HomeMy WebLinkAbout6. 2023 Economic Development Annual Report
2023 Economic Development
Annual Report
2023 Economic Development Annual Report 2
About Lakeville, Minnesota
The ideal combination of historic charm and modern convenience,
Lakeville is a thriving city comprised of family-oriented neighborhoods,
vibrant businesses and successful community partnerships. Working
together, education, commerce and local government have built a
dynamic city that offers a wide array of shopping, housing and business
development opportunities. Our parks, lakes and award-winning
schools are alive with countless cultural, recreational, educational and
leisure activities. Lakeville is ideally positioned for easy access to the
Twin Cities’ numerous regional amenities and attractions. From a
historic downtown to industrial and high-tech business parks, Lakeville
continues to attract quality growth while maintaining the small-town
feeling and high quality of life that makes it exceptional.
Community Values
Diversified Economic Development We value the stability and independence provided by a strong,
diversified local economy.
High Quality Education We value and are committed to high quality education that sets us apart.
Safety throughout the Community We value living in a community where people feel safe everywhere
they go.
A Home for All Ages and Stages of Life We value living options for people of all ages and stages of life.
A Sense of Community and Belonging We value the sense of belonging that comes from openness to
others, and we honor the traditions and institutions that have made us the community we are today.
Design that Connects the Community We value a well-designed community, and we place a priority
on development that enhances connectivity and accommodates our changing needs.
Access to a Multitude of Natural Amenities and Recreational Opportunities We value
widespread access to nature, the outdoors, and all types of recreational opportunities.
Good Value for Public Services We value high quality public services delivered cost-effectively.
Lakeville Demographics
Population: 74,553*
Population change since 2020: 7.3%*
Daytime Population: approx. 57,000*
Median Household Income: $129,069*
Median Home Value: $446,500^^
Median Age: 38*
Unemployment in Lakeville: 1.5%**
Number of Businesses in Lakeville: 1,531^
Number of Jobs in Lakeville: 21,291^
ISD 194 Student Enrollment: 11,800***
Lakeville is the largest city in Dakota County, 7th largest in the metro and 9th largest in Minnesota.^^^
*U.S. Census Bureau **MN DEED, Local Area Unemployment Statistics
***Lakeville Area Schools, ISD 194 ^^ Dakota County
^MN DEED, Quarterly Census of Employment and Wages ^^^Metropolitan Council
3 2023 Economic Development Annual Report
Residential Growth
The City of Lakeville experienced another busy year of development activity in 2023, issuing building
permits with a total valuation of $257.1 million. The City issued 470 residential permits in 2023 and
309 of those were single-family homes. The average building permit value on a 2023 single-family
home was $294,236. According to Minnesota Housing First, Lakeville ranked second in the
Minneapolis-St. Paul metropolitan area for residential permits behind Woodbury; followed by
Rosemount, Blaine and Cottage Grove. Lakeville was ranked #1 in the metro from 2013-2022.
In 2023, Lakeville saw the completion of The
Pillars of Lakeville (100-unit, senior), Suite Living
Senior Care (32-unit, senior assisted) and BeeHive
Homes of Lakeville South (24-unit, senior
assisted). Construction started on Authentix
Lakeville (252-unit, rental townhome) and a final
plat was approved for Estoria Lakeville (91-unit,
senior co-op). The City issued 58 detached and 94
attached townhome permits and 9 multi-family
(252 units) permits.
470
309
560
325
747
527
0
200
400
600
800
Residential Permits Single-Family Permits
Residential Development
2023 2022 2021
477
470
317
311
257
0 100 200 300 400 500 600
Woodbury
Lakeville
Rosemount
Blaine
Cottage Grove
Residential Metro Permits
Source: Minnesota Housing First, December 2023
171
472
471
263
305
91
391
197
47
43
66
98
147
63
164
91
204
405
260
100 200 300 400 500 600 700 800 900 1000
2023
2022
2021
2020
2019
Lakeville Platted Units
Single Family
Attached Townhouse
Detached Townhome
Multifamily
252
58
309
94
0
50
100
150
200
250
300
350 Residential Permitted Units
APARTMENTSINGLE FAMILYDETACHED THTOWNHOME
4 2023 Economic Development Annual Report
Commercial and Office Development
The private sector invested $97.6 million into commercial and industrial park development in Lakeville in 2023 and
the largest permitted project was Sweet Harvest Foods, valued at $16.2 million.
New Businesses and Business Milestones
• Swing Lab Performance Golf
o The business hosted a ribbon cutting ceremony on February 3 at
20721 Holyoke Avenue in downtown Lakeville. The golf training
facility offers golf lessons, club fittings, memberships and junior
programs.
• Resilience Martial Arts
o The business completed construction on its tenant remodel at 17630 Juniper Path in February. The
martial arts studio offers jiu-jitsu, Muay Thai, tae kwon do and youth boxing.
• Boba & Tea
o The business held its grand opening on March 15. The tea shop is located at 16690 Cedar Avenue, next
to Ole Piper Restaurant, and serves a variety of bubble tea and coffee drinks.
• Baldy’s Tailgate Bar
o The restaurant opened in February and held a ribbon cutting ceremony on March 17. The business
completely remodeled its interior space and expanded the outdoor patio at 20944 Holyoke Avenue in
downtown Lakeville.
• E + M Company
o The business opened in downtown Lakeville in May at 20730
Holyoke Avenue, Suite 105. The women's boutique offers online and
in-store shopping.
• Premium Moving Services
o The business held a ribbon cutting ceremony on May 24 to celebrate
opening at 7652 215th Street West in Lakeville and specializes in
residential and commercial moves.
• Bubble Barn Express Car Wash
o The business held a ribbon cutting on June 2 to celebrate its grand opening. The car wash is located at
17453 Dodd Boulevard and offers individual car washes and memberships.
• Wendy’s
o The restaurant, located at 17610 Kenrick Avenue, completed an interior remodel in June.
• Family Chiropractic + Wellness
o The business held a ribbon cutting ceremony on June 27 to celebrate
its expansion at 17502 Dodd Boulevard.
• Minnesota Hospice
o The business held a ribbon cutting event on July 20 at 17645 Juniper
Path and provides routine home care, respite care and general
inpatient care.
• Nexus of Hope Psychiatry & Mental Health Wellness
o The clinic held a ribbon cutting ceremony on August 1 to celebrate opening at 10527 165th Street West
and offers treatments for attention deficit hyperactivity disorder, anxiety, depression and post-
traumatic stress disorder.
5 2023 Economic Development Annual Report
• HealthSource Chiropractic of Lakeville
o The business held a ribbon cutting and re-grand opening event on
August 8 at 17725 Kenwood Trail, Suite 3 to celebrate its newly
remodeled space and 10 years in business. HealthSource offers a
variety of chiropractic care and spinal decompression therapy.
• Next Step Dance Studio
o The dance studio opened in August at 17645 Juniper Path, Suite 100
and offers both recreation and competition dance classes.
• Shaking Boba
o The business opened in August at 7694 160th Street West and sells bubble teas and shaved ice.
• Board & Brush Creative Studio
o The business held a ribbon cutting ceremony on September 25 to celebrate its new ownership. The
studio is located at 20770 Holyoke Avenue in downtown Lakeville and offers personalized sign
painting workshops.
• New Creations Child Care
o The business has completed construction and held a ribbon cutting ceremony, along with an open
house, on September 26. The new childcare center is located at 17401 Dodd Boulevard and offers
programming for infants, toddlers and preschool age children.
• YMCA Early Childhood Learning Center
o The business, located at 16331 Kenrick Avenue, held a carnival on
September 26 to celebrate its five-year anniversary in Lakeville. The
YMCA ECLC offers care and education options for infants, toddlers,
preschool and pre-kindergarten children.
• Taco Bell
o The restaurant, located at 17750 Kenwood Trail, completed
construction on its interior and exterior remodeling in October.
• You Glow Girl
o The spa opened in October at 17400 Kenwood Trail, Suite 204 and offers facials and anti-aging
treatments.
• Gold Tree Flower Shop
o The business opened at 16285 Ipava Avenue and sells floral arrangements and gifts.
• Mother Earth Motors
o The business opened at 16079 Buck Hill Road and offers pre-owned electric vehicles for sale.
• Action Behavior Center
o The business completed work on its interior remodel of 20890 Kenbridge Court in October and
provides autism therapy services for children.
• Crystal’s Cuddle Bugs Childcare Center
o The business opened in October at 20044 Kenwood Trail and has a
capacity of 157 infants through school age children.
• FYZICAL Therapy & Balance Centers
o The business hosted a ribbon cutting event on November 3 to
celebrate its grand opening at 17761 Kenwood Trail and provides
orthopedic rehabilitation and balance therapy.
6 2023 Economic Development Annual Report
• McDonald Eye Care Associates
o The business celebrated its 40th anniversary with an open house on
November 8. The eye care center is located at 20094 Kenwood Trail
and offers eye exams, vision evaluations, vision therapy and more.
• Somatic Healing & Alignment
o The business, located at 8500 210th Street West, Suite 120, held a
ribbon cutting ceremony on November 8 and offers massage and
somatic touch therapy.
• SOAR Search Corporation and House of Colour
o A ribbon cutting ceremony was held during the Lakeville Chamber of Commerce Women’s
Symposium on November 14 for SOAR Search Corporation and House of Colour.
• Allina Health Lakeville North Clinic
o The business has opened at 17489 Dodd Boulevard and held a ribbon cutting ceremony on November
17. The new clinic offers primary care and specialty services, including eye care, retail eye services and
mental health services.
• Panda Express
o The business held a grand opening celebration and ribbon cutting
ceremony on November 28. The new restaurant (with drive-thru) is
open at 18455 Kenrick Avenue.
• Scenthound
o The business opened at 17702 Kenwood Trail #104 and celebrated
with a ribbon cutting on December 1. Scenthound offers dog
grooming and routine care services.
• Farmhouse Music Studio
o The business held a ribbon cutting on December 14 at 10523 165th St West and offers piano lessons to
ages 8 and up.
• Planet Fitness
o The business opened in December in the former Best Buy location at 18350 Orchard Trail. The new
fitness center is occupying 20,092 square feet (approximately half) of the building and offers gym
memberships.
• Idioma Coffee Roastery
o The business has opened in downtown Lakeville at 20769 Holyoke Avenue and sells fresh roasted
coffee. A ribbon cutting ceremony was held on December 15 to celebrate.
Jersey Mike’s Subs
o The business opened in December at 18437 Orchard Trail. The restaurant offers hot and cold subs, as
well as catering options.
• Dollar Tree
o The business completed its remodel of the former CVS, located at
17578 Dodd Boulevard, and opened in December.
• ProSkin Laser
o The business completed work on its interior remodel at 10440 185th
Street West in December.
7 2023 Economic Development Annual Report
Under Construction in 2023
• MNGI Digestive Health
o The business was issued a building permit in March for a tenant buildout at 18465 Orchard Trail in
Lakeville Specialty Center. MNGI Digestive Health offers treatment for GI complaints and chronic
digestive conditions.
• Allina Surgery Center and Allina Specialty Clinic
o Allina was issued building permits in April for tenant buildouts at
18465 Orchard Trail in the Lakeville Specialty Center. Lakeville
Specialty Center is a new three-story, 100,000-square-foot medical
office being constructed near Buffalo Wild Wings and Target.
• Regus
o The business was issued a building permit in May to remodel 20731
Holyoke Avenue in downtown Lakeville into private rental office space.
• Goodwill
o The business was issued a building permit in June to construct a new 20,604-square-foot facility to be
located at 11578 207th Street West, just west of ALDI and I-35. This location will replace the existing
store when the project is complete.
• LBC on the Lake
o The business was issued a building permit in July to locate its seasonal restaurant facility in Antlers
Park. The restaurant will be open, along with the newly remodeled park, in 2024.
• PetSuites
o The project was issued a building permit in September to construct a new 11,000-square-foot facility at
18440 Orchard Trail.
• Johnny Ringo’s
o The business was issued a building permit in November to build out
its restaurant space at 8333 210th Street West, with a proposed
indoor capacity of 77 people and an outdoor patio space in the back
of the building.
Approved Projects in 2023
• Airlake 70
o In May, the City Council approved Airlake 70 First Addition final plat, which proposes the
construction of a 276,480-square-foot cold storage warehouse facility to be located east of Cedar
Avenue and south of future 215th Street (County Road 70).
8 2023 Economic Development Annual Report
Industrial Park Development
Apple Auto Group
• New 58,550-square-foot automotive
service, repair and sales facility
• First standalone Ford commercial
vehicle service center
• Grand opening on June 22
Dick’s Sanitation
• Building permit issued in November
to construct a 3,360-square-foot
addition onto its existing building
• Existing refuse hauler expanding in
Lakeville
Old Dominion Freight Line
• 43,300-square-foot building in Launch
Park completed in 2022
• LTL freight shipping and logistics
• Open house on June 21
Sweet Harvest Foods
• New 360,000-square-foot office
warehouse
• Existing natural sweetener business
expanding in Lakeville
• Groundbreaking ceremony held on
June 1 to kickoff construction
$63,253,742
$106,076,214
$94,573,248
$104,094,002
$97,625,461
50
60
70
80
90
100
110
120
2019 2020 2021 2022 2023MillionsCOMMERCIAL & INDUSTRIAL PERMIT VALUATION
Valuations include Building, Electrical, Mechanical, Plumbing and Sewer & Water Permits
9 2023 Economic Development Annual Report
Lakeville Business Employment
The number of jobs in Q2 of 2023
was 21,291, a 2% increase from 2022
and 33% increase in the last decade.
When 2020 data is removed,
Lakeville has had historically steady
increases in employment and
positive business growth.
Unemployment
In November 2023, Lakeville saw the
unemployment rate decrease to 1.5%. In
comparison, Dakota County’s
unemployment rate for the same period
was 1.7%, Minnesota’s was 1.9%, and the
United States’ unemployment rate was
3.5%.
Department Accomplishments
The City of Lakeville’s Building Inspections Department was named 2022 Building Department of the
Year by the Association of Minnesota Building Officials (AMBO). The award was presented during the
AMBO general membership meeting.
The Community & Economic Development Department launched a new economic development tool: the
Commercial and Industrial Zoning Districts Map. This map identifies the zoning and underlying zoning
in Planned Unit Development areas for all commercial and industrial areas in Lakeville. Users can learn
about land ownership and zoning districts at LakevilleBusiness.com/BusinessZoningMap.
Maxfield Research & Consulting completed Lakeville’s Comprehensive Housing Needs Assessment in
July. The study projects housing demand from 2023 through 2040 and provides recommendations on the
amount and type of housing that could be built in Lakeville to satisfy demand from current and future
residents over the next decades and beyond. The report can be found at LakevilleBusiness.com under
Housing Resources.
In fall 2023, the City of Lakeville launched a new Community & Economic Development website to help
small businesses, developers and site selectors find the information they need to thrive in Lakeville.
LakevilleBusiness.com is a one-stop location for information related to available properties,
demographics, development activity, small business resources and more.
2.3%
3.3%
1.8%1.6%
1.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
2019 2020 2021 2022 2023
Lakeville Unemployment Rates
15,374
15,973
16,624
17,170
17,207
17,240
17,848
15,927
19,194
20,882
21,291
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Lakeville Business Employment
Source: Minnesota Department of Employment and Economic Development, Quarterly Census of
Employment and Wages. Data from Q2 of each year.
Source: Minnesota Department of Employment and Economic Development, Labor Market
Information Office, Local Area Unemployment Statistics, November data
10 2023 Economic Development Annual Report
HKGi completed its Downtown Lakeville Parking Needs Assessment to address current and future
parking demands in downtown Lakeville. The final report includes strategies to meet the needs of a
variety of parking users and downtown businesses, including the proposal of a new trailhead, improved
sidewalks, crosswalks, pedestrian-scaled landscaping and lighting and new wayfinding signage.
In late 2023, the City of Lakeville adopted a residential rental registration ordinance. The purpose of the
ordinance is to build strong partnerships with rental property owners. More information about this
program is available at LakevilleBusiness.com/RentalRegistration.
Looking Ahead
Daryl Morey, Planning Director retired on January 12, 2024, after 35 years of working for the City of
Lakeville. With this retirement comes a restructuring of city departments. Tina Goodroad, Community
Development Director now leads a new Community Development Department that includes planning,
economic development and building inspections.
The Economic Development Commission will undergo a strategic planning process in 2024. The strategic
plan provides guidance and a vision for the future of Lakeville’s economic development as the city
continues to grow. An update to the Downtown Development Guide will take a look at Lakeville’s vibrant
downtown commercial area to provide valuable market information and a vision for its current and future
needs.
Approximately 300 acres is still available for commercial development in the city, including property near
Hy-Vee grocery store on Pilot Knob Road, property near the Holiday Inn off I-35 and County Road 70,
and Heritage Commons on County Road 50 and Dodd Boulevard. And more than 600 acres of industrial
land are available for development, including sites in Interstate South Logistics Park (off County Road 70
and Dodd Boulevard) and Launch Park (off Cedar Avenue and 220th Street West). Learn more at
LakevilleBusiness.com.
To stay up to date on what’s happening in the City of Lakeville, sign up for the Thrive! Newsletter, check
out our interactive development map at LakevilleBusiness.com/developmentmap and follow the City of
Lakeville on social media.
Tina Goodroad, Community Development Director tgoodroad@lakevillemn.gov
Kati Bachmayer, Economic Development Manager kbachmayer@lakevillemn.gov
LakevilleBusiness.com