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HomeMy WebLinkAbout10.24.11 EDA Packet AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING October 24, 2011 6:30 PM CITY COUNCIL CHAMBERS Jason Bartholomay, Chair Christy Fogarty, Vice-Chair Todd Larson; Mayor, Terry Donnelly, Julie May, Ex-Officio: Douglas Bonar, Geraldine Jolley 1 Call Meeting to Order 2 Pledge of Allegiance 3 Approve Agenda 4 Citizen Comments / Presentations 5 Consent Agenda a) EDA Minutes: August 15, 2011 b) Budget Details: August and September c) Bills: August 13 - October 21, 2011 d) EDA By-Laws 6 Public Hearings 7 Continued Business a) Greater MSP Update 8 New Business a) Pellicci Ace Hardware, Commercial Rehabilitation Grant Applicantion b) EDA Budget 9 City Staff Reports/Discussion/Open Forum a) September/October Activity Report b) Thisweek News: Branding Helps Cities Attract, Retain Businesses c) Small Business Lending Letter and Press Release d) Farmers' Market Summary 10. Adjourn Action Taken Sa.... MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting August 15, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:00 p.m. Members Present: Bartholomay, Larson, May, Donnelly (arrived 6:03), Fogarty (arrived 6:28 p.m.) Members Absent: None Also Present: Tina Hansmeier, Economic Development Specialist; Lee Smick, City Planner; Cynthia Muller, Executive Assistant New EDA members Geraldine Jolley and Douglas Bonar were sworn-in. 2. PLEDGE OF ALLEGIANCE 3. APPRO VE A GENDA Economic Development Specialist Hansmeier moved 7a) to ge). MOTION by Larson, second by May to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA MOTION by Larson, second by May to approve the Consent Agenda as follows: a) Approved EDA Minutes (7/18/11 Regular) b) Received Budget Details: June & July 2011 c) Approved Bills 7/16/11 - 8/12/11 APIF, MOTION CARRIED. 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS 8. NEW BUSINESS 9. CITY STAFF REPORTS a) August Activity Report Pizza Hut opened on Saturday. Rising Stars Daycare is now known as Magnificent Me and they are working on interior remodeling at their new location. Immanuel Dental held a groundbreaking last week. Bernard's Glass is located at 4th and Oak Streets. Kyo Y ook Do Martial Arts have been remodeling the interior of the building. This Little Piggy Catering has closed on their building. K wik Trip is looking to add gas pumps and an addition to their store. EDA Minutes (Regular) August 15,2011 Page 2 Trinity Care Center will be adding a group home for memory care. The playground area for Magnificent Me Daycare is being discussed. b) The Role of Local Elected Officials in Economic Development The EDA was provided with this article. c) 2nd Quarter Minneapolis/St. Paul Market Overview The EDA was provided with this article. Member May asked why the CDBG item is on the Council meeting rather than the EDA meeting. Economic Development Specialist Hansmeier explained the Council has to approve it as they are the subrecipient of the funds. The EDA provides a recommendation to the Council as to how the funds will be used. Member May asked about adding retail business as she understood it was more for non-retail businesses. Staff had intended the funds to be used for all retail and commercial. The language to exclude retail was added in 2008 or 2009 by the County. The County has now said that retail could be included and it will not affect funding 'requirements. Member May wanted to make sure all the funding was not used for downtown and that some funding remains for industrial. The maximum grant amount is $15,000. Economic Development Specialist Hansmeier has been informed by Mr. Russ McGinty that there is one large group showing interest in Vermillion River Crossing and it could be a year or two before anything is final. d) Business Excellence Awards The Chamber Business Excellence A wards will be held September 22. The City's website now includes information on starting a business. The old senior center building has been shown to an interested party. e) Economic Development Strategic Plan Policies City Planner Smick presented strategic plan action steps which have been developed by staff to obtain feedback from EDA members. Once the EDA selects the topics to move forward on, there will be a timeline and responsibilities. City Planner Smick reviewed the organizational plan and marketing portions. The three priorities the EDA set were: 1. Marketing 2. Business Retention and Expansion 3. Business Recruitment Member May asked how this fits with GROW Farmington. GROW Farmington is a subset of this strategic plan and staffhas shown throughout the plan where GROW Farmington could fit as an action step. Chair Bartholomay wanted to make sure that nothing contradicts or doubles efforts from GROW Farmington. EDA Minutes (Regular) August 15,2011 Page 3 Regarding creating a 7-member EDA, Chair Bartholomay wanted to wait for thoughts from the new City Administrator. Member May recalled the EDA would have 5 Councilmembers and 2 residents through next year and let the new Council make that decision. Staff will place this in the time line for 2013. Member Larson suggested looking at QR codes for electronic plan review. City Planner Smick felt we could start with the shop local program and blade signs. We need to have a manager for this so we do not double efforts. Mr. Clyde Rath stated with GROW Farmington, EDA, and community groups some of it is disjointed. We need to get everyone at the same table, at the same time, on the same page. If we have an EDA as 7 members, he suggested having the key player organizations be on the EDA. Looking at the Chamber, FBA, and the EDA as organizations, in order to do economic development, all three players need to be there at the same time. That is a topic to discuss next month at a workshop. GROW Farmington has largely been public comment, and now that needs to be separated out as to which organizations will work on which items. Depending on what is divided up, that can mean some organizational changes for that group. This could take a year to get into place. Member Jolley stated prior to starting the EDA she received a good deal of information to read. Now that we have gone over the plan, what jumped out from the background and history is philosophy of how we want to grow. Before we can take action steps, we need to know what the road map is, and our goal. One thing that seems to be undecided and also in GROW Farmington is do we want to retain our small town personality, or do we want to grow into a suburb with big boxes. Before we can make this go into action, we need to know where we want to end up. City Planner Smick agreed and that is why the mission and vision statement is on the first page of the plan. We need to look at those questions. Ms. Ruthe Batulis, Dakota County Regional Chamber, stated we need to determine what we can leverage to keep the small town feel, and what things do we already do that we can turn over to organizations. 10. ADJOURN MOTION by Larson, second by May to adjourn at 6:57 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant ~1ii t I! ~s ~ II! S g fit i aij~ i J e ~ ~~ j ~ ! o ~ i~ Jli J ~ I il~~UI ! II I III! ~ ~~~,~~~ ~ ~ ~ ~ ~ fit I ~ 1ii !i Dl .., ~ j '5 & l ~ ~I ~ j J ~ ~ ~ ~ 8 ~ :l .., ~ i ~ ~ Ii .., ~ ~ ~ ! .. 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I I ,.. 10 :w: .. ~ 5 il .... .... at ! .... .... .... .... .... 0:: Z .... .... 0 .... N R sd 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: EDA By-Laws DATE: October 24, 2011 INTRODUCTION Attached are updated 2011 Economic Development Authority (EDA) By-Laws. DISCUSSION EDA By-Laws are typically updated and approved at the first regular January EDA meeting. However, because the regular EDA meeting dates and times have changed a few times over the past year, staff decided to update the by-laws with the latest change so they remain current. Subdivision 1 of Section1 has been updated to reflect the regular meetings of the EDA will be held on the fourth Monday of each month at 6:30pm. ACTION REQUESTED Approve and execute the attached EDA By-Laws. 2011 ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS These By-Laws, when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I - Meetinl!s SUBD. 1- Regular meetings of the Economic Development Authority shall be held on the fourth (4th) Monday of each month at 6~I>M._ , ~Y- _regt11ar lIle~ting falling upon a holida.Y shalllle 1:1e.1d,0_n tile _ _ _ _ - -- { Deleted: 00 next following business day at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2 - Special meetings of the Authority may be called by the Chairperson or in written form by any other two (2) members of the Authority, filed with the Executive Director. The Executive Director may also call a special meeting. At least three (3) days before the meeting, the Executive Director shall notify each member of the time, place and purpose of the meeting by causing written notice thereof to be delivered to him/her personally if he/she can be found, or, ifhe/she cannot be found, by leaving a copy at the home of the member with some person of suitable age and discretion residing therein. At least three (3) days prior to the meeting, the Executive Director shall also post notice of the meeting and if applicable, notify each person who has filed an applicable written request for notice, or may, if necessary, provide such other more restricted notice, including but not limited to (as allowed by Statute, such as) M.S. 471.705, subd. IC, paragraph g, "ifa person receives actual notice ofa meeting of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are satisfied with respect to that person, regardless of the method of receipt of notice." Emergency meetings may be held because of circumstances that, in the judgement of the Authority require immediate attention. The notice of special meeting shall state the item(s) to be discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken if any member objects. Any special meeting attended by a majority of the Authority members shall be a valid meeting for the transaction of business that may come before the meeting. SUBD. 3 - At the regular Authority meeting in January of each year, the Authority shall (1) designate the official newspaper; (2) establish meeting schedule for the year; (3) choose a Chairperson and a Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability or absence and in case of a vacancy in the office of Chairperson and until a successor has been appointed and qualifies to fulfill the duties of Chairperson, and; (4) appoint a Secretary and Treasurer, which need not be a commissioner. SUBD. 4 - All Authority meetings, as defined by State Law, including special and adjourned meetings shall be open to the public. The Authority Attorney shall advise the Authority in writing as to his interpretation of the state "Open Meeting Law" and all new members shall be provided such written interpretation. Deleted: K:\TINA'&onomic Development\EDA\By-laws\2011 proposed EDA By-Laws (2).doc "'-------------------------------- Sectioo II Presidio!! Officer: Rules of Order SOOD. 1- The Chairperson shall preside at all meetings of the Authority. In the absence of the Chairperson, the Vice-Chairperson shall preside. In the absence of both, the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one of their numbers to act temporarily as presiding officer. SOOD. 2 - The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules, the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A Motion must be seconded before being considered by the Authority and the The presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent ofhis/her second. But a motion, once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member, while speaking, shall confine himself/herselfto the question at hand and avoid all personal, indecorous or sarcastic language. E. Whenever any member of the Authority desires to speak on any question, which affects him/her personally, he/she shall first vacate his/her chair and shall not resume his/her seat until the matter under consideration has been acted upon. He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held, the presiding officer, shall allow any member of the public, the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting, the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SOOD. 3 - Any member may appeal to the Authority from a ruling of the presiding officer. If the appeal is seconded, the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority of the members present. y------ , Deleted: K:\TINA\Economic ,/ Deve1opment\EDA\By-Iaws\2011 ,/ proposed EDA By-Laws (2).doc 2 Section m - AJzendas SOOD. 1 - The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Wednesday preceding the meeting for publication purposes. SOOD. 2 - Any member may place an item on the agenda by so instructing the Executive Director. SOOD. 3 - No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved SOOD. 4 - The agenda add-ons are subject to approval by a majority vote ofthe members present and further such add-on items may be discussed, but no action may be taken if any member objects. Section IV - Order of Business SOOD. 1- Each meeting of the Authority shall convene at the time and place appointed therefore. Authority business shall be conducted in the following order: 1) Call to Order 2) Pledge of Allegiance 3) Approve Agenda 4) Approve Consent Agenda a. Bills b. Minutes c. Additional Consent Agenda items 5) Public Hearings 6) Continued Business 7) New Business 8) Executive Director's Report 9) Adjourn SOOD. 2 - The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V - Minutes SOOD. 1 - Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence, his/her designee. In the absence of both, the presiding officer shall appoint a secretary pro tem. Resolutions need not be recorded in full in the minutes if they appear in other permanent records of the Executive Director and can be accurately identified from the description given in the minutes. SOOD. 2 - Minutes of each meeting shall be reduced to typewritten form, shall be signed by the taker, and copies thereof shall be delivered to each Authority member as soon as practicable after the meeting. At the next regular Authority meeting following such delivery, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud, but the presiding officer shall call for any additions or corrections. If there is an objection, the Authority shall vote upon the addition or correction. If there are no additions or corrections, the minutes shall stand approved by motion. If T__ 3 ---------------------------- Deleted: K:\TINA\Economic Deve1opment\EDA\By-Iaws\2011 proposed EDA By-Laws (2),doc there is an objection, the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. Section VI - Ouorum and V otinl! SOOD. 1 - At all meetings a majority of all members shall constitute a quorum for the transaction of business. SOOD. 2 - The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote, the minutes shall state: "Abstain: Name". SOOD. 3 - Except as otherwise provided by statute, a majority vote of the quorum shall prevail. Section vn - Executive Director The Authority may appoint and provide for annual performance reviews of an Executive Director. Section VIII - SusDension or Amendment of the Bv-Laws SOOD. 1 - These by-laws may be temporarily suspended by a unanimous vote of the members present. SOOD. 2 - These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX - Effective Date SOOD. 1 - These by-laws have been adopted by the on the day of immediately. ,20 and becomes effective Attest: EDA Executive Director EDA Chairperson Date' Date' ,,--- ----- --------------------------- 4 ------------------------------------------------------------------------------------------------------ , Deleted: K:\TINA\Economic :' Development\EDAIBy-laws\2011 /:/ proposed EDA By-Laws (2),doc 7~ 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: Review and Discussion of GREATER MSP DATE: October 24, 2011 INTRODUCTION GREATER MSP is a regional economic development partnership made up of 11 Minnesota Counties and 2 Wisconsin Counties. DISCUSSION The Itasca Project has evolved into the GREATER MSP Partnership. In March 2011, Michael Langley was named the CEO. Representatives from Ecolab, General Mills, US Bank, Cargill and GREATER MSP make up the composition of the Board of Directors. GREATER MSP is a SOlc3 and is an investor organization not membership based. On September 7, Dakota County hosted a roundtable discussion event which included presentations on Dakota County, businesses thriving in the county and an overview of the GREATER MSP Partnership Organization. The purpose of the event was to gather private and public economic development leaders to help GREATER MSP develop an aggressive regional economic development strategy. On October 5, Dakota County CDA hosted an economic development meeting to recap the September ih event. The protocol for addressing business expansion leads, GREATER MSP Partner Advisory Council, and quarterly economic development meetings were discussed. For the Dakota County region, the CDA was asked to take the lead since it has development authority powers and has made a $100,000 investment in GREATER MSP. The majority ofthe discussion focused on the business lead protocol. GREATER MSP will be involved with leads that meet the Site Selection Magazine Governors Cup definition of 25 jobs, or 50,000 square feet, or $1 million in investment. GREATER MSP staffs goal is to efficiently send leads to each municipality in order for the municipality to return effective sites proficiently. GREATER MSP is forecasting about 500 leads (beginning Jan. 1, 2012) with Dakota County municipalities receiving about 5-10 leads a month. The industries they will be targeting include: finance and insurance, advanced manufacturing, food manufacturing, information technology, health care and call centers. On October 11, the Economic Development Association of Minnesota (EDAM) and the GREATER MSP Partnership hosted the President and CEO ofthe International Economic Development Council (IEDC), Jeff Finkle. Mr. Finkle presented the State of the Industry which focused on what economic developers are , doing around the country based on a survey IEDC conducted of economic development organizations in 2010. Some results of the survey and comments from the presentation are included below: ~ Nearly half of all respondents are experiencing a decrease in their economic development budget. ~ In 2010, the number one issue posing the greatest challenge to organizations focusing on economic development efforts in 2010 was City/County/State budget cuts, compared to lack of access to capital which was number one in 2009. ~ Other challenges Economic Development Organizations are facing include: . Business closures/downsizing . Lack of political support for economic development . Industry restructuring . Inadequate infrastructure . Complicated permit approval process ~ Seeing more Economic Development Organizations focus on supporting entrepreneurship and small business development, ~ Leveraging partnerships is more important than ever and is an important trend that should continue. ~ The U.S. should expect to see 3 million manufacturing jobs come back from China. ~ Economic Development Organizations top objectives for 2011 include: . More business retention . More business attraction . More entrepreneurship and small business development . More strategic partnerships ACTION REQUESTED This item is for informational purposes only; no action is requested at this time. 'le<- 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: Pellicci Ace Hardware, Commercial Rehab Grant Application DATE: October 24, 2011 INTRODUCTION Staff has received an application from Pellicci Ace Hardware for a Commercial Rehabilitation Grant. DISCUSSION Pellicci Ace Hardware has purchased and will be converting the property at 3560 213th Street West from a former empty medical building into a retail space. Their new facility is in need of a new roof, fa!;ade improvements, handicap accessibility improvements and code violation upgrades. The Commercial Rehabilitation Grant Program is a program that provides assistance to property owners that make eligible improvements to commercial properties to prevent deterioration of structures, and encourages projects that correct code violations. Staff believes that some of the work identified as necessary for repurposing this building for use as a retail establishment appears to meet the requirements of the grant program. However, the property will need to be inspected (by city staff) to verify that the intended improvements will eliminate specific conditions detrimental to public health and safety to comply with program objectives. Of the applicant's identified project costs, the follOWing improvements appear to be eligible for program funding, but will need to be verified: plumbing and fire suppression. According to the grant application, the estimated cost of the plumbing and fire suppression work is $25,380. A 1:1 dollar match is required by the applicant. Ifthe plumbing and fire suppression projects were deemed eligible, the maximum grant award, based on the estimated project costs, would total $12,690. The total available balance in the Commercial Rehabilitation Grant program fund is $53,500. Pellicci Ace Hardware is a valuable community asset and staff is very pleased that they have chosen to relocate their business to a site within Farmington. ACTION REQUESTED Authorize award of a City of Farmington Commercial Rehabilitation Grant in a maximum amount up to $35,000 to Pellicci Ace Hardware based on the following contingencies: 1. Receipt of all required supporting documentation per grant program requirements. 2. Verification that improvements identified will eliminate specific conditions detrimental to public health and safety. 3. Approval by the Dakota County Community Development Agency. 4. Applicant and its contractors adhere to provisions regarding federally funded contracts (i.e., Davis- Bacon Act). NAME OF APPLlCANT(S) APfLOCAfNlu QNflORMATHOfNI ~\ Ql if J~ .p ~r If e ~ i B I }rc('l ~OLLV -1- Bu~me~~ Reinvestment Grant Program GlI'3nt Application ADDRESS I ~D G) CITY, STATE, ZIP FOf m Lnj to')] I 1:--1,10 5 5Dci ,-t . J . l.P5. ( i-l~ '~.?' ~+17 1..___.... .. ..._ ,__ PHONE SOCIAL SECURITY # ~ ~llJl$HINJIE$~ DlNrr~/Rl.MA TB~INI LEGAL NAME OF BUSINESS . .IPeJ 1 CQ.. ~A~_ .. t!l~ c~___.._...... -. ADDRESS 1 i ~ Ef n'l St- \r e tj- CITY,STATE,ZW I=GC,VPJIAj5 TIft); :..}JjJ ....56D~_~ BUSINESS PHONE lLY S J L.U~ ~ .~l~ 77 .7 . FAX FEDERAL TAX 10# DATE ESTABLISHED III ~D I J Cj CJ 3 SOLE PROPRiETORSHIP CORPORATION v' PARTNERSHIP CONTRACT FOR DEED ,Oe-J J,' C-r!-c'." MORTGAGE PRINCIPAL LESSEE I~ C( trdUJO;ve. , TERMS OF LEASE OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE: NA~E - --~Ct- it.V- k --PeIn-C;'il:--n-- INTEREST OVJnel'. '" NAME INTEREST NAME INTEREST PROPERTY INFORMATION ESTIMATED DATE OF BUILDING CONSTRUCTION IDI} / ~OJl 4Jo,oo{) . ESTIMATED CURRENT TAX MARKET VALUE NUMBER OF STORIES NUMBER OF BUSINESSES I NUMBER OF BUILDINGS NUMBER OF APARTMENTS 0 HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? '---(L() PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: !JJQ..-.f1}", Ui1t1~O 351,,0 d{/3 Y}..Sf ltJ) fiwnl~tf:: /-IlJ-fwm Q1// ,il)1fJit/yudJ-m ~e, o/iJ ~~4p()(U,!tJ1J lif1;.J!-tc t/.BAolw~, 'rh.a- bwJ~~ ib.J JJG ~ tJj rL ruuJ ~, ~ tit!-adL ~.LI'YLMrI.<,) I I I J\JJLncLt ~ &.~~~ ~~ !J.-t1 d.- wch.. V/~m upCfM1-()~, U ESTIMATED PROJECT COSTS EXTERIORlFAc;ADE ~JP().Ln~~! lmd.lf1Jowdc-.., pOA.Ju}d-esTIMATED COST INTERIOR ()U!ntLluhm oJ- ../Lunodtt.J. ESTIMATED COST . ELECTRICAL !U.-Il)~ ~rr ESTIMATED COST PLUMBING hntuM..-p O(or!.e(ja~ bCL~ESTIMATEDCOST MECHANICAL ~~L'f;- + A (L, ESTIMATED COST FIRE SUPPRESSION ...~nJ1,uu ,~1-unu ESTIMATED COST J 1&/970 . S 1,000 37, ~50 , /3./ DOl) / h;6Dl:r.-- I ;) I 3g-0 TOTAL ESTIMATED COST c1hD. DOO I fUNDING INfORMATION ADDITIONAL SOURCES OF FUNDING $ 1'50/000 , $ 5o,OOu $ -D - TOTAL LOAN AMOUNT REQUESTED APPLICANT FUNDS ADDRESS ~O$-f1-e- 'RoelL ,Ban Iz J~)L/D CII}LDDfA]C/~/~ A-viLnlU- w€S-P , I CITY, STATE, ZIP 'fikym lj/)crh) n I J1 )J 55{);;)4 .. J ' CONTACT PERSON . .Dave-'dAJleeJ leu'. PHONE # .. t?5L1d~_3/fl)lL.1 NAME OF FINANCIAL INSTITUTION REQUIRED ATTACHMENTS 1. Financial statements - Provide balance sheets and income statements for the past two years 2. Personal financial statements of all principals 3. Current satisfactory credit report of owners/partners 4. Corporate resolution (if applicable) 5. Completed W-9 form 6. Most current property tax statement 7. Letter from the county clerk/treasurer verifying that there are no outstanding judgments or tax liens against the property IlWe declare that the information provided on this application and the accompanying attachments is true and complete to the best of my/our knowledge. IlWe understand that any intentional misstatements will be grounds for disqualification and that the City of Farmington has the right to verify this information. IlWe agree to provide the project coordinator reasonable access to information and reasonable access to the construction project site so that they may monitor project implementation. APPLlCANT(S)_ _ . N\aJz. \)~. DATE ~ \ \~ \ \ \ DATE DATE auJ.;j,onJ. ffirB-~ J tJ1.J 11M Uc' 4Icu>dLiJt1/uL.. -o,rttlCf FUNDIN~NFORMATION Ut)LJ14 Co.-'hC/}/0 A 1:1 match is required by the applicant. For every dollar contributed to ~Aing eligible project costs by the Commercial Rehab grant program, the applicant must contribute one dollar. CONTACT PERSON PHONE#. TOTAL GRANT AMOUNT REQUESTED $ APPLICANT FUNDS $ ADDITIONAL SOURCES OF FUNDING $ NAME OF FINANCIAL INSTITUTION ADDRESS CITY. STATE, ZIP REQUIRED ATTACHMENTS 1. Financial statements - Provide balance sheets and income statements for the past two years 2. Personal financial statements of all principals 3. Current satisfactory credit report of owners/partners 4. Corporate resolution (if applicable) 5. Completed W-9 form 6. Most current property tax statement 7. Letter from the county clerk/treasurer verifying that there are no outstanding judgments or tax liens against the property I/We declare that the information provided on this application and the accompanying attachments is true and complete to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for ,\" disqualification and that the City.of Farmington has the right to verify this information. l!We agree to provide the project coordinator reasonable access to information and reasonable access to the construction project site so that they may monitor project implel1lentation~ DATE \ I:) \ \ \ \ \I DATE I ~ } I ,-I, J DATE MINNESOTA DATA PRACTICES ACT-TENNESSEN WARNING In accordance with the State of Minnesota Government Data Practices Act, the City of Farmington is required to inform you of your rights as they pertain to the confidential information collected from you. Confidential data is that information which is not available to you or the public. The personal information we collect about you is private. The information collected from you and from other agencies or individuals is used to determine the disposition of your application with the City. The dissemination and use of the data collected is limited to that necessary for the administration and management of the Business Reinvestment Loan Program. Persons or agencies with whom this information may be shared, include: 1. City of Farmington personnel administering the grant program. 2. The Dakota County Community Development Agency. 3. City Council Members, Economic Development Authority Members 4. Contracted private auditors. 5. Law enforcement personnel. 6. Those individuals or agencies to whom you give your express written permission. NOTICE PURSUANT TO MS.60A.955 roperty Tax Statement 8/30/11 9:21 PM Taxpayer copy Dakota County Treasurer-Auditor _, 1590 Highway 55 . (:4) I/~' Hastings MN 55033 Save thiS copy for future reference. ~~<~~jkl 651-438-4576 Fax 651-438-4399 2011 Property Tax Statement (-~ www.dakotacounty.us " n ~~~~J32~~~~J~\ed ~ Atl\n~~t~~:~T~I;;~114RANGE19 ID: 3211419 ff~AYlSS'.~lPO 2\b""" es:.+. \J\\. PTOFSW1/40FNW1/4BEG Payable 2010 Payable 2011 Improvements 0 0 ~~ovements: 0 0 Estimated Market Value: 1,629,300 744,900 Taxable Market Value: 1,629,300 744,900 Property Class: COMMERL PREF COMMERL PREF TAXPAYER: FARMINGTON STALLIONS LLC 13683 DUNBARYWAY APPLE VALLEY MN 55124 1. Use this amount on Form M1PR to see if you're eligible for a property tax refund. File by August 15. If this box is checked, you owe delinquent taxes and are not eligible. D 2. Use this amount for the special property tax refund on schedule 1 on Form M1 PR. $0.00 3. 4. Property Tax and Credits Property taxes before credits Credits that reduce nrop-ertv taxes. . . A. 'Homesteaa anti AgnCiJltural Market Value Credits B. Other Credits $0.00 $0.00 $58,278.90 $58,278.90 5. Property taxes after credits Property Tax by Jurisdiction County: A Dakota County Levy B. Regional Transit Rail City or Town: FARMINGTON State General Tax $5,500.71 $51.66 $9,942.51 $14,606.68 $10,810.07 $2,374.77 $263.73 $455.62 $0.00 $14,191.52 $81.63 $58,278.90 (Total) $0.00 6. 7. 8. 9. A Voter Approved Levies B. Other Local Levies 10. Special Taxing Districts . . .. A Metropolitan Special Taxing Districts B. Other Special Taxing Districts C. Tax Increment 192 School District: D. Fiscal Disparity 11. Non-school voter approved referenda levies 12. Total property tax before special assessments 13. Special Assessments Principal: Interest: 14. $58,278.90 lttp: //servlces.co.dakota.mn.us/TaxStatement/propertyTaxStatement.aspx $0.00 $27,364.30 $0.00 $0.00 $27,364.30 $2,506.40 $33.46 $4,793.60 $6,938.60 $4,525.60 $1,043.64 $113.70 $195.52 $0.00 $7,173.78 $40.00 $27,364.30 $0.00 $0.00 $27,364.30 Page 1 of 2 VOLUME No. 350 PAGE 151750 CERTIFICATE OF TITLE No. 151750 Transferred from Certificate Number(s): 148068 by Document Number 683552 Originally registered on the 18th day of October, 1963, Volume 62 Page 302 STATEOFMINNESOTA } COUNTY OF DAKOTA S.s. REGISTRATION This is to certify that F.......... """~ "r . '''''.,,,;.~,,~ """'..F .."" .<1.- "'., ~. ""'- II is now the owner of an estate, in fee simple of and in the following described land, situated ill the County of Dakota and State of Minnesota, That part of the N 1/3 of the SW 1/4 of the NW 1/4 of Section 32, Township 114,Range 19, Dakota County, Minnesota descnbed as follows: Beginning at the northwest comer of said SW 1/4 of the NW 1/4; thence South 0 degrees 14 minutes 12 seconds West (assumed bearing) along the west line thereof301.l2 feetto the north line of the South 140.00 feet of said North 1/3 of the SW 1/4 of the NW 1/4; thence North 89 degrees 58 minutes 00 seconds East along said north line 190.01 feet to the east line of the West 190.0ll feet of said SW 1/4 of the NW 1/4; thence South 0 degrees 14 minutes 12 seconds West along said east line of the West 190.00 feet 21.00 feet; thence North 89 degrees 58 minutes 00 (continued on last page) SubJed 10 the ent:Umbrmu:es. liens and interest noted by dIe menJorial W1derwrltlen or endorsed hereon; and subJed to d", follolving rigfJl$ or encwnbrances subsisting. os provided in Section 508.25. Mlnneso'" Statn/e3. nmne(y: . I. IJens. c1nims or riglJ/s arising ander dIe law:; or tl", Constttutlon oflhe United Slates. wlJ/dJ tlJe statuJes of this s"'le caanot require tn. appear of record. 2. Any real property tax or special ossessmenl. . 3. Any lease for a period not =ending three years. when dleTe Is actual occupation of the premJses ander tlJe /ease. 4. All rlglJls in public h1ghwllJlS upon the land. 5. Sucil right of appeal or righl to appear and contest the application os Is allowed by low. 6. 77le rights of any person In possession under deed or contract for deed from too owner oftlJe certificate of title. 7. Any outstanding mechanics lien rights wiJicl'lIIlIJI exist underSectian 514.01 to 514.17. That the said Fannington Stallions LLC, a limited liability company organized and existing under the laws of the State <1fMinnesota, having its principal place of business at 13683 Dunbary Way, in the City of Apple Valley and State ofMN. {::>v'r\ \". 0..."'- Certificate of Title Number 151750 page 1 be 3 MEMORIAL. 250412 12/13/1991 4:30PM 12/12/1991 James N. Dolan ~YNNING IN FAVOR OF Lease Health One Physician Services Corporation 250414 12/13/1991 4:30PM 12/12/1991 James N. Dolan RUNNING IN FAVOR OF First Refusal and Option Agreement Between Fannington Clinic Limited Partnership and South Suburban Medical Center, Inc. (and other lands) 250415 12/13/1991 4:30PM 12/12/1991 JamesN.Dolan Cemrlcate of Tirle ~umber 151750 pa~e .1 of 3 MEMORIAL 250416 12/13/1991 4:30PM 12/12/1991 James N. Dolan RuNNING IN FAVOR OF Subordination of First Refusal and Option Agreement 250414 See Doc. (and other lands) 250417 12/13/1991 4:30PM 12/12/1991 James N. Dolan RUNNING IN FAVOR OF Subordination ofDeelaration of Covenants, Conditions and Restrictions 250415 See Doc. (and other lands) 250418 12/13/1991 4:30PM 12/12/1991 James N. Dolan RUNNING IN FAVOR OF SubordiDation; Non-Disturbance and Attornment Agreement 250412 See Doc. 258906 06/19/1992 12:48PM 06/09/1992 James N. Dolan RUNNING IN FAVOR OF EasemeDt Ag.w. . . By and Between South Suburban Medical Center, Inc. and Farmington Clinic Limited Partnership, a Minnesota limited parblership (and other lands) 258907 06119/1992 12:48PM 06117/1992 JamesN.-Dolan RUNNING IN FAVOR OF First Amend to Short Foxm Lease 250412 258910 06119/1992 12:48PM 06/17/1992 James N. Dolan .al.JlliNINo IN FAVOR OF ASsign. LeaSe 250412 . Great Northern Insured Annuity Corporation 288210 10/12/1993 8:26AM 10/08/1991 James N. Dolan RUNNINOrN FAVOR OF Variance South Suburban Mecial Center (See doc.) 549446 MORTGAGE 10/0612004 4:00PM 10/0112004 $1,300,000.00 Joel T. Beckmm RJ)NNING IN FAVOR OF MOR:rGAGE, SEC. AGREE. AND ASSIGNMENT OF RENTS U.S. Bank N.A. SUBORDINATION 10/06/2004 4:00PM 10/0112004 AGREEMENT "Rr.lNNrl\.rA.Thr FAVOR OF 549447 Joel T. Beckman =-=-::::::;;.:evfTitleNumber151750 IL12= : ~.. MEMORIAL 683553 RELEASE 08/25/2011 3:12PM 08222011 Ioel T. Beckman Rt./NNING IN FAVOR OF ReleaSe of Mortgage. Se:. .-\,gree. and Assign. of Rents Releases Doe. No. 5.19-1..6 683554 )'IORTGAGE 08125/2011 3:12l'M OS 25 2('11 S~5(i,OOO.00 Ioel T. Beckman BUNNING IN FAVOR OF Castle Rock Bank ~ \\1TNESS WHEREOF, I have hereuntostihsciibed my name and affixed the seal ofmy o~te .. this 25th day of August, 2011 . . Ioel T. Beckman, Registxar ofTitlllS, In and for the County ofDakota and Stale ofMinnesola. . By CffL/ , Depu,,' .... .... . Legal continuation: seconds East 145.28 feet; thence North 9 degrees 13 minntes 05 seconds East and its northerlyextenSi0I1:}22.04 feet to the north line of said SW 114 of the NW 114; thence South 89liegrees 58 minnles 51 seconds West along said DOrtli lliu:)~~4~ feet to the point of beginning. EXCEPT that part taken for Stale Tnmk lIighway 1'0. 3 (fonnerly State Trunk Highway No. 218) amia1S9.EXCEPT that part taken for County Road No. 72 (formerly townsbiproaci). . Together with an Easement Agreement recorded as DOC1lIl1lmtNo. 258915. Together with and subject to a party Wall Agreement rec!)l:dedas' j)ocument No. 250409. Together with and subject to an Easement Agreement tecord~ ll1' })PCUJDe)lt No. 250410 containing a grant of a seweriia$emt:nt to Farmington Clinic. . .. . . City of Farmington Community Development Block Grant Commercial Rehabilitation Grant Program City of Farmington Community Development Block Grant Commercial Rehabilitation Grant Program The City of Farmington has received funding from the Dakota County Community Development Agency (CDA) in the form of Community Development Block Grant (CDBG) funds. These funds will aid the City in supporting local businesses by assisting with financing for projects that upgrade existing commercial buildings within the community. The Dakota County CDA distributes the funds on behalf of the Federal Department of Housing and Urban Development (HUD). Projects that receive CDBG are subject to HUD requirements. The following policies and procedures have been developed for projects undertaken with CDBG dollars in the City of Farmington. These policies are subject to change as recommended by the Dakota County CDA and/or the Federal Department of HUD. Program Purpose To provide financial assistance to property owners who are making eligible improvements to eligible commercial properties within the City of Farmington. Type of Assistance CDBG Grant funding. Grant Terms & Requirements No more than one grant may be granted per property or per applicant during a funding year which currently runs from July 1st until June 30th. A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Commercial Rehabilitation Grant Program, the applicant must contribute one dollar. The amount of grants to be awarded shall be $5,000 or greater, but not to exceed $35,000. Program Objectives a. To prevent deterioration of commercial properties and discourage blight; b. Encouraging projects that correct code violations and eliminate accessibility restrictions to the extent necessary to eliminate specific conditions detrimental to public health and safety; c. To help maintain and expand the variety of options for business uses in existing commercial space within the City. 09/19/2011 1 Eligible Recipients 1. The property must be located within a commercially zoned district or a district that has a commercial component. This would include the following zoning districts: B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use and R-T. 2. All individuals having an ownership interest in such structure or an interest as purchaser in a contract for deed must join in the application and sign the grant agreement with the City, including the contract holder. 3. Leaseholders are eligible to make application for CDBG funds. The Farmington Economic Development Authority and City Council, on a case- by-case basis, will review such applications to determine their eligibility for funding, based on the length of the lease on the property and length oftime the business has operated in Farmington. The property owner must join in the application and comply with Program requirements. 4. Projects that would result in permanent displacement of either residential or business tenants will not be financed with CDBG program funds. Any temporary displacement of tenants resulting from project activities shall be the responsibility of the property owner. Tenants shall be fully informed of the project plans, and the expected impact on them, and shall receive aN otice of N ondisplacement or Displacement, as appropriate, prior to the start of rehabilitation. Property owners will be required to provide relocation assistance to tenants as required under the Uniform Relocation and Real Property Acquisition Policies Act of 1970. 5. No member of the governing body of the locality, or official, employee, or agent of the local government who exercises policy, decision-making function or responsibilities, including members of the Economic Development Authority (EDA), Planning Commission and Farmington City Council, in connection with the planning and implementation of the Commercial Rehabilitation Grant Program shall directly or indirectly benefit from this program. This prohibition shall continue for one (1) year after an individual's relationship with the local government ends. Any potential conflicts of interest under Minnesota Statues 412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570, Uniform Administration Requirements, shall be evaluated on the basis of a legal opinion to be requested from the Farmington City Attorney. 6. Ineligible project costs include but are not limited to interior remodeling improvements, furniture, financing fees, business or operating costs, equipment, removable fixtures and building acquisition costs. Costs incurred prior to the aRPlication date are not eligible for program funding. 7. Eligible projects must comply with Federal Anti-Pirating Regulations. Any assisted business relocating to the City of Farmington must not relocate more than twenty-five jobs from any other labor market area or 0.01 % of jobs in the Labor Market Area, unless forced to relocate by an action under the Uniform Relocation Act. Farmington is part of the Minneapolis-St. Paul Metropolitan Statistical Area Labor Market Area. 09/19/2011 2 Program Definitions Program Admininrator The Program Administrator shall be the Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123, Phone (651) 675-4400. Staff shall work with the Project Coordinator in administration of all aspects of the Program. Applicant Any person seeking to obtain assistance under the terms of this Program. Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished. Project Coordinator The Project Coordinator for the Program shall be an employee of the City of Farmington and shall provide assistance and management relating to improvement activities. The Project Coordinator is responsible for program marketing, application intake, scheduling of inspections, preparation of contracts and grant documents, and processing of payment requests. The Project Coordinator serves as the contact person for rehabilitation from application to project close-out and shall be available during regular business hours. Target Area Locations that are in commercial zoning districts or districts with a commercial component, including: B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T. Eligible Improvements: Fa~ade improvements, corrections of code violations, code improvements and correction of handicap accessibility issues to the extent necessary to eliminate specific conditions detrimental to public health and safety. Special Conditions Contractors: All project work undertaken with CDBG funds must be completed by bona fide contractors who are licensed (as applicable) and provide proof of insurance. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review will follow the procedures outlined in the handbook for Historic Preservation in Farmington. Eligible "historic properties" are those which have been designated or determined eligible for designation as Farmington Heritage Landmarks; within or immediately adjacent to 09/19/2011 3 the boundaries of a historic district; or listed on the National Register of Historic Places. The City will work in conjunction with the State Historic Preservation Office to implement Federal preservation guidelines as they relate to eligibility and certification of work. If the building or the unit was originally built prior to 1950, the property will be evaluated for historical significance by the Historic Preservation Commission (HPC) using the eligibility criteria in the Farmington City Code. If it has been determined that the property is eligible for Farmington Heritage Landmark Designation, a review of the proposed rehabilitation work is necessary, and the work must be in conformance with the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Once work is approved by the Historic Preservation Commission and applicable preservation standards have been met, a Certificate of Appropriateness will be issued by the HPC. Davis-Bacon Wage Rates: All contracts in excess of$2,000 that will be funded through the CDBG program require compliance with the Federal Labor Standards Provisions of the Davis-Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by the U.S. Department of Labor. Appropriate wage information must be included in the bid selections and contract documents. The Project Coordinator must approve all payrolls prior to the release offunds. Fair Housing & Equal Opportunity The City of Farmington and the Project Coordinator will work affirmatively to ensure that all persons, regardless of race, color, creed, national origin, sex, religion, marital status, age, handicap, familial status or reliance on public assistance will be treated fairly and equally for purposes of participation in the Program. Access to program information and materials will not be denied to any person for any reason. The City will encourage the participation of women and minority-owned businesses and local businesses and suppliers who meet Section 3 Criteria. Lead Based Paint The program will conform to the requirements of the Residential Lead Based Paint Hazard Reduction Act of 1992 for any assisted property that contains residential dwelling units. All program applicants must provide notification of the hazards of lead based paint to impacted tenants. The Building Official shall inspect for defective paint surfaces at the time the property is being inspected for code compliance. All defective surfaces will be corrected in accordance with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices. Additionally, contracts for rehabilitation work will include language explicitly prohibiting the use oflead based paint. Data Privacy All information provided by applicants under the Commercial Rehabilitation Grant Program shall be maintained in accordance with the Minnesota Data Practices Act and the City's Subrecipient Agreement with the Dakota County CDA. 09/19/2011 4 Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon funds availability. Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved. Prior to project approval, the following will be ascertained: a. Title verification; b. All real estate taxes and any City fees or charges are current; c. All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2. The extent to which the project meets the program objectives; 3. The degree of the project's overall impact on the surrounding area. 4. An environmental review of the property shall be conducted by the CDA. Allow 60 days for the completion of the environmental review. S. Property details for properties older than SO years will be submitted to the State Historic Preservation Officer (SHPO) by the CDA for determination of the property's historical significance. Ifnecessary, applications competing for limited funds may be selected based upon these criteria. Projects that are not financially feasible within the constraints of available funding will be eliminated from consideration. Property Inspections Upon determination that a property owner applying for rehabilitation assistance is eligible based on the program guidelines, the Building Official shall conduct an inspection of the property to determine the corrective actions necessary for the property to conform to City of Farmington building code standards. Scope ofW ork The Scope ofW ork will have two (2) components: 1. Upon completion of the initial inspection, the Building Official shall prepare a report indicating the work necessary to bring the property into compliance with Farmington building codes inclusive of the Minnesota Energy Efficiency Standards. In addition, the Project Coordinator will complete the CDBG Slum & Blight for Spot Basis National Objective Form. Both reports will be used for the project to satisfy the intent of the Program and shall be included as a part of the Scope of Work. 2. The property owner shall provide a report or elevation drawing indicating any planned improvements. This report will be reviewed by the City of Farmington and the HPC if applicable (see historic properties). 09/19/2011 5 Project Approval The final application will be approved by the Farmington City Council; following review by City of Farmington staff and recommendation by the EDA. Improvements approved for CDBG funding will be based on the severity of the correction needed and the ability of the applicant to complete the project with CDBG funds and private funds. The Dakota County CDA will determine final approval. Veri:fication of availability of private funds will be required before final ap.proval of the project. Competitive Bidding A minimum of three (3) competitive bids must be solicited and two (2) competitive bids must be obtained for each improvement project the applicant proposes for CDBG funding. Applicants may use any contractor they choose, as long as the contractor meets the requirements listed below. All contractors must provide a Certificate of Insurance Coverage. Contractors must also certifY that they will comply with the requirements of the Davis-Bacon Act. These rates will be provided to the applicant as a part of the contractor's instructions. Awarding Contracts The contract will be between the applicant and the contractor. The contract will be awarded to the lowest bid unless one (1) of the following circumstances occur: 1. The bid is determined to be unrealistically low and the contractor agrees to withdraw the bid; 2. The contractor has failed to follow the procedures as outlined in the instructions to the bidders; 3. The owner does not want the low-bid contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. 4. There appears to be collusion between two (2) or more contractors, in which case, all bids in the questionable trade category will be thrown out and different contractors will be solicited for bids; and 5. The contractor fails to bid according to the specifications, and it proves impossible to compare that contractor's bid with the other bids received. Approval by the Economic Development Authority (EDA) and City Council Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA. Upon EDA approval, the item will be forwarded to the City Council for final approval. If approved by the City Council, a Grant Agreement will be signed by the applicant and a designated City official. This Agreement will outline the terms and conditions of the project, including the City's role and the applicant's responsibilities, and any corrective actions to be taken in the event ofa dispute. Notice to Proceed A preconstruction conference will be held with the Program Coordinator, the Building Official, the applicant and contractors and subcontractors to ensure awareness and compliance with Davis-Bacon requirements and any other 09/19/2011 6 requirements necessary to begin the project. A notice to proceed will be issued after the preconstruction conference. The contractor will normally have one (1) year in which to complete the awarded contract. If construction work does not begin within 90 days of the award of contract the Grant Agreement is null and void: however the applicant may apply for one extension ifnecessary. The length of the extension will be determined on a case-by-case basis. Change Orders All change orders to the current contract require the approval of the Project Coordinator as well as the signatures of the owner and contractor. Acceptance ofW ork Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the owner and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable State law. CDBG funds shall not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Farmington, the Farmington EDA, and the Dakota County CDA and their respective officers, employees, and officials from any damages or liability arising from, or occurring as a result of, the activities funded through this Program. CDBG Payment All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the owner and the City of Farmington. Payments will be made only after all code improvements and exterior work have been completed according to the authorized scope of work. and have been acc~ted by the owner. Funds will be released once all improvements are complete to the satisfaction of the City Building Official and once title ownership, Davis-Bacon wage payments and other requirements are satisfied with the CDA and the City. The Building Official and City staffwill inspect the final project, and a Certificate of Occupancy (CO) or a Temporary Certificate of Occupancy (TCO) will be issued by the Building Inspections Division. The CO or TCO is required before the CDA releases funds. Payment may be made directly to the contractor or in reimbursement to the owner, upon presentation of paid receipts for approved work. The following must be presented to the Project Coordinator in order to process payment: 1. Billing Statement/Paid Receipt 2. Sworn Contractor's Statement 3. Completion Certificate 4. Weeldy Payroll Reports 09/19/2011 7 Private Financing Applicants are responsible for all costs incurred as a result of not accepting the lowest bid, and costs above and beyond the availability of CDBG funds as outlined in the Program. Applicants shall contact a lending institution of their choice to arrange financing for their portion of the project. Applicants should request a letter of credit or other suitable documentation from the lending institution to prove that private funds have been committed. This letter is to be submitted with the completed application. If an applicant is not using a lending institution, other evidence of committed funds must be presented at the time of application. Escrow The property-owner may be requested to establish an escrow account or other private account for deposit of the private funds that will be used to complete the improvement project. The CDBG funds shall be reserved on the Owner's behalfby the Dakota County CDA, but shall be drawn from the U.S. Treasury only when actually needed for disbursement to contractors or vendors, or in reimbursement to the Owner. Appeals Process Appeals concerning eligibility for the Commercial Rehabilitation Grant Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The Coordinator will contact the applicant and attempt to rectifY any concerns. A written response will be made within fifteen (15) days. 09/19/2011 8 qb City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor and Council members FROM: David McKnight, City Administrator Teresa Walters, Finance Director Tina Hansmeier, Economic Development Specialist SUBJECT: 2012 EDA Budget DATE: October 24, 2011 BACKGROUND During the 2012 Budget discussion, the Council designated $175,000 of the Fiscal Disparity revenue towards the Economic Development Authority (EDA) deficit. However, no funding source was designated for operations. In the past, the HRA/EDA has utilized funding from the sale and rental of property, sign revenue, and Tax Increment Financing (TIF) administration in order to operate. TIP administration revenue can only be used for legal, audit, and other expenditures related to the TIP districts. Therefore, this cannot be considered a revenue source. At the end of 2010, the EDA had a deficit balance of$242,241. This deficit was made up of the following: Cash Loans Receivable (Vinge/Cee Escrows a able Accounts Payable Advance from other funds LOOKING FORWARD At the end of2011, we anticipate the fund balance to be: Cash Loans Receivable Escrows a able Accounts Payable Advance from other funds With the 2012 transfer and the budget shown on attachment B, we anticipate the Fund balance to be $17,272: 2012 Budget Beginning Change Estimated Balance 2012 Balance Cash $59,654 (52,041) 7,613 Loans Receivable (Vinge/Ceef) 59,271 (4404) 54,867 Total Assets 118,925 (56,445) 62,480 Escrows payable (7613) (7,613) Accounts Payable (124) 124 0 Advance from other funds (268,000) 230,405 (37,595) Total Liabilities (275,737) 230,529 (45,208) Interest Income 2,284 Transfer In 175,000 Other Services/Charges (Audit) (3,200) FUJidBalance $(156.812) 174,084 17,272 This would keep enough cash in the fund to cover the Escrows owed. DISCUSSION 2012 Preliminary Budget In an effort to ensure we no longer budget for expenditures without a revenue source (which would result in an additional contribution to the EDA deficit), a balanced budget was provided in your preliminary budget book. See Attachment A (enclosed) or page 109 of your 2012 preliminary budget book. The information provided in this budget needs to be revised. See Attachment B for a revised budget. Since we sold the old liquor store property, we no longer have rental income. The interest revenue (Vinge loan) is anticipated to be $2,284. In the preliminary budget, the "other services" line included audit costs only. We need to add additional expenditures to the budget: 1. Electricity for the sign ($475): A potential funding source could be the sale of advertising on this sign. We currently do not charge for this service. 2. Legal services ($2,000 - $12,000): For normal operations within the EDA, we need approximately $2,000 for legal services. However, if we sell property or do any other major projects, this could increase by over $10,000. The only property remaining is the Riste lot which is currently listed for $17,900. The funds from this lot can be utilized to pay for the legal fees, closing costs, and realtor's commission. Ifwe don't sell it to a developer that meets the CDBG national objective, we will need to find a funding source for the CDBG repayment in the amount of approximately $19,850. 2 3. Mileage ($200): For travel to economic development meetings outside of the community. We could potentially use a city vehicle for travel. 4. Ex-Officio Stipend ($240): There is currently no funding source for this. OPTIONS: 1. Transfer $10,000 from Fiscal Disparities for operations, to pay down the inter-fund loan, and/or potential projects to the EDA from Fiscal Disparities in 2012 and set a levy for the EDA in 2013 or determine another revenue source for operations and future projects. 2. Transfer $50,000 from Fiscal Disparities to wipe out the inter-fund loan and cover operations and potential projects. Set a levy for the EDA in 2013 or determine another revenue source for operations and future projects. 3. Do not use the entire $175,000 against the inter-fund loan. Utilize only what is left after operations at year end. This will reduce the fund balance and increase the loan balance. This is the option shown in the "Looking forward - 2012 Budget" shown above. The loan balance would be approximately $37,595, if there are no other expenditures in 2012. The balance could be paid over time with the proceeds from the Vinge loans. Set a levy for the EDA in 2013 or determine another revenue source for operations and future projects. 4. We could eliminate the EDA and move all expenditures and revenues into the general fund. This would not increase the general fund budget (If we utilize sign revenue) since you would eliminate the ex-officio stipend and the audit costs: Vinge Loan interest Sign Revenue Electricity for the sign Legal Services e(decreasr)to the General $1,809 The City of Farmington is facing some of the same challenges other cities are facing - a down economy resulting in slow economic growth. The City's community development department can assist in bringing development to the City as well as answer questions from existing and potential businesses. The EDA does not currently have any plans that cannot be carried out by the City. Once development picks up and a funding source has been designated, we could re- establish the EDA. RECOMMENDATION Staff recommends Option #2 since it will eliminate the Inter-fund loan and provide funds for operations in 2012. 3 ATTACHMENT A CITY OF FARMINGTON, MN ANNUAL BUDGET 2000 EDA OPERATIONS FUND FUND SUMMARY REVENUES 4404 Federal Grant 33,225 10,480 4516 Administration fees 4955 Interest 1,023 2,700 2,700 2,700 2,700 4975 Rental Income 12,717 10,559 13,761 13,761 13,761 13,761 5010 Sales of property 17,933 121,000 5355 Donations 5350 Miscellaneous 18775 2,815 2,625 2,625 Total Revenue 64717 42,810 19,086 140,086 16.461 16,461 EXPENDITURES 6100 Personal services 6200 Supplies 571 6400 Other services & charges 102,198 76,499 19,086 19,086 3,220 3,220 6900 Capital outlay Total Expenditures 102,769 76,499 19,086 19,086 3,220 3,220 Transfers in (out): 7310 General fund 175,000 175,000 7310 HRA (533,732) 7310 Storm Sewer Trunk (33,500) (33,500) (33,500) (33,500) Total transfers 141,500 141,500 Net Change in Fund balance (38,052) (567,421 ) 154,741 154,741 Fund Balance beginning of year 363,232 325,180 Fund Balance end of year 325,180 109 ATTACHMENT B CITY OF FARMINGTON, MN ANNUAL BUDGET 2000 EDA OPERATIONS FUND FUND SUMMARY $ $ $ $ $ $ REVENUES 4404 Federal Grant 33,225 10,480 4516 Administration fees 4955 Interest 1,023 2,700 1,934 2,700 2,284 4975 Rental Income 12,717 10,559 13,761 2,676 13,761 5010 Sales of property 17,933 123,902 5355 Donations 5350 Miscellaneous 18,775 2,815 2,625 3,660 2,495 Total Revenue 64717 42810 19,086 132,172 16,461 4,779 EXPENDITURES 6100 Personal selVices 6200 Supplies 571 6400 Other selVices & charges 102,198 76,499 19,086 46,743 3,200 5,695 6900 Capital outlay Total Expenditures 102,769 76,499 19,086 46,743 3,200 5,695 Transfers in (out): 7310 General fund 175,000 175,000 7310 HRA (533,732) 7310 Storm Sewer Trunk (33,500) (33,500) (33,500) (33,500) Total transfers 141,500 141,500 Net Change in Fund balance (38,052) (567,421) (33,500) 85,429 188,261 174,084 Fund Balance beginning of year 363,232 Fund Balance end of year 325,180 7CL- Major Economic Development Activities September & October 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 Man Bar & Grill (interior remodel) Dodge Middle School- interior remodel This Little Piggy (interior renovation) Rising Stars Daycare NKA Magnificent Me (interior build out) ACE Hardware (interior remodel)* Kwik Trip (addition/remodel)* CDA Twin Ponds Phase II (new construction)* Trinity - Memory Care Group Home (new construction)* *Permits issued recently. 2011 Commercial Certificate of Occupancy's Issued Pizza Hut (build out) Savers Choice Market (Econo) (interior remodel) 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 132 new residential permits have been issued as of September 30 (66 CDA Senior Apt, 26 Twin Ponds Phase II, and 40 single-family homes). There are 13 new residential permits pending. NEW BUSINESS . Town and Country Granite (21170 Eaton Avenue) . Eternity Homes (425 3rd Street) . Shidor plans to open a Christmas Boutique with gently used holiday items at 420 Elm Street beginning in November. This location will be open through the holidays only. UPDATES CDBG Residential Rehabilitation Program Update The Dakota County CDA informed me that the Federal Department of Housing and Urban Development (HUD) had completed a desktop monitoring of all existing CDBG activities. One of their findings was the TEH Page 1 10/20/2011 identification of old funding for activities that had been completed or inactive for a number of years. One of the older activities identified was the Riste Building Acquisition and Clearance activity, with a remaining balance of $12,433.96. I have been informed that this activity has been closed, and the balance transferred to Farmington's Residential Rehab account. The transferred funding will cover three residential rehab loans that were recently issued to Farmington homeowners. In an effort to monitor the number of and amount of loans issued yearly to Farmington residents, I've requested a report identifying this information. My hope was that this information would be received in time for inclusion in the October EDA agenda packet, but that did not occur. I will forward this information once it is received. The updated CDBG Status Report is attached. Immanuel Dental Construction Update Construction ofthe new dental facility is over 50% complete and the second disbursement of TIF has been provided to Dr. Dungy. Website updates include: · Updated CDBG Program and Application information · Available Properties List · Development Contacts List RIBBON CUTTINGS Kyo Yook Do Martial Arts (328 3rd Street) A Grand Opening and ribbon cutting ceremony were held on Friday, October 14. Owners, Lynn Jenkins, Chad Anderson, Christopher Matek, Dale Cummings, and Roger Wells opened Kyo Yook Do earlier this year. after USA Tae Kwon Do closed unexpectedly. To date, they have 19 students registered some of which have already competed in a national Tae Kwon Do tournament. Pizza Hut · 19645 Pilot Knob Road · 651-460-8880 Boarder Foods Companies ~pened its latest restaurant in Farmington. The company is a locally owned franchisee of Taco Bell, ~izza Hut, WingStreet, Au Bon Pain and Sonic Drive-In restaurants currently owning over 160 locations throughout Minnesota, Iowa, Wisconsin and Wyoming. , . "The'new Farmiilgtoh Pizza Hut is the second Minnesota location with a new brand design," said Fred Burmer, Vice~ Pres.ident qf Operations at Boa~d'er Foods companies. "We're thrilled to open our doors and start serving TEH Page 2 10/20/2011 the Farmington community all of their favorites from Pizza Hut and WingStreet." Farmington's Pizza Hut is a carry-out and delivery restaurant. For more information, visit www.cravingstogo.com. ~ L::l w~ ~ The Vice President of Boarder Foods Companies, Fred Burner cut the ribbon on September 2, to mark the opening of the new Farmington location. AWARDS Aerospace Fabrication · (5147 208th Street West) Aerospace Fabrication & Materials, LLC in Farmington was among seven businesses in Dakota County recognized for their achievements at the Business Excellence Awards by the Dakota County Regional (OCR) Chamber of Commerce on September 22,2011. This years' theme was Job Creators, Today's Hero's. In December 2005, Aerospace Fabrication opened its state-of-the-art manufacturing facility in Farmington's Industrial Park. Currently, Aerospace employs 94. 1 TEH Page 3 10/20/20 II en w o z :5 <c..- IDC; ON Z>- ::Ju. u.u. I ..- I .... I (]) ~ffi O:J a.. 0 w a::: en ::J I- <C I- en e>:: IDc. o (]) Oen ZQ OM l- e> Z :i a::: <C u. *' ~ ~ ~ ~ *' 0 0 0 0 - C'! .q- 0 N C'! 0 c ('f) r....: 0> oci N c:i Ql .q- N ..- 0 l:! ~ Ql a.. 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(]) 0:: (]) Ul Q) e> >< 0:: > (]) U 'C >. 0 W ~ ro 0 '2: 0. >. ::J .... I- 'u Ul (]) (]) e ID Z C .... - (]) Ul (J) c: ..J ..J W (]) E (]) ,!:2 (]) <C <C 0 '0 c: 0 '00 E '00 :c .... l- I- a::: u (]) 0 :J :J ~ 0 0 w 0:: () ID 0.. l- I- a.. c 0 +=> III .... 1i5 'c 'E '0 III t) (]) 'e- o. (]) '0 :J U ,5 >. III E Ul (]) U c: III 0 ro en .0 ~ '0 c: :J '+- (]) .s:::. I- ~ o Z o +: Cll a::: c ~ o 'C 'C C Ql 0. en ~ ~ o N >- U. 4A Odober 6, 2011 DAKOTA COUNlY TRIBUNE BUSINESS WEEKLY ~ Forum I 96 Commentary and opinion regarding issues in the world of business and public policy The blame game clouds property tax picture by Phil KrinI:ie SPECIAL TOTHETRIBUNE We all know this game and most of us have played it from time to time. If we mess up or do something we shouldn't we quickly pin the cause of our actions on someone else. This is a response most of us learned early in life; if something goes wrong, find someone or something to blame. The most common excuses are well known and repeated often: The dog did it, you didn't remind me, it wasn't my fault. Sometimes we might even blurt out one of these lines before we are accused, for fear that we might be guilty of some yet to be identified infraction. In the world of politics the "blame game" has been developed into an art fonn, one side always accusing the other side of some act that has caused hardship for thousands, maybe even hundreds of thousands. The most recent political episode of the "blame game" that has played out at the capitol is over property taxes. Every fall as the leaves in Minnesota turn bright colors and so do the faces of many local elected officials as they struggle to explain their vote for higher property tax lev- ies. This annual fall performanee of the "blame game. has been played out in our state for decades. The reason for this contest is quiet simple; state legislators want to claim Guest Columnist Phil Krinkii increase in homeowner property taxes by having all types of property share the burden of providing the tax relief to ho- meowners. Effectively, the cost of the formerly state paid credit is now shifted relatively evenly among all property taxes (including homesteads). No matter what you call it or how you redistribute state tax dollars to local gov- ernments; property tax relief programs re- duee tax transparency and accountability for local government spending. At this point you should rcaIize that neither side wins in the "blame game" and the taxpayer always loses. If you are coneerned about how much you pay in property taxes; get a copy of your city and county budget to examine how your tax dollars are being spent. Your local elected officials decide how and where to spend your tax dollars no matter how much or how little is doled out by the state. State property tax relief is just like pain medi- cation; onee the relief wears off the pain continues. Any state property tax aids to local governments is not tax relief, it's just a tax shift. The state uses your income and sales tax dollars to buy down your property taxes. It's not relief, it's just a shift of the tax burden with the state picking winners and losers. Instead of playing the "blame game," legislators should focus on elimi- nating all property tax relief programs for Branding helps cities attract, retain businesses bv Don Hein%man nAl<:oTA COUNTY TRIBUNE Communities are trying to promote their unique qualities through what's be- come known as "bmnding." The bmnding is meant to attract atten- tion of businesses looking for a plaee to locate, thus increasing the tax base of the community. Suburbs often are characterized as "'burbs. with little identity and lumped in as bedroom communities. Hoping for more identity, some cities like BurnsvilIe and Maple Grove, have built downtowns. Community eelebmtions, such as Bm- ham's Homemade Pie Day, !santi's Rodeo Days and the Anoka's Halloween obser- vanee help establish identity. There are many other well known bmnds including Caledonia as the "WUd Turkey Capital,. Anoka as the "Hal_ loween Capital," St. Paul as the "Capi- tol City," Minneapolis as "The City of Lakes," Little Falls as the city "Where the Mississippi Pauses, Discovery Begins.. LakevilIe prides itself as the "Southern Gateway to the Twins Cities," Apple Val- ley as "Plant, Grow, Prosper," Cambridge as "Minnesota's Opportunity Commu- nity,. and !santi as "A Community for Generations." Forest Lake, thanks to its Ameri- can Legion Post, has billed itself as the credit for holding down property tax mtes. Therefore they transfer billions of state dollars to city and county governments to hold down property tax mtes. In turn local governments lobby for more money from the state to enable them to keep property tax mtes down while continuing to grow local government spending. If cities and counties don't reeeive more aid or if there is a teduction in property tax subsidies funded from the state; they quickly blame state legislators for property tax increases. This fall the property tax "blame game" has heated up more than usual because of a change made this year in property tax relief legislation. Under this change the current Market Value Homestead Credit program was replaced with a new Home- stead Market Value Exclusion program. The HMVE provides for a portion of each home's market value to be excluded from its value for property tax calcularions. The amount of value excluded is directly proportional to the amount of credit the home reeeived under the old MVHC. The new system allows for the eUmi- nation of MVHC without a significant Tribune Columnist Don Heinz'lTUln city's website, noting that 85 percent of businesses looking to locate or relocate look at the Internet sites. Forest Lake, backed by a similar study with its EDA, is in the midst of a like pro- cess that will produce a new "bmnd" for the Washington County community. Some quesrion the need for bmnding particularly in a natural region like north- ern Dakota County where people live in one close-by city, work in another and worship in another. They say that it's bet- ter to forget competing for industries with neighboring cities and be satisfied to lo- cate in the region a business that will pro- vide employment no matter where people live. Steve Chandler told the Elk River EDA that a community's reputation is "defined by its government, its businesses, its organizations and its residents - or, it will be defined by others." Having a systematic approach to spreading the right message to targeted audiences is one way to attract and keep businesses and build community. Don Heinzman is chairman of the ECM Publishers 1m. Editoritzl Board. Thisweek Ne'Wspapers and the DaluJta Csrmty Trilnme are part of ECM. He is at dDn. heinzman@ean-inc.cDln. Cs/umns reflect the opinion of the author. Submissions to Forum: www.DakotaCountyTribune.biz four reasons. 1) Property tax relief programs only confuse property owners and cloud what cities and counties really spend. 2) If residents want or demand more local services they should pay the full cost of the services and not expect state tax- payers to bear a portion of the bill. 3) Local services such as fire, police, snow removal and street repair should not be based on the value of a home, but on the value of the service. 4) Ending the shell game of property tax relief programs will prevent legislators from trying to curry favor from taxpayers. The state consritution reads "taxes shall be uniform upon the same class subjects. therefore legislators should en- deavor to provide a simple and uniform system of property taxes; not a convoluted rubric of aids that serve only to confuse and confound the average property owner. It's time to retire the "blame game" and provide property owners with tax trans- parency. Phil KrinI:ie is a former Repuh&an._ representative from LillD LaIw and the presitlentofthe Tupayers League ofMin- nesota. The eight-term lawmaker chaired the House Tao: Csmmittee and t'1JIo other House panels. Krinkid .-mail is at: phi/k@ tmtpayersleague.org. ~~~I!Jbune (lISPS 147240) PuhJkh"............................. JulIon And=n _......................... M.... Wlnkdman General MllIUlger. Editor ...... Lany Werner Managing Editors ...................TadJohnson .................................................John Geamer Sol<. M....... ........................Mn.. Jotcbkk Prodw:tionIOffia:: Manager ....EDc:n Rdc:rson BU2Z aubmiaions.._~ean-inc.com Business Brldil....M~ccm-inc.aun SrmyUku ._.......l>Od.johnom@<enHno.am Lerr<n..__.._.l>Od.johnom@=Hncmm Ad-.mg ....._.__ ""-<Id@<enHno.am EtltereJuperioJlcalmll1tCtdthllposfoft1ceat BumsviJIe, Mlm1eaou. PerioJlaW pomge pa1J at BumniIle.MInDC&OtI. IuueJ weekly (rom lUl. office h>B_ Oflkc H01Ull: 9 a.m.; ~~~'3~~~;J;ursday ECM ~ "Fourth ofJuly Capital of Minnesota" for nearly 90 years. Elk River, which is known as "Energy City," has an Economic Development Authority that hired a consultant to de- velop a bmnding program. Through research, the company, Chan- dler Thinks, found only 13 percent out- side the city knew much about Elk River, except as a city to drive through. On the other hand, they found satis- fied residents who Uked the outdoors where two rivers, the Mississippi and the Elk, come together, the parks, the down- town and the location near the Twin Cit- ies. They came up with the theme: "Elk River - Powered by Nature," but quickly acknowledged the "Energy City" com- ponent and said the theme also could fit "Elk River - Energized by Nature." To its credit, the company had many good suggestions on how the theme could be incorpomted, particularly involving the entire community and its businesses in spreading the Elk River gospel. They stressed the need to improve the 11190 County Road 11 BunuviIIe, MN 55337 952-594-1111 ...952-546-2010 C;c City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us October 10,2011 Roundbank Attn: Jeffrey Rothmeyer 3380 Vermillion River Trail Farmington, MN 55024 RE: State Small Business Credit Initiative Dear Mr. Jeffrey Rothmeyer: The Minnesota Department of Employment and Economic Development (DEED) is expected to launch programs later this fall that support small business funding with the $15.5 million in federal funding it was awarded from President Obama's Small Business Job Act. According to DEED's October 3 Press Release, the funding will provide loan guarantees to lenders making loans to Minnesota small businesses, make money available to lenders for direct loans of up to $150,000 and provide seed money for angel investment funds. Minnesota DEED is currently developing the State Small Business Credit Initiative (SSBCI) which will utilize the received federal funding to spur private-sector lending and improve access to capital for small businesses statewide. Further details can be found on Minnesota DEED's website at www.positivelyminnesota.com (click on "business finance programs") or by contacting Bob Isaacson at 651-259-7458 or Bob.lsaacson@state.mn.us. Sincerely, _ .~ bA/ J::J, I . 1 v Nt5C'tt'v&sl, V\:.i-eV Tina Hansmeier Economic Development Specialist Enc. October 3,2011 Press Release: Positively Minnesota Oct. 3 - Small-Business Funding Page 1 of2 lJapartmenlof Emplo:rment and =c.onom[c Oivall;lpment Oct. 3 ", Small",Business Funding .___~_........,..-.............-.--.....~_.,..._~.......___............__",,~~-...................-...................+.....-=-................-~,"_ ."..................~_....................____.._.~____..".,........_...._J-"""-.._~...........~~~~~-.._ For Immediate Release October 3, 2011 Contact: Kim Isenberg, 651-259-7161 Kim.lsenbera@state.mn.us DEED Launching Loan Programs for Small Busine$ses Agency expect$ programs to he~p 1,200 Minnesota businesses ST. PAUL - The Minnesota Department of Employment and Economic Development (DEED) has been awarded $15.5 million in federal funding for programs that will support small-business lending in the state. The funding, from President Obama's Small Business Jobs Act, will provide loan guarantees to lenders making loans to Minnesota small businesses, make money available to lenders for direct loans of up to $150,000 and provide seed money for angel inyestment funds. "This award is great news for Minnesota businesses, which are having difficulties accessing the capital necessary to expand and provide new jobs in our state," said Gov. Mark Dayton. "President Cbama's initiative will mean more jobs for Minnesota." "These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities," said U.S. Treasurer Rosie Rios. ''This program will help ensure that more Main Street entrepreneurs have access to the credit they need to expand their businesses and create new jobs:" DEED Commissioner Mark Phillips said tighter lending restrictions by banks and other financial entities since the recession have made it more difficult for promising businesses to obtain the funding they need to SUlVive the early stages of development. "These programs will put money into the hands of small-business owners and given them an opportunity to grow and create jobs," he said. DEED officials estimate the programs will selVe.1 ,200 small businesses and attract an additional $200 million in private investment. Altogether, the agency anticipates 3,000 new jobs will be created. Because the funding is designed to fuel access to capital, each dollar of DEED's overall financing must leverage $10 of funding by other lenders, although that won't be required for every program. Participating lenders must demonstrate that the DEED program funds are a necessary component of the financing package. Although small businesses across the state are eligible, the department is encouraging business loans to underselVed communities, especially in economically distressed areas of the state. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our selVices, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitler.comlPositivelvMN. Upon request, the information in this news release can be made available in altemative formats by contacting the DEED Communications Office at 651-259-7161. http://www.positivelyminnesota.com/Newsroom/Press _Releases/Most_ Current_Releases/D... 1017/2011 .Oct. 3 - Small-Business Funding Page 2 of2 Minnesota Department of Employment and Economic Development . Communications Office Phone 651/259-7161 or 1-800-657-3858 . TTY 1-800-657-3973 www.PositivelvMinnesota.com An equal opportunity employer and service provider. http://www. positivelyminnesotaocom/N ewsroom/Press _ Releases/Most_ Cunoent_ Releases/O... 10/7/2011 9d City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller, Executive Assistant SUBJECT: 2011 Farmers' Market Summary DATE: October 24, 2011 INTRODUCTION The 2011 Downtown Farmington Farmers' Market season ended on September 15,2011. Staff has surveyed the Farmington Business Association for their thoughts on the Market. DISCUSSION The survey was sent to the Farmington Business Association and eight surveys were returned. The results of the survey are attached. The majority of businesses liked the downtown location and the 14-week timeframe of mid-June to mid-September. While the majority of businesses who responded did not notice a difference with the additional hour added during the season, this was requested by vendors and customers. Regarding the layout, the vendors liked the booths facing the sidewalk better because of being able to park vehicles in the street behind their booths rather than in between to allow for more visibility. This also allows for more space for booths to be placed in the shade. Businesses preferred having the booths facing the street for more community engagement. Businesses who did sponsor the Market would like to see more sponsors next year. It was also noted that all the sponsors were from the north, except for one. Staff will consider more advertising options. Businesses definitely want Business Nights to continue. Staff will continue to look for more vendors to bring more variety to the Market. BUDGET IMPACT For 2011, revenues exceeded expenditures by $232. A budget spreadsheet is attached. ACTION REQUESTED For your information. Respectfully submitted, .~~ ynthia Muller Executive Assistant 2011 Farmers' Market Survey Results The survey was sent to the Farmington Business Association and 8 surveys were returned. 1. Did the location of the Market (on Third Street between Oak and Spruce Streets) help or hinder your business? HelDed 5 Hindered o N/A 3 Comments New location was better. We were busier because of new location. Much more visible and easier to find. Neither - move the Market to the north end of town. Our business is not downtown. Don't know. Definitely increased foot traffic downtown. Definitely helped. Sad it's over. Helped. 2. The Market ran for 14 weeks from June 16 - September 15, and started during Dew Days. Do you have any thoughts on the length or beginning or ending dates? KeeD Current Timeframe 5 Start Earlier 1 Run Later 3 Comments Not an issue. Just the right length - starting during Dew Days was good idea. Dates were good. Run through mid-October for fall produce, It was perfect. During a normal growing season this schedule would work. Would be nice ifit could go longer. Earlier would be appreciated so we'd have more opportunities to purchase berries, and later would also be appreciated. We're all busy and appreciate the opportunities to support our local farmers and growers, especially apples. 3. The hours of the Market were changed during the season from 3:00 - 6:00 p.m. to 3:00 - 7:00 p.m. Did you notice more business traffic with the additional hour? More Business 3 No Difference 5 Comments Market seemed less busy after 6 p.m. No - extra hour allowed us to get there after work. No. Doesn't apply. Don't know. Yes, the extra hour made a difference for people who can't get there until 6 p.m. Yes. Yes, although the hours for business owners are difficult if we are small and there is only one person staffing. We just can't get there if our business hours are 'til 7 or 8 pm for most of us retailers on Thursday. 4. The layout of the Market was changed at the end of the season with vendor's booths facing the sidewalk rather than the street. Do you have any thoughts on the layout? Sidewalk Facine: 1 Street Facine: 4 No Comment 3 Comments None - not aware of the change. Liked them better facing the street so you can walk down the middle and see what vendors on each side had. Also easier to visit with other shoppers. Street facing is good for community engagement - sidewalk facing is better for business exposure. Like street facing. Liked street facing. I think facing the sidewalk flowed better and it gives the vendors the street to set up their things and vehicles. Good idea. Street side with the street still blocked. No comments good or bad. I did hear some customers comment that vendors should not be parking their vehicles in/around their booths as you cannot see past them as you look to see what's further down the row. 5. Sponsorship of the Market was $100 and included: - Business name listed in newspaper ads for 10 weeks in the Farmington Independent and ThisWeek. - Free booth space at two business nights ($40 value) - Listed as a Market sponsor on the City's website. - Listed as a Market sponsor in the vendor newsletter distributed at the Market. - Posted at the Market. Are there any changes you would like to see to the sponsorship? Make Chane:es 3 No Chane:es 2 Comments Get more sponsors. There were no downtown business sponsors. This is a good bargain and we intend to be a sponsor next year. I like it just the way it is. I think it worked well; just need to get more businesses involved. Where does this marketing money go to other than the newspapers? I would say increase the exposure, lower the marketing sponsorship (thereby increase the number of sponsors) and lower the vendors' fees so we get more, viable vendors here on a regular basis. Hold the vendors to an "appearance deposit" so that they're committed to showing up every week until the end. 6. Do you have any suggestions regarding advertising options? Bring the Market to where the people are - at the north side. Put inexpensive magnets with the farmers' market logo, location, dates and hours in with all utility billing envelopes weeks before the market starts so residents know when and where it will be. 7. Would you like Business Nights to continue? Yes No 7 1 Comments Yes - great way to reach out to market goers. Yes - maybe one each month. Not if the Market is downtown. Yes. Absolutely! ! ! Yes! Yes. Indifferent. We cannot close our store to have a booth, don't have the staff at this point, maybe you could have one person/volunteer staff a local booth promoting the local businesses that are open and ready for their business and visit. We could promote with specials just for the Farmers' Market customers and we wouldn't have to staff it, so we could keep our stores open. 8. Is there a particular product or vendor you would like to see offered at the Market? More vendors. I can envision better engagement by local food related businesses. The local supermarket is impacted by the Farmer's Market - why not offer a coupon $1 or $2 off for picking up protein for the night's meal, and the liquor store could offer a coupon for wine that complements a summer meal, and the bakery can suggest dessert. There could be a table saying: Let us help you complete your healthy meal. Just keep looking for more. - - o N 1) 0) 'g :s m 1) .ll: .. 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