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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: 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.