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HomeMy WebLinkAbout03-27-07 City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, March 27, 2007, 5:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order. 2. Approve February 27, 2007 meeting minutes 3. Continued review and discussion of proposed Sign Ordinance revisions - Daryl Morey, Planning Director 4. Review of 2007-2011 Capital Improvement Program -Keith Nelson, City Engineer and Dennis Feller, Finance Director 5. Director's Report 6. Adjourn Attachments: February Building Permit Report Workforce Investment Board News and Notes Economic Development Association of MN -Legislative Policy for 2007 Dakota Countv becomes a healthcare provider battleground, Minnesota Real Estate Journal, March 1, 2007 Chianti Grill restaurateurs move to Lakeville market, Minnesota Real Estate Journal, March 9, 2007 Public partnership. or corporate blackmail?, Pioneer Press, March 15, 2007 City of Lakeville Economic Development Commission Meeting Minutes February 27, 2007 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Pogatchnik, Tushie, Brantly, Emond, Schubert, Gehrke, Erickson, Vlasak, Ex-officio member City Administrator Steve Mielke, Ex-officio member Chamber of Commerce Executive Director Todd Borarhauser. Members Absent: Comm. Smith. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist; Daryl-'Morey, Plannmg.Director. 1. Call Meeting to Order. r Chair Matasosky called the meeting fo order~t 54~1~.m. in the Marion Conference Room of City Hall, 20195 Holyo,Jc^e Avenue, Lakev~l~; Minnesota. 2. Introduction of new EDC Memo Da~~;lasak ~f~ 3. Approve January 30, 2007 Meetmg~Amutes f Motion 07 04 ;;nmS. En~kson/Poga~ehnik moved to approve the minutes of the ;~~~~anuary 3Q, 2007 Ming as presented. Motion carried '~"~nammous~y,.~ ~ 4. Review D~scussi~~'"'~~f Proposed sign Ordinance Changes Mr Nlorey revie~'~the'ttleta?orandum prepared by Dan Licht of NAC, the City's planning consultant ir~ardmg proposed changes to the City's sign ordinance. v~~ The EL'~~;,members ire shown examples of different types of signs around Lakeville'asd Mr. Molrey added that the proposed changes were primarily impacting sandwich fsoards, rat `estate signs, miscellaneous temporary signs, and balloon si ns. ~t - 9 xf:.,_=, Several Members asked questions about the limits on for sale/lease signs for existing buildings and how that could have a negative impact on area businesses. Mr. Morey responded that existing buildings would be grandfathered in under the new proposed ordinance and would still be able to advertise space for sale/lease on an independent free-standing sign in accordance with the zoning code. New buildings would be required to utilize an additional 32 square feet on a current monument sign for advertising space for sale/lease. Economic Development Commission Meeting Minutes February 27, 2007 Comm. Gehrke asked if the additional allowed space on a new free-standing sign would be able to advertise other items when not in use for advertising space for sale/lease. Mr. Morey responded that the additional allowed space on new free-standing signs would be reserved exclusively for space for sale/lease signage. Chair Matasosky inquired about the current legality of residential real estate open house and similar signs. Mr. Morey responded that these signs have always beexf„illegal and are enforced if they are in the right-of-way and pose a safety or traffic.haiar~. Mr. Morey explained the current rules for permitting a temporary sign and noted that by eliminating temporary signage, enforcer~entvvould be easier i1~e to the ability to easily identify illegal signage. Mr. Mielke added that one of the reasons fo~sale/lease signs are being addressed in this sign ordinance amendment is because some signs are left up permanently even after a space is fully leased 4 wJ { % Comm. Tushie asked about the potential s4~papt of stgr~s, located within businesses that are visible from outside. * Mr. Morey stated,that~the signordinance does not restrict signage within a business unless the srgnag~'visible to. the outside can be perceived as a public safety issue, i.e. flashing stri~~e etc. f~;~ Comm,,;Bxantly aslted ~f fhe proposed', t~rdinance would eliminate neon or other illumtrraGfod{st ris.r. g M~ Olson respond that only electronic signs with changeable copy are being proposed to be e1~rainated: `The exceptions to this are gas prices and time/terr3perature bankgns. Mr. Bornhaiiser sta#etl` that if all of the existing buildings in Lakeville are grandfathered ;arf render the proposed ordinance, not much is truly being accomplished in"addressing current problems with signage. Chair Matasosky stated that for sale/lease signs are important for businesses because a lot of calls are still generated from signs. Comm. Tushie inquired about developing a community standard and specifications for sale/lease signs. 2 Economic Development Commission Meeting Minutes Febroary 27, 2007 Mr. Mielke responded that it would be difficult because the intention of the proposed changes in the ordinance is to become content neutral, and this would also likely apply to colors. Chair Matasosky added that this would be an undue hardship on a business that takes a downturn and needs to lease out some space to keep their business viable. Comm. Pogatchnik stated that the proposed ordinance doesn't really clear out the existing problems. r~* Comm. Brantly added that temporary signs are not part of;the common good of the community. *~~a=: r. Comm. Tushie also noted that most temporary"and portable s'igr~age goes against Lakeville's corridor design study that was dorm;: several years ago ;fir. Mr. Mielke summed up the discussion by stating that a sign ordmance~ra~ould try to balance taste and regulation. The EDC members'should look at various signs X",.r. around town and submit comments to City staff ~nntt~rr"the next couple of weeks. 5. Review of 2006 Economic Devetvpmettt Annual"1F~"eport Mr. Olson reviewed the 2006 Economic Deveiop~ent Annual Report and noted that it would be presented ttf~,~ity Council at3heir M~r~h 5, 2007 meeting. 6. Director's Report" " Mr Olson reweuv~l~ the Dtre~etc~{'s,Report and highlighted the Cub Foods project that was approved at the F~bfry 20~`"200~ City Council meeting. 7. Ad~~~n , ~ Th~m~` eeting was adjo ned aY=~S p.m. Respe~~ily submit by: Attested to: ~ %s,.,, Adam Kienberger R. T. Brantly, Secretary Economic Development Specialist 3 ~y,.SYI~ N0. 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 Daryl Morey, Planning Director Date: March 23, 2007 Subject: Continued Review and Discussion of Proposed Sign Ordinance Amendments Staff presented information to the EDC at the February meeting regarding proposed sign ordinance amendments dealing with commercial/industrial property real estate (for sale or lease) signs, sandwich board signs, temporary portable message board signs and balloon signs. There was considerable discussion at the EDC meeting regarding some of the potential difficulties and hardships that would result from the proposed changes dealing with commercial/industrial for lease and for sale signs. Since the February meeting, staff has had numerous discussions regarding how the proposed amendments for this type of signage could be made more workable for commercial and industrial properly owners. It is the consensus of staff that the original amendments proposed for this type of signage that would require new buildings to incorporate space for this type of signage in their permanent free-standing monument or pylon signage may not be feasible. As a result, staff is recommending that the sign ordinance remain "as is" for these type of signs. Regarding, sandwich board type signs, temporary portable message board signs and balloon type signs, the February 23, 2007 memo from Dan Licht of NAC proposes language that would allow for sandwich board type signs to be used in commercial districts subject to certain requirements. The current sign ordinance does not allow for these types of signs. Staff is recommending that this language be incorporated into the Sign Ordinance. Staff is also recommending that the existing provisions allowing temporary portable message board signs and balloon signs be removed from the ordinance which would result in portable message board and balloon signs no longer being allowed in the city. A recommendation from the EDC regarding these proposed Sign Ordinance changes will be forwarded to Planning Commission for discussion at a future work session. Attachment ' NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 plannersC~nacplanning.com MEMORANDUM TO: David Olson / Daryl Morey FROM: Daniel Licht, AICP DATE: 23 February 2007 RE: Lakeville -Sign Ordinance Revision NAC FILE: 336.00 - 06.01 BACKGROUND The Planning Commission initiated a discussion of the Sign Ordinance based upon the input of the City Attorney regarding the implications of the recent Court decisions in the cases involving the Cities of Eden Prairie and Hopkins related to First Amendment content issues. City staff, the City Attorney and our office reviewed the City's existing sign regulations, the effects of the Hopkins and Eden Prairie lawsuit decisions and the need to draft revisions to the Sign Ordinance. A draft ordinance amending the Sign Ordinance was reviewed by the Planning Commission at a work session on 19 October 2006 with direction to proceed with a public hearing to consider the proposed changes. A public hearing was opened at the 7 December 2006 Planning Commission meeting to consider the proposed amendments and continued to the Planning Commission meeting on 18 January 2007 to allow an opportunity to solicit additional input from those potentially affected by the proposed amendments. After further discussion at their meeting on 18 January 2007, the public hearing was closed and the Planning Commission recommended by a 7-0 vote approval of the proposed ordinance amendment with modifications addressing concerns raised by the Lakeville Area Chamber of Commerce. In recommending approval of the majority of the proposed Sign Ordinance amendment, the Planning Commission directed that there be review by the Economic Development Commission regarding temporary portable message board signs, balloon signs, sandwich board signs and commercial/industrial real estate (for lease) signs. The City Council considered the proposed Sign Ordinance amendment at their meeting on 5 February 2007 and voted to approve the amendment, which included a provision prohibiting new electronic changeable copy signs for all uses (except for motor fuel pricing), by a unanimous vote. Staff and the City Council recognized an inconsistency in allowing electronic changeable copy signs for public or quasi-public uses while prohibiting them for business uses. t ANALYSIS Purpose. Signs provide an important medium through which individuals may convey a variety of messages that can also create traffic hazards and aesthetic concerns, thereby threatening the public health, safety and welfare. Lakeville's zoning regulations have, since as early as 1970, included the regulation of signs in an effort to provide adequate means of expression and to promote the economic viability of the business community.. These regulations also protect the City from a proliferation of signs of a type, size, location and character that would adversely impact upon the aesthetics of the community and threaten the health, safety and welfare of the community. Legal challenge. The basis of the legal challenges to sign regulations in the Cities of Hopkins and Eden Prairie was that the ordinances restricted free speech by regulating the content of signs within each City. Although the initial sign permit applications were for billboards not allowed by the respective sign ordinances, the basis of the lawsuits were other provisions dealing with the content of signs. The decision of the District Court in one case was that the definition of various sign regulations based on the content of the sign violated the First Amendment of the Constitution guaranteeing free speech. Because so much of the sign ordinance was based on these defined types of signs, the District Court ruled the entire ordinance unconstitutional. As a result of these rulings, the plaintiff gained the right to construct billboards that would have otherwise been prohibited. Allowed regulations. In order to avoid conflict with First Amendment free speech issues, sign ordinances must only regulate signs on the basis of zoning district, location, area, height, lighting and construction.. Sign ordinances should minimize use of defined types of signs to avoid distinguishing one sign from another based on content. From a zoning perspective, this approach presents a challenge as sign ordinances have evolved to include allowances or exceptions that would generally be appropriate based on the intended purpose of the sign. The intended purpose of a sign, however, ultimately relates to its content creating the potential legal issue. Examples of such signs as previously allowed by the Lakeville Sign Ordinance included real estate and/or subdivision development signs, directional signs, and temporary signs identifying public or quasi public events. It was the allowance of the real estate and subdivision development signs that were specifically challenged in the Hopkins case. Amended Sign Ordinance. Based on the fundamental requirement of content neutral regulations and the specific issues presented by the Hopkins and Eden Prairie law suits, a comprehensive revision of the Sign Ordinance was adopted by the City Council at their meeting on 5 February 2007. The intent of this amendment was to translate the existing sign allowances into a content neutral format. Thus, the number, area and height of signs allowed under the updated Sign Ordinance are for the most part the same as the previous regulations. The specific topics for further discussion include: Sandwich board signs. ¦ Commercial/industrial property real estate (for sale or lease) signs. Temporary portable message board signs/balloon signs. 2 Sandwich board signs. In providing comments regarding the proposed Sign Ordinance amendment, the Lakeville Area Chamber of Commerce asked that consideration be given to allowance of sandwich board signs in front of businesses. These signs were traditionally located in central business districts or pedestrian oriented areas. Some cities have begun making allowances again for these types of signs as part of their sign ordinances. The main issue in doing so is ensuring that the sign does not impede pedestrian access or interfere with use of the public right-of-way when located on public property. City staff offers the following language for consideration to allow sandwich board signs: II-23-I S: GENERAL REGULATIONS: Z. Sandwich. board signs are allowed within commercial zoning districts, provided that: 1. Not more than one (1) sign is allowed per principal building except that one (1) sign is allowed per tenant within a principal building having two (2) or more tenants each with an exclusive exterior entrance. 2. The sign shall only be displayed when the business is open to the public 3. The sign shall be placed only on the business property and shall not encroach into any principal building setback, except within the C-CBD District where the sign may be located upon public sidewalks directly abutting the business property or within required principal building setbacks, and shall not be placed on any vehicle. 4: .The signs shall be located so as to maintain a minimum four (4) foot pedestrian walkway and so as not to obstruct vehicular traffic. 5. The sign shall be setback a minimum of two (2) feet from the back of curb of a public street or private drive aisle. 6. The sign shall conform to the following maximum dimensions: a. Height.• three (3) feet b. Width: two (2) feet a Depth: two (2) feet. 7. The sign shall require issuance of a sign permit annually in accordance with Section 11-23-5 of this Title. 8. In addition to the provisions of Section 11-23-S.C of this Title, the owner of the sign shall provide a certificate of general liability 3 insurance with minimum coverage of $300, 000 naming the City as an additional insured for the sign to be located upon the public right-of--way within the C-CBD District. CommerciaUindustrial real estate signs. In discussing the Sign Ordinance amendment, the Planning Commission raised an issue with the existing allowances for real estate signs for commercial and industrial properties. The Sign Ordinance amendment approved by the City Council on 5 February 2007 carries forward the previous allowances for real estate signs modified only so as to be content neutral. One 64 square foot, eight foot tall sign is allowed per street frontage when a building is offered for sale or lease. The Planning Commission's concern is that these signs essentially can become permanent fixtures on a property inconsistent with the intent of the Sign Ordinance to minimize the number of signs of signs displayed on a property for public safety and aesthetic reasons. To this end, the Planning Commission has suggested a provision be included in the Sign Ordinance allowing additional area upon a permanent freestanding sign for information regarding the sale or lease of a building. City staff offers the following language for consideration of this concept: I1-23-7: PERMIT NOT REQUIRED: F. When a building is offered for sale or lease additional signs or additional sign area shall be allowed provided that• I. Within agricultural/rural districts, residential districts and the P- OSdistrict: a. One (I) sign shall be allowed per street frontage. b. For single family, two family and townhouse dwelling units, no sign shall exceed twelve (12) square feet in area and six feet (6) in height. c. For multiple family and institutional uses, na sign shall exceed thirty two (32) square feet in area or eight feet (8) in height. d. In those cases where a parcel of land exceeds ten (10) acres, no sign shall exceed thirty-two (32) square feet in area or ten feet (10) in height regardless of the use of the property. 2. Within commercial and industrial districts: a. Freestanding signs erected after [EFFECTIVE DATE] make provision for an additional thirty two (32) sguare feet ofsign area to be displayed when a building is offered for sale or lease and no additional sign as provided 4 for by Section 11-23-7.F.2.b of this Title shall be allowed on that street frontage. b. For properties having a freestanding sign for which a sign permit has been issued prior to [EFFECTIVE DATE) or street frontages where no freestanding sign exists, one (1) sign shall be allowed per street frontage and no sign shall exceed thirty-two (32) square feet in area or ten feet (10) in height. Temporary portable message board signs/balloon signs. The initial Sign Ordinance amendment drafted by the Planning Commission would have prohibited temporary portable signs except in the P/OS, Public and Open Space District and balloon signs altogether. The basis for this recommendation is that the intent of the Sign Ordinance specific to commercial and industrial uses is to balance the need for business identification with public safety and desired community aesthetic issues. The Planning Commission reasoned that the permanent signage allowed by the Sign Ordinance provides adequate opportunity for business identification. The use of temporary portable signs typically goes beyond basic business identification to include advertising messages. The Planning Commission considered the use of temporary portable signs an expansion of the number of signs allowed on a property for potential advertising purposes as inconsistent with the intent of the Sign Ordinance. The Planning Commission also noted concerns about the aesthetics of these signs which lack the quality materials, construction and integration into the site design of permanent sign structures. City staff addressed practical concerns with allowing temporary portable signs including requiring permits to be obtained before displaying a temporary portable sign on a property and locating the signs within required setbacks or within required parking stalls. There is also an administrative issue with enforcing the duration for which temporary signs are allowed to be displayed by the Sign Ordinance. Use of balloon signs raised similar concerns for the Planning Commission and City staff. Additionally, use of balloon signs may involve violation of the provisions of the Sign Ordinance prohibiting installation of signs on building roofs, height and area limitations for allowed signs and material and aesthetic quality. CONCLUSION The ordinance amending the City's Sign Ordinance approved by the City Council on 5 February 2007 responds to recent First Amendment legal challenges brought against the Cities of Hopkins and Eden Prairie as well as address several housekeeping issues. This memorandum addresses three areas for additional discussion by the Economic Development Commission and Planning Commission as to recommendations for additional amendments. The Economic Development Commission will discuss these issues at their meeting on 27 February 2007. The Planning Commission will review the Economic Development Commission's recommendation at a future work session prior to holding a public hearing to consider any additional changes to the sign regulations. 5 r A P. ~ t P ~ 3 m -sT City of Lakeville ' ~ Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director ,r/ Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: March 23,2007 Subject: Presentation on 2007-2011 Capital Improvement Program (CIP) The City Council has recommended that City Engineer Keith Nelson and Finance Director Dennis Feller make a presentation of the proposed 2007-2011 CIP to the EDC. Mr. Nelson and Mr. Feller will both be present at the meeting to give an overview of the attached CIP and answer questions EDC members may have. v ~ h1o® 5~ City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Directors Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: March 23, 2007 Subject: March Director's Report The following is the Director's Report for March of 2007. Dakota Electric Partners in Progress Event Dakota Electric Association held its annual Partners in Progress event Wednesday, March 7th at the Royal Cliff in Eagan. EDC members Matasosky and Schubert were able to attend the event. A copy of the brochure prepared by Dakota Electric Association that hi-lights the development activities of its member cities in Dakota County is attached. As the information in the brochure indicates, Lakeville experienced the highest level of commercial and industrial development in the County in 2006 as well as the highest level of residential development. 2007 January Building Permit Report The City issued building permits through the end of February with a total valuation of $14,270,354. This compares to a total of $19,585,013 during the same period in 2006. Included in this valuation were commercial and industrial permits with a total valuation of $4,061,000. This compares to a total valuation of $276,000 during the same period in 2006. The City issued permits for 24 single family homes in through February with a total valuation of $6,668,000. This compares to 38 single family home permits during the same period in 2006 with a total valuation of $12,009,955. The City issued permits for 4 townhomes units through February which compares to 26 townhome permits issued in January of 2006. New Commercial Develouments The City Council approved a new commercial development at the corner of 205tH Street and Kenrick Avenue at their March 19"' meeting. This development will include a new Porterhouse Steak and Seafood Restaurant and new bank building for New Market Bank that will also include a dentist ofFce. A copy of the site plan and copy of the exterior elevations of the two buildings are attached. The Planning Commission at their March 15th meeting approved a new building to be constructed by Hewitt Investments on Holyoke Avenue just north of Erickson Drug. This building is will be occupied by Holly's School of Dance and other commercial tenants. 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VANMAN Architects and Builders na KENRICKCORNER EXTERIORSKETCNES ~.a°.~.~.... °Nor~o~~ary. naoull°s~"zw°svii m ~ aemkkp°mmued 706N9treN ~s'rUCfi ~ ~~mai H~. s.n L~krvN,Mm°wh - al u~anm:..... ..s.e. 41' Y t f ~ _ x r = C, n VI q r 9 n r'; ag i k 3- fy? ~h: iv 9 Y ay. ~ 't ~ x;+ .I ` i ~ Si ~-p ~ .~~~i. e n St c s.. A p 1 Ya i 3 (~S~ ~ f4 g.~v Dakota-Scott Counties Zak ra-5rot~ Workforce Investment Board News and Notes WoxkPoree Fnve¢rmentBwrd .Ian.-Feb. 207 EdltlOn, 1'Ol. ~l-6 wx, m.v,.~w, r..ro-t=~ tex Providing comprehensive, professional, and timely services for jobseekers and employers. Welcome to the Dakota-Scoa Coratties Workforce 10 Fastest Growing Occupations and Wages 7nvesfinent Board's (WIB) News and Notes. This ThrOUgh 2014 newsletter's parpose is to provide yos with an repdate of physicians Assistants 53.7% $37.83 workforce and economic devetopnrent activities. Network Systems & Data Comm. 52.8% $34.38 Home Health Aides 51.7% $10.64 WIB Updates Computer Software Engineers 47.4% $37.72 • LaDonna Boyd was recently honored with the Forest Biomedical Engineers 45.3% $35.29 Glewwe award from the River Heights Chamber of Medical Assistants 42.3% $13.89 Commerce. Personal and Home Care Aides 42.1% $10.36 • Next WIB meeting is Mar. 16`s, at the Northern Service Medical Scientists 42.0% $25.82 Center. Eye on the Future speaker is Ruth Krueger, who Athletic Trainers 41.0% $17.77 will speak about poverty in Dakota County. Dental Hygienists 38.1% $31.27 (Source: DEED) Deeember Unemployment Rate 3.6 % in Dakota; 3J% in Scott Utilities Facing Employee Shortage The December unemployment rate (unadjusted) was 4.2% According to Melinda Mehrhoff, Dakota Electric for the state and 4.3% nationally. Association, many workers in The utilities seotor will be httv://wrvvsv.deedstate.nm.us/Imi/tools/loos/disolav.asli?eeoe=2704 retiring in the next five years and fewer skilled applicants are coming from the high schools and post secondary EVe on the Future sectors. As a result, dislocated workers with transferable Thanks to Bill Coleman for a fascinating presentation on skills are being sought by energy and utility companies. Economic Development .101. The presentation (along with previous Eye on the Future topios) is at Tob Fair - OnIV a Few Spots Left htto://www.mnwfc.ore/Dakota/wi6/eveonthefuture.htm "Get Jobs Job Fair" is March 22"d in Eagan. There are only a few spots left for exhibitors. Get the details at "Shift Happens" htto://www.mnwfc.ore/dakota/iobfair/index.htm If you're interested in globalization and how the U.S. stacks up with China and India, check out this 6-minute Funding Available for Employers -Incumbent video presentation from Lyle Wray. Worker Training htro:/,%wtvwscottmclcod.ur2/didvouknow.wmv http~//www.mnwfc.or¢/dakota/iwp.htm Great Speakers Highlight Business Events Speaker's Bureau Dakota Future recently held an event featuring outstanding The WIB now has a speaker's bureau available to speak to speakers including Dr. Eric Jolly, Science Museum of MN; your business or community group. Presentations are Rick King, Thomson Publishing; James Beal, iCentera; available about employer service, county and/or city Robert Juncker, Gearworks; and Jon Wikstrom, Cool employer demographics and/or WorkForne Center Clean Technologies. www.dakotafuture.com services. Contact Mark at 651 554-5622. Mike Veeck, St. Paul Saints owner and author of Fun is Cood -How to Create Joy and Passion in the Workplace Successful January Jllmp Start and Your Career, was a speaker at a recent Hastings Area Approximately 130 people attended the 5th annual January Chamber of Commerce event. Veeck's humorous Jump Start Jan. 11'" at the Northem Service Center. The presentation provided examples on how to inject fun into event featured Jackie Pflug as the day's motivational the workplace. www.funis2ood.net speaker and numerous workshops all geared to "jump- start"job seekers' cazeer searches after the holidays. Resource Room Surveys from the event provided feedback on the WorkForce Center Resource Rooms are where anyone can workshops as well as some demographic information. Of use computers and other amenities to write resumes and the 62 respondents, 21%have been unemployed more than cover letters and search and apply for job openings on-line. 7 months. Management and clerical/administration The number of visitors in Dec. at each of our three sites: occupations had the highest representation of participants. West St. Paul - 2,824; Burnsville - 1,699; Shakopee - 845 ~ ECONOMIC DEVELOPMENT ® ® ASSOCIATION OF MINNESOTA x. 4f a "'.~ep.j~ gs .M a~ ~ x } i y t ~ ~vu4 t „ x t u~ x:, ~ c. r w. ~ s•' ~ f s+ 4 3 1 t~ "C r 'y w WHO IS EDAM? L INCREASE TRANSPORTATION INVESTMENT The Economic Development Association of Minnesota (EDAM) is a statewide association representing more than Issue: 500 public and private sector professionals involved with In the 21 st century, Minnesota companies compete on aworld- implementing state, regional or local economic development wide basis. It is essential that they have easy access to [heir initiatives. production inputs (both labor and materials) and be able to move [heir products [o mazket quickly and efficiently. Over Oux legislative policies are shaped by members' unique [he past 19 years inflation has eroded the value of the 20 cent experience and understanding of the tools and tactics that are per gallon gas tax to a point where it is worth only 5.7 cents most effective in positioning and mazketing Minnesota as a per gallon in today's dollazs. location for corporate, small business, housing and com- munity investment. Economic developers generally focus on At present it is estimated [hat there is a shortfall of $1 bi]- financing marketing and implementation strategies for: lion each year in needed transportation investment. In addi- lion, because [he scale cannot provide tfie needed local maCCh, • Developing public infrastructure Minnesota is losing out on millions of federally appropriated • Pacilitating business expansion, job creation, transportation dollars. and redevelopment • Attracting, training and mobilizing a skilled lo- Finally, every dollar raised would stay in Minnesota, going cal workforce into roads [hat are built by Minnesota construction compa- • Addressing local housing needs ?ies that employ Minnesota workers. The result will be an • Marketing Minnesota's benefits as a place to improved transportation system that would make Minnesota live and locate a business companies more competitive globally and benefit the state as a whole. Policy: INTRODUCTION 1. EDAM supports efforts to significantly in- crease funding for roadway expansions and improvements in both rural and urban areas AN ECONOMIC DEVELOPMENT STRATEGY FOR MINNESOTA Of the Slate. Economic development results from the combination of a va- 2. To help pay for these improvements, EDAM riety of factors. EDAM's legislative policies are established it supports a 10 cent per gallon inflation adjust- with the intention of enhancing the following core economic i ment [o the state's gas tax. development components: 3. EDAM supports indexing the state's gas [ax to the rate of inflation so that the real value 1. Business retention and expansion (after inflation) of transportation investment 2. Marketing to targeted industries remains constant each year. 3. Support of entrepreneurship 4. Leverage tools and financial resources 4, EDAM supports the expansion of light rail 5. Build and maintain infras[rucwre and commuter rail, which not only aid in 6. Train and educate a workforce transportation but represent opportunities for economic development and redevelopment. I II. ADDITIONAL FUNDING FOR III. PRESERVE & ENHANCE INFRASTRUCTURE PROGRAMS ECONOMIC DEVELOPMENT & REDEVELOPMENT TOOLS AND RESOURCES Issue: Issue: State level economic development programs provide vital Tax Increment Financing (TIF) remains an important tool for assistance to cities -often providing the critical last piece economic development and redevelopment efforts. Over the needed to move worthwhile projects forward. These programs years, the power of TIF has been eroded, and the rules for provide important assistance for the development of infra- utilizing TIF have grown more complex. To keep Minnesota stmcture, removing blight, cleaning up contaminated prop- competitive with other states, it is essential that TIF be pre- emies and providing needed gap funding for projects. Over served and its use simplified. the years funding for these important programs as remained steady or declined. The Business Subsidy Law provides important information to the general public on how their [ax dollars are being used to Policy: assist business. However the definition of what constitutes a 1. EDAM supports increased funding for state "business subsidy" is so broad that it creates considerable ex- economic development programs, specifi- [ra work, particularly for small projects. cally: a. Infrastructure Grant Programs Poliey: b. Redevelopment Grant Programs 1. EDAM strongly supports the preservation c. Minnesota Investment Fund and enhancement of Tax Increment Financ- d. Brownfields Cleanup Programs ing for economic development and redevel- opment projects. 2. EDAM supports adjustments to the Business Subsidy law [o remove unneeded regulatory burdens, while still providing public disclo- sure of business assistance. Further, EDAM supports raising the threshold of what con- stitutes a "business subsidy" from its current level of $75,000 to $250,000. THE 2006 EDAM LEGISLATIVE COMMITTEE CO-CHAIRS • Aaron Backman, City of Mounds View • Miles Seppelt, City of Hutchinson ' Lobbyist • Kathy Hahne, Faegre and Benson REJournals.com -Dakota County becomes a healthcare provider battleground Page 1 of S . IIIllMNESOT~ RE;~L ESiAi'E dUURNA! _ ® „ Mar. 03,: Thursday March 01 2007 Welcome, Dakota County becomes a healthcare provider Signout battleground Allina, Fairview, Mayo all are seeking a stronger presence in the fast-growing South Metro area, where the new rooftops are blossoming. Y~! Anne i3retts Contributing Writer ~Ltn~l For years, Twin Cities health care systems have focused a lot of their attention on the fast-growing areas of Woodbury, Maple Grove and the western suburbs. But there's another battle shaping up south of the Minnesota River. That's where Metro-area giants Allina Health System and Fairview Health Services are leading the charge from the north, and also where Rochester's Mayo Clinic monolith is testing a northward expansion of its southern Minnesota stronghold. This means that puts Dakota County is at the center of a push to retain existing customers, convert new suburbanites looking for health care and deliver the babies who will be the next generation of loyal patients. Burnsville is ground zero for medical development. City officials there estimate that there are nearly 190 health care providers, most of them clustered near, and in some cases anchored by, the now 150-bed Fairview Ridges Hospital. But competition also is fueling a construction boom of new facilities in Lakeville, Farmington and beyond the county line as far south as Owatonna. There are would you ii dozens of players in many kinds of facilities, but three stand out for their sheer advertise wi size and strength. Learn now v Building the brands While the fine points of the strategies vary, the driving principle is the same for all three. "Proximity matters," says Thomas Holets, president of Allina Medical Clinics. "It's still a very high-touch business." And with early revenue figures from 2006 indicating a decline, the push is on not just to touch more patients, but to hold on for dear life. Unlike retailers who can replicate identical stores in areas as rooftops hit a certain number, healthcare providers operate more like the hub and spoke systems of airlines. Holets points out that suburban and rural patients generally don't have a relationship with any of the major downtown Metro hub hospitals, which they might need only rarely for the most critical -and expensive -medical services. Thus, the key to success is system integration, or building brand loyalty to the health system by providing the vast majority of care where patients live. http://www.mrej.com/story.cfm?Market=MN&StoryID=14748 03/03/2007 REJournals.com -Dakota County becomes a healthcare provider battleground Page 2 of 5 That's why Allina is in 60 communities in Minnesota, all linked by a new, comprehensive electronic records system with its laboratories, imaging centers and its flagship, Abbott-Northwestern Hospital. The tricky part of all this system integration lies in providing the mammograms, lab work, minor surgery and other services in that gap between the primary care doctor's office and the intensive care units of a major medical facility. The high cost of providing those services in areas where growth is more potential than real is creating some tough competition and some unusual alliances. The cleanest system integration belongs to Fairview. Fairview Ridges Hospital dominates the southern healthcare market just as its six-story campus dominates the strategic triangle created by the County Road 42 and the Interstate 35W/35E split. Brian Knapp, vice president of operations at Ridges, has been there since before the hospital opened in 1984, and is wrapping up his fourth round of construction. The latest, a $30 million addition and renovation launched in 2005, has upped its bed count to 150, added four operating rooms to make a total of 12 and now is renovating areas to keep up with changes in services. It also created asixth-floor shell to position the facility for its next addition. One reason a hospital is important to the Fairview system gets back to that issue of proximity. "Forty percent of (inpatient) admissions are driven by ambulance," Knapp says. Ambulances usually have a policy of transporting to the nearest hospital, and Ridges benefits from its pivotal position on the area's highway grid. Most of the rest of those admissions come from, and return to, Allina's clinics. Hospital creates hub, keeps adding spokes "We assume we can provide about 88 percent of patient care here," Knapp says of Ridges Hospital. Neurosurgery, burn treatment and high-level trauma care will remain downtown, but Knapp says he anticipates Burnsville will continue to add services, such as some of the cardiology services now centered at Fairview Southdale Hospital in Edina. And of course, the hospital creates new patients all the time, delivering 3,600 babies per year. To help build that patient base and support new services, Knapp works closely with Fairview's main Riverside campus, but he also works closely with Sally Wahman, vice president of ambulatory services, who coordinates what is now called the Minnesota Valley Fairview Clinics. The Minnesota Valley system includes clinics in Burnsville, Apple Valley, Prior Lake, Lakeville and a clinic with urgent care services in Eagan. A clinic in Farmington is planned for late this year. Fairview owns its hospital but keeps its clinic focus on services by leasing office space. For example, it is working with developer Elder Doyle to create and lease larger space in Lakeville in a building that also houses an independent optometrist and a psychologist. "They're complementary, not competitive," Wahman says. Knapp says the issue of proximity is part reality and part emotional closeness for newcomers to the area. http://www.mrej.com/story.cfm?Market=MN&StoryID=14748 03/03/2007 REJoumals.com -Dakota County becomes a healthcare provider battleground Page 3 of 5 "I think the initial affinity will depend on where they moved from," he says. "If they moved from St. Paul out here, their affinity might be to St. Paul." Mayo moves north The newest player in Dakota County is hoping to change some of those traditional affinities. Mayo Clinic and its Mayo Health System have 30,000 employees, a medical school and world-class research and treatment facilities in Rochester. But rather than focus on buildings, Mayo has partnered to provide physicians for clinics and other facilities throughout a broad area, and now draws patients from Wisconsin, Iowa and a corridor along the southeastern quadrant of Minnesota. Still, Mayo Health System Administrator Michael Seifert knows stretching out to the north won't be easy. "NO, we're not looking at coming in and taking over the market," Seifert says. "We really are looking at that corridor running through Lakeville and Farmington as an underserved area from a healthcare perspective, especially with the high growth in the last decade. "Right now I think the reality is that people in that area look north (to the Twin Cities metro) for health services, and that's fine, but we do want to offer them an option." This time, David and Goliath are on the same side of the battle. David in this case is Northfield Hospital president Ken Bank, who led the small, old city- owned facility in a new direction in 2005, building a $35 million campus on the northwest edge of town. The idea was to position it along the eventual extension of Cedar Avenue. And by grabbing a corner of Dakota County, it could tap into the benefits of an urban hospital designation. But the move put the hospital in a location fairly remote from most of the city, and with Cedar Avenue's growth corridor still miles away, the hospital needed another way to grow its patient base. So last year, Bank made another leap, spending $15 million more to build clinics in Lonsdale, Lakeville, Farmington and next to the Northfield hospital, and hiring Mayo to staff them. "Tb Mayo, the advantage is we're providing the capital to see how they're received in the metro market," Bank says. "The Mayo connection gives us immediate credibility with patients." The hospital has average annual revenues of about $55 million, which generated about $3 million in excess of expenses before all the construction started. Now the hospital is breaking even. Bank says the board knew expansion would require investment. Competition picks up Northfield Hospital's move to add clinics puts it in direct competition with Allina, which until now had the only clinic in town. Its doctors worked through the hospital and Allina provided imaging and other services there. Allina is now pulling most of its services out of the hospital and expanding its clinic on the Highway 3, the main north-south corridor in the area. Allina has the client base and deep enough pockets to cover the clinic expansion and weather the competition. http://www.mrej.comistory.cfm?Market=MN&StoryID=14748 03/03/2007 REJournals.com -Dakota County becomes a healthcare provider battleground Page 4 of 5 Allina's Holets says the problem was that his company wanted to keep patients inside its system, which worked when the city hospital was old and limited in capacity. "We tried to develop a collaborative relationship with the hospital," he says. "It doesn't make any sense to duplicate services. You have to have volume to do ambulatory services. We tried but couldn't pull it off." When the new Northfield Hospital opened, there was pressure to keep patients in Northfield pressure that pushed out Allina and its imaging services. The big question now is whether Northfield Hospital can attract a patient base quickly enough to support the services at the hospital and to cover the debt service on its aggressive expansion. Its first clinic opened in Lonsdale opened in November and Bank says early numbers are positive. He's confident, but realistic, about the future. "It takes a while to grow primary care practices and we're trying to grow a lot of them at the same time," he says. Allina is holding its own in Faribault, where it and Mayo have distinct clinics and there is an independent hospital. Holets claims Allina has about 65 percent of the market share there, to 35 percent for Mayo. He doesn't agree with Mayo's belief that people can be lured south. "We know the dividing point is basically Faribault," Holets says. "We don't. think there's any draw from Lakeville to Rochester." But while Mayo and Allina go head-to-head in Northfield and Faribault and soon in Farmington, they are allies in a $48 million hospital project further south in Owatonna. "Owatonna is furthest south and maybe one of the least integrated but highest collaborative models," Holets says. "We have a clinic and own the hospital there, and there is an independent doctor group that is part of Mayo regional health system." Mayo even donated the land for the hospital, and all the facilities will be clustered along the Interstate 35 corridor. Mayo's Seifert and Allina's Holets agree that cooperation was the only option in Owatonna. The hospital was needed because there is no other care within a reasonable distance, Holets says. But there's nowhere near enough population in the area to support two facilities. The new system is designed so patients from both clinics will see their services as seamless, even though working through all the details was a challenge. "It takes a lot of trust," Holets says. Positioned for growth or overbuilt? At this point, it's too soon to tell whether all the healthcare construction will position the players to take advantage of growth in southern Dakota County and beyond or whether the cooling housing market will leave them overextended while they wait for the growth to catch up. Seifert says Mayo officials were surprised when they saw the strength of the population numbers for southern Dakota County and points south. He says the Highway 19 corridor, which includes Northfield, was much stronger than http://www.mrej.com/story.cfm?Market=MN&StoryID=14748 03/03/2007 REJournals.com -Dakota County becomes a healthcare provider battleground Page 5 of 5 anticipated. Wahman says Fairview's plans to add a clinic in Farmington later this year were based on population figures as well as the system's own record of where patients live and what they share on feedback surveys. But however tough the competition is in the short-term, the long-term picture is strong. Dakota County's household income is more than $66,000 per year. Its population in 2005 was 391,558, a jump of 10 percent in six years. Census figures show the county grew at an even faster 29 percent rate from 1990 to 2000, up to 355,904 from 275,227. That population is projected to grow to nearly 500,000 by 2020, and maps show most of that growth will be continued expansion of the already-developed areas in the north and west corners of the county. It also happens to correspond to the areas where all those new clinics are being built. It will be interesting to see how these new residents, who are bringing their coffee chains along with them but still are tied to downtown jobs, will choose healthcare. Will they pick it like they do a Starbucks or Walgreens, or will they give proximity a whole new definition? Anne eretts is a freelance writer based in Northfield. Minnesota Real Estate ]ournal 5353 Wayzata Blvd, Suite 307 Minneapolis, MN 55416 1-888-516-7939 Reai Estate Publishing Group 415 N State Street Chicago IL 60610 1-888-753-7828 Copyright 2000-2005 (y Real Estate Publishing Group. By using this site you agree to the Terms Of Use. http://www.mrej.com/story.efm?Market=MN&StoryID=14748 03/03/2007 13EJournals.com -Chianti Grill restaurateurs move to Lakeville market http://www.mrej.com/story.cfm?Market=MN&StoryID=1476? v IINNME~iN Condominium +~'9,;~ ~ ~h"` REAL ESTATE JpURNAI l~ . u ` ~rt .s 411 Alf 2 =2'00 - Mar. 09, 2007 • 03:50 PM Friday March 09 2007 Welcome, Adam Chianti Grill restaurateurs move to Lakeville market Plans set for a Porterhouse Steaks outlet along I-35 Signout Don 7acohson Editor Sign Up For Our Two successful restaurateurs who have scored hits with their upscale MEWSLEi'FEB Chianti Grill concept have now set their sites on quickly developing Lakeville, where they hope to open a second version of Chianti's sister restaurant, Porterhouse Steaks and Seafood. Chianti and Porterhouse co-owners Bob Gillen and Kevin Schleif have purchased one of three lots at a planned new retail development called Kenrick Corner, located at the northeast corner of Kenrick Avenue and 205th Street West, a spot highly visible from nearby Interstate 35. The plans were approved by the Lakeville Planning Commission in February, and were awaiting action from the City Council. Gillen and SchleiFs company, Superior Concepts Inc., has made a splash with its successful Chianti Grills -the original in Falcon Heights and a new store that opened in Burnsville in December. Both were re-tooled from their beginnings as Ciatti's restaurants. Their first Porterhouse restaurant, they say, is also doing well in Little Canada, a suburban Ramsey County community. Would you like to advertise The pair found a sweet spot in the suburban restaurant scene with their with °s? Learn how you can. Chianti Grill concept by combining an expert and extensive wine list with first-class Italian and steak entrees, putting it over in a "cool" ambiance that has captured the fancy of trend-seekers. An executive chef from Italy and a wine list with more than 120 choices have a created a buzz among those looking for a unique dining experience. Now Superior Concepts is looking to extend its Porterhouse concept to the southern reaches of Dakota County, where the "sit-down" dining choices are few and further between. But the fact that there's not much competition there isn't the driving force behind the decision, says co-owner Bob Gillen. "We're not going there because Lakeville may happen to need it now," he says. "You have to count on the fact that more competition will come to a fast-growing place like that. It's true there's not a lot steak restaurants there now, but there will be. What we're interested in is owning real estate along with the restaurants, and this is a great site." The intersection of Kenrick and 205th Street is only ahalf-mile north of the County Road 70 exit on I-35, says Kenrick Corner developer Mark Zweber, making the property very easy to access. "It's four acres, and we're dividing it intro three commercial lots," says Zweber, who's probably best known for his successful Shops on Galaxie retail-office development in Apple Valley. "We've sold one off to the 1 of 2 3/9/2007 3:44 PM REJournals.com -Chianti Grill restaurateurs move to Lakeville market http://www.mrej.com/story.cfm?Market-MN&StoryID=14763 restaurant group, and we're also doing a 4,800 square foot building there that will have a New Market Bank and will also house Lakeville Family Dental. We're waiting on final plat approval from the city and will be gong into the ground as soon as we can." The Porterhouse Steak and Seafood experience, says Gillen, is different from that of the Chianti Grill. Instead of emphasizing a sophisticated wine list, at Porterhouse it's more about trying to recreate the retro feel of an old-fashioned supper club, right down to the thick steaks. "I would describe the Porterhouse as a nostalgic tribute to the supper club," he says. "It has an intimate but moderately upscale feel, with very high quality food. There's a limited selection but we're focused on doing those selections very, very well." The Little Canada restaurant's menu includes such items as its signature Porterhouse steak for $30.95, a 14-ounze New York strip steak for $26.95 and a shrimp scampi dinner for $20.95. Minnesota Real Estate Journal 5353 Wayzata Blvd, Suite 307 MinneaPOlis, MN 55416 1-888-516-7939 Real Estate Publishing Group 415 N State Street Chicago IL 60610 1-888-753-7828 Copyright 2000-2005 ©Real Estate Publishing Group. By using this site you agree [o the Terms Of Use. 2 of 2 3/9/2007 3:44 PM 'ublic partnership, or corporate blackmail? http://www.twincities.com/mld/twincities/16904777.htm?template=con... Posted on Thu, Mar. 15, 2007 Public partnership, or corporate blackmail? Thomson West wants taxpayer help to fund its Eagan expansion, but some say It's foolish of the state to subsidize such a profitable company. BY BRIAN eONNER Pioneer Press To some, Thomson West's request for $16 million in public subsidies is just more of the same: another profitable private corporation trying to dip into the taxpayer well for a handout that serves no broad public interest. To others, the tax breaks are a small price to pay for a smart public-private partnership that brings the promise of 2,000 new, high-paying jobs by 2012, anchoring a major employer even more firmly to Eagan. The giant legal publisher, whose parent Thomson Corp. had $6.6 billion in revenue and $1.3 billion in opereting profit last year, wants to expand its massive campus in the St. Paul suburb. The construction will add 505,000 square feet at an estimated cost of $120 million. But why should elected officials spend public money for a construction project that the company can easily afford on Its own in the city where it prefers to expand, anyway? Richard H. King, chief operations officer of Thomson West's legal and regulatory division in Eagan, might have the most honest answer: This is how the game is played. Economic incentives are a fact of life. "Rules are rules, and you look at what you can do," King said. Critics want the rules of the game changed. Their argument: Picking economic winners and losers is not government's job -it's the role of free and competitive markets. Public money should be spent on services, such as preschooleducation and health care, that bring universal benefits to society. "Having a good, educated, highly trained work force is best achieved by directing taxpayer resources to education," said Arthur Rolnick, senior vice president and director of research at the Federal Reserve Bank of Minneapolis. "That beats a parking lot and that beats a Twins stadium and that even beats a corporate headquarters." Education creates sustainable economic growth, Rolnick said, white tax breaks are "just an economic sinkhole." State Rep. Ann Lenczewski, DFL-Bloomington, is another leading voice calling for a halt to corporate subsidies. Lenczewski said businesses have become sophisticated at pitting governments at all levels against each other in bidding wars to keep or entice them. "Congress should try to stop states from doing it," Len¢ewski said. "And state legislatures should rein in cities from doing it." Rolnick has long championed a federal solution - and a 100 percent tax on public subsidies - as the surest way to eliminate them. "My criticism is not of Thomson West. It is not df local people. It's of Congress. They have the responsibility to regulate interstate commerce and they're not doing it," Rolnick said. "The public will be better off if we end this bidding war, but companies won't be," Rolnick said. "It's difficult to unilaterally withdraw if some state comes after 3M or General Mills. If you're the mayor or governor, you're not going to be able to say, 'We're above all this.' " EASY PREY Far from creating new economic development, tax breaks often merely relocate activity in ways that serve no national or state interest, Rolnick said. The effect, he said, is to drive up everyone else's taxes. Rolnick cited as an example the $59 million subsidy that lured Best Buy Co. to consolidate its headquarters in Richfield in 2003. Northwest Airlines, Target, Lawson Software, Medtronic and countless other businesses, big and small, have all gotten bailouts, incentives or tax breaks. Government subsidies to private industry are, in fact, so prevalent at so many levels that they are impossible to quantify. Without the tax breaks, Thomson officials have said, they might look elsewhere to expand, and they note that the company has 400 locations in the United States alone to choose from. „t'a 3/75/2007 R:19 AM ublic partnership, or corporate blackmail? http://www.twincities.com/mld/twincities/16904777.htm?template=con... But how credible is that threat? At first, Thomson West said it was considering two other locations, in Ohio and Texas. Then It acknowledged that Ohio was off the table and that Texas officials had not been approached. Since the jobs would be added to the company's legal and regulatory division, which has its headquarters in Eagan, under what circumstances would it make sense to expand anywhere else? Only Thomson West knows the answer. And that insider knowledge, Len¢ewski said, is what makes state lawmakers easy prey to economic blackmail. "That's the trick for lawmakers: to know what the private company knows," Lenaewski said. "Government isn't competent to analyze these big business deals. The developers of these projects know what number they need to make a project work. Government is at an inherent disadvantage." Rather than call a company's bluff and risk losing the jobs, lawmakers often give in, Lenaewski said, although Minnesota rejects many handouts. "We do that all the time, every year," she said. "Tons come before us and don't pass." And that suits Lenaewski fine. "My opinion is government should do things to help the whole climate, not try to figure out how to get 'X' company to do what you want them to do," she said. FACTS OF LIFE Terminology is an easy way to find out how people stand on the issue. Supporters of tax breaks use the same words as Thomson West and its supporters: "incentives," "investments," "partnerships." The harshest critics, meanwhile, label the giveaways as "bribes" or "corporate welfare." Whatever the public subsidies are called, Rolnick said, "the more expensive they are, the worse they are in my mind." ey that standard, legislators might view Thomson West's request favorably. The company is seeking a small sum in comparison to what state, county and local governments have given or are being asked to give to other companies. The Mall of America in Bloomington, for instance, wants $234 million in state money to build a parking ramp so that it can expand the tourist attraction. The Minnesota Twins and Vikings want hundreds of millions more for new stadiums. So far, the Thomson West proposal hasn't hit a roadblock in the Legislature. Company officials have appeared before two Minnesota Senate committees and are expected to appear before the House Tax Committee later this month. Gov. Tim Pawlenty's administration, Eagan city officials and area lawmakers are leading the charge for the incentive package, which knocks about 10 Rercent off the expansion's sticker price. "It's one of the largest economic-development projects in the country, let alone the state, this year," said Eugene E. Goddard, economic-development program specialist for the Minnesota Department of Employment and Economic Development. "This is a great project." The $15 million proposed package of state and local tax breaks includes: • $8.9 million in sales tax exemption on construction. • $3 million in "forgivable loans," essentially grants, from the state. • $1.5 million in state upgrades to Minnesota 149 (Dodd Road). • $1.5 million in city tax-increment financing for the construction, to be repaid by future property taxes. Even some supporters, however, feel conflicted about the company's request. Iohn Nasseff is the former vice president of West Publishing Co., which was bought by Thomson for $3.4 billion in 1996. Despite his mixed feelings, Nasseff said the state should do what it can, within reason, to keep the company expanding in Eagan. "It bothers me, and it makes me feel good," said Nasseff, now retiredand one of St. Paul's leading philanthropists. "I think (Thomson West) should pay it, but that's the world we live in. You have to keep what you've got. NOt at any cost, obviously. They can move to any country and operate cheaper than they can here, if they wanted to." But, like other taxpayers, Nasseff wonders when public giveaways to private corporations will end. Ruthe Batulis, president of the Eagan-based Northern Dakota County Chamber of Commerce, admits the organization's support for the targeted tax break is inconsistent with the chamber's stance that favors improving the overall business climate for everyone. "I think we are taking the position we need to in this particular case with our largest employer," Batulis said. "And we do need to take the position of holding the line on taxes, always." of 2 Rl1572007 R-19 ANI 'ubliCttartnership, or corporate blaclanail? http://www.twincities.com/mid/twincities/16904777.hun?template=con... } And that's the state of public policy with respect to subsidies today: An inconsistent mix of deals, evaluated on a case-by-case basis, with lawmakers often making decisions based on what's best for their geographic turf as opposed to the broader public interest. "It depends on where you sit," Lenczewski said. No matter how the debate turns out in the Legislature, nobody disputes Thomson West's success as a national industry leader or its value to Eagan and the larger Minnesota economy. 'The real meat of the business is capturing laws passed by government bodies and decisions issued by courts," said Thomson West spokesman John T. Shaughnessy. "We review, analyze, classify and load them into databases. It's the heart of the system of justice: Giving everyone access to the same information." The company has more than 20 million customers in law, tax, accounting, financial services, scientific research and health care fields. While the information is increasingly disseminated online, published books remain popular. Both options come together in the 2.7 million-square-foot campus whose 6,800 employees include 1,400 technology professionals and 800 attorneys. The place is a small town unto itself with shops, cafeterias, a training center and other perquisites for the workers. The parent company is Canadian-based Thomson Corp., which has operational headquarters in Stamford, Conn. The Eagan operations account for more than half of the company's revenue and 20 percent of its 33,000 employees worldwide. If all goes as Thomson West expects, the Eagan campus will grow to more than 3 million square feet and house 8,800 workers on 271 acres. Besides spending at least $120 million to add 425,000 square feet of office space and 80,000 square feet to the data center, the company expects to invest $100 million to equip the additions. The average salary of the new employees will be $70,000, the company says, and it calculates that their income taxes will return the state's investment in four years. "This is a company that does everything right," said state Sen. lim Carlson, DFL-Eagan, while arguing for the tax breaks. Soon enough, Minnesotans will find out whether scoring tax breaks can be added to the list of what Thomson West does well. Brian Bonner can be reached at bbonner@pioneerpress.com or 651-228-2173. ®2007 SL Paul Pioneer Press and wve service sources. AO Rights Reserved. htip://www.nvincitles.com of 3 3/15/2007 8:19 AM