Industrial Sector Is Strong

The Industrial sector of the real estate market is improving and showing signs of strength. Industrail properties are being leased and many are being sold or are under purchase agreement.

Clients in this sector have realized that there are some great values in properties and that the financing terms are quite affordable.

Many clients that we talk to report that theri business is good- which has given them the confidence to move forward with expansion of their space.

So if you are considering expanding…now is a great time. See our web site for property options- www.cerron.com

SBA 504 Refinance Program Modification – Maturities Beyond 12/31/2012

On March 30th we received notification from SPEDCO stating that the SBA has published a Press Release announcing it is lifting the date limitation on the 504 Loan Program temporary refinancing guidelines enacted under the Small Business Jobs Act of 2010 allowing for the refinance of existing eligible non-SBA debt. Initially the Program was restricted to loans maturing no later than December 31, 2012. With publication in the Federal Register, which is expected by April 6, 2011, SBA will begin accepting applications from small business owners with eligible debt maturing after December 31, 2012 for the refinance of the debt using the 504 Loan Program. The temporary refinancing guidelines are in effect through Sept. 27, 2012.

SPEDCO said they have received questions from some lenders based on a misunderstanding of one of the current refinance guidelines and would like to take this opportunity to make a clarification. Existing debt with a federal guarantee (for example 504, 7(a) or USDA) is not eligible to be refinanced using the temporary guidelines. Non-guaranteed conventional debt that meet the guidelines is eligible.

Here is a link to the SBA website for additional information http://www.sba.gov/

Contact APPRO Development to learn more about financial planning for your commercial, industrial, or manufacturing project. As a design build general contractor, we can help with your expansion plans!

Important information regarding electrical equipment and installation for Lakeville MN.

It is very important as a business owner to understand the new codes that Lakeville has put into place regarding electrical for equipment. Please review the link below for the latest code update.

electrical_20110330114953

As a General Contractor for the last 20 plus years APPRO Development has worked closely with the city of Lakeville to make sure our projects meet these general requirements. Please contact Appro for more information.

Safety should not be a goal but a requirement.

Many contractors will be eager to get construction projects waiting for the spring thaw off and running with the warmer temperatures approaching. It is very important to keep safety in the front of everybody’s minds.

Review your safety policies and talk with your employees and subcontractors about establishing a safe plan of action for every task they are to perform. Remind them to take into consideration the tasks that are happening around them. These are too often overlooked and can result in serious accidents. If you are elevated and working on a lift or ladder check for other traffic around you. It is good practice to set up some cones and caution tape around you to make yourself more visible to others. These extra steps only take a few minutes to perform and can be the difference between a good day at work or a trip to the ER.

As a business owner looking to find a good contractor with a proven safety record look no further than APPRO Development. It is our belief that “No Task Is More Important Than A Workers Health And Safety” and “If A Task Cannot Be Done Safely It Will Not Be Done”. It is these beliefs and the policies that we have put into place that keep our employees and subcontractors protected from accident and injury.

Winter Recreation in Lakeville

The City of Lakeville does a great job of organizing & posting up coming events. Listed below are some of the outdoor/indoor recreation schedules, maps and up coming events for the month of March.

Cross country ski and snowmobile trails

Lakeville Sno Trackers maintains the cross country ski trails in Ritter Farm Park and snowmobile trails throughout the City. Visit their website for current trail conditions.

For more information, contact Parks & Recreation at (952) 985-4608.

Ritter Farm Park map: Shows both cross country ski and snowmobile trails within the park

Snowmobile map: Shows current snowmobile trails throughout Lakeville

Lakeville Sno Trackers club information

Snowshoe rental

The City of Lakeville has snowshoes available for rent in three sizes:

  • Up to 150 lbs.
  • Up to 200 lbs.
  • Up to 275 lbs.

$3 per pair/per day
3-day minimum on weekends
$75 deposit required per pair

Pick up and return snowshoes at Lakeville City Hall, 20195 Holyoke Avenue, Monday through Friday, 8 a.m.-4:30 p.m.

Call Parks & Recreation at (952) 985-4600 to reserve snowshoes or for more information and availability.

Indoor Activities

Adaptive Art: Pottery- Saturday, March 05 2011, 9:30am – 11:00am

Stroke of Genius Pottery- Sunday, March 06 2011, 1:00pm – 4:00pm

Storytime Art- Monday, March 07 2011, 9:30am – 11:00am

Art Night Out: Handpainted Ceramic Wine & Dine Tray- Wednesday, March 16 2011, 6:30pm – 8:30pm

Adult Dance Class: Foxtrot, Waltz, Nightclub- Friday, March 18 2011

Mini Masters for Homeschooled Students- Friday, March 18 2011, 9:00am – 10:30am

Pottery for Homeschooled Students- Friday, March 18 2011, 10:45am – 12:15pm

Polymer Clay Jewelry- Saturday, March 19 2011, 9:00am – 12:00pm

Triathlon Swim Training- Sunday, March 20 2011, 2:00pm – 4:00pm

Lakeville Liquors Wine Academy: Wines of Argentina- Wednesday, March 23, 2011 7:00pm-9:00pm

Don’t Waste A Good Crisis!

local government innovation

Now that we finally have an official governor, it’s time to get down to business and address the looming $6 billion deficit, or some would term spending problem our state is facing. Our state revenues are projected to increase 5%, but our spending is projected to go up 23% if you take out the education payment shift. Certainly status quo is not an option. Our legislators need to prioritize their spending and look at delivering services differently. Now is the time for reform to lead our state and nation to the next level. Many feel that reform means more regulation, but I’d argue the exact opposite. We need to focus more on results—the bottom line, the goal. Let the people closest to the problem the freedom to figure it out. Give flexibility and incentives to do the job better. I am currently on a task force that is working on a “Guide to Innovation for Local Governments”. Here is the 5 step process that I think can be applied to anything:

1) Identify the problem (what is the goal?)

2) Determine the measurable outcome

3) Investigate why traditional methods are not working

4) Identify alternative theories or assumptions to address the problem

5) Innovate and redesign

Seems pretty simple, right? It would be if we weren’t creatures of habit and resistant to change. I encourage you to be the change you want yourself to be. Have the courage to look at things differently.

Our legislators do not have an easy job. Most of the items on the table you are not going to like and we will all be affected. However, this change is necessary. Let’s make this an opportunity to do things better by prioritizing government’s role and allowing creativity to innovate.

Thinking of remodeling!

It is very important as a Minnesota General Contractor to understand the impact a winter remodeling construction can have on an office remodeling project. Construction costs are usually lower during the winter months. This can save your companies construction project time and money during the winter construction.

There are many other ways to save cost on remodeling projects. These costs can include multiple bids in all construction categories such as electrical, HVAC, plumbing, drywall, painting, ect;. Remodeling doesn’t always have to be the office it can also include warehouse and production areas.

As a General Contractor for the last 20 plus years APPRO Development has remodeled many office, warehouse and production areas and passed along savings to the building owners. Call us today at APPRO Development if you plan to remodel, build or add on this winter.

It is never too early to start the planning process for your construction project.

Whether you are purchasing land to build a new facility or addition or improving your existing facilities there are many milestones that need to be met to successfully complete your project on time and on budget. The average land purchase and construction project can take between eight and twenty two months to complete and unless you have chosen a General Contractor that has extensive experience and expertise in the building process you will find yourself in an unorganized mess that leads to bad decision making and costly oversights.

At APPRO Development we take great pride in our ability to map out the entire construction process from initial client meetings and site searches to construction documents through post construction warranty. This key event schedule lays out when key decisions need to be made and milestones completed. It is this commitment to communication and attention to detail that allows us to deliver our projects “On Time, On Budget – No Surprises”. If this is the commitment you are looking for explore our website to see the full range of Architectural and Construction Management services we have to offer.

2010 Lakeville Manufacturers Appreciation Reception

Lakeville, Minnesota manufacturers – don’t forget to attend the Manufacturers Appreciation Reception hosted by the City of Lakeville on Tuesday, October 26th from 4:30 to 6:30 p.m. at the Holiday Inn & Suites. It’s a great opportunity to meet other members of the Lakeville manufacturing community.

You should have received your invitation in the mail last week. If you haven’t sent in your RSVP, please do so or contact Penny Brevig at the City of Lakeville – 952-985-4420 to confirm your attendance.

Contact APPRO Development for all your commercial, industrial, or manufacturing projects. As a design build general contractor, we can help with your new facility, remodel, or expansion plans.

Small Business Certainty is Key to Economic Recovery

I recently attended a real estate symposium with Dr. Mark Dotzour, the Chief Economist and Director of Research at Texas A & M College. Here are some of the basic points he discussed regarding the economy and commercial real estate:

The Good News

Corporate profits are up

Personal expenditures are up

Household debt is declining

General retail same store sales are up

A higher percentage of corporations plan to hire

Manufacturing new orders are up

Gross private domestic investment is up

Problem:

1) Small businesses are reluctant to hire due to uncertainty

2) Bank crisis has not been solved

3) We are in the biggest credit contraction since the depression

4) There is a lot of pent up demand from businesses and consumers that have postponed decisions and are sitting on cash.

History Lesson—

“Hoover’s Maneuver”

Herbert Hoover raised taxes and tightened credit. It didn’t work well in the 30’s and if won’t work well now.

“Japanese Experience”

In 1989 the Japanese stock market and real estate bubble burst. They failed to recognize zombie loans. Twenty-One years later the Japanese stock market is 75% below peak and land values are 66% below peak.

Bad Case Scenario:

1) Congress demonizes business

2) Uncertainty of government regulation is killer to business activity

3) More government stimulus spending

4) Higher income taxes that reduces consumption and investment

5) Failure to resolve banking system causes the commercial real estate market to stay frozen

Solution:

1) The public sector needs to right size their budgets—public employees are part of the solution for cost cutting measures

2) Small businesses and investors need to get the “go signal” from Congress to grow jobs

3) The banking industry has to recognize the bad loans on their books

4) Diminish uncertainty

5) More investment in stocks

If banks won’t lend, the government will lend indirectly. Deflation is the serious concern. The amount of stimulus needed to get the economy out of depression is massive. Movements towards austerity led almost immediately back into recession.

We are all awaiting the results from the election November 2nd. Your vote matters so be sure to take the time to either absentee vote at your city hall or make it to the polls Tuesday 7:00 am – 8:00 pm.

Roz Peterson rozp@cerron.com 952-469-9444