Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
06-22-10
City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, June 22,201o, 4:30 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order 2. Approve April 27, 2010 meeting minutes 3. Review Process and Schedule for Completing the 2011 -2013 Strategic Plan for Economic Development 4. Director's Report 5. Adjourn Attachments: May 2010 Building Permit Report May 2010 Foreclosure Report from the Dakota County CDA "An end in sight to Minnesota hiring slowdown ? ", StarTribune.com, June 17 th , 2010 "ConAgra moving 99 jobs from Twin Cities ", Minneapolis — St. Paul Business Journal, June 11, 2010 "MnDOT official wants answers on Elk Run site ", Finance & Commerce, June 11, 2010 "Building momentum — Stimulus projects, housing fuel construction pickup ", Finance & Commerce, May 25, 2010 City of Lakeville Economic Development Commission Meeting Minutes April 27, 2010 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Longie, Tushie, Vlasak, Schubert, Emond, Brantly, Erickson. Members Absent: Comms. Starfield, Smith. Others Present: David Olson, Community & Economic Development Director; Adam Kienberger, Economic Development Specialist; Mikaela Huot, Springsted Inc. 1. Call Meeting to Order Chair Matasosky called the meeting to order at 4:30 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve March 23, 2010 Meeting Minutes Motion 10.06 Comms. Tushie / Emond moved to approve the minutes of the March 23, 2010 meeting as presented. Motion carried unanimously. 3. Presentation of City Financial Tools for Business Assistance by Mikaela Huot of Springsted Inca Dave Olson introduced the City's financial consultant Mikaela Huot from Springsted Inc. As suggested at last month's EDC meeting, Ms. Huot was present to discuss financial assistance tools available to the City of Lakeville and how they can be utilized for a business assistance project. Ms. Huot reviewed a PowerPoint presentation on Tax Increment Financing (TIF) and Tax Abatement. The presentation was distributed to the EDC. Chair Matasosky asked about opportunities to utilize older existing TIF districts in the City. Mr. Olson explained the restrictions in place governing the older districts in Lakeville. Ms. Huot clarified the uses of TIF that are available and how the recent "Jobs bill" allows for some temporary authority to use tax increment dollars. Ms. Huot continued by describing tax abatement and how it differs from TIF. Economic Development Commission Meeting Minutes April 27, 2010 Comm. Tushie asked who determines the taxes of eligible parcels for tax abatement and what the City's tax portion is. Ms. Huot responded that the City would do a tax capacity analysis and then estimate the tax amount that would be generated by the parcel. The City would then add that amount to its City tax levy to be able to provide a benefit to the abated parcel. Mr. Mielke added that the City's portion of a business's property taxes is approximately 15 %. Mr. Olson also added that unlike TIF, the County and school district can "opt out" of participating in the tax abatement thus decreasing ' the overall benefit to the business. Mr. Mielke clarified that TIF can capture new revenues and tax abatement can capture existing revenues to complete a specific goal or public purpose. Comm. Tushie noted that it would tough to .abate the taxes of an existing property because the subsidy would have to be spread to - - the rest of the community. Chair Matasosky asked if there - any other business financing assistance tools available at this time. Ms. Huot mentioned - that there are- several including conduit financing, recovery zone facility bonds, housing improvementbonds, and revolving loan funds. Comm. Tushie asked if anybody is utilizing'housing revenue bonds right now. Ms. Huot respond ed-ahatthere areri't'xnany being utilized right now because private financing is difficult to secure. Mr.'Olson added that in addition to the tools Ms. Huot mentioned there some internal thins the City has flexibility on'such as development fees, 429 assessments etc. 4. Review d - and Discussion of Draft Business Assistance Policy Mr. Olson reviewed *draft business subsidy policy that outlines the items that have been discussed'at several recent EDC meetings. Some things to think about include what type of minimum wage policy should be enacted for new jobs created under business assistance. What kind of jobs should be considered for a subsidy? Chair Matasosky stated that Lakeville needs to distinguish itself in some way. He added that he likes the flexibility that category number four provides in the draft policy: I 2 Economic Development Commission Meeting Minutes April 27, 2010 Projects that enhance or increase the economic diversity of the community by attracting businesses or industries not currently located in the City. New job wage requirements will apply to any new jobs created. Mr. Mielke stated that goals can be set based on a policy like this. Comm. Tushie suggested that construction jobs be included in the policy and not have only permanent jobs count towards job creation goals. Mr. Olson noted that the recently enacted "Jobs bill" includes construction jobs as a benefit. Chair Matasosky asked why category number seven states - that additional goals need be met other than increasing tax base. Mr. Olson responded that that is a provision of the State Business S law. A business subsidy cannot be granted for th6: sole purpose of increasing talc base. Mr. Mielke cautioned that if a business subsidy .policy and goals are set too broad what do we open the door to ?'. If a. subsidy was :.given to a new gas station would every new gas station then be eligible fore business subsidy? Mr. Mielke continued by, stating that the City of Chanhassen opted to provide a business subsidy to euery - new business came to town. Because of this over one -third of the City's tax base was tied up 'in subsidies. Chair Matasosky.added that should:be a way to measure a project's return on investment (ROI). After TIF.ends,figure out how much money the business will bring to the City -in. taxes.. He suggested that:.:there should be a formula to establish the max percentage of the tax base that should be tied up in subsidy. Maybe this could be - : a" early review and a formula used to create a cap. Comm. Tushie asked' what wi3uld happen if sometime in the year the City was already. to the "cap ",and a major project came along that couldn't be assisted. Mr. Mielke'-responded that every project will provide some sort of ROI including gas stations. He asked- the EDC what sort of thresholds should be established to measure what the =RO1 should be. There is a cost to bringing a business to the City. Mr. Mielke continued by stating that business subsidies can also be politically difficult because if you give it to one business, other businesses are going to expect the same thing. Mr. Mielke concluded that goals will first have to be established so that there is something to move towards. He added that the draft policy should be brought forward to the City Council for discussion at either a work session or a joint work session with the EDC. Next steps will be established at that time. 3 Economic Development Commission Meeting Minutes April 27, 2010 Motion 10.07 Comms. Tushie /Schubert moved to forward the draft business subsidy policy to the City Council for further discussion. Motion carried unanimously. 5. Director's Report Mr. Olson reviewed the Director's Report. 6. Adjourn Chair Matasosky adjourned the meeting at 5:50 p.m. Respectfully submitted by: Attested to: Adam Kienberger, Economic Development Specialist 1 R. T. Brantly, Secretary Item No, 00, City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David Olson, Community & Economic Development Director!', Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: June 18, 2010 Subject: Outline of the Process and Schedule for Completing the 2011 -2013 Strategic Plan for Economic Development The EDC is scheduled to begin work on the 2011 -2013 Strategic Plan for Economic Development this summer. As part of the preparation of the last two strategic plans, a significant issues questionnaire was completed by both EDC and City Council members and the City Administrator. During the preparation of the previous two strategic plans, a summary of the results of these questionnaires were used as the outline for the discussions during the planning retreat held by the EDC and facilitated by Todd Rapp of Himle Horner. The list of significant issues were prioritized by the EDC into critical issues which were then used to formulate goals and desired outcomes for the next Strategic Plan for Economic Development. Included in the questionnaire will be a section to comment on the goals and outcomes from the previous Strategic Plan and to what extent these goals and outcomes were achieved. The goal is to finalize the questionnaire in the next two weeks, distribute it to City Council and EDC members by July 9 and have them completed and turned in July 30 1h . In addition to determining the critical issues and corresponding goals and desired outcomes, the EDC will be asked to review the City's vision and mission statement as they pertain to economic development. Staff is also suggesting that a SWOT (Strengths, Weaknesses, Opportunities, and Threats) type of process be part of the planning retreat this year. Given the significant changes in economic conditions since the last Strategic Plan was completed, we feel it would be appropriate go through this type of process. All of these discussions will be held during the planning retreat in August to be facilitated by Todd Rapp. Enclosed is a draft schedule for the completion of the Strategic Plan. A couple of the specific dates still need to be confirmed including the Strategic Planning Retreat in August. In previous years we have scheduled the retreat to start at approximately 4:00 p.m. and last a maximum of four hours with a break for dinner which would be brought in. Action Requested: Staff would appreciate comments and /or suggestions from EDC members regarding both the proposed process and schedule for the strategic plan update. Preparation of 2011— 2013 Strategic Plan for Economic Development Schedule June 22 EDC reviews process and schedule and determines format and content for questionnaire of significant issues. July City Council and EDC Members and City Administrator (No EDC mtg) complete significant issues questionnaire August EDC conducts Strategic Planning Retreat (Date TBD) (Facilitated by Todd Rapp of Himle Horner) Sept. 28 EDC reviews results of Planning Retreat Including Vision, Mission Statement, Goals and Outcomes Oct. 25 Joint work session with City Council (Facilitated by Todd Rapp ?) Nov. 23 EDC gives final approval of new Strategic Plan and recommends to City Council Dec. 6 Council approves final plan or 20 r ��N 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: June 18, 2010 Subject: June Director's Report The following is the Director's Report for June of 2010. Building Permit Report The City issued building permits with a total valuation of $23,557,573 through the end of May. This compares to a total valuation of $26,338,001 during the same period last year. The City total valuation of commercial and industrial permits through May was $1,287,000 which compares to $1,398,500 through May of last yea r. The City also issued permits for 65 single family homes in May with a total valuation of $17,747,000. This compares to permits for 40 single family homes with a total valuation of $11,043,000 May of last year. Development Updates The City has issued a building permit for a 4,359 square foot Lakeville Orthodontics office building in TimberCrest to be located just south of Best Buy. Two new Lakeville restaurants are scheduled to open by July 1S The Sawa Japan Steakhouse and Sushi restaurant is located in TimberCrest in the same building as Buffalo Wild Wings and is planning to open by July 1 The City Council is scheduled to act on their license at their June 21 meeting. Paradise Pizza and Grill located in the Hewitt building in Downtown and is scheduled to be open by July 1 This restaurant is going into the former Kazolly's space and will be primarily a take -out restaurant with a limited amount of seating. Business Spotlights and Retention Visists The new Malt -O -Meal Technical Center located at 20802 Kensington Boulevard and the spotlighted business at the June 7 th City Council meeting. A copy of the business summary that was presented to the City Council is attached. On April 29 Jim Emond and I made a business retention visit to the Holiday Inn and Suites located at 20800 Kenrick Avenue. We met with Jamie Dahlen, Director of Sales. It was a very informative meeting and Jamie indicated that business travel is starting to pick up again. She did indicate that minimum wage law has a major impact particularly on the restaurant. She indicated that Minnesota is one of the few states that does not provide a tip credit. More business spotlights and visits are being scheduled over the summer. Staff will be sending out the dates when they have been scheduled to solicit EDC volunteers. Foreclosure Update Attached is the monthly foreclosure summary for Dakota County as provided by the Dakota County CDA. There were a total of 31 Sheriff Sales in Lakeville in May. Foreclosure rates are up compared to the same period last year. There have been a total of 143 Sheriff's Sales in Lakeville through May of this year compared to 257 for the entire year in 2009. City Inspection staff are currently monitoring approximately 80 vacant and /or damaged homes in Lakeville. Resident and Business Surveys The firm of Decision Resources is currently conducting a survey of Lakeville residents and a separate survey of Lakeville businesses. Preliminary results from both surveys are expected to be presented to the City Council at their June 28 Work Session. The results will be forwarded to the EDC after they have been reviewed by the City Council. Recommended Amendments to Business Assistance Policy The City Council will be considering the EDCs recommendations regarding an amended Business Assistance Policy at their July 28 Work Session. I will be in contact with EDC members prior to this meeting to confirm that we will have representatives of the EDC in attendance at this meeting. IrCYon 0 man NEWS from the City of Lakeville FOR IMMEDIATE RELEASE June 10, 2010 CONTACT: David Olson, Director of Community & Economic Development, 952 -985 -4420 Malt -O -Meal Company recognized by City Council The Lakeville City Council honored the Malt -O -Meal Company, Inc. with the "Spotlight on Business" recognition at the June 7 Council meeting. Vice President of Business Development, Paul Holzhueter was present to accept the honor. The Spotlight on Business program is designed to recognize new and existing commercial and industrial businesses in the Lakeville community. The program is also designed to emphasize the tax and employment benefits that business and industry provide to the community. Malt -O -Meal Company is a leading manufacturer of hot and cold cereals and opened their Lakeville Technical Center at 20802 Kensington Boulevard in the Fairfield Business Campus last December. This building was the former Hearth & Home Technologies location and was extensively remodeled to meet Malt -O- Meal's needs. Malt -O -Meal was founded in 1919 and originally manufactured hot wheat cereal. Today Malt -O -Meal is the largest family -owned cereal manufacturer in the country and currently employs 1,700 people in several states. This Lakeville location includes a variety of departments ranging from Product Excellence & Innovation to Food Hygiene, Consumer Affairs, Business Development, Engineering, Finance and Malt- 0-Meal Excellence. This is their largest corporate office and the City looks forward to possible future expansion of Malt -O- Meal's operations in Lakeville. Malt -O -Meal provides a substantial job and tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of over $5 million to their property. Based on current tax capacity rates, this market value will result in an estimated contribution of just under $200,000 in local property taxes going to support the City, Dakota County, and Independent School District 194 in 2010. In addition to the tax base, Malt -O -Meal currently employs 200 people in Lakeville, making them the fourth largest private employer in the City. -30- C] a �n v, x ti r G� G� to d d m to a a a n a d a c b � a I, co co 0 0 Q e e a M o 0 o c cc co n a n? a y $ ° co n a a° Ct1 = O O COD ono O O ►. n a, "p (D a v' h E' 7 O• w k •.2. N 0 N n O iS N E �' ° as oy on o 0 a O . w x a c r o a c �. �. C a a o a C7 �� d � _ o� a o .r o � o �° aaa R .. B O c CD Cl. cc a a. c = �• CD ID G, 1 N C H ti Q• C (D j ►- N I--• A N � �- N cc w Oo c n w ^^777 �O 01 w J W N w CN vA J w J Q\ A —1 w \D 00 w ON O O\ LA N OD O A O Oo O J Ciy w Oo N N �O A 9c O A 0 0 CA Cl N O O O CA J cA -.l cA O f A O N 0 0 0 to C C to C 0 to J J cn N O O cc O Vi O O O O cn O cn O O O O cA 0 0 0 0 0 0 0 to O O O cn LA O CA O O N 70 O � cA �- c„ --1 _ W CA . - , r-r r-+ W �O J A --1 C . A r O CA W CA A jc 00 - PO A N t1i CA 00 In pa .-• oo O LA C C C C O > N �O O 0', O O O O O O O O O O O O O 0 0 0 0 0 C 0 0 0 0 0 O O O O O O O N O PO 0 0 0 0 0 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 C p 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 Q O O O O O O O O O O O O O O O O z ro M..i N z eD W lJ 00. W A W O\ O\ 0� C O O Cn O O O O O A O O O O O O O O O O O O O O O O O O W A O O uj p O O O O O� O O O O O \C� 0 0 O O C.A O O O O O A O O O O O O O O A A .r O O O\ A t O O CA O O O W O O N J J �-• \O OO 110 Vt w i w CA A W OD A OO J A 00 O A Cn w Oo O O N O O O w O w O 0 0 w 0 O\ oo J �-• O 0 0 riy O CA a` 0 0 0 0 0 1.1 C" O O N 0 0 0 CA O O C LA CA O N tr C uj O N C O Cr1 O O LA O O O O O to O VA cc C AOL A O to O O CrJ O C w A N �O A W to N O N N ✓ ��. CA �l — O oO O C O N O O O O C O O J w O A 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 N O O 0` 0 0 0 0 0 Vt O O O O O O O M O O O O C C C O O O O O O C O O O O O O C O C C C O C C C O C O C O Q 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 z �O ro CD LA n N A ON A ii �iq N m O O W 0 0 0 0 0 0 O O O O O O O O O O O O O A 0 0 0 0 0 w C 00 0 0 w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CA O C 00 C N C C CrJ CD N O O O O O O O O O N O O O O O O O O O O O O O W O O Oo �- O a Y 'ro� y �n cn w y w w Ln �n to O O O r r x x G� rl rl rf C1 C1 n CD w :0 ^ O R G n C m `C! C p C f9 L7 F C ^+ `� 7 Oo N N < C '+, y O A� O y a o :? a B ? CD o ❑ F 77 ?: m a o B a 'U R � E o m m O va m "'3 i � O o w .. ^ O C 'C7 0 qq c y y O C3 VQ b c, CD ' '». 5 C ?; r. ta C. y y O ^ D r". fD 'rJ d P, r 'L3 O ^ °' ry ^ •, a' x 2 R :: ,.� m o 7G' A :? C m C r F a cD �. x x � R. S y.y , a n c 2. GQ v^, O n O O w C17 a : m w N C CD O O y :D Un CD fl � C G N n CL C a y -P� Cn O O\ N J O O O O O A O N �- 0 0 0 �-- r-� O w O r--� N O O O O O N O O a\ O N"C O �- t-- N �-- N In O W N -4 ? w ? W O Z to Cn N C� -] W W W W 00 W �l J w -1 C.A w 0o J O j �O O\ O O O O O Oo O IC � O O O��-;� O w 0 �O 110 O O O O O �O O O Q O 10 � O 10 O Cn O O cn Cn O O 0 0 0 0 0 a\ O O fn 0 0 0 Cn cn cn O En O CA C O O O O C O O O C O O O\ O Cn O O N w O� a, ? �t �1 � � .p •- J A C CN O J c.n O 00 C O C O C\ \D O v� cn C� U vA O O cn O O W O Cn O to O Q1 O O 0 0 0 0 0 O O O O O O O O O O O O O O O O C O O O O O C C O O C O O O C O C O cc C O O O O O O O C O O O C O coo 0 0 0 0 0 0 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 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 C C O C C 0 cc 00 O O O O O O O O O O O C C O O 0 C O O O O O O O O O O C O O O O O O O O O O O O cc O O O O O O O O O O O O O O O O O O O O O O O cc O O O O D\ Q\ O N ON cn O �n 0 0 0 0 cn N O O N O O O �I oo O �- �- .-• O N O �-+ O O O N �- O O w 0 J A w W J 00 �O W W LA 00 ON � �] Cn J 00 W W W J W J 00 �] J --t O �O oo J O w O O O O w 0 0 0 �D 0 0 Q\ Q\ O O O O O 00 to O O O �c 0 0 0 0 cn cn C O cn cn cn O O O to 0 0 0 0 0 0 0? O J N N A W W Cn J Cn GA 00 �O O O w N O O w D\ O ON O ON N O O N O J O O Jt.A O O O O O O Coco 0 0 0 0 0 cn O O O O O O O O O O O O O O O cn O O O O O C O O O O C C C C O C O O O O O G O C O O C C C C O C C O C C C C C 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 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 Cl 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 O O O O O O O 0 O 0 0 0 0 0 O O O 0 O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o C O 0 0 0 0 0 O 0 0 O O O 0 O 0 O O O O O O O O 0 O O O 0 0 O 0 O O O O O O O N O N J O O O O O O O O O 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 O C/1 V1 O O O O O O O O N O O O O O O O O O O O O O O 0 0 0 0 0 0 O N O O O O O - 0 0 0 0 O O O O O O 0 0 0 0 0 0 C O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 P O CJt O\ �O 41 C N O O O O O O Cl O O O O O O O O O O O O O I O O O IOI O O O I O I O O IO CI O O O R 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 I O C 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O w Cn N w A w W O 00 N J O O O O O O O O O O O W C!i O O O O O A a, O O O O J O O O O O O O O O O O O O O O O O O N CA CA 0 0 v� �f a s v cn ;� v v� H '0 v'o �n v� v v C7 n CD ! u' x b r n n Y C 5 x ..� A Q rr+ n �• A G ►• �. y G ° w m C �j P1 F P1 = y. O 0 0. N y V n'� y �°- d °' a p n co co co ••, • ••� a: :c a O. �co ❑ p r y co OQ O O o O is co y am y . _ p y c �' O .�.. 7 .�. 7 N ((b ° y o E F$ o m CD ° cn c° w• ° o' o w C� R 7 ti d. N C CD ° oQ r o CD v O w w 0 O O O O D\ vi 0 0 0 0 O N O 00 00 O O 00 O O A '-- O O O N v� w �- w w oo Q w_ 4� N a1 ON O Cn Cn O O ao N 0 0 0 0 O 0 0 0 O 0 0 0 C 0 0 O 0 0 0 0 0 0 cn O O vi 0 0 0 0 0 0 0 O i.n 0 0 0 0 O O O O O O O O O O O O 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 O O O O O O O - O P Do w N �-- �-- Cn 00 "1 �] W O O O O O O O O O O O O O 0 0 0 0 0 0 w J O Q, 0 0 0 0 0 0 0 t�i� v 0 0 0? O 0 0 0 O 0 0 0 O 0 0 O 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 O O O O G O O 0 0 0 O O O O O O O O 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O N O N J O O O O O O O O O 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 O C/1 V1 O O O O O O O O N O O O O O O O O O O O O O O 0 0 0 0 0 0 O N O O O O O - 0 0 0 0 O O O O O O 0 0 0 0 0 0 C O O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 P O CJt O\ �O 41 C N O O O O O O Cl O O O O O O O O O O O O O I O O O IOI O O O I O I O O IO CI O O O R 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 I O C 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O w Cn N w A w W O 00 N J O O O O O O O O O O O W C!i O O O O O A a, O O O O J O O O O O O O O O O O O O O O O O O m r. n to g - `a o o . o w 0 oo Y c. CD g 0= =. a ° o 0 Q' 0 �° ° � c n. a° N m m y a oo 11 C. 5' v 7 x �' cro ao w N 77 a. o o a o c y t c c c"o n x c U C. M � b N o c n o d T z v ° w o o Y o CD CD 0 ° "" ° ° 5 N 7 � ° Q o M . (IQ 0.. c z o Z w ao czo a CD 21 a N a N CD .'7 c c I0 to -1 �1 W A Cn N W 01 — A -1 0 01 O O W r _ A z A N J N r N N N D O W 4, 41 00 [rJ O O O O O O A O w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 to O W W O O O O C C O 0 0 00 0 En O C 'cn O O O C 0 O -4 O O O O O O N O �- O �- O O �-• 0 0 0 0 0 0 0 00 Cl O O A O O A O t� t J T b J J n N Y N A to r 00 J �-- O J t1, r J 01 A O w N �_ ' -1 -1 0� N w �0 O N 00 A IC A O •-• A Cl Oo 00 �0 O A •--• 00 N 00 O N O �O O 4, O A� O �c to �- 0 0 CrJ J 0 0 0 'cA to O to N cA �l 00 0 -4 0 0 0 0 0 to O to --1 O C O VA O �l O -1 CA t j w.. .d to O O O O O - O to O vi to O to O O O to O O O O to 0 0 0 0 0 to O to O to C n O C 0o r C �o O 00 O O � O Oo A A l r � Z a, A O O to O O 0*1 O O O O O N N to 411 01 cn A �0 ,y A 01 U A �0 J w tA a1 w J a\ A A J J r w 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 a N z 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 0 �] 0 0 0 0 O O C C O O C C O O O C C O O O C O O O 0 O C O C O O O O 0 O O O O O O O O O O O O Cl O O O O O O O O O O O O O O O O O r _ A z A N J N r N N N D O W 4, 41 00 [rJ O O O O O O A O w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 to O W W O O O O C C O 0 0 00 0 En O C 'cn O O O C 0 O -4 O O O O O O N O �- O �- O O �-• 0 0 0 0 0 0 0 00 Cl O O A O O A O t� t J T b J J n N Y N A to r 00 J �-- O J t1, r J 01 A O w N �_ ' -1 -1 0� N w �0 O N 00 O �0 to O C O 00 O J C C O O (J C -] 0 W to to O 0\ cn lJ N A O w A -1 0 0 O to 0 0 0 0 0 0 to O O O O to 0 0 0 0 0 0 0 0 0 to O to O to O O 00 O O CrJ w.. .d O C 0o r C �o O 00 O ' O Oo A A l Z a, A O O to O O 0*1 O O O O O A O a, O O O O O O 0 0 0 0 0 O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O Oo O J 0 0 0 0 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 0 �z C O N N 00 O O J 0 b r v w z 00 A N N w t c�i, O 0 A�? O O C CD CD � z C� a (D y y y' a V w r C Yom' fD Ir C ice+ b ^s a a . z a a3 n cc o =• n GQ N X n' 01 N r R � ? A w O O O J N G 00 O O O O O O O O O O U � r W, 00 w 00 O O A O �o r � N to O O O O C 0 ITI m fv y � aY fD O rn v VO fD ? r� O N O r A r O r � A ? O � O O O O O 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 N O O O O w J O O O O o0 O O O O J J O O O O O O O O O 0 0 0 0 0 Us -j cn cn cn cn vs cp rn cn 7o O O O 4�: C" t" 5 5 x = M c n (� n n a Co C CD fD o c�c y y cn v 07 CD aq -s O co C7 2 m o cro =. :1 = to o d CD C4 7 CL CD UQ CD CD 2° CD co o n x ¢ c c Cb CD w 35 CL OQ > CD C a z n' W A w N " + O1 N W r A O N— c.n W O , p N O O �• A 0 0 . W vA W —1 N -- A 00 oo �o O O �D oo 00 . . . . . . . . O C cn O O C O 'cn O C c.n c� vi v� C O C C C it C C O vi v� i� J 0 0 in C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DD 0 0 0 0 w � w O O O O O O O O O O O C O C C O O O O O O C O C O C C C 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 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 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 — O ON r A O W oo W O O O O N A "'� 01 W -4 . . ? N A w oo t1i w oo w �- �l �l - 00 O N A Oo O 00 00 O 00 v 00 "O �O O O O w r 00 O cn O O in vi C to vi 'cn O O O O O O to 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W Q "'• 00 W 0 0 0 0 0 0 0 0 0 t�ii O O O O O O O O O O O O O O O O O c1� O O O O C O O C O C O C O O C O O O C O O C O O O C O O O C O O O C 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 0 0 0 0 0 0 1 O O O I O I O O O O O I O I 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 0 0 0 0 0 0 2 t c i c O C O O O O O O O O O O O O C O O O O O O O O O O O V O V O O O O N N W O O O (OI O O O IOI O O IO O O O O O C O O O O O C W O C 0 0 0 to O O O O O G O O O O O G C C C O O C O O O O O C O O O O O O O O O O O O O O O O O C C O 0 0 0 0 0 0 0 0 0 0 J O N W N •- N W Oo O O J N J w V� N O O O O O O O O C O O O O O O O O O O O IOI O a o IOI O IOI 0 O I O O O I a= C x 3 5 x x C) C) CD Co (D o o a A C. c a m w w �. ^'"'.. n C T T '(f• T w w ti n S T T .. 3 CD .�.. C ID a 0 eb CD CD CL CD C D B B o Co aCD a �' co ' n R N w N N W v w N N .... � v tli W r W N Oo .A � O N O N�� � � O w O, O O? �--� O O J 4;- O N N O� W �+•� Vi W N �O O� O �O N W C r N�� A O 0o N O to O Do O O O O O O O O to O O O O O 0 0 vA O O O N O O \o iD iD cA C CA Cn C� 0 0 O O O O O O 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 — O O w 0 0 0 0 0 0 0 0 0 In N A 00A J w 00 O O 00 N VA J � A 00 00 J O U 00 O W O [J 00 ? 110 O, 00 O O w 4A, N O O a, O ? O N al cn w O O O O O O O O O 0 0 0 0 0 0 w •A O w 0 0 0 0 D\ O O Vi cA O O O t" "C to O O O C C O O O O O O 0 0 0 0 CD C O C> 0 0 C> C C O O CD O O O i) C O C O O O O O O O O O O O O O O O O O O O 00 O O O O O O O O O O O O O O O O O O 2 t c i c O C O O O O O O O O O O O O C O O O O O O O O O O O V O V O O O O N N W O O O (OI O O O IOI O O IO O O O O O C O O O O O C W O C 0 0 0 to O O O O O G O O O O O G C C C O O C O O O O O C O O O O O O O O O O O O O O O O O C C O 0 0 0 0 0 0 0 0 0 0 J O N W N •- N W Oo O O J N J w V� N O O O O O O O O C O O O O O O O O O O O 0 0 0 0 0 0 IOI 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O C C O O C C C O O O O O O O O O O O Cn W W J� 00 W W �l C O cn cn to Oo is vi O O O O O O W O O O \O W r W CA � 00 �0 00 J O O C O O C O C O 0 0 0 0 0 0 0 0 0 J A in r–� D1 V W O O O O O 0 0 0 0 0 0 0 0 0 0C"=)000000 000000000 IOI O IOI O IOI 0 O I O O O I O O I O O O O O O O O O C C O O C C C O O O O O O O O O O O Cn W W J� 00 W W �l C O cn cn to Oo is vi O O O O O O W O O O \O W r W CA � 00 �0 00 J O O C O O C O C O 0 0 0 0 0 0 0 0 0 J A in r–� D1 V W O O O O O 0 0 0 0 0 0 0 0 0 0C"=)000000 000000000 C fD O C O v � � O CC C d O 00 y O\ r+ W N N N Oi O O O O O O O O C O O O O O C O O O � J O O O C O O O O O O O O O O O C C O O CDA Dakota County Community Development Agency 0960000*000*0000000000 To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: June 9, 2010 Re: Foreclosure Update Neighborhood Stabilization Program (NSP) Update HOME OWNERSHIP W P& More than one year ago, Dakota County received a direct NSP allocation of $2,765,991 from HUD, and the CDA received a competitive NSP allocation of $1,017,930 from MHFA. The information below relates to the direct HUD allocation. With those funds, the CDA has (1) acquired 14 properties to land bank with the blighted homes being demolished, (2) purchased 5 units to rehab for rental, and (3) provided 41 homebuyers with financing assistance to purchase vacant, foreclosed homes. The following is the April NSP Snapshot Report from HUD for Dakota County: Additional Information from recipients of direct NSP funding in Minnesota: Location Dakota County National Average NSP funds committed 86.0 percent 50.4 percent NSP funds expended 73.9 percent 21.7 percent NSP committed for 25% low 20.4 percent 13.9 percent income set -aside 58.7 percent 22.5 percent NSP expended for 25% low 8.8 percent 5.2 percent income set -aside 58.7 percent 31.5 percent Overall performance score 116.4 percent 26.6 percent for meeting goal Additional Information from recipients of direct NSP funding in Minnesota: Location Committed Expended Anoka County 70.0 percent 51.4 percent Dakota County 86.0 percent 73.9 percent Hennepin County 49.0 percent 18.3 percent Minneapolis 58.7 percent 22.5 percent St. Paul 70.2 percent 46.0 percent State of Minnesota 58.7 percent 31.5 percent CDA Dakota County Community Development Agency 0969009600909#00*00009 Dakota County Stats — May 2010 • # of Sheriff Sales in May — 191 (compared to 164 in May 2009) HOME OWNERSHI P cowwiol • Total Sheriff Sales for 2010 — 912 (compared to 687 in Jan. -May, 2009) • # of Notices of Pendency Filed in May — 337 • Total Notices of Pendency Filed for 2010 — 1,587 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 httl2://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: • Twin Cities' pre - foreclosure notice activity increased 25 percent in the first quarter of 2010 compared to the same time in 2009. Although not all pre - foreclosure notices result in a sheriff sale, the increase may indicate an elevated number of foreclosures for 2010.- • The rate of foreclosures in Q I of 2010 was especially high in suburban counties like Dakota and Washington. Mortgage delinquency data suggests that future foreclosures will be less concentrated in the urban areas of Minneapolis and St. Paul, and more prominent in suburban and outer ring counties. • Recently, the Minnesota Home Ownership Center received funds to aid homeowners displaced by foreclosure. The CDA is one of the metro area organizations to administer the grant program, which provides assistance for moving expenses. A complete list of participating organizations and grantee qualifications can be found at www.hocmn.org, or call the CDA's foreclosure intake line at 651 -675 -4555 for more information. • An article that features some metro -area renters who are faced with what to do when their landlord stops paying the mortgage. If you have any concerns, please call me at (651) 675 -4464 or send me an e-mail at drogness (a)dakotacda.state.mn.us 0. %D O T co N �vlj O zW 111 ° N z 4 0 C • • N V • %D O T co N %D Q • M 111 O% N O C • • N N O • N N • M C ^ � Q • L N > O `-' • w O V 40 E E O O M 111 a V . 3 (d V H M^ w 4 5� M o N o cn w i d L � s u Vf O� %D O T co N %D M M 111 O% N O N N N M N N O M ^ ao N O O M 111 N 00 M V M^ V M N v d O 0 Z V 0 41 d tko a C 1 M E m m N ^ a N N N— N N M M N N N d^ LL M N I� �o CO N M CD �p — M r N co r*. N N_ N M O a 41 dQ N .2p 3 y to d > •> = tv it 0 4i (N y V J ° c cd E c \/ C �° 0 4j ul is Q F- QmWLL= do i > =J�ccN�H >G A 3 0 O d L fd a V 3 E C O d .G N L ld d E c U d �n L N m O O N U 0 � L t6 +' Qo N o N u u a� N C O V G1 C C U� d Lfl t h %0 G1 C L ' .o O d = E V O L- 2: O N tw Q 0 Q U 4 L Y 7 � O o cd C O a� m E5 o c N O E O U - >` 2 E Z © • U co • %D C N cu • N Q1 N Q • C% O, • O CDv • Ln c C C • 1l. 0. O • H • > • ba C > ._ -- 2 . LL UO u E C . O • p U . C CL 4- O 0 N_ N N 00 O Z ON co O� %D N N M N co N so C% O, p O CDv C Ln N 1l. N Ln O� N NN T -- ap N N_ N N 00 n 00 M N- N eh 1- en N Ln ZD Ln 'D OD Lrf C N v d O Z u O dd a d N tko Q 3 C m Ln N N N N O N M M M N 00 O� 00 Ln N tl' O M to L d' r■1 ^ M M N t_7 'O Cl N ^ U. N N �M N- N Ln - co � N co y s d0 � ° > 2 c a•- V �•� 41 __ d0� 0 4J CNN 4J V J ° C ° 4J IA Q d0 i W > X y in ° O Qm W U. = =J to C 41 3 a� L VI N N L � O o .°- Z c c � E -0 o e� L N H � u O N d L � 7 gn E O = L y °U N yj L fd O C V u d c � O U a S 41 O O d C itl C o o d Y C Q 0 A N ^ N C C c0 .— E u c d a) ea u�o N L CL O `•' E O fd V O �Z w o L � U� C d -o c N i O d a) N O o O N 3 N u Z + ' H O O Z °' N N LU Z X LL- CA * N u u N C O V c 0 O U V� n. Ln L %D N C1 — C ` .D O " W E u = o ao rd U ^° a, ig O O (d C O L • fd N_ E 7 O C N 0 E I- 0 LL Even more foreclosures possible in 2010 - TwinCities.com Page 1 of 1 Even more foreclosures possible in 2010 By Christopher Snowbeck csnowbeck@pioneerpress.com Updated: 05/03/2010 09:26:20 PM CDT The Twin Cities housing market is likely to see an elevated number of bank foreclosures in 2010. That's one take -away message from a report Monday by the Minnesota Home Ownership Center, which said pre - foreclosure notices from mortgage service companies to troubled borrowers were up about 25 percent in the Twin Cities during the first quarter compared with the same period last year. State law requires banks to send such notices to borrowers and also notify nonprofit groups that provide foreclosure prevention counseling. The nonprofit groups report numbers to the Minnesota Home Ownership Center, which coordinates a statewide network of free foreclosure counselors. Lenders issued 11,047 pre - foreclosure notices to Twin Cities homeowners during the first three months of this year, up from 8,846 during the comparable period in 2009, according to the St. Paul -based group. A similar increase was seen statewide. "We may be in danger of 2010 being at least as bad as 2009 in terms of foreclosures," said Ed Nelson, spokesman for the Home Ownership Center. There's also a chance, he added, that this year's totals could match those in 2008 "which was our record breaking year." The Twin Cities market saw 17,264 bank foreclosures in 2008, according to HousingLink, a Minneapolis -based nonprofit. The total fell back in 2009 to 14,459. Not every pre - foreclosure notice will lead to a foreclosure sale, said Nelson. Some borrowers who fall behind will catch up on mortgage payments; in other cases, lenders might agree to mortgage modifications or short sales that prevent a foreclosure. Foreclosure totals in Hennepin, Anoka, Dakota and Washington counties during the first quarter were up a little bit compared with 2009, wrote Aaron Dickinson, a real estate agent with Edina Realty, in a recent blog posting on foreclosure trends. Bank foreclosures have had a large impact on the housing market in recent years as a surge of low - priced foreclosure homes has depressed median sale prices in the Twin Cities. But the impact of current pre - foreclosure notices and sales likely will stretch into 2011, Dickinson wrote. "A lot of the increasing delinquencies are sitting in limbo in the period prior to a (foreclosure) sale," Dickinson wrote in a blog posting last month. "This leads to a backlog of 'shadow inventory' that someday will show itself." Christopher Snowbeck can be reached at 651 -228- 5479. Print Powered By namics httD:/ /www.twincities.com /business /ci 15010459 5/5/2010 Suburbs, rural Minnesota bear brunt of foreclosure rebound - TwinCities.com Page 1 of 3 Suburbs, rural Minnesota bear brunt of foreclosure rebound By Christopher Snowbeck csnowbeck @pioneerpress.com Updated: 05/0512010 12:06:09 AM CDT Foreclosure comeback Home foreclosures in Minnesota jumped during the first quarter compared with the same period 'in 2009, The rate of increase was especially high In suburban and rural areas. By region: ByOwnY- +28.3% 7000 _._. _.... -- -__ -- .. - - - -- _ -- -- -- - - - -- tstquarter 2b09 5,0170 +21.996 4.090 3,C)DO - - +39fl96 +35.69b_ +28.496__,. +]6.69 -- -- Minnesota Metro WasNngton Dakota Anoka Ramsey Hemepir period in 2009, according to a report released Tuesday. With 6,716 foreclosures statewide, the tally between January and March was the biggest quarterly number in Minnesota since 2008 — the state's worst year for foreclosures, according to the report from HousingLink, a Minneapolis -based nonprofit that studies housing issues. The rate of increase was especially high in suburban counties such as Washington and Dakota, a s well as in counties beyond the metro area. While housing experts said they had expected the suburban tinge to the most recent foreclosure numbers, they indicated the magnitude of the reported jump was a concern. That's because the local housing market is just beginning to stabilize after years of median price declines due to fire -sale prices in foreclosed homes. "This is a huge jump in Minnesota foreclosures, even somewhat worse than I imagined," said Scott Anderson, an economist in Minneapolis with Wells Fargo Securities. "We have been expecting a jump in foreclosures in Source Kwsino ink 2010 ... but thought that the improved Nate: Metro area includes Anoka. carver, DAM. Hanne unemployment rate in the state and revamped pin, Ramsey, Scott and Wastungtoncomtms. PIONEER PRESS mortgage modification programs would have at least Foreclosures are making a comeback in Minnesota. And this time, the fastest growth might be in homes located by shopping malls, smaller towns and docks at the lake — not those at the urban centers of the Twin Cities. Foreclosures in the first three months increased by 28 percent in Minnesota compared with the same tempered some of the increases." "if these foreclosure trends hold for the rest of the year, home price declines for the Twin Cities could be at the higher end of our forecast range, closer to 5 percent over the next 12 months," Anderson added. Print Powered By l_ I I- ormatuynamics T bttn - / /www.twincities.com/hreaking- news /ci 15014129? TAT )TD= I;earcb- www.twincities.co_._ 5/7/2010 Suburbs, rural Minnesota bear brunt of foreclosure rebound - TwinCities.com Page 2 of 3 The HousingLink numbers show that Hennepin — the state's most populous county — again led the way during the first quarter with 1,540 foreclosures, followed by Ramsey County with 675. The county totals grew by 14 percent and 17 percent respectively compared with numbers from the same period in 2009. In many other parts of the state, however, the growth rate was much higher. Washington and Dakota counties, for example, reported first quarter foreclosure totals that were more than one -third greater than numbers from 2009. And beyond the seven - county metro area, greater Minnesota saw foreclosures grow by 39 percent, from 1,920 in the first quarter of 2009 to 2,675 this year. "A couple of years ago, the foreclosure crisis was fueled a lot more by subprime (mortgages) and questionable lending /borrowing practices, which was a little more of an urban /metro phenomenon," said Dan Hylton, a research manager with HousingLink. "Now it is being driven a lot more by the broader economy (and) unemployment, which hits more evenly across all geographies." That includes what Hylton called "lake country," as Cass and Itasca counties saw their first- quarter numbers double; St. Louis County also saw a large increase. "Of course, this is all relative," Hylton added, "since the numbers have been in the 'historically high' range for both geographies over that entire span." During the first quarter of 2009, foreclosure totals eased as many mortgage service companies stopped taking homes while the government finalized a program to promote alternatives to fore closure. Foreclosure tallies in Minnesota have increased every quarter since, and the latest numbers clearly suggest the foreclosure crisis is moving into more of a suburban phase, said Ed Nelson, spokesman with the Minnesota Home Ownership Center. "What we have been forecasting is ... the next wave would hit the outer ring suburbs and exurban areas," Nelson said. "This report shows that." Others said the urban -to- suburban shift likely is coming but might not be here yet. John Patterson, a researcher with the Minnesota Housing Finance Agency, pointed out that Ramsey County is the state's most urban county. But Ramsey County saw an above - average increase in foreclosure sales between the fourth quarter of 2009 and the first quarter this year, Patterson said. Mortgage delinquency data suggests that future foreclosures will, indeed, be less concentrated in the urban core of Minneapolis and St. Paul and more prominent in the suburbs and outer ring counties, Patterson said. But what this means for those communities, he said, is unclear. Foreclosed homes in the far -out suburbs might be more attractive to buyers — and therefore not see such dramatic price declines — because of the relative economic strength of the neighborhoods. "They may be able to withstand the shock of additional foreclosures better than North Minneapolis and the East Side of St. Paul withstood the first wave of foreclosures," Patterson said. Christopher Snowbeck can be reached at 651 -228- Print Powered By t 912 tt c - amics J httD : / /www.twincities.com/breakina- news /ci 15014129? IADID = Search- www.twincities.co... 5/7/2010 http: / /www.startribune.com/ lifestyle /yourmoney /93144099.html ?page =2 &c =y Page 1 of 2 L FIM f Vl1V__1.a#XK1Jff Finding a home in Minnesota after foreclosure For many families, a foreclosure ends their mortgage woes, but plenty of financial troubles remain. Unemployment. Other debts. And the critical question of where to live after the sheriffs sale. As the foreclosure crisis continues to wind its way through communities nationwide, nonprofit groups are focusing on how to help former homeowners pick up the pieces. With $125,000 in funds from the St. Paul Foundation, the Minnesota Home Ownership Center introduced grants for families in the east metro struggling to pay for moving costs, security deposits and other housing costs. The program was expanded metro - wide in March with a $90,000 grant from the Target Foundation. The maximum grant available is $3,500 and the money is available on a first -come, first- served basis until it runs out. But so far, only 20 or so families have used the program to help secure stable housing. Why so few, when data out this week show there were 23,019 foreclosures in Minnesota last year, and 6,716 in the first quarter of 2010? It's likely that many who could benefit from the program don't know this money is out there. Displaced homeowners tend to be hard to reach. "People like to keep things private, so it's been hard for them to find out about us," Nicola Viana, a homeownership specialist with the Washington County Housing and Redevelopment Authority, said. Then there's the pride factor. Many don't want to ask for handouts. No one who has received a grant would speak to me for this column. Foreclosure prevention counselors paint a picture of a program that serves households -- many with children -- dealing with job losses, death or illnesses, or relationship breakups that make once - affordable housing payments unmanageable. The grant helps them move away and move on. If they don't know someone with a truck, they use the grant to rent one. They take the money to help with three months of rent payments. The funds become a security deposit. The latter use is very common. Because a foreclosure damages a homeowner's credit -- with scores dropping by as much as 140 points, according to a study by VantageScore -- landlords often require hefty security Print Powered By anarnics" � httn- / / www_ctarti ihune_com /temnlates /fdcn ?1273499521079 5/10/2010 http: / /www. startribune.com/ lifestyle /younnoney /93144099.html ?page =2 &c =y Page 2 of 2 deposits from the new renters. Viana has seen landlords requiring $5,000 down before handing over the keys. Could there be a silver lining to the unused funds? Ryan Allen, assistant professor at the Humphrey Institute of Public Affairs at the University of Minnesota, has been studying where people land after foreclosure. He emphasizes that his sample size is very small and concentrated on Spanish- speaking families in Minneapolis. But he was surprised to find that many of the families were better prepared for life post - foreclosure than he'd predicted. He credits the fact that in Minnesota, families can typically stay in their house for six months after the sheriffs sale takes place for giving them "time to plan and to save money and to pay down debt." If families were able to save every penny they would have spent on a mortgage, they could be ready to stand on their own once it's time to leave their property. Sadly, counselors say that there are those families who can't afford food, medicine and other bills -- even without a mortgage. Rent is out of the question. These are the people who can't qualify for these housing funds because they're still too poor. Grantees must prove they have a workable budget. When they don't, that's when families have to double up -- moving in with parents or siblings or friends. If they have nobody to turn to, a shelter may be their only option. For some, only a recovering job market, or time to pay off outstanding debts, or bankruptcy will get them out of their fix. While demand has been slow at first, Julie Gugin, executive director of the Minnesota Home Ownership Center, expects funding to run out this year, as the foreclosure crisis lumbers on and word about the money spreads. For a list of qualifications and information on how to apply, visit www. hocmn.org or call 651 -659 -9336. Information with a national scope about stabilizing families after foreclosure can be found at www.foreclosure - response.org -- a site run by the Center for Housing Policy. Kara McGuire • 612- 673 -7293 Print Powered By httr):// www .startribune.com/temDlates /fdcn? 1273499521078 5/10/2010 When tenants pay but owners don't - TwinCities.com TwinCitiesecom Page 1 of 4 When tenants pay but owners don't By Bob Shaw bshaw @pioneerpress.com agents say it's easier to sell rental property if all tenants are gone. "There is no sense in kicking us out. This would be another abandoned house," said Benson, 31, standing amid cardboardboxes in his living room. "If we left, you would have meth heads breaking in Updated: 05/24/2010 09:21:40 AM CDT and stealing copper pipes," he said. "That is the last thing St. Paul needs." Benson and his wife, Cynthia, are part of a new wrinkle in Minnesota's housing crisis. Most federal and state bailouts are aimed at homeowner foreclosures — yet the number of landlord foreclosures has been soaring as well. And when landlords go broke, innocent renters get evicted. Gary Benson is the perfect renter. He's never been late on a payment. He keeps his St. Paul house and yard clean. He spends his own money making repairs. But perfect isn't good enough. His family soon will be forced to move out — not for anything he did wrong, but because his landlord didn't pay the mortgage. The house must be sold and real estate Calls about such evictions to the tenant advocacy group HOME Line multiplied tenfold between 2006 and 2008. Real estate agents say landlord foreclosures have at least doubled in two years. HOME Line attorney Matt Eichenlaub once assumed that new property owners would want an unbroken series of payments from renters. "A lot of people win when a tenant stays in a house," he said. "You get a house sitter and a monthly payment. There is no boarded -up abandoned building." But banks see things differently. They are drowning in unwanted properties from walk -away landlords, said Joe Witt, president of the Minnesota Bankers Association. He said many landlords see rental properties as investments that must pay returns. But if the value of Print Powered By . Forma - Lanamics" httn: / /www_twincities.com /ci 15147999 ?nclick check] 5/25/2010 Charity and Gary Benson talk with a reporter at their home in St. Paul, Minn., on Wednesday, May 19, 2010. The couple, who have never missed a rent payment, have yet to fully unpack their things after learning that they may be evicted. (Pioneer Press: Ben Garvin) When tenants pay but owners don't - TwinCities.com TwinCit'iesecom Page 2 of 4 the units fall and the properties lose money, landlords often abandon them. By the time banks step in to clean up the mess, Witt said, they often have waited a year without payments. "Everyone wants to dump on banks, but banks did not create this situation," he said. Banks hate becoming accidental landlords, said HOME Line lawyer Eichenlaub. They aren't equipped to deal with late rent checks, bad plumbing, leaky roofs or liability. Banks are forced to sell large numbers of rental properties, quickly. And that's when renters can be a problem, even if they are making payments. "Sure, (rent is) a revenue stream, but put yourself in the shoes of an investor," said Randy Burg, owner of the National Realty Guild of St. Paul, who is trying to sell the Benson house. "The tenant is the human factor that complicates things." Renters often don't want the property sold because they don't want to move. So they don't cooperate with real estate agents to show it to prospective buyers. For the same reason, they sometimes don't clean up the property. Burg said buyers often have their own plans. They might want their own tenants, with different leases. They might want to change the rental unit to an owner - occupied home. The bottom line is simple to Burg. "When it is occupied," he said, "it isn't as easy to get top dollar." Sometimes renters want to pay — but aren't allowed 0 Maurice and Trisha Buckingham began renting a duplex unit in St. Paul's North End in June 2009. The four - bedroom apartment was perfect for their four children. They paid the $900 monthly rent without fail. Then, last fall, the landlord disappeared. They can afford the rent — he is a part-time carpenter, and she earns money babysitting. But they don't know where to send their checks. That's because there is no known owner, according to one of the agents trying to sell the duplex, who didn't want her name published. The duplex will become bank property eventually, but she didn't know when. She said the Buckinghams have been difficult to work with. For example, they have not provided a requested copy of their lease. "You can only work with someone a certain amount of time," the agent said. "We have rules we have to follow." The Buckinghams say they have cooperated but feel as if no one listens. "Every time I hear something from someone, it is pretty much a threat," Maurice Buckingham said. He said known drug addicts live on his street. "We have to go, but the riffraff is able to stay," Buckingham said. "We have pretty much given up. We are going to end Print Powered By ; For - mat Dynamics° httn: / /www.twincities.com /ci 15147999 ?nclick check 5/25/2010 When tenants pay but owners don't - TwinCities.com TwinCitiesocom Page 3 of 4 up in a homeless shelter or whatever," he sighed, sitting on his porch. As he spoke, Trisha's eyes kept darting inside. She didn't want any children to hear. "I don't want them to worry," she said. Sometimes, foreclosures can make life bizarre for renters. Kathy Thompson moved into a Maplewood apartment with her family in November. A few weeks later, she returned home one day to discover her kitchen appliances were gone. It wasn't the work of a burglar — the appliances had been repossessed because the landlord missed payments. "All that stuff was brand new," she said. Without a stove, she got into the habit of bringing in take -out food for her two boys, ages 8 and 14. The family had money — she worked two jobs and was a nursing student, and her husband was a long -haul trucker. But the landlord had vanished. At the time, she said she expected to be evicted with little notice. "What if a Realtor comes and puts a lock box on the door ?" Thompson said. "Why should we get kicked out when we are paying ?" The family moved out in March and is living in St. Paul. But no one, she said, should have to go through what they did. "This shouldn't happen here," Thompson said. "This is Minnesota!" Gary and Cynthia Benson already had been hit by the more familiar type of foreclosure — they lost the home they had owned for eight years. Gary Benson filed for bankruptcy in 2008. The family rented a three - bedroom home on St. Paul's Cottage Avenue in June 2009. The landlord said he was in "negotiations," Gary Benson said. He wasn't sure what that meant. But two months later, the landlord was gone — and owed a bank $19,000. The house sold at a sheriffs auction for $73,000. That was less than half the value of a $170,000 mortgage taken by the landlord, court records show. The Bensons assumed they'd have to leave whenever they were told to — so they never unpacked. Last week, boxes were still piled up to the ceiling of their living room, ready to be moved out. The couple never has missed a rent payment. He is a machinist working in Minnetonka, and Cynthia is a claims investigator for U.S. Bank in St. Paul. Their problem is with the new owner — Freddie Mac, the federally sponsored agency that buys and sells mortgages. "No one has this mysterious Freddie Mac's number," Gary Benson said dryly. Benson wants to keep renting the house, then buy it when he qualifies for a mortgage in November. rri ni t - owerea tSy J0 i r : as 6 6 !C7 LL.ry 1 1401 1 MZ bttn://www.twincities.com/ci 15147999 ?nclick check 5/25/2010 When tenants pay but owners don't - TwinCities.com TwinCitiesecom Page 4 of 4 "They will get six months rent out of me, and the Realtor will get his fees. It is a win - win -win situation," he said. But real estate agent Burg disagreed. "If it were you and me, we could shake hands and work something out," he said. "But it is not as easy to manage as that." In good times, banks might be patient — but not now. Burg said the bank could wait, only to find out that Benson didn't qualify for a mortgage. Better to get the family to leave soon, Burg said, to sell to the first qualified buyer. Last week, the exasperated couple stood in the house that never quite became a home. "I am not perfect. I am not sitting here shining up my halo," said Gary Benson, stepping over a cat. "But people like us are getting dogged for other people's greed." Cynthia Benson said there might be other legal remedies but wilted visibly at the thought of more paperwork, hassles and delays. "I have other things to think about. Where are we going to live ?" she sighed. She lowered he voice so her 15- year -old son couldn't hear her. "I don't want to uproot him again and have him go to another school. "I just want to be stable. And if we can afford to live here, what is the problem ?" Bob Shaw can be reached at 651- 228 -5433. rrini i'owerec oy ffjo t r - Uf f € ]CI LL ryd icst i l)L;a h": / /www.twincities.com/ci 15147999 ?nclick check =l 5/25/2010 tittp://www.startnt)une.com/ business /yb:)/-bby4.ntmirpage= .5&c =y rage i of i RIMYrIT =_±x*I An end in sight to Minnesota hiring slowdown? John Peterson and Mark Engel watch intently as a new laser cutter slices through a large sheet of metal on the production floor of their Minneapolis company, Atlas Manufacturing. Sparks fly, a fitting image for the robust business activity these days for Atlas, which designs and builds custom metal products for industrial, retail and medical markets. The metal sheet is on its way to becoming a coin - changing machine destined for a car wash or laundromat. "Our backlog is up about 30 percent from last year and has never been higher," said Peterson, who acquired the 50- year -old company with Engel in 2002. It's a welcome change from the fall of 2008 when business "went off a cliff," he said. Peterson said Atlas didn't lay off workers when business hit a low point in 2009 but let its workforce dwindle through attrition to about 50 employees. So far this year Atlas has hired about 25 people, and Peterson said he's looking to add up to 10 more this year. The rebound at Atlas is mirrored by figures compiled by the Minnesota Department of Employment and Economic Development, which have shown rising manufacturing employment for four consecutive months. The state lost more than 33,000 manufacturing jobs in 2009, but this year has added 7,800 through the end of April. Small businesses such as Atlas with fewer than 250 employees make up nearly 60 percent of the state's manufacturing workforce, and they're playing a significant role in the revival. The department will report its job figures for May on Thursday, and even if manufacturing employment dips, people who work for and with small manufacturers say there are more signs that activity is perking up. "Many of our clients are telling us that their customers are starting to replenish their inventories," said Bob Kill, CEO of Enterprise Minnesota, a nonprofit organization that works with small manufacturers. Some businesses are still reluctant to hire permanent workers but are increasing the work hours of existing employees, he said. Steve Cremer said he's boosted the workforce of his business, Harmony Enterprises, from 50 to 60 since the start of the year. The company, based in Harmony, Minn., about 130 miles southwest of the Twin Cities, makes large trash compactors and ArivPrtigPm Pnt Print Powered By `� Formar.D namiss" http://www.startribune.com/templates/fdcp?1276780896532 06/17/2010 http://www.startribune.com/business/96526694.html?page=3&c--y s Page 2 of 3 balers for commercial users including big box stores, restaurants, bottling plants, and hospitals. "Some of [the demand] is coming from customers looking for green solutions to waste disposal, but it's also large corporations that had been deferring this type of investment last year," Cremer said. The business is coming from a broad range of commercial and industrial customers, he said. In addition to improved demand from existing customers, Kill said manufacturers that spent the last several months aggressively courting new business are seeing their efforts pay off. Atlas, whose metal products include retail displays and computer parts and enclosures, recently redesigned its website to make it more customer- friendly. Its laser cutter is automated and last year replaced two older cutters that had to be tended manually. "It improves our response time," Engel said of the new $1 million machine that can run all day and night. The ability to fill orders with shorter lead times has become a bigger factor in retaining and attracting customers that are still cautious about building up inventories, Engel said. One new customer previously had used a supplier in China but switched to Atlas because it was taking too long to get products by ship and cost too much to have them sent by air, he said. Kill said he's heard from other small manufacturers that have grabbed business from overseas competitors. "Transportation costs continue to go up, and that's causing more [customers] to look for regional suppliers," he said. At the same time, some Minnesota manufacturers are beginning to see their export business revive, said Dave Fiedler, past president and a board member of the Minnesota Precision Manufacturing Association. The organization represents companies that make parts for other manufacturers. Fiedler said some of the demand is coming from Asia, where manufacturers are responding to government incentive programs aimed at stimulating those foreign economies. Fiedler said his own business, Checker Machine in New Hope, makes parts for a variety of industries and is seeing renewed demand for medical and small -arms parts. "It's not a boom like 2007 and 2008, but there's definitely been an uptick," he said. Advertisement Print Powered By . Forrna,Dynamics" j httt): / /www.startribune.com /templates /fdcp? 1276780896532 06/17/2010 http: / /www.startribune.com/ business /96526694.html ?page =3 &c =y Page 3 of 3 s M IM =-I 11 The company now has 44 employees and has added nine people to its workforce this year, about half the number it trimmed in 2009, he said. Peterson said that at the start of the year he had little trouble finding qualified workers to hire at Atlas because so many were out of work. "I think some of the things we did, like investing in new equipment and reorganizing our manufacturing processes, helped us come back a little sooner than some other firms," he said. That's less true now. Peterson said one of the biggest challenges these days is finding skilled workers, because they're starting to get snapped up by other companies that also have begun hiring. Susan Feyder • 612- 673 -1723 Advertisement Powered L q http://www.startribune.com/templates/fdcp?1276780896532 06/17/2010 Friday, June 11, 2010 ConAgra moving 99 jobs from Twin Cities Minneapolis / St. Paul Business Journal - by Sam Black Staff writer ConAgra Foods Inc. is closing its snack - division headquarters in Edina and moving it to Illinois, resulting in the loss of about 99 local jobs. The company expects to move the bulk of the jobs to Naperville, Ill., and a small number to the company's headquarters in Omaha, Neb. ConAgra's snack division oversees brands such as Slim Jim, Orville Redenbacher's popcorn, David Seeds and Andy Capp's french fry snacks. From ConAgra's point of view, it's reducing total head count only by about 15 to 20 jobs due to the relocation. About 55 ConAgra sales staff will remain in the Twin Cities, calling on big customers like Minneapolis -based Target Corp. Eden Prairie -based Supervalu Inc. and Edina -based Nash Finch Co About 98 jobs will move to Naperville and 12 will go to Omaha. Roughly 10 jobs were eliminated. Susan Christensen, a ConAgra spokeswoman, declined to say how many employees would relocate. "The bulk of them got offers to transfer. Some jobs they are recruiting locally in Naperville. It didn't make sense to move everybody." The company had too much space in both Edina and Naperville, which led to the consolidation. "We had some open space and wanted to make the best use of our resources," she said, adding that many of the staff in the snack group work with ConAgra's global marketing team in Naperville. "It just made sense for them to be together." ConAgra's lease for about 80,000 square feet at the Edina office building at 7700 France Ave. S. expires in July, according to Wayne Kuykendall, a broker for the building's landlord, Edina -based Frauenshuh Cos. The sales office will move to a smaller space nearby. ConAgra is negotiating to lease about 17,000 square feet at the Northland Executive Office Center in the southeast quadrant of France Avenue and Interstate 494 in Bloomington, according to a real estate source familiar with the deal who asked not to be named because it's not final. Christensen said she wasn't sure if ConAgra considered consolidating operations in Minnesota, rather than Illinois. "The Naperville office probably has 250 people. Both are great markets and we could have gone either way, but it was just a critical -mass decision." ConAgra sent a Worker Adjustment and Retraining Notification Act (WARN) notice to the Minnesota Department of Employment and Economic Development (DEED) May 13 explaining the closure. The document said the action affects all employees and is permanent. The closure will take place in the second half of July. Jobs impacted include brand managers, fiscal analysts and executive positions such as the division's president. The president has decided not to move to Naperville and a successor has yet to be named, Christensen said. ConAgra has had an executive office in the Twin Cities since 1991, when it bought Golden Valley Microwave Foods Click here to download (PDF) a chart of Minnesota plant closings and layoffs. Layoff pace slows ConAgra's closure is one of only three "events" tallied by DEED in May. The other two were: • Berry Plastics Corp. based in Evansville, Ind., plans to close its 95- employee specialty -films plant at 8235 220th St. W. in Lakeville due to excess capacity. • HAVI Logistics based in Duisburg, Germany, is shutting down its 33- employee facility at 5320 N.E. Main St. in Fridley on June 23. Through May, there have been only 22 layoff and plant- closure events in Minnesota, compared to 75 through the same time in 2009. The number of workers affected per month has been dropping throughout 2010, to 199 in May, down from 1,189 in January. The biggest layoff of 2010 so far came when Snyder's Drug Stores laid off about 500 employees, according to DEED. A total of 2,544 workers were affected by mass closings so far this year in Minnesota, down 74 percent compared to the 9,814 workers affected in the same months during 2009. DEED uses a variety of sources to compile its "Minnesota Plant Closings and Layoff Events" document, including newspapers, WARN letters, employers, employees and service providers. sblack @bizjournals.com 1 (612) 288 -2103 All contents of this site 0 American City Business Journals Inc. All rights reserved. Finance and Commerce - MnDOT official wants answers on Elk Run site Page 1 of 2 RMIN Technology June 11, 2010 MnDOT official wants answers on Elk Run site by Arundhati Parmar Staff Writer Developer late paying taxes; part of property may be sold in foreclosure auction A senior Minnesota Department of Transportation official, dissatisfied with the level of progress on the Elk Run development in Pine Island, has asked for a meeting with the developer and the city next week The Elk Run project is a 2,325 -acre development that is supposed to include a biobusiness park, condos and a wellness community in Pine Island, which is roughly 18 miles north of Rochester. No construction has yet taken place, even though a groundbreaking for the first building was originally supposed to occur by the fourth quarter of 2008, and was later rescheduled for this spring. The developer of the project is California -based Tower Investments, which has lobbied the state to fund infrastructure improvements and build an interchange on nearby Highway 52. The Department of Employment and Economic Development has spent $1.75 million to bring water and sewer connections to the land, part of which used to be an elk farm. The Minnesota Department of Transportation (MnDOT) recently issued a request for proposals to five shortlisted contractors, one of whom will be selected to build the interchange dubbed the Elk Run interchange. It is estimated that the interchange will cost taxpayers $40 million to $45 million. The contract is expected to be awarded Sept. 2. In an interview with Finance and Commerce on Thursday, Khani Sahebjam, deputy commissioner of MnDOT, said he has asked the city administrator of Pine Island — Abraham Algadi — to schedule a meeting next week with Tower Investments, for an update about the project. "[We] have shortlisted contractors and [we] have issued RFPs [for the project], but that does not mean anything," Sahebjam said regarding the building of the Elk Run interchange. "I want to know the schedule of the [Elk Run] project. I want to know where they are with the construction of the first building. It's time for Tower to take a step." It was about two years ago when Tower Investments announced that the groundbreaking on the first building in the biobusiness park would occur by the fourth quarter of 2008. In January of this year, in a phone interview with Finance and Commerce, John Pierce, a senior vice president with the company, said that a ground breaking would occur in the spring. Published reports from the Rochester Post Bulletin in March show that Tower's local project manager Geoff Griffin said that a groundbreaking would occur soon after April 21. That has not happened. There are questions on the financial side, as well. In 2009, Tower Investments struck a partnership with G. Steven Burrill, a venture capitalist and respected biotech industry observer, to assist the process of bringing biotech companies to Elk Run. Burrill declared he would raise $1 billion for the Elk Run development, but in late 2009, at a public event, he said that money raising has been slow. On Thursday, Sahebjam said he would ask Tower and Pine Island officials on the progress of Burrill's $1 billion fund. To date, neither Burrill nor Tower Investments have shared names of the biotech companies that will ultimately become tenants in Elk Run. In May, real estate services giant CB Richard Ellis was hired by Tower Investments to find tenants for the development. Sahebjam said he intends to question Tower on that, as well. As deadlines have come and gone, some private citizens have been concerned about the state spending millions for an interchange when the developer has not reported much progress toward its goals. Two southern Minnesota residents — Mary Hartman and Kristi Rosenquist — had a private meeting with Sahebjam and several other officials from MnDOT and the Department of Employment and Economic Development (DEED) on June 3. At that meeting, DEED and MnDOT officials learned of several additional issues, including the fact that Tower Investments has not paid property taxes on some portion of the land it owns. Attempts to reach Alex Marks, one of the six members of the Marks family that runs Tower Investments, were unsuccessful. He did not return emails and a call to his Nashville office was routed to Tower's California headquarters where a woman said emailing Marks is the best way to reach him. According to documents provided by Olmsted County, Tower owes $170,512.24 in property taxes, including fines. The taxes were due May 15. Tower is currently late in making the payments, but will become delinquent in January, said Mary Callier, associate county administrator, Olmsted County. She noted that Tower was late in making payments in 2009 as well but fulfilled its obligations before the end of the year. "We will get the taxes, one way or another," Callier said. Along with state and federal dollars, Olmsted County is contributing $10 million to the roughly $45 million Elk Run interchange that MnDOT is building. http: / /www.finance- commerce .com /print.cfin ?recID =16791 06/11/2010 Finance and Commerce - MnDOT official wants answers on Elk Run site Page 2 of 2 "We have committed the money but we have not spent it yet," Callier said It's not unusual for developers to delay paying property taxes, though its not ideal, said Steven Minn, vice president at Lupe Development Partners. "I am certainly guilty of it myself," Minn said. "If cash flow is tight, who do you take care of first? You take care of the subcontractors, the bank and the condo association and then you try to pay the taxes as quickly as you can." Given that Elk Run has not started construction yet, Minn noted, it could be that the developer has made the analysis that it's better to take the tax penalty with interest because the original investment is worth more than the current value of the land. Meanwhile, it appears that a portion of the land that a couple sold to Tower Investments for Elk Run and is part of a dispute between them is headed for a sheriffs sale Friday. Elmer and Judy Stock, a now - divorced couple, filed a foreclosure notice against Tower Investments earlier this year when Tower failed to make its annual interest payments. The Stocks have a mortgage on the property, and because Tower has not made the regular interest payments, the Stocks are acting as the bank and foreclosing on the property. In a phone interview, the attorney representing Stocks said that the attorney for Tower Investments has not contacted her regarding payment and the sheriffs sale is set for 10 a.m. Friday. In an earlier interview Marks, of Tower Investments, had said via email that the Stocks are in breach of their contract with Tower, which is why Tower has not paid them. But on Thursday, Rachael Stein, the Stocks' attorney, said she does not understand those allegations. "I haven't been contacted at all or notified of any breach that would suggest that the Stocks have done anything but be in compliance," Stein said. Currently, the value of the mortgage the Stocks hold is about $6.6 million, Stein noted. Anyone who bids on that property will have to bid more than $6.6 million. 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.cfin ?recID =16791 06/11/2010 Finance and Commerce - Building momentum - Stimulus projects, housing fuel constructi... Page 1 of 2 Business News May 25. 2010 Building momentum - Stimulus projects, housing fuel construction pickup by Scott Carlson and Bill Clements Staff Writers The U.S. construction industry is picking up steam, but a complete turnaround is still a ways down the road, two prominent construction economists said Friday. The primary drivers? Stimulus - funded construction projects and single - family housing starts. "A gradual turnaround appears to be taking hold after years of construction employment declines," said Ken Simonson, chief economist for the Associated General Contractors of America. He is particularly heartened at how 29 U.S. states added construction jobs between March and April of this year, according to data from the Department of Labor's Bureau of Labor Statistics, including 17 states that had increases from February to March. "As more stimulus projects get under way and single - family housing starts pick up," Simonson said, "we are likely to see the number of states with year- over -year increases grow." Another major sign of a rebound is that total U.S. construction starts should increase by 10 percent to $457.7 billion in 2010, Robert Murray, an economist at New York -based McGraw -Hill Construction, predicted at a business seminar Friday in Bloomington. Murray's forecast for 2010 total U.S. construction starts comes in the wake of declines of 14 percent and 25 percent in such activity in 2008 and 2009, respectively. Construction starts are a leading indicator of construction spending. (In Minnesota, total construction starts fell 16 percent from 2008 to 2009, according to McGraw -Hill Construction data.) "This [2008 -09] has been a really tough period for construction," said Murray, vice president of economic affairs at McGraw -Hill Construction. But with job losses slowing, consumer spending rising again and the U.S. gross domestic product (GDP) likely to post about a 3 percent increase this year after falling 2.4 percent in 2009, the signs of a U.S. economic recovery continue to mount. "The news seems to be getting better earlier than we thought," Murray said. According to Simonson, seasonally adjusted construction employment rose from March to April in 29 states, decreased in 18 and held pat in three, plus the District of Columbia. "it is encouraging that a solid majority of states added construction jobs in April and that more states are reporting back -to -back monthly gains," Simonson said. Kansas experienced the highest monthly increase in construction jobs (8.7 percent, 5,000 jobs), followed by North Dakota (6.5 percent, 1,300 jobs), Wyoming (6.0 percent, 1,300 jobs) and Oklahoma (4.4 percent, 2,900 jobs). According to the federal data, Minnesota lost 100 jobs from March to April or just 0.1 percent. But for the year- over -year period of April 2009 to April 2010, Minnesota lost 11,400 construction jobs —or 14th - highest among the 50 states. Simonson said the number of states with year- over -year job gains rose to four, led by a jump of 8.1 percent, or 1,300 jobs, in North Dakota. The number of jobs also increased from April 2009 to April 2010 in Kansas (3,800 jobs or 6.5 percent), Alaska (100 jobs or 0.6 percent) and Arkansas (200 jobs or 0.4 percent). Simonson cautioned that the slump is far from over, however. He cited high vacancy rates, delays in passing highway and other infrastructure legislation, and declining state and local tax revenue. "Aside from temporary stimulus projects and a fragile housing market, demand for new construction remains depressed for the foreseeable future," Simonson said. "As a result, construction employment won't return to pre- downturn levels for many months." Murray expects U.S. single - family housing starts to rise about 29 percent this year, from $94.3 billion in 2009 to $121.4 billion in 2010. Year to date, single - family construction has increased 34 percent from the same period in 2009. (For the five -state Midwest region, including Minnesota, Murray expects single - family housing construction to increase 18 percent this year.) But Murray cautioned that his 2010 outlook for U.S. single - family housing looks more impressive largely because this construction sector posted drops of 39 percent and 23 percent in activity in 2008 and 2009, respectively. http:// www. fmance- commerce.com/print.cfin ?recID =16488 05/24/2010 Finance and Commerce - Building momentum - Stimulus projects, housing fuel constructi... Page 2 of 2 Meanwhile, Murray expects construction startups in the commercial and manufacturing sectors to be down again this year. He's forecasting a 5 percent decline in 2010 for commercial buildings following a 43 percent drop in 2009. Construction start-ups for manufacturing buildings fell 66 percent in 2009 and could drop another 18 percent this year, he said. 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.cfin ?recID =16488 05/24/2010