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01-22-08
Cify of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, January 22, 2008, 5:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order. 2. Approve November 27, 2007 meeting minutes 3. Election of Officers 4. Summary of 2007 Development Project Feedback Surveys 5. Review of 2007 Development Summary 6. Review and Discussion of 2008-2010 Strategic Plan for Economic Development Work Program for 2008 7. Director's Report 8. Adjourn Attachments: December (Year End) Building Report Dakota-Scott Workforce Investment Board News and Notes-Nov.-Dec.- 2007 News Release -January 15, 2008 -Minnesota Department of Employment and Economic Development - "Minnesota Employers Shed 2,300 Jobs in December" 2008 EDC Meeting Schedule Please Note: Because of the Martin Luther King Holiday, the City Council meeting is being held on the same night as the EDC Meeting. The Council meeting starts at 7:00 p.m., so we will need to adjourn the EDC Meeting no later than 6:45 p.m. City of Lakeville Economic Development Commission Meeting Minutes November 27, 2007 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Vlasak, Smith, Em~znd, Erickson, Schubert, Tushie, Gehrke, Brantly, Ex-officio member Mayor Holly Dahl;' Ex-officio member City Administrator Steve Mielke, Ex-officio member Chamber: raf Commerce Executive Director Todd Bornhauser. Members Absent: Comm. Pogatchnik. Others Present: David Olson, Community;,,&;Economic Development Director; Adam Kienberger, Economic Development Specialist; Allyn Kuennen, Associate'Pfanner; Jay Thompson, Brian Smith, Maxfield Research; Ben Goons; BTTTF representative. 1. Call Meeting to Order Chair Matasosky called the meeting to order at 5:00 p:m.,in the Marion Conference Room of City Hall, 20195. Holyoke Avenue, Lakeville; Minnesota. -r. 2. Approve October 22 2007 Meeting Minutes Motion 07.13 Camms. Emond/Gehrke moved to approve the minutes of the October 22, 2007s~meeting as presented. Motion carried unanimously. 3. Presentation by'IUlaxfield Research on Senior and Workforce Housing Market Analysis Jay Thompson and Brian Smith of Maxfield Research presented their findings of a market analysis of senior and workforce housing in Lakeville. Findings included a forecasted demand tar approximately 1,300 senior housing units by 2020, and approximately 2~40n workforce housing units by 2020. Mr. Thompson noted that Maxfield Research' used values up to 115% of the Area Median Income (AMI) to define workforce housing in their report as it more accurately reflects area demographics and housing patterns. The Met Council currently calculates workforce housing at 60% of the AMI for their affordable housing goals. The EDC raised questions regarding the percentage of workforce housing in surrounding communities and how they compare to the projections for Lakeville. Economic Development Commission Meeting Minutes November 27, 2007 Mr. Thompson responded that communities such as Burnsville and parts of Apple Valley have an older existing housing stock that as this housing stock continue to age becomes more moderate in price. Because of this, these communities will have a higher percentage of workforce housing units than is forecasted for Lakeville. Comm. Tushie noted that there is a demand for life-cycle housing in Lakeville as people who grew up here are unable to afford housing in: Lakeville as they move back and move through different stages in life. Mr. Mielke inquired as to why in the workforce houstng: analysis, areas south of Lakeville were not considered and included in the study. Mr. Thompson responded that because of_the lack of density and low rate of job growth south of Lakeville, the area wasn't determined to be a primary, focus of the study. ' Motion 07.14 Comms. Tushie/Erickson mo?ieSi to accept the Maxfield Research Senior and Workforce Housing Market Analysis and Demand Estimates for Lakeville,.,. MN report -.and forward it to the City Council. Motion carried unanimously.:::... 4. Presentation of Business Telecommunications Technology Task Force (BTTTF) Recommendations . Adam Kienberger,along with Ben Coons and Comm. Gehrke presented the findings of the BTTTF Repork to the EDC Two.t~ey paints from the report include: • That Lakevtllo.. views its business community as a whole including home- .:;based businesses, worka{-home employees and traditional work places • The City should actively explore, conduct feasibility, negotiate and pursue the use'of current„public/private assets for the creation of a municipal commons with opencompetitive provider participation - an Open Network Mr. Mielke mentioned his discussions with the High Performance Partners (HiPP) group in Dakota County and suggested that a possible solution could involve a County-wide effort to leverage both resources and general population mass. He also noted that different communities are pursuing similar initiatives for their own needs and motives. 2 Economic Development Commission Meeting Minutes November 27, 2007 Mr. Coons described his experience when he attended a presentation of the Utopia open network constructed in Utah. Mr. Mielke also added that the current .telecommunications providers aren't making the necessary investments in fiber infrastructure because of a longer return on investment. The City needs to have along-term view and approach to this issue. Mr. Bornhauser noted that Lakeville is in a unique situation'as a community that is only approximately two-thirds developed. This allows far a lower capital cost to construct a network. Chair Matasosky added that there is no apparent downside to moving ahead with the feasibility study outlined in the report. Comm. Gehrke concluded that there is only downside ~n:-:not moving ahead. Motion 07.15 Comms. Emond/Tushie moved to`accept the report of the BTTTF and forward it to the_City Council. Motion carried unanimously. 5. Review CDA Redevelopment Grant Application Mr. Olson reviewed the proposal to submit) an application for a Redevelopment Incentive Grant to the Dakota County `CDA in the amount of $200,000 for improvements to be constructed in Downtown Lakeville as part of the "Market Park" project. Comm.,Erickson no#ed that this was a wonderful opportunity to move forward with the effoirfis c~u#Eined in ~he,Downtown Development Guide without leveraging private prope~y tax revenues Motion 07.16 Comt°i1s. Tusfrie/Erickson moved to recommend submittal of the Dakota,:;County CDA Redevelopment Incentive Grant application and forward this recommendation to the City Council. Motion carr~ed'unanimously. 6. Review Recommended 2008 CDBG Application Activities Mr. Olson reviewed the proposed 2008 CDBG application activities. The City is required to submit its 2008 Community Development Block Grant (CDBG) application to the Dakota County CDA by December 31, 2007. It is anticipated that the City will receive $103,500 in 2008 which is the same amount that was received in 2007. The CDA is continuing its requirement that 50% of a City's 3 Economic Development Commission Meeting Minutes November 27, 2007 activities to be funded with CDBG funds involve activities that benefit Low-Moderate Income (LMI) households. Mr. Olson concluded that staff is recommending a funding level of $51,750 for the Home Rehabilitation Loan Program and $51,750 for the Downtown Code Improvement Program. Motion 07.17 Comms. Smith/Emond moved to accept the 2008 CDBG application and forward it on to the Gity Council. Motion carried unanimously. 7. Review final strategic work areas and goajs;fior the 2008-209,0 Strategic Plan for Economic Development Mr. Kienberger reviewed the proposed Vision, Missrp'n, Organizatiariat:-befinition, Strategic Work Areas and Goals, and Outcemes identified by the EDC over the past several meetings as well as the City Council at the October 22"d Joint Work Session. Motion 07.18 Comms. Schubert/Brantly moved to recommend submittal of the 2008-2010 Strategic Plarrfor .Economic.. Development and forward the recommendation to . the City C©uncil. Motion carried unanimously. 8. Director's Repb~'~`" Mr. Olson reviewed-the Directot'sReport. The EDC expressed their compliments on the success of the October 24t~ Manufacturers Luncheon held at the Holiday Inn & Suites. 9. Adjourn The meeting was adjourned at 7:00 p.m. Respectfully submitted by: Attested to: Adam Kienberger, R. T. Brantly, Secretary Economic Development Specialist 4 p' N®. City of Lakeville ' ~ Community and Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steven Mielke, City Administrator David L. Olson, Community & Economic Development Director Date: January 18, 2008 Subject: Election of Officers The February 22, 1994 Resolution Confirming and Defining the Purpose, Responsibilities and Terms of Office for the Economic Development Commission state that "at the first meeting of the year, the Commission shall elect a Chairperson, Vice Chairperson and Secretary from amongst its appointed members to serve for a term of one year." EDC members re-elected Jack Matasosky as Chair, Barry Pogatchnik as Vice Chair and Bob Brantly as Secretary for 2007. Commissioners are asked to elect officers to serve the 2008 year. City of Lakeville ~ Community and Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steven Mielke, City Administrator David L. Olson, Community & Economic Development Director Date: January 18, 2008 Subject: Summary of 2007 Development Project Feedback Surveys As a result of the 1995 Strategic Plan for Economic Development, the City each year conducts a "survey of business after the development process for feedback." The surveys are sent to developers and owners of commercial and industrial projects after they have received a certificate of occupancy for their project. The plan also called for an annual report on survey results during the first quarter of the following year. Four measures of satisfaction are addressed in the survey. These include: 1. Were questions answered to the respondent's satisfaction? 2. Whether the respondent felt informed and up-to-date on City procedures. 3. Whether staff responded in a reasonable amount of time. 4. Rating the overall service received during the development process. In addition, respondents were asked to provide comments to the City to continually address the needs of businesses during the development process. In 2007, the City sent out 50 survey letters for which 18 responses were received. In 89% of the surveys that were returned respondents indicated that their questions were answered to their satisfaction and in most instances rated the services they received as good or excellent. In comparison to the results from the 2006 survey, the level of favorable responses for questions numbers 2, 3 and 4 increased while there was a slight decrease in satisfaction for question number 1. It should be noted that the number of surveys returned was only 18 compared to 26 in 2006. Because of such a low response rate and fewer total surveys mailed out this year, a small number of responses can have a greater impact on the overall outcome of the survey. While the responses to the surveys returned were favorable overall in 2007, staff will continue these efforts including the mailing of surveys for projects completed in 2008. A copy of the survey and a detailed breakdown of responses dating back to 2000 are included. t Development Project Feedback Survey Please fill in the highlighted areas for our records BUSINESS NAME: DATE: CONTACT PERSON: PHONE PROJECT NAME: DESCRIPTION OF PROJECT: 1. Were questions regarding the development process answered to your satisfaction (understanding)? Yes No If no, please explain: 2. Were you or the person in charge of the development project kept up-to-date with City procedures (i.e., staff development review, public hearing before Planning Commission, City Council review, etc.)? Excellent Good Satisfactorily Poorly Not at all Additional Comments: 3. If you had questions or concerns regarding your development project, did you feel City staff responded within a reasonable time frame? Yes No If no, please explain: 4. Perhaps your contact with the City regarding your development project was with one or more staff. Did you feel that the overall degree of service was: Excellent Good Satisfactorily Poor Additional Comments: 5. The City would like to know how the development process could be handled better. Your suggestions are appreciated and will be considered in order to increase responsiveness to business needs. 6. Would you like us to contact you to discuss your concerns? Yes No Please mail your response using the enclosed stamped, addressed envelope. Thank you. 2007 Development Survey Comments 1. Were questions regarding the development process answered to your satisfaction (understanding)? a. "No. The bathroom requirements were confusing. The inspector should know the background on why specific requirements." b. "No. The design review process caused a delay and complete redesign of the building. This process caused a lot of people to lose valuable time and money." 2. Were you or the person in charge of the development project kept up-to-date with City procedures (i.e. staff development review, public hearing before Planning Commission, City Council review, etc.)? a. No Comments 3. If you had questions or concerns regarding your development project, did you feel City staff responded within a reasonable time frame? a. "Time frame was slow but answers and responses were able to be modified or adjusted to allow project to move smoothly." 4. Perhaps-your contact with the City regazding your development project was with one or more staff. Did you feel that the overall degree of service was: Excellent, Good, Satisfactorily or Poor? a. "Excellent. Dale, and the rest of the staff were very helpful. Thank you!" b. "Poor. The city Engineer (Staff engineer) was condescending and rude. Unwilling to work with design team unless we just did it his way. Very unacceptable." c. "Good. Bldg. Dept. was excellent to work with. Eng. Dept. and Utilities were a little difficult to please. Only because it seemed we worked with one person and were given different info from another." 5. The City would like to know how the development process could be handled better. Your suggestions are appreciated and will be considered in order to increase responsiveness to business needs. a. "I thought it was great. Everybody involved didn't waste ay time help me (Thanks)." b. "The City was very good to deal with. I was pleased with the prompt reviews and inspections." a "All city staff should introduce themselves when visiting a particular site. We've had several occasions where a building official has come on site without indicating who he was or the nature of his visit." d. "Process went well, can't think of what could be improved." e. "From my perspective, everything went fine. The people I talked with all did a great job of customer service." f. "Overall a very pleasurable experience. Great Job Lakeville." g. "Thanks. I considered this project a huge success! Thanks to the City for your assistance." L ~ O O } N 3 O. w O a d o w 0 w > - ~ n m CI ~ m ~ N N N ~ w C D_ ~ C a y ~ O C ~ l0 N d d N N N O ~ O Y w~ o' LL C N C N N m m 3 w e w 0 ~ N N l0 ~ N fO U ~ O N O N > ~ C~ U -C N U N _ ~ e L C O w C rA V o o U o y 0 o L_ o M N C 0 3 N N L O p O O U N o O O o N U N U) (Oj ~ C ~ N X ~ } X N N ~ c0 } W~ ~ o N W o ~ w M. \ \ O O N a ~ \ O fn d ~ W O ~ aD O D_UZ ~ U ~ O ~O ao mC~ oN~ ~ mC~ U ~ ~ o O O O O Y O a C ` C -O O _ O ~ ~ O ~ p ¢ 3 N ~ Q d U N U w D o N N N X w N X N N 3 N N M, 0 3 w o °o mQ ~ o w o o m ~O N ~ c0 O d~ Z ~ Z p~ 0 (n Z } - N N h L In Q O Z O ~ p y c c O _ _ ~ _ _ ~ ¢ N _ LO N ~ N o N Z U Q U N ~ U C ~ N p~ X Q y } X y N 0 3 W O y0 Q O O¢ W O ~ N O Z [n Z Z Z ~ N c0 O M o U O } 01 N. of C7 c-7N O~ OCR N U N ~ H N L O O O U p h C A C O ~ O O O O Q N o N N U N U N U (0 u! U ~p C O> } X w N X y- N M, c W~ D'.N-.Q } Q W~ O NQ E m O> O o D O f0 ~ c O. c 0 O f0 ~ d c0 0 ~ o acnz ~ zz ~ o acnz o } a0 C9 ~ a0 1~ O) ~ V O) C7 ~ M N U N O C N C M ~ O N U N ~ O d X N U C .O N } W } W N N N O O O O ~0 0 p~ } <O ~ (7 o U` U Q 0 ~ T C T y N - O ~ O d O N N U N N U N O N K ~p N U N N } W O N } W ~ > p ° L7 ~ O o a N N N O O ~ U O I~ O ~ O } M W O M c0 C~ N Z O ~~m No. City of Lakeville ~ ~ Community and Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steven Mielke, City Administrator .David L. Olson, Community & Economic Development Director Date: January 18, 2008 Subject: 2007 Development Summary The City of Lakeville continued to grow and experienced moderate levels of development activity in the commercial, industrial and residential sectors in 2007 with the City issuing building permits with a total valuation over $140,000,000. Included in the valuation is the construction of 425,000 square feet of new commercial development including: Best Buy, Bremer Bank, Cub Foods, FamilyHealth Medical Clinic -Lakeville, Train America, the new Lakeville Police Station, New Market Bank, Platt Dentistry and Porterhouse Steak & Seafood. The City also issued permits for 35,600 square feet of new industrial development that took place in Airlake Industrial Park in 2007. This included the construction of the Airlake South Creek Business Park, amulti-tenant office/warehouse development. Some upcoming projects in 2008 include development of new industrial space by First Industrial in their First Park Lakeville project, a new 57,000 square foot Brunswick Zone family entertainment center, and the start of construction on the new County Road 70/I-35 interchange project. Residential development continued to slow in 2007 with building permits issued for 183 new single-family homes with a total valuation of $48,703,000. The trend continued in the townhome, condo and twinhome market, resulting in 119 permits being issued with a valuation of $17,475,000. An apartment building permit with 76 units having a valuation of $5,950,000 was also issued. A presentation of the 2007 Economic Development highlights will be made to the City Council in February. a~em No. ~ City of Lakeville ' ~ Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 18, 2008 Subject: Discussion of 2008 Work Program for 2008-2010 Strategic Plan for Economic Development Attached is a copy of the 2008-2010 Strategic Plan for Economic Development that was approved by the City Council on December 17, 2D07. Starting on page 17 of the plan are the approved goals and outcomes for this new three year plan. Also included in this plan are suggested years that specific goals in the plan would be pursued during the three-year plan. The following are specific goals that staff recommend be pursued as part of the work plan for 2008 (Year 1): Transportation O Complete the County Road 70 Interchange O Participate in the development of transit in Lakeville Life-cycle Housing O Help the City achieve reasonable and realistic housing goals that balance the need for different housing types for residents. Technology O Advocate for Lakeville to become a leader in telecommunications services. Growth Management O Continue to define and provide the information future businesses and developers need in order to decide to locate in Lakeville. O Provide input on the Comprehensive Land Use Plan O Analyze the viability of additional office park locations in Lakeville Communication O Create a single effective message/platform about economic development Partnerships O Develop and enhance partnerships whenever possible to achieve EDC goals. Staff is seeking comments and/or feedback from EDC members on these recommended goals to be pursued in 2008. Once consensus is reached as to the specific goals to be pursued in 2008 (Year 1), staff will develop a more specific work plan for each of these goals over the next 1-2 months. ~~em No. ~ City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 18, 2008 Subject:. January.. Director's Report The following is the Director's Report for January of 2008. EDC Re-aoaointments In December the City Council approved the following reappointments of current EDC members: Jack Matasosky -Three Year Term Jeanie Schubert -Three Year Term Jerry Erickson (Alternate) -One Year Term Congratulations to these existing members and behalf of staff, we look forward to continuing to work with the re-appointed as well as current members of the EDC in 2008. The City Council has not made any decisions on the appointment of a new member to replace Steve Gehrke who resigned at the end of 2007. Steve was recognized for his service on EDC by the City Council at the annual Board and Commission appreciation event that was held on November 28th at the Art Center. Building Permit Resort The year end building permit summary was addressed in a separate memo included with this packet. New Commercial Develouments The City Council has recently authorized Alternative Urban Areawide Review (AUAR) for proposed industrial park development at the southeast corner of Dodd and County Road 70. First Industrial has purchased a 140 acres parcel from the Ruddle family at this location and is proposing up to 1.4 million square feet of industrial development on this site. The AUAR is an environmental review that is required by state law because of the size of the proposed development. Upon completion of the AUAR, a preliminary and final plat of the property will need to be processed by the -City. First Industrial plans to commence construction for this proposed development in the spring, with one or possibly two buildings to be constructed this year. The proposed 154 unit senior assisted and independent living housing project proposed by Welsh Companies and Walker-Methodist adjacent to the new St. Johns Lutheran church on 202nd Street is tentatively scheduled for a public hearing at the Planning Commission in February. The plans for this project anticipate construction commencing by late summer. The Train America athletic training facility being constructed east of Lakeville South High School adjacent to the new clinic constructed by Northfield hospital is nearly completed. This new building will house athletic training facilities for baseball and softball, basketball, tennis, gymnastics, along with a sports and physical therapy facility to be operated by Northfield Hospital. Dakota Electric Partners in Progress Event Dakota Electric has scheduled their annual Partners in Progress event for Thursday, March 13t" starting at 4:30 p.m. at the Royal Cliff in Eagan. 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Welcome to the Dakota-Scott Workforce bavestmenr Resources for Vetera~tts Board's (W'1B) News and Notex This newsletter's There are many WorkForce Center, County, State and purpose is to provide you with an update of workforce Federal resources available for Vets. For example, the and economie development activities. State expanded the eligibility for the State Dislocated Worker Program to include returning Vets and their s ouses. October Unemployment -Dakota 3.8%; Scott 3.8% Employment Programs- Contact Workforce Center staff It was 4.1% for the State and 4.4% nationally. a~ctu~.mttwfc.ore/Dakota lino:/lwww.deedstate.mnus/Imi/toolsltauslGaoeSelect.aanx Dakota County Veterans Services-651554-5601 http~/hvv<~cv co dakota.mn.us/HealthFami]v/Assistin2Veterans/ Legislative and Awards Breakfast default.htm The WIB's Legislative and Awards Breakfast is 7:30 a.m., Scott County Veterans Services-952 496-81.76 Friday, Tan. 25~h at the Northern Service Center. The htto://www co Scott mn.us/v<Ps/aortal/ShowNewsletter?CSF= following awards will be given: 925&CST=escA15227 ? Dakota Electric Excellence in Youth Employment LinkVet -The Linkage Line makes it easier for Vets and their Services Award families to find services and ensure immediate crisis ? Minnesota Palley Electric Youth Employment Services intervention. htto://www.mdvastate.mn.us/LinkVet.htm Award Minnesota GI Bill -Provides postsecondary educational ? Friend of Workforce Development Award assistance to eligible Minnesota Vets and to the children and ? Business Champion Award spouses of deceased or severely disabled Minnesota Vets. ? Bob Killeen Award htto•/hvww.minnesotaveteran.ore/education/MNGIBiILhtm Information -The MN Department of Veterans Affairs offers electronic newsletters to keep you informed of Vet issues. Eye on the Future htto•//wtt'cv.mdvastate.mn.us/newsletter.htm December's WIB meeting topic was "Talking About our Generations - a personal guide to mastering generational diversity in the workplace. " Presented by Dena Tuscben January Jamp Start For Job Seekers and John Bower of Express Personnel Services, the Event is Jan. 31" a[ [he Northern Service Center. Dr. presentation was a fascinating look at the differences Verna Price is the keynote speaker, presenting the Power among Traditionalists, Baby Boomers, Gen-Xers and of People. Workshops include: Millenials. Entrepreneurship 101 htto://www.mnwfc.ore/dakota/wib/e~nthefuture.htm • Veterans Reintegration & Employment Services • Foreclosure, What Everyone Should Know • Tough Interview Questions, Panel Discussion Reaching More Citizens Through Libraries Aow to Get and Use Labor Market Information Thanks to the WIB, computers and software will be added . Networking W the Prior Lake and Belle Plaine libraries. This wdl . 15-Minute Resume Critiques increase public access to on-line resources for career Free tickets are available at the WorkForee Center exploration, job search and resume writing. reception desks in Burnsville, Shakopee and West St. Paul. Contact Helene at 651-554-5908 for more information. Employers -Looking to Hire? Free site to post jobs - www.minnesotaworks.net Get Jobs, Job Fair -March 20'" -Contact Mike Panda (952 2008 Workforce/Workpluce Forecast 895-7614) htto:;/Nev.mnw•fe.ore/Dakota/iobfair/index.htm From the Herman Trend Alert, topics include: • Recruitment in a Tightening Labor Market Employer of the Day -www.mrnvfc.a•g/dakota/bod/index.hdm • More Employers will Focus on Metrics • Leadership Deficit Becomes More Apparent Welcoming Customers With Disabiliries Lack of succession Preparation "AL Your Service: Welcoming Customers with • More Employers Accommodate Older Workers to Disabilities" is a free, self-paced web course about Maintain Intellectual Capital working with customers who have disabilities. • More Awareness of the Link between Economic and http://www.wiawebwursi;.ore Workforce Development htto://www.hermanerouo.com/alert/archive 12-12- 200Zhtml Page 1 of 3 Olson, David From: Carol Walsh [StateOfMinnesota@ngwmail.des.state.mn.us] Sent: Tuesday, January 15, 2008 12:25 PM To: Olson, David Subject: Employers Shed 2,300 Jobs in Dec If you cannot read this message. please click here ft r Communications Office ~ Weh site: www.deed.state.mn.us Rhone: 651-297-1192 or 1-800.657-3858 • Fax: 651-215.3849 For Immediate Release Contact: Jo Iverson, 651-259-7165 January 15, 2008 Jo.Iverson~astate.mn.us Minnesota's Employers Shed 2,300 Jobs in December State unemployment rate reaches 4.9 percent; slightly below national average ST. PAUL -Minnesota 's employers shed 2,300 jobs in December, according to data released today by the Minnesota Department of Employment and Economic Development (DEED). The state's December unemployment rate is 4.9 percent, while the national unemployment rate hit atwo-year high of 5.0 percent. Minnesota now has 2,768,100 non-farm jobs. The state's employers have experienced anover- the-year decline of 353 jobs, which reflects a downward revision of November's jobs by 1,400. This is the first time the measure has entered negative territory since March 2004. The national OTY job growth rate is currently 0.9 percent. "These figures are disappointing, but Minnesota appears to be part of a broad, national economic slowdown," said DEED Commissioner Dan McElroy. "Minnesota 's employment numbers are affected by national trends in the declining housing market and related industries, high energy prices and declining consumer spending." Construction led all sectors for the month, adding 1,500 jobs. Led by strength in the insurance industry, Financial Activities grew by 400 jobs, while Education and Health Services gained 100 jobs. Minnesota continues to outpace the nation in over-the-year job gains in Education and Health Services and Financial Activities. Declines in December occurred in eight of 11 broad industry groups. Manufacturing led 01/17/2008 Page 2 of 3 declines and was down 1,400 jobs. In manufacturing, medical device and machine shop manufacturing continued to be strong, but transportation equipment, food and wood products pulled the sector down. Also, Leisure and Hospitality was down 1,100 jobs, Government was down 800 jobs and Professional and Business Services was down 400 jobs. Seasonally Seasonally Not seasonally Not seasonally adjusted adjusted adjusted adjusted Unemployment December November Rate 2007 2007 Minnesota 4.9% 4.4% U.S. 5.0% 4.7% Employment December November Dec '06-Dec '07 Dec'06-Dec'07 2007 2007 Level Change Percent Change Minnesota 2,768,100 2,771,800 -400 0.0% U.S. 138,495,000 138,477,000 1,270,000 0.9% Over The Year Employment Growth by Industry Sector (NSA) OTY Job OTY Growth Rate US OTY Change Growth Rate Total Non-Farm -353 -0.0 0.9 Natural Resource & 66 L2 4.6 Mining Construction -4,472 -3.6 -2.9 Manufacturing -11,665 -3.4 -1.5 Trade, Trans & Utilities -391 -0.1 0.6 Information -1,283 -2.3 -0.2 Pinancial Activities 393 0.2 -0.3 Prof & Business Services -733 -0.2 1.8 Ed & Health Services 14,027 3.4 3.1 Leisure & Hospitality 3,370 1.4 2.8 Other Services -1,738 -1.5 0.5 Government 2,073 0.5 1.2 New Reporting Schedule for 2008 DEED will release employment data for 2008 according to the schedule below. In addition to the statewide employment data that DEED typically highlights, next year's releases will now incorporate regional employment data as well. These data will represent the following Bureau of Labor Statistics Metropolitan Statistical Areas: State of Minnesota; Minneapolis and Saint Paul, MN /Wisconsin Metropolitan Area; Duluth, MN /Superior, WI Metropolitan Area; Rochester, MN Metropolitan Area; and St. Cloud Metropolitan Area. 01/17/2008 Economic Development Commission 2008 Meeting Schedule Month Date January Tuesday, Janua 22, 2008 February Tuesda ,February 26, 2008 March Tuesday, March 25, 2008 A ril Tuesday, A ri122, 2008 May Tuesda ,May 27, 2008 June Tuesday, June 24, 2008 July No Meeting August Tuesday, Au st 26, 2008 Se tember Tuesday, September 23, 2008 October Tuesday, October 28, 2008 November Tuesday, November 25, 2008 December No Meeting • All meetings begin at 5:00 p.m. in the Lake Marion Conference Room at City Hall unless otherwise noted on the meeting schedule. * All meetings are held on the fourth Tuesday of the month unless otherwise noted.