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HomeMy WebLinkAboutitem 6 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 Kati Bachmayer, Economic Development Coordinator Date: September 22, 2020 Subject: September Director’s Report The following is the Director’s Report for September 2020. Small Business Grant Programs The City of Lakeville Small Business Emergency Grant Program (First Round) closed its application window on August 7. The program is using CARES Act dollars to provide Lakeville businesses up to $10,000 to assist with eligible COVID-19 related expenses. The total allocation for the grant program is up to $484,694. Eligible businesses must have a physical establishment in Lakeville, 25 or fewer full- time equivalent employees, and under $1 million in annual revenue. The City received 78 total applications and 38 businesses have been approved for grant agreements. Grant awards are being made on a first-come, first-served basis. The City of Lakeville’s Second Round Small Business Emergency Grant Program is accepting applications on lakevillemn.gov from September 16-30. The program is using the same guidelines as Dakota County and DEED’s previous grant programs. Eligible businesses must have a physical establishment in Lakeville and 50 or fewer full-time equivalent employees. The total allocation for the second grant round is up to $400,000 and grants will again be awarded on a first-come, first-served basis. Dakota County’s Small Business Relief Grant Program closed its application window on August 14. One-time grants up to $10,000 are being awarded to all eligible (non-duplicate) applicants. Approximately 100 Lakeville businesses are likely to receive a grant from Dakota County. DEED has been working with their nonprofit partners to notify grant recipients and disperse funds. A formal grant recipient list has not yet been announced by the State. The City remains in communication with DEED staff in order to prevent grant duplicates, per the City’s grant guidelines. Development Update The following are updates on a number of active commercial, industrial, and multi-family residential projects: • Scannell Properties’ final plat application for Interstate South Logistics Park Third Addition will be reviewed during a September 28th special City Council meeting. The preliminary plat and CUP application was approved during the September 8th City Council meeting. The property is located south of 217th Street and west of Dodd Boulevard (CSAH 9) – south of QA1. The proposed site plan shows the construction of a 750,000-square-foot office and distribution center building. The building’s user has not yet been identified. • Children's Minnesota has been issued a building permit to remodel the former HealthPartners Park Nicollet Clinic at 18432 Kenrick Avenue. The multi-tenant building is next to Northern Taphouse and Citizens Bank. • The Moments Memory Care expansion construction continues on its 2-story, 78,000-square- foot building expansion to the west, located at 16258 Kenyon Avenue. The building addition will house 60 new memory care units. • U-Haul’s new 131,307-square-foot three-story climate-controlled self-storage building has opened for business. The new building is located at the southeast corner of Cedar Avenue (CSAH 23) and Lakeville Boulevard (CSAH 50). • Significant construction progress continues to be made on two new multi-family developments in the City including Springs at Lakeville - 260 market-rate rental townhome-style apartments at the northwest corner of Cedar Avenue and Dodd Boulevard, and the Edison at Spirit – 160 market-rate apartment units near Hy-Vee grocery store and Taco Bell, just east of Pilot Knob Road and south of County Road 46. The first phase of Springs at Lakeville is occupied and half of the Edison at Spirit building is now occupied. • FedEx Freight located at the southeast corner of Co. Rd. 70 and Dodd Blvd received preliminary plat and final plat approval by the City Council on July 20th. This project involves the expansion of the existing FedEx cross-dock transload facility, maintenance building and trailer parking area. FedEx Freight's current building footprint is 93,600 square feet consisting of office, maintenance, and warehouse constructed in 2015. The building expansion consists of 88,255 square feet added to the maintenance and warehouse buildings bringing the total building area to 181,800 square feet. FedEx Freight is located at 9331 217th Street at the southeast quadrant of 215th Street (CSAH 70) and Dodd Boulevard (CSAH 9). • Launch Park Secon d Addition is under construction on the site located east of Cedar Avenue (CSAH 23) and north of 222nd Street. The platted lot is 15 acres in area and will include a 150,000-square-foot, two-tenant warehouse building for which a building permit valued at $7,430,000 was issued this week. Sweet Harvest Foods, currently located in Rosemount, will lease 100,000 square feet of this building for a new distribution center. • Charthouse Senior Living, LLC is finishing the exterior on its 55-unit, four-story senior independent living facility with a wellness center and underground parking, located in the northwest corner of Kenwood Trail (CSAH 5) and Klamath Trail. This building and the original Kingsley Shores facility will be connected by a second story skyway and through their underground parking garages. Soil contamination and environmental concerns were discovered last fall during construction. Staff has worked with the Developer to secure a $81,600 grant from the Dakota County CDA and a $413,000 grant from the MN Department of Employment and Economic Development for contaminated site cleanup. The project is expected to be completed by this November and is over 50% pre-leased. Building Permit Report The City has issued building permits with a total valuation of $205,927,570 through August. This compares to a total valuation of $200,133,699 for building permits issued through August of 2019. The City issued permits for 364 single-family homes through August with a total valuation of $108,718,000. This compares to 322 single-family home permits through August of 2019 with a total valuation of $100,025,000. The City has also issued 98 townhome permits with a total valuation of $18,339,000 through August, compared to 55 townhome permits with a total valuation of $12,098,000 during the same period in 2019. The City has issued eight apartment permits through August, totaling 200 units, with a valuation of $27,833,000. Lakeville has issued the highest number of residential permits year-to-date in the Twin Cities followed by Woodbury, Plymouth, Cottage Grove and Otsego. Additional Highlights • The State of the Business Community took place on September 17th at the Holiday Inn & Suites. This event was rescheduled from its original March date. Mayor Anderson and Director Olson shared information with attendees about Lakeville’s business growth in 2019 and year-to-date in 2020. • The annual Manufacturers Appreciation Event will be held on October 9th at the Holiday Inn & Suites. The 2020 event will include breakfast and local business leaders speakin g about their companies’ experiences during the pandemic. We are looking forward to thanking our manufacturing business community again this year, as the industrial park is an important employment hub for Lakeville. • The City of Lakeville is a finalist for the Minnesota Real Estate Journal’s City of the Year Award. This award is based on commercial and industrial development that occurred in 2019, which includes Compeer Financial, Aldi, Hampton Inn & Suites, QA1 Precision Products, and Schneiderman’s Distribution Center. The award presentation is scheduled to take place on October 1st. • Lakeville has a new Open to Business advisor, Natalie Mouilso, who works with local small business owners to access the planning and technical assistance and financing options they need to succeed. Natalie can be reached at nmouilso@mccdmn.org or at 952-451-6390.