HomeMy WebLinkAboutItem 7
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: October 27, 2020
Subject: September Director’s Report
The following is the Director’s Report for October 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 41 businesses were approved for grant agreements. Grant awards were made on a
first-come, first-served basis.
The City of Lakeville’s Second Round Small Business Emergency Grant Program accepted applications
on lakevillemn.gov from September 16-30. Per EDC and Council recommendation, the program used
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. A total of 53 applications were received and six applicant businesses have
received grant funding so far, while several remain in process.
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. The
Dakota County Board of Commissioners also chose to award grant funds to DEED applicants who were
not selected during the state’s lottery process. We believe that between 100-200 Lakeville businesses
will receive grant funding from Dakota County.
DEED continues to work 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 and Dakota County 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 was
approved during the October 19th City Council meeting. During the meeting staff was finally
able to announce that Amazon will be moving into the 750,000-square-foot office and
distribution center building. The property is located south of 217th Street and west of Dodd
Boulevard (CSAH 9) – south of QA1 and the fulfillment center, called an AMXL FC, will fulfill large
item orders, such as mattresses, grills and exercise equipment, within a 45-mile radius. The new
Amazon facility is anticipated to open in Fall 2021.
• Children's Minnesota is remodeling 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, is expanding 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). A building permit is likely to be issued
by the end of October.
• Interior work is underway on the Launch Park Second Addition site located east of Cedar Avenue
(CSAH 23) and north of 222nd Street. The 150,000-square-foot, two-tenant warehouse building
has one confirmed tenant - Sweet Harvest Foods (currently located in Rosemount), which will
lease 100,000 square feet of this building for a new distribution center.
Building Permit Report
The City has issued building permits with a total valuation of $239,150,623 through September. This
compares to a total valuation of $222,544,781 for building permits issued through September of
2019.
The City issued permits for 432 single-family homes through September with a total valuation of
$129,610,000. This compares to 378 single-family home permits through September of 2019 with a total
valuation of $116,045,000.
The City has also issued 112 townhome permits with a total valuation of $21,109,000 through
September, compared to 65 townhome permits with a total valuation of $14,228,000 during the same
period in 2019. The City has issued eight apartment permits through September, 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, Otsego, Plymouth, and Cottage Grove.
Additional Highlights
• The annual Manufacturers Appreciation Breakfast was held on October 9th at the Holiday Inn &
Suites. Three industrial park business leaders (Paul Gintner, BTD; Scott Lindblad, Automated
Assembly; Todd Sondag, Interstate PowerSystems) spoke to the group about their companies’
experiences during the pandemic and their outlook on 2021. We appreciated the opportunity
to thank our manufacturing business community this year, as the industrial park remains an
important employment hub for Lakeville.
November / December Meeting Dates
Staff is suggesting that we hold one meeting for the months of November and December. In past years,
the November meeting typically occurs on the normal 4th Tuesday and the December meeting is usually
cancelled as it normally falls close to the Christmas holiday. Staff is recommending that we hold a
meeting on Tuesday, December 8th at 4:00 p.m. to avoid having a meeting during week of
Thanksgiving and the week of Christmas.