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01-28-16
AiktVAL 4`4 \fa. /1 —414040 AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING January 28, 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. CONSENT AGENDA (a) Meeting Minutes (1/7/16 Special Meeting) (b) Monthly Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) CDBG Reallocation Request (b) Open to Business Joint Powers Agreement (c) 2016-2018 Strategic Plan for Economic Development Implementation 9. DIRECTOR'S REPORT (a) January Director's Report 10. ADJOURN o�FA ►i , City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 • nm+a'llP www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Meeting Minutes (1/7/16 Special Meeting) DATE: January 28, 2016 INTRODUCTION/DISCUSSION Please find attached the minutes from the January 7, 2016 Special EDA Meeting. ACTION REQUESTED ATTACHMENTS: Type Description o Backup Material Meeting Minutes (1/7/16 Special Meeting) MINUTES ECONOMIC DEVELOPMENT AUTHORITY Special Meeting January 7, 2016 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:32p.m. Members Present: Jolley, Larson, Bonar, Wilson, Zeaman Members Absent: Zeaman Also Present: Adam Kienberger, Community Development Director 2. PLEDGE OF ALLEGIANCE 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 Wilson second by Bonar to approve the Consent Agenda as follows: a) Meeting Minutes—October 26, 2015 Regular Meeting b) Monthly Statements APIF, Motion Carried. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Program Year 2016 Community Development Block Grant Application—The Dakota County CDA has notified the City that we will be receiving an estimated $42,520 in CDBG funds for 2016. To secure the grant money that is available, the City must prepare and submit an application that specifies eligible activities or projects 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. 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. Direction was given to Director Kienberger to have a discussion with the RRC if there is a need for$2,500 to fill a gap between now and July, 2016. Motion by Wilson second by Bonar to recommend approval and forward the Resolution to the City Council for action. APIF, Motion Carried. a. 2016-2018 Strategic Plan for Economic Development—Director Kienberger reviewed the Plan with the Authority and asked for input so the document can be finalized at the January 28, 2016 meeting. The five priorities the EDA ranked as a priority are: 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. EDA Minutes(Regular) January 7,2016 Page 2 There was more discussion about being prepared with information for interested businesses. Such as, land available, cost, etc. Maybe now is the time to begin conversations with some landowners to get an idea who could be ready to sell and what the EDA envisions for the area. Then talks about cost can begin. Develop and identify tools for financial growth. Director Kienberger noted that redevelopment TIF may be an option to explore. Discussions will continue at monthly meetings. Working together with the task force as well as other boards and commissions is essential to accomplishing goals within the strategic plan. Member Bonar suggested working on one item each meeting. Member Wilson asked what tools are needed to capture the interest of businesses. We need to focus on building the toolbox and policies. Member Jolley would like to see progress from each meeting. Member Bonar would change#5 to read: "Define and utilize the existing or future resources of the EDA". Motion by Bonar second by Jolley to approve the amended language, item#5 in the Strategic Plan and forward to the City Council for action. APIF,Motion Carried. 9. DIRECTOR'S REPORT January Director's Report a) Meetings are on the 4th Thursday of the month at 6:30PM. Packets will be available on the Monday of the week of the meeting. b) City Council workshop next week will be interviewing candidates for the EDA. 10. ADJOURN MOTION by Wilson, second by Bonar to adjourn at 7:54 p.m. APIF,Motion Carried. Respectfully submitted, Sue Miller Administrative Assistant 0 cARM/,�1 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 A POO www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Statements DATE: January 28, 2016 INTRODUCTION/DISCUSSION Please find attached the monthly statements for the EDA. ACTION REQUESTED ATTACHMENTS: Type Description o Backup Material December/January EDA Check Summary R55CKS2 LOGIS600V CITY OF FARMINGTON 1/19/2016 10:37:30 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 1 12/30/2015- 1/19/2016 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 134784 1/812016 112404 JOLLEY,GERALDINE 70.00 BAL OF EDA MTG STIPEND,2015 143549 2015 EDA STIPEND 2000 6401 PROFESSIONAL SERVICES HRA/ECONOMIC DEVELOPMENT 02000 03 BAL 70.00 134832 1/15/2016 100364 EHLERS&ASSOCIATES INC 280.00 FEB 04-05 PUB FINANCE SEMINAR 143538 FEB 04-05 SEMINAR 2000 6470 TRAINING&SUBSISTANCE HRA/ECONOMIC DEVELOPMENT 02000 03 280.00 Report Totals 350.00 �oEipRN4 City of Farmington y 430 Third Street Farmington, Minnesota 'ta 651.280.6800 -Fax 651.280.6899 -.,, www ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: CDBG Reallocation Request DATE: January 28, 2016 INTRODUCTION/DISCUSSION At our January 7th meeting,the EDA recommended application to the Dakota County CDA for Farmington's Program Year 2016 Community Development Block Grant funds. This amount is estimated to be$42,520 and will be allocated between two activities for 2016. It was recommended that$37,520 be allocated to the Commercial Rehabilitation program, and $5,000 to Senior Services—Financial Support Program. City Council approved this application at their January 19th meeting. It was also recommended that staff inquire with the Rambling River Center about their need for additional funding between now and July when the PY2016 dollars would become available. Based on this discussion, the Parks and Recreation Director in conjunction with the Recreation Supervisor for the Rambling River Center would like to respectfully request that the EDA reprogram$2,500 from the 2015 Commercial Rehabilitation Grant Program to the Senior Services—Financial Support Program. Because the CDA classifies this type of a transfer as a"substantial amendment", it requires County Board approval. If the EDA is in favor of this transfer, it will take approximately 45 days for the funds to be available to the Rambling River Center. The current uncommitted balance of the 2015 Commercial Rehabilitation Grant Program is approximately $13,200. This recommended transfer of$2,500 will leave the Commercial Rehabilitation Grant Program with a new uncommitted balance of approximately$10,700 which is enough for a mid-sized project. The program is scheduled to receive$37,520 additional dollars in July per the 2016 application. As HUD continues to enforce timely expenditure of CDBG funds, staff recommends it is prudent to allocate the dollars to programs that currently have a demonstrated need. ACTION REQUESTED Request that the Dakota County CDA reallocate$2,500 from the City of Farmington's PY2015 Commercial Rehabilitation Grant Program to a PY2015 Senior Services—Financial Support Program activity. (04* City ofFarmington 43Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 a'g.,,�,,,rea www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Open to Business Joint Powers Agreement DATE: January 28, 2016 INTRODUCTION/DISCUSSION The Open to Business Program was started in Dakota County in 2013 as a county-wide effort to offer expert technical assistance and additional financial resources to small businesses and entrepreneurs. Now in its third year, the program continues to gain recognition and have an impact on our small business economy. As a county-wide effort, cities in Dakota County wishing to participate in the program enter in a joint powers agreement(JPA)with the Dakota County Community Development Agency(CDA) on a yearly basis. The CDA is the agency that holds the contract for services with the Metropolitan Consortium of Community Developers (MCCD)to operate the Open to Business Program. Most of you have met Laurie Crow who serves as our Dakota County area staff person for this program. If there is interest in having her attend a future EDA meeting to discuss the program, she would be happy to accommodate us. The total program fee for services offered throughout Dakota County is $140,000. The CDA continues to cover over 50% of this fee with the remainder distributed amongst the participating cities in Dakota County according to population. Farmington's fee for 2016 is unchanged and remains at$5,000. The master Contract for Services between the CDA and MCCD along with the Joint Powers Agreement are attached. Staff recommends continued participation in this program as it remains a strong resource for small business growth and entrepreneurs in Farmington. ACTION REQUESTED Authorize the execution of the Open to Business Joint Powers Agreement between the Farmington Economic Development Authority and the Dakota County Community Development Agency. ATTACHMENTS: Type Description ❑ Contract JPA and CDA/MCCD Contract for Services ❑ Backup Material OTB Star Tribune Articles JOINT POWERS AGREEMENT Open to Business Program THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of January 1, 2016,by and between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY(the "CDA"), a public body corporate and politic organized and existing under the laws of the State of Minnesota(the"State"),and each of the CITY OF BURNSVILLE, CITY OF LAKEVILLE,CITY OF MENDOTA I-IEIGIITS, INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY, HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY, ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, CITY OF SOUTH ST. PAUL, AND WEST ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA (each individually a "Local Government Entity" and together the "Local Government Entities"), each a political subdivision of the State. RECITALS: A. In order to pursue common goals of fostering economic development,the CDA and the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community Developers, a Minnesota non-profit corporation ("MCCD") to undertake the "Open To Business Program"(the"Program")within Dakota County(the"County"). B. Pursuant to the Program, MCCD will provide technical assistance and access to capital to small business and potential entrepreneurs in the County. C. The CDA and the Local Government Entities propose to jointly exercise their common economic development powers to undertake the Program. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the CDA and each of the Local Government Entities, each party does hereby represent, covenant and agree with the others as follows: Section 1. Representations. Each of the Local Government Entities and the CDA makes the following representations as to itself as the basis for the undertaking on its part herein contained: (a) It is a political subdivision of the State of Minnesota with the power to enter into this Agreement and carry out its obligations hereunder. Joint Powers Agreement (b) Neither the execution and delivery of this Agreement,the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which it is now a party or by which it is bound,or constitutes an event of default under any of the foregoing. Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to this Agreement are the powers of the CDA and the Local Government Entities under Minnesota Statutes, Chapter 469, to undertake activities to promote economic development within their respective jurisdictions. Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own behalf and on behalf of the Local Government Entities, will initially enter into an agreement with MCCD in substantially the form attached hereto as Exhibit A (the "Agreement") to engage MCCD to operate the Program within Dakota County. The CDA and each of the Local Government Entities will make payments to MCCD as described in Exhibit A of the Agreement. The CDA may from time to time execute and deliver documents amending, modifying or extending the Agreement as it deems necessary or convenient, provided, that no such document will adversely affect services provided to, or amounts payable by, any Local Government Entity without the prior written consent of such Local Government Entity. Section 4. Limited Liability. Neither the CDA nor the any of the Local Government Entities shall be liable for the acts or omissions of the other in connection with the activities to be undertaken pursuant to this Agreement. To the extent permitted by law, (a) the CDA hereby indemnifies the Local Government Entities for costs associated with claims made against the Local Government Entities directly relating to actions taken by the CDA, and (b) each Local Government Entity hereby indemnifies the CDA for costs associated with claims made against the CDA directly relating to actions taken by such Local Government Entity. Nothing herein shall be deemed a waiver by the indemnifying party of the limits on liability set forth in Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on behalf of the indemnified party, any amounts in excess of the limits on liability set forth in Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay on behalf of itself, its officers, agents and employees for claims arising out of the same occurrence. Section 5. Conflict of Interests;Representatives Not Individually Liable.The CDA and each of the Local Government Entities,to the best of its knowledge,represents and agrees that no member, official or employee of their respective bodies shall have any personal interest, direct or indirect,in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official or employee of the CDA or any Local Government Entity shall be personally liable with respect to any default or breach by any of them or for any amount which may become due to the other party or successor or on any obligations under the terms of this Agreement. 2 Joint Powers Agreement Section 6. Term; Distribution of Property. The term of this Agreement shall expire on December 31, 2016. There is no property which will be acquired by the CDA or any Local Government Entity pursuant to the Program which would need to be distributed at the end of the term hereof. Section 7. Notices and Demands. A notice, demand or other communication under this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by registered or certified mail,postage prepaid,return receipt requested or delivered personally to the person and at the addresses identified on each signature page hereto, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 8. Counterparts. This Agreement may be executed in any number of counterparts,each of which shall constitute one and the same instrument. [Remainder of page intentionally left blank] • 3 Joint Powers Agreement IN WITNESS WHEREOF, the CDA and the Local Government Entities have caused this Agreement to be duly executed in their respective names and behalf as of the date first above written,with actual execution on the dates set forth below. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Dated: By Its Acting Executive Director Notice Address: Dakota County Community Development Agency 1228 Town Centre Drive Eagan,MN 55123 Attn: Lisa Alfson,Director of Community and Economic Development S - 1 Joint Powers Agreement FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 430 Third Street Farmington,MN 55024 Attn: • S - 10 Joint Powers Agreement Exhibit A Contract for Services for the Open To Business Program A- 1 Joint Powers Agreement Contract for Services • for the Open to Business Program THIS AGREEMENT is dated January ,2016 and is between the Dakota County Community Development Agency("CDA")and Metropolitan Consortium of Community Developers,a Minnesota nonprofit corporation("MCCD"). WHEREAS,the CDA,on behalf of itself and the eleven political subdivisions of the State of Minnesota listed on Exhibit A hereto (the"Local Government Entities"),which each have powers with respect to a city with a population over 10,000 (collectively the"Municipalities"), wishes to engage MCCD to render services under a model known as"Open to Business,"an initiative providing small business technical assistance services to existing businesses and residents and other parties interested in opening a business within Dakota County(the "County")(the"Initiative");and WHEREAS,MCCD has successfully provided the services required to administer and carry out the Initiative in Dakota County in 2013,2014,and 2015;and WHEREAS,pursuant to CDA Resolution No. 15-5655,adopted on December 15,2015 (the "Resolution"),the CDA is authorized to enter into this agreement with MCCD for the Initiative; and WHEREAS,pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Local Government Entities(the"Joint Powers Agreements"),the CDA will act as fiscal agent for the Local Government Entities in connection with this Agreement; and WHEREAS,the CDA will pay from its own funds 50%of the fee charged by MCCD for the Initiative in the Municipalities and 100% of the fee charged by MCCD for the Initiative in the small cities and townships within the County with populations of less than 10,000 people ("Small Cities and Townships"),as further described herein and in Exhibit A; and WHEREAS,the CDA will pay from its own funds the $5,000 increase in 2016 to support the increased marketing and lending support that will be led by MCCD,as further described herein and in Exhibit A and WHEREAS,pursuant to the Joint Powers Agreements,the Local Government Entities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50%of the fee charged by MCCD for the Initiative in the Municipalities. Now therefore,for good and valuable consideration,the receipt of which is hereby acknowledged,the parties agree as follows: TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence on January 1, 2016 and will end on December 31,2016, subject to earlier termination as provided herein. MCCD will perform services necessary to carry out the Initiative as promptly as possible, and with the fullest due diligence. COMPENSATION Subject to reduction as provided below,the CDA will compensate MCCD for its services hereunder an amount equal to One Hundred Forty Thousand Dollars($140,000) ("Contract Amount"). The CDA will pay such amount in two equal installments,the first no earlier than January 30,2016 and the second no earlier than June 30, 2016,upon receipt of invoices from MCCD. Subject to the limits above,payments will be due within 15 days of receipt of the respective invoices, The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Local Government Entities. In the event a Local Government Entity does not pay to the CDA its Participation Fee in amounts and by the deadline described in Exhibit A,the CDA will notify MCCD,and MCCD will immediately cease the Initiative in that Municipality. Upon such termination,the Contract Amount will be reduced by an amount equal to the Participation Fee which such Local Government Entity did not pay and the amount the CDA would have paid as a matching payment. SCOPE OF SERVICES MCCD will provide technical assistance to existing businesses,residents and those parties interested in starting a business in any of the Municipalities and Small Cities and Townships as further described on Exhibit B and Exhibit C attached hereto,which sets forth the Dakota Open to Business Program Scope of Services. REPORTING MCCD will submit quarterly reports to the CDA in form and substance acceptable to the CDA. Reports will provide information in the aggregate for the County and will include 1 a sub:report for each Municipality and each of the Small Cities and Townships. Reports will include the following information: > Number of inquiries > Hours of technical assistance provided • Type of assistance provided > Type of business > Annual sales revenue > Number of businesses opened > Number of business expanded/stabilized > Number and amounts of financing packages > Demographic information on entrepreneurs > Business address or resident address > Number and wage of FTEs created > Number and wage of F l'hs retained The required reporting schedule is as follows: 1st quarter January—March,report due April 30th 2"d quarter April—June,report due July 31st 3rd quarter July—September,report due October 31St 4th quarter October—December,report due January 31,2017 In addition to the foregoing,MCCD will provide additional reports as reasonably requested by the CDA. PERSONNEL MCCD represents that it has,or will employ or contract for, at its own expense, all personnel required to perform the services necessary to carry out the Initiative. Such personnel will not be employees of,or have any contractual relationship with,the County,the CDA or any of the Local Government Entities. No tenure or any other rights or benefits,including worker's compensation,unemployment insurance,medical care, sick leave,vacation pay, severance pay,or any other benefits available to the County's, the CDA's or any of the Local Government Entities' employees shall accrue to MCCD or employees of MCCD performing services under this agreement. The MCCD is an independent contractor. All of the services required to carry out the Initiative will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Initiative. MCCD personnel will have access to the CDA's meeting rooms,wireless internet service,copy machines and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space,equipment and internet access. If the CDA,in its sole discretion, determines that MCCD Personnel have failed to comply with CDA office rules and policies,MCCD Personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Initiative. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer,member,or employee of the CDA and no member of its governing body,and no other public official or governing body of any locality in which the Initiative is situated or being carried out,who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative,will participate in the decision relating to this Agreement which affects his/her personal interest or the interest of any corporation,partnership, or association in which he/she is,directly or indirectly, interested or has any personal or pecuniary interest,direct or indirect,in this Agreement. ASSIGNABILTY MCCD will not assign any interest in this Agreement,and will not transfer any interest in the same without the prior written approval of the CDA. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal laws,statutes and applicable regulations of the State of Minnesota and the ordinances of the Local Government Entities. INSURANCE MCCD agrees at all times during the term of this Agreement,and beyond such term when so required,to have and keep in force the following insurance coverages: Limits 1. Commercial General Liability on an occurrence basis with contractual liability coverage: General Aggregate $2,000,000 Products—Completed Operations Aggregate 2,000,000 Personal and Advertising Injury 1,500,000 Each Occurrence—Combined Bodily Injury and Property Damage 1,500,000 2. Workers' Compensation and Employer's Liability: Workers' Compensation Statutory In the event that MCCD should hire employees or subcontract this work, MCCD shall obtain the required insurance. Employer's Liability. Bodily injury by: Accident—Each Accident 500,000 Disease—Policy Limit 500,000 Disease—Each Employee 500,000 INDEMNIFICATION MCCD agrees to defend, indemnify,and hold harmless the County,the CDA,the Local Government Entities,and each of their respective officials,officers,agents,volunteers and employees from any liability, claims,causes of action,judgments,damages,losses, costs, or expenses, including reasonable attorney's fees,resulting directly or indirectly from any act or omission of MCCD,its subcontractors, anyone directly or indirectly employed by MCCD or any of its subcontractors, and/or anyone for whose acts and/or omissions MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of the failure of MCCD to perform any obligation under this Agreement. NOTICES A notice,demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail,postage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD, is addressed or delivered personally to: Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis,MN 55407 (b) In the case of the CDA is addressed or delivered personally to: Lisa Alfson,Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Dr. Eagan,MN 55123 or at such other address with respect to any party as that party may designate in writing and forward to the other as provide in the Section. MODIFICATION This Agreement may not be modified,changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON-DISCRIMINATION In connection with its activities under this Agreement,MCCD will not violate any Federal or State laws against discrimination. DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute a default hereunder. Unless MCCD's default is cured within 15 days following notice by the CDA,the CDA may(i)cancel this Agreement in its entirety by 5 additional days' written notice to MCCD,or(ii)withhold payment from MCCD as long as such default continues. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation,however,in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid,illegal or unenforceable,the remaining provisions will not be affected. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By: Acting Executive Director Date: MCCD By: Printed Name: Printed Title: Date: Exhibit A Local Government Entity Participation Fee Schedule Municipality Local Government Total CDA Local Government Entity Fee Share of Entity Participation Fee Fee Due 1/30/16 Eagan Economic Development Eagan Authority $15,000 $7,500 $7,500 City of Burnsville Burnsville $15,000 $7,500 $7,500 City of Lakeville Lakeville $15,000 $7,500 $7,500 Apple Valley Economic Apple Valley Development Authority $15,000 $7,500 $7,500 Inver Grove Heights Economic Inver Grove Development Authority $12,500 $6,250 $6,250 Heights Hastings Economic Hastings Development and $10,000 $5,000 $5,000 Redevelopment Authority Rosemount Port Authority Rosemount $10,000 $5,000 $5,000 Farmington Economic Farmington Development Authority $10,000 $5,000 $5,000 South St.Paul Housing and South St.Paul Redevelopment Authority $10,000 $5,000 $5,000 West St. Paul Economic West St. Paul Development Authority $10,000 $5,000 $5,000 Mendota City of Mendota Heights Heights $5,000 $2,500 $2,500 Small Cities n/a $7,500 $7,500 $0 and Townships Additional Assistance with increased contract cost marketing and lending spport $5,000 $5,000 Total $140,000 $76,250 $63,750 Exhibit B Dakota Open to Business Program Scope of Services Open to Business ("OTB")Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Municipalities' and Small Cities' and Townships' businesses,residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County(the"County"). MCCD will dedicate one full time staff person based in the County to provide the Technical Assistance Services ("Dakota OTB Staff'). In addition,MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes,but is not limited to,the following: D Business plan development D Feasibility analysis D Marketing D Cash flow and other financial projection development D Operational analysis D City and State licensing and regulatory assistance D Loan packaging,and other assistance in obtaining financing D Help in obtaining competent legal advice MCCD Dakota 0 IB Staff will be available to meet clients at the CDA office building,various Municipality city halls or at the client's place of business. MCCD Dakota 0 IB Staff will provide technical assistance on a walk-in basis monthly in each Municipality,if requested. MCCD will also hold two-hour"Test Drive Your Business Idea"sessions once a month in various Municipality locations. Open to Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD's Emerging Small Business Loan Program(see Exhibit C Small Business Loan Program Guidelines below). MCCD also provides it's financing in partnership with other community lenders,banks or Local Government Entities interested in making capital available to residents and/or businesses in their community. EXHIBIT C Small Business Loan Program Guidelines Loan Amounts: • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a"for-profit"business. • Business must be complimentary to existing business community. • Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: • Loan proceeds can be used for working capital,inventory,building and equipment and general business operations. Interest Rates: • Loan interest rate is dependent on use,term and other factors,not to exceed 10%. Loan Term Length: • Loan repayment terms will generally range from three to five years,but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. 'Shark Tank'gives Hastings company$150K for heavy-machinery p1... http://www.startribune.com/hastings-company-gets-150k-from-shark... TV&MEDIA Hastings company gets $150K from 'Shark Tank' investors Extreme Sandbox is getting a$150,000 investment to help finance an expansion. By Erin Adler(http://www.startribune.com/erin-adler/195633361/)Star Tribune I JANUARY 7,2015—1:03PM Hastings entrepreneur Randy Stenger has taken a creative business concept from the playground to the Shark Tank—and he's emerged with an offer to help expand his company,Extreme Sandbox,to other states. Stenger started his business,in which adults pay to play with construction equipment like bulldozers and excavators,in 2012.On Tuesday,he appeared on the ABC reality show"Shark Tank"to pitch Extreme Sandbox's expansion,garnering an offer of $150,000 from two of the show's investors to buy a 20 percent stake in the company. "I think I was jumping up and down—I was shocked,"he said."They definitely edited out a bunch of curse words." But Stenger was already moving full speed ahead,with or without funding from being on the show,he said. He plans to open a second Extreme Sandbox this spring near Dallas,at a resort with a a • conference center,horseback riding and a golf course.Maneuvering construction equipment will be another activity visitors can try,he said. But because of the investment of the show's"sharks"—Mark Cuban and Kevin O'Leary ♦ .e �+ —he'll be able to move even faster with expansion,he said. ;; "I think it's just going to accelerate our growth,"he said."We're going to get the second one open in Texas and then evaluate some other possibilities." Stenger accepted the agreement on stage with a handshake.He hopes to close the deal formally this spring. Digging up business The notion of a playground for"big kids"came from a car ride several years ago,Stenger said. k.l"i "We were driving by a construction site and one of my oldest kids...said,`Dad,wouldn't (http://stmedia.startribune.com/images it be fun to go play on that stuff?'"he said."And that was really the spark of the idea." /ows_145211227397486.jpg) Stenger was working for Target as a retail consultant.With the help of his brother,he Bloomington senior Torrance Gray,left,and began building his business,choosing a sandy spot in Hastings and asking the city for freshman,Buddy Michelson,center took flexibility with zoning rules. Instruction from Extreme Sandbox instructor While Stenger was still with Target,the business began to take off.At first,it was geared more toward individuals,but over time he's begun catering to groups and corporate clients"looking for new and unique ways to engage their employees,"he said. 'We blow the doors off any golf or bowling outing,"he said. For individuals,packages start at$195,and corporations usually spend$75 to$150 per person,he said. Peter Bailey,president of the Prouty Project,a company that helps organizations develop leadership strategies,has taken six groups to Extreme Sandbox. Working with Bobcats and bulldozers on an obstacle course builds team camaraderie and helps individuals overcome beliefs that they cannot do something,he said. "He's got a really neat idea,"Bailey said."So we'll continue working with them as this goes forward." 1 of 2 1/7/2016 2:25 PM 'Shark Tank'gives Hastings company$150K for heavy-machinery p1... http://www.startribune.com/hastings-company-gets-150k-from-shark... Making it on TV Stenger began the procPcs of appearing on"Shark Tank"last April through an open casting call.Several video auditions and follow-up calls followed,he said,which was stressful. "Even when you're there,you're not guaranteed anything,"he said."They make it very clear you could be cut at any time." Last month,he finally learned he would appear on TV,he said. "You really just want that end result of being on television,"he said."They call it the `Shark Tank'effect." The connections of the"sharks"on the show can be more valuable for a business than the financial investment they may offer,said John Stavig,director of the Gary S.Holmes Center for Entrepreneurship at the Carlson School of Business. "To be on the show,it has to be a fun or somewhat outlandish idea,"Stavig said."It's more about the entertainment." He was skeptical whether Extreme Sandbox could"scale up"its business,but he thought partnering with the Texas resort was a good way to expand,he said. The concerns about scaling up were mentioned by two sharks on the show.Both passed on investing. But in the end,Stenger found his two investors,who will split the$150,000 stake. "This is going to be a game-changer for us,"he said. Erin.Adler@startribune.com 952-746-3283 2 of 2 1/7/2016 2:25 PM Open to Business program helps Dakota County companies grow-S... http://www.startribune.com/open-to-business-program-helps-dakota... SOUTH METRO Open to Business program helps Dakota County companies grow Open to Business offers free advice and financial assistance and has helped create more than 50 jobs in Dakota County. By Todd Nelson Special to the Star Tribune I MARCH 13.2015—11:38PM Randy Stenger knows how to move mountains—or at least big piles of dirt—and offers customers the chance to do that and more with excavators and bulldozers at Extreme Sandbox,his"extreme adventure"company in Hastings. But when a financing gap threatened to slow the company's growth,he turned to Dakota County's Open to Business program and business adviser Laurie Crow for assistance. "We were dead in the water there for a moment,"Stenger said."We had all the approvals but ultimately we were just a little bit short.I was able to engage[Open to Business]at the end and get through their program some funding to fill up that gap.I know I would have gotten there,but it would have taken longer and been more difficult." Open to Business offers free business counseling to prospective and current Dakota County businesses and to county residents who have businesses elsewhere.It's a partnership between Dakota County Community Development Agency,Dakota County cities and the nonprofit Metropolitan Consortium of Community Developers. The program,entering its third year in Dakota County,provided nearly$327,000 in loans to Dakota County businesses and residents from January 2013 through September 2014,the most recent period for which data was available.Open to Business helped leverage five bank loans for more than$1.4 million and served more than 300 new and existing businesses in that same period. Companies that Open to Business assisted have created more than 50 jobs since the program's inception in Dakota County,Crow said.The most common types of business ideas she sees involve services,from day-care centers and auto repair shops to retail and restaurants. Stenger,who had worked as a corporate retail consultant,founded Extreme Sandbox in 2012 on a test basis,inviting customers to navigate a course and complete tasks behind the wheel of a bulldozer,excavator or other piece of heavy equipment.As it proved popular,especially as a team-building exercise for business executives,Stenger decided to buy the 10 acres of land he had been leasing and build a small office building there. At the last minute,however,Stenger came up some$30,000 short.He had put up his own money and what he got from the bank and Small Business Administration loans. Stenger,who had gotten some early advice from Crow,returned to her at the suggestion of his bank. "Open to Business was a saving grace,"Stenger said."They had additional funds,some resources to apply through their program.They were able to recognize the potential for this new business and that's where they stepped in." Boosting city resources While Open to Business can help entrepreneurs manage gaps in their financing,as in the case of Extreme Sandbox,it also helps cities offer resources for businesses. "The cities want to be able to support all of their businesses,big and small,"Crow said. "They just don't have the knowledge,connections and infrastructure to do so.A city certainly can answer questions on licensing or zoning but any time it comes to'Will this business succeed?'or'Is this a good idea?'it gets a little precarious for them.As a neutral third party,we can have an objective opinion to help start those businesses or potentially expand them." Crow said she wanted to remind owners of existing businesses that the program is there 1 of 2 1/7/2016 2:26 PM Open to Business program helps Dakota County companies grow-S... http;//www.startribune.com/open-to-business-program-helps-dakota... for them as well. "It's OK at any level to ask for help,"she said."No question is too small." City officials can refer calls they get from people asking about business plans or bank financing to Open to Business,said Rob Smolund,the program's manager and a business adviser. "If the cities were to hire someone,it would be so expensive,"Smolund said."We figured out where the economies of scale let us create a program...the cities will buy into with county support.Now they can feature it and own it as a program to serve their residents and businesses and yet we provide all the work" Open to Business offers more than any individual city in the county could offer,said David Olson,Lakeville's community and economic development director. "They provide access to capital,they provide access to technical services,they have relationships with lenders,none of which the city is set up to do,"Olson said. Bruce Nordquist,Apple Valley's community development director,said Open to Business can even help businesses in the very beginning stages. "The Minnesota-based Fortune 500 corporations,and we have several of them,many of them started in a garage or in a small facility and now are corporate leaders in the Twin Cities,"he said'We've had this notion of,'Where is the next one,who might it be?'I think we want to foster an environment for allowing that to occur." Todd Nelson is a freelance writer in Woodbury.His e-mail is todd_nelson @mac.com. 2 of 2 1/7/2016 2:26 PM �o�FARif1., City of Farmington 430 Third Street Farmington, Minnesota `ta 651.280.6800 -Fax 651.280.6899 ,r.,,r,,,,ea' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 2016-2018 Strategic Plan for Economic Development Implementation DATE: January 28, 2016 INTRODUCTION/DISCUSSION On January 7th, the EDA completed its 2016-2018 Strategic Plan for Economic Development(attached)and forwarded it on to the City Council for acceptance. The City Council will receive this at their February 1st meeting. The EDA's main priorities are identified as: 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 or future resources of the EDA. Implementation of this plan begins with discussing economic development tools and how we can form the policies to utilize them. Attached is a TIF 101 presentation handout from the City's financial advisor Ehler's &Associates. This document is meant to start the conversation on different types of assistance a city can offer as well as provide a fundamental understanding of one of the most common tools. This meeting will begin our discussion on tools and how we can leverage those tools for development. Economic development tools can often take the form of: • TIF/Abatement(tax deferral/refunding) • Programs to encourage new investment(Main street programs/CDBG) • Targeted types of businesses (statewide datacenter program) • Grants/loans (local/state/partners) • Training assistance ACTION REQUESTED Discuss types of tools the EDA should focus on for encouraging new and expanded investment in Farmington. ATTACHMENTS: Type Description o Exhibit 2016-2018 Strategic Plan for Economic Development D Exhibit Ehler's TIF 101 Farmington Economic Development Authority AR �c F 8 o ti W 134% 4 4.0 t( 4497.• a PRoOo 2016-2018 Strategic Plan for Economic Development January 2016 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 io: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 or future resources of the EDA. 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 Encourage additional collaboration between advisory bodies 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 or future resources of the EDA. • Do current resources align with desired tools/initiatives? • Explore economic development revenue opportunities • Joint meeting(s)of the EDA and City Council 5 2016 Work Plan —TBD Check in on strategic priorities at each EDA meeting to demonstrate progress or discussion needed. 6 2/6/2014 431 EHLERS LEADERS IN PUBLIC FINANCE TIF Basics City of Farmington, Minnesota 2016 i IcCe ■ ■ ■ Outline • Basics of Tax Increment • Framework of a District • Types of Districts • But-For/Gap Analysis • Uses of TIF • Basics of Tax Abatement • Comparison of TIF to Abatement Ille e EHLERS 1 2/6/2014 Basics of Tax Increment Minnesota Statutes 469.174 — 469.1794 EHLERS What is TIF? Tax Increment Financing (TIF): The ability to capture and use most of the increased local property tax revenues from new development within a defined geographic area for a defined period of time without approval of the other taxing jurisdictions. EHLERS 2 2/6/2014 Why use TIF? • Encourage certain types of development or redevelopment that would not normally occur without assistance ("but for" test) •Create or retain jobs •Redevelop blighted areas •Remediate polluted sites •Construct affordable housing i EHLERS Building Blocks of TIF Tax revenues The original(`base")market value continue to go to all established when District created local governments Original Tax Capacity EHLERS 3 2/6/2014 Building Blocks of TIF TIF District"captures" increased value from new development Development occurs= New Tax Capacity ti I I000.111111 �\ I TIF = Captured Tax I Capacity x Local Tax Rate Original Tax Capacity EHLERS Project Area: Where Increment may be Spent Project Area • TIF Districts must be located in a Project Area or Development District • Multiple TIF Districts can be in a Project Area • Increment can be spent outside a TIF District in Project Area (aka "pooling") EHLERS 4 2/6/2014 TIF District: Where Increment is Collected • Defines parcels whose increased value will be captured • Parcels do not have to be contiguous, but usually are • Must meet criteria in State law for type of District being established EHLERS TIF District Approval • Can be established by City, County, HRA or EDA • TIF Plan and Project Area Plan • State policy objectives • Provide maximum budget authority for TIF revenues and expenditures • Must have approval of elected officials following public hearing EHLERS 5 2/6/2014 Types of Districts • Redo substandard / obsolete buildings • Redevelopment TIF District • Renovation and Renewal TIF District • Affordable housing • Housing TIF District • Job and tax base creation • Economic Development TIF District O EHLERS Redevelopment District • Parcels consisting of 70% of area must be improved • "Improved" means - buildings, streets, utilities, paved or gravel parking lots • Improved area equals 15% area of parcel • More than 50% of buildings must be substandard • 90% of TIF used to correct redevelopment issues • Reasonable distribution of conditions EHLERS 6 2/6/2014 Reasonable Distribution y ❑ 80%Substandard buildings 60%Substandard buildings 80%Coverage 80%Coverage 13 41 EHLERS Renewal and Renovation • Parcels consisting of 70% of area is improved • 20% of buildings are structurally substandard • 30% of other buildings require substantial renovation or clearance • To remove inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, etc. 0 EHLERS iir7 2/6/2014 Housing District • Affordable Housing - Income test is main qualification • TIF law references federal rules on income limitations • More liberal rules on pooling • 100% tax increment used for affordable housing; 20% of project's value can include commercial/ industrial development 144 EHLERS Housing District: Owner Occupied • Income of 95% of first buyers is limited to 100% (Family of 2) or 115 % Family of 3+) of the greater of state or local median income • Metro area: Family of 2 = $83,900; Family of 3+ = $92,180 (2015) • State-wide: Family of 2 = $77,400; Family of 3+ = $89,010 (2015) •First-buyer test for income compliance 10/i EHLERS 8 2/6/2014 Housing District: Rental • Income adjusted annually and by number of occupants from 1 to 6 • 40% of units restricted to 60% of median income • 20% of units restricted at 50% of median income • Annual test for income compliance '1101 0 EHLERS Economic Development • At least 85% of new building space must be: • Manufacturing • Warehousing, storage, distribution • Research and development • Telemarketing • Space necessary and related to the above uses EHLERS 9 2/6/2014 "But For" Test • The development is only possible but for the use of tax increment • Elected body has to make this finding et EHLERS Gap Analysis • How much assistance is needed? • Pro forma Analysis • Cost comparison of raw land vs. developed land 4/41 e EHLERS 10 2/6/2014 How can increment be spent? •Must meet policy objectives in TIF Plan •Must be in TIF Plan Budget i EHLERS How Can Increment be Spent? • Must Be Costs Associated with New Development • Land Acquisition • Demolition and Relocation • Site improvements • Utilities, Streets, Sidewalks • Environmental Clean-up • Parking • Buildings (only for housing districts) EHLERS 11 2/6/2014 et- EHLERS LEADERS IN PUBLIC FINANCE Shelly Eldridge Ehlers (651)697-8504 seldridge@ehlers-inc.com Stacie Kvilvang Ehlers (651)697-8506 sklvilvang@ehlers-inc.com ■ ■■ 7 12 yo�Fp�ti� p City of lFarmington 4w Z A. treet Farmington, Minnesota ra 651.280.6800 -Fax 651.280.6899 .,,,, + ' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: January Director's Report DATE: January 28, 2016 INTRODUCTION/DISCUSSION EDA Structure City Council approved the addition of two ISD 192 school board seats to the EDA. School Board members Jake Cordes and Steve Corraro were appointed to the EDA starting in February. Both plan on attending our January 28th meeting. I have scheduled orientation meetings with each new member and encourage any of you who would also like a refresher to feel free to set up a time to meet with me. I will also be reviewing some EDA overview materials at our February meeting. Planning Commission/Comp Plan Meeting Invite The EDA has been invited to the February 9th Planning Commission meeting to listen to a presentation by our Metropolitan Council Sector Representative Patrick Boylan on Comp Planning. Farmington's Comp Plan update will take place over the next two and a half years and is the main document that outlines Farmington's growth and vision. A reminder and any meeting materials will be sent out to both groups ahead of the meeting. State of the City State of the City has been scheduled for March 7th at 1:00 p.m. at the Ground Round. Please join Mayor Larson as he presents this annual update on the City of Farmington. 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. The Task Force has held three meetings and one open house to date. Meeting notes along with project details are available on the City's website http://www.c i.farmingto n.mn.us/Departments/Ec o no mic D evelo p/DRP.html. The next open house is scheduled in conjunction with the Farmington Expo on Saturday, January 30th from 9 a.m. —noon at the Farmington High School. A story was recently published in the Star Tribune regarding this initiative and is attached. Miscellaneous Articles Please find attached several miscellaneous articles of interest:the CDA's December Foreclosure Report, article on the recent hire of the new CDA Director, Tony Schertler—SunThisweek, December employment statistics from DEED, and coverage of the Downtown Redevelopment Plan—Star Tribune. NEXT MEETING Our next meeting is scheduled for Thursday,February 25th at 6:30 p.m. This will be our annual Organizational Meeting where officers are elected and any changes to the by-laws will be recommended for adoption. ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description o Backup Material CDA December Foreclosure Report D Backup Material New CDA Director Hired o Backup Material DEED December Jobs Report D Backup Material Downtown Redevelopment Plan-Star Tribune Fire Dakota County Comenc munity Development Ag Y CDA To: Dakota County Cities From: Maggie Dykes Date: January 05, 2016 Re: Foreclosure Update Dakota County Stats—December 2015 • #of Sheriff Sales in December—33 (compared to 65 in December 2014) • Total Sheriff Sales for 2015—555 (compared to 680 January- December 2014) • #of Notices of Pendency Filed in December—64 • #of Notices of Pendency Filed in 2015—940 A Notice of Pendency is filed by a 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 hftp://gis.co.dakota.mn.us/websiteklakotanetgis/ The Dakota County Office of GIS is updating the 2015 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) 675-4464 or send me an email at mdykesfdakotacda.state.mn.us. RipeDakota County Community Development Agency CDA Foreclosure Summary for Dakota County Sheriff Sales December 2015 City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2015 2014 Apple Valley 6 2 7 9 5 6 10 4 6 10 8 1 74 84 Burnsville 13 8 11 2 6 6 14 6 2 6 6 7 87 118 Eagan 10 3 9 7 7 9 3 7 9 7 4 3 78 86 Farmington 4 4 9 3 3 2 5 3 2 2 6 1 44 64 Hastings 5 1 3 4 2 4 4 3 2 5 1 3 37 42 Inver Grove Heights 5 6 3 8 2 2 2 4 7 7 1 3 50 53 Lakeville 10 4 5 3 6 5 6 2 10 9 5 3 68 76 Mendota Heights 0 0 0 0 0 0 0 0 0 2 0 1 3 2 Rosemount 1 3 5 2 2 1 1 1 1 2 0 2 21 36 South St.Paul 7 2 3 1 1 6 2 6 2 6 2 5 43 51 West St.Paul 3 0 5 1 1 0 1 1 4 1 2 2 21 40 Small Cities 1 3 3 1 4 2 3 1 1 2 6 2 29 28 TOTAL 2015 65 36 63 41 39 43 51 38 46 59 41 33 555 580 TOTAL 2014 72 57 50 49 74 56 62 47 52 55 41 65 680 TOTAL 2013 142 73 84 86 90 58 107 69 60 51 45 60 925 TOTAL 2012 168 123 126 171 122 120 103 132 123 117 117 103 1,525 SOURCE:Dakota County Sheriff Sales.City numbers are based on municipality address. For more information about the CDA's homeowner or homebuyer services, visit www.dakotacda.org or call(651)675-4473. Dakota County CDA hires new executive director! http://sunthisweek.com/2016/01/07/dakota-county-cda-hires-new-execut... Government Dakota County CDA hires new executive director Published January 7,2016 at 10:00 am By Tad Johnson Springsted vice president selected after nine-month search c Tony Schertler The Dakota County Community Development Agency will have a new leader as a new year begins. Tony Schertler, a senior vice president with Springsted Inc., will start in the job on Monday after his employment contract was approved during a Jan. 5 special meeting of the CDA Board. "The CDA is a premier organization that is nationally recognized and I'm humbled to be able to be a part of its future," Schertler said in a press release. "I'm excited to continue to grow the organization and the services it provides to fulfill its mission of improving the lives of Dakota County residents through affordable housing and community development." "I'm excited to have Tony on board to lead the CDA," said CDA Board Chair Mike Slavik. "He brings a lot of experience in both housing and economic development that will be helpful in planning the CDA's future strategic initiatives." Schertler's hire marks the end of a nearly year-long process to fill the executive director position after Mark Ulfers was removed from the post in March 2015. Ulfers was terminated for alleged inappropriate actions and comments. Ulfers called the allegations preposterous and unproven during a "name-clearing hearing" in October. Kari Gill, the CDA's deputy director since 1980, had been serving as acting executive director since 1 of 2 1/20/2016 9:55 AM Dakota County CDA hires new executive director http://sunthisweek.com/2016/01/07/dakota-county-cda-hires-new-execut... Ulfers's removal. Schertler,who's starting salary will be $140,000, previously worked for Springsted as director of housing and economic development services for nine years. In this role Schertler worked with clients, many of them local government units across the country, in helping them undertake complicated economic development initiatives in an environment of diminishing resources, according to his LinkedIn page. Prior to working at Springsted, Schertler worked at the city of St. Paul in the Planning and Economic Development Department for 10 years, serving as interim director on two occasions. Earlier in his career, he was a St. Paul City Council legislative aide, worked as a research assistant at the U.S. House of Representatives, and provided logistical support for a presidential election campaign. Schertler has a bachelor's degree in history from St.John's University and a Juris Doctor from William Mitchell College of Law. Filed Under: Dakota County SUNNOThisweek Advertising information I Contact Us I Subscribe Copyright©2016 ECM Publishers, Inc. •All Rights Reserved 2 of 2 1/20/2016 9:55 AM Adam Kienberger From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday,January 21, 2016 9:45 AM To: Adam Kienberger Subject: State Gains 9,100 Jobs in December 441/1/e5O_t, PRESS RELEASE For Immediate Release Contact: Madeline Koch, 651-259-7236 January 21, 2016 madeline.koch@state.mn.us Steve Hine, 651-259-7396 steve.hine(&state.mn.us State Gains 9, 100 Jobs in December —Unemployment rate at 3.5 percent— ST. PAUL — Minnesota employers added 9,100 jobs in December, according to seasonally adjusted figures released today by the Minnesota Department of Employment and Economic Development (DEED). Those figures, combined with November figures that were revised upward by 2,000 jobs, brought job gains for the calendar year in Minnesota to 42,485. Jobs grew 1.5 percent in the state in 2015, compared with a U.S. growth rate of 1.9 percent for the year. The state unemployment rate fell to a seasonally adjusted 3.5 percent in December from a revised rate of 3.6 percent in November. The U.S. unemployment rate in December was 5 percent. "The state labor market finished the year with a strong surge, adding 18,300 jobs in the final two months," said DEED Commissioner Katie Clark Sieben. "Nearly all signs point to continued growth in Minnesota in 2016." Eight of the state's 11 major industrial sectors added jobs last month, led by government with 4,300 new jobs. Other gains were posted by leisure and hospitality (up 2,800), education and health services (up 2,100), financial activities (up 2,000), manufacturing (up 1,600), construction (up 1,300), other services (up 500) and information (up 200). Sectors that lost jobs were professional and business services (down 3,200), trade, transportation and utilities (down 2,000), and logging and mining (down 500). Over the past year, the following sectors gained jobs: education and health services (up 12,680), leisure and hospitality (up 11,348), professional and business services (up 10,468), financial activities (up 4,390), government (up 3,171), construction (up 2,490), trade, transportation and utilities (up 887) and manufacturing (up 64). Three sectors lost jobs in 2015: logging and mining (down 1,380), information (down 1,103) and other services (down 530). In the Metropolitan Statistical Areas, the following regions gained jobs in the past 12 months: Minneapolis-St. Paul MSA (up 1.8 percent), Duluth-Superior MSA (up 0.5 percent) and Mankato MSA (up 0.1 percent). The Rochester MSA (down 0.3 percent) and St. Cloud MSA (down 0.1 percent) lost jobs. DEED has added a section to its website that examines the unemployment rate by demographics (race, age and gender) and looks at alternative measures of unemployment. Go here for details. DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at the DEED website (http://mn.gov/deed) or go to our Twitter account (http://twitter.com/mndeed). -30- Seasonally adjusted Not seasonally adjusted Unemployment December 2015 November 2015 December 2015 December 2014 Rate Minnesota 3.5 3.6 U.S. 5.0 5.0 Employment November 2015 October 2015 Nov. `14-Nov. `15 Nov. `14-Nov. Level Change '15%Change Minnesota f 42,485 1.5 2 ' U.S. 1.9 Over The Year Employment Growth By Industry Sector(NSA) OTY Job OTY Growth U.S. Change Rate(%) OTY Growth Rate(%) Total Non-Farm Employment 42,485 1.5 1.9 Logging and Mining -1,380 -19.9 -14.4 Construction 2,490 2.5 4.4 Manufacturing 64 0.0 0.3 Trade,Trans.and Utilities 887 0.2 1.7 I l Information -1,103 -2.1 1.9 Financial Activities 4,390 2.5 1.8 Prof.and Bus. Services 10,468 2.9 3.1 Ed.and Health Services 12,680 2.5 3.0 Leisure and Hospitality 11,348 4.6 2.9 Other Services -530 -0.5 1.3 Government I 3,171 0.7 f 0.5 Metropolitan Statistical Area OTY Employment OTY Employment Change(#,NSA) Change(%,NSA) Minneapolis-St.Paul MN-WI MSA 34,256 1.8 Duluth-Superior MN-WI MSA 687 0.5 Rochester MSA -318 -0.3 1 St.Cloud MSA -146 -0.1 1 Mankato MSA I 76 j 0.1 -30- 3 Upon request, the information in this news release can be made available in alternative formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. Minnesota Department of Employment and Economic Development Communications Office Phone 651-259-7149 ort-800-657-3858 • TTY 1-800-657-3973 http://mn.gov/deed An equal opportunity employer and service provider. A'4thte5t* Department of Employment and Economic Development STAY CONNECTED: MEI P 10 SHARE SUBSCRIBER SERVICES: Manage Preferences 1 Unsubscribe 1 Heir) DEED is an equal opportunity employer and service provider. This email was sent to akienberger@ci.farmington.mn.us using GovDelivery,on behalf of:Minnesota Department of Employment 'R,.■'Ib'' 01 g/7� and Economic Development•332 Minnesota Street Suite E-200•Saint Paul,MN 55101 •(800)657-3858 rD � ca r,ti err,,a,,r. 4 Farmington looks to re-energize its downtown-StarTribune.com http://www.startribune.com/farmington-looks-to-re-energize-its-downto... SOUTH METRO Farmington looks to re-energize its downtown The city is creating a new plan for its historic downtown with the help of residents. By Erin Adler(http://www.startribune.com/erin-adler/195633361/)Star Tribune JANUARY 22.2016-11:26PM Downtown Farmington is at a crossroads. Some residents want fewer vacancies,varied businesses and more people—an energetic atmosphere that still has small-town charm. But those living in new housing developments to the north have no reason to drive downtown.They shop in other suburbs on the commute home,favoring convenience over nostalgia. The result is a downtown in transition,ripe for revitalization,city officials said. Farmington is working with a local planning firm to formulate a blueprint to guide future development,including small projects to complete now and more substantial ones later. The key will be to stay true to downtown's past—a city center built to serve a farming community and divided by a railroad—while creating a plan that meets the needs of current residents,said Adam Kienberger,Farmington's community development director. "How can downtown remain relevant to the rest of Farmington?"Kienberger said."You Ji ••110411 /I can just let it be—or is it time for the community to proactively take a look at downtown and decide what it wants?" Kienberger is hoping for the latter,scheduling public open houses and working with a '* - ? ^i! task force to determine wants and needs.The task force will recommend a final concept a? r imelr1� RE6 ve�opment and the City Council will vote on it this spring,but the redevelopment process could witti;85 t99/a4-4)to noon Saturday take five to 10 years,he said. at the FarmingtonCommunitfxpo�a€CORES P Y& �titISPcillitl5b8t 811ainW the This first phase allots$40,000 to studying and planning.Implementation comes later. fiR s�1igiWe�ti� I'g'liaask aletgiM That price tag is typical for such a project,and it may be a bargain for cities,said Tomtls1alt�tiii�� arledts Fisher,director of the Metropolitan Design Center at the University of Minnesota. ideas. "It's not necessarily that expensive,and it can really bring a huge payback in terms of a community having a vision and a direction that can be their economic future,"he said. Brewpubs and boutiques? The plan drafted so far includes new commercial buildings and housing developments— mostly apartments and townhouses—near the Vermillion River,west of downtown. Connections to nearby trails,an open farmers market structure and a riverwalk are included as well,he said. But amid the optimism,downtown Farmington has its share of challenges. Janie Tutewohl,task force member and owner of four local businesses,recently purchased and gutted a downtown building with her three sisters to create Town Sports, a sporting goods store.Though downtown has vacancies,"there's not as much space available as it appears,"she said,since many empty structures need extensive work or *, don't fit businesses'needs. i I �. 1{ Another problem:Residents who live to the north"are not even aware of or don't fmd e downtown convenient,"Miller said. 1 of 2 1/25/2016 8:31 AM Farmington looks to re-energize its downtown-StarTribune.com http://www.startribune.com/farmington-looks-to-re-energize-its-downto... A vision of what residents want downtown is emerging,said Jeff Miller,a planner with Hoisington Koegler Group,the firm hired by Farmington.Task force members mention green space,a grocery store and coffee shop and more family-oriented businesses.A cluster of boutiques to make the area a destination has also come up,he said. Everyone has their own ideas of what Farmington needs. "I think a brewpub is in order,"Tutewohl said."I think it's really cool to think we could have some kind of music venue." Model downtowns mentioned by various community members include Hastings, Hopkins,Rosemount and Stillwater. Shakopee has recently had success re-energizing its downtown,adding 26 new businesses in three years,said Samantha DiMaggio,Shakopee's economic development coordinator. The city made a new downtown plan three years ago and is moving into implementing it,she said.The process was"excellent,but it definitely left us with more questions than answers,"she said. The implementation stage is often the hard part for cities,Fisher said.But first the city must finish its plan. "There's...a lot of hometown camaraderie in Farmington,"Kienberger said."People say, 'Yeah,we can go shop in other communities,but we really like to patronize our local businesses.'" Erin.Adler@startribune.com 952-746-3283 2 of 2 1/25/2016 8:31 AM