Loading...
HomeMy WebLinkAbout02-27-01 Economic Development Commission February Regular Meeting agenda ~ Gity of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, February 27, 2001, 6:00 p.m. Appro Development 29476 Grenada Avenue, Lakeville ,3 1. Call meeting to order. 2. Approve. February 15 2001 Special Meeting Minutes. 3. Incentive Study. A.) Review Springsted's Matrix of Lakeville. Issues. and Incentive Options. B.)'Review of business interviews. . 4. `High Tech Subcommittee update. , 5. Review and Update of Strategic Planning Process. 6. Park Dedication Fee Subcommittee update. 7. Annual Development Project Feedback Report. 8. Prospect/Inquiry Report. 9. Airlake Airport Facilities update. y, 10.. Adjourn. :2001, February 27 1 G:\AFIad1ECONDEVtEDC\2001mtgs\ZFebruary 27\010227agenda.doc Economic Development Commission February Regular Meeting Agenda For Your Information: 1. Metropolitan Population Growing. Using U.S. Bureau of the Census figures, a chart depicts the growth of 13`Twin Cities area counties. Of the thirteen metropolitan statistical area counties analyzed, Dakota County is the third largest, followed by Hennepin and Ramsey counties. However, it is only the eighth-fastest growing county of the 13 studied. 2. Message from fhe State Fire Marshall Division. This article introduces the new International .Fire Code and the status of its adoption. Minnesota Fire Chief, January/February, 2001, p. 45. 3. 2001 City Improvement Projects. Attachments: 1. The .Imperial USPS: When It's Time To Build A New Post Office, Towns Often Have Little Input. Governing, February 2001, p. 18. 2. The Gray. Team: Averaging Age 70, Staff In This Cosmetics Plant Retires Old Stereotypes. WaII Street Journal 3. Block Granf to Benefit Downtown, Homes. Sun Current, January 12, 2001:. 4. As State Economy Booms, Electricity Shortage Looms. Star-Tribune, Tuesday, January 2, 2001... 5. Mixed-use Project Proposed in Lakeville. REJournals.com b`': Lakeville Ok's Luxury Apartment Complex. REJournals.com k 2001. February 27 2 G:WFIad1ECONDEVIEDC~2001rntgs~2February 271010227agenda.doc Economic Development Commission Meeting Minutes February 15, 2001 ~t<C ~TOa City of Lakeville Economic Development Commission Special Meeting Minutes February 15, 2001 7:00 p.m. City Hall Lunch Room Members Present: Commissioners Schubert, Miller, Tushie, Pogatchnik, Brandy, Vogel, Emond, Ex-Officio member Bornhauser. Members Absent: Commissioners Matasosky, Alternate Commissioner Erickson. Others Present: Robert Erickson, City Administrator; Arlyn trussing, Community & Economic Development Director; Ann Flad, Economic Development Coordinator. 1. Call Meeting to Order. Chair Vogel called the meeting to order at 6:53 p.m. in the City Hall Lunch Room. 2. Approval of January 27, 2000 Regular Meeting Minutes. Motion 01.06 Comms. Tushie/Miller moved to approve the minutes of the January 23, 2001 meeting. All in favor. Motion carried. 3. Airlake Development -Park Dedication Fee Status lJpdate Discussion ensued about motion 01.04 made at the January 27, 2001 meeting in which "Comms. Tushie/Miller moved to inform the City Council that the EDC intended that property owners affected by park dedication changes would have the option to pay their park dedication fees in advance of the new rate's effective date,. and the EDC recommends the Council accept payment consistent with rules that were in effect prior to rate's increase. Comm. Matasosky had abstained. All others in favor. Motion carried." Mr. Robert Erickson indicated that the Regans, dba Airlake Development, had approached the City Council several times via letters from their attorney in an attempt to negotiate a park dedication payment lower than the formula that. the ordinance prescribed. At a City Council work session regarding Airlake Development's pre-payment of park dedication fees, the Council discussed the following: 1.) concerns about setting a precedent by accepting prepayment of park dedication fees, and 2.) the City Attorney's concerns with the terms of Airlake's proposed agreement regarding park dedication fees. Comm. Tushie questioned whether park dedication fees had ever been pre-paid in the past. Mr. Erickson indicated that the City did accept prepayment of park dedication fees from one party in the past. Because this pre-payment of fees was part of a pending litigation settlement its acceptance is not considered a precedent for allowing others to pre-pay park dedication fees. 1 G:WFIad\ECONDEV\EDC\2001mtgs\2February 15 Special\021501 min.doc Economic Development Commission Meeting Minutes February 15, 2001 Mr. Erickson noted that the Park Dedication Subcommittee had not had the opportunity to review nor comment on the issue of pre-payment of park dedication fees by Airlake Development. Mr. Erickson also suggested that the City Attorney could be consulted by the subcommittee to discuss legal matters related to the agreement and acceptance of pre-paid park dedication fees. Motion 01.07 Comms. Tushie/Miller moved to revisit motion 01.06 approving the meeting minutes of January 23, 2001. All in favor. Motion Carried. Motion 01.08 Comms. Tushie/Miller moved to approve the January 23, 2001 meeting minutes with an amendment to motion 01.04 to read "the EDC anticipated that property owners affected by park dedication changes would have the option to pre-pay their park dedication fees in advance of the new fee's effective date, and thus the EDC recommends that the offer of Airlake Development to pre-pay park dedication fees be reviewed by the Park Dedication Subcommittee and a recommendation be brought to the Economic Development Commission and the Park Advisory Board for their consideration." All in favor. Motion carried unanimously. 4. United States Postal Service Facility -Heritage Commons Mr. Erickson indicated that the proposed post office development at Heritage Commons is not a bulk facility as originally proposed. In the future the U.S. Postal Service intends to locate three post offices in l~akeville, including the. possibility of a bulk facility. in an industrial area :Thus the Neri#age-Commons proposed- ps~st of;~ce will be aretail facility similar to the retail facility in fipple Valley: Mr. Grussing presented a video of the exterior of Apple Valley's facility, including views of the entrance, customer parking area, employee and carrier vehicle parking lot, and fencing. Mr. Grussing also indicated that a preliminary sketch of the site layout provided by the U.S. Postal Service will need to be revised to include a re-orientation of the building on the site, maintain the traffic circulation originally designed for Heritage Commons, accommodate the space for a grocery store, and to accommodate employee and U.S.P.S. vehicle parking behind the facility. Mr. Erickson also indicated that the Bernardi family, as the property owner of Heritage Commons, has retained the services of a property broker to attract additional development to the site. 5. Adjourn. Meeting adjourned at 8:07 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R.T. Brantly, Secretary Page 2 of 2 r item 1~0.,,,.. ME~1C}F:ANDUM TO. Economic Development Commission FROM: Arlyn Grossing, Community and Economic Development Director DATE: February 22, 2001 RE: Financial Incentives Study/Implementation Strategy-Review tools available .for business incentives for economic development and recommend strategies to the City Council 4 The Springsted representatives attend the January EDC meeting and are in the process of preparing a Lakeville Pro3ect Matrix (the matrix will be attached to agenda materials). Paul .Steinman and Mikaela Huot `will. present the matrix, which includes Lakeville projects that Springsted observed from the last meeting and after their review of the EDC Strategic Plan. • This is the first draft`of approach #4 in the agreement with Springsted. This item reads, "Determine how to interface incentive policies with current economic .development plans and the City's Comprehensive Plan." The EDGrequested staff to prepare a list oflocal companies to be interviewed to'solicit 'their individual reasons for choosing Lakeville for the location to build or expand their businesses. The attached list of 15 companies will be visited by staff and EDC Financial .Incentives Subcommittee members (Pogatchnik, Brandy and Ernand) to provide insight and information to the EDC and to the financial. incentive consultant. The meetings will be conducted prior to the next regular EDC meeting. The Financial Incentives Subcommittee will be meeting on a regular basis and their suggestions and recommendations will be broughf before the full EDC. 4 85 E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN 55101-2887 651-223-3000 FAx:651-223-3002 SPRINGSTE D Advisors to the Public Sector MEMORANDUM TO: Arlyn trussing, Community and Economic Development Director Ann Flad, Economic Development Coordinator Lakeville Economic Development Commission FROM: Paul Steinman, Vice President Mikaela Huot, Project Manager CC: David MacGillivray, President DATE: February 23, 2001 SUBJECT: Discussion items for Meeting on February 27, 2001 The purpose of this memo is to discuss information gathered from the last EDC meeting, the economic development strategic plan and subsequent meetings with City staff. The issues identified in this memo provide the basis of the financial incentive study. The issues below should be a comprehensive list of the housing and economic development challenges the EDC wishes +.o address within the study.- 1) Downtown: a) Redevelopment b) New development c) Housing d) Specialty Retail e) Approved design standards 2) Freeway: a) Interchange improvements i) 60 ii) 70 iii) 50 CORPORATE OFFJCE: SAINT PAUL, MN Visit our website at WwwspringSted.cOm DES MOINES, IA • MILWAUKEE, WI MINNEAPOLIS, MN OVERLAND PARK, KS • VIRGINIA BEACH; VA WASHINGTON, DC Lakeville EDC February 23, 2001 Page 2 b) Development/redevelopmentatong freeway i) Highway 60: New development ii) Highway 70: New development/redevelopment iii) Highway 50: Redevelopment 3) Retail Development: a) Enhance the linkage between Heritage Commons (big box and strip retail stores) and Downtown (specialty shops and niche retail) b) Heritage Commons -retail (new) development c) Retail development in other areas d) Grocery store and .restaurant development 4) Community Enhancement: a) Architectural/aesthetic i) Corridor/Gateway study implementation ii) Design standards implementation 5} Business Attraction: a) Industrial/manufacturing b) High tech i) Utilize skill set that exists among residents ii) Match residents with jobs available iii) Address the challenges of "commuter" syndrome c) Medical facilities d) Office development 6) Business Retention and Expansion: a) Retention b) Expansion Lakeville EDC February 23, 2001 Page 3 7) Housing: a) Affordable -low to moderate income i) Rental ii) Owner-occupied iii) Senior b) Life-cycle 8) Public/private Infrastructure: a) Water b) Sewer c) Storm Sewer d) Airport e) Parks and Trails f) Roads g) Rail h) Fiber optic i) Other utilities Wausau Supply Performance OfFice PaperM ~ ~ mm _.m._~.. _......~.___a :Parker Hannifin w.___~... . Merrillat Industries ~ ___.rv...... _.__._rv ,m~__W W_ 'Menasha Packaging "J&E Manufacturing _ _ jJ & J Imperial Plastics Heat-n-Glo _w___ ~ ~ ._~m _ ~ _ m.m..,, =DR Horton _ _ w. _ ~ . _ Digidio _ _ r.~__ ..w.. ~ _ .,DHY =Delmar _ _ _ . kApplied Power Products _ _ Allison Specialty Components Tax Increment Financing (TIF) in Minnesota Concepts and Mechanics February 2001 1 i ~v Corporate Headquarters: 85 Seventh Place East Suite .100 St. Paul, MN 55101-2887 651.223.3000 651.223.3002 Fax Des Moines Office: Kansas City Office: Milwaukee Office: 100 Court Avenue 7211 West 98th Terrace 8651 North Port Washington Road Suite 204 Suite 100 Suite A Des Moines, IA 50309-2200 Overland Park, KS 66212-2257 Milwaukee, WI 53217 515.244.1358 913.345.8062 414.247.8686 515.244.1508 Fax 913.341.8807 Fax 414.247.8649 Fax Minneapolis Office: Virginia Beach Office: Washington, D.C. Office: 520 Marquette Avenue 1206 Laskin Road 2121 K Street NW Suite 900 Suite 210 Suite 800 Minneapolis, MN 55402 Virginia Beach, VA 23451-5263 Washington, D.C. 20037 612.333.9177 757.422.1711 202.261.6505 612.349.5230 Fax 757.422.6617 Fax 202.261.3508 Fax advisors@springsted.com wwwspringsted.com Introduction Tax Increment Financing (TIF) uses the increased property taxes generated by new real estate development within a tax increment financing district to pay for certain eligible costs associated with the development. The value that is "captured" (i.e., the increase in value over the year the TIF district was established) generates property taxes. These "incremental°' taxes go to the development authority or the city authority rather than to the city, county, school district, or other taxing jurisdictions that normally share in the total property tax bill. The captured taxes are used to subsidize eligible project costs such as land acquisition, demolition, public and site improvements, and related consulting and administrative costs. The value of the property prior to development (i.e., the "non- captured" portion) continues to generate property taxes which are distributed to all appropriate taxing jurisdictions. The justification for use of TIF rests solely with the "But For" test. A simple way to express this test is that the development or redevelopment would not occur without a tax increment subsidy. Critics of TIF often point to the "But For» test as the weakness in the actual use of TIF. Such critics often claim that the development would have occurred anyway, and local officials are not rigorously applying this test. The net result in such cases is an overuse of tax increment financing at the expense of the tax base of the county school district, and other taxing jurisdictions. While there have been limited abuses, this financing tool has helped to reshape and revitalize many communities. In addition to assisting core development and redevelopment, residual growth. outside of the established TIF districts provides a direct benefit to all taxing jurisdictions. In response to the potential misuse of tax increment financing, each year the State Legislature further refines the use of this financing tool. Each amendment to the statutes has, in recent years, resulted in a more complicated and restrictive financing vehicle. The purpose of this document is to outline the basic concepts and mechanics of using tax increment financing within the statutory guidelines and parameters. This report outlines the participants involved in TIF, mechanics, documents, process, a discussion of benefits and costs, and policy questions associated with the use of TIF. ~i SPRINGSTED Pane 1 Tax Increment Financing in Minnesota The material included in this report is intended to be used as an informational guideline for the use of TIF. The complete Tax Increment Financing Act can be found in Minnesota Statutes, Section 469.174 - 469.1791. Springsted Incorporated has a proven track record in working with communities in the use of tax increment financing as an economic development and redevelopment tool. Please feel free to contact us if you need further information or would like to discuss in more detail the concepts contained in the following materials. r. ~ CDD 7AT!'CTDTI Participants Section A Participants City LandownerlDeveloper Elected Officials Landowner or Developer .Advisory Commissions Attorney City Staff Fiscal Consultant: Springsted Incorporated Bond Counsel Other Governmental Jurisdictions TIF District Project County Federal Government School District State Government Other Taxing Jurisdictions Metropolitan Council, etc. County Other Municipalities u Bordering Project Area SPRINGSTED Page A-1 The Mechanics Section B Project Area (i.e., Development District) and Tax Increment Financing (TIF) District A. Financial difference between the two ? Project Area: .Area in which TIF funds can be spent (with certain restrictions). ? TIF District: Area from which TIF funds are generated. B. Geographical difference between the two ? Project Area and TIF District can be the same, or Project Area TIF District , i ? Project Area can be larger than the TIF District f TIF District Project Area #1 TIF District #E2 r~ SPRINGSTED Page B-1 Tax Increment Financing in Minnesota Types of Tax Increment Financing Districts A. Redevelopment District ? Generally a blighted area containing substandard buildings, sometimes having inadequate streets and incompatible land uses. ? Requires documentation to evaluate occupied land area. and estimated costs of rehabilitation versus new construction. ? Maximum duration of TIF district is 25 years from receipt of the first tax increment. B. Renewal and Renovation District ? Blight and obsolescence tests must be met, which are slightly less restrictive than for redevelopment TIF districts. ? Maximum duration of TIF district is 15 years from receipt of the first tax increment. C. Housing District ? Provides housing opportunities for persons and families of low to moderate income. ? Maximum duration of TIF district is 25 years from receipt of the first tax increment. D. Soils Condition District ? Where there exists the presence of hazardous substances, pollution or contaminants requiring removal or remedial action. Such costs must exceed the fair market value of the land. ? Maximum duration of the TIF district is 20 years from receipt of the first. tax increment. Page B-2 ~ SPRINGSTED Tax Increment Financin in Minnesota E. Economic Development District ? Does not meet the criteria for any of the other types of TIF districts. ? May be used only for manufacturing, production, processing, warehousing, storage, distribution (excluding retail sales), research and development, telemarketing, tourism facilities (in certain cases), qualified border retail facilities, and small city commercial facilities. ? Prohibits establishment if more than 15% of the square footage of such facilities are used for other purposes. The allowable percentage of nonqualifying square footage can be increased when such uses are directly related to or in support of the qualifying activity. ? Must demonstrate retention of local business, increased employment and enhancement of the state tax base. ? Maximum duration of TIF district is 8 years from receipt of the first tax increment. F. Other TIF Districts ? Includes qualified housing and hazardous substance subdistrict. 4 a is SPRINGSTED Page B-3 Tax Increment Financin in Minnesota Examples of TIF Eligible Project Costs ? Public improvements for street,"sewer, water, etc. ? .Land acquisition ? Soil correction ? Site preparation/demolition ? Relocation ? Financing fees and capitalized interest ? Administrative costs up to 10% of the tax increment Taxable Versus Tax-Exempt Financing Taxable Status If It Meets Two Federally Imposed Tests A. "Private Business Use Test'-Are more than 10% of the expenditures made for a private purpose? ? Types of expenditures. for improvements available to even/ resident: ? Streets, sewer, water, etc., ? Types of expenditures benefiting private parties, such as landowners/developers: ? Land acquisition, soil corrections, site preparation, etc. B. "Private Security Interest Test' -Are more than 10% of the payments of taxes and/or debt service guaranteed by the landowner/developer? ? A contract or guarantee requiring the landowner/developer to make tax payments and/or fund debt service shortfalls trigger the private security interest test. Assessment agreements trigger the. private security interest test. Page B-4 rte.. SPRINGSTED Tax Increment Financin in Minnesota .The Increment A. .Prior to forming the TIF district ? "Estimated Market Value" of properties in the proposed TIF district Estimated y Market Value ? Translated into "Net Tax Capacity" through statutory classifications Estimated Net Market Tax Value Capacity ? "Net Tax Capacity" times `Tax Capacity Rate" equals property taxes - City Net Tax Property -County Tax X Capacity = Taxes -School District Capacity Rate -Other B. When a TIF district is established ' ? The "Net Tax Capacity" is given the term "Original Net Tax Capacity (ONTC)." ? Property taxes generated by the ONTC of the TIF district continue. to go to each individual taxing jurisdiction. s Y SPRINGSTED Page B-5 Tax Increment Financin in Minnesota C. New development occurs within the TIF district ? New market value is added to the existing estimated market value. Total Total Net Total Estimated Tax Property Market Value Capacity Taxes Increase in Increase in Estimated (Captured) Tax Market Net Tax Increment Value Capacity Revenue Tax X Capacity = Original Original Rate Taxes Estimated Net to Other Market Tax Taxing Value Capacity Jurisdiction (OMV) (ONTC) D. Tax increment revenue generated by the increase in Net Tax Capacity. Increment received over the duration of the TIF district. Property Taxes Tax Increment Revenue Taxes to Other Taxing Jurisdictions Time (Years) Page B-6 rr~.. SPRINGSTED Tax Increment Financing in Minnesota Financing of Project Costs ? In many cases, the City is required to fund project costs prior to development occurring. ? .City issues general obligation tax increment bonds to finance the project costs. The possibility exists for non- general obligation revenue bonds to be issued. ? City receives tax increment revenues over a period of years and uses them to pay debt service on the bonds. ? Tax increment, bonds may be repaid with: ? Tax increment revenues. ? Other pledged revenues. ? General obligations: potential City-wide property tax levy. This situation can be dealt with through security guarantees by the landowner. ? Financial limits on the City's ability to fund project costs dictated by the amount and duration of the tax increment revenues available. ? In some cases the developer will pay all costs upfront and be reimbursed for eligible project costs over a period of time. This is generally referred to as "pay-as-you-go" financing. ? Reimbursements are made from tax increment revenues. ? This financing approach significantly reduces City liability and risk. ? If development does not occur or does not reach the levels forecasted, increment is reduced and less funds are available for reimbursement. t- SPRINGSTED Page B-7 Tax Increment Financing in Minnesota Pooling ? Tax increment revenues maybe spent outside of the TIF District but within the boundaries of the Project Area, subject to certain restrictions. ? For redevelopment TIF districts (certified after June 30, 1995) the minimum in-district percentage is 75%. The .maximum pooling percentage is 25%. ? For all other TIF districts (certified after June 30, 1995) the minimum in-district percentage is 80%. The maximum pooling percentage is 20%. ~ All administrative costs are considered expended outside of the TIF district. ? Pooled increment revenue must still be spent on T(F eligible project costs. ? New for 2000, and additional 10% can be pooled for low-income housing (must meet statutory guidelines). Considerations of LGA/HACA Effective for TIF districts approved after April 30, 1990, the City may experience a reduction in its Local Governmental Aid (LGA) and/or Homestead Agricultural Credit Aid (HACA). ? The hypothetical aid to the school district is computed as if the new TIF value was included in the school district tax base. The difference between the actual aid and the hypothetical aid will result in a reduction in aid to the City. This reduction is applied first to LGA and then, if necessary, to the City's HACA. `r Depending on the type of TIF district., the reduction may be phased. This is an annual reduction and the State Departments of Revenue and Children, Families and Learning will make these calculations. Page 6-8 ~ SPRINGSTED Tax Increment Financin in Minnesota PERCENT OF CAPTURED NET TAX CAPACITY THAT IS "QUALIFYING" Years from Economic Renewal and Assessment Development Renovation All Other R( Year of ONTC District District Districts 1 100.00% 0.00. 0.00 2 100.00 0.00 0.00 3 100.00 0.00 0.00 4 100.00 0.00 0.00 5 100.00 0.00 0.00 6 100.00 12.50 6.25 7 100.00 25.00 12.50 8 100.00. 37.50 18.75 9 100.00 50.00 25.00 10 100.00 62.50 31.25 11 100.00 75.00 37.50 12 100.00 .87.50 43.75 13 100.00 50.00 14 100.00 56.25 15 100.00 62.50 16 100.00 68.75 17 100.00 .75.00 18 100.00 81.25 19 100.00 87.50 20 100.00 93.75 21 and Over 100.00 100.00 Qualified housir?g TIF districts and certain ethanol production facilities are exempt from the loss of aid. A TIF district may also be exempt from the loss of aid if the City elects, at the time of approving the TIF plan, to make qualifying local contributions. Such contributions must be made from unrestricted funds and may not be made with tax increments or developer payments. Qualifying local contributions of gross increment): ? 10% for economic development and renewal and renovation TfF districts. ? 5% for redevelopment, soils condition, housing TIF districts and hazardous substance subdistricts. r'i SPRINGSTED Page B-9 Tax Increment Financin in Minnesota Knockdown Rules A. Time Limit Number 1: Three-Year Rule ? Within three years of certification, one of three things must occur for district to remain alive: ? Bonds are issued to aid the project ? Authority acquires property within the district, or ? Authority causes public improvements to be constructed within the district B. Time Limit Number 2: Four-Year Rule ? Increment will not be collected from a particular parcel unless, within four years of certification, demolition, rehabilitation or renovation of property or other site improvements has occurred in accordance with TIF plan. ? If a parcel is "knocked down" and later improved, it can be reinstated in the district, but at the market value at the time of reinstatement. C. Time Limit Number 3: Five-Year Rule ? For increment to be considered a spent expenditure within the TIF District, one of the following must occur within five years after certification of the district: ? Increment is paid to a third party for a TIF eligible expenditure ? Bonds are issued to a third party and proceeds are expected to be spent within five years. ? Binding contracts are entered into with a third, party for performance of an activity and. increment is spent .under the contract, or ? Costs are incurred by a "party" and revenues are spent to reimburse that party. Page B-10 SPRINGSTED . The Documents Section C Development. District Program ? This document (or equivalent document, i.e. Redevelopment Plan) establishes overall guidelines for the project area boundaries and the type and level of improvements to be constructed or acquired.. This document does not establish the TIF district. Tax Increment .Financing Plan ? This document establishes the boundaries. of the TIF district, the expenditures and financing limitations, and starts the process for collection of tax increment revenue by the City. ? The Development District Program and the Tax Increment Financing Plan can be drafted either concurrently or the Development District Program can be drafted first and the TIF Plan later on. Development Agreement A. This document is a contract between the City and the landowner, stipulating the obligations of each party. The Development Agreement usually requires the landowner to: Construct a development within a certain time frame with a specified minimum size and market value: ? Provide guarantees ensuring the timely completion of the development, and may require prompt payment of property taxes and debt service shortfalls. The Development Agreement may require the City to construct public improvements and/or purchase land fi 'm associated with the new development according to an agreed upon schedule using the expected tax increment revenue. B. Terms of this agreement may well dictate whether bonds are tax-exempt or taxable. C. Many cities currently require a Development Agreement on all new developments. SPRINGSTED Page C-1 Process for Establishment Section D R In order to establish a TIF district, a specific process must be followed including the following. A. At the outset, a Development District Program (or equivalent document) must be prepared. This sets forth the general goals for development or redevelopment in the project area. B. A Tax Increment Financing Plan must be prepared. This sets forth the specific project(s) to be undertaken, costs involved, revenues projected and is the guiding document for the proposed project. C. A public hearing on the TIF Plan and district must be conducted. Notification of the public hearing must be published 10-30 days prior to the hearing. D. A TIF district "fiscal and economic impact" letter, along with a draft TIF plan, must be received by the county and school district at least 30 days prior to the public hearing. For housing and redevelopment TIF districts a notification letter to the county commissioner must also be received at least 30 days prior to publication of the public hearing. E. The City planning commission must review the TIF Plan and Development Program prior. to City approval F. At the public hearing, all interested parties are invited to express their opinion(s). G. Subsequent to the public hearing, the City must approve or reject the TIF Plan and district. H. Upon approval, the City must request county certification of the TIF district which will begin the tax increment collection process. Selected information must also be filed with the State Department of Revenue. I. Actual project expenditures may not be made until the TIF Plan is approved and adopted. SPRINGSTED Page D-1 Benefits and Costs Section E City's Perspective 3 A. Benefits ? TIF allows City to realize new development which would not otherwise occur without the use of TIF (the "But For" test). ? City can realize broader economic gains of new development in terms of employment, tax base enhancement and secondary spin-off effects: ? City can facilitate the construction of related public improvements it wishes to achieve by coordinating a TIF project with more general public improvement projects. ? City may have better control aver the nature of the development. ? City may be able to fund administrative and/or community development costs with revenue from the TIF district. ? In some cases the quality of new development is enhanced by TIF financing: B. Costs ? The City may assume the risk that property taxes might not be paid and/or changes in property tax laws or funding of local governments might cause tax increments to fall short of scheduled debt service payments. City may pledge to use other funds or genera( property tax levies to pay debt service. (Development Agreement guarantees.) ? City and other overlapping taxing jurisdictions (county, school district, etc..) must wait until TIF district is terminated until the new development becomes part of the general tax base. ? Depending on the magnitude and strategy for addressing fiscal disparities contribution on commercial properties, there can be an internal shift in property tax SPRINGSTED Page E-1 Tax Increment Financin in Minnesota burdens (for communities in the Twin Cities Metropolitan Area only). ? City may lose some of its LGA/HACA for all or a portion of the duration of the TIF district. This has a direct impact on the general fund of the City. Landowner(s) Perspective A. Benefits ? Development can proceed because TIF provides a funding source for public improvements where no other viable funding source exists. ? Without TIF the landowner absorbs the development costs of either: ? Special assessments for public improvements, and/or ? Hard costs of land acquisition and site preparation. With TIF these costs are funded in whole or in part by increment revenues and the landowner pays only his property taxes, which are the same whether TIF exists or not. B. Costs ? Usually a slightly extended development period required for the TIF process. `r Usually landowner provides financial guarantees to City securing taxes and debt service on TIF bonds (if applicable). ? Greater City monitoring of scope, quality and timing of new development. Page E-2 SPRINGSTED Policy Questions Section F "But For" Test ? In order for the City to create a TIF district it must make a finding that the new development would not occur "But For" the use of tax increment financing. ? The critics of TIF state that the development-would occur anyway and the City is simply giving funds to a private party. ? Counties and school districts are particularly interested in this finding because they wilt not realize any enhancement to their general tax base until after the TIF district is terminated (up to 26 years). LGA/RAGA -Local Contribution ? The City must determine if it is willing to invest a portion of its own funds in the project based on estimated loss of LGA/HACA and/or local contributions required. Project Area The project area, the parcels upon which TIF funds can be spent, can be the same as or greater than the TIF district. ? Does the City intend to use TIF funds beyond the .parcels from which TIF revenue will be generated? ? Does the City envision numerous TIF districts created over time within a single project area? ? Does the City have other improvement projects in other adjoining areas for which funding can be augmented with TIF? ? Does the scope of the improvement project benefit two or more TIF districts? SPRINGSTED Page F-1 Tax Increment Financing in Minnesota Lever of Assistance A. How much funding does the City wish to commit to tl'ie project? ? Demonstration by private parties of need for level of TIF assistance requested. B. Mandatory imposed limitations ? Statutory duration of the TIF district ? Tax capacity rate ceilings C. Discretionary imposed limitations ? Term of TIF district shorter than maximum permitted ? Nature of expenditures ? Do they lead to taxability and therefore higher interest rates yielding lower net bond proceeds? ? Pace of development ? How soon will development occur? ? Fiscal disparities option on commercial-industrial developments in the Twin Cities Metropolitan Area and Taconite Tax Relief Area. Page F-2 SPRINGSTED Tax Increment Financing in Minnesota Fiscal Disparities ? State law requires new commercial-industrial properties in the Twin Cities Metropolitan Area and Taconite Tax Relief Area to contribute up to 40% of their valuation to an area wide pool for distribution back to all local taxing jurisdictions. ? For TIF districts with new commercial-industrial development, the City must decide whether the fiscal disparities contribution will be made from valuation within the TIF district or from commercial-industrial properties located within the City but outside of the TI F district. ? New economic development TIF Districts must have fiscal disparity contribution made from within the TIF District (no option). ? How does this affect the TIF district and related increment revenue? TIF District Net Tax Capacity Without/With Fiscal Disparities Contribution Without With (Option A) (Option B) Captured Net Tax Capacity Captured 60%) Net Tax Capacity Fiscal Disparities Contribution 40%) (ONTC) (ONTC) SPRINGSTED Page F-3 Tax Increment Financing in Minnesota Over the life of the TIF district. Without Fiscal Disparities Contribution (Option A) Net Tax Capacity Captured Net Tax Capacity Original Net Tax Capacity Time (Years) With Fiscal Disparities Contribution (Option B) Net Tax Capacity CapturedeNet Tax Capacity Fiscal Disparities Contribution Original Net Tax Capacity Time (Years) Page F-4 SPRINGSTED Tax Increment Financing in Minnesota C Primary Impacts If the fiscal disparities contribution comes from the TIF district, less increment revenue results, which restricts the level of funding for the project.. k~ If the fiscal disparities contribution comes from outside the TIF district, the converse is true, that being an increase in the level of funding. Secondary Impacts With the fiscal disparities contribution being made from outside the TIF district, the amount of the contribution must come from other commercial-industrial properties within the City. ? The potential exists for City tax rate increases dependent on the relative magnitude of the new development to the City's total tax capacity. With the fiscal disparities contribution coming from outside of the TIF district, the City's total gross tax capacity is reduced by both the TIF captured tax capacity and the fiscal disparities contribution. This can lead to a potentially higher City tax rate. i i SPRINGSTED Page F-5 _ _ Tax Increment Financin in Minnesota City Security Guarantees A. Usually when TIF bonds are sold they are genera( obligation bonds. General obligation TIF bonds require that if increment revenue is not sufficient to pay debt service at any time over the life of the bonds, then the City is ultimately required to .levy City-wide property taxes to repay the bonds. B. How can this occur? - ? New development is constructed over a longer time frame and/or to a lesser market value than "was represented to the City at the time of approval; ? Property owners don't pay their taxes on time; ? Property owners pay taxes on time, but with .decreases in tax capacity rates caused by changes in the funding of local governments or tax structure changes, actual property tax payments are less than scheduled debt service. C. How does the City protect itself? ? Assessment agreement stipulating the market value of new development and schedule of completion. ? Withholding bond proceeds or delaying construction of public improvement until all or a portion of new development is completed. ? Liquidity guarantees (letters of credit) provided by property owners ensuring timely payment of property taxes. ? Liquidity guarantees (letters of credit} provided by property owners covering debt service shortfalls regardless if taxes are paid on time. Pay-as-you-go: No debt is issued. The landowner finances his own improvements and is reimbursed over time by the City from the actual collection of increment revenue. D. The type of guarantees depends on the level of risk the City perceives itself to be exposed to. Page F-6 cnu t~r~c~rrr~ Tax Increment Financing in Minnesota City Administrative Costs The establishment of a TIF district and the negotiation of a thorough Development Agreement requires substantial time commitments by City staff and its consultants. A large portion of that time is expended prior to the signing of the Developer Agreement and before actual construction of the new development. Furthermore, additional -City staff time is needed to monitor and report on the performance of the TIF district over its life. The legislature has anticipated these City costs by providing for a reimbursement for administrative costs. This reimbursement is limited to the lesser of 10% of project costs or 10% of increment ij revenue, and is intended to coverall staff and consultant costs other than engineering. The City should consider two relevant policy questions. ^r Does the City wish to receive a guarantee of its costs from the landowner for the period from inception of the Tlf process until signing of the Development Agreement? This. guarantee covers the situation whereby the project terminates during the negotiation phase. ? What is the appropriate level of administrative cost reimbursement? i F r errs t~T~c-rrr~ r,_ _ r Tax Abatement in Minnesota Concepts and Mechanics February 2001 Prepared by: Springsted Incorporated Saint Paul, Minnesota Corporate Headquarters: 85 Seventh Place East Suite 100 St. Paul, MN 55101-2887 651.223.3000 651.223.3002 Fax Milwaukee Office: Des Moines Office: Kansas City Office: 8651 North Port Washington 100 Court Avenue 7211 West 98th Terrace Road Suite 204 Suite 100 Suite A Des Moines, IA 50309-2200 Overland Park, KS 66212-2257 Milwaukee, WI 53217 515.244.1358 913.345.8062 414.247.8686 515.244.1508 Fax 913.341.8807 Fax 414.247.8649 Fax Minneapolis Office: Virginia Beach Office: Washington, D.C. Office: 520 Marquette Avenue 1206 Laskin Road 2121 K Street NW Suite 900 Suite 210 Suite 800 Minneapolis, MN 55402 Virginia Beach, VA 23451-5263 Washington, D.C. 20037 612.333.9177 757.422.1711 202.261.6505 612.349.5230 Fax 757.422.6617 Fax 202.261.3508 Fax advisors C~?springsted. com wwwspringsted.com Table of Contents k Page INTRODUCTION 2 PARTICIPANTS 3 THE MECHANICS 4 Qualifications 4 Duration and Restrictions 4 Bonding and Levy Limits 5 Process 5 Review and Modification 5 HOW DOES TAX ABATEMENT COMPARE TO TAX INCREMENT? 6 1 D t i j i a j 1' 1 1 SPRINGSTED 4 f Tax Abatement in Minnesota Introduction In 1997, legislation authorizing the use of tax abatement in Minnesota was passed by the State legislature. Amendments to the statute have been approved in 1998, 1999 and 2000. The statutory language defining tax abatement is quite brief and is contained in MN Statutes 469.1812 to 469.1815. Section 469 refers to the capturing or deferral of property taxes due f as "tax abatement." Under Minnesota law, taxes due on real property subject to tax abatement must still be paid as due. If tax abatement is in place, the appropriate portion of the taxes can be captured and applied to .development purposes. Just.. what the appropriate portion is depends on which governmental entities hold public hearings and adopt abatement resolutions. A participating city, county, and school district would need to act separately on their own portion of the property's tax to capture them through abatement. Unlike its cousin tax increment, tax abatement can be used to capture taxes on land and existing buildings as well as new improvements. The captured taxes must be used to offset the costs agreed to under an abatement agreement. The .closest Minnesota tax abatement gets to true abatement is a 1999 provision that allows for deferral of property taxes without penalty or interest. While this mimics a real abatement, ultimately the taxes are payable. f k 5 r s i~ SPRINGSTED Page 2 Tax Abatement in Minnesota Abatement Participants City Landowner/Developer • Elected Officials Landowner or Developer • .Advisory Commissions Attorney • City Staff • Fiscal Consultant: Springsted Incorporated • Bond Counsel i I ~ Other Possible Partici an p is Abatement Parcel/Area Project • County Federal Government • School District State Government • Metropolitan Council, etc. • Other Municipalities Bordering Project Area r1 SPRINGSTED Page 3 Tax Abatement in .Minnesota The Mechanics Qualifications Any political subdivision,- including statutory cities, home rule charter cities, towns, counties, and school districts are authorized to abate property taxes on selected parcels if: • The benefits gained equal or exceed the cost to the political subdivision, and • The abatement is in the public interest because it does one of the following: - increases or preserves the tax base, - provides employment opportunities, - provides or helps acquire or construct public facilities, - helps. redevelop or renew blighted areas, - helps provide access to services, or finances or provides for public infrastructure Duration and Restrictions Cities, counties, and school districts may grant an abatement for no longer than 10 years (8 year maximum if no initial duration is specified), or for no longer than 15 years if two or fewer jurisdictions participate. No back-to-back abatements. 8 years must pass before a new abatement can be applied. In any given year, the .total amount of property taxes abated by a political subdivision for all parcels may not exceed the reater of (1) 5% of the subdivision's current levy, or (2) $100,000. The State will not reimburse school districts for lost taxes resulting from abatement Taxes may be abated on the entire net tax capacity of a parcel including land or areas subject to the areawide fiscal disparities tax. Property in a tax increment financing district is not eligible for abatement. SPRINGSTED Page 4 Tax Abatement in Minnesota Bonding and Levy Limits. General Obligation bonds supported by tax abatements may be issued without a referendum, and such debt does not count against the debt limit of the subdivision. Bond proceeds-can be used to pay for public improvements, acquire and convey land or other property, reimburse property owner for cost of improvements, or pay costs of issuance of the bonds. Tax abatements are not subject to levy limitations. Process A political subdivision may grant an abatement only after a public hearing has been held. Notice of the hearing must be published in a newspaper of general circulation not less than 10 days nor more than 30 days prior to the hearing. The notice must identify the property, for which abatement is under consideration .and specify the total estimated amount of property taxes to be abated. The governing body must adopt a resolution specifying the terms of the abatement. The resolution must also contain a statement as to the nature and extent of the public benefits that are expected to be received. Review and Modification The abatement resolution can provide that no review and modification is permitted if resolution is silent, abatement may be reviewed and modified every second year after it has been approved. F: SPRINGSTED Page 5 Tax Abatement in Minnesota How does Tax Abatement compare to Tax Increment? The following do not apply to tax abatement but are applicable to tax increment: • "But For" test • LGA/HACA -local contribution • Fiscal disparities deduction Abatement captures all or portion of taxes, a hearing and abatement resolution required, and maximum duration is 10 years, or 15 years if two or fewer jurisdictions participate. Tax increment taxes captured do not include land and existing building value, a hearing and tax increment plan are required, and maximum duration varies. a 4 z 3' d SPRINGSTED Page 6 T Memorandum To: Economic Development Commission CC: Robert Erickson, City Administrator Arlyn trussing, Community & Economic Development Director From: Ann Flad, Economic Development Coordinatort' Date: 02/23/01 Re: High Tech Subcommittee Update EDC Commissioners Dick Miller and Bob Brandy were appointed to a High Tech Subcommittee at the January 27, 2001 EDC meeting in order to explore the following Strategic Plan items: ¦ "Research and identify fiber-optics and other emerging technologies," as identified in the 2000- 2001 Strategic Plan for Economic Development ¦ "Encourage additional office park/business campus development to achieve desired business mix," as identifitied in the 2000-2001 Strategic Plan for Economic Development. • "Attract and retain employers that will utilize the skills of residents," as identified in the 2000-2001 Strategic Pian for Economic Development. Bob Vogel, Chair of the Economic Development Commission, and Greg Statman, Chair of the Telecommunications Commission, met with staff on February 2001 to determine the str~,~cture; purpose and direction of the High Tech Subcommittee and refer issues back to the subcommittee for their research. It was concluded that David MacKinzie, who has worked with the Telecommunications Commission in the past, should assist in determining the strategy and steps to be taken. Staff met with Mr. Mackinzie and discussed Lakeville's existing technology infrastructure, infrastructure needed to recruit and retain businesses, and the ability of technology companies that could potentially provide the infrastructure and service. Mr. Mackinzie will suggest strategies and steps for accomplishing the above goals at a High Tech Subcommittee meeting in the near future. Wednesday, February 21, 20 G:1AFIad\ECONDEV~EDC12001mtgs12February 27\High Tech Subcommittee Updated Mf'mOr~1~~~,~.m Items. _ Ta Economic Development Commission CC: Robert Erickson, City Administrator Arlyn trussing, Community & Economic Developmen erector From: Ann Flad, Economic Development Coordinat Date: 02/22/01 Re: Strategic Plan Review and Update Attached you will find the 2000 Strategic Work Plan. This Work Plan is based on the 2000- 2001 Strategic Plan for Economic Development. As you will note, a number of items on the work plan are underway, including the study of incentives, the study of labor force, the exploration of fiber-optics and the ability to use them to recruit office businesses. Additionally, a number of items on the work plan have not been addressed yet. Staff requests the Commission's advisement on the priority items to address in 2001. \\Ich_server\COMMDEVE1AFIad\ECONDEV\EDC12001mtgs\2February 271Strategic Plan Review memo.d~ 2000 STRATEGIC WORK PLAN DEVELOP AND IMPLEMENT VISION FOR LAKEVILLE'S RETAIL AND SERVICE SECTORS Estimated Q.1 Q.2 Q.3 Q.4 Action~t~ms Staff Time 2000 2000 2000 2000 2001 Status Includeyuestions. in future community surveys to identif riorit needs for additional retail oods and services and will, ingress to purchase locally _-Y_A_ __`Y_------- • Identify in fall 2000 issues that need additional information from residents 10 j ~ X - Review draft survey questions for 2001 survey i 10 ~ ' i i X . Support the implementation of the Town Square plan for uses that capture commercial, services, and entertainment dollars from both the local and sub-regional o ulations. Health services ualit rocer and restaurants are hi h riorit uses to attract • Define priority uses and potential sites 25 X • Identify landowners and developers 40 ~ i X ~ X ~ Support the incorporation of the Heritage Commons architectural ~ ONGOING ~ • ONGOING ~ ' guidelines into other developments in the Town Square area _ Explore if and how to inte rate with other communities so that Lakeville becomes both a metro communit and a re Tonal center ~ Support users that would be a regional draw ONGOING ONGOING _ e _ Support and research methods to attract purchasing power from 40 ~ ~ X neighboring communities ~ , ~ i • Develop a database and monitor building permit information for ~ 60 i I, i X 1 i communities south and west l i , Identify networking opportunities with neighboring communities ~ 40 ~ ~ ~ ~ ONGOING _ 1. 2000 Strategic Work Plan ' RV signifies That the action item will be reevaluated based on the results of the labor force survey June 2000 Update Page 1 ENSURE AN ADEQUATE SUPPLY AND DIVERSITY IN HOUSING OPPORTUNITIES _ _ _ _ - Estimated Q. 1 Q. 2 Q. 3 Q, 4 Action Items Staff Time 2000 2000 2000 2000 2001 Status _ Develop a proactive approach to expand the suppl of affordable housing • Review City Council and Metropolitan Council adopted agreement on i 10 i X ~ An Affordable Housing goals for Livable Communities Act (LCA) ~ i _ j _ I I ~ ;subcommittee was established • Review Dakota County Cluster LCA action plan 10 i X ~ i at the June 27`" EDC meeting. • Develop a request for proposal to hire a consultant 35 j X i Subcommittee is anticipated to • Work with consultant to: I 100 I X X ~ begin meeting at the end of - Research and define "affordable housing" and identify successes in similar ~ 'July or the beginning of August. communities j , - Identif i ~ j y potential locations for additional affordable housing units - Consider options to encourage affordable housing to be mixed with market i I i rate housing throughout the community, such as incorporation of affordable i ! units in specific projects ! i i - Identify sources of additional financial resources for affordable housing, j i such as CDBG, TIF, MHFA, etc. i i - Explore opportunities for securing employer participation in assisting current and future employees to live in City i i i • Encourage the development of medium and high density housing as i 35 i ~ j X X identified in the 2020 Land Use plan as an effective element in an ~j economic development strategy Partner with other city and county agencies to provide public information 40~ X I~ X about the linkages between housing-and economic development policies ~ i i _ , Develop a proactive approach to expand the supply of life-cycle housing • Review City Council and Metropolitan Council adopted agreement for ~ 10 j j ! i X Livable Communities Act (LCA) j ~ , j j ~ ~ ~ • Review Dakota County Cluster LCA action plan j 1p X i Identi o tions for ex andin su I of life-c cle housin ~ i._ • fY p P 9 PP Y Y g, including 50 ~ I i i X possible city subsidies i ~ Implement feasible options ~ Depends on i i i X i i activities ~ I i i _ ; _ _ _ _ _ _ 2000 Strategic Work Pfan ' RV signifies that the action item wilt be reevaluated based on the results of the labor force survey June 2000 Update Page 2 MAINTAIN LONG-TERM VITALITY OF THE HISTORIC DOWNTOWN Estimated Q.1 Q.2 Q.3 Q.4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Explore how the new_arts center can_become a key communes resource • Review plans for major areas of the site _ ~ 10 X Define programming responsibilities ~ i X I ~ Reviewed status of the Arts • 20 ~ ~ Center at the February 22nd • Define target uses I 40 X f _ ! ;and June 2Th EDC meetings. Support the Downtown Lakeville Business Association (DLBA) in identifying a future market niche for the. historic downtown and methods to link it with Heritage Commons • Review, adopt, and utilize DLBA Design Guidelines I 20 _ _ ONGOING f Downtown Lakeville Parking • nsure the incorporation of the Downtown Lakeville Parking Study ~ 15 j X ' X recommendations in the Zoning Ordinance update i I 'Study adopted by City Council • Work with the Dakota County Community Development Agency to I 30 i - - . in May. Striping of Holyoke X j Avenue completed in June. develop and implement Storefront Improvement Program with Community Development Block Grant Funding i ~ ~ Recommendations for Zoning j Ordinance incorporated and do ~ ~ be considered by the City j _ _ . _Council in July. 2000 Strategic Work Plan ' Rv signifies that the action item will be reevaluated based on the results of the labor force survey June 2000 Update Page 3 _ DEVELOP STRATEGIES TO ATTRACT AND RETAIN EMPLOYERS THAT WILL UTILIZE THE SKILLS OF RESIDENTS Estimated Q.1 Q.2 Q.3 Q.4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Define mix of commercial/industrial development desired to provide job mix • Implement strategies identified in goal 3, action item "Develop strategles for addttlonal office park/buslness campus development" ENCOURAGE ADDITIONAL OFFICE PARK/BUSINESS CAMPUS AND HOME-BASED BUSINESS _ _ SECTOR DEVELOPMENT TO ACHIEVE DESIRED BUSINESS MIX _ _ .Estimated Q. 1 Q. 2 Q. 3 Q. 4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Develo strafe. es for additional office arklbusiness cam us develo ment • Identify target markets & developers 25 X • Identify potential sites - i I~ 20 , ~ X _ _ I - ~ I • Discuss target markets with property owners I 30 ~ ~ i Research incentives and potential partnerships with developers ~ 40 j X X i • Develop a marketing plan G 40 X X Identify and implement opportunities to provide assistance to home businesses to ensure ioncj term Growth . • Work wtth Chamber to tdentlfy home based businesses 10 _ ~ i _ i X • Identify needs of home based businesses throw h surve or meetin ~ 20 ~ 1 I i X g Y 9 • Collaborate with the Chamber where possible to serve needs of home j Depends on , i ~ X based businesses activities _ ~ ~ I 2000 Strategic Work Plan ' RV signifies that the action item wi11 be reevaluated based on the results of the labor force survey June 2000 Update Page 4 _ IDENTIFY RESOURCES TO MEET EMPLOYERS' RECRUITMENT AND RETENTION NEEDS _ _ _ . Estimated Q.1 Q.2 Q.3 Q.4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Surv~em~loyers to assess employer needs rega~ rdinc~recruitment, retention, trainin ,transportation housin and child care • Identify potential partners to assist in the survey ; 20 ~ X ; i I I EDC recommended that the City i Develop and implement survey instruments and techniques i 160 ~ X X ! X ~ _ ~ Council consider contract with. • ~ ~ ~ Anderson-Niebuhr & Associates • Review results of surveys and reevaluate action items 30 ~ i ; - m X X , at July 5 meeting. Initiate programs to assist employers with recruitment • Market the skills. of current Lakeville residents to local businesses ; Depends on ~ RV" i activities ~ ~ • Identify and develop a marketin strate for the unta I 9 9Y pped markets of 80 RV ~ i part-time workers, seniors, and residents in neighboring communities _ _ • Develop a workforce resource guide using community networks to 50 ~ ~ ~ identify and recruit workers RV ~ ! Identify existing resources for local job web sites 25 - , • Develop with the Chamber a policy, process, and procedures to ~ RV ~ 10 ~ ~ X , provide all Lakeville businesses with access to website I ~ ~ i Market website to employers and potential employees throe h ~ ~ ~ , - ~ mediums such as Channel 16, Messages page, Airlake PargNews, ~ 20 ~ X i and the Workforce Center _ _ _t Assist in linkin businesses to trainin o ortunities and education o ortunities • Clarify the role of the City in expanding training opportunities 30 ~ RV , Support customized training programs (i.e, computer training, trade skills) 40 ~ i • and identify resources for additional training opportunities ~ ; RV roker school-to-work initiatives between businesses and the local I Depends on j { i RV ` ~ ~ - { l school districts ~ activities i i ! ~ 2000 Strategic Work Plan ' RV signifies that the action item will be reevaluated based on the results of the labor force survey June 2000 Update Page 5 Increase access for workers to Lakeville em to meet o ortunities throu h trans ortation initiatives • Identify what temporary agencies are doing to meet transit needs i 10 i X !Presented at February 22" EDC I ~ I i , _ ; _ ~ ;meeting. Support creative solutions to meet transit needs of current and future i 30 r ONGOING AS workers RV E • Explore options for expanded transit services (i.e. ride share, reverse ~ 40 ~ _ OPPORTUNITIES ARIS commute) ~ , ~ Implement feasible options - ! - Depends on.. RV _ activities Increase ability of workers to Ilve in Lakeville by developing a proactive_approach to expand the suppl oy f affordable _housing_ See action items identified in Ensure Adequate Supply of Affordable and Life-Cycle Housing strategy - - - - Increase access for workers to Lakeville em to meet o ortunities throw h child care services • Identify what temporary agencies are doing 10 X ! ~ Presented at February 22" EDC Explore options for additional child care _ _ I _ _ !meeting. . ! 40 ! + RV • Implement feasible options Depends on RV ' y ~ j I 1~ _ activities - l _ _ I I _ _ _ i 2000 Strategic Work Plan ' RV signifies that the action item wilt be reevaluated based on ttie resells of the labor force survey June 2000 Update Page 6 IMPLEMENT STRATEGIES TO ENSURE LAKEVILLE'S INFRASTRUCTURE IS ADEQUATE TO MEET CURRENT AND FUTURE BUSINESS NEEDS . _ Estimated Q.1 Q.2 Q.3 Q.4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Collaborate with others in an effort to secure additional financial resources from the state legislature and county highway department for timing and sharing costs of major transportation infrastructure investments • Compile list of future projects and desired timing in order to lobby I 10 X i appropriate agencies ~ ; ; ~ I • Identify potential partners for transportation investments i 10 X ' , • Develop marketing effort to encourage public support for transportation 40 ~ I l X I initiatives (complete in conjunction with marketing/communication plan} I _ I 1 ~ ~ _ . , Promote airport for corporate office use • Invite Airlake Fixed-Base Operator to present to EDC g ~ , ` X i ~ , Invite Metropolitan Airports Commission's manager of Airlake Airport to 5 ' • speak with EDC ~ X , l _ ~ I Discuss with Metropolitan Airports Commission. methods to develop 12 ~ X l~ Airlake into an airport that would meet the needs of corporate users _ , Promote a technolog center for the Lakeville business communit • Survey businesses to identify potential users and needs Part of survey ~ X I • Research other technology centers in Minnesota and Wisconsin { 40 I ~ i RV • Research feasibility of incorporating technology center into City Hall I 40 ~ I i RV ~ i i ~ expansion or Dakota County Heritage Library i i i I • Identify potential public and private partnerships that could be utilized to ~ 100 ~ I ' provide financial and resource support I ~ II ~ RV i l.. ' _ - Research and identify fiber-optics and other emerpinq technologies • Survey businesses for current and future technology needs .Part of survey ~ X • Identify current fiber-optic capacity 15 I ~ RV ' ~ ~ ' • Research feasibility & interest in cooperative stand-by power for Airlake i _ 25 ~ ~ _ RV ~ I { ~ • Assess interest in district heating and cooling as a cost-savin s I 9 I 20 { I _ _ { .RV _ l _ 1 2000 Strategic Work Plan ' RV signifies that the action item will be reevaluated based on the results of the labor force survey June 2000 Update Page 7 DEVELOP AND MAINTAIN POLICIES AND PROGRAMS THAT IMPROVE LAKEVILLE'S CAPACITY FOR ECONOMIC DEVELOPMENT Estimated Q. 1 Q. 2 Q, 3 Q. 4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Ensure that zonin district designations can serve different retail and_ office markets - - • - Review Zoning Ordinance district provisions for uses ~ 20 ~ X X • Provide input to Planning Commission on Zoning Ordinance revisions 10 X ' - ~ ;Presented to the EDC at the • Consideration of implementation of new urbanism conce is into Zonin i 40 ~ X ' - ~ April 18"' EDC meeting. Zoning Ordinance P g ~ X ~ Ordinance to be considered at _ ~ I.. ! _ 'July City Council Meeting Encourage retention of lar a tracts of land for future development • Identify uses and locations 4 10 i X • Develop City policies to discourage premature subdivision 20 ~ ~ - , X , Com lete annual review and u date of the Communit Marketin Plan See action items identified in Develop effective communication strategies consistent with the City of Lakeville Comprehensive Communications Plan _ Review tools available for business incentives for economic. de__v_ elopment and recommend strate ies to the Cit Council Review of current Tax Increment Financin TIF • 9 ( ) Policy ~ 30 j X • Review changes needed to comply with new legislation ~ ! ' 25 ~ i_. Update research of other economic development agencies' business ~ 40 J ~ X • incentives strategies ~ i X X • Research potential strategies (both financial and other) 40 ~ X X • Formation of subcommittee to review research and potential strategies i 5p (3 to 5 meetings with 10 hours per meeting) ~ ~ ~ ~ X X ~ X i ' i ! 2000 Strategic Work Plan June 2000 Update ' RV signifies that the action item will be reevaluated based on the results of the labor force survey Page 8 - DEVELOP AND MONITOR POLICIES THAT PROMOTE QUALITY GROWTH _ _ Estimated Q.1 Q.2 Q.3 Q.4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Develo olicies and oversee the incor oration and im lementation of the Corridor and Gatewa Desi n Stud • Review by the EDC of the incorporation of the Design Guidelines of the 10 X X Corridor and Gateway Design Study into the zoning ordinance -ensure I ; i Modification of industrial/ consistency with principles. ~ 'commercial park dedication • ;fees under consideration by P sDetting ma nten nice pollc es,ocost esptimates, den ficat on of fPndiny i 125 ! X I X X X ~ X joint EDC/Park & Recreation sources, and the development of educational materials, g ' subcommittee. Portion of ;increase may be designated for _ ' ~ corridor improvements. Review, and enhance if necessary, performance standards for future industrial and commercial develo merit work with the planning commission) • Gather input from business owners and users ~ 15 ' ~ X • Review other cities' standards ~ - ~ , _ ~ - • Review Lakeville's standards to identify whether they are adequate for I 10 ~ ~ ~ X the next 5 or more years + ~ ~ X • Develop performance standards ~ t30 _ i I X Continue to update the EDC on the Comprehensive Plan Process and rovide o ortunities for monitorin of the Ian 2000 Strategic Work Plan June 2000 Update ` RV signifies that the action item will be reevaluated based on the results of the labor force survey Paye 9 - _ ENHANCE AND MAINTAIN, COMMUNICATION EFFORTS WITH STAKEHOLDERS _ _ Estimated Q.1 Q.2 Q.3 Q.4 Action Items Staff Time 2000 2000 2000 2000 2001 Status Developeffective communication strategies consistent with the Cit of Lakeville Com rehensive Communication Plan • At an EDC meeting focus on analyzing economic development 40 communication needs i ~ X X j j ;Discussion regarding economic - Identify and categorize stakeholders (i.e. citizens, businesses, etc.) i ~ ! 'development marketing at the - Identify messages for stakeholder groups i i ~ March 21St EDC meeting. - Develop methods of identifying attitudes and perceptions of various I I ' ! ;Recommended that EDC begin stakeholder groups j ~ ;work on updating marketing - Strategize methods of communication (i.e. mailings, email, website, etc.) I ~ ;plan once other subcommittees - Identify potential groups or organizations that can be a source of promoting ~ ~ !have concluded. Opportunity Lakeville i j ~ i !for collaboration with Airlake • Develop proposal to hire one or more marketing consultants to develop a ~ 40 - ~ - - ~ ' De X i X velopment on Alrlake portion or all of an economic development communications plan (i.e. ~ , ~ ~ i Industrial Park marketing. EDC marketing plan, design of marketing materials, etc.) I ! ~ i ;proposed to work with • Work with consultant(s) to develop communication plan components 75 ~ ~ ~ ~ ~ 'consultant on identifying targets . ; Continue implementation of communication strategies (3 hours per week) ; 40 ' ~ X ' X ~ for retail, medical, and service _ i ! ~ X X _ ;businesses: Desi n annual economic develo ment re ort to citizens • Review previous annual report ~ $ _ • Discuss timing, format, structure of 2000 annual report, and potential ~ 7 i ~ X medium changes such as page on web site or cable show ~ i i X • Develop 2000 annual report ~ 80 ~ ; _ i - _ ~ X _ Create program to recognize business people as ambassadors in the community through personal and where a • Publlc recognition-recognltlon of Council mtg., neighborhood mtg., or ~ 15 ppro riate, public, recognition banquet ONGOING AS I ` • Personal recognition-call from Mayor, personal notes, or staff contact I .1.0 OPPORTUNITIES ARISE ! , 1 ONGOING 1 2000 Strategic Work Plan June 2000 Update ' RV signifies that the action item will be reevaluated based on tha results of the labor force survey Page 10 Build stronc,~er linkages with other cit~adviso groups, C~ Council, and staff Secure City Council endorsement of Strategic Plan and work plan I 5 • ~ ~ i Host workshop of advisory groups to define quality of life, discuss 30 i X } ~ 'City Council adopted Strategic common values, share EDC strategic plan, and identify opportunities for , X ! 'Plan in February. Workshop on collaboration ~ i ~ ! ;hold until fall due to Zoning • Present process issues as they arise to other commissions and ~ ~ ' - - ~ ~ . ;Ordinance update. committees in a one-on-one environment I 20 ONGOING • Include Planning Commission meeting minutes in the EDC packet On oin - 9 9 _ ONGOING ' _ _ IMPLEMENT STRATEGIES TO MAINTAIN QUALITY CUSTOMER SERVICE Estimated Q, 1 Q, 2 Q. 3 Q. 4 _ Action Items Staff Time 2000 2000 2000 2000 2001 Status Maintain efficient review process of commercial and industrial development projects • Continue to review sketch plans and hold Wednesday Staff Development ~ On oin Meetings i g 9 i ONGOING • Annually update and publish Commercial and Industrial Development ' 10 Guide . ~ , X p g g 25 _ _ • Development Rev ew Pro~essho Re ardin the CommerctaUlndustrial ~ ~ I ' • Consider hiring liaison to work with business community on development i 40 ~ i ~ r_ projects ~ i i { _ ~ X ~ i ~ Hold annual c stomer service trainin for Cit staff • Coordinate general customer service training with Human Resources 20 Director X ~ j ~ 'Customer Service Training on • Develop discussion sessions with business owners and developers for 30 ~ ! -X ~ ; - ~ ~ hold due to update of Zoning specific departments ~ i I Ordinance and Map. • Recognize superior customer service I - ' ~ i i i 10 ~ I I ONGOING -_i ~ _ i_ 2000 Strategic Work Plan June 2000 Update ' RV signifies that the action item will be reevaluated based on the results of the labor force survey Page 11 Item MEMORANDUM TO: MAYOR, CITY COUNCIL, CITY ADMINISTRATOR FROM: GERALD S. MICHAUD, PARKS AND RECREATION DIRECTOR ARLYN GRUBBING, COMMUNITY AND ECONOMIC DEVELOPMENT DIRECTOR DATE: FEBRUARY 22, 2001 SUBJECT: UPDATE ON JOINT SUBCOMMITTEE OF EDC AND PARK AND RECREATION ADVISORY COMMITt'EE CONCERNING COMMERCIAL~INDUSTRIAL PARK DEDICATION FEES The joint subcommittee met at 5:30 PM Thursday, February 22"d to discuss issues associated with the commercial/industrial park dedication fees as it relates to Airlake Industrial Park park dedication fee requirements. Present were subcommittee members Bob Vogel of the EDC and .Jeff Larson of the Parks Commission. Gary Tushie of the EDC participated via telephone. Staff present included Steve Michaud, Parks and Recreation Director, Arlyn trussing, Community & Economic Development Director, and .Ann Flad, Economic Development Coordinator. The meeting began with a phone conference call with City Attorney Roger Knutson. The purpose of Roger's call was to inform subcommittee members of the legal implications and options available when considering the Airlake Industrial Park park dedication prepayment proposal .from Airlake, Inc. Roger explained .that the City is not obligated to receive prepayment as proposed. Roger further explained that the City is well within its rights to authorize prepayment. Previously, Airlake, Inc. had proposed to prepay their park dedication requirements on all existing unplatted property but contested certain land values that were established by the Dakota County Assessor's office. Airlake, Inc. wanted to pay the park dedication fee based on a lower value than Dakota County had the property assessed. The most recent correspondence from Airlake Development's attorney proposes to pay the park dedication fees at the rate outlined in the ordinance. The Parks and Recreation Advisory Committee did not favor receiving the lesser amount, but did support the City Council accepting payment based on the old formula of 5% of fair market value as established. by Dakota County Assessor's office. Vogel moved and Larson seconded to recommend to the Parks and Recreation Committee and the EDC that the current offer by Airlake Development to pre-pay park dedication fees be accepted as it satisfies the joint goals of the committees. A// in favor. Motion carried. 7 Items. ~ Memorancfium To: Economic Development Commission CC: Robert Erickson, City Administrator Arlyn trussing, Community & Economic Development Der-ector y~~. From: Ann Flad, Economic Development Coordinator Date: 02/22/01 Re: Development Project Feedback Survey Annual Report for 2000 The 1995 Strategic Plan for Economic Development called fora "survey ofi business after the development process for feedback" (see attached page from the 1995 Strategic Plan for Economic Development.) The plan also. called for an annual report on survey results during the first quarter of each year. A report for the year 2000 is attached for your reference. Fifty-two surveys representing 23 projects were sent to developers and to business owners whose project received a Certificate of Occupancy or a Temporary Certificate of Occupancy during 2000. Four measures of satisfaction are explored in the survey: Whether questions are answered to the respondent's satisfaction, whether the respondent felt informed and up-to-date on City procedures, whether staff responded in a reasonable amount of time, and respondents' rating of -the overall service received during the development process. Additionally, respondents are asked to provide. additional comments in order for the City of Lakeville to continually address the needs of businesses during the development process. A copy of the survey is attached for your .reference. All four measures show an increase in satisfaction. Satisfaction with measure one, "Questions answered to satisfaction" increased 6%, satisfaction with measure two, "kept up-to-date" increased 23%, satisfaction with measure three, "reasonable response time" increased 11 and satisfaction with measure four, "overall degree of service" increased 11 Additional comments are noted in the report and give further indication of the improvements that businesses and developers are requesting of the City's CommerciaUlndustrial Development Process. Staff has updated the information that is sent with the survey to accurately reflect the new statistics. Staff will also review this report in a future Community & Economic Development Staff meeting and will forward a copy to Building Inspections as well. Wednesday, February 21, 20 G:1AFIad1ECONDEV\EDC\2001mtgs12February 27\Feedback survey memo.d TEAN13, Communications & Interactions Team Members: Matasosky, Vogel .~ctiott Plan A,: Research and ident~ ci~,,~fee structure with other cities that are undergoing commercial and industrial developmen . ? Staff has determined types of fees for C & I development projec Bering consultant will contacted to conduct a survey of other city's fees. Action plan completed by 2nd quarter, 1996.. Action Plan B, Survey businesses after the development process for feedback. ? Year-end report provided to City Council in December, 1995. Refer to Attachment #3. This is an on-going project and staff is preparing to send out surveys for projects recently completed, 1st Quarter, 1996. ction Plan C: Develop a human resources development review for continuous quality rm vement. ?On- 'ng review process to improve customer service. Action Plan D: Maintain enhance structure that increases commacnications between business community and city. ®Throughout the outdoor storage laiid/sea container and semi-tractor-trailer ordinance change, staff has continuous ontacted the business community via personalized letters. Articles in the Airlake k Newsletter explained proposed and adopted changes to the ordinance and affects on finesses. Staff is following up with in- person visits to each business directly affected by the finance. ?Members of the City Colulcil, EDC aiid city staff were prese t the December Chamber of Commerce Luncheon .where the Commluuty Marketing was presented and enlisted support of the business corrununity in carrying out the Mark Plan. 4 ECONOMIC DEVELOPMENT COMMISSION STRATEGIC WORK PLAN 3 - COMMUIVICATTONS: & ESTIlI4ATEIt COST & ' 4TH 15T 2ND 3RD 4TH LST ' 2ND 3RD 4T'H '<STAT'US CTTONS HOURS QTR `9~' QTR QTR QTR `95, QTR `95 QTii `96 QTR'9G QTR QTR `96 A. Research and identify competitive SEH, Springsted: S 10,000 - ~~ith other cities that are undergoing wmmercial 0 (Trunk Funds); CED and industrial development (west, southwest, staff: 1 northwest, northeast metro.) RISK/REWARD: Low/fii h. Coordinate with 4A. KEY PROGRAMS A. Determine and list types of fees that are required CED staff X Completed in commercial and industrial develo ment ro'ects. B. Conduct a survey of fees chazged b}• current SEH, $10,000 - 515,000 Reschedule for 1997 metro Titan develo ment subre 'ons. im lementation C. Compare survey findings t~ith Lake~ille's SEH, Springsted Reschedule for 1997 comprehensive plans and current development fee implementation structure. D. Upon sun•ey completion, report results to SEH, CED staff Reschedule for 1997 commission. entation E. Based upon discussion regarding report, make EDC, CED staff Reschedu 7 im lementation TEAM 3 - COi~1HUNiCATTONS & j INTERACTIONS ! _ B. Surve}• bttsinesses after the development process CED staff; Decision Resources, (i.e., site re.ie~y, public hearings, building permits, Ltd.. $2,500. etc.) has taken place and obtain feedback on whether the process needs changes. RISK/REWARD: Medium/High. Coordinate with Team SA and 4C. KEY PROGRAMS ~ A. Generate a questionnaire that asks for feedback CED staff X Completed re rdin the develo ment rocess. B. Provide the EDC with a draft stuvey Cor EDC, CED staff X Completed discussion. C. Determine ~yho and how to implement the CED staff; EDC X Completed survey. How should responses, positive and ne atiye. be handled. D. Consultant discuss survey results with EDC. CED staff Oo-going by City staff 6 ECONOMIC DEVELOPMENT COMMISSION STRATEGIC WORK PLAN ACTION PLAN 3B CONTI1YItEb ESTIMATED CO5T'& 3T13 1ST :2ND 3lib 3TI3 IST 2ND '3RII sTH ' STdTLIS HOURS QTIt `94 QTR QTR'?5: QTR `95 QTR '95 QTR `96 QTR'96 QTR.`96 QTR `95 E. Quantify survey responses yearly and provide a CED Staff X Completed for 1995 re rt card to EDC. City Council. staff. F. Review current ordinances and policies to EDC, CED staff X On-going minimize hoo sand hurdles. TEAM 3 - ~ A INTERACTIONS C. Develop a h resources development review City Administrator for continuous uality ~ ement. KEY PROGRAMS ~ A. Research quality improvement & City Administrator. X X Completed service ro ams for ublic-service staff. B. Implementation of quality improvement and dministrator X Completed customer service ro rams for city staff. C. Develop recommendations for cotrunercial and City Administr X On-going, as required industrial develo ment review rocess. TEAM 3 - COI~iMIJ1~f1CATION5 & INTERACTIONS D. Maintain and enhance the structure that CED staff, 196 hours; Mike increases communications between the business Sobota & Bob Erickson. =10 community and the city. RISK/REWARD: hours Low/Hi h. Coordinate with 3C, SA, SD. KEY PROGRAIViS \ ~ ~ A. Identify alternative structures for establishing a EDC. CED staff X On-going business roundtable format. B. Maintain a dedicated business to city phone line. CED staff X On-going Track inquiries and provide information to City Council, staff. EDC. C. Provide copies of the approved Strategic Work CED staff X On-going Plan to businesses and rovide u tes uarterly. D. Continue publishing Airlake Pa;k News. CED staff, Chamber of X On-going Continue to recognize. importance of manufacturing Commerce to local economy with fall ban uet. E. Host activities that focus on business - CED staff, Chamber of On-going worksho s, human resources network. etc. Commerce 7 Development Project Feedback Survey BUSINESS NAME: «Company» DATE: CONTACT PERSON: «Salutation» «First Name» «Last Name» PHONE: PROJECT NAME: «Project_Name» DESCRIPTION OF PROJECT: «Project_Description» 1. Were questions regarding the development process answered to your satisfaction (understanding)? Yes No If no, please explain: 2. Were you or the person in charge of the development project kept up-to-date with City procedures (i.e., staff development review, public hearing before Planning Commission, City Council review, etc.)? Excellent Good Satisfactorily Poorly Not at all Additional Comments: 3. If you had questions or concerns regarding your development project, did you feel City staff responded within a reasonable time frame? Yes No If no, please explain: 4. Perhaps your contact with the City regarding your development project was with one or more staff. Did you feel that the overall degree of service was: Excellent Good Satisfactorily Poor Additional Comments: 5. The City would like to know how the development process could be handled better. Your suggestions are appreciated and will be considered in order to increase responsiveness to business needs. 6. Would you like us to contact you to discuss your concerns? Yes No Please mail your response using the enclosed stamped, addressed envelope. Thank you. «Code»/00 nevelopmen~ ~rojec~ feedback 5urve~ 2000 Annual. ~epor~ The 1.995 Strategic Plan for Economic Development called fora "survey of business after the development process for feedback" (see attached.) The plan also called for an annual report on survey results during the first quarter of each year. Fifty-two surveys representing 23 projects were sent to developers and to business owners whose project received a Certificate of Occupancy or a Temporary Certificate of Occupancy during 2000 (see attached list of projects surveyed.) Four measures of satisfaction are explored in the survey: Whether questions are answered to the respondent's satisfaction, whether the respondent felt informed and up-to-date on City procedures, whether staff responded in a reasonable amount of time, and respondents' rating of the overall service received during the development process. Additionally, respondents are asked to provide additional comments in order for the City of Lakeville to continually address the needs of businesses during the development process. In 2000, 52 surveys representing 23 projects were sent to developers and business owners.- The results of the surveys show an increase in satisfaction with the City of Lakeville's development process. Results are as follows: Question # 1: Questions answered to satisfaction One hundred percent (100%) of the respondents indicated that questions regarding the development process were answered to their satisfaction or understanding. Data from previous years indicated a 94% satisfaction rate. Satisfaction on this measure increased 6% from the previous year. Question #2: Kept up-to-date Ninety-seven percent (97%) of respondents felt that they or the person in charge of the project were kept up-to-date with City procedures (i.e., staff development review, public hearing before Planning Commission, City Council review, etc.) .Data from previous years indicated that 74% of respondents felt the person in charge of their project was kept up-to-date on City procedures. Satisfaction on this measure increased 23% from the previous year. Respondents also provided the following additional feedback: ¦ Excellent - Mike. Sobota and Frank Dempsey were as fair and cooperative as could be expected. -Crystal Lake Golf for Crystal Lake Club House ¦ We were kept informed satisfactorily - we would have to call to find out the results of meetings. -Min-Kota Building Systems for F & L Enterprises ¦ Good communication of City design codes, submittal timelines and responses. Responses to questions were timely and easily understood. - U.S. Bank Corporate Properties for U.S. Bank ¦ City staff and Administration were very proactive in making the project start quickly and helped clear the path. -Jacobson Engineers-Surveyors MainStreet Auto Question #3: Reasonable response time One hundred percent (100%) of respondents indicated-that City staff responded within a reasonable time frame to their questions or concerns. Data from previous years indicated that 89% of respondents felt staff responded within a reasonable amount of time. Satisfaction on this measure increased by 11 % from the previous year. Question #4: Overall degree of service Ninety-nine percent (99%) of respondents felt that the overall degree of service was good or excellent. Data from previous years. indicated that 88% of respondents felt. that the overall degree of service was good or excellent. Satisfaction on this measure increased by 11 % from. the previous year. Question #5: Additional comments Respondents provided the following additional comments in order to assist the City in enhancing the development process to be responsive to business needs: ¦ Thank you for allowing us to present the advantages and beauty of architectural pre-cast wall systems. - Appro Development for Crystal Lake Automotive ¦ Consent agenda for my plats. -Crystal Lake Golf for Crystal Lake Club House Wednesday, February 21, 2001 G:WFIad\Dev Surveys12000 Survey Report.doc ¦ I believe a detailed list of requirements with a preliminary meeting with staff to address any unusual concerns would be very helpful with getting projects started smoothly. -Min-Kota Building Systems for F & L Enterprises ¦ If the City could perhaps work more closely with the building inspection department in reviewing final construction documents perhaps any code issues would be notice on a more timely basis. We experienced a couple of incidents where code issues were identified AFTER work had been performed or completed, id: entry doors... - U.S. Bank Corporate Properties for U.S. .Bank ¦ For the most part, this was a relatively smooth project through development. Thanks. -Hay-Dobbs for Industrial & Environmental Concepts ¦ Working with Lakeville was a pleasant experience. We do work nationwide and quite often you do not get to speak with City staff. Mr. Abbott returned all of our calls and his staff was responsive to all issues. - Wilkus Architects for Perkins Restaurant ¦ The City helped to provide superior access to the site. Coordination with water service was the only. tricky aspect with the project, and understandably so, since the building was completed before water service was secure. - Appro Development for MainStreet Auto ¦ Plans need to be redlined so that we do not have last minute surprises. I understand the role of inspectors. In fact, the building is better and safer because of their commitment. But some calls by one inspector' were extreme and as a result credibility was undermined. -New Road Development for Perkins Restaurant 1 Note: This inspector is no longer employed with the City of Lakeville. Wednesday, February 21, 2001 G:1AFIad\Dev Surveys12000 Survey Report.doc Development Feedback Survey 2000 Projects Surveyed Project Name Appro Development E Crystal Lake Clu_b_House PC Pointers _m_ _ _ ; Wausau_Supply Partners Health Club- _W Nu shapes Construction Partners Health Club Ponce Station -City of All Saints School Kwik Trip Stores Lakeville Cleaners Advanced Wireless mmm~Nu Shapes Construction _._.M US Bank 1 New Horizon Daycare Allison Specialty Components F & L Enterprises - _ _ Northland Collision Carload Connection _ MainStreet Auto u e _ _ . ~ ~ _w._.M_._w Perms Groove Perkins Restaurant - ~,e Industrial & Environmental Wednesday, February 21, 2001 G:1AFIad\Dev Surveys12000 Survey Report.doc ~ 11 `1 ~ ~ i Date, 2001 ~ \ DRAFT «Salutation» « First Name» «Last Name» «Company» «Address» «City», «State» «Zip» Dear «Salutation» «Last Name» , Thank you for completing the City of Lakeville's Development Project Feedback Survey. We have recently reviewed fifty-two surveys. that were returned in 2000 and 2001, and feel it is important to share with you the generalized information which follows.. One hundred percent (100%) of those responding indicated that questions were answered to their satisfaction, while ninety-seven percent (97%) of the respondents indicated that the person in charge of the-project was kept up-to-date with City procedures. Additionally, one hundred percent (100%) of the respondents felt that City staff responded to questions or concerns in a reasonable amount of time. Overall, ninety-nine percent (99%) of those responding rated the City's degree of service as good or excellent. Although he nQSitive responses to the surveys indicate that the City. of :Lakeville continues to rnake_excellent progress taward~.*~aoal of pro~~i~?ic~n PxcPru~cnal customer service, we also.- reaiie-tlr~t-there ~s still "i~ion~ fur ire ~proverrent:-t~-thd~ ~rrr`~ard~ vve . ;ave asked City Management to address all of the specific concerns noted in the surveys,. as .well as to review and suggest additional ways of improving the Commercial/Industrial Development Review Process. Over the past month we have been in contact with those who indicated a .desire. for additional discussion about their concerns. If you did not originally indicate an interest in further discussion, but have some concerns or suggestions at this time, please feel free to call either of us at 952-985-4400. Thank you again for your suggestions and your continued investment in our community! Sincerely, Robert D. Johnson Bob Vogel Mayor, Lakeville City Council Chair, Lakeville Economic Development Commission ~'ity ~f L,a1~~ville 20195 Holyoke Avsnue ~ LaCceville, tL~N 55t~44 • (952) 985-44~I0 • Ft~X 985-4499 Berycled paper, soy ink .Item I~~o. Memorandum To: Economic Development Commission CC: Bob Erickson, City Administrator Arlyn Grossing, Community & Economic Development ctor From: Ann Flad, Economic Development Coordinator Date: 02/20/01 Re: Prospect/Inquiry Report Attached you will find aProspect/Inquiry Report for January-February 2001. This report provides information on prospects the Economic Development Department has responded to. The purpose of tracking this information is to .provide timely follow-up on leads and to determine trends in the types of inquiries made of Lakeville. Information from this report will be provided to the Economic Development Commission on a monthly basis. Information will also be forwarded to Airlake Development Inc. to inform them of the size of sites businesses are interested in. Information on the types of inquiries and the size of site needed may also be provided to other developers as interested, and will be incorporated into marketing materials as appropriate. In January-February 2001, the Economic Development Department has had twelve inquiries. The nature of these inquiries is as follows: Commercial/Retail - 5 Inquiries 3 for existing retail space under 1,500 sq. ft. to lease 2 for land zoned forcommercial/retail development Industrial - 7 Inquiries 4 for sites sized 5 acres and up 1 for a 1 acre site 2 for existing buildings to lease Inquiries T Need/size Nature Contact 'Location consderin Timeline I Existing Bldg Truck Paint ShopChip Anderson 121540 Hamburg Ave (LaFevre Bldg.) i 03/01/2001 I Existing Bldg Ag Technologies Internatio ,John Ahlberg Tim Haase of Ryt-Way's property I 04/01/2001 C Existing Bldg Hobby Shop Bridget Zahratka Heritage Commons, Lakeville Liquor, Southfork 12 Acres Excel Energy Client Paul Ammerman Airlake 4th, Airlake 5th, Pearson, Fischer, EE C 8-11 Acres Grocery Store Developmen Matt Friday, Grubb & Ellis !Heritage Commons, Cedar & 46, 135 & 46 I 8-10 Acres Manufacturing ~Amie Wetterlin -Metro East Refered to Stan Palmer for Airlake I ~5-10 Acres Distribution (Arnie Wetterlin -Metro East Refered to Stan Palmer for Airlake _ I I Acre Steel Fabricating 'Mark Dennis per Dakota Ele Airlake Fourth I 25-50 Acres iManufacturing Joe Dahl -Pfeffer Co. Aptus Building, Fischer, EE, Giles, U, AA Pearson, C !Existing. retail Nail and Tanning Salon ~ TimberCrest C Existing Retail Insurance Agency-State Fa jRobert Joswiak Heritage Commons C New Retail Tire StoreLandon Helm -Cushman Wa Hwy 50 & Dodd area ~ Page 1 Item. Z~~'~.,_.,_ l~~EIO?RANDUM T4: Economic Development Commission FROM: Arlin Grussing, Community and Economic Development Director DATE: February 22, 2001 RE: Airlake Airport Update/Implementation Strategy-Promote Airport for corporate office use Mr. Glenna has been working on a plan for his hanger that could possibly accommodate other industrial users located in Lakeville. The plans were submitted at a meeting an February 16, 2001 along with estimates for the building value. Staff is working on a cost/benefit analysis as requested by the EDC several months ago. It is unlikely that the study will be completed by the EDC meeting. The preliminary estimate for the entire project is X357,883. Mr. Jack Eberlein, Airlake Airport Manager, attended the meeting and has a copy of the plans and cost estimates. Mr. Eberlein will review the plans to see if MAC can add support to the proposed hanger. It was further discussed that the current FBO may change ownership and the change may result in a substantial new construction and upgrade of the facility. in 1999 and has 1,142 nployees a $250 clothing ~"I" 0~ Op010 1" 111, employees can use lake Did you know? The Minneapolis-St. Paul Metropolitan Statistical Area (MSA) is the 16th Colorado, and. a seaside condo largest in the United. States. The population grew by 16 percent between 1980 and 1990. Between 1990 and 1999 the growth rate was 13.1 percent, compared to 9.8 percent for the State of Minnesota. The annual growth rate for the metropolitan area is 1.45 percent, °d in Fridley, with 34 sites per $5 billion in 1999 and making it the eighth fastest growing region in the nation. )RTUNE honored Medtronic 13-County Metropolitan Area Po ulatiorr ncluding 32 blood tests. p 1990-1999 E list, but not headquartered in - 32; Whole Foods Market; 41; r,. _ - rican Ex ress 77~ Marriott Anoka . 298,9 _ _ P 48 243,641 22.7% Carver 67 023 47 915 39.9 /o . , Ch 302 30 521 38.6% . , i sa o . ~ . _ ~ _ _ ~1 1 1 Dakota 349,131 275,210 26.9% a Cities area ~ob seekers accord- Hennepin ~ 1,064,419 1, 3.1 / , f by Manpower Inc. According Isanti 30,887 25 921 9.2 .es. ~ Ramsey„ 486,254 485,760 0.1% _ :ion, wholesale and retail trade, Scott 82,994 57,846 43.5% (e non.-durable goods manufac- erburne 63,356 41,945 51.0% S~?.. ~ . Washington 202,606 145,860 38.9% 87 864 68, 710 27.9% trade, finance, insurance, real - Wright.,..,,, . „ _ , Pierce (WI) 36,052 32,765 10.0%° intend to cut back, and a mix _ - - ~ _ _ . . a-durable goods manufacturing.. St. Croix (WI) m60,273 50,251 19.9% Metropolitan pressed for Seattle Atlanta Are al 2 872 109 a Tot... m.. .w 2,538,776 13.1 ~ .w.. . , Source: U. S. Bureau of the Census. "Metropolitan Area Rankings by Population Size, "December 2000. (FMAM). Tom Brace plans to used to the term chief to identify the achieve this by getting input on all person charged with the administra- proposed amendments to the new lion and enforcement of the code, code from the MSFCA's Code the IFC refers to that person as the Committee, which is made up of code offici~~l. Where the UFC uses a representatives of both the MSFCA "B" in the margin to identify por- and FL?IANI, as well as state and lions of the code that are maintained local building officials. This com- by the building code development mittee is chaired by Bloomington committee, theylFC only identities Fire Marshal Bob James. At this those sections with a "[B]" at the point in time, the committee has beginning of the affected sections. completed the process of reviewing Similarly, the IBC identifies sections all of the current state amendments maintained by the fire code develop- to the 1997 UFC to see which ones ment committee with an "[F]" desig- need to be carried forward into the nation. new code. The next step is to review Code application. The IFC con- ~ newly submitted code change pro- rains requirements specifically appli- posals. cable to existing buildings. These • The State Building Codes and requirements can be found through- ~ • Standards Division (SBCSD) out the various chapters of the code intends to adopt the 2000 (e.g. Chapters 7, 8, 9 and 10). In the International Building Code (IBC) UFC, those requirements are essen- by July, 2001, with an effectivedate tially limited to Appendix I-A, of July, 2002. They want to delay the which we in Minnesota extensively effective date to allow sufficient time amended in order to provide what for training on the new code. Tom we felt to be a minimum acceptable by Robert Imholte, Code Development Brace's intent is to make every effort level of safety in existing buildings. and Training Coordinator to meet those same timeframes, so Sec. 102.2 of the IFC goes on to that the codes can be adopted con- state that the administrative, opera- currently in line with the cooperative tional and maintenance provisions of agreement signed between the State the code apply to both new and exist- Last August, State Fire 1Vlarshal Fire Marshal and Building Codes ing conditions and operations. Tom Brace announced that the State Divisions. Discussions have already Referenced standards. Chapter 45 Fire Marshal Division intends to taken place on providing joint train- of the IFC incorporates quite a num- adopt the 2000 edition of the ing on the IBC and IFC, possibly ber of other nationally recognized International Fire Code (IFC). This starting as early as spring, 2001. standards and publications (e.g, article is intended to serve as a brief So. where did this new code come ANSI, ASTM, UL, NFPA,. etc.), introduction to this newly created from? The IFC is the result of an either whole or in part, into the code. document and identify some of the ongoing effort to create a single For example, this chapter references differences between it and national family of codes (building, .over 80 NFPA standards and 14 UL Minnesota's current code, which fire, mechanical, etc.) for the coun- standards. The UFC has its own incorporates the 1997 edition of the try. It is published by the standards (many of them based on Uniform Fire Code. (UFC). International Code Council (ICC) other nationally recognized Stan- Before getting into that, however, and is intended to be a companion dards, such as NFPA) published iu it's important to review where things code to the IBC. The document is Volume II of the code. UFC are at in the adoption process. On based on provisions found in three of Appendix V-A references a lot of the November 6, 2000, a REQUEST the nation's model fire codes-the same standards that IFC Chapter 4~ FOR COMMENTS (RFC) was pub- Uniform Fire Code, the Building does, but they're provided in the lished in the State Register. The RFC Officials and Code Administrators appendix for use as a guide only. is intended to serve as notice to the International, Inc. (BOLA) National Also referenced throughout the IFC public of the Division's intent to Fire Prevention Code, and the are other codes from the ICC family adopt the new code. As the title indi- Southern Building Code Congress (e.g. International Building Code, Cates, it also serves to let affected International, Inc. (SBCCI) Standard International Mechanical Code, etc.) parties know of .the opportunity to Fire Prevention Code. Occupancy classifications. The submit written or oral comments or There are some subtle and. some IFC classifies a number of occupan- information relating to the proposed not so subtle differences between the Gies differently from what we're new rules. IFC and our current UFC. Here's a used to. These classifications are The RFC also provides notice that look at some of them. based on those found in the IBC. the Division intends to seek com- Format changes. The UFC is Some examples: menu and suggestions throughout organized into Articles. The IFC, The UFC basically breaks the drafting process from both the however, uses Chapters. The IFC has Group A Occupancies down by Minnesota State Fire Chiefs only seven (7) appendix chapters; occupant load and the pres- Association (MSFCA) and the Fire our current code has 29 (we've ence, or lack of, a stage. The Marshal's Association of Minnesota ado led 9 of them). While we're IFC, on the other hand, breaks p them down by use (e.g. A-1 JANUARY/FEBRUARY 2001 45 I lions to bring them more in line with requirements found in the current R ~ state code. ' ~ O ~ ® Exiting. Chapter 10 of the IFC N ' ~ contains 36 pages of exiting require ' ~ menu for both new and existing N ~ buildings. This compares to just UNLFORMS FOR three (3) pages in the UFC. This chapter, based on the requirements of the IBC, follows the three-part TODAY'S FfREFfGHTER means of egress concept found in our current State Building Code- . the exit access, the exit and the exit discharge. It introduces a concept • Dress Uniforms _ • Badges that will be new to many-common path of egress travel. This is some- • Flame Retardant Clothing • Insignia what similar to dead ends in concept, but applies to all occupied portions of a building. not just corridors and 2220 Lyndale Avenue S. 189 East 7th Place aisles. It's defined as that portion of Minneapolis, MN 55405 St. Paul, MN 55101 the exit access which occupants are 612-377-0011 651.224-7567 required to traverse before two sepa- l -800-328-9202 1-800-328-9201 rate and .distinct paths of travel to two exits are available. Standpipes. Where the UFC bases its standpipe requirements on the Occupancies are uses intended number of stories for the most. part, for the production and viewing the IFC uses two criteria: (1) the ~~nel? of the performing arts or height of the highest floor level of O motion pictures: the building above or below the low- Occupancies are uses intended est level of fire department vehicle for food and/or drink con- access and (2l building size, coupled ~ sumption; etc. j. The IFC breaks Group H With length of travel from the nearest Q~ ,Occupancies down into 5 drvi- point of fire department vehicle ~ ~ _ ~ lions instead of access. ~D 5U 1`~Af:~' ~ Day care facilities, both child Building services and systems. and adult, are classified as Chapter 6 of the IFC has more Eq~1'4 Group I Occupancies (an detailed requirements relating to exception still places some in such things as heating appliances, the Group E Occupancy classi- emergency/standby power and ele- Personal Protective Equipment fication). vator recall than the UFC does. • The Group R Occupancies are Hazardous materials. Instead of Quantitative Fit Testin broken down into four (4) g groins: occupancies serving exempt amounts, the IFC uses maxi- Gas Detection Monitors transients (R-1), occupancies mum allowable quantities. It does where the occupants are pri- not regulate such things as carcino- HazMat Suits marily permanent (R-2), one- gens, irritants, radioactives, and sen- and two-family dwellings (R- sitizers. When the maximum allovti~- Dra~er Tubes 3) and residential care/assisted able quantities are exceeded, the living facilities (R-4). tables in the IFC conveniently iden- Survivair SCBA Permits. There are two types of tify which occupancy group the permits in the IFC. Operational per- building falls into. In addition. there mils allow the applicant to conduct are significant increases in the an operation or business (e.g. amounts of hazardous materials s4.9.-1~011o Road amusement buildings, carnivals and allowed outdoors before controls Eaga~~.:~~N 55121 fairs, cutting and welding, etc.). must be put in place. (G511454-7233 Construction permits allow an appli- This was just a quick glimpse of 80G-844-703 cant to install or modify systems and what to expect with the new code, (651) 434-3217la.x equipment (e.g. automatic fire alarm which is still a work in progress. E . D . I . T . H , and extinguishing systems). Anyone with suggestions for amend- Fire alarm systems. The IFC has menu to the IFC is strongly encour- • EXIT extensive requirements for both new aged to contact any of the members DRILLS ~ and existing buildings. The MSFCA of the MSFCA Code Committee. • THE • • , Code Committee is in the process of • HOME writing up amendments to these. sec- 2001 LAKEVILLE CITY IMPROVEMENT PROJECTS Revised 02/23/01 Project Descri tion O l -01 Kenrick Realignment / 1851 Street (County Project 60-12) 01-02 Sewer/Water Extension (1851 to W of I- 35) O 1-03 Lee Lake Mana ement Plan 01-04 Hambur Infiltration O 1-OS Sealcoating District 1 01-06 North Creek LOMR (Town & Count ) ~ r - The Im erial USP~ ngs during a process that lasted more than a year. "It was pretty clear throughout they wanted to go to 84," When it's time to build a new post sa'Black h Br°ho,Haeptmanaged to office, towns often have little input, secure a compromise. The post office split its operations, setting up a routing facility on U.S. 84 and promising to estminster, \'er- for the needs and desires of the coin- leave the retail operation downtown. mont, is a pictur- munities it serves," postal official Debo- A lot of municipalities would be sat- esque communise- rah VUillhite said, "We cannot be all isfied with that sort of arrangement but of 3,200 people things to all people. Our role in the many local officials feel intimidated by with a post office .revitalization of the nation's cities and the whole process. "It's the federal gov- that serves as an anchor in a small his- towns must be limited to incidental eminent coming in and putting a plan toric village within the town. Although participant." on the table in front of afive-member quaint, the 80C-square-foot post office Communities believe otherwise. board of selectmen arid all the weight is bursting at the seams, and town lead- They don't ceant post offices contribut- that comes with that," says Karen ers .nd postal officials agree that a ing to sprawl by moving to the middle larger facilit}• is needed. of nowhere, ~~~adhams says. And they _ But just how much larger has want the postal service to recognize 1 become a point of contention. Towns- the important community role people were shocked to hear that the that post offices play and the r ~ postal service had proposed a facility damage that occurs when ~ ~C; more than four times the size of the cur- they move out. To that ~ ' y ~ rent one, including a loading dock and end, Jeffords spon- 33 parking spaces. In their view, it Bored a bill in the evould be completely out of character in last session that ~ - the oldest tocan in Vermont, which has would set stricter ~ _ ~ c buildings dating back to the earle~ requirements for `a ` ;;,;;,,,`.s~;. 1800s. "~~'e want the post office to relocating a ~ ~ ~.r match in size and design the character post office. He ~ _ of the buildings already here," says is expected to Mayor Glenn Smith. "Our question is reintroduce it why they needed to quadruple the size." this session. Smith is not the only local official In the mean- scratching his head over post oft""ice .time, each town is on decisions or finding it tough to battle an its own. York, South Carolina, tried Ham, of the Vermont I-eague of Cities. institution that is trying to remake itself negotiating with the postal service to and Towns. as an entrepreneurial enterprise. save its doee•ntown post office. "It was ~X~estminster thinks it has gotten the Postal officials say that first consid- very difficult to work with them," says postal service to agree to 12 parking eration is given to existing facilities, but Cit}- Manager Trey Eubanks. "u/e did spaces, down from 33, but other prob- frequendy anew building is planned for everything ~~e could to keep them lems remain, such as growth assump- locations far removed from downtown downtown." But to no avail. The facil- tions the postal service is using to business districts. Or the post office ity was moved from an historic build- choose the size of the new facility. offers proposals that are inappropriate ing to a 20,000-square-foot office across Meanwhile, the Vermont municipal in size and scale for a small downtoee~r:; from a Super Wal-Mart. league plans to write a guide detailing says Emile ~Vadhams, Vermont's his- Some communities have better luck, what towns should look for and hoee toric presere-ation officer. "Thestan- but it almost always im~olves an they should negotiate when the post dard model is more appropriate fora extended battle. Blackshear, Georgia, office comes in with proposals. "We shopping-center li~cation than the population 4,000, got a scare last spring found if you don't make a fuss," Hom heart of a downtown." wl-ien the downtown past office says, "you're going to get the post In response to a letter from U.S. Sen- announced it wanted to move to a spot office standard design plunked down ator]ames Jeffords, who with the rest of or. heavily traveled U.S. 64. More than in town with no relation to where the the Vermont congressional delegation 1,300 people signed a petition oppos- town would like to see it." wrote to the LISPS about its "disreeard ing the move. There were alot ofineet- -Ellen Perlman 18 GOVERN ! N G February 20~~r Governing.eom t I <te4 con~panioii of succes,ive g`enera- Vt )I tI ins of k~len7ish-any i~ „s t~ ers. Its pnpnl!; - it4' t_,i ncil2d ar,4 anuu~red the company T ~t-~r hls~elde-~ daughter. r +~r',~~) ~ f~62i grew steadily and surged ~ <<,;;, ?:ie ultroducfion of flavored lip gloss. ` liar s~~ Iwbr~rt'~~ Lip bmackcl ryas fol- . l~~'~rd~Illg ~ ~~1 In ved k,ti ~3 ocher flavor's and In~>pI~?d a tUt1 l,n~ ctploducts. TI~e con7p<my nad a ~ i i nt ui i anIda and sales world-wide. ~I~ ~~1d~ a~,OS113e~1CS Plc`~Ilt ~ I;l.t t ~e ~ ea~~s n5u, In a cost-ctn±~n5 v, it clo~~~Ii iTS ( anadian operand Is. ~,~t1h~s ~ld ~ter~~$yp~S ~ leis v~ zre st111 stro i,, and ~i rth the ektra c„~nadl~, n workload a-nd the hg~ht job mar- kai, thr company was itesperate fm- e,ttra Sen1oTS-Oniy PrOdtlCtlOnLlne handy Several temporary agencies sup- plied ~~orkers, but on the ~shole they were ~t i~BOI1ne 821 ~'aCtOI'V unre~iabte~. i~Ir. Bell and his wife,Julie, prtl~hed in on ~aeekends, feeding Lip ~~aC~iS fi~T f~le T22II lV~aTk~t Smaikers into bores. 'ib help with the holi- day ruse th~It year. Bonne Bell retirees ~~er~ 7~ked to help out. and they did ~~~itl~ ~'ran~. Sinatra and Glitter ~lo~;~ I dish ~ skin. ~ \I ES~iI I~ad an epiphany. ~~Thy r,ot r_re- afe~ ah: entire production deparnner.t of By ClraRr A;ySEtEPP,Y older workers? Thy notion was based il~ zTt nn numbers: tLe convergence of low Sia,ff Feporler nf'Cn~, SV.~~.~. S~rt:ceT Jorarr.u. ~ I'~" LAIiF,1lrOOD,Ohio-By noon, .the ui elYl(os-min aml i large-and ~IO~i~- , ~i~crnen of Line. 2 have pecked and boxed it hcplDatu n of .>>d. ~ ad!11ts. But it << 'O,g00 tubes of Bonne Belt's sti~~irled Lip ~ I ,n r_~oted i~l Iri~tniit rie. kllOwS that se- S~Iake, a lirluid lipstick popular among teen- 1 ~ ~ g, Lion on uIy levy, Involves trade-o.ts ~;e girls v,~ho ~a~~ant their lips to both glisten .~:id t~iat lives can be enrir_hed by interg~en- ~)IId taste like ~~°hipped vanilla cream. ~ ~a rai e~cn3 ~ os Oiler workers can ?,IPJthIllg 04er 16,000 iti COP.Sldered V"eLy t *2I b~)llilgei 'nee k~E "D~t t1~~~ gained food, and Ann Scilnably, h°r white hair I~o;n ~ ~periEnco alld ion goer vcrkers can }1~91~d back smartli~ in a knot on the top of o[e7 th~::~ elders a h~ Idge to new technolo- r;~~ ~ 1 I ~1.;.,~t Is. a+. tunes, an Imi,Ithonr Iirr head, :vonders aloud 4vhether the after- neon Shift "w211 be able to top this." able ~ i[u~~~- r ~ t,. ~ ll dI ~ ~,~~ed something TL ~~gatherpiuses , ,lswcatersandsay _ tLe;r i,UOrlbyes. One ~~~o~nan grabs her cane. ~2r u~; ill. p~ ~pl~ lid ~,vr t e younger ThP 21c awe a;c of the assembly r~.i ~ t I~ t~ I ye ~s He c'Id;rt i~ke it. ` E!'l.lr aelY-c~~n. ~ ~~~u~ .1~7~ 41t Yus owes, ability I~>>e tvu~~c~ ~ in ti~I~ dt, aI uz~el,t is 70. The i~st lI.> tau 1~~1 _in i to K:~~iI Itp. cu „ ~s;. J~,~ ,'hlL (fie has spent s2,~ e:Irs in the cosmetics r ; v~ I +ild nd r• ~ N°~~ <iustrc, whlLh Is ~Ih ~I kilt. y~~uth and lo~ak- f ~p I fi-F. ~ , _ i I .g good. He walksa ~ ; n~rle~ tip work or th ~ . ~~i0 ,.LL'un ~ I spends ~a_rt of the tnorn~tg u1 tha cul~~Pa- i .I ,ti',, n:~1_ed r r ~tll?_- - Ry'S E'X@rCISB TOOI11 Still, Ile tlirnBtl 7b 1slSt ti s ~ ~ s?d iII a , rr-!+3nth. and aging, inf. yl~uth-oriented col- t~Ire I-sn't easy for arvc ue. He is com,Pti- t ~I 1<In~ C,'ISS I I Ieh- ' ~ , ~ r Ns lu~cd ol~t,id~ Cie ,e_ ~ tare b~_ nature. If ha Is ,omg to compete, ~ / ~ nu tivarlts to tlo so r,n his oven level. He l.;s B:~11 launched ~ ~ ~ ' figu.ed oth;;rs would want the same. Be- this scns~rs-uis v prn- . ~it~es, 4yhe22 you are 60-plus, You don't nee- ~l ~~ton dep~I~ trnent <a9 ~ _ t ssariiy want to listen tothe conversations here tour years ago, ~x= of 2p-year-olds, let `alone to their music. nr i as a gland Social JeSS Bell ~ ~ ~Ltali7g morning shift, H rank Ssnatra I s~crun nI but s5 a - ~ eie~, Ides Line 3, courtesy of `~~0 tiiPP~:TR I,I ctil II E~ ;:,I~~c s ?noire. Thy u,mpan~; ~ L'I e ~y-Ii~tening music oI the 19~~ 5 ~rnd r_c,ed «o~ re Senu~~s were .I~ailabte. ~ 'c,Cs. Julial~a Cat'ItOn, F5 and tl,e rno~,ler of P.etllrca now accomt for close to `ZC~'~ ll'~ owncr~iklreri, is incn;Irge ot.Eight 01~ bonne L i1's wc,rk tcrce ~~;f 500. The v~~ol•kerswho insdt~t glittery cheek gel. nail br~xit, hc~ndi,°s ~.vurk that was once out- polish, akevc•hain and a Lip Smacker into s~~.r, cd, ±ti~inr~ the company more fn0n :i;l a tir~ti~ plastic p%IrsP.. Iwtrs. `Carlton chzcks I~:!1]i0~1 SIIi['~ !f ~5a5 '.ai~Ileh~'d and effeC- he't >h'G+'Ii Order_t~) Sec; ~:ClS'ITany I;TQXtJ 8re r ~i~~ s.itn~,ii~~ si::ptics who tiionght ran- i7eec'z,d.''She keeps count during theshil~t Ii r~' d.t.~±.llnent with septuagenarians tc~rtla4:esure they meettheir quota. It's 1 ~i~,?'It.ICiil~:'IS..~itiipnlE nt gJals are Set aIld 22Cst 17ar0It=pork, 9h2 SavS, 11121 lt'S pC8C152, .:r t. 1 i r. ~~~~e is ainu~st nil. ~'+~Iic'h she Iyii°s. 'Plat and the fsrctthat she" ~ii h'ii - +~'.~'n Itttltel', JFB,i@ Gi'0<<I' t'd©id.w2t1i her }}22r3. Ik'L, ~,',i . 1i~ l'-}~.,°i~ 'tl° ~~~t1t WClrkll~ ~1IId ~~II's. t~.arlt011 haS httie-illtc:rCSt In WQI'k-_' i ` ~ i ~I r:i_i ~ ~'1l'tit 41, ~;I~~. I~"+n Wrth_~``~llnger I?•~Ople. "I ralSed m~ ~i, ~ r 1ti 1 k~_~~si.~,. 1_~~siuct- ~ mitts. It`s my turn to be with people my r,.n~I ho:,:~,~ : ~~';~Ins-n wh~i ca.lte t~~ ~ Plead 12~rra to ~'age.415, Column 1 [;i:~~:~r?,_l and Y ,,.,I~ ;,.,lhrg 'fen-O-Sis, a t,lah cIr .user panted after the o;flce nu;n- her r_~f the cir~~~list e~:do concocted it. The Fi,°-tr t~, .h l;tly ~ v. et a.nd sl.gl~:',_ ~c,.Ci,E I, tl~'-SI:i~~IitIg ii~lltd ~t'~LS 1171X24 ]n f ~ i....,.... nrn.,_,a:,... r., t>. Tr. .ham,,, ih~~ t e~io~s-only r~~~~~:~ i~~ ~.~i~es terefltyp~s Continued b'rorn Paye.41 _ own age group: We cane talk to eachother. Sire don't have.to compete," she .says. If someone is sick she fills in. She' moves ° people to easier tasks if they wake up-one ` morning with'stiff joints. "I know what ~ ~ , arthritis feels like," she says. ~ ~ ' ~ ,r ~ ~ Connie Bowen, a neighbor of ~4lrs. Carl - t ' ~ ton's,-stands `toward the front of the line ~ ~ ~ _ ° ~ T'~ because she's #ast and keeps_ a 'steady ~ ~ stream of product coming down the con ~v ps ~ ~ ~ veyor belt. IV1rs. Bowen worked for years X ~ ~ r3 ~ ° > t at InEernational Business Machines Cote. ~ ~ , ~ ; ~ ~ ~ punching data, into cards, then feedinb ~ .v. A~~tiu cards into computers:'For a long time, the ~ ' company trained her when new machines ~ z s •',E ~ ~ ; ~ ri~y ~ . z~ , ~ c,ime out, but then it didn't bother. ~ ~ r r ~ ~ T • ` , Why train me when. younger Rids com- ;x„ ~ 4 ' ~ ing out of college already knew it? ILIy f r, time came. I was a ed'out. It ha eris to ~ , - g PP ~ ~ x t ti-~~~ everyone in the computer world," she says ~ ~ k'r ~ ` ~~t ~ ~ . N matter-of-factl "When new machines ,x ' x ~ ~ _ ~ come out, they retrain. or replace." ~q~ ~ ~ ~ ~ Not every type of work is suited for ~ r~ older workers but Mr. Bell believed it could la o, hE ; ~ ~ ~ ' ~n Pnnrl~ Rell's .SE a,o~.;-r ~i~r~ r? ~purh~urnt packaG~e the co~~iha~zu's Li_p work at Bonne Belt-though itwculd re- ~~r,~i~.,i ~ <<;~~;;~r jh~o~u t Blrr ~,~rcd B t~: Jnsi~ Kotiaera, Clrristiart ;?iilh.r, "~'i~ii~rrt quire a,different approach and msndset.He ~ didn't know of any other company that hats ~~~-fiehl a~u1 :'17urgc~ret Tjcon~as ~ a senior department. In general; there are h~L~ord of 'Mouth h :nei}~ for co~c~rts end gam.,'~ng trips. few options or `opportunities forolder peo- rte:c; rats are enerall yard of mouth, ~ , plc who want or-need to continue working which means pe~pse like it enough that Psays pit~ochleand poker nose times a mgnth. tllare important is the daily- t~ou- and not just because of mandatory retire- theJ' tell people they care about. That, in tine the. job provides: Her husband died 2,0 mentpolicies. Older workers .are largely.. turn. creates a more familial ~ ~oup. Six z,Fars ago;."If I stayed at home, Iw~ouldn't dismissed as too slowand costlyor asmis- members of the St. Ciement's b~wli!iK g~etdressed until noon she sags. "i like to fits in a world gaga for;the latest technol- leaguework-here. Mrs. Carlton recruited load a mare structured life." ogy.He found that out when-he floated his her neighbor and her son's mother-in-law. T-hey allhave their own'ralao~is for idea by the people in charge of manufactur- Hilda I42etzgar, told her hairdresser, D~.t- ~ d h ing and packaging, They balked: They said one, at Alternatives Hair Desig~l, who working into their seventl Pde;00} biweekl older eo le would be inefficient; they«~or_ yond. About Half need th.. 5` ` ~ ) P p passed the word to Evelyn Cicehri• paycheck to pay bills tiearly six"in 1C ried they'd complain they couldn't do the Mrs. Cicehri had been out of work for work or thaf they needed breaks or weren't seven weeks before she a lied fora "ob. workers ire tt,e private sector_reach retire- ' feelin well. "I 'ust refused to acce t an ~ of PP I rrtetlt age .without a' defined-benefit pin g J p y She was 87 at `the time. When iVlr. Eell lion from thew lifelang_work, the Labor that he says. "Let's:-try it and see if it .heard about her:application, he houg~ht, Department reports. That leaves 'thew works," he proposed. ~ ``Oh -My God. Wltat are' we getting our- largely :dependent on oci ,l Czcurity, He began conservatively, taking three selves into?" and rushed from his: office to 0 older. packag~sng tnachines':and two c-an- meet her:: This lsn't asitting jab,~ilr. Bell vrkiich oi~ average cavPrs two thirrl5 a~ an veyor belts out of storage. He ddn'twanto ' informed her.'She didn'fneed a-chair and elder middle-class person's need invest a lot of new equipment until he was preferred to statics, she replied. `l`alcing dare of P,iotlrer sure it would .work. More importantly, he She told him that she owned a custgnl- 3udv .Lavelle receives a monthly pen- . machines were slower. If they went. oo drapery company for 40 years and made fast, people would become frustrated and dra es for his older sister, Bonne.` She sold'. sion of. about 82,000 from per years. as a P teacher iuthe Cleveland Public School sys- leave. Word we*tt out to senior-citizens con- the business in 1987 ahd worked 10 years- tom: That akes care of he~• mortgage, car tors and churches.. Sixteen; people were for the new owrner but left with a few oth- payments and insurance. Her Bonne Bell hired to work part-time on 4-hour shifts. ors when the owner started screaming and .There are now close to 50 retirees on slamming his ruler on the desk in front of crock pays: tar food and clothing, and each shift. There is a waitin 'list of 10- gives her a chance to ga out to lunch ar , g her. "He-was trying to get rid of all the old dinner. notable in an economy wsrich; even as' it people," she suspects. Ivis. Lavelle also takes care of her weaY.ens, still enjoys ow unemployment, She got the ,job and has been there 9._ gear-old mother. Her mother has dan;en- especially. for this type of assembly wick. since. Sh'e turned90 ill August. She drives tia and'isuridergaing radiationtreatment iVlast workers here are' women, many.of to workand arrives a half hour early to forcancer. "The strain right nawwith her them Widows, although there are four get a parking space and walk on the tread is horrendous," she says. 1VIs. Lavelle was men. Pay starts at 87.50, more than adal- mill in he employee weight room. She ~ ~ a so'evhau~ts,d on riartnnb tYt:~t she hacl to lay above minimum wage, and moves to 88 looks 20 years .younger than she is, al- take a nE,S~,t,at lay: `~~r'sten she got to work, an hour after a year. They get 72 hours of though that would make hereabout the ~oale'askecs hay ltau~ Shy ha:"ing ; paid time off. and 850 i~~srzh of fr e° prod- same age as her two sons; whoare both in pared for their otirn parents ~t 'tses and ucts a m~~nth, h~~:t~tse~, u:,ually reserved their 70sand retired. kriowin~ fh s~rc s. "lam :ad to get for full-timers: Fnere are no health bone- Mrsr Cicehri~works on Line 2; scooping back here ttd~y,' she told tt• fits, which helps keep costs do~i~n Most of up Lip .Shakes as they,tun:ble out of the the workersare ~ ~wered by a spc>>se's mQd- machine that seals them into a'package seal pla_, sir ' ; ~ don't ready to be displayed in stores. she inserts 'need extra coeerage. four in• each mall cardboard box. If it's slow, she labels the boxes. or moves over to 16Trs. Carltan's line to-help out: ;She isn't here.: for- the ti~onev. although it comes in For oti?ers, the fob reptecents a sense gis son .doesn't see the senior depart- of connection and salt-esteem '`rlnst are :~oth¢zs i~t~n ~e st?IE apat~4 of tf,eir grown rnent as a tempord,ry experlme~~f, bizt children's byes lint not as integral as they rather a Dart of a company why: family , ~~ere.:`'Instead of sittingarounfl, I wanted hasalways been importar<t. >~li rt!ns . to do sonlethingwith mylife,"says 14irs. a retail shop here. Jess 3r.'s wile, Hilary, Carlton:-She wasn`t talltmg about hobbies handles brai3d development. In the sum- or volunteering , because' for- better or rnerwhen children are ortt of s ':ool, thefr worse, t?lose pursuits don't ~eun as in~pnr- parents bring them to work. taut or productive: tVhentl ~ phone rings, bor. Rell's younger`son:Iames, a senior she ~uswers with some propriet~~, `Donne vice president, is inquiring aboat space to Bell Seniors.,- One recent Gnristtnas, she and others expand ti. ~ seniors-only department. The sent a Christmas card to R~Ir. and Mrs. senior Itlr. Bell is looking at faster new Bell. It read, "Thanks for allosviug~ us to do machinery, convinced the workers can something useful:"He was struck by the handle it. He's also investigating-new message-and the implication that older pneumatic chairs for those who recehtly, people would feel so_obsolete that they had knee sur,ge,y. fi; ;ked the 90-year- would be~gratefiif for assemllly-line work. old Mrs. Cicheri to keep ~~~orkmg until~she~ ;vlr. Bell doesn't-get involved in the de- was 100. "I will, if you wtll," she told'riim: partn?ent's day-to-day operations. That is left to Bob Wotsch,~53„ a man P,~Ir. Bell tapped as tnuctifor his ability as leis eve~i temperament. Mr Wotsch had been work- ing farBonne Bell for more than 30 years at the manufacturing operations, had 100 people reporting to him, a:nd was involved in the actual production of the cosmetics, which. he loved. ~~t`her IGIr. Bell asked Iiim to matikge the senior _division, he was torn. "I didn't la~ow if it «•ould be enough forme," he says. But out oI respect for Mr. Bell, he agreed. 141r. Bell gave hiti? one instruction. `°I'reat them like brothers and sisters or mothers and fathers: I ctou't «~;u?t you to yell. 3ust tell people ~yhat to dc~ and they will do lt," he~Said. Son?e workers might take advantage of that.. Bui IL'Ir. ~~Jotsch says he,hasn't had that'problem'and at-`' tributes it to their beneration's loyalty and work ethic. "They. don't vrant orneed any-;` one to tell them.. to bet= going;'' he says:;, `BesidesI dnn'tthink yoiigettl~e most out of people by yelling at than. Y"on need =mutual-:respect;" The conten±ic~~s a sins ;involve :someone not getting a paikinn~ -space or raissii?g~~ ~u~- "I g~e~ ^oi, pl<~ints ike 'Shetoak n:y ~iaiz~' and t i;;_. ' ?ct as .the clisciplmariarl," he `says. L'~i; Rio one has left over a disagreement The personal issues are mere complex. ~ "You get very involved because ii is such a I .close department," he says. On a recent j clay, one~workerhad pneumonia. The week .before, someonelvasoff for prostate sur- g~ery. Tlie daughter_ofanother called to :say her mother's bloodpressure was up and she was taking hez~ to the hospital. Iqe is concernedabout them and calls to see-.how doctor's::. appointments went. One woman said she-had to quit because her daughter-lost her`babysitter and she needed to stay home to take care of thee. grandchildren; '."I said, ,`Don't quit. Just takea leave of absence,' "he says. "Anoth- er's husband has Alaheimer's. She n?fight call and say, `He's not acting right. I cat?'t handle him today.' I say `T~~.ke the day off.' i"iIrBell's sonJessJr. Is new CF.O and leads 3 team of executives in then 4ps, e~:pandz?g the reach :find srope,of Sonne Bell profl~~cts; "Tl?ey're a-new breed, com- pater literate and most?tiith ~I13As," says the s;;tior blr. BeIL ~ inn ~~Y~~ ~ J Gt,nt~ct,ru ~{~C Block rant. to benefit downtown homes ~ The City/ haS put After reviewing a list of po- removal ~of blighted structures Commune Q2V@!C rn@rlt tential projects with the Eco- for an upcoming senior housing `r p nomic Development Commis- project, development of the Win- BlockGrant funds to use Sion cEDC)> city staff recom- sor Plaza senior housing. com- mended apair of spending op- plex and utility. extensions for 011 Other projects tions that were approved by the DHY corporate headquarters at doWntOWn City Council last week. Afford- the corner of Holyoke Avenue able housing and the long-term -and Gounty Road 70. vitality of downtown were des- $y Jo11 Lloyd ignated as high priorities by the Sun. Newspapers EDC during its strategic plan- ~Qt'tlable ~lO1LSlllg ning process in 1999. Changes may be in store for "The high priorities include The EDC is an advisory downtown storefronts and the ensuring an adequate supply. group: The City Council receives affordable housing market in and diversity of housing oppor- input-from the group on issues Lakeville.. tunites in this .community," involving ndustrial/commercial Housing and downtown re- .said Michael Sobota, commune- development and .other deci- development. are commonplace ty and economic development sions that could have an eco- in discussions at City Hall and director. "Another priority is nomic.impact on Lakeville. among the business community. maintaining the vitality of his- That said, the question, A Community ,Development toric downtown and creating a "Why would a commission Block Grant (CDBG) fund could vision for Lakeville retail cen- that .addresses economic de- allow something. to be done ters." velopment issues, such as at- about both... Under federal law, CDBG trading and maintaining a CDBG funds are available to 'funds can be dedicated to vari- business; be interested in af- the city. on an annual basis. aus uses. Past block grants have fordable housing?" begs to be About $103,000 is available this been used for- redevelopment year.. downtown, acquisition of land,: GRANT: To Page 18A r t I~ousin `a serious eeonamc develo ment issue' ~ a~ g p From Page 1A six companies and 200 employees. DOWI1tOWll Lakeville's available land and Indus- EDG members" concluded that. more trial job growth rates point to a need for More dollars will be-dedicated to affordable housing options could more. employees: According to the 1999 downtown projects under the Year 2000 strengthen the labor force, especially in Minnesota Manufacturers. Register; block grant proposal. The Downtown Lakeviile's Airlake Industrial Park. A Lakeville had the state'sfifth-highest ire- Lakeville Business Association has strong labor force is a vital. part of the dustrial job growth rate, at 9.28 percent.. hired an architect to review storefronts economy. Not all members of that labor- Aland-use plan recently approved by along .Holyoke Avenue and prepare force can. find an affordable place to `Iive: the -City Council was considered by the themes and designs to preserve their in the community where they work: EDG when developing block grant prior- appearance. Arlake Industrial Park had three ities. The land-use plan identifies land-- Block .grant funding would assist companies in 1969, two years after de- use through. 2020, providing a look at propertyowners and businesses with up- velopment began on the southeast what kind of growth is expected in grades to storefronts. The improvements .Lakeville site. Now, it is home for more Lakeville: would follow design guidelines provided than 90 companies, and more. than 500 "With the new 20201and-use plan and by the architectural firm. acres-are. available for development. EDC .policies, I think we'll have a better The. block grant funds would buy down Airlake's workforce is comparable to strategy on affordable housing," said Sob- the interest on loans .for storefront up- the population of a small city. The park's ota. "From the EIlC's view, .affordable grades: A portion would be allocated to companies employ 4,000 people. housing is a serious economic develop- historically significant buildings. About' 60 percent of Airlake's 90-plus, meet issue for this community." "Those portions would go beyond nor- companies have fewer than. 20 employ- The block grant dollars will be used to mal storefront improvements," said Sob- ees. Qnly 6 percent.have more than 200 develop those strategies.. The proposed ota. employees. The average size of an Air- project would include input from -the "We're trying to preserve the appear- `Iake'company is 49 employees. ' EDC and the, Dakota County Housing ante of those buildings." Another major employment center is and Redevelopment Authority. Future Architectural firm representatives ex- east of the Interstate 35-County Road 70 sites and development methods for af- pect to complete the study by March. The• 'interchange. The 80-acre Fairfield Busi- fordable housing wauld be identified block grant funds will he available in ness Campus, which opened in 1995, has through the process. July. Star Tribune Tuesday, January 2, 2001 .7 y s, ~lecric~ r a y High demand for power and shrinking reserves are leading \ ~ ~ ~ ~f~ ~ legislators, environmentalists and ~ , ` i~f F energy officials to scramble for - solutions and alternatives. . t f. By Tom Meersman ~ and Susan E. Peterson Star Tribune Staff Writers ~ ` _ The last time a major new electric-power ? ~ - plant was built in Minnesota was in the mid- - 1980s, when Ronald Reagan was president. The last time a major power line was con- - structed in the state occurred even earlier - in the late 1970s. ` After two decades of minimal building, Minnesota is facing the prospect of a serious _ , electricity shortage during the next few years. scar Trbune photo by Joey Md.e~ster A healthy economy and strop,*er-than-expect- High-voltage transmission Anes like these at the Sherco generating plant in ed demand for power means ~ Ise surplus elec- Becker, Minn., may soon not be numerous enough to carry the state's tricity that the region enjoyed a few years ago electricity from plants to substations and on to homes and businesses. has evaporated; energy forecasters estimate that the Upper Midwest vv~ll need 5,000 more megawatts of electricity- more than half of it ] tory and government affairsatXcel in Minnesota - by 2006. That's the equivalent TeehnOlOgy Energy in Minneapolis, but also of five new nuclear plants the size of Prairie because of technology - addi- Island, or larger numbers of plants fired by helping Spin tional computers, scanners, pnnt- coal ornatural gas. Z7 ers, Internet service providers and "That [forecast) really got our attention," increase in data centers. "The growth in said Linda Taylor, deputy commissioner for demand with all of this miscella- energy at the Minnesota Department of Com- neous segment of electronics has merce. "You. want to be sure that when you electricity use resulted in much more electric use than anyone thought even a few turn that switch the light turns on, but even years ago," he said. more im octant in Minnesota, ou want to be But the need for new power p y A recent analysis by the Min- plants is only half of the problem. sure that your furnace stays on." nesota Department of Commerce Even more serious is a shortage of The shortage cannot be fixed quickly. New high-voltage transmission lines. found that electricity use per resi- powerplants typically take five years for plan- New sources of electricity will do dential customer in the state in- ning, hearings and license approvals -and nothing to meet demands unless it creased by nearly 20 percent be- that's before actual construction begins. can. be transported to urban cep- tween 1990 and 1998. lets; and existing power lines. State enef~ plan ELECTRICITY continues on A6: already are nearly overloaded, -An im endin shorta e o hi h-uolta a making them more vulnerable to The looming shortage does not p g g f g g service interruptions. -mean the lights will go out in five transmission lines is even -more serious. Electricityuse has increased not years. It will, however, erode the -Electricity use per residential customer grew only because of business growth in backup "reserve" system that by almost 20 percent from 1990 to 1998. a strong economy, said David swings into action during periods Sparby, vice president for regula- of unusually high demand. Copyright 2000 Star Tribune Republished with permission of Star Tribune, Minneapolis - St. Paul. No further republication or redistribution is permitted without the written consent of Star Tribune. The regional system, by agree- , ment of its members, needs to To the Capitol have a reserve capacity, or margin, ~ Generating power in the Upper Midwest equal to 15 percent of the peak The Commerce Department recommendations aze likel to be a The Mid-Contu>ent Area Power Pool (MAPP) includes 105 utility and non- .demands for powei that normally y utility members in aN or portions of nine Upper Midwestern states and occur during the hottest days of starting point'for discussions at the two Canadian provinces. MAPP oversees the buying and transporting of the year. This also helps assure Capitol during the next several electricity between its member companies and coops, which serve that there will be enough electric- weeks. Rep. Ken Wolf, R- about 18 m0lion people. ity incase some of the plants that Burnsville, who will become chair- are desi ned to run constantl man of the House Regulated have to Shut down for short arty Industries Committee, said he's Frhdpal generathg plants 3o megawatts and larger OdS. P h the re®on, both existing and authorized during the rrext 10 years ¦ FossO fuel convinced that there's no time to .-.4 But the increased use of elec- waste. "It's important that we start i O ~ *Nuolear Saskatche~.van+ tricity has'caused the reserve mar- this debate now, and that we don't ...,,.~4_ Manitoba ~ Hydro gin, once well above 20 percent, to put it off for a year or two." ~ yyb,d shrink closer to the 15 percent Wolf said he will hear several ~ Dakota ~ minimum considered necessary proposals for change, iricluding E ¦ r for a reliable system. And "it's dan- one that will be spearheaded by x . ~ Montan ~ ¦ the Minnesota Chamber of Com- a Minnesota gerously close to disappearing," t ¦ j a ~ said Commerce Department Com- matte, which doesn't think the ¦ missioner James Bernstein. ~ state Commerce Department's ~ *¦s~Wisconsin - Industryforecasters expect the proposal goes far enough. Soutri9akota ¦ ¦ ¦ i¦L~a ¦ _ reserves to decrease to 14 percent The Minnesota Chamber, ~ ~ ~ ¦ in 2002 and then to decline backed by several utilities and ~Yy~rr„~, ~ , o ! _ steadily to•6 percent by 2009. many businesses, wants changes a ¦ ¦ To encourage the building of in energy policy to include the first ~ ~ ¦ ¦ ` ¦ newpower plants and power lines, ~ tw Nebraska p bwa ~q * - the Commerce Department will steps toward deregulatingthe elec- t * ti • g ¦¦ai , i-' propose to the 2001 Legislature trio-power industry. This would, ~i----~- ~i ¦ ~ lu;ncis , several changes, outlined in a among other things, breakup tra- ~ ¦ ~_..,..:,,~,,....•.V-.- report called "Keeping the Lights ditional utility monopolies so that Colorado ! f 1issour~ ' On." The proposal has four main more companies could compete in ~ i<ansas ~i ~ tour onents: - ~tiks P Minnesota,. eventually enabling I . ~ . ; > Establish estate-run can- consumers 20 choose their power 1 u 200 tralized planning process that over company based on the most the next year would identify Min• attractive service and price. iZeSerVe Capacity Shortage forecast nesota's energy needs and deter- Deregulation, also known as mine where and when new plants The MidLontinent Area Power Pool requires that there be a 15 percent and transmission upgrades will be restructuring, bas been imple- reserve margin between the demand for power and the maximum required. mented in varying degrees in generation capacity. Starting in 2001, MAAP forecasts that the > Promote modern energy about two dozen states, with required 15 percent wiN just barely be met, and by 2006 there wiN be a technologies, particularly smaller mixed results. shortage of reserve capacity. "distributed generation" projects In any case, said Bill Blazer, the Projected shortage such as natural gas or wind- Chamber's senior vice president, 9z,ooo Capacity: Mazunum power of reserve capacity powered turbines and fuel cells, current and future power compa- megawatts generation capacity ~ me which might. take. some of the Hies in Minnesota need greater MAPPreg'an stress off the transmission system certainty about the regulatory by being located closer to where environment. They need to know, the greatest demand for electric for example, how long it will take ' service exists. ` > Increase energy-conserve- to build new power plants and 15~ " ~ Reserve lion efforts by moving conserve- transmission lines, and whether r~,e d .--capadty lion programs from individual util- their return on investment can be capacity obligatlore hies to independent third-parry higher than the current regulated "'ark" ~ ~ ~ Theforecast providers. system will allow. Otherwise, they t.oaa:>=ore~<3scs of } > Explore ways to encourage will be loath to commit billion maxknumdemandfor - 'demand competition among wholesalers = . level, plus and to attract inde endent ro- or more to build large plants. ~ t,, Po er giuuig tlrriesof ~ ~ = MAPP's P P Gaa,~ use, such as hot r r ducats who would build new Sparby, from Xcel Energy, ~ ~ requced 15 summ r~d r5 power plants. Some of the changes agreed that it's time for major _ a ` _ ;percent could include reducing orabolish- changes in Minnesota. Unless ' _ ' reserve ing utility property taxes and some of these regulatory processes , _ ~ _ ' C ~ margin to speeding up the regulatory are streamlined, he said, "i 's ~ ~ ~ i ensure approval process in Minnesota. going to be increasingly difficult to . reUabiidy "It should not take six years to build the facilities that our cus- 2000 zoos 2002 zooa zoos 2005 zoos zoos Zoos Zoos propose a plant and get permis- tourers are going to require." sion to stazt building,' Bernstein Sparby and David McMillan, a source: M;d.c«,t;nent area Power Poe star rrbune graphic ay Ray Grumney said. The Commerce Depart- vice president of Duluth-based ment's goal is to cut that period in Minnesota Powei, are concerned half while retaining adequate envi- about the ro osal for a state ronmental review of projects. P p energy plan and other measures Copyright 2000 Sfar Tribune Republished with permission of Star Tribune, Minneapolis - St. Paul. No further republication or redistribution is permitted without the written consent of Star Tribune. 'that would centralize planning _ aggressive energy-efficiency pro- The project has received $10 of power shortages, wild spikes in functions that they think aze better .grams, more electricity will be million from North Dakota's com- electric prices, or both left to the marketplace: If the state needed. But they argue that it mission in order to do initial "It's not only a question of ' wants to attract new entrants to should be generated as much as reseazch, said John Dwyer, presi- keeping the lights on and the build generation and transmission possible by greater development of . dent of the council, and the part- home fires burning," said Stephen projects, McMillan said, it must wind farms in the state, and by ners aze looking for potential in- Peluso, vice president for trading avoid the temptation to abolish small-scale technologies that can vestors, developers and customers. at Xcel Energy. ~ "The continued one onerous regulatory system, produce electricity closer to where The power plant would cost about economic growth of the country is only to replace it with another. it is used: natural gas-fired cur- $500 million to build, they esti- in large part dependent on low- bines' in industrial parks; indi- mate. cost, reliable energy." Alternatives vidual wind machines for schools, The shortage of electricity in "Whatever technology, invest- A coalition of environmental, churches and other institutions; Minnesota also may change the ment and infrastructure we decide consumer and labor groups also is and cogeneration projects, in debate about nuclear power's fu- to build is going to be with us for concerned about Minnesota's which waste heat from a power. cure in the state. The 1994 Legis- the next 50 yeazs and possibly energy future, and is developing a plant is used to warm nearby. fac- lature gave Xcel, formerly North- ,longer," said Diane Jensen, execu- planthat it claims would meet the tortes or other structures. ern States Power Co., permission live director of the nonprofit Min- state's electric needs without Meanwhile, coal advocates say to store nuclear wastes in up to 17 nesota Project. "This really is our building large new power plants or that this fuel. should not be over- outdoor casks, which would allow chance to get it right." power lines. looked as at least a partial solution the utility to continue operating its Tom 1Keersman can be contacted Matt Schuerger, director of the to the region's electricity pcob- prairie Island nuclear plant in Red ~ meersmanC~starMbune.com clean electricity program for Min- lems, and that new technology wng until 2007. Susan E Peterson can be onntacted nesotans for an Energy-Efficient allows coal to be burned more If Prairie Island were to shut at sep¢tenons~stamibune.com Economy, said that state home- cleanly and with fewer emissions down in six years, and if Xcel's owners and industries have than in the past. North Dakota, Monticello nuclear plant north- "saved" 2,000 megawatts during with huge supplies of lignite coal west of the Twin Cities were to be the past 15 years by installing in its northwestern counties, retired when its operating license energy-efficient tights, appliances, already is a major exporter of elec- expires in 2010, theprojected elec- motors and other equipment, and tricity to Minnesota. tric shortfall could increase signifi- by signing up for programs that The North Dakota Industrial .Dandy. allow their power to be interrupted Commission has partnered with Those who follow the issue or scaled back during periods of the Lignite Energy Council, a trade agree that Minnesota is overdue high usage. And he asserted that associauon, to form "Lignite Vision for a serious evaluation of its en- such programs still have huge 21," a project studying the feasibil- ergy policy, though they disagree untapped potential that would ity of constructing a 500- to 600- on what. exactly the state should prevent the need for many addi- megawatt coal-fired power plant do. And they suggest that too tional power plants. as eazly as 2008. much delay will increase the risks Still, Schuerger and others ac- knowledge that even with more ~ ~ r 1 J 'i fit. ~ ~ r ~ ~ ~ _ Il, y ICJ - rti. ~ , , „ ~ - ~.r,+! ~ c n „~~~t. ~ i~ t ' The Sherco coai- x ~ . ...~~a-~. ~ ` : ~ ~.r.,. fired plant In ~ . ~ _ . - Becker, Minn., ~ ' ~ ~ t' ~ f ~ was the last ~r.i~ .power plant ~r~~ s;_ eso- bunt in Mlnn ~i~, ~ ~ ta, in 1987. John ~t Pflipsen, plant ~ ' i ~ ~ ~ equipment oper- ~ ` - ~~_x ator, is shown ~ ~ ~ ~ ~ ~ s , monitoring the ~ controls re- ~fi ; ~ ~ Gently. R,, ' ~ ~ J _ Star Triune photo Y by Joey Mdeiste Copyrighf 2000 Star Tribune Republished with permission of Star Tribune, Minneapolis - St. Paul. No further republication or redistribution is permitted without the written consent of Sfar Tribune. Reprinted from REJournals.com ' Monday January 22 2001 Mixed-use project proposed in Lakeville SUPERTARGET MAY BE ANCHOR TENANT Liz Wolf Web Editor tt's been a long time coming, but Lakeville, afast-growing Twin Cities suburb of 40,000 people, may soon have its own commercial retail hub that could be anchored by a SuperTarget. This type of a development, city officials say, would help keep spending dollars in Lakeville. The Avalon Group, based in Golden Valley, is proposing plans for TimberCrest at Lakeville, an $85 million, mixed-use development on a 100-acre site in the northeast quadrant of 185th Street (Dakota County Road 60) and Interstate 35. Preliminary plans call for a mix of big-box retail, possibly including a 182,000 square foot SuperTarget; service retail; restaurants and corporate office space. The project could total in excess of 550,000 square feet. "Ninety-six percent of Lakeville residents say they shop outside of Lakeville," says Bob Erickson, ' city administrator, citing a recent survey. The majority shop in nearby Apple Valley and Burnsville. Topping Lakeville residents' wish lists are a grocery store, restaurants and big-box retail, he says. "This project would address all three priority needs," he says, adding that if SuperTarget commits to the development, the concept offers a Target Greatland combined with afull-size grocery store. The. first local SuperTarget is under construction in Shoreview. Target Corp. spokeswoman Patty Morris confirms the retailer is negotiating with Avalon, but would provide no further details. We're working with Target, which has interest along the I-35 corridor," says Barbara Van Auken, Avalon executive vice president. "They are committed to the area and as committed as they can be to this project, since we have not gone through the city process yet. We will go through all of the city processes together, and we're confident that we'll receive the necessary approvals. There is tremendous community support." If a SuperTarget is built, Target Corp. would own the site and develop the store itself. Although Van Auken says she cannot disclose other potential tenants for TimberCrest, she expects the project would attract a variety of retailers, featuring such merchandise as electronics, books, sporting goods, apparel and footwear. As for the restaurants, the developers are looking for family-style and fine-dining concepts. The development also calls for an office component. The project s leasing will be market-driven," she says, adding that interest among users is very high in the area. Avalon, which would develop, own, lease and manage TimberCrest, has an option on the site from landowner Fortune Realty. The developer has made no formal application to the city yet. "We estimate once they do, the development review process will take six months," Erickson says. No city assistance has been offered to Avalon for the project. However, there already are improvements planned for the 185th Street/I-35 interchange. Kevin Brazner, Avalon executive vice president, says he expects site work to begin this summer and SuperTarget would like to open in October 2002. The next step, he says, is to hold a series of neighborhood meetings informing residents of the plans, and then Avalon will present its proposal to the city's planning commission. http://www.rej ournals.com/Story_Print.cfm?StoryID=6160 2/2/2001 Reprinted from REJournals.com Monday January 22 2001 Lakeville OKs luxury apartment complex ESTIMATED COST IS $34 MILLLION Liz Wolf Web Editor The Lakeville Planning Commission gave its nod of approval last week fora 252-unit, upscale apartment development in Lakeville. If approved. by the city council, the $34 million complex will be the city's first market-rate apartment project in more than 20 years. The city council is scheduled to review the plans. on Feb. 20. Developer Foray Real Estate & Construction, based in East Bethel, is proposing to develop Kenwood Crossing on a 27-acre site at County Road 50 and 185th Street. It would be the developer's first multifamily project.. "About 400 units have been built in Lakeville in the last 12 years, but they've all been subsidized. This would be the first market-rate complex in over 20 years," says Bob Erickson, city administrator. The project calls for five four-story buildings, built of brick and glass, plus a separate amenities building. The breakdown of units is 43 one-bedrooms, 159 two-bedrooms, 40-three bedrooms and 10 efficiencies. Monthly rents would range from $1,250 to $1,500. The average unit size would be in excess of 1,000 square feet. -Units would~eature high ceilings, fireplaces, high-speed Internet access, oversized windows and large balconies, says Ron Wald, Foray chief manager. The complex also would have underground parking. The amenities building would offer a community center, exercise room with lockers, conference room and party room. In addition, the complex would feature an underground, outdoor swimming pool and patio. The developer has a purchase agreement for the site with landowner Fortune Realty. "It's a phenomenal site" Erickson says. "It's all wetlands and woods and the developer is only going to touch three trees." Wald says he expects to close on the purchase of the land after receiving city council approval "When we first looked at the site we thought it was very dramatic, hilly, wooded and well- elevated," Wald says. "Then we started peeling away the layers. and looked at the demographics of the area and saw the pent-up demand." The buildings, he adds, have been designed to fit into the site and maximize the views, while being sensitive to the existing wetlands and wooded areas. Foray hired Lisa Moe, president of Stuart Management Corp., to market and manage the complex. "We'll kick off the marketing as soon as they start moving dirt," Moe says. The developer is adding a lot of detail to make the complex look very residential and fit into the area,. she says. Foray plans to start construction this spring and units would begin coming on line about six months later. The project architect is St. Paul-based Finn-Daniels Architects Inc. http://www.rejournals.com/Story_Print.cfm?StoryID=6151 2/2/2001