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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.