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03-23-10
City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, March 23,201o, 4:30 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN Call meeting to order 2. Approve February 23, 2010 meeting minutes 3. Continued Discussion on Business Assistance Policy 4. Review and Discussion of 2008 -2010 Strategic Plan for Economic Development Work Program for 2010 5. Director's Report 6. Adjourn Attachments: February 2010 Building Permit Report February 2010 Foreclosure Report from the Dakota County CDA Press Release, MJSP Grant Funds Training for Hundreds of ConAgra Employees Minnesota Department of Employment and Economic Development, March 15, 2010 Press Release, State jobless rate steady at 7.3 percent in February Minnesota Department of Employment, March 18, 2010 A good life as a village druggist Dakota County Tribune Business Weekly, March 18, 2010 ism No, a City of Lakeville Economic Development Commission Meeting Minutes February 23, 2010 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Tushie, Vlasak, Schubert, Emond, Brantly, Starfield, Ex- officio member Mayor Holly Dahl, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser. Members Absent: Smith, Longie. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist. 1. Call Meeting to Order 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 January 26, 2010 Meeting Minutes Motion 10.03 Comms. Tushie / Emond moved to approve the minutes of the January 26, 2010 meeting as presented. Motion carried unanimously. 3. Presentation of the 2009 Annual Report on Economic Development Dave Olson reviewed the 2009 Annual Report for Economic Development. Comm. Emond asked what effect the slowdown in development has had on City building department staff. Mr. Olson responded that the inspections department staffing level is down by approximately one - third. Several Commissioners had to leave the meeting early and a quorum was no longer present at 5:40 p.m. Review and discussion continued, but no formal actions were taken by the EDC after this time. 4. Review and Discussion of 2008 -2010 Strategic Plan for Economic Development Work Program for 2010. This item was tabled again and will be discussed at the March EDC meeting. Economic Development Commission Meeting Minutes February 23, 2010 5. Presentation of the Proposed Cedar Avenue Bus Rapid Transit (BRT) Improvement Project Mr. Olson reviewed the Proposed Cedar Avenue Bus Rapid Transit (BRT) Improvement Project presentation. Vice Chair Tushie asked about how the Cedar Avenue plans met the design guidelines in the Lakeville Corridor and Gateway Design Study. Mr. Olson noted that because of the posted speed limits on" Cedar Avenue in Lakeville, MNDOT does not allow trees in the median... Vice Chair Tushie added that native grasses would be a goo for the medians of the project area as they would be both aestheticaiiy pleasing 6W'" w maintenance. He requested that staff inquire with Dakota' County about utilit this type of planting for the Cedar Avenue medians within ;the project area. 6. Director's Report The Director's Report was included;4n.the EDC packet and was not discussed during the meeting. 7. Adjourn Vice Chair Tushie adjoumed=the meetingnat 6:25 p.m. Respectfully subm�t#d by w „ r Attested to: Economic 3evelopm pecialist R. T. Brantly, Secretary 2 _em No. City of Lakeville ' Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: March 19, 2010 Subject: Continued Discussion of the City's Policy on Business Assistance The EDC discussed this issue at the November 2009 meeting and again at the January 26 meeting. Copies of the applicable section of the meeting minutes from both meetings are attached for your reference. As part of the discussion at the January meeting, EDC members discussed and provided comments on a sample criteria for business assistance as developed by the League of Minnesota Cities. While it was concluded that some of these criteria could be applicable, it was also determined that a number of the sample criteria were too vague. The discussion at the January meeting also dealt with the issue of what is the City's vision in terms of commercial and industrial development and how does this translate into community goals for development. By determining whether a proposed project is consistent with the community's goals for development and vision, the City can better determine if it should consider providing assistance to this project. The general concept of developing a vision for the City was addressed in the recently completed Comprehensive Plan. A copy of the Land Use Policies and Goals for retail, office, central business district and industrial areas in the recently adopted Comprehensive Plan are attached. While this document addresses the overall development goals of the City, it may not be specific enough to determine whether a particular project would warrant receiving financial assistance. The Downtown or Central Business District is an area of the City for which a more specific plan was developed in the form of the Downtown Development Guide. To date, the public assistance that has been provided Downtown was for public infrastructure such as Market Plaza. The redevelopment projects that have occurred recently have been completely privately financed. To determine a more specific vision or goals for other areas of the City, more detailed planning may be required. An example may be the area designated as Office Park in the Comprehensive Plan located near County Road 70 and I -35. Staff recommends continued EDC discussion of these and other issues associated with the City's policy on business assistance at this meeting. As has been evidenced in discussions at previous meetings, this can be a rather complex issue. The goal is still to determine what if any business assistance policy changes the EDC wishes to recommend to the City Council. Staff will present additional information at the meeting on this issue including information on a specific business prospect that recently considered Lakeville along with a number of other cities in several states and the outcome of that search /site selection process. City of Lakeville Economic Development Commission Meeting Minutes November 24, 2009 Marion Conference Room, City Hall 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 Chamber of Commerce Executive Director Todd Bornhauser. Members Absent: None. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist. 1. Call Meeting to Order Chair Matasosky called the meeting to order at 4:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve September 29, 2009 Meeting Minutes Motion 09.11 Comms. Emond /Erickson moved to approve the minutes of the September 29, 2009 meeting as presented. Motion carried unanimously. _6i 3. Discussion of City's Policy on Economic Development Incentives Dave Olson reviewed the EDC memo and discussed recent requests for incentives from 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 common. While often times the businesses ask about financial incentives, staff many times attempts to inform the businesses about other things the City can do to make this the right location for them. Chair Matasosky noted 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 studies of successful projects in Lakeville. Use testimonials from "satisfied customers" to help market and promote the City. Ex- officio member Bornhauser stated that we 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 -Meal project received tax increment financing (TIF) benefits for coming to Lakeville. Mr. Olson responded that the 25 -year TIF district Malt -O -Meal is locating in captures increment to repay the costs originally associated with the land purchase and infrastructure improvements. Mr. Mielke added that while TIF can be used to offset public improvement costs, the message historically in Lakeville has been that we don't generally do TIF. Comm. Starfield noted that it's difficult to see a business that may have considered Lakeville end up locating in a city like Faribault. How can we market the benefits of our location? Comm. Tushie responded that incentives /benefits should be looked at as a way of comparing the cost of locating in Lakeville to someplace else. For this comparison we have to consider ourselves as in the Metro. Cities in the Metro don't use TIF for industrial development, but will sometimes use it for office or housing projects. To be competitive we also have to evaluate the cost of City fees, connection charges etc. 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. 2 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 where this 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 next tier out from the Metro area. 4. Review of 2010 Community Development Block Grant (CDBG) Application Mr. Olson reviewed the EDC memo outlining the 2010 request for CDBG funding to the Dakota County Community Development Agency (CDA). Mr. Olson noted that the funding is being proposed as follows: Downtown Code Improvement Program $67,413 Senior Center Roof/Window Replacement $60,000 Home Rehab Loan Program $10,000 Reallocation of remaining 2006 "Downtown Acquisition /Clearance" to Home Rehab Loan Program $13,438 Comm. Tushie asked if CDBG money can be spent on land acquisition for expanding the Lakeville Senior Center. Mr. Mielke responded that while that is an eligible expense, the City Council has not identified that activity as a goal at this point in time. Comm. Emond asked who solicits homeowners and businesses for utilizing the Home Rehab Loan Program 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. 3 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. Members Absent: Smith, Starfield. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist. 1. Call Meeting to Order 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. Tushie /Emond moved to approve the minutes of the November 24, 2009 meeting as presented. Motion carried unanimously. 3. Election of Officers After a brief discussion, Chair Matasosky asked if anyone was interested in being an officer for the EDC. Motion 10.02 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 City. 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 Lakeville. 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 this. 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 long -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. • Comm. Tushie stated that in most cities higher paying jobs have shifted away from the industrial sector and more over to office jobs. • Comm. Vlasak asked if the City opens itself to any potential risk of discrimination by establishing benchmarks. • Mr. Olson responded that it could potentially lead to more subsidies. • Comm. Tushie added that a subsidy shouldn't be looked at as a right, but as a selective privilege. The "but for" test would still need to be considered. • To increase the local business and industrial market potential of the City of Lakeville. o Mr. Olson and Mr. Mielke asked if this should focus on emphasizing development types the City doesn't currently have much of. • To encourage additional unsubsidized private development in the area, either directly, or through secondary "spinoff' development. o Mr. 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 developer 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 job 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 item needs more discussion. Mr. Olson asked the EDC if there were other values 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. Comm. Tushie added that corporate headquarters are what provide a diversity of executive homes and can add to the available housing mix in Lakeville. Comm. Matasosky stated that 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 by 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. 12 2008 Comprehensive Land Use Plan Goals and Policies 4. Establish administrative and policy mechanisms that will facilitate the development of low and moderate income housing and respond to potential housing deficiencies. 5. Lakeville shall ensure that all housing assistance available, be it state or federal, be made available and accessible to community residents. Retail Commercial and Office Land Use Goals ■ Create a cohesive and unified identity for Lakeville's commercial areas making attractive gateways and focal points within the community. ■ Focus commercial development in concentrated market centers oriented to major transportation corridors and intersections to promote sustainable business activity responsive to Lakeville's needs and surrounding market area. ■ Limit the expansion of existing neighborhood commercial sites except to those transitional uses that provide for compatible land use arrangements. ■ Identify locations for development of commercial office parks within Lakeville to provide for expanded local employment opportunities and diversified tax base. ■ Redevelop commercial sites that display building deterioration, obsolete site design, land use compatibility issues and under - utilization of the site. ■ Support tourism and City promotion through the activities of the Lakeville Convention and Visitors Bureau and the Lakeville Area Chamber of Commerce. Retail Commercial and Office Land Use Policies 1. Evaluate the physical implication of commercial land uses located in areas of high accessibility with consideration related to traffic generation, site access, sewer and water demands, environmental issues and compatibility with neighboring land uses. 2. Develop commercial centers as cohesive, highly inter - related units with architectural performance standards that assure the creation of attractive, functional and durable structures, sites that are adequately and appropriately landscaped and adequately screened or buffered from any adjacent residential development, with provisions for safe access with adequate off - street parking as well as safe and convenient pedestrian movement. City of Lakeville -35- December 2008 2008 Comprehensive Land Use Plan Goals and Policies 3. Coordinate new development and redevelopment efforts with adjoining commercial properties to create site designs that promote attractive shopping environments, easy accessibility, and a high level of business interchange. 4. The intrusion of commercial land uses in residential neighborhoods shall be regulated and controlled to minimize adverse impacts. 5. Actively communicate with the Lakeville Area Chamber of Commerce and local businesses to gain an understanding of the changing needs of the commercial market. 6. Promote joint utilization of parking and other related supportive services in service and commercial districts while ensuring parking supply meets the demand generated by the uses. 7. Regulate and enforce outdoor storage and sales associated with commercial uses to ensure attractive site maintenance. 8. Allow signage of commercial properties to facilitate business identification but restrict signs to prevent over - intensification causing a negative aesthetic or potential driver distraction. 9. Encourage high quality commercial development and architectural standards at Interstate 35 interchanges that takes advantage of the visibility and access provided along the corridor. 10. Commercial land use and development must be planned in a manner that reduces the traffic impacts on the City's major arterial streets and freeway interchanges. 11. Establish locations for office parks to supplement the City's retail and service locations and establish performance standards to ensure the highest quality development in highly accessible and visible areas of Lakeville. 12. Promote Airlake Airport to attract high quality commercial, office and industrial development to Lakeville that may have air service needs. 13. Limit neighborhood commercial locations to existing zoned locations and establish building and site design standards for neighborhood commercial locations that insure a compatible coexistence with adjoining residential areas. 14. Design and maintain commercial buildings to be resistant to person and property crime. City of Lakeville -36- December 2008 2008 Comprehensive Land Use Plan Goals and Policies Central Business District Goals Enhance the Lakeville CBD as a vibrant, historic center for the City of Lakeville that includes a broad range of mixed land uses arranged in a traditional development pattern characteristic of the existing area. Connect the Lakeville CBD to other neighborhoods and commercial locations within the City to enhance the attraction of the area as a destination and amenity within the community. Integrate new development or redevelopment within the Lakeville CBD with adjacent properties and existing uses to maintain the established character of the City's historic core. Central Business District Policies 1. Implement the 2006 Downtown Development Guide, as may be amended. 2. Expand the commercial attraction of the historic CBD by providing a land use and transportation connection between the CBD and Heritage Commons. 3. Promote a broad range of commercial and civic land uses within the CBD including retail, service, office, entertainment, performing arts, and civic land uses. 4. Promote a variety of building designs, but establish guidelines that require continuity in building architecture, materials and streetscape treatments. 5. Require site design that establishes building orientations to focal points such as street intersections, open spaces, and view sheds offered in the CBD. 6. Utilize common elements within the CBD such as public structures, streetscape, open spaces, plazas, and pedestrianways to establish a strong identity that is coordinated with Lakeville's goals. 7. Integrate commercial land uses through site design, building orientation, pedestrian connections and shared parking to establish a customer friendly shopping environment and to promote a high level of business interchange. 8. Redevelop incompatible and /or functionally obsolete buildings in the CBD area with appropriate scale and type of development. City of Lakeville -37- December 2008 2008 Comprehensive Land Use Plan Goals and Policies Industrial Land Use Goals ■ Provide areas for development of industrial uses in Lakeville that allow for a range of industrial activities compatible with adjoining land uses. ■ Pursue the orderly expansion of Lakeville's industrial parks through the logical extension of utilities to ensure local employment opportunities and a diverse tax base. ■ Redevelop industrial sites that exhibit building deterioration, obsolete site design, environmental concerns, and /or land use compatibility issues. Industrial Land Use Policies 1. Continue to implement the Lakeville Strategic Plan for Economic Development. 2. Continue communication with Lakeville's businesses and industries to stay abreast of their changing needs to facilitate the retention and in -place expansion of existing industries. 3. Provide industrial sites that offer a degree of isolation from less intense land uses, to allow the prospective industries to operate without producing nuisance concerns and prohibit industrial traffic from intruding on residential neighborhoods. 4. Require high quality industrial architecture and construction to insure building durability and an aesthetically attractive appearance with consideration for development regulations that provide site design flexibility to accommodate in- place industrial expansion and building reuse. 5. Infill industrial development and orderly expansion of industrial parks that maximize the return on Lakeville's investments in public facilities and services shall be promoted. 6. Identify sites for industrial expansion in Lakeville giving consideration to the physical implications of industrial park planning related to traffic generation, rail and airport use, sewer and water demands, environmental issues and compatibility with neighboring land uses. 7. Remove obsolete or deteriorating buildings to create buildable sites for new industrial opportunities or investigate alternative uses for industrial redevelopment projects where land use compatibility issues exist. City of Lakeville -38- December 2008 2008 Comprehensive Land Use Plan Goals and Policies 8. Ensure that industrial uses have adequate transportation system and utility access so as not to overburden Lakeville's service capacities. 9. Encourage site designs that integrate industrial uses with natural features of the land and provide an aesthetically attractive appearance. 10. Promote site upkeep and maintenance through code enforcement to promote a positive community image. City of Lakeville -39- December 2008 n,rn No. �= City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: March 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): 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. O 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 0 Create a single effective message/ platform about economic development. 0 Create and begin to implement marketing strategies. Partnerships 0 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, 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 i 20 No. City of Lakeville Community and Economic Development 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: March 19, 2010 Subject: March Director's Report The following is the Director's Report for March of 2010. Article on Jerry Erickson Please take the time to read the attached article on Jerry Erickson in this week's Dakota County Tribune if you have not already done so. The article does an excellent job of hi- lighting many of Jerry's contributions to the community over the past 40+ years. Most of you probably received Martha's email indicating that while Jerry is doing better, he is not able to leave his home at this point. Building Permit Report The City issued building permits with a total valuation of $6,885,061 through the end of February. This compares to a total valuation of $5,907,233 during the same period last year. The City total valuation of commercial and industrial permits through February was $485,000 which compares to $751,000 during the same period last year. The City also issued permits for 14 single family homes in February with a total valuation of $3,756,000. This compares to permits for five single family homes with a total valuation of $1,529,000 during the same period last year. It should be noted the City has issued permits for 20 single family homes through the end of February compared to 10 during the same period last year. Development Updates Paradise Pizza and Grill has signed a lease and will be going into the former Kazolly's space in the Hewitt Investments Building. The owners are Lakeville residents and opened a new location in Savage last year. They expect to be open some time in May. Foreclosure Update Attached is the monthly foreclosure summary for Dakota County as provided by the Dakota County CDA. There were a total of 28 Sheriff Sales in Lakeville in February. The total number of Sheriff's sales year to date is 53 and the total for all of 2009 was 257. City Building Inspections staff are currently monitoring 71 damaged and /or vacant homes in the City. Minnesota Job Skills Program Grant for ConAgra Attached is a press release from the Minnesota Department of Employment and Economic Development announcing the approval of a $383,181 Minnesota Job Skills Partnership program grant to support the training of 575 employees of ConAgra Foods Inc. at their plants in Maple Grove, Hastings, and Lakeville. This two year training collaboration will be coordinated and facilitated by Dakota County Technical College (DCTC). ConAgra and DCTC will be developing a for - credit manufacturing technician curriculum for machine mechanical and electrical technicians, production line workers and supervisors. Dakota Electric Partners in Progress Event EDC members may recall this event which was held annually by Dakota Electric Association (DEA) in March at the Royal Cliff in Eagan. Dakota Electric informed cities at the end of 2009 that this event is no longer being held as a result of budget reductions. 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E U U v El O A N U O > v Q C " a� o �~ o 0 U u w o 0 a v� v� �a E v� � � r� � � N¢ Q to F 'H: 01Vt E Dakota County OWNERS H 11P CDA900006*00000*0000*0009 Community Development Agency To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: March 15, 2010 Re: Foreclosure Update Foreclosures in Minnesota Foreclosures in Minnesota: A Report Based on County Sheriffs Sale Data was recently released. According to the report, 23,019 foreclosures took place in Minnesota in 2009. Even though the number declined 12 percent from 2008, it was still the second highest year on record. 1.28 percent of all residential properties in Minnesota had a foreclosure in 2009, and nearly 5 percent of all residential properties had a foreclosure in the last five years. The Minnesota Home Ownership Center, Greater Minnesota Housing Fund, Minnesota Housing and Family Housing Fund published the report, with research provided by HousingLink. An article about the report is included in this month's a -news. More information, including the complete report, can be found at www.hocmn.org Please note that this report shows 1,787 foreclosures in Dakota County for 2009 compared to the CDA's year -end table that shows 1,860 sales. The CDA is currently discussing these issues with HousingLink. Foreclosure Counseling Event CDA staff is planning another foreclosure counseling event. FREE Walk -in Foreclosure Counseling for Homeowners is set to take place on Thursday, April 8 from 3:30 — 6:30 p.m. at the Robert Trail Library located at 14395 S. Robert Trail in downtown Rosemount. Homeownership Specialists will be available to speak to homeowners one -on -one to answer questions and give advice. The event will provide information on what happens during the foreclosure process, homeowners' rights, and solutions for long -term housing needs. If people are unable to attend the event, the CDA encourages them to call the foreclosure intake line at 651- 675 -4555. Please note: After verifying January Sheriff Sale municipality addresses, there is a slight change in city sale numbers than what was reflected in last month's a -news. HOME Dakota County OWNERSHIPIL CDA60**000000000000090000 Community Development Agency W 1 Dakota County Stats — February 2010 • # of Sheriff Sales in February — 169 (compared to 172 in February 2009) • Total Sheriff Sales for 2010 — 364 (compared to 313 in Jan. - February, 2009) • # of Notices of Pendency Filed in February — 262 • Total Notices of Pendency Filed for 2010 — 547 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. 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: • More homeowners are beginning to walk away from their underwater properties. By the third quarter of 2009, an estimated 4.5 million homeowners had home values that were below 75 percent of the amount owed on the mortgage. That number is expected to reach S. I million by June of this year. • Minneapolis and St. Paul have both established programs to deal with the unprecedented number of foreclosed homes. • Another article about underwater homeowners. In the fourth quarter of 2009, 1 in 5 homeowners owed more on their mortgage than their home was worth. • Information from the Foreclosure in Minnesota report about the Twin Cities metro area in particular, as well as some numbers from the Making Home Affordable program. • Another article that addresses the Foreclosures in Minnesota report, but also cautions that 2010 will likely be another year for high numbers of foreclosures. 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 r un z o� V • cu • Q c. C • • • 4 • GJ • C • U C • C • O . �o. � V . J 0 N [d 7 LL C L w O �V to of 4J 3 C 0%.'D O%:'O O Ol 00 Ln N CD �p O M C % Ln N R. M N Ln — C M LO ^ pp — o O 00 . v Z0 Z0 Co to A M Ln — M — M N — M — M 1 00 yi d! 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By his calculation, it will be about the year 2025 before he can sell his modest home for what . he paid. Or maybe 2040. "People like me are beginning to feel like suckers," Mr. Koellmann said. "Why not let it go in default and rent a better place for less ?" After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million - dollar bonuses, after the Obama administration's loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing. New research suggests that when a home's value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying. homes were worth was virtually nil when the real estate collapse began in mid -2006, but by the third quarter of 2009, an estimated 4.5 million homeowners had reached the critical threshold, with their home's value dropping below 75 percent of the mortgage balance. They are stretched, aggrieved and restless. With figures released last week showing that the real estate market was stalling again, their numbers are now projected to climb to a peak of 5.1 million by June — about 10 percent of all Americans with mortgages. "We're now at the point of maximum vulnerability," said Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. "People's emotional attachment to their property is melting into the air." Suggestions that people would be wise to renege on their home loans are at least a couple of years old, but they are turning into a full- throated barrage. Bloggers were quick to note recently that landlords of an 11,000 -unit residential complex in Manhattan In a situation without precedent in the modern era, millions of Americans are in this bleak position. Whether, or how, to help them is one of the biggest questions the Obama administration confronts as it seeks a housing policy that would contribute to the economic recovery. "We haven't yet found a way of dealing with this that would, we think, be practical on a large scale," the assistant Treasury secretary for financial stability, Herbert M. Allison Jr., said in a recent briefing. The number of Americans who owed more than their Print Powered By (OW Formatpynamics 11 1AMAIA NYT: No help in sight, more homeowners walk away - The New York Times Page 2 of 4 showed no hesitation, or shame, in walking away from their deeply underwater investment. "Since the beginning of December, I've advised 60 people to walk away," said Steve Walsh, a mortgage broker in Scottsdale, Ariz. "Everyone has lost hope. They don't qualify for modifications, and being on the hamster wheel of paying for a property that is not worth it gets so old." Mr. Walsh is taking his own advice, recently defaulting on a rental property he owns. "The sun will come up tomorrow," he said. The difference between letting your house go to foreclosure because you are out of money and purposefully defaulting on a mortgage to save money can be murky. But a growing body of research indicates that significant numbers of borrowers are declining to live under what some waggishly call "house arrest." Using credit bureau data, consultants at Oliver Wyman calculated how many borrowers went straight from being current on their mortgage to default, rather than making spotty payments. They also weeded out owners having trouble paying other bills. Their estimate was that about 17 percent of owners defaulting in 2008, or 588,000 people, chose that option as a strategic calculation. Some experts argue that walking away from mortgages is more discussed than done. People hate moving; their children attend the neighborhood school; they do not want to think of themselves as skipping out on a debt. Doubters cite a Federal Reserve study using historical data from Massachusetts that concludes there were relatively few walk -aways during the 1991 bust. The United States Treasury falls into the skeptical camp. "The overwhelming bulk of people who have negative equity stay in their homes and keep paying," said Michael S. Barr, assistant Treasury secretary for financial institutions. It would cost about $745 billion, slightly more than the size of the original 2008 bank bailout, to restore all underwater borrowers to the point where they were breaking even, according to First American. Using government money to do that would be seen as unfair by many taxpayers, Mr. Barr said. On the other hand, doing nothing about underwater mortgages could encourage more walk - aways, dealing another blow to a fragile economy. "It's not an easy area," he said. Walking away — also called jingle mail," because of the notion that homeowners just mail their keys to the bank, setting off foreclosure proceedings — began in the Southwest during the 1980s oil collapse, though it has never been clear how widespread it was. In the current bust, lenders first noticed something strange after real estate prices had fallen about 10 percent. An executive with Wachovia, one of the country's biggest and most aggressive lenders, said during a conference call in January 2008 that the bank was bewildered by customers who had "the capacity to pay, but have basically just decided not to." 1_ai_.l /_______ --- -__1_- ______ _ ---- /: -1 PI CnI An Lf/___A______._ -_ �L- -- ____ ____.1_ a_.__-- /._ - - _ /'1 1 ] e%1A /,%^IA NYT: No help in sight, more homeowners walk away - The New York Times Page 3 of 4 (Wachovia failed nine months later and was bought by Wells Fargo. ) With prices now down by about 30 percent, underwater borrowers fall into two groups. Some have owned their homes for many years and got in trouble because they used the house as a cash machine. Others, like Mr. Koellmann in Miami Beach, made only one mistake: they bought as the boom was cresting. It was April 2006, a moment when the perpetual rise of real estate was considered practically a law of physics. Mr. Koellmann was 23, a management consultant new to Miami. Financially cautious by nature, he bought a small, plain one - bedroom apartment for $215,000, much less than his agent told him he could afford. He put down 20 percent and received a fixed -rate loan from Countrywide Financial. Not quite four years later, apartments in the building are selling in foreclosure for $90,000. "There is no financial sense in staying," Mr. Koellmann said. With the $1,500 he is paying each month for his mortgage, taxes and insurance, he could rent a nicer place on the beach, one with a gym, security and valet parking. Walking away, he knows, is not without peril. At minimum, it would ruin his credit score. Mr. Koellmann would like to attend graduate school. If an admission dean sees a dismal credit record, would that count against him? How about a new employer? Most of all, though, he struggles with the ethical question. "I took a loan on an asset that I didn't see was overvalued," he said. "As much as I would like my bank to pay for that mistake, why should it ?" That is an attitude Wall Street would like to encourage. David Rosenberg, the chief economist of the investment firm Gluskin Sheff, wrote recently that b orrowers were not victims. They "signed contracts, and as adults should also be held accountable," he wrote. Of course, this is not necessarily how Wall Street itself behaves, as demonstrated by the case of Stuyvesant Town and Peter Cooper Village. An investment group led by the real estate giant Tishman Speyer recently defaulted on $4.4 billion in debt that it had used to buy the two apartment developments in Manhattan, handing the properties back to the lenders. Moreover, during the boom, it was the banks that helped drive prices to unrealistic levels by lowering credit standards and unleashing a wave of speculative housing demand. Mr. Koellmann applied last fall to Bank of America for a modification, noting that his income had slipped. But the lender came back a few weeks ago with a plan that added more restrictive terms while keeping the payments about the same. "That may have been the last straw," Mr. Koellmann said. Guy D. Cecala, publisher of Inside Mortgage Finance magazine, says he does not hear much sympathy from lenders for their underwater customers. Print Powered By . ForrnatDynamicS" ')inMnin NYT: No help in sight, more homeowners walk away - The New York Times Page 4 of 4 "The banks tell me that a lot of people who are complaining were the ones who refinanced and took all the equity out any time there was any appreciation," he said. "The banks are damned if they will help." Joe Figliola has heard that message. He bought his house in Elgin, III., in 2004, then refinanced twice to get better terms. He pulled out a little money both times to cover the closing costs and other expenses. Now his place is underwater while his salary as circulation manager for the local newspaper has been cut. "It doesn't seem right that I can rent a place somewhere for half of what I'm paying," he said. "I told my bank, 'Just take a little bite out of what I owe. That would ease me up. Isn't that why the president gave you all this money?'" Bank of America did not agree, so Mr. Figliola, who is 48, sees no recourse other than walking away. "I don' t believe this is the right thing to do," he said, "but I' ve got to survive." This article, "No help in sight, more homeowners walk away," first appeared in The New York Times. Copyright © 2010 The New York Times URL: http: / /www.msnbe.msn. com/id/35210866/ns/business- the _new _york_ times /page /2/ MSN Privacy. Legal© 2010 MSNBC.com Print Powered By FormatD namics- http:// www. startribune. com/local/stpaul/83727372.htinl ?page =4 &c=y Page 1 of 4 In housing meltdown, cities turn into buyers Guess who's moving in on the local housing scene? You are, fellow taxpayer. In an extraordinary effort to save neighborhoods ravaged by unprecedented numbers of foreclosures, Minneapolis and St. Paul are spending millions of dollars to buy and repair houses and put new owners back in them. It's an unusual governmental reach into the housing market, fueled by federal money and reminiscent of urban renewal and freeway building 50 years ago. The cities aren't clear- cutting blocks of houses and downtown buildings as they did in the 1960s, but they are leaving their mark with bulldozers and construction crews. It's a response to an urban disaster playing out across the nation, where waves of foreclosures and abandoned buildings have lowered property values, attracted crime and bred despair. At stake, city officials and residents say, are safety, character, quality of life and, in all practical terms, tax base. "I can guarantee if we weren't doing what we're doing, we'd lose the properties to i nvestors and flippers," said Cecile Bedor, St. Paul's planning director. The focus areas are parts of north and south - central Minneapolis and central and eastern St. Paul. Between 2007 and last month Minneapolis spent $9.4 million acquiring 220 properties. That's half of the time it took the city to buy 280 properties in the first six years of the decade. St. Paul spent $8.5 million acquiring 205 properties in the past three years. Neighborhood activists and city officials blame out -of -town investors and absentee landlords for much of the decline in some neighborhoods. As housing values soared earlier in the decade, investors snatched up properties a nd stripped equity from them. Meanwhile, other people who weren't qualified bought homes through exotic loans that eventually led to foreclosure. Authorities uncovered mortgage fraud rings. And as banks took back their properties, the blocks those homes sat on grew shabby and attracted vandals, squatters and copper thieves. City resources were stressed. Print Powered By Format Dynamics" http:// www. startribune .com/local/stpaul/837273 72.html ?page =4 &c=y Page 2 of 4 Consider: - The number of vacant and boarded buildings in Minneapolis jumped from 286 in 2004 to 857 in 2008. St. Paul saw an increase of 370 to 2,000. - From 2005 to 2008, foreclosures in Minneapolis went from 870 to 3,000. In St. Paul, they grew from 480 to 2,200. Positive changes One result was that two years ago, people would roll through the intersection at 6th Street and 31 st Avenue N. in Minneapolis, too scared to stop. One notorious home served as a drug bazaar. A couple of doors down was a brothel. A few burned -out and boarded -up hovels were nearby. Three- quarters of the properties in the four -block area were razed, boarded or foreclosed upon. Today, there are snow - covered vacant lots where the problem properties once sat. It's quieter now and, this spring, a new house will be built, the first of an eco- friendly development. It's an example of what can happen when cities, neighbors, nonprofits and others work together to clear out the bad, he said. There's not enough money to fix all of the housing problems, experts say, but doing nothing isn't an option. Get rid of problem properties, save the houses that can be saved, and give a hand to home buyers willing to heal a hurting neighborhood. Most of all, they say, give confidence to those left behind that it's worth investing in their homes. "Things have gotten a little better," said Norma Roberts - Hakizimana, whose Frogtown duplex had been surrounded by six vacant houses a year ago. A trouble house was demolished not long ago, and a few others are either reoccupied or being rehabbed. Many funding sources Money to finance the fight against blight is coming in from all areas, from foundations to banks to taxpayers. In one program alone, the federal government is pouring $65 million into Minneapolis and St. Paul for the cities to buy, raze, repair and lure new owners to Print Powered By (131 FormatDynamics" j 7_aa.__ /l _a_..�..'1___.__ __ --- /a_._...1_a__. /8_../71'1 /,r 7f lA A/7l7GG '1 /n /nnln http: / /www. startribune. com/local/stpaul/83 72 73 72.html ?page =4 &c=y Page 3 of 4 hundreds of properties. It's part of a $6 billion federal stimulus plan, the Neighborhood Stabilization Program (NSP), intended to rescue U.S. neighborhoods hit hardest by foreclosures. Minneapolis and St. Paul are using slightly different approaches with their money. Minneapolis is trying to avoid owning many properties, so it's using the bulk of its NSP funding for nonprofit and community development groups to buy and rehab houses. The city will buy and knock down some buildings that aren't worth saving and "banking" the land until it can be redeveloped. By contrast, St. Paul is taking ownership of abandoned and foreclosed properties to have better control over who will redevelop them. In some areas, the city is trying to put several parcels together for larger projects. Both cities are using some of the money for home -buyer assistance programs. Some are skeptical While skeptics acknowledge the dilemma cities face, they also question the wisdom of more governmental involvement in real estate and wonder how long the cities will sit on lots that don't pay taxes. "What's the city doing in the land speculation business ?" asked Phil Krinkie, president of the Taxpayers League of Minnesota and a heating contractor who has worked in hard - hit St. Paul neighborhoods. "To have the government step in and own or tear property down based on the current market is ludicrous because they'll sit with empty property for who knows how long." Then, Krinkie said, the city will have to create new subsidies for construction or to get rid of the vacant land. Bedor, St. Paul's planning director, agreed that could happen, but it would be "irresponsible" of the city to wait for the in arket to take care of itself. If subsidies can spur bigger private investments, she said, all the better. Stuart Simek is a private developer who has done projects in St. Paul. He said the city will need to provide financial incentives or multi - lot parcels to entice private developers into the neighborhoods. Hundreds of more houses are set to be picked up by the cities and nonprofit Print Powered By (IN I FormatDynamics" ] http:// www. startribune .com/local/stpaul/83727372.html ?page =4 &c=y Page 4 of 4 �"iTM M �1; - I i r-�Klvj I developers in the next two years, either for renovation or razing. As more homes come back on line, the cities will try to put hundreds of new owners in them. "At the end of the day, if a government program is successful, the government isn't necessary," said Tom Streitz, Minneapolis' housing director. "A healthy housing market doesn't need government intervention." Chris Havens • 612 - 673 -4148 Print Powered By Fc>rmatDynamics" 1 - W _. ii -- -- -- -`--'-�- - - - `-- irJ- nI nininn,n Report: 1 in 5 U.S. homeowners underwater - Real estate Page 1 of 2 Report: 1 in 5 U.S. homeowners underwater Foreclosures across the country rose to a new high in December Reuters updated 4:41 p.m. CT,Wed., Feb. 10, 2010 NEW YORK - One of every five U.S. homeowners owed more on their mortgage than their home was worth in the fourth quarter, a trend that poses a serious threat to the U.S. housing market's recovery, real estate Web site Zillow.com said on Wednesday. brief period of stabilization or recovery. Zillow forecasts a definitive bottom in home values in the second quarter of 2010, Humphries said. "It is important to note, however, that the arrival of the bottom does not mean that recovery is around the corner," he said. Homeowners with "underwater" mortgages are more prone to defaults and foreclosures. They typically do not qualify for refinancings and are unable to sell their homes because they would need to cough up cash at closing time to pay off their mortgage. The percentage of American single - family homes with mortgages in negative equity rose to 21.4 percent in the fourth quarter from 21 percent in the third quarter, according to the Zillow Real Estate Market Reports. U.S. home values declined again in the fourth quarter, as the Zillow Home Value Index fell 5 percent year - over -year and down 0.5 percent quarter -over- quarter, to $186,200. It was the 12th consecutive quarter of year -over -year declines, the reports showed. "The prevalence of markets in or near a double -dip situation shows that we are not yet at the bottom, in terms of home values," Stan Humphries, Zillow chief economist, said in an interview. One in five, or 29 of the 143 markets tracked by Zillow, had at least five consecutive month -over- month increases in home values during 2009 before values began to flatten or fall again in the second part of the year. These markets included the Boston, Atlanta and San Diego metropolitan areas. Zillow said it defines a "double dip" as two periods of sustained declines in home values separated by a Home values in 29 markets, including the Los Angeles and New York metro areas, increased on a month -over -month basis throughout the fourth quarter. The rate of increase, however, slowed from November to December in 21 of those markets. Meanwhile, the number of homeowners losing their homes to foreclosure across the country rose to a new high in December, with more than one in every thousand homes being foreclosed, the highest since Zillow began recording national foreclosure data in 2000, the reports showed. Foreclosure resales remained high, making up 20.3 Print Powered By CEO I Form7pynamics° Report: 1 in 5 U.S. homeowners underwater - Real estate Page 2 of 2 percent of all U.S. home sales in December. Foreclosure resales also made up the majority of sales in several metropolitan areas, including Merced, Calif., at 68.3 percent; Las Vegas, at 64 percent, and Modesto, Calif., at 62 percent. Additionally, 28.5 percent of home sales nationwide sold for less than what the seller originally paid. Home values increased year -over -year in 27 of 143 markets and remained flat in 15. Copyright 2010 Reuters. Click for restrictions. URL: http: / /www.msnbc.msn. com/id/35335957/ns/business-real MSN Privacy. Legal© 2010 MSNBC.com Print Powered By FarmatDynamics'') 1.. I/ 1 /•1 /A t•A.1 L•Arr1I /� • 1 . . / • . /� /1• 1 1 /�Al�l1/ /\/1 A /.l /�1 /� Twin Cities foreclosure sales decline, but still high - TwinCities.com TwinCitiesocom Pagel of 2 Twin Cities foreclosure sales decline, but still high Banks, lenders credited with slowing rate of repossessions By Christopher Snowbeek csnowbeck @pioneerpress.com Updated: 02/17/2010 10:09:08 PM CST Fewer foreclosures The annual total of foreclosures in 2009 was down for the first time since 2005 in the Twin Cities and across the state. Change 2005 2006 2007 2008 2009 OB -09 Minnesota 6,472 1!,907 20,398 262M '2 ,019 42% Twin Cities 3,765 7,130 IZ968 17,264 14,459 16% Hennepin 1,681 3,042 5,561 7,348 5,655 -23% Ramsey 632 1,498 2,346 3,073 2,519 47% Anoka 520 849 1,680 '2,285 '2,069 -9%" Dakota 459 880 1,610 2,063 1.757 -13% Washington 244 414 878 1,257 1,255 0% Souroe. HousingUnk PIONEER PRESS Foreclosure sales in the Twin Cities declined 16 percent in 2009 from the previous year — the first such annual decline since 2005, according to a report being released today. But even the latest totals remain near historic highs, and that's not expected to change any time soon. "When you dig into the numbers, it's not as happy a story," said Ed Nelson, spokesman for the St. Paul - based Minnesota Home Ownership Center, one of four groups releasing the year -end foreclosure numbers. "We'll probably see numbers similar to 2008 and 2009 for a couple of years." The foreclosure sale tally in the seven -county metro area for 2009 was 14,459 — down nearly 3,000 from the previous year. Many lenders delayed foreclosure proceedings during the first quarter of 2009 and then launched a program in the spring with the federal government to modify mortgage terms as an alternative to foreclosure. While the efforts have helped, they can only go so far in the face of high unemployment, Nelson said. Foreclosures during the fourth quarter were up compared with 2008, and there was an increase at year's end in pre - foreclosure notices from lenders — a leading indicator of foreclosure activity. "Until the state's economic conditions improve," Nelson said, "foreclosures will remain high." Separately, on Wednesday, the Treasury Department released numbers suggesting the federal government's program is having more success. As of January, 2,123 borrowers in the Twin Cities had received permanent changes to their loan terms through the program — an increase of nearly 72 percent over the local total in December. National numbers showed a similar increase in permanent modifications from December to January. Called the Home Affordable Modification Program, the effort is being administered by banks, which so far have provided interest -rate reductions for all borrowers with permanent loan changes. Some borrowers also are seeing their monthly payments eased as banks either extend the term of the loans or — in about 27 percent of cases — reduce the principal amount owed. Print Powered By (Fd IFormaTDynamics' 1_ai_. 1 A IN /1 0/ A Twin Cities foreclosure sales decline, but still high - TwinCities.com TwinCitiesecom Page 2 of 2 The federal program started running more smoothly in late 2009 as lenders improved their staff training and capacity, said Nelson, of the home - ownership center. Even so, it hasn't been a panacea. More than 61,000 mortgage modifications initiated through the program nationally have been canceled thus far, the government reported Wednesday. And Mark Ireland, an attorney with the St. Paul - based Foreclosure Relief Law Project, said the number of permanent modifications provided by the federal program remains "a drop in the bucket." What's needed, he said, is for banks to more aggressively reduce the principal amount owed. "Although these modifications are lowering homeowners' monthly payments, the mean loan -to- value ratio after modification is 136 percent," Ireland said. "In other words, rather than owe what t he house is worth or have a little bit of equity, most homeowners owe 36 percent more than the house is actually worth.... If you are $50,000 under water, are you really a homeowner ?" JoAnne Griffith, 63, of Eagan, is owes more than her home is worth. That's part of the reason Griffith on Wednesday joined several hundred other struggling borrowers at the first of a two -day mortgage - modification event at RiverCentre in St. Paul hosted by Wells Fargo. Griffith's retirement income has taken a dramatic hit during the past year, she said, and she has missed two mortgage payments as a result. So she came to the event Wednesday hoping for some help from her lender. "I was able to walk out of here with a signed agreement for a short-term modification to my payment," Griffith said. While Griffith was unsure whether her modification is part of the federal program, Wells Fargo said Wednesday that the number of permanent modifications it has provided through the federal program doubled from December to January. The Wells Fargo event continues today at RiverCentre and is open to walk -in customers. The bank has hosted similar events in five other cities, and about half of the 6,300 homeowners assisted during the events received a workout option either on the spot or within a week or so of the event. Christopher Snowbeck can be reached at 651 -228- 5479. Print Powered By http://www.staitribune.com/business/84645922.html?page=2&c=y StarTribune.com Page 1 of 2 Foreclosures down, but anxiety still high There were 12 percent fewer home foreclosures in Minnesota in 2009, but don't celebrate yet. Despite the drop in foreclosures to 23,019, things may not be improving, said Ed Nelson, a spokesman for the Minnesota Home Ownership Center, a St. Paul nonprofit working on affordable housing that twice a year reports on Minnesota home foreclosures. Foreclosure rates remain "dangerously high" -- 1.28 percent of all residential properties in the state went into foreclosure in 2009, more than three times the normal rate, Nelson said. Since 2005, the year that Minnesota foreclosures began to increase, nearly 5 percent of all residential properties in the state have gone into foreclosure, he said. In addition, the underlying cause of home foreclosure -- homeowners becoming delinquent on mortgage payments due to a loss of income -- didn't improve at all in 2009, Nelson said. In fact, foreclosures dropped only because the impact of mortgage delinquencies was softened by federally backed mortgage modification programs and government purchases of mortgage- backed securities, and because Minnesota nonprofits counseled homeowners on how to avoid defaulting on mortgages, Nelson said. (Mortgages were altered in an attempt to make payments equal 30 percent of a homeowner's reduced household income.) But some of that federal cushion may disappear in the coming months. "Until the job market accelerates, and we see increased wages, we'll have pressure on delinquency rates," Nelson said. "We might have more foreclosures again." Scott Anderson, vice president and senior economist at Wells Fargo & Co. in Minneapolis, agreed. "The report shows we've taken a step in the right direction, but a baby step," Anderson said. "There is still a risk of foreclosures remaining high into 2010 because Minnesota unemployment is likely to drop, at most, only half a percent this year. That's not enough to move the needle on home foreclosures. This is the worst housing downturn since the Great Depression." As might be expected, based on population, Print Powered By id i=ormatp namics' httn_// www .startribune.com /temnlates/fdcn? 1266941878482 2/23/2010 http: / /www.startribune.com/ business /84645922.html ?page =2 &c=y L f IL 1_1 IM�I Page 2 of 2 Hennepin County had the highest number of home foreclosures in Minnesota last year, followed by Ramsey and Anoka counties. Dakota, Washington, Wright, Scott and Sherburne counties, in that order, had the next - highest numbers of foreclosures. Counties north of the metro area posted some of the highest foreclosure rates in the state. Isanti was the state's worst, with 2.86 percent, or 388, of its homes in foreclosure. Sherburne, Mille Lacs, Wright, Kanabec and Chisago, in that order, all had foreclosure rates higher than 2 percent, the report said. Nor has the problem abated everywhere. For example, Crow Wing County, which includes cottage country in the Brainerd Lakes area, had 397 foreclosures last year, 10 percent more than in 2008. Anderson said outstate counties have lagged six months behind the Twin Cities in suffering foreclosures, partly because their economies depended less on the hard -hit manufacturing and construction markets. But the outstate counties may be catching up as service or tourism -based economies are hurt by the recession, he said. Foreclosures were calculated by polling sheriffs departments in every county about the number of sheriffs sales they had scheduled on foreclosed homes, said Dan Hylton, the research manager at HousingLink, a Minneapolis nonprofit distributor of affordable housing information. "Sheriffs sales are a very good barometer of actual home foreclosures in Minnesota," Hylton said, because all but about 2 percent of the properties are residential, and the information is reported in a timely way. Steve Alexander - 612-- 673 -4553 Print Powered By FormatDynamics' lhttn• /Av unur ctarfr;6mP rnm /temTNIntPc /frlr`n?1?A6Qd1 R7RAR7 ) / ,)I1 ?n1n Page 1 of 2 Olson, David From: Carol Walsh [ deed .communications @state.mn.us] Sent: Monday, March 15, 2010 2:38 PM To: Olson, David Subject: MJSP grant to train ConAgra employees To view this email as a web page, go here. For Immediate Release Contact: Kirsten Morell, 651 -259- 7161 March 15, 2010 Kirsten.Morell @state.mn.us MJSP Grant Funds Training For Hundreds of ConAgra Employees ST. PAUL - The state Department of Employment and Economic Development's Minnesota Job Skills Partnership Program (MJSP) announced a $383,181 grant to support training for 575 employees of ConAgra Foods, Inc. located in Maple Grove, Hastings and Lakeville. The two -year training collaboration includes MJSP, ConAgra Foods and Dakota County Technical College (DCTC). ConAgra Foods is organized into two businesses, consumer foods and commercial products. In Minnesota, the company processes grain, flour and animal feed in Hastings; packaging in Maple Grove; and cereal, granola bars and other food items in Lakeville. ConAgra Foods and DCTC will collaborate to develop a for - credit manufacturing technician curriculum for machine mechanical and electrical technicians, production line workers and supervisors. Courses will include Mathematics for Mechanic /Electrician, DC and AC Electrical Theory, Mechanical Drives and Industrial Controls. Coaches from DCTC will work with ConAgra line leads and company trainers to help transfer knowledge and train production floor employees. 03/15/2010 Page 2 of 2 "This grant will help ConAgra Foods strengthen the skills of its employees, making the company more competitive," said DEED Commissioner and MJSP Board Chair Dan McElroy. "In addition, DCTC will create a new industrial maintenance program." For more information on the grant, contact Larry Raddatz, director of manufacturing and railroad, Dakota County Technical College, 651- 423 -8276, or e-mail larry.raddatz @dctc.edu . The MJSP offers technical, financial and job training assistance to businesses, communities, educational institutions and workers. The board brings businesses with specific education needs together with educational institutions to design customized training programs. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com Follow us on Twitter at www.twitter.com /PositivelyMN -30- Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk. This email was sent to: dolson @ci.lakeville.mn.us This email was sent by: MN Dept. of Employment & Economic Development • � SIT CV E. 332 Minnesota Street, Suite E200 St. Paul, MN 55101 -1338 USA Af Doom rd '"011"1111"d We respect your right to privacy - view our policy Manaae Subscriptions I Update Profile I One -Click Unsubscribe 03/15/2010 Page 1 of 3 Olson, David From: Monte Hanson [ deed .communications @state.mn.us] Sent: Thursday, March 18, 2010 9:16 AM To: Olson, David Subject: February 2010 Employment To view this email as a web page, go here. For Immediate Release Contact: Kirsten Morell, 651 - 259 -7161 March 18, 2010 Kirsten.Morell @state.mn.us State jobless rate steady at 7,3 percent in February Employers shed 3,400 jobs during the month ST. PAUL- The state unemployment rate remained unchanged at a seasonally adjusted 7.3 percent in February, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). The state jobless rate was 2.4 percent below the U.S. unemployment rate, which also held steady in February at 9.7 percent. Minnesota employers trimmed 3,400 jobs during February. January's job gain was revised up by 1,600 to reflect 17,200 jobs added to the state's economy. In the past year, Minnesota has lost 2.3 percent of its jobs, while U.S. jobs have declined by 2.5 percent. "February's employment picture is relatively stable, and I continue to be encouraged by certain trends we are observing in the data," said DEED Commissioner Dan McElroy. "Our labor force participation rate led the country at 72.5 percent in January and climbed to 72.7 percent last month. This could be a sign that more people are beginning to look for work as the recession eases." McElroy also noted that employment in the temporary help category is up 5.5 percent over the year. The length of the average workweek has held steady for the past three months at hours. Four of the state's 11 industrial sectors gained jobs in February, led by trade, transportation and utilities, which added 3,400 jobs. Other gains occurred in manufacturing (up 2,000), information (up 400), and professional and business services (up 200). Job losses occurred in construction (down 2,800), leisure and hospitality (down 2,300), government (down 1,900), financial activities (down 1,500), other services (down 700), logging and mining (down 100), and education and health care (down 100). 03/18/2010 Page 2 of 3 Over the past year, education and health services has added 3,600 jobs in the state. Year - over -year job losses have occurred in manufacturing (down 21,900), trade, transportation and utilities (down 10,800), construction (down 10,600), leisure and hospitality (down 7,100), financial activities (down 4,500), other services (down 4,100), government (down 1,500), logging and mining (down 1,400), information (down 1,300), and professional and business services (down 1,000). In the state Metropolitan Statistical Areas, over - the -year job losses occurred in the St. Cloud MSA (down 0.7 percent), Rochester MSA (down 1.4 percent), Duluth- Superior MSA (down 3 percent), Minneapolis -St. Paul MSA (down 3.1 percent) and Mankato MSA (down 3.4 percent). Meanwhile, DEED's Job Vacancy Survey in the fourth quarter of 2009 showed that there were 25,885 job vacancies in the state, down 17.4 percent from six months earlier. The number of unemployed people per job opening in the state has climbed in the past year from 5.6 people for each vacancy to 8.6 people per vacancy. More details on the February unemployment numbers are available at www. tinyurl.com /yixwtgx . For additional information on the Job Vacancy Survey, go to www.tinvurl.com /yi2zsu9 . DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com . Follow us on Twitter at .www.twitter.com/PositivelyMN . Over The Year Em to ment Growth By Industry Sector NSA Seasonally adjusted Not seasonally adjusted Unemployment February January February February Rate 2010 2010 -24.6 2009 2010 Minnesota 7.3 7.3 8.1 8.6 U.S. 9.7 9.7 10.4 8.9 Employment February 7anuary Feb. '09- Feb. '09- 2010 2010 Feb. '10 Feb. '10 Level % Change Change Minnesota 2 2 637 400 -60 -2.3 U.S. 129,526,000 129,562,000 - 3,235,000 -2.5 Over The Year Em to ment Growth By Industry Sector NSA OTY Job Chan a OTY Growth Rate % U.S. OTY Growth Rate Total Non -Farm Employment -60 -2.3 -2.5 Logging and Mining -1 -24.6 -8.3 03/18/2010 Page 3 of 3 Construction -10,600 -13.3 -14.2 Manufacturing - 21,900 -7.1 -6.7 Trade Trans. and Utilities -10,800 -2.2 -2.8 Information -1300 -2.3 -5.2 Financial Activities -4,500 -2.6 -3.3 Prof. and Bus. Services -1 -0.3 -2.0 Ed. and Health Services 3,600 0.8 1.7 Leisure and Hospitality -7 -3.1 -1.5 Other Services -4,100 -3.6 -1.9 Government -1500 -0.4 -0.5 Metropolitan Statistical Area OTY Employment Change # NSA OTY Employment Change %, NSA Minneapolis-St. Paul MN -WI MSA -53,500 -3.1 Duluth-Superior MN -WI MSA -3,900 -3.0 Rochester MSA -1 -1.4 St. Cloud MSA -700 -0.7 Mankato MSA -1 -3.4 All labor force data are subject to revision. • The unemployment rate is the percentage of people actively seeking work compared with those in the labor force (employed plus unemployed). -30- Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk. This email was sent to: dolson @ci.lakeviile.mn.us This email was sent by: MN Dept. of Employment & Economic Development A ,,���//I IT L k Y 332 Minnesota Street, Suite E200 St. Paul, MN 55101 -1338 USA wLil�7f`i7>f i We respect your right to privacy - view our policy Manage Subscriptions I Update Profile I One -Click Unsubscribe 03/18/2010 B U S t N E S S W E E K /rar(A 115, a 0%o Agoodlhfe as a village druggist Jerry Erickson built businessco a in Lakeville h Larry rl nrrr '1 k ibv rui it tit 1h. I.ury; 11(7�1 sal, W*:,hilig aCrtsWN the 0Httltcr f it a hrarta hata:Lsh►slx. `I Io w'S .1wX Th.41 klnil .af gieetiag at the p1wrnwy .isinacr of IGrick�►n Dnigi, hclik -d make nq rrnnv ficini marls of the river to taleille a link- eisier hark in the €rang st 19". It came from jetr i•.aicku -in wtu), like ne, "I nww d to the con►rnitnity (min Fdina aril, like inc., ursnsicmi wheiher le utusld be w- icptixf by the t.scals. Erkksmi had cater alnicnt W) rein earlier to a i.al %ilk that was vety dilTrrctit. a upiarc- tnilf sillaµe will► 1,11011 residcats, anipaml with a city of itsurr Chan 50,40) in :1$ kpitc nlik. Wk AV. `Il,c sits ` Rtclw, 1 — • .r. _ 1. roirk 41AAvilw wit, where I :ri.; b:dtyn. I )nlgs w•as Ol$ rleki by terry and N6 wyt c, Martha, in Au- gust of 1963. tihe sm all - Ns%%n atnlnsphete livei on. It lint$ on in lute hart lwcaww Erickum and othe downumn lxlsiness in+rrsa u hard to keep thin$ AMID anal fricndll•. jcrry and Mamba, ciallc %werdwitt. at the [W w" +Id Nbilaics -Ita, hauil jet dit :ire to o it pharowcy f1 WS i4ib as a $*mfrs eW in u. _.._ tlinix-alxntis t +s a vitlage iuirhet knew tvfore they Wert 410esrtf a ' I ' liblille CoI111111115t spnf on main street for their tswr► $totre. Civet ttre trans, lem alai$ Muiba have neA only been accepted in L;kr,•lle Nit her n uic signiticant contributions to their adapted City-'s ccrmincr- rial And ciVk life. In aclditi irl to uperating a siwccssfal tlnig taste « jerry started tlsr Rem fnnklin,which bii soft,'ktw. stall it wnkih rtstr dct vs wothh of then cinig wirc, Ai*i jars• %% a f wtuler of wwlt civi,: institutioiw as tlrc duintbcr dcon►tihcvc. htvsith haxlsall aml the anntral staninrr festital he nstnrel die txintirutha 41' gWlift, Or Yana C3.9 *. 64 ihtwt, " t tivv xir atah'► t +d' rt ll`ts2 iN on tt* ao:orm- pli�slai�Ihrrlts oaf ,eM are# NKAnha. Who were narrreti ltsrsiressptrss,ni of rht ?+car in XW. the yvear the}' sold the Anti; *tore, which hill c - *fries t1e rickson tsane_ J .-m SI. is home txmini with ernp1mwina and COPD."Tbthem! to an ox h &w. he tpen,ds his chase at the kitchen tnlrk iWthe 60uec be and Nlariha Wilt on lake Marion in 1'1"l1. ney watch Tor are! the scrrirrris arwl Nm6 OATI,e inning antAlicr spring I7tey rentinikev atssntt dwir litric in a eor that tsas given thcrtl nintell — to whi4h they' Isavr gitvcrr tmwh hwL 'It3 been a WOO dcrfid place to false :1 r4aw ly," Martha said as wr $umd LAW new'spalwr clippingii and hoe1% that dixurnent the ferry 1 ricLwn era in 111M c to Lakmilk hcvciarsc, jctq sakl,'1 v.-As 1 owxi and de- ferniiirzrd I wcn►sltt lrsrc my own dnig stout.' fir w utsr as a pl► attnuist at 513th arld X,trat iti *ouch Mitnircaixtths when %Val - gncruii offs cd hies s frut- Sire PAck wo. free SA Awndexl. Fricksou Dnir atwl bkcas Vrmklirt, stand two doom span an the auks strett oil laivoke Avtmme.. 11. t» r:.n W,_ jests• and this Willi, M& retha oisertnd r4kkwn L nip ill drsswntrawn Lakeville im AoSust olly63.TIKI spend brae mt>rwrentiniscing aboat their yetm im balsiro ces, Q , .� jai •." l 1 U VIII .� E RA �'.fs 4 14 '. 111