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HomeMy WebLinkAbout01-26-107. Adjourn Attachments: City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, January 26, 2010, 5:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order 2. Approve November 24, 2009 meeting minutes 3. Election of Officers 4. Continued Discussion of Business Assistance Policy Issues 5. Review and Discussion of 2008 -2010 Strategic Plan for Economic Development Work Program for 2010 6. Director's Report December 2009 Building Permit Report December 2009 Foreclosure Update from the Dakota Co. CDA "Minnesota Supreme Court hears Eagan eminent domain case," TwinCities.com, 1/710 "Homebuilding: How your town compares," StarTribune.com, 1/20/10 "A business recycled," StarTribune.com, 12/14/09 Members Present: Comms. Matasosky, Tushie, Vlasak, Starfield, Schubert, Emond, Brantly, Longie, Smith, Erickson, Ex- officio member Mayor Holly Dahl, Ex- officio member City Administrator Steve Mielke, Ex- officio member hamber of Commerce Executive Director Todd Bornhauser. onomic Developme Members Absent: None. Others Present: David Olson, Community Kienberger, Economic Development Specialis 1. Call Meeting to Order Chair Matasosky called the meeting to order at 0 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke` v ue, Lakevifil Minnesota. 2. Approve September 29, 2009 Meeting Minute Motion 09.11 3. Discussion of City of Lakeville Economic Development Commission Meeting Minutes November 24, 2009 Marion Conference Room, City Hall evelopment Incentives -mm a Director; Adam and /Erickson moved to approve the minutes of the 2009 meeting as presented. Motion carried Dave lson reviewed the DC memo and discussed recent requests for incentives f m several different business prospects. Mr. Olson queried the EDC for their thoughts on how to best address to these types of requests as they are becoming more„ ommon. While often times the businesses ask about financial incentives, staff rimes times attempts to inform the businesses about other things the City can do to ma is the rigitfocation for them. Chair Matasosknoed that there should be a consistent response to businesses considering Lakeville and a strategy for addressing the "incentives" requests. A checklist outlining what we have to offer is a good start to this issue. This could be in the form of a decision- making matrix and a document outlining the tools that are available in Lakeville. Chair Matasosky continued by suggesting a return on investment (ROI) model be developed reflecting businesses that have received financial assistance in the past. We need to provide information and attributes of Lakeville to the "decision makers" of the company and past the initial inquiry by a broker or site selector. Economic Development Commission Meeting Minutes November 24, 2009 Steve Mielke added that staff is seeking a clearer policy on when to explore certain "tools" that may be available to Lakeville. The requests are not always about financial incentives, but that is often what is asked because the company doesn't know what else the City can offer. We should explore ways to better market Lakeville's attributes. Comm. Emond mentioned that we could track how past projects that have received assistance from the City have fared. This could help establish a baseline /history to help evaluate future proposals. Comm. Brantly suggested doing some case stu Lakeville. Use testimonials from "satisfied customs the City. Ex- officio member Bornhauser stated that uve need to find something to make Lakeville a trendsetter in the marketplace something to put us out ahead of other communities. Comm. Starfield asked if the recent Malt -O-Mea project received tax increment financing (TIF) benefits for com g akeville. Mr. Olson responded that the 25 -year TIF district Malt -O- heal is locating in captures increment to repay the„ costs orig*Ily associated with the land purchase and infrastructure improvemer Mr. Mielke added that while F can bused to offset public improvement costs, the message historically in Lake- has been t at we don't generally do TIF. Comm. Starfield no Lakeville end u ou ecation? Corgi Tushie responded that incentives /benefits should be looked at as a way of comparing the cost of 1ating in Lakeville to someplace else. For this comparison we hav t,onsider oelves as in the Metro. Cities in the Metro don't use TIF for industrial evelopment but will sometimes use it for office or housing projects. To be competitive have to evaluate the cost of City fees, connection charges etc. successful projects in market and promote at it's difficult o. see a business that may have considered in a city like Faribault. How can we market the benefits of Comm. Tushie added that we should also discuss a focus on encouraging "affordable housing" and realize that this does not mean the same thing as "low income" housing. Comm. Brantly mentioned the use of deferrals or delayed payments on land the City could sell for development. Economic Development Commission Meeting Minutes November 24, 2009 Comm. Vlasak asked if the City still owns any land to use as incentive for development. Mr. Olson responded that the last piece of developable land the City owned was recently sold as part of the ImageTrend expansion in the Fairfield Business Campus. This was only made possible because the land was originally identified as a future water treatment site that is no longer needed. A deferred payment subsidy was utilized for the LifeTime Fitness development as part of a long -term City council goal to attract a large fitness /community center. Comm. Tushie noted that what a lot of industrial users are currently looking for is outdoor storage; there are few spots in the Metro wicere is is available. The City could use this as one way to make us a more desirable location for some businesses who would typically locate in the ncter out from tMetro area. 4. Review of 2010 Community Developme Mr. Olson reviewed the EDC memo outlinin the Dakota County Community Development the funding is being proposed a follows: Comr expanding the a lock Grant (CDBG) Application Downtown Code Improvement Progra,,, $67,413 Senior Center Roof/Window "Replacement '$60,000 Home Rehab $10 000 �.o ram a ro fi����s. �F� Reallocation of remaining 2006 Downtow Acquisition/Clearance' Home Rehab .oanrn $13,438 2010 request for CDBG funding to cy (CDA). Mr. Olson noted that CDBG money can be spent on land acquisition for nior Center. Mr. Ike responded at while that is an eligible expense, the City Council has not identified identifi*t that activity as goal at this point in time. Comm. Enl askednrho solicits homeowners and businesses for utilizing the Home Rehab rogram and the Downtown Code Improvement Program. Mr. Olson responded that the City markets these programs to targeted areas in the City. Comm. Erickson asked if the VFW in Downtown Lakeville was considering expanding. Mr. Olson replied that they are currently discussing this possibility. Economic Development Commission Meeting Minutes November 24, 2009 Motion 09.12 5. Presentation of Next Generation Broadband for Dakota County Video Adam Kienberger reviewed the EDC memo and outlined the importance of making people aware of the benefits of broadband technology for economic development. The EDC watched the Dakota County Needs Next Generation Broadband video. Comm. Brantly asked how much it would cost to „implement t in Lakeville. Mr. Mielke replied that it is different for every community and fhat there is not necessarily a public -only or private -only lution bringing this ethnology to Lakeville. The purpose of the discussions ahis tads to simply raise awareness of the need for next generation broadband. Mr. Mielke added that the Minnesota Ultra High Speed Broadband Taskforce recently released a report discussing thi ssue and set goals for the State of Minnesota. Comm. Brantly as wireless? Mr. Mielke stated that wiry Com r. they Mr. Mielke'= Comms. Emond/Tushie moved to recommend submittal of the 2010 Community Development Block Grant application, as presented, and forward this recommendation to the City Council. Motion carried unanimously. type of infrastructure providing this type of service. Is it fiber or rovtde the services discussed in the video. e know the number of businesses in Lakeville that need at many businesses don't even know they need it, because it or understand everything that can be done with it. available, Lakeville would be able to attract new types of businesses th wn t even consider locating here at this time. `r� Staff indicated that it would continue to keep the EDC informed on this issue. 6. Discussion and Recap of 2009 Manufacturers Exchange Event Mr. Kienberger reviewed the EDC memo and noted that the new format for the Manufacturers Exchange garnered an overall positive response from the manufacturing /industrial business community. He added that after the event all of the attending businesses were contacted to solicit feedback and suggestions for next year; responses are included in the EDC memo. 4 Economic Development Commission Meeting Minutes November 24, 2009 7. Business Retention Visit Summary 9. Chair Matasosky stated that he followed up with some of the businesses who did not attend to let them know that several of the attending businesses would have liked to have met them at the event. Comm. Schubert added that her company met with several businesses at the event, but would have liked to see more businesses from the industrial park present. She suggested that the event be marketed stronger next year to increase attendance. Comm. Longie noted that lower attendance is fairly comrn: for a first -time event. She suggested including some of the industrial park bu in some sort of "planning committee" for next year's event. Mr. Kienberger reviewed the Hearth and Horror usiness visit me Comm. Starfield added that one of the particularly interesting comments from the business had to do with how aggressive Staff; of Iowa appears to be in its economic development retention efforts. 8. Director's Report Mr. Olson reviewed the Director's Report. Mr. Olson provides Business Bullet; Business News:; from around the bditmun noted ore ang was adjo The mee Respectfully subs iced by: of a new publication entitled "Lakeville meant to replace the quarterly Lakeville a more frequent, succinct business news summary indicated that they liked the new format and n and can s newsletter was suitable for communicating usiness community. e EO_with a This publication i wsletter w ed at 5:20 p.m. Adam Kienberger, Economic Development Specialist Attested to: R. T. Brantly, Secretary 5 Memorandum ce,m .2 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: January 25, 2010 Subject: Election of Officers The February 22, 1994 Resolution Confirming and Defining the Purpose, Responsibilities and Terms of Office for the Economic Development Commission state that "at the first meeting of the year, the Commission shall elect a Chairperson, Vice Chairperson and Secretary from amongst its appointed members to serve for a term of one year." EDC members elected Jack Matasosky as Chair, Gary Tushie as Vice Chair and Bob Brantly as Secretary for 2009. Commissioners are asked to elect officers to serve the 2010 year. Memorandum To: Economic Development Commission From: David L. Olson, Community Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: January 26, 2010 Subject: Discussion of the City's Policy on Business Assistance While a discussion of the use of possible business assistance tools is appropriate at some point, staff suggests that prior to that, a broader discussion of the City's goals related to business development should take place. This discussion should address what the City values in terms of business development and what are the City's long term goals and vision for commercial and industrial development in our community. Once these values and goals are determined, then a policy regarding the use of business assistance tools can be developed to help achieve these values and goals. One question that should be asked is "What would cause the community to provide assistance to a business Attached is a sample business assistance policy that was developed by the League of Minnesota Cities. Included in Section 3 of this sample policy, which starts on the middle of page 1, are examples of criteria that a City can use to determine whether a project should be considered for business assistance. These are not suggested as the only eligible criteria or types of projects that could or should be considered for business assistance in Lakeville, but rather a starting point for discussions on the types of projects or criteria that could be included in a policy. Upon reaching a consensus on City development goals and values regarding business development, a more detailed discussion can take place regarding specific business assistance tools. i tem No. 'I- City of Lakeville Community and Economic Development The EDC discussed this issue at the November 2009 meeting and it was the consensus to bring this issue back for further discussion at a future meeting. The minutes included in your packet from that meeting provide a good overview of the discussion. Staff has prepared the attached list /matrix of possible business assistance tools as well as what are perceived to be several of Lakeville's marketable attributes. Possible Business Assistance Tools: Minnesota Investment Fund (MIF) o Financed through the Minnesota Department of Employment Economic Development (DEED) Private Activity Bond Financing (formerly Industrial Development Revenue Bond or IDB) o See City of Lakeville's Private Activity Bond Financing Policy 3/3/08 Minnesota Job Skills Partnership Grant (MJSP) o Funded by DEED in conjunction with a local educational institution Tax Abatement Tax Increment Financing (TIF) Recovery Zone Facility Bonds (Pending) Special assessments for public improvements Reduction/delay of development fees /charges Marketable Attributes: Preliminary and final plat combinations Administrative site plan approvals Focus on infrastructure (CR70 Interchange) Critical mass of commercial /industrial development Future marketability of property due to quality development standards Proximity to Twin Cities amenities /destinations (MSP Airport etc.) MN sales tax rebates or credits on capital equipment purchases LEAGUE OF MINNESOTA CITIES 1. PURPOSE SAMPLE BUSINESS ASSISTANCE POLICY This sample policy was compiled by Ehlers Associates Inc. at the request of the League of Minnesota Cities. CONNECTING INNOVATING SINCE 1913 Subd. 1.01. The purpose of this policy is to establish the City of (Insert City Name)'s position as it relates to the use of Tax Increment Financing, Tax Abatement and other business assistance programs for private development. This policy shall be used as a guide in processing and reviewing applications requesting business assistance. Subd. 1.02. The City shall have the option of amending or waiving sections of this policy when determined necessary or appropriate. Minnesota Statutes 116..994, Subd. 2, allows the City to deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the department. 2. STATUTORY LIMITATIONS Subd. 2.01. In accordance with the City of (Insert City Name)'s Business Assistance Policy, assistance requests must comply with applicable State Statutes. 3. ELIGIBLE USES FOR THE RECEIPT OF BUSINESS ASSISTANCE Subd. 3.01. As a matter of adopted policy, the City of (Insert City Name) will consider using a business assistance tool to assist private developments only in those circumstances in which the proposed private projects meet one or more of the following uses: A. To meet the following housing related uses: 1. To provide a diversity of housing not currently provided by the private market. 2. To provide a variety of housing ownership alternatives and housing choices. 3. To promote affordable housing for low or moderate income individuals. 4. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading in existing housing stock in residential areas. B. To remove blight and encourage redevelopment in the commercial and industrial areas of the City in order to encourage high levels of property maintenance and private reinvestment in those areas. C. To increase the tax base of the City in order to ensure the long -term ability of the City to provide adequate services for its residents while lessening the reliance on residential property tax. D. To retain local jobs, increase the local job base, and provide diversity in that job base. E. To increase the local business and industrial market potential of the City of (Insert City Name) F. To encourage additional unsubsidized private development in the area, either directly, or through secondary "spinoff' development. G. To offset increased costs of redevelopment, over and above the costs that a developer would incur in normal development. H. To accelerate the development process and to achieve development on sites which would not be developed without this assistance. 4. BUSINESS ASSISTANCE PROJECT APPROVAL CRITERIA Subd. 4 .01. All new projects approved by the City of (Insert City Name) should meet the following mandatory minimum approval criteria. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual rights on the part of any potential developer. A. The assistance shall be provided within applicable state legislative restrictions, State Auditor interpretation, debt limit guidelines, and other appropriate financial requirements and policies. B. The project should meet one or more of the uses identified in Section 3, Eligible Uses for the Receipt of Business Assistance. C. The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to the Comprehensive Plan and Zoning Ordinances which would accommodate the project must be under active consideration by the City at the time of approval. D. The assistance will not be provided to projects that have the financial feasibility to proceed without the benefit of the assistance. Assistance will not be provided solely to broaden a developer's profit margins on a project. Prior to consideration of a business assistance request, the City may undertake an independent underwriting of the project to help ensure that the request for assistance is consistent as set forth in Appendix A. E. Prior to approval of business assistance, the developer shall provide any required market and financial feasibility studies, appraisals, soil boring, information provided to private lenders for the project, and other information or data that the City or its financial consultants may require in order to proceed with an independent underwriting. 2 Any developer requesting business assistance should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. G. It is desirable if the developer retains ownership of the project at least long enough to complete construction, to stabilize its occupancy, to establish the project management, and to initiate repayment of the business assistance. H. The level of business assistance funding should be reduced to the lowest possible level and least amount of time by maximizing the use of private debt and equity financing first, and then using other funding sources or income producing vehicles that can be structured into the project financing, prior to using additional business assistance funding. 5. BUSINESS ASSISTANCE PROJECT EVALUATION CRITERIA Subd. 5.01. All projects will be evaluated by the (Insert City Name) City Council on the following criteria (as set forth in Section 5.03) for comparison with other proposed business assistance projects reviewed by the City and for comparison with other subsidy standards (where appropriate). It is realized that changes in local markets, costs of construction, and interest rates may cause changes in the amounts of business assistance subsidies that a given project may require at any given time. Subd. 5.02. Some criteria, by their very nature, must remain subjective. However, wherever possible "benchmark" criteria have been established for review purposes. The fact that a given proposal meets one or more "benchmark" criteria does not mean that it is entitled to funding under this policy, but rather that the City is in a position to proceed with evaluations of (and comparisons between) various business assistance proposals, using uniform standards whenever possible. Subd. 5.03. Following are the evaluation criteria that will be used by the City of (Insert City Name): A. All proposals should, in the opinion of the City Council, optimize the private development potential of a site. B. All proposals should, in the opinion of the City Council, create the highest feasible number of jobs on the site. All proposals will meet the Business Subsidy Criteria established by the City. C. When considering business assistance for a relocating or new business request, the Council should weigh the impact on existing competition businesses which are already established in the community. D. All proposals should, in the opinion of the City Council, create the highest possible ratio of property taxes paid before and after redevelopment. Given the different assessment circumstances in the City, this ratio will vary widely. E. Proposals should usually not be used to support speculative industrial, commercial, and office projects. F. Assistance will usually not be used in a project that involves an excessive land and/or property price. G. All business assistance projects will need to meet the "but for" test. Assistance will not be used unless the need for the City's economic participation is sufficient that, without that assistance the project could not proceed in the manner as proposed. H. Business assistance will not be used when the developer's credentials, in the sole judgment of the City, are inadequate due to past track record relating to: completion of projects, general reputation and /or bankruptcy, or other problems or issues considered relevant by the City. I. Business assistance will not normally be used for projects that would generate significant environmental problems in the opinion of the local, state, or federal governments. J. Business assistance funding should not be provided to those projects that fail to meet good public policy criteria as determined by the Council, including: poor project quality; projects that are not in accord with the comprehensive plan, zoning, redevelopment plans, and city policies; projects that provide no significant improvement to surrounding land uses, the neighborhood, and/or the City in the opinion of Mayor and Council; projects that do not have significant new, or retained, employment; projects that do not meet financial feasibility criteria established by the City; and projects that do not provide the highest and best desired use for the property. The following supplemental policies are attached hereto and made part of the Business Assistance Policy: Attachment 1: Tax Increment Financing Policy Attachment 2: Tax Abatement Policy ATTACHMENT 1 Tax Increment Financing Policy 1. PURPOSE Subd. 1.01. The purpose of this policy is to establish the City of (Insert City Name)'s position as it relates to the use of Tax Increment Financing for private development. This policy shall be used as a guide in processing and reviewing applications requesting business assistance, and in conjunction with the City's Business Assistance Policy. The City shall have the option of amending or waiving sections of this policy when determined necessary or appropriate. 2. STATUTORY LIMITATIONS Subd. 2.01. In accordance with the City of (Insert City Name)'s Tax Increment Financing Policy, assistance requests must comply with applicable State Statutes. Minnesota Statutes, Section 469.174 through 469.179 (Tax Increment Finance Act), as amended authorizes local governments to utilize Tax Increment Financing to assist development and redevelopment of certain parcels within its boundaries. 3. POLICY BACKGROUND Subd. 3.01. The City recognizes that local government plays a critical role in enhancing the vitality of our community. This is particularly true as the city reaches full development. Subd. 3.02. All reasonable means shall be utilized to leverage private business development and redevelopment in the city consistent with this and other policies. Tax increment financing is an important and useful tool in attracting and retaining businesses. Subd. 3.03. The fundamental principle that makes tax increment financing viable is that it is designed to encourage development that would not otherwise occur. The City shall be responsible to determine that (1) a project would not occur "but for" the assistance provided through tax increment financing; and (2) no other development would occur on the relevant site without tax increment assistance, that could create a larger market value increase than the increase expected from the proposed development (after adjusting for the value of the tax increment). Subd. 3.04. The City shall consider tax increment financing in cases that serve to accomplish targeted city goals for development and redevelopment as they may change over time. These goals include, but are not limited to projects that will (1) foster and support redevelopment; (2) result in the creation or retention of a significant number of jobs that pay wages adequate to support households; or (3) assist with the retention and expansion of businesses, and (4) expand the city's tax base. 4. CREATION OF TIF DISTRICTS 5 Subd. 4.01. The City shall consider the creation of any of the general types of TIF Districts allowed by Minnesota Statutes or the creation of other types of TIF Districts allowed by Special Legislation, when doing so is consistent with the development and redevelopment goals of the City. Subd. 4.02. TIF Districts are the specific parcels within a Project Area from which tax increment is captured. MN Statutes currently defines five general types of TIF Districts which the City shall consider: 1) Redevelopment District 2) Renewal and Renovation District 3) Soils Condition District 4) Housing District 5) Economic Development District Subd. 4.03. In addition to these five general types of TIF Districts, defined by Minnesota Statutes, the City may also consider the creation of TIF Districts as authorized by applicable special tax increment financing legislation. Subd. 4.04. The City shall consider the creation of a TIF District based on qualifications and term restrictions, as defined in Minnesota Statutes. The Authority shall consider a range of attributes including but not limited to the following: Projects consistent with development and redevelopment goals of the city Development of office, office /corporate headquarters, office /service /warehouse and manufacturing Maximized use of other financial resources Projects that provide funding for appropriate public improvements that may benefit numerous development projects Low percentage of public investment; high percentage of private investment Analysis of detailed business pro forma with reasonable timeline for completion an occupancy Project has potential to enhance spin -off development and redevelopment Exceeds minimum design standards per City Ordinance Presents minimal risk to the City Maximizes increased tax base and contributes to higher market values Number of jobs and pay level of positions will be a consideration but not a requirement if other appropriate public purpose(s) is met 5. ELIGIBLE COSTS Subd. 5.01. The Authority shall consider the use of tax increment financing to cover project costs as allowed for under Minnesota Statutes. The types of project costs that are eligible for tax increment financing (under current state law) are as follows: TIF application deposit Architectural and engineering fees directly attributable to site work Earthwork/excavation Landscaping Streets and roads Street /parking lot lighting Sidewalks Special assessments Soils test and environmental studies Site related permits 6. DETERMINATION OF AMOUNT OF ASSISTANCE Soils correction Utilities (sanitary sewer, storm sewer, and water) Street/parking lot paving Curb and gutter Land acquisition Legal (acquisition, financing, and closing fees) Surveys Title insurance 6.01 Whether in a new or existing TIF District, the amount of tax increment financing provided to an applicant shall be based on a review of the following: Request for Financial Assistance Form (Exhibit A) Review of Applicant Pro Forma Amount of Increment Generated by the Project Subd. 6.02. The level of assistance shall be evaluated on a case -by -case basis and may reflect an increase or decrease in requested financial assistance. When considering a request for tax increment financing for a project, there shall be consideration of the level of financial assistance provided for other previously approved projects in the TIF District or Project Area. 7. FORMS OF ASSISTANCE Subd. 7.01. Tax increment financing shall generally be provided on a "pay -as- you -go" basis wherein the City compensates the applicant for a predetermined amount for a stated number of years. The City shall have the option to issue a TIF Note with or without interest, where the principal amount of the TIF Note is equal to the amount of eligible project costs incurred and proven by the developer. In all cases, semi annual TIF payments shall be based on available increment generated from the project. TIF payments shall be made after collection of property taxes. Subd. 7.02. Another form of assistance that shall be considered only in extraordinary circumstances is an "up -front payment" to the applicant. This may be in the form of a revenue or general obligation bond or an internal loan. The tax increment generated from the applicant's project is a source of revenue for repayment of the bonds or loan. This form of assistance is not one the City or City will generally consider because under this form of assistance the City assumes the risk that the tax increment will be sufficient for repayment of the bonds or interfund loan. 8. APPLICATION Subd. 8.01. The City will require a deposit in the amount of $10,000 from the applicant to investigate the feasibility of providing assistance to the applicant. If the City incurs additional expense beyond the $10,000 prior to execution of the Developer's Agreement, the City shall notify the applicant in writing and the applicant must deposit additional funds for work on the application to continue. If the project is approved and the applicant proceeds with the project, the applicant's deposit may be reimbursed as an eligible project cost to the extent permissible under MN Statutes. Subd. 8.02. In addition to the $10,000 deposit fee, the applicant must submit the following forms and documentation at time of application for the application to be complete and review of the application to begin: Request for Financial Assistance Form (Exhibit A) Project Pro Forma Documentation (Developed by Applicant) Memorandum 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: January 22, 2010 Subject: January Director's Report The following is the Director's Report for January of 2010. Building Permit Report The following is a brief summary of the 2009 City building permit statistics. The total value of all permits issued in 2009 was $72,782,473. This compares to $125,489,162 in 2008. The total amount of commercial industrial permits issued in 2009 was $7,339,500. This compares to $33,999,900 in 2008. The City issued permits for 126 new single family homes in 2009. This compares to 136 single family permits issued in 2008. The City issued permits for a total of 174 dwelling units in 2009. The compares to 415 dwelling unit permits in 2008. Attached is also a summary of the top metro area cities in terms of the number of residential building permits going back to 2000. Development Updates The new Ace Hardware Store in Downtown Lakeville was completed and opened a few days before Christmas. This new 16,000 square foot store is located across Holyoke Avenue from the previous Ace Hardware store. The new Green Planet Car Wash located at Dodd Blvd. and Heritage Drive also opened in late December. This is a new automatic environmentally friendly car wash with multiple detail bays. The new Malt-O -Meat office and technology center located in the former Hearth Technologies building on Kensington Parkway opened in December. There are approximately 200 Malt-O -Meal employees now working at this new location in Lakeville. The majority of the employees came from the company's production facility in Northfield along with some employees that were previously located in the corporate offices in Downtown Minneapolis. Foreclosure Update Attached is the year -end foreclosure update for Dakota County provided by the Dakota County CDA. The total number of Sheriff's sales in 2009 in Lakeville was 257 which compares to 286 in 2008. The number of Notice of Pendency Filings in 2009 was 592 which is up considerably from the 358 Filings in 2008. The Notice of Pendency is filed by a mortgage company as the notification that the foreclosure process has begun, however, not all of these result in sheriff sales. The total number of sheriff sales in Dakota County in 2009 was 1,860 which was down 10% from the 2,063 sheriff sales in 2008. Economic Development Association of MinnesotalEDAM) 2010 Legislative Policies Attached is a copy of the recently adopted 2010 Legislative Policy for the Economic Development Association of Minnesota (EDAM). The policies fall under the three categories of: I. Continued Resources for Infrastructure II. Enhancing Local Economic Development Activities and Organizations III. Passage of Renewable Energy Bioscience Investment Initiative. There are a number of specific legislative policies contained within each category that have been adopted by our state -wide economic development organization. Staff will provide updates during the Legislative Session on the progress or status of these adopted policies. Lakeville Business Bullets The City e- mailed out the first edition of Lakeville Business Bullets on January 12 to over 670 businesses and individuals. The feedback we have gotten so far has all been positive. We will be sending new editions of this newsletter each month. ECONOMIC EDAM Assn ON OF MINNESOTA WHO IS EDAM? The Economic Development Association of Minnesota (EDAM) is a statewide association representing more than 500 public and private sector professionals involved with implementing state, regional or local economic development initiatives. Our legislative policies are shaped by members' unique experi- ence and understanding of the tools and tactics that are most effective in positioning and marketing Minnesota as a loca- tion for corporate, small business, housing and community investment. Economic developers generally focus on financing, marketing and implementation strategies for: Developing public infrastructure; Facilitating business expansion, job creation, and redevelopment; Attracting, training and mobilizing a skilled local workforce; Addressing local housing needs; Marketing Minnesota's benefits as a place to live and locate a business. INTRODUCTION Economic Development creates and retains jobs and increases in- comes. This is done through enhancing human capital, supporting entrepreneurship, developing community infrastructure, market- ing to targeted industries, and promoting business development and retention. EDAM's legislative policies are established through surveying our members and consulting with our partners. EDAM anticipates that the nation's and the state's economic recovery will be slow and not uniform. Businesses that ultimately create the jobs that grow the economy will do so based on the demand for goods and services. Federal stimulus programs will take time to bear fruit and may not solve all economic problems. Notwithstanding the current deficit and economic challenges, EDAM encourages the State of Minnesota to look at both short term and long -term goals in its development strategies. EDAM and its members support continued investment in economic development programs so that Minnesota remains competitive with other jurisdictions both nationally and internationally. I. CONTINUED RESOURCES FOR IN- FRASTRUCTURE Issue: Minnesota's infrastructure, specifically our aviation, energy, rail, surface transportation, broadband telecommunications, and water systems, is the backbone of our economy. The State cannot remain economically competitive with the rest of the country and the world if these systems are not adequate. EDAM believes that investments in infrastructure are a key driver of economic devel- opment, not only through direct expenditure, but also by helping Minnesota companies compete more effectively on a global basis. Policy: The Legislature should continue to fund the Greater Minnesota Business Development Public Infrastructure Program to extend and upgrade infrastructure around the State. EDAM continues to strongly support proven statewide business development pro- grams such as the Minnesota Investment Fund and Redevelop- ment Funding. Priority should be given to maintaining funding for these existing programs. There has been a significant decline of construction jobs both in Minnesota and around the country. EDAM supports the goals of the JOBS Coalition as they relate to the use of federal stimulus money for the construction of infrastructure. Such infrastructure projects in 2010 would help stem the loss of the industry's institutional infrastructure. II. ENHANCING LOCAL ECONOMIC DEVELOPMENT ACTIVITIES AND ORGANIZATIONS Issues: With the current economic situation, there is a need to re- evaluate current economic development parameters and statu- tory restrictions that inhibit projects at the local level in the State of Minnesota. Tax Increment Financing (TIF) remains the most viable tool for economic development and community reinvestment efforts. It is a method local governments use to pay for the costs of qualifying improvements necessary to create new development, redevelopment, or publicly- assisted housing. The financing of the qualifying improvements is paid from the increased property taxes generated from the new development, redevelopment, or housing that would not occur "but for" such assistance. In light of the economic challenges in Minnesota, there are steps that the State could take that would enhance the effectiveness of TIF and generate more jobs and tax base. Policy: To spur additional development, EDAM encourages the Min- nesota Legislature to undertake the following targeted, time specific changes in the State's Statutes: a. Lengthen the duration of Economic Development TIF Districts from 9 years to 15 years. This would increase the number of feasible projects and would leverage more private investment in communities. Additionally, it would not have a fiscal impact in the State's budget. b. EDAM supports a technical change clarifying Section 469.101 subdivision 1 of the EDA Act that authorizes the establishment of "economic development districts" only if they satisfy the re- quirements of Section 469.174, subd. 10 (the redevelopment dis- trict test). EDAM believes the Act should authorize the creation of economic development districts if they satisfy the requirements of Section 469.174, subd. 12 (economic development district). c. Exempt EDA levies from City and County levy limits. By al- lowing EDA levies to be outside of the levy limits, economic development would have a more stable and secure source of funding. This would be similar to the levy policies for Min- nesota's HRAs, which are exempt from levy limits. d. Many small to medium -sized manufacturing businesses do not take advantage of the Sales Tax exemption on equipment because of the reporting process and having to wait up to a year or longer to receive a refund. The State of Minnesota's reimbursement process is lengthy and cumbersome. EDAM members overwhelmingly support that this sales tax exemp- tion be provided at the time of purchase. This change could reduce state administrative costs, as well. EDAM, recognizing the current year budget deficit, would work toward an effec- tive date of July 1, 2011, for implementation of a sales tax exemption on equipment at the time of its purchase. e. Cities may not appropriate more than $50,000 annually from their general funds to local or regional development organiza- tions for the purposes of promoting, advertising, or develop- ing the resources of the City. This provision (Section 469.191) was signed by Gov. Perpich 20 years ago. EDAM members strongly support providing stable and secure funding sources for economic development. For this reason and because of the length of time since the cap was established, EDAM would support increasing this contribution limit to $100,000. III. PASSAGE OF RENEWABLE ENERGY BIOSCIENCE INVESTMENT INITIATIVE Issue: A Green Job can be defined as one that provides a product or service that encourages resource and energy efficiency. Thus, the Green Economy can be seen as that part of the national econo- my that is devoted to the promotion and production of renew- able energy, the reduction of fossil fuels, the increase of energy efficiency, and the curtailment of greenhouse gas emissions. The advantages of the Green Economy include the macroeconomic benefits of investment in new technologies, greater productivity, job creation, and improvements in the U.S. balance of trade. Microeconomic benefits include lower costs of doing business and reduced home and business energy expenditures. For decades Minnesota's economy has been linked to the strength of its medical technology sector. Minnesota was the pioneer in pacemakers and kidney transplantation and many other medical innovations. To ensure the long -term success of Minnesota's medical technology industry, the State must develop new strengths in biologics, biopharmaceuticals, biomass, and other cutting -edge technology. This requires a long -term strategy of R &D, as well as public and private investment. Accordingly, EDAM believes that strong efforts are needed to grow these green, bioscience, and other technology jobs in Minnesota. Policy: EDAM supports passage of a Renewable Energy Bioscience In- vestment Initiative. This could include the following provisions: a. EDAM members support a statewide investment program for businesses that either locate or expand in the State. The program would include an Angel Investment Tax Credit and targeted sales tax exemptions. EDAM would support the establishment of a Job Growth Tax Credit which will be tar- geted toward green jobs projects, biosciences enterprises, and other high technology fields. This would promote the State's renewable energy goals and its Destination 2025 Roadmap, a 20 -year strategic plan to grow the Life Science Industry. b. Minnesota is a leader in the production of alternative fuels including E85 and Bio- Diesel. EDAM does support financial incentives, such as tax credits and producer payments, for all alternative energy technologies. c. EDAM supports amending Minnesota's TIF statutes that treat energy efficient and /or alternate energy technologies (such as geothermal, solar systems and wind energy), sustainable site design, and other "green" development alternatives as qualified development costs. Developers would need to provide Cities and Counties with data concerning the incremental costs of installation which exceed costs for traditional forms of energy systems. While there are additional upfront costs with the re- newable energy systems, the projects and communities would enjoy environmental benefits and lower operating costs. Memorandum item No 5 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: January 25, 2010 Subject: Discussion of 2010 Work Program for 2008 -2010 Strategic Plan for Economic Development Attached is a portion of the 2008 -2010 Strategic Plan for Economic Development that was approved by the City Council on December 17, 2007. Starting on page 17 of the plan are the approved goals and outcomes for this three -year plan. Also included in this plan are suggested years that specific goals would be pursued during the three year plan. During the meeting Staff will review progress made in 2009 on the Strategic Plan and also provide updates on continuing initiatives. The following are specific goals that are recommended to be pursued as part of the Work Plan for 2010 (Year 3): Transportation O Continue to participate in the development of transit service and facilities in Lakeville. O Participate in the MAC's Comprehensive Plan implementation for Airlake Airport as it relates to the realignment of Cedar Avenue. Life -cycle Housing O Help the City achieve reasonable and realistic housing goals that balance the need for different housing types for residents. D Help the City create a workforce housing approach that reflects the needs of business. Technology O Advocate for Lakeville to become a leader in telecommunications services. Growth Management l Continue to define and provide the information future businesses and developers need in order to decide to locate in Lakeville. Communication 0 Create a single effective message /platform about economic development. O Create and begin to implement marketing strategies. Partnerships O Develop and enhance partnerships whenever possible to achieve EDC goals. Staff is seeking comments and /or feedback from EDC members on these recommended goals to be pursued in 2010. 2008 -2010 Strategic Plan Goals and Outcomes After looking at the Significant Issues Questionnaire categories, Commissioners consolidated the information into six Significant Issues and corresponding goals and outcomes to address in the 2008 -2010 Strategic Plan for Economic Development. The Commissioners agreed that they would prefer a strategic plan that had a limited number of goals to ensure the EDC would have the time and resources to give each goal the attention it deserves. The following goals and outcomes will formulate the basis of the work plan. Seven strategic work areas and seventeen goals were identified for the 2008 -2010 Strategic Plan. The work areas and goals are listed below. *bolded items indicate the years these items will be emphasized Transportation 1. Complete the County Road 70 Interchange (Timing: Year 1, Year 2) a. Communicate with businesses during construction b. Keep focus on getting it done right c. Maintain post- interchange work d. Recommend land uses that will support current and future development 2. Participate in the development of transit in Lakeville (Year 1, Year 2, Year 3) a. How do we make the right investment for Lakeville? b. Encourage others to promote and plan together for a viable transit plan c. We must engage this process because decisions will be made with or without us d. Can we benefit from reverse commuting? e. Assist the political stakeholders 3. Promote continued planning of the East /West Corridors (Year 1, Year 2, Year 3) a. Getting future improvements on schedule b. Addressing the planning for the doughnut hole 4. Provide assistance to the City Council on the efforts to secure additional highway funding (Year 1, Year 2, Year 3) 5. Monitor the Airlake Airport and MAC's Comprehensive Plan (Year 1, Year 2, Year 3) a. MAC procedure to adopt long range plan 17 6. Investigate options for the use of the Urban Partnership Agreement (UPA) Grant for I -35 and Cedar Avenue transit facility development (Year 1, Year 2, Year 3) Life -cycle Housing 1. Help the City create a workforce housing approach that reflects the needs of business (Year 2) 2. Help the City achieve reasonable and realistic housing goals that balance the need for different housing types for residents (Year 1, Year 2, Year 3) a. Meets market needs b. Provides quality c. Addresses need for single family entry -level housing d. Advocate with other policy makers to agree on housing goals e. Research affordable housing options and solutions Technology 1. Advocate for Lakeville to become a leader in telecommunications services (Year 1, Year2, Year 3) a. Utilize recommendations of the Business Telecommunications Technology Task Force (BTTTF) b. Include redundancy c. Create partnerships (school district, County, private) d. Make Lakeville a place telecommunications providers choose to serve Growth Management 1. Advocate to maintain balanced growth (Year 1, Year 2, Year 3) a. Monitor, react, and if needed advocate for specific growth strategies b. Regional analysis of scenarios that may affect fiscal stability of City Continue to define and provide the information future businesses and developers need in order to decide to locate in Lakeville (Year 1, Year 2, Year 3) 3. Provide input on the Comprehensive Land Use Plan (Year 1, Year 2) a. Land use planning b. Implementation 4. Analyze the viability of additional office park locations in Lakeville 18 Communication 1. Create a single, effective message /platform about economic development (Year 1, Year 2) a. Why choose Lakeville? b. Challenges faced in Lakeville 2. Create a marketing plan that: (Year 2) a. Reflects Lakeville brand b. Identifies the right businesses to attract c. Analyzes the resources needed to be successful d. Complements other local efforts to promote this community Partnerships 1. Develop and enhance partnerships, whenever possible, to achieve EDC goals (Year 1, Year 2, Year 3) a. Technology initiatives must utilize partnerships to be successful 2. Explore opportunities to build relationships (Year 1, Year 2, Year 3) a. EDC representation on the Vermillion River Watershed Board Fiscal Management 1. Continue to encourage sound fiscal management by the City of Lakeville (Year 1, Year 2, Year 3) a. Public /private partnerships b. Balanced and growing tax base c. Communicating values of economic development services d. Explaining why money needs to be spent for economic development 19 2008 -2010 Strategic Plan for Economic Development Outcomes 1. A transit plan for Lakeville based on the benefits to local residents and businesses 2. A housing mix that reflects Lakeville's expected population changes and job growth 3. Leadership in telecommunications services becomes a point of distinction for Lakeville 4. A partnership with ISD 194 and possibly Dakota County is established for development of goals set forth by the Business Telecommunications Technology Task Force 5. Convey benefits of a marketing plan to the City Council 6. Secure EDC representation on the Vermillion River Watershed Board 7. New partnerships are explored and established with Dakota County 8. Lakeville remains in the bottom third for City property taxes in Dakota County 20 7:1 ej 0 1 U C5 0 U CID t U PO Q m 11 0 Po 0 ili O C o 0 LL U it 0 o 3 Q Q v) E. 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C. 0 0 000000000000 '.D 0 0 0\ 00 --I CA N \0 10 M 0 0 O O 00000000000 0 0 0 0 0 O o O o 0 0 O 0000000000 0 0 0 0 O O O N 0 0 0 0 0 0 0 0 0 0 +n o +n M in kn O O +n +n co N If 4 00 M o; O ri _M 0 .71- en 0 0 0 co N �O O M O O N 71 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O M O in O 0 0 CC O in II '.0 N O d' o CC M l O N N V r M 00 N O +n �D M o1 c(-5 N CO O O M M 00 M l� V7 00 N .--I 0 0 0 O 0 0 0 O O O O O O O O O O O O O M O d' O co 0 N C 71' O N M N 0 O O 0 0 C' N 00 N 00 N O v-) r- 0 O O b 0 0 0 O 0 0 O 0 0 0 o O o 0 0000000 0 0 0 0 0 0 0 0 0 0 O o O O kri0oo000 0 M --I000000 N O O O O In to 06 O 00 N M M M N N M M O '.0 M -ti 0 0 0 0 0 0 0 O O co O O O kr-)-+ o 0 0 0 0 O kr) M O 00 4 M Q\ N CN ‘.0 M 00 0 00 0 0 O vi O O O O 0 O 00 o 0 0 0 O 0 0 O 0 M N- S 0 0 O O O 0 O O O O o. o c O O +n V'1 M O M 4 CT N 7r' czn 00 O O O O o O o O o r--: 0 0 O O o O O O O O O O O O O O O O O O O O ON O O N N 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 it O 0 1) 0 00 O o O o 0 0 0 0 O 0 0 0 O O O I O O O O O C C C O 0 0 0 0 O O O O O O O O 0o O o0 N O N M .7r O d 0 0 0 0 0 0 O O O N '.D d N N O O N 0 00 N tel N or) O C a ^C C CG 0 6 0 w O bA N m O w C 0 O u R con vp N w C F Quarter of Sales 2008 of Sales 2009 Percent Change January March 552 402 27 April June 554 448 19 July September 525 499 5 October December 432 511 18 Total 2,063 1,860 10 Quarter of NOPs 2008 of NOPs 2009 Percent Change January March 593 934 58 April June 81 I 1,051 30 July September 796 986 24 October December 900 915 1.67 Total 3,100 3,886 25 c DA Dakota Cou Community Development Agency To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: January 12, 2010 Re: Foreclosure Update The following charts show a quarterly comparison from 2008 to 2009 of Sheriff Sale and Notice of Pendency numbers in Dakota County: Sheriff Sales Notices of Pendency Overall, Sheriff Sales decreased by 10 percent from 2008 to 2009. However, Notice of Pendency filings increased by 25 percent. The five cities with the highest percent of Sheriff Sales per household are listed below. The 2008 percents are also listed for comparison. The overall county percent was 1.23 compared to 1.37 percent in 2008. In 2009, Mendota Heights had the lowest percent with 0.29. Household estimates from the Met Council were used for 2009 (4/1/08) and for 2008 (4/1/07). 2009 1. Farmington 2. South St. Paul 3. Hastings 4. Lakeville 5. Rosemount 2.60% 1.63 1.56% 1.43% 1.42% 2008 1. Farmington 2. South St. Paul 3. Lakeville 4. Rosemount 5. Apple Valley 2.64% 2.60% 1.61% 1.55% 1.50% c DA Development CommuDakota County Agency The five cities with the highest percent of Notices of Pendency (NOP) per household are listed below. The 2008 percents are also listed for comparison. NOPs are official notification that the foreclosure process has begun, and not all notices will result in foreclosure. The overall county percent was 2.57 for 2009 compared to 2.06 percent for 2008, and the city with the lowest percent was Mendota Heights at 1.07. 2009 2008 1. Farmington 5.44% 1. Farmington 5.38% 2. South St. Paul 3.58% 2. Rosemount 3.32% 3. Lakeville 3.30% 3. South St. Paul 2.90% 4. Rosemount 3.07% 4. Apple Valley 2.26% 5. Apple Valley /Hastings 2.62% 5. Lakeville 2.02% Dakota County Stats December 2009 of Sheriff Sales in December 156 (compared to 126 in December 2008) Total Sheriff Sales for 2009 1,860 (compared to 2,063 Jan.- December, 2008) of Notices of Pendency Filed in December 269 Total Notices of Pendency Filed for 2009 3,886 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 As of the beginning of December, only 31,000 homeowners have received permanent modifications under the federal Making Home Affordable program. Lenders blame the low success rate on borrowers who don't return necessary paperwork. With a glut of vacant, foreclosed homes in Dakota County, some banks and listing agents have been hiring staging professionals to help make the homes more appealing to CDA Dakota County Community Development Agency buyers. Staged homes have a 6 percent higher selling price on average than non- staged homes, and they sell faster. Citigroup Inc. suspended foreclosures and evictions for 30 days during the holiday season. The suspension is set to run until January 17. A surprising number of homeowners who get their monthly mortgage payment reduced fall behind again within a year. Nearly 40 percent of homeowners who had their monthly payments cut by 20 percent or more in 2008 were delinquent again within a year, due in part to rises in unemployment. In August of 2009, the City of St. Paul launched a program to test strategies for how the city might best sell its vacant, foreclosed homes. Some houses had a price tag as low as $1, but buyers had to show they could finance extensive repairs. So far, most of the houses still sit empty. 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. 2008* 1 1 £8Z 86Z 1 ILZ LL I Ln 8Z1 98Z 17Z O 6L1 Ln LL £90`Z 600Z 9£Z 06Z 6SZ 8L1 Z£1 9Z1 LSZ M £01 S£1 65 ZL 098` )aa ZZ CO 17Z er Ln 00 L Z Ln ON O% 951 n o N l:l� OZ Ln .0 43 OZ O Ln C 1 M !I' P OE 8Z EZ £Z 00 00 LE N eP N Le) NI BIZ ;das 0 Z OE N. %O L!1 cNI O d' Ln r LS I any [V ZZ NO ZZ 00 cV V .0 M .o 091 Ind N Z£ EZ O SZ M N N N Z81 un(I N. SZ !f M a 9Z O N M N .0 851 Ae14 N OE 8Z Ln d- OO N N. N 0. P91 N EZ d' N 00 N O CO CO in 9ZI �eW `q' V M O Ln Ln O 't Ln 18 clod N OE -i 9Z SZ CO N. O LLI u er OZ LZ OZ Apple Valley ap!Asuan8 urae3 Farmington Hastings s4gapii aAo.10 .aawul F 911191ane1 Mendota Heights Rosemount South St. Paul West St. Paul Small Cities TOTAL V Q cs) Q CuO) V v c O V 0) C C U i- d Ln t n N N C i 0 N cc C V y O L N O d cd O d cvl a o V N at -o o c O 0 lCC� N i 0 a 0) L L 0 L c LL c U N N L a) L c co 3 O o o U N 0 O w (0 'I O 0 O E cv cc O L. December 2009 2008* I sty LLI» 1»01' I9£ Z91 1»61 8S£ 8E 9£Z LEZ Z91 91' 100 I`£_, 600Z 861» 6SS I 9ZS ZL£ ZZZ £SZ Z6S 817 ZZZ 96Z 1 6i71 61»1 988`£ Sad Z17 217 1 SZ 17z v. N «'1 69Z AON 8E LZ N O' Zi7 O O. EE N SLZ 430 OS LS OS LE OZ N 9S O. M 9Z N OZ 1L£ 4daS 09 6E S£ Ot 9Z 6S N CO CO M et 17t7£ and EE 8E 8Z c.1 0% ES N a) 1'Z O N I6Z In( 6E 85 LS SE OZ 1 6Z 917 N Nr hz Ln N is ung 917 617 SE EZ O: SS `Cr O: OE N OPE Ae EE LE L1» SZ bZ EZ ZS M 9Z SZ O O. PZE ad 017 LS £i7 0. hZ 95 M 0£ .O M 6L£ Jew' d- I sI OZ LA a` 617 0% I 8 Z ZO£ Clad L1" 9S 1»t' LZ 17Z 17Z SE N. 0. 17Z Z££ UV 9E LS 8E M .O 81' d. O' CO M .O x. 00£ Apple 'Valley aIUwswin8 ue2e3 Farmington Hastings Inver Grove Heights a illA91 E 1 Mendota Heights Rosemount Ined 1S 44noS pied lS ;sem Small Cities TOTAL V c cn Q c 4J Ul L t1,1 N as 44 O a± cd a) O _0_ z v c C u E _o 0 co t N /s N .0 N V O L L co N L d .00 E N O C L O U s L O s u c O u c O 1 L O 0_ C i� E O o O at o CD e s O t to C c C O u c N u uq e0 d O c d al 0 1 0 -p Z C v= 0 i u s c CO 0 0- N N v_ _0 v- O E O N N 0 Z 6 O z E F 1... N Q N 7 7 u u Notice of Pendency Filings December 2009 Citigroup to suspend foreclosures for 30 days Real estate Citigroup to suspend foreclosures for 30 days Bank is working on `long -term fundamental alternatives' to foreclosure The Associated Press updated 6:45 a.m. CT,Thurs., Dec 17, 2009 WASHINGTON Citigroup Inc. will suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season. The New York -based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck. "We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview. The suspension means Citi will halt foreclosure sales and stop evicting homeowners from properties it has already seized. The company projects it will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 that were due to receive foreclosure notices. Das also said the company is working on "some long- term fundamental alternatives" to foreclosure, but declined to be specific. "We know that moratoriums are not permanent solutions," he said. Most major lenders suspended foreclosures last winter while the Obama administration developed its $75 billion loan modification program. Foreclosures picked up again after those suspensions lifted. In recent months, they have fallen as banks evaluate whether borrowers qualify for the government program. Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a "reporting error" and said it will rise dramatically by year -end. "I have put a lot of pressure on my team to make sure that there is almost nothing left in the pipeline," he said. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. URL: http: /www.msnbc.msn. com/id134460803ins /business -real estate/ MSN Privacy Legal© 2009 MSNBC.com Print Powered By Page 1 of 1 0rt http: /www.msnbc.msn.com/id /34460803 /ns/business -real estate /print 1 /displaymode/ 10... 12/17/2009 Few borrowers helped by modified mortgages Real estate Few borrowers helped by modified mortgages Report: rising unemployment hits even the most credit worthy homeowners The Associated Press updated 10:46 a.m. CT,Mon., Dec 21, 2009 WASHINGTON One of the biggest challenges to ending the foreclosure crisis is this: A surprising number of homeowners who get their monthly payments reduced fall behind again within a year. When borrowers get into financial trouble, lenders have several ways to help. They can offer grace periods, longer repayment schedules, lower interest rates or reduced balances. But nearly 40 percent of homeowners who had their monthly payments cut by 20 percent or more last year were delinquent again within a year, according to a report Monday from the Office of the Comptroller of the Currency and the Office of Thrift Supervision. With the economy still weak and employers continuing to cut jobs, "even if you've gone through a modification, your situation may deteriorate," said Fred Phillips- Patrick, director for credit policy at the thrift office. That's an ominous sign for the Obama administration's plan to stem the foreclosure crisis. Lenders participating in the program have offered trial loan modifications to 760,000 eligible borrowers since it was launched in March. As of last month, just 31,000 of them had been made permanent, which requires at least three on -time payments and proof of income. Nearly the same number had dropped out of the program or were found to be ineligible. The meager success rate means the $75 billion program may bring little relief to struggling homeowners. A record 14 percent of homeowners with a mortgage are either behind on their payments or in foreclosure. And that affects many more homeowners because deeply discounted foreclosures are hurting property values in many parts of the country, especially Arizona, California, Florida and Nevada. The report found that, only 781, or less than 1 percent of the trial plans had been made permanent as of September 30, 2009. Part of the reason for the poor showing is that mortgage servicers don't have adequate staff and systems to process the increasing number trial plans. But regulators on Monday pointed to some encouraging signs among loans modified from April through June of this year. About 20 percent of those borrowers had missed at least two out of three payments. That's far better than the track record of loans modified during the same three months a year earlier. About 35 percent of those borrowers were delinquent within three months. The report also found that lenders completed about 31,000 short sales ones in which the sales price is lower than the mortgage balance in the July- Page 1 of 2 Print Po ered By atDyna http: /www.msnbc.msn.com/id/ 34509937 /ns/business real_estate /print/ 1 /displaymode/ 10... 12/22/2009 Few borrowers helped by modified mortgages Real estate September quarter While thats up 22 percent from the prior quarter lenders foreclosed on nearly four times as many homes. 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. URL: h1tp://onwvv.uzauhc.comz com/id/34509937/nstbusiness-real_estate/ MSN Privacy Legal© 2009 MSNBC.com Page 2 of 2 Print Powered By '.„,rm hthp 4509g37/oo/bnuinoo l lO— 12/22/2009 ThisweekLive Thisweek Newspapers /Dakota Co. Tribune Empty homes for sale receive... Page 1 of 3 Empty homes for sale receive staging style Tuesday, 15 December 2009 by Kara Hildreth Dakota County Tribune Staging a home before it is listed "for sale" is like a dress rehearsal for a live theater production. If a residential property is staged well, it receives a positive critics' review, and that often means a quick sale at a higher negotiated price for the homeowners. PHOTO: Fiorella Staging Concepts in Apple Valley created this "before and after" to show how staging can boost the visual appeal of rooms. Submitted photos Most buyers looking to buy a residential property cannot visualize a home's potential. So hiring a professional home stager can help them learn how to showcase each room's best features. But staging is serving a new purpose in today's economy. With the housing market bringing more foreclosures to Dakota County in the last two years, more vacant homes have required real estate agents to hire a stager to make the property look more appealing. "I get calls from the banks or listing agents, but most of my referrals are from agents to other agents, but sometimes the bank owns the property and hires me to stage it," said Cyndi Liemohn, owner of Staged in Style. "They (banks) know the vacant ones sit and it is worth it to them to make a small investment, and I come in and do the color and carpet selection." Some vacant properties have been left in disrepair by angry homeowners who have been foreclosed on. They take out their frustrations on the house by taking appliances, interior light fixtures, and in some cases toilets and sinks, Liemohn said. In these instances, banks need to replace fixtures and appliances before hiring a stager to evaluate the interior to get the property ready to list. http:// www.thisweeklive.com/index2.php ?option =com content &task view &id 13982 12/18/2009 ThisweekLive- Thisweek Newspapers /Dakota Co. Tribune Empty homes for sale receive... Page 2 of 3 Denise Husnik, an accredited staging professional for Fiorella Staging Concepts, said vacant and short -sale homes need the benefits of staging even more than a traditional residential properties. The need for staging foreclosed or short -sale homes will still be necessary into 2010. With the federal tax credit deadline being extended for new homebuyers until April 2010, the housing market is still sluggish, but is definitely a buyers' market, so staging is even more vital for homeowners to get the best selling price. Husnik said homebuyers are not jumping on the bandwagon to buy because the deadline is a few months away. With a background in retail and a merchandising degree, Husnik worked in real estate for five years and now helps to boost residential real estate sales for her RE /MAX Results team in Apple Valley, which provides free staging with each listing. Realtors understand how important it is because staged homes have a 6 percent higher selling price on average than non staged homes, and staged homes sell faster, Liemohn said. Many properties listed for six to 12 months sell in a week or two after having the staging completed and then the properties are re- listed, Liemohn said. "Some of my agents are amazed and so are homeowners," said Liemohn. "The last two years we have been really busy." Since Husnik's brother, Steve Fiorella, has many residential listings, "he and I are joined at the hip to make sure the pricing is done correctly," she said. Staging a home and having the property priced correctly will together help move a home more quickly, Husnik said. If it is not priced properly, it is not going to sell, she said. Since founding her company Staged in Style four years ago, Liemohn has worked in homes across the Twin Cities and assists realtors in south -of- the -river suburbs. When the housing market crashed, "I knew people needed this more than ever and it would be a nice segue into a new business," said Liemohn, who sold real estate for 14 years. "Ten years ago when houses were flying off the market there was not a need for staging." Liemohn relies on a network of people to help with painting, renovations and moving. Kristen Sevigny, a realtor with Keller Williams Preferred Realty in Lakeville who's used Staged in Style for two years, said the services have given her a boost in sales. As part of her marketing as a realtor, Sevigny pays for an initial staging consultation with homeowners, who get feedback on what furniture needs to be removed from the home, and Liemohn offers suggestions. http:// www.thisweeklive.com/index2.php ?option =com content &task view &id 13982 12/18/2009 ThisweekLive Thisweek Newspapers /Dakota Co. Tribune Empty homes for sale receive... Page 3 of 3 Husnik said she helped stage a home for one couple who had lived in their home for more than 20 years. "I'll never forget what a fantastic job they did," she said. The couple had the whole home repainted and worked for four months to get it all ready," Husnik said. The couple's home sold in two weeks. She credits the staging process. "They were just tickled pink because all his hard work paid off," she said. E -mail Kara Hildreth at: farmington.thisweek @ecm- inc.com http:// www.thisweeklive.com/index2.php ?option =com content &task view &id 13982 12/18/2009 Mortgage relief slow in coming to many Real estate Page 1 of 2 MSNBC.com Mortgage relief slow in coming to many Setback for Obama administration effort to stem growing foreclosure crisis The Associated Press updated 3 :39 p.m. CT, Thurs., Dec 10, 2009 WASHINGTON Just over 31,000 homeowners have received permanent loan modifications since March under the Obama administration's mortgage relief plan, spotlighting some of the program's failures. Among big lenders, Bank of America Corp. had the worst results. The nation's largest lender had only completed 98 modifications for the 160,000 borrowers who had signed up by the end of November. GMAC Mortgage had the most of any lender, just 7,100. The Treasury Department, which released the figures Thursday, said it will step up pressure on the industry to improve. The administration's focus is to "get as many of those eligible homeowners as possible into permanent modifications," said Phyllis Caldwell, chief of Treasury's homeownership preservation office. When the poor progress was clear last summer, the Treasury Department set a goal of enrolling up 500,000 borrowers by Nov. 1. With the clock ticking, many lenders started giving homeowners verbal approval for a temporary modification. "They were going to do anything to hit that number," said Marietta Rodriguez, national director of homeownership programs at NeighborWorks America. Under program, eligible borrowers who are behind or at risk of default can have their mortgage interest rate reduced to as low as 2 percent for five years. They are given temporary modifications, which are supposed to become permanent after borrowers make three payments on time and complete the required paperwork, including proof of income and a financial hardship letter. Lenders blame the low success rate only about 4 percent of the nearly 760,000 who have signed up on borrowers who don't return the necessary paperwork to complete the process. But Michael Heller of Salinas, Calif., says he and his wife have submitted all of the required documents and made six months of $1,800 payments to Chase, but have yet to receive an answer. "Every time we send them documents, they send us a form letter that says your modification is risk, you screwed up you didn't send us the necessary documents," said Heller whose landscaping business has taken a severe hit due to the recession. He figures the house he bought for $640,000 in 2006 is now worth $250,000. "You never talk to he same person twice," he said. "It makes you a little bit kooky. This has been extremely stressful." Chase did not immediately comment on their case. Mike Brauneis, director of regulatory risk consulting at consulting firm Protiviti Inc. predicts that only 20 percent of borrowers who were verbally approved for modifications will ultimately sign up. "Either people qualify verbally and never send their paperwork in, or they send it in and the numbers are different," he said. And some borrowers, who Tied about their incomes when they originally took out their loans, still aren't able to show proof. During the housing boom, the lending industry didn't require borrowers to prove their income, and those loans are highly concentrated in the states hardest -hit by the housing bust. More than half of loans made in California and Nevada from 2004 to 2007, for example, required little or no http: /www.msnbc.msn.com/id/34366879 /ns/business- real_ estate /print/ 1 displaymode/ 10... 12/14/2009 Mortgage relief slow in coming to many Real estate Page 2 of 2 documentation, according to research firm First American CoreLogic. Nationally about 4.3 million of those loans were made during the boom years. "You definitely have a group that shouldn't be in the loan in the first place" said Terry Moore, managing director of consulting firm Accenture's North America banking practice. A watchdog report this week said the government effort "appears capable of preventing only a fraction of foreclosures" and said that only $2.3 million out of a potential $75 billion government commitment had been spent. Steve Carpinelli, 39, of Alexandria, Va., thought he'd be a natural candidate for the Obama plan, after seeing his income drop 35 percent from about $65,000 two years ago. He's struggling, but has still made his $2,400 mortgage payment so far. Though he initially approved for a temporary modification, made four trial payments and sent back the necessary, he was denied last month. "It is the most grueling processes I have ever been through financially," Carpinelli said. A Citi spokesman declined to comment on his case but said, "if the borrower does not qualify, we look for other potential loss mitigation solutions." Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. URL: http: /www.msnbc.msn.com /id/ 34366879 /ns business- real_estate.% MSN Privacy Legal 2009 MSNBC.com http:// www. msnbc. msn .com/id/34366879 /ns/business- real_estate /print/ 1 /displaymode/ 10... 12/14/2009 City's hard lesson: Even a $1 price tag won't sell these houses TwinCities.com TwinCities com Page 1 of 3 City's hard lesson: Even a $1 price tag won't sell these houses Homes offered for rock bottom prices in August sit empty By Christopher Snowbeck csnowbeck @pioneerpress.com Updated: 12/28/2009 07:53:02 AM CST Three houses and a duplex stand vacant on St. Paul's East Side. The city is offering several of the houses for one dollar, so far they continue to stand empty. Saturday, December 26, 2009. (Pioneer Press: John Autey) When you can't sell a home that you've priced at $1, what's your next step? Cut the price to 50 cents? Try paying someone to take the house for a buck? St. Paul officials have learned some disappointing but not surprising lessons four months into a project to sell a cluster of city -owned homes at prices ranging from $50,000 all the way down to a buck. In August, the city's Housing and Redevelopment Agency sponsored a series of open houses for the HRA -owned properties clustered along the west end of Fourth Street in the Dayton's Bluff neighborhood. City officials said they would sell only to buyers who showed they could finance extensive repairs that satisfy both city rules and historic preservation guidelines. But despite heavy turnout at the open houses, the city has received only three purchase proposals thus far, said Sheryl Pemberton -Hoiby of the city's Department of Planning and Economic Development. Only one of the proposals, she added, likely will result in a sale. Potential buyers have been daunted by the scope of rehab work needed on the houses, said Ellen Biales, aide to City Council President Kathy Lantry. Another concern: Many of the properties lack off street parking. "People want garages," said Pemberton Hoiby. As the number of foreclosures has skyrocketed in recent years in the Twin Cities and across the country, cities like St. Paul have taken on the role of buying houses to address a sharp increase in vacant properties. Those vacancies can contribute to a downward spiral in values for other homeowners in the neighborhood. The result is that St. Paul now finds itself with not http://www.twincities.com/ci_14078379?nclick_check=1 Print Pow r By t:Dyna 12/28/2009 City's hard lesson: Even a $1 price tag won't sell these houses TwinCities.com TwinCities com Page 2 of 3 just the 11 homes in Dayton's Bluff, but another 59 properties spread across the city. About 30 of the homes likely will be demolished, but city officials hope to sell the others and promote neighborhood redevelopment efforts. The Dayton's Bluff program known as the Fourth Street Preservation Project was meant to test strategies for how the city might best sell its homes. The key lesson learned thus far: More investment in rehabilitating the homes on the front -end is needed to entice buyers. As one example, St. Paul is doing some initial surveying work to show potential buyers options for creating off street parking at some of the Dayton's Bluff homes. The city also is considering improvements to exteriors and mechanical systems in the houses. "People want to see the city's involvement that they're not the only ones taking on the risk," Pemberton -Hoiby said. With the additional investment, those $1 prices likely will be a thing of the past as the city looks to recoup the money. In one respect, the city's effort has coincided with some helpful trends in the local housing market, where a lot of the activity among buyers has been focused on low -price homes. Between December 2008 and last month, more than 12,000 homes priced at $120,000 or less have sold in the 13- county metro area, according to the Minneapolis Area Association of Realtors. That's a nearly 95 percent increase over the number of sales in that price bracket during the previous 12 -month period. Plus, there's been added incentive in recent months to purchase in Dayton's Bluff and nearby neighborhoods. In April, the Pohlad Family Foundation announced a $1 million grant to provide buyers in the 55106 ZIP code an area that includes Dayton's Bluff with $8,000. But all of the foundation funds have now been committed, said Zong Vang of Dayton's Bluff Neighborhood Housing Services of St. Paul, the nonprofit group that is managing the grant money. And the demand for low -price homes has been stoked by a huge supply of the properties, meaning buyers looking for discounted homes have had a lot of choices. The city's properties have been going up against some tough competition in the under $100,000 price bracket, said Brad Griffith, an agent with Edina Realty who has worked with buyers and sellers on St. Paul's East Side. Some buyers who've been looking for deals in homes priced at $25,000 to $40,000, Griffith said, wind end up opting for higher priced homes say about $80,000 when they see how the higher price tag translates into significantly less rehab work. Griffith said he's not familiar with details of the Fourth Street Preservation Project, but suggested that city officials might want to consider working with local real estate brokers to market the homes. That way, the homes could be listed on the Regional MLS of Minnesota, a propriety database used by Realtors. "The MLS is helpful from the exposure standpoint," Griffith said. http://www.twincities.corn/ci_14078379?nclick_check=1 Print Pow red By 12/28/2009 City's hard lesson: Even a $1 price tag won't sell these houses TwinCities.com Page 3 of 3 TwinCities com Better marketing would help the Fourth Street project, agreed Chuck Repke, executive director of the Northeast Neighborhoods Development Corp. But there have been other challenges. Many recent buyers of homes under $120,000 are investors looking to rent the properties or sell them following rehabilitation. The city wants to sell to buyers who will live in the properties. Repke said he agreed with the city's focus on owners who will be residents, but noted that those buyers constitute a much smaller group. Another challenge: Potential buyers are having trouble finding loans to finance the extensive rehab projects that are required to live in the Dayton's Bluff homes. "I think you can stimulate people to buy St. Paul," Repke said. "Before all of the markets collapsed everywhere, we were finding people making that decision to come back to the urban core.... If the credit market changes on some of this stuff, I think there will be buyers." Pemberton Hoiby, the city official who is project manager on the Fourth Street effort, said the city has not marketed the homes through the MLS because the sales come with so many strings attached in terms of rehabilitation requirements that the houses aren't standard listings. Even so, she said, the city is looking at ways it could compensate real estate agents for bringing buyers. While city officials would have liked to have sold some of the 11 homes by now, Pemberton -Hoiby said the properties in Dayton's Bluff and those elsewhere in the city continue to offer chances at improving neighborhoods. "Most of the properties were picking up haven't been rehabbed in a long time," she said, "if at all." Christopher Snowbeck can be reached at 651-228 5479. http://vvww.twincities.com/ci_14078379?nclick_check=1 Print Pow d By 12/28/2009 Minneso Advertisement Supreme Court hears Eagan eminent domain case TwinCities.com Page 1 of 2 TwinCities com Minnesota Supreme Court hears Eagan eminent domain case Three stores resist Cedarvale Mall property seizure By Frederick Melo fmelo@pioneerpress.com Updated: 01/07/2010 12:43:24 PM CST When the city of Eagan offered to buy out and relocate dozens of properties around the ailing Cedarvale Mall, most store owners said yes. Most, but not all. The owners of a U -haul outfit, an auto repair shop and a high -end car engine company balked at the deal, setting the stage for a long and complicated legal battle that culminated Wednesday with arguments before the Minnesota Supreme Court. At issue is whether the city's economic development authority had the power to seize the three properties by eminent domain, a controversial development tool that has been reined in by states across the country, especially as it relates to benefiting private developers. Through an agreement with Doran Development Pratt Homes, the city plans to redevelop 70 acres of the blighted Cedar Grove area south of Cedar Avenue and Minnesota 13 into a broad mix of housing, shops and office space. When the owners of Larson Automotive Repair Services, Competition Engines and the U -Haul Co. of Minnesota objected, city officials winced. The $30 million to pay for nearly 50 acquisitions and relocations came from a special taxing district tax increment financing funds that had to be spent by July 2008. "What happened here is they ran out of time," said Gary Fuchs, an attomey for Larson Auto Repair, alleging the economic development authority felt pressured to acquire the properties before the tax financing ran out. Eagan's five city council members also constitute the city's economic development authority. The economic development authority began "quick take" eminent domain proceedings in Dakota County District Court, giving the store owners 90 days to clear the premises. The three holdouts fought the proceedings. Other businesses including the Mediterranean Cruise Cafe and American Accounts fought their valuation estimates at first but eventually accepted the relocation packages. In April 2008, Judge Michael Mayer sided with the economic development authority, rejecting the argument that Eagan was trying to stockpile land and seize private property to benefit a private developer. Mayer found that the 70 -acre "gateway district" held substantial public benefit for the blighted area, including jobs, housing and improvements to traffic flow. The state appeals court, however, overturned Mayer's decision last May, and the city further a ppealed the ruling to the state Supreme Court. http://www.twincities.cominewsletter-morningici 14138540 Print Powered By 01/07/2010 Minnesota Supreme Court hears Eagan eminent domain case TwinCities.com TwinCities The three -judge panel paid special notice to an October 2001 city resolution that authorized a redevelopment plan for Cedar Grove. The resolution included a specific restriction against seizure by eminent domain unless financial guarantees were in place to recoup expenses, including a contract with a developer. The appeals court found that at the time of the eminent domain proceedings, there was no "binding development agreement" in place with Doran Pratt. An attorney for the economic development authority, however, has argued that the economic development authority's power of condemnation is based upon state statute and the self- imposed restriction holds little meaning. He noted that nothing in the city's initial enabling resolution that created the economic development authority explicitly limits its powers of eminent domain and said none of the required channels to alter the enabling resolution such as notice of a public hearing were ever followed. On Wednesday, City Administrator Tom Hedges said the legal to- and -fro would not affect the first phase of the Cedar Grove project. Doran -Pratt is seeking financing for a hotel, senior housing and up to 300 market -rate apartments, with 29 acres set aside for future development. A nearby transit station is expected to open this year. "It was the business community that asked Eagan to do something about blight and decline. It was the business community seeing things on the wane down there, particularly in the old mall, saying, 'Hey, do something,' city spokesman Tom Garrison said. "This effort was in response to that." Gerry Larson, of Larson Auto Repair, said he has shuttered his shop and found new employment in St. Paul but still hopes to reopen at the same location. U -Haul and Competition Engines continue to do business in their existing space. "We never expected this to take this long," Larson said. Eagan's eminent domain imbroglio has gained statewide attention, with business and municipal groups concerned about the impact on other economic development authorities and eminent domain disputes. The Minneapolis -based chapter of a property rights group, the Institute for Justice, has filed a 52 -page "friend of the court" brief in support of Larson and the other property owners. The League of Minnesota Cities has filed a brief in support of the city's economic development authority. Frederick Melo can be reached at 651- 228 -2172. Advertisement com http://www.twincities.com/newsletter-morning/ci 14138540 Print Powered By Page 2 of 2 01/07/2010 http://www.startribune.com/local/south/81888717.html?page=1&c=y StarTtlbu ne,com Advertisement Page 1 of 3 Homebuilding: How your town compares Jim Gehrz, Star Tribune A home under construction was surrounded by lots for sale along Hackney Avenue in a subdivision in Shakopee. Building in the south metro is showing few signs of a bounceback, although some are doing better than others. By DAVID PETERSON and KATIE HUMPHREY, Star Tribune staff writers Last update: January 20, 2010 10:42 AM Homebuilding remains in a deep slump across most of the southern suburbs, but it may have bottomed out in one or two places. A Star Tribune analysis of building permit data south of the river finds: Cities such as Shakopee that are closest to major job centers are likeliest to be showing a pulse after a long decline. Rural communities such as Jordan, representing especially long commutes, are still seeing almost no new construction compared to the brief burst in activity at the peak of the housing bubble. Once -busy cities such as Lakeville are still sliding downward, perhaps in part because the underlying demographics of suburban growth are turning chilly: There are fewer young middle -class families to draw from. Increasingly, in fact, cities that many still see as classic sneakers -and- hockey- sticks suburbs are now quietly depending upon senior housing as a source of construction activity. Inver Grove Heights, which the numbers suggest is a city on the rebound, actually owes most of its new 2009 living units 44 of the 59 to an assisted living facility, city officials say. http://www.startribune.com/templates/fdcp?1264010435786 Print Powered By, Fo r 01/20/2010 http://www.startribune.com/local/south/81888717.html?page=1&e=y StarTribu ne.com Advertisement And Shakopee owes its metrowide prominence as a growth leader to a combination of stimulus money and dirt- cheap foreclosed lots, says a builder based in that city. "We've got a two -year supply of lots yet," said Gene Juergens, owner of G.F. Juergens Construction. "The spurt we saw in Shakopee last year was because 250 to 260 lots were foreclosed and sold for a lot less money, close to half of what they normally sold for. That was a pretty good deal for the homeowner. And the federal stimulus, the $8,000 for first -time buyers, helped as well. We hope it will help into this year, now that ifs been extended. That helps get rid of inventory, but how sustainable it is remains to be seen." Distant cities see biggest hit With gas prices creeping back up toward $3 a gallon, officials in more distant cities such as Belle Plaine and Jordan are not expecting anything dramatic by way of a comeback. And that failure to launch goes straight to the pocketbook: Jordan's finance director told his city council in mid- November that the city was running $60,000 short of expectations when it came to building- related revenue. Cities that have seen the least -steep dropoffs in recent years are Shakopee, Apple Valley and Faiinington. Shakopee and Apple Valley are both close to major bridges leading to important job concentrations in Hennepin County suburbs. Farmington has benefitted, officials there say, from offering affordable homes close to big employers in and around Eagan. In Dakota County, an advance indicator of future development the number of plats, or land parcels, certified annually for some new use is still dropping. The county certified 39 in 2009, down from 56 in 2008 and 70 in 2007. Many of the changes have been in the commercial sector, where owners have combined two plats into one in order to add a parking lot or an addition to an existing business, said Karen Sutton, a property description technician with Dakota County. New residential plats, she said, are less common "There haven't been any really large development -type plats. A couple with 8 to 15 lots, but none of the huge ones that we used to have." http://www.startribune.com/templates/fdcp?1264010435786 Print Powered By Page 2 of 3 01/20/2010 http /www. startribun e. com /l o cal/south/ 818 8 8 717. html ?p ag e =1 c =y StarTribu ne.com The picture is similar in Scott County, said Mike Sobota, director of community development. "Where we have jurisdiction, in the 11 townships, we've seen very little if any platting activity one lot, two lots, nothing of any substance. It's a reflection of market conditions." The number of new homes in the townships fell from 67 in 2007 to 53 in '08 to 32 last year, he said. "Prior to that it was in the hundreds." What's next? "I don't know," he said. "The inventory of existing homes and the difficulty of financing any projects is really what the issue is. It'll be a period of time before we have any clarity." David Peterson 952 -882 -9023 dapeterson @startribune.com Katie Humphrey 952- 882 -9056 khumphrey@startribune.com Advertisement http://www.startribune.com/templates/fdcp?1264010435786 Print Powered By Page 3 of 3 t y narnie 01/20/2010 http: /www. startribune. com/ business /79273242.html ?elr=KArksUUUU StarTribu ne,com A business recycled Glen Stubbe, Star Tribune John Schmitz, left and Dan Hauschild, run Genesis Poly Recycling and will soon be recycling agricultural plastics like this at vendor Bueckers Sanitary in Sauk Centre, Minn. The revised fimi will make new raw material from waste ag plastic. AGSI will be reborn, but under the name Genesis Poly Recycling and in the city of Mankato. By DEE DePASS, Star Tribune Last update: December 14, 2009 9:50 PM A little over a year ago, AGSI Recycling partners John Schmitz and Dan Hauschild were jazzed to become the kings of plastic agricultural waste, transforming millions of tons of trashed silage bags, crop covers and hay bale wraps into neat, clean, plastic pellets for resale. The process, first of its kind in the Midwest, thrilled the Minnesota Pollution Control Agency (MPCA) and the U.S. Department of Agriculture because it promised to keep tons of plastics from being burned or dumped. But the euphoria was shortlived. "Are you sitting down Schmitz asked a reporter recently. "You know all that plastic? We had to landfill it. All of it." Without warning, AGSI's third business partner, Karl Bohn, pulled out of the start -up in September 2008, just before Wall Street banks collapsed and one week before the last piece of the factory equipment was to be installed in the AGSI factory in Savage. The 17 workers who had just begun washing, shredding and converting tons of junked ag plastic into commodity pellets joined the unemployment line. "I was devastated. I was in shock," said Schmitz "I didn't sleep. I put on 75 pounds." Advertisement http: /www.startri eon /templates /fdcp? 1260906156682 Print Powe d By 1 Page 1 of 4 12/15/2009 http://www.startribune.com/business/79273242.html?elr—KArksUUUU StarTribu ne.coi Advertisement http://www.startribune.com/templates/fdcp?1260906156682 Print Pow By Page2of4 Schmitz said he lived off savings for a year while trying to reconstruct the firm he'd founded. What a difference a year makes. The phone rang inside Schmitz's home office the Sunday night before Thanksgiving. It was Bryan Sowers, U.S. Bank's vice president for southern Minnesota, calling with good news. The bank had approved a loan for $7.44 million. AGSI will be reborn, but under the name Genesis Poly Recycling and in the city of Mankato. "I was jumping so high, I almost hit the ceiling," said Schmitz, a trucking logistics expert who is president of the new firm. "My wife was looking at me, like 'Who are you talking to She soon figured it out. I was very happy. We actually opened up a bottle of wine to celebrate. This last year has been an adventure." Hauschild, the plastics consultant who is now Genesis' CEO, CFO and co- owner, recalled "lots of cursing" over AGSI's stillbirth. But he said that's "behind us and now we are focusing on going forward as Genesis." "Nationwide, there are over 800 million pounds of plastic ag film used annually. About 25 percent of that material is available in the Upper Midwest," Hauschild said, adding the Environmental Protection Agency estimates half of that gets burned. Genesis gives farmers an alternative. It took Schmitz and Hauschild 15 months to bring their dream back to life. They scrounged $738,000 of their own money and w on a $3 million investment from their Chicago supplier, Crown Machine. With U.S. Bank on board, they expect to process 60 million pounds of plastic film waste next year. Trailers packed with dirty silage bags, hay wraps, crop covers and flower pots collected from across Minnesota and Wisconsin already sit in storage awaiting processing. In the future, a network of centralized collection points (13 in Minnesota and 42 in Wisconsin), will be ready, places where farmers may haul their plastic ag trash for Genesis to pick up. Schmitz and Hauschild are also working to secure ag waste from scores of sugar beet manufacturers in South Dakota. The duo can credit many for their rebirth, said Wayne Gjerde, recycling expert at the MPCA. The USDA liked the idea of ag waste recycling 12/15/2009 http: /www. startribune. cam business /79273242.html ?elr= KArksUUUU StarTribu ne.com so much it guaranteed 70 percent of Genesis' U.S. Bank loan. The MPCA kicked in a $100,000 loan, while the city of Mankato's economic development team worked hard to secure the old Spartech plastics plant for Genesis. On Nov. 30, the City Council voted to let the city buy the entire building so it could lease its 97,000 square feet to Hauschild and Schmitz and get production going. For jobs and the environment It's all about "jobs, jobs, jobs," said Mankato Community Development Director Paul Vogel. The Mankato City Council voted Monday night to endorse Genesis for millions in state JOBZ tax credits and $500,000 in state economic development loans. "It's a wonderful project," said Mankato Mayor John Brady. "It's great for the environment." Vogel agreed. "What really sold Mankato on this was the potential for job retention. They are looking to start out with 42 jobs and grow in two years to 115 jobs. These are jobs that pay livable wages." That's just what fornier Spartech workers Clem Hall and Greg Westphal want to hear. They've been nagging City Council members for weeks about the Genesis deal. "We've been calling them left and right and coming to the meetings. There were 80 to 90 people like us who lost their jobs, when Spartech closed in August 2008, said Hall, who is still collecting unemployment. "So a lot of these guys are praying like me that they may have a chance of getting in the door at Genesis. Many of them have 10 to 30 years of plastics experience." U.S. Bank's Sowers said it's a win -win for the community and the environment. "We believe in this. That's why we did the loan," he said. "The buy -in that we have seen from farm producers and the collection network is impressive." Many farmers don't know what to do with silage and crop wraps so they burn them. Now that there's an environmentally friendly alternative, farmers are "signing on the dotted line for [Genesis] to come in and collect their plastic and ship it away for free," Sowers said. On the flip side, Genesis should have a steady stream of buyers for its plastic pellets. Advertisement http://www.startribune.com/templates/fdcp?1260906156682 Print Po ered By Page 3 of 4 12/15/2009 http://www.startribune.com/business/79273242.html?elr=KArksUUUU StarTribu ne.com "What [Genesis] is producing is an extruder based pellet that is a commodity product, one that is sold nationwide and in South America. They will have more than enough buyers for their product," Sowers said. Local fines such as Master Mark, which makes Rhino plastic decking products, and plastics furniture maker By the Yard are likely customers. Hauschild and Schmitz said their final plastic "regrind" and plastic pellet products should fetch 20 to 65 cents a pound, depending on whether the regrind is cleaned or pelletized. Starting in 2011, the business should produce $18 million to $20 million in annual sales, Hauschild said. But Sowers said demand for recycled plastic pellets is so great that business could easily double in a few years. Fanners are optimistic. Its a good idea, said Amanda Schieselbein, whose family runs a 600 -head cattle farm and grows corn, wheat and soybeans on 2,000 acres in Kimball, Minn. The silage bags used to store cattle feed at her family's farm stand about 6 feet tall and can stretch the length of a football field, she said. Big chunks of the feed bags get ripped apart twice a day when it's cattle feeding time so that waste "piles up pretty fast," she said. Her father would be willing to pay $10 to $15 a month for someone to take it off his farm but would prefer to haul it to a centralized collection spot himself each week. That's good news to Schmitz "We are very excited and ready to get going," he said recently while checking over the piles of plastic faun waste already collected at Buecker City Sanitation. "We are coming back alive." Dee DePass 612 -673 -7725 Advertisement http://www.startribune.com/templates/fdcp?1260906156682 Print Powered Page 4 of 4 y 12/15/2009 Economic Development Commission 2010 Meeting Schedule January February March April May June July August September October November December Tuesday, January 26 2010 Tuesday, February 23, 2010 Tuesday, March 23, 2010 Tuesday, April 27, 2010 Tuesday, May 25, 2010 Tuesday, June 22, 2010 No Meeting Tuesday, August 24, 2010 Tuesday, September 28, 2010 Tuesday, October 26, 2010 Tuesday, November 23, 2010 No Meeting All meetings begin at 5:00 p.m. in the Lake Marion Conference Room at City Hall unless otherwise noted on the meeting schedule. All meetings are held on the fourth Tuesday of the month unless otherwise noted.