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HomeMy WebLinkAbout04-22-14n AGENDA Economic Development Commission April 22, 2014 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of March 25, 2014 minutes 3. Introduction of New EDC Members Lowell Collman & Joe Julius 4. Election of Officers 5. Dakota Electric Presentation — Mark Lofthus, Economic Development Director 6. Menasha Packaging TIF Project Update (To be presented at the Meeting) 7. Update on 2014-16 Strategic Plan for Economic Development Work Program 8. Directors Report 9. Adjourn Attarhmantc- March 2014 Building Permit Report March 2014 Foreclosure Report Minnesota Employer — Employer Law Blog Finance & Commerce, "Minnesota job vacancies hit nine-year peak", April 1, 2014 1P wak CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES March 25, 2014 Chair Starfield called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Starfield, Matasosky, Longie, Emond, Akason, Vlasak, Ex -officio member City Administrator Steve Mielke. Members Absent: Comms. Smith, Tushie, Mayor Matt Little, Ex -officio member Lakeville Area Chamber of Commerce Executive Director Todd Bornhauser. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist; Mikaela Huot, Springsted Inc.; Shannon VanDyke, Brian Pascavis, and Bill Giesie, Menasha Corporation. 2. Approval of February 18, 2014 meeting minutes Motion Comms. Matasosky/Emond moved to approve the minutes of the February 18, 2014 meeting as presented. Motion carried unanimously. 3. Review of Proposed Tax Increment Financing Assistance for Proposed Menasha Packaging LLC Expansion Representatives from Menasha Packaging provided the EDC with an overview of their business and expansion plans in Lakeville. They added that assistance is needed with site improvements including soil corrections and the re-routing of a rail spur. Mr. Olson reviewed the EDC memo containing the proposed request for Tax Increment Financing (TIF) assistance. Motion Comms. Emond/Longie moved to recommend the City Council approve the TIF assistance package for Menasha Packaging LLC. Commissioner Matasosky abstained. Motion carried unanimously. 4. Discussion of 2014-2016 Strategic Plan for Economic Development Work Program Mr. Kienberger provided an update on the 2014-2016 Strategic Plan for Economic Development. A revised Work Plan was discussed including target timeframes for completing action items within the strategic initiatives. The EDC discussed housing policy and if additional study above and beyond the work Maxfield Research did for the Dakota County CDA was needed. Economic Development Commission Meeting Minutes, February 18, 2014 T F Page 2 Mr. Mielke noted that Maxfield Reseach would make a presentation similar to the one the EDC received at their February meeting to the City Council in the near future. The EDC discussed the idea of including a representative from ISD 194 as an ex - officio on the EDC for future meetings. Housing policy will continue to be discussed by the EDC at upcoming meetings. 5. Director's Report Mr. Olson reviewed the Director's Report. 6. Adjourn Meeting adjourned at 5:40 p.m. Respectfully submitted by: Adam Kienberger, Recording Secretary lcm No.. City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steven Mielke, City Administrator David L. Olson, Community & Economic Development Director Date: April 18, 2014 Subject: Election of Officers In line with new board and commission appointments made by the City Council on April 71n, EDC election of officers will take place at this month's meeting. EDC members elected Glenn Starfield as Chair, Sheila Longie as Vice Chair, and Jeannie Schubert as Secretary for 2013. Action Requested: Commissioners are asked to elect officers to serve the 2014 year. ZT*akAwVr1J1'N1 Memorandum City of Lakeville Community & Economic Development To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist t Copy: Steven Mielke, City Administrator ' David L. Olson, Community & Economic Development Director Date: April 18, 2014 Subject: Dakota Electric Presentation - Mark Lofthus, Economic Development Director Mark Lofthus has been the economic development director at Dakota Electric Association since November, 2012. Before that, he was employed for 24 years at the Minnesota Department of Employment and Economic Development, in business and community development program management. Preceding his time with the state, he worked for six years in Marshall, Minnesota for a community development group. Mark has a B.A. in economics from the University of Minnesota, and an M.A. in public administration from Minnesota State University, Mankato. He serves on the board of the Dakota Regional Chamber, and the board of the Minnesota Economic Development Foundation, as well as the Dakota Scott Workforce Investment Board. Action Requested: None. The presentation is meant to provide the EDC with additional information about area economic development resources. MPN:kke!g�v�'file Memorandum m o.. -7 .. City of Lakeville Community & Economic Development To: From: Economic Development Commission Adam Kienberger, Economic Development Specialist Copy: David L. Olson, Community & Economic Development Director Steven Mielke, City Administrator Date: April 18, 2014 Subject: Strategic Plan for Economic Development Work Plan Update The City Council accepted the EDC's 2014-2016 Strategic Plan for Economic Development at their January 6, 2014 meeting. This plan provides the EDC and staff with a basis to focus on specific initiatives during this three-year period. The Work Plan discussed at the EDC's February meeting serves as the foundation for the activities staff will pursue in 2014. Please find below a summary of the progress made on the 2014 Work Plan: • Business Retention and Expansion o Working with Greater MSP/DEED/MN Chamber on a system for better tracking business visits o Hopes to have it launch in the next couple of weeks • Incentives and Tools to Achieve Success o Coordinating website updates with the Communications Department ■ Includes "Development Toolbox" and Google maps project updates • Enhancing a Pro Business Climate o Exploring online survey tool options for a revised development survey o Existing survey is being revised • High Density Housing o Discussed with the EDC at February and March meetings o Scheduling a time for Maxfield Research to present housing study findings to the City Council Recommended Action: No action required. The attached is an update on the progress of the Strategic Plan for Economic Development. Lakeville Memorandum s No. City of Lakeville Community & Economic Development To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: April 18, 2014 Subject: April Director's Report The following is the Director's Report for April, 2014. Building Permit Report The City has issued building permits with a total valuation of $31,697,031 through March. This compares to a total valuation of $31,595,737,000 through March of 2013. The City issued commercial and industrial permits with a total valuation of $1,651,000 through March compared to a total valuation of $4,737,750 during the same period in 2013. The City has also issued permits for 81 single family homes through March with a total valuation of $28,074,000. This compares to 67 single family home permits through March of 2013 with a total valuation of $21,010,000. The 81 single family home permits issued through March, 2014 was the highest number of residential permits in the Metropolitan Area based on figures released by the Builders Association of the Twin Cities. State of the Citv The State of the City Address was presented by City Administrator Steve Mielke and Mayor Matt Little this past Tuesday at Crystal Lake Golf Course. The Mayor's portion of the address referenced the increased levels of residential development as well a number of the commercial and industrial projects that have been completed or will be getting under way soon including expansions by Menasha Packaging, BTD, QA1, and even small retail projects like Lulu Bea's Upcycling Lounge in Downtown. Lakeville Job Fair Staff is working on the details of hosting a free job fair for Lakeville businesses again this Spring. Last year we hosted a job fair along with the MN Department of Employment and Economic Development at the Heritage Center on April 30th. Approximately 15 local businesses participated and over 400 job seekers attended. We have contacted most of the businesses that participated in last year's job fair and they have indicated an interest in participating again this year. We are planning to hold the event during the second or third week of May at the Heritage Center. The job fair is intended to address industrial and business park business's hiring needs for full-time employees. A separate job fair is being held at Lakeville South on April 30th for companies looking for part-time seasonal employees. Open to Business Quarterly Report Attached is a copy of the quarterly report from Open -to -Business for the first quarter of 2014. Foreclosure Update There were a total of three sheriff sales in Lakeville in March and a total of 17 through the first three months of the year. There were a total of 108 Sheriff Sales in Lakeville in 2013. EDC Member Resignation Joel Akason recently informed the City of his resignation from the EDC. Joel indicated that he plans to pursue other volunteer opportunities. TO BUSINESS Dakota County 1/1/14 — 3/31/14 Clients Served: Client City: New Entrepreneurs 31 Apple Valley 7 Burnsville 9 Existing Business 27 Eagan 10 Farmington 5 Total Entrepreneurs 58 Hastings 3 Inver Grove Hts 7 Lakeville 4 Inquiries 77 Mendota Heights 1 (Requests for information/referral, not a formal client) Rosemount 5 Financing: S. St. Paul 1 W. St. Paul 2 Provided (Dakota County Businesses) Townships 1 Number 1 Undecided Location 3 Amount $30,000 Industry Segment: Provided (Dakota County Residents) Retail 4 Number 0 Service 25 Amount $0 Food 14 Manufacturing 2 Microgrants Technology 0 Number 0 Construction/Related Trades 4 Amount $0 Referral Source: Credit Builder Loans Number 1 Municipalities/CDA 21 Chamber 3 Total $30,000 Internet 2 Friends/Family 4 Other (Banks, Schools, Etc.) 14 Requests/In Process Number 0 Hours of Direct Service: Total Request $0 st 1 Quarter 546.5 Facilitated/Leveraged Loans 2nd Quarter 0 Number 3 3rd Quarter 0 4tn Quarter 0 Amount $1,350,000 v r. �� 3 8��88888$88$88888888�88888$8 a o Cn� 0 C C C o 0 o C o 0 0 0 0 0 0 0 0 0� o a 0 0 0 0 0 a� z en 00 ~ a � a V O�r 8888888888888888888888888888 cW7o O Q O Q 0 0 0 0 0 M N O �• 3 a r, .� �•� Lw pp pp pp pp pp O n N S N O 8� 8 In S S N S In S O� n O N n nV� S O O a y y E �c O �c C O 00 C 00 C C cn C 00 C vi C — C 00 in "T ID C C ON O N y a y i o W O "T n 00 O 00 O� o� 0� ON ItT 00 �c M N Fr U W R lC � T'n U %1 O c ❑ 3 NM O O O --� O O O --� O O •-+ C� O --� �O [� O O --� O c O s m E, c O d c ayi ayi •� O 0. c 3 O 'a .No' mc�i a� 3 N SNSSN88�8tr? g aNi a"i a��i •CCC3 c+ w w O . . . . . . .8888 C O C C O C C C O O C C e pollM GTS 0�0 M N vuu � rn a O 8888888888888888888888888888 .P.I A. z N 0 C) Q Q C7 Q C7 Cj g Cj C7 0 0 C) 0 Q C) Q C) C) Cj g� g� M H M ll�M N N z 0 U ~ M W pp pp pp pp pp S S S S S tn S� O W) N O S O S N O O S O 88888 O O tV C C C C i O V1 O Q\ �6 O O O O O O, (::5 [� 00 O• �6 C C C C Obi ON M N �c Itt M� .N� O� C7,7 � "O C) M —0 — Wn O O O O N N O — "r l- W Coco a 88$88 00000 88888 O O a Q (14 g M N O 8 O O C C C C) 8 8 8 8 8 6 6 6 6 6 88888 O O O Q N 00 M O O O 8 O C C O O O O — .fir V O �• 3 C y � .� �•� y y 1+� a y y E y N y a y i o Fr U '� V w w eo R lC � T'n U %1 O c ❑ 3 c O s m E, c O O c ayi ayi •� O 0. c 3 O 'a .No' mc�i a� 'C' 0p may° 0 g aNi a"i a��i •CCC3 c+ w w O a.aA�Huu u�SH¢¢oaAAwc�c�aaxxxxIn vuu 8888058080800888888080080880 808 80880888808 0000000000000000000000000000 000 0oo00000000 888888888888888888$888888888 888 88888888888 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mtn N M ^ N N M N 4 M 8In 8 8 S S S S� S S S n en 0 In n S S 8 8 n In 0 0 0 0 0 0 tq O O O O tq O O M: M O 0o O tq 0 v, . 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Not all of these result in Sheriff Sales. Mapping Using Dakota County GIS http://gis.co.dakota.mn.us/website/dakotanetgis/ The Dakota County Office of GIS is updating the 2014 Foreclosures and Notice of Pendency layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel or Mary Hagerman with the Office of GIS at (952) 891-7081. If you have any concerns, please call me at (6S 1) 67S-4467 or send me an email at Ihenning(&dakotacda.state.mn.us. c a) 0. _O a� C O 3� O C) m 0 E U Y E c`, Morn ❑UQ �Q TOIU C 41 0 U 4J 0 IT O N s u L rd ►i N cu cu c O v N C N C O U 0 E 0 U- O^ 00 LM O C14 v 0000 O ^ Ln � N 0— Lf)O% N— N O M M d- �^ Ln N Ln N Ln CO O cV m rq O.rn Ln GT N — — — > O L ON Z — — O Ln — 'O N t� N — — b4 7 M M Q — 3 O O th C co O M O Ln N CT O N N O t^ L— � — Q — — L .O O� ON Ln Ln M rn 0 Ln N M O O 00 N 0% Ln — ._ 0 00 `* N M N t\ 00 O M M Ln N M I., N '0 LL — C r\ m O, r-, Ln Ln %o O Ln m .o .o ^ v co � Un s 41 � s a_ y => p 2 4.J � MN — — — V a� _ y, bA p= rn o L L- O mO (A y V o N 0 N 0 N ai > b0iw p c Ln tvto J J J Qm OOO W LL= Jf cc (A U) N cu cu c O v N C N C O U 0 E 0 U- Y C 0 Ea - 0 0 a0 Y C N 7 � O U� clD a Y G) room OUQ 0 �U iiE M M O N 00 — O 00 ^� N 0` NN N — O\ — N O\ — `O v- - O IO M I� I- O v1 I,- N v- [V O, fV X11 M M M — 00 — — — — N M V 0 O Z u O a N Q C c� L. a Q L 1M 00 00 00 - N L1 1� O 0) 10 IO - 00 LA O Lf) O LA N Ln co LL N — — L1 O, — %O u'1 N41 O 41 s to 41 Z x 2 _ 3 ft (d V Wo > _ caa N / �; 4J,o r WCd +; La N V J _ E m V L O _ Q aoL. �C= ue 7 td Q m W U. = = J f Vf Vf 0 c 7 L a1 L L -p N � O d o .� Z u c azo E -0 o cu L H rd N cu V L O d L L � 7 E O7 U C a) T L V u L 0 u � L 0 L V C � O M N v a O V L 0 0_ C T � c 'u 7 0 o U �n td a 0 T Y a1cy C: L 0 0 L {J l� N 'T Vf C rd .0 d� 0 T O u V C a10 v cz c bq a) L C_ O — 0 a� ca v -a O Z aJ C 4 o a) V Q) H C O v c U _a LA L N C Ln 3 � O a1 — � u OL 2 O Olson, David From: Sent: To: Subject: For your information. Cindi Cindi Joosten Human Resources Manager (952) 985-4491 Joosten, Cindi Tuesday, April 15, 20141:00 PM LA Directors FW: [New post] Minnesota Minimum Wage Increase Becomes Law From: Minnesota Employer - Employment Law Blog [mailto:donotreply@wordpress.com] Sent: Tuesday, April 15, 2014 7:31 AM To: Joosten, Cindi Subject: [New post] Minnesota Minimum Wage Increase Becomes Law ;New post on Minnesota Employer fmployment Law Blog Minnesota Minimum Wage Increase Becomes Law by Michael Wilhelm On April 14, 2014, Governor Dayton signed a bill that will raise Minnesota's minimum wage beginning in August of 2014. See H.F. 2091. Here's what employers need to know about the new minimum wage law: Large Employers: "Large employers" — whose gross annual volume of sales made or business done is $500,000 or more — will need to pay a minimum wage of at least $8.00 per hour beginning on August 1, 2014. The minimum wage for large employers will increase to $9.00 per hour on August 1, 2015 and will increase again to $9.50 per hour on August 1, 2016. Small Employers: "Small employers" — whose gross annual volume of sales made or business done is less than $500,000 — will need to pay a minimum wage of at least $6.50 per hour beginning on August 1, 2014. The minimum wage for small employers increase to $7.25 per hour on August 1, 2015 and will increase again to $7.75 per hour on August 1, 2016. Exception for Employees Under the Age of 18: The new law allows "large employers" to pay employees under the age of 18 a lower minimum wage rate of at least: (i) $6.50 per hour beginning on August 1, 2014; (ii) $7.25 per hour beginning on August 1, 2015; and (iii) $7.75 per hour beginning on August 1, 2016. Exception for Employees Under the Age of 20: During the first 90 days of employment, any employer may pay an employee under the age of 20 a lower minimum wage rate of at least: (i) $6.50 per hour beginning on August 1, 2014; (ii) $7.25 per hour beginning on August 1, 2015; and (iii) $7.75 per hour beginning on August 1, 2016. is Exception for Certain Summer Work Travel Employees: An employer that is considered a "hotel or t motel," "lodging establishment," or "resort," as defined by Minnesota law, may pay a lower minimum wage rate to employees working under a summer work travel exchange visitor program nonimmigrant visa, if the employer also provides a food or lodging benefit to the employee. For employees who qualify for this E exception, the minimum wage will be: (i) $7.25 per hour beginning on August 1, 2014; (ii) $7.50 per hour beginning on August 1, 2015; and (iii) $7.75 per hour beginning on August 1, 2016. Prohibition of Displacement: The new law prohibits employers from displacing other employees to take advantage of the lower minimum wage rates for employees under the age of 18, employees under the age of 20, or employees who qualify for the summer work travel exception. This prohibition includes total displacement of employees as well as partial displacement through a reduction in hours, wages, or employment benefits. Annual Adjustments for Inflation: Beginning in 2018, the Commissioner of Labor and Industry will adjust the minimum wage rates applicable to all employers and employees to account for inflation, up to a maximum of 2.5% per year. Beginning in 2017, the new minimum wage rates for the upcoming year will be announced by August 31 s'. However, the Commissioner may choose not to adjust the minimum wage rates for inflation if economic indicators indicate the potential for a substantial economic downturn. Michael Wilhelm I April 15, 2014 at 7.30 am I Categories: Wage and Hour I URL: http://wi).me/plvSGm-PE Unsubscribe to no longer receive posts from Minnesota Employer - Employment Law Blog. Change your email settings at Manage Subscriptions. Trouble clicking? Copy and paste this URL into your browser: http://minnesotaemployer.com/2014/04/1 5/minnesota-minimum-wage-increase-becomes-law/ 2 Minnesota job vacancies hit nine-year peak I Finance & Commerce Page 1 of 2 FINANCE&COMMERCE The construction industry has become Minnesota's fastest-growing employment sector. The industry added 6,766 jobs between February 2013 and February 2014, an increase of 8.5 percent, according to DEED data released last week. (File photo: Bill Klotz) Minnesota job vacancies hit nine-year peak By: James Warden April 1, 2014 4:22 pm 0 With help from a booming construction industry, Minnesota had more job vacancies in the final quarter of 2013 than any fourth quarter in the previous nine years, according to a Department of Employment and Economic Development report released Tuesday. Construction and extraction occupations had the second-highest job vacancy rate, which is defined as the percent of job vacancies compared to all filled Jobs in that sector. The number of vacancies nearly tripled from 1,221 in the fourth quarter of 2012 to 3,463 in the last part of 2013. While farming, fishing, and forestry occupations actually had the highest job vacancy rate, the sector's 6.5 percent rate is likely because the sample size is so small and so much of the industry is self-employed, said Oriane Casale, assistant director of DEED's Labor Market Information Office. In absolute numbers, the construction industry accounted for 6 percent of the vacancies in Tuesday's report, fifth among the sectors compared. It has become Minnesota's fastest-growing employment sector. The industry added 6,766 jobs between February 2013 and February 2014, an increase of 8.5 percent, according to DEED data released last week. Its year -over -year job growth was 3.3 times the 2.6 percent national rate. Employers reported 60,389 job vacancies for all industries in the fourth quarter of 2013, a 2.6 percent increase from the 58,864 a year earlier. There were 2.1 unemployed people for each vacancy in the last part of 2013, a decrease from the 2.6 people per vacancy in the last quarter of 2012. Casale said the number reflects the decreasing amount of unemployment, the greater number of jobs and the improving economy. The total is up from a recession low of 25,885 fob vacancies in the fourth quarter of 2009. "All signs are pointing to a pretty substantial recovery," she said. http://fmance-commerce.coml20l4/04lminnesota job -vacancies -hit -nine -year -peak/ 4/2/2014 Minnesota job vacancies hit nine-year peak I Finance & Commerce Page 2 of 2 On the other hand, Casale said she was surprised by the production occupations' comparatively modest 1.9 percent vacancy rate. A DEED survey of 59 establishments in spring 2013 found that 66 percent of respondents thought manufacturing jobs are hard to fill, and the complaint has been a recurring one. Casale said the issue is a real one but that manufacturers are making up for it by an increased willingness to hire workers right out of training programs, instead of limiting their search to experienced workers. The health care and social assistance industry, which had 20.1 percent of the vacancies, accounted for the largest number of openings in pure numbers — likely because it makes up such a large share of the workforce, Casale said. The sector had 12,156 vacancies in the last quarter of 2013. Although that's up from 11,828 vacancies a year earlier, the job vacancy rate held steady at 2.8 percent. Even so, hospitals continue to see a need for workers, said Wendy Burt, a spokeswoman for the Minnesota Hospital Association. Metro hospitals always have vacancies because the level of acute care they provide requires more experienced employees. And location can create hiring difficulties for some rural hospitals. "Our hospitals always talk about recruiting," Burt said. The retail trade industry, which made up 14.6 percent of the total job vacancies, climbed from 8,239 vacancies in 2012 to 8,787 in 2013. Manufacturing was at 10.9 percent. Accommodation and food services accounted for 8.9 percent. "While there are still hardworking Minnesotans looking for employment, our data suggest the labor market is coming back into alignment in the wake of the recession," DEED Commissioner Katie Clark Sieben said in a press release. "Increased job vacancies are a sign that the economy is growing and companies are looking for skilled workers." The proportion of vacancies for part-time jobs, defined as fewer than 35 hours per week, stayed constant from 2012 to 2013 at 39 percent. The proportion of seasonal employment also held steady at 14 percent. Postsecondary education or training beyond high school was required for 38 percent of the vacancies, and 53 percent required at least a year of experience. The median wage offer for all vacancies was $13 an hour, a notch down from $13.14 a year earlier. That's in line with results from a monthly index compiled from surveys of supply managers in Minnesota and eight other states. Respondents to the Business Conditions Index predicted that wages in the region will increase an average of just 1.8 percent over the next year even as employment continues to grow. 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