HomeMy WebLinkAbout08-29-06 City of Lakeville
High-Tech Subcommittee
Agenda
Tuesday, August 29, 2006, 5:00 p.m.
Marion Conference Room
City Hall, 20195 Holyoke Avenue
Lakeville, MN
1. Introductions.
2. Review results From Telecommunications Needs Assessment
Survey.
3. Other items.
4. Adjourn no later than 5:30 p.m.
City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission
High-Tech Subcommittee
From: Adam Kienberger, Economic Development Specialist
Copy: Steven Mielke, City Administrator
David L. Olson, Community and Ewnomic Development Director
Date: August 25, 2006
Subject: Technology Needs Assessment Survey
As a part of the 2006 Economic Development Work Program, the High-Tech
Subcommittee was tasked with conducting a survey of existing businesses to
determine current and future Internet/information and telephone/voice service
needs and how these needs are being met by the current service providers.
On July 21, 2006, a letter was mailed to approximately 240 businesses in Lakeville
requesting that they go the City of Lakeville website and complete a survey asking
them about their business's technology needs and practices. 65 businesses took the
time to go to the survey page and input some information, while 47 completed the
entire survey. This response rate of X20% is exceptional for a mail survey and
serves as a solid representation of the Lakeville business community.
The survey results indicate that while the majority of the businesses surveyed are
satisfied with their services, a significant group desire additional competition and/or
services that are currently not available in Lakeville.
Some of the more interesting findings include:
• 52% of the respondents have additional business locations.
• 35% of the respondents employ between 1-10 people.
• Nearly 49% of the respondents are using xDSL as their main Internet service.
• Approximately 21% are not satisfied with their current data service
requirements.
• There appears to be a growing trend of companies switching, or considering
switching, voice service to VOIP.
• Several companies are concerned about a lack of options for redundant data
service in Lakeville.
The High-Tech subcommittee will continue to meet monthly to discuss the next
steps needed as a result of the survey. The complete results of the survey are
attached.
City of Lakeville
Economic Development Commission
Regular Meeting
Agenda
Tuesday, August 29, 2006, rJ:3~ p.m.
City Hall, 20195 Holyoke Avenue
Lakeville, MN
1. Call meeting to order.
2. Approve June 27, 2006 Regular Meeting minutes
3. Presentation of Results of High Tech Subcommittee Survey of Local
Businesses
4. Update Status of Strategic Plan Work Program for 2006
5. Director's Report
6. Adjourn
Attachments:
? .July Building Permit Report
? Economic Development Association of Minnesota Developer Newsletter
? Minneapotis/St. Paul Business Journal Article- "Mayo to staff Lakeville Clinic"
? Minneapolis/St. Paul Business Journal Article - "Builders await demand"
? StarTribune Newspaper Article - "Builders retool as housing cools"
? Dakota County CDA Newsletter Article -"Annual Market Survey Shows Little
Change in Rents"
item Noe a
City of Lakeville
Economic Development Commission
Meeting Minutes pRAFT
June 27, 2006
Marion Conference Room, City Hall
Members Present: Comms. Brantly, Miller, Emond, Gehrke, Smith, Tushie, Pogatchnik,
Erickson, Schubert, Ex-ofFcio member Chamber of Commerce Executive Director Todd
Bornhauser.
Members Absent: Comms. Matasosky, Ex-officio member City Administrator Steve
Mielke.
Others Present: Staff present: David Olson, Community & Economic Development
Director; Adam Kienberger, Economic Development Specialist; Dennis Feller, Finance
Director.
1. Call Meeting to Order.
Vice Chair Pogatchnik called the meeting to order at 6:00 p.m. in the Marion
Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota.
2. Approve April 25, 2006 Meeting Minutes
Motion 06.08 Gomms. Schubert/Emond moved to approve the minutes of the
April 25, 2006 meeting as presented. Motion carried
unanimously.
3. Update on High-Tech Subcommittee Survey
Mr. Kienberger gave an overview of the progress the High-Tech Subcommittee has
made in finalizing a survey to be sent out to local business to assess their
telecommunications needs and how these needs are being met by current providers.
The survey will be similar in nature to what was done approximately five years ago
except that the new survey will utilize an online survey company,
surveymonkey.com, to collect and analyze the data.
Comm. Brantly asked if the current and potential providers would be brought in
again to discuss options and service in Lakeville.
Comm. Smith asked if there would be discussion about infrastructure improvements
such as creating a widespread fiber network in Lakeville.
Mr. Kienberger indicated that those would both be likely outcomes of the survey
once it is completed.
Economic Development Commission
Meeting Minutes
June 27, 2006
Mr. Olson commented that some businesses desire redundant Internet access
availability.
Ex-officio member Bomhauser volunteered to have the Chamber of Commerce help
do follow up calls to encourage businesses who don't complete the survey.
The EDC discussed the scope of the business community to be surveyed and it was
concluded that those businesses in the industrial park, Fairfield Business Campus
and larger office/retail users would be the primary focus.
4. Director's Report
Mr. Olson discussed the upcoming manufacturers breakfas# meeting at the Dakota
County Workforce Center in Burnsville. This is a joint effort between the City of
Lakeville and the Lakeville Chamber of Commerce, the City of Burnsville and
Burnsville Chamber of Commerce, and Dakota Future to discuss workforce issues
with local manufacturers.
Mr. Olson reminded the EDC of the joint work session on July 10th, 2006 to discuss
the progress of the Downtown Plan.
Mr. Olson gave a brief report on the recent EDAM conference and handed out
information regarding the changes to the eminent domain law made during the
recently concluded legislative session.
Mr. Olson also gave a brief report on the May 2006 building permits.
Mr. Olson continued by pointing out the article in the packet regarding the recent
recognition Despatch Industries received. He concluded by mentioning that
Lakeville SuperTarget was featured as the June 19th Spotlight on Business.
5. Review and Discussion of Proposed Economic Benefit Study
Mr. Olson described the proposed economic benefit study and noted that the last
time a similar study was done was in 1991. He also noted that a draft proposal from
Springstead was obtained in April of 2005 to address the outcome for the following
goal in the Strategic Plan for Economic Development:
Completion and approval of a study to determine the minimum market value of a
residential housing unit that generates sufficient City property taxes to pay for the
City services required by the unit.
Mr. Feller gave an example and inquired of the EDC what exactly they wished to
obtain from doing this type of economic benefit study. If the outcome is to achieve a
balanced tax base, how do you define balanced?
2
' Economic Development Commission
Meeting Minutes
June 27, 2008
Vice Chair Pogatchnik stated that the outcome should tell the EDC what everything
(development) contributes in the community; if certain development types are paying
more than they should be and how it has changed in the past 8-10 years.
Comm. Tushie added that retail provides a bigger economic benefit to the
community than many people realize. Some of the City's largest taxpayers come
from the retail sector. It would be helpful to have a benchmark of taxes paid per
services used for each type of development.
Comm. Brantly mentioned the idea of life-cycle housing helping maintain a balanced
tax base by being conducive to different development styles in the community.
Vice Chair Pogatchnik commented that the City is already doing something right
when it comes to taxing and development as Lakeville remains very competitive in
the current marketplace.
Mr. Feller added that the City Council 20 years ago set the framework for a strong
yet manageable growth pattern.
Comm. Tushie commented that mixed-use development has a high tax value and
Mr. Feller added that office condo developments also provide for high tax values and
low demands on services.
Mr. Olson stated that it appears as though the consensus of the EDC is that the
study should be used for a generic analysis of costs associated with City services for
different development types and be used as a tool for planning purposes.
6. Review of Maxfield Research Proposal for Additional Housing Needs Analysis
for Lakeville
Mr. Olson reviewed the draft proposal provided by Maxfield Research to assess the
potential demand for senior housing and workforce housing in the City of Lakeville.
Comm. Tushie indicated that he would like the analysis to determine to what extent
twinhomes and townhomes affect the senior population housing numbers. These
units are not age restricted but are likely searing a section of the seniors in Lakeville.
Comm. Emond stated that transportation is a key issue pertaining to the need for
senior and workforce housing. Long commutes are not as viable as they used to be
and businesses need to be close to their workforce to remain competitive. If the
workers aren't able to live in the community where they work, will the businesses
start to move to where their workers can afford to live?
Mr. Olson commented that affordable and workforce housing is becoming a growing
issue metro-wide. Some communities have hired or are hiring staff to work solely on
housing issues.
3
Economic Development Commission '
Meeting Minutes
June 27, 2008
Comm. Tushie noted that current growth statistics point towards enormous growth in
minority populations in the entire country, and that this trend will create additional
demand for housing.
Comm. Schubert added that it is even becoming a safety issue when multiple
families end up sharing a single residence.
Mr. Olson also commented that there is discussion of utilizing some sort of transit-
oriented development along the Cedar Avenue transit corridor in Lakeville. He then
stated that this additional housing analysis is proposed to be funded with Community
Development Block Grant dollars and that the scope will be limited by the amount of
grant money available.
7. Adjourn
The meeting was adjourned at 7:30 p.m.
Respectfully submitted by: Attested to:
Adam Kienberger R. T. Brantly, Secretary
Economic Development Specialist
4
~~m No. ~
City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission
From: Adam Kienberger, Economic Development Specialist
Copy: Steven Mielke, City Administrator
David L Olson, Community and Economic Development Director
ate: August 25, 2~6
Subject: Technology Needs ~t Survey
As a part of the 2008 Economic Development Work Program, the High--Tech
Subcommittee was tasked with conducting a survey of existing businesses to
determine current and future Internet(information and telephone/voice service
needs and how these needs are being. met by the current service. providers.
On July 21, 2006, a letter was mailed to approximately 240 busir~eSSeS in Lakeville.
requesting that they go the City of Lakevipe website and complete a survey asking
them about their business's technology needs and practices. 65 businesses took the
time to go to the survey page and input some information, while 47 completed the
entire survey, 't'his response rate of X20% Is exceptional for a mail survey and
serves as a solid representation of the Lakeville business. community.
The survey fesults indicate that while the majority of the businesses surveyed are
satisfied with their services, a significant group desire additional competition and/or
services that are currently not available in Lakeville.
Some of the more interesting findings include:
• 52% of the respondents have additional business locations.
• 35% of the respondents employ between 1-10 people.
• Nearly 49% of the responders are using xDSL as their main Internet service.
• Approximately 21% are not satisfied with their currentdata service
requirements.
• .There appears to be a growing trend of companies switching, or considering
switching, voice service to VOIP.
• Several companies are concerned about a lack of options for redundant data
service in Lakeville.
- The High-Tech subcommittee will continue to meet monthly to discuss the next
steps needed as a result of the survey. The oQmplete results of the survey are
attached.
Technology Needs Assessment Survey
i. Company Name
Total Aespondeats t3
(skipped this question) 2
2. Address
TatalRespondents 63
(skipped this question) 2
3. Name of Reapondeat
Total Respondents S3
(skipped [his question) 2
4. Title;
Total Respondents Sf
(skipped this question) 9
S. Pitons Number
Total Respondents 34
(skipped this question) 11
6. Email
Tatn1 Respondents 63
(skipped this question) 2
7. Ta this k>ation the companya headquarters?
Response Response
Percent Total
Yes 70.$°/a a6
No ~ 29.2% 19
Total Respondents 6S
(skipped this quesflon) 0
Ia this the otily location for this business?
Response Response
Percent Total
1
Yes - 52.3% 34
No - 47.7% 31
Total Respondents 65
(skipped [his question) 0
9. Please provide the city and state of your company's other locations.
Total Respondents 28
(skipped this question) 37
10. Approximately how many employees does your business have in Lareville?
Response Response
Percent Total
1-10 ~ 35A% 23
11-20 ~ 18.5% 12
21-50 - 26.2% 17
51-100 ~ 12.3% 8
101-150 ~ 3.1% 2
>150 ~ 4.6% 3
Total Respondents 65
(skipped this question) 0
11. Who[ type of system does the company use far managing telephone service?
Response Response
Percent Total
PBX - 28.6% 14
Cenlrex ~ 122% 6
VOID ~ 12.2% 6
Other (please specitq) ~ 46.9% 23
- Avaya Total Respondents 49
- ATT partner system (skipped this question) 16
- Don't know (9 responses)
- Frontier (4 responses)
- Local and in-house service
- Versaline
- Vodavi
- VOIP PBX (3 responses)
- None
2
12. Please indicate how many of the following types of lines the company has for voice/fax
services:
Response Response
Percent total
I¢dividaalized Li¢ Average of 6.71ines; Median of 4 lines
(POTS
Chaonelized T-1 Average of 5 T-1 lines; Median of 1 line
Total Respondents 43
(skipped this question) 22
13. what is your cost Por each type of line service per momh?
Response Response
Percent Total
Indivld¢nl Lin Average $65.51; Median $54.00
T-1 Average $319.87; Median $364
VO Insufficient data
Total Respondents 37
(skipped this question) 28
14.On average, how kmg does it take to get new service installed?
Response Response
Perce¢t Total
1 Day ~ 8% 4
7-14 Days - 38% 19
15-30 Days ~ 14% 7
31-45 Days ~ 4% 2
> 45 Days 0% 0
Don't Know ~ 36% 18
Total Respondents SO
(skipped this question) 15
1 S. Who provides your current service?
Response Response
Percent Total
Fro¢tler 89.8% 44
Skype ~ 6.1% 3
3
Vonage ~ 4.1% 2
Charier ~ 2% 1
Other' (please specitj~) ~ 8.2% 4
- Broadwing Total Respondents 49
- Qwest (2 responses) (sWpped this question) 16
16. Are your current voice service requiraneata being met?
Response Response
Penent Totat
Yes 87.8% 43
No ~ 12.2% 6
TotalRespondeats 49
(skipped this question) 16
17. If "No", please explain: See Appendix A
Total Respondents 4
(skipped this gaestioo) 61
18. Have you considered other options/providers? Please explain:
Total Respondents 47
See Appendix A
(skipped this question) 18
19. Does your company currently have a Local Area Network (LAN)?
Response Response
Percent Total
Yes 82.6% 38
No ~ 17.4% 8
Total Respondents d6
(skipped this question) 14
20. Tf yes, how many workstations?
Response Response
Percent Total
!-5 ~ 25% 9
610 ~ 30.6% 11
11-20 ~ 16.7% 6
4
21-50 ~ 11.1% 4
51-100 ~ 8.3% 3
>100 ~ 8.3% 3
Total Respondents 36
(stripped this question) 29
21. Data hate:
Response Response
Percent total
10 Baser ~ 29% 9
111011aseT 54.8% 17
Gigabit ` 16.1% 5
Total Respondents 31
{skipped this guestiaaj 34
22. Does yow company currently have a Wide Area Network (WAN)?
Response Response
Percent Total
Yes - 37.8% 17
No 62.2% 28
Total Respondents 45
(skipped this question) 20
23. If yes, how many locations are connected?
Response Response
Percent Total
1S 58.8% 10
6-10 ` 17.6% 3
11-20 5.9% 1
21-50 ¦ 5.9% 1
51-100 0% 0
>100 ~ I1.8% 2
Total Respondenta 1T
(slipped this question) 48
24. WhaPs your connection type to the WAN?
5
Response Response
Perreat Total
56Kbps 0% 0
ISDN 0% 0
Fume-Relay 5.9% I
ATM ~ 5.9% I
T-1 ~ 11.8% 2
Fractional T-1 ` 11.8% 2
T-3 D% 0
Fractional T-3 0% 0
tcDSL - 35.3% 6
Wireless ~ 11.8% 2
Other (please specify) ~ 17.6% 3
- T-1 and Wireless 6+ Mbps Total Respondents 17
- Two xDSL connections (skipped this question) 48
- VPN
25. What type of Intaznet access does your company utilize?
Response Response
Perce¢t Total
Dial-up modem ~ 2.2% 1
ISDN ~ 4.4% 2
zDSL - 48.9% 22
Cable Modem r 6.7% 3
Frame Relay 0% 0
ATM 1 2.2% I
T-1 ~ 15.6% 7
Fractional T-1 ~ 2.2% 1
T-3 0% 0
Fractional T-3 ~ 22% 1
Wireless ~ 2.2% 1
NoIIe 0% 0
Other (please Specify) ~ 13.3% 6
- Ethernet 5 Mbps Total Respo¢de¢ts 45
- FrontierDSL (skipped this question) 20
- Satellite
26. Who provides your setvice~ - Two xDSL
connections
- T-1 and Wireless
6+ Mbps
6
Response Response
Percent Total
Chatter ~ 6.7% 3
Frontier 71.1% 32
Stonebridge Communications ~ 2.2% 1
Other (please specify) ~ 20% 9
-Focal -MCI -Sprint Total Respondents 45
- Implex.net wireless - Visi Vector DSL - No idea (skipped this questiou) 20
- Qweat -Global Crossings
27. What is the approximate cost for your Internet service each month?
Average $231.80; Median $95.22 Total Respondents 45
(skipped this question} 20
28. Are your current data service requiremems being met?
Response Response
Percent Total
Yes 79.1% 34
No - 20.9% 9
Total Respondents 43
(skipped this question) 22
29. If "No",please explain: $ee Appendix A
Total Respondents 9
(skipped this question) 56
30. Would you like a summary of the survey results when completed?
Response Response
Penent Total
Yes 62.8% 27
No - 37.2% 16
Total Respondents 43
(skipped this question) 22
31. Would you be willing to talk with the High-Tech Subcommittee in greater detail about your
telecommunications needs?
Response Response
7
Percent Total
Yes - 30.2% 13
Na 69.8% 30
Total Respondests 43
(skipped this question) 22
8
w
Appendix A
Comments may have been edited
for clarity and privacy
Are your current voice service requirements being met?
17. If "No", please explain:
- The only choice here is Frontier, or VOIP. VO1P isn't always reliable, and
Frontier is expensive. Frontier has a monopoly on land lines, and I'd like
to see some competition to improve service and price.
- If I could get the cost down, I could use a 4th line, but too expensive as it
is.
- Limited service options that we'd like aren't offered and/or the technology
of the options they offer aze outdated.
- We are in the process of integrating a national contract for a119,600
offices to have VOIP, on-hold messages, and other voice services that will
greatly enhance what we utilize now.
18. Have you considered other options/providers? Please explain:
- No (with no further explanation - 8 responses)
- Yes (with no further explanation - 2 responses)
- Personally, no. Our Global Headquarters in St. Louis, MO, shops for
national providers, contracts, and pricing.
- No. Haven't really needed to.
- No. I was told that Frontier was our only option in Lakeville
- No I haven't. I'm happy with Frontier.
- No. The cost is too prohibitive to switch.
- No. We are a new business.
- No. But did not realize that other providers were possible with local
service?
- No. We have a 3 year contract. We thought they were the only provider at
the time we got our service.
- No. We are satisfied with current applications.
- Not recently; prior to opening two years ago we did a fairly extensive
analysis but nothing since.
- Frontier has been able to meet all of our needs to date, for both local and
long distance service.
- We have not considered other providers. We are typically locked with the
data provider to Frontier...makes financial sense to bundle.
- Yes, but the cost to install and transfer is prohibitive plus we have checked
Qwest & been told they can't provide here, only choice is Frontier
- Yes. Upon our initial move into the Lakeville area our costs increased by
more than 40% from our previous provider (Qwest). Since that time
1
Frontier has reduced their individual line cost however I would welcome a
competitor to the service.
- Yes, but too much hassle
- Yes, am using VOII' as alternative to expensive Frontier
- Yes. Considering going digital once contract is up
- Yes. Charter Communication
- Yes. I am currently looking at VoIP and am looking at options with
Stonebridge, Broadwing and possibly Charter.
- Yes. The other options are with smaller carriers and don't provide the
solutions we're looking for. Really need to add Qwest in the city.
- We have looked for other options, but have not been able to find other
options.
- We contacted Charter Communication for VOIP but they do not have
service in the area that we needed coverage. We have been using Frontier.
- We looked into options before opening the store.
- We have contacted other providers such as Sprint, AT&T, and a re-seller
besides Frontier to gain more information about what kind of services are
available, their costs and benefits, and their performance experiences.
Based on our acquired knowledge, we made an educated decision.
- We did check out other providers, and the owner of our phone system is
currently switching to VOID -therefore our future is more than likely
headed to VOID.
- Corporate is evaluating VOID for our Division.
- As soon as it is an option to have it quoted, yes, however Frontier has had
a monopoly on this area for some time.
- Inquired about Charter High speed internet in February, not available.
Went with Frontier at a higher price but the service is o.k.
- Looked at changing to Charter for internet, but decided even if they were
less expensive to have to change email that customers already know (and
having to reprint all business cards/information) it would not be worth that
cost.
- We are always looking to improve quality and service while looking to
manage the expense function of all our providers
- We have 8 separate cell phones for convenience and redundancy.
- Actually our phone service is housed in Apple Valley because the cost for
the same service in Lakeville was twice as much.
- Don't know of any other option.
- I was unaware that there were options for providers. My understanding
was that Frontier was our only choice.
- Currently not aware of any other phone service companies available in
Lakeville other than Frontier.
2
Are your current data service requirements being met?
29. If "No", please explain:
- Need to have a backup for the times when Charter has outages.
- Our office is in the process of moving from a remote satellite connection
to a TI line. This will help immensely with speed and efficiency and also
be less subject to orbital risk.
- Sometimes Internet works, it should be on a wireless network, but that
usually doesn't work, so most days the cable is plugged into the computer
directly rather than using the wireless.
- We currently have DSL hook up and cannot receive emails from some of
our customers.
- While both our existing companies provide good service they both come
in the building on the same bundle of copper. If there was a cable cut
(backhoe fade) miles away from us we could lose both Internet
connections. Proper disaster planning dictates that we have another
provider that enters the building a different way than the copper lines.
These could be wireless, cable or satellite. If we lose Internet connectivity
all processes stop (our forklift and desktop computers are run from the
mainframe system in Sioux City) until connectivity is restored. Of our 9
facilities across the United States, Lakeville is the only location that we
are unable to find two different connection methods (other than satellite
which has unacceptable latency).
- Too slow
- Frontier is the only service available for DSL and frankly, they have
horrible service. Our location doesn't currently have the set-up for cable.
It would cost over $3500 to have the lines laid for cable
- There doesn't seem to be many options for other providers in this area.
Unlike our other locations. I have 3-5 different providers I could use, if
needed. Here in Lakeville the only option available to me for the most part
is Frontier.
- Frontier is limited for the services they can provide. Would like the option
to have Qwest for local analog lines and frame relay.
3
Appendix B
Percentages shown have been rounded
Approximately how many employees does your business have in
Lakeville?
101-150 >150
51-100 3% 5~'~
36%
I
21-50
26%
11-20
18%
What type of Internet access does your company utilize?
~i
Cable Modem
7%
xDSL / ATM
50%
2%
T-1
6%
~ i
- Fractional T-1
2%
ISDN_~
4% ' ~ ~ Wireless ~~ti
Other
13% 2% Fractional T-3
Dial-up modem - 2%
2%
Appendix B (continued)
4_
Percentages shown have been rounded
Who provides your current voice service?
Frontier - -
81
Skype
- 6%
Vonage
4%
Charter
2%
Other
7%
Who provides your current data service?
Stonebridge
Communications Other
2% 20%
Charter
I
1
Frontie r
71%
2
`r
Item No.
- City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission
From: David L. Olson, Community & Economy Development Director
Copy: Steven Miefke, City Administrator
Adam IGenberger, Economic Devebpment Specialist
Datie: August 25, 20Qb
Sub,~ect: Update on Strategic F?Ilan 2006 Work Program
The EDC and City Council has approved the following goals. from the 2005-2007
Stiabegk Plan for the 2006 Work Program.
i. Corpletion of a study tv detan~nine the minimum rrirarket value a+f a
" ' ha~using unit that gear sufficient City taxes to p~Y''~'
the City senric~ regained by that unit.
2. Facilitate a process to establish affordable housing goals for the City.
3. ][mprave communication and c~ordirtation with other units of
g~ment on im~rtant community and economic development
iausues facing Lak+eviNe.
4. Create partnerships with Lakeville Chamber of Commerce, QL6A and
other basinesses artd other devebpment e~ociations on mutual
dot ~'+ESS•
5. Advocate for and on behalf of business interests. with airport and rail
planners
The following is a summary as of the status work progress on these goals.
1. Completion of a study to determine the minimum market value of a
residential housing unit that generated sufficient City taxes to pay
for the City services required by that unit.
The consensus of the EDC at the June 27~' meeting was to complete an economic
benefit study that could be used for a generic analysis of casts associated with Gty
_ services for different development types and that this information be used as a tool
for planning purposes. City staff is in the process of preparing a request for
proposals (RFP) t0 complete this study using this type of approach. This RFP will be
distributed to both municipal fiscal and planning consultants.
2. Facilitate a proce~ to establish affordable housing goals.
The EDC reviewed a proposed Scope of Services from Maxfield Research bo provide
additional detailed housing needs analysis for the (Sty of Lakeville at the June
meeting. This analysis was in addition to the County-wide analysis that was
rnmpleted ih November, 2005 for the CDA. Staff has begun the processing of a
CDBG Program Amendment with the Dakota County CDA to obtain approval to utilize
GDBG funds for the eornpletipn of this study.
3. Improve+~rommunicatlon and cx~oMination with other units of
government on important community and economk dement
issues facing Lakeville.
4. Ct+eate partnerships with l.akevilfe Chamber of Commerce; I3L.I~A and
ether businesses and ether devebpment associations om mutual
developmerrt objectives
One of the primary activities related to the pursuit of these goals has 6eeh the re-
convening of the High7ech Subcommittee. The efforts of the SubcorrEmlttee to date
inUude the recently completed survey of local business telecommunieaticros needs.
This information was presented in an earlier agenda item.
The City also collaborated with the Lakeville Area Chamber of Commerce, the City of
Burnsville, and Burnsville Chamber of Commerce to host a manufacturers breakfast
on June 28"' to discuss work force issues facing local industrial park businesses.
Dakota Future, the Workforce Investment Board and the MN Department of
Employment of Economic Development were also co-sponsors. Lakeville businesses
were well represented at this event. A second manufacturers breal~ast bo further
discuss workforce issues has been scheduled by Dakota Future far September 2p"'
5. Advocate for and on behalf of business interests with airport and
rail planners
Staff have been working with Aircraft Resource Center who recently received Clty
Council approval to construct a new 18,000 square foot commercial hanger. at Airlake
Airport.. Pending final approval of the financing for this project and final MAC
approval, construction is expected to commence this fall.
_ MAC staff and their consultarrts are working on the update of the Comprehensive
Plan for Airlake Airport. Staff will present information on this plan update to the fDC
as it becomes available.
Staff wiifcontinue to provide updates and refinements on the progress of each of
tftese goals on a regular basis.
item No. 5
- City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission
From: David L. Olson, Community and E~nomic Development Director
Copy: Steve Mielke, City Administrator
Adam Kienberger, Economic Development Specialist
iDate: August 25 2006
Subject: August Director's Report
The following is the Director's Report for August of 2006.
Proposed Project for Heritage Commons.
While a formal announcement has not yet been made, SuperValu has a signed letter
of intent with developers of Heritage Commons to develop a 68,000 square foot Cub
grocery store at this bcation. Heritage Commons developers have also indicated
that they would develop the additional adjacent retail space at the same time and
thus complete the north half of .Heritage Commons.. StafF has met with
representatives of SuperValu and Heritage Commons to discuss both site and
building design issues. SuperValu has indicated that they would like to get City
approvals yet this fall and construct the building over the winter and have a store
opening in July or August of 2007.
Proposed Kenyon Woods Apartment Project
The City Planning Commission held a four hour public hearing to consider a
proposed 76 unit apartment project along Kenyon Avenue north of 185' Street.
The proposed project is a three-story building with underground parking. The
.project is consistent with current zoning and land use designation and meets all of
the City .zoning ordinance requirements with the exception of a minor parking lot
setback variance and needing a conditional use permit for the additional building
height that results from constructing a residential style roof. There was
considerable neighborhood opposition whose concerns included increased traffic,
loss of trees, pedestrian safety, impact on wetlands and decreased. property values.
The Planning Commission unanimously recommended approval of the project and
the City Council is scheduled to consider the project at their meeting on September
5~'.
Downtown Planning Project
Staff is currently reviewing the first draft of the plan prepared by Hoisington Koegler
based on the preferred concept that was presented at the Community Meeting on
Jul il"' and the joint City Council, EDC, and Planning Commission meeting on July
10 . The Draft Plan will be reviewed by the Task Force later in September or early
October.
Spotlight on Business
ImageTrend was the Spotlight on Business at the August 7"' meeting of the City
Council.: EDC member Jack Matasosky was the presenter and copy of the
information that was presented to the C'~ty Council for ImageTrend is attached.
2006 Manufacturers Recognition Event
The 2006 Manufacturers Recognition Event has been scheduled for Wednesday
October 25"' and-will be held at the Lakeville:Area Arts Center. There will be a
luncheon and it will begin at Noon, Please mark your calendars for this annual
event.
2006 lulu Building Permit Report
The City issued building permits through9uly with a total valuation of $88,189,119.
This compares to permits. totaling $109,127,455 during the same period in 2005.
Included in this valuation were commercial and industrial permits with a total
valuation of $9,626,000 compared. to $27,701,500 through July of 2005. The City
also issued permits for 16.1 single family homes and 118 townhome and condo units
through July. This compares to 136 single family and 215 townhome and condo unit
permits during the same period in 2005. While the commercial and industrial permit
totals are lower through July as compared to last year, there are a number of
proposed commercial projects in the planning stage for which permits will be issued
in the second half of the year.
August 4, 2006 Item No.
Spotlight on Business
lmage7rend
Overview
The Spotlight on Business Program is an outgrowth of the Economic Development
Commission's Economic Development Strategic Work Plan that includes efforts "to inform and
educate residents on benefits of commercial and industrial businesses in order to gain
.community support and appreciation for business growth."
ImageTrend will be featured at the August 7, 2006 City Council meeting. EDC Chair Jack
Matasosky will present the information on ImageTrend. CEO Mike McBrady will be present to
accept the award.
ImageTrend, located at 20855 Kensington Boulevard, is an award-winning software
development company focused on web applications utilizing the Internet and cutting edge
software technology. The business was started in Lakeville 8'/ years ago and continues to
grow and expand its products and services in Lakeville.
With customer service being a key focus of the company, ImageTrend develops a variety of
web applications; Content and Data Management systems, including software for the
Emergency Medical community; Churchwerks, a Student Information System for churches,
schools, and non-profits; and HireTouch, a Web-based applicant tracking system allowing HR
managers to postjohs and track candidates throughout the entire hiring process.
Partnering with companies and organizations such as A.L.F. in Lakeville, the Departments of
Health in eight states (including MN) Medtronic, Russell Athletic, and AgCo. ImageTrend has a
national as well as local presence in the business community.
ImageTrend recently attained Gold Certified Partner Status in the Microsoft Partner Program
and has been part of the Deloitte & Touche Minnesota Technology Fast 50 awards 3 years. in a
row.
Built as a close-knit company with a quality culture, ImageTrend employs high-tech workers in
the computer science field and prides itself on building the "best of the best" employees. They
currently employ approximately 56 area residents.
In addition to employment, ImageTrend provides a substantial tax benefit to the community.
The Dakota County Assessor has assigned an estimated market value of just under $2.5 million
to the building and property ImageTrend occupies. Based on current tax capacity rates, this
market value will result in an estimated contribution of almost $75,000 in local property taxes
going to support the City, Dakota County, and Independent School District 194 in 2006.
Adam Kienberger
Economic Development Specialist
Financial Impact: $ 0 Budgeted: Y/N _ Source:
Related Documents (CIP, ERP, etc.):
Notes:
Rtgon: P~ssucd PERMIT ISSUED REPORT PACE: 1
Date Prinnd: mi3t/3006 City of Lakeville
Parmit Category: All Pertnite
CURRENT RANGE PREVIOUS RANGE
07/01/2006 - 07/31/2006 07/01/2005 - 07/3112005
PERMIT TYPE QTY BASE FEE VALUATION PLAN REVIEW QTY BASE FEE VALUATION PLAN REV IEW'
Building
Single Family -All Inclusive 20 52,082.89 6,555,000.00 29,499.00 9 21,098.35 2,691,000.00 12,277.45
Duplex • All Inclusive 0 0.00 0.00 0.00 0 0.110 0.00 0.00
Twnhse. lJni[-All Inclusive 8 12,870.00 1,200,000.00 2,547.52 26 39,260.50 3,980,000.00 14,319.72
Detached Townhouse-All Inclusi~ 0 0.00 0.00 O.OD 2 3,617.50 400,000.00 2,019.88
Condo 0 0.00 0.00 .0.00 6 7,934.50 770,000.00 1,728.64
Mobile home Install 1 59.50 0.00 O.OU 3 178.50 D.OU 0.00
Dm~ervsy 3 150.00 0.00 0.00 2 100.00 0.00 0.00
Egress Window 1 69.25 2,00000 ~ 0.00 4 220.65 5,500.00 0.00
Stucco Siding U 0.00 0.00 0.00 0 0.00 0.00 0.00
Garages 3 585.75 33,000,00 145.11 2 264.50 13,000.00 0.00
Accessory Bldgs 0 0.00 0.00 0.00 S 458.25 18,000.00 0.00
Reside 13 196.00 17,560.00 0.00 ]0 245.00 21,250.00 0.00
Reroof 45 1,102.50 30,166.00 0.00 39 1,110.00 70,213.00 0.00
Res AddNRepair;Rmdl 12 1,392.80 64,600.00 217.91 17 4,444.50 347,100.00 1,196.81
Deck-Residential 39 3,177.45 116,900.00 0.00 52 4,329.65 155,800.00 0.00
Porch-Residential 2 194.50 8,000.00 0.00 2 264.50 ~ 10,000.00 000
Lower Level -Residential 17 2,53525 131,000.00 0.00 20 3,345.03 180,000.00 0.017
Addition -Residential 2 983.50 94,000.00 614.09 3 1,167.25 94,000.00 532.19
Commercial-New 3 1,04525 70,OW.00 607.10 2 13,946.05 2,853,000.00 9,064.86
Commercial AdddRmdl 4 1,087.00 74,000.00 68136 6 .1,505.50 103,000.00 599.95
Commercial Re-Roof I 149.50 0.00 0.00 I 149.50 O.OD 0.00
Commercial Reside I 0.00 0.00 0.00 0 0.00 0.00 0.00
Industrial -New 0 0.00 0.00 0.00 3 23,243.14 4,989,000.00 15,10835
Indtstral Addn'Rmdl 1 3,233.75 SDQ,000.00 2,101.94 1 3,28125 510,000.00 2,132.81
Tax Exempt AdddRmdl 4 417.00 L4,500.00 0.00 1 181.25 10,000.00 0.00
Tax Exempt -New 4 9,060.00 ~,776,OW.00 5,877.46 0 0.00 0.00 0.00
Swimming Pools 4 498.0(1 0.00 O.DD 12 994.00 0.00 O.W
Fences 0 0.00 0.00 0.00 0 0.00 0.00 0.00
[tcport: Pcnnialssucd PERMIT [SSUF.D REPORT PAGE: 2
nztr primed: o~nvzaos City of Lakeville
Permit Category: All Permits
CURRENT RANGE - PRF.VlOUS RANGE
07!01/2006 - 07/3}/2006 07/01/2005- 07/31/2005
PERMIT TI'PE QTY BASE FEE VALUAT[O:V PLAN REVIEW QTY RASE FEF. VALUATION PLAN RF.VIF.W'
Buildings MavCd 0 O.W. 0.00 0.00 U 0.00 O.W O.W
Buildings llemolished 4 198.W 0.00 U.W 5 247.50 0.00 0.UU
Foundation Only 0 U.W 0.00 0.00 0 0.00 0.00 O.W
Grading 5 375.W 0.00 QOU 3 225.W 0.00 O.W
Miscellaneous 1 83.25 0.00 D.UO 0 0,00 O.W 0.00
SuWtota! 198 91,546.14 II,686,726A0 42,291.49 236 131,811.87 17,220,863.00 58,980.66
Electrical
Single Family 3 45.00 O.W ,0.00 35 2,645,00 500.00 OAO
Duplex 0 0.00 O.W U.OD 0 0.W O.W O.W
Townhouse 1 SU.00 0.00 0.00 34 2,720.00 0.00 0.00
Service Lateral 21 420.50 7W.W 0.00 4 80.00 O.OD 0.00
Furnace/Air Conditioning 18 360-W 5,921.W 0.00 31 620.00 925.00 0.00
In Floor Heat 0 0.00 O.W 0.00 1 20.00 6W.00 0.UU
Multi-Family I 120.00 O.W 0.00 0 0.00 O.W O.OD
Manufactured Home U O.OU 0.00 0.00 D O.W 0.00 0.00
Sub-Panel 0 O.W 0.00 0.00 3 105.00 0.00 0.00
Temporary Service 0 0.00 O.W 0.00 2 95.00 0.00 0.UU
Saver Switch 31 620.00 D.OD 0.00 38 765.00 ~ O,W 0.00
}awn Sprinkler Controller 4 IOS.W 0.00 0.00 0 QW O.W O.W
Cable Box/DSL U 0.00 0.00 O.W 0 O.W O.W' 0.UU
Off Peak 1 20.W O.DO 0.00 0 0.00 O,DO O.OU
Fireplace Blower//goiter 0 O.W O.W D.00 2 80.D0 SW.00 O.W
Res Additions Remodel 10 360.W 5,140.00 0.00 28 ],065.OD 3,350.00 0.00
Lower Level-Residential 3 100.00 O.W 0.0(1 I7 7DO.OD 13,25D.00 O.W
CommerciaVl ndustrial 13 1,279.50 O.W 0.00 3 615.00 0.00 09D
CommerciaUlndustrial Addn/Rmd 24 !,}2625 O.W 0.00 6 160.00 0.00 0.00
Tmf7ic Signal Standard 0 0.00 0.00 0.00 3 15b.00 0.00 D.UO
Street Lighting 0 O.W 0.00 0.00 U 0.00 0.00 O.W
Sprinkler/Alarm I 19.50 bA0 0.00 1 2LW U.OU O.W
.
Report: Pertnitalssue,l PERMIT ISSUED REPORT' PACE: 3
Date Primcvl: 09/31/1006 Clty of Lakeville
Pcrtni[ Category: All Permits
CURRENT RANGE PREVIOUS RANGE
07/0112006 - 07/3172006 07/U1l2DU5 - 07/31 /2005
PERMIT TYPE QTY RASE FEE VALUATION PLAN REVIEW QTY BASE FEE VALUATION PLAN REVIEW
Outlets 0 0.00 0.00 0.00 2 40.00 150.00 0.00
InstitutionallCax Exempt 7 181.00 0.00 (1.W 2 30.00 0.00 0.00
Swimming Pool 5 140.OD 0.00 0.00 10 300.00 12,250.00 0.00 -
Sign 2 40.00 0.00 000 4 80.00 715.00 0.00
Plot Tub 2 40.00 0.00 0.00 2 60.00 250.00 D.00~
heat Pump U 0.00 0.00 000 1 20.OD 0.00 0.0(1
Undefined 2 60.00 D.00. b.00 3 190.00 0.00 0.00
Sub-total ]49 5,116.75 11,761.00 0.00 232 10,561.W 32,490.00 (1.00
Fire
Automatic Fire-Extinguishing Syst 3 128.50 3,300AU 0.00 4 3,385.92 321,742.00 - O.OU
Industrial Ovens 0 0.00. D.UO 0.00 0 0.00 0.00 0.00
LP Gas 0 0.00 O.W 0.00 0 0.00 0.00 O.DO
Paint Booth 0 0.00 0.00 0.00 0 0.00 0.00 0.00
Sub-total 3 128.50 3,300.00 0.00 4 3,385.92 321,742.00 0.00
Mechanical
Healing D QOD 0.00 0.00 2 79.00 0.00 0.00
HeatinglAir Cond 14 553.00 49,022.00 O.OD Il 434.50 19,735A0 000
1l 434.50 0.00 D.00 19 751.00 0.00 O.tNI
Air Conditioning
Commercial Mechanical 15 4,504.76 223,825.00 0.00 1 102.00 3,400.00 D.UO
(ias Piping 5 197.50 SU0.00 0.00 17 611.50 600.00 0.00
0 0.00 D.OD D.00 3 152.00 8,SD0.00 OAO
Ventilation
Refrigeration 0 0.00 0.00 UAO U O.OU 0.00 O.OU
Garage Heater 0 0.00 0.00 0.00 0 0.0(1 O.W 0.00
Add/Rplclftepairs 11 434.50 23,368.00 0.00 4 158.OD 9,380.OD 0.0(1
In Floor Water Heat 0 0.00 O.OII 0.00 2 79.00 0.00 0.00
Miscellaneous 1 39.50 0.60 0.00 0 D.00 O.OD O.W
Fireplace 4 158.00 4,695.00 O.DO 6 237.00 0.00 O.W
Report: Pcrmirslvsued PERMIT ISSUED REPORT PAGE: 4
uete rduma: 6~ral/zab6 City of Lakeville
Pemril Category: All Permits
-CURRENT RANCE - PREVIOUS RANGE
07/07 /2006 - 07/31/2006 07/0112005 - 07/31/2005
PERMIT TYPE QTY BASE FEE VALUATION PLAN REVIEW QTY BASE FEE YALUAT(ON PLAN REVIEW'
Snb-rural 61 6,321.76 301,410.00 0.00 GS 2,664.00 41,615.00 O.W
Plumbing
Commercial tlumbing System 12 2,48 L45 196,397.00 U.00 4 519.00 35,4UO.OU O.UO
Plumbing System U 0,00 OAO 0.00 0 U.DO 0.00 0.00
Water Softener 35 507.50 $827.00 D.UO 44 638.00 9,849.00 O.OD
Water Meler U 0.00 O.UO 0.00 0 0.00 0.00 0.00
Lawn Sprinklers 36 1,422.00 12,315.00 OAO I9 750.50 750.00 0.00
Inside Plumbing Conversion 0 0.00 ~ O.W 0.00 0 0.00 (1.00 O.OU
Addn/Repair/Rmdl 0 0.00 0.00 0.00 3 118.50 0.(10 O.OU
Water Fleater II 159.50 0.00 0.00 10 145.50 0.00 0.00
RPZ 4 ISR,00 16,DU0.00 0.00 U 0.00 0.00 O.UO
Miscellaneous t 39.50 0.00 0.00 U O.DO 0.00 O.OU
Comm/Muti-Family Lawn Sprinkle 7 276.50. 0.00 0.00 3 ! 18.50 0.00 OAD
Snb-total 106 5,U44.45 233,539.00 0.00 R3 2,290.00 45,999.00 U.UO
Sign
Permanent Sign 13 625.00 U.00 U.00 I 1 550.00 0.00 0.00
Temporary Sign 2 50.00 0.00 O.UU 5 125.00 0.00 0.00
Sub-total IS 675.00 0.00 0.00 16 675.00 O.UO U.UO
Sewer/ Water
Sewer Install Only 0 0.00 0.00 UA(1 0 0.00 0.00 0.00
Water Install Unly 1 84.SU. 0.00 0.(10 0 0.00 0.00 O.fl(1
Private Sewer-New 0 0.00 0.00 0.00 1 74.50 0.00 O.DU
Private Sewer-Replace/Repair I 74.50 0.00 0.00 0 0,00 0.00 0.00
SiW Conversion 0 0.00 D.OD 0.00 U 0.00 0.00 0.00
Sewer Cmrversion Only 0 0.00 0.00 QDO 0 0.00 0.00 OAO
Water Conversion Unly 2 169.00 0.00 D.UO 0 0.00 O.OU 0.00
Rcpon: Perm~ferocd PERMIT ISSUED REPORT PAGE: 5
D>;m vdome: o7O VZaoo City of Lakeville
Pcimir Cafrgory: All Yermi[s
CURRENT RANGE - PREVIOUS RANGE
07/0112006 - 07f31/2006 07/01 /2005 - 07131!2005
PERMIT TYPF. QTY BASE FEE VALUATION PLAN REVIEW QTV BASE FEE VALUATION PLAN REVIEW
Commercial - - l 650.00 65,OW.W 0.00 1 112.51 O.W O.W
Draintile Connection 0 0.00 O.W 0.00 0 0.00 0.00 U.W
Miscellaneous 0 O.W O.W O.W 0 0.00 O.W f1.W
Sub-total 5 978.00 65,OW.00 O.W 2 187.01 O.W D.00
Uaer Dented
Re-inspection Fee I 47.00 0.00 0.00 1 O.W 0.00 0.00
Plan Review 0 O.W O.W 0.00 0 0.00 0.00 0.00
Security Esctow 1 0.00 0.00 ,D.W 3 0:00 0.00 O.W
Miscellaneous 0 0.00 0.00 O.DO 1 O.W O.W U.W
Sub-total 2 47.00 O.OD 0.00 5 0.00 0.00 U.00
'Coning
Accessory Buildings 6 120:W 0.00 0.00 7 140.00 O.W 0.00
Above Ground Pool 0 O.OU 0.00 D.DO U O.W O.W O.W
Fences 22 340.W 0.00 0.00 23 460.00 D.00 0.00
Sub-total 28 460.W 0.W O.W 30 600.00 O.W RW
Total 567 110,317.60 12,301,736.W 42,291.49 673 152,174.80 17,662,709.W 58,980.66
Rcry,ri: (immitslsxueA xxxxx pERMIT ISSUEU REPORT PAGE: 1
um~ vdm~d: ognvwos City of Lakeville
Permit CaLL~gury' All Permits
CURRENT RANGE. ---PREVIOUS RANGE
01l01/2006 - 071J1/2006 U1/01/2005 - 07/31/2005
PERMIT TYPE QTY BASF--FEE VALUATION PLAN REVIEN' QTY BASF. FEE VALUATION PLAN REVIER'
BWlding
Single Family-All Inclusive 161 391,781.44 47,975,955.00 219,711.15 136 297,640.55 36,504,000.00 171,145.86
Duplex•All Inclusive 4 6,659.00 640,DOfLW 1,329.76 2 4,457.50 550,000.00 2,5(+5.88
Twnhse Unit -All Inclusive 117 197,754,85 19,510,000.00 50;335.04 I4fi 223,318.30 22,893,000.00 7QI87.98
Detached Townhouse - AU Uulusit I 2,448.75 300,000.00 1,373.94 !9 33,733.45 3,687,000.00 18,777.54
Condo 0 O.W 0.00 .-0.00 50 63,906.10 6,W6,OOO.D0 17,377.7h
Mobile home lnsru0 1 t - 654.50 0.00 U.OU ' 416.50 0.00 0.00
Driveway l3 600.00 0.00 0.00 lU SO0.U0 O.OU IL00
Egress Window 5 270.00 7,500.00 QDO 9 550.40 15,500.00 0.00
$tnCIXl Siding 1 24.50 0.00 0.00 0 0.00 0.00 O.UO
Garages 13 2,60825 148,000.00 852.95 7 1,240.75 68,000.00 190.61
Accessory Uldgs 7 750.75 33,OOO.W 0.00 13 1,256.90 52,300.00 0.00
Reside 72 1,641.50 71,175.00 O.W 59 1,459.75 129,979.00 0.00
Reroof 149 3,646.25 167,115.00 0.00 12] 3,119.00 159,261.00 O.Uf/
Rcs.Addlt/Repair/Rmdl 69 11.281.90 679,600.00 2,95821 66 16,22524 1,363,500.00 2,712.77
Deck-Residential '204 16,474.25 597,800:00 800 254 21,149.05 788,10(1,0(1 0.00
Porch=Residential 20 2,827.00 137,000.00 145.11 22 2,895.50 139,000.00 O.W
Lower Level-Residential 161 24,741.65 1,292,300.00 25i6fi 180 27,727.48 1,453,500.00 394.35
Addition-Residential G 1,428.50 114,000.00 6]4.09 8 2,242.18 158,000.00 832.46
Commercial -New 18 27,945.95 4,461,000.00 1 1,884.24 5 27,555.30 5,525,DOO.D0 17,910.87
Commercial AdddRmdl 26 24,462.26 3,750,OOO.DU 15,118.52 51 58,723.95 9,875,500.00 36,241.68
Commercial Re-Roof 4 598.00 0.00 0.00 4 598.00 0.00 R(Kl
Commercial Reside 2 0.00 0.00 D.OD 1 O.W 0.00 D.00
Industrial-New 1 2,645.75 395,OIX1.D0 1,719.74 3 23;243.14 4,989,000.00 15,108.35
Industrial :lddn/Rmdl Il 9,007.00 1,020,000.00 5,583.84 5 30,709.75 7,312,000.00 19,916.32
Tax Exempt AddntRmdl 6 637.00 25,500.00 0.00 2 292.50 15,000.00 (1.00
Tax Exempt-New 4 9,060.00 2,776,000.00 5,377.46 I 139.25 7,W0.00 O.OfI
Swimming Pooh 23 2,038.50 0.00 0.00 46 4,477.00 O.INI 0.(10
Fences I 38.,'5 1,000.00 0.00 D 0.00 O.OU 0.11(1
' Report: Pcrm1Q?xsunl PERMIT ISSUED REPORT PAGE:
oem Priutca: o7Ulizao6 City of Lakeville
Permit Cn[egory: All Permiu
- CURRENT RANGE PREVIOUS RANGE
O V0U2006 - 07/31/2006 01/07/2005 - 07/31/2005
PERMIT TYPE. QTY BASE FEE VALUATION PLAN REVIEW QTV BASE FF.E VALUATION PLAN REVIEW
Buildings Moved U 0.00 0.00 0.00 0 0.00 0.00 O.W
Buildings Demolished 12 594.D0 0.00 0.00 15 594.00 O.W O.DO
Foundation Only 2 1,147.62 88,000.00 746.01 4 4,59D.00 605,000.00 2,983.50
Grading 9 675.00 0.00 0.00 6 450.D0 0.00 0.00
Miscellaneous 10 2,086.75 16,000.00 0.00 4 62 L0S 2,022,985.00 274.01,
Sub-fatal 1,142 746,529.67 84,205,945.00 324,505.721,256 853,832.59 704,318,625.00 376,619.94
Electrical
Single Family 53 3,490.00 U.00 .0.00 390 27,945.00 19,500.00 0.00
Duplex 0 0.00 0.00 0.00 2 160.00 5,000.00 0.00
Townhouse 8D 6,280.00 0.00 0.00 68 5,322.00 0.00 0.00
Service Lateral 111 2,220.50 I,IDO.DO 0.00 48 960.00 1,000.00 O.W
Furnace/Air Conditioning 132 2,715.00 41,61200 0.00 96 1,960.U0 1,925.00 D.UO
In Fluor Heat 4 120.00 500.00 0.00 IU 260.D0 7,028.78 U.W
Multi-Family 7 120.00 O.OII 0.00 0 0.00 0.00 0D(1
Manufactured Home 10 250.00 0.00 0.00 4 95.00 0.00 0.0(1
Sub-Panel 9 250.W 201.00 0.00 13 334.50 450.00 O.INI
Temporary Service 5 130.00 100.00 O.UO 7 235.00 O.UO O.OU
Saver Switch 142 2,840.00 6,075.00 0.00 ] 30 2,605.00 ~ 0.00 0.00
Lawn Sprinkler Controller 6 145.00 2,500.00 0.00 0 0.00 0.00 0.00
Cable Box/DSL ( 30.00 ~ 0.00 0.0f1 0 0.00 0.00 O.UU
Off Peak 30 600.00 0.00 0.00 0 0.00 0.00 0.00
Fireplace BlowerlIgniter 10 360.25 3,020.00 0.00 12 480.00 5,800.00 0.00
Res Addi[ion/Remodel 44 1,595.00 15,892.00 0.00 117 4,495.00 29,614.50 O.OU
Lower Level -Residential 19 720.00 1,6oz.DD O.OU 170 6,899.50 53,175.00 O.OU
Additional Inspections 0 0.00 0.00 0.00 2 60.00 0.00 O.OD
CommerciaVlndustrial 42 3,493.00 0.00 0.00 53 6,869.75 O.OD 0.00
CommerciaVLtdustrial Addn/Rmd 133 7,570.75 0.00 0.00 79 3,866.00 0.00 O.OU
'fratfic Signal Standard 0 0.00 0.110 0.00 5 330.00 0.00 0.00
Street Lighting 1 20.00 O.UU 0.00 U 0.00 0.00 0.011
Ecpon: Pcrmiulssucd PERMIT ISSUED REPORT PACE: 3
Daro Prinre4: o9A ViWF City of Lakeville
Permit Category: ,111 Pennile
-CURRENT RANCE PREVIOOS RANCE
01 /01 /2006 - 07/31/2006 0]!01!2005 - 07/31/2005
PERMIT TYPE QTY BASE FEE VAI,OATION PLAN RE VIER' QTY BASE FEE VAlAATION PLAN REVIEW
Sprinkler/Alarm- 8 187.110 O.W O.OU ]R 702.50 0.00 U.OU
Outlets 17 440.W 7,125.W 0.W 2 40.00 150.00 0.00
InstitutionaLTax Exempt 20 586.00 O.W 0.00 18 SS8.U0 O.UU 0.0(1
Swimming Pool 19 565.00 I,SW.00 0.00 39 1,260.00 47,665.00 0.00
Sign 12 325.00 3,9W.OU 0.00 ]8 360.00 715.00 0.00
Hut "Fub 8 160.D0 4,50190 0.00 19 405.W 2,750.00 0.00
Heat Pump 0 Q00 U.W b-.W Z 40.00 O.UO 0.00
Undefined 25 575.00 O.W 0.00 14 3,015.00 0.00 0.00
Sub-total ~ 942 35,787.50 89,fi33.00 9.00 ],336 69,257.25 174,773.28 O.W
Hire
Fuel Tank 0 0.00 "0.00 0.00 6 298.66 13,77790 O.W
Automatic Fire-Extinguishing Sysl 35 6,429.57 509,694.68 0.00 52 13,524.11 1,075,125.00 090
[ndustrial Ovens U 0.00 0.00 0.00 U O.W 0.00 0.0(1
LP Gas 4 ]58.W 0.00 0.00 0 O.W O.W 0.00
Pautt Booth 0 0.00 0.00 0.00 0 O.W 0.00 O.W
Subtotal 39 6,587.51 509,694.68 QW 58 13,822.77 1,088,902.00 O.W
Ntechanical
Heating 17 671.50 0.00 0.00 50 2,242.00 27,OOO.W U.W
IleatinglAir Cond 76 3,002.W 269,486.W 0.00 62 2,573.00 98,008.30 0.00
Air Conditioning 42 1,659.W -0.00 0.00 41 1,620.00 0.00 0.(1(1
Commercial Mechanical 53 21,282.74 1,751,726.00 0.00 48 Ifi,414.80 1,454,007.00 0.0!1
Gas Piping 2S 993.00 3,970.00 O.OU 55 2,503.00 38,095.00 O.W
Vemilation 3 250.53 16,101.W 0.00 14 1,529.98 105,293.97 0.00
Refrigeration 0 0.00 O.DO 0.00 2 5,717.W 561,585.00 0.W
Garage !!eater 2 79.00 I,W0.00 0.00 2 79.00 D.00 O.W
AddlRplci Repairs 71 1,224.50 83,817.00 0.00 l8 7/1.00 42,246.00 U.OU
In Floor Water lleat 1 39.50 0.00 0.00 2 79.W O.OU 090
Miscellaneous 2 79.W 0.00 O.OD 7 276.50 2,IW.UO Q110
acPun: lkrnyslssuca PERMIT ISSUED REPORT PACE: 4
Uatc Priem: sairtaatw Cip~ of Lakeville
Pormil C'atc8ury: All Permits
CURRENT RANGE - PREVIOUS RANGE
01/01/2006 -07/31/2006 01101/2005- 07/31/2005
PERMIT TYPE QTY BASE FEE VALUATION PLAN REVIF,W QTY BASE FEE VALUATION PLAN REVIEW
Fireplace 51 2,014.50 29,040.00 0.00 59 2,330.50 44,608.09 0.00
Sub-total 303 31,295.27 2,155,740.00 0.00 360 36,075.78 2,372,943.36 0.00
Plumbing
Commercial Plumbing System 4l 8,707.98 679,512.OU 0.00 46 10,905.37 925,947.00 0.00
Plumbing System 1 39.50 0.00 O.DO 3 267.50 17,800.00 0.00
Water Softener 200 2,857.00 26,918A0 0.00 222 3,221.50 40,100.50 U.00
Water Meter 8 0.00 _ 0.00 O.OD 2 0.00 O.UO 0.00
Lawn Sprinklers 106 4.187.00 29,130.00 O.OD 81 3,199.50 13,480.00 U.00
Inside Plumbing Conversion 6 321.50 0.00 0.00 2 79.00 0.00 U.00
Addn/Repair/Rmdl 7 276.50 0.00 0.00 2U 790.00 0.00 0.00
W'aterHeater 713 1,600.00 4,400.00 0.00 79 1,147.00 1,900.00 Q00
RPZ 23 909.00 16,240.00 0.00 72 474.50 383.99 O.W
Miscellaneous 3 74.00 0.00 0.00 2 79.00 0.00 0.00
Comm/Muti-Family Lawn SprinkL 14 553.00. D.DO 0.00 13 513.50 0.00 OAD
Sub-toml 522 19;530.48 756,200.00 0.00 482 20,676.87 999,611.49 U.W
Sign
Permanent Sign 53 2,775.00 O.UU 0.00 70 3,800.00 0.00 O.W
Temporary Sign 28 675.00 0.00 0.00 28 700.00 0.00 0.00
Sub-total 81 3,450.00 0.00 OAO 9R 4,500.00 OAO 0.00
Sewer/Water
Sewer Install Only I 84.50 0.00 0.00 U 0.00 O.OD 0.00
Water Install Only 6 632.50 21,000.00 U.DO 0 0.00 0.00 0.00
Private Sewer-New 1 74.50 0.00 O.OU 1 74.50 0.00 O.OU
Private Sewer-Replace/Repair 1 74.50 0.00 0.00 2 189.00 0.00 0.00
S/W Conversion 5 422.50 0.00 R00 2 169.00 0.00 0.00
Sewer Conversion Only 0 U.DO 0.00 O.W I 84.50 0.00 0.00
f(evort Yrnnitslssaal PERMIT ISSIIF.O REPORT PAGE: 5
ome Y~mtee: somntaw City of Lakeville
Permit Category: All Pmmils
CURRENT RANGF. -PREVIOUS RANGE, -
01/01/2006 - 07/31!2006 0 V01l2005 - 07!31/2005
PERMIT TYPF, QTl' BASF. FEE VALUATION PLAN RF,VIEw QTY BASE FEE VALIJATIUM PLAN REVIEW
Water Conversion Only 2 169.00 0.00 0.00 0 0.00 0.00 Q00
Commercial 9 4,583.57 449,907.00 0.00 6 2,107.51 172,600.00 O.UO
Drain[ile Connection 0 0.00 0.00 QDO U 0.00 O.OU O.OU
Miscellaneous 3 118.50 0.00 0.00 2 39.50 0.00 0.00
Sub-total 28 6,!59.57 470,907.00 U.UU 14 2,li64.01 172,600.W 0.00
User Defined
Re-inspection Fec 4 188.00 0.00 O.OD II 470.00 0.00 0.00
Plan Review 2 0.00 0.00 ~ 0.00 8 0.00 0.00 0.00
Security Escrow 5 0.00 0.00 0.00 3 0.00 0.00 0.00
Miscellaneous 6 U.OQ. 1,000.00 0.00 2 0.00 0.00 0.00
Sub-total, 17 IR8.00 1,000.00 0.00 24 470.00 0.00 O.OU
'Lonin>;
Accessory Buildings 32 640.00 0.00 0.00 34 680.00 0.00 O.UO
Above Ground Pool U 0.00 0.00 0.00 0 0.00 0.00 0 UU
Fences IUS 2,060.00 0.00 0.00 134 2,680.00 0.00 O.IIU
Sab-total 140 2,700.00 O.W 0.00 168 3,360.00 0.00 U.OU
Total 3 ~I4 852,228.06 88,189,119.68 324,505.72 3,796 1,004,659.27 109,127,455.13 376,619.94
Economic Development Association of Minnesota Page 1 of 3
~ f
^ ,
iii ~L
AUGUSTISEPTEMBER ISSUE N$WS from E~A~~
www.edam.org ,loin EDAM today and get a special price for the rest of 2006.
Hurry, this deal won't last long! r_e2_d more
From the President
s. EDAM Summer Conference
The. EDAM Summer Conference was a great success. To see more
photos, click hire.
i ~ ~ ~
Fellow Members,
I hope everyone is enjoying a t
summer and making time to ~ r,g ,
have some fun along with the
work, EDAM started the summer
with its annual Summer
Conference at Ruttger's. In
addition to having wonderful
weather and some time to enjoy
outdoor activities, the r .F
conference provided another
powerful education experience Stacie Kvilvang, Ehlers & Associates; Acting DEED Commissioner
for attendees. Ward Einess, Linda Larson, CRESA Partners; Mark Loftus, DEED;
Aaron Backman, City of Mounds View; Sid Inman, Ehlers &
The conference was kicked off Associates; and Donn Hagmann, Medtronic.
with the Edie Awards.
Congratulations to all of the
winners! For a press release
with details, click Here. EQAM FoUnda#ion
read more Gaining Momentum: In a recent message, I encouraged EDAM
members to take full advantage of the Foundation's programs, as
the Foundation was about to enter a new program funding cycle..
read. more
Summer Calendar Member News
Sept. t8-22 Dennis Welsn Joins Barsness Consulting, 1nc.: BCS is pleased to
announce the addition of Dennis Welsh to the company. read more
Economic Development
http://edam.org/displaycommon.efm?an=1&subarticlenbt=79 08/15/2006
Economic Development Associafion of Minnesota Page 2 of 3 +
Fi,?ance Professional Bun;svi3ie Helps'8ustnesses in Emergency O e; ations
"e;~tifiication Froyrarn gefriannhtg: Bringing businesses the tools they need to succeed in
{ .'ai_fs Burnsville is a priority for the city ra~c m-ire
Sept. 21 Cy.~ex Building New Manufacturing Facuity in Owatonna: Cybex
EDAM Third Thursday International, Inc., a leading exercise
Luncheon: City of Hutchinson equipment manufacturer, announced that they
get dstai!s ~ _ will build a new state-of--the-art manufacturing
facility in Owatonna, Minn. rear! more
Oct. 5
DEED Conference Diversified Construction to t3uiid Qdoba Mexican Grill
Restaurants: Diversified Construction, a St. Louis Park-based
Commercial General Contractor, has recently been awarded
Corrections to the contracts to build new Odoba Mexican Grill restaurants in
EDAM Directory
Minneapolis and Burnsville. read_m_ ore
Corporate membership:
Colliers Turley Martin Tucker KKE's Design Meer Green Goals of New North Dakota High
Alan Leimess, MAI, CCIM; School: KKE Architects, Inc. applied sustainable design principles to
Marty Wolske; Roger Skare; meet both the "green" goals and educational initiatives of Turtle
Chris Little; Josh Huempfner; Mountain Community High School of Belceurt, N.D. read more
Todd Mongrain
200 5. Sixth St., Ste. 1400 • Cardinal Pointe Hosts Groundbreaking Event 9n
Minneapolis, MN 55402 Oakdale: On Friday, June 2, Cardinal Pointe
Phone: 612.347.9337 Cooperatives celebrated its groundbreaking event t
Fax: 612.347.9389 with future residents and the public. The new
aleirness@ctmt.com Senior Housing Cooperative is located 1227 Hadley
Avenue North, at the four-acre site of the former
Two-person membership: Faith Bible Church. rear. m.re
Tribute Capital
Ryan Pelstring, Pat Pelstring Another "Groundbreaking" Rondo Project: In a groundbreaking
1107 Hazeltine Blvd, Ste. 118 • move, persons with developmental disabilities will be employed on
Chaska, MN 55318 the Rondo Library and Housing construction project. read m
_re
Phone: 952.361.5445
cyan@tributecapitaLcbm City of Lakeville Developments: A new Best Buy is proposed for
the Timbercrest development located on Kenrick Avenue just off of
Bruce W. Halbasch 185th SVeet and across from the existing SuperTarget. reams
more
Vice President, Marketing
Kraus-Anderson Construction Landform Welcomes New Staff Member, Moves Minneapolis
Company Office: Landform is pleased that Ellen Stewart, RLA, has joined its
2500 Minnehaha Ave. • Planning team. read more
Minneapolis, MN 55404
Phone: 612.721.7581 , Cify of Norwood Young America Announces
Fax: 612.721.2660 Industrial Park Groundbreaking: After several
Cell: 612.668.2663 years of consideration and planning, the city of
brute@kabld.com Norwood Young America finally broke ground on
a new 60-acre industrial parkin late June. read
I
http:!/edam.org/displaycommon.cfm?an=1 &subarticlenbr=79 08/15/2006
Economic Development Association of Minnesota Page 3 of 3
1
!?7t3f°
Kevin Maas
Facilities Manager Carson Real Estates First Prcject ir, the Easd
Carver County Metro Comes to Dakda!e On June 29, 20D6,
600 E. Fourth St. • Chaska, MN the city of Oakdale and Carlson Real Estate
55318-2183 Companies celebrated their groundbreaking _ ,
952.361.1557 direct event with the public. rr'aa mire
kmaas@co.carver. mn.us
Rosemount: Fast Growth, Higfs Demand for Land; New Census
student Bureau estimates indicate that fhe city of Rosemount posted the
Trisha Rosenfeld fastest growth in Minnesota between mid-20D4 and -2D05. rg~d
705 Marion Dr. • PO Box 912 • more
Arlington, MN 55307
507.964.2652 Vital Images Phase II Under Way in Minnetonka: PCL
trisharpsenfeld@aol_com Construction Services, Inc., Burnsville, is proud to announce it is
under way with the second phase of an office and lab build-ouf for
Sue Vergin Vital Images. rzad more
City Administrator
City of Corcoran Wright County Economic Development Partnership: The
8200 Co. Rd. 116 • Corcoran, Partnership held a Development Series Luncheon Seminar at
MN 55340 Riverwood Conference Center on July 19. !°a~~ rngre
763.420.2288
svergin@ci.corcoran.mn.us Target Northern Campus Approved; On June
26, 2006, the Brooklyn Park City Council and
Economic Development Authority approved a
•e--,- • , , Contract for Development with Target
Corporation related to a proposed corporate campus expansion and
adjoining mixed-use urban style development. read ,more
C1LSTdOa~Cd$~R' ~
Fae pwt 3rse5ppa~m u.R°Jk emeucs.:
C:.rgE SSwldran, ~itp A~iwrsNa3ur
t~s}7x.7m ~+a~.aw.w;~r...~
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fSeWak, .\{\55374 4~;: /6+51)T~-Y.41a
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http://edam.arg/displaycommon.cfm?an=1 &subarticlenbt=79 08/15/2006
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s MtxwF,tt+ousJSr. Pwut Bustxrss Jouwwnt ~ twint9tiws.hizjoumals.com
Mayo to staff Lakeville clinic ~
RYUURENWILBERT HERLTH CARE Carlson Marketing. b
.STAFF WRITER
-Maya Health System is putting its toe in the clinics and hospitals in 60 communities in
Cities water by partially staffing a $5.6 Minnesota, Wisconsin and Iowa. The facilities In its quest to emphasize its creativity, up or
iailion Northfield Hospital clinic slated for aze staffed with Mayo Clinic physicians and Carlson Marketing hired advertising veteran Akt
iakkeville. other local doctors. Jo-Anne Ebensteiner to take the reins as chief gram:
~ This wID be the farthest into the Twin Cites Northfield Hospital entered its partnership creative officer, anewly-created position in CEO
{he Rochester-based system has ventured, but with Mayo in June 2005 to provide space for the Minnetonka company. tafion
~Ys not part of a strategic plan to move further Mayo physicians to practice. It does not become Former creative director at a crea
jnto the metro, said Joe (?'Keefe, a Mayo part of Mayo's system, but expects the partner Martin~Williams and execu- ing ag
~pokesman. shipwIDdtawcpstomerstoitslocatons. the creative director at thatg
~-Northfield Hospital, an independent hospital "We kndiv folks in that area are very inter- Campbell Mithun, both of Ebt
i6s~med bg the city of Nordhfield, will staff the eyed in a clhiic staffed by Mayo physicians," Minneapolis, Ebensteiner brillie
X5,000-square-foot clitiic with physicians from said David Oliver, vice presidentofclinicoper- has directed campaigns in a twig t
farmon Valley Clinic, which is parCof Mayo atiorisforNOrthfieldHospital."IYsanazeathat number of marketing disci- the c
T~althSystean's network of facifites. we believe right now is underserved." Alines, including retail -Mark
The onetime,agreement with Cannon That's an understatement, said Sara Criger, Ebet9s;~ner advertising; interactive comp
~aRey is cTesigned to help Norttfield Hospital .president of Fairview Ridges Hospital, which advertising and promotion. get t
~rtutapdr~G'iiltqualityphysiciansinFfaom- serves Lakeville, Farmington, Bumsvillie and For the pastyearshehasworkedasaconsult- progr
Iawrlle:`0'Kt~fe said. Apple Valley, antfotvari0us Minnesota companies. "It's
'¢~May4 EiEaTth Systems operates regional Census Bureautlatashowmorethan66,000. Ov~rhercareer,she'sworkedvuiththekinds renty
' " people lived in Lakeville and Farmington in ofbig-mine bratids- such as Best Buy, Dairy be a I
` , NORTHFIElD NOSPRAL '1004. The combined populations will grow to Queen, Cargill and Target -that often show it on
:i>;ity:Nodhfrekl 80,OOD bl' 2010, according to Metropolitan
i,CEO: Kent Bank Council projections. " ~
~Busittess: Hospital, region- That leaves plenty of room for anotherclip- \ a g Y Group ~ S 111 a k ~ 11
al netvrork of primary- ic, Criger said. ~J
tare t9rtics arM specially ' "Not only is there mom.. there's a lot. of '
`U faa7iUes demand,' she said. "T'm not surprised that the After a tough 2005, The Sage Group Inc. prope
=fourKkd: 1906 soutfi-suburban azeais where those hospitals .expects to double net fee income this gear: presic
~i:mployt?as: 450 acid health cares stems [are movi
Y n81 ° At are end of last year, "Th
Courtttess~ted.Rite,., : _ CanstttictionofNorthfield'Slakevilleclintcis Minneapolis-based public- Raym
" Dakota, Scottand Goodhue schedtiled to begin next spring. k will include relations firm reported net Nev
iNeb situ; services such as primary care, internal meth- fee income of $263,294, a Rosen
4 wwxtttorttdieidhospital.org , tine, pediatrics, general stugery and QB-GYN. - steep decline from fee -Rosen
income of $577,126 in 2004. Invest
f@lgartelccam~l61A~~ But a new ,office, Fou
revamped Web 'site works
` (wwwsagegrp.com) and _Apoge
Raymond "glowing client list shotild
~ Metro Transit parks
After competing against multiple agencies one>y
inarigorousRPPprocess,Pedscopeheldonto contr
"F: its Metro Trartsit account. Pert
The Minneapolis marketing ftrm will work agent
with the organization, one of the lazgest tran- millio
sit systems in the country, for another five A1uux
years to help raise its awareness in the Twin List of
Cities and drive ridership.. 155 ex
Periscope has worked with Metro Transit bIDing
since 1998. The three-year-contract mrith two
.The Unks Group lane
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Minneapolis/St. Paul Business Journal -August 14, 2006
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Business Pulse Survey:
Who is your cktoice for governor
Builders await demand
Industrial developers have built on spec, but tenants are balking at higher lease rates
Minneapolis/St. Paul Business Journal -August 11, 2006
by Sam Black
Staff Writer
Sticker shock.
The phenomenon tong common at auto dealerships and now gas stations could be flattening the
industrial real estate market.
Consumers usually react to sticker shock two ways. They either decide not to buy, like they might on the
caz lot, or they grit their teeth and pay the going rate regazdless of price, like at the gas pump.
Tenants in the market for industrial real estate are facing a similar dilemma. Those considering
expansion into newly-built industrial space are seeing a big increase in rates and that's causing
trepidation.
Here's the big question: Is the slip in demand a mere hesitation, like at the gas pump? Or are tenants
going to put off new space indefinitely, like at the car lot?
Demand for real estate is usually measured in terms of absorption, the change in total leased space from
one point in time to another. And absorption is way behind the pace of 2005.
Only 532,000 squaze feet were absorbed in the first half of 2006. That's only about 14 percent of the 3.7
million square feet absorbed in all of 2005, according to figures provided by United Properties,
Bloomington.
"Tenants are taking more time to make decisions to find new space," said Mark Sims, a broker at United
Properties.
Land and construction costs have risen significantly since the last major period of new development in
the late 1990s and that's created a new "pricing paradigm" for industrial space, he said.
"It's enough of a change in the economics that they've had to say, 'OK, let's make sure we're going out
and doing our homework.' "
The drop in absorption, coupled with new space added to the market, caused vacancy rates to dip
slightly as well.
Overall vacancy was at 13.7 percent at the end of the second quarter, up from 13.0 percent at the end of
last year, according to United Properties.
Many industry experts say the drop in demand is just temporary, however.
Sims, at United Properties, expects companies will wme to grips with the new prices and expand. He's
predicting about 1 million total squaze feet will be absorbed in the Twin Cities industrial market this
year.
"I don't think we're going to match last year's absorption, but I do think it's going to pick up
dramatically," he said.
Big jump in development costs
Dave Jellison, vice president for Liberty Property Trust in Eden Prairie, said rents are leveling off from a
recession period when landlords were willing to take whatever they could get just to keep existing
tenants in buildings.
He agrees that there's been a pause in signed deals, but he said there are still a lot of prospective tenants
hunting for space and he also expects activity to pick up in the second half of the year.
The sticker shock was caused by a 25 percent increase in development costs for commercial office and
industrial buildings over the past five yeazs.
One factor pushing up the price of new construction is the rising cost of materials, such as steel and
anything that uses petroleum-based products, like roofs and pazking lots.
However, increasing costs for land are still the No. 1 driver of price, Jellison said.
Because it used to be hard to find anything affordable, land used to be a four-letter word, Jellison said.
"Now it still is a four-letter word, and you spell it G-O-L-D," he said.
Developers still building
Developers aze still bullish on the industrial market; more than 4.4 million square feet of new space is
under construction or on the drawing board.
Pat Mascia, senior vice president and head of Minneapolis operations for Duke Realty, agrees that
demand has taken a pause.
"It feels like we're in between times. How long will it last? I don't know."
Indianapolis-based Duke is completing two industrial buildings in Brooklyn Park that have leased up.
Mascia said the company is evaluating whether or not to build more speculative space (without signed
leases from tenants) at its Otsego industrial park.
It's also got land under contract to buy in Afton and Lakeville, but is waiting to see how the market
shakes out before starting on any projects there.
Mascia said land costs will definitely impact rents. Cheaper sites or ones that landlords have controlled
for yeazs will be able to offer lower rents and should fill up first, he said.
Labor costs also aze pushing up the price of new development, Mascia said. Even though there aren't a
lot of tall cranes around the Twin Cities, there are a few relatively large projects that are occupying the
time and attention of subcontractors. Workers are busy building Duke's Norman Pointe office tower in
Bloomington and Medtronic Inc.'s Cardiac Rhythm Management campus in Mounds View.
"It's tough to find a bunch of subs to bid jobs. We're not seeing the same amount of competition, so
pricing is a little higher," Mascia said.
So why build?
Matt Oelschlager, who works in the northern half of the Twin Cities for CB Richard Ellis, said the
sticker-shock effect maybe slowing expansion decisions, but it is helping landlords of existing
buildings.
Average rental rates in the Twin Cities --which have been close to flat for the past five years, are $8.07
per square foot for the office component of an industrial building and $4.47 per squaze foot for
distribution or warehouse space, according to United Properties' statistics.
There's a growing gap in the disparity between rents for existing and new space, however. Quoted rates
for new construction range from $10 to $12 per square foot for the office component of an industrial
building and between $4.75 and $5 per squaze foot for warehouse space.
Oelschlager is part of the team that leases space in the 700,000-square-foot Mounds View Business Pazk
on behalf of its owner, RREEF Funds, a San Francisco-based pension-fund adviser. That property has
"seen good activity" and only 75,000 squaze feet of space is available, he said.
But Oelschlager said as older buildings fill up, eventually companies will come around and pay for new
construction.
They may want to upgrade their image or need more functional types of space that have more flexibility
to an•ange machinery or racks that store goods, he said.
sblack@bizjournals.com ~ (612) 288-2103
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Builders retool as housing cools Page 1 of 3
.CQIi1 i MINNF.APOLLS-ST.PAUL 1!+IINNESO'f
Last update: August 15, 2006 - 10:43 AM
Builders retool as housing cools
A slowdown in the housing market has prompted builders and developers to
delay, redesign, and ramp up marketing on home and condominium projects in
the southmetro.
Sarah Lemagie
When developer Schafer Richardson got the results back earlier this summer
from a market study of a redevelopment project that the Twin Cities company is
working on with the city of Eagan, the company realized it had to rethink its
plans.
The study said the company could expect to sell one-and-a-half to two
condominiums per month under current market conditions, said Schafer
Richardson project manager David Frank. Simple math made it clear that selling
all of the Eagan project's 500 or so condos could take many years.
The company went back to the Eagan City Council and asked for extra time to
re-evaluate the project. Frank said the company will likely decide to build fewer
units or substitute apartments or co-ops for some of the condos.
In Apple Valley, developer Pedersen Ventures came to a similar conclusion last
month with a condo project in the city's planned pedestrian-friendly Central
Village. At a July 27 meeting, the City Council reluctantly approved a revised
proposal that would allow Pedersen Ventures to lease 60 percent of the units
instead of selling them.
Council Member John Bergman opposed the switch, saying it went against the
original vision for the Central Village as a community where people could shop,
work and settle down.
"If everybody owns it, you take more pride in it. If you rent, you're moving on," he
said.
Rising mortgage interest rates and a glut of available housing this summer have
led to a cooldown in the housing market south of the river, and not just with
condos. Developers and builders are responding by rethinking projects, building
fewer homes, delaying work on new subdivisions, and offering extra incentives
to prospective home buyers.
Cities across the south-metro are reporting a drop in the number of building
permits issued for new homes. In Lonsdale, which has seen fast growth in
recent years, the city issued 39 permits during the first half of 2006, less than
half as many as it issued during the same period last year.
"It's been real slow," said city planner Tom Washa, adding that the city hasn't
http://wwwstartribune.com/332/v-print/story/611804.htm1 08/15/2006
Builders retool as housing cools Page 2 of 3
been asked to plat any new housing developments this year.
In Belle Plaine, some developers are scaling back the size of new subdivisions,
said community development director Holly Kreft.
And in Savage, City Administrator Barry Stock said some approved housing
developments are taking longer to actually sprout homes.
"Just by driving around town, you can see that there are lots for sale, and there's
nothing happening on them," he said.
Developers and builders emphasize that the current slowdown is hardly
catastrophic, but simply contrasts with the phenomenally hot market of the past
few years.
"I don't consider it a soft market at all," said Bill Johnson, president of Lakeville-
based MW Johnson, which has been in business for 35 years.
'The housing market was slow when (interest) rates were 18 percent, but when
they're in the 6 percent range, that's really, really low," he said.
"I think it's more of a correction than anything. People have built up a lot of
inventory," said Chris Simonsen, vice president of builder development at Eden
Prairie-based Insignia Development. Simonsen said the company is adjusting to
the surplus of available lots by holding off until next year with work on
Tullamore, a 148-home Lakeville development between 1 fi0th and 170th streets
on Pilot Knob Road.
Just west of Tullamore, Tradition Development has pulled back on plans for the
first phase of Spirit of Brandtjen Farm, an upscale neighborhood that. will
ultimately include 2,100 condos, apartments, townhouses and single-family
homes. Initial plans called for 172 single-family lots, said Tradition partner Rob
Wachholz, but the Edina company decided to delay utility and street
construction on half of them.
Spirit of Brandtjen Farm, which began presales this summer, has so far
attracted three buyers - a somewhat disappointing figure, said sales staff, but
one that's partly due to the difficulty prospective home buyers are having selling
their current houses.
'They're not wanting to move forward until they actually know that they have a
buyer for the property," said Tradition sales manager Holly Johnson.
To jump-start sales, Spirit of Brandtjen Farm has offered to pay the mortgages
for six months on the first 20 homes it sells.
Severson Homes, one of the development's builders, is also coming up with
incentives at its other sites, including free homeowners association and golf club
memberships, said company vice president Helene Severson.
http://www.startribune.com/332/v-prinUstory/611804.htm1 08/15/2006
Builders retool as housing cools Page 3 of 3
Though sales are down from last year, Severson said she was optimistic about
the housing market.
"It will peak again," she said.
Sarah Lemagie • 612-673-7557
C§2006 Star Tribune. All rights reserved.
http://www.startribune.com/332/v-prinUstory/611804.htm1 08/15/2006
Annua! Market Survey Shows Little Change in .Rents
To ensure that rents being charged for Section 8 as- almost two percent over the past two years shows that
sisted units are reasonable when compared to simi- the rental market is on the rebound. With rising mort-
lar units in the private rental market, the CDA annually gage interest rates, many people are now opting to rent
conducts a survey of over 20,000 rental units in the instead of purchasing a home.
county. The results from this year's survey showed a A summary of the 2006 Rental Market Survey is
slight change in average rents and a decrease in the available on the CDA's Web-site at www.dakotacda.org.
average vacancy rate. Click on Reports under the Reports, Data & Resources
As illustrated in the graph, rents haven't changed menu. If you have questions about the survey,. call Tim
much over the past five years. Last year, rents increased Johnson at (651) 675-4433.
by 0.92%. However,
affordability still re-
mains abig issue for Average Rents 2002-2006
modest income work- $1300 -
ing households. -1t - ~
takes an annual in- $1,200 ~ $1,148 $1,188
come of approximately $1,100 -j
$48;000 t6 afford rent $1000
for an average three- $892 $900
' bedroom unit.' This is $900 ~ ~ J I
equivalent to an hourly $800 $740 $735
wage of $23. $700 ~
The overall county ; , ,
.vacancy rate declined $600 j I
to 618% t~s oompared $500 - - - _
tsa 7:64%` in 2005. 2002 2003 2004. 2005 2006
~5!hi[d~the':vacancyK~te
is still above the opti- .
mai rate ofb%, the fact ~ 1 bedroom 2 bedroom 3 bedroom
that it has decreased - - - - - J
'
First Residents Move Into Lafayette..Townhomes
Fourteen families. moved into .their new ~ ' r}-a' 'f' ' v
townhomes in Inver Grove Heights at the end of
June. Lafayette Townhomes will be completed in
i ~
three phases with eight more families moving m at ~
r I
the end of July and the final eight moving in at the ~ Fv ~
end of August. s~~~ ~ ' II;
These townhomes are the GDA's fourteenth de w'
velopment in Yh_e Family Townhome Partnership Pro- ~
gram which provides affordable rental .housing for
working families making less than 60°~ of area me-
dian income. -Site work and playground equipment
are currently being installed at the development. The
.CDA will hold an open house at Lafayette Townhomes u~ ~
later this fall ~ ~ f~ ~