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03-24-16
0104, AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING March 24, 2016 6:30 PM Room 170 Todd Larson, Chair; Geraldine Jolley, Vice-Chair Douglas Bonar, Steve Wilson, Kirk Zeaman Jake Cordes, Steve Corraro 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Meeting Minutes (2/25/16 Regular Meeting) (b) Monthly Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) 5089 208th Street Reversion Amendment (b) Trident Affordable Senior Living TIF Analysis (c) Riste Lot Discussion 9. DIRECTOR'S REPORT (a) March Director's Report 10. ADJOURN 411+,4i City of Farmington c1~s 430 Third Street Farmington, Minnesota ________ 651.280.6800 -Fax 651.280.6899 .4 r,,,,n•*' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Meeting Minutes (2/25/16 Regular Meeting) DATE: March 24, 2016 INTRODUCTION/DISCUSSION Please find attached the draft minutes from the February 25, 2016 Regular EDA meeting. ACTION REQUESTED ATTACHMENTS: Type Description ❑ Backup Material Meeting Minutes (2/25/16 Regular Meeting) MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting February 25, 2016 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30p.m. Members Present: Jolley, Larson, Bonar, Wilson, Zeaman, Cordes, Corraro (7:10 p.m.) Members Absent: None Also Present: Adam Kienberger, Community Development Director, Chris Kulus, FBA President 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bonar second by Wilson to approve the Agenda. APIF,Motion Carried. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Jolley second by Bonar to approve the Consent Agenda as follows: a) Meeting Minutes—January 28, 2016 Regular Meeting b) Monthly Statements APIF, Motion Carried. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Annual Organizational Items— 1) Election of Officers—Motion by Wilson second by Cordes to retain the current status with Larson as Chairperson and Jolley as Vice-Chairperson. Voting For: Bonar, Wilson, Zeaman, Cordes,Abstain: Larson, Jolley,Motion Carried. 2) Meeting Schedule—Motion by Cordes second by Wilson to approve the meeting schedule as the 4th Thursday of each month at 6:30PM. If Thursday is a holiday the meeting would be held on the prior day. APIF, Motion Carried. 3) Acknowledge Official Newspaper—The Farmington Independent is the City's official newspaper. Motion by Wilson second by Cordes to approve the 2016 Economic Development Authority By-laws. APIF,Motion Carried. b) Downtown Redevelopment Plan Update—Director Kienberger reviewed information from the Task Force with the members. The final meeting will be held late March or early April. The EDA will have a role in the implementation of the plan. Member Wilson noted that parking is an issue that needs to be considered in this plan. Zeaman asked about the rental rates in the report. Director Kienberger stated he would look into where this information came from. c) TIF/Tax Abatement Policy Discussion When considering how to formulate these policies some discussion questions include: • For economic development TIF assistance—number of jobs to be created per dollar of subsidy (see Lakeville's policy for one example). EDA Minutes(Regular) February 25,2016 Page 2 • Wages of jobs being created with public assistance (refer to our current Business Subsidy Policy) • Completed valuation of project to receive TIF or Abatement(see Apple Valley's policy). • For a housing TIF district—maximum length of the district and affordability requirements (see Dakota County CDA's housing finance policy) • Should all costs associated with application and administration be borne by the applicant? The EDA agreed that the applicant should pay administrative fees. Staff will work with the City Administrator, Finance Director and financial advisor to create a TIF and Tax Abatement policy to bring back for further discussion. Member Wilson noted that we really need a policy in place for TIF. Discussion about policies took place with various ideas expressed. Consensus was they are all supportive of a TIF policy that shows support with minimum qualifiers. Bring sample policy to City Council and School Board for discussion. d) Trident Affordable Senior Housing TIF Request—Director Kienberger discussed the request for TIF from Trident Development. TIF is being requested for the 70 unit senior assisted living rental housing. They are requesting a 25 year TIF district for the purpose of creating and maintaining the affordable units now and into the future. The Commission is excited for the project and agrees with continuing to move this forward. 9. DIRECTOR'S REPORT February Director's Report a) State of the City—State of the City has been scheduled for March 7th at 1:00PM at the Ground Round b) EDA Board Fundamentals—Director Kienberger included some reading materials for the Commission. c) Planning Commission/Comp Plan Meeting—The EDA will be provided updates and will be asked to participate throughout the update process. d) 2016-2018 Strategic Plan for Economic Development—The EDA's 2016-2018 Strategic Plan for Economic Development was provided to the members for reference. e) Next meeting will be on Thursday,March 24 at 6:30PM. 10. ADJOURN MOTION by Wilson, second by Cordes to adjourn at 8:06PM p.m. APIF,Motion Carried. Respectfully submitted, Sue Miller Administrative Assistant (4-4,--44 City of Farmington , 430 Third Street � Farmington, Minnesota \:‘<eN.,,,Alb_ i 651.280.6800 -Fax 651.280.6899 .,, ,,a www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Statements DATE: March 24, 2016 INTRODUCTION/DISCUSSION Please find attached the monthly statements for the EDA. ACTION REQUESTED ATTACHMENTS: Type Description D Cover Memo January-March Revenue and Expenditures D Cover Memo March Financial Statement Snapshot EDA Actual vs Budgeted 2016 Object January February March April May June July August September October November December Dec YTD Dec YTD Dec YTD Account Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Actual Budget Variance 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 Intergovernmental 0 0: 0 0' 0 0 0'' 0 0: 0I 0 0 0 0 Investment Income 209 233 0 0: 0 0 0 0 0 0' 0 0 442 1,572 (1,130) Misc Revenue 0 0 0 0 0' 0 0 0 0 0 0 0 0 0 0 .;TotaRe,., es . > .k, , ,209.:' 2_,33 . frc u::k: ,4-Qkwv „t� Yjriifn r t+ .a , aN, r.h z' � 2 +,;.- a ,:r � x .0- rt3 i . u . .,,. `° m .._x c .. .' . , x �.� , , . e , . � . , ? u , :k5r�«x ..av +>x uo ,a 4s . d�vW , tx ; `� '''':'''''':'':"'V , „ . , , . . , _ _ «� .w ax _a , 6401-PROFESSIONAL SERVICES 0 0 0 0' 0' 0I. 0 0 0': 0 0, 0 0 10,000, (10,000) 6403-LEGAL 321 197' 0 0 0 0', 0I 0 0': 0: 0 0 518 3,000 (2,482) 6404-IT SERVICES 557 557 0 0': 0 0 0 0 0 0' 0 0 1,113, 6,680', (5,567) 6422-ELECTRIC 15' 20 0, 0: 0 0 0 0 0 0' 0 0 35 300 (265) 6426-INSURANCE 11 11 0'. 0: 0 0 0 0 0 0', 0 0 22 450 (428) 6450-OUTSIDE PRINTING 0 0 0 0' 0 0 01 0 0' 0' 0 0 0 2,000 (2,000) •6460-SUBSCRIPTIONS&DUES 1,515 0 0 0 0 0 0 0 0 0 0 0 1,515', 2,500 (985) :6470-TRAINING&SUBSISTANCE 11 280 0I 0 0 0 0 0 0 0 0 0I 291 3,000 (2,709) 6485-MILEAGE REIMBURSEMENT 40 0 0' 0 0 0 0 0 0 0 0' 0 40 1,000 (960) 6570-PROGRAMMING EXPENSE 0 0 0 0: 0 0 0 0 0 0 0 0• 0 13,500 (13,500) Services and Charges 2,470 1,064 0 0 0 0: 0 0 0 0 0 0 3,535' 42,430 (38,895) x aY+.. ti,x,µ`�.x .,....,. .4 :,:,. � 3.. zx,: su+,.. a 5,. ..., N... � �u.rcs;x:,. x „..,�. - �,.._ wt4�.�Y ,t ;,..... x w �^�., d 55,^� a.,.� zl , .�.._ ;:..,+c :„Ma,�:. �,. 5.. ,..r,..., ...vs .�.cz ,..x. ., ,S ..h s.d "� ..fw P.. x''�n,.....a. ^,.c .. .�..... �. ,.rc:Ya x ' ^,.,c;a,hK .. ,mss. . , r a,: .,�k ..,..., a.., ,,..., .. ~:..... , .. ,,.. ,x,.,:, ...,,.�.. ,.,, r .: r ,:,.,x a< ....u r rd.,i, ,.... .. o-....5 �..„� ~s., ea'... , 2°'h�,.. .,, .xr..�. .�,,,x' ,t P` Q Total�Ex . t . _ �. �, ..0 470 ., 064 t�.,�_.. .0, �A � ,a ,�.,� �. ,�, 'Y+' .. ....k.. 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S"1 t.... ... ..... ~r a t d ,. k c S a:':, .,E ,n,... .a:v,.,t. ,r .,.:.0 A, .a^,"6 WSk,..r � .�,f,... x,. �”.'�, i. .., ... 0.r t ,_t;. x„_.,� ._., ,., �"xkL,.,,,�..r.,,5..,..�.a ,.,.,.arc,.. ,..w,�,,�;.,, ,...be�;x . „..._x ., 3 a_ ..,a, �.�., x,# x��c.�-� �Y>*�,,,,.,,.. �;, .�,k..,,„ �. .,,.,, E�.,.��_a,x.�;..�. �, �va�. .?�r�9. ,G�a,t.:^,r ."ts" .;,�,,x.fi�,,,x,�,r` .a x:� Transfers In 3,333', 3,333 0 0 0 0 0 0 0 0 0 0 6,667 40,000: (33,333) Transfers Out 0 0': 0I 0 0 0 0 0 0 0': 0 0'. 0': 0 0 ,a.t 4h5 c nijouoe .4 k kb « »S .33i@,:µ . :.x..a.. '" k'0 � Vx . �.rc „.._rcUu,ra�a+*sb ,6 ,4 Q 4, � xx .,. �a, .rac°.z}aa. : .,",, .:a,xa,�tFw,,mo-...s .x x,_c5_ rc„ .„..�..-. rc - ..- .;* , r.,.M. ,a„ . o- aw.��a+ ,t�,x .�,...x�,.as„,aae.amu,c.,.,�,�. .,.,w.x,u s,,..w�sat i ,r, ,x.ai-„�- ~ ,.,>X.,�b�v� n-asm�x., trcs+�xka�� m�.5' .. x + ”.S �. , . ,.z..;;�xr a, ,..,tNe.0a6I �n d�alaneeaa 7 S0 , iitOt.r , � ��i� jkaxa+ M :- 1 , r ,Y�aao+Orv+ � �F . �*� an .� .`5`4,� ,.. ," s , Page 1 of 1 Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2016 2016 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH 293,169.37 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 50,000.00 2000-HRA/ECONOMIC DEVELOPMENT 2010 ACCOUNTS PAYABLE -216.83 2000-HRA/ECONOMIC DEVELOPMENT 2255 DEPOSITS PAYABLE -15,000.00 2000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -324,378.26 2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS -442.17 -1,572.00 2000-HRA/ECONOMIC DEVELOPMENT 5205 OPERATING TRANSFERS -6,666.66 -40,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 0.00 10,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 518.10 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 1,113.34 6,680.00 2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 35.25 300.00 2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 21.98 450.00 2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 2,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6460 SUBSCRIPTIONS&DUES 1,515.00 2,500.00 2000-HRA/ECONOMIC DEVELOPMENT 6470 TRAINING&SUBSISTANCE 290.70 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 40.18 1,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 0.00 13,500.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 858.00 0.00 858.00 0.00 858.00 3/21/2016 3:45:22 PM Page 1 of 1 oAR, iStreet o City of Farmington 4Farmington, Minnesota / 651.280.6800 -Fax 651.280.6899 ►�•,,MOO' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 5089 208th Street Reversion Amendment DATE: March 24, 2016 INTRODUCTION/DISCUSSION Staff was contacted by a title company last week regarding title work on a property in the industrial park located at 5089 208th Street West. This is the parcel formerly known as Just Kidding Around Daycare.A location map is attached. The property was sold to Just Kidding Around by the Farmington BRA in late 2003/early 2004 and included a reversion clause in the contract for private development which was recorded against the property. The property recently went through a voluntary foreclosure and the bank is selling it to a new owner. They are requesting the EDA Vida HRA remove the reversion clause on the deed. The City Attorney informs me all provisions of the original contract for private development were met years ago and the reversion clause was never amended. Attached is a revised deed terminating the reversion clause. ACTION REQUESTED Authorize the EDA Chair and Executive Director to sign the attached document terminating the reversion clause for 5089 2081; LLC/Just Kidding Around Daycare. ATTACHMENTS: Type Description D Exhibit 5089 208th St W Location Map D Backup Material Original Deed for 5089 208th LLC/JKA n Contract Revised Deed for 5089 208th LLC 5089 208th St W --- 11"1111111111kktimw. ' ., v-iiii,j;-:7, 0 meg it , j) ja �y k'c .. IsiiiI • 1i 4 7 , 4 . , "IIIIA. et, e 1 • Illi xi! . "?: 'la ..,tom , . ..„.,.,„ ,- '" liti ' tilt, ?Rh EE. k* IR f• ' .4,.lit. •, s .,.. 4.. ,, ....„ - lia :• tH .r 40.4 .4t. 4..446,, , ,••;01. : . NV' ., : .. . ' •4,. 0 .t ......L. {il r - J •` '4111* = - ril4:11 ,,, , . c . . 208Th S I.V/ -' #..,oho-.AL..- ,..,..+meet.. < r.•� « .. _ ,_ ! iFI: ' „-: • 1 2 ' .or A - ,f 1• �� , :• r • .. f, 'Y I 1 , } -I' ' . Z-1 te' ";,; -- ."1 T„Lu_ . :, .,,. . 1• -- .., ...,- -i - 'Nils:: ..- --- „,-.-- s; , , , , , z . . , N. a_ ,...4.0 ] • 1 4 •S -II ;PI : °Ill qtrii # •� , ,:lov; --,. p r. - li1Es • ...w March 21, 2016 1.4,800 0 225 450 900 ft r , r I I r r r . r I I 0 65 130 260 m Disclaimer.Map and parcel data are believed to be accurate,but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal,survey,or for zoning verification. 3 ; z DOC.NO. 2161153 ' 2161153 OFFICE OF THE COUNTY RECORDER DAKOTA COUNTY,MINNESOTA CQMMi:M:1r1l pq.TTILEAS TITLE,L�C CERTIFIED THAT THE WITHIN INSTRUMENT ;'' m WAS RECORDEDAN THIS OFFICE ON AND AT lDUl JAN -1 P 2: 33 ' .- a _� w JOEL.T.BECKMAN,COUNTY RECORDER -. Wit BY;__53 Deputy xaroc FEE l5'� SURCHARGE.5- W..A CASH 0 CHECKS ESCROW ":W=ate 15e etlt two and treet*Keret frt'°ka:8 • x m Alai Estate Yaks(� ( I=„t r t;a�e+3 WELL 0 CHARGE .7 Salvia°t Nisi Estate-46,-- O` _,r CHARGE TO: 0/R aiiicoae:. some PART. �' - -�--�� ` •- .F?JReierved for Recording Data) QUIT CLAIM DEED �. STATE DEED TAX DUE HEREON: $3n.t(3 Dared:ZyiUA11t S ,2004 FOR VALUABLE CONSIDERATION,the HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FARMINGTON,a public body corporate and politic under the laws of the State of Minnesota,Grantor,hereby conveys and warrants to JUST KIDDING AROUND DAYCARE AND PRESCHOOL,INC.,a Minnesota corporation, Grantee,real property in Dakota County, Minnesota,described as follows: Lot 2,Block 1, Farmington Industrial Park 208th Street Addition,according to the recorded plat thereof, Dakota County, Minnesota. Ty—R' SS1-- (.� 2(J.-)1 together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: all easements, covenants, declarations, and restrictions of record including the following: 1. all the terms and conditions of that certain Amended Contract for Private Development between Grantor and Grantee dated December 8,2003,("Development Contract")which is being recorded contemporaneously herewith,including a right of reversion; and 2. allalzoning� laws,rules and regulations. �'/The Grantor certifies that the Grantor does not know of any wells on the described RECEIVED real property. 0 A well disclosure certificate accompanies this document. .1;`,I" 0 ' 201 109600 . DA/071'ACOUNTY TREASURfA MAtTOR 0 1 am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. AFFIX DEED TAX STAMP HERE HOUSING AN I • DEVE o ' l ENT AUTHOR OF THE ' Y OF ARMIN ON By: Kevin Carroll, • ecutive Director By: L01° Todd Arey airperson STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of Ida 2004,by Kevin Carroll,Executive Director and Todd Arey, Chairperson of the Ho ing and Redevelopment Authority of the City of Farmington,a body corporate and politic of the State of Minnesota,on its behalf. Notary Public Tax Statements for the real property described in this instrument should be sent to: '1- LISA A.SHADICK :fit. e=r4== NOTARY PUBLIC-MINNESOTA Just Kidding Around Daycare and Preschool, Inc. my Contslon an.31.2O°8 try jre)r (dOCt.. ■ 1 ,Ian 4-Et#351 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Attorneys at Law 1380 Corporate Center Curve, Suite 317 Eagan,Minnesota 55121 (651)452-5000 AMP/cjh 2 (Top 3 inches reserved for recording data) QUIT CLAIM DEED Minnesota Uniform Conveyancing Blanks Business Entity to Business Entity Form 10.3.5(2006) eCRV number: DATE: DEED TAX DUE: $1.65 FOR VALUABLE CONSIDERATION,the Economic Development Authority in and for the City of Farmington,a public body corporate and politic under the laws of Minnesota, f/k/a the Housing and Redevelopment Authority of the City of Farmington,Grantor,hereby conveys and quit claims to 5089 208th LLC,a Limited Liability Company,Grantee,real property in Dakota County,Minnesota,described as follows: SEE ATTACHED EXHIBIT"A" This deed is given to state that all of the terms of the Amended Contract for Private Development between the Housing and Redevelopment Authority of the City of Farmington and Just Kidding Around Daycare and Preschool,Inc.dated December 8,2003,have been met and the right of reversion is void and no longer in effect. Check here if part or all of the land is Registered(Torrens)❑ together with all hereditaments and appurtenances. Check applicable box: Grantor ❑ The Seller certifies that the Seller does not know of Economic Development Authority in and for the City of Farmington any wells on the described real property ❑ A well disclosure certificate accompanies this By document, Its Chair ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not By changed since the last previously filed well Its Executive Director disclosure certificate File No.72521 Page lof3 Page 2 of 3 Minnesota Uniform Conveyancing Blanks Form 10.3.5(2006) State of Minnesota,County of Dakota This instrument was acknowledged before me on by (month/day/year) (name of authorized sigmer) as (type of authority) and by (name of authorized signer) as of the Economic Development Authority in and for the City of Farmington,a public body corporate and politic under the laws of Minnesota,f/k/a the Housing and Redevelopment Authority of the City of Farmington. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RANK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT Tax Statements for the real property described in this instrument should be sent to(Include name and address of Grantee) THIS INSTRUMENT WAS DRAFTED BY(NAME AND ADDRESS) 5089 208th LLC Rice County Abstract and Title Company 433 West Third St.,Suite 100 Farmington,MN 55024 Red Wing,MN 55066 Page 3 of 3 Minnesota Uniform Conveyancing Blanks Form 10.3.5(2006) EXHIBIT "A" Lot 2,Block 1,Farmington Industrial Park 208th Street Addition,Dakota County,Minnesota. Abstract Property-Dakota County,Minnesota oti�MH City of Farmington 430 Third Street Farmington, Minnesota 'Sr 651.280.6800 -Fax 651.280.6899 '�'a.,,fin' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Trident Affordable Senior Living TIF Analysis DATE: March 24, 2016 INTRODUCTION/DISCUSSION Trident Development, LLC has submitted an application to the city of Farmington EDA requesting Tax Increment Financing(TIF)for the construction of a new 70-unit assisted senior living facility with memory care south of St. Michael's Church on Denmark Avenue. The application summary materials and project rendering are attached for your reference. Stacie Kvilvang from Ehlers, serving as the city's financial consultant, will be at our meeting to review their analysis of the need for TIF assistance and provide the EDA with a recommendation. Upon making a recommendation, the EDA will be asked to request the City Council call for a public hearing. A resolution requesting this action is attached. ACTION REQUESTED Receive and discuss the recommendation from Ehlers regarding the request for TIF assistance. Upon consensus, pass the attached resolution petitioning the City Council to call for a public hearing. ATTACHMENTS: Type Description ❑ Exhibit Trident Application Summary D Exhibit Trident Site Rendering ❑ Resolution EDA Public Hearing Resolution TR!!Ø.NT Development, LLC. .3601 18th Strcet South •Suite#103 •St. Cloud,MN 56301 Phout 3}0.258.44 38•Ely 320.2'32.360 3 February 9,2016 Mr. Adam Kienberger Community Development Director Members of the Farmington Economic Development Authority Farmington City Hall 430 Third Street Farmington,MN 55024 VIA E-mail and U.S.Mail Re:BUSINESS ASSISTANCE REQUEST SENIOR ASSISTED LIVING RENTAL HOUSING DEVELOPMENT Dear Mr.Kienberger and the Members of the Farmington EDA: Trident Development,LLC is pleased to submit this request for business assistance for your consideration. The following narrative is intended to generally describe the proposed project,as well as the operations and experience of the development team. It is also intended to serve as a basis for supporting business assistance for a senior rental housing development in the City of Farmington. PUBLIC BENEFIT—As further explained below,tax increment financing for assisted living senior housing will bring an added public benefit to the community of Farmington,including but not limited to: Increase in taxable property values: The development site is currently classified as "tax exempt"and is paying no taxes at this time. The proposed new housing development will immediately increase the tax value of the site by an estimated$10,000,000. New permanent job creation: Approximately twenty(20)new full-time jobs will be created by this new business,generating personal income for Farmington residents to purchase goods and services. Satisfies market demand: The new rental units created by this development help to meet a pent-up demand for assisted living housing for elderly residents of Farmington,both market rate and subsidized housing. This allows them to remain safely in their community near family,friends and medical services. Sanitary Sewer Utility Improvement: Subject to final design of sanitary sewer and municipal water,the proposed development offers the opportunity to improve certain sewer line connections in the immediate vicinity. LOCATION—The proposed development site is located at 22120 Denmark Avenue. The subject property is currently vacant and consists of approximately 4.42+1-acres,parcel number 14-65250-00-050. During 2015,Trident worked with City to obtain a Comprehensive Plan Amendment and a Zoning Amendment to allow for the proposed project. The subject property is currently zoned R-5 High Density with a Land Use designation of High Density Residential. The subject development plan calls for 70 dwelling units on 4.42;acres,resulting in 16 units per acre density. The proposed use will conform with the zoning and land use designation. MARKET DEMAND- Trident Development authorized a market demand assessment for senior housing to identify the unmet need for senior independent,assisted living and memory care rental housing in the Farmington market area. This report was prepared by Viewpoint Consulting Group,Inc.on March 25,2015. A copy of this report is available upon request. The report identifies an unmet need in the Farmington market for 113 senior housing units projected to be captured at the subject site.The afore-mentioned demand is"income-qualified",meaning these residents have sufficient financial resources to pay"market-rate"rent. It also takes into account the demand from those seniors who require reduced rent or rental subsidies. This subsidized demand is estimated to be 26 of the 113 units of demand. DESCRIPTION OF PROPOSED USE—The proposed use is a 70-unit,senior assisted living/memory care rental housing community. The current proposal contemplates a mix of 21 studio units(memory/enhanced care),forty-four(44)one-bedroom apartments,and five(5)two- bedroom apartment units for a total of 70 dwelling units. The apartment units offer a variety of floor plans which include a complete kitchen with appliances,window treatments and washer/dryer in each unit. Apartment units range in size from 360+/-square foot studios,to 600 +/-square feet 1-BR plans to 900+/-SF 2-BR plans. The community will be professionally managed by Tealwood Senior Living of Bloomington,MN. DESCRIPTION OF IMPROVEMENTS—The current concept is designed as an"X"shaped, 3-story structure with pitched roof and prominent front entry feature. The building is wood-frame construction,slab-on-grade foundation and hydraulic elevator service. An automatic fire suppression system is provided throughout the building,which is monitored 24 hours a day. The current parking plan provides for a total of seven(7)"tuck-under"parking stalls and 51 surface parking spaces.Traffic circulation is designed to provide convenient pick-up and drop-off at the front entry.Deliveries are made at the rear of the building and emergency vehicles have access to front and rear of the building. Other site improvements include generous landscaping, fenced garden,gazebo and raised planter boxes. FEATURES AND AMENITIES—The assisted living facility will include the following features and amenities: • Meal plan and scheduled activities. • Transport van for schedules trips and transportation needs. • Library and high-speed internet access. • Beauty Salon • Spa with pedicure,massage and hydrotherapy tub. • Community room for resident parties and family gatherings. • Private dining room for special occasions. • Patient monitoring system • Controlled access entry system •___Wellness_centerwith:gym-quality_equipment PROFESSIONAL MANAGEMENT—The facility will be professionally managed by a licensed care provider,Tealwood Management. Tealwood brings over 25 years of experience in operating and managing over 50 nursing homes,senior housing and assisted living facilities. Tealwood arranges for all administrative,dietary,nursing,activities and maintenance staffing. All site improvements and building design features are coordinated with Tealwood to meet the needs of the residents and the operation of the staff. Tealwood also oversees marketing,leasing and licensing of the property. (www.twdcc.com) DEVELOPMENT TEAM—Trident Development,LLC is based in St. Cloud,MN.and has considerable experience in development and construction of assisted living communities and multi-story apartment housing. Trident is currently under construction with a 139-unit independent and assisted living facility in Chaska,MN and has successfully completed numerous apartment and townhouse developments around the state. Over the course of the last 9 years, Trident has successfully negotiated business assistance(TIF and/or tax abatement)in the communities of North St.Paul,MN, Shakopee,MN,Marshall,MN,Little Falls,MN;Princeton, MN;Delano,MN;and Sauk Centre,MN. Trident's team of real estate professionals have over 30 years of real estate experience. Trident and Tealwood work closely together in the design and detail of the assisted living facilities-to assure quality,functionality and to provide the highest level of resident care. UTILIZATION OF BUSINESS ASSISTANCE-Trident Development is requesting business assistance in the formof tax increment financing for a 70-unit a senior assisted living rental community. Specifically,a MN Section 469 Housing TIP district of 25 years,applying 90%of the increment for the business assistance. Pursuant to the requirements of such a housing TIF,the project will dedicate no less than 20%of the dwelling units(14 units)to seniors whose incomes are at or below 50%of the area median income. The 2013 AMI for Dakota County was$73,475. This development will make affordable rental housing units available to seniors with household incomes of$36,737 or less. The commitment to reserve the 20%affordable units will continue as long as the TIF district exists. In order to create and maintain the affordable units now,and long into the future,it is important to extend the term of the TIF district for 25 years. EMPLOYMENT—An added benefit of supporting an assisted living housing development is the additional jobs created by this facility. As indicated in#5 of the Project Information section,this development is projected to create approximately 20 new permanent FTE jobs. The base wages for these new jobs range from$11/hour to$36/hour. Traditionally, a Housing TIF district is created to develop and maintain affordable housing units,not to create permanent jobs, With an assisted living facility however,the affordable units are created along with the added bonus of new job creation. PROJECT TIMING—We are eager to complete the municipal approval process by the end of March 2016 and proceed with construction commencement before May of this year. This will allow the facility to open in the spring of 2017. Enclosed,please find the following enclosures: • a check payable to the City of Farmington representing the initial application deposit of $15,000.00. • A completed Application for Business Assistance. • Schematic site plan,floor plans and elevations. • Background material of the applicant • Pro Forma analysis • Pro Forma financial statement • Evidence of site control(copy of signed purchase agreement) We thank you in advance for considering this business assistance application and look forward to your comments and recommendations as we finalize our plans. Please feel free to contact me at (320)258-4438 or(612)242-6097 if there are any questions. Regards, T ' t Development,LL Roger D.OCk Sr.Vice President Enclosures C: Scott O'Brien,Trident Development,LLC CITY OF FARMINGTON Application for Business Assistance GENERAL INFORMATION: Business Name: Trident Development,LLC Date: February 9,2016 Address: 3601—18th Street South,St.Cloud,MN 56301 Type(Partnership, etc.): Limited Liability Company Authorized Representative: Roger D.Fink Phone: 320-258-4438 Description of Business: To-be-built,70-unit senior,assisted living apartment community Legal Counsel: Siegel Brill,PA—Tony Gleekel Address: 100 Washington Ave.So.Minneapolis,MN Phone: 612-337-6127 FINANCIAL BACKGROUND: I. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on any loan commitment? No 3. Have you applied for conventional financing for the project? Yes—preliminary only 4. List financial references: a. Bell State Bank,Alexandria,MN b. Home Federal Savings,Sartell,MN c. Tradition Capital Bank,Edina,MN 5. Have you ever used any business subsidy before? Yes If yes,where and when? Andover,MN in 2012; Shakopee,MN in 2014;Chaska,MN in 2015 Rev. 1.12.16 AK PROJECT INFORMATION: 1. Location of Proposed Project: 22120 Denmark Avenue. South of St Michaels Church. 2. Amount of Business Subsidy Assistance $2,000,000.00-based on 90%pay-as-you-go TIF requested? District over 25 years 3. Why the need for Business Subsidy To support creation of affordable rental units to seniors Assistance: 4. Present ownership of site: The Church of St Michael 5. Number of permanent full-time jobs created as a result of 20(estimate) Ranging from$11/hour to project. Please include projected wage levels/ranges. $36/hour. 6. Estimated annual sales: Present: Future: 7. Market value of project following completion: $10,000,000 8. Name and address of architect: Cole Group Architects,240 Park Ave.South,St.Cloud,MN 9. Anticipated start date: June 2016 Completion Date: May 2017 FINANCIAL INFORMATION: 1. Estimated project related costs: a. land acquisition $ 750,000 b.site development 1,400,000 c.building cost 8,580,000 d.equipment 1,060,000 e.architectural/engineering fee 152,300 f.legal fees 60,000 g.off-site development costs 300,000 h. financing,permits,wkg cap,conting 1,347,700 Rev. 1.12.16 AK TOTAL ESTIMATED COSTS 13,650,000 2. Source of financing: a.private financing institution $ 10,237,500 b.tax increment/abatement funds 2,000,000 c.other public funds 0 d.developer equity 1,412,500 TOTAL ESTIMATED SOURCES 13,650,000 (Should equal Total Estimated Costs) What type of business assistance requested? Tax Increment Financing X Economic Development Tax Abatement Other: Rev. 1.12.16 AK 1 I I I.1 on .on. m ."xva ' xM Y" 6i 1I> _ >r' s It Eg n ti ALTA/ACSM L AND TITLE SURVEY .. •tea ^ �mk ' I. • 1 .I i.r , rrRt.e�..w � t.«,• 1 41, ,, "•`I •-at - 11.'1n I• • ,. ,1 .: •� . -mrow.Y ,, +,, LOT E. 4 3^ I II I I . .. e<",..,.., z,� , � M . ' ST. MICHAEL.S ADDITION, `gi7LL • I �.; 11 .- ( )?,k � )* a DAKOTA COUNTY. MINNESOTA IggrI, -- . " , TRIDENT DE\%EI,OPMENT, LLC 11r r- II ; 1- --� St ---1.1 -= § a rtw a « II5- •. a. • t I .. �I I - r SQA a a.•.......�....,.. � ,+••.c s..am.e•1•..........,.•...•..>,... r I I.. Y•I t , na•w+.-..nua."«,.rrr..+n-4•••••//war....nm-o..ti wua.w w > Z r r .'a.+...."..—...-...• 0 0 t I I ,a...•..-.•......,....--.e.....,..,.- ....•Poe+ a...-....-- iss "'c 5 5141 I I t iE Via. r • • •. •.".•w•••..•1.••••en*"..r. Z O=E i. 1 11 ( x ''I t_ u ............................................•.....,••......a."•..•••••", <OUTIT E' t `r'I d :I 1 Oto ... .w.ae•o•_' :� ,>«a•,-.....•.•,.... a..•..,..«. .�•......, .-.."......a.._..,.,..• V ,11j!!8 z4 1 m....,.....................•..•."."..., 1 13,I I i I;) I]e zz;:."S,a"'W".am...r z,am"'",.a.r..., ..a..,..•..-1..wr..-•...,.,. 'r .....,......,z...r....o.am,.,.-e..•.1 w �3 j 1 .� "NO BUILDINGS EXISTING ON THE SURVEYED PROPERTY" '� "� ,W„^;; •«^,,,,, 1 W tlzs 7. t t� F- C g 0 ti b., i'. 1 Y. (;) a-..a.4•.auCwan•rw.,...n.w.ihat„ma..m.Coy, •w+."ns,•••••• /..1.°1 N o I ' E , z IAI ....�.,=r Mw .; —« «"w"—'.isiz�w rta a. W o i 1" I �st 6 I 1 I - w..,•a.a.w wma aaw a..•.w�..+. ~ 1� 2 a t .a «..-. I DRAFT LEGEND WASPS I� .I z 't- .....1•..•..a•w•• • -w.•••r.•w••••••r•.,w j I I o _��s R..ww 1 1 •..•., ••• I .G.A -a.w..LW*•••• 1 1 __ •..• ..a= ..� • I t VICINITY MAP •....�}.. ' E J j µ 1 I Ert I w --- �......wr.... oe� a iS4 I i Ii• ____,.,____ _g,./..s.=,,,,,,,,==, ..� 1, ai W,ftS x.v aMM••••F+•M 0••••/..h� ` X1 141,1-4010„4.* S•.Y.4•••••HiRww.♦ —•.......... -Y•Is .Iw.•• '/ t l TEALWOOD SENIOR LIVING COMPANY PROFILE In January 1989,Tealwood Senior Living(TW) began business by leasing five skilled nursing centers from Leonard Louis Healthcare Properties(LLHCP).TW set out on a growth strategy to acquire smaller nursing facilities in the Midwest.This strategy was prompted by the belief that the overall provision of care was better in markets where friends and relatives frequently care for friends and relatives. In 1992,TW got its first experience in the senior housing market when the principals of LLHCP acquired a 72 unit senior community in Waite Park,MN.As part of the transaction,the principals of TW were able to participate in the ownership of the property for the first time in addition to holding the management agreement. In 1998,TW formed a joint venture,TWSL,and began by managing a 256 bed nursing facility in Minneapolis,MN.TWSL's next opportunity was the design and development of an independent and assisted living community located in Eden Prairie,MN in 2002.A year later,TWSL further enhanced this community's uniqueness by opening the Transitional Care Unit(TCU).A first of its kind,the TCU is a 25 bed nursing facility focusing solely on rehabilitation services while being attached to an independent and assisted living community. Beginning in 1999,TW sought to expand its operations into a new market.TW identified a strategy for developing and constructing independent and assisted living communities adjacent to its nursing center operations. In these locations,the skilled nursing centers focused on the rehabilitation market,while the independent and assisted living facilities focused on the senior housing market. In 2001,TW partnered with LLHCP in the acquisition of an assisted living community located in Sauk Rapids, MN. Five years later,_TW was able to use its knowledge gained_to develop_a freestanding.50unit_ independent and assisted living project in Fergus Falls, MN.The community featured many of TW's design priorities:a high percentage of common spaces,full size apartments,exercise area,etc. In addition, these communities would deliver care services by TW directed staff in the resident's unit, thereby not requiring another move. Tealwood Management(TM)was formed in 2003.The principals of Tealwood Senior Living established an organization that focuses on managing its own projects and obtaining management agreements with other businesses,all while affording ownership opportunities for key staff.TW manages ten locations of its own and has management agreements with six others including freestanding assisted living communities,skilled nursing centers and larger campuses. The principals of TW partnered with Trident Development to jointly develop a project in Sauk Center,MN which opened in late 2008.This joint venture has successfully co-developed fifteen additional senior housing projects.Three new projects are currently under construction in Chaska, Edina and Andover, MN and are slated to open in the Fall 2016. Throughout their experiences,TW's focus grew from building design and clinical services to the needs and desires of an individual. In 2008,TW began a company wide focus on wellness. Utilizing the 7 Dimensions of Wellness, it has developed and implemented programs in all the communities it operates. In an effort to continually expand their knowledge of the long term care and post acute care profession, the principals of TW have made a concerted effort to become involved by serving on the board of directors both in Minnesota and South Dakota associations and nationally for AHCA and NCAL,as well as being intimately involved in strategic committees at all levels. Howie is a past Chair of the National Center for Assisted Living and presently serves as the Co-Chair of the Quality Cabinet,and Gail is a past Chair of Care Providers of Minnesota. Air I, _6 Ai I\ ill, 0 .• __ __ _ __ _ _ .... rr• __ - ___ ._ - I...- ii . J _,, — Mb; , Eu 7.1 as i: .•- we; 1 ._ r.,.r. 61110 2•1. 11 . ' . . I I r •I ED D ,. 111 r .'Ld ...,.. . . i El ,= • •'>;:r"-1 P.',. . .., ii n nn. . i I - )---f --I • , • 111 !! . , s . iii•-,-.-,--.• • ;,• . .. .1) ) ,\,, r•77, „___,.. -..4. ;a I — • _.,:•`:AcM:',,4,-; ii,,Ati.,'- aW' - --' 'ir•!: '."7:' '- '. - .' ' ''.1 ''''''' ''!.r.1._ ' v — iinsms. ,,iimmiimiims...................... ......mmima. 410:100Wjefaiiiii,Miiiiiiiiiiiiiaiiiiitaraiismit . FARMINGTON R'i b N TETI IR ,t! !2!1, , < (-los. MA NC.AND 1)1\1 1.()11.).11.N.1 ASSISTED LIVING COLE GROUP f ARCHITECTS • • • M • ftle Pat M..3.Sake I 102•IN Cloud WI Wel ' ; ; (I ('\RI (1'...'-:1116. I\C. FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY CITY OF FARMINGTON DAKOTA COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF FARMINGTON CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR THE DOWNTOWN REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 14 (A HOUSING DISTRICT)THEREIN. BE IT RESOLVED,by the Board of Commissioners(the "Board")of the Farmington Economic Development Authority,Minnesota(the"EDA")as follows: WHEREAS,the City Council(the"Council")of the City of Farmington,Minnesota(the"City")has heretofore established the Downtown Redevelopment Project pursuant to Minnesota Statutes,Minnesota Statutes, Sections 469.090 to 469.1082,inclusive, as amended,in an effort to encourage the development and redevelopment of certain designated areas within the City;and WHEREAS,the EDA is proposing the Modification of the Redevelopment Plan for the Downtown Redevelopment Project and the establishment of Tax Increment Financing District No. 14 pursuant to, and in accordance with,Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 to 469.1082, inclusive,as amended; NOW,THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on May 16, 2016 to consider the proposed adoption of the Modification to the Redevelopment Plan for the Downtown Redevelopment Project and the proposed adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-14(collectively,the"Plans")and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City,prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Plans to the county and the school district(s) in which Tax Increment Financing District No. 14 is located not later than April 15,2016. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on March 24,2016. Chair ATTEST: ikRM4 City of Farmington wZ 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 .•„ aIP www ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Riste Lot Discussion DATE: March 24, 2016 INTRODUCTION/DISCUSSION The EDA owns a small vacant lot in downtown Farmington commonly referred to as the"Riste Lot"located on Oak Street just west of 3rd street behind the Exchange Bank Building.A location map is attached. This property was originally acquired and demolished by the HRA/EDA in 2007 using a combination of CDBG funds and CDA Redevelopment Incentive Grant dollars. Over the years there has been discussion by the HRA/EDA/City Council about selling this property for private development. Staff recently fielded an inquiry about the availability of this parcel and a potential asking price. While not actively marketed for sale, staff is requesting the EDA discuss the property and provide direction on a course of action for this or future inquiries. Some additional background: This property is currently identified on the draft Downtown Redevelopment Plan and suggested to develop in conjunction with the property to the west. While this is currently a draft, input on this parcel can affect how it is shown on the final plan. The latest draft is attached. Because the EDA utilized CDBG dollars to fund the acquisition and demolition of this property, any sale for private development will trigger repayment provisions to the CDBG program. More specifically, upon entertaining a sale an independent appraisal is required to determine a current market value. If sold, 76.9% of the sale price will need to be repaid to the CDBG program(Dakota County CDA—it is at their discretion if that amount remains with Farmington). The property has a current Dakota County assessed value of $29,600. ACTION REQUESTED Review the above information and provide direction on the EDA owned Riste Lot. ATTACHMENTS: Type Description D Exhibit Riste Lot Location Map D Exhibit Downtown Redevelopment Plan DRAFT about:blank EDA Riste Lot / , ,.. • w E . ..._.. .4 .. 1 i , , : , a 11/ rifilifiliter,) , Parcel ID 147700022043 Bathrooms Status ACTIVE Garage Sq Ft Owner EDA OF Other Garage FARMINGTON Joint Owner Estimated Land $29,600 Value Owner Address 430 3RD ST Estimated Building $0 Value Owner Address2 Total Estimated $29,600 Value City/State/Zip FARMINGTON MN Special $0 55024 Assessments Common Name I-Ira Vacant Total Property Tax "$0 Site Address 209 OAK ST Date of Sale- Improved Municipality FARMINGTON Sale Value- $0 Improved Primary Use Exempt Date of Sale Vacant Use 2 Sale Value-Vacant Use 3 Total Acres 0.08 Use 4 Total Lot Sq.Ft. 3,703 Homestead NON HOMESTEAD RW Sq.Ft. Year Built 0 Water Sq.Ft. Building Type School District 192 1 of 2 3/21/2016 2:33 PM about:blank Building Style Watershed District VERMILLION RIVER Foundation Sq Ft Plat Name TOWN OF FARMINGTON Above Grade ,E 21 FT OF S 90 FT OF LOT 3 BLK 22&W 20 FT Tax Description i Finished Sq Ft I OF S 90 FT OF LOT 4 BLK 22 I Finished Sq Ft !Lot and Block E 4 22 Frame 1 Last Division 16/22/2010 Bedrooms 1. Disclaimer:Map and parcel data are believed to be accurate,but accuracy is not Map Scale Cis -fir guaranteed. This is not a legal document and should not be substituted for a title 1 inch=50 feet search,appraisal,survey,or for zoning verification. 3/21/2016 2 of 2 3/21/2016 2:33 PM I I I i PREFERRED REDEVELOPMENT CONCEPT (JANUARY 2016 DRAFT) l' / 1 L t'!•• _ willow <,.., % ;. I r A, Redestnan O — I -' I fApartrnenti- Brldge,. �\ a . �-- u d gro dParkmg� Mixedluse ERM1� , .u:, I eD�ou�i c al gor ---�1: I — — ,'i,o..,, _ A.owF—louses 00115.n9—82.90 Stones is � ( ��,�*---�A li�1Mrt5 h/- r , 1 TY 4 i Upgrade a to Streets + r Lr.== If. Rowhouses ' se Dr vewaysto Streets / ... .411 _ • -4_.- 8Usts./ 7_1,,,_,..„... .,„, , i. .11111b1IN -11, ' . Mitt i Riverwalk .tt .,� �.. � -... ___ Detached�Housing _ V. _ • [ir.-1, 11 I 4 coki_olsrYi 7, I.- � f # • - - 1 If it i r - . 1 — T i { Rpbtimen[s ---1; �P r T 1 t ries. Potential Retail Expansion 1 r 1r , LP`ik eEsrbloor --.. �S.W -. . r • , • f=sT ' f! - r -43 Units -�.. IiI I1 L7 1 4 5 f �yyyyyy------irIJIUse ,;i 1# 4 «� K I �` iGom < +/70.0.0 sa ft: T?orst 0:54 U rns 14 1 50 Potential Open -40 lo -171 ----'�' _ _ , Commercial Refurbish Fill_.__ 7- _n___,. lei, Site Design ii sto�nc Bu dngs - :� ]' I`i Improvements Farmer,.Narket_-. �illittlr�� - �' '�• - 1 LMlxe'dU_ " - -Pa Ilion_ L -� C <ai . p'R -� H sing. .-5i lNew•ommertCial , ..,;4T.,' ' ` Siigle story . .r, Y. h1 L �1� i �j :4 —sem a P[,entia140pen LIP - . 'elf o! ,L,x' 1 Space _• nil 1 I f Apartments, '' — I 1 iBP SUnrts �� I l--i i 1 3 .0:: ir �l unrliryrand P r�,k�nq - 1 ' c�__a�_ I .: T .--1 • .) r- '� - �T3 J �� Apartments+ i I B• 1 � I'Rowhouses I - L s S 1 PatentihTo^wwni .,Apa men[ 2O 111 ( r 5 ui.are I ,iiii— ,w — t Bax / Poent,al Opepi Ir I Y--- i Space) l - •,'' TowriHomes r DETACHED HOUSING { �IDg «" 12nits. 1 _a_ ATTACH EO HOUSING 1-----I —_.___ . APARTMENTS ( i.�1. 1 1 . - -..Fir, -ll FII . MI%EOUSE ! ,1 I, Y;�� ICOYYfA(nti AfSla[xlYll e . I - COMMERCIAL i "3 �..._. 1111 CIVIC ,r. _. .-a `.u t----- PARK OR OPEN SPACE T^[. T - -- (. - i / 1 6 I i' T HISTORIC BUILDINGS l i I n.tuxlxxnYaaul l i, 1i, I s. m PROPOSED RIVERWALK 1 1i ------2— EXISTING TRAIL _ - I l I I I I 4 -i_--�--- 1'� -.--- ----- : e : PROPOSED TRAIL 1 - r MID-BLOCK PEDESTRIAN �I -_.. i�--._- -_..,1 ----, { - 0 100 200 i we/its .fit WAY OR NEW SIDEWALK j / 'FEETPik ►4 ► e .1 ► alliti ©© FARMINGTON, MINNESOTA \•J HB o�FAr ►i , City of Farmington O 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 •.,,11100.46 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: March Director's Report DATE: March 24, 2016 INTRODUCTION/DISCUSSION Downtown Redevelopment Plan Update The final Downtown Redevelopment Plan open house is scheduled for Tuesday,April 5th from 5:00—6:30 p.m. at City Hall. The consultants are currently completing implementation strategies and will be making a final presentation to City Council on April 18th. Staff recently met with the FBA to discuss the EDA's interest in partnering with them on flower pots in the downtown. This has traditionally been funded by the FBA, but they are working to update their focus as an organization to provide the most benefit to their members. The FBA would like to explore new ways they can partner with the city. City Website Update Each department is currently working with city communications staff to provide content updates for the city website overhaul. In the past the EDA webpage has featured a group photo of the Board. While most advisory boards and commissions do not include a photo, I would like to get a group consensus on if an EDA photo is desired. 2016-2018 Strategic Plan for Economic Development This will be a standing item of note each month in the Director's Report. The EDA's 2016-2018 Strategic Plan for Economic Development is included for your reference. Miscellaneous Articles Please find attached several miscellaneous articles of interest:the CDA's February notice of pendency and foreclosure reports, and local area market update from the St. Paul Area Association of Realtors. NEXT MEETING Our next meeting is scheduled for Thursday,April 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. ATTACHMENTS: Type Description ❑ Backup Material CDA February Notice of Pendency ❑ Backup Material CDA February Foreclosure Report ❑ Backup Material SPAAR Local Market Update o Backup Material 2016-2018 Strategic Plan for Economic Development MEI/\ Dakota County �i Community Development Agency CDA Notice of Pendency Filings February 2016 City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2016 2015 Apple Valley 7 7 14 136 Burnsville 14 7 21 142 Eagan 7 9 16 130 Farmington 5 3 8 76 Hastings 1 2 3 67 Inver Grove Heights 3 3 6 77 Lakeville 6 7 13 120 Mendota Heights 0 0 0 11 Rosemount 1 4 5 39 South St.Paul 4 6 10 66 West St.Paul 0 4 4 49 Small Cities 0 5 5 27 TOTAL 48 57 0 0 0 0 0 0 0 0 0 0 105 940 NOTE:Notices of Pendency are filed by a mortgage company's attorney as official notification that the foreclosure process has begun.Not all of these result in sheriff sales.Numbers are based on Notice of Pendency filings with Dakota County Property Records.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. v-i- \ Dakota County Ett Community Development Agency CDA Foreclosure Summary for Dakota County Sheriff Sales February 2016 City Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2016 2015 Apple Valley 8 8 16 74 Burnsville 14 3 17 87 Eagan 5 4 9 78 Farmington 3 3 6 44 Hastings 1 2 3 37 Inver Grove Heights 2 1 3 50 Lakeville 5 2 7 68 Mendota Heights 0 0 0 3 Rosemount 2 2 4 21 South St.Paul 0 4 4 43 West St.Paul 1 3 4 21 Small Cities 0 1 1 29 TOTAL 2016 41 33 0 0 0 0 0 0 0 0 0 0 74 555 TOTAL 2015 65 36 63 41 39 43 51 38 46 59 41 33 555 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 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. Local Market Update - February 2016 A A RESEARCH TOOL PROVIDED BY THE SAINT PAUL AREA ASSOCIATION OF REALTORS® © pa a r - 26.0% - 24.2% + 23.3% Change in Change in Change in FarmingtonNew Listings Closed Sales Median Sales Price February Year to Date 2015 2016 +/- 2015 2016 +1- New Listings I 50 37 -26.0% 113 74 -34.5% Closed Sales 33 25 -24.2% 51 56 +9.8% Median Sales Price* $202,750 $249,900 +23.3% $202,750 $208,150 +2.7% Average Sales Price` $213,251 $266,342 +24.9% $210,141 $237,388 +13.0% Price Per Square Foot* $107 $127 +19.3% $106 $116 +9.6% Percent of Original List Price Received* 95.9% 97.6% +1.8% 95.6% 96.4% +0.8% Days on Market Until Sale 103 66 -35.9% 104 80 -23.1% Inventory of Homes for Sale 121 72 -40.5% -- -- -- Months Supply of Inventory 2.9 1.4 -51.7% -- -- -- , Does not account for seller concessions. I Activity for one month can sometimes look extreme due to small sample size. February •2015 .2016 Year to Date ■2015 N2016 113 50 37 33 74 25 51 56 -26.0% -24.2% -34.5% +9.8% New Listings Closed Sales New Listings Closed Sales Change in Median Sales Price from Prior Year (6-Month Average)** Twin Cities Region -«- Farmington .... +30% . +20% • iliAlte ' 0% -10% - 11111141411/4 1111V ''111:11111itl° / • : 30% - 1-2008 7-2008 1-2009 7-2009 1-2010 7-2010 1-2011 7-2011 1-2012 7-2012 1-2013 7-2013 1-2014 7-2014 1-2015 7-2015 1-2016 -'Each dot represents the change in median sales price from the prior year using a 6-month weighted average.This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. I All data from NorthstarMLS. I Powered by ShowingTime 10K. Farmington Economic Development Authority F�c R if/ w �O J� OA � qs7. " A PROIW 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 215t 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. i. 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