HomeMy WebLinkAbout05/24/2018 EDA Meeting•••
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Apple
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Meeting Location: Municipal Center
7100 147th Street West
Apple Valley, Minnesota 55124
May 24, 2018
ECONOMIC DEVELOPMENT AUTHORITY REGULAR
MEETING TENTATIVE AGENDA
6:00 PM
1. Call to Order
2. Approve Agenda
3. Approve Consent Agenda Items
Consent Agenda Items are considered routine and will be enacted with a
single motion, without discussion, unless a commissioner or citizen requests
to have any item separately considered. It will then be moved to the regular
agenda for consideration.
A. Approve Minutes of March 22, 2018, Regular Meeting
4. Regular Agenda Items
A. Review and Discuss Economic Development Chapter of 2040
Comprehensive Plan
B. Authorize Community Development Director Bruce Nordquist to
participate in an Economic Development Roundtable Between Greater
MSP and Greater Memphis
5. Staff Updates
6. Adjourn
Regular meetings are broadcast, live, on Charter Communications Cable Channel
180 and on the City's website at www.cityofapplevalley.org
APPVaIIey
ITEM:
EDA MEETING DATE:
SECTION:
3.A.
May 24, 2018
Consent Agenda
Description:
Approve Minutes of March 22, 2018, Regular Meeting
Staff Contact:
Joan Murphy, Department Assistant
ACTION REQUESTED:
Approve minutes of regular meeting of March 22, 2018.
Department/ Division:
Community Development Department
SUMMARY:
The minutes of the regular Economic Development Authority meeting are attached for your
review and approval.
BACKGROUND:
State statute requires the creation and preservation of meeting minutes which document the
official actions and proceedings of public governing bodies.
BUDGET IMPACT:
N/A
ATTACHMENTS:
Minutes
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
March 22, 2018
Minutes of the regular meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held March 22, 2018, at 6:00 p.m., at Apple Valley Municipal Center.
PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw, Johnson
and Melander
ABSENT:
City staff members present were: Executive Director Tom Lawell, Community Development
Director Bruce Nordquist, Finance Director Ron Hedberg, Planner/Economic Development
Specialist Alex Sharpe and Department and Assistant Joan Murphy.
Meeting was called to order at 6:00 p.m. by President Hooppaw.
APPROVAL OF AGENDA
MOTION: of Hamann -Roland, seconded by Bergman, approving the agenda. Ayes - 7 - Nays - 0.
CONSENT AGENDA
MOTION: of Hamann -Roland, seconded by Grendahl, approving the minutes of the meeting of
January 25, 2018, as written. Ayes - 7 - Nays — 0.
OPEN TO BUSINESS PROGRAM
Community Development Director Bruce Nordquist introduced Laurie Crow, Business Coordinator
with Open To Business (OTB). Ms. Crow provided an update on how the program is progressing
in Dakota County and made comparisons to surrounding counties. The program is offered through
the Metropolitan Consortium of Community Developers (MCCD), and helps small businesses and
entrepreneurs that need individual advice and counseling, and access to capital that is not available
from the commercial banking system. Small businesses and entrepreneurs generate a significant
number of jobs and income, but are often unable to obtain traditional funding because they are
considered too risky by many lending institutions. The technical assistance and financing network
offered by MCCD can make a difference in creating a successful business.
Ms. Crow reported on the successes of the OTB program in Apple Valley and introduced Mikey
Fornicoia from Brown Box Tees. Mr. Fornicoia spoke of his experiences of opening a business and
how the program helped him.
Discussion followed.
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
March 22, 2018
Page 2
2040 COMPREHENSIVE PLAN UPDATE
Community Development Director Bruce Nordquist introduced the Economic Development
chapter. He said in 2008, for the 2030 Comprehensive Plan Update, an "Economic Development"
Chapter was added, one of the first in the Region, to include a strategic plan on this topic. Much of
that framework will continue, highlighting:
• The $110 million in business attraction, retention and expansion observed from 2011 to
2015 that paralleled the launch of the Red Line and completion of 147th Street.
• Significant expansion, investment and employee growth at Uponor and Wings Financial.
• Apple Valley's strength in its primary retail trade area of approximately 7 miles where an
estimated population of 230,000 with an annual income of $98,590 presently resides and is
growing.
• The redevelopment of the 414 acre active mining area centered at CSAH 42 and Johnny
Cake Ridge Road as a mixed business campus; and the efforts by the owner, Rockport LLC,
to attract medical services as a dominant user.
• The redevelopment of the 60 acre Hanson Concrete/Menard parcel, to be redeveloped as a
proposed mix of home improvement supply retail and industrial uses adjacent to a fuel
storage facility.
The Chapter will also expand in the following areas:
• Addressing business climate change; long term sustainability and resilience, the trend
toward the retailization of medical services which Apple Valley is well positioned for,
facilitating a trained workforce matching demand, and a continuation of pro-business
relationships.
• Encouraging retail place making that offers experiential amenities and tenant mix.
• Selective redevelopment and vertical mixed use in our transit station area while also
protecting established adjacent uses.
• Recognition that significant technological advances are anticipated in use of vehicles, the
delivery of people, goods and services and communication.
• Continue as a Green Step City leader in sustainability, resilience and energy conservation.
Since 2010, every business client meeting with staff has received a copy of the Economic
Development Chapter. Staff will continue to pursue the positive aspects of competition with cities
to attract and retain business, and people, as the best city to live, work, shop, learn and recreate.
Many cities may add an economic development chapter but few will have our successful
experiences to date in the use of the Chapter. Apple Valley continues to display a strong brand
where you can Plant — Grow — Prosper!
Discussion followed.
ADJOURNMENT
MOTION: of Melander, seconded by Bergman, to adjourn. Ayes - 7 - Nays - 0.
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
March 22, 2018
Page 3
The meeting was adjourned at 6:46 p.m.
Respectfully Submitted,
/s/ Joan Murphy
Joan Murphy, Department Assistant
Approved by the Apple Valley Economic
Development Authority on Clint Hooppaw, President
APPVaIIey
ITEM:
EDA MEETING DATE:
SECTION:
4.A.
May 24, 2018
Regular Agenda
Description:
Review and Discuss Economic Development Chapter of 2040 Comprehensive Plan
Staff Contact:
Bruce Nordquist, Economic Development Director, Al CP
ACTION REQUESTED:
No action. Review and feedback sought only
Department/ Division:
Community Development Department
SUMMARY:
A draft Economic Development Chapter has been prepared by the City Consultant, SRF. It
follows the Economic Development Chapter of the 2030 Comprehensive Plan and mentions
new trends and directions with a strategic plan, staff has restated strategic priorities and will
adjust the narrative to coincide with the following:
1. Attract large employers to the Mixed Business Campus
2. Investment in the Downtown quadrants; a retail hub of attraction, retention and
expansion.
3. By design, make the superblocks characteristic of the Downtown quadrants, more
accessible and offer ease of movement for vehicles, bikes and pedestrians.
4. Develop connections regionally, nationally and globally given proximity to the airport
and continue to encourage effective transit service expansion and fiber optic
deployment.
5. Support and develop well educated and trained workers that match job availability and
next generation job growth.
6. Develop economic resilience that adapts to trends in business climate and the unknown
natural disasters that could affect City and business services and operations.
Staff is soliciting feedback and discussion by sharing these draft strategies and chapter.
BACKGROUND:
N/A
BUDGET IMPACT:
N/A
ATTACHMENTS:
Background Material
Economic Development
Introduction
Land use planning is not sufficient to address the economic development and redevelopment
needs of Apple Valley. In this chapter, the City outlines strategies to create jobs; expand the
property tax base; attract and retain businesses and industry; and enhance the image of the
community.
Since the City was incorporated in 1969, Apple Valley has become a major hub of commercial
activity in the south metropolitan area. The City is well served by large retailers and smaller
niche businesses that bolster community identity and add to the residents' quality of life. Apple
Valley is routinely named by Money Magazine as one the "Best Places to Live". In 2013, it was
ranked 17 out of the 50 cities that were recognized. This recognition is partially due to the
vibrant local economy and amenities. Maintaining a vital economy requires focused planning
and continued investment.
Strategic Plan
There are six pillars to the economic development plan. They are summarized below and
expanded upon at the end of the chapter.
1. Attract large employers to the Mixed Business Campus
The main goal of Apple Valley's economic development strategy is to increase local
employment; specifically, to increase the number of jobs that pay well enough to sustain
household. Attracting large employers to areas adjacent to Downtown will counter the effect of
out -commuting and improve the jobs/housing balance. The Twin Cities metro is an attractive
headquarters for national and regional businesses, including hospitals and supporting medical
offices, corporate offices, and manufacturing. With available land and a clear vision for
redeveloping the Fischer Mine into a mixed -business campus, Apple Valley is the best regional
location for these uses. With great places to live, play, shop, and do business, Apple Valley
already has many qualities that are valued by prospective employers and working families, but
more can be done to build on the city's employment potential.
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2. Unify the Downtown through infrastructure and design
The layout of Downtown is defined by large quadrants focused around Apple Valley's most
important intersection, Cedar Avenue and County Road 42. These wide highways convey high
volumes of traffic, limiting connectivity and cohesion. The City must respond to increasing traffic
and congestion in a way that strengthens connectivity and prevents conversion to a grade
separation and a freeway -like environment. Where feasible, multimodal connectivity should be
enhanced across Cedar Avenue and County Road 42; however, some treatments may be
prohibitively expensive and/or ineffective, given Downtown's established structure and function.
Because heavy traffic limits the potential for "main street" style development on Cedar Avenue,
it may be more feasible to make improvements within the surrounding superblocks. Breaking up
these superblocks will support redevelopment opportunities by creating flexibility for a variety of
smaller users to take root. The Downtown design guidelines provide a framework for guiding the
transition of Downtown to a more walkable, sustainable business center. Enhancing multimodal
facilities, extending the Ring Route design concept, and developing connections between
Downtown and surrounding neighborhoods will strengthen cohesion and further develop the
identity of Downtown.
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Economic Development 12
3. Reinvest in Downtown, adapting to changing retail trends
The nature of American retail is changing. Thanks largely to the rise of e-commerce, many
brick -and -mortar specialty chains, including Macy's, Best Buy, Toys R Us, and Sears, are
shuttering. While a pattern of extensive commercial value decline is not evident in Apple Valley,
some properties are vacant or underperforming. Others can be expected to become obsolete
over the next 20 years without a strategy to redevelop/repurpose them. Revitalization will run
the gamut from adaptive reuse of serviceable structures, to larger -scale rehabilitation and
redevelopment. The City prefers to implement market-based solutions when possible. In some
cases, the City will leverage tax incentive policies, such as tax increment financing (TIF), to
prepare sites for redevelopment and attract additional investment from the private and public
sectors. Development and redevelopment will be guided by enduring partnerships between the
City, private business, and other stakeholders.
4. Develop connections within the Twin Cities metro and beyond
To succeed in a globalized economy, Apple Valley must enhance and maintain connections to
the Twin Cities metro and beyond. Some connections are physical. Others are social, economic,
financial, or digital. In a digital society, most communication relies on fiber optics, satellite, and
wireless systems. Global enterprise is data -driven, and the amounts of data which are created,
processed, and consumed grow every day. As more data is produced, processed, and shared,
Apple Valley must continue to expand its digital communication networks. Likewise, it is
essential to maintain and expand transportation connections. Apple Valley benefits from its
regional highway location. The extension of the Red Line bus rapid -transit (BRT), with service to
the Mall of America and other regional destinations, is a key catalyst for economic development
in and around the Cedar Avenue corridor. Leveraging and expanding these and other networks
will make the City more profitable and create new value that will retain our competitiveness in
the region and the world.
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5. Support STEM -related businesses and workforce development
Traditional retail development — national chains and local businesses — will be only one part of
the business community profile of the future. In the knowledge economy, the City will need to
lead and attract new business investment that advances the themes of science, technology,
engineering, and math (STEM disciplines). These professional disciplines provide good
incomes, which is a key part of Apple Valley's overall economic development strategy. Apple
Valley is committed to supporting STEM initiatives through business development, financial
investment, education, and workforce training.
6. Develop economic resilience
The economic strength of Apple Valley is derived from its connections to regional, national, and
global economies. When conditions in these economies change, the City is affected. The last
recession is a prime example. Developing resilience will help Apple Valley withstand future
shocks to the local economy. Apple Valley can build resilience by implementing policy initiatives
that diversify local industry, increase access to local employment, reduce reliance on long-
distance car travel, and develop the ability of workers to adapt to changing economic conditions.
Another strategy, discussed above, is to expand and diversify the infrastructure which supports
economic function, including energy systems, broadband networks, and high-quality housing.
Regional Economy
Economic development does not happen in a vacuum. Apple Valley is part of a thriving, broad-
based regional economy. Understanding regional industry strengths will help the City narrow its
economic development strategies, target investments, and position itself as a favorable partner
with key actors in regional industry.
The U.S. Cluster Mapping Project identifies concentrations of related industries within the Twin
Cities Metropolitan Statistical Area and Dakota County. Cluster industries are linked through
supply/production chains, supporting institutions, and positive economic spillover effects.
Several clusters in the Twin Cities Metro (MSP) have expanded employment in the last two
decades, including Business Services; Education and Knowledge Creation; Distribution and
Electronic Commerce; Marketing, Design, and Publishing; Performing Arts; Biopharmaceuticals;
Oil and Gas Production and Transportation; and Medical Devices. These clusters are traded,
meaning they primarily produce goods and services for export. Developing traded clusters is
important because they often support higher wages and they induce economic growth in other
industries.
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The largest cluster is Business Services, with more
than 200,000 employees. The Twin Cities metro has
the largest concentration of corporate headquarters
per capita in the United States. The strongest cluster
is Medical Devices, which ranks third in the nation
compared to similar metros. This cluster is powered
by companies such as Medtronic, Boston Scientific,
and 3M.
Economic development activities
should dovetail with regional
strengths, such as Business
Services, Medical Devices, and
other cluster industries.
Figure 6.1 provides depicts cluster linkages in the Twin Cities metro. The strength of each
industry is determined by its location quotient, a which is a measure of local
employment/production relative to the national average. All industries identified in green have a
location quotient greater than 1.0, indicating that that they have a relatively stronger presence in
the Twin Cities than elsewhere in the United States. The strongest industries are identified in
dark green.
Table 6.1 provides more in-depth information about employment, wages, and subcluster
linkages. Most of these clusters saw expanded employment from 1998-2015.
The U.S. Cluster Mapping Project also provides county -level data. The strongest clusters in
Dakota County largely mirror those for the broader region. Other key traded clusters in Dakota
County include transportation and the aerospace vehicles and defense cluster. More data
describing county and regional clusters is available at www.clustermapping.us.
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Economic Diversification
U
Minneapolis, MN Metropoiitan Area, 2015
www.clusterma
Cluster industries support and are supported through cross -sector linkages. The strongest industries are identified in green. Source: US Cluster Mapping Proje
Economic Development 16
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Table 6.1 - Cluster industries in the MSP metro
Cluster
Rank relative to
similar metros
Employment
(2015)
Average Wage
(2015)
Subclusters
Medical Devices
3
12,004
$77,247
Optical Instruments and
Opthalmic Goods, Surgical and
Dental Instruments and Supplies
Printing Services
4
15,670
$55,815
Printing Services and Support
Activities, Printing Inputs,
Greeting Card Printing and
Publishing
Information Technology
and Analytical Instruments
7
35,899
$86,764
Electronic Components,
Computers, Semiconductors,
Software Publishers, Software
Reproducing, Process and
Laboratory Instruments, Medical
Apparatus, Audio and Visual
Equipment
Insurance Services
8
34,971
$98,719
Insurance Related Services,
Insurance Carriers, Reinsurance
Carriers
Marketing, Design, and
Publishing
10
29,727
$65,346
Advertising Related Services,
Other Marketing Related
Services, Design Services,
Publishing
Business Services
11
207,480
$93,229
Corporate Headquarters,
Consulting Services, Business
Support Services, Computer
Services, Engineering Services,
Architectural and Drafting
Services
Distribution and Electronic
Commerce
12
89,550
$83,359
Wholesale, warehousing, and
distribution of various goods.
Financial Services
12
35,402
$119,376
Financial Investment Activities,
Credit Intermediation, Credit
Bureaus, Monetary Authorities
(Central Bank, Securities Brokers,
and Exchanges)
Biopharmaceuticals
20
2,304
$79,051
Biopharmaceutical Products,
Diagnostic Substances, Biological
Products
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City Resources
A healthy municipal economy has several components. The following components can be
viewed as integrated resources which the City will seek to retain, expand, or enhance over the
life of this plan:
• Property tax base
• Local job opportunities
• Workforce potential
• Development/redevelopment potential
• Community image and identity
The following section explores each of these resources as they relate to the Comprehensive
Plan. The role of the City is to foster new development and retention of business activity to
provide employment opportunities and support a strong tax base.
Property Tax Base
Under the current system of local government finance, property taxes are the largest source of
revenue. For this reason, the creation of a new tax base is an important focus of community
development policies.
Components of Property Valuation
Effective strategies to promote the growth of the tax base requires a clear understanding of the
property tax system. There are three components of property tax valuation that influence the
amount of property taxes paid. The foundation of the property tax system is Estimated Market
Value. This amount is the assessed value of a parcel of property. In some circumstances, the
State Legislature limits the amount of Estimated Market Value that can be used for taxation.
These adjustments result in the Taxable Market Value. Tax Capacity Value is a percentage of
Taxable Market Value. The percentage factors are set by the State Legislature and vary by
class of property.
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Figure 6.2 - Taxable Market Value
6,000,000,000
5,000,000,000
4,000,000,000
3,000,000,000
2.n0 0n0.00,
1,000,000,000
■ AIIOther
❑ Industrial
■ Commercial
❑ Apartments
■ Residential
Taxable Market Value
Figure 6.1
Figure 6.3 - Sources of Change in Property Valuation
500,000,000 —
400,000,000 -
300,000,000 -
200,000,000 -
1000000011 -
2004!05 2005/06 2000/07 2007108 201
- 100,000,OOu -
- 200,000,000 -
■ New Construction ❑ Non -Construction Appreciation
Sources of Change in Property Valuation
Figure 6.2
Valuation Trends
Understanding how Apple Valley's tax base has changed in recent years provides useful
guidance in planning for the future. The chart in Figure 6.1 shows the components and growth
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of taxable market value of property in Apple Valley over the past five years. (The years in Figure
6.1 refer to the timing of the property tax system. 2004/05 means the value of property on
January 2, 2004, reflecting changes that occurred in 2003. Values for 2008/09 are preliminary
as of 2/21/08.) This chart illustrates several important points about Apple Valley's property tax
base:
• Housing creates the greatest amount of tax base. For 2008/2009, residential property
made up 84% of the total taxable value of Apple Valley. Apartments added 4% of total
value.
• The residential share has increased slightly over the past five years. In 2004/05,
residential property accounted 86% of total value. The percent of apartment value was
4%.
• Industrial property represents less than 1% of all 2008/2009 taxable value.
• Total value grew by 23% over the four years from 2004/05 to 2007/08. Less than one-
quarter of this growth came from value added by new construction. The appreciation of
existing properties contributed to the bulk of new value
• Total value fell by 1% in 2008/2009, despite adding $58 million in value from new
construction.
These trends point to the importance of using the Comprehensive Plan to guide the expansion
and diversification of the tax base and to promote the maintenance of existing property.
Local Jobs
The creation and retention of jobs is an important community development objective for Apple
Valley. Jobs attract residents to the community. Jobs provide the income needed to support
local business and government services. Retention of businesses promote community stability
by keeping jobs and residents in Apple Valley.
The Community Context chapter of the Comprehensive Plan makes some important
observations about employment in Apple Valley:
• 18% of Apple Valley jobs are filled by workers who live in Apple Valley. (On the Map,
2014)
• 11% of working Apple Valley residents have jobs in the city. (On the Map, 2014)
• 40% of workers traveled to places of employment outside of Dakota County. (On the
Map, 2014)
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• The largest employment sectors are retail trade (22%), education (17%),
accommodation and food services (14%), and health care and social assistance (12%).
(Quarterly Census of Employment and Wages)
Figure 6.4 - Wage Trends
Average Weekly Wage (All Industries)
$780
to $760
$740
$720
t $700
a $680
4 $660
$640
$620
2007 2009 2011 2013 2015
(Actual Wage —0—Inflation Adjusted (2016)
Figure 6.5 – Apple Valley Jobs Growth
15,500
IDA
15,000
cu
'03 14,500
0- 14,000
13,500
a)
E
0 13,000
cu 12,500
To
0
Apple Valley Jobs Growth
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0.78
0.77
0.76
0.75
0.74
0.73
0.72
0.71
0.7
0.69
Annual Employment (4 -quarter average) (Jobs per Household
Jobs per 100 residents
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The Minnesota Department of Employment and Economic Development (DEED) publishes a
Quarterly Census of Employment and Wages (QCEW). The QCEW covers all establishments
reporting wage and employment to the state under the Unemployment Insurance System.
Figure 6.4 depicts wage trends in Apple Valley for 2007 to 2016. While actual incomes are
increasing, real incomes (inflation-adjusted incomes) generally have not increased over the 10 -
year period. Wage stagnation from 2010 to 2014 is attributed to the national recession.
Figure 6.5 depicts jobs trends from 2007 to 2016. Apple Valley added more than 1,700 jobs in
that period, with most of this growth occurring during the recovery from the recession (2011 to
2016.) The rate of job growth has exceeded population growth. In 2007 the jobs/household ratio
was 0.72. By 2016 the jobs household ratio was 0.77. This data shows that Apple Valley's
employment base is slowly expanding.
Even as the number of workers has increased, the number of business establishments has
decreased. The QCEW reported 970 business establishments in 2007 and 899 establishments
in 2016. The economic downturn likely forced the closure and consolidation of some
businesses, with some unemployed workers shifting to other establishments.
It is useful to compare economic trends for Apple Valley with other Dakota County cities. Figure
6.6 compares trends for wages, employment, and the number of establishments in Apple Valley
with four adjacent cities. The data represent the four -quarter average for 2016.
Burnsville and Eagan have a competitive advantage in
terms of jobs and wages. The average wage in these
cities is 50-60 percent higher than the average wage in
Apple Valley. Higher wages are correlated with higher
jobs/housing ratios. In Eagan there are 2.14 jobs for
every household. In Burnsville there are 1.38 jobs per
household. Apple Valley has the lowest jobs/household ratio of the five cities included in Figure
6.5.
Apple Valley's employment base
is slowly expanding, but remains
smaller than those of several
neighboring communities.
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Figure 6.6 - Dakota County Wage and Employment Comparisons
2,500
s 1,913
-c 2,000
c- D
O 1,500
$1,197
$1,1
1,069
$1,1E
1,000 899 85 ' $96
z $76. $
au
500 388
Dakota County trends comparison
au1au
0
073
c Apple Valley Lakeville Rosemount Burnsville Eagan
City
Wage Establishments —0—Employment
2.50
2.00
1.50
1.00
0.50
0.00
Jobs per Household
Jobs/Housing Balance
A key consideration in the planning process is seeking a balance of jobs and housing in Apple
Valley. This balance is both in terms of the number of jobs relative to the number of households,
as well as the type of jobs relative to the education and interests of Apple Valley residents.
Locating a wide range of housing close to employment may shorten commuting distances. High
vehicle -miles traveled produces highway congestion and air pollution, reduces pavement life,
and diminishes leisure time.
A standard measure of jobs -housing balance is the ratio of jobs to housing units. (This measure
is similar as the ratio of jobs to households.) The American Planning Association recommends a
ratio of 1.3 to 1.7. However, in metropolitan areas where jobs are more regionally allocated,
cities demonstrate a range of jobs -housing ratios (See Figure 6.6). From a regional perspective,
the high degree of variance indicates that some communities have less than the ideal number of
jobs given their number of households, while others have higher employment. This is more a
regional issue than a local one — many communities have an imbalanced supply of housing and
jobs. These imbalances should be addressed through comprehensive housing policy and
transportation planning, as well as economic policy.
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The Metropolitan Council projects 17,100 jobs and
24,900 households in 2040, for a jobs/household ratio of
0.69. This projection would be a reversal of current
trends, which show improving jobs/housing balance.
With the addition of a job center in the mixed business
campus area, Apple Valley is targeting a higher jobs
goal — 19,000 jobs — for 2040. This goal reflects the Vision for Apple Valley that seeks to create
more local jobs and more jobs with wages capable of sustaining a family.
Apple Valley seeks to expand job
opportunities, prioritizing jobs
which pay wages capable of
sustaining a family.
Commuting Costs
The jobs/housing relationship directly impacts quality -of -life. After housing, transportation is the
largest cost for most households. The Housing and Transportation (H + T) Index provides a
snapshot of these effects for Apple Valley (www.htaindex.cnt.org). On average, Apple Valley
households spend 27 percent of their income on housing and 20 percent of their income on
transportation. For comparison, Lakeville households spend 53 percent of their income on
housing and transportation, while Burnsville households spend only 43 percent of their income
on these costs. In 2016, the average expenditure on transportation in Apple Valley was $13,594
per household. This figure includes the average expenditures for auto ownership (car payments,
maintenance, insurance, registration, etc.), fuel, and transit. With a heavy emphasis on
employment in the future land use plan, Apple Valley is seeking to increase its jobs -housing
ratio. Increasing access to local jobs, along with dedicated improvements to multimodal
transportation, will improve quality -of -life, resilience, and local spending power.
Figure 6.6 - Housing and Transportation Costs
Average Housing and Transportation Costs
(Percent of Income)
• Housing
• Transportation
• Remaining
Income
f
Source: Housing and Transportation Affordability Index (H+T); htaindex.cnt.org
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Development Potential
Apple Valley's low ratio of jobs to households is not ideal, but it does indicate that there is a
ready supply of workers and consumers for expanding markets. With a sizeable population, a
large trade area, and a large site prioritized for mixed business and health care services, Apple
Valley is an ideal location for major medical groups which desire to have offices close to their
customers. There are successful hospitals in other suburban communities such as Maple Grove
and Woodbury, but unlike Apple Valley, neither of these communities is located within 15
minutes of the international airport or the Mall of America. To maximize this potential, the City
may need to leverage its financial resources and
increase regulatory flexibility in pursuing job creation
and higher -value development. For example, the City
will likely need to offer financial incentives, such as tax
increment financing, in order to facilitate development
for Orchard Place.
Redevelopment Potential
With its sizeable population, large
trade area, robust highway
system, and Orchard Place Master
Plan, Apple Valley is the ideal
location for a medical hub in the
south metro.
The City continues to support and encourage the redevelopment of underutilized sites.
Redevelopment is largely a market-driven process. The overall building supply is physically
sound and economically viable at this time. In the short-term, the market may bypass the area
needing redevelopment. However, there are some vacant and underutilized
commercial/industrial sites with the opportunity for reuse, and the market will grow as original
structures continue to age and other preferred growth sites are used up.
The Comprehensive Plan does not identify specific parcels for redevelopment. However,
redevelopment and adaptive reuse will be encouraged within the Downtown over the life of this
plan. The level of City involvement in the redevelopment process will depend on the level of
opportunity/need, available capital, the role of private investment, and the City's ability to
acquire available properties or otherwise influence redevelopment through public-private
partnerships. Most previous redevelopment has been on single or small groups of parcels. The
City may find the need to consider a change to a broader area where necessary.
Table 6.2 summarizes some of the pros and cons of redevelopment versus greenfield
development.
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Table 6.2: Redevelopment Considerations (Pros and Cons)
Redevelopment Pros
Redevelopment Cons
Keeping existing land uses viable helps
sustain neighborhood property values.
Physically or functionally obsolete buildings
can produce a cycle of disinvestment.
Redevelopment generally improves
community aesthetic.
Older sites face the need for environmental
remediation. Old buildings may have
asbestos or other hazardous materials that
require special treatment. Certain
commercial and industrial businesses may
have allowed pollutants to enter the soil.
Adapting/expanding existing roads and
utilities can potentially be more cost-
effective than new construction.
Redevelopment sites may have greater site
preparation costs, such as demolition,
regrading, and environmental review.
Adapting or replacing older buildings and
infrastructure provides an opportunity to
improve energy efficiency and upgrade
roads and utilities.
Redevelopment often requires the
assembly or division of existing parcels,
involving multiple property owners with
individual interests.
By repurposing sites, redevelopment
conserves land resources for other uses.
Existing structures and infrastructure may
limit flexibility to repurpose the site.
Increased density at key Downtown nodes
supports community objectives for
economic development, transportation,
and land use.
Elevated property values may exacerbate
housing affordability problems, increasing
burden on low-income groups.
Some successful examples of recent market-driven redevelopment include:
• Fischer Market Place (northeast corner of Galaxie Avenue and County Road 42) was
developed on a reclaimed gravel mine.
• The Cobblestone Lake development (northwest corner of County Road 46 and Diamond
Path) was developed on a reclaimed gravel mine.
• The Apple Valley Chrysler site (southwest quadrant of Galaxie Avenue and County Road
42) was replaced with a CVS Pharmacy and M&I Bank.
• Cedar Marketplace (northeast quadrant of Cedar Avenue and 147th Street) took the
place of a nursery.
• LA Fitness (northwest corner of Galaxie Avenue and 152nd Street) was a former used
car sales lot.
• The Apple Valley Transit Station (northeast corner of Cedar Avenue and 155th Street)
was the site of a former large general retail store.
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Workforce Potential
Business development and retention is one piece of the economic development strategy, which
focuses on increasing the supply of well -paying jobs in the community. Those jobs must be filled
by a skilled and talented workforce. Apple Valley can develop its workforce by strengthening its
skills and expanding the labor pool through the attraction and retention of talented workers.
Workforce development is often facilitated through public-private initiative. A good example is
Uponor, one of the largest employers in the city. Starting wage at Uponor is $17/hour; average
hourly wage is $33. The company employs 650 workers, having doubled its staff in the last few
years. This expansion was partially enabled by an apprenticeship program designed to recruit,
train, and retain maintenance technicians, addressing the shortage of skilled labor in a
competitive economic environment. The program was created through a partnership with the
State.
One of the largest employers in Apple Valley, Uponor partnered with State and local organizations to develop its apprenticeship program.
The 2017 Minnesota Manufacturing Awards recognized the business as best in class.
This example of workforce development used a supply -based strategy — it created a supply of
readymade workers to match a skillset in demand. Demand -based approaches to economic
development are also beneficial. For example, in addition to recruiting and training labor to
match them to existing jobs or anticipated jobs, Apple Valley can improve local workforce
retention by targeting industries that match the skills and abilities of its existing workforce. A
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large percentage of educated workers leave the city for work each day because the employment
opportunities in Apple Valley don't match their skillset. Recruiting new industry and services
would help satisfy this potential. Periodic surveys of local businesses and workers can help the
City better understand local worker skillsets and industry needs.
Image/Identity
The image and identity of Apple Valley are small but important elements of economic
development. An identifiable positive image can help Apple Valley attract residents, businesses,
and visitors in a competitive marketplace. Distinctive signs and entry monuments signal to
people that they have entered Apple Valley. Entry markers improve community name
recognition, send a welcoming message, and offer an indication of community pride.
Signage can also be used to identify commercial districts and neighborhoods. Subdivisions and
shopping centers frequently use signs to create place recognition. The City uses consistent
signage to identify parks and trails. The City has also used corner monuments and enhanced
streetscaping to help identify the Ring Route. These features will be extended to the expanded
Ring Route. The Ring Route shows a recognition of the importance of public actions to create
community identity. The distinctive streetscape improvements help define Downtown. The City
will continue to enhance the Ring Route monuments and streetscape and will keep them in
scale with the higher density development that is sought for Downtown.
The City has committed to a vision of promoting mixed-use development in the Central Village
area of Downtown. Furthermore, development of the area's image is necessary to help achieve
a unique identify for this area.
Investments in image and identity are small pieces in a broader puzzle of promoting Apple
Valley to businesses and residents. The City will continue to work to create a positive and
memorable image of Apple Valley.
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Image is a key component of the economic development strategy. Enhanced streetscaping, monuments, and signage help create a sense
of place and distinguish important nodes and corridors.
Goals and Policies
Economic Development Goals
• Activate the Comprehensive Plan to ensure that Apple Valley has an appropriate mix of
development types and an adequate supply of land to secure new business investments
consistent with the city's vision.
• Retain current businesses and assist companies with expansion where appropriate.
• Attract new employers which pay above the area's median income.
• Maintain and improve the infrastructure system (transportation, utilities and
telecommunications) to meet the needs of current businesses and facilitate future
growth.
• Maintain a labor force that fulfills the needs of business and industry and supports
business development.
• Provide a balanced supply of housing opportunities that meets the needs of current and
prospective workers, from affordable rental units to high-end housing.
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• Continue to build strong working relationships with the Apple Valley Chamber of
Commerce, Dakota County Community Development Agency, Dakota Future and other
entities with shared interest in economic development and redevelopment.
• Work with property owners to address unique development challenges including the
maintenance, revitalization, and redevelopment of existing buildings and parking lots.
• Take advantage of opportunities to use public improvements and private development to
enhance the image and identity of Apple Valley.
• Foster private investment and economic activity that supports sustainability and
resiliency objectives.
• Support development of regional industry clusters with a focus on Apple Valley.
• Develop the mixed business campus on Orchard Place to improve the jobs/housing
balance.
• Take advantage of the mixed business campus on Orchard Place to demonstrate energy
efficiency objectives by incorporating renewable/local energy sources, such as solar or
biomass.
Economic Development Policies
The City seeks to achieve its economic development goals through application of the following
policies:
• Actively investigate and pursue opportunities to attract a hospital and other medical and
health care businesses to Apple Valley.
• Actively investigate and pursue opportunities to attract businesses that create jobs with
incomes that can sustain a family.
• Work to attract businesses that will bring high-quality development, expansion of the
property tax base, and will fit into the overall market desires and land use plan of Apple
Valley.
• Periodically review and amend if necessary the Comprehensive Plan to ensure that an
adequate allocation of land resources are planned for employment -producing
development and that those designations can be supported by the marketplace.
• Encourage and facilitate infill commercial, industrial, and retail development on
remaining vacant parcels to ensure maximum efficiency of land use.
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• Encourage and facilitate redevelopment of underutilized or distressed properties into
viable commercial, industrial, or retail developments by working with property owners
and interested developers.
• Create a medical campus district to encourage and facilitate development of medically
related uses in certain areas.
• Work with local businesses and industries to ensure needs for expansion and
development are adequately met and maintain an open line of communication with the
business community.
• Work with local businesses, Dakota County, and the Minnesota Transit Authority to
provide transit services that support the economic development goals of Apple Valley.
• Encourage and promote the development of advanced, state-of-the-art
telecommunication technology to and within Apple Valley.
• Work with service providers to ensure adequate supplies and reliable distribution
systems for electricity and natural gas.
• Pursue ways to streamline the development approval process, while still maintaining
high quality development standards.
• Review new and innovative economic development incentives for application in Apple
Valley.
Implementation
Figure 6.7 shows the overall structure of the Economic Development Strategy. The top of the
pyramid represents the highest achievements sought. The base of the pyramid represents the
foundational work that is needed to succeed. Much of this work, such as developing municipal
networks and evaluating resources, is a recursive part of the economic development process.
Other items, such as updating City policy or a Downtown Master Plan, require greater effort, but
would likely have to be addressed only once during the 20 -year planning horizon. The highest
goal is to attract new business and industry to Orchard Place and Downtown. However, Apple
Valley recognizes that the framework for sustainable growth emerges from within. Retaining
existing businesses and workforce talent is vital to demonstrate local potential to prospective
employers. Developing within established and emerging clusters will help solidify the economic
base.
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Figure 6.7: Economic Development Strategy
Evaluate
Coordinate
Promote
Prepare
Grow
Attract Targe
specialty user
Retain and expand
existing businesses
and workforce
Incentivize private investment
Market opportunities for
development and redevelopment
Provide connective infrastructure to
support economic activity
Update master plans for Orchard Place and Downtown
Define supportive ordinances and guidelines for
land use, design, and economic development
Assess market trends, local data, municipal
resources, and development opportunities
Develop soft capital; build partnerships with regional developers, businesses, and institutions
Extending the Strategic Plan
This chapter introduced six core strategies for economic development. To summarize, they are:
• Attract large employers
• Unify the Downtown
• Reinvest in Downtown
• Develop connections within the Twin Cities metro and beyond
• Support STEM -related businesses and workforce development
• Develop economic resilience
The following material expands on these themes.
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1. Attract large employers primarily in the designated Mixed Business Campus area
The biggest economic challenge for Apple Valley is to
increase the number of local jobs — specifically, to
improve the jobs/household ratio. It is not uncommon
for a metropolitan economy to produce clusters of
employment that benefit some communities more
than others, especially in suburban areas, resulting in
a regional jobs/housing imbalance and complex
commuting patterns. Because there are regional forces
through intergovernmental collaboration as much as
communities.
The economic potential of
development proposals must be
evaluated based on the number of
jobs that businesses create and the
wages they provide.
at work, Apple Valley will benefit
through competition with other
Potential economic development opportunities must be evaluated based on the number of jobs
they create — both directly and indirectly — and the wages they provide. The amount of public
incentives, if they are used to attract new employers or retain existing employers, should reflect
these factors. The City will target employers which pay above area median income, especially
businesses that are compatible with existing industry clusters or which represent emerging
technologies.
In the near-term, the City will work to develop relationships with commercial, office, and industry
partners in the community. Conducting periodic meetings with the largest employers will help
the City identify opportunities and threats to its existing jobs base and develop local
partnerships. This will help the City improve educational programs, such as that used by
Uponor, to meet industry needs. Another strategy is to expand local employment data, and the
application of data, to monitor and communicate characteristics of the municipal workforce and
local employers. The QCEW provides detailed data regarding the types of jobs that are located
within a geography, but not the jobs which are held by the population of that geography. A
survey of residents would give the City a clearer picture of workforce skills and help the City
track employment characteristics. It could also be used to demonstrate local demand for certain
industries and cultivate jobs training programs.
Orchard Place
The long-term goal is to develop Orchard Place as a mixed -business employment center. The
City will continue to develop ancillary amenities that are attractive to businesses. Strong
systems of trails, transit, and parks provide a solid foundation from which to build. The Orchard
Place master plan encapsulates this strategy by guiding ample acreages for open space, water
features, and pedestrian connections, supported by a network of great streets. Careful attention
to preliminary design and promotion of the plan will attract a large specialty business to the site.
This business will anchor the development and attract supportive businesses.
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The Orchard Place concept plan guides approximately 165 acres for the Mixed Business
Campus and 40 acres for supportive commercial. These figures do not include acreage that is
designated for rights-of-way, open space, or ponds. Based on historical development within the
Metropolitan area, it is suggested that at least 40 acres of the Mixed Business Campus be
considered for a hospital and medical office area. The Orchard Place concept plan guides
approximately 50 acres for a medical corporate campus located in the northeast quadrant of
Johnny Cake Ridge Road and 155th Parkway. Adjacent tracts are illustrated for potential
medical -related uses, office, hotel, and commercial/industrial.
Utilizing FAR to guide development and model development intensity
One guiding principle for development intensity is floor area ratio (FAR). Floor -area ratio guides
intensity by limiting the amount of total floor space in all buildings on a given site to a specified
fraction of the buildable area. Within these parameters, developers maintain some flexibility to
adjust building height and bulk (Figure 6.8). Intensity increases with more building space and
higher FAR.
Figure 6.8: FAR graphic
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FAR standards regulate density while giving developers greater design flexibility. The City's FAR guidelines help it project employment
density, assess site impacts, and address traffic needs for future development.
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Employment potential is correlated to FAR, since jobs are traditionally measured as the number
of employees per unit building area. The conceptual plan for Orchard Place includes a range of
FAR goals for each land use. Table 6.2 summarizes these goals.
Table 6.2: FAR goals for Orchard Place
Use
FAR Range
Corporate Campus
0.25 to 0.35
Medical
0.25 to 0.40
Office
0.25 to 0.35
Industrial
0.30 to 0.45
Commercial Retail
0.18 to 0.30
Hotel
0.35 to 0.50
As of March 2017, the concept plan for Orchard Place retains flexibility for further refinement.
The precise acreage for each use and the intensity of development will be further evaluated in
cooperation with the land owner and the project developer. In the meantime, these numbers are
useful for conceptualizing a range of intensity scenarios, refining economic development
objectives, and developing an understanding of likely traffic impacts and utility needs. If, for
example, a 50 -acre corporate campus were constructed to 0.35 FAR, there would be 17.5 acres
of floor space, or approximately 762,300 square feet. A typical hospital might staff 2.6
employees per 1,000 square feet. Thus, a 50 -acre hospital site might support a staff of roughly
1,980 employees. As actual development potential is determined, Apple Valley can adjust its
FAR and/or acreage assumptions accordingly to promote the most efficient use of the Fischer
site.
The Metropolitan Council projects 17,100 jobs in 2040, with only 1,300 additional jobs from
2020 to 2040. This forecast may prove to be an underestimate of both need and opportunity.
Instead, Apple Valley would like to increase employment to 19,000 jobs by 2040. It is estimated
that the Mixed Business Campus yields about 75 percent of the growth in jobs. Upon completion
of the Mixed Business Campus, about 25 percent of all jobs in the city would be located there.
Implementing the FAR framework will help the City achieve the desired development intensity —
and associated employment growth — for Orchard Place and other sites. If a portion of the site is
developed at lower -than -average FAR, then the City knows that the remaining space must be
developed at a higher intensity to produce the desired jobs outcome. The present marketplace
readily builds at .25 to .30 FAR. Building at higher intensities may require the application of
financial incentives and/or modifications to City code.
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2. Unify Downtown by taking advantage of future redevelopment opportunities, using Cedar
Avenue and County Road 42 and transit system improvements as catalysts.
Downtown is the engine of Apple Valley's economy. Improvements that unify Downtown,
support development intensity, and enhance connectivity will improve economic potential.
Future redevelopment opportunities can be supported by transit and other transportation
improvements in the Cedar Avenue corridor and the County Road 42 corridor. The Cedar
Avenue Transitway Implementation Plan guides improvements to the Red Line from 2010 to
2040, with five stages for development. Stage 1 was completed in 2013 when BRT service was
extended on TH 77/Cedar Avenue, connecting Apple Valley to the Mall of America transit
station. Stage 2 is programmed for 2015-2020 and calls for expansion of the Apple Valley transit
station and bicycle and pedestrian improvements. Stage 3 is programmed for 2020-2025, and
calls for new a station at Palomino Drive with potential park and ride expansion. Stages 4 and 5
are scheduled for completion by 2040, with extension to Lakeville.
The City is targeting land use and transportation improvements that unify the Downtown and
mitigate the barriers presented by Cedar Avenue and County Road 42. Enhanced pedestrian
connections across these thoroughfares, coupled with stronger connections to transit, will serve
this goal. The addition of bus rapid transit to the transportation network has already supported
several development projects in the Cedar Avenue transitway. However, significant
opportunities remain, especially in the four major quadrants surrounding the intersection of
Cedar Avenue and County Road 42. Momentum from transit -supportive development and the
extension of the Red Line south to Lakeville will eventually influence these superblocks as well.
Lid Concept
A 2008 study of transit -oriented development introduced a "lid" concept for the intersection of
the Cedar Avenue and County Road 42 (See Chapter 3). The concept envisions that a short
segment of Cedar Avenue is depressed at County Road 42, a "lid" is added over the
intersection, and within a quarter mile of that intersection, the four quadrants of the Downtown
are connected with an at -grade "Cedar Green". This idea would unify the Downtown, but it could
also be prohibitively expensive. Further, it would not be practical to impose a substantial, grade -
separated pedestrian improvement at the intersection before improvements are made to
improve walkability and pedestrian access to the surrounding superblocks. First, the
superblocks should be broken up by adapting the street system, with some redevelopment/infill
taking place. Then, if these areas have been infused with new activity and investment, a
capstone improvement such as the "lid" could potentially be justifiable.
Downtown Plan
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A structured plan is critical to achieve unified
development. Updating the downtown master plan
would help coordinate Downtown's transition with
integrated development and infrastructure
improvements. This plan would expand on the
A cohesive Downtown Master Plan
is a critical tool for guiding transition
in a unified manner.
Downtown Design guidelines and other concepts presented here, and would bring key
landowners in the Cedar Ave/County Road 42 corridors, potential developers, and other
stakeholders to the table.
Reinvest in Downtown, adapting to changing retail trends
For several years, the City has prioritized positive relationship -building with businesses and has
selectively used financial loan products, tax -increment and revenue bond resources to support
new development. This will continue and intensify as the competition for development increases
and various financial arrangements are needed to close financial gaps in the development
process. Some strategies include:
• Financial incentives such as grants, loans, and regional investment funds, often in
partnership with other agencies such as the State of Minnesota and the Dakota County
Community Development Agency.
• Continue the robust working relationship with the Apple Valley Chamber of Commerce.
• Provide support to small businesses, entrepreneurs, and new entrants in the
marketplace with the creation of business plans and marketing plans. Dakota County
Community Technical College and the Metropolitan Consortium of Community
Developers are examples of supporting partners, along with the City.
• Local tax incentives
Tax -increment Financing (TIF)
Tax -increment financing (TIF) can be used to support land assembly and infrastructure
installation to prepare for higher -intensity development. A TIF district is financed by capitalizing
the gains in property tax value that are anticipated to occur through development. The base tax
which is levied before creation of the TIF district is still directed to the general fund, but the
increment is leveraged to finance debt over a 20 -year period. In practice, the City should
demonstrate that this increment would not occur "but for" the creation of the district, in order to
dispel concerns that debt financing would potentially siphon from municipal reserves. When a
TIF district is closed, total property taxes (both the increment and the base tax values) are
reallocated to the general fund. As a tool that initializes development and ultimately expands the
tax base, TIF is a powerful resource to stimulate local economic growth.
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Downtown Redevelopment Opportunities
As Downtown ages, there will be opportunities to redevelop or adaptively reuse existing
structures. In most cases, it is far more effective to reuse or adapt vacant big box structures,
rather than demolish them and reconstruct the site, which requires significant energy and
investment. For example, vacant big -box commercial buildings could be repurposed for
community -serving uses, such as libraries, medical clinics, schools, or fitness centers. With
additional investment and more substantial retrofits, other structures could be adapted to
support additional stories and accommodate other uses, such as a large data center. Access to
the Red Line would support the development of more jobs in the vicinity of Cedar Avenue.
The Downtown Design Guidelines advocate breaking up the superblocks around the
intersection of Cedar Avenue and County Road 42. To facilitate this type of transformation, the
City will have to examine its zoning code and consider amending policies which have produced
the type of Downtown commercial development which actively discourages walking and
bicycling, such as deep setbacks, wide streets, wide intersection spacing, separated uses, and
liberal parking standards.
Surface Parking
Figure 6.8 depicts large areas of surface parking in
Downtown. There appears to be an excess of
underutilized space, representing an opportunity for
economic development. Most of these lots are
associated with large chain retailers. Although there are substantial challenges to working with
national chains, which usually have their own parking and development standards, there are still
opportunities to retrofit surface parking by working creatively within the market. For example,
owners of underperforming strip malls or big box sites could be encouraged to lease the outer
edges of their parking lots to smaller retailers, which would increase their revenue and extend
the presence of commercial activity closer to street. Alternatively, some property could be
converted for solar energy production. The Great Plains Institute's energy assessment notes
that surface parking lots in Downtown receive high insolation and could be adapted to produce
efficient solar energy. The extent to which this would be a desirable use of Downtown property
is debatable; nevertheless, it illustrates the potential to adapt parking areas for a variety of uses.
Beyond adaption, there may be opportunities to physically remove parking to daylight streams
or natural wetlands, improving storm water retention.
Excess parking is an opportunity for
redevelopment.
These adaptations may not be implementable for years. In the short term, however, the City
should conduct a parking study that calculates acreages, investigates daily use, estimates the
economic potential for these areas based on regional market dynamics, and identifies some
potential sites that could be retrofitted in the short-term. This examination could lead to a
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broader effort to update a master plan for Downtown. The Downtown Design Guidelines and
conceptual presented in this plan effectively plan for "anticipatory" retroffiting. Anticipatory
planning can be extended by laying out surface lots in block configuration, conceptualizing
future building sites, and identifying conceptual collector lanes with street trees and utilities
between rows of parking.
Figure 6.8: Downtown Parking Areas
4. Develop connections to the Twin Cities metro and beyond, using advances in communication
technology, transit.
The City has long monitored the evolution of internet services in communities within and outside
of Dakota County. There are multiple approaches based on wi-fi, (faster and more efficient),
and fiber optic services. A discussion of this topic 10 years ago would have underestimated
future systems already realized. The same will be true in the future, to 2040. The advantage for
the City is to utilize all three in combination to meet user needs for the transfer of voice, video,
and data. As development and redevelopment occur, it will be important to integrate the most
cost-effective and efficient systems to remain competitive.
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The Metropolitan Council's 2040 transit system envisions the Cedar Corridor as a critical north -
south route, with Apple Valley a key node between Lakeville and the Mall of America station.
The opportunities for the City resulting from the implementation of bus rapid transit (BRT)
continue to be expanded. A Dakota County study from 2015 found that the Red Line triggered
investment of $273 million in 38 projects within 1/2 mile of the Cedar Avenue corridor, beginning
in 2010 with anticipation of transit's arrival. A review of land uses indicates that there are over
6,000 housing units and an estimated 17,000 Apple Valley residents living within 1/2 mile of the
corridor. In addition, there are over 170 commercial parcels with a total property value greater
than $500 million. Figure 3.5 in the Community Context Chapter depicts the estimated value of
parcel structures as a fraction of total property value. This is one measure of property utilization,
which can be useful in identifying potential for redevelopment and adaptive reuse.
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Leveraging regional transit investments is an important piece of the economic development strategy.
Goals/strategies that will make transit a success include:
• Good system design (transit must be convenient even during bad weather; transit must
be supported by adequate parking and a dense and well-connected mixture of
residential and employment -based uses)
• Linking key activity areas and population centers
• Moving riders quickly and efficiently
• Creating an experience people want to repeat
• Developing routes and stations to shape adjacent growth and draw investment
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• Enhancing multimodal connections to/from transit line ("last -mile" connections);
pedestrian connections across Cedar Avenue and to adjacent neighborhoods and
businesses must be safe and convenient
• Augmenting the regional system through local transit connections
5. Attract businesses focused on science, technology, engineering, and math (STEM) to build a
well-educated and well -compensated workforce.
The Federal Americans Competitiveness and Workforce Improvement Act of 1998 established
STEM as the 21st century response to competitiveness. The National Science Foundation (NSF)
encouraged academic institutions in the United States to increase the number of students
nationwide that receive degrees in science, technology, engineering, and mathematics. These
disciplines often support high -paying jobs in forward -thinking industries. Attracting innovative
employers will position Apple Valley's economy to remain competitive in the knowledge
economy.
With a limited number of students emerging in the workforce with STEM skillsets, the City must
be prepared to provide supportive and desirable career opportunities, as well as housing and
other amenities. Apple Valley offers the land resources and the cooperation with local owners to
locate new and expanding businesses. Furthermore, Apple Valley is already highly educated
and offers many places to live, shop, learn and recreate.
6. Develop Resilience
Resilience is an overarching theme that ties the economic development plan together. The
economic strength of Apple Valley is derived from its connections to regional, national, and
global economies. When conditions in these economies change, the City is affected. To ensure
it can withstand future shocks to its economic base, Apple Valley is focused on improving its
resilience. Apple Valley can build economic resilience by diversifying local industry, addressing
the jobs -housing imbalance, and diversifying the skillsets of its labor force. Furthermore, it can
expand and diversify its supply of energy to include a greater share of renewables and develop
its energy storage capacity.
Energy
There are substantial opportunities to improve energy efficiency in the commercial and industrial
sectors. Developing and diversifying the energy supply to incorporate more clean energy not
only improves resilience, but creates opportunities for new jobs and technical training, and
community partnerships with existing businesses and manufacturing. Energy efficiency
improvements at large industrial and commercial facilities can lead to substantial cost savings.
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The total rooftop solar resource for commercial businesses in the City is 194 megawatts, which
is equivalent to approximately 77 percent of all the electricity consumed in the city. Developing a
fraction of this resource could have a large impact. Some local businesses, such as Uponor or
Wings Financial Credit Union, may be receptive to partnerships that expand local resilience
initiatives, foster community outreach and recognition, and benefit their bottom line.
Implementing a combination of clean energy strategies for the business and residential sectors
would help Apple Valley reach its GreenStep goals and stay on track to meet Minnesota's
energy target — 50 percent GHG reduction by 2030.
In addition to solar, biomass can be used as a source
of local, renewable energy. Several schools, colleges,
and hospitals in Minnesota use wood pellets, waste
wood, and other sources of biomass to fulfill part or all
of their energy requirements. Managing organic food
waste is a huge opportunity to reduce GHG emissions
directly and create additional energy. Dakota County
is looking to require organics diversion by large
New development is an opportunity
to improve energy efficiency. The
mixed -business campus should be
designed to incorporate renewable
power sources, such as local solar
or biomass production.
generators by 2022, and plans to make curbside organics collection
proposed hospital/mixed medical campus in Orchard Place would be a large energy user that
could benefit from sourcing energy from local biomass or other renewables. A large producer of
organic food waste, the hospital system could be engineered to use captured biogas (methane
and carbon dioxide) to generate efficient energy through a combined heat and power (CHP)
system.
available by 2025. The
Local Jobs Access
Expanding the supply of local jobs increases the ability of people to live and work in Apple
Valley. Decreasing the distance between work and home reduces regional travel. Providing a
wide range of goods and services also reduces travel by enabling residents to shop locally.
When more people live, work, and play within Apple Valley, the City will improve its self-reliance
and resilience.
Land Use
Resilience is further built by diversifying land uses to support a variety of industries and by
strengthening local networks of producers, consumers, and intermediary suppliers. Expanding
the property tax base provides the City with financial resources needed to invest in services and
facilities that enhance Apple Valley's environment.
To sustain the economy, existing commercial and industrial properties need to be maintained for
viable use. As Apple Valley ages, there will be greater need to monitor the condition of existing
Imagine Apple Valley 2040
Apple
Valley
Economic Development 132
commercial structures and to promote the maintenance, enhancement, and operating efficiency
of the existing community. Deferred maintenance can have harmful effects. By promoting
property maintenance and encouraging reinvestment, Apple Valley hopes to avoid the
conditions that create blight and require more complex and expensive city intervention.
Imagine Apple Valley 2040
Apple
Valley
Economic Development 133
APPVaIIey
ITEM:
EDA MEETING DATE:
SECTION:
4.B.
May 24, 2018
Regular Agenda
Description:
Authorize Participation in an Economic Development Roundtable Between Greater MSP and
Greater Memphis
Staff Contact:
Bruce Nordquist, Economic Development Director, Al CP
Department/ Division:
Community Development Department
ACTION REQUESTED:
Authorize participation in an Economic Development roundtable between Greater MSP and
Greater Memphis.
SUMMARY:
Bill Goins, worldwide Account Manager for FedEx Healthcare Solutions has reached out to
the City of Apple Valley Mayor Mary Hamann -Roland and Bruce Nordquist, to consider
Apple Valley participation in a med tech business development roundtable in Memphis,
Tennessee. The event, scheduled for June 6, 7, 8 has 3 objectives:
1. Share information on economic development plans and strategies.
2. Discuss potential areas for cooperation by sharing FedEx distribution networks
centered in Memphis and Medtronic medical device distribution that benefits from the
network and leverages the 30,000 working in the industry in Greater MSP.
3. Explore these long term business relationships as a catalyst to attract and grow the med-
tech, med-device market in Greater MSP, specifically Apple Valley on available land in
Orchard Place.
June 6 and 8 are travel days and June 7 is an intensive day of information, demonstrations
and next step planning to grow business.
Attached is a more complete discussion provided by Bill Goins to Bruce Nordquist.
• Bruce Nordquist is available to attend.
• He compliments staff representation from DEED, City of Bloomington, Greater MSP
and the multiple city, Metropolitan Council and med-tech leaders and representatives
from our area.
• The EDA, in the Operations Fund, has budgeted for economic development missions
for the purpose of business development and seeks authorization for this specific trip.
BACKGROUND:
N/A
BUDGET IMPACT:
For budget purposes, an estimated cost of round trip airfare and two night stay is
approximately $950.00.
ATTACHMENTS:
Background Material
Nord. uist, Bruce
Subject:
From: Bill Goins
Sent: Thursday, May 3, 2018 1:40 PM
FW: An Economic Development er t Roundtable between Greater MSP
and Greater Memphis on Thursday, Jure 7th
Subject: An Economic Development Roundtable between Greater MSP and Greater Memphis on Thursday, June 7th
Good afternoon to all....
Thank you to all for your feedback and support of this economic, educational and industry development set of
discussions that are in the planning stages for this Minnesota Delegation traveling to Memphis during the first
week ofiune.
Re: rdin Peabod Hotel reservations fil: is to Mem • his and other tri • •tans toiisti s:
1) We are recommending a departure from MSP on Wednesday, Junth, (Delta has two afternoon
non-stop departures out of MSP to MEM on the 6th, of either 2:20PM or :50PM), and a return to MSP
from Memphis on Friday, June 8th, (Delta has a non-stop departure at 1 : 5 M, plus two other non -
stops on this date, one earlier and one later, to MSP). While there is the earlier non-stop flight to MSP
on Friday June 8th at 8:05AM, we are not recommending this flight, as we will be on the FedEx World
Hub Tour until approximately 1: 0AM in the morning, the night before.
If taking this early flight, could make for a very short night's sleep!
2) We have completed a contract with the Peabody Hotel in Downtown Memphis, (known for the
Peabody Ducks), reserving a block of hotel rooms for your scheduling and payment convenience,
(knowing that many on this Delegation are strictly under the Minnesota "no gift" government
rules/laws and also we are following FedEx Government Affairs policies that apply). We have a web -
link for the Peabody Hotel.
3) Regarding ground logistics/transportation while in Memphis, we are recommending the use of Uber
or taxi for the trip to the Peabody Hotel on Wednesday afternoon/evening and the same on Friday
morning's trip back to the Memphis Airport, with a Charter Shuttle Van for 20 people arranged for
during the day on Thursday, June 7th. This Charter Shuttle will include the movement of the group
during the dy ofJune 7th and also into the evening for the Flight SimulatorEcperienc nd the World
Hub Tour. if there are any individual legal or governmental issues with FedEx providing this service for
moving the group during the day ofiune 7th, please let me know.
purpose of our trip:
The Greater Minneapolis St. Paul region is a global leader in mod-tech/mod-device innovations. Greater
Memphis region is a global leader in time definite express logistics industry known as the America's
Aerotropolis.
1
The convergence of rapid growth in personalized healthcare and the demand for innovative, efficient, reliable,
timely supply chain solutions provide a unique opportunity for the two regions to explore potential economic
development opportunities.
This Roundtable provides both public and private stakeholders from both region to:
.. Share information on economic development plans/strategies;
2. Discuss potential area for cooperation;
3. Explore potential for a long term strategic relationship.
White in Memphis o Jure 7th the Delegation will focus on these key sublet :
1) A set of strategic meetings with FedEx leadership on key industry development efforts in Minnesota,
specifically focused on the Healthcare industry.
In support of a key industry such as the Med-tech/Med-device industry of Minnesota, we will highlight
that the FedEx networks span the globe, delivering to percent of the world economy.
FedEx advocates for open trade...sin a our earliest days, FedEx has built its business on
connections. We are at the nexus of the global economy and link people to possibilities around the world.
We understand that education is the key to job growth in major markets such as in Minnesota,
supporting the Healthcare industry and the hundreds of companiesthatare headquartered in this Market.
2) Discussions regarding the need for improving transportation infrastructure for economic and market
competitiveness reasons in Minnesota, ta, Tennessee and throughout the USA.
FedEx believes that sustainable transportation involves developing solutions that connect the world
responsibly and resourcefully.
Have a discussion on developing transportation solutions, including Ryprlop Technologies.
3) Debrief on the 2023 Expo bid and discuss global opportunities for a 2027 World Expo in Minnesota, that
will be focused on Health and Wellness.
With the strategic efforts focused on the theme of health and wellness, this supports the growth of a
major industry, that Minnesota is well known for.
4) The Minnesota Delegation will participate with the Memphis Chamber of Commerce regarding the
Memphis Aerotropolis framework nd to discuss the synergy of both Markets, focusing on how they could
become more closely aligned in supporting and growing both Markets.
5) The sheduling of a tour of our FedEx World Hub on Thursday night, June 7th.
The intent of this tour/experience is to better understand the FedEx Worldwide Express Operations,
along with sometime in a FedEx flight simulator.
A str te ic exam le of . tential follow-ufrom this visit b the Minnesota bele#tion:
Related to the Aerotropolis framework, there are several key factors that highlight the Minnesota and the
Memphis Markets.
Specifically Memphis has the distribution capabilities and global hub and spoke system for moving
commerce/freight, providing an order -processing cycle time window that is hard to replicate anywhere else in
the world.
At the same time, the Twin Cities has developed the "headquarters capabilities" of Marketing, R and D,
Technical capabilities and other key resource positions and skill sets of a HO community, similar to what San
Jose has become known for in the Silicon Valley.
In addition, the MSP Airport has become an excellent example of the connectivity of moving people around
the world, with non -stops to many major global markets.
We believe this will lead to a strategic discussion of all parties regarding the Aerotropolis framework including
the Minnesota Delegation, that will focus on how these two major Markets could and really do complement
each other.
2
We also believe there is currently one specific company that showcases as an excellent example of using this
theory/strategy in both Markets: Medtronic.
As we know, Medtronic has become a major Market leader in Med-tech/Med-device Industry in Minnesota,
plus, Medtronic has consolidated a major portion of their global distribution and supply chain activity in
Memphis.
If all plans come together on June 7th, we will have members f the Medtronic team, plus the Memphis
Chamber of Commerce, joining the morning session at the Peabody Hotel. We are arranging a tour of the
Medtronic Distribution Operations in the afternoon.
Further agenda details are being planned at this time and will include discussions with FedEx leadership from a
few key areas, along with presentations/discussions from members of our Minnesota Delegation and the
Memphis Chamber of Commerce.
Draft Agenda j s of this date for June 7th: The a: nda is comin. to:ether!
At this time, we are planning to start the day of June 7th with Breakfast at the Peabody at SAM, followed awed by
Welcome Remarks and Expectations for the day.
Following this, we will have a panel discussion titled: Vision for the Medical Device Industry, followed by an
opportunity for questions, answers and feedback.
After a morning break, we will have another panel discussion titled: Vision for the A rotr p lis, followed by a
question, answer and feedback session.
Over a working lunch, we will have a session titled: What is on your mind? Also, what are next steps?
After lunch, we are arranging a tour of the Medtronic Distribution Campus near the Memphis Airport.
To wrap up the afternoon, we will travel to the FedEx Express Headquarters Campus for meetings/discussions
with Senior FedEx Management.
After Dinner, r, w will enjoy an experience in a FedEx Flight Simulator and wrap up the day with a tour of the
FedEx Express World Hub Operations
Fa r_t_i_c(pAntF
From Greater MSP and Minnesota (in alphabetical order by fast names):
1. Chris Clark, President, Xcel Energy, Minnesota
2. Shawntera Hardy, Commissioner, Minnesota Department of Employment and Economic
Development
3. John Hausladen, President, Minnesota Trucking Association
4. James Hovland, Chair of the Metro Council, Transportation Advisory Board, and Mayor of Edina
5. Eric Johnson, Community Development Director, City of Bloomington
6. Michael Langley, CEO of Greater MSP
7. David Loehr, Senior Director, primary architect behind the Expo 2023 efforts and designer of the
plans for the Minnesota efforts for 2027, (continuing the theme of Health and Wellness)
8. Shaye Mandl, CEO of Medical Alley
9. Chuck Michael, Consulting Engineer, Global Design and Construction, Hyperloop Technologies
10. Mark Ritchie, Former Minnesota Secretary of State, leading the Expo 2027 efforts
11. Kalli Slavik, Mayor of Plymouth
12. Alene Tchourumoff, Chair, Metropolitan Council
13. Nick Thompson, Director, Metropolitan Transportation Services, Met Council
14. Bret Weiss, President/CEO, WSB & Associates
15. Gene Winstead, Mayor of Bloomington and strong supporter of the Minnesota Bid Committee for
World Expo efforts
3
16. Charlie Zelle, Commissioner, Minnesota Department Transportation
Invitees from Greater Memphis and Tennessee:
1. Bob Rolfe, Commissioner, Tennessee Department of Economic and Community Development
2. Jim Strickland, Mayor Memphis City
3. Berlin Boyd, Chairman of Memphis City Council
4. Mark Luttrell, Mayor Shelby County
5. Heidi Shafer, Chair Shelby County Commission
6. Keith McDonald, Mayor of Bartlett
7. John Threadgill, President of Bartlett Area Chamber of Commerce
B. Phil Trenary, President of Greater Memphis Chamber
9. Scott Brockman, President Memphis Shelby County Airport Authority
10. Reid Dulberger, President Shelby County Economic Development Growth Engine
11. Steve Bares, President of Memphis Bioworks Foundation
Please let me know of questions or any concerns, and we look forward to being able to "roll out the red
carpet' for all of you in Memphis for this upcoming visit in June!
Alt the best,
Bill
William E Goins
Worldwide Account Manager
FedEx Healthcare Solutions
4