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Home My WebLink About08-30-11City of Lakeville Economic Development Commission Regular Meeting A ends Tuesday, August 30, 2011, 4:30 p.m. City Hall, 20195 Holyoke Avenue Lakeville, MN 1. Call meeting to order 2. Approve July 6, 2011 meeting minutes 3. Presentation by Tripp Muldrow of Arnett Muldrow and Associates on Review of Marketing Strategy Project 4. Continued Discussion Regarding Manufacturing Uses in the Office Park (OP) Zoning District 5. Presentation of Mid -Year Development Update 6. Director's Report 7. Adjourn Attachments: July, 2011 Building Permit Report June, 2011 Foreclosure Update "Cities aim lower, leaving behind dreams of utopia" StarTribune.com, July 11, 2011 "Solar player Despatch Industries changes hands" StarTribune.com, July 22, 2011 NorthMarq Compass Report Highlights, July 2011 "City of Lakeville honors Gander Mountain for business growth ", Press Release from Gander Mountain, August 18, 2011 "Rosemount business moves to Lakeville" Dakota County Tribune, August 18, 2011 Item No. � City of Lakeville Economic Development Commission Meeting Minutes July 6, 2011 Marion Conference Room, City Hall Members Present: Comms. Matasosky, Brantly, Starfield, Vlasak, 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, Emond, Longie. 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 April 26, 2011 Meeting Minutes Motion 11.08 Comms. Starfield /Brantly moved to approve the minutes of the April 26, 2011 meeting as presented. Motion carried unanimously. 3. Review of Marketing Subcommittee Recommendation on a Marketing Consultant Mr. Kienberger reviewed the work the Marketing Subcommittee has done to recommend a consultant for creation of a business marketing strategy. The EDC Marketing Subcommittee is recommending that the EDC recommend to City Council retaining the services of Arnett Muldrow & Associates to develop Lakeville's Business Marketing Strategy. Chair Matasosky and Comm. Brantly noted that the selection process went very well and are confident in the recommendation by the Subcommittee. Comm. Starfield added that having an out of state perspective will be helpful in developing an objective strategy. Mr. Olson stated that a Features Advantages Benefits (FAB) exercise was originally planned for completion prior to hiring a marketing consultant. It is also the Subcommittee's recommendation that this be done as part of the consultant's process. Mr. Olson stated that with an EDC recommendation a contract will be developed and sent to the City Council for approval at their July 18 meeting. Economic Development Commission Meeting Minutes July 6, 2011 Motion 11.09 Comms. Starfield /Schubert moved to recommend that the City Council select Arnett Muldrow & Associates to complete a Business Marketing Strategy. Motion carried unanimously. 4. Continued Discussion of Business Subsidy Policy Mr. Olson reviewed the EDC memo reviewing a proposed business subsidy policy. 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. Mr. Mielke added that the City Council will consider providing financial incentives to businesses if the goals in this policy are addressed. This gives them a framework to work from. The EDC discussed potential uses of TIF and how affordable senior housing is defined. Motion 11.10 Comms. Schubert/Vlasak moved to recommend that the City Council select Arnett Muldrow & Associates to complete a Business Marketing Strategy. Motion carried unanimously. Chair Matasosky added that the EDC needs to continue to focus on creating distinguishing efforts to make Lakeville more competitive. 5. Review of Planning Efforts for Developer Forum Mr. Mielke reviewed a June 24 memo to the City Council reviewing the results of the Developer Forum held on June 15. He noted that the results are being used to identify both process and policy issues that can be analyzed as part of a continuous improvement process for interacting with the development community. Comm. Brantly asked if the City's development fees are calculated on a break even basis. Mr. Mielke responded that the revenues from fees collected depend on the year. The goal and basis for the fees are to break even over time. Chair Matasosky noted that the forum was constructive and very open and honest in discussion. He added that some of the analysis will be to continue to gauge who benefits and identify who shares in the costs of development in Lakeville. Ex- Officio Member Bornhauser asked how you combat staff bias in the development review process. Mr. Mielke responded that the focus is on offering options and alternatives in the review process based on the current city codes enacted by the City Council. 2 Economic Development Commission Meeting Minutes July 6, 2011 6. Review of 2011 Commercial /Industrial Taxpayer Information Mr. Olson reviewed the EDC memo illustrating 2011 commercial and industrial taxpayer information. 7. Director's Report Mr. Olson reviewed the Director's Report. 8. Adjourn The meeting was adjourned at 6:00 p.m. Respectfully submitted by: Attested to: Adam Kienberger, Recording Secretary R. T. Brantly, Secretary k Item No. 3 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: August 30, 2011 Subject: Lakeville Business Marketing Strategy Kickoff The EDC recommended at its July 6 th meeting that the City Council select Arnett Muldrow & Associates to develop a business marketing strategy for Lakeville. The City Council approved the contract for services at their July 18 meeting. Arnett Muldrow & Associates is a planning, economic development, community branding, and historic preservation firm located in Greenville, South Carolina. They have a wide range of experience from around the country doing marketing and branding for municipalities and understand the economic development implications of a solid business marketing strategy. Tripp Muldrow will be at the meeting to introduce himself to the EDC and make a brief presentation about how we will go about crafting the business marketing strategy. A steering committee has also been formed for the project consisting of community representatives and City staff. The committee will be used as a sounding board throughout the process to help guide the work of the consultant while developing the business marketing strategy. Commissioners Brantly and Longie have volunteered to serve on the steering committee representing the EDC. Other members include Jeanne Huffer from the Lakeville Chamber /Convention & Visitors Bureau, Judy Tschumper, DLBA Executive Director, Sue Palm, Lakeville Communications Manager, along with Dave and I. The business marketing strategy process will also involve many other groups and individuals from the community as indicated in the proposal by Arnett Muldrow & Associates. Action Requested: None. This presentation will mark the official start of the development of Lakeville's business marketing strategy process. La�i((e Memorandum Item No.. City of Lakeville Planning Department To: Economic Development Commission From: Daryl Morey, Planning Director Adam Kienberger, Economic Development Specialist, Copy: Steve Mielke, City Administrator David Olson, Community and Economic Development Director Date: August 30, 2011 Subject: 0 -P, Office Park District Uses On May 17, 2010 the City Council approved amendments to the zoning and subdivision ordinances and the zoning map. The amendments were approved following a 16 month review process that included discussions at several Planning Commission and City Council work sessions and Economic Development Commission meetings, as well as presentation at a public open house. The amendments were processed as a follow -up to the City's Comprehensive Plan amendment approved in December, 2008. The City updates its Comprehensive Plan, and subsequently its zoning and subdivision ordinances, every 10 years as required by State law. The 2010 Zoning Ordinance update combined the CC, Corporate Campus and C -W, Commercial - Warehousing districts and renamed the district OP, Office Park. In addition, land along CR 70 east of 1 -35 and south of Fairfield Business Campus was rezoned to OP District. Manufacturing was removed as an allowed conditional use in the OP District and several new uses were added to the district including research and development facilities, trade and post secondary schools, hotels, hospitals, fitness centers and health clubs, and commercial recreation facilities. The OP District continues to allow compounding, assembly and packaging of products and materials by conditional use permit and manufacturing remains an allowed use in both the 1 -1 and 1 -2 districts. I have attached a table listing the permitted, accessory, conditional, interim, and administrative uses allowed in the old CC District compared with the new OP District. The decision to remove manufacturing by conditional use permit in the OP District was based upon the premise that manufacturing is a permitted use in both the 1 -1 and 1 -2 districts, which tend to be more removed from residential uses. This issue was previously discussed at the January 25, 2011 EDC meeting. The EDC discussed adding a manufacturing definition to the Zoning Ordinance and whether certain light or clean manufacturing uses could be considered as a conditional use if they meet the purpose and intent of the OP District as identified by the Zoning Ordinance. The EDC further discussed notifying existing OP District businesses of any recommended changes to the uses allowed in the OP District. The OP District use issue was also discussed by the Planning Commission at their February 3, 2011 work session. The Planning Commission recommended that staff work with the EDC on creating manufacturing definitions and standards that would allow less intense manufacturing uses by conditional use permit in the OP District. In the coming months, the Planning Commission will be reviewing the amendments approved with the 2010 Zoning Ordinance update and will be considering additional amendments to recommend to the City Council. After researching similar zoning districts in the cities of Apple Valley, Blaine, Burnsville, Eagan, and Woodbury there are a couple of options that the EDC and Planning Commission could consider. It should be noted that each city has a slightly different way of approaching office and industrial park development and all cities varied in how they defined and regulated office parks and business campuses. While it was found that none of the cities that were compared attempted to define different types of manufacturing, those that allowed manufacturing in the various types of office park districts utilized variations of performance standards and percentage requirements to decrease the intensity of the manufacturing impact. Some sample regulations include: • Light manufacturing and processing of a type producing negligible smoke, dust, odor, fumes or noise. • Processing, fabrication, storage or manufacturing light materials or wholesaling operations or service. • Light fabrication /manufacturing when contained entirely within the building. • Manufacturing, production, processing, cleaning, storage, servicing, repair or testing of materials, goods or products that is wholly contained within a building and which meets and maintains all applicable standards established by the state. • Manufacturing, compounding, assembly, packaging, or indoor storage of products and materials as an accessory use provided that such activity shall not occupy more than 20% of the gross floor area of the building. • Offices with attached manufacturing or warehouse combinations wherein manufacturing or warehouse space shall not exceed 90% of the floor area per occupant. Office space shall be placed in a location nearest to the customer entrance. If the EDC is in agreement with the idea of adding manufacturing back in to the OP District as a conditional use, Staff recommends including it as part of the upcoming Zoning Ordinance revision process. If reincorporated it is further recommended that manufacturing be regulated similarly to the examples given above along with associated performance standards reflecting the intention of the OP District. Action Requested Staff is requesting feedback from the EDC on the allowance of manufacturing uses meeting certain performance standards by conditional use permit in the OP District for discussion with the Planning Commission at a future work session. Attachments 2 2010 ZONING ORDINANCE UPDATE OP DISTRICT (NEW) vs. CC DISTRICT (OLD) Permitted Used Added Hotels Research and development facilities Trade and post secondary schools Permitted Uses Removed Governmental and public utility buildings and structures other than City of Lakeville moved to conditional use permit Outdoor civic events Accessory Uses Added Ground source heat pump systems Satellite TVROs Solar energy systems Accesso Uses Removed None Conditional Uses Added Commercial recreation facilities Fitness centers and health clubs Governmental and public utility buildings and structures other than City of Lakeville Hospitals Self stora a facilities WECS that exceed the height limit of this district Conditional Uses Removed Manufacturing Interim Uses Added Uses allowed in the 1 -1 District as of 5/17/10 Interim Uses Removed None Administrative Uses Added WECS that meet the height limit of this district Administrative Uses Removed Other uses of the same general character as those listed as a ermitted use in this district City of Lakeville Economic Development Commission Meeting Minutes .January 25, 2011 Marion Conference Room, City Hall embers Present: Comms. Matasosky, Brantly, Longie, Tushie, Vlasak, Emond, S Ex- officio member Mayor Mark Bellows, Ex- officio member Chamber of Co m e Executive Director Todd Bornhauser, Ex- officio member City Administrator Steve rc Ike. Members Aftnt: Comms. Schubert, Starfield. Others Present: Dkvid Olson, Community & Economic Development Director; Adam Kienberger, Economi evelopment Specialist; Daryl Morey, Planning Director; Dennis Feller, Finance Director, 1. Call Meeting to Order Chair Matasosky called the me ' g to order at 4:35 p.m. in the Marion Conference Room of City Hall, 20195 Holyoke Nenue, Lakeville, Minnesota. 2. Approve November 23, 2010 Meeting Wnutes Motion 11.01 Comms. Emond /Smith mohd to approve the minutes of the November 23, 2010 meeting s presented. Motion carried unanimously. 3. Election of Officers Chair Matasosky solicited nominations for the positions of'bkair, Vice Chair and Secretary of the EDC. Motion 11.02 Comms. Smith /Emond moved to renew the existing cers of the EDC for 2011 as follows: Chair, Jack Matasosky, Vice air, Gary Tushie, Secretary, Bob Brantly. Motion carried unanimo v. Steve Mielke noted that the City Council is proposing to shift the appointme nominees to the various boards and commissions to the first quarter of the instead of the end of the calendar year. 4. Discussion of Office Park (OP) Zoning District Uses David Olson introduced the EDC memo outlining the Office Park (OP) zoning district. Economic Development Commission Meeting Minutes January 25, 2011 Daryl Morey reviewed the EDC memo and gave a history of the evolution of the allowed uses within OP zoning district formerly the Corporate Campus (CC) and Commercial Warehousing (C -W) zoning district. New Morning Windows, which is located in the Fairfield Business Campus, was recently listed for sale. An issue has been raised that the zoning of the Fairfield Business Campus no longer allows manufacturing as a conditional use. Fairfield Business Campus is zoned OP, Office Park District. Chair Matasosky indicated that the EDC wasn't aware that the manufacturing use was removed when the CC district was converted to the newly created OP district. He added that it was important to make the affected businesses aware of the change. Mr. Morey stated that manufacturing was previously allowed as a conditional use (CUP) in the CC district. CUP's run with the property and are not tied to individual businesses. Comm. Emond asked if a new business occupied the New Morning Windows property that was not a manufacturing business, would a business somewhere down the road be able to go back to utilize the existing CUP for the property to begin manufacturing again. Mr. Morey responded that he would follow up with the City Attorney to address that question. [Lakeville City Attorney Roger Knutson has responded with his opinion that under section 11 -15 -3D of Lakeville City Code the CUP on the property would expire if it was not utilized for more than a year.] Mr. Mielke mentioned that one approach to providing for manufacturing in the OP district would be to try to differentiate between "smokestacks" and "clean" manufacturing types of businesses. Ex- officio member Bornhauser asked if the former CC district was the only area of Lakeville affected by this change. Mr. Mielke responded that the area just south of the Fairfield Business Campus was previously zoned CW and is now a part of the new OP district. Comm. Tushie stated that heavy manufacturing doesn't belong in an office park setting. Some cities have used the presence of loading docks or a calculation related to floor space dedicated to manufacturing to separate types of manufacturing that is allowed in- office parks. Mr. Olson reviewed a handout outlining the changes in the OP zoning district that was used throughout the zoning ordinance amendment process last year. Mr. Mielke concluded the discussion by stating that the issue will be discussed by the Planning Commission at a future meeting and all businesses and property 2 Economic Development Commission Meeting Minutes January 25, 2011 owners potentially impacted by these changes will be notified so that they can be included in the public review process. Presentation of a Summary of Existing and Previous Tax Increment Financing (TIF) Districts in the City of Lakeville Mr. Olson reviewed the EDC memo outlining the historical use of TIF in Lakeville. Dennis Feller reviewed each of the existing TIF districts along with their or' final intentions and then outlined the outcomes and impacts of each district. Chair Matasosky commented that the report reflected a good demonstr on on the City's return on investment of this economic development tool. 6. Update on Marketing Plan Initiative Adam Kienberger reviewed EDC memo and recapped them ing of the Marketing Subcommittee. Mr. Kienberger noted that the Community Develop ent Block Grant (CDBG) program is being utilized to fund the initial marke g plan development. It is proposed that an RFP for a marketing / -'er Itant be developed by the Subcommittee. It was also the recommendathe Subcommittee to have the EDC appoint Clinton Kennedy as the fourth me f the Subc ommittee. Several Commissioners complimented a s rt video City staff had produced the past spring for the Google Fiber application. ff was requested that a link to the video be shared with the rest of the EDC as example of a method the City can use to market itself. Motion 11.03 Comms. Tushi emond moved to appoint Lakeville resident Clinton Kenned Fanimously. EDC's Marketing Subcommittee and move forward with the ting initiative as outlined at the meeting. Motion carried 7. Presentation on Prop6sal from WebQA Mr. Olson review 'the EDC memo outlining a proposal the City has received from a com/c ludded a calle #o WebQA to partner with the City to produce avalue -added ir ory as part of the City's website. The directory would offer Lakeville s n opportunity to have a presence on the City's website while allowing ate a "micro -site" to offer coupons, business links, and other value -added he proposal would be part of a three -year contract with the City for no fee e for the company to solicit web - advertisements from local businesses to on the WebQA portion of the business directory website. Ten percent of es of the advertisement sales would be shared with the City of Lakeville. 3 Meeting Notes Planning Commission Work Session Thursday, February 3, 2011 Marion Conference Room Planning Commission work session commenced at 7:30 p.m. in the Marion Conference n at City Hall. Commis ' ners Present: Chair Bart Davis, Vice Chair Brooks Lillehei, Secretary Genevieve Adler, Karl tning, and Linda Maguire. Staff Present: Pt ing Director Daryl Morey, Community and Economic Development Director Dave Olson, and As iate Planners Frank Dempsey and Allyn Kuennen. Others Present: Jim Chair Davis opened the work Conservation Easements McShane, and John Dietrich. Associate Planner Allyn Kuennen presented his Jan 28, 2011 memorandum providing a history of the City of Lakeville's use of conservation ea ents. This information is being provided to the Planning Commission due to a pending co rvation easement vacation application. The memorandum is intended to inform the Plan ' Commission of why, when and where conservation easements have been utilized in the cit ver the past 16 years. Jim Reitter, 20690 Jutland Place, referenced a handout provided by th ity of Lakeville, information contained in the City of Lakeville Resident Guide, and Minnes , State Statute 84C, all of which use the terms "forever" or "permanent" in relation to conservation sements. At the request of Commissioner Drotning, Mr. Kuennen described the land features purpose associated with existing conservation easements 11, 14, 15, 18, 21, 25, 26, 27, 37, 39, d 47 as identified on the exhibit attached to Mr. Kuennen's January 28, 2011 memorandum. The Planning Commission suggested that staff work with the City Attorney's office to differentiate between conservation easements that can be modified and those that cannot. OP, Office Park District Uses Planning Director Daryl Morey presented his January 27, 2011 memorandum describing changes to the allowed uses in the OP, Office Park District that occurred with the 2010 Zoning Ordinance Update. He stated that manufacturing was removed as a conditional use in the OP District due to potential adverse impacts of certain manufacturing uses to nearby residential areas. He stated that the Economic Development Commission (EDC) reviewed and discussed the OP District uses at their January 25, 2011 meeting and recommended that a definition of Planning Commission Work Session February 3, 2011 manufacturing be added to the Zoning Ordinance and that light manufacturing uses be considered as a conditional use in the OP District. The Planning Commission recommended that staff work with the EDC on creating manufacturing definitions and standards that would allow less intense manufacturing uses by conditional use in the OP District. Raven Lake Third Addition Rezoning Associate Planner Frank Dempsey presented his January 28, 2011 memorandum providing the background of a request by developer Tim McShane for rezoning a portion of property located on the east side of Kenwood Trail (CSAH 50) at Jurel Way from office /residential transition commercial to allow a proposed retail use. Mr. McShane and Mr. Dietrich provided additi al background on their request. The Planning Commission unanimously supported re- guiding the northwest portigp the subject property for commercial use and rezoning the property to either C -1 or Q0S given the buffer that will be provided to the adjacent single family homes to the south east by the existing wetland, trees, and topography and the proposed ponding and la raping. Structured Parking Studv Planning Director Daryl Morey presented the structured parki study prepared by planning consultant TPC dated January 12, 2011. The Zoning Ordi ce parking requirements currently do not differentiate between surface and structured par ' The parking study recommends the creation of separate structured parking requireme for public park and ride facilities, multiple family apartments and/or senior housing b d upon recommendations from the Institute of Transportation Engineers and the low parking demand generated by these uses. He stated the study was prepared due to tw roposed senior housing projects with underground parking that are requesting arking stall depth less than currently required by the Zoning Ordinance. In addition, he stat that the Kenrick Avenue Park & Ride, which was constructed in public right -of -way a as therefore exempt from the City's parking requirements, included a parking N depth of 18 feet (20 feet is required by ordinance) and a drive aisle width of 25 feet (24 t is required by ordinance) citing those dimensions as industry standards for public transit p ing ramps. The majority of PlanningCommission members recommended no change to the current parking requirements. One P inning Commission member suggested that staff monitor this issue for possible re- evalua ' n at a future date. The Planni Commission reviewed the December 15, 2010 City Council work session minutes with respOct to Agenda Item 2: Board and Commission appointment process. Ater reviewing and d' ussing the minutes it was agreed that Planning Commission Chair Bart Davis will send an ail to the City Administrator requesting the opportunity for a joint work session with the Council. 2 Item Na 5 City of Lakeville Community and Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Steven Mielke, City Administrator Adam Kienberger, Economic Development Specialist Date: August 26, 2011 Subject: Mid -year Business Development Update The City Council requested and staff presented an update on the status of business development activities which was presented at the August 15 City Council meeting. This was done in conjunction with Spotlight on Business for Gander Mountain. Staff will review this presentation with the EDC at Tuesday's meeting. Item No. 6 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: August 26, 2011 Subject: August Director's Report The following is the Director's Report for August, 2011. Building Permit Report The City issued building permits with a total valuation of $37,396,840 through July. This compares to a total valuation of $32,894,919 through July of 2010. The City issued commercial and industrial permits with a total valuation of $6,094,000 through July compared to a total valuation of $1,483,000 through July of 2010. The City has also issued permits for 67 single family homes through July with a total valuation of $20,777,000. This compares to 87 single family home permits through July of 2010 with a total valuation of $23,434,000. The average value of the single family permits issue to date in 2011 is $310,000 compared to an average value of $269,000 during the same period in 2010. Development Update Hosanna / Ebenezer Senior Housing Project: A ground- breaking has been scheduled for Sunday, August 28 for this 93 unit senior housing project. Krause - Anderson is the general contractor. A pre - construction meeting with the City is scheduled for August 30 This project obtained housing revenue bond financing from both the Dakota County and Scott County CDAs. Walmart Project: Walmart will be closing on the acquisition of their site in the next several days. A pre - construction meeting with the City is scheduled for September 1 The City has not been notified as to the contractor that Walmart has selected. ImageTrend: Construction continues on the ImageTrend expansion located at 20855 Kensington Blvd. in the Fairfield Business Campus. This expansion involves the development of the additional 3.39 acre parcel that the City sold to the Company in 2009. ImageTrend has already met its required job creation goal of 21 jobs since the land sale occurred. This two -story addition is scheduled to be substantially completed by the end of the year. Goodwill: Construction is progressing on the 20,000 square foot new Goodwill store located on Kenrick Avenue adjacent to the Minnesota Tile building just west of the Comfort Inn Motel. Stonehenge Development is constructing this new store and will be leasing it to Goodwill. Revised Business Subsidy Policy The City Council voted to approve the revised Business Subsidy Policy as recommended by the EDC at their August 1 st meeting. Staff is in the process of preparing policies for specific business subsidy tools and will be bringing these forward for review by the EDC prior to forwarding them to the City Council. Spotlight on Business Gander Mountain was spotlighted at the August 1 st City Council meeting. Since it was done in conjunction with a mid -year development update, I made the presentation. Rather than a PowerPoint presentation, Adam and Tim Klausler put together a three minute video on the remodeled Gander Mountain store and the development of the Gander Academy into the re- modeled store. Staff will show the video at Tuesday's meeting. A copy of the press release issued by Gander Mountain is included in your agenda packet. Foreclosure Update Attached is a copy of the June Foreclosure Update from the Dakota County CDA. There were 25 Sheriff Sales in Lakeville during the month of June. This brings the number of Sheriff Sales to 149 for the first half of 2011. This compares to 168 in the first half of 2010 and 106 in the first half of 2009. O O cn I( G\ O �+ W O O O c�A 00 o O o 0 0 0 0 ° o N N is O ° o. 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W N A c.n O O O O O OI OOC IOI OCOO IOI OO I 0 0 0 0 0 0 C C C C C C C w A W Vt .•- W I O 0 oU0 \C C \O O cn C to C w O O O O C J f N W f C O C C C N C C C C C C U Cn w J N W N O C C O C O O O O O C C C C C C C C C cn A (A C C W i.n - pc 00 Cn N � �c 00 � N A .0 Oo W O�C 00 -P- LA C O CA C �c C.A to O O O C O C fT C O N G (n Cn cn N N O 00 A cn O W O N O O O C C C O O O C O 0 0 O O O O O C O 0 0 O I O O C I O I O C C O I C I C C I O I C C C C C C I C I C C C C 8 C C C 0 O O w_ W N A �.n A N 00 O 0o G A C O O CDA Dakota County Community Development Agency 0906*000000*60*0009066 To: Dakota County Cities From: Dan Rogness, Director of Community Revitalization Date: July 14, 2011 Re: Foreclosure Update t / 2011 Half Year Summary & Comparison The following summary contains notice of pendency and foreclosure activity for the first half (January — June) of 2011 in comparison to the same 6 -month time period from 2009 and 2010. So far in 2011, sheriff sale numbers are almost on par with 2010 levels. Last year was a record breaking year for sheriff sales in Dakota County. Although sheriff sales have remained consistent with 2010 numbers, notice of pendency numbers have decreased by about 24 percent compared to 2010. HUD Emergency Homeowner Loan Program (EHLP) Update HUD's EHLP program, designed to provide mortgage payment relief to eligible homeowners who have experienced a drop in income from involuntary un- or underemployment, launched in Minnesota on July 5. The Minnesota Homeownership Center is accepting pre - applications until July 22, 2011. For more information, visit www.ehipminnesota.com or call 1- 866 - 462 -6466. The CDA is participating in outreach to Dakota County residents, including sending EHLP information to homeowners who may possibly be eligible for the program, informing social service agencies, religious communities and libraries, and hosting information sessions at the CDA's office building. Notices of Pendency Sheriff Sales 2009 2010 2011 2009 2010 2011 Apple Valley 243 247 200 110 154 135 Burnsville 301 320 226 149 181 172 Eagan 263 255 209 122 139 155 Farmington 179 179 125 81 97 98 Hastings 119 103 89 52 48 59 IGH 125 111 100 47 52 68 Lakeville 295 311 208 106 168 149 Mendota Heights 31 13 22 3 6 15 Rosemount 123 98 78 54 45 57 South St. Paul 155 147 98 63 89 79 West St. Paul 76 73 48 29 52 41 Small Cities 75 76 64 34 33 39 Total 1,985 1 1,933 1,467 850 1,064 1,067 So far in 2011, sheriff sale numbers are almost on par with 2010 levels. Last year was a record breaking year for sheriff sales in Dakota County. Although sheriff sales have remained consistent with 2010 numbers, notice of pendency numbers have decreased by about 24 percent compared to 2010. HUD Emergency Homeowner Loan Program (EHLP) Update HUD's EHLP program, designed to provide mortgage payment relief to eligible homeowners who have experienced a drop in income from involuntary un- or underemployment, launched in Minnesota on July 5. The Minnesota Homeownership Center is accepting pre - applications until July 22, 2011. For more information, visit www.ehipminnesota.com or call 1- 866 - 462 -6466. The CDA is participating in outreach to Dakota County residents, including sending EHLP information to homeowners who may possibly be eligible for the program, informing social service agencies, religious communities and libraries, and hosting information sessions at the CDA's office building. Dakota County Community Development Agency CDA0066060006909606009009 Dakota County Stats — June 2011 • # of Sheriff Sales in June — 193 (compared to 152 in June 20 10) • Total Sheriff Sales for 2011 — 1,067 (compared to 1,064 Jan. -June 20 10) • # of Notices of Pendency Filed in June — 173 • Total Notices of Pendency Filed in 2011 — 1,467 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: • Wells Fargo announced they would no longer offer reverse mortgages, an option for borrowers who are at least 62 or older. Reverse mortgages allow borrowers to access the equity in their homes for personal expenses, and are sometimes used as a loss mitigation option. • Minnesota foreclosure filings in May decreased by 11.2 percent compared to May 2010. • Four Twin Cities residents face racketeering charges in what has been described as the "next wave" in mortgage fraud. • Bank of America said it would pay $8.5 billion to settle claims with investors holding about $100 billion worth of mortgage- related securities sold by its Countrywide unit. The settlement included Bank of America's promise to hire additional staff to speed -up the foreclosure process for high -risk loans. If you have any concerns, please call me at (651) 675 -4464 or send me an email at drognessO.dakotacda.state.mn.us O N d C 7 (A 4) Cd N s N L tv a 'u E c O d fd G1 L (d N � C 7 c U v w L 41 S N c O u co co 0 LI.I u D 0 Ln u V N c O u N E-4 O Uv aLA s n y � c LO 0 a, — E � 2 0 v� w Q O 0 ro U- 01 i O 4J Iz Cd O ed c O f _N C L c N C O C O LL. N O CO *O M Ln Ln N M M N N N— M O Ln N Ln N Ln C Ln O� L-n 'C Ln � M O — Go O N u er Ln N > C — Z -- u Ln O -r- a — Ln co U) b4 a co %a " _ CO 00 N — — N N N O N N N 2 t Ln 3 O c &n N N N %O O M N — — N N O d' N Ln 2,0 1� H P.. 'o O% L e N N M en 00 L_ N M O N �O CO a aO h — c — N N N 00 M N !2 LL — .O Lr1 Lr1 %D � � %0 N N N 00 Ln N 0 0 =^ O L *% N 41 bo N s DO _ o > 2 c�a ° —oo V.P. 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C Ln �O O N Eu 2 o N cti U $ v l bA L. o t O 7 O ld C O • C A N _N C C N 0 E O U- Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /124359354.html Page 1 of 3 'Next wave' of mortgage fraud strikes Article by: , Star Tribune Updated: June 22, 2011 - 10:06 PM Four Twin Cities residents face racketeering charges in what Hennepin County, Attorney Michael Freeman described Wednesday as "the next wave" in mortgage fraud schemes. The first wave involved mostly subprime lenders who required little or no verification of a home buyer's financial information, enabling property "flippers" to sell homes at inflated prices to unqualified buyers who couldn't afford the mortgage payments. This time, Freeman says, the alleged frauds involve a sophisticated equity- stripping scheme that relied on forged documents -- including property records, college transcripts, pay stubs and even court records -- to qualify "straw buyers" for mortgage loans that required extensive documentation because they were guaranteed by the Federal Housing Administration (FHA). provide verbal employment verifications by at least seven non - existent companies, Freeman said at a news conference in the Hennepin County Government Center. They created a "phone tree" with a code that alerted them how to identify themselves whenever a lender called to verify a loan applicant's employment, he said, pointing to a large blow -up of the code. Freeman said the suspect transactions were complex deals that took advantage of provisions of Minnesota foreclosure law. Many of the mortgages on the involved properties are now past due, and the homes are heading for foreclosure again or to short sales, a process where the mortgage holder sells a property for less than the outstanding debt. A complaint filed Tuesday in Hennepin County District Court charges James Darrell Ober, 43, Wendy L. Ober, 41, both of Hudson, Wis.; Raul Burgos Pliego, 31, of Farmington; and Alejandro Sanchez, 32, also known as Silverio Alejandro Sanchez Cruz, 34, of Bloomington, with one count of racketeering. If convicted, they could face up to 20 years in prison and a fine of $1 million. None of the defendants has been arrested. Subpoenas were issued for the Obers and Powered By http:// www .startiibune.com/templates /fdcp ?unique= 1308836341182 6/23/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune .com/business /124359354.html �M. 21111111 Page 2 of 3 Pliego, and an arrest warrant was issued for Sanchez. None of the defendants could be reached for comment. $10 million in FHA loans Brandon Johnson, a detective with the Minnesota Department of Commerce insurance fraud division, outlined the investigation in a 23 -page complaint. It summarizes nine transactions that the defendants allegedly brokered through Franklin American Mortgage Corp. (FAMC). The defendants collected loan origination fees of $7,000 to $8,000 per transaction, and "kickbacks" on those transactions ranging from $63,000 to $157,000, for a total exceeding $840,000, the complaint says. FAMC's internal review found that in 2009 and 2010, the defendants brokered about $10 million in FHA - insured mortgage loans from the firm on 65 properties. But FAMC w asn't the only lender, the complaint says. H UD estimates that the defendants brokered a total of about $23 million in loans, which were used to buy 136 properties in the Twin Cities area and outstate Minnesota. "It's clear that the individuals behind this fraud defrauded not only HUD, but also the state of Minnesota," said Barry McLaughlin, special agent in charge of HUD's inspector general's office in Chicago, who attended the press conference in Minneapolis. Public records indicate this isn't the first time James Ober has locked horns with HUD. He previously was listed as an officer and director of Ober Financial Corp. in Vacaville, Calif., which did business under the name Combined Mortgage. In September 1999, HUD terminated its origination approval agreement, citing excessive default rates. A California firm by that name now operates as a financial advisory business, but a company spokesman, Ed Ober, said Wednesday that it has "no relationship whatsoever" to James Ober. According to the Minnesota Department of Commerce, James Ober holds a non- resident real estate broker's license but Wendy Ober has none. The department says in an administrative complaint filed Tuesday that the Obers owned and operated Mortgage Planners Inc., a licensed mortgage originator in St. Paul, through which they did most of the suspect property transactions. Pliego and Sanchez were loan officers at Mortgage Planners, the department says. Print Powered By ;_ "P``'IDyna " http:// www .startribune.com/templates /fdcp ?unique= 1308836341182 6/23/2011 Format Dynamics:: C1eanPrint :: http:// www. startribune .com/business /124359354.html 19 19 1 $1! 11 Page 3 of 3 Commerce alleges that the Obers arranged to have straw buyers purchase properties in which the Obers had a hidden interest via fictitious second mortgages in favor of one of three companies they owned: Accredited Financial Inc., a Wyoming company; Eagle River Financial, a Wisconsin firm; or OFC Properties, which holds a Minnesota license as a master plumber, mechanical contractor and residential builder. Although the allegations in the administrative complaint mirror the criminal c omplaint, it's somewhat broader, naming additional parties who allegedly helped facilitate the transactions. Phony transcripts The criminal complaint says to obtain loans for the straw buyers, one or more of the defendants allegedly submitted phony college transcripts that would justify why the straw buyers supposedly got large salary increases before they applied for loans. It says they also allegedly submitted fraudulent divorce records from Hennepin, Ramsey, Anoka, Dakota and Rice counties. The bogus divorce decrees contained signatures of fictitious judges and the forged signatures of some sitting judges, effectively stealing their identities, the complaint says. The divorce papers were needed so that certain straw buyers would qualify for mortgages as first -time home buyers, the complaint says. Dan Browning • 612 - 673 -4493 Print Powered http:// www .startTibune.com/templates /fdcp ?unique= 1308836341182 6/23/2011 Format Dynamics:: CP Viewer Page 1 of 2 Bank of America settlement could speed foreclosures Investor settlement includes promise to outsource 'high risk' mortgages investors. As a result the settlement includes a promise By John W. SChoensenior producer to hire additional "subservicers" to speed up the foreclosure process for high -risk loans. msnbc.com That means Bank of America borrowers updated 6/29/2011 4:55:48 PM ET Investors who bought bonds backed by shaky loans scored a major victory Wednesday with the announcement that Bank of America will pay more than $8 billion to snake up for some of their losses. Homeowners on the other end of those shaky mortgages — especially those most at risk of foreclosure — may have less to cheer about. In the largest settlement to date related to the rogue mortgage lending wave, Bank of America said Wednesday it would pay $8.5 billion to settle claims with investors holding about $100 billion worth of mortgage- related securities sold by its Countrywide unit. The winners include 22 large investors such as Pimco, Metropolitan Life and BlackRock, as well as the Federal Reserve Bank of New York. Aside from their claims that Countrywide sold them bonds backed by faulty loans, the investors argued that by continuing to service bad loans rather than speeding up foreclosures, the Bank of America unit ran up servicing fees, profiting at the expense of whose foreclosure have been on hold may now see the process accelerated. "Living with the uncertainty of foreclosure can' t be a pleasant experience," said Bank of America spokesman Jerry Dubrowski. "The sooner we can deal with that overhang the better for the economy." Bank of America also faces considerable uncertainty as it continues to try put its mortgage woes behind it. While the bank said its settlement would resolve "nearly all" its exposure related to mortgages issued by Countrywide, only holders of about a quarter of the securities have agreed to support the deal. Hundreds of investors holding an additional $300 billion worth of securities have yet to agree to the settlement, which also is subject to court approval. There are no guarantees that the remaining investors will go along. "It is not possible to predict whether and to what extent challenges will be made to the settlement or the timing or ultimate outcome of the court approval process," Bank of Powered By http:// www. msnbc. msn. com lcleanprintICleanPrintProxy.aspx ?unique= 1309451853968 6/30/2011 Format Dynamics:: CP Viewer Page 2 of 2 t America said in its press release announcing the settlement. are lost to foreclosure and how much further home prices fall. Story: BofA to pay SUB housing crash settlement At the height of the boom, rising home prices allowed mortgage originators to replace failed loans with freshly written performing mortgages. Lenders, investors and borrowers all assumed that there was little risk in churning out new mortgages — even if they were based on flawed information — because even if a loan defaulted, the rising value of the home securing it would minimize any potential losses. But when home prices began falling, many of those bad loans came back to haunt the companies that had underwritten them. With demand for new mortgages drying up, there weren't enough new loans to replace the ones that were going bad. Now investors holding bad mortgages are demanding that lenders buy theirs back. Those investors include government - controlled lending giants Fannie Mae and Freddie Mac. In January, Bank of America paid $2.8 billion to Freddie and Fannie to buy back mortgages. Bank of America concede in its press release Wednesday that that it "is not currently able to reasonably estimate" how much more it may have to pay to the two entities for losses on mortgage investments. It's also still not clear just how big the mounting losses on mortgage investments will be. With home prices still falling and mortgage defaults rates high , losses on foreclosed homes are hitting even those investors holding top -rated bonds. The ultimate cost of the claims will depend on how many more homes Bank of America also faces a potentially large payout to all or some of the 50 state attorneys general, who have been investigating abuses by the biggest mortgage servicers. The state officials are pressing the largest banks, including Bank of America, to pay up to $30 billion in fines and penalties. If a unified settlement can't be reached, Bank of America could face multiple legal challenges from states that decide to pursue claims on their own. C 2011 msnbc.com Kcprinlr http:// www. msnbc. msn. com /cleanprint/CleanPtintProxy.aspx ?unique= 1309451853968 6/30/2011 Format Dynamics:: CleanPrint :: http: / /www.startribune .com/business /124038769.htm1 �Irtl gig 1�1!11L i Page 1 of 2 Wells Fargo Home Mortgages halts making reverse mortgages, cites 'unpredictable' home values Article by: Associated Press Updated: June 16, 2011 - 6:12 PM DES MOINES, Iowa - Wells Fargo Home Mortgage said Thursday that it will no longer make so- called reverse mortgage loans, citing unpredictable home values and restrictions that make it difficult to determine if borrowers can afford homeowners' insurance and other financial obligations. Reverse mortgages are typically sold to people over age 62 who want to access the equity in their homes for personal expenses, such as medical bills. But unlike home equity loans, reverse mortgages don't have to be repaid until the homeowner sells the property or passes away. However, the housing downturn has made it harder for banks to gauge the trajectory of home values, and thus how much they should loan. Foreclosures have contributed to falling home prices, often vaporizing the amount of equity that borrowers have in their home. In addition, reverse mortgages aren't subject to the same types of tests as traditional loans. Eligibility is determined by an FHA formula that calculates age and the home's appraised value. Seniors aren't subject to the same types of income and credit score restrictions that protect banks making traditional loans. Wells Fargo said that makes it difficult to figure out if seniors are able to afford property tax and homeowners' insurance payments. Wells Fargo began originating reverse mortgages in 1990. As of last year, the funded volume of its reverse mortgage business was about 2.2 percent of all its retail mortgage volume and 1.2 percent of overall mortgage volume. The lender said it will stop taking new applications for reverse mortgages after June 30, but will continue to service the loans of its existing reverse mortgage customers. The 1,000 workers in the bank's reverse mortgage division will be given opportunities to apply for other jobs at Wells Fargo. http:// www .startribune.com/templates /fdcp ?unique = 1308323571526 6/17/2011 �Ip |n February, Bank Of America also announced that it would exit the reverse mortgage origination business. Wells Fargo Home Mortgage kea unit ofSan Franc bank Wells Fargo &Co. Shares rose 25 cents to close earlier at $26.80. http 6/17/2011 Format Dynamics :: C1eanPrint :: http: / /www.startribune .com/business /124044984.html StarTribune Page 1 of 2 Minnesota's May foreclosure filings drop Article by: , Star Tribune Updated: June 16, 2011 - 8:48 PM Delays in processing foreclosures helped significantly reduce the number of families that received mortgage default notices both in Minnesota and across the country last month, according to data by RealtyTrac. The group said that in Minnesota 2,813 properties were the subject of a foreclosure filing in May; that's one for every 829 households. That was a 6.3 percent increase from April and an 11.2 percent decline from May 2010. Julie Gugin, executive director of the Minnesota Homeownership Center, said that given the improving jobs situation in the state a year ago -- unemployment tends to be the biggest factor in whether a homeowner can make their mortgage payment -- she wasn't surprised to see a decline in filings from May 2010. Nationwide the overall foreclosure rate fell 33 percent from a year ago, with one in foreclosure notice. That was a 1.9 percent decline from April. Default notices, the first step in the foreclosure process and an indicator of future foreclosure activity, fell 39 percent compared with last year to their lowest level since December 2006. On the surface the declines seem like good news for the long- suffering housing market, but they mask general turmoil among lenders trying to navigate the complicated task of processing defaults. James Saccacio, chief executive at RealtyTrac, said lenders are "unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory." Minnesota housing advocates say that intense efforts to help homeowners avoid foreclosure through loan modifications and other proactive efforts have helped keep foreclosure rates from continuing to rise. In Minnesota those efforts are being driven by members of the Minnesota Foreclosure Print Powered 1 http:// www .startlibune.com/templates /fdcp ?unique= 1308323399651 6/17/2011 Format Dynamics :: CleanPrint :: http:// www. startribune .com /business /124044984.html Page 2 of 2 Krt I i I g I $ I! I I L71 Partners Council, which recently announced that they'd help prevent 25,000 foreclosures since 2007. Just last week, NeighborWorks America announced that Minnesota received more than $3 million -- the third - biggest award nationwide -- to help fund foreclosure counseling prevention efforts as part of its latest round of funding to Minnesota Housing Finance Agency. During four previous rounds of funding, Minnesota received more than $10 million. Gugin said that reports she's getting from foreclosure counselors around the state suggests that overall foreclosure rates in Minnesota are likely to be somewhat lower than 2010. "Some of the bad predatory lending stuff is over," she said. "Now we're just looking at unemployment and underemployment as a major factor." Jim Buchta • 612 - 673 -7376 Print Powered B I AV Ffo rr _�3 - D http: // www. startribune .com /templates /fdcp ?unique= 1308323399651 6/17/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune.com /local /north/125317153.html... Page 1 of 4 � nt A=, Continued: Cities aim lower, leaving behind dreams of utopia Article by: , Star Tribune Last update: July 11, 2011 - 9:22 AM Blaine had big plans for an old cement plant long before the operation finally shut down. The plant sits on a high - profile corner near Laddie Lake that had been seen as something of a gateway to the Anoka County suburb. City officials had visions of filling the 5 -acre spot with offices topped with apartments, a restaurant, maybe a medical facility. The grand plan now? A Kwik Trip. "While we were talking about maximizing opportunities, in walks one and we have to deal with it," said Bryan Schafer, Blaine's community development director. "We need something to happen on the corner." For many Twin Cities' communities, lofty planning visions and harsh market realties have collided in the wake of the Great Recession. No one wants to say they are lowering aspirations, but compromises are emerging for redevelopment projects throughout the metro area. Condo projects have become apartments. Plans for dynamic, multi -use developments where people would live, work, eat and shop are in limbo. Instead of walkable shops, a big -box retailer may have to suffice. For some, even a major retailer seems out of reach. It's all part of figuring out what development will be in a post- recession world, said John Shardlow, a principal at Roseville -based planner Bonestroo Inc. "Cities have just kind of been hunkered down and it's only now, very recently, that some of the cities are finally saying, 'You know, we haven't seen our development fees,' or '[Our] tax base isn't growing. Maybe we really need to start thinking about our standards, "' Shardlow said. "It's just slowly sinking in for everybody." Shifting expectations Take Apple Valley. The south metro suburb said it's going to wait and stay true to its vision for Central Village, a 60 -acre "new urbanist" housing - retail- restaurant project that's only partially built. One resident calls Advertisement P Powered 's http: / /www.startribune.com/ templates /fdcp ?unique= 1310408671641 07/11/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune.com /local /north/125317153.html i1 � Page 2 of 4 the empty fields and roads "post apocalyptic." Instead of the dense downtown -like vision with condos above stores or offices, the city may have to consider a more traditional suburban layout with apartments, its community development director said. Whatever the size and scope of the project, cities will have to be more flexible and creative now, said Jon Rausch, an executive in NorthMarq's land division. "They all went to the same city planning school and had utopia in mind," Rausch said. "Utopia's not working anymore." Eagan, too, is shifting a few expectations for the Cedar Grove redevelopment, the core of which is a 65 -acre transit - oriented urban village -type project at Cedar Avenue and Highway 13. It's considering apartments now instead of condos. Vertical is probably out. It didn't want a standard suburban shopping center with a big box retailer, but it's now signaling a willingness to consider all options, said Jon Hohenstein, that city's community development director. James McCaffrey, an executive at Cassidy Turley which is marketing the site, applauds Eagan for casting a broader net. "You have to be flexible because it may be 10 years before what you ideally wanted becomes even quasi - reality again," McCaffrey said. Accepting smaller fish Brooklyn Park, by contrast, originally wanted a big box first to anchor a major shopping and office area envisioned for 58 acres at Highway 610 and Zane Avenue. After plans f or a Wal -Mart there fell through years ago, TCF Financial Corp. took the site back from the developer. Now the approach to the site, being marketed as "610 Crossings," has flip flopped. The plan is to work with smaller retailers and other components of the site around its edges and hope that generates momentum to land the bigger fish later, said Robert Schreier, director of community development. It too is talking to Kwik Trip about putting a gas station - convenience store on the edge of the bank -owned land. "Now, because everything is turned upside down, you're almost starting with the satellite pads before you get your big box or large grocery or home center like a Lowe's," Schreier said. Advertisement Print P owered By http: / /www.startiibune.com /templates /fdcp ?unique= 1310408671641 07/11/2011 Format Dynamics :: C1eanPrint :: http: / /www.startribune.com /local /north/125317153.html... Page 3 of 4 M r Hopkins had plans for redeveloping a stretch of 8th Avenue S. after Park Nicollet closed a clinic there. Developers pitched plans. But instead of choosing the larger, complex project with retail, a greenway and a market plaza, the city opted for a smaller, straightforward apartment project because it was more feasible. "I think it was maybe more reality- driven, and who could in their minds get the financing for the project," said Kersten Elverum, Hopkins' director of planning and development of the decision. The pressures worry some local planning experts who say they want cities to hold out for complex projects with multiple uses which, in theory, adapt better to changing times. "I'm seriously concerned," said Caren Dewar, head of the Urban Land Institute in Minnesota. "Given that there hasn't been much going on, it's going to be a compelling choice for cities to take projects that are more straightforward, easier to finance and quicker to get done." Dewar's group is trying to create some new tools for cities and developers to use, such as expanding the uses of tax- increment- finance (TIF) districts to help subsidize more developments with the extra property taxes the projects generate. Cities don't always have much choice. The Cemstone company, for instance, owns the 5 -acre site in Blaine where its old plant sits at 85th Avenue Northeast and Highway 65. Cement trucks used to rumble in and out but after the housing crash, demand slowed. The Mendota Heights -based company shuttered the plant three years ago and put a For Sale sign out for about $2 million. Kwik Trip has signed a purchase agreement for 3 of the acres; the sale is expected to close by August, according to Gemstone. A 'Kwik' fix Blaine can't afford to buy the land and wait for the market to change, said council member Dick Swanson. So it's compromising. The Kwik Trip will help fix a messy intersection and clean up an eyesore -- a conveyor runs over the street like a skyway to the empty silos. "In and of itself that's a huge stroke forward because nobody can do development there until that happens," Schafer said. Advertisement s e i w http: / /www.startribune.com /templates /fdcp ?unique = 1310408671641 07/11/2011 Format Dynamics:: C1eanPrint :: http: / /www.startribune.com /local /north/l25317153.htm1... Page 4 of 4 i For Kwik Trip, the dearth of development has been good news. The family -owned chain of gas station convenience stores is getting a lift from depressed land prices and a new -found appreciation for its stores. "Cities are willing to at least talk, and consider gas and convenience on sites that during the boom days they probably wouldn't have," said Kwik Trip CFO Scott Teigen. "It's certainly opening up more good corners." The La Crosse, Wis. -based company plans to open about 10 new stores in the metro area by the end of 2012. Blaine, meanwhile, has warmed to the plan. The neighborhood does need a gas station, conceded council member Swanson: "It wasn't what we had hoped for, but there are benefits coming out of it." Jennifer Bjorhus • 612 - 673 -4683 Advertisement Print Powered By ' "' " r " - C yramic http: / /www.startribune.com /templates /fdcp ?unique= 1310408671641 07/11/2011 Format pynamics :: C1eanPrint :: http: / /www.startribme.com /business /... �i - V • 19 11 o I I M �� [ http://www.startribune.com/templates/fdcp?unique=1311609371215 Solar player Despatch Industries changes hands Article by: , nstanthony @astartribune.com Updated: July 22, 2011 - 9:15 PM A 109 - year -old Minnesota company that once made heaters for Twin Cities streetcars will soon be acquired for its hot - performing products in the global solar energy industry. Illinois Tool Works, a publicly held industrial manufacturer, is expected to officially announce Monday that it will acquire Despatch Industries of Lakeville, a manufacturer of high -tech ovens used for making solar cells. Most of Despatch's ovens are bought by companies in China and Europe. Privately held Despatch, which has annual sales of about $200 million, has caught fire since 2007 thanks largely to fast - growing solar -cell manufacturing markets. Despatch has more than doubled its Minnesota employment to 400 over the last three years. Terms of the deal are not expected to be disclosed. Illinois Tool Works had 2010 revenue of $15.9 billion and earnings of $1.5 billion. In an interview Friday, Despatch CEO Patrick Peyton said Despatch is Illinois Tool's entryway to the "clean tech" arena and that Despatch will be the foundation for what's expected to be a $1 billion company within several years through organic growth and otherwise. Despatch was born in northeast Minneapolis in 1902 as a maker of heaters for Twin City Lines streetcars, evolving to a maker of thermal ovens for the manufacture of semiconductors. "They want to bolt on additional acquisitions and grow us and leverage our brand and market space," Peyton said. "Despatch's strong market presence and proven technology, coupled with ITW s global breadth and [financial] strength, will facilitate expansion of technology advancements and next - generation tools." Strong recovery As recently as 2003, Despatch was struggling with layoffs and revenue dipping below $75 million. In the aftermath of the Advertisement Print P owered By D 1 of 3 7/25/2011 10:56 AM Format Dynamics :: CleanPrint :: http:// www .startribune.com/business /... I http://www.startribune.com/templates/fdcp?unique= 13 116 093 71215 technology- company bust in 2001 -02, Despatch was selling fewer high -test curing ovens to the pharmaceutical and semiconductor industries. The company had sold its flagship northeast Minneapolis plant and shuttered a California plant in order to consolidate in the newer, larger Lakeville facility. Peyton and his engineers saw the solar industry beginning to take off in Europe and China, which is the global leader in the manufacture of photovoltaic cells for domestic consumption and export. Despatch exports about 75 percent of its products. The company also makes ovens for the carbon -fiber industry, which makes I ightweight, super- strong skins for the aviation and auto industries. The design, engineering and manufacturing is done in Minnesota to protect Despatch's intellectual property. Peyton also has credited Despatch's manufacturing workers with producing the highest- quality ovens in the world. The company has sold several hundred solar -cell thermal ovens at prices that can top $1 million apiece to Chinese, European and American customers. The deal with Illinois Tool Works closed Friday afternoon, and Peyton addressed his employees shortly thereafter. ITW is expected to officially announce the acquisition just before its quarterly earnings release Monday morning. "We are excited about this acquisition [because Despatch's] core thermal technology aligns well with certain of our other existing electronics equipment businesses," Steve Martindale, an ITW executive vice president, said in a statement. "As a leader in thermal processing, Despatch provides us with immediate access to attractive and high growth industries such as solar and carbon fiber as well as the opportunity to extend sales of certain of our existing products into these new markets." Despatch was acquired in 2007 from its founding family by a partnership led by insurance broker Jim Hays, CEO of Hays Cos., and Peyton. The pair own the majority of Despatch's shares. Peyton and his management team plan to remain in place. This is the second time in recent months that ITW has made headlines in Minnesota. In April, Illinois Tool announced that it was selling its industrial coatings business for Advertisement Print Powered By 2 of 3 7/25/2011 10:56 AM Format Dynamics:: C1eanPrint :: http:// www.startribune.com/business /.. Kr I g I g 1 http:// www .startribune.com/templates /fdcp ?unique= 13116093 71215 $650 million to Graco Inc., the Minneapolis- based maker of pumps and spraying equipment. Analysts polled by Thomson Financial expect ITW to earn about $3.95 per share this year on revenue of about $16.5 billion. Its stock closed Friday at $56.97, up a penny. Neal St. Anthony • 612 - 673 -7144 Advertisement of 3 7/25/2011 10:56 AM Page 1 of 2 From: NorthMarq Real Estate Services [info @northmarq.com] Sent: Wednesday, July 27, 2011 8:45 AM To: Olson, David Subject: NorthMarq Compass Report - July 2011 edition now available The July 2011 edition of NorthMarq's Compass report is now available online Visit the web site: www.northmarcicompass.com NorthMarq Compass Highlights from the report This report provides exclusive The commercial real estate market in the Minneapolis -St. Paul market research and insight on metro area is showing signs of measured optimism across all commercial real estate in the property types. While fundamentals have improved, a full Twin Cities. recovery will likely take another three to four years. Vacancy rates have declined slightly as activity levels have picked up, and most office, industrial and retail properties saw modest absorption in the first half of the year. Multi- family properties are experiencing renewed interest from investors as vacancies in apartments drop to five -year lows. More capital has become available for real estate investments, and the expectation gap between buyers and sellers has continued to narrow, spurring investor demand for the highest - quality assets. New to this edition of the report is a section covering Hotels in the metro area. The hospitality industry has seen a rebound, and occupancy in Twin Cities hotels is above the national average. More highlights from the report include: • Office Solid first half as increased activity levels bring 324,000 sq. ft. of positive absorption • Medical Office Measured activity continues with 119,000 sq. ft. of positive absorption • Industrial Showing signs of stabilizing as absorption turns positive, vacancy ticks down to 16.9% • Land Muted transaction volume, but hints of a warming trend • Retail Vacancy rate drops to 8.8% as leasing activity returns • Hotels Rebounding after recession, reporting stronger The web site provides complete submarket information, including charts and graphs not available in the printed report. The site requires all users to create an account to access our market research. If you've already created an account, use the login fields on the home page to access the report. If you've forgotten your login or password, use the link on the home page to receive a reminder. 07/27/2011 Page 2 of 2 rates and bookings • Multi - Familv Historically low vacancies, strong demand ignites new development • Investment and Capital Markets Investor interest heating up, underwriting is aggressive for highest - quality assets On the Horizon While year -end projections include an additional 2 million square feet of positive absorption, it's important to note that the flow of transactions for 2012 is unlikely to match the levels seen in 2011. This year we are benefiting from some pent -up demand that delayed real estate decisions over the past few years. Activity in 2012 will likely mirror the economic growth we experience, which is projected to be positive but modest. Tell us what you think In continually changing market conditions, access to insightful research helps you chart strategy, solve problems and seize market opportunities. We are continually working to improve the report for the benefit of our readers. If you have any questions or feedback about this publication or how we can make it more valuable for you, please let us know. You can email us at info(cD- north marg. com or call us at 952 - 831 -1000. Brokerage Services Forward email r�Safetkrwbs This email was sent to dolson @ci.lakeville.mn.us by info( northmaro.com 1 Update Profile /Email Address I Instant removal with SafeUnsubscribe I Privacy Policy NorthMarq Real Estate Services 13500 W. American Boulevard I Suite 200 1 Minneapolis I MN 1 55306 07/27/2011 OGANDERMTNO ESt1960 WE LIVE OUTDOORS Media Contact: David Ewald Direct: 651 -290 -6276 Cell: 612- 490 -2650 City of Lakeville honors Gander Mountain for business growth "Spotlight on Business" award given to Minnesota's first Gander Mtn. Academy ST. PAUL, MN, August 18, 2011 - -- Officials from the City of Lakeville recently recognized Gander Mountain for business growth in the community, presenting the monthly Spotlight on Business award, and honoring the facility at a city council meeting. Members of the city council as well as officials from the city's public safety departments were on hand for the presentation, and reviewed a video highlighting the new opportunities that Gander Mtn. Academy is bringing to the community. "The City of Lakeville is extremely pleased and excited that Gander Mountain selected Lakeville for a major remodeling and the development of the first Gander Mtn. Academy in Minnesota," said David Olson, Lakeville's community and economic development director. "These changes have made the Lakeville Gander Mountain a premier outdoor retail store destination. The city also looks forward to the training opportunities that will be available for our public safety personnel in the new state -of- the -art academy. " The 86,000 square -foot Gander Mountain store in Lakeville first opened in 2003 and recently underwent a major remodel which included the new prototype store design. It features greatly enhanced interior design elements, innovative displays and fixtures, and a broader selection of apparel and merchandise, offering customers an improved shopping experience. The store celebrated its grand re- opening in early August. Included in the renovation is the state's first Gander Mtn. Academy, which is the nation's first civilian training facility to offer highly skilled instructors, a variety of comprehensive courses, modern multi -media classrooms, a live -fire range, and exclusive virtual simulation technology previously available only to military and law enforcement agencies. Speaking before the city council, Lakeville police chief Thom Vonhoff called Gander Mtn. Academy "remarkable" and added that they are currently working on a partnership to encourage police officers to receive public safety training at the academy going forward. Chris Juelich, the director of Gander Mtn. Academy, and Billy Hieb, the manager of the Lakeville academy, spoke at the meeting and answered numerous questions from city council members about what's featured at the academy and what the business will mean for the community. "We have been blessed to have a true partner in the City of Lakeville as we worked to develop the remodeled Gander Mountain store and the state's first Gander Mtn. Academy, and it means a great deal for us to be a part of such a receptive and welcoming community," said Juelich. "To be recognized by the city for our business growth is a great honor for the men and women who staff this store and the academy." The 10,000 square -foot Lakeville facility is among several Gander Mtn. Academy locations opening this year. Locations in Lake Mary, FL, Onalaska, WI, and DeForest, WI, all opened for business in recent months. Academies are currently in development in Wichita, KS, and Spring, TX, with additional sites to be announced. About Gander Mountain Company Gander Mountain Company headquartered in St. Paul, MN, is the nation's largest retail network of outdoor specialty stores for hunting, fishing, camping, marine and outdoor lifestyle products and services. Since 1960, the Gander Mountain brand has offered an expanding assortment of competitively priced outdoor equipment, technical apparel, rugged casual wear and footwear featuring national, regional and specialty brands as well as the company's owned brands. Focused on a "We Live Outdoors ® " culture, Gander Mountain dedicates itself to creating outdoor memories. There are currently 116 conveniently located Gander Mountain outdoor lifestyle stores in 23 states. For the nearest store location call 800 - 282 -5993 or visit www.GanderMountain.com Gander Mountain is also the parent company of Overton's ( www.overtons.com ) a leading catalog and Internet based retailer of products for boating and other water sports enthusiasts. E; a: CD G o.Fy w d c o w a �3 CD r °� c o c co z t j w o N '� O > C➢ o a x< - ° � °�or�� °N, CD c o w o c Q- �� n O � ° o o m ~• �/i UR O p' O G F W G O° �W ° C Q O w ry G''L1 „7 j p .."� ,Y 'O '� (D '� O•' rr .r CD O CD q M O a CD O• N r O 0 n 0 1• cw Cl. 0 CL o. A .C 8 p o a C� ° cD ID Q o �� o c ° °,a w b g �rJR Zr Cv rn CD G O c w q G f9 G CL w a O N C7-• � a' G �• CL � Uq O ;q .'3 U � n �. g c n t � �W a° G CD 0 r't PD `G C y C c CD 0 , INA CD 0 ro o ��, b e o' ° orq a. yob <. �"� JCL �n a.o a °,o CD PO a �~ O n p W G.- O I'D aq r-- r a.� O iw--• O Co S :•r ti C) ¢- O w N b C v p rD S i r CD `C w `C F N �'. 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