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AGENDA
REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING
January 27, 2014
6:30 P.M.
CONFERENCE ROOM 170
Todd Larson, Chair; Geraldine Jolley, Vice-Chair
Douglas Bonar, Steve Wilson, Kirk Zeaman
Action Taken
1. Call Meeting to Order
2. Pledge of Allegiance
3. Roll Call
4. Approve Agenda
5. Citizen Comments/Presentations
6. Consent Agenda
a) Meeting Minutes (December 16, 2013 Regular) Approved
b) Approve Bills 12/16/13 — 1/26/14 Approved
c) November 2013 Budget Information Received
7. Public Hearings
8. Continued Business
a) Marketing Plan Discussion Information Received
b) Business Visits 2013 Summary and Plan for 2014 Information Received
c) Summary of 2013 Accomplishments and Economic
Development Strategic Plan Tracking Sheet Information Received
9. New Business
a) Review CDBG Funds 2014 Information Received
b) Approve Joint Powers Agreement—2014 "Open to Business"
Program Approved
10. City Staff Reports/Open Forum/Discussion
11. Adjourn
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AGENDA
REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING
January 27, 2014
6:30 P.M.
CONFERENCE ROOM 170
Todd Larson, Chair; Geraldine Jolley,Vice-Chair
Douglas Bonar, Steve Wilson,Kirk Zeaman
Action Taken
1. Call Meeting to Order
2. Pledge of Allegiance
3. Roll Call
4. Approve Agenda
5. Citizen Comments/Presentations
6. Consent Agenda
a) Meeting Minutes (December 16,2013 Regular) Page 2
b) Approve Bills 12/16/13 — 1/26/14 Page 8
c) November 2013 Budget Page 9
7. Public Hearings -
8. Continued Business
a) Marketing Plan Discussion Page 10
b) Business Visits 2013 Summary and Plan for 2014 Page 12
c) Summary of 2013 Accomplishments and Economic
Development Strategic Plan Tracking Sheet Page 22
9. New Business
a) Review CDBG Funds 2014 Page 30
b) Approve Joint Powers Agreement—2014 "Open to Business"
Program Page 41
• 10. City Staff Reports/Open Forum/Discussion
11. Adjourn
1
MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
Regular Meeting
December 16, 2013
1. CALL TO ORDER
The meeting was called to order by Chair Larson at 6:00 p.m.
Members Present: Larson, Bonar,Jolley, Wilson
Members Absent: Zeaman
Also Present: David McKnight, City Administrator; Kevin Schorruuan, City
Engineer; Cynthia Muller, Executive Assistant
Audience: Vicki Stute, Clyde Rath, Mark Loftus
2. PLEDGE OFALLEGL4NCE
3. ROLL CALL
4. APPROVE AGENDA
MOTION by Wilson, second by Jolley to approve the Agenda. APIF,MOTION
CARRIED.
5. CITIZEN COMMENTS/PRESENTATIONS
6. CONSENT AGENDA
MOTION by Wilson, second by Bonar to approve the Consent Agenda as follows:
a) Approved Meeting Minutes (11/25/13 Regular)
b) Approved Bills 11/25/13 — 12/15/13
APIF,MOTION CARRIED.
7. PUBLIC HEARINGS
8. CONTINUED BUSINESS
a) Final Marketing Plan Report
Mr. Tom Whelan, of Nemer Fieger,presented the draft Marketing Plan. The
recommendation for the first year is to spend most of our time on business
retention and expansion. He recommended asking owners about their business
and how we can help them. The business visits should be scripted, Mr. Whelan
provided a questionnaire to use. The responses should be logged into a database.
The second item is to prepare for opportunities that may be presented from the
outside such as assessing land and buildings for readiness. We need to understand
where the owners of the land are as far as opportunities to bring it forward for
development.
2
EDA Minutes(Regular)
December 16,2013
Page 2
The third item is to get more involved in the region and state where economic
development is concerned. Get to know the site selectors and business owners
who could be looking at our area for business opportunities.
The fourth item is to put forth a better presentation. Make sure we understand
there could be different players. Everyone needs to work together to show a
cohesiveness in our economic development efforts. The first time should be more
of a meeting,be professional. The first meeting should be at their place of
business. Invite them to City Hall for a follow-up if needed. The plan calls for
' two visits/week for one year. We have approximately 250 businesses. Use the
same questionnaire for all meetings. The DCR Chamber executes visits on behalf
of Grow Minnesota. The information collected on the visit becomes an aggregate
data within the Grow Minnesota data base. They can compare within the region
or the state. Mr. Whelan strongly recommended following the same script so we
obtain the same information from everyone. Everyone needs to understand the
intention is to grow Farmington and everyone will benefit.
Member Wilson asked about the status of the City's communication efforts. Mr.
Whelan stated they spent some time talking about inward focus and outward
focus. Inward is to make sure as many people in Farmington as possible know
what we are doing. That is why we build key messages. Site selectors will be
looking for good information specific to what they are looking for. Each site
selector will have different needs. We have to have a very good and clear
understanding of all we have available in the market so as opportunities come our
way we are able to develop a helpful, concise response. Mr. Mark Loftus noted
site selectors need good, fast information and will have sites in the back of their
mind to call because they do not have much time. Their goal is to eliminate as
many sites as they can and get down to a few. We have to find a way to get
information out there; it has to be useful and accurate. Site selectors are real
estate companies and firms that do site selecting. Mr. Whelan noted this comes
back to the first part of where we need to build relationships. Places such as
EDAM and MNCAR are good places to build these relationships.
Member Bonar asked if it would be appropriate to use our in-house
communications and IT staff to set up a multi-mobile approach; Twitter for
persons under the age of 40, Facebook for the boomers, and a website that is
layered appropriately for the site selectors. Mr. Whelan felt all those things are
appropriate. With Twitter 140 characters is not a lot to get your message across,
but you can send links to different things. Regarding the website,the plan
contains examples of two websites that would be helpful. Minnesota will be
bringing on LOIS in the next few months. This does not let us off the hook for
having a website here that is helpful,interesting, compelling. LOIS uses info
graphics. This is good when you need information on the run. It makes the
information more compelling. Anyone can put together a presentation that has
line after line of copy. The more interesting you make it for you audience,the
more likely they will stick with it for a while. We have to be everywhere, but it
3
EDA Minutes(Regular)
December 16,2013
Page 3
has to be planned. It isn't a matter of throwing out a newsletter every six weeks
because the calendar says so. It is putting out a newsletter that has relevant and
new information. If you don't have anything relevant and new,don't put it out
there. Not everything you hear from local businesses will be proprietary and may
be helpful in the newsletters. When site selectors look at Farmington,they are
looking at the businesses that are already here. They want to be part of a mix that
makes sense to them. They want an employee pool that can help them in their
growth. Chances are good before they call the City,they will call a business
owner or the Chamber.
Mr. Whelan reviewed the specific actions tied to the goals.
1. Deepen relationships within town.
Can we manage two calls per week? Mr. Whelan reviewed past call reports
from the last year and they are meaty. We want to make sure we capture all
the information we need to help us with our efforts. Business owners will be
pleased and engaged with the tone of conversations you have with them about
growing business in Farmington.
Build and manage a database.
Prepare sales collateral. We want something to leave behind that is a record
of our visit and gives our intentions for the near term.
Supplemental memento of visit.
Handwritten thank you notes to every contact.
2. We have to educate ourselves on who are the land owners and developers and
what are their interests.
Member Wilson asked how we balance the zoning of the comprehensive plan
with land owners wanting to keep the land in the family. Mr. Whelan stated it
is in our best interest to give them the best information we can. We should
keep a log of similar parcels that have been sold to help them with the value of
the land. It is important we reiterate what is in the 2030 comprehensive plan.
We want to review with them what has come and gone. Mr. Loftus suggested
sharing with the landowners the type of prospects that have been considered.
Land owners want to know what their legacy will be and what will be on their
land. Give them what the possibilities could be,not just selling the land.
Member Jolley agreed the land owners are very agriculture oriented, it is part
of their culture. They are not holding out for price, because that is not a big
value to them. It is important to them that the land stay agricultural. If we are
going to talk with them, we need to meet them at that level and see if a
compromise can be worked out. If we are suggesting a type of development
that doesn't fit into their vision of what their family land should be,we will •
not get anywhere. These are good people and they care deeply for their
community. We have to understand where they are coming from. Member
Wilson stated our short supply is what they have to offer. We are not in
control of that process; it will be on their timetable. Council can allocate
funds to put in sewer, water, streets or we can focus on deepening the business
relationships with commercial/retail where we have an area that is shovel
4
EDA Minutes(Regular)
December 16,2013
Page 4
ready. That may spur interest in the farmers. Mr. Whelan stated we should
treat the land owners as business owners and treat their visits the same as
business visits; script it with empathy for what their interests are,but have the
discussions with them. There is no less reason to start a conversation with
them than there is with any other business owner. Ask them what is their
vision for their land that they had for the 2030 comprehensive plan. Have
ongoing meetings and not wait for an opportunity to come up and then run
over there. It is a very slow process. It takes discipline to have those
meetings and record the information.
Build a database of known owners/developers.
Quarterly meetings with owners of large parcels. •
3. Get connected to site selectors and business owners who conduct site searches
in the area.
On-going acquisition of contact info.
Develop/Implement e-mail marketing campaign.
Make website more user friendly.Not in the 1St quarter. See where LOIS is
at with the state, but make information retrievable on our site. Investigate
over time if there are better ways to present our information.
Conduct market tours as necessary. Drive people around and show them
what the area looks like. Over time do something with City boundary signage
that has more to do with business.
4. Ongoing association with the industry—EDAM and MNCAR conferences.
Attend EDAM Winter Conference, January 2014
Participate as exhibitor at MNCAR expo, October 2014
Attend Upper Midwest Basic Economic Development•Course, Duluth, July
2014
Ongoing IEDC webinars/on-line programs
Creation of exhibitor signage/banners for ongoing use
Mr. Whelan provided a timeline for these activities. Once we have a script for the
business visits they can begin in January. The database would be built right away
and maintained. The first action is to determine who the teams will be. Decide
who the best core will be and make sure at the first few sessions everyone
understands what will be said. Someone will have to make the calls and schedule.
Depending on the nature of the visit, perhaps it is better for someone who is not
so familiar with them to go. EDA members agreed Member Jolley's knowledge
of the community is very helpful with the visits. Member Jolley stated she enjoys
the visits,but our problem is having enough people available to put the team
together; everyone has a full time job. Two visits at a time is a waste of energy.
Once we have the group together, we should try to hit four visits at a time. Visits
are always longer than a half hour.
Mr. Whelan felt what has been presented is manageable for this group. The EDA
has the spirit and aggressiveness for it. This group will ensure we have the right
5
EDA Minutes(Regular)
December 16,2013
Page 5
champions in town and can have a frank discussion with anyone who is not on
board. Mr. Whelan stated his firm will offer 40 hours of pro bono time during the
next year on the creative side. He would also like to be part of a few of the
business visits and attend conventions with us. He asked the EDA to endorse this
plan.
Member Jolley recalled Mr. Whelan mentioned looking at notes from business
visits. She asked what has become of the follow-up from the visits and are we
getting back to them on any concerns. City Engineer Schorzman stated staff has
followed up on any concerns,but was not aware of the status of the database.
Member Bonar recalled the EDA did see a list of business visit comments some
time ago. Staff will follow-up on this.
Member Wilson felt the plan is aggressive, but likes it. We should not shelve this.
He agreed everyone does have a full time job, but perhaps we need a couple core
groups that are able to be in the know. He had a concern that the budget estimate
could be low and perhaps a half time position could be needed to drive this, but
that may not be feasible in the budget.
Mayor Larson noted one thing that struck him was how much we lack
• involvement in economic development in other groups out there. Member Wilson
stated we have been involved with memberships,but not very active.
Ms. Vicki Stute, DCR Chamber, asked about the next steps for the EDA in terms
of the report and action items. Mayor Larson felt the next step would be making
phone calls to set up business visits and put together a questionnaire. Member
Wilson stated the framework for the plan is here, but we need a group of people
thaf will go out the door with the plan. Mr. Clyde Rath, President of the FBA,
• stated from a planning standpoint, he would like to see something for one to two
years and three to five years. When you look at the land to the west and what has
to be done to get a parcel sold, that will not happen in two years. He sees this as
one part of the plan,but doesn't see other elements for short term. Mayor Larson
suggested that could be discussed at the January and February EDA meetings to
give us time to digest what we need. Member Jolley stated there are a lot of
action items that need to have someone to do the follow through. She doesn't see
that we have enough staff with time to do this. Mayor Larson stated we can
approve this marketing plan, and then it is up to us to put together the action plans
from it.
MOTION by Bonar to acknowledge receipt of the marketing plan. Motion died
for lack of a second. Member Wilson viewed it as accepting the marketing plan.
A marketing plan was put together that we authorized, it was briefly reviewed.
Member Bonar would agree as long as accept doesn't mean we will take action on
it. He agreed with Member Jolley that we have a timeline and a prospective
budget,but we don't have a team. MOTION by Jolley, second by Bonar to table
final action until the January EDA meeting. APIF,MOTION CARRIED.
6
EDA Minutes(Regular)
December 16,2013
Page 6
9. NEW BUSINESS
10. CITY STAFF REPORTS
11. ADJOURN
MOTION by Wilson, second by Bonar to adjourn at 6:55 p.m. APIF,MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant
•
7
EDA MEETING JANUARY 27, 2014
R55CKS2 LOGIS600 CITY OF FARMINGTON 1/23/2014 8:43:28
Note: Check Amount may not reflect actaul check total due to sequence of data Council Check Summary Page- 1
12/16/2013- 1/26/2014
Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU OW Sub Subledger Account Description BU Description Co Dept Div
126692 12/27/2013 100263 CAMPBELL KNUTSON
1,307.70 NOV EDA LEGAL SRVS,NON-RET 124549 1852-DOOG NOV'13 2000 6403 LEGAL HRA/ECONOMIC DEVELOPMENT 02000 03
1,307.70
126685 1/3/2014 112404 JOLLEY,GERALDINE
110.00 2013 EDAMTGS STIPEND 124924 2013 EDA STIPEND 2000 6401 PROFESSIONAL SERVICES HRA/ECONOMIC DEVELOPMENT 02000 03
110.00
126726 1/3/2014 110694 WILSON,STEVE
110.00 2013 EDAMTGS STIPEND 124925 2013 2000 6401• PROFESSIONAL SERVICES HRA/ECONOMIC DEVELOPMENT 02000 03
STIPEND-WILSON
110.00
126730 1/3/2014 113389 ZEAMAN,KIRK
80.00 2013 EDAMTGS STIPEND 124923 2013 2000 6401 PROFESSIONAL SERVICES HRA/ECONOMIC DEVELOPMENT 02000 03
STIPEND-ZEAMAN
80.00
126866 1/24/2014 100263 CAMPBELL KNUTSON
188.50 DEC'13 EDA LEGAL SRVS NON-RET 125356 1B52-000G DEC'13 2000 6403 LEGAL HRA/ECONOMIC DEVELOPMENT 02000 03
188.50
126873 1/24/2014 100238 ECONOMIC DEVELOPMENT ASSOC OF MN
200.00 1/23 EDAM WINTER CONFR 125461 JAN 23 EDAM CONFR2000 6470 TRAINING&SUBSISTANCE HRA/ECONOMIC DEVELOPMENT 02000 03
200.00
Report Totals 1,996.20
•
CO
•
' $ 60,844
2013 %
Fund Description Budget Jan Feb Mar Apr May June July Aug Sept Oct. Nov Dec Total Balance Received
2000 ECONOMIC DEVELOPMENT AUTHORITY
Fund Balance $ 60,844 $ 65,114 $ 68,830 $ 73,143 $71,798 $ 76,119 $ 98,023 $ 93,019 $ 113,640 $ 129,184 $ 130,224 $ 129,678
Revenues
4020 Tax Increment Excess 15,747 15,747 $(15,747)
Intergovernmental Revenue $ - $ -
4404 Federal(CDBG) 15,000 (7,320) 7,320 15,000 (15,000)
State - -
Other - -
4460 County Miscellaneous - - -
4516 Administrative fees - - -
4950 Investment Interest 2,200 178 176 174 172 170 168 166 164 160 160 156 1,845 355 83.85%
4960 Gain/Loss Invest MKT Value
4975 Rental Income - - #DIV/01
5010 Sale of Assets - - -
5205 Operating Transfers 50,000 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 15,547 4,167 4,167
5350 Miscellaneous Revenue - - &DIV/01
Total $ 52,200 4,345 I 4,343 1 4,341 I 19,339 I 4,337 I 20,082 I (2,987)1 11,851 1 15,707 I 4,327 I 4,323 1 - $ 16,845 $(14,645) 3227%
2011 %
Budget Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Balance Expended
Expenditures
6250 Other Supplies 42 42 (42)
6401 Professional Services 8,220 5,000 3,500 8,500 (280) 103.41%
6403 Legal Services 2,000 58 609 667 160 319 145 87 1,308 3,352 (1,352) 167.61%
6421 Municipal Services - -
6422 Electric 400 17 17 17 16 16 18 17 18 18 18 172 228 42.94%
6423 Natural Gas - -
6428 Insurance 1,000 - 1,000 0.00%
6450 Outside Printing - -
6455 Legal Notices Publications - -
6460 Dues&Subscriptions - -
6470 Training&Subsistence - - &DIV/01
6485 Mileage Reimbursement - - &DIV/ol
6492 Advertising - -
6515 Building Repair Service - -
6550 Developer Payments 15,000 3,200 18,200 (18,200)
6570 Programming Expense - • - &DIV/01
7310 Operating Transfers 33,500 - 33,500
7420 Other Expenditures 12 (9,307) (9,295) 9,295
Total 5 45,120 $ 75 $ 626 $ 28 20,683 16 177 $ 17 $ (8,970) 5 163 $ 3,287 $ 4,888 $ - 5 20,971 $ 24,149 46.48%
Fund Balance 65,114 68,830 73,143 71,798 76,119 96,023 93,019 113,640 129,184 130,224 129,678 129,678
Revenue and Expenditure Descriptions
November Revenues
4950 investment Interest Interest portion of Vinge loan payment
5205 Operating Transfers EDA Levy Transfer
November Expenditures
6250 Other Supplies Supplies for Chamber Event
6401 Professional Services Hotel Feasibility Study
6403 Legal Services November legal services Campbell Knutson-Vmge Building Contract
$45,000 of the fund balance amount is In loans to Vinge Tile.
Cash amount is$60,000 to pay outstanding bills,then any remaining amount Is available for business subsidies.
Co
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800•Fax 651.280.6899
•
www.ci.farmington.mn.us
TO: Economic Development Authority
FROM: Cynthia Muller,Executive Assistant
•
SUBJECT: Marketing Plan Discussion
DATE: January 27,2014
INTRODUCTION/DISCUSSION
The Marketing Plan was presented at the December 16, 2013, meeting. Due to time constraints,
discussion on the plan was limited. The main purpose of the January 27, 2014, meeting is to
allow the EDA to have an open discussion on their thoughts regarding the plan. Some of the
discussion that occurred in December was in regards to gaps in the plan. Items like action steps,
responsible parties, etc. are what we are seeing as gaps in the plan.
The Marketing Plan sets forth the following goals for Farmington:
1. Deepen relationships with Farmington business owners through an aggressive Business
Retention and Expansion program.
2. Get closer to land owners/developers in order to be better prepared for industrial
development in the City.
3. Get connected to site selectors and business owners who conduct site searches in the area.
4. Get smarter about the industry through active participation in industry associations like
Economic Development Association of Minnesota(EDAM) and Minnesota Commercial
Association of Realtors (MNCAR).
Some of the gaps noted by the EDA and City staff by individual goals include:
Action Goal Timeline Personnel
Business Visits—
Determine Team 1
Number of Visits/Month
Script for business visits 1 .Lee/Cindy
Develop database for visit comments 1 Lee
Meetings with land owners 2
Connect with site selectors 3
Attend Conferences—EDAM and MNCAR 4 Lee
Update available sites on website and Cindy
MnPro/LOIS 2 & 3
10
•
The timeline and personnel completing the steps should be discussed by the EDA. More gaps
and action steps may be added as a part of the EDA's discussion.
Some additional discussions the EDA may want to consider include whether or not to take Mr.
Whelan up on his offer of 40 hours of donated work, are you satisfied with the work enough to
approve payment,and other issues you see as relevant to the Marketing Plan.
ACTION REQUESTED
Discuss the Marketing Plan and issues related as a part of the continued discussion.
Respectfully submitted,
Cynthia Muller
Executive Assistant
11
4:746111k,
vvinpiy�� City of Farmington
430 Third Street
k417-j—,,,,'x' � 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: Business Visits 2013 Summary and Plan for 2014
DATE: January 27,2014
INTRODUCTION/DISCUSSION
The Business Retention and Expansion(BR&E)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.
In 2013,the EDA decided to reduce business visits to once per month. The EDA visited 17
businesses in 2013. Staff is proposing to increase the number of visits in 2014 to meet or exceed
the 48 visits performed in 2012.
Summation of comments occurring at Business Visits in 2013:
• Appreciated visits from Farmington EDA.
• Concern expressed about high commercial taxes in Farmington.
• Some businesses have expanded or are contemplating expansion.
• Request assistance to get information out to the community to bring in new members to
the VFW.
• Farmington needs business incentives for new and expanding businesses.
• Businesses enjoy being in Farmington.
• Some businesses–employees don't live in 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.
• Businesses want wayfinding signs.
12
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.
2014 Schedule of Business Visits
The proposed 2014 Schedule for Business Visits is attached. 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 2013 summation and forward any comments concerning business visits in 2014.
Respectfully submitted,
Lee Smick, City Planner
AICP, CNU-A
•
13
Date of Visit Business Comments, Concerns Follow-up
Met with Ron Ersfeld. The biggest concern of the
membership is getting out the word to the community to
1 3/13/2013 VFW recruit new members. They are proposing to install flags on
each light pole in the downtown and Elm Street. They will be
asking business owners if they want to contribute to the
purchase of a flag.
Michelle Overby canceled the visit and stated that she will be
2 3/13/2013 Shidor closing her store on April 1, 2013 so that she may follow
other pursuits.
Tammee Kuehn is the owner of a billing service that
prepares bills for ambulance companies. She started in this
business in the 1980's working at Sanford Hospital and then
branched off to create her own company from her house 25
years ago. She then moved to 309 Oak Street in the
3 3/13/2013 Expert T Billing downtown. She out grew this location and has recently
located her business at 400 Third Street at the southwest
intersection of Oak and Third Streets(front part of Dueber's
Building). She currently employs seven and she has room
for one more employee in the future with the opportunity of
expanding the number of employees to vacant office space
in her building.
Paul Often owns the Dueber Building and 309 Oak Street. I was contacted by Mr. Often in
He is preparing plans to reduce the Shidor space into three October and he was wondering if the
smaller offices. He would build a tenant space to their size City would allow a homeless shelter to
4 3/13/2013 Paul Often needs. The plan is to cut doors into the spaces along Third be located in his building to at least
Street. He is looking for future tenants to occupy these have occupancy in the building. I told
• spaces and is open to the EDA offering suggestions on the him that that was not an allowable use
open spaces. He will give the building façade a facelift as in the B-2 district, but pursue this idea
soon as the offices are constructed. with the CDA.
Page 1 of 7
.p
Jeremy LaBeau, owner, met the team to discuss his
company's business operations. Installed Building Solutions
has been in operation since 2002 and is a full service
insulation company that specializes in sound control, spray
foam,waterproofing, exterior and interior foundation
insulation and drain tile. Mr. LaBeau stated that recently they
have added an additional service, the interior solutions
division,which offers the installation of shelving, shower I spoke with Jeremy in June to discuss
doors, mirrors and other bath accessories. Installed Building his additional space needs. I
Solutions has been in it current location fully for contacted Al Laurer to determine if he
5 3/21/2013 Installed Building approximately 2 weeks after relocating from its previous had space for IBS in his building and
Solutions location at 517 1st Street. The company has seen increased he stated that he had 7,000 square feet
growth and the need for additional space and that is why the along with a dock to the space. I
company decided to relocate into the substantially larger talked to Jeremy about this discussion
(60,000 square foot)space in the industrial park. The and gave him the contact for Laurer.
company currently has 62 employees and will likely need to
add additional employees in the near future to meet the
demand of the growing business. The one concern that was
raised by Mr. Labeau during the visit was regarding the
commercial taxes within the community. The high
commercial tax rate in Farmington makes it difficult to attract
new businesses.
Dr. Kris Nelson met with the team. The business has been
open for over 50 years when Dr. Nord provided services
throughout the area. He mainly provided services on large
farm animals, mostly making house calls. Dr. Nelson
6 5/28/2013 Farmington Veterinary currently works on small animals at the clinic rather than
Clinic services to large farm animals. There are currently ten dog
groomers employed at the clinic and three doctors at the
business. They recently signed another five year lease with
the building owner. Dr. Chris is interested in finding a
building of her own after the lease is up.
—• Page 2 of 7
01
•
•
Dr. Brian Betts recently purchased the Radler Chiropractic
Clinic and opened his business on May 1, 2013. He ran his
own clinic in South Minneapolis for 11 years. He was later
an associate for clinics in Eagan, Lakeville, Edina, and
7 5/28/2013 Betts Family Bloomington. Dr. Betts has three people on staff which I have sent three new patients to his
Chiropractic includes a massage therapist. Adam Steffen is the therapist office including myself.
and he grew up in Farmington. Dr. Betts currently resides in
St. Paul and enjoys the open space of this area as he drives
south. Dr. Betts will be changing the signs on the building
and monument soon.
Bob Blume and Brian Anderson stated that their product is a
rubber/plastic sheeting that covers equipment, etc., and is
also used in space. Their product is on the International
Space Station as well as numerous satellites. They also
construct portable hyperbolic chambers for athletes, autistic
8 6/13/2012 Aerospace Fabrication children, and soldiers when they come back from certain
missions. They have 73 employees currently and they are
running two shifts. They do have room for expansion in the
rear of their building. They enjoy being in Farmington, and
they are in favor of curb and gutter design rather than ditches
in the park.
Page3of7
are
Ivan and Janet Janssen opened their business 18 years ago.
They currently sell 300 cars per year. Their busy sales time
is January through April. Forty percent of their customers
are from the local area and 10% are from the Internet. They K& K Auto Ranch received approval
ensure that before a car is sold to a customer that it's in for a CDBG loan of$3,400 on October
good condition. The cars are mostly priced from$3,000 to 21,2013 to repair the roof to the
9 5/28/2013 K&K Auto Ranch $5,000, but they do offer specific cars ordered by customers overhang on their building. K&K Auto
at a price of over$10,000. They don't do any financing, but Ranch completed their project in mid-
they work closely with Castle Rock Bank, sending their October and was reimbursed.
purchasers there for financing. The property used to be a
Phillips 66 station. The overhang needs replacement and it's
a code violation, therefore, the Janssen's will be applying for
a CDBG Commercial Rehab Grant soon.
10 5/26/2013 • Farmington Mr. Gerten was not at the meeting. Staff will reschedule.
Greenhouse
The team met with Colin Garvey at his shop on 5th.Street.
Colin has had a business in Farmington since 1983. He is
very concerned about the high taxes that businesses have to
pay in Farmington. He also sees more businesses moving
11 5/26/2013 CG Construction& to the townships because of those taxes. He's also
Landscape Depot concerned about Castle Rock Township's enforcement of
their business ordinance. He would like to see the orderly
annexation areas in Castle Rock and Empire Townships
come into the City all at once rather than piecemeal as it's
occurring now.
Page 4 of 7
v
The team met with Sue and Bill, renters of the repair shop.
They have been in business for 9 years and were happy to
have the City visit. Bill is concerned about the drainage of
fluids into the water system from other repair shops in the
City. He stated that his shop has a drainage system and he
wants other shops to be in compliance.Additionally, he is
•
concerned about the amount of snowmobiles using 3rd
Rambling River Street to get to Celt's or Kwik Trip. He's concerned about
12 5/26/2013 Repair accidents that have almost occurred in his driveway when
backing vehicles out of his shop. He is requesting that the
City look into a snowmobile trail behind his shop to keep
them off of 3rd Street. He says that the street is being
damaged from the blades and studs on the snowmobiles.
He would also like the City to enforce Mr. Garvey's
Landscape Depot property in requiring him to install concrete
on his lot as required in his CUP to open a truck repair
center. Staff is currently working on this issue.
The team met with Dustin, the manager of the bowling alley.
The owners, Mike and Eric, have been in business since
2007. They currently are doing a remodel in the bar area
13 5/26/2013 Farmington Lanes including the resurfacing of walls. They plan on remodeling
the bar itself to make it larger as well as remodeling the
outdoor patio area. They have 15 employees working at
their business. The recession brought the interest of bowling
down; however, there are more customers returning.
Page 5 of 7
oo
The team met with Brandon,the owner of the restaurant. He
stated that things are getting very busy due to the removal of
a meeting space at the old American Legion (now
Carbone's). He opened the pub 3 years ago. He is
proposing to expand the outdoor patio next to the railroad
tracks to make use of the shade on that side of the building
14 5/26/2013 Celt's Pub rather than on the front of the restaurant. He currently is one
of the few restaurants in town that provides a breakfast meal.
He asked about the possibility of him or someone else
opening a liquor store in the potential strip center on the
southeast side of the roundabout on TH 3 near the Empire
Township ballfield. He would like staff to check into how
many miles a liquor store can be next to another liquor store.
Is this a state law?
The team met with David Seefeldt, Operations Manager and
Paula Westerman, Distribution Center Manager. The
attached flyer provides information on the company.
Approximately 25%-50%of their employees live in
Farmington. Ernployees go through a 60-day in-house
training to acquaint them with their duties. Their biggest
sales holiday is the Super Bowl. They started a new line this
year with Greek products. They do not offer tours of their Staff is discussing the salt issue with
15 10/24/2013 Kemps operation due to liability issues. If they should want to the property owner Marty Kiehm at
expand their operation in the future, money and surrounding Dakota Storage.
land would be an issue. They own a parcel of land near
Rambling River Park and would be interested in selling that
to the City for a parking lot for the park. In the last five years
they have made$10 million in improvements. Their
distribution center is on TH3 and the building is owned by
Marty Kiehm. One issue at the distribution center is the
drainage from nearby salt storage.
Page 6 of 7
co
The team met with Sunny Bowman. The expansion of their
building is moving along very well. Their pylon sign will be
installed in the spring. They would have liked a larger sign,
but the variance was based on the speed of traffic on the
frontage road rather than TH3. The building expansion will
allow them to offer more of the same products. They will be
adding five employees to work inside and three to five yard Staff is currently researching job grant
16 10/24/2013 Dakota County Lumber employees within the next three years. With the current yard opportunities to get information back to
Company space they can double their sales revenue from$11 million Sunny.
to$20 million. They are being proactive by going out to
obtain builders, and not waiting for builders to find them. If
they were to expand further, they would not move, but add a
•
second location. She mentioned Lee Smick was very helpful
with the grant process and had no problems with the City.
She did ask if there were any grants available for hiring
employees. Staff will contact her about this.
The team met with Gary Gruber, Manager. This restaurant
has changed dramatically from the previous owners and the
inside has been completely redone. Their business is very
directed towards families. They have an outside deck with
seating, a pavilion area in back and volleyball courts. He
mentioned liquor is only 25%of their sales and they mainly
focus on food. They do have a corner entertainment area for
17 10/24/2013 Carbone's karaoke and acoustic music and would like to enlarge this A ribbon cutting was held on 11/14/13.
area. They started a delivery service three weeks ago during
the evening hours. Depending on the response, they may
expand those hours. They offer a Sunday brunch buffet and
have 60—70 customers for that. They just hired three more
employees for a full staff and have a total of 35 employees.
Staff explained the process for a ribbon cutting and we will
be in contact with him.
ro Page 7 of 7
0
2014 BUSINESS RETENTION & EXPANSION PROGRAM - BUSINESS VISITS
•
DATE GENERAL LOCATION TYPES OF BUSINESSES ATTENDEES
February
Week of February 24 Southeast TH 3 Dunn Brothers, Andrew Childs Farmers
Insurance
March
Week of March 10 Downtown Burville Law, VFW, Buds & Bytes
April
Week of April 14 Downtown Farmington Bakery, Expert T Billing, Cow
Interrupted
May
Week of May 12 South Industrial Park HOBO, EDCO
June
Week of June 16 North Pilot Knob Road Kwik Trip, Fantastic Sam's
July
Week of July 14 Downtown Lillian's, Subway, Long Branch
August
Week of August 11 East Industrial Park Crop Characteristics, JIT
September
Week of Sept 15 Main &TH 3 Bischel Construction, Pellicci Ace Hardware
October
Week of Oct 13 Downtown Vintage Marketplace, Heikkila Studio
November
Week of Nov 10 TH 3 &TH 50 Impact Auto, Townsedge Barber & Salon
40ARMV�, City of Farmington
° 430 Third Street
. „ Farmington,Minnesota
°A,'�1a�� 651.280.6800•Fax 651.280.6899
�'"°"°l'� www.ci.farmington.mn.us
TO: EDA Members
FROM: Lee Smick,AICP, CNU-A
City Planner/Economic Development
SUBJECT: Summary of 2013 Accomplishments and Economic Development Strategic Plan
DATE: January 27,2014
INTRODUCTION/DISCUSSION
Once again, it's been a great year for advancing economic development strategies in
Farmington. The Economic Development Authority(EDA) and staff have been productive in
developing a variety of innovative and advanced economic ideas in 2013. 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(EDSP)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. In January of 2013 the action steps were
launched to meet the goals promoted in the priorities categories and continued some steps from
2012. In all,there were 74 action steps. The following activities were completed in 2013:
1. The Business Visits Plan 2013 was approved on January 28, 2013
•
2. The Joint Powers Agreement to hire the MCCD is approved on January 28, 2013
3. EDA approved Triton Properties CDBG on January 28, 2013 —Awarded $7,500
4. An EDA Orientation meeting for new members was performed on February 20,2013
•
5. EDA Powers change included 2 Council Members and 3 Residents on February 25,2013
6. Open to Business Program started at the City on February 26, 2013
7. EDA approved Baldy's BBQ Business Development Grant on February 28, 2013 -
Awarded$15,000
8. A Bank Summit was held on March 20, 2013, with all area banks in attendance
•
22
9. The Business Attraction Team(BAT) was appointed by the EDA on March 25,2013
10. BAT met five times between April 11,to June 6, 2013
11. Business Subsidy Plan is tabled until the Marketing Plan is completed on May 28,2013
12. BAT priorities are presented to the EDA on June 24, 2013
13. Requests for proposals to hire a marketing firm is approved on June 24,2013
14. Cobblestone Hotel presents information to EDA on August 7,2013
15. Marketing Consultant(Nemer Fieger) is approved on August 7,2013
16. Marketing Plan Agreement is approved on September 23, 2013
17. Marketing Plan SWOT analysis is performed on September 24, 2013
18. CDBG Grants awarded to Dakota County Lumber($19,000), K&K Auto ($3,200),and
Long Branch($14,720.64) on September 23, 2013, and approved by the City Council on
October 7, 2013
19. An update of the Marketing Plan was discussed on October 28, 2013
20. An update of the Marketing Plan was discussed on November 25,2013
21. A final presentation of the Marketing Plan was discussed on December 16,2013
The EDSP tracking sheet is also attached to this document showing actions completed, in-
process 2014,ongoing, and developing in 2014. A total of 27 action steps have been completed
since 2012. The in-process 2014 categories include the following actions:
1. Development of a revolving loan fund.
2. The entire section of the Marketing Priorities is in process for 2014 (additional
information will be discussed in a separate memo titled"Approval of Marketing Plan".
3. Provide an excitement around the progress of Farmington's economic development
strategies.
4. Develop business events (e.g. speaker meetings, consultants, business appreciation lunch)
for local businesses.
5. Compile information for business prospects.
6. Demonstrate profitability opportunities for prospective businesses,market targets,recruit
businesses to assist existing businesses, provide shovel ready sites through the
construction of infrastructure at the northwest/50 industrial park. •
23
ACTION REQUIRED
Review 2013 summary of accomplishments and discuss next steps in Economic Development
Strategic Plan 2014.
Respectfully submitted,
Lee Smick, AICP, CNU-A
City Planner/Economic Development
24
1-27-14
ECONOMIC DEVELOPMENT STRATEGIC PLAN - Tracking Sheet
•
Action Measure Responsible 2012 2013 Status
Party.
Priority#1: ORGANIZATIONAL PLAN - UNITE I II III IV I II III IV
1.Review components in economic development strategic Strategic Plan is finalized-
plan:
continues to be working EDA, Planning Completed
document.
a) Review existing Mission and Vision Statements. Reviewed,revised if needed EDA, Planning Completed
and implemented.
b) Review SWOT analysis for 2012 Strategic Plan. Analysis is agreed upon. EDA,Planning Completed
2. Define roles of staff and EDA Board,and identify One voice represents EDA, Planning Completed
stakeholders. community.
a) Determine duties of EDA Board. EDA provides guidance for EDA, Planning Completed
economic development.
b) Determine duties of EDA staff. Staff carries out duties. EDA,Planning Completed
Stakeholder duties
c) Identify stakeholders and determine role and duties. determined. EDA, Planning Completed
Farmington becomes a
3. Develop a policy for EDA Board for a"business friendly" preferential location for EDA x x In process-2014
approach to economic development. business development in the
region.
a) Remove barriers to conducting business within the city. New businesses locate in EDA,Planning Completed
City.
b) Improve the regulatory environment for businesses by
ensuring that development review process and other C/I development review is Planning x x x x x Completed/Ongoing
policies are streamlined,transparent,and consistent.
streamlined.
c) Provide owners/developers the opportunity to meet Staff is introduced in one
with staff associated with project for kick-off meeting. meeting and most questions Planning,Staff x x x x x Completed/Ongoing
are answered.
4.Ensure local regulations work to benefit economic Downtown Business Planning,
growth. Standards have positive Building x x x x x Completed/Ongoing
effect on businesses. Inspections
a) Prepare text amendments within reason when process
is slowed. Code reviewed weekly. Planning x Completed/Ongoing
b) Continue to evaluate the 30-Working Day Development
Review Process to determine inefficiencies or Evaluations monthly. Planning x x x x x Completed/Ongoing
improvements to be made.
Page 1 of 5
1-27-14
c) Consider formalizing a "development assistance"
sponsor for each case. This representative would be the Point person will assist that
Planning Completed
primary point of contact for an applicant, and would help process to streamlined.
the applicant resolve issues throughout the process.
d)The City will create an updated "Doing Business Guide"
to assist businesses with obtaining services, including, for Guide will clarify steps. Administration, Completed
example,when licenses and permits are needed,a timeline Planning
describing the process for approval and associated fees.
e)Research electronic plan review implementation. Planning x Ongoing
(f) Continue to coordinate with the State health Contact Health department Building
department to facilitate compliance with regulations that x x x x x Ongoing
impact businesses. concerning easy review. Inspections
Survey will allow
g)Create an exit survey for business owners. measurement in how City is Planning Completed
doing business.
5.Prepare summary of funding sources for supporting
operations and management of economic development Funds endorse multiple x Ongoing
initiatives. business ventures.
a) Devise plan to pay down the negative fund balance. Balance has excess for EDA, Completed
incentives. Administration
b) Identify grants,loans and technical assistance to fund Grants and loans are Administration, x x x x x Ongoing
•
economic development. granted. Planning
c) Develop a revolving loan fund to finance attraction of Projects are funded through
exiting business expansion projects especially for those in incentives provided by the Administration, x x x x In process
the City's"new target category"areas. city. Planning
2012 2013
Priority#2: MARKETING - PROMOTE I II III IV I II III IV
1.Determine a unified message. Shows Farmington is open EDA,Planning, x x x x In process-2014
for business. BAT
Brand sent throughout the EDA, FBA,
a) Work with GROW Farmington to determine final brand. x x In process-2014
region. Chamber
b) Name commerical districts. Unify areas through EDA,Planning, x Developing-2014
recognized districts. BAT
2.Identify industry sectors to target(i.e.industrial,retail, Sectors of businesses EDA,Planning, x x x x In process-2014
office . tar:eted locate in here. BAT
a) Brainstorm types of desired industry. List of desired needs in EDA,Planning, x x In process-2014
community. BAT
Determine which industry EDA,Planning,
b) Choose priority industry to market. x x In process-2014
will be heavily marketed. BAT
N
a' Page 2 of 5
1-27-14
c) Ask residents about shopping needs and review 2007 Ask during calls for planning
Planning x x x x In process-2014
Market Study issues.
3.Prepare a marketing plan. EPA,Planning x x x x In process-2014
a) EDA is questioned on validity of 2007 marketing plan. Determine if plan is needed. EDA x x x x In process-2014
b) Additional steps will be provided if plan is desired. Determine if plan is needed. x x x x In process-2014
4.Create a"shop local"program. GROW Farmington Completed
a) Discuss campaign of targeting local residents and Funding is determined and EDA, FBA, x x x x x In process-2014
employees to"shop local". brochures are sent. Chamber
b) Educate the public about the economic impact
of shopping in town vs.out of town.Run the Residents buy products in EDA,FBA,
sample ad in the Farmington Independent:"Ten town. Chamber x x x x x In process-2014
Reasons to Shop Local." Market benefits of"shop
local"awareness to residents.
c) Increase business to business purchasing. Businesses work together EDA,FBA, x x x x In process-2014
for products. Chamber
d) Discuss creative ways to improve awareness of local
business offerings such as meet merchants campaign,
business spot light at Council meetings,anniversary of Local business is supported. EDA, FBA, x x x x x In process-2014
businesses at Council meetings,Farmington website, Chamber
videos.
2012 2013
Priority#3: BUSINESS RETENTION AND EXPANSION - UNITE I II III IV I II III IV
1.Define the structure of a business retention and
BR&E program is in place. Completed
expansion program.
a) Determine objective for BR&E. We know why we are doing EDA,Planning Completed
this.
b) Determine staffing,structure of visits,dates for visits, Have structured program to EDA, FBA,
follow up with identified issues or concerns,and reporting deal with existing Chamber, Completed
of results from each visit. businesses. Planning
EDA,FBA,
Stakeholders are important Completed
c) Determine the stakeholders in the process. role. Chamber, Com p
Planning
Provide atmosphere of
2.Create an environment where businesses can prosper excitement for the progress x x x x x In process-2014
and grow. of Farmington through the
GROW group
a) Proactively contact local businesses to provide support Utilize phone calls,emails,
and assistance. and"stop bys"to connect, Planning x x x x x Ongoing
MCCD
Page 3 of 5
1-27-14
b) Hold sponsored entrepreneur events(e.g.speakers, Events allow businesses to
consultants,business appreciation lunch)for local learn more and connect EDA,Planning x x In process-2014
businesses. with others
c) Make website user friendly. Support is at your fingertips. Staff x x x x x Ongoing
3.Develop partnerships throughout the region. Connections are important. x x x x x • Ongoing
a) Attend EDAM seminars,classes,etc to make
connections within the metro. Knowledge is power. Staff,Planning x x x x x Ongoing
b) Meet potential business owners at the Dakota Regional
Staff meets with and makes
Chamber events. connections with ex. Staff,Planning x x x x x Ongoing
businesses
4.Develop a program for regular open communication Events allow businesses to
between local officials and existing business owners. learn more and connect x x x x x Ongoing
with others
a) Provide officials with pre-printed"thank you"cards for The personal touch is
Planning x x x x x Ongoing
business visits. important.
b) Develop Rapid Response Team of Economic
Development Partners to respond to needs of existing Turnaround time is. Planning Completed
businesses. important.
Be proactive about
5.Prepare a redevelopment plan for the downtown area. redevelopment in the Developing-2014
downtown.
a) Prepare application for APA Community Assistance APA will prepare plan if
Planning Developing-2014
Program. chosen.
b) Research community planning grants(Met Council,
CDBG) Funding for plan. Planning x x x x x Ongoing
c) Develop community awareness and support for an Mission and Vision of
Planning Developing-2014
active redevelopment process. redevelopment plan.
2012 2013
Priority#4: BUSINESS RECRUITMENT - BRAND I II HI IV I II III IV
1.Create a business attraction team. Build ambassadors to the EDA,Planning Completed
community.
a) Determine participants on team. Who are they? EDA,Planning Completed
b) Determine Mission and Vision of team. Where is the team going? EDA,Planning Completed
c) Identify desired business sectors. Know who you want. EDA,Planning Completed
d)Compile information of interest to business prospects. Show them who we are? EDA, Planning x x x x x In process-2014
e)Demonstrate Farmington as a profitable place to do
business. Show them what we can do. EDA, Planning x x x x x In process-2014
f) Determine workforce supply in region to ensure jobs to
businesses. Research the area. EDA,Planning x x x x x In process-2014
00
Page 4 of 5
1-27-14
g) Determine if City can/should provide incentives to
potential businesses. How can we help? EDA,Planning x x x x x In process-2014
2. Develop marketing initiative to attract targeted
businesses and jobs. We get new business. x x x x x In process-2014
EDA, FBA,
a) Determine whom to target for marketing. Let them know we're here. Chamber, x x x x x In process-2014
Planning
Brokers know that we are Administration,
b) Contact brokers weekly. x x x x x In process-2014
here. Planning
3. Recruit business to serve other downtown businesses. Business thrives when x x x x x In process-2014
working off of each other.
a) Build a stronger downtown business community, EDA,FBA,
retaining cash flow and the profitability of downtown Meet with businesses. . Chamber, x x x x x In process-2014
businesses. Planning
b) As more goods and services needed by the residents are EDA, FBA,
available,the community will be less inclined to travel to Business thrives when Chamber, x x x x x In process-2014
working off of each other.
neighboring communities. Planning
4. Provide"shovel ready"initiatives(discuss the city's role) Lots are sold and developed EDA Planning x x x x x In process-2014
to facilitate future commerce park development. in Industrial Park West.
a) Review other"shovel ready"communities in the metro. Research their process. Planning x x x x x In process 2014
b) Procur funding for infrastructure installation at
Industrial Park West. Shovel ready is funded. EDA Planning x x x x x In process-2014
c) Facilitate an open discussion with land owners of the
future industrial park to understand their future plans and Determine if owners want Staff x x x x x In process-2014
timeline. to sell.
d) Assist in bringing lots to plat. Collaborate with
stakeholders. EDA Planning x Developing-2014
e) Develop structure to proactively assist in gathering key Collaborate with EDA Planning x Developing-2014
land pieces together. stakeholders.
f) Infrastructure is installed. City funds infrastructure. EDA Planning x Developing-2014
N
Co
Page 5 of 5
VW/ti��► City of Farmington
325 Oak Street
Farmington,Minnesota
%A 41/1111P 09”4C, 651.463.7111 •Fax 651.463.2591
www.ci.farmington.mn.us
• TO: EDA
FROM: Lee Smick,AICP, CNU-A
City Planner/Economic Development
SUBJECT: Review CDBG Funds 2014
DATE: January 27,2014
INTRODUCTION
The City has been informed by the CDA that it will be receiving an estimated$38,867.40 in
Community Development Block Grant(CDBG) funds for Program Year 2014 (July 1,2014—
June 30, 2015). To secure the grant money that is available,the City must prepare and submit an
application that specifies eligible activities or projects (see attached Exhibit A)to which the City
intends to allocate the available funding. A completed application is due to the Dakota County
Community Development Agency(CDA)by January 15, 2014, accompanied by an approved
City Council resolution. Typically,the EDA reviews the CDBG application;however, staff did
not receive the estimation amount from the CDA until December 26,2013. Therefore, on
January 6,2014,the City Council approved the allocation of CDBG funds in order to meet the
deadline.
Annually,the City receives federal CDBG funds which are distributed by the CDA. In 2013,the
allocation amount was $43,186. The CDA anticipates a 10%reduction on the 2014 HUD budget
for CDBG funds. Farmington's 2014 CDBG allotment is estimated to be$38,867.40. However,
this amount may change as HUD finalizes its budget in 2014.
DISCUSSION
Proposed Activity
City staff is proposing that the estimated$38,867.40 be allocated to the Commercial
Rehabilitation program because this fund was largely utilized in 2012 and 2013. The program
was chosen because at present,there are no projects proposed for 2014. If other projects are
requested such as a business development project, staff will work with the CDA to redistribute
funds to that category or others.
In 2012,the Commercial Rehab funds expended were $7,320 for Triton Properties and the
Business Development Grant funds expended were$15,000 for Baldy's BBQ. In 2013,the
Commercial Rehab funds expended included$3,200 for K&K Auto Ranch, $14,720 for Long
30
Branch, and$19,000 for Dakota County Lumber totaling$44,240 in Commercial Rehab monies
in both years and$15,000 in Business Development monies in 2012.
The CDA has stated that the City is required to spend $12,634.34 by May 1, 2014,to meet the
timeliness requirements. This requirement will be met after the completion of the Long Branch
and Dakota County Lumber projects.
ACTION REQUESTED
Review the attached application and resolution.
Respectfully submitted,
Lee Smick, AICP CNU-A
City Planner/Economic Development
•
31
The$3,200 for K&K Auto has not yet
FARMINGTON CDBG STATUS REPORT---FUND BALANCES been deducted. It will be reflected in
30-Nov-13 Quarter 1 FFY2013 December budget status report.
Activity 2010 2011 2012 2013 Total Percent
Residential Rehabilitation C) 0 0 0 0.00 0.0%
Commercial Rehabilitation a 0• 0 0 $36,920.64 $36,920.64 47.7%
Business Development Grant 0 0 $0.00 0.0%
Public Service-Senior Center it $11,993.00 $11,993.00 15.5%
Marketing Study(approved by County Board 9/10) a $13,434.64 0 $8,800.00 0 $6,265.36 $28,500.00 36.8%
TOTAL (by year) $13,434.64 $20,793.00 $0.00 $43,186.00 $77,413.64 100.0%
TOTAL BUDGET 47,700.00 39,800.00 39,800.00 43,186.00
PERCENT EXPENDED BY YEAR 71.8% 47.8% 100.0%I 0.0%
*Green dots indicate activities funded in that program year.
FY2013 Spenddown Ratio 1.79
Timeliness Ratio of 1.5 is no more than $64,779.00 $12,634.64 (Amount that needs to be spent) by May 1, 2014
Rehab Numbers: (as of 12/03/13)
Active CDBG Files Committed Funding I #people on waiting list
5 $ 101,925.00 0
CO
N
APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
Application must be received by the Dakota County Community Development Agency
NO LATER THAN JANUARY 15,2013(for Program Year 2014,7/01/14-6/30/15) •
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Applicant Name: City of Farmington DUNS#: 10-850-9795
Contact Name: Lee Smick
Applicant Address: 430 Third Street
City, State, Zip: Farmington, MN 55024
Phone: 651-280-6820 Fax: 651-280-6899 Email: Ismick @cLfarmington.mn.us
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#1 Title: Commercial Rehabilitation Grant CDBG Request: $38,867
#2 Title: CDBG Request:
#3 Title: CDBG Request:
#4 Title: • . CDBG Request:
#5•Title: • :. CDBG Request:
Total Request: $38,867
PLEASE NOTE: AT LEAST 50% of the proposed funding must qualify as a LOW/MOD benefit and
NO MORE THAN 40% of the proposed funding can be for PUBLIC SERVICES. As public services
may not account for more than 15% of the County's total funding, public service requests may need
to be decreased once all applications are submitted and reviewed by CDA staff.
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_. 3+ns'.bS - .YB.. Nil. `.:�.: •a.: .!. .:r.:#t�i'i�4' ;;t`a-.,{•: 4'�v,v,•,..a .In
I certify that the information contained,in this application is true and correct and that it contains no •
misrepresentations,falsifications, intentional omissions, or concealment of material facts. I further-
certify that no contracts have been awarded, funds committed, or construction begun on the proposed
project(s), and that none will - ; •e prior to notification from the Dakota County CDA based on
HUD's e of a-jitelea-e of Fu ds Notice.
dig
Signa ure of Authorized Official „ Da
jryP W/r/ '..
Title of Authorized Official
PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL
OF THE REQUEST FOR CDBG FUNDS
33
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Please complete•the following Sections I-VI for EACH proposed project/activity.
(For example, if 3 projects/activities are being proposed,there will be 3 sets of the following pages.)
Project/Activity# 1
Project/Activity Title: Commercial Rehabilitation
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Activities for Commercial Rehabilitation. •
•
Has this Project/Activity received CDBG funding before? X Yes ❑ No
Check the eligible activity category of the proposed project/activity: (See attached definitions)
❑ Acquisition/Disposition: ❑ Public Facilities/Improvements:
Vacant or undeveloped property Buildings :
Commercial property Infrastructure' -
Residential property Assessment abatement
❑ Demolition/Clearance ❑ Public Services (Le:child care, recreation programs)
❑ Economic Development ❑ Planning
►/ Rehabilitation. ❑ Homeownership Assistance:
Owner occupied housing Support services (i,e, counseling)
Rental housing Downpayment assistance
X Commercial Other types of purchase financing
❑ General Administration ❑ Other (please describe):Commercial rehabilitation
• proiects •
❑ Relocation
•
Describe the project/activity schedule:
•
•
Proposed Project/Activity Start Date: 7/1/2014
Proposed Project/Activity Completion Date: Until funds are depleted.
•
1
34
•
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CDBG funded projects/activities must meet one of the program objectives. Check the
objective for which the CDBG funds will be used.
D Low/Mod Area Benefit ❑ Low/Mod Limited Clientele Benefit
❑ Low/Mod Housing Benefit ❑ Low/Mod Jobs Benefit
❑ Slum/Blight Area Benefit ❑ Slum/Blight Spot Benefit
❑ Urgent Need(extremely rare; used only for emergencies):
If you checked the Low/Mod Area Benefit box, please answer the following:
In what Census Tract/Block Group(s) do beneficiaries of your Project/Activity live? (Please Include map)
How many residents live in this area? •
What is the percentage of low and moderate-income beneficiaries?
How was this documented? 0 HUD Data ❑ Survey •
(See enclosed map) (Please include a copy of survey)
•
If you checked the Low/Mod Housing Benefit box, please answer the following:
How many Low/Mod Households will benefit? Households
(Income eligibility must be verified by written documentation)
Where will this project/activity be available? (Address of property,neighborhood,city-wide)
If you checked the Low/Mod Limited Clientele Benefit box, please answer the following:
How many Low/Mod People or Households will benefit? People/Households
(Please choose either people or households for each project.)
•
How will income be verified?
❑ Income Verification Request Forms •
❑ Eligibility Status for other Governmental Assistance program
❑ Self Certification (Must request source documentation,of 20%of certifications and must inform beneficiary that all
sources of income and assets must be included when calculating annual income)
❑ Presumed benefit (HUD presumes the following to be low and moderate-income: abused children, battered
spouses, elderly persons, severely disabled persons, homeless persons,persons living with AIDS, migrant farm workers)
• 2
•
35
•
If you checked the Low/Mod.Jobs Benefit box, please answer the following:
To meet the requirements of the'Vohs'National Objective, the business being assisted must enter into an agreement
showing commitment that at lease 51%of jobs created or retained will be available to low/mod income persons. The
business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or retained, •
the selection and hiring process, and demographic information about the employees.
Will this project/activity create or retain full time equivalencies (FTEs)? ❑ Create ❑ Retain
For job(s)that are being retained,please provide evidence that the assisted business has issued a notice to affected
employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial
records that shows the business is likely to cut back on employment in the near future without planned intervention.
Will the job(s) created or retained require a special skill? ❑ Yes ❑ No
What percent of permanent FTEs will be held by or available to low/mod income persons? % •
•
If you checked the SlumBlight Area or Slum/Blight Spot Benefit box, please answer the
•
following:
What are the boundaries of the slum/blight area or the address of the slum/blight spot? •
(Please provide letter from building inspector or other documentation noting deficiencies and include photos)
If Slum/Blight Area,what percent of buildings are deteriorated?
•
What deficiency will be corrected or the public improvement.be?
•
•
•
•
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•
. Indicate the proposed objective and outcome of the activity/project.
Outcome#1 Outcome#2 Outcome#3
Availability/Accessibility Affordability Sustainability
Objective#1 ❑ Accessibility for the ❑ Affordability for the ❑ Sustainability for the
Suitable Living purpose of creating a purpose of creating a purpose of creating a
Environment suitable living suitable living suitable living
environment environment environment
Objective#2 ❑ Accessibility for the ❑ Affordability for the ❑ Sustainability for the
Decent Housing purpose of•providing purpose of providing purpose of providing
decent housing decent housing decent housing
Objective#3 . ❑ Accessibility for the • ❑ Affordability for the ❑ Sustainability for the
Economic purpose of creating purpose of creating purpose of creating
Opportunity economic opportunities economic economic
opportunities opportunities
•
Indicate how the project/activity outcome will be measured and projected number of
beneficiaries.
❑ People ❑ Public Facilities ❑ Businesses
❑ Households ❑ Jobs ❑ Organizations .
❑ Housing Units
3
36
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•
•
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4:3f� Yeo.lA�u � gii. "1? tv9 ;:: ;-.1ma5. w sr u :bf .(� l t Via
� o6 �p641!1Y011�SRsOYF �01a resl#Qhe � Qr � :�_ a. f p na �e . AeLO
Check the priority need from the Consolidated Plan for which the CDBG funds will be used:
High Priority Needs—Housing Medium Priority Needs—Housing
❑ Renter, elderly, 0-50%of median income ❑ Renter, elderly, 51-80%of median income
❑ Renter, small related, 0-80%of median income ❑ Renter, large related, 0-80% of median income
❑ Renter, all other, 0-50%of median income
❑ Owner, 0-80%of median income
•
High Priority Needs—Community Development Medium Priority Needs—Community Development
❑ Acquisition of Real Property ❑ Senior Centers
❑ Disposition of Real Property ❑ Homeless Facilities
❑ Parks, Recreational Facilities ❑ Youth Centers
❑ Water/Sewer Improvements ❑ Solid Waste Disposal Improvements
❑ Street Improvements • ❑ Flood Plain Improvements •
❑ Sidewalks ❑ Handicapped Services
❑ Clearance and Demolition ❑ Transportation Services •
❑ Clean-up of Contaminated Site ❑ Battered and Abused Spouses Services
❑ Senior Services ❑ Crime Awareness
❑ Youth Services ❑ Fair Housing Activities
[] Rental Housing Subsidies ❑ Public Housing Modernization
❑ Relocation • ❑ Rehabilitation of Other Publicly Owned Residential
❑ Construction of Housing ❑ Residential Historic Preservation
❑ Direct Homeownership Assistance ❑ Non-Residential Historic Preservation
❑ Rehabilitation of Single Unit Residential ❑ Other Commercial/Industrial Improvements
❑ Rehabilitation of Multi-Unit Residential ❑ Economic Development Non-Profit Assistance
1,1 Rehabilitation of CommerciaVIndustrial ❑ Economic Development Technical Assistance
/ZI Code Enforcement ❑ Micro-Enterprise Assistance
❑ Commercial/Industrial Land Acq./Disposition
❑ Commercial/Industrial Infrastructure Development
❑ Commercial/Industrial Building Acq., Rehab
❑ Planning
Low Priority Needs—Community Development
•
These activities should be funded with sources other than CDBG.
Privately Owned Utilities
Handicapped Centers
Neighborhood Facilities
Child Care Centers
Substance Abuse Services
Employment Training
Child Care Services .
Abused and Neglected Child Services
Tenant/Landlord Counseling
• 4
37
•
,y.•. •sa.:, ru\�...:.. n�'.. :d;..a;; .r.'r:!•,,t >P.P,,.,2.,,.r.^}di S"•^',.' a'r: 'FH:v i ',r•r;.4(3t °MSdzi:. 'r•1t;ryapar;;iaA
ik6,�w4%w'rt;irrS.,,• •,.y esh,,,,t.":u'•Ft... �:�tl .1.1 r�t`✓i'r�0::' �f:.�z�ftr•^r�:A: ^wi'. ,>,r r.r.-`iL. ..S.et. .�`n,�. },�.r, t. ))�`J ;�, •`-I'�5 `v, �'.� ,�i r: t ,.Sf.
> _t5;`:r,S'#, ,{.,l.•7 t.,U 4 lf�I:.?'.,,1�, 4 is{'�, 'iy.:�F n ,1 r. .).t.�y4, y�yy�ki'J., ,7 1f1;, ��.i [''�t, 7.�5.•. !!:
t ..d ,•,� ,.,,w '�ut ..�f a\:•S`::�: •,y11 .b�f'e',E� ,!+-o"4r•,+ ,+f: ,�'• ,,5.. t.' •'rp t✓rl �{, .r 5'w.,>.a.$.n:1{,f..,A•,.+J�l.�.d'•.;t,,,.j5):,;.,;�.,,;ty..,;f'+,:;:;
.,j' .a.si" �:.•:'� �.• •,!r' dt�y,. �,:I,•h •};, °rtR 1.• s\. !i:' .]r P'. :j ,.1 t;; .� t.�, .6 e..r!"T,•,,}•sy f`: ti',... ,h ,{,.<>.+
:! 1'i :.S .k••.+ ,C• .l'ik „c 1 .••i: ``;S' M"di=n 't dV �:1'an• f< 4u,1's,t..r ,.,;z:.,F•, �k o7
.�, .�:r• :•U'r.:. u;^ ,.,t.. .'\,•f jf \..l: •t i,.,1''�;" lir .1 r'�' ,;\..ri°io;,.,,�ha;.*!.?.3`..n,�Jj•�h?y{:,.15.r �..5,1?,�'t 16.f.v n � ,a'L .le' n @�
Ld-+1lF.��/MM } �i }'%i r5` t+.0�t� ,(i3rn• ::'?,; �s.::t�+,l�.l��;t..,• •,<,7,• �i� �FV•f.r � �+:S''i .�:;�:edti'�'b�l .a{t.
b q �'I!;� 'f �*,A�Mk� }pa`F. t?v..;n H(paF.;lk U..tan y°;�.u•.,3.Ht:, �••ai'. •;6.t—�dh�y' ::•�..0 �\.\•}.i...•P•�?s .�{ T1ry ( �?
�� 1 t��{,��. ry%7? C�A. ..T, r\1�. .n,.7h7 r .`w�tllf'•3�:"C. °1:::'1: •i q;V Li:I`h.I l.a u FP.i�nt��'S'Fdi�i2t4���f���r7+t�•{•3ap6't><t�fA..fmtF.
�.,,>.wt7,�. , l...f ;?,'u �Pa....1.�v(......war^,:t.Z,.U,r.:ttrt,.�i.,.%t..?,'r,..�i.j..:.,, .•:i:..... ....... ..,. .�..f..a.>t _ .fu-4•.dl. ,h.L,r 1�.. ,
Provide the total project cost and CDBG request.
Total Project Cost: $38,867 •
Total CDBG Request: $38,867 CDBG Percent of Total Cost: 100%
Describe all other funding sources.
Source of Funds Amount Committed Pending
CDBG $38,867 ❑
•
❑ ❑
• . ❑ ❑
Total: $38,867
•
4.
Please itemize project expenses, using the following guidance as applicable: •
• Acquisition & Improvement Costs- Include purchase price, closing costs, site improvements,
clearance of toxic contaminants, and other acquisition and improvement costs
• Construction/Rehabilitation Costs- Include site improvements, construction (labor, materials,
supplies), installation, permits and other construction/rehabilitation costs
• Professional Fees and Personnel Costh - Include architectural, engineering and code inspection
fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and
other professional/personnel fees
• Other Development Costs - Include relocation;financing costs, environmental reviews,
environmental studies, and other development costs •
• Eligible Costs for Planning Projects- Include professional services, project management costs,
and other planning costs
CDBG
Itemized Use of Funds/Expenses Costs Requested
Total:
•
* * * * *
Please review each section'for completeness.
Each project/activity should have separate Sections I through VI.
5
38
CDBG ELIGIBLE ACTIVITIES DEFINITIONS
The following are summary definitions of Community Development Block Grant Eligible Activities:
Please Note:Although an activity may be deemed eligible for CDBG funding,it does not guarantee funding. The Community
Development Needs for the CDBG Program in the Comprehensive Plan sets forth the priority of needs and as such, dictates which
types of eligible activities may be funded in a given year.
CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government or used for political
activities.
AcquisitionlDisposition:The use of CDBG funds to acquire real property,in whole or in part,by purchase,long-term lease,donation,
or otherwise,for any public purpose. Real property to be acquired may include;land,air rights,easements,water rights,right-of-ways,
buildings and other property improvements,or other interests in real property.
Demolition/Clearance:Clearance,demolition,and removal of buildings and improvements including movement of structures to other
sites.
Economic Development Activities:Economic development activities may Include,but are not limited to:(1)Construction by the
grantee or sub-recipient of a business incubator designed to provide inexpensive space and assistance to new firms to help them
become viable businesses,(2)Loans to pay for the expansion of a factory or commercial business,and(3)Providing training needed
by persons on welfare to enable them to qualify for jobs created by CDBG-assisted special economic development activities. The level
of public benefit to be derived from the economic development activity must be appropriate given the amount of CDBG assistance.
Rehabilitation:Rehabilitation related activities may include single-family rehabilitation,multi-family rehabilitation,energy efficiency
improvements,public housing modernization,and rehabilitation of commercial properties.
General Administration: CDBG funds may be used for the general administration costs incurred by a Subrecipient to administer their
.CDBG program. Administration costs directly associated-with a CDBG activity should be part of the activity as project administration.
Relocation:CDBG funds may be used for relocation payments and assistance to displaced persons,including individuals,families,
businesses,non-profits,and farms,where required under section 570.606 of the regulations(pursuant to the Uniform Relocation Act).
Public.Facliltiesllmprovements:CDBG funds may be used by the grantee or other public or private nonprofit entities for the
acquisition(including long term leases for periods of 15 years or more),construction,reconstruction,rehabilitation(including removal of
architectural barriers to accessibility),or installation,of public improvements or facilities. Buildings for the general conduct of
government cannot be acquired or improved with CDBG funds.This includes neighborhood facilities,firehouses,public schools,and
libraries,as well as water and/or sewer treatment plants.The regulations further specify that facilities that are designed for use in
providing shelter for persons having special needs are considered to be public facilities.
Public Services:CDBG funds may be used to provide public services(including labor,supplies,and materials),provided that each of
the following criteria is met 1)The public service must be either a new service or a quantifiable increase in the level of service;and 2)
The amount of CDBG funds obligated within a program year to support public service activities under this category may not exceed
40%of the City's allocation and the total public services of all Sub-recipients may not exceed 15%of the total grant awarded to Dakota
County for that year.
Planning: Includes studies,analysis,data gathering,preparation of plans,and identification of actions that will implement plans.The
types of plans which may be paid for with CDBG funds include, but are not limited to;Comprehensive plans;Individual project plans;
Community development plans,Capital improvement programs;Small area and neighborhood plans;Environmental and historic
preservation studies;and Functional plans(such as plans for housing,land use,energy conservation,or economic development).
Homeownership Assistance: Homeownership assistance activities may include financial assistance for downpayments,closing costs
or other part of the purchase process and counseling for pre-purchase,post-purchase or foreclosure prevention.
6
39
•
RESOLUTION NO. R3-14
A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF
FARMINGTON FOR FISCAL YEAR 2014 DAKOTA COUNTY COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG)FUNDING
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Farmington, Minnesota,was held in the Council Chambers of said City on the 6th day of January,
2014 at 7:00 p.m.
Members Present: Larson,Bartholomay, Bonar
Members Absent: Donnelly,Fogarty
WHEREAS, the City of Farmington is a participating jurisdiction with the Dakota County
CDBG Entitlement Program for Program Year 2014 (July 1, 2014,through June 30,2015); and
WHEREAS, the Dakota County Community Development Agency (CDA) is a Sub-grantee of
Dakota County for the administration of the CDBG Program; and
WHEREAS, the Dakota County CDA has requested PY2014 CDBG applications be submitted
by January 15, 2014, based on a district formula allocation of funds approved in the Community
Development Implementation Plan.
NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby approves the
following:
1. The Program Year 2014 CDBG application is approved for submission to the Dakota
County CDA.
2. The City Administrator for the City is authorized to execute the application and all
agreements and documents related to receiving and using the awarded CDBG funds.
3. The Dakota County CDA is designated as the administrative entity to carry out the
CDBG program on behalf of the City, subject to future Subrecipient Agreements that
may be required for specific CDBG-funded activities.
This resolution adopted by recorded vote of the Farmington City Council in open session this 6th
•
day of January,2014.
CITY OF FARMING N
•
• ayor
Attested to the 7'44 day of January 2014.'
•
City y Administrator
SEAL
40
iy
City of Farmington
iMa 430 Third Street
Farmington,Minnesota
1, 651.280.6800•Fax 651.280.6899
'' raoso www.ci.farmington.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 27, 2014
INTRODUCTION
The"Open to Business" (OTB)program with the Metropolitan Consortium of Community
Developers (MCCD) in conjunction with the CDA has completed one full year of assistance to
business owners in Farmington. As reported at the EDA meeting,on October 28,2013, in 2013
Laurie Crow has worked with 8 business clients (See Ex. 1) in Farmington in the sectors of
children's fitness, service/team building,real estate,retail stationary,HVAC, and a Christian
website. She is assisting the clients with initial consultations, loan packaging, loan facilitation,
and business plan writing. She has also directed some clients to CPA, legal, and web design
professionals. Additional businesses receiving assistance in 2013 will be reported on January 31,
2014.
The OTB program was approved by the EDA on September 24, 2012,to be a pilot project in
Farmington for the next two to three years. Funding will once again provide MCCD services
under the"Open to Business"program to continue to provide small business technical
assistance services to existing businesses, residents, and other parties interested in opening or
retaining a business in our City and within communities in Dakota County. Attached is the Joint
Powers Agreement(JPA) (See Ex. 2) between the CDA and Farmington to approve the City's
participation in the"Open to Business"program. Additionally,Exhibit A shows the participation
fee schedule for the Cities in the county. Exhibit B describes the OTB scope of services.
DISCUSSION
On October 17, 2013,the Dakota County Board of Commissioners approved the OTB program
for 2014. The Joint Powers Agreement proposes that the CDA and the local governments 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 2014 program fee total remains relatively the same at$135,000 on an annual basis for
communities in Dakota County. The City of Mendota Heights has recently joined the program
41
this year making a total of 11 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. As mentioned above, Mendota Heights is paying$2,500 with
a total contract fee of$5,000. The CDA will pay$7,500 for small cities and townships to
participate in the program. •
Program Information
Open to Business Program
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
Access to capital will be provided to qualifying businesses through MCCD's Emerging Small
Business Loan Program. MCCD also provides it's financing in partnership with other
community leaders, banks, or local governments interested in making capital available to
residents and/or businesses in their community.
MCCD"Open to Business" Staff
Laurie Crow will continue as the Business Advisor to work with the 11 communities and
townships in Dakota County. She will, once again, be located in an office off of the atrium in
City Hall or available by phone. She will be in City Hall the 4th Tuesday of each month between
9:00 a.m.— 11:00 a.m. Her start date is February 25, 2014. As prepared by Ms. Crow
throughout the 2013 program, she will submit specific reports to the Farmington EDA that will
include the following information:
> Number of inquiries
➢ Hours of technical assistance provided
> Type of assistance provided
> Type of business
42
> 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 30,2014
2nd quarter April—June,report due July 31,2014
3rd quarter July—September,report due October 31,2014
4th quarter October—December, report due January 31, 2015
BUDGET IMPACT
$5,000 was included in the 2014 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.
Respectfully submitted,
Lee Smick, AICP CNU-A
City Planner/Economic Development
43
ric
OPEN
TO BUSINESS
Dakota County
Program Report- 1.1.13 to 9.30.13
Clients Served: Industry Segment:
New/Existing Entrepreneurs 124 Retail 33
Existing Business 30 Service 86
(Of those clients served) Food 35
Manufacturing 1
Inquiries: 232 Technology 1
(Inquiries are contacts by entrepreneurs requesting information
who have not yet scheduled an appointment) Real Estate/Related Trades 3
Financing:
Provided: Requests/In Process:
Number 3 Number 1
Amount $165,000 Total Request $553,800
Microgrants: MCCD Portion $30,000
Number 2 Facilitated Loans:
Amount $2,000 Number 2
Amount $50,000-100,000
Hours of Direct Service: Office Hours/Events/Marketing:
1st Quarter- 790.25 1st Quarter- 567
2nd Quarter- 587 2nd Quarter- 219
3rd Quarter-• 384.25 3rd Quarter- 258
Total Contract- 1761.50 Total Contract- 1044.00
Client City: Referral Source:
Apple Valley 6 CDA Staff 9
Burnsville 14 City Staff 101
Eagan 15 Internet 3
•
Farmington 8 Chamber 5
Hastings 9 Other(Banks,Schools, Etc.) 62
Inver Grove Hts 3
Lakeville 10
Rosemount 8
S.St. Paul 5
W.St. Paul 2
Other Municipalities 2
Other Dakota County 42
(Residents from other Counties who want to open a business in Dakota County)
44
JOINT POWERS AGREEMENT
Open to Business Program
THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of January 1,
2014,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,CITY
OF MENDOTA HEIGHTS, 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
45
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
929&589v1
46
•
FARMINGTON ECONOMIC DEVELOPMENT
AUTHORITY
Dated: dzemft, a sZG/ By
Its /`iaycr
By •L /C /
Its C; . J- }, .516,17-7/0
Notice Address:
430 Third Street
Farmington,MN 55024
Attn: v,J ,./%/K/.;,74f
•
•
•
•
•
•
S - 10 Joint Powers Agreement
, t.
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 $15,004 $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
Mendota City of Mendota Heights $5,000 $2500 $2,500
Heights
Small Cities ' ' . n/a
and $7,500 $7,500 $0
Townships -
Total $135,000 $71,250 $63,750
9293870v3 • 48
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:
> 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 it's 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 4 9