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09-23-08
City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, September 23, 2008, 5:00 p.m': City Halt; 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order 2. Approve August 26, 2008 meeting minutes 3. Review of Business Retention Program Questionnaire 4. Marketing Program Update 5. Update on Status of Strategic Plan Work Program Items 6. Director's Report 7. Adjourn Attachments: August Building Permit Report Dakota County CDA Foreclosure Update "Can small-town charm be built from scratch?" St. Paul Pioneer Press - TwinCities.com, September 7, 2008 "That small-town charm eludes suburbs attempts to build it" St. Paul Pioneer Press - TwinCities.com, September 8, 2008 "State Lands New Wind-Gear Plant in Faribault", DEED News Release, September 4, 2008 "Jobs Decline by 3100 in August", DEED News Release, September 18, 2008 item No. City of Lakeville Economic Development Commission Meeting Minutes August 26, 2008 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Vlasak, Schubert, Tushie, Pogatchnik, Stanfield, Erickson, Ex-officio member Mayor Holly Dahl, Ex-officio member City Administrator Steve Mielke. Members Absent: Smith, Emond, Brantly. Others Present: David Olson, .Community & Economic Development Director; Adam Kienberger, Economic Development Specialist..::... 1. Call Meeting to Order Chair Matasosky called the meeting to order at 5:00 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve June 24, 2008 Meeting Minutes Motion 08.08 Comms. Tushie/Pogatchnik moved to approve the minutes of the June 24, 2008 meeting as presented.. Motion carried unanimously. 3. Presentation orr Proposed,Business Retention Program Adam .Kienberger gave an update on the development. of the business retention program. He also reviewed an interview guideline that will be used prior to the visits to establish a common knowledge and clear roles and responsibilities. Mr. Kienberger further explained that staff will continue to develop a standard questionnaire for fihe visits-and hope to .begin them this fall Comm. Stanfield asked about coordinating efforts withthe Chamber of Commerce and DEED. Mr. Kienberger responded that the visits can be coordinated so as not to conflict with the Chamber's Grow Minnesota visits. The DEED folks are often hard to coordinate with as they have a more statewide representation and not just a local objective. Economic Development Commission Meeting Minutes August 26, 2008 Comm. Pogatchnik mentioned that this should work well as the City has done this in the past. Chair Matasosky .suggested that during the visit scheduling, the businesses are given the questions prior to the visit. This will also be a good opportunity to learn about what some of the businesses 'rr~°thetndustr-ial park do. 4. Update on Broadband Feasibility Study RFP Mr. Kienberger gave an update on the broadband feasibility study request for proposals. Staff .has recommended and the City Council has authorized the solicitation of proposals to analyze its current leased City fiber network operations and determine if it is financially beneficial to build and maintain its own fibernetwork for governmental use. In addition to the analysis of a .fiber-based City facilities network, the study would evaluate the feasibility to either construct an independent or as an expansion to a government network, a fiber to the premise (FTTP) project for the entire community including homes, businesses, and government facilities consistent with the recommendations of the BTTTF report. It should be noted that Lakeville is not the first area city to consider a FTTP project. The Cities of Eagan, Red Wing, and Northfield are currently conducting feasibility studies. LakeviNe also continues #o collaborate with other Dakota County cities on this issue at monthly meetings held in Eagan to discuss broadband issues in Dakota County.. These strategy/education meetings are viewed as related, but independent of what staff is currently proposing be pursued for the City. Mr. Olson added that one of the goals of a .network would be to provide redundant services to businesses that have expressed a need for it. Comm. Pogatchnik' noted that with the recent announcement. of telecommunications companies such as Frontier imposing broadband caps, this is a good idea to study. Mr. Kienberger gave an additional update on St. Louis Park's Wi-Fi project and a new Dakota County wireless provider, Citilink Communications. Mr. Olson added that School District #194 might be a partner in the process as they currently have additional capacity in their fiber installations in Lakeville. 2 Economic Development Commission Meeting mutes August 26, 2008 5. Update on Market Plaza Project Mr. Olson gave an update on the Market Plaza project. He stated that the plans are being finalized and are going out for bid at the end of the week Comm. Pogatchnik commented that this project really cleans up Downtown. Comm. Stanfield noted that Shakopee has a nice bandshell in their downtown. and could be a good example for Lakeville. Steve Mielke added that Chaska also has a very nice town square area and it was one. of the ones the Downtown Planning Task Force toured prior to the creation of the Downtown Development Guide. 6. Update on Airlake Airport Comprehensive Plan Mr. Olson updated the EDC on the Airlake Airport Comprehensive Plana Comm. Stanfield asked -about the timing of the runway extension and funding availability. Mr. Olson responded that the runway extension wouldn't likely happen for. 10-15 years due to planning and funding availability. Comm. Vlasak asked about the Wings of the North Air Expo and why it didn't occur in Lakeville as originally planned. Mr. Olson responded that there were some logistics and space issues. at Airlake Airport and that it will likely continue to operate at the Flying Cloud Airport in Eden Prairie. 7: Director's Report Mr. Olson reviewed the Director's Report. Comm. Pogatchnik gave an update on the Dakota County CDA's housing plans for Dakota County and noted that they construct projects where a need has been demonstrated. It was noted that Lakeville has a good relationship with the CDA and that they do high-quality projects. Mayor Dahl added that the CDA is recognized nationally as one of the best public housing developers and they really do quality work in Dakota County. 3 Economic Development Commission Meeting Minutes August 26, 2008 8. Adjourn The meeting was. adjourned at 6:00 p.m. Respectfully submitted by: Attested to: Adam Kienberger, R. T. Brantly, Secretary Economic Development Specialist. 4 Item No. City of Lal~vii~e ' ~ Community and Economic Development Memorandum To: Economic Development Commission From: Adam Kienberger, Economic Development Specialist Copy: Steve Mielke, City Administrator David L. Olson, Community and Economic Development Director Dater September 19 2008 Subject: Business Retention Program As a part of the 2008-2010 Strategic Plan for Economic Development one of the goals under the strategic work area Partnersh/,os includes Exp/ore opportunities to build relationships At the last two EDG meetings it was discussed and recommended that staff develop and coordinate a business retention visit program for the Lakeville business community. This program will help create and retain .relationships between the City and both large .and small businesses throughout Lakeville. A draft business survey has been completed and is attached for the EDC to review. .Staff will coordinate with EDC members in setting up business visits in the near future. r , 1 ~ . l• City of Lakeville Business Retention` & Expansion Questionnaire Purpose of business visits: to open and maintain comrrzunication with the Lakeville business community. Date of Visit: Company Name: Company Address: Company Website: Person(s) Interviewed: Phone: Email Staff and EDC Volunteer: Lakeville Business Retention Expansion Survey Page 2 1. What products or services does your business provide? 2. Is this the only location of your business? (Circle one) YES NO Headquarters location? If no, where else do you have locations? 3. How long. have you been located in Lakeville? 4. Where are your principal market areas located? (Check all that apply) Local Regional National International 5. Do you foresee substantial growth for you industry and ~ cur company? (Circle one) YES NO If yes, please explain: 6. Are your company?s,current<facilities adequate for anticipated future operations (3-5 years}? (Circle one) YES NO If not, why not? 7. How many full-tune employees do you typically maintain at this location? 8. How many part-time employees (less than 40 hours per week)? 9. Are the projected employment needs for this location? (Circle one) Increasing Stable Decreasing 10. Is the labor supply at this location adequate to fulfill your current and future needs? (Circle one) YES NO Lakeville Business Retention & Expansion Survey Page 3 11. Where do most of your employees commute from? (Check one) Within Lakeville South of Lakeville- (Northfield, Elko New Market, New Prague) North of Lakeville (Burnsville, Apple Valley, Eagaxi,_Mpls/St. Paul) West of Lakeville (Shakopee, Savage, Prior Lake) East of Lakeville (Farmington, Rosemount, Hastings) 12. How has your company changed in the last ten years? 13. What changes or trends do you anticipate in the future? 14. How satisfied are you with having your business in Lakeville? Very satisfied Somewhat satisfied Satisfied Somewhat dissatisfied Very dissatisfied If dissatisfied, why? 15. What should the City of Lakeville improve to help the business community grow and prosper? -Item No. City of Lakeville ' ~ Community and Economic Development Memorandum To: Economic Devetopment Commission From: Adam Kienberger, Economic Development Specialist Copy: Steve Melke, City Administrator David L. Olson, Community and Economic Development Director Date: Septemberl9, 2008 Subject: Marketing Program Update As a part of the 2008-2010 Strategic Plan for Economic Development one of the goals under the strategic work area Communications includes Create asing/e, effective message/platform about economic deve%pment. As part of Lakeville's ongoing and developing marketing efforts, a summary of activities are included below. In an effort to increase visibility for the City, we recently entered into a marketing agreement with the Economic Development Association of Minnesota (EDAM) for advertising on their website and in their bi-monthly newsletters. Lakeville was recently recognized by Money Magazine as one of the top 100 ~~Best Places to Live" in the United States. To capitalize on this exposure we have incorporated the Best Places to Live logo onto the City website, issued a press release, and ordered customized plaques to be displayed at Lakeville City Hall. The City of Lakeville continues to stay involved and maintain membership with the statewide marketing group Positively Minnesota in an effort#o guide statewide marketing efforts and maintain exposure to top level government officials. The group's mission statement is as follows: "The Positively Minnesota s Marketing Partnership is an alliance of economic deve/opment professionals, utilities, real estate and construction companies who share the vision of promoting Minnesota s business climate under the Positively Minnesota banner. As a result of a coordinated marketing effort, Minnesota and its partners gain more visibility with site se%ctors and corporate real estate managers at the statewide, regional, and national levels. " The group meets quarterly to discuss statewide. marketing efforts and opportunities to further Minnesota's economic development efforts. With the development of the new MetroMSP.org site selection and Metro economic development website, the Lakeville. website has been modified to include a link to this new resource for businesses-look+ng to locate in Lakeville. Adam has also been a part of a focus group and a beta tester working with the Minnesota Department of Employment and Economic Development (DEED) to revamp their website to make it more user-friendly for both cities and site selectors. This will include a complete overhaul of the. DEED website along with the statewide MNPRO site selection. website. City staff is also currently working on a video marketing piece to be incorporated into the City website and distributed externally as needed. This promotional piece will be an additional way the City of Lakeville can get its message out. As part of the 2008-2010 Strategic Plan for Economic Development, staff will continue to explore new and emerging marketing opportunities to spread Lakeville's message and increase its visibility to the business community.. ~m No. City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date:. September 19, 2008 Subject: 2008 Work Program Update for the 2008-2010 Strategic Plan for Economic Development The 2008-2Q10-Strategic Plan for Economic Development was approved by the City Council on December 17, -2007. Included in this plan are suggested years that specific goals in the plan .would be pursued during the three-year plan. Below is an update on activities that have taken place this year in conjunction with the 2008-2010 Strategic Plan for Economic Development. The following are specific goals that staff recommended be pursued as part of the work plan for 2008 (Year 1): Transportation O Complete the County Road 70 Interchange o The County Road 70 Interchange is under construction and remains on schedule to be substantially completed by fall of 2009. D Participate in the deve{opment of transit in Lakeville o Lakeville negotiated a transit service agreement with the Metropolitan Council to bring transit services to Lakeville starting in the Fall of 2009. o In conjunction with the Metropolitan Council and Dakota County, Lakeville is coordinating deve%pment of a Bus Rapid Transit (BRT) station on I-35 and a BRT station on Cedar A venue. Life-cycle Housing ~ Help the City. achieve reasonable and realistic housing goals that balance the need for different housing types for residents. o Housing goals. were evaluated as part of the 2008 Comprehensive Land Use Planning process o City completed the review and approval of the Highview Hills and CDA Crossroads Senior Housing. Both projects are under construction. Technology Advocate for Lakeville to become a leader in telecommunications services. o The City will be undertaking a feasibility survey to study the feasibility of constructing both a governmental fiber network and aCity-wide fiber to the premise network. o Lakeville is participating in the Dakota County Broadband Committee to study and discuss broadband efforts in Dakota County. o The City negotiated a facility lease agreement with a new provider of wire%ss phone and Internet services Growth Management O Continue to define and provide the information future businesses and developers need in order to decide to locate in Lakeville. o Staff has been working with the Minnesota Department of Employment and Economic Development (DEED) to assist in finding locations for several large sca/e business prospects. o Through the Positively MN group the deve%pment of a "shovel ready" program is underway to .identify information site se%ctors need to locate prospects in Minnesota. O Provide input on the Comprehensive Land Use Plan o The EDC has had the opportunity to provide comments of the proposed Comprehensive Plan prior to it being distributed for the six month review by other public agencies. The EDC will have the opportunity to review the changes that have been incorporated to the proposed Comp Plan as a result of the review agency and public comments ~ Analyze the viability of additional office park locations in Lakeville o Participated in the Dakota County commercial/industrial/office market study completed by Maxfield Research for the Dakota County CDA. Communication O Create a single effective. message/platform about economic development o Staff has undertaken severa/new marketing initiatives which are outlined in a separate memo in this agenda packet, Partnerships O Develop and enhance partnerships whenever possible to achieve EDC goals. o Staff has deve%ped a new business retention and expansion program to help create and retain relationships between the City and both large and small businesses throughout Lakeville. Details of this program are included in a separate memo in this agenda packet. Iketrl N®. ~ . City of Lakeville ' y 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: September 19, 2008 Subject: September Director's Report The following is the Director's Report for September of 2008. 2008 Minnesota Manufacturing Week Events. This years Manufacturers Appreciation Luncheon has been scheduled for Wednesday, October 22"d at the Holiday Inn and Suites starting at 11:30 a.m. EDC members are encouraged to attend if your schedules allow. The Mayor and City Council will be asked. to approve a proclamation designating October 20tH through October 24t" as Manufacturing Week in Lakeville at their October 20t" City Council meeting. It would be appreciated if one or two EDC members could be in attendance at that meeting to receive the proclamation. Building Permit Report The City issued building permits through the end of August with a total valuation of $60,129,811. This compares to a total of $117,097,628 during the same period in 2007.. Included in this valuation were commercial and industrial permits with a total valuation of .$22,115,900. This compares to a total valuation of $39,997,600 during the same period- in 2007. The City issued permits for 94 single family homes through August with a total valuation of $25,420,000. This compares to 149 single family home .permits during the same period in 2007 with a total valuation of $39,397,000. The City issued permits for 21 townhome and condo units through August which compares to 84 townhome and condo permits issued during the same period in 2007. It should be noted that a number of larger industrial and multi-family building permits will be issued in September and/or October. Market Plaza-Bids The City Council at their September 15t" meeting awarded a bid to Pember Construction for-the construction of the Market Plaza at Holyoke and 208t" Street. Pember's bid was $349,100-which was approximately $25,000 under the Engineer's estimate. Construction is expected to commence in the next week to 10 days. Hoffbeck Trucking of Lakeville was awarded the bid for the demolition of the former Peterson Dental building that most rntly housed Dr. Davison Vet Office and Patriot Stove and Fireplace. Demolition is scheduled. to commence on October 1~. Relocation of Hearth and Home Technologies Hearth and Home has signed along-term lease with Airlake Development to lease the entire Airlake South. Creek Business Park building that was recently constructed at the intersection of Co. Rd. 70 and Cedar Avenue. This will result in approximately 100 Hearth and Home jobs remaining in Lakeville. It is our understanding that a purchase agreement has been entered into for the sale of the existing Hearth and Home facility in Fai~eld Business Campus. No details of this agreement have been disclosed at this point. Foreclosure Update Attached is the monthly update on foreclosures in Dakota County provided by the Dakota County CDA. There have been 193 Sheriff Sales as a result of foreclosures in Lakeville through August of this year. This compares to 199 for all of 2007. This City is in the process of formalizing its policies in dealing with these properties. The Building Inspection Department is currently monitoring approximately 169 vacant foreclosed homes in the City. Transit Station Development Updates The City Council will be receiving updates from Dakota County and the Metropolitan Council regarding the status of the planning for the Bus Rapid Transit stations to be developed in Lakeville at their September 22"~ Council Work Session. These stations will include one on I-35 at tl?~ farrneaweigh station} site that will have a 500 car parking ramp and the Bus Rapid Transit station on Cedar Avenue south of 179t" Street. that will include a 200-250 stall parking lot. 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O O 0 0 0 0 0 0 0 0 0 Q O O O y rn ~n Y o v~ ti ,o b ~ ~ ~ d o ~ ~ na o ~ ~ C o rn ~ ~ ~ ~ O ~ ~ ~ 7 ~ tl0' W ~ C!t O ~ O~ ~O 01 GO 00 O O O O N Vii w N w ~1 i-- ~ 00 W ~P oa O~ N O O O O O O O O Vi lJ O 0 0 O 0 0 0 0 O O O 0 0 O 0 0 0 0 O O hr b 00 N O O O O 0 0 0 0 O C O 0 0 O 0 0 0 0 O O O O O O O O O O O W ~ A ~ N O 0 0 J O O J O O W O O O O O O C C O O O O O O O O O O O U J O\ N w co UI W ~O J~ Q~ N r-~ N \O b O~ C~ w N w O O 0 0 O O J W O ~ ~O ~ O O O O O O O O - O N N J O J N 00 O 0 0 O 0 0 0 0 O O O O O O O O O O rOJ' N J N 00 GD O O O O O O O O O A O O O O O O O O O Dakota County E ~ ~ Community Development Agency #~~'~,~~}~i MEMO September I5, 2008 TO: Dakota County. Cities From: Dan Rogness, Director of Community Revitalization Re: Foreclosure Update The Dakota County Community Development Agency. is offering two FREE workshops for homeowners who are worried about making upcoming mortgage payments, are already facing foreclosure or for anyone interested in learning more about foreclosure. The first workshop will be on Thursday, September 25 from 4 to 7 p.m. at Luther Memorial Church located at 3 15 I5`~ Ave. N. in South St. Paul. The second workshop will be on Thursday, October 2 from 4 to 7 p.m. at Heritage Library located at 20085 Heritage Drive in Lakeville. The workshops are open-house events, and participants are encouraged to come any time during the workshop hours. No pre-registration is required. The workshops will provide information on what happens during the foreclosure process, homeowners' rights, and solutions for long-term housing needs. Participants will be able to ask questions and get free advice -confidentially -from trained homeownership specialists. The Dakota County-CDA urges all. homeowners who are facing foreclosure to attend a workshop. The earlier homeowners act, the more options they have. If you know of someonewho will be unable to attend either workshop, but needs help or would like more information about the foreclosure process, please encourage them to call the Dakota County CDA at (65 I) 675-4555. Dakota County Stats -August 2008 • # of Sheriff Sales in August - 157 (compared to 148 in August 2007) • Total Sheriff Sales for 2008 - I ,45 I (compared to 949 Jan.-August, 2007) • # of Notice of Pendency's Filed in August - 264 • .Total Notice of Pendency's Filed for 2008 - 1,948 1-j t~~'~`€".`~ Dakota County t~"~° 5 H 11' 1 Community Development Agency ~~~~1~ 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 fide have Sheriff Sale and Not+ce of Pendency statistics for each city. Mapping Using Dakota County G15 htt~f/pis.co.dakota.mn.us/website/dakotanetgis/ The Dakota County Office of GIS is updating the 2008 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: • The Twin Cities metro area ranked second. (behind Milwaukee) in mortgage disparities between white borrowers and those from racial and ethnic minorities. • According to a report issued by the Minneapolis Area Association of Realtors, more than 20 percent of all houses on the market in the Twin Cities metro area are foreclosures or short sales, up from a little more than 10 percent a year ago. In many communities .nationwide, home sales rose during the second quarter, while sale prices fell -suggesting that lenders are working harder to unload those listings. However, home sales in Minnesota fell 10.8 percent and the median sale price fell 7.2 percent. • A feature article on metro area sheriff sale numbers. All metro counties appear to be on track to exceed last year's sheriff sales by a large margin, but that also means more people are now living within their means and more people are buying foreclosed homes. • Although home buying conditions are prime, the continuing credit crunch is going to make getting a mortgage more time-consuming and costly for some borrowers. If you have any other concerns, please call me at (65 I) 675-4464 or send me an email at drogness dakotacda.state.mn.us. h v. o ~ c N ~ 1-"- r a O N N ~ N O~ O~ ~ ~ ~ ~ ~ N ~ ~ ' ~ N N N N - ~ ~ - - 00 - O~ u'f N z a _ O ~ N ~ N OMO ~ ~ N 00 ~ t . N - V O Z N ~ d U u 0 w y C O ~ .Y ~ C O ~ U ~ d~ a N ~ N ~ OD O~ N ~ O ~ ~ t/1 1A ~ .o c ,,n O N N N N I~ ~ M N-~ O~ D` ~ ~ u Vl O i N = O L N 1 - ,T U v ~ a t ~ o N C` N ~O 'd' N N ~p ^ ~ ~1 O 'c ~ -v N O c ~ N N N N~ O N M O~ N~ ~O 1~ ~ e~'v _H • a ~ ~ U • O C • 1. ~ ~ c Q ~ ~ ^ N N - O~ u1 f'V nn I~ `G O 00 tf1 L • N O • ~ ~ C 1 ~ L ~ y M V1 O .D ~ - O - 00 u'1 tJ'f ~ ~ ~ u- Q LL N N N - N - ~ O • U ~ ~ • ~ = M o~ N 00 M - M - - CO N N N a~ ~ • L ~ ^ N N M - - N M - - - - f'V nt ~ ~ ~ w V ~ • y O rn ~ • ~ y N ~ • ~ ~ bA ~ ~ ~ O • ~ .O t ~ D V • 7 ~ H _ .b+0 U ~ ~ ~ c > 2 =aa.a~ o H O V; app ~ i O t~ O N ~.i ~ J ~ .i O O O vi C•~ O ~s ~V Q GU7 L a- i b.0 ~ ~ d ~ C vOi 3 ~ ~ ~ oUc C Q ~ O. 7 ld td ~ ~ td O O O ~ ~ ~ LL N QmWLL= ~J~~N~N F- O ~ c o ~d N y ~ ~ ~ ~ ~ ~ ~ v ~ ~ a ~ 0~ I~ 00 O 'd' N M d' O ~ i " 3 ONNNNONNN~~-N ~ ~ o- c o ~ aui ~ ° D o~ Z a 0 O a'o ~ ~ ~ o N ~ !d t y V V ~ u O ~ ~ d L N ~ ~ ~ 0 Q Q 3 ~ Gl u ~ ~ ~ ~ C U ~ ° U ~ w ~ a 3 M M M M CO ~ M N N N~ ~p ~ ~ .o Q N cd ~ L N ~ ~ c ~n d v 3 ~!1 - O I~ O! ~D ~ N N ~C ~ L N 1~ M A N-- N N N N,', E u O L ~ = O O 4. (n ~ M M A N ~O M N~ M N N O- N ~ ~ D ~ U ~ O U ~ L O M M M M- ~O M A N O~ O~ N ~ ~ ~ O O ~ A a.' L C ~ ~ d' N M ~ N M N ~ ~ N N 00 ~ ~ ~ •H IA ~ ~ N ~ ~ > U • d~ ~1 ~ ~ M N N N M 00 d' - i.r~ 1~ N N ~ ~ c Q E - ~ • ~ ~ C s p~q v L Q• LL N M N O~ M~ N M O` M O N ~ ~ o ~ O ~ ~ c~ u ~ ~ ~ ~ O ~ ~ ~ ~ N d' N M ~ O` .d. ~O I~ M N O ~ Z ~ ~ • ~ N c ~ ~y LL ~ O ~ N ~ U ~ • V m ~ ~ , ~ ~ ~ ~ oE. ~ ~ N ~v ~o+ ~ s h ~V. ~ = bA = _ a~ d. ~ y ~ rn a 4. o O V ~ ~ app ~ i ~ ~ p Vf r.+ ~ J Z C Vf V O V ~ G ~ i+ ~ ~ ~ y ~ Q Z ca cd F. ~ 3 ~ > G=7 H Z Q m W LL J~~ Vhf ~ Vl 0' Z H Study. alleges bias in mortgage loans Page 1 of 1 #c~rTl"Ibt~Cl~.~COi11 I`~~III~~i~1inP`t~~L~:~ - ~T. F~~~L;L; I'41II~°t~-:=~r~`T.~n . Study alleges bias in mortgage loans By H.J. CUMMINS, Star Tribune July 31, 2008 Income does not explain why minority borrowers got a disproportionate number of subprime mortgages in the run-up to the current foreclosure crisis, a study released Thursday concludes. That study also ranked citiesby the mortgage disparities between white borrowers and those from racial and ethnic minorities. Only Milwaukee gave a poorer showing. than the Twin Cities metro area, based on 2006 data the most recent numbers available-- gathered under the federal Home Mortgage Disclosure Act. "The data reminds us that the current housing crisis was overwhelmingly the result of the explosion of bad loan products in financially vulnerable communities," said John Taylor, head of the National Community Reinvestment Coalition, which issued the study. It did not consider credit histories or scores. In the Twin Cities area, middle- and upper-income blacks were three times more likely than comparably paid whites to get loans that carry more expensive terms designed for high-risk borrowers called subprime or "Alt-A" mortgages. Middle- and upper-income Hispanics were 2.4 times more likely; Asians, 1.6 times. The results did not surprise Dave Snyder, a community organizer at Jewish Community Action in St. Paul, one of 600 members of the coalition. "It's not a statistic that stands in isolation," Snyder said. Minnesota has one of the nation's lowest homeownership rates for blacks, and one of the highest for whites, he said. Also among the worst cities in Thursday's report were Huntsville, Ala.; Ann Arbor, Mich., and Hartford, Conn. H.J. Cummins • 612-673-4671 ©2008 Star Tribune. All rights reserved. http://www.startribune.com/templates/Print This_Story?sid=26160124 8/1/2008 Foreclosure pain rises Page 1 of 2 ~~~1t"T~'~~3un@~CUtl'1 I~~'III'~I'~L- ri~'~~LI: T. F~~%L. I~~I~~T~~~~~Tr~ Foreclosure pain rises By JIM BUCHTA, Star Tribune August 14, 2008 The number of foreclosed and other bank-controlled homes on the market in the Twin Cities area has nearly doubled from last year, while the number of traditional listings has fallen 16 percent, according to asecond-quarter report issued Thursday by the Minneapolis Area Association. of Realtors. The report focuses on homes in the Regional Multiple Listing Service that have been foreclosed or for which the lender has agreed to a sale for less than-the mortgage amount, called a "short sale." More than 20 percent of all houses on the market in the metro area are foreclosures or short sales, up from a little more than 10 percent a year ago. In general, the lower the price, the more likely it's a foreclosure or short sale. Aaron Dickinson, an agent with Edina Realty who helped. process the data, said it appears that lenders are offering larger discounts to buyers. The median sale price of lender-controlled listings has fallen 11.7 percent during the past two years, while the median price of traditional listings fell 3.4 percent. "The banks are becoming more motivated to get those properties cleared out," Dickinson said. "They're starting to price more aggressively to get this inventory off the books." Nationwide, in many communities hit hardest by foreclosures, home sales rose during the second quarter, while sale prices fell dramatically suggesting that lenders are indeed working harder to unload those listings. In Nevada, for example, the number of sales during the second quarter rose 18 percent from a year earlier, while the. median sale price in the Las Vegas area fell 24 percent, according to quarterly data released Thursday by the National Association of Realtors. The report said that median home prices fell in more than three-quarters of all U.S. cities. Locally, second-quarter home sales in Minnesota fell 10.8 percent, while the median sale price of existing single-family homes in the Twin Cities area fell 7.2 percent, according to the report. Foreclosure rates across the nation continue to increase. RealtyTrac reported Thursday that nationwide, the number of foreclosure notices sent in July rose 55 percent compared with July 2007 that's one in every 464 households. Minnesota had the 33rd-highest foreclosure rate in the nation. http://www.startribune.com/templates/Print This_Story?sid=27002079 8/15/2008 Foreclosure pain rises Page 2 of 2 The Associated Press contributed to this report. Jim Buchta • 612-673-7376 ©2008 Star Tribune. All rights reserved. http://www.startribune.com/templates/Print This_Story?sid=27002079 8/15/2008 Sheriff s sales are gauge of mortgage defaults Page 1 of 3 :~°~~~Tl'11~1It~~* ~Gi1"f I'-~III'~1I'~1ExF't~~LI;7 - ~T. F'r~L;~ L. I~~ , :=,~T. Sheriff's sales are gauge of mortgage defaults. By KEVIN GILES, Star Tribune August 1.7.,..2008 Last weekend RacheLTusler and her boyfriend, Brad Zach, threw a party at their new house,. once a foreclosed property. The tour included photographs documenting the sweat equity they have put into the Brooklyn Park house since they bought it in March. They spent hundreds of hours ripping out rotting carpet, removing cobwebs and years of grime from the walls and ceilings, replacing moldy floors and painting every room. "It wasn't just acookie-cutter Plain Jane house," said Tusler, 26, a financial auditor at Target Corp. "It has a lot of character. We saw the potential in it." Tusler and Zach are among buyers finding affordable housing as foreclosures mount in metro counties. Sheriffs sales counties use them as a key indicator of the mortgage crisis have ballooned more than sixfold since 2003 in 10 metro counties. An analysis by the Federal Reserve Bank of Minneapolis this spring predicted that several suburban cities were bound for a flood of foreclosures because tens of thousands of subprime borrowers will face higher payments on their adjustable-rate mortgages. Cities as geographically diverse as Ham Lake, Apple Valley, Shakopee, Oakdale, Forest- Lake, Elk River, Albertville and Plymouth will experience problems, the analysis said, because of concentrations of these types of mortgages. Also projected as a trouble spot is Woodbury, where concern over an 82 percent increase in foreclosures since last year led city leaders to create a task force to ease the pain. "We saw the writing on the wall and it didn't look pretty," said city analyst Matt Stemwedel. Woodbury, not. long ago- the metro's fastest-growth suburb, projects 300 sheriffs sales through 2008.-- 10 times the number five years ago. "Woodbury's not immune to that kind of problem," said Stemwedel, who thinks that "problem loans" issued during the city's hot housing market will lead to trouble for more homeowners. All metro counties appear to be on track to exceed last year's sheriffs' sales by big margins, and that's before higher mortgage payments come due this fall. Hennepin County, for example, has seen a record numbers of sheriffs sales, with 3,826 http://www.startribune.com/templateslPrint This_Story?sid=27078804 8/18/2008 Sheriff s sales are gauge of mortgage defaults Page 2 of 3 in the first six months of 2008. Ramsey County's sales soared nearly 800 percent, from 393 in all of 2003 to 1,648 through June of this year. Washington County now is averaging about 100 foreclosures a month, up from a total of 147 in 2003. "It's ultimately a correction to a market that went crazy too long," said Rick Ketterling, who sells houses for Coldwell Banker Burnet in the south metro. "During the hot housing market people sold junk for top dollar and people paid top dollar for junk." Ketterling said he has seen many homeowners who bought houses they couldn't afford. But there's a silver lining, too more buyers, he said, are now seeking to live within their means and more foreclosed houses-are selling. Tusler, the new homeowner, said that the foreclosure market "enabled us to buy our first home within our means." The house, built in 1977, has three bedrooms and three baths, and it brings her back to her hometown after living in a condo in Plymouth. They bought the house on 66th Place North for $148,000, invested $10,000 for repairs and improvements, and figure they got adeal a similar house on the market is priced at $272,000. Tusler and Zach hired an inspector to check the house, calculated the task before them, and decided to buy. But Ketterling warns that lower prices don't always mean a good deal. Many foreclosed houses might require a considerable investment to repair damage, replace missing appliances or install a yard. "If you're struggling, look for ways to reduce your household budget," he said. Even as many people go shopping for bargain houses, more and. more homeowners are finding themselves falling behind on mortgage payments. "We're going to see a continued increase of foreclosures," said Mark Ulfers of the Dakota County Community Development Agency. "What's going on is that a lot of these people are upside down, where what they owe on their mortgages is more than the value of their homes." For example, a condo in Burnsville that sold for $405,000 in March 2007 went through foreclosure and now is selling for $182,900, even though the county's market value is $366,900, said Dan Rogness, an agency'analyst. And asingle-family house in West St. Paul, purchased in November 2005 for $155,000, now is on the market for $100,000 less. The county values that house at $167,000. "Clearly the problem has escalated," Ulfers said. "That's pretty disturbing." Kevin Giles • 651-298-1554 http://wwwatartribune.com/templates/Print This_Story?sid=27078804 8/18/2008 Get ready for a mortgage maze Page 1 of 3 tc~f°~;~`t~Ut~+E~~C~lt1"1 I'~iII'ti~T~I~.~.t~i~~L,a ~T~ F~lt~I~, I'~~II_~:~ti~~C'iT. Get ready for a mortgage maze By JIM BUCHTA, Star Tribune August 21, 2008 The first time Jeff and Dana Prottas applied for a mortgage they weren't surprised that they might have to jump through a few hoops to get an OK from the bank, so they worked hard to improve their credit score. So when they backed away from a complicated deal in which they tried to buy a house from a borrower who owed morethan the house was worth, they thought that getting a mortgage on another, less-expensive house would be a breeze, as they had already been approved. They were wrong. Between canceling that deal and finding a new house in Golden Valley, the mortgage markets continued to unravel, access to credit tightened and the lender who had approved them several months earlier was now asking for a bigger down payment and more detailed documentation, including photocopies of their Social Security cards. "I was almost on my way to the doctor to get a finger pricked to give blood," Jeff Prottas said. Though buying conditions are prime mortgage interest rates are still near historic lows and home prices are coming down at a steady clip coming changes resulting from the continuing credit crunch are going to make getting a mortgage more time-consuming and costly for some borrowers. That's part of the reason that U.S. mortgage applications, particularly for refinancings, have fallen to their lowest level since 2000 and it's why a housing recovery isn't going to happen anytime soon. "The banking industry is running the housing industry," said their Realtor, Sheri Fine of Edina Realty. She says that creditworthy buyers are paying a price for reckless underwriting standards of the past couple of years. "It's almost like the wrong people are getting punished." Despite recent dramatic declines in the value of Fannie Mae and Freddie Mac, the .largest providers of mortgage funds in the nation, mortgage money is still flowing. During the first half the year, Freddie Mac purchased more than $300 billion in mortgages, and at Cornerstone Mortgage, loan officer Ronny Loew said business has steadily improved in recent months as sellers slash prices. http://www.startribune.com/templates/Print This_Story?sid=27254279 8/22/2008 Get ready for a mortgage maze Page 2 of 3 He said that, while access to credit is more difficult and the options are dwindling, the higher cost of getting a mortgage is being offset by lower home prices. "It will be a bit more painful for everyone while the industry works to restore confidence," Loew said. Stull, lenders are continuing to look for ways to offset the risks of being in the. mortgage business these days, most notably the uncertainty of not knowing whether falling prices have bottomed out. Because of that,.. starting in early November, Freddie Mac and Fannie Mae will double the delivery fee they charge their lenders, who often pass that along to borrowers, from. 0.25 to 0.5 percent. On a $185,000 mortgage with a 6.5 percent interest rate, that would translate into ah increase to 6.625 percent. Freddie Mac spokesman Brad German said that's a small price to pay, considering the declines in home prices, On an average monthly mortgage payment "that's less than the cost of a couple of Happy .Meals," he said. Despite the woes associated with Freddie Mac's recently plummeting stock price, German said that the company has not implemented across-the-board increases in the cost of getting a mortgage. Rather, the company has shifted to a nuanced, risk-based pricing strategy aimed at helping certain classes of borrowers. "We are constantly analyzing the market and making adjustments," German said. "It's not all one-way thinking." Similar moves at the FHA The Federal Housing Administration (FHA) is making similar changes. Because of a congressional mandate, it will temporarily increase its down-payment requirement from 3 to 3.5 percent as part of an unusual shift to risk-based pricing aimed at reducing losses from mortgage delinquencies. After becoming virtually irrelevant during the days when no-cost, zero-down and low- documentation conventional mortgage products were common, FHA mortgages now are golden. In June 2007, the FHA provided funds for 625 borrowers in Minnesota, but as access to those Wall Street-funded mortgages dried up, that number increased to 2,200 last June and continues to rise. http://www.startribune.com/templates/Print This_Story?sid=27254279 8/22/2008 Get ready for a mortgage maze Page 3 of 3 All of these changes, including increasing demands for more detailed documentation that adds time and expense to the process, come at a time when many borrowers are having to offer unplanned and larger discounts on the homes they're selling. Prottas, for example, said that he sold their townhouse. for $25,000 to $30,000 less than they had planned, leaving-them with little money for a down payment on their new home. They also spent about $2,500 on temporary housing, appraisals, inspections and other things while they waited for their offer to be accepted, but felt lucky that they sold their ..place for more than they paid for it an achievement in a market where sellers are increasingly upside down on their mortgages. Paul Schuster, vice president of Marketplace Home .Mortgage in Edina and the president- elect of the Minnesota Mortgage Association, said that the same pendulum swing that put borrowers into risky mortgages has swung far the other direction, but appears to be showing some signs of coming back to the middle. "There has been a continual tightening of guidelines, down payment requirements and credit standards," he said. "But in the last couple of months, we have seen some signs that there's more comfort with where the market is settling in terms of value." The irony of having to fight for a mortgage at a time when the housing market decline threatens the stability of the broader economy is not lost on Prottas. "We are responsible individuals who try to make good choices," he said. "I don't understand why in today's economic climate the banking industry is making it more challenging to buy a home." Jim Buchta • 612-673-7376 ©2008 Star Tribune. All rights reserved. http://www.startribune.com/templates/Print_This_Story?sid=27254279 8/22/2008 Can small-town charm be built from scratch? - TwinCities.com Pagel of 5 ¦ ¦ ¦ ~ Can email-town charm be town way of life. bUIIt from SCratch~ Indeed, that is what most of Minnesota yearns for- . even when it doesn't make sense. The small towns of yesteryear are gone, yet they gy Bab gha,,~ grip the imaginations of Minnesotans. From Hudson to St. Paul to Edina, cities fret about losing their Article fast updated: t391C}712008 'f 2:33:47 AM coT small-town charm. Arguments rage and millions of dollars are spent in efforts to preserve or build it. 0 Officials fight against new cell-phone towers, Wal- Marts, freeways and even sewers, worrying about .damage to their small-town identities. Typical is Lake Elmo, where the city is engulfed in a struggle over the Old Village expansion of the downtown area -which developers promise will save the city's small-town charm. "Lake Elmo is hanging on to a vision of who we are as Americans," said John Archer, University of Minnesota professor and expert on suburban development. Some efforts succeed. But critics say many are hopeless -phony attempts to re-create a feeling that left with the Model T. "Creating asmall-town feel happens in a natural way. It is not forced on you by the government," Judy Tschumper is chasing a dream. said Elwood Narum, who is protesting Bumsville's effort to build asmall-town-style city center. 'It's all right here!' she shouted, over the happy racket of a small-town street party in Lakeville on a A growing number of cities are trying to figure out hot August night. why people crave small-town charm. Can it be restored? Should it be? What are the perils of placing Around her was a nostalgic vision of Elvis music, 21 st-century commuters in a 19th-century city flowerpots, dancing children and food stands - a design? throwback to what Lakeville and America used to be. As an old man did the twist beside her, she reveled BUILDING BLOCKS OF CHARM in the restoration of the everyone-knows-you small- Advertisement T~ r~ ~ ~ t ~ e~ +~o nn {~oo~ - _ ~ 013 wk introductory ofFer of _ y 33 /a discount far new subscribers. . ~ ~ ~ ' . . > - ='rl~;t ~~~,r~~a'~~~;, s~ . http://www.twincities.com/ci10397469 09/08/2008 Can small-town charm be built from scratch? - TwinCities.com Page 2 of 5 ~ ¦ Small-town charm is what existed before cars came Meanwhile, air-conditioning and TV kept people along. indoors. Yards and houses became immense. Neighbors became strangers. In frontier towns, people lived near Main Street. Neighbors walked or rode short distances to work, Today, small towns -like small family farms - relax or shop. have losttheir economic reason for being. Yet Archer said they persist, often with government The towns had real history, with real historic subsidies. buildings to match. Homes were built over generations, one by one, in a variety of styles. "America has a huge cultural and psychic love for Houses -and especially yards -were small. small towns," he said. Books, TV and movies perpetrate the idea of small towns as an American Trees arched over narrow streets, small stores ideal. snuggled up against sidewalks and storeowners lived in apartments above. "Where do politicians go campaigning?" said Archer. "To that. coffee shop in small-town Iowa." Businesses were locally owned and unique. Small towns are still what Minnesotans dream of. A "Everyone was asmall-business man," Archer said. Metropolitan Council survey in 2007 showed that of "They had entrepreneurial independence. They were residents who wanted to live somewhere else, two- not cubicle slaves." thirds wanted to live in a small town or rural area. People were physically and emotionally close. Asa " CHARM IS ELUSIVE boy growing up in the '40s, Pete Schiltgen darted in and out of the shops in Lake Elmo, The result is a curious suburban hypocrisy. "Everything was on a first-name basis. You went to At public meetings, citizens argue loudly about the hardware store, and you talked to Gilbert," said preserving small-town charm -then shop at Target Schiltgen, now 76 and a landowner near the future or Wal-Marton their way home. Lake Elmo project. "You went to Mrs. LaRue's candy shop." "Everyone where I live goes to malls in Woodbury to shop, and we all claim to hate it," said state That is what advocates of small-town charm cherish demographer Tom Gillaspy, who lives in rural - the feeling of belonging. "It's when you say 'Hi' to Stillwater. someone and you don't get a dead stare back," said Lakeville Council Member Wendy Wulff. Officials squirm when trying to please a public that demands small-town charm but won't support it. The rise of the automobile unraveled small towns. When customers could drive to bigger stores, they Experts say some cities should just say no. traded their small-town loyalty for convenience and Community boosters often kid themselves about lower prices. their potential "charm" -and spend time and money saving. what can't be saved. Advertisement T~ n C a ~~oo~ s~~-~~~ Co ___-r YrR; - 13 w~ introductory offer of _ _ , /o discount for new subscribers. %=ri~± ~~i~l~~rE~~ f3y~ http://www.twincities.com/ci_10397469 09/08/2008 -Can small-town charm be built from scratch? - TwinCities.com Page 3 of 5 ~ ¦ It's sometimes painful to admit. Lakeville's experience proves small-town charm can be saved -when the conditions are right. 'The Afton of history is gone," said Dave Engstrom, a former mayor of Afton and the director of the Two years ago, the downtown was a dying piece of Minnesota Association of Small Cities. "At one time, Americana. Enggrens' Market, a 100-year Lakeville we had a grocery store and a bank. We will not see tradition, had closed. The vacant store left a gaping that come back." hole on main street. The downtown looked drab and empty. Schiltgen said memories can be sweet, but it's hopeless to try to preserve the history of a small But the area fit the profile of historic places worth town -such as Lake Elmo -without the farms and saving. loyal shoppers that kept them alive, It had historic buildings and a busy road through "We can't go back and recapture the rural character," the downtown. It had a core of small businesses - he said. 30 is the minimum, according to Kurt Hegland, president of a group promoting White Bear Lake's Businesses swept up in small-town nostalgia can historic downtown. go bankrupt. In many cities, including Burnsville, Lake Elmo and Connie Weiss thought she would help revive Afton, squabbling among officials and businesses historic Afton when she opened a store in 2006 has paralyzed restoration efforts. Rosemount called Roses Etc. It was exactly the kind of mom- officials argued for 40 years before agreeing on a and-pop shop that gives an area charm. plan to revive the downtown, said Mayor BiII Droste. But the shop -and some of the charm -vanished In Lakeville, officials and businesses quickly united, this spring. led by the Downtown Lakeville Business Association, with Tschumper as director. Weiss said in Afton there isn't enough historical interest to attract tourists and no "critical mass" of The restoration did not depend on a magical. revival stores to create a shopping destination. of small-town loyalty. Instead, businesses would attract regional shoppers, drawn to a charming, Local support is weak, she said. authentic, anti-malt experience. 'They want to keep everything quaint. But they won't "There is now a need for people to shop there. We shop there," Weiss said. turned it from a service area to a retail area," said Mark Hotzler, a mall developer who owns most of "What are they talking about when they say, 'the the buildings in downtown Lakeville. good old days'? A Jot of people in Afton want no business at all and think that is the 'good old days.' He treated the area like an ailing mall - a " moneymaking enterprise. RESTORATIONS CAN WORK "You have to create that charisma," said Hotzler. Advertisement T - ~ ~ {~ao~ r. - w :a- y.~`. ©13 vu~k introductory offer of . ~ - 33 /o discount for new subscribers. ~ ~ http://www.twincities.com/ci_10397469 09/08/2008 Can small-town charm be built from scratch? - TwinCities.com Page 4 of 5 ¦ ~ ¦ "Then you need to ring that cash register." at ease. The downtown association needed amagnet - "When people know people, they trust people," said. called "anchor" stores in malls - so that mom-and- organizer Tschumper. "You don't get that in big pop stores would benefit from the increased traffic. suburbs." So in the former grocery store, Hotzler built the Atone street party in August, speakers blared '50s Hockey Development Center, where young athletes rock'n' roll as Aimee Martinson watched her 7-year- hone their hockey skills. old son take second place in a hula-hoop contest. Soon, coffee shops and boutiques arrived, To her, small-town charm was easy to define. specializing in serving the hockey moms and dads. "It's events like this," hollered Martinson over the City officials stepped in with money to rebuild music. "Charm has to be there. It's not something historic facades. A new senior housing project you can bring in." helped restore some of the population that had been lost. Entrip Syverson, 72, broke into a sclerotic version of the twist as spectators egged him on. "For the coffee shop, the hardware store -these are their bread-and-butter customers," said business "Small towns have a tendency to die," said Syverson, association President Nancy Smith. Today, unique panting from the effort. "But events like this draw businesses abound, from Kazolly's Sweet Shop to a people together." restaurant that serves wine from an old bank vault. His wife, Sharon, added: "It's asmall-town thing." Like other success stories, downtown Lakeville became a walkable area that, conversely, is Bob Shaw can be reached at 651-228-5433. welcoming to cars. Lakeville has on-street parking and a few lots, but parking ramps have helped spark WHERE'S THE CHARM? other revivals at 50th and France in Edina and Grand Avenue in St. Paul A spot-check of developers, shoppers, professors and officials concludes that historic downtown The final piece in the puzzle was to promote, Stillwater is the most charming small-town area in promote, promote. the metro area. All summer long, the downtown throws a Several towns have only remnants of historic areas "Wednesdays on Main" party in the small park in -too little to salvage. Lakeville's downtown. Other historic areas draw visitors with outdoor movie nights, citywide sales or "I do not put Afton on my list. Afton is not a history-themed festivals. destination," said Dave Engstrom, the former mayor of Afton and the director of the Minnesota Lakeville is now celebrating what was once Association of Small Cities. "Lake Elmo has about as considered-lost - a public place where people feel much charm as Afton." Advertisement TVA' ~'1 ~ ~ 1 {80tI~ ~7~-7'37 Co ~1C1 ~~rt: T.. . ~a 13 wk introductory offer of _ ~ _ discount for new subscribers. http://www.twincities.com/ci_10397469 09/08/2008 Can small-town charm be built from scratch? - TwinCities.com Page 5 of 5 ~ ~ ¦ Others mentioned small towns known for their well- preserved charm: River Falls, Wis.; Lakeville; Chatfield; Pipestone; Montevideo; Lanesboro; and Red Wing . But the voting was not unanimous. Engstrom said Stillwater was choked with tourists and congestion - not the laid-back relaxed style of a true small town. "Hudson is a good example of a small town that still works," Engstrom said. "It survives by tourism, .just as Lanesboro and Stillwater have done." Some historic enclaves exist within cities - Grand Avenue in St. Paul, Uptown and Linden Hills in Minneapolis, 50th and France in Edina ,and the downtowns of Hopkins and White Bear Lake . New developments that successfully re-interpret small-town charm include Liberty on the Lake in Stillwater and Excelsior & Grand in St. Louis Park . - Bob Shaw Advertisement ~0l'~1 . ~;P~ r. 13 wk introductory offer of o 33 ~o discount for new subscribers. _ ~ ~ . http://www.twincities.com/ci_10397469 09/08/2008 That- small-town charm eludes suburbs` attempts to build it - TwinCities.com Page 1 of 4 ¦ That Small-tOWn Gharm Lease"sign. s "This is not what I call small-town:charm," said eludes subur $ atte ~}tS Narum, leader of a group opposing acity-financed tO bu ,t arts center in the flagging project. The lack of street life is not from lack of trying. Burnsville -like more than a dozen metro suburbs Grand projects can leave only controversy and - is trying to create or preserve small-town charm empty storeffronts through various projects. In city-after city, officials say their. residents want it as an antidote to their 13y Bob Shaw soulless garage-door neighborhoods. to s h aw~p i o n ee?~p res s. corn But it's devilishly difficult to ,build. Article Last Updated: 09I08t2008 07:27:40 AM CDT Creating small-town charm -without having a small town -means persuading people to gather - ~ _ F where they didn't congregate naturally before. The standard recipe is to combine small shops, _ .apartments and parks in apedestrian-friendly way. R, But it's easier to build a walkable area than to get ` ~„h~ . ; people to walk there. In some suburbs, the promise . _ _ of re-creating small-town life is as empty as the sidewalks. "Those places can be attractive. But if there is charm, it is faux charm," said Kurt Hegland, president of a group that promotes White Bear Lake's historic downtown. "It is not the same we-have- lived-here-for-100-years kind of charm." Keenan Williams, 4, of Burnsville, looks for some snacks while playing at The projects also can be expensive -and Nicollet Commons Park on August 19, 2008 in-front of amulti-functional controversial performing arts center (background) Keenan Williams and his mother Amber Barger visit the park and shops two to three times a week. (Pioneer Press: Sherri LaRose-Chiglo) BUmSVllle IS Spending $30 million On a new performing arts center to jump-start pedestrian Elwood Narum trudged through Heart of the City, traffic and small businesses in the Heart of the City checking for apulse. -after four developers backed away from the plan. The move has triggered an organized effort to oust He paced the flower-lined sidewalks -empty of the officials who approved it. pedestrians. He peered into dark storefronts, vacant after six years. He shook his head at a "Space for Advertisement T cow rTr ~ - ry J~ ~ ~ s 'f 13 wk introductory offer Of " ` s 33% discount for neW subscribers. _ . _ 'rtt~4 ~~~~~~r~~ F3}~ http://www.twincities.com/ci 10406830 09/08/2008 That small-town charm eludes suburbs' attempts to build it - TwinCities.com Page 2 of 4 ti ~ "It won't work," said Vickie Loher, an ally of Narum's "When you are in the middle of a cornfield trying. to who walked with him through the project. Although build a quaint downtown," Droste said. "A lot of officials say they are in the process of creating old- people would be suspicious." fashioned charm in a modern age,. they have failed, Loher said. COUNTERBALANCE TO ISOLATION "No one wants to give them the bad news. It's like In 1994, Burnsville started not with a cornfield but the emperor's new clothes," she said. a seedy 54-acre patch of dying businesses. There were no historic buildings, no trees, no parks. REINFORCE WHAT'S LEFT The city already had one of the state's largest Sometimes, suburbs build modern small-town business centers, a cluster of conventional malls centers around the smallest scraps of their pasts. along Dakota County Highway 42. But a task force convened to create something special - a One example is Lake Elmo, which doesn't have centralized meeting area with small shops, parks, much real history left - only a handful of flowers and trees. businesses spread over two blocks. "It wasn't some politician doing this," city But suburban planner Bob Engstrom wanted to spokesman Jim Skelly said - it was the residents of replicate the small-town feel. So his Old Village plan the city. "Small-town charm was absolutely the whole would add as many as 1,600 new homes around the idea." historic downtown, along with shops, .parks, sidewalks and - he says -some of the charm of the At that time, Ed Delmoro argued that the small- original. town-style meeting place would counterbalance the isolation of suburban life. 'The small-town charm is not gone forever. What is there can be reinforced," Engstrom said. "Do you want just a place to drive to, open the garage door and watch TV?" said Delmoro, a retired Rosemount only has two historic buildings left in marketing executive. "Hanging baskets are just its downtown. Yet the city has launched a ambience. Charm is the people getting together." revitalization project with a 110-unit apartment complex, parking and space-for small shops. Supporters cited success stories, including 50th and France in Edina and Excelsior & Grand in St. Flowerpots hang from light poles, beckoning Louis Park. pedestrians who have not yet arrived. The task force spawned the Heart of the City - a Mayor Bill Droste hopes a library opening next year $400 million project with a 500-room hotel, park, will be the catalyst that pulls pedestrians and small performing arts center, shops and apartments. business into historic Rosemount. From the beginning, businesses didn't seem to How can a city tell if a revival of small-town charm cooperate. is hopeless? Advertisement ~V1~ 111 ~1 ~ 1 ~5 ~:=-4 ~011r1 (800 678-7737 ~ , f ~w~ _ p~` t - ...r. .+.-rp~,~7~ 13 Vvic introductory offer of e ~ h _ , 33% discount for new subscribrers. ` :'1"Ii1~ i~Ctu~:cr~:il - http://www.twincities.com/ci_10406830 09/08/2008 :That small-town charm eludes suburbs' attempts to build it - TwinCities.eom Page 3 of 4 ¦ Four developers came to Burnsville, promised to Critics of the Burnsville project say officials are build a hotel complex with the center and then blinded by nostalgia and have ignored a long string backed out. They said the same thing -the site ~xf'- of warnings. the market would not support the projects. "It's clear businesses do not think they can make a The project's cornerstone, the Grande Market Place, profit - or they would have been there," said Charlie was completed in 2002. It has several occupants, Crichton, the only City Council member who including one restaurant, but other high-profile opposed the project from the start. "I don't see the restaurant spaces have remained empty for six charm." years. "They put their own judgment ahead of the private The unique shops have been slow to move in. sector. The Heart of the City is an absolute disaster," Some, like the Day Spa 11, opened and then closed. said Gene Happe, a developer who has built 45 commercial buildings in Burnsville. Supporters insist the project is on the verge of a turnaround. "Everyone in Heart of the City is near bankruptcy," Happe said, rattling off names of condo builders Nicollet Commons Park is thriving, visited by and businesses. "My advice to anyone else about 40,000 people each year, mostly for the special small-town charm is: Don't touch it." events and concerts. It sits next to the site of a restaurant under construction, the Mediterranean The plan, critics say,. is fatally flawed. There is no Cruise Cafe. commercial draw, like Trader Joe's at Excelsior & Grand. There is no historic downtown, as in Edina, And city officials have abandoned efforts to get a Stillwater or Lakeville. private developer to build the performing arts center, opting to spend $30 million to build it "Fiftieth and France occurred naturally," Loher said. themselves. "The shops that went in there appealed to shoppers. It became a destination." That's a small price to pay, say supporters, for the regional magnet they are certain will spawn foot SPLIT BY A FOUR-LANE traffic, restaurants and small shops. Loher experienced another drawback firsthand, as "You don't build that as a profit center but as a she scooted across Nicollet Avenue to avoid an catalyst," Delmoro said. oncoming car. City Council Member Dan Gustafson said the Heart The Heart of the City is split by a busy four-lane of the City is "absolutely a success." It is a temporary thoroughfare. victim of a national recession, he said. "Otherwise, all those empty storefronts would worry me," he "I don't perceive this to be pedestrian-friendly," she said. said. 'DON'T TOUCH IT' She said there never will be enough unique mom- Advertisement TVV 11~~t~~~? ~o~ 1 m..~; 13 wk intrflductor~ offer of . . o 33 !a discount for new suk~scribers. . - ?i~it~t F?o~~~~:r<ci E~y _ http://www.twincities.com/ci_10406830 09/08/2008 That small-town charm eludes suburbs' attempts to build it - TwinCities.com Page 4 of 4 y and-pop stores to lure shoppers away from the malls. "There is a flower gift shop. Can I find the same merchandise elsewhere?" Loher asked. Pointing across the street, she said, "Yes, there is ice cream, but is that enough of a draw?" Narum pointed out a vacant bank building on Nicollet. "It moved to the real heart of the city," the retail district on Highway 42, Narum said. Narum and Loher walked through Nicollet Commons Park, where mothers and toddlers cavorted in the water feature.-They sidestepped the spray as one kid squirted water from the mouth of a frog-fountain at his friends. They stopped beside Renne Hagan, who said she has brought her children to the park 20 times since moving to Burnsville in July. "I love this," she said.''I love Burnsville." .But did she support the businesses? To her, it seemed like an odd question. "Only Caribou Coffee and the nail salon," Hagan said. Next to her, Amber Barger, of Burnsville, laughed at her son sliding in a man-made stream. Having grown up in an Iowa town of 4,000, she considers herself an authority on small-town charm. "I like this park. It's pretty," she said. "But it does not have small-town charm." Bob Shaw can be reached at 651-228-5433. Advertisement T~~n~~~ie.~ ~~1 com {~o~~ ~~~-~~~7 ~y 13 wk introductory offer of - ~ 33%° discount for new subscribers. http://www.twincities.com/ci_10406830 09/08/2008 Page 1 of 2 Olson, David From: MN Department of Employment & Economic Development [StateOfMinnesota@ngwmail.des.state.mn.us] Sent: Thursday, September 04, 2008 2:41 PM To: Olson, David Subject:,Moventas Building Plant in Faribault (f ou cannot read this masse e, .please click he..re r .~'Ei ~ ~ i For Immediate Release Contact: Kirsten Morell, 651-259-7161 September 4, 2008 Kirsten.Morell~?astate.mn.us State Lands New Wind-Gear Plant in Faribault Finland's Moventas will bring 100 jobs to southern Minnesota community SAINT PAUL - Moventas, a Finnish builder of gear boxes for wind-power turbines, announced plans Thursday to build a production facility in Faribault . "This is another indication of Minnesota 's growing global influence in renewable energy, particularly wind power," said Gov. Tim Pawlenty. "The United States is one of the fastest- growing wind power markets in the world, and Minnesota is helping to lead the way, thanks to its commitment to alternative forms of energy." Company officials plan to break ground this fall on the 80,000-square-foot plant, which will employ about 100 people, primarily working in assembly and testing. Moventas also announced that a similar production plant will be built in central Finland . The state currently ranks third in the country in wind energy production capacity and is fourth in ethanol production. The governor championed a law approved by the Legislature last year that will requireat least 25 percent of the state's electricity to come from renewable energy sources by 2025. Moventas, a leading supplier of mechanical power transmission equipment, primarily wind gears and industrial gears, selected Minnesota over several states that were competing for the U:S. facility. 09/04/2008 -Page 2 of 2 "We appreciated all the work that Minnesota and local officials put into making Faribault an attractive site," said Jim Bjork, the company's vice president of North American expansion. "We're looking forward to a long and healthy relationship." Along with the Minnesota Department of Employment and Economic Development, officials from the city of Faribault, Rice County ,Great. River Energy and the Minnesota State Colleges and Universities system helped recruit Moventas. State officials said incentives offered under the state's JOBZ program were essential in Moventas' decision to come to Faribault . JOBZ, which stands for Job Opportunity Building Zone, offers tax-free development opportunities to companies that start up or expand in targeted areas of Greater. Minnesota. Moventas officials said production at the Faribault and Finnish facilities will begin at the end of next year, reaching full capacity by early 2011. The company said the wind energy market is growing by 30 percent annually worldwide and that the two new facilities will enable it to capture a larger share of the global market for wind turbine gears. --30-- Upon request, the information in this news release is available in an alternative format such as braille, large print, audiotape or computer disk. Ti~is message was sent to doison@ci.iai<eville.mn.us by: ~11_Y Depa.rtment._of._E..m~lojrrnent .E.conorn.c De...veloprs~e.nt (Monte har3son.@state.mn.us} 332 Minnesota Street Suite E200 St. Paul, MN 551(31-1351 e 800-657-3858 Subscribe • l3nsubscribe 09/04/2008 Page 1 of 3 Olson, David From: MN Department of Employment & Economic Development [StateOfMinnesota@ngwmait.des.state.mn.us] Sent: Thursday, September 18, 2008 9:41 AM To: Olson, David Subject: August Employment Figures I# ou cannat read this messa e, please click h..e....re ~ ~ ~ _ ~ ~ ~ 1~ i ~ ~ i,b~s r ~ ~ _ i For Immediate Release Contact: Kirsten Morell, 65.1-259-7161 September 18, 2008 Kirsten.Morell(a~state.mn.us Jobs Decline by 3,100 in August Unemployment rate, stands at 6.2 peYCent ST. PAUL -Following national trends, Minnesota employers dropped 3,100 jobs in August, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). Over the past 12 months Minnesota has lost 8,200 jobs, a decline of 0.3 percent, equal to the national pace for that period. The seasonally adjusted unemployment rate in the state stands at 6.2 percent for August; the national rate is 6.1 percent. "Employers are becoming more cautious about hiring as the national economy has slowed down," said DEED Commissioner Dan McElroy. "Some areas of the state economy have managed to buck the trend, especially the Financial Activities and Trade, Transportation and Utilities sectors." The state gained jobs in August in Trade, Transportation and Utilities (up 4,100), Government (up 1,100), Education and Health Services (up 500) and Financial Activities (up 300). Natural Resources and Mining held steady for the month. Job losses were posted in Professional and Business Services (down 3,700), Manufacturing (down 2,900), Leisure and Hospitality (down 1,100), Construction (down 500), and Information (down 400). 09/18/2008 Page 2 of 3 Over the past 12 months, growth in the Financial Activities sector remains positive, adding over 2,500 jobs or 1.4 percent, led by growth in insurance carriers. In addition to Financial Activities,. Minnesota is outpacing the nation in Construction; Manufacturing; Trade, Transportation and Utilities; and Government over the year. Employment in the Minneapolis-St. Paul Metropolitan Statistical Area has dropped 0.2 percent in the past year with the loss of 3,500 jobs. In other Minnesota metropolitan areas over the past year, Duluth-.Superior grew 0.1 percent with 100 additional jobs, Rochester grew 0.8 percent with 900 jobs, St. Cloud held steady, Fargo-Moorhead increased 0.9 percent with 1,000 jobs and Grand Forks grew 2 percent with 1,100 jobs. These figures are not seasonally adjusted. DEED also announced job vacancy results for the second quarter of 2008. Employers reported 51,700 vacancies across a variety ofoccupations, 17.3 percent fewer than the same period one year ago. Between April and June of 2008, there were approximately 2.9 unemployed people for each vacancy statewide. Almost 60 percent of the job vacancies are located in the seven- countymetropolitan area of Minneapolis Saint Paul, which is similar to the distribution of the state's population and total number of jobs. "The largest sector for vacancies continues to be health care and social assistance, with approximately 22 percent of the state's vacancies," said Oriane Casale, DEED's Labor Market Information office assistant director. For additional information on the August employment information and Job Vacancy Survey, please visit www.positivelyminnesota.com. Job opportunities are available at www.MinnesotaWorks.net, the state's largest online resume and job matching system, which uses cutting-edge technology to help connect employers and job seekers at no fee. Seasonall adjusted Not seasonall adjusted Unemployment August 2008 July 2008 Rate Minnesota 6.2% 5.8% U.S. 6.1% 5.7% Employment August 2008 July 2008 Aug. '07-Aug. Aug.'07-Aug. '08 Level 08 Percent Chan a Chan e Minnesota 2,767,600 2,770,700 -8,200 -0.3% U.S. 137,473,000 137,557,000 -403,000 -0.3% Over-the-Year Em to ment Growth b Indust Sector SA OTY Job OTY Growth US OTY Chan a Rate % Growth Rate Total NonFarm Em to ment -8,200 -0.3 -0.3 Natural Resource & Minin =:100 -1.3 8.6 Construction -7,100 -5.3 -5.6 Manufacturin -9,700 -2.8 -3.0 09/1.8/2008 Page 3 of 3 Trade, Trans & Utilities 2,700 0.5 -1.1 Information -1,100 -1.8 -1.4 Financial Activities 2,500 1.4 -1.2 Prof & Business Services -7,900 -2.3 -0.9 Ed & Health Services 8,900 2.1 3.2 Leisure & Hos italit -500 -0.2 1.0 Other Services -1,500 -1.2 0.5 Government 5,500 1.4 1.2 Over-the-Year Em to ment Chan e b Metro olitan Statistical Area OTY Employme~f OTY Employment .Metro olitan Statistical Area Chan e % NSA Chan e # NSA Minnea olis-St. Paul MN-WI MSA -0.2% -3,500 Duluth-Su erior MN-WI MSA 0.1 % I00 Rochester MSA 0.8% 900 St. Cloud MSA 0.0% -40 Far o-Moorhead ND-MN MSA 0.9% 1,000 Grand Forks ND-MN MSA 2.0% 1,100 Upon request, the information in this news release is available in an alternative format such as braille, large print, audiotape or computer disk. This message was sent to doison@ci.lakeville.mn.us by: MN_Department ®f_E.m.plo~rment & Ecanomic Develcs~.ent (monte.hanson s...tate.mn.u_s) 332 Minnesota Street Suite E200 St. Paul, MN 55101-].351 • 800-657-3858 Subscribe • Unsubscribe 09/18/2008