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HomeMy WebLinkAbout01-26-16Lakeville AGENDA Economic Development Commission January 26, 2016 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of November 24, 2015 minutes 3. Presentation of 2015 Economic Development Annual Report (copies to be distributed at meeting) 4. Review of Maxfield Research Presentation 5. Directors Report 6. Adjourn (Note: Because of the Chamber of Commerce Annual Meeting on Monday, 1/25, the City Council moved its January Work Session to Tuesday, 1/26 at 6:00 p.m. As a result, we will need to end the EDC meeting by 5:45 p.m.) Attachments: • 2015 Year End Building Permit Report • December 2015 Building Acitivity • EDC 2016 meeting schedule • Bus rapid transit expansion plans for Lakeville, SunThisweek 1-14-2016 • Homebuilding increased in the Twin Cities last year, but mostly for apartments, Business, 1-5-2016 • In the Twin Cities, Local Leaders Wield Influence Behind the Scenes, The New York Times, 12-28-2015 • Lakeville Building boomed in 2015, SunThisweek 12-23-2015 • Frandsen Financial agrees to buy Provincial Bank, StarTribune 12-10-2015 • Abdallah Candies expansion in Apple Valley to receive $170,000 in state aid, StarTribune 12-3-2015 • State Gains 9,100 Jobs in December, DEED 1-21-2016 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES November 24, 2015 1. Chair Starfield called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Starfield, Scherer, Vlasak, Emond, Matasosky, Smith ex - officio members: Mayor Little, City Administrator Miller and Chamber President Roche. Members Absent: Comms. Longie, Rajavouri, Collman, Gillen Others Present: David Olson, Community & Economic Development Director; Daryl Morey, Planning Director; Rick Howden, Economic Development Specialist. 2. Approval of September 29, 2015 meeting minutes Comms. Matasosky/Emond moved to approve the minutes of the September 29, 2015 meeting as presented. Motion carried unanimously. 3. Requested Discussion of current Electronic Message Center Sign Ordinance Requirements Chair Starfield stated that he had asked Director Olson to add a discussion of the current sign ordinance as it relates to electronic message center signs for the next EDC Meeting. Chair Starfield then turned the discussion to Director Morey to give some background on the ordinance. Director Morey reviewed the progression of the ordinance relating to electronic message centers since 2012. Previously, the ordinance only allowed electronic message centers in the Public and Open Space (P/OS) Zoning District, in which three (3) current signs exist. The ordinance was later changed to allow for electronic message centers in commercial districts; however it was proposed to have a maximum rate of change of 15 minutes. Input was sought from the Economic Development Commission which recommended a maximum rate of change of 30 seconds based upon input from businesses as well as a representative of Holiday Station Stores. In the Fall of 2012, the Planning Commission recommended a maximum rate of change of 1 minute and to revisit the issue in a year or two, once some signs have gone into operation. Director Morey also stated that currently there are six (6) active electronic message centers as well as three (3) applications from Kwik Trip for electronic message centers pending. Director Morey explained that the Planning Commission usually holds a work session during the winter to discuss a number of Zoning Ordinance amendments and would recommend the Planning Commission discuss this topic at that time. Chair Starfield commented that the barriers to entry for businesses include the way the sign needs to be constructed and the significant setbacks needed. These make the signs aesthetically pleasing and businesses should be able to use the sign's full potential. Director Morey stated that during previous discussions at the Planning Commission, the biggest concerned raised was the distraction that animation caused. Comms. Smith stated that the City should allow more that what we currently allow. Comms. Matasosky stated that during the past dioitssK>ns the initial fear was jumbotrons along the freeway, which led to many of the regulations. Director Morey stated that the regulati,"V -In place were p1 11,1; ,ublic safety as well as aesthetics. Chamber President Roche stated that the City should T10ok at the gond"the signs provide businesses with versus the potei. bad that coin=happen. Chair Starfield questioned what e*rc6ifi6iftis in plac 'pr having people with hand-held signs outside of businesses and if fey c6n6ot be enft ed, then enforcement for the electronic message" ►r z>Oquld be 6oved, „' .` Mr. Roche mentior*d that in his conversOWs with representatives from Holiday Station Stores, that Lakeville`49�,,current:iolicy is not iut of the norm. Director. l iorey .Steted that ' fie will work with -the City's planning consultant to look at changed other cities have rriade recently and will include that information in the Planning ComrASsjpn's work seen on updates to the City's Zoning Ordinance. 4. Presentation of Downtown Development Guide Update Mr. Olson stated that references to the Downtown Development Guide that was completed in Deoember of 2006 have come up numerous times this year during meetings and discussions regarding issues such as the outdoor patio ordinance amendments and the proposed Holyoke Avenue street and sidewalk reconstruction project. Staff has been requested to prepare a status report on the progress on the recommendations contained in the 2006 Plan. Mr. Olson then presented an update on Downtown Developments since 20016. Following the presentation, Mayor Little commented that an update to the plan should include a change of policies for downtown that include higher density for residential areas. 5. Proposed purchase and demolition of property located at 9210 202nd Street West Mr. Olson stated that the property at 9210 202nd St. W. located at the southeast corner of Dodd Blvd. and Kenwood Trail, known as the Scheffler Property was recently listed for sale. This property was formerly a gas service station and for the last 30 plus years was used as a single family home for Mr. and Mrs. Scheffler. Taking into account the additional right-of-way that will be needed along both Dodd Blvd and Kenwood Trail and the County's access spacing requirements from an intersection, the remainder parcel would be very difficult to develop. In addition, the condition of the existing buildings will likely continue to deteriorate, particularly if they remain vacant. As a result, staff is recommending that the City pursue the possible acquisition of this property using Community Development Block Grant (CDBG) funds and funds from the decertified Southfork Apartments Tax Increment Financing (TIF) District Loan Repayment. The City currently has $152,532 in available in CDB ,Cfinds that have been designated for Spot Acquisition and Clearance and Downtown Cade Improvement activities. No other projects have been identified for activities and thi6' City is obligated to spend down a minimum $131,067 of our total CDBG funds by ZMay 1, X016. It is recommended that the balance of the acquisition be financed with, funds that arty= -remaining in the Southfork Apartment TIF District Loan Repaymen , Orids. These funds,: n only be used for TIF eligible activities. The acquisition andrance of this prop: would be an eligible activity. Comms. Scherer/Smith movedt-Qmmend t6tt totCity Council to pursue acquisition of the property at 9210 202"d Street; m. Matasosky abstained. Motion passed. 6. Director's Report Mr. Olson reviewed •the + tor's Rep The City has issued building permits`,,;ith total vuation of $171,193,356 through October. This i§,:A,49% ina se coni red to a total valuation of $114,954,461 for building permits issued_ througIJ October 4.2014. The City has issued commercial and industrial peg[pits with "a.total YalueUQn of $44,007,000 through October compared to a total vait44#h df $9,$72,000 during the Mme period in 2014. The City- of Lakeville,.was an exhibitor at the 9th Annual Minnesota Commercial Associatic,.of Realtors'( INCAR°),-Expo on Wednesday, October 28th at the Depot in Minneapoli§..-;.^Staff was abs to network with a number of the over 500 MNCAR developer and broker professionals. Lakeville has participated in this event since 2012. Attached is a bro0hure on a new high school program that Lakeville and Prior Lake/Savage high schools will be making available to high school juniors and seniors. The program will prepare high school students for careers by teaching academic content for specific professional careers. The two career areas that program will offer beginning in the Fall of 2016 are Healthcare and Business. The City Council approved a Preliminary Plat and Conditional Use Permit for the development of the Interstate Power Systems building to be located at the intersection of Co. Rd. 70 and Highview Avenue at their November 16th meeting. City staff was notified by representatives for the Serta Simmons Bedding (SSB) Company several weeks ago that they had decided to wait until next Spring (2016) to begin construction of their new 240,000 square foot facility. Community Development staff along with the City Administrator and Council Member Doug Anderson attended two ribbon cutting events the Lakeville Chamber of Commerce hosted this week. On Wednesday, a 30 year celebration ribbon cutting was held for Valley Staffing, which is located in the Johnson Building on 210th Street. On Friday, the Lakeville Area Chamber of Commerce along with the Apple Valley Chamber of Commerce held a ribbon cutting for the Goddard School, located in the Spirit of Brandtjen Farm Commercial area. The Goddard School plans to officially open on November 30th. 7. Adjourn Meeting adjourned at 5:58 p.m. Respectfully submitted by Rick Howden, Economic Development SPatist re"Ag•... Memorandum City of Lakeville Community & Economic Development To: Economic Development Commission From: David L. Olson, Community and Economic Development Director -V Copy: Justin Miller, City Administrator Rick Howden, Economic Development Specialist Date: January 22, 2016 Subject: Maxfield Research & Consulting Presentation Attached is a presentation by Maxfield Research on the Twin Cities Real Estate Market Overview and Outlook dated November 19, 2015. The presentation provides an overview of Twin Cities real estate development, leasing and market values for 2015 as well as some forecasts for 2016. If time permits, a discussion of this information may be beneficial, particularly as we prepare for proposals for higher density multi -family projects in 2016 and beyond. W94 Maxfield Rese<mch S, CC;1SU!bIW �y�• AI yli �� _... P, u t Twin Cities Real Estate Market Overview & Outlook Presented to: Market Intelligence Team (MIT) Presented by: Matt Mullins ) Maxfield Research & Consulting, LLC November 19, 2015 Overview i 30+ years experience Diverse client base Multi -Sector Capable residential commercial public + private entities Market driven strategies Y Recommending highest & best uses Provide actionable plans Maxfield Research & Consulting, LLC is a full-service real estate advisory company providing strategic value to our private and public sector clients' real estate activities. NiEW ( J0� I Maxfield Claw MAN SI.C+•u l Pit— Stm -7- � i ( &4 Maxfield 2015 ■ 2.95 million ■ 11% pop. 65+ ■ Millennials overtaking Boomers ■ 24% people of color 2040 • 3.65 million • 20% pop. 651. • 40% pop. of color tiMaxfield 7 -County Residential Building Permits by Product Type: 2000-2014 25,000 Duplex MF 3+ ti TH w SF 20,000f - . � - i i 15,000 - P c 10,000 - - -- - — 5,000 - -- ----- 0 - - 0 11 IJ, 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Year I;; Maxfield Historic 30 -year Mortgage Rates 1972 to 2015 (YTD) 18.00% 16.00% 14.00% -- - -- - - 12.00% -. 10.00% 8.00% , • - - --- --- - -- 6.00% - --- - 4.00% -- 2.00% -- --- --__� 0.00%-r-.-r--r rrrr-rr r rr-r--rrrr� n n n n.9allo w w row m m rn rn m g o ti N m m m m m rn sn m m m m rn m m o 0 0 o g o 0 0 N N Twin Cities Median Sales Price & Resale Comparison $250,000 ---_ _ Median Sales Price ..C -Resales $200,000 -- '-t - — ---- — - -. $150,000 — — — — — /Ij— — c ' v S100,00040 -' f 550,000 - - - - - - - -- - $0-- 00 01 02 03 04 05 06 07 08 09 30 11 12 13 14 15 Kan 70,000 60,000 50,000 40,000 d 30,0009 20,000 10,000 0 Maxfield ,. r YTD housing metrics very positive Median Sales Price Price per Sq. Ft. Closed Sales Inventory Housing Affordability Days on Market 'Maxfield New Construction • Builders catering to move -up buyers • Single-family housing dominant • Lot supply tightening • Not as robust as expected this year... New Construction Median Sales Price $350,000 ---- � $160 $140 u i $250,000 $120 i $100 LL $200,000 - a $80 v $150,000 - � $100,0DD $40 $50,000 �I $20 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year rW& Maxfield 4 Metro Area Apartment Vacancy S Rent Summary $1,200 -- 1990 through 1Q2015 — to.0 err.yer.. 9.0 $1,00D -. t•.'t.un 80 $600 70 60 �$rno/ A\♦ k s e A ♦- e- a 'a' a ♦ ♦ • a ♦I ♦ ♦ ♦I ♦ ♦ e ♦ ♦ 5o a" I 1 t 40 Q $400 30 S AY) I 0 10 50 0.0 1990 91 97 93 94 1995 96 97 98 99 20DJ 01 02 03 04 2005 06 07 08 09 7010 1t 17 13 14 Year • One of the lowest vacancy rates in the country • 5,500+ new units will be delivered in 2015 • Class A properties on buying spree a Strong rent growth • Development moving to suburban locations � Ua0lel, National Multifamily Index Ranking San Francisco 1 New York City 2 San Jose 3 Oakland 4 Denver 5 San Diego 6 Minneapolis/St. Paul 7 Los Angeles g Miami 9 Northern New Jersey 10 Seattle -Tacoma 11 Portland 12 Austin 13 Orange County 14 Chicago 15 Houston 16 Phoenix 17 Source: Marcus and Millichap, 2015 5 Craa TwinCiHes6StHouseholdGrowl h • 1,200 units delivered in aI Oval HH •2a•nev HH2015 (YTD) 500,cce _ ...._. _ _ _. _____ —.— _ _ , as • For -sale market recovery f1ootoo improving outlook • Vacancy rates @ equilibrium • Short-term demand lower 2010 =a yr Q010 2010 • Strong demand 2020+ HfstariC Senior Housing ConSVOCHon • Labor — growing concern 2.660 2.000 T O 1.600 a g I.000 60o 0 ��uuuuVIVUV • New construction via "repurposing & repositioning" • Rents rising I vacancies declining • Absorption — 2nd half 2015 expected to be high • Grocers remain active (Hy -Vee, Trader Joes, Fresh Thyme, etc.) 6 Twin Cities Retail Supply & Demand Trends 3,500,000 3,000,000 B.OiS 2000,0001,50D,00D_ .' --- - - ._ _ -- -..._..—.—_-' k200, 6.0% j ti 1.000,000. _- ---. _-'. --_ _._.. _-__4.O;S500,000.__1AN,1rd 2.Ox - � 8 2010 2011 2012 2013 2011 2015 -500,000 O.OS a2O1n Construction gtat• Absorption Vacancy �V M; 6 • Lowest vacancy rates since recession..but still soft • Strong demand for Class A space; especially 1-394 & North Loop • Little construction since recession; but projects on the drawing board Historical Office Vacancy Rate: Metro Area (2006-2015) 25.0% _. . 22.355 22.5% 21.2% 20.056 17.5%173% - 18A -18.6% 16:056 17,755 f.�-..._.+-�..__. 15.0% Z e Q 10.0: --1 -Twin Cities 0.0% 4 ,----- - - - 1 - — 2006 2007 2008 2009 2010 2011 2012 2013 ' 2014 2015 • Record year for new construction — mostly in NW & SW submarkets • Demand driven by large, high -clear, & modern developments • Positive net absorption on single- and multi -tenant space • Vacancy rates down I expect upward pressure on rents 25.o -,a 20.051 S 15.0% IO.Oi4 5.0% Industial Vacancy Rate: Metro Area Vacancy Rote -O-Vacancy Rata w/Sublease 0.0:6-}--r_.—._. -.. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 �,N, Maxfield 7 • Most bank -owned has been absorbed • Industrial and multifamily housing very active; grocery seeking large acreages • Single-family — driven by school districts Apartments Renta Jr Rents r+► 0ccupaney a� Occupnnoy /y Hospitality Constmclion / Cona1—han 0��'\ Industrial For -sale MF Office Retail 0 Single Ilam y ® Sen;., Housing RenU ti occupannY J• Cansnucli•n Phase 1 Phase 2 I Phase 3 Phase 4 J V&UaAeld LV Metro Area Median Land Cost P5F Retail -Gen Retail - Free $4.42 Res. - SF I E $1.19 Res. - MF I I $3.59 I. Raw Land I i $4.81 Pad Site I I - $10.33 0 other } ( $4.15 3 Office - Gen. i � - $6A2 Mixed Use `. ! $4.157Ind. _ "/0 11 $S.OD Ind. - Other $334 Ind. - Manual ;.f t Agricultural _I $1.00 $12.00 $0.00 $2.00 $4.00 $6.00 $8.00 $10A0 PSIF Ir.� j Maxf Apartments Renta Jr Rents r+► 0ccupaney a� Occupnnoy /y Hospitality Constmclion / Cona1—han 0��'\ Industrial For -sale MF Office Retail 0 Single Ilam y ® Sen;., Housing RenU ti occupannY J• Cansnucli•n Phase 1 Phase 2 I Phase 3 Phase 4 J V&UaAeld LV • Positive outlook next 1-2 years in all RE sectors; but not as bullish as hoped • Suburban outlook good as pricing rising in core areas • Homeownership rates beginning to rebound; 151 time buyers still recovering • Apartment starts should slowly level -off • Industrial... some submarkets may be overbuilt • Positive job growth • National & International capital flowing into U.S... including Twin Cities • Interest rates... rising in December... again? • Construction costs escalating • Labor costs I labor supply I wage growth I Job growth • Land values up • Apartment development pipeline • Regulatory • How long with this upcycle last? • LRT ... will it drive more development? • Spec office ... how fast will new space absorb? • Retail - will it follow new rooftops like the previous cycle? Maxfield 6 Contact Information; 91 is - Matt Mullins Maxfield Research & Consulting LLC 612.904.7971 mmullins@maxfieldresearch.com Dn 10 Memorandum City of Lakeville Community & Economic Development To: Economic Development Commission From: David L. Olson, Community and Economic Development Director le Copy: Justin Miller, City Administrator Rick Howden, Economic Development Specialist Date: January 22, 2016 Subject: January Director's Report The following is the Director's Report for January 2016. Building Permit Report The City issued building permits with a total valuation of $200,897,819 in 2015. This was an increase of over $56 million compared to the 2014 total of $144,277,182. It is the third time in the City's history that building permits exceeded $200 million with the last time being 2004. The City issued commercial and industrial permits with a total valuation of $45,121,000 in 2015 compared to a total valuation of $13,798,000 during 2014. This is the highest valuation for commercial and industrial permits in the City's history. Previously the highest commercial and industrial valuation was $44,513,000 in 2004 The City issued permits for 361 single family homes in 2015 with a total valuation of $113,585,000. This compares to 316 single family permits in 2014. Lakeville issued the highest number of residential permits in the Twin Cities for the third year in row as reported by the Builders of the Twin Cities (BATC). The City also issued permits for 59 townhome units with a total valuation of $12,344,000. This compares to 32 townhome permits in 2014 with a total valuation of 8,222,000. This level of development would not be possible without the efforts of the dedicated and professional City staff in all of the departments that are involved with development activities in the City of Lakeville. Possible Reverse Commuting Service to the Industrial Park Tim Roche and the Lakeville Area Chamber of Commerce has facilitated several meetings with Metro Transit, Dakota County and a number of the larger businesses in the Industrial Park to discuss the possibility of providing a shuttle van or small bus to transport workers from the Apple Valley Transit Station to the Industrial Park. There appears to be interest with a number of the businesses and Metro Transit has a program that could provide partial funding for this type of service. There is an expectation that businesses will also contribute to the cost of this service. Staff will provide updates on this possible service as the discussions progress. ISD #194 MNCAPS Program Attached is a brochure on a new high school program that Lakeville and Prior Lake/Savage high schools will be making available to high school juniors and seniors. The program will prepare high school students for careers by teaching academic content for specific professional careers. The two career areas that program will offer beginning in the Fall of 2016 are Healthcare and Business. ISD #194 has received considerable preliminary interest in this program. Marketing Partners Group The Marketing Partners group met again on January 12th. This group continues to work together to share information and collaborate on opportunities to market the community as a whole or specific programs or initiatives like the new MNCAPS program. Electronic Message Sign Regulations The Planning Commission reviewed this ordinance at their January 21s' Work Session. The Planning Commission indicated that they would be comfortable recommending reducing the rate of change for messages from 60 seconds to 30 seconds and would review the rate of change again in the future. 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J OHO 8888888888008 O O O O O O O O O O O O 888888880888 N N O w 00 to N to Do �o �o 00 00 � w w cn N r - J 00 !A to O ON S S w ON 88 0 0 000 J N W N ? 0"0000000 0 0 O O O S S S S S S S S S O O O O O O O O O O O O O S O O S S S S S O O S 00 S O S 88 00 tA J O O ON ON ON N N O J (O O Cn (Ji O O In O Vi O O O O O I 88 I O I 8 8 8 8 �O �O O O O O O O O O r 0 y y QQ Q �• y /� r m Y N J th co N r• O y � OQ y 88 00 tA J O O ON ON ON N N O J (O O Cn (Ji O O In O Vi O O O O O I 88 I O I 8 8 8 8 pA W �•+ 8 88 0 8880 O O 88 O O 88 O 8 z 8 O O O O 8888 z O O p O 8 O O O �O �O O O O O O O O O $ $$ $ 8888 N J th N •-` pA W �•+ 8 88 0 8880 O O 88 O O 88 O 8 z 8 O O O O 8888 z O O p O 8 O O O December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 December 2011 December 2012 December 2013 December 2014 December 2015 YTD 2012 YTD 2013 YTD 2014 YTD 2014 YTD 2015 December 2015 Past Tw Permits 355 308 347 334 350 359 476 459 470 388 357 450 386 Building Activi elve Months Permitted Units 987 529 357 928 451 516 1,150 795 739 903 937 1,555 1,041 Five -Year Comparisons Permits Permitted Units 293 568 343 807 398 1,011 355 987 386 1,041 Permit Value 158,580,831 135,411,906 119,387,235 175,491,116 124,785,234 132,481,620 197,667,693 183,981,191 176,709,583 160,334,788 171,506,856 245,849,922 188,017,919 Permit Value 113,939,243 145,019,865 173,989,650 158,580,831 188,017,919 Permits Permitted Units Permit Value 4,282 ( 9,042 ( 1,594,264,038 5,339 10,303 2,006,692,855 4,914 I 10,093 1,965,546,718 4,914 ' 10,093 1,965,546,718 I 4,899 10,208 2,087,i110,154 Multifamily Construction as a Percentage of Total Activity Jan -15 Feb -15 Mar -15 April -15 May -15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 YTD -15 66 5 4 65 23 32 61 45 58 64 73 64 M Top Cities for Building Activity 1,470 604 528 492 440 The Builders Association of the Twin Cities has contracted with Keystone Report, a local research firm, to maintain a database with information about new residential construction permits around the metropolitan area. After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metro- politan -area municipalities in the greater 13 -county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the landllot costs. 2015 End -of -Year December Permits Lakeville Permitted Units Lakeville 38 Plymouth 215 Edina 26 Edina 200 Plymouth 19 St. Louis Park 100 Woodbury 17 Mahtomedi 81 Otsego 15 Shakopee 51 1,470 604 528 492 440 The Builders Association of the Twin Cities has contracted with Keystone Report, a local research firm, to maintain a database with information about new residential construction permits around the metropolitan area. After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metro- politan -area municipalities in the greater 13 -county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the landllot costs. 2015 End -of -Year Permits Permitted Lakeville 382 Minneapolis Blaine 291 Edina Plymouth 287 Blaine Woodbury 235 Plymouth Otsego 197 Minnetonka 1,470 604 528 492 440 The Builders Association of the Twin Cities has contracted with Keystone Report, a local research firm, to maintain a database with information about new residential construction permits around the metropolitan area. After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metro- politan -area municipalities in the greater 13 -county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the landllot costs. Economic Development Commission 2016 Meeting Schedule Mouth Date January Tuesday, January 26, 2016 February Tuesday, February 23, 2016 March Tuesday, March 22, 2016 April Tuesday, April 26, 2016 May Tuesday, May 24, 2016 June Tuesday, June 28, 2016 July No Meeting August Tuesday, August 23, 2016 September Tuesday, September 27, 2016 October Tuesday, October 25, 2016 November Tuesday, November 22, 2016 December No Meeting • All meetings begin at 4:30 p.m. in the Lake Marion Conference Room at City Hall unless otherwise noted on the meeting schedule. * All meetings are held on the fourth Tuesday of the month unless otherwise noted. Community & People • Government Bus rapid transit expansion plans for Lakeville Published January 14, 2016 at 8:17 am By Laura Adelmann City leaders cite housing density, cost concerns Over the next several decades, Metro Transit is planning a phased $92.6 million expansion of Cedar Avenue bus rapid transit service to Lakeville. Bus rapid transit vehicles that travel along Cedar Avenue's Red Line are designed to mimic light rail cars, featuring low floors, ergonomic seats and wide doors. (Metro Transit photo) Current Red Line development from Mall of America to Apple Valley has cost $110 million, according to the December 2015 updated Cedar Avenue Transitway Implementation plan. The plan details a five -phase approach to build new and upgraded stations, purchase additional and replacement BRT vehicles and construct multiple bicycle and pedestrian improvements along the 16 -mile corridor. Red Line station -to -station service is planned to eventually extend from Mall of America to County Road 70 in Lakeville's Air Lake Industrial Park. An existing park -and -pool lot at County Road 70 is planned for conversion into a park - and -ride facility with a shelter and include a 500 -square -foot break room and restroom facility for bus drivers and a bus turnaround. Expanding stations and services is expected to increase ridership from the reported current average of 815 station -to -station riders per weekday to 4,700 by 2040, according to the plan. Peak morning and afternoon Red Line express bus routes average daily ridership of 4,600 weekday boardings are expected to be at 10,100 by 2040. Capital costs for the Red Line developments are planned to be funded primarily with federal and state funds, but local tax dollars are also expected to contribute to construction, operations and maintenance costs. Lakeville has contributed $410,898 toward the Red Line, Apple Valley has paid $1.4 million and about $6 million has come from Dakota County and the County Transit Improvement Board, which is funded through the metropolitan counties' quarter -cent sales tax and $20 motor vehicle excise tax. Although the Red Line Implementation Plan update was unanimously approved by the Lakeville City Council in November, several members expressed concerns about portions of it during a July 2015 work session. Council Member Colleen LaBeau called the transit line costs "pretty staggering" In a recent interview, LaBeau said she is not a big proponent of transit unless rider fees pay for itself. "I don't want to be naive to the fact that we need to get workers to the (Air Lake) Industrial Park because we have a lot of jobs that will be coming," LaBeau said. "But at the same time, it has to make economic sense and not have (taxes) paying the fee for it. I'm not a proponent of any transit system that doesn't pay for itself." She suggested some of the industries that need workers may help pay for the transit. "As a Lakeville taxpayer, I would have to probably decline to support it because I think we over -subsidize what we have now," LaBeau said. At the workshop, Council Member Bart Davis also cited numerous concerns about the plan's recommendation for transit -oriented high-density housing in Lakeville. The plan calls it "critical" that cities along the transitway increase housing density to better support its development and grow ridership. "Future development must also be planned to focus on the station area and not become `transit -adjacent' development," the plan states. One of the areas where transit planners hope to someday locate a station, the area of 174th Street and Glacier Way, has housing densities at three units per acre. The implementation plan recommends housing densities between 25 and 30 units per acre to support transit. Lakeville's new Avonlea housing development is being constructed on 469 acres on both sides of the Cedar Avenue Red Line route. Overall housing density there is 2.3 units per acre, according City Planning Director Daryl Morey. He said densities on the east side of Cedar Avenue, near the transit station, will be higher than the western portion of the development, but did not have exact figures. Davis said he is an advocate for development that is driven by free-market principles, not mandated by zoning that demands transit -oriented development. In an interview, Davis said he voted for the updated Red Line Implementation Plan because he agrees with most other parts of it. "I'm for transportation options for the residents," Davis said. "But I also want the market to decide what they think is appropriate, so let the consumer make that decision" Davis called transit -oriented development, "a great concept in theory," but said he will not support mandating that kind of development in Lakeville. Lakeville's opposition to development as mandated by the Metropolitan Council was also apparent during its first meeting of 2016. Most City Council members opposed using the term "affordable housing" in its 2016 legislative priorities document that records the city's position on a variety of legislative issues. Council Member Doug Anderson proposed that wording about housing be changed to align with Envision Lakeville, the city's long-range planning document. Anderson said he wanted to respect the work of the committee and opposed using the words "affordable life -cycle housing" Council Member Kerrin Swecker agreed, noting those involved in Envision Lakeville planning process struggled with the affordable housing term and instead opted for attainable housing. "Affordable was a little too generic for us," Swecker said. "Because it was a Met Council direction as to what affordable was:' Mayor Matt Little said he did not understand why the council was "so afraid of a word," noting that the city set up its tax incentives for businesses that attract jobs that pay at least $14 per hour and those workers need housing. "It makes no sense to pursue that if we're not also going to provide a place for people to live while they work here," Little said. Davis said during the Envision Lakeville process, concern about "affordable life -cycle" stemmed from how the Met Council was defining it. "It boiled down to ... did we agree with the mandate that they will dictate the type of housing we will have," Davis said. "I think we've been very clear in this, particularly when it comes to transit -oriented development and those types of things, we will let the market decide," Davis said. Little said he also opposes Met Council mandates, but described the debate as "very silly" Anderson's motion to avoid using affordable housing in its documents passed unanimously. Little said while he opposed the wording change, he voted yes because he agreed with the legislative priorities. Future plans Improvements planned for the Red Line through 2020 include a $25 million upgrade to the Mall of America station ($6.7 of which is for the Red Line), $13.2 million for the Cedar Grove station in Eagan and $8.1 million expansion of the Apple Valley Transit Station. After 2020, planners expect to spend $32 million for the Palomino online station and park- and-ride, $4.1 million to replace seven Red Line vehicles and $2.6 million for the Cliff Road online station. Future phase developments include technology upgrades, expansion of the Northern Apple Valley or Eagan park-and-ride and construction of the Lakeville Cedar Station for about $15 million. Stage five in the Metro Transit plans for the extension of the Red Line to County Road 70 and propose the purchase of two BRT vehicles to provide the expanded service. The plan calls for conversion of the park -and -pool lot to a park-and-ride for a total of about $8 million, according to the updated plan. Potential future projects that were identified but not included in a particular phase include a pedestrian bridge at 147th Street Station, a MnPASS lane on Cedar Avenue and development of stations at 161st Street, Glacier Way and 195th Street. Filed Under: Apple Valley, Cedar Avenue bus rapid transit, Lakeville, red line Advertising information I Contact Us I Subscribe Copyright 02016 ECM Publishers, Inc. • All Rights Reserved BUSINESS Homebuilding increased in the Twin Cities last year, but mostly for apartments Twin Cities residential construction rose in 2015, fueled largely by rental demand By Jim Buchta(http://www.startribune.com/jlm-budda/10644536/) Star Tribune JANUARY 5, 2016 — 8:20PM Twin Cities homebuilders gained ground in 2015, chiefly driven by demand for new apartments, according to a year-end report from the Builders Association of the Twin Cities. Throughout the 13 -county metro area, 4,899 permits were issued to build 10,208 units, up from 10,093 in 2014. Of those units, more than half were apartments; 4,679 were single-family homes, up just five units from 2014. "We had hoped to see a much stronger year in 2015," said Chris Contreras, the Builders Association of the Twin Cities' 2015 president. Although some metro -area builders posted healthy gains over the previous year, sales of new single-family houses have yet to regain the kind of momentum that other segments of the industry have experienced over the past several years. Instead, apartments have led the construction recovery, reflecting a deep and long-term shift in the way people live in the Twin Cities. As it has for the past several years, Minneapolis was the most active city in the region for new housing. The city accounted for 1,470 of the new units. Edina was No. 2 with 604. The vast majority of the new housing built in both cities was upscale apartments. Last year, U.S. homeownership fell to a 48 -year low despite an increase in the number of people in need of housing. Instead of buying, many are renting, putting significant pressure on the rental market in the Twin Cities, where until recently there had been a nearly two -decade lull in apartment construction. Since January 2015, 5,750 apartments have become available in the metro area, but the average vacancy rate fell slightly to 2.3 percent by the end of October, according to a quarterly report from Marquette Advisors. Meanwhile, new home sales haven't met expectations. Builders blame the situation on a variety of issues. Contreras said the regulatory climate in Minnesota, for example, has increased the cost of new houses, making it difficult for builders to compete with less expensive existing homes. (http://stmedia.startribune.coni/images/0ws_1452046 New energy and building codes were implemented in the state last year, including a The Arcata luxury apartment complex in Golden mandate that required large houses to have built-in fire sprinklers. Builders said the cost Valley, with amenities such as this community of compliance would add tens of thousands of dollars to the cost of an average new kitchen, is one of the recent additions in the Twi... house, and they successfully appealed the rule to the Court of Appeals, which invalidated it. "We are hopeful that more families will be able to afford their dream home in 2016," Contreras said. Todd Stutz, president of Twin Cities -based Robert Thomas Homes, said that higher construction costs, including labor and materials, has made it particularly difficult for builders to compete. Still, the company was able to increase sales in 2015. The company built 124 houses last year, 18 more than the previous year. "We were satisfied with 2015," Stutz said. "We considered it a relatively stable, uneventful year." Stutz and other builders said that a late -season increase in sales suggests an early and strong spring market in 2016. During December alone, 386 permits were issued to build 1,041 units. That was an 8.7 percent increase in permits and 5.5 percent increase in planned units from the four comparable weeks of 2014. Graham Epperson, division president for Pulte Homes, a large national builder, said that though Pulte's Twin Cities sales were up 35.5 percent over the previous year, the company expected more. He also noted a late -year uptick. "We had a very good December and are feeling some good momentum in early January," Epperson said. One of the challenges in 2016 will be to attract a broader range of buyers, including first - timers and empty nesters looking for less space. So the company is rolling out more affordable side-by-side houses at The Enclave, a new development in New Brighton. Those three-story townhouses will have at least 1,900 square feet and a three -car garage and will be priced in the $300,OOOs. Epperson said Pulte's Minnesota business was one of the company's fastest-growing divisions last year. 'We think the Midwest has a tremendous opportunity to grow much faster than it is today," he said. `But a lot of people are choosing to rent." jim.buchta@startribune.com 612-673-7376 9htXAvV*rk9tV S http://nyti.ms/22vfNag BUSINESS DAY In the Twin Cities, Local Leaders Wield Influence Behind the Scenes By NELSON D. SCB WARTZ DEC. 28, 2015 MINNEAPOLIS — A nondescript conference room on the 38th floor of Minneapolis's tallest skyscraper bears little resemblance to the brick clubhouse a few blocks away where members of the local elite have gathered for more than a century. But swap out the Oriental rugs and dark wood for a granite table and Aeron-style chairs, and it serves much the same function as the Minneapolis Club once did. Every Friday morning, 14 men and women who oversee some of the biggest companies, philanthropies and other institutions in Minneapolis, St. Paul and the surrounding area gather here over breakfast to quietly shape the region's economic agenda. They form the so-called Working Team of the Itasca Project, a private civic initiative by 6o or so local leaders to further growth and development in the Twin Cities. Even more challenging, they also take on thorny issues that executives elsewhere tend to avoid, like economic disparities and racial discrimination. Think of it as The Establishment 2.0: more diverse than the nearly all- white and male establishment of old, to be sure, but every bit as powerful, and just as invisible when need be. "Itasca operates behind the scenes," said Tim Welsh, a senior partner at the consulting firm McKinsey & Company, which hosts the weekly breakfasts at its offices in the IDS Center here. "We all know each other but we are clearly not recognized as the people of Itasca." Itasca's impact is very real, however. And its consensus -oriented approach offers an alternative path at a time when politics nationally — and in many state capitols — seems hopelessly divided along partisan lines. While Itasca would just as soon stay out of the limelight, the levers of power in the Twin Cities are within easy reach. The guest list for the weekly breakfasts downtown includes the mayors of Minneapolis and St. Paul, as well as local legislators, school superintendents and university officials. So when a proposal to raise the gasoline tax in 2oo8 to help rebuild roads and transit systems was vetoed by the Republican governor at the time, Tim Pawlenty, phone calls from Itasca's business leaders helped persuade enough Republican legislators to cross the aisle and override the veto. More recently, pressure from Itasca helped secure increased funding for the state's college and university system. Itasca also spearheaded the creation of a new regional agency to attract companies looking to move or expand, as well as an effort to encourage procurement chiefs at local giants like Target and Xcel Energy to buy more goods and services locally. Itasca's work is among the reasons that the Twin Cities region has emerged as an economic powerhouse. At 2.9 percent, the metropolitan area's unemployment rate is well below the national level of 5 percent. At the same time, Minnesota has excelled in creating the kinds of higher - paid, knowledge- and skills -based jobs that provide entree into the middle class today. With that in mind, Itasca has drawn interest from leaders in American cities and abroad who would like to emulate its success. That will not be easy. Part of what makes Itasca work is also what has helped Minnesota prosper: a long history of progressive and engaged business leaders, a largely homogeneous population with a low poverty rate and a consensus -driven Midwestern culture where egos are checked at the door, or at least not displayed too openly. "Sometimes it doesn't serve anybody to take credit," said Jennifer Ford Reedy, president of the Bush Foundation, a major philanthropy here, and a former McKinsey consultant who advised the Itasca group. "The people who need to know what Itasca is doing are the participants. That's it." In fact, Itasca has no building, budget or full-time staff, other than two McKinsey consultants who coordinate research and logistics for Itasca members. Business establishments, of course, are hardly unique to Minnesota. Most big cities — and many smaller towns — have chambers of commerce, not to mention economic development offices and the like. What makes Itasca unique, participants say, is a commitment to hard data and McKinsey -style analysis, as well as a willingness to depart from the script that drives many private sector lobbies. "We're not just asking for lower taxes and less regulation," said David Mortenson, the current chairman of the Itasca Project. "If we're taking on education or income disparity as a group of business leaders, we want to be able to break some eggs." That's different from what happens in most other cities, said Mr. Mortenson, who earlier this year took over M. A. Mortenson, a nationwide construction firm founded by his grandfather. In Seattle, where Mr. Mortenson lived for nine years before moving back to Minneapolis in 2012, "most of the big tech companies viewed the city as a convenient location to house some of its workers," he said. "They didn't engage unless it affected their business." "Tech leaders are very philanthropic," he added, "but they disconnect it from their business." That has never been a problem here: The Pillsbury family and other members of the Minneapolis Chamber of Commerce helped pay for the construction of the railroad to move grain and flour in the 1800s. And the current governor of Minnesota, Mark Dayton, is a scion of the family that founded the Dayton Dry Goods Company, which grew into a retail giant and more recently morphed into Target Corporation. But by the beginning of the 21st century, that paternalistic, locally minded model of capitalism was fading, said James R. Campbell, a local banker who served in top positions at Norwest Banks and Wells Fargo before retiring in 2002. In 2001, Target rebranded the iconic Dayton's store downtown as Marshall Field's, the Chicago chain it had acquired in 199o. (Marshall Field's was later sold to Macy's.) Also in 2001, 3M, a pillar of the old business establishment based in St. Paul, brought in an outsider as chief executive for the first time in its loo -year history: W. James McNerney Jr. of General Electric. "We were concerned that this flyover land was not organized," said Mr. Campbell, who oversaw the creation of Itasca in 2003 with other local business chiefs along with the leaders of major philanthropies. They took the name from Itasca State Park in northern Minnesota, where business leaders had met annually in the 195os and 196os to discuss issues facing the state. Existing groups like the Chamber of Commerce and the Minnesota Business Partnership were focused "on lower taxes and less regulation," he said. "We were not addressing other issues like income disparities," said Mr. Campbell, who served as chairman of Itasca from 2003 to 20o8, and helped initiate the Working Team breakfasts on Friday mornings in conjunction with the McKnight Foundation and Mr. Welsh of McKinsey. "The chamber didn't want to touch that." Nor was the business community focused on areas that were crucial to long-term economic development, like transportation and infrastructure. "What were we going to do about job growth?" Mr. Campbell said he wondered at the time. "What about marketing ourselves?" The question of self -promotion helped inspire the creation of Greater MSP, an economic development agency that has put the region on the radar of corporate site selectors while overcoming Minnesotans' traditional reluctance to brag about themselves. A bigger test of Itasca's reach — and of the willingness of the local establishment to go outside their comfort zone — came in 2oo8, when Governor Pawlenty vetoed a proposed increase in gas and sales taxes to fund $6.6 billion in transportation improvements. A rush-hour bridge collapse over the Mississippi River in downtown Minneapolis the year before had killed 13 people and galvanized worries about aging infrastructure nationwide. But there was fierce opposition to what would be the first gas tax increase in 20 years. At the same time, Governor Pawlenty was eyeing a White House run and had made a no -new -taxes pledge. None of the governor's previous vetoes had been overridden, but Itasca's members helped move the debate beyond the usual left -right dynamic. Mr. Campbell donned a hard hat and a fluorescent vest and stood with union leaders on the capitol steps to rally support. He and other business executives privately made the case to Republican legislators that traffic jams and long commutes were not good for employees or employers. In the end, six Republican legislators defied the governor, and the veto was overridden by a two -vote margin. "I can't overstate the importance of the Itasca Project leadership on the transportation issue," said Chris Coleman, the mayor of St. Paul. "There's no question it changed the trajectory of the debate." While the case for better infrastructure is straightforward, other Itasca initiatives will take much longer to show concrete results. One major focus of the group is income inequality, as well as the high dropout and unemployment rates among minorities. The gap between the refined atmosphere at the McKinsey aerie and the problems in local neighborhoods can be awkward even for people with the best of intentions. In fact, while Itasca leaders talk up the importance of diversity, minorities are conspicuously absent from the Working Team. (They are much better represented within the larger Itasca membership.) Social issues may be less amenable to business -sector solutions than crumbling roads and bridges, but that has not stopped Itasca from pushing for McKinsey -style benchmarks to measure the performance of local public schools. The group is also spearheading a new effort to better equip the state's two- and four-year college systems to produce graduates with the skills that today's employers need. "The research they've done on education and hiring has really influenced my agenda," said Betsy Hodges, the mayor of Minneapolis. "It puts wind in our sails to know that the business community thinks these issues are important." As might be expected from boosters whose job it is to promote economic growth and talk up the Twin Cities' appeal, many Itasca participants express confidence that their project could be replicated elsewhere. Mr. Campbell, though, is less sure. "My answer is maybe," he said. "There's a unique willingness to trust each other here. It's kind of in our blood." A version of this article appears in print on December 29, 2015, on page 131 of the New York edition with the headline: They're in the Room Where It Happens. © 2015 The New York Times Company Lakeville building boomed in 2015 Published December 23, 2015 at 12:01 pm By Laura Adelmann More construction ahead in 2016 The speedy pace of development and activity occurring in Lakeville 2015 is set to carry forward in the new year. A continued building boom promises more housing units in Lakeville, while business development in the city includes construction of the 94,000 -square -foot FedEx Freight facility and Interstate Power Systems' 82,000 -square -foot truck maintenance facility, both located off County Road 70. The city's business roster will continue to include MOM Brands, the Lakeville -headquartered cereal manufacturer purchased by Post Consumer Brands for $1.15 billion in January 2015. All 250 jobs will be retained in Lakeville in 2016 after the company struck a deal with the city and the state of Minnesota that offered combined incentives of about $1.1 million for keeping the company in Lakeville. The city agreed to pay the company $375,000 from its liquor fund after the jobs have been in place one year. Community and Economic Development Director Dave Olson told the newspaper that having the state's backing proves it recognizes "the importance of keeping MOM Brands in Minnesota as well as the city's priority of trying to keep MOM Brands offices — soon to be Post Consumer Brand's offices — here." Numerous additional businesses are expanding or building in Lakeville, including development of the city's first 90,000 -square -foot Hy -Vee grocery store, underway at County Road 46 and Pilot Knob Road. Lakeville city leaders are promising a continued focus on redevelopment of the city's historic downtown in 2016 with streetscape discussions next year and improvements projected in 2017. Tangible change to the city's downtown started in 2015 with the opening of Heavy Metal Grill restaurant, a project that owner Marty Richie remained determined to complete, even after his food truck exploded in his driveway March 6, damaging homes and catapulting debris throughout his neighborhood. "I lost a truck, I lost a job, I lost a business, I lost a house ... everything is gone in the blink of an eye," Richie told the newspaper in April. "It's devastating." Despite challenges caused by the blast, Richie opened Heavy Metal Grill as planned and said business started strong. Angry Inch Brewing, which shares the former Ace Hardware building with Heavy Metal Grill is reportedly making progress toward opening in early 2016, according to Metro Equity Project Manager Quenton Scherer. Change in downtown also includes the significant loss of the Ben Franklin store, a fixture in the historic downtown since 1981. Owner Scott Erickson announced in November he would close the store at year-end. He said running the gift, fabric, craft and custom picture framing store is the only job he has ever known, but his family business can no longer overcome the economic downturn and competition from national discount retailers. Erickson, who started the business with his father Jerry Erickson, a pharmacist and city pioneer who died in 2010, hopes to soon reopen a small custom framing store in another space. The city of Lakeville also saw the end of en era with the retirement of Dennis Feller, Lakeville's first and only finance director. Feller retired in February after 38 years with the city. His contributions to the city were recognized at a reception. "Everything you do is with integrity, character, morality, and sometimes a little entertainment," City Council Member Kerrin Swecker said at his last council meeting on Feb. 17. "I appreciate that you've been such a great leader and a great inspiration." Mayor Matt Little credited Feller for managing the city budget during good times and bad, noting the outstanding professional reputation he has earned over the years. "You've taken this city from a very, very small town and you've done it at a high level," Little said. "You've won awards, you've won accolades, and literally, everyone I've talked to in Minnesota speaks your praises." His position was filled in April by Jerilyn Erickson, who served as finance director with Prior Lake since 2008. Erickson also worked for seven years as an accounting manager for the city of Burnsville and was an accounting supervisor for the city of Northfield from 1999-2001, according to her LinkedIn profile. A.food truck blast in March was so powerful that debris was propelled into neighboring homes, shattering windows, cracking walls and chimneys, and bending doorframes. Window openings of several homes were covered with boards and huge parts of the truck littered the immediate neighborhood. (Photo by Laura Adelmann) Little said Erickson's experience as finance director, leadership and communication skills made her stand out as the right person for the job. Building New housing starts were strong in 2015 and city officials are expecting the construction to continue in 2016. According to Lakeville, the city issued 324 new single-family home permits and 45 townhome permits through November, compared to 282 single-family permits issued and 24 townhome permits issued during the same period in 2014. Lakeville reported in its December Business Bullets newsletter that the Builders Association of the Twin Cities reported Lakeville has more residential permits of any city for the month of November and year- to-date. The newsletter said next closest year-to-date totals were in the city of Blaine with 277. As business and housing starts grow, keeping traffic moving is a continued focus of city and county officials. After years of planning and two construction seasons of road and utility work, Dakota County in September opened Lakeville's first multi -lane roundabout at county roads 50 and 60. Drivers immediately experienced a learning curve in navigating it as exemplified in the 28 crashes reported at the roundabout the month it opened. Accidents at the roundabout decreased as more drivers learned one of the key aspects to successfully using the roundabout involves slowing down and yielding to other drivers. Roundabout project costs came into focus in July, when the bill grew to $11.35 million, $1.89 million over -budget, adding $1.15 million more in additional costs to Lakeville. Concern about Dakota County's cost -share policy that assess cities for 45 percent of the work for county roads in their city and 100 percent of costs that improve city roads also came up at Lakeville's recent Truth -in -Taxation meeting. Lakeville resident Bob Egan, a former Dakota County construction and maintenance engineer, cited concerns about the city's debt level, noting that much of it is due to county road construction costs. Dakota County announced it will retire its last long-term general obligation bond in 2016 and be completely debt -free. Council Member Doug Anderson said at that meeting he shares concerns about the debt and although city officials have raised the issue with the county in the past he continues "to wonder if there's additional work we can do there." In an email to the newspaper, Anderson said he intends to continue to advocate for the county's support for economic development, "whether it be road or other incentives." Getting around will continue to be a challenge during construction season in 2016 as plans to widen Dodd Boulevard (County Road 9) from 185th Street to 194th Street take place. The improvements, long anticipated but delayed in the economic and construction slow -down, were moved two years ahead of schedule after the 2013 death of Lakeville North High School junior Alyssa Ettl occurred on the road. Ettl was on her way to school on the slush -covered, narrow, curving two-lane road when she slid into oncoming traffic. City and county officials prioritized upgrades to occur in 2016, which will allow the road to serve as a detour for traffic in 2017 as part of County Road 50 (Kenwood Trail) is widened to four lanes. Noteworthy Lakeville's annual Pan-O-Prog celebration made international news in July after this newspaper reported a controversy over the winner of the Baby Crawl event. Everyone agreed Berkley Bailey, then 10 months old, was first to cross the line in her heat in the Pan-O- Prog baby Crawl-A-Thon, but because she scooted and did not crawl, Bailey was disqualified from the race and not allowed to win a trophy. Berkley's mom, Samantha Moore, said Berkley has always crawled by pulling herself on one side and dragging her other leg behind her, and her doctor told them it was a crawl. Dennis Feller, the city's first finance director, retired after 38 years of service. Pan-O-Prog President Diana Neameyer said the rules require all babies crawl on their hands and knees or army crawl so all would have "a level playing field." Other news outlets picked up on the story and numerous people commented on the controversy on social media. Pan-O-Prog organizers have not announced any changes to the 2016 crawling contest as they prepare for the community celebration's 50th anniversary this summer. Missing girls The search for Samantha and Gianna Rucki, the sisters who ran away from their Lakeville home on April 19, 2013 during a custody dispute, ended in November after more than two and a half years. Dakota County prosecutors allege the girls, then 13 and 14, were picked up by their mother, Sandra Grazzini-Rucki, and within days dropped off at the White Horse Ranch in Herman, Minn., where they were located by law enforcement. Grazzini-Rucki is charged with felony deprivation of parental rights for allegedly concealing the girls from officials after a Dakota County district court judge granted full custody of all five of the family's children to their father, David Rucki. Three people connected to the ranch were also charged in the case on Dec. 11. Deirdre Elise Evavold, 51, of St. Cloud; Douglas Craig Dahlen, 53; and Gina Schmit Dahlen, 47, both of Herman, were charged with two counts of deprivation of custodial and parental rights (involving the concealment of a minor). David Rucki and the children are undergoing counseling to assist in the reunification efforts. Solutions sought Suicide prevention came to the forefront in Lakeville when Mayor Matt Little announced in January he was promoting a community initiative to address suicides in Lakeville. In his first speech after taking oath of office in 2015, Little noted the "drastic increase" in the number of suicide threats, attempts and suicides in the city. "I can't find an explanation for it, and I think there are few answers, but there's a strong temptation to ignore it, not to talk about it, or convince ourselves that nothing we can do will help," he said. "But I don't think that's what our community is about. I don't think that's what we believe, so we must not ignore it. We must talk about it." In June, the Lakeville City Council and District 194 Board met with police, fire and other local officials and to address suicide and mental health issues. Since the meeting, the city has established a community response to mental-health related situations that includes a network of professionals working with first responders to provide help and resources to families and individuals in such crisis situations. City budget Lakeville City Council members passed a 3.85 percent property tax levy increase for 2016 on a 4-1 vote in December. Vehicles line up on Ipava Avenue at the 175th Street stop light. The area has seen an increase in traffic since the Mav 4 closing of the county roads 50 and 60 intersection prior to the construction of a roundabout at the intersection in 2015. (Photo by Laura Adelmann) Little cast the dissenting vote after his proposed amendment to increase the levy by $250,000 to pre -fund street reconstruction to avoid adding to the city's long-term debt died for lack of a second. While Little cited concerns about using one-time money to fund long-term expenses, other City Council members cited concerns about increasing taxes for cash-strapped residents in a sluggish economy. The city move forward in 2015 its plans to replace the 23 -year-old Land of Amazement play structure at Steve Michaud Park. Generations of Lakeville residents, many who participated in the community effort to put it together when it was originally built, carry a significant attachment to the playground. A fundraising campaign goal of $221,627 was set by the Lakeville City council in October for the project estimated to cost $356,627. Donors have an option to purchase $41,344 worth of freestanding playground equipment to surround the main structure, including climbers, slides and swings. Donations are being accepted at City Hall, its municipal liquor stores and online at ci.lakeville,mn.us. Frandsen Financial agrees to buy Provincial Bank The deal awaits federal and state approval. By Neal St. Anthony Star Tribune DECEMBER 10, 2015 — 9:32PM Frandsen Financial Corp. said it reached an agreement to buy Provincial Bank, pending approval of the Federal Reserve Bank and the Minnesota Department of Commerce. The transaction is expected to close in first quarter 2016. Terms were not disclosed. CEO Richard Hoban said Frandsen is buying the smaller community bank with three offices in Lakeville, Apple Valley and Hastings to enter a high-growth area in the southern end of the Twin Cities metropolitan area and that the companies have a similar "community -first" approach. Provincial Bank, with $8o million -plus in assets, was founded in 1997 by CEO Mike Watters and Executive Vice President Patrick Arling. They and Provincial officer Michael Lebens will continue to oversee the three offices after the acquisition. Frandsen Financial, founded in 1982 by Dennis Frandsen and based in Arden Hills, owns 30 full-service bank offices in Minnesota, North Dakota, and Wisconsin, totaling $1.6 billion in loans and other assets. Dennis Frandsen, 81, grew up on a farm in western Wisconsin and became an entrepreneur and business owner over the years in timber, manufacturing and financial interests. He also was a one-time minority owner of the Minnesota Timberwolves. SOUTH METRO Abdallah Candies expansion in Apple Valley to receive $170,000 in state aid DECEMBER 3. 2015 - 8:14PM Abdallah Candies is getting $170,000 from the state of Minnesota to help finance its $12 million expansion in Apple Valley. The aid comes in a grant from the state's Job Creation Fund, the Department of Employment and Economic Development said Thursday. The department said the expansion is expected to create 17 jobs. Abdallah owner Steve Hegedus said he knew he wasn't going to get the maximum $1 million that businesses can receive through the fund, but $170,000 was much less than he had hoped. "We appreciate any help we can get, but on the other hand we have some huge capital expenses to deal with," he said. He's not yet certain how that less -than -expected amount will affect the expansion, but said they will "backwards -engineer" the project to work with the funding. The plans for the expansion, at Johnny Cake Ridge Road and W. 147th Street, were revealed this year when the city of Apple Valley agreed to subsidize the project with revenue from a tax -increment financing district. The state announcement Thursday said that aid will amount to $736,000 in site development support. Abdallah also pians to remain at its longtime home in Burnsville, although some jobs are expected to shift to Apple Valley. The first phase of the project will be a 70,000 -square -foot candy manufacturing facility. Another 50,000 to 70,000 square feet could be added later. JESSIE VAN BERKEL, CASEY COMMON (http://stmedia.startdbune.com/images/1449158582 — 10015041 + DAVID DOLES. STAR TRIBUNE FILE Candy maker Kim Heng sprinkles sea salt on top of dark chocolate covered cream caramel at Abdallah Candies in Burnsville. Howden, Richard From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday, January 21, 2016 9:46 AM To: Howden, Richard Subject: State Gains 9,100 Jobs in December DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT For Immediate Release Contact: Madeline Koch, 651-259-7236 January 21, 2016 madeline.koch0)state.mn.us Steve Hine, 651-259-7396 steve.hineCabstate.mn.us State Gains 9,100 Jobs in December —Unemployment rate at 3.5 percent— ST. PAUL — Minnesota employers added 9,100 jobs in December, according to seasonally adjusted figures released today by the Minnesota Department of Employment and Economic Development (DEED). Those figures, combined with November figures that were revised upward by 2,000 jobs, brought job gains for the calendar year in Minnesota to 42,485. Jobs grew 1.5 percent in the state in 2015, compared with a U.S. growth rate of 1.9 percent for the yea r. The state unemployment rate fell to a seasonally adjusted 3.5 percent in December from a revised rate of 3.6 percent in November. The U.S. unemployment rate in December was 5 percent. "The state labor market finished the year with a strong surge, adding 18,300 jobs in the final two months," said DEED Commissioner Katie Clark Sieben. "Nearly all signs point to continued growth in Minnesota in 2016." Eight of the state's 11 major industrial sectors added jobs last month, led by government with 4,300 new jobs. Other gains were posted by leisure and hospitality (up 2,800), education and health services (up 2,100), financial activities (up 2,000), 1 manufacturing (up 1,600), construction (up 1,300), other services (up 500) and information (up 200). Sectors that lost jobs were professional and business services (down 3,200), trade, transportation and utilities (down 2,000), and logging and mining (down 500). Over the past year, the following sectors gained jobs: education and health services (up 12,680), leisure and hospitality (up 11,348), professional and business services (up 10,468), financial activities (up 4,390), government (up 3,171), construction (up 2,490), trade, transportation and utilities (up 887) and manufacturing (up 64). Three sectors lost jobs in 2015: logging and mining (down 1,380), information (down 1,103) and other services (down 530). In the Metropolitan Statistical Areas, the following regions gained jobs in the past 12 months: Minneapolis -St. Paul MSA (up 1.8 percent), Duluth -Superior MSA (up 0.5 percent) and Mankato MSA (up 0.1 percent). The Rochester MSA (down 0.3 percent) and St. Cloud MSA (down 0.1 percent) lost jobs. DEED has added a section to its website that examines the unemployment rate by demographics (race, age and gender) and looks at alternative measures of unemployment. Go here for details. 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 the DEED website (http://mn.gov/deed) or go to our Twitter account (http://twitter.com/mndeed). -30- Seasonally adjusted Unemployment December 2015 November 2015 Rate Minnesota 3.5 3.6 U.S. 5.0 5.0 Employment November 2015 October 2015 Minnesota 2 Not seasonally adjusted December 2015 December 2014 Nov. `14- Nov. `15 Nov. 114- Nov. Level Change 115 % Change 42,485 1.5 Over The Year Employment Growth By Industry Sector (NSA) FChange OTY Job OTY Growth Rate (%) U.S. OTY Growth Rate (%) Total Non -Farm Employment 42,485 1.5 1.9 Logging and Mining -1,380 -19.9 -14.4 Construction 2,490 2.5 4.4 Manufacturing 64 0.0 0.3 Trade, Trans. and Utilities 887 0.2 1.7 Information -1,103 -2.1 1.9 Financial Activities 4,390 2.5 1.8 Prof. and Bus. Services 10,468 2.9 3.1 Ed. and Health Services 12,680 2.5 3.0 Leisure and Hospitality 11,348 4.6 2.9 Other Services -530 -0.5 1.3 Government 3,171 0.7 0.5 Metropolitan Statistical Area OTY Employment Change 0, NSA) OTY Employment Change M, NSA) Minneapolis -St. Paul MN -WI MSA 34,256 1.8 Duluth -Superior MN -WI MSA 687 0.5 Rochester MSA -318 -0.3 St. Cloud MSA -146 -0.1 Mankato MSA 76 0.1 -30-