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HomeMy WebLinkAbout01-07-16 AGENDA SPECIAL ECONOMIC DEVELOPMENT AUTHORITY MEETING January 7, 2016 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. CITIZENS COMMENTS 7. CONSENT AGENDA (a) Meeting Minutes (10/26/15 Regular Meeting) (b) Monthly Statements 8. PUBLIC HEARINGS 9. DISCUSSION ITEMS (a) Program Year 2016 Community Development Block Grant Application (b) 2016-2018 Strategic Plan for Economic Development (c) January Director's Report 10. ADJOURN otiFARM4 City of Farmington (ti" 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ,,, 4.° www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Meeting Minutes (10/26/15 Regular Meeting) DATE: January 7, 2016 INTRODUCTION/DISCUSSION Please find attached the minutes from the October 26, 2015 Regular EDA Meeting. ACTION REQUESTED ATTACHMENTS: Type Description Backup Material Meeting Minutes (10/26/15 Regular Meeting) MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular (Strategic Planning Session) October 26, 2015 1. CALL TO ORDER The meeting was called to order by Chair Larson at 5:00 p.m. Members Present: Jolley,Larson,Bonar, Wilson,Zeaman Members Absent: None Also Present: Adam Kienberger, Community Development Director,Mark Lofthus,Dakota Electric Association,Dr. Craig Waldron, Strategic Planning Consultant. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Zeaman second by Jolley to approve the Agenda. APIF,Motion Carried. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Wilson second by Jolley to approve the Consent Agenda as follows: a) Meeting Minutes--September 28,2015 Regular Meeting b) Monthly Statements APIF,Motion Carried. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) 2016-2018 Strategic Plan for Economic Development—Dr. Craig Waldron conducted and facilitated the Strategic Planning Session for the EDA's 2016-2018 EDA activities. 9. DIRECTOR'S REPORT October Director's Report a) EDA Structure- City Council approved the addition of two ISD 192 school board seats to the EDA board at their October 19th meeting. When the process is complete,it is anticipated the new members will join the EDA in February 2016. The EDA determined that the new meeting date and time will be on the 4f''Thursday of each month at 6:30pm. b) Downtown Redevelopment Plan- On September 21,2015,the City Council appointed a Task Force to oversee the creation of a Downtown Redevelopment Plan. Steve Wilson serves as the EDA representative on the Task Force. EDA Minutes(Regular) October 29,2015 Page 2 10. ADJOURN MOTION by Wilson, second by Bonar to adjourn at 7:57 p.m. APIF,Motion Carried. Respectfully submitted, J Sue Miller Administrative Assistant • otiARif4► City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 •„ www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Statements DATE: January 7, 2016 INTRODUCTION/DISCUSSION Please find attached the monthly statements for the EDA. 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M / i { L i§ i'rng SLO)2{] ) ! i \ /2{ / J2 Yo�FpRMi�► City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 1W•,,,„o+* www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Program Year 2016 Community Development Block Grant Application DATE: January 7, 2016 INTRODUCTION/DISCUSSION The City has been informed by the Dakota County Community Development Agency(CDA)that it will be receiving an estimated $42,520 in Community Development Block Grant(CDBG) funds for Program Year 2016(July 1, 2016—June 30, 2017). To secure the grant money that is available, the City must prepare and submit an application that specifies eligible activities or projects (see attached Eligible Activities) to which the City intends to allocate the available funding. A completed application is due to the CDA by January 29, 2016 accompanied by an approved City Council Resolution. Annually, the City receives federal CDBG funds which are distributed by the Dakota County CDA. In 2015, the allocation amount was $42,520. The CDA anticipates a similar amount in the 2016 HUD budget for CDBG funds. However, this amount may change as HUD finalizes its budget in 2016. DISCUSSION Proposed Activities City staff is proposing that the estimated $42,520 be allocated between two activities for 2016. It is recommended that$37,520 be allocated to the Commercial Rehabilitation program, and $5,000 to Senior Services—Financial Support Program. The Commercial Rehabilitation Program has proven successful and leverages significant reinvestment by the benefitting businesses. The most recent projects to receive funding were the Otten/Dueber's building, Farmington Bakery, and 341 Third Street/Town Sports. The basic program outline is as follows: Grant funds may be available to assist local businesses and/or property owners who are making qualified improvements to eligible commercial properties that eliminate conditions that are detrimental to public health and safety. The following are examples of qualified improvements:correcting code violations, code improvements, and the correction of handicap accessibility issues. The intent of the grant program is to prevent the deterioration of commercial structures and discourage blight, encourage projects that correct code violations and to eliminate accessibility restrictions. Requirements of the program include, but are not limited to the following: • Applicant providing a 1:1 dollar match • Competitive bidding • Davis-Bacon Wage Act(payment of prevailing wages to contractors) Approximately three years ago, the Senior Services—Financial Support Program was initiated with CDBG dollars to help underwrite and expand senior programming. This lump sum is nearing the end of its funding and the Rambling River Center is requesting a$5,000 allocation for Program Year 2016. This amount is smaller than previously requested and is intended to last a single program year. HUD recently enacted new spend-down requirements that require cities to utilize their CDBG funds within a year and a half of receipt. The basic program outline is as follows: The Rambling River Center(Center)is committed to providing quality programs and services, while encouraging the involvement of adults over age 50. The Center is requesting continued funding for the Financial Support Program which currently offers low to moderate income persons the opportunity to do the following: • Participate in programs and services by removing the financial barrier to do so. • Increase the health and wellness in older adults through participation in programs that focus on these two areas. • Increase the revenues that are received at the Rambling River Center and make it less dependent on local taxpayer subsidy. • Provide a support network that fosters a sense of community and camaraderie for older adults. • Provide access to leisure programs that feature traveling to cultural events and other communities. • Helps to keep older adults active in order to continue to maintain independence while increasing their social network. Since receiving funding in Program Year 2013, this program has increased access to 462 people with fourth quarter still in progress. Through this funding,people were able to access the Center who may not have had the means to do so previously. Through their involvement people were able to try new classes,programs and - trips while creating companionships along the way. Through continued funding of this program the Center hopes to continue to provide access to those who cannot afford it on their own. ACTION REQUESTED Recommend the City Council approve a resolution to allocate a total of$42,520 CDBG funds for PY2016 to the Commercial Rehabilitation Grant($37,520)and Senior Services—Financial Support Program($5,000) funding categories. ATTACHMENTS: Type Description o Backup Material CDBG Eligible Activities 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. Yo�FRIii,,,� City of Farmington 430 Third Street Farmington, Minnesota Abi 651.280.6800 -Fax 651.280.6899 "'.,, www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 2016-2018 Strategic Plan for Economic Development DATE: January 7, 2016 INTRODUCTION/DISCUSSION During our October meeting we took the time to craft our 2016-2018 Strategic Plan for Economic Development. This facilitated session led to five key priorities the EDA will focus on over the next three years. Attached is a summary of those priorities along with some additional information framing the context of our 2016-2018 Strategic Plan for Economic Development. I have attempted to include some implementation strategies under each priority for us to review at the meeting. Please review the attached document and prepare recommendations for additional strategies so that the document can be finalized at our second meeting in January. ACTION REQUESTED Review the EDA's draft 2016-2018 Strategic Plan for Economic Development. ATTACHMENTS: Type Description ❑ Backup Material DRAFT 2016-2018 Strategic Plan for Economic Development Farmington Economic Development Authority F A R o � AL4k. 67, ..,. a gt /3 JAt.a G 0 44 ST• A PRO ,5• 2016-2018 Strategic Plan for Economic Development DRAFT 1-7-16 1 Introduction "The key to successful communities is their heart and soul —the unique cultures, landscapes, traditions and values that people cherish — and with people themselves taking action to enhance and sustain the places they love. Many communities are ready to protect their unique character, deeply engage their citizens, and meet the challenges of the 21st Century. Economic Development is one of those challenges, and citizens can assist with it by shopping locally and creating awareness to other citizens about the businesses within the City." (Farmington 2030 Comprehensive Plan— Chapter 10: Economic Development Element) Strategic planning is a key 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. The following document outlines the EDA's areas of focus for 2016-2018. Participation EDA Members: Todd Larson, Chair Jeri Jolley, Vice Chair Doug Bonar Steve Wilson Kirk Zeaman Adam Kienberger, Executive Director Dr. Craig Waldron, Facilitator 2 Mission The Economic Development Authority's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing, and expanding the tax base through development and redevelopment. Role of the EDA The role of the Farmington EDA is to serve as an advisory board to the City Council on matters related to economic development. Through policy development and implementation of new and existing tools, the EDA serves as the voice of economic development. 3 Strategic Priorities The following five priorities were ranked by the EDA at their strategic planning session and are defined below. These priorities will serve as the focus and primary guidance of the EDA from 2016-2018. Because new opportunities and ideas will arise during this timeframe, these priorities are meant to serve as the focus areas of the EDA while allowing flexibility to thoughtfully explore other topics deemed important. 1. Develop tools for promoting growth and development in Farmington 2. Develop strong incentive policies to ensure proper use of tools 3. Explore plans for acquiring land for new industrial development 4. Complete the development of Vermillion River Crossings 5. Define and utilize the existing resources of the EDA, or redefine how the EDA obtains financial resources for economic development 4 Implementation Strategies 1. Develop tools for promoting growth and development in Farmington • Identify traditional economic development tools • Identify tools that can be unique to Farmington • Identify existing resources • Identify potential resource partners • Recommend tools to City Council 2. Develop strong incentive policies to ensure proper use of tools • Discuss criteria and thresholds desired for individual tools (i.e. job creation, wages, etc.) • Recommend policies to City Council • Allocate necessary resources • Promote available tools o Website etc. 3. Explore plans for acquiring land for new industrial development • Provide input on the 2040 Comprehensive Plan and land use designations o Joint meeting(s) with Planning Commission • Maintain relationships with local landowners • Explore additional ways to facilitate land development 4. Complete the development of Vermillion River Crossings • Maintain relationship with broker/landowners • Consider alternate land use options • Discuss existing assessments 5. Define and utilize the existing resources of the EDA, or redefine how the EDA obtains financial resources for economic development • Do current resources align with desired tools/initiatives? • Explore economic development revenue opportunities 5 2016 Work Plan — TBD 6 4it+Riii , City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 +r,A °, www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: January Director's Report DATE: January 7, 2016 INTRODUCTION/DISCUSSION EDA Structure City Council approved the addition of two ISD 192 school board seats to the EDA board at their meeting on October 19th. Interviews are currently being scheduled, and it is anticipated the new members will join us at our regular meeting on February 25th. NEXT MEETING Our next regular meeting is scheduled for Thursday, January 28th at 6:30 p.m. ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics.