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HomeMy WebLinkAbout07.18.11 EDA Packet AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING July 18, 2011 6:00 P.M. CITY COUNCIL CHAMBERS Jason Bartholomay, Chair Christy Fogarty, Vice-Chair Todd Larson, Mayor, Terry Donnelly, Julie May I. Action Taken 1. Call Meeting to Order 2. Pledge of Allegiance 3. Approve Agenda 4. Citizen Comments / Presentations 5. Consent Agenda a. Meeting Minutes i. May 23 ii. June 6 iii. June 27 b. Budget Details: April and May c. Bills: 5/22/11- 7/15/11 6. Public Hearings 7. Continued Business a. Economic Development Strategic Plan Policies 8. New Business a. Amendment to Contract for Private Development - AK Performance Graphics 9. City Staff Reports/Open Forum/Discussion a. June/July Activities Report 10. Adjourn MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting May 23, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:00 p.m. Members Present: Bartholomay, Larson, May, Fogarty (arrived 6:05 p.m.) Members Absent: Donnelly Also Present: Kevin Schorzrnan, Interim City Administrator; Tina Hansmeier, Economic Development Specialist; Lee Smick, City Planner; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROVE A GENDA MOTION by Larson, second by May to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA MOTION by May, second by Larson to approve the Consent Agenda as follows: a) Approved Meeting Minutes April 25, 2011 b) Approved Bills 4/25/11 - 5/22/11 APIF, MOTION CARRIED. 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS a) Amendment to Contract for Private Development (McVicker Lot) The EDA entered into a Contract for Private Development to sell the McVicker lot to Dr. Linden Dungy on April 25, 2011. Dr. Dungy has created a limited liability company and assigned his interest to Philippians 4: 19. The amendment extends the closing date to June 23, 2011. The extension is necessary to address title issues. Staff is working on utility easements before closing can occur. (Member Fogarty arrived). Member May asked if there were any issues with the assignment as far as the granting of funds. Staff is not aware of any issues. The assignment was provided for in the original development contract. They still need to be in the ground by June 30, 2011, to obtain the grant. MOTION by May, second by Fogarty to approve the First Amendment to Contract for Private Development. APIF, MOTION CARRIED. EDA Minutes (Regular) May 23,2011 Page 2 b) Economic Development Strategic Plan Priorities The EDA has selected the following strategic plan priorities: - Business Recruitrnent/Expansion and Retention Program - Creation of a Marketing Plan - Resources for Economic Development City Planner Smick will begin writing the strategic plan. Proposed action steps will be discussed at the next meeting. 8. NEW BUSINESS a) Minnesota Targeted Brownfield Assessment Program This program provides technical services and assessments to municipalities. This program would help cover the costs for a phase I, phase II, and response action plans that are associated with Brownfield cleanups. This is not available to private individuals, but cities can apply on behalf of individuals. 9. CITY STAFF REPORTS a) Major Economic Development Activities - May Economic Development Specialist Hansmeier reviewed activities that took place in May. b) 4313rd Street (former Senior Center) A mold specialist reviewed the building and has determined it is surface mold. An option would be to clean the carpets and encapsulate to prevent further mold growth. He also recommended cleaning the vents and duct system for approximately $1,000. Staff will bring this to a future Council meeting. Councilrnember May was frustrated with the process as it was supposed to be brought to a Council meeting and it hasn't been. She asked if anything has been done in the building. Staff has turned up the air to cut down on moisture. Staff stated the company could clean or remove the carpet. Councilmember May would not want anyone to see the building in this condition. The realtor has shown the property to some interested buyers who would remodel the interior. Councilmember May felt it is taking too long to do a minor cleaning job and asked staff to keep it as a priority. Interim City Administrator Schorzrnan stated staff has had internal discussions and he has pulled this back a little because he heard staff should clean it up when they have time. He did not want to expose staff to a potential risk when it is something we do not do. He asked the EDA how cleaned up do they want it to be? Staff is trying to limit the cost and explore the cheapest option to put it in a saleable condition. He would not be in favor of putting staff in there unless we know how to handle mold contaminated material. (Mayor Larson left at 6:20 p.m.) EDA Minutes (Regular) May 23,2011 Page 3 Chair Bartholomay realized staff is busy, but asked to speed up the process. Member May noted it was not that long ago it was full of senior citizens. She asked that something be brought to Council so we can move forward and get it done. Staff will bring a recommendation to the June 6, 20 II, Council meeting. c) Farmers' Market Update The Market will start on June 16, every Thursday through September 15. There are 16 vendors offering a variety of items. Staffheld a vendor meeting today. Staffhas obtained seven businesses to sponsor the Market. There are events planned for six nights. Staff has numerous ideas for advertising and marketing. d) Roundtable Member May asked about renting the second floor of City Hall and would like this moved up as a priority. She suggested contacting local schools and businesses. She also mentioned moving the entire staff to the first floor and renting the entire upstairs. Member May asked for an update on the license center. Chair Bartholomay mentioned names were going to be changed on the application to reflect City staff. Member Fogarty asked for an update on the license center at the next Council meeting. Economic Development Specialist Hansmeier is waiting for the assignment approval from Dr. Dungy's attorney. This will be forwarded to the EDA when received. Member May asked if they can vacate the utility easement. Staff explained there are two easements; Xcel and Frontier. Xcel is the overhead electric line from the pole on the McVicker lot to Gossips and a line that goes south to the Steakhouse. The Frontier easement is the east 25 ft of Lot 5 . We need to have permission to have parking over their easements. Chair Bartholomay asked that a timeline be set for the lease for the liquor store. Information provided was not the direction Council gave. Member May asked if staff consulted with a professional realtor on the lease proposal. Chair Bartholomay suggested using the realtor that works for the EDA. Member May felt it is worth a small fee to contact the realtor for an opinion on the lease amount. Also the term is for five years, and asked if this consistent with the market. She would not vote on this until she has their opinion. Interim City Administrator Schorzrnan stated part of the upcoming workshop was to be a discussion on the liquor stores. Staff will contact the realtor prior to the workshop. Chair Bartholomay stated the school district would like to rent the entire upstairs of City Hall. Staff asked that we have a serious discussion before moving everyone downstairs. Member May stated it is frustrating we have never had that serious discussion and we are overdue. She expected there to be a cost with moving, but if we could quickly offset that cost, it would be worth it. EDA Minutes (Regular) May 23,2011 Page 4 10. ADJOURN MOTION by Fogarty, second by May to adjourn at 6:42 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~~ :hJ~ Cynthia Muller Executive Assistant MINUTES ECONOMIC DEVELOPMENT AUTHORITY Special Meeting June 6,2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:00 p.m. Members Present: Bartholomay, Fogarty, Larson, May Members Absent: Donnelly Also Present: Tina Hansmeier, Economic Development Specialist; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROVE A GENDA MOTION by Larson, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS a) Approve Various Contracts for the Sale of the McVicker Lot Staff explained the Assignment, Assumption and Release of Contract for Private Development and the Second Amendment to Contract for Private Development related to the sale of the McVicker lot. Dr. Dungy is purchasing the McVicker lot and has assigned his interest in the contract to Philippians 4:19, LLC. MOTION by Larson, second by May to approve the Assignment, Assumption and Release of Contract for Private Development. APIF, MOTION CARRIED. Staff explained the changes included in the Second Amendment to the Contract for Private Development. MOTION by Fogarty, second by May to approve the Second Amendment to the Contract for Private Development. APIF, MOTION CARRIED. 8. NEW BUSINESS 9. CITY STAFF REPORTS 10. ADJOURN MOTION by Fogarty, second by Larson to adjourn at 6:37 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~?r7~ Cynthia Muller Executive Assistant MINUTES ECONOMIC DEVELOPMENT AUTHORITY Special Meeting :June 27, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6: 17 p.m. Members Present: Bartholomay, Donnelly, Fogarty, Larson, May Members Absent: None Also Present: Andrea PoeWer, City Attorney; Tina Hansmeier, Economic Development Specialist; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROVEAGENDA MOTION by Larson, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS a) Approve Various Contracts for the Sale of the McVicker Lot The purpose of the Third Amendment to the Contract for Private Development for the McVicker lot was to amend the closing date and construction timeline. The original contract had a closing date of June 23, 2011 and to break ground on June 30,2011. The obligations with the excess nF funds have been extended out a year, so the developer does not need to break ground by June 30, 2011. This has allowed for time to work out the issue with the staircase used to access the upper level of the Gossips building. Staff recommended reducing the purchase price by $3,000 to allow construction to proceed. The stairway is on the EDA property. Where the stairway is located in relation to the construction of Dr. Dungy's building is very close. This creates a challenge with the construction activity. Once the stairway is taken down, it has to be rebuilt according to code which is estimated to cost $9,000. The EDA would participate in the replacement ofthe stairway by $3,000. Other options would be to flip the building, reduce the width of the sidewalk, but this would involve survey and legal fees to be paid by the EDA. The footings of the building will be 12 inches from the stairway. They need to dig down 8 ft because of the compacted soil. This would cause the stairway to corne down. This was not known at the time plans were prepared. Member May asked if they could build the stairs in the back of the Gossips building. City Attorney PoeWer explained the issue is that because the stairway has been located on the side of the building for so many years, Mr. LaBeau could make a claim for adverse possession aild he would own that property. Member May stated it would be nice if we have to pay a portion to replace the stairs that they be moved to the back. Member Fogarty wanted to look into what it would EDA Minutes (Special) June 27, 2011 Page 2 cost to move the entrance of the upper level of the Gossips building to the back. Then there would no longer be an easement. It would then be Mr. LaBeau's staircase and he could get to his building on his property. She wanted a permanent fix to the problem. City Attorney Poehler stated the EDA will not have a cost associated with this in the future. The stairway would be an issue between the two property owners. Members May and Fogarty wanted to look at options for the stairway to go in the back. City Attorney Poehler stated Dr. Dungy will have to deal with the easement and reducing the price is a cleaner option than not dealing with it. The parties will not move forward without making this claim. Even if we move the stairway to the back, there is still an adverse possession interest against the property being conveyed to Dr. Dungy. Dr. Dungy will own the land, but Mr. LaBeau will have a permanent easement. Mr. Bruce Rydeen, Cerron Properties, representing Dr. Dungy, thanked Tina Hansmeier and City Attorney Poehler for the enormous amount of work they have done to make this happen. The deal was that the EDA was to deliver an easement for the stairway. Mr. LaBeau would not sign it. Dr. Dungy wanted the easement to help clear up the adverse possession issue and to put in language relative to insurance and liability. Without that in place, Dr. Dungy does not have the easement and has the issue with the adverse possession. Dr. Dung is prepared to move forward with his plans. Without executing the easement, this is the best solution. City Attorney Poehler clarified there will not be an easement for the stairway. The stairway for Gossips upper level is on Dr. Dungy's property. Member May asked about liability if the stairway needs to be replaced again. Mr. Rydeen stated Dr. Dungy will assume that liability. City Attorney Poehler stated in the future, Dr. Dungy will make the point that any repair or maintenance will be up to the abutting property owner because from his perspective they are on the abutting property owner's property by adverse possession. This has become an issue because of the construction. Member Donnelly asked about the bottom line. Staff explained the EDA will still net enough money to cover the walkway with the pavers and sidewalk option. Depending on what comes from the estimate, will dictate whether we can do the paver option or have to do fewer amenities. MOTION by Larson, second by May to approve the Third Amendment to the Contract for Private Development. APIF, MOTION CARRIED. The closing is scheduled for June 29, 2011, and construction will start in July. 8. NEW BUSINESS 9. CITY STAFF REPORTS The Big Sombrero will hold a ribbon cutting on July 5, 2011. The ice cream shop is planning on a soft opening June 30, 2011. The ribbon cutting for Savers Choice is June 30,2011. Chair Bartholomay suggested holding EDA meetings prior to a Council Meeting at 6:00 p.m. to free up a Monday. He also asked about televising EDA meetings. Member EDA Minutes (Special) June 27, 2011 Page 3 Fogarty noted this has been discussed in the past and the EDA has decided against it. It is a public meeting, but some parties are not always ready to announce their plans and people prefer a smaller forum to speak. Members agreed on moving the regular EDA meetings to the third Monday of the month at 6:00 p.m. 10. ADJOURN MOTION by Fogarty, second by Donnelly to adjourn at 6:41 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~~~~ ~thia Muller Executive Assistant i ~j << i ! ij ~ ~ ~ ~ u> u> ~ ~ a i ~ !! ~ " '" .., ;\! -~ t I ~~ i'2 o ... ~ ffi ::E Q. ~5 i 5 Q Co 0 I ~ u. z '5 ~ ~ ~ ~ ~ g ~ " .., ~ ~ ~ ~ ~ ~ ~ ~ ~ u> u> ~ ~ u> ~ ~ u> ~ ~ I:!. u> ~ ~ I:!. u> ti a; ~ u> - ~ ~ u> u> u> u> 8S Ii; "lD~,s eB 0 ,,~ ~e ~! 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Il) ~ ~ 0> 0> co 0 N ... 0> 0 0 "<t "<t '" c ri ri ~ ~ .0- Il)" ,., > III E ~ c 5 .. .. .. .. .. .. 8 ~ .. .. .. .. .. .. .. .. .. .. ~ 0 .. ~ 0 0 0 .. .. .. ~ 0 ~ ~ ~ 0 0 0 -' ~ ~Ij:: !;i ~ 0 ... ~ ~ ~ ::E G> ~ ~ iii .. .. ~ .. .. .c ia iiI iiI iiI j:;; j:;; j:;; ::l () ~ Iii ~I~ .. Cl) ~ II> II> .. .. I i fg .. II> .. l') ~ ! CD 5 &l N l3 l3 II> lil ~ CD CD CD ~ .. .. .. .. .. .. .. .. .. Z .c .. .. .. .. .. .. .. .. .. .. () City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: EDA Members FROM: Lee Smick, City Planner AICP, CNU SUBJECT: Economic Development Strategic Plan Policies DATE: July 18, 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 Recruitrnent/Expansion and Retention programs followed by the creation of a marketing plan and the need for resources for Economic Development. Upon review of these policies, staff thought it was important to also add the priority of Administrative Policies and Procedures such as a 7 -member board and additions and updates to the website. The next step is to hold a strategic planning facilitation session at the EDA meeting on July 18, 2011 concerning the above-mentioned items. The facilitation session will also involve naming the action steps and determining which priorities staff should work on in the corning months. Due to time constraints, staff has provided two of the four priorities which include Administration of the EDA and the Marketing component of the plan. ACTION REQUIRED Review the policies and action steps and make comments to the prioritization of them. Respectfully submitted, Lee Smick, City Planner AICP, CNU ADMINISTRATION Possible Strategic Goals · Increase number of jobs. · Increase quality of jobs. · Seek regional and international business development opportunities. · Devote resources and incentives to economic development areas. Possible Action Strategies · Enhance Farmington's image. · Enhance efforts to support business and job development in downtown and north business areas. · Support retention and expansion of existing business. Develop and maintain short and long range goals and design a workable plan to achieve goals. Maintain and expand current relationships with the Chamber, city department directors and community leaders for project support and facilitation. Develop/enhance relationships with the Chamber, City, real estate brokers, financial institutions, etc. to become known as the primary point of contact for any new business or entrepreneurial development in Farmington. Develop and maintain retailer-focused and service industry community marketing materials. Communicate the retail strategy to the community through personal meetings, group meetings, and the media. Possible Issues Need for review of Mission - (does mission accurately reflect the purpose of the current EDA?) Creation of a Vision Provide goals for 2011 strategic plan Review and update as needed SWOT Analysis for 2011 Strategic plan Business friendly (define, what does this mean to each? (Or Farmington business friendly means:- i.e., conditional uses approved 5-0 - show certainty, streamlined permit review process (30-working day - press release Dungy, coordinated communication amongst departments... ) Target businesses for marketing (need to define "target" businesses) 7 -member EDA More art in downtown? Funding for economic development Research and determine revenue sources for EDA Research projects that created deficit (how much time/money spent on this activity?) Devise plan to pay down deficit (3-5-7 years) 1.1 Organizing for Success: Mission of Farmington's Economic Development Authority Action 1.1.1: Develop a path for Economic Development in Farmington Implementation Steps: (a) Develop a Mission Statement and Goals for Economic Development. Current Mission: 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. (b) Adopt Vision and Build Consensus for Economic Success among key stakeholders. Current Vision: Farmington is a vibrant City that combines natural resources and sense of community with an established downtown. The City offers a diverse, growing, economically sustained community with excellent schools, quality jobs, and unique shopping and housing options. (c) Review SWOT analysis for 2011 Strategic Plan. (d) Prepare a plan to promote a business friendly atmosphere. (e) Review City status/progress on economic development matters on a quarterly basis (with council! or community?). (f) Update overall Strategic Plan every 3 years and continue to seek buy in from key local economic development players on an annual basis. 1.2 Organizing for Success: Roles and Responsibilities Action 1.2.1: Transition to a 7-member Economic Development Board of Commissioners. Implementation Steps: (a) Develop steps to implement a 7-member Economic Development Board of Commissioners. (b) Develop a transition plan from the City Council to the Board of Commissioners. (c) Create ads to request residents to apply for the Board of Commissioners. (d) Determine duties and responsibilities of Board of Commissioners. (e) Prepare organizational and procedures manual. Action 1.2.2: Create Economic Development Department Organization Chart Implementation Steps: (a) Show all key staff members and clearly state their role, services offered, and project responsibil ities. (b) Establish consensus on focus and roles regarding Economic Development. (c) Identify all partners (utility, chamber, state departments, FBA) with contact information, post on web. (d) Identify desired roles of partners and how they could assist as resources in the plan implementation. (e) Post on website and share internally and externally with key partners. Action 1.2.3: Monitor and Measure Progress on the Economic Development Strategic Plan Implementation Steps: (a) Use the Strategic Plan's implementation matrix to provide annual reports to Council and staff on progress made on key initiatives. (b) Summarize annually outcomes achieved related to the City's Economic Development Goals for business and job retention/attraction, etc. (c) Actively promote the results to key partners and the City as a whole. MarketinR 2. 1 Promoting for Success: Marketing and Branding Action 2.1.1: Prepare a marketing plan. Specific Steps: (a) Work with the GROW Farmington collaborative to create an economic development message for Farmington. . Initiate and manage a process for developing a new marketing campaign. . Determine objectives and standards set forth in the marketing plan, as well as addressing community needs. . Identify and clearly define strengths, assets, goals, opportunities including the competitive advantages of our community, its amenities, and progress and market it. (b) Define communications, expand and formalize communications with the Farmington business community. . Hold quarterly meetings with the business community to learn about any issues or trends. (c) Develop printed materials, professionally designed to market the City or certain programs. . Research what other Cities use and determine how important printed materials are to the marketing efforts. (d) Coordinate with Communications staff to strategically plan message delivery including newsletter, newspapers, website, social media, Channel 16, etc. (e) Continue to attend or plan new events through GROW Farmington to promote the City to developers, brokers, retailers, entrepreneurs, etc. (f) Develop programs to enhance and highlight the City's economic development efforts via sign age throughout the City. . Explore the use of City street signs to highlight community accomplishments i.e. Playful City, Tree City USA, etc. . Research and plan for an electronic sign in downtown and on 19Sth Street to promote and market Farmington and its economic development efforts. . Encourage blade signs to capture shoppers perpendicular to the street. . Design and install wayfinding signage of awareness of Citywide attractions that witt increase visitor stays in Farmington (g) Promote Farmington businesses via a "shop local" program. . Market benefits of "shop local" awareness to residents. . Utilize the City's business directory to market local businesses to the community both inside and outside of Farmington. . Meet merchants campaign - business spot light at Council meetings, anniversary of businesses at Council meetings, Farmington website, videos. . Coordinate the City's overall marketing effort via newsletter, newspapers, website, social media, Channel 16, etc. highlight the "shop local" program. (h) Staff attends gatherings and conferences pertaining to Economic Development. . Attend gatherings of DEED, EDAM, Dakota County Regional Chamber, etc. (i) Artists' studios and living spaces within the downtown area could be one of the few suitable uses for spaces no longer appropriate for most modern retail. . Re-establish plans for a cultural/arts center located in the city, placing more focus on identifying private sector financing options . Encourage the arts in community plans. City leadership should support for the existing DV AC. . Periodically convene the current artist organization to identify better ways the City can support their objectives. . Encourage more public displays for local art work (City Hall, empty storefronts, Riste Lot, etc.). . Local designers/ artists could be engaged by the City to create artwork for light posts, banners, publications. (j) Research "shovel ready" initiatives to determine if the future industrial park could meet these requirements. . Discuss the City's role in "shovel ready" sites. . Review other "shovel ready" communities in the metro. . Facilitate an open discussion with land owners of the future industrial park to understand their future plans and timeline. 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 - AK Performance Graphics DATE: July 18, 2011 INTRODUCTION The EDA and AK Performance Graphics entered into a Contract for Private Development on May 24, 2010. The developer has requested the time frame for completion of the minimum improvements be extended by one year, to July 15, 2012, and that the language of the Contract be clarified to reflect the EDA subordinate all loans needed for construction ofthe minimum improvements. DISCUSSION The extension is requested to allow the developer additional time to complete the required property improvements. To date the following improvements have been completed: . Flat roof repair . Exterior roof trim . New shop doors . Two garage doors . Interior sheetrock removal . Interior remodel . Utilities The improvements outstanding are: . Pitched roof replacement . Exterior building material and paint . Shop windows . Security system installation Staff feels that this request is appropriate and recommends approval of the First Amendment to Contract for Private Development. The job creation requirement has been fulfilled. ACTION REQUESTED Approve the First Amendment to Contract for Private Development. Respectfully submitted, i5u.~ Tina Hansmeier Economic Development Specialist cc: Adam Kurth, AK Performance Graphics (em ail} Mark Toombs - The First State Bank of Rosemount (email) File FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT AK PERFORMANCE GRAPHICS TillS FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT, 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 AK PERFORMANCE GRAPillCS, INC, a Minnesota Corporation ("Developer"). WITNESSETH: WHEREAS, the EDA and the Developer have entered into a Contract for Private Development dated May 24, 2010 and recorded in the office of the Dakota County Recorder on June 16,2010 as Document No. 2735840 (the "Contract"), regarding a reduced price sale to the Developer of real property (the "Property") legally described on the attached Exhibit "A" and construction of Minimum Improvements on the Property; WHEREAS, Developer is requesting that the time frame for completion of Minimum Improvements be extended to July 15,2012 and that the language of the Contract be clarified to reflect the parties' intent that the EDA subordinate its loan to all loans for construction of the Minimum Improvements; WHEREAS, the EDA is willing to amend the Contract in accordance with Developer's request; NOW, THEREFORE, in consideration of the premises, the Contract and the mutual obligations of the parties hereto, the EDA and Developer hereby amend the Contract as follows: 1. Section 4.3 ofthe Contract is hereby amended to read as follows: Section 4.3. Construction of Minimum Improvements. The Developer shall commence construction of the Minimum Improvements on or before thirty (30) days after closing. Subject to Unavoidable Delays, the Developer shall substantially complete construction of the Minimum Improvements, except for landscaping, exterior matters such as paving, and minor "punch list items", on or before July 15,2012. 2. Article IV is hereby amended to add a new Section 4.6 to read as follows: 4.6. Subordination. In order to facilitate Developer's ability to obtain fmancing for the construction of the Minimum Improvements by the Developer, the EDA shall subordinate its rights in the Mortgage to the lien of all mortgages for the construction of the Minimum Improvements on a form approved by the lender and the EDA Attorney, upon request by the financial institution and the Developer; 3. Except as specifically provided herein, the Contract remains unchanged and in full force and effect. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Contract. IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in its name and behalf, and the Developer has caused this Agreement to be duly executed in its name and behalf, on or as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON By: Jason Bartholomay, President By: Kevin Schorzrnan, Interim Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of , 2011, by Jason Bartholomay and Kevin Schorzrnan, the President and Executive Director, respectively, of 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, on behalf of the public body corporate and politic. AK PERFORMANCE GRAPIDCS, INC., By: STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _ day of 2011, by Adam Kurth, the of AK PERFORMANCE GRAPIDCS, INC., a Minnesota corporation, on its behalf. DRAFTED BY: CAMPBELL KNUTSON, P.A. 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 Telephone: (651) 452-5000 Notary Public EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Lot 4, Block 23, Except the East 10 Feet of said Lot 4, Block 23 of the Town ofFarrnington, according to the recorded plat thereof, Dakota County, Minnesota. 158092v2 1 Major Economic Development Activities June & July 2011 Prepared By: Tina Hansmeier 2011 Active Commercial Projects AK Performance Graphics (interior/exterior renovation) CDA Senior Housing (new construction) Immanuel Dental (new construction) Pizza Hut (build out) Pizza Man Bar & Grill (interior remodel) Savers Choice Market (Econo) (interior remodel) Dodge Middle School- interior remodel This Little Piggy (interior renovation) 2011 Commercial Certificate of Occupancy's Issued Anytime Fitness (build out/addition) Farmington High School Minute Clinic (interior remodel) 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) 2011 Residential Permits A total of 97 new residential permits have been issued as of July11. (66 CDA Senior Apt, 31 single-family homes). There are 13 new residential permits pending. Commercial / Industrial Inquiries Staff received 1 industrial building and 1 commercial space inquiry from 5/19 to 7/13. Several other development related inquiries were received during this time period including several about grants and financial assistance availability. TEH Page I 7/13/2011 Cow Interrupted, Ice Cream Studio (342 3rd Street) Opened July 8th! Downtown Block Party & Car Show Saturday, July 16 · 4:00-10pm · Downtown Farmington Hang out, relax with old and new friends, check out the car show, listen to music and enjoy a wine tasting hosted by Farmington Liquors. Visit www.farmingtoncarshow.com for a schedule of events Farmington Coffee Brew Ha Ha The Farmington Coffee Brew HaHa is a casual networking event held every month at member businesses. Held the 4th Thursday of the month @ 8:00am. . Thisweek News hosted the June Brew Ha Ha at Dunn Bros. . There will be no Brew Ha Ha event in July. Farmington Food Shelf Donations . Blondie's Tavern promoted a food drive to benefit the Farmington Food Shelf. Nicole Barron worked with Blondie's to promote the food drive the community and their customers to help fill the food sheWs critically low non-perishables foods and toiletry items. The donation was made on July 4. . Savers Choice donated to the Farmington Food Shelf as part of their grand reopening celebration. Savers Choice The Savers Choice store manager remarked about the new store format and collected food for the Farmington Food Shelf and made a donation of books through the Feeding Imagination4!l program to Farmington Elementary at the ribbon cutting ceremony on June 29th. The store, located at 115 Elm Street (the former Econo foods location) has made a pledge to regularly donate to local charities. . ~ -: ~~. - Structural Restoration Mr. Bing and Tammy Threet purchased 305 3rd Street from the EDA in May. As soon as closing was completed the Threet's began making improvements to the building. They have since moved their office from Minneapolis (where it has been for 30+ years) to their new building. Structural Restoration is one of several new Farmington Business Association members. TEH Page 2 7/13/20 II Tamarack Ridge Block Party Thursday, July 28 · 4-8pm · Tamarack Ridge Shopping Center - 20700 Chippendale Ave. Bring the entire family to this event and enjoy FREE ice cream and sno-cones, bouncy house, face paining, live music, Fire Department - Smoke House, K-9 Unit demonstrations, National Guard Rock Climbing Wall, along with giveaways and prizes I The event is sponsored by Dunn Bros., Anytime fitness, Blondies, H&R Block, Mobi/e- Link Wireless, Thrivent Financial and Roundbank. This Little Piggy Catering (22280 Chippendale Avenue) The property located on highway 3 (was formerly a BP gas station) has had the underground fuel storage tanks removed from the property. The interested buyer has submitted a building permit to renovate the old gas station into storage and prep space for his catering business, This Little Piggy Catering. The catering business is owned and operated by Farmington resident, Seth Britain. Ugly Mug New owner, Mr. Josh Sanders received approval of his liquor license at the June 20 City Council Meeting. Mr. Sanders has removed specialty coffee items from the menu and has plans to remodel the interior. The beer, wine, and alcohol selection will expand as the Mug transforms into a neighborhood bar. The sandwich menu will remain. Mr. Sanders currently owns and operates Panino Brothers in Apple Valley and is in the process of opening another Panino Brothers in Eden Prairie. TEH Page 3 7/13/2011