HomeMy WebLinkAbout08-25-09Attachments:
City of Lakeville
Economic Development Commission
Regular Meeting
Agenda
Tuesday, August 25, 2009, 5:00 p.m.
City Hall, 20195 Holyoke Avenue
Lakeville, MN
1. Call meeting to order
2. Approve June 30, 2009 meeting minutes
3. Review of results of recent Business Retention Visits
4. Review and Provide Recommendation on Proposed Business Subsidy for
Genesis Poly Recycling
5. Director's Report
6. Adjourn
July 2009 Building Permit Report
Dakota County CDA August, 2009 Foreclosure Report
ImageTrend Article, Sun Newspapers, August 2, 2009
Design Standards Article, StarTribune.com, August 16, 2009
Special Service District, Dakota Co. Tribune Business Weekly, August 13, 2009
Apple Valley Central Village Article, Dakota Co. Tribune Business Weekly, August 13,
2009
Members Present: Comms. Matasosky, Smith, Tushie, Vlasak, Erickson, Starfield,
Schubert, Emond, Brantly, Longie, Ex- officio member Mayo4Holly Dahl, Ex- officio
member City Administrator Steve Mielke, Ex- officio member= Chamber of Commerce
Executive Director Todd Bornhauser.
Members Absent: None.
Others Present: David Olson, Community &nomic DevelopmentJirector; Adam
Kienberger, Economic Development Specie,` Daryl Morey, Planning Director, Allyn
Kuennen, Associate Planner.
1. Call Meeting to Order
Chair Matasosky called the meeting to 0 in the Marion Conference
Room of City Hall, 2019,5 Holyoke Avenue, L e vi le Minnesota.
2. Approve May 26, -,2009 Mee
Motion 09.05
City of Lakeville
Economic Development Commission
Meeting Minutes
June 30, 2009
Marion Conference Room, City Hall
mms. E
009
g Minutes
son /Emon
Item No,
oved to approve the minutes of the May
resented. Motion carried unanimously.
3. Con Proposed Zoning Ordinance Updates
1 1 Morey provide 4the ED with an overview of the process and noted that at the
last DC meeting the DC I a requested clarification on several aspects of the
propo exterior buildiN finish standards. Mr. Morey added that staff has prepared
a compa x s n showingow the existing building finish standards compare to the
proposed ards
Allyn Kuennen r viewed the EDC memo outlining a detailed comparison between
the existing and proposed ordinance standards.
David Olson noted that in the past conditional use permits have been granted in
certain instances to businesses such as Alcorn Beverage and Cloverleaf Cold
Storage to deviate from the existing zoning ordinance requirement for 50% masonry
on building facades facing a public street.
Economic Development Commission
Meeting Minutes
June 30, 2009
Comm. Erickson asked how the proposed zoning ordinance compared with
surrounding cities' requirements.
Mr. Kuennen reviewed a comparison chart provided to the EDC at their May
meeting, noting the similarities in how the exterior finish ordinances were structured.
Comm. Tushie added that most cities have a gradation of acceptable materials
similar to the proposed zoning ordinance. The difference between communities
typically is in the percentages allowed of specific materials. noted that this is a
very common practice.
Comm. Starfield asked if a building owner were to setts t lding, would they have to
bring the building up to the proposed exterior finish° ndar
anels
Mr. Kuennen responded that they would no e proposed or ordinance only applies
to new buildings or expansions of more th
Comm. Tushie noted that integrally colorin
difficult. The process by which these panels
maintain a consistent finish col°
Mr. Olson responded that exposed ggr gate
the proposed zoning ordinance forte reaso
rporati rovision for utilizing stained concrete in
olor as aption Sts ined concrete tends to be good for around
esn't flake need tot scraped like paint. A requirement for
certain timeframe could be included in the
should be included for colored mortar
Comm. Tushie su
addition to inte
15 years and
restaining the taocrete
ordinance. He add
where,. to block construction is us
She Mielke coente
t r
re fements. Part of the i
maintenance requirements
mainte ce issues
r large buildings' tend to be
onstructed make it difficult to
et the requirements listed in
at it is difficult to enforce building maintenance
tikof the proposed ordinance is to provide no or low
so the City doesn't run into as many property
Comm. Tushie at EIFS is listed as an acceptable material in the proposed
zoning ordina ost cities allow this only as "trim or less than approximately
5% of the total exterior building materials.
Chair Matasosky added that EIFS also causes problems with insurability.
Comm. Tushie further added that stucco is a more appropriate material than EIFS.
A product such as Quik -Brik should also be considered as an allowable material as it
is approximately half the cost of traditional brick and looks nicer than rock -faced
block.
2
Economic Development Commission
Meeting Minutes
June 30, 2009
Mr. Mielke added that it could possibly be considered a "Grade B" material.
Comm. Tushie asked about the proposed 65% requirement of Grade A materials in
the industrial districts. That seems like a lot for an industrial building.
Chair Matasosky agreed that 65% of Grade A materials in the industrial zoning
districts seemed high.
Comm. Tushie noted
materials is a good aii
buildings.
Mr. Kuennen n
memo and added 1
receive pd on tf
Comm. Sta
changes. Are
the recd
s appre
Comm. Smith noted that there are different threshold the commercial and
industrial districts.
Mr. Kuennen clarified that in the industrial districts; a prop ordinance calls for
65% of Grade A or Grade B materials. Commercial districts re held to a higher
standard than the industrial districts in the proposed ordinance.
Comm. Tushie stated that he just reviewed architectural standards r the City of
Eagan and they call for higher standards to e utilized portions of buildings that
are visible for the public right -of -way.
Mr. Kuennen concluded his revue of,,the EDC memo and chart comparing the
existing ordinance to the proposer rdina
e different types of Grade A
e` to break p the wall of new commercial
the public review process outlined in the EDC
...added to the Lakeville website's list sery to
ue as they are published.
ielke added t s of the ideas addressed at the meeting would be
in orated into a revised ordinance draft that will continue through the public input
prode. This issue e brOUght back to the EDC at a future meeting for a formal
about the costs to new businesses to meet these proposed
ther benefits besides aesthetics such as energy efficiency?
Chair Matasosky responded that there are lots of variables and that it is hard to
quantify potential savings.
Comm. Tushie added that what is being proposed is common in most cities. The
importance of this type of ordinance is to protect themselves from undesirable
buildings that may be built at the very minimum allowed under current regulations.
3
Economic Development Commission
Meeting Minutes
June 30, 2009
Mr. Olson also noted that in the case of a unique building like the former Copper
Bleu restaurant, a conditional use permit can be granted to allow buildings that may
not meet the exact requirements of the proposed ordinance, but may fit the intent of
the ordinance.
Comm. Starfield asked if this would potentially put Lakeville at a disadvantage to
cities such as Lonsdale, Farmington, and New Prague who are often in competition
with Lakeville for businesses. The struggle is balancing the desire for quality
buildings with attracting new businesses the City does r i vant to lose out on new
jobs.
Comm. Tushie responded that for a building typical, arger, tha 40,000 square feet,
the cost difference to go from a metal building t block is minima due to construction
requirements. The main cost difference will b the price of Ian
Chair Matasosky noted that Lakeville doe t make some site selection l ists because
we don't allow metal buildings. If metal buildin vi ere allowed in the zoning
ordinance, we would look more desirable toste selectors. He sited an example
where sometimes businesses t they want a metal building due to cost, but when
they actually sit down and run mbers, ck or other type of building
construction is often cheaper or d�rale.
Bike asked fl
be accepta
Tushie sugges
t e only the top/
Comm. Smith asked the EDC would sport g standards that would limit
which businesses ci ocat here.
Com`
metal
the
Comm. Staff
an industrial p
Comm. Tushie asked the gr
issue needs to looked
would be immediatelybs
y want metal in our industrial park. This
e don't want to approve buildings that
some sort of middle ground; certain types of metal that
that maybe only a certain portion of a building could utilize
eet of a new building).
that the proposed ordinance sounds so absolute. Shouldn't
like an industrial park?
Comm. Tushie responded that there are some pretty bad examples out there of
industrial buildings in cities that don't have the types of requirements that are being
proposed.
Ex- officio Member Bornhauser stated that anything that prevents business growth in
Lakeville is not a good idea.
4
Economic Development Commission
Meeting Minutes
June 30, 2009
Comm. Tushie responded that building design standards are needed.
Comm. Brantly added that utility in an industrial park should
looks except where visible to the public.
Mr. Mielke concluded that where applicable, middle ground will
issue.
4. Review and Provide Recommendation on Pr use
ImageTrend
take precedent over
be looked for on this
Chair Matasosky added that the business community need, o be heard from on this
issue.
iness Subsidy for
Chair Matasosky indicated he would be. laining from the discussion and the
subsequent vote as his company is currently working with ImageTrend on this
proposed project.
Mr. Olson introduced Mike Mc y, President f ImageTrend and Bruce Rydeen,
broker with Cerron Commercial s representing ImageTrend.
history of starting and
Mr. McBrady described his businss an
growing his business eville. lrrtageTr d is a oftware development company
that started in Lak 8 with tw i ployees and currently has over 100 full
time salaried loyees in their 33i'000 square foot building. ImageTrend is
continuing to iw its busi z Qss and create jobs at their facility in Lakeville and
anticipates the nee for ad ace to o use these employees in the future.
he is happy 1nageTrend is located in Lakeville and would
e the t tinue ,grow here.
Ison reviewed t e ED memo regarding the proposed property sale and
busin, subsidy.
Comm Emend inqut about the status of any assessments on the vacant
property.
Mr. Olson responded that the site is currently in a TIF district and is fully serviced.
He added that private ownership of this parcel will generate taxes and benefit the
TIF district and the overall property tax base when the TIF district expires.
Comm. Brantly asked about a net increase in the number of jobs as a result of this
business subsidy.
5
Economic Development Commission
Meeting Minutes
June 30, 2009
Mr. Olson responded that there will be a net job increase of a minimum of 21 jobs.
The City will document the current number of full time equivalent employees at
ImageTrend and use that number to track the job creation goal in the business
subsidy agreement.
Mr. McBrady stated that ImageTrend is a fiscally conservative company and that
their employees value stability. They added 20 jobs just this year and are continuing
to grow.
aired as
5. Business Retention Visits Summary
Comm. Longie ij
visit request.
Chair Matasosky abstain
Motion 09.06 Comms. Smith /Starfield moved to recommend to the City Council
approving the proposed business subsidy'for a sale of City -owned
property to ImageTrend to facilitate building expansions totaling
50,000 square feet and the creati of a minimum of 21 new full-
time jobs. Motion carried unanimously.
Adam Kienberger gave a repe on the business visit with Menasha Packaging
conducted by Comm. Starfield and yor Dahl.
Mr. Kienberger reviewed the EDC memo and ed that erall Menasha is satisfied
with the Lakeville business environment figt d en couraged the City to continue
focusing on infrastructure and makingeville a desirable place for people to move
to.
Plastics turned down a recent business
C x i atasos y; espo' that he and the Mayor had met with Imperial Plastics
II.
Mr K nberger added hat Imperial Plastics mentioned in their response that they
are satisfied with how they have been treated in Lakeville, but did express a concern
for traffic safety on Hamburg Avenue.
Comm. Starfield added that Menasha Packaging encourages their employees to
further their education through a tuition reimbursement program.
Ex- officio Member Bornhauser stated that the Chamber of Commerce will provide
the City with a list of businesses they have recently met with as a part of the Grow
Minnesota program so that efforts aren't being duplicated.
Comm. Longie suggested that a business visit be scheduled with Custom Stud.
Economic Development Commission
Meeting Minutes
June 30, 2009
Comm. Starfield and Mayor Dahl added that during the visit with Menasha they
mentioned that business seems to have stabilized and that packaging is a good
economic health indicator.
Chair Matasosky concluded the discussion by stating that the City is much more
approachable because of this business visit program.
6. Director's Report
Mr. Olson reviewed the Director's Report.
7. Adjourn
The meeting was adjourned at 6:50 p.m.
Respectfully submitted by:
R` T Brantl Secretary
Kienberger, y, ry
Economic Development Specialist
7
Memorandum
ConAgra Visit
City of Lakeville
Community and Economic Development
To: Economic Development Commission
From: Adam Kienberger, Economic Development Specialist
Copy: Steven Mielke, City Administrator
David L. Olson, Community Economic Development Director
Date: August 20, 2009
Subject: Business Retention Visits Summary
item No. 3
As a part of the 2008 -2010 Strategic Plan for Economic Development one of the
goals under the strategic work area Partnerships includes Exp /ore opportunities to
build relationships As a result, a business retention visit program for the Lakeville
business community was formulated. This program helps create and retain
relationships between the City and both large and small businesses throughout
Lakeville.
On July 9, 2009, EDC member Sheila Longie, Mayor Dahl, and myself met with Lee
Stearns, the plant manager from ConAgra Foods. ConAgra produces store brands
and private labels of cereals, snack bars, fruit snacks, granola bars, and popcorn
balls at their Lakeville facility.
ConAgra's main headquarters are in Omaha, Nebraska and they have their
Minnesota headquarters in Edina. Their facility in Lakeville has been here since
1974, and they indicated that this location has served them well and will likely
continue to do so in the future.
While projecting growth within their industry, Mr. Stearns noted that their facility is
able to accommodate an expansion at some point in the future when necessary, and
they are hoping to add a new production line at the Lakeville facility sometime in the
next 12 -18 months. Diversification at a facility can be important to keep a localized
issue from affecting an entire product line.
ConAgra told us that they have approximately 450 full -time employees and currently
have approximately 100 temporary employees. Historically they haven't had too
much difficulty finding quality employees locally. They did note that wages tend to
be a little higher in Lakeville, but that they find they are able to attract higher
quality workers.
One major change Mr. Stearns mentioned about how ConAgra has changed over the
past 10 years is the shift to automation. Most manual processes have become
either highly automated or highly technical. This impacts the types of workers they
now hire.
A couple of key points ConAgra made while discussing things that the City can do to
help improve the business community included:
Infrastructure is important
The Fire Department has been really good to work with
They appreciate the City being present to work with them on issues
No follow -up on any specific issue was requested by ConAgra at this time.
Advanced Wireless Communications Visit
On August 19 EDC member Bob Brantly and Dave Olson visited Advanced Wireless
Communications (AWC) and met with Ben and Ken Coons who are co- owners and
CEO and President respectively. AWC is in the business of selling and servicing on-
site communications systems (primarily wireless) which mostly consists of two -way
radios. They were formerly in the retail cellular phone business but sold off this
portion of their business in 2008.
AWC has been in Lakeville since 2000 and in December of this year will be
celebrating 6 years in their current location at 20809 Kensington Blvd. The City sold
the land on which their current building is located and also entered into a business
subsidy agreement on the sale of this land. AWC has all of their company
operations located in Lakeville.
AWC has a number of different market niches for their products and services. These
include a number of national and regional retailers including Target, Home Depot,
Gander Mountain, Cub Foods, Safeway and others. They sell and service two radios
that are used in these stores as well as provide other products including "Instant
Assistant" which is a patented product they developed and is used by large retailers.
AWC is also increasing there business by providing on -site communications products
and services to both K -12 schools and colleges and universities. The newest market
niche that is also their fastest growing is long -term care facilities. AWC is providing
a number of products and services to these types of facilities which is some cases
requires changing from older hard wired systems to wireless systems. They are also
required to obtain approval from state agencies that license these types of facilities.
While some of these market niches are delaying purchases, overall AWC expects
their business to continue to grow. They also feel that their existing facilities will
accommodate their growth over the next 3 -5 years.
AWC currently employs approximately 60 full -time employees and only about 3 part
time employees. They are currently operating a second shift for a number of their
service technicians to make better use of the expensive equipment required for each
technician. AWC indicates that they will be adding additional employees and that
the labor supply for the types of positions they are trying to fill is the best that it has
been in a number of years.
AWC indicated that they are very satisfied with having their business located in
Lakeville. They were asked whether the current tax climate was inhibiting their
growth and they indicated that it was not a major factor. They indicated that the
current private lending climate was much more of an issue and concern. AWC did
request contact information for a number of agencies which staff provided. No
other additional follow -up was requested.
Memorandum
To: Economic Development Commission
From: David L. Olson, Community and Economic Development Director
Copy: Steve Mielke, City Administrator
Adam Kienberger, Economic Development Specialist
Date: August 20, 2009
Subject: DEED MIF Application Genesis Poly Recycling
?m No
City of Lakeville
Community and Economic Development
The City has been working with a business interested in locating in Lakeville called
Genesis Poly Recycling. They are a rigid and film plastic materials recycler that is
looking to restart operations in Lakeville at the new spec building in First Park Lakeville
at 9150 217th St. West.
The company was formerly operated as AGSI in Savage and ceased operations there in
2008. Management from AGSI are relaunching the company and are working on
securing financing for their operations.
The company defines their business operations by the following:
"Genesis Poly Recycling specializes in recycling agricultural, horticultural, and
food processing plastics, material that has historically been "unrecyclable The
company works with agriculturists, horticulturists, waste management
professionals, and state agencies and associations to create solutions for tough
recycling challenges."
Genesis has as the main component of their business plan to recycle materials such as
agricultural, horticultural, mixed post consumer and food industry plastics. The end
product of this recycling process is recycled plastic pellets that can be sold to
businesses that utilize this type of material in their manufacturing process. Genesis is
also exploring options that would result in them manufacturing their own plastic
finished products.
Staff has been in contact with Genesis Poly Recycling, the Minnesota Department of
Employment and Economic Development (DEED), USDA, MPCA, and US Bank to help
facilitate this business locating in Lakeville. Genesis is currently in lease negotiations
with First Industrial to lease the new 285,000 square foot spec building that was
constructed in First Park Lakeville located at the intersection of Dodd Blvd. and County
Road 70.
In our discussions with DEED, they have indicated that Genesis Poly Recycling is a
candidate for the Minnesota Investment Fund (MIF) program for up to a $500,000 low
interest loan. The MIF program is setup as a grant /loan to the City which in turn makes
a loan to the business. The City becomes the conduit for the loan funds from the State
to the business. This is the same program that the City utilized for New Morning
Windows in 1995.
Typically the loan made by the City to a business is at a below market interest rate and
is able to be subordinated to the primary lender for the project. A significant benefit to
the City with this program is that 20% up to $100,000 of the loan repayment is able to
be retained by the City for use in an economic development revolving loan fund. The
MIF loan is proposed to be used to purchase equipment to be used in the startup of
their recycling manufacturing process. DEED will not consider approval of an
application for this program until the other sources of financing for the project have
been approved.
Genesis is proposing to create up to 72 jobs in their first year. DEED only allows jobs
that pay in excess of $13 per hour to be counted in meeting the job creation goals for
the project. The majority of the 72 jobs to be created in the first year would exceed
this minimum hourly wage and would be between $13 to $18 per hour. Genesis is
indicating that they could create as many as 193 to 310 jobs after five years.
Staff is working with Genesis representatives to complete the necessary DEED
applications. Prior to entering into a grant loan agreement with DEED, the City will be
required to hold a public hearing on the proposed business subsidy. The EDC has
previously provided a recommendation to the City Council on proposed business
subsidies prior to the City Council acting on any proposed business subsidy agreements.
Requested Action:
Staff recommends that the EDC provide the City Council with a recommendation to
apply to the Minnesota Department of Employment and Economic Development for up
to $500,000 in Minnesota Investment Fund loan dollars for Genesis Poly Recycling.
Memorandum
The following is the Director's Report for August of 2009.
Building Permit Report
item No.
City of Lakeville
Community and Economic Development
To: Economic Development Commission
From: David L. Olson, Community and Economic Development Director
Copy: Steve Mielke, City Administrator
Adam Kienberger, Economic Development Specialist
Date: August 25, 2009
Subject: August Director's Report
The City issued building permits through July with a total valuation of $39,491,190. This
compares to a total of $45,018,807 for the same period in 2008. Included in this valuation
were commercial and industrial permits through July with a total valuation of $3,567,500.
This compares to a total commercial industrial valuation of $11,656,900 for the same
period in 2008.
The City issued permits for 10 single family homes in July with a total valuation of
$2,518,000. This compares to 14 single family home permits in July of 2008 with a total
valuation of $4,284,000. The City has issued a total of 64 new single family home permits
through July compared to 86 during the same period in 2008. The City issued no permits
for townhome and condo units in July which compares to zero townhome and condo
permits issued in July of 2008.
Update on the Sale of the former Hearth and Home (Heat n Glo) Building
Malt -O -Meal has signed an agreement to purchase the former Hearth and Home building on
Kensington Blvd. in the Fairfield Business Campus. Malt -O -Meal announced several months
ago that it planned to relocate approximately 120 corporate management and
administrative employees out of the company's manufacturing facility in Northfield. (See
attached article from the Northfield News.) The move is being done primarily for food
production safety reasons (e.g. moving employees not directly involved with the food
production process out of this facility) as well as the fact that many of their management
employees live in the south metro area.
Staff has been working with Malt -O -Meal and their representatives as they complete their
due diligence on their proposed acquisition of this property. The due diligence period is
scheduled to be completed by September 3 and the closing on the purchase is scheduled
to take place on September 30 Malt -O -Meal has indicated that they plan to be operational
at this facility by the end of 2009.
Image Trend Project
The City Council approved the Contract for Private Development for the sale of City owned
property to ImageTrend at their July 20 meeting consistent with the recommendation of
the EDC. The dosing of the sale of this property is scheduled for August 25 ImageTrend
plans to start construction of the first of two expansions in the Spring of 2010.
Continued Discussion of Possible Zoning Ordinance Revisions
Staff is working on preparing information for a public Open House on the proposed zoning
ordinance amendments dealing with exterior material requirements for new commercial and
industrial buildings. This open house will likely take place in mid September. This matter
will be brought back to the EDC for further discussion at the on September 29 meeting.
Development Update
The City issued the permit earlier this month and construction has started on the new Ace
Hardware store to be built downtown on the east side of Holyoke Avenue adjacent to
Market Plaza. This new 16,000 square foot store will replace their existing store across the
street. Mark Hotzler is now the owner of the existing Ace Hardware building and is actively
marketing the building to prospective tenants. The new Ace Hardware store is scheduled to
be completed by December 1s of this year.
Transit Update
Construction is nearing completion on the 750 car parking ramp structure for the Kenrick
Avenue Park and Ride located north of Fleet Farm. The paving of the site still needs to be
completed. The new "slip" ramp for the buses to enter I -35 is being completed by Friedges
Construction under a separate contract. Express transit service is scheduled to commence
on September 28th with six a.m. trips to Downtown Minneapolis and six p.m. trips back to
Lakeville. The Metropolitan Council is scheduled to award the contract to provide the actual
bus service on August 26 Two private bus service providers submitted proposals to the
Met Council to provide the service, however MetroTransit's proposal was the lowest in terms
of cost and is expected to be awarded the service contract.
Construction is scheduled to begin the Week of August 24 on the 200 car park and ride
facility which will be a surface lot along Cedar Avenue at 181s Street which is approximately
1/4 mile south of the Cub Foods. The Metropolitan Council recently awarded a bid to
Friedges Construction to construct this lot. The Met Council has acquired enough land to
have a total of 390 spaces at this facility in the future. The Lakeville Cedar Avenue Park
and Ride facility will have 5 a.m. express trips which will be stopping at the new Apple
Valley Transit Station and then will have express service to Downtown Minneapolis. There
will also be five return trips in the p.m. This service is also scheduled to begin by the end of
September and will be provided by the Minnesota Valley Transit Authority.
Pioneer Plaza Planning Study
Staff continues to work with a consultant on a planning study of the Pioneer Plaza area in
Downtown and the adjacent private and public parking lots west of Pioneer Plaza in the Ben
Franklin block. Several preliminary concepts developed by the consultant for this area were
reviewed with the Downtown Lakeville Business Association and the Dakota County CDA. A
second project open house will likely be held in September to obtain comments and
feedback on the preferred concept. The goal is to complete the study by this fall so that
grant funds for possible improvements in this area can be applied for prior to the end of the
year.
Foreclosure Update
Attached is the monthly update on foreclosures in Dakota County provided by the Dakota
County CDA. There have been 25 Sheriff Sales as a result of foreclosures in Lakeville in
July. There have been a total of 131 Sheriff's Sales for the first 7 months of this year. This
compares to a total of 286 Sheriff's sales in 2008.
Update On Possible Changes to the Monthly Director's Report
Staff is working on developing a new format and method of distribution of possibly a bi-
monthly Director's report. The primary objective is to provide the type of information
included in the Director's report to a larger segment of the business community. An update
on this issue and a copy of this new format will be provided at the September meeting.
The next EDC meeting will be held on September 29 at 5:00 p.m.
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c DA Dakota County
Community Development Agency
The Tale of Three Homes
To: Dakota County Cities
From: Dan Rogness, Director of Community Revitalization
Date: August 17, 2009
Re: Foreclosure Update
HOME
OWNERSHIP
Three similar, single family homes in one neighborhood of Empire Township tell a story of
significant property value change since 2006. The three homes have the same general
characteristics, including:
Total finished square feet ranges from 2,410 to 2,770
Each has four bedrooms and 2.5 baths
Each was constructed in 2006
Dakota County's payable 2010 Estimated Market Value ranges from $321,100 to $334,500
Despite the similarities, a significant change in purchase prices over the past three years help
demonstrate how the 2005 -06 value of residential property was probably at its peak:
House #1 purchased on 6/01/06 for $524,900
House #2 purchased 8/01/2007 for $395,000
House #3 purchased 7/01/2008 for $321,120
Based on this example, it appears that the value of homes in this neighborhood decreased by
almost 40 percent during a short period of time. This situation is happening in many areas of
Dakota County, and tends to exacerbate the situation for those who find themselves struggling
with mortgage payments. The CDA's housing counselors encounter declining property values
as a common area of concern in most foreclosure situations.
Dakota County Stats July 2009
of Sheriff Sales in July 182 (compared to 188 in July 2008)
Total Sheriff Sales for 2009 1,032 (compared to 1,294 Jan. July, 2008)
of Notices of Pendency Filed in July 351
Total Notices of Pendency Filed for 2009 2,336
c A Dakota County
Community Development Agency
In The News
A Notice of Pendency is filed by a mortgage company's attorney as official notification that the
foreclosure process has begun. Not all of these result in sheriff sales. Pages 3 and 4 of this PDF
file have Sheriff Sale and Notice of Pendency statistics for each city.
Mapping Using Dakota County GIS
http://gis.co.dakota.mn.us/website/dakotanetgis/
The Dakota County Office of GIS is updating the 2009 Foreclosures and Notice of Pendency
layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel
or Mary Hagerman with the Office of GIS at (952) 891 -7081.
Provided in this PDF file are a few notable foreclosure articles that were published in the last
month. Among the points of interest:
A national article warning about a danger of foreclosed, abandoned homes pools.
With no one to attend to these homes, a backyard pool can be life- threatening
especially to curious children.
The number of U.S. households to receive a foreclosure filing increased by 15 percent in
the first half of 2009. The foreclosure crisis affected 1.5 million homes in the first six
months of this year, according to a report released by RealtyTrac Inc.
A St. Paul- based lawyer group issued a lawsuit alleging that the government's recent
program, Making Home Affordable, is not operating as it should.
If you have any other concerns, please call me at (651) 675 -4464 or send me an e-
mail at drogness(?I dakotacda.state.mn.us.
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Foreclosed homes' pools can be death traps TODAY Technology Money Page 1 of 2
tk MSNBC.com
Foreclosed homes' pools can be death traps
Recession fallout: Abandoned swimming pools lure children, breed disease
By Mike Celizic
TODAYShow.com contributor
updated 8:26 a.m. ET, Wed., July 8, 2009
The abandoned homes proliferating in neighborhoods across the country are more than one of the most
glaring signs of the continuing recession. In addition to being eyesores, they can also be death traps for
curious children.
That is a nightmare that Secrena Erwin lives every day. Last July, her 5- year -old daughter, Sheyenne Jenkins,
went out to play in the backyard of their Avon, Ind., home while her grandparents were baby- sitting her.
But instead of staying in her yard, Sheyenne wandered into the adjoining property an abandoned,
foreclosed home with a backyard pool. The pool was still filled with water. It had a pool cover, but with no one
to tend it, the cover had sagged beneath the surface of the pool water over time.
Somehow, Sheyenne fell in. By the time she was found, it was too late.
Who's to blame?
"I'm angry," Secrena Erwin told NBC News for a story reported Wednesday on TODAY, the pain of her loss still
fresh. "I'm angry that nothing was done. I'm angry that my daughter was taken away because nothing was
done."
NBC News' Kerry Sanders observed that "Sheyenne's tragedy is a worst -case example of the unintended
consequences of foreclosure."
With foreclosures being filed at a record pace, Sanders reported that an estimated 4 million Americans now
live next door to a home that's in foreclosure. And the number is growing.
For Erwin, the loss is even more painful because there seems to be no one to blame for the dangerous
situation that claimed her daughter's life. She has a lawyer, but no one not the bank, the former owner, or
the city seems to have a clear legal responsibility.
"The problem here is we are in limbo," Dana Hada, Erwin's attorney, told NBC News.
In fact, Alan Thorup of the Indiana Mortgage Bankers Association told NBC News, banks could actually be sued
for attempting to improve the properties they take over from owners in default.
"If lenders do go in and they try to make repairs or they try to do things to improve the situation, they could
be sued. So why go down that path Thorup said.
Other hazards
Sheyenne's death is an extreme example of the dangers of abandoned houses, but not the only one. In May,
an 11- year -old Pittsburgh girl was dragged into an abandoned home and sexually assaulted. Last November in
Flint, Mich., a man living in an abandoned house died when the building caught fire.
Other dangers abound. With no one to maintain them, foreclosed homes make tempting targets for vandals.
Once doors and windows are broken, animals may move in, along with mold and rot. Swimming pools turn
into ponds, the dark and dirty water a perfectobreeding ground for mosquitoes, some of which can spread
such diseases as the West Nile virus.
Here and there across America, municipalities are beginning to take action.
http:// www .msnbc.msn.com/id/31795988 /ns/ today _technology_and_money /print/1 /display... 7/13/2009
Foreclosed homes' pools can be death traps TODAY Technology Money Page 2 of 2
Sanders reported that Indio, Calif., passed a local ordinance that requires banks to maintain the properties
they have foreclosed upon. Citibank recently paid a stack of fines after letting homes and pools fall into
disrepair, he said.
The bank responded that "it takes prompt action when notified."
Indio Police Chief Brad Ramos said the town is not taking the problem lightly. "If you continue that, you know
what, we will fine you and we will also get an arrest warrant for the CEO of the bank," he told NBC News.
A Florida town, Cape Coral, demands that banks register foreclosed properties with the municipality at a $150
fee, which goes into a fund the town taps to maintain the properties. Murrieta, Calif., has a similar program.
But none of that helps Secrena Erwin, who is left with painful memories of the bright and happy 5- year -old
she lost. A year later, Sanders reported, Sheyenne's room remains untouched: "Her pajamas are still on the
floor [along with] stuffed animals she threw out of the bed."
2009 MSNBC Interactive. Reprints
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2009 MSNBC.com
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Foreclosures up 15 percent in first half of 2009 Real estate Page 1 of 2
MSNBC.com
Foreclosures up 15 percent in first half of 2009
Widening crisis affected more than 1.5 million homes in that interval
The Associated Press
updated 12:11 a.m. ET, Thurs., July 16, 2009
WASHINGTON The number of U.S. households on the verge of losing their homes soared by nearly 15
percent in the first half of the year as more people lost their jobs and were unable to pay their monthly
mortgage bills.
The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year,
according to a report released Thursday by foreclosure listing service RealtyTrac Inc.
The data show that, despite the Obama administration's plan to encourage the lending industry to prevent
foreclosures by handing out $50 billion in subsidies, the nation's housing woes continue to spread. Experts
don't expect foreclosures to peak until the middle of next year.
Foreclosure filings rose more than 33 percent in June compared with the same month last year and were up
nearly 5 percent from May, RealtyTrac said.
"Despite all the efforts to date, we clearly haven't got a handle on how to address the situation," said Rick
Sharga, RealtyTrac's senior vice president for marketing.
More than 336,000 households received at least one foreclosure related notice in June, according to the
foreclosure listing firm's report. That works out to one in every 380 U.S. homes.
It was the fourth- straight month in which more than 300,000 households receiving a foreclosure filing, which
includes default notices and several other legal notices that homeowners receive before they finally lose their
homes. Banks repossessed more than 79,000 homes in June, up from about 65,000 a month earlier.
On a state -by -state basis, Nevada had the nation's highest foreclosure rate in the first half of the year, with
more than 6 percent of all households receiving a filing. Arizona was No. 2, followed by Florida, California and
Utah. Rounding out the top 10 were Georgia, Michigan, Illinois, Idaho and Colorado.
The Obama administration in March launched a $50 billion plan to give the lending industry financial incentives
to modify mortgages to lower payments, but it's off to a slow start.
As of early July, about 130,000 borrowers were enrolled in three -month trial modifications under the plan, and
25 mortgage companies have signed up to receive potential payments of up to $18.6 billion, according to the
Treasury Department. But analysts and housing counselors say it isn't having much of an impact.
"The plan isn't going well, at least not yet," said Mark Zandi, chief economist at Moody's Economy.com. "It's a
creative plan with lots of incentives, but it's very complex."
In testimony prepared for delivery at a Senate hearing on Thursday, Bank of America executive Allen Jones
said the company has about 80,000 loan modifications in the works under the new government guidelines,
including some that aren't in the three -month trial phase yet.
"We have achieved this level of success by devoting substantial resources to this effort," Jones said, noting
that the company has more than 7,000 employees handling calls and working on modifications. Industry
experts, however, say the response from most mortgage companies has been lackluster.
"They've been slow to make sure they understand it and put all the processes and people in place," said Joel
Lewis, vice president of financial services at Convergys Corp., which runs call centers for the financial industry
and other companies.
http:// www .msnbc.msn.com/id/31930813 /ns/ business real_estate /print/ 1 /displaymode/ 1098/ 7/16/2009
Foreclosures up 15 percent in first half of 2009 Real estate Page 2 of 2
A week ago, Treasury Secretary Timothy Geithner and Housing Secretary Shaun Donovan sought to ramp up
pressure on the industry, saying in a letter to participating mortgage companies that the industry needs to
"devote substantially more resources to this program for it to fully succeed." They also summoned mortgage
executives to a July 28 meeting with top government officials.
Though the program was launched months ago, few companies are upgrading their computer systems to
process loans rapidly, said Bill Kelvie, chairman of Overture Technologies in Bethesda, Md.
"They need to automate the process, and they need better technology, and they need to do this quickly," he
said.
2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or
redistributed.
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Homeowners ask government in lawsuit: Where's the foreclosure relief? TwinCities.com Page 1 of 3
TwinCities
Homeowners ask
government in lawsuit:
Where's the foreclosure
relief?
By Christopher Snowbeck
Pioneer Press
Updated: 07/29/2009 12:14:14 AM CDT
Homeowner Johnson Sendolo says he doesn t know why the government their monthly mortgage payments. Now, both have
denied his application to modify his mortgage loan under a $50 billion managed to get new jobs and have steady income,
initiative designed to slow foreclosures. Now, the Woodbury man has
joined a court challenge of the program. (Pioneer Press: Richard Marshall but they need a loan modification to get current and
Johnson Sendolo thought a new federal program to
prevent foreclosures would help him keep his
Woodbury town home.
But that hope which financial counselors said
was justified, even though Sendolo lost his job last
year turned out to be illusory.
In June, Sendolo's house was subject to a
foreclosure sale. The 50- year -old said he still
doesn't understand why he didn't qualify for a
government- backed modification of his primary
mortgage.
Neither does Sendolo's attorney, Mark Ireland of the
St. Paul -based Foreclosure Relief Law Project. On
Tuesday, Ireland sued in federal court on behalf of
the Woodbury man, a woman in Brooklyn Park and
other similarly situated plaintiffs.
The lawsuit argues that the governments Home
Affordable Modification Program a $50 billion
initiative that the Obama administration rolled out in
March is failing troubled borrowers by not giving
them proper notice of why modification applications
are being denied. What's more, the program fails to
provide a way for homeowners to appeal those
decisions, the lawsuit alleges.
The legal effort seeks a halt to foreclosures in
Minnesota until the government fixes the program,
which Ireland believes was designed specifically for
people like Sendolo and Nichole Williams, the
Brooklyn Park plaintiff.
"When the economy faltered, they were both laid
off," the lawsuit says of the plaintiffs. "Eventually,
after depleting their savings, they fell behind on
make their mortgage loan sustainable."
In response to the lawsuit, an official with the U.S.
Treasury Department one of the groups
responsible for the modification program, and a
defendant in the case said Tuesday that the
Obama administration is committed to ensuring the
program provides relief in a fair and transparent
manner.
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"We take
all homeowner concerns seriously, and we are
reviewing the complaint now," the official said in a
statement.
The president said the loan modification program is for
everyone. It came for my turn, and they said no, says
Johnson Sendolo, 50, whose Woodbury town home went
into foreclosure this year after he was laid off. (Pioneer
Press: Richard Marshall)
The lawsuit isn't the only forum in which the
government is taking heat.
Last week, a report from the U.S. Government
Accountability Office said the program lacked
transparency and accountability. Treasury
Department officials met Tuesday in Washington
with mortgage service companies that are
participating in the program to discuss ways to
improve the modification effort.
Still, the class- action lawsuit in Minnesota is
unique, said Diane Thompson, an attorney who
works with the National Consumer Law Center in
Boston.
"There are a handful of individuals across the
country that have tried to use problems with (the
modification program) as a defense against
foreclosure, but there has been no other public
interest suit that I know of," Thompson said.
Sendolo wishes he didn't have to be part of such a
novel undertaking.
The Woodbury resident came to the United States in
1984 as the violence began to escalate in his home
country of Liberia. He had worked for his country's
health ministry, and found jobs here working as a
medical record coder.
After living in California for more than a decade,
Sendolo moved to Minnesota with his family and
bought his Woodbury home in September 2005 a
time when the Twin Cities housing market was hot,
and still getting hotter.
For the first three years of his mortgage, Sendolo
made every loan payment and was careful never to
fall behind, the lawsuit states. But he lost his job last
September.
Sendolo continued making payments until he
depleted his savings in December. After falling
behind, he landed a part-time job and started
collecting some rent from his adult son, who had
moved back home. With a modification of his
primary mortgage, Sendolo believes his reduced
income still would have been enough to resume
making monthly payments.
"Sendolo was a good candidate for a loan
modification because, at the time, he had income
through a new job and continues to have income,"
the lawsuit states. "(He) meets all of the eligibility
requirements for a loan modification through (the
federal program)." But the company that services his
mortgage denied the request in April.
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TwinCities
"They didn't give any explanation," Sendolo said.
By state law, he can continue to live in his town
home during a six month "redemption period,"
during which Sendolo has an opportunity to pay
back the full amount of the mortgage loan. In the
meantime, his lawyer is seeking an injunction to
prevent foreclosures in Minnesota from going
forward.
"A federal program can't be administered
arbitrarily," said Ireland, the attorney. "There has to
be rules. Otherwise, mistakes happen, and people
don't get the benefit they're entitled to."
Christopher Snowbeck can be reached at 651 -228-
5479.
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Towns rethink plans to enhance communities f StarTribune.com
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Towns rethink plans to enhance
communities
Cities across the south metro are
taking advantage of the construction
Tull to make sure that what goes up
when the crash ends is community
enhancing. But they are encountering
some pushback.
By DAVID PETERSON and KATIE HUMPHREY, Star
Tribune staff writers
Last update: August 16, 2009 9:18 AM
Lakeville wants more brick facades and less
precast concrete.
Belle Plaine wants to keep from turning into a
forest of blinking highway signs.
Farmington wants to find a real role for its
historic downtown, even as suburbia envelops it.
At a time when there isn't a whole lot being built,
cities all across the south metro area are taking
advantage of the lull to try and make sure that
what does go up when the crash ends is better,
and more community enhancing, than what got
built before.
But they are also encountering pushback from
business owners.
"I think I have the right to make decisions for
myself and not have others dictating what I can
and cannot do when I am not harming anyone in
this community," Barb Johnson, owner of several
historic buildings in downtown Jordan, told
planning commissioners during a heated meeting
last week over new standards for downtown
buildings.
To arm themselves against complaints that fancy
new requirements will bleed businesses of their
profits, cities are going so far as to price out the
differences between brick and stone and their
artificial substitutes. Lakeville, for instance,
discovered that a massive Cub Foods store can be
built of brick at a surprisingly reasonable rate.
Developers say it isn't fair to cast them as the bad
guys.
"It goes both ways," said industry spokesman Pat
Mascia, senior vice president of Minneapolis
operations for the national commercial real estate
firm Duke Realty Corp. "You don't want to own a
building that is the ugliest building on the block.
You want to try to fit within existing surroundings
and create value with your investment. And
aesthetics can add to value."
At the same time, though, he added, cities aren't
always realistic about what they can demand. He
laughed out loud when told that one semi -rural
community in the south metro area is brandishing
images of downtown Wayzata as a guide to what it
httn: /www.startrihune.com/ local south 533139X7. html ?elr= KArksLckDXEODIJoaEvavP. 0X/17/2009
Towns rethink plans to enhance communities I StarTribune.com
StarTribune.com
Page 2 of 3
wants to see by way of landscaping of parking
lots.
"If you're requiring the gold standard when it
should be the bronze standard," he said, "it
doesn't usually happen that way. We wouldn't do
The West End" an upscale lifestyle center now
rising at the intersection of Hwys. 100 and 394 in
St. Louis Park "in Otsego."
But cities closer in have the same disputes.
Burnsville recently bumped up against the worries
of the developers of a vacant parcel in its newly
created downtown area, Heart of the City, over
design standards calling for 60 percent of surface
areas to be brick, stone or glass, with no
horizontal siding. That, the developer said, was
not likely to pencil out.
Savage, which installed new standards for its
historic downtown area along Hwy. 13 in 2001, is
helping bridge the gap by dishing out grants to
building owners. The old main drag, says Mayor
Janet Williams, is beginning to look "mighty nice
for not a huge investment in dollars." Visiting last
Sunday for the weekly farmer's market, she saw
"workers putting the stucco on the latest rehab
grant project across from the public square."
Putting some new in the old
Farther out, on the suburban fringe, Farmington is
trying to work out what the future can be for a
downtown that's still very much intact but is
always threatened by surrounding suburbia.
The city's new comprehensive plan outlines a
vision of boutiques, craft and antique stores and
professional offices in a "pleasant, attractive and
aesthetically pleasing" downtown. The
development lull is helping by giving officials time
to reflect and to install new rules, said city
planner Lee Smick.
"We're finally catching up," Smick said. "When a
new building comes in, we want to make certain
that it still portrays our historic heritage."
Draft standards being looked at by the city's
planning commission require at least 70 percent
of a visible exterior to be finished with clay, brick,
stucco, natural stone or ornamental concrete.
And they specify that "blank, windowless walls
shall be avoided wherever possible."
"Big box" buildings would not be allowed, and any
large buildings would need to be broken into
smaller facades to simulate a line of smaller
storefronts.
A new ingredient in the mix in recent years has
been the more aggressive involvement of anti-
sprawl activists and foundations in financing
small cities' attempts to impose their will. Belle
Plaine hired the University of Minnesota's Center
for Rural Design two years ago to help devise new
rules. Jordan today is benefitting from a grant
from the McKnight Foundation in carrying out a
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similar process.
One new reality that is helping soothe these
conflicts, developer Mascia said, is that there's no
longer just a choice between ultra- costly but nice,
and cheap but cheap looking.
Thanks to new technologies, he said, "you can
hardly tell the difference between precast brick
and real brick. But the cost difference is
substantial. Precast today can be spectacular
looking. The aesthetics are almost identical."
David Peterson 952- 882 -9023
Katie Humphrey 952- 882 -9056
11t1-n•/ /wur w etartrihrne rnm /1nr.a /ennth /5111 ICR71, tm17Plr =KArlreT.rkTlRFIlT)TTnaPvnvP 11R /17PM -119
Sun Newspapers MNSUN.com Lakeville software company expanding workforce, faci... Page 1 of 2
StiN
44 eonfafunit nDr9Der
Lakeville software company expanding workforce, facilities
By Joseph Palmersheim Sun Newspapers
(Created: Wednesday, August 12, 2009 10:10 PM CDT)
A Lakeville- based software company will add more than 20 new employees and expand nearly 50,000
square -feet during the next four years as part of a deal reached with the city of Lakeville.
Under terms of a business subsidy agreement unanimously approved at the Aug. 3 Lakeville City
Council meeting, ImageTrend will add a minimum of 21 new jobs and develop two 20,000- 30,000
square -foot expansions on formerly city -owned land near its headquarters at 20885 Kensington Ave..
If the company manages to expand and add jobs by November 2013, the city will reduce the land's
$627,589 cost by two- thirds, to $209,196.
Mike McBrady started ImageTrend in 1998 in the bedroom of the home he and his wife, Valerie,
shared in Lakeville. Now, the company has more than 100 full -time employees in its 33,000 square
foot building. The Sun Current interviewed McBrady in 2006, and at the time the company had 56
employees, having hired only 83 people in its (then) eight- and -a -half year existence.
"When we find people, we keep them," McBrady said in the 2006 interview.
Now, he plans on adding another 21 new software developers to the team.
"We have a very aggressive recruiting program here, and we are working with colleges in the five
state area," McBrady said. "We have a number of internships, and we actually have condos in
Lakeville where we'll move them in. We have a history of hiring them when they graduate."
David Olson, Lakeville's director of economic development, said the business subsidy is a unique
arrangement done "once every two to three years" with major projects, like Lifetime Fitness.
"In this case, its a local business that was a startup in Lakeville that now employs more than 100
people," Olson said. 'These are quality, high -tech, well -paid jobs in the community. The fact that a
company like this is going to continue in Lakeville is the benefit, in terms of more tax base and jobs."
The subsidy has its roots in negotiations between the company and the city this spring. The site
ImageTrend will expand into was previously earmarked as a potential site for future fire station,
Olson said. When an alternative fire station site was found across the street, the site was opened for
development.
"It made sense to make that and available to build additional buildings and create more jobs," Olson
said. "ImageTrend is in a business campus that we developed in the 1990s, and lots were sold off for
companies out there. We had one lot remaining for development, had their request, and were able to
negotiate the agreement."
Olson said the subsidy's estimate of 21 jobs was a "a conservative number," and said the city was
projecting significantly higher job growth at the company during the next four years based on
ImageTrend's track record.
We tend to error on the conservative side, and its quite likely that the number of jobs created could
be several times [the estimate]," he said. "We could be looking at 60 to 70 jobs created during the
next four years. Not only are we creating new jobs, were training old ones. Business retention can
sometimes be as important as business growth. Had ImageTrend not been able to expand, they
would have had to look elsewhere, and those existing jobs would have been in jeopardy."
McBrady said it would have been easy to buy another building in the current economic climate, but
said it would have been difficult to connect it to existing facilities. The location has an additional
benefit not readily apparent to the naked eye.
http: /www.mnsun.com /articles/ 2009 /08/17 /news /cw13imagetrend.prt 08/17/2009
2A August 13, 2009 DAKOTA COUNTY TRIBUNE BUSINESS WEEKLY
by Derrick Williams
DAKOTA COUNTY TRIBUNE
Dave Olson said he's
been approached by other
communities interested in
capturing Lakeville's suc-
cess.
But to this point, there
isn't another community, at
least not in Dakota County,
that's been able to recapture
the unique success that the
Downtown Lakeville Business
Association has managed.
"Other communities
have contacted us about the
(DLBA) looking to learn
more about how it's done
here. Other cities want to
create similar organizations,"
said Olson, Lakeville's com-
munity and economic de-
velopment director. "But at
the end of the day, I suspect
businesses in those commu-
nities aren't willing to pay
for it."
That's what makes the
DLBA such a unique entity,
Olson said.
In the summer of 1998,
looking to bolster an orga-
nization to help promote
and revitalize Lakeville's
downtown, business own-
ers petitioned the city to tax
them.
As a result, the Lakev-
ille City Council created a
taxing district, which now
serves as the main source of
DLBA funding.
"It's not common to find
businesses willing to tax
themselves," Olson said.
Today, the DLBA re-
ceives 827,000 annually
from the taxing district,
through which the city as-
sesses commercial property
owners a sum based on the
tax capacity of their proper-
ties. Most of those taxes are
handed down by property
owners to the businesses
that lease space in buildings
assessed the tax.
The DLBA was created in
1996, Olson said, and began
trying to start revitalization
efforts along Holyoke Av-
enue, Lakeville's downtown
main street.
Soon, Olson said, busi-
ness owners realized they
needed a funding source.
"It's hard to start doing
things unless you have a
budget in place," he said.
The creation of the tax
district wasn't unanimous,
but it was supported by more
than 75 percent of business
owners.
In the 11 years since the
district was approved, many
things have changed, ac-
cording to DLBA director
Judy Tschumper.
In 1998, one of the main
goals of the DLBA was to
balance the number of re-
tail and service-based busi-
nesses, which was lopsided
in favor of services.
Tax district helps local
small businesses succeed
After 11 years, Downtown Lakeville Business Association still a unique entity in county
In Brief
The Downtown Lakeville Business Association organizes many events throughout the
year to attract people to the downtown area. Events include the St. Paul Farmers' Mar-
ket, above, the Downtown Dash, below, Wednesdays on Main and Holiday on Main.
The events help promote downtown businesses, says the organization's directorJudy Ts-
thumper.
F
happened,"
Tschumper said.
Today, the main purpose
of the organization is less
centered on revitalization
and more on promotion, Ts-
chumper said.
The main role (of the
DLBA) today is promotion
of the downtown and bring-
ing people down here," Ts-
chumper said.
The DLBA hosts a num-
ber of events throughout the
year, including the St. Paul
Farmers' Market, Wednes-
days on Main, the Harvest-
`And that's
For more information on the Downtown Lakeville Business Association,
contact Judy Tschumper at e-mail dlba@trontiernet.net, call (952) 985-
0517 or go online at (www.downtownlakeville.com.
The association includes about 70 member businesses.The executive
board includes: Nancy Smith, president; Paul Haglund, vice president;
Mark Hotzler, director; Peter Falange, director.The advisory board includes:
Rod Borg, Scott Bakos,Amy Povroznik,Jon Koznick,Annie Hettaus and
Candy Retka.
Festival, the Lakeville Arts
Festival, Holiday on Main
and more.
"We can tell, and so can
the business owners here.
that events downtown drive
business, "Tschumper said.
Olson said the DLBA has
done a great job promoting
the downtown environment
to businesses.
'I got to believe (the
DLBA) is helping create an
environment where business-
es want to come," Olson said.
Jean Kemmer, who co-
owns Isabella Collections, a
1
women's boutique in down-
town Lakeville, said she
and her business partner
made the move to down-
town largely because of the
DLBA and the benefits it
provides.
"We were kind of on our
own in our old place," Kem-
mer said of her old store lo-
cated in a strip mall just off
Kenrick Avenue near Inter-
state 35. "There was no net-
working at least not like
we have downtown."
And Kemmer said she's
noticed another benefit.
Downtown Lakeville's main street, Holyoke Avenue,
also serves as the home to the Downtown Lakeville Busi-
ness Association, an organization dedicated to promoting
downtown business and keeping the shops viable. Funding
for the organization is provided through a taxing district,
limited to downtown businesses.
"There's so much net-
working between business-
es," Kemmer said. "It's won-
derful."
Tschumper said the net-
working has occurred be-
cause the 70 DLBA mem-
bers are cohesive and like
working together.
"It's a consortium of these
70 businesses and they're
not really competing against
one another, but working as
a group," Tschumper said.
"The retailers are a prime
example. They're finding
creative ways to get folks
downtown and into each
other's shops."
One such way is through
an event called "ladies night
out," where the boutique
owners and a few other busi-
nesses are staying open lon-
ger and encouraging women
to shop downtown.
"As a business owner,
having the support of both
the DLBA and other, simi-
lar businesses is beneficial,"
Kemmer said. "It's nice to
have a promoter, because, as
a business owner, I simply
don't have the time to do it
myself."
Both Kemmer and Ts-
chumper feel the DLBA's
model would be advanta-
geous for other communi-
ties.
`Seeing the power of a
small group is rather ex-
citing," Tschumper said.
"An organization like (the
DLBA) is so totally differ-
ent than the benefits you
get through something like
the chamber of commerce.
They're nothing alike."
Tschumper said chambers
are too broad to do what the
DLBA does.
"The chamber is great
and it certainly has its role
in how it can benefit busi-
nesses, but its mission is dif-
ferent," Tschumper said.
While business owners
seem to be happy with the
DLBA, not all participate,
Tschumper said.
"Some owners say they
like how we're handling
things and that they chose
not to be involved," she said.
"That's fine, but we'd always
ask for the participation."
Kemmer said it's hard
not to participate.
"I've never been a part of
a group like this," Kemmer
said. 'The group is always
looking always trying to
help. It makes you want to
be more involved."
Derrick Williams is at
derrick.williams@ecm-inc.com.
DERRICK WILLIAMS
KARA HILDRETH
ERIN JOHNSON
Lakeville unlocks key to cooperation 2A
Housing development turns to garden 7A
Health club promotes micro businesses 9A
AUGUST 13, 2 9j
dakotacou ntytribunebiz
B U S I N E S S
Central Village delays, recession
1 R.EA5miC'
hit local businesses
Si 1l �Jti 111 I) n
Some say Apple Valley's `heart of the city'
has stalled, others see potential
by Jessica Harper
DAKOTA COUNTY TRIBUNE
Many people had high hopes
for Apple Valley's Central Village
when the project first began seven
years ago.
However, what was envisioned
as a thriving retail and residential
district on Galaxie Avenue and
153rd Street is now considered a
difficult place for businesses to sur-
vive.
Eleven businesses have closed
in the two -block area over the last
three years, and several local en-
trepreneurs say the recession and
planning pitfalls are to blame.
The area has not developed in
a way that's particularly conducive
to our business," Enjoy restaurant
owner Dan Shimek said.
The Apple Valley City Council
approved a master plan in 2002 to
create a walkable downtown retail
and residential area called Central
Village.
The plans consisted of two ma-
jor projects, Founders Circle on the
west side of Galaxie Avenue and
Legacy on the east side. Galaxie Avenue and
enue
Legacy North, South
The Hartford Group planned to
create Legacy which is divided. by
153rd Street.
Plans for Legacy South were
approved by the City Council in
2002 and included 91,000 square
feet of commercial space and 521
residential units.
The intended residential por-
tion of the project was comprised
of 105 townhomes, 280 apartment
units and 136 senior apartment
units.
Legacy North was approved two
years later.
Plans included 506 residential
units and 222,000 square feet of
commercial space. The residential
portion was going to be comprised
of townhomes, senior housing and
apartments.
Founders Circle
In 2006, the City. Council ap-
pr: »rd Pedersen Ventures' plan to
crests Founders Circle between
e.
Just complete this form and mail it to:
Attention: Subscriptions
Dakota County Tribune
12190 County Road 11
13urnsville, MN 55337
or fax to: 952- 846 -2010
Initial plans consisted of
195,000 square feet of commercial
space and 517 upscale condomini-
ums.
The commercial plans consisted
of seven buildings, including a re-
tail complex called the Village and
the Grand Stay Hotel.
In 2008, the project was scaled
back to 449 condos and 171,000
square feet of commercial space.
That same year, the Hartford
Group changed its Legacy North
plans to add a four -story memory
care facility.
The developer also hopes to
increase the number of residential
units to 598, and scale back the
square footage of commercial space
to 73,400, Apple Valley Assistant
City Planner Kathy Bodmer said.
"They had to modify plans over
time to deal with market condi-
tions and reality, she said.
The squ are-footage chanees l %aye
not yet been reviewed by the City
See Reces~:n,,,, Pair 40A
W E E P C L Y
Lai rite
LARRY
WERNER
Promotional
campaigns should
n
avoid reactive
marketing that
orts more than
businers
STACEY spend.
ACKERIU 5A
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Q aeer �r
952-47
Garrett Av-
EEZE=1 To
losv-t FOR SALE
What was i, nded to he a mixed
use build. L. an the corner of
Galante Lane and 153rd Street in
Apple Valley's Central Village re-
mains an empty lot.
FUSINES'S NAME
SIG
AEA E E
cirrsArtSJF
EMAIL
P o Ey fwica Harps
Local business owners had hoped
Founders Circle would be com-
pleted in five to 10 years. However,
the would -be shops and condos are
nothing more than emptylots.
Frontier
Communications
et).` clan to expand
could mean more
'obrforits
Burnsville
operations.
CARIE
STATZ
34493
r_NnON
00023
4A
Proper
bookkeeping
procedures can help
a business remain
focused an goals
and flan for the
future.
5A
can help a business
saccesrfully deliver
a message to
current and
prospective
customers.
6A
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Dakota County CDA
Annual Disclosure of Tax Increment Districts for Year Ending December 31, 2008
195Raae4
ProPet y ma
Principal and
interest
Month and
Imposed on
other
properties as a
payments doe
year of fires tax
ChM of
rendt of Renal
Current mites
Original net
Captured net
dorhrg the
Tax Increment
Tae Increment
lnaemerd
required
rexNri6s
District Name
capacity
tax Cep0CRT
taxwady
C urretl1 year
received
expended
receipt
deae if tlon
contribution
TIF 1 West 51. Paul
5191,783
13.586
0194,197
50
5192,927
5306577
6/1985
12/312010
50
TIF2
51,787.178
577.504
51.109,074
SO
51521.283
52.976.812
7/1645
12/312010
$0
TIF 3 Apple valley
Villa
1175.000
5179
5174521
0100,000
5102.164
6880,057
711967
12212312
80
019 4 West 5t. Paul
5108.750
8106,060
5302750
60
5290042
8440,109
711987
121312012
550.9
nF 5 cmege
Housing
555790
51,406
$57,285
SO
956,799
5104.743
7/1913
121312314
50
71F 9464re64 Pont
5056,213
38.341
5187,372
50
5202.328
0168,187
61995
1213112023
60
TIF 9 Lakeville Court
962,694
52,976
579,924
50
570,7 89
55.878
7/1997
12/31/2022
SO
TIF 10 gal
S Fp
5247,098
91
563,8
5183,162
$126,569
5173,439
8133,764
7/1997
121312022
530,669
TIF 11 Pennock
(Timbers. &agate.,
1.0495/1
0702,101
518.308
5661 792
5204.660
5589,677
5279.402
72004
12131/2029
50
TIF 12 010055
Ponds Prof
897,500
5028
896572
556,393
567,183
582,154
12003
12131/2028
SO
TIF 13 Cedar Villas
5157,500
514,299
5143201
602,000
9113,777
065.606
72008
9211/2031
SO
'The fiscal disparity property tax law provides that the growth in commercial industrial properly tax values is shared throughout the area. Ina tax increment financing
district, this value sharing can either result in a tax increase for other properties 4 the municipality or result in a decrease in tax increment financing district revenue
depending on how the tax increment financing district is established.
"The districts noted by above do not share growth in commercial industrial property tax values. This results in an increase in property taxes for other properties
located in that municipality. For taxes payable in 2008, this increase in taxes on other properties amounted to the values listed above.
Additional information regarding each district may be obtained from: Andrea Brennan, Assistant Director of Housing Finance Development
1228 Town Centre Drive
Eagan, MN 55123
1959904 (651) 675-4478 8 92)8
40A August 13, 2009 DAKOTA COUNTY TRIBUNE BUSINESS WEEKLY
Recession from Page lA
Council.
Representatives from the
Hartford Group and Ped-
ersen Ventures declined to
comment for this story.
Waiting game
Today the Legacy South
project is well on its way
to completion, but Legacy
North and Founders Circle
are at a stand -still.
In the Legacy South de-
velopment, the Hartford
Group completed 75,000
square feet of commercial
space, 105 townhomes and
36 apartments.
The developer plans to
begin work this fall on a 136
unit senior housing complex
called Regent Senior Living.
Although much of the
Legacy South project is con-
structed, it had its share of
problems along the way.
Plans for a 244 -unit apart-
ment building and a 14,000
square -foot child care center
never came to fruition.
Legacy North has made
even less progress and is
nothing more than empty
lots.
Founders Circle is also
largely unfinished except for
the Grand Stay Hotel.
However, all three devel-
opments are still a "viable
plan," Apple Valley Assis-
tant City Planner Margaret
Dykes said.
"It was a 10 -year plan,"
Dykes said. 'There was
a thought that all of this
would happen in five years,
and that's a lot to take on in
the best of environments."
Hard times
Local business owners say
more should have been com-
pleted by now.
"I expected that it would
be a large development of
single- family and multi-
family homes with an active
shopping mall," Shimek said.
"That didn't materialize."
With much of the project
on hold, the area has become
isolated, he said.
Although Enjoy has man-
aged to continue operating,
the business is "barely hang-
ing on, he said.
Enjoy has been profitable
in the past, but not consis-
tently, Shimek said.
"We are definitely not
where we need to be in that
regard," he said. "At the cur
rent level of business, it's not
profitable."
Business became especial-
ly slow when 153rd Street
and a temporary Founders
Lane were under construc-
tion in 2004 and 2005.
Although the road proj-
ects are completed, things
are no better, Shimek said.
"It's a very poor set up,"
he said.
Shimek admits the proj-
ect is not the only reason his
business has fallen on hard
times, and that the recession
is another contributing fac-
tor.
Shimek said he was able
to beat the tide by investing
his own money into the res-
taurant, altering his business
model and simply waiting
out the storm.
"However, this is not a
sustainable model," he said.
"For long -term sustainabil-
ity, some things need to hap-
pen with the development."
The area needs to be bet-
ter advertised for businesses
to succeed in Central Village
while construction is stalled,
he said.
"I think in the meantime,
the city and business partners
need to work closely together
to create more awareness for
what's there and how to get
there," he said.
Despite the harsh blow,
Shimek remains optimistic
about the future of Central
Village.
"I think there's potential,"
he said. "I think the mayor
and the city had a vision as
to how it was going to de-
velop. Obviously the timing
isn't good for that to be tak-
ing place, but I think it can."
Enjoy is one of the few
original businesses to survive
in Central Village.
Former Dunn Bros Cof-
fee Shop franchisee owner
Sheryl Petersburg is one en-
trepreneur who had to close
in April after seven years in
business.
Petersburg primar-
ily blames the development
The Grand Stay Hotel is the only piece of the Founders Circle development to be cono-
pleted. Plans also included a retail building called The Village and 517 condominiums.
Fhores by Imelra Harper
The Shops on Galaxie is part of the Hartford Group's Leg-
acy South project in Apple Valley's Central Village. While
the surrounding Founders Circle and Legacy projects
stalled, several businesses closed in the complex. Today,
several spaces in the building remain vacant.
delays and the 153rd Street
project for her business fail-
ing.
"I lost a third of my busi-
ness from the construction
of the one -way," she said.
Dunn Bross annual rev-
enue dropped by about 30
percent between 2004 and
2009, she said.
Once the road work was
finished, drivers were con-
fused by the configuration,
Petersburg said.
"People avoided coming
here because it was such a
mess," she said.
Petersburg said she
thought of selling, but said
she decided to close instead
when she saw her 2008 first-
quarter figures.
"It's a lemon," she said.
"The landlord said it would
be the heart of the city and
that Galaxie and 153rd
Street would be the focus,
but that hasn't happened."
Petersburg said she
thinks Dunn Bros would
have remained open had the
developments made more
progress.
Petersburg said she is un-
sure whether Central Village
will ever be fully developed.
"It seems completely
stalled, but it depends upon
how they handle it from
now on," she said.
In process'
Apple Valley Mayor
Mary Hamann Roland said
she disagrees with the notion
that Legacy and Founders
Circle are permanently on
hold.
"It's in process," she said.
"We all hope that it will
happen over night, but in
the end I think it is some-
thing we have to be patient
with."
She said the recession,
not the delays within Cen-
tral Village, is responsible
for businesses' plight.
If Apple Valley residents
make a commitment to buy
locally, businesses within
Central Village will begin
to thrive, Hamann- Roland
said.
"When we put our minds
to something and work
together, we can create posi-
tive results," she said.
She said more customers
will come to the area now
that the road construction is
completed.
Hamann -Roland said she
also disagrees with the no-
tion that Central Village is
isolated, and pointed to the
fact that the area is within a
fourth of a mile from several
major roads such as County
Road 42.
Hamann Roland said
she does not regret approv-
ing the project.
"In the end, I think it was
the right thing to do to build
a walkable downtown," she
said.
Meeting the goal
In general, downtown de-
velopment projects like Cen-
tral Village can be success-
ful, but making this happen
in a recession is challenging,
said Caren Dewar, executive
director of the Urban Land
Institute.
"With the market on
hold, the financing is not
available," she said.
However, with the right
planning and implementa-
tion, a downtown develop-
ment can still be done. The
key to any project is design,
Dewar said.
Communities that are
walkable and feature mul-
tiple options are most suc-
cessful, she said.
Ideally, residential and
retail buildings should be
completed at the same time
to present a "complete pack-
age," Dewar said.
Nearby Burnsville was
able to achieve this goal in
its Heart of the City, which
has retail and residential as
well as a performing arts
center.
Other communities such
as Rosemount and Lakeville
took a slightly different ap-
proach by redeveloping an
existing shopping and resi-
dential area.
If either residential or
commercial must come be-
fore the other, residential
should be first, Dewar said.
"If you put retail in an
area where there's not much
residential, then the retail
will not stay there, she said.
"They need to see it. You
can't just say there will be
lots of people."
This is where local busi-
ness owners feel Apple Val-
ley's Central Village came
up short,
Signs of hope
Despite the setbacks,
there is a glimmer of hope
for Central Village.
Several businesses such as
Kami Japanese Steakhouse,
Thrivent Financial and oth-
ers have managed to stay
open in Shops on Galaxie.
At the same time, several
old and new businesses re-
cently opened.
Fortner Dunn Bros cus-
tomer Lisa Anderson re-
opened the coffee shop at
15265 Galaxie Ave. last July.
Anderson said she's
confident the shop will be
successful the second time
around.
"Business is better than I
predicted and is picking up
every day," she said.
Dunn Bros is not the only
business to open in Central
Village this year.
Mainstreet Boutique
opened in Shops on Galaxie
and Ramv's Mediterranean
Cuisine Pizzeria opened in
the former Two Guys from
Italy space.
Ramy's Mediterranean
Cuisine Pizzeria owner
Rachie Ramy said his busi-
ness is already profitable and
growing daily.
Rainy said he doesn't
worry that the project delays
in Central Village will nega-
tively affect his business.
He said he thinks by fill-
ing a niche, Ramy's can help
the area become successful.
"I think we brought light
to this circle of death," he
said.
Jessica Harper is at
jessica.barper@ecm-inc.com.