Lakeville reports $258 million in 2024 building permits, outlines business retention push

Lakeville City officials on Jan. 21 told the council the city saw almost $258,000,000 in building permit activity in 2024, with private-sector commercial investment exceeding $75,100,000 and residential permit valuation accounting for roughly $155,800,000 of the total.

The city’s community development director, identified in the meeting as the presenter, said the largest single permit was for an RL cold storage project valued at $32,000,000 and noted other commercial additions including medical-office expansions and new restaurants. The city reported 285 single-family permits, 100 detached townhomes, 49 attached townhomes and an 89-unit stacked apartment building in 2024.

The figures matter because they show continued residential and commercial growth in Lakeville and provide the tax and jobs base that funds city services. "We've experienced a lot of development activity this year with almost $258,000,000 worth of building permit activity," the presenter said during the council meeting.

City staff told the council residential construction accounted for about 60% of permit valuation. The median home price cited was $451,150; the city reported 25,881 households and an average household size of 2.9 persons. Employment in the community was reported at 21,852 (quarter 2 data) and the local unemployment rate was given as 2.4%.

Officials highlighted several specific projects and trends: the RL cold storage groundbreaking; a remodeled industrial pilot plant being repurposed for a dog-food business; Midwest ENT Specialists breaking ground on a 14,000-square-foot facility; and expansion of medical-office space including an approximately 100,000-square-foot Allina/MNGI digestive health building. City staff also pointed out institutional projects such as Grand Prairie Park construction, which will add a grandstand, dugouts, pickleball courts and a cricket pitch.

Staff said the city is focusing on business retention and expansion. A new program will pair the economic development commission, city staff and the Lakeville Area Chamber of Commerce to visit businesses regularly; staff said the goal is to visit groups of four businesses each month and report quarterly to the commission. The presenter said the city also plans to use CDBG (Community Development Block Grant) funding to update a 2018 downtown development guide and to complete an industry cluster analysis.

The presenter said the city completed the first full year of its rental registration program, with more than 650 rental properties registered and 61% of those listed as single-family homes. The ordinance was adopted in late 2023 and staff indicated registration is free and that an amendment now requires a Minnesota-based rental manager for registered properties.

Council members thanked staff for the report and signaled support for the business retention visits and continued outreach to brokers and developers.

Ending: Staff said they will continue quarterly reporting on the business retention visits and will update employment data before the state-of-the-city presentation.