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HomeMy WebLinkAbout02-23-107. Adjourn Attachments: City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, February 23, 2010, 5:00 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order 2. Approve January 26, 2010 meeting minutes 3. Presentation of 2009 Annual Report on Economic Development 4. Review and Discussion of 2008 -2010 Strategic Plan for Economic Development Work Program for 2010 5. Presentation of proposed Cedar Avenue Bus Rapid Transit (BRT) Improvement Project 6. Director's Report January 2010 Building Permit Report January 2010 Foreclosure Report from the Dakota County CDA "Developers, cities weigh in proposed TIF changes," Finance Commerce, February 18, 2010 Members Absent: Smith, Starfield. 1. Call Meeting to Order 3. Election of Officers After a brief discussion, officer for the EDC. Motion 10.02 City of Lakeville Economic Development Commission Meeting Minutes January 26, 2010 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Tushie, Vlasak, Schubert, Emond, Brantly, Longie, Ex- officio member Mayor Holly Dahl, Ex- officio member City Administrator Steve Mielke, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser. Others Present: David Olson, Community Economic Development Director; Adam Kienberger, Economic Development Speciali tam No. a Chair Matasosky called the meeting to order at 5:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve November 24, 2009 Meeting Minutes Motion 10.01 Comms Tu shie/Emand moved to approve the minutes of the November 24, 2009 meeting as presented. Motion carried a nanimousy. it Matasosky asked if anyone was interested in being an Comms. Emond /Schubert moved to re -elect Jack Matasosky as Chair, re-elect Gary Tushie as Vice Chair, and re -elect Bob Brantly as Secretary for 2010. Motion carried unanimously. 4. Continued Discussion of Business Assistance Policy Issues Dave Olson reviewed the EDC memo and discussed the list of business assistance tools currently available to the City as well as community attributes that we attempt to use when trying to convince businesses to locate in Lakeville. Steve Mielke added that while it is valuable to be aware of the tools available, the bigger question the EDC needs to address is when should those tools be used? What criteria are important to the City and in what circumstances should business assistance be made available? What are the community's goals for development? Economic Development Commission Meeting Minutes January 26, 2010 Chair Matasosky and Comm. Tushie noted that the City needs to establish a "vision" to help gauge when a prospective business would fit into a business assistance policy. Mr. Olson stated that the City of Lakeville doesn't currently have a detailed business assistance policy to help make the decisions of when a business would be eligible for assistance. Chair Matasosky added that assistance should be based on a return on investment analysis including items such as jobs, redevelopment, etc. Comm. Brantly asked the group what's important to the Ci Comm. Schubert noted that it can be difficult to formulate because you need consistency, but you also have to allow for unique circumstances or business situations. It can be a catch twenty -two. Mr. Mielke reviewed the recent ImageTrend land acquisition deal the City completed. The City had a land asset available that was able to be sold to a growing business at a favorable rate in exchange for quality jobs and increased tax base. Mr. Mielke continued by stating that the Life Time Fitness deal was the result of a City Council goal to attract a specific use to L Mr. Olson added that when jobs are the primary reason for business assistance, what are considered quality jobs. $10 per hour? $20 per hour? Comm. Emond responded that the City needs a vision that is able to be flexible and change with the times. The ImageTrend and Life Time Fitness deals are prime examples of thi Mr. Olson asked the group if older projects that were subsidized would qualify in the current environment. Mr. Mielke added that historically growth and development in Lakeville has funded public infrastructure. Development has traditionally paid their own way and is this something that may have to be looked at differently in the current economy. Chair Matasosky suggested that the EDC could possible form a subcommittee to address this issue. Mr. Olson reviewed an example of a business subsidy policy provided by the League of Minnesota Cities. He reviewed several topics in which business assistance could be considered for the group to discuss: 2 Economic Development Commission Meeting Minutes January 26, 2010 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. o The EDC agreed that blight removal is an important goal. To increase the tax base of the City in order to ensure the Tong -term ability of the City to provide adequate services for its residents while lessening the reliance on residential property tax. o The EDC agreed that this statement is too broad and needs be more specific if tax base is to be a goal. To retain local jobs, increase the local job base, and provide diversity in that job base. o Comm. Tushie stated that in most cities higher paying jobs have shifted away from the industrial sector and more OW to office jobs. o Comm. Vlasak asked if the City opens itself to any potential risk of discrimination by establishing benchmarks. o Mr. Olson responded that, it could potentially lead to more subsidies. o Comm. Tushie added that a sub y shouldn't be looked at as a right, but as a s ctive privilege. "but for" test would still need to be considered. To increase "I cal business a nd industrial market potential of the City of Lakeville. Mr. Olson and Mr. Mielke asked if this should focus on emphasizing velopment types the doesn't currently have much of. To encou additional unsubsidized private development in the area, either direct y through secondary "spinoff' development. o Olson noted that this is sometimes referred to as an industry cluster approach. It doesn't always work if you have a concentration of businesses in a similar industry and there is a sudden decline in that industry. To offset increased costs of redevelopment, over and above the costs that a deer would incur in normal development. o The EDC agreed that this is similar to the blight removal point and is an important goal. To accelerate the development process and to achieve development on sites which would not be developed without this assistance. o The EDC discussed that this can be useful for infrastructure costs on challenging sites or priority sites. To meet the following housing related issues: (full text included with EDC packet) 3 Economic Development Commission Meeting Minutes January 26, 2010 o Mr. Olson stated that the Dakota County CDA has developed several affordable housing projects in Lakeville and helps meet some of the demand for Lakeville. o Comm. Tushie added that some type of subsidy is needed for most housing density or apartment developments. o Mr. Mielke stated that the City Council currently has an adopted policy that the City shouldn't use property tax base to spur affordable housing. This is a discussion that should continue and be re- evaluated if the EDC feels that affordable housing is a priority of a business assistance policy. o Comm. Tushie noted that affordable housing isn't stereotypical "subsidized" housing. This is housing for young professionals, educated people in entry level lob that can't afford an apartment or house in Lakeville. Lakeville is extremely short of apartment units and there is a segment of the population that can't live here for a period of their lives. People who have grown up in Lakeville often can't afford to continue to live here. o The EDC concluded that this tem needs more discussion. Comm. Tushie added that corp executive homes and can add to t' Mr. Olson asked the EDC if there were other vale that should be discussed as a part of this ongoing business assistance policy dialogue. Comm. Brantly noted that there should be some measure of the financial strength of a prospective company. Consider Industries that are on the rise versus on the decline. There are advantages of having a business locate their headquarters here instead of just a branch of the company. headquarters are what provide a diversity of ble housing mix in Lakeville. Comm. Matasosky stated t a return on investment test should be performed. Comm. Tushie noted that there are certain categories such as arts and entertainment that are hard to include in a traditional format. Non profits, arts and entertainment venues, professional sports teams and other groups are often valued and desired y_ communities, but they don't necessarily "pay their way". It was the consensus of the EDC to have staff summarize the input received and place this item on the agenda for continued discussion a the February meeting. 5. Review and Discussion of 2008 -2010 Strategic Plan for Economic Development Work Program for 2010. This item was tabled and will be discussed at the February EDC meeting. 4 Economic Development Commission Meeting Minutes January 26, 2010 6. Director's Report Mr. Olson reviewed the Director's Report. Mr. Olson reviewed a Metro -wide housing report and indicated that over the past decade, Lakeville ranked fourth in the total number of housing units built. Mr. Olson also noted that staff is working on the 2009 Economic Development annual report and will present it to the EDC at a future meeting. 7. Adjourn The meeting was adjourned at 6:00 p.m. Respectfully submitted by: Attested to: Adam Kienberger, R. T. Brantly, Secretary Economic Development Specialis 5 Memorandum mNo 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: February 19, 2010 Subject: Presentation of 2009 Annual Report Staff will be presenting the 2009 Economic Development Annual Report at this meeting. A copy of the PowerPoint Presentation is attached. EDC members will be encouraged to ask questions and /or provide comments during or after the presentation. This report was presented to the City Council at their February 16 meeting. Z O F.Ili O P:i n rD O CD et rD O rD e4- N Co Co IV '44 0 0 CD Units Built 0 (1) 0 0 0 a •el vb 0 3 0 06 Co-0 tli CD tie C:0 crt r limmonowsungij td1 L r o CA Z f'I` d f r i rD 1 et CD (1) n O cm CD bd CD o Z n I Co) C I.. 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N.► )53" V 0 CD p Z p 0 cn A) rD L L Memorandum Transportation Life -cycle Housing A6111 No City of Lakeville Community and Economic Development l(� To: Economic Development Commission From: David L. Olson, Community Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: February 19, 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): Continue to participate in the development of transit service and facilities in Lakeville. El Participate in the MAC's Comprehensive Plan implementation for Airlake Airport as it relates to the realignment of Cedar Avenue. O Help the City achieve reasonable and realistic housing goals that balance the need for different housing types for residents. El 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 0 Continue to define and provide the information future businesses and developers need in order to decide to locate in Lakeville. Communication O 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 2. 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, Year2, Year3) 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 1 Memorandum cptr Nof 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: February 19, 2010 Subject: Update on Cedar Avenue Bus Rapid Transit (BRT) Project Attached is a copy of a memo that went to the City Council for their February 16 meeting regarding a Joint Powers Agreement with Dakota County. This agreement addresses the construction of improvements to Cedar Avenue between Dodd Blvd. and 160 Street to facilitate station to station BRT service by the end of 2012. A copy of the PowerPoint presentation that was presented by Dakota County staff at this City Council meeting is also attached. Staff will review the status of this project and answer any questions EDC members may have. The City Council voted unanimously to approve this agreement at this meeting. la(e February 10, 2010 Item No. FEBRUARY 16, 2010 CITY COUNCIL AGENDA ITEM APPROVE JOINT POWERS AGREEMENT WITH DAKOTA COUNTY TRANSPORTATION DEPARTMENT FOR RIGHT -OF -WAY ACQUISITION, HIGHWAY AND TRANSITWAY CONSTRUCTION, SIGNAL CONSTRUCTION, UTILITY RELOCATION AND STREETSCAPE IMPROVEMENTS FOR THE CEDAR AVENUE BUS RAPID TRANSIT CORRIDOR City Improvement Project 08 -12 Proposed Action Staff recommends approval of the attached Joint Powers Agreement with the Dakota County Transportation Department for Right -of -Way Acquisition, Highway and Transitway Construction, Signal Construction, Utility Relocation and Streetscape Improvements for the Cedar Avenue Bus Rapid Transit Corridor, City Improvement Project 08 -12, subject to Apple Valley approving their agreement with similar language. Overview Attached is a Joint Powers Agreement with Dakota County for the funding of the Cedar Avenue Bus Rapid Transit project. Improvements along Cedar Avenue will include the construction of bus shoulder lanes, additional through lanes and access modifications for the project from 160 Street (CR 46) to 181 Street in Lakeville. As part of this project, the traffic signal at Cedar and 162 Street will be removed, and new traffic signals will be installed at Cedar and Griffon Trail /Upper 164 St. and at Glacier Way. Access modifications include a 3/4 intersection at 162 and 167 Streets and right in /right out only at Upper 167 Street. The City will be responsible for maintenance of all aesthetic elements, including trees, shrubs, benches, color concrete pavement, and any additional aesthetic elements. Historically, the County has not planted trees within their right of way. This will be new for a County road improvement and City staff supports this change in policy. The City will also provide all inspection for the aesthetic elements, including storm sewer at no cost to the County, in lieu of paying for contract administration for the transit portion of the project. Pedestrian trail lighting is not part of this project but other funding has been applied for this improvement. The City will be responsible for 2.58% of the construction costs and right -of -way acquisition costs related to the City's portion of the project, estimated at $358,000. The County will front -end the City's share of cost until 2014 when the City has available state aid funding. In addition, the City will share in contract administration and inspection costs for the highway improvements, which is estimated at $100,000. Lakeville's total cost is estimated at $458,000. This project is proposed to be bid sometime this summer with utility work to commence this fall. The construction of the improvements in Lakeville would take place in 2011 and 2012. Kristine Elwood from Dakota County will be present at the City Council meeting to discuss the Agreement and answer any questions. She will also present a PowerPoint similar to that shown at the January 11, 2010 Work Session. Primary Issues to Consider None. Supporting Information oint Powers Agreement cc: David Olson, Community and Economic Development Director Keith H. Nelson, City Engineer Kristine Elwood, Dakota County Transportation Department Financial Impact: $458,000 Budgeted: Yes Source: Year 2013 MSA Funds Related Documents (CIP, ERP, etc.): Notes: W E co .4—) co L- O O CU J ro U O c a) _c a) c0 Q o- c 73 ro CU (0 CU V O C O U N 1 D U CU ca a) ID a) ca LL 0 4- G) 1- 1) f0 _c To cn v c N N co c N O J c1 v v co (i) VJ CO m V) LID N ca LA 1 C9 N Q co 1— C 0 4 J C 0 U T hA C CO 4--J CU a) Q ca U (1) a) a) L (J +J C a) U c6 Q 0 CU CO co a) ca a_ 0 co 0 To Q) co 2 N 0 0 E 0 U 75 0 0 +7+ N X N i— n_ I— CD co U Co a- (1) 7 cu pp c U CD c L D a) +_J I 0 E •L_ 0 cu V) _c D tA o C C 0_ Q E -0 o Q c L_ 1 co co c 4U c aA -o U U U U- 4-.) U JO 1 1 1 TOTAL 1 PC G' L LP l$ 000'961'1$ 000'609'6$ LLL`Lt L. 111' 8£5'6£S 00'19 L'£$ $57,277,911 100.00 1 Ie3o1 006'096S LLetPL6`PS 1 00g‘e9rtS $8,077,277 14.10% 8113 006`096S 16.743.5 $17,704.400 $17.704,480 30.90 elelS F 000'95Z'Z$ 005'00C' LS 000'191'£$ 000'L9Z'£S $7,270,955 12.70% leaepeA 6L9'£86$ 00Z'L99'L$ L 515,554,320 $24,225.199 4230% Project Element 1 Preliminary Engineering Preliminary Design and Environmental Assessment Prelininary Engineering Final Design Preliminary Engineering Right of Way Technical Contract Transitway Right Of Way Acquisition Transitway Construction, Utilities, Streetscape Construction Administration PROJECT TOTALS ti a co 3 CC C en I zt 4. tct CD U) 0 co 0 (1 I U lii RI -0 O N c L) O 2 U) 1 O o L U N S CO N a) _a (n s= i o o V A m O o cC J U Om i) 0- cu r c co co N co- C) c) M t} 6F} u) O U o 0 L c c/) o o U co Q Y 0 c c o 7 O o0 c o 0) ,.r (T5 N ca o a N CO• c c c L 46 O E CZ "O 0 u) s c ca 2 a) CO ca c c n c A .5 E 0 0 0 ca U a) ca Q L c- 0_ 0 c u o O co N 0 0 U 0 a cn ni N i o "0 ca i CI) o f) Q a) c U U O C c c O O O cu N U o O O O U a) cu I- -a i i E E 4 Cl) cc O1 O O Q o (1) 0 0 0 2 C 0 a 0 o U U a) v ca o c L a o o_ a c6 CO N c- o o a. A a 0 o o J a <0 `a 73 .4... a.. o O 03 E E U .9 O 0 m Z E N 4E N E N cu i 4A Q 0 C 0 U a) V) 0 c6 0 O 0_ c 0 0 cu ow 4) c cu c6 0 (J) 0 U V) N> 0 C L U c c6 ca U V a) W co O c6 0 c6 cu 4u O V) C CU E a) 4) 0 a) V) a V) C CO C E 0 CU 0 V C 0 V i V) C 0 V V) CU dJ un c6 C n 0 U E E :c E co O 0_ a) a) O 0 c O W N 73 O W Q O V y- 03 1 cB v� aJ L, V o_ Q i c Q) E w ago c I c O C O o_ N U 0 U O O v O O 0 0 N 1 N 0 O O O O N N L I .11) v •r O tu0 U L U Q O N v r L 8 r, CD I 1 1 Q 1 To 1 1 1 1 LL 00 �t L>- r 00 U Q ca _c U L ID co 4� LL 2 0 co U 0 J L ocu c cu c0 V 0— Q.) U to ca w ai CL 0 c O 00 O m O ca 5 C 0 w 1 a� Q CO CY) 0 N Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: February 19, 2010 Subject: February Director's Report The following is the Director's Report for February of 2010. Building Permit Report City of Lakeville Community and Economic Development The City issued building permits with a total valuation of $2,296,659 in January. This compares to a total valuation of $2,781,080 during the same period last year. The City total valuation of commercial and industrial permits in January was $32,000 which compares to $611,000 during the same period last year. The City also issued permits for six single family homes in January with a total valuation of $1,517,000. This compares to permits for five single family homes with total valuation of $1,527,000 during the same period last year. The City also issued a permit for one detached townhome in January. It should be noted the City has issued permits for an additional ten single family homes through the 19 of February. Development Updates ip 9 �SB U0 The new Casa Nostra Pizzeria Ristorante Italiano has recently opened in Heritage Commons. This new Italian restaurant is located in the same building as Teresa's and has also been issued a license to sell beer and wine. It is a sit down restaurant and also has carry out and delivery. Their web site is www.casanostra- pizzeria.com. The Minnesota School of Business recently received City Council approval of a conditional use permit to open a veterinary technology program in the office building they recently purchased at 17645 Juniper Path. This building is located next door to the first building purchased by the Minnesota School of Business last year where they began offering classes last Fall. The remodeling of the 5,515 square foot area for the Vet Tech program has already commenced. The existing tenants that were in the building when it was purchased by the Minnesota School of Business will remain. Foreclosure Update Attached is the monthly foreclosure summary for Dakota County as provided by the Dakota County CDA. There were a total of 22 Sheriff Sales in Lakeville in January. There were a total of 257 Sheriff Sales in Lakeville in 2009. City Building Inspections staff are currently monitoring 54 damaged and /or vacant homes in the City. Downtown Wayfinding Grant Attached is a memo to the City Administrator describing a grant in the amount of $12,400 from Dakota County. The grant will pay for a Downtown trail sign, pedestrian information kiosk, signage directing traffic to Downtown parking, and Downtown area identification. The attached exhibit shows where this wayfinding signage is being proposed. This grant is being 100% funded by Dakota County Public Health and has no local match requirement. The City Council will be asked to approve a grant agreement at an upcoming regular meeting. Memorandum City of Lakeville Community and Economic Development To: Steven Mielke, City Administrator From: Adam Kienberger, Economic Development Specialist At Copy: David L. Olson, Community Economic Development Director Date: February 19, 2010 Subject: Downtown Lakeville Wayfinding Grant On February 9, 2010 the Dakota County Board approved a $12,400 grant to the City of Lakeville for a Downtown wayfinding system. The grant is being distributed by the Dakota County Public Health Department under their Active Living Mini Grant program. The $12,400 grant will pay for a Downtown trail sign, pedestrian information kiosk, signage directing traffic to Downtown parking, and Downtown area identification. The attached exhibit shows where this wayfinding signage is being proposed. This grant is being 100% funded by Dakota County Public Health and has no local match requirement. The City Council will be asked to approve a grant agreement at an upcoming regular meeting. Staff has met with and will continue to work with the Downtown Lakeville Business Association (DLBA) to help implement the Downtown wayfinding system to make Downtown Lakeville a more pedestrian friendly and efficient business district. The project needs to be substantially completed and funds spent by June 30, 2010 per a forthcoming grant agreement. Dakota County Public Health staff has indicated that there may additional funding available later this spring for similar projects in Lakeville and Dakota County. .A ,L 2 8 c LA N Q\ VD 00 8 ON -P 00 W 00 CA 00 00 c O M C) C T1 cD CAD ce, 0 n 0 2. 2 z O O O O O w A O O N J O� 0 0 O O O O O O N O� 0 0 ON O W W W �1 Q\ 41.1 N LA W N O co J -1 GO -1 Cn ■O N ON O W CJ) co Q\ O O co O O O oo O vO O O �l O 0 0 0 0 0 O\ O O O scoco O N O O\ ca 0 0 0 0 0 C.n Cn Cn 0 0 lv o N O o Ul 0 0 0 �1 0 0 0 [J O N O O Cn 0 �1 ON 000000..000 C O L A C D O U I C D O C L A 000 LA O LA O O O O l.n In W Ji W O N O j 1 to �1 In O CA O N O O O O O O O O O O o 0 0 0 0 0 0 0 0 0 0 =98 0 00 8 0 0 0 o 08 0 0 0 o o =90 0 08 o o 0 0 0 o O o 0 o O 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 coo 0 0 0 0 0 8 0 0 0 0 0 0 0 W O 0000000000000 0 0 0 0 0 o 0 0 =Lao w o o o vo o C C Co C Co 0 C Co o Cn 0 o o *co o 0 0 Co b W o O o 41 0 W O Co A O i.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 sO O O O O O 0 0000.4.-Po-00080000000 N 0. 0 0 Ln 99 W N Cn 00 W W N W co O O O o0 O sO O O O O\ 0 0 0 0 0 0 0 0o O sO O O vO O N O O sO O O O 0 Co 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LFi 8 8 8 8 0 LA 8 0 V 0 0 vi r- to vo Oo c, J J C O 0 0 0 0 0 0000000000000009000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Co 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 z N r� N Cn 0 [xj 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 oO O N O O Cn O O 0 Cobb 0 0 0 0 Cob 0 0 0 0 0 8 0 0 0 8 0 0 �O 0 0. 0 8 CD C M.0 rg ep C eD o C 0 CD a o W O 00 0 N Q.) s0 O in O to O O 0 0 O 0 0 00 O N O O 0 C O O O 0 0 0 0 0 O =coo p O O O O O O �1 A O 00 O N is O O O Ji O 0 O VI 0 0 Vi W O 0 N O O O 0 O O O O O O O O 00000 O O O O O e roo B 7 C Goo 0 0 coo O O O O O O 0 O 'co O O A ut 0 0 w O O w O O O O O O VI A N O O LA LA O O O A O O cn tnV (.0 c a B 5" bo .fi I 0 0� 0 X 5 co vo d 8 cm g o a M co r C CD cn C Fr n E.0 CD O y C CD N O w 0 0 CO N O N O w 0 0 0 0 0 0 O 0 0 0 0 N —1 O C w 0 0 0 O -D O O O sD A O )D 00 0 0 ∎D O O O O O O O O O O A O O O O sD O O O O O O O O O O O O in O O Lri O O O O O O O O O O O O O O O O O O W J J O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O C O C C O C O O C C O O O C O p 'co C O C C O C O C O C O C O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N 0 0 0 0 0 0 vi N w 0 0 N W W W W W t,) t0 J W W W W O O 10 O O O O ‘.D O t0 O 00 O O O O t0 t0 0 0 0 0 0 0 �l Q\ O O O vD O O 0 A n 0 0 c Vi 0 0 0 0 0 CA CA 0 0 0 0 0 0 0 t� 0 0 0 to O O 0 O O t/i 000000000000000000000C N 7L'ul 00 O, 00 00 00 C31 1.11 LA A O cal 0 0 c> O O O O c-- O O O O O O O O O O O O O O O O O O O O O O Vt O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 00000000000 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O Co O O O O O O O O b O O O O O b O O O O O coo O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 0 cn O O O O O O O O O c ir l S c n C a CD QC 0 M Cn O f y (A 0. c c y G. 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V VI 0 0 0 0 0 0 0 0 0 J 0 0 0 0 0 0 0 N N O\ Co J O O 00 O- O O O O O O O C O 0 0 0 O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 e 0 00 J 00 00 0 m O O O O O O O O O O O O Finance and Commerce Developers, cities weigh in on proposed TIF changes Page 1 of 2 FINANCE COMMERCE Business News February 18, 2010 Developers, cities weigh in on proposed TIF changes by Brian Johnson Staff Writer Redevelopment of Oakdale Mall on at least one wish list Oakdale officials are on a mission to redevelop the Oakdale Mall. For years, the 26- year -old mall has struggled with high vacancy, uninterested out -of -town ownership, and maintenance problems. The mere mention of the underwhelming property at Interstate 694 and North 10th Street elicits an audible sigh of exasperation from the city's administrator, Craig Waldron. Things are looking up, however. Earlier this year, the city signed a purchase agreement to acquire the now vacant property and is working with Ryan Companies and Wellington Management to redevelop the site with a mix of commercial, office and residential uses. Waldron says the city is "very close" to seeing the $50 million redevelopment become reality, but it needs some help. The city is asking the state Legislature to help close the deal by tweaking the state's tax increment finance laws. Waldron says the proposed change would allow the city to extend an existing TIF district across the street from the Oakdale Mall site. The extension could close a $2.5 million funding gap to pay for project related public infrastructure improvements, the city says. "If we can just extend that TIF district, we know we are there and we can pull the trigger and get that infrastructure moving immediately," Waldron said in a phone interview. Waldron was among the city officials, developer and others who testified at a House Taxes Committee "open forum" Tuesday. The committee is exploring ways to move construction projects forward by allowing for more flexibility in the state's tax increment finance law. Committee Chair Ann Lenczewski, DFL- Bloomington, said the goal is to "put people to work immediately" on jobs that have been stuck in neutral. More flexible TIF parameters are part of a larger House construction jobs bill authored by Lenczewski. The bill also includes a variety of tax credits, expanded local bonding authority and other construction tools. One proposal, for example, would allow cities to expand the scope of economic development TIF districts to include commercial and office projects, and another would expand cities' authority to use "excess or surplus" increments on new projects. Both of the changes would be temporary and would pertain only to projects that are ready to go by July 1, 2011. In general, officials from Apple Valley, Brooklyn Park, Oakdale and other municipalities spoke favorably about how such changes could spark new construction, but others suggested that different remedies such as loan guarantees to close financing gaps would be more effective. Eagan Mayor Mike Maguire told the committee that the city is "on the cusp" of being able to move forward with development of two projects a multifamily housing project and a pair of hotels in the city's Cedar Grove redevelopment area. However, the projects face a financing gap and are already seven years into a 25 -year tax increment finance district. Maguire said if the state would allow the city to "reset" the clock on the district, "We would be in a position where we could loosen up and make the final investments to try to close that gap and move those projects forward." Apple Valley community development director Bruce Nordquist testified that more flexibility for office and commercial uses in TIF districts "would be the quickest way to generate development and generate jobs." Amy Baldwin, a business developer with Brooklyn Park, said the excess increment provision would help grease the skids for medical device manufacturer Accellent's proposed $33 million, 200,000- square -foot expansion project. The project team says the expansion would generate 200 construction jobs and 125 permanent jobs. "The potential use of surplus existing TIF funds is what is of most interest for that particular project," Baldwin said in a phone interview. Facing the financing gap http: /www. finance- commerce.com/print.cfm ?recID =15195 02/18/2010 Finance and Commerce Developers, cities weigh in on proposed TIF changes Page 2 of 2 John Herman, a partner with Faegre Benson's real estate practice, said the most helpful of the proposed TIF changes would be to allow "the type of developments that are now precluded in economic development districts." He suggested that there may be situations where some tax increment could be used to bridge financing gaps for certain projects. One idea he offered: creation of a loan guarantee fund backed by tax increments on the project. Rick Collins of Ryan Companies talked about two projects his company is involved with in Minneapolis: a 196 -unit, $39 million housing project on the Hiawatha LRT corridor; and a $35 million office- restaurant parking project in Uptown. Both projects have strong market support, but face a financing gap, he said. In his view, a loan guarantee program would help move those projects forward. "The common denominator is the inability to get construction financing," Collins said. "TIF won't work unless you can get a project built, and we can't get these projects out of the ground. The most valuable tool is some form of limited loan guarantee." But loan guarantees are a hard sell this year as the state tries to deal with a $1.2 billion budget deficit. The governor has opposed loan guarantees. A Senate construction jobs bill had a loan guarantee provision last year, but it was taken out of this year's version. Lenczewski said the proposed TIF changes are appealing in the state's current economic situation because they amount to "zeroes on the spreadsheet." All of which sounds good to Waldron. The long -time Oakdale city administrator says an extension of the existing TIF district in Oakdale could allow Oakdale Mall redevelopment to begin this summer or early fall. He said the project could create 80 to 100 construction jobs right away. "We understand that the Legislature's cupboard is bare and they want to do something in terms of jobs, but the money is not there," he added. "But with a few strokes of a pen, we can step up and do something locally without it really impacting the state at all." Copyright 2010 Finance and Commerce All Rights Reserved U.S. Trust Building Suite 100, Minneapolis, MN 55402 (612) 333 -4244 http: /www. finance- commerce.com/print.cfm ?recID =15195 02/18/2010 CDA Loan Modification Report Cy -M "E Dakota County OWNERSHIP Community Development Agency Pt To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: February 18, 2010 Re: Foreclosure Update Foreclosure Counseling Event On Thursday, February 4, CDA staff held Walk -in Foreclosure Counseling for homeowners at the CDA office building in Eagan from 4 to 7 p.m. Past events were known as Foreclosure Counseling and Information Workshops. Despite the poor weather conditions, many households attended the event. Three CDA housing counselors were available and met one -on -one with the homeowners to discuss their foreclosure situation and offer information and advice. More Walk-in Foreclosure Counseling events will be planned in 2010. HUD and the U.S. Department of the Treasury recently announced the results of the Making Home Affordable program through December 2009. Key findings were as follows: 902,620 borrowers received trial modifications Of the 853,969 active modifications, 66,465 were permanent and an additional 46,056 only needed borrower acceptance 100 percent of permanent modifications reduced interest rates; 43.2 percent provided term extensions and 26.6 percent included principal forbearance Permanent modifications reduced the median monthly mortgage payment by $516 Borrowers in active trial and permanent modifications saved more than $1.5 billion Participating servicers increased from 63 to 102 in the fourth quarter More information may be found at hud.gov and the complete report can be found at http:// financialstability .gov /docs /report.pdf. Please note: January 2010 Sheriff Sale numbers were based on property owner postal address. Next month's e-news may show slightly adjusted numbers after municipality address is verified. In The News c DA Dakota Co unty Communi Development Agency Squatters may be the latest offshoot of the foreclosure crisis. HOM E O W N E RS H I I' cot/ucectiarz Dakota County Stats January 2010 of Sheriff Sales in January 194 (compared to 141 in January 2009) of Notices of Pendency Filed in January 285 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 2010 Foreclosures and Notice of Pendency layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel or Mary Hagerman with the Office of GIS at (952) 891 -7081. Provided in this PDF file are a few notable foreclosure articles that were published in the last month. Among the points of interest Nationally, more than 2.8 million households received a foreclosure related notice in 2009, an increase of 21 percent over 2008. Between 3 and 3.5 million homes are expected to enter some phase of foreclosure in 2010. An article on the CDA's foreclosure clean -up efforts through the Neighborhood Stabilization Program. A local article on the federal Making Home Affordable program. As of December, 1,237 metro -area borrowers received permanent modifications, a number that represents 9.2 percent of the active trial and permanent modifications in the metro. Ripples from the long- running foreclosure crisis are spreading through the U.S. economy affecting even those who might have been expected to benefit, including renters and landlords. The article, covering a hearing that took place in Minneapolis at the end of January, also touches on local funding from the Neighborhood Stabilization Program. If you have any other concerns, please call me at (651) 675 -4464 or send me an e- mail at drognessedakotacda.state.mn.us. C a) Q E O a) Q) o c 0 a 0 Q u C all; N s H O N O N C1 0 Z. 0.' 4 Itt N M M w 0. 0 4 O 0. fA M IA O. 11'1 N N W N 0 bA L. u. N M en tILO RI s 0 s. d N N F. J M M O O 0) 0 cc M N 0' N N .O MIN J?? Cr 0 E 3 0) d N 0 E r4 d Z d L V N 0 L d 3 0 d O �L O V d r N V a a L N N 1 d .0 E C C V E L H a O 01 N 0 C o 0 d o 1 N 0 ir C a 0 E N a .0 I) t N 0 0 m 0 ttl 0 E 0 C w 0 E 1 0 u- 0 ry 0 td U C1• Q C E 0 a v a ate+ U C O r5 O Q U• O o cei ett ri O O N O u O Z y be 4 0 co O. M M O' Ln In h m N I ao W N N N 0 00 E LI. N N N v7 ao y.l 2 M 1,) N N N cm to Z O C7 O Ln J co o O aa) O 0 O. N N N N In co r4 C N C tel a) L r. m O CI- O u Z c E -0 o in L H w D u c d L y 7 a 0 C O W C C L C n U w U Ln Id 0 0 u c O u O O O o c- c IA L as c 0 al T5 c E U7, o U a) L O N c p L es O y 0 '3 V) co c C et: C u c L d o E ed a C b4 a) L d CLO O u C a) td U -0 d Z cam. 0 i) "0 A co o Ca) c It L 0 a. N N O E O 0) N u Z z ;E N ca O d 5 Z v) N Foreclosures set a grim record in 2009 Real estate Foreclosures set a grim record in 2009 2.8 million households were faced with actions, number expected to rise The Associated Press updated 7:09 a.m. CT,Thurs., Jan. 14, 2010 MIAMI A record 2.8 million households were threatened with foreclosure last year, and that number is expected to rise this year as more unemployed and cash strapped homeowners fall behind on their mortgages. The number of households that received a foreclosure related notice rose 21 percent from 2008, RealtyTrac Inc. reported Thursday. One in 45 homes were sent a filing, which includes default notices, scheduled foreclosure auctions and bank repossessions. In December, more than 349,000 households, or one in 366 homes, were hit with a foreclosure related notice. That represents a 14 percent spike from November and a 15 percent jump from December 2008. Banks repossessed more than 92,000 homes, up 19 percent from November. That increase was likely due to lenders working to clear their books at the end of the year, RealtyTrac said. Stemming the tide of foreclosures is an important step for the real estate market and the economy to recover. Because foreclosures are usually sold at heavy discounts they can lower the value of surrounding properties. Cities lose property tax dollars from empty foreclosures and declining home values, straining local economies. Home prices have stabilized in some cities, but are still down 30 percent nationally from mid -2006. The foreclosure crisis isn't letting up. Between 3 million and 3.5 million homes are expected to enter some phase of foreclosure this year, said Rick Sharga, senior vice president of Irvine, Calif. -based RealtyTrac, which began tracking the data five years ago. High foreclosures forced the federal government and several states to come up with plans to prevent or delay foreclosures to help troubled borrowers. "It was bad, but it could have been much worse, and it probably should have been worse," Sharga said. One plan intended to help homeowners is the Obama administration's loan modification program known as Making Home Affordable. Lenders participating in the program have offered trial loan modifications to 760,000 eligible borrowers since it was launched in March. A loan modification changes the terms of the loan, such as lowering the interest rate, to make the monthly payments more affordable. As of November, just 31,000 of them had been made permanent. Nearly the same number had dropped out of the program or were found to be ineligible. The Treasury Department will release updated figures Friday. Print Powered By Page 1 of 2 Dynamics http: /www.msnbc.msn.com/id/ 34847676 /ns/ business real_estate /print/ 1 /displaymode/ 1098/ 1/14/2010 Foreclosures set a grim record in 2009 Real estate Economic issues, such as unemployment or reduced income, are expected to be the main catalysts for foreclosures this year. Homeowners with good credit who took out conventional, fixed -rate loans are the fastest growing group of foreclosures. The Mortgage Bankers Association on Wednesday recommended changes to the government's program to account for borrowers who've lost their jobs. The program, for example, should include a suspension of payments as the first step for borrowers with a temporary loss of income. The government also should refrain from "endless incremental program changes," the trade association said. Since April 2009, there have been nine instances where new program requirements were released, and more than 90 clarifications for new or revised forms, reporting changes and policies. The changes forced mortgage companies to implement new procedures and retrain employees, taking away time that could be spent helping borrowers. The same three states that led the nation in foreclosure rate in December also posted the highest rates for the entire year: Nevada, Arizona and Florida. More than 10 percent of Nevada housing units received at least one foreclosure filing in 2009, with Florida and Arizona following with about 6 percent each. The other states ranked in the top 10 for the year were California, Utah, Idaho, Georgia, Michigan, Illinois, and Colorado. 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. URL: http: /www.msnbc.msn. com/id/34847676/ns/business-realestate/ MSN Privacy Legal© 2010 MSNBC.com Print Powered By Page 2 of 2 Forrnat©ynamics" http: /www.msnbc.msn. com /id/ 34847676 /ns/ business real_estate /print/ 1 /displaymode/ 1098/ 1/14/2010 http://www.startribune.com/loca1/80513157.html?page=5&c=y rTribune.com Page 1 of 5 Meet your new neighbors, the Squatters Brian Peterson, Star Tribune Coon Rapids housing inspector Leya Drabczak visited the house almost weekly for more than six months. The woman who lived there never answered the door even when she was home. "She had furniture and plants," Drabczak said. "She had an 'ab- ductor' exercise machine." What the woman didn't have was the legal right to live there. Housing officials say such squatters are the latest offshoot of the foreclosure crisis, leaving thousands of empty homes ripe for illegal occupancy. In the Coon Rapids case, the housing inspector lacked proof that would allow her to remove the squatter. The former owner of the $195,500 house abandoned it, let it slip into foreclosure and returned to Nigeria. The Texas bank that technically owned the property didn't return Drabczak's calls. "If there is no imminent danger, I don't have the right to go in," she explained. The six -month standoff ended when Coon Rapids officials finally persuaded Xcel Energy to cut off electricity because the woman's use of six space heaters to stay warm represented a safety threat. The shutoff allowed city officials to apply a new ordinance aimed at controlling squatters. They cut off the house's water flushing the woman out, so to speak. That episode and others like it arise from a swelling list of vacant houses. In the past five years, inventories of empty buildings have exploded in Minneapolis and St. Paul, growing 300 percent or more in each city. Surrounding suburbs do not report dramatic growth of empty buildings. Indeed, in some cases, such as Coon Rapids, aggressive tracking of abandoned properties and recent tweaks to city ordinances have helped reduce the inventory. Housing officials in the metro area don't track illegal occupancy. Some say they haven't noticed an uptick in squatters. But several housing officials acknowledged that record numbers of failing mortgages have created opportunities for illegal occupancy http://www.startribune.com/templates/fdcp?1262801675711 Print Powered By 11 1/6/2010 http://www.startribune.com/loca1/80513157.html?page=5&c=y StarTribunecom that are unique and hard to monitor. For example, unemployment bred by the recession now forces foreclosures in middle class and upscale neighborhoods, where houses cost $200,000 and up. This leaves abandoned buildings and occasionally squatters, copper thieves and vandals in places they rarely, if ever, appeared before. Stripped but lived in In St. Paul, you can see it in a custom- built, 2,600- square -foot house near Battle Creek Park. Officially, the twice foreclosed house resides on the city's roll of vacant properties. From the outside, it looks splendid, a beautiful combination of blond brickwork, glass blocks and fresh paint. But St. Paul code enforcement inspector Rich Singerhouse recently wandered among blankets and others bits of bedding that lay in snarled lumps in the once handsome split level. The house had been stripped of cabinets, carpeting, copper and kitchen appliances. But ashes from freshly burned logs collected in one of the house's two fireplaces and fresh wood awaited ignition in the other. Amid the mess, a sofa overlooked the sprawling backyard, where deer regularly roam. Someone had stored cans of soup, fresh potatoes and a bag of corn flakes in the gutted kitchen. And although no one appeared to have used the weight machine or tanning bed left in the exercise room, someone looked to have washed dishes in the sinks of the once elegant master bath. In St. Paul, the inventory of abandoned buildings mostly residences grew from 372 at the end of 2004 to 2,007 at the end of 2008. As of Dec. 9, St. Paul listed 1,609 vacant buildings on its website, a decrease from November. All but 53 were residential properties. Figures in Minneapolis, which records vacant building in a more narrow way than St. Paul, showed a 300 percent growth in registered vacant buildings from 286 at the end of 2004 to 857 at the end of 2008. Through the first nine months of 2009, Minneapolis reported 824 vacant buildings. As the economic aftershock of mortgage defaults hits commercial and mainstream borrowers, Singerhouse now finds himself and his inspectors pasting blue vacant building notices in "nice areas," such as Como Park and Macalester Groveland. Farther north in Coon Rapids, Drabczak recounted the story of a man who died and http://www.startribune.corn/templates/fdcp?1262801675711 Print Powered By Page 2 of 5 For t Dynamics 1/6/2010 http://www.startribune.com/loca1/80513157.html?page=5&c=y StarTribu ne,com whose $160,000 twin home was occupied by an alleged squatter. "I had lengthy conversations with him," Drabczak said. "He said he had the owner's permission to be there. I called the bank, but I ended up in voice mail purgatory." It took many months, but finally a utility cutoff in October forced the man to move. Tough to track Although issues of safety and sanitation abound, accurately tracking illegal occupants of abandoned homes in this recession may be impossible. "Anecdotally, we're not seeing many squatters during the day," said Grant Wilson, Minneapolis manager of problem properties. "Sometimes, we get a complaint of a board peeled off [a city- secured vacant home]." Still, Wilson admits empty homes can easily slip under the regulatory radar. "If the grass is cut and there's not trash collecting in the yard and we're not getting nuisance complaints, we wouldn't know about it." St. Paul prides itself on having the area's best vacant buildings management program. But it can't come close to tracking the actual inventory of empty dwellings, said Steve Magner, the city's vacant building manager. "My perception from being out in the field is that there are at least half again as many properties unoccupied as we have on our list and maybe more," Magner said. "I can almost guarantee you that there are at least 1,000 homes available to squat in." In one case, Singerhouse said, an entrepreneurial resident of a foreclosed six unit building began to collect and pocket rent from other tenants after the landlord left. Despite examples like that and the free riders in Coon Rapids, squatting is almost always a lifestyle of last resort, said Monica Nilsson, director of St. Stephen's Street Outreach Program, which helps the homeless. "Breaking into somebody's house is breaking the law," she said. "Most people don't want to do that. Most people will live in their cars until they can't do that anymore." A "domestic situation" left Maureen Meschke homeless. The 55- year -old woman tried to live in a friend's foreclosed house on Clinton Avenue in Minneapolis after her friend moved out. "She gave me the keys," Meschke said. Troy Sanders, the Realtor trying to sell the bank -owned property, said he asked Meschke to leave three times. With the property weeks beyond the redemption period in which Meschke's friend could http://www.startribune.com/templates/fdcp?1262801675711 Page 3 of 5 Print Powered By 01111 Farr p 1/6/2010 http:// www. startribune .com/local/80513157.html ?page =5 &c=y SthrTribu ne,com Page 4 of 5 legally recover it from the lender, Sanders finally changed the locks. While numbers on squatters are sketchy, no one denies that foreclosures are forcing more people from their homes. Hennepin County eviction notices jumped from an average of 64 a month in 2000 to 91 a month in 2008, the sheriffs office said. In Ramsey County, the sheriffs office issued an average of 83 eviction notices a month in 2000 and 117 a month in 2008. She won't go Barbara Byrd refuses to leave her foreclosed duplex in Brooklyn Park. She thinks she was the victim of predatory lending and says her mortgage company did not bargain in good faith to modify her payments to an affordable level before foreclosing on her home loan. As a result, Byrd now squats in the home where she has lived for a decade. A judge told her nearly two months ago that she had to leave. The 50- year -old security guard has sued her mortgage company, EMS, and is working with the Poor People's Economic Human Rights Campaign. "I'm just not going to walk away and leave it empty," she said. "One day, I know the sheriff will come with a notice that I have to be out in 24 hours. If that happens, we'll sit in. Arrest is the risk I have to take." While Byrd battles actively, officials in the metro area say indifferent owners, especially out -of -town banks, make it easier for squatters. "We had a situation this year where the homeowner was in jail," said Coon Rapids neighborhood coordinator Kristin DeGrande. "The people living in his house were his friends. The mortgage company was not trying to get them out. They moved out when we cut off the water." Turned out the squatters were growing marijuana, DeGrande said. They left when they could no longer water the plants. True squatters, Singerhouse explained, don't want to be found or caught. Recently, he said, "I came in the front door of [an abandoned house] and the people ran out the back. I found a little nest by a heater in one room." Most communities have a social service network to help squatters find another place to live. Nilsson of St. Stephen's homeless outreach says those resources fall far short. Meanwhile, an inability to count illegal occupants may understate the squatting problem. "If you show up with a grocery cart and a tent and start a bonfire, the neighbors are http://www.startribune.comitemplates/fdcp?1262801675711 Print Powered By L rd Format©ynamics` 1/6/2010 http://www.startribune.com/loca1/80513157.html?page=5&c=y StarTribu ne,com probably going to call to say someone is breaking into the house next door," Magner said. "But if you pull up in a car and go through the front door, people may think you bought or rented the place." Jim Spencer 612- 673 -4029 http://www.startribune.com/templates/fdcp?1262801675711 Print Powered By Page 5 of 5 t Dna 1/6/2010 http://www.startribune.com/local/south/81938807.html?page=2&c=y StarTribu necom Page 1 of 2 Dakota County cleaning up mess left by foreclosure crisis It was the nightmare on Elm Street. The vacant, boarded -up house, stripped of its siding, was on display for anyone who traveled the main road through Farmington. That's not the case anymore. The house is one of 17 properties purchased and demolished by the Dakota County Community Development Agency (CDA) in an effort to clean up foreclosed properties across the county with federal funding from the Neighborhood Stabilization Program. So far, with nearly $3.7 million, the CDA has found solutions for about 60 properties in Dakota County some purchased by homeowners with no- interest loans, some demolished and some to be remodeled and used as affordable housing. But there are still many more foreclosed houses. There were 1,862 foreclosures in Dakota County in 2009, down from a peak of 2,063 in 2008 but still the second highest number ever. "The amount of [Neighborhood Stabilization Program] money here, compared to the size of the problem, is still relatively small," said Mark Ulfers, executive director of the CDA. Yet even demolishing or cleaning up individual homes can make a dramatic difference for nearby property values and neighborhoods, he said. "These homes can be a site for vandalism and for infestation and for problems that can creep out beyond the specific properties to the whole block and neighborhood," Ulfers said. "It really takes a blighted home out of a neighborhood and makes it better for the entire area." In Farmington, houses demolished by the CDA were all older homes in the downtown area. The house on Elm Street and another on Main Street were in high visibility spots, said Tina Hansmeier, the city's economic development specialist. Neighbors told city employees that they were happy not to see the eyesores there anymore, Hansmeier said. "It's nice to see this program help in that way." The CDA is forming a land bank with the http://www.startribune.com/templates/fdcp?1264003296969 Print Powered By 1/20/2010 http:// www. startribune .com /local/south/81938807.html ?page =2 &c =y Page 2 of 2 StarTribu ne.com demolished properties, with the idea of selling the land in the future for redevelopment that will include housing that's affordable for families with an income limited to 120 percent of the median in the county about $97,100 for a family of four. Properties that are being remodeled, including one single- family house in Lakeville, will become CDA rental housing for residents whose incomes are limited to 50 percent of median county income. The funding also helped the CDA get new buyers into foreclosed homes with the Silver Lining Loan Program, which offered no- interest loans of up to $15,000 to people who met income limits and purchased foreclosed properties in certain areas. Through that program, eligible buyers have snapped up 39 foreclosed houses around the county, from Apple Valley to Inver Grove Heights to Hastings. The appraised value of those properties added up to more than $5.6 million. Katie Humphrey 952- 882 -9056 http://www.startribune.com/templates/fdcp?1264003296969 Print Powered By 1/20/2010 Easing the squeeze on mortgage relief TwinCities.com TwinCities•com Easing the squeeze on mortgage relief Borrowers hoping to modify mortgage terms see the pace of approvals pick up slightly, but the federal program remains mired in finger pointing. By Christopher Snowbeck csnowbeck @pioneerpress.com Updated: 01/15/2010 10:09:32 PM CST Struggling homeowners in the Twin Cities are getting federal help to modify mortgage terms at a faster pace than the national average, according to numbers released Friday. But counselors working with borrowers here say a great many homeowners still aren't getting what they n eed from the Home Affordable Modification Program, which the government created last spring. We see folks every day that are being denied permanent modifications who we truly believe meet the requirements,' said Michelle Vojacek, program coordinator for the mortgage foreclosure prevention program at the city of St. Paul. As for an overall assessment of the federal program, Vojacek added: 'It's too early to tell.' For several months, critics of the federal program have been saying that too many homeowners offered trial modifications have failed to receive permanent changes to loan terms from the companies that service their mortgages. Those mortgage companies are offered incentives and guidelines by the government for modifying mortgages either reducing interest rates, extending the term of loans or cutting the principle amount owed. In many cases, a lack of completed paperwork has prevented borrowers from receiving permanent relief a problem that borrowers and banks have blamed on one another. The government said Friday that more than 66,000 borrowers had received permanent loan modifications as of December, more than twice the number in place as of November. Those permanent modifications, however, represented just 7.8 percent of the 853,696 active trial and permanent m odifications created as of December through the program, according to numbers released Friday. In the Twin Cities, 1,237 borrowers had received permanent modifications through the program as of December. That represents about 9.2 percent of the 13,373 active trial and permanent modifications in the metro. "We would like to see that percentage be higher," said Julie Gugin, executive director of the Home Ownership Center of Minnesota, a St. Paul -based group that coordinates a statewide network of foreclosure prevention counselors. "We will continue to work with lenders and servicers, and advise consumers to continue to pursue this option. Persistence is the key." The government has been pressuring mortgage service companies to do a better job implementing the mortgage program. In a statement released Friday, Wells Fargo Bank one of the largest mortgage companies in Minnesota said it had initiated or completed three modifications for every foreclosure sale on owner- occupied properties during the fourth quarter. All borrowers who have received permanent modifications have seen reductions in monthly p http://www.twincities.com/business/ci_14204000 Print Powered By Page 1 of 2 1/19/2010 Easing the squeeze on mortgage relief TwinCities.com TwinCities.com ayments by way of interest rate reductions, the government said Friday. Nearly half of those borrowers also have seen the term of their loans extended, while others have benefitted from principal forbearance, the government said. As part of the Home Affordable Modification Program, more than 850,000 homeowners have had a median payment reduction exceeding $500, the government said Friday. "Treasury is committed to working with servicers and borrowers to sustain this improved pace," said Phyllis Caldwell, the chief of the homeownership preservation office at the U.S. Department of the Treasury, in a statement. Christopher Snowbeck can be reached at 651 -228- 5479. http://www.twincities.com/business/ci_14204000 Print Powered By Page 2 of 2 1/19/2010 Finance and Commerce No silver lining yet in foreclosure crisis Page 1 of 2 FINANCE COMMERCE Business News January 24, 2010 No silver lining yet in foreclosure crisis by Anna Pratt Special to Finance Commerce It isn't just about people losing their homes. Ripples from the long- running foreclosure crisis, experts told an audience in Minneapolis on Saturday, are spreading throughout the U.S. economy, affecting even those who, intuitively, might be expected to benefit. "One would think the silver lining is lower prices for renters, "said U.S. Representative Maxine Waters, D- Calif., who led the hearing on behalf of the House Subcommittee on Housing and Community Opportunity. But she added that the falling rates of rent can't keep up with the ever growing number of foreclosures, which in Hennepin County rose 800 percent from 2002 to 2008. "There are devastated neighborhoods all across the country," said Waters, one of numerous speakers at a Congressional subcommittee hearing on various government programs addressing the problem. More than a dozen elected representatives, government officials, nonprofit workers and private citizens testified during the hearing, at Minneapolis' Central Library. Much of the testimony centered on the pros and cons of the Neighborhood Stabilization Program (NSP), a national anti foreclosure program established through the Housing and Economic Recovery Act of 2008. NSP enables states, local governments and nonprofits to purchase and redevelop foreclosed and abandoned homes. The Department of Housing and Urban Development (HUD) recently announced that $2 billion was authorized for NSP through the American Recovery and Reinvestment Act (ARRA) of 2009. Minneapolis, Hennepin County and Brooklyn Park are jointly receiving nearly $19.5 million for NSP, according to information from Waters. St. Paul received $18 million, the Minneapolis Public Housing and Economic Authority (MPHA) received $18.2 million for "shovel ready" public housing repair projects, while Hennepin County and the city of Minneapolis received $6.5 million specificaly to deal with the increase in homelessness. A prepared statement from Waters adds that in December 2009, she led a group of Congressional Black Caucus lawmakers in securing an additional $1 billion for NSP phase three, under the Wall Street Reform and Consumer Protection Act of 2009, which has has passed the House of Representatives but is pending in the Senate, it reads. There was a consensus among panelists that the recovery efforts haven't helped as quickly as many had hoped, and that some government restrictions are too prohibitive to homebuyers. Hennepin County Commissioner Gail Dorfman voiced concern about meeting the Sept. 30 deadline that the county and others have to acquire properties through NSP. While they're able to easily identify families who need housing, when it comes to acquiring and rehabbing properties, "We're scrambling," Dorfman said. The explanation for that, according to ccording to Tom Streitz, director of housing policy and development for the Minneapolis Department of Community Planning and Economic Development, is that NSP homebuyers have to go through a bunch of hoops: They're competing with investors who are offering cash for properties, many people won't sell homes for a discount (an NSP requirement) and sellers also don't want to endure the month -long wait on NSP's required environmental assessments. Many of the investors who are snatching up properties live elsewhere and don't maintain the homes: "We have people who are sending their rent checks to Puerto Rico," Streitz said. "They have no one to contact." The rental market is being thrown off kilter, as well. As anecdotal evidence of that, Marion Anderson talked about how he and other renters of a North Minneapolis fourplex apartment were abandoned by their landlord after the building went into foreclosure. Another witness, Christina Lauden, who lives in Section 8 affordable housing, is a single parent who's trying to provide for her two children. Lauden, who is also coping with disabilities related to a car accident, said she's glad to finally have a place she can afford, but noted that she was on a waiting list for six years. Richard Amos, a staffer at St. Stephen's Human Services, a Minneapolis shelter which works to counteract homelessness, stressed that it saves taxpayers to get people into permanent housing. 1 Mark Ireland, a staff attorney for the St. Paul -based Housing Preservation Project, a nonprofit that strives to increase affordable housing, urged legislators to invest in rental properties, expand the Section 8 voucher system and create more affordable housing. "A lot of nonprofits want to do that, but we need access to capital," he said. "We need to bring houses into affordable programs in areas http /www. finance- commerce.com/print.cfin ?recID =14876 1/25/2010 Finance and Commerce No silver lining yet in foreclosure crisis Page 2 of 2 that are close to jobs and transit. We need to raise the standard of living for renters." Further, he said, "There's the issue of race. No one talks much about the disproportionate impact of the economic crisis on communities of color. It's a conversation that's long overdue in Minnesota, the Midwest and the country." Congressman Keith Ellison, D- Minn., who characterized the day's panel discussion as a sort of listening session for legislators, said that the priority is to "smooth out problems with NSP so that NSP buyers are on equal footing with the cash buyer." Waters agreed, saying, "The investors have a leg up. They're paying less and not rehabbing homes or doing shabby work. We need to deal with that and make it cost- effective for homeowners to get the homes and not investors exploiting them." Copyright 2010 Finance and Commerce All Rights Reserved U.S. Trust Building Suite 100, Minneapolis, MN 55402 (612) 333 -4244 http: /www. finance- commerce.com/print.cfm ?recID =14876 1/25/2010