1 Rosemount State of the City address Mayor Bill Droste As prepared for delivery on March 6, 2012 This is the

e 10th time it has been my honor to deliver the State of the City address for Rosemount. And there have been some common themes through most of those years. One is that the state of Rosemount is strong. And Im proud to say that is the case this year. Another is that my City Council colleagues and I work toward goals of managing growth and moderating the cost of government. Unfortunately, one theme of the last few years has been that we in City government and in the rest of the community have had to struggle against the effects of a troubled economy. We still face so many challenges to make sure our families, businesses, and other institutions are on a strong footing. But today I would like to show you some signs of improvement, and how we hope to capitalize on those conditions. We have businesses that are opening facilities in Rosemount. We have businesses that continue to operate at a high level, providing jobs for hundreds of people. We have employers who have chosen to relocate or consolidate here. We have businesses that are expanding, rebranding, and demonstrating their commitment to the community. We have new subdivisions growing to bring more households to our community, even in a housing market that remains difficult. We are progressing to provide additional housing options for all members of the community, including the growing cohort of senior citizens. We have had a series of ribbon cuttings and welcome events for businesses that want to be part of Rosemounts existing market and its potential. And most encouraging, we have signs I dont mean signs figuratively, I mean literally of new jobs available in our community. None of this means the challenges to our economy are solved. We remain vulnerable to shocks from the national economy, and even the global economy. Our state and federal governments have a long road ahead to reach solutions to their budget problems. But our economic conditions are improving from where they were three years ago. And I would like to share with you details about how we see Rosemount taking advantage of this situation. First, for jobs and the economy: the Port Authority, which is the economic development arm of City government, spent much of the past year working on a plan for growing jobs and our economic base. Many of you heard details of it at our business luncheon last fall. In brief, we will work to increase our engagement with existing businesses. We will try to increase commercial amenities of the kind that are currently underserved in Rosemount. We will focus many of our efforts on Downtown and the Business Park. And we will devote energy toward the long-term goal of a world-class development at UMore Park.

2 Almost all of these involve public-private partnerships. In some cases, were recruiting the partners. As an example, the City commissioned a study of whether theres a need for a hotel in Rosemount. The answer was that yes, there is a demand here. By making an investment in the study, we hope to attract private developers for such a project. Weve also benefited from an analysis of the market by experts at the Urban Land Institute. It showed by one measure of the retail market stores within a five-mile radius Rosemount residents have lots of choices. We are not under-retailed, as the industry puts it. But we know our residents want close, convenient shopping. So we will continue working on niche markets to better serve our residents. We also follow closely whats happening in the housing industry. Housing is so important to local communities, especially ones like Rosemount that are growing and trying to provide opportunities for a population with changing demographics. I work in the industry, and I can point to dozens of ways that the slowdown has had a dramatic effect on new and existing housing supplies. Distressed housing continues to affect the entire market. The lowering of values is painful for homeowners and is also felt in every local government because we all depend on property taxes for most of our resources. Some of those trends are moderating. And some are likely to remain for the next few years. But in Rosemount, the year 2011 brought some encouraging news. DR Horton has begun work on 29 lots along Akron Avenue north of County Road 42. Nearby, Lennar will build 27 homes. And Ryland plans 24 homes. Those are just first-phase numbers. The total could come to 245 homes when those subdivisions are fully built-out. Theres always a certain amount of speculation in building homes before the buyers are lined up, and depending on the market for the customers to fill them. But these established firms have decided thats a good bet in Rosemount. And again, sometimes we in City government can provide help to meet the need. The City has identified a private developer to bring a crucial ingredient to the housing mix in Rosemount. The plan would bring 68 units of senior housing to the site of the old St. Joes School, just north of the Steeple Center. Demand to serve this segment of the population will grow in the next several years. We can meet part of the need with this development and not just as a home for some, but as a gathering place at an attached center, dedicated to the needs of our seniors but not walling them off instead, tying into the rest of the community through our Downtown. I have mentioned the financial challenges to City operations. Weve met them while still moderating the tax burden on our residents. 2012 marks the fourth year of reduced property taxes charged by the City, as measured on the median-value home in Rosemount. Weve held that line actually, weve moved that line down while still funding a prudent list of added items. Our Fire Department put a half-million dollar fire truck into service late in the year. We are developing baseball fields on property deeded by UMore. We have received a grant that will allow us to extend a trail along Highway 3 to Connemara. We continue to protect the Citys investment in infrastructure like the street network with a thorough maintenance plan. Weve looked for help where we can, and weve succeeded by winning grants from the Met Councils Livable Communities program for $440,000 for amenities like a public plaza and streetlights at the senior development.

3 And we are working with the MVTA to get a jump start on funding for a Park and Ride just south of City Hall. In my role as Vice Chair of the Authority, I review ridership figures. For the system as a whole, rides were up 6.2 percent last year. The express routes from Rosemount to Minneapolis were among those showing healthy growth. With a return to higher gasoline prices and the introduction of bus rapid transit service on Cedar Avenue, the demand for those services is certain to grow. A Park and Ride in Downtown Rosemount will meet the need. Its fun to talk about the new stuff. But we have to keep our eye on the basic functions of City government. We have an accomplished staff of employees and people who volunteer for part-time work to maintain Rosemounts public safety. This weekend the American Legion will honor one from Police and one from Fire for the annual Public Safety Employees of the Year recognition. And its always a hard choice to make the picks from many nominees. Reported crime was essentially the same in Rosemount last year as the year before. There were increases in reports of theft, vandalism, and misdemeanor assault. But even so, those categories are below the averages for the last five and ten years. The decline is fortunately steeper for serious crimes. Fire Department calls rose last year but not because of fires. Those calls were down. But there was a big increase in the need for medical help. Other City workers stayed busy, too. This winter hasnt required as much snowplowing as the one before. But weve kept Public Works crews busy with other maintenance. Our parks continue to be a popular meeting place for neighbors, and our staff maintains a quality program of recreational activities. Parks-and-Rec and Public Works are also busy with the creation of ball fields at UMore, and improvements to Rosemounts trail system. And our staff provides support services with members of the community willing to volunteer for one project or considering the dedication of some of our citizens, to volunteer for several. The Beyond the Yellow Ribbon group leads our communitys support of military members and their families. The Arts Council had a successful year, generating not just cultural opportunities but also economic activity. Now one of our high school teachers has organized a community band. And we had another successful year for Leprechaun Days and the Haunted Woods Trail. The way Rosemount comes together to celebrate holidays, or success or to provide support for individuals and groups that need assistance is a significant part of who we are as a community. But who we will be as a community depends on our young people. And their success depends on their education. We on the City Council are advised by the Youth Commission. We honor students who go above and beyond to excel in scouting and 4-H. And we get to greet the Irish Marching Band: number one in Minnesota for the sixth year in a row. Our public schools have many accomplishments. Our high school even had a student, Scott Miller, who got a perfect score on the ACT college admissions test last spring. That puts him at the 99.95 percentile nationally. These are signs of the tremendous success of our schools, public and private. Their dedicated staffs strive to make Rosemount a desired place for families.

4 Were also home to the intermediate school district, 917, and to Dakota County Technical College. DCTC offers unique studies in areas like nanotechnology. But it also strengthens our community with offerings for workforce training. Two-year schools like DCTC are critical to providing skilled workers as the national economy ramps up. All of our educational institutions are continually changing because their student bodies are changing. Rosemount remains a growing community with about 7,000 children age 17 and younger. Our Citys population is increasingly diverse: 13 percent people of color in the 2010 census. And thats especially true of the young. Last school year, in the District 196 schools that draw mostly from Rosemount, 19 percent were nonHispanic, non-white. The state keeps track of how many languages are spoken at home. For 196s students, there are 84 different languages and dialects everything from Spanish and Somali to Grebo and Waray. We know weve changed substantially in the last ten years: in the nation, state, metro, and county. We expect the change to accelerate. Thats one of the many ways Rosemount will look different in the future. Development patterns will change, too. You can see a 400-foot tall example of that on the horizon. The wind turbine at UMore Park was dedicated last year, to provide cutting-edge research on clean energy. Its just a prototype, and it may be gone by the time the big changes take place at UMore. The University of Minnesota plans a futuristic community of 20-to-30,000. To pay for it, the U hopes to begin gravel mining on part of its property. The City has just begun its review of the new ordinance to cover the mining. The Planning Commission and the Council will be holding public hearings at every step of the process. Were already heard from some residents that the newest concepts appear much less intrusive than the original. And we hope for continued improvement. In his state of the university address last week, President Eric Kaler talked about the vision for UMore. To quote: Excellence also means aligning our strategies with economic realities. That is another component of balancing change. For example, given the uncertain economic environment for residential development, the UMore Park LLC board decided that we are going to focus in the near term on economic development activities that will add value to the property. President Kaler concludes: While we remain committed to the long-term goals, we will use this time to further develop a plan to mitigate the impacts of gravel mining and other development activities on faculty who use UMore space for their research. In the near term, the University has agreed with the City to resume work on a review of any environmental issues that need to be addressed before development moves forward.

5 As always, we have a lot on our plate. To guide the Citys staff as they carry out their work, especially as they prepare budget proposals for the following year, the Rosemount City Council sets annual goals. We approved the latest version last month. There are four categories covering much of what weve discussed here: Structural Finances and Efficiency, Infrastructure and Sustainability, Parks and Recreation Facilities, and Economic Development. We list several specific projects and initiatives things such as pursuing a partnership for indoor recreational amenities with DCTC and the YMCA; continuing our progress on communications with the public; increasing the use of parks facilities with the addition of features and encouragement of special events. And we intend to develop a comprehensive strategy to enhance Downtown Rosemount, for the people who live and work there and for the rest of the community. Some of the possibilities are building a splash pad for children to play in water; improving the Erickson Park shelter and parking lot; paving Brazil Avenue; building an underpass for pedestrians under Highway 3 near the Community Center; and adding lighted tennis courts and exercise stations for seniors. Some of that may take a few years, but the work begins now. We also hope that our citizens will adopt a goal of their own: to shop whenever possible at our hometown businesses. Giving those businesses our support will ensure that they are present and able to support our community. To review, what will you see in Rosemount in 2012? Those new subdivisions we talked about earlier. The Mississippi River Trail, a bikeway that eventually will run from Rosemount to Lake Itasca and the Gulf of Mexico. We hope to see a start on the senior housing project and improvements at the Community Center. And we especially hope for more companies to follow in the footsteps of Hawkins and Proto Labs, bringing new job opportunities to the City. We invite them all to join those of us who make Rosemount our home, and our success story.