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Home My WebLink About12.27.11 EDA Packet AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING December 27, 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 Action Taken 6 Public Hearings 1 Call Meeting to Order 2 Pledge of Allegiance 3 Approve Agenda 4 Citizen Comments / Presentations 5 Consent Agenda a) EDA Minutes: (11/28/11 Regular) (12/5/11 Special) b) Budget Details: November 2011 c) Letter of Credit Release (Immanuel Dental) d) October/November/December 2011 Activity 7 Continued Business a) GROW Farmington Summary 2011 b) Economic Development Strategic Plan 8 New Business a) CDBG Allocation - Program Year 2012 9 City Staff Reports/Discussion/Open Forum 10. Adjourn Sa.,. MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting November 28, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:30 p.m. Members Present: Bartholomay, Donnelly, Fogarty, Larson, May (arrived 6:35 p.m.) Members Absent: None Also Present: David McKnight, City Administrator; Tina Hansmeier, Economic Development Specialist; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROYEAGENDA MOTION by Larson, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA MOTION by Larson, second by Fogarty to approve the Consent Agenda as follows: a) Approved October 24, 2011 EDA Minutes b) Received October Budget Details c) Approved Bills October 22 - November 25,2011 APIF, MOTION CARRIED. 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS a) Pellicci Ace Hardware - Commercial Rehabilitation Grant Agreement Staff presented the Commercial Rehabilitation Grant Agreement between the City and Pellicci Ace Hardware. The EDA reviews the agreement and provides a recommendation to Council. The grant covers a new roof and fire suppression system for the store's new location on TH3. The low bid for the roof was $12,545 and the fire suppression system is $49,700. The grant calls for a 1:1 match. The total amount the City could award is $31,122.50. MOTION by Fogarty, second by Donnelly to recommend awarding a Commercial Rehabilitation Grant to Pellicci Ace Hardware (Farmington Stallions, LLC) for $31,122.50. APIF, MOTION CARRIED. (Member May arrived). EDA Minutes (Regular) November 28,2011 Page 2 8. NEW BUSINESS a) Quality Ingredients Corporation This company is expanding to Farmington and is interested in purchasing a property in the Industrial Park located at 21025 Edmonton Avenue. This is the former PIC building. The company processes chemical food ingredients. During the title search, two documents were found recorded against the property. One is a Development Contract from 1991 and the Industrial Park Addition and 2nd Addition Covenants. QIC requested approval of the following documents: - Release of Land from Development Contract - Estoppel Letter regarding the 1990 covenants - Estoppel Letter regarding the 1996 covenants The Release of Land from Development Contract is between the City and the HRA. All requirements have been met. Staff requested the EDA discuss the intended use and proposed alterations to the property. The covenants are more stringent than the City code requirements. The alterations include raising the roof to a maximum height of 68 ft. as well as installing silos on the southwest comer of the building. The Planning Commission approved the variance for the increased height and outside storage. The loading dock location and screening are pre-existing items that did not meet the covenants and these are remedied through a resolution for EDA approval. Adjacent property owners have been notified regarding the estoppel letter for the 1996 covenants. In order to give neighbors time to respond, a special EDA meeting will be held on December 5, 2011, to consider comments and take action on this item. MOTION by Larson, second by Fogarty to adopt EDA RESOLUTION 11-1 approving the Release of Land from Development Contract and approve the estoppel letter regarding the 1990 Declaration of Covenants. APIF, MOTION CARRIED. 9. CITY STAFF REPORTS a) December 2011 EDA Meeting Date The EDA will hold a special meeting on December 5,2011, to consider comments from adjacent property owners and the QIC estoppel letter regarding the 1996 covenants. The EDA decided they would also like to hold their regular meeting on December 27,2011, to discuss the strategic plan. 10. ADJOURN MOTION by Fogarty, second by Larson to adjourn at 6:46 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant MINUTES ECONOMIC DEVELOPMENT AUTHORITY Special Meeting December 5, 2011 1. CALL TO ORDER The meeting was called to order by Chair Bartholomay at 6:45 p.m. Members Present: Bartholomay, Donnelly, Larson, May Members Absent: Fogarty Also Present: David McKnight, City Administrator; Tina Hansmeier, Economic Development Specialist; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. APPROYEAGENDA MOTION by Larson, second by May to approve the Agenda. APIF, MOTION CARRIED. 4. CITIZEN COMMENTS/PRESENTATIONS 5. CONSENT AGENDA 6. PUBLIC HEARINGS 7. CONTINUED BUSINESS a) Quality Ingredients Corporation: 1996 Estoppel Letter Quality Ingredients Corporation is interested in purchasing the property located at 21025 Edmonton Avenue in the industrial park. They received approval of certain documents needed for the closing. This meeting was to consider the estoppel letter for the 1996 covenants. This letter included a provision that the current and adjacent property owners are notified of the intended use of the property as well as proposed alterations. One comment was received asking about the odor, which will not occur. MOTION by Larson, second by Donnelly to approve the estoppel letter under the 1996 declaration of covenants. APIF, MOTION CARRIED. 8. NEW BUSINESS 9. CITY STAFF REPORTS 10. ADJOURN MOTION by Larson, second by Donnelly to adjourn at 6:49 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant CIty of FarmIng\on Fund 2011 Budaet on 2000 ECONOMIC DEVELOPMENT AUTHORITY Jan Fob Mar Budget SUmmary June 581 Oct $ (262,543) Nov Dee TolaJ BaJarn:e AUI Fund Balance I $ (262,543) $ (262,509) $ (261,412) $ (266,233) $ (265,799) $ (272.647) $ (173.599) $ (162,488) $ (162,884) $ (165.118) $ (165,973) $ (165,880) $ Revenues Intergovernmental Revenue 4404 Federal (CDBG) state other 4460 County MIscellaneous 4516 AdrnInIstralive fees 4950 Inveslmenllnterest 4960 GaInJLoss Invest MKT Value 4975 Rental Income 5010 Sale of Assets 5350 MlsceDaneous Revenue 2,700 13,761 2,625 19,086 2011 Bud TolaJ $ 222 222 1,147 1,147 1,389 Jan Feb Exaendltures 6250 other SuppUes 6401 ProfessIonal ServIces 8,_ 6403 Legal ServIces 5,171 1,615 6421 Municipal ServIces 6422 Electric 628 32 23 6423 NaturaJ Gas 6426 Insurance 996 83 83 6450 OulsIde PrlnUng 6455 Legal Notices PubUcations 6480 Dues & SubscrlplIons I 1,220 6470 TraInIng & 5ubslslance 445 6485 MDeage Reimbursement 200 6492 Adverllslng 6515 BuHdlng Repair ServIce 6550 Developer Payments 6570 ProgrammIng Expense 3,000 7310 OperatIng Transfers 7420 Other ExpendItures TolaJ $ 19,086 I $ 'FundBBi8iIceT ..(262-;-509f . (26f~2f":'~(266~L u (265,~j~ .(272:'~L (1~'5llll1 (1.~~j~~. (162~884) un (165:1~~":'. =(1~~f 8,143 683 $ 1,335 $ 1,721 $ Mar 1.129 2,070 2,308 5,656 218 215 215 213 211 210 208 $ 854 2,993 382 112,010 22 May June July Aug Sept Oct 145 4,000 1,012 3.970 10,827 1.556 1,588 67 53 90 60 26 23 25 28 83 83 83 83 83 83 83 183 25 15 14 21 899 1,099 552 756 204 2.676 11,085 123.902 (123,902) 3,528 (901) . '$ 133.097 $ (114,011) Nov Dee I TolaJ BaJarn:e 6,288 2.360 21,624 (16,453) 67 (67) 26 I 406 222 83 913 83 - 183 (183) 1,220 (1,220) 40 405 35 165 % Received (293) 110.85% 83 44 281 13,145 $ 1,207 $ 2.442 $ 19.44% 134.34% 697.35% % ncIed 72.70% 418.19% 64.65% 91.67% 8.99"A. 17.64% 3,349 (349) 111.83% 2,308 (2,308) ~ 2 (2) 111 $ - $ 36,433 $ (17,347) 190.89% (165,~) (165,~r 1,710 $ Revenue and ExpendIIure Descriptions November Revenues 4950 Investment Interest Interest portIon of VInge loan peyment November ExDendIlures 6422 Electric EDASlgn J:\11NAlEconamIoDevelapI1l8l1llEDA\SudgeI\2ll11 ManII1ly~_2Dll EDA ~SUmmaryJds Saun:e: Finance DepI tell ~ 5c... 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: Immanuel Dental- Letter of Credit Release DATE: December 27, 2011 INTRODUCTIONI DISCUSSION I have reviewed the above referenced project as it relates to the surety. I recommend the Letter of Credit be released in its entirety. The current Letter of Credit for this project (Merchants Bank, National Association Letter of Credit No. 76005281) is in the amount of $30,000.00. ACTION REQUESTED Approve the Letter of Credit Release. Respectfully submitted, Tina Hansmeier Economic Development Specialist cc: file Tom Strid, Engineering Sue Miller, Engineering Linden Dungy, Philippians 4:19, LLC Merchants Bank, National Association 5d Major Economic Development Activities Oct/Nov/December 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 ACE Hardware (interior remodel) Kwik Trip (addition/remodel) CDA Twin Ponds Phase II (new construction) Trinity - Memory Care Group Home (new construction) Blondies - Bar expansion (remodel)* *Permits issued recently. 2011 Commercial Certificate of Occupancy's Issued This Little Piggy (interior renovation) Rising Stars Daycare NKA Magnificent Me (interior build out) 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) In 2010, a total of 8 certificates of occupancy were issued. 2011 Residential Permits A total of 140 new residential permits have been issued as of December 13 (66 CDA Senior Apt, 26 Twin Ponds Phase II, and 48 single-family homes). There are 10 new residential permits pending. In 2010, a total of 95 new residential permits were issued. All residential permits issued were for new single- family homes. BUSINESS NEWS 15 new businesses opened ColJeenies Beanies Daycare Big Sombrero Mexican Restaurant Napa Auto Parts Bernard's Glass Samuelson Surveying Eternity Homes Vintage Marketplace TEH Page] ]2/211201 ] This Little Piggy Catering Structural Restoration Pizza Hut AK Performance Graphics Angel 2 Diva Boutique Town & Country Granite, Kyo Yook Do Martial Arts COW Interrupted, Ice Cream Studio (closed for winter will re-open Apri/1, 2012) 6 Businesses Expanded (and/or began the expansion process this year) Anytime Fitness Immanuel Dental Kwik Trip Magnificent Me Pellicci ACE Hardware Trinity - Memory Care Blondies (20700 Chippendale Avenue) The bar seating and rail area expansion is complete. Children's Choice Learning Center (90 Locust Street) The daycare facility associated with the Federal Aviation Administration has changed from New Horizon to Children's Choice Learning Center. Dakota Electric Association (4300 220th Street West) One of Farmington's largest employers, Dakota Electric, was recognized as the Outstanding Philanthropic Organization for 2011 by the Minnesota Chapter of American Fundraising Professionals. They contribute to the community each year through various volunteer programs and donations I Congratulations Dakota Electric for receiving this outstanding award. Immanuel Dental (321 3rd Street) Construction of Dr. Dungy's expanded dental facility is nearing completion.. A final inspection is scheduled for the afternoon of December 21. Once a certificate of occupancy is been issued Dr. Dungy will begin moving into his new building. His plans are to be open and see patients in his new building Thursday, December 29. A grand opening/ ribbon cutting is planned for spring. Magnificent Me (19645 Pilot Knob Road) The newly expanded daycare center opened in November at its new location in the Charleswood Marketplace commercial center. Self Serve Car Wash (88th Street) Improvements are being made to the self-serve car wash located on Highway 3 (north of dairy queen). Once the work on the new touch free automatic bay is complete, the owner Eric Barke, will schedule a ribbon cutting to showcase the latest improvements. TEH Page 2 12/2]/201 j RIBBON CUTTINGS Angel 2 Diva (308 Oak Street) A Grand Opening and ribbon cutting ceremony was held Wednesday, November 2. Items offered at the boutique include clothing, accessories, home decor and more. Pam will soon be WEBSITE UPDATES · Business Guide · EDA page · Major Employers section UPCOMING January 26 Chamber Brew HaHa Farmington Library (508 3rd Street) 8:00 - 9:00am The Farmington Brew HaHa is an hour long networking event hosted at member business locations. This will give member businesses an opportunity to showcase their businesses to fellow chamber members. January 28 - Community Expo Farmington High School 9:00am - Noon The EXPO gives the opportunity for organizations and businesses to promote themselves to hundreds of local residents. The event drew over 2,500 people last year and is a great place for businesses to showcase what they have to offer. TEH Page 3 12/21/2011 7a.- City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Lee Smick, City Planner AICP, CNU-A SUBJECT: GROW Farmington Summary - 2011 DATE: December 27,2011 INTRODUCTIONIDISCUSSION On December 8, 2010, GROW Farmington was launched with over 80 people brainstorming the future of business in Farmington with responses as attached in Ex. A. GROW Farmington's premise is to assist existing businesses to prosper while discussing Farmington's business future. In total, there were 8 meetings held over the spring, summer and early fall of 2011, with much success. At a meeting held on February 9, 2011 at City Hall, there were approximately 30 people in attendance to determine the TOP 3 ideas to work on that were generated from the original TOP 10 ideas (Ex. B). . The TOP 3 ideas included Promote Farmington, Brand Farmington, and Unite Farmington. Promote Farmington includes the combination of promoting Farmington's unique nature including its trails, trout streams, and green open space along with creating and promoting community events. Ideas generated under Promote Farmington include communicating the location of public access for trout fishing along the Vermillion River and its tributaries and making sure we publicize the community events in existing publications not just in Farmington, but in surrounding communities and north of the river. Brand Farmington included these ideas: Think of the brand as a business - tie in with the area - determine who we are and keep the message consistent. And fmally, Unite Farmington included the need to bring together the northern part of the community with the southern part of the community. Ideas included businesses in the north need to promote businesses in the south and vice versa, Music in the Park should be moved around to north and south sides of town, and provide common visual elements, (banners, flowers, light poles, wayfmding signs, Highway 3 renovation, etc.). From these ideas, action steps were planned to accomplish reachable goals. The attached matrix (Ex. C) shows the status of the projects as Completed, Pending, Ongoing, and Proposed. Ideas that were accomplished included the following action steps: . created a shared community calendar (farmingtontoday.com) . held two Spring Clean-up Days (rained out) . created a brand (Farmington Friendly) . provided and installed hanging flower baskets and pots in the downtown and in the northern commercial districts . provided common visual elements to the streetscape (baskets, pots, flags) . provide bike trails to connect north and south Farmington . prepared map for identification of public areas to fish for trout . held Farmer's Market in downtown to attract potential shoppers and promote community . reduced roadblocks for new businesses by utilizing Commercial Development Review Process On September 26, 2011, the City Council met with the Dakota Regional Chamber and the Farmington Business Association to discuss the future of GROW Farmington. From that meeting, a Steering Committee was formed consisting of two school representatives (Superintendent, School Board Member), two city representatives (Council Member, City Administrator), Clyde Rath - FBA, and Ruthe Batulis - DRC. Future meetings of GROW Farmington will be scheduled as the Steering Committee meets. In all, staff feels the GROW Farmington initiative was well received and a number of projects were completed. Throughout the initiative, the completeness of projects showed the determination of the Farmington Business Association, City Council, and City staff and the importance to grow Farmington. ACTION REOillRED Review the tasks completed and the attached action steps and make comments. Provide direction on the work plan template if proposed. Re.spectfu.. lly}ubmi~ ~~ ~cr ~ity Planner AICP, CNU-A G.A- evl FGROW,~ arm ng!QIJ EDA / Farmington Business Association / Chamber Brainstorming Event December 8,2010 1. Park and Rec with Community Ed with paid advertising from businesses Community Guide - Program Guide 2. Bakery and jewelry store - cross market 3. Communi streamin billboard downtown 4. Slogan "Come On Out to the Farm" Ci Newsletter, School District, News a er Po ulation is larger - more otential. Peo Ie are our strength. Location to metro County Fair Farmers Market Old Farmin on - New Farmin on Bike trails and arks a Ius Libr is great 195 Street is a great thin Small town "feeling" 1. Big Box and accommodations for overni t sta s and conferences 2. Play and romote to Farmin on's strengths 3. Global communication to business and residential communities Chi ode downtown Famil restaurant - no Ii uor IHOP, Denny's, Perkins Big box - not Walmart (Target ok) Comm Devtrina/Brainstorming Event 12-8-10 1 Business draw Hotel Tax credits for big box/smaller business Promote what we have (arts, Celts) New resident welcome wagon Signs pointing to downtown (business) Attract industrial participation Attract business that appeals to Farmington's demographic - convenience Social media - Facebook - to communicate to residents E-mail blasts from City "ThisWeek" News - capitalize on something published to all Network each other's businesses NW side oftown has a negative image of Farmington's downtown area Community Calendar - all inclusive of businesses, churches, youth groups, school district, city, senior center, etc. (group would administer their own information on a monthly basis) All inclusive e-mail list to everyone Get the word out at school functions, tournaments, collect e-mails, schools Bigger name businesses to industrial park/V ermillion Crossing Affordable rental apartments - high quality Cable channel - updates in businesses and developments Event map, monthly possibly Radio station Better signage notifying of locations, directions CEEF areas promoted and events Strengthen our B2B relationships and service. People will pay more for same thing if they get exceptional service. Include farmers/ag as recognized business owners Welcome basket We need to be a destination for something. Market trout streams Bring back Home & Garden Show Continue Dew Days - Soybean Festival- Farmer's Market More retail needed - owner operated Restaurant with ambiance and good atmosphere (less sports bar) Draw the population to the North Motel-Motel-Motel with attraction Market bike trails Create competitions between areas to create awareness Pumpkin Chunkin (catapult), pumpkin pie eating contest Winter Fest Give local businesses the chance to supply your needs fIrst! Attract a community college Comrn DevlfinaIBrainstorming Event 12-8-10 2 Trans ortation locall and to metro Vikin stadium in Farmington Market Farmington's close roximi to all metro (eas access - small town charm Apartment housing for youn eo Ie (feeds into school system A11-da kindergarten will draw oung families to town. How to Support Business We Currently Have Promote Farmington events: Planning well ahead and advertise in all papers, press releases, month! event calendars, etc. Star Tribune and all local a ers North and south Farmin on needs to come to ether Study successful "small town" downtowns More downtown decor flowers, lights, signage) uniform matter Outline buildings in lights Quaint a earance and uniform Hi i t small town feel, more downtown decor, uniformi Kee downtown clean: Lot next to Gossi s full of cigarette butts Basic home u kee who's res onsible for enforcing? Place for kids to hang out - skate ark, etc - safe, u to date, ositive, so no gangs develo Comm DevffinaIBrainstorming Event 12-8-10 3 Kee BIG BOX OUT! Home De ot, Walmart, Tar et More effort to build u behind McDonald's More events, INFORM, INVITE, businesses outside of town We all need to su port local! Breakdown of Ideas Business Areas Attract business from other communities Create aths for new business, reduce roadblocks Concentrate on bringing in anchor stores (Walmart or other big box stores) We need uali lod in est Western, AmericInn 2. Bakery and . ewe store - cross market Location to metro Old Farmin on - New Farmin on Libr is eat Small town "feelin " 1. Big Box and accommodations for overnight stays and conferences Chi otle downtown Family restaurant - no li uor mop, Denn Bi box - not Walmart Tar et ok Business draw Hotel Tax credits for big box/smaller business Attract business that a eals to Farmin on's demo a hic - convenience NW side oftown has a negative ima e ofFarmin on's downtown area Strengthen our B2B relationships and service. People will pay more for same thing if they get exce tional service. Include farmers/a as recognized business owners Downtown light oles should be seasonally decorated. Business ersons could s onsor. We need to be a destination for something. More retail needed - owner operated Restaurant with ambiance and good atmos here Draw the 0 ulation to the North Motel-Motel-Motel with attraction Viking stadium in Farmington Defined or anization roles / collaboration Develo Lam erts ro erty rivate) Comm Dev/TinaIBrainstorming Event 12-8-10 4 Industrial Park Encourage brainstormin for new indus Attract industrial artici ation Bigger name businesses to industrial ark/V ermillion Crossing Wh did Airlake take off? What was the ush? Rail S ur? Progressive Rail? Housing IS gone Parks and Recreation trail Events Comm Devlfina/Brainstorming Event 12-8-10 5 Communication Encoura e ositive thinking Newspaper article to encourage citizen input regarding possible new business or industry ideas to Chamber of Commerce 1. Park and Rec with Community Ed with paid advertising from businesses Community Guide - Program Guide 3. Communi streamin billboard downtown 4. Slo an "Come On Out to the Farm" Ci Newsletter, School District, News a er 2. Pia and romote to Farmin on's strengths 3. Global communication to business and residential communities Promote what we have (arts, Celts New resident welcome wagon Signs ointin to downtown usiness Social media - Facebook - to communicate to residents E-mail blasts from Ci "ThisWeek" News - ca italize on something ublished to all Network each other's businesses Community Calendar - all inclusive of businesses, churches, youth groups, school district, city, senior center, etc. grou would administer their own information on a monthly basis) All inclusive e-mail list to eve one Get the word out at school functions, tournaments, collect e-mails, schools Cable channel- u dates in businesses and develo ments Event ma , monthl ossibl Radio station Better si age noti in of locations, directions CEEF areas promoted and events Welcome basket Market trout streams Market bike trails Give local businesses the chance to su I our needs fIrst! Market Farmin on's close roximi to all metro eas access - small town charm Coordinated communi calendar / ublici communications Focus on positives or at least be "neutral" Action items - momentum et and kee the ball rollin Business / communi center district si a e Common web site / calendar coordination What makes Farmington a destination? Positive P.R. / first im ressions Ca italize on "Name" Farmington S okes erson for Farmin on events? P.R. Technolo availabili ma / fIber 0 tic Wireless tower / signal stren Promote uni ue nature of Farmington and surrounding area Comm DevfTina/Brainstorming Event 12-8-10 6 School District oung families to town. 195m Street is a great thing Transportation locally and to metro Comm DevfTina/Brainstorming Event 12-8-10 Transportation 7 fix'D GRO arm n ton GET INVOLVED TOP 10 1. Promote Farmington's unique nature - Trout Stream, bike trails, green space 2. Create and Promote Events - Dew Days, Farmer's Market, Soybean Festival 3. I<eep Farmington Beautiful - Flowers, light poles, signage, cleanliness 4. Promote Farmington - Newspaper, newsletters, calendar 5. Brand Farmington - Small town feel and charm, quaintness 6. Business Retention - Strengthen existing business relationships 7. Business Recruitment - Attract big box 8. Business Recruitment - Attract motel, hotel 9. Bring Farmington together - North and south 1 O.Promote Farmington - Strengths and its people TOP 3 1. Promote Farmington 2. Brand Farmington 3. Unite Farmington M,0 Action Status Responsible Party Dates 1&2 Promote Farmington Marketing Focus on local residents to encourage shopping locally. Proposed Grow Farmington Members 2012 Events Insert events on consolidated calendar. Completed Grow Farmington Members Apr-11 Create a list of groups to gather database. Proposed Grow Farminqton Members 2012 Prepare and coordinate a bike ride event. Proposed Grow Farminqton Members 2012 Image Clean-up Day Event Completed Grow Farmington Members 4-30-11, 5-14-11 Install flower baskets in Farmington. Completed Grow Farmington Members May-11 5 Brand Farmington I I I (1) Promote hometown feel. I Pending I FBA I Dee 3rd (2) Brand elaborating mom and pop businesses. I . Ongoing I Grow Farmington Members I Ongoing (3) Create focus groups with public and businesses. I Ongoing I Grow Farmington Members I Ongoing (4) Think of brand as a business - tie in with the area - keep it consistent. I Created Brand I Grow Farmington Members I Ongoing (5) City employees business cards, sign age and events all the same. I Proposed I Grow Farmington Members I 2012 (6) Be careful not to go too ruraljsmall"Mayberry". I Proposed I Grow Farmington Members I 2102 (7) "Find it in Farmington". I Created Brand I Grow Farmington Members I June-Aug 2011 . (8) Brands "Fresh air, farms and families", "Trout, trees and trails", "Barns, benches". I Created Brand I Grow Farmington Members I June-Aug 2011 (9) Determine who we are. I Created Brand I Grow Farmington Members I June-Aug 2011 (10) Branding is a city led effort. I Created Brand I Grow Farmington Members I June-Aug 2011 (11) Small town and show that we are "open" for business. I Created Brand I Grow Farmington Members I June-Aug 2011 (12) Redevelop with specialty shops, mom/pop stores, I Proposed I Grow Farmington Members I 2012 (13) Brand a "logo" and use it everywhere. I Proposed I Grow Farmington Members I 2012 I I I Action Status Responsible Party Dates 9 Unite North and South Farmington (1) Provide trails to connect both areas. Ongoing Farmington Parks and Recreation Ongoing (2) Businesses in north need to promote businesses in south and vice versa. Proposed Farmington staff, FBA 2012 (3) Promote the "north and south is getting together". Proposed Farmington staff, FBA 2012 (4) Provide map with Farmington businesses listed and pin-pointed by category showing recreational facilities, public offices, farigrounds, trails. Link to map should be on all businesses web Proposed Farmington staff, FBA 2012 sites. (5) FBA should have facebook page for online socializing - Include Facebook icon on all Proposed Farmington staff, FBA 2012 publications and web pages. (6) Social events should be held in both north and south. Proposed Farmington staff, FBA 2012 (7) Hold some events on north side of town. Proposed Farmington staff, FBA 2012 (8) Music in the Park should be moved around to north and south sides oftown. Proposed Farmington Parks, FBA 2012 (9) Provide new Resident Packet on events, businesses, churches, city and school. Proposed Farmington staff, FBA 2012 (10) Ask North Farmington residents what types of things would draw them to events in Proposed Farmington staff, FBA 2012 Farmington. (11) North Farmington businesses should talk about south businesses and vice versa. Proposed Farmington staff, FBA 2012 (12) Utilize senior citizens and get them involved. Proposed Farmington staff, FBA 2012 (13) Campaign for "Farmington First" for local shopping. Proposed Farmington staff, FBA 2012 (14) Coordinate timing of Dew Days event to keep people in town longer. Proposed Farmington staff, FBA 2012 (15) Provide common visual elements, (banners, flowers, light pol~s, wayfinding sig~s, Highway 3 Complet~d, Yearly Farmington staff, FBA 2012 renovation, etc.). . . (16) Provide digital signs throughout Farmington to promote events in north and south. Proposed Farmington staff, FBA 2012 (17) Allow blade signs in north and south. Proposed Farmington staff, FBA 2012 (18) Provide a cohesive and fun leadership between north and south. Proposed Farmington staff, FBA 2012 76 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: EDA Members FROM: Lee Smick, City Planner AICP, CNU-A SUBJECT: Economic Development Strategic Plan DATE: December 27,2011 INTRODUCTIONIDISCUSSION The Strategic Planning process started in early 2010. In August of 2011, staff prepared and presented an outline of the Economic Development Strategic Plan. The plan is attached for review. City staff is requesting that the Council address and give direction to staff concerning the following items: 1. Determine if Section 1 of the plan (Organizing for Success - see Ex. A) should be addressed fIrst before any other Sections (Section 2 - Promoting, Section 3 - Maintaining, and Section 4 - Recruiting) are proposed. 2. Determine if one section will be completed before working on another section or begin sections simultaneously. 3. Determine which action steps should be launched within Section 1,2,3, or 4. 4. Determine if action steps are feasible or worthy and if other ideas may be added. The next step is to hold a strategic planning facilitation session at the EDA meeting on January 23, 2012 concerning the above-mentioned items. This facilitation session will provide the following benefIts: . The facilitation session will name action steps and determine which priorities staff should work on in the coming months. . The facilitation session will also give the EDA an opportunity to comment on the proposed timeline and budget template as shown in the sample below: 1. 1 Organizing for Success: Farmington's Economic Development Strategy Action 1.1.1: Develop a path and philosophy for Economic Development in Farmington Implementation Steps: (a) Review the existing Mission Statement. Responsibility: EDAI staff Timeline: February 2012 Budget: (b) Review the existing Vision to build consensus for Economic Success Responsibility: EDA, staff Timeline: February 2012 Budget: (c) Review SWOT analysis for 2011 Strategic Plan. Responsibility: EDAI staff Timeline: March 2012 Budget: (d) Develop a policy for a IIbusiness friendly' approach to economic development. Responsibility: EDA, staff Timeline: April 2012 Budget: . Remove barriers to conducting business within the city. Responsibility: EDA, staff Timeline: March 2012 Budget: . Improve the regulatory environment for businesses by ensuring that development review process and other policies are streamlinedl transparentl and consistent. Responsibility: EDA, staff Timeline: May 2012 Budget: (e) Review City status/progress on economic development priorities on a quarterly basis. Responsibility: EDAI staff Timeline: April 2012 Budget: (f) Update overall Strategic Plan every 3 years and continue to seek buy in from key local economic development players. Responsibility: EDAI staff Timeline: July 2014 Budget: 1.2 Organizing for Success: Roles and Responsibilities Action 1.2.1: Create a 7-member Economic Development Board of Commissioners (EDA). Implementation Steps: (a) Develop steps to implement a 7-member Economic Development Board of Commissioners (EDA). Responsibility: EDAI staff Timeline: March 2012 Budget: (b) Develop a transition plan from the City Council to the 7-member board. Responsibility: EDA, staff Timeline: June 2012 Budget: (c) Compile list of past interested residents to serve on Board. Responsibility: EDA, staff Timeline: June 2012 Budget: (d) Determine duties and responsibilities of EDA. Responsibility: EDA, staff Timeline: February 2012 Budget: (e) Prepare organizational and procedures manual. Responsibility: EDA, staff Timeline: March 2012 Budget: ACTION REOUlRED Review the priorities, strategies, and associated action steps as shown in items 1-4 above and make comments. Provide direction on the timeline and budget template. ~~ Lee Smick, City Planner AICP, CNU-A tx. A STRATEGIC ECONOMIC DEVELOPMENT PLAN 2011-2014 CITY OF FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Introduction The key to successful communities is their heart and soul-the unique cultures, landscapes, traditions and values that people cherish-and with people themselves taking action to enhance and sustain the places they love. Many communities are ready to protect their unique character, deeply engage their citizens, and meet the challenges ofthe 21st Century. Economic Development is one ofthose challenges and citizens can assist with it by shopping locally and creating awareness to other citizens about the businesses within the City. The Role of the Economic Development Strategy It is not possible, with a single definition, to capture all the facets of economic development. It is usually described either in terms of objectives such as employment creation, wealth generation and the improvement of quality of life, or as a process that influences growth, competitiveness, sustainability and the overall economic well being of a community. What is most common amongst all definitions is the implied and, in some cases, explicitly recognized, role of government, as it is responsible for creating the environment in which economic development occurs. Because a consensus definition for economic development does not exist, there is no single strategy, policy or program direction for achieving success. The unique mix of geographic, political, economic and social attributes of a community will present a distinctive set of challenges, and requires different solutions, for economic development to be successful. Because this plan is a "living" document, it will change and adapt over time to shifting economic, political and social conditions. Local leaders may decide to adjust various parts of the Strategy, including benchmarks and performance measures, as appropriate. Monitoring the progress of each strategic component will enable decision-makers to determine the effect of policies and programs on overall goals, and identify what elements ofthe Strategy need to be expanded or altered. Why Undertake an Economic Development Strategy? The Economic Development Strategy describes a roadmap for the City and its partners (private, nonprofit, public sector) illustrating how they can work together to enhance employment, investment and quality of life opportunities that benefit the entire community. The strategy is based on the premise that the community can develop visions of what it wants to become, determine the strategies in which it has the best chance of being successful and apply resources to achieve them. If done systematically and over the long-term, Farmington can enhance its economic base while maintaining its core values. For Farmington, there are a number of motivating factors for this Economic Development Strategy. They include: . Establishing the role and direction for the activities ofthe City's Economic Development Authority. 2 . Desire to enhance its reputation as a proactive city that embraces partnerships with local and regional economic and business development organizations. . Welcome new businesses and acknowledge the important contribution of existing businesses to the city's long-term economic sustainability. . Ensure that municipal costs are competitive to other jurisdictions, especially within the industry sectors that are important to the city's economic success. . Provide an environment of "certainty" for businesses by establishing clear, consistent policies for development, regulation, and taxation. . Streamline regulatory and permit processes while balancing community goals. . Provide responsive and flexible customer service at City Hall. . Include economic impact considerations in municipal decision-making. . Acknowledge that communities must compete for investment, human resources and infrastructure. . Present a positive image of Farmington through the media, citizens, and existing businesses. In reality, the City is continuously making decisions that affect economic development. The most obvious ways in which economic development is influenced by local government are through decisions on land use and property taxation, but there are many other ways in which economic development can also be either positively or negatively affected. Examples include the working relationship between local government and the business community, the cost and time required to move through municipal review and approval processes and the effort made to understand and respond to the needs of business. The single most important thing a community can do to support and encourage development is manage and reduce developer/ investor's risk, provide as much certainty as possible about the permitting process, and provide as much clarity as possible about economic development policies. Economic development is about more than attracting companies and investments to a community. These opportunities are part of stimulating growth, but they should not be pursued at the expense of overlooking the needs of the community and existing businesses. In fact, research from numerous sources shows that existing businesses create 60%-90% of all new economic growth in a community. Methodology This Economic Development Strategy presents a plan for Farmington's future, and outlines four priorities that the community will strive for in its economic development efforts. Each priority includes a set of strategies that represent the key strategies to focus on to attain it. Recommended action steps are provided for each strategy. Action steps are the specific items that Farmington will need to implement the strategies, and ultimately achieve the mission and vision of the EDA. For this Strategy to be successful, the progress of implementation must be monitored to keep the work focused on the most pressing issues and completing the action steps in a timely manner. This can be done by regularly collecting and analyzing data pertaining to the benchmarks and performance measures that accompany each goal. The benchmarks and performance measures will allow the EDA to gauge the impact of individual action steps and assess the overall progress of achieving the goals. Benchmarks and performance measures will enable Farmington to track the progress of strategy elements and determine if additional efforts are needed to reach the EDA's priorities. 3 What's in a Strategic Plan? The following flow chart shows how the strategy is laid out to eventually meet the mission of the EDA. The mission is the starting point of the strategy which provides a purpose for the EDA organization. It articulates why you exist as an organization, describes what the organization does in clear terms, describes the purpose ofthe organization, and answers the question IlWhy are you here?" The vision describes the roadmap of the strategy providing a direction for the plan. The vision provides a clear and compelling view of the future and answers the question IlWhere are we headed?" Priorities are overarching issues that the EDA wants to address. The priorities were set in early 2011 which include the Organizational Plan for the EDA. The Marketing, Business Retention and Expansion, and Business Recruitment are the most important issues that need to be addressed in the Strategic Plan as determined by the EDA. Strategies zero in on the priorities and determine how you will achieve those priorities. Action steps guide your daily, weekly, and monthly tasks for accomplishing the strategies. And finally, benchmarks and performance measures holds the organization accountable to meet the mission. Mission .. Benchmarks and Performance Measures . . Vision Action Steps 1. . Priorities ... Strategies 4 Mission A mission statement conveys the purpose of the economic development organization. It helps an organization clearly communicate its purpose and direction. The mission statement was adopted in 2006. Vision A vision allows the planning group to see the community in the future, provides a foundation for all economic development activities, and should be creative but based on reality. Every organization needs a vision of how it will operate. The vision statement determines "where do you want to go?" The vision statement is your inspiration, the framework for all your strategic planning. The City Council, EDA, and key staff participated in several visioning sessions during the summer of 2007. The idea of what the EDA's dreams were for the City, the existing strengths that would result in the achievement ofthose dreams, and the weaknesses that may stand in the way were all key discussion points that assisted with the creation of a vision for the City of Farmington EDA. The vision is intended to guide the work of the EDA. 5 Economic Development Strategic Plan The following pages represent an outline of the priorities, strategies, action steps and performance measurements of the Economic Development Strategic Plan. Directing the strategic plan are 4 priorities that need to be addressed and the 15 strategies to accomplish each of the priorities set forth below. Prioritv #1: ORGANIZATIONAL PLAN Prioritv #2: MARKETING Prioritv #3: BUSINESS RETENTION AND EXPANSION Prioritv #4: BUSINESS RECRUITMENT It is essential that the strategies identified to meet the priorities outlined above, be clear, concise and measurable. In order to provide focus to the priorities outlined below, the following economic development strategies are established. It is staff's intent to continue to provide the EDA with a monthly economic development activities report and to communicate progress on the strategic plan to the EDA on a quarterly basis. Prioritv #1: ORGANIZATIONAL PLAN It is important that organizational components of a strategy are identified. The Economic Development Authority (EDA) has a number of items that need to be addressed at the beginning of the strategic plan before the plan can be implemented. Items to address include: . roles and responsibilities of the EDA and staff, . website configuration, . development review process, and . funding for the EDA such as incentives to new businesses. 1. 1 Organizing for Success: Farmington's Economic Development Strategy Action 1.1.1: Develop a path and philosophy for Economic Development in Farmington Implementation Steps: (a) Review the existing Mission Statement. (b) Review the existing Vision to build consensus for Economic Success. (c) Review SWOT analysis for 2011 Strategic Plan. (d) Develop a policy for a "business friendly" approach to economic development. . Remove barriers to conducting business within the city. . Improve the regulatory environment for businesses by ensuring that development review process and other policies are streamlined, transparent, and consistent. (e) Review City status/progress on economic development priorities on a quarterly basis. (f) Update overall Strategic Plan every 3 years and continue to seek buy in from key local economic development players. 6 1 .2 Organizing for Success: Roles and Responsibilities Action 1.2.1: Create a 7-member Economic Development Board of Commissioners (EDA). Implementation Steps: (a) Develop steps to implement a 7-member Economic Development Board of Commissioners (EDA). (b) Develop a transition plan from the City Council to the 7-member board. (c) Compile list of past interested residents to serve on Board. (d) Determine duties and responsibilities of EDA. (e) Prepare organizational and procedures manual. Action 1.2.2: Create Economic Development Department Organization Chart Implementation Steps: (a) Show all key staff members and clearly state their role, services offered and project responsibilities. (b) Establish consensus on focus and roles regarding Economic Development. (c) Identify desired roles of partners and how they could assist as resources in the plan implementation. (d) Post on website and share internally and externally with key partners. Action 1.2.3: Monitor and Measure Progress on the Economic Development Strategic Plan Implementation Steps: (a) Use the Strategic Plan's implementation matrix to provide annual reports to Council and staff on progress made on key initiatives. (b) Summarize annually outcomes achieved related to the EDA's Economic Development Priorities. (c) Actively promote the results to key partners and the City as a whole. 1 .3 Organizing for Success: External Visibility and Collaboration Action 1.3.1: Promote the Economic Development Strategic Plan Implementation Steps: (a) Make presentations to the community and residents to share the key initiatives and next steps and ask for support as appropriate. (b) Develop press release and distribute to key media for a formal launch ofthe Economic Development Strategic Plan - key initiatives. (c) Post the plan on the Economic Development Department website and update regularly with key accomplishments. 1.4 Organizing for Success: City Council, Boards and Commissions, Media Action 1.4.1: Work to create a positive perception of Farmington. Implementation Steps: 7 (a) Proactively counter detrimental media coverage with a steady stream of positive counter messaging, promotion, and public relations activities. (b) Renew sense of pride in who we are, our aspirations, and way of life through marketing. (c) Turn the tide from negative to positive communication in all aspects of business. (d) Encourage community partners and citizens to actively dispel and counter negative public media communications. (e) Improve the regional perception of Farmington through the GROW Farmington Branding initiative. (f) City Council and Boards and Commissions welcome new business development plans and offer "business friendly" solutions to any development challenges. (g) Support projects and events of the Farmington Business Association (FBA) through the GROW Farmington initiative. . Attend GROW Farmington meetings (h) Develop a clear and consistent message about economic development in Farmington. 1.5 Organizing for Success: Website Action 1.5.1: Strengthen the Economic Development section of website Implementation Steps: (a) Create one direct "Economic Development" link on the City's homepage. . No information on the site should be more than three clicks away from homepage. . Poll key local economic development players to make site user friendly. (b) "Economic Development" home and welcome-pages should articulate the EDA's mission statement and include a condensed list of easily navigable links to the different service offerings ofthe Economic Development Department. The site should also include: . Information specifically pertaining to the identified target industries, including a list of local businesses. . Marketing language/descriptions demonstrating the benefits of business location within Farmington. . Commercial real estate land and building options with maps. . Updated demographic and labor market data. . Easy-to-understand programs for development. . Review partner links to include OCR Chamber, Dakota County, and state economic development organizations. . Include business endorsements, quotes, and testimonials from businesses that have successfully located/expanded in Farmington. . Ensure that URLs and web links for City of Farmington economic development sites are featured prominently in all marketing materials. . Review economic development websites of similar sized communities. 1.6 Organizing for Success: Research Action 1.6.1: Review various publications Implementation Steps: 8 (a) Compile a list of the journals, newspapers, and articles to determine marketing opportunities. (b) Create a database of active retail brokers and developers including names, addresses, contact numbers, etc. - target south metro area. (c) Conduct an analysis of surrounding jurisdictions business fees and taxes. 1.7 Organizing for Success: Development Assistance and Customer Service Action 1.7.1: Continue to strengthen the Development Review Process Implementation Steps: (a) Include the business licensing component of developing a business into the Development Review Process. (b) Continue to evaluate the 3D-Day Development Review Process in the City to look for efficiencies and improvements. (c) Consider formalizing a "development assistance" sponsor for each case. This representative would be the primary point of contact for an applicant, and would help the applicant resolve issues throughout the process. (d) The City will create an updated "Doing Business Guide" to assist businesses with obtaining services, including, for example, when licenses and permits are needed, a timeline describing the process for approval and associated fees. (e) Research electronic plan review implementation. (f) Continue to coordinate with the, State health department to facilitate compliance with regulations that impact businesses. (g) Create an exit survey. 1.8 Organize for Success: Funding and Incentives Action 1.8.1: Determine funding and incentives for Economic Development Implementation Steps: (a) Devise a plan to pay down the negative fund balance. (b) Identify grants, loans and technical assistance to fund economic development initiatives. (c) Develop a revolving loan fund to finance attraction or existing business expansion projects, especially for those in the City's 'new' target industry areas. Priority # 2: MARKETING Marketing is a tool of Economic Development that has two functions, to improve and to promote a community as a viable location for economic activity. The City's image, specifically the logo, the City's web site, content and appearance of City publications and printed materials, coverage in external media, and our presence at local and regional events are all components of Marketing and Branding. Great economic development initiatives involve the entire community working together to improve the local "product" while the EDA works to improve the awareness and perception of the community in the outside world. 9 2.1 Promoting for Success: Marketing and Branding - Managing our Reputation Action 2.1.1: Prepare a marketing plan. Implementation Steps: (a) Work with the GROW Farmington collaborative to create a unified economic development message for Farmington. . Initiate and manage a process for developing a new message. . Determine objectives and standards to develop the marketing plan. e Identify and clearly define strengths, assets, goals, opportunities including the competitive advantages of our community, its amenities, and progress and market it. (b) Define, expand, and formalize communications with the Farmington business community. · Hold quarterly meetings with the business community to learn about any issues or trends. (c) Research what other Cities use and determine how important printed materials are to the marketing efforts. (d) Coordinate with Communications staff to strategically plan message delivery including newsletter, newspapers, website, social media, Channel 16, etc. (e) Continue to attend or plan new efforts through GROW Farmington to promote the City to developers, brokers, retailers, entrepreneurs, etc. (f) Develop programs to enhance and highlight the City's economic development efforts via signage throughout the City. . Explore the use of City street signs to highlight community accomplishments i.e. Playful City, Tree City USA, etc. · Research the feasibility of an electronic sign in downtown and on 19Sth Street to promote and market Farmington and its economic development efforts. · Encourage blade signs perpendicular to the street to capture shoppers. . Design and install wayfinding signage for awareness of citywide attractions that will increase visitor stays in Farmington. (g) Promote Farmington businesses via a "shop local" program. · Educate the public about the economic impact of shopping in town vs. out of town. Run the sample ad in the Farmington Independent: "Ten Reasons to Shop Local." Market benefits of "shop local" awareness to residents. . The program should educate local residents and businesses on the importance of buying from other local businesses. · Encourage increased business-to-business purchasing. . Utilize the City's business directory to market local businesses to the community both inside and outside of Farmington. . Discuss creative ways to improve awareness of local business offerings such as meet merchants campaign, business spot light at Council meetings, anniversary of businesses at Council meetings, Farmington website, videos. . Coordinate the City's overall marketing effort via newsletter; newspapers; website; social media; Channel 16; etc. highlight the "shop local" program. (h) Staff and EDA attends gatherings and conferences pertaining to Economic Development. . Attend gatherings of DEED, EDAM, Dakota County Regional Chamber, etc. 10 (i) Artists' studios and living spaces within the downtown area could be one of the few suitable uses for spaces no longer appropriate for most modern retail. . Encourage the arts in community plans. City leadership should support the existing DVAC. . Periodically convene the current artist organization to identify better ways the City can support their objectives. . Encourage more public displays for local art work (City Hall, empty storefronts, Riste Lot, etc.). . Local designers/artists could be engaged by the City to create artwork for light posts, banners, and publications. (j) Research "shovel ready" initiatives to determine ifthe future industrial park could meet these requirements. . Discuss the City's role in "shovel ready" sites. . Review other "shovel ready" communities in the metro. . Facilitate an open discussion with land owners of the future industrial park to understand their future plans and timeline. (k) Work with regional economic development to assist business prospects coming to Farmington and the region. . Respond to prospect requests in a timely manner. Prioritv #3: BUSINESS RETENTION AND EXPANSION Existing businesses are significant contributors to the local economy and tax base and a healthy and vibrant local economy depends on their well-being. As mentioned earlier research from numerous sources shows that existing businesses create 60%-90% of all new economic growth in a community. Business retention and expansion efforts to support existing businesses should be an integral part ofthe economic development strategy. The priority is to establish and/or maintain a solid working relationship and frequent communication with all existing merchants, service providers and businesses within Farmington. Keeping an existing business is often easier and less costly than recruiting a new business. It's also important to create an environment to encourage the expansion of commerce within the City which in-turn will encourage other existing businesses to expand. It's imperative that we build upon a coordinated effort between the Economic Development Authority and the key Economic Development players to assistant with the retention and expansion of businesses to: . keep them from relocating to other areas, . assist with expansions that add jobs, . increase their competitiveness, and . help them withstand economic difficulties. 3.1 Maintaining for Success: Business Retention and Expansion (BR&E) Action 3.1.1: Create a more formal Business Retention and Expansion Program Implementation Steps: 11 (a) Determine the most effective structure for a formalized business retention program in Farmington. · Review existing Business Outreach Program objectives. · Research model retention programs to find and develop the best materials and tools (.i.e., U of M Extension BR&E). (b) Outline and formalize the BR&E program. · Components to include: process for setting up retention visits, completing the visits, following up with identified issues or concerns, assigning follow-up items to City staff as appropriate, and reporting on the results of each visit. · To develop retention team, solicit volunteers from City Council, Dakota County Regional Chamber, the business community or other groups who would attend visits along with the EDA members and staff · Establish a goal for the number of retention visits the City would like to conduct per year · Set benchmarks for visits per month and continually monitor the number of visits completed relative to the goal. · Prepare schedule of visits. (c) Develop questionnaire(s) to be used in retention visits. . Prepare questionnaire to discuss in BRE visits. · Expand the Business Retention and Expansion program to add more emphasis on questions identifying suppliers and other related firms that could be recruitment candidates. · Consider taking staff to communities with more established Executive call/BRE programs. (d) Organize and hold training for all retention volunteers. . Provide an overview ofthe format ofthe retention visits, including scheduling procedures, attendance, and follow-up. . Review questionnaire and explain why each question is asked. . Anticipate some typical concerns and formulate responses. (e) Create list of businesses to target for retention visits. . Utilize a variety of information to formulate this list such as sales tax generation, number of jobs, targeted geographic areas, rumors of closing or relocating, critical industries, etc. · Communicate regularly with economic development partners to identify at-risk businesses to visit. · Develop Rapid Response Team of Economic Development Partners including City staff, FBA, and DRC to immediately respond to the needs of existing companies who may be expanding or relocating to another community. · Consider the use of a "watch list" for businesses at risk of closing or leaving. (f) Develop list of resources and referrals to use during retention visits. . This list could include City Council, Planning Commission, Dakota County Regional Chamber, internal City staff in Economic Development, Finance, Public Works, Parks and Recreation, and Planning or retention team contact information. (g) Host a business appreciation event once per year and invite all businesses in the City to attend. . Discuss appropriate timing and type of event. . Determine budget for an event of this nature. Identify funding sources, sponsorship opportunities, and programming for a business appreciation event. . Celebrate incremental successes and milestones. (h) Consider developing additional resources or programs that the City could offer to its existing businesses based on the resulting "issues" or "needs" learned during the retention visits. 12 . Possible programs to consider could include providing loans or grants for physical improvements such as facades, sign age, parking lots, interior remodels. (i) Augment the business licensing process to promote economic development programs and obtain information about Farmington businesses. . Refine business license application form to include more questions about related to economic development. . As part of the licensing and renewal process, provide all businesses with information about the City's Economic Development programs. (j) Create an informal business retention program that businesses can regularly meet with elected officials. . Canvas business community to gauge interest/availability for a "Coffee with the Mayor" type of event. o Target business community to attend "Coffee with the Mayor" type events to specifically talk about the business environment in Farmington. Prioritv #4: BUSINESS RECRUITMENT Farmington will continue to grow and reinvent its economy through the attraction of new businesses to the area. This priority addresses efforts that the City will make in bringing additional primary industries, jobs, and other types of services that demonstrate strong economic benefit to Farmington. The principal focus of the City's efforts should be to: . Diversify the tax base. . Create a broad range of employment opportunities. . Provide necessary goods and services for local residents. . Ensure the highest "quality of life" possible. . Promote a positive image ofthe city in general, and its business environment in particular. Accomplishment will require a focused effort on the part of numerous organizations, all working toward this common goal. 4.1 Recruiting for Success: Business Recruiting Action 4.1.1: Business Attraction Implementation Steps: (a) Establish standardized programs that staff can confidently discuss with potential businesses. . Determine if City can/should provide incentives to new businesses. . Develop hardcopy materials that explain available programs and the City's policy on incentives. . Become fluent in understanding how incentives may be leveraged and coupled with the greatest benefit. 13 (b) Develop new relationships and foster existing relationships with brokers who work in Farmington and the metro region. . Make contact with brokers involved with specific properties in the City. . Inform the brokers about the existing incentive programs and the City's perspective on offering incentives. · Research different events to attend or host to highlight both commercial and residential properties (I.e., "brokers forum" for real estate professionals). (c) Continue to maintain and update the real estate database of available properties. . Investigate other marketing opportunities to promote available properties in the City. (d) Identify new networking opportunities that will allow the City to engage with new businesses, developers, entrepreneurs, and real estate brokers. . Attend EDAM and Dakota County Regional Chamber events regularly. (e) Determine targeted retail prospect identification. . Identify and target retailers (both national and local) whose business model is not wholly dependent on foot-traffic. . Canvass local business districts for non-national retailers . Prepare targeted marketing packets for each niche 4.2 Recruiting for Success: Business Recruiting - The Downtown Action 4.2.1: Downtown Business Attraction Implementation Steps: (a) Work with existing businesses to assist the EDA in recruiting complimentary retail (target businesses) to build downtown as a strong destination for shopping. (b) Evaluate which available properties are suitable for varied food and beverage establishments which attract a broader population downtown. (c) Evaluate the benefit of recruiting cultural experiences including studios and galleries to provide activities downtown. (d) Continue to partner with local organizations that provide regular and highly visible events and festivals to attract attention to downtown and bring crowds to it. (e) Recruit the expansion of the professional sector, which will add downtown businesses and will attract people to downtown to shop, dine, and experience the arts. (f) Recruit businesses to serve other downtown businesses. · Build a stronger downtown business community, retaining the cash flow and the profitability of downtown businesses. . As more goods and services needed by downtown businesses are available, the community will be less inclined to travel to neighboring communities. (g) Recruit "destination businesses". . Destination businesses are businesses that are uniquely present in the downtown area and they tend to be focused on "interesting" or "personalized" shopping. 4.3 Recruiting for Success: Office Development Action 4.3.1: Recruit Office Development Implementation Steps: 14 (a) Recruit office (target businesses) to locate them in Spruce Street Commercial and Business/Commercial Flex zones. (b) Explore feasibility of providing assistance with infrastructure in the Spruce Street Commercial and Business/Commercial Flex zones. (c) Define to potential office tenants the key competitive advantages of locating within the Spruce Street Commercial and Business/Commercial Flex zones. (d) Initiate office prospecting through contact with brokers. 4.4 Recruiting for Success: Industrial Property Availability Action 4.4.1: Clearly Identify and Maintain Industrial Job Creation Sites Implementation Steps: (a) Facilitate an open discussion with land owners of the existing and future industrial park area to understand their future plans and timeline. (b) Fully inventory vacant and underdeveloped industrial property to earmark those with the greatest development potential based upon location, infrastructure, access and related factors. . Identify needed infrastructure upgrades/extensions for getting sites 'shovel-ready'. (c) Recruit industry (target businesses) in order to locate them in the proposed industrial park in the future. 4.5 Recruiting for Success: Promote Commercial Development and Revitalization Action 4.5.1: Anticipate New Businesses Implementation Steps: (a) Develop a new business welcome guide which includes pertinent contact information for various departments, agencies and partners; answers to frequently asked questions; and information about City licensing and registration programs. (b) Develop a strategic marketing plan to promote Farmington's available commercial properties and revitalization and redevelopment opportunities. (c) Participate in long-range and sub-area planning efforts to ensure the long-term vitality of the City's existing commercial properties. (d) Compile a list of properties available for commercial development and in-fill in Farmington. (e) Conduct an analysis of surrounding jurisdictions fees and taxes. (f) Explore strategic annexations at the City's edge to enhance potential commercial development opportunities. (g) Evaluate building code regulations to better understand how they may inhibit reinvestment in existing facilities. 15 A Measured Approach to Chasing Development As Farmington considers strategies for economic development, it is important to understand the reality of chasing huge boxes of retail or production space. Economic development programs continually focused on attracting industry as the most effective strategy for job creation have often failed. For many communities, and in particular rural areas, this strategy often "lines the pockets" of the real estate development community while creating less than living wage jobs in big box stores that undermine local retail and service enterprises. In contrast, those communities able to retain retail and service sector local businesses may see profits invested locally and contributed to local causes. The result, according to Rupasingha and Goetz (2003) is that "self-employment is associated with lower poverty rates, while the presence of Big-box retailers is associated with higher poverty rates." Community leaders often assume that incentives offered for relocations will be returned many times over in new tax revenue and support for schools and local infrastructure. The reality, however, is much different. Relocations often create new costs in the future when infrastructure ages, the workforce needs change, or the incentives run out and the operation moves again (Humphrey, 1988; Flora & Flora 2004). An aggressive strategy to "chase" development also requires significant staffing and operating funds to support the necessary travel and public relations costs. Small communities such as Farmington generally do not have the resources to do this. The reality however, is that industrial recruitment, while generating jobs in some communities, accounts for only a small portion of overall new job creation. Indeed, research indicates that this strategy has limited effectiveness for most cities (Kauffman, 2002). ((Grow Your OwnJl as a Strategy The most effective approach may be to adopt an "enterprise development" strategy, which simply means supporting the development of small to medium sized business in the community through a variety of proactive measures. According to Thomas S. Lyons (2002), "Enterprise development is increasingly recognized as a relatively low-cost, 'bottom up' strategy for economic development that is particularly well- suited for a variety of rural and urban communities" (p.l). The following is put forth as a rationale for focusing on a "growing your own" strategy for economic development: 1. The majority of businesses are small or medium sized, and they employ the majority of people in the United States. 2. Entrepreneurial growth companies account for "at least two-thirds of net new jobs in the American economy" (Kauffman, 2002, p. 3). 3. Small businesses incubate innovation leading to new businesses opportunity. They are responsible for more than 50 percent of all innovations, 67 percent of inventions, and 95 percent of all radical innovations (Kauffman, 2002, p. 5). 16 4. We are living in a IInew IEntrepreneurial Agel in which entrepreneurs and their companies are transforming the economic landscape.1I (Kauffman, 2002, p. 4). 5. Entrepreneurs, those focused on innovation and fast growth, comprise 5 to 15 percent of all U.S. businesses (Kauffman, 2002), and there are some in every location. 6. Entrepreneurs and the companies they lead playa critical role in fostering economic prosperity and are vital to our ability to compete internationally. 7. Fast growth companies occupy a variety of business sectors, but they often start at the kitchen table or in the garage with less than $50,000 (Kauffman, 2002, p. 7). 8. Both our defense capability and homeland security require a robust small business sector. 9. Once established, a strong entrepreneurial environment in distressed or remote communities can lead to success in regional relocations of related businesses. If the first element in a proactive approach to entrepreneurship is well-organized and effective business support services, then the second essential element is community leadership. Case studies collected at the Heartland Center indicate that service providers alone cannot make a successful"grow your own" approach. In the Heartland Center study (2003), leaders play key roles in businesses success by: o Creating a compelling lIision; o Communicating the lIision to others; o Delleloping a plan to support business success; o Demonstrating commitment (Wall & Luther, 2003, p. 5). Communities that are successful in growing their own indicate that linearly all of the citizens become cheerleaders to promote the successes of new enterprises. They understand the importance of operation between businesses and all other parts of a total community. Where communities focus on creating their own jobs, leaders build a culture to nurture entrepreneurship in all three arenas: Cillic, social, and business. They also develop a support infrastructure, or system as Lyons described, that addresses the need for services, space, networking, and capitalll (Wall & Luther, 2003, page 5). 17 APPENDIX 18 APPENDIX 1 Economic Development Strategy City of Farmingtonl Minnesota February 2007 Introduction In the summer of 20061 the Farmington City Council and Economic Development Commission hired the International City-County Management Association (ICMA) to develop an economic development strategy and to identify best practices in economic development. The project was undertaken using a IIpeer assistancell approach, with ICMA providing overall project managementl but enlisting the voluntary services of a IIpeer" group of experienced current and former city managers with extensive backgrounds in economic development. The project was initiated in Octoberl 2006 and culminated in a joint meeting of the City Councill Economic Development Authority and key staff on January 22,2007. Project Methodology Responding to the scope of services outlined by the CitYI the project team established the following methodology for the project: I. Peer Assistance Fundamental to the process was the engagement of a team of current and former city managers who had a depth of experience in economic development. The group included: Craig Waldronl City Manager in Oakdalel MN. In addition to his experience in Oakdalel Dr. Waldron has been a Community Development Director and worked for the Department of Economic Development at the State of Minnesota; Mark Nagel, former City Manager in Anokal MN. Mr. Nagell in addition to his experience as a City Manager, has also served as an Executive Director of a County Housing and Redevelopment Authority; Richard Fursmanl former City Manager in a number of communitiesl most recently Maplewoodl MN. In addition to his City Manager experiences, Mr. Fursman also served as an Economic Development Director. II. Assessment of current conditions To establish a baseline and determine the current state of economic development in the City of Farmingtonl the project team conducted an extensive series of interviews. The interviews included all current City Council, EDA membersl key City staff, major business and property ownersl and developers in and around the city. 19 In addtion, the team made an assessment of the current environment based upon their own knowledge of the area and through discussions with industry professionals. III. Review of competitive environment/common practices Understanding the competitive environment was a key component of developing a new economic development strategy. To do this, the project team organized a bus tour of communities that had similar characteristics to Farmington, but had been successful in their economic development efforts. On Saturday, November 18, 2006, the City Council, EDA staff and project team toured the cities of Rosemount, Oakdale, Roseville, New Brighton, Anoka and Elk River. In each city, an overview of issues and project "lessons learned" was presented, including questions and answers for the officials from Farmington. IV. Identification of Internal Capacity Once City officials began to understand the competitive environment and the common practices used by other communities, the project team led City officials on an examination of the City's capacity to respond to the challenges of economic development. On November 27, 2006, the City Council and EDA met in joint session and participated in a facilitated process focused on identifying Farmington's internal strenths and weaknesses, and the external opportunities and threats (SWOT analysis) in connection with acheiving economic development success. A summary of that session is attached as Appendix_. V. Review of Best Practice The City of Farmington requested that the project team provide information on best practice in economic development as an ongoing source of information and guidance. A review and summary of best practice in economic development was prepared, identifying a list of most common elements and approaches used by successful communities, as well as common mistakes made by economic development authorities. In additon, the team provided a separate, but related examination of downtown development practice. Given Farmington's unique circumstance as a outer tier community in the metropolitan area with a distinct downtown, it was determined that a focus on downtown redevelopment practices was merited. The best practice documentation is attached to this report in Appendix _' VI. Facilitated Strategic Planning Process The project team strongly recommended that the City of Farmington generate its own strategic direction and work plan, not merely choose a set of actions based upon the research and interviews conducted by the project team. To that end, a facilitated joint meeting of the City Council, EDA and key staff was held on January 22, 2007. Building on the information generated by the SWOT analysis, interviews and research process, the group identified the six most important strategic issues confronting the City. Once those issues 20 were identified, a series of action steps to address them were developed, and both responsibities for follow-through and initial timetables were set forth. General Findings The project team found that Farmington has a solid foundation from which to build a successful economic development program. The existence of a core downtown area, expanding residential base, good schools and low crime are all assets that will serve the City well and can be leveraged to attract economic development. The primary concerns expressed regarding the future of economic development were: lack of focus and consistency amongst public officials, lack of good industrial land, technical capabilities of economic development staff and the absence of an economic development plan. Nearly all parties connected to this process agreed, however, that the City's effort to undertake this study and commit to a focused strategy was worthwhile. Best Practice Recommendations A detailed review of best practice for both general economic development as well as downtown revitalization is contained in Appendix _' All of the information contained within that document should be carefully considered as implementation ofthe Economic Development Strategy moves forward. Our most specific recommendation is to make sure to link the approach to the circumstances in Farmington. One of the greatest mistakes in economic development is to embark on a program simply because it was successful in another community. There is no substitute for understanding the local economy, and the unique strengths and weaknesses of the community. With that in mind, the project team recommends serious consideration of these best practices: . Establishing a plan and sticking to it (patience) . A Shared Community Vision (part of a strategic plan) o Focused Leadership - all members of the process aligned and committed o Cooperation among the chamber, government, etc. (no turf wars) o Effective governance - consistent, clear processing of development applications and decision-making . A supportive regulatory environment- creating policies and approaches that support private investment . Understanding the regulatory environment- particularly how it affects businesses operating within the city, while also contributing to the physical and social environment. . Clear approach to coordinating land use and economic development- understanding how these relate, and clearly articulating this philosophy to the citizens and development community. . For downtown development, adopt the "Main Street Approach" and its four principles: 21 1 organization of downtown interests, 2 design and historic preservation to enhance the built environment, 3 economic restructuring to diversify the downtown economy, 4 marketing and promotion of the downtown Additional Observations In order to effectively implement the actions identified in the Economic Development Strategy, the city will have to address two key issues addressed in this report (1) staffing, or staff capacity; and (2) cooperation and alignment of policy makers. With respect to the issue of staffing, the project team recommends expanding the City's capacity to analyze and conduct economic development negotiations and finalize "deals".This should be done as soon as practical. This can be accomplished by either contracting for this service, or hiring a qualified economic development professional. As City officials learned during this process, even the most sophisticated cities use economic development consultants. For that reason, the project team suggests initiating the process to engage the services of qualified consultants for that purpose. In addition, serious consideration should be given to hiring a full- time economic development professional. Although no recommendation is being made asto title and internal responsibilities, based upon the City's current needs, a professional with broad oversight of all development activities, with the strongest experience in economic development would seem to be the best course of action. In terms of cooperation and alignment of policy makers, this issue appeared to the project team to be the single issue most likely to affect success or failure of the City's effort. As a result, the team recommends that the City Council, EDA and key staff spend additional time focused on team building, developing a plan for communicating and coordinating effort, roles and responsibilities, and how conflict will be handled. Extra effort in these specific areas will help to strengthen the implementation of this plan. APPENDIX i-A Economic Development Strategy I. Create an Economic Development Framework What are we going to do and how are we going to manage this project Action Steps: 1. Make a decision for managing this process by March/April '07 a. Administrator makes a recommendation to EDA; EDA recommends to City Council by end of February/ next City Council Meeting. 22 b. Have project management in place by April 2nd, 2007 II. Understand Farmington's Market Determining our niche Action Steps: 1. Evaluate relevance of McComb Study for supporting an ED Plan 2. Make recommendation for evaluating industrial and downtown segments a. City Planner to do by February 26, 2007 (next EDA meeting) 3. Identify "downtown" Farmington a. Develop a process to define a downtown district 1. City Planner to do by April 15, 2007 2. Develop marketing plan for market segments of highest interest/capacity based upon market study results III. Coordinate Comprehensive Plan with Economic Development Strategy Action Steps: 1. Administrator and City Planner will create a joint meeting/communication process for coordinated development of Comp Plan and Economic Development Plans. a. Specify purpose b. Identify outcomes IV. Create adequate staffing and technical capacity to support economic development activities Action Steps: 1. Administrator will make a resource/capacity recommendation to the EDA by March '07 with recommendation to go to CC by April '07. Recommendation to include the folloWing factors: a. Technical b. Staffing (hours) c. Training V. Unification of all groups behind the Economic Development Strategy Action Steps: 1. Decide on Economic Growth Committee role a. EDA recommends to City Council in April '07 2. Establish a schedule for CC/EDA/PC to meet and discuss issues and direction by February 8, 2007 a. Include "old" warriors as revered guests 23 3. City Planner will prepare a communication plan/process for community information/updates a. Coordinate w/ comp plan update process b. Public relations and success dissemination VI. Ensure necessary financial resources to support economic development activities Action Steps: 1. Prepare a summary of funding sources for supporting operations and management by February 2007 2. Summarize/create budget to implement planning and evaluation activities by March 2007 3. Recommend a process to analyze funding sources by June 2007 4. Analyze all sources of funds for underwriting development deals by October 2007 The Appendix represents actions that have been completed or in the process of being completed. This information continues to be important to the overall achievements of the EDA but may be outdated. Accomplishments of the strategies outlined in the Economic Development Chapter of the 2030 Comprehensive Plan - 2010 Update: Met Goal Progress No / Ongoing Made Progress Downtown Development and Redevelopment Establish a Clear Downtown Boundary X 0 SWOT Analysis of existing & potential communication links within the community 0 Design and Implement a Public Informational Campaign 0 Joint Meetings 0 Public Meetings 0 Create map to show boundary of Downtown Commercial District Design Standards X 0 Identify primary group to lead creation of design standards 0 Joint Meetings 0 Develop preliminary design standards 0 Review with public and receive input 0 Develop final draft and adopt supporting ordinance Promote Infill Development X 0 Downtown Outreach Program 0 Promotion of infill includes: business activities 24 complimentary to downtown, identifying types of businesses to be targeted and outreach to developers " Parks and Public Spaces: identify opportunities for park and green spaces " Identify Incentives: investigate possible incentive programs/options to develop, research available grant and loan funding " land Assembly Strategy: ongoing attention will be paid to the possibility of land assembly Industrial Development Business Retention Program X " Visits (identify questions and discussion topics for visits, data review, follow-up) Promotion of Available Industrial Property and Buildings X " Inventory [] Identify desired businesses [] Determine if land assembly is appropriate [] Rezone... [] Promo materials... [] Marketing packet for inquiries Advocate with Stakeholders X Enforce Building Standards X Establishment of Incubator buildings and/or inventory of vacant X buildings for start-ups Extend Light-Industrial Areas of the City X Commercial Development Outside of Downtown Area Promotion of Available Commercial Property and Buildings X Build, execute, and maintain a business retention program X 25 History of the EDA's Strategic Planning Efforts The Farmington Housing and Redevelopment Authority transitioned into a seven-member Economic Development Authority in February 2006. Later that year, the Farmington City Council and Economic Development Authority (EDA) hired the International City-County Management Association (ICMA) to develop an economic development strategy and to identify best practices in economic development. The project was undertaken using a IIpeer assistance" approach, with ICMA providing overall project management, but enlisting the voluntary services of a IIpeer" group of experienced current and former city managers with extensive backgrounds in economic development. Responding to the scope of services outlined by the city, the project team established the following methodology for the project: II assessment of current conditions, II review of competitive environment/common practices, a identification of internal capacity, [] review of best practice, II facilitated strategic planning process. The project was initiated in October, 2006 and culminated in a joint meeting of the City Council, EDA and key staff on January 22, 2007. By February 2007, an Economic Development Strategy was developed which included six strategic issues confronting the city. Once those issues were identified, a series of action steps to address them were developed, and responsiblities for follow-through and initial timetables were set forth. See Attachment A for a copy of the Economic Development Strategy developed by the ICMA Peer Team. Parties involved - Consultants: Craig Rapp, Craig Waldron, Mark Nagel, and Richard Fursman, City Council: Kevan Soderberg, Mayor; Councilmember, David Pritzlaff; Councilmember, Steve Wilson, Economic Development Authority: Todd Arey, Chair; Paul Hardt, Vice-Chair; Yvonne Flaherty, Erik Starkman, Chad Collignon, Councilmembers Christy Jo Fogarty, and David McKnight, City Staff: Peter Herlofsky, City Administrator; Lee Smick, City Planner; Tina Hansmeier, Economic Development Specialist; Others: Ruthe Batulis, NDC Chamber; Brooke Walsh, ThisWeek News In June 2007, the City of Farmington hired Community Development Consultants: Richard Fursman and Jim Norman to aid the City Council, EDA, and key staff with the creation of a vision and Economic Development Plan. The following top areas for the concentration of time, energy, and resources were agreed upon by all parties and are specified in order as follows: 1. Downtown Development and Redevelopment 2. Industrial Development 3. Commercial Development outside of the Downtown area Please see Attachment B for additional information that assisted in the identification of the EDA's top priorities. Parties involved - Consultants: Richard Fursman and Jim Norman, Economic Development Authority: Todd Arey, Chair; Paul Hardt, Vice-Chair, Yvonne Flaherty, Erik Starkman, Chad Collignon, Councilmember Christy Jo Fogarty, City Staff: Peter Herlofsky, City Administrator; Lee Smick, City Planner; Tina Hansmeier, Economic Development Specialist; Others: Ruthe Batulis, NDC Chamber of Commerce; Ladonna Boyd, Dakota Electric Association; Doug Bonar, ISD 192 26 In January 2008 the City Council decided to disband the seven-member EDA board and begin serving as the representatives on the Economic Development Authority Board becoming responsible for all economic development initiatives. The new members of the EDA continued to focus their efforts on the priorities listed above which include: Downtown Development and Redevelopment, Industrial Development, and Commercial Development outside of the Downtown area. Parties involved - City Council: Kevan Soderberg, Mayor; Christy Jo Fogarty, David McKnight, David Pritzlaff, Steve Wilson, Economic Development Authority: David Pritzlaff; EDA Chair; Christy Jo Fogarty, Vice-Chair; David McKnight, Kevan Soderberg, Steve Wilson In January 2009 the composition of the EDA changed again as the Board received three newly elected officials that will also serve as representatives of the EDA. Parties involved - Economic Development Authority: Christy Jo Fogarty, Chair; Steve Wilson, Vice-Chair, Terry Donnelly, Todd Larson, Mayor; Julie May. (new EDA members are underlined) In January 2011- EDA composition was modified again with the addition of a newly elected Councilmember; Jason Bartholomay. Councilmember Bartholomay was elected as Chair ofthe EDA. Parties involved - Economic Development Authority: Jason Bartholomay, Chair; Christy Jo Fogarty, Vice-Chair; Terry Donnelly, Todd Larson, Mayor; Julie May In August 2011, EDA Ex-Officio members: Doug Bonar and Geraldine (Jeri) Jolley were sworn in as ex-officio members. fDA's current composition: Todd Larson, Mayor; Jason Bartholomay, Chair; Christy-Jo Fogarty, Vice-Chair; Julie May, Terry Donnelly and exofficio members; Doug Bonar and Jeri Jolley Historical Timeline and Achievements of the Economic Development Authority (EDA), 2006 - Present: Jan '06 '06 Nov '06 Nov '06 Nov '06 Jan '07 Farmington HRA transitions to an EDA. CityfEDA hired consultants to develop an Economic Development Strategy and identify best practices in Economic Development. Budget Imoact: $26.780 EDA adopted Mission Statement ICMA Bus Tour with City Council, EDA, and key staff. Cities toured included: Rosemount, Oakdale, Anoka, and Elk River. SWOT Analysis Conducted (Exhibit_) A joint meeting ofthe City Council was held. Building on the information generated by the SWOT analysis, interviews and research process, the group identified the six most important strategic issues confronting the City. Once those issues were identified, a series of action steps to address them were developed, and responsibities for follow-through and initial timetables 27 Feb '07 June '07 July '07 July '07 Aug , 07 Aug , 07 Sept '07 Sept '07 Oct '07 Oct '07 Oct '07 Nov '07 '07 Jan '08 '08 '08 '08 were set forth. Economic Development Strategy developed. Community Development Consultants hired to assist with development of a vision and Economic Development Plan. BudR:et Impact: $9,517 Visioning Process Began: Visioning Session focused on the structure of the EDA and organization of City Staff as it pertained to the EDA. McComb Group L TD hired to conduct a Market Study to assist the city in understanding the future demand for commercial and industrial development. BudR:et Impact: $67,739.50 Second Visioning Session: group participated in exercises to develop the vision for the EDA. First economic development newsletter was created and distributed to EDA members. Final Visioning Session: EDA's top three priorities identified. The information compiled was used to begin forming the economic development chapter for the 2030 Comprehensive Plan - 2008 Update and to create strategies and work plans for staff. Last remaining HRA-owned industrial park lot sold (revenue??). Economic Development Element of the Comprehensive Plan was developed. General Marketing Folder created. C/I Market Study completed, results assist City Planners with identifying future acreages needed to support additional commercial and industrial development/growth for 2030 Comprehensive Plan The EDA acquired and approved the demolition of a blighted building locally known as the "RisteJl Building to make way for future redevelopment efforts. Business Reinvestment Loan Created (CDBG) Transisition of EDA from 5 at large members and 2 council back to 5 council members Industrial Park expansion research began, consultants hired, supportable acreage identified, development of preliminary cost estimates. BudR:et Impact: $32,000 Business Outreach Program developed (77 businesses visited: year 1) Aesthetic Improvements to EDA-owned properties (McVicker and Riste) and renovation to EDA owned building (305 3rd Street) completed. BudR:et Impact: $ 28 '08 Business Development Grant Program Created (CDBG) . (Include number of grants awarded and amounts) '08 First Business (Service, Retail, & Dining) Guide Created '09 New EDA Members: Todd Larson; Mayor, Terry Donnelly, Julie May '10 2010 accomplishments include: park garage sold (5/2010)... May'10 Sold EDA owned 308 Elm Street property (former parks garage) to AK Performance Graphics May '11 Sold EDA owned 305 3rd Street property (former liquor store) on 5/31 to Threet Properties, Inc. July '11 Sold EDA owned 323 3rd Street property (McVicker Lot) to Philippians 4:19, LLC Aug'11 Ex-Officio members: Jeri Jolley (Term: 1/31/2014) and Doug Bonar (1/31/2016). Notes: Possible Issues . Need for review of Mission Statement . Review of Vision Statement . Provide goals for 2011 strategic plan . Review and update as needed SWOT Analysis for 2011 Strategic plan . Business friendly movement . Target businesses for marketing . 7-member EDA . More art in downtown? . Funding of economic development . Research and determine revenue sources for EDA 29 i I ____I ?fa- City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.cLfarmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: 2012 Community Development Block Grant Application DATE: December 27, 2011 INTRODUCTION The City has the opportunity to apply for approximately $35,000 in Community Development Block Grant (CDBG) funds for program year 2012 [July 1, 2012 through June 30, 2013]. To secure the grant money that is available, the City must prepare and submit an application that specifies eligible activities or projects to which the City intends to apply the available funding. A completed application is due to the Dakota County Community Development Agency (CDA) by January 15, 2012 accompanied by an approved City Council Resolution. DISCUSSION Annually, the City receives [federal] Community Development Block Grant (CDBG) funds which are distributed by the Dakota County CDA. Last year's allocation amount was $39,800. The CDA has advised us that President Obama has signed the 2012 HUD budget which includes an 11.6% cut to CDBG. Farmington's 2012 CDBG allotment is expected to be $35,183. CDBG funds can only be used for "eligible" projects or activities that meet certain "National Objectives." Typically such objectives include benefiting low- and moderate-income (LMI) persons, redeveloping slums or blighted areas, and improving housing that benefits individuals who fall within "low to moderate income" guidelines. A portion of each year's allocation of CDBG funds are typically directed to the City's Residential Rehabilitation account which funds the CDA's Home Improvement Loan Program. The CDA administers this program on behalf of all cities located within the county. All Dakota County residents are eligible to apply for the Home Improvement Loan Program which assists low-to-moderate-income homeowners with repairs and improvements to their homes. Funds in Farmington's residential rehab account are used exclusively for the benefit of Farmington homeowners. Historically, Farmington's rehab funds are depleted each year, forcing the need to tap into the county-wide rehab account. The CDA has advised me that all of our previously allocated funds ($84,212.15) have been committed to loans for Farmington residents. Additionally, the county-wide account funds have been depleted. There are two Farmington residents which have prequalified for loans but placed on a waiting list. Those on the waiting list will conceivably be served faster if Farmington allocates funds specifically to this activity. I recommend allocating 100% of 2012's allocation to Farmington's Residential Rehabilitation account activity because there is demand for this program. Following is an explanation ofthe attached spreadsheet showing activities with remaining CDBG balances. The EDA may consider allocating 2012 CDBG funds to any of the eligible activities detailed below. At least 50% of our 2012 CDBG funds must be allocated to an activity that qualifies as a low/mod benefit. Commercial Rehabilitation Grant Program ($53.500) The intent of the grant program is to prevent the deterioration of commercial structures and discourage blight, encourage projects that correct code violations and to eliminate accessibility restrictions. Grant funds are available to assist local businesses and/or property owners who are making qualified improvements to eligible commercial properties that eliminate conditions detrimental to public health and safety. Correcting code violations, code improvements and the correction of handicap accessibility issues are examples of qualified improvements. The maximum grant Council can award is $35,000. This activity meets the slum/blight national objective. *The grant awarded to Pellicci ACE Hardware Is not reflected In the above balance. Once the grant Is paid out the remaining funds should total roughly $20,000. Business Development Grant [BDGl ($17.510) The intent of the grant program is to retain and create local jobs by encouraging existing businesses to expand within city limits and to support entrepreneurial growth. Eligible uses include grants for business expansion assistance, microenterprise assistance and redevelopment assistance for certain parcels owned by the City's Economic Development Authority. This program can provide one more grant at the maximum grant amount ($15,000) before the program funds will be depleted and this activity closed. This activity meets the low/mod national objective. Specifically the business expansion use of the BDG program can not be funded further unless prior approval Is received from the CDA and Dakota County Board. Micro-Enterprise Assistance/Rent Assistance ($23.800) Council approved allocating 60% of 2011 CDBG to fund this activity. Grant funds are available to provide rental assistance to the owner of a microenterprise business that will occupy a currently vacant commercial and/or industrial space within the city. Microenterprise rental assistance is based on the tenant's lease terms and will not exceed 75% of the monthly rental payment (not to exceed $15,000) for up to twelve (12) consecutive months. Microenterprise assistance is an eligible use defined in the City's Business Development Grant (BDG) program. This activity meets the low/mod national objective. Micro-enterprise is defined as a business having five or fewer employees and Is viewed as a new start- up business with future ownership potential. The assistance provided would help offset the cost of rent for a period up to one year. The City of Farmington will administer this program. Public Service/New Part-Time Rambling River Center Staff Position ($16.000) Council approved allocating 40% of 2011 funds towards paying ALL personnel costs associated with a new part- time staff position. However, sometime after the CDBG application was approved by the CDA, but prior to the start of the 2011 program year, I was informed by the CDA that HUD has provided new interpretations on certain details. Staff has determined that it is unlikely we could meet the "new" requirements; therefore other eligible uses for this funding are being explored. The CDBG program was discussed at the September City Council workshop. The following information is provided as a reminder about CDBG program details: . Distribution of Funds: Annually CDBG grants are distributed from the federal department of Housing and Urban Development (HUD) directly to Dakota County, the recipient. The Dakota County CDA, the sub-grantee, implements CDBG program administration. The City of Farmington is a sub-recipient of CDBG funds and implements local CDBG activities directly. . ProJ!ram Obiectives: Each proposed CDBG-funded activity must demonstrate that it meets one of HUD's national objectives (with the exception of administration and planning), is an eligible activity, and is not considered a clearly ineligible activity. Generally the national objectives include: benefiting low- and moderate-income (LMI) persons and preventing or eliminating slums and blight. BenefittinJ! Persons of Low to Moderate Income (LMI): To qualify as LMI, a person or household must have income that is at or below 80% of the area median income adjusted by family size. Enclosed are the 2011 income limits. Income limits for 2012 will be received prior to the start of the 2012 program year (July 1, 2012) and can be made available upon request. PreventinJ! or EliminatinJ! Slums and BIiJ!ht: A structure is considered blighted when it is detrimental to the safety, health, morals or welfare of the community by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light, and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these factors. The EDA should discuss the 2012 CDBG allocation amount and identify how it would like to allocate the funds. The EDA's recommendation will be forwarded to the City Council accompanied by a Resolution in the format required by the CDA for approval at their next meeting. ACTION REQUESTED Provide a recommendation for allocation of Program Year 2012 CDBG funds. Respectfully submitted, Tina Hansmeier Economic Development Specialist FARMINGTON CDBG STATUS REPORT --- FUND BALANCES 30-Sep-11 Quarter 1 FFY2011 Activity 2004 2006 2007 2008 2009 2010 2011 Total Percent Residential Rehabilitation $18,669.00 $12,433.96 $31,609.19 $21,500.00 $84,212.15 43.2% Commercial Rehabilitation $29,800.00 $23,700.00 $53,500.00 27.4% Business Development Grant $17,510.00 $17,510.00 9.0% Public Service - Senior Center $16,000.00 $16,000.00 8.2% Microenterprise $23,800.00 $23,800.00 12.2% TOTAL (by year) $18,669.00 $12,433.96 $17,510.00 $29,800.00 $31,609.19 $45,200.00 $39,800.00 $195,022.15 100.0% TOTAL BUDGET 63,669.00 60,800.00 60,800.00 59,600.00 109,965.00 47,700.00 39,800.00 PERCENT EXPENDED BY YEAR 70.7% 79.5% 71.2% 50.0% 71.3% 5.2% 0.0% Note: The fund balances may include project administration. FY2011 Spenddown Ratio 4.90 2011 Income Limits Median Inc. = $82,700 (effective 6/01/11 for Dakota County) Income 1 person 2 person 3 person 4 person 5 person 6 person 7 person 8 person Limits household household household household household household household household 30% $17,400 $19,850 $22,350 $24,800 $26,800 $28,800 $30,800 $32,750 50% $28,950 $33,100 $37,250 $41,350 $44,700 $48,000 $51,300 $54,600 80%* $44,950 $58,400 $57,800 $64,200 $69,350 $74,500 $79,650 $84,750 * For the CDBG Program, the 80% limit (Low/Mod) is capped at the US area median income level. For example, a 4-person household at 80% of area median income is $66,160, but the US median income is $64,200; therefore, the limit is set at $64,200.