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Home My WebLink About5a. May Economic Development Report City of Lakeville Community Development Memorandum To: Economic Development Commission Kati Bachmayer, Economic Development Manager Tina Goodroad, Community Development Director Justin Miller, City Administrator May 26, 2026 Economic Development Report This memo is intended to provide information on new and expanding businesses, proposed development projects and economic development-related events. Club Pilates South opened at 20137 Idealic Avenue in late March. This is a second Lakeville Location; the first can be found 16106 Pilot Knob Rd, Ste 130. During the April 6 meeting, the City Council approved: • Dodd Commons final plat, which proposes a new fire station and three outlots located north of 179th Street (CSAH 9), south of Dodd Boulevard and east of Granby Lane. • Heritage Commons 11th Addition final plat, which proposes two convenience restaurants with drive-thru service windows to be located north of 202nd Street (CSAH 50), east of Dodd Boulevard (CSAH 9) and south of Heritage Drive. • Heritage Commons 12th Addition final plat, which proposes one building with two convenience restaurants (one with a drive-thru) to be located north of 202nd Street (CSAH 50), east of Idealic Avenue and south of Heritage Drive. • Lakeville 35 Logistics Center South Addition preliminary plat and conditional use permit proposing a multi-tenant 171,000-square-foot industrial office/warehouse building. During the April 20 meeting, the Lakeville City Council adopted an interim ordinance to temporarily prohibit approval of new residential development applications for a residential plat, subdivision, comprehensive plan amendment or rezoning request for a period of up to one year. This temporary pause allows the City time to study impacts of the Metropolitan Council's Imagine 2050 regional planning document and its impact on Lakeville's current 2040 plan, as well as allow the City time to update its comprehensive plan to meet the requirements of 2050 regional planning policies. Note: This moratorium only applies to new residential applications, so any preliminary plat already approved or under the current review process will proceed. There are approximately 1,300 single-family and townhome lots already approved by the Lakeville City Council and housing construction will continue as usual during the interim period. The ordinance does not apply to commercial or industrial development projects. During the May 4 City Council meeting, preliminary plat and conditional use permit applications were approved for Globus Business Park. The project is proposing an 81,100- square-foot industrial office/warehouse building to be located south of Juniper Way (CSAH 70), and at the terminus of Kenrick Court, east of Kenrick Avenue. During the May 18 meeting, the City Council approved: • Lakeview Bank was featured during the May 18 City Council meeting as part of Community Development’s Spotlight on Business program. Visit the City of Lakeville’s YouTube channel to view the video. • A Conditional Use Permit for Kueber Coffee (aka 7 Brew) to operate a drive-thru coffee shop in the Marketplace at Cedar development, located at the southeast corner of 179th Street (CSAH 9) and Cedar Avenue (CSAH 23). The facility will be approximately 898 square feet with a double drive-through lane and no indoor or outdoor seating. • Phase 2 bids for construction of the new Fire Station 2, located at the northeast corner of 179th Street and Granby Lane. Phase 2 covers the station building and all site improvements. Phase 1 (earthwork/utilities) was approved May 4. • Preliminary plat and CUP for Interstate South Logistics Park Fourth Addition. The plat creates two industrial lots on 37.9 acres located south of 215th Street (CSAH 70), east of Jacquard Avenue, and north of 217th Street • MN Loon Dispensary was issued a building permit for a tenant remodel at 8337 210th Street West. • Beltone Hearing Center was issued a building permit for a tenant remodel at 17563 Glasgow Avenue. • Farmer's Cellar was issued a building permit to build-out an event room space at 8333 210th Street West. • Midwest FlexSpace was issued a second building permit to construct its second garage condo. When complete, the project will include 98 garage condos for sale or lease. • Several building permits were recently issued to Recycling Zone Plus to construct a household hazardous waste and recycling drop off center for Dakota and Scott Counties at 10125 217th Street West. A project kick off celebration was held on April 29. • A building permit was issued on May 19 to construct a 2,372-square-foot quick-serve restaurant building with a drive-thru on the NE corner of 202nd Street (CSAH 50) and Dodd Boulevard (CSAH 9) in Heritage Commons. Construction continues on: • Lakeville Family Pet Clinic’s new two story, 9,030-square-foot animal clinic to be located at 7275 175th Street West. • Chase Bank’s 3,395-square-foot office building at 20176 Idealic Avenue. • Dakota Electric Association’s Energy Center, comprised of 215,000 square feet of office, warehouse, storage and maintenance facilities, to be located at 6919 225th Street West. The City has issued building permits with a total valuation of $122,594,748 through April. This compares to a total valuation of $108,644,234 for building permits issued through April 2025. The City issued permits for 80 single-family homes through April with a total valuation of $26,939,422. This compares to 86 single-family home permits through April 2025 with a total valuation of $30,116,542. The City has also issued 122 townhome permits with a total valuation of $30,296,358 through April, compared to 73 townhome permits with a total valuation of $17,885,12 during the same period in 2025. Four apartment permits for Wildwood Townhome development have been issued through April, totaling 51 units and valued at $7,774,546. Lakeville ranked #1 in April for Twin Cities residential building permits and #2 year-to-date according to Housing First Minnesota. Visit LakevilleMN.gov for more information on year-to- date building permit totals. Mayor Luke Hellier and Community Development Director Tina Goodroad delivered the 2026 State of the City address during a Lakeville Chamber of Commerce luncheon on April 8 at Brianno's Chart House. During the event, Chamber President Krista Jech also provided an update on Lakeville Works. The presentation is available to view via StoryMap and YouTube. The City of Lakeville recently launched a new, modernized Interactive Development Map. The map is a free resource for Lakeville residents to discover "what's being built over there?" and has information (including meeting packet links) on development projects that are proposed, approved and completed. Visit LakevilleBusiness.com/developmentmap to learn more. The U.S. Small Business Administration's Office of Advocacy hosted a roundtable on April 29 to hear from Lakeville business leaders about the federal regulations, requirements and burdens that negatively affect their day-to-day operations. Here are three ways your business can engage with their office: 1. Call the Red Tape Hotline (800-827-5722, option 3) 2. Email your concerns to RedTape@sba.gov 3. Fill out the Red Tape Complaint Form The types of issues businesses are encouraged to report to the Red Tape Hotline include regulations that are costly, confusing, or outdated; permitting or licensing delays; duplicative or conflicting rules; and excessive paperwork or unclear federal guidance. A groundbreaking ceremony for the new Fire Station #2 was held on May 18. The site is located north of 179th Street (CSAH 9) and south of Dodd Boulevard, near the Lakeville Central Maintenance Facility. Leadership Lakeville wrapped up on May 20 with a bus tour of the City and a graduation ceremony. Applications for the 2026-27 cohort are available now on LakevilleChamber.org with a deadline of June 30. • Lakeville’s Interactive Development Map includes information on development projects. • Thrive! Business Newsletter is distributed monthly and includes development updates and helpful business resources. • City of Lakeville YouTube channel for Thrive! videos and other city news.