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HomeMy WebLinkAbout07-23-10J �- 6� City of Lakeville zj�n I 0i N �I 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: July 23, 2010 Subject: July Director's Report Reminder: There is no July Meeting of the EDC. The next meeting will be the Strategic Planning Work Session scheduled for Thursday, August 19 at 1:00 p.m. in City Hall The following is the Director's Report for July 2010. Recommended Amendments to Business Assistance Policy The City Council will be considering the EDC's recommendations regarding an amended Business Assistance Policy at their July 28 Work Session. Attached please find a copy of the memo that went to the City Council on this issue. Jack, Gary and Sheila will be representing the EDC at this meeting. Building Permit Report The City issued building permits with a total valuation of $28,629,907 through the end of June. This compares to a total valuation of $34,278,981 during the same period last year. The City total valuation of commercial and industrial permits through June was $1,402,000 which compares to $3,045,500 through June of last year. The City also issued permits for 76 single family homes through June with a total valuation of $20,172,000. This compares to permits for 54 single family homes with a total valuation of $14,832,000 through June of last year. Development Updates The Planning Commission at their July 22 meeting recommended approval of an Interim Use Permit for Pizza Ranch to go into the small multi- tenant building owned by HOM Furniture located in front of the store on Kenyon Avenue. Pizza Ranch will occupy 6400 square feet and Hirshfield's is an existing tenant that will occupy the remaining portion of the building. An interim use permit was required because Pizza Ranch will be utilizing a portion of the HOM Furniture store parking lot to meet their ,parking needs. Lakeville Rental Market Survey Questions were raised at the last EDC meeting regarding rental vacancy rates in Lakeville. Every year the Dakota County CDA conducts a rental market survey for all of the cities in Dakota County. Attached are the results for Lakeville from the 2010 survey. Some of the more significant survey findings were: O The overall vacancy rate for Lakeville in 2010 is 4.56% which is down from 6.49% in 2009. O Lakeville's overall average rent decreased 1.5% in 2010. O Lakeville accounts for 2.98% of the rental market in Dakota County. 17 The average rent for two- bedroom apartment is $968 Information on the rental markets in other cities in Dakota County is available on the Dakota County CDA website. Foreclosure Update Attached is the monthly foreclosure summary for Dakota County as provided by the Dakota County CDA. There were a total of 25 Sheriff Sales in Lakeville in June. Foreclosure rates are up compared to the same period last year. There have been a total of 168 Sheriff's Sales in Lakeville through June of this year compared to 106 during the first six months last year and 139 for the first six months in 2008. City Inspection staff are currently monitoring approximately 80 vacant and /or damaged homes in Lakeville. Resident and Business Surveys The firm of Decision Resources recently completed conducting a survey of Lakeville residents and a separate survey of Lakeville businesses. Preliminary results from both surveys were presented to the City Council at their June 28 Work Session. Attached is the summary of the preliminary results for the business portion of the survey that was presented. The final report will be presented to the City Council in August. 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J O O O O O O O O vi i.n O O O O O O O O C C O O O O OI O O O OI O O O N Q y y CD O G - C. d b `p' O pq O y I L O c �O O �O C N r- - 00 W cc O o0 O O O O O O O O O O O O O O O O O O C C O O O O O O O O O COO CIO OOI N N ICI 0 ? J O O O O O O O O vi i.n O O O O O O O O C C O O O O OI O O O OI O O O CDA Dakota County Community Development Agency 0*0000900*009000000009 To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: July 20, 2010 Re: Foreclosure Update H 0 �M — E`''' 4 46, OWNERSHIP L cowte&io 2010 Half Year Summary & Comparison The following summary contains notice of pendency and foreclosure activity for the first half (January — June) of 2010 in comparison to the same 6 -month time period of 2008 and 2009. Although sheriff sale numbers decreased by 23 percent from the first half of 2008 to 2009, the first half of 2010 saw an increase of 25 percent from 2009. Sheriff sales in 2010 are only about 4 percent lower than the first half of 2008, which was a record breaking year for foreclosure sales in Dakota County. West St. Paul and Lakeville both had large percent increases from the first half of 2009 at 79 and 58 percent respectively. Hastings and Rosemount had decreases between 2009 -2010. Notices of Pendency Sheriff Sales 2008 2009 2010 2008 2009 2010 Apple Valley 197 243 247 149 110 154 Burnsville 220 301 320 176 149 181 Eagan 169 263 255 135 122 139 Farmington 160 179 179 94 81 97 Hastings 77 119 103 68 52 48 IGH 87 125 111 70 47 52 Lakeville 168 295 311 139 106 168 Mendota Heights 18 31 13 11 3 6 Rosemount III 123 98 56 54 45 South St. Paul 99 155 147 100 63 89 West St. Paul 84 76 73 65 29 52 Small Cities 14 75 76 43 34 33 Total 1,404 1,985 1,933 1,106 850 1,064 Although sheriff sale numbers decreased by 23 percent from the first half of 2008 to 2009, the first half of 2010 saw an increase of 25 percent from 2009. Sheriff sales in 2010 are only about 4 percent lower than the first half of 2008, which was a record breaking year for foreclosure sales in Dakota County. West St. Paul and Lakeville both had large percent increases from the first half of 2009 at 79 and 58 percent respectively. Hastings and Rosemount had decreases between 2009 -2010. CDA Dakota County Community Development Agency 006600**000000600000*0 Dakota County Stats — June 2010 • # of Sheriff Sales in June — 152 (compared to 158 in June 2009) HOME OWNERS wwwctiml • Total Sheriff Sales for 2010 — 1,064 (compared to 850 in Jan. June, 2009) • # of Notices of Pendency Filed in June — 346 • Total Notices of Pendency Filed for 2010 — 1,933 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: • One out of every 10 vacation homes purchased nationally in 2009 was in foreclosure and real estate agents say there is a similar trend in Minnesota lake homes. • Data released last month suggests that the housing crisis in Minnesota may be lingering. The number of residential construction jobs fell 13 percent in the first quarter of 2010 whereas home foreclosures set an 18 -month high. • A report released by the Minnesota Home Ownership Center indicates that more suburban and rural home owners are threatened with foreclosure. • The Minnesota Home Ownership Center recently launched "Look Before You Leap" — a campaign created to help people avoid foreclosure rescue scams and seek legitimate help. The campaign's website is http : / /www.lookbeforeyouleap.org/ If you have any concerns, please call me at (651) 675 -4464 or send me an e-mail at drogness dakotacda.state.mn.us N z C7 ° '40 V "s • %0 N O N O N V • N M %0 N I� N— M M O u1 M Ln Q Co 410 ap O C • a • E • o `J v v • C > . 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"Now, it's like, 'Oh, no, another lake shore listing,'" said Kay Bowman, a real estate agent with Century 21 Land of Lakes in Grand Rapids. A few years ago, prices for lake homes were climbing at double -digit rates as buyers seemed convinced that all cabins in the land of 10,000 lakes soon would be gone. Sellers at the time also could count on demand from buyers who tapped equity from primary residences in the Twin Cities or elsewhere to finance a purchase up north. But nowadays, selling a lake home is no day at the beach. Vacation home prices have fallen, buyers are waiting for bargains, and bank foreclosures — once unheard of on certain lakes — dot the shorelines, providing low -price competition for other sellers. One of every 10 vacation homes purchased nationally in 2009 was in foreclosure, the highest such rate in five years, according to the National Association of Realtors. Real estate agents say there's a similar trend in Minnesota, although they point out that foreclosures aren't the only reason for slow sales at the lake. "It's consumer confidence — sales are down for almost all big nonessential purchases," said Mike Peller, president of the Duluth Area Association of Realtors. "We are down approximately 40 percent in values since 2007," said Marc Kuhnley, an agent in the Brainerd Lakes area with Edina Realty. "Of course, that 40 percent isn't off a true value — it's off of a false value that was driven by the market." Nationally, the 10 percent of vacation homes in foreclosure or trustee sales last year is up from just 1 percent in 2005, according to the national Realtors group. Foreclosure and short-sale listings in the Twin Cities metro area had a much bigger impact on the housing market during 2009. The homes accounted for 43 percent of the region's home sales, according to the Minneapolis Area Association of Realtors. As a group, second -home buyers tend to be a Print Powered By ! = Cr i 4 D nan _ ; httD: / /www.twincities.com/ei 15241259 ?source =most viewed 6/7/2010 A quiet foreclosure trend in Minnesota: lake homes - TwinCities.com TwinCitiesecom Page 2 of 4 stronger set of borrowers, said Tim Swierczek, a mortgage broker in Maplewood and president of the Minnesota Mortgage Association. If nothing else, he said, vacation homebuyers must show lenders they can afford the extra house payment. Five years ago, people buying lake homes had plenty of equity in their first home to draw on, Swierczek pointed out. Plus, buyers were more confident about their own financial health, as well as that of the housing market. That's all changed. Realtor groups don't break out sale statistics for all waterfront properties in Minnesota, nor do housing experts count foreclosures just at the lake. But statewide figures for all home sales and foreclosures provide some context for the comments from real estate agents. The statewide median sale price for a home in Minnesota during April was $155,000, an increase of 9 percent compared with 2009, according to the state Realtors association. That improved median price, however, remained far shy of sale prices in 2008, not to mention the boom years of 2004 to 2007. The median is the point at which half of all homes sell for more and half for less. Back when the real estate market was hot, Minnesota's statewide median price consistently hovered around $200,000. A report this spring from Minneapolis -based HousingLink suggests bank foreclosures were making appearances lakeside. Several counties in cabin country were among those with the biggest jump in bank foreclosures between the first quarters of 2009 and 2010. For example, Lake County — the picturesque home to Two Harbors, Split Rock Lighthouse and miles of pristine Lake Superior shoreline — saw a 650 percent jump in bank foreclosures in the first quarter, according to HousingLink. The rate of increase is much more dramatic than the actual numbers, since the county's foreclosure count jumped from just 2 to 15. Still, county officials say vacation homes now are among the mix of bank foreclosures in an area that had just two properties repossessed by banks during all of 2000. Year -to -date in 2010, Lake County has conducted 30 foreclosure sales. Further up the shore in Cook County, Kim Wolff of Timber Wolff Realty in Lutsen said distressed sellers remain relatively uncommon, particularly among individual cabin owners. But it's a different story for some developers who, as a group, "are taking the biggest hit these days," Wolff said. This month, for example, she listed two inland vacation properties as potential short sales. The properties had been model homes for a development that has fallen on hard times. In the Brainerd Lakes area, banks are involved in about two of every five sales of waterfront property, whether by way of foreclosure or a short sale, estimated Marc Kuhnley, the Edina Realty agent. The listings have helped push prices downward — particularly at the spendy end of the market. A lake home in the Brainerd Lakes area originally listed for nearly $1.7 million sold after two years on the market for $999,000, Kuhnley said. Another Print Powered By i For .°, — °Dyn amics ' httn: / /www.twincities.com/ci 15241259 ?source =most viewed 6/7/2010 A quiet foreclosure trend in Minnesota: lake homes - TwinCities.com TwinCitiesecom Page 3 of 4 home originally listed for nearly $1.8 million is now down to about $1.3 million after three years on the market. "Currently, there are 80 lake properties over $1 million dollars on the market up here," Kuhnley said. Homes in that price bracket are selling at a rate of about six per year, he added, so it could take a long time to burn through the supply. "We are seeing a lot more bank -owned properties in the Brainerd Lakes area market, which is predominately lakeshore homes that are second residences," said Terry Pederson, an agent with Re /Max Lakes Area Realty in Crosslake. "if you're a buyer, it couldn't be a better time." There are signs that at least some buyers are responding, said Bruce Pogatchnik of Northview Bank in Finlayson. Six to nine months ago, buyers were making offers that were substantially below list prices with sort of a take- it -or- leave -it attitude, Pogatchnik said. Now, buyers' offers are much closer to the listing price. "Either things are firming up or the people who were one the sidelines think the market has cycled through the bottom," said Pogatchnik, whose bank provides financing for recreational property purchases. He added that while foreclosures of vacation homes haven't been much of an issue for his bank, more bare lake lots have come back than is typical. GRAND RAPIDS AREA Foreclosures on nice lake homes in the Grand Rapids area used to be unheard of, said real estate agent Kay Bowman. That's changed in the past year or two, as homeowners struggling to keep up with payments on their first homes have had to let go of their vacation properties. A current listing on Sand Lake in Itasca County is a case in point. With 1,900 square feet of space, the two- bedroom house has 150 feet of sandy Lakeshore, a fireplace, vaulted ceiling, patio and a two -car garage. The previous owner tried to orchestrate a short sale — in which lenders agree to a sale for less than the amount owed on the house — but couldn't find a buyer in the high 200s, Bowman said. After the bank took the property in a foreclosure, Bowman got the listing in February and promptly priced it at $259,000. She's since cut the price three times — to $219,900 — but has had only one showing. Foreclosures can hurt any housing market, but Bowman maintains they are just a small part of the story in her area. "People aren't coming up here to buy," she said. "So, you have this great volume of homes that we didn't used to see. If you could list something on the lakeshore, you used to say, 'Oh, great, I have a lakeshore listing.' " There have been some signs of life in the Grand Rapids market this spring, but the trend over recent years has been decidedly downward, said Charlotte McDermott of Coldwell Banker Northwoods Realty. The average sale price for waterfront properties in the area was down 11 percent between 2008 and 2009, according to local Realtors statistics. Print Powered By {' : _= -_Dynamics httn: / /www_twincitics.com /ci 15241259 ?source =most viewed 6/70,010 A quiet foreclosure trend in Minnesota: lake homes - TwinCities.com Page 4 of 4 TwinCitiesocom Nearby sellers get the point. "It is very slow," said Thomas Bloomquist, an Itasca County resident who is trying to sell a four - bedroom home with 200 feet of shoreline along a small lake in rural Grand Rapids. This year marks the third consecutive spring that Bloomquist's home has been on the market, with a current list price of $279,000. Bloomquist works as a foreclosure prevention counselor with a nonprofit group in Duluth, so he knows that federal efforts to prevent foreclosures are focused only on primary residences. It's understandable, he added, since a second home or cabin is "not a real need; it's a want." As he surveys for -sale signs at nearby lakes, Bloomquist said he's not sure how many are foreclosures. Unlike Twin Cities real- estate websites, brokers in northern counties don't routinely list the foreclosure status of listings. But Bloomquist said he wouldn't be surprised if foreclosures are becoming a bigger part of the mix. "With the collateral damage from employment losses and so many households down to one wage earner," he said, "that luxury of having the second home just isn't there." Christopher Snowbeck can be reached at 651 -228- 5479. Print Powered By ._firs `. `Dynamic httn / /iznzrov twin�itiPC nnm /ri 1 5741 �S9�cnnrrP =mnct viewf-d A /700 () http://www.startribune.com/homes/96345449.html?page=2&c=y r Page 1 of 2 Minnesota still in grip of crisis in housing Thousands fewer jobs and thousands more foreclosures add up to a lingering housing c risis, suggests a study released Monday. While the number of residential construction jobs fell to a 13 -year low in the first quarter of 2010, home foreclosures hit an 18 -month high, according to the quarterly report from the Minnesota Housing Partnership. And that may not change anytime soon, the organization's executive director, Chip Halbach, said. "It's just a situation where declining incomes, loss of jobs are squeezing people out of their homes," he said. Actual foreclosures in Minnesota numbered 6,700 from January to March, the highest total since the third quarter of 2008. Pre - foreclosure notices were also on the rise, an indicator that Halbach said meant more foreclosures in the future. Meanwhile, mortgage delinquency rates fell for the first time in at least three years. The level hit 7.7 percent in the first quarter of 2010, down from 8.1 percent in the last quarter of 2009. Still, delinquencies remained more than twice as high as the same period in 2007, when rates held steady around 3 percent. Residential construction jobs in Minnesota have also taken a severe hit, from more than 1 4,000 in March 2007 to 8,800 in March 2010. "There will be some leveling off," Halbach said. "The economy has improved somewhat -- at least it's not getting a lot worse." Several studies track the housing market, but most focus on one piece of it, such as home sales or home construction. Minnesota Housing Project's "2x4" report takes a more holistic approach, tracking housing trends across the industry, including rental prices and vacancies, homelessness, and employment in home construction. The organization, based in St. Paul, advocates for adequate housing throughout Minnesota. "Until we see the number of jobs increasing and a fairly dramatic reduction in the unemployment rate, we will continue to see elevated numbers of foreclosures," said Ed Nelson, a spokesman for the Minnesota Home Ownership Center, a St. Paul organization that offers foreclosure counseling. Data provided by the Minneapolis Area Print Powered By = `l�,rrsara tics httn:// www .startribune.com/temDlates /fdcn? 1276807200645 6/17/2010 http: / /www.startribune.com /homes /96345449.html ?page =2 &c=y Page 2 of 2 � Md! �., Association of Realtors indicated that foreclosures and short sales totaled 28 percent of all Twin Cities sales in the first quarter. The federal first -time homebuyers' tax credit boosted home sales, the association's president, Brad Fisher, said. But with that credit now expired, sales have already plummeted in May. The rental market improved somewhat, with the vacancy rate falling to 6.2 percent, thogh still well above the 5 percent that is considered balanced. The percentage of tenants late with their rent also fell one percentage point, to 19 percent. Meanwhile, homelessness continues to climb. Hennepin County public shelters served 195 families between January and March, reflecting an overall upward trend and a 48 percent increase from the same period in 2007. Minneapolis and St. Paul schools also counted 6,342 students without homes between Julv and March, a 6 percent increase over the same time last year. "Housing is not just something that stands off by itself," Halbach said, "but it's really an important part of our communities in terms of employment and education." Molly Young • 612 -673 -4376 Print Powered By = "" a - TT E? tarrtic httn• / /www ctartrihnne r nm / tPmnlatPC /frlrn91771SR07?00645 6/170010 More rural, suburban Minnesotans threatened with foreclosure - TwinCities.com TwinCitiesecom Page 1 of 2 More rural, suburban Minnesotans threatened with foreclosure By Christopher Snowbeck csnowbeck @pioneerpress.com Updated: 06/19/2010 12:32:43 AM CDT Moving out More homeowners in the suburbs and rural areas are seeking foreclosure counseling, another indicator that the problem has migrated beyond the inner cities. This map reflects the rate at which households in metro counties sought help from the Minnesota Home Ownership Center. Nearly 16,000 Minnesotans sought foreclosure prevention counseling services in 2009, an increase of 34 percent compared with 2008, according to a report being released today by the Minnesota Home Ownership Center. The report from the St. Paul -based group says that nonprofit counselors in the state helped homeowners avoid foreclosure in 57 percent of all cases in 2009, up slightly from the previous year. In Ramsey, Washington, Chisago and Isanti counties, the center's counselors reached between 1.7 percent and 2.8 percent of the owner- occupied households in those areas, the report found. That means the relative saturation rate of counseling across the state was highest in those counties, along with four collar counties in the west metro and three others farther from the state's urban centers. "The pattern of service use suggests that the foreclosure problem is moving out from the urban areas and into suburban and rural counties," the ApAs report states. "The counties with the highest rate of ' • Re�ota°"ses'okis households served form a ring surrounding seeking help in 2009 Hennepin and Anoka counties." McLe� l Co. Co. t�akota { - to. 1� Source: Minnesota Horne Ownership Center F - Ouk -0.2% (' 0.3% -0.6% 0.7% -1% 1.1% -t.6% 1.7% -2.s% PIONEER PRESS A new report on homeowners facing foreclosure offers more evidence that mortgage defaults increasingly are a suburban and rural phenomenon in Minnesota. In May, a Minneapolis group called HousingLink reported that first quarter foreclosures in Minnesota were up 28 percent compared with the same period in 2009. The rate of increase was especially high in suburban counties such as Washington and Dakota as well as those beyond the metro area, a change that experts said fits with shifts in the underlying causes of foreclosure. Whereas many foreclosures a few years ago stemmed from subprime mortgages with features that made the loans unaffordable in the long run, Print Powered By httn:/ /www.twincities.com/business /ci 15330239 ?nclick check =1 6/22/2010 More rural, suburban Minnesotans threatened with foreclosure - TwinCities.com TwinCities Page 2 of 2 more homeowners today are falling behind on mortgage payments because of incomes diminished by the recession. That has resulted in less geographic concentration in bank foreclosures, which had been most frequent in certain neighborhoods of St. Paul and Minneapolis. Although there have been signs of life in the Minnesota employment market this year, income loss remains the significant driver of foreclosures, said Ed Nelson, spokesman for the Minnesota Home Ownership Center. "Even if the unemployment numbers decrease dramatically today, it can be months before a homeowner recovers financially," Nelson said. The Home Ownership Center coordinates a network of 25 agencies across the state, providing local foreclosure counseling services. The report to be released today is the group's second annual survey to summarize the demographics of Minnesota homeowners seeking help. There were 23,019 foreclosures in Minnesota in 2009, the second highest year on record. The total was down 12 percent from 2008, when the state set a record with more than 26,000 foreclosures. Almost 5 percent of all residential properties in the state have experienced a foreclosure in the past five years, according to the report. "As we enter the third year of this prolonged foreclosure crisis, the need and demand for foreclosure counseling services continues to grow," the report states. "High levels of unemployment mean many families are struggling to pay their mortgage, and falling home prices render a home sale economically unfeasible when the mortgage is no longer affordable." Christopher Snowbeck can be reached at 651 -228- 5479. Print Powered By i r = o .—,a t.Dyna a bttn• / /www twincitiPC cnm/hncinPCC /ri 1 5VAn ?I9pnrlirk rbPrk=1 6/ ? ? / ?()1() http: / /www.startribune.com /homes /97357279.html ?page =2 &c=y Page 1 of 2 6 ft im M I irl - = Look Before You Leap: Out to quell foreclosure - related scam Patricia Goff got taken not once, but twice, by shoddy loan modification companies promising to fix her mortgage woes for an upfront fee. Neither delivered and now Goff, 47, is facing foreclosure on the Rosemount home where she lives with her husband and 21- year -old son -- unless she comes up with $34,000 -- more than Goff earns in a year. "They dragged my life out and now it's done. It's too late. There's nothing that can be done because we're a year and a half behind on our mortgage," she said. Hoping to prevent others from ending up like Goff, the Minnesota Home Ownership Center and dozens of partners are kicking off Look Before You Leap, a campaign designed to teach people how to spot foreclosure- related scams and let people know help is available for free from housing counselors around the state. "If you're being approached by somebody offering a quick fix, making promises about being able to modify your mortgage and /or looking for money from you, those are red flags," Julie Gugin, executive director of the Minnesota Home Ownership Center, said. There will be an event at 10:30 a.m. Tuesday on the East Side of St. Paul, one of the areas hardest hit by foreclosure, featuring homeowners who have agreed to share their horror stories. It'll also include remarks from housin(y officials. Look Before You Leap is part of a national public education effort called the "Loan Modification Scam Alert," which was started by the community development nonprofit NeighborWorks America with $1 million from Congress. So far, several cities around the country -- Los Angeles, Dallas, Miami, Atlanta, Las Vegas, Milwaukee and Kansas City, to name a few -- have created local versions of the campaign, NeighborWorks spokesman Steve Hennes said. Events are planned in Chicago, Des Moines and Omaha later this year. In Minnesota, the Home Ownership Center, along with local partners including the Minnesota Department of Commerce, Wells Fargo, the Foreclosure Partners Council and the Minnesota Housing Finance Agency, will spend six months spreading the word about the booming mortgage scam industry using the new website lookbeforevouleap.org, a Facebook page, and materials that partner agencies can hand out to Minnesotans in need. Print Powered By a c ° Dy qs http: / /www.startribune.com/templates /fdcp? 1277832197098 6/29/2010 http: / /www.startribune.com /homes /97357279.html ?page =2 &c=y Page 2 of 2 1411 =,I 4 - Kel l As the number of foreclosures increase in Minnesota, more struggling borrowers are turning to loan modification for help. According to the latest figures from HousingLink, there were 6,716 foreclosures in Minnesota in the first quarter, up about 11 percent from the previous quarter and 28 percent higher than the first quarter of 2009. Last year more than 23,000 Minnesotans lost their homes in foreclosure. Backlogs at mortgage servicers that can legitimately offer modifications along with the fact that not everyone qualifies for the programs offered by banks and the federal government have opened the door for unscrupulous businesses to make promises to desperate homeowners. Gugin said that while this problem has no boundaries, certain areas and demographics are companies to charge fees before delivering services. Minnesota Attorney General Lori Swanson sued two companies in March for violating this new law. It's tough to determine whether a campaign is successful because the problem tends to be underreported, making it hard to know how widespread the problem is to begin with. In Minnesota, Gugin will monitor the use of materials and hopes to track complaints to the attorney general's office. What has Goff learned from her ordeal? "Don't pay any money upfront," she said. "I could start up a company and say, 'Hey, I can help you with your mortgage,' and let you sit there, and sit there and sit there and wait. And then nothing's done, but thanks for the $3,000." particularly targeted: outer -ring suburbs, Kara McGuire • 612- 673 -7293 areas with high rates of unemployment, senior citizens, and within the Latino, Hmong, and African - Ameri can communities. Spotting an illegitimate loan modification offer can be difficult. "People don't recognize necessarily that they're being scammed," Gugin explained. A 2009 state law makes it illegal for Print Powered By �� TC7y arni�s http:// www .startribune.com/templates /fdcp? 1277832197098 6/29/2010 t IV SUMMARY OF LAKEVILLE'S RENTAL MARKET 2010 2010 AVERAGE RENT AND VACANCY CHANGES FROM 2009 - INCREASE / (DECREASE) AVERAGE RENTS Lakeville's overall average rent for 2010 decreased by $14.47 or 1.50 %. Average rents were lower for three bedroom units and higher for efficiency, one and two bedroom units when compared to the county averages. VACANCY RATES The overall vacancy rate for Lakeville in 2010 was 4.56 %, down from 6.49% in 2009, see Graph 50. Vacancy rates were lower for efficiency, one and two bedroom units and higher for three bedroom units when compared to the county averages. Vacancies in Lakeville account for 1.95% of the vacancies county-wide, see Graph 46. SPECIAL NOTES Lakeville accounts for 2.98% of the rental market in Dakota County, see Graph 47. Lakeville has four senior housing developments: Crossroads Commons (87 units), Highview Hills (153 units), Main Street Manor (51 units) and Winsor Plaza (64 units). See "Senior Housing" section for details. Lakeville has four tax credit developments: Cedar Valley Townhomes (30 units), Country Lane Townhomes (29 units), Lakeville Court (52 units) and Prairie Crossing (40 units). See "Tax Credit Housing Units" section for details. One tax credit development, Meadowlark Townhomes, is under construction. See "Units Under Construction" section for details. Lakeville has one congregate /assisted living housing development: Highview Hills (76 units). See "Congregate and Assisted Living" section for details. For the number of rental units, average rent and vacancy trend information from 2006 - 2010, see Graphs 48 - 50. AVERAGE RENTS VACANCY RATES 2010 Avg. Rent Dollar Amt. Percent 2009 2010 Differenc Unit Size of Change Change e Efficiency $650.00 $650.00 0.00% N/A 0.00% N/A One Bedroom $795.02 ($37.32) (4.48 %) 2.20% 4.86% 2.66 Two Bedroom $968.45 ($7.73) (0.79 %) 7.80% 3.71% (4.09) Three Bedroom $1,181.86 $18.73 1.61% 9.62% 7.00% (2.62) AVERAGE RENTS Lakeville's overall average rent for 2010 decreased by $14.47 or 1.50 %. Average rents were lower for three bedroom units and higher for efficiency, one and two bedroom units when compared to the county averages. VACANCY RATES The overall vacancy rate for Lakeville in 2010 was 4.56 %, down from 6.49% in 2009, see Graph 50. Vacancy rates were lower for efficiency, one and two bedroom units and higher for three bedroom units when compared to the county averages. Vacancies in Lakeville account for 1.95% of the vacancies county-wide, see Graph 46. SPECIAL NOTES Lakeville accounts for 2.98% of the rental market in Dakota County, see Graph 47. Lakeville has four senior housing developments: Crossroads Commons (87 units), Highview Hills (153 units), Main Street Manor (51 units) and Winsor Plaza (64 units). See "Senior Housing" section for details. Lakeville has four tax credit developments: Cedar Valley Townhomes (30 units), Country Lane Townhomes (29 units), Lakeville Court (52 units) and Prairie Crossing (40 units). See "Tax Credit Housing Units" section for details. One tax credit development, Meadowlark Townhomes, is under construction. See "Units Under Construction" section for details. Lakeville has one congregate /assisted living housing development: Highview Hills (76 units). See "Congregate and Assisted Living" section for details. For the number of rental units, average rent and vacancy trend information from 2006 - 2010, see Graphs 48 - 50. SUMMARY OF LAKEVILLE RENTAL DATA - 2010 0 BR 1 BR 2 BR 3 BR TOTALS Number of Units 1 185 350 100 636 Percentage of Lakeville Market 0.16% 29.09% 55.03% 15.72% 100.00% Average Rent $650.00 $795.02 $968.45 $1,181.86 $951.06 Number of Vacancies 0 9 13 7 29 Vacancy Rate 0.00% 4.86% 3.71% 7.00% 4.56% It I LAKEVILLE TRENDS 2006-2010 RENTAL UNITS RESPONDING TO SURVEY 800 700 600 500 400 300 200 100 0 Graph 48 i 572 560 556 636 632 2006 $1,200 $1,000 $800 $600 $400 $200 $0 EFFICIENCY 1 BDRM 2 BDRM 3 BDRM Graph 49 ❑ 2006 ❑ 2007 ■ 2008 ■ 2009 ❑ 2010 Percentage 2007 2008 2009 2010 —0— Rental Units VACANCY RATE 6.43 6.49 5.77 4.68 --------- --- -- -4. -56- 2006 2007 2008 2009 2010 Graph 50 12 10 8 6 4 2 0 Units represented refer to units identified through responses to the survey AVERAGE RENT BY BEDROOM SIZE Monthly Rent LAKEVILLE PERCENTAGE OF COUNTY'S RENTAL MARKET 2010 Percent of County's Vacancies ❑ 1 BR - 9 UNITS 13 BR- 13 UNITS 03 BR-7 UNITS GRAPH 46 COUNTY -WIDE LAKEVILLE Percent of County's Rental Units ■ EFFICIENCY (1 UNITS) - 0.2% ®1 BR (185 UNITS) - 2.3% 02 BR (350 UNITS) - 3.2% ®3 BR (100 UNITS) - 6.2% COUNTY -WIDE LAKEVILLE GRAPH 47 Units represented refer to units identified through responses to the survey . i KEY TO THE LAKEVILLE MAP Location of Rental Housing Units Dot # Name /Address # of Units 1 Colonial Apartments 16 20596 -20612 Hollins Ave W 2 Evergreen Apartments 24 8550, 8570 -8590 208th 3 Lakevillage Apts 70 8510 -72 210th St W 4 Lakeville Woods Apts 76 18351 Kenyon Ave 5 N/A 4 16045 Joplin Ave 6 N/A 4 16075 Joplin Ave 7 N/A 4 16947 Garcia Wy 8 N/A 4 16955 Garcia Way 9 N/A 4 16959 Garcia Wy 10 N/A 4 20630 Hughes Ave 11 N/A 4 20785 Holyoke Ave 12 Southfork I & II 272 10829A - 18001 Jubilee Wy 13 The Oaks of Lakeville 106 20452, 20458 & 20464 Iberia Ave 14 Village Dweller 44 20988 Holt Ave 15 Crossroads Commons * 87 17725 Glasgow Ave 16 Highview Hills — Independent Living * & 153 Assisted Living and Memory* ** 20150 Highview Ave 17 Main Street Manor * 51 8725 209th St W. 18 Winsor Plaza * 64 20827 Howland Ave 19 Cedar Valley Townhomes ** 30 17326 -382 Glacier Way 20 Country Lane Townhomes ** 29 7754 -7870 210 St W. 21 Lakeville Court ** 52 20390 Dodd Blvd 22 Meadowlark Townhomes ** (NEW CONSTRUCTION) 40 Holt Ave & 210th St W 23 Prairie Crossing Townhomes ** 40 20340 - 20484 Icefall Trail * See Senior Housing Units for additional information ** See Tax Credit Housing Units for additional information * ** See Congregate and Assisted Living Housing Units for additional information L A DIAM rH CAM RA✓' 150TH STW Pp S PA REONOOD A �PARSOTH S i 150TH ST W A Z VALLEY"O I.E w p KEL4Z l E PAR 1C— f!,ARK X m Z GREEIGF Y, CRY 7AL ES �` ppAAP� VAL DOLE PENR02aPARK x Z Q JUDI AL ARK p( URyER Sr' GREE PARK < A VALLEYd POND R K PARK YSTAL BEA PARK < H J Q ST O ELEM CEDAR PAf2K EL M. �� K 0 . �" E CRYSTAL KELLERIPARKAC V NiFISHING d Q O LOyrrpRK `r.V` U ` W Q P LAKE �LA� PrE A APP ,ICS NE[T�IGK (ACLAWN WB C PEN lI; 6 LAKE AC 160TH ST W VALLEY iE E DOC=INT 5 ,,rr,,���� � RA Ri]Jtk O�s CRYSTAL EM. HIGH VI GHTS Q ELEM. INDEP ENCE ° POIMTE CROSSING � ` AA J� c( Q PARKVIE ORCH 4AKE ELEM.KERaEEL PAW 165TH STW PA HII.�S ELEM S P LLow Y K�NGSLEY ..LONE OdK PARK PA i p LAKE Q' ROLAKS �`� OUCH _ WAY ARK 1eA vRl ( CRYSbY LAKE 7 U FK IU IRFIELD a KFFNf ''T�F ARK �E KENMOJ�PARK � T!$�E; ' UR RK 170TH ST rIaRDUKE GOOSE ' � — �4 I 9 - NORTpt'IIRAIL ELEM. oRC LiKE II cED,g41yGHLAND.S N�AD a R O ORLHARD OOO KE CH =W K LAKE NORTH PARK i1 CHRISTINA HUDJLESTON E M. l � • .\ oRCHARO 175TH ST DAK a Hrs CHERRY VIEW ELEM. GHE I1W B P`s A4aRR 12 I o gwo s 15 f zl� 'OD f Rav�1KE o �STVIF�IN ELEM. " RAVEN j, } .' 4 LAKE Q 0 ° w 185TH ST 185TH ST K/NO PA w < DAI A oLL CENTUY J.H. > Q Q PRAT IE EEK = N 0 "I PA "Rif F j U O � Y FI,�A,IING ASS A � > 190TH ST W O D k O O < R LL u w E OTA'( a a ITTERFARM 1 PARK f OO JRAIL J.H.S. PRES R PARK — Lf' AKIN ROAD ELEM. 195TH STW f. LAKEVILLE tGH NORTH >W GA EPSON PARK Q MA R10N LAKE LAIC MARION ELEM. w 200TH ST W 1 J�IN PA�K i 16 A ftS ARK LAKEVI ELEM. 21 23 1 PAR PINrr �--1 NSON PA 205TH ST W aaeK pcve DaOK YC PARK J RK p� 17 TRACE PARK ¢ 210TH ST W O • • 2 20 z FARMINGTON MIDDL ✓O LAKEVILLE HIGH SOUTH ° 14 •3 o Q lVj r, JOHN F. KENNEDY ELEM. QAI(EVILLE BLVD > w R ly q DONALD J. MCGUIRE J.H. < ` LL y , 215TH STW S P RK U z m FARMINGTO JH.S w O Y Q LL 220TH ST W A CAKE � L k PARK ^t AIRPORT 225TH ST � 225TH ST W a tt LAKEVILLE - Surveyed Market Rate Rental Housing 0 N W E S 0.5 1 Miles Rental Units by Location 1-25 • 26 -75 76 -175 • 176-300 • More than 300 (See Key for information about individual locations.) 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