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HomeMy WebLinkAbout07-26-16Lakeville AGENDA Economic Development Commission July 26, 2016 — 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of May 24, 2016 minutes 3. Review of Proposal from Craig Rapp LLC for to assist in the preparation of the 2017 — 2019 Strategic Plan for Economic Development 4. Review of Proposed Zoning Ordinance Changes for Multi -family Residential Development 5. Directors Report 6. Adjourn Attachments: • June Building Permit Report • June 2016 BATC Building Activity Report • New home construction accelerated sharply in June in Twin Cities, Star Tribune, 6-29-16 • New Hi -Vee grocery store in Lakeville will carry clothing, too, Star Tribune, 6-20-16 • Newest store reveals Hy -Vee is also a fast -fashion retailer and fast -casual restaurateur, 6-20-2016 • Business incentives slashed in state budget bill, 6-3-2016 • Shakopee raises minimum wages to $19 for businesses seeking city subsidies, Star Tribune, 7-3-16 • School board approves $1.6 million land sale, Sun ThisWeek, 7-1-16 • PetSmart may open in Lakeville, Sun ThisWeek, 6-24-16 Item No, a CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES May 24, 2016 1. Chair Starfield called the meeting to order at 4:35 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Starfield, Longie, Rajavoud, Smith, Collman, Scherer, Vlasak, Emond, Ex -officio members: Mayor Little, City Administrator Miller Members Absent: Comms. Matasosky, Gillen Ex -officio members: Chamber President Roche Others Present: David Olson, Community :& Economic Development Director; Rick Howden, Economic Development Specialist; Ken Kappelmann, Hearthside Food Solutions; Eric Zimmerman, Hearthside Food Solutions. 2. Approval of March 22, 2016 meeting minutes Comms. Scherer/Emond moved to approve the minutes of the March 22, 2016 meeting as presented. Motion carried-unanim©usly. _ 3. Review of Minnesota Investment Fund Application for Hearthside Food Solutions Mr. Olson introduced Ken Kappelmann, Plant Manager and Eric Zimmerman, Engineering Manager, both'of Hearthside f=ood Solutions.` Mr. Kappelmann described Hearthside's background and current operations. He then proceeded to describe the project background and the investment needed to expand and keep operations continuing at one of their facilities in Lakeville. Mr. Olson described the partnership with the Minnesota Department of Employment and Economic Development (DEED) and Greater MSP and how the Minnesota Investment Fund (MIF) is the program most applicable to this project. Mr. Olson then described the next step, which will be a Public Hearing to authorize the submittal of a MIF application which is planned for a June 6th Housing and Redevelopment Authority (HRA) meeting. A question was raised regarding the proposed wages of the new jobs to be created and the City of Lakeville's Business Subsidy Policy. Mr. Olson stated that the City's policy is based off of the minimum wage levels required by DEED and that they look at both wage and benefit levels, which Hearthside meets. Commissioners also requested that wage and benefit levels for the 99 jobs to be retained also be collected prior to the HRA's consideration. Comms. Smith/Emond moved to recommend the HRA authorize submittal of a Minnesota Investment Fund application on behalf of Hearthside Food Solutions, LLC. Motion carried unanimously. 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 Mr. Olson reviewed the Strategic Priorities for 2015 and the 2015 Work Program. 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. Additionally Mr. Olson mentioned that 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. 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. 5. Director's Report Mr. Olson reviewed the Director's Report including the latest building permit report. On May 10th, the Dakota County Board of Commissioners approved the City recommended concept for a backage road-poncept for the commercial area along Co. Rd. 50 between Ipava Avenue and Dodd Blvd. The backage'rgad concept included in the C-1 concept was the preferred design by ell -of the existing businesses. 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%pool in the far northeast comer of Spirit of Brandjten Farm near -Co. Rd. 46 and Diamond Path. 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. 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 2"d 6. Adjourn Meeting adjourned at 5:38 p.m. Respectfully submitted by Rick Howden, Economic Development Specialist I,= Noe -'s 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: July 15, 2016 Subject: Proposal for Preparation of the 2017-19 Strategic Plan for Economic Development The City's current three year Strategic Plan for Economic Development runs through the end of 2016. It is anticipated that next three year plan would be prepared in the second half of this year. For the past three strategic plans over the last ten years, the City has brought in an outside facilitator to assist in the process. It is recommended that the City retain Craig Rapp with Craig Rapp LLC to facilitate the process for the next three year plan. Mr. Rapp facilitated the Envision Lakeville process in 2013 and subsequently facilitated the process later that year for the development of the current 2014-16 Strategic Plan for Economic Development. Mr. Rapp is currently facilitating a strategic economic development 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 engagements over the summer months and completing the Strategic Planning Process for the CDA in September or October. Some of the information gathered during the CDA Strategic Planning Process may be useful in the City's economic development strategic planning process. Mr. Rapp has submitted a proposal to facilitate the next strategic planning for economic development process for Lakeville. The proposed project approach is similar to the last plan he assisted the City with. The process includes a questionnaire -SWOT analysis followed by two 3-4 hour Strategy Sessions with the EDC and the preparation of a summary report. It is anticipated that the Strategy Sessions would be held in September and October. The goal is to complete this process by the end of November. Mr. Rapp is proposing a fee of $5,450 which includes all incidental expenses. This fee is comparable to the fee he charged in 2013 and was included in this year's budget. Recommended Action: Staff recommends approval of the proposal from Craig Rapp LLC to complete the 2017-19 City of Lakeville Strategic Plan for Economic Development. CRAIGRAPP Envisioning the possible. Making it achievable. June 28, 2o16 David Olson Community & Economic Development Director City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55391 RE: Proposal to conduct strategic planning Dear Dave, Based upon our recent conversation regarding your desire to hold a strategic planning session with the Lakeville Economic Development Commission (EDC), I have prepared this proposal for your consideration. The proposal specifically addresses the following needs identified during our discussion: • Work with the Economic Development Commission and staff to update the economic development strategic plan for the City of Lakeville. • Establish strategic priorities for the next 3 years, as well as key outcomes, performance indicators and targeted actions. This process will relate to, and be informed by other strategic plans of the City, including the Envision Lakeville plan. Thank you for this opportunity to assist the Lakeville EDC with this important process. Craig R. Rapp President 4o East Chicago Avenue #340, Chicago, IL 6o611 800-55o-o6g2 • www.craigrapp.com City of Lakeville Economic Development Commission Strategic Planning Proposal Project Approach I. Activity #1 - Questionnaire- SWOT analysis. In order to understand the internal and external conditions that impact the EDC's operating environment, a SWOT (strengths, weaknesses, opportunities and threats) analysis will be initiated via questionnaire. The Commission and key staff will be asked to provide their opinions about the strengths, weaknesses, opportunities and threats facing the EDC, as well as identifying key strategic issues. The questionnaire will be summarized, and will be used at the first facilitated session to determine strategic challenges. a. Prepare and distribute questionnaire b. Review and summarize questionnaire responses Activity #z –Strategy Session—Review environment, identify challenges, priorities— 3-4 hrs. A facilitated meeting with the EDC and staff will be held to establish priorities and desired outcomes. Based upon the results of the SWOT questionnaire described above, the Commission and key staff will examine the operating environment, identify challenges facing the community, establish strategic priorities, and develop a set of desired outcomes. a. Prepare session materials b. Facilitate session -operating environment review, identification of challenges, priorities, and desired outcomes c. Summarize meeting III. Session #i - Strategy Session—Establish performance indicators, targets, actions -3-4 hrs. This session will be dedicated to establishing performance indicators and targets, and strategic initiatives. The group will continue the efforts begun in Session #1. Primary activities will include: finalization of performance targets and key initiatives- including follow-up actions and accountabilities to be developed by staff. a. Prepare session materials b. Facilitate session- performance indicators, targets, initiatives c. Summarize meeting IV. Summary Report. A report, summarizing the process will be prepared and submitted to the EDC. a. Prepare summary report b. Submit report to City, EDC 2 City of Lakeville Economic Development Commission Strategic Planning Proposal Proposed Fee The fee for the proposed project is $5,450.00, which includes all incidental expenses. k,ubmitted, i-ai M4 Craig R. Rapp President Approved: City of Lakeville CONSULTANT QUALIFICATIONS Craig Rapp, President- Craig Rapp, LLC Craig Rapp is a nationally recognized speaker, trainer and consultant. His background includes over 35 years experience as a senior executive in both the public and private sectors. Prior to starting his own firm, he was the Director of Consulting for the International City -County Management Association, City Manager in three Minnesota cities, Director of Community Development for the Metropolitan Council, and Vice President of a local government consulting firm. His specific areas of expertise are organizational improvement, strategic planning, and leadership development. He has a master's degree in public administration, a bachelor's degree in urban studies, and has completed the Senior Executive Institute at the University of Virginia. 3 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: July 15, 2016 Subject: Preview of Proposed Zoning Ordinance Amendments for Multi -family Residential Development Attached is information provided to the Planning Commission regarding multiple family development performance standards which will be discussed at a work session on July 21. The 2014-2016 Strategic Plan for Economic Development identifies "High Density Housing" as a Strategic Priority. The attached information provides background as well as potential flexibilities the City may consider providing in regard to density, building height, and off-street parking requirements within the framework of a Planned Unit Development (PUD). Memorandum item No. wor ks�.�l�� City of Lakeville Planning Department To: Planning Commission From: Daryl Morey, Planning Director Date: July ZS, 2016 Subject: July 21, 2026 Planning Commission Work Session Multiple Family Development Performance Standards Background At their March 28 and April 22, 2026 work sessions, the City Council discussed multiple family development opportunities and performance standards given the high number of recent inquiries to City staff regarding possible multiple family development projects. At the work sessions, the City Council discussed the limited amount of land in the City guided and zoned for higher density residential, as well as certain performance standards such as: minimum lot area (i.e. density), building height, and off-street parking. One of the proposed multiple family developments, the Lakeville Pointe 49 -unit apartment building by Ron Clark Construction, received preliminary plat approval at the June 20, 2026 City Council meeting. An outstanding issue of the Lakeville Pointe preliminary plat is the City's off-street parking requirements, specifically, the number of parking spaces required and the parking stall and drive aisle dimensions for the underground parking spaces. Ron Clark Construction is now preparing final plat plans and these issues will need to be addressed. I have attached the following information as background for this discussion. Daniel Licht of TPC will lead the discussion of this item at Thursday night's work session. Exhibits • March 28 and April 22, 2026 City Council work session minutes • May 3, 2026 and January 22, 2022 TPC memos (worolIG:Daryl Morey/Plann IngCommission: WorksessionMemo-MultipleFamily) CITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES April 11, 2016 Mayor Little called the meeting to order at 7:00 p.m. in the City Hall Marion Conference Room. Members Present: Mayor Little, Council Members Anderson, Davis, LaBeau and Swecker Staff present: Justin Miller, City Administrator; Dave Olson, Community and Economic Development Director; Daryl Morey, Planning Director, Judi Hawkins, Deputy City Clerk 2. Citizen Comments: None 3. Discussion Item: a. Transportation Corridors/Stmtegic High Density Housing Options Daryl Morey provided a brief summary of discussions that had taken place at the March 28, 2016 City Council Work Session. In response to inquiries fi-om the development community staff brought the topic of higher density housing to the City Council to determine their willingness to look at other options to address the demand. Staff believes the following four options exist: • Rezoning specific properties to PUD on a case by case basis. • Rezoning properties into either RH 1 or RH2, following current zoning performance standards. • Amending the Zoning Ordinance to allow multi -family housing by Conditional Use Permit (CUP) in the commercial zoning districts. This option reflects the recommendation of the EDC Strategic Plan to address the need for additional workforce housing. • Continue to use current zoning standards with no changes. Council expressed a willingness to consider additional options, particularly rezoning to PUD on a case by case basis. Planning consultant Dan Licht provided further information in a memo dated April 8, 2016. The City's current 2008 Comprehensive Plan designates certain areas for higher density, mainly along major transportation corridors. The Comp Plan is scheduled to be updated in 2018 but the process will begin in 2017 with public input. Zoning districts that allow multi- family housing with density higher than townhomes are RH1, R112 and OR (office -residential) by CUP. Allowing higher density by rezoning to PUD has previously been utilized in Spirit of Brandijen Farm and Mattamy's Avonlea PUD located near the park and ride on Cedar Avenue and 17§0 Street. Mr. Licht's memo did not suggest an ordinance change but rather addressing requirements as part of a PUD process. Standards to consider could include building height and parking requirements. Staff recommends Council consider looking at projects on a case by case basis by establishing a PUD district and basing performance standards on the RHI or RH2 districts. At Council's direction staff will review this with the Planning Commission in a work session. Dave Olson stated that the EDC's 20142016 Strategic Plan for Economic Development identified high density housing as a strategic priority. In addition, the Planning Commission has indicated a willingness to consider options to address this growing housing demand. City Council Work Session April 11, 2016 Page -2 - Mayor Little clarified that building height and parking requirements would be determined on a case by case basis only if the proposal did not meet current ordinance standards. Swecker asked for examples of high density use besides Spirit of Brandtjen Farm and Avonlea. Staff referred to the market rate apartments on 35W and 185th Street and several senior housing projects in the downtown area which were developed as part of a CUP district. Bob Erickson distributed copies of the 2008 Comprehensive Land Use Plan to Council Members and others in attendance. Mr. Erickson stated that he has participated in three public forums regarding the issue. During the visioning process Lakeville residents expressed concerns about high density housing. The limited number of units in the community was by design. The CDA Maxfield Study recommends 3,000 units by 2030, which could be low based on available desirable acreage. Residents expect high standards in multi -family housing. Erickson believes it is time to consider high density housing but is concerned about using CUPS on commercially zoned property. In addition to the EDC's list of 12 properties he believes several other properties in close proximity to transit such as Cedar/Dodd intersection, or by the park and ride on 35W and CSAH 50 could be rezoned as part of the Comp Plan update. He suggested updating the high and medium-high density portion of the Comp Plan out of sequence to provide the community an opportunity to comment. He believes CUPs on commercial property would result in inconsistent standards, values and rents; good projects with good management will result in a safe and secure Lakeville. The multi -family housing discussion should include market rate and subsidized units as well as high density scattered site housing. Anderson asked what it would mean to the Comp Plan update if the high density housing portion was taken out of sequence, as suggested by Mr. Erickson. Mr. Miller stated that it would take time to gather community input, hold public meetings at the Planning Commission and update the Zoning Code. Mr. Morey stated that the process of updating the Comprehensive Plan needs to be done properly and other elements also need to be taken into account. Jim McCarty, 17477 Goodland Path, is concerned with the process and concurs with Mr. Erickson. He believes that input from eight developers is being given more consideration than that of the 60,000 residents who have not been made aware of potential changes or development. He would not be opposed to a CDA project in the Cedar/Dodd area. Paul Johnson, a St. Paul resident, is co-owner along with the State Bank of Faribault of the 15.5 acres at the Cedar and Dodd intersection. A recent evaluation of their property by Maxfield Research concluded that the highest and best use of the property is for multi -family housing because 1) there is a high demand and a limited supply of that type of housing in Lakeville; and 2) their property is qualified to meet the need due to be proximity of private and public transportation which would provide many opportunities for residents. Gary Gustafson, Fortune Realty, has a listing for 35 acres of land north of Target at 185* Street. This is a triangular shaped parcel bordered by railroad tracks and 135W. The property was rezoned from Office to Commercial in 2008 but has been difficult to develop due to wetland and topography; they believe multi -family housing is the best use. They have received a letter of intent from a developer who wishes to build 100 townhomes and high density apartments. City Council Work Session April ll, 2016 Page -3 - Tom Gump, representing a group of developers from out of state, agrees that the time is right for development of some kind of multi -family product. Their group is looking at sites where three- story products would be appropriate. John Carlander, president of the State Bank of Fanbault, believes the apartment concept being proposed by Mr. Johnson is a good product and would be an asset to the community. Mr. McCarty believes that homes should be built on the City's single family lots first. Little stated that Lakeville is the number one community in the state for single-family home building. Council Member Davis believes that altering the Comp Plan process would create additional work for Council and staff. There are unique sites where opportunities exist for high density residential and after more consideration believes that a PUD on a case by case basis is the best option. As sites are developed performance standards can be adjusted if appropriate. Council Member Anderson expressed his appreciation of the input from those in attendance. He believes in the values of the Comp Plan but also the need to respond to a changing world. Using the PUD approach and looking at situations case by case based on current standards, would provide the opportunity for flexibility. He supports stars recommendation. Council Member Swecker agrees with Davis and Anderson and added that the 2030 Land Use Plan designates some areas for higher density and life -cycle housing. She believes that using the PUD method would be an appropriate way to set performance standards. She supports higher density in commercial areas and sees the need to keep up with the market. Mayor Little stressed the importance of choosing words with positive implications. "Multi- family" can mean apartments, condos, townhomes, and senior housing. More variety in housing options will make it possible for people who cannot afford or don't choose to live in expensive homes to be members of the community. This could mean young families who wish to live here or seniors who want to live independently. The Mayor also supports staffs recommendation. Council Member LaBeau also believes that young families as well as those who want a turn -key living situation need to be given the opportunity to live in the community. Building height needs to be determined by the topography and how it would impact the surrounding area. Products need to be of a good quality in order to maintain the community's value. Council Member Swecker stated that transition area between commercial properties and varying housing densities is also very important. Mr. Erickson added that using the CUP process will require modification of the Comprehensive Plan. Current high-density zoned properties will need to be added to the list of 12 properties and will exceed the community's expectations and Comp Plan. Staff will be setting standards on the properties as they are considered. He asked for clarification on staff s recommendation to defer discussions regarding changes to the Land Use Plan until the 2018 Comp Plan update to insure community engagement. He stated that ISD 194 is basing a long-range facility plan on the Comp Plan, which could change with additional high density housing. City Council Work Session Apri111, 2016 Page -4 - Mr. Morey stated that staff's recommendation is that no City-wide changes be made to the Comp Plan until the update process has begun. Mr. Licht's memo recommends limiting PVDs as discussed to the 12 sites recommended or proposed by the EDC based on demand. Mr. Miller added that with the PUD process since there are no specific standards set in the ordinance, the Council would have more discretion and flexibility on what to allow in each proposed project. Dave Olson pointed out that the goal of the EDC was to identify 12 scattered sites for multi - f anily housing development; however, sites were not specifically recommended by the EDC. 4. Adjourn The meeting adjourned at 8:05 p.m. Respectfully submitted, J awkins, Deputy City Clerk 4----- 44-1� Matt L ttle, Ma CITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES March 28, 2016 Mayor Little called the meeting to order at 6:00 p.m. in the City Hall Marion Conference Room. Members Present: Mayor Little, Council Members LaBeau, Davis, and Anderson Absent: Council Member Swecker Staff present: Justin Miller, City Administrator, Allyn Kuennen, Assistant City Administrator; Dave Olson, Community and Economic Development Director, Chris Petree, Public Works Director; John Hennen, Parks and Recreation Director; Zach Johnson, City Engineer, Jerilyn Erickson, Finance Director; Judi Hawkins, Deputy City Clerk 2. Citizen Comments: None 3. Discussion Items: a. Transportation Corridors J Strategic Density Housing Options Daryl Morey summarized the agenda item and stated that numerous private developers have contacted staff in the past several months with inquiries about constructing multi -family residential projects in Lakeville in 2016 and 2017. Projects are being proposed for attached townhomes, market rate apartments, senior housing and workforce housing; however, there is very little property with City utility services that is zoned or guided for multi -family residential housing. An update of the City's Comprehensive Plan will begin in 2017 and could include changes to land use and zoning which will take effect in 2018. The Economic Development Commission's 2014-16 Strategic Plan also identified the development of high density housing as a Strategic Priority particularly along the BRT corridors on Cedar Avenue and I-35. The EDC's Strategic Plan initiatives include identifying up to 12 sites within the city to be rezoned for higher density housing and possibly allowing higher density housing in commercial zoning districts by Conditional Use Permit. Housing with services such as senior housing, memory care, etc. are currently allowed in commercial zoning districts. Maxfield Research conducted a housing needs assessment for Dakota County CDA and identified the need in Lakeville for up to 3,000 rental units for all income levels by 2030. Properties that have been identified are predominately zoned commercial. Staff presented options for Council to consider for how potential multi -family housing sites along the two main transit corridors could be developed, if Council desired. Properties could be rezoned on a case to case basis to Planned Unit Development (PUD) while working with City Council Work Session March 28, 2016 Page -2 - developers to identify some development standards; properties could be rezoned to either RM (medium density) or RH (multi -family) and be subject to established standards for density, building height, setbacks, etc.; or the zoning ordinance could be amended to allow multi -family housing by CUP in commercial zoning districts. Mayor Little asked staff which approach might be best if Council decided to proceed. Dave Olson stated that mixed use in commercial areas is becoming common in metro communities. The EDC would like to create a CUP category in the commercial zones, such as the downtown central business district which has some areas that could be zoned for high density. Lakeville's current units per acre and building height standards are low compared to other cities. Developers will also want to discuss those allowances as part of possible ordinance amendments. Gary Gustafson of Fortune Realty is interested in developing 35 acres which are currently zoned commercial just north of the Target store on 185`s St. for townhomes and multi -family. Bruce Rydeen agreed that some of the properties that are currently zoned commercial might be put to better use with high density housing. Mr. Gustafson stated that Lakeville's fees are also prohibitive to developers. Council Member LaBeau commented that building height restrictions also create challenges for developing higher density housing. Morey stated that a PUD would allow some flexibility in the ordinance. Mayor Little asked if allowing higher density housing near the industrial areas had been considered. Mr. Morey stated that residential and industrial uses do not mix well due to heavy truck traffic and possible hazardous materials. Council Member Anderson stated that infrastructure and performance standards, as well as market demand also need to be considered for conditional use permits. Mr. Morey stated that if properties are considered on a case by case basis, the PUD would be a more appropriate tool. Davis believes a PUD on a case by case basis would be best but is concerned about possible added cost for additional work that would be needed for approval In addition, Davis would like to we performance standards developed so that developers know what to expect when going into a project. Mr. Morey stated that staff would spend more time reviewing each project individually. Mayor Little suggested beginning with a PUD on a case by case basis as a start, then establish standards later based on experience. Lakeville has a shortage of housing inventory and needs more variety in stock. Council Member LaBeau stated that surrounding communities are saturated with rental units. Council Member Anderson suggested these questions be discussed at a future work session after staff has researched and drafted possible performance standards. City Council Work Session March 28 20I6 Page .3 - Mayor Little prefers to resolve some issues at this meeting in order to provide further direction for staff. After some discussion there was consensus among the Council to accelerate the process by holding a special meeting on April 11, 2016 to discuss density, building height, parking ratios, pros and cons and criteria for PUD vs. CUP, fees, and any other issues associated with developing multi -family housing in Lakeville. b. Vermillion Watershed Project City Engineer Zach Johnson provided an overview of the proposed South Creek Restoration Project. The water quality of South Creek and the Vermillion River is being impaired due to failures of the banks of a storm water basin located southwest of the Holyoke Avenue/210' Street intersection. Staff is proposing a feasibility study to evaluate options to reduce erosion and sedimentation and increase oxygen levels in order to improve water quality and wildlife habitat. The feasibility study would also address what construction option would be most cost effective. Wenck Associates has submitted a proposal for services to be completed in three phases. Staff will present the results of the first phase to Council for further direction. The Vermillion River Watershed joint Powers Organization (VRWJPO) will fund up to $65,000 for a feasibility study and preliminary design. Council directed staff to proceed with the feasibility study for South Creek water improvements. C. Water Meter Policy Chris Petree stated that staff is proposing to establish more specific ordinance language and a policy for dealing with various water meter issues, especially the meter change -out program. The proposed policy details water meter installation, maintenance, reading and testing and outlines responsibilities in order to establish consistent procedures. Council directed staff to provide a final draft to Council for consideration at a regular meeting. d. 2017 Holyoke Avenue Street Project Update Operations and Maintenance Engineer Monica Heil provided a brief summary of the feedback received from downtown Lakeville property and business owners regarding plans for the 2017 Holyoke Avenue Improvement Project. Staff received input from the DLBA at meetings in August, October and January. The project is currently budgeted as a $1.1M mill and overlay between Heritage Drive and County Road 70 in 2017 and includes some spot sidewalk replacement. The DLBA was asked if there was interest in expanding the project to include streetscape and sidewalk upgrades. Options and assessment estimates presented to the DLBA included: 1) maintain the current project scope as budgeted ($51/front foot); 2) replace all the existing concrete sidewalks with plain concrete, with no trees ($90/front foot); TPC3601 Thurston Avenue N. Suite 100 Anoka, MN 55303 Phone: 763.231.5840 Facsimile: 763.42 7.0520 TPC@DP1anningCo.com MEMORANDUM TO: Daryl Morey FROM: D. Daniel Licht, AICP DATE: 3 May 2016 RE: Lakeville — Zoning Ordinance; Multiple Family Development TPC FILE: 135.01 BACKGROUND The City Council at work sessions on 28 March 2016 and 11 April 2016 discussed possible actions that could be taken within the City's land use controls in response to increased demand for multiple family development projects. This effort is being initiated in response to contacts made by several developers interested in possible multiple family development projects and in consideration of the Economic Development Commission's 2014-2016 Strategic Plan for Economic Development that identified high density housing as a strategic priority. The Planning Commission has not reviewed or provided comment on this topic to date, but has in response to other residential development issues recently indicated openness to considering options to address the increased demand for higher density housing in the City. The City Council directed that the City will work with developers on multiple family projects proposed on parcels within existing commercial districts though establishment of a PUD District using the performance standards of the RH-2 District as a basis. Flexibility from performance standards for lot area per dwelling unit (density), building height, and off-street parking requirements for such developments was specifically noted as an opportunity to increase density in areas where intensive land uses are already guided by the Comprehensive Plan on the basis of land use and/or arterial roadway or transit oriented corridors. The purpose of this memorandum is to outline potential flexibilities the City may consider providing with regards to density, building height, and off-street parking requirements within the framework of a PUD District. ANALYSIS Minimum Lot Area. The Zoning Ordinance requires multiple family development to provide a minimum of 2,500 square feet of lot area per dwelling unit, which converted to net density is equal to 17.4 dwelling units per acre. A survey of communities with similar development characteristics to Lakeville was completed regarding minimum lot area requirements for multiple family uses: city Lot Area/DU Note Apple Valley M-6 and M-7: 1,089sf./du Bloomington RM12: 3,630sf./du. RM24: 1,800sf./du. 500sf. credit for underground parking. Burnsville R -3B: 3,OOOsf./du MIX: 2,000sf./du. 300sf. credit for underground parking. Woodbury E: 2,300sf./du. 1Br: 2,925sf./du. 2Br: 3,600sf./du. 3Br: 4,275sf./du 18 du./ac. maximum Lakeville 2,500sf./du Eden Prairie 2,500sf./du. Edina 2,500sf./du. Maple Grove 2,500sf./du. Plymouth 2,178sf./du. Eagan 2,750sf.du. The minimum lot area per unit requirement performance standard in Lakeville applies regardless of the Zoning District, which is one means to distinguish between different intensities of the same type of land use. Lakeville may allow for higher densities within the 1-35 and Cedar Avenue corridors (or other areas based on specific location factors) through a PUD District as being consistent with the City's overall development goals and those specific to multiple family housing. The following lot area per dwelling unit credits are recommended to be incorporated for developments considered under a PUD District that would allow for a maximum development density of 24 dwelling units per acre: 200 square foot credit for an average of 2.0 bedrooms or less per dwelling unit within the overall development. 300 square foot credit for underground parking based on the dimensions of a required parking stall not required to be provided for at grade. 200 square foot credit for sites within 2,640 feet of a transit station and/or park and ride facility with available pedestrian ways based on walkable distance. 0) Building Height. Developers have indicated to City staff that building height is a crucial element in the financial feasibility of multiple family developments in that it is more cost effective to increase the size of a proposed building vertically than horizontally due to the higher costs of expanding the building foundation. Multiple family buildings within the RH-1 and 0-11 Districts are allowed to be up to three stories or 35 feet in height. Multiple family buildings within the RH-2 District are allowed to be up to four stories or 45 feet in height. The Zoning Ordinance also provides for a conditional use permit process whereby the height of a building within any zoning district can be increased above the district limit by increasing the front and side yard setbacks five feet for every additional story above the district limit. The existing conditional use permit for height increases above the district limit allows developers flexibility to propose additional building height. Building heights greater than allowed in the 111-1-1, 111-1-2, or O -R District could also be established by a PUD District for a specific project, which allows the City greater oversight to ensure that the additional building height is appropriate for the site and compatible with surrounding land uses. City staff believes that the current Zoning Ordinance standards allows for appropriate building heights and flexibility either through a conditional use permit or PUD District to accommodate proposals for increased building heights where appropriate. Off -Street Parking. The Zoning Ordinance requires 2.5 off-street parking stalls per multiple family dwelling unit to accommodate both the residents as well as guest parking. A survey of communities with similar development characteristics to Lakeville was completed regarding off- street parking requirements for multiple family uses: City Parking Requirement Note Apple Valley 1.5 stalls/du. 1 stall/du. must be enclosed Burnsville 1.5 stalls/efficiency-1br. du. 2.25 stalls/2br.+ du. 1 stall must be enclosed Add 0.5 stalls/du guest parking Bloomington 1.8 stalls/1br. du 2.2 stalls/2br. du 2.6 stalls/3br.+ du 1 stall/du. must be enclosed 1 stall/100sf. of party room area Eagan 2.0 stalls/du. 1 stall/du. must be underground Eden Prairie 2.0 stalls/du. 1 stall/du. must be enclosed Edina 2.0 stalls/du Minimum of 1.25 stalls must be enclosed. Maple Grove 2.0 stalls/du. 1 stall/du. must be underground Plymouth 2.0 stalls/du. 1 stall/du. must be enclosed Woodbury 2.5 stalls/du. 2.0 stalls/du if one underground Lakeville 2.5 stalls/du. The Institute of Transportation Engineer's 4th Edition Parking Generation Study includes analysis of off-street parking demand for multiple family uses based on the type of building and either in an urban or suburban location. Most applicable to the potential development scenarios in 3 Lakeville are the Low/Mid-Rise Apartment having four or fewer floors being distinguished from a High Rise Apartment, and being located in a suburban versus central city area. ITE Parking Generation 4t Edition Low/Mid-Rise Apartment Peak Period Range 85th Percentile Average Peak Demand Suburban Midnight- 0.59-1.94 1.94 vehicles/du 1.23 vehicles/du S:OOAM vehicles/du Urban 10:OOPM- 0.66-2.50 1.61 vehicles/du 1.20 vehicles/du S:OOAM vehicles/du The off-street parking requirements for multiple family uses in Lakeville and the surveyed communities other than Bloomington and Burnsville do not account for variations in the number of bedrooms within each dwelling unit, which may be expected to have a corresponding effect on parking demand. Institute of Transportation Engineers included reference to a subset of data regarding bedroom data acknowledging the need for further studies, but indicating the following: ■ 1.5 bedrooms/dwelling unit peak parking demand equals 92 percent of the average - peak parking demand for all of the study sites reporting bedrooms per unit data. ■ 1.5 — 2.0 bedrooms / dwelling unit equals 98 percent of the average peak parking demand for all of the study sites reporting bedrooms per unit data. ■ 2.0 bedrooms / dwelling unit or more equals 113 percent of the average peak parking demand for all of the study sites reporting bedrooms per unit data. Based on the ITE study data and survey of surrounding communities, our office recommends specifying off-street parking of 2.0 stalls/dwelling unit for a multiple family land use within 1-35 or Cedar corridors having 2.0 bedrooms/dwelling unit or less with one stall/dwelling unit required to be enclosed under the principal building (exempting housing meeting regional affordability standards). A developer may also provide a detailed parking study for a project indicating peak parking demand for that use based on the specific number of bedrooms per dwelling unit that may provide more information than the current level of the ITE analysis to support a reduction in the number of required parking stalls within a PUD District. CONCLUSION The information outlined herein is provided for continued discussion with City staff. 4 TPC3e01 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231.5840 Facsimile: 783.4,27.0520 TPC@PlannlngCo..00m MEMORANDUM TO: Daryl Morey FROM: Daniel Licht, AICP DATE: 12 January 2011 RE: Lakeville - Zoning Ordinance; Structured Parking TPC FILE: 135.01 -10.03 BACKGROUND City staff has requested a review of the parking stall and drive aisle design standards required by the Zoning Ordinance as applied to structured parking (underground and ramp). This issue was first raised with the construction of the Metro Transit park and ride ramp adjacent to 1-35 at CSAH 50 and has come into question with the preliminary architectural plans for two senior housing multiple family building projects proposed by separate developers. ANALYSIS Design Criteria.- The dimensions for parking areas are defined by Transportation Engineers by modules consisting of the width and depth of the parking stalls and accessing drive aisle. The most efficient layout is a complete module where one access aisle serves a row of parking on each side. Definition of specific parking dimensions required by the Zoning Ordinance depends upon a number of factors that affect the function of the parking area Including driver experience, vehicle size, and vehicle turning movements as well as parking generation of the specific land use to which the parking is accessory. The greater the demand for parking spaces (high turnover), larger dimensions are commonly utilized to better accommodate frequent movements of both vehicles (turning movements and opening doors) and pedestrians. Surface parking must also anticipate.some reduction in parking area due to snow storage even though this4*..mquIred -to be separated from the parking area. Retail uses with high parking generation and high turnover throughout the hours of business require the largest dimension drive aisles and parking stalls to accommodate the greatest range of vehicle sizes, facilitate traffic movement within the parking area, and provide space for pedestrians to move between the building and parking with traffic. Conversely, a park and ride facility will experience one way peak vehicle and pedestrian traffic in the moming and afternoon at rush hour with minimal turnover throughout the rest of the day. Structured parking for multiple family housing or office uses would also experience more limited and time speck peak periods for parking generation than retail uses. Senior housing has an even lower parking generation factor than other residential uses minimizing the potential for conflict between vehicle traffic and pedestrians within the parking structure making possible reduced design dimensions. Vehicle Dimensions. Vehicles likely to be parked in Lakeville include a wide variety of sizes including larger cars and light trucks, midsize and compact size cars. Most cars within the American fleet tend to be D or E class cars or light trucks. Below are listed the dimensions of several common vehicles for reference: Vehicle Leqgh Width Ford Fiesta(B-Class) 13.3% 5.6ft. Ford Focus(C-Class) 14.6f . 5.7ft. Ford Fusion(D-Class 15.9ft. 6.Oft. Ford Taurus(E-Class) 16.911, 6.4ft. Honda Odyssey Minivan 16.9ft. 6.6ft. Ford Escape Sm. SU 14.6ft. 5.91t. Ford Explorer Midsize SU 16.4ft. 6.6ft. Ford Expedition EL (Large SUV 18.4ft, 6.6ft. Ford F-1 50 SuperCab/Short Box(Pickup) 19.3ft. 6.6ft. Ford F-250 Super Duty Crew Cab 20.1ft. 6.7ft. Existing Requirements. Section 11-19-7.1 of the Zoning Ordinance establishes required dimensions for all off-street parking facilities, including both surface and structured parking. The requirement in Section 11-19-7.1.2 of the Zoning Ordinance for a 90 degree parking stall is 20 feet in length by 9 feet in width accessed by a 24 foot drive aisle. These dimensions may be varied for angled parking based on the table in Section 11-19-7.1.1 of the Zoning Ordinance. The dimensions required by the Zoning Ordinance accommodate almost all vehicle sizes including large cars and light trucks as well as facilitate traffic movement for high parking generation land uses such as retail stores. ITE Recommendations. The Institute of Transportation Engineers Traffic Engineering Handbook 5t' Edition recommends a minimum practical module dimension of 61 feet based on 17.5 foot deep stalls and a two-way, 26 foot wide drive aisle. The module required by Section 11-19-7.1.2 of the Zoning Ordinance is 64 feet. Based on these recommendations, it would be appropriate to consider a reduced module requirement for structured parking in cases where low traffic and parking demand is known to be generated such as the case with park and ride facilities, employee only parking and/or senior housing. In that a drive aisle width of 25 feet and stall width of nine feet is adequate for vehicle access, we would recommend that the minimum stall depth be 2 established at 18 feet as this Is sufficient to accommodate parking of all but large trucks and/or SUVs. Therefore, the minimum necessary module that would be required would be 61 feet. Amendment. The following language is proposed to modify the parking area dimension requirements for structured parking. It is recommended that this option be limited only to public park and ride facilities, multiple family apartments and/or senior housing. Consideration could be given to allowing modifications for structured parking accessory to office uses but to ensure low parking generation; the area would need to be restricted to employee parking, which may present long-term enforceability issues for the City. 11-19-7.I.3 Within Structures: a. The off street parking requirements may be furnished by providing a space so designed within the principal building or detached accessory structure. b. The design standards required by Section 11-19-7.1.1 of this Title may be modified by approval of a conditional use hermit for nuhl_in nark mnA riA= resident or employee parking for senior housing: 011 bc. Unless alternative provisions in compliance with this chapter and title are made, no building permit shall be issued to convert said parking structure into a dwelling unit or living area or other activity. CONCLUSION The concept of allowing a smaller design standard for structured parking accessory to uses with low turnover may be warranted based on recommendations by the Institute of Traffic Engineers. The information outlined herein is provided for additional discussion by City staff and possible review by the Planning Commission and City Council at a future date. Memorandum Item No. S 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: July 20, 2016 Subject: July Director's Report The following is the Director's Report for July, 2016. Building Permit Report The City has issued building permits with a total valuation of $98,648,806 through June. This compares to a total valuation of $97,509,626 for building permits issued through June of 2015. The City issued commercial and industrial permits with a total valuation of $10,616,000 through June compared to a total valuation of $26,309,000 during the same period in 2015. The City has also issued permits for 182 single family homes through June with a total valuation of $56,229,000. This compares to 171 single family home permits through June of 2015 with a total valuation of $54,520,000. The City also issued permits for 39 townhome units through June with a total valuation of $8,693,000. This compares to 16 townhome permits issued through June of 2015 with a total valuation of $3,810,000. The City also issued a permit for a 62 unit affordable senior housing project with a value of $8,900,000 being developed by the Dakota County CDA in June. This project is located on behind the Argonne Village Shopping Center on Kenwood Trail. The City of Lakeville had the highest number of residential of permits issued in the Twin Cities for the month of June as well as Year-to-date according the Builders Association of the Twin Cities. Development Update The Planning Commission recently recommended preliminary plat approval for Kenwood Place, which will be comprised of 30 townhome lots and two commercial lots located north of 172"d Street and west of Kenwood Trail (CR 5). Candlewood Suites celebrated their grand opening with a ribbon cutting on July 19tH Candlewood Suites is a three-story, 83 -unit extended stay hotel located in the southwest quadrant of County Road 70 and Interstate 35. The City has received a preliminary plat application from Schneiderman's Furniture to develop a new 105,000 square foot two-story furniture showroom on a 5 acre site along Kenyon Avenue between Gander Mountain and Celebration Church. The project is proposed to be constructed by Opus and will be the subject of a public hearing at the Planning Commission in August. Schneiderman's will be moving from their current store location in Lakeville which they currently lease. Angry Inch Brewing, located in the former Ace Hardware building in Downtown Lakeville will hold their grand opening on Friday, July 29 at noon. They will feature seven different beers on tap and will also have growlers for sale. County Road Projects Staff will provide an update on several County Road projects currently under construction or still in the planning stages. 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After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metro- politan -area municipalities in the greater 13 -county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the landllot costs. BUSINESS New home construction accelerated sharply in June in Twin Cities Residential construction permits rise, with nearly all for single- family houses. By Jim Buchta(http://www.startribune.com/jim-buchta/10644536/) Star Tribune JUNE 29, 2016 — 10:35PM Twin Cities homebuilders are having their very best summer in at least a decade. During June, 571 permits have been issued to build 610 houses and apartments throughout the 13 -county metro area, according to data compiled by the Keystone Report for the Builders Association of the Twin Cities. Of those permits, 557 were for single-family homes, a 24 percent increase and the biggest number in recent memory. "We're definitely starting to see the low inventory of existing single-family housing impact new construction," said Meg Jaeger, president of the builders association. The industry is getting a boost from persistently low mortgage rates and a shortage of house listings that's prompting buyers who can't find a suitable existing home to build instead. And the report provides more evidence that homebuilders, who had a slow comeback from the 2008-09 recession, are now finally catching up to the apartment developers who led the housing recovery. With about 11,000 new apartments having been built over the past three years in the metro, according to Marquette Advisors, supply and demand for rental apartments has moved closer into balance. Multifamily permits, which are often volatile from month to month, plummeted in June and represented only 8 percent of all planned units. (A single permit can be issued to build more than one unit.) All of the 14 multifamily permits issued during the month were for projects with fewer than 16 units. Most of them were likely suburban townhouses, which are gaining favor with entry-level buyers and empty nesters. Mortgage rates are at a three-year low and global economic uncertainty is expected to keep increases at bay for awhile. For the week ending June 28, the average rate for a conforming 30 -year fixed-rate mortgage was 3.61 percent. Many home buyers, however, have been stymied in their attempts to take advantage of those rates. Buyers have outpaced sellers in much of the Twin Cities metro area, creating a shortage of listings. During April, for example, there weren't enough listings on the market to last even three months, prompting many frustrated buyers to visit a homebuilder to see what options are available. Homebuilders are now working overtime to find inexpensive sites where they can construct houses to meet the demand for entry-level houses, which in many areas start at $300,000. Demand has been especially strong in the first- and second -ring suburbs. Lakeville, for example, issued the most permitted units (56) followed by Plymouth (40) and Blaine (34). Woodbury and Apple Valley each issued 29 permitted units. jim.buchta@startribune.com 612-673-7376 (http://stmedia.startdbune.com/images/ows_1455674392264( JOHN BAZEMORE New home construction grew sharply this month and was dominated by single-family homes. SOUTH METRO New Hy -Vee grocery store in Lakeville will carry clothing, too Hy -Vee adds even more grab -and -go items in its new Lakeville store, as well as a fast fashion boutique. By John Ewoldt (http://www.startribune.com/john-ewoldt/10644BU/) Star Tribune JUNE 20. 2016 — 11:20AM The new Hy -Vee that opens Tuesday in Lakeville continues to raise the bar for what Twin Cities grocery shoppers can expect. The third Twin Cities' store to open, after New Hope and Oakdale opened last September, the newest store will include a fast fashion clothing department from F & F, a juice/smoothie bar and an expansion of grab -and -go foods. 'We have more of an urban feel of a farmers market at this store," said Tara Deering - Hansen, vice president of communications for Hy -Vee. The changes includes a new olive bar, the rustic "Chophouse meats" sign, the made -on- site doughnuts and bagels and a new sweet shop. But the head scratcher for some may be the F & F boutique, a 3,300 -square -feet boutique with clothes, shoes and accessories for kids, women and men. The European brand is franchised mostly in Tesco supermarkets. This is Hy-Vee's first franchise with the brand, which will be expanded in stores in Rochester, Minn., and Des Moines as well as Brooklyn Park. The sustainably -sourced clothes are priced between $8 and $45. Like most fast fashion, the line is refreshed every eight weeks. In other changes, the deli counters have been tweaked a bit. An Asian Grill allows customer to get a made-to-order meal, and the Cocina Mexicana grill, similar to Qdoba or Chipotle, is new. Grab -and -go entrees and side dishes have been expanded and moved closer to the entrance. The Lakeville store, as well as the Brooklyn Park store opening Tuesday, June 28, are the same size as ones in New Hope and Oakdale, 91,000 square feet. Other stores in the pipeline include Eagan, to open this summer, Savage in spring 2017, and then Cottage Grove, Maple Grove and Shakopee. Chief Executive Randy Edeker still plans to open four to five stores per year. "We're a little ahead of program for sales and profits so far," he said of the two Twin Cities' stores now open about nine months. "We still feel good about this market." jewoldt@startribune.com 612-673-7633 (http://stmedia.starthbune.com/images/ows_1437184361954f JERRRY HOLT. STAR TRIBUNE The Hy -Vee grocery store that opened in Oakdale last September (shown above), will be joined by a Lakeville Hy -Vee opening Tuesday... Newest store reveals Hy -Vee is also a fast - fashion retailer and fast -casual restaurateur (Photos) Jun 20, 2016, 12:21 pm CDT Hy-Vee'sgrocery stores are evolving as they roll out across the Twin Cities. Actually, it might be time to reconsider categorizing Hy -Vee as simply a grocer, because the newest location reveals the company has also become a fast -fashion retailer and fast -casual restaurateur. The Lakeville Hy -Vee store, which opens Tuesday at 16150 Pilot Knob Road, shows off how the NICK HALTER I MSPBJ West Des Moines, Iowa -based grocery chain is becoming what CEO Randy Edeker calls a lifestyle company. "If you think about how we make life easier, it's conveniences," he said. "They're obviously business opportunities, but how do you solve problems for the customers of today and adapt to their lifestyles? That's why we've been more diverse with our merchandise." That diversity was on display at a store tour Friday. Most notably, Hy -Vee unveiled its new franchise partnership with F&F, a U.K.-based fast -fashion retailer that is part of grocery giant Tesco. The 3,300 -square -foot F&F store -in -a -store is the first of many for Hy -Vee. The Rochester store and forthcoming Brooklyn Park store will also have them, as will most of the new stores planned in the Twin Cities. F&F has clothing for men, women and kids with prices raging from $8 to $50. The merchandise gets changed out every eight weeks because customers shop for groceries frequently, said James Marshall, head of marketing for F&F. "We have new (products) coming in all the time, because customers are coming visiting the store a lot more than you would in High Street," he said. "They do a weekly shop, so we have to have newness for them." Marshall said F&F will open in six Hy -Vee stores this year and has an "extensive program" that will roll out over the next five years in the Midwest. This is the chain's first store in the Midwest, Marshall said. On the other side of the store, Hy -Vee has expanded its prepared food offerings to be more attractive to families. There's a Chipotle-style burrito counter and three separate counters where meat is grilled to order for Asian dishes, salads and pastas. It also has a juice and smoothie bar, a bagel shop and a doughnut counter, where doughnuts are fried on-site. "For the first time in history, food away from home surpassed food at home," Edeker said. "That has caused us to shift. People are eating different — fast casual. If you have multiple kids, this one wants Mexican, this one doesn't, this one wants Chinese. It's a solution for the active family." In addition to New Hope and Oakdale stores that opened in September, Hy -Vee also has a store opening in Brooklyn Park next month and more in the works for Shakopee, Savage, Eagan, Maple Grove andCottage Grove. Edeker said shoppers will notice even more new features as those stores open. "In the new stores you'll see some new departments, some things we're excited about," he said. "If you look at some of the merchandising and go back to what we do, you follow the lifestyles. You look at a lot of the soap products coming in, beauty, cosmetics. You'll see us doing more of that moving forward." Business incentives slashed in state budget bill BusinessBrian Bakst - St. Paul - Jun 3, 2016 Gov. Mark Dayton wants lawmakers to reverse cutbacks to the Job Creation Fund and the Minnesota Investment Fund during a possible special session. But that demand isn't going over well. Glen Stubbe I Star Tribune via AP Two of Gov. Mark Dayton's prized business incentive programs will see steep funding cuts under a budget bill he signed this week. The Democratic governor wants lawmakers to reverse cutbacks to the Job Creation Fund and the Minnesota Investment Fund during a possible special session. But that demand isn't going over well. If nothing changes, there could be disappointment ahead for companies hoping for state subsidies. • Earlier: Dayton demands special session to sign tax bill Bob Jackson, general manager of Stern Rubber, was caught off guard by the Legislature's decision to slice more than $23 million from the fund. He scrambled to call his state contact to check on the company's application. An uptick in construction of new houses has been good for business at Stern Rubber, a half century -old company in central Minnesota. The valves and gaskets it makes for water mains are in demand and its other rubber products are, too. So the company is pressing ahead with an expansion at its plant in Aitkin and has been considering one at a second site in Staples. The Aitkin project that's due to break ground this month will add io,000 square feet and almost double the number of employees there. The Aitkin plant will be helped along by grants from the state's Job Creation Fund. The future of the Staples facility, however, is less clear without the expectation of state help. "It's pretty substantial. We were kind of, not counting on, but assumed the money is there, but now it's not," Jackson said. "So that's definitely going to play into our decision whether we move ahead this year or not." Officials at the Department of Employment and Economic Development can't comment on specific projects awaiting approval, but deputy commissioner Kevin McKinnon says the cutback will be felt. "All of those instances where we have existing agreements in place, yes will be fulfilled," McKinnon said. "Those that we have been talking to and understanding their needs and looking at long-term plans, we just won't be accepting applications for that program." Since it started in 2014, the fund has been tapped for 62 expansion projects — for corporations that are household names to smaller companies off the beaten path. The agency says the $30.5 million in state funds distributed has been matched by 20 times that in outside investment and led to more than 3,800 new jobs. Companies can qualify for grants to make facility upgrades and then get rebates when they add the promised jobs to their payrolls. The separate Minnesota Investment Fund dates back longer. It provides things including forgivable loans once applicants fulfill hiring and investment goals. It was drained of $17 million by the budget bill. Rep. Pat Garofalo, R -Farmington, said new spending in other areas of the state budget had to be offset somewhere. "I think we're better off having a favorable tax climate for all businesses as opposed to having government trying to pick winners and losers," Garofalo said. "And having direct corporate subsidies is not the best way to grow the economy." Garofalo was adamant the cuts won't be reversed this year despite Dayton's appeal for a second look. The Democratic governor signed the bill containing the reduction on Wednesday. Dayton says he had to accept the cuts to unlock spending he wanted for broadband, preschool programs and more. He says Minnesota will be at a disadvantage because other states aren't cutting back on their incentive funds. "I think they're just as valuable in good times because the competition among states for these new businesses or expanding businesses is fierce in good times and bad," Dayton said. Dayton says he wants to restore the job funds as part of the special session conversation because he's worried that it will be harder to reboot the programs if they fade now. 7/5/2016 Shakopee raises minimum wages to $19 for businesses seeking city subsidies I Star Tribune SOUTH METRO Shakopee raises minimum wages to $19 for businesses seeking city subsidies By NATALIE DAHER, STAR TRIBUNE July 03, 2016 - 7:04 PM If large businesses eyeing Shakopee want certain tax breaks, they must pay employees at least $19 per hour. The City Council voted last month to increase the minimum wage for new businesses receiving economic incentives to a rate that's twice Minnesota's new $9.5o hourly minimum for those large employers. The vote followed a public hearing on subsidizing large businesses, an ongoing topic in the city whose job growth has climbed alongside industry development in recent years. Shakopee is home to a new Amazon.com Inc. distribution center that created more than 1,000 jobs. It is also in discussions for a Hy -Vee grocery store. Candidates for the new minimum -wage requirement would exclude Amazon, said Samantha DiMaggio, the city's economic development coordinator. The target is companies with higher - wage jobs that the city hopes to attract, DiMaggio said, like a medical device company. "The City Council has asked that [the minimum -wage requirement] be updated because they don't think families can live off $14.5o an hour," the previous minimum, DiMaggio said. "They want to see higher wage jobs." This new minimum will not affect the city's existing companies — including apparel company San Mar, digital publisher Shutterfly or Emerson Process Management Rosemount — that have arrived in recent years. Amazon had some sewer fees paid by the city but did not receive a tax -increment financing package, so it doesn't fit the criteria for the minimum wage requirement. Advocates for $15 minimum wage rally in Mpls., turn in petitions In 2012, Shakopee cut its minimum -wage requirements from $19.94 to $14.5o an hour for companies seeking economic incentives. According to past reports, the reduction was propelled by the recession, although economic recovery was already underway. http://m.startribune.com/shakopee raises-mirrmum-wages-to-l9 for-businesses-seekirx,}city-subsidies/385387401/ 1/3 7/5/2016 Shakopee raises minimum wages to $19 for businesses seeking city subsidies I Star Tribune Criteria for businesses seeking tax breaks are at a city's discretion. Depending on job, land and housing availability, some cities develop specific criteria, while others don't outline requirements at all. "Each city takes a look at what makes sense at the time when they instate those policies," said Stacy Crakes, business development director at Scott County's First Stop Shop, "and I guess that's what the city decided made the most sense." In addition to minimum -wage requirements, Shakopee also sets rules for the number of jobs a company plans to create and how much a new or improved factory or office building boosts the tax base. At a public hearing on June 21, DiMaggio listed the number of jobs and minimum wages at current industries in Shakopee. For instance, Shutterfly pays about $700,000 in annual taxes and receives around $1oo,000 in local incentives, DiMaggio said. The company's goal was to employ 258 people by May and employed 18o as of January, so it will not receive further incentives this year. The new minimum -wage requirement reflects a city that's ushering in new businesses as well as looking to house more of the people who work there. "We're becoming worldwide. We compete globally now," said County Commissioner Joe Wagner. "I call it the ATM machine" of Scott County, Wagner said of Shakopee. "The amount of tax that's coming out of the Valley Green industrial park — it's staggering. It's a lot of revenue. Natalie Daher • 612-673-1775 Comments NEXT IN LOCAL New work week, new road construction projects What is open and closed on Independence Day Where to watch fireworks in the Twin Cities tonight http://m.startribune.com/shakopee-raises-minimum-wages-to-19-for-busiriesses-seekirxf-city-subsidies/365387401/ 26 Business • Education School board approves $1.6 million land sale Published July 1, 2016 at 6:41 am By Laura Adelmann Housing proposed for property After months of closed -door meetings, the public is getting its first glimpse into a major land sale of acreage owned by the Lakeville Area School District 194 for at least three decades. The Lakeville School Board on June 28 approved the sale of the 25 -acre property, located north of Lakeville South High School and across the street from Trinity Evangelical Free Church along 210th Street, for $1.6 million. The buyer, Summit Preserve LLC of Prior Lake, has developed preliminary concept plans for what District 194 Business Services Executive Director Michael Baumann described as a 49 -lot housing development. Summit Preserve President William Feldman was not at the meeting. Baumann said the property is zoned commercial (office park) and must go through city process to rezone it residential. Summit Preserve deposited $25,000 in escrow that will go toward the purchase price with closing set to occur within 180 days, according to the agreement. An unnamed third party interested in the westerly portion of the property is also mentioned in the agreement. Summit Preserve is authorized to negotiate its sale on behalf of the school district without disclosing the party's identity. Any agreement reached with a third party would have to be approved by the School Board, and under the agreement, the purchase price to Summit Preserve is to be reduced by that amount. Baumann said the district is still "locked in" to receive $1.6 million for the property. If the third party defaults or cancels the purchase agreement with the district, the sale with Summit Preserve is still to go through as planned for $1.6 million. Under the contract terms, the district will also pay for certain expenses, including a phase one environmental site assessment. Feldman is able to withdraw from the deal if he is unable to obtain financing or governmental approvals necessary for the development, the contract states. Closing is anticipated to occur within 15 days after the final plat is approved. School Board Member Bob Erickson said the sale "captured the strength of the current real estate market in Lakeville through this process" Baumann said the purchase agreement met all the objectives directed by the School Board "spot on." It Filed Under: District 194, Lakeville, land sale, Summit Preserve, William Feldman Advertising information I Contact Us I Subscribe I Jobs & Classifieds Copyright 02016 ECM Publishers, Inc. - All Rights Reserved Business PetSmart may open in Lakeville Published June 24, 2016 at 10:05 am By Laura Adelmann Business proposed to locate near Hy -Vee The new Lakeville Hy -Vee store is the first of what developers are planning to become a retail center. Construction is proposed for an 18,000- square -foot PetSmart store located at the southwest corner of 160th Street and Elmhurst Lane, just north of the Hy -Vee store that opened June 21 in the Spirit of Brandtjen Farm commercial addition. As proposed, the store would sell food and supplies as well as offer pet grooming services and training classes. They would hold limited pet adoption events, but do not plan to offer boarding or veterinary services as do some other PetSmart locations. The Lakeville Planning Commission unanimously recommended approval of the proposal at its June 16 meeting, but rejected the business' request for wall signage bigger than city code allows. PetSmart had proposed to locate over its entry a 54 -inch sign that would be 169 square feet, 69 feet over the allotted 100 -square -foot sign allowed under ordinance. The company also proposed installing three outside wall signs, but commissioners agreed with staffs recommendation to allow two signs outside walls facing a street or driveway that comply with the city's 100 -square -foot limit. Planning Commission member Karl Drotning said allowing PetSmart's requested signage would have made PetSmart's signs larger than any other in the city, including those allowed for commercial businesses located near Interstate 35. The commission also recommended approval for a free-standing sign up to 100 -feet tall near the PetSmart store, with space for signs of four tenant spaces, provided the future businesses are not allowed to build additional freestanding signs on their lots. Proposed as a planned unit development, developers have more flexibility to deviate from standards typically required by city ordinance. The Lakeville City Council is expected to consider the proposal at its July 5 meeting. Filed Under: Hy -Vee, Lakeville, Petsmart ����u_Thisw�eelc Advertising information I Contact Us I Subscribe I Jobs & Classifieds Copyright ©2016 ECM Publishers, Inc. • All Rights Reserved