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HomeMy WebLinkAbout11-24-09City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, November 24, 2009, p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1 Call meeting to order 2. Approve September 29, 2009 meeting minutes 3. Discussion of City's Policy on Economic Development Incentives 4. Review of 2010 Community Development Block Grant (CDBG) application 5. Presentation of Next Generation Broadband for Dakota County Video 6. Discussion and Recap of 2009 Manufacturers Exchange Event 7. Business Retention Visit Summary 8. Director's Report 9. Adjourn Attachments: October 2009 Building Permit Report CDA Foreclosure Update, October, 2009 Dakota County: ICF Smart2l Community of 2010, Dakota County Tribune Business Weekly, November 5, 2009 Members Present: Comms. Matasosky, Tushie, Vlasak, Starfield, Schubert, Emond, Brantly, Longie, Smith, Ex- officio member Mayor Holly Dahl, Ex- officio member City Administrator Steve Mielke, Ex- officio member Chambers "Commerce Executive Director Todd Bornhauser. Members Absent: Erickson. Others Present: David Olson, Community Kienberger, Economic Development Speci Kuennen, Associate Planner. 1. Call Meeting to Order 2. Approve June 30, fi,9, in Mi Motion 09.09 am buildin held at C`r City of Lakeville Economic Development Commission Meeting Minutes September 29, 2009 Marion Conference Room, City Hall omic Develop aryl Morey, Planni rums. Ti ugust 25 na nimo tem No. Director; Adam irector; Allyn Chair Matasosky called the me der at 5: .m. in the Marion Conference Room of City Hall, 20195 Holyoke ve 1 akeville l rnesota. ie /Emory moved to approve the minutes of the 2009 m "ng as presented. Motion carried 3. Conti Propose mg Amendments on Exterior Materials Reements fir, Commercial and Industrial Buildings Kuennen reviewed th=' ptember 25 EDC memo regarding the proposed ents on exte materials requirements for commercial and industrial He noted t there were 26 attendees at the September 15 open house all to solicit feedback from the business community. Daryl Morey sti the timeline for the remainder of the Zoning Ordinance amendment process and stated that it should be completed sometime during the spring or summer of 2010. Comm. Tushie asked what the general response has been from the meetings regarding the proposed amendments to the exterior materials requirements for commercial and industrial buildings. Economic Development Commission Meeting Minutes September 29, 2009 Mr. Morey responded that there are some business people who would like to see no changes to the zoning ordinance occur due to the state of the economy. Others are supportive of the proposed changes to the commercial /retail districts and split on the industrial districts. Steve Mielke added there are two businesses in the industrial park that support the proposed changes, but that there really isn't a whole lot of middle ground concerning industrial buildings. Comm. Smith asked how many recently constructed projects fall grossly outside of the standards of the proposed zoning ordinance requi nts. David Olson responded that between three a proposed standards. e projects .would not meet the Comm. Smith asked if staff works with the developers_ to encourage high quality building. Mr. Olson responded that First, Industrial, fo ple, did a high quality building project without influence from st aiaring the planning process. Comm. Emond added that Clove on their building through a condition Chao sid sa`Yof the bu rements. rage waµble to utilize metal panels Mr. Mielke state' as at there has b a lot of discussion about metal as an acceptable bull i material in he indu` ial park. There has been a strong reaction to this discussio and while %tae City probably shouldn't allow an all -metal building, there is room for he proposed exterior finish requirements apply to all four the First Industrial building would meet the proposed Mr. Ott responded saying that if you consider option 4c (allow two distinct textures architect y precast concrete panels to count toward meeting the exterior building fine requirement), the First Industrial building would probably meet the proposed, ent. Comm. Tushie noted that in St. Louis Park they have a requirement for retail buildings to break up long expanses of a wall with columns to make the long flat surface feel like several shorter surfaces. Some sort of horizontal striping technique might actually make a building look worse. The key is to incorporate a different type of material; brick, block, stucco, etc. Comm. Starfield asked that if the ordinance doesn't change, what leverage does staff have to encourage a higher quality building. 2 Economic Development Commission Meeting Minutes September 29, 2009 Mr. Mielke responded that it would be through negotiation, but staff is ultimately bound by the ordinance. There is currently little leverage. Comm. Starfield asked if the City would rather try to negotiate with a business for a higher standard, or not even have a chance to negotiate if the business doesn't even consider Lakeville. If the ordinance were to remain the same for now, when would /could it be reconsidered? Mr. Morey responded that it could be reconsidered at any time based on City Council direction. With the zoning ordinance update in 2000, the City revisited the changes that were adopted for townhome standards aft wo years. He also noted that the next planned zoning ordinance update is in Mr. Morey also noted that the Cub Foodsaect in Heritage Commons was a negotiation, but because the property o er has standardS'i that specific development, Super Valu constructed a quality building. It is like that without those standards, the building wouldn't have been built that quality lev+ Comm. Starfield stated that a lot of people s want the standards to stay as they are Could tabling this/ t a send a positive message to the business community? Motion 09.10 Comm Smith/Starfield mote recommend to the City Council thcurrent extern b4 ing fi tsF standards remain unchanged ercial s industrial zoning districts. Motion was Mr. Mielke asked Co co mUnity's posi qtf ty buildings th Comme*antly asked situation the future. e motion prior to a vote. hanging the zoning ordinance at this time will not help the deserves credit for negotiating to get the number of ly in Lakeville. the motion could be amended to address a review of this Comm. Tushie a that there is a fine line in how business development is encouraged. L Mille is already expensive. Having the standards outlined in the existing corridor and gateway design study makes us unique. Being different and unique brings business and residents to Lakeville. Comm. Tushie added that the proposed standards are very similar to other cities in the area and are not all that onerous. Maybe a compromise of allowing for up to 50% of an industrial building to be metal could be agreed upon? 3 Economic Development Commission Meeting Minutes September 29, 2009 Comm. Tushie further added that this is a long -term decision; the economy is going to get better. While the timing of change is never good, putting off this type of decision makes the process more cumbersome to readdress in the future since the zoning ordinance update is currently underway. Comm. Longie stated that maybe some of the disagreement is occurring because we are trying to lump the commercial and industrial standards together in this discussion. Retail tends to be more about image and customer traffic, while industrial development doesn't seem to benefit from increasing the building quality standards. Comm. Emond added that a lot of businesses e tread upset about the tax increases affecting the cost of doing business This is primarily being heard in the industrial park and not as much from the ial/retail sect Chair Matasosky noted that increasing only put us further down the list when a p least need the chance to have a prospect the benefits of doing a higher qulity buildin Chair Mataso be able to comp Co situati industri g. Chair Matasosky discussed the exa Lakeville. He stated that he convinced t of a metal building, and. that they were actua than what a metal bull ing would have standards in the industrial park would ect is looking for a new location. We at e to eville and discuss with them Af when Tushie res area Comm. th allows .r industrial nark. a. Cascade originally came to eviatefrm their corporate standard to Wild a nicer building for less dded that selectors search criteria is restrictive. with Fartalt and Onna. We need to that he °think of any industrial park in the Metro uildings. Even Cannon Falls requires concrete in their at Lakeville is in the Metro area and we have a different e can't compete with every rural community just starting an d. Chair Matasresponded that we have sold Lakeville's industrial park based on the critical mass' business that is here. Comm. Tushie asked if metal buildings are currently allowed in the existing zoning ordinance. Mr. Morey referred to the first page of the EDC memo and discussed the existing standard with the EDC. Comm. Emond mentioned the long -term maintenance and issues with metal buildings. Economic Development Commission Meeting Minutes September 29, 2009 Mr. Morey noted that when the townhome standards were adopted in 2000, this was due to concern over their long -term viability, since townhomes were a relatively new housing product in Lakeville. The City has evolved and now has a healthy commercial /industrial base. Now is a good time to evaluate the City's commercial and industrial standards before the City is more fully developed. Comm. Brantly asked the EDC if there is any middle ground on this issue or at least on an interim basis, make a statement to the quality that we would like to see without killing business. Mr. Mielke responded that commercial development is' the community, and we have received much mo developers on this issue. If there is some sort ,of middle much a statement about from the commercial glad, it would seem to make sense to set the industrial standards discussion aside now and proceed with the commercial standards recommend. Mr. Mielke added that he is concerned "do something" to the business community. rather put the industrial park discussion on ho the feeling that the City is again iness. Comm. Emond agreed that thi businesses and others that are con Mr. Mielke stat at especially when it comes to commercial development, Lakeville's co Lion is very uch the Metro area. Comm. Tushie asked Corporate Campus Mr. M the Plan Mr. Mielke a industrial stand erce .ring the perception that the C y4 trying to sued by stating that he would do something that would further is damaging for both the existing to Lakeville. Business Campus, which is zoned s in the promised zoning ordinance amendment. orey responded th CC has its own, higher standards, and that it does not nder the industrial z zoning requirements. explained that the EDC's recommendation will be forwarded along with Commission's recommendation to the City Council t he is comfortable with holding off on any changes to the but the commercial standards are a different issue. Commercial development is more about community image and will attract or detract from business coming to the community. Comm. Smith asked what commercial buildings have been built in Lakeville in the past five years that do not live up to the proposed requirements. Mr. Olson noted that the Ace Hardware store on Juniper is one example. 5 Economic Development Commission Meeting Minutes September 29, 2009 Mr. Mielke added that the CVS on Cedar and Dodd is another building that staff has received criticism on. He added that the City has for the most part been getting commercial building construction consistent with the proposed ordinance changes. Mr. Olson added that the difference with the Ace Hardware store in Downtown Lakeville is that they were held to the adopted Downtown design standards. Without those, they would have likely constructed a building similar to the one on Juniper. Comm. Smith withdrew his previous motion. 4. Update on Minnesota Investme Mr. Olson review addressed sever Mr. Olson clar stated that they added thetAthe that eve guarantees uriti tha °'most insta Mr. Mielke added that there really isn't much leverage the City has right now. Motion 09.10 Comms. Smith /Starfield move s. to recommen to the City Council that they adopt the proposed exterior building standards for the commercial zoning districts but the current exterior building finish standards remain unch,d for the industrial zoning districts at this time Motion carried on an 8-® fl aVote. Comm Tushie was opposed. Mr. Mielke thanked the EDC foKi iscussion an onsideration of this issue. r llication R Genesis Poly Recycling arding Genesis Poly Recycling and ed by the EDC at their August meeting. vent of default on a loan by a business, DEED has n order to recover the loan funds. He efault, t 'would try to recover the funds through the hat would be a part of a loan agreement. He also noted y would likely be subordinated to the primary lender. Mr. on continued stating. -hat the MIF program is one of the few financial tools the Grf aas to offer b nesses in conjunction with the State of Minnesota. Genesis is currently An the queue or funding and DEED has stated that it meets the program requirements; The pram is set up as a "last to commit" gap financing tool with a negotiable rate d term. He concluded by stating that the City Council has indicated that staff should move forward on applying for the loan funding. Chair Matasosky asked if the MIF loan would be contingent on other sources being secured first. Mr. Olson responded that that is one of the requirements of the program. Mayor Dahl concluded the discussion by stating that she appreciates the EDC's questions and discussion regarding this project. 6 Economic Development Commission Meeting Minutes September 29, 2009 5. Director's Report Mr. Olson reviewed the Director's Report and provided an update on building permit activity through the end of August. Comm. Emond asked who the most active residential building in the City is at this time. Mr. Olson responded that the top three builders are probably Ryland Homes, Country Joe, and D.R. Horton. Chair Matasosky asked if any of the builder speculatively. Mr. Olson stated that most homes being built now already have a added that the City is currently studying request to allow for sma lots as a reaction to the change in the hous ing market Comm. Longie asked if there was an update intersection at Hamburg and Lae Boulevard. Mr. Olson handed out the latest fr, ffic s that area that showed that traffic in that area was not high enough to m warraa atrafi signal doesn't d unwarranted traffic signals because of Mr. Mielke added liability concern 6. Adjourn The inc, adjourned at 6:40 p.m. Respectfully submi Attested to: building any homes per lined up. He ingle family e potential to signalize the Adam Kienbergi R. T. Brantly, Secretary Economic Development Specialist Memorandum City of Lakeville Community and Economic Development To: Economic Development Commission From: David L. Olson, Community Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: November 19, 2009 Subject: Discussion of City's Policy on Economic Development Incentives item No. 3 City staff has been receiving more inquiries regarding possible financial assistance from businesses considering locating or expanding in Lakeville. The only recent project for which the City was able to provide financial assistance was the ImageTrend project. This was primarily due to the fact that City owned the land on which ImageTrend is proposing to expand. The other potential project that was being considered for financial assistance was the Genesis Poly Recycling project for which the City was prepared to apply for loan funds from the State Department of Employment and Economic Development (DEED). These projects as well as other inquiries have prompted staff to request that the EDC and ultimately the City Council review our current policy and practice regarding providing incentives or subsidies to new or expanding businesses. In many cases, businesses do not know what to specifically ask for in terms of possible incentives or subsidies. In some instances, City staff is able to indicate that while the City of Lakeville does not have the ability or policy of offering financial incentives, we are able to offer a "streamlined" approval process (i.e. combined preliminary and final plat approvals) which in most cases should result in a faster and less costly project approval process. Lakeville's development review process also includes the ability to provide administrative or staff level approvals of site plans that do not involve a new subdivision plat. Other non monetary types of incentives or benefits that can be presented to industrial type businesses considering Lakeville is the critical mass of existing businesses and how this is potentially beneficial to a new business coming to the community. This also can translate into improved marketability of the property should the business owner(s) wish to sell their properly in the future. The City may want to also have a discussion on the more conventional financial incentives such as tax increment financing and tax abatement. It has been 10 -15 years since the City has utilized tax increment financing to assist a project in the industrial park. When it was used in the past, it was typically used for public infrastructure improvements adjacent to the site. Companies that received tax increment financing in the past included: Despatch Industries, Toro, Imperial Plastics, Century Refining, Alcorn Beverage and DHY as well as the original businesses that located in the Fairfield Business Campus. The only recent (in the past 8 years) projects that the City has been able to provide a financial assistance have been projects that have developed property that was previously owned by the City. These include Advanced Wireless Communications, LifeTime Fitness, and as previously mentioned, ImageTrend. While many Greater MN cities continue to make tax increment financing assistance available for industrial developments, most cities in the Metro Area do not offer direct financial assistance for industrial development projects. Staff encourages EDC members to ask questions and offer comments during the discussion of the issue. A suggestion that has been made by an EDC member is that staff develop a decision matrix that list all of the pros and cons of the various items that the City has available to offer businesses. It was also suggested that we develop this information so that it can be provided directly to the business owner(s) and that same information is conveyed for all inquiries. Memorandum i tem No. City of Lakeville Community and Economic Development To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steve Mielke, City Administrator David L. Olson, Community and Economic Development Director Date: November 19, 2009 Subject: 2010 Community Development Block Grant (CDBG) Application The City is required to submit its 2010 Community Development Block Grant (CDBG) application to the Dakota County CDA by December 31, 2009. It is anticipated that the City will receive $137,413 in 2010 which is an increase over what was received in 2009 due to a proposed increase at the federal level. The CDA is continuing its requirement that 50% of a City's activities to be funded with CDBG funds involve activities that benefit Low Moderate Income (LMI) households. One of the more commonly identified LMI activities in other cities in Dakota County is the Home Rehabilitation Loan program (residential rehab) administered by the Dakota County CDA. Preservation of the existing residential neighborhoods adjacent to the Downtown has been identified as a goal of the City Council approved Downtown Development Guide. Due to the increase in home foreclosures and economic hardships, this program will likely remain active and will potentially see an increase in demand. Over the past four years, Lakeville has done 26 residential rehab loans. Through the end of October, there is approximately a $66,000 balance available in the current program budget. Staff would recommend a funding level increase for this program of $10,000 for 2010. In addition to the 2010 allocation, staff is recommending that the remaining $13,438 from the 2006 "Downtown Acquisition /Clearance" category be reallocated to the Residential Rehab activity. The other activity funded with the City's 2010 allocation is the Downtown Code Improvement Program. This activity currently has a balance of $166,000 from funding in previous years. It is recommended that additional funding in the amount of $67,413 be provided in 2009. This will provide sufficient funding to complete at least three Downtown Code Improvement grants in 2010 and 2011. Senior Center building improvements The senior center is due to have its roof replaced in 2010. As a predefined LMI group by HUD, this project would help the City meet its requirement of benefiting LMI households. Staff is recommending allocating $60,000 for this program activity in 2010. 2010 Funding Recommendations Staff recommends the following activities to be funded with the City's 2010 CDBG allocation. Request Action Downtown Code Improvement Program $67,413 Senior Center Roof Replacement $60,000 Home Rehab Loan Program $10,000 Reallocation of remaining 2006 "Downtown Acquisition /Clearance" to Home Rehab Loan Program $13,438 Staff requests the EDC discuss these recommendations and forward its recommendation to the City Council. Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist it Copy: Steven Mielke, City Administrator David L. Olson, Community Economic Development Director Date: November 19, 2009 Subject: Presentation of Next- Generation Broadband for Dakota County Video City of Lakeville Community and Economic Development As a part of the 2008 -2010 Strategic Plan for Economic Development one of the goals under the strategic work area Technology includes Advocate for Lakeville to become a leader in telecommunications services and create partnerships As a result, Lakeville has been an active participant in the Dakota County Broadband Committee. This is a group consisting of representatives from all of the cities in Dakota County to discuss broadband issues and what can be done at both a local and regional level. The mission, goals and objectives of the group closely align with the work that Lakeville has done in the past and continues to focus on: Mission: To position Dakota County as the place of choice for broadband technology. Goals: Provide broadband technology that addresses the following needs and expectations— Speed (symmetry in upload and download time) Reasonable cost Reliability (multiple paths) Access (multiple providers) Objectives: If the County can provide broadband technology to meet the identified goals, then the following objectives could be achieved: Enhance economic development opportunities Grow more home -based businesses Maintain increases in residential home values On November 9 the group released an educational video through this partnership that outlines the benefits of next- generation broadband including: economic development, job creation, fast uploads and downloads of data, fast downloads of high definition movies and games, ability to utilize emerging applications, platform for distance medicine, platform for distance education, family teleconferencing, and reduced energy consumption. Mike McBrady, owner and CEO of Image Trend in Lakeville, participated in the process by agreeing to an on- camera interview for the video. The other participants /interviews represent several different groups of people throughout Dakota County. Half of the production costs were paid by the Dakota County CDA as part of their economic development efforts, and the remainder was split among the cities. The purpose of the video is to increase awareness of this issue by promoting a consistent unified message supported by the cities in Dakota County as well as the Dakota County CDA. The video will be shown at the EDC meeting. Memorandum cem No. City of Lakeville Community and Economic Development To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist if Copy: Steven Mielke, City Administrator David L. Olson, Community Economic Development Director Date: November 19, 2009 Subject: Discussion and Recap of 2009 Manufacturers Exchange Event The State of Minnesota declared October 26 -30, 2009 as Minnesota Manufacturing Week. This year the City of Lakeville hosted an after -hours Manufacturers Exchange event on Tuesday, October 27 at the Holiday Inn Suites. As in the past, the event was funded by Dakota Electric's Partners in Progress grant to Lakeville for economic development activities. The event was designed to allow business owners in the industrial parks to network with other industrial businesses. More than 70 people attended. While we heard a lot of positive feedback from the attendees at the event, we placed follow up calls to the attendees to further solicit feedback on the event and suggestions for next year. Below are a summary of the comments received during these phone calls: Everybody I spoke to enjoyed the event and thought it was a worthwhile experience Several people noted that they preferred this event format over the luncheon that has been done in past Several noted that it would have been nice to get a few more manufacturers from the industrial park at the event Other comments: o Would've liked to network more, but was stuck at their table o Maybe have a brief keynote speaker? o Same style but over the lunch hour? o Get more information in advance out to the businesses about the value of the event o Lengthen time of event o Keep it informal, this worked well These comments and ideas will be used to help plan the event next year during Minnesota Manufacturing Week in October, 2010. Staff would also be interested in any comments or suggestions from EDC members who either attended the event or talked to someone who did. Memorandum City of Lakeville Community and Economic Development To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist At Copy: Steven Mielke, City Administrator David L. Olson, Community Economic Development Director Date: November 19, 2009 Subject: Business Retention Visits Summary As a part of the 2008 -2010 Strategic Plan for Economic Development one of the goals under the strategic work area Partnerships includes Explore 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. Hearth Home Technology Visit 1.0111 Igo. On November 4, 2009, EDC member Glenn Starfield and I met with Brad Determan, President of Hearth Home, and Mike Meyer, Member Community Relations Manager. Hearth Home Technologies is the world's leading producer and installer of hearth products. A subsidiary of HNI, Lakeville is the headquarters for Hearth Home with the main production facility located in Lake City. Principal markets for Hearth Home are regional as well as some international business. Hearth Home indicated that they have seen a decline in sales in conjunction with the slumping housing market and has shifted their business model to a more even balance of retrofit sales versus new construction. Having recently relocated their Lakeville operations to a smaller building located on the corner of Cedar Avenue and County Road 70, they indicated that this building will be adequate for their future operations. With their engineering group and research and development staff shifted to the Lake City facility, they now employ 80 people in Lakeville and serve as home base for roughly 70 traveling sales staff. Hearth Home sees a fairly stable future for their business as they are very strong in the industry and have a good employee retention rate. A couple of key points Hearth Home made while discussing things that the City can do to help improve the business community included: State of Minnesota economic development efforts could be stronger o During a recent business transition in Iowa, Iowa came out much stronger and was very quick to help them maintain a presence there versus moving a location entirely to MN o MN tends to have slow and complex processes The County Road 70 interchange is a big plus for the local business community No follow -up on any specific issue was requested by Hearth Home at this time. 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: November 19, 2009 Subject: November Director's Report The following is the Director's Report for November of 2009. Development Update Item No. City of Lakeville Community and Economic Development The new Ace Hardware Store currently is nearing completion in Downtown Lakeville. This new 16,000 square foot store is located across Holyoke Avenue from the existing Ace Hardware store. Construction is expected to be completed in December. The new Green Planet Car Wash located at Dodd Blvd. and Heritage Drive is also nearing completion. This new automatic environmentally friendly car wash with multiple detail bays is also scheduled to be completed in December. Crossroads Commons is an 87 -unit senior housing project that has recently been completed by the Dakota County CDA and is located near Cedar Avenue and Dodd Boulevard behind the Crossroads Shopping Center. A dedication event is scheduled for December 2nd. Representatives of Genesis Poly Recycling notified the City several weeks ago that they were no longer pursuing options to start their operations at either of the existing buildings that they were looking at in Lakeville. The company indicated that they had decided to pursue an existing building in the City of Mankato (owned by the City) as the location for their start-up business. Dakota County Intelligent Community Initiative Attached is an article written by Sharon LaComb, Vice President of Dakota County Technical College (DCTC) regarding an event that was held on October 9 involving the Intelligent Community Initiative. The article provides a good summary as to the status of this initiative and what activities are being pursed to achieve this designation. Adam as well as Mayor Dahl represented the City at this event. Transportation Projects Update A roundabout was completed and opened to traffic on November 13 at Kenrick Avenue and 175 Court. This intersection improvement was completed by the Metropolitan Council to improve the increased traffic levels on this street that are anticipated as a result of the new Kenrick Avenue Park and Ride. Construction was recently substantially completed on the Lakeville Cedar Avenue Park and Ride facility which is a 190 space surface parking lot along Cedar Avenue at 181 Street, which is approximately 1 /4 mile south of the Cub Foods. Bus service began being provided at this new facility on November 16 There will be five express trips to Downtown Minneapolis with a stop at the Apple Valley Transit Station in both the a.m. and p.m. from this facility. The reconstruction of Holyoke /Highview Avenue between Heritage Drive and Dodd Boulevard was recently completed. This project, which is being funded with $853,000 of federal American Reinvestment and Recovery Act funds, involves the removal of all of the existing pavement and replacement with new pavement. Local contactor McNamara Contracting Inc. was the contractor for the project. Building Permit Report The City issued building permits through October with a total valuation of $60,977,727. This compares to a total of $116,786,145 for the same period in 2008. Included in this valuation were commercial and industrial permits through October with a total valuation of $7,051,500. This compares to a total commercial industrial valuation of $31,263,900 for the same period in 2008. The City issued permits for 13 single family homes in October with a total valuation of $3,759,000. This compares to 19 single family home permits in October of 2008 with a total valuation of $5,036,000. The City has issued a total of 104 new single family home permits through October compared to 128 during the same period in 2008. The City issued 4 permits for townhome and condo units in October of 2009 and compared to 14 townhome and condo permits in October of 2008. Foreclosure Update Attached is the monthly update on foreclosures in Dakota County provided by the Dakota County CDA. There have been 37 Sheriff Sales as a result of foreclosures in Lakeville in October. This was the highest total for any month this year. There have been a total of 210 Sheriff's Sales for the first 10 months of this year. 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LA 0 N N 00 w 0 0 0 0 0 0 0 9 oo O O O LA LA \O LA O CA o CA LA O O O O b O O O O O O O 0 0 0 0 0 0 0 0 0 O bb O O 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 O O O O O 9 O ch J N P w J w O1 O\ CA N 0 00 CA O- A- Ow LA w J LA V1 C/1 O 0 V1 0 O LA IA L O O O O O O O O O O 0 N -P O .O cA W A N V LA w LA O Z.0 0 00 O 0 0 0 0 0 0 0 0 0 0 c 0 0 0 0 0 0 0 0 0 0 0 O O O O W O w 4 LA LA N 00 N W J CO O CO LA W 00 41. 0 W N �'.0 '0 W 00 Q. J CJ1 tW LA J 00 W W C0 �O O OD N 01 O O J LA O A O O w LA LA O ■C0 LA cJ, 0 0 0 0 0 0 0 0 J 0 0 O O O O o O O O O O O 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O C.A 01 .P A W 00 N J ON CO J 0 CA O O N CT N ■D N r-- O� 'O J W 0 0 00 J O Ut O 00 N N CO \C N J CA C A .0 0 0 0 0 0 O O O A P CA 0 0 O O O O coo O O o O O O o O O O O O O O O O O O O O O O O O O O O O O O O O O LA O LA O co 1— N W 01 N C WO O W W 000 W 1.„, N p O p 00 O CA CD .P 01 OA J Vt 0 0 0 0 GP O O N 00 c O O O O O O O O O O O O O O O O O O C O O O 0 O O O VO ON ON 00 W CO Z.0 b Fr N-+ 00 00 00 W VD Jl C O O 01 W N C O O O O O O O O C\ W N 00 N 00 O O O O C Co O O O O O O Co C O N 0 cr O co c C) cS 0 CIl g c 0 a o 0 CD 0 O co N O W O O O O O O O O co co co O 0000 O O O C O O C C O O O C O O O O O O O O CO O O O O O O O C O O O O O O O 0 0 Co O DA Dakota County Community Development Agency To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: November 12, 2009 Re: Foreclosure Update Foreclosure Counseling Information Workshop The CDA is partnering with the Neighborhood Development Alliance (NeDA) to offer a FREE foreclosure counseling and information workshop on Thursday, December 10 from 4 to 7 p.m. NeDA counselors will be available to assist Spanish- speaking homeowners. The workshop will be held at the Wentworth Library located at 199 E. Wentworth Ave. in West St. Paul. Homeowners will be able to ask questions and get advice from trained housing counselors. The event is an open house. No pre- registration is required. The CDA encourages anyone who is concerned with their mortgage to attend the workshop. Waiting may limit a homeowner's options. If someone is unable to attend, please call 651 -675- 4555 to speak with one of the CDA's homeownership specialists. To contact a Spanish speaking counselor, call NeDA at 651- 292 0131. Foreclosures Increase in October There were 214 Sheriff Sales in Dakota County in October the highest number of sales so far in 2009, and the second highest within the past two years. Previously, the month in 2009 that had the highest number of Sheriff Sales was July, when 180 sales were recorded. The last time Sheriff Sale numbers were higher was January 2008 when 228 sales took place. The high number of Dakota County foreclosures in October compares to an average of 156 per month so far in 2009 and to an average of 172 per month in 2008. According to an analysis recently released by Minnesota Housing, the number of Minnesota mortgages going into foreclosure increased by 25 percent during the last year. At the same time, Minnesota's unemployment rate increased from 5.4 percent to 8 percent. The state's unemployment rate is expected to remain high through 201 1, which would likely contribute to mortgage delinquencies and foreclosure rates. So far in 2009, Sheriff Sales generally had been decreasing, due in part to the Making Home Affordable program, which was launched in March of 2009. During the program's implementation, many mortgage companies placed moratoriums on foreclosure proceedings and. Sheriff Sales. DA Dakota County Community Development Agency Dakota County Stats October 2009 of Sheriff Sales in October 214 (compared to 190 in October 2008) Total Sheriff Sales for 2009 1,563 (compared to 1,821 Jan.- October, 2008) of Notices of Pendency Filed in October 371 Total Notices of Pendency Filed for 2009 3,342 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. In The News Provided in this PDF file are a few notable foreclosure articles that were published in the last month. Among the points of interest: The government program, Making Home Affordable, implemented 500,000 trial loan modifications as of October, reaching the goal nearly one month before schedule. However, housing professionals remain skeptical on whether the program will be successful in the long -term. On a national level, the number of households falling into foreclosure rose 5 percent from summer to fall. Unemployment is the main reason why homeowners are falling into trouble. Data released by the Minnesota Home Ownership Center may suggest that the state foreclosure crisis is far from over. Pre- foreclosure notices have been on the rise in the state this year. If you have any other concerns, please call me at (651) 675 -4464 or send me an e- mail at drogness ©dakotacda.state.mn.us. I sooz. £8Z 86Z ILZ LL I Ln 8Z I 98Z t7Z 0 6L1 L LL E90 6002 £61 zsz 0ZZ 8171 901 Z0I 0IZ N £6 Lf) 09 £9S` Daa n,oN OE 8Z £Z £Z CO 00 LE N d' N Ln 'd' PlZ d e s .O ZZ OE N. �o N co N Ln V LS Sny N ZZ ZZ co N Tr ..O M NO 091 I N Z£ £Z CO V S r'f N N 0% N 181 I� SZ N M O 9Z O N N OO 851 N OE 8Z N d N 1 N P91 N £Z N= OD N O co co d- ill 9ZI .ie 178 q N OE 9Z SZ o N O N O c 00 LLI OZ LZ OZ D Apple Valley Burnsville ue8e3 Farmington Hastings Inver Grove Heights Mendota Heights Rosemount Ined '3S 44nos Ined 4saM Small Cities TOTAL ✓1 u C c al Q cro ct N i O Tr O 0 s. Q 0 u u w c 0 w w C d" a V1 E u N Ln O E V O O O al U c s 0 a.. y a+ N 7 C O al C 0 cn E w O E O LL SOURCE: Dakota County Sheriff Sales. City numbers are based on municipality address. October 2009 I 800 1 szt LLV 1701 19£ Z91 1761 8S£ 8E I 9£Z I LEZ Z9I 917 001 600Z SZ1� 8817 1 7 1 7 OZE 661 0ZZ 60S 917 981 L17Z 9Z I ££I Zt+ 3aq AON 330 OS LS OS LE OZ N 9S O% M 9Z OZ IL€ 3daS 09 6E SE 7I- ON 9Z 65 N OD CO en PPE Znv EE 8E 8Z N 0% ES N 00 VZ O N I6Z InE 6E 85 LS SE OZ 6Z 917 N VZ Ln N IS£ un( 91 611 SE £Z O% SS o% OE N SPE ke W EE LE Li' SZ frZ £Z ZS M 9Z SZ O O% PZ£ D Ob LS £V V" O% 17Z 95 M OE %0 M 6L£ .IL's V SV 0V OZ Ln Or 617 �O• sz Z0£ clad I LA 9S 11 LZ VZ 17Z SE h ON VZ ZEE u13 9E LS 8E ref d' %0 817 00 M VO oo A9I1e alddd I I Burnsville Eagan Farmington Hastings Inver Grove Heights all!na )Iel Mendota Heights Rosemount South St. Paul West St. Paul Small Cities TOTAL V Q CaN) A 0 W u 0 Z a L N s C v 0 ed w t a O Z 'c C 0.0 N C 0 at t N lei -0 a) d u O L 41 d L E o c E O 0 s vi A o -c u C o u a c, o o a Q o O o U a,.5 s CO CU L 0 t C fa E 5 c C 0 u C O 1).0 C E 1%0 01 L a O C O 46 LL C u 0 -o Z N C 0 W al RS V C 0.1 'CI at C in d a) O E 3 u _Z o y Z N w 0 Z u, U d C 0 0 u c c n U a c'0 N C O C) E 2 0 October 2009 Critics say mortgage program failing TwinCities.com TwinCities com Page 1 of 2 Critics say mortgage program failing But administration says modifications ahead of goals By Christopher Snowbeck csnowbeck @pioneerpress.com Updated: 10/08/2009 09:49:29 PM CDT There's debate in Minnesota and elsewhere about how well a federal program to promote mortgage modifications for troubled homeowners is working. On Thursday, the federal government said its Making Home Affordable program had achieved a key milestone of handling some 500,000 trial modifications and had reached the goal nearly one month ahead of schedule. The Obama administration announced the mortgage modification program in the spring as a way to prevent foreclosures and stabilize the housing market. In July, the government asked home loan servicers to ramp up implementation of the program and set a goal of a 500,000 modifications by Nov. 1. San Francisco -based Wells Fargo Co., the largest bank in Minnesota by deposit share, was trumpeting Thursday the contributions it has made to hitting the half million target. Wells Fargo said it nearly doubled trial modifications through the federal program in September over August. "We continue to work hard at keeping people in their homes," said Mike Heid, co- president of Wells Fargo Home Mortgage, in a statement. But others Thursday were skeptical. Many borrowers who have completed trial modifications have yet to receive a permanent offer from the company that's servicing their mortgage, said Mark Ireland of St. Paul -based Foreclosure Relief Law Project. Ireland's group in July filed a class action lawsuit against the government arguing that the modification program is not being administered properly. Michelle Vojacek, coordinator for St. Paul's mortgage foreclosure prevention program, said that in some cases, troubled homeowners seeking modifications through the federal program face lengthy waits to get into a trial deal. In other cases, homeowners who complete the trial program find themselves being offered full modifications with worse terms, Vojacek said. "It's kind of all over the board depending on the lender," she said. We are seeing some folks that are getting good, fixed -rate loan modifications, and we're seeing some that aren't." With unemployment continuing to rise and millions of homeowners with mortgages far above their property values, the federal program has plenty of doubters outside Minnesota, too. In Washington, the Congressional Oversight Panel, created to monitor how taxpayer bailout dollars are being spent, warned that the program seems sure to prove ineffective. The Obama administration's efforts, while laudable, are likely to fall far short because the foreclosure crisis has grown and threatens to dwarf government efforts to relieve it, the special congressional watchdog panel warned in a report to be released today. http://www.twincities.com/business/ci_13519273 Print o ered y 10/13/2009 Critics say mortgage program failing TwinCities.com TwinCities com Page 2 of 2 The congressional panel wasn't critical of those efforts; it simply said that they'll be swamped by changes in the market. The economic crisis and rising unemployment is pushing many more prime mortgages, even those given to the most creditworthy borrowers, into default. From July 2007 through the end of August, 1.8 million homes were lost to foreclosure and 5.2 million more foreclosures were started, the report said. The program "is going to have a fairly marginal effect," on the foreclosure crisis, said Laurie Goodman, senior managing director of Amherst Securities in New York. "At the end of the day, you're going to have relatively few successful modifications." "It's not working fast enough and it's not working broadly enough," said Kevin Stein, associate director of the California Reinvestment Coalition, based in San Francisco. "There are no obvious consequences to the servicers for not doing what they're supposed to be doing." On Thursday, the federal government said lenders have extended trial modifications to 757,955 borrowers, about 24 percent of mortgages eligible for the program that are 60 days or more delinquent. Minneapolis -based U.S. Bank began participating in the program in September and had offered trial modifications to 3 percent of eligible borrowers who were more than 60 days past due at the end of the month, according to the report released Thursday. But Steve Dale, a spokesman for U.S. Bank, said the bank's total was much higher the government's report understated the number of modifications offered due to an error in the reporting process, he said. U.S. Bank has provided many more trial and full modifications outside the context of the federal program, Dale added. Reports from Associated Press and McClatchy Newspapers were used in this story. Christopher Snowbeck can be reached at 651- 228 -5479. http://www.twincities.com/business/ci_13519273 Print Powered 0y' 10/13/2009 Foreclosures up 5 percent from summer to fall Real estate Page 1 of 2 MSNBC.com Foreclosures up 5 percent from summer to fall Unemployment is forcing many out as federal programs are overwhelmed The Associated Press updated 11:16 p.m. ET, Wed., Oct 14, 2009 WASHINGTON The number of households caught up in the foreclosure crisis rose more than 5 percent from summer to fall as a federal effort to assist struggling borrowers was overwhelmed by a flood of defaults among people who lost their jobs. The foreclosure crisis affected nearly 938,000 properties in the July- September quarter, compared with about 890,000 in the prior three months, according to a report released Thursday by RealtyTrac Inc. That puts foreclosure related filings on a pace to hit about 3.5 million this year, up from more than 2.3 million last year. Unemployment is the main reason homeowners are falling into trouble. While the economy is likely out of recession, the unemployment rate now at a 26 -year high of 9.8 percent isn't expected to peak until the middle of next year. Mortgage companies sometimes allow unemployed homeowners to defer three to six months of payments while they are looking for a job. But there's little else they can do. "The sheer scale of the problem is preventing the loan modification programs from having the kind of impact we'd all like" said Rick Sharga, RealtyTrac's senior vice president for marketing. Last week, the Obama administration hailed a milestone in its mortgage relief effort, reporting that 500,000 homeowners have received help since the program was launched in March. But new defaults are still exceeding the number of borrowers getting help. Mortgage companies have slowed down the pace of foreclosures as they evaluate whether borrowers qualify for the administration's program. Analysts, however, forecast that many of those homeowners won't qualify, and foresee a new wave of foreclosed properties hitting the market next year. That's likely to further depress home prices. Some homeowners are in such a massive financial hole that it's hard to design a modification that will actually provide lower payments. And some have avoided paying their monthly bills for a long time. Carlos Estrada, 57, of Tulare, Calif., for example, hasn't made a mortgage payment since February 2008. The construction jobs that kept him working more than 40 hours a week during the housing boom have all but vanished. Earlier this year, he turned down a modification offer from Bank of America because it would have incorporated his unpaid balance and raised his monthly bill. But a bank spokeswoman said Wednesday that Estrada's foreclosure sale had been postponed until late next month while the bank reviews whether he can qualify for help. "I'm still here waiting for them to help me resolve this situation," Estrada said in Spanish. According to the RealtyTrac report, there were nearly 344,000 foreclosure- related filings last month, down 4 percent from a month earlier but still the third highest month since the report started in early 2005. It was the seventh 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 nearly 88,000 homes in September, up from about 76,000 a month earlier. http: /www.msnbc.msn.com/id/33 316659 /sn/business- real_estate /print/ 1 /displaymode/ 10... 10/15/2009 Foreclosures up 5 percent from summer to fall Real estate Page 2 of 2 On a state -by -state basis, Nevada had the nation's highest foreclosure rate in the July- September quarter. Arizona was No. 2, followed by California, Florida and Idaho. Rounding out the top 10 were Utah, Georgia, Michigan, Colorado and Illinois. 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. URL: http: /www.msnbc.msn.comiid/ 3331. 6659 /snibu.siness- real_estate/ MSN Privacy Legal 2009 MSNBC.com http: /www.msnbc.msn.com/id/3 3316659 /sn/business- real_estate /print/ 1 /displaymode/ 10... 10/15/2009 State's mortgage crisis far from over TwinCities.com TwinCities com Page 1 of 2 State's mortgage crisis far from over Homeowners see fresh flurry of foreclosure alerts By Christopher Snowbeck csnowbeck @pioneerpress.com Updated: 10/15/2009 10:55:11 PM CDT Minnesota is not out of the foreclosure woods yet. Pre foreclosure notices often a precursor to a lender repossessing a home have been on the rise in the state this year. Last month, lenders sent 6,411 notices to troubled homeowners in Minnesota 16 percent more than in January, according to numbers released this week by the Minnesota Home Ownership Center. The rate of increase was even greater in the metro area. "Minnesota still has a long way to go before we reach the end of the foreclosure crisis," said Ed Nelson, spokesman for the St. Paul -based group, which operates a network of foreclosure prevention counselors. Meanwhile, the Minneapolis Area Association of Realtors reported Thursday that homeowners trying to avoid foreclosure by slashing prices to less than what is owed on the house or "short sales" are struggling to close deals. Whereas the supply of bank -owned foreclosed homes on the market has dwindled dramatically in the past 12 months, the supply of short-sale listings has remained relatively constant, according to the report. "Short sales are selling so infrequently that everyone is losing a very real opportunity to save houses from foreclosure," said Aaron Dickinson, a real estate agent in Plymouth with Edina Realty. A variety of complications is scuttling short sales, according to real estate agents. In some cases, would -be buyers must wait months just to get a response on their offer, Dickinson said, only to find the lender won't accept it. In other cases, buyers are walking away from their offer rather than endure delays, he said. That's especially true this fall as first -time buyers try to take advantage of a federal tax credit that requires buyers to close by Nov. 30. "If these things could be handled in a more efficient manner, it would do everyone a lot of good," Dickinson said. "2009 was the year of the foreclosure. In order to stabilize housing, 2010 must become the year of the short sale." In 2008, Minnesota saw a record number of foreclosed homes a total of 26,251, according to HousingLink, a nonprofit group in Minneapolis. Through the first half of this year, foreclosures were off by 20 percent from the 2008 pace, according to HousingLink. Despite the decline, many housing experts fear the situation will get worse before it gets better. Many lenders put a temporary hold on new foreclosures during the first half of 2009 while the federal government worked out details of a program to promote home mortgage modifications. Plus, with the weak economy, more homeowners are going into default in Minnesota and across the country. Foreclosure prevention counselors have different takes on whether the increase in pre foreclosure notices inevitably will lead to more foreclosures. http://www.twincities.com/allheadlines/ci_13573140 Dyna Print Powered By 10/27/2009 State's mortgage crisis far from over TwinCities.com TwinCities corn Page 2 of 2 The federal government reported earlier this month that a growing number of troubled homeowners are being helped by trial mortgage modifications. "An overall increase in these notices, may not mean a direct correlation with an increase in foreclosures, but potentially an increase in delinquencies," said Cheryl Peterson, manager of the foreclosure prevention program for Twin Cities Habitat for Humanity. But Dan Williams of Lutheran Social Services of Minnesota, which provides foreclosure prevention counseling in many parts of the state, said he thought more foreclosures are on the horizon. "I think we will not get back to 2000 -2007 levels of foreclosure for at least two to three more years," Williams said. There was a silver lining in Thursdays report from the Minneapolis Realtor group, according to Dickinson, one of the report's authors. The inventory of bank -owned foreclosed properties on the market dropped from by 60 percent. "When more foreclosures do come through the system," he said, "at least they're not coming into an over burdened market." Christopher Snowbeck can be reached at 651 -228- 5479. http://www.twincities.com/allheadlines/ci_13573140 Print Powered By t 10/27/2009 r•r O O C O O cfq n O G O 0 p t n� Ef O n t"n w 1' H 0" ,.o5 0 zacnf E sC n n rr g CD 0 0" o rr O O "O 0 'p rr o' O n' d C n O cD m n n �'t3 n p O� '-''.`i rr O Sc n n p' w O c° `n c C o n" .0 n rr o o O n 0 t N rn O O n O CD pi, G Q' O O' 5. 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