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Home My WebLink About12-11-01 City of Lakeville Economic- Development- Commission Regular Meeting Agenda Tuesday, December 11, 2001, 6:00 p.m. Lake Marion Conference Room, Community Development Department City Hall, 201.95 Holyoke Avenue 1. Call meeting to order. 2. Approve October 23, 2001 meeting minutes 3. Introduction of Dave Qlson as Community & Economic Development Director 4. 2000-2001 Strategic Plan Update A.) Labor Force Committee Update -Todd Bornhauser, Chamber of Commerce 5. Manufacturing ~ Technology Month 2001 review 6. 2002-2004 Strategic Plan A.) Work Plan Goal #1: Educate residents on benefits of C/I • Financial background: Dennis Feller B.) Work Plan Goal #2: Financial planning with school, county, state,. etc. • Meeting with School Superintendent Gary Amoroso C.) Work Plan Goal # 3: Encourage investigation of critical business infrastructure • Interchange Study • Meeting with Dakota County Technical College • High Tech Subcommittee 7. Consideration of application for 2002 CDBG funds for Downtown Improvement .Program 8. Adjourn. Attachements: • Airlake Park News., Vol. 9, No. 4, Fa112001. • Business Transactions Newsletter., Lakeville Area Chamber of Commerce, Nov/Dec issue • Findings and Recommendations for the Dan Patch Commuter Rail Study., Parsons & Brinckerhoff, August 30, 2001. • Metro East Broadcast -November, 2001 • Affordable Housing Critical to Economic Development., Maxfax, October, 2001. • Major Hotel Proposed in Burnsville., City Business, November 2, 2001. • $102M Project Sought for Apple Valley., City Business, November 2, 2001. • Levitz Shutting Down Burnsville Location., City Business, November 2, 2001. • High-flying Fabrics: An Upstart Minnesota Firm Protects Critical Equipment for the Giants of Aerospace., Industrial Fabrics Product Review. • Rexam to Sell Plastics Plan in Lakeville., Minneapolis Star-Tribune, November 21, 2001. G:\AFlad\Econdev projects\EDC\2001mtgs\93December\121101 agenda.doc 1 Economic Development Commission , Meeting Minutes Item ~0. October 23, 2001 City of Lakeville Economic Development Commission Meeting Minutes October 23,.2001; 6:00 p.m. Lake Marion Conference Room, City Hall Members Present: Vogel, Pogatchnik, Tushie, Jerry Erickson, Miller, Bornhauser, Brantly, Emond, Ex-Officio Member Robert Erickson, Ex-Officio Member Bornhauser. Members Absent: Schubert, Matasosky. Others Present: Staff present: Dennis Feller, Finance Director;. Ann Flad, Economic Development Coordinator; Paul Steinman, Springsted; Mikaela Huot, Springsted. 1. Calf Meeting to Order. Chair Vogel called the meeting to order at 6:03 p.m. in the Lake Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville. 2. Approve August 28, 2001 meeting minutes. Motion 01.23 Comms. Pogatchnik/Emond moved to approve the minutes of the September 25, 2001 meeting. Motion carried unanimously. 4. A.) 2002-2004 Strategic Plan -Discuss Draft Work Plans. Chair Vogel indicated that item 4.A. would be moved to the beginning of the agenda. Chair Vogel indicated that he worked with staff to develop draft Work Plans which outline. proposed steps to be taken in the implementation of the Strategic Plan Goals. The proposed work plans were developed based on the input from Commissioners at the last meeting. Ms. Fiad reviewed the proposed work plans as follows: To inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. Why educate. and iril'prm 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.) G:WFIad\Econdev projects\EDC\2001mtgs\910ctober\102301 mnutes.doc 1 Economic Development Commission Meeting Minutes October 23, 2001 Preluiunary 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 mesa a (Research information.) 2. Promote/"Sell" the benefits of commercial/industrial development to target markets • Identify communications channels for each target audience • Develop and capitalize on partnerships to communicate mesa e Commissioners reacted favorably to the proposed work plan for goal #1. Chair Vogel indicated that the target audience for this goal is the residential population of Lakeville. Comm. Tushie suggested that the EDC's message that is developed include a discussion on the commercial/industrial growth referenced in the Comprehensive Plan.. Comm. Brantly suggested that the. message includes financial and other benefits that commercial/industrial development brings to residents. Comm. Brantly also indicated a desire to work with staff on implementing this goal. City Administrator Robert Erickson also indicated that the balance of commercial/industrial development influences the City's bond rating and this should be incorporated into the message shared with residents. GOAL # 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 the city in the future. Why Financial 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. • 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. Page 2 of 6 G;\AFlad\Econdev projects\EDC\2001 mtgs\91 October\102301 minutes.doc Economic Development Commission t Meeting Minutes October 23, 2001 • Clearly communicate tax impact of business. Preliminary Work Plan: Action Ste s Res onsibilit Bud et Outcome Timeline 1. Define Goals of Cit ,School and Count Subcommittee a. Determine Priorities of Cit ,School District, Count b. Determine Common Goals of City, School District,. and Count 2. Conduct acost-benefit anal sis for the oats defined 3. Develo a tan to achieve the oat(s) identified 4. Im lement tan Commissioners discussed methods of determining the priorities and common goals of the.. City, School District and County. It was concluded that several EDC members would meet with Superintendent Amoroso of the School District and with the appropriate people within Dakota County (not the Dakota County Economic Development Partnership, as this is a separate entity) to discuss each organization's goals and needs and to determine grounds for further discussion. These meetings will take place at the School District and County offices respectively. The representatives of those organizations may then be asked to attend an EDC meeting to promote further discussion. co~aL # 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. Wby 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 Ptan: 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 types of industr ,etc'?) Page 3 of 6 G:\AFlad\Econdev projects\EDC\2001 mtgs\91 October\102301 minutes.doc Economic Development Commission Meeting Minutes ~ October 23, 2001 2. Determine what type(s) of infrastructure our targeted audiences need. 3. Develop a plan for encouraging those types of infrastructure developments in Lakeville once identified. Commissioners expressed support for the proposed work plan for goal #3. It was suggested that a task force look at surrounding jurisdictions' infrastructure plans in addition to looking at the City's needs. City Administrator Erickson suggested looking at other communities for models. 4. 2000-2001 Strategic Plan Update -Labor Force Committee Ex-Officio member Bornhauser gave an update on the progress of the HR/Labor Force Committee. 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. NationJobs 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 the country's September 11th tragedy and subsequent economic situation. 'The "Chamber Responds" initiative suspends the traditional pricing for local Chambers of Commerce ($19,000) to create a local 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 two individual company memberships. The reduced cost may make it financially feasible for the JobslnLakeville program to be launched in spite of the hesitancy of companies to spend money on recruitment tools at this time.- Ryt-Way and Menasha have indicated that they will subscribe to NationJobs. This may meet the requirement of the new "Chamber Responds" initiative and allow the JobslnLakeville program to proceed. Mr. Bornhauser 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. 6. Manufacturing & Technology Month 2001 Ms. Flad reported that the City Council proclaimed October 22-November 23 as Manufacturing & Technology Month in Lakeville at their October 15, 2001 Council meeting. This marks the eighth annual recognition of the contributions manufacturers bring to the Lakeville community. Page 4 of 6 G:\AFlad\Econdev projects\EDC\2001 mtgs\91 October\102301 minutes.doc Economic Development Commission Meeting Minutes ' October 23, 2001 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 Stirtz 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. 1. Incentives Study Paul Steinman and Mikaela Huot of Springsted presented the EDC with the final Incentive Tools document. Eighteen tools are presented in the study as possible means of funding 33 different economic development objectives that the EDC previously listed. The Incentives Subcommittee has reviewed the document and recommends acceptance of it. The Incentive Subcommittee requested additional information on five tools: • Tax Increment Financing: In spite of legislative changes that will reduce the amount of revenue generated in existing districts, TIF will remain the tool of choice for redevelopment,. soils contamination and housing. • Tax Abatement. Mr. Steinman suggested creating a Tax Abatement Pool whereby the City creates a tax abatement program and holds the funds for future project(s) and thereby provide upfront assistance for future projects. • Industrial Development Revenue Bonds: IDRB's have not been the tool of choice thus far because of TIF, but the changes in TIF will make it more popular. • DTED's MN Investment Fund: MIF is what was used for the New Morning Windows project in Lakeville. It is a competitive application process and continues to be a very good. source of funding business development and seeding Revolving Loan Funds. • DTED's Redevelopment Fund: The Redevelopment Fund was not funded by the legislature this year, but there is strong support for funding it in future years. It provides gap financing. Mr. Steinman also suggested that the Economic Development Fund, Revolving Loan Fund, and CDBG be further examined. Mr. Steinman indicated that the EDC could further explore the uses and limitations of these tools through workshops developed by Springsted. Springsted could also work with the EDC to develop policies and application processes to assist in evaluating the appropriateness of projects relative to these incentives. City Administrator Erickson indicated that the most difficult obstacle for the City to overcome relative to future development is funding the upgrade of the interchanges on I-35. The interchanges need to be upgraded in order to allow for access to property Page 5 of 6 G:\AFlad\Econdev projects\EDC\2001 mtgs\91 October\102301 minutes.doc Economic Development Commission Meeting Minutes October 23, 2001 and the subsequent development of land adjacent to I-35. Comm. Tushie questioned whether a special service district could be created along the I-35 corridor to fund improvements. Mr. Steinman indicated that a special service district may be possible if all land owners agree. City Administrator Erickson noted that the special service district idea is a creative way of exploring options for financing the interchange upgrades. Motion 01.24 Comms. Emond/Miller moved to recommend the City Council accept Springsted's October 15, 2001 Financial Tools Document as presented. Motion carried unanimously. Motion 01.25 Comms. Tushie/Brantly moved to recommend the City Council engage Springsted to explore creative options available for financing the upgrade of Lakeville's interchanges. Motion .carried unanimously. City Administrator Erickson also indicated that the City of Lakeville has nine existing TIF districts. They are not running a deficit. The legislative changes to TIF require Cities to pool their districts and use those funds prior to applying for special assistance through the state. The City of Lakeville anticipates pooling the districts' revenues. 5. Adjourn. The meeting was adjourned at 7:58 p.m. Respectfully submitted by: Attested to: Ann Flad, Recording Secretary R.T. Brantly, Secretary Page 6 of 6 G:\AFlad\Econdev projects\EDC\2001 mtgs\91 October\102301 minutes.doc Item 1~?0. r FOR 1Ml~1EDI~TE RELEASE November 16,.2001..:. CONTACT:. Robert Erickson, City Administrator Phone 9~2-98~-401 Lakev~~le r_~crr.Q~ Cor?:.~:u::r y ~.4i4 ~~"LVtLVrltt~ DevelopmentDirector, DirectorofPlanning The City of Lakeville has announced the selection of David Olson as the City's Community and Economic Development. Director and named Daryl Morey to the new position of Director of Planning. The volume of developmentactivty, combined with community growth, necessitated dividing the responsibilities that were previously under the sole direction of the Community and. Economic Development position, said .City Administrator Robert Erickson. He said, _"It became obvious that the economic. development aspect and the planning aspect `each demanded a concentrated effort to achieve the expectations of . our citizens and business leaders as'Lakeville continues to grow in the 21st century." Olson, who has served as Farmington's Community Development Director for the pa;t femur ana a haif years, began his duties in Lakeville on November 13. IVlorey joined the City of Lakeville in August 198$: Since then, he has served in a varizty of planning and development capacities and currently serves as AssistantCommunity Development Director.. Both Olson and Morey possess master's degrees in planning. `Olson will be responsible for managerial, administrative and supervisory work in the areas of Community and Economic Development and Building Inspections and will review all commercial and industrial development proposals. He will work closely City of Lakeville 20195 Holyoke Avenue • Lakeville, ~1~IN .S.i0;~~t • (612) 98~-~~00 • FAX 98.i--~-~99 wyvw. ci. Lakeville. mn. z~s Department Direr tors named page t?vo... with the Economic Development Commission on implementing the 2002-2004 Strategic Plan for Economic Development and act as a spokesperson with the business community. He said he"was impressed by the. quality ofxhe staff and challenged by the magnitude and variety of the commercial and industrial development either taking ~3Ce nr ar~tiri~.~t ~ o Arlo :.r P- ...e... H„ a~,..d, L uM eery much looking forward to working in - Lakeville and getting to know people in the community, especially in business and industry. Morey will direct the planning and zoning functions of he City, including overview of residential development. He will also supervise the preparation and maintenance of the City's Comprehensive Plan, prepare and propose revisions to the'subdvsion and zoning and sign ordinances. He will continue to serve as staff liaison to the Planning Commission and provide planning and zoning information and assistance to dewelopers, property :owners, .residents and others. He said, "T'm excited about the opportunity o serve as Lakeville's Planning Director. I look forward to the challenge of this newly. created position and continuing to workwith the Planning Commission to carry out strategic growth management objectives with an emphasis on quality life cycle housing." Mayor. Bob Johnson said he was pleased about the appointments of Olson and Morey, adding, '`I worked. closely with Mr. Olson when I was CEO at Trinity Hospital . . in-Farmington so I have firsthand knowledge of his qualifications.. As a Council Member and Mayor, I have. seen the tangible results of Mr. Morey's ability to manage .projects. Both individuals possess valuable expertise and outstanding skills that will keep the Lakeville community a great place. to live and work." Agenda Item tl`p' MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator ~ DATE: December 5, 2001 RE: 2000-2001. Strategic Plan:. Progress of Labor Force/HR Committee At the October 23, 2001 EDC meeting, Todd Bornhauser of the Lakeville Area Chamber of Commerce reported that the HR Committee was pursuing an opportunity with NationJobs.com web site service which would make creating a Lakeville labor force recruitment web page more financially feasible. The HR Committee. has now concluded that the closing of Merillat's plant in Lakeville has provided a ready source of labor for local companies. Coupled with downturn in the economy and the after-effects of September 11 t'', the HR Committee has concluded that the-launching of a JobslnLakeville.com web site will be postponed until a later date. This item will be placed on the EDC's agenda at such time as the HR Committee. is prepared to launch the initiative: Mr. Bornhauser will be present at the EDC meeting to discuss this issue further. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator David Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordinator DATE: December 5, 2001 RE: Manufacturing & Technology Month 2001 Review At the October 15, 2001 City Council meeting, the Council proclaimed October 22-November 23 as Manufacturing & Technology Month in Lakeville. This marked the eighth annual recognition of the contributions manufacturers bring to the Lakeville community. A copy of the Proclamation was printed on the Messages page of the Lakeville This `JVeek Life and Times Newspaper. Each week during manufacturing month, a fact or figure about Lakeville's manufacturers was also included on the Messages page (see attached copies of Messages Pages.) Information was also sent to each manufacturing business in Lakeville to assist them in informing the community on the activities and accomplishments of their business. Included was information on local press contacts and an article from Tim Bartlett, reporter for the Sun-Current, regarding the type of business information that may be newsworthy. See attached letter, contact list and. article for more information. A Recognition Luncheon held November 8, 2001 was the highlight of the month's activities. The event was very successful, with over 100 people from various businesses present to salute the contributions of Lakeville manufacturers. Nearly 40 representatives from 17 manufacturing companies attended the event. The manufacturers that were present received a Proclamation from Mayor Johnson, along with a Certificate of Commendation forwarded by Governor Ventura. Manufacturers receiving the Mayor's Proclamation and Governor's Commendation included Aerospace Fabrication, Airlake Truck Body & Paint, Arden International Kitchens, Atlas Specialized Transport, Automated Assembly, Aztec 1nc., Century Refining, Con Agra Store Brands, DR Horton, DHY, Dick's Sanitation, Hearth Technologies, J & E Manufacturing, Menasha Corp., Parker Hannifin, Rosemount Office Systems, Ryt-Way Industries and Stampings of Minnesota. The Proclamation and Governor's Certificate were mailed to those manufacturers that were not in attendance at the luncheon. The City of Lakeville's efforts to strengthen telecommunications services through the activities of the High Tech Subcommittee were discussed by Ann Flad, in a presentation entitled "In Pursuit of a High Tech Future for Lakeville.." Other manufacturers found resources to help them save money. Kevin Stirtz of Minnesota Waste Wise presented "Locating Strategic Partners For Your By- Product." Mr. Stirtz gave a wide variety of examples of how businesses can reduce their cost of disposing of products by locating a strategic business partner who may have a use for the material. Minnesota Waste Wise is anon-profit, membership funded organization dedicated to assisting businesses in locating cost-effective and environmentally safe methods of disposing of waste. !f~-~ ~ October 30, 2001 Dear Lakeville Business Person: Lakeville businesses are a critical part of the health and vitality of the community. While businesses are often well known within their own trade circles, at times they are less well known in their own communities. Do the residents of Lakeville know about your business? Do they know what products and services you provide? Do the other businesses in the community know of your significant achievements, or ways they could become a customer of yours or a vendor to you? ,Sharing your story with the community can help your business develop new customer relationships, attract hard-to-locate employees, and enhance the business climate here in Lakeville. During Manufacturing & Technology Month (October 22-November 23, 2001) and throughout the year, the City of Lakeville is encouraging ~ businesses to share their stories with the community. Enclosed are several local print sources that your business can use to heighten awareness of your activities. These resources will receive news .information in any format: phone, fax., a-mail, etc. Also see the enclosed column from Tim Bartlett, Lakeville Community Editor of the SunCurrent newspaper, for ideas of .information that might be newsworthy. The City of Lakeville wishes you continued success in your business endeavors. Please. feel free to contact us if we can assist you in any way. Sincerely, ~ i~ a Bob Vogel Economic Development Commission Chair City of Lakeville 20195 Holyoke Avenue • Lakeville, MN 55044 • (952) 985-4400 • FAX 985-4499 Recycled paper, soy ink What makes a good story? Almost anything can be a good story. It can be a person who went on a unique trip. For example, a Lakeville woman went to Dublin, Ireland to participate in a marathon. She raised money for the American Diabetes Association in doing so. It could be a business that conducts itself in a unique fashion or offers a different type of product. For example, a Burnsville homebuilding company has its Web site updated daily for customers so they can check the progress of the construction of their home. The best advice is to contact Sun Newspapers if you think you have anything worth mentioning in the paper. If not an entire story, maybe just a press release or brief in the paper. Photos are always welcome as well. For example, a Lakeville dentist had a group of students stop by his office. It wasn't worth a story, but the photo was put in the paper and was a positive addition. Another example was a Lakeville resident who is a lawyer. He has been presented an award for his work for several years and the paper published a brief about him and included his picture. The Lakeville Sun Current is devoted to Lakeville and the more news to fill the paper, the better. Fax information to 952-806-0133. Call Tim Bartlett, Lakeville Editor, at 952-882-2465 or e- mail him at tbartlettC~~mn,~siih~. We look forward to hearing your news. Thanks. Press ~elle~se C®~~~c~s i,al{cvillc T'l~s Week I.il'e ~'irn~cs - Ipn~lblished weekly Deadline: Wednesdays for the same week's publication Contact: John Sucansky Address: P.O. Box 549, Lakeville, MN 55044 Phone: (952) 469-2181 Fax: (952) 469-2184 E-mail roselake.thisweek(c~ecm-inc.com Su~nCu~rrenf - ~a~lblisi~aed weekly Deadline: Thursday for the following Wednesday's publication Contact:. Tim Bartlett Address: 7803 Glenroy Rd. Suite 101, Bloomington, MN 55439 Phone: (952).882-2465 Fax: (952) 806-0133 E-mail. tbartlett@mnSun.com Sainn Panel Pioneer Press - g~aalblisi3~d daily Deadline: 5:00 p.m. daily Contact: Tammy Oseid Address: 345 Cedar St., St. Paul, MN 55101 Phone: , (651) 228-2171 Fax: (651) 228-2179 E-mail: toseid(a~pioneerpress.com 11~Iinnea~~olis Spar-Triibnane - Pn~lblished daily Deadline: 5:00 p.m. daily Contact: Jeff Peters Address: 425 Portland, Minneapolis, MN 55488 Phone: (612) 673-4104 .Fax: (612) 288-8482 E-mail: ipeters cO.startribune.com Airlakc Part{ I~1cws - ~u~lasllcd quar~crly Deadline:. Published quarterly. Call for next due date. Contact: Ann Flad, City of Lakeville Address: 20195 Holyoke Avenue, Lakeville, MN 55044 Phone: (952) 985-4425 Fax: (952) 985-4429 E-mail: afladCa?ci.lakeville.mn.us ~ ~ Memo Box Oct. 23 • Economic Development ' Commission meeting, 6 p.m. ~ To warcn s neroadeast or 1M moat recent Cqy Counal and Wanninp Cornrmssron maeknga, cheek Ma program Lskng on Channel le. • , A salute to manufacturers... Tla~nk y0~ ~ The Mayor, City Council, Arts Center Board ~ e and Friends of the Arts Center extend a PROCLA,~IATION sincere thank you to everyone who helped Eor ~IanuEactutinll fd Technology hlont~t 2~~I make the Arts Center grand opening an outstanding success last weekend. Whether \t'tIERE,\5 manufactorin hoe the eecnnd tar e.t total q q payroll of any you participated in the BuyA•Chair campaign, volunteered your lnoinee..ector in ~lioncsola, prodding nmre than 31y time and energy, or attended the open house events, we thank you (or bdboo io 1999 va es and rm login over 4,On0 q p q people in your enthusiasm and your community pride. We cordially unite you Labrvdle ,loot, and to attend the performances that are scheduled in the upcoming R'HERF:ASmann6cturinp technology produ«. 331.3 billion for ebe inaugural fall season. :fate « onomy and is the third largnt single .bare (1B.1 ' f. percent) of our qmn elate product, and \R'HERL'.\5 manufacturing eapurts brought nestle 310.2 billion into the daft economy in 2(HNI, and Phone book delivery set; recycle old directories ~('IHiRE,\= manaf+eturinq lerbnnlogy provide. bigb rbiu, bigb wage job: that rignificanQy cmdrib to to Alinnewla's bigb dandard of Drli~eq• a(U S West Dex7D telephone books to homes and businesses is underway I;vinq and economic vitality, and and will continue through Nov. 30. You can recycle any npe of old phone books in special recycling containers located at: ~ n'I IEREAS manuE:ctoring contributed nearly $2i1 million in Prnnfl[r Ttl[phunt OJ~Cts, 14450 Bumhaven Dc, Burnsville. corporate income Wxu in f+linnesota, mon than any other Open 24 hours. ~~r0~_ bminerr sector, and nearly one third of total corporate Buckingham Disposal, 5980 Credit Ace.. Prior Lake. O en 9 ~ income rarer m 1498; nov a.m. to 3 p.m. M, T. W & F; 9 a.m to 7 p.m. Thursday; and 10 am. THEREFORE be it resolved that the Gty of Labevdle does hereby W 2 p.m. Saturday. puhli lv express its appreciation to all Lakeville area H[nntpin Counrp B[cyC(Ing d P~ohltur Wasr[ Drop-Ujj C'entrr, anufaclurers and their employees for the contributions 140(1 W. 96th St. Bloomington. Open 10 a.m. to 6 p.m. Tuesday through Friday, and they mabe to our community and state; ,nil that I, Dlayor aE 8 a.m. to 4 p.m. Saturday'. Labeville, do bercbv proclaim the month of October 22, More locations might lx added in the future. 5o ualch the Messages page (or more 2001, through \ovember 23, 2001, to be ~lanuf,cturinq and Technalogv ?Imdh in Lalreville, Dlimusota. information. You might also check with your hauler to see i(phonc hooks are picked up in the curbside recycling program. r.Ro6er•/ D. Qo6nron, mayor If you have questions about the phone book recycling program, call Mtan~ Spittle:. Recycling Manager. (1-B00-642-8215) or write to her at U S Ne,t Drs. Inc.. 9394 W. Dodge Rd.. Omaha. NE. 68114-3310. To honor local manufacturers. the Cih• Council has declared Oct. 22-Nov: 23 as Manufacturers and Technology Momh in Lakeville. This eighth annual Love ya, event will recognize the contributions that manu(acwrcrs make to our economy, ~ including jobs. tax base and communi[y involvement. •,,,.r'r, Statewide, the week recognizes its 9,300 manufacturing businesses for their Sparky.~ significant contributions to the economy. In Lakeville. over 90 manufacturing r ~ businesses -located in Airlake Industrial Park, the Faifield Business Campus More than 1.000 people ~ and downtown -employ nearly 4,000 people. The majority of the local attended the annual fire ~ companies arc small, with 90 percent having fewer than 100 employees. The Department open house Oct. ~ smallest employs two to four people, and the largest employs more than 300. f0 to say thank you to local fire ~ + To honor local manufacturers, each will be rovided a certificate of fighters and learn about what appreciation signed by Govemar Ventura. the Ciry's proclamation and letters of they do. Kids were greeted by a reciation. In addition, a rcco ninon luncheon is scheduled (or Nov. 8. Sparky. the Fire Dog, who was PP B a big hit. Sparky's costume ~ °~y was a perfect fit for Fee Fighter - ~ _ i ; Jason Amundson. DO yOU AI IOW r At the open house, fire fighters handed out 1.200 balloons and 2.000 trading cards and served 32 gallons of root beer and 150 dozen cookies. During the first two weeks If you are thinking about installing a flagpole at your in October, the Fire Depanment brought fire safety messages to 2.400 children in the residence, you should know that a building permit is not community's schools. required. Flagpoles at private residences arealsoexemptlromZoning On display at the open house were hundreds of letters wntten by local students Ordinance height bmitations. to the New York fide fighters following the Sept. t 1 terrorist attack. A lone fire fighter's boot was available for those who wished to make donations to the 9.11 Fund for the Before digging, you should always call Gopher State One Call to families of the New York fire fighters who perished ar were injured in the attack. mark utility lines. This tree service can be reached at 651.454-0002. Fire Chief Danny Barth said the $400 donated that evening, along with other Call at least 48 hours before you plan to install the flagpole. donations, will be sent by direct wire transfer to New Vork. He expressed the department's appreciation for the donations and to those who took the time to attend the open house. v m~ .Positions available. The water supply at the recreational vehicle wastewater ;~~e•-~X site in southeast Lakeville will beturned oft Fnday, Oct.26. After ~~'T~'r • LAKEV/LLE AREA ARTS CENTER FAC/L1TY ATTENDANTS that date, water for rinsing and cleanup will not be available unfit spnng. DUTIES-PoAOrm routine custodial and semi-skiaed work in the care and maintenance tithe Arts Wastewater tanks can be emptied at the site year around, with the wastewater Center complex. going directty into the sanitary sewer system. pUAUFICATIONS-Requires jand,xial and building maintenance experience, ability to carry and Ilk _ . ~ 75 pounds, to climb and work an ladders and to commurkcale with laciliy users. Work 20 hours per Beginning MotWay. Oct. 22. for about one week, Hamburg Ave. will week; some evening and weekend hours required. • r,tti ;Ls becbsedtothroughVaffichom2101hStnorlhloronequarterofamile. PAY-Slartingpay isStt.SSIOSt2.85perhour,D.O.O.Eligibleloreceiveleavebenelits. ~ ` The closure is required for construction of ufilities and streets to serve SWrW a d Lakeville r~ r S'. ,y ' ~ Gk/ appliwaon by Octobuv 26 1.1 ~ the Village Creek First Additbn, For information. call the City Engineer ro Human Resau¢es. Gr d Lakevee, 20195 Hdyoka Ava.. Ukeville MN 5.,M4. at 952.985.4500. Fa appYtatwn and pb descnplion, caN 952•ge5.4400 a see our web silo at mmasi,laltBfilGma.u4. ~ e - ~ Memo Box i~ Nov. t9 - CAy Council meeting, 7 p.m., J ~ ~ City Haq, 20195 Holyoke Ave. i ~ ~ Nov. 22 3 23 - Thanksg/ving holiday observed; City offices closed ~1 • • wetly thank mess... Take a look at shows on Channel 16 If you're looking For an altema- ' The tragic events O Sept. 11 and their rive to football games after the 1 4:'- altermathhave hadaprolOUndimpaCtOna/l Thanksgiving turkey and pumpkin of us. As we observe the Thanks even •-~I 9 9 pie neat week. to channel surfing holiday withlamilyandbiends,weeontinue your wa+ to Government Channel rl„ ~r ~ ~'R f0 retnemb@I thOSe WhO SUIT@fed great 16. !Vew rersions of several locally ~ losses and those who are a//ected by the pmducea shows are nosy showing: T i CUIr@nl eCOnOmiC Gimat@. WE %Oin y0U in the channel program guide lists dates - ~t reflecting on the manyb/essings we have in and times. ~ ~ " 'r these great United States of America. The :Nescuges show, w9tich high- lights up-to-the•minute topic and ,LfAI',tr Birti fJINIJOII, events. has been updated with a new # ~ l ~ l±k, ~ Clrlrllt lj hllN(Gll/1 introduction, lively music and an ap- * ~ 3.~4 rtltlr( Br''iPli'.t; p,lPiil' Llili'k pealing graphic scheme. Topics or, ' = k` L1'ltillf ,titll~!'!~1 ~i' bi L~rurie Riti, the current show include winter park- ~ ~ r •tif ' , ing restrictions. the new property tax s x 'f - & l'!11 Staff/ ` ' ; • law, and winter parks and recreation happenings. On the Fneus on Lakeville show, Don Volk. Director of Operation; BytuningintoChannell6'sFoeusonLakevlllsshow,youoantakeatouro} Roads one opening! and Maintenance. takes viewers on a theexp.ndadWeterTreatmeneFacility.Above,DonVolk,Dlnettsrolt]perNiorta touroftheWaterTreatmentFacility. andMaintenanee,pointsouttheundergroundpipegelMrythatroutesunlnafad • Co. Rd.31 Pilot Knob Rd.) rgrth from 170th St. sod treated water to the proper destinstlons. ( The facility was expanded recently to through the Co.Rd.d6(1fo0th'St.)interseetionreopened meet increased water demands from residents anJ hose- In another segment, Bussler talks with Brenda Nov. 1d. Completion of recreational trails, sodding and nesses by adding several filter beds and cone-million Visrnvcc. Director of Liquor Operations,-about the new seeding,abngwdhinstallationofthefinallayerotasphalt gallon reservoir. beer kr~ registration policy at Lakeville Liquors The andpemtanent5triping,wi0takeplacenextspring. In the history segment, Betty N'eichselbaum tells policy requires a keg tag and paperwork that clearly • All lanes have reopened on Cedar Ave. South of about Waxy's, a resort operated by the family from the identifies the purchaser. The keg tag must be intact when Co. Rd. 70 folbwing reeonStruCtion, later I SOOs into the 1940x. Located on the south shore of the het; a returned for a refund ofthe deposit: The policy's Lake Marion, the well-known resort attracted families invent is ti, keep alcohol out of the hands of youth-and • The new alignment of Kenyon Ave.,(I.355ervice from the Twin Cities and as far south as !Missouri and ensrriug ;espunsible use by adults. drive) north of the Americlnn and the Cracker 8anel, is Kansas. Th;' Sleet the Employee segment introduces Carol expected to open next week. Forinformation,pleasecall On LPD Jovrna/, host Rick Bussler interviews Don Slehlhatf, Utility Billing Clerk, and David Lang, Senior theCigrEngineerat952.9B5-4500.- Volk about the new winter parking ordinance, which A.eountant. prohibits on-street parking between Nov. 1 and April I . He Anew version oC Rids do Government, which uses also talks with Patrol Officer John Kornmann about puppc,s and humor to explain City government to kids oC t winter driving hazards. all aftcs. will be aired next month, featuring a tour of the To dial 9-1-1 IrOm CeII ~ new Lakeville Area Atu Center. Communit service reco nition phone, know location y g All calls to 9-I-1 from cellular phones are automate- nominationS SOUght by COUnCIi tally routed to State Patrol dispatchers in I I statewide t)n pow know someone who quietly gives o FREE wOrrkSillOP districts across Minnesota. Unlike calls to 9-I-1 from litttt extra to eke rommwnitp? Someone who O/l s0~, tr„/O~~t~~/OV~,Se~f'ers" your residence, the location oC the caller is not displayed reaches oat to olkers? Or someone who might rY'~ 1 on the dispatchers computer screen. In order to quickly be known as "a backbone" ojrhe community? r~ Lower level/ dispatch emergency service personnel, the dispatchers If you do, you might want to nominate that must rely on the caller to tell them tfte location and nature special someone for the City Council's annual rerngnition basement of the emer env T~l. g Y~ for community service. Those nominated will receive finishing The Minnesota State Patrol urges cellular users to special recognition at the Dec. 3rd Council meeting. To ' pay attention to the following details that could help them make a nomination, please call Lea Guenther. Pu61ic remember their location in case of an emergency: Information Coordinator, at 9i2-985-4406 or send an e- ThUCSC18)/, NOV. 29, s p.111. • Mile markers and highway exit numbers mail to Iuenther@ci.lakeville.mn.us. SBfUfdBy, DeC. 9 H./11. • The county or city in which you're driving • The county or state highway number or road COUr1C11 Chamber, Clty Hall on which you're driving ReDUCE, ReUSE, RECYCLE! 20195 Holyoke Ave. • The direction o(travel You Will have the Opportunity to: When calling 9-1-1 to report an emergency, dispatch- You can recycle your old U. S. West Dez® phone ers need to know: books in special recycling containers located at Frontier • Develop and review your plans • The nature of the problem (a traffic crash, a Telephone, 14450 Burnhaven Dr., Burnsville: open 24 with a bUllding Inspector hours. For phone book recycling locations in Prior • Learn about eneral construction medical emergency. impaired. driver, fire, Lake and Bloomington, call 952-985-4400: Most waste and code fe Uir stalled vehicle. etc.) haulers in Lakeville pick up telephone books with 4 ements • Injuries and the number oC victims involved • Obtain information on plumbing, curbside recycling. Contact your waste hauler for • Your cellular phone number information. heating 8 electrical requirements lakevAle eisidenta only. Prtrogistnttonla roqutred. 1'1~ ~Ot, To register, calf Building Inspections at 952.985-4440. lJ f[ Space is limited, so register as soon as possible O Lakeville's manufacturers provide a wide variety of employment opportundies for area residents, including jobs for unskilled and semi-skilled laborers, engineers; accountants, administrative staff and human resource professionals. Interested enjoining anadult basket- O Employment at individual manufacturing companies in Lakeville ranges from one ~ ball, hockey or volleyball league for person to tnoreihan 300 people. ~ winter fun? Fur information, call the league director at 952-985-4615 or con- It•- .`•(,inu~;~t:iuriu~ r•' 1+•l:~irr,~n.~r ~~r,tti~t--( t, ; ' ' ,7 tact dbrettschneider@ci.lakeville.mn.us. • Memo Box Nov. s -City Courrel mais6rg" ~ • • } 7 p.m., City Hall, / 20195 Hdyob Aw. 1 To welch ereWOMNet~rM mOef. retell Cry Canned em1 P/punrp - Canrmaeron mefMpe,ehK41M proprsrn tienng on. ChannN re. • ~ Despite property tax shift to cities, bottom line for 2002 is favorable v / ,..,r; i rrlt•ulitttiin. r ~~crrflirl;; ~hr iulpfri 1 ril ~ c•e•x! lv'npc•rh• krx lrle• c•ltrtn~t"? /rtrr~ Gcrta c•rrntplchv/ hl' t/r~' !irrr.,,nr t heron'. IIthtrrr. II•rutirtr~•r't (JfJ;c•cr. rt'v linty lu full,: tl/rflrtl !hr hntmnl /ia• Gfdrrl N•i/! Nt~ +i,•,~r~rirr; fll.~c'.'.7r1.77fl1Ci I%t'llll' ~/l fll ~lUli lt~t;al!!!Y'll r•,'tlrl till 1'rlfll'~~il//~ IrLC• /Sill Despite the shit[ in your property taxes that resulted in an increase in City taxes. for on a [tome valued at S 150,000). The Dakota County ponion will decrease because its most Lakeville residents the bottom line is that your 200= propem• tar bill will likely toss of HAC.1 will be more than offset because the state is assuming rcsponsibilirytor show an overall decrease. According to M1tayor Bob Johnson. the City will continue to .District Court costs. pro. ide the high quality services that Lakeville residents expect. Previously, Feller said, more than 50 percent ofyour property taxes went to support Bywayofreview.CityAdministratorRobertEricksonandFinanceDirecrorDennis local school districts. In 2002, the percentagewil(becloserto34percentasthercsult Feller offered a brief recap ofthe information revealed in avo earlier articles. Basically. oftht State takeover ofgeneraleducation property taxes. Estimated property taxes listed most outstare cities along with Minneapolis, St. Paul and Duluth were "gainers'" in the in the accotnpan}ring charts do "ot include increases that might «suh f1~dm the pa4sage propem'tax law-their state aids will be significantly increased next year. Odthe other of school district bond or levy referendums in School Distrito 194 pr School District 196 hand. Lakeville and other metropolitan area growth cities were "losers" in the property in the Nov. 6 election. (Far information about where ro vgre in School Lksaicr 19~t tar changes-their state aids will be significantly decreased next year. Erickson said Qakeville/, `call 932-J69.7(03. For voting injurmarion joy Sclroot Qlstrrcr !96 cities like Lakeville will need to replace. lost state aids with increases in property tax (Rosemnrmr, Apple Palley, Eagan),. ca11 5 5 1-013-7 7 76.) levies. , Take a look at the'chart below to determent the approximate amount that your ¦ Homestead and Agricultural Aid (HACA) has been totally eliminated. with property taxes will be reduced. Ifyou have questions about City taxes, pleasecall Feller Lakeville losing 51.748 million next veer. Feller said this lass ofHACA wilt result m a at 952-985-4480. For information .about Dakota County taxes, call the Auditor! 22 percent increase. im the City's share of the property tax few. Treasurer at 651-138.4576. ¦ Manufactured Home HACA was also eliminated. Eight percent of Lakeville's The public is invited to participate in the City's Truth in Taxation hearing Monday, households (1.100) reside in manufactured home parks, t;nlike the regular HACA. the Dec. 17. at 7 p.m. at City Hall. r;lthough the Cityis not required to hold the hearing this lost Manufactured Home HACA (SS9,374 in 2001) cannot be recovered with the .year, the CityCouncilfeltitwasimportanttoexplainthepropertytaxrcfortn andprovide property tax lev}•. residents and business owner the opportunity to ask questions and [Doke cotntnents. ¦Theni:wtarlawdoesnotprovideanyapprcciablepropertytaxrelieftogrowth Thisisthefinalarticleinathtee-part series on the budget:Ifyouwouldliketorcview • cities like Lakeville, said Erickson. fn 2002- the City's share ofLocal Government Aid the ..earlier articles"which appeared on Sept. 8 and I5, go to the City website (LGA) will increase only 5288 over the 5498.808 received this year. /www.ci.lakeville.mn.ras/ and then to the City newsletter page where you can access As a result, Erickson said, when you receive }•our 2002 Truth in Ta~wtion notice previous ,Nessages pages. You can also review the September articlesby visiting City in late November re¢arding next year's propertyaaxes• you will notice the City portion Hall, 20195 Holyoke Ave., between 8 a.m. and J:30 p.m. weekdays or the Heritage ofyour property tax bill is increasing by 20 to 23 percent over 2001 (approximately E9S Library at 20085 Heritage Dc Call 6S I.365-3232 for the. library's open hours. City of t_akeville ~ _ ~ Estimated Property Taxes on Residential ..Homestead. Property Payable 2001 Compared to Payable 2002 j i r ! MARKET Cf1Y COUNTY SCHOOL OIST.19!• OTHER" 70TAL TAX DECREASE VALUE T001 2w_ 2001 3001 ZW2 2001 2002 2001 2002 $ °f n 5[25.000 5 329 $ 397 _ S 852 $ 37 $1,615 •c8 .4 $150,000 f 415 - S 502 _ 51.155 5 47 52.119. 01 4c ~ :5 f 175.000 5 500 - f 606 - _ 21.460 f 56 52.822 , ~ - 2 i ~ 5200.000 S 586 S 710 51,764 S 66 53.128 5';,_ - 'O.S'.'• f250,000 S T57 _ S 9t9 ~ 52.372 _ f 86 4i 34,[31 .2, f300,000 S 92B - 51,128 52.980 S 105 ~ 15.141 . t 'The Ogursa in each category except the school category apply to all plea Se Dolt! that the I/9UI@S abOVe d0 n0t IrlclUde Lakeville residents. Please noU that tM school portion of property tax increases resu/Nng lrom the posatbte passage of school levies for residents who live in District 196 (RosemounbAppts Valley- i Eagan) or 192 (Farmington) may vary from those wha live in District 194. district bond O! levy IelerBrtdUrrlS On Nov. 6. '-MerrOaodpn (i01lr1cd 6 Metropdifen MasgWfO C,Ortlyd ~-rlanufacturin~ fa Tecknolo~y l~Iontk _ _.w+t~ THANK YOU! A sincere thank yon toQQ i ~O J/OU ~CIIOW ~ ~ all who vokinteertsd their time and talent or donated food items at the Haunted Forest and Stories event last for rna Parks a Recreation weekend. A !oral of 520 pounds of canned and boxed food Oeoartmenrs winter acnvay ~ D Manutactunng empbyees earn an average of 27% -t?r?15 was donated roe the !OCaI !OOtl shelf. The ~ommunity orxhure enacseo •n ne¦~ ~heek; mow than ether Minnesota privet? 52Ctdr e!r'plCyeei ;pmt elf t 25 volunteers shoo? orghtfy amids 'h? ?hosts. ssve.:nncwdes.nrom+anonaccu: ] Minnesota manufacturers produce 531 oillion worth gooltns and wdches. The volunteers, who hailed from various civic sans s Secret srora, youm coos, of goods for the Minnesota economy. i a0un aance classes an0 atrxatic orgaNZabonsandfamilies,pertormedawiderangeofhelplultasks. aaques.seniacanteracavrtis. O Exports ofmanufacturrsdgoodabroughtnearlySt0.2 Anyoneinterestedinvoiunteeringforafuturespecialeventisinvhisd out0oor lee akaany, winter po billion into Minnesotadunng2lX>D. to call the Parks and Recreation Oept. at 952-985.461 t . opt;onunttias ana more. + - s• . ire . s . ' --Memo Sox Nov. 12 • Veterans Oay holiday I ' - I • ~ Y''),~IFS observed: Gty olrices closed +s~! S•"a ~ Nov. 1] - TeiecommunKations Crmmission. p m. C.3^.Y Nov. t s - parks 3 9etreatmn Commmee. o p.m. Nov. 15 • ?!anninq Cbmmissibn, ti pm. ~ ~af•~: t ~,.tR ai i Are you .ready for the heating season? • Have you had ycur heating system ;nspected to make sure it's working properly? Please See the • Have you installed cartrcn monoxide 'CO) detectors on coca level of ycur home? reverse. side for a If }nu answered 'yes" to both yursti ns ~ ~u're well on .our way to a ;ale heating eason. I f }our ans„cr was ~ ' - ~~w complete reprint "nu." please wnsider calling a reputable hrntin~ .~mpany a ~ L t I J or ,:our as cumpam to hose tour hratm~ i.,tem in- of last week's page- spected. Lake, ille Fire Marshal Jirn Michel said a thorough 6 It COntal115 the final inspection will make sure combustion is dean and coin- r ~ , piety. > S:i+ ,t I Y article Ifl a series Fie also advises that it you d t n ?t have CO fe[ecturs. ~t r t on property taxes. wu ihould purchase one nu,c for un ie~~e, of sour home. ~ ~ A riot) rObletn CO is a common by-product of nmbwtion tiom fuel L< {rte P ~ P burning appliances. including tumaces. It'; imisiblr and 1 ~ dy~~-; made the numbers hard undetectable to human sen;rs vet it can ;nose serious _ ti - to rend last week. health problems. includin¢ brain damaee and even death. - Physical symptoms of CO poisonin¢ include persi,- - ~ , 11 tent and severe headaches. nau ea. dizziness or drowsy. ness. An important clue that uu might be z~posrd to a high A variety of carbon monoxide (CO) detectors is available at level of CO is that the sum toms disa hardware arddiscountstores,withprieesrangingfrom530 P ppear when you are to 350. Some models simply emit an alarm while others not at home ur the source of the CO is nut operating. Siens proviCe a continous digital readout of CO levels. A that CO might be present in your home include unusually combmatian COtsmoke detectcr is also available. FREE WOrkshOp high indoor humidity. with persistent. heavy condrn;ation do walls and windows: stuff: or stale indoor air: and soot or ,cater collecting near a heating homer or Bent. fOr '~LlO~lt~yourself'ers" • To help prevem carbon murtuxide poisoning. Michel said. keep the area around your gas Cumace and water Lower level! heater clear to make ;ore they receive an adequate iupple of fresh vr. Chang furnace filters once a month. • Kerosznt and other potable beaten must he vet;led to the outside. Vevey use natural gas ovens as a heating basement iource and never use charoal indoors for either cooking or hratine. ` finishing • Wannine up a vehicle in an at[aehed garner. even ,cith the dour. Dorn. ran also cause a buildup pf CO. Slichtl laid. "Ahcacsback out the vehicle before lenine it warm up." Thursday, Nov. 29, 6 p.m. Szeeral varieties of CO detectors are available. from those that simply sound an alarm if the CO level is higher Saturday, Dec. 9 a.rrl. than it should be to those thaz contain a digital readout that gives the enact jecel of CO present. Cost varies from about 530 for a simple model [o Si0 for a mere sophisrcated model COUrIC1I Chamber, City Hell Du not install your CO detector nest to the fumacr or furnace room or near the kitchen stove because ens 20195 Holyoke AV@. appliances glee off a small )mount of CO at start-up. which could ;eiult in a misleadine reading. Also, the detector You will have the opportunity tae ihould not be installed ouGide a bathroom door or in other areas of hi¢h humidin~ because the humidity can affect the • Develop and review your plans reading. Test and maintain each detector arording to the manufacturer ;instructions. with a building inSpeCtOr If your detector indicatri CO ii areient in your home. ~lichrl fail ~~ou should: • Learn about general construction Open windo,ia W •.zntilate the area. ~ and code requirements Tum off }our [umace and other furl-homing appliances. ~ ~ Obtdln informafjon On plumbing, ` heating & electrical requirements 4 Gzt all occupants out of the house if amnrz is experiencing physzai ;cmptoms. "jy ~#°o-y.. Lakeville residentson/y.Pre-regiatrstionisrequircd. Coil 91 I for assistance. Pets ihould be removed from the ~iomz ai;u.. ~ Ta register, call Building Inspectionsat 952-985.44+10. Call your gas company. A service technician will examine ~ our neural gas r xj` ~ Space is limited, so register as soon as possible. appliances to see if they might be producing CO. y For more informatnn about Precautions }ou should take (or the home heatine season, call Jim Michel. Fire Come to the Family Marshal. at 9:2-98i,170j. or Chris Rosicai. Sr. Plumbing Mechanical inspector, at 4'2.9g_-11.{9, Turkey Shoot Nov. 17 Wrapping Up thOSe i.~,,_!,~'~~ Parents and kids are invited to the' fall yard cleanup chores? ^~T fun-tilled Family Turkey Shout Saturday. Construction l1(JC~t3t2 Nov at Vorth Trail Elemrn[ap School, 170th St. and You can raze leaves and other lawn and garden waste Pilot Knob Rd. The event is sponsored by the Lakec file and Expected to open Dv the end M ~ to the vRG Yard R'astr Compost Facilin in northeast Farmington Parks and Recreation Departments. Part:ci- ' ' next week : Co. Rd. 31 (Pilot Lakeville. lr s located just south ut I?0th St. off Pilot pants should arrive between 10:30 and 11:30 a. m. Knob Rd.)nortnhomt70thSt!nrougnthe KnobRd.(Cu.Rd.311.aerossfromCountnviecvMubile Teams will consistofanadul[andaehild(anadultean Co. Rd.46(160thst.)intersecfion. The road has Hume ?ark. bring more than one child) who will compete for a variety been closed for reconstruction since Aug. ii. Completion Tie file remains open seven days a week from 9 a.m. of prizes. No prere¢istration is necessary; cost is per of recreational trails. sodding and seeding, along with to ? p m. It will remain open at :east until Thanksgiving, team; SI for each additional chi W. installation of thetinal layer of asphalt and permanent sinp~~d, weather permittin¢. For information about wdl take place next spring. laes. call 9==:60-533, f tt ,i The Cedar Ave reconstruction Project from Co. Rd. ~IdIlUIactllrin~ C'~ TeC}tnOIO~Y Month 70 south to the City!imds 5 nearing compiehon .All lanes nave reopened and the 75-sF a.- ,a:~-and-pool !ct south of Toro DO. ~/~V. kn~w Oistnbubon Center has been completeC. The entire protect is J requueC!obecomp~etedbytheendoftheyear.Faacdinbnal OO J Manufacturers have been finding that~akevillei5agreat ~nlormanon on this project pr the one above.;all the Cakota ~ ~ place !o do business since Cesoatch Industries Located County Highway Engineer at 95290 "CC acre ~n ! 951. Aidak? InCustnai °ark .vas ,'3^,pC ~.n ! 9ii? ere ^ew ak,rmert Kenyorv ave. ,r- _r . ar:d ;tee Fairti?.C B:a!aess Carr s :OOH. ~ .r ! 99' AmencinnandtneCracker9anel.~sexpereCt open n.ate nor the darks & Recreation 7 Lakeville companes are sophisticated, with customers NovemOer. For information. please tall the Gty Engineer at DeparirnenY3 WinteraCtlVlty ranging from NASA to LockheedMartin, Raytheon 952-985-a5C0. brochure in this issue. and other national companies. , Agenda Item #:-~i-/i. MEIVICIRANDUM TO: Economic Development .Commission. CC: Robert Erickson, City Administrator Ann Flad, Economic Development Coordinator FROM: David L. Olson,. Community & Economic Development Director DATE: December. 5, 2001 RE: Progress on-Implementation of Goal #1 of the 2002-2004. Strategc`Plar? - Educate Residents on Benefit of C/1: Tax Base GOAL # 1; To inform and .educate residents. on benefits of Clitax base to gain communify support and appreciation for business growth: Attached is a 13 page document entitled Economic Development Indicators that was compiled by City Finance Director Dennis Feller.. This is staff's first attempt at compiling information to be used in efforts to educate residents on the benefits of Commercial/Industrial (C/I) tax base. Contained in this information is the breakdown of the City's tax capacity by class ,of property as well as by school district since where are portions of three chool .districts in the City of Lakeville. The .changes to he property tax system made. by the State Legislature during the 2001 session reduced the tax capacity created. by commercial .and industrial classes of property... However, under the new class rates for Pay 2002 taxes, the tax capacity created by C/I is still approximately double the tax capacity created by residential .homesteads.. As an example, a residential homestead valued at $250,000 creates a tax capacity value of $2,500: whereas, as commercial.. property valued at $250,000 creates a tax capacity value of $4,250. Additional information includes: historical building permit statistics, recent commercial and industrial businesses that located or expanded in Lakeville, ..largest employers and taxpayers, and City revenue information,by category. Mr. Feller and City Administrator Robert Erickson will be in attendance at the .December 11"' meeting to answerquestions.Commission membersmayhave .regarding the financial information,. In addition; an update will be given on the status of the resident survey currently being completed by Decision Resources and how the results of this survey may assist in .identifying the "target audience" for communicating-the C/I benefits. Agenda. Item The recent .announcement of a forecasted $1.9 billion State budget revenue shortfall could have significant impact on the property tax reforms thaf were approved by the Legislature earlier this year.. For that reason, the EDC may wish to consider delaying implementation of its goal to inform residents of the benefits of C/L tax base until the outcome .and impact of the projected State budget shortfall on local governments is knowrti. Economic Development Indicators ~~em~, z~, Economic Development Indicators Table of Contents t'aae Property values Net Tax Capacity Calculation 1 Net Tax Capacity - by class of property 1 Trend in Values 1 Market Value by class of property 2 Market Value by school district 3 Payable 2002: Estimated Taxes -Commercial/Industrial 4 Payable 2002: Estimated Taxes -Residential 5 Ten Largest Taxpayors 6 Building Permit Summary 6 Economic Development Activity ~ 7 General Information 8 Population Employment Labor force Summary of Minnesota Property Tax Laws 9 - 11 City of Lakeville Revenues 12 Manufactured homes 13 CITY PROPERTY VALUES Estimated -Payable 2002 Taxable Net Tax Capacity: $38,108,846 Payable 2002 Net Tax Capacity $30,881,614 Less: Captured Tax Increment Tax Capacity (1,409,435) Contribution to Fiscal Disparities (2,016,210) Plus: Distribution from Fiscal Disparities 3,360,512 Payable 2002Taxable Net Tax Capacity.. $30,816,481 Estimated -Payable 2002 Taxable Net Tax Capacity by Class of Property Residential $23,891,089 77.5% Commercial/Industrial, Public Utility and Railroad 5,224,972 17.0 Non-Homestead Residential 848,106 2.8 Agricultural 300,329 1.0 Personal Property 551,986 1.8 Total $30,816,481 100.0% Includes adjustments for fiscal disparities and captured tax increment tax capacity. Trend of Values Assessor's Taxable Levy Payable Indicated Estimated Net Tax Year Year Market Value~a~ Market Value Capacitv~b) 2001 2002 $2,768,068,800 $30,881,614 2000 2001 $2,734,573,160 2,414,628,100 38,108,846 1999 2000 2,356,155,606 2,080,485,400 32,665,479 1998 1999 2,041,574,725 1,857,833,000 29,379,685 1997 1998 1,863,345,583 1,708,687,900 28,995,807 1996 1997 1,697,062,665 1,540,932,900 28,276,630 (a) Calculated by dividing the City's estimated market value by the sales ratio certified for the City each year by the State Department of Revenue. (b1 .See Appendix 111 for an explanation of tax capacity and the Minnesota property tax system. Estimated -payable 2002 Indicated Market Value of Taxable Property: $2,734,573,160* Calculated by dividing the county assessor's estimated market value of $2,414,628,100 by the 2000 sales ratio of 88.3% for the City as determined by the State Department of Revenue. 1 City of Lakeville Property Values Sorted b Class Pa able 2001 2001 Market Values - Pa able 2002 Taxable Taxable Usage Sch Limited Net Tax Limited % of Net Tax Mkt Value Tax CPC Class District Mkt Value Capacity Mkt Value Total Capacity New Const New Const Residential 192 153,654,300 2,050,773 182,562,900 6.6% 1,827,419 15,302,100 153,021 Residential 194 1,551,855,000 21,372,305 1,798,788,300 65.0% 18,137,785 107,040,300 1,071,207 Residential 196 347,057,800 4,457,379 396,693,200 14.3% 3,977,404 18,207,700 182,077 Apartments 192 16,480,300 271,925 17,304,300 0.6% 259,566 - - Apartments 194 35,228,200 762,709 36,431,600 1.3% 554,336. - Apartments 196 1,812,000 41,360 1,852,500 0.1% 30,885 - Total 2,106,087,600 28,956,451 2,433,632,800 87.9% 24,787,395 140,550,100 1,406,305 Agricultural 192 3,307,500 37,517 4,004,500 0.1 % 36,588 - - Agricultural 194. 25,156,500 284,619 25,342,400 0.9% 231,793 128,900 1,289 Agricultural 196 2,716,100 30,710 3,400,300 0.1% 32,538 - - Total 31,180,100 352,846 32,747,200 1.2% 300,919 128,900 1,289 Commercial 194 136,400,100 4,324,631 157,971,200 5.7% 2,996,276 12,134,500 241,215 Commercial 196 5,524,000 170,347 5,706,800 0.2% 105,399 - - Commerical 192 6,077,500 203,635 6,267,400 0.2% 123,848 - - Industrial 194 94,513,800 3,104,390 96,163,000 3.5% 1,870,941 1,109,900 22,198 Industrial 196 2,479,800 82,814 2,496,700 0.1% 49,184.- - - Total 244,995,200 7,885,817 268,605,100 9.7% 5,145,648 13,244,400 263,413 Cabins 194 452,000 5,687 498,600 0.0% 4,986 - - Personal Prop 192 1,797,800 61,126 1,938,500 0.1 % 38,770 - - Personal Prop 194 22,354,000 755,892 22,548,700 0.8% 445,688 - - Personal Prop 196 3,178,800 107,758 3,446,900 0.1 % 68,613 - - Railroads 194 220,400 5,994 376,000 0.0% 6,770 - - Utility 194. 4,362,200 141,532 4,275,000 0.2% 82,825 - - Total 32,365,200 1,077,989 33,083,700 1.2% 647,652 - - Total 2,414,628,100 38,273,103 2,768,068,800 100.0% 30,881,61.4 153,923,400 1,671,007 Note: Payable 2002 values as of September 2002. Does not take Fiscal Disparaties into consideration Page 2 City of Lakeville Property Values Sorted b School District Pa able 2001 2001 Market Values - Pa able 2002 Taxable Taxable Usage Sch Limited Net Tax Limited Net Tax Mkt Value Tax CPC .Class District Mkt Value Capacity Mkt Value Capacity New Const New Const Residential 192 153,654,300 2,050,773 182,562,900 1,827,419 15,302,100 153,021 Commerical 192 6,077,500 203,635 6,267,400 123,848 - - Agricultural 192 3,307,500 37,517 4,004,500 36,588 - - Apartments .192 16,480,300 271,925 17,304,300 259,566. - - Total 192 179,519,600 2,563,850 210,139,100 2,247,421 15,302,100 153,021 Residential 194 1,551,855,000 21,372,305 1,798,788,300 18,137,785 107,040,300 1,071,207 Commercial 194 136,400,100 4,324,631 157,971,200 2,996,276 12,134,500 241,215 Industrial .194 94,513,800 3,104,390 96,163,000 1,870,941 1,109,900 22,198 Utility 194 4,362,200 141,532 4,275,000 82,825 - - Agricultural 194 .25,156,500 284,619 25,342,400 231,793 128,900 1,289 Cabins 194 452,000 5,687 498,600 4,986 - - Apartments 194 35,228,200 762,709 36,431,600 554,336 - Railroads 194 220,400 5,994 376,000 6,770 - - Total 194 1,848,188,200 30,001,867 .2,119,846,100 23,885,712 120,413,600 1,335,909 Residential 196 347,057,800- 4,457,379 396,693,200 3,977,404 18,207,700 182,077 Commercial 196 5,524,000 170,347 5,706,800 105,399 - - Industrial 196 2,479,800 82,814 2,496,700 49,184 - - Agricultural 196. 2,716,100 30,710 3,400,300 32,538 - - Apartments 196 1,812,000 41,360 1,852,500 30,885 - - Total 196 359,589,700 4,782,610 410,149,500 4,195,410 18,207,700 182,077 Personal Prop 192 1,797,800 61,126 1,938,500 38,770 - - Personal Prop 194 22,354,000 755,892 22,548,700 445,688 - - Personal Prop 196 3,178,800 107,758 3,446,900 68,613 - - Total 2,414,628,100 38,273,103 2,768,068,800 30,881,614 153,923,400 1,671,007 Note: Payable 2002 values as of September 2002. Does not take Fiscal Disparaties into consideration Page 3 City of Lakeville -Dakota County - ISD 194 Estimated Property Taxes on Commercial-Industrial Payable 2002 Total Fiscal State Rates Taxes City Coun School Other Dis arities Tax Tax Capacity 0.97425 0.34920 0.32953 0.2598 0.03568 0.34832 0.600 Market value 0.0011555 0.0000985 0.0010570 1.56497 Tax - Market Capacity Total Fiscal State Value Value Taxes City Coun School Other Disparities Tax 100,000 1,500 2,786 351 322 360 35 818 900 250,000 4,250 .7,854 992 913 984 99 2,317 2,550 500,000 9,250 17,043 2,154 1,986 2,095 215 5,042 5,550 750,000 14,250 26,232 3,317 3,060 3,206 331 7,768 8,550 1,000,000 19,250 35,421 4,479 4,134 4,317 448 10,493 11,550 1,250,000 24,250 44,610 5,642 5,208 5,428 564 13,219 14,550 1,500,000 29,250 53,799 6,804 6,281 6,538 680 15,945 17,550 1,750,000 34,250 62,988 7,967 7,355 7,649 796 18,670 20,550 2,000,000 39,250 72,176 9,129 8,429 8,760 913 21,396 23,550 2,250,000 44,250 81.,365 10,291 9,502 9,871 1,029 24,121 26,550 2,500,000 49,250 90,554 11,454 10,576 10,982 1,145 26,847 29,550 2,750,000 54,250 99,743 12,616 11,650 12,093 1,262 29,573. 32,550 3,000,000 59,250 108,932 13,779 12,724 13,204 1,378 32,298 35,550 3,250,000 64,250 118,121 14,941 13,797 14,315 1,494 35,024 38,550 3,500,000 69,250 127,310 16,104 14,871 15,426 1,610 37,749 41,550 3,750,000 74,250 136,499 17,266 15,945 16,537 1,727 40,475 44,550 4,000,000 79,250 145,688 18,429 17,018 17,648 1,843 43,200 47,550 4,250,000 84,250 154,877 19,591 18,092 18,759 1,959 45,926 50,550 4,500,000 89,250 164,066 20,754 19,166 19,869 2,075 48,652 53,550 4,750,000 94,250 173,255 21,916 20,240 20,980 2,192 51,377 56,550 5,000,000 99,250 182,444 23,079 21,313 22,091 2,308 54,103 59,550 Note 1: Data based on Preliminary tax levies and values. Page 4 City of Lakeville -Dakota County -1SD 194 Estimated Proaerty Taxes on Residential Payable 2002 Total Rates Taxes City County School Other Tax Capacity 0.97425 0.34920 0.32953 0.25984 0.03568 Market Vaiue 0.0011555 0.0000985 - 0.00106 - Tax - Market Capacity Total Value Value Taxes City County School Other 100,000 1,000 807 266 244 271 26 11 D, 000 1,100 925 305 280 310 30 120,000 1,200 .1,043 .344 315 350 34 130, 000 1, 300 1,161 383 351 390 38 140,000 1,400 1,279 421 387 429 42 150,000 1,500 1,397 460 423 469 46 160,000 1,600 1,515 499 458 508 50 170,000 1,700 1,633 538 494 548 53 180,000 1,800 1,751 577 530 587 57 190,000 1,900 1,869 616 565 627 61 200,000 2,000 .1,987 655 601 667 65 210,000 2,100 2,105 694 637 706 69 220,000 2,200 2,223 732 672 746 73 230,000 2,300 2,341 771 708 785 77 240,000 2,400 2,459 810 744 825 81 250,000 2,500 2,577 849 779 864 84 260,000 2,600 2,695 888 815 904 88 270,000 2,700 2,813 927 851 944 92 280,000 2,800 2,931 966 886 983 96 290,000 2,900 3,049 1,005 922 1,023 100 300,000 3,000 3,167 1,043 958 1,062 104 310,000 3,100 3,285 1,082 993 1,102 108 320,000 3,200 3,403 1,121 1,029 1,141 111 330, 000 3,300 3, 521 1,160 1, 065 1,181 115 340,000 3,400 3,639 1,199 .1,100 1,221 119 350,000 3,500 3,757 1,238 1,136 1,260 123 360,000 3,600 3,875 1,277 1,172 1,300 127 370,000 3,700 3,993 1,316 1,207 1,339 131 380,000 3,800 4,111 1,354 1,243 1,379 135 390,000 3,900 4,229 1,393 1,279 1,418 138 400,000 4,000 4,347 1,432 1,314 1,458 142 410,000 4,100 4,465. 1,471 1,350 1,498 146 420,000 4,200 4,577 1,508 1,384 1,535 150 430,000 4,300 4,686 1,544 1,417 1,572 153 440,000 4,400 4,795 1,580 .1,450 1,608 157 450,000 4,500 4,904 1,616 1,483 1,645 161 460,000 4,600 5,013 1,652 1,516 1,681 164 470,000 4,700 5,122 1,688 1,549 1,718 168 480,000 4,800 5,231 1,723 1,582 1,755 171 490,000 4,900 5,340 1,759 1.,615 1,791 175 Page 5 • Ten of the Largest Taxpayers in the City -Taxes Payable 2001 Net Taxpayer Type of Business Tax Capacity Dakota Electric Association Utility $ 400,749 Southfork Apts. Ltd Partnership Apartments 271,657 Muller Family Theatres of Lakeville Commercial 250,208 Grist Mill Co. Food Manufacturing 249,662 Xcel Energy Utility 220,374 Mills Prop. Inc. Retail 214,547 Minnegasco, Inc. Utility 181,644 Fulford Group LLC Warehouse/Distribution 165,865 Merillat Corp. Cabinets 165,100 Hasse Real Properties LLC Commercial 158,041 Total $2,277,847" Represents 6.0% of the City's payable 2001 total taxable net tax capacity. Building Permit Summary Number of Residential Total Permits Dwelling Units Number Value Number Value 2001 (to 11-30) 3,780 $129,688,071 491 $ 100,191,000 2000 4,591 152,564,847 607 106,783,000 1999 3,638 144,337,909 724 124,048,532 1998. 3,158 146,047,986 634 98,542,898 1997. 1,969 83,310,324 350 52,540,479 1996 2,121 113,080,125 463 63,818,676 1995 1,874 78,555,672 462 62,935,416 1994 1,914 75,319,512 509 64,956,193 1993 2,016 100,444,908 699 79,775,057 1992 1,836 101,448,768 697 73,300,664 1991 1,589 74,475,968 596 60,490,159 6 Economic Development Activities The following is a list of commercial/industrial businesses that chose to locate in Lakeville during the past several years: Owner Product/Service Valuation Target Retail $7,500,000 HOM Furniture Retail 6,400,000 Industrial Environmental Concepts Manufacturing 4,620,000 Wausau Supply Distribution center 3,920,000 Lakeville Commons Retail 2,700,000 Anchor Bank Financial Banking services 1,850,000 Carload Connection Distribution center 1,550,000 DR Horton Residential Development 1,500,000 Heritage Commons Retail Center 1,480,000 Ginko Properties Medical/Dental Offices 1,400,000 Ipava Marketplace Retail shopping center 1,242,000 Family Swim School Recreation 1,166,000 Walgreens Pharmacies 980,000 Gateway Office Building Office Building 950,000 Perma Groove Manufacturer 950,000 Edney Manu#acturer 800,000 Perkins Restaurant 700,000 Children's World Day Care 690,000 New Horizon Daycare Day Care 650,000 US Bank Financial Banking services 630,000 Delmar Custom Plastic/Acrylic Fabricator 497,000 M.J.T. Manufacturing 430,000 Degidio Heating Components 428,000 J&J Enterprises Drywall Contractor 407,000 JMA Associates Lighting Distributor 390,000 Northland Collision Auto Body Repair 300,000 - Orthodontic Specialists Orthodontic Offices 168,000 In addition, the following commercial/industrial expansion projects have been undertaken in the - past several years: Owner Product/Service Valuation Applied Power Products Die-Cut Rubber Parts and Hoses $1,813,000 Carload Connection Distribution Center 1,400,000 Crystal Lake Automotive Automotive Repair and Service 1,100,000 Charter Communications Cable Communications 1,100,000 Bracketts Crossing Golf 950,000 Allison Specialty Components Fabricated Metal Products 930,000 Wells Fargo Bank Financial Banking Services 690,000 Imperial Plastics Manufacturing 510,000 Crystal Lake Country Club Golf 500,000 Despatch Industries Industrial Ovens, Heat Processing Equip.. 447,000 QA1 Precision Products Control and Steering Components 400,000 LaFavre Addition Manufacturing/Warehouse Space 400,000- Appro Development Design/Build and General Contracting 370,000 Leo's South Recreational Vehicles 300,000 Advanced Metal Products Metal Stampings 265,000 Design Cabinets Custom Cabinetry 259,000 Schneidermans Furniture Retail 250,000 NU Shapes Construction Custom Cabinetry 210,000 7 GENERAL INFORMATION CONCERNING THE CITY The following chart shows Lakeville's population growth: Percentage of Census Year Population Increase in Population 2000 43,128 73.5°!° 1990 24,854 .68.0 1980 14,790 95.7 Employment As a part of the Minneapolis-Saint Paul metropolitan area, Lakeville's labor market is drawn from many of the surrounding communities; and, conversely, many City residents commute to other areas of the Twin Cities for work. Major employers located in the City of Lakeville are listed below: Approximate Number Emplover Product/Service of Emplovees Independent School District 194 Education 1,120 International Home Food, Inc. Cereal Products 625 Ryt-Way Packaging Dry Food Packaging 367 Menasha Corporation Corrugated Packaging 200 Arden International Kitchens. Frozen Food Preparation 189 Belzer's Chev-Dodge-Geo New and Used Car Dealer 160 City of Lakeville Government 159 Rosemount Office Systems Office Furniture (except wood) 155. Heat-N-Glo Metal Work/Fireplace 153 CarOuest Distribution Center Auto Parts Distribution 130 National Polymers Inc. Plastic Injection Molding 125 Despatch Industries Industrial Furnaces/Ovens 117 Imperial Plastics Custom Plastic Injection Molding 115 ReXam Flexible & Medical Pkg. Unsupported Plastics Film/Sheet 113 Crown Cork & Seal Metal. Cans 106 Source: Lakeville Community Profile, Minnesota Department of Trade and Economic Development, September 2001. Labor Force Data September 2001 September 2000 Civilian Unemployment Civilian Unemployment Labor Force Rate Labor Force Rate Dakota County 222,265 2.8% 217,680 2.8% State of Minnesota 2,836,864 3.4 2,761,054 3.3 Source: Minnesota Department of Economic Security. 2001 figures are preliminary. 8 SUMMARY OF MINNESOTA PROPERTY TAX TERMS Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be appraised at least once every four years as of January 2 of the year of appraisal With certain exceptions, all property is valued at its market value which is the value the assessor determines to be the price the property to be fairly worth, and which is referred to as the "Estimated Market Value." Limitation of Market Value Increases. Effective through assessment year 2001, the amount of increase in market value for all property classified as agricultural homestead or non-homestead, residential homestead or non-homestead, or non-commercial seasonal. recreational residential, which is entered by the assessor in the current assessment year, may not exceed the greater of (i) 8.5% of the preceding year's market value or (ii) 15% of the difference. between the current assessment and the preceding assessment. Limited market valuewill be phased-out over six years, beginning with assessments in 2002, for taxes payable in 2003. Indicated Market Value. Because the Estimated Market Value as determined by an assessor may not represent the price of real property in the marketplace, the "Indicated Market Value" is generally regarded as more representative of full value. The Indicated Market Value is determined. by dividing the Estimated Market Value of a given year by the same year's sales ratio determined by the State .Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the taxing unit and actual selling price. Net Tax Capacity. The Net Tax Capacity is the value upon .which. net taxes are levied, extended and collected.. The Net Tax Capacity is computed by applying the class rate percentages specific to each type of property classification against the Estimated Market Value. Class rate percentages vary depending on the. type of property as shown on the last page of this Appendix. The formulas and class rates for converting Estimated Market Value to Net Tax Capacity represent a basic element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, expressed as a percentage. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area- wide tax base shall. be distributed back to each assessment district. 9 State property tax The new state property tax will be applied to commercial, industrial and cabin property and will generate $592 million in the first year. The state property tax will be increased each year by an inflation factor based on the implicit price deflator for government consumption expenditures. The state property tax will be applied to each commercial and industrial property's net tax capacity. For cabins, the bill provides a tax break, especially for smaller cabins. The tax will apply to 40% of the tax capacity of the first $76,000 of each cabin's market value and to 100% of the tax capacity of market value in excess of $76,000. The base amount of the new state property tax, or the first $592 million, is deposited in the state's general fund. The annual increase in the state property tax due to the application of the inflation factor is dedicated to a new education reserve account. The bill does not specify how the education reserve account funds will be used. - Market Value Homestead Credit The market value homestead credit is equal to .4 percent of the market value of the home up to a $304 maximum credit. The credit is phased-out for home values in excess of $76,000 up to a homestead valued at $414,000. This means that the credit is reduced by $9 dollars for every $10,000 of home value in excess of $76,000. Agricultural Homestead property will also be eligible for a credit equal to 0.2 percent of the first $115,000 of the properties market value, up to a $230 maximum. There is no phase-out of the agricultural credit. . These credits will reduce the taxes that would otherwise be paid by qualifying property owners. The state will reimburse the affected local units of government in proportion to the property taxes levied by each local unit. 10 Class rates Article 3 of the 2001 Omnibus tax bill makes substantial changes to the property tax classification system. The table below summarizes these changes, including the class rates that are applicable for the new state propertytax. 2001 Class Rate Changes Local Tax Local Tax Payable Payable Property Tvge 2001 2002 Residential Homestead: Up to $76,000 1.000% 1.000% $76,000 - $500,000 1.650% 1.000% Over $500,000 1.650% 1.250% Residential Non-homestead Single Unit: Up to $76,000 1.200% 1.000% $76,000 - $500,000 1..650% 1.000% Over $500,000 1.650% 1.250% 2-3 unit and undeveloped land 1.650% 1.500%~ Market Rate Apartments: Regular 2.400% 1.800%2 Small City 2.150% 1.800%z Low-Income 1.000% 0.900%3 Commercial/Industrial/Public Utility: Up to $150,000 2.400% 1.500% Over $150,000 3.400% 2.000% Electric Generation Machinery 3.400% 2.000% Seasonal Recreational Commercial: Homestead Resorts (1c) Up to $500,000 1.000% 1.000% Over $500,000 1.000% 1.250% Seasonal Resorts (4c) Up to $500,000 1.650% 1.000% Over $500,000 1.650% 1.250% Seasonal Recreational Residential: Up to $76,000 1.200% 1.000%a $76,000 - $500,000 1.650% 1.000%a Over $500,000 1.650% 1.250%a Disabled Homestead 0.450% 0.450% Agricultural Land & Buildings: Homestead: Up to $115,000 0.350% 0.550%a $115,000 - $600,000 0.800% 0.550%° Over $600,000 1200% 1.000%a Non-homestead 1.200% 1.000%a 11 Manufactured Home Values -2001 Tax Market Capacity Value Value Ardmor 6,744,600 71,040 Connelly 560,600 6,026 Countryview 7,228,000 75,050 North Creek 3,152,800 33,035 Queen Anne 1,377,000 15,125 Total 19,063,000 200,276 Tax rate 0.20079 Tax levy for manufactured homes 40,213 Estimated collection of taxes 31,851 Page 13 CITY OF LAKEVILLE 2001 GENERAL FUND REVENUES TOTAL $13,355,656 Taxes (44.5%) Other ~ $5,940,205 (6.3%) $844,090 Other Charges/ Services (13.4%) State Aid - $1,785,981 HACA/LGA Licenses/ Inter- (17.3%) Permits governmentl $2,304,281 (14.3%) (4.2%) $565,777 $1,915,322 2002 GENERAL FUND REVENUES TOTAL $14,561,550 Taxes Other (60.2%) (6.6%) $956,448 $8,762,117 Other Charges/ Services (10.5%) $1,530,243 Inter- State Aid - LGA Licenses/ (3.4%) $499,096 Permits governmentl (15.6%) (3.7%) $532,808 $2,280,838 Agenda item ME~~1l~A~QUM TO: Economic Development Commission CC: Robert Erickson, City Administrator. Dauid Olson, Community & Economic pevelopment Director FR: Ann Flad, Economic Development Coordinatoi~'~ . DATE: D®cember 4, 2001 RE: Progress on implementation of Goal #2 afi the 2002-2004 Strategic Plan -Financial modeling with City, School & County. GOAL #2: Flnanclal 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 t~asure potential threw, outcomes, and overall impacts of our efforts to improve financial position of city in future. Chair Vogel, Vice-Chair Matasosky, Community & Economic Development Director Darrid Olson and Economic Development Coordinator Ann Flad met with Superintendent Amo~rvso on November 28, 2001 at the ISD 194 School District offices per the EDC's request from the October EDC meeting. Chair Vage! began the meeting by introducing the EDC's 2002-2004 Strategic Plan for Economic Development, and particularly Goal #2 (see above) of the Strategic Work Pian. According to Chair Vogel, the EDC recognizes the tremendous impact Lakeville's growth has on iSD 194. Goal #2 of the work plan involves creating dialog to achieve common goals and understand each other's fiscal needs and impacts on the community. Superintendent Amoroso concurred with Chair Vogel that the efforts of the City and ISD 194 impact each other tremendously, and tha# increased dialog between the two entities would be beneficial. Superintendent Amoroso also indicated that ISD 194 is beginning to use a fiscal 5-year plan and will be presenting a preliminary budget to their board at their December # 1, 2001 meeting. It was suggested that additional dialog be he[d on the process and factors that influencd each entity's budget. In order to avoid digression into a budget justification session, disccssion of actual budget numbers would be avoided. The dialog is intended to foster greater understanding of the influences that each entity must consider when creating a financial model Superintend®nt Amoroso requested an additional meeting be held wi#h key staff from the Ci#y and ISD 194 staff in order to explain the EDC's efforts and to secure support for ongoing ;dialog. Ms. Flad will coordinate a meeting with the requested people for January, 2002. It was also concluded that discussion with Dakota County would take place at a later date. Agenda Item #:-~~p,~- ~~t~R~?NDUM TO: Economic Development Commission. CC: Robert Erickson, :City Administrator Ann Flad, Economic Development Coordinator FRC?M: David Olson, Community & Economic Development Director DATE::. December 5, 2001 RE: Progress on implementation of Goal #3 of he 2002-2004 Strategic Plane- Infrastructure :GOAL. # 3: Encourage investigst/on of all potential upgrade opportunities In critical "6us~ness Infrastructure" elernerrts -phone, data, and other Infrastructure, to promote positive outcomes for long. term. The City Council at their December: 3,.2001 meeting approved the retention of Sprirtgsted Inc. to complete a study of`the various financing sources available to improve the three interchanges along 1-35 in the City of Lakeville. This was a recommendation of the EDC approved at the October 23, 2001 meeting. Staff will begin working with Springsted on this project soon and will provide periodic updates to the EDC. A copy of the engagement letter from Sprngsted that also outlines the approach. to the study is attached. ' 85 E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN 55101-2887 - ~~,-Uzi-ono F,4 }C: 651.223-3~~,Z SPRINGSTED I,Irio~r; to rla~• Pui+i;r 5~'~t~~r December 4, 2001 Mr. David Olson, Community and Economic Development Director Mr. Dennis Feller, Finance Director City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Re: Interchange Financing Model Engagement Letter Dear Mr. Olson and Mr. Feller. The City has asked us to assist in the evaluation and development of a financing strategy for freeway interchange(s) improvements. This letter is to .describe our .approach and compensation for this engagement. Project Approach A general description of our approach to developing this financing strategy: 1. Meet with City Staff to review project physical and fiscal discussions to-date. • This would include: construction timelines, budgets, any associated or contingent development, etc. 2. Profile potential funding sources, both internal and external, to determine meaningful viability for participation. • This step would profile potential funding capacity and current legal standing. • This step would identify potential funding sources which may not currently exist within the City's financial structure. 3. Establish economic development tools to participate in interchange funding strategy. 4. Meet with City Staff to discuss initial results. 5. Re-examine, as necessary, various funding components. 6. Develop. initial funding strategy; identify viable funding levels, collateral impacts, such as credit rating and revenue rate structures; quantity any deficiencies in funding and public policy questions. Prepare preliminary written report for the City. CORPORATEpFFlCE: SAINT PAUL. MN • Visit our website at WWW.SpringSted.COm DES MOINES, IA • MILWAUKEE. WI • MINNEAPOLIS, MN • OVERLAND PARK. KS • VIRGINIA REACH. VA • WASHINGTON, DC City of Lakeville December 4, 2001 Page 2 7. Review initial funding strategy and report with City Staff. Modify as appropriate. 8. Present Final Report to City, in all likelihood two meetings; first at a workshop-type level and then formally. This process would conclude with the funding strategy. tt is possible that deficiencies and contingent revenue sources may be identified. In certain cases additional legislative or external funding steps may be necessary. While Springsted would be available to assist the City in any way possible, such ongoing activities would be beyond the scope of this project. Likewise, the establishment of certain revenue sources, such as tax abatement with other entities, tax increment financing, special utilities, etc, would be beyond the scope of this project. In similar previous work we have done with other suburban cities, we have found these efforts to be particularly protracted and time consuming as multiple funding sources are explored to determine the- financial, engineering, legal and political dynamics of establishing meaningful financing levels. Compensation We would request our compensation be based on an hourly rate basis with snot-to-exceed amount of $15,000 for the first 12-months. This amount is subject to the review and amendment by the City as the work proceeds. This compensation level is based on five meetings with the City and its staff. Additional meetings or revisions beyond those agreed upon at the review of the initial funding strategy would be compensated in excess of this amount. Our hourly rates are as follows: Position Rate Principal, Senior Officer $180 Officer, Project Manager $150 Senior Associate $125 Associate $110 Support $ 50 We would request reimbursement for any related out-of-pocket expenses incurred in the delivery of these services. Conclusion The funding of freeway interchanges relying on predominately local revenues is an extremely challenging process. The costs of these improvements are very large, and therefore the dynamics of establishing meaningful revenue sources and levels are often intense. City of Lakeville December 4, 2001 Page 3 Springsted has been involved with, if not all such improvements in the Metropolitan Area, then by far the overwhelming majority. We trust this experience can both add to the efficiency of moving through this process and better tailor the final result to reflect Lakeville's objectives. We would welcome any questions on this letter of engagement. We appreciate the City of Lakeville's confidence in us to work with them on this project. - Re pectfully, ~ David N. MacGillivray Chairman sja Agenda Item MEMQRAN~~IJM TO: Economic Development Commission CC: Robert Erickson, City Administrator David Olson, Community & Economic Development Director FR: Ann Flad, Economic Development Coordn~lo~r'"~~'~ ' DATE: December 4, 2001 RE: Progress on implementation of Goal #3 of the 2002-2004 S#rategc Plan - Infrastructure GOAL # 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. Exploration of the telecommunications side: of infrastructure continues. On November 15, 2001, the High Tech Subcommittee met with two potential service providers: AT&T and Qwest. The summary of those meetings are attached for your reference. Additionally, on November 28, 2001 a meeting was held at City Hall with Dakota County Technical College and City of Lakeville staff. Those present from Dakota County Technical College included Dr. Ron Thomas, President; Bradd Strelow, Director of Technology & Innovation; Charlotte I~odner, Co-Director of Educational Services; and Gary Hebert, Dean of Customized Training & Technology. City staff present included Robert Erickson, City Administrator; David O'Ison, Community & Economic Development Director; Ann Flad, Economic Development Coordinator; and Jeff Lueders, Cable. Coordinator. The purpose of the meeting was to discuss Dakota County Technical College's desire to create an increased presence in Lakeville and to begin discussions on the opportu ities to create a presence in the community. Mr. Erickson provided DCTC staff with information regarding the dynamic growth of Lakeville and information from the 1999 Decision Resources survey describing several of the demographic characteristics of the Lakeville population, Dr. Thomas indicated that DCTC educates approximately 2,500 students in certificate-and associate programs, and trains an additional 10,000 people per year through customized training partnerships with area businesses. Lakeville is an ideal location for DCTC to offer additional services due to its rapid growth and the projected .population in the future. ..Agenda Item Mr. Strelow shared.. information on DCTC's newest endeavor, a 17;.000 sq. ft. telecommunications training. center and central office switch located. in Eagan. The center was created. through creative partnerships including AT&T Broadband. and Nortel Communications. Mr. Erickson indicated there is a substantial population in Lakeville whose children are grown and who are looking for additional personal growth and educational opportunities. Additional y, the senior population in Lakevil a is also interested in educational opportunities and technology. lSD 194, a potential Cathodic High Schoo , a proposed Charter School and a possible Community Recreation Center may all present additional opportunities for DCTC in Lakeville.. Mr. Erickson also reiterated the City of Lakevilde's interest in working with DCTC to enhance opportunities in Lakeville. A potential site for DCTC to utilize is the Aptus building located at 21750 Cedar Avenue. Fiber runs near this site, and there is additional land adjacent to the site which could potentially be developed as a High Tech Business Park. Ms. Flail. will arrange for Dr. Thomas to meet with the owners and tour the building. Additionally, the City's High Tech Subcommittee wild consider holding their January High Tech Subcommittee meeting at DCTC's High Tech Facility in Eagan; HIGH TECH SUBCOMMITTEE NOVEMBER 15, 2001 MEETING SUMMARY The High Tech Subcommittee met on November 15, 2001 at 6:00 p.m. in the Lake Marion Conference Room of City Hall. Present were members: Bob Brantly, Dick Miller, Doug Thompson, and Robin Selvig. No members were absent. Others present included: David Olson, Community & Economic Development Director; Ann Flad, Economic Development Coordinator; and Jeff Lueders, Cable Coordinator. QWEST: Mike Hammill, Rick Bayliss, and Dave Fidelman from Qwest were present to discuss their company's offerings and potential ability to provide service in Lakeville (see attached presentation.) Discussion ensued about the potential for Owest to provide more bandwidth in the City of Lakeville. Because of the specific anti-trust laws that govern the operation and competition of "Baby Bells" (of which Qwest is one), Qwest indicated there are serious hurdles to them suggesting any solutions for Lakeville. While Qwest cannot suggest any actions to be taken in Lakeville, the subcommittee can formally propose courses of action to which Qwest can respond. Additionally, because of the anti-trust stipulations, Qwest can lay fiber in Lakeville as a contract service but cannot own or manage that fiber. The subcommittee and Qwest determined that the following actions could be undertaken to further access to Qwest's network: • Short-term: The subcommittee could work with Dakota. County to determine how they aquired Qwest service for the library. Specifically, Lakeville could explore how to "buy transportation" and/or "pay milage" for service. • Medium-term: The subcommittee could facilitate a conversation between Qwest and .Charter (who already owns infrastructure in Lakeville.) • Long-term: The subcommittee could lobby the Public Utilities Commission (PUC) to alleviate some of the challenges imposed by Rule 271 (describe.... What this is.) AT&T: Cameron Turner and Pat Yost of AT&T were present to discuss AT&T's ability to provide infrastructure and/or service in Lakeville. Following a brief presentation on AT&T, the subcommittee discussed Lakeville's needs. The following points were discussed: • AT&T depends on the Local Exchange Carrier (Frontier in Lakeville's case) for fiber infrastructure and copper. • Businesses can use services other than fiber to accommodate their needs, such as NxT1 (up to 12 meg, or 8 T-1's) on copper. • AT&T does not have local service, however they can provide local service over long distance {T-1). • AT&T does have high speed Internet access. • Mr. Turner and Mr. Yost will work on Airlake News article to help businesses understand some of their options, and provide information for Lakeville's recruitment literature. • AT&T can give classes to businesses on telecommunications options. • Lakeville can work with AT&T Broadband and Dakota County Technical College. • Lakeville can explore whether there is opportunity for AT&T to use Charter's fiber. The meeting was concluded at 9:50 p.m. Agenda Item MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Development Coordinator g' f FROM: David L. Olson, Community & Economic Development Director DATE: December 5, 2001 RE: 2002 CDBG. Application The City Lakeville recently received materials from the Dakota County CDA regarding the 2002 CDBG application process. While the exact funding amount from HUD for the Community Development Block Grant (CDBG) program in 2002 is not known, it is anticipated the City will receive approximately $103,691 in 2002. Use of these funds is contingent on the City submitting and receiving appr~aval: of an application that identifies activities that meet the one of federal objectives of the CDBG program. These funds would be available for expenditure sometime after July 1, 2002. During the past two years, the City has approved the expenditure of CDBG funds for two different activities. The first activity was the Downtown Code Improvement Grant program to complete necessary code improvements for buildings in the downtown. This was funded with $70,000 of the 2000 CDBG grant amount. This funding resulted in a $70,000 grant to correct building code deficiencies for the Smith Dental building. This work was successfully completed earlier this year and the grant was distributed. to the. Smiths on a reimbursement basis. The second activity that has been funded in the past two years is the proposed purchase of the Wren property on 210th Street for the development of Low and Moderate Rental Townhouse project. This project received $34,819 in 2000 CDBG funds and $109,316 of the 2001 CDBG grant. This project has not proceeded and is pending the resolution of .environmental cleanup issues associated with the site. Based on the success of the renovation of the Smith Dental Building storefront, it is the recommendation that additional CDBG funding be made available for this activity. John and Jerry Enggren, owners of the Ben Franklin store building, have indicated a desire to make improvements to the storefront of their building. The marquee for this building has supports located in the street right-of-way. This is no longer permitted under State Building Code and thus improvement to this storefront to eliminate these supports corrects a major building code issue. A copy of the proposed design of the Ben Franklin storefront improvement is attached. This design is consistent with the Historic Fairfield Downtown Lakeville Design guidelines. The Enggrens have indicated interest in participating in the Downtown Code Improvement Program. The program would offer a grant not to exceed $70,000 and would require the Enggrens to contribute an amount equal to or greater than the amount of the grant. Assuming that the 2002 grant amount is approximately $103,691 and .the storefront improvements to the Ben Franklin store were funded at the maximum level, there would be a minimum of $33,691 for grants for an additional. building(s). A copy of the proposed Downtown Code Improvement Program Guidelines that were prepared last year is attached. It is the recommendation of staff that EDC consider a recommendation to the City Council to submit an application for 2002 CDBG funds to be used to continue to fund the Downtown Code Improvement Program. if the City Council approves this activity for the 2002 CDBG funds, a grant agreement with the Enggrens and any other property owner participating in the program would be brought to the EDC for consideration at a future meeting. Dakota County Community Development Agency M E M O R A N D U M DATE: December 5, 2001 To: Dave Olson City of Lakeville FROM: Lee Smith - RE: FY 2002 CDBG Program cc: Dan Rogness We have been informed that the FY 2002 Community Development Block Grant Program funding for Dakota County will be $2,058,000. The allocated amount for District 4 will be $304,080, and Lakeville's share of this will be $103,691. Decreased funding nationally, more set-asides of CDBG funding prior to allocation to grantees, acid increased costs of administering the program have combined to bring about nearly a 5% reduction from the 2001 allocation amount. At this time we also want to advise you of a new policy recently announced by the Department of Housing and Urban Development relating to the requirement o expend CDBG fiends in a timely manner. As you may recall, CDBG grantees are allowed to carry over no more than 1.5 times the prior year's grant amount from orce Program Year to the next. In the past HUD has not penalized grantees failing to meet this standard only by requciring that they develop a plan and enter into an agreement as to how to improve their spend-down rate. Effective in 2002, HUD will actually reduce the next grant amount for any grantee failing to meet the timely spending requirement when it is tested 60 days prior to the end of the grant year. For example, if Dakota County failed to have expended enough CDBG fiends so that the balance of unexpended CDBG funds allocated to the Coumty was less than the required ievei at the end of April, 2002, HUD would reduce the 2002 County funding by 21%. We do not believe that Dakota County's program is in danger of being penalized for the 2002 Program Year. However, the imposition of this immediate financial consequence for failing to expend funds in a timely manner does pose a threat for ficture funding, unless all Dakota County CDBG Program users make a diligent effort to select projects that wil-1 be able to proceed in a timely manner, and promptly request funds when expenses are incurred. Please call me at (651} 423-8113 if there are questions or comments. 2496 145th Street West • Rosemount, MN 55068 tel 651-423-4800 fax 651-423-1273 TDD 651-423-8182 b City of Lakeville Community Development Block Grant. Downtown Code Improvement Program Guidelines In a continuing effort to support businesses and property owners in downtown Lakeville, the City of Lakeville applied for and received Community Development Block Grant (CDBG) funds for the purpose of upgrading the condition of buildings in downtown Lakeville. Specifically, funds will be made available to offset the cost of code improvements made to buildings that are being .renovated in accordance with the Historic Fairfield Downtown Lakeville Design Guidelines. The CDBG funds have been made available to the City of Lakeville through the Dakota County Community Development Agency (CDA) on behalf of the. federal Department of Housing and Urban Development (HUD). Projects which receive CDBG. assistance are therefore required to meet HUD requirements. The following policies and procedures have been adopted for code improvement projects undertaken with CDBG dollars in the City of Lakeville. These policies are subject to change as recommended by the Dakota County Community Development Agency and/or the federal Department of Housing and Urban Development. Program Purpose: To provide financial assistance to property. owners who are undertaking the restoration, preservation or .improvement of downtown buildings, historic preservation; and/or elimination of slums and blighted conditions. Type of Assistance: Commercial CDBG Grant Design Guidelines: All code improvement projects must be conducted in conjunction with a storefront improvement project, which conforms to the Historic Fairfield Downtown Lakeville Design Guidelines. Program Objectives: The Lakeville Code Improvement Program is undertaken to meet the objectives of: a) Providing financial assistance for property owners to correct. certain health, safety or other deficiencies; .and b) Eliminating blighting influences and preventing further deterioration of .commercial properties; and c) Preserving properties of historic value; and d) Encouraging exterior improvements that comply with the Historic Fairfield Downtown Lakeville Design Guidelines. Projects will be chosen for participation in the program based upon the degree to which they meet program objectives. Priority will be given to properties with historical significance. Eligible Recipients 1. The recipients must individually or in the aggregate have at least 1) a one-third interest in the fee title, or 2) a one-third interest as purchaser in a contract for deed with respect to the structure to be improved. 2. All individuals having an ownership interest in such structure must join in the application and sign the Grant Agreement with the City, including contract holder. 3. Leaseholders are eligible to make application for CDBG funds. The Lakeville City Council on a case-by-case basis will review such applications to determine their eligibility for funding, based on the length of the lease on the property. The property owner must join in the application and subsequent requirements.. 4. Projects that would result in permanent displacement of either residential or business tenants will not be financed with CDBG Program funds. Any temporary displacement of tenants resulting from project activities shall be the responsibility of the property owner. Tenants shall be fully informed of the project plans, and the expected impact on them, and shall receive a Notice of Nondisplacement or Displacement, as appropriate, prior to the start of rehabilitation. Property owners will be required to provide relocation assistance to tenants as required under the Uniform Relocation and Real Property Acquisition Policies Act of 1970. 5. No member of the governing body of the locality and official, employee, or agent of the local government who exercises policy, decision-making function or responsibilities in connection with the planning and implementation of the Rehabilitation program shall directly or indirectly benefit from this program. This prohibition shall continue for one (1) year after an individual's relationship with the local government ends. Any potential conflicts of interest under Minnesota Statues 412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570, Uniform Administration Requirements, shall be evaluated on the basis of a legal opinion to be requested from the Lakeville City Attorney. Program Definitions Program Administrator: The. Program Administrator shall be the Dakota County Community Development Agency (CDA), 2496 145th Street West, Rosemount, MN 55068, Phone (651).423-4800. Staff shall coordinate all aspects of the Program. Applicant: Any person seeking to obtain rehabilitation assistance under the terms of this Program. Building Inspector: The Building Inspector for the Program shall be an employee of the City of Lakeville and shall provide technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished. Project Coordinator: The Project Coordinator for the Program shall be an employee of the CDA and shall provide assistance and management relating to improvement activities. The Project Coordinator is responsible for program marketing, application. intake, scheduling of inspections, preparation of contracts and grant documents, and processing of payment requests.. The. Project Coordinator serves as the contact person for rehabilitation from application to project close-out and shall be available during regular business hours. Target Area: Part of the central business district as delineated on the attached map. Eligible Improvements: Health and safety code violations, and/or structural/mechanical systems deficiencies (faulty wiring, fire exits, handicapped accessibility, etc.) Special Conditions Contractors:. All code compliance work undertaken with CDBG funds .must be completed by bona fide-contractors who are licensed and provide proof of insurance. Historic Properties: Each project will be submitted for review following the procedures outlined by the Minnesota Historical Society. If the structure is listed or eligible for listing individually on the National Register, or within the boundaries of, or immediately adjacent to, a historic district which is listed or eligible for listing on the National Register or the unit was originally built prior to 1950, the property will be evaluated for historical significance by the State Historic Preservation Officer. If it has been determined that the property is listed on the National Register or considered eligible to the National Register, a review of the proposed rehabilitation work is necessary, and the work must be in conformance with the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Davis Bacon Wage Rates: All contracts in .excess of $2,000 that will be funded through the CDBG program require compliance with the Labor Standards Provisions of the Davis-Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by the Department of Labor. Appropriate wage information .must be provided prior to the release of funds. Fair Housing & Equal Opportunity The City of Lakeville will work affirmatively to ensure that all persons, regardless of race, color, creed, national origin, sex, religion, marital status, age, handicap, familial status or reliance on public assistance will be treated fairly and equally for purposes of participation in the Program. Access to program information and materials will not be .denied to any person for any reason. The City will encourage the participation of women and minority-owned businesses and local businesses and suppliers who meet Section 3 Criteria. Lead Based Paint The City will conform to .the requirements of the Residential Lead Based Paint Hazard Reduction Act of 1992 for any assisted property that contains residential dwelling units. All program applicants must provide notification of the hazards of lead based paint to impacted tenants. The Building Inspector shall inspect for defective paint surfaces at the time the property is being inspected for code compliance. All defective surfaces will be corrected in accordance with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices. Additionally, contracts for rehabilitation work will include language explicitly prohibiting the use of lead based paint. Data Privacy All information provided by applicants under the Lakeville Code Improvement Program shall be maintained in accordance with the Minnesota Data Practices Act and the City's Subgrantee Agreement with the Dakota County Community Development Agency. Procedures Application and Selection Procedures All property and business owners in the Special Service District of downtown Lakeville will be encouraged to apply for CDBG funds through the Lakeville Code Improvement Program. Parties will be notified by mail of the availability of funds and interested parties will be encouraged to submit apre-application form. Applicants with projects determined to be eligible based on pre-application information will receive an invitation to submit a full application and will receive all subsequent correspondence. Application Intake Applications will be selected for participation in the program based upon applicability to the program guidelines on a first-come, first-serve basis. Applications will be evaluated based on the following: 1.) Whether the app{icant has clear title to the property to be improved. Prior to project approval, the following will be ascertained: a.) Title verification; b.) All real estate taxes are current; c.) All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2.) The extent to which the project meets the program objectives; 3.) The degree of the project's overall impact on the target area. Projects that involve permanent displacement of either residential or commercial tenants or that are not financially feasible within the constraints of available funding will be eliminated from consideration. Property Inspections Upon determination that a property owner applying for rehabilitation assistance is eligible based on the program guidelines, the Building Inspector shall conduct an inspection of the property to determine the corrective actions necessary for the property to conform to Lakeville code standards. l Scope of Work The Scope of Work will have two (2) components: 1.) Upon completion of the initial inspection, the Building Inspector shall prepare a report indicating the work necessary to bring the property into compliance with Lakeville codes inclusive of the Minnesota Energy Efficient Standards. This report, and any improvements deemed necessary by the Project Coordinator for the project to satisfy the intent of .the Program, shall be included as a part of the Scope of Work. 2.) The property owner shall provide. a report or elevation drawing indicating the planned exterior improvements. This report will be reviewed by the City of Lakeville for compliance with the Historic Fairfield Downtown Lakeville Design Guidelines. Project Approval The final application will be reviewed by the City of Lakeville, including the Economic Development Commission and the City Council. Improvements approved for CDBG funding will be based on the severity of the correction needed and the ability of the applicant to complete the project with CDBG funds and private funds if necessary. The Dakota County Community Development Agency will determine final approval Verification of availability of private funds will be required before final approval of the project. Competitive Bidding A minimum of two (2) competitive bids must be obtained for each improvement project the applicant proposes for CDBG funding. At the discretion of the Program Administrator, a single bid that. has been determined to be reasonable by the City's Building Official may suffice. Applicants may use any contractor they choose, as long as the contractor. meets the requirements listed below. All contractors must provide a Certificate of Insurance Coverage. Contractors must also certify that they will comply .with the requirements of the Davis-Bacon Act. These rates will be provided to the applicant as a part of the contractor's instructions. Awarding Contracts The contract will be between the applicant and the contractor. The contract awarded to the lowest bid unless one (1) of the following circumstances occur: 1.) The bid is determined to be unrealistically low and the contractor agrees to withdraw the bid; 2.) The contractor has failed to follow the procedures as outlined in the instructions to the bidders; 3.) The owner does not want the low contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. 4.) There appears to be collusion. between two (2) or more contractors, in .which case, all bids in the questionable trade category will be thrown out and different contractor's solicited for bids; and 5.) The contractor fails to bid according to the specifications, and it proves impossible to compare that contractor's bid with the other contractors'. Approval by City Council Once the applicant has accepted a bid, staff will prepare the information for presentation to the Lakeville Economic Development Commission and City Council. Upon City Council approval, a Grant Agreement will be signed by the applicant and a designated city official. This Agreement will outline the terms and conditions of the project, including the City's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed A preconstruction conference will be held with the Program Coordinator, the applicant and contractors and subcontractors to ensure awareness and compliance with Davis- Bacon requirements and any other requirements necessary to begin the project. A notice to proceed will be issued after the preconstruction conference. The contractor will normally have one (1) year in which to complete the awarded contract. Change Orders All change orders to the current contract require the approval of the Project Coordinator as well as the signatures of the owner and contractor. Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the owner and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable State law. CDBG funds shall not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Lakeville and the Dakota County CDA and their respective officers, employees, and officials from any damages or liability arising from,. or occurring as a result of, the activities funded through this Program. CDBG Payment All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the owner and the City of Lakeville. Payments will be made only after all interior code improvements and exterior. work is completed according to the authorized scope of work and has been accepted by the owner. A Completion Certificate will be executed by the owner and the contractor, and submitted to the City. Payment may be made directly to the contractor, or in reimbursement to the owner, upon presentation of paid receipts for approved work. No advance payments of CDBG funds shall be made for any reason. r The following must be presented to the Project Coordinator in order to process payment: 1. Billing Statement/Paid Receipt 2. Sworn Contractor's Statement 3. Completion Certificate 4. Weekly Payroll Reports Private Financing Applicants are responsible for all costs incurred for storefront improvements, the difference incurred as a result of not accepting the lowest bid, and costs above and beyond the availability of CDBG funds as outlined in the Grant Agreement. Applicants shall contact a lending institution of their choice to arrange financing for their portion of the project. Applicants should request a letter of credit or other suitable documentation from the lending institution to prove that private funds have been committed. This letter is to be submitted with the completed application. If an applicant is not using a lending institution, other evidence of committed funds must be presented at the time of application. Escrow The property-owner may be requested to establish an escrow account or other private account for deposit of the private funds that will be used to complete the improvement project. The CDBG funds shall be reserved on the Owner's behalf by the Dakota County CDA, at the time of execution of the MOA, but shall be drawn from the U.S. Treasury only when actually needed for disbursement to contractors or vendors, or in reimbursement to the Owner. Appeals Process Appeals concerning eligibility for the code improvement program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The Coordinator will contact the applicant and attempt to rectify any concerns. A written response will be made within fifteen (15) days. 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I ~ r'~ ~ ,~r I ~ ~j i ~ I I I ~ ~k { t r a f-_-„-~ 'fah ! ~ J I f C' I _ , , r~~~, , ,G ~I,!fCr - r n r " 1~ flGl - I 1 IV ~ I I _ Iii ~ - Q ~ IIII i~~r F-~ ~ I I I . li it , r~ it 11 }il}iii ; ti .ll. ± ~If1. ll , I; tt Ill r~ll'fl~'V~II I{I' f': `{r~l ? r.eil I. >;H AD nZG S"rN ~n .-IQ,i m~ nm_ ~+A rnKm rr~rl rr .rlll. ~Irr.~lr.rrv l.Itl n. .err 1'.11: I: . _ - - - Jeanne Poepl ~p'~ Special Projects Director ¦ ~ Direct: (612) 6- 20 S~ Pain 33 9 5 Fax, (612)339-5806 M A G A 2 1 N E email jpoepl n'mspcommunications.com December 10, 2001 Robert Erickson City Administrator City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Dear Bob: Great! We have a deal, and eventually, a special section on the City of Lakeville in the August issue of MPLS. ST.PAUL Magazine. This is a wonderful opportunity to feature Lakeville's "community personality" in the most widely read twin cities' lifestyle magazine. Enclosed is a Publishing Agreement -this solidifies the deal. You will note that Lparsed the sponsorship accordingly 2/3 - 1/3 ratio. ($15,000 is the total sponsorship fee; The Avalon Group. has agreed to pay $10,000). Sponsorshipsfor aspecial section such as this in our Magazine, are limited to two partners in order to garner the most editorial space absolutely possible. Down the road...as in late spring, we will re-group with The Avalon Group to discuss editorial lineup etc. At that time I will provide advertising deadlines, request City information and photos etc. In the meantime, enclosed are two copies of the Publishing Agreement; please sign one copy and return it to me by December 18, 2001; the other copy is for your files. I'm really looking forward to working with you, Bob, and all your staff, to make this a publishing project you will enjoy being a participant in. MPLS. ST.PAUL Magazine will make Lakeville a star! Sin~erely, 1 ~eafift~e~oepl 'b~ ector of Special Projects LS. ST.PAUL Magazine Enclosures nos COmmU1YCi1tId1S 22o South Sixth Street, Suite 500 • Minneapolis, MN 55402(612)339-7571 • Toll free (Soo)788-0204 • www.mspcommunications.com PUBLISHING AGREEMENT FOR A SPECIAL SECTION IN MPLS.ST.PAUL MAGAZINE December, 2001 MPLS. ST. PAUL Magazine is pleased to have the City of Lakeville as a co-sponsor with The Avalon Group, of a special section in the August, 2002 issue on behalf of the City of Lakeville. BID SPECIFICATIONS: Section Size: 16 pages Trim Size: 8 X 10 718 Color: 4 color throughout Ad/Edit Ratio: 60/40% Quantity: 95,000 (85,000 inserted in the Magazine; 3,SOOoverruns for the City of Lakeville, 6500 overruns for The Avalon Group) SPONSORSHIP BENEFITS: • 1/3 page, four color ad for City of Lakeville(sponsor provides); back cover of special section; may wish to collaborate with The Avalon Group) • sidebar/letter from sponsor talking about commitment to City • special section listed with sponsor recognition in the MPLS.ST.PAUL Extra page (table of contents page for special sections) • 3,500 ovemins of the special section (additional overruns maybe purchased at $225/M) • City of Lakeville logo on the cover of the special section EDITORIAL, ADVERTISING, PRODUCTION, DELIVERY: MPLS.ST.PAUL Magazine will be responsible for editorial planning, story assignments, copy editing and proofing, art direction, illustration, layout, typesetting,. advertising sales, ad production, (any cost charged to advertisers), ad trafficking, ad billing and collection, pre-press (seps, stripping), printing, coordination of special sections insertions and one bulk delivery of overruns. PAYMENT: Based upon the specifications, the publishing fee for the special section is $S,000net. The fee will be invoice on June 15, 2002. This agreement shall not be amended except by written agreement between the City of Lakeville and MPLS.ST.PAUL Magazine. If this is agreeable, please indicate by signing both copies, and returning one to me. Thank you. ~ / Robert Erickson J atine Poepl i City of Lakeville PLS. ST.PAUL Magazine .r .::9' The Metro East Development Partnership has moved GVA Marquette Advisors recently released information into its new offices in the 401 Robert Building in on rental rates in the Twin Cities. Average rents for atwo- Downtown Saint Paul. MEDP is sharing space with the bedroom apartment in the East Metro ranged from a low of Saint Paul Area Chamber of Commerce, the Transportation $702 in the Stillwater/Oak Park Heights area to $1,029 in Management Organization and the Saint Paul Jaycees. The Woodbury. In the City of Saint Paul, average rents went new address is 401 North Robert Street, Suite 150, Saint from $753 on the East Side to $1,165 per month downtown. Paul, MN. 55101. All telephone numbers, fax numbers and email addresses remain the same. Musictech College of Music and Recording Arts has purchased the former Science Museum East Building MEDP will be holding its quarterly board of directors from the Saint Paul HRA for $1. The building is now meeting this Thursday, November 8, in the new undergoing a $3.6 million renovation and build out. When conference and training center. Agenda items include the the building opens in January, Musictech will occupy 60,000 2002 Budget, an update on the strategic planning process, square feet. The Great American History Theatre will and a discussion on membership strategy. continue to occupy 14,000 square feet in the facility. There will be a celebration recognizing the opening of There will be a celebration dinner for Saint Paul Mayor the new Chamber of Commerce Center on Thursday, Norm Coleman on Wednesday, November 28 in the River December 13 from 4:30 to 7:00 p.m. The grand opening Centre Grand Ballroom. The event will begin with a will feature food, beverages, presentations, celebrities and a reception at 5:30 p.m., dinner at 6:30 p.m., and a program at host of other activities. Invitations will be going out later 7:00 p.m. Persons interested in the event should contact the this .month. Please mark your calendars and plan on Capital City Partnership at (651) 291-5608. attending this special event. The City of Cottage Grove announced three new Tuesday, November 6, 2001, is Election Day. There are additions to their industrial park. Advance Corporation many important things to be decided, including several will be occupying 44,000 square feet of new space on 6.6 school referendums throughout the East Metro. Also on the acres. The firm manufactures corporate recognition awards slate are many mayoral and city council elections, and a and interior signs. Tradehome Shoes is building a new number of school board elections. Please remember to vote 70,000 square foot facility on 4.13 acres. The facility will for the candidate and/or issue of your choice. It's not just a house office and distribution functions. American AGCO right; it's a responsibility. Corporation is building an 81,000 square foot building on a 5.9-acre site. The facility will be a distribution facility for the pet food supplier. The Metro East Broadcast is a monthly communication from the Metro East Development Partnership. We would like to share your news with other members of the Partnership. Please send your press releases to: 'Ml~~~;=~~sv~ ~n'`his new position as Community Development Director for the City of Lakeville. David will begin his new position later this month. He leaves a similar position in the City of MEDP Farmington. ~ 401 North Robert Street, Suite 150 w- Saint Paul, MN 55101 MEDP is working with the members of Cyber Village in (651) 224-3278 fax.(651) 223-5484 an attempt to solidify the high tech group. In the recent WWW.medp.Org labor market analysis, information technology was ' identified as a key industry for the East Metro to target. The Cyber Village is a group of IT firms that meets informally to discuss issues that affect them all. MEDP hopes to utilize this group to answer questions IT prospects may have about the region, and to promote further growth within the IT industry. r ~/_1..... TT T__.. V /l _~..L /~1 nun-el-peel n7 ~ 11 i u5r'y t t riuly i uuritKr b12 1161 9632 P. 02/02 ~ ~ • ~r~ { Q REA1: ESTATE RESEARCH Ct~SE STUDIES October, 2041. ~?~~~R~AB~.E HC~.I~S~NG ~RtT1CJ4~ ECCaN~MIC B~EVELC~PMEI~w6" ~cel~ The lack of affordable housing has accommodate new economic emerged as one of the most critical growth which will require housing ~ issues facing tt~e Twin Cities, While construction for workers moving Research S individual cases of persons unable here from outside the region. Insight to find housing are well documented, very little is known While the development of workforce about the impact that .the lack of housing has been limited during the Maxfield Research has over 18 years affordable housing has on the Twin last decade, we found that the of ~cperienoe In market research. Cities' economy. t.ast year, private market would have strong The expertisewe have gained Maxfield Research began a Joint Interest in addressing this shortage throughout the years enables ue to study with CVA Marquetl~e Advisors if it were Financially feasi~s. tf there offer solutions to the many issues eocamining the relationship between was a greater finanaal commitment c~'ties & devebpers fie. The housing that is afforclable to the from both the public and private relatlonshtp we develop with our typical worker in the Twin Cities sectors to develop this housing, it clients is a an~icel component to the (termed "vvoricforce housing") end could lead to a tremendous gain for sucroesa of our approad~ to housing the ongoing vitality of the region. the regional economy. researrh and allows us to serve as a The study, . titled Workforce source of dlredton and krformation Housing: The Key to Ongoing Devoting money to housing Is an during devdopntint end ptonning. Regional Prosperity, has been inve_~tment that lasts for decades. completed and can be found on the Housing construction brings new Our involvement In .the housing Internet at wvvwfhfund.org households into a market, helps industry allows us to support our employers more easi{y attract oflenls wl~ valuable Information The study found that most of the workers and creates a larger base regarding regulsY~ons and industry current job openings and the of consumers for retailers. Onos news Ihat affect planning and majority of existing jobs in the Tvdin the task of construction itself is development. Clues pay workforce wages or done, these benefits last as long as We also have the Inslghl to below. The Twin Cities' economy the units are maintained and determine viable ~lutions to the depends to a great extent on desirable to the market. issues inherent to ptaru~iny for workforce housing construction. The current situation in th® Since t9e3, Miaxfieldhasbeen helping growth. We provide research for atlas end mc?n/clpalit/as throughout the smart development workforce housing market - a low upper rrridwes plan to meat thou vacanc rate low housin housing weds. If you wcutd like Y ~ g inromretion cn Irow MsxBe/d earl lrelp If you do not wish fo recelvs future production levels and rapidly-rising you mak+e~yvur a/anning declsians. or Gf naw5lalt~ cr!! lhoy shou?0 bo s+aM to ou wou /Ice o bfl ©xcludod from housing costs -leaves the Twin ~urare editions orr tieaxfex, contact Jay others inyaurorganrrtivn,p/easa Cities in a poor position to ThompsorestBf2.904.T9T3. oortMat 1/~cki Perlde of 6128D4.70ti7, Matxfield tteseardt Inc. 615 Firn Avenue NE Suite Boa ~ Minneapolu, MN 55413 Rhone 612.338,0012 foK 612,338,787fi TOTAL P. 02 NOU-01-2001 08 55 612 861 9632 P.02 ;,xs~ _ , ~ 5-DIGIT 55044 iBXNMVRH ~*~t~r~tit M: Qm._ iEgIEC0195N099 61490156 YY CITYROFELAKEVIN MAY 17 02 20195 HOLYOKE AVE 10093 LAKEVILLE MN 55044-90~: ti~,~ ~ ~,t3~:k L, 2nf)l • ly.'v~ ~.,~;~:R Zz The Business Journal X1.75 http://twincities.bcentral.com ~ _ ~ a or oe W 3 ~r • a z ~o ose in s e By Sam Black tt • - ~ ~ M iXed- . Staff reporter .Burnsville city leaders USe 'village' also plotted have unveiled plans for a new 500-room, full-serv- If constructed, it would be ice hotel, surprising local one of the five .largest hotels in hotel developers who pre- the metro area ranked by number dict the weak hospitality of rooms and suites, and second industry will make financing only to the Radisson South Hotel hard to get. & Plaza Tower in Bloomington Plans include a 2t),[?()0- among suburhan hotels. square-foot conference center, City economic development four restaurants, retail shops, a director .Ludy 'Tschumper said .1,200-scat-ballroom and a the development team, a group water park. It would cost about of~ Burnsville and Arizona $60 million to build, real estate inveskors whom she would not sources estimated. identify, expects to affiliate with <i full-service hotel brand. T7~e Burnsville economic develop- developers will be identified ment director Judy Tschumper when formal plans are filed said a culinary school is BURNSVILLE to page 36 planned. 36 CityBttsiness November 2, 2001 http://twi ncities. bcentral.com B ~ R N S r' L. ~ E ~ # airport or in downtown, Burnsville isn't an from page 1 obvious choice for afull-service hotel, • Dubbs said. Re l Ant s with the city in the next few weeks. The size of the proposed conference p The hotel is one of several components ~'3- facility and ballroom would generate some ~06.~ planned on a 38-acre redevelopment site of its own mazket and there is always amar- Of CityBu$IneS$ for sx?uth« known as Burnsville's Heart of the City, Hotel, mixed-use ket in social events such as weddings, Dubbs v._ Tschumper said. 'village' eyed for said. artlele$ are... Another large piece is the $35 million 38-acre site. "There's nothing of.this scale or magni- ~ mixed-use Grand Market Place, proposed by ,3sw, a tulle and this would certainly be the feather INFORMATIVE for Minneapolis-based Sherman & Associates ~ ~ in the cap of Burnsville to have a facility like clients and Inc. and Burnsville resident Ron Achterkirch. ~t~ = that," he said. colleagues a~,,,,,,... It would be a "European-style village" with a Peter Blyth, president of Radisson culinary school, two restaurants, 28,000 Bi~IthlatftlrLE_ Development Worldwide in Plymouth, who PROMOTIONAL for square feet of retail space, 108 apartments - - - wasn't familiar with the ro sal, said it p po prospective and 76 owner-occupied housing units. the market value of the new projects at more would be some time before the hotel could clients Achterkirch, founder of Bloomington- than $200 million. become a reality. based technology-staffing firm Fourth Shift The hotel project, though, is the one The project will have. to overcome two HISTORICAL for Inc., is forming a new international cooking that's got people talking, Tschumper said. big hurdles: the steep decline of the hotel your company's school as part of the project. "We're really excited because ofahe con- industry and the limited availability of records Scott Pollock, vice president of invest- ference training center. We just don't have financing for new hotels, he said. ment services for Bloomington-based anything large enough to have any meeting "This one may be a while in gestation:' Attractive reprints on 80# United Properties, said Burnsville's Nicollet rooms;' she said. "This would really fill one Bill Von Bank, executive director of the enamel paper are also Avenue corridor is going to become the of our voids:' Burnsville Convention and Visitors Bureau, available with color! ,,,;,,.;..~~kf,~.„~,,,~, city's downtown. Its proxinty to retail, the The hotel deal is tzrthest out and probably said the hotel would attract conventions and ~8t~rs interstate highway and a transit hub make it wouldn't begin construction until fall of events, particularly from southern P'aCe YOUr a great place for housing, and the housing 2002, Tschumper said. The mixed-use proj- Minnesota and the Upper Midwest, where ' will drive traffic at all of the proposed restau- ects could all start construction in the spring. ~>rganizers prefer Burnsville's low lodging OrdBr rants, he said. News of the hotel proposal surprised taxes and crime rates and its proximity to • A unique gift idea r"`MN,~, Planned fora site across Nicollet Avenue Steve Dubbs, vice president for the lodging major attractions. for Clients, investors, = to the east are two town-house develop- division of St. Paul-based CSM Corp. If other developers are pessimistic about and friends menu: Bloomington-based Springbrook , After the Sept. 11 terrorist attacks, the chances of the hotel succeeding there, • A must for your C'o~p. is proposing a 150-unit project with besides the airlines, "nobody's been hurt Von Bank said, it's because they haven't Company's units for sale and an undisclosed developer worse than the hotel and hospitality busi- taken a close look at the city's redevelop- promotional is proposing a rental project with 34 units. ness," Dubbs said. "All (hotel] development ment plan. material The entire Heart of the City project is has ground to a complete halt. Something Sam Black can be reached at (612) 288-2103 meeting the city's goals to create a very like this would be nearly impossible to or sblack~biz)ournals.com. ~ i f ~ ~ I ~ dense mixed-use center that expands the tax t3nance in this current environment:' base, Tschumper said. Rough estimates put Also, unlike high-traffic areas near the ~ t' 1 2 CityBusittess November 2, 2001 http://twincities.bcentral.com ' ~ ~ The Hartford Group to propose mixed-use development to city; would be Apple Valley's largest of its type • ro ec sou or e e By Sam Black 153rd Street West, will be presented to the ~ it ~ ~r any details. If the approval goes smoothly, Staff reporter city at a planning commission meeting Nov. construction is expected to start next spring Burnsville-based The Hartford Group 14. The project would anchor one of the last ~ on all aspects of the project, he said. Inc. will propose a $102 million project that undeveloped intersections in Apple Valley. "We think we're bringing a really unique would be Apple Valley's. biggest mixed-use Hartford tentatively plans to construct ~ development to the azea that will be well- development. 278 mazket-rate apartments, 128 units of received," Brandt said. The proposal, fora 26-acre site at the senior independent-living apartments and APPLE VALLEY ~ Gwen Weitzel, leasing consultant at southeast corner of Galaxie Avenue and 120 for-sale town homes with sale prices c`~ Kingston Green, a 343-unit apartment com- starting at $225,000. plex adjacent to the pumpkin patch that will I50th 5t. W. The development, called The Legacy, eventually be Hartford Group's development would also include 56,000 square feet of The Legacy would site, said the site is a good choice because It's kind of the last retail, including three restaurants. Plans call feature a variety of "everything's nearby." for a consistent stucco design resembling ~ housing and retail. Cub Foods, Rainbow and Tazget are all bl section of our facades in central European villages. It would just a few blocks away, she said. feature bike and walking paths and include a Another plus is lack of competition; there 153rd St. are few a artments in the cit Weitzel said. dOWntOWn COmmerClal 3-acre decorative lake and ice skating rink. i ~ P Y• Jack Brandt, president of Hartford Group, ~ - Kingston Green, which was built in area and it re resents said this is the lazgest project developed by major arterial roads on three sides and high- 1999 by a family-owned company from p the company yet, but it is the fifth with a density apartments on the other. Tea, S.D., called Hayloft Property similar mix of services, including. projects in "It's kind of the last big section of our Management Co. Inc., is maintaining a an opportunity fora Eden Prairie, Plymouth and Hudson, Wis. downtown commercial azea and it does rep- vacancy rate around 3 or 4 percent, despite The location in the heart of Apple Valley is resent an opportunity for a development of a the high number of renters who have development of a more the key aspect of the site, he said. "The market little more pedestrian-friendly type," he said. bought homes recently. is generally very good in Dakota County." Brandt said he's in discussion with the "It's nice out here," she said. pedestrian-friendly Hartford has the land under contract for an city about possible tax incentives for the Sam Black can be reached at (612) 288-2103 undisclosed sum from Dave Dalbec, a project, but that it was premature to discuss or sblack~bizjourna/s.com. ~pe~ ~ Plymouth-based investor, and Bart Winkler, of Apple Valley, who have owned the land. since the 1980s, said Rick Kelley, Apple Valley's - Rick Kelley director of community development. Director of community development Kelley doesn't anticipate much opposi- for Apple Valley tion to .the project because it is bordered,by ' Building owner asking $4.7M • ~ Le vita shu tltln do g ~n Bu rnsv~~l e loc anion By Sam Black down from. 127 in 1997. Klaff Realty has Staff reporter owned the building since a 1999 sale/lease- Levitz Home Furnishings Inc., a New back transaction with the furniture retailer. York-based national furniture retailer, .has. Ritter said he didn't know of any plans to decided to close its Burnsville store and shut down the chain's other Minnesota loca- wazehouse in the first half of 2002. lions, in Brooklyn Park and in St. Paul. - The 167,174-square-foot building,- neaz Welsh is evaluating an offer-from a retail the southwest intersection of Interstate 35W user to purchase the building, Ritter said. and Highway 13, has been put up for sale or There's nothing like it nearby, he said. It's lease by its owner, Klaff Realty. of Chicago. in an`industrial sector, but it could easily be Levitz occupies about 87,000 square feet, used as retail space. Ritter hinted that the site said Bill: Ritter, a broker at Bloomington- would be ideal for an .indoor auto dealership. based Welsh Cos. who is marketing the build- "The key here is the visibility," Ritter said.' ing for Klaff. The asking price of the building Dick Grones, a principal at Edina-based is $4.7 million. Arecord-storage firm. has a .Cambridge Commercial Realty Inc., said he long-term lease on the other half of the build- wasn't surprised about the' Burnsville store ing, but the Levitz space is available for $4c50 shutting down. The departure of big-box per square foot net, Ritter said. retailers, such as Knox Lumber, from the area Officials at Levitz's national headquarters has shifted the focus from retail to a little didn't .return calls. The store manager in more industrial. "It's not a very retail-feeling Burnsville said the building was for sale and area," Grones said. the store would likely close in June. The furniture business has also slowed In February, Levitz emerged from athree- recently, tracking with home sales, he said. yeaz Chapter 11 bankruptcy. Counting three Sam Black can be reached of (612) 288-2103 Twin Cities sites, the chain now has 58 stores; or sblzckC~lbizjournals.com. WEDNESDAY, NOVEMBER 21.2001 TODAY'S BUSINESS BFiIEIi~G REGIONAL NEWS Rexam to sell plastics plant in Lakeville Rexam Plc, the London- basedparent ofRexam Flexible Packaging of Lakeville, has agreed to sell the business to Sunbelt Manufacturing Inc., a division of Tyco Plastics, for $12 million in cash, subject to adjustments. The Lakeville plant pro- duces plasticfilm primarily for construction and industrial mazkets. Plant representatives declined to comment; accord- ing to the 2001 Corporate Re- port Fact Book, the. plant has annual revenue of $50 million and 130 employees, although one Lakeville employee said .there were fewer employees than that. Tyco Plastics is affiliated with Tyco International Inc. of Exeter, N.I-L, and operates Tyco Plastics and Adhesives of Bloomington. Tyco Interna- tional spokeswoman Mary- anne Kane said that Tyco in- tends "to nm the [Rexam) busi- ness and grow it," but that it's premahire to comment on how a sale might affect the opera- tions. -Susan E. Peterson 85 E. SEVENTH PLACE, StIITE 100 .:SAINT PAUL, MN 55101-2887 65t-223-3000 FAX:651-223-3002 1\T T'T, .~dg•isoz-s tO the PuE?Itic SLec:tc>z• a.' i,~ INTERNAL MEMORANDUM TO: Lakeville Economic Development Commission FROM: Paul T. Steinman, Vice President Mikaela Huot, Project Manager DATE: October 16, 2001 SUBJECT: Specia! Levy Authority The purpose of this memo is to further define the issue of utilizing special levy authority as defined in state statute for the purpose of economic development. The following bodies have varying special levy authority through consent of their respective City Councils: Body Levy Authority Mn Statutes 469.002 Housing & Redevelopment Authority .0144% of taxable market value Mn Statutes 469.090 Economic Development Authority .01813% of taxable market value Mn Statutes 469.048 Port Authority .01813% of taxable market value The defined purpose or powers of each body is as follows: HRA -Purpose (1) to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the citizens of this state; (2) to clear and redevelop blighted areas; (3) to perform those duties according to comprehensive plans; (4) to remedy the shortage of housing for low and moderate income residents, and to redevelop blighted areas, in situations in which private enterprise would not act without government participation or subsidies; and (5) in cities of the first class, to provide housing for persons of all incomes. EDA -Powers (1) An economic development authority may create and define the boundaries of economic development districts (2) The economic development authority may acquire by lease, purchase, gift, devise, or condemnation proceedings the needed right, title, and interest in property to create economic development districts. (3) The economic development authority may sign options to purchase, sell, or lease property. CORPORATE OFFLCE: SAINT PAUL, MN • Visit our website at www.springsted.com DES MOINES, IA • MILWAUKEE, WI • MINNEAPOLIS, MN • OVERLAND PARK, KS • VIRGINIA BEACH, VA • WASHINGTON, DC 1~ x Page 2 (4) The economic development authority may exercise the right of eminent domain under chapter 117, or under its city's charter to acquire property it is authorized to acquire by condemnation. (5) The economic development authority may make contracts for the purpose of economic development within the powers given it in sections 469.090 to 469.108. (6) The economic development authority may be a limited partner in a partnership whose purpose is consistent with the authority's purpose. (7) The economic development authority may acquire rights or an easement for a term of years or perpetually for development of an economic development district. (8) The economic development authority may buy the supplies and materials it needs to carry out this section. (9) The economic development authority may accept land, money, or other assistance, whether by gift, loan or otherwise, in any form from the federal or state government, or an agency of either, or a local subdivision of state government to carry out sections 469.090 to 469.108 and to acquire and develop an economic development district and its facilities under this section. (10) The economic development authority may sell or lease land held by it for economic development in economic development districts (11) Foreign trade zone. The economic development authority may apply to the board defined in United States Code, title 19, section 81 a, for the right to use the powers provided in United States Code, title 19, sections 81 a to 81 u. (12) The economic development authority may exercise powers and duties of a redevelopment agency under sections 469.152 to 469.165, for a purpose in sections 469.001 to 469.047 or 469.090 to 469.108. (13) The authority may operate and maintain a public parking facility or other public facility to promote development in an economic development district. (14) Government agent. An economic development authority may cooperate with or act as agent for the federal or the state government, or a state public body, or an agency or instrumentality of a government or a public body to carry out sections 469.090 to 469.108 or any other related federal, state, or local law in the area of economic development district improvement. (15) An authority may study and analyze economic development needs in the city, and ways to meet the needs. An authority may study the desirable patterns for land use for economic development and community growth and other factors affecting local economic development in the city and make the result of the studies available to the public and to industry in general (16) To further an authorized purpose, an authority may (1) join an official, industrial, commercial, or trade association,. or another organization concerned with the purpose, (2) have a reception of officials who may contribute to advancing the city and its economic development, and (3) carry out other public relations activities to promote the city and its economic development. (17} An authority may accept conveyances of land from all other public agencies, commissions, or other units of government, if the land can be properly used by the authority in an economic development district, to carry out the purposes of sections 469.090 to 469.108. (18) An authority may carry out the law on economic development districts to develop and improve the lands in an economic development district to make it suitable and available for economic development uses and purposes. (19) .After authorizing bonds under sections 469.102 and 469.103, an authority may borrow to provide money immediately required for the bond purpose. (20) The proceeds of obligations issued by an authority under section 469.103 and temporary loans obtained under subdivision 19 may be used to make or purchase loans for economic development facilities that the authority believes will require financing. Page 3 (21) An authority may sell, at private or public sale, at the price or prices determined by the authority, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan made for the purpose of economic development, job creation, redevelopment, or community revitalization by a public agency to a business, for-profit or nonprofit organization, or an individual. (22) Supplying small business capital. Notwithstanding any contrary law, the authority may participate with public or private corporations or other entities, whose purpose is to provide seed or venture capital to small businesses that have facilities located or to be located in the district. Port Authority -Powers (1) General duties. A port authority shall: (1) promote the general welfare of the port district, and of the port as a whole; (2) try to increase the volume of the port's commerce; (3) promote the efficient, safe, and economical handling of the commerce; and (4) provide or promote adequate docks, railroad and terminal facilities open to all on reasonable and equal terms for the handling, storage, care, and shipment of freight and passengers to, from, and through the port. A port authority may carry out its powers and duties under sections 469.048 to 469.068 at any place in the city. (2) Generally all the powers of both an HRA and EDA, in addition to those specific to "port" activities. Levy dollars for each of these entities can be utilized for a wide variety of housing and economic/industrial development activities as defined in the statute. Special legislation is required to establish a Port Authority, although HRA's and EDA's can be created by resolution of the City Council. Several cities have both an HRA and an EDA, with varying economic development responsibilities assigned to each. Using the city's estimated Pay 2002 taxable market value of approximately $2.8 billion we calculated the total amount of dollars each body would be able to annually raise if they levied the maximum percentage: Body Maximum "non-bond" Levy Amount • Housing & Redevelopment Authority $403,000 Economic Development Authority $507,600 Port Authority $507,600 Additionally, each body has varying degrees of authority to issue and levy for the payment of bonds over and above the maximum levy amount. i r FINANCIAL TOOLS PROGRAM LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION October 23, 2001 Presenters: Paul Steinman Mikaela Huot SPRINGSTED 1J~ixom ur'he Public Secmr I ~ s'' Purpose of Study ? To provide a comprehensive profile of tools and programs for application in Lakeville. ?To act as an educational instrument on available economic development tools. ? To provide a baseline to measure the state of existing economic development policy. SPRINGSTED ~ IJ '.a~n m rbe h61ic Sem.r 1 i i~ Stud Summar y y ? 33 conditions listed under 8 main topics - Downtown - Freeway - Retail Development - Community Enhancement - Business Attraction - Business Retention and Expansion - Housing - Public/private Infrastructure 'SPRINGSTED AJ.iw~n~ m the Public Sec¢nr t Y~ s~~°'~ Study Summary -Continued ?18 tools listed ? 5 primary tools - TIF - Tax Abatement - Industrial Development Revenue Bonds - Minnesota Investment Fund - Redevelopment Fund ?Each tool =multiple applications SPRINGSTED Id ..tea ~o me wns~ se~mr 2 Primar Tools ~ y ? Tax Increment Financing - Redevelopment - Renewal and Renovation - Housing - Economic Development ? Substantial changes this year due to property tax reform ? Will remain as the tool of choice for redevelopment, contaminated soils and housing SPRINGSTED Advixruv m rbe Wbh'c 5amr ~ - ` _ Primary Tools -Continued ? Tax Abatement - New, generally untested - Less of an incentive? Perception Vs. Reality - Helps educate other jurisdictions about the economic development process ~ ~ r r~~-. - Creative use? ~ • TA Pool • Partner with Tax Increment? :SPRINGSTED AJ~inv`x n~ Abe Pub]ic~5n~mr 3 ~ , ~ _ Primary Tools -Continued ?Industrial Development Revenue Bonds - Has not been seen as the tool of choice - Seen as cumbersome/costl to use w'D `r~~`~ro i-, y ~2. ir-c-e i . ~-c~ -Most City's are willing to provide TI `{d~~v~ J • TI Vs. IDRB's - Use will increase in future years - Can work in combination with TIF or Abatement !SPRINGSTED ~ AJ.imn ro the Public Secn~r ~ Primary Tools Continued ?Industrial Development Revenue Bonds . y ~j-2 L f' C°G' ~w~i~S - Best for projects > $1M " ~ Vic, ~ c.~- SPRINGSTED AJria~ora~nr the Pu6lx~Sermr 4 r t . a Primary Tools -Continued ?Minnesota Investment Fund - Department of Trade & Economic Development manages program - Competitive - Maximum $500K per year per applicant - 1st $ l OOK is grant to the city, remainder is repaid to State :SPRINGSTED _ ! AJnrr~m ro the Public Secmr - ~=,_v. Primary Tools Continued ?Redevelopment Grant - Department of Trade & Economic Development manages program - Competitive - Provides gap financing - Unfunded in 2001 - Future funding? • Support building for request of $30M - $40M for 2002 SPRINGSTED I.i.vnr.. n, the Pu6lic.Secror r J Secondary Tools ?Economic Development Fund ? Revolving Loan Fund ? CDBG SPRINGSTED AJ.ixnn m the Public.Sec¢nr Future Activities? ?Further education on the 5 primary tools - EDC worksessions ? Preparation for utilizing primary economic development tools - Application process - Evaluation mechanisms ? Reactive/Proactive ?Policies in place to reflect future usage of such tools? _ "``SPRINGSTED iE .J.inun rbe Pvh11c 5ecenr - 6 4 {r 1 r ~ ~ Future Activities ? ? Policy considerations - Fee based services/cost recovery • TIF/Abatement application fee • 1/2 of 1% administrative fee on IDRB's - Fees to go toward funding secondary economic development tools • economic development fund • revolving loan fund SPRINGSTED AJrann m the Pub/k.Secmr ~ ~ ECONOMIC DEVELOPMENT COMMISSION ~ STRATEGIC PLAN FOR ~ ECONOMIC DEVELOPMENT ~ 2ooz-zooa 1 P..,<.,.a.<,~.~. ~~.,~.o~emee,i.,oo~ 1 ' 1 STRATEGIC PLAN - TA6LE OF CONTENTS 1. INFORMATION GATHERING Introduction and History of the EDC's Strategic Planning Efforts 4 Historical Timeline of the Economic Development Commission 5 ' 2000-2001 Strategic Work Plan Strategies 6 ' Progress and Achievements of the 2000-2001 Strategic Plan 7 ' 11. THE 2002-2004 STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT 1 The Strategic Planning Process Flowchart 10 ' Participants in the Strategic Planning Process 12 ' Defining the EDC Vision 13 ' Mission 14 Identifying Work Areas ' SWOT Analysis 15 City Council Priorities that are Relevant to Economic Development 16 Significant Issues Facin the Economic Development Commission 17 9 ' Critical Issues Facing the EDC in 2002-2004 and Beyond 19 Strategic Work Areas for 2002-2004 20 ' I11. STRATEGIC WORK PLANS 2002-2003 Work Plans 26 1 ' -2- ' 1. INFORMATION GATHERING -3- 1 Introduction And History Of The EDC's Strategic Planning Efforts 1 The Economic Development Commission has a rich heritage of planning for the economic future of Lakeville dating back to the first Strategic Plan completed in 1995. The EDC continues to undertake a Strategic Planning process biannually. This process includes reviewing the Commission's progress on the previous plan's goals, examining ' the current issues facing the community, and drafting a new Strategic Work Plan. The 2002-2004 Strategic Plan for Economic Development continues that tradition of thoughtful and organized planning for the economic future of Lakeville. ' Strategic Plans have enabled the Commission to focus their efforts and accomplish tangible results. Activities that are now considered a standard part of Lakeville's Economic Development program were conceived through earlier strategic planning processes, including the "recruitment of businesses whose executives already live in Lakeville", the development of "additional executive-level housing for new incoming residents", "Development Project Feedback Surveys", and "targeted marketing materials including marketing videos." ' The 2000-2001 Strategic Plan for Economic Development articulated three primary goals for the EDC: O Attract and retain employers and workforce to diversify the economic base. ©Mana e rowth and the cit rocesses to enhance the 9 g Yp quality of life and sense of community. 4 Position Lakeville for long-term economic expansion. -4- ' Historical Timelin f h eo t e ' Economic Development Commission 1 84 The EDC was started as a component of the Star Cities Program ' 90 Direction started b EDC members; Council hires first EDC Y ' Director 92 First Strategic Growth Task Force sets Economic Development ' goals including fiscal impact analysis 93 First Economic Development Specialist is hired ' 95 Second Strategic Growth Task Force; First EDC Strategic Plan adopted by the City Council for 1996-1997 96 First Marketing Plan Developed 97 Second EDC Strategic Plan adopted for 1998-1999 ' 99 EDC starts to act at subcommittee level; Third EDC Strategic Plan adopted by the City Council for 2000-2001 1 , - Ol Integration of Council s priorities into EDC Strategic Plan; ' Chamber increases involvement; EDC has authority to utilize funding once budget is approved by the City Council; EDC serves at the pleasure of Council to work toward common ' goals; Annual report of progress/accomplishments with ongoing regular communication -5- 1 2000-2001 Strategic Work Plan Strategies ' Eleven strategies were outlined in the 2000-2001 Work Plan, along with specific actions and steps the EDC would undertake to achieve those goals. The strategies are listed below. ' 2000-2001 Strategic Work Plan Strategies 1 • Develop and implement vision for Lakeville's retail and service sectors • Ensure an adequate supply and diversity in housing opportunities ' Maintain long-term vitality of the Historic Downtown • Develop Strategies to attract and retain employers that will utilize the skills of the ' residents • Encourage additional office park/business campus and home-based business sector ' development to achieve desired business mix • Identify resources to meet employers' recruitment and retention needs ' Im lement strate ies to ensure Lakeville's infrastructure is ade uate to meet current • p 9 q ' and future business needs • Develop and maintain policies and programs that improve Lakeville s capacity for ' Economic Development • Develop and monitor policies that promote quality growth ' Enhance and maintain communication efforts with stakeholders ' Implement Strategies to Maintain Quality Customer Service ' -6- Progress and Achievements of the 2000-2001 Strategic Plan The EDC's success in utilizing the 2000-2001 strategies was reviewed in February, 2001. Progress was made on every strategy outlined in the Strategic Work Plan, as indicated below: ? Ongoing conversations with developers of upscale grocery stores. ? Referral of prospects to Aurora Investments d.b.a. Heritage Commons. ? Successfully encouraged incorporation Heritage Commons Design Guidelines into the ' design for U. S. Bank. ? Successfully encouraged the United States Postal Service to develop a retail facility at ' Heritage Commons. ? Provided CDBG funds to acquire site for an additional 31-unit affordable rental townhouse development. ? City approved first market-rate apartment development. ? Diversity of housing opportunities enhanced by the approval of more attached townhouse ' developments than single-family developments. ? Assisted developer in evaluating methods to construct proposed Dominium affordable ' housing project. ? Provided CDBG funds for the upgrade of the Smith Dentistry building and the former A+ ' Driving School building consistent with the Historic Fairfield District of Downtown Lakeville Design Guidelines. ' ? Broke ground on a senior housing mixed-use facility, bringing more people and more retail space to downtown. ' ? Completed Labor Force Focus Group Study which surveyed businesses on retention and recruitment issues. ' ? Developed a High Tech Subcommittee to explore the possibility of a developing a High Tech Business Park. ? Completed a survey of businesses' telecommunications uses and projected needs; ' identified strategies to address needs. ? Identified strategies to support employer recruitment of labor. ' ? Held two meetings with manufacturing businesses to present labor recruitment strategies and determine interest. ' -7- ? Fostered leadership among Airlake businesses via the HR Committee of Chamber to implement strategies. ' ? Researched labor force recruitment web site options, billboards, logos, developed budget, applied for grant to support project. ' ? Provided information via Airlake News regarding training and education opportunities. ? Determined via survey that childcare is not a major barrier to employment in Lakeville. ' ? Encouraged development of new hanger and service options for corporate flights. ? Explored EDC's ability to use Revolving Loan Funds to incentives the development of new facilities, e.g.: FBO and corporate hanger. ' ? Mef with fixed based operator fo encourage enhancement of facilities and service. ? Met with Jeff Hamiel, Executive Director of the Metropolitan Airports Commission, Gary ' Schmidt, Director of Reliever Airports for MAC, and Bridget Reif, Airside Project Manager for MAC, regarding options for enhancing facilities and service at Airlake Airport. ' ? Met with Reliever Airports Manager Jack Eberlien regarding proposal to construct a new hanger with facilities to accommodate corporate flights. ' ? Formed Park Dedication Subcommittee to ascertain the City's ability to use park dedication fees to accomplish Corridor and Gateway designs. ? Joint subcommittees were established with other advisory boards and City departments, including the Park Dedication Subcommittee with the Parks and Recreation Advisory Committee, the High Tech Subcommittee with the Telecommunications Commission, and the South Creek Subcommittee with the Environmental Affairs Committee. ? Bi-monthly business development status information provided for Transactions, the Chamber of Commerce Newsletter. ? Quarterly publication of Airlake News for manufacturing businesses, also sent to all Chamber members. ? Non-Residential Development Project list updated quarterly and provided to realtors, 1 brokers, etc. ? Incentive subcommittee convened to study incentive options. ' ? Updated Park Dedication fees with input from Airlake Development. 1 -8- 11. THE 2002-2004 STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT 9 The Strategic Planning Process Flowchart ' I. Information Gathering Review of ' Previous Plan History of the ' EDC -Bob Erickson 2000-2001 Accomplishments City ~ Historical Timeline ' Council's Four Council Perspective: Priorities ' Council Priorities - Mayor Bob Johnson ' II. Define the EDC Vision ~ What will the EDC be like? Characteristics MiSSion What is the EDC's Statement purpose? ' -10- III. Identify the Strategic Work Areas ' SWOT Analysis of Lakeville ' Brainstorming: Significant Issues that will Impact Economic Development ' Consolidation of Significant Issues into Critical Issues Ranking and Prioritizing Critical Issues ' Resulting in Strategic Work Areas IV. Incorporate Work Plans ' Outline Proposed EDC Four Actions to be taken on Strategic Work Areas the Strategic Work Identified Areas Ongoing Implementation 2002-2004 Of Work Plans - Strategic Plan for Economic Re-Evaluate Annually Development - final document Legend Green =Planning Stage Black =Actions/Steps in the Planning Stage ' Blue =Documentation Produced =City Council Participation/Approval -11- ' Partici ants In The Process P ' The Strategic Plan for Economic Development is a written three year plan that guides the work of the Economic Development Commission and Economic Development staff ' in achieving the growth objectives of the City of Lakeville. In order to develop a living/working plan it is imperative to have open communication between the elected community leaders and the EDC to establish agreed upon priorities. It is also important ' to understand the historical context in which the EDC was formed and continues to operate, as outlined earlier in this document. The process of developing a new plan for the 2002-2004 biennium began in April, 2001. Many elected and appointed officials and staff committed their time, talent and energy to creating a strategic plan that would position Lakeville well in the future. Robert Johnson, Mayor ' Bob Vogel, Economic Development Commission Chair Bob Brantly, Economic Development Commissioner Jim Emond, Economic Development Commissioner Jerry Erickson, Economic Development Commissioner Jack Matasosky, Economic Development Commissioner ' Dick Miller, Economic Development Commissioner Parry Pogatchnick, Economic Development Commissioner ' Jeannie Schubert, Economic Development Commissioner Gary Tushie, Economic Development Commissioner Robert Erickson, City Administrator ' Arlyn Grussing, Community & Economic Development Director Ann Flad, Economic Development Coordinator ' Todd Bornhauser, Ex-Officio Economic Development Commissioner; Executive Director -Lakeville Area Chamber of Commerce i ' -12- ' Vision ' Every organization needs a vision of how it will operate and a clear mission that it is dedicated to achieving. Therefore, the Commissioners gathered in April to articulate a vision and outline a mission for the EDC. Mayor Bob Johnson and City Administrator/ ' Ex-officio Commission Bob Erickson provided background on the EDC and information on the City Council's current priorities. The Commissioners discussed how they envisioned the EDC operating and determined the characteristics that would define the ' Commission. The EDC is committed to operating in the manner described by the following vision characteristics. I THE EDC'S VISION IS TO BE ' Creative And Innovative ' Credible ' Fncilitntors Of Change Providers Of Outcomes To Achieve Lasting Impact ' Providers For A Better Communi ty ' Promoters Rather Than Policy Makers Builders Of Relationships Between Businesses And Residents ' Successful Fncilitntors Of Council Initiatives Anticipatory Of Difficult City Issues And Developers Of Proactive Solutions Identifiers Of Issues Before They Become A Problem ' Aggressive Innovators ' -13- Mission Just as a vision helps an organization define how it will operate, a mission is necessary in order to be clear on the purpose of an organization. The Commission determined whether the EDC should have a role in addressing the Council's priorities based on the ' mission of the Commission. Additionally, every issue and action item that the EDC undertakes must be consistent with the EDC's stated mission. Below is the mission statement from the previous Strategic Plan and a new mission statement which will t carry the EDC into the future. Mission Statement From the 2000-2001 Strategic Plan ' The Economic Development Commission is committed to programs and policies which enhance the quality of the business and residential community. Lakeville is a great place to ' grow a business! ' Understanding the historical perspective of the EDC and the vision of how the Commission will operate allowed the EDC to evaluate their existing mission statement and its relevance for the future. Anew mission statement was developed which reflects ' the Commission's charge to be proactive and to achieve balance in the community. • EDC MISSION STATEMENT The Economic Development Commission is ' committed to innovative economic growth which enhances the quality of life, and provides balance to the business and residential community. ' -14- ' S.W.O.T. Analysis Because the EDC has successfully achieved many of its previous goals, and because Lakeville is a growth community, the dynamics and issues that will be influencing the ' community in the next several years have changed since the previous Strategic Plan was written. The Commissioners examined the current Strengths, Weaknesses, Opportunities and Threats to Lakeville in order to better understand the dynamics that will influence development in the next few years. ' STRENGTHS OF LAKEVILLE ' Diversity of EDC members' backgrounds Infrastructure needs relative to resources Available land for growth ' Retail growth beginning Past planning (Gateway, Heritage) Freeway corridor ' Southern Gateway to the Metro Proximity to both metro areas WEAKNESSES OF LAKEVILLE ' High Tech infrastructure Deficient airport runway Shortage of affordable housing ' Current lack of retail I-35 is an outdated road design OPPORTUNITIES FOR LAKEVILLE ' New growth On retail cusp ' In the center of any east-west corridor ' THREATS TO LAKEVILLE ' Urban sprawl Regional government Public opinion against development ' Tax base growth outpaced by development Increasing land prices causes growth cap ' -15- ' City Council Priorities That Are Relevant to Economic Development 1 ' The EDC recognizes that the City Council has many issues to consider, and many advisory groups to help examine these issues and recommend actions to be taken. As a commission appointed by the City Council in an advisory capacity, the Economic ' Development Commissioners must understand the City Council's concerns and priorities. Additionally, the EDC recognizes that in order to be an effective Commission, they must focus their efforts on the priorities that are most closely related to the EDC's 1 mission of fostering "innovative growth which enhances the quality of and provides balance to the business and residential community." ' The EDC thus reviewed the City Council's priorities and identified the four priorities. which are most relevant to the EDC's mission. The four priorities are listed below and are not in any particular order. ? Property Tax New growth of commercial-retail tax base ' Broaden tax base by use of high tech opportunities ? Trans ortation p ' Interchange priorities: 60-70-50 Strategic Placement of major east-west corridor County and City CIP Implementation ? Communication ' Media tools to spur commercial growth Blend amenities with economic impacts of community development ' Communicate economic development successes ? Growth ' Provide balance in the community Pace of growth relative to infrastructure, schools, taxes, transportation, etc. Provide affordable housing stock ' Downtown viability-vitality ' -16- Significant Issues Facing The Economic Development Commission 1 ' The City Council's priorities include tax base, transportation, communication and growth. Keeping in mind the strengths, weaknesses, opportunities and threats that were identified at the April EDC meeting, Commissioners listed their top five to ten significant issues facing the EDC. Fifty-seven issues were submitted as follows: • Interchange priorities for 60-70-50 • Need for major transportation arteries both city and regionally • How to provide adequate access to commercial/retail areas (ie: roads) ' Interchange Upgrades (70, 60, 50) • I-35 Corridor enhancements • Need to upgrade 70&35 ASAP to provide better access to Airlake -costs may prevent this. • Follow plans for major east-west corridor -strategic placement ' Affordability of land and major local road upgrades • Once east-west corridor has been identified by county we need to revisit proposed adjacent land uses. ' • Transportation - I-35 Interchanges/East/VUest Corridor • Infrastructure needs relative to resources • Commercial/retail property tax base growth may not be accomplished because of infrastructure costs. • Infrastructure needs relative to resources ' • Encourage investigation of all potential upgrade opportunities available in critical "business infrastructure" elements required -phone, data, etc. and promote positive outcomes for long term! ' • High Tech Infrastructure: sooner or later this will be an issue • High Tech Infrastructure ' • Technology Infrastructure • Support efforts for additional low cost housing • Shortage of affordable housing ' Affordable housing -being able to finance it and provide enough • Where and who can help the City develop more affordable housing • Implementation of gateway corridor plan: no defined plan for implementation ' Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville's identification ie: "Where we are located" ' Proximity to both metro areas • Make use of "Southern Gateway" opportunities • Financial Planning for Community -encourage community partners -schools, city, ' county, state, etc. to provide input to create basic financial models that can be used -17- to visualize and measure potential threats, outcomes and overall impacts of our efforts to improve financial position of the City in the future. • What if scenario for each $ spent in Lakeville retail vs. residential vs. industrial, etc. ' Partner with schools to minimize adverse levy impacts • Working with the school district(s) ' • Our (EDC) budget for projects (cost vs. benefit) • Downtown viability • Long term viability of downtown - no one or entity is taking lead role • Work to retain the historical flavor of downtown area, yet develop it into a vibrant business community • Help residential population appreciate C/I residents - "P.R." for business community • Create and use aggressive innovations to build relationship between business and ' residents • Keeping the citizens informed and accounted for on growth issues • Gaining community support for future retail/office/industrial growth ' Use media tools to spur commercial growth • New Growth • The need to encourage creative financial options to develop affordable housing and to encourage new commercial/industrial/retail growth • Remain committed to the philosophy of quality strategic growth ' • New growth • Continue to promote Lakeville's growth rather than be a policy maker • Ability to control growth like Heritage Commons. Ordinance does not provide for this in other critical areas ie: 35 W Corridor. • Urban sprawl: pressure to get additional tax base may allow commercial ' development that we do not want in the long term. • The need to initiate and develop projects that will generate a healthy tax base • Current lack of retail • Pace growth -Allow commercial/industrial sector to keep pace with residential • Balance between C/I and residential tax base ' How to increase the retail/commercial tax base • Impact of property tax needs for school, city and county • Promote new growth of industrial and commercial development to enhance tax ' base • Tax base growth outpaced by development ' Investigate/encourage expansion of Airport and rail opportunities and their impact on C/I community • Ability to upgrade airport to accommodate corporate aircraft -MAC is roadblock ' Anticipate difficult city issues and develop proactive solution • Identify city issues before they become a problem -18- Critical Issues Facin The EDC in 2002-2004 And Be and Y ' Because there was overlap, the Commissioners consolidated the significant issues to the twenty-one most critical issues. The following critical issues were identified and also ' placed into related categories as listed below: Infrastructure ' Interchange priorities for 60-70-50 • Need for major transportation arteries in the city including the need to provide adequate access to ' commercial/retail/industrial areas • I-35 Corridor enhancements • Explore issues related to East-West Corridor ' Implementation of Gateway and Corridor Plan -need defined plan for implementation • Investigate/encourage expansion of airport and rail opportunities and their impact on the C/I community Communication • Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville's identification - "Where we are located." • Inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth • Anticipate emerging/future city economic development issues and develop a proactive solution Financial • Financial planning for community -encourage community partners -schools, city, county, state, etc. to provide input to crate basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve financial position of city in future. ' Need to have a proactive budgeting process for EDC • Promote growth of industrial and commercial development to encourage balance between C/I and residential tax base Growth/development • Affordability of land • Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other infrastructure, to promote positive outcomes for long term. • Identify solutions for affordable housing • Make use of Southern Gateway opportunities and proximity to both metro areas ' • Work to retain the historical flavor of downtown area, developing it into a vibrant business community and ensuring its long term viability • Develop specific marketing for commercial growth ' Remain committed to policies of quality strategic growth • Current lack of retail • Encourage the use of development tools, e.g.: PUD's to integrate city design standards with new developments to achieve overall consistencies. -19- Strate is Work Areas for 2002-2004 g 1 By ranking and prioritizing the most pressing issues, the following four strategic work areas have been identified as the most critical for the EDC to address. If approved by the City Council, the strategic work areas and their respective critical issues will form ' the basis of the EDC's 2002-2004 Work Plan. Note: the remaining issues were incorporated as tactics to address the four priority issues below. Once the City Council endorses the EDC Strategic Issues, specific work plans addressing each item will be ' developed and included in the 2002-2004 Strategic Plan for Economic Development. The entire plan will be brought to the City Council for approval. 1 ' -20- STRATEGIC WORK AREA: 1 Su ort Ma ' or ~ pp J ~ Trans ortation Facilities p ~ - In The Ci 1 1 ISSUES TO BE ADDRESSED: 1 Assess impact of interchange priorities for 60-70-50 Need for major transportation arteries in the city including the need to provide adequate access to commercial/retail/industrial areas ' I-35 Corridor enhancements Explore issues related to East-West Corridor Implementation of Gateway and Corridor Plan -need defined plan for ' implementation Investigate/encourage expansion of airport and rail opportunities and their impact on the C/I community -21- ' STRATEGIC WORK AREA: Promote Policies O 1 uali Strate is Growth 9 ISSUES TO BE ADDRESSED: Encourage investigation of all potential upgrade opportunities in critical "business infrastructure" elements -phone, data, and other ' infrastructure, to promote positive outcomes for long term. ' Encourage the use of development tools, e.g.: PUD's to integrate city design standards with new developments to achieve overall ' consistencies. Continue to partner with Lakeville Chamber and DLBA for promoting Lakeville sidentification - Where we are located. i Anticipate emerging/future city economic development issues and t develop a proactive solution -22- STRATEGIC WORK AREA: 1 Foster A Gal arced ~ Communi ' ISSUES TO BE ADDRESSED: ' Inform and educate residents on benefits of C/I base to gain community support and appreciation for business growth. Identify solutions for affordable and lifecycle housing. Work to retain the historical flavor of downtown area, developing it ' into a vibrant business community & ensuring its long-term viability. ' Make use of Southern Gatewa o ortunities and roximit to both Y PP P Y t metro areas. Develop specific marketing for commercial growth. ' -23- 1 STRATEGIC WORK AREA: 1 Pro ote Growth O m Industrial And Co erc~al mm eve I o ent To Encoura e ~ pm 9 ~ balance between C/I ~lnd Residential Tax base 1 1 ISSUES TO BE ADDRESSED: 1 Financial planning for community -encourage community partners - schools, city, county, state, etc. to provide input to create basic financial models that can be used to visualize and measure potential threats, outcomes, and overall impacts of our efforts to improve ' financial position of city in future. ' ~ Need to have a proactive budgeting process for EDC Affordabilit of land y Current lack of retail ' -24- 111. STRATETGIC WORK PLANS -25- 2002-2003 Work Plans GOAL # 1 To inform and educate residents on benefits of C/I base ' to gain community support and appreciation for business growth . 1 ' Why educate and inform 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 Responsibilit Budget 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 EDC communicate to, what is their understanding, ' what are their needs? • Identif messa a Research information. EDC/Staff 1S Quarter 1. Promote/"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 ' -26- 1 GOAL # 2 1 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. 1 V11hy Financial Partnering? • Communication system (method) to have all related entities working toward common goals. • Define common goals. • Build understanding between business 8~ 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 City, School and County 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 ' -27- GOAL # 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 . 1 Wh Concentrate on Potential Infrastructure U rades? Y P9 ' • 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. ~'retiminary Wdrk~~'#an 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. -28-