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HomeMy WebLinkAbout05-24-16n AGENDA Economic Development Commission May 24, 2016 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of March 22,2016 minutes 3. Review of State of Minnesota Investment Fund Application for Hearthside Foods Solutions 4. Review of the 2014-2016 Strategic Plan for Economic Development 2016 Work Program and the process and schedule for the completion of the 2017-2019 Strategic Plan 5. Directors Report 6. Adjourn Attachments: • April Building Permit Report • April 2016 Building Activity • 2015 Business Expansion Projects, DEED • Edina's building boom offers the latest sign of a suburban shift, Star Tribune, 5-19-16 • In Twin Cities, as demand rises, so do entry-level homes, Star Tribune, 5-2-16 • Report: Minnesota manufacturing continues to struggle, Star Tribune, 5-2-16 • Globe University/Minnesota School of Business to close 4 Twin Cities locations, Star Tribune, 5-16-16 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES March 22, 2016 1. Vice Chair Longie called the meeting to order at 4:30 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Longie, Collman, Scherer, Vlasak, Emond, Gillen ex -officio members: City Administrator Miller, Chamber President Roche. Members Absent: Comms. Starfield, Matasosky, Rajavouri, Smith ex -officio members:, Mayor Little Others Present: David Olson, Community & Economic Development Director; Rick Howden, Economic Development Specialist; Mark Lofthus, Dakota Electric Association; Jerry Pittman, Dakota Electric Association; Tom Lambrecht, Great River Energy 2. Approval of February 23, 2016 meeting minutes Comms. Collman/Gillen moved to approve the minutes of the February 23, 2016 meeting as presented. Motion carried unanimously. 3. Presentation on Data Center Site Development Mr. Olson introduce Mark Lofthus from Dakota Electric Association and Tom Lambrecht from Great River Energy. Mr. Lofthus and Mr. Lambrecht provided information on a site certification program that Dakota Electric Association has implemented in order to support the City's effort to market and attract data centers. 4. Review of the status of the 2014-2016 Strategic Plan for Economic Development Mr. Olson reviewed the progress made on the Strategic Plan for Economic Development 2015 Work Plan. Staff plan to bring forward a draft work plan for 2016 at the EDC's April 2016 meeting for review and approval. 5. Director's Report Mr. Olson reviewed the Director's Report including the latest building permit report. The Eureka Township Board has decided to explore options in which the Township might be able to provide sewer and water service to Airlake Airport. As a result, the City will not be pursuing further discussions on the possible annexation of the Airport at this time. The City Council considered several zoning ordinance amendments at their meeting on March 21St. Included in these amendments is a change that would reduce the rate of change from 60 seconds to 7 seconds for electronic message board signs, and a change to the sign ordinance for businesses close to the 1-35 corridor that would allow wall signs on building elevations that face the freeway. This change would allow the Candlewood Suites hotel currently under construction to have wall signage facing 1-35 whereas the current ordinance does not. The City Council will begin a discussion of multi -family housing development at their March 28th Work Session. These discussions will include whether the Council wishes to consider requests that have been received from several land owners and developers to allow for multi -family development on commercially zoned properties near the 1-35 and Cedar Avenue corridors. Staff is currently working with a developer that is planning to submit an application for a 49 unit apartment project along Kenwood Trail adjacent to NTB in the Argonne Village Shopping Center near 1-35. 6. Adjourn Meeting adjourned at 6:06 p.m. Respectfully submitted by Rick Howden, Economic Development Specialist i No. 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 Ken Kappelmann, Hearthside Food Solutions John Kerr, Hickey & Associates John Shoffner, DEED Jeffrey Rainey, Greater MSP Date: May 19, 2016 Subject: Hearthside Food Solutions, LLC Minnesota Investment Fund Application Hearthside Food Solutions (formerly Ryt-Way Industries), a contract food packaging company located in the Airlake Industrial Park, is contemplating investment at their Lakeville facilities in order to accommodate a growth opportunity, which would require the purchase and installation of new processing lines. An investment of $13.6M is contemplated to support a new production line at the facility. In 2013, Hearthside merged with Ryt-way Industries, a major contract packaging firm. The merger with Ryt-way brought the total number of manufacturing facilities to 19, spanning eight states and employing over 7,500 full-time employees. Hearthside currently occupies 625,000 square feet on 21 acres over two sites in the Airlake Industrial Park. "Plant 1-2", located at 21750 Cedar Ave., includes manufacturing, warehouse and office space and employs 99 individuals throughout 250,000 square feet of space and is targeted for the potential investment. Representatives from Hearthside have met with representatives from the Minnesota Department of Employment and Economic Development (DEED), Greater MSP and the City of Lakeville to discuss programs to assist in the proposed $13.6 million investment which would retain 99 employees and create 36 newjobs at the facility in Lakeville. Additionally, the new contract, should it be finalized here in Lakeville, would also add 60-85 temporary positions that have the potential to turn into full-time jobs. Hearthside also explained that without assistance to complete this investment, the plant would close which would create a large vacant building and the 99 employees would not be retained. Representatives from DEED have proposed a Minnesota Investment Fund loan of $450,000, with $200,000 being forgiven once job and wage goals have been achieved. The additional $250,000 is proposed to be repaid over 7 years with an interest rate at 3%. Hearthside will be required to retain 99 jobs and create 36 additional jobs within two years. ACTION REQUESTED Staff is seeking a recommendation to the HRA on a DEED Minnesota Investment Fund application on behalf of Hearthside Food Solutions, LLC. The City Council will be considering this request at their May 23 work session. If the Council and the EDC are both supportive of this application, a public hearing will be scheduled for the HRA to formally consider authorizing this application. 13 O O LL Lul 11i"RAFT //�► M Minnesota Investment fund (MIF) �j Program Application Department of Employment and Economic W"Iopment State Funds APPLICATION PROCEDURES The Minnesota Investment Fund (MIF) Program provides loans to businesses that create or retain high -paying, full-time permanent jobs, and invest in machinery or real property acquisition or improvements. The program is available statewide for manufacturing, distribution, warehousing, and other eligible business activities. Applications are accepted on a year-round basis as funds are available. To receive funds, a business must work in conjunction with the local or county government where the business will be located. A MIF application must be completed and submitted to the Department of Employment and Economic Development (DEED). Step-by-step instructions are listed below and applications may be submitted by mail or email to the Loan Officer for the appropriate region of the state. Please consult with your DEED loan officer before completing this application. COMPLETING THE APPLICATION In consultation with DEED, the local government will make a preliminary determination about whether a business meets the minimum program requirements. Use the MIF Eligibility Checklist on the program website for guidance. If a business is potentially eligible, the following steps are completed: 1. The business provides the information to the local government needed to complete the MIF Application. The local government must submit the completed application to DEED. Please utilize application checklist to ensure application is completed correctly. 2. DEED evaluates the application and notifies the local government and business of approval or denial. If approved, DEED will determine a maximum funding amount and job creation requirements. 3. Jobs created and/or capital investment expenditures maybe counted after the business is formally notified by DEED that an award has been made. If hiring needs to begin sooner, please discuss the business needs with your DEED Loan Officer. 4. DEED will draft a Contract specifying the details of the award and job creation requirements. The local government and the DEED commissioner sign the Contract. S. After the Contract is fully executed, the local government will enter into a Loan Agreement with the business. MIF funds will be paid on a reimbursement basis after required documentation verifying expenditures is submitted. 6. The local government will submit required annual progress reports, payment request documentation, and other information requested by DEED. 06/24/15 MINNESOTA INVESTMENT FUND (MIF) PROGRAM APPLICATION SECTION 1- LOCAL GOVERNMENT APPLICANT INFORMATION Local Government Applicant: Local Government Contact Name and Title: City of Lakeville HRA David Olson, Community & Economic Develop Email: Telephone: dolson@lakevillemn.gov 952-985-4421 Address: City/State/Zip: 20195 Holyoke Ave Lakeville, MN 55044 PART A — Local Resources & Financing Request Does local government have a Revolving Loan Fund? B Yes ❑ No *A copy of the Local Government's Revolving Loan fund Policies must be submitted with this application If yes: What is the balance of the revolving loan fund? $40,000 What is the local government committing to this project (please provide specifics)? Is the applicant up to date with the filing of Minnesota Business Assistance Forms? 8 Yes ❑ No Is the applicant up to date with the filing of MIF Revolving Loan Fund annual reports? 8 Yes ❑ No ❑ N/A What is the requested MIF loan amount? $450,000 ($200,000 - forgivable) What rate and term is the local government proposing forthe new MIF loan funds? 3% for 7 years What collateral will be pledged for the MIF loan? Lien on equipment and corporate guaranty What will the MIF funds be used for (attach estimates)? Machinery and equipment PART B — Community Needs Include a project narrative which addresses the following areas as appropriate. Describe your community and economic development needs in detail and identify priorities and strategies for resolving these needs based on the following criteria: 1. Economic vulnerability of the community (Examples: need to diversify industrial base, underemployment of labor pool, labor pool needs); 2. Events contributing to a unique situation (Examples: recent loss of large employer, labor pool dependent upon one sector or industry, seasonality of employment, natural disaster ); 3. Out migration due to lack of jobs (provide data showing a recent population decline due to lack of employment); 4. Project will support the economic viability of underserved businesses (e.g. veteran, minority, disabled, or women owned); 5. Tax Base: An increase in the value of the parcel(s) of land that will be directly assisted by the project (Provide a letter from the county/city assessor). 06/24/15 2 PART C —Citizen Participation A public hearing is required to provide citizen notification and involvement prior to submitting the application. Submit a copy of the public hearing minutes, a copy of the public notice and affidavit of publication, and the Local Government Resolution. 2. Samples of the public hearing notice and the Local Government Resolution are attached as Exhibits A & B. PART D — Business Credit Check 1. The following information searches on the business and owners holding 10 percent or more of the business must be acquired and reviewed prior to passing the Local Government Resolution: lien/judgment, criminal record, pending lawsuit, credit status, bankruptcy. Provide a short narrative describing the steps completed for due diligence. 2. Attach a narrative describing the local governments' ability to manage the grant, revolving loan fund, state and local compliance requirements, and the implementation of the project. PART E — Financial Analysis 1. The local government must conduct a financial underwriting analysis of project/business financials for the proposed project. 2. What were the findings of your financial analysis? 3. Please attach a copy of the lead lender's credit presentation with this application. PART F — Project Compliance with State Statutes & Rules All businesses receiving a MIF loan must abide by the following statutes and rules: 1. Minnesota Statutes, Section 181.59. Prohibits discrimination in contracts. 2. Minnesota Statutes, Section 363A.08. Prohibits unfair discrimination practices related to employment or unfair employment practices. 3. Minnesota Statutes Chapter 363 Minnesota Human Rights Act. Requires that all public services be operated in such a manner that does not discriminate against any person in the access to, admission to, full utilization of or benefit from such public service. 4. Minnesota Statutes, Sections 176.181-176.182. Requires recipients and subcontractors to have worker's compensation insurance coverage. 5. Minnesota Statutes, Sections 290.9705. Requires that 8 percent of payments made to out-of-state contractors be withheld once cumulative payments made to the contractor for work done in Minnesota exceed $50,000 in a calendar year, unless a waiver is granted by the Department of Revenue. 6. Minnesota Statutes, Section 116J.871. Requires recipients of $500,000 or more of state loan funds to be used for construction to ensure that prevailing wages are paid to laborers and mechanics at the project construction site. 7. Minnesota Statutes Sections 471.87 and 471.88. Forbids public officials from engaging in activities which are, or have the appearance of being, in conflict of interest. 8. Minnesota Statutes 116J.993-995. Business Subsidy laws apply to this project. 9. Minnesota Statutes, 116J.8731. Minnesota Investment Fund laws apply to this project. 10. Minnesota Investment Fund, Rules Chapter 4300. 11. Minnesota Statutes, Chapter 13. The Minnesota Government Data Practices Act provides guidance on data privacy related to this project. 06/24/15 3 LOCAL GOVERNMENT CERTIFICATION: If an award is provided for the project, the information contained in the application will become a matter of public record with the exception of those items protected under the Minnesota Government Data Practices Act found in Minnesota Statutes, Chapter 13. 1 also certify compliance with the appropriate State Statutes and Rules as stated in the accompanying Local Government Resolution. I have read the above statement and I agree to supply the information requested to the Minnesota Department of Employment and Economic Development, Office of Business Finance with full knowledge of the information provided herein. I certify the information contained herein is true and accurate. Name/Title of Local Government Official: David Olson, Community & Economic Development Director Signature of Local Government Official: Date: 06/24/15 4 SECTION 2 — BUSINESS INFORMATION Business: Business Legal Name: Name of Borrower (if different): Hearthside Food Solutions, LLC Hearthside Food Solutions, LLC Business Mailing Address: Street Address for MIF Project Site: 3250 Lacey Rd., Suite 200 21855 Cedar Ave. Business City/State/Zip: City/State/Zip for MIF Project Site: Downers Grove, IL 60515 Lakeville, MN 55044 Primary Business Contact and Title: Matthew Sagendorf E-mail: Telephone: msagendorf@hearthsidefoods.com 630-967-3644 Website: FEIN: www.hearthsidefoods.com 26-4228653 NAICS Code: Minnesota Tax ID: 311230 PART A — Business Description. Describe the business and its major activities. Please attach a narrative and include the following information: 1. Business overview and company history and ownership 2. Product or industry outlook for the MIF project 3. Markets (local, statewide, national, international) and competitive advantage 4. Attach three years historical financials (profit & loss/balance sheets) and 2 years financial projections, and year to date internally generated financials Indicate type of business & provide verification: ❑ Corporation: Articles of Incorporation, By -Laws, Certificate of Incorporation ❑ Partnership: Partnership Agreement 8 LLC: Articles of Organization, Operating Agreement, Member Control Agreement, Certificate of Organization ❑ Proprietorship or operates under a name otherthan the businesses legal name: Assumed Name Certificate, Affidavit of Publication ❑ Foreign Corporation: Certificate to Do Business in Minnesota and in home state. Proprietorship, partners, officers, directors, holders of outstanding stock of 10 % or more of business ownership must be accounted for, and holders over 20% - personal financial statements must be submitted. Name Title % of Ownership Goldman Sachs 43% Vestar Capital Partners 48% 06/24/15 5 List Officers / Key Employees and include resumes (President, Vice President, etc.): Name Title Years at Company Rich Scalise Chairman CEO & Co -Founder 7 James Wo'ciechowski Interim Chief Financial Officer 1 Bob Scalia Senior VP Strategy & Bus Dev 3 Does the property or the business have any outstanding local, state or federal tax liabilities? ❑ Yes 8 No If yes, describe: Are there current or unsatisfied judgments or injunctions against the business or owners? ❑ Yes 8 No If Yes, describe: Is there current or pending litigation involving the business? ❑ Yes 8 No If yes, attach summary and disposition. Within the past five years, has there been any violation(s), citation(s), or complaint(s) of discrimination filed against the company in a state or federal court or before any state, federal or local government agency? ❑ Yes 8 No If Yes, attach a copy of the violation(s), citation(s), or complaint(s) and the disposition of each. Have there been any current or past bankruptcies on the part of the business, or on the part of any current (or prospective) officer, principal, owner or in any business dealings of current (or prospective) officers, principals, or owners of the applicant entity? ❑ Yes 8 No SECTION 3 - PROJECT OVERVIEW PART A — Project Description. Describe the project for which MIF funds are being requested. Please attach a narrative and include the following information: 1. Provide details for the project for which MIF funds are being requested. Discuss topics such as square footage, lease versus ownership, new construction versus renovation, or leasehold improvements, etc. 2. Is this a new facility/site, expansion and/or acquisition? 3. Will the business purchase/lease/or construct the facility? Who will own the facility? 4. Explain why MIF financing is necessary for this project. 5. Describe how the MIF project will strengthen and/or diversify the local or Minnesota economy. 6. Describe any local government assistance for the MIF project (e.g., city loan, abatement, TIF, etc,). 7. Attach a commitment letter from each financing source, including a letter of commitment for any business equity. PART B — Project Timeframe Task Estimated Completion Date Commitment of all funds 6/30/16 Start of construction 7/31/16 Purchase Equipment 8/31/16 Project Completion 9/30/16 06/24/15 6 PART C — Project Sources & Uses Do you acknowledge that Personal Guaranties are required as a condition of the MIF loan? ❑ Yes Description of equity/other: Company PART D — Detailed job & wage information. Current number of employees company -wide: Over 7,500 FTEs worldwide Current number of permanent, FTE employees in Minnesota: 531 Current number of permanent, FTE employees at proposed MIF project site: 99 *Provide a most recent payroll report to document current employment levels. Social security numbers and other sensitive information should be redacted. Will any jobs be relocated from another Minnesota site to the proposed MIF site? ❑ Yes M No If yes, which location(s) will the employees be relocated from? *For jobs relocated from another Minnesota location, a letter in support of the move from the city where the jobs will be moving from must be attached Number of new FTE jobs to be created within 2 years in Minnesota: 36 *Full-time equivalent (FTE) permanent jobs based upon expected work hours of 2080 annually Will non -mandated benefits be provided? M Yes ❑ No Which non -mandated benefits will be provided? M Health M Dental M Retirement M Life El Profit Sharing/Bonuses 06/24/15 MIF Bank Equity (describe below) Local Government Other (describe below) Total Property Acquisition Site Improvement New Construction Renovation of Existing Bldg. $1,300,000 $1.3 M Purchase of M & E $450,000 $11,850,000 $12.3 M Other Total Project Cost $13,600,000 $13.6 M Term (years) Interest Rate Collateral Lien Position Description of equity/other: Company PART D — Detailed job & wage information. Current number of employees company -wide: Over 7,500 FTEs worldwide Current number of permanent, FTE employees in Minnesota: 531 Current number of permanent, FTE employees at proposed MIF project site: 99 *Provide a most recent payroll report to document current employment levels. Social security numbers and other sensitive information should be redacted. Will any jobs be relocated from another Minnesota site to the proposed MIF site? ❑ Yes M No If yes, which location(s) will the employees be relocated from? *For jobs relocated from another Minnesota location, a letter in support of the move from the city where the jobs will be moving from must be attached Number of new FTE jobs to be created within 2 years in Minnesota: 36 *Full-time equivalent (FTE) permanent jobs based upon expected work hours of 2080 annually Will non -mandated benefits be provided? M Yes ❑ No Which non -mandated benefits will be provided? M Health M Dental M Retirement M Life El Profit Sharing/Bonuses 06/24/15 JOB CREATION FORM — LIST ALL PERMANENT JOBS TO BE CREATED POSITION TITLE List permanent FTE positions only)* P p y) HOURLY RATE WITHOUT BENEFITS HOURLY VALUE OF BENEFITS ** TOTAL HOURLY WAGE INCLUDING BENEFITS *** Line Worker (25) $10.20/hr $5.76/hr $16.93/hr Hopper Filler (3) $12.29/hr $6.04/hr $18.33/hr Line Lead (3) $15.98/hr $6.53/hr $22.52/hr Mechanic (1) $20.43/hr $7.15/hr $27.58/hr Blender (3) $12.29/hr $6.04/hr $18.33/hr Warehouse (1) $15.50/hr $6.48/hr $21.98/hr Total jobs to be Created: 36 Average hourly Wage: $11.40 Average hourly benefits: $5.92 *For the purposes of the Minnesota Investment Fund program, jobs considered must be non -contract, non -seasonal, permanent full-time (or part time that add to 2080) equivalent positions working at least 2080 hours per year. ** Only non -mandated benefits to the employee. Social security tax, unemployment insurance, workers compensation insurance and other benefits mandated by law must be excluded. *** Total compensation including base wage and benefits must be at least 110% of the federal poverty income level for a family of four (verify current wage levels with loan officer at the time of application). PART E - Environmental Are there any environmental risks associated with the site, building, or the business itself? ❑ Yes ® No If yes, please describe: 2. Have state environmental review requirements been met, if applicable? N Yes ❑ No 06/24/15 8 Minnesota Department of Employment and Economic Development (DEED) Minnesota Investment Fund Application PART A — Business Description Hearthside Food Solutions was formed in 2009 by a team of food industry veterans led by Rich Scalise and in conjunction Wind Point Partners, a mid -cap private equity fund based in Chicago. Initially, Hearthside consisted of four manufacturing facilities located in Grand Rapids, Michigan and employed over 2000 employees. In 2010, Hearthside made two acquisitions that doubled the size of the Company and expanded its portfolio of products. In 2013, Hearthside merged with Ryt-way Industries, a major contract packaging firm also owned by Windpoint. The merger with Ryt-way brought the total number of manufacturing facilities to 19, spanning eight states and employing over 7,500 full-time employees. In 2014, in conjunction with the management team, the company was purchased by Vestar Capital Partners and Goldman Sachs. Today, Hearthside has 23 facilities in North America and Europe. Hearthside is the food industry's largest contract manufacturer. Hearthside's extensive core capabilities provide a wide range of options in all of its platform categories. These core capabilities include: Processing, Blending, Decorating and Packaging. Hearthside's asset base enables customer production options in each of these capabilities that bring new value to their customers. Hearthside does not believe that success is based on its size, but rather as a result of it. By focusing on delivering multi- dimensional innovation at all points of the value chain, Hearthside is able help customers shorten time to market, improve product and package quality and drive down landed costs — all while producing a superior consumer experience. Hearthside Foods is contemplating investment at their Lakeville facilities in order to accommodate a growth opportunity, which would require the purchase and installation of new processing lines. An investment of $13.6M is contemplated to support new products at the facility. There is potential for further growth in the marketplace, should this product line become successful, as well. Financial support from the MIF is crucial in order to support the investment. Without the financial support from the MIF, it's likely that Plant 1 of 2 would have to close. Further, 99 employees at this facility would not be retained. Additionally, the current lease would be cancelled creating a large, vacant building on Cedar Ave. Future growth opportunity in Lakeville would be limited with the reduced capacity, as there would now be much less production and warehouse space. However, should the MIF decide to support and invest in this project with Hearthside, Plant 1 would remain open, and all 99 employees would be retained. The project is designed to be phased in creating approximately 18 additional, full-time jobs in 2016 and an additional 18 full-time jobs in 2017. Additionally, the new business, should it be finalized here in Lakeville, would also add 60-85 temporary positions that have the potential to turn into full-time jobs. In summary, this new investment could mean at least 38 new permanent jobs, 75 new temporary jobs, $1M in new salaries in 2016 and $2.5M in new salaries, combined, in 2017. Further, the opportunity for more growth is larger by keeping all the production space used. 4. Attach three years historical financials (profit & loss/balance sheets) and 2 years financial projections, and year to date internally generated financials Minnesota Dept. of Employment and Economic Development (DEED) Minnesota Investment Fund Application SECTION 3 - PROJECT OVERVIEW PART A — Project Description. Describe the project for which MIF funds are being requested. Please attach a narrative and include the following information: Hearthside Foods has been in the City of Lakeville for a number of years, and seeks through this investment, to remain for many more. Currently, Hearthside Foods has operations on 21 acres of property, which was constructed in 1991. Two facilities span this acreage. "Plant 1-2," includes manufacturing, warehouse and office space, throughout 250,000 square feet of space. These facilities are leased and operated by Hearthside Foods, and it's these facilities that we seek to enhance with the support of the Minnesota Investment Fund (MIF) in order to retain approximately 62 direct employees, 37 indirect employees, 6 salaried employees and a number of temporary workers. Hearthside Foods is contemplating investment at their Lakeville facilities in order to accommodate a growth opportunity, which would require the purchase and installation of new processing lines. An investment of $13.6M is contemplated to support new products at the facility. There is potential for further growth in the marketplace, should this product line become successful, as well. Financial support from the MIF is crucial in order to support the investment. Without the financial support from the MIF, it's likely that Plant 1 of 2 would have to close. Further, 99 employees at this facility would not be retained. Additionally, the current lease would be cancelled creating a large, vacant building on Cedar Ave. Future growth opportunity in Lakeville would be limited with the reduced capacity, as there would now be much less production and warehouse space. However, should the MIF decide to support and invest in this project with Hearthside, Plant 1 would remain open, and all 99 employees would be retained. The project is designed to be phased in creating approximately 18 additional, full-time jobs in 2016 and an additional 18 full- time jobs in 2017. Additionally, the new business, should it be finalized here in Lakeville, would also add 60-85 temporary positions that have the potential to turn into full-time jobs. In summary, this new investment could mean at least 36 new permanent jobs, 75 new temporary jobs, $1M in new salaries in 2016 and $2.5M in new salaries, combined, in 2017. Further, the opportunity for more growth is larger by keeping all the production space used. LAKEVILLE, MN - MIF SUPPLEMENTAL APPLICANT INFORMATION COMMUNITY NEEDS NARRATIV Lakeville, Minnesota's unemployment rate is 3.3%, and more than 13.0% of its working age population (ages 20-64) is out of the labor force altogether. While approximately 6.2% of Lakeville residents fall below the poverty threshold, the poverty rate increases to 6.8% for households with children under 18 years old. Lakeville's manufacturing sector is slightly less concentrated than the metro average, with over 3,400 residents employed in manufacturing. Additionally, Lakeville's manufacturing workforce has decreased by over 6% since 2010. Median earnings for Lakeville residents employed in the manufacturing sector were nearly $63,000/year, the highest among all major 2 -digit NAICS code industry groupings for Lakeville residents. This project would support the rebound and growth of this important and high -paying industry sector for residents of Lakeville, while also diversifying the city's economy and making it less vulnerable to economic downturns. Lakeville's current resident base is well-suited to support this project, and many companies in Lakeville employ the types of employees that would support this project. In addition to having a transportation and material moving workforce that is more concentrated than the metro average, Lakeville's food manufacturing sector is nearly five times more concentrated than the national average, and the city's food processing workforce has grown by over 90% since 2010, according to the Bureau of Labor Statistics' Quarterly Census of Employment and Wages tool. EMPLOYMENT BY INDUSTRY, 2014 INDUSTRY Lakeville, Estimate Lakeville, % Greater MSP, % Difference Civilian employed population 16 years and over 31,699 1,808,192 Agriculture, forestry, fishing, hunting, and mining 469 1.5% 0.9% 0.6% Construction 1,319 4.2% 4.8% -0.4% Manufacturing 3,403 10.7% 13.69/c 1.89a Wholesale trade 1,121 3.5% 3.1% 0.4% Retail trade 3,765 11.9% 11.3% 0.6% Transportation, warehousing, and utilities 1,875 5.9% 4.5% 1.4% Information 892 2.8% 2.1% 0.7% Finance, insurance, real estate, and rental & leasing 3,467 10.9% 8.6% Professional, scientific, management, administrative, and waste management services 3,438 10.8% 11.8% -1.0% Educational services, health care, and social assistance 6,439 20.3% 23.2% imi Arts, entertainment, recreation, accommodation and food services 2,609 8.2% 8.3% 0.8% Other services, except public administration 1,675 5.3% 4.5% 0.8% Public administration 1,227 3.9% 3.4% 0.5% EMPLOYMENT BY OCCUPATION, 2014 INDUSTRY Lakeville, Estimate Lakeville, % Greater MSP, % Difference Civilian employed population 16 years and over 31,699 1,808,192 Management, business, science and arts occupations 9,326 29.4% 25.7% Service (social, health and education) occupations 9,451 29.8% 32.5% Sales and office occupations 8,208 25.9% 24.1% 1.89a Natural resources, construction, and maintenance occupations 1,575 5.0% 6.4% AA% Transportation and material moving occupations 1,695 5.3% 5.0% 0.3% Production 1,444 4.6% 6.3% -1.7% Source: U.S. Census Bureau, 2014 American Community Survey 5 -Year Estimates. EDUCATION ATTAINMENT (POPULATION 25 YEARS & OVER) 100% 93.0% 96.45/o 80% 60% 40% 20% 0% Lakeville has a well -education resident - base, with over 96.0% of its working population holding at least a high school diploma, and nearly half of all adult residents having a bachelor's degree or higher 46,3 Production, assembly and line positions 38.9% related to this project will offer family - supporting wages for those with less than a college education. Additionally, mechanic positions associated with the project will provide employment opportunities to Lakeville residents with associate's and trade -related degrees. Percent high school graduate or higher Percent bachelor's degree or higher Minneapolis -St. Paul Metro Source: U.S. Census Bureau, 2014 American Community Survey 5 -Year Estimates. LAKEVILLE'S WORKFORCE Inflow/Outflow job Counts in 2014 Lakeville Of those who currently live in Lakeville, over 25,200 (a substantial 87% of the employed resident base in Lakeville) people work outside of their home city. Lakeville is a net -exporter of its workforce, with more people leaving the city for employment than commuting to it from other communities. Currently, nearly half (48.9%) of Lakeville residents have an average commute time that is longer than the metro average (25.0 minutes). Proximity to more employment opportunities would beneficially reduce travel time for Lakeville residents and lower congestion throughout the region. On a daily basis, 74.0% of Lakeville's primaryjob workforce commutes from other parts of the metro for theirjobs. That is over 10,000 people M 10,087 , Employed in Selection Area, live Outside who work in Lakeville but live and pay property taxes elsewhere. 25,274 - Live in Selection Area, Employed Outside 3,505 - Employed and live in Selection Area Source: U.S. Census Bureau, Center for Economic Studies. CONTRIBUTINGEVENTS • A UNIQUE• r In September 2015, the State of Minnesota was alerted to a major layoff affecting over 450 people Blue Cross and Blue Shield, located in nearby Eagan. Increased hiring at Lakeville companies would offer new job opportunities for this large group of displaced employees in the south metro. Since the beginning of 2015, over 100 people have been laid off from food processing and manufacturing facilities in the Minneapolis -St. Paul metro area. This project would potentially provide employment opportunities to individuals laid off from Gedney Foods and Michael Foods in 2015, some of which may be Lakeville residents. Source: Minnesota Dislocated Worker Program, http://mn.gov/deed/images/DWPReports.pdf. EVENTS CONTRIBUTING • A DEPRESSED ECONOMY Since January 2015, over 4,800 workers in the Minneapolis -Saint Paul metro were impacted by mass layoff events, according to DEED's Dislocated Worker Program. Many of these dislocated workers are coming from life science facilities and manufacturing operations. Company City Notification Industry Affected Date Workers Hutchinson Technology Hutchinson 3/4/2016 Manufacturing 98 Inc. Astora Women's Health Eden Prairie 3/3/2016 Health Care/Social Assistance 172 Lunds & Bylerlys St. Paul 2/17/2016 445110—Supermarkets and Other Grocery 65 Hydralift St. Paul 1/19/2016 333923 — Overhead Traveling Crane, Hoist, and Monorail 85 System Manufacturing Imation Oakdale 10/2/2015 334613 - Magnetic and Optical Recording Media 124 Manufacturing St. Olaf Community Minneapolis 9/23/2015 623110 - Nursing Care Facilities 104 Seagate Shakopee 9/11/2015 334112 - Computer Storage Device Manufacturing 125 North Memorial Robbinsdale 9/1/2015 622110 - General Medical and Surgical Hospitals 95 Sivantos Plymouth 8/17/2015 334510. Electromedical and Electrotherapeutic Apparatus 96 Manufacturing Blue Cross and Blue Shield Eagan 8/11/2015 524114- Direct Health and Medical Insurance Carriers 460 Zimmer Spine (Biomet) Edina 8/7/2015 334510 - Electromedical and Electrotherapeutic Apparatus 65 Manufacturing Univita Health Eden Prairie 8/6/2015 621610 - Home Health Care Services 65 UCare Minneapolis 7/1/2015 524114 - Direct Health and Medical Insurance Carriers 246 Gannett Publishing Maple Grove 6/2/2015 323111 Commercial Gravure Printing unknown Mammoth (Nortek Air Eden Prairie 5/11/2015 423730 - Warm Air Heating and Air -Conditioning Equipment 64 Solutions) and Supplies Merchant Wholesalers Michael Foods Le Le Sueur 5/6/2015 311999 -All Other Miscellaneous Food Manufacturing 29 Sueur Anoka Hennepin Coon Rapids 4/18/2015 813930 Labor Unions and Similar Labor Organizations 150 Education Minnesota Chart Industries New Prague, 3/30/2015 332420 - Metal Tank (Heavy Gauge) Manufacturing 50 Owatonna DJO Global 2015 St. Paul 3/23/2015 423450 - Medical, Dental, and Hospital Equipment and 54 Supplies Merchant Wholesalers Gedney Foods 2015 Chaska 3/16/2015 311421 - Fruit and Vegetable Canning 84 Target 2015 Minneapolis 3/3/2015 452111- Department Stores (except Discount Department 1,721 Stores) National Recoveries, Ham Lake, Coon 2/23/2015 561440 - Collection Agencies 179 Inc. Rapids Smead 2015 Hastings 2/19/2015 322233 - Stationery, Tablet, and Related Product 114 Manufacturing Classic Oakdale 2/17/2015 332721 - Precision Turned Product Manufacturing 36 Manufacturing Minneapolis Public Minneapolis 2/16/2015 611110 - Elementary and Secondary Schools unknown Schools 2015 United Rentals Plymouth 9/2/2015 532412 - Construction, Mining, and Forestry Machinery and 71 Equipment Rental and Leasing Arrow Electric Inc St. Paul 1/28/2015 423690 - Other Electronic Parts and Equipment Merchant 77 2015 Wholesalers Target Canada 2015 Minneapolis 1/15/2015 452111- Department Stores (except Discount Department 550 Stores) Source: Minnesota Dislocated Worker Program, http://mn.gov/deed/images/DWPReports.pdf 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: May 20, 2016 Subject: Proposed 2016 Strategic Plan Work Program and Review of Process for 2017-19 Strategic Plan for Economic Development Update Staff reviewed the attached summary of the progress made on the Strategic Plan for Economic Development 2015 Work Program with the EDC at the March meeting. The Strategic Priorities for 2015 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 It is staff's recommendation that the Work Program that was approved for 2015 be carried over in 2016. (A copy of the 2015 Work Program Update that was provided at the March meeting is attached again.) The majority of the specific actions identified in the 2015 Work Program are either still on-going or were not able to be implemented in 2015. A number of the Key Outcome Indicators for the Plan that were identified are close to being achieved and by the end of this year likely will be achieved. In addition, work on the 2017-19 Economic Development Strategic Plan will begin in September of this year. It is recommended that the City retain Craig Rapp with Craig Rapp LLC to facilitate this process. Mr. Rapp facilitated the Envision Lakeville process in 2013 and subsequently facilitated the process for the development of the current 2014-16 Strategic Plan for Economic Development. Mr. Rapp is currently facilitating a Strategic Planning Process for the Dakota County CDA. He had his first planning session with the CDA Board on May 12th and will be conducting various stakeholder engagement over the summer months and completing the Strategic Planning Process in September and October. Some of the information gathered during the CDA Strategic Planning Process may be useful in the City's economic development strategic planning process. Recommended Action: Continue the discussion on the progress made on 2015 Work Program and recommend continuation of the same work program priorities for 2016. Staff will provide more detailed information on the process and schedule for the preparation of the 2017-19 Strategic Plan over the next several months. 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H •� Sir CCs V �. . �lA Ca �p �� p L1 y Y 0 oI � -�, �, •L � w 3 Sy � � a. w �. � b,o z QJ Lr) cz _� o L r -I w°o' a0i a s1. {� y bAO ^O U*) N C o' '� bio ^cs �''41 , ^O O c z C OEn C j 00 Cs. -acz O Q N O N En 00 O v V U `O yCL N ctO N }' Sl. cin CO CTS 'CS CCL GA 'n 3 Cts O h Cts cz y V O O� �. a� a0) O �; `ti p cu V)O O .0 .., x y h LL •y'cu o o tZ O o o O a o ON —1 Ca cQn"^� L oN °`° M. �N v�N txa�N44. N Q U O C 0 v Q Gi w0 G. CZ a U bz i�J CTS 4 �D c-1 O N O N Memorandum City of Lakeville Community & Economic Development To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Justin Miller, City Administrator Rick Howden, Economic Development Specialist Date: May 20, 2016 Subject: May Director's Report The following is the Director's Report for May, 2016. Building Permit Report The City has issued building permits with a total valuation of $41,151,404 through April. This compares to a total valuation of $56,574,012 for building permits issued through April of 2015. The City issued commercial and industrial permits with a total valuation of $4,631,000 through April compared to a total valuation of $19,893,000 during the same period in 2015. The City has also issued permits for 89 single family homes through April with a total valuation of $27,834,000. This compares to 78 single family home permits through April of 2015 with a total valuation of $25,190,000. The City also issued permits for 18 townhome units through April with a total valuation of $4,268,000. This compares to 11 townhome permits issued through April of 2015 with a total valuation of $2,789,000. Co. Rd. 50 Road Project On May 10th, the Dakota County Board of Commissioners approved the City recommended concept for a backage road concept for the commercial area along Co. Rd. 50 between Ipava Avenue and Dodd Blvd. (See attached article). A copy of the C-1 concept plan for this backage road is attached. This concept will require the total acquisition of the current McDonald Eye Care property, but there will be adjacent land available for the development of a new McDonald Eye Care office. The backage road concept included in the C-1 concept was the preferred design by all of the existing businesses. Approved Zoning Ordinance Amendments Page 2 The City Council approved several zoning ordinance amendments at their meeting on March 21St. Included in these amendments is a change that would reduce the rate of change for messages from 60 seconds to 7 seconds for electronic message board signs, and a change to the sign ordinance for businesses close to the 1-35 corridor that would allow wall signs on building elevations that face the freeway. This change would allow the Candlewood Suites hotel currently under construction to have wall signage facing 1-35 whereas the current ordinance does not. Apartment Development in Lakeville The City has received an application from Ron Clark Construction for a 49 unit apartment project to be developed on a 3.1 acre site adjacent to NTB in the Argonne Village Shopping Center. The proposed project is a 3 -story apartment building with underground parking. The project is scheduled for a public hearing to consider their preliminary plat and conditional use permit by the Planning Commission on June 2nd and would go to the City Council on June 20th. The Developer is seeking an allocation of Federal Housing Tax Credits for the project from the Dakota County CDA. As a result, construction on the project is not anticipated to commence until 2017. Staff is also working with several other apartment developers that are looking at current commercial sites along 1-35 and Cedar Avenue. The City Council directed staff to suggest to developers that the City would review proposed multi -family developments in commercial areas using the Planned Unit Development (PUD) and look at each proposed project on a case-by-case basis. Development Update The City is currently reviewing several commercial and multi -family, and institutional subdivision plat applications. These include a proposed PetSmart store in the Spirit of Brandjten Farm development adjacent to the new HyVee store. ISD #196 is also proposing a new elementary school in the far northeast corner of Spirit of Brandjten Farm near Co. Rd. 46 and Diamond Path. These projects will both go to the Planning Commission in June. A proposed automotive service business is proposed in the Crossroads East Shopping Center at the intersection of Dodd and Cedar Avenue. This would be adjacent to the existing Subway and is scheduled to go to the Planning Commission on June 2n1 The Dakota County CDA has submitted a final plat application for a 62 unit senior apartment project behind the Argonne Village Shopping Center. This will go to the City Council on June 6th Business • Government County Board approves CR 50 design in Lakeville Published May 13, 2016 at 9:07 am By Laura Adelmann McDonald Eyecare to be acquired After almost two years of negotiations and alternatives, a definitive design for widening a segment of County Road 50 in the heart of Lakeville is set for approval. In committee, Dakota County commissioners on May 10 unanimously recommended a road design, estimated to cost $2.1 million, that addresses the future of multiple long- standing Lakeville businesses located on County Road 50 between Ipava Avenue and Dodd Boulevard. To clarify the best road design option, a study was conducted primarily focusing on McDonald Eye Care, White Funeral Home and Lakeville Dental, whose frontages closely abut County Road 50. Lakeville officials working with the county have already negotiated and acquired several neighboring homes, the Kindernook Preschool and Farm Show Magazine and the Emond building; they will be removed to allow for the expansion. Under the recommended design, McDonald Eye Care, which is a business and a home, is proposed by city and county officials to be acquired and relocated to adjacent space created by the acquisitions of the neighboring properties. White Funeral Home and Lakeville Dental are proposed to remain in the same location, with changes to their access and parking lots. A new city street, a backage road, will be built behind the businesses, located between the businesses and a neighborhood on Ideal Way. The new backage road will provide connections to Icenic Trail and County Road 50 and provide access to the remaining businesses. Their front drives to County Road 50 are planned to be closed under the new design. Under the design, the paved trail is also located alongside the new road instead of along County Road 50, where space is tight between the businesses and the road. Dakota County Engineer Brian Sorenson said the plan moves Lakeville Dental's parking lot to the building's rear, possible after the Emond building is removed. He said the county worked closely with business owners to create the design, which the owners preferred to another option that would have put a paved trail along County Road 50, but under both scenarios considered, White Funeral Home owners felt their building orientation would be compromised, according to Sorenson. "If we reorient them, under both scenarios, I think they felt like their situation isn't really situated properly anymore to receive people as they park and enter the building," Sorenson said. He said the project estimate includes compensation for damages related to White Funeral Home, land acquisition, access removal and rear approach, costs to cure parking, new business location identity and new signs for the businesses. Sorenson said the road design challenges by the businesses' close proximity to County Road 50 were compounded by the railroad across from the businesses on County Road 50. "To expand this roadway, we wouldn't be able to move toward the railroad," Sorenson said. "The expansion would have to happen toward the north and the east, which creates an issue potentially with the businesses." In addition, Progressive Rail had for years since the 2008-2009 Recession regularly parked train cars on tracks next to the road, which goes through the heart of downtown Lakeville, but recently removed them all. Sorenson said the recommended design for County Road 50 provides more efficiency and safety to the transportation system than the other option, while also providing a better buffer to the residential properties to the north. He said it also provides more direct access to and from the area in all directions, allows traffic on County Road 50 to find businesses easily and provides more efficient maintenance of the access road. Appraisals are planned to be conducted from May to July with first offers expected to be made to property owners this fall. Phase one construction of the project is proposed to start next summer or fall, which Sorenson said will start with the backage road and the business' parking areas to allow businesses access before the major work in 2018. Multiple Lakeville officials attended the meeting and expressed support for the recommended design option. Lakeville Public Works Director Chris Petree said the city, council members and business owners favor it over the other one and added they started to consider the road work after hearing from residents concerned about traffic flow on the road as plans for the county roads 50 and 60 roundabout project were being presented to the community. "It's a very critical area for us," Petree said. "We have some multigenerational businesses we've been talking about. The county has partnered with us, and we really appreciate the work county staff has done." Filed Under: County Road 50, Lakeville, Lakeville Dental, McDonald Eye Care, White Funeral Home ��-IJTN I I 1 771 - Advertising information I Contact Us I Subscribe I Jobs & Classifieds Copyright ©2016 ECM Publishers, Inc. • All Rights Reserved pro pertyImpacts —Concept C-1 a 14 July 2015' .fl I+ ?•;7 (1) Based on 8,O01hf of commercial/office use. BuildingSetbafJe' s n (2) Assumes acquisition of residential property and purchase agreement with Newhall. •;_ Parkmg5etbuek" c' , r . N Pro erly Boundary, � �; �� � .�;F; k �,� _ � � ,,� _ 'fir �F � �" `��► - iamftn�t Sal :, � •�; tion`" ptc?} ' �> +� ` t �'�pt�9•' i i .q A. 8f rp Y f \3 13 REDEVELOPMENT/ 2.6 acres:t!41,0S sf HITT. .58.8E S- 31,159 sf( _ II iI � � >r � h '` , , `. _ �' �> �_� • � `�� '`'r . IParkrfra {oc,for. t4 :spaces + �—� �•-; - R ' _ s Pan lotfor 1117spaces+urcula ' " } f*r9 Rsf`appn Ifusr►d est zG3 sf pp � �l}W�4 4 .,M "Y= ExrstingBuildil 3 r i a • e -in _cx _ s +" ■ # \ ;� __ �e Area=g6.Ah o g� crea 4i?S a -n VARI frKIN- ODTRAIL S�AHM alBuilding�ano r�beiplR�ff�st andlor�stamtwfder. mg Requrr 6pai ngspi LEGEND II® NewSignagelowdon _r BuidingSetbacF—=7b-0rg&ildirr� Potential Storm water Treatment L— I J parking Setbadf Potential Bmldbn4 Trail Route L _ _1 Property Boundary Potential Building 1 CSAR 50 Kenwood Corridor Study- 2015 Concept C-1 va" V99. ii • t (i tf!! iiia 1B• uaua Siang �it y (D . �.�flitil�+Is� = 13" 1i 1s � �,.4E7yCt" 12' i ` • ►... �. t oilA (D 'a I r -E- i. 1 0 40 --$a -- ---_I , CL IBWVW��FEET h Diisft Area of Land Resulting Existing Potential Erlsting Resulting Required IMPACTS Parcel Roadway Adjustment Parcel Building Erpanslon Parking Parking Parkingfor Area Acquisition Area Area Future EMOND 22.651 sf FULL n/a I n/a 4,048 sf n/a 19 stalls n/a n/a 0.52 acres HARRISON 21,344 sf _5,075 sf +14,890 sf 31,159 sf 4,051 sf 1,450 sf 20 stalls 24 stalls 25 0.49 acres 0.72 acres INHITE 73,181 sf _20,283 sf +16,091 sf 68,989 sf 6,861 sf 1,450 sf 119 stalls 120 stalls undefined 1.68 acres 1.58 acres (+ 8 add.) MCOONALD 58,370 sf _17,267 sf + 10,160 sf 51,263 sf 3,329 sf 8,000 sf 36 stalls 68 stalls 360 134 acres 1.18 acres (new bldg.) REDEtq.EOP- n/a n/a n/a 111,050 sf n/a n/a n/a Up to 130 Up to MEND 2,6 acres 28,600 sf a 14 July 2015' .fl I+ ?•;7 (1) Based on 8,O01hf of commercial/office use. BuildingSetbafJe' s n (2) Assumes acquisition of residential property and purchase agreement with Newhall. •;_ Parkmg5etbuek" c' , r . N Pro erly Boundary, � �; �� � .�;F; k �,� _ � � ,,� _ 'fir �F � �" `��► - iamftn�t Sal :, � •�; tion`" ptc?} ' �> +� ` t �'�pt�9•' i i .q A. 8f rp Y f \3 13 REDEVELOPMENT/ 2.6 acres:t!41,0S sf HITT. .58.8E S- 31,159 sf( _ II iI � � >r � h '` , , `. _ �' �> �_� • � `�� '`'r . IParkrfra {oc,for. t4 :spaces + �—� �•-; - R ' _ s Pan lotfor 1117spaces+urcula ' " } f*r9 Rsf`appn Ifusr►d est zG3 sf pp � �l}W�4 4 .,M "Y= ExrstingBuildil 3 r i a • e -in _cx _ s +" ■ # \ ;� __ �e Area=g6.Ah o g� crea 4i?S a -n VARI frKIN- ODTRAIL S�AHM alBuilding�ano r�beiplR�ff�st andlor�stamtwfder. mg Requrr 6pai ngspi LEGEND II® NewSignagelowdon _r BuidingSetbacF—=7b-0rg&ildirr� Potential Storm water Treatment L— I J parking Setbadf Potential Bmldbn4 Trail Route L _ _1 Property Boundary Potential Building 1 CSAR 50 Kenwood Corridor Study- 2015 Concept C-1 va" V99. ii • t (i tf!! iiia 1B• uaua Siang �it y (D . �.�flitil�+Is� = 13" 1i 1s � �,.4E7yCt" 12' i ` • ►... �. t oilA (D 'a I r -E- i. 1 0 40 --$a -- ---_I , CL IBWVW��FEET h I�c - blU w o°'oo °SgoS0�SSSSSS SSSSSS SSSSSS 5 O 0 0 C% 0 0 0 0 0 0 0 0 0 0 0 iN O O o 0 0 o 0 0 0 0 0 0 0 z N a c O 0000000800 C SSS 0 S C S C S o S C S S 0(=)C:) o S S CW7 O cK) o 0 0 0 0 0 C O 0 0 0 C 0 0 0 0 0 M O 0 0 0 0 S 5 N N�N O p O O O O O O O O O O O o 0 0 0 0 0 o a o0 0 oc o o Oo C o c S o o S o 0 0 0 0 0 0 0 C 0 00 S o O kn o S c o 00 r, Q �C, N a N 000 S o N o rai, m z 50 W N a a W o000000000000 VI) g00000VnC00V)C00080 o 0 0 0 0 0 0 0 0 0 o� 0 W W 0 0 0 1— 0 0 o r o V" C o 0 O N C 0 [- C 0 0 0 0 W) ci o r 0 0 0 N C 00 o C.4W W O� 0 a,\0 \o 't kn to 0� r- V) O 00 W0 N h ti � M 00 06 M >4 O N O O "t 0 C 0— 0 — — O M M O O — N:T — O M W O't — O N C— [o 0 N a � OSooSpSSSSSSOSSSSSSSSSSS00:° S S [= O O cn 1>9a, O cK) o 0 0 0 0 0 C O 0 0 0 C 0 0 0 0 0 M O 0 0 0 0 S 5 N N�N O p O O O O O O O O O O O O O C O O O MO O O O O O O 00 00pO Q �C, N a � � � S ago OM � � � � � M �y N N M � •�-� z r, 0 a >4 N N N— \o W)O O N — M O V7 V') — 000 l— O O Wn to M \o O C:>— O O a O 0 C SI 0 0 0 �I 0000 O NI 0 0 On OI O O 00 NI 00 O d 0 0 O0 C O M N a 0o o n c b q v°`� E� L x k N .° c c 3 a� c�� °? w b� '❑ o� w o o :� y° o eu c x sWe v D^^> aai ° m 3 h 7S A F U u U c F H¢ da°'' v) 3 W OSooSpSSSSSSOSSSSSSSSSSS00:° S S w 0 S S S S S S O OOOQO OOOOOOO O O O O O O O Z N 00pO Q �C, N a � � � S ago OM � � � � � M •�-� r, 0 U � w SV)S kn SSV)r-knSSN0Woo SSSSl C 0 C c� S S W kn N a 01 O, D O O cY cV N O C ri 0 0 0 c-! 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(/�] x V] 0� N U u0 C y v Cds ,C C •� 00 bA ... w ❑ C U 8' u M ao¢ w C b 8 U U 3 a aN a a v] a� u e U > 6 CD 0 0 0 O O O Cl O O O O 0 O O O N 'IT O I — O O O O 0 C7 O O C7 O — M n O O 0 0 0 0 O 0 8 l0 CA 00 O O � IOI I+ Li O, O O O O O W o ti bA � Z N 0 0 0 0 d' O� OG N 0 ~ a a� O o O O o N 0 O O O N 'IT O I — O O O O 0 C7 O O C7 O — M n O O 0 0 0 0 O 0 8 l0 CA 00 O O � IOI I+ Li O, O N ti bA � U W ~ O a rx En April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 April 2016 B1 Past Tw Permits 350 359 476 459 470 388 415 358 369 363 286 408 383 gilding Activity elve Months Permitted Units 451 516 1,150 795 739 903 1,000 1,142 1,018 657 371 615 788 Permit Value 124,785,234 132,481,620 197,667,693 183,981,191 176,709,583 160,334,788 189,837,165 190,853,265 182,593,983 143,901,986 121,414,561 153,737,216 140,423,137 EMay-15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 April -16 YTD -16 168 702 436 297 532 599 479 671 309 92 221 415 1,035 Multifamily Construction as a Percentage of Total Activity EMay-15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 April -16 YTD - 1E 23 32 61 45 58 64 73 64 44 24 35 52 42 April Top Cities for Building Activity YTD Permits Permitted Units Permits Permitted Units Blaine 23 Minneapolis 243 Woodbury 89 Golden Valley 419 Lakeville 22 Prior Lake 178 Plymouth 87 Minneapolis 388 Plymouth 19 Blaine 23 Lakeville 87 Prior Lake 204 Otsego 18 Lakeville 23 Blaine 84 Woodbury 108 Woodbury 15 Plymouth 19 Otsego 61 Lakeville 91 Otsego 19 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 riot include the landllot costs. Permits Permitted Units Permit Value YTD 2012 I 1,908 I 350,831,946 Five -Year Comparisons 1,386 2,475 Permits Permitted Units Permit Value YTD 2014 April 2012 294 1 387 93,322,898 April 2013 372 t 817 134,217,869 I 2,318 I April 2014 350 744 123,276,172 1,440 April 2015 350 I 451 124,785,234 April 2016 383 ! 788 140,423,137 EMay-15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 April -16 YTD -16 168 702 436 297 532 599 479 671 309 92 221 415 1,035 Multifamily Construction as a Percentage of Total Activity EMay-15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 April -16 YTD - 1E 23 32 61 45 58 64 73 64 44 24 35 52 42 April Top Cities for Building Activity YTD Permits Permitted Units Permits Permitted Units Blaine 23 Minneapolis 243 Woodbury 89 Golden Valley 419 Lakeville 22 Prior Lake 178 Plymouth 87 Minneapolis 388 Plymouth 19 Blaine 23 Lakeville 87 Prior Lake 204 Otsego 18 Lakeville 23 Blaine 84 Woodbury 108 Woodbury 15 Plymouth 19 Otsego 61 Lakeville 91 Otsego 19 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 riot include the landllot costs. Permits Permitted Units Permit Value YTD 2012 926 1,908 I 350,831,946 YTD 2013 1,386 2,475 514,721,124 YTD 2014 1,378 1 2,755 I 545,275,612 YTD 2015 1,388 I 2,318 I 576,303,972 YTD 2016 1,440 2,431 559,476,900 Total Multifamily Units EMay-15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 April -16 YTD -16 168 702 436 297 532 599 479 671 309 92 221 415 1,035 Multifamily Construction as a Percentage of Total Activity EMay-15 June -15 July -15 Aug -15 Sept -15 Oct -15 Nov -15 Dec -15 Jan -16 Feb -16 Mar -16 April -16 YTD - 1E 23 32 61 45 58 64 73 64 44 24 35 52 42 April Top Cities for Building Activity YTD Permits Permitted Units Permits Permitted Units Blaine 23 Minneapolis 243 Woodbury 89 Golden Valley 419 Lakeville 22 Prior Lake 178 Plymouth 87 Minneapolis 388 Plymouth 19 Blaine 23 Lakeville 87 Prior Lake 204 Otsego 18 Lakeville 23 Blaine 84 Woodbury 108 Woodbury 15 Plymouth 19 Otsego 61 Lakeville 91 Otsego 19 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 riot include the landllot costs. 651-259-7432 � ment Economic. Developstate.mn.us • m n.govi aeed/business flapartment of Employm enf wW Economic Developmwd 2015 Minnesota BUSINESS EXPANSION PROJECTS B` 1 P T H E N U M B E R f E Sr 87 The CNBC business channel confirmed last year what many people in Minnesota already know: The state is a great place for business. CNBC named Minnesota "America's Top State *MINNESOTA* for Business" in 2015, based on 60 measures qqq of competitiveness, including the cost of doing business, workforce, economy, infrastructure and transportation, education, cost of living, access to capital, innovation, business friendliness and quality of life. Minnesota received the highest combined score when all the categories were added up. Minnesota's top category was education, where it ranked second, thanks in large part to some of the best -performing K-12 students in the country. Education has long been a point of pride in Minnesota, a key value that officials believe sets us apart from other states. "Our schools, colleges and universities underpin our better workforce, higher -quality public services, healthier citizenry and superior quality of life," said Gov. Mark Dayton. Another category where Minnesota ranked high was quality of life, finishing third. Among other things, CNBC cited the state's low crime rate, clean air and healthy residents. The state's overall economy also got a nod from CNBC, ranking fifth -best in the country. The state's unemployment rate is among the lowest in the U.S. and its labor force participation rate consistently among the highest. Minnesota added more than 42,000 new jobs last year and has created more than 250,000 jobs since coming out of the recession. The state is home to 17 Fortune 500 companies, including Best Buy, UnitedHealth Group, Target, 3M and Hormel. "The CNBC ranking underscores Minnesota's ability to offer the complete package to businesses with an emphasis on a talented, educated workforce that is encouraging growth throughout the state," said Commissioner Katie Clark Sieben of the Minnesota Department of Employment and Economic Development. "What it is about RAinnesota that draws people and draws business here is great people, a very well-educated workforce and highly -productive workers. The bottom line for businesses is profitability, and it has been proven here that Minnesota businesses do very well." — Mark Dayton, Governor of Minnesota Minnesota Department of Employment and Economic Devs'e pmert 0 2015 Minnesota BUSINESS EXPANSION PROJECTS Alexandria Extrusion Co. ALEXANDRIA The Alexandria -based aluminum extrusion business plans to spend $4 million to build a 38,000 -square -foot addition. The company expects to create 15 jobs paying an average wage of $16.50 an hour. Extrusion is a process for shaping material, such as aluminum, by forcing it to flow through a shaped opening in a die. Alexandria Extrusion markets its products to companies in a variety of industries, including electronics, medical equipment, power tools, telecommunications and transportation. Andersen Corp. COTTAGE GROVE AND NORTH BRANCH Andersen Corp., the country's largest window and door manufacturer, said it was investing more than $45 million in facilities and equipment in a major expansion of its Cottage Grove and North Branch operations. The expansion will support the future growth of the company's Renewal by Andersen window replacement business. About 200 jobs are expected to be created. Sil-Pro DELANO The contract medical device manufacturer unveiled plans for an $11 million expansion of its corporate campus in Delano. Sil-Pro, which specializes in developing and manufacturing silicone and thermoplastic medical devices and components, said it will add 57,000 square feet to an existing building at 751 Seventh St. S. The company expects to create 104 jobs paying an average wage of $19.60 an hour within three years. LAI ) �.'' _C_:M "Sil-Pro's expansion will create more good jobs for Minnesotans and further strengthen Minnesota's position as a medical device industry leader." — Tina Smith Lieutenant Governor of Minnesota 0 2015 Minnesota Lusa ;as E;c, ; icn Projects 2015 Minnesota BUSINESS EXPANSION PROJECTS Viracon OWATONNA Viracon, an Owatonna -based manufacturer of high-performance architectural glass for the commercial sector, is building a $50 million addition that will help the company meet demand for larger glass panels. The 300,000 -square -foot facility will contain new manufacturing technology, fabrication equipment and automation. The project, which is expected to be completed next year, will bring Viracods total footprint in Owatonna to 1.5 million square feet. Viracon has more than 1,500 employees in Owatonna and expects to add another 100 positions when the addition is completed. The company's products have been installed on numerous buildings nationwide, including the new Minnesota Vikings stadium in downtown Minneapolis. Cirrus Aircraft Corp. DULUTH Aircraft manufacturer Cirrus said it will build a new $12.7 million painting and finishing facility and create 150 jobs, bringing the company's total workforce in Duluth to about 825. The 68,000 -square - foot building will be built in the Duluth Airport Industrial Park, near the existing Cirrus facility. Total expansion costs will be nearly $16 million, including the new building, infrastructure and equipment. Officials said the expansion is being driven by growing customer demand for the company's aircraft, including the new $2 million Vision SF50 jet, which Cirrus expects to begin delivering in the second half of the year. L '771ffAcoO course, you know ho,�4i we few about ear employees up he e. `re'e've got the best employees in the world, and when it comes to manufacturing, nobody out -manufactures us. That's why we're the envy of the industry." — Bill King Vice President of Business and Administration Cirrus Aircraft Corp. Minnesota Deparimeni of Employiment and Economic Development 0 Company: Smiths Medical Headquarters: Plymouth Industry: Medical device manufacturer Investment: $7.54 million Job Commitment: 162 newjobs at nearly 45 an hour When Arden Hills -based medical device manufacturer Smiths Medical went looking for a bigger headquarters a few years ago, the company cast a wide net, including looking outside the state. In the end, Smiths chose to remain in the Twin Cities, announcing that it would relocate its headquarters and non -manufacturing staff to an existing 182,000 -square -foot building in the Bass Creek Business Parr in Plymouth. The company said it would move 4010 current employees to the new site and add 162,jobs paying an average wage of $45 an hour. Keeping Smiths Medical in Minnesota was a big deal and a testament to the strength of the medical device sector in the state. Minnesota has more than 29,000 people working in the industry — second only to California. President and CECT Jeff McCaulley said the company wanted to remain in the Twin Cities because of the region's healthy economy and available pool of talent. Smiths Medical, a subsidiary of London's Smiths Group PLC, manufactures and sells drug -infusion pumps and consumable medical products like catheters and needles to hospitals and surgical centers around the world. The business also sells a range of medical products for the military and veterinarians. The company has operations in more than 30 countries and sells medical products in about 120 international markets. 2015 Minnesota BUSINESS EXPANSION PROJECTS Werner Electric COTTAGE GROVE Electrical supply distributor Werner Electric said it will expand its operations in the Cottage Grove Business Park and add 70 jobs. The 96 -year-old company plans to add 45,000 square feet to its warehouse and another 15,000 square feet of office space to handle finance, purchasing, pricing, human resources and other administrative responsibilities. The company expects to invest $4 million in the construction phase of the project. Werner officials said they need to expand to accommodate rapid growth. Company revenue has nearly doubled since 2010. Uponor APPLE VALLEY Uponor, which makes plumbing, heating and cooling systems for the global market, said it will invest $18 million to expand operations at the company's North American headquarters in Apple Valley. The company said it will add 88,000 square feet of manufacturing and office space to an existing building and hire 100 additional workers, bringing total employment in the Twin Cities to 600. Company officials said the expansion will accommodate Uponer's growing production needs for the next two to three years. Arctic Cat THIEF RIVER FALLS AND ST. CLOUD Minneapolis-based Arctic Cat Inc., which makes snowmobiles and other off-road vehicles, said it planned to create 50 jobs and invest nearly $27 million to expand manufacturing facilities in Thief River Falls and St. Cloud. The company will add a new state-of- the-art production line in Thief River Falls and expand its engine manufacturing operations in St. Cloud in response to growing product demand. "We are grateful to the cities of Thief River Falls and St. Cloud, and the state of Minnesota, for their suppor'c as we invest in our shared future.f5 — Christopher Metz President and CEO of Arctic Cort Minnesota Department of Emplu merit and Economic Development 0 The Angel Tax Credit Program is setting the stage for the next generation of companies in Minnesota. Last year, 114 startups in the $ "f program attracted more than $70 million in investments. , A SAM RMWIN T a J �r Under the program, qualified investors receive a state tax credit of 25—MENE10— percent for investing at least $10,000 in qualified businesses. Every $1 in tax credits awarded to private investors generates $4 in investments for startup businesses. The program has been a huge success since it was launched in 2010, attracting nearly $320 million for business startups. That's capital that otherwise would not have been available to unproven startups that often struggle to get funding from traditional sources like banks. Here are some promising Minnesota businesses that were funded last year: Vios Medical Inc. The St. Paul company raised $1.5 million through the program in 2015. The women -owned business is developing a system for monitoring a patient's vital signs using wireless technology. 75F 75F, a Burnsville company that uses wireless technology to reduce commercial heating and cooling costs, attracted $555,000 in investments through the program last year. The company, which was launched in Mankato in 2007 by CEJ Deepinder• Singh, uses wireless sensors and other technology to automatically adjust temperatures in commercial buildings, based on whether people are in the area, weather data and other factors. The company won the Minnesota Cup grand prize in 2014. MyMeds Inc. Minneapolis-based MyMeds is a secure cloud -based web and mobile application that helps people manage their schedules for taking medications. The business raised $1.6 million through the program last year,. 6 2015 Minnesota BUSINESS EXPANSION PROJECTS Amazon.com SHAKOPEE Amazon.com announced plans to open its first facility in Minnesota - a massive 820,000 -square -foot distribution center and warehouse in Shakopee. Orders will be packed and shipped at the $220 million facility, which is set to open this fall. About 1,000 people will be employed at the center. The center is part of an effort by the Seattle - based online retailer to offer faster service in the Twin Cities. Grede Holdings ST. CLOUD Grede Holdings completed a $17.5 million expansion of its foundry in St. Cloud last year. The company added 32,000 square feet to the facility and plans to hire another 30 workers, bringing total employment to 350. The foundry, which was founded in 1991, produces ductile iron castings for automotive, truck and industrial equipment. Company officials say the foundry is one of the premier metal casting facilities in the world and was named Grede's plant of the year in two of the previous three years. Lifecore Biomedical CHASKA The biomaterials manufacturing firm planned to invest $18 million and create 68 jobs in an expansion of its facilities in Chaska. The company's plans include expanding an existing facility at 3515 Lyman Blvd. by 25,000 square feet to create room for a medical manufacturing cleanroom and quality control laboratory. The new jobs will pay an average hourly wage of $27.17. Sportech ELK RIVER Sportech Inc. announced plans in July to increase its workforce by 43 employees and invest $6.5 million in an expansion of its manufacturing facilities in Elk River. The company, which makes windshields, body panels and screen print parts for motorcycles, snowmobiles, all -terrain vehicles, and other recreational and utility vehicles, plans to build a 105,000 -square -foot production facility, with room to expand. The new jobs will pay an average hourly wage of nearly $16. r A 6 �. R ��y Minnesota Department of Employment and Eccnrxmic Davelopment 0 Minnesota Cup: encouraging Business Innovation Minnesota and innovative ideas go hand in hand. The mechanical heart valve, supercomputer, black box, snowmobile and Scotch Tape are among the many products that were invented in the state. The Minnesota Cup is keeping that spirit of innovation alive. The nation's largest business competition awards tens of thousands of dollars in prize money each year to Minnesota entrepreneurs with great ideas that can be turned into business opportunities. Last year's Minnesota Cup winner was Minneapolis-based venture Astro -HQ. The company, launched by former Apple employees Matt Ronge and Giovanni. Donelli, was lauded for its innovative new software called Astropad. Astropad enables artists and designers to use their 'Phones and Pads as graphic tablets. The software is aimed at users who need computer -connected tablets for drawing, painting or photo retouching but cannot afford high-quality graphics tablets. Astropad also works with all pressure - sensitive stylus pens for 'Pad and 'Phone. Scott Litman, co-founder of the Minnesota Cup, said officials were impressed with the new app and saw great potential for the business to succeed. "Our Judges were struck by Astropad's unique vision, well -honed presentation skills and comprehensively prepared business plan. We look forward with excitement to watch this innovative idea grow into a dynamic business with real- world impact, including localjob growth;" he said. Astro -HQ co-founder Ronge said winning the contest means everything in terms of advancing the company and its brand. More than 1,300 participants entered last year's 11th annual Minnesota Cup competition, with awards presented in several categories. Astro -HQ won 530,000 in the contest's high- tech division and later took home another 550,000 as the grand prize winner. In addition, the company will receive services to help guide its growth. 8 2015 Minnesota BUSINESS EXPANSION PROJECTS Mendell Inc. LAKEVILLE Mendell, Inc. announced plans to expand its operations in Lakeville and add 25 full-time jobs. The company said it will spend $2.36 million to renovate an existing facility at 21463 Grenada Ave. and build an 18,700 -square -foot addition. Mendell is a precision medical life sciences company that manufactures custom implants for the orthopedic, orthopedic spine and cardiovascular markets. Rahr Corp. SHAKOPEE Rahr Corp., which produces and distributes malt and other related brewing supplies to customers around the world, launched a $68 million expansion project that included the construction of four new facilities: a malt house, pilot brewery and technical center, maintenance warehouse, and distribution center. Once the project is completed, the company's headquarters in Shakopee will be the largest single - site malting facility in the world. Rahr, which was founded in 1847 by German immigrant and brewer William Rahr, is owned and operated by the fifth and sixth generations of the Rahr family. Fast Manufacturing WINDOM The manufacturer of sprayers and applicators for agricultural use will invest $4.2 million over the next several years in machinery and equipment upgrades at its manufacturing facility, along with additional site improvements. The expansion will include 143 jobs paying an average wage of $19 per hour. Post Holdings LAKEVILLE Post Holdings moved its cereal headquarters to Lakeville after acquiring the Minnesota-based maker of Malt -O -Meal for $1.15 billion. Post's cereal headquarters had been based in New Jersey. The company said it will save about $50 million a year by combining operations in Minnesota. Post's main headquarters will remain in St. Louis. The company's cereal brands include Honey Bunches of Oats, Raisin Bran, Grape -Nuts and Honeycomb. ,71 47. ` K_ mi. y- !Adnnesota Department of Employment and Economic Devei pment 0 MINNESOTA 2015 BUSINESS EXPANSION {PROJECTS Account Nam iC Maplewood Manufacturing 50 3M "Co Abdallah's Inc Burnsville Manufacturing King Ulutions Iric Ability Network Minneapolis :Professional Se-wes 167 Accurate Home Care LLC Otsego Health Care/ Social Assist Life :Fitness ADoHh Alliancr. Nut ition Glencroe Monjatturing Lifecore Biomedical Alexandria Extrusion Co Alexandria Manufacturing 15 pAJly Financial Shoreview "Frnancei 250 Rochester'A"e11t}i Mendell Machine & Mfg Inc Amazon.com Shakopee Warehousing 1000 American Logistics Cottage. Grove . ;stirs Monsanto Company - Olivia Amensource Bergen Eden Praine Warehousing i�'tlfisfr Andersen Corp ct ottage`'srmt!e ;Ms1s�+irg 200 Andersen Corp North Branch Manufacturing 100 }i�rii CP'ar�D$1 _ b - lil i i'.:Lit-ok -.- _ Apra nufactu ring i3 PricewaterhouseCoopers Minneapolis Arts/ Anytime Fitness Hastings Entertainment/ 60 Qumu Edina Rec 17 Rel-ir Co-po>`rion ia*;*,s,, MznOaciurog 34 Arctic Cat inc St Cloud Manufacturing 10 3iaS Golden Valley hhanofacturing 12 Blattner Energy Avon Construction 12 ue Cross 43l'uetd /iF.lnneapoll� inarstre' 100 St PC'u'l ir,--)rrnat=on Calyxt New Brighton Agnculture 75 -SkyWater Search Partner Inc ]Minnetonka Caterpillar Paving Products Inc Brooklyn Park Manufactunng 31 'CHS Inc l<nvlie iA�+nculture !semi Gyrus Design Corporation Duluth Manufacturing * CMCU Melrose Ernartrre"Igc 30 Comcast Cable St Paul Information Woodbury Creganna Medical Plyniouth h6nuf mtul11`Ig 50 Dedicated Networks Inc Ramsey Manufacturing 30 f0anufat:tv6 SunOpta Inc Dubow Textile Inc St Cloud Manufacturing 20 Ccolzb Inc St Paul it tnuf„acturing The Bernard Group Fanbault Foods Inc Minneapolis Manufacturing 6 JW40*41""14ft, Windom Mia+nui7acturing 143 FedEx Ground Brainerd Transportation Casino ?il=ield Nation MinneapolisotssiffNrl united'"talt'heare'Seivices Flint Hills Resources Rosemount Manufacturing ,Minnetonka 440 i [ ! Uponor Corporation Gopher Sport Owatonna Manufacturing 12 Grede LCC St Cloud :.Monti : , ,t}8 .iL 30 Gypsoil Blendable Pelleted Winona Manufacturing 20 RarnsFy Manufacturing WAND Corporation qyG91yypsum4WAgg^^ Manufacturing -W 'l sir ., 'Y, ..._ -i Innovative Food Processors Fanbault Manufacturing When I Work Iniereum Plymouth l?rofessr"irnal r 'YoungAimoaricanCorporation JAMF Software Minneapolis Professional , .Services 50 Japs-Olson Company St Louis Park Manufacturing 150 King Ulutions Iric Dayton " Qttner Vices LEI Packaging Chisago City Manufacturing 25 Life :Fitness Ramsey : M. P4 . turing Lifecore Biomedical Chaska Manufacturing 68 Care/ Mayo Clinic Health System Rochester'A"e11t}i Mendell Machine & Mfg Inc Lakeville Manufacturing 25 snt®C6hr>;pany ', o on Cl;mdon iota tm a Monsanto Company - Olivia Olivia Agriculture 5 i�'tlfisfr , _ F?arV ritF+?i P&F Machining Dayton Manufacturing 17 41ia l3atFiFLlf B ,_. :' p�iiirg :....s I nvEJ y 90 PricewaterhouseCoopers Minneapolis Professional Services Prime Therapeutics Eagan S-ifi�rice`� true 375 Qumu Edina information 17 Rel-ir Co-po>`rion Shakopee Menufacturing 20 Recombinetics Inc St Paul Professional Services 10 rnewalr iersran' CLitL&p�C GrOF+z^ CtlnSir4GtlOn j00 F Ryan Companies Minneapolis Construction St PC'u'l ir,--)rrnat=on Inc Bloomington ProSiteimprove Servesslonal ervices -SkyWater Search Partner Inc ]Minnetonka e>isttrtt 24 SmartThings Y Minneapolis Manufacturing Sno'Iznz+, 1%4innesata !semi Manufactr;ring 25 Sportech Inc Elk River 10iinufactunng 43 SSS fil.-.-Iu acturina .Lakeville - Munufcaturing Summit Orthopedics Ltd Woodbury Health Caret Admn Social Assist SunOpta Inc l:rlrla f0anufat:tv6 SunOpta Inc Edina Manufacturing 22 Terga Corp /+ iinneapolis 13v''aui 500 The Bernard Group Chaska Manufacturing 240 Tore Compan% - Windom WintIom 4iirmisfecturmg 25 Treasure island Resort & Welch Art&/ Entertainment/ 20 Casino Rec united'"talt'heare'Seivices lei+$ftli Cara 1700 ,Minnetonka Uponor Corporation Apple Valley Manufacturing 100 Urb&n Organics Si Pani Agricultore Verndale Custom Builders Verndale Manufacturing /isicn-'_a e Lens RarnsFy Manufacturing WAND Corporation Eden Praine Manufacturing -W 'l sir ., 'Y, ..._ -i ., .. ro9re W 70 When I Work St Paul Information 60 'YoungAimoaricanCorporation Chanhzss4rn jAdnitniii t"Tt,Services Business and Community Development Division Minnesota Department of Employment and Economic Development 332 Annesoia Street, Suite E200 St. Paul, M N 55101 oeparhnerit of Employment grid Economic Uevelopnierit mn..gov/deed/business 5/19/2016 Edina's building boom offers the latest sign of a suburban shift J Star Tribune WEST METRO Edina's building boom offers the latest sign of a suburban shift By DAVID PETERSON, STAR TRIBUNE May 19, 2016 -1224 AM V 101 The fully built -out suburb of Edina is managing to find stray corners in which to pack an extraordinary number of new living units. And its success suggests a new wave of urbanized suburbia could be on the way. The west -metro suburb, which for decades averaged just a trickle of new homes annually and a stagnant population, last year recorded a stunning 1,174 building permits for new living units, according to a data set released this week by the Metropolitan Council. hftp://m.startribune.com/edina-s-building-boom-the-latest-sign-of-a-shiftl38006264l/ 1/6 5/19/2016 Edina's building boom offers the latest sign of a suburban shift i Star Tribune Edina shows big gains Edina's newly permitted residential units for 2015 tower over recent years, and were matched only in the early 1970s. ON M lf7 CO 1' W W O N M In O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N New home permits by year. Source: U.S. Census Bureau Get the data Among the Twin Cities' inner suburbs, St. Louis Park and Bloomington also have been hot spots for multifamily construction. St. Louis Park in 2015 recorded 389 new housing units, making a total of 1,356 over the past five years. Bloomington had 426 units, part of a five-year total of 1,489, the Met Council reports. The trend shows renewed interest in first-tier suburbs that are seeking to bring the bustle and convenience of urban life to typically staid suburban settings. No other first -ring suburb in the Twin Cities has come close to Edina's 2015 mark in decades. Edina itself last soared that high in 1972, when it was still turning farmland into subdivisions. http://m.startribune.comledina-s-building-boom-the-latest-sign-of-a-shif t3800626411 2/6 5/19/2016 Edina's building boom offers the latest sign of a suburban shift I Star Tribune Not coincidentally, the U.S. Census Bureau on Thursday will name Edina as one of seven American cities last year to breach the 50,000 population mark for the first time. It's all the delayed result, officials say, of a decade -old decision to transform the Southdale commercial district. Said Edina development chief Cary Teague: "We're turning gray to green — from parking lots to landscaping and green roofs on luxury apartment buildings." That multifamily building boom, which is being echoed in other close -in areas, is mirrored by a lagging pace in the outer suburbs and could contribute to a slowdown in the loss of farmland and natural areas. That's a concern that, while lifting a bit during the housing bust, is back. A national group warned this week that the West is losing a football field's worth of natural areas every 21/2 minutes. "Wow!" exclaimed Alex Dodds, of the Washington, D.C.-based Smart Growth America, when she heard the number of permits in Edina. Her group advocates for creative reuse of aging, close -in parcels near transit lines. "A huge part of this," she said, "is suburbs wanting to compete with cities for people wanting that walkable urban -type lifestyle." Rice Creek Commons, the megaproject proposed for the 427 -acre former munitions site in Arden Hills, is being planned to offer a variety of residential settings and price points but with an emphasis on a walkable lifestyle —jogging paths, a re -meandered creek and "brew pubs on 18 different corners," joked Ramsey County Commissioner Blake Huffman. Edina's new units tend to be senior or luxury apartments with a sprinkling of hftp://m.startribune.com/edina-s-building-boom-the-latest-sign-of-a-shiftl38006264ll 3/6 5/19/2016 Edina's building boom offers the latest sign of a suburban shift I Star Tribune affordable units often negotiated by the city, Teague said. The units attract a mix of millennials and empty -nest baby boomers, he said. Waiting on the millennials Cities, too, are benefiting from an increasing desire for lively and walkable neighborhoods. Closer in, springing back The two urban counties are leaping back more strongly from their housing -bust depths than the five suburban counties. Source: U.S. Census Bureau Get the data The latest building permit data from the Met Council shows that St. Paul, whose popular light-rail Green Line is attracting construction cranes, recorded 1,336 new units in 2015 after averaging about 440 per year for the previous decade. St. Paul has exceeded the l,000 mark only one other time since the early 198os. Minneapolis, generally far busier than St. Paul, tailed off in 2015 for the second year in a row, to 1,538 units. It reached more than 3,000 in 2012 and 2013 during a boomlet centered notably around the University of Minnesota campus. In a sign of robust vitality among other regional hubs nationally, the U.S. Census Bureau will report Thursday that Denver has become one of the nation's 20 most populous cities, moving up two spots to 19th and displacing Detroit, which drops from 18th to 21St. Seattle moved up two places to 18th, and along with Denver ranks among the nation's 11 biggest numeric gainers. Denver, whose downtown fringes are thronged with new http://m.startribune.com/edina-s-building-boom-the-latest-sign-of-a-shiftl380062641/ 4/6 2008-2011 2012-2015 Hennepin 23.622 Ramsey 2,008 5.474 Inner urban* 29.096 Anoka 2,377 4,337 Carver 1,509 2,616 Dakota 3,225 5.4' r Scott 1,712 2,654 Washington 3,238 3,706 *Hennepin and Ramsey counties. Source: U.S. Census Bureau Get the data The latest building permit data from the Met Council shows that St. Paul, whose popular light-rail Green Line is attracting construction cranes, recorded 1,336 new units in 2015 after averaging about 440 per year for the previous decade. St. Paul has exceeded the l,000 mark only one other time since the early 198os. Minneapolis, generally far busier than St. Paul, tailed off in 2015 for the second year in a row, to 1,538 units. It reached more than 3,000 in 2012 and 2013 during a boomlet centered notably around the University of Minnesota campus. In a sign of robust vitality among other regional hubs nationally, the U.S. Census Bureau will report Thursday that Denver has become one of the nation's 20 most populous cities, moving up two spots to 19th and displacing Detroit, which drops from 18th to 21St. Seattle moved up two places to 18th, and along with Denver ranks among the nation's 11 biggest numeric gainers. Denver, whose downtown fringes are thronged with new http://m.startribune.com/edina-s-building-boom-the-latest-sign-of-a-shiftl380062641/ 4/6 5/19/2016 Edina's building boom offers the latest sign of a suburban shift I Star Tribune housing, added 18,582 people to bring its total population to 682,545, while Seattle's corresponding figures are 15,339 and 684,451. The matter of where 20 -something millennials will end up as they begin to buy homes is one of the most keenly followed questions just now in the field of demographics, said state demographer Susan Brower. "We see tremendous growth in center cities," Brower said, "but will [millennials] stay, or move to the first ring? That 2540-29 group is a big one, and we see a drop-off typically renting around that age or soon after. "I do not see from this week's data or anything in the last five years a strong preference for one kind of city — meaning center cities — emerging suburbs, exurbs. We see growth across the types. I don't know if it's too early still, or if there's not a strong preference." David Peterson • 651-925-5039 Comments NEXT IN LOCAL Suit: Southwest light rail too noisy for residents in Hopkins, Minnetonka Gallery: St. Paul police Memorial Day service Mpls. sick -leave proposal brings a day of emotional testimony Twelve of 20 drunkest U.S. cities are in Wisconsin; Mankato 10th Jury selection to restart in officers' case against gun shop http://m.startribune.00m/edina-s-building-boom-the-latest-sign-of-a-shiftl3800626411 5/6 5/2/2016 In Twin Cities, as demand rises, so do entry-level homes - StarTribune.com BUSINESS In Twin Cities, as demand rises, so do entry-level homes As first-time buyers in the Twin Cities slug it out over a paltry number of listings, homebuilders are scrambling to help satisfy that demand by ramping up construction. By Jim Buchta (http://www.startribune.com/jlm-buchta/10644536/) Star Tribune MAY 1, 2016-2:51PM After 12 long months of shopping for their first house, Erica Jost and her fiance hit a dead end. Though willing to spend up to $350,000 for a house in the burbs, there were few that fit their needs. When they found ones that did, they were already sold and sometimes for more than the seller was asking "We weren't seeing many on the market," Jost said. "The ones that were on the market were in my opinion priced a little high for what they were offering." A co-worker had the same problem and suggested buying new, so Jost took that advice and ordered a four-bedroom, 3,000 -square -foot house in Hugo that will be ready in October. "We ended up going a little over our initial budget," Jost said. "But we got to customize this house to exactly how we would want it." As first-time buyers in the Twin Cities slug it out over a paltry number of listings, homebuilders are scrambling to help satisfy that demand by ramping up construction of less expensive houses than the ones they've been building since the housing crash. "There's a lot of opportunity out there and builders are looking to fill that need," said Herb Tousley, director of the University of St. Thomas Shenehon School of Real Estate. A national survey of homebuilders last week by Builder Magazine shows a 25 percent increase in the number of companies that are devoting at least half of their new houses to entry-level buyers. Before the Great Recession, inexpensive townhouses dominated the landscape, especially in exurban areas where developers were converting farm fields into highly affordable neighborhoods as they sought to expand their buyer pool. Since the housing crash, however, builders focused on move -up buyers, many of them willing to spend a half -million dollars or more on custom-designed houses where there's far more room for profit than with starter houses where the margins are razor thin. Though there's now plenty of demand, catering to the entry-level market these days isn't easy, builders say. That's because land, labor and material prices have risen, they say, making it difficult to keep costs low and to deliver quality houses that won't tarnish their reputation with ticky-tacky finishes and unattractive designs. Plus, for companies building townhouses governed by community associations, there's the heightened risk of long-term legal liability of the state's stringent construction defect laws, which make builders and sometimes their subcontractors responsible for certain components for 10 years. "It's an issue that's always in the back of my mind," said Tom Wiener of Cardinal Homebuilders in Oakdale. Wiener said there's growing demand from millennials who are willing to spend more than $300,000 on their first home. The trend, he said, is forcing builders to think more seriously about how to change their marketing to attract those buyers. "Millennials are on our radar right now," he said. "They have a double income, no kids, and they have money and are willing to spend it." (hfp://stmedia.startribune.com/images/ows 1461983746785; RENEE JONES SCHNEIDER, STAR TRIBUNE The PulteGroup is building a townhouse development in Apple Valley as part of an effort aimed at entry-level home buyers and... hfp://www.startribune.com/in-twin-cities-as-demand-rises-so-do-entry-level-homes/377659351 /?ref=n l 1/3 5/2/2016 In Twin Cities, as demand rises, so do entry-level homes - StarTribune.com Finding more profits in those deals has become a major challenge. On top of high labor and land prices, there are new state building and energy codes intended to make houses safer and more energy-efficient, but they can also add tens of thousands to the cost of a single house, Wiener said. What constitutes "entry-level" varies dramatically depending on location, but they are generally defined as houses in the bottom one-third of the price range. And first-time buyers aren't as young as they used to be. Many are millennials who are buying in their 30s after waiting out the recession. The average price of the 458 houses on display during the Builders Association of the Twin Cities Parade of Homes this spring was $591,000. That's nearly triple the median sale price of an existing home in the Twin Cities. In the Twin Cities metro, townhouses are among the most affordable options because they take up less space and zoning rules in many communities have a smaller minimum size requirement than a single-family house. Townhouse construction peaked in the late 2000s when mortgage underwriting standards were so low that just about anyone with an income could buy a house. Even a brand-new one. At the peak of the market in 2008, about 271 attached townhouses in clusters of 16 units or fewer were built in the Twin Cities metro, but by 2011 that number declined about 70 percent. That trend has reversed. So far this year, there's been a 7 percent increase in projects of the same size, according to the Builders Association of the Twin Cities. The Twin Cities division of the PulteGroup is building townhouses with flexible floor plans that might appeal to a broad range of buyers, from millennials to empty -nesters. At Trey Point at Cobblestone Lake in Apple Valley, the townhouses have more than 1,900 square feet and can be configured with three to five bedrooms, depending on the needs of the buyer. Prices range from $238,990 to $272,630. The company is doing the same at a development in New Brighton, where sales have been brisk. "PulteGroup is making a deliberate effort to provide new home construction opportunities to entry-level buyers and millennials," said Graham Epperson, head of the PulteGroup's Minnesota division. He said that last year, less than 1 percent of the company's closings were attached product, compared with nearly 60 percent at the peak of the market. He expects to sell more than 50 townhouses this year. "While we won't ever get there again, we do expect for our percentage of attached product to increase along with the industry and market dynamics." According to an analysis of data from the U.S. Census Bureau, the National Association of Home Builders said that during the third quarter of 2015, single-family attached housing increased 30 percent from the previous year and at the fastest rate since the fourth quarter of 2007. Like many national developers, D.R. Horton has recently launched its own entry-level option, which in some markets is called "Express." At The Gables in Ramsey, for example, the company has a 1,643 square -foot, three-bedroom townhouse that's on the market for $216,465. A spokesperson said that additional neighborhoods geared toward the entry-level buyer in the Twin Cities are in the works. Jost, the first -timer who is buying a house in Hugo, said that as a new home buyer she had a surprising number of options, but pricing depended on how far she was willing to drive. Houses in Stillwater and Lake Elmo, for example, were about $50,000 more than in Hugo, but if she was willing to drive to Forest Lake they'd pay about $20,000 less. "Every development has different pricing on the lots," she said. "So you definitely have to put in some research and run some numbers." jim.buchta@startribune.com 612-673-7376 http://www.startribune.com/in-twin-cities-as-demand-rises-so-do-entry-level-homes/377659351/?ref=nl 213 5/2/2016 Report: Minnesota manufacturing continues to struggle - StarTribune.com BUSINESS Report: Minnesota manufacturing continues to struggle Widely watched Creighton University survey finds Midwest sector lackluster for April. By Dee DePass (http://www.startribune.com/dee-depass/10644746/) Star Tribune MAY 2, 2016 — 10.30AM Manufacturers in the central U.S. finally saw lackluster exports soar and managed to grow in April, but they saw overall growth slow and failed to rally new orders and employment, according to a widely watched economics report released Monday by Creighton University. Most states in the nine -state region reported job losses even as they experienced big jumps in export orders. But the region's manufacturers also saw factory orders, production, and inventories shrink in April. Minnesota was the lone state in the region to report any job growth during the month, but its overall results signaled economic contraction last month. In the end, Creighton's nine state Mid-America region reported a business conditions index that slowed to a weak 50.1 index in April. That's down from the slightly stronger 50.6 in March. Minnesota's index was 49, down from 50.7 in March. Any index below 50 signals economic contraction. Stalled hiring in factories appeared to be the key item dragging down April's Mid- America manufacturing sector, which includes Minnesota, Iowa, Nebraska, Kansas, Arkansas, Missouri, Oklahoma, South and North Dakota. The region lost 26,000 jobs over the last year, the report found. "A somewhat weaker U.S. dollar, making U.S. goods more competitively priced abroad, contributed to stabilizing business conditions across the region. At the same time continuing weakness in the region's agriculture and energy sectors remains an obstacle to improving overall growth," said Ernie Goss, director of Creighton's Economic Forecasting Group. He added that the region's trends were "much like the national reading [as it] has indicated the manufacturing sector is experiencing anemic, but stabilizing, business conditions." According to a separate, national report issued Monday by the Institute of Supply Management, U.S. manufacturers saw their index fall to 50.8 in April from 51.8 in March as new orders, production and inventories fell nationwide during the month. Only 11 of 18 manufacturing sectors reported growth during the month. Many Minnesota-based manufacturers such as 3M Co., Polaris Industries, Graco and Tennant, reported first quarter earnings results last month that showed they are still affected by unfavorable currency exchange rates and by the global slowdown of key trading partners in China, Brazil, Canada and Japan. Many noted that U.S. customers in the oil and gas industries as well as those dealing with ag equipment and mining have been hurt by industry downturns in those sectors. But even with the sobering trends, most manufacturers such as 3M held steady on their forecasts for full year 2016. They noted being "cautiously optimistic" that conditions would continue to improve worldwide. dee.depass@startribune.com 612-673-7725 DePassStrib hftp://www.startribune.com/report-minnesota-manufacturing-continues-to-struggle/377816441/?ref=nl 1/1 LOCAL Globe University/Minnesota School of Business to close 4 Twin Cities locations By Pat Pheifer (http://wwwstartribune.com/pat-pheifer/10645666/) Star Tribune MAY 16, 2016 — 11:39PM Globe University/Minnesota School of Business said Monday that it is closing campuses in Lakeville, Brooklyn Center, Elk River and Plymouth and moving students to other locations or online to continue their programs. About 45 people will lose their jobs at Minnesota campuses and the schools' Woodbury headquarters. Jeanne Herrmann, chief operating officer at Globe University, placed some of the blame on "a three-year negative publicity campaign orchestrated by the Minnesota attorney general," according to a news release from the schools. Minnesota Attorney General Lori Swanson sued the schools in 2014 alleging they used high-pressure and deceptive sales tactics to recruit students into programs that did not deliver on the promise of jobs. The suit claimed, among other things, that many students enrolled in the schools' criminal justice program only to discover their degree failed to qualify them to become police officers in Minnesota. The trial began in early April and the judge has not yet issued a ruling. "The attorney general's campaign has not only impacted our enrollment, but has also called into question the validity of the degrees of tens of thousands of our graduates," Herrmann said in the news release. The release said Lakeville students will be moved by June 30; the others by the end of the year. It does not say how many students will be affected by the transition. In addition, Globe University is consolidating four Wisconsin campuses into two — Green Bay and Appleton into one Appleton location, and Madison East and West into one East location, effective June 30. Globe University will continue to offer programs at campuses in Woodbury and Minneapolis; Sioux Falls, S.D., and Appleton, Eau Claire, La Crosse, Madison and Wausau, Wis. Minnesota School of Business will keep its campuses in Blaine, Richfield, Rochester and St. Cloud. ppheifer@stadribune.com 612-673-7252