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HomeMy WebLinkAbout05.23.11 EDA Packet AGENDA ECONOMIC DEVELOPMENT AUTHORITY May 23, 2011- 6:00pm City Council Chambers, City Hall AuthoritY Members Chair, Jason Bartholomay 1. Call Meeting to Order Vice-Chair, Christy Jo Fogarty 2. Pledge of Allegiance Terry Donnelly 3. Approve Agenda Mayor Todd Larson 4. Citizens Comments/Presentations Julie May Executive Director, Peter Herlofsky, Jr. City Administrator 5. Consent Agenda a. Meeting Minutes i. April 25, 2011 b. Bills: 4/25/11- 5/22/11 CitY Staff Representatives 6. Public Hearings Tina Hansmeier Economic Development Specialist 7. Continued Business a. Amendment to Contract for Private Development (McVicker) b. Economic Development Strategic Plan Priorities - Lee Smick Lee Smick City Planner 8. New Business a. Minnesota Targeted Brownfield Assessment Program (MNTBAP) Cindy Muller Executive Assistant 430 3rd Street Farmington, MN 55024 9. City Staff Reports/Open Forum/Discussion a. Major Economic Development Activities - May b. 431 3rd Street (former Senior Center) - (verbal) c. Farmers' Market Update (verbal, Cindy Muller) d. Roundtable Phone: 651.280.6800 htto:/ /www.ciJarmimrton.mn.us 10. Adjourn The Farmington EDA 's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. J:\HRr\-EDA\BOARD /\.GENDAS\20 1 [ Board Agendas\052311 \052311 Agenda.doc TEH 5CL MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting April 25, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:00 p.m. Members Present: Bartholomay, Fogarty, Larson, May, Donnelly (arrived 6:41 p.m.) Members Absent: None Also Present: Andrea Poehler, City Attorney; Tina Hansmeier, Economic Development Specialist; Lee Smick, City Planner; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROVE AGENDA MOTION by Larson, second by May to approve the Agenda. APIF, MOTION CARRIED. EDA members took a walking tour of the downtown area. Staff explained the remodeling planned for Pizza Man, members viewed the new Vintage Marketplace, and discussed the plans for the McVicker lot. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA MOTION by Larson, second by May to approve the Consent Agenda as follows: a) Approved Minutes March 28,2011 b) Approved March Budget Details c) Approved Bills 3/28/11 - 4/24/11 APIF, MOTION CARRIED. 6. PUBLIC HEARINGS a) Consider Sale of Property, 323 3rd Street Economic Development Specialist Hansmeier presented the Contract for Private Development which outlines the terms of the sale of the McVicker lot to Dr. Linden Dungy for a dental office. The purchase price is $38,500. He will increase his dental office from three chairs to six chairs. Dr. Dungy agreed to execute an easement in favor of the property on the north side allowing for the stairway access and utilities and also a 14.65 ft. easement on the south side for a walkway. The EDA is responsible for: - Paying for the outstanding assessment on the lot. - Preparing the legal and easement descriptions. EDA Minutes (Regular) April 25, 2011 Page 2 - Construct and pay for the walkway from Third Street to the municipal parking lot. - The Council authorized providing the available tax increment funds to Dr. Dungy to assist him with this project. The assistance will be provided in three equal installments. (EDA member Donnelly arrived 6:41 p.m.) By approving the sale, the EDA is also approving the construction and cost of the walkway. Staff provided three design options at the last meeting and the EDA approved option 1, which matches the current streetscape. The cost of the walkway is $12,343. Regarding the assessments, in previous years, staff had been directed to absorb the assessment costs in order to make the sale price of the lot attractive. The cost of the walkway, assessments, and broker fees, will be covered by the proceeds from the sale. Dr. Dungy has submitted plans by the required deadline and they are being reviewed. MOTION by Fogarty, second by Larson to close the public hearing. APIF, MOTION CARRIED. Member Fogarty asked about the north side easement which is approximately 5.5 ft. which is to allow for the stairway for the building next door. Her concern is that the City will not own it because it is an easement, but she also does not want the City to have responsibility for it. She would rather give the area to the property owner or sell it to them. City Attorney Poehler stated conveying that piece of property is not a good option. The City could talk to the abutting property owner and grant an easement to them so they are responsible for it. Member Fogarty would prefer to proceed with that. City Attorney Poehler stated the only problem could be that they already have an easement through their long- term ownership. If it was established for 15 years prior to the City taking ownership, they could claim adverse possession of the easement. Staff will talk with the neighboring property owner, Mr. Ken LaBeau. City Attorney Poehler stated Dr. Dungy could grant the easement to the abutting property owner since the City no longer owns it, or prior to closing the City could grant the easement and then Dr. Dungy would take it subject to the easement of the abutting property owner. By having the easement granted to the abutting property owner, it would not forego the opportunity between the abutting property owner and Dr. Dungy to work out something in the future if it is determined the stairway is not needed. Member May asked about the origin of the assessment. Economic Development Special Hansmeier explained it was for the streets cape project done in 2000 which is now the road and bridge fund. Member May clarified that the EDA has to put money into the road and bridge fund for that lot's portion of the streetscape EDA Minutes (Regular) April 25, 2011 Page 3 project. Staff explained we have to pay the assessment. At the time it was done, it was a separate assessment project. Now it is part of the road and bridge fund. Member Donnelly asked why there is an easement rather than granting ownership. City Attorney Poehler explained if the easement is not needed in the future, then you are not carving out a piece for this property. Dr. Dungy would be the underlying property owner and the easement owner would be the abutting property owner. Right now in the agreement, the EDA is the easement owner. Staffwill talk with Mr. LaBeau to see if the EDA can grant them the easement in advance of the closing and the sale would be subject to the easement transaction. Then the EDA would have no interest in the easement following the closing. Dr. Dungy asked if the easement portion can just go to Mr. LaBeau. City Attorney Poehler agreed the EDA can deed it over to Mr. LaBeau. It is approximately 500 sq. ft. City Attorney Poehler stated Mr. LaBeau would have to agree to receiving the property and there is also a cost for the lot split and a lot combination and changing the legal description. The better option is to do the easement, close on the property, and the two property owners could go through that process after the fact. MOTION by Fogarty, second by Larson to approve the Contract for Private Development authorizing the sale of the property to Linden K. Dungy. APIF, MOTION CARRIED. b) Consider Sale of Property, 305 3rd Street MOTION by Larson, second by Fogarty to close the public hearing. APIF, MOTION CARRIED. Staff presented a proposal to purchase the old liquor store building at 305 3rd Street. Mr. Bing Threet, owner of Structural Restoration, will be using the building for office space. The purchase price is $120,000 which is the appraised value. The closing will occur by May 31, 2011, and no later than October 31, 2011. Member May asked for a net sheet and an idea ofthe amount for half the closing fees. The closing fees would be a maximum of $500, or $250 for half. Repair of the roof, environmental studies and surveys are already done. The sale of this property would go to the EDA to lower the deficit. MOTION by Fogarty, second by May to approve the Purchase Agreement authorizing the sale of the property and building located at 305 3rd Street to Threet Properties, LLC. APIF, MOTION CARRIED. 7. CONTINUED BUSINESS a) Economic Development Strategic Plan City Planner Smick asked that the remaining EDA members select their top three priorities. Staff will then start preparing the strategic plan. EDA Minutes (Regular) April 25, 2011 Page 4 b) Grow Farmington Update City Planner Smick prepared a matrix showing the progress of the Grow Farmington project. She gave an update on the status of the various projects along with staff time and the responsible party. Member May asked if a specific type of cigarette butt container can be required so flower pots are not used. Staffwill research this. Mr. Clyde Rath has received 44 sponsors of the required 48 for flower baskets or pots. A sign will be prepared for basket sponsors. Jon Einess is also interested in flower pots at the north end. This would tie the north and south together. Baskets and pots will be planted and set out on May 14. The Farmington Business Association will also be looking at new banners for the poles on Elm Street. The Councilmembers will personally sponsor a pot. Member May will check with the Rotary. Unite Farmington will be discussed at the next Grow Farmington meeting. Member Fogarty asked about a schedule for business visits for the Council. City Planner Smick is working on that and needs the priorities from EDA members. Member May suggested getting through the weekly budget meetings first. 8. NEW BUSINESS a) EDA Composition The EDA has discussed changing the composition of the EDA from 5 Councilmembers to either 2 Councilmembers and 5 residents or 5 Councilmembers and 2 residents. In previous years, the EDA was comprised of 2 Councilmembers and 5 residents. In 2008, the Council changed the composition to 5 Councilmembers. Member Larson felt the Councilmembers needed to be up here, but would not mind adding two non-voting members. Member Bartholomay agreed. Member Fogarty liked the composition of 5 residents and 2 Councilmembers, but agreed with anything that would allow for more resident input. Members agreed with solving the deficit problem first. Member May felt by adding two advisory members, it is a beginning to the transition. Member Donnelly agreed with adding two residents. Because the two resident seats will be ex-officio, the length of terms is up to the EDA. Members wanted the terms to start as soon as possible. The terms would end after 2013 and 2015. The EDA asked that the stipend be the same as the Planning Commission. The ex-officio seats will not have any voting power, only provide input. The EDA recommended this be brought to the May 2, Council meeting instructing staff to prepare a resolution and ordinance and hold a public hearing at the May 16, Council meeting. Then an ad will be placed for 30 days. EDA Minutes (Regular) April 25, 2011 Page 5 9. CITY STAFF REPORTS a) Major Economic Development Activities - April Staff reviewed updates for April. b) 4313rd Street (former Senior Center) Staff reviewed quotes obtained on mold removal. There is no requirement to do air samples. Staff would need to obtain quotes for painting and removal of walls. Members suggested ripping out the carpeting and then decide on removal of walls. Chair Bartholomay asked if there was a liability with having staff remove the carpeting. City Attorney Poehler replied no, not if they're qualified. Staff stated you do not have to be certified to remove moldy carpet. Member May realized staff is busy, but perhaps they could remove the carpeting in between projects. This should be considered as remediation. As this is a City-owned building, staff should bring this to the May 2, Council meeting. c) Farmers' Market Update Currently there are 13 confirmed vendors, and staffis expecting six more. Four of the vendors are new. Events have been planned for six nights. d) Next Meeting Date The next EDA meeting is May 23,2011. e) Roundtable Member Fogarty noted the Farmington Royalty will be at the opening day for the Farmers' Market. She would like the Royalty to have more community outreach and asked that the Business Association have them attend events. Member Donnelly was pleased to see the McVicker lot and the old liquor store building sold. Member May thanked staff for their hard work in getting these properties sold. Member Larson agreed it is good have the buildings sold. Chair Bartholomay stated the next Grow Farmington meeting will be Thursday at 5:30 p.m. 10. ADJOURN MOTION by Fogarty, second by Larson to adjourn at 8:02 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~~e/~ Cynthia Muller Executive Assistant ~ r': o 0; ... ... o ~ it; z o l- t!) z I II. o ~ (.,) , III Cl CIl 0. t=- ., E E :J en ~ c3 'i3 C 5 (.,) i1 "C 'IS Cl C '6 C !!l g '" oS III :J "C ]I oS ~ i3 1il -8 ., 1) III ~ '0 C >. ~ ~ ~ C 8 j ...I ... () ~ ! en (.,) ~ ~ ... ~ ... ~ ~ 51 !I 81 <'> <'> o 0 8 8 N N o 0 I- I- Z Z LU LU :iE :iE 0. 0. g g LU LU ~ ~ Cl Cl (.,) (.,) :E :E o 0 z z o 0 (.,) (.,) LU LU .~ ~ ::c ::c C o "" 0.. 'C 81 Cl :J CD c o := 0.. '5 ~ Cl ~ j ~[ ]l .c :J en en en LU LU (.,) (.,) ~ ~ LU LU en en ...I ...I ~ ~ o 0 Cii Cii en en LU LU II. II. o 0 0:: 0:: 0. 0. ~I g[ 1il1 ... o 0 ~ ~ o 0 ~ ~ ~l ~I ~[ '" '" r-- r-- <'> <'> r-- r-- co co ... ... :6 :6 :8 :8 '" '" B ~ ~ ~ ~g !:i !:i ~ ~ (.,) (.,) (; (; :iE :iE ~~ en en II. II. 0:: 0:: 0. 0. co co ~ ~ :z :z ~ ~ .... 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I i .... .... <'> o <'> o o 8 N o I- Z LU :iE 0. g ~ Cl () :E o Z o () LU ~ ::c ~ I- Z LU :iE 0. g ~ Cl () :E o Z o () LU ~ ::c LU ...I CD ~ ~ ~ ~ 0. LU Cl () ~ LU ...I LU :g N N ~ ~ o 8 '" o o o '" ~ J; 8 ~ ;0 ~ '" '" Z t!) ~ Cii ~ ~ ~ :3 ~ LU W c5 ~ ~ LU r-- i ~ ~ (;) 8 8 d d o 0 0.. 0.. ~ ~ (I') M N '" .... .... o s:! co ii II) .... II) C> .... .... o N 5b ~ N ~ c<) .!Il ~ l- t: Ii III 0:: 7a~ City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Amendment to Contract for Private Development - 323 3rd Street (McVicker Lot) DATE: May 23, 2011 INTRODUCTION/DISCUSSION Attached is a First Amendment to the Contract for Private Development between the EDA and Philippians 4:19, LLC. Linden K. Dungy entered into a contract with the EDA on April 25, 2011 to purchase the property located at 323 3rd Street (McVicker lot). Mr. Dungy has since created a limited liability company and assigned his interested in the Contract to Philippians 4:19, LLC. The amendment extends the closing date to June 23, 2011. This extension is necessary to address certain title issues. ACTION REQUESTED Approve the First Amendment to Contract for Private Development. RespectfuHy submitted, -- Tina Hansmeier Economic Development Specialist cc: Bruce Rydeen, Cerron Commercial Properties KW Commercial - Becky Leebens and Janie Tutewohl File FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT FARMINGTON, MINNESOTA TillS AMENDMENT, made on or as of the day of ,2011, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws of the State of Minnesota (the "EDA") and PHILIPPIANS 4:19, LLC, a Minnesota limited liability company, (the "Developer"). WHEREAS, the EDA and Linden K. Dungy ("Dungy") entered into a Contract for Private Development dated April 25, 2011, (hereinafter "Contract"), related to the conveyance and development of the Property legally described in Exhibit "A." WHEREAS, Dungy has assigned his interest in the Contract to Philippians 4:19, LLC, the Developer, and the EDA approves the assignment; WHEREAS, the parties desire to extend the date for closing to address certain title issues. NOW, THEREFORE, in consideration of the Contract and the premises and mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. follows: AMENDMENTS. The definition of "Developer" in Article I is amended to read as 157698v2 "Developer" means Philippians 4:19, LLC, or any assigns that have received prior written approval from the EDA. 2. AMENDMENTS. Section 3.4(a) of the Contract is amended to read as follows: (a) Within ten (10) days after the satisfaction and/or waiver of all of the conditions contained in Section 3.2 of this Agreement, and in any event no later than June 23,2011 ("Closing Date") provided all conditions precedent for the EDA and Developer to close have either been met or waived, and the Developer pays the EDA the Purchase Price, the EDA shall convey the Property to the Developer through the execution and delivery of the Deed and all other documents reasonably required by Developer and the Title Company. This closing shall be at a location mutually agreed upon by the parties. 3. EFFECT. The Contract shall remain in full force and effect except as specifically amended by this First Amendment to Contract for Private Development; IN WITNESS WHEREOF, this First Amendment to Contract for Private Development was executed by the parties the day and year first above written. Economic Development Authority in and for the City of Farmington By: Jason Bartholomay Its Chair By: Peter Herlofsky Its Executive Director Philippians 4:19, LLC By: . President 157698v2 STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2011, by Jason Bartholomay and Peter Herlofsky, the Chair and Executive Director, respectively, of the Economic Development Authority in and for the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2011, by , the President of Philippians 4:19, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public DRAFTED BY: CAMPBELL KNUTSON, P.A. 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP 157698v2 EXlDBIT "A" LEGAL DESCRIPTION OF THE PROPERTY That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota distant 20 feet North of the Southwest corner of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet; thence North 30 feet to the point of beginning. AND All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at the Northwest corner of said Lot 7; thence South, along the West line of said Lot 7, 30 feet; thence East 110 feet; thence North 30 feet; thence West 110 feet to the point of beginning; together with that part of the vacated alley adjacent thereto described as follows: Beginning at the Northwest corner of said Lot 7; thence East 110 feet; thence North 10 feet; thence West 110 feet; thence South 10 feet to the point of beginning. PIN # 14-77000-088-23 157698v2 /1 /b City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Lee Smick, City Planner AICP, CNU SUBJECT: Economic Development Strategic Plan Policies DATE: May 23, 2011 INTRODUCTIONIDISCUSSION On March 14, 2011 the policies and strategies for the Economic Development Strategic Plan were discussed at the EDA Workshop. At that workshop, staff requested that the EDA determine which priorities would rank 1 st, 2nd, and 3rd in order to determine the tasks for staff in the next 6 to 12 months. After the rankings were tallied, it was determined that the top ranking for the priorities was Business Recruitment/Expansion and Retention programs followed by the creation of a marketing plan and the need for resources for Economic Development. The next step is to hold a strategic planning facilitation session at the EDA meeting on June 27, 2011 concerning the above-mentioned items. This facilitation session will provide the following benefits: o Determine the specific plans - strategies, solutions, action plans o Provide greater commitment and ability to implement decisions and strategies o Provide more innovation to form the solutions o Provide a common framework for decision making, communication, planning, and problem solving o Encourage initiatives The facilitation session will also include a matrix that names the action step, the responsible party to achieve the step, the progress on completing the step, and the deadline. Staff will also prepare a calendar for business visits by the Council. Attached (Ex. A) are proposed strategies to complete these tasks. ACTION REQUIRED Review the prioritized areas of opportunity and make comments. Exhibit A Areas of Opportunities: Red Text - Working on/Completed items Blue Text - Proposals to work on Policy-I, 2,3,... Strategy - A., B., C.,... Action step - i., ii., iii.,... 1. Business Development A. Business retention/expansion program 1. Business Outreach Program 11. Continuous Communication with Existing Business Owners 111. Focus on Retention and Expansion of Existing Businesses a. Business visit and interview b. Tracking of "red flags" from businesses: how should requests be handled, who responds, when follow-up occurs, outcome of follow-up visit c. Measure success of BRE Program IV. Small Business Mentoring Program v. Shop Local Program - 3/50 Project vi. Community Council- GROW Farmington vii. Grow Minnesota Visits B. Business recruitment 1. Downtown Development a. Delineation of downtown commercial district b. Downtown commercial overlay district created c. Downtown design standards d. Master plan for Rambling River Park e. Farmer's Market f. Incubator Spaces - 305 3rd St g. Marketing buildings for sale h. Buxton Leakage Study 11. Industrial Development a. Industrial Park (West side ofPKR) has been comp planned and zoned for industrial uses. A preliminary concept plan has been prepared. b. Install infrastructure on Fairgreen Avenue to attract industry. c. Industrial Recruitment Strategy iii. Commercial Development a. Business Recruitment Strategy What types of businesses do you want to attract? What specific businesses will be recruited? How will the initial contact be made? Where should the initial contact occur? Who should make initial contact? What materials should be included in marketing package? When and how should follow-up occur after the initial contact? Market position statement - types of businesses to attract Identify business wish list - targeted markets Comparability study Assemble recruitment and marketing materials Generate leads Court prospects b. Components in Place at time of Recruitment Identification of the optimal tenant mix Inventory of available building space or developable sites Business recruitment strategy Marketing package promoting the advantages of the community c. Promote Tenant Mixture Browsing d. Provide incentives to locally Owned Business - Funding? e. Attract nationally known businesses (Starbucks, Walgreen, CVS) f. Business Owner's Forum g. Realtor Day h. Broker Tour 1. EDA Tour 2. Create Marketing program A. Marketing folder/Business outreach program brochure Marketing package inserts a. Map of retail site and trade area/Sell Sheets b. Map of retailer's potential customers c. Retailer match report that compares the site's trade area characteristics with the retailer's locations in similar trade areas - Metro MSP d. Demographic and psychographic profiles of the households in the trade area e. Contact information for the person at the retailer who has location decision responsibilities f. Trade area geographic definition, demographic data, and economic data g. Vehicle and pedestrian traffic volume h. Mix of existing retail, services, housing, etc. 11. Define Brand - GROW Farmington a. Determine if brand is citywide or for commercial areas only. b. Create a "brand" or new image for Farmington that revolves around one central theme. c. Define key positioning messages and images. d. Align consistent messaging about Farmington with other marketing partners such as newspapers, calendar, Dakota County Fair, Dakota Regional Chamber, etc.. 3. Resources available to support Economic Development a. Work with EGC, FBA, School District, Rotary, etc. b. CDBG Business Reinvestment loan/grant program c. CDA Redevelopment Incentive Grant (Riste building) d. CDBG Program e. Staff f. Business Improvement District tax g. Small Business Development Loan Program (DEED - Industry) h. DEED Redevelopment Grant Program 1. Metropolitan Council's Livable Communities Demonstration Account J. Levy k. Potential new staff 1. Transition to EDA 7-member group ifGL City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Minnesota Targeted Brownfield Assessment Program (MNTBAP) DATE: May 23, 2011 INTRODUCTION The Minnesota Pollution Control Agency [MPCA] Voluntary Investigation and Cleanup [VIe] Targeted Brownfield Assistance Program [TBAP] provides technical consulting services for historical investigations (Phase I), environmental sampling (Phase II), and evaluation and development of cleanup options (Response Action Plans [RAP]) for Brownfield sites within Minnesota at no cost to the applicant. MNTBAP is not available to private individuals however; Municipalities and general purpose units of local governments (among others) are eligible to apply on behalf of a private individual seeking to return environmentally impacted property to beneficial public use. Applications for assistance are accepted throughout the year. The following items are provided below to draw attention to the major components of this grant program: . Grant funds are available to assist with performing Phase I, Phase II and RAP. Under this program the MPCA provides this service to help assess sites and to encourage Brownfield redevelopment. They coordinate the work, cut contracts, and pay the consultants. There is no out of pocket cost to the applicant, property owner, or interested buyer for the abovementioned services. . EDA/City must pass a resolution of support and serves as the applicant on behalf of property owner and interested buyer. . Benefit: tool to assist with redevelopment of developed and potentially contaminated property. . There must be a commitment from the current owner and interested buyer that they are serious about moving forward. . Costs associated with recommended cleanup options would NOT be the responsibility of the EDA/City. TEH Staff recommends the EDA participate in this program if and when all necessary components are in place. This program could serve as a tool to assist with business attraction, retention and expansion and will help encourage the redevelopment of existing Brownfield's. More information about the MPCA' Brownfield Cleanup Assistance is attached. DISCUSSION This item is for informational purposes only; no action is requested at this time. Tina Hansmeier, Economic Development Specialist Minnesota Pollution Control Agency Brownfield Cleanup Assistance Minnesota Pollution Control Agency What brownfield is According to the U.S. Environmental Protection Agency (EP A), a ... 'brownfield site' means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant." You may have noticed brownfield sites in your community. They can be fenced-in, empty lots or vacant buildings in industrial areas that remain idle for long periods of time. Potential buyers or investors may suspect that previous occupants of the property may have left contamination behind. Examples of businesses that use chemicals or generate wastes that could potentially be released to the environment include: . auto salvage yards . wood-treating yards . drycleaners . metal plating shops . printing shops . motor vehicle repair shops o chemical manufacturers and storage facilities . others Since 1992, when Minnesota's Land Recycling Act was passed, many brownfield properties have been cleaned up and redeveloped. However, many properties remain in our communities where there is a reasonable potential that contaminants were released in the past. CleanuplBrownfields #1.02 . August 2010 Why we are involved with brownfields When brownfield sites with contamination posing an environmental or health risk are investigated and cleaned up, communities can reuse previously developed land, generate jobs, increase the community's tax base, or add other amenities such as parks or community centers. The economic benefit of redeveloping brownfield sites is well documented and government agencies at all levels have set up grant programs and other financial incentives to encourage developers and other parties to consider reusing brownfields. Grants that help cover the cost of brownfield investigation and cleanup make brownfield redevelopment economically feasible. Businesses willing to undertake the additional steps involved in brownfield redevelopment can benefit from the prime locations of many brownfield sites near central transportation corridors and population centers. Meanwhile, communities find that brownfield redevelopment eases development pressure at the urban fringe and reduces the demand for costly new infrastructure. Many other benefits come from the reuse of previously developed property. They include the stimulation of property values, increased appeal of nearby residential areas, and reduced commuting times for residents who have new employment opportunities in their communities. c-brwnfId1-02 Minnesota Pollution Control Agency. 520 Lafayette Rd.. N., St. Paul, MN 55155-4194 . www.pca.state.mn.us 651-296-6300 . 800-657-3864 . TTY 651-282-5332 or 800-657-3864 . Available in alternative formats How the MPCA assists with brownfield cleanup The Minnesota Pollution Control Agency (MPCA) provides two key forms of assistance: First, and most importantly, the MPCA operates two environmental programs that have the primary goal of assisting parties who wish to purchase, investigate and if needed, cleanup a property for redevelopment. The second type of assistance allows communities engaged in brownfield redevelopment to receive technical assistance from the MPCA for site investigation and cleanup planning. MPCA technical assistance The MPCA's Voluntary Investigation and Cleanup (VIC) Program and Petroleum Brownsfields (PB) Program were created to address the technical and liability issues associated with buying, selling, or developing property with known or suspected contamination. The key difference between the two programs is that VIC was designed for sites contaminated by hazardous substances, while the PB Program was set up for sites contaminated by petroleum. The VIC and PB Programs provide technical review and approval of site investigations and cleanup plans so that landowners, lenders, and developers can be assured that the extent of environmental problems at a site are reasonably well known and the costs of site cleanup may be calculated. In addition, parties cooperating with the MPCA and conducting site investigations and cleanup may be able to obtain liability assurance letters for contamination identified at their sites. For VIC Program information you can contact the MPCA at 651-296-6300 or 1-800-657-3864 or visit the MPCA Web Brownfields page. For information about the PB Program you can contact the MPCA at 651-296-6300 or 1-800-657-3864 or visit the MPCA Web Brownfields page. The MPCA conducts site investigations at brownfield properties through its Targeted Brownfield Assessment (TBA) Program. The MPCA's TBA Program, the MNTBAP, is funded with a grant from the EP A, and provides the MPCA with funding to hire consultants to perform Phase I and Phase II environmental site assessments and Response Action Plans (RAPs) at suitable brownfield sites. The grant also pays for MPCA staff time. There are no fees to communities associated with this service. For information about the MNTBAP you can contact the MPCA at 651-296-6300 or 1-800-657-3864. A fact sheet providing additional information and application instructions and materials for the MNTBAP is available on the MPCA's Web Brownfields page. For more Information The MPCA's Web site contains additional fact sheets and news items concerning brownfields, as well as links to other useful sources of information on brownfields. In addition a link to the 2010 Brownfield Resource Guide, a compilation of technical assistance and financial resources in Minnesota, is available on the MPCA Web site on the Brownfields page. Brownfield Cleanup Assistance' c-brwnfld1-02 . August 2010 Page 2 MI"l"leota P01lutfon CcmtfoI.Agenq Major Economic Development Activities May 2011 Prepared By: Tina Hansmeier 2011 Active Commercial Projects AK Performance Graphics (build out) CDA Senior Housing (new construction) Immanuel Dental (new construction) Farmington High School Minute Clinic (build out) Pizza Man Bar & Grill (addition) Savers Choice Market (Econo) (interior remodel) 2011 Commercial Certificate of Occupancy's Issued Anytime Fitness (build out/addition) NAPA Auto Parts (build out) RP Holdings - office space 400 Oak Street (build out) Schmitz-Maki Arena (ice system replacement) Smiles for Life Dentistry (build out) Commercial / Industrial Inquiries Staff received 8 inquiries from 4/26 to 5/18. Cow Interrupted... Ice Cream Store (342 3rd Street) Farmington Coffee Brew Ha Ha Janie's Home Team Realty (330 3rd Street) will host the Brew HaHa on Thursday, May 25 from 8:00am-9:00am. Former BP Gas Station (22280 Chippendale Avenue) Mr. Shawn punjwani is the owner of the property located on highway 3 that was formerly occupied by a gas station. This property is currently vacant and is for sale. There is an interested buyer and recently Mr. Punjwani's contractor removed the underground fuel storage tanks from the property. Farmington Business Association The second annual Minnesota Soybean Festival will take place this weekend. The festival offers fun for all ages, including FREE: hay rides, 12 hours of LIVE music, a parade, fair foods, historical exhibits, vendors, and children's activities. New this year - Segway Rentalsl Attached is the festival map. TEH Page 1 5/19/2011 Immanuel Dental (511 Elm Street) The Immanuel Dental site plan was reviewed and approved at the May 10 Planning Commission meeting. The address of the property where the clinic is proposed to be constructed is 323 3rd Street (McVicker Lot). Vintage Marketplace (302 Oak Street) Co-owners Nancy Cauley and Ricki Brieter and store vendors celebrated their store opening on May 1ih. Offering shabby chic, antiques, collectables, vintage jewelry and much, much more, Vintage Marketplace will serve as a new destination shopping experience and occasional-sale retail store. The store's next sale dates are .May 21st and June 9-12. TEH Page 2 5/19/2011 Page 1 of 1 ."_tIlt .'....~. . ........~,_,~,'..- 4~ .. r '-1 "",;:',i",/",.,.::1 ioliollO. ^~~:" ""!" ,*1: ,.:1 .~~~~ 2011 ~ ' .l..' r",~~,il. ltfinneaota' .~.Sb.lj"...i.'.'.,..'..-- ube..' " an.. '.n~.".':E ..........e' ..'....ti~.~Val.. 'f, .~... ." , 1t.....'J~ ,,,.. '. ~ . '" . ,',\" .. ~.t ., ,"'" .'\ ..,-.'" ~;i~s~~ay' 21 ":J~. Noon." ~lidnidftt.1 ,. '" Q .. ~~ , I,. '. .'J... '. 'l. ' ,I' ....'lI<".... "'~ ,t ... 1.'- \. - :':lIImB I ~: '~'Ol!W'" u1 ~): ~I 1 t}1: $rj ; ...-:. f1 u. f'dk _ ~: l~"~~~ gStqe --- 'ParJd 1__ j ~ ,.Beer 8epaya .VeAdon IFalr Fooda . Tea.t/Shelter nKld.a . Aria .Blffya Parade Route http://www.mnsoybeanfestival.com/F estival- Map- 20 11.jpg 5/19/2011