HomeMy WebLinkAbout04-26-11City of Lakeville
Economic Development Commission
Regular Meeting
Agenda
Tuesday, April 26, 2011, 4:30 p.m.
City Hall, 20195 Holyoke Avenue
Lakeville, MN
1. Call meeting to order
2. Approve March 22, 2011 meeting minutes
3. Review of Request for Proposals: Business Marketing Strategy
4. Review of Planning Efforts for Developer Forum
5. Review of 2010 Census Information for Lakeville and Dakota County
6. Director's Report
7. Adjourn
Attachments:
March, 2011 Building Permit Report
March, 2011 Foreclosure Update
Cheerleader for the Twin Cities, in a suit and tie, Finance & Commerce,
March 30, 2011
Industrial outlook spurs projects, Business Journal, April 1, 2011
; ,, No. a�
City of Lakeville
Economic Development Commission
Meeting Minutes
March 22, 2011
Marion Conference Room, City Hall
Members Present: Comms. Matasosky, Brantly, Longie, Starfield, 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, Tushie.
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 4:30 p.m. in the Marion Conference
Room of City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota.
2. Approve February 22, 2011 Meeting Minutes
Motion 11.05 Comms. Emond /Schubert moved to approve the minutes of the
February 22, 2011 as presented. Motion carried unanimously.
3. Update on Marketing Plan Subcommittee
Mr. Kienberger provided 'an update to the EDC on the status of the work the
Marketing Subcommittee is doing in moving towards accomplishing the goal of
creating a marketing plan' outlined in the 2011 -2013 Strategic Plan for Economic
Development.
The group is working on formulating an RFP to hire a marketing consultant to help
the group outline and identify the components necessary for a successful marketing
strategy plan. Presentations by site selectors and some statistical data on
Lakeville's demographic composition were reviewed at the last Subcommittee
meeting to help identify priorities and outcomes to be incorporated into an RFP.
Comm. Starfield asked about the partnership potential of the Lakeville Area
Chamber of Commerce in the development of this marketing plan.
It was noted that the Chamber has been identified as a partner and will be involved
along with other partners and stakeholders as the process evolves and a consultant
is hired to help formulate the plan.
Economic Development Commission
Meeting Minutes
March 22, 2011
The EDC concluded that the Marketing Subcommittee is moving in the right direction
and should proceed with the development of an RFP to select a marketing
consultant.
4. Discussion of Economic Development Incentive Toolbox
Mr. Olson reviewed the EDC outlining the development of an economic development
incentive toolbox.
Mr. Mielke reviewed the process and implementation methods being suggested for
creating the toolbox. It was noted that there is a greater challenge in identifying
when and how the tools are used rather than which tools are available.
Chair Matasosky and Comm. Longie asked about how to' calculate a return on
investment for determining what type or amount of incentives to be used. It was
added that an approach should also be taken to distinguish Lakeville by what it can
offer and a creative implementation to incentive tools.
Mr. Mielke responded that you have to be able to look for the right tool for the right
prospect.
The EDC discussed how prospects are handled internally and how the prospect
process can be likened to sales.
Mr. Mielke added that the Community & Economic Development department
handles business prospects and shepherds them through the development process
from start to finish.
Comm. Vlasak mentioned that we need to be able to show a prospect the whole
toolbox and, help them find applicable tools from what's available.
Mr. Mielke added that the .policy decision needs to be made as to how to judge the
return on any type of incentive "investment" the City makes in a company. How is it
determined if an incentive is "worth it ".
Chair Matasosky noted part of the challenge also arises from dealing with a
wide range of people looking to come to Lakeville. Sometimes it is a large corporate
site selector who. understands the process and has one set of needs, to a small
business owner who has never moved or relocated a business before.
Comm. Brantly asked if there is a way for Lakeville to identify a specific industry that
is a good fit for the City.
Mr. Olson responded that staff works with the broker community to identify and
understand the trends in business movement and what is coming down the line.
Comm. Starfield asked if there was a way to get on more people's radar screens by
doing more constant follow -up with prospects.
2
Economic Development Commission
Meeting Minutes
March 22, 2011
Mr. Mielke stated that policy guidance is the key to how we should proceed at this
point. Any incentive offered to a business needs to be publicly defendable. What
are our goals? How do you measure the gains against what you give up? Goals
need to be set so that staff has direction to be able to talk in greater detail with
business prospects about potential incentives; i.e. if we want to incent affordable
housing, the City Council needs to make that a goal.
Mr. Olson reviewed a draft business subsidy policy that was worked on and
discussed at several meetings last year. Once a subsidy policy is formally adopted,
it will help guide the policies that can be implemented for individual tools in the City's
incentive toolbox.
Comm. Brantly asked if the number of commercial /industrial property brokers are
few enough that it is feasible to build additional relationships with them as part of an
overall strategy.
Mr. Olson responded that this is one of the things being discussed within the
Marketing Subcommittee of the EDC and will continue to be a part of this process.
Mayor Bellows mentioned the formation of a financial advisory task force that was
brought up at the end of last month's EDC meeting and noted that Comm. Longie
would be discussing this at the end of the meeting. Mayor Bellows excused himself
from the meeting at this point.
Comm. Schubert, mentioned that because each project is different, we need to be
able to react strategically.
Comm. Starfield suggested adding the work done a few years ago by the Business
Telecommunications Techriology Task Force (BTTTF) to the list of possible items to
be included in the toolbox:
Mr. Mielke suggested the complete "package" for prospects and brokers could be
compiled as a part of this process and ultimately put on the City website as that is
often first and sometimes the only stop for site selectors.
Comm. Vlasak also recommended looking at some best practices from around the
country.
Chair Matasosky concluded the discussion by stating that there are many variables
in the incentives discussion and that some of this information is currently being
analyzed by the Marketing Subcommittee. The EDC will continue to move forward
on this topic.
5. Director's Report
Mr. Olson reviewed the Director's Report.
3
Economic Development Commission
Meeting Minutes
March 22, 2011
Comm. Longie discussed a topic that came out of the Chamber of Commerce's
Public Policy group regarding the formation of a financial advisory task force. It was
mentioned that there could possibly be a liaison from the EDC on this group. A list
of names is being submitted to City Council for possible appointment to a newly
created city task force.
Mr. Mielke noted that the City Council will need to identify the mission and
membership of this group before anything can become formalized.
The EDC concluded that when the City Council identifies the mission of this group a
bit more, it can be discussed in greater detail at a future EDC meeting.
6. Adjourn
The meeting was adjourned at 6:10 p.m.
Respectfully submitted by:
Adam Kienberger, Recording Secretary
Attested to:
R. T. Brantly, Secretary
ll
4
Azal City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission
From: Adam Kienberger, Economic Development Specialist
Copy: Steven Mielke, City Administrator
David L. Olson, Community & Economic Development Director
Date: April 26, 2011
Subject: Marketing Plan Request for Proposals Draft
On Thursday, April 7 the EDC's Marketing Subcommittee (Commissioners
Matasosky, Brantly, Longie, and Lakeville resident Clinton Kennedy) met to discuss
and work on the Request for Proposals (RFP) document that will be used to solicit
the services of a marketing firm to help craft a " "Business Marketing Strategy ".
A draft of this RFP is attached for the EDC to review and comment on.
The Subcommittee also discussed conducting a FAB exercise (Features, Advantages,
Benefits) concurrent with the RFP selection process. Commissioner Brantly provided
a summary of what a FAB exercise is and how it can be a successful process for
stimulating creative thinking. A description of the FAB process prepared by
Commissioner Brantly is also attached.
It was proposed that to do a FAB exercise, the EDC would host a three -hour focus
group to build a vision for what the City of Lakeville (with a focus on business
attraction /retention) represents. Community representatives would be invited to
attend a facilitated brain - storming session.
Pending any comments or changes by the EDC, the Subcommittee will proceed by
the finalizing the RFP and seeking City Council approval to hire a marketing
consultant to develop a business marketing strategy. The Subcommittee will
continue to meet and check in with the entire EDC at regular intervals to inform
them of their progress and seek input as needed.
Action Requested: The EDC is being asked to provide comments and /or changes
to the draft RFP for a business marketing strategy as attached, and forward it to
City Council for authorization to proceed.
DO A FAB EXERCISE
Sooner or later we must mine the knowledge and creative thinking of
our own people. This is done through a brain - storming session called a
FAB exercise in which representatives from selected segments of our
business and private communities are brought in to identify Features,
Advantages and Benefits.
As participants identify features, the others name advantages and the
leader distills them into succinct benefits.
It is synergistic. Combined ideas turn into new ideas. Whimsical
ideas turn into concrete benefits.
While it could be led by an experienced consultant, the information
gleaned from a FAB exercise cannot be brought in from the outside.
Though it would not all be unique, we would be sure of its
authenticity because it all stems from real -time, actual and confirmed
experiences of people who live and work in our city.
It would be a resource for whatever consultant is selected.
(We did this with excellent success for every new product that was introduced in my division when I
worked in marketing at 3M.)
MM! M
City of Lakeville
Request for Proposals:
Business Marketing Strategy
Contact:
Adam Kienberger
Econoin.ic Development - Specialist
City of Lakeville
20195 Holyoke Avenue,_
Lakeville, MN 55044
(952) 985 -4425
akienbergerAlakevillemn.gov
Dated: May XX, 2011
Responses Due: XX, 2011
Lakeville Business Marketing Strategy RFP
Introduction:
As a successful and progressive community, the City of Lakeville provides the
foundation for healthy neighborhoods and prosperous businesses by investing in quality
and efficient services, effective partnerships, and citizen participation. The City's
commitment to well - planned development enhances the distinctive and high quality of
life enjoyed by our residents. As the southern gateway to the Twin Cities, Lakeville
offers the advantages of being part of a metropolitan area while providing a family -
friendly small town atmosphere with outstanding recreational and cultural opportunities.
The Economic Development Commission (EDC) is a citizen advisory group that updates
a strategic plan every three years which employs long -term strategies to encourage
business development and promote economic development in Lakeville.
Lakeville has historically lacked a consistent and focused branding and marketing plan
for business attraction and retention. Past efforts have tended to be mostly reactionary as
opportunities have presented themselves and funding was available.
The number one goal from the EDC's 2011 -2013 Strategic Plan for Economic
Development is to:
"Create a marketing plan that has a clear message, is flexible, adequately
funded, creative, aggressive, and targeted that communicates Lakeville's
values, is broad and sector specific based on good information."
The City of Lakeville is seeking responses to this RFP to develop and outline an
implementation plan for a business marketing strategy to target corporate site selectors,
business decision makers, and the general business community about why Lakeville
should be a top choice for locating and growing a business.
A facilitated visioning session was held with the EDC in the fall of 2010 to help guide the
vision and ultimately served as the outline for the 2011 -2013 Strategic Plan for Economic
Development. The results of this internal analysis can be found within the Strategic Plan
document.
This session produced the following vision of the EDC:
• "Lakeville is recognized as a unique and attractive community where people of
all ages want to live, learn, work and enjoy and where businesses choose to locate
due to an attractive business climate."
Other related background information is attached:
• 2010 City Council /EDC Questionnaire Results
• 2010 Approved 2011 -2013 EDC Strategic Plan for Economic Development
• 2010 Business Survey Executive Summary
• Features Advantages Benefits (FAB) analysis — ongoing
2
Business Marketing Strategy:
The City of Lakeville has identified the following five goals and outcomes of the
Business Marketing Strategy:
Goal 1:
Recruit new businesses by targeting and engaging corporate site selectors and
other "decision makers ".
Outcome:
Lakeville's brand is recognized by corporate site selectors and business location
"decision makers ". Lakeville is a "front of mind" consideration for businesses
looking to relocate or expand. Ultimately this will lead to the attraction of new
business and jobs for Lakeville.
Goal 2:
Grow and retain existing businesses.
Outcome:
Existing businesses realize the benefits of staying and growing within Lakeville
and feel a sense of pride and loyalty to remaining in Lakeville. Businesses feel
valued and appreciated within the community.
Goal 3:
Differentiate Lakeville from other suburban communities /target markets by
promoting distinctive attributes that demonstrate value.
Outcome:
Creation of a unique and creative branding campaign that is relevant to viable and
identified targets that raise the brand awareness of Lakeville as a place to do
business.
Goal 4:
Convey a positive and relevant brand image of Lakeville both inside and outside
of the community.
Outcome:
Lakeville is recognized as a desirable place to do business.
Goal 5:
Identify local community partners and stakeholders that can share and promote a
unified message.
Outcome:
Multiple partners share a message that is consistently conveyed to both new and
existing businesses the partners come in contact with.
3
Proposal:
Scope of Service:
At a minimum the study should provide a report containing:
1. Analysis of existing marketing materials and programs including but not limited
to:
a. Print and media materials
b. Website
c. Conference and trade show attendance
d. Business retention strategies and programs
2. Suggested marketing strategies to help meet the goals outlined in the goal section
of this RFP including but not limited to:
a. Print and media materials
b. Website
c. Social media
d. Other miscellaneous promotional materials
3. A detailed implementation cost analysis of each component of the recommended
marketing strategies that can be used to identify and plan for a comprehensive
marketing budget.
a. Identify one -time and annual recurring costs
A detailed work plan identifying:
1. Tasks to be accomplished and the amount of budget hours for each task and
subtask.
a. This will be used as a work plan and managing tool for basis of invoicing.
2. Identify deliverables. ,
a. Key milestones of project
b. Level of City staff participation
c. Status meetings identified through work plan
Detailed cost estimate of the study, including professional hourly rates and
multipliers and estimated service /task hours with a "not to exceed cap ". Other
expenses related to the completion of the study will be discussed on a case -by-
case basis. Preferred pricing will identify fixed cost bids with a menu of necessary
and optional services.
All proposals are subject to the following conditions:
1. Federal Funds. This project is being funded in whole or in part with federal
Community Development Block Grant ( "CDBG ") funds through the U.S.
Department of Housing and Urban Development ( "HUD "). The Firm selected
through this RFP will enter into a contract with the City of Lakeville and must
agree to federal funding provisions as attached in Exhibit A .
in
2. Conflict of Interest. The proposer must identify any potential conflict of interest
it may have providing the services contemplated by this RFP.
Statement of Qualifications:
The following will be considered minimal contents of the proposal:
1. Goals, objectives, and project tasks to demonstrate the responder's view of the
project and exhibition of responder's knowledge of local government marketing
and branding.
2. Outline of respondent's background and experience with particular emphasis on
public sector marketing and branding.
a. Provide contact list for at least three (3) references in support of the
background and experience.
3. Knowledge of print, website, and social media advertising and promotion
4. Experience working with local governments.
5. Identify key personnel to conduct the project. No change in key personnel
assigned to the project will be permitted without approval of the City.
City Provided Supporting Documentation:
■ 2010 City Council /EDC Questionnaire Results
■ 2010 Approved 2011 -2013 EDC Strategic Plan for Economic Development
■ 2010 Business Survey Executive Summary
■ Lakeville demographic data
■ Lakeville map
■ Lakeville Industrial Parks map
■ Lakeville City website: www.lakevillemn.gov
Characteristics of Lakeville:
■ 38 square miles
■ —60% developed
■ 55,000+ residents ,
■ — 19,500 households
■ 1,000+ businesses
o Mostly small to medium sized businesses ( <100 employees)
o Growing office /industrial and home -based business sectors
■ High educational attainment of residents (44% have a bachelor's degree+)
■ Median household income $90,803
■ Median age is 33.5
■ Freeway access
Requirements and Final Product:
■ A business marketing strategy plan document
o All documents, plans, work completed under this proposal will become the
property of the City of Lakeville upon completion.
■ Coordination meetings with City staff
■ Up to X public presentations to City Council and other advisory committees
5
Evaluation Criteria:
Proposals will be evaluated on the following factors with equal weight given to each one.
The City of Lakeville has the right to reject any or all proposals without explanation.
(Total points possible — 60)
■ Proposer's ability and capacity to meet all Request for Proposals conditions and
expectations as solely determined by the City's selection committee. (10 points)
■ The proposal meets the goals as outlined in the Request for Proposals (10 points)
■ Value and price for services offered (10 points)
■ Ability to complete the job in the time allotted (no later than October of 2011)
(10 points)
■ Prior satisfactory conclusion of similar work or evidence of specific experience
regarding marketing and branding strategies (10 points)
■ Stated and demonstrated understanding of the scope of work being sought
(10 points)
Because consulting services require the expenditure of funds, the City Council will make
the final determination of whether to authorize funds for this project
The City does not guarantee selection of any vendor and reserves its right to reject all
proposals. Furthermore, the City may or may not accept the lowest price quotation and
reserves the right to select the proposal which best meets its needs and selection criteria.
RFP Timeline:
RFP Issue date — May XX, 2011
Proposals due — June XX, 2011
Interview consultant finalists — TBD
City Council approval selecting consultant -TBD
Award contract and begin work — TBD
Submission Deadline:
■ Five (5) hard copies of proposal and one (1) electronic version on CD or email
including all attachments and supplemental information delivered to Lakeville
City Hall no later than 4:30 p.m. on June XX, 2011:
Adam Kienberger
Economic Development Specialist
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
■ All questions by prospective responders regarding this RFP should contact:
Adam Kienberger
akienbergerglakevillemn. gov
952- 985 -4425
rel
��em No. —L
City of Lakeville
ZOO- 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: April 26, 2011
Subject: Update on Developer Forum
The Mayor and City Council have directed staff to conduct a development forum to
learn from customers that interact with the City on development related activities as
to how the City could improve in servicing those customers.
It has been recommended that a mailed name - optional survey be developed and
mailed to individuals that obtained a building permit or processed a planning
application with the City within in the last 3 -5 years prior to the Forum. The survey
would be sent to commercial and industrial brokers, owners of undeveloped
properties, contractors, developers, consultants (i.e. engineers and architects) and
home builders.
Attached is a copy of a draft survey that has been prepared by City staff. This draft
survey was reviewed by a group of five developers, contractors, and home builders
on April 20 and a number of changes were incorporated based on their comments.
The intent is to mail out this survey by the end of April.
The forum is being planned for mid -June and will be facilitated by an outside
facilitator that preferably has development experience. The results of the survey
would be presented at the forum and then the facilitator would receive comments,
feedback and concerns. It will not be the intent to attempt to respond to any of the
comments or concerns at the Forum, but rather just document the comments
received.
A summary of both the survey and comments will be presented to the EDC, Planning
Commission, Parks, Recreation and Natural Resources Committee and City Council.
This would be followed by discussions of possible City policies or requirements
pertaining to development that should be considered for change. No action by the
EDC is requested at this time.
City of Lakeville
Development Forum Survey
DRAFT
INTRODUCTION:
Please take a moment to complete the following survey. The survey is intended to provide an
opportunity for the City to hear constructive ideas and suggestions from those in the
development industry on how we might improve our services. The survey results will be used as
the basis of a discussion forum on . The forum will provide for further
exploration of these ideas and suggestions. Thank you for your candid responses and please
feel free to use the back of the survey or additional pages if needed when responding to the
questions.
QUESTIONS:
1. Please check all of the following that describes you.
Broker
Consultant (i.e. Engineer, Architect, etc.)
Undeveloped Property Owner Home Builder
Contractor
Developer
Other (describe)
2. What was the reason for your interaction with the City of Lakeville?
3. Please check all of the following you interacted with.
City Council Parks & Recreation Department
Economic Development Department Planning Department
Engineering /Environmental Department Planning Commission
Inspections Department Other
4. Was your project or application handled in a timely and responsive manner? Please provide
comments or suggestions on how the City could improve.
5. Based on your experience in Lakeville and elsewhere do you have any suggestions of how
the City could streamline or improve the procedures for processing or reviewing your
application or project?
6. Do you have any specific suggestions on fees or costs imposed by City ordinances which
hinder or deter development? If so, do you have any suggestions or examples from other
cities on how these item(s) could be paid for?
7. What aspects of the development review process does the City do well and how could they
be expanded or enhanced?
8. What other ideas or suggestions do you have that may assist in promoting development in
Lakeville?
COMPLETED SURVEYS:
The completed survey can be submitted back to City Hall in one of the following ways:
• By regular mail using the enclosed self addressed stamped envelope.
• Drop off at City Hall at 20195 Holyoke Avenue.
• Deposit in the utility bill drop box in front of City Hall.
• By email to
• By fax at 952 - 985 -4409
CONTACT INFORMATION (OPTIONAL):
The City may want to contact you for more information regarding your experiences with the City
please provide the following contact information:
Name
Address
Phone Number
Email
STAY INFORMED:
The City will also be holding an upcoming development forum to discuss and review the results
of the survey. If you wish to receive email updates regarding the results of the survey
and a notice of the upcoming Development Forum you may either provide your email
here or log onto the City of Lakeville's website at
and sign up for email updates and notices.
Thank you again for your responses and input.
.' NoO
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: April 22, 2011
Subject: Presentation of Dakota County Demographic and Socio- Economic Indicators
Dakota County staff has prepared a very informative presentation on demographic
and socio- economic indicators for all cities in Dakota County. This presentation was
made at March 18 Dakota County Mayors / Managers meeting and contains a
wealth of information.
Staff will review this presentation at the meeting and will have copies to distribute.
The presentation is fairly lengthy and in color and thus we did not want to require
EDC members to have to print it out. Electronic copies can be provided after the
meeting to anyone EDC member who would like one.
R F"�'
. _.
City of Lakeville
Community and Economic Development
Memorandum
To: Economic Development Commission ��
From: David L. Olson, Community and Economic Development Directo
Copy: Steve Mielke, City Administrator
Adam Kienberger, Economic Development Specialist
Date: April 26, 2011
Subject: April Director's Report
The following is the Director's Report for April, 2011.
State of the City Event
The State of the City event is scheduled for Wednesday, April 27 at Crystal Lake
Golf Club starting at 11:30 a.m. and is being hosted by the Lakeville Area Chamber
of Commerce. EDC members who are not Chamber members but would like to
attend, please contact Penny at 953 -4420 by Monday, April 25 and we can get you
registered.
Building Permit Report
The City issued building permits with a total valuation of $11,700,208 through
March. This compares to a total valuation of $13,678,371 though March of 2010.
The City issued commercial and industrial permits with a total valuation of
$3,137,500 through March compared to a total valuation of $693,000 through March
of 2010.
The City has also issued permits for 21 single family homes through March with a
total valuation of $6,364,000. This compares to 40 single family home permits
through March of 2010 with a total valuation of $10,701,000.
Lakeville Realtor Forum
City staff is working with the St. Paul Area Association of Realtors ( SPAAR) to host
an informational forum on Friday, May 13 to be held in City Hall. SPAAR is inviting
its members that work in the Lakeville area that wish to find out more information
about Lakeville. A number of City Department Heads along with representatives of
the ISD #194, the Lakeville Chamber of Commerce and the Dakota County CDA will
also be presenting information at the forum.
Minnesota High Tech Association Spring Conference
Adam and I attended the Minnesota High Tech Association Spring Conference held
on April 14 at the Minneapolis Convention Center. We partnered with Dakota
Future, Dakota Electric along with the cities of Apple Valley and Rosemount to have
a booth in the Exhibit Hall during the one day conference. By partnering with these
other agencies, it made the cost of the event extremely affordable and Adam and I
both made contacts with a number of high tech companies. This is an event that
we will likely continue to be part of in the future if we are able to partner with these
other agencies.
Development Update
Walmart: The City is currently reviewing preliminary and final plat applications for
the Walmart project. It is anticipated that the Planning Commission public hearing
for this project will be held at their second meeting in May or first meeting in June.
Pizza Ranch: The Pizza Ranch project located in the multi- tenant building is
nearing completion and should be completed in the next several weeks.
Spotlight on Business
Lakeville Tire and Auto service located in Downtown Lakeville was spotlighted at the
April 18 City Council meeting and EDC member Jack Matasosky made the
presentation. A copy of the Council memo on this business is attached.
Foreclosure Update
Attached is a copy of the March Foreclosure Update from the Dakota County CDA.
There were 27 Sheriff Sales in Lakeville during the month of March which compares
to the exact same number of Sheriff Sales in the month of February. This brings the
number of Sheriff Sales to 75 for the first quarter of 2011. There were a total of
317 Sheriff Sales in Lakeville in 2010.
•
April 18, 2011 Item No.
Spotlight on Business
Lakeville Tire & Auto Service
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.
Lakeville Tire & Auto Service will be featured at the April 18 City Council meeting. EDC
Member Jack Matasosky will present the information on Lakeville Tire & Auto Service, and
owner Mark Allstot will be present to accept the award.
Lakeville Tire & Auto Service is a full service auto repair and new tire sales facility located in the
southern area of Downtown Lakeville next to the Dairy Delight and just across from Main Street
Manor.
Owned by the Allstot family in Lakeville since 1995, Lakeville Tire & Auto prides itself on being a
full - service shop with long -term knowledgeable employees who over the years have really been
able to get to know the customers and their vehicles. Servicing many vehicles owned by
families mainly in Lakeville and Farmington, Lakeville Tire & Auto is able to offer everything
from preventative vehicle maintenance, to major repair, to tire sales of all sizes and brands.
A strong community partner, Lakeville Tire & Auto is involved in the local Business Expo, the
Downtown Lakeville Business Association Retailers Group, local church and sports groups, and
Pan `O Prog. An example of one more way Lakeville Tire & Auto strives to connect with its
customers is its recent certification of being a "Female Friendly" auto repair business by online
automotive advice website AskPatty.com. Lakeville Tire & Auto also partners with the business
community and services many professional and fleet vehicles for Lakeville area businesses
including several in the Airlake Industrial Park.
Lakeville Tire & Auto also provides a job and tax benefit to the community. In addition to the
four other people they employ, The Dakota County Assessor has assigned an estimated market
value of just over $300,000 to the property. Based on current tax capacity rates, this market
value will result in an estimated contribution of just over $10,000 in local property taxes going to
support the City, Dakota County, and Independent School District 194 in 2011.
On behalf of the Economic Development Commission I would like to thank Lakeville Tire & Auto
Service for being a valued part of the Lakeville business community.
Adam Kienberger
Economic Development Specialist
Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
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CDA Dakota County
Community Development Agency
9066000*6960009606*040
To: Dakota County Cities
From: Dan Rogness, Director of Community Revitalization
Date: April 15, 2011
Re: Foreclosure Update
y
M
Foreclosure Counseling Events
On Tuesday, March 29, CDA staff held free Walk -in Foreclosure Counseling for Homeowners
at the CDA's office building in Eagan. Twenty -one households attended the event, where they
were able to ask questions and get advice from trained Homeownership Specialists.
CDA staff is tentatively planning to hold another foreclosure event toward the end of May.
More details will be released once they become available.
Foreclosure Rescue Scams Update
A report released last week, "Have I Got a Deal for You! An Undercover Investigation of
Mortgage Loan Modification Scams," documented some of the tactics used by foreclosure
rescue scams to take advantage of homeowners. Among the findings:
55 percent of scammers required an upfront fee, or a small fee to complete minimal
work
43 percent guaranteed or made promises that they could secure a loan modification,
even before evaluating the homeowner's financial circumstances
24 percent advised homeowners to stop making mortgage payments
A coalition of fair housing non - profit organizations, including The National Fair Housing
Alliance, the Connecticut Fair Housing Center, Housing Opportunities Made Equal of Virginia,
Inc., and the Miami Valley Fair Housing Center commissioned the report, which can be viewed
in its entirety at
http : / /www.nationalfairhousing.org /Portals /33/ Loan %20Mod ification %20Scam %20 Repo rt Rdf
Foreclosure rescue scams continue to cause issues for Minnesota homeowners as well. Three
of the five news articles in this month's a -news document state and local homeowners who
have fallen victim to the scams.
For more information on fighting Minnesota foreclosure rescue scams, visit the Minnesota
Home Ownership Center's public education campaign website at
http://www.lookbeforeyouleal2.or-a/
Sighl HOME
CDA Dakota County OW N E RS H I P IL
Community Development Agency c f
0969000*099096000*0090
Dakota County Stats — March 2011
• # of Sheriff Sales in March — 197 (compared to 181 in March 20 10)
• Total Sheriff Sales for 2011 — 513 (compared to 545 Jan. -March 20 10)
• # of Notices of Pendency Filed in March — 350
• Total Notices of Pendency Filed in 2011 — 840
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
httl2://gis.co.dakota.mn.us/website/dakotanetgis/
The Dakota County Office of GIS is updating the 2011 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:
• LMS & Associates of St. Louis Park has been fined $100,000 according to the Minnesota
Department of Commerce. The firm billed homeowners for mortgage modification
services that were never received.
• Various out of state companies have been ordered to stop doing business in Minnesota
after charging homeowners upfront fees for services.
• A California company is being sued by the Minnesota Attorney General for allegedly
posing as homeowners' mortgage companies and then collecting fees for services that
were never provided.
• The foreclosure crisis is costing Minnesota cities time and money as they are forced to
care for abandoned properties.
• Dakota and Scott County officials are pondering how to help homeowners as
foreclosures are expected to remain high, and perhaps increase this year.
If you have any concerns, please call me at (651) 675 -4464 or send me an email at
drogness __dakotacda.state.mn.us
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�qim.z M-- 1 I
Mortgage services were not
received
Last update: March 7, 2011 - 7:55 PM
A man who offered loan modification
services without a license has been fined
$100,000, according to the Minnesota
Department of Commerce.
Todd Jacobson and his firm, LMS and
Associates of St. Louis Park, billed 105
clients up to $2,995 for mortgage
modification services they did not receive,
the order said.
Jacobson filed a false license application,
forged signatures, falsely represented
himself as a real estate broker and made
misleading statements to customers, the
order said. Jacobson did not admit the
charges but agreed not to contest them.
In a Feb. 3 order, Deputy Commerce
Commissioner Kevin Murphy wrote: "That
[Jacobson and LMS] preyed upon and took
advantage of struggling homeowners is
particularly offensive."
JANE FRIEDMANN
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Loan scams are thriving, Commerce
says
Loan modification scams are finding
victims in desperate homeowners.
By JAMES ELI SHIFFER', Star Tribune
Last update: March 10, 2011 - 9:49 PM
Homeowners desperate to fend off
foreclosure should watch out for companies
offering mortgage modifications they can't
deliver, the Commerce Department advised
Thursday.
A Michigan company called Save My Home
USA was recently told to stop doing business
in Minnesota after the department found it
had defrauded 118 Minnesotans out of
nearly $300,000 with false promises of
reducing their mortgage payments.
Last month, the agency slapped a $10,000
fine on two California companies after they
collected $12,000 from Minnesotans and
provided no "meaningful assistance." In
another recent action, Todd Jacobson and
his company, LMS and Associates of St. Louis
Park, were fined $100,000 for offering loan
modifications and other foreclosure - related
services without a license and using
deceptive tactics.
Save My Home USA of Madison Heights, Mich.,
could face even higher fines, based on the
unlicensed activities uncovered by the
Commerce Department. The company and its
owners, Jason McCallum, Justin McCallum
and Chad Buchanan, ignored subpoenas sent
in August, changed their phone numbers and
no longer appear to be doing business in
Minnesota, the agency said.
Customers told Commerce investigators that
they paid up to $3,995 to negotiate lower
mortgage payments. Just one of 23
customers interviewed by investigators said
they actually got a modification.
Dottie Lipe of Winsted, Minn., said she gave
$2,000 to Save My Home USA in 2009. "We
were talking to them for about three months.
All of a sudden they disappeared," Lipe said.
Her home is scheduled to be auctioned at a
sheriffs sale this month, she said.
Minnesota Commerce Commissioner Mike
Rothman urged consumers to contact the
Commerce Department (651- 296 -2488) if
they think they've been victimized.
Kari Rudd, a lawyer with the Foreclosure
Relief Law Project, recommended that
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�47m: [*fl;m i I 1"I I
homeowners seeking a way to avoid
foreclosure contact the Minnesota Home
Ownership Center (651- 659- 9336), which
can refer them to foreclosure counselors and
other resources.
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Page 1 of 2
AG: Calif. company duped Minn.
homeowners
By PAUL WALSH', Star Tribune
Last update: March 14, 2011 - 9:59 AM
An out -of -state mortgage company is being
accused of cheating Minnesota homeowners
out of thousands of dollars by masquerading
as their current lender.
A lawsuit filed Monday in Hennepin County
District Court by Minnesota Attorney General
Lori Swanson alleges that Meredian Financial
Corp. of Costa, Mesa., Calif., pretended to be
homeowners' current mortgage company in
order to gain their trust, then collected fees
for refinancing services not delivered.
"Meredian targeted homeowners struggling in
the troubled economy who were looking to
get out of an adjustable -rate mortgage or
lower their interest rate by refinancing,"
Swanson said in a statement announcing the
suit. The company's tactics, she said, "left
homeowners with the short end of the stick."
Numerous online consumer blogs indicate
that Mededian has been carrying out this
alleged scheme for the past few years. Also,
regulators in Georgia last year ordered
Meredian to stop doing business in their
state.
A telephone message was left with Meredian
seeking reaction to the suit.
Here's how the attorney general's office says
the scheme worked:
Meredian presented itself as a homeowner's
current mortgage lender, sometimes
mentioning the consumer's lender by name,
other times not. Meredian then made
numerous false representations including
low fixed rates, no out -of- pocket expenses,
no appraisal requirement, and that the
refinance had already been approved by an
underwriter, in order to get them to pay up-
front "rate- lock" fees.
Meredian said that these fees -- typically
from $1,000 to $4,000 -- would be refunded
at closing, which it contended would occur
within 30 -45 days.
Once Meredian obtained the fees, it would
cease work on the loan, creating excuses
such as asking for documents the
homeowner had already provided or that
were irrelevant to the refinance, or changing
the terms of the refinance with higher rates
and fees.
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Homeowners who attempted to cancel and
requested that Meredian return their up-
front fees were denied refunds.
Paul Walsh • 612-673-4482
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Page 1 of 2
Wave of foreclosures cost cities time
and money
Unpaid water bills, tracking down
landlords, chasing more people out
of more boarded buildings: When so
many property owners have
problems, city governments have
problems.
By Steve Brandt and Randy Furst, Star Tribune
Last update: March 23, 2011 - 1:44 PM
The north Minneapolis duplex where Latonia
Bray is a renter bears a bright orange placard
on its front door these days.It warns that
unless her landlord pays a bill of $117, her
water will be shut off in two weeks. The
duplex is also in foreclosure, so either way
she'll have to find new housing. "My hands are
tied, and what can I do ?" she wondered last
week.Her predicament is evident around
Minneapolis, St. Paul and other Minnesota
cities.As a rising tide of foreclosures washes
over them, local governments are getting
stuck spending more time dealing with the
growing problem -- and collecting less
money because of it.Bray's water bill is one
example. If her landlord doesn't pay the bill,
the city has to wait until the foreclosing
lender or a new owner settles up. While the
duplex sits empty, the city will be forced to
spread the costs of its water system over
fewer households.That's just one of many
new consequences.Police officers are
chasing people out of more boarded
buildings. Inspectors are issuing more
citations for uncut grass or unshoveled
snow. Assessors are having to more closely
scrutinize housing to determine its market
value.In New Prague, a rash of foreclosures
in one subdivision has left city officials
wrestling with whether to reconnect power
to vacant foreclosed homes in damp soils
and pay for a small amount of electricity
needed to keep sump pumps running.
Otherwise, water damage to those houses
could eat into the city's tax base.Laura Harris,
a lobbyist for the League of Minnesota Cities,
said that foreclosed properties, especially
those now empty, are eating up the time of
city officials.Member cities complain most
about the time involved in tracking down
owners of the property. "It's very difficult to
locate who the owner is," Harris said. That's
because mortgage loans are resold among
lenders and investors.In Minneapolis,
foreclosures are a dominant factor behind a
doubling of vacant properties tracked by the
city's problem property unit. That's jumped
from 360 properties last December to 718
this week. And that number could hit 1,000
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Page 2 of 2
by the end of next year, according to Tom
Deegan, who manages the unit.Deegan
estimated that 80 percent of those vacancies
result from foreclosure.Adding up the costs
Some of the costs of keeping an eye on those
abandoned houses are quantifiable. For
example, the city has spent $1 million to
board up properties this year. That cost can
be assessed against the property, like unpaid
water bills, but it can take years until the
property is sold before the assessment is
paid. Deegan said the city recovers maybe 60
percent of boarding costs.The city also
incurs indirect costs because Deegan's 10-
person unit spends about three - quarters of
its time tracking boarded property. That's
time that could be spent working with
problem tenants or owners in occupied
houses, he said.Those unoccupied houses
also aren't using utilities such as water,
sewer and garbage service in which the city
has invested.For example, the city has lost
2,400 residential garbage customers since
2003, a period that coincides with the spike
in foreclosures. That drop has cost the city
roughly $1.4 million in garbage fees.Although
the city saves on disposal costs, fixed costs
make up well more than half of the monthly
average garbage bill of $22. For example, city
garbage trucks still put on the same number
of miles running past those empty houses to
serve remaining customers. "It'll probably
make your garbage rates go up quicker than
they would have," said City Council President
Barb Johnson, whose ward is one of the
hardest hit by foreclosures. City coffers
miss $1 millionThat same customer loss
affects water and sewer collections. They're
running an estimated $1.1 million less this
year than they would be if those empty
homes were occupied. St. Paul water officials
say they're also seeing more water accounts
shut off for unpaid bills, although the
number of residential customers is up
overall.Having fewer customers to share the
fixed costs of city water is particularly critical
for Minneapolis because it's paying off a
$140 million ultrafiltration plant.But unless
Bray's landlord pays the water bill, the unit
won't be contributing. A water shutoff means
she'd need to find new housing by mid -
November, a month earlier than when her
landlord's lender is likely to take over the
property. Bray's move will pose extra costs
for the city, too, because she gets a city -
administered federal rent subsidy that will
have to be reissued. sbrandt c)startribune.
com • 612 - 673 -4438 rfurst@startribune.
com • 612 - 673 -7382
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Page 1 of 2
Foreclosures have officials in Scott,
Dakota pondering how to help
A grim rise in foreclosures creates
challenges for south -metro
counties: What to do and at what
cost?
By DAVID PETERSON and JOY POWELL, Star Tribune
staff writers
Last update: March 23, 2011 - 1:17 PM
Government officials across the southern
metro area are being warned that the home -
foreclosure mess is deepening, creating
serious questions as to what they can or
should do about it in a year when they
themselves face exceptionally tight budgets.
The increase in the number of sheriffs sales
in Dakota County from last year to this year
is expected to be almost as great as the total
number of sheriffs sales in 2006, that
county's board is being told.
And the board in Scott County was informed
this week that foreclosure numbers there are
expected to double this year over last, after
having doubled from the year before -- and
that it is likely to be a couple of years before
they stabilize.
"It is a daunting task," said Mary Monteith,
assistant director of the Carver County
Community Development Agency, which
works with Scott County on these issues.
"Some days we look at each other and ask,
'Why do we do this ? "'
Scott County Commissioner Jon Ulrich told
Monteith:
"My impression is that your caseload far
exceeds your ability to respond. We're taking
a sip out of a fire hydrant of water. And time
is not on anyone's side -- not the
homeowner's, and not the lender's."
Monteith said it's vital to get word out that
help is available for people sliding into crisis.
And the earlier they take steps to respond,
the better, she said. It's even possible for
government agencies to assemble packages
of financial help to get homeowners through
temporary crises.
In an interview on Wednesday, she stressed
that money is not being handed out willy-
nilly.
"We will not put public money in unless we
are satisfied that the hardship has been
overcome and can be shown -- on paper, in
black and white -- that they can now afford
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Page 2 of 2
that mortgage."
Both Scott and Dakota are among the state's
most affluent counties. As recently as 2001,
there were fewer than 200 sheriffs sales of
foreclosed properties in Dakota.
There were just fewer than 1,600 sheriffs
sales in 2007, with some of the highest rates
being in Fannington, South St. Paul and West
St. Paul.
The fallout is hitting homeowners'
associations, which are seeing dues go
unpaid; cities, which are dealing with unpaid
utility bills and unmowed lawns; and
neighborhoods, which are seeing property
values pulled down because of foreclosures,
Dakota County analysts said.
As the market corrects itself and there are
more foreclosures, more residents will be
moving into apartments, they said. Perhaps
that could help decrease rents, which in
2007 averaged $1,200 for a three - bedroom
apartment.
In Scott, meanwhile, Monteith said
Wednesday that sheriffs sales have zoomed
from 328 in 2006 to 606 last year and are
expected to top 1,240 this year, without
relenting anytime soon.
The No. 1 reason, her staff believes, is poor
money management: people who take on
more than they can afford. But that
accounted for only about a fifth of May's
cases. Other reasons included loss of a job,
divorce, medical costs, failed business
ventures and mortgage products such as
refinancings that people didn't understand.
"People will sign anything you put in front of
them; it's amazing," she told Scott
commissioners. "They beat themselves up
when they realize they didn't trust their gut
instincts."
dapeterson(astartribune.com 952- 882 -9023
jpowell@startribune.com • 952 -882 -9016
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1nanc: �& Commerce > Print> Cheerleader for the Twin Cities, in a sui..
Finance & Commerce
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Cheerleader for the Twin Cities, in a suit and tie
by Chris Newmarker
Published: March 30th, 2011
CEO of new group has mission to drive regional
development
Other major metro areas have them. But do Twin Cities residents
need to pay for an organization marketing the region's wonders to
outside business executives?
That's the question Michael Langley will have to address as the
newly appointed chief executive officer of the Greater
Minneapolis -St. Paul Regional Economic Development Partnership.
Some question whether the 13- county region needs yet another
economic development organization. The Itasca Project, an
informally organized group including chief executives of the area's
largest companies, latched onto a different point of view last year
- that the region could be missing out on opportunities because
there wasn't a go -to place for interested companies.
The Itasca Project helped set up the regional partnership in
January. Now it's up to Langley, who acted as a consultant in
setting up the organization, to prove that it's worth its $2.8 million
annual budget - nearly a third of which comes from county and
city governments and the rest from large corporations such as
Ecolab and General Mills whose chief executives sit on the
partnership's board.
: / /finance - commerce.com
Langley will receive a $257,000 annual salary, which does not
include yet- to -be- determined bonuses if he meets goals, such as actually creating or retaining jobs in the
Twin Cities.
Three pillars'
Sit down with the 58- year -old Langley and he will soon come to the three "pillars" the economic partnership
can supply for the Twin Cities economy:
Improve the brand identity of the Minneapolis -St. Paul region to companies and business executives
elsewhere in the United States - and the world. "If we're not telling our story on a global scale, we're
probably missing out on opportunities," he says.
Become a central repository of research and information about the region, and use that information to
help companies inside and outside the Twin Cities make decisions. That includes developing a regional
strategy by the end of 2011, with the partnership pinpointing target industries and sectors to grow in
the Twin Cities.
Provide project management and support to local economic development officials. That includes
providing leads on companies interested in their communities. "Then we're providing information to
help them as they create projects with companies that are interested in expanding or coming here,"
he says.
For now, Langley is building the organization, which is subletting downtown St. Paul space from the
Minnesota Chamber of Commerce for the next two years. Langley started about two weeks ago. He has one
full -time worker and a part- timer, and plans to hire at least 10 more people this year. The multisyllabic
name of the partnership could be changed. Langley is looking for people who know how to market and sell. A
website is in the works.
Langley seems personable enough himself. His accent gives away that he is a native of the South, born in
Arkansas.
Asked what the organization eventually would be-called, he demurred, "No scoop for you on that one yet."
'A solid strategy'
i The next step is making sure the regional economic partnership has a solid strategy in place.
of 1/31/2011 10.19 AM
Michael Langley, chief executive officer
of the new Greater Minneapolis -St. Paul
Regional Economic Development
Partnership. (Staff photo: Bill Klotz)
inance & Commerce > Print> Cheerleader for the Twin Cities, in a sui... http: // finance- commerce.com/wp- content /plugins /dmc_Sociable_f(-)olba...
j "You want to foster the industries that are already here while you're adding exciting new entrants to your
market," Langley said. "Health care is a big thing here and all the health and medical technology activities in
j the region.
"We still have the traditional wholesale and retail industries here. We have the food industry, the bio
industry. All those industries are extremely strong, and we want to continue seeing growth in those areas....
We have some great manufacturing companies here, and we want to foster that type of growth."
In many ways, Langley needs to do for the Twin Cities what he did for Pittsburgh, where he ran the
Allegheny Conference from 2003 to 2009.
Three organizations - the marketing- focused Pittsburgh Regional Alliance, the Greater Pittsburgh Chamber
of Commerce and the research - oriented Pennsylvania Economy League - formally joined in 2003 under the
j Allegheny Conference, which was similar to the Itasca Project before the merger.
"What Mike inherited when he came in, in 2003, was a brand -new entity that had just been put together....
There were a lot of challenges in the beginning to get it to operate as one entity serving 10 counties," said
Bill Flanagan, the Allegheny Conference's executive vice president of corporate relations since 2001.
Challenges included getting the Pittsburgh Regional Alliance to partner more with local economic government
officials to generate leads of companies interested in expanding or relocating.
"The other thing that has happened is much more attention being paid to our own members and the
businesses already operating in the region," Flanagan said.
A signature accomplishment for Langley was to help persuade officials at Westinghouse Electric Co., a former
employer, to build a new engineering center in the Pittsburgh area rather than the Carolinas, where the
company has a large presence.
"A lot of the big deals in the past five years have involved Pittsburgh -based companies, home -grown
companies making investments here," Flanagan said.
Langley left the Allegheny Conference in 2009 and went into consulting. Langley left the Allegheny
Conference at the same time that Dennis Yablonsky, a Pittsburgh -area native and former secretary of
Pennsylvania's Department of Community and Economic Development, was available to take over as the
group's chief executive, said Daniel Booker, a senior partner at the Reed Smith law firm who was on the
conference's board at the time. Langley says he saw opportunities in consulting, and he supported Yablonsky
replacing him.
So how did Langley end up here?
The Itasca Project hired him as a consultant for its jobs growth task force in March 2010. Eventually,
executives such as Doug Baker, the chief executive officer of St. Paul -based Ecolab, decided Langley was
experienced and accomplished enough to run the new partnership.
"Michael's work with the Itasca Project allowed him to become familiar with the region, as well as our
business and government communities - experience that will allow him to hit the ground running," Baker
said.
Facing skepticism
Not everyone in the Pittsburgh -area community thinks the Allegheny Conference has really helped. Jake
Haulk, the president of the Allegheny Institute for Public Policy, points out that the number of jobs in the
Pittsburgh metro area is still below where it was in 2001.
"I think he worked hard and he tried," Haulk said of Langley.
Marketing, though, can only go so far in selling a region, Haulk said. "Some people could sell soap to
anybody, but if you have great soap it's easier."
The Greater Minneapolis -St. Paul Regional Economic Development Partnership is already facing similar
skepticism. That includes questions about why the group is needed on top of the host of economic programs
and agencies already in Minnesota, from the St. Paul Port Authority to the Minnesota Department of
Employment and Economic Development.
'How many tax dollars have to go into trying to tell everybody, 'Gee, this is a wonderful place ?' Maybe this is
our own form of propaganda that we have to convince ourselves that it is so great to stay here," said Phil
Krinkie, president of the Taxpayers League of Minnesota.
But consultants who help companies find locations for new facilities have a different point of view about
regional economic development groups.
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"A community having a one -stop shop that can respond to and represent the whole region is very convenient
and very strong," said Christopher Steele, president of Newton Highlands, Mass. -based CWS Consulting
Group. "Just the presence of an organization like that gives the impression that there's a level of cohesion in
the region."
Pedro Eikelenboom, president of Arvore Consulting in Washington, D.C., said a regional approach helps
because companies interested in setting up new facilities can see there's a long -term plan. "You have to focus
on a few sectors: 'We're going to attract these sectors; name three or four. "'
Langley says the Twin Cities area has many assets to boast about - from an educated workforce to strong
research institutions to a variety of recreational activities.
"I'm someone who has come here by choice," he says. "This is a really great region. I know that if I'm
predisposed to be a part of this region, then there will be other people who understand that story."
Bio: Michael Langley
Title: CEO
Employer: Greater Minneapolis -St. Paul Regional Economic Development Partnership
Born: 1952, in Hot Springs, Ark.
Education: B.S. in analytical management, U.S. Naval Academy, Annapolis, Md.; M.S. in information
systems, Naval Postgraduate School in Monterey, Calif.
Career highlights: Founder and CEO of the Langley Group, 2009 -11; CEO of the Allegheny Conference in
Pittsburgh, Pa., 2003 -09; CEO of Westinghouse Audio Intelligence Devices Inc. in Fort Lauderdale, Fla.,
1993 -97; U.S. Navy officer, active duty and reserves, retiring as a captain, 1975 -2000.
Family: Wife, Julie Ann; adult son and daughter; two grandsons.
I
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3 of 3 3/31/2011 10:39 AM
BUSINESS' J 0"U NA L April 1, 2011
mspbj.com
Y
Industrial outlook spurs projects
BY SAM BLACK
STAFF WRITER
Dan Regan is preparing 65 acres of
land in Lakeville for a new business
park where he hopes to attract large
industrial -space tenants.
Regan, principal with Airlake
Development Inc. in Lakeville, is
optimistic that he can attract a large
enough tenant, who needs at least
100,000 square feet of space, to jump -
start the newAirlake 70 business park.
The park, which could accommodate
up to 900,000 square feet of industrial
space, is adjacent to the Regan fam-
ily's Airlake Business Park, which was
developed over the past 20 years and
is running low on big lots.
Regan expects to get city environ-
mental approvals in May and wants
to break ground on a building this
summer, provided he can attract a
large enough lead tenant.
"Right now, I've got a prospect list
that's several real serious prospects
deep that we're chasing, and we're
hoping to land one of these build -to-
suits that would kick off this expan-
sion yet in 2011," Regan said. "I'm
confident that if nothing else, it will
happen in 2012 at the latest."
There are several signs that manu-
facturers are inching their way back
from the recession, news that whets
the appetite of developers like Regan.
Minnesota's manufacturing sector
added 4,500 jobs in 2010, account-
ing for about one of every four jobs
added in the state last year. Exports
of manufactured goods made in the
state soared 17.3 percent in 2010 to
about $17.2 billion. Plus, some big
manufacturers in the state posted
strong gains in 2010, including 3M Co.,
Polaris Industries Inc., Pentair Inc.,
Donaldson Co. Inc. and Graco Inc.
Meanwhile, space absorption,
which is a reflection of demand for
commercial real estate, has been im-
proving. (Absorption is the measure-
ment of leased space at one point in
time compared to the amount leased
at another time.)
Demand for Twin Cities industrial
space pushed absorption to 260,862
square feet for the fourth quarter
of 2010, the highest level since the
third quarter of 2007, according to
the 2011 Annual Market Report is-
sued in March by Cassidy Turley in
Minneapolis.
The industrial vacancy rate, a mea-
sure of real estate supply, dipped in
the fourth quarter to about 13 per-
cent from about 13.5 percent in the
I
ON THE UPSWING
Quarterly industrial absorption in the Twin Cities hit the highest level in two years in the
fourth quarter of 2010.
1.5 —
1.0 —
0.5 —
N o
o -0.5 —
C
-1.5
2 ' 0 - 0 0 0 0 0 0 0 0 0 0 0 0
� 4 0 7 0 0 � , Q ,
?o ?o ?o bo
'Po" ?o ?o ?o bo ?o ?o ?o ?o� ?o� ?o� '
B 6 8 9 9 9 9 S O O O O
Source: Cassidy Turley
third quarter.
The improving metrics reflect the
anecdotal evidence in the market.
"We've seen more activity in the
past six months than we've seen in
the past four years," said Jon Yanta,
senior vice president at NorthMarq
Real Estate Services in Bloomington.
Distribution space seems to be par-
ticularly in demand, Yanta said. There
are a number of businesses seeking
between 200,000 and 400,000 square
feet in the metro area for distribution
and there are few options that large.
Yanta predicts the Twin Cities will
start to see some build -to -suit proj-
ects for specific companies this year,
but he doesn't expect significant
speculative construction until rents
stabilize and concessions, such as
free rent, go away.
Pat Mascia, senior vice president
of Duke Realty Corp. who heads
the company's Twin Cities office,
said Duke recently landed several
deals that demonstrate the mar-
ket is picking up steam, including a
88,000 - square -foot deal with Chicago -
based Columbia Pipe & Supply Co. at
the Apollo Industrial Center in Eagan
and an expansion of 24,000 square feet
in Brooklyn Park by St. Louis -based
Graybar Electric Co. Inc.
"We're seeing a lot more activity in
the market, and it's just good to get
some deals inked," Mascia said.
Mascia believes industrial demand
is slowly recovering, but he said
there's still a lot of vacancy that needs
to be soaked up before there's any
substantial development.
Industrial is one of those product
types that turns around a bit quicker
than other sectors.
It only takes six or seven months tc
build a building, so it's less risky thar
office, certainly, Mascia said.
"You can time the market a little bi
better, theoretically. And so if you se(
that development is coming, but tha
it's a year or two away, now is the timf
to start lining up your land positions
if you dont have one."
sbiack @bizjournals.com 1 (612) 288 -2103
n81161 Nunn 1 mnncn .—,., • •"^
Dan Regan, principal of Airlake Development, is optimistic he can land a large tenant and break
ground on a Lakeville business park. Industrial developers are seeing more demand for space.