HomeMy WebLinkAbout03-26-02 City of Lakeville
Economic Development Commission
Regular Meeting
Agenda
Tuesday, March 26, 2002, 6:00 p.m.
Lake Marion Conference Room, Community Development Department
City Hall, 20195 Holyoke Avenue
1. Call meeting to order.
2. Approve February 26, 2002 meeting minutes
3. Advanced Wireless Redevelopment Agreement
4. Update on the purchase of Flyteline Services: Steve Wentworth
5. 2002-2004 Strategic Plan
A.) Work Plan Goal #1: Educate residents on benefits of C/I
• "Spotlight on Business"
• Update on C/! Subcommittee
B.) Work Plan Goal # 3: Encourage investigation of critical business infrastructure
• Interchange Study
• High Tech Subcommittee -Progress on E-Commerce Readiness
Certification; Meeting with additional service providers
6. Director's Report.
7. Adjourn.
Attachments:
1. Letter regarding UtiliCorp/People's Natural Gas name change to Aquila.
2. Letter to HJ development regarding commercial development in Lakeville. _
3. Letter from GE Capital regarding Industrial Development Bonds.
4. Minnesota Economic Indicators., Minnesota Employment Review, February, 2002.
5. Regional Economic Indicators., Minnesota Employment Review, February, 2002.
6. Letter to Bryan Reichel of PureChoice, Inc.
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City of Lakeville
Economic Development Commission
Meeting Minutes
February 26, 2002
Marion Conference Room, City Hall
Members Present: Vogel, Brantly, Emond, Erickson, Matasosky, Miller, Pogatchnik,
Schubert, Tushie, Ex-Officio member Todd Bornhauser.
Members Absent: Ex-Officio member Robert Erickson.
Others Present: Staff present: David Olson, Community & Economic Development
Director; Ann Flad, Economic Development Coordinator and Karla Hartmann,
Engineering Secretary.
1. Call Meeting to Order. Chair Vogel called the meeting to order at 6:02 p.m. in
.the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville,
Minnesota.
2. Approve January 22, 2002 Meeting Minutes.
Motion 02.06 Comms. Matasosky/Erickson moved to approve the minutes of
the January 22, 2002 meeting. Motion carried unanimously.
It was noted that the representative from Advanced Wireless Communications
was in attendance and suggested moving this item up on the agenda.
3. Advanced Wireless Project Update. Appro Development introduced Ms.
Brenda Sand, General Manager of Advanced Wireless. Mr. Olson reviewed the
staff report and noted that a special meeting may need to be held prior to the
March 18t" City Council to review the proposed business subsidy agreement. A
tentative meeting window of March 11t" to the 13t" was discussed and it was
determined that a quorum would be available for those dates. Staff indicated they
.would get back to the commissioners with specifics.
Mr. Olson stated that the building plans have been delivered to the County
Assessor's office for review and determination of Estimated Market Value.
Discussion took place regarding the tax increment financing plan and what effect
it has on the CSAH 70 interchange improvements.
Mr. Tushie asked how many jobs would be generated with this facility. Ms. Sand
stated that there are approximately 100 employees in total of which 35 will be
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Economic Development Commission
Meeting Minutes ,
February 26, 2001
located at corporate headquarters. It is anticipated that 15-20 new employees
would be added within the next 18-24 months.
Ms. Sand provided an overview on the job salary ranges. Ms. Sand stated the 2-
way radio technicians can earn $14-25/hour and the sales force has a base of
$55,000 plus commission.
Mr. Matasosky indicated the project construction will begin in April and anticipates
it will take 4.5 months to complete.
No action was taken as this was an informational only item on the agenda.
4. 2002-2004 Strategic Plan.
4A) Work Plan Goal #1: Educate residents on benefits of C/1
Mr. Olson stated that the City Council unanimously approved a proposal to
feature and to recognize local businesses on a regularly scheduled basis at
City Council meetings. In order to ensure effectiveness, the Council has
requested it be limited to two businesses per meeting, and to visually display
the business location in some form. The March 4th City Council meeting will
spotlight Progressive Rail. Mr. Matasosky volunteered to be present for
introductions at the March 4th meeting and Mr. Emond volunteered for the
March 18th meeting. Discussion regarding potential businesses to feature for
the March 18th meeting occurred. Mr. Olson indicated Staff would write the
introduction and fact sheets on the featured business.
Mr. Olson stated that the C/I subcommittee held its first meeting on January
31, 2002. The subcommittee concluded that additional information was
needed on five chosen metropolitan cities.
Chair Vogel commented that it is important to relate benefits to the
Comprehensive Plan and to give residents a picture of what Lakeville will look
like. He stated that residents with a "not in my backyard" attitude need to be
educated on the C/I benefits. Mr. Emond agreed that they need to be shown
how it affects their pocketbook, i.e. retail square footage equates to additional
tax dollars for the community, therefore a lower tax base for residents. Ms.
Schubert stated that education also helps eliminate the element of surprise so
residents know what to expect.
4B) Work Plan Goal #3: Encourage investigation of critical business
infrastructure
Mr. Olson stated that Staff is working with Springsted on the preliminary ana{ysis
for the Interchange Financing Study and that some information should be ready
for review at the March EDC meeting.
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' Economic Development Commission
' Meeting Minutes
February 26, 2001
Discussion took place regarding telecommunication providers and what the future
holds for the telecommunication industry.
5..2002 CDBG Downtown Improvement Program: Solicitation of Applicants.
Ms. Flad reviewed the staff report and attachments. Mr. Tushie asked if Staff
plans to include specifics on available funding in the solicitation letter. Mr. Olson
stated that Staff is open to suggestions or comments regarding this issue. Mr.
Matasosky expressed concern about the perception that funds are available. Ms.
Flad noted that the CDBG funds could possibly be allocated in the future. Ms.
Flad also indicated that the funds are on a "first-come first serve" basis. Mr.
Pogatchnik asked if the unused balance carries. over. Mr. Olson responded that
HUD allows funds to be carried over with some limitations county-wide.
Mr. Olson stated that the Enggren's agreement is still being worked on.
6. Customer Service Training.
Ms. Flad reviewed the staff report, indicating that a session has been scheduled
for March 6t" for all City employees. Ms. Flad indicated that participation from the
EDC members in the small group sessions is requested. Ms. Flad passed around
a sign up sheet and said that there are 14-16 slots to fill and she would be asking
the business members to fill the remaining slots. Mr. Bornhauser offered to help
provide contact names.
Mr. Brantly stated he believes the training should be held on a regular basis to
prevent slippage in customer service. Chair Vogel agreed and stated that training
needs reinforcement in order for it to be effective.
Mr. Olson noted that in addition to the customer service training, employees have
other opportunities available throughout the year to receive training such as
Municipals and other seminars.
Chair Vogel made a recommendation to provide supplemental or ongoing
customer service programs.
7. Annual Report -Development Project Feedback Survey.
Mr. Olson stated that Lakeville is one of the only cities in Dakota County that
surveys developers on C/I development. He indicated that Staff sent a letter to all
City Administrators and Managers in Dakota County with 2001 survey results.
Considerable discussion took place regarding the slight decrease in respondents'
reported level of satisfaction with the City of Lakeville, and Ms. Flad attributed this
G:\KHartmann\EDC minutes Feb 26.doc
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Economic Development Commission
Meeting Minutes ,
February 26, 2001
to the fact that "satisfactory" rankings were not included in the results from
previous years. She noted that there were no "poor" rankings.
8. Executive Director's Report
Mr. Olson reviewed his report, and distributed Airlake Business Maps that show
existing businesses within Airlake Industrial Park and the parcels available. Mr.
Olson also distributed a copy of an article from the Minnesota Real Estate. Journal
featuring Lakeville.
Mr. Olson also updated the Commission on the sale of the FBO at Airlake Airport
to Steve Wentworth ,owner of Wentworth Aviation. Mr. Wentworth will be invited
to attend the March EDC meeting.
9. Adjournment. "
The meeting was adjourned at 7:40 p.m.
Respectfully submitted by: Attested to:
1
Karla Hartmann, Recording Secretary R. T. Brantly, Secretary
G:\KHartmann\EDC minutes Feb 26.doc
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T4: Economic Development Comrrrission
CC: Ben Coons, President/CEO Advanced Wireless Communications
Robert Erickson, City Administrator
Ann Flad, Economic Development Coordinator
FROM: David L. Qlson, Community & Economic Development Director
.DATE; March 22, 2002
'RE; Contract for Priva#e Redevelopment -Advanced Wireless Cammunications
..`.City staff and the City Attorney have been in discussions with representatives of Advanced
Wireless Communicaticsns (AWC} regarding the sale of Lot 2, Block 1, Fai~-#ield Business
Campus 2"~ Addition for the purpose of allowing AWC to construct a new corporate
headquarters. The Company focuses on the sales and service of wireless communications
products and-two-way radio products to both consumers and businesses. Additional
.background information on AWC is attached.
The Con#ract for Redevelopment (also known as the Business Subsidy Agreement} that has
b+~r? prepared is very simiEar to the agreements #hat have been prepared #c~r previt3us
:projects in the Fairfield Business Campus. The main provisions of the agreement autl~torizes
the City to sell Lot 2, Block 1, Fairfield Business Campus 2"~ Addition (a~prroximately 2.6
acres} and in exchange AWC agrees to the following:
• AWC agrees to construct a twa-story 23,000 square foot building using architec#ural pre-
cast panels. Copies of the proposed building design have previously been provided to
EDC members and have also been reviewed and approved by all of the Falrfle#d Basir~?ss
`Association property owners. AWC agrees to substantially complete construction of these
improvements by November 1, 2Q0~.
• AWC agrees to minimum market value for property tax purposes of $1,575,000 until the.
maturity date of any outstanding bonds for the Fairfield Business Campus TIF District.
:The maturity date of these bonds is in 2022. Based on the current property #ax class
r€~tes and levy rates, it is estimated that the AWC will generate property taxes totaling
,$57,603 per year with $18,536 0# this amount being captured tax increment.
• AWC agrees to create a minimum of 14 jobs within the next two years in conjunction with
this project. The average wage level ofi these jobs will be $30,000 per year. I#AWC fails
#a achieve these jab creation goals, AWC wiU be required to reimburse the City the
amount of the assistance that has been provided. This has been determined to be
$232,300 based on the Assessor`s determination of market value for the lot that has bean
conveyed. AWC also agrees to keep its operation at this location for a minimuma# five
years.
• AWC agrees to pay park"dedication fees in the amount of $14,44 and storm sewer area
-fees in the amount of $20,842.
• AWC also agrees to fhe City's standard prQVisions in regards to insurance and
condemnation, prohibitions against assignment, transfer and ind®mnification, and
determination of events of default.
• AWC's financial reports have been reviewed by City Finance Qirector Feller. It has been
determined that AWC has demonstrated aggressive and consistent growth since its
inception 10 years ago and has the financial and managerial ability to undertake the
project.
It is the r~ommendation of staff that the EDC recommend approval to the City Council of the
proposed aedevelopment Contract for the Advanced VtiirelQSS Communications project.
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~ PROPOSED NEW FACILITY FOR: Vn
ADVANCED WIRELESS COMMUNfCAT10N5 "
AFPRO DEVELOPr1ERT, 18C. - .~+°.-.nm u.«. w..
FDA w~vnta ~ LAKEVILLE. MNL 6b011
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R E:~t F S
~oMMUNlC ONS
March 8, 2002
Dave Olson
Community & Economic Development Director
City of Lakeville
Dave,
We request that the public hearing date be changed to April 1, 2002 for our buildiAg
project. The date vvas scheduled for March 18, 2002. This. will allow ample time for ou:~
attorney to review the proposed agreement.
The estimatiozxs on employment and wages are as follows:
Sales Management Positians - 2 $50,000 plus commissions
Salesmen Positions - 8-12 $25-30,000 plus commissions
Service Manager -1 $50,000
CFO - l $75,000-90,000
Service Technicians - 2 $25-45,000
Thank you,
Brenda Sand
2t]855 KEN5INGTC)N BLVD
LAKEVILLE: MN 5504474Q6 -
MAIN 952.469.Sdp0 TOIL FREE BOO-475.5852 ~ - • •
TTY 652.469.01.79 F;qX 952,469A 1 70 ~ - ~
WwW.FlDUfI(1CEDWIPiEl.E55.COft1 y~~•
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~4dvanced Wireless
Estimated Tax Increment
Payable 2002
Total Fiscal State
Rates Taxes Jurisdictions Disparities Tax
Tax Capacity 1.00080 1.00080 0.34854 0.57933
Market Value 0.0018844 0.0018844. 1.56497
Estimated Building Value 1,342,100
Estimated Land 232,900
Less: Base Value (116,000)
Est TIF market value 1,459,000
Market Total Tax Fiscal State
Value Taxes Increment Disparities Tax. Other
1,575,000 57,603 18,536 16,773. 17,814 4,481
ADVANCED WIRELESS COMMUNICATIONS
BACKGROUND
NATURE AND HISTORY OF ADVANCED WIRELESS COMMUNICATIONS
Advanced Wireless Communications, is a Minnesota S corporation incorporated in June '
of .1992. Headquartered in Lakeville, .Minnesota, the Company. has .the .following
business segments:.
¦ MALL RETAIL BUSINESS- The Company's mall retail business focuses on sales of
wireless communications products and services to consumer and small business
customers in. various retail locations throughout the Twin Cities. The Company is
currently pursuing plans.to expand the number of retail stores in the Twin City area.
Product and service offerings include cellular phone sales and service, pager sales
and service, Verizon repair service and other related sales and services.
¦ RETAIL BUSINESS- This area of the Company focuses on sales of wireless
communications products and services to consumer and small business customers, in
the Northfield area and southern Minnesota area. Product and service offerings
include cellular phone sales and service, pager sales and service, repair services .and
Other related sales and services.
¦ RADIO BUSINESS- This .area of the Company focuses on sales of two-way radio
produots, accessories, and related services to local small colleges and universities
.and large national retailers. Products and services offered include radio sales, radio
accessory sales, radio parts sales, radio rentals and. technical services..
¦ E-COMMERCE BUSINESS- This segment of the Company focuses on sales of cellular
phone accessories from the Company web site through direct linkage to a contract
fulfillment service. This allows the Company to gain commission fee revenues.
¦ INSTANT ASSISTANT BUSINESS- This area of the Company generates direct sales and
support services' through the distribution of the Company's proprietary wireless
~ communications product. The product is sold mostly to large retailers for- in-store.
customer and employee communications, monitoring and control, however, ~ the
r_c
Company is continually developing new potential uses for this product.
The Company had its beginning through Mr. Coon's incorporation of Cannon
Communications, Inc. in 1988: ~ Cannon Communication originally represented Motorola=
in the sale and service of a new line of two-way radios- and- provided private carrier
paging. services.
In 1990, Cannon Communications produced a business plan which .embraced the
development of certain other services for-the wireless communications market, including
a wide-area paging system.. Primarily because of its interest in these new developments,
Hager .Telecommunications bought Cannon Communications.. in December 1990. Ben
Coons continued to manage .the entity under contract until his resignation. from Hager
Telecommunications in April 1992.
VIRCHOW KRAUSE VALUATION, LLC PAGE 1 '
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ADVANCED WIRELESS COMMUNICATIONS
Following Mr. Coon's resignation from Hager Telecommunications, he incorporated
Advanced Wireless Communications, Inc. in June 1992. During .the .mid-nineties the
Company developed a .two-way radio business through sales to several colleges and
universities in the Northfield and Twin. Cities .areas. In February 1996, Target. Stores
placed its first radio order with. the Company, opening it to the large retail market that has
continued to the present. During the -same period, the Company has been active in the
planning and development of its wireless products retail business. Please see Exhibit A
for a more detailed nature and history of the Company.
EXHIBIT A
COMPANY BACKGROUND
HISTORY AND DESCRIPTION
Advanced Wireless Communications, is a Minnesota S corporation. incorporated in June
of 1992. Headquartered in Lakeville, Minnesota, the Company has the following
business segments: Advanced Wireless Communications, is a Minnesota S corporation
incorporated in June of 1992.. Headquartered in Lakeville, Minnesota, the Company has.
the following business segments:
¦ MALL RETAIL BUSINESS- The Company's mall retail .business focuses on sales of
wireless communications products and services to consumer and small business
customers in various retail locations throughout the Twin Cities.. The Company is
currently pursuing plans to expand the number of retail stores in the Twin City area.
Product and service offerings include cellular phone sales and service, pager sales
and service, Verizon repair service and other related sales and services.
- RETAIL BUSINESS- This area of the Company focuses on sales of wireless
communications products .and services to consumer and small business customers,
in the Northfield area and southern Minnesota area. Product and service offerings
include- cellular .phone sales. and service, .pager sales and service, repair services
and other related sales and services.
¦ RADIO BUSINESS- This area. of the Company focuses on sales of two-way radio
products, accessories, and related services to local small colleges and universities
and large national retailers. Products and services offered include radio sales, radio
accessory sales, radio parts sales, radio rentals and technical services.
¦ E-COMMERCE BUSINESS-This segment of the Company focuses.on sales of cellular
phone accessories from the Company web site through direct linkage to a contract
fulfillment service. This allows the Company to gain commission fee revenues.
¦ INSTANT ASSISTANT BUSINESS- This area of the Company generates direct sales and
support services through the distribution of the Company's proprietary wireless
communications product. The product is sold mostly to large retailers for in-store
customer and employee communications, monitoring .and control, however, the
Company is continually developing new potential uses for this product.
The Company had its .beginning through Mr. Coon's incorporation of Cannon
Communications, Inc, in 1988. Cannon Communication originally represented Motorola
in the sale and. service'of a new line of two-way radios, .and provided private carrier
paging services. _ - .
In 1990, Cannon Communications produced a business plan which embraced the
development of certain other services for the wireless communications market, including
a wide-area paging system. Primarily because of its interest in these new
developments, Hager Telecommunications ..bought .Cannon Communications in
December 1990. Ben Coons. continued to manage the entity under contract until his
resignation from Hager Telecommunications in April 1992.
Following Mr. '.Coon's resignation from Hager Telecommunications, he incorporated
Northfield Telecommunications, Inc., dba .Advanced Wireless Communications, in June .
1992. During the mid-nineties the Company developed atwo-way radio business
Al .
f
r . EXHIBIT A
` COMPANY BACKGROUND
through sales to several colleges and universities in the Northfield and Twin Cities
areas. In February 1996, Target Stores placed its first radio order with the Company,
opening it to the large retail market that has continued to the present. During the same
period, the Company has. been active in the planning and development of its wireless
products retail business.
.CUSTOMERS
The COmpany's revenue. base. originates from small- colleges and universities, large
national retailers and retail sales.
COMPETITION
According to management,. the Company's. major competitors by business segment are
believed to be as follows:
¦ MALL AND OTHER RETAIL BUSINESS- The Company competes with specialty wireless
retail outlets #or wireless products from multiple manufacturers, major wireless
' providers such as Qwest, Sprint, CCI Wireless, VoiceStream and Verizon, and multi-
product electronic retailers.
¦ RADIO BuslNESS- The Company's competition consists of other two-way radio
dealerships in the Twin Cities and southern Minnesota.
¦ E-COMMERCE BUSINESS- The. Company's e-commerce competition consists of other
e-commerce alternatives, mail-order catalog services, specialty wireless retail outlets
for wireless products, retail outlets with major wireless providers and large multiple-
product electronic retailers.
¦ INSTANT ASSISTANT- The Company's instant assistant product line competes with
"Shop Talk" by Indyme Electronics, as well as "Vigilance VGC600" and "Service Alert"
produced by Zetron, Inc.
FACILITIES
Currently, the Company has a corporate facility located in Lakeville, Minnesota. The
Company .also has various retail stores located in the Twin Cities. The stores are
located in Northfield, Burnsville Center, Maplewood Mall, Eden Prairie Center, Maple
- Grove .and Ridgedale Ci;nter. In 2001 the Company plans to obtain five additional. retail
locations in the Twin Cities area.
MANAGEMENT AND PERSONNEL
Currently, the Company has approximately 70 employees, 7 of .which are the key
employees listed below:
Mr. Ben Coons, 56, is the CEO and President of the Company. Mr. Coons'
responsibilities consist of overseeing the operations of the Company.
A2
EXHIBIT A
COMPANY BACKGROUND
¦ Mr. Ken Coons, 32, is the Company's Vice President. Mr. Coons is responsible for all
aspects of the Northfield Radio Business and he provides technical and operational
support to Northfield Retail and Mall Retail segments. Ken also provides support to
the development and marketing of the Instant Assistant.
¦ Ms. Brenda Sand,. 49, is the Vice President of Operations for Advanced Wireless.
Ms. Sand's duties consist of oversight of operations and office staff, support of daily
retail. operations from the Northfield facility and repair center operations support. Ms.
Sand also supports inventory management and product distribution to mall retail
stores and the radio business segment...
¦ Ms. Janet DeReu, 46, is the Controller for the Company. Ms. DeReu's duties consist
of supervising the accounting staff, overseeing all aspects of financial administration,
.ledger and sub-ledger accounting, financial reporting, cash management and bank
a::; liaison,. risk management and administration, and all payroll responsibilities related to
employee support services.
¦ Mr. Paul Kulseth, 39, is the Vice President of Technical .Services for the Company.
Mr. Kulseth provides technical support for the Company's line of radios and pager
products, including repair, maintenance and on-site support. Mr. Kulseth is also the
principal technical support providing design assistance,. planning, and .contractor
liaison as related to development andearly customer testing of the Instant Assistant.
¦ Mr. David Coons, 54, is the Director of Retail -for the Company. Mr. Coons is
..responsible for overseeing the expansion of the retail business segment.: Mr. Coons
is managing the development of additional retail stores in the Twin Cities area.
¦ Ms. Wendy Snyder, is the Human Resource Manager for the Company. Ms. Snyder
provides support for the management of the Company's employees.
COMPANY STRATEGY
. The Company's strategy is to .market their products towards consumers and ,small
business customers in the Twin Cites and Northfield area. Management believes this
market is strong and growing, .based on recent sales trends and increasing competitive
activity. The Company is focusing on customer service as a market distinction. The
focus of customer service is being obtained through education to employees and the use
of a central call cente"r that fields customer concerns at the headquarters allowing
employees to focus on the immediate customer in the retail store. - .
The Company markets products through brochures that outline the Company's product
line and in newspaper inserts in the Twin Cites metropolitan area. Advanced Wireless
also uses radio advertising, in-store promotional interviews and participates in two or
three-industry trade shows per year.
Additionally, .the Advanced. Wireless has begun focusing on differentiating the Company
from its competitors by working with the Friedman Group. The Friedman Group
specializes in retail training and. development, using a program that teaches managers
and sales. representatives to focus on the customer.
A3
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March 15, 2002 ~
Bryan S. Reichel,
President
PureChoce, Inc:
20855 Kensington Blvd.
.Lakeville,. MN 55044
Dear Mr. Reichel:
This letter is in response to your March 6, 20021etter regarding the vacant lot in Fairfield
Business Campus. adjacent to the Itron Building.
The impacts of the proposed development of the Advanced Wireless on the lot adjacent
to the Itron Building have been discussed with James Bingham recently. Mr. Bingham
was assured that an expansion of the Itron Building from its current 31,000 to 50,000
square feet would be feasible based on the current zoning requirements in place for the
Itron lot. Mr. Bingham has subsequently signed the attached approval form, as have .all
of the other property owners in the Fairfield Business Campus approving the proposed
.building design and site plan for the Advanced Wireless project.
Representatives of Advanced Wireless provided information to the City on August 28,
2001 regarding a proposal to develop the lot in question for which the Itron Building
owners still had an option. On October 5, 2001, the City received a letter of interest from
Advanced Wireless for the lot in question .and indicated that their attorney was in the
process of having the option on the lot released. It was as result in large part to the
efforts of Advanced Wireless and their attorney, that the option was released by the
owners of the Itron Building.. You are correct in that the option was not assigned to
Advanced Wireless or anyone else, but rather released back to the City of Lakeville. You
are also correct in that the date of signed release document was December 18. 2001. The
City has been in negotiations with Advanced Wireless since that time.
The proposed terms of the sale of the lot to Advanced Wireless are similar to the other
projects that have been done the Fairfield Business campus. The lot sale price is
proposed to be $1. Advanced Wireless would also be responsible for.Storm Sewer Trunk
charges and Park Dedication fees for the lot totaling $35,276. In exchange for this land
price "write-down," Advanced Wireless agrees to develop a building that will result in a
$1,575,000 market value for the property and create a minimum of 14 jobs with wages
levels between $25,000 - $50,000. The company also commits to operating the business
at this locate for a minimum of five (5) years. The City's General Fund budget would not
benefit from a higher land sale price since all land sale proceeds have to remain within
the Fairfield TIF District fund..
CitJ' uf' Lakeville
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.The project as proposed is consistent with approved Tax Increment Financing Plan for
the Fairfield Business Campus and is very similar to previous projects that have been
undertaken in Fairfield. I hope this information addresses your questions.
If you have further questions, you may contact me at 952.985.4401.
1
Robert Erickson
City Administrator
cc: Mayor and City Council
Economic Development Commission
Roger Knutson, City Attorney
--David L. Olson, Community and Economic Development Director
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In accordance with Section 6.2 of the Declaration, the Committee may approve.
this action without a special meeting as long as written approval is obtained from
a majority of the members. Thus,. after reviewing the plan, please check your
response below and fax it to me at 952-985-4429. If you have any questions or
concerns please call me at 952-985-4425.
Since ely~
Ann Flad
Economic Development Coordinator
c: .Ben Coons, PresidendCEO, Advanced Wireless Communications
Robert Erickson, City Administrator
David L. Olson, Community & Economic Devebpment Director
Jim Walston, Attorney, Rider, Bennett & Egan
Jack Matasosky, Appro Development
PLEASE FAX YOUR RESPONSE TO ANN FLAD AT 952-985-4429
BY MARCH 4, 2002.
As Fairfield Business Association's designated representative of
Representative of 20855 Kensington Blvd. Property Owners, I approve of
the proposed plans for Advanced Wireless Communications.
As Representative of 20855 Kensington Blvd. Property Owners's
signaled representative, (would like the Fairfield Business Association
o meet and ~u e ? cuss the.proposed plans for Advanced Wireless
C mmunicatio s.
Signature: -u..91 Date: ',l `~o~
Print Nam ~ S
~
MAR-01-2002 1428 8887670903 96i P.02
20855 Kensington Boulevard
Suite 10U
Lakeville, Minnesota 55044
y ~ ~'o ~ ~ 800-845-5544 .952-985-0500
.
Fax: 952-985-0505
www.purechoice.com
March 6, 2002
Mr. Bob Erickson, City Administrator
City Of Lakeville.
20195 Holyoke Avenue
Lakeville, Minnesota 55044
Mr. Erickson,
I am writing to ask your assistance in getting to the bottom of this matter surrounding
thelot that has recently come available next to our building here at 20855 Kensington
Boulevard. I appreciate your calling me back with a clarification on the expandability on
this building but I am not satisfied that everything is being handled properly on the
vacant lot issue.
Losing that lot from this parcel greatly impacts the future value of the building here and
having recently moved in to this property, I am concerned that the City might be
negotiating special deals outside the original Tax Increment District filing that will affect
the future expandability of this building and overall value of PureChoice, Inc. at this
location.
To recap, you and I have spoken several times on the phone following my requests for
information to Mr. Olson and other City employees pertaining to that parcel. It is my
understanding from you that the City entered negotiations with AWC on that parcel
relatively soon after that parcel .became available. It is also my understanding from you
that the parcel was not released back to the City, but rather to AWC directly. However,
further research shows contrary to that - in fact that the transfer from Itron and the
Prime Landlord (Mr. Bingham) to AWG never took place and the only transfer that I can
find on record was to the City Of Lakeville and did not happen until December 18, 2001.
Assuming for the moment for that last scenario to be true, could you verify for me as to
how soon after that date the City began their negotiations with. AWC for that parcel? As
.you recall, I had inquired about the property last year but was told it was not available or
for sale.
Could you also provide me with a plat map showing me exactly where the additional lot
boundaries lie? I am .curious how much land exactly is available and .how it interacts
with this parcel that we are currently occupying at 20855 Kensington. I could come in for
all of this information to make it easier for you if you let me know a convenient time to
do so.
Finally, I am interested in knowing what the price of the lot as it is being offered in the
deal. to AWC. Again - my research only shows that it was released back to the City of
Lakeville and at a time when budgets are tight and money is short, I am assuming that
the City of Lakeville has had the parcel appraised and is interested in the highest and
best price and also use for the land.
am sure that other questions will follow, but for now, I feel that this is a good place to
start.
appreciate your assistance .and I look forward to you sending me a response.
.
Sincerely, r
s'!~J
Bryan S! Reich~l, President
PureChoice, Inc.
Agenda Item
MEMORANDUM
TO: Economic Development Commission
CC: Robert Erickson, City Administrator
David L. Olson, Community & Economic Development .Director
Steve Wentworth, Wentworth Aircraft, lnc.
.
FROM: Ann Flad, Economic Development Coordinatp~
DATE: March 22, 2002
RE; Sale of Flytline Services to Steve Wentworth
The Metropolitan Airports Commission (MAC), at its meeting on February 19, 2002
authorized the execution of a lease with Steve Wentworth to operate Airlake Flytline
Services, lnc. as a Fixed Based Operator (FBO) in the former Flytline Services building.
Steve Wentworth has indicated that improvements wilt be made to the condition of the interior
of the FBO building at Airlake Airport as well as the services that will be provided to aircraft.
Mr. Wentworth, a Lakeville resident; will be present at the March 26 2002 EDC meeting to
discuss his business plan for the FBO operations at Airlake Airport.
Agenda Item
MEMORANDUM
TO: Economic Development Commission
CC: Robert Erickson, City Administrator
David L. Olson, Community & Economic Development Director
FROM: Ann Flad, Economic Development Coordinator
DATE: Marchl8, 2002
RE: Work Plan Goal #1: Educate residents on benefits of C/I
Goal #1 of the Economic Development 2002 Strategic Work Plan is "to inform and educate
residents on benefits of C/I base to gain community support and appreciation for business
growth."
C/I SUBCOMMITTEE
The C/I Subcommittee requested the following information from Lakeville, Plymouth, Eden
Prairie, Eagan, Burnsville, and Woodbury:
• Operating Budget Per Capita
• Percent of property that is tax exempt in these cities
• Percent of land designated for various land uses (ie: commercial, industrial, residential,
public or tax exempt.)
• City and total property taxes on a 250,000 home
According to Finance Director Dennis Feller, Counties must legally have this information
available by March 31, 2002. The Subcommittee will convene in April once these figures are
gathered.
SPOTLIGHT ON BUSINESS
The City Council approved a "Spotlight on Business" program at their February 25, 2002 work
session with the request to feature one to two businesses at each City Council meeting.
Consistent with Goal #1 of the Strategic Work Plan, this program provides a forum to share
information on the benefits of having a business base in the community. Information about
the featured business is presented by an EDC member and includes the dollar amount of
taxes paid by that business.
Staff developed a list of the highest tax-paying businesses in Lakeville. The businesses on
this list will be invited to attend a City Council meeting in 2002. A list of businesses that could
be invited in 2003 has also been generated.
On March 4, 2002, Progressive Rail became the first business to be highlighted in the
"Spotlight on Business" series (see attached memo to the Council.) The program was
introduced by EDC Chair Bob Vogel. Tim Eklund, Vice President of Industrial Development
for Progressive Rail was present to receive a framed certificate of appreciation. Americlnn
was highlighted at the March 18, 2002 City Council meeting (see attached memo to the
Council.) EDC member Jim Emond introduced Americlnn manager Dave Franks and
presented information on the motel.
The April schedule for the Spotlight on Business program is listed below.. EDC members are
needed to introduce businesses at both City Council meetings. Staff will provide the EDC
member with an outline of the information about each to be presented to the Council. The
time commitment includes approximately 15 minutes prior to the City Council meeting to
review the presentation with the cable department staff, and approximately 20 minutes to
attend the Council meeting. EDC presenters are asked to be at the Council Chambers at
6:50 in order to meet the business representative before the meeting begins at 7:00 p.m:
April 1 Verified Credentials -Steve Spang
April 15 Con Agra -Paul Lapadat
Toro -Gary Stone
May 6
May 20 Heat-N-Glo -Dan Schimek
June 3
June 17 Ryt-Way -Glenn Hasse
Attached is a tentative list of businesses that could be invited to participate in the Spotlight on
Business program. This list is based on the largest commercial/industrial taxpayers in
Lakeville.
2002 Proposed Businesses:
Toro Distribution/Fulfor Group Muller Family Theaters
Ryt Way/Haase Properties Fleet Farm/Mills Properties
Grist Mill/Con Agra Car Quest
Toro-Gary Stone. Con Agra-Paul Lapadat
Wausau Supply Strout Plastics
Heat-N-Glo Americlnn
Menasha New Morning Windows
Arden Int'I Kitchens Cedar 70 Business Park
Super 8 Stampings of MN
Verified Credentials Comfort Inn
Scruples Advanced Wireless
National Polymers Rexam
Performance Office Papers Rosemount Office Systems
Motel 6 J&E Manufacturing
Despatch Imperial Plastics
Belzer's DHY
Parker Hannifin Technical Methods
Chemcentral Southfork Shopping Center
QA1 Precision Products Kenwood Center
Lakeville Mall
Proposed 2003 Companies
Airlake Ford
Alcorn Beverage
Brackett's
International Home Foods.
HOM Furniture
SuperTarget
Viking Acoustical
Engren's Market
Mega Stop
Heritage Commons
Applied Power Products
Granse Corp
McDonalds
Performance Tool & Die
Super America
Minnesota Tile Sketchbook
Bernco
Tutor Time '
Cracker Barrel
Pinacle Products
Texaco
Lakeville Retail center
Century Refining
Chart House
MEMORANDUM
TO: Mayor and City Council
...City Administrator
CC: David L. Olson, Community & Economic Development Director
FR: Ann Flad, Economic Development Coordinator,
DATE: March 15, 2002
RE: Spotlight on Business: Americlnn
At the February 25, 2002 City Council work session, the Council approved a "Spotlight
on Business".program to feature and recognize one to two businesses at each City
Council meeting. This is consistent with goal #1 of the Economic Development 2002
Strategic Work Plan, which. is "to inform and educate residents on benefits of C/I base to
gain. community support and appreciation for business growth."
Americlnn has been selected as the next business to spotlight. EDC member Jim
Emond will be in attendance at the Council meeting to present information on Americlnn
and to introduce manager Dave Franks.
Americlnn is located at 17145 Kenyon Avenue in Lakeville. The company has been at
its Lakeville location since 1996. Lakeville Americlnn is highly. regarded in the
Americlnn family for its outstanding service and facilities, and is constantly ranking near
the top in Americlnn inspections. Lakeville Americlnn has 48 rooms and suites.
Amenities include coffee makers in the rooms, hairdryers, irons, cable TV, and guest
laundry. Computer hookups make Americlnn an ideal place for business travelers to
stay. Complimentary enhanced continental breakfast is also provided. The facility is
comfortable, with some suites offering whirlpools and fireplaces, while single rooms
boast a microwave and refrigerator. The experience is completed with a beautiful lobby,
an indoor pool, and spa.
In addition to providing comfortable lodging for travelers, Americlnn plays an active role
in the Lakeville community. Americlnn is very active in the Lakeville Convention &
Visitor's Bureau, and works closely with churches looking for emergency lodging for
people. Additionally, Americlnn rents their hospitality room and pool to local families for
a nominal charge.
The company also provides jobs for area residents. Seventeen (17) area residents are
employed at Americlnn. In addition to employment, Americlnn provides a substantial
..tax benefit to the community. The Dakota County Assessor has assigned an estimated
market value of $1.7 million to Americlnn's building and property, resulting in the
company's contribution of $72,763.00. in local property taxes going to support the City,
Dakota County, .and ISD 194 in 2001. Americlnn has also paid nearly $50,000 in
lodging -tax to the Convention & Visitor's Bureau over the last two years.
MEMORANDUM
TO: .Mayor and City Council
City Administrator
CC: David Olson, Community & Economic Development.Director
FR: Ann Flad, Economic Development Coordinator :
DATE: March 1, 2002
RE: Spotlight on Business: Progressive Rail Incorporated.
At the February 25, 2002 City Council work session, the Council indicated their support
for initiating a "Spotlight on Business" program to feature and recognize one to two
businesses at each City Council meeting (see attached minutes.) This is consistent
with goal #1 of the Economic Development Commission's 2002 Strategic Work Plan,
which is "to inform and educate residents on benefits of C/I base to gain community
support and appreciation for business growth."
Progressive. Rail Incorporated has been selected as the first business to be featured in
the Spotlight on Business Program. EDC Chair Bob Vogel will present information
about the company and introduce Tim Eklund, Vice President of Industrial Development
for Progressive Rail
Progressive Rail is located at 21778 Highview Avenue in Airlake Park. The company
has been in Lakeville since its inception in the fall of 1996, when owner Dave Fellon
purchased four miles of railroad track from Canadian Pacific (CP) Rail. Progressive Rail
is a contract switching carrier which provides business development and customer
service for CP Rail. Activities such as transloading coordination, inventory tracking,
warehousing and outdoor storage have enabled. Progressive Rail to quadruple business
in Airlake Park in the first four years of the company's operation.
Throughout the business community and the railroading industry, Progressive Rail is a
noted leader.. In June, 2001, "Progressive Railroading" magazine recognized the
company for "surpassing customer satisfaction" (see attached article.) The Lakeville
Chamber of Commerce also recognized Progressive Rail as the 2002 Business Team
of the Year at its annual meeting in January, 2002. Owner Fellon and his staff have
made significant contributions to "organizations such as Lakeville Pan-O-Prog, the
Lakeville park system, Lakeville ISD #194,. Trinity Hospital and others (see attached
Lakeville Chamber of Commerce press release from.l/21/02.)
The company also provides jobs for area residents. Twenty-two (22) area residents are
employed at Progressive Rail. In addition to employment, Progressive Rail provides a
.substantial tax benefit to the community. The Dakota County Assessor has assigned an
estimated market value of $3.5 million to Progressive Rail's new 103,000-sq. ft. building
that was built in 1999, resulting in the company's contribution of $87,096 in
city/county/school district taxes for 2001.
Convenient and efficient transportation of commodities supports the success of many
Airlake Park businesses, including Con-Agra, Menasha Corporation, Wausau Supply,
Performance Office Papers, .and American Cast Iron. Companies as far away as Duluth
and Winnipeg also use. Progressive Rail's facilities to transport commodities, unload
them in Lakeville into trucks, and transport them to multiple locations.
Progressive Rail has a total of 84 customers, including 3M and Cargill The company is
continually working to develop new relationships and bring new businesses to Airlake
Park. Tim Eklund will provide additional information on the company's efforts to recruit
additional business to Lakeville.
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As branch-line entrepreneurs, regional and short-line executives are working even harder to identify and satisfy evolving
customer needs, which often requires the execs to be more flexible than their Class (mainline-marketing counterparts when
drumming up solutions. Today's branch-line shippers - similar to most companies -are seeking tighter delivery schedules,
lower rates and transportation tailored to their growing demands. Ultimately, abusiness-as-usual approach by small roads
doesn't cut it -unconventional ideas and marketing strategies do. Many regional and short-line execs are taking this
business-building challenge to heart, bending over backward to delight customers, rethinking tried-and-troe marketing
measures or fostering private/public infrastructure-boosting partnerships. With more than 500 North American regionals and
short lines, the approaches are many. Progressive Railroading's 4th Annual Short-Line & Regional Business Development
Guide presents but a few examples of small roads walking the talk. - ~ e F F s Ta ~ ~
.
, .
~ ~ _
r~=.~- much upside potential?"
~ - ~ _ For nearly 15 years after high school, Fellon and his
brother ran a company that renewed rail for various
f you go to railroads, helping Fellon establish rail industry
Progressive Rail contacts.
Inc. (PR) in Lakeville, In September 1996, he formed PR as a contract rail
Minn., to meet President Dave Fellon, don't look carrier in Lakeville's Airlake Industrial Park.
for him in his office. To entice the park's tenants -many of which
Search the short line's yard, where Fellon switches hadn't used rail before -Fellon completed studies
cars daily - in the rain, snow, cold or heat. That's comparing those companies' current transportation
where he says he belongs, although it's not because he modes to rail, showing potential cost savings and the
enjoys the rigors of a switchman. proposed reliability of his fledgling railroad.
"I want to be in touch with my customers every He also pounded the pavement, meeting or calling
day,' says Fellon. "[Byswitching cars] I can talkto plant potential customers, and checking back in several
. managers or forklift drivers." months if his marketing pitch met rejection.
Customers phoning PR's office probably wouldri t "I've been told'no manytimes, but you have to fol-
reach Fellon right away, either, but they can count on low through," says. Fellon. "You have to have a good
talking with one of his staff of nine. There's no voice .plan and do what you sayyou're going to do."
mail system allowed at this short line. Today, he's still conducting mazketing studies, call-
"I hate it, it's the rudest thing out there," he says. "1 ing companies back after rejections and staying in
• want to bring the personal touch to customers. The touch with customers - even in winter, when some
standazd is to blow customers away and do more than companies have no rail business, such as a beer dis-
• you're asked to do." tributor, because frigid temperatures can ruin the
That personal approach has helped Fellon build his product.
• four-mile short line from an annua1700-carload busi- He believes a good relationship with Class I partner
ness in 1997 to an anticipated 4,000-carload operation Canadian Pacific Railway - as well as partnering with
in 2001. a bank -are keys to success.
He isn't relying on a college degree or business But partnership is a two-way street: To keep his
school training to grow PR; he depends on a lifelong bank loans in good standing, Fellon sends his loan of-
railroading enthusiasm -and. perseverance - to win ficer a weekly marketing update showing new business
over customers. leads and follow-up results on previous leads.
"To do something like this, you have to put your "Everybody needs a win, and this gives a loan offs-
heart into it, to have a passion for the industry," he cer a chance to go to their supervisor and look good,"
says. "Do you know of any other industries with this says Fellon. "But after obtaining a loan, theres a short
IO
PROGRESSIVE R.4iLROHC~
`
honeymoon period that foIlows, and that's when you have to e Aa;"~ r,
hustle.,, ~e
His idea of hustling includes buildingtwo sflos so afly-ash ~ '
m i
producing customer has more storage space; constructing his ~ ;
own warehouse to help other customers' storage needs; a1~d
building turnouts or sidings for potential customers who may G j ong-haul traffic may be a
balk at the cost. 1~ regional's bread and butter, but
"I ask customers: 'If we build a siding for you and it costs short-haul traffic is the jam that can
$250,000, will you make the jump: (to rai1J?"'says Fellon. "`Sot sweeten business.
build it and then I have to perform." With that in mind, 545-mile Provi-
PRbuilt asiding for beer distributorAlcorn Beverage Co.i denc.e and Worcester Railroad Co. (PWRR) is developing a
afterwards, an Alcorn official told Fellon the company never sweet tooth by renewing its focus onmedium- and short-haul
would have built it. lanes. The key is consistent, timely service.
"Dave will do anything for you, he's in contact all the time "Go od service doesn't cost more, it costs less, because
.and asking what he can do for us," says Alcorn Operations you're making better use of the asset, keeping yazds and trains
Manager Butch Segna. "He's here and he's local, .and I can moving," says PWRR Mazketing Director Frank Rogers.
wave to Dave every day on the track." "-Price should not be the only driver when a customer
Fellon also believes it's important to be a good citizen: If he makes a modal decision. If our collective service is excellent, it
hears that a pazk customer needs corrugated boxes or forms, need not be."
he passes the lead on to park companies that produce those Such an approach enabled the regional to nearly double its
products. Listening to customers is paramount, too. inbound steel business over the past three years, with most of
"Before Dave, we wouldn't work with railroads anymore the growth on moves within 400 miles.
because they were unresponsive to our caz switching needs," P4VRR for three years has worked closely with Canadian
says Dick Rodman, production manager for corrugated paper National Railway Co. to divert tonnage on primary and fin-
manufacturerMenasha Corp. "Dave said he would change fished. steel products from truck to rail.
things and upgrade the rail, which he did, and now heswitch- The results: Receivers are able to manage inventory on a
es our cars any time, 24 hours a day. And now we do more jus in-time basis, the Class I realizes better asset use due to
shipping by rail than by truck." ~ t~
E ~ iiitlg faster, and the regional gains a new market.
To Rodman, Fellon is helping the industrial park grow be- PLVRR also for the past four months has been working with
cause he understands marketing: "He runs his company the t;SX Intermodal's overnight service in a short-haul lane to
way we market ours, and that's the way we want to do busi- r~omplement both railroads' land-bridge traffic.
ness," says Rodman. Strengthening partnerships with lazger railroads has been
Fellon will need to rely on that marketing savvy to build crifical because "you can have the greatest idea in the world,
business on the former Minneapolis, Northfield & Southern bait if your connection doesn't buy into it it doesn't work,"
Railway "Hi-Line," which runs through southern Minneapolis, Rogers says.
Bloomington and Richfield, Minn. Historically, railroads haven't been able to compete with
PR tan. 31 signed an agreement with then line owner CPR, trucks on rates for short-haul lane moves. That's changing
under which the short line leases the right of way and owns through strengthened Glass I/regional partnerships.
the track. By teaming with CN and tapping the Class I's scheduled
PR has started line upgrades, which will take two to three .service, PWRR is able to offer timely, consistent service in what
years to complete. had been atruck-dominated lane, and opened a new market
CPR officials believe Fellon's Airlake success may translate fcr the regional via short haul..
to the line; to market it, Fellon plans to work with local real- "Everyone likes their long-haul and high-revenue traffic,
tors, and already is calling on the line's small businesses. but .that's not where a lot of the business growth is," Rogers
"Sometimes, you get interesting reactions to their thoughts says.
on rail, but you have to keep trying," says Fellon. "Some cus- "Most of the growth is in short to medium haul -from 100
tourers still are in love with their trucks but we have to give to 600 miles.... This traffic need not be viewed as marginal, but
them options-with high fuel prices and the difficulty in find- as an area of significant, profitable growth for the railroad
ing drivers, we may have an edge." industry."
It's that edge that drives Fellon to work 15-hour days, seven .Plus, short-haul lanes enable PWRR to diversify its traffic
days a week. base and provide some insulation against economic down-
But he doesn't pin the short line's success on himself; he turns that curb long-haul traffic.
credits the contributions of his employees and CPR, and town The regional has determined that short-haul mazketshaze
officials for supporting the industrial park. gains can offset reduced traffic effects tied to the sluggish
"Anything here can be duplicated in any industrial park, it's economy.
not a secret," says Fellon. "You just have to really like the busi- "It's net. good to have all your eggs in one basket," Rogers
ness and believe in it" says.
- JEFF STAGL -LAURA J. MERISALO
f
2001
A enda .Item
9
ME11~4RANDUM
TO: Economic Development Commission
CC: Robert Erickson, City Administrator
David L. Olson, Community & Economic Development Director
FROM: Ann Flad Economic Development Coordinat
.DATE: March_21, 2002
RE: ` Work Plan Goal # 3 Encourage investigation of critical business infrastructure.
Goal # 3 of the 2002 Strategic Work Plan is to,encourage investigation of critical business
infrastructure.
INTERCHANGE STUDY
Several meetings have been held between Springsted, lnc. and Gity staff to complie
inforamtion on various funding sources for Lakeville's interchanges. When this information
has been compiled and analyzed, updates will be provided to the EDC.
HIGH TECH SUBCOMMITTEE
At their September 26 2000 meeting, the EDC authorized the formation of a High Tech
Subcommittee #o explore the development of a High Tech Business Park. Development of a
High Tech. Subcommittee is consistent with the EDC's economic development strategies, and
specifically addresses the following:
1. "Research and identify fiber optics and other emerging technologies," as identified in the 2000-
20Ui Strategic Plan for Economic Development....:
2. "Encourage additional office parklbusiness campus development to achieve desired business
mix,"'as identified in the 2000-2001 Strategic Plan for Economic Development.
3. ' "Attract and retain employers that will utilize the.>skills of residents," as identified in the 2000-2001
Strategic Plan for Economic Development.
4. , "Encourage: investigation of all potential upgrade opportunities in critical "business
infrastructure"..elements -phone, data, and other infrastructure, to promote positive outcomes
for long: term" as identified in the 2002 Strategic Work Plan.
Commissioners Bob Brantly and Dick Miller joined Telecommunications Commission
members Doug Thompson and Robin Selvig to form this subcommittee. The committee held
their first meeting on April 3 2001 and-identified three goals as listed below:
1. ` Develop a'High Tech Business Park (HTBP)
2. 'Educate the business community on telecommunications options
3. Encourage additional telecommunications services to support Lakeville's existing business
The High: Tech Subcommittee will be convene by mid-April to review the status of their'goals and
determine the next steps for the subcommittee to undertake.
Additionally, at the January 29,.2002 EDC meeting, Commissioners moved "to direct staff to
.pursue E-commerce Certification with the assistance of Frontier on the basis that it is
consistent with Goal #3 of the City's 2002-2004 Strategic Plan for Economic Development
' (see attached minutes.)
Responses to the survey questions are being finalized and will be delivered to Margaret
Olson of the Department of `Trade & Economic Development in April Staff. will. work with Ms.
Olson on the coordination of an event at which the City of Lakeville will formally receive E-
Commerce Certification. This event is tentatively anticipated to be .held in June. at the
Lakeville Area Arts Center (see proposed event outline, attached.)
Frontier is also coordirtiating an educational seminar for community leaders which is designed
to educate community'leaders on technology terms and innovations.:. They have retained Bill
Coleman of. Minnesota. Technology (formerly of the Dept. of Trade & Economic Development)
to present this seminar on April 30 2002, EDC members and other community leaders will
be invited to attend.
E-COMMERCE CERTIFICATION EVENT
JUNE 2002
In the very early discussion stages.
Purpose:
To promote E-Commerce in Lakeville and assist in recruiting high tech
businesses..
Events:
• Speaker on "What E-Commerce Means to Lakeville"
• DTED will present E-Commerce Certification
• Demonstrations} by Lakeville business that use technology in a neat or
innovative way
• Other, to be determined.
-When:
June, 2002.
Location:
Lakeville Area Arts Center
Attendees:
JoAnne Johnson, Citzens/Frontier lobbyist will assist in getting politicians there
(which will help make this a highly publicized event.) Some of the people she is
thinking of are:
Gov. Ventura
U.S. Congressman Bill Luther
U.S. Senator Mark Dayton
U.S. Senator Paul Wellstone
U.S. Senate Candidate Norm Coleman
State Represenative Mary Liz Holberg
State Senator Pat Pariseau
DTED Commissioner RebeccaYanish
Administration Commissioner Fischer
Linda Finley, Director of the Information Superhighway
Other attendees will include the City Council, EDC, the Telecommunications
Commission, the Chamber of Commerce, local media, ISD 194, and ISD 192.
TV.
'MEMORANDUM
TO: Economic Development Commission
CC: Robert Erickson, City Administrator
Ann Flad, Economic Development Coordinator
"FROM: David L. Olson, Community & Economic Development Director
DATE: March 22, 2002
RE: March Director's Report
Dakota Electric Association -Partners in Progress Event
Mayor Bob Johnson, Council Member Rieb, Bob Erickson, Ann Flad and [attended the annual Partners
in Progress event sponsored by Dakota ElectricAssociation (DEA) on March 7 2002 in Eagan. This
DEA sponsored event is held to high-lighf and recognize the development achievements of the cities in
Dakota County that are served by DEA. Attached is a copy of the published brochure that was distributed
at the event.
As indicated in the brochure, Lakeville issued building permits with a total valuation of $138,867,465 in
2001 which was the highest of any city in iJakota County. The total valuation for commercial and
industrial`building permits issued in Lakeville in 2001 was. $28,497,465 which was second only to the City
of Eagan which issued permits totaling $67,509,800. This event and report provides an excellent review
of the total development activity for previous year`in Dakota County.
`Treating Customers tike Gold'
This,customer service training for City employees was conducted on March `6, 2002 at the City Water
Treatment Plant. The training was held in two half-day sessions that allowed approximately 165 full-time
-City employees to attend eitherthe morning or afternoon session. The training seminar vvas facilitated by
Petra:Marquart Customized Training"Coordinator for Hennipen Technical College.
The EDC was represented by members Vogel, -Erickson, Matasosky, Pogatchnik; and Schubert. Several
local business people also attended. Please see the attached letter from Colleen Ratzloff LeBeau. The
consensus of nearly all that attended the training: was that it was helpful and applicable to all City
employees and business people alike: Funding for this training seminar was provided as part of the City's
Strategic Plan for Economic Development. I wish to extend a special thanks for those EDC members that
were able toattend this worthwhile training seminar.
Updating Data Base of Local Businesses
City staff is in the process of updating its data base of information on local businesses. The City mailed
721 postcards to known local businesses requesting verification or updates to the information that the
City has on file for that: business: As of March 15th,: the City. has received responses from 339
businesses. Staff will continue to make the necessary changes to the data-base as more responses are
received.
Jerry Ratzlaff • Colleen Ratzlaff Labeau
Phone (952) 985-5959 Fax (952) 985-5353
~~r~,>w. ra tz la tf h comes. com
omen, Inc.
March 14, 2002
City of Lakeville .
20195 Holyoke Avenue
Lakeville, MN 55.044
To: City Staffand Administrative Departments
Re: Customer Service Seminar
To All participants of the seminar
Al<<ougr, this letter comes later than I wanted it to, it still comes with much appreciation.
for the invite to attend the seminar. The speaker Petra Mazquart was an excellent pick
and the material itself was without a doubt exceptional.. I just wish I had. a little bigger
company myself, because I would have her speak to our employees.
The day was a "breath of fresh air" as one would say. Not only was it exciting as a
taxpaying homeowner that resides in the community, but it was also encouraging as a
business owner to see that Lakeville has some foresight that many other communities that
we work in do not. Petra hit everything right on the nail, and I felt like for Lhe most part,
staff~:ras embracing ±he seminar with an ope.^. mind.
The most encouraging part is that I, myself, have always felt like we were not necessarily
viewed as the "customer", but someone who "just had to follow your rules". I was
encouraged that this attitude may begin to change, and it needs to.
A few days after the Seminar, I needed some information on atoning/planning issue. I
was pleasantly surprised and pleased on how courteous each person I had to deal with
was and how it seemed that the employees themselves were much. more pleasant with
each other than I had witnessed in the past. That few minutes that I was at the city made
me feel that the seminar was tune well spent and a benefit to the. taxpayers and business
community.
20730 Holyoke Ave. • Suite 48 • P.O. Box 1135 • Lakeville, MN 55044
Keep up the good work. I can now say I am proud to be a resident and business
community that is on the forefront of how to change with changing times.
Thanks again for the invite!
Sincerely,
Colleen RatzlaffLaBeau
Ratzlaff Homes, Inc.
Resident of Lakeville
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~~s~'~
March 18, 2002
Ms. Ann Flad
Economic Development Coordinator
City. of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044-9177
Dear Ms. Flad:
I am pleased to announce that on March 18, we officially changed our corporate name from
UtiliCorp United to Aquila, Inc. [pronounced ah-KWILL-uh]. Along with this change, the names
of our operating divisions, including Peoples Natural Gas/Northern Minnesota
Utilities/EnergyOne, will also. change to Aquila.
The past few years, you may have known us by as many as three different names - EnergyOne,
UtiliCorp, Peoples Natural Gas and Northern Minnesota Utilities. Adopting a single name for all
of our operations will help eliminate the public confusion and operational complexities. resulting
from multiple names in the marketplace. A single name also will best leverage our resources in
building and strengthening Aquila to better serve you. The Aquila name has been part of the
UtiliCorp family of businesses since the early 1990s and until now represented only our wholesale
energy business.
The transition to our new name will begin with the name and logo appearing on your bill and
various communication materials. The new identity will later be applied to our signs, vehicles and
uniforms.
While you will notice the name change, we want to assure you that one thing will not change -our
commitment to providing you with safe, reliable energy and quality customer service.
As always, we look forward to working with you. If you have any questions regarding our name
change, or if I can be of service to you, please do not hesitate to call me at 1-800-891-0890.
Sincerely,
Terry Erick
on 2^
Director, Economic Development
February 20, 2002 ~ ~ •
Gary Janisch '
H.J. Development _
P.O. Box 110
Delano, MN 55328
Dear Mr. Janisch:
Congratulations on your successful development of O'Connell Square and Elk River
Crossing, as noted in the January 21, 2002 Minnesota Real Estate Journal. It appears
that you have developed a track record of developing quality retail .sites in the suburban
Twin Cities metro area.
We noted with interest a statement in the article indicating that "Lakeville could be the
next target." As you are aware, Lakeville is a rapidly growing community with a
population that is projected to surpass that of Burnsville and Apple Valley in the next
eight years. Lakeville is also projected to have 75,000 residents by 2020, making it the
largest city in Dakota County (Metropolitan Council Population Projections.) However,
Lakeville is undeserved in the retail market, as noted by a 1999 community survey
which identified retail establishments as one of the primary types of development
desired by residents. While the Avalon Group's TimberCrest at Lakeville
retail/office/commercial development and other proposed. retail developments are
beginning to fill the need, additional retail development opportunities still exist in
Lakeville.
believe you will find working with the City of Lakeville on development projects to be
very professional and efficient. Surveys of all developers who completed projects in
2001 in Lakeville indicated an extremely high level of satisfaction with the level of
information and responsiveness of City staff during the development process.
look forward to working with you as you develop retail/commercial projects for the
Lakeville community. Please feel free to contact me at (952) 985-4421 with any
questions or to discuss your plans. Thank you for your interest in Lakeville.
Sincerely,
David L. Olson J
Community & Economic Development Director
CC: Robert Erickson, City Administrator
Ann Flad, Economic Development Coordinator
City of Lakeville
=)19 I/tilvnkc~ Ai~eftuc • l,ukei~illr-, rLI,N 55(1-1-1
Plrnttc' (`->i' tl~`'5..-/:a(10 • Ft.Y (~li?) 9,ti'~-4~9y 9 ?c~;~.luk~~~i ilfr~.!utt.tt,~
~
GE Capital
~ ! Lt~u on er ;Fri ~~ncinn
h ~~t,~r.~a`r~ Lake Bt~~ w~~d_.:57~r . ~ir7
r ~,c ti .~?i
March 2002
Dennis Feller
City of Lakeville
20195 Holyoke Avenue South
Lakeville, MN 55044
LOW RATE FINANCING FOR MANUFACTURING COMPANIES
Dear Uennis:
With the downturn in the economy hitting the manufacturing sector especially hard, now is the time
to assist manufacturing and processing companies with low-rate financing. Industrial
Development Bonds (1DBs) are a federal program oftax-exempt financing for manufacturing
cor.;pa~~ies to uivest in capital assets lbwidings, iznd, .quipment) ana c!-eate jobs.
Sil~eti t_~l caapital is a direr_t bond-nuyer of 1DB: the°_%oet ~~t Issl(ing_t11Cs~ hon~:?s iar less than
~-~c~rklns~ Through a bank or underwriter.. Becausr our costs are, sF_~l~~,irantiy lower, our minimum
bond amount is only $1 million
In addition to IDBs, GE Capital finances companies using traditional equipment leases and loans,
rea! estate mortgages, SBA loans, and USDA Rural Development Business & Industry Loans (for
projects located in municipalities with a population under 50,000).
.Please contact me at (952) 897-5632 or at david.bul-geca ita.cum to confidentially discuss any
projects where I can be of assistance. You can also check out our W W W site:
www.gepublictinance.com
Sincerely,
GE CAPITAL CORPORATION
David Burd
Vice President /Senior Account Manager
-
e •
I~h~ ~~iinnesota Labor Market ! 1~~ lower in ?U01 lh,ln
hldex .sn3ppt~d3 frnir-month t3ilspilt iii _ pre~iousl~ thought. ~ 14s zooo sec 134.0
1992= 100 2001 Jan 134.3
11~'C~n1I)rl~, LItCr~`aslnt; fty U.~~ ~teR'enl l0 ~ )7PCC111~1E'I'S Ulldll~UtiiP~I 140 Feb 133.6
l~E~i i tI1hP~ ~ hike 1t'a5 p0«~crcd ~ 1'J3gC 3110. ti31a11' 135 Aar 130.3
b~ 1 ~h3i , ul~:rc~a r' in seasc~n311v ern ~l~1~~menl tot<11 ~~~3~ try 129.0
1 ~ 130 Jun 126.6
alllu5f~'C~ ~tA'l'C3;r TV~l'el<~}' lll~llllLtaCTLlr ~ d0\Vn pC`rCellt h~11n 125 Aug 126.8
irlg hours. I li~,hc~r i3rlur}~ hours ~ 13st D~~cemher. (ln 3„ sep lzss
720 Oct 124.0
reversedthc indcs's d~~~ti~nwarij spiral !annual 3vcl~r;~~ 1~.1si;, oec iz3s
175
despite die U)th <unsccuti~~e monthly ~ e~nplut~ment dipped h~~ 110 ofochgFrom
drn ~ IP 9t'a~llna~ll hjlllsled ~~VaRP and ~ L). ] terCellt iIl 2111)1 Dec Dec Dec Dec Dec Dec Month Ago 0.4%
I i 96 97 98 99 00 Oi Year Ago -7.6%
Sala(l' ~'mp~~t;[11r'nC anCl a Silk;11~ I1Si 1n ~ rilnlplr('d ((1 '(H)t).
a~{)u~tc'd Inlllal C~aOrls IOC Ullt'111p10~'- "1'h15 VC3S Che Source: Minnesota Department of Economic Security,2001.
meat. 'I`hc U.S. 1xilxJr?Vtarket index first drop 1n _ r ~ p
` „
rebounded inure su~origl}~ than t)Ie a1uIU31 aver- ~ ~ _ ~
Minnesota index; in December. incre~ts- 'age payntll
ingl.0 percent. The state inilt~~, empluvment
which was te~~ised This tnunlh tI~ in \-T111nrsU[;I since' l9N? anal onl~~~ d1e nl,Inufacturers sink thr, sector bep~~~n
inchtde annual r~~~~i~iun5 in cmplia~~- eighth tinlc ibis }its h~lltprn~~1 in the ~ ~iuuiping ?mrc rllau ~~ear ,~fu1.
..meat data 1i~r 'l)OU and ?DOl , nu~~~~ last ve.u~s. ~ ~~djustrd 1lanulacturing [?arnin~s ,Il~u
sho~ti~s dl.rt Minnesota's ccnnunr? firs[ ~ rcc~trdc~ii one' ~tf its l~iphr;cst iisluric3l
wert~ inlu dov~~nturn back in Fef~ruatti Adjusted }IelEr'LVante<1 flds increased iunl}1s in Dere~nlhe7, inrcasiug b~~
2001. 1~h~~ ,irn~,~do~~n ciln(inued for only the serouil tinu~ in the 1x51 lll perrenl <<~ ~b?1.~5. I~'3cRtr~~ rarnings
thirni_ir;li Jun but appeared [u he stahi nuntths in Dereml~er: up ;.U percent to haVCll~t been as High sincr I~cbru3n',
lizang iu,~ul!:' and ~~~_.gust. "('tic f3lkntr ~ l~k,l;'6, 11ut still about ~(l Itercent ~i~.t~~~n ,Illuthrr hupclul sif.;n that nlanut3rnu~
from Septeml,er's terrorist attach i from a yr,ir 3gr. ~~~is h<i~~~ t~,ir~ic~rl tr ing h~~~ pit It~ast hc~ttr~nle~i ~1~_i[ .1n~1 nl,t~
reverberated through !~tinnesot,I~s rehiiulld three ru sip nuulrlh he[ure iub b~~ poised lur ret~ound.
economy dutii;;; flit- tall. du~;ing th~:~ gru~~~ih dnrin , past n~it~s~ions. f;iit th~~~~
index down prim to Dca_ mhcr. gnu ~ may be lc~s Icli3bl~~ u; .ui uldic~uu; ~~t ~~':+~ou~ilh' 3diustr~d ~1linnesrlla
January 2001, ~tili~me:,nt<I's index: has labor m~t!1<e~ changes nu~~. Ihan in rhr B7_tsilless [ncorporalions ~jr~tf,i,r~~i cnn-
slipped 8.0 prri ~~nt ~:+:Ilil~~ the 1!.5. past given th~° lat~;c n?i~r:~tir~u ut juh i~1rr,71I1~~ iu Dr~ceuli~~~r, [tilling 11~; L.-
indeR is dorvtl ;'.U perceur. related ,Ids tet th~~ ~~~ch. l~e~rc'ent. Ltrre~nih~'r~~ drop, I~~ ~1;"I .
ic~er~,r~1 ~'\~u~~cnthcr'~ 1-1.~ pcrcrn(
5eason~;lh~ adiusfF'd 'tVtge and (11e i~linnesoia P1n~chasitlg ~,,1in. i~. tu~al u. 1 ~.1.i(~ bu~iue~~s incur
.Salary Er11}Jluy-ntent declined f~~r the ~ 1tilanagers' index (Pull) re~nlai~lr~~l p~1r~~tiuF1~ ~~~erc rr~xlr~ied in 'tlO1 nr ,.r,
10th cons~~cuU~~~~ me~~ruh in De~cclnher, sr<llicd 3t X1.1 in [k~cE~riil~i~r, Cllr s,in,~e p~~rccnt ir~~.~rr (lean in ~iH)l~. Last
sluinhi!?g b~~ tl_~ percent. _le~h losses ~ If~~~E~l ,1; ~'ovr~ml~er. Anuu.il i~~e~r,ige = ~~~~:ir'~ h1t31 ~~3s thy, lu~~c~t ~in~~t~ I~?~~~f.
were sere u1 ~~'ru, ~~irtuall~ ill irulus_ rnanu~acturin,~ ~~mplu.~ntcnr tell I~~~ a t~
ties wide icl~til u,idr. ~[~CI'U, ~e~r~,ct,s 1~~'rc.ent NISI ~e3r, thr siaih ttursf E1ci ~ ~[~hc <<i_util~~~r ~~f Rt~Sidential d;uildin;
3114 dUrd}tlr~ }~~ll_ilj5 f113nUI3Ctlll In6~ i'llt h1rn1,1nC(' ~1nCt' 1~)5U. Permlis tlllflnn fta~'nlbcl' 1C'~~ prl
tits:,: !ht~ m~1si jobs. Revised entplov_ Beni cump~Irt~d to th~~ Ixrwi~~u~ umrth.
~Ch~~ 1.~~ pr«cn~ uunp in .iilinstccl h~~~iilcnlial building pci mi!s wt ~r, np
m< <it d,~t3 ~nint~ ~~m~r1lu~~il1~ nt „r~_nvfll a~el~i~,c~ ~~~c~ckh ~tilanufacturin~ (louts ~ . ~
Was sli~,!tf~~~ ~U~ui«er in ~tt(lU artd sli«ht_ ~ ~ - ~ percent in ~(1UI romp.ur~i t~~ 7(l~lll
~ushrd wrekh~ hours ii ~ t~1 .;~1.`i. ;hc
l f d~spi,c ~tlO1~ d~~t~rior,l~ing Toll n„Irl:<~1.
hi_;ht~st nulnthl~
14s zooo oec 138.1 -~ttr~ ~inrc ,~i3~~, S~_~,IS~_1n~i11~~ ~t~ljustr~l initial Clauus
1992 = 100 2001 tan i 39.4
140 Mar 138.5 .1llr l helCl'Ilt fOr i)JtelllplOVlJlent (ienejltS tUli~
135 Apr 136.4 hl}~l', ~~'hIC}i r3fl~s ' VV~~~rC Up '~11gh11~' h~1111 ~~ill'~.`IllbC~r,
May 135.1
130 Jun 134.6 ,I> 11111' Ol IhE' hlSrl~- InCll',iS111~ b1' Il.i pl'CCenl (~t (~,~?5 In
1ul 134.9 '
125 Aug 133.9 r~ti[ nl[?n[hlr" Ialnpj 1~CCt'mbrr. Unddln~te'fl Inlh~l~ CI31111~,
Sep 131.6
120 Oct 129.0 111 fhc' 7t)-V~t ll~ hl~- ' On un dn[U1~71 ,I~ i'~C~14;e' b~ltilti, 1b'Prr
Nov 128.4
11s oec 12x.7 u;rv of the d,it3 ! roaghlti- ~U pr~rcr~nt highw~ in ~U~11 lh~~n
ti0 °hGhgFrom ~r'lles, lti Cane OI lli ?lltl(l In ,ti~~~t''l'lllbl'r lull Dt'lC'm~~E'I~,
Month Ago 1.0%
Dee Des Dec Dec Dec Dec Year Ago -6.1% dlr' Ilrst ~irlll!'r th_ t~\-'fir tlt< ~'C'<Ir I.IIC illplt~'tl I~~ ~i~u?Ilf
96 97 98 99 00 Ol 1
i,;ll` IUI Ih(' St.1I~' ~ 1~C'rlt'Ilt hlr;hcr, ~llg~'e>llli`; C~,3I ~,1V'
Source:MinnesotaDepartmentofEconomitSecurity,2001: ~ ttlis, ~Vhl~~.' nC~i ilr'C~lflin~, h<1~~~ ,7( ~r',l~<t
~ - s(npped ~~creleraiing.
~3~ b' C?avr Serf
~ g Minnesota Employment Review February 2002
Monthly analysis is based on unadjusted employment data.
• • . ~ ~ ~
showed a gain of 4,400 jobs declines, resulting in a net drop of
over the year, but this is 3,400 jobs, to 92,500. The largest job
MlrlfleQfJ0I15-StPput :merely the result of an abnormally low losses were sustained by trade, with
MetrOpOlltan StatlStlCal Area (MSAj ~ level in January 2001. the biggest portion of these in the
other retail trade category. Services
Employment in the nonfarm, payroll ~t1ILl1'~1-SUpertorMSi~; also lost about 1,000 jobs, three in five
sector fell again in January- to of which came from private educa-
1,706,500. Over-the-month em to :Partly for seasonal reasons, partly due
P Y = tional services, essentially the result of
ment in all the major industry groups to the currentrecession, nonfarm seasonal factors. Seasonal fluctuations
fell, but b far the lar est dro m ~ employmentcontracted by 4,500 jobs
Y g P ~ also affected state educational services,
numerical terms was in trade, which in January, to ll2,300; most of the causing a fall of 600 jobs. In the 12-
had 15,400 fewer 'obs than in :losses occurred in construction,. busi-
1 month period, employment growth
December. About 90 percentof trade ness services, private social services, slowed to -0.6 percent, recovering from
job losses were concentrated in retail- retail trade and state government a 1.4 percent drop in December.
ing, most notably general merchandise :educational services. Over-the-year
stores, apparel and accessories, eating employment growth declined for the
and drinking places, and other retail 11th month running, this time by 1,500: Fargo-Moorheadll~
stores. Services shed 12,500 jobs, ~ jobs, mostly stemming from losses in '
especially from personnel supply ser- mining and durable goods manufac- ~ Total nonfarm employment fell by
vices (-3,300) and private higher edu- ~ taring; On the plus side, private 2,200 in January, to 103,400, with all
cation establishments (-3,700). :hospitals added`400 jobs, and state the major industry groups registering
Seasonal factors were behind the :government education added 500 jobs. ' .job losses, after rising by 2,900 the
employment decreases in both con- previous month. The largest drops
struction and government educational RochesterMS~~ occurred in trade {-1,1Q0a, in both
services. Contributing the most to the wholesale and retail subsectors.
year-on-year job losses were durable All major industry groups lost jobs in Retailing also lost jobs,. with losses
goods manufacturing industries, such :January. The month-to-month drop spread throughout its main com-
as fabricated metals, industrial ~ in the employment growth rate, -1.5 ponents. Construction and mining
machinery and equipment and elec- :percent, was the steepest in this MSA employment shed a combined 450
tropic equipment. Among the non- ~ in six years. On the other hand, year- jobs. However, for the second con-
durable goods manufacturing indus_ to-year job growth was virtually secutive month, 1,750 more jobs were
.tries, the heaviest lossesoccurred in unchanged from the month before, created than lost, In thetrade sector,
paper and allied. products, printing with losses in durable goods manu- the most significant gains were seen
and publishing and rubber and rnis- ~ facturing and retail trade being offset in eating and drinking places; in
celianeous products. As a direct result by gainsin,unsurprisingly, the robust services, the largest gains occurred in
of the massive airline layoffs after the ~ health services sector. ~ the health subsector.
September 11th terrorist attacks, trans-
portation industries lost 6,400 jobs St QOUd MSf~`; Grand FOrks
over the year. In the same period,
general merchandise stores shed 2,600 ;kept for manufacturing, which
addeda paltry. 100 jobs, all other main Nonfarm employment in January was
jobs, and business services lost 10,100. 48,400. Less activit in all of its main
State government educational services 'industrial sectors saw employment y
industries causeda slowdown in job
growth, to -2.4 percent, the eduivalent
4 nniv 4 of a loss of 1,200 jobs. Among the
Source: N
Current 3 us 3 hardest hit were trade, entirely in its
Employment. ~ 2 retailin com onent, and overnment
statistics, s 2 g P
Minnesota ~ ~ ~ services, stemming largely from state
.Department of
Economic v 0 ~ government educational services. in
Security, 2002; ~
current ~ the year to January, employment saw
Employment a -1 -I the first positive growth in six
statistics, _2 -2 months, thanks to eating and drink-
Bureau of Labor
statistits,us. January January January January January January
Department of 97 98 99 00 Ot 02 ing places, other services and state
Labor,zooz. government education.
by Tien Cung
oven a=year percent c arge
6 Minnesota Employment Review February 2002