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HomeMy WebLinkAbout10-23-01 City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, October 23, 2001, 6:00 p.m. Lake Marion Conference Room, Community Development Department City Hall, 20195 Holyoke Avenue 1. Call meeting to order. 2. Approve September 25, 2001 meeting minutes. 3. Incentives Study A.) Tax Increment Financing -Finance Director Dennis Feller. B.) Presentation by Paui Steinmann and Mikaela Huot of Springsted regarding. development of policies for: • Tax Abatement • Industrial Development Revenue Bonds • DTED's MN Investment Fund and Redevelopment Fund • H RA Levy • EDA Levy 4. 2002-2004 Strategic Plan A.) Discuss Draft Vhork Plans 5. 2000-2001 Strategic Plan Update A.) Labor Force Committee -Todd Bornhauser, Lakeville Area Chamber of Commerce 6. Manufacturing & Technology Month 2001 Proclamation Governor's Certificates Recognition Luncheon, November 8, 2001 at Brackett's Crossing, 11:30 a.m. 7. Adjourn. Attachements: • City of Lakeville Commercial/Industrial/Institutional Projects., October 8, 2001. • Broadband Through the Sewers; Building a True Last-Mile Fiber Optic Network., Minnesota Real Estate Journal, May 14, 2001. • Herbivores for Health., Growers Start A Small Co-op to Share Knowledge and Market Medicinal Herbs., AUR/ AG Innovation News, October 2001. • .Lakeville Keeps Rolling., Minnesota Real Estate Journal, October 15, 2009. G:\AFlad\Econdev projects\EDC\2001mtgs\910ctober\1.02301 agenda.doc 1 • Construction: After Strong September, Builders Look Ahead., Star Tribune. • 5.5% Fixed-Rate Financing For Manufacturing Companies., GE Capital correspondence. • Diamonds In the Rough-How to Maximize .Real-Estate Redevelopment Opportunities., Minnesota Business, August, 2001.. G:\AFlad\Econdev projects\EDC\2001mtgs\910ctober1102301 agenda.doc 2 Economic Development Commission Meeting Minutes September 25, 2001 City of Lakeville Economic Development Commission ..Meeting Minutes September 25, 2001; 6:00 p.m. Lake Marion Conference Room, City Hall Members Present: Vogel, Matasosky, Pogatchnik, Tushie, Erickson, Miller, Bornhauser, Schubert, Brantly. Members Absent: Emond. Others Present: City Staff: Robert Erickson, City Administrator; Ann. Flad, Economic Development Coordinator; Jeff Leuders, Cable Coordinator. 1. Call Meeting to Order. Chair Vogel called the meeting to order at 6:04 p.m. in the Lake Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville. 4.A.) High Tech Subcommittee Chair Vogel indicated that item 4.A. would be moved to the beginning of the agenda. Ms. Flad indicated that the Heigh Tech subcommittee is preparing to meet with telecommunications service providers to determine their interest in enhancing a presence in Lakeville. The presentation included the following information: In Pursuit of a High-Tech Future The City of Lakeville Why High Tech in Lakeville? • Lakeville residents are computer literate - 64% reported having access to a computer • 13% of all residents operate a home based business and 2/3 of those telecommute • More professional job opportunities are needed in Lakeville: 90% of residents commute to other cities for work • Businesses in Lakeville desire more technology options The High Tech Subcommittee • .Authorized by the City Council, this subcommittee is comprised of Economic Development and Telecommunications Commissioners • The purpose of the subcommittee is to identify and .implement strategies that strengthen businesses ability to use technology in Lakeville, thereby providing additional opportunities for residents. G:\AFlad\Econdevprojects\EDC\2001mtgs\90September\092501 minutes.doc 1 Economic Development Commission Meeting Minutes September 25, 2001 Goals of High Tech Project • Develop a High Tech Business Park • Encourage additional service to Lakeville 's existing businesses • Educate the community on telecommunications options Lakeville Is The Place To Be! • Quality public neighborhood schools and private schools • Three Technical Colleges, the University of MN and eight private universities within 45 minutes • Highest perception of neighborhood safety in Metro Area • Within athirty-minute drive of 25 major Minnesota attractions, including 10 minutes to the Minnesota Zoo, 1 S minutes to the Mall of America and Camp Snoopy, 1 S minutes to Valley Fair, and 25 minutes to Cabela's. • 1,100 acres of recreational land in 53 parks • 60+ miles of pedestrian bike trails • Public boat launches, swimming beaches and fishing piers • Dakota County Heritage Library, Ames Ice Arena, Lakeville Area Arts Center • Two golf courses within Lakeville and ten additional courses within twenty minutes • Wide range of life cycle housing options with purchase prices from approximately $130,000 to over $1,000,000 Lakeville Is The Natural Place For Telecommunications Growth • Southern Gateway to the Metro (convenient access for to customers and workforce in both southern MN and the Metro area) • I-35 runs through Lakeville and Cedar Avenue provides an alternate north-south route. • County roads 46, 23, S0, 60, 70 provide additional access • Strong and growing business environment with over 800 businesses • Airlake Park is home to over 90 businesses, including international businesses and company headquarters • Land available for additional development • Second lowest tax-capacity rate in Dakota County • Population growth provides more opportunities: 43,128 residents in 2000, 59, 000 residents by 2010 74, 000 by 2020 (surpassing Eagan, Burnsville & Apple Valley) • 20 minutes to International Airport via two routes • Home of Airlake (MAC) Reliever Airport • Fairfield Business Campus is home to sophisticated regional and corporate headquarters Existing Telecommunications Use By Lakeville Businesses • Mail and phone surveys were conducted with businesses, with 52 respondents • Over two-thirds of the respondents (69%) are interested in telecommunications in Lakeville • 42% of businesses have other locations to communicate with • 69% of responses indicated company headquarters in Lakeville; 26% indicated headquarters in other locations Page 2 of 8 G:\AFlad\Econdev projects\EDC\2001 mtgs\90September\092501 minutes.doc Economic Development Commission Meeting Minutes September 25, 2001 Voice Technologies Being Used • 44% use a PBX or Centrex system • 426 POTS lines are operated by the respondents (not including the school district's lines) • 21 companies use T-1 's or Fractionalized T-1 's • Respondents indicated it takes an average of 9 days to get new service installed • Businesses indicate they would like to have a choice in services and providers • 3747 LAN work stations reported from 33 businesses • 12 businesses currently use a WAN • Most frequent WAN connections: L T-1 2. Frame-relay 3. 56kbps 4. ISDN • 91 % of respondents have internet access • Most frequent internet connections: 1. Dial-up Modem 2. xDSL 3. T-1 4. ISDN Future External Data Needs • Sharing data (9 companies) • Accessing other corporate locations (6) • Accessing information managed by an ASP (7) • Creation of Virtual Private Networks (7) • IP Telephony (1) • E-Comrnerce (9) • EDI (7) • Desktop video conferencing (7) • Research via internet (8) • Other (1) • 8 companies report their needs are not being met at this time Questions for Service Providers • Do you provide service in Lakeville? What service? Where? • Do you have plans to increase service and/or infrastructure in Lakeville? • How would you suggest Lakeville pursue getting your company involved in the development of a High Tech Business Park? • How would you suggest Lakeville assist in encouraging and/or introducing additional telecommunications services to businesses? Discussion ensued about the nature of the meetings that will be held with the telecommunications service providers. Mr. Lueders indicated that the subcommittee will use the knowledge gained. by the companies that do not have a presence in Lakeville to encourage those with an existing presence to increase their service andlor infrastructure. Ms. Flad indicated that the High Tech Subcommittee is reviewing the draft of the presentation .and their comments will be incorporated into the final Page 3 of 8 G:WFIad\Econdev projects\EDC\2001mtgs\90September\092501 minutes.doc Economic Development Commission Meeting Minutes September 25. 2001 ' presentation format. City Administrator Erickson suggested that the presentation be made available to executives of local companies in order to share with them the efforts the City is undertaking to enhance the business environment in the community. 2. Approve August 28, 2001 meeting minutes. Motion 01.22 Comms. Pogatchnik/Matasosky moved to approve the minutes of the August 28, 2001 meeting. Motion carried unanimously. 3. 2002-2004 Strategic Planning Each Commissioner ranked the Critical Issues of the Strategic Work Plan via fax. Ms. Flad compiled the responses and provided Commissioners with each issues' composite ranking as listed below: 1. Inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. 2. Financial planning for community -encourage community partners -schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. 3. Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. 3. Identify solutions for affordable and Iifecycle housing. 4. Assess impact of interchange priorities for 60-70-50. 5. Need for major transportation arteries in the city including the need to provide adequate access to commercial/retail/industrial areas. 6. Encourage the use of development tools, e.g.: PUD's to integrate city design standards with new developments to achieve overall consistencies. 7. Develop specific marketing for commercial growth. 8. Anticipate emerging/future city economic development issues and develop a proactive solution. 9. Need to have a proactive budgeting process for EDC. 9. Current lack of retail 10. Work to retain the historical.flavor of downtown area, developing it into a vibrant business community & ensuring its long-term viability. 11. Affordability of land 12. Investigate/encourage expansion of airport and rail opportunities and their impact on the C/I community. 12. Make use of Southern Gateway opportunities and proximity to both metro areas. Page 4 of 8 G:\AFlad\Econdev projects\EDC\2001 mtgs\90September\092501 minutes.doc Economic Development Commission Meeting Minutes September 25, 2001 13. Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville's identification - "Where we are located." 14. Implementation of Gateway and Corridor Plan -need defined plan for implementation 15. I-35 Corridor enhancements 16. Explore issues related to East-West Corridor Chair Vogel suggested that the EDC develop Work Plans for the top three issues. Work Plans for subcommittees. may complete additional issues in the future. The highest ranking critical Issues are listed below, along with. Commissioners' suggestions each respective Work Plan.. Chair and staff will present draft work plans to the Commissioners at the next EDC meeting. 1. Inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. Why educate and inform? • So residents can learn to accept some things they don't want for the good of the "whole." • Show residents the. benefits )(fiscal) that business provides to them. • Building. "partnership" mentality between residents 8~ businesses. • Show residents why business growth is good for them. • As residents see tax impact between business & resident levels, have them continue to appreciate the benefits of business base. • Show wide range of benefits (beyond fiscal) that businesses provide a community. • Have residents that are informed about how the City Budget is provided for -use tangible examples (income flows.) 2. Financial planning for community -encourage community partners -schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. FinanciaF Partnering • Communication system (method) to have all related entities working toward common goals. • Define common goals. • Build understanding between business & education system on each. other's needs and goals. • Share information so all entities understand each other's fiscal needs. • Bridge culture differences between business-city-school-county. • .Build understanding on how tax incentives can benefit everyone -even those who think they "loose." • Find ways to involve public (residents, businesses) in providing community (education, etc) needs. • befine .Common benefits of school, city business, county (synergy & what they provide each other). • Find ways to have all entities utilize common benefits to help enhance each other. • Clearly communicate tax impact of business. Page 5 of 8 G:WFIad\Econdev projects\EDC\2001mtgs\90September\092501 minutes.doc Economic Development Commission , Meeting Minutes September 25, 2001 ` 3. Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. Potential Infrastructure Upgrades • Anticipate future needs so when business needs them they are ready. • Be proactive on technology rather than reactive. • Capture the wealth of existing resources (fiber, etc.) as quickly as possible. • Properly market our needs to encourage providers to make their investments here. • Method to anticipate any infrastructure that does not yet exist but will be part of our community. • Airlake Airport used to community's advantage. 4. 2000-2001 Strategic Plan Items: A.) Incentives Subcommittee The incentives Subcommittee met on Tuesday, September 18, 2001 to review the final draft of Springsted's Incentive Tools document. The subcommittee discussed exploring the following incentives in more detail: • Tax Abatement • Industrial Development Revenue Bonds • DTED's MN Investment Fund and Redevelopment Fund Additionally, Springsted indicated that an HRA Special Levy and an EDA Special Levy could potentially be used to generate funds to address economic development activities in the City. Burnsville is currently considering an EDA levy that would generate a maximum of $568,000 for 2002. Implementation of all or a portion. of this levy will be considered by Burnsville when the final budget decisions are made. Springsted will be presenting additional information on tax abatement, IDRB's DTED's MIF, MN Redevelopment Funds, and Special Levies at the October 23, 2001 EDC meeting. Ms. Flad indicated that the EDC may also wish to review the document annually after legislative changes, and may also wish. to encourage incorporation of the Incentive Tools Document into each Strategic Work Plan that is under development. B.) Labor Force Committee Staff met with Todd Bornhauser of the Chamber and Gary Tholkes, Chair of the HR Committee, to provide Airlake businesses greater involvement in the implementation of the JobslnLakeville project. Staff provided the Chamber with a template for the subscription brochure and has processed a $1,000 grant from UtiliCorp United that will be used for implementation of this project. The EDC and staff will continue to support the effort but will take a less active role in the project implementation. Page 6 of 8 G:WFIad\Econdev projects\EDC\2001mtgs\90September\092501 minutes.doc • Economic Development Commission • Meeting Minutes ' September 25, 2001 Mr. Bornhauser of the Lakeville Area Chamber of Commerce indicated that He and Mr. Tholkes will be sending out letters to approximately 20 businesses to determine the level of interest in using the JobslnLakeville product at this time. After businesses respond, the HR Committee will determine when to launch the project to maximize success. 5. Manufacturer's Month 20D1 -update Staff, along with Todd Bornhauser of the Chamber, have been exploring potential: speakers. for a manufacturer's luncheon to be held during Manufacturing & Technology Month October 22-November 23, 2001, Suggestions for speakers are. being solicited from the following organizations: Minnesota Chamber of Commerce Minnesota Waste Wise Dakota Electric UtiliCorp United American Society for Quality- MN Minnesota Council for Quality Minnesota High Tech Association Minnesota Technology Make It In Manufacturing Technology DHY U.S. Small Business Administration University of Minnesota -Carlson School of Management Discussion ensued about the type of presentation that would be of interest to manufacturers. It was suggested that a topic with universal applicability to businesses would be of more interest to manufacturers and others who would be invited to a luncheon. City Administrator Erickson suggested that businesses would be interested in the High Tech Subcommittee's efforts and the presentation that has been prepared for telecommunications service providers. Ms. Flad and Mr. Bornhauser will explore more universal topics. Staff also met vvith John Sucansky of Lakeville This Week Life & Times newspaper and Todd Bornhauser of the Chamber to encourage the newspaper's participation in promoting manufacturing businesses. A copy of the Mayor's Proclamation will be included on the Messages page of Lakeville This Week Life & Times as it has been in previous years. Mr. Sucansky indicated he would explore doing a special assignment on manufacturing, along with several other options. Staff will be meeting with Mr. Sucansky during the week of September 24-28 to further discuss options. Staff has also been researching statistics and other information which can be incorporated into articles for Airlake News, Lakeville This Week Life & Times, and the Sun Current. Page 7 of 8 G:\AFlad\Econdev projects\EDC\2001 mtgs\90September1092501 minutes.doc Economic Development Commission Meeting Minutes September 25, 2001 6. MN 6th Annual Development Conference, October 25-26, 2001 City Administrator Erickson indicated that the City Council continues to be interested in educating Commissioners on relevant Economic Development topics, and therefore is providing an opportunity for Commissioners to attend the 6th Annual Development Conference to be held October 25-26, 2001. Concurrent sessions on Workforce Development, Technology, Housing and Finance will be held which attendees can choose to participate in. These topics are particularly relevant to the recent efforts of the Lakeville EDC. Comm. Matatsosky and Comm. Brantly indicated they would attend one day. Ms. Flad will arrange for registration and payment. 7. Adjourn. The meeting was adjourned at 8:46 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R.T. Brantly, Secretary Page 8 of 8 G:\AFIad\Econdev projectslEDC\2001mtgs\90September\092501 minutes.doc MEMORANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator Dennis Feller, Finance Director David Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator"7~;~'-- DATE:October 18, 2001 RE: 2000-2001 Strategic Plan Issue: Incentives Subcommittee Attached is the final draft of Springsted's Incentive Tools document which was reviewed by the Incentives Subcommittee on September 18, 2001. After reviewing the document, the Incentives Subcommittee determined that the following five. incentive tools merit further discussion by the full EDC. 1. Tax Increment Financing (Incentive Tools - p.4-10, also see attached Tax Increment Report) 2. Tax Abatement (Incentive Tools - p. 11, also see attached Dakota County Tax Abatement Policy) 3. Industrial Development Revenue Bonds (Incentive Tools - p. 21) 4. DTED's Redevelopment Grant (Incentive Tools - p. 17) 5. DTED's MN Investment Fund (Incentive Tools - p. 19) Finance Director Dennis Feller will be present at the October 23, 2001 EDC meeting to discuss how legislative changes to TIF will impact the City of Lakeville. Paul Stienman and Mikaela Huot of Sprinsted will be present to discuss the next steps involved in creating policies for Tax Abatement, IDRB's, Redevelopment Grants and MIF. Springsted wilt also be providing additional information on an HRA Special Levy and an EDA Special Levy that could potentially be used to generate funds to address economic development projects in the City. t. To; Economic Development Comm' 'on From: Dennis Feller, Finance Director Date: October 1, 2001 Re: 2001 Tax Increment Report The Omnibus Tax bill approved by the Legislature reduced property taxes paid by most property types. The reduction is caused by changes in class rates and by the removal of the state-mandated school financing from thelocal property tax levy. While a portion. of the local school levy is replaced by a state-wide levy on commercial and industrial property, the state assumption of the general education property tax levy is not captured as tax increment. The estimated fund balances in the tax increment funds is as follows. FINANCE DEPARTMENT Estimated fund balances Debt Service Funds Ca ital Pro'ects 1992 D 1995 C 1998A 1999 B Fairfield Fairfield Senior Business Business DiHed Southfork TIF 9 TIF 16 YEAR Center Campus Campus Yokes Apartments Argonne Alcorn` 2002 (9,430) 174,983 2,143 67,666 189,353 .113,365 14,375 2003. (19,735) 100,583 4,064 53,541 141,165 131,969 2004. (34,440) 30,365 6,019 35,365 93,083 150,573 2005 (28,377) (45,542) 8,005 18,470 40,497 169,177 2006 (22,133) (131,688) 10,018 (2,255) (16,092) 187,781 2007 .(15,701) (222,439). 12,054 (21,470) (71,168) 206,385 2008 (9,076) (322,242.) 14,109 (39,129) (129,379) 224,989 2009 (2,252) (425,308) 16,183 (60,337) (190,185) 243,593 2010 4,776 (525,977) 18,276 (84,896) (253,014) 262,197 2011. 12,015 (628,707) 20,388 (107,450) (317,371) 280,801 2012 (727,772) 22,521 (133,091.) (387,641) 299,405 2013 (807,485) 24,681 (161,606) (457,975) 318,009 2014 (907,686) 26,868 (192,777) (532,676) 318,009 2015 (29,939) 2016 (93,623) 2017 (153,584) 2018 (219, 501) 2019 (285,648) 2020 (351,398) 2021 (421,240) The tax increment revenue projections utilized to derive the estimated fund balances are based on tax capacity rates which are estimated until such time as the County Auditor completes its calculation of the 2002 tax capacity rates. Future TIF revenues will be affected by changes in market values, state aid for education, school bond referendums, and other factors. The Legislature recognized that the Omnibus Tax Law would adversely affect tax increment financing funds. As such they created three possible alternatives to resolve financial shortfalls due to the enactment of the tax law . The alternatives include (a) Pooling (b) Special Deficit Authority and (c) Tax Increment Grants. Pooling. The tax law authorizes the use of increment from districts with available revenues to pay the deficiencies in other districts, without regard to .laws that would otherwise prohibit pooling. The maximum amount of additional pooling authorized may not exceed the lesser of (1) prof ected deficit for the receiving TIF district for the current year or (2) the reduction in the district's TIF property taxes for the for the previous taxes payable for year due to the property tax classification provision 2 changes. Request for pooling must be submitted before September 1 of each year; the Department of Revenue will grant (deny) approval in November of each year. Special deficit authority. Minnesota Statute 469.1782, subdivision 1(2) states the special deficit authority is available "only after the municipality has exhausted pooling and transfers of increment did not eliminate the insufficiencies". If a deficit incurs after pooling, the taxing authority has "special deficit authority" whereby it can (a) "unfreeze" the original local tax rate for the district and (b) change the fiscal disparities election so that the contribution is made from outside the district. At this point in time it appears that unfreezing the original local tax rate will have very insignificant impact on tax increment deficits. The only districts affected by the fiscal disparity election are TIF District No. 10 (Fairfield Business Park) and TIF District No. 15 (Di Hed Yokes). Taking the fiscal disparities outside the district indirectly results in an increased tax burden to Lakeville property owners. The Tax Increment Plans must be modified in order to utilize the Special deficit authority provisions. The plan modifications require a public hearing but do not require the permission of-the Minnesota Department of Revenue. The Tax Increment Funds were recalculated assuming: a) No Legislative changes (in the next 20 years) to property tax laws. b) Tax increment revenues increase approximately 3.25% per year due to any combination of factors including (but not limited to) increases in the assessors estimated market values, building construction or improvements, voter approval of school bond referendum or reductions in state aid for property tax relief. c} Pooling for the 1992 D Tax Increment Bonds (Senior Center) is initiated in 2002 for taxes payable 2003. d) Tax Increment Financing District #9 (Argonne Farms} fund balances are expended for right of way in 2004 or prior years. Thereafter, all increments from the district are subject to pooling. e) Pooling for the 1995 C Tax increment Bonds (Fairfield Business Campus) is initiated in 2005. f) The City exercises its Special Deficit Authority in 2007 for taxes payable 2008 by taking the fiscal disparities citywide for TIF district #10 (Fairfield Business Campus) and TIF district #17 Di Hed Yokes. 3 Application of the aforementioned assumptions results in the following estimated fund balances. Estimated fund balances Debt Service Funds Ca ital Pro'ects 1992 D 1995 C 1998A 1999 B Fairfield Fairfield Senior Business Business DiHed Southfork TIF 9 TIF 16 YEAR Center Campus Campus Yokes Apartments Argonne Alcorn Total 2002 (9,430) 174,983 2,143 67,666 189,353 .113,365 -0 538,080 2003 (19,504) 100,583 4,064 54,813 147,943 132,574. 420,472 2004 (33,734) .37,994 6,019 39,259 113,839 0 163,378 2005 (26,935) (22,177) 28,482 26,422 82,878 0 88,670 2006 (19,679) (83,983) 52,253 11,277 56,022 0 15,889 2007 (11,943) (141,266) 77,386 (747) 39,274 0 (37,296) 2008 (3,704) (164,873) 103,941 (3,817) 28,493 0 (39,960) 2009 5,061 (179,430) 131,982 (8,273) 24,753 0 (25,907) 2010 14,378 (178,582) 161,577 (13,795) 29,179 0 12,758 2011 0 (166,062) 216,498 (14,902) 42,850 0 78,385 2012 (135,382) 250,130 (16,552) 61,987 0 160,182 2013 (70,064) 285,566 (18,396) 93,074 0 290,181 2014 0 41,338 0 0 0 41,338 2015 136,137 136,137 2016 241,150 241,150 2017 367,897 367,897 2018 507,659 507,659 2019 667,168 667,168 2020 848,098 848,098 2021 1,047,053 1,047,053 2022 788,097 788,097 The revised calculations do not take into consideration the favorable impacts of refinancing the General Obligation Tax Increment Bonds of 1995 C and 1998 A (Fairfield Business Campus). The bonds are callable in 2006 and 2008, respectively. If the tax increment revenues are not sufficient, application for a tax increment grant might be an alternative in future years. Grants. TIF grants are available to authorities that have citywide deficits. It is available only after pooling and special deficit authority has been used. The amount of the grant is as follows:. The amount due during the current year to pay all pre- existing obligations of the City (but excluding any payments to pay-as-you-go contract holders) less the sum of the following: a) Municipality's total tax increments received from all districts in the giving year. b) The tax increment fund balance in all districts. 4 4 ~ . c) State-aid reductions and local matching payments that would have applied to any district if Section 273.1399 had not been repealed; and d) Funds on hand that are not considered tax increment by general law but would be considered tax increment if the definition enacted in 1997 applied regardless of the effective date of that law. The actual grant may not exceed the deficit caused by the tax bill. There are a significant number of variables affecting future tax increment revenues. In addition, it is anticipated that Legislative initiatives in the coming year will hopefully clarify the technical issues related to tax increment deficit financing. The City staff, fiscal consultant and bond attorney will continue to monitor the property values, projected future tax increment revenues and tax increment laws /regulations to maximize the City's investment in tax increment projects. 5 4 Attachment 1 Dakota County Economic Development Tax Abatement Policy POLICY STATEMENT The Dakota County Board of Commissioners will consider granting economic development or redevelopment abatements for properties eligible under M5 469.1812 to 469.1815. The Dakota County Board of Commissioners will consider granting economic development or redevelopment abatements for the following purposes: • Provide employment opportunities within the political subdivision. Dakota County includes in this category creation or preservation_ofprivate sector livable wage jobs. • Help redevelop or renew blighted area. Dakota County includes in this category Brownfield remediation and environmental cleanup. • Help to provide access for services for residents of the political subdivision. Dakota County includes in this category creation of affordable rental and owner occupied housing. • Finance nr provide public infrastructure. Dakota County includes in this category public infrastructure investment for government. entities. DEFINITIONS Affordable Rental Housing: The rental housing project must meet all of the requirements for a low income housing credit under section 142(d} of the Internal Revenue Codes, regardless of whether the project actually receives housing credit. Brownfietds: Abandoned, idled or under-used industrial or commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. Eligible Properties: Commercial and industrial property and residential property (including single family housing) that meets required conditions as outlined in MS 469.1813, Sub Div. 1. Livable Wage: Living wage levels that are equal to what afull-year, full time worker would need to earn to support a family of four at the poverty line ($17,690 or less as of year 2000). Law Income Rental Housing: Housing to be rented by households whose income is at or below 50% of the area median income. February 12, 2001 i SOURCE The authority for establishing this policy resides in Minnesota Statutes 469.1812 to 469.1815 BACKGROUND The Dakota County Board is authorized to grant an abatement of taxes imposed on a parcel of property. Under this statute the taxes are not reduced. The taxes are paid in the standard manner and then I) rebated to the property owner, 2) reallocated to pay bondholders, 3) reallocated to pay for public infrastructure, or 4) repaid to the property owner with the agreement that they will be paid in the future. Property that is included in a Tax Increment Finance Plan may not receive an economic tax abatement. Cities, townships and school districts may also grant economic tax abatements on a parcel for which the county grants it. The decision of each governmental unit does not preclude or restrict the decision of any other unit. LIMITATIONS By law Economic Development abatements have the following limitations: • .The County Board must find that the expected benefits to the county equal or exceed the amount of county taxes subject to the abatement agreement. • The County Board will limit approved abatements to one percent of the county tax levy for that year. • The 10-year abatement value is granted on the land and building improvements. This per parcel limitation shall not be applicable to county owned properties. • No abatement will be paid if property tax on the parcel is delinquent on the first business day, following the year when actual taxes were due. Although the county may issue bonds to fund the approved abatement, the county declines to issue bonds for this purpose unless the bonds relate to county initiated projects. EVALUATION STANDARDS The Dakota County Board may approve tax abatements fora specific project for economic development purposes using the following criteria: I. The extent to which the plan is compliant with Dakota County Abatement Policy. 2. The extent to which the public's interest is served. 3: The extent to which new employment opportunities provide benefits and livable wages for employees. 4. The extent to which the project creates affordable rental and owner occupied housing. February 12, 2041 5. The extent to which the project limits costs for road construction, traffic control, law enforcement, human services and other budgetary items. b. The extent that other local governments support the project, including but not linuted to tax abatements on the subject property. 7. The extent to which other public assistance is provided to the project. State law prohibits tax abatement under this authority if the property is located in a tax increment financing district. PROCEDURES A written application to the County Board must be made to request approval of the tax abatement of the county levy. The application will include the following: l . A general description of the project, including sizes and types of building, business type and expected use.. 2. A copy of a city, town, or school board position paper regarding the abatement proposal. 3. Requests, if applicable, for County participation in the project. 4. A map or site plan showing the boundary of the project and the property identification number(s) and legal description(s) of the parcels subject to the abatement. 5. Statements identifying the public benefits of the proposal. 6. Statements relating to new traffc generated, including parking capacity, projected vehicle counts, traffic flow and pedestrian safety. 7. The total amount and type of tax abatement requested and the amount and duration of the annual abatement payments. 8. A $79 per hour fee for administrative service. February 12, 2001 {)49 Attachment 2 Economic Uevclopment Abatement Options The following table presents the recommended authority in each area of discretion: Category Allowed by law Proposed 1) Purposes for which an At least one cif the following is required: abatement will be granted. 3. Increase or preserve the tax base; a. Not proposed h. Provide employment opportunities within thcpolitical subdivision; b_ Proposed c. Provide or help to acquire or construct public facilities; c. Not Proposed d. Help redevelop or renew blighted areas; d. Proposed e. Help to pro~~idc access for services For residents of the political subdivision; e. Proposed. Sen~ices will he in the form of affordable owner occupied or rental housing. f. Finance or provide public infcastructure; or f. Proposed g. Phase in a property tax increase for a parcel resulting from a one-year increase of g. Not Propeised 50% or more in the estimated market value of the parcel, other than the inc,Tease in estimated market value attributable to improvements made to the parcel. 2) Conditions under. which an a. A specific atnount per year, All will be considered. abatetttent will be granted. b. A specific total amount covering all years included in the abatement agnctnent; c. The increase in property taxes resulting from improvement of the property; d. The increase in property taxes resulting from increases in market value or net tax cap;u:ity of the property; e_ The pe+tally and interest that would otherwise he due on property taxes that are deferred; f. Or in any other manner the County determines is appropriate. 3) Typc of abatement to he a. Rebate of tax payment to the property owner All will be cttnsidc~rcd. granted. b. Reallocation of tax revenue to repay bond c. Reallocation of tax revenue to pay for public infiastructure (in lieu of a special assessment) d. Deferment of property taxes with waiver of penalties and interest. 4) Dollar limitations on wtal a. $lOU,UUU or, One percent of the cowtty tax levy fur the abateutents granted. b. Five percent of the county tax levy for the year, year. ~r Q ATTACHMENT 3 TAX ABATEMENT POLICY COMPARISON BY COUN_ TY Hennepin Washington _ _ Anoka toff Dakota Chisago Restrictions ' - rown el eanup - ncrease or preserve tax ase ~ + -Creation or Preservation of -Job Relentionl reation - rovitle Access to Services for -Increase/Preserve Tax ~ -Affordable Rental Housing -Employment opportunities in the Private Sector Livable Wage -Living Wages Residents Including Affordable Base -County Community Work county Jobs -Job Training Housing -Create/Retain Jobs -Underdeveloped Cty Property -Provide, help acquire ar -Redevelopment or Renewal of -Public Infrastructure Investment -Creation or Preservaton of -Provide or Help Acquire or -Transit Development construct public facilities Blighted Areas -Stable Communities Private Sector Livable Wage Construct Public Facilities i -Historic Preservation -Redeveloplrenew blighted areas -RedevelopmenUBlight Jobs -Develop/Renew Blight -Provide access to services for i -Redevelopment or Renewal of Areas county residents Blighted Areas; Brow~eld -Provide Access to Services -Fnance or provide public Cleanup -Retain Businesses at Risk infrastructure -Public fnfraslructure of Relocation Out Of County Investment LlmitatloflH ~ -Total abatements approved in -Must be consistent wit -i not olhenv+se speci se - aunty wi only consi er i t e - o a alemen paid, i taxes are -Must comply with !any year cannot exceed 1 °,6 of County's comprehensive plan abatement in effect for B years City/Twp has given approval not paid on time Comprehensive Plan and that year's levy -Municipality may receive up to -County will pay the abatement -Target goals must be identified -Resolution must sperafy nature Zoning Ordinances -Total abatement for a Specific 5% of county's levy based on to the property owner or will and recipient must report on 8 extent of benefit to public -Developer must retain parcel or associated parcels is city's tax capacity as long as the retain the abatement to pay progress -Abatement in effect for 10 ownership long enough to $3M for full term of abatement countywide total abatement does public infrastructure costs -IF job relen6on is the objective, years only complete it, establish -No abatement is paid if taxes not exceed 2% -Resolution must specify nature the imminent loss Of jobs must -County will consider only if management 6 initiate are not paid in atimely -Municipality must agree to not & extent of public benefit be demonstrated Twp/City has taken a position repayment manner, include property in a TtF district -Total abatements will not -Total abatement shall not -Developer must commit to -Applicant will pay fees that exceed 5°,b of annual levy exceed 1°/.of annual levy operation For at least 5 years cover all administrative costs -Granted on value of building -Abatemerts may not be -Resolution of support from ~ -FD is deducted from tax improvements; land value is not granted if the property is Ipcated City/Twp required capacity to compute amount abated in a TIF distract -May limit amount to the -Must not exceed 5% of tax levy -Cannot be located in an existing increase of property tax or previous TIF District resulting from improvement Decision ounty oard ounly Board ounly Board i approved by County Board akota County Boar County Board AUthOflt~f Intergovernmental Committee Implementation axation to Taxation t Taxation [a aunty Au itor reasurer- u itor oar Comments - on s wi on y e issue i it - ounty oar must in at the - ounty wi I add to its levy -Require a minimum deposit of per hour fee or -Additional priority is given ii is a County related project. benefits to the County at least amount the total estimated levy $2,500 to cover Administrative administrative services High quality jobs are equal the costs amount of alt current year costs created -Abatements will not be granted economic development grants - -July 1 deadline and must have Project employees a it property is within a TIF district Stated concern that di2ct Public hearing review majority of government involvement in professianallskilled labor economic development Business is at risk of I abatements may shift a leaving the State disproportionate share of tax Project is constructed of burden to other properties block, concrete, brick which i contain dewrative accessory materials 'C ATTACHMENT 4 COMPARISION -ECONOMIC ABATEMENT and TAX INCREMENT FINANCING ABATEMENT TIF Who May Grant County, City, Town, Schooi District -Jointly or individually City, Town, Housing and Redevelopment Authority, Redevelopment Agencies (both city 8 county) and Port Authorities. School districts have no authority to create. Decision Criteria That Must 1. Benefits of the abatement must be at least equal to Municipality must, among other things, find the Be Used To Grant costs to the political subdivision. development would not occur "but-for" tax 2. Abatement is in the public interest because it will do increment at least one of the following: • Increase or preserve tax base. , • Provide employment opportunities. • Help acquire or construct public facilities. • Redevelop or renew blighted areas. • Provide access to services for residents. • Finance or provide public infrastructure. • Phase in a property tax increase resulting from an increase of 50% or more in 1 year in the estimated market value. Approval Process Jurisdiction must pass a resolution that includes specific • Requires the creation of a TIF Plan, creation of terms of the abatement and has a specific statement as to a map, and notice tv the affected county and the nature and extent of the public benefits expected to school district. result from the abatement. • Requires a public notice and public hearing. Jurisdiction must hold a public hearing. Duration Maximum of 10 years if city (town), county and school Depending on type may have duration ranging district participate. If one or more decline, the maximum is from 9 to 25 years. (Payments can be received for 15 years. a maximum number of 26 years). Restrictions Parcel may not be in a TIF district. • Tax increment must be spent in accordance • May not exceed the greater of (1) five percent of the with the approved T!F plan. current levy by the political subdivision or (2) $100,000 in any given year. • If the abatement period has expired, another cannot be grantedon the parcel for 8 years. • If the political subdivision retains the abatement rather than paying it out, it must use the money to pay public infrastructure costs. C G"t ABATEMENT TIF Modification . The political subdivision may include in their resolution • May be modified in any year but modifications that the abatement cannot be changed or modified. are subject to the same public notice and hearing • If there is no statement, the political subdivision may approval requirements as the original district. review and modify every second ear after approval Reporting Requirements Abatement is a business subsidy governed by MS Annual reports for each TIF district are required 116J.993-116J995. to the Office of the State Auditor. • There are no current reporting requirements specifically for abatements although is may be subject to reporting requirements for business subsidies. Important Issues Political subdivision must add to its levy for the current year • While abatement cannot be granted on a parcel the total estimated amount of all abatements that have been in a TIF district, the city may establish a TIF granted. district and at the same time grant an abatement to begin after the TIF district is decertified. • Taxes captured on the incremental tax capacity value of improvements within a TIF district are distributed to the district rather than to the county, city and schools. County Budget Impact Must be included as an expense in the County Budget.. Not included in the County Budget. County Levy Impact County is required to levy the abatement amount in the None following year's levy. Citizen's Property Tax The cost of the abatement is spread to all taxpayers in the The cost is spread to all taxpayers through the Impact county through the levy adjustment. property tax capacity value adjustment. Advantages • Less Restrictive -There are fewer restrictions on Greater potential funding -Captures taxes how and where abatement proceeds may be used. from all taxing jurisdictions and may have up to • Reporting requirement -There are no specific a 25 year duration and 26 years of TI abatement reporting requirements. payments. • Less Costly -There are fewer requirements upfront, Don't need approval from other taxing districts. which result in less cast. C Cl1 CA: Supporting Documents: Previous Board Action(s):. Attachment 1 - -Proposed Economic Development Tax Abatement Policy - ; Attachment 2 -Economic Development Tax Abatement Options - , Attachment 3 -Tax Abatement Policy Comparison by County - ; Attachment 4 -.Comparison -Economic Development Abatements - TIF - ; RESOLUTION Adoption of Economic Development Tax Abatement Policy WHEREAS, the 1997 Minnesota Statelegislature authorized cities, townships, school districts, and counties to abate ail or part of their respective portions of a parcel's property tax as an incentive to economic development, provided that the project meets established criteria; and WHEREAS, the Dakota County Board of Commissioners recognizes that granting an economic development tax abatement may shift the tax burden and, therefore, will grant economic development tax abatements only in circumstances where it can be demonstrated that the nature and extent of the development will benefit the public; and WHEREAS, the Dakota County Board of Commissioners will consider economic development tax abatement for only the following purposes: (1) providing employment opportunities, (2) helping redevelop or renew a blighted area, (3) financing public infrastructure, and (4) providing access to services for residents including affordable housing. NOW, THEREFORE BE IT RESOLVED, That the Dakota County. Board of Commissioners hereby adopts the Dakota County Economic Development Tax Abatement Policy, as presented to the.Administration/Finance/Policy Committee of the Whole on June 5, 2001. ministrator's Comments: Reviewed by (if required): Recommend Action ~ County Attorney's Office Do Not Recommend Action ? Financial Services ? Reviewed-No Recommendation ? Risk Management ? Reviewed-Information Only ? Employee Relations miffed at Co is 'one a est ? Information Technology 0 County Administrator 05131!2001 8:45 AM Page 2 q:Vbagroupirbaeleclafp6-5-01 cl.doc Agenda Page NO. TO: Econorr~io Development Commissioners CC: Robert Erickson, City Administrator David Olson, Cornrnunity & Economic Development ©ir~~tor FR: Ann Fled, Economic Development Goordinat-==--- DATE:Octot~r 17, 200'1 RE: 2002-20x4 Strategic Plan: Work Plans. At Sep^nt~er's EDC meeting, Commissioners reviewed the priority ranking of the Cruel Issues. Commissioners concurred that the Work Plans wrould be deveiap~d for the three issues listed below. Commissioners then discussed and ciarifi~d weir gc~~ts for the three Critical issues above. Tt~t~ C?~l l~sues 1. Inform and educate residents on benefits of C/Chase to gain community support-and appreciation fior business growth. 2. Finial planning for community -encourage community partners - s~taoi~, .city, county, state, etc. to provide input to create basic financial models that can be Buser! to visualize and measure potential threats, outcomes, and overaff impacts of catu efforts to improve fir~nciai position of city in the future. ` 3. Encourage investigation ofi a#! potent fief upgrade opportunities in critical "business infrastructure" elements - phor~, data, and other infrastructure, to promote positive outcomes for long term. Staff met-with EDC Chair Bob Vogel and developed proposed Work Plans (see attached.} It is proposed that the -EDC as a whole will address the first Work Plan (Educ~t~ and Inform Residents), while the s®cond and third Work Plans will be addressed by forming subcommittees. Commissioners are requested to provid® input into these Work Plans. Once approved by the ADC, the Work Plans will be .incorporated into the final 2002-2004 Strategic Pian document and presented to the City Council in November. STRATETGIC WORK PLANS 2002-2003 _ F 7 - j s j a f[ ~~{jj.~~. 1 ~ ~ s ~ } S,f r rf i i/ O! f ice. • ` i 7r 4 y ~ '~i$ ~ _ y ~ ~ _ To inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. Why educaite and` infarrn`"residents? • So residents can learn to accept some things they don't want for the good of the "whole." • Show residents the benefits (fiscal) that business provides to them. • Building "partnership" mentality between residents & businesses. • Show residents why business growth is good for them. • As residents see tax impact between business & resident levels, have them continue to appreciate the benefits of business base. • Show wide range of benefits (beyond fiscal) that businesses provide a community. • Have residents that are informed about how the City Budget is provided for -use tangible examples (income flows.) Preliminary-Work Plan:, Action Ste Res onsibilit Bud et Outcome Timeline 1. Define tangible benefits and/or value of EDC commercial/industrial development for Lakeville's residential, business, and overnmental sectors • Identify target audience (Who we are trying to communicate to, what is their understanding, what are their needs? • Identif messa a Research information. 2. "Sell" the benefits of commercial/industrial development to target markets • Identify communications channels for each tar et audience • Develop and capitalize on partnerships to communicate messa e GOAL ~ : _ ~~s K ` - ~ ~ ~}r~Y t Financial planning f or community -encourage community partners -schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. Why Financial Parf~er~ng? • Communication system (method) to have all related entities working toward common goals. • Define common goals. • Build understanding between business & education system on each other's needs and goals. • Share information so all entities understand each other's fiscal needs. • Bridge culture differences between business-city-school-county. • Build understanding on how tax incentives can benefit everyone -even those who think they "loose." • Find ways to involve public (residents, businesses) in providing community (education,- etc) needs. • Define Common benefits of school, city business, county (synergy & what they provide each other). • Find ways to have all entities utilize common benefits to help enhance each other. • Clearly communicate tax impact of business. Preliminary Work-Plan: Action Steps Responsibility Bud et Outcome Timeline 1. Define Goals of Cit ,School and Count Subcommittee a. Determine Priorities of City, School District, Count ' b. Determine Common Goals of City, School District, and Count 2. Conduct acost-benefit analysis for the goals defined 3. Develop a plan to achieve the goal(s) identified 4. Implement plan ~ ` ~ ~ ~ w ~ ~ -<< GOAL # ~ N s Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. Why Concentrate on, Potential Infrastructure.. Upgrades? • Anticipate future needs so when business needs them they are ready. • Be proactive on technology rather than reactive. • Capture the wealth of existing resources (fiber, etc.) as quickly as possible. • Properly market our needs to encourage providers to make their investments here. • Method to anticipate any infrastructure that does not yet exist but will be part of our community. • Airlake Airport used to community's advantage. Preliminary-;Work Plan Action Ste s Res onsibilit Bud et Outcome Timeline 1. Identify target audience(s) - (Who do we want to Subcommittee provide infrastructure for -national commercial retailers, regional/corporate headquarters, certain t es of industr ,etc? 2. Determine what type(s) of infrastructure our tar eted audiences need. 3. Develop a plan for encouraging those types of infrastructure developments in Lakeville once identified. V MEM{JRANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator David Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator'` DATEOctober 17, 2001 RE: Strategic. Plan Item: Labor Force Subcommittee The HR Committee of the Chamber has received additional information from NationJobs, the organization they have chosen to partner with for a JobslnLakeville web site.. fVationJobs has a long partnership with the national .chamber of Commerce, and this partnership is launching a new pricing strategy,.: called "Chamber Responds" in light of he country's recent tragedy and economic situation. The"Chamber Responds" initiative suspends the traditional pricing for locale: Chambers of Commerce ($19,000) to create a locaf;page on NationJobs. Instead, the new initiative offers Chambers the opportunity to launch local pages on the NationJobs site and allows the Chamber to offer :every company in Lakeville the opportunity to list job openings. on the site for the total community ' cost of iwo individual company memberships. The reduced cost may make it financially feasible for the JobslnLakeville. program to be aunched in spite of the hesitancy of companies to spend money on recruitment tools at this time. Ryt- Wayand Menasha have indicated that they will subscribe o NationJobs. This may- meet the .requirement: of the new "Chamber Responds" iritiative and allow the JobslnLakeville program to proceed:. Todd Bomhauser of the. Lakeville Area Chamber. of commerce and. Gary Tholkes Chair: of the HR Committee of the Chamber, will be exploring the "Chamber Responds" option further. Mr. Bornhauser will be present at the EDC meeting to<discuss the HR Committee's progress in`exploring he "Chamber Responds" initiative and the: interest in .proceeding with the JobslnLakeville project at this time. _ ~ Es b . ~ . 1 _ ~ : c, : as, _ ,_:r,~,~~t~~~ rAht, l7Yi b'L `T~~~ ~harnberRes~onds r,: 71 r', s ? ~ uPr a , r - I ~ i~~if~+' :4>w ~ tip y~~' ;,+i.;::, a~ A New Initiative to Help Your Community. People have Iost their jobs as result of the In order to help immediately, we're giving September 11th tragedy; more may lase our chanabexs the option to suspend them over the corning months; and yet standard pricing. many companies who have job openings 'l'he "Chambex Responds" initiative is one aren't promoting them. Smaller single, discounted .fee and covers every companies -are hesitant to spend money employer or chamber member in your on advertising, and spending decisions at community, For example, every company larger employers have bagged down. as in a community tivith a population under they wait tQ see ghat -the coming months 50,0~~ could participate for what it would will bring. cast just t~~ro erraployeis under our standard To address this dowr~vvard spiral now, pricing. we've introduced a temporary nine- The roll-out requires nU.nimal chamber month program to assist employers and effort: 'ust hel us resent the conce t to a displaced employees.. the °`G_ hamberr few key s~nsc>rsp host a kick ff to Responds" Ynitiative, promote th.~: initiative and communicate '1<'he concept xs sLnple: help every through your existizag channels. We do the company in your community to list their rest. job openings on a local web site, plus We are ready and vLilling to work with you feature links to volunteer and training to help mininuze the effects of this national opportunities. tragedy. To team more, Yixit "Chamber Responds"Initiative www.nationiob.comlusrxogram. For mare information, contact www.nationjob.com at 1-88&256.1741. f ~et~or~" www.nationjob.com 1-ssr3-256-i 7~~ Page 1 of 1 Todd Bornhauser From: <community@nationjob.com> To: <community@nationjob.com> Sent: Thursday, October 11, 2001 3:04 Subject: Chamber Responds The Chamber Responds To keep you updated, this email is being sent to all of our chamber partners. NationJob took action on September 12th to assist those employees, employers and government agencies most directly affected by the terrorist attacks. This new initiative has a nationwide focus. Depending upon the needs of your specific community, this initiative may or may not be of interest. People have lost their jobs as result of the September 11th tragedy; more may lose them over the coming months; and yet many companies who have job openings aren't promoting them. Smaller companies are hesitant to spend money on advertising and spending decisions at larger employers have bogged- down as they wait to see what the coming months will bring. To address this downward spiral now, we've introduced a temporary nine-month initiative to assist employers and displaced employees: the "Chamber Responds". The roll-out requires minimal chamber effort: just help us present the concept to a few key sponsors; host akick-off to promote the initiative and communicate through your existing channels. We do the rest. We are ready and willing to work with you to help minimize the effects of this national tragedy. To learn more, visit "Chamber Responds" Initiative http;//www.nationjob.com/usprogram. For more information, contact www_.nationjob,com at 1-888-256-1741. 10/12/01 .MEMORANDUM TO: Economic Development Commissioners CC: Robert Erickson, City Administrator David Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinate' DATE:October 17, 2001 RE: Manufacturing & Technology Month A% the vciober i 200~i City Council meeting, the Council proclaimed October 22-November 23 as Manufacturing & Technology Month in Lakeville (see attached Proclamation.) This marks the eighth annual recognition of the contributions manufacturers bring to the Lakeville community. A copy of the Proclamation will be printed on the Messages page of the Lakeville This Week Life and Times Newspaper. Each week during manufacturing month, a fact or figure about Lakeville's manufacturers will be included on the Messages page. A Recognition Luncheon is also planned for November 8, 2001 at 11:30 at Brackett's Crossing Country Club. Mr. Ken Stitz of Minnesota Waste Wise will speak about how manufacturers can capitalize on their by-products, and City staff will present "In Pursuit of a High-Tech Future: The City of Lakeville" as was presented to the EDC in September. Mayor Johnson will present each manufacturer in attendance with a copy of the Proclamation along with a certificate of appreciation from Governor Ventura. Pmclama~"on forMANUFACl"URING AND TECHNOL OGYMONTH 2001 Whereas: Manufactuuing has the second largest total payroll ofany business sectorin Minnesota, providing $19 billion in 1999 wages and employing over4,000people in Lakeville alone, and - Whereas: Manufacturing technologyproduces $31.3 billion forthe state economy and is the third largest single share (18.1 of ourgross state product, and Whereas: Manufacturing technology exports brought nearly $10.2 billion into the Minnesota economyin 2000, and Whereas: Manufacturing technologyprovides high skill, high wage jobs which significantly contribute to Minnesota's high standard oFliving and economic vitality; and Whereas: Manufacturing contributed nearly $251 million incorporate income taxes in Minnesota, more than any other business sector, and nearly one-third oftotal corporate income taxes in 1998: Therefore be itresolved that the City ofLakeville does herebypubliclyexpress its appreciation to all Lakeville area manufacturers and theiremployees for the contributions theymake to ourcommunityand state; and thatl, Mayorof Lakeville, do herebyproclaim the month ofOctober22, 2001 through November23, 2001 to be Manufacturing and TechnologyMonth mLakeville, Minnesota. In Witness Whereof, I ha ve hereunto set my hand and caused the Great Seal of the City ofLakeville Minnesota to be axed at the City Office this Fifteenth day of October, Two Thousand and One. Ro rt D. Johnson, Mayor j DAVID L OLSON 1424 Fifth,Avemue» Rochester, I1+IIV 55901 (507)289-2060 EDjL~ATION• 1988-1992 Mankato State IInirveysity, Mankatto, Minnesota Master of Arts. December 1992 Major is Urban and Regional. Studies. Emphasis in Management .1977.1981 St, Ciond state Uniivenity, St. Cloud, hfianesota Bachelor. of Ans, May 1981 Major is Local and Urban Affairs Emphasis m Public Administration, Planning, Housing 1979-1980 CoMrado State.Universitt, Fott Collins, toicmdo One year of course work in the area of Urban Studies ' 19741977 Adri:a Yuh~lie High Sc4oo1, Adrian.llKnnesota, WORK EXPERIENCE• Ap~ri11997-Present Coamunity Devdopaseau Director Farmington Community Development Depattmem, Farmington„.Minnesota Responsible for coordination and management of the Divisors of~evelnpment S~ectdcta, Pla:uiiag and.: Zoning and Building lnspeetions within the Community Development Department and serve as the Executive Director ofthe City fCItA: - Specific duties include administer the City_plaaning program including updating cad implementing the Comprehensive Plan and Zoning Ordinance and -.Map; review subdivision and development proposals to determine' compliance with the City Comprtltensive Plan and City devrloptnent goals and standards, supencise. the.b~uilding inspection function to insure timely and consistent rnforcement of the Uniform Building Code; review proposed r~welopmem and a:ononuc development proposals .and revommend appropriate financial assistance packages wben appropriate; market IdYtA owaod industrial and redevelopment sites; prepare :and submit .grant applications for various community development Programs; prepare and administer the anm~al Community De~aelopnae~ Btodc Garaat program; rtpcese~ the City-at state. mc~Palitaw and county levels on economic and community development matters; serve as the City liaison. to the local .business community; supemse seven Community Development Departnnent employees and prepare and administer budgets for each division of the Department. July 1987-April i 997 Adtmiaistntivt Assistant City Administrator's Office, Rochester,lldinnesota. Assist in the preparation and review. of items to be considered by the City Council and other Boards and Commissions; conduct assigned research and .administratircertudies; administer and manage special projects; assist in the preparation o>'City Council agendas; assirt and participate is tlu preparation of the Annual Operating Budget. and Capital Improvements Program; prepare feasibility reports on rho financial and economic aspects of economic develapmmt, redevalnpment, and housing projects; formulate; [.and irnpl~ment these types ofCity-assisted development projects; assist in the coordination of various public improvement projects in the Dowtrtown DCVelopmeRtt District, iacltidiog skyways, a pedestrian plaza, and stooascape projects; Oversee administration of the Comnturuty Development Block Gant prog~ assist is the pt+~szasion of other.State and Federal aid applications and grant requtsts. , July 1984June 1987 ll~er . Rocha~r-0Imsted CoumRyPlannin8DePardatiaa. Roc6es~ Mtnaesots. Assist in the administration and enfotcemant of City and County zoning and subdivision ordinances, inehadiag the review of proposed new dev!elopmenta.$oc conoplianoe with the City or County zoning ordinances; review and -analyze ..proposed development applications, indudiag laud use plan amendments, zone requests, oondit~al use .Permits, variances, street sad alley easement vacations, nacres and bounds subdivisions, etc.; priafGamuian to the respectixtPJanniog Commissions,Bnaods.of~ljuatment, City Council, and County Board; review, interpret, and makt roconunendatioas on inning ordinance amendments; inspect .auapeaed .zoning violations, pocpace,aecessar3r zoning violations. factual information m be used in court cases August 1981-Jury 1984 Assistant Plasner ' Austin-Mower County Pluming Deparrrteent end MovNer County 8 Arity, Austin, Minnesota. Responsible to the Planning Diroctor for assisting. is the administration of zoning sad subdivision ordinances for the City of Austin and .Mower County; assist ~a aetiwtiea retatirrg to the development and admirristration of .current and long-range. planning projects and improvement prvgiams; assist in the ~ a~ pcepacaUOn of comprehensive plena, zoning ordinances, sad various grant applications for email sties. Responsible to the Fxeadve Direcmr of'the 1V(ower County Housing Authority for administering M1~A home rehabilitation'graat program; assist in development •and manageraent.of 28 traits of Low Rent Public Housing, and managammx of 68 .units of FmHA and MELFA (Section 8) housing units. MEMBEASAiPS: AND OTHER AGZ1ViTIES: Professional Memberships Member of the Economic Development Association of Minnesota sad cturepoly setvetxi the Legislative Committee. Former member " of the Itnetaational City/Coumy Ma~gement Association former Co-Chai~erso~n of she Coalition of Greater Minnesota Cities Auaexation Sub-Committee. Civic Activities Previously a member of the Rochester Civitan Club and on the Bwrd of Directors of Bear Creek 3esvice3 s mac-for-profit Broup home provider. Leisure Ltterests Skiing, Golf, Boating, Hun6ag, Reading References Provided upon request ~ A Special Supplement to the Minnesota Real Estate Journal ~ ~ and the University of St. Thomas Shenehon Center far i ~ ~ ~ Real Estate Education May 14, 2001 Broadband Through The Sewers: . Building A True Last-Mile Fiber Optic Network by Robert G. Berger prospects are not just looking CityNet for the best location, view or Te%eom~nunieotions, /nG concierge services anymore, but also the best and most n today's high-tech, highly complete connectivity for their 'connected world, there more sophisticated comm- appears to be a fair amount of unications services. confusion when it comes to defining just what is broadband Currently, fiber optic networks communications. From y which deliver broadband property owners to building services run between managers, that confusion is continents and countries, completely understandable, ~ between cities, and as large given the techno-babble, beltway rings encircling cities. acronym-filled world that the Even building owners have telecommunications and _ ~ started the task of running fiber networking industries seems to optic cables in their own love. buildings to answer these demands from their tenants. Whether it's one or one What's missing, however, is the hundred calls each of us has ~ ~ vital link between the been besieged by companies ~ ~ s''-~~ ~ individual building and those offering anything and : larger metro heltway fiber optic everything from wireline to rings. wireless to satellite, and from DSL to fiber optics. Each This gap, which is primarily offers the next generation in And that means the most basic. Today's businesses are so driven by technology from the connectivity inside the question is being overlooked: dependent on high-speed era of Alexander Graham Bell building, but most fail to talk ,just what is true broadband connectivity that a building's and is filled with older and about just what this really connectivity? communication infrastructure slower copper phone lines, is means to your building's can make or break a real estate tenants? Tenants Demand. It! deal. Both existing tenants and o~ean;' Why Fiber? for copper to meet.. So what's and broadband connectivity: the answer? Because of its control, in terms of controlling • When Alexander Graham Bell ability to carry massive which carriers you allow into May 7, 2001 first 'sent a message to his amounts of voice, data and your building; choice, in assistant, Thomas A. Watson, video at .speeds that are providing a variety of in 1876, the power and thousands of times faster. than broadband services for your magnitude of how important it copper,: fiber optics is truly the tenants to choose from; and Broadband from page 1 was to send information over gold standard for true value, your property gains tiny copper wires was quickly broadband communications. from increasing its known as the last-mile. It is this realized. As communication marketability. gap that is the missing link. to a lines grew through cities, In today's world, buildings and true end-to-end, all-optical between cities and across businesses must bridge that last In order to realize these terms, broadband network continents, the telephone mile to stay competitive. your network must complete communication path. And for became one of the eatest the last mile using acarrier- end-user .businesses and ~ neutral deployment residents, it is the last mile that inventions in modern history. Is There A Real Solution to technology, delivering dark is responsible for huge Completing the Last Mile? (unused) fiber that allows a bottlenecks and ma or Fast-forward to today - the J wide array of ISPs, carriers and slowdowns in data, voice and Information Age. Telecomm- All to often, telecom sales other network service video traffic. unications and Internet traffic people knock on a door and providers to compete for your has exponentially increased offer the best. in telecomm- tenants business and allow you Of the 750 000 commercial and will continue to do so. unications and data services, to control access to your real estate buildings throughout Computers send millions of with what they believe are building. bits of data text a hies the U.S., studies show that only. ( ~ P ~ competitive prices to capture around 25,000 have fiber video) every hour of every day. your business. What they don't This "broadband infra- connections directly into the Unfortunately, this traffic still offer -and truthfully can't - is structure" for lack of a better building. The number is even travels along the same legacy an end-to-end all-fiber term -will not only provide worse for the 1.2 million copper lines that were broadband network. the very best in telecomm- residential MTUs in the U.S. developed over a century ago. unications competition for your The result: the information age Simply, a network is only as tenants and prevent The traditional method of comes to a major slowdown strong as its weakest link, detrimental damage to the installing fiber optic cables when it hits the older, last-mile making a last mile solution the building from several carriers re uires tearin u the streets bottleneck. q g p "Holy Grail" of the telecom constructing their own and sidewalks, disrupting industry. Only when the last individual networks, but it will traffic, creating noise and In truth, copper lines were mile is completed with anend- increase the value of the P g g never designed to carry the to-end fiber optic connection building itself. s readin dust, leavin tenants, massive amounts of voice, let city officials, pedestrians and will tenants be able to reap the most of all, property owners alone the huge amount of data promise of the Information A broadband building with last angry and inconvenienced. ..and video. traffic that we're Age, and owners and managers mile connectivity makes you witnessing today. The drive value into their buildings. stand out in the mind of What buildin owners reap broadband demand is too great g y tenants, other owners, and your want and need is away to Dark Fiber Provides Freedom city. When you bridge the last connect their buildings to a mile and provide a complete high-speed network without There are three operable words fiber connection, tenants will the headaches and destruction when it comes to your building Broadband to next page that accompanies traditional fiber optic network construction. Page 12 A Special Insert May 7, 2001 Broadband from previous page .connected by these three CityNet Telecommunications, A true broadband building experience. unprecedented services. But what if one of Inc. has made in-sewer with last-mile connectivity speed, quality and reliability these- utilities could also serve deployment of fiber optics a makes the property owner with their Internet and data in a dual capacity for delivering reality. Through the use of stand out in the mind of services. And they'll be able. to fiber optic cable? Electrical Swiss robotics and tenants, other owners, and the perform new and ever- lines would be difficult due to Viennese sewer city. When you bridge the last expanding functions using true the possible interference of technology, mile and provide a complete broadband communications. electromagnetic waves. Water CityNet is fiber connection, tenants will It's clear, to be in the right lines provide an excellent experience unprecedented location now means to be .conduit, however they are speed, quality and under high pressure and the . _ reliabilit with connected end-to-end last mile _ Y thought of .running fiber optics - t h e i r high-speed fiber optics. through them could generate _ perceived health concerns. . A Smarter Solution ~,r=.~ So how can property owners But what about the sewers? A and managers get anall-optical city's sewer system connects s~` a. ~n connection without tearing up directl into eve buildin '`z~~~' " city streets and sidewalks? Is y g ~ ~ there a way to control without the same pressure or 3, broadband chaos? And are health concerns of water mains. there solutions that allow for In fact, sewers provide an building its last-mile ~ excellent pathway for network - a network that open competition. delivering broadband connects directly into buildings The answer to all of these communications. As one of the - through a city's existing sewer questions is yes. As for a deepest of the utility networks system in anon-intrusive and Internet and data services. delivery system, take a look at in a city, sewers are well safe manner. It is making full And they'll be able to perform your current utilities _ water, protected from backhoes and connectivity a reality by new and ever-expanding electrici other environmental combining the low tech of the functions using true broadband ty, and sewer -and disruptions. Who would have sewers with the high-tech of communications. It's clear that how they connect your .thought that something so fiber optics. being in the "best location" building to their particular beneficial could have come out now means to be full networks. Virtually every of the sewers? Advanta e: Buildin Owners connected over the last-mile by building in the United States is g g y high-speed fiber optics. Growers start a small co-op to share k BY JENNIFER PENH ! by the University of Minnesota's Center Lakeville, Minn. If someone isn't doing ~ for Alternative Plant and Animal Products it, then do it yourself, Renne Soberg j and. the Center for Spirituality and decided. Since the mid 1980s, he had Healing, the nettivork is comprised of been interested in medicinal herbs. But herbalist health-care practitioners and Soberg was surprised. by the lack t medicinal herb growers who meet once a ~ ` month to discuss herb production of information on growing and use. nontraditional varieties. t So he decided to fill in A few Medicinal Herb n~ ~ r°~ the blanks and Network participants saw ~ t i" helped organize the a need to work together ~ Organic Herb to build production ` ~ ' f`~' V S Cooperative two methods and a market ~ arld a halfyears for medicinal herbs.. - ~ ~Li ag«~ They formed the Organic Herb The ca-op's six Cooperative and have ' merttbers ""want to kept in touch through focus on processing meetings, phone and e- an<t getting herbs ~ mail. "We're seeing a lot of a~ read3 far bulk markets," dialog between members," t: Soberg says. Since its Soberg says. ~N beginning, the Organic Herb Cooperative has seen markets opening up and more growers are contacting the co- _ Sl9n up quality people op for information. "It's readiy starting to To encourage medicinal herb growers, the ~^rark,° Soberg says. co-op holds two field days a year. Soberg also speaks at conferences to get the word ` Search for the :out, but the co-op doesnt advertise; 'right' herbs `growth has come mainly by word of i mouth, Soberg says. "We're not interested One challenge is kno~n>ing exactly what to in the number of members so much as grow. "Many grow a variety of herbs but 'the quality. We would like more ~ ~ don't know which to expand on," Soberg ~ established growers." From the original says. The co-op has been. investigating a six, the co-op now numbers 13 growers ~ variety of industries, including cosmetic from Minnesota and Wisconsin. ~ ~ `F" ails and traditional Chinese medicinal herbs. Members have been conducting For more information on the Organic Herb growth trials on such herbs as Chinese Cooperative, call Renne Soberg at (952) mint, white sage, wild yam and 469-2527 or a-mail rensob5147@aol.com. chrysanthemum. They recently studied ~ 201avender varieties for the cosmetic ~ ABOVE: Codonopsis pilosula. ~ ; industry. 'AURI is helping them identify markets AT RIGHT: Herb farmer Renne Soberg for medicinal herbs and discover which ~ examines the quality of Angelica dihurico, ~ , ones can actually be grown in one of many medicinal herbs tested by the Minnesota." says Lisa Gjersvik, AURI's ~ Oggonic Herb Cooperative. The co-op prajc~ct director in Waseca. facilitates information sharing among members and is researching herb processing 'The Organic Herb Cooperative grew out for bulk. markets. of the Medicinal herb NetGVOrk. Founded Page 8 ECONOMIC DEVELOPMENT CONFERENCE SPKIAL INSERT Lakeville kee on rollin 15.2001. I~ g By Sean O. Regan Today, 1ta0 businesses and over 4,300 operations. "We visited with all of the n man} Saturday mornings, a lou~mo_ employees consider Airlake Industrial Park surrounding communities during our Olive e~a.;in gamed "Ci of Lakeville" their home away from home. Steady, stable search," said company President, ~ owth over the ears across a wide cross Casey Mahon. They all offered pulls slowly across Dodd Road on the south ~ y aggressive terms to attract us. We side of Hi hwa 50 "ust outside of down- section vE industries has resulted in more g y ~ than 4,000,000 s uare feet of obtained .TIP financing and assistance town Lakeville., MN. The engine grinds to a q from the city on public improve- . stop. From the engine cab exit, Airlake busi- manufacturing and distribution facilities. merits. They were technically sophis- ness prospects, their spouses and kids, a The diverse and rapidly growing workforce is ticated and helpful to us in navigating golden lab named Casey (after railroad leg- drawn from the metropolitan area as well as end Casey Jones, of course) and Dave Fel- from nearby rural communities pro~~iding a the entire process," Mahon said. Ion, the Founder and owner of Pro ressive unique combination with a strong work East Central .Energy (ECE), the g oldest electric cooperative and third ethic. City Business routinely recognizes Rail, the short line rail service provider serv- Airlake as the Twin Cities second largest largest consumer-owned utility in ing Lake~ille's Airlake Industrial Park. A faro- industrial park the state, is a member of The Partner- ily train ride to breakfast at McDonalds rep- Team Lakeville member, Appro ;hip. "We have a strong commitment resents just one of the many techniques Mr. Development, lead by Jack Matasosky, acts tc~ the economic development of this Felton and Team Lakeville use to help busi- as the primary site planning, architect and area:' said Henry Fischer, Business ness relocation desicionmakers understand general contractor forbusinesses considering and Community Development Man- that at the southern gateway to the Twin an Airlake location. Appro's familiarity with a~,er of ECE. "We are excited to work Cities, an Airlake Industrial Park location Airlake and the I_ake~ille city approval toy*ether with the City of St. Cloud, offers many advantages. processes on build to suit industrial projects the St. Cloud Housing and Redevel- For Team Lakeville, rail service is just one comes from ~0 }'eats experience in the opment Authority and St. Cloud of .many advantages. Progressive Rail's ncighborhood~ In addition to the Atom t}PPc'rtuniUes, Inc. to dzvelop the philosophy is summarized by Dave Felton: Lumber .project above, current Appro ?50-acre Airport Business Park in an "We view our customers as business pattners pro)ecr_s arc undcnvay~ for Imperial Plash; effort to further enhance the area's in that we identify new ways to theirget their and Performance Office Papers .~ppro's eccmniny and quality of life:' Pincher products to market cost effectively .and, in many repeat customers and the compan}~~ satd. fact, identify new markets for clients' respect at Lakeville Ciry Hall follows from Airport Business Park is located products along the 60,000 miles of rail proven historical performance. c>ne mile north of the St Cloud throughout North America." A stroll Lake~lle's w•elcvming and knowledgeable Regional Airport at the intersection of through Pro Rail's 20 acre state. of the an city staff is available to serve potential Airlake Highway 23 and .US l0. ECE's imme- transloading facility -and .warehouse at businesses. The Ciry is blessed with well diate focus is to attract customers to Airlake give evidence to the wide variety of planned and developed transportation purchase land for high-tech, manufac- clients benefitting from Pro Rail's comdors, park systems, municipal services, turing and corporate headquarters philosophy. Several one time transloading advanrr~;cous property tax rarca, lira facilities. The park is zoned Planned clients including American Cast Iron Pipe insurance ratings and strong schools. Industrial/ Light Industrial with water and Wausau Supply have moved regional I_ake~-ille's small to«•rt tla~-or must hc. and sewer service expected to be distribution facilities to Airlake veer the last exTericnced to be appreciated. several years. Atom 1_umber with a planned ether Team I_ake~~lle member, include 138,000 sq. ft. facility and Metals USA with Cerron Commercial Properties' Stan Palmer a 55,000 sq. ft. facility are two new who represents land owner, Airlake businesses Pro Rail influenced in their Development, Inc. Cerron coordinates with decisions to locate in Airlake. These maJ~or Airlake Development, [tic. principals Pat acid projects will be coming out of the ground in Sean Reggan on pvtential land sales. 2002. IF rail volumes permit, Pro Rail has ~ affiliation with Premier Banks provides provided the rail infrastructure needed to Team Lakeville with a financing source and serve users free of charge. Since taking over rounds out the one stop shopping the rail line into Airlake, Proggrr ive Rail has development concept Airlake offers. This increased annual rail car trafficefom 650 cars concept is designed to make the site in 1995 to a projected 6000 cars in 2001. selection, design build and relocation These dramatically increasing car counts Process less Complex and manageable so prove that Prv Rail o rates cost effecdvel ~ entrepreneurs and business managers can ~ } run their businesses while a relocation or in .today's demanding just-in-time expansion project stays on track and on distribution environment. budget. While rail service has drawn attention in Today Airlake Development has many recent years at Airlake, the 1500 acre park's platted lots mailable ranging in size from 1 success goes back to the mid sixties when Hitchcock Industries and Maynard Johnson envisioned and laid the foundation for Lakeville's multi modal industrial complex. In addition to easy highway access via 1-35 (which lies t<vo miles west at Highway 70) and Cedar Ave., MAC's Airlake Regional Airport provides air service to businesses operating at Airlake. ECONOMr1C [7E1/EIOPMENY CONi~ERENCE October 15, 2001 ._~.m _ . ~F~,7s~I (LASER(" brought to the site by fall of` ZO0 9 . Sites available in spring of 200u. While ECEand other n~embe~~ao~f The Partnership are continually dvo+[c ~ ing to develop business land inl~a~a~,~aP r ~ the quality of life in the area, i; is k'~ ~ " - _ ~ ~ r r~h~r ~ already known as one of tl+L `+tati~"~ thriving river cities that r~ff`crs dabs+M~ ~ '~y ~ ; ~ educational, recreational and c°ultural ~ ~fi opportunities. f ~ ~ i of ~ Park Industries ~ti vet inoth~r lcrc +i I ~ " ~ f business that chose tc+ ~;tay ztnd +~r~~ix= ~ r ~ ~ 1.~ rtv t in region. In 2000. the rt+<+nufr+cturin~ i ~ ~x company expanded from ~O.OOt) to ~ 120.000 square feet "Wc: 1} ! . machines all over the Cf a+ai.i ~ ~~ra~+- ~ cla. We could operate a.lmoa .~nti~•- ~ _ `?w. . where." said Park I'rr~;idt°r+t [';:~rtr Schlough. "We chose i~:> stay because of the community. It is stood (n,~ our- _ . people and it is good fur of+r b++•i- ness;' Schlough concl+.rdec+.- j St. Cloud is also e~p.~ricricin~ ar; ~ - int7ux of new businesses. In I ct+1~, i New Flyer. the nation`s number ctnc~ manufacturer of transit husc~,, built ~s ~ new 340,000 square foz++. t?c~r+drkr~ty:••+a f and final assembly facilit}, r\ncl ctr+"- rently. Huisken Meats is reniwat+n~~ plant vacated by Cmlden }"lu+tap ~~+ci there is a 60.000 squar<~ loot facility . • ~ - under construction for flbhott ~Iortti- western's - Specialty C"arc tenter. ~ihS 'r r:,-r'e ,4;(I~ L:!;i f~aitilr:~ U >>-Er)`~ )Yt-= ~~t !U;'~~ For information on development it: .~s'at r ~~°am < ~lc~~ulc nu°r>>h~,~ t.'• I~•arn the St. Cloud area, visit tvww.sca}cart. i-t ~:+cteti ant! mam: unf~lattcd parrch r~i n~i~~+t +Ix~t+r ~~h,u ;Aulul:e h<i, to offi~r In nership.com. ~tnuuti s+zes tc> mcet~any tieecl inducting a drink; t-rni night even get a [IYC train rare contiguous ~Ot) acre t,arcel. Please ride and brcakt:ast at Mc[~~~nald~ • • ~ ~ • ~ ~ ~ ~ • Several 1 to 8 acre platted lots "ready to build" Airlake has a 200 acre parcel Landowner. available-one of the largest ~ contiguous parcels for industrial . , ~ corporate campus development ~4'" ~ ~ DEVELOF'MEM in the metro area s<:<,r, rtf,~;~r; 651-503-7250 Excellent topographical ~ZT~ ~ ~ ' ' www.airlakedeveiopment.com & soil conditions 2 mikes to ~ _ y ~ ~'<,C i24~~;FStt 612-759-2786 Service oriented, non-captive inquiry~ai rlakedevelopment.com rail & transloading services provided by Airlake based, Progressive Rail High speed Internet connections Architecture, Planning available & Construction: 20 minutes to Minneapolis/ St. Paul International Airport Build to suit (own or lease) and [)f~~'~~,1,~.~F ,~~t,;,~ financing packages available 3~ck rn~t~se~~y-CEO 21476 Grenada Avenue ,~.,~::;.t~`~.~y: ~'~~~~`/t.~f.~/ ~ ~r~iv~ ~'~`t`~~~~.t~~c~~~° E :`y ~ r Lakeville, MN 55044 ! . www.approdevelopment.com ...Newest Airlake Neighbors/Expansions. ...Planned Construction 2001-20OZ office~approdeveiopment.oom Airlake Truck Body & Paint 18t EMerpr?sas Drywall • New construction service-from ApPro Development, Inc. Acorn Lumber Aztec, Inc .Metals USAstics design through construction Delmar Company Designed Cabinets Performance Office Papers • Land use development Hobs; Inc.. Scruples, Professional Salon ' .r ~ ~ ~ ~ ~ ~ r • „ CONSTRUCTION After strong . September, builders look ahead By Neal Gendler Star Tribune Staff Writer Twin Cities-area home builders enjoyed a strong Sep- tember, with residential build- ing permits equal to those of September 2000 and the num- ber of units planned from those permits slightly higher, the Builders Association of the Twin Cities said Monday. For the year so far, permits are 3 percent behind those of 1998 -which builders call the last "normal" year before a two-year boom -and units were 2 percent ahead. PERMRS continues on D5: -Model home visits are down. Residential: `construction Number of building permits issued in the Twin Cites metro area September 2000 2001 Permits 840 840 UNts 1, 098 1,118 Value{mN.) - $181.4 Top titles (by permltk Blaine, 40; Lakeville, 36; Maple Grove; 34; Albertville, 26; Monticello, 24 (by unRsx Maple Grove, 70; Blaine, Codn Rapids, 46; Lakeville,: 45, " Maplewood, 35 Yeaf-to~date 2000 2001 Permits 8, 949 8,183 Units 12,277 11,333 Value (mil.) $1,797 $1,803 Top titles (b9 permttg Shakopee, 401; Blaine, 385; Lakeville, 331; Maple Grove, 278; Rogers, 247 (by unif`sk Shakopee, 560; Maple Grove, 556; Apple Valley, 426; Blaine, 416; Eden Prairie, 387 Source: Builders Association of the Twin Cities ' r/ _ _ _ October 2, 2001 Michael Sobota City of Lakeville 20195 Holyoke Avenue South Lakeville, MN 55044 5.5% FIXED-RATE FINANCING FOR MANUFACTURING COMPANIES Dear Michael: With the downturn in the economy hitting the. manufacturing sector especially hard, now is the time to assist manufacturing and processing companies with low-rate financing. Industrial Development Bonds (IDBs) are a federal program of tax-exempt financing for manufacturing companies to invest in capital assets (buildings, land, equipment) and create jobs. Since GE Capital is a direct bond-buyer of IDBs, the cost of issuing these bonds is far less than working through a bank or underwriter. Because our costs are significantly lower. our mirirnutn bond amount is only $ l million. In addition to tDBs, GE Capital finances companies using traditional egwpment leases and loans, real estate mortgages, SBA loans, and USDA Rural Development Business & Industry Loans (for projects located in municipalities with a population under SO,OOOj. Please contact me at (952) 897-5632 or at david.burdt~gecapital.com to confidentially discuss any projects where I can be of assistance. You can also check out our WWW site: www. gepublicfinanc e. com Sincerely, GE CAPITAL CORPORATION David Burd Vice President /Senior Account Manager RO~Rn. HOFFMAN LARKIN HOFFMAN DALY CX. LINDGREN LTD. RENEE L. JAacsoN ERALD H. FRIEDELL 7 f ) WILLIAM G. THORN70N EDWARD J. DRISCOLL CHRISTOPHERK LARUS JOHN D. FULLMER ATTORNEYS A T LAW OOUGLAS M. RAMLER FRANK I. HARVEY JOHN F. KLOS CHARLES S. MODELL LYNN M. STARKOVICH CHRISTOPHER J. DIE7ZEN ANN M. MEVER LINDAH. FISHER ~ 5OO WELLS FARGO: PLAZA ~ STEPHEN J. KAMINSKI THOMAS P. STOLTMAN THOMAS F, ALEXANDER MICHAEL c. JACKMAN 7900 XERXES AVENUE SOUTH DANIEL T. KADLEC JOHN E. DIEHL SHARNA A, WAHLGREN JON S. SWIERZEWSKI BLOOMINGTON, MINNESOTA 55431-1194 PAUL H. McoavALL THOMAS J. FLYNN ADAM S. HUHTA' JAMES P. GuiNN TELEPHONE (952) 835-3800 ALEYA R. CHAMPLIN TODD I. FREEMAN NICHOLAS A.J. VUETSTRA GERALD L. SECK FAX (952) 898-3333 DANIEL JI. BALLINTINE JOHN B. LUNDOUIS7 DAYLE NOLAN' JOHN A MACK JOHN 0. COTTER' JEFFREY D. CAHILL PAUL B. PLUNKETT SEAN D. KELLY ALAN L. KILDOW SONVA R. BRAUNSCHWEIG KATHLEEN M. PICOTTE NEWMAN JOSEPH J. FITTANTE, JR. MICHAELB. LEBARON JONATHAN J. FOGEL GREGORY E. KORSTAD CYNTHIA M. KLAUS GARY A: VAN CLEVE' MARK D. CHRISTOPHERSON TIMOTHY J. KEANE NEAL J. BLANCHETT ALAN M. ANDERSON TAMARA O'NEILL MORELAND MICHAEL W. SCHLEV JAMES A. MCGREEW, III RONN 0. KREPS - THOMAS A. GUMP' TERRENCE E. BISHOP TODD A. TAYLOR GARY A. RENNEKE CHRISTOPHER J. DEIKE CHRISTOPHER J. HARRISTHAL GENEVIEVE A. BECK KENDEL J. OHLROGGE MARLA M. 2ACK BRUCE J. DOUGLAS DIONNE M. BENSON WILLIAM C. GRIFFITH, JR. JEREMY C. STIER JOHN R HILL PETER J. COYLE OF COUNSEL LARRY D. MARTIN JAMES P. LARKIN' JANE E. BFiEMER JACK F: DALY JOHN J. STEFFENHAGEN D. KENNETH UNOGREN MICHAEL J. SMITH ALLAN E. MULLIGAN ANDREW F. PERRIN FREDERICK W. NIEBUHR ALSO ADMITTED IN WISCONSIN September 18, 2001 John Hennen City of Lakeville 20195 Holyoke Avenue West Lakeville, Minnesota 55044-0957 Dear John: I am enclosing an article published recently in Minnesota Business which I thought would be ofinterest to you. The article suggests strategies for siting new facilities as part of a redevelopment project. Our clients are increasingly taking advantage of local interest in redeveloping their communities by attracting new employers and expanded facilities, such as commercial, industrial, retail and multi-family residential projects. I hope you find the information useful. Please call if we can be of help! Sincerely, Bi1I Griffith, for .LARKIN, HOFFMAN, DALY &LINDGREN, Ltd. ::ODMA\PCDOCS\LIB l \705139\l I T I N I, as featured in ~i 31 c c.7 OAS G,; O~A~ Ci Leadership,.Opportunity, Growth ¦ ¦ I How to maximize real estate redevelo men a ortunities P t PP BY BILL GRIFFITH ost business people assume that it is easier to develop in a cornfield I on the edge of town than it is in a "brownfield" in the center of town. In many' cases, that is true. However, given the focus of local government on turning around underutilized or polluted sites, corporate prop- erty managers and other business people may want to look to redevelopment as I, an alternative. The best redevelopment sites are parcels that have good visibility, ~ access, and proximity to population density. Where to Start? To begin your search, talk to local.. offs- community, they can provide good leads, require removal of significant con- cials in charge of redevelopment.. The ' even for properties not listed for sale. straints, such as blighted build- j I head of the local economic development ~ However, brokers will usually direct you to ings, pollution, or access agency (EDA) or housing and redevelop- ! sites that result in a commission; that's how problems. Most-redevel- ment authority (HRA) in a target commu- j they make their living. As an alternative, opment projects take Wiry may be most useful. It is their job co you may want to work with a real.. estate more than a year support development and redevelopment of ' advisor, or real estate attorney, on an hourly 'i to bring to c j the urban core and aging suburbs. They ! or fixed-fee basis. In this case, the proles- groundbreak- ~ have good networks of contacts for fording j sional is working exclusively for the client. mg. By compari- , _ sites. Often, EDA and HRA staff will pro- ' son, a typical devel- F, vide technical expertise or public financing Assess the POte0tl81 ! opment. project on~ z~" to help move sites with significant develop- 1"t is rypical for business leaders to shy vacant, zoned land, with ~ I ment constraints. ~ away from the risks associated with devel- I good access, will take only six m Local real estate brokers can be another opment or redevelopment projects. This is ; months to secure approval to ; source for identifying good redevelopment ' not without justification. Often the best begin. construction. ~ sites. If they are "plugged in" to the target sites in the fully developed urban area will I On the other hand, working with I Reprinted with permission of the publisher. (952) 844-0400 ~ ~ I A ~ I r.~ t t . local officials on a redevelopment project concept is like rezon- ~ iY!± issues. Revise devel- i ~ may actually open the door to expedited ing because it involves a ~rr~t opment plans without I o, governmental approvals, public financing, discretionary decision of ~ ~ - giving away the deal. For land assembly, and a host of other tools to ~ the local government. It is , instance, if planning staff F attract redevelopment. ;designed to provide flexibility for wanes increased landscaping and T Another opportunity that aredevelop- ~ large-scale projects. For instance, if a reduced signage, and signage is criti- ,;y ment site provides is good proximity to commercial corner has been slow to cal to success, increase landscaping. existing support services,. workforce, public redevelop, the city may consider a PUD Meet with decision makers early to i o services, and infrastructure. The most likely designation to reduce parking require- gauge support. Learn their polity hot but- N redevelopment opportunities include: older menu and increase development density to tons. For instance, opponents like to raise shopping center sites, industrial sites, and encourage developers to acquire the site. i issues such as traffic, noise, glare, property excess- public Facilities, such as trucking By doing this, the site turns over to a high- I values, and demand for services as reasons facilities, transfer stations, school sites, and ~ er and better use and increases local tax to deny the project. If these are hot buttons maintenance facilities. ~ base. Usually the trade off is higher devel- j for decision makers, tell them how you will opment, more landscaping, more ameni- ~ solve their problems. Prepare for the Review Process ~ ties, and the like. ~ In most cases, business leaders favor sites !Assemble the Right Team that are already zoned and subdivided for Conduct land-Use Reconnaissance nutting together a qualified team is essen- ' their corporate or business use. This is a ~ /~ost business leaders are on a tight ' 1 tial to any development or redevelop- good way to efficiently deploy develop- i 1 V ltimetable to produce sales, or other ment project. This team will usually include ment efforts and reduce the time to open a concrete results. It may seem counterpro- an architect, engineer, landscape planner, new site. However, once the easy sites are ductive to recommend that you take time to ; and development attorney. More involved "cherry-picked," the tendency is to turn it study local land-use plans, but this will j projects may require the expertise of a traffic over to someone else co find a good site, or improve your chance of success. i~lway~s engineer, wetland engineer, fiscal consultant, I Know your legal position as leverage or as a backstop to a difficult or contentious staff member. head to the next location on the target review the city record. Ask for copies of the and frequently a graphic artist to prepare map. You should consider "rezoning" and comprehensive plan, land use map, zoning ; drawings and renderings of the project. "planned unit development" alternatives to ~ ordinance, environmental controls, as well Business leaders who understand cede- obcain an advantage over competitors in ~ as the prior history of the site and even the I velopment opportunities and the rigors of terms of location. prior history of related sites. ;land development practice can add value ; Rezoning typically involves a discre- Take a planning approach to land to existing real estate assets and locate tionary decision by local officials to change development. Most regulators do not new sites for business expansion. The key the classification of land from one zone to want to be threatened with a lawsuit. (On to success in this arena is patience, the another. In other cases, rezoning may take ; the other hand, it is important to know ; right team of experts, and the good judg- ~ the form of a text amendment to clarify that i your legal position as leverage or as a back- ment to know when to go the distance for a certain commercial, retail, or service use is j stop to a difficult or contentious staff ' a prized site. .allowed in a zoning district. member.) You want to know as much as Commercial or residential neighbors are i the other guy. Review the sources of the likely opponents to any rezoning effort. ' authority. for development. These include ~ Bill Griffzth [wgriNithQlhdleom) is a share- Sometimes, opposition. can be satisfied the comprehensive plan, zoning map, zon- ~ holder with Larkin, Hoffman, Daly e'r by creating performance standards ,writ- ; ing controls, subdivision regulations, 'Lindgren, Ltd. He practices in the areas of I c ten into the zoning text. If the communi- environmental quality regulations, storm ' real estate, land use, environmental review, ~ o ty is concerned about noise, traffic, light- water regulations, wetland regulations, I'' municipal law, and administrative law. ° ing, or trash handling, performance Stan- and parking requirements. dards can address these concerns and keep , Meet early with planning, engineering, I the developer in a good site. I and building staff. Keep notes of meetings, .The planned unit development (PUD) ~ document resolution of key development I Reprinted with permission of the publisher. (952) 844-0400 ~ I I