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03-24-15
Am Lakeville AGENDA Economic Development Commission March 24, 2015 — 4:30 p.m. Cite Hall, Marion Conference Room 1. Call to order 2. Approval of January 27, 2015 minutes 3. Discussion of 2014-16 Strategic Plan for Economic Development 2014 Work Program 4. Update on the Status of the County Road 50 Study (to be presented at the meeting) 5. Directors Report 6. Adjourn Attachments: February, 2015 Building Permit Report "Open to Business program helps Dakota County companies grow," StarTribune, March 13, 2015 "Fiber optic backers making their pitch in Dakota County," SunThisweek.com, March 12, 2015 "Twin Cities housing market shakes off the 2014 slump," March 12, 2015 "Wisconsin business owner says he's expanding in Minnesota," March 10, 2015 "Uponor plans Apple Valley expansion," StarTribune, March 7, 2015 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES January 27, 2015 Chair Starfield called the meeting to order at 4:34 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Starfield, Matasosky, Tushie, Vlasak, Collman, Longie, ex -official member Tim Roche, City Administrator Justin Miller, and Mayor Matt Little Members Absent: Comms. Emond and Smith Others Present: David Olson, Community &Economic Development Director; Rick Howden, Economic Development Special' . � :_ 2. Approval of November 25, 2014 meet in. min Wes Motion Comms. Tushle/Coltman moved to approve the minutes of the November 2; _°#� meeting a�a presented. Motion carried unanimously.",,' 3. Presentation of-? 14 ' nual Retort Mr. Olson pre ted the', x.14 Annuallponomic Development Report. 4. RevieW,,pf ntract r.Pvelopment for BTD/Fulford Group Project Mr.: -Olson' st # that" 'EDC % d This proposed project application at the August 26th me ti's an propos 1F Plan for the project at the October 7th Meig. The total estate%'ount of available increment for the total duration of the proposed TIF Disis$:7,832. After retaining 5% for administration of the TIF District; the net available tax increment for the project would be $1,023,941. The attached Contract for Private Development spells out the terms and conditions of the TIF assistance for the project. Eligible costs for the project are site improvements, including utility extensions, storm water basins, grading, and improvements to the adjacent County Road. Since this TIF District will be structured as a "pay-as-you-go" project, the actual amount of increment that will be available will be based on the actual amount of new taxes paid in the future. BTD is required to create a net increase of 100 jobs within the next 24 months. The jobs must have a minimum wage rate of $14.00 excluding benefits. BTD is also required to maintain their operations at this location for a period of at least five years. Economic Development Commission Meeting Minutes, January 27, 2015 Page 2 Motion Comms. Tushie/Longie moved to recommend approval for the Contract for Private Development BTD Manufacturing Expansion Project. Motion carried. Comm. Matasosky abstained, due to his company, APPRO Development, constructing BTD's expansion. 5. Review of 2015 Community Development Block Grant (CDBG) Application Mr. Olson stated that the CDBG Application had not been before for the EDC in the last few years due to the fact that there had not been substantial changes to the application that required review. One change that staff is suggesting this year is a change to the Commercial Rehab program. Currently this program only covers commercial buildings in the Downtown Special Services District, staff recommends changing the area to the Redevelopment Project Area used for TIF purposes found in the meeting packet. It is anticipated that the City will receive $116,542 in 2015, which is the same amount received in 2014. The CDA is continuing its requirement that 50% of a City's activities to be funded with CDBG funds involve activities that benefit Low - Moderate Income (LMI) households. One of the more commonly identified LMI activities in other cities in Dakota County is the Home Rehabilitation Loan program (residential rehab) administered by the Dakota County CDA. Preservation of the existing residential neighborhoods adjacent to the Downtown has been identified as a goal of the City Council approved Downtown Development Guide. Another area identified by staff is the Valley Park area, one of Lakeville's older neighborhoods. Currently, there are very few application in the queue and staff has completed a mailing to approximately 1300 homeowners promoting this program. Staff would recommend a funding level for this program of $58,542 for 2015. In 2013, the City was granted authority to use previously unused CDBG funds to study and fund accessibility improvements to City facilities under the Americans with Disabilities Act (ADA). From the study, funding was used to install power -assist doors with electronic entry access at the entrances to City Hall. In 2015, staff recommends funding to address remaining projects at City facilities along with $20,000 in funding in 2015. In 2013 completed a community visioning process utilizing CDBG funding. This process, "Envision Lakeville, provided input and data to the City's 2014-2016 Strategic Plan for Economic Development. Utilizing 2015 CDBG funding, staff recommends funding of $10,000 for implementation of "Envision Lakeville". Motion Comms. Matasosky/Tushie moved to recommend the proposed recommendation to the City Council. Motion carried. Comm. Starrield abstained due to a potential future conflict of interest. Economic Development Commission Meeting Minutes, January 27, 2015 Page 3 6. Director's Report Mr. Olson reviewed the Director's Report. Mayor Little along with Mayor Kautz from Burnsville and Mayor Larson from Farmington attended the County Board Administration Finance and Policy Committee meeting held on December 16tH County staff had taken the item of eliminating reference to livable wage jobs in the County's TIF policy from the meeting agenda. Mayor Little addressed the Board and indicated that the City would like to work with the County on Economic Development issues and that elimination of the only reference to job creation in the County's TIF Policy should be reconsidered. The County will be updating its Strategic Plan for Economic Development in 2015 and cities in Dakota County will have the opportunity to provide input during this process. This past Monday, our City Council approved a liquor ordinance amendment to allow for brew pubs and tap rooms in Lakeville. Last year the City Council approved a Zoning Ordinance amendment to allow for these types of establishments in Lakeville. Adoption of the ordinance amendment was the last step to allow those types of businesses to locate in Lakeville. The City and Dakota County have retained the Planning Consultant Hoisington Koegler Group who has partnered with SRF and Springsted to analyze options for the reconstruction of County Road 50 between Ipava Avenue and Dodd Blvd. The first neighborhood meeting on the County Road 50 project was held on Thursday, November 13tH. Individual meetings with business owners in this area took place in December before the holidays. Based on these discussions, the consultants are developing more detailed concepts for the proposed road improvements to County Road 50 adjacent to these businesses. A second round of meetings with business owners will take place in February. On January 22"d, the Planning Commission will be reviewing a preliminary and final plat application and conditional use permit for a new SuperAmerica gas convenience store to be located at 185th Street and Orchard Trail just east of Buffalo Wild Wings in the TimberCrest Development. Joe Julius resigned from the EDC as of December 31 st. Joe was recently elected to the Elko -New Market City Council and he determined that the possibility of future conflicts of interest would not allow him to continue to serve on the EDC. 7. Adjourn Meeting adjourned at 5:58 p.m. Respectfully submitted by: Rick Howden, Economic Development Specialist City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Justin Miller, City Administrator Rick Howden, Economic Development Specialist Date: March 20, 2015 Subject: Strategic Plan for Economic Development Work Plan Update The City Council approved the 2014-2016 Strategic Plan for Economic Development in January of 2014. This plan provides the EDC and staff with a basis to focus on specific initiatives during this three-year period. Attached is a summary of the progress made on the Strategic Plan for Economic Development 2014 Work Plan. The Strategic Priorities for 2014 were: • High Skill, High Wage Jobs • Infrastructure to Leverage Opportunities • Business Retention and Expansion • Incentives and Tools to Achieve Success Enhancing a Pro Business Climate High Density Housing Recommended Action: Discuss the progress made in 2014 and identify work plan priorities for 2015. 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O 3 t� cz tn Ln 3 'y C� U t]A N o cu 4-J O o o - .y o a. m '~ U cz4-1 V 9, Vi Oa U �, Q, � L N 4-J � 3 -c �° C bD p q) O o V o Ln M a In Ln Ct r -IO O O Ln vn cz_ �n U c h L_ O C .O 3O 3z a �.y oc� Ln "� +4 ' y '� LU. •rs '� � CO +, o y � � O cu cxa ci4-1 V5 o•aQ iJ O y O � O � O � O CIO m on � Q C U � U tea¢ O 'C � � O c cz a, U 9 U U C 'O O O O � V C ct U V O 'C Ln _O O V) N .V) E E i o o p N bA 0 o w N ci..� City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Justin Miller, City Administrator Rick Howden, Economic Development Specialist Date: March 20, 2015 Subject: March Director's Report The following is the Director's Report for March, 2015. Building Permit Report The City has issued building permits with a total valuation of $19,480,108 through February. This compares to a total valuation of $17,226,431 for building permits issued through February of 2014. The City issued commercial and industrial permits with a total valuation of $1,527,000 through February compared to a total valuation of $1,565,000 during the same period in 2014. The City has also issued permits for 41 single family homes through February with a total valuation of $13,749,000. This compares to 43 single family home permits through February of 2014 with a total valuation of $14,342,000. The City has issued permits for 10 townhome units through February with a total valuation of $2,504,000. This compares to zero townhome permits issued through February of 2014. United Products Closing City staff recently confirmed United Products/Allied closed their business location at 21470 Grenada Avenue in Airlake Industrial Park. United Products was purchased by Allied Building Products several years ago. United Products/Allied is a wholesale distributor of roofing, siding, and windows. They purchased their Lakeville location in 2002. It was an existing building that was previously known as the Monroe Trucking building. Shortly after they opened they had 10 full-time employees and four seasonal employees. According to a United Products employee that was moving items out of the building when I stopped by recently, the facility in Lakeville was too large for the amount of business they were doing. The company plans to lease the property which consists of a 45,000 square foot building on nearly 10 acres. Letters to MOM Brands Attached are letters that were recently sent to MOM Brands by both the City of Lakeville and the State of Minnesota indicating our willingness to work with them and Post Holdings to attempt to ensure that they maintain a base of operations in Lakeville. It is anticipated that the transition plan for the merger of the two cereal companies will be completed sometime in May. Menasha Packaging Job Creation Numbers Menasha Packaging has submitted its first business subsidy report to the City. Since April 21, 2014, Menasha has created 16 new jobs, surpassing their goal of 15 new jobs. Average base wages for the 16 new jobs is $23.07, which is in excess of the goal of an average wage of $15.00. Additionally, the 16 new jobs also have an average hourly value of benefits of $9.67. Development Update On March 16th the City Council approved the Final Plat for Summerlyn 4th and 5th Additions. This Lennar Homes development is located between Dodd Blvd. and Holyoke Avenue and north of 194th Street. These two additions will be comprised of 57 new single family lots. Also on March 16th, the City Council approved the Final Plat for Feldman Heights. This is a new 25 lot single family subdivision located east of Dodd Blvd. and north of Huxley Avenue. The City also recently issued a building permit for a new medical office building to be constructed at the corner of 185th Street and Kenwood Trail as part of the Oak Corner office development. This will be the third and final office building in this development and is planned to be occupied by Diagnostic Image Center. EDC Member Appointments On March 16th, the City Council re -appointed Jim Emond Sr. and Sheila Longie to fill the remaining one and two year terms created by the resignation of Joel Akason and Joe Julius. The new members that were appointed to three year terms are Quenton Scherer with Metro Equity, Bob Gillen, owner of Porter House Restaurant in Lakeville along with other restaurants in other communities, and Steve Rajavuori with REI Property Management. The new appointments become effective April 1, 2015 and run through March 31, 2018. The first meeting for the newly appointed members will be April 28, 2015. City of Lakeville D�oitinu�a F^ 'Ms J4#n March 6, 2015 Chris Neugent Chief Executive Officer MOM Brands P. 0. Box 1025 Lakeville, MN 55044 Dear Mr. Neugent: On behalf of the City Council, and the citizens of Lakeville, I am extending an offer for you to meet with myself and Lakeville City staff to discuss how we can be of service in helping to continue a base of operations for Post Holdings and MOM Brands right here in our city. As I am sure you have come to discover, Lakeville is an excellent fit for a base of operations. We are nestled between two major Minnesota highways, and are close to the Minneapolis/St. Paul airport creating ease of access for yourselves, your employees, and potential partners or customers. We have a highly educated work force necessary to operate a regional headquarters in the near term, and sustain such a base long into the foreseeable future. Moreover, our City Council is highly supportive of our businesses and is at -the -ready to be a long term partner in the success of your company. The City of Lakeville is willing to do whatever it can to facilitate continued operations in Lakeville by Post Holdings and will partner with the State of Minnesota Department of Employment and Economic Development on any programs that they may have available. Please contact myself, City Administrator Justin Miller (952) 985-4401, or Community and Economic Development Director David Olson at (952) 985-4421 to set up a meeting that works best for your schedule. Sincerely, Matt Little Mayor c: City Council Members Justin Miller, City Administrator David L. Olson, Community and Economic Development Director 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400.952-985-4499 fax www.ilakevillemn.gov • Department of Employment and Economic Development March 5, 2015 Chris Neugent Chief Executive Officer MOM Brands P.O. Box 1025 Lakeville, Minnesota 55044 Dear Mr. Neugent: The State of Minnesota has enjoyed a long and mutually beneficial relationship with MOM Brands. This relationship has helped both the state and the company become leaders in the ready to eat food industry. With the recent announcement of the acquisition of MOM Brands by Post Holdings we hope that this strong relationship continues to grow into the future. Minnesota has long been a leader in the food industry and it continues to be a significant part of Minnesota's diverse economy. With over 45,000 employees in the food industry and home to some of the largest food companies, this industry sector remains a vital part of the state's economy. We look forward to our continued relationship with MOM Brand's as you transition to new ownership and resulting restructuring of the organization. As more information comes available, we would be excited to discuss how Minnesota can assist you in this process, Please do not hesitate to contact me at 651-259-7440 or Kevin.mcKinnon@state.mn.us should you have any questions. Sincerely, ��- A -, / - - --/ Kevin McKinnon Deputy Commissioner of Economic Development 1st National Bank Building ■ 332 Minnesota Street, Suite E-200 ■ Saint Paul, MN 55101-1351 USA ■ www.mn.gov/deed Toll Free: 800-657-3858 0 Phone: 651-259-7114 ■ Fax: 651-296-4772 ■ TTY: 651-296-3900 AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER N °` g S S N S S N S S S S S S S S S S S S S S S S S S S S S -• S S S S a C O C O fV O O O O C O O O O O O C O 0 6 6 6 6 6 6 6 �6 O O o C 00 M W V1 M N ool ti �y O N N V) G � a 0. 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I g �O pp„pi O\ ti 0530 C85 °850 055 55855 588 8 X353 55 3 C,4 C C,4 to Oi 00 M M to O 00 C to C C ON V- N Ci W) tn M O\ W _° N O C D\ O C C M a; C to C vi C kn co kn O C O �C M --� M M V- 1n ON 1.0O\ M `p \c tn O\ ti M O 0 t O l- 0 0 to � Nq to O O --� O O O �--i O CN O N cM M 0 00 O M M O .r r V N �, •y Gi ld T o ar. o Q o n£ s w U a U o v v°� a3i " UO 'c ,� L: o SO y a+ p ,Q d q �• �• f7 y '� a�w >> O O O ani m .� O b0 h �' O x rx> J2 O a¢c�v�, �a33 v� �uA R iE M&9 m ¢w vA Ii F° 3116/2015 StarTribme- Prird Page * StarTr1bune Open to Business program helps Dakota County companies grow Article by: Todd Nelson Special to the Star Tribune March 13, 2015 - 11:38 PM Randy Stenger knows how to move mountains — or at least big piles of dirt — and offers customers the chance to do that and more with excavators and bulldozers at Extreme Sandbox, his "extreme adventure" company in Hastings. But when a financing gap threatened to slow the company's growth, he tumed to Dakota County's Open to Business program and business adviser Laurie Crow for assistance. "We were dead in the water there for a moment," Stenger said. 'We had all the approvals but ultimately we were just a little bit short. I was able to engage [Open to Business] at the end and get through their program some funding to fill up that gap. I know I would have gotten there, but it would have taken longer and been more difficult." Open to Business offers free business counseling to prospective and current Dakota County businesses and to county residents who have businesses elsewhere. It's a partnership between Dakota County Community Development Agency, Dakota County cities and the nonprofit Metropolitan Consortium of Community Developers. The program, entering its third year in Dakota County, provided nearly $327,000 in loans to Dakota County businesses and residents from January 2013 through September 2014, the most recent period for which data was available. Open to Business helped leverage five bank loans for more than $1.4 million and served more than 300 new and existing businesses in that same period. Companies that Open to Business assisted have created more than 50 jobs since the program's inception in Dakota County, Crow said. The most common types of business ideas she sees involve services, from day-care centers and auto repair shops to retail and restaurants. Stenger, who had worked as a corporate retail consultant, founded Extreme Sandbox in 2012 on a test basis, inviting customers to navigate a course and complete tasks behind the wheel of a bulldozer, excavator or other piece of heavy equipment. As it proved popular, especially as a team -building exercise for business executives, Stenger decided to buy the 10 acres of land he had been leasing and build a small office building there. At the last minute, however, Stenger came up some $30,000 short. He had put up his own money and what he got from the bank and Small Business Administration loans. Stenger, who had gotten some early advice from Crow, retumed to her at the suggestion of his bank. "Open to Business was a saving grace," Stenger said. "They had additional funds, some resources to apply through their program. They were able to recognize the potential for this new business and that's where they stepped in." Boosting city resources While Open to Business can help entrepreneurs manage gaps in their financing, as in the case of Extreme Sandbox, it also helps cities offer resources for businesses. "The cities want to be able to support all of their businesses, big and small," Crow said. "They just don't have the knowledge, connections and infrastructure to do so. A city certainly can answer questions on licensing or zoning but any time it comes to 'Will this business succeed?' or'Is this a good idea?' it gets a little precarious for them. As a neutral third party, we can have an objective opinion to help start those businesses or potentially expand them." hftpJAN".startribLm.com/prirtaitdeMd=296285911 d=296285911 W 3/16/2015 StarTribune - Print Page Crow said she wanted to remind owners of existing businesses that the program is there for them as well. "It's OK at any level to ask for help," she said. "No question is too small." City officials can refer calls they get from people asking about business plans or bank financing to Open to Business, said Rob Smolund, the program's manager and a business adviser. "If the cities were to hire someone, it would be so expensive," Smolund said. 'We figured out where the economies of scale let us create a program ... the cities will buy into with county support. Now they can feature it and own it as a program to serve their residents and businesses and yet we provide all the work." Open to Business offers more than any individual city in the county could offer, said David Olson, Lakeville's community and economic development director. "They provide access to capital, they provide access to technical services, they have relationships with lenders, none of which the city is set up to do," Olson said. Bruce Nordquist, Apple Valley's community development director, said Open to Business can even help businesses in the very beginning stages. "The Minnesota-based Fortune 500 corporations, and we have several of them, many of them started in a garage or in a small facility and now are corporate leaders in the Twin Cities," he said 'We've had this notion of, 'Where is the next one, who might it be?' I think we want to foster an environment for allowing that to occur." Todd Nelson is a freelance writer in Woodbury. His e-mail is todd_nelson @mac.com. © 2015 Star Tribune httpJMww.startribLm.com/prirtarficle/?id=296285911 212 SunThisweek I Fiber optic backers making their pitch in Dakota County Pagel of 2 6 sunthisweek.com http://sunth i sweek. com/2015/03/12/fi ber-optic-backers-mak i ng-thei r -pitch -i n-dakota-county/? utm_source=wysi ja& utm_medium=email&utm_ca m paig n=Daily+Newsletter Fiber optic backers making their pitch in Dakota County By John Gessner March 12, 2015 at 12:02 pm Businesses would be able to tie into countywide broadband Scott County has a high-speed, fiber optic network available for businesses and Internet service providers to tap into. Neighboring Dakota County doesn't. One result? Up to 10 companies that were wooed by Dakota County communities instead chose Scott County for its access to limitless bandwidth, according to Craig Ebeling. Ebeling is a consultant for the Dakota County Broadband Initiative, an effort to complete a countywide fiber optic network for local governments and, ultimately, for commercial users. Once the government network is completed, the county and its cities would make it available to telecommunications providers. The consortium would be a wholesaler of fiber access on an open -access basis, meaning any telecom provider could wire in. Ebeling made the pitch for a fiber network to Burnsville City Council members at their March 10 work session. The Dakota County Broadband Initiative is now bringing its recommendations to local elected officials. The fiber effort, which included a study by broadband consultant Design Nine Inc., has been discussed for years by Dakota County city and county managers. The Dakota County Community Development Agency is now the lead group. Costs of the Design Nine study were shared by the CDA, the county and cities. "The goal of all of this is to push fiber closer to the people who need it" — businesses that need high-speed connections to compete in the global economy as well as people who work at home, Ebeling said. Fiber is imperative in business today, Ebeling said, pointing to the businesses that have chosen Scott County since it built its network in 2006. Among those that also looked at Dakota County, the lack of fiber "was a dealbreaker in most of those competitions," said Ebeling, a former Burnsville city manager. The businesses included Emerson Process Management, which took over an unfinished, 490,000 -square -foot building in a Shakopee industrial park. The company had been looking in Lakeville, Ebeling said. Burnsville conducted its own broadband study in 2006, electing not to become a municipal broadband provider. This project is different, Council Member Dan Kealey said. Private -sector telecom providers don't have the capital to extend fiber widely, he said, echoing findings in the Design Nine study. Meanwhile, Scott County "smacked us in the face" with its fiber advantage, he said. It's no time for a "hide your head" approach, Kealey said. "Shame on us for not being long-sighted enough to figure that out before," he said. http://sunthisweek.coml2015/03 / 12/fiber-optic-backers-making-their-pitch-in-dakota-count... 3/13/2015 SunThisweek I Fiber optic backers making their pitch in Dakota County Page 2 of 2 Council Member Bill Coughlin voiced skepticism, saying he hasn't been approached by businesses wanting fiber access. "The costs are not nailed down" and many unanswered questions remain, he said. Miles to go There are already 122 miles of fiber in Dakota County, most for government use. Burnsville, the leader with 27 miles, completed a fiber ring in 2008 that transmits data to monitor the city's water system. Eagan has 17 miles of fiber. Those cities have a small number of private -sector users on their systems. Farmington has five miles of fiber. Apple Valley has 10 and a shared fiber route with the county, Eagan, Burnsville and School District 196. "Everyone is working hard, but we may not be working in concert," Ebeling said. The Dakota County Broadband Initiative recommends a 21 -mile buildout to complete an institutional network, at an estimated $3.4 million cost. The "I -Net" must be completed before a "C -Net" can be offered, Design Nine says. Both would be operated under a countywide joint -powers agreement. Details about network management, operating costs, pricing of C -Net services and the revenue split between joint -powers members remain to be worked out under a joint -powers plan. Some Burnsville council members asked whether Dakota County alone might be persuaded to shoulder the entire $3.4 million buildout cost. Council Member Mary Sherry pointed to the county -leading 27 miles of fiber in which Burnsville has already invested. "Let's face it — we've already done a lot," she said. "And I don't want to just give that away." http://sunthisweek.coml2015/03 / 12/fiber-optic-backers-making-their-pitch-in-dakota-count... 3/13/2015 SunThisweek I Fiber optic backers making their pitch in Dakota County Page 2 of 2 Council Member Bill Coughlin voiced skepticism, saying he hasn't been approached by businesses wanting fiber access. "The costs are not nailed down" and many unanswered questions remain, he said. Miles to go There are already 122 miles of fiber in Dakota County, most for government use. Burnsville, the leader with 27 miles, completed a fiber ring in 2008 that transmits data to monitor the city's water system. Eagan has 17 miles of fiber. Those cities have a small number of private -sector users on their systems. Farmington has five miles of fiber. Apple Valley has 10 and a shared fiber route with the county, Eagan, Burnsville and School District 196. "Everyone is working hard, but we may not be working in concert," Ebeling said. The Dakota County Broadband Initiative recommends a 21 -mile buildout to complete an institutional network, at an estimated $3.4 million cost. The "I -Net" must be completed before a "C -Net" can be offered, Design Nine says. Both would be operated under a countywide joint -powers agreement. Details about network management, operating costs, pricing of C -Net services and the revenue split between joint -powers members remain to be worked out under a joint -powers plan. Some Burnsville council members asked whether Dakota County alone might be persuaded to shoulder the entire $3.4 million buildout cost. Council Member Mary Sherry pointed to the county -leading 27 miles of fiber in which Burnsville has already invested. "Let's face it — we've already done a lot," she said. "And I don't want to just give that away." http://sunthisweek. coml2015/03/ 12/fiber-optic-backers-making-their-pitch-in-dakota-count... 3/13/2015 3/13/2015 StarTribune - Print Page * StarTribune Twin Cities housing market shakes off the 2014 slump Artide by: Jim Buchta Star Tribune March 12, 2015 - 8:43 PM The housing recovery in the Twin Cities appears to be back on track. Home sales in February rose 1.3 percent, their biggest gain since October 2013, and a sign of optimism for the months ahead. "If February is any indication, this spring is shaping up to be everything that spring markets should be," said Mike Hoffman, president of the Minneapolis Area Association of Realtors. The group said Thursday there were 2,557 sale dosings in the metro area with a median sale price of $202,000, a 10.4 percent jump and the 36th consecutive month of annual increases. The increase in sales — though small — comes after a disappointing 2014 when sales were down nearly 7 percent. While the spring buying season doesn't officially begin until March, buyers hit the listings earlier than usual. "Right after the Super Bowl it just went crazy," said Bill Hirsch of ReMax Results, who recently got four offers on a 2,400 -square - foot loft condo in St. Louis Park. The two-story unit, in a converted school building, was priced at $374,900. "On the listing side, it's been real busy, and the buyers have been coming out of the woodwork, too," Hirsch said. Some attribute the uptick to pent-up demand and historically low mortgage rates. Pending home sales — an indication of future dosings — increased 21.8 percent over last year. Sellers brought 5,690 new listings to the market, a 23.2 percent annual increase. Despite the slew of new listings last month, the market's inventory is still tight. There were 12,700 properties on the market last month, a 2 percent decline from last year. The listing shortage was particularly acute for investors and first- time buyers on the hunt for bargains. There was a nearly 30 percent decline in foreclosure and short sale listings last month. Realtor Bill Hirsch listed this 2,400 square -foot condo built in a former schoolhouse in St. Louis Park, photograpphed Wednesday, March 11, 2015 in St Louis Park, M. ELIZABETH FLORES/STAR TRIBUNE) ELIZABETH FLORES • eflores@startribune.com ELIZABETH FLORES • eflores@startribune.com, Bill Hirsch met with his client, Susan Gang, to discuss the sale of her St. Louis Park condo. Photos by ELIZABETH FLORES • eflores@startribune.com, The condo, 2,400 square feet and a former schoolhouse, recently attracted four offers, Hirsch said. Feed Loader, httpJ/www.startribune.com/prirtarticle/?id=296136491 1/2 3/13/2015 StarTribune - Print Page In Minnesota and across the country, the foreclosure crisis is quickly abating. This week, the Minnesota Homeownership Center said the number of homes lost to foreclosure in Minnesota last year fell to the lowest level since 2005. Statewide, there were only 8,309 foreclosures last year, a 29 percent decline from 2013. "Foreclosure prevention efforts across the state, combined with improvements in how banks and servicers deal with struggling homeowners and a slowly improving housing market are allowing more homeowners to avoid losing their homes," said Ed Nelson, spokesman for the Minnesota Homeownership Center. While investors are fleeing the market because they now have so few options, traditional buyers are taking their place. Pending sales to buyers who will occupy the property rose a whopping 41.5 percent. That shift is creating deep demand for move -in ready properties, especially in popular neighborhoods that are walkable and close to public transportation. Barb Duthler, a longtime agent in south Minneapolis and the inner -ring suburbs, said that demand now exceeds supply in some areas, creating stiff competition among buyers. She has a listing in south Minneapolis that hit the market on a recent Friday and within 48 hours had three offers. "That is kind of typical," she said. "There's a pool of buyers out there who have already lost on a property, so they re much more willing to pounce sooner." Jim Buchta • 612-673-7376 © 2015 Star Tribune http://www.startribLm.com/priritarticle/?id--296136491 2/2 3/10/2015 StarTribune - Print Page StarTribune Wisconsin business owner says he's expanding in Minnesota Associated Press March 10, 2015 - 9:25 AM MADISON, Wis. — A Wisconsin business owner upset over enactment of a right-to-work law and other policies says he is expanding in Minnesota because the economic policies there are more conducive for his operation. James Hoffman, president of Hoffman Construction in Black River Falls, said Monday that he was accelerating plans to expand an office in Lakeville, Minnesota, that currently has two full-time employees. Hoffman testified against the right-to-work bill that passed the Wisconsin Legislature last week and that Gov. Scott Walker signed on Monday. Hoffman says he worries that the law will cost his business money and he believes Minnesota's proposal to increase spending on transportation projects that his highway construction business could bid on would be good for his operation. Hoffman says the decision is based on business, not politics. © 2015 Star Tribune httpJ/www.startribune.com/printarbcl&'A&-295751891 1/1 3/10/2015 StarTribune - Print Page *SIt' arTr1bune Uponor plans Apple Valley expansion Article by: Todd Nelson Special to the Star Tribune March 7, 2015 - 2:00 PM Uponor, a multinational maker of plumbing, heating and cooling systems, is expanding its Twin Cities manufacturing operations in an $18 million project at the company's North American headquarters in Apple Valley. Renovating and expanding an existing building will add 88,000 square feet of manufacturing and office space to the campus of Uponor, Apple Valley's largest employer. Uponor's new building, right, will be next to it's North American corporate headquarters, left. Feed Loader, The additional space and manufacturing equipment the company plans to buy will help Uponor meet growing demand projected for Uponor's cross-linked polyethylene (PEX) tubing products in commercial and residential markets, said Bill Gray, president of Uponor North America. The expansion will lead to the addition of "in the neighborhood of 100 new jobs" in the Twin Cities metro area over next two or three years, Gray said in an interview. The company, which has a distribution center and resin -processing center in Lakeville, has hired more than 130 employees over the past three years and has close to 500 in the Twin Cities. Parent company Uponor Group, headquartered in Finland, has 4,000 employees worldwide. State, city incentives To assist Uponor with the expansion, the state Department of Employment and Economic Development has made up to $1.5 million available through the Minnesota Investment Fund and the Job Creation Fund. The company also has requested a deferred loan of $800,000 from the Apple Valley Economic Development Authority and would receive $1.1 million over a nine-year period through a tax increment financing district. The City Council will conduct public hearings on the proposed incentives April 9. Uponor studied available financial incentives and the logistics of expanding locally or in another state or country before deciding on Apple Valley, where it's had offices for 25 years, Gray said. Work on the expansion is to begin this spring and be complete by Dec. 1. Gray said the decision to stay in Apple Valley took into account the available financial incentives, the proximity of the company's headquarters, and a "critical mass" of customers, suppliers and employees in the Twin Cities. "It was really an all -in, all -things -considered decision," Gray said. "Incentives are always important because they change the retum-on-investment formula. The important thing to remember is that they are only based on delivery of pre -agreed milestones" including the number of jobs the expansion creates. Apple Valley Mayor Mary Hamann -Roland said she and other city officials went through a number of sleepless nights "to make sure that everything came together like clockwork so that Uponor could make the right decision." When you're competing with countries that are south of us, when you're competing with states that are south of us who have a different type of tax climate and incentive structures, it becomes disconcerting," Hamann -Roland said. "But in the end, it's about the whole decision. You have to look at all the aspects of the kind of investment that this kind of company is making." Hamann -Roland said she hoped Uponor's decision to expand in Apple Valley would trigger additional development in the city. http://www.startribu ie.com/prirtarficief?id=295419531 1/2 '3/10/2015 StarTribune - Print Page "What I'm excited about is that Apple Valley has proven that we have the right people, the right resources, the right business climate and the right place to deliver a solid return on Uponor's investment," Hamann -Roland said. "I'm proud to say this innovative and forward -thinking, green company will continue to grow and thrive in the city of Apple Valley." Uponor, first known as Wirsbo, got its start in 1620 in Sweden, making steel and weapons for the country's king. Today, the company produces plumbing, fire safety, radiant heating and cooling and hydronic piping systems for residential and commercial markets. Uponor is a publicly held company but its primary shareholders are long-term owners, Gray said. Accommodating growth The expansion should accommodate Uponor's growing production needs for the next two or three years, Gray said. The company will remodel an existing 34,000 -square -foot building and complete a 54,000 -square -foot addition to it. Uponor bought the building in 2008, just before the recession and housing slump slowed demand for its residential products. Uponor responded by expanding its business in commercial products for hospitality, institutional and multifamily buildings, Gray said. Residential sales began to rebound in the middle of 2012. "We're seeing significant growth in commercial and residential construction, and this expansion will ensure we match forecasted growth and demand for our PEX systems," Gray said in a statement. "Uponor has been an outstanding job creator since opening its North American headquarters in Apple Valley in 1990," Katie Clark Sieben, commissioner of the Minnesota Department of Employment and Economic Development, said in a statement. Todd Nelson is a freelance writer in Woodbury. His e-mail address is todd—nelson@mac.com. © 2015 Star Tribune httpJ/www.startribune.com/printarticle/?i'd--295419531 212