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HomeMy WebLinkAbout06.25.12 EDA Packet I AGO .4 s., ao 15 AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING June 25, 2012 6:30 P.M. CITY COUNCIL CHAMBERS Todd Larson, Chair; Julie May, Vice-Chair Jason Bartholomay, Terry Donnelly, Christy Fogarty Doug Bonar, Geraldine Jolley Action Taken 1. Call Meeting to Order 2. Pledge of Allegiance 3. Roll Call 4. Approve Agenda 5. Citizen Comments/Presentations 6. Consent Agenda a) Meeting Minutes (5/29/12 Regular) Approved b) May 2012 Budget Information Received c) AK Performance Certificate of Completion July Meeting 7. Public Hearings 8. Continued Business a) Review Strategic Plan i. Business Visits ii. Tracking Sheet iii. Dr. Dungy Survey Response Information Received 9. New Business a) Vermillion River Crossing Update Information Received b) MCCD Open to Business Program Invite to EDA mtg c) Grant Information Approved 10. City Staff Reports/Open Forum/Discussion a) Family Fresh Market Ribbon Cutting June 27, 2012 6/27/12 9:00 b) Ameriprise Financial Ribbon Cutting June 27, 2012 6/27/12 10:00 c) Park Dental Ribbon Cutting July 17, 2012 7/17/12 11:30 d) Razberry Beret Thrift Store Ribbon Cutting July 20, 2012 7/20/12 9:00 11. Adjourn ‘ez, MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting May 29, 2012 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:33 p.m. Members Present: Larson, Donnelly, Fogarty (by phone), May, Bonar, Jolley Members Absent: Bartholomay Also Present: David McKnight, City Administrator; Cynthia Muller, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Donnelly, second by May to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Donnelly, second by May to approve the Consent Agenda as follows: a) Approved Meeting Minutes (4/23/12 Regular) b) Approved Bills 4/23/12—5/28/12 c) Received April 2012 Budget APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. CONTINUED BUSINESS a) EDA Composition EDA members have been discussing changing the composition of the EDA to two Councilmembers and five residents. Staff has contacted the City Attorney regarding questions raised at the last meeting regarding taxing authority, final approval on spending the EDA budget, designation of ex-officio seats, allowing non-residents, and the affect on other boards and commissions. The City Attorney supplied answers to these questions. The EDA has had a preference for seven members and to make the change effective February 1, 2013. In December staff will advertise for seats and the two ex-officio seats would become official seats. The two Council seats would be appointed during the annual organizational matters. Having five residents on the EDA would mean budgeting$600 for stipends. Having three residents would cost$360 in stipends. Staff EDA Minutes(Regular) May 29,2012 Page 2 recommended to not designate seats, continue with the residency requirement, and it appears the EDA has a preference for seven members on the EDA. Member May was not sure they had decided on seven members. Mayor Larson noted they need to give staff direction today whether it is five, seven, or stay as we are. The majority wanted seven members at the last meeting, but had several questions. Member May preferred five members and liked staff's recommendation that there be no designation of seats and that members be residents of Farmington. She was not sure about the taxing authority and wanted to discuss that further. Member May did not want to box ourselves in by designating seats for certain groups. Mayor Larson and Member Donnelly agreed with not designating seats. As far as designation, Member Bonar noted while formal designation is not the best choice,he believed that a choice of diversity is a wise choice. Like minded individuals provide a single solution, not many options to consider. Member May felt that naturally happens as the Council selects the members. Member Bonar would be in favor of an informal designation and select people from different areas. Member Jolley stated if the composition is to be two Councilmembers and five residents, she hoped that we bring the new people on the board up to speed. There needs to be a review process before they start. Member Fogarty liked having a large number of residents and would like to designate having someone from the business community whether it is officially or unofficially. It should be someone involved in the community, but doesn't necessarily reside within the City limits. It is a unique board. They are a little autonomous from the Council and have some authority they can exercise without Council approval. Because of that and it being geared towards economic development, we should be more specific as to where it comes from. Mayor Larson clarified Member Fogarty wants to go against staff's recommendation to not designate seats. Member Fogarty replied yes, either formally or informally. The majority agreed to not designate seats. Mayor Larson asked about residency and if someone on the EDA has to be a resident of Farmington. Member Jolley recalled that was researched and there is an existing requirement for residency. Staff noted you would have to change the City Code. Mayor Larson felt members need to be residents of the City. Member Jolley stated if you change it so members do not need to be residents,then you need to put some sort of stop gate on it. Can you be a resident of another state? Can you be an absentee resident that has home in Florida? It gets very loose when you remove that. The best thing for the group would be to retain the residency. Member Donnelly agreed. This would be the only board that does not require residency. Member May also felt they should be residents. Member Bonar agreed they should be residents. While it is unique, it would not require EDA Minutes(Regular) May 29,2012 Page 3 residents outside of the community. Member Fogarty felt we need to consider people who do not live within the City limits,but function within the community. She would not want to eliminate someone because they own businesses in town, but then live outside the City limits. They are still very active in the community. Mayor Larson asked what if they own a business within the City, but do not own property in the City. Member Fogarty recalled at the last meeting they discussed having a seven member board with two ex-officio's who could be non-residents. We have to have someone in our business community working with our EDA. Mayor Larson noted hopefully someone applies. We have a tough time getting people to fill our boards and commissions anyway. It is a six-year commitment. Member May noted the recent articles about the Farmingtonians who have come back and now own businesses in the community. City Administrator McKnight reminded the EDA staff had originally recommended a total of five members because of the difficulty getting applicants. Member Jolley stated if we designate or encourage one of the appointed members to be from the business community, does that not complicate matters if they leave that business or go out of business? Then they no longer meet the requirements. If you start putting restrictions on, you put yourself in a corner. She felt there will be business people applying because of their interest. It would be a bigger problem to try to supervise people if they have a certain requirement others do not have. Member Donnelly agreed it makes it more complicated to administer and police. Being a resident is easy to verify. The majority of members agreed to maintain the residency requirement. Mayor Larson asked about the total number of residents. Member Fogarty wanted seven members. Member Jolley did not have a strong feeling, but the more people the more difficult to coordinate schedules. She would be okay with seven, but five would be more efficient. Member Donnelly preferred five members. Member May wanted five members. Member Bonar felt seven is a better number as two are from the Council. Mayor Larson liked the composition of the EDA the way it is and felt we should not change it. He felt they have not done due diligence in calling in experts to obtain answers rather than reaching out to fill new seats. If we do change,he wants five members. The consensus was for five members. Next members discussed taxing authority. Member May stated it sounds like we can give the EDA the authority, but still need Council approval. She felt once you give a body taxing authority it should be an elected body. City Administrator McKnight stated currently the majority of the EDA is elected officials, so that holds a lot of responsibility. He was concerned with non-elected officials setting a tax levy. Member Donnelly agreed,but it sounds like the final decision would rest with the Council and we could put that wording in the enabling resolution. City Administrator McKnight agreed that we could make it very clear in the enabling resolution that it would be like any other department request and ultimately Council would decide. Member May asked what is the point of giving them authority with conditions? City Administrator McKnight would not call it authority; he would explain it that it would be like a department request and EDA Minutes(Regular) May 29,2012 Page 4 Council would have final decision on whether to collect tax dollars to fund programs. We are collecting an economic development levy now; it is part of the City levy. This year we did $50,000 for operations,but Council made that final decision,not the EDA. Member May asked what the difference would be between saying the EDA does not have taxing authority and saying they do have it, but they have to follow this resolution, so why not just say they don't have taxing authority. City Administrator McKnight agreed,they would not have taxing authority. They would be treated like a department and go through the budget process like any other department. Member Donnelly stated it would be like the Park and Rec Commission making a recommendation to Council. He would prefer it to work that way. Member Jolley agreed with the recommendation. It would bother her being someone who is not elected,to have that kind of authority. Member Bonar was for diversity within strict limitations. Part of growth that occurs within a community in persons willing to serve for stipends is to better understand the workings of government. He does not know a person would willingly spend their time volunteering to be on a commission for the grand sum of$10/meeting and feel they have been crowned king and would tax their servants accordingly. It is a good exercise with the final decision remaining with the Council. Member Fogarty stated it is one thing to go with the staff recommendation,but she felt they should make sure there is someone from the business community whether or not they live in the City. It is another thing to fly directly opposite of state statute. She would like to have a business person on that authority and they would have to only be an advisory person. That would not diminish them at all. There have been very few times we have not taken a recommendation from a commission. According to the HRA statute, it seems we cannot have non- residents be anything more than advisory. She agreed the taxing authority needs to stay with the Council. (Member Fogarty left the meeting at 7:00 p.m.) Staff will place an item on the June 4, 2012, Council meeting to set a public hearing for June 18, 2012 for approval of the enabling resolution and ordinance. 9. NEW BUSINESS 10. CITY STAFF REPORTS City Administrator McKnight updated the EDA on the following items. A new thrift store, Razberry Beret Thrift Store will be opening in the Farmington Mall on hwy 3 in June. Park Dental will be moving into the former Immanuel Dental building on Elm Street. They will have a ribbon cutting on July 17, 2012. Quality Ingredients Corporation has been trying to move into the industrial park and that is still not complete. Family Fresh will possibly have a ribbon cutting in June. Shidor has moved next door to City Hall. The CDA building in Vermillion River Crossing has a temporary C.O. and will move in 17 tenants tomorrow and anther 21 tenants on June 19, 2012. It will be full EDA Minutes(Regular) May 29,2012 Page 5 by August 1, 2012, and they have 51 of the 66 units firmly committed. They will work with staff on a public open house in early October. Member Bonar asked about the status of the Elm Street sign. City Administrator McKnight is working with the City's insurance agent on an agreement between the City and the FBA for liability. Member Bonar asked if we could invite the CDA for an informal discussion to see what our next joint venture could be with them. Mayor Larson felt if there was something to discuss with them, we could invite them. Staff could invite them to provide an update on what is in Farmington now and what could be coming next. He would like to work with the CDA in a way that when you are finishing one project, you are already in the beginning stages for the next one. City Administrator McKnight will contact them. 11. ADJOURN MOTION by May, second by Donnelly to adjourn at 7:08 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 6/ §§ r § ' '! _ ! K ( § § I §� • " $,,- § ' .$..- V§ „ r§ . w\ | «, § . 2 . . . § f , §§ . 2 . ! . . . 69 te ( }\ A g ! \ ;, \ a j ! a \ a - k a 7 / 2 a # t § \ ? \ k { 3 g 1 a - \ / \ ` aƒ ! k d k ■ 0 { § m ® § § e ! k ! A , P / \ ! a ; G 0 f \ .5 # \ e m 2 ! A ! 7 a ,,Ls ! 9 i A f , f \ a S § 0 ! I i r.. . ! ! , | ' §E( �$ §§ \ \ I ■ $ /; I ,# °� / 2 - 3 |k � « ` 2 ®© I ,k ! § . 2 ■ | ■gc2 To . ! E r# iijU1j| !..3. z_ $!i!l k /! ! if ■/k | J § § §§IMI §B§ 4'4§§§g§§§§k§2 §§ k2 /ON, City of Farmington 3 430 Third Street Farmington,Minnesota OG�A ��Ci 651.280.6800•Fax 651.280.6899 moo 40.4 www.ci.farmington.mn.us TO: EDA Members FROM: Tony Wippler,Assistant City Planner SUBJECT: Contract for Private Development—Certificate of Completion(AK Performance Graphics,INC.) DATE: June 25,2012 INTRODUCTION Attached for your review and approval is the Certificate of Completion specific to the Contract for Private Development between the EDA and AK Performance Graphics,Inc for the property located at 308 Elm Street. DISCUSSION According to Section 8.1 of the contract, the EDA shall provide the developer with a Certificate of Completion after substantial completion of the minimum improvements. The improvements include, but are not limited to, roofing repair and replacement,and interior remodel. Attached, as Exhibit A, is a breakdown of the minimum improvements identified within the contract and the estimated costs associated with those improvements as well as the list of improvements that have been made to the building year-to- date and the actual costs associated with the improvements. The contract identifies the estimated cost of the minimum improvements to be $169,400. To date, Mr. Kurth has expended $167,680, which is a difference of-$1,700. Per the contract Mr.Kurth has until July 15,2012 to fulfill the obligations of minimum improvements. Based on the information provided by Mr. Kurth identifying the work that has been completed, it is staff's recommendation that substantial completion of the minimum improvements have been made and that the EDA should execute the attached Certificate of Completion. ACTION REQUESTED Approve and execute the attached Certificate of Completion. Respectfully submitted, iz, &J4Q Tony Wippler,Assistant City Planner Cc: Adam Kurth,AK Performance Graphics,Inc. CERTIFICATE OF COMPLETION The undersigned hereby certifies that AK PERFORMANCE GRAPHICS,INC., ("Developer")has fully complied with its obligations to substantially construct the Minimum Improvements under that document titled Contract for Private Development dated May 24,2010, by and between the Economic Development Authority in and for the City of Farmington(the "EDA")and Developer,as amended by First Amendment to Contract for Private Development dated July 18,2011,and that Developer is released and forever discharged from its obligations under the Agreement with respect to the obligations of Developer,and its successors and assigns, to construct the minimum Improvements,and the EDA waives any right,title or interest it may have in the Property, including a right of reverter. The Dakota County Recorder's Office is hereby authorized to accept for recording the filing of this instrument,to be conclusive determination of the satisfaction and termination of the covenants and conditions of the Contract for Private Redevelopment described above. IN WITNESS WHEREOF,the EDA has caused this Certificate to be duly executed in it name and behalf on or as of the date first above-written. Economic Development Authority in and for the City of Farmington By: Its Chair By: Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of ,20 ,by and ,the Chair and Executive Director, respectively, of the Economic Development Authority in and for the City of Farmington, Minnesota,a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public Exhibit A Minimum Improvements-Contract Est.Cost Current Runntna Expesnes To Date Act.Cost Flat roof repair $8,000.00 Flat roof $6,200.00 Pitched roof replacement $7,000.00 Insulation $7,500.00 Exterior roof trim $2,200.00 Framing&materials $7,000.00 Exterior paint $6,000.00 Sheet rock $16,000.00 Exterior building material&design $4,500.00 Interior prime&paint $4,600.00 New shop doors $2,000.00 Garage doors $5,200.00 Shop windows $4,200.00 Entrance door $2,100.00 Interior sheetrock removal $3,500.00 Electrical $12,000.00 Utilities $7,000.00 Additional lighting $500.00 Security install $6,000.00 Garbage $1,900.00 Misc. $5,000.00 Heater $780.00 2 gargae doors $16,000.00 Permits $4,500.00 Interior remodel $98,000.00 Pitched roof $17,200.00 Epoxy floors $7,000.00 TOTAL EST.COST: $169,400.00 Interior shop door $1,800.00 Concrete floor $15,000.00 Exterior painting $37,000.00 Plumbing $1,800.00 Heating/Air $2,400.00 Interior tile $900.00 Expoxy remaining shop floor $11,800.00 Interior tuckpointing/block repair $4,500.00 TOTAL ACTUAL COST TO DATE: $167,680.00 �o�ittl? City of Farmington �4' 430 Third Street ..")� o . �'. x; Farmington, Minnesota 651.280.6800•Fax 651.280.6899 %,:� G4Sl.A��`a`av www ci.farmington.mn.us TO: EDA Members FROM: Lee Smick, City Planner AICP, CNU-A SUBJECT: Economic Development Strategic Plan—Business Visits DATE: June 25,2012 INTRODUCTION/DISCUSSION Business Visits in July are on the 11th and 19th of the month. Please indicate if you are available to join staff on the upcoming visits. Also attached for your reference are the recent visits. The June 21st meeting summary will be sent to you before the EDA meeting on the 25th. • ACTION REQUIRED Indicate if you are available for the July visits. Respectfully sub 'tted, • 0 Lee Smick, City Planner AICP, CNU-A `sr > 4.) ki/ IN N N a M } rd 0 N .. cu 4:1 cl ._ v I O 2 Lt \O +M N N a� a 0 0 ;9 -g., go ,.2,0 9 4 mu, b 1 z P4 ° MI O ion s. F. ti ON 1.4 N - .E .C)0.1$ a ON r� tli b13 I c, as > � w a IJ • • • • • 'C, CU H 00 Lo_� N O 0: O M I ti *. 0 b rid O I O ° r-. O O N � rc. 5 0 ,bzi O iri x N ON co M O A - O .{ p i rd cz a) a w b 9 O cn ' ��, iti City of Farmington 430 Third Street N Farmington, Minnesota 651.280.6800•Fax 651.280.6899 81.•A PROS° www.cidarmington.mn.us TO: David McKnight, City Administrator FROM: Lee Smick,AICP CNU-A City Planner SUBJECT: Summary of Business Visit-May 3,2012 DATE: May 4,2012 The BR&E team included Mayor Larson, Council Member Bartholomay,and City staff(Lee and Tony). The team visited businesses in the Tamarack Shopping Center and Roundbank on May 3,2012. During all of the business visits below,Mayor Larson suggested that the businesses come to a Council meeting under citizen comments and introduce their business to the viewing public. A summary of each business visit is described below. Thrivent Financial Grant Beyl, owner,met with the BR&E team. He was pleased that Council Members were visiting businesses. When he moved to Farmington,he expected a 10%loss in his business,however,his company has grown by 50% since opening,with Dakota Electric being one his biggest clients. He chose his business location because of the high visibility on TH 3. He is proposing to expand his business in the future. He would like to build a financial office along TH 3,but he is also open to Vermillion River Crossing. He was very pleased with staffs assistance when he moved into this location. Anytime Fitness Kyle Henning, owner,met with the BR&E team. He was also pleased with the visit from the team and thought it was an excellent idea. In the past 6 years,he continues to grow his client list. He has seen an increase from homes in Empire Township. He's hoping to get more clients from Mystic Meadows,Parkview Ponds,and other homes in that area. He also stated that when Pellicci Hardware opened down the street,he saw an increase in his client list. He recently expanded into the space to the west and built a studio for yoga, etc.. He has also upgraded his technology through the installation of TV monitors on the elliptical and treadmill machines and a virtual instructor in the studio. He would like to see a stoplight on TH 3 and CSAH 66. Roundbank Kevin Kuboushek,bank manager and his staff met with the BR&E team. He would also like to see a stoplight at TH 3 and CSAH 66 to stop traffic on TH 3. Business continues to grow. He would like to see Farmington send out new resident packets that advertise businesses. He feels that 209th Street is being missed by cars traveling north on TH 3 because of the homeowner's shrubs directly south of 200 Street. Staff will look into this issue. He told the team that Roundbank will be rolling out a number promotional ideas in the upcoming months to draw even more business to the bank. Dunn Brothers Dave Harnett, owner,met with the BR&E team. He stated that he is steadily growing in sales. He stated that Dunn Brothers typical locations are in busier areas,but his store is doing quite well even though it doesn't fit the demographics. He just received 3 awards from Dunn Brothers for the growth of his store. He stated that businesses in Farmington need to ride out the long climb to profitability. He would also like a stoplight at TH 3 and CSAH 66. He agrees with the other businesses that Tamarack has a tough entrance to the businesses here. He is planning on expanding to the east to provide for a meeting room in the near future. Respectfully submitteI Lee Smick,AICP CNU-A City Planner �pommrr# City of Farmington 'y 430 Third Street > x7 N Farmington,Minnesota 651.280.6800 Fax 651.280.6899 ''4 PROMw`A www.ci.farmington.mn.us TO: David McKnight,City Administrator FROM: Tony Wippler,Assistant City Planner SUBJECT: Summary of Business Visits—May 10,2012 DATE: May 11,2012 The BR&E team included Mayor Larson,Council Member Bartholomay and City staff(Tony). The team visited three businesses in the Downtown on May 10,2012. A summary of each business visit is described below: Janie's HomeTeam/Market on Oak Janie Tutewohl,owner,met with the BR&E team. Mrs. Tutewohl mentioned that business for Market on Oak is up 20% in March and April from last year. She attributes a lot of this increase to marketing. She also mentioned that she has seen an up tick in the real estate market of late and housing prices also seem to be on the incline. She felt the City was missing out on advertising opportunities in our utility bills. She would also like to see more City employees and Council Members be more active in attending community events. Lastly,she believes a maintenance code should be considered to address both residential and commercial properties. Gerster Jewelers Jim Gerster,Jr., owner,met with the BR&E team. Mr. Gerster mentioned that business is surprisingly good. The store never closed after the recent break in.He believes the Farmington Business Association is a good thing and is really starting to take off. He has seen an increase in communication not only between the City and businesses but between businesses themselves. He specifically mentioned that the Car Show and Christmas Tree festivities have been really good not only for the downtown but the community as a whole. He mentioned that the City and/or the FBA should look at promoting the City with something similar to the Explore Minnesota commercial. He also indicated that it is difficult to get people from north Farmington to come south into downtown. This mentality needs to change somehow and maybe that is through promotion and advertising. Farm Bureau Financial Services Dan Pumper,agent and owner,met with the BR&E team. He stated that business is a little slow with the downturn in the economy. He has been in this current location for approximately 3 years and it has done fairly well over that time period. He mentioned taxes are high in town and he is not sure how some businesses from a cash flow standpoint are able to survive. He inquired about commercial vacancies and whether the City has developed or would be interested in developing and exit survey for businesses that are either in the process of closing or have closed. Respectfully submitted, Tony Wi pler,A sistant City Planner (4- 1kRift City of Farmington 'y 430 Third Street N Farmington,Minnesota GGOp 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: David McKnight, City Administrator FROM: Lee Smick,AICP CNU-A City Planner SUBJECT: Summary of Business Visit—June 13, 2012 DATE: June 13,2012 The BR&E team included Council Members Fogerty and Bartholomay, and City staff(Lee). The team visited businesses that included Aerospace Engineering, Bernard Dalsin Manufacturing,R&L Carriers, and Valmont on June 13,2012. A summary of each business visit is described below. Aerospace Engineering Bob Blume and Brian Anderson met with the BR&E team. They took the team on a tour of the facility. Their product is a rubber/plastic sheeting that covers equipment, etc., and is also used in space. Their product is on the International Space Station as well as numerous satellites. They also construct portable hyperbolic chambers for athletes, autistic children, and soldiers when they come back from certain missions. They have 73 employees currently and they are running two shifts. They do have room for expansion in the rear of their building. They enjoy being in Farmington, and they are in favor of curb and gutter design rather than ditches in the park. Bernard Dalsin Manufacturing Tim Dalsin met with the BR&E team. Their product is forming metal sheeting into fireplace vents. They have 18 employees and some of them are residents of Farmington. Most of the others come from Northfield and Bloomington. The reason they located in Farmington was the TIF program in the industrial park. They also liked the open lot to the west of their building. They are also looking to seal coat their parking lot and when the City does a seal coat project in the industrial park,they along with others businesses there would like to be notified so that they may utilize the company to seal coat their parking lots. Dalsin also likes the curb and gutter rather the ditches. R&L Carriers Mike Monforte met with the BR&E team. Mike has only been in this location since the first of the year. He said that their company's location was not dependent on how far they were from I-35 or US 52 because deliveries would have to be made anyway. They continue to be busy with deliveries. The bay area was quite impressive. They also like the curb and gutter. Valmont Jim Morris (CEO),Bill Cook(Controller), and Lindsey Calliguri (HR)met with the BR&E team. Valmont constructs light poles, communication poles,and flag poles. They said that they have 120 employees, 25%of which are Farmington residents. They have 1st,2nd, and 3r1 shifts working. They would like to see Farmington hold a Job Fair for businesses in the community looking for employees (Lee will be working with Lindsey on this idea). They are working with DCTC to start a manufacturing program to train students. Additionally, Valmont would like to see a"meet your fellow industrial businesses"to get to know their neighbors. Their employees would like a grocery store and more restaurants (Chipolte)in the community. They have to drive out of town for different choices. They don't have enough employees flying into the cities to warrant a hotel. They're also concerned about the daycare walking small children on the park streets because there are no sidewalks. Staff will check into that issue with the daycare. Respec ,0' sub ed, Lee Smick,AICP CNU-A City Planner Owe,// t dint ti��► City of Farmington �y 430 Third Street Farmington, Minnesota G4 651.280.6800•Fax 651.280.6899 www.cilarmington.mn.us TO: EDA Members FROM: Lee Smick, City Planner AICP, CNU-A SUBJECT: Economic Development Strategic Plan—Tracking Sheet DATE: June 25,2012 INTRODUCTION/DISCUSSION Attached is the monthly Tracking Sheet for the EDSP. Items continue to be completed including the Business Retention and Expansion Program. The tracking sheet is in the 2nd Quarter of 2012 with an ending date of June 30th. In the 3r Quarter, the EDA will need to direct staff as to their priorities for dealing with the following issues: business friendly, funding for Economic Development, branding Farmington (GROW), developing a business attraction team, and/or developing"shovel ready" sites. ACTION REQUIRED Review plan and provide comments to the above-mentioned items. 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QJ ° a C C m m = to ° O d Y '" y C 3 N cu C .,_•` 0. m C m Y O m C ° aJ 3 ° a s m ° > a o Y c 4-. 3 ° °° c an d i > t `o en v c ▪ 0 N 3 aJ m i C 7 N Y S v m O .° m a C C as �'i ` m O C .ti O - a C C 7 C O = aJ N E c a ° ° m 3 n S m r a ^ ti 0. • 3 Yv ra ? 2 a s ai a = 4 Y v a a E N c N w Y m E O E m al C o E • E a 0 c O 0 U aD o c N i .a RI 10 0. 9 U 'cl' U fa .O U = -a Ol '?- � ARM/yc� City of Farmington y 430 Third Street 1 a Farmington, Minnesota 651.280.6800•Fax 651.280.6899 °I I*?A Pno+rO www.ci.farmington.mn.us TO: EDA Members FROM: Lee Smick,City Planner AICP, CNU-A SUBJECT: Dr.Dungy Responses DATE: June 25,2012 INTRODUCTION/DISCUSSION On June 6th, I spoke with Dr. Dungy about his responses to the survey(see both documents attached to this memo) that I sent him concerning his development process in Farmington. A summarization of our conversation is as follows: Dr. Dungy liked that there was a "face of the city" (Tina) when he was asked if the staff was responsive to his questions. He heard from some of his patients that the City would be hard to deal with throughout the development process. He was told that Lakeville is different in developing property, however, no one told him what that meant. APPRO Development was helpful because they had worked with Farmington before and there was no re-inventing of the process. Staff's solution to providing a"face of the city"type leadership through the development process will be handled with the institution of a Development Assistant. As discussed in April, a Development Assistant will be assigned to an applicant who is going through the 30-working day Commercial Development Review Process. This will allow the applicant to have one City contact for the entire process. The Development Assistant will schedule meetings with appropriate staff members, meet with pre-con consultants, and work with the applicant on a daily basis. The assistant will typically be the City Planner or Assistant City Planner since they are familiar with the development process. Staff will review the City of Lakeville's development process to determine if revisions to our process would be beneficial. ACTION REQUIRED Review the responses from Dr.Dungy and comment on staff solutions to them. Respectfully submitt , `i/ Lee Smick,City Planner AICP,CNU-A '� //I Question#1 Most of my communication was with Tina Hansmeier. She was very professional and always addressed any and all questions that I had. She was the face of The City of Farmington for me in this entire process. She tried to always find ways to be accommodating and seemed to be a big part of my comfort in this process. Question#2 Yes,same as question#1. Question#3 The biggest problem that arose was having to deal with easement issues after signing the purchase agreement. That process proved to be time consuming and costly. It proved to be the one most single point of contention and distraction throughout the whole process. It proved that the buyer needed to solve the problem of resolving the complications that came with not having a clean survey to work with. Not having a clean survey was not solely the problem of the seller, but as the buyer, I was uneducated as to its importance since It was my understanding that there were no issues to be concerned with. That part of the situation I take full responsibility,that was faulty consul from my team. Question#4 I don't have any suggestions. I think the City of Farmington and the EDA seemed always to be positive about our project and seemed to be in our corner. Question#5 I have heard throughout this process that I would find dealing with the City of Farmington a frustrating endeavor. My experience was just as I expected it to be,an opportunity,to continue to operate our practice here in Farmington. The City is founded here to protect the City and to move in its best interest. Our responsibility was to decide if we could accept that very important premise. In the end, we didn't want more than we deserved,just an opportunity to put our best foot forward. So to that end,we were(are)given that opportunity and this project has met our expectation. Question#6 No, I think that our expectations were met and I hope that the City's expectations were met also. • 46 i , City of Farmington 'S 0 430 Third Street c = Pio Farmington,Minnesota 651.280.6800•Fax 651.280.6899 www.ciSarmington.mn.us Dr. Dungy: Thank you for your time on giving feedback to us concerning the recent development of Immanuel Dental in downtown Farmington. The City will use your responses to determine if changes need to be made to our processes. Did you find staff courteous and helpful? Was staff responsive to all of your questions concerning this process?How? Were you confused with the development process that was explained to you? Do you have a suggestion for the Community Development process that you just went through? Would you recommend building in Farmington to others? Is there anything we can do better? Sincerely, Lee Smick,AICP CNU-A City Planner �oFFaiy��, City of Farmington v 's 430 Third Street --rX Farmington, Minnesota �A�: 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: David J. McKnight, City Administrator SUBJECT: Vermillion River Crossings Update DATE: June 25, 2012 INTRODUCTION At a recent City Council meeting,the issue of the Vermillion River Crossings development was discussed. At that time a request was made to have the owners of the project attend an EDA meeting to provide an update on the project. DISCUSSION Staff has arranged for a representative from Dougherty Financing to come and discuss the project with the EDA. BUDGET IMPACT None. ACTION REQUESTED Hear the presentation by the representative from Dougherty Financing and ask any and all questions that you might have on this project. Respectfully submitted, David J. McKnight City Administrator �o�cARMiyc�► City of Farmington '� 430 Third Street �o �, . Farmington,Minnesota �1a64s 651.280.6800•Fax 651.280.6899 pRO1* wwwci.farmington.mn.us TO: EDA Members FROM: Tony Wippler,Assistant City Planner SUBJECT: MCCD"Open to Business"Program proposal DATE: June 25,2012 INTRODUCTION/DISCUSSION Planning staff has recently begun participating in a bi-monthly Economic Development Group consisting of ED professionals from around Dakota County. This group has been informally discussing the potential partnering with the Metropolitan Consortium of Community Developers (MCCD) to establish an "Open to Business" presence in Dakota County. The Economic Development Group has asked the City of Farmington along with 10 other Dakota County Communities to determine their level of interest in monetarily participating in establishing such a program. Background on MCCD and the Open to Business Program MCCD is a 49 member association committed to increasing opportunities for development of quality, community-based projects through collaborative action on public policy issues, loan fund development, public education efforts, and long- term strategic planning. The "Open to Business" program is designed to provide intensive one-on-one technical assistance to small City business owners and entrepreneurs who are intending to establish, purchase, or improve a business in a participating City. Some of the technical assistance that would be provided includes: • Business Plan development • Feasibility analysis • Marketing • Cash flow and other financial projection development • Operational analysis • City and State licensing and regulatory assistance • Loan packaging,and other assistance in obtaining fmancing • Help obtaining competent legal advice Attached to this memorandum please find a proposal from MCCD that has been submitted to the Economic Development Group outlining a proposal for establishing an "Open to Business" program in Dakota County. Under the attached proposal, it would require $150,000 annually to fund the program Countywide with Farmington's share being $10,000 (the CDA is currently proposing to cover half of the cost; therefore the actual city cost would be $5,000). Each Communities share of the $150,000 would be based on population with the larger communities paying more. If MCCD secures a contract with Dakota County they would hire a full-time staff person to essentially run the program for the participants. The staff person would likely be based out of the CDA office but would have set hours at each of the participating communities offices. MCCD can be made available to give a presentation at a future EDA meeting. BUDGET IMPACT $5,000 would have to be budgeted for in 2013 if the EDA is receptive to participating in the program as outlined in the attached proposal. ACTION REQUESTED Review the attached proposal from MCCD and provide staff with the level of interest in participating in establishing an "Open to Business"program in Dakota County. Respectfully submitted, '147 (1%) Tony Wippler,Assistant City Planner ORE MCCD is TO BUSINESS in your community Who is MCCD? The Metropolitan Consortium of Community Developers(MCCD)is a 49 member association committed to increasing opportunities for development of quality,community-based projects through collaborative action on public policy issues,loan fund development,public education efforts,and long-term strategic planning. Through these efforts,we have been able to demonstrate the effectiveness and efficiencies gained by a shared vision and cooperation. Our mission is to: "work collectively to build strong, stable communities by leveraging resources for the development of people and places." Our goals are to: 1)increase popular,political,business,and fmancial support for community-based housing and small business development organizations;2)create access to loan capital and technical assistance for emerging entrepreneurs; and 3)increase the effectiveness of community-based development through coordination,collaboration,and capacity building activities. MCCD's work is centered on three distinct program areas:Emerging Small Business Program,Member Convening,and Public Policy. Emerging Small BusinessProgram: Provides capital access and technical assistance for existing businesses and aspiring entrepreneurs who are unable to fully access the commercial banking system. The organization funds or participates in an average of 50 loans per year,with loan amounts of up to $100,000. Along with capital,MCCD staff provides more than 2,000 hours of direct technical assistance to entreprenuers. Technical assistance services include business plan development,loan packaging, feasibility studies,cash flow and financing projections,marketing plans,assistance with licensing and filing requirements,and development of sound financial management and tracking systems. Historically, more than 80%of MCCD's loans have been to minority borrowers. For many of our borrowers the loans provide self-employment,and unique opportunities for advancement and personal enrichment as business owners that may not be available to them as employees. Open to Business is a part of the Emerging Small Business Program. Convening:MCCD acts as a convener for our members. This is accomplished through monthly meetings of our Housing Committee,Economic Development Committee,and St.Paul Task Force. Agendas for each reflect the focus of the participating members. Meetings typically involve guest presenters on topics of relevance, strategy sessions related to common concerns, or general updating and sharing among the attendees. On at least an annual basis, staff from the City of Minneapolis' Community Planning and Economic Development(CPED), City of St.Paul's Planning and Economic Development(PED),the Minnesota Housing Finance Agency(MHFA),the Family Housing Fund,and Hennepin County among others,would be invited. Public Policy: With the combined expertise of the leading community development organizations, MCCD has become a recognized and respected voice on housing, small business development,and inner- city commercial development. Through the work of our standing committees,MCCD shapes an annual policy platform and legislative agenda that is formally adopted by the board of directors. These documents provide direction to staff as to items MCCD takes the lead on,those that we support others, and those that we monitor. Aside from the adopted positions,MCCD responds frequently to new program proposals,changes in policy or procedures,and funding changes at the local,state and federal levels. MCCD is TO BUSINESS in your community What is Open to Business? MCCD's Open to Business program brings on-site business services specialists who can expand your community development staffs expertise in such areas as start-up fmancing and business plan development. We can respond to requests for business assistance when those requests are beyond the range of the services normally provided by your municipal agencies. Open to Business Technical Assistance Services in Dakota County: MCCD will provide intensive one-on-one technical assistance to small City/County business owners and aspiring entrepreneurs intending to establish,purchase, or improve a business in the City/County. Technical assistance includes,but is not limited to the following: > Business plan development > Feasibility analysis • Marketing > Cash flow and other financial projection development > Operational analysis > City and State licensing and regulatory assistance > Loan packaging, and other assistance in obtaining financing > Help in obtaining competent legal advice MCCD intends to hire a full time staff person once the minimum amount of contract is secured in Dakota County. This staff member will be based in Dakota and Carver County full time. The business advisor will be available to meet clients at the various city halls of municipalities that are OTB cities or at their place of business. This staff person will be based out of donated office space either at the Dakota CDA or another facility in the area. Currently in OTB cities in Hennepin County we hold two-hour"Test Drive Your Business Idea" sessions once a month. We plan to offer this service to Dakota County municipalities. MCCD has offered technical assistance services since 2003,primarily through our staff facilitator,Rob Smolund. Rob came to MCCD from the City of Richfield Enterprise Facilitation project—a Hennepin County supported initiative. In the years since, our program has added specialists in the areas of business accounting, finance,real-estate development, and regulatory compliance. We now offer a team of professionals and former business owners who can provide real world advice to clients, and tailor that support to meet each client's specific needs. Depending on the needs of the client,that assistance can include business plan development, feasibility studies, cash flow and fmancing projections,marketing plans, licensing and filing requirements, and development and implementation of sound financial management and tracking systems. Even if the client can obtain all their financing from a bank, staff will assist them in preparing their loan request and will advocate for the client with the bank. In essence,MCCD staff members become an advisor, an advocate, and a partner for that entrepreneur to lean on. In addition, each entrepreneur can draw on the diversity of backgrounds and expertise of our team i , OPEN MCCD is TO BUSINESS in your community of experts, gaining the kind of support more established businesses benefit from with hired professionals and/or Boards of Directors. Open to Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD's Emerging Small Business Loan Program(see Exhibit B Small Business Loan Program Guidelines below). MCCD also provides its fmancing in partnership with other community lenders,banks or municipalities interested in making capital available to residents and/or businesses in their community. EXHIBIT B Small Business Loan Program Guidelines Loan Amounts: • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a"for-profit"business. • Business must be complimentary to existing business community. • Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: • Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates: • Loan interest rate is dependent on use,term and other factors,not to exceed 10%. Loan Term Length: • Loan repayment terms will generally range from three to five years,but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. ill OPEN MCCD is ' TO BUSINESS in your community Open to Business Loan Products MCCD manages a multi-million dollar loan pool consisting of a mix of State,Federal,Bank and private capital sources. We are able to structure financing packages for a variety of business purposes that are flexible and designed to either enhance a business's opportunities to leverage private financing, or act as a bridge to future financing be traditional capital markets. Below are some examples of the financing packages available to Open to Business clients: • Loan Packaging/Facilitation MCCD staff can assist potential borrowers with the preparation of business plans,cash flow and other financial projections and loan application materials. Our staff can assist entrepreneurs in identifying borrowing needs and accessing community lending programs that provide favorable terms and conditions for small business borrowers. We work with our clients to help them fmd the financing that best meets their unique needs. • Micro Loans Direct loans from MCCD for a variety of business purposes, including inventory, working capital, asset and equipment purchases, and start-up costs. Typical loan terms of 3-5 years, loan sizes up to $25,000 for retail/service businesses, or$50,000 for manufacturing businesses. This program is targeted to start-up and early stage businesses that cannot secure financing from traditional commercial lenders. • Four Percent Loan Program MCCD loans in partnership with private lenders for physical improvements and hard asset/equipment purchases. MCCD can provide financing of up to $40,000 at an interest rate of 4%provided that its funds are matched by an equal or greater amount of bank funds. The 4%rate is available for bank partnership loans provided that the term on the MCCD loan does not exceed five years. • Real Estate Participation Loans MCCD loans in partnership with private lenders to provide gap financing for real estate acquisition projects—including projects fmanced through the SBA 504 program. MCCD matches the bank's rate. MCCD also matches the bank's term provided that the term does not exceed 10 years. • Real Estate Acquisition Financing MCCD,in partnership with private lenders,provides permanent term fmancing for commercial real estate acquisition—up to 90%of the property's appraised value. MCCD OPEN MCCD is TO BUSINESS in your community will provide up to 40%of the appraised value,with the bank providing 50%and holding first secured position. MCCD will match the bank's rate with terms up to 10 years (though amortizations may be longer). • Transactional Financing MCCD provides short term loans for businesses whose cash flow cycle inhibits them from making regular monthly loan payments. Transactional loans are often used by construction contractors who have received or about to receive a construction contract with a community agency. MCCD can provide up front financing to cover the cost of labor and material associated with the contract. When the work on the contract is completed,the contracting agency issues a two-party check to cover the completed work, payable to MCCD and to the contractor. Larger loans are also available for businesses with performance bonds and escrow payment arrangements. Loan Origination and Servicing MCCD seeks to integrate its financing products with other available resources in its service areas. To facilitate that integration,MCCD may be able to originate,package,underwrite and potentially service loan funds or programs offered by the County,individual Cities, or other Development authorities. Partnerships in other Open to Business communities include management of community facade/fix-up grants,packaging of City-controlled loan products, and full underwriting and servicing of Commercial loans with City funds "purchasing" a portion of the total financing. Where appropriate, MCCD and the municipal lending authority shall enact a separate agreement to govern the rights and duties of each party to such a partnership. OPEN. MCCD is TO BUSINESS in your community Dakota County Fees: Based on MCCD's current work load and resources,we would have to have a minimum of$100,000 in annual fees to begin work in Dakota County.The individual city pricing is listed below. To avoid confusion on what city is an Open to Business city,we would recommend covering all of Dakota County for$150,000 annually. Whole population employment county OTB (2010) (2011) Annual Fee Dakota County 400,000 170,582 $150,000.00 So_rt by population;largest to smallest Open To population employment Business (2010) (2011) Annual Fee Eagan 64,206 49,032 $ 15,000.00 Burnsville 60,306 31,656 $ 15,000.00 Lakeville 55,954 14,522 $ 15,000.00 Apple Valley 49,084 14,350 $ 15,000.00 IGH 33,880 9,647 $ 12,500.00 Hastings 22,172 8,303 $ 10,000.00 Rosemount 21,874 6,980 $ 10,000.00 Farmington 21,086 4,461 $ 10,000.00 SSP 20,160 8,112 $ 10,000.00 WSP 19,540 7,683 ' $ 10,000.00 MH 11,071 11,528 $ 7,500.00 City Total 379,333 166,274 $130,000.00 Marketing Open to Business: • Inform all city staff of OTB program, especially staff that has contact with prospective entrepreneurs and existing businesses. Have OTB staff make short presentation at city staff meetings • Feature OTB on website, especially advertise monthly walk in counseling sessions • Include article in city newsletter • Notices in utility bills • Promote program through local chamber of commerce • Coordinate meetings with key community bankers and OTB staff • Press releases to community newspapers on businesses helped by OTB qc__ �o�E�Miy��, City of Farmington 'z 430 Third Street Farmington, Minnesota %,,,41, ��s 651.280.6800•Fax 651.280.6899 A PRot www.cilarmington.mn.us TO: EDA Members FROM: Lee Smick,City Planner AICP,CNU-A SUBJECT: Grant Information DATE: June 25,2012 INTRODUCTION/DISCUSSION Staff recently attended a seminar entitled"Tips and Tools for Grantseeking Success". Some of the topics included researching foundations for funding, developing a grant proposal, and reviewing grant research. The Minnesota Council of Foundations presented the seminar. One of the tools that were included at the presentation was the Minnesota Grantmakers Online resource opportunity(see-attached brochure). This tool allows grant seekers to go to an online site and find grants. It fords funding prospects, helps create stronger grants by understanding what grant makers want for a proposal, and researches grant activity from the past to review winning proposals for a specific grant. The online resource features information on more that 1,400 Minnesota foundations. Of those foundations, 150,000 past grants have been awarded to grant seekers between$2,000 to$20,000. The cost of the online resource is $175/year for basic service where staff could review grants by grant maker names. This program provides profiles on grant makers that may allow unsolicited grant requests. The deluxe service includes the opportunity to review grants by the grant name or by the grant maker. The deluxe price is$260/year. BUDGET This amount has not been budgeted for within the Community Development Department's budget. ACTION REQUIRED Review the attached brochure and determine if the EDA would like to commit to this online resource. Respec l _- -:'tied 41101P 1111. ee mick,City Planner • w. .i 4 r't a ir. ,�1."• _ t '&4i ` ti }• 'aY'•';ki i tif' ` . iF :F, :?• E ;n«•S s S e i,; -.. . ', --_, A., „ti. 1 .4,,, ' ' ir4j)::*,-.'.- .'L '' " * . ".' :',."':, ,,,!,.,..-,.:.::c0),.,--„.:,,;:i.:,,:ii „4_.!5.:!,,,,,-;.; , l"' • a• Z W L;• ', a- 7 i :'- �o �`. / _ wr ., F -4-,< i'Y,, , `Z �J � 'y .:V. . .4 0 N: OZ +mot ' r,` :' _Y. z.. . , - '.---.------!------, ------.4 jAii i- ";:, Ce z''' g „,,c .c. 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