HomeMy WebLinkAbout3b. 2024 Economic Development Annual Report FINAL
2024 Economic Development
Annual Report
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: 76,243*
Population increase since 2020: 9.7%*
Daytime Population: approx. 59,500*
Median Household Income: $138,119*
Median Home Value: $451,150^^
Median Age: 37.4*
Unemployment in Lakeville: 2.4%**
Number of Businesses in Lakeville: 1,603^
Number of Jobs in Lakeville: 21,852^
ISD 194 Student Enrollment: 12,021***
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
Residential Growth
The City of Lakeville experienced another busy year of development activity in 2024, issuing building
permits with a total valuation of $257.8 million. The City issued 435 residential permits in 2024 and
285 of those were single-family homes. The average building permit value on a 2024 single-family
home was $310,086. According to Minnesota Housing First, Lakeville ranked second in the
Minneapolis-St. Paul metropolitan area for residential permits behind Woodbury; followed by Maple
Grove, Rogers and Cottage Grove. Lakeville was ranked #1 in the metro from 2013-2022.
In 2024, the City issued 100 detached and 49
attached townhome permits and 1 multi-family
(89 units) permit. Applications for Kenyon Green
(49-unit workforce apartment & 15 rental
townhomes) and Crown Lakeville Apartments
(182 units, market rate) received preliminary
approvals this year. Lastly, Estoria Lakeville held a
groundbreaking ceremony in September to
kickoff construction of its 89-unit senior
cooperative for adults 62 and over.
435
285
470
309
560
325
0
100
200
300
400
500
600
Residential Permits Single-Family Permits
Residential Development
2024 2023 2022
452
435
394
391
328
0 100 200 300 400 500
Woodbury
Lakeville
Maple Grove
Rogers
Cottage Grove
Residential Metro Permits
Source: Minnesota Housing First, December 2024
263
471
472
171
205
63
147
98
66
210 88
47
197
391
91
171
405
204
89
167
100 200 300 400 500 600 700 800 900 1000
2020
2021
2022
2023
2024
Lakeville Platted Units
Single Family Detached Townhome
Twin Homes Attached Townhouse
Multifamily
89 100
285
49
0
50
100
150
200
250
300 Residential Permitted Units
AP
A
R
T
M
E
N
T
DE
T
A
C
H
E
D
T
H
TO
W
N
H
O
M
E
Commercial and Office Development
The private sector invested $75.1 million into commercial and industrial park development in Lakeville in 2024 and
the largest permitted project was the RL Cold cold storage facility, valued at $32 million.
New Businesses and Business Milestones
• Action Behavior Centers
o The business hosted a ribbon cutting ceremony on January 17 at
20890 Kenbridge Court. ABC provides applied behavior analysis
autism therapy services for early learners, school-age children and
teens to achieve success on the spectrum.
• Goodwill
o The business hosted a ribbon cutting ceremony on January 19 at 11578 207th Street West. The new
20,000-square-foot facility replaced the former location that was near Juniper Commons.
• ProSkin Esthetics & Laser
o The new medspa held a ribbon cutting ceremony on February 15. The business is located at 10440
185th Street West #300 and offers a variety of skincare services, including specialty facials.
• You Glow Girl
o The business held a ribbon cutting celebration on March 1 at 17400 Kenwood Trail, Suite 204. The
business offers a variety of skincare services, including specialty facials.
• Appelhof, Pfeifer & Hart, P.A.
o The family law office hosted a ribbon cutting ceremony in downtown
Lakeville on March 22 at 20856 Holyoke Avenue.
• Children’s Minnesota Specialty Center
o The business was issued a building permit in April to expand its
clinic at 18432 Kenrick Avenue into the neighboring tenant space
and the remodel was completed in June.
• MN THC Co.
o MN THC Co. (formerly Natreum Lakeville) hosted a ribbon cutting on April 25 to celebrate opening at
16085 Buck Hill Road. The business sells CBD and THC products.
• Anytime Fitness
o The business held a ribbon cutting ceremony on April 30 to celebrate remodeling its gym space located
at 17811 Kenwood Trail.
• Cedar Lake Outdoors
o The made-to-order outdoor patio furniture business hosted a ribbon
cutting ceremony on May 7 at 10880 175th Court West, Suite 220.
• Allina Surgery Center and Allina Specialty Clinic
o The business hosted a ribbon cutting celebration on May 16 at 18465
Orchard Trail in the newly opened Lakeville Specialty Center. Allina
is now offering a variety of health services at this location, alongside the
Allina Health Surgery Center, Allina Health Minneapolis Heart Institute and Allina Health
Neuroscience, Spine and Pain Institute.
• MNGI Digestive Health
o The business held a ribbon cutting ceremony on May 16 at 18465 Orchard Trail in Lakeville Specialty
Center. MNGI Digestive Health offers treatment for GI complaints and chronic digestive conditions.
• Exuberance Chiropractic
o The business held a ribbon cutting event on May 21 to celebrate its new location at 17830 Kenwood
Trail. With the expansion, the chiropractic clinic is now able to offer new services and has plans to
open an event center in the back of the building.
• LBC on the Lake
o The new seasonal restaurant held a ribbon cutting celebration on
May 22 at 20135 Ipava Avenue to launch its first year at the newly
renovated Antlers Park. The business is open May-September and
sells a variety of food and beverage items.
• Goldfish Swim School
o The business hosted a ribbon cutting event on June 4 at 20198
Heritage Drive. The swim school offers weekly swimming lessons for children aged 4 months to 12
years.
• F3 Lounge & Event Center
o The new event center held a ribbon cutting ceremony on June 11 at 17830 Kenwood Trail. The small
event space is located in the back of the Exuberance Chiropractic building and can accommodate up to
100 guests.
• TGK Automotive Specialists
o The business opened in June in the former Big O Tires building at 17900 Kenwood Trail. TGK offers
full-service tire and auto repair.
• La Michoacana Purépecha
o The ice cream shop hosted a grand opening celebration on June 15.
The business is located inside Walmart at 20710 Keokuk Avenue in
the former Subway space.
• Niche Books
o The independent bookstore held a ribbon cutting ceremony on July
17 at 20784 Holyoke Avenue in downtown Lakeville. The business sells new and used books, as well as
gift items in-store and online.
• Midwest Ear, Nose & Throat Specialists
o Davis Healthcare Real Estate held a groundbreaking ceremony on July 22 to kickoff development of its
14,000-square-foot medical office building at 11020 161st Street West. When complete, the building
will be occupied by Midwest Ear, Nose & Throat Specialists.
• Donut Star
o The donut shop hosted a ribbon cutting celebration on July 31 at
7656 160th Street West in the Lakeville Crossing Shopping Center.
• Taco Bell
o The new restaurant with drive-thru opened on August 14 at 20681
Keokuk Avenue, near Emagine Lakeville Theater. This is the third
Taco Bell in Lakeville.
• Lakeville Dental Associates
o The business held a 50th Anniversary celebration on August 22 at 20171 Icenic Trail to commemorate
the Lakeville Dental Associates’ 50-year milestone.
• Kyiv Cakes
o The Ukrainian bakery hosted a ribbon cutting ceremony on August 23 to celebrate its grand opening at
17697 Kenwood Trail. The business sells breakfast pastries, a variety of desserts and custom cakes.
• PetSuites
o The business held a ribbon cutting ceremony on September 19 at
18440 Orchard Trail in its new 11,000-square-foot building. PetSuites
offers dog and cat boarding, daycare, grooming and training.
• The Asylum
o The fine line tattoo studio hosted a ribbon cutting event on September
20 at 20779 Holyoke Avenue, Suite 100.
• Borrowed Blooms
o A ribbon cutting ceremony was held during the Lakeville Chamber of Commerce Women’s
Symposium on November 12 to recognize several Lakeville businesses. Borrowed Blooms creates
custom wood flower arrangements for sale or by subscription.
• Cookie Cruiser
o A ribbon cutting ceremony was held during the Lakeville Chamber of Commerce Women’s
Symposium on November 12 to recognize several Lakeville
businesses. Cookie Cruiser sells handmade ice cream sandwiches out
of a custom-built cart and can be booked for special events.
• Karing Waves PEMF Therapy
o A ribbon cutting ceremony was held during the Lakeville Chamber of
Commerce Women’s Symposium on November 12 to recognize
several Lakeville businesses. Karing Waves provides PEMF therapy to
people, horses and pets to relieve pain and reduce inflammation.
• My Girl, LLC
o A ribbon cutting ceremony was held during the Lakeville Chamber of Commerce Women’s
Symposium on November 12 to recognize several Lakeville businesses. My Girl offers concierge
neurotoxin treatments and ear piercing.
• Vacation Mode Travel Agency
o A ribbon cutting ceremony was held during the Lakeville Chamber of Commerce Women’s
Symposium on November 12 to recognize several Lakeville businesses. Vacation Mode specializes in
all-inclusive vacation experiences and customized itineraries.
• Kinmount Exteriors
o The business opened in late 2024 at 17769 Juniper Path and offers
residential and commercial roofing, siding and gutter installation.
• Uptown Cheapskate
o The upscale consignment store hosted a ribbon cutting ceremony
and grand opening celebration on December 5 and is located at 7598
160th Street West.
• Viva Vitality
o The anti-aging and integrative health clinic held a ribbon cutting event on December 12 to celebrate
opening in downtown Lakeville at 20765 Holyoke Avenue.
• Farmer’s Grandson Eatery
o The business began serving a variety of food options in the Amoco gas station at 8333 210th Street West
in late December. FGE is anticipated to open an adjoining speakeasy in spring 2025.
Under Construction in 2024
• Post Consumer Brands
o The business was issued a building permit on January 5 to remodel its first and second floor office
space at 20802 Kensington Boulevard.
• UrgentVet
o The after-hours urgent care pet clinic received City Council approval for its conditional use permit in
March to operate a veterinary clinic at 17698 Kenwood Trail. The business has been issued a building
permit to remodel the tenant space and is anticipated to open in spring 2025.
• Post Pet Food
o A tenant improvement building permit was issued to Post Consumer Brands in May for their new pet
research and development pilot plant to be located at 21370 Heywood Ave. Post’s company portfolio
includes Rachael Ray® Nutrish®, Kibbles ‘n Bits® and 9Lives® dog and cat food and the pilot plant will
perform research and development for their pet food division.
• Northland Collision
o The business was issued a building permit in July to construct a 3,828-square-foot addition onto its
existing building at 7430 160th Street West.
• Salvation Army
o The Salvation Army announced it will be opening a thrift store and donation center at 17625 Kenrick
Avenue (in the former Goodwill location). The business began accepting donations in Lakeville in
October.
• Kenwood Commons
o Construction began on a 6,523-square-foot commercial office building located at 9057 203rd Street to
be called Kenwood Commons in fall 2024. When complete, the new facility will include three office
suites for lease.
• Swing Lab Performance Golf
o The City Council approved Swing Lab Performance Golf's on-sale malt liquor license during its
November 18 meeting. The business plans to serve beer and food that can be prepared in a microwave
or convection oven when its minor remodel is complete.
Approved in 2024
• Recycle Zone Plus
o Dakota County’s preliminary plat and conditional use permit applications were approved by the City
Council on January 16 for North Ryan Second Addition, which proposes the development of Recycle
Zone Plus, a new 17,770-square-foot recycling facility to be located south of County Road 70 and west
of Jacquard Avenue. When complete, the proposed facility will be in partnership with Scott County.
• Lakeville 35 Logistics Center
o During the October 21 City Council meeting, preliminary plat and conditional use permit applications
were approved for Lakeville 35 Logistics Center North Addition. The project proposes construction of
a 189,678-square-foot industrial office/warehouse building to be located north of Juniper Way/215th
Street (County Road 70) and south of 210th Street West.
Industrial Park Development
Dalsin Industries
• Ribbon cutting celebration on April 9
• Custom metal fabrication & design
• Lakeville shop is highly automated
RL Cold
• Groundbreaking ceremony on May 7
• Future 276,000-square-foot cold
storage facility
• Designed for one or multiple users
Sweet Harvest Foods
• Ribbon cutting ceremony on June 25
• New 360,000-square-foot
office/warehouse facility
• Natural sweetener manufacturer
selling honey and agave
Jacquard Distribution Center
• New 168,000-square-foot multi-tenant
industrial warehouse
• Clear height 36 feet
$106,076,214
$94,573,248
$104,094,002
$97,625,461
$75,103,385
50
60
70
80
90
100
110
120
2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
COMMERCIAL & INDUSTRIAL PERMIT VALUATION
Valuations include Building, Electrical, Mechanical, Plumbing and Sewer & Water Permits
Lakeville Business Employment
The number of jobs in Q2 of 2024
was 21,852, a 3.9% increase from
2023 and 31.4% 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 2024, Lakeville’s
unemployment rate was 2.4%. In
comparison, Dakota County’s
unemployment rate for the same period
was 2.7%, Minnesota’s was 2.9%, and the
United States’ unemployment rate was
4.0%.
Department Accomplishments
The Residential Rental Registration program saw its first full year of implementation after being launched
in late 2023. The City currently has over 650 rental properties registered. Registration is free and the form
can be found at LakevilleBusiness.com/RentalRegistration.
The Economic Development Commission (EDC) participated in a strategic planning process to update
the City's Strategic Plan for Economic Development. The EDC worked with Ehlers over the course of
several months to identify goals, strategies, actions and success measures. The new plan was adopted by
the City Council in late 2024 and will serve as a guide for the City's economic development efforts for the
next four years.
Lastly, Community Development staff partnered with the Lakeville Chamber of Commerce on Leadership
Lakeville’s relaunch in 2024. Leadership Lakeville is a nine-month program that provides participants
insight into the City of Lakeville’s varied departments and processes, along with professional leadership
growth on a monthly basis.
Looking Ahead
In 2025, Community Development staff will begin a new Business Retention & Expansion (BRE) program
in partnership with the Economic Development Commission and Chamber of Commerce. This program
was identified in the 2024-2028 Economic Development Strategic Plan and entails monthly business visits
3.3%
1.8%
1.6%
2.4%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
2020 2021 2022 2023 2024
Lakeville Unemployment Rates
15,973
16,624 17,170
17,207 17,240
17,848
15,929
19,194
20,883
21,309
21,852
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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
with a goal of fostering and building strong relationships with the Lakeville business community and
providing resources and assistance as needed.
The 2024-2028 Economic Development Strategic Plan also included a short-term action item to conduct
an industry cluster analysis study, which will help identify target industries for attraction to complement
and support the City’s existing commercial and industrial businesses. The City plans to hire a consultant
to engage local stakeholders and conduct market research for this study.
In addition, the City has plans to update its 2018 Downtown Development Guide to review and update
the City’s vision and strategic initiatives for Downtown Lakeville. Lakeville has seen significant growth
over the past seven years is looking to refine its goals for this area. The City of Lakeville will hire a
consultant to engage local stakeholders in the planning process.
Over 100 acres are 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/BusinessZoningMap.
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