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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.