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HomeMy WebLinkAbout10.27.14 EDA PacketAGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING October 27, 2014 6:30 PM Room 170 Todd Larson, Chair; Geraldine Jolley, Vice -Chair Douglas Bonar, Steve Wilson, Kirk Zeaman 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Meeting Minutes (9/22/14 Regular Meeting) (b) Monthly Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) TIF Policy Discussion (b) Marketing Plan Update 9. DIRECTOR'S REPORT (a) October Director's Report 10. ADJOURN MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting September 22, 2014 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Jolley, Wilson, Zeaman, Bonar Members Absent: None Also Present: Adam Kienberger, Community Development Director, Mike Slavik, Dakota County Commissioner, Tim Pitcher, Council Candidate 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Jolley, second by Bonar to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Wilson, second by Jolley to approve the Consent Agenda as follows: a) Approved Meeting Minutes — August 25, 2014. b) Monthly Statements (August). APIF, MOTION CARRIED. 7. DISCUSSION ITEMS a) Dakota County Tax Increment Financing Policy — Director Kienberger reviewed with the EDA the current draft of the Dakota County TIF policy. Several cities are concerned with the County's position on economic development TIF as it is typically the city's primary tool that can be used for business growth and expansion. Dakota County Commissioner Slavik commented that TIF is an easier sell than abatements. He also noted that this position is not new for Dakota County and that they will be discussing ways they can take a more productive role in economic development as a part of their strategic plan. The EDA discussed that while the County does not have the authority to deny the creation of a new city TIF district, the perception that there is not a unified effort to support economic development at the local level sends a negative message to the region. The EDA reviewed the policy and discussion centered on the ramifications of not having incentives for businesses to locate in Dakota County. EDA Minutes (Regular) September 22, 2014 Page 2 b) CDBG Municipal Subrecipient Agreement — Director Kienberger referenced the memo from Dakota County Community Development Agency (CDA) regarding CDBG funds for the 2014 program year (July 1, 2014 — June 30, 2015). He is requesting recommendation from the EDA to approve Administrator McKnight sign the agreement in order to expend its 2014 funds. MOTION by Wilson second by Bonar to approve the signing of the Time of Performance Amendment by City Administrator McKnight. APIF, MOTION CARRIED. c) Marketing Plan Update — Director Kienberger updated the EDA on the activities since the last meeting. 8. DIRECTOR'S REPORT — September Report — Director Kienberger updated the EDA on the following: • Farmington Gymnastics had a ribbon cutting and opened this past weekend • Dakota County Lumber has completed their expansion and is having a ribbon cutting on September 27, 2014. • Valmont's expansion is progressing • Farmington Mini Storage has two new buildings under construction. 9. ADJOURN MOTION by Wilson, second by Bonar to adjourn at 8:25 p.m. APIF, MOTION CARRIED. Respectfully submitted, Sue Miller Administrative Assistant City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Meeting Minutes (9/22/14 Regular Meeting) DATE: October 27, 2014 INTRODUCTION/DISCUSSION ACTION REQUESTED ATTACHMENTS: Type o Backup Material Description Meeting Minutes - 9 -22 -14 Regular Meeting City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Statements DATE: October 27, 2014 INTRODUCTION/DISCUSSION Please find attached the monthly EDA statements from September, 2014. ACTION REQUESTED ATTACHMENTS: Type o Cover Memo Description EDA Monthly Statements W (-0 CD O ( N 0 F9. N $186,227 $187,452 $185,742 $ 188,880 $ 177,258 $ 195,198 $ 210,199 $ 213,111 $ 216,042 $ 219,005 $ 219,005 $ 219,005 ON M N(+) CO 00 V c4') (h 0 (0 M 0 M M M M C4 I- NM M C7 N M C) NM ((0 M M M M rd 00 00000 00 0 00 1- CO ODD c0 r M VN 00 a 66 V N 1- u ° N 0 N 004- 10Oaafa000 (0 00 Oa M (OIhM N a 0 W V 0 M 0 .0 t-4-04-...0 $ 9,841 $ 28,629 N 0 z O 8 W 0 M Q M M r 8 N n 8 M N to N M T 6, C 0 W LL O C M .7 V O N 0 0 N N � 2°' N 00 4- M OMNI- N v-04 aO —M r- 0�(00000') N O M V0^ N (0 0 N 00 000 00 OM • n 00 N ECONOMIC DEVELOPMENT AUTHORITY 00 Fund Balance 0o 0 00 fV Ov 0 o▪ f 0V N = g d 6,,r t'8 E c tHggg • d N0• 00(0 V V V 0 0 (0 v C 0 W 00'00�0000�(0- 00 0 )0 t00 Q 0 0 0) N N 4-010 4_4(0'4» N 60 M w r 4, 42,013 1 $ 2,440 $ 69 (0 O 0 0) N O 0) O 0) N 0) N CV CO Fund Balance Revenue and Expenditure Descriptions w _ G > d a w � Q'y = 0 '1 a 817t°6 0 m�p�yC���rn fO JL W (0 -2 0O N N N M N 0 gggggg 10/23/201410:19:56 CITY OF FARMINGTON O O N 0 O J N U LC) 0) a Council Check Summary Note: Check Amount may not reflect actaul check total due to sequence of data 9/18/2014 - Co Dept Div BU Description Subledger Account Description O Z U 0 0 Supplier / Explanation HRA/ECONOMIC DEVELOPMENT 02000 03 MILEAGE REIMBURSEMENT HRA/ECONOMIC DEVELOPMENT 02000 03 TRAINING & SUBSISTANCE LO 0 CO • v CO CO o o o o N N SEPT 10 -24 EXP 121.46 SEPT 10 -24 MILEAG,MTG EXP REIM co re m m W K SEPT 10 -24 EXP 6.00 EDAM CONFR PRKG 100253 CAMPBELL KNUTSON 129905 10/24/2014 HRA/ECONOMIC DEVELOPMENT 02000 03 -J 0 07 W J 132309 1652G -000 SEPT14 2000 6403 45.00 SEPT'14 EDA LEGAL SRV, NON -RET 0 0 4) CARDMEMBER SERVICES CO N 0 20140929 9/29/2014 HRA/ECONOMIC DEVELOPMENT 02000 03 SUBSCRIPTIONS & DUES 0 CO CD 0 O N 4798...1668 O M 150.00 8/19 VISA, MNCAR EXCHG -EDAM AP SEPT14 VISA 0 0 N to [V TO: FROM: SUBJECT: DATE: City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Economic Development Authority Adam Kienberger, Community Development Director TIF Policy Discussion October 27, 2014 INTRODUCTION/DISCUSSION Part of being proactive in economic development is having policies and procedures in place to address common questions often asked early in the site selection process. These questions often start out as: • "What does the City think about..." • "Would the City like to see this type of..." • "What types of incentives are available for my business..." • "How do I get TIF..." After a bit of research it would appear that the EDA discussed updating its Business Subsidy Policy in the form of a Business Incentive Grant Program back in May of 2013. That idea was ultimately shelved in order to focus on the now completed Marketing Plan. I recently met with a local developer who is considering a small apartment project in Farmington. The question of TIF came up as a way to make the financing work for the development. We discussed various programs and financing options, but noted that the EDA would have to weigh in on the availability of TIF. The City does not currently have a TIF policy, and currently relies on a basic business subsidy policy my research shows dates back to 2002. Part of our overall strategy should be having answers prepared for many of these commonly asked questions. This is a multi - pronged approach and includes ways we can address these questions through regulation, policy, and relationships. I would like to discuss some of these ideas with the EDA at our meeting. As a reference, I have included a sample site request. I often receive these email blasts because of our MNCAR membership. This example helps paint a real world picture of what businesses are currently looking for and where /why they are looking to locate. ACTION REQUESTED None, this discussion item is meant to start the conversation on how to utilize TIF and other tools to promote proactive economic development in Farmington. ATTACHMENTS: Type ❑ Cover Memo Description Sample Site Request Adam Kienberper From: 11=3=111111"1111".1.1". Sent: Wednesday, October 22, 2014 6:32 AM To: Adam Kienberger Subject: CDXMaiI: Need, Industrial, Lease _ Well Capitalized Brewery Ready to Go I am working with a well capitalized brewery group looking for the following lease criteria: Location: Within 10 miles of either Downtown core Size: 8,000 - 20,000 sf Clear Height- MINIMUM 15' Loading: Drive -in or loading dock or ability to create Price: Up to $14.00 Net Other: This group prefers to be in a building that has some kind of redeeming architectural character (brick, timber, steel trusses etc) Timing: ASAP Outdoor Seating: This is not a must but preferred Other: Client would prefer to lease with an option to purchase. They will look at straight purchase if needed. You are receiving this email based on your CDXMalP" account preferences. To update your preferences or get more Information, click the appropriate Zink below. Unsubscribe From CDXMaiI" 1 Block Sender 1 www.xceligent.corrt Powered eyr )(e4Iigc,nt, CDXMaiI'" Is an Xceligent product. The Information Included In this email has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified It and make no guarantee, warranty, or representation about It. It Is your responsibility to Independently confirm its accuracy. 1 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Marketing Plan Update DATE: October 27, 2014 INTRODUCTION/DISCUSSION As noted at our monthly meetings, below is an update on the status of several components of the Marketing Plan. Also included is a schedule of activities identified to be completed over the next several months. There were four primary goals included in that Plan: 1. Deepen relationships with Farmington business owners through an aggressive Business Retention and Expansion (BR &E) program. 2. Get closer to land owner /developers in order to be better prepared for industrial development in the City. 3. Get connected to site selectors and business owners who conduct site searches in the area. 4. Get smarter about the industry through active participation in industry associations like Economic Development Association of Minnesota (EDAM) and Minnesota Commercial Association of Realtors (MNCAR). Below is an update on a few key initiatives underway: • BR &E Subcommittee — The BR &E Subcommittee consisting of Mayor Larson, Jeri Jolley, and myself met to discuss the EDA's BR &E strategy. Several businesses were identified for priority visits and are currently being scheduled. So far none of the identified businesses have responded, but a separate business visit has been scheduled for October 28th. The Subcommittee will continue to meet as needed to assess BR &E activities and key takeaways. • Grant Opportunities — Staff is exploring the CDA's Redevelopment Incentive Grant (RIG) program criteria and will be recommending an application for a B -2 Downtown Business District Planning Study later this year. We are also working with our financial advisor and bond counsel to identify potential TIF funds that could be utilized to partially fund the study. This effort will likely involve the EDA, Planning Commission, and Heritage Preservation Commission. City Council expressed initial support of this study at their 10/13 Work Session. The following is an outline of activities to be completed over the next several months: October • Establish key messages — Nemer Fieger o Met with Tom Whelan — 9/10/14 o Begin to develop collateral utilizing key messages • "Under Development" concept • Seek additional input on messaging and draft print collateral • MNCAR Expo — 10/29/14 o Over 500 commercial brokers /partners expected to attend November • MREJ Event o Annual Industrial Real Estate & Economic Development Conference December • Minnesota Marketing Partners Quarterly Meeting /Annual Report • Outline RFP for a B -2 Downtown Business District Planning Study January • City Council EDA Annual Report • EDAM Winter Conference • Farmington Expo February • Ehlers Finance/TIF Seminar March • Minnesota Marketing Partners Quarterly Meeting Ongoing • Ribbon Cuttings /new business welcome • Farmington Coffee Breaks — DCR Chamber • FBA involvement • DEED Minnesota Marketing Partners opportunities • MNCAR broker activities and property data • EDAM professional events and seminars • Bi- monthly meetings with local commercial brokers /property owners • 2015 Website overall (City-wide) • Daily collaboration with planning /inspections staff • Additional opportunities as they arise ACTION REQUESTED None, the above is meant to serve as a monthly update of the Marketing Plan. TO: FROM: SUBJECT: DATE: City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Economic Development Authority Adam Kienberger, Community Development Director October Director's Report October 27, 2014 INTRODUCTION/DISCUSSION Development Update Here are a few development updates on projects currently underway: • Edward Jones is moving offices within Downtown Farmington — the move should be complete in a few weeks • Papa Murphy's is in for permits for a new location at the Tamarack Ridge shopping center • El Charro Mexican Restaurant is progressing on their remodel of the former Baldy'sBurger King building • The Farmington Outlet store is reopening as Overstock Outlet with a slightly different concept • The Valmont expansion is nearing completion and should be done in about a month • The Farmington Mini Storage expansion is near completion Building Permit Reports Please find attached the monthly building permit report provided by the Planning Manager: As of October 17th a total of 80 permits for new residential housing have been issued. The number of permits for new residential construction is down from last year where at the end of October 2013 a total of 110 permits had been issued. At the current rate at which permits are being received and issued I would estimate that we will likely issue around 100 permits for new residential construction this year. Minnesota Manufacturers Week The week of October 19 -25 was Minnesota Manufacturers Week. Mayor Larson proclaimed the week of October 19 -25 Minnesota Manufacturers Week in Farmington at the October 20th City Council meeting. A copy of the proclamation is attached. Miscellaneous Articles Attached are several articles you might find of interest relating to the manufacturing sector and an Open To Business update. ACTION REOUESTED None, this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type ❑ Backup Material Description Director's Report Attachments Cumulative Permit Count ✓ '•t r` O 0 00 (!) ( Nt (0 ( rt OD N O N CO CO CO N r- N rte- r` r` CO CO �-- 00 r E w w ✓ 00 Co r` CO r• N r O 00 (0 r` 0) O L. N N N O N r` C)) 't r- CO 00 0) (0 r 00 w CO 'ct (f) (n N r r r r r E O z 0) r` V' V' 00 N N 0 OD N 0) (0 r` 0 0 L. 00 (0 CO O0 O) et c0 0) (0 CO 00 0) (0 r O • N O') V V' �--' r r O 0 V 00 r N 0) 00 CO N O 0) (0 N O OD L N N r CO Ch O CO N et (n r` 0) (n 0 r- o.) N 0) rt NP r r r r r T- .10 E w 0. O) (O (O (n r1' 0) 0) N (r) N N (D ([) y 00 N LO CD CO 0) O CD (0 , 0) !t t- O et 00 r` r r 7 0) (0 r- r O C7) 0) 0) rt r (0 O CA O N r- r O r` 00 CO '4t O 0) M CO O M r` (0 N CO 0) r r N r` (0 N CD O CO CO r` N N Ps 0) CO N CO r` N 0) N r (0 0) 0) (O (0 y r r N M r r C 7 V' Nr N 0) r, ,r ,r OD Is et 0) 141 CO i- T (0 O h ,r (1) O (O r r to N N d' 0) N r r N N r r 2 0. M 0) N «) (0 (0 N rt N N r` C0 00 O 00 N 0) (4) r r et CO (n r r et r r Cl N ✓ r r N r CV r O) O N r N C) r` CO (4) N O) r s r. O CO 00 N 00 0t CO r r r N 0 11f 2 .0 LL ✓ 0• 000ar`0L0Mr•1NOLn(nN rnMm r CD N O r r` O M M [t M r CO r` r M rt O N r R r O r N 0) Tr (n co t` 00 C)) O r- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N K: \ECONOMIC DEVELOPMENT\EDA Meetings12014 \October\Building Permit Comparison current(use this one) City of Farmington Proclamation Mayor's Proclamation Whereas The manufacturing industry is a dynamic part of Minnesota's economy, and promotion of this sector's strength, success and high quality of life is an integral part of Minnesota's economic development strategy; and Whereas Manufacturing directly and indirectly provides more than 826,000 high - skill, high -wage jobs, which significantly contribute to Minnesota's high standard of living and economic vitality; and Whereas Manufacturing has the second - largest total payroll among private- sector businesses in Minnesota, providing $18.3 billion in wages; and Whereas Manufacturing produces $43.7 billion in state economic impact or 16 percent of our gross domestic product; and Whereas Manufactured exports bring nearly $20 billion into Minnesota's economy. Now, therefore, I Todd Larson, Mayor of Farmington, do hereby proclaim that, the week of October 19 to October 25, 2014 shall be observed as: MINNESOTA MANUFACTURERS WEEK in the City of Farmington on this twentieth day of October, Two Thousand and Fourteen. MAYOR Adam Kienberger From: Sent: To: Subject: DEED Communications <MNDEED @public.govdelivery.com> Monday, October 20, 2014 3:38 PM Adam Kienberger Celebrating Manufacturing M I N N E S O T A MANUFACTURERS WEEK "tot Err,%;,- :ru•.ir:; Celebrating Manufacturing Manufacturers Week recognizes industry responsible for over 30 percent of all jobs in Minnesota Minnesota Manufacturers Week, a statewide public celebration that puts the spotlight on a crucial sector of the state's economy, is this week, Oct 19 -25. Governor Mark Dayton issued a proclamation declaring the week of Oct. 19 to be Minnesota Manufacturers Week — highlighting the importance of the industry to the state's economy. The annual event is designed to educate the public about manufacturing's role in the state's economy and to highlight opportunities for employment in the industry. "Last year, manufacturing contributed over $43 billion to our state's economy and employed over 300,000 workers," said Governor Dayton. "This week we celebrate the hard work and many accomplishments of Minnesota's manufacturers, and reaffirm our commitment to their continuing success." Throughout the week, plant tours of manufacturing facilities around the state and speakers and educational activities are planned in recognition of Minnesota Manufacturers Week. 1 When It Comes to Manufacturing, Minnesota's Got It Made It's no exaggeration to say that manufacturing is nothing short of an economic earthquake whose seismic activity vibrates in every region of the state. The impact is simply staggering. Still, most people don't fully appreciate just how many jobs, how many paychecks, and how many other industries depend on our manufacturing sector. This week's Business 101 Bloq takes a big - picture look at an industry that is central to the economic well -being of a great number of Minnesotans and every region of the state. "Manufacturing accounts for one in nine jobs in the state, and each manufacturing job supports nearly two additional jobs elsewhere in the economy through supplier purchases and employee spending," said Commissioner Katie Clark Sieben of the Minnesota Department of Employment and Economic Development (DEED). "It's crucial that we continue to support our manufacturers that are key to the overall health and growth of the Minnesota economy." Read more about Manufacturing Week here. Tour A Manufacturing Plant Thursday, Friday and Saturday this week, manufacturers all over Minnesota are opening their doors to the public and providing an up -close look at what they do and how they do it. It's a rare opportunity to see the inner workings of a factory, meet the people who work there, get some insight into the skills, education and training necessary for a career in manufacturing, and learn more about the economic impact of manufacturing. The Statewide Tour of Manufacturing is sponsored by Dream It. Do it. Check out the tour schedule. Statewide Manufacturing Infographic Select the Infographic below for a larger image. 2 Some highlights: • Manufacturing generated $43.7 billion last year — 16 percent of total state gross domestic product. • Manufacturing directly employs 307,000 people. • Every manufacturing job supports another 1.7 jobs in other segments of the economy. • Taking direct and indirect employment together, 826,000 Minnesotans owe their livelihoods to manufacturing. • Manufacturing payroll statewide totals $18.3 billion, the state's second - highest payroll. • After weathering significant recession - related setbacks, manufacturing in Minnesota is making a slow but steady recovery. Here's hoping the growth trend and the confidence level both continue their upward path. Because what's good for manufacturing is good for Minnesotans everywhere. Today's Manufacturing Video: Made In Minnesota What makes Minnesota so great for manufacturers? Big ideas. Bright minds. Talented, industrious workers. A legacy of innovation. And oh, so much more. Hear straight from the people whose opinions matter most - entrepreneurs and executives who are making and shaping industries - why they think Minnesota has got it made. Select the image above to view the video. ALL REGIONS MANUFACTURING HIGHLIGHTS State* es �E cror> -c Imps: Billion Top Industries Processed Food Computers 6 Electronics Fabricated A Now Department of Employment and Economic Development STAY CONNECTED: �© 10 rr© SHORE SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help Questions? Contact Us DEED is an equal opportunity employer and service provider. Made In Minnesota Directory Wanted: More Links in the Supply Chain It pays for Minnesota manufacturers to buy materials, components and finished products from each other instead of out -of -state or foreign suppliers. Our Manufacturers Supply Chain Database makes it easy for Minnesota companies to find -- and be found by -- home -state suppliers that are a perfect fit. More than 900 companies are already listed. It's time you joined them. Sign up at no cost. Farmed ly This email was sent to akienberger @ci.farmington.mn.us using GovDelivery, on behalf of: Minnesota Department of Employment OVDELIVERY.Q and Economic Development • 332 Minnesota Street Suite E -200 • Saint Paul, MN 55101 • (800) 657 -3858 9 3 yr!1;• •it(t out. http: / /online.wsj.com /articles /man ufactu ring- wages - rise - fast -i n -some- states - amid -slci Ils- shortages- 1412802098 Manufacturing Wages Rise Fast in Some Areas Skills Shortages, Falling Jobless Rates Force Firms to Pay Up By James R. Hagerty Updated Oct. 8, 2014 5:11 p.m. ET Change in hourly factory wages since Aug. 2011 30% 25 20 15 10 1 '13 1 '14 AUG. 2014 TEXAS $21.08 "13 125% OREGON $1937 19% WASHINGTON :cc' $24.81 16% -00 NATIONAL $19.56 14% Source: Labor Department The Wall Street Journal HELP WANTED: Factory pay is up in some industrial states as manufacturers shell out more to attract specialized skills and to retain workers. Manufacturing wages are rising at a rapid clip in some major industrial states as shortages of certain skills and gradually falling unemployment rates force more companies to pay up to attract and retain workers. Although manufacturing wages on a nationwide basis are still rising slowly —and they lag behind the average increases for all private - sector workers —they are growing faster than overall wages in certain states. In Texas, wages for all types of production workers in factories grew an average of 6.3% from a year earlier, compared with nationwide overall private - sector wage growth of 2.3 %, according to U.S. government data for the three months ended Aug. 31. Factory -wage growth was 4.4% in Washington State, 4% in Oregon and 3.1% in Indiana in that period. The bigger pay increases in certain industrial states are likely to spread to other parts of the country, especially as baby boomers start to retire, some economists say. "There are skill shortages that are developing and are going to be more and more widespread," said Daniel Meckstroth, chief economist at the Manufacturers Alliance for Productivity and Innovation, an industry- funded research group in Alexandria, Va. The wage growth applies to a wide range of manufacturing jobs —from machine operators and repair people to electricians and engineers —and not just to specialties such as welding, where shortages are acute. It also comes in spite of two - tiered wage scales in some industries in which new hires start at much lower pay, a practice that has long restrained wage growth. In auto - dominant Michigan, where two -tier wage systems are common, wage growth for manufacturing workers was 2.5% in the three -month period, compared with the national average of 1.6% for manufacturing wages. Li Mir air Manufacturing wages are rising in some states, including Texas, where this Loadcraft Industries factory is located. Ben Sklar for the Wall Street Journal Around the country, some manufacturing companies are looking at apprentice programs and offering cash incentives to workers who refer good job candidates. In markets where labor is particularly tight, workers are job hopping for higher pay. "What we mainly need is welders," said Terry McIver, chief executive and owner of Loadcraft Industries Ltd., a maker of parts for oil rigs in Brady, Texas. Loadcraft, with more than 400 employees and annual sales of around $80 million, has had to use welders from temporary -help agencies at a cost of around $37 an hour, or nearly double the wage cost for staff welders. Mr. McIver said he is looking at the possibility of buying robotic welding equipment and bringing in workers from Mexico. Dewayne Roy, head of the welding program at Mountain View College in Dallas, said he recently had a waiting list of about 250 people seeking to enroll. One student, Logan Porter, 22, started working for a metal- fabrication shop in the Dallas area in February and is putting in 55 to 60 hours a week. He earns $17 an hour, but with time and a half for overtime, his weekly take -home pay typically exceeds $800. "I love the work," he said. While the energy boom has spurred demand for labor in Texas, worker shortages are also pushing up costs elsewhere for a wide variety of other firms. Washington and Oregon have a broad array of manufacturing, including aerospace, semiconductors, food and wood products. Greenbrier GBX -0.09% Cos. so far this year has increased the work force at a Portland, Ore., plant that makes railcars and ocean -going barges to about 1,075 from 630. In Indiana, makers of engines, recreational vehicles and other products have seen a strong rebound since the 2008 -09 recession. "If you drive through Elkhart County, you'll see Help Wanted signs everywhere," said Jeffery Tryka, investor - relations chief at Thor Industries Inc., THO +0.49% which makes many of its recreational vehicles in the northern Indiana counties of Elkhart and LaGrange. Thor said higher labor costs, including wages and training, helped pinch profit margins in the fiscal fourth quarter ended July 31. Steve Van Loan, president of Sullivan Palatek Inc. in Michigan City, said job hopping is becoming more of a problem. "They get an offer for more money across town, and they're gone," he said. Wages on average at his firm, which makes compressors that power drills and other tools, are rising 4% to 5% this year, compared with 2% to 3% in recent years, Mr. Van Loan said. "Everybody got so skinny back in the days when we were laying off everybody," he said. "Now that the Midwest is getting some manufacturing back, it's just tough to find workers" with the needed skills. Job hoppers tend to have much higher wage growth than workers who stay in the same post. Data from the payroll - services firm ADP LLC, released Wednesday, show that hourly wages for manufacturing workers who recently switched to a new employer rose an average of 4.2% in the third quarter. The year - earlier average was 3.6% for such job switchers. Mark Zandi, chief economist at Moody's Analytics, expects wages in many industries, including manufacturing, to start rising faster nationwide over the next two to three years. As the unemployment rate edges lower, "the labor market is tightening, slowly but surely," he said, adding that higher wages should boost the economy by encouraging more consumer spending. Five years ago, hourly manufacturing wages in Texas were about 27% below the national average. Since then, those. wages have surged 46% and are now about 8% above the national figure. Houston -based National Oilwell Varco Inc. NOV -0.54% offers workers cash incentives for referring good candidates for manufacturing jobs. In Tyler, Texas, the average age of workers at the McWane Inc. plant is 57. McWane is considering apprenticeship programs to rejuvenate its work force and address an emerging shortage of electricians and people who build, install and maintain machines, said James Proctor, a senior vice president at the Birmingham, Ala. -based maker of water pipes and valves. Robert Dye, chief economist at Comerica Bank in Dallas, expects wage gains in Texas to remain above the national average. Even so, he said, the state remains "a low -cost location for manufacturing. Land is cheap; energy is plentiful." Write to James R. Hagerty at bob.hagerty @wsj.com Adam Kienberger From: Rob Smolund <mccd @mccdmn.ccsend.com> on behalf of Rob Smolund <info @opentobusinessmn.org> Sent: Monday, October 06, 2014 10:02 AM To: Adam Kienberger Subject: Open to Business Update Follow Up Flag: Follow up Flag Status: Flagged A New Approach in Scott County TO BUSINESS In 2013 a group of merchants in downtown New Prague got together to form their own organization - Shops on Main. During their early months, SOM members met informally to discuss promotional ideas and other opportunities for joint activities. September 2014 In February of this year, they contacted Open to Business and asked if they could get staff support for their group as a whole. Christine Pigsley, Scott County's OTB Advisor readily agreed. "I thought that sounded like a great opportunity to create economies of scale with our program resources and to leverage collective action for better economic development outcomes," Christine said. Now, the Scott County group meets with Christine every other month to work on a collective marketing plan and other issues that affect the group as whole, like social media and data privacy. We are moving ahead," she adds. "I think Shops on Main is making a real difference in New Prague. " Spreading the Word in Inver Grove Heights 1 IN %tI III Mil Tom Link looks back at last year's roll out of Open to Business in Inver Grove Heights, and remembers early on that the city's new program was not having much of an impact. "We were just not getting the response that we wanted," recalls Link, the city's Community Development Director. In order to spread the word about the new business support effort, Link brought together some colleagues to brain storm about ways to give Open to Business more visibility in Inver Grove Heights. The group included the Riverview Chamber's Jennifer Gale and OTB's Dakota County Advisor Laurie Crow. We realized that we needed a multi - pronged approach that made use of the various marketing tools available to us," Link said. That approach eventually involved more visibility for OTB on the city's website, a notice in a citywide newsletter and one -on -one contacts with local bankers and city regulatory staff who dealt with local businesses on a day -to -day basis. "I think our efforts paid off," Link said. "During the first six months of this year, our participation rate with small businesses was nearly double what it had been all of last year." OTB Loans Here is how three of our second quarter borrowers used their OTB funds: Quality Inn Coon Rapids. Tahir Kahn purchased and upgraded a Quality Inn in Coon Rapids. OTB partnered with Northeast Bank and the Minnesota Business Finance Corporation to finance this key economic development project in Anoka County. Primrose School Minnetonka. Dan and Cathy Keefe converted a vacant office building in Minnetonka to a child care center, Primrose School. The new center will serve 181 children aged six weeks to 12 years. The Keefes' new center was financed by OTB and First Children's Finance. Wagner at Law PC. Candace Wagner, a Rosemount resident, started her single - member law practice in 2011. Candace provides legal services to small businesses including business registration, partnership agreements and tax law compliance. An OTB loan helped Candace expand her marketing and purchase new equipment for her ::3 :. office. 2 News Briefs Tim and Kristen Huinker's Rolling Hearth Bistro was recently featured in the Waconia Sun Patriot. Rolling Hearth is a Waconia- based business that brings its mobile wood - fired pizza oven to farmer's markets, parties and special events throughout and Scott counties. Tim and Kristen set up their business after they kept getting rave reviews for the pizzas they made on their own backyard wood -fired oven. Click here for the Sun Patriot story. Open to Business will be administering Norwood Young America's revolving loan program under an agreement between OTB's lending arm, the Metropolitan Consortium of Community Developers, and the city's Economic Development Authority. The program provides affordable gap financing for local businesses and is designed to leverage private capital provided by area banks. More details are provided here. The Lakeville Area Chamber of Commerce and the Lakeville School District have established Minnesota's first Young Entrepreneurs Academy. The Academy will help Lakeville students in grades 6 -8 launch a business or a social movement during the school year. Click here for more information. Second Quarter Results Second Quarter 2014 numbers provide a quick snapshot of our on -going efforts to provide counseling and access to capital for aspiring entrepreneurs who are moving on to the next stage in the development of their business ventures. During the second quarter, our OTB staff provided 1200 hours of technical assistance to 245 business clients. We loaned just under $300,000 to 14 small businesses. Our direct loans leveraged nearly $7 million dollars in outside funds for these businesses. Contact us: info@opentobusinessmn.org 612/789 -7337 3 nil L' ......04\ • Dakota County Community Development Agency CDA To: Dakota County Cities From: Lisa Alfson Date: October 14, 2014 Re: Foreclosure Update Dakota County Stats — September 2014 • # of Sheriff Sales in September — 52 (compared to 60 in September 2013) • Total Sheriff Sales for 2014 — 519 (compared to 769 Jan.- September 2013) • # of Notices of Pendency Filed in September — 87 • # of Notices of Pendency Filed in 2014 — 857 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 2014 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. If you have any concerns, please call me at (651) 675 -4467 or send me an email at lalfson @dakotacda.state.mn.us. Sheriff Sales September 2014 City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2014 2013 Apple Valley 7 8 6 4 13 3 8 5 8 62 147 Burnsville 8 14 9 8 8 6 10 15 9 87 143 Eagan 9 2 9 11 10 9 9 3 6 68 128 Farmington 7 3 5 4 5 5 7 5 6 47 70 Hastings 5 2 5 2 7 3 4 4 3 • 35 48 Inver Grove Heights 5 7 3 3 9 6 5 1 1 40 84 Lakeville 6 8 3 7 10 6 4 5 8 57 108 Mendota Heights 0 0 0 0 0 1 0 0 0 1 7 Rosemount 5 3 5 3 3 1 3 2 1 26 50 South St. Paul 8 3 2 3 4 8 5 2 6 41 78 West St. Paul 6 5 3 1 4 6 3 2 0 30 44 Small Cities 6 2 0 3 1 2 4 3 4 25 18 72 57 50 49 74 56 62 47 52 519 925 TOTAL 2013 142 73 84 86 90 58 107 69 60 51 45 60 925 TOTAL 2012 168 123 126 171 122 120 103 132 123 117 117 103 1,525 TOTAL 2011 150 166 197 191 170 193 146 132 173 112 191 164 1,985 ErtioN, Dakota County I II Community Development Agency CDA Foreclosure Summary for Dakota County SOURCE: Dakota County Sheriff Sales. City numbers are based on munlcipa ity address. For more Information about the CDA's homeowner or homebuyer services, visit www chkotacda org or call (651) 675 -4472. [Pe MI Dakota County Community Development Agency CDA Notice of Pendency Filings September 2014 City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2014 2013 Apple Valley 14 6 16 15 13 9 5 25 10 113 224 Burnsville 18 16 13 14 16 17 17 16 9 136 233 Eagan 21 I 18 15 7 11 10 13 13 119 190 Farmington 11 8 8 7 7 5 7 14 6 73 112 Hastings 11 5 8 9 7 5 8 4 2 59 96 Inver Grove Heights 5 10 14 8 5 5 5 4 8 64 118 Lakeville 9 15 11 9 9 7 13 16 13 102 181 Mendota Heights 1 0 2 0 0 3 1 3 2 12 20 Rosemount 4 4 5 6 7 7 2 7 4 46 98 South St. Paul 6 5 7 13 i 6 7 4 11 64 117 West St. Paul 5 2 4 8 2 5 5 2 5 38 65 Small Cities 2 5 4 2 3 4 4 3 4 31 42 TOTAL 107 87 110 106 81 84 84 111 87 857 1,496 NOTE: Notices of Pendency are filed by a mortgage company's attorney as official notification that the foreclosure process has begun. Not all of these result In sheriff sales. Numbers are based on Notice of Pendency filings with Dakota County Property Records. City numbers are based on municipality address. For more Information about the CDA's homeowner or homebuyer services, visit www dakotacda.orr or call (651) 675.4472.