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HomeMy WebLinkAbout03-22-11City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, March 22, 2011, 4:30 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN Call meeting to order 2. Approve February 22, 2011 meeting minutes 3. Update on Marketing Plan Subcommittee 4. Discussion of Economic Development Incentive Toolbox 5. Director's Report 6. Adjourn Attachments: February, 2011 Building Permit Report February, 2011 Foreclosure Update "Census: Lakeville's Population up 30 Percent, Minority Populations More Than Doubled ", LakevillePatch March 17, 2011 "Gander Mountain; Taking aim at the competition," StarTribune.com March, 14, 2011 "Bill could change tax increment rules ", Dakota County Tribune Business Weekly March 10, 2011 "Manufacturing recovery quickens, StarTribune.com March 1, 2011 "Cuts in federal block grants could hit home ", StarTribune.com February 23, 2011 City of Lakeville Economic Development Commission Meeting Minutes February 22, 2011 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Brantly, Longie, Tushie, Vlasak, Emond, Schubert, Ex- officio member Mayor Mark Bellows, Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser, Ex- officio member City Administrator Steve Mielke. Members Absent: Comms. Smith, Starfield. Others Present: David Olson, Community & Economic Development Director; Penny Brevig, Recording Secretary. 1. Call Meeting to Order Chair Matasosky called the meeting to order at 4:35 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota. 2. Approve January 25, 2011 Meeting Minutes Chair Matasosky suggested the following change to the January 25, 2011 meeting minutes on page 2, the last paragraph: "Mr. Mielke concluded the discussion by stating that the issue will be discussed by the Planning Commission at a..future meeting and all business and property owners potentially..." Motion 11.04 Comms. Tushie /Schubert moved to approve the minutes of the January 25, 2011 meeting as amended. Motion carried unanimously. 3. Presentatiori of 2010 Annual Report Mr. Olson preserited the 2010 Annual Report. Chair Matasosky asked about the occupancy in the Meadowlark Townhomes, which are workforce housing units. Mr. Olson indicated that they are fully occupied with a waiting list. Mayor Bellows asked if Dakota County asks the potential residents of Meadowlark Townhomes how long they have been a resident in Lakeville. Mr. Olson did not know if this was a consideration or not. Economic Development Commission Meeting Minutes February 22, 2011 Mr. Olson commented that the numbers can be skewed for some of the metro city's housing unit numbers in years when they have one or more multi family projects being built. 4. Update on Marketing Plan Subcommittee Mr. Olson reviewed the EDC memo which provided an update on the activities of the Marketing Subcommittee. He indicated that the newly appointed Subcommittee member was Clinton Kennedy. Mr. Olson stated that they will continue to meet approximately twice per month and update the entire EDC.-'at regular intervals to inform them of their progress and see input as needed. Mr.' Olson indicated that due to Mr. Kienberger's absence, he would like to reschedule Thursday's meeting. Chair Matasosky and Comm. Brantly thought the Subcomittee had made a good start and are overall excited about this. Mr. Mielke asked how much funding will be anticipated for this project. -Mr. Olson indicated that it will be a two -phase approach; strategy and then implementation. Mr. Mielke asked the Subcommittee to come up with how much money would need to be secured for the 2012 budget. 5. Continued Discussion of Tax Increment Financing Policy Mr. Olson reviewed the EDC memo and requested comments and feedback regarding the proposed TIF Policy. Chair Matasosky commented that all inquiries that APPRO Development gets these days ask for incentives. The Commission felt that.TIF was an excellent incentive, but agreed that everything that the City can offer as incentives should be put together into one tool box to offer prospects. Other ideas, which may -not all be financial incentives, would be targeting for rriedical providers and business schools, promoting the amount of land available, devel©pirig regional stormwater ponding. A suggestion was made that there may be more value., in having regional stormwater ponding rather than small ponds everywhere; and that way, the City would take care of that rather than individual developers. Mr. Olson indicated that staff will bring this back to the next EDC meeting with a more comprehensive approach. 6. Continued Discussion of Business Retention Program Guidelines Mr. Olson reviewed the EDC memo, which indicates a couple options for the Spotlight on Business program and staffs recommendation regarding the Business Visit program. He asked for input on the suggested business retention program guidelines which were outlined in the memo. 2 Economic Development Commission Meeting Minutes February 22, 2011 The Commission decided that geographic location would be the best option for spotlighting businesses. Mr. Olson indicated that he will concentrate on the Downtown area in the next six months then. The suggestion was made that perhaps Todd Bornhauser from the Chamber of Commerce could come to the City Council meetings and promote the new businesses. Mr. Bornhauser agreed that highlighting the new businesses would be good, whether it's on television, press releases, or on the Chambers, City of Lakeville's, or the new www.patchlakeville.com websites. Chair Matasosky excused himself from the meeting at 5:30 p.m. 7. Director's Report Mr. Olson reviewed the Director's Report. He commented._ on the Malt -O -Meal expansion that was on the February 17, 2011 Planning Commission agenda. Mr. Olson stated that the Planning Commission recommended approval of a consent resolution by the City to allow Malt -O -Meal to expand their parking lot as well as possibly construct a second building on property they acquired form New Morning Windows that contains a conservation easement. He indicated that Malt -O -Meal has agreed to provide an increased landscaped buffer to the north, which will include 20 foot tall White Pines. Malt -O -Meal has also agreed to limit the height of any future buildings to two stories. Mr. Olson stated that the City Council is scheduled to consider this at their March 21, 2011 meeting. 8. Adjourn The meeting was adjourned at 5:35 p.m. Respectfully submitted by: Attested to: Penny Brevig, Recording Secretary R. T. Brantly, Secretary 3 ': �_, '" 1 0 1 i - City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission Steven Mielke, City Administrator From: David L. Olson, Community & Economic Development Director Copy: Adam Kienberger, Economic Development Specialist Date: March 18, 2011 Subject: Review of Outline for Development of Incentive Toolbox The review of a proposed Tax Increment Financing Policy was on the agenda and discussed at the February EDC Meeting. It was the consensus of the majority of the EDC members at the meeting that a discussion of the entire Toolbox of Incentives rather than a review of a policy for a single tool should be pursued first. Staff has attempted to develop a flow chart for this discussion that starts with the Strategic Plan and ends with the development of policies for the implementation of the specific tools. As has been discussed previously, identifying the available tools is fairly straightforward. The issues become more complex when the City has to determine when the tangible tools that involve financial assistance are to be offered and for what type of projects. The City is also required to review the "but -for test" for projects that are provided financial assistance. If the EDC is in agreement with this flow chart / outline, it is staff's recommendation that the attached draft Business Subsidy Policy that the EDC recommended to the City Council in April of 2010 be reviewed again. The City Council reviewed this policy at its July 26, 2010 Work Session with several EDC members in attendance. No action was taken on this policy pending the completion of the Strategic Plan. This policy attempts to identify the criteria by which any project will be considered for a financial incentive. This document becomes the basis on which policies for specific tools are based and thus a decision needs to be made as to whether any changes or additions to the draft policy that was prepared last year are warranted. Finally, staff has also prepared a draft list of items to be included in Lakeville's Economic Development Toolbox. This list will eventually be available on the City's website along with additional information on the specific tools listed. It also incorporates some of the "intangible" tools such as the City's business practices and community attributes. Action Requested EDC consensus on the outline of the process and consensus on the proposed wording contained in the overall Business Subsidy Policy. Once that is achieved, staff will continue to develop the more specific policies for the various incentive tools and bring all of these specific policies back for review and consideration by the EDC. Strategic Plan for Economic Development Goal #2 Development of an Incentive Toolbox Business practices 0 Intangible � Competitive fees Toolbox ) Tangible ($) Community attributes (marketing) Policy Guidance Examples of Goals for Economic Development (Adopted by Council) ■ Sector specific goals (i.e. medical) ■ Goals of Economic ■ Job growth Development ■ Tax base growth ■ "Tool" policies ■ Business /job retention Policy Implementation by Economic Development staff ■ Implementation of "tools" on Economic Development projects • Determination of need • Determination of ROI • Application of business subsidy policy • Application of "tool' policies ApH , 2010 DRAFT CITY OF LAKEVILLE BUSINESS SUBSIDY POLICY This Policy is adopted for purposes of the Business Subsidies Act (the "Act "), Minnesota Statues, Sections 1163.993 through 116).995. Terms used in this Policy are intended to have the same meanings as if used in the Act, and this Policy shall apply only with respect to "subsidies" as defined by the Act if and to the extend required thereby. The City of Lakeville and the Lakeville Economic Development Commission maintain several policy documents which speak to the general goals and objectives for the provision of public assistance for private development or redevelopment activities. These documents include, but are not limited to the current Strategic Plan for Economic Development and the Private Activity Bond Issuance Policy. The City of Lakeville has determined that in order for any project to be considered for financial assistance, a finding is needed that determines that, "but for" the City's assistance, this project will not occur or will not occur within a reasonable amount of time. The City will also need to demonstrate a return on its investment based on one or more of the public benefit categories listed in this Policy. Because projects vary greatly in structure and public benefit derived, each project will be considered on its own merits. Consideration will be given to projects providing public benefits in one or more of the following categories: 1. The creation of new jobs /increase in total payroll. In the case of new job creation, new jobs must pay an average wage equal to the minimum wage level for business assistance programs administered by the Minnesota Department of Employment and Economic Development for cities located in the seven county metropolitan area (currently $13.00 per hour). Preference will be given to higher paying jobs that also provide benefits such as health care coverage. 2. Projects that provide value in the forms of needed transportation and other utility infrastructure improvements in the community that would be completed in conjunction with the project. 3. Redevelopment projects that result in the stabilization of business districts or neighborhoods by elimination of blighting conditions. 4. Projects that enhance or increase the economic diversity of the community by attracting businesses or industries not currently located in the City. New job wage requirements will apply to any new jobs created. 5. Quality of Life based on business/ projects. Those business /entities that provide a desirable good or service and address an unmet demand in the community will be considered. New job wage requirements will apply to any new jobs created. 6. Retention of existing jobs. To be considered under this category, it must be demonstrated — to the satisfaction of the City - that the loss of jobs is specific and can be demonstrated. 7. If a particular project does not involve the creation of jobs, but is nonetheless found to meet another public purpose of the City it may be considered without any specific job wage goals, as permitted by Minnesota Statutes. This public purpose has to be something other than an increase to the City's tax base. Other measurable, specific and tangible goals must be established. Examples of tangible goals may include redevelopment or clean -up of a contaminated site or increased tourism. Each project shall not only be evaluated against the Business Subsidy Policy but also against other applicable City of Lakeville or Economic Development Commission policies, including the Comprehensive Guide Plan, current Strategic Plan for Economic Development and Private Activity Bond Issuance Policy. The level of assistance to be provided for any project is at the discretion of City of Lakeville. Because it is not possible to anticipate every type of project which may in its context and time present desirable community building or preservation goals and objectives, the governing body must retain the right in its discretion to approve projects and subsidies which may vary from the principles and criteria of this Policy. The burden will be on the applicant to demonstrate, to the satisfaction of the City of Lakeville, that the public benefit justifies the requested subsidy. In all cases of business subsidy, where the subsidy is equal to or greater than the threshold prescribed in Minnesota Statutes, a subsidy agreement will be entered into between the City and the recipient. This agreement will delineate the subsidy structure and amount, as well as the expected public benefit. The agreement will include provisions for repayment and other resolution options if the expected public benefit is not achieved. All business subsidies will be subject to the criteria outlined in Minnesota Statutes, Section 1163.933 through Section 1163.955 except those subsidies as exempted by same. City Council Work Session Minutes July 26, 2010 Page 2- am O'Connell presented the Implementation Plan update and gave a detailed overview of th revisions that have been made to the original plan that was drafted in 2004. The UPA and mprehensive Plans have helped to project needs and direct the plan to where it is now. It i nticipated that several items will fluctuate before the transit stations are operational; wever, several major considerations were given to the functionality of the facilities. Rider ip projections are based on a model but are difficult to accurately forecast as are the future ne s of the residential and business communities in the BRT corridor. Stakeholders have exp sed they want transit services that are fast, easy, and reliable. Two walk -up station locations a been added to the plans at 161s' Street and Glacier Way to serve the local neighborhoods d businesses. At the completion of the project in 201 , rovided there is adequate ridership, there will be a direct connection from Lakeville into dow wn Minneapolis. There will be many BRT special service potentials other than commuting work, such as trips to special events, shopping, and Target Field. Council members aske bout an east -west transportation plan that would move riders from the 35W station to Apple ley then to downtown St. Paul. a The 30-day comment period for the Regional Railroad Auth will end on August 13 and if they feel comfortable may adopt this plan on August 24 A fi document with then be available by September 1 for adoption by Lakeville City Council. Th an will then be forwarded to the State and the Federal offices for their final review and app al. This item will be placed on an upcoming Council agenda for formal approval. ITEM #2 — Business /assistance Policy Dave Olson introduced EDC members Jack Matasosky, Sheila Longie and Gary Tushie. At the April 27, 2010 Economic Development Commission meeting an update to the 2003 business subsidy policy was discussed and a recommendation was made to bring a revised policy to City Council for consideration. A revised policy would establish criteria and give staff direction to answer inquiries regarding the availability of assistance for businesses that are considering locating in Lakeville. The draft policy recommended by the EDC includes a provision referred to as the "but for" which indicates that the project would not be possible without assistance from the City. The EDC is recommending seven criteria need to be met by the business to qualify for assistance: 1. Creation of new jobs in the community with a minimum wage equal to that of programs administered by MnDEED. 2. Provide value in the form of needed transportation or utility infrastructure. 3. Redevelopment projects that stabilize or improve neighborhoods. 4. Projects that increase the economic diversity in business and industry. 5. Enhance the quality of life for Lakeville residents. 6. Retention of existing jobs, such as expansion of an existing business. 7. Proiects that address a community need or provide a public benefit. City Council Work Session Minutes July 26, 2010 Page -3- State statutes require that a policy be adopted. Administering the subsidy program requires public hearings and other provisions. Two of the most common subsidy tools are Tax Increment Financing (TIF) and tax abatement however there are no current policies in place for these specifically. Council has also adopted a policy on private activity bond issuance when Highview Hills was being built. At Council's direction, this will be placed on a future agenda to be followed by further discussions on the strategic planning process. Commissioner Matasosky believes the most important aspect of the policy is to give City staff a "toolbox" of options and opportunities to share with existing and new businesses and to keep Lakeville competitive with outstate and out of state businesses. He would like to see an ROI study to forecast how the potential assistance would impact the community. Commissioner Longie stated that her focus would be on retention of existing businesses, especially those that are currently financially insecure due to the economic downturn. Commissioner Tushie recalled discussions of 20 years ago regarding how to best help the city to progress and at that time the need was for upscale housing for the owners and top executives of the businesses. As the times have changed, surrounding communities are more built out and Lakeville still has a lot of undeveloped land that can provide a tool for the city to grow. Infrastructure is a major component of growth and needs to be considered. Steve Mielke stated that not all assistance is of a financial nature. This policy will give staff the opportunity and the guidelines to have a conversation with potential Lakeville businesses to determine if some assistance could affect their decision of where to locate. The question should not only be What can the City do for the business, but also What can the business do for the community. In response to Council's questions, the EDC would like to maintain flexibility and try to distinguish Lakeville from other communities and capitalize on the City's amenities. TEM #3 — Service Prioritization Discussion At t 'r March work session Council discussed various tools that would help in the budget decision aking process. One of the tools is the recently completed community survey, another is th o-year budget, and other is to prioritize various city services. This model started in )efferso ounty, Colorado several years ago to assist with fiscal management. The City of St. Cloud has us this model to apply standards to provide an objective outcome to the budget and has promote . at the League of Minnesota Cities Conference. The prioritization method breaks servic into two components - internal (organization) and external (public services). Staff has identifie nd established eight criteria for the external services. Each of those eight categories was giv a numerical ranking; they were then sorted in order of highest to lowest priority based on a number of points. The eight categories were: City of Lakeville Economic Development Toolbox • Financial Incentives • Business Practices • Community Attributes ■ Tax Increment ■ Brainstorming ■ Critical mass of Financial Sessions to identify businesses ■ Tax Abatement client needs ■ Excellent proximity ■ Development fees ■ Competitive fees to major ■ Water utility ■ Streamlined transportation program permitting and corridors ■ Industrial approval process Revenue Bond ■ Combined financing preliminary and final platting State of Minnesota Department of Employment & Economic Development (DEED) • Minnesota Investment Fund (MIF) - http•/ /wwwpositivel3Minnesota com/Business /Financing a Business /DEED Business Finance Programs /Minnesota Investment Fund.gVx Utility Company Prop-rams Xcel Energy • http•/ /www xcelenergy .com /Minnesota/Business /Pro rg ams Resources /ConservationRebates In centives Business/Pages /Save on energy bills earn our rebates.aWx Dakota Electric • hqps://www.dakotaelectric.com/business/ g and loans /rebates grants an d loans Minnesota Energy Resources • htlp : / /wwW.minnesotaenergyresources .com/business /default.aspx CenterPoint Energy • http•/ /www centelpointenergy com / services /naturalgas/ business /rebatesforbusiness /MN/ Private Lending Institutions • List of Lakeville banks City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community and Economic Development Director Copy: Steve Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: March 18, 2011 Subject: March Director's Report The following is the Director's Report for March, 2011. Building Permit Report The City issued building permits with a total valuation of $5,549,087 through February. This compares to a total valuation of $6,885,061 though February of 2010. The City issued commercial and industrial permits with a total valuation of $379,500 through February compared to a total valuation of $485,000 through February of 2010. The City also issued permits for 14 single family homes through February with a total valuation of $4,294,000. This compares to 18 single family home permits through February of 2010 with a total valuation of $4,673,000. Development Update Gander Mountain: The City will soon be issuing a building permit for the renovation of the existing Gander Mountain store in Lakeville. The attached article from the StarTribune describes how Gander Mountain is remodeling a number of their existing stores such as the Lakeville store and constructing new stores to include the Gander Mtn. Academy concept. In addition to remodeling the entire store, Gander Mtn. will be developing a state -of- the -art firearms training facility within the Lakeville store. The attached press release on the recently opened Gander Mtn. Academy in their Lake Mary, Florida location describes various aspects of this new type of training facility. The estimated cost of the remodeling project of the Lakeville store is $1.7 million and is expected to be completed by mid -June. The Lakeville store is the first Gander Mtn. store in Minnesota to incorporate the Gander Mtn. Academy concept. Representatives of Gander Mtn. have met with and will be working with the Lakeville Police Department regarding training opportunities for Lakeville Police Officers in this new facility. 2010 Census Figures The US Census Bureau released 2010 Census figures this week. Attached is Table 1: The Most Populous Counties and Incorporated Places in 2010 in Minnesota. In addition to the information included in the LakevillePatch article, the following are several additional facts: With a population of 55,954, Lakeville is now the 16 largest City in the State compared to the 20 largest in 2000. Of the 20 largest cities, only Woodbury had a larger percentage increase (33.4 %) in population over the last 10 years compared to Lakeville (29.7 %) Several of the larger suburban cities are actually losing population. Bloomington's population went down 2,279 and Minnetonka's went down 1,567. There will certainly be more analysis and information coming out on the 2010 Census in the coming weeks and months. Spotlight on Business Ace Hardware and Paint will be spotlighted at the March 21 City Council meeting and EDC member Jim Emond will be making the presentation. A copy of the Council memo on this business is attached. Thanks to the numerous EDC members that volunteered to present this business. There will certainly be more opportunities in the coming months. Foreclosure Update Attached is a copy of the February Foreclosure Update from the Dakota County CDA. There were 27 Sheriff Sales in Lakeville during the month of February compared to 21 Sheriff Sales in the month of January. There were a total of 317 Sheriff's Sales in Lakeville in 2010. This compares to the 257 Sheriff's Sales in 2009. Table 1. The Most Populous Counties and Incorporated Places in 2010 in Minnesota: 2000 and 2010 (For information on confidentiality protection, nonsamplinq error, and definitions, see http: / /www.census.00v /prod /cen2010 /1)194- 171.Ddf) Population rank Geographic area Pop ulation Change, 2000 to 2010 2010 2000 2000' 2010 Number Percent Minnesota .......................... ............................... 4 919 479 5 303 925 384 446 7.8 COUNTY 1 1 Hennepin County ................. ............................... 1 116 200 1 152 425 36 225 3.2 2 2 Ramsey County ................... ............................... 511 035 508 640 -2395 -0.5 3 3 Dakota County .................... ............................... 355 904 398 552 42 648 12.0 4 4 Anoka County ..................... ............................... 298 084 330 844 32 760 11.0 5 5 Washington County .............. ............................... 201 130 238136 37 006 18.4 6 6 St. Louis County .................. ............................... 200 528 200 226 - 302 -0.2 7 7 Stearns County .................... ............................... 133 166 150 642 17 476 13.1 8 8 Olmsted County ................... ............................... 124 277 144 248 19 971 16.1 9 10 Scott County ....................... ............................... 89 498 129 928 40 430 45.2 10 9 Wright County ..................... ............................... 89 986 124 700 34 714 38.6 11 11 Carver County ..................... ............................... 70 205 91 042 20 837 29.7 12 12 Sherburne County ................ ............................... 64 417 88 499 24 082 37.4 13 14 Rice County ........................ ............................... 56 665 64 142 7 477 13.2 14 15 Blue Earth County ................ ............................... 55 941 64 013 8 072 14.4 15 16 Crow Wing County ............... ............................... 55 099 62 500 7 401 13.4 16 17 Clay County ........................ ............................... 51 229 58 999 7 770 15.2 17 13 Otter Tail County .................. ............................... 57 159 57 303 144 0.3 18 22 Chisago County ................... ............................... 41 101 53 887 12 786 31.1 19 18 Winona County .................... ............................... 49 985 51 461 1 476 3.0 20 19 Goodhue County .................. ............................... 44 127 46 183 2056 4.7 INCORPORATED PLACE 1 1 Minneapolis city ................... ............................... 382 618 382 578 - 40 - 2 2 St. Paul city ........................ ............................... 287 151 285 068 -2083 -0.7 3 4 Rochester city ..................... ............................... 85 806 106 769 20 963 24.4 4 3 Duluth city .......................... ............................... 86 918 86 265 - 653 -0.8 5 5 Bloomington city .................. ............................... 85 172 82 893 -2279 -2.7 6 6 Brooklyn Park city ................ ............................... 67 388 75 781 8 393 12.5 7 7 Plymouth city ..................... ............................... 65 894 70 576 4 682 7.1 8 11 St. Cloud city ...................... ............................... 59 107 65 842 6 735 11.4 9 8 Eagan city .......................... ............................... 63 557 64 206 649 1.0 10 16 Woodbury city ..................... ............................... 46 463 61 961 15 498 33.4 11 14 Maple Grove city .................. ............................... 50 365 61 567 11 202 22.2 12 9 Coon Rapids city .................. ............................... 61 607 61 476 - 131 -0.2 13 12 Eden Prairie city .................. ............................... 54 901 60 797 5 896 10.7 14 10 Burnsville city ...................... ............................... 60 220 60 306 86 0.1 15 18 Blaine city ........................... ............................... 44 942 57 186 12 244 27.2 16 20 Lakeville city ...................... ............................... 43 128 55 954 12 826 29.7 17 13 Minnetonka city ................... ............................... 51 301 49 734 -1 567 -3.1 18 17 Apple Valley city .................. ............................... 45 527 49 084 3 557 7.8 19 15 Edina city ........................... ............................... 47 425 47 941 516 1.1 20 19 St. Louis Park city ................ ............................... 44 126 45 250 1 124 2.5 - Represents zero or rounds to 0.0. ' Census 2000 counts are as published in Census 2000 reports and thus do not include any changes published subsequently due to boundary changes or to the Count Question Resolution program. Source: U.S. Census Bureau, Census 2000 Redistricting Data (Public Law 94 -171) Summary File, Table PL1, and 2010 Census Redistricting Data (Public Law 94 -171) Summary File, Table P1. • March 21, 2011 Item No. Spotlight on Business Ace Hardware & Paint Overview The Spotlight on Business program is designed to recognize new and existing commercial and industrial businesses in the Lakeville community. Upcoming Spotlights this year will be featuring a variety of businesses located in Downtown Lakeville. The program is also designed to emphasize, for residents, the important tax and employment benefits that business and industry provide to the community. Ace Hardware & Paint will be featured at the March 21 City Council meeting. Economic Development Commissioner Jim Emond Sr. will present the information on Ace Hardware & Paint and owner, Dean Simon will be present to accept the award. Ace Hardware & Paint is a hardware supply and service store with two locations in Lakeville. Their uptown store is located on Juniper Path just off of Kenwood Trail, and their Downtown store is located in Downtown Lakeville adjacent to Market Plaza. In Lakeville since 1994, Mr. Simon added a new location in 2006 with the Uptown store and recently built a new store to replace the old Ace Hardware building in Downtown just over a year ago. It should also be noted that both locations have been awarded a Platinum level by Ace Corporate for the quality experience these two locations represent. As they gear up for spring, both locations offer Benjamin Moore paint, lawn & garden equipment, and grills including a large selection of Weber grill products. With a knowledgeable and helpful staff, Ace Hardware & Paint offers quality and convenient service to both Lakeville residents and businesses including several partnerships within the Airlake Industrial Park. Ace Hardware & Paint provides a substantial job and tax benefit to the community. The Dakota County Assessor has assigned an estimated market value of nearly $2.5 million to the both properties. Based on current tax capacity rates, this market value will result in an estimated contribution of over $80,000 in local property taxes going to support the City, Dakota County, and Independent School District 194 in 2011. In addition to the tax base, Ace Hardware & Paint currently employs nearly 30 people in Lakeville and approximately 120 at all 5 stores Mr. Simon operates. 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To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: March 9, 2011 Re: Foreclosure Update Foreclosure Counseling Events On Tuesday, February 22, CDA staff held free Walk -in Foreclosure Counseling for Homeowners at the Apple Valley Municipal Center. Fifteen households attended the event, where they were able to ask questions and get advice from trained Homeownership Specialists. The CDA is offering another evening of free Walk -in Foreclosure Counseling for Homeowners on Tuesday, March 29 from 3:30 — 6:30 p.m. The event will be held at the CDA's office building, which is located at 1228 Town Centre Drive in Eagan. Homeownership Specialists will be available to speak to homeowners one -on -one. The event will provide information on what happens during the foreclosure process, homeowners' rights, and solutions for long -term housing needs. If people are unable to attend the event, the CDA encourages them to call the foreclosure intake line at 651- 675 -4555. If you'd like more information about the event, please call Shannon Kehoe at 651- 675 -4472. 2010 Foreclosure Counseling Report Released The Minnesota Home Ownership Center (HOC) recently released the 2010 Foreclosure Counseling Report. More than 12,000 homeowners statewide sought assistance from the HOC's network of foreclosure counselors, and more than half of the homeowners were able to avoid foreclosure. The report also provides information on the demographic and financial circumstances of homeowners who sought assistance. More information including the full report can be viewed at the HOC's blog at http: / /hocmn.blogsi2ot.com /201 1/02/ foreclosure - prevention- counseling- works.html Please note: After verifying January Sheriff Sale municipality addresses, there is a slight change in city sale numbers than what was reflected in last month's a -news. CDA Dakota County Community Development Agency 906060*0640066066690** Dakota County Stats — February 2011 • # of Sheriff Sales in February — 166 (compared to 169 in February 2010) • Total Sheriff Sales for 2011 — 316 (compared to 364 Jan.- February 2010 • # of Notices of Pendency Filed in February - 256 • Total Notices of Pendency Filed in 2011 — 490 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. 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: • At the beginning of February, Chase bank announced plans to open a Chase Homeownership Center in Minnesota. Location wasn't immediately known. • Nationally, fewer homes entered the foreclosure process in January than in any other month in more than three years, which likely indicates that lenders are taking longer to start action against delinquent homeowners. • Minnesota foreclosures rose by I I percent in 2010 compared to 2009. Nearly 26,000 went through a foreclosure sale statewide. 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Page 1 of 2 Underwater? Home lender Chase offers help The bank is expanding its counseling centers to help prevent foreclosures. By DAN BROWNINGI, Star Tribune Last update: February 2, 2011 - 7:54 PM Chase said Monday that it will open an office in Minnesota to help counsel homeowners on ways to avoid foreclosure. It's one of 25 Chase Homeownership Centers the bank plans to open in 19 states this year, targeting "the hardest -hit communities" in the wake of the foreclosure crisis. These counseling centers provide struggling homeowners with face -to -face advice and resources to help them stay in their homes, the bank says. "We want to reach as many homeowners as possible and try to help," said David Lowman, CEO of Chase Home Lending. "We educate borrowers on their options and help structure a solution that's right for them. Our new centers will dramatically expand the reach of this program and we hope help keep thousands more homeowners in their homes." Nearly 72,000 Minnesota households received "pre- foreclosure notices" last year, up 8 percent over the 66,570 who got them in 2009, according to the Minnesota Home Ownership Center. Chase, the consumer and commercial banking business of J.P. Morgan Chase & Co., has 51 homeownership centers now. It plans to open centers for the first time in a dozen states, including Minnesota and Wisconsin, and will add centers in seven others. Normally, these counseling centers operate in Chase banks. But Chase has no branch locations in the Twin Cities, so it's looking for other options, said spokeswoman Christine Holevas. The centers are open six days a week. Chase expects to have them operating in 27 states and the District of Columbia this year, and plans nearly three dozen events this year in 25 other cities to expand the reach of the program. "It's in everyone's interests, wherever possible, to find ways to keep people in their homes," said Steve Stein, a senior vice president at Chase who oversees the bank's foreclosure prevention efforts. Print Powered . Dynamics http://www.startiibune.com/templates/fdcp?1296742768929 2/3/2011 Format Dynamics:: CleanPrint :: http: / /www.startribune.com /business /115150974.html ?e... Page 2 of 2 � M-7MMI =#i i Wells Fargo offers similar face -to -face counseling services at 27 Home Preservation Center offices in Arizona, California, Florida, Georgia, Nevada and Ohio, said spokeswoman Peggy Gunn. These centers serve Wells Fargo Home Mortgage and Wachovia Pick -a- Payment customers facing financial hardships. A spokesperson for U.S. Bank said it does not have dedicated mortgage -help centers but has a team that attends foreclosure prevention events to work with customers. Dan Browning • 612- 673 -4493 Shortcuts To Links In Article 1. http: / /ezurl.co /194fl Print Po were d http://www.startribune.com/templates/fdcp?1296742768929 2/3/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /115696549.html Page 1 of 3 Mortgage default warnings slow in January as foreclosure process sees delays Associated Press Last update: February 10. 2011 - 2:41 AM LOS ANGELES - Fewer U.S. homes entered the foreclosure process in January than in any month in more than three years, the latest sign lenders are taking longer to move against homeowners who have fallen behind on mortgage payments. The number of homes that received an initial default notice fell 1 percent last month from December and tumbled 27 percent from January last year, foreclosure listing firm RealtyTrac Inc. said Thursday. Scheduled foreclosure auctions also fell to the lowest level in two years, the firm said. The delays stem partly from foreclosure paperwork problems that came to light last fall, leading many lenders to revisit thousands of foreclosure cases, especially in states such as Florida that require foreclosures to be approved by a judge. Some lenders that put foreclosure actions on hold temporarily last year have since resumed, but at a more measured pace, causing a decline in the foreclosure- related notices sent to households last month. Banks also have been letting borrowers who have missed payments stay in their homes longer so they can delay adding to their backlog of bad loans. "We are still seeing the lingering after - effects of the documentation issues that plagued lenders through the last quarter of 2010," said Rick Sharga, a senior vice president at R ealtyTrac. "In some cases. courts are being more demanding and more particular about what they'll even allow to go into foreclosure." In Florida, the number of homes receiving a foreclosure - related warning last month dropped nearly 16 percent from December and about 54 percent from the same month last year. Even with the sharp decline, Florida still had the second - highest number of homes in some stage of foreclosure, RealtyTrac said. While lenders are taking longer to move homes into the initial stage of the foreclosure process, they stepped up home repossessions in January. Print Powered http: / /www.startribune.com/templates /fdcp? 1297349187778 2/10/2011 Format Dynamics:: CleanPrint :: http:// www. startribune .com/business /115696549.html �IM [_V;TTt =-s i i i Page 2 of 3 Banks took back 78,133 properties last month, an increase of 12 percent from December, RealtyTrac said. The January total was down 11 percent from a year earlier, however. Homeowners in states where judges play a role in the foreclosure process were less likely to see their homes repossessed last month. In those states, repossessions declined 7 percent from December and 16 percent from a year earlier. Elsewhere, repossessions surged 12 percent between December and January, although they were down 9 percent versus the same month last year. Banks took back more than 1 million homes last year. Despite the slowdown in the foreclosure process, lenders are still poised to repossess more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages. And many of the factors that have contributed to the foreclosure crisis are also likely to continue driving foreclosures, including high unemployment, a weak housing market, flat -to- falling home values and tighter lending standards making it tougher for buyers to qualify for financing. In all, some 261,333 properties received a foreclosure- related notice in January, up 1 percent from December and down 17 percent from a year earlier. That translates to one in every 497 U.S. households. The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure. At a state level, Nevada registered the highest foreclosure rate in the nation last month, with one in every 93 households receiving a foreclosure notice. That's more than five times the national average. Arizona posted the second - highest foreclosure rate, thanks in part to a 54 percent monthly spike in home repossessions. While California ranked third, with one in every 200 households receiving a foreclosure notice. Declines in foreclosure activity in states like Florida helped boost Idaho to the No. 4 spot, followed by Utah. Print Powered By . http: / /www.startribune.com /templates /fdcp ?1297349187778 2/10/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /115696549.html Page 3 of 3 � mlt I-MITI =-1 ill Rounding out the top 10 states with the highest foreclosure rate in January were: Michigan, Georgia, Illinois, Florida and Colorado. Print Po wer ed B y http://www.startribune.com/templates/fdcp?1297349187778 2/10/2011 Format Dynamics:: C1eanPrint :: http : / /www.startribune.com/business /I 15807964.html �ITMV M �m I rwx Page 1 of 3 26,000 Minnesotans lost their homes in 2010 Foreclosures rose 11 percent in 2010 as more than 2 6, 000 Minnesotans lost their homes. By JIM BUCHTAI, Star Tribune Last update: February 10, 2011 - 9:18 PM Officially, the recession is over. Manufacturers are building again, consumers are occasionally spending and the stock markets are reaching highs not seen in more than two years. But the foreclosure crisis is far from over. During 2010 almost 26,000 Minnesota homeowners packed up their houses, gave their keys back to the bank and watched their houses be sold at a sheriff s sale. It was an 11 percent increase over the previous year, the second - highest number on record and four times what it was in 2005, according to data compiled by HousingLink for the Minnesota Home Ownership Center. "Staggering," is how Julie Gugin, executive director of the Minnesota Home Ownership Center, described the numbers. Also on Thursday, RealtyTrac said that foreclosure nationwide rose 1 percent during January. Filings in Minnesota were down 8.5 percent compared with last year, mostly because of delays caused by a slowdown in the way foreclosures are processed, RealtyTrac said. Still the Home Ownership Center report, which was based on sheriff sale data, offers a somber warning for the broader housing market, which despite a dismal 2010 had appeared to stabilize in recent weeks. Foreclosures have a devastating effect on the overall housing market, pulling prices down and flooding the market with hard -to -sell inventory. The foreclosure increase is also a sign that improvements in the broader economy aren't trickling down to many individuals. "While some economic indicators are pointing in a positive direction, many people and neighborhoods are still deeply mired in the recession and aren't seeing a turnaround," said Steve Cramer, executive director for Project for Pride in Living, a Twin Cities -based affordable housing nonprofit. Cramer said that he sees the fallout from foreclosures on a day -to -day basis in MANU 11111, http://www.startribune.com/templates/fdcp?1297704974460 2/14/2011 Format Dynamics:: C1eanPrint :: http:// www. startribune .com/business /115807964.htm1 Page 2 of 3 neighborhoods that had seemed on the upswing prior to the housing crisis but are now giving back some of the gains. Though there are certain neighborhoods in the Twin Cities that have been particularly hard -hit, Cramer said that this is an issue that has implications for the health of the entire state. Aside from causing a drag on home values, foreclosures cause declines in property tax revenue, they cause trouble for schools and they make it difficult for families to function in a healthy way. "Our region is really one economy, and the weakest areas diminish the strongest and impact the overall quality of life here," he said. In the metro area, foreclosures increased 9 percent from 2009 to 2010; in greater Minnesota there was a 16 percent increase. The highest foreclosures rates, were in so- called "collar" communities surrounding the metro area. During the building boom, "drive - until- you - qualify" home buyers traded a long commute for the opportunity to own a home. Many of those buyers were first - timers who were already living on tight budgets and couldn't keep up after losing a job. They often put little money down, giving them no equity, as home prices sunk. The worst was Sherburne County, where the foreclosure rate is almost 3 percent. Many foreclosures during the first couple of years of the crisis -- there were more than 26,000 in 2008 -- were the result of mortgage and other kinds of fraud. That's not necessarily the case anymore. Experts widely agree that the latest wave of foreclosures is being driven by unemployment and underemployment, meaning workers have had their hours cut and they can't find other work to make up for the lost income. "Until we see protracted periods of job creation, we will see elevated numbers of foreclosures," said Ed Nelson, spokesman for the Home Ownership Center. In outstate Minnesota, the problem is particularly acute in smaller communities that don't have diverse economies that are able to rebound after a business closes. Crystal Pastien lives in one of those places: Eden Valley, a town of about 800 people that's northwest of St. Cloud with only a few businesses, including one that relies on temp workers when there's business to support it. NUM = http://www.startribune.com/templates/fdcp?1297704974460 2/14/2011 Format Dynamics:: C1eanPrint :: http:// www. startribune .com/business /115807964.html Page 3 of 3 Pastien said that she knows of at least five friends who have lost their house to foreclosure, and in just the past couple of weeks she helped move a friend and her two young daughters to a rental house after the one she owed $140,000 on sold at a sheriffs sale for just $36,000 after a modification plan didn't get approved. "It was bad and hard for me to see it," she said of the experience. "But they had false hope that something was going to happen, but it wasn't." Pastien could have been in the same boat. After losing a job and refinancing out of an adjustable -rate mortgage, she was on the "brink" of foreclosure for a year and a half before persuading her lender to recast her mortgage. After adding $15,000 in fees to the mortgage, she now owes $102,000 on a house that's worth $62,000. "At least I saved my house," she said. Jim Buchta • 612- 673 -7376 Shortcuts To Links In Article 1. http: / /ezurl.co /214cl PrintPoweredBy ' http://www.startiibune.com/templates/fdcp?1297704974460 2/14/2011 Census: Lakeville's Population up 30 Percent, Minority Populations More Than Doubled -... Page 1 of 2 Lxl Lakeville 37° Get the Patch Newsletter THE NEIGHBORHOOD FILES ll Census: Lakeville's Population up 30 Percent, Minority Populations More Than Doubled Lakeville is home to 12,826 more people than in 2000, U S. Census shows. By Scott Fagerstrom and Derrick Williams March 16 2011 Lakeville's population grew nearly 30 percent in the past to years, according to new figures released just hours ago by the Census Bureau (http: / /census.gov /). The official 2010 population of Lakeville is 55,954, UP from 43,128 in 2000. The 30 percent jump isn't news -most Lakeville residents knew people were flocking to the town since the turn of the millennium. What people may not have realized is Lakeville's population of minorities is expanding even more rapidly, more than doubling in most cases. rt NI ♦ • • 0 HL" In 2000, 94 percent of Lakeville's population was white. In 2010, that number dropped to 89.3 percent with the African American, Asian and Hispanic /Latino populations more than doubling in Lakeville since 2000. According to the Census, 1,407 residents who claim to be African American only call Lakeville home today, which is up 154 percent from the 553 African Americans in Lakeville in 2000. The same story true for Lakeville's Asian population, which rose 162 percent, up to 2,276 today compared to 868 in 2000; and the city's Hispanic /Latino population, which is up 134 percent, up to 1,955 in 2010 as compared to 835 in 2000. By comparison, Lakeville's white population grew 23 percent, up to 49,970 today from 40,654 in 2000. Meanwhile, Dakota County grew by 12 percent in the past decade. Scott by comparison grew by 45 percent. The county is now home to 398,552 people, up from 355,904 in 2000. But while the total population only grew 12 percent, its Hispanic /Latino population jumped 129 percent, moving from just 10,459 in 2000 to 23,966 today. The story is similar for Dakota County's Asian population which is up nearly 7o percent, jumping to 17,451 today compared to 10,285 in 2000; as well as the county's African American population which increased by 43 percent, up to 11,574 in 2010 compared to 8,o91 in 2000. By comparison, the county's white population only grew 4.4 percent, up to 339,499 today from 325,166 in 2000. In December, the Census Bureau released the data from its American Community Survey (http: / /Iakeville.patch.com /articles /census - survey - suggests- lakeville -is- changing -as- much -as- its - growing) (ACS), which estimated Lakeville's population at 53,597• The ACS data is gathered by the Census Bureau and produces annual population, demographic and housing estimates. But the data isn't as specific as the Census Bureau's Population Estimates Program, which produces the official estimates that are used to determine congressional representation. That information is gathered every ten years and that is the data that was released today. Lakeville Patch will have much, much more over the next days and weeks about the 2010 Census data and what it means to Lakeville and Dakota County. 2010 Census Lakeville Dakota County Minnesota Total: 55,954 39 5,3 Population ofone race: 54,534 387,078 5,178,780 white alone 49,97 339,499 4,5 Black or African American alone 1 ,4 0 7 X 8 ,7 0 9 2 74,4 12 American Indian and Alaska Native alone 200 1,647 60,916 Asian alone 2 , 2 7 6 1 7,45 1 21 4, 2 34 Native Hawaiian and Other Pacific Islander alone 21 216 2,156 Some Other Race alone 660 9,55 103,000 http: / /lakeville.patch. com /articles/ census - lakevilles- population -up -3 0- percent- minority -p... 03/17/2011 Census: Lakeville's Population up 30 Percent, Minority Populations More Than Doubled -... Page 2 of 2 2010 Census Two or More Races: i Hispanic or latino (cultural designation, may he any race) Age 18 or older (eligible to vote) Lakeville 1, 420 1 ,955 3 Dakota County 11 ,474 2 3,99 6 2 93,49 2 Minnesota 12 5. 1 45 2 5 0 , 2 5 8 4,019,862 � 2000 Census Lakeville Dakota County Minnesota Total: 43,128 355,904 4,919,479 Population ofone race: 42,578 349,660 4,836,737 wbitealone 40,654 325466 4,400,282 Black or African American alone 553 8,091 171,731 American Indian and Alaska Native alone 165 1 >347 54,9 Asian alone 868 10,285 141,968 Native Hawaiian and Other Pacific Islander alone 10 165 1, 979 Some other race alone i 328 4,606 65,810 Population of two or more races: 55 6 , 2 44 8 Hispanic or Latino (cultural designation, may be any race) 8 35 10 ,459 1 43,38 2 Age 18 or older (eligible to vote) 2 7,5 6 8 2 5 2 , 0 4 2 3, What do you think of the Census data? Tell us in the comments. Interested in a follow -up to this article? SEE NEXT IN THE NEIGHBORHOOD FILES Great Escape: Let's Dish! http: / /lakeville.patch.com /articles/ census - lakevilles- population -up -3 0- percent - minority -p... 03/17/2011 Format Dynamics:: CleanPrint :: http: / /www.startribune.com /premium /117824448.html ?... Page 1 of 4 P�1�;TM M�s� i i i Gander Mountain: Taking aim at the competition Roberto Gonzalez, Star Tribune Seven miles west of Gander Mountain's 14- year -old Maple Grove store, along Interstate 94, sits a newer, brighter, bigger Cabela's, the Mecca of outdoor enthusiasts, a destination where customers can browse, dine, stay overnight and be entertained by an aquarium full of fish or exhibits of stuffed wild game. The Maple Grove Gander Mountain, located in a strip mall between a bookstore and a craft shop, feels pedestrian by comparison. But that is changing. The St. Paul -based private company, with 116 stores in 23 states, has embarked on an aggressive remodeling program. New stores will have a rustic lodge feel, along with a better product mix, and a tech center in the middle of the store for high end scopes, GPS systems and other outdoor - related technology. "It's a complete face - lift," said CEO David Pratt, the half owner of Gander Mountain whose financial portfolio also includes minority ownership of the St. Louis Cardinals baseball team and the 200,000 -acre Three Forks Ranch in the Sierra Madre Mountains. "We're going from a warehouse look to that of a specialty retailer." Some select stores will go a step further. Gander Mountain is adding a first -of -its -kind retail shooting academy, with a mix of classroom learning and hands -on firing for gun enthusiasts and owners. The store in Lakeville will be the first in Minnesota to be reconfigured with the shooting academy in June. Gander will open a new store in La Crosse, Wis., with an academy in April. "We are going to expand dramatically over the next few years," said the casually dressed Pratt, sitting in a conference room in the downtown St. Paul headquarters that is referred to by employees as "base camp." "We're going to find ways to do better." The retailer doesn't have much of a choice in a retail segment dominated by big names with big drawing power. Cabela's stores are often top tourist destinations in a state, islands of activity set off from major cities where they draw from a hundred miles around. It just reported its seventh straight profitable quarter with a record fourth quarter in which same -store sales were up 7.3 percent, more than double some analysts' estimates. Bass Pro Shops are also big draws, with the Advertisement Print Powered By http://www.startribune.com/templates/fdcp?1300104450770 03/14/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune.com /premium /117824448.html ?... Page 2 of 4 s I chain's 56 stores visited by more than 109 million shoppers a year, according to the company. And Dick's Sporting Goods not only weathered the recession, but has come out stronger, its stock trading at all -time highs. The rest of the retail industry has seen national chains wither during the recession, often leaving just one dominant player: Best Buy defeated Circuit City, Bed Bath & Beyond outlasted Linens 'n Things, and now, apparently, Barnes & Noble victorious over Borders, which filed for bankruptcy this year and is shutting many of its stores. But outdoor enthusiasts are a different breed. "Whether it's a good economy or a bad economy, if you are a deer hunter, you are g oing to partake in that activity," said analyst Reed Anderson of D.A. Davidson & Co., who follows the sector. Eric Jacobsen, Gander Mountain's general counsel and executive vice president, agreed. "People may stop taking expensive vacations, but they will still do things with their families Hunting, fishing and camping is really part of our culture." The industry is also very fragmented, with no one garnering more than 10 percent of the market, said Love Goel, a retail consultant and CEO of Minnetonka -based private equity firm GVG. "Most of the sales are done by mom - and -pop operations and bait shops." Growing in the recession Indeed, Gander has had its ups and downs trying to snake a name for itself between those hometown stores and the tourist draws of Cabela's. Founded as a catalog operation in 1960 in Wisconsin, it grew to 17 stores before filing for bankruptcy in 1996. It was bought by Bloomington -based Holiday Stationstores, owned by the Erickson family, which had 10 retail sporting goods stores at the time. It went private last year after less than six years as a public company, with Pratt and the Ericksons, through other businesses, buying out public shareholders. At the time, it had lost money for five straight years, struggling with high inventories and money- losing prospects with boats and all- terrain vehicles. That has been righted, executives say. Gander Mountain claims it has done better in the recession. But Pratt maintains that the company's financial position has improved considerably since he took over in 2008. Advertisement •s -• http: / /www.startribune.com /templates /fdcp? 1300104450770 03/14/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune.com /premium /117824448.html ?... Page 3 of 4 �1 MIt IT 1 �'=_ �= Revenue topped $1 billion last year, he said, without offering specifics. In its last full -year disclosure, the company had sales of $1.064 billion in the year ended Jan. 31, 2009. (By c omparison, Cabela's revenue for 2010 was $2.6 billion. Sales for Dick's Sporting Goods in its most recent fiscal year exceeded $4.8 billion.) "We have improved the financial situation considerably," said the 60 -ish Pratt. (The company would not say exactly how old he is.) "We've paid down a significant amount of debt. We are far more stable." Five Gander Mountain stores have been remodeled at an undisclosed six - figure cost per store. Six to eight more will be upgraded this year, each of which will get the new Gander Mountain Academy. "The remodeled ones are already doing much better," said Pratt, a former pesticide executive who spent millions helping clean up the Little Snake River, which runs through his massive property in Colorado. Pratt joined the board in 2005 and sank $50 million into the company the following year as well as donning the chairman title. He took over as interim CEO in 2008 and has been running the company since. Goel believes Gander Mountain is a stronger company under Pratt's leadership, which includes an increased online presence for the retailer, a used - firearm segment and a bigger selection of apparel and footwear. "David's not a retailer, but he's a good businessman and leader," Goel said. Women powering firearm sales Gander Mountain purports to be the largest firearms retailer in the United States, and there are no trade figures to refute that. The academies are clearly designed to improve on that strength. Firearm sales in the United States have been steadily growing in recent years from $3.7 billion in sales in 2006 to $5.2 billion in 2009, according to the National Sporting Goods Association. The first Gander academy opened near Orlando in Lake Mary, Fla., last month. It is already "performing substantially better in sales of firearms, ammunition, accessories and related shooting apparel," Jacobsen said. "There are tens of millions of people out there who really haven't had [gun] training," said Jacobsen. "They get tips handed down Advertisement Print Powered http: / /www.startribune.com /templates /fdcp? 1300104450770 03/14/2011 Format Dynamics:: CleanPrint :: http: / /www.startribune.com /premium /117824448.html ?... Page 4 of 4 by family members. We thought why not institutionalize this ?" In addition to classroom training students receive actual shooting instruction with weapons that fire laser beams in a virtual shooting range and with weapons firing live ammunition in a more traditional range. Many of the instructors are former members of the U.S. military. The Gander Mountain Academy appears designed to capitalize on two relatively recent trends in the firearms industry: The right -to- bear -arms segment has been buying firearms amid concern of tougher gun control laws, and more women are buying handguns for safety reasons. The company has pushed the female angle for a while, launching a line of pink guns a few years back. Pratt said half of handgun sales go to women. "Without training you are in more danger of hurting yourself than you were before you bought it. This helps solve that problem," Pratt said. "This is all about safety. Firearms are not going away." In a promotional video for the academy, a Gander clerk says, "Train today to be prepared for tomorrow." One of the features of the virtual setup, or " V-range" as Gander Mountain calls it, is a reality range with surround screen depicting various dangerous scenarios; the student must decide whether to shoot at a potential villain. Pratt and Jacobsen said that feature could benefit public safety officers who encounter similar shoot -or -don't shoot situations as part of their job. Pratt expects the academy to be a profit center on its own as well as a draw for potential customers in the rest of the store. "This is game - changing for Gander Mountain," he said. David Phelps • 612- 673 -7269 Shortcuts To Links In Article Advertisement 1' Powered By ' http://www.startribune.com/templates/fdcp?1300104450770 03/14/2011 Q 0 N O L ca J Y W w U) W Z U) n m W Z m , cr 0 U H O Q 0 V G� T 4.� 4� 4� V 9 a) u "T:� 0 u am AMEERJ o r- o o u-o � o o u u c. v . O o C's - O O u O u C o� 'b t4�4 cl O N 0 7 4 ` ct :� .0 �• .� O Q 0 42 I o u z o o.° b u 1 n Pa bn a -ci N ° ti •C .0 cn . r. ' . Q e� 4. bn ,.+ a+ +� U ctl o w x P v, .a � x O w �U 4 u n, � 01J s ir LA Q Fn O a+v, ti V C� w 'd w�bio ao�a� E ti .C° 1. eon 1 y 1 - o o Qj �� pe T a� H w boa 0 �W p a 3 a 0 tl U u w bllc u• � - o �� u-o � o u u 3 3 cz o o� cl � O5u ct o �U t �vU 0 3 d �� E 3 8, w a 0 d b w a V LL i� O 4-J U O U 0 3-I 0 Cd G� O c� Q 00 M 0 cn 0 { O C� Q CS3 O u 4 a U F ^" a� 0 h� �1U � 3 u O Wx Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /117211788.html Page 1 of 2 Manufacturing recovery quickens A worker inspected a truck on the Volvo assembly line in Dublin, Va. A measure of manufacturing activity last month hit its highest level since May 2004. An uncertain outlook for oil prices appears to be the only cloud on the immediate horizon. By SUSAN FEYDER Star Tribune Last update: March 1, 2011 - 9:33 PM Manufacturers picked up the pace of their rebound in February, boosting production and hiring workers at a faster clip despite the headwinds of higher raw material costs, a ccording to two barometers of business activity. The Institute of Supply Management (ISM) reported Tuesday that its monthly index of manufacturing activity hit its highest level since May 2004. The index, based on interviews with hundreds of businesses nationwide, was at 61.4 in February, up from 60.8 in January. A reading over 50 indicates economic growth. A similar study of a nine -state Mid - American region including Minnesota saw an even sharper increase in the rate of growth. That study, overseen by Prof. Ernie Goss at Creighton University, saw its index hit 63.2 in February compared with 58.9 the previous month. It was the highest level for the index since May 2010. The reports are the latest indications of an economy on the mend from the recession. Last week, the government reported that the economy grew at an annual rate of 2.8 percent in the fourth quarter, the sixth straight quarter of expansion. Goss said economic strength in the agricultural sector and a weak U.S. dollar that Advertisement Print Powered N http://www.startribune.com/templates/fdcp?1299073789050 03/02/2011 Steve Helber, Associated Press Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /I 17211788.html ��_ �W M !H N � M � Page 2 of 2 sparked exports were major reasons for the robust activity in February. Firms in nonurban areas reported more hiring than those in urban areas, he said. Only about 11 percent of the firms surveyed laid off workers in February vs. nearly 20 percent at the end of 2010. "Oil prices are the economic wild card," Goss said in an interview. Concern over the rise in oil prices resulting from turmoil in the Middle East was the likely reason the Creighton study's confidence index slipped from 74.8 in January to 71.0 in February, he said. Oil prices already had been climbing before going on a roller- coaster ride sparked by unrest in the Middle East. The same has been true for prices of other commodities. The prices -paid index in the Creighton study shot up from 84.2 in January to 89 .2 in February. The price component in the ISM study in February was the highest since July 2008, with copper, steel, aluminum and corn registering the largest one -month gains. Two - thirds of those surveyed reported paying higher prices for raw materials in February. Troy Duncan, manufacturing industry leader at Grant Thornton's Minneapolis office, said that for now, he's not worried about rising material costs derailing the economic recovery. "Manufacturers have been able to pass along their price increases to their customers, where there's a large amount of pent -up demand," Duncan said. That view was reflected in the ISM study, which found an increased rate of growth in production, new orders and backlog in February compared with January. The weak dollar sparked a higher rate of growth in exports and didn't deter imports, where activity remained basically the same in February compared with the previous month. Susan Feyder • 612- 673 -1723 Shortcuts To Links In Article 1. http: / /ezuri.co /4cel Advertisement Pri P ower ed B y Dy namics — t http: / /www.startribune.com /templates /fdcp? 1299073789050 03/02/2011 THE DAKOTAH. WEST ST. PAUL Community Development Block Grant (CDBG) funding helped redevelop a block of run -down buildings on S. Robes Street. The area is now a 59 -unit semor housing development called The Dakotah. There is also 6,600 square feet of commercial space on the ground level. Cuts in federal block grants could hit home Local officials say cuts to a federal urban development program could spell trouble. By MCM NORF= nicoJezcdleet@startnbune.com W hat do a historic bank, a senior housing development and a food shelf have in common? They have an benefitted from a nearly 30- year -old county program financed by the federal government, which is now consider- ng making drastic cuts to the fimding. During its decades of activity in Dako- ta County, the Community Development Block Grant (CDBG) program has allocat- ed millions to help cities and townships fund projects that benefit low - and mod- erate- income people and eliminate slum and blight conditions. Since 1984, when the county became a block grant recipient, local government agencies have used the money in a vari- ety of ways including revitalizing and pre serving a historic downtown and provid- ing loans for people to fix up their homes. "Basically, it's one of the few federal programs available to local governments to address housing needs;' said Tom Link, community development director for Inver Grove Heights. This week, Burnsville Mayor Elizabeth Kautz is leading a delegation of mayors from across the country to Washington D.C.; on thing on their agenda is to appeal to lawmakers to support CDBG funding. In Inver Grove Heights, some of the CDBG funds have been used by the city to acquire property in the Doffing Ave- nue neighborhood, which lies in the Mis- sissippi River floodplain. The program is important because homes in the flood- Grant continues on AA7 WWW.STARTAIBUNB.COItt/LOCAL • SBCTION AA Dakota County Community Development Agency photos EXCHANGE BANK BUILDING, FARNINGTON The Exchange Bank Building, built miB8o and listed in the National Register of His tonc Places, was rehabilitated using CDBG funds. The building has two commercial busi- nesses on the street level. Cuts m*;': Weral block grants could hit home � GRANT FRON AA1 plain can create environmen- tal and public safety issues, Link said. Any federal cuts to the CDBG program would make it difficult to continue the ac- quisition program, he said. Last week, President Obama announced abudgetplutfor fis- cal year 2012 full of cuts to fund- ing for domestic programs, in- cluding a trim of $300 million for the CDBG. There are other plans in Capitol Hill to cut fund - mgto CDBG for fiscal year 2011 by 60 percent or more. "Over the years, we've come to rely on it quite heav- ily," said Jim Hartshorn, com- munity development director for West St. Paul. "It's a good program, especially in a town like this where there is a lot re- development" In the 2010 fiscal year, the county received about $1.9 million through CDBG. Most ofthe funds are used for hous- ing rehabilitation programs. Rehab programs such as the one in West St. Paul help low - income residents get loans to improve their homes. The program in West St Paul helps give out about 16 loans per year, Hartshorn said. Without the program, home values could go down, he said. In Burnsville, CDBG fund- ing has been used for senior services and maintaining the Garage, the city's teen center, among other projects, said Ju- lie Dorshak, community ser- vices manager for the city. "It would have a signifi- cantimpact;'she said of fund- ing cuts. The Garage would prob- ably have to reduce its af- ter- school and summe pro- gramming if its CDBG fund- ing were cut by half or more, said Eric Billiet, recreation su- pervisor at the Garage. The Garage provides after - school programs such as arts and nutrition classes, as well as a tutoring program, with the help of a full-time staff person paid in part by CD- BG funds. That staff position would probably have to be cut if there were a drastic reduc- tion in funding, Billiet said. "A lot of them just didn't do their homework before they came here. They would prob- ably go back to not doing their homework," Billiet said. Since 2001, the county s allo- cation of CDBG finds has de- creased by more than 12 per- cent. In the past, the county has tried to fill the void by get- ting grant money from other sources, said Dan Rogness, di- rector of community revitaliza- tion for the county's Commu- nity Development Agency. "The problem is that if the gap is significant ... it's very difficult if not impossible to find some other source to fill that," Rogness said. The county can only hope that when the budget for the re- mainder of the 2011 fiscal year is finally decided, that its allot- ment stays the same as List year, he said If not, then there will probably be proportionate re- ductions in program fimdm& Nicole Norfleet • 612. 673 -4495 (( IT'S A GOOD PROGRAM, ESPECIALLY IN A TOWN — (WITH] A LOT OF REDEVELOPMENT. 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