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HomeMy WebLinkAbout12-01-16AGENDA Economic Development Commission Thursday, December 1, 2016- 4:30 p.m. City Hall, Marion Conference Room 1. Call to order 2. Approval of July 26 , 2016 minutes 3. Review Draft 2017 — 2019 Strategic Plan for Economic Development prepared by Craig Rapp LLC. 4. Review 2016 Community and Economic Development Department Activities (To be presented at the meeting) 5. Directors Report 6. Adjourn Attachments: • October, 2016 Building Permit Report • October, 2016 BA TC Building Activity Report • New homes are rising faster in the Twin Cities than usual, defying the seasonal slowdown, Star Tribune, October 26, 2016 • Growth tapering in Twin Cities office, industrial real estate markets, Star Tribune, October 27, 2016 • Presentation to the Lakeville City Council of the Special Service District No. 1 • Statistics on Open to Business from January 1, 2016 — September 30, 2016 • New look in the works for downtown Lakeville, Star Tribune, November 12, 2016 • Menasha Announces Consolidation Plans for Brooklyn Park, MN Plant, PRWEB, November 10, 2016 • Hy -Vee planning to building in Farmington, Sun Thisweek, August 1, 2016 CITY OF LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES July 26, 2016 1. Vice Chair Longie called the meeting to order at 4:34 p.m. in the Marion Conference Room at City Hall. Members Present: Comms. Longie, Matasosky, Smith, Gillen, Vlasak, Collman Ex -officio members: City Administrator Miller Members Absent: Comms. Starfield, Rajavouri, Scherer, Emond Ex -officio members: Mayor Little, Chamber President Roche Others Present: David Olson, Community & Economic Development Director; Rick Howden, Economic Development Specialist. 2. Approval of May 24, 2016 meeting minutes Comms. Coltman/Smith moved to approve the minutes of the May 24, 2016 meeting as presented. Motion carried unanimously. 3. Review of Proposal from Craig Rapp LLC for to assist in the preparation of the 2017 — 2019 Strategic Plan for Economic Development Mr. Olson explained that 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. 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. Comms. Smith/Matasosky moved to approve the proposal from Craig Rapp LLC to complete the 2017-2019 Strategic Plan for Economic Development. 4. Review of Proposed Zoning Ordinance Changes for Multi -family Residential Development Mr. Olson explained that in the EDC packet contained information provided to the Planning Commission regarding multiple family development performance standards. The attached information provided background on options relating to density, building height, and off-street parking requirements. A brief discussion regarding how the city regulates where affordable housing can go. It was explained that affordable housing occurs either through tax increment financing districts (TIF) or through Federal Tax Credit application which requires the City Council's approval. 5. Director's Report Mr. Olson reviewed the Director's Report including the latest building permit report. 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 172nd 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 and a Chamber of Commerce Ribbon Cutting at Spm. They will feature seven different beers on tap and will also have growlers for sale. 6. Adjourn Meeting adjourned at 5:40 p.m. Respectfully submitted by Rick Howden, Economic Development Specialist 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: November 21, 2016 Subject: Draft 2017-19 Strategic Plan for Economic Development Attached is a memo to the City Council regarding the Draft 2017-19 Strategic Plan Economic Development that is the result of the two EDC Strategic Planning Work Sessions that were held in September and October. The EDC will be discussing this attached draft plan at your Thursday, December 1 It. EDC Members are invited to attend this City Council Work Session on Monday, November 28th at 6:00 p.m. The input received from the City Council will be presented at the December 1St EDC meeting. Staff is also looking for any additional input from the EDC on the draft plan. As the memo to the City Council indicates, once the City Council and EDC have both approved the Strategic Priorities, Desired Outcomes and Key Outcome Indicators, and Targets in the draft plan, staff will prepare the Strategic Initiatives to implement this plan. These would likely come back to the EDC and City Council in January for approval. Recommended Action: Provide staff with any additional input or comments on the draft 2017-19 Strategic Plan for Economic Development. Memorandum City of Lakeville Community & Economic Development To: Mayor and City Council Justin Miller, City Administrator From: David L. Olson, Community and Economic Development Director Copy: Economic Development Commission Rick Howden, Economic Development Specialist Date: November 21, 2016 Subject: Draft 2017-19 Strategic Plan for Economic Development The City's current three year Strategic Plan for Economic Development runs through the end of 2016. For the past three strategic plans over the last ten years, the City has brought in an outside facilitator to assist in the process. 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. Staff will provide a brief presentation of the status of the Strategic Priorities of 2014-16 Plan at the Work Session on Monday. Earlier this year the City retained Craig Rapp with Craig Rapp LLC to facilitate the process for the next three year plan. The proposed project approach is similar to the last plan he assisted the City with. The process included an analysis of Strengths- Weaknesses - Opportunities - and Threats (SWOT), questionnaires completed by City Council Members, EDC Members and City staff followed by two work sessions held by the EDC in September and October. Mr. Rapp is also currently facilitating a strategic economic development planning process for the Dakota County CDA. Tony Schertler, Executive Director of the CDA will be providing the City Council with an update on the status of this planning effort at Monday's meeting. The current draft 2017-2019 Strategic Plan for Economic Development identifies the following four Strategic Priorities: • Business Retention and Expansion • Maintain a Competitive Edge • Housing to Support Economic Goals • Workforce For each Strategic Priority the draft plan identifies Desired Outcomes, Key Outcome Indicators, and Targets listed on Page 3 of the proposed plan. The Strategic Initiatives to accomplish the performance Targets included in the draft plan would be completed by City staff after the City Council and EDC are comfortable with the other portions of the proposed draft plan. This would hopefully be completed by the end of January 2017. Recommended Action: Staff is requesting City Council input on the proposed Draft Strategic Plan for Economic Development to ensure that the recommendations of the EDC included in this draft document are consistent with the Council's priorities. DRAFT November 2o16 Economic Development Commission C RAI GRAPP,LLC envrS�oringg the P055M. j' j,,, ;--f DRAFT C RAI G RAPP, LLC Envisioning the possible. Making it m-hievable November 17, 2016 RE: FY 2017-2020 Strategic Plan- Lakeville Economic Development Commission Dear Chair Starfield, I am pleased to present this FY 2017-2020 Strategic Plan and Summary Report to the Lakeville Economic Development Commission. The plan reflects the Commission's commitment to strategic thinking, measurable results and the delivery of quality services. Thank you for the opportunity to assist the EDC with this project. You, the Economic Development Commission and senior staff are to be commended for your dedication and effort. I also want to thank Community and Economic Development Director Dave Olson, and Economic Development Specialist Rick Howden for the help and support provided during the process. Yours truly, Craig R. Rapp President 4o East Chicago Avenue #340, Chicago, IL 60611 800-55o-o6cg1 • www.craigrapp.com Table of Contents ExecutiveSummary.............................................................................................................. i Strategic Plan Summary 2017-2020 ............................................................................................... 3 Lakeville EDC Strategic Planning Process.................................................................................... 4 Assessing the Environment, Setting Direction............................................................................ 4 DefiningStrategic Priorities.......................................................................................................... 7 Key Outcome Indicators By Priority............................................................................................. 7 Implementing the Vision: Developing Strategic Initiatives and Action Plans ............................ 8 Strategic Planning Participants..................................................................................................... io Fxecutivp c_mmary On Thursday, September 29, and Thursday, October 27, 2o16 the Lakeville Economic Development Commission and senior staff engaged in a strategic planning process. The sessions yielded a draft strategic plan for the three-year period 2017-2020. The strategic plan consists of a set of four strategic priorities, which are the issues of highest priority for the next three years. Within each strategic priority is a set of desired outcomes, key outcome indicators, and performance targets, which describe expected results and how the results will be measured. To ensure the follow-through, the plan also includes a list of strategic initiatives, which define the actions that will be taken to achieve the targeted outcomes. At the initial planning meeting on September 29, the group reviewed their operating environment and identified a list of economic development challenges facing the community. Based upon those challenges, on October 27, the group identified a set of strategic priorities for the performance period. This was followed by the development of a set of key outcome indicators (KOI's) for each priority, which defined desired outcomes and measurable targets. During the month of December, city staff developed the initiatives and action plans necessary to achieve each of the targeted outcomes. The strategic priorities, key outcome indicators, and strategic initiatives are summarized on the following page. 2 DRAFT Lakeville EDC- Strategic Plan Summary 2017-2020 Strategic Desired Key Outcome Target Strategic Initiatives Priority Outcome Indicator (KOI) Business Limit loss of existing -Lakeville business No net loss over three Retention business inventory -Bldg. permits years Lakeville is the first -Business expansion & > _% current businesses and Expansion choice for relocation lists expand rather than expansion relocate Have a clear -Interview results > of all businesses understanding of -Expansion & relocation _% report on relocation and relocation and reports expansion decisions expansion decisions -EDC and City Council understand relocation and expansion requirements Maintain a Be the community Competitive data on Increase Competitive of choice development decisions wins/conversion rate by Edge Be the community -Industry evaluations Improve RE industry of choice Survey results opinion by _% Housing to Balanced housing Housing inventory 250 additional higher Support options to support density units that market demands address needs Economic Goals Housing developed Sites that leverage 2 sites developed in areas that commercial stimulate/enhance development commercial development Policy guidance in -Policies New comp plan update place to achieve a -Comprehensive plan w/ new provisions & variety of housing in zoning ordinance the city changes -by end of 2019 Workforce More quality jobs -DEED reports 20o new jobs paying -Incentives reports over $6ok/yr. Improved access to -List of available A commitment for a specialized training providers higher education & education campus Strategic Planning Pr Strategic planning is a process that helps leaders examine the current state of the organization, determine a desired future state, establish priorities, and define a set of actions to achieve specific outcomes. The process followed by the Economic Development Commission was designed to answer four key questions: (1) Where are we now? (z) Where are we going? (3) How will we get there? (4) What will we do? Assessing the Current Environment, Setting Direction On Thursday, September 29, the Lakeville Economic Development Commission began the strategic planning retreat by discussing the need for a compelling vision, or "Why?" As a result of that discussion, the group reviewed the current community vision statement developed for Envision Lakeville, and concluded that it fairly represented their "Why". The statement follows: City of Lakeville Vision: "We envision a thriving, multi -generational community where families, friends, and neighbors connect, live, learn, work, and play. Great schools; a diverse local economy; exceptional parks, trails, and recreational opportunities; vibrant social and cultural institutions; safe neighborhoods; and responsive and cost- effective public services— together create a place we are proud to call home." The group then turned to a discussion of the City's values and mission statements, along with the mission statement of the EDC to ensure that they were aligned. Again, upon review, they agreed that the EDC's mission statement aligned well with the mission and values of the City of Lakeville. The City's Mission and Values statements, and the EDC mission statement follow: City of Lakeville Mission: The City of Lakeville provides the foundation for healthy neighborhoods and successful businesses by investing in: Comprehensive planning + High quality and efficient services • Citizen participation • Effective partnership City of Lakeville Values (from Envision Lakeville): Diversified Economic Development • We value the stability and independence provided by a strong, diversified local economy. Good Value for Public Services • We value high-quality public services delivered cost effectively. Safety Throughout the Community 0 We value living in a community where people feel safe everywhere they go. Design That Connects the Community • We value a well-designed community and we place a priority on development that enhances connectivity and accommodates our changing needs. High Quality Education • We value and are committed to high quality education that sets us apart. AHome for All Ages and Stages of Life • We value living options for people of all ages and stages of life. A Sense of Community and Belonging • We value the sense of belonging that comes from our traditions and institutions, and we strive to support and preserve them. Lakeville Economic Development Commission Mission: "The EDC develops strategies and communicates benefits that will make Lakeville the best choice for decision -makers considering business location and expansion." Reviewing the Environment, Setting Strategic Priorities Following the review of the vision, mission and values, the Commission began the process of developing the strategic plan. The first step taken in the process was an assessment of the environment within which the City operates. This was done via a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis: a process that examines the organization's internal strengths and weaknesses, as well as the opportunities and threats in the external environment. To facilitate this, a SWOT questionnaire was distributed to the Commission and senior staff in advance of the planning session. The SWOT process revealed the most frequently mentioned characteristics in each area: STRENGTHS • Affluent community • Great infrastructure, including: o Location o Rail, airport, highways o Governance o Public safety o Education -highly educated/skilled workforce • Potential availability for residential and commercial development WEAKNESSF` • Housing o Affordability o Variety/Diversity • Labor o Workforce training o High skill/high wage jobs o Overall labor availability OPPORTUNITIES • Available land • Incentive packages 5 DRAFT • Population growth supporting retail • Housing growth/types and options THREATS • Compete (ability to) o Infrastructure—roads, County/State, technology access, high tax state, County culture, finance o Incentives o Regulations o Increasing cost of land o Real estate market o Development costs • Workforce o Housing available products o Current unemployment rate(s) o Skill gap o Aging populace o Public transportation • Outside Influences o Economic setbacks-national/political-recession o State available assistance/impacts—tools, etc. o Met Council policy The group then engaged in an exercise using the summarized SWOT data. They compared strengths with opportunities and weaknesses with threats, to determine which opportunities would maximize strengths, and which weaknesses would be exacerbated by the threats. This effort helped to crystalize the current challenges and opportunities facing the community. The results of this analysis are listed below: STRENGTHS -OPPORTUNITIES (Make 5ooc thir5s harenen) • Pursue commercial/retail development • Develop a variety of housing options • Provide strategic incentives to facilitate residential, commercial and industrial development WEAKNESSES -THREATS (Keep bad things from happening) • No workforce "match" o Existing residents - skillset o Existing business' needs • Transportation to jobs • Housing to meet needs • Need to maintain competitive "edge" Following this exercise, the group examined the results, and then engaged in additional brainstorming to identify a broad set of economic development issues and challenges facing the community: ISSUES/CHALLENGES • Housing • Transportation • Commercial/retail development • Workforce matching needs • Competitive edge/position • Jobs to match existing/growing population • High land costs • High development costs • Met Council/outside mandates Once the current challenges were identified, the group discussed the issues that were most important to the community over the next three years to meet those challenges. From that discussion, a set of four Strategic Priorities emerged. They are: STRATEGIC PRIORITIES 1. Business retention and expansion i. Maintain a competitive edge 3. Housing to support economic goals 4. Workforce Determining Success: Defining the Desired Outcomes, Key Indicators, and Targets After identifying strategic priorities, the group developed a set of desired outcomes for each. Once the outcomes were established, Key Outcome Indicators (KOI's) were defined and Performance Targets were developed. KOI's are things that are measured or tracked to monitor progress toward desired outcomes. Performance Targets define successful outcomes, expressed in measureable terms. The alignment created between priorities, outcomes and targets is important, not only for clarity, but also for maintaining a disciplined focus on the desired results. Key Outcomes, Indicators, and Targets, by priority are: Business retention and expansion a. Outcome: Limit loss of existing business; KOI: Lakeville business inventory, building permits; Target: No net loss over three years b. Outcome: Lakeville is the first choice for expansion; KOI: Business expansion & relocation lists; Target: > _% current businesses expand rather than relocate 7 DRAFT c. Outcome: Have a clear understanding of relocation and expansion decisions; KOI: Interview results, expansion & relocation reports; Target: > _% of all businesses report on relocation and expansion decisions, EDC and City Council understand relocation and expansion requirements 2. Maintain a competitive edge a. Outcome: Be the community of choice; KOI: Competitive data on development decisions; Target: Increase wins/conversion rate by _% b. Outcome: Be the community of choice; KOI: Industry evaluations, Survey results; Target: Improve RE industry opinion by _% 3. Housing to support economic goals a. Outcome: Balanced housing options to meet market demands; KOI: housing inventory; Target: 25o additional higher density housing units that address needs b. Outcome: Housing in areas that stimulate/enhance commercial development; KOI: sites that leverage commercial development; Target: 2 sites developed c. Outcome: Policy guidance in place to achieve a variety of housing in the city; KOI: policies, comprehensive plan; Target: New comp plan update w/ new provisions & zoning ordinance changes -by end of 2019 4. Workforce a. Outcome: More quality jobs; KOI: DEED reports, incentive reports; Target: zoo new jobs paying over $6ok/year b. Outcome: Improved access to specialized training & education; KOI: List of available providers; Target: A commitment for a higher education campus Implementing the Vision: Developing Strategic Initiatives and Action Plans To successfully address the strategic priorities and achieve the intended outcomes expressed in the performance targets, it is necessary to have a focused set of actions, including detailed implementation steps to guide organizational effort. The Economic Development Commission will accomplish this through strategic initiatives for each priority. Strategic initiatives are broadly described, but narrowly focused activities that are aligned with the priorities, and targeted to the achievement of outcomes expressed in the KOI's. In December, senior staff developed a set of strategic initiatives, and detailed action steps, summarized below: 1. Business retention and expansion a. b. C. 9 DRAFT z. Maintain a competitive edge a. b. C. 3. Housing to support economic goals a. b. C. 4. Workforce a. b. C. Strategic Planning Participants The strategic plan was developed with the hard work and dedication of many individuals. The Commission, with its foresight and dedication led the way, taking time out their schedules to commit to long-term thinking. They defined a direction and a set of outcomes that are important to the community. The senior staff supported the Commission and offered challenges to conventional thinking. Economic Development Commission Glen Starfield, Chair Lowell Collman, Commissioner Jim Emond, Commissioner Bob Gillen, Commissioner Sheila Longie, Commissioner Jack Matasosky, Commissioner Steve Rajavouri, Commissioner Quenton Scherer, Commissioner Tom Smith, Commissioner Daniel Vlasak, Commissioner City Administration -Department Staff Justin Miller, City Administrator David Olson, Community and Economic Development Director Rick Howden, Economic Development Specialist `N Memorandum 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: November 22, 2016 Subject: November Director's Report The following is the Director's Report for November, 2016. Building Permit Report The City has issued building permits with a total valuation of $194,068,353 through October. This compares to a total valuation of $171,193,356 for building permits issued through October of 2015. The City issued commercial and industrial permits with a total valuation of $45,592,011 through October compared to a total valuation of $44,007,000 during the same period in 2015. The City has also issued permits for 311 single family homes through October with a total valuation of $96,937,000. This compares to 291 single family home permits through October of 2015 with a total valuation of $91,470,000. The City also issued permits for 65 townhome units through October with a total valuation of $14,156,000. This compares to 40 townhome permits issued through October of 2015 with a total valuation of $7,381,000. The City of Lakeville had the highest number of residential permits issued in the Twin Cities for the month of October as well as Year-to-date according to the Builders Association of the Twin Cities. MNCAR Expo The City of Lakeville was an exhibitor at the 10th Annual Minnesota Commercial Association of Realtors (MNCAR) Expo on Wednesday, November 9 at the Depot in Downtown Minneapolis. Over 600 commercial brokers attended the expo this year and Lakeville was one of 79 exhibitors. Open to Business Quarterly Report Open to Business, a joint effort between Dakota County cities, the Dakota County CDA, and the Metropolitan Consortium of Community Developers to provide one-on-one business counseling and loans to current and prospective entrepreneurs. Through September 2016, the program has served 108 entrepreneurs in Dakota County, 12 of which were in Lakeville. Open to Business has been able to facilitate and leverage loans in Dakota County totaling over $469,500. An example of a Lakeville client is Ann Alaboud of Sweet Treasures Cakes, which won the latest season of "Cake Wars" on the Food Network. Cake Wars is a grueling competition where four expert bakers go toe -to -toe to see whose mind-blowing cake creation will be the star of a major event, earning them a $10,000 prize. Development Update Construction continues on a number commercial and industrial projects this Fall. Interstate Power Systems and Dakota Truck projects in the industrial park have or will be nearing completion in the next couple of months. Retail projects involving PetSmart and Schneidermans Furniture have walls going up and will be enclosed soon. Rainbow Childcare on Dodd Blvd has recently been enclosed. Building permits have recently been issued for the Dakota Curling Club remodeling project in the former Total Hockey space in Downtown Lakeville. Total Hockey is remodeling a portion of the current Schneidermans Furniture store on Junelle Path for their dryland training area. 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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 ci£y 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 pennits is issued per building which may include more than one housing unit). Permit value does not include the land/lot costs. Nov -15 Dec -15 Jan -16 Feb -16 I Mar -16 I April -16 May -16 June -16 July -16 Aug -16 Sept -16 Oct -16 YTD -16 Lakeville 37 73 64 44 24 1 35 1 52 1 42 8 58 49 33 1 47 1 42 611 Plymouth 26 Blaine 27 Plymouth 243 Blaine 492 Savage 21 Plymouth 26 Woodbury 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 ci£y 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 pennits is issued per building which may include more than one housing unit). Permit value does not include the land/lot costs. October Top Cities for Building Activity YTD Permits Permitted Units Permits Permitted Units Lakeville 37 Minneapolis 353 Lakeville 341 Minneapolis 1,186 Blaine 27 Lakeville 41 Blaine 263 Golden Valley 611 Plymouth 26 Blaine 27 Plymouth 243 Blaine 492 Savage 21 Plymouth 26 Woodbury 237 Lakeville 466 Woodbury 17 Andover 22 Otsego 171 Woodbury 277 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 ci£y 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 pennits is issued per building which may include more than one housing unit). Permit value does not include the land/lot costs. New homes are rising faster in the Twin Cities than usual, defying the seasonal slowdown Construction firms are enjoying a busy year for apartments and single-family homes. By Jim Buchta Star Tribune OCTOBER 26, 2016 — 8:39PM LEILA NAVIDI, STAR TRIBUNE Multifamily projects, mostly upscale rental apartments, represented fewer than half of all planned units for the month. But the bulk of those units were in a single building called H.Q., a 306 -unit apartment building in downtown Minneapolis. No chill so far this fall for Twin Cities homebuilders, who are raising as many houses as apartments and -beeping crews far busier than last -year -at this -time. L This month, builders were issued enough permits to construct 450 single-family houses, 33 percent more than October 2015, the Builders Association of the Twin Cities said Wednesday. Including apartments, 465 permits were issued for October. "More families are looking to build new single-family homes," said Meg Jaeger, president of the association. "With all of the right ingredients in place, we expect to .QPP PnntimiPd urnwtlh in that market " Multifamily projects, mostly upscale rental apartments, represented fewer than half of all planned units for the month. But the bulk of those units were in a single building called H.Q., a 3o6 -unit apartment building in downtown Minneapolis. The building, which broke ground earlier this month, is being developed by Kraus - Anderson as part of a full -block project that includes a new headquarters for itself, as well as a hotel and a microbrewery. Twin Cities homebuilders are having one of their best years in more than decade. For the first 10 months of 2016, there has been a 12 percent increase in the number of planned single-family houses in the metro area. Similar trends can be seen nationwide. On Tuesday, the National Association of Home Builders said that new home sales posted an unexpected 3.1 percent increase during September to a 593,000 -unit annual pace. The group said that sales were up in every region except the West. LEILA NAVIDI rkers are building a 17 -story residential er at 9th Street and Portland Avenue S linneapolis. In the wake of the recession, homebuilders were focused on dumping years' worth of unsold homes and not creating another backlog. At the current sales pace, there are enough new houses to last 4.8 months, according to the national association. That's more than double the supply of existing houses, but far fewer than what is typical. In a statement on the topic, Zillow's chief economist Svenja Gudell said that while it is tempting to see the data as a sign of strength, the 593,000 sales that happened last month are well below the 800,00o to 1 million sales needed to help create a more healthy balance between buyers and sellers. Gudell said the report was "pretty mediocre." She said because buyers still face limited inventory, despite a year -over -year gain, new houses are selling in near -record time. And compared with the 2005 pre - recession peak, new -home inventory is down by more than 50 percent in most regions, including the Midwest. "Those pre -recession highs may have turned out to be too lofty, but right now the market could easily absorb a lot more new homes than it is," Gudell said. More are remodeling In the Twin Cities and other major cities, job growth has exceeded housing construction by a long shot, deepening the shortage of options for entry-level buyers. At the same time, buyers have outnumbered sellers in some parts of the Twin Cities, leaving buyers with few options. That paucity of new and existing houses has been a boon to home remodelers. Home improvement spending is expected to hit an all-time high next year, according to a report released Tuesday by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, which showed that annual growth in home improvement and repair expenditures will continue to increase, surpassing 8 percent by the second quarter of 2017 before moderating later in the year. "Homeowner remodeling activity continues to be encouraged by rising home values and tightening for -sale inventories in many markets across the country," said Chris Herbert, managing director of the Joint Center. Recent increases in housing construction are also being hailed as a critical hedge against another price bubble. Competition for listings has led to bidding wars and over -ask -prices, raising concerns in several parts of the metro that prices are climbing too quickly. Few building sites available In the Twin Cities and beyond, builders and developers are vying for a limited number of buildable lots, putting upward pressure on prices. A recent NAHB/Wells Fargo Housing Market Index survey showed that 64 percent of homebuilders said the availability of homesites was "low" or "very low." That was the highest figure since the builders group started tracking the data in 1997• Mark Gianopulos, regional director of Metrostudy's Twirl Cities market, said that lot shortages come at a time when prospective buyers are becoming more price sensitive. Since peaking in 2007, lot inventory levels in the metro have fallen 45 percent. In parts of the metro area, the gap in price between an existing home and a newly constructed home has widened to range from $125,000 to $225,000. "Continued rising construction costs, development costs, and increased regulation could all negatively impact the potential growth in the local housing market," Gianopulos said. Growth tapering in Twin Cities office, industrial real estate markets With fewer spec projects in the Twin Cities, the peak is likely behind us, experts say. By Don Jacobson Special to the Star Tribune OCTOBER 27, 2016 - 5:30PM HYDE DEVELOPMENT The future of speculative industrial building in the Twin Cities will likely resemble Hyde Development's Northern Stacks in Fridley. This year and last have been relatively good times for the Twin Cities' office and industrial commercial real estate markets. Vacancy levels in the office market are nearing pre -recession lows while a massive building boom has been ongoing in the industrial sector. A panel of top local experts met this week for an industry -sponsored event at the Hopkins Center for the Arts to assess whether the trends will hold. Their verdict generally was `yes," though likely not as robustly. They said the Twin Cities remains at the center of a strong regional economy that is attracting new residents and capital investment from around the world. That is introducing new players to both the office and industrial sectors, pushing up rents and sparking strong interest from capital investors seeking to buy and build commercial properties. The downside is that we may be nearing or at the peak of the wave of the current cycle. Indeed, the title of the event, "Riding the Wave," implies it will inevitably break. Industrial real estate Last year was a truly amazing one for the building of new high-ceilinged bulk distribution warehouse space, as well as other industrial real estate, with a record 4.8 million square feet of new construction delivered into the market. WA, - Awl HANDOUT Twin Cities office market has seen the elopment of new construction, such as all -wood T3 building in the North Loop, This year, however, the amount of new space built — while still quite healthy by typical standards — will not be nearly as high. And there is another big difference: Rather than being built mostly on a speculative basis as previously, the balance has shifted to "build -to -suit" projects, meaning developers are proceeding only when they have a specific user lined up. "In 2014, developers sensed the demand was there to do speculative projects, so they hit the gas pedal," said Tim Elam, the Twin Cities leader of Indianapolis -based industrial developer Scannell Properties. "But this year, only 30 percent of the product delivery will be `spec,' while 70 percent will be built -to -suit. "It seems pretty clear that 2015 was the peak of the market — that's what we believe is the case around the country. The only question is, `How quickly are we going to come back down?' " Matt Oelschlager, a first vice president with CBRE, added, "There are still a lot of positives, one of them being is that the activity we are seeing is from companies growing, rather than from making lateral' moves. And we certainly aren't seeing any corporate downsizings." The future of speculative building, the panelists agreed will likely be with smaller "infill" projects on reclaimed land closer to the urban core, such as Hyde Development's Northern Stacks project in Fridley. Office space on the upswing With the metrowide vacancy rates finally nearing pre -recession levels and rents rising, it has been an upbeat 18 months for office brokers and landlords. Downtown Minneapolis, especially, has benefited from a suburban -to -urban migration, said Erin Wendorf, a vice president with Transwestern. "Amenities to attract `Generation Y users are becoming more important than ever," she said. "Organizations are leveraging their spaces as tools to attract and retain talent like never before. The cost of replacing employees is high, so investing in a downtown `unique statement space' that highlights a company's brand and culture is a big trend." But that hardly spells doom for the suburban office market, said Steve Shepherd of Colliers International. "Suburban offices can create their own amenities," he said, citing the Wirth Corporate Center in Golden Valley as an example of how an outmoded "Class B" suburban office building could be made attractive to younger workers with common -area renovations and a location near a major city park. And if the near future of the office market can be judged by investor interest, then it will remain in good shape, said Avery Ticer of Cushman & Wakefield/NorthMarq, who noted that institutional buyers have expanded their wish lists to include such re -purposed and "stabilized" suburban office properties. Don Jacobson is a freelance writer in St. Paul. He is the former editor of the Minneapolis -St. Paul Real Estate Journal. �pFCIAL SERVICE DISTRICT NO. 1 Downtown Lakeville Business Association Established in 1998 by City Council Resolution HISTORIC: DOWNTOWN LAKt ILLirE PRESENTATION TO THE LAKEVILLE CITY COUNCIL November 7, 2016 BOARD OF DIRECTORS Paul W. Haglund, Paul Haglund & Company, LLC President Mark Hotzler, Metro Equity Management, LLC Vice President James Kretsch , Kretsch Law Office, PLLC Director Kristina Murto, Ensemble Creative and Marketing Director Jane Hotzler, Metro Equity Management, LLC Proxy Director ADVISORY BOARD Nancy P. Smith Property Owner Jon Koznick Property Owner Lisa Vossen Pink Door Boutique Megan Seiler Lakeville Brewing Company Art Kosieradzki SiebenCarey 1 • Support of New Business' • Member SuppoTHANK YOU! • Holyoke Avenue Improvement Project dM NETWORK �;;�. Frencxies i LOGISTICS MANAGEMENT 1 1 1 �a�afa 111104 LELOCKWOOD Curling 2aG E NTER 8E, RIR PARTNERS ,�. w. .0 (� wtivw_dakotacounty_us CITY OF LAKEVILLE INDEPENDENT SCHOOL DISTRICT 194 LAKEVILLE AREA ARTS CENTER LAKEVILLE COMMUNITY EDUCATION & ECFE ,60Communiiios PAN-O-PROG COMMITTEE �t,Ed„� HERITAGE SENIOR CENTER ��IakEvitle�Arc, auDlir scboola -V 360 COMMUNITIES -- `-- LAKEVILLE AREA CHAMBER OF COMMERCE DAKOTA COUNTY HERITAGE LIBRARY ST. PAUL FARMERS' MARKET 2 MISSION STATEMENT 'To create a uniue 'Downtown' business environment w ich blends the cultural, historical and economic opportunities of a rapidly growing community situated in a major metropolitan area." "From a non -retail, service business perspective, I believe the DLBA provides a sounding board for the business owners. It helps us connect with the other members, building mutually supportive relationships. From a marketing company's perspective, we understand the value of the DLBA in brand building as it provides a consistent and on-going awareness of Downtown Lakeville to the greater community and beyond." -Steve Volavka, Ensemble Creative & Marketing KEY OBJECTIVES ■ Promote the Downtown Businesses Coordinate communication between businesses o Work cooperatively with other civic organizations Utilize social media and website to communicate information and events to the public . Sponsor promotional events that attract people to Downtown Lakeville "The DLBA has really helped me & Frenchies become integrated into this wonderful downtown business community! I have met so many new people to market and network with. Thank you Anne and the DLBA for all of your support!" -- Kate Wensmann, Frenchies Modern Nail Care I NEW INITIATIVES Puppet Wagon . Ready, Set, Achieve Partnered Event . Sponsorships . Holyoke Avenue Improvement Project Social Media Campaigns "Thank you (DLBA) for everything you guys have done!!!! My family and I appreciate it greatly." -Jeff Beck, Toppers Pizza WEBSITE & SOCIAL MEDIA Facebook engagement increased over 160% since 2015 Total Pepe Likes as of Today 2 720 iow vain r.<. 1.720 k� . Increased presence on Twitter - over 350 new followers . Newsletter audience continues to increase ■ www.downtownlakeviIle.com website Over 11,621 new users visited our website this year Largest spike of website traffic during summer months "We appreciate the support of the DLBA with keeping us informed about Lakeville updates and happenings. They help get the word out about our Toys for Tots drive and any other promotions we have going on throughout the year. They are always a first line of contact for any downtown questions for us." Julie Miller, Miller -Hartwig Insurance L9 BLOCK BASH SPRING & SUMMER EVENTS FALL & WINTE FARMERS' MARKET & PUPPET WAGON ../JJJJJJJJ JJJ J..rJJ✓JJJJJJJJ'J % HOLIDAY ON MAIN a I 0 FNWx I" =p-1. 11A BLOCK BASH ureruNc FRI AUG 19' aoow-::wowFIASHMM [TIMI i MAOIlOM MII sm Lpl i >•PIaTi -, uvt FALL & WINTE FARMERS' MARKET & PUPPET WAGON ../JJJJJJJJ JJJ J..rJJ✓JJJJJJJJ'J % HOLIDAY ON MAIN a I 0 RETAIL COMMITTEE EVENTS Promotion of Other Downtown Events 1ar..hi� Xf11� i�N►+aILM r t t :t' I.1$ S R �t l MOVING FORWARD • Emphasis on Marketing for Downtown Lakeville • Consider Signage Options for Downtown Lakeville • Holyoke Avenue Improvement Project Communication • Continue to promote Downtown Lakeville • Continue to support business development and new businesses • Continue to increase social media, website and email audience "The DLBA assists in creating positive experiences for its members through marketing efforts, assisting in fostering and maintaining business connections, and reaching out to the general public in an effort to preserve the downtown area as a place of historical significance, community, pride and commerce. We enjoy working with the DLBA on a regular basis and know that Downtown Lakeville and the City of Lakeville are better places due to the existence of the DLBA and the leadership that helps guide it in an ever changing business environment." -Brandon Lichty, Metro Equity Management 0 An abundance of attractive design features may not make a downtown a distinctive place: without a well -organized, coordinated public-private partnership, a calendar of events and prornotions to rnake the public aware of this special place, and a mix of economic functions to draw people there." -National Main Street Center and Trust for Historic Preservation li!<TQRW F30WNTo SVA--; LAKEVILLE. Positioned to Thrive 0 TO BUSINESS Dakota County 1/1/16 —9/30/16 Clients Served: Total Entrepreneurs 108 Pre-Start/Start Up 50 Existing Business 58 Inquiries 180 (Requests for information/referral, not a formal client) Financing: Provided (Dakota County Businesses) Number 1 Amount $ 24,000 Provided (Dakota County Residents) Number 0 Amount $ 0 Microgrants Number Amount Credit Builder Loans Number Amount Tota Requests/In Process Number Total Request 0 $0 9 $ 2,220 $ 26,220 1 $ 40,000 Client City: Apple Valley 13 Burnsville 21 Eagan 21 Farmington 13 Hastings 2 Inver Grove Hts 5 Lakeville 12 Mendota Heights 8 Rosemount 5 S. St. Paul 3 W. St. Paul 4 Townships 1 Undecided Location 0 Industry Segment. Retail 26 Service 56 Food 18 Manufacturing 2 Technology 2 Construction/Related Trades 4 Referral Source: Municipalities/CDA 47 Chamber 10 Internet 3 Friends/Family 8 Other (Banks, Schools, Etc.) 40 Hours of Direct Service: Facilitated/Leveraged Loans Amount $ 469,500 1St Quarter 2 n Quarter 3rd Quarter 4th Quarter 479.85 459.25 568.50 0 10 ARTICLES EVERY 30 DAYS, SUBSCRIBE (HTTPS.-//USERS.STARTREBUNE.COMIPLACEM NT/6/EKVHtONMENT/3/SIGN-UP/START) FOR MORE LOGIN SOUTH METRO (HTTPS://USERS.STARTRIBUNE.COM/MEMBER_CENTER) New look in the works for downtown Lakeville The Holyoke Avenue Streetscape Project aims to draw in more businesses. By Emma Nelson (http://wwwstartribune.com/emma-nelson/261800211/) Star Tribune NOVEMBER 12, 2016 — 7:48AM The lunchtime rush at Mainstreet Coffee and Wine Bar came all at once, and the three women behind the counter were moving fast. They ladled soup, rolled wraps and poured icy drinks as customers streamed in from the humming main street outside, an unusually warm November day shining through the front window. The coffee shop and wine bar is one of dozens of businesses that make their homes along and around downtown Lakeville's historic Holyoke Avenue. Over the past year, a combination of aging pavement, empty storefronts and growth in other parts of the city has pushed city officials and local business owners to dream up a new look for the downtown corridor — an effort to draw customers and new businesses into downtown. "We have a small, historic downtown. And I think that is what makes it somewhat unique, especially in a suburban community like Lakeville," said David Olson, the city's community and economic development director. "We want to retain some of that historic element, but obviously we need to keep up with the infrastructure too." What's been dubbed the Holyoke Avenue Streetscape Project started out as routine road work through downtown, said Public Works Director Chris Petree. After consulting with business owners over the past year, it's expanded into "a complete streetscape project," he said. Though the project is still in its early stages, preliminary designs include aesthetic changes — planters, bike racks, benches — in addition to sidewalk replacement. There are also plans for signs in and around downtown that would direct visitors there. There's been a lot of residential development in Lakeville in recent years, and local businesses want to draw those new residents, said Anne Kutzler, director of the Downtown Lakeville Business Association. "We are fortunate to have a historic Mainstreet," Kutzler said. "And with a concerted effort to work together as a community, we can really enhance the natural charm of downtown Lakeville." She added: "We have some great new businesses downtown." Two new brewpubs recently filled yearslong vacancies in an old hardware store and a VFW Post, and a grocery store that became a hockey training center will soon reopen as a curling club. Still, other empty storefronts — such as the old Ben Franklin store that closed its doors earlier this year — remain a blight on the short stretch of road that passes through downtown. Olson said downtown business turnover isn't unique to Lakeville. He sees the vacant spots as opportunities for more redevelopment. The downtown business association conducted surveys to get a sense of what business owners want, Kutzler said. In general, she said business owners expressed support for low-cost updates. Business owners will face assessments for the project. City officials plan to solicit construction bids in April for the entire streetscape project, with a goal of starting construction in July, after the annual Pan -O -frog summer festival — short for Panorama of Progress. emma.nelson@startribune.com 612-673-4509 emmamarienelson 47622579.jp9) (http://stmedia.startribune.com/images/ows_14789584& The old bank building in historic downtown Lakeville is now home to Mainstreet Coffee and Wine Bar. Menasha Announces Consolidation Plans for Brooklyn Park, Minn., Plant The company's Brooklyn Park, Minn., corrugated sheet plant will be consolidated into its Lakeville, Minn., plant Neenah, Wis. (PRWEB) November 10, 2016 Menasha announced that it will consolidate its Brooklyn Park, Minn., corrugated sheet plant into the company's Lakeville, Minn., plant by the end of March 2017. The consolidation will optimize efficiencies and centralize the company's Minnesota manufacturing operations in support of growth of its retail display services. The Brooklyn Park plant employs 84 and has been in operation since 1984. Employees will be offered an opportunity to apply for positions at other Menasha plants. The consolidation will not affect production. Equipment from the Brooklyn Park facility will be relocated to the Lakeville, Minn., facility. About Menasha Menasha Packaging Company, LLC, based in Neenah, Wisconsin, is a subsidiary of Menasha Corporation and has approximately 3,300 employees at locations across North America. Menasha is a leading provider of graphic consumer packaging, merchandising solutions, corrugated packaging, food packaging, shipping containers, material handling solutions, and pack -out and fulfillment services. With a network of design, sales service centers, corrugated and paperboard manufacturing plants, and fulfillment facilities located throughout North America, the company's mission is to help its customers protect, move, and promote their products better than anyone else. Visit its website at http://www.menasha.com. About Menasha Corporation Menasha Corporation is a leading corrugated and plastic packaging manufacturer and supply chain solutions provider specializing in retail merchandising packaging and displays, plastic reusable containers and pallets, protective packaging interiors, and packaging supply chain and fulfillment services. Menasha Corporation's products and services are used by major food, beverage, consumer products, healthcare, pharmaceutical, industrial and automotive companies. Established in 1849, Menasha Corporation is one of America's oldest privately held, family-owned manufacturing companies. Headquartered in Neenah, Wisconsin, the company employs approximately 5,600 employees in more than 100 facilities in North America, Europe, and Asia. For more information, visit http://www.menashaeorporation.com. Contact Information Tara Brzozowski Element Creative http://goelement.com/ (920) 983-9700 Disclaimer: If you have any questions regarding information in these press releases please contact the company listed in the press release. Please do not contact PRWebO. We will be unable to assist you with your inquiry. PRWeb@ disclaims any content contained in these releases. Our complete disclaimer appears here. ©Copyright 1997-2013, Vocus PRW Holdings, LLC. Vocus, PRWeb and Publicity Wire are trademarks or registered trademarks of Vocus. Inc. or Vocus PRW Holdings, LLC. Terms of Service I Privacy Policy 8/3/2016 Hy -Vee planning to build in Farmington Business - Community & People Hy -Vee planning to build in Farmington Published August 1, 2016 at 7:38 pm By Andy Rogers Construction of a Hy -Vee grocery store is in the planning stages in Farmington, according to city officials. The Iowa - based grocery store chain is planning to build in the Vermillion River Crossings commercial district. The graphic is an example of the one built recently in Lakeville. (Photo submitted) Hy -Vee is planning on building a grocery store in Farmington, according to city officials. The Iowa -based. grocery chain has submitted a proposal to -the cityAo_built a store in the Vermillion River Crossing, a commercial district south of Highway 3 near Dushane Parkway. New Hy -Vee stores typically include a pharmacy, floral shop, catering, in-store dietitian, sushi bar, juice and smoothy bar, salad bar, deli, bakery, butcher and in-store coffee shop. Adam Keinberger, Farmington community development director, said the plans are similar to that of other stores in the metro area. The complex includes a detached gas/convenience store as well, something the commercial district in Vermillion River Crossings lacks. The Farmington Planning Commission is scheduled to review the proposal later this month. Mayor Todd Larson said they've been working with Hy -Vee for the past year. "For this to move forward, even though it hasn't yet, is very important for the community;" Larson said. Hy Vee grocery chain made a move into the Twin Cities market in 2014 following the closing of 8/312016 the Pilot Knob intersection. Hy -Vee planning to build in Farmington Other metro locations include Oakdale, New Hope and Brooklyn Park. The move is quite the relief for Farmington officials. The district was designed by Farmington officials in 2001 with the intention it would become a large commercial development. The City Council approved a master plan in 2003 and built up the infrastructure in the area in 2005 hoping it would be repaid through assessments, fees and a larger tax base. "It's been a long time," Larson said. Following nationwide recession in 2007, development stalled. Aside from a senior housing complex, fast food restaurant and a clinic, it sat undeveloped for more than a decade. 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