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HomeMy WebLinkAbout08-26-03 City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, August 26, 2003, 6:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order. 2. Approve June 24, 2003 meeting minutes 3. Summary of Himle Horner's Presentation on Communication Strategies for Economic Development 4. Discussion of Strategic Plan 2003 Work Program 5. 2003 Community Development Block Grant Project(s) 6. Update on Budget Issues 7. Minnesota Manufacturing and Technology Week 8. Director's Report 9. Adjourn Attachments: • Expansion Management Magazine: Mayor's challenge: Des Moines heads list of best places in the U.S. to locate a company • EDAM: The Developer- August/September 2003 • The Springsted Letter: Tax free zones -who pays, who benefits? • Dakota Co. Technical College Dispatch Newsletter • Sun Current: Businesses are opening ,expanding in downtown ~GGa ~F(~. f .:B> City of Lakeville Economic Development Commission ~ Meeting Minutes June 24, 2003 Marion Conference Room, City Hall Members Present: Brantly, Emond, Gehrke, Matasosky, Miller, Pogatchnik, Schubert, Smith, Tushie, Ex-Officio member Robert Erickson -City Administrator, Ex-Officio member Todd Bornhauser -Executive Director -Lakeville Area Chamber of Commerce. Members Absent: J. Erickson. Others Present: Staff present: David Olson, Community & Economic Development Director; Amanda Alfson, Economic Development Coordinator. 1. Call Meeting to Order. Chair Matasosky 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 May 27, 2003 Meeting Minutes Motion 03.13 Comms. Emond /Miller moved to approve the minutes of the May 27, 2003 meeting. Motion carried unanimously. 3. Update on Himle Horner's PowerPoint Presentation on Communication Strategies for Economic Development Mr. Olson stated that the PowerPoint presentation prepared by Himle Horner with the help of Jeff Lueders has been modified to include more visuals and graphics. Mr. Olson also stated that staff appreciates the input from EDC members on the presentation and we have attempted to incorporate as many of the suggestions as possible. Special thanks was given to Bob Brantly for the considerable time he took to create the additional slide concepts. The presentation by Todd Rapp has been scheduled for Tuesday, July 1 at noon at the Community Room in the Water Treatment Facility. Mr. Olson stated that a copy of the invitation letter and the lisf of persons invited to the event are attached to the packet. Mr. Olson encouraged EDC members that are available and interested in attending to do so. EDC members Schubert, Brantly, Bornhauser, Smith and Matasosky stated that they plan to attend the event. EDC members discussed the presentation slides. 4. Update on Advanced Wireless, Inc. Project Mr. Olson stated that at the May EDC meeting, staff reviewed three issues that were being addressed by Advanced Wireless. Communications to resolve a default in the Contract for Private Redevelopment. Mr. Olson also mentioned that a copy of the memo that was discussed at that meeting is included in the packet. Mr. Olson was pleased to report that all of the issues identified in the May 22, 2003 memo have been resolved. The last issue being the closing on the construction and permanent financing officially occurred on June 19. Mr. Olson acknowledged that Matthew Foli at the Campbell Knutson law firm played an instrumental role in making things happen. Mr. Foli provided considerable effort in ensuring that the City's interests in the project were protected while at the same time working with the other attorney's and lenders involved in the project to make the project a reality. Mr. Olson informed the EDC members that site work has commenced and a groundbreaking ceremony was held 10:00 a.m. on Monday, June 23. A copy of the invitation was included in the packet. Mr. Matasosky shared that Advanced Wireless Communications is planning to occupy the building by the end of November. Mr. Erickson commented that Fairfield Business Campus represents a spectacular outcome! 5. Update on Budget issues City Administrator, Bob Erickson recently attended a League of Minnesota Cities Conference in St. Cloud, MN. Mr. Erickson informed the EDC members on the recently adjourned State Legislative Session and how their actions will impact the City's budget in both 2003 and 2004. A copy of the Messages page that ran in the Life and Times on June 21 was included in the packet. Mr. Erickson indicated that the Messages page may be run again in the future and that the City Council has not received any calls on the proposed cuts to date. Mr. Erickson answered .several questions from the EDC members on this issue. Mr. Erickson also passed out the newest edition of the Lakeville Resident Guidebook. 6. Director's Report Mr. Olson updated the EDC members regarding the Downtown Carwash / Drycleaner property. He indicated that the City Council approved a purchase agreement with Wells Fargo Bank to sell the City-owned former Carwash / Drycleaner property at their June 16, 2003 meeting. Wells Fargo Bank plans to construct additional parking adjacent to their downtown building for use by the bank and other downtown businesses. Mr. Olson stated that the City Council accepted a quote of $17,455 from Hoffbeck Trucking, Inca to complete the demolition of the building. This demolition is funded with CDBG funds and began on June 23. The Car Wash portion of the building has already been taken down and the Drycleaner will also be demolished by July 3. Mr. Olson informed the EDC members that Wells Fargo has 60 days after closing on the property to construct a parking lot with approximately 25 spaces, at their expense. Mr. Olson informed the EDC members that the Comfort Inn was featured at the June 2 Council meeting and that Aztec, Inc. was featured at the June 16 City Council meeting. EDC members Jim Emond Sr. and Dick Miller introduced the companies. Mr. Olson mentioned that copies of the business memos that were provided to the City Council were included in the packet. Mr. Olson then passed out asign-up sheet requesting Spotlight on Business presenters for the remainder of the summer. Mr. Olson stated that the Fairfield Business Campus Property Owners Association Annual Meeting is scheduled for Wednesday, June 25. The meeting, coordinated by City staff, will be held at Hearth Technologies. The Association By-laws require an annual meeting that involves the election of Directors and Officers and also authorizes the budget and the fees for the maintenance of the landscaped boulevards and other common areas of the Business Campus for the coming year. Mr. Olson updated the. EDC members on the new Main Street clock that has. been recently installed along Holyoke Avenue adjacent to Main Street Manor. The Downtown Lakeville. Business Association and the Dakota County CDA partnered in the purchase and will continue to partner for the maintenance and insurance of the clock, while .the City of Lakeville coordinated the installation of electricity and the clock base. Mr. Olson indicated that a dedication ceremony for the new clock is scheduled for Wednesday, June 25 at 4:30 p.m. at Main Street Manor. Mr. Olson stated that a groundbreaking ceremony for Jeff Belzer's Chevy-Dodge-Kia expansion has been scheduled for Wednesday, July 2 at 5:00 p.m. EDC members will receive invitations in the mail for this event. Mr. Olson informed EDC members that Cloverleaf Cold Storage,. based in Sioux City, Iowa, is considering the purchase the old Merillat building property located at 21775 Cedar Avenue. This building has been vacant and for sale for approximately 18 months. Cloverleaf plans to remove the easterly portion of the existing building and replace it with a 124,000 square foot freezer warehouse addition and a possible second phase freezer warehouse expansion of an additional 75,000 square feet. The Planning Commission is currently discussing issues, which include exterior materials, parking and screening provisions in the current ordinance that would apply to this proposed project. Cloverleaf will be incorporating suggestions of the Planning Commission regarding the color of the exterior metal panels of the proposed addition as well as additional landscaping and berms along Cedar Avenue into their proposed plans. The Planning Commission will hold a public hearing on the proposed project on July 17. Mr. Olson reminded the EDC members that the regularly scheduled meeting of the EDC in July has been cancelled. The next regular meeting of the. EDC will be August 26. 7. Adjournment. The meeting was adjourned at 7:15 p.m. Respectfully submitted by: Attested to: Amanda Alfson, R. T. Brantly, Secretary Economic Development Coordinator Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FR: Amanda Alfson, Economic Development Coordinator DATE: August 21, 2003 RE: Summary of Himle Horner's Presentation on Communication Strategies for Economic Development On Tuesday, July 1, Todd Rapp of Himle Horner presented Developing a Coordinated Communications Strategy for Economic Development to twenty-two individuals including City Staff, School district officials, Chamber of Commerce representatives and EDC members (see attached list of attendees). The one-hour presentation, held at the Water Treatment Facility, provided recommendations on how to communicate consistent messages about Economic Development in Lakeville to residents and other members of the general public. At the end of the presentation, Mr. Rapp responded to questions and comments from those in attendance. Following the presentation, requests for feedback were sent to all in attendance. Please find attached the audience questions and comments from the meeting as well as the a-mail responses from the request for feedback. The focus for the future will be on identifying opportunities to integrate the Himle Horner recommendations into our communication plans in coordination with .the School District and the Chamber of Commerce. We will also be available to other groups or organizations that are potential participants in our Key Communicator Network. July 1, 2003 Himle Horner Presentation Questions & Comments uestions: Q: Should jobs be mentioned as a C/I benefit for the under 18-age group? A: Jobs for the 18 & under age group could be identified as an auxiliary benefit, but usually not listed as the overall top C/I goal. Q: How does the economy play into the message? A: Quality of jobs has become more important in the short-term. In the long-term, value may be in conveniences and options. One idea may be to develop ajob-posting site to support Economic Development. Q: School District -vision for integration? A: Incorporate bits of Economic Development information in each newsletter or perhaps create a single edition on how local development and businesses support the schools. Have school officials (i.e. superintendent) be visual in Economic Development happenings. Comments: • People will note when schools excel, use it as a selling tool. Homes in school districts that excel typically see that reflected in their market values. • Schools are part of the "Key Communicator Network," use individuals to carry messages to the community. • Planning Commission on T.V. has decreased public skepticism about the planning process. Alfson, Amanda From: Linda Swanson [ImswansonC~3isd194.k12,mn.us] Sent: Saturday, July 12, 2003 10:19 AM To: Alfson, Amanda Subject: Re: Thank you Amanda, Since I am a visual person, I would have liked to have either reference material before the presentation or information to review at the time. I don't know what the policies for Economic Development currently state. I am encouraged, however, that the city and the school district could finally cooperate on c this - and many other - issues. Linda Swanson On 7/8/03 8:27 AM, "Alfson, Amanda" <aalfson@ci.lakeville.mn.us> wrote: > Thank you for taking the time to attend the Him1e Horner presentation on > Communication Strategies for Economic Development on Wednesday, July 2. > It would be extremely beneficial to get feedback on the presentation regarding > the proposed communication strategy and our plans for implementation. Please > contact me at (952) 985-4425 or email me at aalfson@ci.lakeville.mn.us with > any feedback you would like to provide. All input is greatly appreciated. > Thank you, > Amanda Alfson > Economic Development Coordinator > City of Lakeville > (952) 985-4425 > > [This E-mail scanned for viruses by Declude Virus] Linda Swanson Communications Coordinator Lakeville Area Public Schools 8670 210th Street West Lakeville, MN 55044 952-469-7125 612-880-3489 - Pager 952-469-6054 - FAX [This E-mail scanned for viruses by Declude Virus] 1 Alfson, Amanda From: Martens, David Sent: Tuesday, July 08, 2003 10:29 AM To: Alfson, Amanda Subject: RE: Thank you came away with a new appreciation for Lakeville -the council, city administrator, planning commission, community and economic development departments, etc., because almost everything that the speaker suggested as something positive, was something that Lakeville is already doing. After you've been in the community for a while, and as I travel through other communities that have, obviously, not paid as much attention to these details, you gain an appreciation for the "smart" growth and development that Lakeville constantly grapples with. Anything that helps in providing consistent information is of benefit for the city. It is something that we strive to do in the LPD that is very difficult, especially in a 24/7 operation. Thanks for asking. -----Original Message----- From: Alfson, Amanda Sent: Tuesday, July 08, 2003 8:28 AM To: Michaud, Steve; Nelson, Keith; Martens, David; Tom Smith (E-mail); Palm, Susanna; Guenther, Lea; Visnovec, Brenda; Zarras, Ginny; Todd Bornhauser (E-mail); Vogt, Chris; Schiffman, James; Lueders, Jeff; Jeannie Schubert (E-mail); Volk, Don; Feller, Dennis; 'jeanneC visitlakeville.org ; 'bbrantlyC~usfamily.com ; 'gmamoroso@ISD194.K12.MN.US ; 'ImswansonC~?ISD194.K12.MN.US' Cc: Erickson, Robert; Olson, David L; Jack Matasosky. (E-mail) Subject: Thank you Thank you for taking the time to attend the Himle Horner presentation on Communication Strategies for Economic Development on Wednesday, July 2. It would be extremely beneficial to get feedback on the presentation regarding the proposed communication strategy and our plans for implementation. Please contact me at (952) 985- 4425 or email me at aalfson@ci.lakeville.mn.us with any feedback you would like to provide. All input is greatly appreciated. Thank you, Amanda Alfson Economic Development Coordinator City of Lakeville (952) 985-4425 i Alfson, Amanda From: Gary M. Amoroso [gmamoroso@isd194.k12.mn.us) Sent: Tuesday, July 08, 2003 8:55 AM To: Alfson, Amanda Hi Amanda: Thanks for the invitatoion to attend the session. I enjoyed it. I sincerely hope that the City and Schoool District will continue to work closely together. It benefits both of us. Have a great day! Gary M. Amoroso Gary M. Amoroso Superintendent of Schools Lakeville Area Public Schools 8670 210th St. W. Lakeville, MN 55044 952-469-7117 [This E-mail scanned for viruses by Declude Virus) 1 Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, .City Administrator Amanda Alfson, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: August 21, 2003 RE: Review of 2003 Strategic Plan Work Program The following is a review of the 2003 Work Program for the 2002-2004 Strategic. Plan for Economic Development and the status of each of this year's work program goals. The first work program goal is: "To inform the residents of the benefits of commercialrndustrial development." • This work program goal includes the continuation of the Spotlight on Business Program. This program continues to be well received by the City Council, the local business community and hopefully Lakeville residents. With on-going development of new businesses in the community, it is anticipated that there will be new businesses to feature in the future. Some aspects of this initiative to possibly discuss include: guidelines for the type or size of businesses to be featured in the future and whether we continue to Spotlight a business at every City Council meeting. • A summary of the development and presentation of a communications strategy that was developed with the assistance of Himle Horner was summarized in a separate memo included in this agenda packet. One of the activities included in the 2003 Work Program approved for this year included preparing a Progress Report on Economic Development to be mailed. to all residents and businesses. The estimated cost of $8,000 to print and mail this Progress Report was eliminated from the 2003 Economic Development Budget to help offset the reduction of State Aid to be received in 2003. It was also concluded that the distribution of this report would be more appropriate in 2005 upon the completion of the 2002-2004 Strategic Plan. An alternative to this mailed Progress Report may be a less extensive report to be featured in a future Messages Page at the end of this year or the beginning of 2004. Staff will also continue to prepare "Around Town" articles for the Lakeville Area Chamber of Commerce newsletter. • Staff is continuing to investigate new uses of the City's web site to disseminate information on economic development in Lakeville. These include making the Airlake Park Newsletter available on-line, possibly putting the Spotlight on Business information on the Web site each month as well as other timely information on economic development activities in Lakeville. The second goal is to: "Encourage communication between the school district, county, and city in order to provide greater understanding of the financial needs and the benefits commercial and industrial development bring, in order to facilitate financial planning for the community." • Progress on this goal has already been made by the participation of the Superintendent and Communications Director for ISD 194 in the Communications Strategy presentation made by Himle Horner on July 1st. Staff will continue to pursue communications with ISD 194 staff on economic development issues including ensuring that information prepared on economic development issues is provided to the District. • Another aspect of this goal was to evaluate impacts of the legislative decisions in relation to impacts on local units of government and in particular how these decisions may affect efforts to promote economic development. The City and School District, as well as Dakota County, are currently in the process of preparing their respective budgets for 2004 and evaluating current programs and service levels. The impacts of. the most recent Legislative Session will become more apparent later this Fall as more information becomes available on these 2004 Budgets. The third work program goal is: "To encourage the investigation of critical business infrastructure." • Included in this effort is participation in the planning and subsequent economic development associated with. interchange upgrades. The economic impacts associated with the planned improvements to the County Road 50 Interchange are already being realized. Interest in new commercial development, as well as renovation of existing commercial buildings, is extremely high and planning has already begun for a number of these projects. Staff is involved with the acquisition of five commercial properties and relocation of two existing businesses in the project area as well as coordination and review of the United Properties development. • Final design work is being completed on Phase II of the County Road 60 Interchange improvements that will be constructed in 2004-2005. Interest in the commercial areas along this County Road remains high with three new buildings under construction in TimberCrest and the recent purchase of the commercial area located at the SW corner of County Road 60 and Kenwood Trail by Merchants Bank based out of Winona. The required traffic study/analysis of the proposed folded-diamond design of the County Road 70 Interchange improvements is currently being prepared by SRF and should be completed this Fall. City staff is working with County staff on an application for federal TEA 21 funds for these Interchange Improvements. • Staff has recently had favorable dialogue with Dakota County staff and elected officials on the 10 Ton Road Issue. This is an important issue for County Road 70 and many of the businesses in the Industrial Park. Staff will continue to encourage the County to pursue this much- needed type of roadway improvement. • Staff will also be involved in several planning efforts currently being pursued by County Transportation and Planning Departments. These include the Cedar Avenue Transitway Study and the update of the County Transportation Plan. Both of these planning efforts for future transportation infrastructure in Dakota County, and Lakeville in particular, will have significant impacts on future economic development in the community. Staff will continue to provide the EDC with updates on the progress of these County planning efforts as well as providing opportunities for input such as the recent County Transportation Plan Update surrey that was provided to EDC members. • Finally, the Mayor and staff are currently involved in discussions with MAC, Aircraft Resource Center Inc. (the current FBO at Airlake Airport) and Eureka Township officials on issues. associated with a planned expansion of the commercial FBO facilities. This proposed expansion of the FBO building will necessitate the annexation of the portion of the current FBO leased area currently located in Eureka Township. The fourth work program for 2003 is to: "Encourage a balance between commercial~ndustrial and residential tax base." • Business retention including on-site business visits are planned to begin in September and continue through the rest of the year. • Planning for Manufacturing and Technology week activities has begun and information is included in a separate memo included in your packet. The plan is to hold the event in the Industrial Park again this year as this change was well received last year. • Staff is also assisting in the planning of a social event to be held on September 4th for all of the businesses and their employees located in Fairfield Business Campus. Staff would appreciate input and additional comments from EDC members on any of the 2003 Work Program Goals to be pursued during the remaining four months of this year. A ends Item 9 MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: August 21, 2003 RE: 2003 Community Development Block Grant Project The City has recently received authorization from the Dakota County CDA to proceed with expending of 2003 Community Development Block Grant (CDBG) funds consistent with the approved application that was submitted in January. The two activities that were identified in this year's application were the Downtown Code Improvement Program ($70,000) and Demolition and Clearance of Blighted Buildings ($27,000). A potential demolition and clearance project that was identified in the application was the vacant house located behind Lakeville Tire and Auto located on the corner of Holyoke and 209th Street. Bud Allstot, Owner of Lakeville Tire and Auto has submitted the necessary planning applications for the construction of a 17 car parking lot west of his existing building. These applications will be considered by the Planning Commission at their August 21 meeting. A picture of the house to be demolished and a site plan for proposed new parking lot is attached. In addition to the construction of new parking lot (including curbing. and landscaping), screening of the dumpster, mechanical equipment and tire cages will be provided. Bud is also in the process of constructing a new roof on his existing building and wil{ be installing new windows and EIFS on the Holyoke Avenue side of the. building. The CDA will be coordinating the demolition activities including any necessary asbestos abatement i~ y .r 4~ ` * r ~ R~ ~ ~?i i, ~ 3 ~ z- ' ~ ~ . M F .ji4 4 i Yfr ~f ~ ~ Pd ` ~ ~ ~ r , ~ ~ n t t ~ i. ~ 1 !l r ~ ~ ~ * ~ r E~« 1?-.. ~ y ~ .,1p, ~ ~ ~I ~ f Y. x ~ M ~ ~ - « ~ 4 I ~ pf uuy ~ ~ u t i, ~ yy 4 ~ t ~ ~ ~ , x - . . , . u y.wnu.a air ~ ouiv ~ ~ enu?~nn ~ aor ~aoa+~ ~ wauKxrn wroro~r i ~ ~ t~~~ ~ ~ ~ f ~ ~~~~Ol glg~~4 ~ o ~ ~ E: ~ ~ ~ i r Arrr • w O~ I r r • r r r r t ~~R~ ~ 1 1 ~ ~ Fir Y r { r 7Ar ~ 1~r y A • a r 1 t 1 e ~ ~ i ~ ~ ~ E ~ , ~ ~ ~ ~ _ i ~ ~ _ E ~-P l~- r ~ 'y~y y l sw~iww ~ ~ ; ~ Ex~i~~T Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: August 21, 2003 RE: Update on 2004 Budget Issues City Administrator Robert Erickson will provide an update on the status of the preparation of the 2004 City Budget Tuesday's meeting. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FR: Amanda Alfson, Economic Development Coordinator DATE: August 21, 2003 RE: Manufacturing and Technology Week Staff has begun planning for the tenth annual Manufacturer's and Technology Week in Lakeville that will be held October 20-24, 2003. The Mayor will officially designate that week as Manufacturing and Technology week as part of a state-wide initiative to recognize the contributions of industrial businesses. During Manufacturing and .Technology Week 2002, Ryt-Way Industries, Inc. expressed interest in hosting the Manufacturers' Appreciation Luncheon this year. The date and location of the luncheon is still yet to be determined. Dr. Ron Thomas, President of Dakota County Technical College, was the keynote speaker in 2002. Recommendations or suggestions for the 2003 keynote speaker are appreciated. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Amanda Alfson, Economic Development Coordinator FR: David L. Olson, Community & Economic. Development Director DATE: August 21, 2003 RE: August Director's Report The following is the Director's Report for August 2003. Spotlight on Business Parker Hannifin was featured at the August 4th City Council meeting and was introduced by EDC member Tom Smith. Walgreens was featured at the August 18th meeting and was introduced by EDC member Steve Gehrke. Copies of the memos that were provided to the City Council on these businesses are attached. Downtown Carwash / Drycleaner Property Update Demolition of the Downtown Car Wash / Drycleaner was completed on July 3rd. Concrete and soils contaminated with perchloroethylene (PCE) were encountered during the demolition process. This resulted in two truck-loads of demolition debris being sent to a hazardous waste disposal facility in Michigan. The lab analysis of the soils that remain on the site determined that the contamination levels of these remaining soils to be within acceptable level. The Minnesota Pollution Control Agency has determined that no further remediation on the site will be necessary. Dakota County Environmental Management staff has suggested that additional ground water testing be completed on the site and offered to complete this additional testing. The City has indicated that it will complete any additional groundwater testing that is deemed necessary and has indicated to the County that it will proceed with the conveyance of the site to Wells Fargo to allow for the construction of an off- street parking lot. Met Council Update Dialogue between the City of Lakeville and representatives of the Metropolitan Council continues and regarding future sewer service issues in the City. The attached letter from William Moore summarizes the most recent position of the Metropolitan Council regarding the concerns expressed by Lakeville regarding the proposed Elko /New Market Interceptor and the feasibility of providing sewer service to the Urban Reserve in Lakeville along the Cedar Avenue corridor. Crossroads Development The commercial portion. of the Crossroads Development was recently sold by OPUS to H.J. Development. It was anticipated that OPUS would sell its interest in this type of commercial development however it is more typical for this to occur after the buildings have been constructed and in many cases partially or fully leased.. H.J. Development was interested enough in this commercial development in Lakeville that it was willing to complete the transaction at this time. OPUS will complete the construction of the Cub Foods store and adjacent retail space that totals 116,000 square feet. H.J. Development has indicated that they plan to own and manage the commercial portion of Crossroads for the long term. Advanced Wireless Communications Project Update Progress continues on the construction of the new building in Fairfield Business Campus for Advanced Wireless Communications. Much of the site and utility work has been completed and pre-cast panels will begin to be put in place soon. Construction is expected to be completed December 31St JTW and Hebert and Associate Projects in Airlake Development 4th Addition Building permits were recently issued and construction has commenced on two new projects in Airlake Development 4t" Addition along Heron Way. JTW will be constructing a new 6000 square foot manufacturing facility. Hebert and Associates will be constructing a 27,000 square foot office warehouse facility. This new office warehouse facility will provide needed space for lease by small and start-up businesses. Cloverleaf Cold Storage Project The City Council approved a conditional use permit for Cloverleaf Cold Storage's proposed conversion of the Merillat Building on Cedar Avenue to a freezer warehouse facility at their August 4t" meeting. Once the closing on the sale of the property has occurred, it is anticipated that demolition of the portion of the former Merillat building that will be replaced by a freezer warehouse addition will commence. New City Maps The Chamber of Commerce and the City collaborated on the printing of new City maps. A copy this new map is enclosed. a Metropolitan Council Building communities that work Environmental ~'uices August 5,-2003 Mr. Robert Erickson City Administrator City of Lakeville 201.95 Holyoke Avenue Lakeville, Minnesota 55044-8339 Dear Mr. Erickson: This letter is intended to confirm recent discussions between MCES and City of Lakeville staff concerning sewer service related issues. Spec~cally, we have looked at sewer service options that could potentially benefit the City of LakevNle and the Metropolitan Council: The City has expressed a need to provide service along the Cedar Avenue corridor: This concept-had been previously rejected by the Metropolitan Council because there was no metropolitan benefit associated with the`sewer. Since that time, growth projection in the metropolitan area,; and accordingly the Empire WVVi'P service area, has increased significantly. As a result, there is another interceptor.concept that potentially could provide a benefit to the metropolitan system as well`as meet Lakeville's service needs along. Cedar Avenue. As the Council projects out sewer needs beyond 2020, there are certain restrictions that wilt develop in the conveyance system. The Empire WWTP service area is-one of the areas where additional conveyance .capacity would be beneficial A preliminary concept of a relief interceptor extending from the Empire plant to approximately 195' Street would"allow the Council to divert flow from the Apple Valley Intercep#or-7409 direiEly o the, plant. Extending that line further west to the Lakeville border-could provide additional relief to the. Lakeville/Farmington Interceptor and. could provide trunk sewer benefit to Lakeville along the Cedar Avenue corridor. If this concept proved viable, Council policy would require the City to cost share with the Council to pay for this portion of the reCref interceptor. It is our intent to initiate a preliminary analysis of the relief interceptor project. If the project appears feasible, the funds for. a more detailed study would be proposed for inclusion in the MCES 2004-2013 Capital Improvement Program. We also discussed the possibility of cost sharing on the potential Elko/New Market interceptor by upsizing any trunk sewer segment that the City of Lakeville may build that could be utilized as a future interceptorto Elko/New Market. We concluded that additional information would be needed before we could proceed further with that concept. I believe the initial work we have conducted has the potential to be a win/win for the Council and the City as well as for all other stakeholders. I look forward #o future meetings. incerely, William G. Moore General Manager Environmental Services Division cc: Tom Weaver, MC Regional Administrator, Caren Dewar, MC Deputy Regional Administrator; Rick Aguilar, MC Member District 16; Jules Smith, MC Member District 4 www.metrocounclLorg Metro Info Line 602-1888 230 East Fifth Street St. Paul, Minnesota 55101-1628 (6S1) 802-1005 Fax 602-1138 TTY 291-0904 M Equal Opportunity Employer Y ~ - ~ I.~ r~ L MEM`../F~.ANDtlM' ~ Y-.~ ..f ~,I~. y, ;zj 7' ~ F~i•i~",. `1' TO: Mayor and City Council City Administrator CC: David Olson, Community & .Economic Development Director FROM: Amanda Alfson, Economic Development Coordinator DATE: August 1, 2003 RE: Spotlight on Business: Parker Hannifin Corporation The purpose of the Spotlight On Business program is "to inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth" (Goal #i of the Economic Development 2003 Strategic Work Plan.) Parker Hannifin Corporation. has been selected as the next business to be featured in the Spotlight. on Business program. Economic Development Commission member Tom Smith will be in attendance at the Council meeting to present information on Parker Hannifin Corporation and introduce Service Center Manager Fran Caulfield. Parker Hannifin Corporation began in 1918 in Cleveland Ohio. Eighty-five years later, Parker Hannifin is a six billion dollar motion and control technologies company. Parker Hannifin Corporation has eight .specialized groups within their .company including Aerospace, Automation, Climate and Industrial controls, Filtration, Fluid Connectors, Hydraulics, Instrumentation and Seais. Within each group, there are a myriad of divisions. Located at .21337 Hemlock Avenue since. 1983, the Lakeville .site currently serves as the warehousing and assembly center for the six divisions within the Fluid Connectors group. Parker Hannifin Corporation's Lakeville location is comprised of a 46,000 sq. ft. building that houses over 14,000 different fluid connectors products ranging from the Parker Ultra- Tough hoses, boom cords and brass connectors. Manufacturers are the most common users for Parker Hannifin Corporation products. .Some of Parker Hannifin Corporation's regular clients include: Toro, Tennant Company, Quest Engineering, Nott Company, Barko, Two Harbors -and John Deere. "Kitting" or packaging more than one item for original equipment manufacturers- is one of many ways that Parker Hannifin Corporation works to satisfy the needs of their large clients. Parker Hannifin currently employs 33 full and part time employees. In addition to employment, Parker Hannifin Corporation provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of $1.4 million to the Parker Hannifin building and property. This estimate has resulted in a company contribution of $42,104 in local property taxes going to support the City, Dakota County and Independent School District 194 in 2003. ~ 1 - r -1r.~ tr-, Lt ~ ~`.~l~~l-'t1'~[~VGV~ ?G~~~ ti ~'2~~,k~:`~~`i+ ` TO: .Mayor and City Council City Administrator CC: David Olson, Community & Economic Development Director FROM: Amanda Alfson, Economic Development Coordinator DATE: August 12, 2003 RE: Spotlight. on Business: Walgreens The purpose of the Spotlight On Business program is "to inform and educate residents on benefits of C/I base to gain community support and apprecia#ion for business growth" (Goal #1 of the Economic Development 2003 Strategic Work Plan.) Walgreens has been selected as the next business- to be featured in the Spotlight on Business program. Economic Development Commission member Steve Gehrke will be in attendance at the Council meeting to present information on Walgreens and introduce store manager Scott Connley. Opened in January 2002, Walgreens is a neighborhood drugstore that carries consumables and necessities. Located on the corner of County Road 46 and Cedar Avenue, the freestanding location offers easy access and front door parking. Walgreens offers amenities including a full pharmacy with drive-through services, a photo department with one-hourphoto, digital services and a Kodak Photo Maker-for reprints, enlargements and cropping, as well as a complete cosmetics department. In the last few years, convenience grocery. sections have .also been added to Walgreens stores. Lakeville Walgreens offers items including milk, bread, eggs, ice cream etc. At this location, .Walgreens draws residents from Lakeville as well as Apple Valley, Rosemount, Burnsville and Hastings. As a service to customers, all Walgreens stores are linked nationwide for prescription orders and history. On-line pharmacy services are also available to customers to check personal prescription profiles or to make changes. As a pharmacist who went into management, Mr. Connley has been with the Walgreens Company for 16 years. Prior to joining the Lakeville Walgreens staff, Connley was the manager at the Apple Valley Walgreens for 11 years. Walgreens currently employs 32 full and part time area residents. In addition to employment, Walgreens also provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of $1,245,700 to the Walgreens building. and property. This market value will result in the contribution of $41.,932.40 in local property taxes going to support the City, Dakota County, and Independent School District 194 in 2003. News Archive Page 1 of 3 - _ _ - - - = f1. f'errtc~i F~ub,•c.;'san i - - ` - ~ _ ' _ - a., ill 3.._ .~..a - . ~ - a~ ? - i ~ ~ t ~ t-~_ ~ - - T~~ 3 _ , c'" - F+(?ME p(.t f.N1Y,~ $t~fli~l ' _ a a~ ~3~ ~ 1 t ~ - Mayor's Challenge: Des Moines Heads List of Best Places in the U.S to Locate a Company z = ~ ~ [ 7/3/2003 ] By: Bill King, Chief Editor, and Michael Keating, Research Editor _ ' ~ ' ~ [ 0 Talkbacks /Add Talkback ] Related Link,,,. t~ - -tea Click on the RELATED LINK to view the complete list of the top 329 metropolitan statistical areas (MBAs). Site j ~ selection is all about comparisons. Clearly, companies can do business just about anywhere. The trick is to find the ~;F.~ _ ~ ry } ~ _ best place to locate your company. ~ Where can I find the best educated, or the most reliable, work force? Where can I find the most inexpensive workers? How about high-tech, entrepreneurial scientists and engineers? ti ~ ~ ~ Where can my workers experience the highest quality of life at the lowest cost to my business? Where can I provide { ~ my work force high quality health care at the lowest possible cost to my bottom line? Which communities offer the _ ~ best public schools that will train my work force 10 years from now? ~ ~ r ~ ~ Where can I find the most business-friendly tax and regulatory climate? How about the best ogistics infrastructure 4~ - ~ for my company? Where can I find the best combination of air, rail, water and highway access to ship my products, ~ ~ ~ ~ or to bring in the raw materials my business needs? - . ~ ~ T ~ ~ 3~ fact ry. Whetlhertthatgfac lity willtbeta dsstribution oenteacor manufacturing facil tynctallce9te hor back off ce ope ation, ~ ~ or even a corporate or regional headquarters, all of these factors will be important to one degree or another. s~=- ~ a = That's why, every year, Expansion Management's renowned research department compares communities according ~ ~ =n~~~ - to a variety of characteristics important to corporate site selectors. ~ Summary of the Major Studies During the course of the year, we examine 329 metropolitan statistical areas (MBAs) from a variety of perspectives. The two most recent MBAs -Auburn-Opelika, Ala., and Corvallis, Ore. -were not included in any of the quotients. Missoula, Mont., was not included in the Logistics QuotientTM. Like most of our readers, our studies also have a tendency to emphasize labor and operating costs. To that end, here are the six major studies we've conducted during the past 12 months: Education QuotientTM -The EO evaluated 1,500 school districts (about 20 percent of all high school degree- granting districts) nationwide as a way to provide our readers with a basis for comparing the type of work force they are likely to encounter in various communities throughout the United States. The EO focuses on results, not on spending, with the main emphasis placed on how much students learned (college board test results} and whether they finished what they started (graduation rates). Health QuotientTM -The HO looks at healthcare as being a major cost for employers throughout the nation. It is also something that varies from community to community in terms of cost and availability. This year's HQ compared the MBAs according to a variety of categories that measured both the availability of quality healthcare services and the cost to employers of those services. In this ranking, cost is just as important as quality, and vice versa. Quality of Life QuotientTM -The Quality of Life QuotientTM looks at quality of life as being access to the American hrr„~//www-exnansi»nmana~ement.com/smo/newsviewer/default.asp?cmd=articledetail&articleid=15857 8/14/2003 News Archive Page 2 of 3 Dream at a price affordable to most people. While nice, access to the theater, opera and cutting-edge poetry readings are not what most Americans consider important to the daily lives. What is important is the ability to afford to own a decent (read: average) home, or to afford to rent a decent three- orfour-bedroom apartment, to live in a community that is relatively free of violent crime and property crime, to be able to send their children to good public schools, to be able to afford to save money to send their kids to college, to be able to keep the lion's share of their income (rather than giving it to the government in the form of taxes), and the ability to improve one's skills through a quality community college or university. That is what most American workers want. The Quality of Life QuotientTM compares the MSAs based upon their ability to provide that access to the American Dream at the lowest cost to the employer. Logistics QuotientTM -The LQ is an attempt to compare the logistics infrastructure and work force among the MSAs. This study compares the logistics work force and logistics companies within each of the MSAs, as well as the transportation infrastructure (road, air, rail and water) servicing that metro. The study also looks at taxes and fees imposed on logistics activities in those cities. Since most logistics decisions are driven by the need to locate in a particular geographic region, corporate site selectors can use the results of this study to evaluate how cities did on a national, as well as a regional, basis. High-Value Labor Market QuotientTM -The HVLM attempts to identify where companies in the know-based industries are most likely to find the workers they need, both in terms of quality and quantity. It compares the MSAs according to such criteria as the percentage of scientists and engineers in the overall work force, the number of patents issued per capita, the number of colleges and universities (and community colleges) in the metro area, and the research and development spending per capita. The idea is to identify where companies are most likely to find that critical mass of highly educated, technical worker so essential to the New Economy. Legislative QuotientTM -The Legislative QuotientTM attempts to compare the business climate created by the 50 state legislatures in terms of the areas over which they actually have control: taxes and government spending. While all politicians love to take credit for a good economy. (but are nowhere to be found when it comes to accepting responsibility for a bad economy), it is in the type (e.g., corporate income tax, sales taxes, franchise taxes, excise taxes, inventory taxes, etc.) and degree (e.g., the tax rate) of taxes levied on local businesses that they have their greatest impact on the local economy. Right behind #hat in terms of importance to business is how these legislatures choose to spend the money they raise, specifically in the areas of education and infrastructure. The Overall Winners When it comes to smart, reliable workers and low business operating costs, the Midwest is clearly an excellent place to look. This year's Top 10 finishers in the Mayor's CupTM, headed by Des Moines, Kansas City, Omaha and Minneapolis, are all Midwestern cities. In fact, only three of this year's Top 10 -Seattle (No. 5), Lexington, Ky., (No. 7) and ' Columbia, S.C. (No. 9) -are not located in America's Farm Belt. Although the Midwest as a region still dominates, the results are a lot more spread out when it comes to the metros that finished in the Top 10 percent. In all, 18 states (21 when you consider multi-state MSAs) and the District of Columbia are represented among the top 33 finishers (there are 331 MSAs overall in the study). Topping the list of top 10 finishers is Iowa, with five, followed by Minnesota and Texas, each with three. Alabama, Kansas, Kentucky, Nebraska, North Dakota and Pennsylvania each had two. Interpreting the Results Each of the six research studies was given equal weight, with the winners doing the best, on average, in ail six. However, it's possible that not all six are important. In fact, there are lots of companies, particularly those in the knowledge economy, for which salary costs and quality of life at a reasonable price at not issues. For them, it may be access to the high value labor market that is most important. For others, particularly those looking to establish distribution facilities, perhaps it's our Logistics Quotient TM and Education Quotient TM that have the greatest importance. For most of our readers, particular those with labor-intensive operations, the Expansion Management approach to evaluating costs is critical to their maintenance of a healthy bottom line. It is for them that we offer the results of our first annual Mayor's ChallengeTM Bill King is chief editor of Expansion Management magazine. He can be reached at BiIlKing~penton.com. Michael httr,•!/www exnancinnmanauement_c~m/sm~/newsviewer/default.asn?cmd=articledetail&articleid=15857 8/14/2003 News Archive Page 3 of 3 Keating is research editor for Expansion Management magazine. He can be reached at mkeatingGpenton.com. No talkbacks have been posted for this article. Home ~ Abaut Us ~ Magazine ~ Expansion and_Relocaton G~irectory. Products ~ Calendar of Events ~ N_ews ~ Related Links ~ Privacy Policy ©2003, Penton Media, Inc. Any duplication of this document by electronic or other means is strictly prohibited. If you have any comments or questions regarding the information or the Web Site itself, please contact webmaster{~?exp. ansionm. ~nagem.e.nt.com httn•/hxnucx~ asrnancinnmanaar mPnt rnm/emn/ne~z~evia~x~ar/rlPfanlt acn~rmrl-articlarlPtailRrarticleirl-l riR57 R/14/2n(1~ The Developer -,~ugust/September 2003 Page 1 of 19 ~ , ~ ~ , ~ EDA/1~I ~ , . ~ , , 'EDAM Summer Conference in Pictures August/September 2003 Cover Storv ~ EDAM Summer Conference Panel: ~ Emerging Roles in Economic Development 2003 EDAM Economic Former EDAM President Development Award David Anderson unveils the Winners EDAM Foundation. EDAM Foundation: Building Stronger Communities Through Education, Scholarshps and Research EDAM Member News Welcome New Members DEED News • Special Minnesota Section in BusinessWeek • Publication Explores__L_egal and Business Issues of _ , Raising Capital DEED Commissioner Matt • Manufactured Exports Kramer addresses conference / ' Make Strong Comeback in attendees. First Quarter of 2003 • Revised Fourth Editio__n_of "A Le4al Guide to th_e Internet" Now Available rt Labor Market News • Survey Finds Minnesota - ~ Job Vacancies Down_More Than 20 Percent From a L Year Aoo _ , • Minnesota Business Developments Development News x~ , http://www.ewald.com/edamenl/julyaug2003/edamaugsept2OO3.htm 08/04/2003 The Developer -August/September 2003 Page 2 of 19 • State Receives $4.4 Million EPA Grants for Brownfield Revitalization Vice President Paul Steinman Projects presented LaDonna Boyd of Dakota Electric Association with • New Metropolitan Areas and State Maps Now the Economic Development Posted Practitioner of the Year award. • White Bear Lake Firm Wins Govc~inor's Trade Award • NA70I''s Impact on Minnesota's Economy 'Huge', New Study Revcrals ~ ~.e. ii ~ 1:~, Get Maximum Visibility with the Leading ~ ~ Economic Development ; ; ~ Decision Makers via Electronic Advertising - with EDAM! ~ r" • Take advantage of exclusive visibility on the EDAM Web site AND all - official blast emails. Former Saint Paul Mayor George • Limited to five advertisers Latimer gives the keynote only. address. • NEW! Your banner ad and text message will be included on a rotating basis on all official EDAM email messages. Messages x T ~ are sent approximately 5 ~ ~ ~ times/month to a ~ r- + ~ maximum audience of 700 individuals. , • Your logo, with a direct link to your Web site, will Michael Szeliga of Law be featured on a rotating Bulletin Publishing/MN basis on EDAM's home n heal Esta[e Journal page. The EDAM Web site - awards Henry Fischer of averages 117 visitors _ I :ast Central Energy with daily! - awards for best marketing • Your site will be featured ~y .n campaign, and best in EDAM's monthly "In the marketing event. Spotlight" section. ~ • Your organization will be eligible fora 10% discount on EDAM newsletter advertising • It's just $325 for 12 months. For more information or to sign up, go to our home page, www.edam__.o_rg, and click on http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 3 of 19 "advertise with us, download a contract" or contact Martha ten Sythoff with any questions at 651.290.6286, marthats~ewald.com._ ~s~,~~ ~ ~ s~ik!"# ~ w' , r r?~ ~ l~ J~ ~ ~ Three members of the winning golf team (right to left): Linda-=~_-~''~' M Lund, Paul Steinman, and David Anderson. Not Pictured: Karen ~ - Larson. EDAM thanks its Medallist Members for their support... _ ~ ~ M~~ ~ ~ ~ ¦ ~ ~I Vice President Paul Steinman ~ ~ models new EDAM shirt. Call EDAM and order yours today! ranze . ~ n ~ # Thanks! y f r:.:} -`.;;i EDAM's 2003 t Board of Directors Ralph Prescher, retired ~r~ . i ~:'{F Faribault County ` `r William Lucking Commissioner, with his wife. President Prescher received EDAM's ' Progress Plus, Inver Grove Citizen of the Year award. Heights 651-451-2266 n i l I,~~rpi_~igl~csti l us. urg Paul Steinman First Vice President Springsted, Inc., St. Paul 651-223-3000 pslcinnrurn~s~~ringst~cl _a~m Sandy Layman EDAM Summer Conference Panel: http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 4 of 19 Second Vice President Emerging Roles in Economic IRRR Agency, Grand Rapids Development 218-744-7400 Janna Kin CEcD, sand,y~u~~irrr.b_urg g' Economic Development Services, Minneapolis Linda Lund Past President ~~w. ~ ~ ~ ~ CRESA Partners ' ~ . 612-373 9181 `f Ilund u~cr~s ip irtn.crs_.com „ ~t Cathy Capone Bennett City of Roseville, Roseville ~ ' 651-490-2241 ~ ~ L~ rithy.bcnnctt~rici.ruscville.mn.us t ~ fi~ LaDonna Boyd +'uM Dakota Electric Association, ~ `t°'~: Farmington panrl, "hinergurg Koles ur licorxu~~rc' Uerelupurenr, ° dncnsse<! dre roles ojchourhers 651-463-6232 gfcommerce rn the business oJeconomic derelapmenr. Ibovd(ri~~dakot<rclccu~ic.unn At the EDAM conference in June, a panel of economic development and chamber Jim Gromberg professionals discussed "Grow Minnesota,"anew initiative by the Minnesota Connexus Energy, Ramsey Chamber to develop Minnesota's economy. David Olson, president of the Minnesota 763-323-2785 Chamber led off with a presentation describing the Chamber's new economic jim<~rom'uc~mnc~uscna~t~~.cum development initiative. Rebecca Kurtz The purpose of the initiative is to promote statewide collaboration on growing Ehlers and Associates, Inc., Minnesota's economy. The initial emphasis will be on a private sector, statewide Roseville business retention and expansion initiative. The Chamber has developed a business 651-697-8516 retention survey and will work with the statewide network of local chambers to call rkurV a chlcrs-inc,c~im on businesses that "expand the economic pie" by exporting a product or service. Local chambers must elect to participate and must: Mark Lofthus • Commit to calling on at least 5% of membership annually, MN Dept. of Employment & • Participate in a business retention training program, Economic Development, St. Paul • Be an active business advocate for businesses on member issues, 651-297-4567 • Commit to advancing Minnesota's economy, and mark.loCthusu`st.uc_mn.os • Participate in alead-sharing pool. Down the road, the Chamber may expand its scope to attract new companies or "trigger new industries." Nancy Norr Minnesota Power, Duluth Olson noted that significant change is underway in the economy, creating both 218-723-3913 greater risk and greater opportunity. The current economic drivers -increased ~~nc~rr~rmnlw~cur.c~m~ worldwide competition (e.g. China), innovation (e.g. corn resin, customer service), and information (e.g. Internet) mean that businesses have much more flexibility to Nick Skarich locate anywhere and we need to do things differently in Minnesota to keep and Northland Securities, Minneapolis attract businesses. 612-851-5907 nskarich~~~northlandsecuritics.corn In response to the question, "Why now?", Olson noted that Minnesota now has a better story to tell -property tax rates, workers compensation, and a variety of other Be Heard ! state policies have improved the environment for business growth and attraction. In addition, other states are being more proactive; state government resources are declining; some local efforts are fragmented; and intrastate competition hurts the Submit your items of interest state. for The Developer to ~damed,iturnc~y_ald.com. Olson advocated that the statewide private sector initiative is needed because someone must focus on Minnesota's economic future, not just the economic future Questions, call our staff editor at of particular regions or communities. He said that most public sector economic 651-290-6273. development efforts focus on specific deals, and there is a lack of consistency or coordination of retention activities throughout the state. He believes that business people are more likely to share information with peers than with the public sector. Because the initiative is statewide, all options can be presented to current businesses http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 5 of 19 Submit your news for publication in and prospects, creating more opportunities for expansion in Minnesota's regional The Developer. Next Deadline is: centers, small towns, and the metro area. S~tember 10, 2003. Local chambers planning to participate are submitting their applications to the Minnesota Chamber in early July. Local chamber partners will be selected in early August. Training will be held in mid-August with retention calls underway in early September 2003, with a first year evaluation in September 2004. Private business people will call on other businesses using a survey instrument developed by the Chamber. The purpose of the visit will be to say "thank you," help with problems, strengthen relationships between companies and their business advocates, and collect data to better understand the needs of MN businesses. The Minnesota Chamber will compile the data collected locally to provide insight into MN business trends and issues. Mark Loftus, director of Marketing and Business Development for the MN Department of Employment and Economic Development, indicated that the department will cooperate with the Chamber's program, but will continue the state's program of calling on major Minnesota businesses. Tess Dandrea, the Business Retention and Resource Director for the Duluth Area Chamber, described their business retention call program and roles and responsibilities for the various economic development functions. Gary Smith, CEcD, is the Executive Vice President of Rochester Area Economic Development, Inc. (RAEDI), a public/private partnership established in the Rochester area in the mid-1980's. RAEDI currently administers its own business survey as part of their retention program. Smith and the Rochester Chamber already work together on business retention and may work something out so survey data can be gathered locally and forwarded to the state. Lory Fedo, President/CEO of the Hibbing Area Chamber of Commerce, described the active role of their Chamber in business retention and economic development and relationships with other economic development partners in the community. Larry Dowell, President of the St. Paul Area Chamber of Commerce described the new economic development and workforce development initiatives of the St. Paul Chamber as well as a clear agreement regarding roles and responsibilities between the St. Paul Port Authority, the City's Department of Planning and Economic Development, Capitol City Partnership, the Chamber of Commerce and other downtown/riverfront organizations. Gary Smith noted that the Chamber in Rochester functions as the strong voice of What's going o n business in the community, while RAEDI brings the public and private sectors with Chambers? together around the table. He expressed Chambers throughout the country concern that the advocacy role may be saw their role in the community more challenging for Chambers as they decline in the 60's and 70's as become more closely involved with local retailing declined on Mainstreet and government on economic development. moved into malls. National retail Their pure voice of business advocacy chains with rotating managers don't may be lost. David Peterson of Renville contribute time or money like felt that roles had been clear in the past - Mainstreet business owners. In Chambers focused on small business recent decades Minnesota issues and the issues of the retail and Chambers, unlike Chambers in some local service sector while economic other parts of the country passed up development organizations focused on taking a substantial role in economic industries bringing new revenue to the development; and with the advent of local economy, typically manufacturers. room tax, convention and visitors He wondered, if Chambers switch their bureaus were often set up separately focus, who will take care of the local from Chambers. This has weakened retail and service sector businesses? the role of many Minnesota Chambers to advocacy and small There was some discussion regarding business mixers. In my experience, approaches to business retention. I the community values these expressed concern that a "survey blitz" http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 6 of 19 creates a big stack of red flags at once, which makes it difficult to respond in a functions, but leaders in the private timely manner. I envisioned a "worst sector care more about a strong case" with a Chamber survey blitz economy. dumping a lot of red flags at the door of a City economic development staff person The declining role of Chambers in right during a major work crunch - community life is greater in resulting in complaints about a lack of Minnesota than in some other parts responsiveness, finger-pointing, and a of the country. For example, many loss of credibility for everyone involved. Chambers in Texas are very David Olson noted that CEOs who are involved in economic development. very busy would do the calls, so he The Midland Texas Chamber made a expects the survey process to take time. conscious decision to keep the (Hopefully everyone will communicate convention and visitors bureau, the and cooperate to create the "best case" economic development program, the scenario for the community and the small business, and advocacy customer.) programs (transportation, legislative affairs) in one strong organization. So what does it mean to you and your In a city of 100,000, the Chamber community? had 1,600 members, a staff of 16 and The private sector can be a powerful ally an annual operating budget of $1.5 in economic development. Some million. By contrast, only two communities have harnessed the capacity chambers in Minnesota have a many of the private sector in public/private members -the Minnesota Chamber, partnerships - such as Rochester Area and recently the St. Paul Chamber - Economic Development, [nc. (RAEDI), most all CVB functions are separate, The Partnership in St. Cloud, Progress and Chamber roles in traditional Plus (Inver Grove Heights and South St. economic development have not Paul), or the less formal Cambridge been notable. Development Alliance. In other communities, economic development is In my consulting practice, Economic handled primarily as a city function, Development Services, I have through the City's EDA and community worked with Chambers in or economic development staff, and there Wisconsin, Indiana, Texas and may be limited involvement by the Minnesota. Nearly every Chamber business community. survey I've reviewed indicates that economic development should be While the initiative is statewide, local the top priority of the Chamber chambers need to "opt-in." If you don't (regardless of whether they have a know, check with your local Chamber substantial program or not.) and see what they are planning. Chambers seem to be responding to the market -their members believe I think it is important that strong in economic development, and cooperation exist between all economic funders seem likely to pay for it. development players in the community and the region. This includes cities, economic development organizations, local development corporations, chambers, county and regional groups. It will be important that public and private leadership, especially funders, in the community have a clear understanding of the roles and responsibilities of all economic development partners. There is plenty of work to share, and there is always plenty of credit if it is shared also! Here are a few questions that might help you clarify roles and responsibilities in your community. What exists now? • What organizations and individuals in your area have responsibilities for various economic development? • What economic development activities (business retention, small business assistance, attraction, transaction related activities, and long-term strategy) are currently being addressed well? Which activities could be done better? • What capacities, skills and assets are available in the various organizations? Explore options • Which organizations have strengths and challenges in dealing with the following functions? In some cases, cities or EDA's will have legal authority or responsibility. http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 7 of 19 [n some cases the private sector will have special strengths. Both may find themselves with internal conflicts or political challenges. Take of'f your "turf hat" and really think about what might work best for the customer. o Handling retail and local service sector inquiries o Handling manufacturing, back office or corporate headquarter inquiries o Business retention calls o Follow-up on business retention calls o Building and sites inventory and updating the MnPRO site o Preparing financing packages; grant writing and administration o Developing and marketing industrial land o Handling downtown revitalization and other redevelopment projects o Creating policies regarding economic development incentives o Advocacy for expanding or relocating businesses o Providing small business assistance o Strengthening the relationship between workforce development and economic development o Communicating with internal audiences regarding economic development goals, policies & activities o Communicating with external audiences and target markets How can we best organize and work together? • Work together, or with a facilitator to identify how you can best work together to accomplish community goals and meet the needs of internal and external customers. • Put it in writing; review and clarify it annually. There will always be new staff, new elected officials, new Chamber volunteers, and new representatives of funding organizations that will need to know how the pieces fit together. bark ru up 2003 EDAM Economic Development Award Winners The Economic Development Association of Minnesota Congratulates the following 2003 EDAM Economic Development Award Winners! Practitioner La Donna Boyd, Dakota Electric Association Citizen Ralph Prescher, Faribault County Retention Sheila Haverkamp, Missota Paper Attraction Brooklyn Park EDA, Protein Design Labs Expansion/Retention Windom EDA, PM Windom Beef (Honorable Mention) Development Corporation of Austin, McNeilus Project ED Initiative Joel West, Northfield Community Land Trust http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 8 of 19 Marketing Event East Central Energy-Henry Fischer, North by Northwest Local Advertising ConnexusEnergy, Big Lake; Ramsey; Isanti; Hugo; Becker; St. Cloud Area EDP Best Marketing Campaign East Central Energy, Henry Fischer Best Direct Mail Cottage Grove, EDA buck ru Inn EDAM Foundation: Building Stronger Communities Through Education, Scholarships and Research The EDAM Board of Directors is pleased to announce the formation of the first EDAM Foundation. The new ~ " Foundation is governed by Past ~ ~ + EDAM Presidents committed to economic development education, research and scholarship. The first president of the new Foundation, Patrick Connoy, notes that the Foundation Board has already met twice and is now ' prioritizing its work activities. The first year will see continuation and - ° M'~_-~. possible expansion of the EDAM w' Internship and Scholarship programs. - He also notes that the Foundation Board will seriously consider ; scholarship opportunities for members and establish a scholarship , fund for both professional certification and college based economic development programs. Another area of interest is on-site professional consultation to communities on economic development issues and concerns. The Foundation Board thanks EDAM for its financial support and specifically the leadership of President Bill Lucking. Patrick Connoy will keep the EDAM membership informed of Foundation activities and asked that you contact him if there are suggestions or comments at 612-348-2215 or at~cl:.amnu~_~~r co.hcnnepin.nui.us. For more information duwnlutui the I~uundation Brochure or call the EDAM office at 651-290-6296. n„~~a ~n o-,n http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 9 of 19 r Pinnacle ; , ' r Engineering EDAM Member News To submit your personal or organizational news for publication in The Developer, please e-mail kcll~ hu_~~~ ald c~im. n Anoka County Grieves the Loss of KKE Architects Wins Best-In-Show Roger Jensen KKE Architects, Inc. received three first Mr. Roger Jensen, the Executive Director place trophies at the 2003 Revolutionary of the Anoka County Economic Marketing Awards. Topping the ranks in Development Partnership (ACEDP), died three of eight categories, the firm's work suddenly on Monday the 30th of June was recognized in Web Site, Corporate after complications from surgery for brain Identification and Best-in-Show cancer. He will be greatly missed by his categories. many friends and professional colleagues. The Best-in-Show distinction was given Mr. Jensen was 54 years old and had for KKE's revised company Web site, made significant strides during the last ten ~ti>~,h~~.ccim, which was designed and years when he helped to develop and developed by Minneapolis-based popularize an innovative economic Wolfmotell, Ltd. development program that has become to be known as the Anoka County Model. MSPE Announces 2003-2004 Board of Directors Roger Jensen was the singular figure that The Minnesota Society of Professional helped to foster this much lauded model Engineers (MSPE) recently announced for innovative economic development. He its 2003-2004 Board of Directors. The also contributed to his community with new board took office on July 1 and will non paid involvement in economic serve a one year term. development represented by his numerous years of service on the Lino Lakes EDAM Members elected to the board Economic Development Commission. include: For those of us that knew him and • Past President: Jeffrey Shopek, regarded him as both a visionary and an pE -Loucks Associates, Maple honorable professional colleague, we are Grove all saddened by his loss. • Executive Commuttee Member: James Overtoom, PE -STS Condolences to EDAM President on the Consultants, Ltd., Maple Grove Loss of His Wife • Director: William Anderson, PE EDAM sends its condolences to President - Yaggy Colby Associates, Bill Lucking on the recent passing of his Rochester wife Elaine after a long battle with breast • Director: Todd Christopherson, cancer. Elaine will be missed by all who PE - AMCON Construction, knew her. Burnsville Cottage Grove Announces Transit Lakeville News Enhancements Gander Mountain is currently Cottage Grove Mayor Sandy Shiely constructing an 87,000 square foot recently announced the groundbreaking of superstore west of I-35 south of County the new Cottage Grove Transit Facility Road 46 and will create approximately located just southeast of the Rodeo 150 jobs when it opens this fall. Boise Lounge, located 3/4 mile south of 80th Cascade recently completed the street along Highway 61. The project is construction of a new 70,000 square toot crucial during the Highway 61 and building material distribution facility in Wakota Bridge construction project, and Airlake Industrial Park. Jeff Belzer's will accommodate almost 500 vehicles. Chevrolet Dodge K/A broke ground for their 60,000 square foot expansion http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 10 of 19 Senator Sharon Marko, who has been located in the Airlake Industrial Park. instrumental in securing funding for TimberCrest At Lakeville, received transportation and transit projects for the approval for the second phase, which will area, is pleased to see the construction include an Applebee's Restaurant, project moving forward. Representatives Citizens Bank and a new 30,000 square Dennis McNamara and Katie Sieben, foot multi-tenant retail building. along with Senator Marko, have worked Lakeville Town Office Park located east to ensure that Express Bus Services to of I-35 on 165th Street began Minneapolis using routes 363 and 365 will construction and includes five town be continued for at least another year, office condo buildings. Advanced making the project even more important. Wireless Communications, a Metro Transit parking has been at capacity manufacturer and distributor of wireless in each of the last [wo interim park and communication products currently ride locations. located in Lakeville broke ground on a new building in the Fairfield Business An early-August opening is anticipated Campus. The 24,000 square foot facility for the facility. will be completed this fall. Easton receives Grant of $50,000 Goodrum Joins Schoell &Madson, The City of Easton applied for and Inc. received notification of funding for Thomas Goodrum has joined the establishment of a revolving loan fund engineering, planning, surveying and from the USDA Rural Development Rural environmental services firm of Schoell & Business Enterprise Grant (RBEG). This Madson, Inc. as Senior Planner. Mr. grant gives the City of Easton a grant of Goodrum brings extensive experience as $50,000 to fund a revolving loan fund for a planner with the Cities of Minnetonka the community. and St. Bonifacius, as well as a Sector Representative for the Metropolitan Council. As Sector Representative, Tom Jed Dulas and his Small Engine Repair worked with the cities in Hennepin business spurred the decision of Easton to County. hire Lepird Consulting of Fairmont to write the RBEG grant. Jed is renovating I At Schoell &Madson, Inc. he will the old Easton Lumberyard to house his Small Engine Repair business. Repayment provide site-planning services and assist of Jed's loan will create a revolving loan projects through the review process. fund for the City of Easton to utilize in funding future projects. This gives them Red Wing lands new White Rock Bank tools that they normally wouldn't have. White Rock Bank recently announced the construction on a new Red Wing facility The Faribault County EDA assisted in the located on the corner of Highway 61 and project by providing sample loan Tyler Road in front of Target. The guidelines, loan documents and business building is expected to be completed this subsidy policy to the City of Easton. fall. Thank you to all those involved in making Winnebago Loan Approved for Meter- this project a reality! Congratulations to Man, Inc. Easton and Good Luck to Jed Dulas!! The Faribault County Economic Development Authority (EDA) approved a loan request from Meter-Man, Inc. of Faribault News Winnebago in the amount of $35,000 to Faribault County Summer /nterns add an additional line for their new Jonas Peterson is currently a student Magnetic Sweeper. attending North Dakota State University and a summer intern with Rural Development in Austin. Jonas will be The Magnetic Sweeper is a new product focusing on the Workforce Goal of for Meter-Man and will fit in well with increasing awareness of existing the established measuring wheel line. The employers and job availability. He will be magnetic sweeper will open the door for developing a database of employers in the Meter-Man to develop other similar area and the variety ofjobs/careers products and add them to their product available to be posted the Faribault line. County web site. Currently Meter-Man employs 24 people Kerri Bouska is a student at the University 'n Winnebago and has hopes to add I-3 of Minnesota. Kerri will be working the new jobs with the production of the magnetic sweeper. Addition of this http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 11 of 19 county's strategic plan, first focusing on product line will diversify the products of the issue of Housing. She will do an Meter-Man and open new doors in the inventory and review of affordable future! housing to determine existing gaps. She will also research Healthcare, Human and Public Services Goal to identify existing information resources, identify utilization of available resource and determine the gaps in the resources/utilization of the resources. FCLRA Scholarship Announced The Faribault County Local Redevelopment Agency recently presented a $1,000 check to Billy Sabin of Blue Earth. Mr. Sabin is pursuing a Major in Urban Studies and a Minor in Geography. He only needs 49 more credits to receive his Bachelor's degree and hopes to achieve a career in a more stable field than crop farming or working in a factory. Mr. Sabin has been the President of the Bricelyn Development Corporation, member of college student senate, Unit Commissioner and Assistant Scoutmaster for the Blue Earth Area Boy Scouts, and an Associate member of the Blue Earth Area Chamber of Commerce. This scholarship was specifically geared to reward those who stay in Faribault County after receiving their diplomas by structuring the scholarship as a deferred loan. If Billy works within Faribault County atter graduation for three years, then his scholarship turns to a grant. n~,~ti~ Ciry~Oakdale 1'a vnur dcsebpmrnt rrre+l~„ cantrcC ('rrij VCrNrati t:ih' AdmirNStnuor (~SI)7b-ITIS crai~~riurddrlc.rfr6tb IS+i1 11~ulln A~'rnur \orth. <)ritdrk, M~ 5517x1 frx: (iSl) 7J0.2818 wrb: ri urkd~k~.nra~s Welcome New EDAM Members! Bronze: ProSource, James B. Crowl, III Two person firm: Anoka/Sherburne County Capital Fund One person firm: http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 12 of 19 Pamela Shaw, EnecoTech John Sullivan, City of Cambridge Sara Jayne Treiber, East Central Regional Development Commission LeeAnne Violet, STS Consultants Crt`~• <~t • Ma~1e Gm?ve Alaa A. Maclscu City Admir.istra:ar "ticrvlag Today, tihapiag 7ornorrow" 1?800 Arbor Lakes Parkway. P.O. r3ox t 180 A1apk (iruve, M~J 55311.6180 Plknc: (763) 494-G001 fax: (763) 494-6421 N'H' W,C i.maplo-~m0+'O.mn.us DEED News Special Minnesota Section to run in BusinessWeek The State of Minnesota, together with Governor Tim Pawlenty's office, is pleased to announce that BusinessWeek magazine will run a special section which will highlight Minnesota's advantages. The special section will run in [he Sept. 8, 2003, issue of BusinessWeek North America. This 2003 Minnesota Special Section will also feature a discussion about Minnesota's companies, professional and technical job opportunities plus its quality of life advantages. The text of this section will educate readers about Minnesota's industries, diverse economy and highly skilled workforce. Minnesota's unbeatable quality of life - a powerful tool in company recruitment efforts -will also be profiled. The State of Minnesota has negotiated a Special Economic Development rate for not- for-profit economic development organizations and communities within Minnesota. This special advertising section is a great opportunity for communities, economic development organizations and companies to help publicize their leadership role in Minnesota. For more information about this exciting opportunity, please contact BusinessWeek Special Advertising Section team leader Jim Armstrong at 815-334-9945 or at .linru'.lamc~•~rmsU~unt/~ssuc.com. hark ru run • • • • Publication Explores Legal and Business Issues of Raising Capital A newly expanded publication explores many of the legal and business issues involved in raising capital for startup companies and early-stage developing businesses. The book, Raising Capital: Securities Law and Business Considerations, is a collaborative effort of the Small Business Assistance Office at the Minnesota Department of Employment and Economic Development (DEED) and the Twin Cities law firm of Oppenheimer Wolff & Donnelly LLP. http://www.ewald.com/edamenl/julyaug2003/edamaugsept2O03.htm 08/04/2003 The Developer -August/September 2003 Page 13 of 19 Raising Capital offers a primer of information about legal and business issues that should be addressed by entrepreneurs and other business owners as they prepare for raising capital. It covers key topics like securities law, venture financing, private equity offerings, strategic alliances, initial public offerings, and raising capital via the Internet. Raising Capital: Securities Law and Business Considerations is available without charge in printed form at the offices of DEED and Oppenheimer Wolff & Donnelly, as well as on their web sites in a periodically updated digital format. DEED, 500 Metro Square, 121 7th Place E., St. Paul, MN 55101 Small Business Assistance Office, 651-296-3871 or 1-800-657-3858 www.dccd.statc.mn.us Oppenheimer Wolff & Donnelly LLP Plaza VII, 45 South 7th St., Suite 3400, Minneapolis, MN 55402 612-344-9300 www.uppcnhrimcr.unn hock ro Ion • • • Manufactured Exports Make Strong Comeback in First Quarter of 2003 After a more than a year of sluggish foreign sales, Minnesota's manufactured exports rebounded in the first three months of this year, rising 5.9 percent to $2.5 billion in the first quarter of 2003. During the same period, exports for the nation as a whole rose by 3.8 percent. It was the first growth in the state's manufactured exports since the third quarter of 2001 and a welcome sign that demand in a number of key foreign markets may be stirring from its slumber. "It's good to see international sales waking up with such vigor," says Commissioner Matt Kramer of the Minnesota Department Employment and Economic Development (DEED). "It's a turnabout that some of the state's manufacturers suspected might be coming." A DEED survey conducted in February showed growing optimism among the state's manufacturers, with more companies expecting orders to increase this year. Exports to most of Minnesota's top 10 markets showed double-digit increases. The most notable exception was Japan, where slumping computer sales helped fuel an overall export decline of 25.4 percent. Canada remained Minnesota's largest export market, with first quarter sales of $637 million, an increase of $89 million (or 16.3 percent) over the previous year. Transportation equipment, ranging from automobile parts to passenger trucks, accounted for $186 million in sales. Food products ranging from baked goods and pasta to oils and pet foods accounted for $100 million in sales. Together these two industries comprised almost halt of the state's exports to Canada. "Nothing better illustrates Canada's importance as our top trading partner than numbers like these," says Elaine Bliss, director of the Minnesota `trade Office. "They also reinforce the importance of the governor's upcoming trade mission to Canada." Governor Tim Pawlenty will lead a Minnesota delegation on a trade mission to Quebec in September, hoping to strengthen existing trade ties and make new inroads in the biosciences and medical industries. A more detailed export report may be viewed at www.exporuninnesota.com. http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 14 of 19 n„~k • • • • Revised Fourth Edition of "A Legal Guide to the Internet" Now Available The fourth edition of "A Legal Guide to the Internet" is now available without charge from the Small Business Assistance Office at the Minnesota Department of Employment and Economic Development (DEED) in St. Paul. The publication is a collaborative effort of DEED and Merchant & Gould P.C., a Twin Cities intellectual property law firm. New material in the revised fourth edition addresses recent developments such as accessibility issues under the Americans with Disabilities Act, search engines and banner ads, advertising and children, auction sites, and the new Minnesota Internet Privacy and Anti-Spam legislation. The guide also offers advice on getting started with a web site, protecting intellectual property, conducting Internet transactions and forming contracts. It also provides a detailed discussion of how the Internet can affect employer-employee relationships. And it addresses legal issues as costs that can be borne early in a firm's Internet activity to reduce the risk of more substantial liability costs later. "A Legal Guide to the Internet" is available without charge in printed form at the offices of DEED and Merchant & Gould, as well as on their web sites in a periodically updated digital format. DEED, 500 Metro Square, 121 7th Place E., St. Paul, MN 55101 Small Business Assistance Office, 651-296-3871 or I-800-657-3858 w~c.dtaistatc.nui.us. Merchant & Gould, P.C., 80 So. 8th St., 3200 IDS Center, Minneapolis, MN 55402- 2215 ~~~~~~.mcrchant-euuld.cum hack io rnn Labor Market News Survey Finds Minnesota ]ob Vacancies Down More Than 20 Percent From a Year Ago Minnesota's jobseekers are competing for fewer employment opportunities: job vacancies in the state are down 22 percent from one year ago, according to the new Minnesota Job Vacancy Survey report released online (~~~~~~~.MnV~'_urkl~~urccC~cnt~r.ur~/j~ihvacancv,lum) by the Minnesota Department of Employment and Economic Development (DEED). Despite the decline in total vacancies, a number of sectors show strong hiring demand. During the second quarter of 2003, over 8,000 employers across Minnesota were surveyed about their current hiring needs. From their responses, DEED estimates a job vacancy level of 51,000 - or two job vacancies for every five unemployed persons. Still, firms are hiring in all sectors across the state. Occupations with the strongest demand include: • Community and social services providers, including counselors and social workers http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 15 of 19 • Healthcare practitioners and technicians, including RNs and LPNs • Personal care and service providers, including childcare workers and personal and home care aides • Architecture and engineering occupations, including mechanical drafters and civil engineers "While the survey shows a job market that continues to struggle, it also reveals that there are many sectors that are doing quite well." said DEED Commissioner Matt Kramer. "The survey shows a continuing strong demand for jobs in the healthcare and social service areas." The Minnesota Job Vacancy Survey, conducted twice each year, is currently the nation's longest running survey of state job opportunities. To date, surveys have been conducted for fourth quarter 2000, second and fourth quarters of 2001 and 2002, and second quarter 2003. The next Minnesota survey will measure job opportunities during fourth quarter 2003. Major findings from the latest Minnesota Job Vacancy Survey are available online at ~~~ww.MnWorkfurccCentcr.ur~~tib~~acanc~.hun. hack m iun • • • Minnesota Business Developments by Mike Casey, Labor Market Analyst, MN Dept. of Economic Security online al rr'iri~~.:1/n!i'orkF~orce(~entei-.orQ Northern Two firms in northern Minnesota appear to be responding to the printing industry's economic woes differently. One, along-time player in the printing business, has closed its doors. Davidson Printing C'ompam, a Duluth-based firm in business since before WWII, shut down in early July, eliminating some 50 jobs. Davidson had employed around 100 workers as recently as five years ago. The company had been counting on some recovery during the first half of the year. The decision to close came when these expectations were not met. Another eight jobs at Graphics Digital Images (GDD were also lost. GD[ provided pre-press work for area printers, but most of its workload was from Davidson. GDI chose to close its doors as a result of the sharp drop in business. No sooner had one printing firm closed its doors but another was sold to new owners with experience in the industry. New owners of I'ro-Print expected the company would grow despite the printing industry's recent declines. The timing of the purchase should be a positive development as business activity may increase in the near future with Davidson's closing. And the owners of Pro-Print will have an experienced workforce to draw from as the company seeks to grow from its current employment level of about 25 workers. Twin Cities/Metro Area A recent addition to the automobile parts retail market in Minnesota, Auto/,one Inc. has opened ten locations in the Twin City metropolitan area and several in the greater Minnesota area since 2001. AutoZone stocks a variety of replacement parts for the do- lt-yourself mechanic as well as having a commercial program geared to the professional mechanics in repair shops. The Memphis-based company also provides several convenient services including tree testing of batteries, voltage regulators, and starters and will even loan tools out to the weekend mechanic. AutoZone now plans to add two more metropolitan sites (Cottage Grove and Minneapolis) and one in greater Minnesota (Owatonna) by the end of August. These additions will bring to 17 the number of locations in Minnesota. Each store supports about 10 to 20 staff members. Central A national publishing company marketing to corporate and school administrators has http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 16 of 19 closed a unit located in St. Cloud, MN. Birmingham, AL-based Oakstone Legal & Business Publishing Inc closed its call center in mid-June. Nearly 50 employees, mostly part-time workers, were at'fected at the St. Cloud location and another 18 positions were dropped at the company's call center in Burnsville. Only six employees remain at the latter site. Oakstone Legal had been purchased by a similar company which transferred work from the two Minnesota sites to its own call centers. Southern One of the top retailers hasjoined forces with a nationally recognized business located in Red Wing, MN. ticars Iluchucl. stores will now sell boots manufactured by the Rcd Wine tih~~r Since this past spring the shoe producer has manufactured a line of boots carrying the (l nf~snrm name, a brand name long associated with Sears. This marks the first time that the shoe company has sold its products through a mass retailer. Prior to this cooperative venture the Red Wing Shoe Co sold its shoes, boots and accessories through its own corporate stores and independent dealerships. The company, unique in an industry that has seen almost all footwear production moved to low-wage plants overseas, employs nearly 1000 Minnesota workers. Loss of orders by a major customer has hurt a small electronics producing company in Mankato Minnesota. Wieland I?Icctronics Inc designs, engineers and produces custom electronic components for its customers. Competition from companies manufacturing lower cost products overseas has cut into the demand for Winland's products from its second largest customer for the next 18 months. As a result, the company will be forced to lay off about 15 percent of its employees; some 13 workers will lose their jobs. The current economic situation has had a slowdown effect on southern Minnesota's largest employer. For a few years growth at the Mai Clinic in Rochester, MN has progressed with employment levels increasing by about 800 jobs per year. The economy, changes in payments received through Medicare, investment losses and several other factors were mentioned as reasons why Mayo will be unable to continue growing at the previous rate. Even though a slower growth rate is expected the strength of the employment base at Mayo and its international reputation as a quality health care provider should continue to provide support for many other jobs in the local economy. n„<a Development News State Receives $4.4 Million EPA Grants for Brownfield Revitalization Projects Commissioner Matt Kramer of the Minnesota Department of Employment and Economic Development (DEED) recently joined representatives of five other Minnesota communities and agencies to accept $4.4 million in federal brownfield cleanup grants from the U.S. Environmental Protection Agency (EPA). "These awards are an affirmation of Minnesota's creative and effective leadership in the field of brownfield revitalization," Commissioner Kramer said. "Minnesota's brownfield programs demonstrate that with a relatively modest public investment, we can leverage other private and public resources and restore blighted properties to productive use." Commissioner Kramer added that browntield redevelopment often results in the creation of new jobs, more taxable income, a cleaner environment and improved livability in the core metropolitan area and in suburban communities and around the state. DEED's Contaminated Site Cleanup Program received the largest single grant from the EPA, a $I million grant that will capitalize a revolving loan fund, from which loans and subgrants will be awarded to clean up hazardous substances from properties around the state and in the metro area. http://www.ewald.corn/edamenl/julyaug2OO3/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 17 of 19 Other Minnesota agencies and communities receiving grants included: the City of St. Paul, the St. Paul Port Authority, the Minneapolis Community Development Agency, Hennepin County and the City of Little Falls. EPA regional administrator Tom Skinner presented the grants at the Bruce Vento Nature Sanctuary in St. Paul. Since its inception in 1995, DEED's cleanup program has awarded more than $64 million in cleanup and investigation grants statewide. Local authorities are using those funds to reclaim 1,302 acres of contaminated or polluted property for residential, commercial and industrial development. The combined projects have created more than 1 1,000 jobs, increased the tax base by $37.2 million, and leveraged more than $1.3 billion in private investment. • • • New Metropolitan Areas and State Maps Now Posted On June 6 the Office of Management and Budget published new definitions for metropolitan areas in the United States. It also created a new category, Micropolitan Statistical Areas. Over a third of the counties in the country are now classified. Policom has posted the new definitions and color coded state maps on their web site to assist you in determining your area's classification--www.~olicom.cum - GO TO "Economic Development." nac6~ • • • White Bear Lake Firm Wins Governor's Trade Award A White Bear Lake-based manufacturer was recently named the winner of the Governor's International Trade Award. Governor Tim Pawlenty presented the honor to Cortec. The company set up shop in a small garage in Hugo, MN, hoping to do big things. The goal was to develop a chemical coating that could protect metal from the costly effects of corrosion but still be environmentally friendly. In the beginning, the kitchen sink doubled as the chemistry lab where the owner mixed ingredients that he processed with a coffee grinder. Today, the company employs 114 people and produces a full line of corrosion protection products at its state-of--the-art facility in White Bear Lake, as well as plants in Cambridge, MN and Eau Claire and Spooner, WI. About one-third of Cortec's sales come from international clients in more than 70 countries. For the first two quarters of this year, Cortec's international sales are up 55 percent, while the company's domestic sales are up 31 percent for the same period. "We're just a homegrown Minnesota business that's become a global company. We do our best to make world-class products," said Cortec CEO Boris Miksic. "We're honored and very pleased to receive this award." Presented annually, the Governor's Internaional Trade award honors a Minnesota company that has excelled in the international marketplace and recognizes the recipient's efforts to expand and promote the state's exports. The award also highlights the important impact exports have on the state's economic growth and future prosperity. hack a>InD http://www.ewald.com/edamenl/julyaug2003/edamaugsept2003.htm 08/04/2003 The Developer -August/September 2003 Page 18 of 19 NAIOP's Impact on Minnesota's Economy 'Huge', New Study Revea Is How do you measure the impact of a highly specialized trade organization on a state's economy? The Minnesota Chapter of the National Association of Industrial & Office Properties (NAIOP) recently addressed that question in a survey of its members. And the answers it received are startling. A statewide organization of commercial real estate property developers, owners, investors, managers, and other real estate professionals, NA[OP-Minnesota discovered that on a combined basis its 700 members owned or managed more than 125 million square feet of commercial and industrial buildings with an estimated market value totaling more than $8 billion. Mostly multi-tenant buildings, these properties are located in more than 250 Minnesota communites, including virtually every municipality in the 13-county metro area, and dozens of other towns and cities across the state. "Together, our members' buildings house more than 7,000 businesses of every size, employing an estimated 300,000 workers," said Jean Kane, Chapter President and president of Welsh Co, LLC. "On a combined basis NA[OP-Minnesota's tenant businesses paid more than $230 milllion in local and state property taxes in 2002, an average of $2,17 in property taxes for every square foot of space they occupied, or approximately $766 per employee." Kane said that the commercial and industrial buildings owned or managed by NAIOP- Minnesota members make up a major portion of Minnesota's expanding commercial tax base and reflect the growing importance of the commercial real estate industry to the state's economy. Copies of the study available by calling NAIOP-Minnesota at 952-928-7461, or writing to: NAIOP, 4248 Park Glen Road, St. Louis Park, MN 55416. hock lu !nn Download The Developer in .pdf format! If you'd prefer to just read straight through, you can download a .pdf document containing all of the articles in the digital newsletter. Just click the link below, save it to your hard drive and open it in Word. 77rc~ Uei~c~lu~er - : t uYU.~~l.Se~~tembe°~-2lll)3 Please contact the Kelly Biedny at the EDAM office with any questions, 651-290-7497 or kell~h u,~~~ al~l.cum. http://www.ewald.com/edamenl/julyaug2003/edamaugsept2OO3.htm 08/04/2003 a e r+,.~ I'~xcrl T. sterirrrna free or job opportunity zones (JOBZ) in from the subsidized project. The G~ce Pre.rldent the State of Minnesota. The legislation Minnesota legislation proposes card has taken its cue from established a formula to reimburse enrities for ~ ellerrf Repr~esentari,~e' initiatives in Pennsylvania (Keystone lost local property taxes -effectively x Opportunity Zone Program) and redistributing costs of zone development r~~ ~ A number of states Michigan (Renaissance Zone Program). partially to statewide taxpayers. have programs to The legislation allows for the establishment Anyone who has ever been in the rural entice economic of up to ten 5,000-acre zones located Midwest or mid-Atlantic regions development by outside the Minneapolis/St. Paul acknowledges that these areas are likely providing a vanety metropolitan area, including zones for to seize upon most any opportunity of incentives, ranging agricultural and mineral processing, as well to create additional jobs and private from business and personal income tax as biotechnology and the health sciences. investment. Rural policy makers are exemptions, and property and sales tax Economic development professionals are unlikely to decline incentives to exemptions or reductions, to job and keenly aware that tax-free zones. aren't businesses -regardless of need - investment tax credits. In North Carolina a "silver bullet," especially since results when a portion of the costs are spread they re called state development zones, from states that have similar initiatives and in Virginia, Iowa, Kansas and are often inconclusive. Pro onents statewide and the most immediate and Missouri, the are referred to as p recognizable benefits are allocated to Y of tax-free zones tout the high level their communities. Minnesota legislators "enterprise zones." Regardless of their of private investment and job growth, have taken a more global approach by legislative identification, they all operate while opponents argue that such weighing local benefits against statewide with a common goal - to provide development would have occurred costs. If costs can be minimized and the incentives to businesses that agree in the region anyway, absent the zones create jobs and private invest- to meet minimum investment and/or job incentives provided in tax-free zones. ments that would not otherwise have standards and locate within a designated Many states have legislation approving been created, it will be difficult to argue geographic area. incentives to businesses, the costs of that this type of stimulus doesn't It happened -the passage of legislation in which are generally borne by the local eventually manifest itself in greater 2003 authorizing the establishment of tax taxpayers gaining the most direct benefit economic advantages for the entire state. , _ _ _ 1 DAI~TA COUNTY TECHNICAL COLLEGE DST ..dent Wins I I~sidethisiss~~: National Skills USA 2 DCTC commencements ~ mark the end of f h®t~~rap~~ ~~nt~5~, another successful year 2 DCTC graduate, Glenn John Peters, a Dakota County Technical Hurd, finds success in College student from Lake City, Minnesota, architecture firm recently placed first in the SkillsUSA (VICA) championships for photography. - 2 Student and faculty; staff success stories Peters placed first in the entire nation for his photographic work, ability to use 35-mm., For his photographic ability at nationals, 3 Annua( Report medium- and large-format cameras, digital Peters was awarded a SkillsUSA-VICA $20,000 imaging, professional studio light sources and scholarship to the prestigious Hallmark 7 DCTC honor; equipment. In addition to this honor, Peters Institute of Photography in Massachusetts. He outstanding staff and was recognized for "Best of Show' and "Best will be in Boston in September to start a 10- instructors of the year Photographic" entries at the DCTC Visual month program at the school. Com~edurricatiors depaetment's portfolio show 7 U. S. Olympic held this spring. In addition, he won a $4,000 "I am honored to be recognized in this way," he Committee visits DCTC to SkillsUSA-VICA scholarship for placing second said. 'There was a Lot of competition, but the establ;'s" part„ershi~,` in Minnesota state competitions. training I received at DCTC really helped ° 8 IT Training site in Eagan hosts Minnesota Virtual Academy ~ ,,a 8 National Gt,ard ~ ~~k Archit~~ture graduate conducts helicopter ~ ~ tratni~rg on DCTC r)r.~una's becorn a partner ~n firm j Glenn Hurd is a true DCTC success story. In fact, he experienced immediate success upon graduating DCTC's Architectural Technology program 20 years ago. "I received two job offers on the same day when I graduated from DCTC," Hurd said recently. "The college did, and still has, r ^ ~ r~`j an excellent reputation out there." 1-t~ J' ~J 1 Following his time at the college, where he studied under faculty member Charles West, Hurd con- r E c t~ ti ; ~ ~ : c; t t ~ c~ ~ timed his education in a five-year program at the University of Minnesota and then went on to more school to obtain a masters degree. Asked how he chose architecture as a degree, he was straightforward. "It picks you. You don't pick it," Hurd said. His career path has been meteoric, with a number of local firms competing fiercely over the years to The DCTC Dispatch is a publicarioo of ~h~~ Dakota County land his services. Hurd is currently a partner in the acclaimed Minneapolis-based Leonard Parker Asso- Technical College President's Office. L'C?C is a member of ciates architecture firm. Ehe Minnesota State College 4 Unh~E~ slties System and an equaC opportunity employe.leduca±or. His list of credits is as impressive as his climb to the top of his industry. Hurd's credits include being the senior architect on the $150-million expansion of the Minneapolis Convenfion Center, completing detail work on the LaSalle Plaza, and designing an IMAX theater for Caesar's Palace in Las Vegas. C~ ~ I I I ' St n ude t eme r end uccess~s ful der~~ ear y DCTC is proud to enroll high..-quality students~'r. To the familiar refrain of Sir Fdward Elgar's of all ages, backgrounds and talents., Th7s ( year has yiettled some incredible successes , "'Pomp and Circumstance„" DCTC graduates from our student: body, including:. filed into the Roy Wilkins Arena on May 8 for a, the Class of 2003's formal graduation ceremo- • The Dental Assistant program achieved a ~ ny, In addition to recognizing hundreds with 100-percent ticensure exam pass rate. degrees, diplomas and certificates, the col- Fifteen students completed the colleges lege honored two graduates with the Dave ' leadership Academy program. ; Schroeder Outstanding Student award for - their accomplishments - Kim Reinisch ~ • Nursing students en}oyed a 74Q°lo pass.;; ~ (Graphic Design Technology) and Duane ~ ~ ~ ~ r gate on the State Board rif Nursing exam Prather (Machine Toot Careers)a r s 1 ~.y. DCTC's Blue Knights women's soccer team Graduates, families and friends also were signed a flil! slate of over 20 members to = treated to a stirrin commencement address ' play its mauguml season. in August.' g delivered by Stevie Ray, of Stevie Ray's Students from the P,~otographic ; ~ Improv Company. There were plenty of smiling faces on May8, as the class Technology program developed a ,four- . - of 2003 graduated at Roy Wilkins Arena. culor calendar featuring photgs taken ort ; ~ On May 28, graduates from the college's ASEP "Minnesota's Noah Shore, (Automotive Service Educational Program) and Speakers included officials from General Motors, • .Six DL'~C Buie fCnigtits wrestters~quahFied BSEP (Body Service Educational Program) Dean of Transportation and Industry Mike Opp, ' fur The National Junior College Athletic groups also partidpated in a special ceremony and instructors Mark Hickman, Tim McCluskey, Associatiart"championship;. in Rochester this and dinner to recognize their accomplishments. Ed Norton, Larry Boser, and Scott Logan. C~ spriny..DCTC- finished ninth overall in the competition, .:~i° ~Seveir students in E)CT[s VICA program woF~ First-~-and second pta~e #~r~or~ inr a recent m~pet~t,un ~ es a fro m Facul Staff ~ . inn dab ersh~p ~~~bCTC is;also`preud to employ same,ueredihle' _ A recent $331,154 grant to DCTC from the training and gain access to e-learning courses. faculty and stuff ~.vho ezhitiit a stcona we~rk Minnesota Job Skills Partnership (MJSP) will "This grant illustrates how private-public ethic and. comn~itanent to service urr a daily enable 492 Lakeville-based ConAgra Foods partnerships can work well in today's chang- '`basis. Some who, have :been reCggnized employees to receive advanced shop-floor ing econamy," said DCTC President Dr. Ron recenttyinc[ude: Thomas. "DCTC is looking forward to helping • Paul DeMuth; 2002, ~1nSCU Outstanding equip ConAgra Foods employees with the Employee Award, high-quality training they will need in Lakeville.°° • -DCTE Business (3ffice 2002: MnSCLi ' Outstanding Service Award... DCl"C's courses associated with the grant wilt ~ ir~dude robotics, operator technician, • Ken Ktassen, :Chris Haan, Mike Long, machine operations, and e-learning courses Connie Larson, Dianne Husby, Mitch Kohanek, and Mark Ramseth earned DCTC on safety and production topics. Training will "At!-Star:' awards. ~ be offered on all shifts at the Lakeville facil- ity, and e-learning courses will be available • Diane Frandrup, Caroline Harris, and , for distance learning. Scott `6underson earned .''FISH" out- standing customer service awards. Joining Dakota County Technical College President Ron Thomas (left) for the signing of a $331,154 grant at ConAgra Foods ConAgra Store Brands Lakeville is one of three • Gera Collins was given: a student sup- were State Representative Steve Strachan (R-Farmington), Rick ConAgra production plants that manufactures Caligiuri of the Minnesota Jobs Skills Partnership, Robert rivate-label ~e crusts, ranola bars, cereal port services grant award. p P 9 Morando of ConAgra Foods, and Michael Murphy, Associate Vice and fruit bars. (~j Chancellor for Minnesota State Colleges and Universities. • Todd 3agerson received a $ 0,000 Capella University Alliance prog-ram ' scholarship. Cf_i''~ ~ I ~ ~ ~ I. ~ ~ ~ ~ v ~ ~ Y ~ ems- r ~ ~ DAI~TA C~UNT~ ~'EC~-~1~1ICAL C;~?LLEGE t~ The college a ~ - celebrated a - Uward Bound Grant Awarded nSC Honors 0 DCTC was awarded an Upward Bound Grant by The Minnesota State Colleges and Universities the United States Department of Education, system honored the DCTC Finance Department Upward Bound will serve a total of 50 first- with an Excellence in Financial Management ~ O generation,. low-income students at South St, award for its work in the past fiscal year. DCTC Paul and Henry Sibley high schools. Goals are Facilities Manager Paul DeMuth also was honored p ~a C2 ~T1 C nt to provide participants with skills necessary by MnSCU with an outstanding service award. f'" for pre-college academics and prepare them l.G f ~ ~'~C for college success. J dew Student fife Center f~~pc ~ DCTC opened a new Student Life Center includ- g u U GJ ~onS Begln Sept. 1 ing computers for student use, cable television, Upward Bound wilt begin Sept. 1, 2003 and student organization offices, and a conference provide weekly in-school tutorials and advising room.. The college also opened a new Wellness sessions, Saturday academic sessions, intensive Center in FaU 2002. six-week academic summer programming, and -9 work-study positions to expose participants to careers requiring apost-secondary degree. ~M Record Training New Athletic Programs The college's General Motors Training Blue Knight athletic programs continued to Center trained more automotive techni- attract new students to the college. The clans than any other GM satellite training wrestling team finished ninth in the nation in center in the United States in 2002. i ~ its second season, while the baseball team DCTC's 483 center graduates surpassed 111 played its inaugural game at the Metrodome longtime leader Sinclair Community vs. Fergus Falls on March 9. Women's soceer- College's (Dayton, OH) mark of 468. This ~ ~ gets underway in August 2003. DCTC also was an impressive feat, considering I DCTC's program is only in its third year of hosted the Minnesota State Weightlifting championships in March. existence. oodfinishing Conference iJSA Academia Nominations DCTC hosted its second-annual national - Two DCTC student< were nominated for the woodfinishing conference in May. Hundreds , USA'Academic Atl-Star Team, an honor spon- of woodfinishers from across the nation cored by Phi Theta Kappa, the American attended this two-day event, adding to the - Association of Community Colleges' and DSA college's notoriety in this field. Today. Nicolas Werner of Hastings and Susan Schuster pf Owatonna were nominated by l DCTC President Ron Thomas for their out- standing grade point averages, academic Record Blood Drive honors at the college, and service to DCTC DCTCs Student Senate sponsored two American Red and the surrounding community. Cross blood drives .and successfully collected 105 units of blood. '~I rangy Business A $331,154 grant to enable 492 ~ n ~ I ~ ~ ~ r ConAgra Foods employees to receive j J , y advanced shop-floor training and gain aceess to e-learning courses. Generous Estate DCTC has: a strong foundation of ~ St. Paul Yesident Cart Eastvold Left business and industry partners. A $400,000 grant to provide preparation This year DCTC received over $1 his entire $500,000 estate to the million in rants to hel Coda s for public assistance recipients seeking 9 P Y DCTC Foundation, ensuring his lega- work Orce thrives employment in the health care industry. ey will live on to benefit students f for years to coma Giant ConAgra Foods A $10,000 grant from 3M in support of $331,154 the college's newly launched Electrical OOld7ng Pr0]eC# - Construction program. DCTC received $500,000 to complete Flealth Careers design for renovation of the colleges $400,000 K-(dart Grant library and IT/Telecommunicationsoreas and as part of the state bonding legis- _ _ - A $281,000 grant from K-Mart for sup- lotion passed during the 2003 session. ply change management and distribu- 3 M $1 U, 000 tion services. This grant is a unique tie- ~ _ in with distribution plant training and f;', ~ C Grants ~ r- ~ , logistics through the college's trans- r l,~ ~ , ~ ; N~1 portation department. he Employment Training Center ti based at DCTC handled $938,964 in ~r grants during tl}e past fiscal year in ~ - four areas: welfare-to-work; federal '~,t COnCrete I~lasOnry Grant and state dislocated workers pro- r An $8,000 Perkins grant in support of grams; incumbent worker training; the new DCTC Concrete and Masonry and dislocated worker projects for program starting in August of 2003. individual companies. _ K-Mart $281,000- The college's Landscape Horticulture ~ - program was awarded a $1,000 grant by ETC Grants the MNLA Research and Education Investment Committee for purchase of $938,964 new equipment to be used by students in the landscape estimating and bid- ding classes. This is DCTC's second COnCrete & MaSQnry Nanotechnology Grant MNLA grant, making DCTC the only An $8,000 Perkins grant devoted to technical college to be so awarded. $8, ®00 research and marketing of a possi- ble new nanoscience program at the college. DCTC also was given E1nani~ ~ approval to enter the second phase More than 1,063 students received pept. Of EdUCafiOn of a National Science Foundation financial aid to attend DCTC during the $1,000,000 grant application to support its nanotechnology initiative. past year. I ! i ~ ~ ~ I. r I II I Y I allege r Ridgy DCTC ranks fifth The first "College for Kids," with courses on crafts and photography held its first sessions in MnSC~I for the in Summer z°03~ , number of online ~_l,~xed cour$e offering$. More than 7,000 people participated in DCTC's Customized Training programs throughout the year. These customized courses cover many B u s i n topics, including: IT, telecommunications, ~ Enrollment at All-lime High supervisory management, nursing assistant EnmUment was at an all-time high, with 2,133 full- certification, public safety, corporate securi- time equivalent students each semester. This was a ty, law enforcement, transportation, and 5-percent increase over FY2OO2. manufacturing. ~ Fit ra ~c~ar-old fotaro-~ Olympic Weigh*liF:er New Program ®~t19n5 Cu~~v Safe lifrs ,3r the nee .apple vatey Training The cone a added certificates in Network Su ort s;u 9 Pp ~P1A+ /Apple Services and Routing and Switching Technology, in addition to A.A.S. degree options in Electrical ?l?~~.Q3 N 9rr?~?<?JfP Lineworker and Construction Electrician, and an DCTC's Apple Valley site opened in _ . A.S. degree in Exercise and Sport Science. June 2003. The site is a pubic-pri- vate higher educational partner- ship among .DCTC, Saint Mary's New Programs University of Minnesota, and Inver Hubbs Center Advisor Hilts Community College. Tn April, Added I DCTC's multicultural advisor provided academic the site was visited by llnited advising at the Hubbs Center in St. Paul. States Olympic Committee CEO Jim Shcerr to endorse the location for its Olympic-caliber strength train- In Fa11 2002, we began I-CAR Certified ;ng `nurses. BU51neSS EntrepreneUl; DCTC was only one of two Minnesota colleges to be Database Administration, certified by the Inter-Industry Conference on Auto Collision Repair (I-CAR), a distinction that means the college's graduates can gain much-needed Electrical Construction, training points and move up in their profession to _ Exercise and Sport Science, higher-paying jobs more quickly. Marketing Design .and Sales, Medical Coding Specialist and The Next Big Thing DCTC illustrated how it is on the cutting-edge of Web Developer.. Tn Fatt 2003, technological trends, when nationally recognized We lNTll add Concrete and nanotechnology expert, Jack Uldrich, came to cam- pus to keynote swell-attended conference on this < MQSOnry arld Conference and emerging science. Attendees included local CEOs, business executives, research and development .Event Planning. directors, elected officials, engineers, scientists, and educators. Vice President Karen Halvorson is providing the leadership for the initiative. 1 1 I 1, ~ ~ Winning Designs z aw: Dawn LeClair, a DCTC student enrolled in the college's Applied Visual Arts program, "ix current studerrts took the test for becom- ~ designed the winning entry in a contest fir 'ng ? Cerl"ifiet Nursery and Landscape find a new design for the Hastings Pro~essionat. DCTC students had the second- Community Education organization. nig, e>t (Mary Richardsont and third-highest (Sandy Proshek) scores. This is the highest _ participation and success rate of any Prtinnesota coltoye program. Acts of Goodwill The Beta Theta Tau Chapter of Phi Theta Michelle Snesrud, Pres;dr;nt of Kappa Honor Society at Dakota Count, seta Theta Tau Technical College participated in "Project Graduation - Feed a Body, Feed a Mind," an - initiative designed to help alleviate hunger ~ r ` - Beta Theta Tau and illiteracy in our community. Graduating ~ students and guests brought non-perishable food items or books to the college's gradua- indueted 11 D tion ceremony. f new students Horticultural Honors and received Students and recent graduates of DCTC's Landscape Horticulture program collected a ~illat~mata Trip variety of honors at the Minnesota Nursery and DCTC faculty and staff showed their five-star chapter Landscape Association ~MNLA) convention. commitment to those less fortunate Two DCTC graduates won Awards of Honor in during a January 2003 trip to status from Phi the annual MNLA design competition -Wendy Guatemala. A group of 12 from the Loomis and Karen Jurewicz were awarded in college assisted the San Lucas Toliman the Residential Design category. Three DCTC Mission with a number of construction Theta Kappa. students were awarded $1,000 MNLA scholar- and community service projects, ships, including Laura Osberghaus, Janna indudinq a major reforestation effort. Gitbertron, and Sandra Proshek. } • _ DC~C~hel~ed neorty~ Z00 organizations deveEop their lvorkk~~roe acid impr~ve~ theircorx~pany's au~omes. • Moue than 7,000 employees participated ire' Customized Tic~~ing pr~ogr~tns. • DC1C receii~ed over $i minion in business and industry grants. Transpor~a~ion ~ ~ ~ Su~ervisQry Management ~ ~ ~ Manufacturing Last year the Corporate Truck Dnyer Training pro- •The Business ,and Professional l)evetopment pro- The manufacturing department is partnering gram produced .115 Class A ~frtick dnvers, and - 'gram op{~ned at the Nigher Education Partnership in with Al[ina, District One Hospital, Fairview, enjoyed a 99.14°!o success rate. Two ~ditional .Apple ~l~lley to better serve the bwrne~ communi- Health East,. Hennepin. County Medical Center, start dates have been added. DCTC has also part. ty;and hascontinued working with clients, such as North Memorial Medical.. Center, "Universal raered with the Minnesota M,atorcycle Safety Center' Mali-O-Meat and Dgnaldson`s. Coachingrr~entoring,- .Hospital Services and the VA Hospital to offer a (MMSC), Driver and Vehicle Service (a division of , ~ aRd p~insurance licensing prot~iams were added. Biomedical Equipment Technology' program: A the Minnesota Department of Public Safety 1, a,nd corrosion field for locating buried wires, and other sponsors to provide one of the roost compre- other objects, is ~lsQ being developed for new hensive motorcycle safetyproyrams, Tf'Trainng training programs. The IT Training Center and Ascotta ale bring- ing their partnership to a new [suet: -The IT TeleCOm Law Enforcement Training Center is .the only ,college yin the The Law Enforcement department centrnus ~~to Minnesota _ State Colleges ~nd~ ~Uniuersities Thanks to the help of partners, Frontier, Nortel, and work closely with local agenaes to keep Mrnnesota system that is able to "deliver. Fast=Track ADC, DCTC telecom department installed" a switch communities safe. Advanced courses have been " courses on location:. ~Ascolta staff."wilhalso be worth over $1 million dallars.The switch will bean added in Pursuit Immobilizahv~~ Techniquz (PIT) . on Site, , e;lwring that students are :.getting integraLpart of hands-on telecom training. and Tactical Vehicle Intercepfi (TV>). New courses in Cisco training as only Asco[tacan deliver. corrections have also been developetl., ~ ! i I I I i, l I Il ~ - - - - uCTC's Mitch Kohanek and Diana Sullivan i/oth (Strsdent Services),, and Steve ~ i were recently recognized by the college as Heimueller (Finance), were named for their t:he outstanding instructors of the 2002-03 commitment to quality work and customer school. year. Both individuais were chosen service. Congratulations to all? ~ following a student-driven nomination f' `''•t process, a evritten essay and an oral interview I - - - - h with students, staff, and faculty members. - ~ Asa result of this honor, Kohanek and Sullivan traveled to Austin, Texas in May to ~ attend the National Institute for Staff and ~ ~ Organizational Development (NISOD) con- - ference and award ceremony for outstanding ~ ° - >r ' technical and community college faculty. ~ ~ Outside the classroom, four DCTC staff mem- ~ hers also were lauded recently. College employees Todd Jagerson (MIS), $radd ~ ~ DCTC's Mitch Kohanek at left center and Diana Sullivan above, Strelow (Customized Training), Kristine `K~ _ far left) were named (outstanding Instructors of the 2002-03 school year and nominated for national honors. DCTC ~?ppte Valley visited by CEO of E1.~. C?lympic Committee To .endorse Dakota County Technical "We believe the 'creation of such a site in ~ College s new initiative in athlete- and Apple .Valley is a valuable addition to not coaching training, the United States .only our college, but the entire region," ,s RR~ Olympic Committee's Chief fxecutive said DCTC. President Dr. Ron Thomas. "We Officer paid a visit to DCTC's new Apple are honored that Mr. Scherr and Mr. Barnett Valley location on April 23. came to show their strong suppart." During a press conference, aim Scherr In addition to the site's relationship endorsed the DCTC Sports Education. with the U.S. Olympic Committee, the Academy concept. for coaches' .education, college, Apple Valley site also is home giving it the full support of the USOC. The to a higher education partnership SEA is housed in the former Apple Valley anchored by DCTC, Saint Mary's City Hall, 14200 Cedar Ave. University of Minnesota, and Inver Hills Community College. USOCCEOJim Scherr (center) and USA' ~al~~lifiting'S Wes Following Scherr's comments, Wes .Barnett (left) accept a DCTC commemora[r:e coi;, from DCTC Barnett, Executive Director of USA The location is home to undergraduate President Dr. Ron Thomas. Weightlifting, announced the creation of and graduate degree courses, bringing a a regional training site fore USA valuable educational resource to the For more information about DCTC Apple Weightlifting at the facility. southern metropolitan area. Cjr> l/alley site, call 952.997.9574. AI~TA COUNTY f TECHNICAL COLLEGE 1300 145th St. East • County Road 42 • Rosemount, MN 55068 Phone: 651-423-8000 Fax: b51-423-8775 E-mail: admissions@dctc.mnscu.edu Web Site: www.dctc.edu David Olson Comm. & Econ. Development Duector City oFLakeville 20195 Holyoke Avenue Lakeville, bIN 55044 Dakota County Technical College is a member of the Minnesota State Colleges & Universities System and Equal Opportunity.Educator/Employer. This document is available in alternative formats to individuals with disabilities by casting 1-877-YES-DCTC or V/DD Services 1 651 423 8fi21 t f } p YY.•~ ail' s ~ti. ~::(F.d P~lv11 FI Ft~IP!1~!Il!~I~FF~~.t 4f fi~it#i~l~~l ~tlf!!~I!~ffi~t{.#1113ti) ~ Minnesota U~.r~ua~ Academ C ~sts ~ y +Guard trainin ~t D ; iH=' - ~ ~a -n sit g a CTC s a e g _ When the Minnesota Virtual Academy; an According to DCTC Customized Training - online U-7 home-based learning organiza- Representative Bradd Strelow, MVA start- tion needed a location to hold in-person ed using the college's Eagan facility last classroom courses, Kevin Uelleher, Director fall and already has signed up again of Development, called upon DCTC's IT starting in August. "We provided just With the nation at war in the Middle Training Center in Eagan for a solution. what they needed in one convenient East, Dakota County Technical College location," he said. (DCTC) did its part earlier this year to While the Virtual Academy is a leader in help show support for the troops. the field of online learning for home- Other companies also use the IT Training schooled children, the company provides a Center fora wide variety of training For example, when the Minnesota more "traditional" classroom setting every needs, including Cisco, Microsoft, Java, National Guard requested use of the cam- two weeks so students can interact with a and Citrix, just to name a few. For more pus grounds to conduct fueling training for its powerful Blackhawk helicopters, Licensed instructor and other kids. DCTC's information, call (651) 406-4754 or go to college officials quickly agreed. Eagan IT training facility, with available www.dctc.edu/it-trainingcenter. classroom space and high-quality comput- "We are proud to help out the National ers, provided the solution MVA needed. ~ M I N N E S O TAB Guard in any way we can," said Customized Training Coordinator Mark ~ V I R T CJ A L A G A ll E M Y LaMere, who helped arrange the train- ing at the Rosemount campus. CJr''~ 1 ~ I ~ ~ ~ I! ~ ~ ~ ~ L Lakeville edition H~nrs _ ~ e, ~?~h~ A bi Nati NOTES r r'` ~ ~ ~ Aug. 14, 2003 s Residents amass 1,6a r. - ~ ~ - ~ _ pounds of food for CA BY TIM BARTLETT ~ ~ ~ Sun Newspapers Tons of fun and nearly a food were the result~~ Lakeville's National Nigh parties. The city had 41 parties f~ ~ Aug. 5 event, which was ; ' more than last year, said $Cene frolln Clemmer, crime preventiot _ ~ - cialist with Lakeville Polio 1 f11P a K also coordinates the Nat t u six,. = . Thousands of resi- Night Out festivities. dents - as well as the Several of the neighbo~~ goose pictured above get-togethers had more th,. -turned out last week residents, an encouragin for the Dakota County that could be a signal for hog Fair Tim BartletUSun Newspapers ular the annual event is b Pnce 2A The renovated exterior of. Ben. Franklin is one of the new highlights of ;ng, she said. downtown Lakeville: Anew twist was added W11111111g tional Night Out in Lakevil aWaPCIS • • year, Clemmer said. Reside3 Businesses are opening tending neighborhood bloc. From preparations ties were encouraged to for potential disasters to food to donate. to the Conu1 a library program cele- • • Action Council (CAC) food brating diversity in the ex an d ~ n ~ n d own~own The people didn't disap state, Dakota County p g tallying 1,604 pounds of foo~ recently won several Chief Dave Martens. Gz~ national awards recog- Beri Frari~lIl faCehfk a1S0 a "There are a lot of opportuni- bags filled a large portion nizing its programs. ties to .come to downtown department's meeting morn "Part of our culture. pr0I11111erit add1t10ri Lakeville- to improve your mind cereal,. canned goods, di, in Dakota CountX.is tq , - and_~ody," Schebier Roberts said. constantly search for ~ BY TIM BARTLETT One obvious change to the efficiencies by being in- ~ novative and creative," Sun Newspapers downtown landscape is the said Dakota County facelift at Ben Franklin. Store Commission Chairper- Downtown Lakeville has be- owners Scott and Cindy Erickson son Will Branning. "We come an ideal place for browsing remodeled both the interior and are very proud that our for antiques, having a quilt sewn, exterior of their business. work is considered best fording a personal injury lawyer The upgrades were completed . practices models on a or even just searching for a little in early spring, they said, and national level ° of This and That. many customers have comment- Pace 3A Several new businesses have ed on how nice the store looks. Hel 111 opened in the past few months in "It gives it a nice fresh look," t P g the downtown area, while others Scott Erickson said. Students have. expanded product lines or "We're real pleased with the ; had facilities remodeled, said way it looks." Elise Schebler Roberts, executive Whether or not the work has Staff members in School District 194 are director of the Downtown brought in new customers isn't ~r,.~ ; using new technology Lakeville Business Association known to the Ericksons, but the to make educating peo- (DLBA). 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W~ D'~~~s ~ v Di U ~ S:"" to s+ O m v ~ f: c~ O N ~ v OA fN .-r ~ :6 O ~ ..+-"~~~~wvv~3sr.~- ~O•..m ~cns+~•..,vm~~vi,.,~ yC+, ~i',' ~'c3.r,.~+-~rn~ Q p GOi bA ~ ai 'O «i ~ H •c O v ~ y ++o of ~ x W c~! ~-~f ~ H pi U ~ ° p ~ ~ m ~ s. s. v v o s.., v ~ u, 3E" cn g.~~~A o v 3•rs~ cuH o F ~ W 'ts Alfson, Amanda From: Linda Swanson [ImswansonCisd194.k12.mn.us] Sent: Saturday, July 12, 200310:19 AM To: Alfson, Amanda Subject: Re: Thank you Amanda, Since I am a visual person, I would have liked to have either reference material before the presentation or information to review at the time. I don't know what the policies for Economic Development currently state. I am encouraged, however, that the city and the school district could finally cooperate on c this - and many other - issues. Linda Swanson. On 7/8/03 8:27 AM, "Alfson, Amanda" <aalfson@ci.lakeville.mn.us> wrote: > Thank you for taking the time to attend the Himle Horner presentation on > Communication Strategies for Economic Development on Wednesday, July 2. > It would be extremely beneficial to get feedback on the presentation regarding > the proposed communication strategy and our plans for implementation. Please > contact me at (952) 985-4425 or email me at aalfson@ci.lakeville.mn.us with > any feedback you would like to provide. All input is greatly appreciated. > Thank you, > Amanda Alfson > Economic Development Coordinator > City of Lakeville > (952) 985-4425 > > [This E-mail scanned for viruses by Declude Virus) Linda Swanson Communications Coordinator Lakeville Area Public Schools 8670 210th Street West Lakeville, MN 55044 952-469-7125 612-880-3489 - Pager 952-469-6054 - FAX [This E-mail scanned for viruses by Declude Virus] 1 Alfson, Amanda From: bbrantly@ usfamily.net Sent: Tuesday, July 08, 2003 2:12 PM To: Alfson, Amanda Subject: Re: Thank you Amanda, The only suggestions I would make at the present time would be to continue to hone the presentation with meaningful visuals and copy tuning and to tailor it to the particular groups who will see it to whatever extent possible. The message should be kept alive through whatever other channels are available to us. Sincerely, Bob Original Message From: "Alfson, Amanda" <aalfson @ci.lakeville.mn.us> To: "Michaud, Steve" <smichaud @ci.lakeville.mn.us "Nelson, Keith" <knelson @ci.lakeville.mn.us "Martens, David" <dmartens@ci.lakeville.mn.us "Tom Smith (E- mail)" <BCGOLF123 @aol.com "Palm, Susanna" <spalm @ci.lakeville.mn.us "Guenther, Lea" <lguenther @ci.lakeville.mn.us "Visnovec, Brenda" <bvisnovec @ci.lakeville.mn.us "Zarras, Ginny" <gzarras @ci.lakeville.mn.us "Todd Bornhauser (E- mail)" <todd @lakevillechambercvb.org "Vogt, Chris" <cvogt @ci.lakeville.mn.us "Schiffman, James" jschiffman @ci.lakeville.mn.us "Lueders, Jeff" <jlueders @ci.lakeville.mn.us "Jeannie Schubert (E- mail)" <admin @atlas- usa.com "Volk, Don" <dvolk @ci.lakeville.mn.us "Feller, Dennis" <dfeller @ci.lakeville.mn.us <jeanne @visitlakeville.org <bbrantly @usfamily.com <gmamoroso @ISD194.K12.MN.US <lmswanson @ISD194.K12.MN.US> Cc: "Erickson, Robert" <rerickson @ci.lakeville.mn.us "Olson, David L" <dolson @ci.lakeville.mn.us "Jack Matasosky (E- mail)" <jackm @approdevelopment.com> Sent: Tuesday, July 08, 2003 8:27 AM Subject: Thank you Thank you for taking the time to attend the Himle Horner presentation on Communication Strategies for Economic Development on Wednesday, July 2. It would be extremely beneficial to get feedback on the presentation regarding the proposed communication strategy and our plans for implementation. Please contact me at (952) 985 -4425 or email me at aalfson @ci.lakeville.mn.us with any feedback you would like to provide. All input is greatly appreciated. Thank you, Amanda Alfson Economic Development Coordinator City of Lakeville (952) 985 -4425 http: /USFamily.Net /info Unlimited Internet From $8.99/mo! 1 Alfson, Amanda From: Martens, David Sent: Tuesday, July 08, 2003 10:29 AM To: Alfson, Amanda Subject: RE: Thank you came away with a new appreciation for Lakeville -the council, city administrator, planning commission, community and economic development departments, etc., because almost everything that the speaker suggested as something positive, was something that Lakeville is already doing. After you've been in the community for a while, and as I travel through other communities that have, obviously, not paid as much attention to these details, you gain an appreciation for the "smart" growth and development that Lakeville constantly grapples with. Anything that helps in providing consistent information is of benefit for the city. It is something that we strive to do in the LPD that is very difficult, especially in a 24/7 operation. Thanks for asking. -----Original Message----- From: Alfson, Amanda Sent: Tuesday, July 08, 2003 8:28 AM To: Michaud, Steve; Nelson, Keith; Martens, David; Tom Smith (E-mail); Palm, Susanna; Guenther, Lea; Visnovec, Brenda; Zarras, Ginny; Todd Bornhauser (E-mail); Vogt, Chris; Schiffman, James; Lueders, Jeff; Jeannie Schubert {E-mail); Volk, Don; Feller, Dennis; 'Jeanne@visitlakeville.org`; 'bbrantly@ usfamily.com'; 'gmamorosoC«~ ISD194.K12.MN.US'; 'Imswanson C~ ISD194.K12.MN.US' Cc: Erickson, Robert; Olson, David L; Jack Matasosky (E-mail) Subject: Thank you Thank you for taking the time to attend the Himle Horner presentation on Communication Strategies for Economic Development on Wednesday, July 2. It would be extremely beneficial to get feedback on the presentation regarding the proposed communication strategy and our plans for implementation. Please contact me at (952) 985- 4425 or email me at aalfson@ci.lakeville.mn.us with any feedback you would like to provide. All input is greatly appreciated. Thank you, Amanda Alfson Economic Development Coordinator City of Lakeville (952} 985-4425 1 Alfson, Amanda From: Jack Matasosky [jackm C approdevelopment.com] Sent: Tuesday, July 08, 2003 9:31 AM To: Alfson, Amanda Subject: RE: Thank you Thanks for the follow up! Hopefully a great way to get feedback!! -----Original Message----- From: Alfson, Amanda [mailto:aalfson@ci.lakeville.mn.us] Sent: Tue 7/8/2003 8:27 AM To: Michaud, Steve; Nelson, Keith; Martens, David; Tom Smith (E-mail); Palm, Susanna; Guenther, Lea; Visnovec, Brenda; Zarras, Ginny; Todd Bornhauser (E-mail); Vogt, Chris; Schiffman, James; Lueders, Jeff; Jeannie Schubert (E-mail); Volk, Don; Feller, Dennis; Jeanne@visitlakeville.org; bbrantly@usfamily.com; gmamoroso@ISD194.K12.MN.US; lmswanson@ISD194.K12.MN.US Cc: Erickson, Robert; Olson, David L; Jack Matasosky Subject: Thank you Thank you for taking the time to attend the Himle Horner presentation on Communication Strategies for Economic Development on Wednesday, July 2. It would be extremely beneficial to get feedback on the presentation regarding the proposed communication strategy and our plans for implementation. Please contact. me at (952) 985-4425 or email me at aalfson@ci.lakeville.mn.us with any feedback you would like to provide. All input is greatly appreciated. Thank you, Amanda Alfson Economic Development Coordinator City of Lakeville (952) 985-4425 1 Alfson, Amanda From: Gary M. Amoroso [gmamoroso@isd194.k12.mn.us] Sent: Tuesday, July 08, 2003 8:55 AM To: Alfson, Amanda Hi Amanda: Thanks for the invitatoion to attend the session. I enjoyed it. I sincerely hope that the City and Schoool District will continue to work closely together. It benefits both of us. Have a great day! Gary M. Amoroso Gary M. Amoroso Superintendent of Schools Lakeville Area Public Schools 8670 210th St. W. Lakeville, MN 55044 952-469-7117 [This E-mail scanned for viruses by Declude Virus] 1 Alfson, Amanda From: Michaud, Steve Sent: Tuesday, July 08, 2003 8:42 AM To: Alfson, Amanda The meeting was well done. If possible I would like to see a written plan of action. Does one exist ? Steve 1 Alfson, Amanda From: Erickson, Robert Sent: Tuesday, July 08, 2003 8:32 AM To: Alfson, Amanda Subject: RE: Thank you Future presentations could benefit from the use of a podium. The power point format was excellent. Thanks for arranging the meeting. -----Original Message----- From: Alfson, Amanda Sent: Tuesday, July 08, 2003 8:28 AM To: Michaud, Steve; Nelson, Keith; Martens, David; Tom Smith (E-mail); Palm, Susanna; Guenther, Lea; Visnovec, Brenda; Zarras, Ginny; Todd Bornhauser (E-mail); Vogt, Chris; Schiffman, James; Lueders, Jeff; Jeannie Schubert (E-mail); Volk, Don; Feller, Dennis; 'jeanneC~visitlakeville.org'; 'bbrantlyC~ usfamily.com'; 'gmamoroso @ ISD194.K12.MN.US'; 'Imswanson C ISD194.K12.MN.US' Cc: Erickson, Robert; Olson, David L; Jack Matasosky (E-mail) Subject: Thank you Thank you for taking the time to attend the Himle Horner presentation on Communication Strategies for Economic Development on Wednesday, July 2. It would be extremely beneficial to get feedback on the presentation regarding the proposed communication strategy and our plans for implementation. Please contact me at (952) 985- 4425 or email me at aalfsonCci.lakeville.mn.us with any feedback you would like to provide. All input is greatly appreciated. Thank you, Amanda Alfson Economic Development Coordinator City of Lakeville (952) 985-4425 1 MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FR: Amanda Alfson, Economic Development Coordinator DATE: August 28, 2003 RE: City of Lakeville 2004 Budget "Back to the Basics" Please find enclosed the City of Lakeville 2004 Budget Message entitled "Back to the Basics" that was discussed at the August 26, 2003 EDC meeting. Hope everyone has a safe and enjoyable holiday weekend. t August 21, 2003 Honorable Mayor and Members of the City Council "Back to the Basics" The Governor and 2003. Legislature, in their endeavors to address the State of Minnesota's $4 billion budget crisis, imposed severe fiscal constraints on cities,. which requires the City Council and department. directors to pare back the level of services .provided. State cuts, .including Local Government Aid. (LGA) .and .Market .Value Homestead Credit (HVHC), which historically provided for property tax relief, were reduced: dramatically for 2003 and 2004. Lakeville lost all of its LGA ($499,158) and most of its MVHC ($656,230) in both years.The Legislature authorized cities to levy up to 60% of the state aid Loss (Lakeville can levy back $693,233); however, in the process, the ability to levy for residential, commercial- . industrial. growth.. and inflation factors was :eliminated. This is especially punitive for :high growth, cities such as Lakeville. As a result, Lakeville's tax levy authority for operations was greatly. reduced -perhaps permanently. In reaction to the 2003 revenue losses, the General Fund budget appropriations were reduced by $513,249. Budget adjustments included the elimination of new employee positions, out- of-state travel, contractual snowplowing, contractual tree trimming, acquisition of technology equipment, fleet equipment replacement and other line. item adjustrnents. The budget adjustments, combined with the use of 2002 fund balance carried forwazd, enabled the City to maintain a sound fiscal position-for 2003. This was made possible in large part by the staff underspending .their .General Fund budgets in nine of the last ten years. The 2004 budget, however, required policy changes relating to revenue enhancements and expenditure reductions. The Liquor Fund profits have historically been appropriated for construction and improvements of public facilities. For the first time in many decades, Liquor Fund profits will be transferred to the General Fund to finance operations. Long-term appropriation of Liquor Fund profits to operations rather than capital project improvements will significantly City of Lakeville 20195 Holyoke Avenue • Lakeville, MN 55044 Phone (952) 985-4400 • FAX (952) 985-4499 • wwwlakeville.mn.us impact the City's ability to construct and maintain its facilities (e.g. new Public Works Maintenance facility) without future tax increases. In addition, Lakeville will, for the first time in its history, appropriate Cable TV franchise fees to finance the Public Communication program, which had previously been financed from the General Fund. Lakeville is the only Dakota County city, which has accounted for Cable TV franchise fees ($147,204) in a Special Revenue Fund rather than the General Fund. With the exception of the Electrical Inspector position (which is totally funded with electrical permit revenues) there are no new full-time positions in the proposed budget. This will indeed be a challenge when taking into consideration the fact that residents have .given Lakeville's police and fire services one of the highest ratings in the metropolitan area and have an expectation that the same level of service will continue to be provided in spite of 1,700-2,000 new residents each year. Residents have also given exceptionally high. marks to the Street Department based on the quality of its snowplowing and pavement management program; with the addition of approximately eight new miles of streets annually, continuing the same quality of service will be challenging. In addition, the proposed budget includes elimination of programs that have been considered by many as a part of the quality of life of this community. Services eliminated include DARE, lifeguards at all three of Lakeville's beaches, warming house attendants at the outdoor skating rinks, night attendants for the meeting room at the Water Treatment Facility, and the 4th of July fireworks: The proposed 2004 budget establishes a funding level for providing "back to the basics" services in what has become a new paradigm for the level of local government services. Lakeville has always prided itself on a lean budget, therefore reductions are extremely difficult.. It's a significant challenge to maintain. current service levels for our growing population and our business community while facing dramatic reductions in state aids and levy limit authority COMMUNITY INITIATIVES -ECONOMIC CONDITION The Lakeville City Council created a Strategic Growth Management Task Force in`1992. Its goal was to develop strategies regarding the rate, location and types of development that would generate fiscal stability while preserving and enhancing the City's quality of life and services. The City Council reconvened the Strategic Growth Task Force in 1998 for the purpose of making both short and long term recommendations or suggestions on strategies relating to 2 4 how the rate, location and type of residential and commerciaUindustrial growth can generate fiscal stability and preserve or enhance the quality of services while minimizing any adverse impacts on City systems and taxpayers. The 1998 Task Force concluded that the residential growth controls recommended by the 1992 Task Force and .implemented by the City Council were successful. Specific recommendations included supporting current strategic directions and developing new initiatives for business development. In addition, the Task Force recommended guiding the amount, type, location and quality of residential development; guiding future development in the central area; and protecting natural resources and environmental quality while accommodating growth, facilitating intergovernmental collaboration and maintaining the City's management capacity. Residents indicated in the 2001 community survey that the zoning and land use decision-making process was deemed adequate in providing for residential input. The City of Lakeville currently has a moratorium on the approval of plats for residential developments in the RST-2, RM-1, RM-2, RH-1 and RH-2 zoning district or for medium, medium/high, and high density residential developments as designated on the 2020 Land Use Plan. This moratorium, which is necessary to allow the Planning Commission to complete its comprehensive review and update of the City's Zoning Ordinance pertaining to the performance standards for multiple family residential dwellings, will remain in effect until new official controls are adopted and no later than December 15, 2003. Single-family developments, affordable housing, senior housing and manufactured home park developments are exempt from this moratorium. The moratorium is allowing the City time to complete various planning and engineering studies and adopt appropriate land use controls. In-depth studies include a comprehensive review and update of the City's Zoning Ordinance, a review of growth management practices and a review and update of the City's comprehensive sanitary sewer and water plans. The City of Lakeville has also adopted a moratorium that prohibits certain development and new construction in the commercial area east of the Interstate 35/County Road 50 interchange to allow the City time to study, design and officially map future road alignments. New alignments are necessary to address long-standing traffic congestion and safety concerns in the area. The ordinance will be in effect until the adoption of official .maps and other official controls, no later than April 14, 2004. Even though mortgage rates have begun to increase from their June 2003 lows, they still remain relatively favorable. It is our expectation that the favorable mortgage rate environment and Lakeville's quality of life will continue to fuel the residential housing construction sector. The community offers safe and secure neighborhoods; high quality educational system; outstanding parks, open spaces and trails; and offers other appealing natural amenities. 3 Residential building permit activity is projected to hit a historic high of 400 single-family residential units and 400 townhome units in 2003. Single family and townhome residential unit building permits are anticipated to be 340 and 370, respectively, in 2004. - s r _ ~ _ ~ ~ - - ' CLifl Y .a. ~ - ~ ~ - - . s . y~~ _ _ ~ 300 _ _ _ _ _ _ - ~ 2511 _ _ _ _ - _ _ _ _ _ - 20'0 _ - - .i _ _ _ ~ Siegie F:mitt' 150 i 00 , f"NTnt1i-FAxuii~ ' 50 0- 2013(1 ~OO1 2002 2ao3 2004 20t! The Lakeville City Council approved the 2002-2004 Strategic Plan for Economic Development based on the recommendation of the Economic Development Commission. A high priority of the plan is to inform and educate residents on the benefits of having a strong. commerciaUindustrial tax base. The plan also establishes methods of attracting businesses and alternative ways of providing incentives. Commercial and industrial growth continues, with the following businesses choosing to locate in Lakeville during the past two years: Business Valuation 2002 C.H. Carpenter Lumber $ 2,784,000 Boise Cascade 2,480,000 Provincial Bank 1,328,000 Lakeville Family Dental Centre 1,314,000 Lakeville. Premier Storage 915,000 Dicks Sanitation 680,000 Southfork Animal Hospital 630,000 Pahl's Insurance 315,000 4 Business Valuation 2003 Cub Foods $ 3,390,000 Crossroads 2,795,000 Gander Mountain 2,431,000 Citizens Bank 2,392,000 Advanced Wireless 1,529,000 Heritage Commons Phase 2 1,250,000 Lakeville Town Office Park 1,150,000 Holiday Station 850,000 Hebert and Associates 800,000 Applebees Neighborhood Grill 650,000 Select Car Wash 450,000 JTW Associates 409,000 In addition, the following commercial/industrial expansion projects have been undertaken in the past two years: Business Valuation 2002 Wasau Supply Company $ 2,341,000 Geckler 1,448,000 Twin City Harley Davidson 800,000 Hobo Inc. 330,000 Midstate Trucking 155,000 2003 Jeff Belzers Chev Dodge 3,400,000 R & L Carriers 500,000 Tyco Plastics 200,000 It is our opinion that Lakeville's projected 4% annual growth is due to its strategic location within the Twin Cities metropolitan area; an excellent transportation system; quality of life, safe and secure neighborhoods and a diverse commerciaUindustrialhase. Lakeville's growth strategies and a decade of strong economic conditions have resulted in a favorable increase in existing and new construction market values. The tax base for payable 2004 grew by $2,267,528 (6.4%) due to new construction as shown below: 5 Tax % of Market Capacity Total Value Value Growth Residential $ 164,403,800 $ 1,647,945 72.7% CommerciaUindustrial 31,000,500 619,583 27.3% Total $ 195,404,300 $ 2,267,528 100.0% Commercial and industrial properties are an important part (18%) of Lakeville's tax base. It represents more than $380 million of market value to the community. Tax Market Capacity % of Property Class Value Value Total Residential 3,246,451,600 32,635,773 79.1% Commercial/IndustriaUutility 380,326,500 7,349,644 17.8% Apartments 71,281,000 891,019 2.2% Agricultural 39,492,400 367,156 0.9% Other 639,100 6,391 0.0% Total $ 3,738,190,600 $ 41,249,983 100.0% The City Council, Planning Commission and Economic Development Commission have identified the need for improvements to the I-35 Interchanges at County Roads 50, 60 and 70 as key elements to Lakeville's continued economic growth. Upgrades will allow better access and improve traffic flow and safety. The projects will also add significantly to the economic vitality of our community. Approximately $30 million of new commercial construction will have occurred in the County Road 50 interchange area in a twenty-four month period. To help ensure that these crucial interchange improvement projects proceed in a timely manner, the "Interchange Financing Report dated November 2002" was prepared to identify the estimated costs and proposed financing for the coming years. The General Obligation Street Reconstruction Bonds Series 2003 A ($14.88 million) were issued to finance the 2002 - 2004 Improvements. The debt is repaid with property tax levy over atwenty-three-year period. s PROPOSED 2004-2005 BUDGET The City operating plan grants the City Council full authority over financial affairs of the City. The City Administrator is charged with the responsibility of preparing the proposed annual budget and enforcement of the provisions of the adopted budget as specified in the budget resolution. Following the Truth in Taxation hearing process and upon City Council adoption of the budget and tax levy in December, the budget provides formal appropriations for City operations. The City Administrator is authorized to expend funds in excess of the appropriations for individual line items as long as the department's expenditures remain within the total department appropriation approved by the City Council. The budget may be amended by the City Council from time to time, as deemed necessary. The following is a summation of the significant elements in the 2003-2004 proposed budgets. GENERAL FUND The General Fund accounts for all revenues and expenditures necessary to provide a full range of services including general government administration, community and economic development, public safety, public works and parks and recreation. The major sources of revenue are as follows: 2044 GE~ERAi. FUND RE'VE1ES TQTAL $I~i,124,~55 cxherrr~ (~~a} x1,~,~t G6~r~ for Services Taxes (6t %a7 (I0°/v} X1,581,387 $4,&77.728 Litergpver~a~eatal. (~4°h) ~~,a45 Licenses &,PermJte 7 Taxes The Legislature imposed extremely restrictive levy limitations and eliminated $1,155,388 of state aid revenues. Cities may levy to replace 60% of the aid lost from LGA and MVHC. In spite of its increased levy authority ($693,234), the City of Lakeville will have approximately $619,000 less revenue for operations in 2004 than it had in the previous year as shown below: 2003 2004 Tax Levy Adjusted levy limit base $ 9,754,611 9,754,611 60% of state aid losses 693,233 Less: TIF adjustment (632) (4,372) Matching grants levy 187,379 34,186 PERA levy 21,655 21,740 Total tax levy $ 9,963,013 $ 10,499,398 State aid MVHC. loss (656,230) LGA - 2003 499,158 - Total revenue -taxes and state-aids $ 10,462,171 $ 9,843,168 The 2004 levy limits excluded the levy growth adjustments for inflation, household growth and commerciaUindustrial growth, which had been allowed in the previous three decades. The loss of the growth and inflation factor in the levy limit calculations has a profound impact on the City's ability to provide adequate financial resources to our growing community. Gravel tax revenues are anticipated to increase in the coming year as a result of mining activities located north of 170t'' Street, east of Pilot Knob. Licenses License revenues are anticipated to increase from $66,290 in 2003 to $81,615 in 2004, primarily as a result of issuing additional on-sale liquor licenses. Permits Building permit revenues are projected to hit a historic high of 400 single-family residential units and 400 townhome units in 2003. Single family and townhome residential unit building 8 permits are anticipated to be 340 and 370, respectively, in 2004. CommerciaUindustrial building permits are anticipated to continue at record-breaking paces in the coming year with continued development at Timbercrest, Crossroads, Lakeville Crossing, Heritage Square and the Highway 50/I-35 interchange. The 2004 permit revenues include an anticipated $1.20,000 resulting from the issuance of electrical permits. Projected building permit related revenues are as follows: 2001 2002 2003 2004 Actual Actual Estimate Estimate Plan review fees $ 664,094 $ 767,627 $ 959,323 $ 722,025 Building 1,129,668 1,313,142 1,576,971 1,206,653 Plumbing 89,448 100,934 100,412 92,277 Water/sewer 50,741 51,407 54,678 63,973 Mechanical 86,654 113,413 105,335 90,165 Grading/Filling 300 600 400 900 Driveway 950 375 750 750 Zoning - 6,510 6,200 6,200 Electrical - - - 120,000 Total $ 2,021,855 $ 2,354,008 $ 2,804,069 $ 2,302,943 The 2001 Legislature approved a law requiring cities to submit an annual report regarding municipal development and construction fees and costs associated with services related to these activities. This report, which requires cities to provide the cost of these services, indicates that Lakeville's building permit fees are adequate in covering the cost of inspection services. However, planning and engineering fees appear to fall short of related expenditures. The first report was submitted prior to the June 30, 2003 reporting deadline. Intergovernmental Revenue The proposed budget does not anticipate any Local Government Aid ($499,096) in 2003 or future years. The City receives state aid for police and fire relief in the amount of approximately $238,760 and $194,250, respectively. Funding for the police state aid is provided .from the State General Fund. Fire relief state aid is provided from the 2% fee on property and casualty insurance premiums. The General Fund also receives state aid for pensions (PERA) in the amount of $21,303. The City receives $14,050 of state aid as a result of assigning one investigator to the South Metro Drug Task Force. It is also anticipated the City will receive approximately $2,400 for the acquisition of Police Department protective vests. A Safe and Sober grant in the amount 9 of $5,500 is also anticipated in the coming year. Final receipt of the Federal COPS (SRO) Grant ($17,300) will be in 2004. Charges for Services -General Government The City collects fees for a variety of general government services including planning fees. The City collects escrow funds from builders to insure compliance with relevant sections of the subdivision ordinance; the City retains the interest on investments from such escrows ($10,600) in order to offset the cost of administering the program. The general fund receives investment management fees ($22,943) for the Finance Department's endeavors in managing the City's portfolio. The proposed budget takes into consideration the second year of an agreement with the City of Farmington related to cost sharing of the Information Systems Technician. Charges for Services -Public Safety ISD 194 has agreed to reimburse the City for 100% (previously was 50%) of the costs for two School Resource. Officers ($111,950) so that program will continue. However, the DARE program for fifth graders has been eliminated. As a result of donations, K-9 activities will be enhanced at the Senior High School to increase drug enforcement activities. In 1998, the Legislature enacted the impaired driver and forfeiture law intended to confiscate vehicles driven by persons under the influence of alcohol. Approximately $12,000 is anticipated to be received each year from the sale of forfeited vehicles. The revenues will offset the City's cost incurred for towing, storage and prosecution. The City of Farmington continues to pay a prorata share of public safety dispatching cost. Its 2004 reimbursement will be approximately $151,883. There are no proposed changes in animal pickup, storage, licenses or vaccination fees for the coming year. ALF Ambulance will reimburse the City approximately $59,819 in 2004 for administrative and facility costs incurred as a result of housing a paramedic crew at Fire Station No. 4. The City of Lakeville will also receive approximately $26,371 from Eureka Township as a result of the Fire Services Agreement. Charges for Services -Public Works The Engineering Department will generate revenues ($417,515) related to project design, inspection and administration. 10 Dakota Electric has announced a 19% increase in street light rates for the coming year; Excel Energy has stated it will not be increasing its rates. Because 70% of streetlights are served by DEA, the proposed budget anticipates City Council approval of a 14% increase in street light rates to Lakeville customers. The street light rate for residential customers would increase to $5.75/quarter (currently $5.05/quarter). The City Council may wish to allocate the rate increase over atwo-year period. ' Charges for Services -Park and Recreation Charges for services related to the Parks and Recreation Department will total approximately. $148,561 in 2004, which is a 4.7% increase when compared to 2003. The increased revenues are due to fee adjustments and an increased number of enrollees, especially for programs such as golf and tennis. Art Center program and facility rental fees were recently increased and are proposed to increase again on January 1 to offset, at least in part, the cost of operating the facility. Arts Center revenues are anticipated to be approximately $72,206 in 2004. Miscellaneous Revenue Interest on investments is estimated to be approximately $180,908 in 2004. Intermediate and long-term interest rates were at historic lows in June 2003, but are rising; short-term rates continue to remain at historic low levels. The City will also receive approximately $57,615 in 2004 for antenna rental on the Dakota Heights water tower. Interfund Transfers Interfund transfers are made from the Utility, Liquor, Cable TV, GIS, Surface Water Management, E-911 and Municipal Reserves Fund to reimburse the General Fund ($359,742) for their fair share of administrative costs. As a result of the reduction in state aids and severe levy limits, transfers from the Liquor Fund are proposed to be $711,468 in 2004. The Cable TV Fund will finance Public Communications functions ($143,659) with interfund transfers commencing in 2004. 11 GENERAL FUND -EXPENDITURES Personnel costs account for approximately 70% of the proposed General Fund budget. In 2003, Lakeville will have 3.2 employees per thousand population, which ranks among the lowest in the state. Of the City's major functions, Public Safety has the most employees. According to the Office of State Auditor, Lakeville's per capita expenditures are. less than those of other Minnesota cities. e ~ _ w___._.__._ e ~ ~ ~ ]so` ¦ State Average i 60 ` ¦ City of Lakeville - a 1411 -j a l U 120 c 100 ` ~ i ~ SQ 3 K Gti 60 4 40 - g ?o C,eneral PubtiC Safety. Public Works Park.4 by €llrtier Governmen4 Recreation Mayor and Council The Association of Metropolitan Municipalities dues are deleted from the 2004 budget. The budget does provide for League of Minnesota Cities and I-35 Alliance dues. The budget also provides professional service appropriations ($20,000) relating to the City Administrator recruitment process. Miscellaneous expenses remain at $1,150 for each Council Member. There are no appropriations for national conferences. Public Communications The proposed budget takes into consideration the retirement of the Public Information Coordinator in April of 2004 and the transition of the Public Information Specialist at that time. The cost of Messages will increase approximately $2,140. The budget also provides for 12 new Council Member photographs in December of 2004. The Resident Guidebook is anticipated to be reprinted in 2005; the proposed budget anticipates the sale of advertising funding 100% of the cost of printing. The entire cost of the Public Communications budget will be financed with a transfer from the Cable TV Fund. City Administrator The proposed budget provides appropriations for a new City Administrator in 2004. City Clerk The City Clerk budget for 2004 will increase ($41,964) due to national and local elections. The elections program includes appropriations for election judges, six additional voting booths and one additional optical scan vote tabulator. Legal Services The proposed budget provides fora 2% increase in hourly rates for 2004. Prosecutorial costs will not increase in the coming year as a result of the check diversion program. Committees and Commissions The proposed budget includes appropriations for a Historical Society Liaison (6 hours /month). City support for Pan-O-Prog activities is being adjusted or reduced in the following areas. • Liquor Fund sponsorship of fireworks ($13,000) is proposed to be eliminated. The community would therefore need to provide donations or sponsorships in order to finance the event. Police Department and Street Department overtime for traffic control is proposed to be reduced by 16 and 43 hours respectively. • Reduce City overtime for police coverage at Pan-O-Prog Beer Brats and Bingo by 11 hours. • Eliminate approximately 16.5 hours of Street Department overtime for traffic control during Cruise Night. • Eliminate approximately 24 hours of Street Department overtime on Sunday for parade activities. • Reduce Saturday Street Department overtime by approximately four hours for Saturday cleanup after Cruise Night. • Babe's Restaurant would be 100% responsible for all Police overtime on Saturday night, thereby generating an additional $1,600 of revenue. 13 Community and Economic Development The proposed budget provides professional service appropriations ($9,000) for planning services relating to special studies. The budget also provides for employee customer service training. Inspections A Senior Electrical Inspector is included in the 2004 budget. The electrical permit fees are estimated to be approximately $120,000 per year, which will fund the new position and provide additional revenue. General Government Buildings Natural gas heating costs are anticipated to increase 35% per year due to high nationwide demand and diminishing supplies. Electrical costs for government buildings served by D.E.A. will increase by approximately 7% in the coming year. The Water Treatment Facility attendant positions are proposed to be eliminated for the coming year. Capital outlay for City Hall includes replacement of a fax machine and color printer. Finance The cost of auditing services is anticipated to increase (approximately $17,000) due to Governmental Accounting and Standards Board (GASB) 34 implementation and the Statement on Auditing Standards (SAS) 99 audit rules. The overall objective of GASB 34 is to make annual financial reports more comprehensive and easier to understand and use. The important features of GASB 34 include entity-wide financial reporting, additional long-term focus for activities, information on major funds, budgetary reporting and a narrative overview and analysis. The SAS 99 establishes standards and provides guidance to auditors, which are designed to increase the likelihood of auditors detecting material misstatements due to fraud. Both GASB 34 and SAS 99 will increase the time and hence the cost of audit services. The City will be soliciting audit proposals in fa112003. In formation. Systems The Technology Evaluation Needs and Analysis (TENA) provides a foundation for the acquisition and replacement of the City's hardware and software systems and maintenance agreements. Costs for IS support are allocated to the respective benefited funds. Lakeville has been a member of LOGIS for more than two decades. The overall cost of LOGIS services will not increase for the coming year. LOGIS provides computer support for the City's financial, utility billing, payroll, police, inspections, special assessments and Internet systems. 14 The Information Systems budget also provides financing of employee training in various computer technology applications. Appropriations are also provided for a security audit to preserve and protect the City's critical information systems. The City of Farmington will continue to reimburse the City of Lakeville for its share (approximately 40%) of the Information Systems Technician position. Human Resources The Human Resources Department accounts for the Human Resources Director, .Employee Relations Coordinator and apart-time. (24 hour/wk) secretarial position. The budget also provides appropriations for the biennial market study ($18,000) in 2004. Insurance The Municipal Reserve Fund accounts for the City's general liability, excess liability, property and casualty insurance. Transfers are made from the insurance program to the Municipal Reserve Fund for the General Fund's share of costs. Costs remain favorable as a result of the City's prudent risk management and claims experience. Police Department ISD 194 has agreed to finance 100% (previously 50%) of the two School Resource Officer (SRO) positions and will cease to fund the DARE program at all ISD 194 and ISD 196 schools. Drug enforcement activities will be enhanced through the use of the K-9 Officer at the Senior High Schools as a result of donations. The Police Department has recently received a Safe and Sober grant to continue its DWI enforcement campaign in the coming year. Prosecutorial costs will not increase in the coming year as a result of the check diversion program. The Police Department is currently implementing the LOGIS Printrak police reporting, dispatching and mobile data computer systems, which is anticipated to be completed by the first quarter of 2004. The City of Lakeville is one of the very first LOGIS cities to implement the new system. The Police Department is also endeavoring to implement a computerized citation system, which will integrate with the Dakota County Court systems. Implementation of the system will significantly improve traffic enforcement activities. The proposed budget includes one new part-time secretary/receptionist position effective May 2004. A new battery backup civil defense siren is proposed to replace the existing siren at Ardmor Mobile Home Park. The new siren will provide adequate volume to serve the residents of the Village Creek and Spyglass subdivisions and increase coverage for the Airlake Industrial Park. The siren currently located at the Ardmor Mobile Home Park will be relocated to Brackett's Park to serve the residents in and around the Brackett's/Prairie Lake area. 15 The following equipment acquisitions are proposed to be financed from the Certificate of Indebtedness Equipment Fund. 6 Squad cars + conversion $ 120,185 2 Squad partitions 803 1 Investigator v+Blan + conversion 21,789 1 Suburban replacement + conversion 30,887 1 SRO squad conversion 1,097 5 Lightbar lenses 799 3 AED units 5,121 14 Computers 68,185 ModCom upgrade 6,900 16 Auto Cite 10,277 2 Stinger spikes 1,016 1 AR15 Sim Barrel 784 1 Glock training 1,027 3 Carbines/Equipment 2,125 1 Digital recorder 439 Civil defense sirens 23,260 Total $ 294,694 Fire Department The proposed Fire Department budget provides funding for the replacement of the part-time Fire Chief position with afull-time Fire Chief in the coming year. Fire Relief pensions are proposed to increase from $5,300/year to $5,400/year of service effective January 1, 2004; the benefit level change in 2004 will impact the tax levy in 2005 and beyond. Pay for Call and Pay for Training are proposed to increase by $.25/hour (from the current $6.00/hour to the proposed $6.25/hour) in 2004. All firefighters will be required to take a physical in 2004 as a result of the biennial physical requirement. The Fire Inspector charges 50% of its time to the Inspections Department as a result of building permit-related activities. The Fire Department budget also provides for contractual plan review of commercial fire system plans. A FEMA grant ($41,400) has been received for acquisition of the Smoke Trailer and desktop Fire Prevention Unit. Minnegasco has also provided a $2,500 grant for the rescue system budgeted in 2005. The proposed Certificate of Indebtedness Equipment Fund budget provides for the following 2004 Fire Department vehicles and equipment acquisitions: 16 All Stations Improve fire radio talk-in coverage $ 48,270 Modify Dakota Heights connectivity 31,635 Fire hose (replacement) 10,200 Heat management portable cooling system - 2 each 1,777 Computer 1,734 Remote inspection module for Firehouse 632 Pocket PC for use with Firehouse 639. Smoke Trailer & Desktop Fire Prevention unit (FEMA Grant) 46,000 Station #1 Holmatro hydraulic spreaders, cutters and power plant (reply 24,185 Foam pump system - 4884 9,700 Station #2 Emergency power generator 15,000 Rescue pumper (replace #85, net of trade in) 250,000 Station #3 Emergency power generator 15,000 Foam pump system - 4886 6,800 Station #4 Physical fitness equipment 8,000 Total $ 469,572 ALF Ambulance ALF Ambulance currently operates two 24-hour-a-day ambulances; one of which is located at Fire Station No. 4 as well as a 10-hour rig is stationed at Farmington. ALF subsidy remains at $.50/capita ($22,829) for 2004. The City of Lakeville receives an administrative fee from ALF in the amount of $59,819. Engineering The Engineering Department is responsible for the overall design of City construction projects, construction inspection, and infrastructure analysis as it relates to new developments, geographic information system and environmental resources functions. Capital outlay acquisitions for the coming year include GPS survey equipment ($45,390) and a rotary filing system ($33,015). 17 Streets The City provides maintenance on 224 miles of streets with approximately 6-8 miles added each year as a result of new development. The Street Department is staffed with 16 maintenance positions. Dakota Electric Association (D.E.A.) has announced it is increasing street lighting costs by 19% in 2004; Excel Energy has stated it does not intend to raise rates. Since D.E.A. comprises over 70% of the overall total street lighting costs, the street light fee to Lakeville .customers is proposed to increase by 14% to a proposed $5.75/quarter (from the current $5.05/quarter). The City Council may wish to consider implementing the street light fee increase over atwo-year period. The cost of dust control continues to decline annually with the paving of gravel roads such as Hamburg Avenue from Highway 50 to 202"d Street. Consistent with the 2003 budget adjustments, there will be no contractual tree trimming in 2004. Ditch mowing activities also will be greatly reduced in the coming year. The 2004 seal coating program includes the area north of Dodd Boulevard between Highview and Ipava Avenue and north of 165th Street between Highview and the Interstate. Crack sealing includes the area. north of Dodd Boulevard between Cedar and Highview Avenue. The total estimated cost of 2004 pavement management activities (approximately $428,142) is included in the proposed General Fund Street Department budget. Overlays are financed from the 2003 Street Reconstruction Bond proceeds and are therefore not subject to levy limits. The proposed Street Department budget for 2004 vehicle and equipment acquisitions will be financed from the Certificate of Indebtedness equipment fund as follows: Extendable pole saw $ 634 Mobile storage cabinet 1,342 Sander augers 1,757 Computer 1,734 Sander ground speed control boxes 3,195 Directional plow for Skid Steer 3,610 1-ton truck with plow 42,456 Dump trucks with plows 154,566 Sterling cab & chassis 43,611 Total $ 252,905 18 The proposed 2003 Building Fund budget provides appropriations ($456,600) for the architectural design and engineering of the new Public Works Maintenance Facility. Construction of the facility is anticipated in 2005. Parks The City maintains 70 parks with 57 ball fields, 39 soccer fields, 27 outdoor ice rinks, 33 playgrounds, 15 public buildings and 72 miles of trails. The proposed budget takes into consideration the elimination of lifeguard positions at all three beaches in 2004. Proper signage as recommended by the League of Minnesota Cities risk manager will be posted at all locations. In addition, all warming house attendant positions are being eliminated; electric timers are being installed at all rinks to provide for rink lighting. An increase in contract mowing of park facilities is anticipated in 2004. Major maintenance projects include seal coating approximately 15 miles of trails. The proposed Park Department vehicle and equipment acquisitions will be financed from the Certificates of Indebtedness Equipment Fund 2004 budget as follows: Flatbed trailer replacement $ 6,867 Chainsaw replacment 443 3/4 ton 4x4 pickup w/plow 26,359 1 ton dump truck (repl #3004) 44,794 Hedge trimmer with extended reach 399 Computer replacement 1,734 Sterling cab & chassis 5,158 2100 gallon street flusher 49,842 Dressen trailer (replacement) 3,700 Puppet wagon (replacement) 4,200 Weed trimmers (2) 800 Total $ 144,296 Recreation The Recreation Department offers a variety of exciting activities each year with approximately 6,500 youth and 2,500 adults participating. The Recreation Department has experienced a significant increase in summer programs as a result of mailing the 2003 summer brochure. The Recreation Department anticipates that mailing of the brochure will continue to maximize readership by the desired target audience. Recreation revenues are anticipated to increase as a result of adjusting fees and increased participation. 19 All nature programs are being discontinued at the Ritter Park Environmental Learning Center (ELC) due to lack of participation. The ELC building will be winterized and the heat shut off to reduce costs. In addition, electrical costs will be reduced and the telephone disconnected at the facility. The Lakeville Senior Citizen Club is anticipated to finance the cost of Senior Center entertainment ($1,200) and replacement of eight guest chairs. A new furnace and air conditioner is proposed to be purchased and ductwork cleaned in 2004; the interior of the Senior Center is proposed to be painted the following year with financing provided from the Building Fund. Lakeville Area Arts Center The Lakeville Area Arts Center has provided theatrical events for approximately 16,000 patrons and over 700 (youth and adult) students of visual arts. The proposed budget provides funding for one full-time coordinator, afull-time secretary/receptionist and two part-time facility attendants. The budget provides appropriations for annual maintenance agreements related to lighting truss and seating risers. Fees are proposed to increase effective January 1 to offset operational costs. Fund Balance It is important that the City maintain adequate fund balances in order to insure adequate reserves for cash flows and minimize potential adverse impacts due to future budget cuts. Bond rating firms, such as Moody's, take a city's fund balance into account when giving a city a rating. Depleting reserves could endanger the City's bond rating, making future borrowing more expensive for taxpayers. The designated fund balance represents the amount required to operate during the first six months of the year. The City's most significant revenues sources-taxes and intergovernmental revenues-do not provide appreciable revenue until the second half of the year. The 2003/2004 fund balance as of December 31 is projected as follows: 2003 2004 Fund balance $ 7,700,858 $ 7,347,657 Operating expenditures $ 15,411,282 $ 16,427,956 Percent of expenditures 50.0% 44.7% Despite the decline, the proposed year end fund balance is adequate and sufficient to support operations. 20 SPECIAL REVENUE FUNDS Special Revenue Funds are. used to account for the proceeds from specific revenue sources that are legally restricted to expenditures of specific purposes. Establishment of such funds also enables the City to more effectively manage its resources and minimize tax levies. Collectively the funds have accumulated an estimated fund balance of $809,784 since their initial creation. The 2004 year-end estimated fund balances are as follows: Cable TV $ 188,312 Environmental and Recycling 9,644 Employee Benefit 190,913 G.LS. 60,154 Surface Water Management Utility 317,999 Oak Wilt Suppression Grant 2,428 Enhanced 911 - Economic Development Revolving Loan 40,334 $ 809,784 The Cable TV Fund accounts for franchise fees from cable television operations. The expenditures are used to finance Cable TV Channel 16 (i.e., live cable-casting of City Council meetings, the LPD Journal, Lakeville City Limits, Lakeville Messages, Lakeville Kids and Government, Focus on Lakeville and other special programming) operations. The proposed 2004 budget also will provide a transfer to the General Fund to finance the entire cost ($147,204) of the Public Communications budget. The Cable TV Fund also finances the cost of updating the web site content and related software upgrades. The Cable TV fund will also reimburse the General Fund for its fair share of administrative costs. The proposed budget appropriations include continued legislative lobbying regarding local efforts to control right-of--ways. The Environmental Recycling Fund accounts for grants received from Dakota County and applied toward Citywide recycling efforts. The proposed budget provides for an annual Citywide cleanup day. Collections of household hazardous waste and electronics are held on an annual basis; the collection of household appliances is proposed on a biennial schedule with the next collection planned for the coming year. The budget also provides for advertising solid waste abatement programs on the Messages page. The Employee Benefit Fund accounts for expenditures for governmental employee benefits attributable to severance pay. 21 The Geographic Information System (GIS) Fund accounts for revenues collected as new lots/parcels of record are created. Appropriations are made for the development and maintenance of a computerized geographic information system. The proposed 2004 budget provides appropriations for the acquisition of a "pole" file system to replace tub files and flat files for the storage of maps. The pole system will greatly reduce the storage requirements for City maps and as-builts. The GIS fee was recently increased to $75/parcel to reflect the actual cost of inputting as-built data. The Surface Water Management Utility Fund was created to meet the community's need for managing surface water resources. Transfers are made to reimburse the General Fund for street sweeping, Information Systems Department support and its fair share of administrative costs. Transfers are also made to the Sanitary Sewer Fund for personnel costs incurred as a result of the sump-cleaning program. The Fund also provides City support to the Black Dog Water Management Organization. Adequate appropriations are provided for water management activities as shown below: Orchard Lake management activities $20,200 Orchard Lake curly leaf pond weed control 25,000 Lake Marion Eurasian water milfoil program 11,000 Valley Lake management plan and treatment 7,500 Lee Lake management plan 10,500 Lee Lake curly leaf pond weed control 8,000 South Creek monitoring and channel restoration 22,500 Water quality maintenance -pond cleaning 50,000 Citizen-Assisted Water Quality Monitoring (ECAMP) 1,650 Crystal Lake Golf native prairie restoration 1,500. Pond mowing 9,262 Adopt-a-Pond Program 5,000 The Oak Wilt Suppression Grant Fund was created to account for grants received from the Minnesota Department of Natural Resources. The grant proceeds will reimburse Lakeville residents for 50% of their disbursements for oak wilt suppression. The Enhanced 911 Fund accounts for revenues collected with telephone bills (remitted by the State to the City of Lakeville) to be used for fund acquisition and maintenance costs associated with an E-911 system. The revenues ($33,135) will be transferred to the General Fund. The Economic Development Revolving Loan Fund was created to account fora $125,000 Economic Recovery Grant received from the State of Minnesota Department of Trade and Economic Development (DYED) in 1995. The Fund was created to account for loans to businesses that are either expanding or building within the City of Lakeville. 22 INTERNAL SERVICE FUND The Municipal Reserves Fund accounts for the City's general liability, excess liability and property and casualty insurance costs. The City's primary insurance carrier is the League of Minnesota Cities Insurance Trust (LMCIT). Revenues are derived primarily by transfers from benefited funds and insurance rebates. The general liability property and casualty premiums are based on a $25,000 deductible with a maximum $75,000 aggregate; the deductible becomes $1,000 per occurrence upon attaining the $75,000 aggregate. The statutory municipal tort liability limit is $1 million. LMCIT. adjusts premiums annually based on each City's coverage limits and claims history. The annual LMCIT liability rebate is credited to this fund. The City is enrolled in the LMCIT workers compensation "regular" program, which provides a fixed premium based on payroll and provides no claim risk to the City as a result of high claims experience. The City's workers compensation premiums are accounted for directly in the responsible funds. The City's favorable claims experience (.73 workers comp experience ratio for 2003) is due to the safety conscientiousness of its employees, which results in a significant reduction in risk management costs. CAPITAL PROJECTS FUNDS Capital Project Funds account for financial resources appropriated to the acquisition of capital facilities and equipment, except those financed by Enterprise Funds. The Equipment Fund accounts for the purchase of public safety, street and park maintenance equipment. In March 2003, the City issued $2,260,000 of General Obligation Equipment Certificates of Indebtedness to finance the acquisition of the 2004 and 2005 equipment acquisitions. Due to prudent fiscal management practices, the fund will have ari approximate $314,000 balance as shown below: 23 Equipment Fund 2004 2005 Revenues 2003 Certificates $ 2,280,000 FEMA Grant (Smoke Trailer) 41,400 - $ 2,321,400 $ - Expenditures Police 294,694 324,150 Fire 469,572. 121,770 Streets 252,905 387,969 Parks 144,296 98,388 Issuance Costs 28,263 - Total Expenditures $ 1,189,730 $ 932,277 Net Increase/(Decrease) 1,131,670 (932,277) Fund Balance January 1 114,606 1,246,276 Fund Balance December 31 $ 1,246,276 $ 313,999 The Building Fund accounts for construction or improvement activity related to public buildings. Due to levy limit impositions, future transfers from the Liquor Fund have been compromised. The 2004 primary expenditures by location are as follows: 2004 2005 City Hall: City buildings vending machine energy savers $ 1,303 $ - Engineering rotary file repl. (existing to Human Resources) 33,015 - Fire Department: Station. #2 -Remodeling 49,578 - Station #2 -Replacement apparatus bay doors 21,353 - Station #2 -Replacement garage door openers 4,233 - Public Works Facility Bidding 38,050 - Senior Center: Building furnace (80% efficiency) 6,328 - Building air conditioner 5,377 - Exterior painting 2,058 - Interiorpainting - 2,432 Total Expenditures $ 161,295 $ 2,432 The Building Fund 2003 budget provides for architectural services to prepare plans and specifications for a new Public Works Maintenance Facility. The facility land acquisition and 24 construction costs will be financed with the issuance of lease revenue bonds. The facility will be centrally located in order to cost-effectively provide City services. The Park Dedication Fund accounts for park dedication fees received from development. The expenditures consist of acquiring and developing City parks and trails. The demands for system improvements .from new subdivisions require fees derived from new commercial, industrial and residential plats. Revenues need to be carefully monitored before park development projects proceed. Development of the following parks is proposed in the Capital Improvement Plan. 2003 2004 2005 2006 Village Creek $ 321,000 $ 120,000 Prairie Lake Park 10,000 270,000 282,000 Lynwood Heights Park 77,500 Valley Lake Park reconstruction: 166,100 308,000 Greenway plat -pocket park - - 74,000 - Total $ 331,000 $ 347,500 $ 360,100 $ 590,000 Some of the more significant trails projects are as follows: 2003 2004 2005 Klamath Trail Phase III $ 365,225 Crossroads 176,928 79,407 Greenway Plat 123,366 89,300 Spring Hill 51,050 Oaks of Lake Villa 70,525 Dodd Marsh 64,500 10,000 Vermillion Springs 66,000 Prairie Lake Park 56,500 Marion Fields 4th Addition 22,400 Springbrook Plat 17,750 Village Creek 92,500 Creekside Village 67,345 Corner Stone 77,700 Lake Place 52,900 Shady Oak Grove 30,900 Mallard Shores - 57,850 - Total $ 1,106,744 $ 398,057 $ 67,345 25 ENTERPRISE FUNDS Enterprise Funds account for liquor, water and sanitary sewer operations for the City; they are self-supporting from retail sales and user charges. Operations are managed in much the same way as private enterprises. Liquor Fund According to the Minnesota State Auditor, Lakeville ranks first in municipal liquor sales. Sales are projected to increase to $10.3 million in the coming year. lKCiHIGIE*Al..liQ1~S~4LE5 ,s,otw,oao _ ar s,odo,aov - ~,~vo,ooo - - _ - - - - 1 . 't99B 3397 189, ~99~: ~Ol?0 ~ 20U1 zodz 2i1E3~ 2aFJ4..' As a result, net income before transfers is estimated to attain $743,000 in 2004. A summary of financial operations for 2004 is as follows: Liquor Fund Operation Sales $ 10,357,852 Cost of goods sold (7,869,410) Gross profit 2,488,442 Operating expenses (1,550,862) Operating income 937,580 Other revenue (expense). (206,471) Net income before transfers $ 731,109 Liquor Store No. 1 is located in Heritage Commons near the intersection of Highway 50 and Dodd Boulevard. Liquor Store No. 3 is City-owned (5,200 square feet) and located at Cedar Avenue and 162"d Street, and Store No. 4 is City-owned (9,600 square feet) and located at 26 the Interstate 35 and County Road 46 intersection. Proposed capital outlay requests for 2004 are as follows: Countertop Replacement (Liquor Store #3) $ 13,845 Carpet Replacement (Liquor Store #3) 13,020 Indoor Color Cameras X 11 (Liquor Store #3 & #4) 10,310 CCTV Digital Surveillance Recorder (LS #3 & #4) 9,418 LS9208 Barcode Scanners 7,370 LANT 09 Server Upgrade 7,020 CP Wireless Software & Equipment 4,031 Interior Painting (Liquor Store #3) 3,025 Shopping Carts X 12 (Liquor Store #1) 2,093 Outdoor Color Cameras X 3 (Liquor Store #3 & #4) 4,474 TOTAL 2004 CAPITAL OUTLAY $ 74,606 Liquor Revenue Bonds in the amount of $1.4 million were issued in 1997 to finance the construction of Store No. 4. Principal and interest in the amount of $120,000 and $42,970 respectively are. payable in 2004. Transfers are proposed to Fire Station No. 4 Bonds ($204,035); Water Bond Fund ($79,483) for the City share of meeting room located at the Water Treatment Facility; and to the General Fund ($711,468) due to state aid reductions and levy limit impositions. The Legislature has for a number of years considered the "wine in grocery" legislation that would have authorized grocery stores to sell wine. Although the bill has not passed, the proposed legislation will likely be reconsidered in future legislative sessions. If this legislation were to pass, the Liquor Fund could experience a $200,000-$300,000 loss of net income. Water Fund The proposed Water Operating Fund 2004 revenue estimates take into consideration an estimated 800 new residential dwelling units and weather conditions premised on normal temperatures and precipitation. Water rates are currently $2.50/account and $.84/thousand gallons of consumption. Lakeville has the second lowest water rate in Dakota County in spite of the fact that treated water has been available since January of 1998. There are no proposed rate increases for 2004; however, the DNR has indicated that future water appropriation permits may require the City to institute a tiered-rate structure during peak water consumption periods. 27 The affordable water rates are due to the financial management foresight of the City Council whereby water infrastructure improvements such as wells, towers and the Water Treatment Facility are financed with water connection charges rather than water usage rates. The City has $12,205,000 million in General Obligation Water Revenue Bonds outstanding; revenues from the water connection charges are pledged to the repayment of the debt. A comparison of the 2003 and 2004 financial operations is as follows: Water Fund 2003 2004 Revenues $ 2,136,289 $ 1,941,967 Operating expenses (1,364,671) (1,485,812) Net operating income 771,618 456,155 Interfund transfers, net (73,615) (84,979) Major projects (475,000) (1,205,000) Capital outlay acquisitions (59,822) (4,122) Net increase/(decrease) 163,181 (837,946) Working capital January 1 4,432,908 4,596,089 Working capital December 31 $ 4,596,089 $ 3,758,143 The 2004 Water Fund provides funding for a water system vulnerability assessment ($55,000) and inspection of City water towers. The Water and Sanitary Sewer Operating Funds jointly own certain assets. The 2004 proposed. capital outlay budget is allocated as follows: Chemical Pump and Control 11,262 Water Level Meter 1,938 Locators 1,864 Computer (iJtility Billing Clerk) 1,734 Touch Pad Readers 1,235 Handheld Radios 1,234 Overhead Door 1,070 Submersible Pump 884 Flatbed Scanner 501 Ergonomic Office Chair 469 Barcode Scanner and Stand 452 Typewriter 426 Cordless Hammer Drill 341 Cordless Sawzall 320 Internal CD-RW Drive 133 Total 23,862 28 In addition, improvement costs to be financed from the Water Operating Fund include the rehabilitation of Well #7 -Fairfield ($65,000) and well collection pipe construction along Dodd Boulevard from the Water Treatment Facility to Cedar Avenue ($1,140,000) Water and Sanitary Sewer operating .funds will reimburse the General Fund for their respective share of administrative costs. The Surface Water Management Fund reimburses the Water and Sanitary Sewer Operating Funds for its fair share of processing utility bills. Sanitary Sewer Fund Metropolitan Council Environmental Services (MCES) is responsible for sewage treatment and disposal. MCES is increasing sanitary sewer processing costs in 2004 by approximately 3.1%. MCES total annual costs are as follows: MCES 2003 2004 Increase Base rate $ 1,300 $ 1,340 $ 40 Gallonage (millions) 1,600 1,680 80 Total MCES annual charges 2 079 851 2 251 039 171 188 The 2004 Sanitary Sewer Operating Fund budget will continue to finance annual sanitary sewer televising, cleaning and monitoring of sewer inflow and infiltration. The Sanitary Sewer Operating Fund shares the cost of leasing the Vactor with the Surface Water Management Utility Fund; each respective budget provides its share of appropriations for the annual lease payment. A comparison summary of 2003 and 2004 financial operations are as follows: Sanitary Sewer Operating Fund 2003 2004 Revenues $ 3,049,701 $ .3,282,111 MCES expense (2,079,851) (2,251,039) Operating expense (1,173,712) (566,534) Net operating income (203,862) 464,538 Interfixnd transfers, net (71,860) (83,171.) Capital outlay acquisitions (59,822) (4,122) Net increase/(decrease) (335,544) 377,245 Working capital January 1 2,505,212 2,169,668 Working capital December 31 $ 2,169,668 $ 2,546,913 29 Residential sanitary sewer user revenues are based on winter quarter consumption or actual, whichever is less. Commercial, industrial and institutional accounts are billed based on actual water usage. Sanitary sewer rates are currently $3.20 /account and $2.31 /thousand gallons of consumption with a 5,000- gallon minimum consumption. The City Council needs to consider increasing sanitary sewer rates, effective February 1, 2004,to offset the MCES rate increases. Lakeville sanitary sewer rates would need to be increased as follows to offset the MCES costs. Sanitary Sewer Rates 2003 2004 Increase Quarterly rate per account 3.20 3.20 0 Rate per thousand gallons 2.31 $2.37 .06 The sanitary sewer charges above would result in an approximate $1.50 /quarter ($6.00 /year) increase for the average family. 30 PROPERTY TAXES As a result of a $4 billion state deficit, the Legislature reduced Local Government Aid (LGA) and the Market Value Homestead Credit (MVHC) program. The net result to Lakeville was an entire loss of the LGA ($499,158) and almost all of its MVHC ($656,230). In addition, the Legislature imposed severe levy limitations for cities in fiscal year 2004. Cities may levy to replace only 60% of the State Aid lost from LGA and MVHC. Levy limits also excluded the levy growth adjustments for inflation, household growth and commerciaUindustrial growth typically allowed in the previous three decades. Special levies, such as debt service, are. not affected by levy limits. The proposed budget is based on a maximum tax levy as follows: Tax Lew 2003 2004 Operations $ 9,963,013 $ 10,499,398 Certificates of Indebtedness 854,591 1,071,016 Voter approved debt: 1986 Park Bonds (refunded 1993 issue) 126,828 142,530 1994 Park Bonds 268,464 269,685 1986 Fire Station #3 Bonds 78,887 - Improvement Projects: 2000 G.O. Improvement Bonds 322,767 322,767 2001 G.O. Improvement Bonds 58,132 2003 G.O. Street Reconstruction Bonds 309,639 452,072 Total Tax levy $ 11,924,189 $ 12,815,600 The tax levy results in an approximate 7.8% decrease in the tax capacity rate primarily due to a 16.8% increase in the net tax capacity as a result of market value appreciation, limited market value increase from 10% to 12% and tax base increase due to new construction of residential, commercial and industrial property. 2003 2004 Tax Capacity Rate calculation Actual Estimated Tax levy 11,655,725 12,545,915 Fiscal disparities (1,309,387) (1,410,454) Net tax levy 10,346,338 11,135,461 Net Tax Capacity 31,404,713 36,670,908 Tax Capacity Rate 0.32945 0.30366 31 Tax levies for bond issues approved by referendum after August 1, 1994, are based on market value rather than tax capacity value. The only City of Lakeville levy based on market value is for 1994 Park Bonds, shown as follows: 2003 2004 Actual Actual Market value 3,1.54,688,602 3,703,861,000 Tax levy for 1994 Park Bonds 268,464 269,685 Tax Rate based on market value 0.0000851 0.0000728 According to the Dakota County Assessor's Office, the market value for the majority of residential properties has been increasing by more than 10% per year for several years. The homesteaded residential properties have some protection from significant tax increases due to the "limited market value" law, which states that taxable market value increases cannot exceed 10% per year and 12% per year for taxes payable for 2003 and 2004, respectively. The purpose of the limited market value is to phase in significant market value increases (and taxes) over several years. The limited market value does not apply to rental housing (with more than four units) or commercial/industrial properties or an increase. due to improvements. The .2001 Omnibus Tax Law provided a market value homestead credit to residential properties. The credit is limited to a maximum of $304 on a $76,000 home. The market value homestead credit is phased in for homes in excess of $76,000 at a rate of .09% of the home's value in excess of $76,000. In other words, as the home appreciates, the credit is reduced. The tax capacity rate is subject to changes in the Assessor's final estimated market value. Taxpayers may experience a change in actual property taxes depending on the market value or property classification rates where there are specific parcels. The following is an estimate of City property taxes on a $200,000 homesteaded residential parcel: 2003 Limited market value $ 200,000 2003 City property taxes $ 613 2004 Estimated City taxes $ 642 Increased City taxes $ 29 Increase due to: Reduction in MVHC $ 10 City tax levy $ 19 Increased City taxes $ 29 32 Taxes will increase by approximately $9 because the Market Value Homestead Credit is reduced as the market value of the home increases. Since the majority of Lakeville homes will increase 12% based on the Limited Market Value Law, the credit is reduced accordingly. The City share of taxes will increase due to the 60% levy for lost state aids. The City Council has the ability to adopt a final tax levy in December that is equal to or less than the preliminary tax levy approved in September. However, it may not adopt a final tax levy that is greater than the preliminary tax levy. TRUTH IN TAXATION Minnesota Statutes require cities to certify the proposed property tax levy to the County Treasurer/Auditor and adopt a proposed budget on or before September 15. The County Treasurer/Auditor will mail parcel-specific Truth in Taxation notices on approximately November 15. These notices. inform property owners of the time and place of the budget hearings and the impact of the proposed property tax levy. City councils are also required to certify to the County Treasurer/Auditor the date for the budget public hearing. City staff is recommending Monday, December 8, 2003, for a public hearing to present the budget; this date follows Truth In Taxation hearings for the school districts (December 2) and Dakota County (December 4). The Truth in Taxation law also requires that the budgets and tax levy must be adopted at a subsequent meeting after the hearing is closed. The City staff recommends that the City Council adopt the budgets and tax levy at its regular meeting on Monday, December 15. CONCLUSION According to the Minnesota State Auditor's Office, Lakeville's per capita expenditures are significantly less than those of other Minnesota cities. Lakeville is able to maintain below average expenditures due to prudent fiscal management and the fact that the City continues to employ only 3.4 employees per 1,000 population. 33 In addition, Lakeville's bond rating was recently upgraded from A2 to Al by Moody's Investor Service. This is the second upgrade in two years. In its review, Moody's credited the upgrade to Lakeville's maintenance of a sound financial position, given its history of prudent fiscal management, which has contributed to the accumulation of a sizable general fund reserve. Historically, Lakeville has had one of the lowest tax capacity rates in Dakota County for cities over 5,000 population. co~P,~wso~a~.r~r~sat~?rY#r~sac~z:~aoa r<,: B.BOd 8'S'Tf _ 0.6U1 osoo - - - '[e:d69 ~!Ri3'. OAf6 0.3E7 11.39!! tl.409 ~ x.40$ ~ - - - r,~ i ~ q.3np ~ a ~ o.,uo Y. , a.ooo c X0'1` . p~ ' 1.Q ~?F' Lakeville's low tax rate is due to: • Prudent fiscal management • Long -term and short -term debt policies • CommerciaUindustrial growth • Increased value of new residential, commercial and industrial construction • Fiscal disparities contributions • Strategic Growth Management Plan • Economic. Development Commission's Strategic Plan 34 • Two-year budget planning process • Five-year Capital Improvement Program • Municipal liquor profits • Effective risk management • Joint (shared services) Powers Agreements • Privatization - outsourced services with private firms The 2004 budget and tax levy reflects the long-term vision, prioritization of services and financial stewardship that are required to navigate our community through these challenging times. I would like to thank the Mayor and City Council for making the tough policy decisions required during and following the recent legislative session. Finally, department directors have made sacrifices from their operations in order to assure quality basic service delivery in the coming year. This combined effort will ensure long-term fiscally responsible outcomes. e ct lly, o e A. rickson City Administrator 35