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HomeMy WebLinkAbout05-24-11City of Lakeville Economic Development Commission Regular Meeting Agenda Tuesday, May 24, 2011, 4:30 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order 2. Approve April 26, 2011 meeting minutes 3. Continued Discussion of City Business Subsidy Policy 4. Update on Business Marketing Strategy Request for Proposals and Features, Advantages, and Benefits Process 5. Review of Planning Efforts for Developer Forum 6. Director's Report 7. Adjourn Attachments: April, 2011 Building Permit Report April, 2011 Foreclosure Update Finance & Commerce article, "Duke Realty: uptick in industrial deals," April 22, 2011 Finance & Commerce article, "Report: Twin Cities get an A for business - friendly taxes, F for supporting minorities," May 6, 2011 R.:R City of Lakeville Economic Development Commission Meeting Minutes April 26, 2011 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Brantly, Longie, Starfield, Vlasak, Emond, Smith, Tushie, 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: Comm. Schubert. 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 March 22, 2011 Meeting Minutes Motion 11.06 Comms. Emond / Longie moved to approve the minutes of the March 22, 2011 as presented. Motion carried unanimously. 3. Review of Request for Proposals: Business Marketing Strategy Mr. Kienberger reviewed the EDC memo outlining the work of the Marketing Subcommittee and sought comments on the attached draft request for proposals for a Business Marketing Strategy. Mr. Kienberger added that at the last Subcommittee meeting it was recommended that a Features Advantages and Benefits (FAB) exercise be conducted in conjunction with the RFP to help self- identify how and what we should be marketing. Comm. Brantly noted that the FAB exercise will be able to use people who already know the community help analyze what we do best. Comm. Tushie suggested that creativity be rated higher than other categories in the scoring section of the RFP to encourage unique responses and demonstrate the desire for an original approach to the EDC's business marketing strategy. The EDC discussed if the FAB exercise should be conducted in prior to the RFP being sent out or in conjunction with the RFP process. Economic Development Commission Meeting Minutes April 22, 2011 It was suggested that a subcommittee be formed to work on the FAB exercise and determine select the participants for the FAB exercise. The EDC concluded that the existing Marketing Subcommittee would spearhead the FAB exercise and it was noted that Comm. Tushie would like to participate in the planning process. Comms. Brantly and Longie suggested the FAB participants to be selected should be between 15 and 20 people as to get a diverse representation of the community, but yet maintain a manageable group size. Staff will email the EDC for suggestions on people to contact to participate in the FAB exercise. Motion 11.07 Comms. Longie / Brantly moved-to include the comments mentioned by the EDC in the RFP: - forward it to City Council for authorization to solicit a. - marketing consultant. Motion carried unanimously. 4. Review of Planning Efforts for Developer Forum Mr. Olson reviewed the EDC memo providing an update on the planned Developer Forum. The group reviewed the draft survey to be sent out to the development community. Ex- officio member Chamber of Commerce Executive Director Todd Bornhauser joined the meeting at 5:17 p,m. Comm.,.Emond asked if the results of the survey will be shared with the participants and anyone - else who is interested in the process. Mr. Mielke responded that the results will be presented at the forum and used with the comments received through a facilitated session at the forum to analyze City development practices.and procedures. Comm. Tushie noted that something similar was done several years ago and the results weren't ; terribly useful as developers can be reluctant to say anything negative that could affect their projects. Chair Matasosky added that as a developer, he feels he can be very open on the topic. Some developers may prefer to respond anonymously which is possible as the survey doesn't require a name or company to be disclosed on it. Mayor Bellows stated that candid comments will be encouraged in the cover letter signed by him that would be attached to each survey. Mayor Bellows excused himself from the meeting at 5:30 p.m. 2 Economic Development Commission Meeting Minutes April 22, 2011 Comm. Tushie asked if there would be follow -up calls to encourage participation in the survey process. Mr. Mielke stated that the respondents will be given a variety of options for responding to the survey including an online version with a URL that will be noted in the letter sent to them. 5. Review of 2010 Census Information for Lakeville and Dakota County Mr. Olson reviewed a presentation highlighting some of the 2010 Census results as prepared by Dakota County staff. The presentation was distributed to the EDC at the meeting. 6. Director's Report Mr. Olson reviewed the Director's Report. 7. Adjourn The meeting was adjourned at 6:00 - p.m. Respectfully submitted by: Attested to: Adam Kienberger, - Kecordfng Secretary R. T. Brantly, Secretary 3 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: May 24, 2011 Subject: Review of Proposed Business Subsidy Policy Staff presented the attached flow chart at the March EDC meeting which outlines the process that starts with the Strategic Plan and ends with the development of policies for the implementation of the specific tools for an incentive tool box. 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 tools that involve financial assistance are to be offered and for what type of projects. Based on the EDC's concurrence with this flow chart / outline, staff recommends that the attached proposed Business Subsidy Policy that has previously been reviewed by the EDC be recommended to the City Council for approval. This proposed policy identifies the criteria by which any project will be considered for financial incentives. This document also becomes the basis on which policies for specific tools are based. It should be mentioned that this policy can be revised at any time if it is determined after reviewing and /or approving any projects for a subsidy or incentive that changes or additions are warranted. A number of additional issues associated with incentives have been discussed during previous meetings on business subsidies and incentives. The issues have included: designating more areas for higher density housing, the City providing more regional ponding, distinguishing Lakeville from other cities, fostering relationships with commercial /industrial brokers, reviewing best practices in other parts of the country and possible reductions or revisions to current development fees and charges. While many of these issues may have merit, a number of them will involve significant policy discussions by the City Council and thus will take additional time. It is staff's position that the all individual tools to be included in an Incentive "Too Box" will not be developed at once, but rather be approved and incorporated over time. However there is a need to have an overall policy in place that becomes the basis for starting to add specific tools to the tool box. A number of these additional issues will be addressed during the Developer Survey and Forum process and the follow -up discussions that result involving the EDC, Planning Commission, and City Council. The development of a Marketing Strategy will address a number of these issues as well. It is staff's opinion that we need to start to put some of the tools in place so that when a project comes forward, we have adopted policies for at least some of the basic tools in place. Action Requested Recommend approval to the City Council of the attached Business Subsidy Policy. 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 approval by the EDC and City Council. Strategic Plan for Economic Development Goal #2 Development of an Incentive Toolbox Business practices 0 Intangible Competitive fees -o Tangible ($) Community attributes (marketing) Examples of Goals for Economic Development ■ Goals of Economic Development ■ "Tool" policies Policy Implementation by Economic Development staff ■ Implementation of "tools" on Economic Development projects • Sector specific goals (i.e. medical) • Job growth • Tax base growth • Business /job retention • Determination of need • Determination of ROI • Application of business subsidy policy • Application of "tool" policies Policy Guidance (Adopted by Council) Proposed Policy 1.25 LAKEVILLE ECONOMIC DEVELOPMENT COMMISSION BUSINESS SUBSIDY POLICY 1.00 PURPOSE 1.01 This Policy is adopted for purposes of the Business Subsidies Act (the "Act'), Minnesota Statues, Sections 116J.993 through 116J.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. 2.00 POLICY 2.01 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 Comprehensive Land Use Plan. 2.02 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. 2.03 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: a. 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. b. 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. c. Redevelopment projects that result in the stabilization of business districts or neighborhoods by elimination of blighting conditions. d. 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. e. 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. f. Retention of existing jobs. To be considered under this category, it must be demonstrated — to the satisfaction of the City - that the loss of j obs is specific and can be demonstrated. 2.04 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. 2.05 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 and current Strategic Plan for Economic Development. The level of assistance to be provided for any project is at the discretion of City of Lakeville. 2.06 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. 2.07 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 116J.933 through Section 116J.955 except those subsidies as exempted by same. Al o. V 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: May 20, 2011 Subject: Update on Business Marketing Strategy and FAB Exercise The City Council authorized distribution of the request for proposals for a Business Marketing Strategy at their May 16 meeting. Copies of the RFP were sent to 24 marketing firms located mainly within Minnesota and a few companies out of state. Reponses to the RFP are due by Friday, June 3rd The Marketing Subcommittee will be reviewing and ranking the RFP submittals and forwarding a recommendation to the EDC at a special meeting tentatively scheduled for either July 6 th or 7 A timeline for completion of the Business Marketing Strategy is attached. As discussed at the last EDC meeting, the Marketing Subcommittee will also be spearheading a FAB (Features, Benefits and Advantages) exercise to help identify key marketing messages to provide to the selected consultant. A list of names and businesses has been assembled to solicit participation in the FAB exercise. Invitations will be sent out and follow -up phone calls made to elicit broad participation by the business community. The Marketing Subcommittee is also recommending hiring a facilitator to conduct the exercise and extract meaningful responses from the participants. A recommendation of hiring Todd Rapp of Himle Horner is being forwarded to the EDC at this time. Action Requested: The Marketing Subcommittee is seeking continued confirmation of the direction the process is moving and is also recommending hiring Todd Rapp to facilitate the upcoming FAB exercise. Business Marketing Strategy Timeline Steps in the process: Develop an RFP Completed Distribute RFP Mailed out and posted on City website May 18, 2011 Responses due June 3, 2011 Select a consultant(s) Responses will be sent to subcommittee along with a score sheet Monday, June 6th Subcommittee review and ranking Thursday, June 10 at 8:00 a.m. Schedule interviews with finalists for week of June 13 Recommend consultant to EDC for approval Special EDC meeting either July 6/7 th . City Attorney develops contract with selected consultant Execute contract with City Council approval July 18 /August 1 Develop the marketing plan Will vary based on deliverables of contract/proposal from selected marketing consultant Implementation 2012 No. J 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: May 24, 2011 Subject: Update on Developer Forum The Developer Survey that was reviewed by the EDC at the April meeting along with a letter from the Mayor has been sent out to 150 developers, business owners, brokers, contractors and other development professionals that have been involved in a development project in the City in the past five (5) years. The Mayor and City Council directed staff to conduct a development forum to learn from customers that have interacted with the City on development related activities as to how the City could improve processing and approving development projects. The deadline for turning in surveys is Monday, May 23 The Forum to review the survey results has been scheduled for Wednesday, June 15 at 8:00 a.m. at the Community Room. John Shardlow with Bonestroo has been retained by the City to facilitate the forum. With the exception of the City Administrator, it is not the intention to have City staff participate in the forum. A summary of both the survey and comments received at the Forum will be presented to the EDC, Planning Commission, Parks, Recreation and Natural Resources Committee and City Council. This would be followed by discussions of any possible City policies or requirements pertaining to development that should be considered for change. Action Requested: No action by the EDC is requested at this time. to " b 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: May 24, 2011 Subject: May Director's Report The following is the Director's Report for May, 2011. June and July Meeting Dates As a result of the timing of the review of the proposals that will be received for the Marketing Strategy RFP, several person's vacation plans, and the traditional mid- summer break in EDC meetings, staff along with members of the Marketing Subcommittee, are recommending that the next EDC meeting be held Wednesday, July 6 th at 4:30 p.m. This would be the only meeting for June and July. Building Permit Reuort The City issued building permits with a total valuation of $16,223,485 through April. This compares to a total valuation of $18,670,734 though April of 2010. The City issued commercial and industrial permits with a total valuation of $3,214,500 through April compared to a total valuation of $727,000 through April of 2010. The City has also issued permits for 31 single family homes through April with a total valuation of $9,150,000. This compares to 54 single family home permits through April of 2010 with a total valuation of $14,182,000. Lakeville Realtor Forum The City along with the St. Paul Area Association of Realtors (SPAAR) hosted a Lakeville Realtors informational forum on Friday, May 13 held in City Hall. Approximately 55 Realtors attended this 2 1 /2 hour event that included informational presentations by a number of Department Heads, and representatives from the Lakeville Area Chamber of Commerce, ISD #194, and the Dakota County CDA. The evaluations from the Realtors that attended the event were very positive. It is anticipated that we will host this type of event every 2 -3 years. Development Update Walmart: The City Planning Commission unanimously recommended approval of the preliminary and final plat applications for the Walmart project at their May 19 meeting. It is anticipated that the City Council will be considering this project at their June 6 th meeting. Airlake 70: The City Council approved the Environmental Assessment Worksheet (EAW) for the 66 acre proposed industrial Development to be located east of Cedar Avenue and south of the extension of Co. Rd. 70. Airlake Development will now be making an application to fill approximately 1 acre of wetland on the site. Park Nicollet Clinic: A building permit is ready to be issued for Park Nicollet to remodel the former Hollywood Video space in TimberCrest adjacent to Applebees. Park Nicollet will be remodeling this 5,000 square foot space for an Out - Patient Clinic that will include Family Medicine, Pediatrics, OB and Radiology. Pizza Ranch: The Pizza Ranch restaurant opened for business on Monday, May 9 th They are located in the multi- tenant building in front of HOM Furniture. Spotlight on Business Metro Equity Management located on 210 Street was spotlighted at the May 16 City Council meeting and EDC member Jeannie Schubert made the presentation. A copy of the Council memo on this business is attached. Foreclosure Update Attached is a copy of the April Foreclosure Update from the Dakota County CDA. There were 29 Sheriff Sales in Lakeville during the month of April which compares to 27 Sheriff Sales in both March and February. This brings the number of Sheriff Sales to 104 for the first four months of 2011. There were a total of 317 Sheriff Sales in Lakeville in 2010. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . . . . . . . . . . . . . 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K a W o L. eq U C i U c. lu N bo ao 64 u �d v v v� �Qw.a v� �QdUw VC7 0 0 000000000 000000000 0000000ao ao0000000 N M M a0 U 00 N M M DO D\ O O N O 0 O 00 [- C rq O r- 00 M M l� M O l- � 00 V'1 M --� --� r- I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C C C 0 0 0 0 0 0 i 000000 000000 000�oo 000000 0 00000 M ON O O ON O O M l- --� i it 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 i 00 ioi 0000ioi 0000 00 00 0 0 O O M O O' O 000 000 000 oo� O O O O O O O C O O �D N [� O O O O O - M M -y OI O O O O O O O O O O O N N O O O O O O O O 00 O O � O O O O O O O O O O O O 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O G G M_ v v1 O O O M 0 0 0 v1 C 00 � �o O O O C O C C C C C C C O O 0 0 0 0 0 C C 0 0 0 0 O O V V7 N 00 o o0 - N eq May 16, 2011 Item No. Spotlight on Business Metro Equity Management 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. Metro Equity Management will be featured at the May 16 City Council meeting. Community & Economic Development Director, Dave Olson will present the information on Metro Equity Management, and owner Mark Hotzler will be present to accept this recognition. Metro Equity Management is a Lakeville company that owns, leases and manages over one million square feet of commercial real estate in the Upper Midwest and Florida. Having located in the Downtown Lakeville Mall (now called Holyoke Crossing) in 2007, they moved last spring to an office building they purchased just south of Downtown on 210 Street. While they own properties in Florida, Apple Valley, Stillwater, Blaine and Minneapolis, they are mostly known locally for their presence in Downtown Lakeville and their key role in keeping it an active and vibrant place. By working with a variety of tenants ranging from small business entrepreneurs to large national companies, Metro Equity Management interacts with many faces of both the local and national business community. As a true community partner, Metro Equity Management is involved with the Downtown Lakeville Business Association, Pan O' Prog, the Lakeville Area Chamber of Commerce, Downtown Holiday events and other projects including the recent mural on the north side of Market Plaza depicting Historic Lakeville. Metro Equity also provides a job and tax benefit to the community. They employ 10 people in their office, and the buildings they manage in Downtown Lakeville are home to over 150 employees of the various businesses located there. Adam Kienber Economic D elopment Specialist Financial Impact: $ 0 Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: ddh HOME Dakota County O W N S RS H I P Community Development Agency come&im ...................... To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: May 11, 2011 Re: Foreclosure Update CDA in New Partnership with Fannie Mae The CDA is participating in a new partnership with the Minnesota Home Ownership Center and Fannie Mae. Through this new partnership, the CDA's foreclosure counselors have direct access to local Fannie Mae staff dedicated to making loan solutions faster and easier for area homeowners with loans that are owned by Fannie Mae. This new partnership will allow the CDA and other non - profit foreclosure counselors across the state to involve Fannie Mae, the loan owner, also known as the investor, in the loan mortgage workout process at the outset of a request for help. Previously, foreclosure counselors and homeowners worked with a lender or servicer's loss mitigation department for months to secure a loan modification and prevent foreclosure. Under this new process, that wait time may be trimmed to a matter of days or weeks. The process doesn't guarantee a retention solution for homeowners but will provide the homeowner with a more timely answer to their request for assistance. To find out if a mortgage is owned by Fannie Mae, homeowners may ask their mortgage servicer, check online by using the Fannie Mae Loan Lookup tool at www.fanniemae.com /1oanlookup or call Fannie Mae at 1- 800- 7FANNIE (8 a.m. to 8 p.m. EST). Homeowners are still encouraged to call the CDA foreclosure line at 651- 675 -4555 if they're experiencing mortgage issues, whether or not their loan is owned by Fannie Mae. Foreclosure Counseling Event The CDA is offering another evening of free Walk -in Foreclosure Counseling for Homeowners on Tuesday, May 24 from 3:30 — 6:30 p.m. The event will be held at the Pleasant Hill Library located at 1490 S. Frontage Road in Hastings. 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, solutions for long -term housing needs, as well as the new Fannie Mae partnership. If you'd like more information about the event, please call Shannon Kehoe at 651- 675 -4472. HOME CDA Dakota County OWN E �S H I P Community Development Agency co Hl 096000090000*0000000*0 Dakota County Stats — April 2011 • # of Sheriff Sales in April — 191 (compared to 176 in April 20 10) • Total Sheriff Sales for 2011 — 704 (compared to 721 Jan. -April 2010) • # of Notices of Pendency Filed in April — 213 • Total Notices of Pendency Filed in 2011 — 1,053 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 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: • An article published in April discussed how almost half of all March home sales in the Twin Cities area were foreclosures. An agreement has been reached with the nation's 14 largest mortgage lenders to address complaints about the foreclosure process. The agreement requires that mortgage servicers improve their communication with borrowers and to limit the extent to which foreclosure can be pursued during the loan modification process. If you have any concerns, please call me at (6S 1) 675 -4464 or send me an email at drogness (&dakotacda.state.mn.us O N .i a O N 0 co O N Ln � to t — —— co N M M N N — — M N u1 O M O M N 00 00 O% 1� !�' O �O M �Q O a, _ 'D M M, C C, M V N N^ O O u d h r o Z- %D -- u y 0 -N- C C L h Cb N H — — 3 co � N 3 4O — N CO a0 QO Ln Ln — v %D 0% — %a — O N N N C)% 1� P... 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C T u 0 oU o c 0 L O fd � H 3 >, N = C m .� C � V C N N A C b0 N L d o p N ca u O n z a� o f� y fd U c v � c fd a o n u z 0 N O y z� N w O� z (n N U N O V w C n j C O U a Ln N d C Ln �O O E u 2 0 (n w a0 o� U$ w ;q o 41 Y O c fd C O f N_ C o C N O E L 0 LL StarTribune- Article Page Almost half of all March closed home sales in Twin Cities were foreclosures By Just Listed April 12, 2011, 10:44 AM Page 1 of 1 New home sale data shows that foreclosures and short sales continue to wreak havoc on the housing market in the Twin Cities metro area. During March, bank -owned listings represented 43 percent of all pending sales, causing the median sale price of all closed deals to fall 15 percent to $140,000, according to data released this morning by the Minneapolis Area Association of Realtors. Prices plummeted in January and have been unable to gain any traction. In January, the median sale price was $140,000 and in February it was $142,500. Most of the downward pressure on the medians come as a result of an increase in the number of distressed sales. The median price of all traditional deals was down only 4 percent, while prices on foreclosures fell 11 percent. Agents say that while the purchase of a short sale or foreclosure can take many months, many lenders are eager to liquidate their holdings and are dropping prices. Historically, sales activity last month was down significantly, but here's evidence that more buyers are in the market than there have been since the crash. The overall number of closed sales was down 4 percent compared with last year, when sales were bouyed by the home buyer's tax credit. Compared with 2009, sales last month rose 6 percent and were 15 percent higher than 2008. Traditional sellers are having a difficult time competing with lenders, causing something of a shortage of listings that aren't bank -owned or short sales. In fact, the number of new listings that hit the market last month fell 30 percent compared with last year, causing overall inventory levels to fall 5 percent - the lowest inventory for that March since 2005. © 2011 Star Tribune. All rights reserved. http: / /www.startribune .com/printblog / ?id= 119696354 4/13/2011 Format Dynamics:: Dell Viewer StarTribune Page 1 of 2 Deal reached on foreclosure flaws Article by: ALEJANDRO LAZO and E. SCOTT RECKARD Los Angeles Times, Los Angeles Times Updated: April 13, 2011 - 9:32 PM Federal banking regulators have reached agreements with the nation's 14 biggest mortgage lenders to address long- standing complaints that the foreclosure process is unfair to delinquent borrowers trying to stay in their homes. The settlements with the nation's largest banks, including U.S. Bancorp and Wells Fargo & Co., are aimed at correcting what consumers and consumer groups say are fundamental flaws in the repossession process. The agreements are the result of a review of bank practices begun last year by the nation's biggest bank enforcers -- the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve and the Federal Deposit Insurance Corp. "The review uncovered unsafe and unsound practices, violations of law and foreclosure processes geared toward speed and quantity, instead of quality and accuracy," the OTS said in a statement. The nation's big regulators were widely criticized and accused of failing to prevent the unsafe lending practices that led to the housing bubble over the past decade. Now, many consumer advocates feel these regulators have not gone far enough to correct errors found in foreclosure practices. As details of the plan began to leak out last week, these groups criticized the proposed agreements as being watered down. A fundamental complaint was that regulators were allowing banks to draw up their own plans for correcting their problems, giving the banks 60 days to do so. The agreements announced by the federal regulators Wednesday required the mortgage servicers to improve their communications with borrowers and to limit the extent to which they can pursue foreclosure during the loan- modification process. The agreements require lenders to ensure foreclosures are not pursued once a mortgage has been approved for modification, and it establishes a single http:// www .startribune.com/templates /fdcp ?unique = 1302884031278 4/15/2011 Format Dynamics:: Dell Viewer Page 2 of 2 � point of contact for borrowers throughout the loan- modification and foreclosure processes. A separate group of bank enforcers -- a coalition of attorneys general from all 50 states as well as the Department of Justice and other federal agencies -- are also seeking to settle with lenders. The group led by the state attorneys general have issued their own demands in a detailed, 27 -page term sheet, and negotiations between them and the banks remain ongoing. `a - • w 1� MOMMIM11 W" JIM -in http:// www .startribune.com/templates /fdcp ?unique= 1302884031278 4/15/2011 Finance & Commerce > Print > Duke Realty: uptick in industrial deals Page 1 of 2 Finance & Commerce http: / /finance - commerce.com Duke Realty: uptick in industrial deals by Burl Gilyard Published: April 22nd, 2011 After a few sluggish years, commercial property owners are beginning to see some encouraging signals of recovery. The local office of Indianapolis -based Duke Realty Corp., a real estate investment trust (REIT), reports that it has signed 466,333 square feet of new leases, renewals and expansions in its local industrial portfolio. Pat Mascia, senior vice president for Duke Realty's local office, said the company began to see the market changing for the better late last year. "We saw activity in the market but did not see a lot of deals getting signed," Mascia said of the conditions in 2010. "But that seemed to change toward the end of 2010 and continued into the first quarter of 2011. I think people are feeling more confident about the economy and see that now is a good time to lease space." Mascia said Duke is now seeing "more real deal activity, not just tire kicking." Duke's recent deals include a new lease for 88,020 square feet for the Chicago -based Columbia Pipe & Supply Co. at its Apollo Industrial Center I property in Eagan. The company, which supplies pipes for industrial contractors, is new to Minnesota. "This is their first move into Minnesota, and we're excited to have them. They were a perfect fit for the vacancy that we had there," Mascia said, noting that Columbia took space that had previously been occupied by two tenants. In another deal that's new to the Duke portfolio, Bloomington -based Holiday Stationstores Inc. leased 38,957 square feet at the Hampshire Distribution Center North in Bloomington. Verizon Wireless inked a significant expansion at the Hampshire Distribution Center North, adding 30,958 square feet of space. The company now leases a total of 75,658 square feet at the facility. In Brooklyn Park, Graybar Electric Co. added 24,000 square feet to its lease. The company now occupies 144,048 square feet at the Crosstown North Business Center 12. CVRx, a medical manufacturing company, had been subleasing space from another company at the Crosstown North Business Center 6 complex in Brooklyn Park. Now, CVRx has signed a direct lease with Duke for 26,379 square feet there, technically a new lease for the REIT. Duke's local holdings include 4 million square feet of industrial space and 1.3 million square feet of office space. Mascia said that the industrial properties are close to 90 percent leased and that the office portfolio is 97 percent leased. Nationally, Duke has a portfolio of 139 million square feet of commercial space. The company owns land positions in the Twin Cities for future development, but Mascia does not yet see the return of speculative (or "spec ") development just yet. "We're dusting off our models and taking a new look at things - costs have not gone down," Mascia said. "I don't foresee a lot of spec industrial construction anytime soon." But in the long term, Mascia said Duke wants to expand its local holdings. "We're interested in growing our industrial portfolio in the Twin Cities, whether that's through http: // finance - commerce. com /wp- contentlplugins /dmc_ sociable toolbar /wp- print.php ?p =... 04/25/2011 Pat Mascia, senior vice president, Duke Realty Corp. Finance & Commerce > Print > Duke Realty: uptick in industrial deals Page 2 of 2 development or acquisition," Mascia said. At the end of 2010, Bloomington -based NorthMarq reported that the local vacancy rate for multitenant industrial space had climbed to 17.2 percent, the highest rate in more than a decade. But NorthMarq projected that the market appeared to have bottomed out: "The worst appears to be over." Scott Moe, a veteran industrial broker and vice president of leasing for Duke Realty, said landlords and brokers are still cautious about the market but are clearly more optimistic. "In the first quarter of this year, there was significantly greater velocity in the market," Moe said. "I talk to brokers on a daily basis, and they're all feeling better about things. We had nowhere to go but up." Finance & Commerce recently reported that the northwest area saw a strong first quarter for industrial leasing. Moe noted that Duke actually saw more activity in the south metro than in the northwest. "It's hard to read the tea leaves on that," Moe said. Mascia said Duke has more deals in the pipeline. "We've got some more that are in the works; we hope this momentum will continue," Mascia said. Complete URL: http: // finance - commerce.com/ 2011 /04/ duke - realty- uptick -in- industrial - deals/ http: // finance - commerce.com /wp- content /plugins /dmc_ sociable toolbar /wp- print.php ?p =... 04/25/2011 inance & Commerce > Print > Keport: 'hvm Cities get an A for basins... http: / /hnance- commerce.com/wp- content /plugins /dmc_sociable toolba... Finance & Commerce /finance - commerce.com Report: Twin Cities get an A for business - friendly taxes, F for supporting minorities by Chris Newmarker Published: May 6th, 2011 The tax situation for Twin Cities businesses isn't as bad as some people say, the metro area needs more people with advanced degrees, and the region flunks when it comes to supporting minority entrepreneurs. That was the message Friday from the Minneapolis Regional Chamber of Commerce, which released its third annual MSP Business Vitality Index. The index is a compilation of rankings from various government agencies, private sources and media outlets - assigning letter grades of A through F for how the Twin Cities stacked up compared with similar metro areas. The peer group included Boston, Atlanta, St. Louis, Denver, Seattle, Austin, Texas, and Portland, Ore Surprises included the Twin Cities getting an A for the overall taxes businesses have to pay. Todd Klingel, the president and chief executive officer of the Minneapolis Regional Chamber, said Minnesota's corporate income tax rate may be a steep 9.8 percent, but the metro area is actually pretty competitive when it comes to sales and property taxes. The A ranking on taxes may provide some fodder for state politicians debating how to close a $5 billion budget deficit for the 2011 -13 biennium. (For his part, Klingel would still like to see the corporate tax rate reduced, and he noted that out -of -state businesses look at corporate taxes when deciding where to locate.) Klingel pointed out that the Twin Cities get an A for adults with a high school diploma, and a B for intelligence and adults with bachelor's degrees. But the region gets a C for adults with advanced degrees, a situation that does not bode well if medical technology and other research -heavy industries are the best avenues for growth here. For the first time, the chamber also included rankings involving minority issues. In that area, the Twin Cities received an F. The metro area flunked on how it helps minority entrepreneurs - as well as racial gaps in unemployment. The problem has been a top issue for Minneapolis Mayor R.T. Rybak, who recently urged businesses leaders at a regional economic development event to do more to support the region's minority communities. Michael Langley, who recently started as chief executive officer of the new Minneapolis St. Paul Regional Economic Development Partnership, said there are many A's for him to tout as he seeks to persuade companies and business executives to locate in the region. "We have a great many assets to talk about," Langley said. Minneapolis -St. Paul: A's and F's A's Number of Fortune 500 Companies (CNN Money, 2010) Effective Tax Rate (KPMG, 2010) Unemployment Rate (Bureau of Labor Statistics, 2011) Overall Quality of Life (Portfolio.com, 2010) Cleanliness - Visitor Perceptions (Travel and Leisure, 2010) Average Commute Times (American City Business Journals, 2010) Best Cities for Working Mothers (Forbes, 2010) of 2 5/9/20112:14 PM Downtown Minneapolis (F &C file photo) inance & Commerce > Print > Report: Twin Cities get an A for busines... http:H finance - commerce. com /wp- content /plugins /dmc_sociable_toolba... Adults with High School Diploma (U.S. Census Bureau, 2011) F's Best Cities for Minority Entrepreneurs (Forbes, 2011) Weather - Visitor Perceptions (Travel and Leisure, 2010) Racial Gap in Unemployment - African Americans versus White (Minnesota Public Radio, 2011) Racial Gap in Unemployment - Latinos versus White (Minnesota Public Radio, 2011) Source: Minneapolis Regional Chamber of Commerce's 2011 MSP Business Vitality Index. Complete URL: http:/ /finance- commerce.com /2011/05/ report- twin - cities- get -an -a- for - business- friendly- taxes -f- for- supporting- minorities/ of') V90011 ? • 14 pm