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06-23-16
Citi4) ‘0%. AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING June 23, 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 (5/26/16 Regular Meeting) (b) Monthly Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Downtown Redevelopment Plan- Riste Lot Update (b) TIF Policy Discussion (c) Xcel Energy Certified Site Program 9. DIRECTOR'S REPORT (a) June Director's Report 10. ADJOURN ,<tFa+uii a City of 4Farmington Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 -'•A1400111bwww.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Meeting Minutes (5/26/16 Regular Meeting) DATE: June 23, 2016 INTRODUCTION/DISCUSSION Please find attached the draft minutes from the May 26, 2016 Regular EDA Meeting. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit Meeting Minutes (5/26/16 Regular Meeting) MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting May 26, 2016 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30p.m. Members Present: Jolley, Larson, Zeaman, Wilson, Cordes, Corraro,Bonar Members Absent: None Also Present: Adam Kienberger, Community Development Director, Commissioner Mike Slavik, Dakota County, Stacie Kvilvang, Ehlers&Associates. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Jolley second by Corraro to approve the Agenda. APIF,Motion Carried. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Cordes second by Wilson to approve the Consent Agenda as follows: a) Meeting Minutes—April 28, 2016 Regular Meeting b) Monthly Statements APIF, Motion Carried. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Trident Development TIF Plan and Development Agreement—Stacie Kvilvang with Ehlers, city's financial consultant gave an overview of the development agreement. 26 year maximum TIF district, first TIF payment in 2018. MOTION by Zeaman second by Corraro to approve the TIF plan and forward to City Council for establishment of TIF District#14. APIF,Motion Carried. MOTION by Zeaman second by Wilson to approve the Development Agreement with Legacy Partners of Farmington, LLC, APIF,Motion Carried. b) Update from Dakota County Commissioner Slavik—Commissioner Slavik updated the board on the Dakota County CDA's history and strategic planning process. 9. DIRECTOR'S REPORT May Director's Report a) Downtown Redevelopment Plan Implementation—Eight bike racks have been ordered for installation in the downtown area. This furthers the goal of promoting downtown Farmington as a bike trail hub. Director Kienberger will be working with the MCCD relating to loan and/or grant programs for refurbishing downtown historic and commercial buildings. b) Open to Business Q1 Business Report—Review of the first quarter report for Dakota County. c) City Website Update/EDA Photo—Each department is currently working with city communications staff to update the website. A photo of the board will be taken tonight if there is full attendance. d) 2016-2018 Strategic Plan for Economic Development—Discussion EDA Minutes(Regular) May 26,2016 Page 2 e) Next meeting will be on Thursday, June 23 at 6:30PM. 10. ADJOURN MOTION by Wilson, second by Cordes to adjourn at 7:43PM p.m.APIF,Motion Carried. Respectfully submitted, Sue Miller Administrative Assistant AU* City of Farmington Z 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 r.Aale www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Statements DATE: June 23, 2016 INTRODUCTION/DISCUSSION Please find attached the monthly statements for the EDA. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit January-May Revenue and Expenditures D Exhibit June 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 0 0 0 0 0 Investment Income 209 233 258 238 0 0 0 0 0 0 0 0 938 1,572, (634) Misc Revenue 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenue ;'; 209 233 258 238 0 9 0 `.. 0 . 0 0 0:.; ,0, 938` ,1,572 '` f� (834) 6401-PROFESSIONAL SERVICES 0 0 0 0 0 0 0 0 0 0 0 0 0 10,000 (10,000) 6403-LEGAL 321 197 0 1,419 0 0 0 0 0 0 0 0 1,937 3,000 (1,063) 6404-IT SERVICES 557 557 557 557 557 0 0 0 0 0 0 0 2,783 6,680 (3,897) 6422-ELECTRIC 15 20 19 20 20 0 0 0 0 0 0 0 94 300 (206) 6426-INSURANCE 11 11 8 10 10 0 0 0 0 0 0 0 50 450 (400) 6450-OUTSIDE PRINTING 0 0 0 0 0 0 0 0 0 0 0 0 0 2,000 (2,000) 6460-SUBSCRIPTIONS&DUES 1,515 200 0 0 0 0 0 0 0 0 0 0 1,715 2,500 (785) 6470-TRAINING&SUBSISTANCE 11 280 295 40 35 0 0 0 0 0 0 0 661 3,000 (2,339) 6485-MILEAGE REIMBURSEMENT 40 0 38 65 0 0 0 0 0 0 0 0 143 1,000', (857) 6570-PROGRAMMING EXPENSE 0 0 5,545 2,880 0 0 0 0 0 0 0 0 8,425 13,500 (5,076) Services and Charges 2,470 1,264' 6,462': 4,991 621 0! 0' 0 0' 0 0 0 15,808 42,430 (26,622) h , } t+ y .6. , s.rk.. • • ..,;,,,,,,,,,,'„',.&.1,1""Y,..,-.',..., ., .,:' r .` a::.:. J. F.x..., r,. ..:. m.v,..., x ,,az....� ...... .. ..�,. Tota:Ex :;. ,.„. ,.. 2 70 .,..,,1 264,.t6 462.' 4 991 i1 ,821 m,; .« , 0. .0,.,,. ... .,, :0 . : ,. '',:, t '; a,., >� s i.. p ,4 ;; , ..,, 0 m,. "2,...,,,,,,, T 0 0< <.0� 5,808 "42,43 = .� �(28,6 e" ... .„'�. ...x xw � _,. ...a.�? Fs= .dJ'A . „,:. x., .. ,. k„ x '„', ,g:',...4,-..:' ,S � ,. � u ��° Transfers In 3,333 3,333 3,333 3,333 3,333 0 0 0 0 0 0 0 16,667 40,000 (23,333) Transfers Out 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ri 3 . „to 333 33,G..3 �3xx�33x , 3333....M,� �0 Q ; t0 ..p`�r� , r.�0 ..r0 <�.. ; � 5�,- , ;�� Q .:r,16°$67 ., 40, 00�} `#,. . '`,.. �.,2 } 333)i)therFinancln Souces. .,,�, ;-......'.''',, ,,..-7.,•f-':-',..”' x, V , 3 .' 7 . �. , , � �.7 .„ , .. > 1 . . , ✓.x? L. ..: a 1.,.° ; r , „,.^. n . x d ,, , ..°{ „ ^Nn.h. ,' ,.„,?:,.2,,,;E4,k; , , .s,.': I &4,.,...,,r ., .„ r ,ry ,..<.. 1.,. rrxt. „,:” ,, xi' ¢ ,n,; x, :Z ' '.,:':'-. ” , , tiN v s, vhx, 'l x , 4 °M1, P tch n und�Bal ce- 1;° 2•-, 2 0 ;1 419 � � ��: ang®:� P ..,. .a� ..,072 �2,30 .;( ,87 l�`�•5 �w �2,772.ri=�x „0, .�' 0 �_� ..�..,0,. �,�t,� r. 0 r�. .0.,.> A. L.1.,79B �(85fl).;��r'=�. ,. x�,. ;:,;'74,654 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 285,079.63 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 50,000.00 2000-HRA/ECONOMIC DEVELOPMENT 2010 ACCOUNTS PAYABLE -191.88 2000 HRA/ECONOMIC DEVELOPMENT 2255 DEPOSITS PAYABLE -8,713.12 2000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -324,378.26 2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS -937.91 -1,572.00 2000-HRA/ECONOMIC DEVELOPMENT 5205 OPERATING TRANSFERS -16,666.65 -40,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 0.00 10,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 1,937.30 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 2,783.35 6,680.00 2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 94.37 300.00 2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 50.26 450.00 2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 2,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6460 SUBSCRIPTIONS&DUES 1,715.00 2,500.00 2000-HRA/ECONOMIC DEVELOPMENT 6470 TRAINING&SUBSISTANCE 660.69 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 142.72 1,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 8,424.50 13,500.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 858.00 0.00 858.00 0.00 858.00 6/17/2016 10:18:32 AM Page 1 of 1 yo�cFA ►i� City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 .,,,,,,,w+' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Downtown Redevelopment Plan-Riste Lot Update DATE: June 23, 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 HHRA/EDA/City Council about selling this property for private development. Staff recently fielded an inquiry about the availability of this parcel and would like to discuss a proposed concept in greater detail. Some additional background: This property is identified in the Downtown Redevelopment Plan and suggested to potentially redevelop in conjunction with the property to the west. The Illustrative Downtown Redevelopment Plan map 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 market value/sale price will need to be repaid to the CDBG program(administered by 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 ❑ Exhibit Illustrative Downtown Redevelopment Plan Map ❑ Exhibit Riste Lot Location Map i i ILLUSTRATIVE DOWNTO..• WN REDEVELOPMENT PLAN ,A 1 ,�� i 1 �_ r , 1, 14, ,y �' wilco J� " �'�fr , N w- VERM �; ���� • Q I— o,. • r . ___.. AI,7 •LO, Tirmor,....Apieligt i!. OM – 11 i.,:o loi Oil . E 11( •I. _.......L. ..: Is: - °--7.7 f------- C . . i i _ ., . 4,,,:ac;g:gp. --91%) IL 7 3 ;:)i II 87 G' i : ,1 H 1 1 r� H _; I , i I gra . ' I I LL1 M . l X11 II I K I -- .11;111711.1 a w i _ I Q_4111114 r L� D B1 1 1 a ' ' I D _ c.— G' T •� REDEVELOPMENT STRATEGIES P H H• ��a� A.Retmbnh current vacant hlstonc&other — ' a _ ._. i Bfilcommercial sulbuldmp -"" .a - "� B 11" _ ,1-11 L!:; 1 T . municipal eson irons ments downtown CIVIC' _ I :. manic pal desY ations in do n[Dwn a ,� � E; • 1 C Redevelop vacant&uMem(lized sites o Add&improve outdoorpubl"N space in • ' i r r the downtown core tor events&infonna 1 - 'H ---- ---� - gathering places '..,r"t—--- � (E----- E 41 - ' 1 1 1-- E. Improve pedestrian environment I` I. Addkeydowntowncoreblketrail ' W- -� t i---.-- i i 1 f Add dke downtown I:the nverail d I 1, I regional trail network 1,111 a B I J 1 1 n JI G.Create complete downtown trail network • F ' A ..�..JJ1.��. M —H.Add outdoor places for seating& L. gathering along 3rd St&Oak St. J I Improve Highway 50coci ngs for •� +� - - rTh.—. _Z S -„No _.__--__ pedestrians and bicyclists r �' r r I Optunlx pubR padn a 3n-street&:R I /1""�'-- -.`. ' [{ft I__I 6 1sP u ' j -c i street I B r—r-T T--. R. Strengthen downturn entry identtry and , / — waybnd-Ing 1 r'. �` B – _L Redevelop sites to provide new housing . - I E. c - -- — _ - options hi Farmington —. r' __- l 1 _,a M.Improve design of existingcommercial 'G utes on Hwy 50 E —� i _ i `iwW J IF.:N.Expand Rambling ANer Park ' ,I ! / !I +!j}� 'VI I0 Create a nverwalk ! Li IfY !1 • S P Add a pedestrian bridge E ' JUL' --0. AnersideWest - i 1 /w wA -' — aa R. Riverside North `4. �. ural _— �_ t _.. _ -- -' y DETACHED MOUSING _ / 1 1 ATTACHED HOUSING / ; , 1 APARTMENTS alli , r NI "alEw:mr.MMMNrm ' it— Ig rt IN COMMERCIAL V ■ CIVIC —_ 1I 1 II --__—. ._ erTfe/:t ir(.. r" PARA OR OPEN SPACE 1 HISTORIC BUILDINGS ' 1 . F—I Imo.MIAOW r" PROPOSED RIVER WAIN C} (n y i I I f —� LOCUS EXISTING TRAIL •J a N ^ F ' e.:. PROPOSED TRAIL NETWORK 4 PROPoSFD DOWXiOWM(ORF An I - _--- iRAlt(OXXF(lION -- ._._..._ n,,v,,,nrors....voe § 0 100; 200 X400---- 4 XFW SIDFWAIA , ^-- 'FEET about:blank EDA Riste Lot '/. 11°- �` _ ire ' 7` y ./4 / „ • ,. . . 1 p I I44, i .. ,► 1 a di lig 04 ; srr � .. imirr Parcel ID 147700022043 ;Bathrooms Status ACTIVE Garage Sq Ft Owner EDA OF Other Garage +FARMINGTON e Joint Owner Estimated Land $29,600 I Value Owner Address 430 3RD ST Estimated Building $0 Value Owner Address2 Total Estimated $29,600 Value FARMINGTON MN i Special City/State/Zip $0 155024 Assessments Common Name Hra 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 j 1 of 2 3/21/2016 2:33 PM about:blank Building Style 1 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 Finished Sq Ft OF S 90 FT OF LOT 4 BLK 22 Finished Sq Ft I Lot and Block 4 22 Frame Last Division 6/22/2010 Bedrooms Disclaimer:Map and parcel data are believed to be accurate,but accuracy is not Map Scale ?„ ' y 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 �otiEAi� City of Farmington 0 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 `-.A r www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: TIF Policy Discussion DATE: June 23, 2016 INTRODUCTION/DISCUSSION In conjunction with a recently approved application for TIF assistance, we are beginning the process of developing more comprehensive policies for existing financial assistance tools. These policies will help guide future EDA decisions and allow for additional taxpayer dollar accountability. TIF is one of the most powerful economic development incentive tools available to cities in Minnesota. This tool is very closely regulated and strictly defined in Minnesota State Statute. Currently the EDA makes business assistance decisions solely on the city's Business Subsidy Policy which we revised in April of 2015. A copy of this document is attached. When considering how to formulate these policies discussion questions include: • For economic development TIF assistance—number of jobs to be created per dollar of subsidy Wages of jobs being created with public assistance • Completed valuation of project to receive TIF For a housing TIF district—maximum length of the district and affordability requirements Costs associated with application and administration to be borne by the applicant Based on our previous discussions and recent successful completion of a new housing TIF district, I have attached a draft TIF policy for discussion and consideration. Prior to seeking City Council approval, this draft policy should be reviewed by the City Attorney and amended as required. ACTION REQUESTED Review the attached information and prepare any questions for discussion. ATTACHMENTS: Type Description ❑ Exhibit DRAFT TIF Policy ❑ Backup Material Farmington Business Subsidy Policy FARMINGTON TAX INCREMENT FINANCING POLICY DRAFT—June 2016 1.0 PURPOSE 1.01 For the purposes of this document,the term"City" shall include the Farmington City Council and Farmington Economic Development Authority(EDA). 1.02 The purpose of this policy is to establish the city of Farmington's position relating to the use of Tax Increment Financing(TIF) for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax increment assistance. 1.03 The City is granted the power to utilize TIF by the Minnesota Tax Increment Financing Act, as amended. The fundamental purpose of tax increment financing in the city of Farmington is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. 1.04 The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on City services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of business assistance to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City can deviate from this policy for projects that supersede the objectives identified herein. 1.05 Though the EDA has expressed support for the use of TIF as needed, the EDA may reject any TIF application prior to consideration by the Farmington City Council. 2.0 OBJECTIVES OF TAX INCREMENT FINANCING 2.01 Tax Increment Financing (TIF) uses the increased property taxes generated by new real estate development within a tax increment district to pay for certain eligible costs associated with the development.As a matter of adopted policy,the City will consider using TIF to assist private development projects that will achieve one or more of the following objectives: a. To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. b. Projects that provide value in the forms of needed transportation and other utility infrastructure improvement that would be completed in conjunction with the project. c. To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off' development. Farmington Tax Increment Financing Policy rev. 6.23.16 d. To facilitate the development process and to achieve development on sites which would not otherwise be developed but-for the use of TIF. e. To remove blight and/or encourage redevelopment of commercial and industrial areas in the city of Farmington that result in high quality redevelopment and private reinvestment. f. To offset increased costs of redevelopment(i.e. contaminated site clean-up) over and above the costs normally incurred in development. g. To create opportunities for affordable housing. h. Projects that improve the quality of life in the city of Farmington by providing a desirable good or service and address an unmet demand in the community. 3.0 POLICIES FOR THE USE OF TIF 3.01 At all times, procedures and policies related to the proposed or actual approval of TIF usage will comply with the state laws. 3.02 The project must be in accord with the city of Farmington's Comprehensive Plan and Zoning Ordinances to secure assistance. 3.03 The use of TIF may be a"business subsidy" as defined by state law. In these cases,the use will comply with the requirements of applicable statutes and the city of Farmington's Business Assistance Policy. 3.04 The following general types of TIF districts may be established: a. Redevelopment District b. Renewal and Renovation District c. Economic Development District d. Housing District e. Other types of TIF districts, along with specific criteria, may be considered on a case by case basis. In addition to these districts,the City may also consider the creation of TIF Districts as authorized by applicable legislation. 3.05 When possible, TIF shall be used to pay for the costs of public improvements associated with a project, including but not limited to streets, sewers, storm water control,water, public parking lots and structures, lights, fiber optic infrastructure, transit and transportation, energy technologies, and publicly owned infrastructure. 3.06 TIF shall generally be used to reimburse the developer for eligible costs on a"Pay as You Go"basis. The City shall have the option to issue a TIF note with or without interest. The principal amount of the TIF note will not exceed the amount of eligible project costs incurred and documented by the developer. The developer shall be required to provide written receipts that show costs eligible for reimbursement have been paid. In all cases, TIF payments shall be based on available increment generated from the project. TIF payments shall be made after collection of property taxes. Farmington Tax Increment Financing Policy rev. 6.23.16 3.07 The applicant is required to retain and be assisted by qualified professionals, e.g. accountants, legal counsel, etc., separate and independent from the EDA. 3.08 TIF shall not be used for projects that would place extraordinary demands on city services or for projects that would generate significant environmental impacts. 3.09 Construction of an eligible project shall not commence until the City has given final approval to the application for financing and the TIF district has been established, if required. 3.10 The City reserves the right to deny any application for financing at any time prior to final execution of a business subsidy agreement or development agreement,whichever applies. 3.11 The EDA shall be reimbursed by the applicant for all its costs related to the request for TIF. At the time of application, the applicant will deposit with the EDA an amount as determined by the EDA as necessary to cover all costs incurred by the EDA in connection with the proposed project. a. The amount of the initial deposit shall be determined by the Executive Director of the EDA. b. The fact that the applicant's deposit is accepted by the EDA is not to be construed as a guarantee that the EDA will authorize the project. c. The EDA may request and the applicant shall be responsible to pay any additional amounts as determined from time to time by the EDA, should associated costs exceed the initial deposit. 3.12 All applications and supporting materials and documents shall become the property of the EDA, and, as such, are subject to the Minnesota Data Practice Act. 3.13 The EDA reserves the right to select a third party to assist in the management of the TIF process. 3.14 All TIF proposals must take into account the direct costs to the City and county and how those costs will be addressed. The applicant shall pay all permits and fees normally charged by the City as part of the subdivision or building permit approval. 3.15 The EDA will reserve up to 10%of all TIF funds to pay the EDA's administrative costs. 4.0 PROJECT QUALIFICATIONS 4.01 All TIF projects considered by the City must meet the following requirements: a. For Economic Development TIF Districts, new construction of a minimum of 5,000 square feet. b. For Economic Development TIF Districts,the minimum creation of one new or retained full time job per$25,000 of TIF provided. Farmington Tax Increment Financing Policy rev. 6.23.16 c. The developer shall demonstrate that the project is not financially feasible but-for the use of TIF. d. The project must be consistent with the City's Comprehensive Plan, Land Use Plan, and Zoning Ordinances. 4.02 The project shall serve at least two of the following public purposes: a. Creation of jobs with livable wages and benefits, per City's Business Subsidy Policy. b. Increase of tax base. c. Enhancement or diversification of the City's economic base. d. Industrial development that will spur additional private investment in the area. e. The project contributes to the fulfillment of the City's development or redevelopment objectives. f. Removal of blight or the rehabilitation of a high profile or priority downtown site. 5.0 SUBSIDY AGREEMENT AND REPORTING REQUIREMENTS 5.01 All recipients of TIF assistance from the City shall be subject to the provisions and requirements set forth by state statute. 5.02 All recipients of TIF assistance shall enter into an assistance agreement with the City that identifies the reason for the assistance, the public purpose served by the assistance,the goals of the assistance, as well as other criteria set forth by state statute. 5.03 The TIF assistance agreement may be amended from time to time as the parties may agree. Any such amendment must be in writing and signed by both parties. The TIF assistance agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. The TIF assistance agreement shall be recorded in the office of the Dakota County Recorder or Registrar of Titles. 5.04 All recipients of TIF assistance shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and the assistance agreement have been met. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the City within 30 days of meeting the requirement. Farmington Tax Increment Financing Policy rev.6.23.16 FARMINGTON BUSINESS SUBSIDY POLICY 1.0 PURPOSE 1.01 This Policy is adopted for purposes of the Business Subsidies Act(the"Act"),Minnesota Statues, Sections 116J.993 through 116J.995. Terms used in this Policy are intended to have the same meanings as if used in the Act, and this Policy shall apply only with respect to "subsidies"as defined by the Act if and to the extend required thereby. 2.00 POLICY 2.01 The City of Farmington and the Farmington Economic Development Authority maintain several policy documents which speak to the general goals and objectives for the provision of public assistance for private development or redevelopment activities. These documents include, but are not limited to the current Strategic Plan for Economic Development and the Comprehensive Land Use Plan. 2.02 The City of Farmington has determined that in order for any project to be considered for financial assistance, a fmding is needed that determines that, "but for"the City's assistance, this project will not occur or will not occur within a reasonable amount of time. The City will also need to demonstrate a return on its investment based on one or more of the public benefit categories listed in this Policy. 2.03 Because projects vary greatly in structure and public benefit derived, each project will be considered on its own merits. Consideration will be given to projects providing public benefits in one or more of the following categories: a. The creation of new jobs/increase in total payroll. In the case of new job creation, new jobs must pay an average wage equal to the minimum wage level for business assistance programs administered by the Minnesota Department of Employment and Economic Development for cities located in the seven county metropolitan area in place at the time of an application by any business seeking a subsidy. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. b. Projects that provide value in the forms of needed transportation and other utility infrastructure improvements including regional infrastructure in the community that would be completed in conjunction with the project. c. Redevelopment projects that result in the stabilization of business districts or neighborhoods by elimination of blighting conditions. d. Projects that enhance or increase the economic diversity of the community by attracting businesses or industries not currently located in the City. New job wage requirements will apply to any new jobs created. Farmington Business Subsidy Policy rev.4.20.15 e. Projects that result in the development of affordable senior or workforce housing. f. Quality of Life based on business/projects. Those business/entities that provide a desirable good or service and address an unmet demand in the community will be considered. New job wage requirements will apply to any new jobs created. g. Retention of existing jobs. To be considered under this category, it must be demonstrated—to the satisfaction of the City-that the loss of jobs is specific and can be demonstrated. 2.04 If a particular project does not involve the creation of jobs, but is nonetheless found to meet another public purpose of the City it may be considered without any specific job wage goals, as permitted by Minnesota Statutes. This public purpose has to be something other than an increase to the City's tax base. Other measurable, specific and tangible goals must be established. Examples of tangible goals may include redevelopment or clean-up of a contaminated site or increased tourism. 2.05 Each project shall not only be evaluated against the Business Subsidy Policy but also against other applicable City of Farmington or Economic Development Authority policies, including the Comprehensive Land Use Plan, current Strategic Plan for Economic Development. The level of assistance to be provided for any project is at the discretion of City of Farmington. 2.06 Because it is not possible to anticipate every type of project which may in its context and time present desirable community building or preservation goals and objectives, the governing body must retain the right in its discretion to approve projects and subsidies which may vary from the principles and criteria of this Policy. The burden will be on the applicant to demonstrate,to the satisfaction of the City of Farmington,that the public benefit justifies the requested subsidy. 2.07 In all cases of business subsidy, where the subsidy is equal to or greater than the threshold prescribed in Minnesota Statutes, a subsidy agreement will be entered into between the City and the recipient. This agreement will delineate the subsidy structure and amount, as well as the expected public benefit. The agreement will include provisions for repayment and other resolution options if the expected public benefit is not achieved. Upon completion of the project, the actual costs of the elements of the project eligible for the business subsidy will be verified. All business subsidies will be subject to the criteria outlined in Minnesota Statutes, Section 116J.933 through Section 116J.955 except those subsidies as exempted by same. Farmington Business Subsidy Policy rev.4.20.15 CM City of Farmington 430 Third Street cak Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ►..OM`s www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Xcel Energy Certified Site Program DATE: June 23, 2016 INTRODUCTION/DISCUSSION Staff was recently contacted by Xcel Energy about a new program they are partnering with cities on to promote sites for economic development. They are creating a Certified Site program similar to DEED's Shovel Ready program so that individual sites within Xcel's service territory are actively promoted as a part of their economic development efforts. This program fits within the strategies outlined in the EDA's marketing plan and also can fit within our 2016- 2018 Strategic Plan for Economic Development under priority number three: 3. Explore plans for acquiring land for new industrial development I have attached the related materials and will provide some additional background and discussion points at our meeting. ACTION REQUESTED Review and discuss the above information related to this potential new initiative. ATTACHMENTS: Type Description ❑ Exhibit Certified Site Program Summary Xcel Energy® 3000 Maxwell Newport,MN 55055 RESPONSIBLE BY NATURED June 15,2016 Adam Kienberger,City of Farmington 430 Third Street Farmington,MN 55024 Dear Adam: Xcel Energy is excited to announce we have initiated a Certified Site program for our service territory in Minnesota. We believe that this program will deliver significant value to the economic development efforts occurring within our service territory and your community. Companies undergoing expansion and relocation,along with their site selection consultants,agree that having certified sites has become an increasingly valuable tool in the corporate site selection process for both expansions and new greenfield locations. Given the ever-increasing pace of site selection projects,having a portfolio of certified sites (and effectively marketing them nationally and internationally)has become essential in economic development preparedness and industrial site marketing. Site Certification Project Overview Xcel Energy's overall concept,intent and mission for the proposed certification project is to identify and market sites within its service territory that can retain,expand and attract select commercial and/or industrial businesses that will create jobs and investment for the area. Our goal for this effort is to certify approximately 10 sites in the Minnesota service territory by October 2016,and then develop and execute a national and international marketing plan for those sites shortly thereafter. While the program is intended to be flexible,the types of industries or functions likely to be targeted for the certified sites include,but are not limited to: • Data Centers:large enterprise and medium sized centers • Manufacturing:heavy and light(emphasis on high number of jobs) • Food processing • Distribution centers While site requirements and parameters will be somewhat flexible depending on the area's industry fit and focus,they are generally as follows: • Minimum 25 acres of contiguous and developable site • Single ownership or a coalition of landowners represented by a single representative • Quick and convenient access to a four-lane highway(preferably interstate) • All utilities-electric power,natural gas,telecom/fiber,water,and sewer service in place or nearby and readily extendable,but not impeding development(that is,not bisecting the site in a manner that limits development) • Appropriate zoning in place or easily attainable • Rail access not required,but is preferred for heavier manufacturing and processing operations • Within close proximity to sufficient workforce and business/service amenities The attached site information tool and application document details the specific information that is required and will be reviewed for inclusion of sites into our certification and marketing program. We are asking that local economic development and related organizations and departments work with the various utilities(including Xcel Energy for electric power information)and other service providers,along with the Minnesota Department of Employment and Economic Development(DEED),to help gather the data necessary to certify the sites. Once a short-list of potentially qualified sites has been identified,our team will contact you and arrange to conduct brief field inspections of the top proposed sites.The objective of the field due diligence is to inspect and provide a visual verification of the key physical attributes of the site candidates,and activities are likely to include: • Visual and walking site inspections to review access,infrastructure support,image, topography,adjacent uses,access to transportation networks,workforce,business services/amenities,etc. • A meeting with site owners to discuss vision,concerns,possible terms and conditions • A meeting with local officials to discuss site infrastructure,zoning,permitting,taxes, regulations,and local support Thank you in advance for your participation and assistance in this important program that we believe will deliver great value to your community's economic development efforts We look forward to working with you and partnering to expand our collective economic development outreach. Kind Regards, Jake Sedlacek Manager,Economic Development ���FAR�►i„� City of Farmington U z 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ��►►•„„p, www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: June Director's Report DATE: June 23, 2016 INTRODUCTION/DISCUSSION Trident Senior Living/Legacy of Farmington Trident Development received its final approvals for the creation of a new housing TIF district at the City Council meeting on June 6.A development agreement is scheduled to go to City Council for approval on July 5. We look forward to welcoming this new development to Farmington. 2040 Comp Plan Update Staff recently learned that the city is eligible for grant funding through the Metropolitan Council to assist in completing our Comprehensive Plan Update. On June 20 City Council will consider a request to approve a resolution authorizing staff to apply for this grant. As a reminder, the Comprehensive Plan is a document that accomplishes the following: • Establishes a vision for the community; • Reflects regional policies and important local goals and objectives; and • Serves as a compass or resource guide for the development of the community. The 10 year Comprehensive Plan cycle officially started when the Metropolitan Council issued System Statements for every community in the 7-county metropolitan area. The city received its system statement on September 17, 2015. The system statement is a customized document for each community that informs how the community is affected by the Metropolitan Council's policy plans for regional systems and to assist in amending its Comprehensive Plan. The System Statement includes forecasts for population, households, and employment as well as provides affordable housing goals. Once the System Statement has been issued, communities have 3 years to complete the update and have it approved by the Metropolitan Council. 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:Farmington Independent article on the new BlueNose Coffee business, and DEED's May Unemployment Report. NEXT MEETING Our next meeting is scheduled for Thursday,July 28 at 630 p.m. ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Backup Material June Director's Report Articles BlueNose brings custom coffee to Farmington I Farmington Independent http://www.farmingtonindependent.com/news/business/4051375-b1... INDEPENDENT FARMNGT0N BlueNose brings custom TRENDING coffee to Farmington i. Graduation day for the class of 2016 By Nathan Hansen on Jun 10,2016 at 5:59 a.m. 2. BlueNose brings custom coffee to Farmington 3. Police report: May 20-26 ir 4. Highway 3 construction starts June 13 5. City will bring two bond questions to t ' M voters ! ,c,' ''-' - 1; •i itrzb,, , ,--- ;' il,,,.-._ ______ `' �� wx lk ' more , o' ( (, LATEST rM Vs a - Police report: May 27-June 3 'AIt,,� =., a,. 4 hours ago� �<.. — ----- --- ------------------- Nathan Hansen: Know when to fold 'em yourself 4 hours ago Tim Aylward has two babies in his life right now. Deanna Weniger:Ad nauseam There's the 5-month-old child at home, and the 17 hours ago soon-to-be-born coffee shop he hopes to open next Faith notes: What does redemption mean? 1 day ago week in Farmington. Graduation day for the class of 2016 1 day ago BlueNose Coffee (https://www.facebook.com/BlueNosecoffee more /?fref=ts) , which will be located in the former Dunn Bros. space at 20700 Chippendale Ave., has come together quickly for Aylward. After four years learning the business at Coffee and Tea Ltd. in the Linden Hills neighborhood of Minneapolis, he was looking to go out on his own. When Farmington's Dunn Bros. closed last month, a broker brought the space to Aylward's attention. He took possession in the middle of the month, and has been busy ever since. There's new paint on the walls and he was scheduled to get new carpet on the floors this week. The old tables and chairs will remain, but they will be gradually 1 of 3 6/13/2016 10:33 AM BlueNose brings custom coffee to Farmington I Farmington Independent http://www.farmingtonindependent.com/news/business/4051375-bl... phased out. Aylward wants the space to have a HOT JOBS jobsHQ\y". different look than it did in its former life. Machinist-START at$19-$21mour. Immediate first shift opening for a full time experienced Part of that will be the coffee. Coffee and Tea Ltd. machinist,starting hourly rate$19.00-$21.00/hour. was one of the first small-batch coffee roasters in the Automotive Finance/Insurance Mgr.-Guaranteed... Johnson Ford of New Richmond,Inc-New Richmond, country, and Aylward is bringing that approach south. WI$80,000 a year Johnson Motors,Incorporated a He will have shelves lined with jars of different coffee Office Assistant beans, and he will roast all of them in the big, red The City of Prescott is seeking a part-time office assistant for 25 hours per week Primary duties include roaster in the front of the shop. That roaster will be RN Manager-Surgery one of the few holdovers from the shop's former life. Welcome Home to your best YOU!Are you passionate about patient care?A born leader and a team player? Executive Director There will be separate shelves of loose-leaf tea. GREAT OPPORTUNITY!EXECUTIVE DIRECTOR Bismarck Cancer Center,a radiation oncology clinic in At BlueNose, the goal will be to connect each drinker FEATURED EMPLOYER with his or her ideal cup of coffee. To do that, Aylward will talk with people about what they like. He'll match Alp Essentia Health the person to the bean, and the bean to the roast. There are a lot of variables there. Similar beans can taste very different depending on where they're grown, and one year's crop from a given location can EMPLOYERS taste very different from what grows the following List a job for as low as$99.95. year. Top Ads Aylward takes pride in his ability to give people VIEW ALL TOP ADS exactly the cup of coffee they want. He has had -- - couples come to him with seemingly incompatible tastes in coffee, and he's helped them find something they both enjoy. He expects to have 20 or 30 varieties on hand at any given time. "I love connecting people with coffee that they really love," he said. That's a skill Aylward has developed over the past four years. He's been a coffee drinker much of his life, but he didn't know the intricacies of the drink until he started his former job. The more he learned, the 2 of 3 6/13/2016 10:33 AM BlueNose brings custom coffee to Farmington I Farmington Independent http://www.farmingtonindependent.com/news/business/4051375-b1... more he felt like he wanted to be the guy in charge of everything from buying the beans to doing the roasting to working with the customers. "It was just time," he said. "At a certain point you want to do your own thing." Farmington is a good place to do that thing, Aylward said, because the area is growing, and there are no other coffee shops nearby doing what he is doing. Aylward wants people to be comfortable sitting down and having a cup of coffee, but he'll also sell roasted beans for customers to take home. He will roast custom batches for customers so it will be as fresh as possible. "I want it to be approachable," he said. "A lot of people get intimidated by coffee." BlueNose will continue to offer the drive-through service that was available at Dunn Bros. Aylward will have a full menu of drinks and will have food available. Aylward plans to open for business on June 15. Nathan Hansen Nathan Hansen has been a reporter and editor - with the Farmington Independent and the Rosemount Town Pages since 1997. He is very tall. N Hansen©farmingtonindependent.corn (651)460-6606 3 of 3 6/13/2016 10:33 AM Adam Kienberger From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday,June 16,2016 9:45 AM To: Adam Kienberger Subject: Unemployment Rate Steady at 3.8 Percent in May rimEMPLOYMENT AND Press Release - 111ECONOMIC DEVELOPMENT 4 , r m. For Immediate Release Contact: Monte Hanson, 651-259-7149 June 16, 2016 monte.hanson@cistate.mn.us Steve Hine, 651-259-7396 steve.hineCastate.mn.us Unemployment Rate Steady at 3.8 Percent in May —Employers cut 1,900 jobs during the month-, ST. PAUL — The Minnesota unemployment rate was unchanged at a seasonally adjusted 3.8 percent in May, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). The U.S. unemployment rate in May was 4.7 percent. Minnesota employers eliminated 1,900 jobs during the month, after gaining a revised 14,300 jobs in April. Employers in Minnesota have added 27,987 jobs over the past year, a growth rate of 1 percent. Job growth nationally in the last 12 months was 1.7 percent. "Despite the decline in May, the state labor market remains healthy, with seven of the state's 11 major industrial sectors growing in the past year," said DEED Commissioner Shawntera Hardy. Education and health services led all sectors in May with 3,900 new jobs. Government (up 2,700) and information (up 200) also gained jobs. The following sectors lost jobs: manufacturing (down 2,300), construction (down 1,900), financial activities (down 1,300), leisure and hospitality (down 1,000), trade, transportation and utilities (down 800), other services (down 600), professional and business services (down 500), and logging and mining (down 300). Education and health services also gained the most jobs year-over-year with 18,533 new positions. Other sectors that gained jobs during that period were construction (up 4,295), professional and business services (up 2,906), government (up 1,811), trade, transportation and utilities (up 1,558), financial activities (up 1,510), and leisure and hospitality (up 986). Sectors that lost jobs in the past year were logging and mining (down 1,585), information (down 1,303), other services (down 506) and manufacturing (down 218). In the Metropolitan Statistical Areas, the following regions gained jobs in the past 12 months: Minneapolis-St. Paul MSA (up 1.5 percent), Rochester MSA (up 1.5 percent), St. Cloud MSA (up 1.8 percent) and Mankato MSA (up 1.2 percent). The Duluth- Superior MSA was down 1.3 percent. 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 the DEED website (http://mn.gov/deed) or follow DEED on Twitter. Seasonally adjusted Not seasonally adjusted Unemployment May 2016 April2016 May 2016 May 2015 Rate Minnesota 3.8 3.8 3.3 3.5 U.S. 4.7 5.0 4.5 5.3 May'15-May'16 Mays'15-May Employment May 2016 May 2016 Level Change 16 /o Change Minnesota 2,888,600 2,890,500 27,987 1.0 U.S. 143,894,000 ( 143,856,000 2,359,000 1.7 Over The Year Employment Growth By Industry Sector(NSA) OTY Job OTY Growth U.S. OTY Growth 2 Change Rate(%) Rate(%) Total Non-Farm Employment 27,987 1.0 1.7 Logging and Mining -1,585 -21.8 -16.3 Construction 4,295 3.6 3.3 Manufacturing -218 -0.1 -0.4 Trade,Trans.and Utilities 1,558 0.3 1.6 Information -1,303 -2.5 0.2 Financial Activities 1,510 0.8 2.0 Prof.and Bus. Services 2,906 0.8 2.7 Ed.and Health Services 18,533 3.6 3.1 Leisure and Hospitality 986 0.4 2.5 Other Services -506 -0.4 1.1 Government 1,811 0.4 I 0.5 Metropolitan Statistical Area OTY Employment OTY Employment Change(#,NSA) Change(%,NSA) Minneapolis-St.Paul MN-WI MSA 28,352 1.5 Duluth-Superior MN-WI MSA -1,740 -1.3 Rochester MSA 1,733 1.5 St. Cloud MSA 1,983 l 1.8 -30- 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 or 1-800-657-3858 • TTY 1-800-657-3973 htto://mn.gov/deed An equal opportunity employer and service provider. 3 �I EMPLOYMENT AND ECONOMIC DEVELOPMENT Questions? Contact Us MINN@SOTA STAY CONNECTED: rI ?Q_ SHRRE j SUBSCRIBER SERVICES: Manage Preferences I Unsubscribe I Help • DEED is an equal opportunity employer and service provider. Fid ty This email was sent to akienberger@ci.farmington.mn.us using GovDelivery,on behalf of:Minnesota Department of Employment goYDELIvERY and Economic Development•332 Minnesota Street Suite E-200 Saint Paul,MN 55101 •(800)657-3858 qct thr;iy�,a nae • 4