 2103 Positively Minnesota News Release "State Gains 12,200 Jobs in August," 9 -19 -2012 ICYMI: "State Metros Among Fastest Growing in the Nation," 9 -18 -2013 Finance & Commerce: "Fed Ex looks at Rogers for distribution center," 9 -10 -2013 Finance & Commerce: "Homebuilding heats up in August," 8 -29 -2013 StarTribune: "Real estate sales propelling economic surge in Twin Cities" .i Item No. 2� CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES July 23, 2013 Chair Starfield called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Matasosky, Akason, Vlasak, Starfield, Tushie, Schubert, Smith, Longie, Ex- officio member Lakeville Area Chamber-of Commerce Executive Director Todd Bornhauser (5:00 p.m.), Ex- officio member City Administrator Steve Mielke. Members Absent: Comm. Emond. Others Present: David Olson, Community-,& Economic Development Director; Adam Kienberger, Economic Development Specialist; Allyn Kuennen, Associate Planner; Kathy Schmidlkofer, Greater MSP; Sara Barrow, Greater WISP. 2. Approval of June 18, 2013 meeting minutes;-.. Motion Comms. Matasosky /Schubert moved to approve the minutes of the June.,, .18, 2013:: meeting. :', as presented. Motion carried unanimously. 3. Presentation by,representatives of Greater MSP Kathy Schmidlkofer and Sara Barrow gave a presentation on the Greater MSP organization -. and highlighted its, successes over the first two years. Ms. Schmidlkofer� noted that that $1 million -_of Greater MSP's $5 million budget comes from the public sector. Comm: Longie asked what Lakeville's cost would be to join Greater MSP. Mr. Olson responded that Lakeville's cost would be $25,000 per year, and that Dakota County,CDA curreiatly contributes $100,000 per year to Greater MSP. It was noted that in County, the county covers the cost for the cities within its borders. The EDC recommended talking to Shakopee about the value of being a Greater MSP member. Chair Starfield asked where the money would be budgeted from to fund the cost of membership in Greater MSP. Mr. Olson responded that liquor funds were a possibility, but other options could be explored as well. Mr. Mielke noted that during the initial discussions about becoming a member of Greater MSP, it was decided that Lakeville would pursue a marketing strategy to Economic Development Commission Meeting Minutes, July 23 2013 Page 2 help unify our internal messaging. That strategy was formulated and is currently being implemented. He also noted that in Scott County, the county continues to be an active partner (financially) in local economic development projects; something that Dakota County has not historically participated in. Comm. Tushie asked how we can leverage Dakota County to participate in a similar capacity to how Scott County works with their communities on economic development prospects. Mayor Little noted that is important to work together to market the region, but it can be difficult to determine a direct return on investment for a membership in this type of organization. Membership would give Lakeville a "seat at the table" in Greater MSP, which is something that it currently does not have. Comms. Matasosky and Tushie added that Lakeville is still refining its brand and tools for development. We need to have additional discussions on incentives how we can compete. Shakopee has built a reputation of being development and incentive friendly. Mayor Little commented that we have established these tools via our business assistance policy and would benefit by brining additional prospects to the region, which in turn would funnel to Lakeville. Chair Starfield summarized the discussion by stating that we should pursue discussions with Dakota County to explore how to model the successes in Scott County while continuing to refine and strengthen our own brand and competitive offerings. 6. Update by City Administrator Steve Mielke on Envision Lakeville Project Mr. Kuennen and Mr. Mielke provided an update on the Envision Lakeville process. "Value Statements" have been formulated and "Strategic Themes" we added at last week's meeting. The Task Force is currently working on finalized the "Key Initiatives" and will be sharing the results of the process with the City Council in August. 4. Follow -up on discussion with representative of First Park Lakeville Mr. Olson reviewed the conversation the EDC had with Grady Hamilton of Trammel Crow last month discussing the availability of TIF /tax abatement for the First Park Lakeville development. The EDC discussed the front -end costs incurred during the development of the industrial park. It was also noted that while wanting to remain competitive, each business prospect would be evaluated on its individual merits. 5. Update on Business Marketing Strategy Implementation Activities Mr. Kienberger provided an update on the Business Marketing Strategy and summarized some of the recent events staff participated in to promote economic development in Lakeville. Economic Development Commission Meeting Minutes, July 23 2013 Page 3 Mayor Little noted that the MINICAR golf tournament sponsorship offered a very strong value for the marketing dollars invested. Staff will work to follow -up on extending the value of that sponsorship and pursue it again next year. 7. Director's Report Mr. Olson reviewed the Director's Report. He noted that there will be no EDC meeting in August, and the next meeting will be to discuss the 2014 -2016 Strategic Plan for Economic Development on September 24 Motion Comms. Longie /Tushie moved recommend a meeting be held with Dakota County leadership prior to the September EDC meeting to discuss County economic development participation. Motion carried unanimously. 8. Adjourn Meeting adjourned at 6:05 p.m. Respectfully submitted by: Adam Kienberger, Recording Secretary Item No. ,3 City of Lakeville ct Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director '0i Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: September 20, 2013 Subject: Presentation of Envision Lakeville Task Force Recommendations In early 2013, the City Council retained Craig Rapp, LLC to facilitate a community visioning process. The City Council also appointed a 14 member task force drawn from diverse perspectives in the community including education, recreation /sports /leisure, the business community, seniors, youth, the development community, civic and non - profit groups and the medical and health sectors. The task force was charged with reviewing data and input from various sources including: a staff and advisory board survey, a community wide survey, four town hall forums and seven focus group meetings. The task force also considered current and future trends regarding housing, development, demographics and various potential changes that may occur in Lakeville over the next 25 years. The Task Force worked through this data and community input and with assistance from Mr. Rapp, developed the attached report titled "Envision Lakeville." This report was accepted by the City Council at their September 16th meeting. Administrative Services Manager Allyn Kuennen will be present at the September 24th EDC meeting to present the report. It is anticipated that this report will provide guidance as the EDC and City Council develops the next three -year Strategic Plan for Economic Development. With this in mind, the City has retained Craig Rapp to facilitate the completion of the 2014 -2016 Strategic Plan for Economic Development. This process will begin with the first strategic planning work session scheduled for October 8th from 1:00 - 5:00 p.m. in City Hall. EDC Members are encouraged to ask questions and provide comments on the Envision Lakeville Report. The City Council will also be discussing "next steps" for the Envision Lakeville Process at their September 23rd Work Session. ENVISION LAKEVILLE Community Vision Plan This page intentionally left blank. ENVISION LAKEVILLE Community Vision Plan Contents Transmittal Letter Vision Statement Executive Summary Community Values Strategic Priorities Key Initiatives Community Vision Process Outreach & Data References IVVISION LAKEVILLE PAST •PRESENT •FUTURE 3 4 5 6 8 10 14 16 20 I This page intentionally left blank ENVISION LAKEVILLE Mayor and City Council On behalf of the entire Envision Lakeville Task Force, we are pleased to present this Community Vision Plan report to you. The plan sets forth a vision for the future of Lakeville; it articulates a set of community values; it establishes strategic priorities; and it provides a list of key initiatives to make the vision a reality. This document represents the culmination of an effort by the City Council, Task Force and staff that began in November 2012. Over the succeeding months, more than 800 citizens from across the community generously gave their time to answer survey questions, participate in groups, offer ideas, and debate issues —all in the spirit of helping the City Council chart a future course for the City of Lakeville. For the past six months, over eight meetings, the Envision Lakeville Task Force worked to develop the plan. We reviewed data and listened to experts; we debated the impact of demographic and social trends; we interpreted community input; and we wrestled with alternative concepts of livability. Ultimately, these efforts enabled us to recommend a set of strategic priorities and long term actions that we believe will help create a better Lakeville. Thank you for the opportunity to serve, and for the chance to work side by side with a great group of neighbors and now new friends on a project of such great importance to our community. Sincerely, Envision Lakeville Task Force: Laura Beem Jeanne Hutter Grant Jacobson Cody Jones Brian Knapp Jason Mahlman Patti McDonald Ron Mullenbach Lynette Mulvihill Steven Porter Howard Schneider Tom Rice Dean Swenson Consultant: Craig Rapp LLC Craig Rapp, President Marc Hugunin Staff: Steve Mielke, City Administrator Allyn Kuennen, Administrative Services Manager It] ENVISION LAKEVILLE Envision Lakeville 2040 - Community Vision A vision offers a clear image of a possible and desirable future state. Visions come from the heart and reflect our highest aspirations. The Lakeville Community Vision Plan puts forth a Vision Statement that broadly describes Lakeville in the year 2040. The Vision Statement reflects community input, embodies community values, connects with a core purpose, and describes how the community will distinguish itself. It is a reflection of what Lakeville is, and what it can become. VISION STATEMENT We envision a thriving, multi - generational community where families, friends, and neighbors connect, live, learn, work and play. Exceptional schools; a diverse local economy; great parks, trails, and recreational opportunities; vibrant social and cultural institutions; safe neighborhoods; and responsive and cost - effective public services — together create a place we are proud to call home. r ENVISION LAKEVILLE Executive Summary The Community Vision Plan presents a vision of Lakeville's future, Access to a Multitude of Natural Amenities and a set of community values, and a list of strategic priorities for Recreational Opportunities guiding implementation. Each of the plan's key elements below W value widespread access to nature, the outdoors, and was developed based upon community input, supplemented by recreational opportunities of all kinds. research and expert testimony. Vision Statement "We envision a thriving, multi - generational community where families, friends, and neighbors connect, live, learn, work, and play. Great schools; a diverse local economy; exceptional parks, trails, and recreational opportunities; vibrant social and cultural institutions; safe neighborhoods; and responsive and cost - effective public services — together create a place we are proud to call home.' Strategic Priorities • Increase economic sustainability. • Support high quality education. • Develop a community of choice. • Cultivate a sense of community. • Provide services that add value. Community Values Diversified Economic Development We value the stability and independence provided by a strong, diversified local economy. Good Value for Public Services We value high - quality public services delivered cost effectively. Safety Throughout the Community We value living in a community where people feel safe everywhere they go. Design That Connects the Community We value a well- designed community and we place a priority on development that enhances connectivity and accommodates our changing needs. High Quality Education We value and are committed to high quality education that sets us apart. A Home for All Ages and Stages of Life We value living options for people of all ages and stages of life. A Sense of Community and Belonging We value the sense of belonging that comes from our traditions and institutions, and we strive to support and preserve them. "Our region has a rich history of strong civic engagement. But our rapidly changing cultural, business and demographic landscape brings new challenges. How well we meet the demands of these evolving challenges will determine how successful our communities will be in the next century." - Minnesota Compass.org 5 ENVISION LAKEVILLE Envision Lakeville 2040 - Community Values The foundation for Lakeville's Community Vision Plan rests upon its values. Values are defined as our most important and closely held beliefs, ideas, and concepts. They are used to filter critical decisions. Sometimes referred to as core beliefs or principles, they are the basis for vision plans and ways of operating for individuals, organizations, and communities. They are ideals shared by members of a community about what is good or bad and desirable or undesirable. Values have a major influence on behavior and attitude and serve as broad guidelines. The following are the community values for the City of Lakeville, which will be used to guide current and future City Councils as they work to make this vision a reality. The values were developed by the Envision Lakeville Task Force, with the insights and assistance of the City Council. They reflect community input — gathered and interpreted from the community survey, four citizen forums, eight focus groups, and a community leaders survey. Task Force members, representing a broad cross section of citizens and groups, also relied upon their own perspectives to forge a consensus on the final set of values. 2 ENVISION LAKEVILLE Community Values Diversified Economic Development We value the stability and independence provided by a strong, diversified local economy. In 25 years, Lakeville will have a diversified economy that provides residents with expanded opportunities to work within the City and to meet their shopping, health care, and other daily needs. A mix of industrial, office, and retail development will help to provide the tax base needed to support high quality public services. A Home for All Ages and Stages of Life We value living options for people of all ages and stages of life. Lakeville will be a community where residents can live and age in place. We will accommodate individuals and families at all stages of life. We will strive to meet the housing, transportation, education, shopping, access to health care, and other needs of all demographic groups within the City. Good Value for Public Services We value high - quality public services delivered cost effectively. The City of Lakeville has established an enviable track record of fiscal responsibility, excellent quality of services, and good val- ue for its public expenditures. Lakeville will continue to uphold these values over the next 25 years. Safety Throughout the Community We value living in a community where people feel safe everywhere they go. Lakeville residents feel safe throughout the City— in parks and on trails, in commercial areas, in neighborhoods, and in their homes. Over the next 25 years, Lakeville residents will go about their dai- ly lives confident of their safety and security. Design That Connects the Community We value a well- designed community and we place a priority on development that accommodates our changing needs and enhances connectivity. Great communities don't just happen. They're the result of thoughtful design and careful execution. Lakeville will plan an appropriate mix of housing types, a quality transportation sys- tem, and other elements that support a well- connected City with a strong sense of community. High Quality Education We value and are committed to high quality educa- tion that sets us apart. Lakeville residents came here for high quality schools more than any other reason. Lakeville will continue to attract those seeking the highest quality E -12 (early -grade 12) education, and will also offer continuing education opportunities for the lifelong learner. 7 A Sense of Community and Belonging We value the sense of belonging that comes from our traditions and institutions, and we strive to support and preserve them. Lakeville residents draw a sense of community and belonging from a range of institutions and activities that exist within the City. We highly value these institutions and activities including neighborhoods, schools, places of worship, recreation, athletics, and community celebrations. Access to a Multitude of Natural Amenities and Recreational Opportunities We value widespread access to nature, the outdoors, and recreational opportunities of all kinds. Lakeville is blessed with a multitude of natural amenities that enhance the quality of life. We will continue to provide exceptional parks, trails, recreation, cultural opportunities, youth sports, and protect the natural beauty that makes Lakeville desirable, with a strong sense of community. "The City's strengths are its schools, parks and trails, balanced /mixed land uses including commercial and industrial." - Envision Lakeville Community Focus Group ENVISION LAKEVILLE Envision Lakeville 2040 - Strategic Priorities To ensure that Lakeville's vision of a desirable future has the greatest chance of succeeding, the Envision Lakeville Task Force developed a set of Strategic Priorities to focus City Council actions. Using input gathered from community outreach efforts, the Task Force conducted a SWOT (strengths, weaknesses, opportunities, threats) analysis to understand the current environment, and to gain insight into the desires and preferences of a broad range of community stakeholders. Supplemented by research on future trends, the Task Force initially identified a set of "strategic themes;' or critical issues facing the City. Using the themes and community values as a framework, the Task Force established a set of five strategic priorities. The priorities represent the most important areas of focus for the subsequent implementation plans. M ENVISION LAKEVILLE Strategic Priorities Increase Economic Sustainability Lakeville exists within a growing interconnected region, but a successful future depends upon Lakeville being a more self - sufficient community. This will largely depend upon the City being able to attract a broad mix of economic development to support the services and daily needs desired by the community. Working diligently to secure economic development and redevelopment of all types will ensure success. Support High Quality Education Lakeville long has distinguished itself as a community that values — and delivers —a high quality education for its youth. In the future, educational achievement will be of even greater importance to the success of our families, our children and our community. Lakeville will continue to support world -class educational opportunities for our E -12 students and also for the lifelong learner. Develop a Community of Choice Lakeville has grown to a population of nearly 60,000, primarily by providing housing and amenities to families whose households are in their prime earning years. In the future, Lakeville will accommodate individuals and families at all stages of life. Lakeville will be a place where our residents can age in place. We will strive to meet the housing, transportation, education, shopping, access to health care, and other needs of all demographic groups within the City. Cultivate a Sense of Community A sense of community arises from social as well as physical infrastructure and connections. Lakeville will continue to strongly support the social institutions —such as neighborhoods, schools, places of worship, recreation and athletics, community celebrations and more —in which families, friends and neighbors connect with one another and create a sense of community and belonging. Provide Services That Add Value The City of Lakeville has established an enviable track record of fiscal responsibility, of providing excellent quality of services, and of delivering good value for its public expenditures. Lakeville will continue to uphold these values in the future. "We should accommodate diverse, multi - generational housing needs, from starter homes to senior housing, so that our kids and parents can stay in Lakeville." - Lakeville Business Owner E ENVISION LAKEVILLE Envision Lakeville 2040 - Key Initiatives A community vision plan is not an operational plan, or even a strategic plan; it is a framework for long -term success. Achieving the promise of the vision requires focus and follow - through. The Lakeville Community Vision Plan articulates a vision, sets forth community values that will be used to filter decisions, and defines the five most important priorities for community success. To provide a focus for follow -up action, the Envision Lakeville Task Force developed a list of key initiatives that should be undertaken — correlated to each strategic priority. Because the vision covers a 25 -year time horizon, the initiatives have been categorized by time periods: 1 -5 years, 6 -15 years and 16 -25 years. The initiatives are not detailed plans; rather they are broadly defined efforts that should be pursued. They provide guidance to the City Council for the development of implementation plans. 70 ENVISION LAKEVILLE Key Initiatives Increase Economic Sustainability Develop an awareness, understanding and collaboration around 1 -5 years barriers to educational success — poverty, chemical dependency, Emphasize the attraction of businesses that can provide higher mental health, domestic violence, bullying, etc. skill, higher wage, head of household jobs. Broaden awareness that success does not always mean obtaining Retain existing businesses and facilitate growth and expansion. a four -year degree. Provide a broad range of financial incentives to attract businesses that employ higher skilled, high wage jobs. Support the aggressive transportation program that is in place to enhance economic development opportunities. 6 -5 years Plan and coordinate the proper continued convergence of attraction and financial incentives for office, industrial, residential, and retail development. 6 -75 years Explore partnerships — shared services, purchasing, human resources. Develop community cultural competency. Understand how we welcome and interact with newcomers. We must be diligent and deliberate about including the entire community/all segments. Establish a continuum of educational opportunities for the entire community to accommodate all stages of life. Conduct a review of development standards in light of changing demographics to accommodate all stages of life. Bring more post - secondary institutions to the community. Incorporate re- purposing for commercial /industrial facilities in 16 -25 years long -term planning. Integrate (new) schools into City planning (buildings, staffing, programming). 16 -25 years Plan and program infrastructure upgrades to meet expanded economic development needs. Plan for demographic /population shifts (how to re- purpose old facilities). Create a comprehensive program to assist in the redevelopment of commercial and industrial properties. Support Quality Education Develop a Community of Choice 1 -5 years Identify partnerships, incentives, flexibilities to increase housing choices (55 +, workforce). 1 -5 years Collaborate on conversations related to developing and Assess existing commercial /retail areas and revise commercial/ sustaining an educational system that sets the Lakeville area retail node design and access from/to residential. apart. Develop collaborative marketing —city, schools, business, development. Work with schools to leverage common constituencies — business mentorships, seniors, and volunteers. Increase access to quality early childhood education. Promote workforce development from E -12 (early -grade 12) through post - secondary. Identify missing and /or deficient pedestrian /street connections with an emphasis on serving existing neighborhoods. Analyze park design and facilities for emerging uses and trends/ demographics to assure they adequately serve all users. Review financial options for "legacy" park acquisitions to provide uniquely "Lakeville" places. Support transit expansion extending down to County Road 70 from I -35 and Cedar Avenue to support Airlake Industrial Park (also in years 6 -15 and 16 -25). 11 ENVISION LAKEVILLE Analyze the feasibility of acquiring community parks in developing areas of the City. Study park acquisition needs with emphasis on serving different users through varied facilities for all stages of life. Improve City/downtown business association /chamber collaboration to increase awareness of and activity in downtown Lakeville. Create a plan to expand community events. Study feasibility of sanitary sewer extension to serve Farmington outlet area (with development results in years 16 -25 time frame). Support transportation including: Lane additions to I -35 to County 70 (1 -5 years) and Elko New Market (6 -15 years)- Transit on Cedar Avenue and I -35 to County 70 (1 -25 years). 6 -15 years Adopt 2018 Comprehensive Plan Amendment consistent with efforts to become a community of choice. Consider ordinance amendments for expanding housing choices and modifying commercial node design. Fund street /trail "missing links" (also years 16 -25). Acquire community parks in developing areas of City with focus on partner opportunities consistent with previous study recommendations (also years 16 -25). Address development review process to improve creative collaboration between the city and developers (also years 16 -25). Implement park acquisitions consistent with earlier studies (also continuing in years 16 -25). 6 -15 years Revisit downtown development plan to meet changing community needs. Evaluate benefits of bringing all youth sports groups together under one umbrella. Create a master plan to develop and utilize multi - purpose facilities. Collaborate with local athletic organizations to review and make recommendations on funding recreational projects (also years 16 -25). Research economic viability when adding, upgrading and removing recreational facilities and related amenities. Define the ways in which we are already bringing the community together. Identify ways to expand and support these already established groups and activities. Identify new ways in which we can bring together segments of the community. 16 -25 years Review potential for downtown preservation /improvement strategies. 16 -25 years Collaborate with local athletic organizations to review and make Develop Cedar Avenue Bus Rapid Transit corridor as opportunity recommendations on funding recreational projects. for new urban forms of development. Develop Holyoke /Highview as an important pedestrian /traffic connection though the heart of the community as a signature feature (connect downtown to north Lakeville). Fund street /trail "missing links" Develop connections to "hidden gems" like Ritter Farm Park. Cultivate a Sense of Community 1 -5 years Review potential for downtown preservation /improvement strategies. Provide Services that Add Value 1 -5 years Review operations compared to best practices /benchmarks. Establish performance measures. Assess service delivery alternatives— partnerships and privatization — implement selected alternatives. Gather and evaluate input on service quality and levels of service. Modify service levels and expectations as identified and prioritized. Consider special zoning /development standards for downtown. 72 ENVISION LAKEVILLE Evaluate and implement select cost containment strategies. Implement professional development programming. Develop key staff succession planning. 6 -15 years Evaluate physical components of the City (buildings, roads, infrastructure, technology) relative to other components of long term plan — identify alternatives and implement projects identified. Gather and evaluate input on service quality and levels of service. Determine short -term and long -term communication and engagement vehicles. Evaluate and implement select cost containment strategies. Explore entrepreneurial ways to raise revenue. Develop long -term strategy for financial viability/ credit worthiness. 16 -25 years Evaluate current staffing and core competencies relevant to long term needs. Modify service levels and expectations as identified and Implement professional development programming. prioritized. Develop key staff succession planning. As demographic patterns make workers increasingly scarce, the ability to retain and attract young, highly educated residents is key to growth. - Minnesota Compass.org ENVISION LAKEVILLE Envision Lakeville 2040 - Creating the Plan In 2012, the Lakeville City Council decided it was important to articulate a long- term vision for the community. As a prosperous, growing city with a good reputation as a place to live and raise a family, the Council wanted to ensure they maintained that reputation, and more importantly, positioned themselves to thrive. The City undertook Envision Lakeville —to articulate a vision of the community for the next 25 years. The Envision Lakeville process was conceived, led and managed by the Mayor, City Council and City staff. From the beginning, the effort was to create a community -wide vision —one that expresses the hopes and dreams of Lakeville residents and stakeholders from all walks of life, and which directs decision - making not only by the City itself but by other stakeholders throughout the community. Toward this end, the City hired Craig Rapp, LLC to develop and facilitate a visioning process and appointed a 14 member Task Force representing various sectors and interests from throughout the community. The Envision Lakeville Task Force met eight times over a six- month period, reviewed a wide range of information, deliberated, and created the Vision that is described in this report. 74 + NVISION LAKEVILLE The Visioning Process "The purpose of the visioning process is to bring people together to share opinions and ideas about what they want for the future of Lakeville" — Lakeville City Council To effectively gather the opinions and ideas of the broadest possible range of stakeholders, a multi- faceted outreach program was undertaken. The program included five elements: 1. A community survey of 1,200 randomly selected citizens, conducted by the National Research Center. 2. Four community forums offering information and facilitated discussion using "audience participation technology." 3. Eight focus groups made up of key community constituencies. 4. A community leaders survey administered to Advisory Boards and Commission members and City management staff. 5. On -going communication through the City's website and social media channels. The information gathered in the outreach process provided the foundation upon which the Envision Lakeville Task Force developed the Community Vision Plan. Using this input, the Task Force examined: • The community's strengths, weaknesses, opportunities, threats and challenges • The character, image and assets of the community • Guiding principles and core values From this effort, the Task Force developed a plan that contains four key elements: 1. A Vision Statement. This is a clear statement of what the community aspires to be in the future. 2. Community Values. These are the core beliefs and operating principles of Lakeville. 3. Strategic Priorities. These are the five most important issues that will determine long -term success. 4. Key Initiatives. These are the actions within each priority that should be the focus of community activity. ENVISION LAKEVILLE Envision Lakeville 2040 - Outreach and Data The Envision Lakeville Task Force consulted a wide range of background information, and secondary as well as primary research in its efforts to develop the City's 25 -year Vision. The City of Lakeville created a video highlighting the City's 150 -year history. Particular attention was given to the dramatic changes that have occurred over the past 25 years. This suggests that changes to the City of Lakeville over the next 25 years may be equally dramatic. The video and additional information about Envision Lakeville may be viewed at the City of Lakeville website at www.lakevillemn.gov. Primary research was conducted in the form of a broad -based community outreach process which included: a citywide mail survey, four community forums, eight focus group discussions, and a survey of City staff and advisory board members. Federal 2010 Census data compiled and provided by the Metropolitan Council was reviewed, along with the Metropolitan Council's projections of Lakeville through the year 2030 on population, households, and employment. Hazel H. Reinhart, former Minnesota State Demographer, and Chris Galler, Executive Director, Minnesota Association of Realtors, presented information concerning changes in U.S., Minnesota and Lakeville demographics and household composition. Additional demographic information was provided by Dakota County. Highlights from each of these sources follow. 16 ENVISION LAKEVILLE Community Survey The National Research Center via U.S. mail administered a survey of Lakeville residents using the National Citizen Survey model. A total of 1,200 surveys were mailed to a random sample of Lakeville residents. Four hundred and thirty-four surveys were completed, returned, and tabulated for a response rate of 36 percent. The responses were weighted such that the final sample of respondents is representative of Lakeville's overall population based on age, race and ethnicity, and housing type. In their report the National Research Center wrote: "Most residents experienced a good quality of life in the City of Lakeville and believed the City was a good place to live. The overall quality of life in the City of Lakeville was rated as "excellent" or "good" by 92 percent of respondents. Almost all reported they plan on staying in the City of Lakeville for the next five years' "A variety of characteristics of the community were evaluated by those participating in the study. The three characteristics receiving the most favorable ratings were the cleanliness of Lakeville, overall appearance of Lakeville, and the overall image or reputation of Lakeville. The three characteristics receiving the least positive ratings were employment opportunities, shopping opportunities, and ease of bus travel in Lakeville" Respondents were asked to rate the importance of a variety of community characteristics for the future success of the community. The characteristics were ranked as follows: Importance of characteristics for the City's future success 1. Quality schools 2. Safe city 3. Aesthetically pleasing 4. Environment 5. Recreation 6. Low taxes 7. Jobs 8. Open space 9. Residents can age in place 10. Shopping 11. Transportation 12. Transit 13. Welcoming of diversity Citizen Forums A series of four Community Forums were held on four different evenings in March and April 2013, with more that 100 Lakeville residents participating. The participants were asked a series of questions, and recorded their responses digitally. The results were displayed on screen and the participants were invited to discuss the results. The participants echoed the survey in expressing high levels of satisfaction with the quality of life in Lakeville. They then created their own custom lists of characteristics of the City, and ranked the importance of those factors. The results mirrored the survey in many respects, but provided a counterpoint in others. Opportunities that Lakeville should pursue over the next 25 years 1. Quality economic development 2. Technology -based business 3. Transportation 4. Manage development /preserve green space 5. Education 6. Health and wellness 7. Expand tourism 8. Manage /preserve natural resources 77 7� ENVISION LAKEVILLE Focus Groups Eight focus group discussions were held with constituencies for selected issues, while individual interviews also were held with a ninth constituent group. Each of the discussions focused on one of the following areas: • Business owners • Development community • High school students • Industrial park (Individual interviews) • E -12 education • Parks and trails • Senior citizens • Social services including the faith community • Youth sports Seven themes emerged from these discussions. 1. Support our schools. As one high school student stated, "You can't be a great place to raise a family if you keep cut- ting the schools' 2. Senior, starter and workforce housing. As one business owner noted a lack of senior housing and starter homes and said, "We want our kids and our parents to be able to stay in Lakeville.' Other business owners noted that their employees do not live in Lakeville due to a lack of work- force housing. 3. Lakeville is disjointed. Lakeville is divided among three ZIP codes, three school districts and various "pods" of de- velopment. As a result, residents' loyalties are divided and there is a lack of community spirit. 4. Small-town feel. Lakeville has a "small-town feel" that is highly valued. A historic downtown, green spaces between developed areas and "nice, friendly people" contribute to this small-town feel. 5. Economic development. Expectations were expressed for further economic development in the City, specifically contributing jobs, shopping opportunities and increased tax base. 6. Lack of diversity. Lakeville lacks diversity, and this was described as a "lack;' something missing in the life experience of the community. The Seventh Theme A seventh theme (limited government and low taxes) was derived from the survey and Community Forums. In the survey, 31 percent of respondents said that Lakeville is headed in the wrong direction. In the Forums, 23 percent said that Lakeville is headed in the wrong direction. In the case of the Forums, additional data describing these 23 percent of respondents is available. They voted similarly to other respondents on most questions but 53 percent of these participants said that local property taxes are too high, versus just 16 percent of the other respondents. Ninety-two percent of those who said that Lakeville is headed in the wrong direction reported household incomes in excess of $100,000. In the survey, 81 percent agreed that low taxes are important to the community's success. City Leadership Survey Twenty-one City employees and 34 members of City advisory boards responded to the survey. The results echoed those of the citywide resident survey. For example, the most important charac- teristics toward the overall success of the city are quality schools, a safe City and connected neighborhoods. The top priorities for the future of the City were identified as: 1. Maintaining existing parks 2. Providing diverse housing 3. Providing market rate single - family housing 4. Incentives for desirable development 5. Improve the quality of the streets 78 ENVISION LAKEVILLE Census and Demographic Data Lakeville is today (in 2013) a city of about 57,000 residents on 37.5 square miles of land, located in Dakota County, Minnesota, about 23 miles south of downtown Minneapolis. The City is described as being 60 percent developed at the present time. A quarter century ago, Lakeville's population was 17,000. A quarter century hence it is expected to have a population of approximately 85,000 as the City reaches full development. During the period from 2000 to 2040, Lakeville will grow from Dakota County's fourth largest to its largest city. According to U.S. Federal Census data: • In 2010, Lakeville is Dakota County's second fastest- growing city with 30 percent growth since 2000. • Lakeville is the county's ninth most (third least) diverse among the 12 largest cities with 10.7 percent being people of color. • Lakeville schools are the ninth most (second least) diverse among ten districts with 12.5 percent of students being of color. • In 2000 Lakeville had the ninth most (third fewest) seniors with about 1,200. By 2020 Lakeville's will have the county's fourth most seniors with almost 10,000. Households with seniors increased from 7 percent in 2000 to 11 percent in 2007 -2009. • Households with children had already declined from 58 percent to 51 percent in 2007 -2009. • Lakeville is Dakota County's wealthiest city with an annual household income of $90,000. Yet, the average Lakeville household lost $700 in purchasing power from 2000 to 2007- 2009. • Lakeville has the county 's lowest poverty rating with 2.9 percent of households below the poverty line. • Lakeville is tied for second among Dakota County cities with more than 44 percent of residents having a B.A. degree. • Lakeville's median home market value was the county's highest both in 2009 ($253,000) and 2010 ($234,000), and the City's home ownership rates lead the county at 92 (2000) or 93 percent (2007- 2009). • Housing starts in Lakeville plummeted from 1,000 in 2004 alone to about 500 (total) in the three years from 2007 -2009. However, both figures are more than double those of any other Dakota County city. • But Lakeville also had the county's third highest foreclosure rate at about 1.5 percent in 2008, 2009, and 2010. This demographic data was supplemented by presentations by former Minnesota state demographer Hazel H. Reinhart and Chris Galler, Executive Director, Minnesota Association of Realtors. Reinhart's presentation, titled "Not the World We Remember: A Changing U.S.," highlights four major trends in U.S. population: 1. Aging of the population 2. More ethnic /racial diversity 3. Income /education gap increasing 4. Changing geographic distribution Her presentation focused primarily on U.S., "macro" data but "Lakeville will not escape the major drivers of population change in the U.S.;' she said. • The U.S. median age will increase from 30 years in 1950 to 39 years in 2030, while the percentage of Americans age 65+ will increase from eight percent to 21 percent. • The percentage of households with children has already declined from 47 percent to just 29 percent in 2010. • Key implications of aging include "a shrinking ratio of workers to pensioners, and people spending a larger portion of their lives in retirement;' and "An increase in disability caused by increases in age - related chronic diseases' • America is also becoming increasing racially and ethnically diverse. In 1950, 88 percent of Americans were white non - Hispanic. Today 64 percent are white non - Hispanic. • The percentage of Americans who are foreign born has increased from five percent in 1970 to 12.5 percent in 2010. • Galler reported that 59 percent of Minnesota home buyers are age 25 to 44. Sixty -seven percent of first -time home buyers are age 25 to 34, and only 41 percent of these are a married couple. • In the U.S., 79 percent of homes are of the detached single - family type. In Minnesota, 73 percent of homes are detached single - family homes. 19 FNVISION LAKEVILLE References All final report references can be found at: www.lakevillemn.gov/ 6. Metropolitan Council — Lakeville Community Profile. Envision Lakeville. 7. City of Lakeville — Envision Lakeville video. 1. National Research Center — National Citizen's Survey of Lakeville, Minnesota. 2. Envision Lakeville — Community Forum Summary. 3. Envision Lakeville — Community Focus Group Summary. 8. Future Real Estate Issues, presented by Chris Galler, CEO, Minnesota Association of Realtors, March 21, 2013. 9. Not the World We Remember: A Changing U.S., presented by Hazel Reinhardt, Minnesota State Demographer (retired), March 21, 2013. 4. Envision Lakeville — Community Leaders Survey Summary. 5. Dakota County Demographic and Socio- economic Indicators. Presentation to Dakota County Mayors/ Managers, March 18, 2011. 20 t NVI KE � LAKEVILLE Item No. `f 5 M , 01 ! 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: September 20, 2013 Subject: Business Marketing Strategy Update Below is an update on key targets and marketing initiatives underway as part of the Business Marketing Strategy. These marketing activities are a result of the study completed by Arnett Muldrow & Associates which continues to serve as a guide to staff for pursuing new and ongoing marketing initiatives. Marketing Partners Group The Marketing Partners group consists of representatives from the City, Lakeville Area Chamber of Commerce, Lakeville Convention & Visitors Bureau, Downtown Lakeville Business Association, and ISD 194. The Partners meet regularly to discuss strategic initiatives that can be done jointly to benefit the community as a whole while promoting a single, focused message about Lakeville. The group is currently working on several joint marketing pieces along with ideas for creating a central point of information for people looking to find out what is going on in Lakeville. The group will be utilizing the results of the Envision Lakeville study to further guide their efforts and partnerships. MNCAR The City of Lakeville was the dinner sponsor at the June 25th Minnesota Commercial Association of Real Estate ( MNCAR) golf tournament at the Legends Club. Mayor Little provided welcome remarks and a pitch for commercial and industrial development in Lakeville. Sheila Longie was present representing the EDC along with staff to network with the commercial brokers and promote Lakeville. 150 commercial brokers were in attendance at this event, and staff is planning to participate in this event again next year. The annual MNCAR Expo will be held in Minneapolis on October 24th. This event allows staff to network with over 500 MNCAR professionals and foster new and existing relationships with the commercial broker community. Lakeville participated in this event for the first time in 2012. EDAM Staff attended the 2013 Economic Development Association of Minnesota (EDAM) Summer Conference in Duluth on June 26th -28 th . Lakeville was an exhibitor again this year at this conference comprised of economic development professionals, developers, engineers, architects, financial consultants, and other economic development related professions. Lakeville will continue to market itself within this professional organization throughout the year. MREJ The Minnesota Real Estate Journal (MREJ) Industrial Real Estate & Economic Development Conference is scheduled for November 15th. Staff is currently exploring sponsorship opportunities for this event. MAEDC The Mid - America Economic Development Council ( MAEDC) summer conference was held in Sioux Falls, South Dakota in May. The summer conference will be held in the Twin Cities in 2014. Staff attended this event for the first time to explore economic development marketing opportunities and establish new regional relationships. The 2014 marketing budget currently includes a line item to attend their annual winter conference in Chicago in December of 2014. Positively Minnesota The (DEED) Positively Minnesota Marketing Partners group recently hosted a panel of national site selectors of the Site Selectors Guild for a "FAM tour ". Five members of the national Site Selectors Guild were invited by Positively Minnesota to tour five regions of the state and conduct a concluding panel discussion in Bloomington to discuss their experience and perception of Minnesota as a place to locate a business. Lakeville partnered with other Positively Minnesota members Burnsville, Rosemount, and Dakota Electric to meet with and provide information to the Twin Cities site selector guest Phil Schneider of Schneider Consulting LLC. The individual meetings and networking events were followed by a panel discussion at the Radisson Blu in Bloomington. Staff will share the results of this panel discussion with the EDC at the meeting. Website /Social Media Staff is continuing to analyze and refine content on the City's Community and Economic Development Department website. Comments and takeaways from meetings with site selectors and other decision makers will continue to impact the types of information displayed there. Staff will also continue to promote business happenings and development related news via the monthly Business Bullets newsletter and Facebook. In addition to these efforts, staff will continue to explore additional partnerships and relationships that will promote Lakeville's Business Marketing Strategy. Item No. 6 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: September 20, 2013 Subject: September Director's Report The following is the Director's Report for September, 2013. Building Permit Report The City has issued building permits with a total valuation of $100,282,043 through August. This compares to a total valuation of $72,992,726 through August of 2012. The City issued commercial and industrial permits with a total valuation of $8,542,250 through- August compared to a total valuation of $8,991,500 during the same period in 2012. The City has also issued permits for 247 single family homes through August with a total valuation of $77,818,000. This compares to 162 single family home permits through August of 2012 with a total valuation of $47,191,000. Development Update United Properties is currently constructing a 6800 square foot store that they will lease to Advance Auto Parts in Hoppe Marketplace along County Rd. 50 between Culvers and NTB. The store is expected to open later this year. Boise Cascade, which has operated a building material distribution facility in Lakeville for more than a decade, recently closed on the purchase of the former CH Carpenter Lumber property located at 21575 Highview Avenue in Airlake Industrial Park. Boise's current building is an adjacent 76,000 square foot warehouse distribution center that was constructed for them in 2002. The newly acquired building will provide Boise Cascade with an additional 71,000 square feet of distribution facility space in Lakeville. On September 1st MOM Brands completed the relocation of their corporate headquarters from Downtown Minneapolis to Lakeville. In 2012, MOM Brands acquired a second building in the Fairfield Business Campus located at County Road 70 and Kensington Blvd and completed the renovation of this second building from a manufacturing and warehouse to a two -story office building and R & D facility. MOM Brands will now have a total of 163,000 square feet between their two buildings located on 22 acres. The relocation of the company's corporate headquarters resulted in an additional 100 jobs coming to the community and results in MOM Brands having a total of 350 employees in Lakeville. Meeting with Dakota County Administration City Administrator Steve Mielke and I recently met with County Administrator Brandt Richardson and Mark Ulfers, Executive Director of the Dakota County CDA and Andrea Brennan, Community and Economic Development Director at the CDA. The primary purpose of the meeting was to discuss the County's position on the use of Tax Abatement and other financial incentives used as economic development. While the County has had a policy that authorizes the use of Tax Abatement since 2002 (copy enclosed), there have not been any economic development projects in which the County has chosen to participate in a Tax Abatement. The County, with the assistance of CDA staff, will be reviewing the County's guiding principles approved in 2006 (copy enclosed) during a County Board meeting in November and the CDA is suggesting the County retain a consultant to review their economic developments strategies. Some of the issues that the County indicated that would be considered as criteria to consider financial assistance for a project would be projects that: -- -have metropolitan significance - - -we are in competition with other states - - -are "game changers" - -- benefit the public and other businesses - -- create higher wage jobs It was also concluded that the County and City would work together on developing the "pitch" for Dakota County, identify when a project meets the criteria to say yes to incentives, and to also attempt to identify and address workforce issues that may exist locally. In summary, the County will be reviewing its policies and strategies for economic development and City staff will keep the EDC informed and will discuss the input that City will provide to the County on these issues. October Meeting and Event Schedule This first strategic planning work session has been scheduled for Tuesday, October 9th from 1:00 - 5:00 p.m. at City Hall. This year's Manufacturers Event has been scheduled for Tuesday October 22 at the Holiday Inn and Suites from 4:30 to 6:30 p.m. The regular October EDC meeting will be held on Tuesday, October 29th at 4:30 p.m. Policy 8752 Economic Development Tax Abatement Pagel of 2 IMIMM Policy 8752 ECONOMIC DEVELOPMENT TAX ABATEMENT Published 4/30/02 POLICY STATEMENT The Dakota County Board of Commissioners will consider granting economic development or redevelopment abatements for properties eligible under Minn. Stat. §§ 469.1812 to 469.1815. The Dakota County Board of Commissioners will consider granting economic development or redevelopment abatements for the Following purposes: • Provide employment opportunities within the political subdivision. Dakota County includes in this category creation or preservation of private sector livable wage jobs. • Help redevelop or renew blighted areas. Dakota County includes in this category Brownfield remediation and environmental cleanup. • Help to provide access for services for residents of the political subdivision. Dakota County includes in this category creation of affordable rental and owner occupied housing. • Finance or provide public infrastructure. Dakota County includes in this category public infrastructure investment for government entities. DEFINITIONS Affordable Rental Housing: The rental housing project must meet all of the requirements for a low income housing credit under section 142(d) of the Internal Revenue Codes, regardless of whether the project actually receives housing credit. Brownfields: Abandoned, idled or under -used industrial or commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. Eligible Properties: Commercial and industrial property and residential property (including single family housing) that meets required conditions as outlined in Minn. Stat. § 469.1813, subv. 1. Livable Wage: Living wage levels that are equal to what a full -year, full time worker would need to earn to support a family of four at the poverty line ($17,690 or less as of year 2000). Low Income Rental Housing: Housing to be rented by persons whose income is at or below 50% of the area median income. SOURCE The authority for establishing this policy resides in Minnesota Statutes 469.1812 to 469.1815 Dakota County Board Resolution No. 01 -387, adopted June 26, 2001. BACKGROUND The Dakota County Board is authorized to grant an abatement of taxes imposed on a parcel of property. Under this statute the taxes are not reduced. The taxes are paid in the standard manner and then 1) rebated to the property owner, 2) reallocated to pay bondholders, 3) reallocated to pay for public infrastructure, or 4) repaid to the property owner with the agreement that they will be paid in the future. Property that is included in a Tax Increment Finance Plan may not receive an economic tax abatement. Cities, township and school districts may also grant economic tax abatements on a parcel for which the county grants it. The decision of each governmental unit does not preclude or restrict the decision of any other unit. LIMITATIONS By law Economic Development abatements have the following limitations: The County Board must find that the expected benefits to the county equal or exceed the amount of county taxes subject to the abatement agreement. The County Board will limit approved abatements to one percent of the county tax levy for that year. http://dakotanet/admin/pp_panual/genadminPohcy_8752.htm 8/28/2008 Policy 8752 Economic Development Tax Abatement Page 2 of 2 The 10 -year abatement value is granted on the land and building improvements. This per parcel limitation shall not be applicable to county owned properties. No abatement will be paid if property tax on the parcel is delinquent on the first business day, following the year when actual taxes were due. Although the county may issue bonds to fund the approved abatement, the county declines to issue bonds for this purpose unless the bonds relate to county initiated projects. EVALUATION STANDARDS The Dakota County Board shall approve tax abatements for a specific project for economic development purposes with the following being considered: 1. The extent to which the plan is compliant with Dakota County Abatement Policy, 2. The extent to which the public's interest is served. 3. The extent to which new employment opportunities provide benefits and livable wages for employees. 4. The extent to which the project creates affordable rental and owner occupied housing. 5. The extent to which the project limits costs for road construction, traffic control, law enforcement, human services and other budgetary items. 6. The extent that other local governments support the project, including but not limited to tax abatements on the subject property. 7. The extent to which other public assistance is provided to the project. State law prohibits tax abatement under this authority if the property is located in a tax increment financing district. PROCEDURES A written application to the County Board must be made to request approval of the tax abatement of the county levy. The application will include the following: 1. A general description of the project, including sizes and types of building, business type and expected use. 2. A copy of a city, town, or school board position paper regarding the abatement proposal. 3. Requests, if applicable, for County participation in the project. 4. A map or site plan showing the boundary of the project and the property identification number(s) and legal description(s) of the parcels subject to the abatement. 5. Statements identifying the public benefits of the proposal. 6. Statements relating to new traffic generated, including parking capacity, projected vehicle counts, traffic flow and pedestrian safety. 7. The total amount and type of tax abatement requested and the amount and duration of the annual abatement payments. 8. A $79 per hour fee for administrative service. Lttp: / /dakotanet/ admire /pp_ nanual/genadminPolicy_8752.htrn 8/28/2008 Dakota County Economic Development Strategy Vision We envision Dakota County as a globally competitive economy that is vigorous, diversified and innovative, providing opportunity and prosperity for businesses and residents alike, while sustaining a healthy environment and a superior quality of life. Guiding Principles • Dakota County government will take a collaborative approach to economic development internally and externally, working among County departments and agencies, as well as with cities and other partners. Care will be taken to avoid duplication. • County government will plan for and invest in critical infrastructure (e.g. transportation, telecommunications) and other competitive advantages that support economic growth and vitality. ■ Dakota County government may choose to be involved in economic development projects that o are highly visible and regionally significant in the Twin Cities metro area; o are physically located in more than one community; o involve county and state roads; o create a significant employment, infrastructure or tax base impact; o demonstrate a positive return on investment, or o preserve, enhance or remediate environmental quality. • County government may develop economic development initiatives to respond to the need for specialized expertise and economies of scale (i.e. workforce housing, brownfield remediation, telecommunications, workforce development). • Dakota County government will use research and policy development as a framework to guide and evaluate economic development strategies and actions. • County government will consider workforce, employment, and tax base development to enhance long -term plans and investment decisions. Adopted by the Dakota County Board of Commissioners on 12/19/06 (Res. 06 -458) BOARD OF COUNTY COMMISSIONERS DAKOTA COUNTY, MINNESOTA July 31, 2007 Motion by Commissioner Egan Resolution No. 07 -320 Second by Commissioner Gaylord Adoption Of Six Economic Development Strategic Initiatives WHEREAS, the Dakota County Board of Commissioners recognizes that the concepts of economic development, workforce development, and community development are inter- dependent, mutually supportive, and essential for sustainable economic vitality; and WHEREAS, the Dakota County Board of Commissioners recognizes that a Dakota County economic development strategy is necessary to ensure efficient allocation of resources and effective collaboration with economic. development partners; and WHEREAS, in April 2005, Dakota County and Dakota County Community Development Agency (CDA) staff initiated discussions on how to assess overall economic development activities and overall coordination; and WHEREAS, as a result of these discussions, a Request for Proposals was issued by the CDA for a consultant to evaluate existing economc_development efforts within the county and identify gaps that could be better addressed by a shared vision and Dakota County strategy; and WHEREAS, in January 2006, Janna King of Economic Development Services was selected by the CDA to facilitate the development of a Dakota County Economic Development Strategy; and ' WHEREAS, by Resolution No. 06-458 (December 19, 2006), the County Board adopted the Vision and Guiding Principles, and a defined list of Strategic Initiative activities was presented to the Administration /Finance/Policy Committee of the Whole on July 10, 2007. NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby adopts the Economic Development Strategic Initiatives and further supports the implementation of corresponding activities for 2007 -08 as presented to the Administration /Finance /Policy Committee of the Whole on July 10, 2007. STATE OF MINNESOTA County of Dakota I, Mary S. Schelde, Clerk to the Board of the County of Dakota, State of Minnesota, do hereby certify that I have compared the foregoing copy of a resolution with the original minutes of the proceedings of the YES NO Board of County Commissioners, Dakota County, Minnesota, at their session held on the 31st day of July 2007, now on file in the County Harris X Harris Administration Department, and have found the same to be a true and Gaylord X Gaylord correct copy thereof. Egan X Egan Witness my hand and official seal of Dakota County this 3rd day of Schouweiler X Schouweller August 2007. 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N N M N I M tn N N �O cr, M to M O a1 z M M N M M 00 M V 3 T " h > T b0 � > A C _T U C ❑ C C Q Q 00 O �£ E U O ° a a o o w C = ° e o ? :: ea o o °' >> CO) ` Q o 3 o y o a a i "J' w 3 T y •^ �Q _ d V a d :C r�r R L O R{ N f� VII LC N Y Y U U � U Ir � yl � 0 � E E � _ � L 4 D 4 w 4 �• [ N 4 +�+ CL w a F1 N G , �" w � w fp a n 0 0 R ro 0 4 3 O a d i v� w? - a� a"i v� a v� F x> v� a dUC�a'' - 1 v� �UC] a.v��3 v� �aE- wxvi Ndw O 02 GDP O US EMPLOYMENT O BUSINESS CONSUMER SPENDING • SPENDING `Arrows indicate change from previous quarter. Quick Stats Total Vacancy 5.8% Lease Rates (Nei) $4.51 y t Net Absorption 634,613 t t Under 719,521 t Construction `The arrows are trend indicators over the specified time period and do not represent a positive or negative value. (e.g., absorption could be negative, but still represent a positive trend over a specified period.) Hot Topics • Speculative development remains on the forefront of discussion • Industrial investors considering all industrial product types; cap rates on core assets reach all time lows • Leasing activity decelerates in the 10,000 — 30,000 square -foot range • Minneapolis /St. Paul unemployment rate is well below the national average CBRE METRO INDUSTRIAL Market Overview The Minneapolis /St. Paul Industrial Market remained on a positive growth path during the 2nd quarter of 2013. Encouraging trends and fundamentals widely seen in the 1 st quarter carried over into the 2nd quarter. Absorption, occupancy levels and net lease rates continue to show signs of improvement. Demand remains high for properties with higher ceiling heights, typically 24 feet and greater, in desirable areas located within the 1 stand 2nd tier suburbs. Newer buildings with functional layouts still spend very little time on the market. Net absorption during the 2nd quarter remained positive, which marks the twelfth consecutive quarter of positive net absorption. Several large transactions ensured that net absorption would remain positive, such as Clover Leaf Cold Storage, Superior 3rd Party Logistics and Via West. Transaction square- footage consisted of 336,000, 213,075 and 155,000 square -foot spaces, respectively. Vacancy and availability rates continue to decrease in local market. This reflects positive growth in the industrial real estate sector. Asking net lease rates typically have remained around $4.50 per square - foot for warehouse space and $8.50 per square -foot for office space, which are expected to increase over the next twelve months. The highlight of the industrial sale market was the closing of the of the 305,801 square -foot IRET Single Tenant Portfolio. The IRET Portfolio consisted of four 100% occupied industrial buildings. Investor demand for both local industrial product and industrial product in secondary markets has improved dramatically over the last six months. As cap rates on core assets have compressed to all -time lows, industrial investors are being motivated to consider alternative property types within the industrial category. Functional assets in infill locations with additional leasing upside have seen excellent activity. © 2013, CBRE, Inc. Northwest 61,353,898 3,432,831 5.7% 8.1% 149,538 218,434 348,400 54.94 Southwest 69,610,103 4,736,528 7.1% 10.0% 445,652 490,965 44,000 55.14 South Central 49,779,567 3,425,294 7.2% 10.2% 1,465 64,274 100,721 54.58 St. Paul 20,260,988 1,490,136 7.4% 7.8% 29,838 49,707 - S3.86 Minneapolis 30,001,793 955,357 3.2% 5.1% 62,900 46,600 - S3.95 North Central 48,695,664 2,596,852 5.4% 6.4% (95,057) (52,040) 93,400 $4.85 East 14,129,812 342,801 2.7% 3.5% (27,476) (13,277) - S5.19 Midway 33,639,210 1,476,587 4.4% 6.8% 67,753 91,142 68,000 54.05 Source: CBRE, 02 2013. Minnesota 11111111 5.3% Minneapolis/St. Paul M 4.7% United States 7.6% 12% --------------------------------------------------------------------- 9% ------------------------------ - - - - -- ------------------------------ 7 % -------------- - - - - -- - -- - - -- -- - - - - -- 5% - -- - - 2% - - - - 0% 2007 2008 2009 2010 2011 2012 2013 Source: BLS, May 2013. Economic Health Minneapolis /St. Paul's economic outlook remains positive. Steady job growth and an improving housing and construction market have been the main catalysts behind the local economy's prosperity. The Department of Employment and Economic Development (DEED) expects these improvements to continue into the latter half of 2013. The latest jobs numbers released by the Bureau of Labor Statistics show a month -to -month increase for all of 2013. According to DEED, the state's payroll employment will pass its pre- recessionary high in 3rd or 4th quarter of 2013, which will give the state its best three -year run since 1999- 2001. This positive employment data and an improving housing market will benefit the commercial real estate sector by stimulating consumer spending and encouraging the private sector to expand their business operations. An expanding private sector will lead to businesses looking to increase their footprint at their current facility, open new locations elsewhere in the metropolitan area, or both. These are encouraging signs for the continued growth of commercial real estate in Minneapolis /St. Paul. C 2013, CBRE, I- CBRE Clover Leaf Cold Storage 336,000 Eagan New Lease Superior 31 Party Logistics 213,015 Minneapolis Renewal Via West 155,000 Chaska User Sale Citrus Systems 131,000 Hopkins New Lease/Expansion General Mills 104,000 Plymouth New Lease Target 89,135 Minneapolis New Lease/Expansion Construction Activity There was one building completed during the 2nd quarter, a 68,000 square -foot office warehouse build to suit for Park Tool in the East Submarket. Currently there are nine projects totaling approximately 720,000 square feet under construction. All projects are build -to -suit developments except for one speculative development which is a 68,000 square -foot office warehouse in the Midway Submarket. Speculative development will continue to be on the forefront of discussion as there is still significant demand for newer construction in desirable areas. Completed SF fi Currently there are four projects in the pipeline that are expected to break ground in 2013. These comprise approximately 700,000 square feet with one fully speculative project that totals 185,000 square feet. Construction activity, illustrated in Chart 2 below, has been increasing since 2010. If the four projects mentioned above in fact do break ground in 2013, there should be close to 1 million square feet of new industrial product delivered to the market. 2,000,000 --- ------- ------------- - - - - -- 1,500,000 1,000, 000 500,000 0 Forecast The Minneapolis /St. Paul industrial market has steadily been climbing the proverbial ladder in terms of reaching pre - recession status. Currently, the industrial market is on pace to exceed 1 million square feet of net absorption locally, that is, if trends seen in the first half of 2013 continue into the latter half of the calendar year. The current lack of high - quality industrial space combined with lease rates approaching a level where new construction can be justified, should lead to multiple speculative projects breaking ground in the 3rd quarter of 2013. There is concern that a proposed warehousing tax, set to take effect in 2014, will deter warehousing companies from keeping their current operations in our market. Prospective companies looking to locate operations in Minneapolis /St. Paul could also choose neighboring states to avoid the looming tax. 0 2013, CBRE, Inc. CBRE 9M7 011114 Nnno Onln 91111 )n19 11110 vTn Minneapolis /St. Paul 2,500,000 1,500,000 500,000 - 500,000 1,500,000 2,500,000 Availability Vacancy --------------------------------------- - -- -- - - - - -- ------- - - - - -- -- - - - - -- -- 2007 2008 2009 2010 2011 2012 2013 YTD Source: CBRE Research, 02 2013. Bulk Warehouse Office Warehouse Office Showroom (blended) 8.00 --------------------------------------------------------------------- 7.00 - - - -- ------------ - - - - -- ---------- - - - - -- - 6.00 --------------------------------------------------------------------- 5.00 ----- -------------- - --- ----------------------- ----------------- ----- 4.00 - - - -= 1 - - - -- 3.00 2007 2008 2009 2010 2011 2012 2013 YTD Source: CBRE Research, 02 2013. For the twelfth consecutive quarter net absorption was positive for the Minneapolis /St. Paul industrial market. During the 2nd quarter there was 634,613 square feet of net absorption. Net absorption is a measure of the change in occupied space over a period of time taking into consideration space vacated in the same area during the some period. A positive number in this category typically indicates that users are still very active and there is significant demand for space. The availability rate has been trending downward since 2010. This downward trend in availability is significant in that new construction can generally be justified as the availability rate falls. The availability rate shows not only space that is currently vacant, but also space that is occupied and being marketed as available. Minneapolis /St. Paul realized a decrease in the vacancy rate of 20 basis points in the 2 quarter. The margin between vacancy and availability should tighten as tenants continue to take advantage of attractive lease rates. The vacancy rate represents space that is being marketed for sale or lease and is currently vacant. Asking rates for all product types have remained stable. Asking rates should increase as upward trending lease rates are directly correlated to a decrease in available space. This decrease in available space should lead to new construction. Office showroom product asking rates showed a significant increase during the first quarter. This rate is calculated by taking 50% of the office rate and 50% of the warehouse rate. Asking rates are quoted lease rates, not actual rates being transacted upon lease signings. © 2013, CBRE, Inc. CBRE Source: CBRE Research, 02 2013. CONTACTS For more information about this Local MarketView, please contact: Minneapolis /St. Paul Industrial Eric Sheaffer Analyst Minneapolis /St. Paul Research CBRE 4400 West 78 Street, Suite 200 Minneapolis, MN 55435 t: 952 924 4809 e: eric.sheaffer @cbre.com 11 GOOGLE+ FACEBOOK Global Research and Consulting TWITTER This report was prepared by the CBRE U.S. Research Team which forms part of CBRE Global Research and Consulting — a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe. Disclaimer Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist. CBRE © 2013, CBRE, Inc. Olson, David From: DEED Communications <MNDEED @public.govdelivery.com> Sent: Thursday, September 19, 2013 10:03 AM To: Olson, David Subject: August Employment Numbers For Immediate Release September 19, 2013 Contact: Madeline Koch, 651- 259 -7236 madeline.koch(@state.mn.us Steve Hine, 651 - 259 -7396 steve.hineCcbstate.mn.us State Gains 12,200 Jobs in August —Minnesota recovers all jobs lost from the recession— ST. PAUL — Minnesota employers added 12,200 jobs in August, pushing total jobs in the state over the pre- recessionary peak that was reached in February 2008, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). The agency said Minnesota has now recovered all the jobs that were lost in the recession, eclipsing the February 2008 mark by 5,100 jobs. The state has added 63,100 jobs in the past year, a 2.3 percent growth rate that exceeds the national rate of 1.7 percent. The state unemployment rate dropped 0.1 percent in August to a seasonally adjusted 5.1 percent, the lowest level since April 2008. The U.S. unemployment rate in August was 7.3 percent. "August's employment numbers mark a major milestone in the recovery of Minnesota's economy," said DEED Commissioner Katie Clark Sieben. "We've now recovered all of the jobs lost during the recession, which is one of many positive indicators pointing to continued economic growth." The following industrial sectors gained jobs last month: trade, transportation and utilities (up 6,000), education and health care (up 5,500), other services (up 2,300), government (up 1 1,900), construction (up 1,100), leisure and hospitality (up 700), and financial activities (up 100). Logging and mining held steady. Manufacturing lost 3,400 jobs, followed by professional and business services (down 1,100) and information (down 900). Trade, transportation and utilities led all sectors over the past year, adding 18,300 jobs. Other over - the -year gains occurred in education and health services (up 13,100), professional and business services (up 10,200), leisure and hospitality (up 9,400), government (up 9,000), other services (up 2,800), construction (up 2,700), financial activities (up 1,900), information (up 400), and logging and mining (up 400). The only sector to lose jobs over the past year was manufacturing (down 5,100). In the state Metropolitan Statistical Areas, job growth occurred in the past 12 months in the Minneapolis -St. Paul MSA (up 3.2 percent), St. Cloud MSA (up 2.2 percent), Mankato MSA (up 1.5 percent) and the Rochester MSA (up 0.1 percent). The Duluth- Superior MSA fell 0.1 percent. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com Follow us on Twitter at www.twitter.com /PositivelyMN Over The Year Employment Growth By Industry Sector NSA Seasonally adjusted Not seasonally adjusted Unemployment Rate August 2013 July 2013 August 2013 August 2012 Minnesota 5.1 5.2 4.8 5.6 U.S. 7.3 7.4 7.3 8.2 Employment August 2013 July 2013 Aug. '12- Aug. '13 Level Chan e Aug. '12- Aug. '13 % Chan e Minnesota 2 2 773 800 63 2.3 U.S. 136,133,000 135,964,000 2,208,000 1.7 Over The Year Employment Growth By Industry Sector NSA OTY Job Change OTY Growth Rate ( %) U.S. OTY Growth Rate Total Non -Farm Employment 63,100 2.3 1.7 Logging and Mining 400 5.0 3.0 Construction 2,700 2.5 2.8 Manufacturing -5100 -1.6 0.1 Trade, Trans. and Utilities 18,300 3.6 2.0 Information 400 0.8 -0.3 Financial Activities 1 1.1 1.4 Prof. and Bus. Services 10 3.0 3.4 Ed. and Health Services 13 2.8 1.9 Leisure and Hospitality 9 3.6 3.0 Other Services 2 2.4 0.8 Government 9 2.4 -0.4 ff99z Upon request, the information in this news release can be made available in alternative formats for people with disabilities by contacting the DEED Communications Office at 651 - 259 -7161. Minnesota Department of Employment and Economic Development Communications Office Phone 651 - 398 -9459 or1- 800 - 657- 3858•TTY 1- 800 - 657 -3973 www.PositivelyMinnesota.com An equal opportunity employer and service provider. POSITIVELY Questions Contact Us Dy�IN� d EwrM�wrd rW SIC O�rNa}nrd STAY CONNECTED: ff1©W O SHARE SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help OTY OTY Employment Employment Change Change Metropolitan Statistical Area (# ,NSA) % NSA Minneapolis -St. Paul MN -WI MSA 56 3.2 Duluth-Superior MN -WI MSA -200 -0.1 Rochester MSA 100 0.1 St. Cloud MSA 2 2.2 Mankato MSA 800 1.5 ff99z Upon request, the information in this news release can be made available in alternative formats for people with disabilities by contacting the DEED Communications Office at 651 - 259 -7161. Minnesota Department of Employment and Economic Development Communications Office Phone 651 - 398 -9459 or1- 800 - 657- 3858•TTY 1- 800 - 657 -3973 www.PositivelyMinnesota.com An equal opportunity employer and service provider. POSITIVELY Questions Contact Us Dy�IN� d EwrM�wrd rW SIC O�rNa}nrd STAY CONNECTED: ff1©W O SHARE SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help Olson, David From: DEED Communications <MNDEED @public.govdelivery.com> Sent: Wednesday, September 18, 2013 3:31 PM To: Olson, David Subject: ICYMI: Minnesota Metros Among the Fastest Growing in the Nation Four of Minnesota's major metropolitan areas ranked in the top quarter of the 381 U.S. metros measured for growth in Gross Domestic Product. Minnesota metropolitan areas are growing — and fast, according to the U.S. Commerce Department. Announced this week, the latest numbers for 2012 rank four of Minnesota's major metropolitan areas in the top quarter of the 381 U.S. metropolitans measured for growth in Gross Domestic Product (GDP). The Mankato metro led the list of Minnesota regions for growth with a 4.1 percent increase in GDP, with the largest contributors being durable goods and an increase in trade. The Twin Cities economy grew at its fastest pace in nearly a decade with 3.9 percent growth. Not only was the pace of growth well above the national average, but the Twin Cities outshone 1 ICYMI: Minnesota Metros Among Fastest Growing in the Nation Midwest neighbor cities of Chicago, Milwaukee, St. Louis and Kansas City. Minnesota is the fifth - fastest - growing economy in the nation. Banking, insurance and real estate were big drivers of the increase in the Twin Cities, but our diverse economy statewide including in medical devices, retail and construction contributed to the growth in many metro areas. To dip into the details, here are Minnesota's metro areas, their growth rate from 2011 to 2012, and their rank out of the 381 metropolitan areas nationally for growth rate: Metro Area Growth Rate National Rank Mankato 4.1% 43 St. Cloud 4.0% 50 Twin Cities 3.9% 55 Rochester 3.6% 67 Duluth -2.8% 368 For the full report: News Release: GDP bV Metropolitan Area, Advance 2012. and Revised 2001 -2011 POSITIVELY _,1 f Questions Contact Us STAY CONNECTED: 9113 I P © SHARE SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help This email was sent to dolson @lakevillemn.gov using Gov Delivery, on behalf of: Minnesota Department of Employment and ��//��////��//� Economic Development 9OVDE 332 Minnesota Street Suite E -200 Saint Paul, MN 55101 (800) 657 -3858 WW. 2 inance & Commerce > Print > FedEx looks at Rogers for distribution... Finance & Commerce : / /finance - commerce.com FedEx looks at Rogers for distribution center by Chris Newmarker Published: September 10th, 2013 Brooklyn Park officials said they didn't want it. But about eight miles northwest in Rogers, FedEx is getting a warmer reception for a 300,000- square -foot distribution center project. Developer and contractor Grady Kinghorn has been pitching the FedEx Ground center for 70 acres he owns at 12395 Brockton Lane N. in Rogers, according to Rogers documents related to the city's recent rezoning of the land from mixed use to industrial. Rogers city administrator Steve Stahmer says FedEx has not submitted a formal application. But Kinghorn and trustees for the 76 -acre Henry Homestead to the north of the site are expected to return Tuesday night to the Rogers City Council to request a rezoning of the Henry land, which Stahmer says might also be included in the FedEx development. "My understanding is it would be very similar, if not serve the same purposes [that] they were looking for in Brooklyn Park," Stahmer said of FedEx. Tim Elam, a development manager at Scannell Properties, which develops FedEx distribution centers, was at an Aug. 27 Rogers transportation task force meeting to discuss traffic impacts from the center, Stahmer said. Kinghorn and Elam could not be immediately reached Monday for comment. A FedEx spokeswoman declined to comment. The city has no official position at this time, but Stahmer says many council members have voiced their desire to make the project work. It would be Rogers' latest win in its distribution center boom. All 146 acres sit between Interstate 94 and Brockton Lane. The Kinghorn and Henry land is just a bit north of the 12135 ; Brockton Lane site, where Kinghorn Construction is wrapping up t pMM 1 36 7HAMN work on ice- fishing accessories maker Clam Corp.'s new FM ; r 150,000- square -foot headquarters. ti J Clydesdale Trail LLC, an entity related to Clam Corp. owner ► David Osborne, closed June 12 on a nearly $2.43 million purchase of the 43.61acres on the site. The seller was CPE e Exchange 36377 LLC, which in turn had bought the land on '4?",; - March 14 from Grady and Sandra Kinghorn in a $1.521 million purchase.` The talk of FedEx creating a distribution center in Rogers comes about a month after Brooklyn Park City Council members raised questions with Elam and other developers about the project, which was being pitched on the southeast corner of U.S. Highway 169 and 109th Avenue. http: / /fmance- commerce .com /wp- content/plugins /tdc- sociable - toolbar... Fed c cm in g to Rogers? FedEx app's to have turned its attention to a 70 -acre site, at M95 Brockton Lane N. in Rogem for a mom than 300 MOO square tout distribution center that Itprevio s pitched in of ? 9/10/2013 8:08 AM FedEx appears to be considering 70 acres at 12395 Brockton Lane N. in Rogers, north of where Clam Corp, is wrapping up work on its new 150,000 - square -foot headquarters. (Staff photo: Bill Klotz) nance & Commerce > Print > FedEx looks at Rogers for distribution... http: // finance - commerce .com /wp- content/plugins /tdc- sociable - toolbar... The site, which currently hosts the Twin Cities Harvest Festival Brooklyn Park, and Maze, is less than a mile north of Highway 610. It is one of the last large tracts open for business park use in Brooklyn Park. Brooklyn Park officials did not think a FedEx center was a significant enough use for the land. The facility would have supported 500 jobs, but only 64 of them would have been full -time office and support staff working at the site. The hundreds of trucks slated to come in and out of the site were also a concern. Word on the street was that Scannell and FedEx had Rogers in their back pocket all along, said Brent Masica, a director at Bloomington -based Cushman & Wakefield /NorthMarq. "They had to have known that Brooklyn Park was a long shot," Masica said. Unlike in Brooklyn Park, potential traffic issues in Rogers would involve more commercial and industrial areas versus residential, Stahmer said. The city is studying what kind of road work is needed in the area to ensure trucks from FedEx, Clam and other businesses have easy access to I -94 and other major roads. A road has already been planned at the potential FedEx site to link Rogers Drive, the access road along I -94, with Brockton Lane, Stahmer said. If the distribution center project moved forward, Rogers would join a list of local cities willing to welcome Memphis, Tenn. -based FedEx, a $44- billion -a -year company that has seen strong growth in its ground shipping as e- commerce continues to expand. A 276,000- square -foot distribution center is under construction at 9997 95th Ave. N. in Maple Grove after receiving city approval in March. The FedEx distribution center in Shakopee is also expanding. And the company last year consolidated some local operations into a new 130,000 - square -foot building at 2275 Walnut St. in Roseville. After Brooklyn Park, Rogers was the next best bet for FedEx's next distribution center in the area, according to Masica. "They have the space where they can build it. Plymouth, Golden Valley, New Hope - no one has the land," Masica said. In the overall metro, the northwest metro submarket, including Rogers, has the lowest vacancy rates for industrial space (10.3 percent), according to the most recent Compass report from Cushman & Wakefield /NorthMarq. Liberty Property Trust has site plan approval for an up to 227,000- square -foot warehouse on spec at 13220 Wilfred Lane North in Rogers, and Minneapolis -based CSM Corp. is planning a similarly sized warehouse in the city at the northwest corner of Brockton Lane and Diamond Lake Road, Stahmer said. Complete URL: http: / /finance- commerce.com/ 2013 /09 /fedex- looks- at- rogers- for - distribution- center/ ,f') oiini , )niz Q•nQ AM finance & Commerce > Print > Homebuilding heats up in August Finance & Commerce http: / /fmance- commerce .com /wp- content/plugins /tdc- sociable - toolbar... http: / /finance - commerce.com Homebuilding heats up in August by Brian Johnson Published: August 29th, 2013 The Twin Cities housing market was nearly as hot as the weather in August, as permits for new homes rose 30 percent since August 2012 and planned new housing units increased 24 percent. So far in August, local cities have issued 553 permits for 1,174 new housing units, up from 426 units for 950 units during the same five -week period a year ago, according to the Keystone Report, which tracks permit activity in the 13- county metro area. Two large developments already under construction — a 317 -unit student housing project in Minneapolis and a 272 -unit market -rate apartment building in Maple Grove — account for half of the August units. Overall, the numbers are in line with monthly percentage gains the area has seen throughout the year. "Keystone numbers have been pretty consistently running up 30 percent all year," said Herb Tousley, director of real estate programs at the University of St. Thomas. In Maple Grove, crews are working on the footings and foundation for the 272 -unit Skye at Arbor Lakes project, according to Dick Edwards, the city's community development director. Developed by Florida -based LeCesse Development Corp., the project at the northeast quadrant of Arbor Lakes Parkway and Lakeview Drive is the first phase of a two - building development that will eventually bring 440 new housing units to town. (The project was formerly known as GrandeVille at Arbor Lakes.) Edwards told Finance & Commerce in 2011 that it had been "at least 10 years since anything of this size has come forward" in the city. In addition, the city is on "a pretty good pace to exceed last year's single - family total, which was around 200 units," Edwards said Thursday. "Things are moving along steadily. Not the way they were years ago, but there is some improvement this year." Construction is also moving along on Chicago -based Gem Realty Capital's 317 -unit student housing project at 1313 Fifth St. SE in Minneapolis. Minneapolis -based Kraus - Anderson is the builder. As previously reported by Finance & Commerce, Gem Realty Capital demolished the former University Technology Enterprise Center to make way for the building. "It's a huge project," said John Campobasso, Kraus - Anderson's vice president and director of marketing. "There's a lot up already." More than 18,680 apartment units are proposed or in development in the Twin Cities, according to Finance & Commerce's Apartment Development Tracker Single- family housing permits, meanwhile, were up 33.5 percent in August, according to Wendy Danks, marketing and communications director for the Builders Association of the Twin Cities. of 2 - - - - - -- 8/30/2013 2:00 PM Construction is progressing on Chicago -based Gem Realty Capital's 317 -unit student housing project at 1313 Fifth St. SE in Minneapolis, the biggest project reflected in the August residential permit data. (Staff photo: Bill Klotz) nance & Commerce > Print > Homebuilding heats up in August http: / /fmance- commerce .com /wp- content/plugins /tdc- sociable - toolbar... In August, cities issued 533 permits for single - family homes and 20 permits for multifamily projects, Danks said. All but two of the multifamily permits were for buildings with 16 or fewer units. The combined value of the August permits is $194.7 million, up 24 percent from a year ago. Year -to -date value is up 32 percent to $1.22 billion. Through the first eight months of 2013, residential permits (3,465) are up 30 percent and planned housing units (6,088) are 24 percent higher compared with the same eight -month stretch in 2012. Tousley said the numbers should hold up pretty well through the fall and winter. "We have a ways to go before we see numbers like we did in 2004, 2005 and 2006, but if we keep seeing healthy increases from year to year, that slow, steady growth is much healthier for the market in terms of new homebuilding," he said. Minneapolis led all cities in August with 16 permits for 332 new housing units. Maple Grove (17 permits, 288 units), Lakeville (46 permits, 46 units), Plymouth (39 permits, 40 units) and Woodbury (30 permits, 33 units) rounded out the top five. The Keystone data come on the heels of a University of St. Thomas report that shows local home prices took a breather in July. The median sale price of non - distressed homes — homes that are not foreclosures or short sales — dropped 2.7 percent from June to July to $224,900, according to the University of St. Thomas' Shenehon Center for Real Estate. Still, housing market watchers at St. Thomas aren't overly concerned because the median price is 3.66 percent better than in July 2012 and only 6.2 percent less than the pre- housing - bubble peak of June 2006. Tousley said prices typically peak around June and start to level off in July and August. "I don't think this [price decrease in July] is unusual. I don't think this represents a fundamental change in what is going on in the market," Tousley said. Twin Cities building permits Single- family, multifamily building permits on the rise in August. August 2013 total permits: SS3 Percent change from 2012: 30% Year -to -date 2013: 3,465 Percent change from 2012: 30% August 2013 total units: 1,174 Percent change from 2012: 24% Year -to -date 2013: 6,088 Percent change from 2012: 24% August 2013 total $ volume: $194.7 million Percent change from 2012: 24% Year -to -date 2013: $1.22 billion Percent change from 2012: 32% Source: Keystone Report/Builders Association of the Twin Cities Complete URL: http: / /finance- commerce.com /2013 /08 /homebuilding- heats- up -in- august/ ..cl Q/'2n/ 14nn PTa Real estate sales propelling economic surge in Twin Cities Adam Belz, Star Tribune The Twin Cities economy grew at its fastest pace in nearly a decade last year, and real estate was the big driver. The U.S. Commerce Department reported Tuesday that real GDP, the total value of goods and services adjusted for inflation, grew by 3.9 percent, adding more than $7 billion in economic activity. Almost a third of the growth was in real estate, rentals and leasing, thanks to an improved housing market and low rental vacancy. "We have one of the lowest vacancy rates in the United States," said Toby Madden, an economist at the Federal Reserve Bank of Minneapolis. "Home sales were up in August 2012 over August 2011 by 12 percent. Sale prices were up 16 percent." Minneapolis -St. Paul didn't move from its spot as the 13th - largest metropolitan economy in the United States, behind Seattle and ahead of Detroit. GDP grew in 305 of the nation's 381 metropolitan areas. But the pace of growth in the Twin Cities was well above the national average, better than such Midwestern cities as Chicago, Milwaukee, St. Louis and Kansas City, and propelled Minnesota into the position of having the fifth - fastest - growing economy in the nation Banking, insurance and real estate led the way. But the strength of food companies, medical devices, retail and construction illustrate the Twin Cities' great strength — economic diversity, said Michael Langley, president of Greater MSP, an economic development group. "We're not a one -horse town," Langley said. "We have other major industry sectors that are also showing growth, including manufacturing of both durable and nondurable goods, but also business services and professional services around our headquarters here." Signs of life in housing and real estate led to 8 percent growth for real estate, rental and leasing, accounting for nearly $30 billion in economic activity in the Twin Cities. Finance and insurance posted an 8.1 percent gain, accounting for $21.4 billion. "We've come out of the housing crisis in better shape than a lot of regions because we had not overbuilt," Langley said. Since home sales and prices continued to rise in 2013, that sector of the economy has likely kept up its growth. Unemployment in the metro area was 4.9 percent in July, compared with a national average of 7.4 percent. With a population of 3.4 million including 125,000 people across the river in Wisconsin, the Twin Cities metropolitan area accounts for three - fourths of Minnesota's economic activity. "The Twin Cities metro area is the driver of Minnesota's GDP," said Louis Johnston, an economist at the College of St. Benedict and St. John's University. "And of course that's built in part on stuff that's going on in other parts of the state — it's an interactive process." Manufacturing grew by 5.9 percent in 2012, but it isn't clear whether industry has kept up its growth in 2013. "It's still growing but probably not as fast as it was before," Madden said. It's even less clear whether increasing manufacturing output is translating into jobs. Factory employment in the metro area has declined in 2013, just as it has across the state, even as companies have pivoted to take advantage of the oil boom in North Dakota. "The mix of what's being produced in Minnesota is changing," Johnston said. "We're able to take advantage of what's going on in the Bakken" oil field. In the rest of Minnesota, Mankato's and St. Cloud's economies grew slightly faster than the Twin Cities, and Rochester was not far behind. However, the economy in Duluth- Superior shrank in 2012 by 2 percent, or about $167 million. The weakness there came from declines in mining output and financial services. Across the region, Bismarck, N.D., was the fastest - growing economy, followed by Peoria, Ill., and Fargo. The 10 largest U.S. metropolitan areas, accounting for 34 percent of national GDP, averaged 3.1 percent growth in 2012 after growing 1.9 percent in 2011. Adam Belz • 612 - 673 -4405 Twitter: @adambelz