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HomeMy WebLinkAbout06.22.15 EDA PacketAGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING June 22, 2015 6:30 PM Room 170 Todd Larson, Chair; Geraldine Jolley, Vice -Chair Douglas Bonar, Steve Wilson, Kirk Zeaman 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Meeting Minutes (5/26/15 Regular Meeting) (b) Monthly Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Economic Development Update from Dakota Electric Association (b) EDA Fund Balance Discussion (c) Upcoming EDA Items 9. DIRECTOR'S REPORT (a) June Director's Report 10. ADJOURN MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular May 26, 2015 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Jolley, Bonar, Wilson, Zeaman Members Absent: None Also Present: Adam Kienberger, Community Development Director; Jerry & Denise Ristow, Chris Kulus - FBA 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Jolley, second by Bonar to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Zeaman second by Bonar to approve the Consent Agenda as follows: a) Meeting Minutes — March 23rd Regular Meeting b) Monthly Statements APIF, Motion Carried. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Commercial Rehabilitation Grant Application —341 3rd Street — Director Kienberger stated that Town Properties LLC is requesting $35,000 for improvements to eliminate conditions detrimental to public health & safety. The grant will cover roof replacement, brick tuck pointing /repair, ADA bathroom improvements, and structural repairs. While the grant amount requested is $35,000, the applicant is providing matching funds exceeding $42,500 along with additional improvements to the building and second floor apartments. After renovations, they will open Town Sports sportswear and have two leasable apartment units on the second floor. Both city staff and CDA staff feel this request meets the requirements. The applicant is required to: • Applicant to provide a 1:1 dollar match • Competitive bidding • Davis -Bacon Wage Act (payment of prevailing wages to contractors) MOTION by Zeaman second by Jolley to recommend approval and forward to the City Council for action. APIF, Motion Carried. b) Property Acquisition and Business Expansion — Director Kienberger indicated that Seth Brittain of This Little Piggy Catering has an interest in expanding at their current location and had inquired into the vacant property adjacent to this business. The parcel in question is now in tax forfeit status and staff was requested to place a hold on the parcel for 6 months. Dakota County has assigned a sale price of $90,000 for the 2.21 acre parcel. The City would purchase the property and would sell it to This Little EDA Minutes (Regular) May 26, 2015 Page 2 Piggy Catering for the $90,000 plus related fees within 6 months. The City would retain ownership of the property during the platting and while financing issues are worked out. Jerry Ristow stated to the EDA that he was interested in this property for his auto sales business. The consensus of the EDA was to not take this risk without knowing the full building plans and financials of the company. MOTION by Jolley second by Wilson to not authorize the purchase of the tax forfeit parcel (14- 00500- 250-14) via resolution to facilitate the expansion of This Little Piggy Catering in Farmington, due to lack of information and limited timing. APIF, Motion Carried. 9. DIRECTOR'S REPORT May Director's Report Broadband study - It is anticipated a joint powers agreement will be in place sometime around September to outline roles, responsibilities, and financial participation requirements to the cities and county. - Planning Commission Work Session — The Planning Commission will be holding a work session on Wednesday, May 27th to discuss a variety of topics, several of which include possible zoning ordinance amendments to address emerging business trends. Related topics are scheduled to include: breweries/brew pubs, data centers, solar farms, and home occupations. By proactively identifying emerging business trends and reviewing existing zoning ordinances, we seek to positively impact the perception of the business climate in Farmington. - Building Permit Report - As of May 18th, a total of 19 permits have been issued for new residential construction. All 19 have been for single - family. The City's lot inventory is 190 lots. During 2014, the City issued a total of 87 single family building permits. Miscellaneous Articles — Director Kienberger noted referenced articles included in the packet. The first one discusses the debate surrounding proposed financial incentives for Amazon to locate a distribution center in Shakopee. The other two are broadband related articles that discuss the future of broadband technology and ties to economic development. Chair Larson indicated that now would be a good time to send the hotel feasibility study to other hotels. The consensus was to have the Director move forward but to continue to work with the Cobblestone Group. 10. ADJOURN MOTION by Bonar, second by Jolley to adjourn at 7:39 p.m. APIF, MOTION CARRIED. Respectfully submitted, ti Sue Miller Administrative Assistant City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: SUBJECT: DATE: Economic Development Authority Adam Kienberger, Community Development Director Meeting Minutes (5/26/15 Regular Meeting) June 22, 2015 INTRODUCTION/DISCUSSION Draft meeting minutes from the May 26, 2015 Regular EDA Meeting will be distributed at the June 22, 2015 meeting for consideration of approval. ACTION REQUESTED City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: SUBJECT: DATE: Economic Development Authority Adam Kienberger, Community Development Director Monthly Statements June 22, 2015 INTRODUCTION/DISCUSSION Please find attached the monthly bills for the EDA. ACTION REQUESTED ATTACHMENTS: Type Description © Backup Material May -June Bills 6/18/2015 10:39:53 CITY OF FARMINGTON co N O J Council Check Summary Note: Check Amount may not reflect actaul check total due to sequence of data Co Dept Div BU Description Subledger Account Description 0 3 N HRA/ECONOMIC DEVELOPMENT 02000 03 LEGAL NOTICES PUBLICATIONS U) U, Lil oi El Nr CD CO 00 m 0 N 5/21/2015 - O z C O z C 0 Supplier / Explanation C O E 137346 1553919/255871 35.96 4/09 PUB HRG NOTICE CD O) N C) CAMPBELL KNUTSON b O O 132160 5/29/2015 HRA/ECONOMIC DEVELOPMENT 02000 03 -J w W J 137268 1852- 000GAPR'15 2000 6403 61.20 APR EDA LEGAL SRVS -NON RETNR O KIENBERGER, ADAM k• M 132269 6/8/2015 HRA/ECONOMIC DEVELOPMENT MILEAGE REIMBURSEMENT HRA/ECONOMIC DEVELOPMENT TRAINING & SUBSISTANCE )n 0 1. CD C• `D MAY 06 CONFR, CELL2000 MAY 06 CONFR, CELL2000 N- N- N- ti CO 0 CO M 28.06 5/06 MILEAGE REIMB, CONFR 8.56 5/26 LUNCH REIMB, FBA N 0 M CO M City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: SUBJECT: DATE: Economic Development Authority Adam Kienberger, Community Development Director Economic Development Update from Dakota Electric Association June 22, 2015 INTRODUCTION/DISCUSSION Mark Lofthus, Economic Development Director for Dakota Electric Association, will be in attendance to provide the EDA with an economic development update. ACTION REQUESTED None. This item is intended to update the EDA on economic development trends from the perspective of Dakota Electric Association. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: SUBJECT: DATE: Economic Development Authority Adam Kienberger, Community Development Director EDA Fund Balance Discussion June 22, 2015 INTRODUCTION/DISCUSSION Just over a year ago (March 24, 2014) the EDA discussed options for utilizing its positive fund balance for economic development activities. At the time, direction was given to accumulate the funds and identify new opportunities at a future date. Attached are the minutes from that meeting for your reference. With a current fund balance of approximately $250,000 it would seem to be an appropriate time to revisit this discussion and solicit additional feedback. Currently, the EDA receives a $40,000 yearly transfer (1/12 each month) from the City General Fund. Other than investment income, this is the only way the EDA receives new funding on an annual basis. During informal discussions over the past year we have referenced the current fund balance as an "opportunity fund" for unknown projects and opportunities that may arise over the course of a given year. With that in mind, is this still the direction the EDA would like to pursue? Options can range from acquiring blighted or underutilized properties to creating revolving loan programs to investing in infrastructure (sewer /water connections, broadband, etc.). This discussion serves as a precursor to the EDA creating a new Strategic Plan for Economic Development to cover 2016 -2018. The Strategic Plan will be developed this fall and seek City Council approval by the end of the year. ACTION REQUESTED Provide staff with guidance and ideas for the EDA fund balance. ATTACHMENTS: Type o Backup Material Description March 24, 2014 EDA Meeting Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting March 24, 2014 1. CALL ORDER The meetin was called to order by Chair Larson at 6:30 p.m. Members Pre t: Larson, Bonar, Jolley, Wilson, Zeaman Members Abse None Also Present: David McKnight, City Administrator; Robin Hanson, Finance irector; Cynthia Muller, Executive Assistant 2. PLEDGE OFALLEG 3. ROLL CALL 4. APPROVE AGENDA MOTION by Wilson, second by Ze CARRIED. 5 CITIZEN COMMENTS/PRESENTATIO. to approve the Agenda. APIF, MOTION 6. CONSENT AGENDA MOTION by Zeaman, second by Wilson to approv a) Approved Meeting Minutes (2/24/14 Regular) b) Approved Bills 2/24/14 — 3/23/14 c) Received Residential Building Permit Report APIF, MOTION CARRIED. 7. PUBLIC HEARINGS S. CONTINUED BUSINESS a) Marketing Plan Update Staff mailed surveys to 173 businesses and they are due by April 4, 2 4. As of today, five have been received. Staff will summarize the comments an 'ng them to the EDA at the April meeting. The Farmington Independent will . o place an article in the newspaper regarding the survey. The survey will be th framework for the business visits which will be scheduled at the April EDA meetin for Ma visits. e Consent Agenda as follows: 9. NEW BUSINESS a) EDA Budget Update/Fund Balance Finance Director Hanson gave an overview of the current EDA budget. There are two sources of revenue for the EDA; interest on investments which is $2,000 for 2013 and a tax levy transfer of $40,000 (1/12 of this is received each month). 2 EDA Minutes (Regular) March 24, 2014 Page 2 There were $42,000 in expenditures in 2013. The majority was programming expense at $24,500. Two large expenditures for 2014 include legal services for the Vinge loan closing and $5,000 for the Open To Business participation fee for 2014. It will be up to the EDA to determine what they want to do with the programming expense dollars of just under $20,000. The balance sheet showed three years of history. In 2011 there was a $140,000 deficit in the EDA and it owed $190,000 to one of the other funds for library improvements. In 2012 there were funds budgeted to be transferred in so the EDA had enough cash to pay off the loan in full and still have some left over which resulted in a positive cash balance of $60,000. In 2013 in addition to the levy transfer, the CEEF loan was repaid in full and the EDA also received some increment tax dollars. Similar monies were received in 2011 which were also transferred to the EDA. The cash balance is $153,000 at the end of 2013. The Vinge loan was paid off in February 2014 so the EDA now has $183,000 in cash. The EDA needs to decide how to invest this, or to spend it, or offer low interest rate loans. Chair Larson asked staff and the EDA for ideas on what to do with the funds. Finance Director Hanson stated offering the funds for improvements is a one -time event and then the money is gone, The EDA could do 0% loans for three to five years so you would at least get the principle back. You could also offer 2% to 3% loans to get some interest back, It would be good to have a three to five year plan to help with budgeting. Member Jolley asked abotrt the EDA's philosophy to accumulate funds to acquire. some industrial land and to install improvements. This was a high priority for the strategic plan, She recommended accumulating funds rather than use them. If the EDA decides on a time horizon to save the funds, staff will invest them accordingly. Member Wilson noted the ongoing source of revenue is the $40,000 transfer from the tax levy. Council could increase or decrease this amount when setting the budget. Finance Director Hanson noted all EDA loans have been paid; the EDA does not owe any money. Member Bonar suggested saving the funds for the remainder of the year. We will have a new Community Development Director that will need time to adjust and we do not want to fall into a deficit again. The EDA agreed to save the funds and let them accumulate. Member Wilson noted the EDA will be meeting with the Council in May. He wanted to hear directly from them what their thoughts are on what areas we can be a component of to go along with their plans. 3 EDA Minutes (Regular) March 24, 2014 Page 3 CITY STAFF REPORTS a) Activity Update City Administrator McKnight gave an update on several items. Five applications have been received for the Community Development Director position. The position closes on March 31, 2014. met with Valmont Industries to discuss their expansion plans in Farmington. Va ': +ont will be receiving a job creation fund award from DEED. This project start- _- with Lisa Franxman and Yield Stute, representing the Dakota County Region.- Chamber, making visits to the industrial park. The award is up to $229,000. armington was the only metro city to receive this award. Valmont will bring 1► , 0 15 new jobs. Building permit ormation was included in the packet. The Sunrise Ponds replat is in process right w. It is located on Cambodia Avenue between 210th and 212th Streets. There s ne home being built in Swanson Acres. Regarding the potential h.° .-1, City Administrator McKnight spoke with the hotel developer and they are wor ' with the land owners. Assessments continue to be an issue and City Adminis or McKnight encouraged him to talk with staff Regarding CDBG money, we had geted $38,867 for commercial rehabilitation and the CDA has informed staff we be receiving $42,717. Member Wilson asked if we have a sense the amount of traffic with the Parade of Homes close to this area. City Administr.: er McKnight will contact the Builders Association and Realtors Association. here are developments in Lakeville close to the Farmington border. Mem ' , Wilson suggested keeping realtors in Farmington updated with EDA plans. Member Wilson asked if there is any concern about i g out of residential lots. Currently we have 227 lots available, which includes S - Ponds and Executive Estates. Staff does receive questions about the Se development. That area will be developed when the family is ready to develo 't. Sunrise Ponds contains 59 lots. Member Bonar stated the Seed family did rene eir PUD and in May 2016 they do have an obligation to begin the first phase of • elopment. The May work session with the Council, EDA and Planning Commis n is to talk about Vermillion River Crossing, the Seed property, industrial, and the big picture and all the pieces that fit into it. Moving forward we will n. d a common vision among all those groups to succeed. Member Wilson felt it would be helpful to know any plans the City has with regard to level of bonding or borrowing if a company wants to come here. Chair Larson stated where we do have zoning available for industrial we do not have willing sellers. He would like to ask the Planning Commission to look at the 4 EDA Minutes (Regular) March 24, 2014 Page 4 comp plan to determine if there is another area where industrial or a commerce park would fit. 11. ►JOURN OTION by Bonar, second by Jolley to adjourn at 7:08 p.m. APIF, MOTION C ED. Respectfully s 'tted, Cynthia Muller Executive Assistant 5 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: SUBJECT: DATE: Economic Development Authority Adam Kienberger, Community Development Director Upcoming EDA Items June 22, 2015 INTRODUCTION/DISCUSSION As we transition into the third quarter of the 2015 calendar year, I would like to take some time to review a few upcoming projects and initiatives with the EDA. Downtown Redevelopment Plan An RFP has been issued for the Downtown Redevelopment Plan. Responses are due to the City by 4:30 p.m. on July 6th. A copy of the RFP is attached. As a part of the process I would like to solicit a volunteer from the EDA to serve on an RFP Review Committee to help select a consultant for this project. I will also be seeking a representative from City Council, Planning Commission, and the Heritage Preservation Commission. 2016 -2018 Strategic Plan for Economic Development Strategic planning is in important component of economic development. A three -year strategic plan is a valuable tool for both elected and appointed officials, as well as staff to provide work direction and prioritization of new initiatives. I would like to recommend the EDA conduct a professionally facilitated strategic planning process in September or October so that it can be presented to City Council prior to the end of the year. We can discuss general timing, process, and availability at the meeting. 2040 Comp Plan Update 2016 and 2017 will be a very active time for Community Development staff as we begin work on Farmington's 2040 Comprehensive Plan. Land use and economic development are key components of this plan, which serves as an overall vision for the future of the community. Below is a summary provided by Planning Manager Tony Wippler: What is a Comprehensive Plan? • A document that helps to establish a vision for the community. • Reflects regional policies AND important local goals and objectives. • Serves as a compass or resource guide for the development of the community. • Every community in the 7 -county Metro Area is required to have a Comprehensive Plan The City is governed by Minnesota Statutes Chapters 462 (Municipal Planning Act) and 473 (Metropolitan Land Use Planning Act). Chapter 462 states that Cities can do Planning and sets forth a process for plan adoption and amendment (i.e., at least 1 public hearing must be held and must be approved by at least 2 /3rd vote of Council Members). Chapter 473 requires cities in the 7 -county Metro Area to have a Comprehensive Plan and to update that plan every 10 years. Chapter 473 also requires that if an official control (i.e., zoning ordinance, subdivision regulations, zoning map, etc.) is in conflict with the Comprehensive Plan as a result of an amendment to said plan the affected official controls must then be amended by the City within 9 months following approval of the Comprehensive Plan Amendment so as not to be in conflict with the Comprehensive Plan. The 10 year Comp Plan cycle is nearing and will officially start when the Metropolitan Council issues System Statements for every community in the 7- county Metro Area in September of 2015. The System Statement is a customized document for each community that informs how the community is affected by the Metropolitan Council's policy plans for regional systems and to assist in amending its Comprehensive Plan. The System Statement will include forecasts for population, households, and employees as well as provide affordable housing goals. Once system statements are issued, communities have 3 years to complete the update and have it approved by the Met Council. The updating of Farmington's Comprehensive Plan will begin in earnest the beginning of 2016. ACTION REQUESTED None. The above is provided as an update on upcoming EDA items and related activities that impact economic development. ATTACHMENTS: Type o Backup Material Description Downtown Redevelopment Plan RFP REQUEST FOR PROPOSALS (RFP) Downtown Redevelopment Plan For the City Farmington Client: City of Farmington 430 Third Street Farmington, MN 55024 RFP Deadline: July 6th, 2015 (4:30 p.m.) Study Deadline: —4-6 months to complete study Background: Farmington is located in west - central Dakota County roughly 30 minutes south of the Minneapolis - St. Paul International Airport and the Mall of America. Buffeted by both growth communities and rural townships, Farmington is in a transitional period of growth and development. Farmington currently has an estimated population of 22,051 and boasts an above average median household income. With a median age of 33.1, Farmington is demographically one of the youngest communities in Dakota County. A more detailed history of Farmington, including information on the City's Heritage Preservation Commission, can be found at http: / /www.ci.farmington.mn,us /AboutFarmington /Farmington History /Farmington History.html Study Purpose: Craft a shared vision for Downtown Farmington that illustrates unique redevelopment opportunities The City of Farmington is embarking on a planning effort that will result in a Downtown Redevelopment Plan. Several smaller redevelopment efforts and projects involving new construction or redevelopment of existing buildings have occurred in recent years. However it has been determined that without a unified vision, Downtown Farmington risks becoming increasingly irrelevant to the overall community, and less of a retail and cultural destination. Scope of Service: The proposed Redevelopment Plan at a minimum must review and make recommendations on the following topics and issues. 1. Review and make recommendations regarding the existing and use designations for the Downtown Commercial District and areas adjacent to Downtown Commercial District (see Project Area map). 2. Review and make recommendations regarding the current Zoning Ordinance requirements for the Project Area. 3. Review the current off - street and on- street parking requirements and needs for the Project Area. 4. Identify the type, scale and possible locations for additional residential, commercial and /or mixed -use projects and their preliminary market feasibility. 5. Identify future transportation improvements and /or pedestrian connections that may be needed or required to facilitate additional redevelopment. 6. Identify and recommend various financing tools and programs that could be considered to facilitate future redevelopment efforts. 7. Review the current architectural design guidelines, current streetscape design standards, signage standards and other development tools standards currently in place. The firm that is selected will be working with a Downtown Planning Task Force comprised of representatives from the City Council, Planning Commission, Economic Development Authority, Heritage Preservation Commission, Farmington Business Association, Dakota County Regional Chamber of Commerce, and Downtown business owners and residents. There will also be a requirement for several Open House /Public Meetings during the preparation of the Redevelopment Plan. The Task Force will recommend a proposed Redevelopment Plan for consideration by the Economic Development Authority, Planning Commission, Heritage Preservation Commission, and City Council. Existing Reports: The following studies, plans and reports can be reviewed and incorporated, as needed, into the Downtown Redevelopment Plan: • Information from the 2030 Farmington Comprehensive Plan Update • Farmington Zoning Map: http: / /gis.co.dakota.mn,us /maps /farm zoning,htm • City Code 10 -6 -28: DOWNTOWN COMMERCIAL OVERLAY DISTRICT DESIGN STANDARDS Proposal: A written or emailed proposal submitted to the City shall include the following information: Letter of Transmittal. Address the letter of transmittal to the address set forth on the cover page to this RFP and include, at a minimum, the following: a. Identification of the offering firm(s), including name, address, and telephone number of each firm; b. Acknowledgment of receipt of RFP addenda, if any; c. Name, title, address, telephone number, and email address of contact person during period of proposal evaluation; d. A statement to the effect that the proposal shall remain valid for a period of not less than 120 days from the date of submittal; and e. Signature of a person authorized to bind the offering firm to the terms of the proposal. Team Organization. In this section provide an organization chart showing the interrelationship of the team members and key personnel. Identify the team members' areas of responsibility. Provide subcontractors' company name, address, contact person, and telephone number. Describe your previous experience working with each subcontractor. For the purposes of this proposal, prior experience with all subcontractors is required to ensure that no major problems will occur to delay, complicate, or otherwise hamper the steady, reasonable progress of the study. Qualifications & Experience. Identify similar studies undertaken by the team within the last five (5) years. Document the team members' actual responsibility on each project. For each study, provide the client's name, address and telephone number for a contact person currently available who is familiar with the firm's performance on each study listed. The contact person should be familiar with the firm's key personnel as references may be contacted. Key Personnel. For each of the key personnel shown in the organization chart, provide a resume, and include in the project manager's resume a summary of experience with similar studies. Work Plan & Budget. The proposal should demonstrate the proposer's understanding of study goals. The proposal must include a clear description of the methods or process to be used to complete the scope of services. In addition, a project schedule should detail tasks, timelines and work products. The proposer should provide a detailed budget for the study within four (4) categories: • Data collection and compilation. • Mapping. • Findings, priorities and recommendations. • Meetings and presentations (describe type, number and location). Provide overall cost information as follows: a. professional fees including hourly rates and number of hours worked by person; b. direct expenses (equipment, supplies, etc.); c. contract labor; d. travel and lodging; and e. other as appropriate. Conflict of Interest. The proposer must identify any potential conflict of interest it may have providing the services contemplated by this RFP. Evaluation: Proposals will be evaluated on the following factors. The City has the right to reject any or all proposals without explanation. Experience of Firm(s) • The comprehensiveness, appropriateness, and quality of experience of the member firms; • Response of references; and • The presence of the appropriate disciplines. Experience of Personnel • Level of effort and participation of key personnel; • Experience, education and qualifications of key personnel with similar roles and projects; • Experience and interpersonal skills of project manager; • Demonstrated ability to successfully lead the study; and • Access /availability of project manager and key personnel. Work Plan for Scope of Services • Completeness and clarity of proposal; • Scope of work approach, timing and substance; • Understanding the study objective and work tasks; • Proposed level of detail, documentation, and back -up material; and • Ability to complete the study in a timely manner. Cost Allocation • Cost relative to proposed level of effort and products; • Allocation of resources among work tasks (including person- hours); • Ability to perform the study within budget; and • Reasonableness of costs. Other Factors • Any other factors deemed relevant by the City. Project Budget: A planning grant has been secured and matching funds identified for a study up to $40,000. Deadline: Proposals may be submitted via email or directly to the City no later than 4:30 p.m. on Monday, July 6, 2015 to: Adam Kienberger Community Development Director City of Farmington 430 Third Street Farmington, MN 55024 E -mail — akienberger@ci.farmington,mn.us The City of Farmington intends to review all proposals and execute a contract by mid - July, 2015. Further information may be obtained from Adam Kienberger at 651 -280- 6820 or by e -mail. Dakota County, MN Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed This is not a legal Map Scale document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Dakota County 1 inch = 479 feet assumes no legal responsibility for the information contained in this data. 1/14/2015 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: FROM: SUBJECT: DATE: Economic Development Authority Adam Kienberger, Community Development Director June Director's Report June 22, 2015 INTRODUCTION/DISCUSSION Midwest Dental Staff met with representatives of Midwest Dental the other week and they informed us that they have signed a lease for space in the Tamarack Ridge Shopping Center. They will be working on the build out this summer and plan to open in early fall. They are looking forward to engaging with the city and being an active member of the business community. Building Permit Report As of June 12th, a total of 25 permits have been issued for new residential construction. All 25 have been for single - family. The City's lot inventory is 184 lots. During 2014, the City issued a total of 87 single - family building permits. Miscellaneous Articles Attached are a few articles you may find of interest. The first one covers a Legislative Wrap -Up from the perspective of the Economic Development Association of Minnesota (EDAM — of which I am a member). The second article is from the Star Tribune and recaps the recent Planning Commission work session where we talked about several topics that can impact our local business climate. The third article, also via the Star Tribune, highlights shifting trends in the housing market. The fourth and final article touches on the impact of broadband on new and existing development in a community. NEXT MEETING Our next regular meeting is scheduled for Monday, July 27th ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description Backup Material June EDA Articles Adam Kienberger From: Sent: To: Subject: Follow Up Flag: Flag Status: EDAM <info @edam.org> Monday, June 15, 2015 11 :43 AM Adam Kienberger Legislative Wrap -Up Follow up Flagged EDAM Economic Develo rnert Association of Minnesota EDAM Legislative Wrap -Up Special Session Comes to an End -Jobs Bill Signed by Dayton After a hectic end to the regular session where both bodies had less than an hour to see the Jobs /Energy bill and take a vote on it, legislators were given a second chance during Friday's Special Session to act on the bill. HF 3 which passed both chambers with bipartisan support (House: 78 -47; Senate: 50 -14) appropriates roughly $509 million in the areas of economic development, jobs, unemployment and energy. In large the bill is very similar to what passed in the final minutes of regular session, just this time it was given a more time to be reviewed. While many legislators agreed that the changes made to the bill over the past few weeks on a few key items were helpful and that the bill was now better than when it was first introduced, the bill still did not go far enough to serve areas of the state or key department programs in time of a surplus. Two areas that had strong bipartisan support in highlighting missed opportunities were support for Greater MN and Broadband Development. EDAM Areas of Interest: • Broadband Development $250K each year for the Broadband Development Office; $10.5 million in 2016 for the border -to- border broadband grant fund • Broadband policy language change "Unserved areas" means areas of Minnesota in which households or businesses lack 1 Commission threshold of four megabits per second download and one megabit per second upload; as defined in section 116J.39 • Workforce Housing Establishes a Workforce Housing Development Program through DEED (new criteria to be awarded funding) — $1.37 million for FY 2016 for pilot program, $2 million each year for workforce housing grant program • MIF $15 million each year • Job Creation Fund $12.5 million each year • Contaminated Cleanup Fund $1.27 million each year • Remediation fund for contaminated site cleanup $700K each year • Business Development Competitive Grant Program $1.425 million each year • MN Jobs Skills Partnership $4.195 million each year • Article 8: Rochester- Destination Medical Center Provision giving the City of Rochester flexibility to use its local sales tax to support the Destination Medical Center economic development project • Aviation Fund $4 million loan to Duluth -based Cirrus Aircraft With special session now in the rearview mirror, many will begin to focus on next year and what was left behind in the Jobs and Energy bill. One area that we expect to be talked about a lot this summer and fall will be broadband support across the state. Leading up to the 2015 Session and the first few months there was a lot of talk and support for additional funding. Gov. Dayton was seeking $30 million and the Senate was at $100 million at one point. However in the final months of session that support fell short and with only $11 million this session, there will most likely be another bipartisan push for additional funds. We anticipate this will be a big priority for a handful of legislators right out of the gate with an election next fall. There will also be additional opportunities for EDAM to keep promoting the legislative platform as well as additional items that come up in planning later this year. 2 Farmington reconsiders local laws in hopes of luring breweries, tech businesses The city will consider changes to zoning rules and other regulations in hopes of spurring development. By Todd Nelson May 30, 2015 — 12:22am Attention brewers, beekeepers and tech -savvy types — the city of Farmington wants you. The city hopes to make itself more appealing to microbreweries, beekeeping operations, solar farms, data centers and other trendy enterprises that have been setting up shop elsewhere. In the latest effort of a continuing economic development campaign, Farmington's planning commission plans to review city codes and zoning ordinances this summer to make it easier to do business in the city. "We're looking around at other communities and seeing what they have brought in as far as taprooms and solar gardens and then looking at our ordinances and seeing what's missing," Mayor Todd Larson said. "We're trying to be prepared for what's coming and be proactive rather than reactive." Examining the city laws is one component of an overall economic development strategy, said Adam Kienberger, Farmington's community development director. "We're taking a look at how we are positioning ourselves to be more attractive to new and emerging businesses as they're looking at locating in this area," Kienberger said. The results of a recent 900 - person community survey shows support for the approach, Larson said. One in five people surveyed said "lack of retail" or "lack of jobs" was one of the most serious issues facing the city. "The residents of Farmington are dying to spend their money in Farmington," Larson said. "So the more we can attract businesses, the happier the residents are going to be. And we're doing our best to attract businesses. I don't know what it's going to take but we're doing everything we can." But the survey also suggested that some residents might want a measured approach to development: 21 percent identified "too much growth" as among the city's most serious issues. Farmington's "small -town feel" emerged as a key value in the survey, with 32 percent of residents saying it's what they like most. Sixty -nine percent of residents who responded to the survey said they would support or strongly support the city offering incentives to attract certain businesses. But they were split on whether they would be willing to pay additional property taxes to finance development. Overall, 98 percent of residents rated quality of life in Farmington as excellent or good. And a representative from Morris Leatherman Co., the firm that conducted the survey, told the City Council that Farmington had a greater percentage of "boosters" than many other metro area cities. Locating businesses The city code and ordinance revisions may address where emerging kinds of businesses could locate within the city, Kienberger said. Accommodating a microbrewery with a taproom might mean allowing what traditionally is a manufacturing use in a commercial district or downtown, Kienberger said. The city would need to look at whether solar farms that take up lots of land would fit in an agricultural area or an industrial park. Since the city allows residents to keep chickens, Kienberger said, others are asking about urban beekeeping in Farmington. The city also would like to attract data centers that house computer systems and servers, he said. In addition to the ordinance review, the city plan calls for supporting the retention and expansion of existing businesses. And city staff want to maintain relationships with landowners and developers to understand what they're looking for in future industrial development, Kienberger said. "We're continuing to see residential growth," Kienberger said. "We're continuing to see new and emerging interest in commercial and industrial development. The more proactive we can be in making sure our city code and our zoning ordinances align with what people are looking for, the more likely we are to increase development and have some of these projects take shape." Todd Nelson is a freelance writer in Woodbury. His e -mail is todd nelson@mac.com. After years of downsizing, big houses make a comeback http: / /www.startribune.com /after - years -of- downsizing -big- houses - make- a- comeback/307269161/ Low interest rates, higher incomes and longer wish lists contribute to sprawling new single - family homes. By Emma Nelson Star Tribune June 14, 2015 — 11:02am Renee Jones Schneider, Star Tribune Ryan Cook and Trent Kasper are building a 4, 000- square- foot home in Minnetrista. They say low interest rates make the project possible. Sprawling single - family houses, spurned just a few years ago by buyers, are back. And they're bigger than ever. For the first time, the average size of a new single - family home built in the United States topped 2,600 square feet in 2014. About a third of the houses built last year were larger than 3,000 square feet. "You have seen the homes just growing bigger and bigger and bigger," said Teresa St. Amant, a Twin Cities architectural designer. "There are people that don't want really huge houses, but the reality is everybody wants a lot in their home, so they tend to creep up in size." Average home sizes fell during the first few years after the housing bust. The weak economy, high fuel prices and a surge in apartment and condominium construction led some to speculate that the American dream had changed. Instead of a big house in the suburbs, consumers would instead opt for smaller homes near central cities. But average home sizes in the U.S. and the Midwest region began climbing again in 2011, and now are bigger than they were at any time before the recession. Homes larger than 4,000 square feet accounted for 10 percent of all new homes built in the U.S. in 2014, almost double what they were a decade earlier. 1973:1,660 square feet Average household size: 3 people Square feet /person: 551 Four bedrooms or more: 23 % More than two bathrooms:19 % Two-car garage or larger: 39% Source: US, Census 6meau 2014: 2,657 square feet Average household size: 2.5 people Square feet/person:1,046 Four bedrooms or more: 46% More than two bathrooms:66% Two -car garage or larger: 85% MARK BOSWELL • Star inbune Ryan Cook, 30, and Trent Kasper, 25, are building a 4,000 - square -foot house in Minnetrista, in a development where hundreds of new houses are planned. Theirs will have four bedrooms, three bathrooms, an upper -level laundry and an unfinished basement where they might add a home theater or playroom for future children. "It wasn't really about the square footage," Cook said. "It was more about the design of the home, finding one that fit our needs and wants." They are paying about $560,000 for the house, and said the current market was part of the draw. They're expecting to get an interest rate of about 4 percent. "That's the only reason we can afford what we can afford," Cook said. "Ten years ago, you couldn't have gotten this big." The surrounding development, when it is complete, will have a pool, a clubhouse and baseball fields. Chris Galler, CEO of the Minnesota Association of Realtors, said the draw for buyers is simple: "It's brand - new." New construction like this development in Apple Valley's Cortland neighborhood is gladly approved by metro -area city councils that were stung by retrenchment during the recession. Cities were waiting to grow An online search of current Twin Cities real estate listings shows about 700 new, single- family homes measuring 2,500 square feet or more. While residential building activity has slowed from a year ago, the Builders Association of the Twin Cities noted that single - family home construction has outpaced apartment development in recent months. The newfound interest in large single - family houses has been a blessing for cities that have been sitting on empty land. In Inver Grove Heights, the City Council recently approved a development that will include 77 houses — with more likely to follow — and connect to $13 million in water and sewer infrastructure built in 2008. In Rosemount, city officials were left with a partly finished development after Rottlund Homes went under in 2011. The development's single - family homes sold well, but its townhouses didn't. Rosemount Senior Planner Eric Zweber said the city recently approved more townhouse development, but the most significant demand is for single- family homes. In its newest neighborhood, the largest houses measure about 3,700 square feet and cost around $500,000. Officials in suburban and exurban communities have talked in recent years about more sustainable apartments or townhouses, but single - family homes still dominate the landscape. Christopher Leinberger, a nonresident senior fellow at the Brookings Institution and a former real estate developer, maintains that there's "pent -up demand" for more sustainable, walkable development. "The problem is that the homebuilding industry in particular does not know how to deliver that product," he said. Cities aren't necessarily ignoring the idea of dense, walkable development. Ed Goetz, director of the University of Minnesota's Center for Urban and Regional Affairs, said it's just hard for them to say no when a developer walks in with plan for a big home project that will boost the population and the tax base. "It's not clear that these communities, even if they talk the game of walkability and compact and efficient development, [are] driving development patterns as much as they might be able to," he said. Houses are getting bigger in inner -ring suburbs, too. In Edina, the teardown trend is showing no signs of slowing —134 single- family home demolition permits were issued last year, compared to 33 in 2010 — and the new houses can be upward of 4,000 square feet, said City Manager Scott Neal. "Absent any economic shock or change in the way that we handle these things from a regulatory standpoint, I don't see any factor that would slow it down much," he said. Still growing The demand for'more square footage is only expected to grow. "As long as incomes are rising and we've got a significant high- income population, there's going to be a demand for that type of housing," said Goetz of the U. Galler, from the Minnesota Association of Realtors, said the trend can be traced back to the birth of the two - income household. "It's basically when women started to enter the workplace in larger numbers, at higher income levels, and families moved from poor cities to the suburbs," he said. "When they did that, they built bigger homes." But "bigger" then wouldn't turn many heads now. In 1973, the average new single- family home in the U.S. was 1,660 square feet. During the recession, Goetz said, there was a hope in the urban planning community that high energy costs — namely, gas prices that made living in the suburbs more expensive — would force major changes in the housing market. But just a few years later, costs are back down and old habits have re- emerged. "It's a little bit discouraging to hear that the memories are so short on this," he said. http: / /www.governing.com /templates /gov print_article ?id= 304723091 High -Speed Internet as Important as Plumbing, Developers Say BY: Ely Portillo, The Charlotte Observer 1 May 22, 2015 (TNS) -- Ultra -high speed Internet such as Google Fiber still seems a bit fantastical to many people, but developers and real estate professionals say they can't afford not to integrate the fastest speeds into new buildings any more than they could neglect to install plumbing. Google Fiber is preparing to roll out its gigabit -speed Internet service locally — an executive said Thursday they hope to "light up" their first houses in Charlotte this year — and competitors such as Time Warner Cable are boosting their speeds as well. "Reliable, fast Internet is a hot topic in the real estate community," said Deputy City Manager Ron Kimble, at a forum in South End sponsored by the Urban Land Institute. Here's what some of the players had to say about how the new ultra- connectivity is changing real estate: Get ultra -high speed right, or get punished in the marketplace. "I wouldn't say (renters) ask for it. They expect if. If it's not there, they won't live there," said Greg McDonald, director of telecom support for Greystar, which is building the Ascent apartment tower uptown. He said Millennials especially expect the highest speeds. More and more of our daily activities run online — the Internet is now many people's source of television and phone service. Slow Internet service now constitutes a major risk for a property's reputation. "We can't tolerate a customer tweeting `I can't get my Internet connectivity,' " said Tyler Niess, chief marketing officer for Charlotte -based Crescent Communities, which is developing multiple local apartment, office and hotel towers. "It's a real risk." And Ian Davis, an attorney who works out telecom deals for real estate companies, put the impact of slow speeds like this: "Residents slaughter you on social media." "Forget about `everyone is connected' — that's so last year. Now, every thing is connected. That's what Lee Bienstock, a Google executive from New York, said real estate companies have to consider. Americans will average 50 Internet - connected devices in their homes in five years, all running on broadband networks that have to handle the traffic. There's even a connected toothbrush and connected pill bottles on the market, to help monitor brushing habits and medicine compliance (So if you're prone to paranoia, the future is very, very scary). That means buildings will have to be developed with that level of connectivity built in, or face expensive retrofits. Internet connectivity will impact buildings' physical layouts. The Internet seems ephemeral, but Bienstock gave a concrete example: Same -day delivery. As more companies — Google included push for same -day delivery services, many apartment buildings don't have the package room space to accommodate the influx. If Google, Amazon and their ilk are correct, and we increasingly turn to the Internet for groceries and other necessities, buildings will have to be designed with that in mind. More lawsuits. Davis said that in the first 14 or so years of his practice, he only saw about a dozen cases where a building operator aggressively went after a telecom provider for poor service. "A lot of people in the past were like, `Ah, just give me a contract, I'll sign it,' " said Davis. But as Internet speed becomes more and more important, Davis said building operators are more willing to take action if someone they've signed an exclusive contract with doesn't deliver the best service. He said his firm is handling about two dozen such cases right now. ©2015 The Charlotte Observer (Charlotte, N.C.) Distributed by Tribune Content Agency, LLC. This article was printed from: http://www.govtech.com/network/High- Speed- Internet- as- Important- as- Plumbing - Developers - Say.html 1 of 1 5/26/2015 1:09 PM