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HomeMy WebLinkAbout11-26-02 City of Lakeville Economic Development Commission Regu ar Meeting Agenda Tuesday, November 26, 2002,. 6:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order. 2. Approve October 29, 2002 meeting minutes. 3. Strategic Plan -progress and update 4. Strategic Plan Work Item: Educate residents on benefits of C/I. A.) Update on engagement of Himle Horner 5. 2003 CDBG discussion 6. Business Retention Program -development and timeline 7. Bi-annual Report to Residents on Economic Development 8. Director's Report. 9. Adjourn. Attachments: 1. For furniture retailer, HOM is where the highway is. Star Tribune, Nov. 18, 2002. 2. Boise Distribution Center i Lakeville. The Developer -The E-Newsletter of the Economic Development Association of Minnesota. November/December 2002. 3. Woodbury interchange should spur more growth. Minnesota Real Estate Journal, November 11, 2002. 4. Gilb Site/CDA Housing Project Funding press release. 'F~ u~. _ - - ~ City of Lakeville Economic Development Commission Meeting Minutes October 29, 2002 Marion Conference Room, Lakeville City Hall 20195 Holyoke Avenue Members Present: Comms. Emond, J. Erickson, Pogatchnik, Schubert, Tushie, Smith, Brantly, Miller, Matasosky, Ex-Officio member Todd Bornhauser -Executive Director of the Lakeville Area Chamber of Commerce, Ex-Officio member Robert Erickson -City Administrator. Members Absent: None. Others Present: Staff: David Olson, Community & Economic Development Director; Ann Flad, Economic .Development Coordinator. 1. CaU Meeting: to Order. Vice Chair Matasosky called the meeting to order at 6:00 p.m. in the Marion Conference Room of City Hall at 20195 Holyoke Avenue, Lakeville, MN. 2. Approve August 27, 2002 Meeting Minutes. .Motion 02.17 Comms. Smith/J. Erickson moved to approve the minutes of the August 27, 2002 meeting. Motion carried unanimously. 3. Strategic Plan Work Item: Inform residents about benefits of C/I Development: Scope of Services and Timeline for Communications Plan efforts with PR Firm Himie Horner. As requested by the EDG at the August 27, 2002 meeting,. staff worked wifh Mr. Todd Rapp, Senior bisector of the PR Firm Himle Horner to develop an engagement letter that defines the scope of services and compensation: for the C/I Communications project, reported Mr. Olson. According to the engagement letter, the final work product for this project will be a Communications Plan that will be consistent with the Strategic Engagement Plan that Mr. Rapp presented to the EDC at the August 27, 2002 meeting. The plan will include key goals, suggested messages, a menu of strategies that can be implemented, and preliminary budgets and timelines for each strategy. Mr. Olson indicated that work on the Communications Plan is scheduled to begin in November, 2002, pending Ci#y .Council approval of the engagement letter. It is anticipated that the final plan will be reviewed by the EDC and brought to the City Council for adoption by the end of February, 2003. The consultant will make every effort to complete the project earlier. Economic Development Commission Meeting Minutes October 29, 2002 Comm. J. Erickson suggested that representatives from the Economic Development Commission make presentations to the civic organizations in the community in order to inform them of the EDC's goals. Mr. Olson indicated that methods of building a broader coalition, including methods of engaging civic organizations in the process, would be included in the Communications Plan as is noted on pg. 5 of Mr. Rapp's Strategic Engagement Plan presentation. Mr. Olson reported that the .City would be charged on an hourly basis for the work provided and directed by City staff, and will not exceed $4,000 in any one month according to the engagement letter. Mr. Rapp will be responsible for the project and will assign components to other Himle Horner staff as appropriate in order to reduce the expense of the project where passible. Comm. J. Erickson alsa stated that the $20,.000 that the EDC has budgeted for this project seems expensive for informing and engaging the community on the benefits of commercial and industrial development. Mr. Olson Hated that the. proposed timeline far development of the plan is .from November through February, and that four months of consultant time capped at $4,000 .per month will result in a project cost of $16,000 or less depending on actual consultant. hours. Cornrn: Pogatchnik stated thattheeinforming and engaging the residents about the benefits of commercial anJ industrial development will take much longer and be much less effective if funds are not expended to develop a professional Communications Plan in a timely manner. Economic Development and Public Information staff have met with Mr. Rapp and. provided him with additional information to assist in the development of the Communications Plan. Pending City Council approval of the engagement letter, the next step will be to schedule an additional meeting with staff from the Cable, Public Information and Community & Economic Development departments to gather input and reactions to preliminary plan components prior to the November EDC meeting. .Motion 02..1.8 Comms. Erickson/Pogatchnck moved. to recommend the City Council approve the letter of engagement with the PR Firm Himle Horner for the purpose of developing a Communications Plan to inform and engage residents about the benefits of Commercial and Industrial Development consistent with the Strategic Plan for Economic Development. Motion carried unanimously. 2 Economic Development Commission .Meeting Minutes October 29, 2002 4. Strategic Work Item -Investigation of critical business infrastructure. Update on Interchange Finance Study. Mr. Olson reported that progress continues towards implementing the Interchange Financing Study. A public meeting was held on September 25, 2002 at the City Water Treatment Plant to review the financing for the project. The meeting was attended by approximately 18 property and business owners in the vicinity of the CSAH 50 / t-35 Interchange area. Mr. Olson reported that SRF Consulting Group Inc. is in the process of completing the preliminary design of the CSAH 50 / 1-35 improvements. This design process has resulted in identifying interim improvements that will not involve. the complete replacement of the CSAH 50 / I-35 Bridge. There are indications that MnDOT and the Federal Highway Administration may approve these interim improvements, which are designed to serve the area for at least the next decade. In the second half of November, the Gity plans to meet individually with property owners that .would be directly impacted by these improvements. It is anticipated that the preliminary design will be presented at a public meeting early>in December. Mr. Olson reported that the City has also had a number of discussions and meetings with County staff to obtain the County's support of the strategies identified in the 'Financing Study. It is anticipated that the County will concur with the funding approaches identified in the Financing Study. One componenf of the study is the recommended issuance of City Street 'Reconstruction Bonds ' to advance fund the right-of-way and construction costs associated with CSAH 50 / I-351mprovements. City Administrator Erickson indicated that the City is waiting for a response from the County regarding an advance-funding request. Dakota County has already agreed to allow the City to manage the CSAH 50/I-35 interim interchange improvement project. City Administrator also indicated that City Engineer Keith Nelson has received information indicating the City will. not have to complete an Interstate Access Modification Request for the I-35/CSAH 50 project, which would have delayed the project by one year. Design plans for CSAH 70/I-35 Interchange continue. It is the City's objective for the design plans for this interchange to be completed and approved so that the project would be ready to go in the event that state or Federal funding becomes available. 3 Economic Development Commission Meeting Minutes October 29, 2002 5. Review of Manufacturing and Technology Week. Ms. Flad reported that the City Council and Mayor declared October 21-25, 2002 as Manufacturing and Technology Week in Lakeville at the October 21, 2002 Council meeting. This is the ninth year that Lakeville has participated in this statewide effort to recognize the contributions manufacturers make to the local and state economy. Comm. Emond and Ex-Officio Bornhauser were present at the City Council meeting to accept the official proclamation. Staff arranged for the Thisweek Life & Times newspaper to carry atwo-page feature on Manufacturing Week in the October 19, 2002 issue of the newspaper, consistent with the EDC's goal to inform the community about the benefits of commercial and industrial development. The newspaper also solicited congratulatory ads from local businesses The Proclamation was posted on the public notice board at City Hall. Manufacturing & Technology Week will also be highlighted in the Fall issue of the Airlake Park News. A Manufacturer's .Appreciation Luncheon was held at Progressive Rail, Inc. in Airlake Industrial Park. This is the first year this event has. been. held in the .industrial park. Over 110 representatives from manufacturing companies attended the event. A copy of the Proclamation was provided to all businesses :present at the luncheon, along with a personalized. Certificate of .Commendation from Governor Ventura. Companies .that were not present received their Proclamation and Certificate via mail. Dr. Ron Thomas of Dakota County Technical College .gave the luncheon's keynote address .and provided information on the programs that OCTC offers regarding the development of specific manufacturing skills. The event concluded with tours of Airlake Industrial Park on a Progressive Rail locomotive. Ryt-Way Industries expressed interest in hosting the event next year. 6. Update on Metropolitan Council's 2030 Blueprint and Elko/New Market .Interceptor Sewer. Project. City Administrator Erickson informed the Commission that the City Council has initiated legal action against the Metropolitan Council to challenge the Council's actions to begin designing and constructing a sanitary sewer interceptor for the cities. of New Market and Elko. The suit was filed in Dakota County District court on Monday, October 28, 2002. The City Council is concerned that there are areas of Lakeville that are outside of the Metropolitan Urban Service Area that cannot get sewer service from the Metropolitan Council, yet the Metropolitan Council is proceeding to .provide sewer service ten miles south of Lakeville. City Administrator Erickson indicated that the Metropolitan Council's purpose for extending the interceptor is to provide for the growth of an additional 3,300 .housing units the area is projected to need by 2030. According to City Administrator Erickson, the City of Lakeville could accommodate the 3,300 housing units with little additional cost if areas currently outside of the MUSA were brought into the MUSA and 4 Economic Development Commission Meeting Minutes ' October 29, 2002 allowed to receive urban services. City Administrator Erickson also indicated that the City Council is concerned about the implications the Metropolitan CounciCs significant policy departure would have on the integrity of existing Lakeville Comprehensive Plans and other documents and policies implemented to accommodate the Metropolitan Council's existing Regional Blueprint. City Administrator Erickson reported that many residents of Lakeville have contacted the City Counci! to express their support of the City's position on the Elko/New .Market Interceptor project. Additionally, five other organizations have taken issue with the Metropolitan Council's proposed Blueprint 2030, including ISD 194. Several of these organizations are anticipated to submit Amicus Briefs regarding the project's potential impact on their organizations. Comm. Matasosky inquired whether any other communities are facing a similar experience with. the Metropolitan Council. City Administrator Erickson- indicated that the Metropolitan Council has also proposed extending a sewer interceptor to St. Francis, however St. Francis does not want the extension. City Administrator Erickson also indicated that Dakota County's position on the interceptor extension to Elko and New Market is consistent with he .City of Lakeville's position. Ex-Officio member Bornhauser inquired whether there are other communities with large tracts of undeveloped land in the seven-county. Metro region. City Administrator Erickson indicated that Lakeville. has the largest amount of undeveloped land outside of the MUSH. Comm. Tushie questioned how a civil suit would impact Lakeville's reputation and ability to obtain assistance from the Metropolitan Council in the long term. City Administrator Erickson indicated that the City Council discussed this issue and determined that Lakeville is well respected in the region. Additionally, Mark Ulfers, Executive Director of Dakota County Community Development Agency, reported to the City that the CDA had recently received their largest grant ever for construction of affordable rental townhomes on the Gilb site near UBC Lumber in Downtown Lakeville. City Administrator Erickson. also indicated that the City sent letters to ..all 180 communities in the seven-county `Metro Region encouraging them to participate in the Blueprint 2030 process, and subsequent feedback from a number of communities indicated their appreciation of Lakeville's effort. Comm. J. Erickson questioned why the Metropolitan Council is changing their policy on services to rural areas. City Administrator Erickson indicated that the City Council is attempting to determine the answer to that question. Commissioners were provided with a copy of an Issues Summary on the Blueprint 2030 that was prepared by David Licht of NAC and approved the Planning Commission and City Council. This Issues Summary was submitted to Ted Mondale, Chairman of the Met Council on October 7, 2002. Representatives of the Planning Commission and City staff testified at Public Hearing held by the Met Council on October 16th and conveyed a number of the points conveyed in the Issues Summary. The Met Council has indicated s Economic Development Commission Meeting Minutes October 29, 2002 that it will take the testimony and feedback into account and will provide an opportunity for comment on any changes made to the current draft of the Blueprint 2030. The current date for the scheduled adoption of the Blueprint 2030 is December 18, 2002. Comm. Matasosky questioned whether the Metropolitan Council is attempting to assume responsibility for a larger geographic area. City Administrator Erickson indicated that the Metropolitan Council has not pursued obtaining jurisdiction over an additional six counties, including two in Wisconsin. 7. Chair Vogel's resignation from the EDC; schedule for election of officers Mr. Olson reported that the City Council accepted -Bob Vogel's letter of resignation from the EDC at the October 21., 2002 City Council meeting. Mr. Vogel has been serving the EDC in the capacity of Chairperson since 1997. Mr. Vogel's resignation leaves a vacancy on the EDC and a vacancy in the office of Chair. Mr. Olson indicated that according to the enabling resolution for the EDC, the City Council appoints new members to the EDC to fill any vacancies: that occur. The enabling resolution also indicates that at the first meeting of the year, the Commission hall elect a Chairperson, Vice Chairperson,. and Secretary from amongst its appointed members to serve for a term of one year. Mr. Olson recommended that Vice-Chair Matasosky act as Chair of the EDC for the remainder of the year, and that the. Commission conduct an election of officers at the first meeting of the year, consistent with the enabling resolution of the EDC. City Administrator Erickson also recommended that the EDC recognize.. Bob Vogel for his years of service. The City Council will be presenting Mr. Vogel with a plaque at the Advisory Committee Holiday Party on December 4, 2002. Mr. Olson .reminded Commissioners whose terms are expiring to submit their letters by November 21, 2002 requesting reappointment to the EDC. 8. Director's Report Mr. Olson reported that the Spotlight on Business continues to be well received. Jim Emond introduced Norman Oberto of Imperial Plastics, Bob Vogel introduced. Ron Theis of the Super 8 Motel and Jack Matasosky introduced Chris King of Qa1 Precision Product at recent City Council meetings. Copies of the City Council memos on the featured businesses are attached. The three businesses listed above contributed $234,634 in property taxes annually to the City, County and to School District 194 and provided over 216 full and part time jobs. No spotlight was held on October 21St as the Manufacturing and Technology Week was proclaimed. No .Spotlight will. be held on November 4, 2002. Discussion ensued regarding the criteria for businesses that are asked to participate in the Spotlight on Business program. Mr. Olson also reported that the Board of Directors of the Dakota County Economic Development Partnership voted on September 12, 2002 to pursue negotiations to merge with the Dakota County Workforce Council The Board also authorized Board members Bill 6 r Economic Development Commission Meeting Minutes October 29, 2002 Lucking of Progress Plus, Mike Puppe of Merchants Bank, and Taud Hoopingarner of Dakota County to represent the Partnership in these discussions. The goal is to examine the legal and organizational options available for this relationship and bring back a proposal for the Partnership Board and members to vote on by the end of the year. Mr. Olson reported on his participation in two Strategic Planning sessions for Dakota County Technical College (DCTC). The third and final. Strategic Planning session is scheduled for November 7t". The "Designing the Future" Plan far DCTC will be completed in the next several months and will be provided to the EDC. DCTC is pursuing a Jobs Skills Partnership grant through the State of Minnesota to assist the development of a customized training program for ConAgra Store Brands #hat will assist the company in training employees on new automated equipment that is being installed at the Lakeville plant. Mr. Olson reported that the closing with Advanced Wireless Communications on the sale of the City-owned lot in Fairfield Business Campus took .place in September as scheduled. It is anticipated that constraction will begin on the new building in Spring of 2003. Work has been taking place for several weeks on the new facade, for the- .Ben Franklin _Store downtown, The old facade has been. completely removed. the framing of the new facade is being completed. Mr. Olson also provided Commissioners with a copy of the City Building Permit Report for the period through September 30, 2002, which includes a comparison to the. permit report for the same period last year. The City has issued permits for a total of 427 residential dwelling units compared to 386 during the same period in 2001. The-total valuation for all permits issued through September 30, 2002 is $114,262,549 compared to a total valuation of $105,632,741 during the same period in 2001.. 9. Vice Chair Matasosky adjourned the meeting at 7:25 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary Bob Brantly, Secretary FOR INIlVIEDIATE RELEASE November x, 2002 CONTACT: David Olson, Director of Community & Economic Development, 952-985-4421 Grant for affordable housing awarded to City of Lakeville, Dakota County CDA The Metropolitan Council has awarded $195,000 to help finance the development of Lakeville FamilyTownhomes 3rdAddition, whichwill be located at205th St. W. and IberiaAve. The 40-unit development is a cooperative effort between the City of Lakeville and the Dakota County Community DevelopmentAgency (CDA) to create rental housing affordable to low and moderate income working families. Mayor Bob Johnson said, "Lakeville Family Townhomes 3rdAddition is the third CDA affordable rental townhome development in the community. We appreciate the grant award and are pleased to be able to provide .additional affordable rental housing for our residents." The Metropolitan Council pledged its support to the development by awarding a Local HousingIncentiveAccount(LHIA)grant. Lakeville FamilyTownhomes3rdAdditionwasoneof only four developments to be awarded such funding. The prof ect was able to compete for LHIA fundingbecause the City ofLakeville participates in the Livable CommunitiesAct, a Metropoli- tanCouncil program that encourages all communities in the metropolitan area to create healthy communities through smart development and redevelopment choices. Through the Livable Communities Act, the Council awards grants to cities to clean up polluted land, create model developments, create affordable housing opportunities and create inclusionary housing incen- tives. (more) City of Lakeville 20195 Holyoke Avenue • Lakeville, MN 55044 • (612) 985-4400 • FAX 985-4499 http: //www ci.Lakeville. mn. us Page two, Metropolitan Council grant... Lakeville FamilyTownhomes 3rdAddition was also awarded $802,181 fromthe Minne- so~aHousing FinanceAgencythrough its Economic Development Housing Challenge program, $243,000 from the Family Housing Fund, $250,000 from the Dakota County Housing Opportunities Enhancement (HOPE) Fund and $2,931,050 from the Low Income Housing Tax Credit program allocated by the Dakota County CDA. The CDA expects to begin construction in 2003 of the eight buildings featuring one-, two- and three-bedroom units. The site also will include a tot lot and central community gathering space. The townhomes will be available to families with incomes below 60% ofthe area median income, currently $46,020 for a family of four. The rent amounts will be limited to an affordability standard of 3 0% of gross monthly income, which in the past has averaged $5 50 for atwo-bedroom unit. -30- Agenda Item MEM4R~4NDU'M TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FROM: Ann Flad, Economic Development Coordinator DATE: November 22, 2002 RE: Update on 2002 Strategic Work Plan The 2002-2004 Strategic Plan for Economic Development included aone-year work plan for 2002. In the 2002 Work Plan, Commissioners identified three goals that the EDC would work toward throughout the year. Attached is a status report of the EDCs efforts to achieve those goals. As you will note,. significant progress has been made on educating. the residents on .the .benefits of the commercial and.industrial tax base, as evidenced by the success of the new Spotlight on Business programand the'Strategic Engagement .Plan developed by Himle Horner. Significant progress has also been made on investigation of critical business infrastructure, as evidenced by obtaining. E-Commerce Certification, creation of a Technology Center Task Force, and the detailed examination of financing alternatives to achieve the interchange upgrades needed in the community. The goal of encouraging community partners to provide input to improve the financial position of the city has not been a significant focus in 2002. A meeting was held on November 30, 2001 with Bob Vogel, Jack Matasosky, David Olson, Ann Flad and Superintendent Amaroso to begin dialog with ISD 194. The school district's focus, however,. was on their impending referendum, the design of the new high school, and the outcome of school board elections. Thus progress on this goal has been limited. A 2003 Strategic Work Plan must be developed to guide the EDC's efforts in the upcoming year. A review of the four Strategic Work Areas outlined in the 2002-2004 Strategic Plan for Economic Development will be undertaken and new goals will be set for 2003. A draft 2003 `Work Plan will be brought to the EDC for review at the January meeting. Pending approval, the 2003 Work Plan will be presented to the City Council at the first meeting in February. ECONOMIC DEVELOPMENT COMMISSION STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT • 2002 Update No~cmbee 19, .00: Introduction The City Council, at its December 3, 2002 Council meeting, approved the 2002- 2004 Strategic Plan for Economic Development. The purpose of this strategic plan is to provide focus and guidance to the efforts of the Economic Development Commission and Economic Development staff. The strategic plan presents background information, including a review of the strategies and progress from the previous strategic plan. It also includes a description of the process used to identify and rank the current plan's issues, and a 2002 Work Plan to guide the first year's efforts. During the 2002 Strategic Planning process, Commissioners reviewed and updated the EDC's mission. The Mission Statement provides a method of evaluating the appropriateness of the Commission's goals and activities. All initiatives undertaken by the EDC are to be consistent with the EDC's mission. The 2002 EDC mission is as follows: EDC MISSION The Economic Development Commission is committed to innovative economic growth which enhances the quality of life and provides balance to the business and residential community. Three goals were identified as having the highest priority and were therefore incorporated into the work plans for the upcoming year. It was anticipated that the other issues and goals identified in the Strategic Plan would be addressed as time allows and could be incorporated into future years' Strategic Work Plans. The three goals outlined in the 2002 Strategic Work Plan are: 1. To inform and educate residents on the benefits of the commerciallindustrial base and to gain community support and appreciation for business growth; 2. Financial planning for community -encourage community partners -schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future; and 3. Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. 2 Status of Strategic Plan Activities To inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. Progress To Date • Established a Commercial/Industrial Information subcommittee to plan and implement strategies to inform and engage residents in supporting commercial and industrial development. • Researched baseline information to provide a comparison between Lakeville and similar , metro communities' fiscal and land use status. Comparative information was developed for the cities of Lakeville, Plymouth, Eden Prairie, Eagan, Burnsville, and Woodbury on Operating Budget Per Capita, Percent of tax exempt property, Percent of land designated for various land uses (ie: commerciaUindustrial, residential, public/tax exempt), and City and total property taxes on a $250,000 home (pay 2002.) • Implementation of a Spotlight On Business program featuring a description of the employment and tax benefits of 19 businesses to date at City Council meetings. Used the local government cable channel and press releases to local newspapers to inform residents of the benefits the Spotlighted businesses bring to the community. • Researched Public Relations firms and reviewed proposals from two firms. • Worked with PR Firm Himle Horner to develop a Strategic Engagement Plan to assist the EDC in engaging and informing residents about the benefits of commercial and industrial development. • Engaged Public Information staff in discussions regarding the Strategic Engagement Plan. • Continued to utilize existing communications tools: quarterly Airlake Park News, bi- monthly Around Town articles, etc. Financial planning for community -encourage community partners -schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. Progress to Date • EDC representatives met with ISD 194 Superintendent to inform the School District of the EDC's Strategic Plan for Economic Development and encourage support and collaboration for its goals. 3 Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. Progress to Date Interchange Infrastructure: • Recommend study of financial tools to finance interchange upgrades. • Public meetings to inform property owners, businesses, residents of study's results and progress on interchange upgrade planning. • Implementation of financing strategy is planned for 2003 and 2004 for CSAH 50 Interchange Interim Improvements. Telecommunications Infrastructure: • Researched telecommunications infrastructure • Obtained state E-Commerce certification and hosted E-Commerce Awards Ceremony to publicize the telecommunications infrastructure available • Hosted telecommunications providers trade show at E-Commerce Awards Ceremony • Fostered partnership with Dakota County Technical College, ISD 194, and Dakota County CDA to explore development of a Technology Center in Lakeville Airport Infrastructure; • Reconvened the Airlake Airport Advisory Committee to explore the feasibility of expanding the airport Rail Infrastructure: • Met with Progressive Rail staff to discuss feasibility of expanding rail service in Airlake Industrial Park. East-West Corridor Infrastructure • Dakota County retained the firm of SHE to complete East-West Corridor Study. Completion of the study is scheduled for the first quarter of 2003. • First public open house was held on October 23, 2002 to allow the public with the opportunity to provide Dakota County with input on east-west alignment alternatives. 4 In addition to the three Strategic Work Plan Goals, the Strategic Plan for Economic Development also identified other critical issues facing the EDC in 2002-2004 and beyond. The Economic Development Commission and City Staff have continued to undertake activities that address these critical issues. Some of these issues and the corresponding activities are listed below: Identify solutions for affordable housing: • Worked with Dakota County CDA on the Wren and Gilb sites for affordable rental townhome developments. Staff discussed potential affordable housing projects with several parties who were interested in exploring affordable housing feasibility in Lakeville. In addition to referring these parties to the Dakota County CDA, staff also provided them with demographics and contact information for other housing resources. Name Information Date of Provided Res onse Jeff Maidment Demographics, 2/14/02 fundin sources Retirement Housing Demographics, 2/14/02 Foundation -Tom funding sources, Nutting nutrition resources Work to retain the historical flavor of downtown area, developing it into a vibrant business community and ensuring its long-term viability: • Coordinated award of $75,000 CDBG grant for code improvements to the facade of the Ben Franklin building • Conducted parking analysis for Block H, downtown to assist in feasibility analysis for the proposed Fleck restaurant building. • Provided information to the Main Street Manor leasing agent to assist in soliciting tenants • Ensured the downtown district was highlighted in the Minneapolis-St. Paul Magazine feature • Aquired the blighted car wash/laundromat property in preparation for redevelopment • Administration of the Special Services District • Council adoption of a comprehensive design plan for the Lakeville Arts Center Promote growth of industrial and commercial development to encourage balance between C/I and residential tax base: In 2002, many requests were made for information to support prospective commercial and industrial developments in Lakeville. While many inquiries were answered immediately via phone and in person, additional information was prepared for the 33 inquiries listed on the fallowing page. 5 Nature of Information Proposed Size of Date of Inquiry Business Requested Location (if site/bldg Response Proposed any) re nested Neal Johnson Auto Repair Zoning/Ordinance D& J Glass 10/18/02 Review Building Airlake Industrial Pazk Kathy Donohue - Chinese Zoning/Ordinance Sherman Bldg. 2,100 sq. ft. 10/17/02 Donohue Realty Restaurant Review Downtown Lakeville Damon Peary Fitness Center Demographics No location 10/8/02 selected Kris Smeltzer 5+ acre non- 5+ acres 10/04/02 residential sites Suntide Commercial Retail space Existing and 10/03/02 Realty - for client upcoming retail Timoth I o develo ments Jan Karrmann Daycare Site information East of Cedar 3+acres 9/20/02 facilit Ted Vascce -Midland Retail Demographics 9116/02 Develo ment develo ment CB Richard Ellis -Jim Telecommunic Incentive Airlake 9/10/02 Freytag ations information, Industrial Park, Regional prospective sites Fairfield Facility Business Cam us area Applebees -Steve Multiple 915/02 Canada Commercial Develo menu Sage Electrochromics - High Tech Sites, Airlake 9/5/02 Mike Kenned Manufacturin demo a hics Industrial Park International House of Restaurant Ordinance info, Timbercrest 8/30/02 Pancakes -Steve Scott engineering, building code, signage, design info. Regional Chamber of Phazmaceutica Site, infrastructure, Airlake 100+ acre 8/16/02 Commerce - 1 Mfgr. utility information Industrial Park Louise Dickme er - DTED - Manufacturing Existing building Airlake 400,000 sq. ft. 8/16/02 Dentl Hau esa client information Industrial Park Dale Anderson Media Site information Airlake 100,000 sq. ft. 8/07/02 Architects -Kurt Dale Production Industrial Park Facilit Inge Grasdal Dental Demographics Oak Conner 7/30/02 Practice Professional Plaza The Commers Company Undisclosed Site information Airlake 15-20 acres 7/23/02 - Jce Commers manufacturing Industrial Park client Matrix Design & Commercial/re Zoning I-35/CSAH 70 100-150 acres 7/22/02 Development -Robert taillight information, site Cummin industrial information Crawdad's North- Ron Restaurant Pazking analysis Heritage 6,000 sq. ft. 7/3/02 Hill Commons Welsh Co. -Ted Carlson Industrial Zoninglcomp plan Airlake area 6/24/02 develo ment info, MUSA 6 Metro East Development Distribution Site information Airlake 200,000 sq. ft. 6/6102 Partnership - Amie Center Industrial Park Wetterlin Keewaydin Group - High Tech Building and site Airlake 5/10/02 Jason Munstock Data Center Information Industrial Pazk Gazy Buesgens Office Dev. Site information, I-35/70 130,000 5/17/02 site tour, Bob Smith Duke Realty Site information Airlake 5/i8/02 Industrial Pazk Trans-Alazm -Richard Company Site information, Airlake 25,000 sq. ft. 4!24/02 Smith Headquarters incentive Industrial Pazk information Mark Kreissler Storage Zoning information Airlake 4/24/02 facilit Industrial Park Trudi Blough Water Pazk Demographics, 4/3/02 information, information on staztin a business Green Mill Restaurant & Restaurant Demographics, Multiple 4/2/01 Bar -Chris Bangs sites Commercial Develo ments United Pn~ducts -Nick Building Site information Airlake 20,000 sq. ft. 3/13/02 Spadaccini materials Industrial Pazk distribution Tryangle Mazketing - Restaurant Site information, Timbercrest 3/8/02 Bill Bernazdo demo a hics Susan Reller Fitness Center Demographics 2/20/02 Health Partners -Deb Medical Site information, 185 St. 2/14/02 Lawrence facility zoning, comp plan information Home Depot -Craig Distribution Demographics, site Airlake 1/25/02 Fo Facilit information Industrial Pazk South Minnesota Oil Site information Airlake 1/15/02. Com an - Dick K Industrial Park 7 Strategic Work Areas for 2002-2004 By ranking and prioritizing the most .pressing issues, the following four strategic work areas have been identified as the most critical for the EDC to address. If approved by the City Councit, the strategic work areas and their respective critical issues will form the basis of the EDC's 2002-2004 Work Plan. Note: the remaining issues were incorporated as tactics to address the four priority issues below. Once the City Council endorses the EDC Strategic Issues, specific work plans addressing each item will be developed and included in the 2002-2004 Strategic Plan far Economic Development. The entire plan will be brought to the City Council for approval -20- STRATEGIC WORK AREA: Su ort Ma'or ~p J T tans artat~©n acf I sties F p In The Cat Y ISSUES TO BE ADDRESSf D: Assess im act of interchan a riorities far 60-70-50 p J P Need far major transportation arteries in the city including the need to provide adequate access to commereialfretaii/industrial areas I-35 Corridor enhancements a o Explore issues related to East-West Corridor Implementation of Gateway and Corridor Plan -need defined plan for implementation , Investigate/encourage expansion of air ort and rail op ortunities and p p their impact on the C/I community -21 - STRATEGIC WORK AREA: Pro ate ~o i c i es Q m ual rt t a e S r t c Growth Y 9 ISSUES TO Bf ADDRESSEQ: Encoura a investi ation of all otential a rade o ortunities in 9 9 P Pg pp critical "business infrastructure" elements -phone, data, .and other :infrastructure,. to promote positive outcomes for long term. Encourage the use of development tools, e.g.: PUD's to integrate city design standards with new developments to achieve overall consistencies. r Continue to partner with Lakeville Chamber and DLBA for promoting Lakevlle's identification - "Where we are located." Antici ate emer in /future cit economic develo merit issues and p 9 g Y P develop a proactive solution -22- r STRATEGIC WORK AREA: Foster A Gala red n Comrnun~t y ISSUES TQ BE ADDRESSED: inform and educate residents on benefits of C/I base to ain 9 community support and appreciation for business growth. Identif solutions. for affordable and 'lfee cle housin . Y y g Work to retain the historical flavor of downtown area,. developing it into a vibrant business community & ensuring its long-term viability. Make use of South r e n Gateway opportunities and proximity to both metro areas.:. " Develop specific marketing for commercial growth. -23- STRATEGIC WORK AREA: th Pro ote Crow e coal d str~al ~Arrd Cornrn r In u T r~cou ra e evelo ant o a 9 p C I And Balance between T x base Res~dentral a ISSUES TO BE ADDRESSED: Financial planning for community -encourage community partners - schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and .overall impacts of our efforts to improve .financial. position of .city in future, Need to have a proactive budgeting process for EDC Affordability of land Current lack of retail -24- 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: November 22, 2002 RE: Himle Horner update At the November 4, 2002 City Council meeting, the Council postponed discussion of the. EDC's recommendation to engage Himle Horner :Incorporated to develop a communications plan for the implementation of the City's Strategic Plan for Economic Development.. The Council will discuss the cost-benefit of the Himle Horner proposal at a Council Work Session scheduled for November 25, 2002. Staff wilt provide the EDC with a briefing. of the Council's. discussion at the November 26, 2002 EpC meeting. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FROM: Ann Flad, Economic Development Coordin~t~~~ Y DATE: November 22, 2002 RE: 2003 CDBG Every year the Dakota County Community Development Agency (CDA) receives Community Development Block Grant (CDBG) funding from the federal Department of Housing and Urban Development (HUD). These funds are to be used by communities for projects that either benefit low to moderate income people or eliminate slums and blight. The CDA uses a formula to determine the amount of funds to allocate to each community in Dakota County. The CDA has indicated that Lakeville can expect approximately $105,000, which is similar to the level of funding the City received in 2002. A history of recent funding activity is listed below: 2000: $70,000 was allocated to the newly created Downtown Code Improvement program and the City subsequently used those funds to assist the Smith Dental renovation. $34,819 (the remainder of the funds) were reprogrammed into 2001 and combined with the entire allocation of 2002 to support an affordable housing initiative by the CDA. 2001: $109,316 was used, along with $34,819 of 2000 funds, to support the acquisition of the Wren property for development of affordable rental townhomes by the CDA. 2002: $75,000 was again allocated to the Downtown Code Improvement Program and subsequently used to assist the Ben Franklin renovation. $33,692 is anticipated to be used to offset costs of the clearance, contaminated soil clean- up, and demolition of the car-wash/drycleaner property. The Downtown Code Improvement Program has achieved significant success, with major renovation of two buildings in downtown accomplished because of the availability of CDBG funds for this program. Action Requested: Staff suggests the EDC recommend that the City Council authorize an application for $70,000 in CDBG funds for the Downtown Code Improvement Program and the remaining funds for possible additional soil cleanup costs for the car wash/drycleaner property. r 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: November 22, 2002 RE: Business Retention Program One of the components of the 2002-2004 Strategic Plan for Economic Development is the promotion of a balance between commercial/industrial and residential tax base. The activities of Manufacturing Week have been the City of Lakeville's primary method of encouraging business retention over the last several years. One method of promoting a balanced tax base is to encourage existing businesses to remain in the community. A business retention program, which includes visits with existing businesses .helps to identify businesses' issues, provides them with a point of contact within the city, and can direct them to additional resources if needed. Staff is proposing to enhance Lakeville's Business Retention Program by conducting visits with businesses throughout 2003. Visits with an executive with each company will be arranged. in advance, and a specific list of questions will be asked. The questions will be designed to gather information not readily available regarding the Lakeville business climate. Follow-up to these discussions will take place as needed, and the results of the surveys will be tabulated quarterly for the EDC's information. If the Commission is in agreement with this recommended initiative, staff will incorporate this into the work program for 2003. ~ c J~~~ Lakeville Business Retention & Expansion 2003 Survey Company Name: Address: Person Completing Survey: Title: Phone Number: 1. Who are the primary decision-makers for plant expansions or relocations? 2. Where are the company's top three markets? How far is this facility from your primary markets? 3. Where are your primary suppliers located? How far is this facility from your primary suppliers? What do they supply? 4. Is the market you serve stable, growing or shrinking? Where is it growing fastest? 5. Where are your company's primary competitors. located? Why? 6. Are there major innovations taking place in your industry currently or on the horizon? How will they change how you do business? 7. What is are the two greatest challenges you experience at this Lakeville facility? 8. What percentage of your workforce is professional? Skilled or semi- skilled? Unskilled? 9. How has employment changed at this Lakeville facility over the last two .years? Do you anticipate employment to remain stable, decline or increase over the next two years? 10. What are the advantages and disadvantages of doing business in Lakeville? 11. Do you do business with any companies in Lakeville? Who? 12. Are you aware of any corporate expansion plans here or elsewhere? 13. Is there an out-of-town corporate decision maker we could send Governor's Certificates of Commendation to during Manufacturing Week? Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David L. Olson, Community & Economic Development Director FROM: Ann Flad, Economic Development Coordinators - ° m DATE: November 20, 2002 RE: Bi-annual Economic Development Report to Lakeville Residents Previous Strategic I laps for Economic Development have included the goal to distribute a report on economic development to the residents of Lakeville on a regular basis. The 2002- 2004 Strategic Plan for Economic Development also includes a goal to educate the residents on the benefits of comrnercial/industrial development. The last annua( report an Economic Development was prepared in 1997, when the EDC distributed "Lakeville; .Right on Track. An Economic Development Report to Lakeville Residents" (see attached report.) This document was distributed to every household in Lakeville. EDC and staff members prepared the report content, a Graphic Designer developed the layout, and Custom Color Printing printed the report. Preparation of a new Annual Report on Economic Development would assist in achieving the goal of educating the residents on the benefits of C/I development.. The 2003 Economic Development Department budget includes sufficient funds for the preparation and distribution of an annual report. For comparison purposes, the City's recent Water Quality Report was mailed to all residents, and the total project cost was approximately $5,600. Staff will work with the C/I Subcommittee to determine report content and project costs. A enda Item # 9 MEMORANQUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Developmen# Coordinator FR: David L. Olson, Community & Economic Development Director DATE:. November 22, 2002 RE: November Director's Report Spotlight. on :Business Jim Emond introduced Kim Dresselhaus of Menasha Packaging Corporation at the November .18th City Council meeting. Ms. Dresselhaus has been with Menasha Packaging for over 20 years and started with the company when she was a student at Lakeville High School. A copy of the memo that went to the City Council on Menasha is attached. Technical Methods is scheduled to be featured at the December 2"d meeting. Because the December 16tH meeting #alls during the busy holiday season, no business is currently scheduled for that meeting.. Visit of Technology Plus in Mankato Ann Flad along with representatives of Dakota County Technical College and ISD 194 visited and toured the Technology Plus facility in Mankato on November 6tH The Technology Plus facility and program is considered by many to be one of the more successful Technology Centers in the State of .Minnesota. A summary of the tour and more detailed .information on Technology Plus. is attached for your information. Dakota County Technical College continues to explore opportunities to develop a greater presence in Lakeville. They completed the first part of a Strategic Planning process on November 7tH. Further information on the conclusions of this effort will be provided to the EDC when it becomes available. Election. Recap. Prepared by Economic Development Association of MN .Lobbyist Attached is an election recap as prepared by Kathy Hahne with the firm of Faegre and Benson. Ms. Hahne is contracted by the Economic Development Association of MN (EDAM), of which the City of Lakeville is a member, to monitor and lobby on economic development issues at the State Legislature. A copy of the DRAFT 2003 Legislative Policy Positions are also attached. These policy positions will become the basis by which EDAM monitor these issues and programs during the Legislature Session. Board and Commission Appreciation -Event If you have not already provided your RSVP to Judi Hawkins for this event to be held on December 4, 2002 at Lakeville Area Arts Center, please do so by Wednesday, November 27t". MEMORANDUM TO: Mayor and City Council City Administrator CC: David L. Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinat DATE: November 14, 2002 RE: Spotlight on Business: Menasha Packaging 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 #1 of the Economic Development 2002 Strategic Work Pfan.} Menasha Packaging Company has been selected as the next business to be featured in the Spotlight on Business program. Economic Development Commissioner Jim Emond will be in attendance at the Council meeting to present information on Menasha Packaging Company, and introduce Kim Dresselhaus, General Manager of the Lakeville facility. Menasha Packaging Company is located at 8085 220th Street West in Airlake Industrial Park. Located on 18 acres, the building was constructed in 1969 with the company beginning operation. in Lakeuille in 1970. The Lakeville facility is one of Menasha Corporation's 67 facilities in 20 states and 8 countries. It is the largest Menasha Packaging facility in Minnesota. Other locations include Brooklyn Park and St. Cloud. Menasha Packaging's parent company, Menasha Corporation, is one of America's oldest private businesses. Founded in 1849 in Menasha, Wisconsin, the company began by manufacturing pails. Barrels, tubs and other wooden containers were then added to the product line and produced by the company for nearly 100 years. The last wooden butter pail was shipped in 1942, signaling the decline in demand for wooden containers and the rise in demand for corrugated packaging. By acquiring and building new facilities, the company had already become actiue in manufacturing corrugating medium. The company instill owned today by 140 descendents of its founder, Elisha Smith. Today, Menasha Corporation comprises four principal companies and several investment companies, each of which are independently operated and serve diverse industries. Its principal companies help businesses package and label their products, safely and efficiently move those products through the supply chain and. promote products to consumers in stores. across the United States. The Corporation serves diverse industries, including: the packaging and paperboard, material handling, plastics, promotions and printing, and the food service industries. With a plant in Lakeville, the corporation's fourth company, Menasha Packaging Company, designs and manufactures corrugated containers, displays, protective packaging products, paperboard and paperboard substrates,- folding cartons, and commercial printing products. Menasha Packaging offers customers creative structural and graphic design, sophisticated printing, and a host of specialized services that help package, protect, transport. and sell products. Rolls of paper are purchased from the large paper mills and transported via rail to Menasha Packaging. The company utilizes corrugating machines, presses, and other equipment to manufacture products for customers throughout the United States. While Menasha Packaging serves a wide variety of industries, the company specializes in packaging for the candy, food, automotive aftermarket, -and pet food industries. Customers include Schwans, ADC Telecom, Rosemount Office Systems, and Ryt-Way Industries. Regional managers including the Regional Human Resource Manager, Regional Production Manager, and the Regional Controller also operate out of the Lakeville facility. Nation-wide, the Menasha Corporation employs over 5,500 people. In Lakeville, Menasha Packaging contributes to the local employment base by providing jobs for 175 area residents. Menasha is dedicated to providing employees with opportunities and often promotes from within the company, resulting in many employees who have been with the campany for decades. In addition to employment, Menasha Packaging Company provides a substantial tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of over $4.3 million to Menasha Packaging"s buildings and property. This market value resulted in the company's contribution of $158,279 in local property taxes going to support the City, Dakota. County and Independent School District 194. in 2002. Technology Plus -Mankato, MN November 6, 2002 visit Present: Sharon LaComb, VP of DCTC; Gary Hebert, Dean of Customized Training for DCTC; DCTC Research Librarian; DCTC Graphic Design Instructors; ISD 194 Carol Clark; City of Lakeville, Ann Flad. Technology Plus is part business incubator, part community computer lab, part customized training center, and part education facility. It has been in operation for almost 2 years. Dr. Layne V. Hopkins created the center and manages every aspect of its operation. There is one other full-time staff person, and three interns who assist in the education, maintenance of equipment, etc. Organizations involved include: Minnesota State University, Mankato; South Central Technical College; Brown Printing; Midwest Wireless; Mankato Clinic; Blue Earth Valley Communications. STRUCTURE Technology Plus is a 501 C3. By not being a public entity, there is enhanced confidentiality for tenants. Board of Directors: hand picked, and includes representation from anchor tenants, educational institutions, technology businesses, etc. Three needs surveys conducted: Community survey: how sophisticated is the community • Small business: What are their needs; where do they get their training? • High Tech businesses: What are their needs; where do they get their training? .Focus group discussions were held to brainstorm ideas and help community take ownership of the project. Funding provided from DTED ($4.5 million grant) and matched by the City (used 'h cent sales tax.) $2 million remaining after 2 years. Building is cash- flowing on its own and has $53,000 in the bank. INCUBATOR Tenants: Tenants are located from communication with Dr. Hopkins' former students, through outreach to native Mankatoans who have moved away and would consider returning, from existing businesses (some of whom are downsizing or considering moving out of the community), etc. • Leue1 1 tenants: Are in the research and design phase. Must have a good business plan. • Leuel 2 tenants: Tenants must have several customers using their product. In the product refinement stage. • Level 3 tenants: Must have 5+ customers using their product. A solid, revised business plan, including marketing, is being implemented. • Level 4 tenants: Anchor tenants which pay market-rate rent and find the .incubator acost-effective use of resources. These lease revenues offset the below-market rate revenues generated from level 1-3 tenants. Level 4 customers do receive some discounts on classroom use, etc. Level 4 tenants include 3 M, Brown Printing, Firepond, Wells Federal Bank, Minnesota Technology. Graduation standards: It is written in the lease that tenants (except level 4) must move after 3 years. Management also reserves the right to evict tenant if they are not meeting: the performance measures of their level, or for other reasons. Dr. Hopkins has evicted one tenant in the last two years. Equity in business: A 6% to 8% equity position is taken in each Level 1-3 business. 1 %-2% penalty charged if the business ever leaves the state of Minnesota. Services; Incubator amenities include: • Below-market rate rent ($7.50 for level 1, $9.00 for level 2, $11.00. for level 3. Level 4 pays $15/sq. ft. which is market rate in Mankato.) • A receptionist • A post office box and suite number (lends legitimacy to the address) • A copy machine • Access to conference rooms • Access to the classrooms and training provided • Business counseling • Lunch is catered in by a local entrepreneur and is sold to employees Business counseling & referral: Dr. Hopkins meets with each business at least twice a week to discuss how the business is doing. He forges relationships between businesses and refers companies to outside resources for assistance. PHYSICAL BUILDING: Dr. Hopkins started by renting an office in a downtown building while he did needs assessment surveys which formed the foundation for the programs offered. The current building was purchased from Firepond when they were consolidating operations. Firepond chose to maintain a smaller presence in Mankato and is now an anchor tenant in the building. The building was remodeled to accommodate multiple businesses, smart classrooms, and a Community Access center. Remodeling included re-wiring the entire building. Amain server room was installed, and two of the anchor tenants also have their own server room. The main server is maintained by Dr. Hopkins and student interns. COMMUNITY ACCESS CENTER: The Community Access Center is a location for educating the populace, including elementary, secondary, and higher education, business and government leaders, and the general work force. The facility includes a computer lab with computers donated by IBM, Mackintosh, Dell, and Gateway. There are even computers for children which are encased in Little Tykes plastic desk sets. Education is provided by different resources, including the local Extension Agent. For example, the Extension Agent provided training to local bankers and farmers on how to access information on the new farm bill that will come into effect in 2003. Grants for bridging the digital divide are sought/used to help support this Center. The classes are held free-of-charge to participants. Retired educators are being tapped to provide much of the education. Technology training for these educators is underway. PROGRAMS AND TRAINING: "Just-In-Time Training" (much like customized training) is provided to businesses and employees who have specific training needs that aren't consistent with established curriculum. For example, E-Travel, a tenant company, is holding a course to train their employees on the new Orbitz software. The Institute for Wireless Education provides high end customized training for engineers at AT&T, Sprint, etc. More basic wireless education has been taught during J-term for college students. The facility includes four "smart classrooms" which have multiple computers with high-speed Internet access, and a projector and screen for overhead presentation/demonstration. College students provide staffing for some businesses. These intern students are given atechnology-related issue and then create applications for technology. There are several different structures to the implementation of this component. The business pays Technology Plus, who in turn uses a portion of those funds to pay students. Students get hands-on experience and Technology Plus makes money to help support the building/programs. A business representative meets with the students several times a week, and Dr. Hopkins also oversees their work. NEXT STEP: MULTI-TENANT BUILDING: Dr. Hopkins is interested in developing amarket-rate, technology oriented multi- tenant building for businesses to move into once they "graduate" from the incubator. Dr. Hopkins is also expecting to add onto the existing Technology Plus building. TECHNOLOGY ¦ Educational Institutions Dr. Layne V. Hopkins • BUSIrieSSeS President 507-385-3203 GOVerrimerit UriltS lhopkins@mankatotechplus.com ¦ Support Programs Jill A. Hahn Assistant to the President s07-385-3205 j hahn@mankatotechplus. com ~ • Kris Wolle Dr. Karen Boubel; Interim President, Management Intern A REGIONAL CENTER Minnesota State University, Mankato 507-385-3207 kwolle@mankatotechplus.com FOR TECHNOLOGY, Mr. Neil Eckles; President, Blue Earth Amanda Burrows INNOVATION AND Valley Communications, Inc. MIS Intern so7-38s-32oo LEA~RN]~TG Ms. Maureen Gustafson; Director of aburrows@mankatotechplus.com Public Relations, Mankato Clinic Jim Patchin _..~4 --X=;M;, Mr. Dennis Miller; President, Midwest Networking Intern Wireless & Chairperson, Technology 507-385-3221 , ' Plus Board of Directors jpatchin@mankatotechplus.com a - , Mr. Brian Olsem; President, James Ken Eggers Tower Custodian 507-420-4644 Vice President of Technology Plus of Mankato, Inc. Mr. Harry Popiel; 1961 Premier Drive, Suite 100 Human Resources, Brown Printing Mankato, MN 56001-5901 Phone: 507-38s-3200 Mr. Keith Stover; President, South Fax: 507-385-3202 Central Technical College www.mankatotechplus.com Printed 6/26/2002 The Technology Plus Center is a Q Community Access: Anchor Tenants: regional initiative comprised of Create a technically savvy and Fire and businesses, government agencies, aware populace at all levels of p institutions of higher learning, the region including elementary, • E-Travel Experts public entities, and secondary and secondary and higher education, elementary schools. business and government leaders, and the general work Support Organizations: Mission force. • Center for Continuous Learning To provide leadership and facilitate Q Assessment, Education • Institute for Wireless Education the development of a technology- .based economy in the Mankato and Training: • Minnesota Technology Region. Create awell-educated, trained, • Wells Federal Bank technically competent work force that will assist ,all Vision employers and entrepreneurs in Business Incubator Tenants: Technology Plus will develop a becoming successful. • 3M comprehensive and dynamic Q Business Incubator: • Brown Printing technology based sector throughout the Mankato Region. Create an environment that. • DayPort encourages and nurtures • Be Wise Technology Solutions companies to start and achieve success. • Fuzzy Intelligence Technologies Focus • AgStar Financial Services, ACA Technology Plus will utilize Q Infrastructure: existing resources to achieve goals Create an infrastructure that related to the electronic, wireless, facilitates the development and and software aspects of technology. growth of technically based companies. 1 ELECTION RECAP Despite difficult economic times, which could have been blamed on the Republican administration in Washington, voters in Minnesota turned out in record numbers to vote for Republican candidates. Minnesota topped the nation. in voter turn out with 61.2% of eligible voters going to the polls. Long lines at many polling places prevented locations all over the state from closing until after 10:00 p.m. In typical midterm elections, the party in control of the White. House usually loses some ground in terms of control of the United States House and Senate. This year the Republicans increased their majority in the House of Representatives and gained control of the Senate by a slim margin. THE MINNESOTA LEGISLATIVE LANDSCAPE The Republicans gained 11 seats for a total of 82 seats in the Minnesota House, giving them a comfortable 82-52 majority. The last time the Republican House majority was this large was in 1969. The Republican gain of four seats in the Senate was not sufficient to take control, but resulted in a narrower DFL majority of 35-31, plus one Independence Party member. In all, the Senate and House Republicans beat 13 DFL incumbent legislators, while the DFL beat only 2 Republican incumbants. The Independence Party maintained their one seat in the Senate, balancing the loss of a member due to the retirement of Senator Bob Lessard (I-International Falls) by electing former Republican Senator Sheila I~iscaden of Rochester. There are many theories to explain the Republican victory in Minnesota. Some argue it was the presence of President Bush and other dignitaries during the waning days of the campaign. Others point to the partisan tone of the memorial for Senator Wellstone and the resulting very short campaign Vice President Mondale was required to wage, while others point to a lack of a unified DFL message. Some believe the strength of the "no new taxes" Republican message resulted in their clear victory, and. some believe that national security issues turned many voters to Republican candidates. Undoubtedly, it is some combination of all of these factors. Republican candidates did very well across the nation and Minnesota followed that trend. THE NEW LEGISLATIVE LEADERSHIP The four caucuses have now elected their new leaders. Speaker Steve Sviggum (R-Kenyon) was. reelected and given a strong endorsement by his House Republican Caucus, who also elected Rep. Erik Paulsen (R-Eden Prairie) as the new Majority Leader, filling the vacancy left by Governor-elect Pawlenry. The House DFL elected Rep. Matt Entenza (D-St. Paul) as Minority Leader after Rep. Tom Pugh (D-South St. Paul) announced he would not seek reelection. On the Senate side, the DFL elected Senator John Hottinger (D-Mankato) as their Majority Leader, replacing long-time Majority Leader Roger Moe, who lost his bid for Governor. The Senate Republicans reelected Senator Dick Day (R-Owatonna) to continue as Senate Minority Leader. WHAT TO EXPECT IN 2003 The Minnesota Legislature will convene with 64 new legislators, including those. who moved from the House to the Senate, on January 7, 2003. This Legislature will be faced with the daunting task of balancing a budget for the 2004-2005 biennium that is currently projected, based on current spending, to have a $3 billion shortfall. Legislators will debate many new ideas for spending less, but providing a quality education in our schools, nursing home care for Minnesota's seniors, a competitive higher education system, better roads and improved transit will be top priorities. The projected deficit will present a daunting challenge to legislators who promised voters improvements in many of these areas. The Legislature will certainly be more conservative as a result of the election. Fiscal policy, social and business climate issues will all be affected. As always, ideological differences will be only one point of divergence in the Legislature. Look for rural, urban and suburban differences to also play a major role. THE GOVERNOR'S OFFICE Governor-elect Tim Pawlenty and Lt. Governar-elect Carol Molnau have put together their transition team headed by Charlie Weaver, former Republican legislator, who serves as the Commissioner of Public Safety in the Ventura Administration. The transition team will be working with the new Governor and a team of advisors to name new commissioners and begin drafting the new administration's biennial budget. For more information on the balance of the transition team, call us or check the Pawlenty web site at www.timpawlenty.com. While Governor Ventura required his commissioners to propose budget cuts of 10 - 15%, it is expected that Governor-elect Pawlenty will require closer to 20% reductions in the proposed budgets of the various departments. Now is the time for organizations to educate the new legislators about their organizations and legislative agendas and get ready to advocate for those legislative priorities come January 7`h. The Faegre and Benson Government Relations team has worked with Caucus leaders and their candidates, as well as the Pawlenty campaign, during this election and in previous legislative sessions. We would be happy to help you as you prepare for the 2003 session. We look forward to working. with you! M1:932b64.01 J DRAFT Economic Development Association of Minnesota Legislative Policy Positions 2003 Who is EDAM? The Economic Development Association of Minnesota (EDAM) is a statewide association representing more than 460 public and private sector professionals involved with implementing state, regional, or local economic development initiatives. Our egislative policies are shaped by members' unique experience and understanding of the tools and tactics that are most effective in positioning and marketing Minnesota as a location for corporate, small business, housing and community investment. Economic developers generally focus on financing, marketing and implementation strategies for: $ Developing public infrastructure $ Facilitating business expansion and job creation $ Attracting, training and mobilizing a skilled lacal workforce $ Addressing local housing needs $ Marketing Minnesota's benefits as a place to live and locate a business Introduction Current economic conditions require initiatives throughout Minnesota to create opportunities that promote jobs, encourage development, provide education,. and improve transportation. The following economic development issues and policies have been identified as priorities of EDAM for the 2003 legislative session: Funding of the. Minnesota Investment Fund; funding for transportation; the expansion of workforce development resources; and funding of the Redevelopment Fund. In addition, EDAM will also monitor and comment on other issues that impact economic development in Minnesota. 1\ 1. Minnesota. Investment Fund Issue The Minnesota Investment Fund (MIF) has been an effective economic development tool that not only funds projects, but provides seed dollars for the establishment of local revolving loan funds. Presently, MIF allows communities to keep up to $100,000 to capitalize and be reused in a local revolving loan fund. MIF's flexibility allows communities to use funds to leverage additional public and private dollars for the purchase of real estate, capital equipment, and to fund job skills training programs. Because repayment of MIF dollars go to the general fund, annual allocations by the legislature have been required to fund MIF. Annual funding amounts for MIF have decreased. in past years and no funding was allocated in 2002. PoPolicv EDAM recommends converting the Minnesota Investment Fund to a state .wide revolving loan fund, where repayments by borrowers are recycled for use by other communities. EDAM recommends the funding of MIF with additional dollars to capitalize the fund. EDAM supports the use of a portion of MIF dollars to establish and grow local revolving loan funds. EDAM supports increased flexibility in the use and application of MIF funds. 2. Transportation Issue Safe and efficient transportation systems promote and support economic growth and are the basic foundation that allows Minnesota to remain competitive in a global market place. Transportation needs have been well documented over the years, but only small gains have been made in providing the funding necessary to make the improvements that are needed. The state continues to fall further and further behind in being able to preserve and maintain the systems that they have let alone being able to make the necessary capacity improvements for our highway and transit systems.. Mobility is critical far Minnesota businesses to move their products and raw materials. A recent study by the Texas Transportation Institute found the Twin Cities tied for second nationally in the rate of congestion growth. In Greater Minnesota many roads are under designed for the heavy loads and heavy equipment that they carry. People throughout Minnesota do not have access to alternative modes of transportation that could help to alleviate delays on the. highway system. Folcv The passage of a long-term transportation funding package is necessary in 2003 to begin addressing these pent up needs in order for Minnesota to remain economically competitive. EDAM recommends and urges the 2003 legislature and the new administration to significantly increase transportation funding revenue by adopting along-term transportation funding package that includes the following: $ At least afive-cent gas tax increase $ Increase motor vehicle registration fees to their pre-2000 level $ A constitutional dedication of all motor vehicle sales tax revenues to surface transportation systems $ An indexing of the gas tax tied to the CPI $ '/a cent local option sales tax adopted by local referendum $ Bonding authority for major transportation projects $ Increased dedicated funding for transit including busways, commuter rail and light rail $ Increased funding for bridges $ Increased funding for airports, waterways and state railroad initiatives 3. Workforce Development Issue A productive and highly skilled workforce,is a key factor in maintaining the vitality of Minnesota's economy. Despite the current economic downturn and related loss of jobs, the demographic trends suggest that Minnesota will again face a shortage of skilled workers as the baby boom generation reaches retirement age. Minnesota's global competitiveness can be improved by investing in the workforce to meet both current and future demands for skilled and productive workers. Unfortunately, the current economic downturn has displaced hundreds of thousands of Minnesota workers. During this time of labor surplus, Minnesota has an opportunity to upgrade the skill level of unemployed underemployed workers. Investing in displaced workers will likely yield a positive return on the state's investment and will better position Minnesota to sustain economic growth in the future. In order to support Minnesota's dynamic economy, a mix of workforce development and economic development. strategies are necessary to create jobs and ensure that the workforce is appropriately trained for high skill, high- wage jobs. Responding to the changing market conditions requires a more integrated approach to economic development and workforce development that allows local communities greater flexibility to meet the needs of business. Policv EDAM supports efforts to enhance Minnesota's economic vitality by creating stronger linkages between economic development, workforce development, and higher education. EDAM supports investing in higher education and training activities that are responsive to employer demands and that are consistent with labor market needs. EDAM supports maintaining. the current levels of funding for the Job Skills Partnership Program, the Dislocated Worker Program, and the Minnesota Youth Program. EDAM supports funding for programs that help dislocated workers acquire new skills and return to productive employment. Specifically, EDAM supports increasing the workforce development fee and dedicating the funding to the Dislocated Worker Program in order to maintain current program funding levels. 4. The Minnesota Redevelopment Fund Issue The Minnesota Redevelopment Fund was created by the legislature in 1998 as a tool to assist communities with the reinvestment and revitalization of underused lands for the purpose of economic growth, job creation, and community development. Since 1998, the fund has helped communities create thousands of jobs, leverage millions in private investment and build hundreds of housing units. Resources such as the Redevelopment Fund are necessary to facilitate the reuse of underdeveloped areas and help the State accomplish sound economic development objectives by promoting the efficient use of land, infrastructure and environmental resources. The legislature included funding for he Redevelopment Fund in the 2002 bonding bill, however the Governor. vetoed the allocation. Funding should be restored.. Policy EDAM supports funding of the Redevelopment Fund at a minimum of $20 million. EDAM supports the state wide competition for Redevelopment Fund dollars. EDAM supports:: award criteria, in .addition to those in currenfi statute, which would maximize the. return on investment to the State as well,as provide access'and flexibility to the business community. Such criteria include, but are not limited to: Job. creation; industrial redevelopment; environmental benefits; use of existing and installation of new infrastructure; provision of affordable and market rate housing; mixed use develapment; crime prevention, blight reduction; community stabilization, and property tax base maintenance or improvements. c For furniture retailer, HOM is where the highway is Page 1 of 5 news freeti~Tte -travel - homezone -cars - shappincd - ~v°orkaverlue - comsr~unities metro iregion - nation r world -politics -business -sports -variety -.opinion -fun & games -talk ~ Utilities ~ ~ y ~ ~9 Email this ~ ~ Print this si ~ > ~ For-furniture retailer, HOM is where the highway is ~ n me a e` P9 ;y~;,=~~ ~ :Larry Werner Star Tribune Seat`Ch c ~ F'ubGshed Nt~v. 1f3, X002 HOM1$ index News...._...~. ap business The rapid growth of metro suburbs can be measured in many -ways F;nd ;t! news increased traffic congestion, Republican election victories and the HOM More ~-~rcn opts ap finanzas Furniture signs overlooking highways that carry suburbanites into, out of technology and around the Twin Cities. business For Wa ne Johansen, CEO and founder of HOM, his com an 's rowth calendar Y P Y g business forum from also-ran to the area's leading full+line furniture retailer is a story of company visibility and proximity. HOM won't build a store that isn't highly earnings reports visible to motorists traveling area highways and close to fast-growing company press communities where .houses are growing like cornstalks where cornstalks releases used to grow. consumer news databank Johansen's marketing plan is a pure suburban play. everybody's business This family-owned company, with headquarters next to its giant photos showroom and warehouse on Hwy. 10 in Coon Rapids, has grown from business about $40 million in sales in 1997 to an expected $160 million this year, projects headed for $200 million next year, despite a soft economy. 2002: economic forecast HOM's sales increased 16.7 percent in 2001, ~ due diligence: compared with an increase of 1.9 percent for the - corporations and nation's top 100 furniture retailers, according to the ~ ~ ~ s~• ~=~"E accounting trade publication Furniture Today. ~ 6?* practices mail of america A key to that .growth for HOM and some other metro-areastores 10th anniversary Twin Cities furniture retailers, for that matter is the proliferation of mn tobacco big suburban homes that need the big furniture Johansen sells out of big- settlement box showrooms. But another key that sets HOM apart from its star tribune 100 competitors is a stubborn adherence to a strategy normally associated executive with fast-food restaurants, motels and gas stations: Be visible to passing compensation motorists. tittn•//u~ww etartriHnnA nnmlof~ri oc/GZG/Z i1 ZC71 O h*ml 1 1 /1 Q/'lhllll 0 For furniture retailer, HOM is where the highway is Page 2 of 5 top 25 grantmakers That way, Johansen said, those motorists will nonprofit 100 H4M'ssrrrecthomes s~ra.rnmse~:~<° remember his stores when it comes time to buy a archive `;p~,,,,~, couch. Or a bed. Or a dining-room set. stories 'V" photo reprints `4 The approach emerged from the travels of Johansen projects a ~ ~=.s and other company executives iri the early ' 90s as contact us ~ " they embarked on the conversion of their HOM Oak corrections Honn's sales & Leather stores to full-line furniture outlets. #eedback "We traveled around the United States and visited 70 of the tap 100 furniture retailers in the United States, and we found what makes a furniture store successful," Johansen said. "Many of the stares we saw, as long as they could be seen, even if it was a little hard to get to, they could be successful." So the company's growth plan became a search for store sites you can see on your way elsewhere. The huge HOM sign in front of his big-box stores, he said, is "like a billboard for us." "I can't Warne businesses. that I drive by every day because they're hidden in these little shopping centers and they don't have a very good sign," Johansen said. "'We spend a lot of money on advertising, and most people screen mast of that out until they're interested in the product. What we want the day they beeorne interested in the product is for them to say, 'I know where that store is. That's the one you go by.' " HOM waited five years to put a store in Plymouth because Johansen couldn't find a location that met his drive-by criteria. Recently, the company opened its largest store in a farmer warehouse at the intersection of Interstate Hwy. 494 and Rockford Road. in Plymouth. Last spring, its choice for a Lakeville store was at the high-traffic intersection. of Interstate Hwy. 35 and County Rd. 50. The Woodbury store is near the convergence of I-94, I-494 and I-694. The headquarters HOM store on busy Hwy. 10 carries commuters from the booming northern suburbs through Coon Rapids on their way south and east toward Minneapolis and St. Paul. "Anybody that drives around this town for an hour is going to see one of our stores, and maybe two or three of them," Johansen said. In addition to being seen, HOM wants to be close to the home-building action, and that's the suburbs, which are expected to absorb most of the 1 million new metro-area residents coming by 2030. "New housing is important to us," Johansen said. "If all of a sudden they said we're going to bulldoze a large section of downtown [Minneapolis), that would be very important to us. A new household probably spends five or six years' worth of furniture dollars in one year. So wherever. L.t+...//......... ..~....r.-: 4................/..r..«:..../C'}C/'}A'}Gl11fl La.YI 1 1 H o/'1Ann For furniture retailer, HOM is where the highway is Page 3 of 5 they're building new houses is important." Community niche Dwight Picha, community development director for the city of Woodbury, said HOM has picked the right sites near the right suburbs. "They've selected communities with high growth and high income," Picha said. Picha and officials of other communities with HOM stores praise the company, which is owned by Johansen, his brother, Rod, and the third partner, Carl Nyberg, "who's worked for us since high school," Wayne Johansen said. Bob Erickson, city administrator of Lakeville, said he appreciates the tax-base boost that comes from stores such as the Lakeville HOM, which opened last spring. But. there's more to being a good retail citizen than paying the $250,000 in property taxes that will come from the superstore's $8 million assessment. "One thing Wayne Johansen never asked about was taxes," Erickson said. "His corporate philosophy i what's good for the community is good for their business." Erickson said HOM gave the city two acres of land (worth about $500,000) so a new traffic-easing frontage road could be built at the congested interchange of I-35 and County Rd. 50, and the company shared the cast of the road construction. "That's extraordinary," Erickson said. At apre-opening gala, HOM sponsored a silent auction of furniture that raised $18,000 far,the new Lakeville Area. Arts Center. Another benefit of getting a HOM store, Erickson said, is that the site chosen by Johansen wasn't suitable for other types of bigbox retail, such as a Cub Foods store. Because the interchange is already a bottleneck on the overloaded north-south interstate, the city wanted a business that wouldn't generate large numbers of additional cars. Furniture stores, even huge furniture stores such as HOM, rely on fewer customers spending more dollars a formula that's different from most other big stores. "We're the perfect large neighborhood-site retailer," Johansen said. "We don't generate a lot of traffic like a grocery store or a Target. All the traffic we do generate is off-peak. It's on the weekends and in the evenings, and that's when the freeway systems are wide open." In Plymouth, for example, the city didn't want an old warehouse on I- For furniture retailer, HOM is where the highway is Page 4 of 5 494 to be converted into a Best Buy or a Target, Johansen said, because those kind of stores would generate high traffic volumes in the neighborhood. Anne Hurlburt, community development director for Plymouth, said: "The building in Plymouth was actually a reuse of a large distribution warehouse that had been closed. HOM has remodeled that, and it fit fairly well with the previous use of the site and also provided a product that was not available in Plymouth. We had no furniture stores in the city." Sales heritage Johansen's chain of two-story furniture stores is the fifth retail concept Wayne and brother Rod have tackled since they got a taste of the sales game by peddling their grandmother's eggs in their Sioux City, Iowa, neighborhood when Wayne was in second grade. After high school, he began selling imported leather and jewelry from Mexico, which evolved into shops called JC Import shops. Then, the Johansens started the Water Bedroom chain, which faded when water beds lost popularity, leading to a bedroom furnishings company called Total Bedroom. When HOM Oak & Leather was started in 1990, Johansen knew he would eventually broaden that specialty-furniture concept into full-line furniture sales, which he did in 1997. He began converting the Oak & Leather stores into HOM stores and finding sites on highways for new HOMs. Today, the company has superstores in seven Twin Cities suburbs and one each in Sioux City, Iowa, Sioux Falls, S.D., Fargo, N.D., and, soon, in Hermantown, a suburb of Duluth. Johansen said 90 percent of the company's revenue comes from the Twin Cities suburbs. The stores display room settings of mostly large furniture for the great rooms, master suites and finished basements found in many new houses. But the company is testing a line of furniture called EQ3, which Johansen describes as "clean European styling, simpler, and not quite as heavy" for smaller, more urban spaces. The aggressive pricing strategy follows the philosophy of other high- volume, low-margin retailers. And costs are held down by a highly automated warehouse in Coon Rapids that can store a huge inventory for rapid shipment to locations near the showrooms where the selections were made. Other furniture retailers, such as Slumberland, are succeeding in the suburbs with aggressive pricing and volume purchases. But no one is doing it with the freeway billboard strategy that HOM has embraced. For Johansen, success is about being seen, not necessarily being accessible. Once you spot that massive logo, Johansen said, your job of shopping at HOM has just begun. You'll probably have to make several turns once t,~....ii..,...... ~«....r..:t..,.,o,.,.,....i..~,...:o~ic2cizn~c~~n ~.+..,t i ~i~ot~nrn F For furniture retailer, HOM is where the highway is Page 5 of 5 you leave the highway before you're in the parking lot. "In Woodbury, you have to go a full mile or better past our store and take the frontage road back," Johansen said. "People will fight to get to us if they know where we are." Larry Werner is at lwerner~~startrvrcne,cvfat. Return to top t3 Copy_right 20012 Star Tribune. All rights reserved. ~attn•//avavav otnrtrihnna nnm/ctnrimn/CZG/ZAZG'71 O 1.*ml ~ i /i Q/~nrn The Developer - November/December 2002 Page 1 of 2 T~~ corn ,~,'~~•enzf.>er/I>ecc~lrrl>c>r. %'llttZzznn EDAM Member News To submit your personal or organizational news for publication in The Developer, please e- Cover Story mail kellyb@ewald.com. From the President EDAM Member News Broadway Plaza News from Maple Grove Upcoming Events Adolfson & Peterson Construction The City of Maple Grove continues to announced the start of construction for the work with Opus Corporation and • December 8 - 10, 29-story Broadway Plaza project, located at landowners to develop a 53-acre site as 2002 MAEDC the corner of Broadway and 1st Street in part of phase two of the awazd-winning Competitiveness downtown Rochester, Minnesota. This Arbor Lakes Development. This project Conference - luxury residential building will have 146 will be known as The Shoppes at Arbor Swissote% Chicago, IL apartments with street and skyway level Lakes and will encompass 411,000- Notes for EDAM retail shops and restaurants. Construction square-feet with approximately 50 inline Members will be completed by early Spring 2004. upscale retailers and restaurant concepts Total development casts are estimated at (with five outlot restaurant locations). Development News $60 million. • DTED Wins Two MCDA News Awards of Excellence Cottage. Grove Greener Due to The Minneapolis. Community • Minnesota Economic Development Development Agency has recently Trends Honored for Although the new Gateway and other completed consolidating its downtown Excellence developments sometimes necessitate the staff into the Crown Roller Miil building • Minnesota Exports removal of trees, the city is working with (the Property and Construction Remain Stronger than developers to find creative ways to ensure Management Department will continue to Nation's that the city remains one of the most be housed in a field office). nature-friendly and beautiful in the area. • Minnesota One way the city is showing its OakRiver Technology Breaks Ground Manufacturers Expect commitment isby preserving trees that OakRiver Technolo a leadin su her Stability in Late 2002 must be cleared due to recent gy' g PP of design and manufacturing services to • Northstar Commuter developments. .the medical device and electronics Rail industry, broke ground on a new design • Phalen Corridor Project The city of Cottage Grove will be and manufacturing center located just Director Presents at transplanting trees from the development northeast of the I-94 & I-694 interchange 1st International are in and azound Oakwood Park to park in Oakdale. BrownFrelds locations throughout the city. While the Conference in Spain majority of the trees will come from Key features of the new facility include an • Dark Cloud, Silver Oak~`'ood Park,. several trees wilt also be engineering development and prototyping Lining moved from the properties of previous area, a significantly lazger production and residents who were .located in the 7700 clean room space, and increased block of Harkness Avenue. These trees will conferencing and training facilities. The ADAM thanks its also be replanted in parks around the city. new facility will more than double the Medallist Members ;company's current space located at 6866 for t~'telr SUppOrt... Jerry Brown Appointed New Executive 33rd Street North in Oakdale. In addition, Director of Economic Development in it will qualify as a "Generation Green" Kandiyohi County building, as it was developed with Starting his business career at Proctor & materials that promote energy Gamble as a salesman, Jeny went back to conservation. school nights and received a Master's Degree in business with a major in Wright County advertising. From Proctor & Gamble, Jerry The Economic Development Partnership - moved on to successfully manage business of Wright County has recently hired Noel units for other billion dollar companies, LaBine as executive director. The including Warner Lambert Pharmaceutical, Economic Development Partnership of ~ ~ International Multifoods and Carlson Wright County is anon-profit, Companies. public/private partnership that mazkets the county and its cities fir hncinecc http://www.edam.org/newsletter/NovDec2002/Membernewsnovdec.htm 11/04/2002 The Developer - November/December 2002 Page 2 of 2 rT New Boise Distribution Center in development and retention. As executive• Thanks! Lakeville director, LaBine is responsible for all Boise Building Solutions is currently activities of the Partnership-including constructing a new facility in Lakevlle's marketing the county for new industrial Airlake Industrial Park, with plans to open business development, providing financial Submit your news f'or in July 2003. The new building materials resources for existing and expanding publication in The lleveloper. distribution center is being erected on a 14- businesses, and increasing the membership Next Deadline is: December acre parcel with rail access, south of base of the partnership. 10. Co.ltd. 70 and west of C.H. Carpenter Lumber. The facility will incorporate an outdoor storage yard and a 72,000-square-foot enclosed warehouse with 7,000 square feet of office space. The facility will operate as a building materials distribution center serving the surrounding 300-square-mile area. 2ti~)? E% ~r e =ic i~ztic+iepnicut AS ~xaa;tiora of ~4imtz.~snt~;Tit7A~9~ l~f iZit;irty It cr~•c;l. n http://www.edam.org/newsletter/NovDec2002/Membernewsnovdec.htm 11/04/2002 ©2002 Law Bulletin Publishing Co. November ~~u~ wot~dbu interchan: e should s ur p more rowth ONE OWNER LOOKS FOR MORE RETAIL by john Mulford _ tth the ,~r;uid opening of a new inter- Wch tnge cu InteceCtt~ 494 last week, the rapidly growing city of Wocxibury took anoth- er step toward adding even more develop- ment. Lcxated at Tamarack Road, the $23.9 mil- lion interchange is state of the art, with an overpass and a folded diamond design. Tama- rack Rck;d is rouhly halt:vay between Valley Crest: Road and the interchange at interstates 494. 94 and 694. fiat only is life m:~de easier for :local motorists with the. huildin<_ of the new inter- ~han,*e, but city ofticiah see the. area as another lcnation for future commercial bevel- ~~pntent. nutjurity of about 200 acres of bevel- . upahlc land near Qie intersection is controlled by two major landowners: A partnership of six individuals called the Dohlim Partnership, which owns about 6~ acres; and St. Paul- based JLT Group. owner of about 60 acres. Several other landowners have smaller parcels. "While we are anticipating development there, we really weren't thinking it would happen before the interchange was complet- ed -the economy has an effect on that,".says Janelle Schmitz, the city's economic devel- opment coordinator. `'But with the comple- li~n of the interchange, the land gains more visibility and we're anticipating that things will strut happening:' Funding for the interchange came from a variety of sources, including federal highway funds, municipal state highway funds, tax abatements, and the Minnesota Department of Transportation. Most of the developable land near the new interchange is tuned business campus and is part of a land-use area the city calls "places to work:' arhich calls for office, office/show- ruom. office/warehouse, light manufacturing, rese;trch and development, restaurants, possi- blv ah~tel, Borne retail as part of an overall play:. Acc:urding to Bruce Malkerson, an a~~o~- Woodbury . i.:- ~ . SPECACTIVfTYfrom previous page i ,x7~a'-,q, ~ y)~, s~ ~ ,.:..challenges weih a~heavtly polluted. site. ~ _ v ; . ,:nom ~ . ~ ° ~ rv ~ Port :authority officials have called the ~ t • " ;~artnershipwith Ryan a creative way to Frnm laat?e t =et the last, undeveloped parcel of land. ~se~ repre~.enting the Diyltlstn ~±artnersh,l, ~ klnerpy Park developed. The land is ~ tt"~;rec E ;the ?attd is hi~1.. Tlt~ lrirtner~l ;1, - ~ ~ ~ , ~ , yrt- Dormer Koppers Coke: site and is • _ E, nR~~netf the land. U htc;h i;~ on the e<_,- t ~ ~ .:1 oat the federal Superfund list, t~; t «ncc the =~60~; and nteft~ ' a ~ 'Fy n .E~ttn~ it has serious environmental .,e?I ~t ~t~ wuv~. +l..K, ~ is, `+tPiTt4. ~ ;i t`c ~Ei n~?otta}t "t~~ tl~ ~ _ ~r.'y.""`.•.~«..~..u .r. 1 ~ - - tt andthe 15ort authority arepur-' ~t~re~s~La4 ~4r~~~~rlopers.•' ~s3,dke ~ . , t ~ ;different types. of funding to help t-{~ ti~.~,~ah9 no[ mine rt i? ~ t~erriediatiott costs, f,~ueenan says. : ~ future t . ~ ` , ~ , ` ' waiting. fc~r a final res~imse ~ttti;. _ _ . . °l-,e Minnesi~ta Pollution Control _ ;-tlt~i:• s~l> ~ t ' ='~r , heforebe~ginningcleanup: , ~,;;i_- : r,e, ; {'e're awaiting dome environmen- ~ ~ta~ s ~ -;t~ueci in iasa ;,sts to comp in," Queenan' says. 'rgt,°~ ,A~t;~i pct; to a~ n i .~c _,ty ~ - e' `1[ evaluate ts'te remediation costs apt ~c~r thy,'.. y~t•operty,` *~ay;-,, _ 's"e we pull the t:rt,Qgel." 14if'st+,c:. ttc' Ekt't;`l` F"t3ti:r sal1C$tSwFiCF iii r cleanu costs.. are. within reason, , ~ - p .ire ;ire t .ierr~, fEQUi~n ~~ttd 3I_T Cirot~p MR~~ FrLE ~=,r,=,, ~tseenan anticipates beginning remedi- tnteRested in~dotn~, ju4t that. Tt•aoieti R~-; ation the first week. of December. The he is not c<>n~~in~;ed ene :rtL• 'L .k~neet~t ~ ~PVt~ interchange cat 1-~Q4 and Tamarack Road is expected to (cad fio new develop- building would open next August. zoning for the area ;nciudes ca~iough t2tei.i?. sr,~:nt, The facility would be a brick:;and •`What we see as the lest use there t~:t block building with lots of glass line. It large mixed-use development, perhaps would have 18-foot clear heights and with a lifestyle center." says 'Crooien, t quality hotel, krke the t~4arriot at C7pus's density there, along with some retail,'° about 390 parking.°stalls. ;The quoted whose land is on the west side of I-49~. development in Minnetonka." 'trooten Schmitz says. "We'd like to see somF taller neYlease rate for shell space is $5.50. "We a tee with the cit that the ro ert - says. "We,re going to be cooperative with office buildings there as well:' "We've had a number of .prospects should include a certain amount o dens the city. but we're doing to make our pitch The new tnterchange is Woodbury's look at the building, and we're in vari- t and should brio in new obs, but a ro_ ~~>r what we think is the best use. It does- seventh with major freeways. Most have ous stages of courtship, bu.t no deals are posal that we would came up with would n"t all have to happen at the same time, but been flanked with major development, signed," Queenan says. do that, too" ~~ne thing is for sure, you can't force a including retail, office and industrial. Trooien called the area a " atewav" tr. 3tX)=~ square foot office building:' The city, which now has about 55,000 Liz Wolf is a Twin. Cities-based free- Woodbury, saying the. new interchange is In order to build a project like the one residents, is expected to continue growing. lance writer and the former editor of a "big deal" for the city. envisioned by Trooien, a developer would Projections show the population growing the Minnesota Real Estate Journal. need a rezoning and an amendment to the to about 85,000 in 2020, with the city 'What we can see happening is the city's comprehensive plan, says Schmitz, being fully developed by '?035. lifestyle center would be part of mixed-use '1'~ project that could include restaurants and the~economic development coordinator. The city would like to see a certain FOR IMMEDIATE RELEASE November x, 2002 CONTACT: David Olson, Director of Community & Economic Development, 952-985-4421 Grant for affordable housing awarded to City of Lakeville, Dakota County CDA The Metropolitan Council has awarded $195,000 to help finance the development of Lakeville Family Townhomes 3~~Addtion, which will be located at 205th St. W. and IberiaAve. The 40-unit development is a cooperative effort between the City of Lakeville and the Dakota County Community DevelopmentAgency (CDA) to create rental housing affordable to low and moderate income working families. Mayor Bob Johnson said, "LakevilleFamilyTownhomes 3rdAddition is the third CDA affordable rental townhome development in the community. We appreciate the grant award and are pleased to be able to provide additional affordable rental housing for our residents." The Metropolitan Council pledged its support to the development by awarding a Local Housing IncentiveAccount (LHIA) grant. LakevilleFamilyTownhomes 3~dAddition was one of only four developments to be awarded such funding. The prof ect was able to compete for LHIA funding because the City ofLakeville participates in the Livable CommunitiesAct, a Metropoli- tanCouncil program that encourages all communities in the metropolitan area to create healthy communities through smart development and redevelopment choices. Through the Livable Communities Act, the Council awards grants to cities to clean up polluted land, create model developments, create affordable housing opportunities and create inclusionary housing incen- tives. (more) City of Lakeville 20195 Holyoke Avenue • Lakeville, 117N 55044 • (612) 985-4400 • FAX 985-4499 http.•//www ci.Lakeville. mn. us Page two, Metropolitan Council grant... Lakeville FamilyTownhomes 3rdAddition was also awarded $802,181 fromthe Minne- sotaHousingFinanceAgencythrough itsEconomicDevelopmentHousing Challengeprograrn, $243,000 from the Family Housing Fund, $250,000 from the Dakota County Housing Opportunities Enhancement (HOFE) Fund and $2,931,050 from the Low Income Housing Tax Credit program allocated by the Dakota County CDA. The CDA expects to begin construction in 2003 of the eight buildings featuring one-, two- and three-bedroom units. The site also will include a tot lot and central community gathering space. The townhomes will be available to families with incomes below 60%ofthe area median income, currently $46,020 for. a family of four. The rent. amounts will be limited to an affordability standard of 30% of gross monthly income, which in the past has averaged $5 SO for atwo-bedroom unit. -30-