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HomeMy WebLinkAbout01.28.13 EDA Packet ao�FAR,�jy,� ,, 'h• vaore�°) AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING January 28, 2013 6:30 P.M. CITY COUNCIL CHAMBERS Todd Larson, Chair Jason Bartholomay, Terry Donnelly, Christy Fogarty Douglas Bonar, Geraldine Jolley Action Taken 1. Call Meeting to Order 2. Pledge of Allegiance 3. Roll Call 4. Approve Agenda 5. Citizen Comments/Presentations a) Introduction of Mark Lofthus—New Economic Development Director, Dakota Electric Introduced b) Introduction of Ms. Laurie Crow- "Open to Business" Program Tabled 6. Consent Agenda a) Meeting Minutes (11/26/12 Regular) Approved b) Bills: 11/21/12— 1/27/13 Approved c) November 2012 Budget Information Received 7. Public Hearings 8. Continued Business a) Review Economic Development Strategic Plan i. Summary of 2012 Accomplishments—Tracking Sheet ii. Business Visits 2012 Summary and Plan for 2013 iii. Business Attraction Plan iv. EDA Business Subsidy Policy v. Bank Summit Date and Information Information Received 9. New Business a) Triton Properties, LLC—Commercial Rehab Grant Application —CDBG Funding Approved b) Approve Joint Powers Agreement—"Open to Business" Program Approved c) CDBG Funding Request for FY2013 and Proposed Revision of Business Development Grant Program Approved d) New EDA Members Orientation Information Received 10. City Staff Reports/Open Forum/Discussion a) 2012 Members Information Received 11. Adjourn MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting November 26, 2012 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:34 p.m. Members Present: Larson, Bartholomay, Donnelly(arrived 6:34 p.m.), May(arrived 6:36 p.m.), Bonar, Jolley Members Absent: Fogarty Also Present: David McKnight, City Administrator; Lee Smick, City Planner; Cynthia Muller, Executive Assistant 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bartholomay, second by Donnelly to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Donnelly, second by Bartholomay to approve the Consent Agenda as follows: a) Approved Meeting Minutes (10/22/12 Regular) b) Approved Bills 10/22/12— 11/20/12 c) Received October 2012 Budget APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 9. NEW BUSINESS b) Tax Relief Request—Tax Abatement This item was moved forward on the agenda to accommodate the audience. Jeremy and Tom LaBeau, owners of Installed Building Solutions,requested a tax relief for the former PIC property in the industrial park which they recently purchased. The real estate taxes for 2012 for the PIC property are$93,000 plus taxes for their current property are$26,000. There will be an additional 50 employees hired and they will also be purchasing additional equipment. City Planner Smick gave an explanation of tax abatement. It is a rebate rather than an exemption from paying taxes. It allows each major taxing jurisdiction to contribute. The need for abatement must be determined and there are restrictions as far as the amount allowed. EDA Minutes(Regular) November 26,2012 Page 2 If the City were to abate the total taxes it receives each year from this development,the maximum abatement would be $367,375 for a 15 year period. The City would pay taxes back to the property owner each year amounting to $34,392/year for the maximum abatement for 15 years. Another way to calculate it is by the amount of market value increase. In that case the pay back amount would be$6,920/year. A gap analysis review should be done to determine how much the property owners need to make the tax payment. There is also a Minnesota Investment Fund available from DEED for a maximum of$500,000. This would be state funding. The City would have to apply for this on behalf of the property owner. It benefits industrial and commercial uses and health complexes. It is for businesses providing more jobs and adding a tax base to the community. DEED wants to see a 50%contribution of private funds from the owners. Another option is CDBG funding with a maximum of$15,000. They would have to provide low-moderate income for 51% of their employees. Member Bonar noted they are currently a business owner on First Street for the last 2.5 years. He asked about the square footage of the current two properties as compared to the PIC property. Mr. Jeremy LaBeau replied they will quadruple the amount of space by moving and would get their operation under one roof. They currently have 54 employees and would double their operation. Member May asked why this is an EDA issue rather than Council. Staff explained it is an economic development tool and the EDA recommendation would go to the Council for final vote. She was not a fan of abatement. It is difficult to judge whether one business should receive abatement over another. It should come in the form of tax relief and lower everyone's taxes. She has been trying to lower taxes for four years. She did not know how to judge whether they should receive abatement and other businesses should not. The City will still need a certain amount of money so it will shift to other businesses and homeowners. Mr. Jeremy LaBeau stated they should look at the business growth and the number of people they will employ and bring in. It is about jobs and the investment they are making in the community. Member Bartholomay was not a fan of tax abatements. He was in favor of the other options;the DEED investment fund and CDBG funds. He felt we need to develop our own type of grant or funding program so it will work for any type of business. Once we open the door with tax abatement, other businesses will request it also. There are other ways to provide relief and agreed Council needs to lower taxes as a whole. We can look at that with a strategic plan and goal setting. EDA Minutes(Regular) November 26,2012 Page 3 Member Jolley recalled there was a business owner that was frustrated that there are a couple businesses that were new and were on a TIF or abatement program. He felt the burden of those taxes was being shifted to smaller businesses which was unfair. She liked the fact they are an existing business and they are successful and expanding. Lacking any formal criteria to qualify, they are a deserving applicant. The piece we are missing is equality among applicants. Member Donnelly asked about the City's history with tax abatement. Staff noted this has not been done before. Their current property is up for sale. They are looking for some help during the transition. Member Donnelly noted there are probably a lot of people applying for the investment fund. City Planner Smick stated the CDBG funding is a maximum of$15,000. The money is allocated to certain funds and not all can be moved around. Member Donnelly thanked them for staying and growing within the community. He realized they are looking for anything that is helpful. They are a proven business in town, however 15 years is a long time for funding. He asked about the timing of funds on any of the options. Staff noted as far as 2013, the budget is completed. Next year,the EDA should look at a long term plan for funding assistance. The owners need to give us their timeline and an amount needed. As the budget is set, this would not happen in 2013. City Administrator McKnight stated any abatement done in 2013 would put a hole in the budget. We worked to fill the holes for next year. The budget will be approved next Monday, and we don't want to put a hole in it a month or two later. The Finance Director has gone through the EDA budget for this year and next year. She has determined when the EDA talked in 2011 about the one-time transfer to the EDA to eliminate the negative fund balance,that$175,000 did include the loan to the storm water trunk fund. We will have enough money in 2012 to pay that loan off because we transferred money month by month, and at the same time we put$33,500 in the budget for 2012 to pay this year's payment so we doubled up on this year. This means the loan can be paid off in 2012 and going into next year we will have a small positive fund balance and we will also have the $50,000 transfer that the EDA will have access to. Member Bonar agreed 15 years is a long period of time and Mr. LaBeau needs some short term money. He asked about a range of years. Mr. LaBeau replied three to five years would help as it will possibly take two years to transition. Member Bonar asked if they could give the EDA 60-90 days to put together a list of mutually beneficial items for them and the City. City Planner Smick added staff could also prepare a process and criteria for the application. Chair Larson suggested looking at the application for the CDBG funding and apply for the DEED investment fund. While that is being processed we can learn more about the tax abatement process. He asked staff to double check the numbers on the loan, develop criteria for requesting funds from the EDA, and a process to approve tax abatement. Member Bonar asked that this be an agenda EDA Minutes(Regular) November 26,2012 Page 4 item within the next 90 days so the current EDA can finalize this. City Administrator McKnight cautioned the EDA will not have $50,000 until the end of next year or possibly June with receipt of the first half taxes. 8. CONTINUED BUSINESS a) Review Strategic Plan—Tracking Sheet Staff and the EDA is currently working on the business recruitment objective which includes funding. i. Grow Farmington Update and Buy Local Campaign City Planner Smick has distributed the Shop Local stickers to businesses and is looking at additional advertising. ii. Farmington Boys Tiger Classic Basketball Tournament and Dazzle Day This event will be in town this weekend with 176 teams coming. City Planner Smick will be putting out directional signs for restaurants and shops and banners throughout town. Dazzle Day will be held on Saturday. iii. Business Visits There were no visits in November due to scheduling conflicts. The EDA has the opportunity to visit the FAA and December 7, 2012,was chosen. b) Follow-Up to October 22,2012 EDA Meeting City Planner Smick provided answers to questions raised at the last EDA meeting. In the 2008 comprehensive plan,the City was required to have 492 affordable homes;that has changed to a range of 345-492. Farmington is the number one community to put together affordable housing. The Met Council considered $216,700 for a home and$1,132/month for rent is affordable. Regarding a user-friendly website, staff is working on a link from the home page for information on available properties. A business owner had asked about recycling in the downtown area. This is currently not available. Staff is concerned with cross-contamination, and we would have to have business buy-in. Staff is researching this further. City Planner Smick provided a spreadsheet on CDBG funds. The CDA wanted the City to put$33,000 in residential rehab. The business development grant has $15,000 and there has to be a safety issue or low-moderate income to use this. The microenterprise fund is for rent for commercial businesses and the owner has to meet criteria to be below a certain amount for their household income. It is difficult to get CDBG money because of the different criteria. The commercial rehab funds can be shifted to other areas with CDA approval administratively. We still need to subtract $24,914 from commercial rehab which was paid to Pellicci Hardware to repair their roof. The CDA wants to move $17,510 from business development into residential rehab. However, $15,000 of that might be able to go to Installed Building Solutions. The EDA suggested moving the $23,591 commercial rehab to business development and that could be used for two years worth of funding for Installed Building Solutions. EDA Minutes(Regular) November 26,2012 Page 5 City Planner Smick proposed having a bank summit in March with new EDA members. Anchor Bank and Castle Rock Bank agreed this is a good opportunity. MCCD is also in favor of this. 9. NEW BUSINESS a) Business Attraction Program—City Brochure City Planner Smick prepared a draft business attraction program. This plan will not start until February 25, 2013, when the EDA commits to wanting economic development and also in March when the City Council commits. The timeline for the set-up is from February 25, 2013 —July 1, 2013. City Planner Smick outlined the steps. EDA members were pleased with the framework. Member May cautioned against getting bogged down with a plan rather than actually doing the work. Member Bonar agreed there is a lot of detail. Member May suggested the EDA determine the priorities. c) Vermillion River Crossing Sales Request A church was interested in Lot 9, but that is no longer the case. The City has 74 acres of tax-exempt church land. Mr. Dale Severson wanted to know if the EDA would be receptive to a dental, senior housing, or medical building as opposed to commercial. Medical and dental is allowed,however senior housing is not. The CDA building was part of the mixed-use area. Staff asked for thoughts from the EDA if more senior housing should be allowed. Chair Larson stated Vermillion River Crossing is totally different than when it was planned and we need to redo the entire area. City Planner Smick provided permitted and conditional uses for the Spruce Street commercial and mixed-use district. Mr. Severson does have leads on the uses requested. Member May cautioned about changing the uses as we have strip malls now that are being used for daycare centers and no retail. Chair Larson stated retailers are saying we need more rooftops. 10. CITY STAFF REPORTS a) The Mug Ribbon Cutting—November 30,2012 A ribbon cutting for The Mug will be held on November 30,2012. There will also be a ribbon cutting for Wholesalers Furniture Direct on December 5,2012. b) Cancel December EDA Meeting Reminder Members agreed to cancel the December EDA meeting. Member Jolley reminded everyone of the FBA holiday party on December 4, 2012 sponsored by Castle Rock Bank. Member Donnelly mentioned the January EDA meeting is with the current composition. Staff reminded the EDA the composition will be changed to two Councilmembers and three residents effective February 1,2013. Councilmembers will be selected at the first meeting in January. EDA Minutes(Regular) November 26,2012 Page 6 Member Bartholomay mentioned if we sell the old senior center,he would like the proceeds to go to the EDA after the renovation bills are paid. This was the last EDA meeting for Member May. She felt we made progress this year and have some direction. The debt is gone so next year can start with a clean slate. Chair Larson mentioned Saturday was huge downtown with the basketball tournaments. It was the best the stores have seen. 11. ADJOURN MOTION by Bartholomay, second by May to adjourn at 8:10 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant of Z o) m o o 0 0 0 0 ❑ O O O O O O O O O O 0 co U N N N N N 0 0 0 0 0 0 N N I- I- I- I- I- ✓ a w Z Z Z Z a a a a a O O 0 0 0 W w w w w w ii w w 0 U 0 0 U C 2 2 o 0 0 0 0 0 n z z Z z z 'C 0 0 0 0 0 O a a a 0 a m = _ I I I CO CO W W 0 0 5 > U re c VWj CO 0 o J J n < < Ts z m O O ❑ U U U U) CO eL C W J W J I- = LLO Q LLO < 0 o o a' W X W J < 0_ J O- J W `m ex v eu a U) U al eh Z Z 0 co N O O O co N Z E cv 'I m m m m er - U O d' o 6 I 0 0 00 0 00 LL - N CO 0 N N N N U_ 0 IS O 'u I- CO N U Crl 0 U U F 0 F 0 2 > 2 ~ U 0 o z 0 O 00 o w w a 2 N U N 'r0V C 0 co 0 co Cu N v) O Lo Z U) N co M N o N O) N a M O in a u) e0 a 0 a z 1- c al Z W W Z Z z z I_ z O C7 m z z rn c 0 ❑ z Z Q ❑ z c LL� } ~ CO m O W J U W W J z Ce 2 d W CO W Y ~ J W m W 0. 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' w |k� ! _ | | f ! ! 8 JH it I |2 $ k § fi 111111 f �° HflhiiiIHuiiiJil l ! ■ I�ri || |■ ! z. 0 § §%§§%|§§ §k§k2s§§§§k§B%§(kk §§ HI Vim, ; koala o�FaRH City of Farmington 430 Third Street �' Farmington,Minnesota „_■i i 651.280.6800•Fax 651.280.6899 "'o"d` www.cifarmington.mn.us TO: EDA Members FROM: Lee Smick, AICP, CNU-A City Planner/Economic Development SUBJECT: Summary of 2012 Accomplishments—Tracking Sheet DATE: January 28, 2013 INTRODUCTION/DISCUSSION It's been a great year for advancing economic development initiatives in the community. The Economic Development Authority(EDA)has been productive in developing a variety of innovative and advanced economic ideas in 2012. The EDA has approved and promoted a number of objectives to support its desire for increasing the city's quality of life through economic development. The EDA approved the Economic Development Strategic Plan on February 27, 2012 after reviewing the plan for a number of months in 2011. Action steps were included in the plan from a list of four major priorities which included: Organizational Plan, Marketing, Business Retention and Expansion, and Business Recruitment. Under each of the priorities, action steps were established to meet the goals promoted in the priorities categories. In all,there were 74 action steps. The following activities were completed: 1. Completion of the Economic Development Strategic Plan 2012-2013 and Tracking Sheet 2. Revised EDA Mission and Vision Statements 3. Defined roles and duties of EDA and staff 4. Developed policy for"business friendly" approach at EDA meetings 5. Improved the regulatory environment for businesses 6. Streamlined business development review process by approving"Commercial/Industrial Development 30-Working Day Review Process" 7. Made website "user friendly" - efforts continue to date 8. Partnered with the FBA on a variety of issues 9. Provided Available Properties list on website 10. GROW Farmington—"Buy, Live, Local"Program 11. Business Retention&Expansion Program—48 Business Visits 12. Business Owner Satisfaction Survey 13. Establishment of a"Doing Business -Easy to Use Guide" for the application process 14. MCCD: "Open to Business"Program 15. Reviewed Business Incentives Program(i.e.,tax abatement, business assistance criteria 16. Reviewed surrounding communities' EDA budgets and incentives 17. Proposed Bank Summit for review of funding opportunities 18. Supported advertising of existing businesses at local tournaments ACTION REQUIRED Review 2012 summary and forward any comments to the new EDA on February 25, 2013. 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'°' t i c y O C .y 0 01 . a+ lc 7 0 N CO t'i uo ai 30 2c •c c m Yin rA m o. o 0 �• „O — 0 i m aQ, :C r ..v Z C C aZi •c E O o. a 07 00 a°-. 0 to 0 0 3 O v .N $ O > '0 a0. 1.3 N Y y 0 N N y 3 H U ` 0 0 w C 7 �n Y C U 0 yo O .° X. ill 'O C a ` m 0 `11 C • Q = O V .DC "E C U •C > 7 o 4-E c a 's , ° 00 3 ,� a ., m ., to = G t'i w p 01 ... ° "' °� 'o c a E M ar m C Q y U U c E > > a w ++ to -1'" 01 m 0 O U a. m 44C E O E •N A m ¢ O C o f a E s a 11- v•N @ .Q M N a .° 8 U A.Q U 7 'Q O) Cti co t7s Q.. il 4imHi4 City of Farmington 430 Third Street Farmington, Minnesota � 651.280.6800•Fax 651.280.6899 www.cilannington.mn.us TO: EDA Members FROM: Lee Smick, AICP, CNU-A City Planner SUBJECT: Business Visits 2012 Summary and Plan for 2013 DATE: January 28, 2013 INTRODUCTION/DISCUSSION Discussions for creating a Business Retention and Expansion(BR&E)program began on April 23, 2012 as shown in the attached memo. The program serves a number of key purposes including: to say"thank you" for locating their business in Farmington,to encourage business owners to expand their existing businesses, to help businesses gain awareness of the community's available resources,to provide opportunities to collaborate with business owners, to build opportunities for businesses to work with other businesses,to learn about the strengths and weaknesses of the business climate, and to learn about the business owners and thereby,to assist in marketing the businesses. The first business visits began on May 10, 2012. Since then a total of 48 business visits were performed in 2012. The program has been a success in terms of the City communicating interest in the businesses,the opportunity to provide assistance or promote successes, and an opportunity to say"thank you" for making Farmington"the choice"to locate in our community. Summation of comments occurring at Business Visits: • Appreciated visits from Farmington City Council (EDA). • Concern expressed about high commercial taxes in Farmington. • Some businesses have expanded or are contemplating expansion. • The FBA is important for the City. • Farmington needs business incentives for new and expanding businesses. • Businesses enjoy being in Farmington. • Some businesses—employees don't live in Farmington. • Industrial Park—when City is seal coating streets, notify businesses so they can seal coat their parking lot. • TIF program brought them to Farmington. • Business is picking up and busy. • Bids for work by City should stay in community to hire local businesses or material. • Business doesn't advertise—mostly word of mouth. • EDA should support cross-marketing of businesses or promote this in EDSP. • FBA should recognize Farmington Mall area more. • City does not contact businesses at all—been in existence for 10 years—never contacted. • Businesses want wayfinding signs. • EDA members suggested improvements to businesses (use windmill at Restwell for signage). The business visit summaries are also attached for review. Overall,the BR&E program was a success in its first year and provided excellent information to EDA members concerning businesses in the community. 2013 Schedule of Business Visits The BR&E program has been included in a program packet for review with the EDA on February 28, 2013. Business visits will begin in February 2013 at the FAA(see attached schedule). Dates shown on the schedule are noted by week at this time until staff can determine which days are most available. Locations are proposed awaiting approval of businesses; however,they should mostly remain consistent to the calendar throughout the year. EDA members will be asked for their participation at the EDA meeting prior to the first visit in the second and third weeks of the month. ACTION REQUIRED Review 2012 summation and forward any comments concerning business visits in 2013 to the new EDA on February 25, 2013. 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T'L-p O. .C >"~ a) O a O E c L = 6-@ 0- p N o N T.,, U m o E-C °•o. p N 0) C a •p Ic M ° N a L.L°-. a i c E N° 3 to w J U O ° a °: N Q o w N w N N C N .y-, C a) N,y 0.p N 33 p N �-w Z a rnw rn3 aU ° N m d ns p N 3 ai N NC y t . . .O 0 .° c'° (6.w O..w E N $ E V p 3 w t 0 a N 0 o N O o O ° O _ H a C D 00- c oc5. co E E d 0 m 0 m mo 8 ° O1 E " Z= p m c 2 Q E)5 0 A W L N"p w O w O as a 0 E N a7 N J F- c O LL N N C J a) E U p E: J W .. c U LL 2 o 2 Y N 0 a) CL N N N NN CO C N O O N CO Tr CO Ai kRif/4.,-, ;_ `• .',$'t' v, .:,.,, co ca) A � .0 0 G 0 I. �`� �A v APR City of Farmington Business Retention & Expansion Program 2013 DRAFT FARMINGTON BUSINESS RETENTION & EXPANSION PROGRAM Business Retention and Expansion Program In an effort to encourage the retention and expansion of existing businesses, many communities establish Business Retention and Expansion (BR&E) programs; hold Town Hall meetings, or meet with existing business owners at City Hall to learn about and assist those businesses. These programs are designed to demonstrate a community's appreciation for the businesses, and identify immediate needs, future plans, and opportunities for the community to deliver programs and services identified through a business survey process. Business Visits Business visits (or interviews) serve four general purposes: (1) introduces the EDA, Council and City staff, (2) provides information about available programs and services, (3) responds to specific requests, and (4) learns about business needs, plans, and attitudes of the community through an informal survey. A successful BR&E strategy serves the following key purposes: • To demonstrate to existing businesses that the community appreciates their contribution to the local economy. • To encourage expansion that leads to sustainable job growth. • To assist local businesses in gaining awareness of available resources. • To develop collaborative relationships for participating in comprehensive long-range retention and expansion activities. • To build the community capacity and cooperation to sustain growth and development activities. • To provide better information and understanding for all local leaders of the strengths and weaknesses of the business climate. • There is no better marketing strategy than the demonstration of a successful and thriving business climate. The Business Visit Program is as follows: Identify the Purpose of the Visit The EDA determines the purpose of the visit, the method of collecting data, the number of businesses to be visited, and the time frame within which the visits will take place. The attached schedule confirms the visits for the year. Establishing a Visitation Team The business visits are typically done as a three-person team. The team will include one EDA/Councilmember, one EDA Member, and one staff member. The team will question a business through the use of a survey (see attached). Training for Business Visits The business visit training will be addressed at the EDA meeting prior to the visit scheduled. The business visit should include the following: 1. An explanation of the purpose of the survey. 2. An explanation of the role of the BR&E team. 3. Discussion of team member duties. 4. Wearing of name tags at visit. Component 1. Purpose of the Survey The purpose of a business survey must be established before a visitation program is initiated. The purpose of the survey should guide the development of the questions proposed to the business, and a purpose statement should be included in the survey used in the visit. Three-person teams visiting businesses should be familiar with the purpose of the survey so that they both understand why they are conducting the survey and can explain the benefits of participating in the visit. The following are some typical purpose statements: • Demonstrate the community's appreciation for its existing businesses. • Identify immediate problems facing a business so that these problems can be addressed. • Identify perceptions of the community as a place to do business. • Identify the training and technical assistance needs of the business. • Identify the future plans of a business. • Build community capacity for sustained growth and development. Component 2. Role of the Interview Team Staff will take notes during the visit after they inform the owner that they will include their notes in a summation to the EDA members. The team is responsible for knowing the roles of the team and its purpose, understanding the answers provided by the business owners/operators, and identifying any potential areas of concern (called red flags) that should be addressed immediately by the EDA. Component 3. Review the Survey Instrument Business visitation training (at an EDA meeting) is not complete until the teams have been introduced to the survey instrument. The members of the team must understand the intent of each question and know how each question fits into the overall survey and helps to achieve one or more of the stated purposes of the survey. Familiarity with the survey's purpose, question types, and answer formats helps the interviewers to accurately administer the survey. A detailed review of the survey instrument in a group setting allows team members to ask their own questions and to learn from the questions of others about the content and intent of the survey. Component 4. Interviewing and Note-taking Techniques The background on the project and purpose of the survey should clearly and concisely identify that the survey is developed by the EDA, why the survey is being conducted (the purpose statement), the intended use of the survey results, how the data will be presented, and any guidelines for the survey respondent. The confidential nature of the process must be stressed. If the BR&E team will be scheduling the business interview directly with the business owner/operator, it is useful to prepare a script for use in the initial contact. It should be stressed that the script should serve as a guide for the conversation and should not be read verbatim. The script should contain a brief statement on the BR&E background. The confidential nature of the process should be included in the script, as well as any "rules" for conducting the interview. A common rule for interviews is called the "skip it" rule, which tells the business owner/operator that he may choose not to answer any question without providing a reason for non-response. This initial contact script can also be used again at the start of the formal interview process during the visit. There should be guidelines for the three- person team before the visit, during the visit, and after the visit, and individual guidelines for the interviewer and the note-taker. Conclusion Successful BR&E programs are the result of good preparation and cooperation. Following the approach outlined in this information will enhance the chances of a successful program in our community. CO W W 0 Z W H I- < CO 1""' C 0 a > U) L) V O CI) c6 C co '� 05 Cl) W U ca 0 `- W w E c . ca -2 m Z o 2' o = m 0 3 Z �. 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O 00 004 00E0OG) OOEo0Eo0 M 3 Y Y YY — YY YY YY YY YY a) _v -0 Y YY YY " a) a) ° a) a) •L a) a) >, a) a) C a) a) >. o a) a) o 0. a) a) 0 a) a) > a) a) 0 a) a) 0 a) a) tp a) o Q a) a) co a) o 0 a) a) 3 a) a) a) a) 0 o a) 0 a) a) 0 a) a) ai a) 0 c� � � � m � � a � � a � � 4 � � 4 .:x cnozo � � BR&E Survey Questions Staff—Take notes on responses you get from businesses at the visits. Here's a script to follow if Council Members don't explain the survey. "Thank you for meeting with us today. There are 3 purposes for meeting with you including(1) introduce EDA and City staff, (2) respond to specific requests, and(3) learn about your business needs,plans, and attitudes of the community. The answers you provide will remain confidential." 1. We are interested in learning about your primary products or services. 2. Who are your key competitors and where are they located? 3. How many employees work at your location? 4. Compared to last year is your business growing,declining, or staying the same? 5. How satisfied are you with the present location of your business? 6. What is your overall opinion of Farmington as a place to do business? 7. What are your top 3 reasons for locating or keeping your business in Farmington (i.e., access to airport, quality of living, , quality of housing, safety services, access to customers or suppliers, proximity to home,cost of doing business, workforce availability, access to business support such as printing-financial services)? 8. Please describe your immediate business needs or concerns that could be addressed by the City or other organizations (i.e, Dakota County Technical College)? 9. Are you planning on renovating or expanding your business? 10. Do you face constraints to renovating/expanding? 11. Are you currently considering proposing to close your business or relocate outside of the City and what is the reason? 12. Are there any questions you would like to ask us? "Thank you for taking your time to meet with us. Once again,the answers you provided will remain confidential." i � . io��1i�, City of Farmington a 430 Third Street Farmington,Minnesota 651.280.6800•Fax 651.280.6899 "rowfr wwwci.farmington.mn.us TO: EDA Members FROM: Lee Smick,AICP CNU-A City Planner/Economic Development SUBJECT: Business Attraction Plan DATE: January 28, 2013 INTRODUCTION The Business Attraction Plan has been created to attract new businesses to the City. The Plan includes actions that fall into the following areas: development of citywide support for economic development; data collection; marketing; directing interest to city businesses; revitalization of commercial districts;removal of barriers to economic development/process improvements; business attraction and retention; connection to and support of key business and employment districts; actions to increase revenues that fund city services; opportunities to leverage and network local,regional, state and federal partner agencies; and a discussion of a plan for the development of metrics to measure successful accomplishments of key economic development priorities. DISCUSSION The purpose of the Plan is to identify important methods of invigorating the City's economic base and provide actions that can be undertaken in a practical manner by the Business Attraction Team. This product is not an end, but a beginning, a path that will enhance the City's economic climate and engage the business community. It is designed to be a tool with specific actions that will stimulate the City's economy and communicate willingness on the part of the City to honor and grow the businesses that are already in Farmington and reach out through a positive business climate to businesses that are considering Farmington as a location for those businesses. It can only be brought to life through the engagement of policymakers,businesses, and staff. Organization of Business Attraction Plan The current EDA will review the Plan and provide comments at the January 28, 2013 EDA meeting and forward comments to the new EDA on February 25, 2013. On March 4, 2013, Farmington City Council will be asked to approve a resolution re-stating that Economic Development is a citywide priority and clear guidance and implementation is a part of this objective. In early March, staff will send out information on the website and via email inviting any business owners,residents, or interested persons to be a team member for the Business Attraction Plan in order to guide and implement business attraction in the City. At the February 25, 2013 EDA Meeting,the EDA will review the plan for additional comments or approval. Business Attraction Plan—Team Members After the EDA approval of the Business Attraction Plan on February 25, 2013, staff will prepare a public notice on the City's website requesting any business owner,resident, or interested person to join the Business Attraction Team in order to guide and implement business attraction in the City. Additionally, staff will include information about joining the team via emails to FBA members. Finally, EDA members will provide information to business owners while on business visits in March. The Team will be made up of 2-EDA Members, 2-business owners (preferably 1-FBA, 1-business owner), 1-ISD#192 School Board Member or Administrator, and potentially, Mark Loftus, Economic Development Director, Dakota Electric (took the place of LaDonna Boyd). Mr. Loftus would be very helpful due to his previous position at DEED in the economic development department. Laurie Crow, MCCD "Open to Business" and Dale Severson, Realtor for VRC will work as consultants to the team. Staff will be in attendance to record the meeting. Staff proposes a number of action steps in the plan including: 1. Development of Citywide Support for Economic Development. 2. Data Collection 3. Marketing 4. Direct Interest to City Businesses 5. Remove Barriers to Development/Process Improvements a. Outreach to Retail Businesses b. Outreach to Growth Targets c. General Tools to Assist Businesses 6. Connect and Support Key Business and Employment Districts 7. Leverage and Network with Key Local, Regional, State, and Federal Partners Tentative Timeline The tentative timeline is proposed below: DATE ACTIVITY OUTCOME January 28, 2013 Current EDA reviews Business Attraction Plan. January 30, 2013 Staff begins collecting data under Step 2 of plan. February 25, 2013 EDA reviews Resolution and forwards comments to City Council. March 4, 2013 City Council adopts Resolution for support of Economic Development in Farmington. March 5, 2013 Public Notice to businesses, interested parties requesting participation in Business Attraction Program and team. March 2013 Staff continues to collect data and research. March 25, 2013 EDA reviews applications and determines team. March 27, 2013 Business Attraction Team Meeting April 2013 Business Attraction team meets concerning Steps 3- 7 and prepares strategy. April 22, 2013 Business Attraction Team presents to EDA the status report concerning operations to date. May 2013 Business Attraction team meets concerning Steps 3- 7 and continues to work on strategy. May 28, 2013 Business Attraction Team presents to EDA the status report concerning operations to date. June 2013 Business Attraction team meets concerning Steps 3- 7 and continues to work on strategy. June 24, 2013 Business Attraction Team presents final plan for attracting new businesses requesting EDA to forward it to the City Council. July 1, 2013 City Council adopts plan and sets team into action. After initial set up,the Business Attraction Team will have three months to prepare a focus and implementation plan for attracting new businesses to Farmington. During those three months,the team will present its status at EDA meetings. A final plan of action will come before the EDA on June 24, 2013 for approval and forwarded to the City Council. Council will review the plan and adopt it if warranted. BUDGET IMPACT None ACTION REQUESTED Review the attached DRAFT Business Attraction Plan and forwarded it to the February 25, 2013 meeting of the EDA. Respectfully sub i Or/ Lee Smick, AICP CNU-A City Planner W wivl. Cal O Jf'' OA �� API- City of Farmington Business Attraction Plan 2013 DRAFT City of Farmington Business Attraction Plan MISSION To preserve and enhance Farmington's business climate to ensure the City is financially stable and partners with the community in its commitment to improve quality of life. VISION To provide services and resources to the business and development communities with the purpose of retaining, attracting and expanding business and employment opportunities for area residents, stimulating the local economy and expanding local retail sales, transient occupancy, and commercial property tax bases, while maintaining a positive balance between growth, social equity and the economic vitality of the City. VALUES To adhere to the sound fundamental principles of traditional economic development: business retention., by supporting and retaining established businesses; business attraction, by actively pursuing private investment and new business; business expansion, by nurturing both established and emerging companies; and, all supported by improved public.infrastructure vital to retaining, attracting and expanding business entities. Business Attraction The Business Attraction Plan includes utilizing a variety of tools, including incentives, redevelopment assistance and grant programs. Moving forward, the Economic Development Strategic Plan approved in February 2012 calls for the use of these types of tools in some form in addition to further developing new programs in an effort to develop a proactive business climate in Farmington. Specifically, these Business Attraction methods will now include improving broker relations, maintaining a vacancy inventory, and continually attracting commercial, service and industrial businesses to the community. Proactive Communication In Farmington's effort to be proactive in its business attraction methods, the Plan calls for increased communication with brokers, property owners and expanding businesses by the Business Attraction Team. Specifically, the Team will explore expanding businesses and match the right tenant for Farmington. The Team will also pursue desired businesses as identified in the Business Attraction Plan, and maintain positive broker relations. Lastly, the Team will assign staff to personally see to it that businesses receive first class service to help their business open — and succeed — in Farmington as quickly as possible. 2 Incentives When businesses consider calling Farmington their home, incentives are the tools the City needs to help attract companies. Incentives will be identified in the future by the Business Attraction Team. Marketing A vital component in implementing the Business Attraction Plan is to market the City to the business community, to our residents, and to future stakeholders. In this Plan, we call on the utilization of all mediums available to Farmington, whether that is on the Internet, in newspapers, or through the mail. While some aspects of the Business Attraction Plan are strategies that have been implemented in the past, others are innovative ways in which we believe will be instrumental to attracting and retaining businesses in Farmington. Online Marketing Strategy Farmington relies on the Internet as a key form of communication with residents. The Team will continue this trend by utilizing the City's website as the main line of communication with our business community. Possibilities for marketing strategies would be the implementation of an Online Business Resource Center providing one-stop processing where interested and existing business owners can find everything from city demographics, to the process to open a business, to identifying available leasing or for sale sites. In addition, there may be a My Farmington! Business Blog, which would provide ongoing updates of the new businesses coming to our community, and would share the positive news that some of our local businesses have received. Advertising, Flyers & Events Traditional marketing methods will also be utilized in an effort to attract new businesses, highlight Farmington, and promote existing businesses. The Team will do this by issuing flyers (City Brochure), hosting business workshops, broker receptions and real estate forums with bus tours. Business Attraction Plan Farmington will continue to grow and reinvent its economy by new businesses locating in the community. To attract businesses the City must have an environment that is conducive for businesses to locate here. The principal focus of the City's efforts should be to diversify the tax base, create a broad range of employment opportunities, and provide necessary goods and services for local residents to ensure the highest "quality of life" possible while promoting a positive image of the city in general, and its business environment in particular. The following steps will provide a roadmap to attracting businesses to Farmington. 3 Step 1: Development of Citywide Support for Economic Development Recommendations: • Engage in economic development actions that will provide desired outcomes that are critical to the success of this effort.To ensure that this is a citywide effort and has the visibility to carry out objectives two actions must be taken: 1. City Council and EDA should re-state its direction that economic development is a citywide priority, and establish clear guidance about the implementation of these objectives by adopting a resolution for this process. Timeline: February 25, 2013 —EDA March 4, 2013 - City Council adopts Resolution 2. Consider adding language to the resolution to signal this support such as: "Strategically support and attract businesses that contribute to the community through jobs, revenue and goods and services that enhance the quality of life for residents and workers". Timeline: February 25, 2013—EDA March 4, 2013 - City Council adopts Resolution • Create a high level team to respond quickly to important projects and inquiries under the GROW Farmington initiative. A public notice requesting applicants for the team will be included on the City's website, at business visits, and through emails to join the Business Attraction Team in order to guide and implement business attraction in the City. The Team makeup will include 2-EDA Members, 2- business owners (preferably 1-FBA, 1-business owner), 1-ISD#192 School Board Member or Administrator, and 1 additional community member. City staff will be in attendance to record the meetings. • Review focus,format, and style of team. Timeline: March 27, 2013—Meet with Team (Name is pending) • Team discusses and approves action steps of Economic Development Strategic Plan: 1. Create a business attraction team. a) Determine participants on team. b) Determine Mission and Vision of team. c) Identify desired business sectors. d) Compile information of interest to business prospects. e) Demonstrate Farmington as a profitable place to do business. 4 f) Determine workforce supply in region to ensure jobs to businesses. g) Determine if City can/should provide incentives to potential businesses. 2. Develop marketing initiative to attract targeted businesses and jobs. a) Determine whom to target for marketing. b) Contact brokers weekly. 3. Recruit business to serve other downtown businesses. a) Build a stronger downtown business community, retaining cash flow and the profitability of downtown businesses. b) As more goods and services needed by the residents are available,the community will be less inclined to travel to neighboring communities. Step 2: Data Collection Recommendations: • Staff will develop business market intelligence through the development of key indicators that: • Track business trends including business starts, business losses, company size, geographic location, etc. • Identify key sales tax generators and implement a business outreach strategy that provides market intelligence about key revenues and business trends • Use sales tax information to identify and track retail leakage and capture information. Benchmark this data and provide updates to staff and EDA • Track who stays and who goes in the City and then find out why • Continue and enhance information available to site selectors and developers. Identify who has the information and how to access it quickly. If the information is not available through the City easily, keep information on hand about who has this information to volunteer or purchase. (e.g., specific market demographics, market areas, etc.) like Nielsen Claritas and Buxton • Gather information from key sources such as the DEED, Greater MSP, CDA, MCCD 5 • Continue to track businesses by cluster and type to target business outreach efforts effectively (industrial, Retail, etc) • Identify, collect and track commercial vacancy information using information from brokers, city studies business owners, and other sources • Follow market information through news media to keep abreast of developments with local companies (e.g. business recognition, new businesses, key investments from venture capital and others). Timeline: April 2013 and Ongoing Step 3: Marketing Recommendations: • Brand the City and its positive business climate • -To business • -To customers • -To residents • -To site selectors • Expand the City's marketing and promotion efforts to increase the visibility of the downtown, business districts and the prime industrial areas. • Educate residents and community groups that quantifies business contributions (revenue generated from business that supports city services) and provide this information pro-actively to resident and community groups. • Consider events like a Quarterly Economic Forum to raise the visibility of the City's Economic Development function and provide a forum for information, trends and issues. • Market the City to residents and workers • Provide some "quick stats"about the City that tell the Farmington story(City Brochure). • Strengthen and Brand business districts • Provide training to merchants about signage, promotions, and displays • Direct customers to local businesses through additional business focused wayfinding signs (directions to shops, restaurants, places of interest). • Expand the use of banners to identify districts, events, etc. Consider master banner permits to allow groups (FBA) in specific business and employment districts to change banners regularly for events, seasonal banners, cultural events and other district specific information. • Facilitate the creation of district associations (North, South, West and Downtown—names pending) and support those associations that are in place. • Enhance the City's Website. Expand its user friendly approach by providing expanded information, online permits. Gear its approach to the customers seeking service and information (e.g., not by department, by function or service). • Market Events. • Continue to identify all events in the City. 6 • Look for opportunities to focus events on ongoing positive impacts to local businesses. Reach out to businesses to see how events can have the most positive impact on their businesses. Integrate Best Practices from other cities and organizations. Timeline: Ongoing (Team's determined focus and start date are pending) Step 4: Direct interest to City Businesses Recommendations: • Link local businesses to the City's website • Use the City's Website to highlight businesses • Provide at least two articles monthly to local media for publication about positive business information (openings, recognition, honors, special events, special interest)to layer the positive message that businesses enhance the City (Star Tribune, SunThisWeek newspaper, Farmington Independent, Kare 11 Sunday Mornings). • Assist local businesses in connecting with other Farmington businesses to offer co-marketing, co-branding,training opportunities, mentoring and other cooperative efforts (MCCD as well)to strengthen the business community. • Assist local businesses to market themselves by connecting them to determine where they can leverage individual resources (group ads,training events, marketing collateral, etc.) (MCCD). • Make downtown events "business focused': • Develop events that foster connection between business districts. • Continue to provide a `Buy Local"campaign to encourage resident and daytime population support of local business. Use utility bill inserts and other outreach? Timeline: Ongoing (Team's determined focus and start date are pending). Step 5: Remove Barriers to Development/Process Improvements Recommendations: Assist businesses/developers in early stage development through a four stage effort: • A predevelopment review team (Team members, City staff, MCCD, FBA, ISD #192) that is convened when a business is considering a project in Farmington is critical to assisting businesses to visualize obstacles and opportunities; identify important outreach and assess the costs of a project. • Elevate important "next stage"projects to a predevelopment review team that is made up of building inspections, licensing, planning, and engineering that can assist in identifying important concerns, and methods of dealing with concerns. • Identify a point person to shepherd these projects through ALL processes in the City. For ANY question, this person will navigate the city, other governmental 7 organizations (Dakota County CDA, DEED, Greater MSP, Dakota County) and help find answers to important questions. • Stay connected to the business/developer throughout the process and develop a point of contact for future communications as the company faces obstacles or expands (or contracts) its operations in the City. • Evaluate and address any infrastructure barriers to development. • Work closely with property owners, site selectors, developers, and others to identify any infrastructure (could include high speed intemet access, or the cost of tenant improvements) deficits that affect the City's competitiveness. • For existing businesses, maintain consistent contact to assess opportunities for growth (or contraction). • Consider short term office or"pop up"uses on the ground floor(Former Rambling River Center). • Consider overlay zones to facilitate improvements in key districts. For example, consider an entertainment zone overlay or other tool to empower techniques that invigorate districts, such as the Farmington Mall. (Lights, signage,tables and chairs and awnings at TH 3). • Master permits can be an important tool to decrease time, cost and process for customers (30-working Day Industrial/Commercial Development).They can also achieve equity and consistency for the City. • Integrate economic development goals into land use planning and communicate to private sector to enhance development opportunities. • Evaluate the cost of tenant improvements and other costs (water service hookups, parking in lieu fees) and explore ways to amortize and/or reduce costs to businesses). • Assign one building inspector for the duration of a project. • Assist in navigating City processes (Permit checklist, whom to call and "how to get your business started in Farmington). • When there is disruption (construction, etc.) reach out to businesses and inform them of work to be done. (They need to gauge staffing, impacts to lunch time business, etc.). • Work with fire department on inspection issues. Are challenges with inspections that have been identified by staff and customers a result of staffing, resources or other issues?Will cross training address the issue or is there another solution that will assist? • Develop cross training opportunities and provide any additional education needed to assist in facilitating not just regulating.This could apply to inspections, etc. Best practices can guide outcomes. (e.g., suggestion from fire department). • Foster a culture where a 30-working day window to review an application can mean "Staff moves this along on day one" instead of waiting until day 30 to look at it. 8 • Ensure that the City speaks with one voice, based on code requirements. There should not be several interpretations. Issues need to be worked out BEFORE talking to customers. • Encourage ED staff to understand the goals of other departments that are partners in economic development. Timeline: Ongoing to date Outreach to Retail Businesses • Identify sites for recruitment, retention and growth efforts. Use existing information and expand to include opportunity sites in the city. • Identify and engage a recruitment consultant with local experience that can market local properties in a manner consistent with city priorities. • Participate in retail recruitment efforts with local brokers, site selectors and participate in the Dakota County Regional Chamber events to facilitate the attraction of desired businesses to the City. Work with prospects through the site selection and entitlement process. • Team develops a downtown recruitment strategy(Doesn't need to be another"study".This is a simple plan of action that is strategic and prioritized). • Team develops a citywide recruitment strategy(Doesn't need to be another "study".This is a simple plan of action that is strategic and prioritized). Outreach to growth targets • Hotels 1. Zoning overlays 2. Identification of potential sites 3. Marketing of sites 4. Work with development community to attract additional hotels 5. Identify hotel products that support the City's goals including revenue generation, support the business community, and decrease trip generation. • Top 10 sales tax (including business to business) generators,transient occupancy generators, and top 10 employers. Develop an outreach program that targets these businesses for business outreach that provides market intelligence and an opportunity to assist these businesses with any issues or opportunities affecting their retention and/or growth. • One on one, small businesses. • Emerging industries and "new"tech companies. Consider working with a local developer or property owner to create an incubator for small growth oriented businesses in greentech, clean tech or high tech. 1. Check in with these companies as identified through outreach efforts. 2. Identify companies that applied for new clean energy manufacturing tax credits and target outreach to them. 9 3. Discuss with existing industrial owners what types of businesses they need in order to run their business or provide close proximity products. • Anchor tenants that provide the destination shopping that supports the development of infill retail and restaurant uses. • Grow businesses in place. • Brand that Farmington is "hometown", etc. • Put together a business toolkit for start up businesses • Consider contracting with a retail/business attraction expert with an understanding of the local market and culture (small business and larger format businesses). • Find ways to permit new tech and green tech businesses without reinventing the wheel. • Establish a communication plan with small businesses in Farmington. (Business visits) • Direct traffic when possible throughout city processes. If a business needs to deal with multiple agencies, make introductory phone calls, navigate agencies and help customers get what they need. • Identify opportunity sites (VRC) and act on them. • Focus on efforts that support business retention and expansion of Farmington companies,focusing on start-up companies. • Encourage small business growth and when appropriate, leverage businesses and local resources through grants and other funding. • Conduct quarterly work groups with industry leaders to identify and address ongoing issues. General Tools to assist businesses: 1. Business Fairs 2. Business Recognition Events 3. Employment Training Panel Funds (other workforce assistance) 4. Small Business Administration loan and training programs 704 programs 5. Façade Improvement Program 6. Beautification Program 7. Community Development Block Grant Program Funding 8. Business and/or Entrepreneurship Training Programs 9. Recognition at EDA and City Council meetings. Timeline: April 2013 (dependent on Team priorities) Step 6: Connect and Support Key Business and Employment Districts Recommendations: • Establish a point of contact in each business district, either through the business association for the district (FBA Member) or through individual outreach within the next 6 months. 10 • Work with existing business groups to identify and/or develop training that addresses training needs. • Hold a focus group in each district to identify issues, opportunities and guide outcomes that are consistent with city priorities (GROW Farmington). • Hold at least one group meeting facilitated by GROW Farmington to convene representatives (North, West, Downtown, Farmington Mall-TH 3)from each district to explore ways that they can co-market,cooperate and connect. • Heighten local awareness (business and residents) about districts. • Attract users to vacant space in the industrial and commercial areas by developing and implementing a proactive outreach program to developers, brokers and property owners. • Improve signage (directional and way finding)to shopping areas of City. • Be sure that any marketing efforts integrate findings to build on successes and create new opportunities for collaboration. • Ensure that all training opportunities identified, partnerships developed and resources identified are conveyed through communications with each group. Timeline: Ongoing (Team's determined focus and start date are pending). Step 7: Leverage and Network with Key Local, Regional, State and Federal Partners Leverage and Recommendations: • Facilitate the delivery of service to Farmington businesses through partnerships with local, regional, state and federal providers. Make this information available on the City's website and at City Hall. • City of Farmington 1. Collaborate outreach to residents and other community members to "tell the business story"to create a business climate that embraces new businesses. 2. Work with the MCCD and area bankers to determine opportunities to partner with Farmington. 3. Initiate joint business outreach visits. 4. Hold Town Hall meetings with Businesses. 5. Work together to expand the business education and information training available through local community colleges (DCTC) and others. 6. Explore the opportunity to work together on regular business recognition events.This could include a "fastest growing company", "best places to work", "contributions to the local community" and others. 7. Work together on developing marketing information that will enhance the City's image and attract desired firms to the City. • Dakota County Regional Chamber Take advantage of excellent economic data and regional events. 11 • Community Colleges, State Colleges and Universities and Private Educational Institutions to facilitate training opportunities, workforce training, collaborations with incubator and start up ventures and others to maximize opportunities for City residents and businesses. • Local high schools, elementary schools and other institutions -Work together and leverage talent and resources whenever possible to mentor students, share learning resources and connect residents and businesses. • State Resources - Work with DEED, Greater MSP, GROW Minnesota and others including Federal government partners. Step 8: Methodology to Measure Success A methodology to measure success will be crafted and staff will be supported to initiate implementation of the action plan. A check list of actions accomplished and a progress report will be provided to the EDA five months after the completion of this portion of the work. Case studies may be used to illustrate issues, programs and best practices. Timeline: June 24, 2013 - Approval at EDA Meeting July 1, 2013 - City Council adopts Plan DATE ACTIVITY OUTCOME January 28, 2013 Current EDA reviews Business Attraction Plan. January 30, 2013 Staff begins collecting data under Step 2 February 25, 2013 EDA reviews Resolution and forwards comments to City Council. March 4, 2013 City Council adopts Resolution for support of Economic Development March 5, 2013 Public Notice to businesses, interested parties requesting participation in Business Attraction Program and team. March 2013 Staff continues to collect data. March 25, 2013 EDA reviews Business Attraction Team applications and determines team. March 27, 2013 Business Attraction Team Meeting April 2013 Business Attraction team meets concerning Steps 3-7 and prepares strategy. April 22, 2013 Business Attraction Team presents report concerning operations to EDA. May 2013 Business Attraction team meets 12 concerning Steps 3-7 and continues to work on strategy. May 28, 2013 Business Attraction Team presents report concerning operations to EDA. June 2013 Business Attraction team meets concerning Steps 3-7 and continues to work on strategy. June 24, 2013 Business Attraction Team presents final plan for attracting new businesses requesting EDA to forward it to the City Council. July 1, 2013 City Council adopts plan and sets team into action. 13 c gc � ✓ �o``�`� i'��► City of Farmington 430 Third Street Farmington,Minnesota ieb n 651.280.6800•Fax 651.280.6899 " www.cilarmington.mn.us TO: EDA Members FROM: Lee Smick,AICP, CNU-A City Planner SUBJECT: Business Subsidy Policy DATE: January 28, 2013 INTRODUCTION Farmington currently has a Business Subsidy Policy in effect that was adopted by the HRA on December 13, 1999 and by the City Council on February 7, 2000. Revisions were made to it on November 4,2002 (Ex. A). Staff is proposing a new Business Subsidy Policy(Ex.B)and Tax Abatement Policy(Ex. C). In addition, staff is also providing an example of a Business Incentive Program(Ex. D)that would allow funding from the EDA budget for new or existing businesses locating or expanding within the City. It is similar to the CDBG's Business Development Grant, but it does not have CDBG funding of requirements attached to it because it would be generated from the EDA's fund. DISCUSSION Business Subsidy Policy The Minnesota State Legislature enacted the Business Subsidy Act(Minnesota Statutes, Section 116K.993-995). A business subsidy is a local government agency grant of personal property, real property, infrastructure,the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation or any preferential use of government facilities that are given to a business. Basically,the likelihood that a business subsidy will be granted increases if its proponent can demonstrate that the public purpose will be achieved if, and only if,the business subsidy is granted. Any business that is seeking to obtain a business subsidy should carefully articulate the public purpose to be achieved and then demonstrate how the project in question would achieve that public purpose. In accordance with the MN Business Subsidy Law,the City Council upon recommendation of the EDA, will consider using business subsidies to assist private development projects in an attempt to achieve one or more of the following public purpose objectives: to retain local jobs and/or increase the number and diversity of jobs; enhance and diversify the City's tax base; encourage additional unsubsidized private development in the area, either directly or indirectly, through"spin off'development; achieve development on sites that would not be developed without business subsidies assistance; remove blight and/or encourage development of commercial and industrial areas in the city that result in higher quality development or redevelopment and private investment; and offset increased costs of development of specific properties when the unique physical characteristics of the site may otherwise preclude private investment. Tax Abatement Policy The Tax Abatement Policy is the funding program under the Business Subsidy Policy that is provided by the City. Tax abatement is the ability to capture and use all or a portion of the local property tax revenues within a defined geographic area to assist with commercial or housing development. In practice, it is a rebate rather than an exemption from paying taxes. It allows each major taxing jurisdiction to choose to contribute its share of the taxes and limit abatement in any manner it determines appropriate. It can be used to retain business by abating existing taxes. In any one year,the TOTAL amount a political subdivision may abate may not exceed the greater of: 10% of its net tax capacity or$200,000; may not abate taxes on a parcel while it is located in a TIF district, abatements are special tax levies outside of levy limits, and the amount of the abatement must be added to total levy for the current year. Proposed Criteria for Tax Abatement Projects eligible for consideration of property tax abatement include but are not limited to the following: • Mixed use projects including new and redevelopment projects • Commercial and industrial redevelopment projects • Commercial and industrial new developments • Residential business properties (with some restrictions as defined in this policy) If a request for abatement includes redevelopment of residential property, consideration shall be given to the following: • Redevelopment of rental housing that is over 25 years old • Mixed use development that includes housing(must be owner occupied) • The case made for the overall public purpose/benefit • Justification for why the project cannot proceed without public assistance via tax abatement • Preserves or enhances the quality, aesthetics and management of workforce/ affordable housing in the community • Projects that are approved for abatement by another local taxing jurisdiction(i.e., Dakota County or a local school district) Proposed Procedure for Tax Abatement The procedure for reviewing of an application includes the following: 1. The City shall require a deposit in the amount of$ ($200?)from the applicant to investigate the feasibility of providing assistance to the applicant. Reimbursement is permissible under MN Statutes. 2. The applicant must submit the following forms and documentation at time of application for the application to be complete and review of the application to begin: • Request for Financial Assistance Form (Attachment A) • Fundability Guidelines for Financial Assistance Form (Attachment B) • Project Pro Forma Documentation(Developed by Applicant) 3. For the purposes of reviewing the proposal, the developer must provide any requested market, financial, environmental, or other data requested by the City or its consultants. 4. After recommendation of the EDA,the City Council must hold a public hearing on the tax abatement, after notice is published in the local newspaper. An agreement shall be approved that will specify the terms of the abatement. Business Incentive Program Staff is providing an example of a Business Incentive Program(Ex. D)that would allow funding from the EDA budget for new or existing businesses locating or expanding within the City. The following are requirements for applying for a business incentive: 1. The EDA and City Council will consider providing a business incentive to facilitate construction of a new building or the locating of a new(expanded?)business into commercial and industrial space within the City limits of Farmington,Minnesota for the public purpose of creating new jobs and employment opportunities in the community. In establishing this program,the City seeks to: • Increase the number of local jobs in the community. • Provide employment opportunities for Farmington residents. • Expand the municipal tax base. 2. This program is primarily targeted to small businesses and is envisioned to be undertaken on a pilot basis and will be subject to review by the Economic Development Authority and City Council. 3. Maximum funding amounts are determined based on evaluation of positive economic impact and the number of full-time or full-time equivalent jobs to be located(or retained?)within the City of Farmington. Funding amounts will range from$ ($1,000?)to a maximum$ ($7,500?)per business which is funded annually at $ ($25,000?). The EDA and City Council considers requests on a case by case basis in accordance with the guidelines which follow. 4. Eligible Businesses: • Must be a for profit business. •Must currently be located outside the Farmington city limits or starting up in Farmington as of , and will be starting business operations in the City. • Must be constructing,purchasing or leasing commercial or industrial space or land in Farmington. •Must be located in an area of Farmington that is currently not part of an existing tax increment finance district or abatement district. 5. Ineligible Projects: Business incentive assistance will not be provided to projects that: •Are not a for-profit business. •Are currently operating,under construction, or under contract by purchase agreement or lease agreement to locate to in the City of Farmington. •Are located in a current tax increment finance district or tax abatement district. • Place extraordinary demands on City services. • Continue and/or expand a nonconforming use. • Conflict with significant City redevelopment priority projects. • Have outstanding and/or unresolved City Code violations. •Are not in accordance with the appropriate City zoning and use requirements. • Involve business activities that are inconsistent with the EDA's goals, including, but not limited to, sexually oriented businesses,pawn shops,tattoo parlors, off sale liquor stores, tobacco shops, gun shops, check cashing businesses or those considered to create environmental problems due to the type of operation or processes involved in the business operation. 6. Application Procedure: A) Contact appropriate City staff to discuss the scope of the new projects. The request will be reviewed by City staff on a preliminary basis as to the conformity with the program guidelines and policies. B) If the project, in staff's judgment, appears‘to meet the program's objectives,the applicant may elect to file a formal application for a Business Incentive with the City and provide the required additional documentation. C) The application will be brought forward to the Economic Development Authority,to review the positive impact of the new(existing business?) and make a recommendation on the amount of incentive for the project($ ($1,000)to a maximum ($7,500) per business). D) Following the recommendation of the EDA,the application will be scheduled for the next applicable City Council meeting, at which time the City Council will make the final determination on whether a Business Incentive is appropriate and approve or deny the application and agreement. ACTION REQUIRED Staff is requesting that the current EDA review the information and suggest comments. The comments will be discussed at the February 20, 2013 and February 25, 2013 meetings. Respects ly s . ∎tte• Vii'/ Lee Smick, City Planner AICP, CNU-A gx CITY OF FARMINGTON, MINNESOTA Business Subsidy Policy SECTION 1. PURPOSE OF POLICY. The purpose of this Business Subsidy Policy(the "Policy") is to establish criteria by which the City of Farmington, Minnesota(the"City")may grant a business subsidy to a business (a"Business Subsidy"), as defined in Minnesota Statutes, Section 116J.993, subdivision 3. This policy sets forth the criteria to be considered by the City in awarding a Business Subsidy in compliance with Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Act"). The City may deviate from this Policy only by documenting in writing the reason for deviation and attaching a copy of such documentation to its annual report to the Department of Trade and Economic Development, as provided in the Act. SECTION 2. PUBLIC PURPOSES. A Business Subsidy granted hereunder must meet one or more of the following public purposes: A. To redevelop blighted or under-utilized areas of the City. B. To provide for or promote housing for persons and families of low and moderate incomes within the City. C. To provide for mixed-income housing developments within the city. D. To promote neighborhood stabilization and revitalization by the removal of blight and the upgrading in existing housing stock in residential areas of the City. E. To create additional job opportunities within the City. F. To retain local jobs in the City,where job loss is specific and demonstrable. G. To enhance the economic diversity of the City and to provide essential products and services within the City. A Business Subsidy shall not be granted hereunder merely because it is found that the granting of the Business Subsidy will result in an increase in the tax base of the City. SECTION 3. MANDATORY MINIMUM CRITERIA. Any project for which a Business Subsidy is granted by the City shall meet the following mandatory minimum criteria: A. Where the public purpose of a project is the creation of additional jobs in the City,the project receiving business assistance must create a minimum of 1 new full-time equivalent(FTE)job in the community, with a minimum wage of at least 125%of the prevailing federal minimum wage. B. Where the public purpose of a project is the retention of existing jobs in the City,the party requesting the Business Subsidy shall provide evidence that the loss of jobs in the City is imminent in the absence of the granting of the Business Subsidy. C. Any party requesting a Business Subsidy must be able to demonstrate successful general development capability, as well as specific capability in the type and size of development proposed. D. All project proposals shall, in the opinion of the City Council, optimize the private development potential of a site. E. The project must meet the"but for"test,meaning that but for the Business Subsidy requested, it would not be financially feasible for the project to proceed in the manner as proposed. F. The project must not generate significant environmental concerns in the opinion of local, state or federal governmental units. G. The project must be in accordance with the comprehensive plan, zoning, redevelopment plans, and policies of the City. SECTION 4. AWARD OF BUSINESS SUBSIDY. A project meeting the above criteria will not automatically be approved for a Business Subsidy. Meeting such criteria creates no contractual rights on the part of any party seeking a Business Subsidy. A Business Subsidy shall be provided within applicable state and local legal requirements. In granting a Business Subsidy, the City shall enter into an agreement with the recipient that provides the information,wage and job goals, commitment to provide necessary reporting data, recourse for failure to meet such goals, and other covenants, as required by the Act. mix' E3 (PROPOSED) BUSINESS SUBSIDY POLICY I. PURPOSE AND NEED FOR POLICY This policy provides the criteria for Tax Abatement. The business subsidy criteria included in this policy applies to all potential business subsidy recipients. In addition to this policy, every business subsidy will be subject to the requirements of Minnesota (MN) Statutes. II. POLICY A. Every business subsidy shall be subject to the requirements of MN Statutes governing business subsidies and every business subsidy shall be evaluated according to the criteria included in this Business Subsidy Policy, which shall apply to all potential recipients. Wherever the term business subsidy is used in this policy, its definition shall be that as defined in MN Statutes. B. A business subsidy must meet a public purpose. The City of Farmington (City Council) and Farmington Economic Development Authority (EDA) shall consider using business subsidies to assist private development projects in an attempt to achieve one or more of the following public purpose objectives: to retain local jobs and/or increase the number and diversity of jobs; enhance and diversify the City's tax base; encourage additional unsubsidized private development in the area, either directly or indirectly, through "spin off" development; achieve development on sites that would not be developed without business subsidies assistance; remove blight and/or encourage development of commercial and industrial areas in the city that result in higher quality development or redevelopment and private investment; and offset increased costs of development of specific properties when the unique physical characteristics of the site may otherwise preclude private investment. C. A business subsidy must result in wage increase or the creation or retention of jobs, which will pay at least 125-percent of the federally imposed minimum hourly wage, exclusive of benefits, with the wage goals specifically set forth in the business subsidy agreement. The wage goals will be determined as a weighted average on new jobs created as defined in the City of Farmington Fundability Guidelines for Financial Assistance Form. D. In lieu of job creation or retention, other measurable, specific, and tangible goals shall be established. Examples of tangible goals may include redevelopment, or pollution or soil remediation. E. If wage increase or job creation or retention is identified as the public purpose, goals must be established for wage increase or the number of jobs created; in cases where job loss is specific and demonstrable, goals must be established for number of jobs retained. As set forth in the business subsidy agreement, wage increase or job creation or retention (based on wage floor set forth in the agreement) shall be attained within two years of the benefit date. F. The business subsidy agreement must stipulate that the recipient will continue operations at the site where the subsidy is used for at least three years after the benefit date. 1/22/13 G. Any development agreement for public assistance as defined in MN Statutes shall contain, at a minimum, the following provisions: 1. Description of the subsidy including the amount and type of subsidy 2. Statement of public purposes for the subsidy in addition to tax base increase 3. Identification of measurable, specific, and tangible goals for the subsidy 4. Description of the financial obligation of the recipient if the goals are not met 5. Statement of why the subsidy is needed 6. Statement of commitment to continue operations for at least five years in the jurisdiction where the subsidy is used - the five year commitment may be waived if the grantor, after a public hearing, approves the recipient's request to move 7. Identification of the name and address of the parent corporation of the recipient 8. Identification of all financial assistance by all grantors for the project; and reporting requirements 9. Identification of specific wage floor for the wages to be paid, if job creation or retention is a goal, of at least the minimum set forth in Item C of this policy, and for at least two years after the benefit date or until the goals are met, whichever is later J. When granting a business subsidy, the City Council or the EDA may deviate from the criteria in this Policy by documenting in writing the reason for the deviation and filing that explanation with the Department of Employment and Economic Development along with the grantor's next annual report on business subsidies. The City Council and the EDA will not approve a deviation from these criteria unless the applicant provides a written request describing why the deviation is needed to permit the proposed project to proceed, and the grantor determines in its sole discretion that such deviation is reasonable and necessary. K. Each business subsidy agreement will require a recipient failing to meet the specified goals by the specified date to pay back the assistance plus interest, or at the request of the City Council and the EDA, to the account created under MN Statutes, Section 1161551. Any repayment shall be prorated to reflect partial fulfillment of goals. The interest rate shall be set at no less than the implicit deflator as defined by MN Statutes, Section 116J.994, Subdivision 6. The City Council, upon recommendation by the EDA, may after a public hearing, extend the period for meeting job and wage goals for up to one year. The City Council and the EDA may extend the period for meeting any other goals for any period specified by the City Council and the EDA, by documenting in writing the reason for the extension and filing that explanation with the Department of Employment and Economic Development along with the grantor's next annual report on business subsidies. L. The City Council and the EDA reserve the right to modify this Policy, from time to time in accordance with MN Statutes. M. The following supplemental policies are attached hereto and made part of the Business Subsidy Policy: - Attachment 1: Tax Abatement Policy III. PROCEDURE To the extent that a business subsidy requires tax abatement assistance, it must meet this Business Subsidy Policy and the Tax Abatement Policy. Any other business subsidy must meet this Business Subsidy Policy. 1/22/13 IV. RESPONSIBILITY AND AUTHORITY The responsibility and authority for the City Council or the EDA to adopt a Business Subsidy Policy is established by MN Statutes 116J.993-995, which sets requirements for subsidies allocated to businesses by state or local government agencies. Administrative implementation of this policy shall be the responsibility of the City Planner/Economic Development. Submitted by Reviewed by: This policy replaces the policy adopted by City Council Resolution No. on 1/22/13 tX. C-- (PROPOSED) TAX ABATEMENT POLICY I. PURPOSE AND NEED FOR POLICY This policy is to serve as a guideline for the use of tax abatement as a financing tool for projects within the City of Farmington. II. POLICY General Policy Background The City of Farmington City Council and Economic Development Authority recognize that local government plays a critical role in enhancing the vitality of our community. This is particularly true as the city reaches full development. It is the stated goal of the City Council and the EDA that all reasonable means shall be utilized to leverage private development and redevelopment in the city consistent with the policies described below and the City Council's Ends and Outcomes. Under Minnesota (MN) Statutes, the City Council is the governing body that must act to approve all tax abatement assistance. It is the policy of the City Council, that for most projects, the EDA shall be asked to make recommendation to the City Council regarding tax abatement assistance. The tax abatement tool provides the ability to capture and use all or a portion of the property tax revenues within a defined geographic area. In practice, it is a tax "rebate" rather than an exemption from paying property taxes. Tax abatement is an important economic development tool that when used appropriately can be useful to accomplish the city's development and redevelopment goals and objectives. Requests for tax abatement must serve to accomplish the city's targeted goals for development and redevelopment. These goals include, but are not limited to projects that will result in the creation or retention of a significant number of jobs that pay wages adequate to support households, projects that will assist with the retention and expansion of businesses, bring technology (fiber to the premise) as part of redevelopment and projects that will expand the city's tax base. Projects must meet the requirements established by the Business Subsidy Policy of the City Council and the EDA, to the extent it is applicable, in order to receive abatement. Projects Eligible for Tax Abatement Assistance Projects eligible for consideration of property tax abatement include but are not limited to the following: • Mixed use projects including new and redevelopment projects • Commercial and industrial redevelopment projects • Commercial and industrial new developments • Residential business properties (with some restrictions as defined in this policy) Tax Abatement Objectives A. A property tax abatement must meet at least one of the following public purposes: 1. Increase or preserve the tax base 2. Provide employment opportunities in the City of Farmington 3. Provide or help acquire or construct public facilities 4. Help redevelop or renew blighted areas 1/22/13 5. Help provide access to services for residents of Farmington 6. Finance or provide public infrastructure B. Projects that include fiber to the premise are deemed to be fulfilling an overall objective of the city to have sites with the best technology available. C. The developer/landowner shall be able to demonstrate a market demand for a proposed project. D. Tax abatement shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. E. Because it is not possible to anticipate every type of project, which may in its context and time present desirable community building, development, or redevelopment goals and objectives, the City of Farmington retains the right in its discretion to approve projects and tax abatements that may vary from the principles and criteria of this policy. Determination of Amount of Assistance Tax abatement assistance available shall generally be limited to the incremental taxes generated on the improvements to the property. The City Council and the EDA may consider a greater level of financial assistance, up to the maximum allowed under MN Statutes, in limited circumstances. The level of assistance will be evaluated on a case-by- case basis and may reflect an increase or decrease in requested financial assistance from the applicant. The amount of tax abatement assistance provided to an applicant shall be based on a review of the following: • Request for Financial Assistance Form (Attachment A) • Review of Applicants Pro Forma • Amount of Increment (Property Tax Revenue) Generated by the Project • Fundability Guidelines for Financial Assistance Form (Attachment B) In any year, the total amount of property taxes abated (citywide) may not exceed (1) ten percent of the - 10% of the net tax capacity for the taxes payable year to which the abatement applies, or (2) $200,000, whichever is greater, provided that these limitations are imposed by Minnesota Statues Section 469.1813, subd 8, and if such limitations are increased by any future legislation, the City may approve abatements up to the maximum amount permitted by law at the time the abatement is approved. The limit does not apply to an uncollected abatement from a prior year that is added to the abatement levy. The developer/landowner must adequately demonstrate, to the City's sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. The developer/landowner must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements and letters of credit. Forms of Assistance Tax abatement shall generally be provided on a "pay-as-you-go" basis wherein the City compensates the applicant for a predetermined amount for stated number of years. In 1/22/13 all cases, semi-annual abatement payments are based on available (as approved by agreement) tax revenue from the property and issued to the applicant after payment of property taxes by the applicant. Another form of assistance that shall be considered only in extraordinary circumstances is an "up-front payment" to the applicant. This may be in the form of a revenue or general obligation bond or an internal loan. (The City would consider revenue bond financing where the terms of the financing are satisfactory to the City.) The tax abatement generated from the applicant's project is a source of revenue for repayment of the bonds or loan. This form of assistance is not one the City will generally consider because under this form of assistance the taxpayers assume the risk that the tax increment will be sufficient for repayment of the bonds or the interfund loan. Duration and Restrictions A. The City may grant an abatement for a period no longer than 20 years, except as provided under (B). The City may specify in the abatement resolution a shorter duration. B. The City may not enter into a property tax abatement agreement that provides for abatement of taxes on a parcel, if the abatement will occur while the parcel is located in a tax increment financing district. C. Tax Abatement consideration for residential properties: If a request for abatement includes redevelopment of residential property, consideration shall be given to the following: • Redevelopment of rental housing that is over 25 years old • Mixed use development that includes housing (must be owner occupied) • The case made for the overall public purpose/benefit • Justification for why the project cannot proceed without public assistance via tax abatement • Preserves or enhances the quality, aesthetics and management of workforce/ affordable housing in the community • Projects that are approved for abatement by another local taxing jurisdiction (i.e., Dakota County or a local school district) III. PROCEDURE The City shall require a deposit in the amount of $ ($2,000?) from the applicant to investigate the feasibility of providing assistance to the applicant. If the City incurs additional expense beyond the $ prior to execution of the Developer's Agreement, the City shall notify the applicant in writing and the applicant must deposit additional funds for work on the application to continue. If the project is approved and the applicant proceeds with the project, the applicant's deposit may be reimbursed to the extent permissible under MN Statutes. The applicant must submit the following forms and documentation at time of application for the application to be complete and review of the application to begin: 1. Request for Financial Assistance Form (Attachment A) 2. Fundability Guidelines for Financial Assistance Form (Attachment B) 3. Project Pro Forma Documentation (Developed by Applicant) 1/22/13 For the purposes of underwriting the proposal, the developer must provide any requested market, financial, environmental, or other data requested by the City or its consultants. After recommendation of the EDA, the City Council must hold a public hearing on the tax abatement, after notice is published in the local newspaper. An agreement shall be approved that will specify the terms of the abatement. IV. APPENDICES The City and the Authority shall add Appendices to this Policy to provide targeted policy guidance concerning the use of tax abatement assistance for a targeted development or redevelopment purpose. An Appendix shall be added, modified, or deleted from time to time based on actions of the City Council and the EDA. V. ATTACHMENTS: FORMS The following forms are referenced in this policy and are included as attachments to this policy. A. Request for Financial Assistance Form B. Fundability Guidelines for Financial Assistance Form VI. RESPONSIBILITY AND AUTHORITY MN Statutes, Sections 469.1812 through 469.1815, authorizes a political subdivision to utilize property tax abatement on certain parcels of land within its boundaries. Administrative implementation of this policy shall be the responsibility of the City Manager. Submitted by: Reviewed by: This policy replaces the policy adopted by City Council Resolution No. on 1/22/13 ATTACHMENT A: CITY OF FARMINGTON REQUEST FOR FINANCIAL ASSISTANCE FORM REQUIRED INFORMATION 1. Provide a brief project description 2. Provide business information Business Name: Address: Telephone: Contact Name: 3. Provide brief description of the business 4. Provide information on the present ownership of the site Name: Address: Phone Number: Contact Name: 5. Provide information on the proposed project Building square footage: Size of property: Description of building: Materials and other additional relevant building information: 6. Provide total estimated project costs LandAcquisition $ SiteDevelopment $ BuildingCost $ Equipment $ Architectural & Engineering Fees $ Legal Fees $ Financing Costs $ Broker Costs $ Contingencies $ Other (please specify) $ Total $ 7. Describe amount and purpose for which tax abatement financing is required 8. State specific reasons why the use of tax abatement assistance is necessary for the project (the "but for" test) 9. List project costs that may be eligible for assistance. Costs that may be eligible for assistance include: 1/22/13 - Utilities Design - Site Related Permits - Architectural And Engineering Fees - Soils Correction Directly Attributable To Site Work - Earthwork/Excavation - Utilities (Sanitary Sewer, Storm Sewer and Water, fiber to the premise) - Landscaping - Parking Lot Paving and Parking Lot Lights - Streets And Roads - Sidewalks - Curb And Gutter - Special Assessments - Land Acquisition - Legal Costs Associated With Financing/Closing Attributable To Site - Legal Costs Associated With - Surveys Acquisition - Soil Tests And Environmental - City/Met Council SAC and WAC Studies Charges - Title Insurance - Application Deposit - Landscape Design 10.Provide market value information Current market value (from Dakota County Assessor): $ Proposed market value at completion: $ 11. Provide real estate property tax information Existing real estate taxes of property: $ Estimated real estate taxes of property upon completion: $ 12.Provide source of financing information Equity $ BankLoan $ Tax Abatement assistance $ Revenue Bonds $ Other $ Total $ 13. Provide name and address of architect, engineer, and general contractor for the project 14.Provide project construction schedule Estimated construction start date: Estimated construction completion date: If phased project: Year % Complete Year % Complete 1/22/13 15. Describe how the project will meet one or more of the following City Council and EDA goals (in addition to increasing tax base). Please provide measurable, specific, and tangible goals. Goals may include the following: increased wages; creation of jobs that pay wages adequate to support households; and/or job retention where job loss is specific and demonstrable; and/or development or redevelopment projects that are consistent with the City of Farmington's goals and objectives. 16. Provide a reference from another municipality (if applicable) 17.Provides names of any other municipalities wherein the applicant, or other corporations the applicant has been involved with, has completed developments within the last five years 18. Provide the following required supplemental information: - Project Pro Formas (one showing with assistance and one without assistance) - Legal description of the property - Application fee $ - Site plan and building rendering SUBJECTIVE ANALYSIS In addition to the required information from above (items 1-18), the following information is requested and will be considered as part of the application approval process: 20.Provide number of years in business 21.Provide number of years located in the City of Farmington (if applicable) 22. Describe potential for business growth or future development 23.Explain whether the building will be owner-occupied (Yes/No) 24.If rental space, provide the targeted retail rates 25.If building is non-owner occupied, explain whether the lessee will be required to capitalize this lease 26.Provide land costs per acre or square foot 27.Describe the location of proposed facility within Farmington 28. Describe the general quality of the development 29. Provide the size of parcel being developed 30.Provide the projected building cost per square foot 31.Additional comments 1/22/13 ATTACHMENT B: FUNDABILITY GUIDELINES FORM 1. Ratio of Public versus Private Investment $ Private Investment $ EDA/Public Investment $ Total Investment Ratio of public versus private investment Point Value Private Public +1 Less than $3 To $1 +2 Over $3 To $1 +3 Over $4 To $1 +4 Over $6 To $1 +5 Over $8 To $1 2. Number of Current and Estimated New Employees Point Value Number +1 1 - 15 +2 > 16 - 30 +3 > 31 -45 +4 > 46 - 75 +5 > 75 Plus *Current Number of Employees *Estimated New Employees (within next 2 - years) Total Number of Current and Estimated New Employees *Employees should be computed as full-time equivalent positions 3. Public Investment Per Current Employees Point Value Investment 0 $7,500+ +1 $6,000 - $7,500 +2 $4,500 - $6,000 +3 $3,000 - $4,500 +4 $1,500 - $3,000 +5 $ 0 - $1,500 Public Investment (Tax Abatement/Tax Increment) $ *Current Number of Employees $ Investment Per Employee = $ *Employees should be computed as full-time equivalent positions 1/22/13 4. Pay Level of Jobs Created Point Pay Dollar Total Weighted Value Range Weighting Employees Dollar Amount 0 $0 - 14,999 $10,000 $ +1 $15,000 - 24,999 $20,000 $ +2 $25,000 - 29,999 $27,500 $ +3 $30,000 - 44,999 $37,500 $ +4 $45,000 - 59,999 $52,000 $ +5 $60,000 and Over $60,000 $ *TOTAL $ WEIGHTED AVERAGE = $ *Employees should be computed as full-time equivalent positions. New Employees over and above the number required to be added shall be exempt from this section. 5. Real Estate/Property Taxes Generated Point Value *Projected Tax Revenues + 1 Below $25,000 +2 $ 25,000 - $49,999 +3 $ 50,000 - $99,999 +4 $100,000 - $249,999 +5 $250,000 and Over Projected Tax Revenues $ *Projected Tax Revenues should be based on the existing property tax system and rates plus legislative future changes if subject to estimation. 6. Service Impact Point Value Type of Development +1 Retail +2 Office Warehouse +3 Office +4 Mixed Use +5 Hi-Tech/Manufacturing +2 Installation of fiber to the premise Type of Use 7. Redevelopment Age Multiplier Point Value Age of Building 1.0 New Development 1.0 0 - 5 Years Redevelopment* 1.1 6 - 10 Years Redevelopment* 1.2 11 - 15 Years Redevelopment* 1.3 16 - 20 Years Redevelopment* 1.4 21 - 25 Years Redevelopment* 1.5 26+ Years Redevelopment* * Redevelopment is defined as the development of a property again to a better condition. 1/22/13 8. Significant Impact Multiplier Point Value Type of Use 3.0 Mixed Use New Development or Redevelopment 2.5 Commercial/Industrial Redevelopment 2.0 Industrial New Development 1.5 Commercial New Development WORKSHEET SUMMARY Worksheet Breakdown Total Points 1. Ratio of Public versus Private Investment (1 to 5) 2. Number of Current and Estimated New Employees (1 to 5) 3. Public Investment per Current Employee (0 to 5) 4. Pay Level of Positions (0 to 5) 5. Real Estate/Property Taxes Generated (1 to 5) 6. Service Impact (0 to 5) SUBTOTAL Multiplier's 7. Redevelopment Age Multiplier (1.0 to 1.5) 8. Significant Impact Multiplier (1.5 to 3.0) TOTAL SCORE * To determine the total score multiply the Subtotal x Redevelopment Age Multiplier x Service Impact Multiplier. The information provided herein is true and accurate to the best of my knowledge: (Signature) (Date) 1/22/13 Fundability Rating for Tax Abatement The total score on the project analysis sheet on previous page determines the general term of assistance. The City Council and EDA will make any final decision on term. Point Value Term of Assistance* 0 - 25 O Years 26 - 35 3 Years 36 - 45 5 Years 46 - 59 7 Years **60 and over 10 Years * Assistance amount will be the incremental taxes only. ** The City Council and EDA may consider between 15 - 20 years for projects that score 60 and over. 1/22/13 CITY OF FARMINGTON Economic Development Authority - Business Incentive Program (PROPOSED) Program Purpose: To attract new(existing?)businesses to Farmington whose local operations will do the most to expand the City's economy and job base. How the Program Works: The program uses a two-tiered evaluation process to: first determine eligibility for incentive financing; and second,to determine the amount of program funds for which a business may be eligible. The maximum amount of funding for this program is $ , and will be provided through the Economic Development Authority Business Incentive Fund,which is specifically reserved for economic development activities. Objectives: The EDA and City Council will consider providing a business incentive to facilitate the locating of a new(expanded?)business into commercial and industrial space within the City limits of Farmington, Minnesota, and for the public purpose of creating new jobs and employment opportunities in the community. In establishing this program, the City seeks to: • Increase the number of local jobs in the community. • Provide employment opportunities for Farmington residents. • Expand the municipal tax base. This program is primarily targeted to small businesses and is envisioned to be undertaken on a pilot basis and will be subject to review by the Economic Development Authority and City Council. Amount Available: Maximum funding amounts are determined based on evaluation of positive economic impact and the number of full-time or full-time equivalent jobs to be located(or retained?)within the City of Farmington. Funding amounts will range from ($1,000)to a maximum ($7,500)per business which is funded annually at $25,000. The EDA and City Council considers requests on a case by case basis in accordance with the guidelines which follow. Eligible Businesses: • Must be a for profit business. • Must currently be located outside the Farmington city limits or starting up in Farmington as of , and will be starting business operations in the City. • Must be constructing,purchasing or leasing commercial or industrial space or land in Farmington. • Must be located in an area of Farmington that is currently not part of an existing tax increment finance district or abatement district. 1 Eligible Project Costs: The applicant is asked to specify what business related expenses the incentive will be used for in the application materials and provide documentation that the funding was used for the identified purpose. Ineligible Projects: Business incentive assistance will not be provided to projects that: • Are not a for-profit business. • Are currently operating,under construction, or under contract by purchase agreement or lease agreement to locate to in the City of Farmington. • Are located in a current tax increment finance district or tax abatement district. • Are currently located and operating in the City of Farmington. • Place extraordinary demands on City services. • Continue and/or expand a nonconforming uses. • Conflict with significant City redevelopment priority projects. • Have outstanding and/or unresolved City Code violations. • Are not in accordance with the appropriate City zoning and use requirements. • Involve business activities that are inconsistent with the EDA's goals, including,but not limited to, sexually oriented businesses,pawn shops,tattoo parlors, off sale liquor stores, tobacco shops, gun shops, check cashing businesses or those considered to create environmental problems due to the type of operation or processes involved in the business operation. Desired Qualifications: Preference will be given to projects that: • Provide significant new employment opportunities in the City of Farmington,with an emphasis on quality wages and benefits. • Are in accordance with the highest and best use of the property. • Reduce demands on City services (i.e. Public Safety). • Fill an unmet market need. • Are providing significant investment into the commercial or industrial space in the city. Application Procedure: 1. Contact appropriate City staff to discuss the scope of the new projects. The request will be reviewed by City staff on a preliminary basis as to the conformity with the program guidelines and policies. 2. If the project, in staff's judgment, appears to meet the program's objectives,the applicant may elect to file a formal application for a Business Incentive with the City and provide the required additional documentation. 3. The application will be brought forward to the Economic Development Authority,to review the positive impact of the new(existing business?) and make a recommendation on the amount of incentive for the project($ ($1,000)to a maximum ($7,500) per business). 4. Following the recommendation of the EDA,the application will be scheduled for the next applicable City Council meeting, at which time the City Council will make the final determination on whether a Business Incentive is appropriate and approve or deny the application and agreement. 2 Approval Process: The City Economic Development Authority will review applications and make a recommendation to the City Council for their consideration. The Farmington City Council will have the final authority of whether to approve an application. Disbursement: • Payment of the approved incentive will be calculated by City staff upon verification of payment of the business's property taxes (land and improvements), and the business providing verification that employment numbers were created. • The calculation will be based upon the taxes actually paid by the business, according to County tax records, or if a lessee,upon the property tax figure delineated in the signed lease agreement between the property owner and the business (if less than the actual property taxes). • The business incentive will be paid out as funds are available. . • Funds will be disbursed to the business upon verification of creation and maintaining job levels during the time frame as agreed to by the business and City Council. Reauthorization: The Business Incentive Program is envisioned as a pilot and will commence for two years after Council approval and will be reviewed by the EDA and City Council if all the funding has been expended or the end date has been reached. No additional funds will be spent without City Council reauthorization. 3 Farmington Business Incentive Program Application Applicant Information Name Address City State Zip Phone Number Fax Number Name of Principle in Contact Email Address Type of Business/Date Established Tax ID Number Project Information Business Name New Farmington Street Address Prior Street Address City State Zip * Note: This program is only available to businesses locating to Farmington that are not currently under a tax increment finance district or abatement district. 4 City of Farmington, MN Business Incentive Program Application* Background Information Please describe how this program will help your business? When was your company established? If you are not the original owner,when did you gain control of your business? What products or services to you sell? Please explain why the assistance is necessary to locate or build in Farmington? How will moving into Farmington affect your business? Please describe any other economic/social impacts this project is likely to have on the community? 5 Employment Information How many full-time equivalent positions (FTE's) and part-time positions do you currently employ at your business? If a start up business,how many FTE's or part time positions do you plan to employ? Current FTEs Current Part-time: Start Up: Anticipated FTE: Anticipated Part-time: Do you plan to add any new additional FTE's at your new location in Farmington, if so, how many? FTE: Part-time: What is the wage level for FTE's and any part time employment? FTE: Part-time: PLEASE COMPLETE THE APPLICATION AND PROVIDE THE FOLLOWING FOR PROGRAM VERIFICATION 1. A copy of the existing or proposed purchase agreement or lease agreement in Farmington. 2. Documentation verifying for-profit business. 3. Evidence of previous location outside of Farmington or recent start up documentation. 4. Evidence of employment information for your business including verification of full time jobs. 5. If applicable, employment and lease verification upon the terms of the business assistance agreement. 6. General information on why the subsidy is needed. I certify that the statements contained in this information and information provided is true and complete to the best of my knowledge and behalf. Applicant's Signature Date Please return to Lee Smick, City of Farmington. 430 Third Street, Farmington, MN 55024 For more information,please call (651)280-6820 or lsmick @ci.farmington.mn.us 6 �av 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,AICP,CNU-A City Planner SUBJECT: Bank Summit Date and Information DATE: January 28,2013 INTRODUCTION/DISCUSSION On October 22,2012,the EDA discussed the possibility of holding a"Bank Summit"for area Banks to discuss types of business incentives offered in other communities in the metro. Staff is proposing to hold the Bank Summit on March 20,2013 at City Hall at 2:00 PM or 6:00 PM. Banks invited include: Anchor Bank-Farmington, Castle Rock Bank,Premier Bank,and Roundbank. The list of types of incentives includes the following: 1. Tax Increment Financing 2. Tax Abatement 3. Commercial Rehabilitation 4. Hastings Industrial Park Land Credit Program 5. Gap Rehab Loan Program 6. Commercial Matching Rehab Loan 7. Facade Improvement Loan Program 8. Revolving Loan Funds 9. Business Subsidy Program 10. Development Assistance 11. Entrepreneurial Fund 12. Commercial Incentives/Waiver of Fees 13. Minnesota Investment Fund 14. Small Business Development Loan Program The"Open to Business"advisor,Laurie Crow,will also be in attendance to discuss the financing available through the MCCD. This will open up discussions between the banks and Ms. Crow to possibly work together on financing programs. ACTION REQUIRED Information only. Respectfully ,mi ed, dry Lee Smick,City Planner AICP, CNU-A 40+RMi,A City of Farmington ' 430 Third Street Farmington,Minnesota 1 651.280.6800•Fax 651.280.6899 -r•Aeaoo. , www.ci.farmington.mn.us TO: EDA Members FROM: Tony Wippler,Assistant City Planner SUBJECT: Triton Properties,LLC—Commercial Rehab Grant Application DATE: January 28,2013 INTRODUCTION Staff has received an application from Triton Properties,LLC for a Commercial Rehabilitation Grant. The applicant is requesting funding assistance for the removal of underground petroleum storage tanks at the property located at 705 8th Street(formally Oasis Market). DISCUSSION Sajid Haque of Triton Properties,LLC has purchased and will be renovating the property at 705 8th Street from what is currently a vacant gas station to a retail/office space. The property has been vacant for several years and has been neglected. It is a code requirement that the three(3)existing underground petroleum storage tanks be removed with the proposed change of use,as they have been out of service for longer than a year. The Commercial Rehabilitation Grant Program is a program that provides assistance to property owners that make eligible improvements to commercial properties to prevent deterioration of structures,and encourages projects that correct code violations. Staff believes that the work identified in the application appears to meet the requirements of the grant program as the removal of the unused tanks will eliminate specific conditions that are detrimental to public health and safety by correcting a code violation. According to the grant application,the estimated cost of the work involved with the tank(s)removal is$15,000. A 1:1 dollar match would be required by the applicant if the EDA and Council agree to award the grant to Mr.Haque. If the tank(s)removal project is deemed eligible,the maximum grant award,based on the estimated project costs,would total$7,500. There is currently$22,377.50 (FY 2010)allocated in the Commercial Rehabilitation CDBG fund which is adequate to award this application. ACTION REQUESTED Authorize the award of a City of Farmington Commercial Rehabilitation Grant in the amount up to$7,500 to Triton Properties,LLC subject to the following contingencies: 1. Receipt of all required supporting documentation per grant program requirements. 2. The preparation and execution of a grant agreement. 3. The completion of the Slum&Blight for Spot Basis National Objective Form establishing that the improvements identified will eliminate specific conditions that are detrimental to public health and safety. 4. Approval by the Dakota County Community Development Agency(CDA). 5. Applicant and its contractors adhere to provisions regarding federally funded contracts(i.e.,Davis Bacon Act). Respectfully submitted, Tony W pier,A stant City lanner Cc: Sajid Haque,Triton Properties Commercial Rehabilitation Grant Program ©�I /��' Grant Application JAN 1'i 2013 I APPLICANT INFORMATION DOp49T,A VRpy&�6�~ efreq NAME OF APPLICANT(S) 1/0/7;4.1-a h ?ro .e�� s c ADDRESS 7d� Ski/— CITY, STATE,ZIP �� 53-0 2_9 PHONE I Z --_c99r--ef / Z SOCIAL SECURITY# (Tr— BUSINESS INFORMATION LEGAL NAME OF BUSINESS T r �R� �� G ADDRESS 705 5ke-e-F 9- CITY, STATE,ZIP vri /` /A" S� a--2— y� BUSINESS PHONE Cf2-_ef5"-- FAX g t3z — -7.371 FEDERAL TAX ID# l e)'d'3,C 2 DATE ESTABLISHED Z1-2-".,7-4) 2 SOLE PROPRIETORSHIP CORPORATION `I e PARTNERSHIP CONTRACT FOR DEED ij / MORTGAGE PRINCIPAL /1/4/ /14 LESSEE /tI (, TERMS OF LEASE i"/ OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE: NAME " D v>✓ INTEREST Ib a /' A/ /set NAME N / INTEREST NAME A' / INTEREST N/ PROPERTY INFORMATION ESTIMATED DATE OF BUILDING CONSTRUCTION OS" - ESTIMATED CURRENT TAX MARKET VALUE NUMBER OF STORIES NUMBER OF BUSINESSES N/ !� NUMBER OF BUILDINGS NUMBER OF APARTMENTS • 0 HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? //+ PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: 122'44o"r Al " � S,u �1 sp -raf/ 4 r ovc cle Ci 4 � J ESTIMATED PROJECT COSTS Improvements eligible for grant funding eliminate specific conditions detrimental to public health and safety. EXTERIOR/FACADE ESTIMATED COST INTERIOR ESTIMATED COST ELECTRICAL ESTIMATED COST PLUMBING ESTIMATED COST MECHANICAL /►I / /""l es"— I ESTIMATED COST 15-7 4 FIRE SUPPRESSION ESTIMATED COST TOTAL ESTIMATED COST / ® D FUNDING INFORMATION A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Commercial Rehab grant program, the applicant must contribute one dollar. The amount of grant to be awarded shall be$5,000 or greater,but not to exceed$35,000. TOTAL GRANT AMOUNT REQUESTED $ / O o APPLICANT FUNDS $ /e2 " ADDITIONAL SOURCES OF FUNDING $ ," NAME OF FINANCIAL INSTITUTION /V / A ADDRESS CITY, STATE, ZIP r CONTACT PERSON /` PHONE# REQUIRED ATTACHMENTS 1. Financial statements- Provide balance sheets and income statements for the past two years 2. Personal financial statements of all principals 3. Current satisfactory credit report of owners/partners 4. Corporate resolution (if applicable) 5. Completed W-9 form 6. Most current property tax statement 7. Letter from the county clerk/treasurer verifying that there are no outstanding judgments or tax liens against the property - I/We declare that the information provided on this application and the accompanying attachments is true and complete to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification and that the City of Farmington has the right to verify this information. I/We agree to provide the project coordinator reasonable access to information and reasonable access to the construction project site so that they may monitor project implementation. APPLICANT(S) DATE 6 f/ /3 13 DATE • DATE ' MINNESOTA DATA PRACTICES ACT TENNESSEN WARNING In accordance with the State of Minnesota Government Data Practices Act,the City of Farmington is required to inform you of your rights as they pertain to the confidential information collected from you. Confidential data is that information which is not available to you or the public. The personal information we collect about you is private. The information collected from you and from other agencies or individuals is used to determine the disposition of your application with the City. The dissemination and use of the data collected is limited to that necessary for the administration and management of the Business Reinvestment Loan Program. Persons or agencies with whom this information maybe shared,include: 1. City of Farmington personnel administering the grant program. 2. The Dakota County Community Development Agency. 3. City Council Members,Economic Development Authority Members 4. Contracted private auditors. 5. Law enforcement personnel. 6. Those individuals or agencies to whom you give your express written permission. NOTICE PURSUANT TO MS.60A.955 • • 4$ Property Tax Statement Page 1 of 1 Dakota County Treasurer-Auditor Taxpayer copy 1590 Highway 55 Hastings MN 55033 Save this copy for future reference. , 651-438-4576 Fax 651-438-4399 2012 Property Tax Statement www.dakotacounty.us PROPERTY ID: 14-03200-55-011 Tax Description: SECTION 32 TWN 114 RANGE 19 32 114 19 S 265 FT OF N 1050 FT OF W TAXPAYER: OP2C FARMINGTON LLC Payable 2011 Payable 2012 11455 VIKING DR STE 350 Estimated Market Value: 508,800 492,800 EDEN PRAIRIE MN 55344 Improvements Excluded: 0 0 Homestead Exclusion: 0 Taxable Market Value: 508,800 492,800 New Improvements: 0 0 Property Class: COMMERL PREF COMMERL PREF 1. Use this amount on Form M1 PR to see if you're eligible for a property tax $0.00 refund. File by August 15. If this box is checked,you owe delinquent taxes and are not eligible. 2. Use this amount for the special property tax refund on schedule 1 on Form M1 PR. $0.00 Property Tax and Credits 3. Property taxes before credits $18,250.18 $18,963.32 4. Credits that reduce property taxes A.Agricultural Market Value Credits $0.00 $0.00 B.Other Credits $0.00 $0.00 5. Property taxes after credits $18,250.18 $18,963.32 Property Tax by Jurisdiction 6. County: A. Dakota County Levy $1,669.80 $1,740.50 B. Regional Transit Rail $22.30 $22.22 7. City or Town: FARMINGTON $3,193.50 $3,495.36 8. State General Tax $4,622.80 $4,653.18 9. School District: 192 A. Voter Approved Levies $3,030.02 $3,043.16 B. Other Local Levies $698.48 $710.20 10. Special Taxing Districts A. Metropolitan Special Taxing Districts $75.78 $84.28 B. Other Special Taxing Districts $130.24 $125.50 C. Tax Increment $0.00 $0.00 D. Fiscal Disparity $4,779.94 $5,061.76 11. Non-school voter approved referenda levies $27.32 $27.16 12. Total property tax before special assessments $18,250.18 $18,963.32 (Total) 13. Special Assessments $1,137.62 Principal: $1,583.76 Interest: $0.00 14. Your Total Property Tax and Special Assessments $19,387.80 $20,547.08 Do not use this statement for tax payments.Use link below. First half tax: $10,273.54 View tax payment stub and payment information, Second half tax: $10,273.54 http://services.co.dakota.mn.us/PropertyInformationOnline/TaxStatement.aspx?Id=140320... 1/15/2013 Qc� C A v.) W ,1/4 0 4 a 4er• A PRS1M���'��� City of Farmington Community Development Block Grant Commercial Rehabilitation Grant Program City of Farmington Community Development Block Grant Commercial Rehabilitation Grant Program The City of Farmington has received funding from the Dakota County Community Development Agency(CDA)in the form of Community Development Block Grant (CDBG)funds. These funds will aid the City in supporting local businesses by assisting with financing for projects that upgrade existing commercial buildings within the community. The Dakota County CDA distributes the funds on behalf of the Federal Department of Housing and Urban Development(HUD). Projects that receive CDBG are subject to HUD requirements. The following policies and procedures have been developed for projects undertaken with CDBG dollars in the City of Farmington. These policies are subject to change as recommended by the Dakota County CDA and/or the Federal Department of HUD. Program Purpose To provide financial assistance to property owners who are making eligible improvements to eligible commercial properties within the City of Farmington. Type of Assistance CDBG Grant funding. Grant Terms&Requirements No more than one grant may be granted per property or per applicant during a funding year which currently runs from July 1st until June 30th. A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Commercial Rehabilitation Grant Program, the applicant must contribute one dollar. The amount of grants to be awarded shall be $5,000 or greater,but not to exceed$35,000. Program Objectives a. To prevent deterioration of commercial properties and discourage blight; b. Encouraging projects that correct code violations and eliminate accessibility restrictions to the extent necessary to eliminate specific conditions detrimental to public health and safety; c. To help maintain and expand the variety of options for business uses in existing commercial space within the City. 09/19/2011 1 Eligible Recipients 1. The property must be located within a commercially zoned district or a district that has a commercial component. This would include the following zoning districts: B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use and R-T. 2. All individuals having an ownership interest in such structure or an interest as purchaser in a contract for deed must join in the application and sign the grant agreement with the City, including the contract holder. 3. Leaseholders are eligible to make application for CDBG funds. The Farmington Economic Development Authority and City Council, on a case- by-case basis,will review such applications to determine their eligibility for funding,based on the length of the lease on the property and length of time the business has operated in Farmington. The property owner must join in the application and comply with Program requirements. 4. Projects that would result in permanent displacement of either residential or business tenants will not be financed with CDBG program funds. Any temporary displacement of tenants resulting from project activities shall be the responsibility of the property owner. Tenants shall be fully informed of the project plans, and the expected impact on them, and shall receive a Notice of Nondisplacement or Displacement, as appropriate, prior to the start of rehabilitation. Property owners will be required to provide relocation assistance to tenants as required under the Uniform Relocation and Real Property Acquisition Policies Act of 1970. 5. No member of the governing body of the locality, or official, employee, or agent of the local government who exercises policy, decision-making function or responsibilities,including members of the Economic Development Authority(EDA),Planning Commission and Farmington City Council, in connection with the planning and implementation of the Commercial Rehabilitation Grant Program shall directly or indirectly benefit from this program. This prohibition shall continue for one(1)year after an individual's relationship with the local government ends. Any potential conflicts of interest under Minnesota Statues 412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570,Uniform Administration Requirements, shall be evaluated on the basis of a legal opinion to be requested from the Farmington City Attorney. 6. Ineligible project costs include but are not limited to interior remodeling improvements, furniture, financing fees,business or operating costs, equipment,removable fixtures and building acquisition costs. Costs incurred prior to the application date are not eligible for program funding. 7. Eligible projects must comply with Federal Anti-Pirating Regulations. Any assisted business relocating to the City of Farmington must not relocate more than twenty-five jobs from any other labor market area or 0.01%of jobs in the Labor Market Area,unless forced to relocate by an action under the Uniform Relocation Act. Farmington is part of the Minneapolis-St. Paul Metropolitan Statistical Area Labor Market Area. 09/19/2011 2 Program Definitions Program Administrator The Program Administrator shall be the Dakota County CDA, 1228 Town Centre Drive, Eagan,MN 55123,Phone(651)675-4400. Staff shall work with the Project Coordinator in administration of all aspects of the Program. Applicant Any person seeking to obtain assistance under the terms of this Program. Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished. Project Coordinator The Project Coordinator for the Program shall be an employee of the City of Farmington and shall provide assistance and management relating to improvement activities. The Project Coordinator is responsible for program marketing, application intake, scheduling of inspections, preparation of contracts and grant documents, and processing of payment requests. The Project Coordinator serves as the contact person for rehabilitation from application to project close-out and shall be available during regular business hours. Target Area Locations that are in commercial zoning districts or districts with a commercial component, including: B-1, B-2,B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T. Eligible Improvements: Façade improvements, corrections of code violations, code improvements and correction of handicap accessibility issues to the extent necessary to eliminate specific conditions detrimental to public health and safety. Special Conditions Contractors: All project work undertaken with CDBG funds must be completed by bona fide contractors who are licensed(as applicable)and provide proof of insurance. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review will follow the procedures outlined in the handbook for Historic Preservation in Farmington. Eligible "historic properties" are those which have been designated or determined eligible for designation as Farmington Heritage Landmarks; within or immediately adjacent to 09/19/2011 3 the boundaries of a historic district; or listed on the National Register of Historic Places. The City will work in conjunction with the State Historic Preservation Office to implement Federal preservation guidelines as they relate to eligibility and certification of work. If the building or the unit was originally built prior to 1950, the property will be evaluated for historical significance by the Historic Preservation Commission(HPC)using the eligibility criteria in the Farmington City Code. If it has been determined that the property is eligible for Farmington Heritage Landmark Designation, a review of the proposed rehabilitation work is necessary, and the work must be in conformance with the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Once work is approved by the Historic Preservation Commission and applicable preservation standards have been met, a Certificate of Appropriateness will be issued by the HPC. Davis-Bacon Wage Rates: All contracts in excess of$2,000 that will be funded through the CDBG program require compliance with the Federal Labor Standards Provisions of the Davis-Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by the U.S. Department of Labor. Appropriate wage information must be included in the bid selections and contract documents. The Project Coordinator must approve all payrolls prior to the release of funds. Fair Housing&Equal Opportunity The City of Farmington and the Project Coordinator will work affirmatively to ensure that all persons, regardless of race, color, creed, national origin, sex,religion, marital status, age,handicap, familial status or reliance on public assistance will be treated fairly and equally for purposes of participation in the Program. Access to program information and materials will not be denied to any person for any reason. The City will encourage the participation of women and minority-owned businesses and local businesses and suppliers who meet Section 3 Criteria. Lead Based Paint The program will conform to the requirements of the Residential Lead Based Paint Hazard Reduction Act of 1992 for any assisted property that contains residential dwelling units. All program applicants must provide notification of the hazards of lead based paint to impacted tenants. The Building Official shall inspect for defective paint surfaces at the time the property is being inspected for code compliance. All defective surfaces will be corrected in accordance with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices. Additionally, contracts for rehabilitation work will include language explicitly prohibiting the use of lead based paint. Data Privacy All information provided by applicants under the Commercial Rehabilitation Grant Program shall be maintained in accordance with the Minnesota Data Practices Act and the City's Subrecipient Agreement with the Dakota County CDA. 09/19/2011 4 Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon funds availability. Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved. Prior to project approval, the following will be ascertained: a. Title verification; b. All real estate taxes and any City fees or charges are current; c. All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2. The extent to which the project meets the program objectives; 3. The degree of the project's overall impact on the surrounding area. 4. An environmental review of the property shall be`conducted by the CDA. Allow 60 days for the completion of the environmental review. 5. Property details for properties older than 50 years will be submitted to the State Historic Preservation Officer(SHPO)by the CDA for determination of the property's historical significance. If necessary, applications competing for limited funds may be selected based upon these criteria. Projects that are not financially feasible within the constraints of available funding will be eliminated from consideration. Property Inspections Upon determination that a property owner applying for rehabilitation assistance is eligible based on the program guidelines,the Building Official shall conduct an inspection of the property to determine the corrective actions necessary for the property to conform to City of Farmington building code standards. Scope of Work The Scope of Work will have two (2)components: 1. Upon completion of the initial inspection, the Building Official shall prepare a report indicating the work necessary to bring the property into compliance with Farmington building codes inclusive of the Minnesota Energy Efficiency Standards. In addition,the Project Coordinator will complete the CDBG Slum&Blight for Spot Basis National Objective Form. Both reports will be used for the project to satisfy the intent of the Program and shall be included as a part of the Scope of Work. 2. The property owner shall provide a report or elevation drawing indicating any planned improvements. This report will be reviewed by the City of Farmington and the HPC if applicable(see historic properties). 09/19/2011 5 Project Approval The final application will be approved by the Farmington City Council; following review by City of Farmington staff and recommendation by the EDA. Improvements approved for CDBG funding will be based on the severity of the correction needed and the ability of the applicant to complete the project with CDBG funds and private funds. The Dakota County CDA will determine final approval. Verification of availability of private funds will be required before final approval of the project. Competitive Bidding A minimum of three(3)competitive bids must be solicited and two(2)competitive bids must be obtained for each improvement project the applicant proposes for CDBG funding. Applicants may use any contractor they choose, as long as the contractor meets the requirements listed below. All contractors must provide a Certificate of Insurance Coverage. Contractors must also certify that they will comply with the requirements of the Davis-Bacon Act. These rates will be provided to the applicant as a part of the contractor's instructions. Awarding Contracts The contract will be between the applicant and the contractor. The contract will be awarded to the lowest bid unless one(1) of the following circumstances occur: 1. The bid is determined to be unrealistically low and the contractor agrees to withdraw the bid; 2. The contractor has failed to follow the procedures as outlined in the instructions to the bidders; 3. The owner does not want the low-bid contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. 4. There appears to be collusion between two (2) or more contractors, in which case, all bids in the questionable trade category will be thrown out and different contractors will be solicited for bids; and 5. The contractor fails to bid according to the specifications, and it proves impossible to compare that contractor's bid with the other bids received. Approval by the Economic Development Authority(EDA)and City Council Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA. Upon EDA approval, the item will be forwarded to the City Council for fmal approval. If approved by the City Council, a Grant Agreement will be signed by the applicant and a designated City official. This Agreement will outline the terms and conditions of the project, including the City's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed A preconstruction conference will be held with the Program Coordinator,the Building Official,the applicant and contractors and subcontractors to ensure awareness and compliance with Davis-Bacon requirements and any other 09/19/2011 6 requirements necessary to begin the project. A notice to proceed will be issued after the preconstruction conference. The contractor will normally have one(1)year in which to complete the awarded contract. If construction work does not begin within 90 days of the award of contract the Grant Agreement is null and void: however the applicant may apply for one extension if necessary. The length of the extension will be determined on a case-by-case basis. Change Orders All change orders to the current contract require the approval of the Project Coordinator as well as the signatures of the owner and contractor. Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the owner and contractor concerning the completion of work,the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable State law. CDBG funds shall not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Farmington, the Farmington EDA, and the Dakota County CDA and their respective officers, employees, and officials from any damages or liability arising from, or occurring as a result of, the activities funded through this Program. CDBG Payment All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the owner and the City of Farmington. Payments will be made only after all code improvements and exterior work have been completed according to the authorized scope of work, and have been accepted by the owner. Funds will be released once all improvements are complete to the satisfaction of the City Building Official and once title ownership,Davis-Bacon wage payments and other requirements are satisfied with the CDA and the City. The Building Official and City staff will inspect the final project, and a Certificate of Occupancy(CO)or a Temporary Certificate of Occupancy(TCO)will be issued by the Building Inspections Division. The CO or TCO is required before the CDA releases funds. Payment may be made directly to the contractor or in reimbursement to the owner, upon presentation of paid receipts for approved work. The following must be presented to the Project Coordinator in order to process payment: 1. Billing Statement/Paid Receipt 2. Sworn Contractor's Statement 3. Completion Certificate 4. Weekly Payroll Reports 09/19/2011 7 Private Financing Applicants are responsible for all costs incurred as a result of not accepting the lowest bid, and costs above and beyond the availability of CDBG funds as outlined in the Program. Applicants shall contact a lending institution of their choice to arrange financing for their portion of the project. Applicants should request a letter of credit or other suitable documentation from the lending institution to prove that private funds have been committed. This letter is to be submitted with the completed application. If an applicant is not using a lending institution, other evidence of committed funds must be presented at the time of application. Escrow The property-owner may be requested to establish an escrow account or other private account for deposit of the private funds that will be used to complete the improvement project. The CDBG funds shall be reserved on the Owner's behalf by the Dakota County CDA,but shall be drawn from the U.S. Treasury only when actually needed for disbursement to contractors or vendors, or in reimbursement to the Owner. Appeals Process Appeals concerning eligibility for the Commercial Rehabilitation Grant Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The Coordinator will contact the applicant and attempt to rectify any concerns. A written response will be made within fifteen(15)days. 09/19/2011 8 /ICJ owfii . City of Farmington 430 Third Street Farmington,Minnesota ', 651.280.6800•Fax 651.280.6899 A www.cifarmington.mn.us TO: EDA Members FROM: Lee Smick, AICP CNU-A City Planner/Economic Development SUBJECT: Approve Joint Powers Agreement—"Open to Business"Program DATE: January 28, 2013 INTRODUCTION The Open to Business"program with the Metropolitan Consortium of Community Developers (MCCD) in conjunction with the CDA was approved by the EDA on September 24, 2012 and will be performed as a pilot project in Farmington for the next two to three years. Funding from Farmington and the CDA will provide MCCD services under a model known as "Open to Business,"which is an initiative providing small business technical assistance services to existing businesses,residents, and other parties interested in opening a business within communities in Dakota County. Attached is the Joint Powers Agreement(JPA)between the CDA and Farmington to approve the City's participation in the"Open to Business"program(Ex. A). Also attached to this memo is the"Open to Business"brochure that will be distributed to businesses. Additional revisions will be made to the brochure to include the City seal, staff contacts, and as the program progresses,photos of local businesses and quotes from them that chose assistance through this program. DISCUSSION The Joint Powers Agreement proposes that the CDA and the Local Government Cities in Dakota County pursue common goals of fostering economic development in the county. The JPA requests Farmington's approval for working with the CDA to undertake the "Open to Business Program"within Dakota County at a cost of$5,000. Additionally,the Contract for Services, as part of the JPA, identifies the agreement between the MCCD and the CDA concerning the duties and reporting provided by the MCCD. The approval by the EDA in September 2012 designated a cost to the City of$5,000 to participate in the Dakota County CDA program. At the meeting,members also discussed that this endeavor should be a pilot program for two years to determine its merits to the community. The JPA also includes a Contract for Services agreement from the MCCD to the CDA which ends on December 31, 2013. The program fee total is $130,000 on an annual basis for communities in Dakota County. There are ten communities that have chosen to participate in the program and their share of the participation fee depends on the size of each community. Eagan, Burnsville, Lakeville, and Apple Valley have agreed to pay half of the $15,000 total fee for each community with the CDA paying the other half($7,500). Inver Grove Heights is paying half of their share of the contract of$12,500 and the CDA is paying half of that fee ($6,250). The remaining communities; Hastings, Rosemount, South St. Paul, West St. Paul, and Farmington are paying half of their share of the contract total fee of $10,000 with the CDA paying $5,000 for each smaller community's portion. The CDA will pay $7,500 for small cities and townships to participate in the program. Background of 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(brochure). The"Open to Business"program is designed to provide intensive one-on-one technical assistance to 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 to businesses 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 financing • Help obtaining competent legal advice MCCD"Open to Business" Staff Laurie Crow, Business Advisor,has been hired to work with the ten communities and townships in Dakota County. She is the former owner of two businesses before joining the MCCD, and she has great knowledge in how to start, maintain, and run a business. She also has marketing experience to offer to new and existing businesses in Farmington. City staff will work and learn from her on a continual basis about the City's marketing efforts and general knowledge of owning a business. Staff has already met with Ms. Crow on January 2, 2013 to determine her space and equipment needs at City Hall. The JPA Agreement requires a City office be provided for Ms. Crow to perform her duties. Staff has determined that she will conduct the program from the office to the west of the Building/Planning counter. This office will provide public access for business owners to perform the"Open to Business"program due to the space located off of the atrium. Any interested owner,resident or other interested parties considering the opening of a business or assistance to existing businesses in the City will have the privacy to work with Ms. Crow, and all of the discussions with these parties will remain confidential and not discussed with City staff. She will be in City Hall the 4th Tuesday of each month between 9:00 AM— 11:00 AM. Her start date is February 26, 2013. Her reports back to the City and reporting dates will include the following: ➢ Number of inquiries ➢ Hours of technical assistance provided ➢ Type of assistance provided ➢ Type of business > Annual sales revenue > Number of businesses opened ➢ Number of business expanded/stabilized > Number and amounts of financing packages > Demographic information on entrepreneurs > Business address or resident address ➢ Number and wage of FTEs created ➢ Number and wage of FTEs retained The required reporting schedule is as follows: 1st quarter January—March, report due April 30th 2nd quarter April—June,report due July 31St 3rd quarter July—September,report due October 315t 4th quarter October—December,report due January 31St of 2014 "Open to Business"marketing on City website Staff has included"Open to Business"marketing materials on the City's website to advertise the program. Staff will also work with Laurie Crow on a letter to businesses including a brochure informing them of the program. She will also join staff at the Farmington EXPO on January 26,2013 where she can meet business owners and make contacts. Through these efforts, staff is hoping to get a number of inquiries from owners of potential and existing businesses. BUDGET IMPACT $5,000 was included in the 2013 Economic Development budget for the"Open to Business"program. ACTION REQUESTED Approve the attached Joint Powers Agreement to participate in the Dakota County CDA and MCCD "Open to Business"program and make any comments concerning the brochure. Respectfully s bmitted, 01, Lee Smic ,AICP C A City Planner JOINT POWERS AGREEMENT Open to Business Program THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of December 1, 2012,by and between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY(the "CDA"), a public body corporate and politic organized and existing under the laws of the State of Minnesota (the "State"), and each of the CITY OF BURNSVILLE, CITY OF LAKEVILLE, INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY, HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY, ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, SOUTH ST. PAUL HOUSING AND REDEVELOPMENT AUTHORITY AND WEST ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA (each individually a "Local Government Entity" and together the "Local Government Entities"), each a political subdivision of the State. RECITALS: A. In order to pursue common goals of fostering economic development,the CDA and the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community Developers, a Minnesota non-profit corporation ("MCCD") to undertake the "Open To Business Program" (the"Program")within Dakota County(the"County"). B. Pursuant to the Program, MCCD will provide technical assistance and access to capital to small business and potential entrepreneurs in the County. C. The CDA and the Local Government Entities propose to jointly exercise their common economic development powers to undertake the Program. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the CDA and each of the Local Government Entities, each party does hereby represent, covenant and agree with the others as follows: Section 1. Representations. Each of the Local Government Entities and the CDA makes the following representations as to itself as the basis for the undertaking on its part herein contained: (a) It is a political subdivision of the State of Minnesota with the power to enter into this Agreement and carry out its obligations hereunder. Joint Powers Agreement (b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which it is now a party or by which it is bound,or constitutes an event of default under any of the foregoing. Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to this Agreement are the powers of the CDA and the Local Government Entities under Minnesota Statutes, Chapter 469, to undertake activities to promote economic development within their respective jurisdictions. Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own behalf and on behalf of the Local Government Entities, will initially enter into an agreement with MCCD in substantially the form attached hereto as Exhibit A (the "Agreement") to engage MCCD to operate the Program within Dakota County. The CDA and each of the Local Government Entities will make payments to MCCD as described in Exhibit A of the Agreement. The CDA may from time to time execute and deliver documents amending, modifying or extending the Agreement as it deems necessary or convenient, provided, that no such document will adversely affect services provided to, or amounts payable by, any Local Government Entity without the prior written consent of such Local Government Entity. Section 4. Limited Liability. Neither the CDA nor the any of the Local Government Entities shall be liable for the acts or omissions of the other in connection with the activities to be undertaken pursuant to this Agreement. To the extent permitted by law, (a)the CDA hereby indemnifies the Local Government Entities for costs associated with claims made against the Local Government Entities directly relating to actions taken by the CDA, and(b)each Local Government Entity hereby indemnifies the CDA for costs associated with claims made against the CDA directly relating to actions taken by such Local Government Entity. Nothing herein shall be deemed a waiver by the indemnifying party of the limits on liability set forth in Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on behalf of the indemnified party, any amounts in excess of the limits on liability set forth in Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay on behalf of itself, its officers, agents and employees for claims arising out of the same occurrence. Section 5. Conflict of Interests; Representatives Not Individually Liable. The CDA and each of the Local Government Entities, to the best of its knowledge, represents and agrees that no member, official or employee of their respective bodies shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official or employee of the CDA or any Local Government Entity shall be personally liable with respect to any default or breach by any of them or for any amount which may become due to the other party or successor or on any obligations under the terms of this Agreement. 2 Joint Powers Agreement 9298589v1 Section 6. Term; Distribution of Property. The term of this Agreement shall expire on December 31, 2013. There is no property which will be acquired by the CDA or any Local Government Entity pursuant to the Program which would need to be distributed at the end of the term hereof Section 7. Notices and Demands. A notice, demand or other communication under this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally to the person and at the addresses identified on each signature page hereto, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 8. Counterparts. This Agreement may be executed in any number of counterparts,each of which shall constitute one and the same instrument. [Remainder of page intentionally left blank] 3 Joint Powers Agreement 9298589v1 IN WITNESS WHEREOF, the CDA and the Local Government Entities have caused this Agreement to be duly executed in their respective names and behalf as of the date first above written,with actual execution on the dates set forth below. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Dated: By Its Executive Director Notice Address: Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123 Attn: Andrea Brennan, Director of Community and Economic Development S - 1 Joint Powers Agreement FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 430 Third Street Farmington, MN 55024 Attn: S - 9 Joint Powers Agreement Exhibit A Contract for Services for the Open To Business Program A- 1 Joint Powers Agreement 9298589v1 Contract for Services for the Open to Business Program THIS AGREEMENT is dated January 2, 2013 and is between the Dakota County Community Development Agency("CDA")and Metropolitan Consortium of Community Developers, a Minnesota nonprofit corporation("MCCD"). WHEREAS,the CDA, on behalf of itself and the ten political subdivisions of the State of Minnesota listed on Exhibit A hereto (the"Local Government Entities"), which each have powers with respect to a city with a population over 10,000 (collectively the"Municipalities"), wishes to engage MCCD to render services under a model known as"Open to Business,"an initiative providing small business technical assistance services to existing businesses and residents and other parties interested in opening a business within Dakota County(the "County") (the"Initiative"); and WHEREAS,MCCD has represented itself as competent to provide the services required to administer and carry out the Initiative and has previous experience working with the Initiative; and WHEREAS,pursuant to CDA Resolution No. 12-5128, adopted on September 18, 2012 (the "Resolution"), the CDA is authorized to enter into this agreement with MCCD for the Initiative; and WHEREAS,pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Local Government Entities(the"Joint Powers Agreements"),the CDA will act as fiscal agent for the Local Government Entities in connection with this Agreement; and WHEREAS,the CDA will pay from its own funds 50% of the fee charged by MCCD for the Initiative in the Municipalities and 100% of the fee charged by MCCD for the Initiative in the small cities and townships within the County with populations of less than 10,000 people ("Small Cities and Townships"), as further described herein and in Exhibit A; and WHEREAS,pursuant to the Joint Powers Agreements,the Local Government Entities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50%of the fee charged by MCCD for the Initiative in the Municipalities. Now therefore, for good and valuable consideration,the receipt of which is hereby acknowledged,the parties agree as follows: 9293870v3 TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence upon execution and delivery of this Agreement and will end on December 31, 2013, subject to earlier termination as provided herein. MCCD will perform services necessary to carry out the Initiative as promptly as possible, and with the fullest due diligence. COMPENSATION Subject to reduction as provided below,the CDA will compensate MCCD for its services hereunder an amount equal to One Hundred Thirty Thousand Dollars ($130,000) ("Contract Amount"). The CDA will pay such amount in two equal installments,the first no earlier than January 30, 2013 and the second no earlier than June 30,2013,upon receipt of invoices from MCCD. Subject to the limits above, payments will be due within 15 days of receipt of the respective invoices. The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Local Government Entities. In the event a Local Government Entity does not pay to the CDA its Participation Fee in amounts and by the deadline described in Exhibit A,the CDA will notify MCCD, and MCCD will immediately cease the Initiative in that Municipality. Upon such termination,the Contract Amount will be reduced by an amount equal to the Participation Fee which such Local Government Entity did not pay and the amount the CDA would have paid as a matching payment. SCOPE OF SERVICES MCCD will provide technical assistance to existing businesses, residents and those parties interested in starting a business in any of the Municipalities and Small Cities and Townships as further described on Exhibit B and Exhibit C attached hereto, which sets forth the Dakota Open to Business Program Scope of Services. REPORTING MCCD will submit quarterly reports to the CDA in form and substance acceptable to the CDA. Reports will provide information in the aggregate for the County and will include a subreport for each Municipality and each of the Small Cities and Townships. Reports will include the following information: ➢ Number of inquiries ➢ Hours of technical assistance provided ➢ Type of assistance provided > Type of business ➢ Annual sales revenue 9293870v3 ➢ Number of businesses opened ➢ Number of business expanded/stabilized ➢ Number and amounts of financing packages > Demographic information on entrepreneurs > Business address or resident address ➢ Number and wage of FTEs created > Number and wage of FTEs retained The required reporting schedule is as follows: 1st quarter January—March, report due April 30th 2nd quarter April—June,report due July 31St 3rd quarter July—September,report due October 31st 4th quarter October—December, report due January 31St of 2012 In addition to the foregoing, MCCD will provide additional reports as reasonably requested by the CDA. PERSONNEL MCCD represents that it has, or will employ or contract for, at its own expense,all personnel required to perform the services necessary to carry out the Initiative. Such personnel will not be employees of, or have any contractual relationship with,the County,the CDA or any of the Local Government Entities. No tenure or any other rights or benefits, including worker's compensation,unemployment insurance, medical care, sick leave,vacation pay, severance pay, or any other benefits available to the County's, the CDA's or any of the Local Government Entities' employees shall accrue to MCCD or employees of MCCD performing services under this agreement. The MCCD is an independent contractor. All of the services required to carry out the Initiative will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Initiative. MCCD personnel will have access to the CDA's meeting rooms,wireless internet service, copy machines and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space, equipment and internet access. If the CDA, in its sole discretion, determines that MCCD Personnel have failed to comply with CDA office 9293870v3 rules and policies,MCCD Personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Initiative. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer, member, or employee of the CDA and no member of its governing body, and no other public official or governing body of any locality in which the Initiative is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative, will participate in the decision relating to this Agreement which affects his/her personal interest or the interest of any corporation,partnership, or association in which he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement. ASSIGNABILTY MCCD will not assign any interest in this Agreement, and will not transfer any interest in the same without the prior written approval of the CDA. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal laws, statutes and applicable regulations of the State of Minnesota and the ordinances of the Local Government Entities. INSURANCE MCCD agrees at all times during the term of this Agreement, and beyond such term when so required,to have and keep in force the following insurance coverages: Limits 1. Commercial General Liability on an occurrence basis with contractual liability coverage: General Aggregate $2,000,000 Products—Completed Operations Aggregate 2,000,000 Personal and Advertising Injury 1,500,000 Each Occurrence—Combined Bodily Injury and Property Damage 1,500,000 2. Workers' Compensation and Employer's Liability: Workers' Compensation Statutory In the event that MCCD should hire employees or subcontract this work, MCCD shall obtain the required insurance. Employer's Liability. Bodily injury by: Accident—Each Accident 500,000 Disease—Policy Limit 500,000 9293870v3 Disease—Each Employee 500,000 INDEMNIFICATION MCCD agrees to defend, indemnify, and hold harmless the County, the CDA,the Local Government Entities, and each of their respective officials, officers, agents,volunteers and employees from any liability, claims, causes of action,judgments, damages, losses, costs,or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of MCCD, its subcontractors, anyone directly or indirectly employed by MCCD or any of its subcontractors, and/or anyone for whose acts and/or omissions MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of the failure of MCCD to perform any obligation under this Agreement. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail,postage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD, is addressed or delivered personally to: Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 (b) In the case of the CDA is addressed or delivered personally to: Andrea Brennan, Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Dr. Eagan, MN 55123 or at such other address with respect to any party as that party may designate in writing and forward to the other as provide in the Section. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON-DISCRIMINATION In connection with its activities under this Agreement, MCCD will not violate any Federal or State laws against discrimination. DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute a default hereunder. 9293870v3 Unless MCCD's default is cured within 15 days following notice by the CDA, the CDA may(i) cancel this Agreement in its entirety by 5 additional days' written notice to MCCD, or(ii) withhold payment from MCCD as long as such default continues. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 9293870v3 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By: Executive Director Date: MCCD By: Printed Name: Printed Title: Date: 9293870v3 Exhibit A Local Government Entity Participation Fee Schedule Municipality Local Government Total CDA Local Entity Fee Share of Government Fee Entity Participation Fee Due 1/30/13 Eagan Economic Development Eagan Authority $15,000 $7,500 $7,500 City of Burnsville Burnsville $15,000 $7,500 $7,500 City of Lakeville Lakeville $15,000 $7,500 $7,500 Apple Valley Economic Apple Valley Development Authority $15,000 $7,500 $7,500 Inver Grove Heights Economic Inver Grove Development Authority $12,500 $6,250 $6,250 Heights Hastings Economic Hastings Development and $10,000 $5,000 $5,000 Redevelopment Authority Rosemount Port Authority Rosemount $10,000 $5,000 $5,000 Farmington Economic Farmington Development Authority $10,000 $5,000 $5,000 South St. Paul Housing and South St. Paul Redevelopment Authority $10,000 $5,000 $5,000 West St. Paul Economic West St. Paul Development Authority $10,000 $5,000 $5,000 Small Cities n/a and $7,500 $7,500 $0 Townships _ Total $130,000 $68,750 $61,250 9293870v3 Exhibit B Dakota Open to Business Program Scope of Services Open to Business ("OTB") Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Municipalities' and Small Cities' and Townships' businesses,residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County(the"County"). MCCD will dedicate one full time staff person based in the County to provide the Technical Assistance Services("Dakota OTB Staff"). In addition, MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes,but is not limited to,the following: D 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 Dakota OTB Staff will be available to meet clients at the CDA office building,various Municipality city halls or at the client's place of business. MCCD Dakota OTB Staff will provide technical assistance on a walk-in basis monthly in each Municipality, if requested. MCCD will also hold two-hour"Test Drive Your Business Idea"sessions once a month in various Municipality locations. 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 C Small Business Loan Program Guidelines below). MCCD also provides its financing in partnership with other community lenders, banks or Local Government Entities interested in making capital available to residents and/or businesses in their community. 9293870v3 EXHIBIT C 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. 9293870v3 v � O C 1 4 b _LF 13 At Z ta co t � A M k-0 � =f ° co�� 3' INP 0 �, 3 %hir 1„:„„) A., ,v- 1 ,....- ' to O CD ti.UI Sri CO Cr CD O "e ,p C C y(D° . a Si .. ch ti) o J (a) ; 0- o obi o Voa * O ,. 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O ° ° O c° ? ° e. �- � — 6 — �; `° _ � a _ au) 0 u, -� -g CD 1 � 14 � SSm °? � a0 �• 0 ea -0 a ° cue � 66 ag3 :: Q a s ° C 0 Z �. ° C O CD = v� o d © �.lir 3 ID 5 0" 3co 3 > > ! co 3 3 C � Xc .0 3 . tD ° a,- m °' ° .� ,o 3 ° m ° 3 al tit 0 3 a' � � Win. 3 "� to 03 a tn 0 3 -a XCD =a3. 14` Q. a. gil it a ' 08 * commg81V. * V, g0 .b * 3 **c g u Ft * Z 11* a a.3 0a 0 ea o �NjiU !IUh.HI � g. enm 5 -o w . g. 1 = su w il v is °"v o' :t a � a a °5-4 i 8. � � o o ,I„C n a a.-v ° m Q. C� 5c. - a - 3 @0g0e � 0 aQ a y1 5i g' °, su c - 3aza, c g i 2 — c° °c a a��u y � � m 3. 4 R 1"' OPEN 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 financial 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. OPEN 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 staff's expertise in such areas as start-up financing 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 financing 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 OPE 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 financing 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. r 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 find 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 financed 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 financing for commercial real estate acquisition—up to 90%of the property's appraised value. MCCD Frii OPEN MCCD is no 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 A 170,582 $150,000.00 Sort 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 9'c io�EARMiyc�► City of Farmington 4,1ia 430 Third Street P ` ;;.�; Farmington, Minnesota ���� 651.280.6800•Fax 651.280.6899 '8l.A PROVO\d www.cilarmington.mn.us TO: EDA Members FROM: Lee Smick, AICP, CNU-A City Planner SUBJECT: CDBG Funding Request for FY2013 and Proposed Revision of Business Development Grant Program DATE: January 28, 2013 INTRODUCTION/ A total of four applications for the request of CDBG funding in 2013 were delivered to the Dakota County CDA on December 31st, 2012. The total amount of the funding request was $60,000. On January 8, 2013,the Dakota County Board of Commissioners reviewed and approved the reallocation of$17,510 from the Farmington's Business Development fund to Dakota County and the City of Coates. DISCUSSION City Staff have prepared four applications for review at the EDA, City Council, and Dakota County CDA for CDBG funding. The attached letter to the CDA also explains the reallocation of funding for these four projects. The four applications included the following requests: Property Project CDBA Fund Request Dakota County Lumber—28 8th St Sprinkler System Installation $17,500 Former Rambling River Center Sprinkler System Installation $17,500 431 3`d Street Former Oasis Market— 705 8th St Slum/Blight—Tank Removal $10,000 Installed Building Solutions Business Development Grant $15,000 21025 Edmonton Avenue Equipment Purchase— Mechanical Truck Repair Shop Total $60,000 Commercial Rehabilitation Business Development Grant The City Council approved the resolution on December 17, 2012 concerning the request for CDBG funding for 2013. Business Development Grant Program As stated above, on January 8, 2013,the Dakota County Board of Commissioners removed $17,510 from the Farmington's Business Development Grant fund. At this time, staff is working with the CDA to replenish the fund to include $30,820 from the CDA's FY2013 funding round. Business Development Grant—Baldy's BBQ On January 2, 2013, an additional request for funding from the Business Development Grant program was received from Mr. Brian Wheeler, owner of the soon-to-open restaurant, Baldy's BBQ, at the former Burger King building. Mr. Wheeler has requested that the City allow him to apply for CDBG funding under the Business Development Grant for the purchase of cooking equipment for his new restaurant. He is requesting the maximum of$15,000 through the CDBG program. The grant will have sufficient funding after the CDA's FY2013 reallocated funds of $30,820. At this time, Mr. Wheeler does not qualify for the grant because the City only allows existing businesses receive monies to relocate or expand within the City of Farmington. Mr. Wheeler's proposal is to locate a"new"business in the City. Business Development Grant—2008 Approval The original Business Development Grant requirements were developed and approved by the 7- Member EDA on April 28, 2008. The intention for the grant was to meet a number of existing business owner's requests for City funded business expansion projects in Farmington. At the time,the 7-Member EDA proposed that grant money would be allocated through an RFP process so the allocation was fair to all applicants. The RFP requirement is no longer stated in the 2012 Grant. Business Development Grant—2013 Proposed Amendment Staff and the CDA have agreed that the EDA should review the objectives of the City's Business Development Grant program to include"new"business grant opportunities. Therefore, staff is proposing text changes to the Business Development Grant to allow"new" businesses to have the opportunity to apply for CDBG funding. The proposed amendments are described below (also in attached Business Development Grant packet);text shown underlined identifies"new" text and text identified as strikeout removes the text. Revisions are highlighted in yellow. Program Objectives a) To promote job growth re eeal-jebs within the City by encouraging new and existing businesses to locate, relocate and/or expand within the City of Farmington. Detained jobs b) To create additional job opportunities within-the-City while also retaining local jobs within the City. Retained jobs are positions that would be eliminated if not for this program assistance. Applicant will be required to provide documentation of the retained positions. c) To support entrepreneurial growth within the City for new and existing businesses. Eligible Recipients a) The property must be located within a commercially or industrially zoned district or a district that has a commercial or industrial component. This would include the following zoning districts: I-1, IP, B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex,Mixed Use and R-T. (1) Ineligible project costs include but are not limited to interior remodeling improvements, furniture, financing fees,business or operating costs(excluding rental cost assistance for microenterprise applicants), equipment(unless considered part of a new or expanding business expansien-and the additional equipment results in additional product or service offerings by the company), removable fixtures and building acquisition costs. Costs incurred prior to the application date are not eligible for program funding. Eligible Uses of Funding: Applicants may apply for grant funding for one of the following uses only. (a) Business Development Expansion Assistance. One time grant funding for an a new or existing Farmington business that is establishing a new business, expanding their current facility,relocating to, or constructing a facility elsewhere within the city limits. Relocation outside of the City of Farmington within three years of receipt of grant funding, or sale of equipment purchased with grant funding within three years will trigger repayment of grant funding in full. The Applicant would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the Federal Department of Housing and Urban Development through job creation. Applicant will be required to verify that 51%of permanent jobs created or retained on a full time equivalent basis are low to moderate income. ACTION REQUIRED Staff is requesting that the current EDA review the information above to determine if the EDA is interested in amending the Business Development Grant requirements to include "new businesses". Respe, lly bmitt-d drive. Lee Smick, City Planner AICP, CNU-A • o 4..77.--- i ,.... CI° tu 70 ft O b J GO 44 • A PROD City of Farmington Business Development Grant City of Farmington Business Development Grant The City of Farmington has received funding from the Dakota County Community Development Agency (CDA) in the form of Community Development Block Grant (CDBG) funds. These funds will aid the City in supporting local businesses by assisting with financing for business development and growth. The Dakota County CDA distributes the funds on behalf of the U.S. Department of Housing and Urban Development(HUD). Projects that receive CDBG funds are subject to HUD requirements. The following policies and procedures have been developed for projects undertaken with CDBG dollars in the City of Farmington. These policies are subject to change as recommended by the Dakota County Community Development Agency and/or the U.S. Department of Housing and Urban Development. 1. Program Overview Program Purpose To provide financial assistance to business owners who have projects that meet the criteria for the national objective of benefiting low and moderate income (L/M) persons. Types of Assistance CDBG funded grant. Grant Terms &Requirements No more than one grant may be issued per property or per Applicant during the funding year which runs from July l'until June 30`h. a) Amount-Amounts are limited to funding availability. No grant may exceed 50% of proposed total development costs for construction related projects. There is a maximum grant amount of$15,000 for business expansion and relocation use. Microenterprise rental assistance is based on the tenant's lease terms and will not exceed 75% of the monthly rental payment up to twelve (12) consecutive months. Costs for common area maintenance and real estate taxes are not eligible for grant funding. Program Objectives a) To promote job growth retain local jobs within the City by encouraging new and existing businesses to locate, relocate and/or expand within the City of Farmington. Retained jobs are positions that would be eliminated if not for this program assistance. Applicant will be required to provide documentation of the retained positions. 1 b) To create additional job opportunities within the City while also retaining local jobs within the City. Retained jobs are positions that would be eliminated if not for this program assistance. Applicant will be required to provide documentation of the retained positions. c) To support entrepreneurial growth within the City for new and existing businesses. Note: HUD requires that at least 51% of jobs created and/or retained on a full- time equivalent basis are either held by or are considered to be available to low and moderate income persons. Eligible Recipients a) The property must be located within a commercially or industrially zoned district or a district that has a commercial or industrial. component. This would include the following zoning districts: I-1, IP, B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use and R-T. b) All individuals having an ownership interest in such structure or an interest as purchaser in a contract for deed must join in the application and sign the grant agreement with the Economic Development Authority, including the contract holder. c) Leaseholders are eligible to make application for Program funds. The Farmington Economic Development Authority, on a case-by-case basis, will review such applications to determine their eligibility for funding, based on the length of the lease on the property and/or length of time the business has operated in Farmington. The property owner must join in the application and comply with Program requirements. d) Projects that would result in permanent displacement of either residential or business tenants will not be financed with CDBG program funds. Any temporary displacement of tenants resulting from project activities shall be the responsibility of the property owner. Tenants shall be fully informed of the project plans, and the expected impact on them, and shall receive a Notice of Nondisplacement or Displacement, as appropriate, prior to the start of rehabilitation. Property owners will be required to provide relocation assistance to tenants as required under the Uniform Relocation and Real Property Acquisition Policies Act of 1970. e) No member of the governing body of the locality, or official, employee, or agent of the local government who exercises policy, decision-making function or responsibilities, including members of the Economic Development Authority, Planning Commission and Farmington City Council, in connection with the planning and implementation of the Business Development Grant Program shall directly or indirectly benefit from this program. This prohibition shall continue for one (1) year after an individual's relationship with the local government ends. Any potential conflicts of interest under Minnesota Statues 412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570, Uniform 2 intake, scheduling of inspections, preparation of contracts and grant documents, and processing of payment requests. The Project Coordinator serves as the contact person for rehabilitation from application to project close-out and shall be available during regular business hours. Target Area Locations throughout the City of Farmington that are in commercial and industrial zoning districts or districts with a commercial or industrial component, including: I-1, IP, B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T. Eligible Uses of Funding: Applicants may apply for grant funding for one of the following uses only. a) Business Expansion Assistance. One time grant funding for an a new or existing Farmington business that is establishing a new business, expanding their current facility, relocating to, or constructing a facility elsewhere within the city limits. Relocation outside of the City of Farmington within three years of receipt of grant funding, or sale of equipment purchased with grant funding within three years will trigger repayment of grant funding in full. The Applicant would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the Federal Department of Housing and Urban Development through job creation. Please refer to Job Creation Requirements and Wage and Income Reporting under Section 3, Special Conditions (page 5) for further requirements. b) Microenterprise assistance. Rental assistance for a period of one year to an owner of a microenterprise business or a person choosing to develop a microenterprise business that will occupy a currently vacant commercial or industrial space within the city limits. The business must meet the criteria of microenterprise defined as a business having five or fewer employees, one or more of whom owns the business. The Applicant must submit a comprehensive business plan and the business must not relocate outside of the City of Farmington for a period of three years after receiving assistance or repayment of grant funding in full will be required. Please refer to Job Creation Requirements and Wage and Income Reporting under Section 3, Special Conditions (page 5) for further requirements. c) Redevelopment Assistance. Redevelopment of EDA owned property. The redevelopment would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the U.S. Department of Housing and Urban Development. A mixed-use project that includes commercial and residential will need to meet the national objective related to both job creation and low/moderate income housing. There may be additional site specific requirements. For further details please contact a City of Farmington Economic Development staff member. Please refer to Job 4 intake, scheduling of inspections, preparation of contracts and grant documents, and processing of payment requests. The Project Coordinator serves as the contact person for rehabilitation from application to project close-out and shall be available during regular business hours. Target Area Locations throughout the City of Farmington that are in commercial and industrial zoning districts or districts with a commercial or industrial component, including: I-1, IP, B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T. Eligible Uses of Funding: Applicants may apply for grant funding for one of the following uses only. a) Business Expansion Assistance. One time grant funding for an a new or existing Farmington business that is establishing a new business, expanding their current facility, relocating to, or constructing a facility elsewhere within the city limits. Relocation outside of the City of Farmington within three years of receipt of grant funding, or sale of equipment purchased with grant funding within three years will trigger repayment of grant funding in full. The Applicant would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the Federal Department of Housing and Urban Development through job creation. Please refer to Job Creation Requirements and Wage and Income Reporting under Section 3, Special Conditions (page 5) for further requirements. b) Microenterprise assistance. Rental assistance for a period of one year to an owner of a microenterprise business or a person choosing to develop a microenterprise business that will occupy a currently vacant commercial or industrial space within the city limits. The business must meet the criteria of microenterprise defined as a business having five or fewer employees, one or more of whom owns the business. The Applicant must submit a comprehensive business plan and the business must not relocate outside of the City of Farmington for a period of three years after receiving assistance or repayment of grant funding in full will be required. Please refer to Job Creation Requirements and Wage and Income Reporting under Section 3, Special Conditions (page 5) for further requirements. c) Redevelopment Assistance. Redevelopment of EDA owned property. The redevelopment would have to meet the criteria for the national objective of benefiting low to moderate income persons as defined by the U.S. Department of Housing and Urban Development. A mixed-use project that includes commercial and residential will need to meet the national objective related to both job creation and low/moderate income housing. There may be additional site specific requirements. For further details please contact a City of Farmington Economic Development staff member. Please refer to Job 4 Creation Requirements and Wage and Income Reporting under Section 3, Special Conditions (page 5) for further requirements. 3. Special Conditions Contractors: All project work undertaken through this program must be completed by bona fide contractors who are licensed(as applicable) and provide proof of insurance. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review will follow the procedures outlined in the handbook for Historic Preservation in Farmington. Eligible "historic properties" are those which have been designated or determined eligible for designation as Farmington Heritage Landmarks; within or immediately adjacent to the boundaries of a historic district; or listed on the National Register of Historic Places. The City will work in conjunction with the State Historic Preservation Office to implement Federal preservation guidelines as they relate to eligibility and certification of work. If the building or the unit was originally built prior to 1950, the property will be evaluated for historical significance by the Historic Preservation Commission (HPC) using the eligibility criteria in the Farmington City Code. If it has been determined that the property is eligible for Farmington Heritage Landmark Designation, a review of the proposed rehabilitation work is necessary, and the work must be in conformance with the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Once work is approved by the Historic Preservation Commission and applicable preservation standards have been met, a Certificate of Appropriateness will be issued by the HPC. Microenterprise Applicants: Application materials must include a business plan for the proposed or existing microenterprise. The business plan must include an Executive Summary, Company Summary, Product Information, Market Analysis, Strategy and Implementation, Management Summary and Financial Plan. Job Creation Requirements and Wage and Income Reporting: Applicants must meet the CDBG national objective of benefiting low to moderate income persons, the Applicant will be required to verify that 51% of permanent jobs created or retained on a full time equivalent basis are low to moderate income. These jobs must be documented as either being held by or available to low to moderate income persons (per 24 CFR Part 570.208 (a)(4)). Verification must be submitted annually to the Project Coordinator for a period of five years. For microenterprise assistance, the low to moderate income benefit may also be met if the person who owns the microenterprise is of low to moderate income. For redevelopment of EDA owned property with affordable housing units these requirements are not applicable; see Affordable Housing Requirements and Reporting(page 6). 5 Davis-Bacon Wage Rates: All contracts in excess of$2,000 require compliance with the Federal Labor Standards Provisions of the Davis-Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by the U.S. Department of Labor. Appropriate wage information must be included in the bid selections and contract documents. The Project Coordinator must approve all payrolls prior to the release of funds. Fair Housing&Equal Opportunity The City of Farmington and the Project Coordinator will work affirmatively to ensure that all persons, regardless of race, color, creed, national origin, sex, religion, marital status, age, handicap, familial status or reliance on public assistance will be treated fairly and equally for purposes of participation in the Program. Access to program information and materials will not be denied to any person for any reason. The City will encourage the participation of women and minority-owned businesses and local businesses and suppliers who meet Section 3 Criteria. Lead Based Paint The program will conform to the requirements of the Residential Lead Based Paint Hazard Reduction Act of 1992 for any assisted property that contains residential dwelling units. All program Applicants must provide notification of the hazards of lead based paint to impacted tenants. The Building Official shall inspect for defective paint surfaces at the time the property is being inspected for code compliance. All defective surfaces will be corrected in accordance with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices. Additionally, contracts work will include language explicitly prohibiting the use of lead based paint. Data Privacy All information provided by Applicants under the Business Development Grant Program shall be maintained in accordance with the Minnesota Data Practices Act and the City's Subrecipient Agreement with the Dakota County Community Development Agency. Affordable Housing Requirements and Reporting: Applicants redeveloping EDA owned property with affordable housing must meet the CDBG national objective of benefiting low to moderate income persons. The Applicant will be required to verify that the rents are set at affordable levels and that 51% of the units are occupied by low or moderate income households. 4. Procedures Application Intake Applications are accepted on a continual basis and will be reviewed based upon the balance of CDBG funding available. Applications will be considered for participation in the program based upon the following guidelines as applicable: 6 a) Whether the Applicant has clear title to the property to be improved/constructed. Prior to project approval, the following will be ascertained: i. Title verification; ii. All real estate taxes and any City fees or charges are current; iii. All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; b) Verification of lease information and zoning compliance. c) Review of business plan. d) The extent to which the project meets the program objectives; e) The degree of the project's overall impact on the surrounding area. If necessary, applications competing for limited funds may be selected based upon these criteria. Projects that are not financially feasible within the constraints of available funding will be eliminated from consideration. Property Inspections Upon determination that an Applicant requesting assistance is eligible based on the program guidelines, the Building Official shall conduct an inspection of the property to determine the corrective actions necessary for the property to conform to City of Farmington building code standards. Scope of Work The Scope of Work will have two (2) components: a) Upon completion of the initial inspection, the Building Official shall prepare a report indicating the work necessary to bring the property into compliance with Farmington building codes inclusive of the Minnesota Energy Efficiency Standards. This report, and any improvements deemed necessary by the Project Coordinator for the project to satisfy the intent of the Program, shall be included as a part of the Scope of Work. b) The Applicant shall provide a report or elevation drawing indicating any planned exterior improvements. This report will be reviewed by the City of Farmington and the Historic Preservation Commission if applicable (see Historic Properties, page 4). Project Approval The final application will be reviewed by the Project Coordinator and the Economic Development Authority. Projects approved for Program funding will be based on the scope of work proposed and the ability of the Applicant to complete the project with CDBG funds and private funds.The Dakota County Community Development Agency will determine final approval. Verification of commitment of private funds will be required before final approval of the project. 7 Competitive Bidding A minimum of three (3) competitive bids must be solicited and two (2) competitive bids must be obtained for each improvement project the Applicant proposes for Program funding. Applicants may use any contractor they choose, as long as the contractor meets the requirements listed below. All contractors must provide a Certificate of Insurance Coverage. Contractors must also certify that they will comply with the requirements of the Davis-Bacon Act. These rates will be provided to the Applicant as a part of the contractor's instructions. Awarding Contracts The contract will be between the Applicant and the contractor. The contract will be awarded to the lowest bid unless one (1) of the following circumstances occur: a) The bid is determined to be unrealistically low and the contractor agrees to withdraw the bid; b) The contractor has failed to follow the procedures as outlined in the instructions to the bidders; c) The Applicant does not want the low-bid contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. d) There appears to be collusion between two (2) or more contractors, in which case, all bids in the questionable trade category will be thrown out and different contractors will be solicited for bids; or e) The contractor fails to bid according to the specifications, and it proves impossible to compare that contractor's bid with the other bids received. Approval by the Economic Development Authority Once the Applicant has accepted a bid(s) determining the cost of the entire project, the project coordinator will prepare the information for presentation to the Economic Development Authority. Upon EDA approval, a Grant Agreement will be signed by the Applicant and a designated City official. This Agreement will outline the terms and conditions of the project, including the City's role and the Applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed A preconstruction conference will be held with the Program Coordinator, the Building Official, the Applicant and contractors and subcontractors to ensure awareness and compliance with Davis-Bacon requirements and any other requirements necessary to begin the project. A notice to proceed will be issued after the preconstruction conference. The contractor will normally have one (1)year in which to complete the awarded contract. If construction work does not begin within 90 days of the award of contract the Grant Agreement is null and void; however, the Applicant may apply for one extension if necessary. The length of the extension will be determined on a case- by-case basis. 8 Change Orders All change orders to the current contract require the approval of the Project Coordinator as well as the signatures of the Applicant and contractor. Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the Applicant and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable State law. CDBG funds shall not be released to either the Applicant or contractor until such dispute has been settled. Hold Harmless The Applicant and the contractor shall indemnify and hold harmless the City of Farmington and the Dakota County CDA and their respective officers, employees, and officials from any damages or liability arising from, or occurring as a result of, the activities funded through this Program. CDBG Payment All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the Applicant and the City of Farmington. Payments will be made only after all project work has been completed according to the authorized scope of work, and has been accepted by the Applicant. Funds will be released once all improvements are complete to the satisfaction of the City Building Official and once title ownership, Davis-Bacon wage payments and other requirements are satisfied with the CDA and the City. The Building Official and City staff will inspect the final project, and a Certificate of Occupancy(CO) or a Temporary Certificate of Occupancy(TCO)will be issued by the Building Inspections Division. The CO or TCO as well as lien waivers are required before the CDA releases funds. Payment may be made directly to the contractor or in reimbursement to the Applicant, upon presentation of paid receipts for approved work. The following must be presented to the Project Coordinator in order to process payment: a) Billing Statement/Paid Receipt b) Sworn Contractor's Statement c) Completion Certificate d) Weekly Payroll Reports e) Lien Waiver 9 Private Financing Applicants are responsible for all costs incurred as a result of not accepting the lowest bid, and costs above and beyond the availability of CDBG funds as outlined in the Program. Applicants shall contact a lending institution of their choice to arrange financing for their portion of the project. Applicants should request a letter of credit or other suitable documentation from the lending institution to prove that private funds have been committed. This letter is to be submitted with the completed application. If an Applicant is not using a lending institution, other evidence of committed funds must be presented at the time of application. Escrow The Applicant may be requested to establish an escrow account or other private account for deposit of the private funds that will be used to complete the improvement project. The CDBG funds shall be reserved on the Applicant's behalf by the Dakota County CDA, but shall be drawn from the U.S. Treasury only when actually needed for disbursement to contractors or vendors, or in reimbursement to the Owner. Appeals Process Appeals concerning eligibility for the Business Development Grant Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The Coordinator will contact the Applicant and attempt to rectify any concerns. A written response will be made within fifteen(15) days. 10 �4ikV �► City of Farmington 4rA'� 430 Third Street Farmington,Minnesota 651.280.6800•Fax 651.280.6899 'AMO wwwci.farmington.mn.us TO: EDA Members FROM: Lee Smick, AICP, CNU-A City Planner SUBJECT: New EDA Members Orientation DATE: January 28, 2013 INTRODUCTION/DISCUSSION The Ex-Officio Members of the EDA have recently encouraged staff to provide an orientation for all 2013 EDA members. The orientation will take place on Wednesday, February 20, 2013 at 6:00 PM at City Hall in Conference Room 170. In order to ensure that all items are addressed at the meeting, staff is requesting comments from the existing 2012 EDA members concerning information to include in the orientation. Staff is currently proposing the following items be included in the orientation packet to be handed to the newly formed five-member group: 1. Welcome and Introductions 2. Authority of the EDA—MN State Statute 3. EDA Finances—Robin Hanson will be at the orientation discussing the 2013 budget and reviewing examples of the monthly bills included in EDA packets. 4. City Code—Economic Development Authority - Title 2 Chapter 8 5. Organizational Matters a. Bylaws—Discussion of 2012 Bylaws b. Procedure for Election of Officers c. Agenda Format d. 2013 Meeting Calendar(Dates -Bank Summit, Business Attraction Team) e. Procedure for Public Hearing Notices 6. Zoning Map 7. List of Available Buildings and Land 8. 2012 Goals and Accomplishments—A list including new businesses, expanding businesses,programs, and achievements. 9. Brainstorming of 2013 Goals EDA Programs Review • Economic Development Strategic Plan • MCCD—Open to Business Program • BR&E -Business Visits Program • Business Attraction Plan—Proposal, Timeline • GROW Farmington • "Buy, Live Local" Campaign • CDBG Programs • Dakota County CDA - Economic Development Professionals Monthly/Bi-Monthly Meetings Staff understands the amount of items within the packet will be numerous. In this case,packets will be distributed to the five members on February 13, 2013 one week before the February 20, 2013 orientation meeting so that members will have adequate time to review the information and bring questions to the meeting. Staff feels that after the orientation,the five new and existing EDA members will be well versed in the procedure and processes of the EDA and be excited about carrying the programs discussed in the orientation to fruition. ACTION REQUIRED Review the outline of the orientation and provide additional comments to staff concerning other items to include in the meeting. Respect ly sub itted, te,/ ar. ee Smick, City Planner AICP, CNU-A