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HomeMy WebLinkAbout02.24.14 EDA Packet o 1, Og, 4 AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING FEBRUARY 24, 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 a) Organizational Matters i. Election of Officers ii. Meeting Schedule iii. Adoption of By-laws 5. Citizen Comments/Presentations a) Open To Business Fourth Quarter Report—Laurie Crow Information Received 6. Consent Agenda a) Meeting Minutes (1/27/14 Regular) Approved b) Bills: 1/27/14—2/23/14 Approved 7. Public Hearings 8. Continued Business a) Review of Marketing Plan Discussion Items Reviewed 9. New Business 10. City Staff Reports/Open Forum/Discussion 11. Adjourn /-011 M, City of Farmington t1� 430 Third Street " �;,s, Farmington, Minnesota ‘A�1 651.280.6800•Fax 651.280.6899 www.cifarmington.mn.us TO: EDA Members FROM: Cynthia Muller, Executive Assistant SUBJECT: Annual Organizational Matters DATE: February 24, 2014 INTRODUCTION/DISCUSSION Attached are the proposed 2014 Economic Development Authority (EDA) By-Laws. Section 1, subdivision 3 of the by-laws requires direction from the EDA regarding the following: a. Election of Officers The EDA By-Laws provides that each year, the EDA shall choose a Chairperson and Vice-Chairperson. A Secretary and Treasurer must also be appointed which typically is assigned to the Executive Director, as neither needs to be a commissioner. b. Meeting Schedule The EDA shall establish a meeting schedule for the year. Attached is the City's Board and Commission meeting calendar which identifies the date of each EDA meeting. EDA meetings are held the fourth Monday of each month at 6:30 p.m. If that Monday is a holiday,the EDA meeting would be held the next day. EDA members should confirm that this meeting schedule works for all members. Please provide action for the above listed items. A copy of the revised by-laws is enclosed. ACTION REQUESTED Approve the 2014 Economic Development Authority By-laws. Respectfully submitted, Cynthia Muller Executive Assistant 20132014 ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS These By-Laws, when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I—Meetings SUBD. 1 —Regular meetings of the Economic Development Authority shall be held on the fourth(4th) Monday of each month at 6:30 p.m. Any regular meeting falling upon a holiday shall be held on the next following business day at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2—Special meetings of the Authority may be called by the Chairperson or in written form by any other two (2)members of the Authority, filed with the Executive Director. The Executive Director may also call a special meeting. At least three (3) days before the meeting, the Executive Director shall notify each member of the time,place and purpose of the meeting by causing written notice thereof to be delivered to him/her personally if he/she can be found, or, if he/she cannot be found, by leaving a copy at the home of the member with some person of st i4able age and discretion residing thereinby e- mail. At least three (3)days prior to the meeting, the Executive Director shall also post notice of the meeting and if applicable,notify each person who has filed an applicable written request for notice, or may, if necessary,provide such other more restricted notice, including but not limited to (as allowed by Statute, such as)M.S. 471.705, subd. 1C,paragraph g, " if a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are satisfied with respect to that person,regardless of the method of receipt of notice." Emergency meetings may be held because of circumstances that, in the judgement of the Authority require immediate attention. The notice of special meeting shall state the item(s)to be discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken if any member objects. Any special meeting attended by a majority of the Authority members shall be a valid meeting for the transaction of business that may come before the meeting. SUBD. 3 —At the regular Authority meeting in February of each year,the Authority shall (1) Iacknowledge City Council's designateion of the official newspaper; (2) establish meeting schedule for the year; (3) choose a Chairperson and a Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability or absence and in case of a vacancy in the office of Chairperson and until a successor has been appointed and qualifies to fulfill the duties of Chairperson, and; (4) appoint a Secretary and Treasurer, which need not be a commissioner. SUBD. 4—All Authority meetings, as defined by State Law, including special and adjourned meetings shall be open to the public. The Authority Attorney shall advise the Authority in writing as to his interpretation of the state"Open Meeting Law" and all new members shall be provided such written interpretation. 1 Section II Presiding Officer; Rules of Order SUBD. 1 —The Chairperson shall preside at all meetings of the Authority. In the absence of the Chairperson,the Vice-Chairperson shall preside. In the absence of both,the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one of their members to act temporarily as presiding officer. SUBD. 2—The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules,the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A motion must be seconded before being considered by the Authority and the presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent of his/her second. But a motion, once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member,while speaking, shall confine himself/herself to the question at hand and avoid all personal, indecorous or sarcastic language. E. Whenever any member of the Authority desires to speak on any question,which affects him/her personally,he/she shall first vacate his/her chair and shall not resume his/her seat until the matter under consideration has been acted upon. He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held,the presiding officer shall allow any member of the public,the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting,the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SUBD. 3 —Any member may appeal to the Authority from a ruling of the presiding officer. If the appeal is seconded,the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority of the members present. 2 Section III—Agendas SUBD. 1 —The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Wednesday preceding the meeting for publication purposes. SUBD. 2—Any member may place an item on the agenda by so instructing the Executive Director. SUBD. 3 — No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved. SUBD. 4—The agenda add-ons are subject to approval by a majority vote of the members present and further such add-on items may be discussed,but no action may be taken if any member objects. Section IV—Order of Business SUBD. 1 —Each meeting of the Authority shall convene at the time and place appointed therefore. Authority business shall be conducted in the following order: 1) Call to Order 2) Pledge of Allegiance 3) Roll Call 4) Approve Agenda 5) Citizen Comments/Presentations 6) Approve Consent Agenda a. Minutes b. Bills c. Additional Consent Agenda items 7) Public Hearings 8) Continued Business 9) New Business 10)City Staff Reports/Open Forum/Discussion 11)Adjourn SUBD. 2—The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V—Minutes SUBD. 1 —Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence,his/her designee. In the absence of both,the presiding officer shall appoint a secretary pro tern. Resolutions need not be recorded in full in the minutes if they appear in other permanent records of the Executive Director and can be accurately identified from the description given in the minutes. SUBD. 2—Minutes of each meeting shall be reduced to typewritten form and shall be signed by the taker. At the next regular Authority meeting, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud, but the presiding officer shall call for any additions or corrections. If there is an objection,the Authority shall vote upon the addition or correction. If there 3 are no additions or corrections,the minutes shall stand approved by motion. If there is an objection, the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. Section VI—Quorum and Voting SUBD. 1 —At all meetings a majority of all members shall constitute a quorum for the transaction of business. SUBD. 2—The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote,the minutes shall state: "Abstain:Name". SUBD. 3 —Except as otherwise provided by statute, a majority vote of the quorum shall prevail. Section VII—Executive Director The Authority may appoint and provide for annual performance reviews of an Executive Director. Section VIII—Suspension or Amendment of the By-Laws SUBD. 1 —These by-laws may be temporarily suspended by a unanimous vote of the members present. SUBD. 2—These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX—Effective Date SUBD. 1 —These by-laws have been adopted by the Economic Development Authority on the day of , 20 and become effective immediately. Attest: EDA Executive Director EDA Chairperson Date: Date: 4 JANUARY 2014 JULY 2014 S M T W T F S S M T W T F S 1 2 3 4 1 2 3 4 5 ■%4i ARM/y��5 ® 7 ® 91011 6 ®® 90101112 O 12 13 15 16 17 18 13 g 15 16 17 18 19 v Z 19 20 22 23 24 25 20®22 23 24 25 26 p ` h; 26(2a7 28 29 30 31 27 29 30 31 (4%* =.4::' �`� 4sT.q PRfl..0 FEBRUARY 2014 AUGUST 2014 S M T W T F S S M T W T F S 1 1 2 www.ci.farmington.mn.us 2 . 4 5 6 7 8 3 5 6 7 8 9 10 9 ® 13 14 15 10 11 12 e 14 15 16 2014 16 17 Z 19 20 21 22 17 • 19 20 21 22 23 23 ® 25 26 27 28 24®26 27 28 29 30 PHONE NUMBERS 31 MARCH 2014 SEPTEMBER 2014 S M T W T F S S M W T F S 1 1 3 4 5 6 2 it 4 5 6 7 8 7 8J • 11 12 13 90 40/4,13 14 15 14 ® 16 17 18 19 20 16 18 19 20 21 22 21 122123 24 25 26 27 23 1241 25 26 27 28 29 28 29 30 30 31 APRIL 2014 OCTOBER 2014 S M T W T F S S M T W T F S 1 2 3 4 5 1 2 3 4 6t♦09 10 11 12 5 � 7 ® 9 10 11 13 1 15 16 17 18 19 12 13 ♦ 15 16 17 18 20®22 23 24 25 26 19 • 21 22 23 24 25 CITY HOLIDAYS 27 iM 29 30 26 1271 28 29 30 31 ® PLANNING COMMISSION • COUNCIL MEETINGS MAY 2014 NOVEMBER 2014 S M T W T F S S M T W T F S PAYDAYS 1 2 3 1 4 ® 6 7 8 9 10 2 * 4 5 6 7 8 1 1 WATER BOARD A5 EDA 11 4.4 15 16 17 9 11 ® 13 14 15 O PARK & REC. COMMISSION 18 20 21 22 23 24 16 18 19 20 21 22 RRC ADVISORY BOARD 25 26127128 29 30 31 23 124 25 26 27 28 29 30 HPC MEETINGS JUNE 2014 DECEMBER 2014 T W T F S S T W T F S S 1 4 3 4 5 6 7 * 2 3 4 5 6 8 *I 1012 13 14 7 ®.® 11 12 13 15 ® 17 18 19 20 21 14 . 16 17 18 19 20 22 1231 24 25 26 27 28 21 1221 23 24'25 26 27 651-636-4600 29 30 28 29 30 31 FAX 651-636-1311 www.stantec.com Fl\cIlent\municipal\tarmInpton_cllnn\1410EN\Cad\141ca12013 �FiA /yc� City of Farmington 'z 430 Third Street Farmington, Minnesota �1�4 651.280.6800•Fax 651.280.6899 q8)•A PIMo`t www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller, Executive Assistant SUBJECT: Open To Business Fourth Quarter Report DATE: February 24, 2014 INTRODUCTION/DISCUSSION Ms. Laurie Crow will be attending the February 24, 2014, EDA meeting to present the Open To Business Fourth Quarter Report. At the January 27, 2014, EDA meeting, members had questions as to what her contacts have consisted of and what information can be used to promote this program in Farmington. ACTION REQUESTED EDA members should receive the Open To Business Fourth Quarter Report and ask any questions they may have regarding this program. Respectfully submitted, Cynthia Muller Executive Assistant DI OPEN TO BUSINESS Dakota County 2013 Final Report Clients Served: Hours of Direct Service: New/Existing Entrepreneurs 136 1st Quarter- 263 Existing Business 36 2nd Quarter- 426 (Of those clients served) 3rd Quarter- 384 4th Quarter- 251 Inquiries: 322 Total Direct Service: 1,324 (*Requests for information/referral,not a formal client) Office Hours/Events/Marketing: 1�t Quarter- 567 Financing: 2nd Quarter- 219 Provided: (Dakota County Businesses) 3rd Quarter- 258 Number 4 4th Quarter- 236 Amount $195,000 Total Office/Marketing: 1,280 . Provided: (Dakota County Residents) Number 8 Total Hours: 2,604 Amount $79,374 Microgrants: Industry Segment: Number 3 Retail 28 Amount $3,000 Service 83 Credit Builder Loans Food 33 Number 4 Manufacturing 1 Amount $1,055 Technology 1 Real Estate/Related Trades 3 Total: Number: 19 Amount $278,429 Client City: Apple Valley 8 Requests/In Process: Burnsville 15 Number 1 Eagan 16 Total Request $30,000 Farmington 10 Facilitated Loans: Hastings 10 Number 2 Inver Grove Hts 5 Amount $50,000-100,000 Lakeville 11 Mendota Heights 0 Referral Source: Rosemount 10 CDA 9 S.St. Paul 5 City 107 W.St. Paul 2 Internet 4 Townships 2 Chamber 5 Undecided Location 42 Other(Banks,Schools,etc.) 65 Company: Delectable Designs (Farmington) Achievement: New Start Up Delectable Designs is another proudly started Woman Owned Business! It features beautiful, gourmet greeting cards, giftware, and artwork for Foodies! Feed the senses with a card and gift from Delectable Designs. Perfect for those who love food cooking &dining! Company: Ricky's Gym (Farmington) Achievement: New Start Up - Business Expansion Ricky's Gym is a supplemental Physical Education program that contributes to the total growth and development of all preschool and elementary school children primarily through physical activity and exercise. Children participate in a variety of physical activities in a supportive learning environment. Motor skills, fitness development, fair play, and cooperation will be emphasized. • • • • MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting January 27, 2014 1. CALL TO ORDER The meeting was called to order by Vice-Chair Jolley at 6:30 p.m. Members Present: Jolley, Bonar, Wilson,Zeaman Members Absent: Larson Also Present: David McKnight, City Administrator; Cynthia Muller, Executive Assistant Audience: Clyde Rath, Jerry Henricks 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bonar, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Bonar, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (12/16/13 Regular) b) Approved Bills 12/16/13 — 1/26/14 c) Received November 2013 Budget APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. CONTINUED BUSINESS a) Marketing Plan Discussion The Marketing Plan was presented to the EDA at the December 16, 2013, meeting. The plan set four 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). EDA Minutes(Regular) January 27,2014 • Page 2 Member Wilson felt the plan is a good foundation. The outcome he would like to see is to approve the marketing plan, set up work groups to carry out the action steps, and determine the roles of staff and the EDA and whether there is enough staffing. Member Jolley felt a critical item is having enough staff to approach these goals. Deepening relationships with business owners through business retention and expansion was going well,but lost momentum. You need people to go on visits and talk with business owners to get their input and to learn what we can do for them. The business owners also give things to us that need follow-up and we need people to do that. It needs to be organized by the staff person. City Administrator McKnight stated the summary of the business visits is something he would like the EDA to have, but sent out in a different format. Business owners should not be concerned that what they say will be given to the public. The follow-up can be improved upon with the current staff. Member Zeaman asked how much we can protect the information, because some may paint a rosier picture because they don't want the competition to know their weaknesses. How do we get them to talk to us about ways we can help them without exposing them to their competitors? In private conversations he gets a different picture than in the business visit. City Administrator McKnight felt that comes with time and sending the right people on the visit. Member Wilson asked if the group as a whole is viewed as relationship building or is it more investigating and checking on what the business is up to. Member Jolley stated if the introduction to the business is good, smooth and professional they welcome us. Customers like to have groups come out so they can show what they do. Sometimes the introduction is a little bumpy and she would like to see it smoother. In the phone call, tell them why we are coming and also when we arrive tell them why we are there. The introduction should be professional. Overall, 90% of the businesses welcome us. Some have complaints that they want to have heard and that is okay. Member Bonar agreed businesses have been very accepting and the approach has been low key. He noted the report says to continue the momentum and have two visits per week. Member Jolley would rather have four visits twice a month because of the difficulty getting people together. It would be easier to meet less often and spend a longer amount of time on each visit. Member Bonar would like to see two hours spent on two indepth visits. City Administrator McKnight noted that can be done at a staffing level. However, four visits per month could be too much. Member Jolley stated we don't have to have a scheduled deadline, but we need to keep it going. More important is the follow-up and that needs staff. EDA Minutes(Regular) January 27,2014 Page 3 Member Bonar suggested having staff be the first point of contact during their working hours. The EDA could be the follow-up with a more in-depth approach. The second visit would be dependent on if the staff visit goes well and some citizen representation is needed afterwards. That may keep the continuity of us being amongst businesses and provide some variety. The current model has not worked well for us as a group. Member Wilson stated to effectively manage the visits,there has to be some staff adjustment, enhancement, restructure, something which allows someone to be feet on the ground. The way staff is structured right now, it is very lean and very efficient,but not a lot of room to go out and do a lot of other things. City Administrator McKnight felt staff participation in the visits is vital. He envisioned three person teams, but not the same people each time. It is more who should go to a specific business; who has a relationship with that business. He felt we could spread it around enough with the staff we have now. We need to take advantage of the relationships staff has with various businesses. Member Wilson felt Council and Administration need to take a serious look at this, because it will take the business community,the EDA and more staffing to get it done the right way. City Administrator McKnight did not want to minimize the role of the Council or the EDA in these visits, because their role is very important. Member Bonar noted Member Jolley has been on all the visits. Other EDA members have to strike a balance with other daily activities. This is continuous and is ever evolving and moving. Member Jolley agreed having a staff person on the visit is vital,because there are some questions we are not able to answer. We have to be intelligent and able to react to their questions. Member Zeaman suggested sending out a letter to businesses that attended the Expo and invite them to have a business visit and to respond to a handful of questions. We could determine who we need to see first and who needs to speak with us. Some people don't understand who the EDA is. It might help to let them know there is an organization. He has heard of a couple businesses that are at risk and we should visit them to see if there is something we can do. Member Wilson recalled in the past there was a realtor's forum and a banker's forum. Anytime you can assemble common trade groups and have a focus that is a way to reach out. Member Zeaman stated you could get bankers together and have them create a business plan. SCORE was willing to come to speak to entrepreneurs about forming a business. This would be good for people wanting to start a business and then connect them with bankers who could explain what the owner would need to do to approach a bank about obtaining a loan. Member Bonar suggested at a future Community Expo having a table for Boards and Commissions, or at least the EDA. Member Jolley asked for input about the next goal of approaching land owners or developers to be better prepared for industrial development. She has spoken with EDA Minutes(Regular) January 27,2014 Page 4 people close to the larger land owners. It does not look like anything will happen there for a while. The owners are not interested in selling and it does not have to do with money. It has to do with the vision for their generations coming forward and their roots. If we are going to do anything other than talk about adding to the industrial park, we need to look someplace else. They don't need to sell their land and they have a vision of working their land as long as they are working people. She received an interesting video from the marketing consultant, Tom Whelan, that talks about how to approach people such as land owners, with a plan to develop a portion of their land into something agriculture related. Member Zeaman recalled staff talking about a property that is for sale west of Flagstaff. Member Bonar noted that would be spot zoning. Member Jolley stated if we don't move forward with obtaining land and put in improvements, we are wasting our time trying to market it. She would like Mr. Whelan to share the video with the EDA. Member Wilson stated we do not have a vision of what we want for the City, so we are not prepared to say what type of industrial park we want. We could move this marketing plan into a three or five year strategic plan. He felt the major components of this plan will be in the overall City strategic plan. Member Wilson would like to see the marketing plan framed into a 20-year strategic plan. Member Bonar stated we have the legacy,the individuality of the community,the interest of the citizens, but then an overarching body called MUSA and the 2030 Comprehensive Plan which we need to fit into a regulatory process. It is in our best interest to be flexible when it comes to land uses within those defined boundaries. Member Bonar felt the marketing plan missed our greatest challenge which has to do with corralling the consumer behavior of our own community. Member Zeaman stated we need all the businesses to promote shop in Farmington, stay in Farmington. The community needs to understand that the dollars spent here come back to the community. Member Bonar stated while we can do an excellent job in retaining our businesses and attracting new ones, if we don't corral the consumerism of our own community we will dilute the whole ratio and will not be nearly as effective. That is not addressed in the Marketing Plan. It is based on how do I bring business to the community, not how do I channel consumerism. Member Zeaman noted the Grow Farmington campaign had great momentum and then it slowed down. That needs to be its own marketing initiative and is a staffing requirement for someone to drive that and take ownership. There are volunteers, but too many other things come up in their lives. Member Bonar noted that falls back into the framework of a CIP. Mr. Clyde Rath, Farmington Business Association (FBA) President,had concerns about the Exchange Bank building being empty. If the City is going to hire staff to bring people in to build west of town, we have missed the market completely and that person is set up for failure. We need a shop local campaign. He stated the FBA can use the utility billing mailing to get information to local residents. Mr. Rath would like to also see focus on Vermillion River Crossing (VRC) and the Spruce Street corridor that was discussed several years ago. There are not EDA Minutes(Regular) January 27,2014 Page 5 many empty buildings downtown, so to bring business to Farmington where will you go? Member Zeaman felt there are plenty of places to go,but they do not meet the economic desires of where people want to be as far as rent. The business models do not support the rent models in the properties they are looking for. People are buying properties and collecting rent rather than reinvesting in the property. We also have new property owners in a different business model who are investing in the properties and trying to attract people. The two quadrants are not comparable. The land owners are not motivated to sell. You are looking to change the dynamics of how business works in town. You have to change the economic model for land owners because there is no incentive. If you want to change the environment you have to create some pressure to go down a different path. You have places for people to go, but they don't want to be in downtown because they don't like the look of it, they don't want to be in VRC because it is too expensive. They can't get what they want. Member Jolley asked if we are turning people away because we don't have space. Mr. Rath felt we are because of lack of space and not having adequate space. He felt rent comes into play a little,but that is not the largest issue. There are not a lot of options for space. Member Bonar stated the point is we lack variety in different types of land for businesses to consider. Member Wilson stated if we agree it is reasonable to have a focused dialogue with who we have here and frame questions for business owners to get results, such as what are your limitations to expand, what are your limitations to recommend a business partner to relocate here, what is the biggest need, etc., after six months or a year of good insight from the business owners, you will be able to say we have a certain percentage of the people wanting to recommend downtown, or recommend expanding another area. We should have a lot of good information to go to step two. Maybe another component will come from the business owners. One thing to come out of this Marketing Plan is the great information we can get. Then it is a matter of taking that information and executing a plan. Member Zeaman stated we need to get neighborhood signage directing people to downtown,because no one knows downtown exists. To re-inspire the Grow Farmington would be a good addition to this plan. It had a lot of momentum and people were committed, and then it stopped. Member Jolley noted with the territory we have covered and considering the financial resources we have available to us and the personnel we have,there has to be some focus. There are a number of priorities that have to be addressed, but it is a real challenge for us with funding and the personnel we have. We need an action group to look into a remedy for appropriate space, someone else looking at the west side for industrial, etc. If we take on too much we will accomplish nothing. EDA Minutes(Regular) January 27,2014 Page 6 Mr. Rath stated as far as way finding signage, you have to deal with the state on highway 3 and the county on Pilot Knob Road. At least for the downtown the Heritage Preservation Commission has funding access to way finding signs. We would need to look at other avenues for signage on highway 3 and Pilot Knob Road. You want them to look somewhat similar so people understand they are in Farmington. Member Bonar disagreed. In these days with social media, why be static with putting up signage. Mr. Rath stated it is not just the EDA, or the HPC, or any one group. Everyone has to pull together and have a vision and pots of money. It includes the City, school district, FBA, etc. Member Bonar envisions the EDA's role to be a catalyst; not a crutch. Member Zeaman stated what is the incentive to come here? We don't have any large signage pointing to where things are. Mr. Rath noted there is plenty of art money out there. Why not get art money to fund signage? Member Zeaman noted it would have to stand out from everything around it. Member Zeaman stated this is a mid to long-term plan. We have a short term plan with how to divide the resources for how to move forward. We need to address the immediate issues. Member Bonar stated we have a quarter of a plan here. We have a Marketing Plan that speaks to businesses, we have Grow Farmington that may speak to consumers, but hasn't been coupled with businesses, we are short on the personnel side and we have $118,000. Member Zeaman stated the vision we need to put together and the project plan and the different groups we need to bring together, if we start to lay out a project plan and how they all connect together and the pieces and how they can be part of a larger plan and then with the property to set the vision for the future, maybe it is a couple sessions of the EDA getting together and lay out a high level plan of how organizations can connect to drive this greater goal. Someone has to take ownership for doing the bigger vision and who is that going to be and who will put that together to create some sort of framework for that vision that people can fill in the detail as to how that evolves. Member Wilson suggested looking at the events we have and what can be added to them to bring more people. Member Bonar asked if this CIP should be a 10-year plan. Member Zeaman stated we have to think as a 10-year plan, but five years is all you can realistically envision. Beyond that,too many things can change. Member Bonar stated his tendency is a one, three, and five-year plan with ten being the outer reach. You start with one, work to three and re-evaluate at five. Member Zeaman noted the hotel will be a necessary infrastructure item if we want to start hosting more tournaments or for businesses. EDA Minutes(Regular) January 27,2014 Page 7 City Administrator McKnight agreed with the EDA accepting the Marketing Plan. This discussion has laid out a number of other things to go along with the plan. We have to put them on the table, so the EDA can start to prioritize, realizing there are dollars for spending and human capital that is in a different budget. We have to go backwards and review some things that have not been accomplished and things that came out of Grow Farmington. We have to realize our limitations on what we have to spend whether it is people or money and we have to be realistic as to what our goals are. He suggested continuing this discussion next month and staff will bring this back for the EDA to start to prioritize. As far as business visits, members suggested having questions and sharing them with the business prior to the visit. Explain why we are coming,we want to help you succeed and here are the questions we have. Member Wilson liked the idea of having all staff involved as it will help them understand that their role stretches beyond their own area. Member Jolley felt the proposed questionnaire in the Market Plan is focused towards large industry and would not apply to our businesses. Questions should be broken down by type of business for the visit and have 10— 12 questions. Think about what we don't know about this business. Members requested that the main business owner be present for the visit. Member Bonar encouraged we follow up with a business afterwards other than sending thank you cards. City Administrator McKnight felt we could use the 40 hours of service from Mr. Whelan once we get more focused. MOTION by Wilson, second by Bonar to accept the Marketing Plan and direct staff to customize the report to suit Farmington's ideas taking the ideas discussed and help execute a strategic plan based on that. APIF, MOTION CARRIED. b) Business Visits 2013 Summary and Plan for 2014 Much of this was discussed in the previous item. City Administrator McKnight stated it is good to have a summary list of activities accomplished. As far as the business visits summary, it will be worded to protect specific business issues and a follow-up column will be added so the EDA can see what we need to do and the progress being made. This will be brought back to the next EDA meeting. Member Wilson noted we have discussed the role of the City and the EDA in business visits. He asked if business owners should be part of the visits where there is no conflict of interest. Member Bonar noted that would be the business retention part. Member Zeaman saw that as being a positive and a negative. He suggested asking the business owner if they would like another business owner to come. EDA Minutes(Regular) January 27,2014 Page 8 c) Summary of 2013 Accomplishments and Economic Development Strategic Plan Tracking Sheet The strategic plan was approved in 2012 and had four categories including organizational plan, marketing, business retention and expansion and business recruitment. There were 74 actions steps, 27 of which are completed. City Administrator McKnight gave an update on the status of the hotel. The hotel owner is trying to negotiate with the Vermillion River Crossings land owners. Member Zeaman noted the grants that have been awarded to various businesses. He asked what oversight has been done and where are they with their progress on meeting their commitments to the City. City Administrator McKnight gave an update on the status of various projects. If a business that received grant money were to close,the EDA would not get the money back. If they were to move to another City,then we would have a better chance of getting the money back. Member Jolley asked about using the grant money to customize a building and does that make the building less saleable in the future. She cautioned that we watch out for that in the future. Member Wilson agreed we should review our policy and criteria for how we award the money. Member Jolley stated there needs to be some accountability for the recipient of the funds that if their business does not survive for a reasonable amount of time,that we get some recourse. That money could be used for another business that will survive. She was concerned that money is given freely and with no recourse. Member Zeaman added and with no oversight. We do not follow up to see how things are going. If things are starting to fail, perhaps we can provide some mentoring. Member Jolley stated recipients of the money should have a purpose that would add to its value no matter who takes over the building. Member Bonar noted on the other side we are administering a federal program for HUD that also has a maintenance of effort clause. If we do not spend the money, we lose it. Member Zeaman wanted to make sure we give the dollars the best chance of achieving a goal rather than haphazardly giving them money because we are going to lose the money. City Administrator McKnight noted the next steps for this item would be to work on the Marketing Plan. Staff will provide follow-up on the progress of the work being done by the grant recipients. Member Bonar noted 74 items is a long list for 208 working days. City Administrator McKnight had the same concern with the list developed from the Marketing Plan discussion; it may be too many. If we try to do them all, we won't get anything done. Member Zeaman stated if we put the items into a project plan with critical path items and push them out based on the staff available,then we should be able to have a workable plan. City Administrator EDA Minutes(Regular) January 27,2014 Page 9 McKnight had a concern with the timeline in the Marketing Plan having ten items being done every quarter for the next 2.5 years. 9. NEW BUSINESS a) Review CDBG Funds 2014 We will receive $38,867 in CDBG funds for Program Year 2014. The application was due to the Community Development Agency (CDA)by January 14, 2014, so it was taken to the City Council for approval on January 6, 2014, in order to meet the deadline. In 2013, we received $43,186. Staff recommended allocating the funds to the Commercial Rehab program as this was largely utilized in 2012 and 2013. Member Bonar noted as this is the first year for our property maintenance code, we could see some requests for residential rehab. We do have the ability to redirect dollars for a specific need. We need to spend $12,634 by May 1, 2014, and that requirement will be met by the Dakota County Lumber project and K&K Auto project. b) Approve Joint Powers Agreement—2014 "Open to Business" Program The Joint Powers Agreement is a continuation of the previous year's agreement. The fourth quarter report shows there were 10 business contacts in 2013. The program provides one-on-one technical assistance to business owners and entrepreneurs who are intending to establish, purchase, or improve a business in a participating City. The Business Advisor for Farmington is Laurie Crow and she is available at City Hall for meetings one morning every month or will meet clients elsewhere. The fee for the City to participate in this program is $5,000/year. Member Bonar asked if any of the business meetings have resulted in new entrepreneurship. Staff stated the fourth quarter report shows there are a couple businesses that worked with this program and have opened in Farmington. Member Wilson asked that the quarterly reports contain what Ms. Crow hears about our business community. Member Zeaman asked if there is a specific business that has been helped and has opened, if we could know about the business. MOTION by Wilson, second by Bonar to approve the Joint Powers Agreement to participate in the Open To Business program and to obtain more information on how we have seen a direct benefit to Farmington. APIF, MOTION CARRIED. 10. CITY STAFF REPORTS Member Wilson appreciated the good discussion tonight on the Marketing Plan. He would like the EDA to dedicate a separate meeting to discuss the Marketing Plan further. EDA Minutes(Regular) January 27,2014 Page 10 Member Bonar agreed and would also like to have a joint workshop between the City Council and the EDA. Member Zeaman suggested sending personal invitations possibly every three months inviting specific groups to the EDA meeting to talk with us. This could be bankers, Open To Business, FBA members, etc. The purpose would be to get more community involvement. If we are going to try to achieve this big plan, we will need a lot of help. These meetings could be a networking opportunity. Member Wilson liked the idea, but suggested perhaps it would be better to have this type of event during the day rather than during meeting time. 11. ADJOURN MOTION by Wilson, second by Bonar to adjourn at 8:40 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant Z rt. 00 co in co co co co co � 0 0 0 8 0 0 0 3 a 0 01 I- 0 0 , 2 2 2 2 2 2 2 © ( §§ f § § § D. § u m m LU W §LU O 0 0 0 0 0 o O Q 0 C.) 0 0 0 / z 0 z z o o o a) to 2, I I I ) ( I E m z ° 0 R B CD w A CO 5 c as U) z B 0 O. k 2 § § S 0 § -J E• Q. 0 0 2 z z 0 _ 0 u LU ) / / 0 0 ) ) a. co U) k1 \ 0 1 ) ) ) e ) 3 3 § ~ 2� 0 § t . N N N N � � N o o 2 U. O §s m CO 0_ 0 § ) § % § z j o 8 ■ b ) k 0 § 0 0 ( - co s co _ 2 a 0 , CO ~ co CO co z 0 _ 0 § 0 f ( m u a O § § > �0. 10 in e. k I i z 0 g cc « w d 0. o 0 o e § »u. k o § § § § r / / z 0 k & A a. ` § \ 0 co 0 ) U § § la k o 2 t w 2 1- c & ■ ƒ • z ■ co W 0 o ix o a d. w re , § § k / 7 Zt 2 § K o \ f o § S I § 7 rl K 0 LU " ) § § o cn k o _ co ƒ 2 § § k CD 0 re k ) m n n n co co- 8 co CO ® - - _ cp - 0 k - ° 0 N g IIt- t- I- % N 5 0 d i I - § CO § § N. r- ill 0 �o� iy��► City of Farmington l 0 430 Third Street Farmington,Minnesota X10 651.280.6800•Fax 651.280.6899 '�*,.A pRoOk wwwci.farmington.mn.us TO: EDA Members FROM: David J. McKnight, City Administrator SUBJECT: Marketing Plan DATE: February 24,2014 INTRODUCTION The Farmington Economic Development Authority(EDA)has been discussing the marketing plan created by Nemer Fieger at your December 2013 and January 2014 meetings. A number of issues related to the marketing plan have been placed on the table for discussion. This memo will help organize these issues DISCUSSION The marketing study performed by NemerFieger set 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). The study recommends that Farmington spend 2014 focusing mostly inwards, ensuring local businesses are committed to the city and when considering expansion,will make Farmington their first choice. The EDA spent considerable time discussing the study and related issues at your last two meetings. Some of the other items that were discussed and brought up for possible action include: 1. Business Visits • Better follow up with the businesses on requests • Better introduction on initial call to set up the meeting and more professional presentation on the day of the visit. • Better scheduling of the business visits. • Send correct staff member(s) on the business visits. 2. Industrial Land • Development of legacy plans with the Devney and Murphy families but we must have our thoughts/plans ready first. • Use hours offered by Tom Whelan to determine how to approach land owners. • Get our potential costs included in future capital improvement plans. 3. Other Issues • Channeling our consumers to shop local first. • Revive our shop local program. • What about the empty downtown buildings? • Spruce Street Corridor/Vermillion River Crossings vision already in place. • Do we have realistic rents downtown? • Long term land use west of downtown. • Gather information from businesses on reasons for staying and expanding in Farmington. • GROW issues revisited. • Heritage Preservation Commission access to funding for way fmding signs. • Banners highlighting businesses. • Who owns the vision at the staff level? • 1/3/5/10 year plans. • Survey what do we want to understand better of the businesses? • CDBG follow up on grants issued and accountability if they close/relocate. Discuss long term impacts of any future grants awarded. • Do we contact businesses when we hear they are closing? With the direction of the marketing plan to focus on Farmington and our current businesses and the discussion at the January 2014 EDA meeting that focused on being better prepared for our business visits, staff was asked to prepare a survey that could be sent to our local business. Staff is proposing a general survey that could include the following questions: 1. What information about your business would you like us to share when we get asked about you? 2. What is your overall opinion of Farmington as a place to do business? Excellent, good, fair,poor,no opinion. 3. Describe your satisfaction with these business climate factors. Are you pleased, okay or wish for improvement? Financial services, other business/professional services, land/site costs,proximity to customers,proximity to suppliers,labor,property taxes,permit process. 4. Briefly describe changes you are planning for the next three years in the area of employment,facility size or location,production process and other. 5. Please rank the importance of the following factors in choosing and/or remaining in Farmington-business/professional services, land/site costs,proximity to customers, proximity to suppliers,distribution/collection costs, labor costs, education,health care, quality of life, other. 6. Do you presently have room to expand at your present location? 7. Do you have concerns or suggestions for improvements in Farmington government in the following areas-police, fire,water/sewer,zoning/permits,other. Please be specific. 8. Are there any other comments you would like to share? City staff is very open to having the questions changed or modified. Our intent with the questions is to find out what they need from this market to continue to be successful with specifically looking for anything the city can do to help in this process. Other work that staff is looking for direction and timing on from previous discussions include: 1. What is the message/theme(why are we doing this?) for our work in 2014 of ensuring that Farmington businesses are committed to the city and fording out what we can do to assist this effort? This will be our consistent message during our visits. 2. What efforts do you want to make in regards to future land for industrial development? 3. Do you want a financial education on the EDA budget and fund balance level? Are you ready for a financial five year plan? BUDGET IMPACT TBD ACTION REQUESTED City staff is looking for direction on the business survey questions,message for 2014, direction on industrial development and your thoughts on a financial education of the EDA fund. Respectfully submitted, David J. McKnight City Administrator