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HomeMy WebLinkAbout07.28.14 EDA PacketAGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING JULY 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 6. Consent Agenda a) Meeting Minutes (6/23/14 Regular Meeting) Page 1 7. Discussion Items a) Marketing Plan b) CDBG Update Page 6 Page 38 8. Director's Report Page 51 9. Adjourn MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting ' June 23, 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; Adam Kienberger, Community Development Director; Cynthia Muller, Executive Assistant 2. PLEDGE OFALLEGLANC %` 3. ROLL CALL 4. APPROVE' AGENDA MOTION by Jolley, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Jolley, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (4/28/14 Regular and 5/12/14 Joint Work Session) b) Monthly Statements APIF, MOTION CARRIED. 7. DISCUSSION ITEMS a) Business Retention and Expansion Visits There has been some discussion over time as far as who should attend business visits, how many people, questions, etc. Community Development Director Kienberger presented some suggestions for streamlining the Business Retention and Expansion (BR &E) efforts, standard questions and how we can track that data for follow -up. Greater MSP is an organization whose prime focus is to bring business into the Twin Cities area. They have a person in charge of BR &E efforts to help cities focus their efforts. Greater MSP has noticed that every city handles business visits differently, there are groups overlapping in visiting businesses and the result is the business does not want to meet with other groups that come along. The questions are who is the business meeting with and where is the information going. Greater MSP is trying to coordinate efforts between groups and funneling P1 EDA Minutes (Regular) June 23, 2014 Page 2 the data to a single point. Everyone can use the same data to follow up. Groups conducting business visits are MNSCU, Greater MSP and city staff. The Dakota County Regional Chamber is a partner of the Grow MN program. This program has a specific set of questions for each visit so they obtain the same information from all businesses. There are a couple strategies when doing business visits. One is information gathering, however, the business does not get much out of that. Greater MSP has suggested if their short form is used, it will help everyone gather the same data and everyone can track the data and see what is out there. Community Development Director Kienberger suggested using these questions as a basis for the type of discussion when doing the business visit so we can gather the same types of data from each business. The second step is recording the data. Right now staff records the data, types up summaries and sends it out and hopefully someone follows up. The other tool to track data is through Sales Force. This is a popular relationship management software and their sole purpose is to build databases for tracking customer data. Greater MSP has set up a relationship with them to utilize their technology so members can upload their data. Member Wilson suggested when we go on a visit, we should gather off the record .specific information that would be beneficial to us as a community. We may have things that are unique to Farmington. Staff explained the questions are to be used as a baseline and we should at least gather these points. There is a notes section for other information. Member Jolley asked if Community Development Director Kienberger has the history of what we have done the last couple years and plans for going forward. Staff has reviewed all of 2014 and some of 2013, and has reviewed the spreadsheets. Member Jolley asked if he found any follow up that has not happened. What staff did notice that needs some attention is greater broadband access. City Administrator McKnight stated any service provider can come in. The city's contract with Charter does not prevent other providers from coming. The Dakota County CDA recently commissioned a broadband consultant to study Dakota County has a whole and identify the gaps in broadband availability and by filling those gaps, what can be done to further make the county a more attractive place for businesses and residents. There is a lot of broadband fiber throughout the county as well as private fiber that runs throughout all the rights -of -way in the county. The first thing this consultant will look at, with the assistance of county and city staff, is,getting everyone to talk to each other to determine what the cities have. Then gaps will be identified and what can be done to bridge those gaps and provide more offerings to businesses. Member Bonar appreciated the corporate culture inquiry, and our previous efforts may be home spun, but he hoped we could incorporate elements of both in the P2 EDA Minutes (Regular) June 23, 2014 Page 3 visits. In looking at the Greater MSP questions, it was difficult to find the correlation to Farmington. Community Development Director Kienberger noted the questions are meant to serve as a framework for the visits. He met with the marketing consultant who developed the marketing plan and a follow -up could be something as simple as sending out a thank you post card. The questions don't reinforce that relationship, but they do provide a baseline as to who is being visited, how many limes and how often. Chair Larson saw the questions as being very professional and it would not hurt us to be more professional than we have been. It will show that we are serious. But it can be fluid and we can stray from this. Staff suggested not having the questionnaire in hand, but to complete it after the visit. Member Bonar clarified he was not against the questionnaire, but wanted to exercise our humanity at the same time. Member Zeaman agreed with the basic framework of questionnaire and leaving it as broad as possible. Community Development Director Kienberger noted this database will also strengthen our relationship with other organizations that use the database. Any issues brought up outside of a business visit can be added to the database in a notes section. Member Jolley asked if any visits have been scheduled for next month. Community Development Director Kienberger stated his next step will be to secure the Sales Force access and set it up and then schedule business visits. He suggested having no more than three people on a visit. Community Development Director Kienberger would attend for staff along with a Council or EDA member or another viable business person, perhaps a Chamber member. Minnesota Marketing Partners This group used to be known as Positively MN Marketing Partners. This is one of the key groups identified in the marketing plan. It is a statewide marketing group that helps drive the state's efforts and holds many events. This organization has a yearly membership fee. They host an entire year of events around the country. We would benefit from strengthening our relationship with the Department of Employment and Economic Development (DEED). Community Development Director Kienberger noted there were national site selectors brought into Minnesota and given specific tours to member communities. Dakota County was a participant and the site selector visited Rosemount, Burnsville and Lakeville which are all members of this organization. The site selector compares what he sees here and around the country and provides ideas on what we can do to get on their radar. Chair Larson was in favor of this and felt we are taking a big step in the right direction. Community Development Director Kienberger stated last year he P3 EDA Minutes (Regular) June 23, 2014 Page 4 attended the MNCAR event in Minneapolis where there were 500 brokers in attendance. He currently participates in the quarterly meetings in St. Paul. He would provide information from those meetings to the EDA. Staff will identify valuable events for the city to have a presence. On August 7, 2014, a South of the River Realtor Forum will be held. Mayors throughout Dakota County are invited to attend. Staff members give a presentation on trends for their city. Farmington will have a presentation. Vermillion River Crossings Joint Work Session Recap There was a joint City Council / EDA / Planning Commission workshop on May 12, 2014, to discuss Vermillion River Crossings. The biggest topic was having a hotel in the development. Community Development Director Kienberger met with the broker and the process is still moving forward and they are optimistic they can break ground this fall. City Administrator McKnight gave a summary of the workshop discussion. Staff obtained the direction needed on an apartment complex proposal. The purpose of the workshop was to also educate the EDA and Planning Commission on the status of this development. The city will pay the $50,000 in assessments for the hotel lot. Council will hold a public hearing on this. Once the hotel is up, there could be further successes. There are further assessments on lots in the development. Member Zeaman heard from some that attended the workshop that they did not understand why the groups were brought together. He suggested in the future giving more of a context as to what we are doing. Member Wilson felt there was a disconnect as to why we were there. Anytime we get groups together, we have to have everyone on the same page. Member Jolley stated when we have the opportunity to get three groups together, we should have been prepared to facilitate the dialog. There wasn't a general voice that brought the ideas together, but it was good sharing. She was not sure what they accomplished. City Administrator McKnight stated part of it was that the EDA and the Planning Commission needed to know about the assessments and how significant they are. Development is slow to occur because of the assessments. 8. DIRECTOR'S REPORT This report provides updates on various projects and news items. Member Jolley asked that we not forget some of the good ideas that came out of the Grow Farmington effort. Some ideas were very good and very doable. She would like to see the EDA give some support to those efforts. We had a lot of people engaged in that P4 EDA Minutes (Regular) June 23, 2014 Page 5 effort. At the time it generated a lot of enthusiasm and then lost momentum. She would like to see Grow Farmington remain as a topic. Community Development Director Kienberger encouraged EDA members to send him any topics they would like to discuss at EDA meetings. In July he would like to discuss the marketing plan and how to move forward with it. Member Zeaman stated regarding Grow Farmington, the FBA ran into problems with doing marketing and having a non - profit status. He has spoken with a third party organization that is for profit that could get involved with Grow Farmington. He would like to see this effort come back. 9. ADJOURN MOTION by Wilson, second by Bonar to adjourn at 7:35 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant P5 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 • Fax 651.280.6899 www.cilannington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Marketing Plan DATE: July 28, 2014 INTRODUCTION/DISCUSSION Tom Whelan from Nemer Fieger presented the Marketing Plan (attached) in December of 2013, and the EDA discussed and accepted the plan in January of 2014. 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). It is also noted in the Marketing Plan that our first efforts focus inwardly — the SWOT analysis done as a part of the study is a good start towards this self - identification exercise. I would like to spend a significant portion of our meeting discussing the Marketing Plan and outlining a few key initiatives underway: • Grant opportunities — I met with DEED staff to identify potential projects in Farmington that could qualify for State dollars. This visit also served as a way to familiarize DEED staff with Farmington and future projects. Staff is exploring the CDA's Redevelopment Incentive Grant (RIG) program criteria and will be recommending an application for a downtown development study later this year. This effort will likely involve the EDA, Planning Commission, and Heritage Preservation Commission. • Maintaining contact with local brokers and site selectors while building new relationships with regional brokers. This interaction is being furthered through a MNCAR Affiliate Membership. • Broadband growth opportunities — attended the MN Office of Broadband Development webinar to learn more about the Border to Border Infrastructure Grant Program. Continued involvement with the Dakota County Broadband Study currently underway. P6 • Increased presence at EDAM events. Recently attended the Wayzata redevelopment tour information session. Continued service on their Board of Directors. • Code revisions impacting economic development — planning staff will be reviewing several categories later this year including: home occupations, data centers, brewpubs. • BR &E — Attended training on the new Sales Force resource and utilizing Greater MSP's list of priority visits. Continued coordination with the Dakota County Regional Chamber of Commerce to identify opportunities for joint visits. Currently creating Farmington thank you/follow -up postcards and will schedule a few strategic visits shortly. • Website updates — LOIS property management system, Incentives update with Commercial Rehab Grant Program, continued updates focused on quality demographic data, resources, and clarity of information • Communications Guide — Staff is currently reviewing a Communications Guide proposed by the Human Resources Department. This guide will help bring a unity to the City's communications and also display an extra bit of professionalism for our internal and external communications. This is just one example of how implementing a successful marketing plan reaches beyond the Community Development Department. ACTION REOUESTED Staff is requesting that the EDA review the attached materials and discuss the items outlined in the above memo. P7 City of Farmington, Minnesota MARKETING PLAN Leveraging Our Strengths To Capitalize On Economic Development Opportunities Prepared by: Nemer Fieger Contact: Tom Whelan, Principal 952.278.3124 twhelan @nemerfieger.com Date: December 16, 2013 P8 City of Farmington • Economic Development • Marketing Plan CITY OF FARMINGTON ECONOMIC DEVELOPMENT MARKETING PLAN Table of Contents Executive Summary 1. Project Purpose and Goals 3 2. Background 3 3. Discovery Process 4 3.1. SWOT Analysis 5 -6 3.2. Competitive Scene 7 3.3. What Site Selectors Want 8 3.4. What Farmington Has to Offer 9 4. Marketing Strategies 4.1. Business Retention and Expansion 10 4.2. New Business Attraction and Recruitment 11 -13 5. Target Audiences /Key Stakeholders 14 6. Tactics 6.1. Key Messages 15 6.2. What Farmington Needs to Offer 16 6.3. How Farmington Should Communicate 17 6.4. Development /Enhancement of Sales Tools 18 6.4.1 Website 18 6.4.2 Banners /Signage 18 6.4.3 Sales Collateral 19 6.4.4 Social Media 19 6.4.5 Visits to Farmington 19 6.5 Associations to be Made /Joined 20 6.6 Continuing Education 20 7. Specific Actions Tied to Goals 21 8. Implementation Timeline and Budget 8.1 Timeline 22 8.2 Budget 23 Business Questionnaire Appendix A Prepared by Nemer Fieger • December 16, 2013 Page 1 P9 City of Farmington • Economic Development • Marketing Plan Executive Summary Farmington seeks to implement a more aggressive marketing plan for its Economic Development effort. What follows is a plan that concentrates on Business Retention and Expansion, Product Readiness activities in anticipation of New Business Recruitment and Attraction, the recruitment and attraction itself and on -going education and involvement in the economic and development industry. It's recommended Farmington spend 2014 focusing mostly inwardly, ensuring local businesses are committed to the City and when considering expansion, will make Farmington their #1 choice. The widely quoted study Job Creation in America (Birch, 1987) reported that nationwide, up to 80 percent of net new job growth comes from existing businesses. Our best opportunities are likely found in our own backyard. Farmington desires industrial development, but available land is either limited or lacks sufficient infrastructure to be as attractive to site selectors /developers as land available elsewhere. While 2014's marketing efforts will engage land owners and developers in 'what's possible' discussions, the City must concurrently consider what kind of resource commitments it may have to make to consummate big economic development deals. This plan also calls for on -going contact with those who could consider Farmington for site selection. Its crucial we grow our database of contacts so when opportunities are presented, Farmington gets proper consideration. A budget estimate is attached. In addition to time for which we may be retained for creative services and consultation, Nemer Fieger will also commit 40 hours of pro bono time to ensure this plan is implemented. As has been discussed at recent EDA meetings, land availability and good intentions are not enough. You can have the best approach in the world, but if they don't like you, they won't work with you. Farmington must endeavor to be liked. Prepared by Nemer Fieger • December 16, 2013 Page 2 P10 City of Farmington • Economic Development • Marketing Plan 1. Project Purpose & Goals The Farmington Economic Development Marketing Plan presents a plan of action and pathway that markets Farmington as an attractive site with great opportunities for new businesses and expansion of current businesses. This marketing effort is part of Farmington's Economic Development Authority's (EDA) strategic plan to bring more businesses to Farmington and ultimately increase the tax base. The priorities for the group are to first market and promote Farmington, improve business retention and expansion, and explore shovel -ready sites. This Marketing Plan sets forth the following goals for Farmington: 1. Deepen relationships with Farmington Business owners through an aggressive Business Retention and Expansion program 2. Get closer to land owners /developers in order to be better prepared for Industrial development in the City 3. Get connected to site selectors and business owners who conduct site searches in the area 4. Get smarter about the industry through active participation in industry associations like Economic Development Association of Minnesota (EDAM) and Minnesota Commercial Association of Realtors (MNCAR) Successful implementation of this plan will enable Farmington to increase its competitiveness in the economic development arena, leading to an expanded tax base and employment growth that will improve the economic vitality and enhance the overall quality of life of the City. 2. Background The Farmington City Council adopted a Business Attraction Plan in 2013 and also began implementation of Economic Development Strategic Plan 2012 -2015 that describes a roadmap for the City. The strategy is based on the premise that the community can develop visions of what it wants to become, determine the strategies in which it has the best chance of being successful and apply resources to achieve them. If done systematically and over the long -term, Farmington can enhance its economic base while maintaining its core values. In September, 2013, the City retained Nemer Fieger to assemble a marketing plan for its Economic Development effort. Nemer Fieger specializes In grassroots marketing and marketing communications. Prepared by Nemer Fieger • December 16, 2013 Page 3 P11 City of Farmington • Economic Development • Marketing Plan 3. Discovery We sought information to gain understanding of the current situation and to ascertain what others have done to be competitive in the economic development space. In so doing, we reviewed Farmington's recent Economic Development Strategic Plan and Business Attraction Plan. We also have visited with site selectors, brokers, developers and other economic development professionals to acquire the information we needed to move forward with our plan. What follows is our assessment of the current scene. Prepared by Nemer Fieger • December 16, 2013 Page 4 P12 City of Farmington • Economic Development • Marketing Plan 3.1 SWOT Analysis In late September, we assembled a group of local business owners, developers and representatives of Farmington's Economic Development Authority to participate in a discussion of Farmington's Strengths, Weaknesses, Opportunities and Threats. Our Strengths and Weaknesses are items internal to Farmington, e.g. capabilities, resources and processes; those things we can control. The Opportunities and Threats are external, e.g. environmental, industry and competitive factors; things we can't control, but things we may be able to impact. Strengths can offset our Weaknesses and can also be used to invest in our Opportunities. We need to be aware of our Threats, knowing that we may be able to mitigate some of our Threats by investing in our Opportunities. Once we put together our lists, our attendees had the opportunity to prioritize the collective responses. Our aim was to come up with ideas that lead to strategies and tactics for our economic development marketing plan and, over the Tong -term, development of goal statements that will allow Farmington to: • Capitalize on its Strengths • Shore -up its Weaknesses (areas of Opportunity) • Invest in its Opportunities • Identify its Threats Here are the lists we collected: Strengths [te lE town ee 1-8 Schools w/ innovative learning — 4 River scenic — 3 LAO inability 3 30 minutes from downtown — 2 [Friendly helpful btlslness owners —2J Downtown — 2 Farm and ;business association support - 2j ATC -1 Population Over 20,000 —1 Low business Property tax rates —1 Opportunity to determine farm's destiny —1 Safety good PD /FD —1 Low bureaucracy — easy to do business —1 Lots of space —1 mm sq. ft. —1 Weaknesses Hi • h School location — No industrial labor force — Many live here but work elsewhere — 3 3 -4 bases "compete ": RT3, Dtwn, North, West) — 2 Low bureaucracy (government staffing resources) —1 Commitment to SVC —1 Growing and ability to keep growing Easy access to 35 and 52 Parks and recreation Housing boom through town Dakota city village Fairgrounds VRC Eco -aware friendly Lots of resources [Business friendly City spirit Grow Farmington Lots of opportunity to create jobs Many work here but don't live in Farmington (impact on retail /SVC) —1 Minimum $ low -mid housing Transportation School ties (Todd and Jay to discuss) Traffic along 50 makes it tough to turn into industrial park Prepared by Nemer Fieger • December 16, 2013 Page 5 P13 City of Farmington • Economic Development • Marketing Plan Opportunities Farmington as destination — 6 Draw the kids — parents follow — 5 [Land availability —3j Job creation — 3 Eagan Friday Night Lights — 3 Threats Lakeville /AV rental —1 Global biz community Competition Online commerce Uncertain state government Nat'l business School programs — 2 Improving economy Brand development Bottle the spirit Kids for years to come 300 day /yr site Missed opportunities Workforce issues Diversity of workforces Funding Will the kids come ? /stay? Uncertain econo We also asked the group for their thoughts on Farmington's brand i.e. what would we hope the perceptions of Farmington held by stakeholders. At some point, it may be appropriate to conduct focus groups to ascertain whether stakeholders do indeed have these perceptions. Brand Fun Tranquility [Sense: 0;0010 pity Historic Safe (Fdef►dlyi'uvelccttnirf9 Innovative (Combination of the above) Cooperative activity: Business /Govemment/Schooi No tower Farm Open space Cope or business 1 Open minas [_Community support j We've used some of this information in the development of strategies, tactics and key messages. As the SWOT input was relevant to the City at large, long of economic development, it's recommended this information be revisited by others for advancement of goal statements that impact all of Farmington. Prepared by Nemer Fieger • December 16, 2013 Page 6 P14 City of Farmington • Economic Development • Marketing Plan 3.2 The Competitive Scene Our economic development efforts have to be a thoughtful mix of offense and defense. As we work to attract employers to Farmington, our targets are objects of business retention and expansion efforts in their current homes, AND, new business attraction /recruitment targets for cities just as eager to invite them as Farmington. At the same time, Farmington businesses may be on someone else's target list for new business attraction. Which is why successful implementation of the business retention and expansion strategy discussed later is so crucial. When we draw a circle around the metro area that intersects communities roughly the same distance from the Midway area between Minneapolis and St. Paul as Farmington and consider those cities with decent proximity to major thoroughfares, we see several with the potential to be hearty competitors. Champlin, Andover, Shakopee and Woodbury are just four representatives of that group. We are also aware that cities to our south, like Albert Lea and Faribault, already have aggressive economic development efforts in play. A quick check of competitor websites unveils a plethora of information. Osseo, for example, lists several properties that are currently available and owned by the Osseo Economic Development Authority. We don't mean to suggest that Farmington should be buying and listing its own properties; the Osseo situation is just one way to approach economic development. Whether our competitors are ahead or behind Farmington in current economic development capabilities, we know we have to put more emphasis on our "game." Prepared by Nemer Fieger • December 16, 2013 Page 7 P15 City of Farmington • Economic Development • Marketing Plan 3.3 What Site Selectors Want It's pretty straight - forward. Site selectors want and need good information. They are the people who we, the economic development authority and community leaders, want to attract. Since they are likely considering multiple locations, we need to provide info with which they can make effective "apples -to- apples" comparisons. Minimally, we should include basic municipal data, a list of Farmington employers, what buildings are ready for occupancy and a list of available parcels of land, shovel -ready and not. Here's what we should be considering as we assemble our information: • Print newsletters and brochures that are handy for site selectors and consultants to stuff in a briefcase and read while later. Although e- newsletters are effective, many site selector consultants prefer "hard copy." • Whether in an e-mail or in hard copy, provide information to site selectors that they can't get anywhere else. (Though that doesn't preclude us from making our info available through other sites.) If at all possible, arrange "face time" with prospective site selectors. The "in- person" meeting is often much more effective than exchanging a -mails and telephone calls. Find out in advance the type of information needed by the site selector, and have that information readily available at the meeting. • "Face -to- face" meeting with a site selector is good, schmoozing is not necessarily so. These people make their decisions on factual information and data, market logistics and their clients' needs. We want to be liked, but site selectors' decisions or recommendations to clients are never made on the basis of a community's hospitality and amount of free flowing wine. When we are successful in our efforts, there'll be plenty of opportunities to socialize after the deal is done! • Put the right players on the team. This depends somewhat on the type of business proposal being considered but generally speaking you will need: Economic Development director, EDA board members, the Mayor, a banker, an engineer, a lawyer, possibly representatives from some companies already operating in Farmington, Vicki Stute from the Chamber and other community leaders as deemed appropriate. Prepared by Nemer Fieger • December 16, 2013 Page 8 P16 City of Farmington • Economic Development • Marketing Plan 3.4 What Farmington Has to Offer The Economic Development office has the comprehensive list of what's currently available for retail, commercial and industrial development. Parcels zoned business /commercial can be found throughout the City, most notably along MN -3 on the east side of Farmington, in the downtown core, and along north Pilot Knob Rd as It nears Apple Valley. Nearly 22.5 acres of highly visible space is available at Vermillion River Crossing, 212th St (Cty -50) just west of downtown. Almost 40 acres of land is available as part of the Farmington Business Park, located south of Co. Rd. 50 and east of MN -3. Closing deals on any of these spaces will be good news for Farmington. The most potentially tantalizing opportunities lie on 343 acres west of Pilot Knob Rd (see map), on the north side of 212th St W (Cty -50). The land is held by four families. Some of the land is currently being marketed. Sewer and Water are as near as Flagstaff Ave and 212th St W and Pilot Knob at 212th St W. As demand is ascertained, The City will need to make decisions on which parcels could be updated to shovel -ready status from the farm land it currently represents. 6 Total Acres West of Pilot Knob: 342.2 Cdy of Ferminpbn Northwest 50/31 Information DEERNARD MURPHY FARMS LP 93138 _ 208T I l WI rIUER ( ��,. FAMILY INC ^! (Agriculture) ,�, i • rO �, 58.92 r� (Pal-WO-per) IP l u' !i .a I Space) rzl P,--r;) uocHSPPUUC i 931 I r,� 1 i i I ` ,._.a:. 2107I-STW 1 • .V ti BERNARD' E,T.I DNE�Y j 3 MURPHY z FAMILY • FARMS jjj LP ■ 68.88 LT NEiMP 6Bi a4 E � " 1 I �o I POR.MKR • 10 i 1■.. i'RE AL 1 4 _E Pi . ESTAT LLC F... r.m -..rA Z.-- .. ..- ...!4- w..- ... -':s x. m ....iai....... �' ��00S6•"` 9_R=` t.1, n Traffic Volume -19300 -212TsT w _______ T. ffic_Vo fume:-13SO0 g 1. POR -MKR REAL ESTA.SEAt&E 5.63 2. POR -MKR REAL ESTATE LLG 2.1'5 3. PILLO KNOB PROPERTIESL3G 8.91- BusrresJ6rfifieYcraf F1 -, DEVNEY FAMILY LTD PTNSIIP 34.97 T . -71 i 84 �^ I7NN M )(Highway r' I =7 otBusiness). DEVNEY ;e Kp; 23.17 z aaa —A.., -, p 20UTH ST V■— j xi i31 1 . l' I o.l.e, b4 L,,J Parcels Sander/ Sremer Water f o url b0 300 Faal Prepared by Nemer Fieger • December 16, 2013 Page 9 P17 City of Farmington • Economic Development • Marketing Plan 4.1 Business Retention and Expansion Current Situation The City is generally confident that local businesses are happy to be here. This needs to be confirmed and, a commitment for any potential expansion here should be sought, through scripted meetings. While we are eager to attract new businesses to Farmington, we should never be so outwardly focused that we ignore our existing local businesses, those who have allowed us to grow to be what we are today. We'd argue that this will be the most impactful effort Farmington should undertake in the near -term. Why is this so important? Here are three very important reasons: • It's going to be much easier to retain and grow the relationship with those businesses already here than it will be to develop new relationships with businesses who don't know us as well. • Happy Farmington business owners will become another line of offense for us as we pursue new economic development from outside the area. They can be subject matter experts and advocates when they get questions from those considering a move to Farmington. And finally, from the best offense comes a good defense. • We can be pretty sure that those cities with well - established economic development efforts are calling on Farmington businesses, attempting to lure them away entirely and /or convince them to expand to another location outside of Farmington. Your business retention and expansion plan should be thoughtful, deliberate and disciplined. While meetings with local businesses may be friendly and casual, reminiscent of Farmington's small town nature, your intent must be to remind your contacts why Farmington is a good place to do business and seek their commitment to make Farmington their only choice for possible expansion. Participants in the visits should be hand - selected and should be groups of up -to- three, minimally including the Economic Development Director and the mayor or another city official. It would also be desirable to include a Farmington business owner or another member of the City's Economic Development Authority. Conversations should be scripted to ensure we get our key messages across AND obtain all of the information we need. A questionnaire has been developed for your use, found in Appendix A. By asking these specific questions, you'll be able to create a database that will equip you to make decisions and pursue new strategies. Prepared by Nemer Fieger • December 16, 2013 Page 10 P18 City of Farmington • Economic Development • Marketing Plan 4.2 New Business Attraction and Recruitment Current Situation We are currently in short supply of sites that are ready -to -go for industrial development. Other potentially available sites are not yet on the market or require major redevelopment work. Regionally, the competition is fierce with an ample supply of shovel -ready sites outside of Farmington. We need to be prepared for demand when it comes. This year, the plan calls for engaging local land owners and developers to gain an understanding of what is possible and how quickly we could meet the demand. New businesses will come to Farmington in three ways: first, when we have solicited site selection through outbound communications i.e. we hear about specific opportunities and chase them down; second, when we are the recipients of inbound requests for information and in responding to those requests, we Initiate conversations that lead to formalized discussions about the viability of Farmington as a new site; and finally, through a long- process of relationship development with key stakeholders who, over time, can help us with efforts in our inbound and outbound solicitations. Let's tackle them in reverse order. Relationship Development In those times we're not planning for and executing business retention calls and fielding requests for information, we need to be networking and communicating with those people who may be able to get us into new conversations with potential decision makers. (See Target Audiences /Key Stakeholders section.) Our "cost -of- entry" for initiating these meeting Is having credible information about Farmington that has the potential for influencing a business decision. That gets us in the door. As mentioned earlier, our objective is to be "liked' When we have good (and timely) information AND people like us, the conversations continue and relationships develop. Generally, if we have the information and people DON'T like us, we're not going to get very far in our relationships. Sounds pretty simple, doesn't it? Maybe. But, it's been our experience that many people don't think about it that way and their relationships get stalled. The important thing is to remember that it takes different levels of attention and conversation to ensure our contacts like us. Think of it like having to recognize when and how to dance. If one's contact isn't ready to 'slow dance' i.e. get more familiar, being overly comfortable with him or her probably isn't going to work. Conversely, an easy -going contact probably won't respond to a stilted or more serious approach. Once we have the basis of a good relationship, we need to work to maintain it, by continuing to have good and helpful things to say. What we learn is that in the back - and -forth of our conversations, we will be getting good information in return. And new relationships will develop. Responding to Inbound Requests for Information We will continue to be solicited for information by site selectors and owner's representatives, either directly or through third - parties like Greater MSP and Dakota County Community Development Agency. Prepared by Nemer Fieger • December 16, 2013 P19 Page 11 City of Farmington • Economic Development • Marketing Plan Most of the requests will very specific and require a thoughtful response. Others will seem to be "fishing expeditions; asking for the moon. Let's assume that most will be of the former, legitimate requests with a specific need in mind. While a complex request Is usually accompanied by a realistic deadline, others may require a quicker turn - around. Since we have up -to -date information of what properties or parcels are available, we should be prepared to respond to these requests quickly. Even if we don't have exactly what the selector is seeking, we should respond in some form. Perhaps we have an altemate option that might work. Unless the request specifically asks we not respond unless we can deliver to spec, our response gives us an opportunity to keep a foot In the door for future considerations. Though we might not dose this deal, our "win" could be capturing another contact for our database. Here Is a recent example of what appears to be a far - fetched request • 50-mile radius of MSP • 35 to 40 useable acres • Initial facility would be 250,000 sq. ft. - 280,000 sq. ft.; with ultimate size of 500,000 sq. ft • Site would need to be zoned to allowfor 53' total building height • Site would need to be 'ready for construction starting spring, 2014 • Employees: Approximately 290 employees within 24 months this is a food warehouse/distribution company. It will involve cooler and freezer space.) Capital Investment A. Facility (280,000 SF) $28,000,000 B. Site (35 to 40 acres) $Value is site specific. C. Equipment/racking $3,000,000 - $4,000;000 D. Other tangible personal property $8,000,000 - $10,000,000 E. Finished goods inventory $35,000,000 The site selector has requested the following information 1. No cost industrial site to the Company 2. All required infrastructure improvements to the selected site, at no cost to the Company 3. Property tax abatements and/or TIF 4. Waiver and/or rebate of utility connection related fees and building permit fees 5. Accelerated permitting - Facility development and environmental related 6. Temporary office space (approximately 5,000 SF) during the project's physical development; at no cost to the Company Please respond to this email with a description of site and any financing options. Still, the site specifications they included are reasonable expectations. It was later in the request when they asked for the City to pay for nearly everything that it started to sound excessive. We'd guess that they will modify their request and some community willl be able to provide solutions that will meet the needs of the project. We recommend as part of your tool kit, you develop a form that addresses most of the requests you receive; one that can be populated with relevant information and emailedlmailed quickly. Prepared by Nemer Fieger • December 16, 2013 Page 12 P20 City of Farmington • Economic Development • Marketing Plan Outbound Communications You should plan for a few different needs. The first to consider is how you're going to send information. The communications package should be customized to what you know about the potential need. Key components: specifics on the site, information on the surrounding area, traffic counts; business climate factors, like permit processes, tax rates, area job force, transportation, etc., and other specialized assistance you may have to offer. We'd also recommend you Include a personalized letter from the Mayor that indicates how seriously you're taking this interaction. it also reinforces the small town spirit of which Farmington is so proud. A second important tactic is an on -going communication piece you send to those in your database. Perhaps you call it "Fresh from the Farm(ington)" or " Farm(ington) to Your Table." The purpose of the piece is two fold. First, it keeps you top -of -mind with your prospects and second, it gives you a regular opportunity to let people know what you have available for them in Farmington. This information is interesting and potentially helpful to people already doing business in Farmington. Remember, they can be a second choir for you and of real value in your external economic development work. You can use It to communicate local buslness news and also for reiterating your key messages, those conversation- starters we hope everyone uses when they're discussing Farmington (See Key Messages.) and its economic development Intentions. Uwe decide email is the best way to send the latest news from Farmington, we have to ensure that our recipients will accept it, opting -ln, and always give them the chance to unsubscribe. We will work with you to develop this tool. Prepanvd by Werner Fieger • December 16, 2013 Page 13 P21 City of Farmington • Economic Development • Marketing Plan 5, Target Audiences /Key Stakeholders We've listed those groups you should stay dose to and recommended you maintain your connections. Farmington Citizens: public notices, occasional coverage in the Farmington Independent, cable television Farmington City Government: Council /EDA -- emaiis and monthly meetings. They should also be included on all of your mass communications. Farmington Business Owner /Operators: one - on-one assessment meetings; mass communications; website Farmington Land Owners (and their representatives): one-on -one conversations; they should also receive regular updates on our progress Developers with Farmington Projects: regular communications, our mass communications vehicles, one -on -one meetings as required Brokers /Real Estate Professionals: monthly email communications of what's developing In Farmington, MNCAR meetings and expo • External Business Owners /Site Selectors and Owner's Representatives: monthly email communications; personal calls when the relationship allows it Business Advisors (Board of Education, Chamber of Commerce, Dakota Electric, etc.): more often than not, individual phone conversations will be helpful; occasional group meetings are advisable, mass communications vehicles.. Economic Development Peers: There's good information to share with professionals who are alternately competitors and allies. Dakota County Community Development can be a good conduit. Membership in Economic Development Association of Minnesota Is advised. Prepared by Nemer Fieger • December 16, 2013 Page 14 P22 City of Farmington • Economic Development • Marketing Plan 6. Tactics We Just addressed our strategies, our next moves: Retaining and Expanding Farmington Business and Attracting New Business to Farmington from the outside. Next we will discuss tactics, that is, how we will actually carry out the plan. The difference between the two concepts can be remembered with the phrase, "strategic is doing the right things -- tactical Is doing things right? 6.1 Key Messages What are key messages? You want everyone to understand the same basic message. Each individual may remember different details, but they should all be able to sum up your message consistently in one or two sentences. If they are properly developed and delivered, those sentences will be your key messages. To be useful, key messages must • Be few in number, usually no more than two or three • Be short and concise, generally no more than a sentence or two • Be written down You know the basic speech structure: Tell them what you're going to tell them, tell them, and then tell them what you Just told them. That, in a nutshell, Is the proper use of key messages. You should start any communication with your key messages, return to them throughout, and then summarize with them at the end. Developing key messages becomes especially valuable in settings where other issues are likely to come up. If you have formalized your key messages, you have something to return to so you can keep the discussion on track. Any supporting materials you provide should convey the same key messages. If you use slides or overheads, they should be organized around your key messages. To be truly effective, you must practice. (See How Farmington Should Communicate.) There is just something about saying things out loud that brings a clarity that is not always possible just by looking at the written word. If you find that your key messages do not flow off the tongue easily, redraft them. Test the messages with someone you trust to see if they make sense and are credible. During the Discovery phase of our process, particularly during the SWOT exercise, we paid close attention to what people were saying about Farmington; and, when we discussed "Brand," how others perceived Farmington. Here are three key messages that will serve as conversation starters for you. Each can be substantiated with current and relevant examples. • Farmington is Business - Friendly. • Farmington Has Room For You. • Farmington Will Help You Grow Your Business. (Some of this content came from an article, written by Neal Linkon that originally appeared in PR Fuel.) Prepared by Nemer Fieger • December 16, 2013 P23 Page 15 City of Farmington • Economic Development • Marketing Plan 6.2 What Farmington Needs To Offer If we're going to be true to what we say in association with our key messages, we have to put together competitive packages that work for our prospects and will, in the long -term, work for the City. We have more competition than we need. And many of those cities have economic development efforts that have been working effectively for a long time. Our objective must be making Farmington known for being good for business. Word gets around when something good happens. Prepared by Nemer Fieger • December 16, 2013 P24 Page 16 City of Farmington • Economic Development • Marketing Plan 63 How Farmington Should Communicate As was discussed at a recent EDA meeting, the three killers of a successful branding project are Local Politics, Lack of Money and Lack of Champions. We understand we have the budget to be successful and there seems to be an ample supply of champions. Any political/territorial issues need to be nipped. Once this plan has been accepted and implementation has begun, we need the Mayor, Council and Economic Development Authority to make a polite, firm request of the City to jump on board. Economic Development is good for Farmington. It doesn't matter where in the City it's taking place. Over time the efforts will involve each part of the City. We've already addressed the key messages and the spirit in which they should be delivered. t3ecoming Better Actors We once went through new business boot camp led by a veteran of the agency wars, Robb High, who used to say any personal contact with new business prospects should be considered a stage production ... never a meeting." They need to be carefully planned and thoroughly rehearsed to create an entertaining and engaging show." The content we present is important, but what many people do is spend most of thelr time and energy on content preparation and little or none of their time working on the most important piece of creativity, the presentation itself. Our information along with a competitive package gets us in the door. Our personalities and the way we engage is what gets us liked and trusted. And that combination greases the skids for new business wins. The best actors weren't born with their talent. They had to work hard to perfect it. And so must we. When we communicate with the written word, we need to be clear, concise and warm. Like Farmington. 6.4 DevelopmentlEnhancement of Sales Tools According to industry sources, nearly 97% of initial site selection screening Is done on -line, so we'll consider your website first. Visitors will associate the quality of your EDC's web design with the quality of Farmington's economy. That's why it's so important to present website visitors with a professional, informative web design that portrays the strength and credibility of Farmington's economic development organization. Prepared by Nemer Fieger • December 16, 2013 Page 17 P25 City of Farmington • Economic Development • Marketing Plan 6.4.1 Websitn Your current website is serviceable. The information is there, but it's kind of tough to navigate. If one scrolls over enough buttons, one can usually end up in the desired spot, but needs to be pretty intuitive. There are better and more compelling ways to package your information. The Internet has several sites that cover best practices for economic development websites. Here are examples of a Chamber and a state economic development site that allow easier access to information and /or present the Information in a more interesting way. www.indianriversites.com In an application developed by GIS Planning, this would seem to be a site selector's dream. Available properties are seen immediately with an easy sort, which we've come to learn is what they want. If they desire more Information, the tool bar atop the page gives them entree to detailed economic development - oriented Information on the cities in which they have interest. www.missouripartnership.com Application from LocationOne Information --The Show-Me State's site. The way they say it — "By taking advantage of the LocationOne site selection tool, you can make the process of choosing the right location for your business easy." While we don't suggest you invest in such an extensive make -over, what we found particularly helpful was the way they packaged basic economic development information using compelling graphics. We should consider adding some testimonials from our local businesses. Having someone other than ourselves thumping the drum is genuine. Enhancement of the website is a longer discussion that should be held soon. 6.4.2 BannerslSignage We recommend you enhance your ED effort with an investment In a portable display kit that can be put up and taken down at trade shows, expositions, etc. The display could be used full -time at City offices and transported to expos as needed. We attended the MNCAR expo this fall and saw several municipal and county ED agencies exhibiting. If we elect to compete at thls level, we need to have materials that establish our credibility. The "First Impressions" work done in June, 2010 included some comments about the signage as visitors enter Farmington. Though not critical In the near -term, we recommend that Farmington's ED Intentions are somehow acknowledged in welcoming signage. "Farmington is Business- Friendly.° 6.4.3 Sales Collateral Much of the information you send out will be in response to a specific request for information. To impart general informa- tion, we recommend you have a'leave- behind' piece that's a step -up from a mass - produced 8.5" x 11" Probably a tri -fold on nicer stock that a site selector can easily put into his/her jacket. If there's specific info we choose to include, a customized 8.5" x 11" sheet can also be included. The latest digital- printing technologies allow for quick and cost- efficient printing, even for smaller quantities. This next idea hasn't yet completely gelled, but we believe leaving something a little more memorable than information is a good Idea, something that will always trigger a thought of Farmington. Like a small plant (a pepper plant ?) that connotes both the 'farm' in Farmington and that business conditions in Farmington are 'growing hotter.' Even if the plant doesn't stay on our contact's desk, it will have a presence somewhere. We can't think of too many people who would toss a plant! Prepared by Nemer Fieger • December 16, 2013 Page 18 P26 City of Farmington • Economic Development • Marketing Plan 6.4.4 Social Media Our younger prospects favor what we with tenure would call Tess- traditional forms of communication. They get most of their news and information on -line rather than through (more) traditional means like print and broadcast. Their "smart phones" are never out of their sight. What to do? Linkedln and Twitter would seem to be our best points of entry; the former for making connections and the latter as a conduit for sending /receiving breaking ED news. Though social media is a concurrent strategy, we recommend parking an aggressive pursuit until later in the year, after we've had the opportunity to evaluate our progress In BRE and New Business Recruitment. 6.4.5 Visits to Farmington Hotter prospects wilt benefit from a market tour. They may make the trip by themselves, but we should provide for the chance to lead them around ourselves. When that's the case, Economic Development- oriented signage might be helpful, either at a particular site or near the entrances to Farmington. It shows the prospect you're thinking and can also serve as a reminder to other Farmingtonians that their ED office is active in the marketplace. 6.5 Associations to be Made/Joined We need to see and be seen by people with whom we might be able to do business. We already have membership in EDAM and want to ensure we are taking full advantage of our investment. Committee and board involvement usually bring higher levels of communication, the more we hear, the more we team, the more prepared we are to be successful. We made a contact with the executive director of MSCA, the Minnesota Shopping Center Association... brokers, investors, retailer and all professionals serving the Minnesota retail real estate industry for mutual, benefit. This is an organization that can also provide valuable information. On -going participation in the Dakota County Regional Chamber will also give us access to timely and helpful Information. Not only with relationships within the Farmington business community be strengthened, we will also garner important contacts within the region. MNCAR, the Minnesota Commercial Association of Real Estate and Realtors has a reputation for providing invaluable contacts, future - focused education and the most accurate information. The investment in exhibiting at MNCAR's annual expo will pay dividends. Positively Minnesota Marketing Group is a public- private partnership that works together to develop a broad -based marketing initiative to promote Minnesota and its business economy at local, regional and national venues. Quarterly meetings. Another good opportunity to raise Farmington's visibility. Prepared by Nemer Fieger • December 16, 2013 Page 19 P27 City of Farmington - Economic Development • Marketing Plan 66 Continuing Education Opportunities Taking advantage of industry- oriented programming accomplishes a couple things: you're able to renew old and make new contacts and, you get to cover topics completely relevant to your work. EDAM Winter Conference — Minneapolis Marriott Northwest, January 23 -24, 2014 $245 member rate. Premiere Economic Development Conference offers Farmington another chance to interact with Minnesota's top industry professionals Upper Midwest Basic Economic Development Course — UMD, July 21-25, 2014 $600 plus lodging. Topics include: • Business Retention and Expansion • Strategic Planning • Marketing /Attraction • Economic Development Finance • Small Business and Entrepreneurship Development • Community/Neighborhood Development • Real Estate Development and Reuse • Workforce Development • Managing Economic Development Organizations IEDC — the International Economic Development Councli; several times a year, 1EDC offers webinars and other on -line learning opportunities. As an example, this past November, they offered a 6 -part series "Getting the Most Out of Social Media." Farmington already has membership. These webinars are generally cost - effective. This one was $95 for members. The best presenters continuously refresh their skills. (We discussed becoming better actors earlier.) We recommend the ED Director and the EDA team Invest In presentation training. One of our favorites is Betsy Buckley, of What Matters, Inc. (what - matters.com). Betsy is the former sales development director at Weber Shandwick, one of the area's leading Public Relations firm. She, and others tike her, would customize a program that meets Farmington's specific needs. Prepared by Nemer Fieger • December 16, 2013 Page 20 P28 City of Farmington • Economic Development • Marketing Plan 7. Specific Actions Tied to Goals Here are re- introduced the goats first brought forth in 1.0 Project Purpose. Specific actions have been tied to these goals. in the next section, we apply them to the implementation timeline and budget. 1. Deepen relationships with Farmington Business owners through an aggressive Business Retention and Expansion program. 1.1 Average at least two calls per week in 2014 on local businesses. By year -end, you'll have information from a minimum of 100 Farmington businesses. 1.2 Build the database that results from information garnered on these calls. 1.3 Prepare sales collateral stating your intentions that can be left with each of your contacts. 1.4 Review database each quarter to determine if strategy needs to be modified or if new strategy can be introduced 1.5 invest in supplemental memento of your visit 1.6 Handwritten thank you notes to every contact 2. Do the same with local land owners /developers in order gain the latest information to be better prepared for industriaUcommerc €ai development in the City. 2.1 Build database of known owners /developers with Farmington land hoidings•either available or not yet so 2.2 Quarterly meetings with owners of large parcels and /or their representatives. 3. Get connected to site selectors and business owners who conduct site searches in the area. 3.1 On -going acquisition of contact info for site selectors, real estate brokers, business owners, representatives 3.2 Develop/implement email marketing campaign that targets list you've acquired 3.3 Make website more user - friendly 3.4 Conduct market tours as are necessary 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) Personal development also included here. 4.1 Attend EDAM Winter Conference, January, 2014 4.2 Participate as exhibitor at MNCAR expo, October, 2014 4.3 Attend Upper Midwest Basic Economic Development Course, Duluth, July, 2014 4.4 On -going IEDC webinars /on -line programs 4.5 Creation of Exhibitor Signage /Banners for on -going use Prepared by Nemer Fieger • December 16, 2013 Page 21 P29 City of Farmington • Economic Development • Marketing Plan 8. Implementation Timeline and Budget 8.1 Timeline Timeline — Farmington Marketing Plan 1.1 Action Prepare sales collateral materials Q1 2014 Q2 Q3 Q 01 2015 Q2 Q3 Q4 1.2 Average at least two calls per week 1.3 Build/maintain the information database 1.4 Review database for plan updates 1.5 Invest In supplemental memento 1.6 Handwritten thank you notes s - 2.1 Build/maintain database of known owners/developers 2.2 Quarterly meetings with owners of large parcels 3.1 On-going acquisition of contact info for site selectors 3.2 Develop/implement email marketing campaign 3.3 Make website more user- friendly -- 3.4 Conduct market tours as are necessary 4.1 Attend EDAM Winter Conference 4.2 Participate as exhibitor at MNCAR expo 4.3 4.4 4.5 Attend Upper Midwest Basic Economic Development Course On-going IEDC webinars/online programs Exhibitor Display/Banners 4.6 Team Presentation Training Prepared by Nerner Fieger • December 16, 2013 P30 Page 22 City of Farmington • Economic Development • Marketing Plan 8.2 Budget Budget— Farmington Marketing Plan 1.1 Qcfion. ... S WEsti lgr e". $2000 -4000 Prepare sales collateral materials 1.2 Average at least two calls per week $1,000 1.3 Build /maintain the information database $0 1.4 Review database for plan updates $0 1.5 Invest in supplemental memento $1000 -2000 1.6 Handwritten thank you notes (for all in- person meetings) $100 2.1 Build /maintain database of known owners /developers $0 2.2 Quarterly meetings with owners of large parcels $0 3.1 On -going acquisition of contact info for site selectors $0 3.2 Develop /implement email marketing campaign $2000 -5000 3.3 Make website more user - friendly $5000- 20,000 3.4 Conduct market tours as are necessary $1,000 4.1 Attend EDAM Winter Conference /annual dues $645 4.2 Participate as exhibitor at MNCAR expo $1000 -1500 4.3 Attend Upper Midwest Basic Economic Development Course $1,250 4.4 On -going IEDC webinars /online programs 1/Q $500 4.5 Exhibitor Display /Banners $2000 -7000 4.6 Team Presentation Training $1000 -$3500 TOTAL $18,495- 47,495 Prepared by Nemer Fieger • December 16, 2013 Page 23 P31 City of Farmington • Economic Development • Marketing Plan Business Visitation Questionnaire Firm Date Address Name, Title of Officer(s) Interviewed Contribution to the Local Economy 1. What is the general category of goods or services sold? Specify Standard Industrial Classification Code (SIC), If applicable. Agriculture............ .......... Manufacturing.. Transportation, Utilities or Communication Finance or Insurance Retail or Wholesale Trade Other (please describe): 2. What year did your firm start business In Farmington? 3. Estimate the number of jobs as well as the total wages and salaries $ the firm provided in the community last year. 4. Accounting for part -time and seasonal jobs, how many full time equivalent (FTE) jobs did the firm provide last year? 5. What percentage of the firm's employees live: InFarmington... ........................ ............ ........ .......... . ......... ................. ...... ..... ....... ..... ......... ... . ....... In Dakota County 96 Outside Dakota County ................................... ............................... % 6. Has the firm's local employment increased in the last three years? , decreased or remained about the same Prepared by Nemer Heger • December 16, 2013 P32 City of Farmington • Economic Development • Marketing Plan 7. Have sales increased ,decreased three years? or remained about the same in the last 8. What portion of the firm's annual sales are made to customers: In Dakota County? Outside Dakota County but in Minnesota? Outside Minnesota but in the U.S.? Outside the U.S.? 100% 9. Where are most of the firm's major competitors located: In Dakota County? Outside Dakota County but in Minnesota? Outside Minnesota but in the U.S ? Outside the U.S.? y, 100% The Local Business Climate 10. What is your overall opinion of Farmington as a place to do business? Excellent Good Fair Poor No Opinion 11. Describe your satisfaction with these business climate factors. Are you very pleased, satisfied or wish for improvement? SATISFACTION Pleased OK Improve Financial services.............. ............. . . . .. . . ....... ....... ...... . ... ...... ....... ....... . Other business /professional services ..................... ............................... Land /site costs...... ........ ........... ...... ....... .......... ........ ......... ....... Proximity of customers.. ..... ....... . ........ ....... ........................ ....... .......... Proximityto suppliers .... .................... ........... ............................... Labor (costs /training /availability) Tax rates Permit processes............ Prepared by Nemer Fieger • December 16, 2013 P33 City of Farmington • Economic Development • Marketing Plan 12. Rate the quality of transportation and public services the firm requires (good, adequate, poor). Then consider cost of those services (high, fair, low). Transportation Air Rail Truck Inland Port Quality of Service Good Adequate Poor Cost High Fair Low Quality of Service Cost Public Services Good Adequate Poor High Fair Low Water Sewer Services Waste Disposal Electricity Natural Gas Phone Services Fire Protection Police Protection 13. Several organizations offer specialized assistance to business and industry. They include chambers of commerce, local development groups, trade associations, public agencies and educational institutions. A. Have you asked such organizations for help? Yes No B. Which ones were most helpful? (briefly identify) C. What other types of specialized assistance would you recommend to improve the area's business climate? (Describe briefly) Prepared by Nemer Fieger • December 16, 2013 P34 City of Farmington• Economic Development • Marketing Plan Business Plans and Expectations 14. Do the officials responsible for the firm's expansion and retention plans live in Farmington? Yes No If no, where do they live? 15. Briefly describe changes which are planned for the next three years in: A. Employment B. Facilities size or location C. Production Processes D. Other (please explain) 16. Rank the importance of the following factors in choosing and /or remaining In Farmington: Essential Convenient Unnecessary Business and professional service Land /site costs Proximity to customers ....................... ............................... Proximity to suppliers ........................ Distribution /collection costs .............. ............................... Laborcosts.... ...... . ...... . .... ...... . ... . . . . ..... ....... Education HealthCare Quality of Life Prepared by Nemer Fieger • December 16, 2013 P35 City of Farmington • Economic Development • Marketing Plan 17. In terms of dollar value, estimate the percentage of raw materials or goods needed for production and the percentage of goods sold that are shipped by: Goods Needed Goods Sold for Production Truck Rail Air Inland Port 18. Do you buy or sell goods or services that could either be locally produced or further processed locally to increase local employment? (Describe briefly) Expansion and Retention Challenges 19. In general, are new entry level workers adequately trained to meet your needs? Yes No 20. Have you had difficulty recruiting or retaining employees in the following categories? (Cross out those Recruiting Retaining that don't apply) Yes loo yes 1I Professional Managerial Sales Services Agriculture _ Machine operatives Precision production _ Technical Handler /laborer 21. Do you anticipate needing employees who are either better or differently trained in the next two or three years? Yes No If yes, please explain: Prepared by Nemer Fleger • December 16, 2013 P36 City of Farmington • Economic Development • Marketing Plan 22. Do you presently have room to expand at your present location? Yes No If not, why? 23. Do you have excess space you would be willing to lease? Yes No If yes, how many square feet? 24. Do you have concerns or suggestions for improvement in Farmington facilities or services? Police Fire Water Sewage Zoning/Permits Other 25. Are there any other comments you would like to make? THANK YOU FOR YOUR TIME Prepared by Nemer Fieger • December 16, 2013 P37 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 • Fax 651.280.6899 www.cilarmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Community Development Block Grant Program Update DATE: July 28, 2014 INTRODUCTION/DISCUSSION The federal Community Development Block Grant (CDBG) Program provides annual grants on a formula basis to Dakota County, which then distributes funds to participating cities and townships. This program was established to develop viable urban communities by providing decent housing and a suitable living environment. CDBG funding expands economic opportunities for low - and moderate - income persons and eliminates slum/blight conditions. Dakota County has been receiving CDBG funds since 1984. The Dakota County CDA administers the program through a subgrantee agreement with Dakota County. Every January cities in Dakota County apply to the Dakota County CDA for the amount estimated to be approved by HUD.. Faxmington's estimated amount for 2014 is $42,717. The January application requested this allocation fund the Commercial Rehabilitation Grant Program — an overview of this program is attached. Previous years' allocations have funded a variety of activities including the Residential Rehabilitation Loan Program, Business Development Grant Program, Public Service — Senior Center Activities, and most recently the Marketing Study planning project. The only one of these programs with an active balance is currently Public Service — Senior Center Activities which is administered by the Parks & Recreation Department. These funds were received by the CDA this month and are now ready to be utilized for our Commercial Rehabilitation Grant Program. An update has already been posted on the City website and more focused marketing of this program will be done through other City publications and via staff interaction with commercial property owners. Staff is currently exploring options for the former Riste property in Downtown (see attached map), which was acquired and demolished with CDBG and CDA Redevelopment Incentive Grant dollars from 2006- 2008. It is my understanding that there has been little activity on this parcel and options should be discussed for the potential sale of this property. A successful sale would result in the majority of the dollars returning to the Farmington CDBG program as "program income ". P38 ACTION REQUESTED This information is being provided as an update to the EDA to keep them apprised of current CDBG program opportunities. Additional direction is being sought on if staff should initiate next steps to market the former Riste property for sale. P39 Downtown EDA Parcel Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This Is not a legal document and should not be substituted for a title search,appralsal, survey, or for zoning verification. Dakota County assumes no legal responsibility for the Information contained In this data. P40 Map Scale 1 inch = 50 feet 7/22/2014 CDBG ELIGIBLE ACTIVITIES DEFINITIONS The following are summary definitions of Community Development Block Grant Eligible Activities: Please Note: Although an activity may be deemed eligible for CDBG funding, it does not guarantee funding. The Community Development Needs for the CDBG Program in the Comprehensive Plan sets forth the priority of needs and as such, dictates which types of eligible activities may be funded in a given year. CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government or used for political activities. Acquisition /Disposition: The use of CDBG funds to acquire real property, in whole or in part, by purchase, long -term lease, donation, or otherwise, for any public purpose. Real property to be acquired may include: land, air rights, easements, water rights, right -of -ways, buildings and other property improvements, or other interests in real property. Demolition /Clearance: Clearance, demolition, and removal of buildings and improvements including movement of structures to other sites. Economic Development Activities: Economic development activities may include, but are not limited to: (1) Construction by the grantee or subrecipient of a business incubator designed to provide inexpensive space and assistance to new firms to help them become viable businesses, (2) Loans to pay for the expansion of a factory or commercial business, and (3) Providing training needed by persons on welfare to enable them to qualify for jobs created by CDBG- assisted special economic development activities. The level of public benefit to be derived from the economic development activity must be appropriate given the amount of CDBG assistance. Rehabilitation: Rehabilitation related activities may include single - family rehabilitation, multi - family rehabilitation, energy efficiency improvements, public housing modernization, and rehabilitation of commercial properties. General Administration: CDBG funds may be used for the general administration costs incurred by a Subrecipient to administer their CDBG program. Administration costs directly associated with a CDBG activity should be part of the activity as project administration. Relocation: CDBG funds may be used for relocation payments and assistance to displaced persons, including individuals, families, businesses, non - profits, and farms, where required under section 570.606 of the regulations (pursuant to the Uniform Relocation Act). Public Facilities /Improvements: CDBG funds may be used by the grantee or other public or private nonprofit entities for the acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of architectural barriers to accessibility), or installation, of public improvements or facilities. Buildings for the general conduct of government cannot be acquired or improved with CDBG funds. This includes neighborhood facilities, firehouses, public schools, and libraries, as well as water and /or sewer treatment plants. The regulations further specify that facilities that are designed for use in providing shelter for persons having special needs are considered to be public facilities. Public Services: CDBG funds may be used to provide public services (including labor, supplies, and materials), provided that each of the following criteria is met: 1) The public service must be either a new service or a quantifiable increase in the level of service; and 2) The amount of CDBG funds obligated within a program year to support public service activities under this category may not exceed 40% of the City's allocation and the total public services of all Subrecipients may not exceed 15% of the total grant awarded to Dakota County for that year. Planning: Includes studies, analysis, data gathering, preparation of plans, and identification of actions that will implement plans. The types of plans which may be paid for with CDBG funds include, but are not limited to: Comprehensive plans; Individual project plans; Community development plans, Capital improvement programs; Small area and neighborhood plans; Environmental and historic preservation studies; and Functional plans (such as plans for housing, land use, energy conservation, or economic development). Homeownership Assistance: Homeownership assistance activities may include financial assistance for downpayments, closing costs or other part of the purchase process and counseling for pre - purchase, post - purchase or foreclosure prevention. P41 City of Farmington Community Development Block Grant Commercial Rehabilitation Grant Program City of Farmington P42 Community Development Block Grant Commercial Rehabilitation Grant Program The City of Farmington has received funding from the Dakota County Community Development Agency (CDA) in the form of Community Development Block Grant (CDBG) funds. These funds will aid the City in supporting local businesses by assisting with financing for projects that upgrade existing commercial buildings within the community. The Dakota County CDA distributes the funds on behalf of the Federal Department of Housing and Urban Development (HUD). Projects that receive CDBG are subject to HUD requirements. The following policies and procedures have been developed for projects undertaken with CDBG dollars in the City of Farmington. These policies are subject to change as recommended by the Dakota County CDA and /or the Federal Department of HUD. Program Purpose To provide financial assistance to property owners who are making eligible improvements to eligible commercial properties within the City of Farmington. Type of Assistance CDBG Grant funding. Grant Terms & Requirements No more than one grant may be granted per property or per applicant during a funding year which currently runs from July 1" until June 30t. A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Commercial Rehabilitation Grant Program, the applicant must contribute one dollar. The amount of grants to be awarded shall be $5,000 or greater, but not to exceed $35,000. Program Objectives a. To prevent deterioration of commercial properties and discourage blight; b. Encouraging projects that correct code violations and eliminate accessibility restrictions to the extent necessary to eliminate specific conditions detrimental to public health and safety; c. To help maintain and expand the variety of options for business uses in existing commercial space within the City. 09/19/2011 P43 1 Eligible Recipients 1. The property must be located within a commercially zoned district or a district that has a commercial component. This would include the following zoning districts: B -1, B -2, B -3, B -4, SSC, Business /Commercial Flex, Mixed Use and R -T. 2. All individuals having an ownership interest in such structure or an interest as purchaser in a contract for deed must join in the application and sign the grant agreement with the City, including the contract holder. 3. Leaseholders are eligible to make application for CDBG funds. The Farmington Economic Development Authority and City Council, on a case - by -case basis, will review such applications to determine their eligibility for funding, based on the length of the lease on the property and length of time the business has operated in Farmington. The property owner must join in the application and comply with Program requirements. 4. Projects that would result in permanent displacement of either residential or business tenants will not be financed with CDBG program funds. Any temporary displacement of tenants resulting from project activities shall be the responsibility of the property owner. Tenants shall be fully informed of the project plans, and the expected impact on them, and shall receive a Notice of Nondisplacement or Displacement, as appropriate, prior to the start of rehabilitation. Property owners will be required to provide relocation assistance to tenants as required under the Uniform Relocation and Real Property Acquisition Policies Act of 1970. S No member of the governing body of the locality, or official, employee, or agent of the local government who exercises policy, decision - making function or responsibilities, including members of the Economic Development Authority (EDA), Planning Commission and Farmington City Council, in connection with the planning and implementation of the Commercial Rehabilitation Grant Program shall directly or indirectly benefit from this program. This prohibition shall continue for one (1) year after an individual's relationship with the local government ends. Any potential conflicts of interest under Minnesota Statues 412.311 and 471.87- 471.89 or Federal Regulations 24 CFR, Part 570, Uniform Administration Requirements, shall be evaluated on the basis of a legal opinion to be requested from the Farmington City Attorney. 6. Ineligible project costs include but are not limited to interior remodeling improvements, furniture, financing fees, business or operating costs, equipment, removable fixtures and building acquisition costs. Costs incurred prior to the application date are not eligible for program funding, 7. Eligible projects must comply with Federal Anti- Pirating Regulations. Any assisted business relocating to the City of Farmington must not relocate more than twenty -five jobs from any other labor market area or 0.01% ofjobs in the Labor Market Area, unless forced to relocate by an action under the Uniform Relocation Act. Farmington is part of the Minneapolis -St. Paul Metropolitan Statistical Area Labor Market Area. 09/19/2011 P44 2 Program Definitions Program Administrator The Program Administrator shall be the Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123, Phone (651) 675 -4400. Staff shall work with the Project Coordinator in administration of all aspects of the Program. Applicant Any person seeking to obtain assistance under the terms of this Program. Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished. Project Coordinator The Project Coordinator for the Program shall be an employee of the City of Farmington and shall provide assistance and management relating to improvement activities. The Project Coordinator is responsible for program marketing, application intake, scheduling of inspections, preparation of contracts and grant documents, and processing of payment requests. The Project Coordinator serves as the contact person for rehabilitation from application to project close -out and shall be available during regular business hours. Target Area Locations that are in commercial zoning districts or districts with a commercial component, including: B -1, B -2, B -3, B -4, SSC, Business /Commercial Flex, Mixed Use, and R T. Eligible Improvements: Facade improvements, corrections of code violations, code improvements and correction of handicap accessibility issues to the extent necessary to eliminate specific conditions detrimental to public health and safety. Special Conditions Contractors: All project work undertaken with CDBG funds must be completed by bona fide contractors who are licensed (as applicable) and provide proof of insurance. Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review will follow the procedures outlined in the handbook for Historic Preservation in Farmington. Eligible "historic properties" are those which have been designated or determined eligible for designation as Farmington Heritage Landmarks; within or immediately adjacent to .09/19/2011 P45 the boundaries of a historic district; or listed on the National Register of Historic Places. The City will work in conjunction with the State Historic Preservation Office to implement Federal preservation guidelines as they relate to eligibility and certification of work. If the building or the unit was originally built prior to 1950, the property will be evaluated for historical significance by the Historic Preservation Commission (HPC) using the eligibility criteria in the Farmington City Code. If it has been determined that the property is eligible for Farmington Heritage Landmark Designation, a review of the proposed rehabilitation work is necessary, and the work must be in conformance with the Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings. Once work is approved by the Historic Preservation Commission and applicable preservation standards have been met, a Certificate of Appropriateness will be issued by the HPC. Davis -Bacon Wage Rates: All contracts in excess of $2,000 that will be funded through the CDBG program require compliance with the Federal Labor Standards Provisions of the Davis -Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by the U.S. Department of Labor. Appropriate wage information must be included in the bid selections and contract documents. The Project Coordinator must approve all payrolls prior to the release of funds. Fair Housing & Equal Opportunity The City of Farmington and the Project Coordinator will work affirmatively to ensure that all persons, regardless of race, color, creed, national origin, sex, religion, marital status, age, handicap, familial status or reliance on public assistance will be treated fairly and equally for purposes of participation in the Program. Access to program information and materials will not be denied to any person for any reason. The City will encourage the participation of women and minority -owned businesses and local businesses and suppliers who meet Section 3 Criteria. Lead Based Paint The program will conform to the requirements of the Residential Lead Based Paint Hazard Reduction Act of 1992 for any assisted property that contains residential dwelling units. All program applicants must provide notification of the hazards of lead based paint to impacted tenants. The Building Official shall inspect for defective paint surfaces at the time the property is being inspected for code compliance. All defective surfaces will be corrected in accordance with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices. Additionally, contracts for rehabilitation work will include language explicitly prohibiting the use of lead based paint. Data Privacy All information provided by applicants under the Commercial Rehabilitation Grant Program shall be maintained in accordance with the Minnesota Data Practices Act and the City's Subrecipient Agreement with the Dakota County CDA. 09/19/2011 P46 4 Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon funds availability. Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved. Prior to project approval, the following will be ascertained: a. Title verification; b. All real estate taxes and any City fees or charges are current; c. All individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2. The extent to which the project meets the program objectives; 3. The degree of the project's overall impact on the surrounding area. 4. An environmental review of the property shall be conducted by the CDA. Allow 60 days for the completion of the environmental review. 5. Property details for properties older than 50 years will be submitted to the State Historic Preservation Officer (SHPO) by the CDA for determination of the property's historical significance. If necessary, applications competing for limited funds may be selected based upon these criteria. Projects that are not financially feasible within the constraints of available funding will be eliminated from consideration. Property Inspections Upon determination that a property owner applying for rehabilitation assistance is eligible based on the program guidelines, the Building Official shall conduct an inspection of the property to determine the corrective actions necessary for the property to conform to City of Farmington building code standards. Scope of Work The Scope of Work will have two (2) components: 1. Upon completion of the initial inspection, the Building Official shall prepare a report indicating the work necessary to bring the property into compliance with Farmington building codes inclusive of the Minnesota Energy Efficiency Standards. In addition, the Project Coordinator will complete the CDBG Slum & Blight for Spot Basis National Objective Form. Both reports will be used for the project to satisfy the intent of the Program and shall be included as a part of the Scope of Work. 2. The property owner shall provide a report or elevation drawing indicating any planned improvements. This report will be reviewed by the City of Farmington and the HPC if applicable (see historic properties). 09/19/2011 P47 Project Approval The final application will be approved by the Farmington City Council; following review by City of Farmington staff and recommendation by the EDA. Improvements approved for CDBG funding will be based on the severity of the correction needed and the ability of the applicant to complete the project with CDBG funds and private funds. The Dakota County CDA will determine final approval. Verification of availability of private funds will be required before .final approval of the project. Competitive Bidding A minimum of three (3) competitive bids must be solicited and two (2) competitive bids must be obtained for each improvement project the applicant proposes for CDBG funding. Applicants may use any contractor they choose, as long as the contractor meets the requirements listed below. All contractors must provide a Certificate of Insurance Coverage. Contractors must also certify that they will comply with the requirements of the Davis -Bacon Act. These rates will be provided to the applicant as a part of the contractor's instructions. Awarding Contracts The contract will be between the applicant and the contractor. The contract will be awarded to the lowest bid unless one (1) of the following circumstances occur: 1. The bid is determined to be unrealistically low and the contractor agrees to withdraw the bid; 2. The contractor has failed to follow the procedures as outlined in the instructions to the bidders; 3. The owner does not want the low -bid contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. 4. There appears to be collusion between two (2) or more contractors, in which case, all bids in the questionable trade category will be thrown out and different contractors will be solicited for bids; and 5. The contractor fails to bid according to the specifications, and it proves impossible to compare that contractor's bid with the other bids received. Approval by the Economic Development Authority (EDA) and City Council Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA. Upon EDA approval, the item will be forwarded to the City Council for final approval. If approved by the City Council, a Grant Agreement will be signed by the applicant and a designated City official. This Agreement will outline the terms and conditions of the project, including the City's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed A preconstruction conference will be held with the Program Coordinator, the Building Official, the applicant and contractors and subcontractors to ensure awareness and compliance with Davis -Bacon requirements and any other 09/19/2011 P48 requirements necessary to begin the project. A notice to proceed will be issued after the preconstruction conference. The contractor will normally have one (1) year in which to complete the awarded contract. If construction work does not begin within 90 days of the award of contract the Grant Agreement is null and void: however the applicant may apply for one extension if necessary. The length of the extension will be deter nined on a case-by-case basis. Change Orders All change orders to the current contract require the approval of the Project Coordinator as well as the signatures of the owner and contractor. Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the owner and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable State law. CDBG funds shall not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Farmington, the Farmington EDA, and the Dakota County CDA and their respective officers, employees, and officials from any damages or liability arising from, or occurring as a result of, the activities funded through this Program. CDBG Payment All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the owner and the City of Farmington. Payments will be made only after all code improvements and exterior work have been completed according to the authorized scope of work, and have been accepted by the owner. Funds will be released once all improvements are complete to the satisfaction of the City Building Official and once title ownership, Davis -Bacon wage payments and other requirements are satisfied with the CDA and the City. The Building Official and City staff will inspect the final project, and a Certificate of Occupancy (CO) or a Temporary Certificate of Occupancy (TCO) will be issued by the Building Inspections Division. The CO or TCO is required before the CDA releases funds. Payment may be made directly to the contractor or in reimbursement to the owner, upon presentation of paid receipts for approved work. The following must be presented to the Project Coordinator in order to process payment: 1. Billing Statement /Paid Receipt 2. Sworn Contractor's Statement 3. Completion Certificate 4. Weekly Payroll Reports 09/1912011 7 P49 Private Financing Applicants are responsible for all costs incurred as a result of not accepting the lowest bid, and costs above and beyond the availability of CDBG funds as outlined in the Program. Applicants shall contact a lending institution of their choice to arrange financing for their portion of the project. Applicants should request a letter of credit or other suitable documentation from the lending institution to prove that private funds have been committed. This letter is to be submitted with the completed application. If an applicant is not using a lending institution, other evidence of committed funds must be presented at the time of application. Escrow The property -owner may be requested to establish an escrow account or other private account for deposit of the private funds that will be used to complete the improvement project. The CDBG funds shall be reserved on the Owner's behalf by the Dakota County CDA, but shall be drawn from the U.S. Treasury only when actually needed for disbursement to contractors or vendors, or in reimbursement to the Owner. Appeals Process Appeals concerning eligibility for the Commercial Rehabilitation Grant Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The Coordinator will contact the applicant and attempt to rectify any concerns. A written response will be made within fifteen (15) days. 09/19/2011 P50 8 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 • Fax 651.280.6899 www.cifarmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: July Director's Report DATE: July 28, 2014 INTRODUCTION/DISCUSSION Valmont Expansion Valmont has submitted plans for a 12,030 square foot warehouse addition. This is great news to have one of Farmington's top employers continue to grow and invest in the community. Building Permit Reports Please find attached the monthly building permit report provided by the Planning Manager. Permit activity is slightly behind last year, but continuing at a steady pace. A more detailed quarterly report provided by the Building Official is also included. This was received by the City Council at their July 21st meeting. Ribbon Cutting On Friday, July 18`h Mayor Larson, EDA Member Jolley, staff, and other members of the community joined together for a ribbon cutting ceremony at the MN Hindu Milan Mandir location at 501 Walnut Street. Dakota County CDA Status Report The Dakota County CDA provides quarterly updates on the use of affordable housing and community development programs throughout Dakota County. Attached is the Farmington report along with a County- wide report. 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. Supplemental Information Attached are a few articles and clippings providing regional and statewide updates. The Economic Development Association of Minnesota regularly provides its members with legislative updates — attached is the 2014 Legislative Session Wrap -up report. Also attached is a mid -year update from Greater MSP on their activities and projects they've participated in around the Metro. P51 ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics. P52 0 O) 0 E (0 1(. 0 >. U 0 w 0 O0 C 7 m 0 0 cd m n sr N n N 1() Ui 0 CO CO N r U) m n n 0 N 0) ry N CO N C) .5 N N N N N M (V N M M N N 0 .0 0 N M O N N O N O N O N 0) N m O 0 N n 00 N O N U) N `•P N M N N N O N O O N P- N N n 0) U) 0) • CO (O «0) 0r (00 n(r) r 00 U) v n (0 0 n 000 U) (0.4 (Ovr nvrM( M40' r 00 eM- C V n v Cr, N n 01 0) M NMsr U)N v- v- P O) 0 CO M NN U) 000'- U) N N V N r 1N.n -c C0(0 sr O M 0CV a) O M 0 M O N N r r r N r r,- r 0(0 M N 0.) rt. N �d'O)U] NN O ▪ N M (0 `sr et CV N (O O N U) 0 0 r C) O M N 0 n (V r N d' M M V U) 0 N O M n V CO NN +) () N N N (0 v- s} (O .t 14)) d' • OV' 0n00 U) 00 N N U) M U) M N O r CO CO 4 ([) 0) CO r V' U) N CO O N (0 U) N .a s n o m E v 2 is E) - A C T m 4-, 0 > U Ti -` 5 u- 2 Q 2 -5 - 5i < C O 0 Z 0 1-- P53 C:\ Users\ aklenbergeMppData \Local\Microsoft\windows \Temporary Internet Files\ Content .Outlook \RVZTOXEJ \Building Permit Comparison current(use this one) (2) MD n co O) O r N M sr O O O O O O O O O O O O O CV 04 CV CV 01 CV CV CV �N f Ifffli i f III 1� pi I 1 II, i. fl' iI O c0ON-GOO14)'`i' 0) NOO panssi spuued ;o aagwnN P53 C:\ Users\ aklenbergeMppData \Local\Microsoft\windows \Temporary Internet Files\ Content .Outlook \RVZTOXEJ \Building Permit Comparison current(use this one) (2) CO V4 1- 10 t(0 r0 ) -(0 iA O t0 `aic�i.e�rrr C 7 Ntti1 82r2V. m 8VC000 O 1O Pr Cp Cb0 GO u700)o er - N CO O M 00 OD t 0 CO M t 0 O CO ti m C4 0 00 M CO t r. CO W N.- tr0 0) CO KN) t Nt ) N007�0 CO V 0)110 r- <N- X000`.0) N r r N r n y-0000 aNO CY 1r WM�e� -rON �f-r 7.00 03 El � C7) 4) lfi N Ps CO CO O) 0000000pp0CCC0 NS7d' N N N N N N C44 C N N N N N N N P54 TO: FROM: SUBJECT: DATE: City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us Mayor, Councilmembers and City Administrator Ken Lewis, Building Official Second Quarter 2014 New Construction and Population Estimates July 21, 2014 INTRODUCTION The following report summarizes the new construction permits issued during the second quarter of 2014, building permit totals, and the population estimate. DISCUSSION Second Quarter Building Permit Information: During the second quarter of the 2014 building construction season (April 1st through June 30th), the City issued 31 new single - family detached housing permits. 1 permit was issued for a pavilion for the Christian Life Church. The average building valuation of the single- family homes during the second quarter of 2014 was $199,526, down from $203,290 during the first quarter of 2014. The Christian Life Church pavilion was evaluated at $64,000. (Note that the valuation averages do not represent the average sale price or average market value of the homes in question, since they do not include the value of the lot or any amenities added to the home that are not part of the building code formula). Year -End Population Estimate: At the beginning of 2003, City staff decided that each quarterly building permit report should also include an updated population estimate for the City of Farmington. After discussing several methods of calculating population, a decision was made to base our population estimates on Certificates of Occupancy rather than upon building permits. Building permit activity is not a "real time" reflection of actual population, given the "lag tune" between the issuance of the permit and the actual occupancy of the dwelling unit (i.e., the time required to construct, market and sell the home). Accordingly, staff started with the City population as of April 1, 2000, (as determined by the U.S. Census Bureau) and then determined the number of Certificates of Occupancy (C.O.'s) issued by the City since that date. The number of C.O.'s is multiplied by 2.95, which was (according to the 2010 Census) the average number of occupants per Farmington dwelling unit. The resulting calculations are as follows: 21,086 2010 Census population estimate + 472 = 160 certificates of occupancies issued from the period 4/1/10 to 12/31/11 X 2.95 21,558 Estimated population as of December 31, 2011 + 27 = 9 certificates of occupancies issued from the period 1/1/12 to 3/31/12 X 2.95 21,585 Estimated population as of March 31, 2012 + 130 = 44 certificates of occupancies issued from the period 4/1/12 to 6/30/12 X 2.95 21,715 Estimated population as of June 30, 2012 + 44 = 15 certificates of occupancies issued from the period 7/1/12 to 9/30/12 X 2.95 21,759 Estimated population as of September 30, 2012 + 47 = 16 certificates of occupancies issued from the period of 10/1/12 to 12/31/12 X 2.95 21,806 Estimated population as of December 31, 2012 P55 + 47 = 16 certificates of occupancies issued from the period of 1/1/13 to 3/31/13 X 2.95. 21,853 Estimated population as of March 31, 2013 + 62 =21 certificates of occupancies issued from the period of 4/1/13 to 6/30/13 X 2.95 21,915 Estimated population as of June 30, 2013 + 109 = 37 certificates of occupancies issued from the period of 7/1/13 to 9/30/13 X 2.95 22,024 Estimated population as of September 30, 2013 + 130 = 44 certificates of occupancies issued from the period of 10/10/13 to 12/31/13 X 2.95 22,154 Estimated population as of December 31, 2013 + 77 = 26 certificates of occupancies issued from the period of 1/1/14 to 3/31/14 X 2.95 22,231 Estimated population as of 31, 2014 + 62 = 21 certificates of occupancies issued from the period of 4/1/14 to 6/30/14 X 2.95 22,293 Estimated population as of June 30, 2014 BUDGET IMPACT N/A ACTION REOUESTED This item is informational in nature. No action is required. ATTACHMENTS: Type 0 Backup Material P56 Description Second Quarter Report QUARTERLY BUILDING PERMITS New Public/ InstitUtionaUOther r o N O C : 0 0 0 0 0 O O O r 0 0 0 C 0 Q O O CD O 0 0 0 r Q 0 0 r O T- New Industrial Permits Issued O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O New Commercial Permits Issued O C7 O r Mr O NNv- 0C1 00000 QOO 00 CD r- -O N O Or c-0 CD CD r 0c- CD CD O Total Residential Units r. lf7 31 23 0 r 6Z I L 12 34 74 `'o 11 34 24 77 '0 C) 0 0 N r' CA 0 r C 004 85 35 12 144 14 O N O CD 20 22 123 N 4) N t.7 New Rental Housing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O 0 0 0 0 0 O O C O O 0 0 0 0 0 O O O New Townhome /Multi- Family Units 25 24 10 14 h O r C Nom- 0 0 0 0 0 O C 0 0 0 0 N O ONj 0 0 0 0 0 0 0 0 0 O 0 0 0 New Duplex Units O O O 00 O .,` 00.1- 0 0 0 00 404040040 00000 0 00 0 0 00 0 0 0 0 0 O New SF Units 0 0- r^ N - N N � 7 I 10 O CD CJ O � 11 34 24 77 35 YJ G) 0) r- m N G) r r- N ' N 7 Dd. N- r- - 0 r co N r O O N C] C: 22 123 - (V CJ N L7 a CG CJ 27 r N CV 3rd 4th 2007 Total 1st Qtr 2nd 3rd 4th 3 Total 1st Qtr 2nd 3rd 4th' 2000 Total lot Qrt '41h 2010 Total 1st Qrt 2nd 3rd 4th 2011 Total I 1st Qrt J 2nd 3rd 4th 2012 Total 1st Qrt 14th 2013 Total 0 CD .c-- V N 4th 2014 Total } t� CD O N Q1 7g F- CO O O N 0 1'j F- O) O 0 N O r 0) 0 N N Fes- U r g o N 0 Tii 0 N 0 N O , ti C+) O N U z, F-- ,J- o N a) OD H P57 ICE m a 0 Permits Issued for Existing Homes N M NI. o 0 0 0 0 0 • 0 0 0 0 • C7 O • N u • 0 0 CO 0 c.1 0 0 0 to oo T r s ;iuuad , t juow P58 0 m Of D. Accuinulated Total N 0 0 2 a) N W 0 0. a d O .0 oO a) 0 r _N M et O O r r 0 0 O 0 0 0 0 (■ N N CV V4 CV N 11 1iI s;1wuad ie;ol pa}einuinooy P59 U N Q - 0 Z _ 0 0. - N — rn c _ 3 st w LL i 0 O 0 Monthly Inspections CO 0 0 r N C) '• o 0 O 0 0 0 -0O N N N N N N N • :Et • • © ■ O O 0 0 (0 to O O O 0 0 0 NY m N syo! padsuI A(y ;uojj P60 O 0 0 a) 0 > 0 Z 0 U 0 0 U) to > w 0 0 T C6 Q 0 LL CU 0 U Q N 7 co E 0 Annual Inspections O rn O N M <t O O N N N N N N N II1 1 1 1., 1. 1 1 �1 1 1 1 .1 1 1 1 co co D 0 0 to L') 74' 0 0 0 0 th f E O 0 0 0 0 0 0 ID 0 .c) N N suol oadsui'e;ol P61 0 • 0 ID r 0 0 0 0 0 _a z _ U o • — 7 CCI (3 0 C -3 0 L C O Monthly Plan Revi ca 0) o r N co O O r r N •N N N N N N i8 1 : 1 1 8 \4d\4�s \d4dd' i`hd'"sR F.Z\ t4 \ ►1\\\ \Sd4\`adey X11:\ � a @ti�S'�r_�S`1444 \4 \1h:,t�ai'L•S� :a��.tttid�stati�d�. dt�\1 \�d� \mod \dd�aaw�d�.� r .\1�►\.1 t7l7.�a1.`� \1.'tia1.a14d\ >T. 44�a44\ t O O O O co 1Y co Pe*eina)J sueld P62 0 O V 0 Q O N 2 a .0 m IL +-- 2008 2009 . - -- -2010 - -- -2011 - 2012 2013 --.- 2014 a O C) 1 O O .O O O LO 0 US) M N N T pannainaa sued P63 0 0 CDA 0 Dakota County Dakou, CoaMrataprllanr Agony att.t4, t�P.�eso/:f' Farmington • Quarter 2, 2014 Statistics through June 30, 2014 Development -Based Housing Programs CDA Housing Programs Project Based Housing Choice Vouchers Other Affordable Housing Programs Total Development -Based Housing Units end of Quarter 1 as of April 30 Elderly/ Youth / Elderly/ Youth/ Disabled Family Disabled Family 66 51 66 51 60 0 60 0 37 76 37 76 as of May 31 asol June 30 Elderly/ Youth/ Elderly/ Youth/ Disabled Family Disabled Family 66 51 66 51 60 0 60 37 76 37 0 76 ., Previous Quarter 0 0 0 163 127 163 127 163 127 163 127 0 Tenant -Based Housing Programs Tenant Based Housing Choice Vouchers Portable Incoming Vouchers (HCV) Other Rental Housing Subsidy Programs Total Tenant -Based Housing Vouchers Tenant -based program vouchers maybe used byresldents or development -based housing. Elderly/ Disabled Youth/ Elderly/ Youth/ Family Disabled Family Elderly/ Youth/ Eldery/ Youth/ Disabled family Disabled Family Quarter 17 16 18 15 0 2 0 1 1 1 1 1 18 16 17 0 1 0 1 1 I 16 1 1 0 •1 0 18 19 19 17 19 18 18 18 -1 Housing Improvement Programs Rehab & Improvement Loans Closed Weatherization Projects Completed Quarter 1 Quarter 2 1 3 0 1 Quarter 3 Quarter 4 2014 YID 4 1 Weatherization Housing Rehab & Improvement 0 0.5 1.5 2 2.5 3 3.5 • First Time Homebuyer Programs Quarter 1 Quarter2 Quarter3 First Mortgage Loans & Downpayment 0 3 Mortgage Credit Certificate Requested 0 3 45 Quarter4 2014YTD 3 3 3.5 3 2.5 2 1.5 0.5 0 0(066ed;4 66 erg ,00e )s° .o64�o•Oe ••04 �,o6 E r See` 0 ,dos 00� -First Mortgage Loans - Mortgage Credll Certificate Home Foreclosure Quarter 1 Quarter2 Quarter3 Quarter4 Sheriff Sales 15 14 Notice of Pendancy 27 19 2014 Y1D 1 2013 Total 29 1 70 46 112 18 16 14 12 10 8 6 4 2 0 6A 6\ tcr ` �o.A �oee �3A od �d e` od So O -2014 Sheriff Soles •2014 Notice of Pendency ■•••••••20l3 Sheriff Sales P64 CDA Properties In Farmington Senior Housing Developments: Vermilion River Crossing • 66 units Workforce Housing Developments: Twin Ponds Townhomes • 51 units Scattered Sile Public Housing 7 units Other Affodoble Housing In Farmington Project Based Vouchers: Spruce Place • 60 senior units FMHA: Red Oak Manor • 37 seNor units Westview Apartments • 60 units Non -CDA Managed fax Credit: Farmington Family Townhomes • 28 affordable family units of 32 total units Farmington Townhomes • 16 units Program slorkticsa -c available upon request. 1228 Town Centro DrNe Eagan, MN 55123 651- 675 -4400 CDA www.dakotacda.org Dakota County 1228 To'.vfl Centre Drive I Eagan, MN 65123 Community Development PHONE 651-675-4400 I Toc/rry 711 Agency www.dakotacda.org CDA MEMO July 17, 2014 TO: CDA Board of Commissioners, City Administrators & Managers Dakota County Administrator and Physical Development Director FROM: Mark S. Ulfers, Executive Director RE: Status Report - Quarter 2, 2014 This Status Report provides summary information on the use of affordable housing and community development programs in Dakota County during the second quarter of 2014. The Status Report will reflect statistics for the quarter only and not the life of the program. As a reference tool, the appendix includes program explanations. In addition to the traditional Home Stretch course, there is also an online course called Framework that prospective homebuyers are able to complete in lieu of attending a course in person. What we are finding is: 1. People do like the option to take online education, and 2. People may select this option instead of the traditional Home Stretch course. The CDA is able to track the number of participants who take the Framework course through the referral Zink on the CDA's website. For FYE2014, here are the number of households that have taken the Home Stretch and Framework homebuyer education courses through the CDA: FYE2014 Home Stretch Framework July 13 6 August 15 4 September 33 4 October 8 1 November 17 4 December 0 3 January 15 1 February 11 0 March 39 6 April 17 1 May 15 5 June 29 1 TOTAL 212 36 In addition, participants may also take Framework through other referral links from other agencies or the Minnesota Homeownership Center and those numbers are not reflected here. P65 �� Agcncy County C nu.w *bs oc,orup -n.•nt 5rei �cncy CDA Dakota County • Quarter 2, 2014 Statistics through June 30, 2014 .,t Development -Based Housing Programs end onQuader 1 Elderly/ Youth/ Disabled Family as of April 30 Elderly/ Youth/ Disabled Family as of May 31 Elderly/ Youth/ Disabled Family as of June 30 Elderly/ Youth/ Disabled Family '/_ Previous Quarter _.p, + CDA Housing Programs Project Based Housing Choice Vouchers 1.603 183 718 257 1,603 183 718 257 1,603 183 718 257 1.603 183 718 257 0 0 J Other Affordable Housing Programs 771 1,257 771 1,257 772 1,257 770 1,257 -1 Total Development -Based Housing Units 2,557 2,232 2,557 2,232 2,558 2,232 2,556 2,232 -1 `j Elderly/ Youth/ Elderly/ Youth / Elderly/ Youth/ Elderly/ Youth/ ‘,4o Tenant -Based Housing Programs Disabled Family Disabled Family Disabled Family Disabled Family Quarter Tenant Based Housing Choice Vouchers 1,189 1,005 1,191 1,010 1,202 1,017 1,205 1,019 30 (.1,:$e Portable Incoming Vouchers (HCV) 145 292 139 275 135 278 137 283 •17 Portable Outgoing Vouchers (HCV & FUP) 216 221 220 219 3 Other Rental Housing Subsidy Programs 54 138 50 138 49 140 47 144 -1 TotalTenant•Based Housing Vouchers 1,388 1,651 1,380 1,644 1,386 1,655 1,389 1,665 15 Tenant -based program vouchers may be used by residents of development -bused housing. Housing Improvement Programs Rehab & Improvement loans Closed Weotherization Projects Completed Quarter 1 19 25 Quarter 2 18 24 Quarter3 Quarter 4 2014 YTD 37 49 First Time Homebuyer Programs • iming Rehab L improvement 1•WeolMdsoRan - irbrning Rehab funds Spent Quarter1 Quarter2 Quarter3 Quarter 2014YTD First Mortgage Loans 11 Down Payment Assistance Loons 11 Mortgage Credit Certificotes 4 Pre - Purchase Counseting 27 Home Stretch Homebuyer Education 65 45 40 35 30 25 20 15 10 5 SeQ ?o tie 17 17 11 31 61 28 28 15 58 126 First Mortgage Loons ••••Mortgage Credl Certificate -Pre- Purchase Appointments -Home Stretch Course Graph represents monthly data. Home Foreclosure Sheriff Sales Notice of Pendency Quarter Quarter 179 179 304 271 Quarter 3 Quorter 4 2014 Y10 2013 Total 358 575 925 1,496 160 140 120 100 60 60 40 20 0 -2014 Sheriff Soles 2014 Notice of Pendency =2013 Sheriff Sales off" P66 CDA Property Portfolio Workforce Housing 277 Youth Supportive Housing 1% CDA Properties include: • 26 Senior Housing Developments • 21 Workforce Housing Developments • 1 Youth Supportive Housing Development • 323 units Scattered Site Ptblic Housing Assisted Housing Includes: Development -Based Housing Programs • CDA Senior Housing • CDA Workforce Housing • CDA Youth Supportive Housing • Section 8 Housing Choice Vouchers • 202 Housing • 811 Housing • 236 Housing • Low Rent Housing • Non -CDA Bond Financed Housing • Non -CDA Tax Credit Housing • FMHA Tenant -Based Housing Programs • Section 8 Housing Choice Vouchers • Shelter Plus Care • Bridges • Family Unification Program • Veteran Affairs Supportive Housing • Housing Trust Fund (SSP) • Housing Trust Fund - Homeless (SSP) n�� 1228 Town Centre Drive 1 ■ 1►1 Eagan MN 55123 651 -675 -4401 CDA www.dakotacda.org Appendix 0.4;sta 7° Development Based Housing Programs Development Based Housing Programs are housing sites where the eligible subsidy is tied to the site and the units remain affordable for the duration of the funding contract. The site is made affordable usually through public funding for construction along with an ongoing operating subsidy. Units may target special needs while others may be general occupancy units. Development Based Housing is listed separately at the bottom of each city's report. Development Based Housing Programs Include: CDA Senior Housing Program provides one- and two- bedroom rental apartment units for persons 55 years of age and older. The CDA issues tax exempt bonds, credit enhanced with a general obligation pledge from Dakota County and has created a common bond fund. Under this financing structure, rental revenue from all of the buildings is pooled to pay to expenses and debt service for all the buildings. About 72% of the debt service on the bonds Is paid from the supplemental revenues, including tax increment revenue and the CDA's property tax levy that is exclusively dedicated to senior housing. Land and public improvements are paid for in part with CDBG, HOME and other local funds. CDA Workforce Housing Program provides high quality housing at an affordable rate to meet the needs of households earning modest wages. The affordable workforce housing units are financed through a the CDA's Family Housing Partnership Program, which was developed as a public /private limited partnership to syndicate low income housing tax credits and raise equity from the private sector for the development's construction. Financing packages also include below market loans and grants from public, private and non -profit sources. CDA Youth Supportive Housing Program is a supportive housing development that provides 24 units of affordable, safe, stable housing at Lincoln Place with services for young adults ages 18 -25 who are homeless or are at significant risk of becoming homeless. The CDA is the owner, developer and property manager of Lincoln Place. Dakota County Community Services is the sponsor of the project and serves as a referral service for youth who would be good candidates for Lincoln Place. To provide one - on-one case management at Lincoln Place, Dakota County Community Services contracted with The Link to provide advocacy, life skills training, goal setting around education, employment and overall health (chemical, mental and physical) to help residents transition to independence. Project Based Housing Choice Vouchers (Section 8) is a rental subsidy that can cover all of the units in a given housing development or a designated number of units. Rents are set at 40% of the tenant's income and are paid to the project's owner. The remainder of the rent (the subsidy amount) is paid by the federal government. Since the assistance is tied to the unit, a household who moves from the project -based unit does not have any right to continued housing assistance. However, they may be eligible for a tenant based voucher when one becomes available. These rental units are owned and operated by private owners, either for - profit or not- for- profit. Section 202 Housing units are available to elderly or handicapped residents. This program aims to expand the supply of affordable housing with supportive services for the elderly by providing capital advances to private, not- for - profit organizations to finance property acquisition, site improvement, conversion, demolition, relocation and other expenses associated with supportive housing for the elderly. Project Rental Assistance Contracts are used to cover the difference between the HUD approved operating costs per unit and the tenant's rent. Housing financed under this program may Include appropriate support services and activities such as cleaning, cooking and transportation for elderly persons who are frail or at risk of being institutionalized. Section 202 is a federally funded program. Section 811 Housing is a supportive housing program with units available to persons with disabilities. This program provides capital advances to not - for -profit sponsors to finance the development of rental housing with supportive services for persons with disabilities. The capital advance is interest free and does not have to be repaid as long as the housing remains available for very low - income persons with disabilities for at feast 40 years. The program also provides project rental assistance to cover the difference between the HUD approved operating costs per unit and the amount the resident pays. This Is a federally funded program. Section 236 Housing units are generally fixed or flat rents, meaning that they do not vary according to tenant income. P67 The government provided a large mortgage subsidy that reduced interest rates to as little as 1%. These rental units are owned and operated by private owners. Scattered Site Public Housing are rental units owned and operated by a Public Housing Agency, such as the CDA. These housing units consist of high -rise apartments, single family homes, duplexes and townhomes. Tenant income eligibility is based on 80% of area median income. Residents of public housing units pay 30% of their income for rent. Rental payments go to the public housing agency and are used for the operation and maintenance costs of the housing. Federal subsidies also assist with operating costs. In addition to scattered site units, the CDA owns Colleen Loney Manor, which is an apartment building for low -to- moderate income person who are 62 years of age and older, handicapped or disabled, near elderly (50 years or older) and single persons. South St. Paul HRA administers a scattered site public housing program located in the City of South St. Paul. Low Rent Housing are units of housing for families, seniors and disabled households, which are federally subsidized. Farmers Home Administration (FMHA) are units if housing for the elderly or families, which are federally funded. Tenant Based Housing Programs Tenant Based Housing Programs are when the eligible housing subsidy is tied to the tenant and the subsidy travels with the tenant. The housing subsidy makes up the difference between the market rate rent and the tenant's Income based payment. Tenant Based Housing Programs include: Tenant Based Housing Choke Voucher (Section 8) Program is the federal government's major program for assisting very low- income families, the elderly and the disabled to afford decent and safe housing In the private market. A household that is issued a housing voucher is responsible for fading a suitable housing unit of the household's choice where the owner agrees to rent under the program. Rental units must meet minimum standards of health and safety, as determined by the public housing authority. The CDA administers this program in Dakota County. In addition to the CDA, the South St. Paul HRA administers a Housing Choice Voucher Program for the city of South St. Paul. Tenant Based Portable Incoming Vouchers (Section 8) are Housing Choice Vouchers that are issued by a Public Housing Authority other than the CDA but are administered by the CDA because the tenant eligible for the housing subsidy moved into Dakota County. Tenant Based Portable Outgoing Vouchers (Section 8) are Housing Choice Vouchers that are issued by the CDA but are administered by another Public Housing Authority because the tenant eligible for the housing subsidy moved out of Dakota County. Shelter Plus Care is a Federally funded program that provides rental assistance to homeless persons with disabilities. The CDA administers the housing subsidy while Dakota County Social Services refers applicants and provides supportive services for program participants. This program provides intensive case management for households most at risk for chronic homelessness to help them to achieve long -term stability. Shelter Plus Care is a Federally funded program through the Department of Housing and Urban Development. Bridges serves persons with chronic and persistent mental illness. The CDA administers the housing subsidy portion of this program and Dakota County Social Services provides supportive services to help stabilize participating households. This is a temporary subsidy that "bridges" theegap between homelessness, treatment centers, institutional facilities, and permanent affordable housing. Bridges is a state funded program through a grant by the Minnesota Housing Finance Agency. Family Unification Program provides housing vouchers targeted to applicants in two categories: 1) Families for whom the lack of adequate housing is the primary reason for placement of a child in foster care, or is the cause for delays in reuniting a child with their family, and 2) Youth between the ages of 18 and 21 years who left foster care at 16 or older and who lack adequate housing. The CDA works with Dakota County Community Services to identify and connect with families and youth who might be P68 ,- -7 - ._.......... ......,_ -... ...._..0.. -r eligible for the program. Family Unification Program Is a federally funded program. Veteran Affairs Supportive Housing (VASH) is a unique partnership between the Department of Veteran Affairs and the Department of Housing and Urban Development that provides long -term case managmeent, supportive services and permanent housing support for chronically homeless Veterans. The program seeks to serve the neediest, most vulnerable homeless Veterans. A key component of the program is VA's case management services. Case management services promote housing stability and support recoveries from physical and mental illnesses and substance use disorders. These services are designed to improve the Veteran's physical and mental health and enhance the veteran's ability to live in safe and affordable housing within Dakota County. Housing Trust Fund is a State Funded program for all individuals or families who must be referred by Dakota County Supportive Housing Unit (SHU). This program is administered through the South St. Paul HRA. Housing Trust Fund (Homeless) is a State Funded program for all individuals or families who must be referred by Dakota County Supportive Housing Unit (SHU). This program is administered through the South St. Paul HRA. Housing Rehabilitation and Home Improvement Loan Program assists low and moderate income homeowners with making repairs and improvements to their homes. Funds are commonly used for roof replacement, furnace replacement, electrical and plumbing repairs, insulation and special needs improvements such as ramp and bathroom and kitchen modifications. The Housing Rehabilitation and Horne Improvement Loan Program is funded by a variety of sources including the Minnesota Housing Finance Agency (MHFA), Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME), Housing Opportunities Enhancement Program (HOPE) and CDA general fund dollars. MHFA Community Fix Up Fund (CFUF) - 75% MHFA + 25% HOME funds. State and Agency funds to help discount loan rates to rehab homes. MHFA Fix -Up Fund (Home improvement Loan) - State funds to provide low- interest loans to homeowners with income below $96,500. Max loan $35,000. MHFA Home Rehab Loan is State funded to provide no- interest loans to eligible extremely low- income homeowners (30% Area Median Income) to make homes more livable, accessible and energy efficient. Community Development Block Grant (CDBG) Loans - federally funded program for public facilities, housing, neighborhood revitalization, public services, planning and protect administration. These are home rehab loans. HOME Program Loans Is a federally funded program available for home rehabilitation, homebuyer programs, rehabilitation of rental housing, tenant based rental assistance and new construction of affordable housing. These are home rehab loans. Weatherization services are cost - effective energy efficiency measures for existing residential and multifamily housing with low - income residents. A wide variety of energy measures that encompass the building envelope, its heatingand cooling systems, its electrical systems and electricity consumption are the focus. This program is targeted to recipients of fuel assistance. it has the effect of reducing the demand for future fuel assistance by increasing energy efficiency. The Weatherization Program is administered as a joint effort between the CAP Agency and the CDA. Funding is provided to the CDA on an annual basis from the Minnesota Departrnent of Commerce. First Tirne Homebuyer Program provides low interest rate mortgages and entry cost assistance for buyers purchasing their first home In Dakota County. The CDA finances this program through the issuance of mortgage revenue bonds. The CDA partners with area mortgage lenders who originate loans directly to first time homebuyers. In conjunction with the first time homebuyer program, the CDA also offers downpayment and /or closing cost assistance. All homebuyers applying for a First Time Homebuyer Loan must complete an approved homebuyer education course before closing on their loan. P69 Mortgage Credit Certificate (MCC) Program is available to homebuyers using the First Time Homebuyer Program. It is a certificate (filed with the IRS) that allows the homeowner to use 20% of their annual mortgage interest payment as a credit toward their tax liability. It can be used throughout the life of the loan. A specified amount of the CDA's bond authority Is periodically used to assist first time homebuyers with a market rate mortgage product combined with a mortgage credit certificate. All homebuyers applying for a Mortgage Credit Certificate must complete an approved homebuyer education course before closing on their loan. Down Payment Assistance Loans are available to homebuyers using the First Time Homebuyer Program and meet the income requirements. Homebuyers can apply for downpayment assistance loans of up to $10,000. Home Stretch Homebuyer Education is a course that teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Classes are taught by CDA Housing Counselors and industry professionals such as mortgage lenders, Realtors and inspectors. Pre - Purchase Counseling Sessions are individual counseling sessions for homebuyers to meet with a trained homeownership specialist to answer questions about homeownership and review the household's financial situation to develop a plan to become a homeowner. �102P�i o +s-z Sheriff Sales are distressed public property auctions. it Is generally the last step in the foreclosure process after the homeowner has exhausted all their options to avoid defaulting on a mortgage. Once the borrower has defaulted, the lender will file suit in court to recover its loan loss, and if the court awards a judgment, the property will be scheduled to be sold at a public auction. P70 r6EFle Dakota County Community Development Agency CDA To: Dakota County Cities From: Lisa Henning Alfson Date: July 15, 2014 Re: Foreclosure Update 2014 Mid -Year Summary & Comparison The following summary contains notice of pendency and foreclosure activity for the first half (January — June) of 2014 in comparison to the same 6 -month time period from 2012 and 2013. So far in 2014, sheriff sale numbers have decreased by about 35 percent as compared to 2013. Notice of pendency filings have decreased by about 33 percent as compared to 2013. This is fairly consistent with the decrease seen from 2012 to 2013 where sheriff sales decreased by about 36 percent, and notice of pendency filings decreased by about 42 percent. Sheriff sales in Dakota County reached an all -time high in 2010 with the yearly total at 2,106. At the mid -year point in 2010, Dakota County had recorded 1,064 sheriff sales and 1,933 notices of pendency. Although notice of pendency filings can be an indicator of future sheriff sales, not all notices of pendency will result in foreclosure. P71 Notices of Pendency Sheriff Sales 2012 2013 2014 2012 2013 2014 Apple Valley 224 130 73 102 80 41 Burnsville 229 144 94 124 86 53 Eagan 201 I15 83 125 74 50 Farmington 144 69 46 61 51 29 Hastings 94 57 45 48 22 24 IGH 91 63 47 53 54 33 Lakeville 220 I 1 1 60 131 63 40 Mendota Heights 19 10 6 5 4 I Rosemount 88 55 33 44. 22 20 South St. Paul 105 67 42 67 40 28 West St. Paul 57 34 26 40 25 25 Small Cities 54 25 20 30 12 14 Total 1,526 880 575 830 533 358 So far in 2014, sheriff sale numbers have decreased by about 35 percent as compared to 2013. Notice of pendency filings have decreased by about 33 percent as compared to 2013. This is fairly consistent with the decrease seen from 2012 to 2013 where sheriff sales decreased by about 36 percent, and notice of pendency filings decreased by about 42 percent. Sheriff sales in Dakota County reached an all -time high in 2010 with the yearly total at 2,106. At the mid -year point in 2010, Dakota County had recorded 1,064 sheriff sales and 1,933 notices of pendency. Although notice of pendency filings can be an indicator of future sheriff sales, not all notices of pendency will result in foreclosure. P71 n. LIC, Dakota County ®Community Development Agency CDA Even though foreclosure activity has fallen to a level not seen since 2005/2006, mortgage delinquencies do remain a problem for Dakota County families. In this month's enews, we've included a brochure order form. We want to ensure that households are aware that free, unbiased foreclosure counseling is still available for those in need. Please help us spread the word that this service is still available! Return the brochure order form to receive free Mortgage Foreclosure Counseling brochures, or any program brochures that may benefit the populations that you work with. Dakota County Stats — June 2014 • # of Sheriff Sales in June — 56 (compared to 58 in June 2013) • Total Sheriff Sales for 2014 — 358 (compared to 533 Jan. June 2013) • # of Notices of Pendency Filed in June— 84 • # of Notices of Pendency Filed in 2014 — 575 A Notice of Pendency is filed bra mortgage company's attorney as official notification that the foreclosure process has begun. Not all of these result in Sheriff Sales. Mapping Using Dakota County GIS http://gis.co.dakota.mn.us/website/dakotanetgis/ The Dakota County Office of GIS is updating the 2014 Foreclosures and Notice of Pendency layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel or Mary Hagerman with the Office of GIS at (952) 891 -7081. If you have any concerns, please call me at (651) 675 -4467 or send me an email at Ihenning Odakotacda.state.mn.us. P72 0 E a 0 co o O Uc V. OO U O 00< Ebe O U C��oNO N OL 48 1 1- CD 44 aoC4 0% — co N-- — �' M Ln O Ln 0. N 24 M M 40 — 20 28 25 14 358 925 Lil N H ml 00 ch —. o 01 0 O 0 M O !t •O o z ' 1 Oct 51 C. N 1 Sept O M M b0 M cr1 0 ooet -, 0 M .0 O. Ln M �O .O — — CO .0 N �O t/1 N > a 0 M 00 un I� O+ C) O M d" —^ ER e4 c.41 C0 C. s. a d' 00 = 'c1' N M N O M M— M co' Cr. L. al .O as ON Lfl Ln M M O Lin N M O O N 00 •O N .r h 0. .� .a LL CO ? N M N r� CO O M M III N in y 43 rdt\ 0o 0. r . N Ln .0 O Ln Co .0 .0 ^ VN' — City Apple Valley Burnsville Eagan Farmington col 110 = Inver Grove Heights Lakeville Mendota Heights C a) oeC 1 South St. Paul West St. Paul jj U cd u) TOTAL 2013 O N 0t E` 0 O N CC F� O1.- P73 v V 0 0 N an O r4 E V s `r L Ln O .o L 0 _ =a N U cd L Q N ` L a 4'. ii j C O 1O ▪ N -u 0 2 E .n y- w C L cu N O L. .o E E Lo 7 LL C Z' 0 0 GI 0 L N C 7 0 0 Y b CI U cc D 0 E O Tj «+ D 0 0 'c E< c 00< ELIC OIC:( V N GO LL w 0 a 0 0 u 0 z M _ O N— 224 rn N 0 N ,O ON CO - — O N co ON ^ ul 40 42 `0 0` 41 yr — N N- as 0 00 46 1 VV. 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O 0 D 1-6 0 0 ct • Global Cities Initiative (FDI) • Applied Marketing HQ List • Applied Marketing Sub- Sector Drill Down List • Israel Study • Community Reports • R F I's • SRB's IJ 0 u 1■• Z 2. 2 Z FA W5 cf 9_ I 11101111111010A0(1 31W01103] PROSPER: MOMENTUM IS BUILDING d GREATER Q, N d • MEM= a) e eeeew, 0_ 0 CO Stream Global Services U co GC E � - 0 2 o (1, U Q o a CL 2c)-° a) � •- a � ® c a> > E 03 E o P89 Stream Global Services c m CO ru 0 Lancer Hospitality PROSPER: MOMENTUM IS BUILDING ct w uJ lhnnemolis 5:innl Paul i i rat Eetreymm OtvClypj tl P;i Economic Development Association of Minnesota 2014 Legislative Wrap -up Posted By Joe Flanniizan, Tuesday, May 20, 2014 Updated: Tuesday, May 20, 2014 The 2014 Legislative Session concluded on Friday, May 16 and overall it was a successful session for issues EDAM supported. As you may recall before legislators returned to St. Paul in February, much of the discussion leading up to session was focused on repealing a number of taxes from the 2013 session. Along with legislators, Governor Dayton highlighted these repeals along with the idea of an "Unsession" session as two main focuses. On top of the repeals another key focuses for 2014 were a Bonding Bill, Tax Relief and Credits and passing a Minimum Wage increase. In the end, the legislature successfully passed two strongly supported bipartisan tax bills that repealed a number of business to business taxes, provided property tax relief, extended tax credits and supported local development. Below is a summary of the various issues EDAM tracked this session and the outcomes. In the next few weeks we will be working with the legislative committee to distribute a webinar with more details around certain economic development areas. Tax Bill #1 Prior to session, an effort was forming to ask the Governor and Legislature to enact changes to the tax code, and after the budget forecast was released in February it was clear the state budget situation was healthy and these changes could happen without putting a hole in the budget. Early in the session, both the House and Senate Tax Committees worked through bills to provide about $500 million on several initiatives, including conforming to federal tax changes and repealing three sales taxes that were enacted in the 2013 legislative session. The bill, HF1777 (Lenczewski/Skoe), was passed by the Legislature at the end of March and signed into law by the Governor. The urgency on this bill was to make sure taxpayers filing their income taxes could take advantage of the federal tax conformity without doing an amended tax return. Also, the new sales tax which applied to warehousing and storage was about to go into effect, and the legislature wanted to repeal it prior to that effective date. The main items in Tax Bill #1: • The bill conforms Minnesota's individual income tax and corporate franchise tax on an ongoing basis retroactively to tax year 2013 for most federal changes enacted since April. 14, 2011— except the bill delays conformity until tax year 2014 for the increased married standard deduction and expanded dependent care credit. • The bill also repeals the sales taxes passed last year, effective retroactively; these include P91 labor for electronic and precision equipment repair, labor for commercial and industrial equipment repair, storage and warehousing, and capital equipment used in providing telecommunication and pay television services. • Raises the estate tax filing threshold from $1 million to $2 million over a period of five years. • Repeals tax on gifts made after June 30, 2013 and makes it retroactive. • $150 million placed into the state budget reserve. Tax Bill #2 With the passage of a tax bill early in session, there were still a number of tax revenue and policy items the Legislature and Governor wanted to address during this session. The Omnibus Supplemental Tax Bill, HF3167 (Lenczewski/Skoe), was passed as one of the final bills this session, and some of the items were key components to the end -of- session agreement. HF3167 includes just over $100 million in revenue changes in the way of tax relief, aids and credits, and other tax reductions. Like the first bill, the second tax bill had broad bipartisan support and came together with ease. Main items in Tax Bill #2: • A one -time boost in the property tax refund and the renters' credit. • An increase in local government aid and a fix to county program aid. An aquatic invasive species prevention aid program to counties. • A one -time supplemental agriculture homestead credit. • A number of local tax increment finance bills and local option sales taxes. • Clarification that the sales tax exemption for local governments includes joint powers entities and special taxing districts. • Clarifies the tax exemption on solar energy systems and imposes a production tax on solar. • Retroactive sales tax exemption for durable medical equipment. • Income tax credit for families with children receiving private tutoring for reading • Income tax credit for volunteer first responders. • Income tax credits for military service and for those in a combat zone. • Income of nonresidents- reciprocity. • Sales tax exemption for snowmobile clubs for trail grooming equipment. • Aid and local sales tax option to help fund the Lewis and Clark water project in southwest Minnesota. • Modifies the sales tax exemption for Greater Minnesota business expansion. • An adjustment to the taconite production tax and expenditures. • Study on North Dakota's oil production in Minnesota. • The final tax bill did not include an expanded child care tax credit, which was a priority item for Gov. Dayton. Article 6 of HF 3167 is the Local Development section. Included in the article were a number of provisions that EDAM was monitoring. Below is a quick summary of what was included. P92 • Five Year Rule- 5 to 8 years • Economic development districts- fiscal disparities option • Bloomington fiscal disparities • City of Baxter TIF • City of Eagan 'lIF • City of Edina Ilk • City of Maple Grove TIF • City of North St, Paul TIF • City of Savage TIF • Shoreview TIF Pilot Project Economic Development Supplemental Budget Along with the two tax bills a number of economic development provisions were carried in HF3172 the Omnibus Supplemental Budget bill. The bill spent $283 million from the surplus over a number of areas. Of that $283 million, DEED received a budget target of roughly $30 million. Of that amount $20 million was directed for one -time funding for broadband. The conference agreement also provided $475,000 to each of six initiative foundations for business revolving loans or other lending programs. The agreement also provided $2.2 million for the Greater Minnesota Business Development Infrastructure Program. Attached is a copy of the Jobs and Economic Development spreadsheet. Capital Investment/Bonding Bill One of the main objectives for the legislature and Governor this year was to put together a Capital Investment Bill, often called the Bonding Bill. The discussion over bonding actually started last year when a smaller bill was passed at the end of session to continue funding for the State Capitol preservation work that is being done. As part of last year's last minute deal a compromise was promised that this year's bonding bill would not be larger than $850 million. Over the last few weeks of this session there was much back and forth over this number as DFL leaders and Gov. Dayton were hoping to pass a larger bill than agreed upon as part of last session deal. But to honor the agreement and still provide funding for necessary projects, all parties agreed to spend $200 million in surplus General Fund monies on bonding, to supplement the $850 million in bonding monies. After much negotiation the lawmakers overwhelmingly approved both Capital Investment bills. In the House the bonding bill passed 92 -40, and the general fund bill passed 82 -50. In the Senate, the bills passed 47 -17 and 44 -19. DE5 & DE7 amendments to HF1068 & H2490 (bonding) Spreadsheet Some notable projects include in the two bills: • $100 million for road and bridge projects. This funding was a priority for Greater Minnesota members. • $100 million for housing projects. A lack of affordable housing in communities across P93 Greater Minnesota is cited as restricting business expansion. • $175 million for regional cultural and economic development projects, including the long- awaited funding of convention centers in Rochester, Mankato and St. Cloud. $240 million for higher education projects at the U of M and MnSCU. • $22 million for the Lewis and Clark Rural Water System in Southwest Minnesota. GOP members from this part of the state insisted upon including this funding. The project will serve communities suffering through drought. As a whole the project will cost $80 million, so the legislature is giving special taxing authority to these local communities, to help finance the total $80 million cost. DEED Unsession Bill HF2948 — The DEED Unsession Bill was introduced in early March at the direction of Gov. Dayton who had asked his administration look at all statues and remove those that were obsolete and no longer needed. In early 2014 Commissioners instructed their staff to review statues under their jurisdiction and bring fourth those that could be removed. Under the DEED bill roughly 18 subdivisions were introduced to be repealed. After a couple hearings in the House and Senate a few of the 18 were removed from the list as stakeholder and legislators had some concerns with removing them from law and local units of government and other agencies used them for structuring other programs. In the end 13 statutes were repealed when Gov. Dayton signed the bill into law last week. Below is a list of those repealed. 1. Environmental Coordination Procedures Act. 2. E- Commerce ready designations. 3. Rural policy and development center fund. 4. Minnesota Entrepreneur Resource Virtual Network (MERVN). 5. Small Business Development Center Advisory Board meetings. 6. Business license assistance exceptions. 7. Affirmative enterprise program. 8. Biomedical Innovation and Commercialization Initiative. 9. Board of Invention. 10. HIRE education loan program. 11. Healthcare and human services worker program. 12. Youthbuild advisory committee. 13. Local service unit delivery WESA: Women's Economic Security Act This session, Governor Dayton signed the Women's Economic Security Act, HF2536. The bill, referred to as WESA, is designed to break down barriers to economic progress for women. Proponents of the legislation sited that although women make up more than half of the workplace in Minnesota, they only earn 80 cents to every dollar a man is paid. Advocates also claimed that too many women continue to experience serious economic disparities, unfair gender barriers, and other discriminations in the workplace. The bill's chief author, Rep. Carly Melin (DFL- Hibbing), aims for this legislation to help strengthen working families and grow the P94 middle class by ensuring that all women will have equal opportunities for economic security. WESA's provisions include providing grants for female entrepreneurs, protecting wage disclosure, reducing the gender pay gap by increasing the enforcement of equal pay laws, increasing workplace protection for pregnant and nursing women, enhancing support for victims of violence, grant programs to encourage women to enter better - paying male - dominated fields, and providing economic security in retirement. P95 StarTribune - Print Page * StarTribune Twin Cities jobless rate is the lowest for large U.S. metro area Article by: Adam Belz and Jackie Crosby Star Tribune staff writers July 2, 2014 - 5:33 AM The Twin Cities boasts the best unemployment rate of any large metropolitan area in the United States as a wave of recent hiring boost the local economy. Job growth across a mix of industries in the Minneapolis -St. Paul area lowered the jobless rate to 4.0 percent in May, edging out Austin, Texas, and Columbus, Ohio, for the nation's lowest rate, the U.S. Department of Labor reported Tuesday. "It's fantastic news," said Katie Clark Sieben, commissioner of the Minnesota Department of Employment and Economic Development. "This is a reflection of the healthy economy and a labor force we have in the state that's very well-educated and hardworking." The economic downturn hit many other states harder than Minnesota, which has also had a forceful recovery. The unemployment rate — which does not count those who have given up looking for a job — has dropped in the Twin Cities by a full percentage point since February. "Number one, the health care economy never slacked off during the recession and then has continued to boom," said Louis Johnston, an economist at the College of St. Benedict and St. John's University. We have a big footprint in health care, both with medical devices and indirectly with UnitedHealth." Johnston also said the oil boom in North Dakota has helped the Twin Cities job market in subtle ways that aren't felt in other major cities. "We're the closest metropolitan area to the Bakken, and I think that's helped us a lot, especially in finance, insurance and logistics," he said. http://www.startribune.com/printarticlenid=26547I401 Jake Weller, 28, of White Bear Lake, works at the Mall of America expansion site in Bloomington, MN on Thursday, May 22, 2014. Caroline Yang for Star Tribune Caroline Yang for Star Tribune, Construction workers were busy at the new Vikings stadium. JOEL KOYAMA • jkoyama @startribune.com, Minnesota positives • Health care economy keeps growing • N.D. oil boom brings jobs • Big construction projects are underway • More than 70 percent of workers are in the job force Rounding out the five major metro areas with the lowest unemployment rates are Austin with a 4.1 percent rate; Columbus and Oklahoma City tied at 4.4 percent, and Boston with an unemployment rate of 4.7 percent. The figures are not seasonally adjusted and are ranked by place of residence. The report focused on unemployment numbers and didn't single out industries that are driving the changes. But a boom of construction projects in" the Minneapolis -St. Paul- Bloomington area, as the government defines it, has added nearly 10,000 jobs in the past 12 months. State economist Laura Kalambokidis noted that improvements in the metro area's unemployment picture are vital because job gains in the region influence the economic health of the state as a whole. P96 1 of 2 7/2/2014 10:23 AM StarTribune - Print Page http://www.startribune.com/printarticlenict-265471401 While the top rank is a "positive," Kalambokidis said the good news isn't limited to the Twin Cities. "Another part of the story here is that if you look at the year -over -year changes, all of the non - Minneapolis -St. Paul metro regions — Duluth, Mankato, Rochester and St. Cloud — have made improvements in the unemployment rate over the year," she said, The state, which has recouped all of the jobs lost during the recession, has the third - highest ranking of labor force participation In the nation, Sieben noted. Some 70.6 percent of workers are in the job force. In the annual rankings, the metro area has ticked up a spot every year for the last three years, starting at No. 3 in 2011. adam.belz @startribune.com 612 -673 -4405 • Twitter: @adambelz jackie.crosby@startribune.com 612- 673 -7335 2014 Star Tribune P97 2 of 2 7/212014 10:23 AM