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HomeMy WebLinkAbout04.28.14 EDA Packet #6.4 •A PRO7N0P AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 28, 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 (3/24/14 Regular) Approved b) Bills: 3/24/14—4/27/14 Approved c) Preliminary Financial Report 2013 and 2014 Information Received d) Residential Building Permit Report Information Received e) First Quarter Open To Business Report Information Received 7. Public Hearings 8. Continued Business a) Business Survey Results and Business Visit Schedule Schedule Business Visits 9. New Business a) CDBG Update Information Received b) Certificate of Completion ProTemp, Inc. and Dale and Leslie Pettis Approved 10. City Staff Reports/Open Forum/Discussion 11. Adjourn Vi kit:, '4.61; i AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 28, 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 (3/24/14 Regular) Page 2 b) Bills: 3/24/14—4/27/14 6 c) Preliminary Financial Report 2013 and 2014 7 d) Residential Building Permit Report 9 e) First Quarter Open To Business Report 11 7. Public Hearings 8. Continued Business a) Business Survey Results and Business Visit Schedule 13 9. New Business a) CDBG Update 21 b) Certificate of Completion ProTemp, Inc. and Dale and Leslie Pettis 25 10. City Staff Reports/Open Forum/Discussion 11. Adjourn MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting March 24, 2014 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson,Bonar, Jolley, Wilson,Zeaman Members Absent: None Also Present: David McKnight, City Administrator; Robin Hanson, Finance Director; Cynthia Muller,Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Wilson, second by Zeaman to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Zeaman, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (2/24/14 Regular) b) Approved Bills 2/24/14—3/23/14 c) Received Residential Building Permit Report APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. CONTINUED BUSINESS a) Marketing Plan Update Staff mailed surveys to 173 businesses and they are due by April 4, 2014. As of today, five have been received. Staff will summarize the comments and bring them to the EDA at the April meeting. The Farmington Independent will also place an article in the newspaper regarding the survey. The survey will be the framework for the business visits which will be scheduled at the April EDA meeting for May visits. 9. NEW BUSINESS a) EDA Budget Update/Fund Balance Finance Director Hanson gave an overview of the current EDA budget. There are two sources of revenue for the EDA; interest on investments which is$2,000 for 2013 and a tax levy transfer of$40,000 (1/12 of this is received each month). 2 EDA Minutes(Regular) March 24,2014 Page 2 There were $42,000 in expenditures in 2013. The majority was programming expense at$24,500. Two large expenditures for 2014 include legal services for the Vinge loan closing and$5,000 for the Open To Business participation fee for 2014. It will be up to the EDA to determine what they want to do with the programming expense dollars of just under$20,000. The balance sheet showed three years of history. In 2011 there was a$140,000 deficit in the EDA and it owed$190,000 to one of the other funds for library improvements. In 2012 there were funds budgeted to be transferred in so the EDA had enough cash to pay off the loan in full and still have some left over which resulted in a positive cash balance of$60,000. In 2013 in addition to the levy transfer,the CEEF loan was repaid in full and the EDA also received some increment tax dollars. Similar monies were received in 2011 which were also transferred to the EDA. The cash balance is $153,000 at the end of 2013. The Vinge loan was paid off in February 2014 so the EDA now has $183,000 in cash. The EDA needs to decide how to invest this, or to spend it, or offer low interest rate loans. Chair Larson asked staff and the EDA for ideas on what to do with the funds. Finance Director Hanson stated offering the funds for improvements is a one-time event and then the money is gone. The EDA could do 0% loans for three to five years so you would at least get the principle back. You could also offer 2% to 3% loans to get some interest back. It would be good to have a three to five year plan to help with budgeting. Member Jolley asked about the EDA's philosophy to accumulate funds to acquire some industrial land and to install improvements. This was a high priority for the strategic plan. She recommended accumulating funds rather than use them. If the EDA decides on a time horizon to save the funds, staff will invest them accordingly. Member Wilson noted the ongoing source of revenue is the $40,000 transfer from the tax levy. Council could increase or decrease this amount when setting the budget. Finance Director Hanson noted all EDA loans have been paid;the EDA does not owe any money. Member Bonar suggested saving the funds for the remainder of the year. We will have a new Community Development Director that will need time to adjust and we do not want to fall into a deficit again. The EDA agreed to save the funds and let them accumulate. Member Wilson noted the EDA will be meeting with the Council in May. He wanted to hear directly from them what their thoughts are on what areas we can be a component of to go along with their plans. 3 EDA Minutes(Regular) March 24,2014 Page 3 10. CITY STAFF REPORTS a) Activity Update City Administrator McKnight gave an update on several items. Five applications have been received for the Community Development Director position. The position closes on March 31,2014. Staff met with Valmont Industries to discuss their expansion plans in Farmington. Valmont will be receiving a job creation fund award from DEED. This project started with Lisa Franxman and Vicki Stute, representing the Dakota County Regional Chamber, making visits to the industrial park. The award is up to $229,000. Farmington was the only metro city to receive this award. Valmont will bring 10 to 15 new jobs. Building permit information was included in the packet. The Sunrise Ponds replat is in process right now. It is located on Cambodia Avenue between 210th and 212th Streets. There is one home being built in Swanson Acres. Regarding the potential hotel, City Administrator McKnight spoke with the hotel developer and they are working with the land owners. Assessments continue to be an issue and City Administrator McKnight encouraged him to talk with staff. Regarding CDBG money, we had budgeted$38,867 for commercial rehabilitation and the CDA has informed staff we will be receiving $42,717. Member Wilson asked if we have a sense of the amount of traffic with the Parade of Homes close to this area. City Administrator McKnight will contact the Builders Association and Realtors Association. There are developments in Lakeville close to the Farmington border. Member Wilson suggested keeping realtors in Farmington updated with EDA plans. Member Wilson asked if there is any concern about running out of residential lots. Currently we have 227 lots available, which includes Sunrise Ponds and Executive Estates. Staff does receive questions about the Seed development. That area will be developed when the family is ready to develop it. Sunrise Ponds contains 59 lots. Member Bonar stated the Seed family did renew their PUD and in May 2016 they do have an obligation to begin the first phase of development. The May work session with the Council, EDA and Planning Commission is to talk about Vermillion River Crossing,the Seed property, industrial, MUSA and the big picture and all the pieces that fit into it. Moving forward we will need a common vision among all those groups to succeed. Member Wilson felt it would be helpful to know any plans the City has with regard to level of bonding or borrowing if a company wants to come here. 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N N (p m�p p m {p It 1 N RI V.728822 V'W h`3ON > L 0 N �p Z u22 f�MM«P21(O4g8 '2N S pppp aa go co �p Sd .^-• NMM CO CO yr O Co CO m OC90-N W n N CO CV cm nN W CO o 455 C«N C)< < C W 32292; 3fOm�2NNCN m< a M 70m- cp N us NNnm-m- N 1N -rr07 s-.-V CO CO „«< < d �nrowgoCVgo n°°r"a.Ns-WN •0, 74 E 1 0 N pmp 0 W co C oh 03 N I.CO C)`C m-470- C C) < Cr. i 0 °o�s0o °o00§000000 g N N N N N N N N N N N N N N N S 10 4iPk c�► City of Farmington 430 Third Street U` ±� Farmington,Minnesota 9 651.280.6800•Fax 651.280.6899 moo www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller, Executive Assistant SUBJECT: First Quarter Open to Business Report DATE: April 28, 2014 INTRODUCTION/DISCUSSION Attached is the First Quarter Open to Business (OTB)Report for Dakota County. The report shows there were five inquiries in Farmington. A highlight for Farmington is that OTB continued to support a local existing business with cross promoting and networking. These creative conversations have enabled this client to expand his business while supporting other small businesses as well. OTB has received a steady stream of calls,however, OTB notes some recent changes at the city have left some confusion for new/existing businesses. This issue will be resolved with the hiring of a Community Development Director. ACTION REQUESTED For your information. Respectfully submitted, Cynthia Muller Executive Assistant 11 `OPEN TO BUSINESS Dakota County 1/1/14—3/31/14 Clients Served: Client City: New Entrepreneurs 31 Apple Valley 7 Burnsville 9 Existing Business 27 Eagan 10 Farmington 5 Total Entrepreneurs 58 Hastings 3 Inver Grove Hts 7 . Lakeville 4 Inquiries 77 Mendota Heights 1 (Requests for information/referral,not a formal client) Rosemount • 5 Financing: S.St. Paul 1 W. St. Paul 2 Provided (Dakota-County Businesses) Townships 1 Number 1 Undecided Location 3 Amount $30,000 Industry Segment: Provided (Dakota County Residents) Retail 4 Number 0 Service 25 Amount $0 Food 14 Manufacturing 2 Microgrants Technology 0 Number 0 Construction/Related Trades 4 Amount $0 Referral Source: Credit Builder Loans Number 1 Municipalities/CDA 21 Chamber 3 Total $30,000 Internet 2 Friends/Family 4 Other(Banks,Schools, Etc.) 14 Requests/In Process Number 0 Hours of Direct Service: Total Request $0 1st Quarter 546.5 Facilitated/Leveraged Loans 2°d Quarter 0 Number 3 3rd Quarter 0 Amount $1,350,000 4th Quarter 0 12 *Pkiz, City of Farmington 430 Third Street v` z Farmington, Minnesota 44 +6 651.280.6800•Fax 651.280.6899 4).'^""°bo www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller,Executive Assistant SUBJECT: Business Survey Results and Business Visit Schedule DATE: April 28, 2014 INTRODUCTION An Economic Development Business Survey was sent to 173 businesses so the EDA and staff could learn more about their concerns and services of most importance to them. DISCUSSION Responses were received from 15 businesses. A summary of the responses is attached. A recurring comment is that more businesses are needed. The city needs attractions and shopping options to give customers a reason to come to Farmington. Several businesses plan on expanding or increasing their number of employees. It appears that the Open to Business program needs to be advertised more to existing businesses to assist with loans. This program could also be helpful to those wanting to expand. A welcome packet was mentioned for prospective businesses. A concern is the amount of available office space and infrastructure for telecommunications. There were a couple comments on snow plowing and more explanation needs to be given on the logic behind the snow plowing process. Proximity to customers and land/site costs were the two most important factors in businesses choosing to remain in Farmington. Proximity to suppliers and distribution/collection costs ranked at the bottom of the list. There were nine businesses requesting a business visit. Staff is recommending starting these visits in May. There will be two visits for a total of two hours. Staff will request the visit be held with the main business owner. Any follow-up required will be provided to the EDA following the visit. EDA members should bring their calendars to the meeting to determine who is available and when. ACTION REQUESTED Review and discuss the survey responses. Provide availability for May business visits. Respectfully submitted, Cynthia Muller Executive Assistant 13 EDA Business Owner Survey Summary April 7,2014 As of April 7,2014, 15 surveys have been received. Of those, 9 would like a business visit. Following is a summary of the results: 1. Overall opinion of Farmington as a place to do business. Businesses rated this as excellent to fair,with ten responses rating it as good. Additional comments provided: Farmington has been great for my business. We do most of our business off referrals and people in town are happy to support us. There are always a lot of hometown activities for us to participate in. We like the business environment and the cooperative support for local business. We are concerned with the amount of viable office space in town for us and new businesses coming to Farmington. Where do new businesses go for professional office space? Not many options. We like our current location, but if we wanted to make a change, no good options and would be forced to look outside of Farmington. The City of Farmington has several good options. There are not many updated buildings, office meeting spaces, casual meeting spaces (coffee shops). The city feels tired and worn. Lack of many dining options. Maybe having a designated mixed business district with retail/restaurant/office space can add to the vibrancy of Farmington. Needs more attractions. Many people say they don't think to do business in Farmington because there are not a lot of shopping options. No"welcome pack" given to prospective businesses looking to set up shop in Farmington. No information/services for home based businesses or small start-up businesses (i.e. business incubator or shared office rental spaces). City Hall staff being more local minded when suggesting businesses to visit/use. Need more commercial/industrial based business in Farmington. 2. Describe your satisfaction with these business climate factors (pleased, okay,wish for improvement). Financial Services—6 were pleased, 4 were okay, 2 wish for improvement Comments: Several banks in town-good. We contacted numerous times for help with front sign and there was not enough funds/support for signage. Would be nice to be able to get loans for my business. 14 Other Business/Professional Services—5 were pleased, 5 were okay Comments: Lots of restaurants—they are great. Health care, food services, specialty shops, grocery store, coffee shops, gas stations— good. Would like to see an even stronger downtown. Could use more professional business training resources. Land/Site Costs—2 were pleased,2 were okay, 2 wished for improvement Comments: Was good for our company. Concern for us going forward. Proximity to Customers—8 were pleased,2 were okay, 1 wished for improvement Comments: Great for those of us on the north. Difficult for downtown/east side I would think. Very good residential/business mix. Good. Our customers range from Farmington, Lakeville,Apple Valley,Rosemount, Northfield,Burnsville and Hastings. Most of our clients are outside of Farmington. The roundabout had positive impact on our business connecting Pilot Knob and highway 3 folks. Labor Pool—2 were pleased, 3 were okay, 5 wished for improvement Comments: Our industry has great supply. So far good for our business,but concern for future business growth. Property Taxes—7 were okay, 1 wished for improvement No comments received. Permit Process—3 were pleased, 5 were okay, 1 wished for improvement Comments: Needs too much detail. 3. Businesses were asked to rank the importance of the following factors in choosing to remain in Farmington. (10 being most important, 1 being least important) (Summarized as 10-8 rankings are top third,7—4 rankings are middle third,3-1 rankings are bottom third) 15 Business/Professional Services—5 rated this in the top third, 6 rated this in the middle third, 3 rated this in the bottom third Land/Site Costs— 10 rated this in the top third, 3 rated this in the middle third, 1 rated this in the bottom third Proximity to Customers— 12 rated this in the top third, 2 rated this in the middle third Proximity to Suppliers—2 rated this in the top third,4 rated this in the middle third, 6 rated this in the bottom third. Distribution/Collection Costs—2 rated this in the top third,4 rated this in the middle third, 5 rated this in the bottom third. Property Taxes—6 rated this in the top third, 4 rated this in the middle third, 3 rated this in the bottom third. Labor Costs—4 rated this in the top third, 4 rated this in the middle third, 5 rated this in the bottom third. Education—5 rated this in the top third, 5 rated this in the middle third,4 rated this in the bottom third. Health Care—5 rated this in the top third, 6 rated this in the middle third, 3 rated this in the bottom third. Quality of Life—8 rated this in the top third, 5 rated this in the middle third, 1 rated this in the bottom third. 4. Do you have room to expand at your present location? 7—yes 8—no Comments: Expand business—yes; size—no. Yes,but the landlord doesn't want to spend the money to expand. Also there aren't any sites in Farmington that are feasible for our business at this time. Yes,we have built that aspect into our new building. No,we would have to relocate the business next to us. We rent,but may own in the future. This may be a concern in the future. No, our building is directly between two residences. 16 5. Briefly describe changes you are planning in the next three years in the area of employment,facility size or location,production process and other. Change location,acquire land and build. Would consider increasing size by 1/3 to offer private party functions. Finding a suitable location and facility and expanding our inventory. As for employment we will be looking for full time and part time employment. Continue to grow which will allow us to add staff and see more patients. Getting sign up front. We are planning on adding an additional truck pit and manufacturing area within our footprint. We hope to continue to grow. If our growth rate continues we will expand. Increase staff size. Will need to expand in future (5 years?)but not sure where that will be. Our business will double in size over the next 3 years given current or better economic conditions. With growth of business additional employees and a bigger space can be considered. Our goal is to offer fresh baked treats and hand-crafted sandwiches where baked goods are baked in the store. Also to offer delivery service to consumer orders (not just catering orders). 6. Do you have concerns or suggestions for improvements in Farmington government in the following areas related to your business operations? Police— Great department. Would be willing to participate in any training exercise they need. Great group. Very pleased with services provided. Fire— Personnel from this department show great enthusiasm and should be commended. Would be willing to participate in any training exercise they need. Great group. Very pleased with services provided. Streets/Utilities— Having paved alleys. The snow and ice buildup make entering and exiting difficult. 17 Huge concern with internet access and fact that only Charter and Frontier are the local providers. Almost did not settle in Farmington because of lack of options for telecom providers. I am concerned that the services and access for our disabled citizens is greatly limited in terms of parking,ramps, sidewalk access. Our hope is that the city's commitment to all of our citizens increases. Why are bicycle and walking paths plowed before the streets? Whoever resurfaced highway 3 last summer did a horrible job! Some streets should be redone. They do an excellent job. Very pleased with services provided. Still don't understand how the snow removal in the downtown section(snow pile in the middle of the road) is handled. It's hard to park and get into shops. Planning/Zoning— A business park would help define the role of the area. The intermixed residential/business on Elm Street works on a small scale and is great for the small town charm. If Farmington wants to take the next step to becoming a growth city like it's neighbors (Apple Valley, Lakeville, Rosemount) it will need to redefine itself as a growing large city. The biggest problem with Farmington growing businesses is the design of Farmington. Until you give people in the north a reason to drive south,they will continue to go to Apple Valley/Lakeville. Stop senior housing/hotel-type. Increase business at Pilot Knob and 50 and go retail/dining. Residents are not driving north for senior housing and hotel, but would love to have a place to buy things without leaving town or a restaurant nearby. Give them a reason to stay in Farmington and they will. We hear that all the time. No concerns except for one. If we start to have patients pay for parking downtown that would be a huge negative for us. I would rather have our property tax increase versus a user tax. A better explanation or information about future planning of the city and how it will affect consumer travel patterns related to business locations. Building Inspections— A better understanding of building codes that would affect future expansion of a facility (what is practical and necessary towards the end goal of the facility). Economic Development Authority— Key for future growth of our business and others wanting to move to Farmington. Allow business owners that don't live in Farmington,but own a business to sit on EDC. 18 Also appoint someone from the city to be a liaison to help any new business in town with any concerns or questions, if the business wants the help. Grants or loan programs? What do they do? Need more business minded/experienced members that have owned/operated businesses in retail,industrial and hospitality. Other(Finance,Administration, Engineering, Parks/Recreation, etc.)— Parks and Recreation—Farmington needs a park—a larger one where people can gather. Pleased with services provided. Like to see these services visit Farmington businesses to help understand the perspective of costs needed to run a business. Perhaps both parties can share resources to help save money and promote the other. 7. Would you like to have a business visit? 9 businesses requested a visit. Comments: The City of Farmington has allowed us an opportunity to provide services here in Farmington and we are grateful for the opportunity. Right now,how we do is heavily dependent on our effort. The last visit was helpful for both parties. 8. Other comments. Farmington is a great place to work and live. We love having the office here. To continue the growth of business in the community much more has to be done from an infrastructure perspective. Telecom and office space is a problem right now. Excited to see the growth this summer with housing. We have done our best to donate local and shop local in the 20 years we have been here. We are trying to understand why the city gives all its business to our competition and not dividing it up. The only time they come to us is when they don't have their item. I'm happy to own a business in Farmington. Like to see the"Grow Farmington"effort promoted more. Need money budgeted by the city to champion this effort. 19 Business Visits to be Scheduled Downtown Mr. Bernie Schwab Spruce Valley Payroll& Services 115 Elm Street Dr. Lam Tu Park Dental Farmington 511 Elm Street Highway 3 Dr. Brian Betts Betts Family Chiropractic 625 Eighth Street Mr. Ron Commins Investment Solutions, Roundbank 3380 Vermillion River Trail Mr. Kirk Zeaman Ground Round Grill & Bar 20700 Chippendale Avenue W Mr. David Hartnett Dunn Bros Coffee 20700 Chippendale Avenue W Pilot Knob Road Dr. Pam Rupnow Family Vision Clinic 19645 Pilot Knob Road, Suite 106 Dr. Eric Rice HealthPro Chiropractic 19685 Pilot Knob Road, Suite 260 Industrial Park Mr. Jim Morris, Plant Manager Mr. Bill Cook, Controller Valmont Industries 20805 Eaton Avenue 20 �o�Fiy��, City of Farmington o 430 Third Street �` � Farmington,Minnesota 651.280.6800.Fax 651.280.6899 ^Poo www.cifarmington.mn.us TO: EDA Members FROM: Tony Wippler,Planning Manager SUBJECT: CDBG Update DATE: April 28,2014 INTRODUCTION/DISCUSSION Attached for the EDA's information are two spreadsheets (spreadsheet A -prepared by the CDA and spreadsheet B — prepared by staff) that show the current fund balance of Community Development Block Grant [CDBG] money that the City has available. Spreadsheet A shows a total of$45,429.64 in available CDBG money, however, if you look at spreadsheet B the entire $45,429.64 is currently allocated to approved projects (i.e., Long Branch and Dakota Lumber Commercial Rehab Grants as well as the Senior Center public service). The City has been informed by the CDA that Farmington will receive $42,717 as the fmal 2014 CDBG allocation. It should be noted that the entire $42,717 has been earmarked for the Commercial Rehabilitation Grant program. So, until the $42,717 becomes available on July 1, 2014 there is no CDBG money to support new projects. Lastly, staff wanted to provide the EDA with a review of CDBG funded projects from 2013 and give an update on the status of those projects. • Baldy's BBQ received $15,000 in Business Development Grant funds (agreement signed on February 28, 2013) for acquisition of new equipment. The new equipment has been purchased and funds expended. The business is currently open. • Triton Properties, LLC received $7,320 in Commercial Rehabilitation Grant funds (agreement signed on March 4,2013)for the removal of three (3)underground petroleum storage tanks at the property located at 705 8th Street. The tanks have been removed and funds expended. A business has not been opened on this property. • Dakota County Lumber Company received $19,000 in Commercial Rehabilitation Grant funds (agreement signed on October 7, 2013) for the installation of a fire suppression system as part of their business expansion. The project is currently underway and is getting close to completion. The funds have not been expended for this project. • Janssen, Incorporated received $3,200 in Commercial Rehabilitation Grant funds (agreement signed on October 7,2013)to assist with the roof demolition and replacement of a canopy at the property located at 1024 8th Street (K&K Auto Ranch). The roof repairs and replacement of the canopy have been completed and funds expended. 21 • Long Branch Saloon and Eatery received$14,720.64 in Commercial Rehabilitation Grant funds (agreement signed on October 7, 2013) for the removal of the existing green canopy, repair and residing of the existing brick, removal of the façade's existing glass and glass door and the installation of tempered glass. The project has been completed and the City and the applicant are working through the reimbursement process with the CDA. ACTION REQUESTED None,this is being provided for information purposes only. Respectfully submitted, Tony Planning Manager 22 A 0 0 0 0 0 0 ,, O N O CO O 0 + ov6 Ili 6 o if3: o N- N O L r T o a 2 P_ O cj O O O 0 CD O O O CO 0. 0 0 0 0 0 0 O (6 N id ER N EA P.-. ER N �. M r >' I- D ER N a -0 _0 O O d C (0 0 CO O ° 4- O O C N EA- N (D a) Q N- N. CO N ._ U) N M ,- j r C') M CO O CO M N EA- Es d' ( O 06 LL u) LL 0 J 0 o N O O O o C 0 O O O O N ER O O O r O O O O CO l- C 0) N 0 N O C M 0 O O O CO O O O O O ° CO O 6) O O CT O O EA- O O O Q r ti. ~ 0Op N O 0 r (� 0) Q N r Ef} EA C° (A- *k 9 `> J M O 0 0 O (n O py r O 0 0 O C C O O '- O O r Cn N >- cf) ER O O 1--- Or N- CO -0 o CO 0 d 0) N L (U E ( 2 _ Q o ) N ) U U) Cl) W 0 Z Q J Q DO a Z o u rn 1 F F- CO d' 0 CV o -C w r >, C a) Q' 0 w O d cn u W E d LO _0 In F_ CO Q E N }• C Q N (a C -O >- o Nn N M U) CO U U > m y. o .� C o o w Cl) CO - - C 0 ca CD - 3 O U o L ~ w o o iii m T W a ) L ctS Z (U r j N '6 Ur 'C as N LL O CU Q .j (I) � D F., 0. N E m Z .� CI) o _Z C •U) U u) .� J m W M G Z U a a) o � � � oow > E 23 u. Q U co a � H F- d LL I-- �' Q CDBG FUND BALANCES Approved Activity Activity Fund Balance Residential Rehabilitation: $0.00 Money Available for New Projects: $0.00 Commercial Rehabiliation Grant: $33,720.64 Dakota Lumber Grant to be paid: $19,000.00 Long Branch Grant to be paid: $14,720.64 Money Available for New Projects: $0.00 Business Development Grant: $0.00 Money Available for New Projects: $0.00 Public Service - Senior Center: $11,709.00 Senior Center: $11,709.00 Money Available for Other Public Services: $0.00 Total CDBG Money Available: $0.00 24 4itavi City of Farmington v z` 430 Third Street pia Farmington,Minnesota 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: EDA Members FROM: Tony Wippler,Planning Manager SUBJECT: Contract for Private Sale - Certificate of Completion (Pro Temp., Inc. and Dale Pettis and Leslie Pettis) DATE: April 28,2014 INTRODUCTION/DISCUSSION On April 3, 1995, a Contract for Private Sale was entered into by the HRA (now the EDA) and Pro Temp., Inc. and Dale & Leslie Pettis (Developer) for the development of Lot 5, Block 1, Farmington Industrial Park (21210 Eaton Avenue). The Developers legal counsel, Campbell Knutsen, has requested that the EDA review and approve the attached Certificate of Completion as provided for in the Contract. According to Section 4.5 of the Contract, the HRA, (now the EDA) will provide the developer with a Certificate of Completion once the EDA determines that the construction of the minimum improvements have been completed and meet the terms and conditions of the Contract. The minimum improvements are defined in the Contract as "the Improvements collectively constituting approximately 9,600 sq. ft. of Commercial / Industrial Space". All improvements have been completed and a full Certificate of Occupancy was issued on July 26, 1995 for the 16,160 square foot building located at 21210 Eaton Avenue. ACTION REQUESTED Approve and execute the attached Certificate of Completion. Respectfully submitted, Tony Wippler, Planning Manager Cc: Andrea McDowell Poehler, Campbell Knutsen,P.A. 25 CERTIFICATE OF COMPLETION WHEREAS,the Housing and Redevelopment Authority in and for the City of Farmington, Minnesota, a Minnesota municipal corporation("HRA") entered into that certain Contract for Private Sale dated April 3, 1995 and recorded April 24, 1995 as Document No. 1274975 ("Contract")with Pro Temp.,Inc.,a Minnesota corporation,and Dale Pettis and Leslie Pettis ("Developer")for the development of certain lands in the City of Farmington with said lands being legally described as follow,to-wit: Lot Five(5),Block One(1),Farmington Industrial Park,according to the plat thereof on file and of record in the office of the County Recorder in and for Dakota County,Minnesota, ("Property"); and WHEREAS,by City of Farmington Ordinance No. 005-541,the HRA was reformed as the Farmington Economic Development Authority("EDA")in August,2005; and WHEREAS,pursuant to said Contract,Developer agreed to construct certain improvements on the Property as further defined in the Contract(hereinafter Improvements);and WHEREAS,upon completion of the Improvements as required by the Contract,the EDA is required to issue a Certificate of Completion certifying that Developer has completed construction of the Improvements in accordance with the agreed upon plans and improvements for the Property,thereby terminating Developer's obligation in respect to those portions of the Contract pertaining to construction and development of the Property; and 1 175820v1 26 WHEREAS,Developer has completed construction of the Improvements and development of the Property pursuant to the plans, specifications,terms and conditions as stated in the Contract. NOW,THEREFORE,the EDA hereby states,acknowledges,confirms and certifies as follows: 1. That Developer has constructed upon the Property the Improvements as agreed to in the Contract. 2. That the completion of construction of the Improvements is hereby certified by the EDA. 3. That those parts and portions of the Contract between the parties pertaining to construction of the Improvements are hereby stated,acknowledged,and confirmed to be satisfied and completed. 4. That the issuance of this Certificate of Completion by the EDA does not effect, modify, or terminate the additional and continuing duties, covenants,and obligations of Developer, its successors and assigns, as stated in the Contract. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Dated: By: Todd Larson, Chairperson By: David McKnight,Executive Director 2 175820v1 • 27 STATE OF MINNESOTA ) (ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 2014, by Todd Larson and David McKnight, respective the Chairperson and Executive Director of the Farmington Economic Development Authority, a public body corporate and politic organized and existing under the laws of the State of Minnesota, on its behalf. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan,Minnesota 5:5121 651-452-5000 AMP/cjh 3 175820v1 28