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09.22.14 EDA Packet
AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING September 22, 2014 6:30 PM Room 170 Todd Larson, Chair; Geraldine Jolley, Vice -Chair Douglas Bonar, Steve Wilson, Kirk Zeaman 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Meeting Minutes 8/25/14 Regular Meeting (b) Monthly Statements - August 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Dakota County TIF Policy (b) CDBG Municipal Subrecipient Agreement (c) Marketing Plan Update 9. DIRECTOR'S REPORT (a) September Director's Report 10. ADJOURN 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: Adam Kienbeger SUBJECT: Meeting Minutes 8/25/14 Regular Meeting DATE: September 22, 2014 INTRODUCTION/DISCUSSION Attached are the minutes from the August 25, 2014 meeting. ACTION REQUESTED ATTACHMENTS: Type o Backup Material Description Meeting Minutes 8/25/14 Regular Meeting MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting August 25, 2014 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Jolley, Wilson, Zeaman Members Absent: Bonar Also Present: Adam Kienberger, Community Development Director, Tim Pitcher, Council Candidate. 2. PLEDGE OFALLEGLANCE 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 Wilson, second by Zeaman to approve the Consent Agenda as follows: a) Approved Meeting Minutes — July 28, 2014. b) Monthly Statements (June & July). APIF, MOTION CARRIED. 7. DISCUSSION ITEMS a) MN Marketing Partners FAM Tour Summary — Director Kienberger indicated that FAM stands for "familiarization ". The tour highlighted what Minnesota has to offer. Most of the site selectors had never been to or done business in Minnesota. Director Kienberger noted that a couple of comments relating to Minnesota's strengths included, pride in our architecture and appearance, top notch infrastructure, a "you get what you pay for" value statement in regards to taxes. The following are key takeaways from the discussions held at the wrap -up meeting in Chaska: • We need to do a better job of telling "our story" o Minnesota modest works against us on the national stage • Capitalize on strong workforce numbers and demographics by securing better data o This is the proof of the message • Note the financial health of organization and region o MN is comparatively better off from a financial health perspective than most of the country • Everybody has quality of life...differentiate • Anything that can be presented to indicate a minimized risk EDA Minutes (Regular) August 25, 2014 Page 2 o Businesses /site selectors don't like unknowns • Importance of BR &E programs /communication with businesses o Don't want to take a company to a community where it will be "forgotten" • Link with training opportunities /educators is important • Be the convener of groups and resources • Promote Made in MN video • Get private sector testimonials /interactions • Address skilled labor shortages • Strong regional focus /positive collaboration • Pride in architecture /visual appearance — sets MN apart o Very clean look • Infrastructure is key b) Marketing Plan Update — Director Kienberger provided an update to the committee. 1. Met with Valmont regarding training and workforce needs; 2. Recommending the formation of a BR &E subcommittee to help with the planning and strategy of conducting business visits; 3. Currently exploring the CDA's Redevelopment Incentive Grant (RIG) program criteria for recommendation of an application for downtown development study later this year (Member Zeaman suggested rephrasing so ALL businesses in Farmington are included, or remove "downtown" and refer to it by its zoning classification /district); 4. Attached "Brandtender" information for future discussion regarding communicating with our customers; 5. Farmington is now a MNCAR member (MN Commercial Association of Realtors/Real Estate). 8. DIRECTOR'S REPORT - August Report — Dakota County TIF Policy Dakota County is currently revising their tax increment financing policy — the most current draft is attached. This has been a topic of concern for many of the cities in Dakota County over the past several years as the policy is not supportive of cities creating economic development TIF districts. CDBG/Riste Property Update Last month we discussed options for selling or developing this parcel in Downtown Farmington. The Dakota County CDA has clarified that prior to a sale, an appraisal would be required and that 76.9% of the appraised value would need to be recaptured by the Farmington CDBG program as "program income ". Essentially this means that any sort of incentivized sale of the property would still need to be made whole for the CDBG program. Hotel Update There is a new project manager at BriMark Builders who is managing the Farmington hotel project. The transition has caused a slight delay, but they assure us that everything is still moving forward. EDA Minutes (Regular) August 25, 2014 Page 3 Dakota County Broadband Study Update Please find attached an update from broadband consultant Design Nine on the status of the county -wide broadband study. Building Permit Reports Please find attached the monthly building permit report provided by the Planning Manager. Permit activity is continuing at a steady pace. Foreclosure Update Please find attached the July foreclosure update provided monthly by the Dakota County CDA. Like the other cities across Dakota County, Farmington continues to notice a dramatic decrease in both Sheriff Sales and Notice of Pendency Filings. Property Owner Meetings Staff recently met with two families that own large industrial zoned parcels in town. The lines of communication are open and both parties have expressed general interest in listening to potential development proposals. 9. ADJOURN MOTION by Jolley, second by Zeaman to adjourn at 8:09 p.m. APIF, MOTION CARRIED. Respectfully submitted, Sue Miller Administrative Assistant TO: FROM: SUBJECT: Monthly Statements - August DATE: September 22, 2014 INTRODUCTION/DISCUSSION City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci. farmington.mn.us Economic Development Authority ACTION REQUESTED ATTACHMENTS: Type Description n Backup Material Check Summary n Cover Memo Monthly Budget Statement 9/17/2014 10:32:39 CITY OF FARMINGTON O O l0 0 N 0 v CC l0 O 0 Council Check Summary Note: Check Amount may not reflect actaul check total due to sequence of data Co Dept Div BU Description Account Description O C O z O 0 Supplier / Explanation C O 0 E Q 0 O N l6 lh 41 HRA/ECONOMIC DEVELOPMENT 02000 03 MILEAGE REIMBURSEMENT O CO CD O 0 0 N 131185 AUG'14,27 EXP 50.18 AUG'14 MILEAGE REIMS, MTGS HRA/ECONOMIC DEVELOPMENT 02000 03 TRAINING & SUBSISTANCE 2000 6470 5.00 AUG EDAM EVENT PRKING O N In CARDMEMBER SERVICES 0 m N O 20140828 8/28/2014 HRA/ECONOMIC DEVELOPMENT 02000 03 TRAINING & SUBSISTANCE 130762 4798...1668AUG'14 2000 6470 40.00 7/18 VISA, EDA EVENT REGISTR HRA/ECONOMIC DEVELOPMENT 02000 03 TRAINING & SUBSISTANCE 130762 4798...1668AUG'14 2000 6470 30.00 7/31 VISA, EDA NETWRK REGISTR HRA/ECONOMIC DEVELOPMENT 02000 03 TRAINING & SUBSISTANCE 130762 4798...1668AUG'14 2000 6470 75.00 7/31 VISA, EDA FALL FORUM REGI H 1- (n 0 0 CO O O N Ti O v oe o000o e (V QN $ oo MM (O 'Cr 0 n O M c 00) 000 CO 0) 0 (DO co ❑ V 4 0 Q W (O Or N o N (0 N O V N O ' N pop ' 0 C C V V N 0 My EA v EA m CO S— 0) CO O r CV N ' 0) r N - f - 69 n NU (O 0 co 0 M Z U 0 1) V) 0, 0 0, (0 2 LL $186,227 $187,452 $185,742 $ 188,880 $177,258 $ 195,198 $ 210,199 $ 213,111 $ 216,042 $ 216,042 $ 216,042 $ 216,042 «0 0.) M M 00 (O O CO CO ct 0) CO N CO CO. N CO (M') (0 0) co 0, M O V CO (00 V CO 0 0 N N ' N .N- 0 co CO (M0 CO ((°9 cri $ 9,607 $ 28,863 U 0 2 a 0 (0 CO 0 O( M Q 0 M 0, r 0) (O j O1 00 co co- N 2 0 (no a (N LO M m °) CI ((0 (°n (°n N .- M (0O 0 (0V .- N N (°V °0) 0 v- 0 O () CO N 0 CO or 00) • N LC) n CO N � CO CO n M-- 00 N 0 CO 0• 0) M M C0) • N CO (0 N O LL 00( 3 C 0 0 0 OV V O 0 0 N m (H 0 0 CO 0 0 CO 0 0 O 0 0 0 0) CO 0 V 00 (O M V 0 0 O) O N c- C4 CO' NM V N m (0 0 c E c U > 0 0 0 d 2 ❑ y w 0 a m ,n w y d O m = E(0 O v w—On. C U y E. 0 (n .- d C 0 3oE2 da °ma:�Ea (a0) 01 -') ° nam aE C to 0` c '06 U C O) O (0 X '� 0 N N N 0 3 j N O� L W OO_Jb W =O(I 00 O 00 M 0 N N(00 On (0D U0) Ps N CO� (0 CD ID CD CD CD CD 0 0 Cr V N 00 10 O O N N i- CO n V V V V V (() 000000 TO: FROM: SUBJECT: DATE: City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Economic Development Authority Adam Kienberger, Community Development Director Dakota County TIF Policy September 22, 2014 INTRODUCTION/DISCUSSION Dakota County is discussing revising their tax increment financing (TIF) policy — the most current draft is attached. This has been a topic of concern for many of the cities in Dakota County over the past several years as the policy is not supportive of cities creating economic development TIF districts. Dakota County Commissioner Mike Slavik has accepted the EDA's invitation to attend our meeting on September 22nd While the current proposed changes to the TIF policy are mostly language clarification and document consistency related, it was noted that because economic development TIF is currently not supported by County policy, that all references to it are being proposed to be removed from the document. Past economic development TIF notices submitted by cities to Dakota County for review have resulted in "negative recommendations" by the County Board. The topic was recently discussed by the Community/Economic Development Directors group and the below summarizes the key points of that discussion: 1. Support for economic development TIF Districts. Concern was expressed that the policy does not support economic development districts that result in the creation of new livable wage jobs that would not occur but for the use of this tool. It was noted that economic development districts have the shortest duration of any district (8 years). All agreed that this tool should only be used as a last resort, but that it can be an important tool. 2. Timing of the policy review. The County Economic Development Strategy is scheduled to be reviewed /updated in late 2014 early 2015. It is premature to make significant changes to the policy before this work is done. Waiting will show a good faith effort to look at the priorities before identifying the tools to achieve them. For this reason, the Abatement Policy changes should be considered as part of the same timeline and process. It was also noted that by the County actively opposing economic development TIF, it puts cities in Dakota County at an initial disadvantage to our neighboring cities /counties. A common perception is that Scott County supports economic development and works with its cities to promote increases in tax base and job creation, whereas Dakota County has a policy specifically opposing the primary economic development tool cities have to use at their discretion. ACTION REQUESTED None, this discussion is meant to communicate the Farmington EDA's position on economic development TIF with Dakota County leadership. ATTACHMENTS: Type D Backup Material Description Dakota County TIF Policy Draft Policy 8002 TAX INCREMENT FINANCING Published 09/16/02 Revised: June 2014 POLICY STATEMENT Dakota County will-may support housing, redevelopment, renewal and renovation and soils condition TIF districts that increase or have a neutral effect on the number of affordable housing units in the community, clearly demonstrate that they meet the "but for" test, and meet at least one of the following: 1. Provide affordable housing 2. Include livable community housing and provide mixed us 3. Remove blight conditions and /or contamination DEFINITIONS Affordable Housing: so. - Rental housing that must meet all of the requirements for a low income housing credit under section 142(d) of the Internal Revenue Codes, regardless of whether the project actually receives housing credit , including maximum income and rent limits established annually by the U.S. Department of Housing and Urban Development (HUD). Owner occupied housing that must meet both of the following: (1) the definition of "housing project' under Minnesota Statutes 469.1761 Subd. 2: 95 percent of the housing units must be initially purchased and occupied by individuals and families whose household income is less than or equal to the income requirements for qualified mortgage bond projects under Section 143(d) of the Internal Revenue Code; and (2) the Dakota County policy requirement that 50 percent of the housing units must be initially purchased and occupied by individuals and families whose household income is less than or equal to 80 percent of the area median income (AMI) as determined annually by HUD. Maximum initial sale price limits will be enforced to ensure homes are affordable to homebuyers at these incomes. Blight conditions: Areas that contain (or conditions that cause) high percentages of dilapidated buildings or otherwise deteriorating and substandard structures. (Minn. Stat. 469.174, subd. 10). "But -For' Test: Shows that, in the opinion of the municipality: (i) the proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; and (ii) the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be Tess than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this item do not apply if the district is a housing district. (Minn Stat. § 469.175 Subd. 3 b (2)), Contaminateclion: The presence of hazardous substances, pollution, or contaminants that require removal or remedial action Livable Community: A community that is designed with 1) mobility options such as transit, walk, bike or drive, 2) protects and enhances natural resources, 3) Provides housing choices including single - family homes, condominiums and apartments in a variety of architectural styles and prices to meet the needs of people of all ages and incomes, and 4) a plan for mixed uses such as locating housing, workplaces, shopping, daily services, schools, parks, civic places and public facilities together in an area. Low Income Housing: Housing occupied by persons whose income is at or below 50% of the area median income with rents not exceeding 30% of the 50% area median income. Mixed Use: Developments that include housing, varied by type and prices, integrated with commercial development and places of employment. It includes those developments being accessibility by multiple transportation modes Moderate Income Housing: Housing occupied by persons whose income is at or below 80% of the area median income with housing costs not exceeding 30% of 80% of the area median income. Project area: The geographic area in which tax increment revenues may be spent. Project areas are designated by the development authority under the applicable development law. such as the HRA, port authority, economic development authority, or municipal development act. Qualifying Inspection: The inspections performed to document the status of the property to determine that the district meets the criteria as a redevelopment district, a renewal and renovation district, or other TIF district. Redevelopment: Actions taken to improve areas affected by substandard buildings, blight, railroad or tank facilities, as described by Minn. Stat. § 469.174, subd. 10. Tax Increment Financing: A statutory financing tool used to promote economic development, housing, redevelopment, renewal and renovation in areas where it otherwise would not have occurred. TIF enables an authority to "capture" property taxes generated by new development or redevelopment to pay for development expenses. A TIF authority captures the increase in net tax capacity resulting from new development within a designated geographic area called a TIF district. Tax Increment Financing Authority: An authority created pursuant to Minnesota Statutes to administer a tax increment financing district. (See Minn. Stat. § 469.174, subd. 2) Tax Increment Financing District: The geographic area from which tax increments are collected. The development authority defines the area in the tax increment financing plan. A district may be a- contiguous or noncontiguous area within -a project area. (See Minn. Stat. § 469.174, subd. 9) Tax Increment Financing Plan: A plan that must describe the project supported by tax increment financing, project objectives, development programs and activities to be undertaken, type and duration of district being created, parcels included in the district, estimated costs and revenues, impact on other taxing jurisdictions, and other details of the proposal. The TIF plan may be approved by the municipality after the required public hearing is held. (Minn. Stat. § 469.175, subds. 1, 4) SOURCE Tax Increment Financing is governed by Minn. Stat. § 469.174 - 469.17911793 as amended. Dakota County Board Resolution No. 92- 49414 -_ GENERAL INFORMATION Dakota County must receive sufficient information to be able to determine that the qualifying criteria has have been met. Depending on the type of TIF district, Dakota County requires documentation related to: • TIF plan • qualifying inspections • analysis of net affordable housing impact within the TIF district or project area • average market value of comparable housing in the city or area • estimated financial impact on the county mao(s) of the proposed TIF district and project area • traffic study, if appropriate As provided in state -law Minn. Stat. § 469.174.1a and the Dakota County Transportation Policy Plan, the Dakota County Board of Commissioners shall require the authority to pay all or a portion of the cost of related or required improvements to the county transportation system from increment revenues, if the following conditions occur: 1. The proposed plan would, in the judgment of the county, substantially increase the use of the county transportation system and require construction of road improvements or incur other transportation system costs; and 2. The transportation system improvements are not scheduled for construction within five years under the county capital improvements plan, and, in the opinion of the county, would not be expected to be needed within the reasonably foreseeable future were it not for the tax increment financing district. For projects that are included in the capital improvements plan, the costs of road improvements or other road costs (e.g., traffic controls) which are in the determination of the County the result of a tax increment financing plan or an amendment to a TIF plan, will be subtracted from the County eligible project costs, with the balance of costs divided according to the cost sharing policy of the County Transportation Policy Plan. A County Board resolution is required for any significant deviation from this policy. Dakota County encourages municipalities to furnish TIF plans, or documentation related to the above, at least 45 days prior to the public hearing for the following purposes: 1. To coordinate the timeline of the road improvement cost estimates and the comments from the Dakota County Board. Dakota County reserves the right to identify costs after the public hearing if necessary. 2. To allow for a thorough analysis by all essential county departments and ensuring an appropriate recommendation to the county board prior to the public hearing. a. To assure documentation is received timely Dakota County encourages municipalities to furnish TIF plans and documentation to the following county offices: i. County Commissioner representing the municipality ii. County Administration iii. Property Taxation & Records Department Director iv. Physical Development Division Director v. Executive Director of Dakota County Community Development Agency Dakota County will indicate its support/non- support for municipal TIF districts via comments in a County Board resolution provided to the city, except when a County Board meeting is not held within the 30 -day response period. If the County Board cannot provide comments by resolution within the 30 -day response period, comments will be provided following Board action. The Dakota County Board must approve or disapprove all CDA TIF Districts. Dakota County encourages municipalities to 1) limit the duration of the district and supports the early decertification of all TIF districts and 2) require that TIF assistance provided in housing districts be repaid at the time the property is sold or transferred if the home appreciates in value. Dakota County will consider a municipality's history regarding compliance with Dakota County's TIF policy and state law in its deliberation. PROCEDURES The Dakota County Property Taxation & Records Department will develop and maintain procedures. TO: FROM: SUBJECT: DATE: City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Economic Development Authority Adam Kienberger, Community Development Director CDBG Municipal Subrecipient Agreement September 22, 2014 INTRODUCTION/DISCUSSION Attached is a memo from the Dakota County Community Development Agency (CDA) regarding Community Development Block Grant (CDBG) funds for program year 2014 (July 1, 2014 — June 30, 2015). Included in the attachment is a Subrecipient Agreement Time of Performance Amendment between the Dakota County Community Development Agency and the City of Farmington. Execution of this agreement will allow Farmington to expend its 2014 CDBG funds on the approved activities included in its 2014 CDBG application. ACTION REQUESTED Staff is requesting that the EDA review and approve for signature the attached Subrecipient Agreement Time of Performance Amendment between the Dakota County Community Development Agency and the City of Farmington. ATTACHMENTS: Type o Backup Material Description Dakota County CDA Memo and Agreement nulawie Dakota County Community Development Agency CDA MEMORANDUM 1228 Town Centre Drive I Eagan, MN 55123 PHONE 651- 675 -4400 I Too /rn 711 www.dakotacda.org TO: Dakota County CDBG Municipal Sub - recipients FROM: Lisa Alfson, Asst. Director of Community & Economic Development DATE: August 27, 2014 RE: CDBG Municipal Sub - recipient Agreements — Program Year 2014 Please find enclosed copies of the revised Exhibits of the Municipal Sub - recipient Agreement for the Community Development Block Grant (CDBG) program, in addition to the Municipal Sub - recipient Agreement Amendment. Services of the Municipal Sub - recipient Agreement began July 1, 2010 and ended on the last day of June 2014 (or until it is replaced by a subsequent Municipal Sub - recipient Agreement). As an alternative to signing another multi -year sub - recipient agreement, an amendment to the current Municipal Sub - recipient Agreement is attached (Attachment A). We will develop a new sub - recipient agreement for next year, beginning July 1, 2015. Please review and sign at your earliest convenience. After the agreement has been returned to me and signed by the CDA Executive Director, your municipality may expend 2014 CDBG funds. The six exhibits (detailed below) are the revised items for Program Year 2014. The Municipal Sub - recipient Agreement covers activities directly administered by the municipality and may not include all CDBG funding that the municipality receives (Le., residential rehab loans administered by the CDA). You must also execute a similar agreement between your municipality and any organization(s) that will administer a CDBG- funded activity on your behalf. The municipal Sub - recipient Agreement remains in effect until it is replaced by a subsequent municipal Sub - recipient Agreement. Updated Program Year 2014 Exhibits include: • Exhibit A — Identifies the CDBG- funded activities directly administered by municipal sub - recipient. • Exhibit C — Authority to Use Grant Funds • Exhibit D — 2014 Dakota County Anti - Displacement Policy • Exhibit E — FY2014 Activity Statement • Exhibit M — HUD Funding Approval /Agreement The CDA does not require council action for the approval of the municipal sub - recipient agreement or revised exhibits. Don't hesitate to contact me at 651- 675 -4467 if you have further questions. Enclosures SUBRECIPIENT AGREEMENT DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY AND THE CITY OF FARMINGTON TIME OF PERFORMANCE AMENDMENT The Dakota County Community Development Agency (CDA) formally requests a Time of Performance Amendment to the current Subrecipient Agreement between the CDA and the City of Farmington. The purpose of the amendment is to extend the current Agreement through Program Year 2014, and have a new Subrecipient Agreement for Program Year 2015 that will align with the 2015 — 2019 Consolidated Plan. The CDA and municipal subrecipients are currently in the process of developing the 2015 — 2019 Consolidated Plan, which is the framework for identifying housing and community development priorities that align and focus funding from U.S. Department of Housing & Urban Development (HUD) programs, including the Community Development Block Grant (CDBG) Program, HOME Program, and the Emergency Solutions Grant (ESG) Program. The Time of Performance Amendment to the current Subrecipient Agreement shall extend the end date of the agreement from last day of June 2014 to the last day of June 2015. 1. TIME OF PERFORMANCE: The Subrecipient agrees to extend the Time of Performance for the original Subrecipient Agreement dated July 1, 2010, to the last day of June 2015. This Agreement remains in effect until it is replaced by a subsequent Subrecipient ,ikgreement. :©I ARMINGTON DAKOTA COUNTY CDA • =I' jixVcit,ient (for Farmington) The Grantee B3i : . By David McKnight Mark Ulfers Its City Administrator Its Executive Director Date Date (FFY2014) EXHIBIT A TO SUBRECIPIENT AGREEMENT DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (CDA) AND THE CITY OF FARMINGTON VI. SCOPE OF SERVICES. As required in 24 CFR 570.503 (Exhibit J), the Subrecipient will be responsible for the administration of Activities indentified in Exhibit A, which shall be amended each Fiscal Year according to those Activities approved for and undertaken by the Subrecipient, including ongoing Activities from previous fiscal years. CDBG funds will be committed to Activities after July 1, 2014 to the following Activities; this Exhibit A will be amended as needed on an annual basis through the term of this Agreement. The date of the balance of remaining funds for each activity is June 30, 2014. Activity 1- Commercial Rehabilitation A. Description Improvement of commercial properties in Farmington. B. Budget Activity Budget of $61,717.00 Remaining FY 2014 Funding: $42,717.00 Remaining FY 2013 Funding: $19,000.00 Activity 2- Public Service - Seniors A. Description Provide extended hours to senior center with additional programs and services during extended hours. B. Budget Activity Budget of $8,839.00 Remaining FY 2011 Funding: $8,839.00 Authority to Use Grant Funds U.S. Department of Housing and Urban Development Office of Community Planning and Development EXHIBIT C To (name & address of Grant Recipient & name & title of Chief Executive Officer) Ms. Andrea Brennan Dakota County CDA 1228 Town Centre Drive Eagan, MN 55123 Copy T.o: (name & address of SubRecipient) We. received your Request for Release of Funds and Certification, for n IUD= 7015.15 on 07/11/2014 Your Request was for HUD /State Identification Number 13- 14 -UC -27 -0003 All objections, if received, have been considered. And the minimum waiting period has transpired. You are hereby authorized to use funds provided to you under the above HUD /State Identification Number. File this form for proper record keeping, audit; and inspection purposes. 2014 CDBG Activities Release date 07/27/2014 Typed Name of Authorizing Officer Michele K Smith Title of Authorizing Officer CPD Director Signature of Authorizing Officer rfrIce/A--ee /Cf1/14(L) Date (mm/dd /yyyy) 07/27/2014 Previous editions are obsolete. form HUD- 7015.16 (2/94) ref. Handbook 6513.01 EXHIBIT D 2014 DAKOTA COUNTY ANTI - DISPLACEMENT POLICY PART L MINIMIZING DISPLACEMENT It is the goal of Dakota County to minimize displacement of persons from their homes and neighborhoods when utilizing Community Development Block Grant (CDBG) or HOME Investments Partnership Program (HOME) funds. Displacement has been defined as the involuntary movement of a household from a dwelling as a result of its acquisition, rehabilitation or demolition when funded in whole or in part with CDBG or HOME funds, or if funded with non - CDBG /HOME when the activity is a prerequisite for some other CDBG /HOME funded activity. Displacement also includes involuntary movement of a business from a commercial property. In an effort to minimize displacement of households, the following steps will be taken: 1. With the exception of lead based paint hazard reduction, owner occupied properties will not be rehabilitated if displacement is expected to occur. To safely reduce the hazards of lead based paint, the occupants must vacate the impacted areas until a clearance test determines the area is safe. When the impacted areas include the sole means of entry or all entries to the dwelling, the kitchen or food preparation areas, or the sole bathroom or all bathrooms, or the entire dwelling area, the occupants must completely vacate the unit until a successful clearance test is received after the completion of the lead based hazard reduction work. Relocation is voluntary. The homeowner will sign a waiver form acknowledging that they are relocating voluntarily, and that the CDA is not responsible for any costs associated with the relocation, other than a stipend payment of $500.00 that is payable to the homeowner when it is necessary to vacate the residence for a continuous time of 24 hours (or one full day and one full night) during the course of the lead based paint hazard reduction work. 2. Businesses will not receive loans for rehabilitation or expansion if any residential displacement would occur as a result of the rehabilitation or expansion unless such activities are essential for economic development of a community. 3. If acquisition or demolition activities require displacement of a household, the acquiring entity will follow the procedures established in Part II (Displacement Action Policies). 4. Code enforcement activities and neighborhood groups will not receive CDBG or HOME funds, therefore eliminating the possibility of displacement through code enforcement or through the activities of a neighborhood group. PART II. DISPLACEMENT ACTION POLICIES A. Eligible households as defined by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (the Uniform Act) that are displaced as a result of CDBG or HOME funded activities will be eligible for moving and /or rental payments at levels as described in the Uniform Act. 1. Persons displaced as a result of CDBG /HOME funded activities will be eligible for moving and /or rental payments at levels described in the Uniform Act. 2. Referrals will be made to agencies that furnish financial counseling, health and social services, or other services that may be helpful to displaced persons. 3. Low and moderate income persons will be given a displacement priority for admission to Low Income Public Housing and Section 8 Housing Assistance Program in Dakota County. 4. All affected persons will be informed of their rights under the policies and procedures set forth under the regulations in the Uniform Act, including their rights under Title VI of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968. 5. The projects will be planned and implemented in a manner so as to minimize hardship to the site occupants and involve the least possible degree of displacement in accordance with the needs of the program and the persons displaced. 6. Efforts will be made to provide those persons to be displaced as a result of the activities of the project an opportunity to obtain comparable replacement housing that is: • within their financial means and meets their needs; • reasonably accessible to their places of employment, potential employment, transportation and other commercial and public facilities; and • available on a non - discriminatory basis 7. Displaced businesses will be eligible for benefits as required by the Uniform Act. B. Persons displaced through any rental rehabilitation activities will be assisted in accordance with the Uniform Act or through a process including the following actions: 1. Permanent displacement of a low income person or family will not occur as a result of CDBG or HOME funded activities unless: a. A rental assistance voucher or certificate is available to the person or family that allows them to move to a comparable affordable unit; or b. An acceptable comparable affordable unit is located for the person or family without the provision for rental assistance, and the person or family willingly moves to such a unit; and c. The acquiring entity follows the regulations of the Uniform Act. 2. If it is necessary to temporarily displace tenants in order to accomplish the rehabilitation, it is the responsibility of the owner of the rental unit to reimburse the tenants for their expenses or inconvenience associated with such temporary displacement, according to applicable state and federal laws. 2 Relocation, Displacement, and Replacement Housing Plan for the 2014 Dakota County CDBG Program In accordance with the requirements of 24 CFR 507.606 (c)(1)(iii), the following Plan has been prepared and shall be applicable to the activities listed herein funded through the Dakota County Community Development Block Grant Program (CDBG). This plan is public and is part of the Subrecipient Agreements between the Cities undertaking the activities and the Dakota County CDA governing administration of the CDBG Program. The following activities involve vacant structures and /or voluntary transactions. If involuntary displacement occurs, the acquiring entity will follow provisions of the Uniform Act. 1. Proposed CDBG Activities Which Involve Acquisition, Demolition, or Conversion A. South St. Paul — Acquisition and demolition of substandard, blighted, and dilapidated residential properties in the City of South St. Paul. B. Inver Grove Heights — Acquisition and demolition of substandard and blighted property located in the 100 -year floodplain. C. Lakeville — Acquisition and clearance of blighted residential property. 2. Location and Type of Housing Units Affected; Actions to be Taken A. South St. Paul - Housing units acquired and demolished will be located throughout the City of South St. Paul. Units affected will be those units that are vacant, uninhabitable, under code enforcement orders, repossessed by the VA or FHA, or otherwise substandard or causing a blighting influence on the surrounding neighborhood. Some acquisitions may be owner initiated. Acquired units will undergo an inspection to determine the feasibility of rehabilitation. When rehabilitation is physically and economically infeasible, acquired units will be demolished. Public notices will announce the units identified for acquisition and demolition or rehabilitation. The South St. Paul HRA anticipates that acquired properties will be vacant or the residents will voluntarily relocate, if involuntary displacement does occur, the South St. Paul HRA will follow the provisions of the Uniform Act. B. Inver Grove Heights - Property acquired will be located along Doffing Ave, between 66th St. and 63rd St., including property fronting on 65th St., 64th St., and 63rd St. Both residential and commercial property may be acquired. Residential property in this area is generally of lower value than in other nearby neighborhoods due to the blighting influence of the floodplain and the mix of usages in the area, and thus is more affordable to lower income persons. As properties are identified for acquisition and clearance, the locations will be published. It is anticipated that properties being acquired will be vacant or voluntarily acquired with no threat of condemnation or eminent domain by the City. If involuntary displacement does occur, the provisions of the Uniform Act will be followed. C. Lakeville — The City of Lakeville plans to acquire and demolish blighted residential property throughout the community. It is anticipated that acquired and demolished properties will be vacant or residents will voluntarily relocate. The end use of the property will be for open space. 3 3. Schedule for Project Implementation The activities under this project will generally occur between July 1, 2014 and June 30, 2015. 4. Replacement Units Where units must be replaced in accordance with the regulations cited above, the Cities will cooperate and coordinate with the Dakota County CDA and the Twin Cities Chapter of Habitat for Humanity, or with other groups /entities as appropriate, to provide replacement units that are created either on the sites cleared or at other locations within the participation area for the Dakota County CDBG Program. Please see attached list for replacement units already constructed or in planning stages. 5. Ten Year Affordability Assurance The Family Housing units constructed, owned, and /or managed by Dakota County CDA are intended to be low and moderate income housing for the entire life of the units. Properties developed by private developers using tax credits must adhere to a fifteen (15) year period of affordability. If HOME funds assist with construction, units must remain affordable for twenty (20) years. Any unit used for the purpose of replacement housing will remain affordable for at least ten (10) years from the date of initial occupancy by the relocated household. 4 DAKOTA COUNTY CDA REPLACEMENT UNITS AVAILABLE FOR THE 2014 ANTIDISPLACEMENT PLAN Note: More details and updates can be found at www.dakotacda.orq. All developments have accessible units. Parkside — 122nd Street, Burnsville Twenty -two units of low /moderate income rental housing for families opened for occupancy June 1992. This development includes 1 two bedroom accessible unit; 3 two - bedroom units; and 18 three bedroom units. Dakota County CDA is the property manager. Spruce Point — East of hwv 52, off of Chandler Lane, Inver Grove Heights Twenty -four units of low /moderate income rental housing for families opened for occupancy August 1995. This development includes 1 two - bedroom accessible unit; 4 two bedroom units; and 19 three bedroom units. Dakota County CDA is the property manager. Oak Ridge — South of Difflev & east of Johnny Cake Road, Eagan Forty -two units of low /moderate income rental housing for families opened for occupancy August 1996. This development includes 2 two bedroom accessible units; 18 two bedroom units; and 22 three - bedroom units. Dakota County CDA is the property manager. Pleasant Ridge — North Frontage Road, Hastings Thirty -one units of low /moderate income rental housing for families opened for occupancy August 1997. This development includes 2 two bedroom accessible units; 14 two - bedroom units; and 15 three bedroom units. Dakota County CDA is the property manager. Glenbrook -- Germaine Ave., Apple Valley Thirty -nine units of low /moderate income rental housing for families opened for occupancy in 1998. This complex contains 17 two bedroom units and 22 three bedroom units. Dakota County CDA is the property manager. Cedar Valley — Dodd and Cedar, Lakeville Thirty units of low /moderate income rental housing for families opened for occupancy in 1998. This complex contains 14 two bedroom units, 15 three bedroom units and 1 one bedroom accessible unit. Dakota County CDA is the property manager. Chasewood -- 155th Street, Apple Valley Twenty -seven units of low /moderate income rental housing for families opened for occupancy in 1999. This complex contains 14 two bedroom units and 13 three bedroom units, Dakota County CDA is the property manager. Country Lane — 210th Street West & Hamburg Ave., Lakeville Twenty -nine units of low /moderate income rental housing for families opened for occupancy in 2001. This complex contains 15 two bedroom units and 14 three bedroom units. Dakota County CDA is the property manager. 5 Hillside Gables — Lexington Ave. & 135E, Mendota Heights Twenty -three units of low /moderate income rental housing for families opened for occupancy September, 2001. This complex contains 17 two bedroom units and 6 three bedroom units. Dakota County CDA is the property manager. Marketplace — South Frontage Rd., Hastings Twenty -eight units of low /moderate income rental housing for families opened for occupancy September, 2002. This development includes 14 three bedroom units, 13 two bedroom units, and 1 one bedroom accessible unit. Dakota County CDA is the property manager. Heart of the City — East Traveler's Trail, 125th Street, & 1St Ave, Burnsville Thirty -four units of low /moderate income rental housing for families opened for occupancy in 2003. This development includes 1 one bedroom unit, 21 two bedroom units, and 12 three bedroom units. Dakota County CDA is the property manager. Erin Place — Cedar Path, Eagan Thirty -four units of low /moderate income rental housing for families opened for occupancy in 2004. This development includes 24 two bedroom units and 10 three bedroom units. Dakota County CDA is the property manager. Cedar Villas — Villa Parkway, Eagan This development, owned by Shelter Corporation, was developed in conjunction with Erin Place with104 units, including 60 two bedroom units and 44 three bedroom units. This development is a mix of both affordable and market rate units. Prairie Crossing — Icefall Trail & Icefall Way, Lakeville Forty units of low /moderate income rental housing for families opened for occupancy in 2005. This development includes 20 two bedroom units and 20 three bedroom units. Dakota County CDA is the property manager. Lafayette — 50th Street East, Inver Grove Heights Thirty units of low /moderate income rental housing for families opened for occupancy in 2006. This development includes 1 one bedroom, 15 two bedrooms and 14 three bedrooms. Dakota County CDA is the property manager. West Village — South Frontage Rd, Hastings Twenty -one units of low /moderate income rental housing for families opened for occupancy in 2007. This development includes 11 two bedroom units and 10 three bedroom units. Dakota County CDA is the property manager. Carbury Hills — Connemara Trail, Rosemount Thirty -two units of low /moderate income rental housing for families opened for occupancy in 2008. This development includes 24 two bedroom units and 8 three bedroom units. Dakota County CDA is the property manager. Twin Ponds — 223rd Street, Farmington Twenty -five units of low /moderate income rental housing for families opened for occupancy in 2009. This development includes 18 two bedroom units and 7 three bedroom units. Dakota 6 County CDA is the property manager. An additional 26 units (Phase II of development) will be added to the development and ready for occupancy in summer 2012. Meadowlark — 210th Street and Holiday Ave., Lakeville Forty units of low /moderate income rental housing for families opened for occupancy in 2010. This development includes 10 three bedroom units, 24 two bedroom units and 6 one bedroom units. Dakota County CDA is the property manager. Quarry View — Embry Path, Apple Valley Forty -five units of low /moderate income rental housing for families opened for occupancy mid - 2011. This development includes 13 three bedroom units, 31 two bedroom units and 1 one bedroom accessible unit. Dakota County CDA is the property manager. Northwood — Northwood, Eagan Forty -seven units of low /moderate income rental housing for families opened for occupancy summer 2013. This development includes 10 three bedroom units, 22 two bedroom units and 2 one bedroom accessible units. Dakota County CDA is the property manager. Inver Hills — College Trail and Bower Path, Inver Grove Heights Twenty -four units of low /moderate income rental housing for families opened for occupancy January 2014. This development includes 10 three bedroom units, 13 two bedroom units and 1 two bedroom accessible unit. Dakota County CDA is the property manager. Riverview Ridge — Sibley Memorial Highway, Eagan Twenty -seven units of low /moderate income rental housing for families anticipated to open for occupancy summer 2014. This development includes 10 three bedroom units, 15 two bedroom units and 2 two bedroom accessible units. Dakota County CDA is the property manager. 7 EXHIBIT E Final Dakota County FY 2014 CDBG /HOME /ESG Activity Statement Final CDBG Budget with 1% ($18,439) decrease from 2013 Final HOME Budget with 6% ($30,816) increase from 2013 Final ESG Budget with 23% ($25,583) increase from 2013 Dakota County 2014 CDBG Small Cities and Townships: City /Township Project 2014 Budget Greenvale Township Township Buildable Site Inventory Plan $ 5,000 Hampton Capital Improvement Plan $ 10,000 Hampton Infrastructure Management Database $ 5,000 Miesville Park improvement . $ 6,859 Randolph Weather Siren Replacement $ 18,000 Total $ 44,859 Lare Cities: g City . Project' 2014 Budget Apple Valley Public Services (Seniors) $ 12,000 Housing Rehabilitation $ 113,630 Total $ 125,630 City Project 2014 Budget Burnsville Public Services (The GARAGE) $ 45,000 • Public Services (360 Communities) $ 9,000 Public Services (Seniors) $ 43,014 Housing Rehabilitation $ 101,000 Public Facility Rehabilitation - The GARAGE $ 27,000 Administration (City, for Public Services) $ 11,000 Total $ 236,014. City. Project 2014 Budget Eagan Public Services (Youth Program Dakota Woodland) $ 4,000 Public Services (Youth Program Dakota Hills Middle School) $ 14,000 Public Services (Seniors) $ 17,000 Weatherization Plus $ 5,000 Housing Rehabilitation $ 153,927 Total $ 193,927 City Project 2014 Budget Farmington Commerical Rehabilitation $ 42,717 Total $ 42,717 City - Project 2014 Budget Hastings Assessment Abatement $ 68,927 Total $ 68,927 City Project 2014 Budget Inver Grove Heights Property Acquisition & Clearance (Doffing Floodplain) $ 56,704 Housing Rehabilitation $ 56,704 Total j $ 113,408 City Project 2014 Budget Burnsville Public Services (The GARAGE) $ 45,000 • Public Services (360 Communities) $ 9,000 Public Services (Seniors) $ 43,014 Housing Rehabilitation $ 101,000 Public Facility Rehabilitation - The GARAGE $ 27,000 Administration (City, for Public Services) $ 11,000 Total $ 236,014. City. Project 2014 Budget Eagan Public Services (Youth Program Dakota Woodland) $ 4,000 Public Services (Youth Program Dakota Hills Middle School) $ 14,000 Public Services (Seniors) $ 17,000 Weatherization Plus $ 5,000 Housing Rehabilitation $ 153,927 Total $ 193,927 City Project 2014 Budget Farmington Commerical Rehabilitation $ 42,717 Total $ 42,717 City - Project 2014 Budget Hastings Assessment Abatement $ 68,927 Total $ 68,927 City Project 2014 Budget Inver Grove Heights Property Acquisition & Clearance (Doffing Floodplain) $ 56,704 Housing Rehabilitation $ 56,704 Total j $ 113,408 City. Project 2014 Budget Eagan Public Services (Youth Program Dakota Woodland) $ 4,000 Public Services (Youth Program Dakota Hills Middle School) $ 14,000 Public Services (Seniors) $ 17,000 Weatherization Plus $ 5,000 Housing Rehabilitation $ 153,927 Total $ 193,927 City Project 2014 Budget Farmington Commerical Rehabilitation $ 42,717 Total $ 42,717 City - Project 2014 Budget Hastings Assessment Abatement $ 68,927 Total $ 68,927 City Project 2014 Budget Inver Grove Heights Property Acquisition & Clearance (Doffing Floodplain) $ 56,704 Housing Rehabilitation $ 56,704 Total j $ 113,408 City Project 2014 Budget Farmington Commerical Rehabilitation $ 42,717 Total $ 42,717 City - Project 2014 Budget Hastings Assessment Abatement $ 68,927 Total $ 68,927 City Project 2014 Budget Inver Grove Heights Property Acquisition & Clearance (Doffing Floodplain) $ 56,704 Housing Rehabilitation $ 56,704 Total j $ 113,408 City - Project 2014 Budget Hastings Assessment Abatement $ 68,927 Total $ 68,927 City Project 2014 Budget Inver Grove Heights Property Acquisition & Clearance (Doffing Floodplain) $ 56,704 Housing Rehabilitation $ 56,704 Total j $ 113,408 City Project 2014 Budget Inver Grove Heights Property Acquisition & Clearance (Doffing Floodplain) $ 56,704 Housing Rehabilitation $ 56,704 Total j $ 113,408 City Project 2014 Budget Lakeville Spot Acquisition & Clearance $ 62,184 Housing Rehabilitation $ 52,186 Public Services (Seniors) $ 10,000 Consolidated Plan Total $ 124,370 City Project 2014 Budget Mendota Heights Housing Rehabilitation $ 26,336 $ 49,809 Total $ 26,336 City Project 2014 Budget $ 20,000 Northfield Down Payment Assistance Housing Rehabilitation $ 49,809 Total Total $ 69,809 City Project 2014 Budget Rosemount Public Facilities - Street/sidewalk Improvements $ 51,554 Housing Rehabilitation Total $ 51,554 City Project 2014 Budget South St. Paul Property Acquisition (Rediscover SSP) $ 37,000 Housing Rehabilitation $ 26,267 Public Housing Improvement (Nan McKay) $ 17,000 Consolidated Plan Total $ 80,267 City Project ' 2014 Budget West St. Paul Housing Rehabilitation $ 81,906 Housing Rehabilitation Total $ 81,906 County Wide Dakota County 2014 HOME Project 2014 Budget Dakota County Housing Rehab, Est. Revolving Loan Income $ 300,000 Housing Rehabilitation $ 195,000 Well Sealing $ 20,000 Consolidated Plan $ 5,000 Fair Housing $ 3,250 CDA General Administration $ 197,139 FY14 CDBG, Total Final Grant $ 1,680,113 FY14 CDBG, Cities /Twps $ 1,259,724 FY14 CDBG, County -wide $ 420,389 Dakota County 2014 HOME Dakota County 2014 ESG Project 2014 Budget $ 429,447 Dakota County (33.4% Share) Affordable Housing Development - Morgan Square Lakeville Community Housing Development Organization (Undesignated) $ 85,889 CDA General Administration $ 57,260 $ 10,349 FY14 HOME, Final Grant . $ 572,596 Dakota County 2014 ESG Project 2014 Budget Dakota County Rapid Re- Housing Assistant Payments $ 100,639 Housing Relocation and Service Assistance $ 27,000 General Administration $ 10,349 FY14 ESG, Final Grant 1$ 137,988 EXHIBIT M Funding Approval /Agreement Title I of the Housing and Community Development Act (Public Law 930383) HI- 00515R of 20515R • 1.Name of Grantee (as shown In item 5 of Standard Form 424) U.S. Department of Housing and Urban Development Office of Community Planning and Development Community Development Block Grant Program OMB Approval No. 2506 -0193 (exp 1/31/2015) Dakota County 2. Grantee's Complete Address (as shown in item 5 of Standard Form 424) Community Development Authority Administration Center 1590 West Highway 55 Hastings, Minnesota 55033 -2343 3a. Grantee's 9 -digit Tax ID Number: 41- 1253302 3b. Grantee's DUNS Number: 963108121 4. Date use of funds may begin (mm/ddlyyyy): 07/01/2014 5a. Project/Gran No. 1 B- 14 -UC -27 -0003 5b. Project/Grant No. 2 6a. Amount Approved $1,680,113 6b. Amount Approved 5c. Project/Grant No. 3 6c. Amount Approved Grant Agreement: This Grant Agreement between the Department of Housing and Urban Development (HUD) and the above named Grantee is made pursuant to of Title I of the Housing and Community Development Act of 1974, as amended, (42 USC 5301 et seq.). The Grantee's submissions for Title I assistance ...:ie HUD regulations at 24 CFR Part 570 (as now in effect and as may be amended from time to time), and this Funding Approval, including any special conditions/addendums, constitute part of the Agreement. Subject to the provisions of this Grant Agreement, HUD will make the funding assistance specified here available to the Grantee upon execution of the Agreement by the parties. The funding assistance specified in the Funding Approval may be used to pay costs incurred after the date specified in item 4 above provided the activities to which such costs are related are carried out in compliance with all applicable requirements. Pre - agreement costs may not be paid with funding assistance specified here unless they are authorized in HUD regulations or approved by waiver and listed in the special conditions to the Funding Approval. The Grantee agrees to assume all of the responsibilities for environmental review, decision making, and actions, as specified and required in regulations issued by the Secretary pursuant to Section 104(g) of Title I and published in 24 CFR Part 58. The Grantee further acknowledges its responsibility for adherence to the Agreement by sub - recipient entities to which it makes funding assistance hereunder available, - U.S. Department of Housing and Urban Development (By Name) Michele K. Smith Grantee Name Dakota County Title Director, CPD Division Title fl � ii � ZC` GLtiO' O� � l v io Si t ire D mid ( �,� 1 S re • emnyd l�yyy) 7. Category of Title I Assistance for this Funding Action 8. Special Conditions / .. Date HUD Re eiv d Su mission °. 10. check one (check only one) (check one) r (mmldd)yyyy) r t Pi . a. Orig. Funding 111 a. Entitlement, Sec 106(b) ❑ None 9b. Date Grante9 Rifled. try h 014 Approval ❑ b. State- Administered, Sec 106(d)(1) 1// Attached (mm/dd/ iJ L 6t & ❑ b. Amendment ❑ c. HUD- Administered Small Cities, Sec 106(d)(2)(B) 9c. Date of Start of Program Year Amendment Number ❑ d. Indian CDBG Programs, Sec 106(a)(1) (mm(dd/yyyy) 07/01/2014 ❑ e. Surplus Urban Renewal Funds, Sec 112(b) 11. Amount of Community Development ❑ f. Special Purpose Grants, Sec 107 Block Grant (2014) ( FY ) FY ( ) FY ( ) ❑ g. Loan Guarantee, Sec 108 a. Funds Reserved for this Grantee $1,680,113 b. Funds now being Approved c. Reservation to be Cancelled (11a minus 11b) 12a. Amount of Loan Guarantee Commitment now being Approved 12b. Name and complete Address of Public Agency Loan Guarantee Acceptance Provisions for Designated Agencies: The public agency hereby accepts the Grant Agreement executed by the • Department of Housing and Urban Development on the above date with respect to the above grant number(s) as Grantee designated to receive 12e. Name of Authorized Official for Designated Public Agency loan guarantee assistance, and agrees to comply with the terms and conditions of the Agreement, applicable regulations, and other Title requirements of HUD now or hereafter in effect, pertaining to the assistance provided it. Signature HUD Accounting use Only Batch TAG Program Y A Reg Area 1 5 3 1 7 6 Y Y Document No. Project Number Category 1 r Project Number Protect Number Amount Amount Amount Effective Date (mm/dd /yyyy) F Date Entered PAS (mmldd /yyyy) Date Entered LOCOS (mm /ddlyyyy) Batch Number Transaction Code Entered By Verified By ' 1 a t%) ..* ch , 24 CFR 570 form HUD 7082 (11 /10) 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: Adam Kienberger, Community Development Director SUBJECT: Marketing Plan Update DATE: September 22, 2014 INTRODUCTION/DISCUSSION As we discussed at the August EDA meeting, below is an update on the status of several components of the Marketing Plan. Also included is a schedule of activities identified to be completed over the next six months. There were four primary goals included in that Plan: 1. Deepen relationships with Farmington business owners through an aggressive Business Retention and Expansion (BR &E) program. 2. Get closer to land owner /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). Below is an update on a few key initiatives underway: • BR &E Subcommittee — The BR &E Subcommittee consisting of Mayor Larson, Jeri Jolley, and myself met to discuss the EDA's BR &E strategy. Several businesses were identified for priority visits and are currently being scheduled. The Subcommittee will continue to meet as needed to assess BR &E activities and key takeaways. • Grant opportunities — Staff is exploring the CDA's Redevelopment Incentive Grant (RIG) program criteria and will be recommending an application for a B -2 Downtown Business District Planning Study later this year. This effort will likely involve the EDA, Planning Commission, and Heritage Preservation Commission. The following is an outline of activities to be completed over the next six months: September • BR &E Subcommittee meeting — 9/11/14 o Identified top 10 visits to schedule • EDAM Economic Development Summit — Workforce Development — 9/18/14 October • Establish key messages — Nemer Fieger o Met with Tom Whelan — 9/10/14 o Begin to develop collateral utilizing key messages • MNCAR Expo — 10/29/14 • Minnesota Real Estate Journal (MREJ) Event o Downtown Development Summit — 10/3/14 November • MREJ Event o Annual Industrial Real Estate & Economic Development Conference December • Minnesota Marketing Partners Quarterly Meeting /Annual Report • Outline RFP for a B -2 Downtown Business District Planning Study January • City Council EDA Annual Report • EDAM Winter Conference • Farmington Expo February • Ehlers Finance /TIF Seminar March • Minnesota Marketing Partners Quarterly Meeting Ongoing • Ribbon Cuttings /new business welcome • Farmington Coffee Breaks — DCR Chamber • FBA involvement • DEED Minnesota Marketing Partners opportunities • MNCAR broker activities and property data • EDAM professional events and seminars • Bi- monthly meetings with local commercial brokers /property owners • 2015 Website overall (City -wide) • Daily collaboration with planning /inspections staff Additional opportunities as they arise ACTION REQUESTED None, the above is meant to serve as a monthly update of the Marketing Plan. TO: FROM: SUBJECT: DATE: City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Economic Development Authority Adam Kienberger, Community Development Director September Director's Report September 22, 2014 INTRODUCTION/DISCUSSION Development Update Here are a couple of updates I provided to the City Council at their meeting on September 15: • Farmington Gymnastics held a ribbon cutting on September 8th and opened this past weekend • Dakota Lumber recently completed their expansion and are having a ribbon cutting on Saturday, September 27th at 1:00 p.m. • The Valmont expansion is progressing quite quickly and is currently about three - quarters complete • Farmington Mini Storage currently has two new buildings under construction Building Permit Reports Please find attached the monthly building permit report provided by the Planning Manager. Permit activity is continuing at a steady pace. Miscellaneous Articles Attached are a couple of articles you might find of interest relating to the manufacturing sector and new business startup financing. ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Backup Material EDA Attachments M N N co M lO CO CO CO M mqt CV mMM'' U) 10 COMNc')CO F- a 0 0 2 r- e4 N1-O)LO C MN r r r r O N tO Oo CO r M 0) CO 'd' CO O N- 'U) r r r r r T M 0 N Vic- a0 up d' I- CO 00 h- t CO C4 LO N O C4 <I'tO NJ' I--- CO Nm'd'r N 0 N .4'MMNF1t t0)NF-Ma7 T T' r O O N MNcO LC) C4 - (r) CO T r r 0) O O N N N CO 105 16 1(5 L" 0 L co w 0. w 7 7 W U O N o Cumulative Permit Count U) .0 G N C) d 0) 0 z 0) O V 0 N .0 0) .) 0) 0) .0 COLndtCONl� r. () 'Cr CO N N— r r (p CD N` (7 N"- N- CO CO CO CO r ti r r 7L 0. L c 0) Ll.. ((S N CO CO N"-- O N. CO 0000 1.0 r N"- r CO CO N r C ) N- 1-0 t•-- Cr) 14-) 1"-. r r N cY N(Oci'LO N- .,— • Id) O 0) O N CO 000(hl�(O 0) x— N N r CO 03COLOL0. ~▪ t�()NN'C CO CO Ln N 'd' O) r (OrrrN (ONN"- O)M6) C* CO cp CO r LO f� 0) 0 •- N CO O r r r r r 0 Co 0 0 0 0 N N N N N N Adam Kienberger From: DEED Communications <MNDEED @public.govdelivery.com> Sent: Thursday, August 21, 2014 2 :48 PM To: Adam Kienberger Subject: Making a Living Making Things Categories: Orange Category SEE WHY lINNES tTA 15 A GIll<AT PLACE TO LIVE, ORK AND DO BUSINESS Making a Living Making Things Anyone walking into a manufacturing plant today would see a stark contrast from what was common in the last century. Much progress has been made toward correcting safety and health concerns of yesteryear and promoting a vibrant workplace. One thing hasn't changed, though. The industry remains an important source of jobs, both nationally and in Minnesota. Central and southwestern Minnesota are home to a variety of manufacturers, from food processing manufactures like Seneca Foods and Jennie -O, to specialized vehicle manufacturers like Polar Tank Corp. and agricultural equipment makers like AGCO. These and other manufacturers have a major impact on local economies in central and southwestern Minnesota, providing a living for more than 70,000 people in the region. The largest sector within manufacturing for both regions is food manufacturing. With 17,369 jobs, food manufacturing represents 25 percent of the manufacturing sector in the combined areas. Food manufacturing is even more concentrated in southwestern Minnesota, with just over 10,000 jobs (32 percent of all manufacturing jobs in the region). Food production is also the largest manufacturing subsector in central Minnesota, averaging 7,467 workers for the first three quarters of 2013. Manufacturing offers a wide variety of occupations beyond production. Many of these jobs provide wages that are considerably above the median for all occupations. The average wage in manufacturing is about 25 percent more than the average for all occupations, or $172 per week in central and $161 per week in southwestern Minnesota. Some of the most common occupations in manufacturing include production, transportation and material moving, office and administrative support, installation and repair, as well as management, sales and 1 business, and financial operations. Click here to read more about Minnesota's manufacturing industry in the latest issue of Minnesota Economic Trends Magazine. frote51* Department of Employment and Economic Development STAY CONNECTED: SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help Questions? Contact Us DEED is an equal opportunity employer and service provider. This email was sent to akienberger @ci.farmington.mn.us using GovDelivery, on behalf of: Minnesota Department of Employment and Economic Development 332 Minnesota Street Suite E -200 • Saint Paul, MN 55101 • (800) 657 -3858 2 parvaaly 9OVOELIVERY, go IN- 1;area'Mg% Starved of Financing, New Businesses Are in Decline - http : / /businessjournal.gallup.com/ content /175499 /starved - financing... Sign In Register Gallup Business Journal: businessjournal.gallup.com Starved of Financing, New Businesses Are in Decline ............ Share I U.S. business startups have declined in line with the personal savings rate -- which means American entrepreneurship remains at risk by Benjamin Ryan Business startups have been declining steadily in the U.S. over the past 30 years. In 1977, 16.5% of businesses in America were less than one year old, according to data from the U.S. Census Bureau. By 2011, that figure had dropped by half, to just 8.2 %. The percentage of businesses that closed each year remained relatively constant over the same time frame, at about 9 %. But in 2008, the startup rate crossed a critical threshold. The percentage of new businesses created that year was smaller than the percentage of businesses that closed down. In other words, the birth rate of new businesses dropped below the death rate for the first time since these metrics were first recorded -- and that downward track has continued. 1 of 6 9/11/2014 9:21 AM Starved of Financing, New Businesses Are in Decline http : //business j ournal. gallup. c om /content/ 175499 /starved - financing... BI1SInESS GLOSINGS HOLD STEADY WHILE BUSESS STARTUPS DECLINE T3usilacss startups haw been declining; steadily in the US. over the past 30 years. But the startup rate crossed .a critical threshold in 200S, when. the birth rate anew businesses dropped Move the death at for the first time since these metrics were first recorded. % eteisiad firms a ti new firms 1977 1980 19% 1989 19-92 19:15 1 ?3R 2001 2007 2014 Source: U.S. Census .]Aide d, Business Dynamics Statistics GALLUP, Gallup pointed out this decline earlier in the year, and the recent publication of a summary paper by two researchers at the Brookings Institution sparked another round of media attention. Despite all this research, there has been no definitive answer as to why the rate of U.S. startups has declined so precipitously. New Gallup research into the drivers of entrepreneurship at the individual and national levels offers an explanation of this sharp decline. Recent Gallup research suggests that a crucial factor influencing the declining rate of U.S. startups is a decline in the personal savings rate. Personal savings: A crucial funding source for business startups Securing adequate financing is a challenge for business owners and entrepreneurs -- and that financing comes predominantly from personal savings, Gallup research shows. These findings are similar to those shown in research by the Kaufmann Foundation on business owners and startups. • The Wells Fargo /Gallup Small Business Index has consistently found that small- business owners depend most on personal savings for startup funding. When Gallup first asked entrepreneurs about their sources of Pre -Order Now 2 of 6 9/11/2014 9:21 AM Starved of Financing, New Businesses Are in Decline http : //businessjournal.gallup.com /content /175499 /starved - financing... startup funding in 2006, 73% of small- business owners mentioned personal savings as a source, while 37% cited a loan or line of credit as the next most common source. When Gallup asked this question in 2014, 77% cited personal savings as a source of startup funding, followed again by a loan or line of credit (41 %) as the next most common source. • The Sam's Club /Gallup Microbusiness Tracker also shows that 60% of microbusiness owners -- those who own businesses with five or fewer employees, including themselves -- depended on personal savings to finance their business. This is particularly true of those who have started their business: 79% of those who started their microbusiness in the past year had drawn on their personal savings for financing compared with those who own more mature businesses (50 %). The U.S. personal savings rate -- personal savings as a percentage of disposable personal income or income after taxes that is not spent on personal consumption expenditures, interest payments, or transfer payments -- tracks the availability of the economic resources that prospective entrepreneurs depend on to finance new businesses. The availability of personal savings also directly affects business owners' ability to secure and sustain loans and lines of credit, the next most common source of financing. Owners with little or no personal savings are less likely to convince banks that they can take on extra loan payments or provide collateral, such as a house or other high -value assets. And the U.S. personal savings rate, like the business startup rate, has been steadily declining since the late 1970s. 3 of 6 9/11/2014 9:21 AM Starved of Financing, New Businesses Are in Decline http: / /businessj ournal. gallup. com/content/ 175499 /starve d- financing... PERSONAL SAVINGS, A KEY SOURCE OF FUNDING FOR BUSINESS STARTUPS, HAVE DECLINED Seeming adequate financing is t must for all new businesses -- and the top source of financing for st ;arttlps is personal sat in :N :11w U..S. ptrscin;1 savings rate has been steadily (leaning since the late 1970s, . and this decline directly affects business owners' ability to secure and sustain is .tns and lines of credit, 111C 110 10 Our e cyf fi11:►ileing. II 1)Z'I4UF'�:71 i4,A ingti rate. 74113% new li.reas 2% 973 1976 1979 19 2 1985 19 11 1991 1'1±14 1993 21 X) 2(X 2006 201 SA11r4c: L1.S, CL17s11a i3urcau,1311siness Dynamics Statistics; St. l „[lids Federal Reserve Econotnic Data (FRED) Personal savings rates, business startups decline Money saved this year is, by definition, not spent this year. Personal savings rates for the current year, then, should show the greatest effect in a future year, when the accumulated savings are spent. Gallup's analysis shows that the personal savings rate in any given year is most closely associated with the rate of business startups four years later. If the relationship observed between the personal savings rate and the business startup rate from 1977 to 2011 has continued in recent years, what can the available data tell us about the potential rate of business startups in current and future years? At this time, Census data on U.S. business startups is available through 2011 only. Assuming the personal savings rate and the business startup rate continue to track as they did from 1977 to 2011, Gallup would expect Census data to report a business startup rate between 9.3% and 10.7% for 2012, an increase from the business startup rate of 8.2% reported in 2011. 4 of 6 9/11/2014 9:21 AM Starved of Financing, New Businesses Are in Decline http:l/bus iness j ournal. gallup. com /content/ 175499 /starved- financing... PREDICTI\G BJSINESS STARTJPS Pei ona.l savings rltc:. show their effect in the future, when those savings are spent. Grallup's analysis slows that the personal swings at in ;t gh'cn year is most closely associated with the rate of business st;mulls tour years later. Assuming the ptirsonal savings rate and the business stamp rate continue to track as they did in previous pars, Gallup would expect Census data to report a business startup rate between 9.3% and 10.7%1 for 2012, an increase from the lnl-sinms startup rate of 8,2% reported in 2011. 1% 11CSY time: projected new fire 2012 -2014 1477 1980 1!),53 1986 14;14 19'1? 10<r1 2001 2004 2657 20117 2013 Source: 1.,I.S. Census Bureau, Business Dynamics Statistics; Sr , Louis Federal Reserve Economk Data (FRED) GALLUP M After a few years of stronger personal savings from 2009 to 2012, the personal savings rate fell in 2013 and 2014. This drop suggests that even if the personal savings rate and the rate of business startups pick up from 2013 to 2016, the U.S. may still see a decline in new business startups in the following years. The U.S. personal savings rate and the business startup rates remain well below the levels in the 1970s and earlier. Unless Americans start saving more -- and there is an uptick in the U.S. personal savings rate -- American entrepreneurship remains at risk. Benjamin Ryan is an Associate Consultant at Gallup. 5 of 6 9/11/2014 9:21 AM Starved of Financing, New Businesses Are in Decline http:f/ businessjournal .gallup.comlcontent/175499 /starved- financing... RELEASE DATE: 04 September 2014 SOURCE: http : //businessjournal.gallup.com CONTACT: Gallup Business Journal INFORMATION: Editorial and Executive Offices, 1251 Avenue of the Americas, Suite 2350, New York, NY 10020. +1.888.274.5447 Copyright © 2014 Gallup, Inc. All rights reserved. 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