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AGENDA
REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING
September 28, 2017
6:30 PM
Room 170
Todd Larson, Chair; Geraldine Jolley, Vice-Chair
Robyn Craig, Steve Wilson, Hannah Simmons
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) Monthly Financial Statements
(b) Meeting Minutes (July 27, 2017 Regular Meeting)
7. PUBLIC HEARINGS
8. DISCUSSION ITEMS
(a) CDBG Commercial Rehab Application- Heikkila Studios/Fletcher Building
9. DIRECTOR'S REPORT
(a) September Director's Report
10. ADJOURN
rio 9114 City of Farmington
(U Z 430 Third Street
Farmington, Minnesota
11
ga 651.280.6800 -Fax 651.280.6899
► 11111.
.,, ,►���° www.ci.farmington.mn.us
TO: Economic Development Authority
FROM: Adam Kienberger, Community Development Director
SUBJECT: Monthly Financial Statements
DATE: September 28, 2017
INTRODUCTION/DISCUSSION
Please find attached the monthly financial statements for the EDA.
ACTION REQUESTED
ATTACHMENTS:
Type Description
❑ Exhibit Actual vs. Budgeted Revenues and Expenses
D Exhibit Financial Snapshot-September
EDA
Actual vs Budgeted
2017
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
2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Variance 2017
Intergovernmental 0 0 0 0 9,000 0 0 0 0 0 0 0 9,000 9,000
Investment Income (441) 244 323 317 386 347 353 395 0 0 0 0 1,923 2,374 (451)
Misc Revenue 0 0 5,000 0 0 0 0 0 (5,000) 0 0 0 0 0 0
Total Revenues (441) 244 5,323 317 9,386 347 353 395 (5,000) 0 0 0 10,923 2,374 8,549
6401-PROFESSIONAL SERVICES 0 0 0 0 0 0 690 0 0 0 0 0 690 11,680 (10,990)
6403-LEGAL 912 207 1,011 48 64 909 398 95 0 0 0 0 3,643 4,000 (357)
6404-IT SERVICES 673 673 673 673 673 673 673 673 0 0 0 0 5,383 8,075 (2,692)
6422-ELECTRIC 21 20 20 20 21 21 22 22 0 0 0 0 166 300 (134)
6426-INSURANCE 10 10 10 10 10 10 10 10 0 0 0 0 81 200 (119)
6450-OUTSIDE PRINTING 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000 (1,000)
6455-LEGAL NOTICES PUBLICATIO 0 0 22 0 0 0 0 0 0 0 0 0 22 22
6460-SUBSCRIPTIONS&DUES 295 420 250 188 0 0 0 0 0 0 0 0 1,153 2,500 (1,348)
6470-TRAINING&SUBSISTANCE 265 0 771 305 0 0 23 89 0 0 0 0 1,453 3,000 (1,547)
6485-MILEAGE REIMBURSEMENT 0 0 208 0 0 0 185 0 0 0 0 0 394 1,000 (606)
6550-DEVELOPER PAYMENTS 0 9,000 0 0 0 0 0 2,500 1,225 0 0 0 12,725 12,725
6570-PROGRAMMING EXPENSE 0 0 5,716 0 0 545 2,875 0 0 0 0 0 9,135 13,500 (4,365)
Services and Charges 2,176 10,329 8,681 1,243 767 2,157 4,876 3,389 1,225 0 0 0 34,844 45,255 (10,411)
Total Exp 2,176 10,329 8,681 1,243 767 2,157 4,876 3,389 1,225 0 0 0 34,844 45,255 (10,411)
Transfers In 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 0 0 0 0 26,667 40,000 (13,333)
Transfers Out (827) 0 0 0 0 0 0 (690) 0 0 0 0
(1,517) 0 (1,517)
Other Financing Sources 2,506 3,333 3,333 3,333 3,333 3,333 3,333 2,643 0 0 0 0 25,150 40,000 (14,850)
Net Change in Fund Balance (111) (6,752) (25) 2,408 11,952 1,523 (1,190) (351) (6,225) 0 0 0 1,229 (2,881) 4,110
Page 1 of 1
Department Actual vs Budget-Generic Time Period
Business Object Account Cumulative 12 Cumulative 12 Cumulative 12
Unit Account Description Actual Budget Proposed
2017 2017 2017
2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH 291,447.86
2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 50,000.00
2000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -340,219.12
2000-HRA/ECONOMIC DEVELOPMENT 4404 FEDERAL GRANT -9,000.00
2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS -2,580.91 -2,374.00 -2,374.00
2000-HRA/ECONOMIC DEVELOPMENT 4960 GAIN/LOSS INVEST MKT VALUE 657.92
2000-HRA/ECONOMIC DEVELOPMENT 5205 OPERATING TRANSFERS -26,666.96 -40,000.00 -40,000.00
2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 690.00 11,680.00 11,680.00
2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 3,642.60 4,000.00 4,000.00
2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 5,383.36 8,075.00 8,075.00
2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 165.58 300.00 300.00
2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 80.72 200.00 200.00
2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 1,000.00 1,000.00
2000-HRA/ECONOMIC DEVELOPMENT 6455 LEGAL NOTICES PUBLICATIONS 22.48
2000-HRA/ECONOMIC DEVELOPMENT 6460 SUBSCRIPTIONS&DUES 1,152.50 2,500.00 2,500.00
2000-HRA/ECONOMIC DEVELOPMENT 6470 TRAINING&SUBSISTANCE 1,453.29 3,000.00 3,000.00
2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 393.68 1,000.00 1,000.00
2000-HRA/ECONOMIC DEVELOPMENT 6550 DEVELOPER PAYMENTS 12,725.00
2000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 9,135.00 13,500.00 13,500.00
2000-HRA/ECONOMIC DEVELOPMENT 7310 OPERATING TRANSFERS 1,517.00 0.00
Total 2000-HRA/ECONOMIC DEVELOPM 0.00 2,881.00 2,881.00
0.00 2,881.00 2,881.00
0.00 2,881.00 2,881.00
9/25/2017 1:33:27 PM Page 1 of 1
�,yo�11+RM4 City of Farmington
rc1~ 430 Third Street
Farmington, Minnesota
e 651.280.6800 -Fax 651.280.6899
•A POO www.c i.farmington.mn.us
TO: Economic Development Authority
FROM: Cynthia Muller,Administrative Assistant
SUBJECT: Meeting Minutes (July 27, 2017 Regular Meeting)
DATE: September 28, 2017
INTRODUCTION/DISCUSSION
Please find attached the draft meeting minutes from the July 27, 2017, EDA meeting.
ACTION REQUESTED
Approve the July 27, 2017, EDA minutes.
ATTACHMENTS:
Type Description
a Exhibit Meeting Minutes
MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
Regular Meeting
July 27, 2017
1. CALL TO ORDER
The meeting was called to order by Chair Larson at 6:30 p.m.
Members Present: Larson, Craig, Corraro, Jolley, Simmons, Wilson
Members Absent: Cordes
Also Present: Adam Kienberger, Community Development Director; Mark
Lofthus, Dakota Electric Economic Development Director; Kara
Hildreth, Farmington Independent
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVE AGENDA
MOTION by Jolley, second by Wilson to approve the Agenda. APIF,MOTION
CARRIED.
5. CITIZEN COMMENTS
6. CONSENT AGENDA
MOTION by Wilson, second by Simmons to approve the Consent Agenda as follows:
a) Approved Meeting Minutes (June 27, 2017, Special Meeting)
b) Received Monthly Financial Statements
APIF, MOTION CARRIED.
7. DISCUSSION ITEMS
a) Site Selection Process and Site Readiness Programs
Mr. Mark Lofthus, Dakota Electric Economic Development Director, was present
to discuss the process for site selection. Community Development Director
Kienberger suggested developing a program to assist land owners with shovel
ready sites. MOTION by Wilson, second by Corraro to allocate$20,000 to a site
certification readiness program. APIF,MOTION CARRIED. Dakota Electric
can contribute $10,000 per site. Staff will prepare grant program guidelines.
8. DIRECTOR'S REPORT
9. ADJOURN
MOTION by Simmons, second by Craig to adjourn at 7:50 p.m. APIF,MOTION,
CARRIED.
Respectfully submitted,
Cynthia Muller
Administrative Assistant
III
01+04City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 -Fax 651.280.6899
.,, pn+ www.ci.farmington.mn.us
TO: Economic Development Authority
FROM: Adam Kienberger, Community Development Director
SUBJECT: CDBG Commercial Rehab Application-Heikkila Studios/Fletcher Building
DATE: September 28, 2017
INTRODUCTION/DISCUSSION
Staff has received a completed application from Pam and Doug Heikkila, owners of the Heikkila Studios
building(aka Fletcher Building)for a Commercial Rehabilitation Grant. The property is located in
downtown Farmington at 349 3rd Street. Staff has reviewed the application and worked in coordination with
the Building Official and the Dakota County CDA staff to recommend approval of a$25,000 grant for
necessary improvements to eliminate conditions detrimental to public health and safety.
Over the past several years, the EDA recommended, and the City Council authorized application for the
City of Farmington to allocate a portion of its Community Development Block Grant(CDBG)allocation to
the Commercial Rehabilitation Grant program. This program has been very successful in Farmingtonover
the past several years, and encourages local building/business owners to reinvest in public health and safety
improvements in Farmington. A program summary is below:
Grant funds may be available to assist local businesses and/or property owners who are making qualified
improvements to eligible commercial properties that eliminate conditions that are detrimental to public health
and safety. The following are examples of qualified improvements: correcting code violations, code
improvements, and the correction of handicap accessibility issues. The intent of the grant program is to
prevent the deterioration of commercial structures and discourage blight, encourage projects that correct
code violations and to eliminate accessibility restrictions. Requirements of the program include,but arc not
limited to the following:
• Applicant providing a 1:1 dollar match
• Competitive bidding
• Davis-Bacon Wage Act(payment of prevailing wages to contractors)
A location map, narrative, and pictures are attached. The grant will cover a new roof and some
painting/brick repair. The grant amount requested is $25,000, with the applicant providing matching fupids of
at least$25,000. The renovations will address several health and safety building findings including
replacement of the roof to prevent further parapet damage and water intrusion.
ACTION REQUESTED
Recommend approval to the City Council of a Commercial Rehabilitation Grant for the Heikkila
Studios/Fletcher Building in the amount of$25,000. Final approval will result in the City entering into a
grant agreement with Pam and Doug Heikkila(Heikkila Studios)funding the improvements outlined above.
ATTACHMENTS:
Type Description
❑ Exhibit 349 Third Street- Heikkila Studios CDBG
Commercial Rehab Application
o Exhibit Application Supplement and Photo
❑ Exhibit Location Map
❑ Exhibit Commercial Rehab Program Materials
4i&Rt
Commercial Rehabilitation Grant Program �
Grant Application f '
1k,
APPLICANT INFORMATION
NAME OF APPLICANT(S)
ADDRESS
4-9 3 st
CITY,STATE,ZIP
5-5O
PHONE EMAIL ADDRESS
((OSO4(oo - 83s9 he;kk;IAs-twides@ mac .Goin
; tt BUSINESS INFORMATION
Cl
LEGAL NAME OF BUSINESS 4 KIS/ 6 c- A 10 s
ADDRESS 3 Li") 3"( St-•
CITY,STATE,ZIP t t(1411 417V1 /1-4 1\) 5-5-6 2-1
BUSINESS PHONE( '61) WOO " 035*9
FEDERAL TAX ID# DATE ESTABLISHED /ql s
SOLE PROPRIETORSHIP CORPORATION ✓ PARTNERSHIP
CONTRACT FOR DEED MORTGAGE PRINCIPAL V/25.. Odd
LESSEE TERMS OF LEASE
OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE:
NAME 1`y1 Ham+ }a INTEREST
NAME tQIlt31 ' fa INTEREST
NAME INTEREST
9
PROPERTY INFORMATION
ESTIMATED DATE OF BUILDING CONSTRUCTION 1:31.1'41.1 2a 17/s Uhl m
ESTIMATED CURRENT TAX MARKET VALUE
NUMBER OF STORIES ' NUMBER OF BUSINESSES 1
NUMBER OF BUILDINGS I NUMBER OF APARTMENTS Z
HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? NO
PROJECT INFORMATION
To Whom it May Concern,
Hello,my name is Pam Heikkila and my husband Doug and I own the oldest commercial building in Farmington. This year it celebrated
being 100 years old. We think it is a beautiful building and adds a lot of character to the downtown. We are an established photography
business and bring in clients from the Twin Cities,Rochester,and many of the surrounding communities. However,being a"ma and pa
shop",doesn't offer the revenue that a large company can bring in yearly. The funds to keep up such a historic building add up each year.
Last year we updated the awnings. The initial quote to do the awnings on the entire building was$25,000.00. We did the lower level. This
year we notice that the brick work was falling down on the sidewalk. The problem stems from the old roof shrinking like a swimming pool
lining and bringing in the parapet wall causing a bulge in the masonry along the back and north side. Although we would like to fix
everything,ft's not in the budget. So,the immediate problem would be to stop the water issues by installing a new roof(the bulk of the
costl. Then,do minor repair work by painting the damaged brick,buying a little more time to get additional funds to fix the masonry work.
Ideally,we would like to hire the roof done by flat roof specialist and have us do the painting on the building to maximize the prevention of
1 further deterioration. Hopefully,we can tackle the masonry work next year,or the year after__
ESTIMATED PROJECT COSTS
Improvements eligible for grant funding eliminate specific conditions detrimental to
public health and safety.
LEXTERIOR/FACADE tool paao)f,f ESTIMATED COST ✓d10O(7
INTERIOR ESTIMATED COST
ELECTRICAL ESTIMATED COST
PLUMBING ESTIMATED COST
MECHANICAL ESTIMATED COST
FIRE SUPPRESSION ESTIMATED COST
TOTAL ESTIMATED COST ��D•ODD
10
FUNDING INFORMATION
A 1:1 match is required by the applicant. For every dollar contributed to funding
eligible project costs by the Commercial Rehab grant program,the applicant must
contribute one dollar.The amount of grant to be awarded shall be$5,000 or greater,but not
to exceed$35,000.
TOTAL GRANT AMOUNT REQUESTED $ Gd'
APPLICANT FUNDS $
ADDITIONAL SOURCES OF FUNDING $ Y
NAME OF FINANCIAL INSTITUTION
Irl .S.' n1C.
ADDRESS
2vt9I 2beri Av'- LAWeviJte , MAJ 5-'6-0%44
CITY,STATE,ZIP
CONTACT PERSON PHONE# ( ' t) 5 -fal 84
1/We declare that the information provided on this application and the accompanying attachments is
true and complete to the best of my/our knowledge, I/We understand that any intentional
misstatements will be grounds for disqualification and that the City of Farmington has the right to
verify this Information. I/We agree to provide the project coordinator reasonable access to
information and reasonable access to the construction project site so that they may monitor project
implementation.
APPLICANT(S)
Agift. 00,
£' � DATE C-1//9/2
D
ATE
DATE
11
Rosenquist Construction Inc.
2514 24th Avenue South — Minneapolis, Mn. 55406
Phone: 612-724-1356
Fax: 612-724-0511
August 9,2017
Fletcher Building
349 3rd Street
Farmington,MN
PROJECT: Fletcher Building
We are pleased to provide you with a quote for the roof replacement.
Demolition:
1. Remove existing sheet metal flashings.
2.Tear off the existing roof to wood substrate.
3.Haul debris away from the site and dispose of In a state regulated landfill.
Insulation:R-value 30
1.Install self-adhered Vapor Barrier to Substrate
2. Install 2 layers of polyisocyanurate insulation R-Value 30
3, Install Tapered insulation at scupper locations to promote drainage.
4.Install Y2"Dens Deck Prime Cover Board
5. Mechanically fasten all layers to wood substrate
Roofing:
1.Install Fully Adhered 60mil EPDM roofing system per manufactures specifications 20 year warranty.
Sheet Metal:
1.Install new prefinished sheet metal,copings,counter flashing and scuppers.
Warranty:
1. Provide a two year contractors warranty.
2.Provide a manufactures 20 year labor and materials warranty.
BASE BID:60mil EPIJM Fully Adhered 20 year warranty system
Labor and Materials,tax included,for the sum of $42,000.00
PLEASE FEEL FREE TO CONTACT ME WITH ANY QUESTION YOU MAY HAVE.
Respectfully
GREG REISER
- I
RN Roofing
Construction's
Mission is to Serve
RN ROOFING You!
August 23
Roof
Proposal
Work to be performed at:
Attention: Pam
Company: Historic Building
Phone: 651-460-8359
Cell: Address: 349 THIRD St.
Fax:
E-mail: heikkiiastudios@me.com City,State,zip: Farmington,Mn.
Type of work: Replacement
Scope of work: Squares
Type of system: (EPDM) Ethylene
Propylene Diene
Monomer 60 Mil
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61:::" THE COMMERCIAL ROOFING EXPER I S
Project Investment Obligations and Considerations
Warranty: Fifteen (15)year warranty on labor and materials.
Project cost: $58,750.00
Payment terms: Half on delivery of material and balance on completion.
R&N Roofing Construction Inc.
Accepted:
Steve Schnebly Date:
Disclaimer(READ THIS DISCLAIMER AS THIS IS PART OF OUR CONTRACT)
WWW.RNROOFING.COM/952-929-0812/INFO a@RNROOFING.COM
P
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t THE COMMERCIAL ROOFING EXPERTS
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Description of work to be done: EPDM Adhered Replacement 60 Mil
1. Roof Preparation Detail.
a. Tear off existing roof to deck and properly dispose of.
2. Insulation Detail.
a. Install Polyisocyanurate (ISO) insulation 2 layers 2.6 staggering seams achieving
an R-value of 30 and anchor to deck.
b. Also install a% inch dens-deck and fasten.
c. Around drains,taper insulation for proper drainage.
3. Membrane Detail
a. Install a 60 Mil. Fully Adhered Ethylene Propylene Diene Monomer(EPDM)
utilizing the two-sided (contact) method.
b. Unroll the EPDM membrane over the substrate so that it is wrinkle-free, and
the pre-marked lines are face up at the upper edge.
c. Membrane is manufactured to meet a wide range of roof construction
requirements.
4. Seaming and Fastening Method.
a. Use a medium nap, solvent-accepting paint roller to apply the Bonding
Adhesive to both the EPDM Membrane and the substrate at a rate of sixty(60)
square feet per gallon.
5. Mechanically Fastened Roof System.
a. Use appropriate fasteners and plates on mechanically fastened roofs to fasten
the membrane and/or insulation to the roof deck.
6. Roof Penetrations and Flashing Installation Detail.
a. Flash all perimeters of the walls, curbs, cant, and vents with 60-mil uncured
and boots where needed.
7. Metal Detail.
a. Remove metal coping edge and install new metal coping scuppers and downs
at end of job.
8. Special details
a. Bacon/Bacon Act
W W W.RNROOFING.COM/952-929-0812/IN FO@RNROOFING.COM
= � ;V::;' THE COMMERCIAL ROOFING EXPERTS
R S
Terms and Conditions
1. RN Roofing Construction,Inc.("RN")disclaims any responsibility for pre-existing conditions including,but not limited to;structural
damage or deficiencies,code violations,clogged or defective drains,mold growth,excessive standing water,leaking skylights,and
any third-party add-ons will be additional charges above the contract price.
2. RN is not qualified or licensed as an inspector and/or abatement contractor for Hazardous Materials. It is the responsibility of the
owner of the premises described above("Owner")to arrange and pay for Inspection and removal if any such substances are
suspected to be present.
3. This proposal does not cover and In no case shall RN be liable for the removal of,or damage to,HVAC units/conduits,gas lines,
water lines,electric lines,or electric units/any conduits whether located above or below the roofing system or under the metal or
wood deck and there will be an additional charge above contract price if RN has to remove any of these items to install the new
roofing system.
4. RN will Inform Owner of any sub-roof deterioration or defects which are concealed and discovered during the course of work. RN
Is not responsible to repair any such discovered defects and any work done by RN to remedy these defects will only be done as
extra work and there will be additional charges to contract.
5. RN recommends that Owner lay out drop cloths to protect sensitive areas and items located below the roofing areas being worked
upon during the roofing project to protect any items that of value or remove them to other parts of building to protect from debris
such as dust,dirt,rock,water,asphalt,or small or large bits of roofing material, It Is the Owners responsibility to cover item;
requiring protection from debris and not RN.
6. And in no way,is RN responsible for any lost work or business interruption of any kind during the course of the roofing project.RN
has to have access to the roofing project and owner has to provide this and we may have to go over grass or sidewalk,driveways
and RN Is not responsible for any damage from getting to the staging area for roofing project.
7, PLELIMiNARY LIEN NOTICE:Any person or company supplying labor or materials for this Improvement to your property may file a
Nen against your property if that person or company is not paid for their contributions,Under Minnesota law,you must have the
right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract
price,or withhold the amounts due from us until 120 days after completion of the improvement unless we give you a lien waiver
signed by persons who supplied any labor or materials for the Improvement and who gave you timely notice,
8. RN has the option to cancel this contract after 30 days and will issue a new revised contract.
RN Roofing has the opportunity to fix any and all problems with the roofing project.If contract is not paid by terms and conditions set
forth In this contract the warranty on roof will be void,and If we have to collect on this contract the owner will have to pay for all
attorney fees for collection and there will be a 1 Y,%per month charge or 18%per year,15 days after job is completed the 1 Y:%per
mo,on the balance owed will continue till the balance is paid In full.
WWW.RNROOFING.COM/952-929-0812/INFO@RNROOFING.COM
To Whom it May Concern,
Hello, my name is Pam Heikkila and my husband Doug and I own the oldest commercial
building in Farmington. This year it celebrated being 100 years old. We think it is a beautiful
building and adds a lot of character to the downtown. We are an established photography
business and bring in clients from the Twin Cities, Rochester, and many of the surrounding
communities. However, being a"ma and pa shop", doesn't offer the revenue that a large
company can bring in yearly. The funds to keep up such a historic building add up each
year. Last year we updated the awnings. The initial quote to do the awnings on the entire
building was $25,000.00. We did the lower level. This year we notice that the brick work was
falling down on the sidewalk. The problem stems from the old roof shrinking like a swimming
pool lining and bringing in the parapet wall causing a bulge in the masonry along the back and
north side. Although we would like to fix everything, it's not in the budget. So, the immediate
problem would be to stop the water issues by installing a new roof(the bulk of the cost). Then,
do minor repair work by painting the damaged brick, buying a little more time to get additional
funds to fix the masonry work.
Ideally, we would like to hire the roof done by flat roof specialist and have us do the painting on
the building to maximize the prevention of further deterioration. Hopefully,we can tackle the
masonry work next year, or the year after.
1
1 i
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Thank you for your consideration.
Sincerely,
Pam Heikkila
Heikkila Studios
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Property Information
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.
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APRO
City of Farmington
Community Development Block Grant
Commercial Rehabilitation Grant Program
Materials and Application
2017
City of Farmington
Community Development Block Grant
Commercial Rehabilitation Grant Program
The city of Farmington is allocated funding from the Dakota County Community Development
Agency(CDA) in the form of Community Development Block Grant(CDBG)funds. These
funds aid the city in supporting local businesses by assisting with financing for projects that
upgrade existing commercial buildings within the community.
The Dakota County CDA distributes the funds on behalf of the Federal Department of Housing
and Urban Development(HUD). Projects that receive CDBG are subject to HUD requirements.
The following policies and procedures have been developed for projects undertaken with
CDBG dollars in the city of Farmington. These policies are subject to change as recommended
by the Dakota County CDA and/or the Federal Department of HUD.
Program Purpose
To provide financial assistance to property owners who are making eligible improvements to
eligible commercial properties within the city of Farmington.
Type of Assistance
CDBG Grant funding.
Grant Terms&Requirements
No more than one grant may be granted per property or per applicant during a funding year
which currently runs from July 1st until June 3oth. A 1:1 match is required by the applicant. For
every dollar contributed to funding eligible project costs by the Commercial Rehabilitation
Grant Program,the applicant must contribute one dollar. The amount of grants to be awarded
shall be $5,000 or greater, but not to exceed $35,000.
Program Objectives
a. To prevent deterioration of commercial properties and discourage blight;
b. Encouraging projects that correct code violations and eliminate accessibility
restrictions to the extent necessary to eliminate specific conditions detrimental to
public health and safety;
c. To help maintain and expand the variety of options for business uses in existing
commercial space within the city.
1
Eligible Recipients
1. The property must be located within a commercially zoned district or a district that has
a commercial component. This would include the following zoning districts: B-1,
B-3, B-4, SSC, Business/Commercial Flex, Mixed Use and R-T.
2. All individuals having an ownership interest in such structure or an interest as purchaser
in a contract for deed must join in the application and sign the grant agreement with
the city, including the contract holder.
3. Leaseholders are eligible to make application for CDBG funds. The Farmington
Economic Development Authority and City Council,on a case-by-case basis,will review
such applications to determine their eligibility for funding, based on the length of the
lease on the property and length of time the business has operated in Farmington. The
property owner must join in the application and comply with Program requirements.
4 Projects that would result in permanent displacement of either residential or business
tenants will not be financed with CDBG program funds. Any temporary displacement
of tenants resulting from project activities shall be the responsibility of the property
owner. Tenants shall be fully informed of the project plans, and the expected impact on
them, and shall receive a Notice of Non-displacement or Displacement, as appropriate,
prior to the start of rehabilitation. Property owners will be required to provide
relocation assistance to tenants as required under the Uniform Relocation and Real
Property Acquisition Policies Act of 1970.
5. No member of the governing body of the locality, or official,employee,or agent of the
local government who exercises policy, decision-making function or responsibilities,
including members of the Economic Development Authority(EDA), Planning
Commission and Farmington City Council, in connection with the planning and
implementation of the Commercial Rehabilitation Grant Program shall directly or
indirectly benefit from this program. This prohibition shall continue for one (1)year
after an individual's relationship with the local government ends. Any potential
conflicts of interest under Minnesota Statues 412.311 and 47i.87-471.89 or Federal
Regulations 24 CFR, Part 57o, Uniform Administration Requirements, shall be
evaluated on the basis of a legal opinion to be requested from the Farmington City
Attorney.
6. Ineligible project costs include but are not limited to interior remodeling improvements,
furniture,financing fees, business or operating costs, equipment, removable fixtures
and building acquisition costs. Costs incurred prior to the application date are not
eligible for program funding.
7. Eligible projects must comply with Federal Anti-Pirating Regulations. Any assisted
business relocating to the city of Farmington must not relocate more than twenty-five
jobs from any other labor market area or o.o1%of jobs in the Labor Market Area, unless
forced to relocate by an action under the Uniform Relocation Act. Farmington is part of
the Minneapolis-St. Paul Metropolitan Statistical Area Labor Market Area.
2
Program Definitions
Program Administrator
The Program Administrator shall be the Dakota County CDA, 1228 Town Centre Drive, Eagan,
MN 55123, Phone (651) 675-4400. Staff shall work with the Project Coordinator in
administration of all aspects of the program.
Applicant
Any person seeking to obtain assistance under the terms of this program.
Building Official
The Building Official for the program shall be a city of Farmington employee and shall provide
plan review and technical expertise relating to inspections,construction quality, code
compliance and scope of work to be accomplished.
Project Coordinator
The Project Coordinator for the program shall be an employee of the city of Farmington and
shall provide assistance and management relating to improvement activities. The Project
Coordinator is responsible for program marketing, application intake, scheduling of
inspections, preparation of contracts and grant documents,and processing of payment
requests. The Project Coordinator serves as the contact person for rehabilitation from
application to project close-out and shall be available during regular business hours.
Target Area
Locations that are in commercial zoning districts or districts with a commercial component,
including: B-1, B-2, B-3, B-4, SSC, Business/Commercial Flex, Mixed Use, and R-T.
Eligible Improvements: Facade improvements,corrections of code violations, code
improvements, and correction of handicap accessibility issues to the extent necessary to
eliminate specific conditions detrimental to public health and safety.
Special Conditions
Contractors: All project work undertaken with CDBG funds must be completed by bona fide
contractors who are licensed (as applicable)and provide proof of insurance.
Historic Properties
The city of Farmington is a Certified Local Government under the Historic Preservation ACt.
Eligible "historic properties" are those which have been designated or determined eligible,for
designation as Farmington Heritage Landmarks;within or immediately adjacent to the
boundaries of a historic district; or listed on the National Register of Historic Places.The city
will work in conjunction with the State Historic Preservation Office to implement Federal
preservation guidelines as they relate to eligibility and certification of work
3
Davis-Bacon Wage Rates: All contracts in excess of$2,000 that will be funded through the
CDBG program require compliance with the Federal Labor Standards Provisions of the Davis-
Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by
the U.S. Department of Labor. Appropriate wage information must be included in the bid
selections and contract documents. The Project Coordinator must approve all payrolls prior to
the release of funds.
Fair Housing &Equal Opportunity
The city of Farmington and the Project Coordinator will work affirmatively to ensure that all
persons, regardless of race,color, creed, national origin, sex, religion, marital status,age,
handicap,familial status or reliance on public assistance will be treated fairly and equally for
purposes of participation in the Program. Access to program information and materials will
not be denied to any person for any reason. The city will encourage the participation of
women and minority-owned businesses and local businesses and suppliers who meet Section 3
Criteria.
Lead Based Paint
The program will conform to the requirements of the Residential Lead Based Paint Hazard
Reduction Act of 1992 for any assisted property that contains residential dwelling units. All
program applicants must provide notification of the hazards of lead based paint to impacted
tenants. The Building Official shall inspect for defective paint surfaces at the time the property
is being inspected for code compliance. All defective surfaces will be corrected in accordance
with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices.
Additionally,contracts for rehabilitation work will include language explicitly prohibiting the
use of lead based paint.
Data Privacy
All information provided by applicants under the Commercial Rehabilitation Grant Program
shall be maintained in accordance with the Minnesota Data Practices Act and the city's
Subrecipient Agreement with the Dakota County CDA.
Procedures
Application Intake
Applications are accepted on an ongoing basis and are reviewed based upon funds availability.
Applications will be reviewed for participation in the program based upon the following
guidelines:
1. Whether the applicant has clear title to the property to be improved. Prior to project
approval,the following will be ascertained:
a. Title verification;
b. All real estate taxes and any city fees or charges are current;
4
c. All individuals having an ownership interest, including contract holders, have
agreed in writing to join in the application;
2. The extent to which the project meets the program objectives;
3. The degree of the project's overall impact on the surrounding area.
4. An environmental review of the property shall be conducted by the CDA. Allow 6o',days
for the completion of the environmental review.
5. Property details for properties older than 5o years will be submitted to the State
Historic Preservation Officer(SHPO) by the CDA for determination of the property's
historical significance.
If necessary, applications competing for limited funds may be selected based upon these
criteria. Projects that are not financially feasible within the constraints of available funding will
be eliminated from consideration.
Property Inspections
Upon determination that a property owner applying for rehabilitation assistance is eligible
based on the program guidelines,the Building Official shall conduct an inspection of the
property to determine the corrective actions necessary for the property to conform to city of
Farmington building code standards.
Scope of Work
The Scope of Work will have two(2)components:
Upon completion of the initial inspection,the Building Official shall prepare a
report indicating the work necessary to bring the property into compliance with
Farmington building codes inclusive of the Minnesota Energy Efficiency
Standards. In addition,the Project Coordinator will complete the CDBG SlUm &
Blight for Spot Basis National Objective Form. Both reports will be used for the
project to satisfy the intent of the Program and shall be included as a part of the
Scope of Work.
2. The property owner shall provide a report or elevation drawing indicating any
planned improvements. This report will be reviewed by the city of Farmington.
Project Approval
The final application will be approved by the Farmington City Council;following review by city
of Farmington staff and recommendation by the EDA. Improvements approved for CDBG
funding will be based on the severity of the correction needed and the ability of the applicant
to complete the project with CDBG funds and private funds.The Dakota County CDA will
determine final approval. Verification of availability of private funds will be required before
final approval of the project.
Competitive Bidding
A minimum of three(3)competitive bids must be solicited and two(2)competitive bids must
be obtained for each improvement project the applicant proposes for CDBG funding.
5
Applicants may use any contractorthey choose, as long as the contractor meets the
requirements listed below.
All contractors must provide a Certificate of Insurance Coverage. Contractors must also certify
that they will comply with the requirements of the Davis-Bacon Act. These rates will be
provided to the applicant as a part of the contractor's instructions.
Awarding Contracts
The contract will be between the applicant and the contractor. The contract will be awarded to
the lowest bid unless one (1)of the following circumstances occur:
1. The bid is determined to be unrealistically low and the contractor agrees to withdraw
the bid;
2. The contractor has failed to follow the procedures as outlined in the instructions tolthe
bidders;
3. The owner does not want the low-bid contractor to perform the work and agrees to pay
the difference between the lowest bid and the preferred contractor's bid.
4. There appears to be collusion between two(2)or more contractors, in which case, all
bids in the questionable trade category will be thrown out and different contractors will
be solicited for bids; and
5. The contractor fails to bid according to the specifications,and it proves impossible to
compare that contractor's bid with the other bids received.
Approval by the Economic Development Authority(EDA)and City Council
Once the applicant has accepted a bid, staff will prepare the information for presentation to
the EDA. Upon EDA approval,the item will be forwarded to the City Council for final approval.
If approved by the City Council,a Grant Agreement will be signed by the applicant and a
designated city official. This Agreement will outline the terms and conditions of the project,
including the city's role and the applicant's responsibilities,and any corrective actions to be
taken in the event of a dispute.
Notice to Proceed
A preconstruction conference will be held with the Program Coordinator,the Building Official,
the applicant and contractors and subcontractors to ensure awareness and compliance with
Davis-Bacon requirements and any other requirements necessary to begin the project. A
notice to proceed will be issued after the preconstruction conference. The contractor will
normally have one(1)year in which to complete the awarded contract. If construction work
does not begin within go days of the award of contract the Grant Agreement is null and void:
however the applicant may apply for one extension if necessary. The length of the extension
will be determined on a case-by-case basis.
Change Orders
All change orders to the current contract require the approval of the Project Coordinator as
well as the signatures of the owner and contractor.
6
Acceptance of Work
Interim inspections may be scheduled with the Building Official to monitor work in progress.
Final inspection shall be required to ensure that the work has been completed in a satisfactory
manner. In the event of a dispute between the owner and contractor concerning the
completion of work,the Project Coordinator shall work with both parties to try to negotiate a
satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal
action by either party to the contract, shall be resolved in accordance with applicable State
law. CDBG funds shall not be released to either the owner or contractor until such dispute has
been settled.
Hold Harmless
The owner and the contractor shall indemnify and hold harmless the city of Farmington,the
Farmington EDA, and the Dakota County CDA and their respective officers,employees,and
officials from any damages or liability arising from, or occurring as a result of,the activities
funded through this Program.
CDBG Payment
All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the owner
and the city of Farmington. Payments will be made only after all code improvements and
exterior work have been completed according to the authorized scope of work, and have Keen
accepted by the owner. Funds will be released once all improvements are complete to the
satisfaction of the City Building Official and once title ownership, Davis-Bacon wage payments
and other requirements are satisfied with the CDA and the city. The Building Official and city
staff will inspect the final project,and a Certificate of Occupancy(CO)or a Temporary
Certificate of Occupancy(TCO)will be issued by the Building Inspections Division. The CO or
TCO is required before the CDA releases funds.
Payment may be made directly to the contractor or in reimbursement to the owner, upon
presentation of paid receipts for approved work.
The following must be presented to the Project Coordinator in order to process payment:
Billing Statement/Paid Receipt
2. Sworn Contractor's Statement
3. Completion Certificate
4. Weekly Payroll Reports
Private Financing
Applicants are responsible for all costs incurred as a result of not accepting the lowest bido and
costs above and beyond the availability of CDBG funds as outlined in the Program.
Applicants shall contact a lending institution of their choice to arrange financing for their
portion of the project. Applicants should request a letter of credit or other suitable
documentation from the lending institution to prove that private funds have been committed.
7
This letter is to be submitted with the completed application. If an applicant is not using a
lending institution, other evidence of committed funds must be presented at the time of
application.
Escrow
The property-owner may be requested to establish an escrow account or other private account
for deposit of the private funds that will be used to complete the improvement project. The
CDBG funds shall be reserved on the Owner's behalf by the Dakota County CDA, but shall be
drawn from the U.S.Treasury only when actually needed for disbursement to contractors or
vendors, or in reimbursement to the Owner.
Appeals Process
Appeals concerning eligibility for the Commercial Rehabilitation Grant Program or the
proposed improvements shall be made in writing and addressed to the Project Coordinatdr.
The Coordinator will contact the applicant and attempt to rectify any concerns. A written
response will be made within fifteen (15)days.
8
Commercial Rehabilitation Grant Program Vlikt
Grant Application
y
APPLICANT INFORMATION
NAME OF APPLICANT(S)
ADDRESS
CITY,STATE,ZIP
PHONE EMAIL ADDRESS
BUSINESS INFORMATION
LEGAL NAME OF BUSINESS
ADDRESS
CITY,STATE, ZIP
BUSINESS PHONE
FEDERAL TAX ID# DATE ESTABLISHED
SOLE PROPRIETORSHIP CORPORATION PARTNERSHIP
CONTRACT FOR DEED MORTGAGE PRINCIPAL
LESSEE TERMS OF LEASE
OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE:
NAME INTEREST
NAME INTEREST
NAME INTEREST
9
PROPERTY INFORMATION
ESTIMATED DATE OF ORIGINAL BUILDING CONSTRUCTION
ESTIMATED CURRENT TAX MARKET VALUE
NUMBER OF STORIES NUMBER OF BUSINESSES
NUMBER OF BUILDINGS NUMBER OF APARTMENTS
HAS THIS BUILDING BEEN HISTORICALLY REGISTERED?
PROJECT INFORMATION
BRIEF DESCRIPTION OF PROPOSED PROJECT:
ESTIMATED PROJECT COSTS
Improvements eligible for grant funding eliminate specific conditions detrimental to public
health and safety.
EXTERIOR/FA4ADE ESTIMATED COST
INTERIOR ESTIMATED COST
ELECTRICAL ESTIMATED COST
PLUMBING ESTIMATED COST
MECHANICAL ESTIMATED COST
FIRE SUPPRESSION ESTIMATED COST
TOTAL ESTIMATED COST
10
FUNDING INFORMATION
A 1:1 match is required by the applicant. For every dollar contributed to funding eligible
project costs by the Commercial Rehab grant program, the applicant must contribute one
dollar.The amount of grant to be awarded shall be$5,000 or greater, but not to exceed$35,00o.
TOTAL GRANT AMOUNT REQUESTED $
APPLICANT FUNDS $
ADDITIONAL SOURCES OF FUNDING $
NAME OF FINANCIAL INSTITUTION
ADDRESS
CITY, STATE,ZIP
CONTACT PERSON PHONE#
I/We declare that the information provided on this application and the accompanying attachments is
true and complete to the best of my/our knowledge. I/We understand that any intentional
misstatements will be grounds for disqualification and that the City of Farmington has the right td
verify this information. I/We agree to provide the project coordinator reasonable access to information
and reasonable access to the construction project site so that they may monitor project
implementation.
APPLICANT(S)
DATE
DATE
DATE
11
MINNESOTA DATA PRACTICES ACT—TENNESSEN WARNING
In accordance with the State of Minnesota Government Data Practices Act,the City of
Farmington is required to inform you of your rights as they pertain to the confidential
information collected from you. Confidential data is that information which is not available to
you or the public. The personal information we collect about you is private.
The information collected from you and from other agencies or individuals is used to
determine the disposition of your application with the City.
The dissemination and use of the data collected is limited to that necessary for the
administration and management of the Commercial Rehabilitation Grant Program. Persons or
agencies with whom this information may be shared, include:
1. City of Farmington personnel administering the grant program.
2. The Dakota County Community Development Agency.
3. City Council Members, Economic Development Authority Members
4. Contracted private auditors.
5. Law enforcement personnel.
6. Those individuals or agencies to whom you give your express written
permission.
NOTICE PURSUANT TO MS.6oA.955
12
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Z 430 Third Street
Farmington, Minnesota
651.280.6800 -Fax 651.280.6899
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TO: Economic Development Authority
FROM: Adam Kienberger, Community Development Director
SUBJECT: September Director's Report
DATE: September 28, 2017
INTRODUCTION/DISCUSSION
City CounciUEDA/Planning Commission—Comp Plan Update
The EDA is invited to attend a special City Council work session on October 30th to receive and discuss
an update from the consultant team working on the 2040 Comprehensive Plan Update. The item will be
presented as part of the City Council work session at 7:00 p.m.
City CouncilEDA/Planning Commission—ULI Development Panel
The EDA is invited to attend the November 136 City Council work session from 6-8 p.m. where they will
be hosting a panel of development experts from the Urban Land Institute(ULI). ULI offers this opportunity
as part of their advisory services theme"Navigating your competitive future". The Planning Commission is
also being invited to attend.
State of Minnesota FAM Tour
Staff recently participated in a MN DEED FAM tour(short for"familiarization")with a group of site
selectors from around the region and country. This event was held on September 13-15 and included panel
discussions, tours, and networking with eight national site selectors. The event was sponsored by the
Minnesota Marketing Partnership (of which Farmington is a member)and aligns with the EDA's marketing
strategy.
EZ Auto Site Plan Submittal
EZ Auto has submitted a site plan and conditional use permit application to rebuild on their site in downtown
Farmington. The application will be reviewed by the Planning Commission at their meeting on October 17th
Aldi Site Plan/CUP Approved by Planning Commission
Aldi has submitted a site plan and conditional use permit application for the lot in VRC directly south of
McDonalds. The 22,000 square foot retail store proposal was approved by the Planning Commission at
their meeting on September 12. Aldi has indicated a 2018 construction timeframe.
Riste Lot Update
On Friday,August 31st we received official notice that Last Hope was withdrawing their offer for the Riste
Lot owned by the EDA. They noted that they were unable to arrive at a satisfactory building cost for the
proposed use of the lot. The EDA should discuss if we should actively market this lot for sale.
2016-2018 Strategic Plan for Economic Development
This will be a standing item of note each month in the Director's Report. This document serves as guidance
for the work undertaken by the EDA over a three-year cycle. The EDA's 2016-2018 Strategic Plan for
Economic Development is included for your reference.
Miscellaneous Articles
News items of interest include:
"In Minnesota, survey finds 4 out of 5 construction firms can't fmd enough workers"— Star Tribune
"'Bad press', politics blamed for the failure of$24M Shakopee project— Star Tribune
"Hy-Vee planning massive Minnesota distribution center—Mpls/St. Paul Business Journal
NEXT MEETING
Our next regular meeting is scheduled for October 26th 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
❑ Exhibit 2016-2018 Strategic Plan for Economic
Development
In Minnesota, survey finds 4 out of 5
❑ Exhibit construction firms can't find enough workers -
Star Tribune
❑ Exhibit 'Bad press', politics blamed for failure of$24M
Shakopee project-Star Tribune
❑ Exhibit Hy-Vee planning massive Minnesota distribution
center- Mpls/St. Paul Business Journal
Farmington Economic Development Authority
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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 21"Century.
Economic Development is one of those challenges,and citizens can assist with it by shopping
locally and creating awareness to other citizens about the businesses within the City.
(Farmington 2030 Comprehensive Plan Chapter 10:Economic Development Element)
Strategic planning is a key component of economic development.A three-year strategic plan
is a valuable tool for both elected and appointed officials,as well as staff to provide work
direction and prioritization of new initiatives. The following document outlines the EDA
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 mission is to improve the economic vitality of the city
of Farmington and to enhance the overall quality of life by creating partnerships,fostering
employment opportunities,promoting workforce housing,and expanding the tax base
through development and redevelopment.
Role of the EDA
The role of the Farmington EDA is to serve as an advisory board to the City Council on matters
related to economic development.Through policy development and implementation of new
and existing tools,the EDA serves as the voice of economic development.
3
Strategic Priorities
The following five priorities were ranked by the EDA at their strategic planning session and
are defined below.These priorities will serve as the focus and primary guidance of the EDA
from 2016-2018.
Because new opportunities and ideas will arise during this timeframe,these priorities are
meant to serve as the focus areas of the EDA while allowing flexibility to thoughtfully explore
other topics deemed important.
1. Develop tools for promoting growth and development in Farmington.
2. Develop strong incentive policies to ensure proper use of tools.
3. Explore plans for acquiring land for new industrial development.
4. Complete the development of Vermillion River Crossings.
5. Define and utilize the existing or future resources of the EDA.
4
Implementation Strategies
1. Develop tools for promoting growth and development in Farmington.
• Identify traditional economic development tools
• Identify tools that can be unique to Farmington
• Identify existing resources
• Identify potential resource partners
• Recommend tools to City Council
2. Develop strong incentive policies to ensure proper use of tools.
• Discuss criteria and thresholds desired for individual tools (i.e.job creation,
wages,etc.)
• Recommend policies to City Council
• Allocate necessary resources
• Promote available tools
o Website etc.
3. Explore plans for acquiring land for new industrial development.
• Provide input on the 2040 Comprehensive Plan and land use designations
o Encourage additional collaboration between advisory bodies
o Joint meeting(s)with Planning Commission
• Maintain relationships with local landowners
• Explore additional ways to facilitate land development
4. Complete the development of Vermillion River Crossings.
• Maintain relationship with broker/landowners
• Consider alternate land use options
• Discuss existing assessments
5. Define and utilize the existing or future resources of the EDA.
• Do current resources align with desired tools/initiatives?
• Explore economic development revenue opportunities
• Joint meeting(s)of the EDA and City Council
5
2016 Work Plan TBD
Check in on strategic priorities at each EDA meeting to demonstrate progress or discussion
needed.
6
9/20/2017 In Minnesota,survey finds 4 out of 5 construction firms can't find enough workers-StarTribune.com
BUSINESS
In Minnesota, survey finds 4 out of 5
construction firms can't find enough
workers
As the shortage increases,wages are rising and pushing up costs of
projects.
By Don Jacobson Special to the Star Tribune SEPTEMBER 14,2017—11:13PM
Reinforcing recent concerns about a shortage of skilled construction labor,a newly
released survey found the squeeze is indeed being felt by a vast majority of contractors
in Minnesota.
The industrywide survey of more than 1,600 construction firms by the Associated
General Contractors of America(AGC)and engineering software maker Autodesk found
that 70 percent of construction firms across the United States reported that they are
having"a hard time"filling hourly craft positions that represent the bulk of the
construction workforce.
In Minnesota,the squeeze was even more acute,with 78 percent of the 40 companies
answering the survey indicating they were having trouble filling craft labor positions.
The hardest workers to find:heavy equipment and crane operators,carpenters,work
crew superintendents and truck drivers.
Amid heightened demand
Employers aren't optimistic that things would be getting better anytime soon. tea'
11.
Eighty percent of them said it will either continue to be hard or become even harder to
find a sufficient labor supply over the coming 12 months,with the same number _
characterizing the local pipeline for supplying skilled workers as either"fair"or"poor."
The tight labor market is an especially vexing problem because it is coming at a time of
heightened demand for their services.The same survey showed 62 percent of the �--�'—
Minnesota companies were looking to expand their craft workforce to keep up with the
surge in projects. (http://stmedia.startribune.com/images/ows_1505421518346,
ISAAC HALE-STAR TRIBUNE FILE
AGC's Washington-based leaders say the results mean that fewer firms in the short term Hy-Vee said construction costs played a factor
will be capable of bidding on new commercial and public infrastructure construction in its decision to not build a store in White Bear
projects.As a result,diminished competition will almost certainly translate into Lake,despite an aggressive expansion in the...
unexpectedly higher costs for developers and governments.
A recent high-profile example of construction-cost sticker shock came when Hy-Vee,in
the midst of an aggressive expansion in the Twin Cities,decided not to build a store in
White Bear Lake.A company spokeswoman said construction costs played a factor in
the move.
The longer-term consequences of the labor shortage on the construction industry are
more profound,said Tim Worke,AGC of Minnesota chief executive.
"The way contractors are coping with it now is by offering overtime,bonuses and their
other kinds of perks to their existing workers,"he said."For example,if you're a local
commercial builder and doing work in the North Dakota market,you're offering Twin
Cities metro wage rates for that project and covering their housing,meals and
transportation.
"But in the bigger picture,"he added,"what this situation really shows is that the
Minnesota construction industry is at a crossroads.A lot of our current workforce are
white,male baby boomers,many of whom have come into the industry from a farming
background.They're getting close to retirement and the new workforce is more urban,
less white and less male.How do you get them interested in the construction trades?"
How automation is changing industry
http://www.startribune.com/in-minnesota-survey-finds-4-out-of-5-construction-firms-can-t-find-enough-workers/444506243/?section=business 1/2
9/20/2017 In Minnesota,survey finds 4 out of 5 construction firms can't find enough workers-StarTribune.com
The other major element playing havoc with the current labor market is the mounting
effect of automation on the construction industry.Worke said one reason it has taken
nearly a decade to replace the 60,000 local construction jobs lost during the 2008
recession is that contractors have used technological advances to become more efficient
and make do with fewer workers.
'These advances have meant that you can do the same job much more efficiently and
much more safely than ever before,"he said."For instance,a job that before the
recession would require a five-man crew now might take only four.That trend will only
accelerate into the future."
He contended that the automation dynamic is"exacerbating a'disconnect'in the
industry about how we should train future workers,who we should train and how many
we should train."
As an example,Worke cited the continuing training of heavy equipment operators—a
specialty that is likely to become highly automated in the future.
Don Jacobson is a freelance writer based in St.Paul.He is the former editor of the
Minneapolis-St.Paul Real Estate Journal.
http://www.startribune.com/in-minnesota-survey-finds-4-out-of-5-construction-firms-can-t-find-enough-workers/444506243/?section=business 2/2
9/19/2017 'Bad press,'politics blamed for failure of$24M Shakopee project-StarTribune.com
SOUTH METRO
CPM Cos. walks away from $24 million
downtown redevelopment project in
Shakopee
Officials blame"bad press"and"political issues"for the deal falling
through.
By Liz Sawyer(http://www.startribune.com/Iiz-sawyer/270190981/)Star Tribune
SEPTEMBER 19,2017—3:50PM
After weeks of political turmoil on the Shakopee City Council,a Minneapolis-based
developer has thrown in the towel on a$24 million redevelopment project in the city's
historic downtown.
CPM Cos.had planned to buy and demolish the old City Hall and replace it with a 70-
unit,market rate apartment complex geared toward young professionals.A few blocks
away,the developer also sought to build a 100-room boutique hotel.
The project was touted by some city staff members as a"transformative"effort to help
attract tourism to the region and spark further growth.
a
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— — (http://stmedia.startribune.comfimages/ows_1504931539212'
In an e-mail to City Council members on Monday,City Administrator Bill Reynolds RENEE JONES sc HNEm ER,STAR TRIBUNE
stated flatly that the CPM deal was dead. City administrator Bill Reynolds walks through
the Shakopee Community Center on Sept.1.
'They are no longer interested in investing in downtown Shakopee,"Reynolds wrote,
citing"political issues"on the governing body and"bad press"as the developer's
primary reasons for walking away.
'We will regroup,but having CPM walk will not help our chances,"he wrote.
In an interview,Reynolds elaborated that there was a lack of reasoned dialogue on the
proposed development,which was sometimes soured with misinformation from social
media and local news reports.
He described the southwestern suburb as a community in transition,with a five-member
council split between two different visions for the future.Three members see an
opportunity to promote downtown growth,while two others fear the city might be
expanding too quickly.
"It's difficult to figure out where we're headed as a community in the current political
climate,"Reynolds said."But we ultimately need to figure out who we want to be when
we grow up."
CPM officials could not be immediately reached for comment.
The deal fell through just one week after Council Member Mike Luce filed a police
report(http://www.startribune.com/shakonee-city-council-drama-escalates-with-oolice-
x report/444262883/)accusing colleague Jay Whiting of misspending funds from the
Shakopee Heritage Society without any proof.Shakopee police closed the case after a
one-day investigation,which they later characterized as frivolous.Luce was censured
last spring for repeatedly acting outside of his authority as a City Council member.
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9/19/2017 'Bad press,'politics blamed for failure of$24M Shakopee project-StarTribune.com
News of the sunken CPM project came as a blow to some downtown business owners,
who envisioned an immediate spike in foot traffic from a hotel near Huber Park where
wedding parties could enjoy a scenic view of the Minnesota River and access to the State
Trail.Advocates of the proposal said apartments would also help drive resident's back
to the city's core,offering an alternative to single-family homes pulling residents to the
outskirts of town.
"I imagine the countless,steady stream of visitors at the hotel that will be exploring
Downtown Shakopee and the Riverfront,"Billy Wermerskirchen,owner of the men's
clothing store Bill's Toggery,wrote in a July 8 e-mail to city staff."A vibrant downtown
is essential to a city's health,and we have a wonderful,historic one,that most cities only
dream of having."
lizsawyer@startribune.com J 612-673-4648 V bylizsawyer
X
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9/25/2017 Hy-Vee planning massive Minnesota distribution center-Minneapolis/St. Paul Business Journal
MENU MINNEAPOLIS/ST.PAUL Q
BUSINESS JOURNAL
FOR THE EXCLUSIVE USE OF AKIENBERGER@CI.FARMINGTON.MN.US
From the Minneapolis/ St. Paul Business Journal:
https://www.bizjournals.com/twincities/news/2017/09/21/hy-vee-planning-massive-minnesota-
distribution.html
Hy-Vee planning massive Minnesota distribution center
Sep 21,2017,2:34pm CDT
Hy-Vee Inc. is expanding its grocery distribution system closer to its
rapidly growing network of stores in the Twin Cities.
The Wes Des Moines, Iowa-based grocer said in a statement that it is / I
exploring preliminary plans for a distribution center on 150 acres J1}„ 1
.__
•
along Highway 90 in Austin, Minn. The 1 million-square-foot center •
would be built in phases beginning in 2019, the company said.
The distribution center would be Hy-Vee's first outside of Iowa, where CARE KENNEDYIMSEBJ
it operates three such facilities. Hy-Vee is planning a 1 million square foot distribution
center in Austin,Minn.
Hy-Vee has long been a major presence in the Midwest, including
southern Minnesota. But it only recently began a big push into the Twin Cities, opening its seventh store
here in August, with six more in the pipeline.
"The site in Austin is being considered for the project due to its centralized location in our eight-state
territory and interstate access as well as the community's ample workforce,” said Hy-Vee spokeswoman
Tina Potthoff.
Potthoff did not answer questions about whether or not Hy-Vee had long-term plans for a distribution
center in the Twin Cities.
Minnesota Department of Employment and Economic Development spokesman Shane Delaney told the Des
Moines Register that Hy-Vee hadn't been offered any incentives yet, but said there are a number of
programs available to the company.
Nick Halter
Staff Reporter/Broadcaster
Minneapolis/St.Paul Business Journal
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