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HomeMy WebLinkAboutItem 06 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: December 8, 2020 Subject: December Director’s Report The following is the Director’s Report for December 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 was up to $400,000. A total of 53 applications were received and ten grants were awarded. Note: several Lakeville second round applicants overlapped with the Dakota County grant program and therefore received funds from the county. Dakota County’s Small Business Relief Grant Program closed its application window on August 14. One-time grants up to $15,000 were 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. The County also conducted a second round of grants and accepted applications for that program from October 26-November 6. The second round included home-based businesses as eligible. 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. Governor Walz recently added $10 million to the state’s grant program in order to fund previous applicants who were not chosen in the lottery. A formal grant recipient list has not yet been announced by the State. The City Council has preliminarily discussed the possibility of a third grant round to assist Lakeville businesses shut down by Executive Order 20-99, but have not made any determinations at this time. Governor Walz has announced his support for a small business financial relief package and will call the Legislature into a special session when the two chambers reach an agreement. The Council did agree to waive the second half payment of business liquor licenses (due on November 30). Development Update The following are updates on a number of active commercial, industrial, and multi-family residential projects: • Walls are going up on the new 750,000-square-foot Amazon office and distribution center building. The property is located south of 217th Street and west of Dodd Boulevard (CSAH 9) – south of QA1. When complete, the fulfillment center, called an AMXL FC, will deliver large item orders, such as mattresses, grills and exercise equipment, within a 45-mile radius. The new Amazon facility is valued at $45 million and 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. The Moments is also adding a large brick patio area to the east of the existing memory care facility. • U-Haul’s new 131,307-square-foot three-story climate-controlled self-storage building is open for business. The 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 has been issued a building permit to begin expanding the existing cross-dock transload facility, maintenance building and trailer parking area. 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 Second Addition, located east of Cedar Avenue (CSAH 23) and north of 222nd Street, is now complete. The 150,000-square-foot, two-tenant warehouse building has one confirmed tenant - Sweet Harvest Foods. Sweet Harvest Foods is currently moving into its new 100,000-square-foot distribution space. Building Permit Report The City has issued building permits with a total valuation of $372,141,389 through November. This compares to a total valuation of $282,631,363 for building permits issued through November of 2019. The City issued permits for 579 single-family homes through November with a total valuation of $171,785,000. This compares to 476 single-family home permits through November of 2019 with a total valuation of $145,537,000. The City has also issued 143 townhome permits with a total valuation of $27,571,000 through November, compared to 91 townhome permits with a total valuation of $19,864,000 during the same period in 2019. The City has issued eight apartment permits through November, totaling 200 units, with a valuation of $27,833,000. The City has issued commercial and industrial permits through November with a total valuation of $100,720,351. This compares to a total valuation of $59,994,809 through November 2019. Lakeville has issued the highest number of residential permits year-to-date in the Twin Cities followed by Otsego, Woodbury, Cottage Grove and Plymouth. Additional Highlights Hy-Vee Lakeville was presented with the 2020 Employer of the Year for People with Disabilities during the Legislative and Employer Awards Virtual Event on December 4, hosted by Dakota-Scott County Workforce Development Board. The Employer of the Year for People with Disabilities is presented to an employer who has improved the lives of people with disabilities through employment.