HomeMy WebLinkAbout12-30-10City of Lakeville
j Z 'W-Ii�UIL 2 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: December 30, 2010
Subject: December Director's Report
The following is the Director's Report for December, 2010.
ARRroval of the 2011 -13 Strategic Plan for Economic Development
The City Council unanimously approved the EDC recommended 2011 -13 Strategic
Plan for Economic Development at their December 6, 2010 meeting. The City
Council also approval the 2011 CDBG Application to the Dakota County CDA that
includes a request for $27,680in funding for a Marketing Plan / Study which is one
of the identified goals of this new plan. The first meeting of the EDC Marketing Plan
Subcommittee will be scheduled after the first of year.
Building Permit Report
The City issued building permits with a total valuation of $51,104,857 through the
end of November. This compares to a total valuation of $68,897,255 during the
same period last year. The City had a total valuation of commercial and industrial
permits through November of $3,686,000 which compares to $7,196,500 through
November of last year.
The City also issued permits for 119 single family homes through November with a
total valuation of $32,871,000. This compares to permits for 114 single family
homes with a total valuation of $31,800,000 through November of last year.
The 2010 year _end building permit totals will be available next week and will be
included in Business Bullets scheduled to be sent out Friday, January 7th
Foreclosure Update
Attached is a copy of the November Foreclosure Update from the Dakota County
CDA. There were 24 Sheriff Sales in Lakeville during the month of November which
is same as the previous month. There have been a total of 305 Sheriff's Sales in
Lakeville through November of this year. This compares to the 257 Sheriff' Sales
through all of 2009.
EDC Reappointments
The City Council re- appointed EDC members Matasosky, Schubert and Starfield at
their December 20, 2010 meeting. They also agreed with the EDC's
recommendation to not fill the Alternate member position on the EDC at this time.
Dakota County Tribune Article on Airlake Industrial Park
Included in this report is an article that appeared in the Dakota County Tribune on
December 23 It provides a brief overview of the history of Airlake Industrial Park
as well as citing the economic benefits derived from the Park. If you have not had a
chance to read it yet, I would encourage you to do so.
Holiday Wishes
On behalf of myself, Adam and other staff at City Hall, we have all enjoyed working
with all of you this past year and we are looking forward to the exciting
opportunities to hopefully expand our City's business community and improve our
local economy in 2011. Please have a safe and enjoyable New Year's Holiday.
Airlake Industrial Park manufactures big results for
re ion
Posted under Lakeville Metro Business News on Monday 20 December
2010 at 1:27 pm
by Kevin Stirtz
Dakota County Tribune
What do hot rods, frozen food,
artificial hips, hair shampoo and
books on how to blacksmith have in
common?
One man who knows the park well says Lakeville is fortunate to have it here. David
Olson, the city's director of community and economic development, said that "Airlake
Park has been a tremendous benefit to the city of Lakeville over the years."
Olson said the park is something many people in the area might not know about because
of how Lakeville has developed.
"The city of Lakeville has grown up around Airlake Industrial Park," he said, noting that
when the park was conceived some 40 years ago Lakeville was mostly open land. Most
of the development in Lakeville is north of Airlake Park, so it's easy to miss.
That open land Olson referred to was a major reason Airlake Park's original developers
located it where it is. And the property has a rail line and close access to County Road 70
and Interstate 35, giving it a big transportation advantage over other locations.
To make the park even more enticing to business owners and executives, the developers
added an airport that can accommodate corporate jets and helicopters. In fact, today 10 to
15 percent of the park's businesses use the airport, said Jack Matasosky, president of
APPRO Development, which has been involved with Airlake for some 30 years.
While the little airport is a nice luxury for the corporate executives who fly in and out on
business, the airport has recently taken on a more important, even life- saving, role for the
southern metro area.
Four years ago, North Memorial Health Care opened an air ambulance service at Airlake
Park's airport .
"This fills a gap in our service area,"
said Mike Parrish, vice president of
Primary Care Operations for North
Memorial, who is responsible for the
air ambulance service. "Now we can
offer a much faster response time to
people in the south metro than ever
before."
Parrish noted that the air ambulance
can actually land at the scene of an accident to ensure victims get the care they need as
fast as possible. "After a serious accident, seconds count," Parrish said.
With 1,500 acres, 120 businesses and roughly 4,200 jobs, Airlake Industrial Park is
undeniably an economic engine for the Lakeville area.
According to the Metropolitan Council, there are 18,503 jobs in Lakeville. That means
Airlake Park accounts for just over 22 percent of all jobs in the city. Even better, many of
these are technical, engineering and managerial.
"For example, Mendell is full of computer wizards," said Matasosky. "Those jobs pay
extremely well."
Matasosky added that about 80 to 90 percent of the businesses in Airlake Park are owner
occupied, meaning they are locally owned businesses. And many of these owners live in
Lakeville or the surrounding area, meaning their income has an even greater local impact.
Another important measure of economic impact is tax revenue generated by Airlake Park.
According to the city, Airlake Park, as a whole, pays over $4 million a year in local taxes
to the state, county, school district and city.
But the benefit of a development like Airlake Park goes beyond raw numbers. There are
other important benefits a place like Airlake Park creates.
Carl Tuttle, vice president of operations and corporate strategies for Bellisio Foods, said
Airlake gives Bellisio an edge in recruiting new employees.
"Being here gives us a definite advantage in our recruiting," he said. "Because the park
has so many businesses, it draws more people from temporary agencies, so we have a
larger pool of potential employees to choose from."
Alan Krysan, president of Finney Co., also sees operational benefits for his company now
that it is located in Airlake Park, after moving from St. Louis Park.
"About 70 percent of our employees live in the area so we no longer worry about snow
days," Krysan said. "We're a top -five book distributor in Florida. Our customers there
don't care if Minnesota had a blizzard last night. They want their books."
Krysan also sees a productivity advantage to having employees live close to home, as
many in Airlake Park do. "We no longer have the stress and venting time every morning
due to bad weather and traffic," said Krysan. "You'd be surprised what a difference that
makes in a small company."
" Airlake Industrial Park is a valuable asset to Lakeville and the area. We're happy to
have them here," said Todd Bornhauser, executive director of the Lakeville Area
Chamber of Commerce.
Bornhauser's comment sums up the
reason Airlake Park seems to work so
well. There is a strong partnership
among the city of Lakeville, the
Chamber of Commerce and the people
who manage and develop Airlake
Park. And from a tenant's perspective,
they work together very well.
The city of Lakeville's Olson affirmed the city's commitment to this collaborative effort.
"We work hard to partner with Airlake Park and the chamber to make Lakeville a good
home for businesses."
If the city and chamber welcome Airlake Park's businesses with open arms, many of
those businesses seem to reciprocate. Bornhauser noted that, citywide, about one -third of
all businesses are chamber members. Yet in Airlake Park that share is closer to 50
percent.
For many residents of the south metro area, Lakeville's Airlake Industrial Park remains a
hidden giant. But whether you've never heard of it or you've worked there for 30 years,
Airlake Park continues to have a positive impact on the Lakeville area and its people.
CDA Dakota County
, Community Development Agency
......................
To: Dakota County Cities
From: Dan Rogness, Director of Community Revitalization
Date: December 14, 2010
Re: Foreclosure Update
HOME
OWNERSHI P
c'te
FTC Issues Mortgage Assistance Relief Services (MARS) Rule
The Federal Trade Commission has issued a final rule aimed at protecting struggling
homeowners from for - profit mortgage relief companies. One of the most important
protections under the new rule is that companies can no longer charge advance fees for
services. The rescue companies cannot charge a fee until the homeowner has been provided
with a written offer from the lender that the homeowner decides is acceptable, and written
documentation from the lender describing the key changes to the mortgage if the offer if
accepted. It is already illegal in the state of Minnesota for companies to charge upfront fees for loan
modification services.
In addition, the companies must disclose:
• they are not associated with the government and the services have not been approved
by the government or the lender
• the lender may not agree to change the borrower's loan
• if the company tells the borrower to stop making the mortgage payment, they must also
tell them that they could lose their home and damage their credit rating
The new rule also prohibits companies from making false or misleading claims, including:
■ the likelihood of consumers getting the results they seek
■ the company's refund or cancellation policy
■ the amount of money a consumer will save by using the service
■ the cost of services
All portions of the MARS Rule will become effective as of December 29, 2010, with the
exception of the advance -fee provision, which will become effective January 31, 2011. For
complete details, including an attorney exemption policy, please see
http://www.ftc.gov/opa/2010/1 I /mars.shtm
Holiday Foreclosure Freezes
Fannie Mae and Freddie Mac have announced that they will suspend foreclosure evictions on
their loans from December 20 —January 3. The freeze will not prevent lenders from scheduling
foreclosure sales or resuming evictions immediately outside of the timeframe.
H 0 M
CDA Dakota County OWNERSHIP 1111
Community Development Agency r K4ezti `f'i
0*000000000600000*0 ...
Dakota County Stats — November 2010
• # of Sheriff Sales in November — 162 (compared to 141 in November 2009)
• Total Sheriff Sales for 2010 — 1,841 (compared to 1,704 in Jan.- November, 2009)
• # of Notices of Pendency Filed in November — 193
• Total Notices of Pendency Filed for 2010 — 3,417
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 /dakotaneteis/
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:
Minnesota Housing awarded the Minnesota Home Ownership Center $1 million to aid
in filling a funding gap that threatened the jobs of housing counselors within the Home
Ownership Center's network.
• Some investors who bought bonds backed by bad loans are beginning to challenge
mortgage services to determine who should take the loss for billions of dollars worth of
failing mortgages.
If you have any concerns, please call me at (651) 675 -4464 or send me an e-mail at
drogness (g -dakotacda.state.mn.us
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