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04-26-18
Ow*CP .4► AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING April 26, 2018 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) Approve Meeting Minutes (March 22, 2018 Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Downtown Facade Improvement Grant Program Application Dakota Wood Design (b) Immanuel Dental Certificate of Completion (c) Downtown Redevelopment Plan Implementation- Rambling River Center Plaza Funding 9. DIRECTOR'S REPORT (a) April Director's Report 10. ADJOURN oF�►tt�►i„ City of Farmington 1 -p 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 , 'A , www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Approve Meeting Minutes (March 22, 2018 Regular Meeting) DATE: April 26, 2018 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the March 22, 2018, EDA meeting. ACTION REQUESTED Approve the March 22, 2018, EDA minutes. ATTACHMENTS: Type Description ❑ Exhibit Meeting Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting March 22, 2018 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Cordes, Corraro, Jolley, Simmons Members Absent: Craig, Wilson Also Present: Adam Kienberger, Community Development Director; Teah Malecha, Finance Director; Laurie Crow, Open to Business 2. PLEDGE OFALLEGL4NCE 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 Jolley to approve the Consent Agenda as follows: a) Approved Meeting Minutes (February 22, 2018, Regular Meeting) b) Received Monthly Financial Statements APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) EDA Financial Overview and Update Finance Director Malecha gave an overview of the EDA's financial situation. The EDA started 2017 with $296,547. There were operations costs of$28,500 which includes legal fees, professional dues, subscriptions, IT charges, Open to Business, etc. The operations costs are about the same each year. There was $5,000 paid out for the façade improvement program. There is $20,000 budgeted each year for this program. The year ended at$263,047. Therefore, 2018 starts with$263,047, less operations of$30,000, there is $20,000 budgeted for the site readiness program, $20,000 budgeted for the façade program. The CDBG cash flow timing is a pass through of$17,859. The final amount available for 2018 is $193,047. Because the EDA had a healthy balance, the 2018 budget did not include a transfer from the general fund. In the past the EDA received $40,000. In 2019 that transfer will occur again. EDA Minutes(Regular) March 22,2018 Page 2 In 2010 the EDA's fund balance was a negative $242,000 and it had $6,000 in cash. The site readiness program has $20,000 with a 1:1 match to offer land owners to get their land ready for development. The program allows up to $5,000 matching grants for wetland delineation, survey work, etc. Staff proposed some changes to the façade improvement program. The EDA has $193,000 cash on hand. That number will decrease has we expend the grant programs. Members asked about Vermillion River Crossings. Hy-Vee, Aldi and Taco Bell are still coming and we are waiting for their development schedule. There is one lot remaining. The land to the west is the Dakota County maintenance facility. That area is zoned for mixed-use commercial. That will be going away in the next two to three years. b) Open to Business Update This is Farmington's fifth year in the program. The contract is with the county and the city contributes half the amount. Laurie Crow is the contact person for any clients that want to start or expand a business. The client has to want or have a business in a participating city. Each city is responsible for advertising the program. The program does provide ads each quarter. The city places the ads on Facebook and in our quarterly news guide. Open to Business is working with banks to provide the client's financial information the bank requires. That will be the next step taken in Farmington. An event like the Community Expo is an untapped opportunity for cities to do for businesses. There are cities that don't know all the businesses they have. Farmington is the only city that does that. There are starting to be more pop-up businesses where a space is rented for a month. It gives the entrepreneur an opportunity to test a product. This is an opportunity for landlords and better than having an empty building. Open to Business will gather information about this and give it to cities to run with it. Farmington is a good test area. Ms. Crow does not spend time in City Hall anymore as that was not efficient. She meets with clients wherever it works for them. She is hearing less from home based businesses and more from service businesses. Staff will share the utilization report from this program. Ms. Crow noted Farmington is the best city she works with as far as providing information a client needs to know and finding a way to make things work. In 2017 the program loaned$40,000 to businesses in Farmington. In Dakota County they loaned $200,000. c) Downtown Facade Improvement Program Guidelines The EDA controls this program. Staff had two changes to the program to discuss. Currently the grant covers $1500 to $2500. Some businesses have asked about doing a larger project and can they get two grants or is there a way to scale it EDA Minutes(Regular) March 22,2018 Page 3 according to the amount of investment taking place. Staff prepared a sliding scale with a 1:1 match. Grant Amount Project Amount Number of Projects $1,500—2,500 $3,000—5,000 13—8 $2,501 —5,000 $5,001 — 10,000 8—4 $5,001 — 10,000 $10,001 —20,000+ 4—2 In 2017 the EDA spent$5,000 on two grants. This scale may encourage a larger investment in their buildings. Members liked this idea because the plaza is getting more traction and may encourage improvements to the back sides of buildings. A member was concerned if there were two large projects and the funding was gone. The EDA does have funds to add to the program. Once the plaza construction begins, there may be more interest in improving the back sides of buildings. Members agreed with adding the scale to the program. The second change is the program specifies the downtown commercial area which goes south to Walnut Street. Staff met with a business just outside this border to the south and they are interested in doing a very large façade improvement. The work doesn't fit with CDBG dollars. Staff looked at a different way to qualify businesses and to go more on zoning of B-2 or B-3 within the downtown area. There was a concern about the visibility of a business and using a majority of the funds. Staff noted currently similar businesses would qualify for the program because they are within the current boundary. Another business of the same type would not just because they are outside the boundary. Members agreed to amend the program to properties zoned B-2 or B-3 within the downtown area. MOTION by Cordes, second by Corraro to amend the program to the above grant scale and adjust the boundaries according to B-2 or B-3 zoning in the downtown area. APIF,MOTION CARRIED. d) 2040 Comp Plan Update—Economic Development Chapter Goals to be included in the Economic Development chapter of the 2040 Comp Plan were discussed at the February 22, 2018, EDA meeting. Staff presented the goals that will be incorporated into the comp plan. MOTION by Simmons, second by Corraro to approve the proposed eight goals to be incorporated into the comp plan update. APIF,MOTION CARRIED. 9. DIRECTOR'S REPORT a) March Director's Report The Mayor's State of the City Address will be April 20 at 8:30 a.m. At the March 12 work session, the city council discussed the Rambling River Center Plaza and expressed a willingness to provide initial funding for the first phase in 2019. EDA Minutes(Regular) March 22,2018 Page 4 Dollar Tree is now open in the Farmington Mall. The City Council approved an upgrade to the commissioner's stipends from $20 to $30 per meeting as a way to retain members and generate more interest in applicants. The next EDA meeting is April 26, 2018. 10. ADJOURN MOTION by Cordes, second by Corraro to adjourn at 7:41 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Administrative Assistant itil4414 City of Farmington ra 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 www.ci.fannington.nun.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: April 26, 2018 INTRODUCTION/DISCUSSION Please find attached the monthly financial statements for the EDA. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit Financial Snapshot-April D Exhibit Actual vs. Budgeted Revenues and Expenses Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Cumulative 12 Unit Account Description Actual Budget Proposed 2018 2018 2018 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH 287,308.58 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -311,703.18 2000-HRA/ECONOMIC DEVELOPMENT 4404 FEDERAL GRANT -21,808.50 2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS -714.73 -3,100.00 -3,100.00 2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 2,257.16 11,680.00 11,680.00 2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 0.00 4,000.00 4,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 2,074.26 8,297.00 8,297.00 2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 59.52 300.00 300.00 2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 30.27 130.00 130.00 2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 500.00 500.00 2000-HRA/ECONOMIC DEVELOPMENT 6460 SUBSCRIPTIONS&DUES 595.00 2,500.00 2,500.00 2000-HRA/ECONOMIC DEVELOPMENT 6470 TRAINING&SUBSISTANCE 676.12 3,000.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 0.00 1,000.00 1,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6492 ADVERTISING 0.00 3,000.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 5,513.00 17,000.00 17,000.00 2000-HRA/ECONOMIC DEVELOPMENT 7310 OPERATING TRANSFERS 712.50 2,850.00 2,850.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 51,157.00 51,157.00 0.00 51,157.00 51,157.00 0.00 51,157.00 51,157.00 4/23/2018 2:02:19 PM Page 1 of 1 N o 0 0 0 ; o 0 o 0 o 0 0 0' 0 0 0 0 0 0 „0 j =0 c- c Y- 0 V' 0 Q N ' ' OS N c I; o'0 0' o C 0 o 0 0 0 0 0 o 0 00 o 0 '0 Q m N ,, , ,, „--- , 0 0 0 Q' co O O O. 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F O;` A ►i, City of Farmington . c - 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 .4 " WWW.ci.farmin on.mn.us TO: Economic Development Authority FROM: Cynthia Muller,Administrative Assistant SUBJECT: Downtown Facade Improvement Grant Program Application Dakota Wood Design DATE: April 26, 2018 INTRODUCTION/DISCUSSION As part of the Downtown Redevelopment Plan, business owners are encouraged to improve their buildings' front and back curb appeal through facade improvements. The EDA has approved the creation of a Downtown Façade Improvement Grant Program to fund matching grants of$1,500 up to $10,000 out of a pool of$20,000 annually. Attached is an application from Dakota Wood Design for their building located at 701 1st Street. They are requesting a grant to assist with improvements being planned for the building. These proposed improvements include: • Update the front of the building with steel siding, paint garage doors,new soffit and fascia, new gutters and downspouts, relocate air conditioning unit,partial reroof, etc. • Replace concrete loading dock and install concrete aprons on four overhead doors. The total project cost is estimated to be$57,700 including the grant request of$10,000. ACTION REQUESTED Review and approve the attached Downtown Façade Improvement Grant application and contract for Dakota Wood Design. ATTACHMENTS: Type Description o Contract Grant Agreement D Backup Material Application D Exhibit Imagel D Exhibit I mage2 City of Farmington Downtown Facade Improvement Program Grant Agreement This agreement is made and entered into this 26th day of April, 2018 by and between Doug Zellmer and Keith Gilmore (applicant), Dakota Wood Design (business name) at 701 1St Street, Farmington, MN 55024 (address) (hereinafter referred to as"Grantee") and the City of Farmington Economic Development Authority (EDA), a public body corporate and politic, having its principal offices at 430 Third Street, Farmington, Minnesota(hereinafter referred to as "Grantor"). WHEREAS, the Grantor has established a Downtown Façade Improvement Program funded by the EDA to assist businesses in the downtown commercial district, as designated on the zoning map, with building façade improvements; and WHEREAS, the Grantee has applied for Downtown Façade Improvement Program funds for façade improvements at 701 1St Street, Farmington, MN 55024 (address); and WHEREAS, the Grantor has reviewed the Grantee's application and determined that the proposed improvement project meets the requirements of the Downtown Façade Improvement Program. NOW THEREFORE, in consideration of the grant, the parties agree as follows: 1. The Grantor agrees to provide a maximum of$10,000 in EDA funds to the Grantee for façade improvements. 2. The Grantee agrees to use the proceeds of the grant solely for façade improvements with a minimum project cost of$20,000 (estimate of$57,700). 3. The project shall be completed in a timely manner and all grant funds must be used within six months from the date of the Grant Agreement. The agreement may be extended once, with the length of the extension to be determined on a case-by-case basis. 4. Grant funds will be paid on a reimbursement basis only after all improvements have been completed according to the authorized scope of work and have been accepted by the Grantor. 5. The Grant Agreement will be terminated 90 days from the date of the agreement if construction work has not yet begun. 6. The Grantee shall defend, indemnify, and hold harmless the officers and employees of the Grantor from all liability and claims for damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from Grantee's operations under this agreement. IN WITNESS WHEREOF, the parties hereto have hereby executed this agreement as of the year and date above. GRANTOR: GRANTEE: CITY OF FARMINGTON DAKC i WOocilEjNN BY: .�' �-- BY: ITS: die %/- ITS: 41,A,R4/4,Downtown Facade Improvement ProgramK �► Grant Application ? P=: $g•:64 A9R01T*�44s� APPLICANT INFORMATION NAME OF APPLICANTS) DOUG ZELLMER/KEITH GILMORE BUILDING OWNER TENANT ADDRESS ADDRESS 701 1ST ST. CITY, STATE,ZIP CITY,STATE,ZIP FARMINGTON,MN 55024 PHONE PHONE 651-463-4004 EMAIL EMAIL DAKOTAWOOD@FRONTIERNET.NET BUSINESS INFORMATION LEGAL NAME OF BUSINESS WOODLAND HOLDING CORP. ADDRESS 701 1ST ST. CITY,STATE,ZIP FARMINGTON,MN 55024 BUSINESS PHONE 651-463-4004 FEDERAL TAX ID# 41-1828457 DATE ESTABLISHED 1/1/1996 OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE: NAME DOUG ZELLMER INTEREST 50% NAME KEITH GILMORE INTEREST 50% NAME INTEREST 5 PROPERTY INFORMATION ESTIMATED DATE OF BUILDING CONSTRUCTION 1957& 1964 HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? NO PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: UPDA FE FRONT OF BUILDING WITH STEEL SIDING ETC.AS DESCRIBED IN QUOTE REC'D FROM BISCHEL BUILDING REPLACE CONCRETE LOADING DOCK AND INSTALL CONCRETE APRONS ON FOUR OVERHEAD DOORS ESTIMATED PROJECT COSTS EXTERIOR/FAcADE ESTIMATED COST 46,950.00 .EB L CZ. 4e- ESTIMATED COST 10,750.00 TOTAL ESTIMATED COST 57,700.00 6 FUNDING INFORMATION A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Downtown Facade Improvement Program,the applicant must contribute at least one dollar.The amount of grant to be awarded shall be$1,500 up to$10,000 according to the scale. TOTAL GRANT AMOUNT REQUESTED$ 10,000.00 ($1,500 up to$10,000 according to the scale) APPLICANT FUNDS $47,700.00 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/EDA 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) fAlf1 ') L / >_ DATE DATE _.3 DATE 7 Lie#BC634092 Insured ' BUILDINGISC 100 8th St.Farmington,MN 55024 Phone 651-463-8762 Fax 651-344-8729 Email Bischel@bischelbuilding.com www.biscltelbuildina.com Date: 9/13/2017 To: Doug Zelimer and Keith Gilmer Re: 1st street Quonset commercial building Proposal Working from North to South on the building starting on the south side of the loading dock. Leave pilasters in place and install siding around them. Pilasters will be painted. The area above 11' will be a cream color. The main body 4' — 11' will be a lighter gray steel The bottom 4' will be dark gray All siding will require house wrap $4200 The Suite 5 Area would be installing maintenance free soffit and custom fascia Install steel similar to the pilaster area Install awning or reroof existing roof over doorway Wrap the window and paint the garage door Install a PVC band board that is black at grade. Do you want gutters over this area? ($1,480) $6300 The Metalworks area. The owner will remove and keep his sign We will redo the scupper area. We will paint the garage door areas Finish the siding similar to the above areas including the band board at grade. Reroof the area over the entrance. Remove and reset the AC. Relocate to the roof. We will install two downspouts We will paint the two garage doors. $11,390 The area where the Mustang Guy is will be sided in a similar fashion as the above We will install two downspouts Paint the garage door Install the PVC band board at grade. We will also install a stacked Iwo at the top of the wall to protect the wall and back side of the steel siding. We will install soffit and custom bent fascia along with new gutter and downspout. We remove the cement building out front and backfill. $12,410 The spray booth area will be finished similarly to the other areas. We will install a new commercial gutter and install TPO flashing into the vinyl coated gutter. Gutter will be pitched to the south. We will install two downspouts. Install removable 4' fence. $5920 The big door area will be a board and baton at the top area with a light gray body with a dark gray bottom 4'. We will paint the garage door. $6730 Total$46,950 (r f . Rotten sheeting will be remove and re-installed at$55 per sheet of%z"OSB Back low roof area over the boiler e ..��...___.,__.._..__.-._.__.._______.._.......,_... p room. Options: PI:O erl-ay-the-baek-ronfarea-aver-tke-boiler-roem1$6 400 2.Remove roof and dispose. Install R-30 Isocyanate and mechanically install TPO roofing. Install a larger roof drain ipe )e back side of the building. Install new flashing and termination ba s. $13;320 / / J Coyylio!7''`i eCI Thank you, Nov ` t I Michael Bischel President Mechanic's Lien Notice.(a)Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions.(b)Under Minnesota law,you have the right to pay persons who supplied labor or materials for the improvement directly and deduct this amount from our contract price,or withhold the amounts due them 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 material for the improvement and who gave you timely notice. Please sign and return if bid is accepted. a Northwest Concrete and Masonry, Inc. Lynn Vigesaa 9425 150th Street East Nerstrand, MN 55053 Phone: (507)645-2639 Fax: (507)645-2392 NWMASONRY101@GMAIL.COM Proposal To: Kieth Gilmore 651-283-4090 Date: 03/23/18 Description: Cabinet shop • Remove and replace 35 x 14 loading dock—61n concrete • 4ft x 14ft concrete poured wall-12 inches thick • 8 in concrete footing for loading dock wall • 4-- 3 x 8 concrete aprons • Interior floor 4 x 8 remove and replace Total$10,750 **Any Alterations:This proposal is based on the plans and materials discussed; any changes to these plans or materials at any time may reflect a change in the price. **Proposal price is good for 60 days from date of proposal. Half of total estimate due on starting date $5,025 Payment 55,025 due when work is completed Payment is due within 10 days of invoice,10%Finance Charge on balance after 30 days Acceptance of proposal—Signature/Date Acceptance of the proposal—Signature/Date "Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions. Under Minnesota law,you 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 them 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 material for the improvement and who gave you timely notice. .. . •:/:'•`‘,.'.•,.1.1,,,11.,*4141/4, •,':'''••,,,. ;...,- . ki? 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'fir F G� ' �' 1�1a. illl'I�l�liq�ll�� -� tt ,I; s e � t 4 , `\ R ( x , a xr�Tiak & ' `At, # , , it4ii f I ,','.v.L/`G p f§Y � 9 .t",..* ,,,,..r..:, �Ei • ''.,:q fi4t # y 4 i x�' a t µg v r}#, i t F i $ 1 �p�,IA � - 0°' '\ '16f,t'll 4,,v,'.: -'...:'..-,:: k..,;-'PIK vVz., -,,,. y.- ,'`� •3� . ,,tip;�.1� �� . �. 1.1 t1/:•\. t yy r �[,t k p g' ';:: ',, ,0 Z . 'a*g q `.,,14,11..'44:,11.0..:'4.''i.,,' ',:.:,*.,. .:.-',:.!:!1;44.,:‘'.,::'''..;4.'1''',**.';':': �z I ,, y s , 4ik,RHI, City of Farmington �•. _© 430 Third Street X. 3 r/ Farmington, Minnesota 'ra 651.280.6800 -Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Immanuel Dental Certificate of Completion DATE: April 26, 2018 INTRODUCTION/DISCUSSION Staff was recently contacted by a title company on behalf of Immanuel Dental(321 Third Street), seeking a certificate of completion for the development contract of which the EDA was party to in 2011. The improvements were completed several years ago related to the redevelopment of this lot in downtown Farmington. It appears a certificate of completion was not issued at the time the project was completed. Attached for reference is the original contract for private development which includes an identified minimum improvement of a 3,000 square foot building. Immanuel Dental is planning to expand and has requested the EDA execute the attached certificate of completion. A copy of the expansion plans is attached. ACTION REQUESTED Approve the attached certificate of completion for Immanuel DentaVLinden K. Dungy. ATTACHMENTS: Type Description o Contract Certificate of Completion D Exhibit Contract for Private Development o Exhibit Immanuel Dental Expansion Plans • (Space Reserved for Recording Data.) CERTIFICATE OF COMPLETION AND RELEASE OF DEVELOPMENT AGREEMENT Date: , 2018 WHEREAS,the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON, a public body corporate and politic under the laws of the State of Minnesota("EDA") and LINDEN K.DUNGY ("Developer") entered into a Contract for Private Development dated April 25, 2011 ("Development Agreement") and recorded July 14, 2011 as Dakota County Document No. 2809725; and WHEREAS,the Agreement provided for the redevelopment of a parcel of land legally described in Exhibit "A" attached hereto; and WHEREAS,Developer has complied with all terms and conditions of the Development Agreement and that any sums due and owing under the Development Agreement have been satisfied; NOW,THEREFORE,pursuant to Article VII, Section 7.1, of the Development Agreement, the undersigned, on behalf of the EDA, certify that the Developer has complied with all terms and conditions of the Development Agreement. THIS CERTIFICA 1'h SHALL BE CONCLUSIVE DETERMINATION OF THE SATISFACTION AND TERMINATION OF THE DEVELOPMENT AGREEMENTS AND COVENANTS IN THE AGREEMENT. 197394v1 1 ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON Bye----1._ /' % - L4 rso s-; [print name] Its Chair By: cip A-.76,14., c-,-- [print name] Its Executive Direcr STATE OF MINNESOTA ) ( ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this -,bday of Prt/ , 2018,by 7 '/ 4.,,,-..5-..0.,1 and by,4,4/i, Mr-i2Zerr-o ,respectively the Chair and Executive Director of the Economic Development Authority in and for the City of Farmington, a public body corporate and politic under the laws of the State of Minnesota, on its behalf. moos.- 0 -lord_., R ,.I' tary `'"?7:''., CYNTHIA A. MULLER '3?:- =' 'f NOTARY PUBLIC-MINNESOTA •' :`y' My Commission Expires '.{,:_:-•.` January 31. 2019 r It This Instrument was Drafted by: CAMPBELL KNUTSON, Professional Association Grand Oak Office Center I 860 Blue Gentian Road,Suite 290 Eagan,Minnesota 55121 (651)452-5000 [JJJ] 197394v1 2 EXHIBIT "A" That part of Lots 5 and 6, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at a point on the West line of Lot 6, Block 23, Town of Farmington, Dakota County, Minnesota, distant 20 feet North of the Southwest corner of said Lot 6; thence East 110 feet; thence South 30 feet; thence West 110 feet;thence North 30 feet to the point of beginning. AND All that part of Lots 7 and 8, Block 23, Town of Farmington, Dakota County, Minnesota, described as follows: Beginning at the Northwest corner of said Lot 7; thence South, along the West line of said Lot 7, 30 feet;thence East 110 feet; thence North 30 feet; thence West 110 feet to the point of beginning; together with that part of the vacated alley adjacent thereto described as follows: Beginning at the Northwest corner of said Lot 7; thence East 110 feet; thence North 10 feet; thence West 110 feet;thence South 10 feet to the point of beginning. PIN 14-77000-088-23 197394v1 3 2809725 Receipt#: 157365 M 111 ABSTRACT FEE $46•00 -14411 Recorded on:7/14/2011 01:17:52PM By: DMB,Deputy Return to: FIRST AMERICAN TITLE 1900 MIDWEST PLAZA BLDG W 811 NICOLLET MALL Joel T.Beckman County Recorder Return to: MINNEAPOLIS,MN 55402 Dakota County,MN First American Title Insurance Company 1900 Midwest Plaza,801 Nicollet Mall Minneapolis,MN 55402 / NCS-4'JZ,3�o'l -MPLS�� ` Z) r nA CONTRACT FOR PRIVATE DEVELOPMENT FARMINGTON,MINNESOTA THIS AGREEMENT,made on or as of the/slay of ,2011,by and between the ECONOMIC DEVELOPMENT AUTHORITY 1 AND FOR THE CITY OF FARMINGTON,a public body corporate and politic under the laws of the State of Minnesota (the "EDA")and LINDEN K.DUNGY(the "Developer"). WITNESSETH: WHEREAS, the EDA was created pursuant to Minnesota Statutes, Sections 469.090-.108 and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Farmington pursuant to Section 469.093 of the Act;and WHEREAS, in accordance with the Act,the EDA has undertaken a program to promote the redevelopment of land which is underutilized and blighted within the City of Farmington, and in this connection created the Downtown Redevelopment Project Tax Increment Financing District(the "TIF District"); and WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain activities to prepare such real property for development and redevelopment by private enterprise; and WHEREAS,there has been a proposal that the EDA approve the sale of the real property described in Exhibit"A" attached hereto (the "Property")to the Developer for development of at least a 3,000 square foot office/medical building, landscaping and parking area in the City of Farmington(the "Project"), as depicted in Exhibit B; and . WHEREAS, there has been a proposal by the Developer providing that "but for"the use of certain tax increment revenues from the TIF District the Project would not be economically feasible and would not be commenced prior to July 1,2011;andRao- WHEREAS,the City Council adopted Resolution No. approving a spending plan for the TIF District, in accordance with Minnesota Statutes, Section 469.176, subdivision 4m, authorizing existing tax increment revenues from the TIF District in order to stimulate construction or rehabilitation of private development in a way that that will also create or retain jobs; and WHEREAS,the EDA believes that the Project and fulfillment generally of this Agreement is in the best interest of the EDA and the health, safety,morals and welfare of the residents of the City of Farmington and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW,THEREFORE,in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I. DEFINITIONS In this Agreement,unless a different meaning clearly appears from the context: "Act"means Minnesota Statutes, Sections 469.090-.108,as amended. "Agreement" [or "Contract"] means this Contract for Private Development by and between the EDA and the Developer, as the same may be from time to time modified, amended or supplemented. "Articles and Sections"mentioned by number only are the respective Articles and Sections of this Agreement so numbered. "City" means the City of Farmington,Minnesota. "County" means the County of Dakota,Minnesota. "Deed" means the limited warranty deed described in Section 3.1 to be executed by the EDA conveying the Property to the Developer. "Developer" means Linden K. Dungy, or any assigns that have received prior written approval from the EDA. "EDA" means the Farmington Economic Development Authority. "Event of Default" means an action by the Developer listed in Article VII of this Agreement. 153625v15 2 "Minimum Improvements" means at least a 3,000 square foot office/medial building constructed, landscaping,parking area,and appurtenant improvements thereto constructed on the Property by the Developer as depicted on Exhibit B, in accordance with all applicable local, state and federal regulations governing such facilities, and in conformance with site plans as the same have been submitted to the EDA and the City's architectural guidelines for the appropriate zoning district. "Parties" means the Developer and the EDA. "Party" means either the Developer or the EDA. "Project" means the Property and the completed Minimum Improvements thereon. "Property" means the real property as legally described in Exhibit"A"attached hereto. "Purchase Price" means the sum of Thirty Eight Thousand Five Hundred and No/100 Dollars($38,500.00),which the Developer shall pay the EDA for the purchase of the Property. "State"means the State of Minnesota. "Tax Increment Assistance" means the sum of Sixty Thousand and No/100 Dollars ($60,000)payable in cash,certified funds or wire transfer paid to the Developer from the TIF District to be paid in accordance with Section 3.9. "TIF District" means the Downtown Redevelopment Project Tax Increment Financing District within the City of Farmington. "Unavoidable Delays" means delays outside the control of the Party claiming its occurrence which are the direct result of strikes,other labor troubles,unusually severe or prolonged bad weather,Acts of God,fire or other casualty to the Minimum Improvements, litigation commenced by third parties which,by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit(other than the City)which directly result in delays. Unavoidable delays shall not include delays in the Developer's obtaining permits or governmental approvals necessary directly to enable construction of the Minimum Improvements. ARTICLE II. REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties by the EDA. The EDA represents and warrants that: (a) The EDA is a public body corporate and politic duly organized and existing under the laws of the State. Under the provisions of the Act and the laws of the State, 153625v15 3 , the EDA has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the EDA are undertaken for the purpose of creating additional job opportunities within the City and to enhance the economic diversity of the City and to provide essential products and services within the City. (c) The EDA makes no representation or warranty, either express or implied,as to the Property or its condition or soil conditions thereon,or that the Property is suitable for the Developer's needs except as specifically set forth in this Agreement. (d) Subject to satisfaction of the terms and conditions of this Agreement,the EDA will convey the Property to the Developer for development in accordance with the terms of this Agreement. (e) EDA has received no notice of and has no knowledge of any pending or proposed special assessments affecting the Property or any proposed or pending public improvements which may give rise to any special or area assessments affecting the Property,except as provided in Section 5.1. (f1 EDA has received no notice of and has no knowledge that the Property or its use or uses are in violation of applicable law or any applicable private restriction. (g) EDA has received no notice of and has no knowledge of any action,litigation, investigation or proceeding of any kind pending or threatened against the Property, and EDA knows of no facts which could give rise to any such action, litigation,investigation or proceeding. (h) EDA has no actual knowledge that a"well" (as defined in Minnesota Statutes Section 103I.005, subd. 21)is located on the Subject Property. (i) EDA has no actual knowledge of an "individual sewage treatment system" (as defined in Minnesota Statutes Section 115.55, subd. 1(g))located on the Subject Property. (k) The EDA has no actual knowledge of any leases, oral or written,affecting the Property nor any other right,title or interest in or to the Property granted to any third party except as otherwise shown on the survey to be provided under the terms of this Agreement. All representations and warranties shall survive Closing. Section 2.2. Representations and Warranties by the Developer. The Developer represents and warrants that: 153625v15 4 (a) The Developer has the capacity to enter into this Agreement and to perform its obligations hereunder. (b) When the Property is conveyed to the Developer,the Developer will construct, operate and maintain the Minimum Improvements upon the Property in accordance with the terms of this Agreement,and all local, state and federal laws and regulations(including,but not limited to,environmental,zoning,building code and public health laws and regulations). (c) The Minimum Improvements will be constructed by the Developer,at its sole expense, in such manner, and at such expense as are necessary to make the Property usable by the Developer, including all such improvements as are necessary to make said facility comply with all applicable federal,state and local rules,regulations,ordinances and laws. (d) The Developer will use its best efforts to construct the Minimum Improvements in accordance with all local, state or federal energy-conservation laws or regulations. (e) The Developer will use its best efforts to obtain,in a timely manner,all required permits,licenses and approvals and to meet, in a timely manner, all requirements of all applicable local, state and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed. The EDA will cooperate to expedite the processing of any application filed with the City by the Developer. The EDA does not hereby warrant or represent that the City will approve an application filed by Developer,except as expressly provided in this Agreement. (f) The Developer will cooperate with the EDA, and the EDA will cooperate with the Developer with respect to any litigation commenced with respect to the Property or the Minimum Improvements. (g) The Developer will construct the Minimum Improvements on the Property in accordance with the plans approved by the EDA and will commence construction of the Minimum Improvements on or before June 30,2011. (h) Neither the execution and delivery of this Agreement,the consummation of the transactions contemplated hereby,nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with, or results in a breach of,the terms,conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound or constitutes a default under any of the foregoing. (i) Whenever any Event of Default occurs and if the EDA shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on 153625v15 5 the part of the Developer under this Agreement,the Developer agrees that it shall, within ten(10)days of written demand by the EDA,pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA. All representations and warranties shall survive Closing. ARTICLE III. CONVEYANCE OF PROPERTY AND TAX INCREMENT ASSISTANCE Section 3.1. Status of Property. Subject to the satisfaction of the terms and conditions of this Agreement,the EDA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the EDA in "as-is" condition through the execution and delivery of a limited warranty deed containing a right of reversion as provided under Section 6.3 of this Agreement and conveying marketable title to the Subject Property, subject to: (a) building and zoning laws,ordinances,state and federal regulations; (b) restrictions related to use or improvements of the Property that do not affect Developer's intended use or improvement of the Property; (c) easements that do not interfere with Developer's intended improvements and use; (d) encroachments identified on the survey to be provided under this Agreement that do not interfere with Developer's intended improvements and use; (e) reservations of minerals or mineral rights to the State of Minnesota; (f) the easement for access provided under Section 3.2(a)(iv); and (g) the easement for sidewalk,trail, drainage and utilities provided under Section 3.2(a)(v). Section 3.2. Conditions Precedent to Conveyance of Property. (a) The EDA's obligation to convey the Property shall be subject to the satisfaction of,or waiver in writing by the EDA of,all of the following conditions precedent: (i) The Developer not being in default under the terms of this Agreement; (ii) The Developer having secured all governmental permits and approvals, including building permits necessary to be obtained in order to permit conveyance of the Property to Developer and construction of the Minimum Improvements; 153625v15 6 (iii) The Developer shall have submitted to the EDA and the EDA shall have approved Construction Plans for the Minimum Improvements pursuant to Article IV of this Agreement; (iv) At closing,Developer executing an easement in favor of the property located at 309 3rd St.,Farmington,MN 55024 for utilities and stairway access to the second story of the building located at 309 3rd St. in a form acceptable to both parties to this Agreement. Developer shall not bear any costs associated with the construction or maintenance of any improvements to be installed within the easement area. The EDA shall be responsible for providing the appropriate legal description and preparing the easement document at no cost to Developer; (v) At closing,Developer executing an easement in favor of the City of Farmington for public sidewalk,trail and utility purposes over the southernmost 16 feet of the Subject Property,or something less than 16 feet,as determined by the City,in a form acceptable to both parties. Developer shall not bear any costs associated with public improvements to be installed within the easement area. The EDA and/or City of Farmington shall construct the sidewalk contemporaneously with construction of the Project,and will be responsible for all costs associated with the construction and maintenance of any public improvements to be installed within the easement; and (vi) The EDA obtaining a deed from the State to the Property free from any restrictions on use. (b) The Developer shall be obligated to accept title to the Property subject to satisfaction,or waiver in writing by the Developer,of the following conditions precedent: (i) The EDA not being in default under the terms of this Agreement; (ii) Developer obtaining all necessary permits and approvals for its intended use of the Property from any government with competent jurisdiction; (iii) At or before Closing,Developer having determined that it is satisfied, in its sole discretion,with the results and matters disclosed by a Phase I Environmental Audit and any other environmental tests of the Property completed under the terms of this Agreement, including soil tests. Developer shall be responsible for the costs of obtaining the Phase I and any additional environmental testing of the Property; (iv) Developer obtaining, at its own expense, soil tests indicating that the Property may be improved without extraordinary building methods or expense as determined in Developer's sole discretion; 153625v15 7 • (v) The Developer determining that City water and sewer are available to the Property at an expense acceptable to Developer and that the water pressure is adequate to sprinkler the building; (vi) Developer determining that it is satisfied with the title to the property and the results of a survey of the Property prior to the Closing Date to be provided by the EDA within 30 days of execution of this Agreement. The survey of the Property to be provided by EDA shall be prepared by a licensed land surveyor in Minnesota. The survey shall meet 2005 ALTA/ACSM Minimum Standards Detail Requirements for a uniform survey and be certified to date to Developer,Title Company and any lender to Developer. The survey shall also show easements, encroachments,the gross acreage,net usable acreage and gross acreage with any right of way or wetlands; (vii) The representations and warranties of the EDA contained in this Agreement must be true now and on the Closing Date as if made on the Closing Date; (viii) Developer obtaining financing on terms acceptable to Developer in its reasonable discretion,prior to the Closing Date; (ix) Developer contemplates forming a new Minnesota limited liability company prior to the Closing Date and to assign all of Developer's interest in this Agreement to said limited liability company. EDA agrees to such assignment with the new limited liability company accepting all provisions of this Agreement,to release Linden K.Dungy from personal responsibility or liability hereunder,and to complete this Agreement with such new limited liability company; and (x) Developer's satisfaction with Developer's ability to access and use the City parking area abutting the Subject Property,recognizing that the City will not grant Developer an easement for parking or access to the abutting parking area. If the contingencies have not been satisfied or waived by the parties on or before the respective dates set forth above, then the respective party may elect to terminate this Agreement by written notice delivered to the other party not later than expiration of such applicable dates. Upon such termination, the Earnest Money shall be immediately refunded to Developer and upon such return neither party will have any further rights or obligations regarding this Agreement or the Property. If either party fails to terminate prior to expiration of such applicable contingency dates, then the contingencies pertaining to each such respective contingency shall be deemed waived by the party entitled to assert the contingency and the parties shall perform under this Agreement. If this Agreement is terminated as permitted under the terms of this Section, then 153625v15 8 upon request by EDA, EDA and Developer agree to sign a cancellation of this Agreement or Developer shall deliver a Quit Claim Deed to the Property to EDA. Section 3.3. Purchase Price.The purchase price for the Subject Property shall be payable by Developer as follows: (a) Five Thousand and 00/100 Dollars ($5,000.00) as earnest money to be delivered to the Title Company as hereinafter defined upon execution of this Agreement by Developer ("Earnest Money"). The Earnest Money shall be held by First American Title or any other title company selected by Developer and approved by EDA ("Title Company") at an agreed office thereof (the "Escrow Agent") in accordance with an Escrow Agreement among EDA, Developer and Escrow Agent in the form attached hereto as Exhibit "C". The funds placed in escrow shall bear interest at a rate no less than the applicable money market account rate. All interest earnings on the Earnest Money in the event the transaction is closed shall be credited to Developer as a payment towards the Purchase Price. In the event the transaction does not close as contemplated herein, and the Earnest Money is to be refunded to the Developer,the Earnest Money shall be refunded to the Developer together with all interest accrued thereon and shall become the sole and exclusive property of the Developer. In the event that this Agreement is terminated by either the Developer or the EDA and the Earnest Money is retained by EDA as liquidated damages or returned to the Developer, the party entitled to the Earnest Money shall also be entitled to the interest earnings thereon. If this Agreement closes pursuant to the terms thereof, the Earnest Money and all interest shall be applied to the Purchase Price. (b) The balance payable in cash, certified funds or wire transfer paid to the EDA at Closing. Section 3.4. Closing. (a) Within ten(10)days after the satisfaction and/or waiver of all of the conditions contained in Section 3.2 of this Agreement,and in any event no later than June 1, 2011 ("Closing Date")provided all conditions precedent for the EDA and Developer to close have either been met or waived,and the Developer pays the EDA the Purchase Price,the EDA shall convey the Property to the Developer through the execution and delivery of the Deed and all other documents reasonably required by Developer and the Title Company. This closing shall be at a location mutually agreed upon by the parties. (b) The Developer shall take possession of the Property upon execution and delivery of the Deed by the EDA at Closing. (c) The Deed shall be in recordable form and shall be promptly recorded along with this Agreement. 153625v15 9 (d) At Closing,the Developer shall pay: (i) all title insurance company fees for title insurance premiums,if any; (ii) recording fees for the Deed; (iii) one half of closing costs; (iv) all taxes payable in accordance with Section 5.1 of this Agreement;and (v) broker commissions in accordance with Section 3.8. (e) At Closing,the EDA shall pay: (i) state deed tax; (ii) recording fees for corrective instruments required to remove encumbrances and place marketable title in Developer's name and easements required under this Agreement; (iii) costs for the survey required under Section 3.2(b)(vi)and legal descriptions for the easements required under 3.2(a)(iv)and(v); (iv) broker commissions in accordance with Section 3.8; (v) all taxes and assessments payable in accordance with Section 5.1 of this Agreement; and (vi) the cost of obtaining a current updated title insurance policy commitment. All costs incidental to the Closing not otherwise specifically allocated under this Agreement shall be allocated in accordance with the custom and practice for similar transactions in Minnesota. (f) At the time of the conveyance of the Property by EDA to Developer,EDA shall deliver to Developer(if EDA has not already done so): (i) all plans,reports,drawings, appraisals,environmental tests, soil borings, real estate tax notices and other records in EDA's possession or control related to the Property; (ii) all other documents reasonably required by Developer's title agent in order to complete the transaction described herein. (g) Developer shall execute and deliver all documents necessary for closing of this Agreement,including: (i) the access agreement identified under Section 3.2(a)(iv); (ii) the sidewalk easement identified under Section 3.2(a)(v). Section 3.5. Title. The EDA shall,at its sole cost and expense,obtain a current commitment for the issuance of a ALTA Form B owner's policy of title insurance(the "Commitment")issued by Title committing to insure that Developer will have good and marketable title to the Property free and clear of all liens,restrictions,covenants and 153625v15 10 encumbrances except those liens,restrictions, covenants and encumbrances currently of record (the"Permitted Encumbrances"). The Commitment shall include copies of all documents referenced on Schedule B; a deferred,pending and levied special assessment search;and zoning, access, contiguity,and other standard endorsements,as Developer requests. A mortgage, monetary lien or any other lien or encumbrance against the Property shall be deemed to be a title objection. In the event any exceptions are listed in the Commitment(except for Permitted Encumbrances), if the EDA does not immediately remove the exceptions,the Developer shall have the right to terminate this Agreement as the Developer's sole and exclusive remedy and in such event neither the EDA nor the Developer shall have any obligations or liability to the other hereunder, and the Earnest Money shall be returned to Developer. Section 3.6. Physical Inspection. Developer and its agents will have the right,from time to time prior to the Closing,to enter upon the Subject Property to examine the same and the condition thereof and to conduct such surveys and to make such engineering and other inspections,tests and studies as Developer determines to be reasonably necessary,all at Developer's sole cost and expense. Developer will conduct such examinations or surveys during normal business hours to the extent practicable. Developer will conduct all examinations and surveys of the Subject Property in a manner that will not harm or damage the Subject Property so that it cannot be restored to its prior condition or cause any claim adverse to the EDA and will restore the Subject Property to its condition prior to any such examinations or surveys immediately after conducting the same. Developer will indemnify,defend, and hold the EDA harmless from and against any claims for injury or death to persons, damage to property or other losses,damages or claims, including,in each instance,reasonable attorneys' fees and litigation costs,arising out of any action of any person or firm entering the Subject Property on Developer's behalf as aforesaid, which indemnity will survive the Closing and any termination of this Agreement without the Closing having occurred. Notwithstanding the foregoing, Developer will not be liable merely for the discovery of a pre-existing condition at the Subject Property. Section 3.7. Charges to be Paid by Developer. Developer shall be responsible for all appropriate fees in connection with issuance of a building permit. Developer shall not be responsible for fees associated with land development, such as, but not limited to: park dedication, sanitary and water trunk fees, GIS fees. Developer shall be responsible for City engineering fees for review and inspection of constructions plans and improvements not covered by the building permit fees for private improvements directly related to the Subject Property such as, but not limited to, inhouse and/or consulting engineering fees for public utility connections, parking improvements located on the Subject Property and landscaping located in or associated with work in the City right of way, alley, curb, and sidewalk areas. Developer shall be responsible for any costs for repair or maintenance to City property caused by Developer's construction of the Minimum Improvements. Section 3.8 Commissions. The EDA has hired KW Commercial to represent it in this transaction. The EDA shall indemnify Developer against any claim of any broker claiming by, through or under the EDA,including any claims asserted by KW Commercial. Developer has hired Cerron Commercial Properties,LLC,to represent Developer in this transaction. Developer shall indemnify the EDA against any claim of any broker claiming by,through or under 153625v15 11 Developer, including any claims asserted by Cerron Commercial Properties,LLC. This warranty and representation shall survive Closing. Section 3.9 Tax Increment Assistance The EDA will provide the Tax Increment Assistance to Developer in three equal installments of Twenty Thousand and No/100 Dollars ($20,000)as follows: (a) $20,000 will be paid by the EDA to the Developer within a reasonable period of time following the EDA's receipt of the Developer's signed certificate substantially in the form shown in Exhibit E. (b) $20,000 will be paid by the EDA to the Developer within a reasonable period of time following the EDA's receipt of the Developer's signed certificate substantially in the form shown in Exhibit F. (c) $20,000 will be paid by the EDA to the Developer within a reasonable period of time following the Developer's receipt from the City of a temporary certificate of occupancy prior to December 31,2011. ARTICLE IV. CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Property in accordance with construction plans approved by the EDA,(the "Construction Plans") and will operate and maintain,preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof in good repair and condition. Section.4.2. Construction Plans. (a) On or before April 14,2011,the Developer shall submit to the EDA a site plan for the Property("Site Plan")and the Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with this Agreement,the Site Plan, and all applicable state and local laws and regulations. The EDA and/or the City Engineer shall approve the Construction Plans in writing if, in the reasonable discretion of the EDA and/or City Engineer: (i)the Construction Plans conform to the terms and conditions of this Agreement; (ii)the Construction Plans conform to all applicable federal, state and local law,ordinances,rules and regulations; (iii) the Construction Plans are adequate to provide for the construction of the subject Minimum Improvements; (iv)the Construction Plans do not provide for expenditures in excess of the funds which will be available to the Developer for the construction of the Minimum Improvements; and(v)no Event of Default has occurred and is continuing. No approval by the EDA and/or City Engineer under 153625v15 12 this Section 4.2 shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws,ordinances,rules and regulations, or to construct the Minimum Improvements. No approval by the EDA and/or City Engineer shall constitute a waiver of an Event of Default. The EDA and/or City Engineer shall review the Construction Plans within thirty(30) days of submission of a complete set of Construction Plans and either approve the same or provide Developer with a list of specific required changes to be made to the Construction Plans. Upon making the specific changes to the Construction Plans as required by the EDA and/or City Engineer,the Developer shall submit the Construction Plans with the required changes to the City Engineer for his approval and if Developer made the required changes,the Construction Plans shall be approved. (b) If the Developer desires to make any material change in any Construction Plans after their approval by the EDA and/or City Engineer,the Developer shall submit the proposed change to the City Engineer for his approval. If the Construction Plans, as modified by the proposed change,conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans,the EDA and/or City Engineer shall approve the proposed change and notify the Developer in writing of its approval. Section 4.3. Construction of Minimum Improvements. The Developer shall commence construction of the Minimum Improvements on or before June 30,2011. Subject to Unavoidable Delays,the Developer shall substantially complete construction of the Minimum Improvements,except for minor"punch list items",on or before December 31,2011. Section 4.4. Construction Requirements. In constructing the Minimum Improvements, the Developer shall comply with all federal, state and local laws and regulations. Section 4.5. Failure to Accept Title to Property or to Construct. In the event all conditions precedent herewith are met or waived and the Developer fails to accept title to the Property pursuant to Article III or construction of the Minimum Improvements is not commenced or completed as provided in Section 4.3 of this Agreement(subject to the provisions of Section 3.5 hereof),the Developer shall be liable to the EDA for the amount of the EDA's actual expenses related to this Agreement as liquidated damages. To guarantee construction of the landscaping and parking lot improvements according to the plans approved by the EDA, and any associated work or required clean up or repairs within city property or right of way, Developer shall furnish or cause its general contractor to furnish the EDA,`prior to any site work,) a cash escrow(or bank letter of credit substantially in the form attached hereto as Exhibit 0, and in a form approved by the EDA attorney and Executive Director, in the amount of Thirty Thousand and No/100 ($30,000)Dollars("security"). The security shall be for a term ending November 30, 2011, and shall be automatically renewable if work is not complete by that date. The EDA may draw down the security, after thirty(30)days advanced written notice and opportunity to cure,for any violation of the Section 4.5 or if the security is allowed to lapse prior to the end of the required term. If the required improvements are not completed at least thirty (30)days prior to the expiration of the security,the EDA may also draw it down. If the security 153625v15 13 is drawn down,the proceeds shall be used to cure the default,with any remainder returned to Developer. This financial security shall be released to Developer within thirty(30)days after the complete installation and approval by the EDA of all required improvements. Upon receipt of proof satisfactory to the EDA that work has been completed and financial obligations to the EDA have been satisfied,with EDA approval,which approval shall not unreasonably be withheld,the security may be reduced from time to time by ninety percent(90%)of the financial obligations that have been satisfied. Ten percent(10%)of the amounts certified by the Developer's engineer shall be retained as security until all improvements have been completed and all financial obligations to the EDA satisfied. ARTICLE V. REAL PROPERTY TAXES 5.1 Taxes and Deferred Assessments. Except as otherwise provided herein, the EDA shall pay all general real estate taxes and installments of special assessments due and payable in the year prior to the Date of Closing and years prior thereto. The EDA and Developer shall prorate all general real estate taxes due and payable on the Subject Property in the year in which the Date of Closing occurs on a per diem basis. Except as otherwise provided below, EDA shall pay on or before Closing all levied and pending special assessments associated with the Subject Property as of the Date of Closing, including the Downtown Sidewalk Streetlighting and Sanitary Slipline Projects Assessment certified in 2001. ARTICLE VI Events of Default Section 6.1. Events of Default Defined. The following shall be "Events of Default"under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides),any one or more of the following events: (a) Failure by the Developer to pay when due any payments required to be paid under this Agreement or to pay when due ad valorem taxes on the Property which are Developer's obligations hereunder. (b) Failure by the Developer to commence, diligently pursue and complete construction of the Minimum Improvements, or portions thereof, pursuant to the terms, conditions and limitations of this Agreement. (c) Failure by Developer to observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (d) The Developer does any of the following prior to completion of construction of the Minimum Improvements: (i) files any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under United States Bankruptcy Laws or any similar federal or state laws; or (ii) make an assignment for the benefit of its creditors; or (iii) admit, in 153625v15 14 writing, its inability to pay its debts generally as they become due; or (iv) be adjudicated,bankrupt or insolvent. (e) If any warranty or representation by the Developer in this Agreement is untrue in any material respect. (f) Failure by EDA to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (g) If any warranty or representation by the EDA in this Agreement is untrue in any material respect. Section 6.2. EDA's Remedies on Default. Whenever any Event of Default by Developer referred to in Section 6.1 of this Agreement occurs, the EDA may take any one or more of the following actions and unless otherwise provided such actions may be taken only after providing thirty(30)days written notice to the Developer of the Event of Default and the Event of Default has not been cured within said thirty (30) days or, if the Event of Default is by its nature incurable within thirty (30) days, the Developer does not provide assurances to the EDA reasonably satisfactory to the EDA that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances from the Developer, deemed adequate by the EDA, that the Developer will cure its default and continue its performance under the Agreement;or (b) Terminate this Agreement;or (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the EDA to collect any payments due or damages arising under this Agreement or to enforce performance and observance of any obligation,agreement,or covenant of the Developer under this Agreement. Section 63. Revesting Title in EDA Upon Happening of Event Subsequent to Conveyance to Developer. In the Event that subsequent to the execution and delivery of the Deed the Developer shall fail to complete construction of the Minimum Improvements in conformity with this Agreement and such failure shall not be cured within thirty (30) days after written notice to do so, or within a reasonable amount of time thereafter if Developer is diligently proceeding with the construction of the Minimum Improvements, then the EDA shall have the right to immediately re-enter and take possession of the Property and to terminate (and revest in the EDA)the estate conveyed by the Deed to the Developer, it being the intent of this provision,together with other provisions of the Agreement, that the conveyance of the Property to the Developer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of a default under this Section 6.3,the EDA at its option may declare a termination in favor of the EDA of the title,and all of the rights and interests in and to the property conveyed to the Developer,and that such title and all rights and interests of the Developer,and any assigns or successors in interest to and in the Property, shall revert to the EDA. If Developer 153625v15 15 1 provides a title commitment and warranty deed to the Property in lieu of reversion,the EDA shall pay to Developer 90%of that portion of the Purchase Price actually paid by Developer to the EDA. The warranty deed shall convey fee title to the Property to Developer, subject only to the encumbrances identified under 3.1 of this Agreement. The title commitment required under this section shall be a current commitment for the issuance of an ALTA Form B owner's policy of title insurance issued by Title Company committing to insure good and marketable title to the Property in favor of the EDA. A deed of trust, mortgage, monetary lien or any other lien or encumbrance against the Property shall be deemed to be a title objection. Upon request, the EDA shall release the right of revertor if the Minimum Improvements are completed and a certificate of occupancy or temporary certificate of occupancy have been issued for the Subject Property. Section 6.4. No Remedy Exclusive to EDA. No remedy herein conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies,but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof,but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 6.5. Attorneys' Fees. Whenever any Event of Default occurs and either the EDA shall employ attorneys or incur expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the Developer under this Agreement,the Developer agrees that it shall, within ten(10) days of written demand by the EDA pay to the EDA the reasonable fees of such attorneys and such other expenses so incurred by the EDA; provided, that the Developer shall only be obligated to make such reimbursement if the other party prevails in such collection or enforcement action. Section 6.6 Developer's Remedies on Default. Whenever any Event of Default by EDA referred to in Section 6.1 of this Agreement occurs,the Developer may take any one or more of the following actions and unless otherwise provided such actions may be taken only after providing thirty(30) days written notice to the EDA of the Event of Default and the Event of Default has not been cured within said thirty(30) days or, if the Event of Default is by its nature incurable within thirty (30) days, the EDA does not provide assurances to the Developer reasonably satisfactory to the Developer that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Up to the Closing: (i) suspend its performance under the Agreement until it receives assurances from the EDA, deemed adequate by the Developer, that the EDA will cure its default and continue its performance under the Agreement;or (ii) Terminate this Agreement;or 153625v15 16 (b) Take whatever action,including legal,equitable or administrative action,which may appear necessary or desirable to the Developer to collect any damages arising under this Agreement or to enforce performance and observance of any obligation, agreement,or covenant of the EDA under this Agreement. Section 6.7 No Remedy Exclusive to Developer. No remedy herein conferred upon or reserved to the Developer is intended to be exclusive of any other available remedy or remedies,but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof,but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE VII. ADDITIONAL PROVISIONS Section 7.1. Certificate of Completion. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of this Agreement, the EDA will furnish Developer with a certificate of completion substantially in the form shown at Exhibit "D" (the "Certificate of Completion"). Such certification by the EDA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of Developer, and its successors and assigns, to construct the Minimum Improvements, and shall operate to forever waive the EDA's interest in the Property, including the right of reverter. If the EDA shall refuse or fail to provide any certification in accordance with the provisions of this Section 7.1, the EDA shall, upon demand, provide Developer with a written statement, indicating in adequate detail in what respect Developer has failed to complete the Minimum Improvements in accordance with the provision of this Agreement,or is otherwise in default,and what measures or acts will be necessary, in the opinion of the EDA, for Developer to take or perform in order to obtain such certification. Upon Developer's completion of the items so described by the EDA, the EDA shall deliver a fully executed Certificate of Completion to Developer. Section 7.2. Restrictions on Use. The Developer agrees for itself and its successors and assigns and every successor in interest to the Property, or any part thereof, that the Developer and such successors and assigns shall devote the Property to, and only to, and in accordance with, the uses specified in the City Code. Section 7.3. Equal Employment Opportunity. The Developer, for itself and its successors and assigns,agrees that during the construction of the Minimum Improvements provided for in this Agreement it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations. 153625v15 17 Section 7.4. Conflicts of Interest. No member of the governing body or other official of the EDA shall have any financial interest, direct or indirect, in this Agreement, the Project or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto,nor shall any such member of the governing body or other official participate in any decision relating to the Agreement which affects his personal interest or the interest of any corporation,partnership or association in which he is,directly or indirectly,interested. No member, official or employee of the EDA shall be personally liable to the Developer or any successors in interest,in the event of any default or breach by the EDA or for any amount which may become due to the Developer or successor or on any obligations under the terms of the Agreement. Section 7.5. Waiver and Release by Developer. The Developer hereby waives, releases and forever discharges the EDA from any claim for costs incurred in preliminary plans, specifications, site testing improvements,Developer's professional fees or Developer's legal fees in connection with the Project. Section 7.6. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 7.7. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,return receipt requested or delivered personally;and (a) In the case of the Developer,is addressed or delivered personally to: Linden K.Dungy 4502 Alicia Drive Inver Grove Heights,MN 55077 with a copy to: Jeffrey K. Vest,Esq. VEST&GOLTZ,P.A. 7077 Northland Circle Suite 300 Brooklyn Park,MN 55428 Telephone: (763) 566-3720 (b) In the case of the EDA,is addressed or delivered personally to: Economic Development Authority in and for the City of Farmington City of Farmington 430 Third Street Farmington,MN 55024 153625v15 18 with a copy to: Andrea McDowell Poehler CAMPBELL KNUTSON Professional Association 1380 Corporate Center Curve, Suite#317 Eagan,Minnesota 55121 Telephone: (651)452-5000 (c) Either Party may,upon written notice to the other Party,change the address to which such notices and demands are made. Section 7.8. Disclaimer of Relationship. The Developer acknowledges that nothing contained in this Agreement nor any act by the EDA or the Developer shall be deemed or construed by the Developer or any third person to create any relationship of third-party beneficiary,principal and agent,limited or general partner or joint venture between the EDA and the Developer. Section 7.9. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Property and shall be binding upon any successors or assigns of the Developer and any future owners or encumbrancers of the Property. The representations, warranties, indemnities and covenants contained in this Agreement shall survive the Closing Date and not be merged into the Closing Documents. Section 7.10. Counterparts. This Agreement is executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 7.11. Law Governing. This Agreement w1�7die governed and construed in accordance with the laws of Minnesota. ` ` `' `' ` h Section 7.12. Facsimile Signature. The parties e&ete'aekneiwledge atid`agre€tl atin order to expedite the signing of this Agreement and the procesgd�tview-anclAsorn .with the terms hereof, the parties may utilize facsimile equipment to transmit and convey signatures hereto and such other information as may be necessary. With respect to any such transmission bearing a signature for any party hereto and on which the receiver is or may be reasonably expected to rely, than if such a facsimile transmission is corroborated by regular facsimile printout showing the telephone number from which transmitted together with a date and time of transmission, it shall be binding on the sending party and may be relied upon by the party receiving the same. The sending party hereby acknowledges such reliance and weighs any defenses to the use of such documents or signatures. IN WITNESS WHEREOF,the EDA has caused this Agreement to be duly executed in its name and behalf,and die Developer,has caused this Agreement to be duly executed in its name and behalf,on or as of the date fiti ab6ve written. 153625v15 19 Economic Development Authority in and for the City of Farmington By: dts`'r .ent By -I_ 7 Peter H. ofsky Its Ex cutive Director I.. If6 Linden K.Dungy Ir STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this d5./1 day of . 2011, by �usPh 61,the%n d Peter Herlofsky, the President and Executive Directs resectively, of the Economic Development Authority in and for the City of Farmington a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body co 'orate and politic. ' s ; CYNTHIA A. MULLER 5tiv, NOTARY PUBLIC-MINNESOTA atary Public '7*4;-'' My Commission Expires 0131.2015 STA TE OF MINNESOTA ) )ss. COUNTY OF 0 ) The foregoing instrument was acknowledged before me this /.5-tii day ofaijibp 2011,by Linden K.Dungy. Notary Public L it .:;' S `uhVaII '?;tet MyC7ommbakehria01414011 153625v15 20 DRAFTED BY: CAMPBELL KNUTSON,P.A. 1380 Corporate Center Curve, Suite#317 Eagan,Minnesota 55121 Telephone: (651)452-5000 153625v15 21 EXHIBIT"A" LEGAL DESCRIPTION OF THE PROPERTY That part of Lots 5 and 6,Block 23, Town of Farmington,Dakota County,Minnesota,described as follows: 4. 3 Bnninpoint 6, ,Town of Farmington,Dakota County, Minnesotaegig ata distant 20 feetonthe NorthWest ofline the SouthwestofLotBlock corner23of said Lot 6;thence East 110 feet;thence South 30 feet;thence West 110 feet;thence North 30 feet to the point of beginning. '• AND _Sl• Y All that part of Lots 7 and 8,Block 23,Town of Farmington,Dakota County, Minnesota, described as follows: t Beginning at the Northwest corner of said Lot 7;thence South, along the West line of said Lot 7, 30 feet;thence East 110 feet;thence North 30 feet;thence West 110 feet to the point of beginning; 41-- together with that part of the vacated alley adjacent thereto described as follows: Beginning at the w Northwest corner of said Lot 7;thence East 110 feet;thence North 10 feet;thence West 110 feet; s thence South 10 feet to the point of beginning. 1. PIN# 14-77000-088-23 `I k���ap 5A ° TF 3 '8 I ,g - --. , -- % = s = g",-1; q 5:208 Ani ;; t 6 _ : o gn'irt i(VVV SRI° i c s W •� 1 "o"n °" m $ 'F°11" 0! 19 a FAL{{• F `� K. ;: °&R; o L^E"jg31F.j,€g I� 11 ( s ''£ Ro py ;6a= m L [ A sc-tit, Ir 00 SAI /�1rz �9z � f ��� 1�I%__ �a6'L �;'� �S s 3 '� ° sdi p� r �- z '1 7g ;� =^gRm^� Q ^ >CC' i^<6 i 'll j� '_' ° Rio q's nlSo ° oyvi D ;L : P },!III �``.► � a g C m If I �' `oz €F F F ��\ -i EI - F _°<e! g � °� 2 as$ 9 Ht i t; .a 2- i t .11I)_1'•"`♦...I .,,�, ``\�\'�P D s s L ���� :<L i "a a Ex 711. ,T."7.•, • 4 d r gps�' F 6�� S 1.2g $ ° a THIRD STREET 11 NE? $i IF 1! 64 4 2 ^ P$'� €' gig € s ls9.Fs 11 09 34i 'g " it r}i F F - li'xR S" a I I^ g= $ ° a 1ga 3 -.t.E51 a : 's 14 wi v �� s L° e > N 0 ::: D ° = : m 0 rr ' 1 _ z \, I aO. I. . EDI , '£ 9 m � L m 7=Fi S R ■ Y o 4D ' 4D 4D 40 4D F _ 7,3 g 40 �' EI� IEIR ; EXHIBIT "C" ESCROW AGREEMENT The undersigned,First American Title Insurance Company("Escrow Agent")acknowledges receipt of Five Thousand and no/100ths Dollars($5,000.00)(the"Deposit")to be held by it pursuant to the Contract for Private Development to which this Escrow Receipt is attached. Escrow Agent agrees to hold the Deposit in accordance with the terms of the Contract for Private Development and disburse the same strictly in accordance with such terms. Escrow Agent shall hold the Deposit in such non-interest-bearing accounts or instruments as shall be approved by both EDA and Developer. EDA represents that its Tax I.D.Number is as follows: Developer represents that its Tax I.D.Number is as follows: 0- )9 C9 5 o f The sole duties of Escrow Agent shall be those described herein,and Escrow Agent shall be under no obligation to determine whether the other parties hereto are complying with any requirements of law or the terms and conditions of any other agreements among said parties.Escrow Agent may conclusively rely upon and shall be protected in acting upon any notice,consent,order or other document believed by it to be genuine and to have been signed or presented by the proper party or parties. Escrow Agent shall have no duty or liability to verify any such notice, consent,order or other document,and its sole responsibility shall be to act as expressly set forth in this Agreement. Escrow Agent shall be under no obligation to institute or defend any action,suit or proceeding in connection with this Agreement unless first indemnified to its satisfaction.Escrow Agent may consult with respect to any question arising under this Agreement and shall not be liable for any action taken or omitted in good faith upon advice of such counsel. The fees and charges of the Escrow Agent shall be paid as follows: one-half of such fees and charges shall be paid by EDA and one-half of such fees and charges shall be paid by Developer. ESCROW AGENT: By: Its: • EXHIBIT"B" DEVELOPER PLAN EXHIBIT "D" CERTIFICATE OF COMPLETION The undersigned hereby certifies that ., ("Developer")has fully complied with its obligations to construct the Minimum Improvements under that document titled Contract for Private Redevelopment dated , 2011,by and between the Economic Development Authority in and for the City of Farmington(the"EDA")and Developer,and that Developer is released and forever discharged from its obligations under the Agreement with respect to the obligations of Developer,and its successors and assigns,to construct the Minimum Improvements, and the EDA waives any right,title or interest it may have in the Property,including a right of reverter. The Dakota County Recorder's Office is hereby authorized to accept for recording the filing of this instrument,to be a conclusive determination of the satisfaction and termination of the covenants and conditions of the Contract for Private Redevelopment described above. IN WITNESS WHEREOF,the EDA has caused this Certificate to be duly executed in its name and behalf on or as of the date first above-written. Economic Development Authority in and for the City of Farmin By: Its Pres en, �^��,�'� � w By: Its Executive Director STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 20_, by and , the President and Executive Director, respectively, of the Economic Development Authority in and for the City of Farmington, Minnesota, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic. Notary Public ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FARMINGTON BY: AN K 4)7Linden K.Dungy . EXHIBIT "E" FORM OF GO AHEAD CERTIFICATE This Certificate("Certificate")is provided in accordance with Section 3.9(a)of the Contract for Private Development, dated ,2011,by and between the Economic Development Authority in and for the City of Farmington and Linden K. Dungy(the "Agreement"). Capitalized terms used in this Certificate and not defined herein have the meaning given in the Agreement. The undersigned certifies all required governmental permits for construction of the project have been received,that financing necessary for completion of the Project has been secured by the Developer and that actual physical construction of the Project commenced before July 1,2011. Dated: Linden K.Dungy EXHIBIT "F" CONSTRUCTION PROJECT CERTIFICATE This Certificate("Certificate")is provided in accordance with Section 3.9(a)of the Contract for Private Development,dated ,2011,by and between the Economic Development Authority in and for the City of Farmington and Linden K. Dungy(the "Agreement"). Capitalized terms used in this Certificate and not defined herein have the meaning given in the Agreement. The undersigned certifies that the construction work required to be performed in accordance with all construction contracts necessary to complete the Project has been completed in excess of fifty percent of the contract amount(s). Dated: Linden K.Dungy / I EXHIBIT"G" IRREVOCABLE LETTER OF CREDIT No. Date: TO: Economic Development Authority in and for the City of Farmington City of Farmington 430 Third Street Farmington,MN 55024 Dear Sir or Madam: We hereby issue, for the account of (Name of Developer) and in your favor, our Irrevocable Letter of Credit in the amount of$ , available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause, "Drawn under Letter of Credit No. , dated 2 ,of (Name of Bank) "; b)Be signed by the Executive Director of the Economic Development Authority in and for the City of Farmington and include a statement that a draw under this Letter of Credit is for violation of the terms of Section 4.5 of the Contract for Private Development between the Farmington EDA and Linden K.Dungey,dated ,2011 ; c)Be presented for payment at (Address of Bank) ,on or before 4:00 p.m. on November 30,2012. This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Executive Director of the Economic Development Authority in and for the City of Farmington that it intends to modify the terms of, or cancel,this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Executive Director, Farmington City Hall,430 Third Street,Farmington,MN 55024,and is actually received by the Executive Director at least thirty(30)days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits,International Chamber of Commerce Publication No. 600. 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P w 4' ¢ S s<®e ?: $4 `S S aB UI ®D l Qgmsg ENgE 47 ` a O�q a. i' W o g - ma 00 . wK C' of 'gym sL � �`i g_ I �. _ lft _ _ (� '♦♦'�'11.�! H w6 3 o� 5 a = 0 3` - hi i 2"' o` a 9sa z Q ` ) ¢ R4 a 3d ..o RA z .g 3o g 111-1111 I E 1111111/ ' s$ 33 04 i g8`" 311 a8 E WWI b E HUM 4D 1 '_° () o• iiiuIIII F !!!!HH! a ¢c HOS 335 1 1 III e X0 t 3,10311x335 t w 1� ® o sa;: =�sy i c9.'.33 E MEM .o-a w y� '2:3: His 33: w ® !!!!!!!P L1'' . / x 4 a s 3 4 � — z a �na3Hx 33s o e _ _IIIUDU aD W — `;'O` h a Q 0 L«�i 'op e� 3 4D oARiftt, City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 . ,a. ; www.cifarmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Downtown Redevelopment Plan Implementation- Rambling River Center Plaza Funding DATE: April26, 2018 INTRODUCTION/DISCUSSION City Council received an update on the Rambling River Center Plaza(RRC Plaza)public improvement project at their work session on March 12th. Staff recommended the City Council take action to incorporate the RRC Plaza concept into the city's Comprehensive Plan—Parks and Recreation chapter. This will give the RRC Plaza a permanent home and allow the City Council to prioritize funding as part of the CIP. They committed to starting an initial phase of the project in 2019 and directed staff to identify and pursue a variety of funding sources to facilitate this work. Background The Downtown Redevelopment Plan project was started in August of 2015 as a tool for guiding and defining the vision of downtown Farmington. A task force was appointed by the City Council to oversee this project consisting of representatives from city boards and commissions, FBA, business owners,residents, and a student. Several public input meetings were held over the course of drafting the plan and the input was incorporated into the final document adopted by the City Council on April 18, 2016. One of the action items of the Downtown Redevelopment Plan includes: "Design and build a Rambling River Center Plaza in the open area west of the Rambling River Center and fronting onto Oak Street as a multi functional plaza for daily informal uses as well as event uses, such as Dew Days and Dazzle Day." The EDA, RRC Advisory Commission, and Parks & Recreation Commission all reviewed and commented on the original concepts for a public plaza at the Rambling River Center as recommended in the Downtown Redevelopment Plan. On March 6, 2017 Hoisington Koegler Group, Inc. (consultant)was hired by the City Council to develop a preferred concept plan for the design of a plaza adjacent to the Rambling River Center. On April 27, 2017 an open house was held in City Hall to allow the public to view the two draft design concept options and then provide feedback to the consultant about what features they liked in the two options, what features they disliked and what other features they would like to add to the plaza design. There were about 20 people who attended the open house. The two draft design concept options were displayed in the City Hall lobby and were also accessible on the city's website, which allowed additional time for gathering public input. The public was able to provide further feedback on the two plaza concept options through May 9, 2017. The Parks and Recreation Commission reviewed and recommended approval of a preferred concept for the proposed Rambling River Center(RRC)Plaza at their meeting on May 17, 2017. The preferred concept is attached.Additional information on the Downtown Redevelopment Plan and the RRC Plaza can be found on the city's website under Community Development. Discussion and Recommendations Because the RRC Plaza initiative incorporates elements that impact several departments, successful implementation requires collaboration and a diversified pool of resources. The attached master plan has already generated interest from a number of entities including a potential new private business encouraged by this public improvement.Administration, Community Development, Public Works, and Parks and Recreation are all collaborating to make this project a success by implementing the recommendations of the Downtown Redevelopment Plan. The attached project budget includes several phases the break the RRC Plaza into manageable pieces. The initial project identified in the concept as the"near term phase"has a cost estimate ranging from$265,000- $369,000. Total project costs as depicted in the preferred concept range from$501,000-$708,000. ACTION REQUESTED Discuss the EDA's ability to financially contribute to the implementation of the RRC Plaza as recommended within the Downtown Redevelopment Plan. ATTACHMENTS: Type Description ® Exhibit Rambling River Center Plaza Master Plan D Exhibit RRC Plaza Cost Estimates a Presentation EDA Financial Revew 3-22-18 Presentation -. .._.. _. .. .- • _. L:..... -oo ©© T o to o 0' III a-2a n 2 o' a ■ a , o,cVa . 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(IC 0 -.1 .4 1-1-I 64 a ' lit --" W Z O. "J .., ''' '; CC • 'C. E Z 0 -7. I- M -II a;,I,4, z . ta w (= N < cc w ir(.' i.,13 Lu , I -, E ee L.7 0 _, Lu ul ay ..,, < ''..-"! ; ' 14141 1 : , ' a '4 cg ..... cc 1.-1 i --.1 •' ' ' : (A , z w ' r2 -I • _ , 0 4 ; < .4 , 1••• - LI- z t .. ,. a • W ILI -_ Z 1 r - V . .1 t a I': CC LU ' „. • z I— t 1— E a ▪ < PREFERRED CONCEPT - COST ESTIMATE Rambling River Center Park/Plaza Preferred Concept-Near Term Phase FEATURE UNIT QUANTITY LOW EST.COST HIGH EST.COST LOW EST.SUBTOTALS HIGH EST.SUBTOTALS SPLASH PAD SOFT _ 750 $100.00 $120.00 $75,000.00 $90,000.00 CONCRETE CURB AND GUTTER LF 355 $45.00 $55.00 $15,975.00 $19,525.00 CONCRETE PAVING SQYD 575 $45.00 $55.00 $25,875.00 $31,625.00 BENCH EACH 8 $1,000.00 $2,500.00 $8,000.00 $20,000.00 WASTE RECEPTACLE EACH2 $600.00 $2,000.00 $1,200.00 $4,000.00 BICYCLE RACK EACH2 $1,500.00 $3,000.00 $3,000.00 $6,000.00 MOVEABLE PLANTER POTS WI PLANTING SOIL EACH 10 $350.00 $800.00 $3,500.00 $8,000.00 DECIDUOUS TREE 2.5"CAL B&B EACH 6 $350.00 $400.00 $2,100.00 $2,400.00 BLACK HILLS BLUE SPRUCE 10-15'HEIGH EACH 1 $750 00 $1,000.00 $750.00 $1,000.00 TREE GRATE EACH 6 $1,500.00 $2,500.00 $9,000.00 $15,000.00 STRUCTURAL SOIL CUYD 125 $100.00 $120.00 $12,500.00 $15,000.00 PICNIC TABLE EACH 5 $1,000.00 $5,000.00 $5,000.00 $25,000.00 TURF SEEDING+TOP SOIL SQYD 210 $3.00 $5.00 $630.00 $1,050.00 HISTORIC BELL RELOCATION LUMP1 $2,000.00 $3,500.00 $2,000.00 $3,500.00, LARGE SHRUBS(IN PLANTER POTS) EACH _ 10 $100.00 $150.00 $1,000.00 $1,500.00 LIT BOLLARD(W/GFCI OUTLET) EACH 2 $2,000.00 $2,500.00 $4,000.00 $5,000.00 BIKE REPAIR STATION EACH1 $800.00 $1,200.00 $800.00 $1,200.00 WAYFINDING SIGNS EACH 2 $1,500.00 $2,500.00 $3,000.00 $5,000.00 PRECAST SEATWALL PLANTER W/PLANTING SOIL EACH1 $14,000.00 $18,000.00 $14,000.00 $18,000.00 SEATWALL PLANTER PLANTING LUMP 1 $500.00 $1,500.00 $500.00 $1,500.00 GFCI OUTLETS(PLANTER AND TREES) EACH 8 $600.00 $800.00 $4,800.00 $6,400.00 INTERACTIVE ART FEATURE LUMP_ 1 $25,000.00 $25,000.00 $25,000.00 $25,000.00 BITUMINOUS PARKING LOT PAVING SQYD 500 $25.00 $30.00 $12,500.00 $15,000.00 PARK SIGN EACH 1 $1,500.00 $2,500.00 $1,500.00 $2,500.00' PARK SUBTOTAL: $230,130.00 $320,700.00 CONTINGENCY(15%) $34,519.50 $48,105.00 SUBTOTAL $264,649.50 $368,805.00 Rambling River Center Park/Plaza Preferred Concept-Long Term Phase - FEATURE UNIT QUANTITY COST COST SUBTOTALS SUBTOTALS ' ''f.BITUMINOUS PARKING LOT/TRASH ENCLOSURE PAVING SQYD 480 $25.00 $30.00 $12,000.00 $14,400.00 CONCRETE PAVING SQYD 300 $45.00 $55.00 $13,500.00 $16,500.00 MOVEABLE PLANTER POTS W/PLANTING SOIL EACH 6 $500.00 $800.00 $3,000.00 $4,800.00, 6'SIDEWALK LF 130 $30.00 $35.00 $3,900.00 $4,550.00 ORNAMENTAL SHRUB EACH 15 $60.00 $90.00 $900.00 $1,350.00 TRASH ENCLOSURE FENCING LF 35 $75.00 $100.00 $2,625.00 $3,500.00 TURF SEEDING+TOP SOIL SQYD 350 $3.00 $5.00 $1,050 00 $1,750.00 DECIDUOUS TREE 2.5"CAL B&B EACH2 $350.00 $400.00 $700.00 $800.00 LARGE SHRUBS(IN PLANTER POTS) EACH 6 $100.00 $150.00 $600.00 $900.00 LIT BOLLARD(W/GFCI OUTLET) EACH1 $2,000.00 $2,500.00 $2,000.00 $2,500.00 ENTRY TRELLIS EACH2 $500.00 $1,000.00 $1,000.00 $2,000.00 GFCI OUTLETS(PLANTER AND TREES) EACH 4 $600.00 $800.00 $2,400.00 $3,200.00 PERGOLA EACH 1 $25,000.00 $40,000.00 $25,000.00 $40,000.00 BUILDING ENTRANCE LIGHTS EACH5 $800.00 $1,500.00 $4,000.00 $7,500.00 SUBTOTAL: $72,675.00 $103,750.00 CONTINGENCY(15%) $10,901.25 $15,562.50 SUBTOTAL $83,576.25 $119,312.50 Alley/Roadway/Infrastructure Improvements FEATURE UNIT QUANTITY COST COST SUBTOTALS SUBTOTALS BITUMINOUS ALLEY PAVING SQYD 1000 $25.00 $30.00 $25,000.00 $30,000.00 CONCRETE CURB AND GUTTER-4TH STREET LF 600 $45.00 $55.00 $27,000.00 $33,000.00 BITUMINOUS PAVING-4TH STREET SQYD 1200 $25.00 $30.00 $30,000 00 $36,000.00 TURF SEEDING+TOP SOIL-4TH STREET SQY0 420 $3.00_ $5.00 $1,260 00 $2,100.00 IMPROVE ALLEY STORMWATER INFRASTRUCTURE TBD TBD TBD TBD TBD TBD SUBTOTAL: $83,260.00 $101,100.00 CONTINGENCY(15%) $12,489.00 $15,165.00 SUBTOTAL $95,749.00 $116,265.00 Rambling River Center Building Improvements r$Y FEATURE UNIT QUANTITY COST COST SUBTOTALS SUBTOTALS a GLASS GARAGE DOORS EACH 4 $8,000.00 $15,000.00 $32,000.00 $60,000.00 BANQUET HALL FRENCH DOORS EACH2 $5,000.00 $10,000.00 $10,000.00 $20,000.00 "'. TRAIN ROOM WINDOWS EACH 1 $4,000.00 $6,000.00 $4,000.00 $6,000.00 # CONCRETE CURB AND GUTTER-OAK STREET LF 80 $45.00 $55.00 $3,600.00 $4,400.00 EXTERIOR GFCI OUTLET(POSSIBLE 220V FOR EVENTS) EACH 2 $600.00 $800.00 TBD TBD , IMPROVE RRC GARAGE INTERIOR AND PARK SIDE ENTRANCE SOFT TBD $100.00 $150.00 TBD TBD RRC HALLWAY AND INTERIOR SPACE REORGANIZATION SOFT TBD $150.00 $200.00 TBD TBD SUBTOTAL: $49,600.00 $90,400.00 fi %PLEASE NOTE:All estimates are based on 2017 construction costs and are for planning purposes CONTINGENCY(15%) $7,440.00 $13,560.00 4 only.Cost estimates do not include contingency for unexpected underground conditions.Items SUBTOTAL $57,040.00 $103,960.00 ''highlighted in yellow will require further design to develop an accurate estimate of cost. TOTAL: $501,014.75 $708,342.50 FARMINGTON - RAMBLING RIVER CENTER PARK/PLAZA 7.10.2017 HOLSINGTONKOEGLERGROUP ©8 (1101) • rommi LLEN 00 • 11,_ cle‘ (15 rt:S • <IC L.11 N O O N L11 O� O O ^ ' c..6 00 L f m W cn N l0 .\r N N Ce C I (/)�( N (TS a) c"D c�i)CD O L 11 —05 NO3 ' s_ (0 w ; \�p Op Op N aJ v , g `�®p0 Q0 ` c� © p U _1 >- V. N al d- O O O Ln ,r O O O O o0 O M. O O O f',....' m L.- .- LD M N N r-I Ol L � N T-1 V O O Q y�� C Q . I O I CU bbe N CID -0 E O CU 01.3 f6 C C C jL OC E cu O cn E 00 LNn > o O CU c 4 0a) ,_ 4--:: v) C Q -C NJ C •- E N (73� aA t Vmml aA O ra _ ca _ C CS C co C N Q U Q C)_ ap f6 N Q) ,r• r Ln 0 c!) LL U p F... Ln O I • C Q) VI N N VI a) 4—Irri 0- N .0 S— C N 4-JL 0 X Z Q) cn > - +V VI cit C tlf• N 0 .O S pn r6 cTj 2 V J 0 E '- --- (an J J J ^ ' u0 0 A •W o > V LL Aii) ,cn O •r•••• 2 a _�y - o J -i d 0 P4 164 il . -1H '6, 0 ,.... 0_ Di DS 4,; 0g .r.N. c.} 0 (dilduple,�► City of Farmington p 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ►.,, www.cifarmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: April Director's Report DATE: April 26, 2018 INTRODUCTION/DISCUSSION 2018 State of the City Address The Mayor's State of the City address was held at City Hall on April 20th. His presentation will be available on the city's website if you were not able to attend. Much of the work the EDA has done over the past year was featured and held up as one of the many ways Farmington works to support local business growth and attraction. Small Business Week April 29th—May 5th is National Small Business Week. The Dakota County Regional Chamber of Commerce is highlighting this recognition in a variety of ways: Join us as we recognize National Small Business Week with our Celebrate Small Business Luncheon! Throughout the week we will feature a number of small businesses through video, social media, and informational emails, all leading up to our celebratory luncheon: http://www.d c rc hamb er.c o m/news-events/special-events/celebrate-small-business-luncheon/ Join us as this panel discusses doing business in Dakota County at different stages of growth. We'll explore how to balance maintaining a local presence during times of growth, expansion, or adding new locations. Their event is on May 2nd from 11:30 a.m.— 1:00 p.m. at the Mendakota Country Club. Please let me know if you would like to attend so that I can take care of your registration. Also attached is the DEED Small Business Bulletin for April. 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 DEED Small Business Bulletin—April 2018 DEED Q4 Jobs Report DEED March Employment Report NEXT MEETING Our next regular meeting is scheduled for May 24th 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 D Exhibit 2016-2018 Strategic Plan for Economic Development ❑ Exhibit DEED Small Business Bulletin-April 2018 ❑ Exhibit DEED Q4 Jobs Report ❑ Exhibit DEED March Employment Report Farmington Economic Development Authority kiY,,14,, 410,0,4 -4-4::;:ti,t,„ C20, s O Jh G sr' A PROMS 2016-2018 Strategic Plan for Economic Development January 2016 1 Introduction 'The key to successful communities is their heart and soul-the unique cultures,landscapes, traditions and values that people cherish-and with people themselves taking action to enhance and sustain the places they love.Many communities are ready to protect their unique character,deeply engage their citizens,and meet the challenges of the 21st Century. Economic Development is one of those challenges,and citizens can assist with it by shopping locally and creating awareness to other citizens about the businesses within the City." (Farmington 2030 Comprehensive Plan-Chapter 10:Economic Development Element) Strategic planning is a key component of economic development.A three-year strategic plan is a valuable tool for both elected and appointed officials,as well as staff to provide work direction and prioritization of new initiatives. The following document outlines the EDA's areas of focus for 2016-2018. Participation EDA Members: Todd Larson,Chair Jeri Jolley,Vice Chair Doug Bonar Steve Wilson Kirk Zeaman Adam Kienberger,Executive Director Dr.Craig Waldron,Facilitator 2 Mission The Economic Development Authority's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships,fostering employment opportunities,promoting workforce housing,and expanding the tax base through development and redevelopment. Role of the EDA The role of the Farmington EDA is to serve as an advisory board to the City Council on matters related to economic development.Through policy development and implementation of new and existing tools,the EDA serves as the voice of economic development. 3 Strategic Priorities The following five priorities were ranked by the EDA at their strategic planning session and are defined below.These priorities will serve as the focus and primary guidance of the EDA from 2016-2018. Because new opportunities and ideas will arise during this timeframe,these priorities are meant to serve as the focus areas of the EDA while allowing flexibility to thoughtfully explore other topics deemed important. 1. Develop tools for promoting growth and development in Farmington. 2. Develop strong incentive policies to ensure proper use of tools. 3. Explore plans for acquiring land for new industrial development. 4. Complete the development of Vermillion River Crossings. 5. Define and utilize the existing 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 Adam Kienberger From: DEED Communications <MNDEED@public.govdelivery.com> Sent: Monday, April 23, 2018 9:31 AM To: Adam Kienberger Subject: Small Business Bulletin-April 2018 .e R_ Small Business Bulletin ,, f i, ' hEMPLOYMENT AND ECONOMIC DEVELOPMENT April 2018 In the News Minnesota Entrepreneurs, Leaders Win Small Business Week Awards Twin Cities Business-4/2/18 * -lcTwelve small businesses and business leaders in * Minnesota were named state winners of the 2018 * Small • * National Small Business Week Awards, an event 4, b SI ri es celebrated annually by the Small Business Administration. of the year awards Five of the 12 state winners this year were clients or affiliates of Minnesota Small Business Development Centers. They include the Central Regional SBDC Office at St. Cloud State University and Mary Lundeen, business consultant at the Center for Economic Development at the University of Minnesota Duluth. Winners were chosen based on their success in starting or helping small businesses in Minnesota, as well as for their efforts to give back to their community. National Small Business Week will be celebrated this year during the week of April 29-May 5. The Minnesota winners will be honored at a luncheon on May 11 in Minneapolis. In addition,the South Central SBCD will hold a Small Business Awards event on May 1 in Mankato. 1 MN Cup Accepting Applications for 14th Season MN Cup is accepting applications through April 27 for its annual new-business contest. V The nation's largest statewide startup competition, now in its 14th season, connects and coaches early stage ventures as they compete to be named the best new business idea of 2018. The 2018 competition features nine divisions and $475,000 in prize money. The entry divisions are General, High Tech, Energy/Clean Tech/Water, Food/Agriculture/Beverage, Life Science/Health IT, Impact Ventures, Student (undergrad or grad students), Youth (18 and under) and the newest, Education and Training. There is no fee to enter the competition, and no equity is taken. For more information and details on how to enter for 2018, please visit mncup.org. 2018 St. Paul Business Awards The city of St. Paul recently named its 2018 Business Awards winners, recognizing eight small businesses that offer jobs and services to residents,give support to nonprofit institutions, and provide a solid foundation for the city's growth and prosperity. Learn more about this year's winners. Recent Press Releases Illume Holding Co. Adding Jobs in Maple Grove With Assistance From DEED Home fragrance and personal care products company Illume Holding Co. said it will invest nearly$10.6 million in Maple Grove. Illume plans to move into a new 288,000-square-foot leased facility in the Arbor Lakes Business Park in Maple Grove. Along with the move, the company plans to add 85 jobs within two years paying wages averaging$22.21 an hour. DEED is supporting the 2 project with a $175,000 grant from the Job Creation Fund and a $450,000 loan from the Minnesota Investment Fund. Did You Know? Business.org ranked Minneapolis-St. Paul third on its list of best cities for startups in 2018, behind San v+Bi?11IS Francisco and Austin,Texas. The business products START and services website said the Twin Cities had a • U P :. remarkable 121.3 percent increase in employment at startups in the past five years, higher than any city on the top 10 list. Another plus: Minnesota's tech pay is almost twice as high as the average state wage, according to the website. mEMPLOYMENT AND ECONOMIC DEVELOPMENT mn.gov/deed Questions?Contact Us 13 Q SHARE SUBSCRIBER SERVICES: Manage Preferences i Help DEED is an equal opportunity employer and program provider. This email was sent to akienberger@ci.farmington.mn.us using GovDelivery Communications Cloud on behalf of:Minnesota Department of Employment and Economic Development 332 Minnesota Street Suite E-200•Saint Paul,MN 55101 •(800)657-3858 tgOVDELIVERY 3 Adam Kienberger From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday, March 29, 2018 8:54 AM To: Adam Kienberger Subject: State Job Vacancies Climb to 114,000 in Fourth Quarter 2017 eh EMPLOYMENT AND .` -� Press Release ECONOMIC DEVELOPMENT .* 41111111111111111111111111111111111111111101.111111111111111111 For Immediate Release Contact: Monte Hanson, 651-259-7149 March 29, 2018 monte.hanson@state.mn.us Oriane Casale 651-259-7383 oriane.casale@state.mn.us State Job Vacancies Climb to 114,000 in Fourth Quarter 2017 —Vacancies up 16 percent from one year ago ST. PAUL — Minnesota employers reported nearly 114,000 job vacancies in the fourth quarter of 2017, up 16 percent from the same period one year earlier, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). DEED's biannual Job Vacancy Survey found that the state had 0.8 unemployed people for every job vacancy. The job vacancy rate was 4.2 percent, meaning there were 4.2 openings for every 100 jobs in the state. In the 2016 fourth quarter survey, the statewide job vacancy rate was 3.6 percent. "These figures indicate that both the economy and hiring demand are strong statewide," said DEED Commissioner Shawntera Hardy. "This tight labor market underscores the importance of investing in DEED's and other training programs, specifically for Minnesotans with barriers to employment, and deploying strategies to help employers find the talent they need." The seven-county Twin Cities metro had 68,854 job vacancies (60.5 percent of the statewide total), while Greater Minnesota had 44,919 job vacancies. Job vacancies in the Twin Cities were up 19.3 percent from the same quarter one year ago, while job vacancies in Greater Minnesota were up 13.3 percent. The Twin Cities had 0.6 unemployed people for every vacancy, while in Greater Minnesota the ratio of unemployed people to vacancies was 1 to 1. Statewide, the health care and social assistance industry accounted for 22.6 percent of the vacancies, followed by retail trade (17.4 percent), accommodation and food services (13.9 percent), manufacturing (8.9 percent) and administration and waste services (4.5 percent). The occupations with the most job vacancies were retail salespeople, with 8,278 vacancies, followed by personal care aides with 6,640 vacancies and food preparation and serving with 3,251 vacancies. By size, firms with one to nine employees had the highest job vacancy rate at 6.4 percent (6.4 openings per 100 jobs). Firms with 10 to 49 employees had a job vacancy rate of 6.1 percent, while firms with 250 or more employees had a vacancy rate of 2.1 percent. The following were other findings of the study: 1. Forty-one percent of job vacancies were for part-time employment. Part-time is defined as fewer than 35 hours per week. 2. Nine percent of job vacancies were for temporary or seasonal work. 3. Thirty-two percent of vacancies required some level of postsecondary education or training beyond a high school diploma. 4. Forty-six percent of job vacancies required one or more years of work experience. 5. The median (50th percentile) wage offer for all job vacancies was $14.34 per hour. Wage offers are highly correlated with experience and education requirements. On average, the more education and/or experience required, the higher the wage offer. 6. Fifty-five percent of vacancies offered health insurance. Health care benefits are far less common for part-time job vacancies than for full-time job vacancies. Go to the DEED website for more details on the fourth quarter 2017 Job Vacancy Survey. DEED conducts the Job Vacancy Survey in the second and fourth quarters each year to gauge hiring demand and to determine job vacancy characteristics by industry, occupation and firm size in Minnesota. 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 its services, visit the DEED website or follow us on Twitter. -30- 2 4/23/2018 Press Releases/Minnesota Department of Employment and Economic Development MiEMPLOYMENT AND ECONOMIC DEVELOPMENT Press Releases mlEMPLOYMENT AND •} `" Press Release ECONOMIC DEVELOPMENT Find press releases from prior years in DEED's digital library, (http://cd m 16105.contentd m.ocic.org/cdm/sea rch/collection/p16105co111). View entire list State Gains 2,900 Jobs in March Unemployment rate steady at 3.2 percent April 19,2018 1 Economic Development Shane Delaney,651-259-7236 Shane.M.Delaney@state.mn.us(mailto:Shane.M.Delaney@state.mn.us) ST. PAUL- Minnesota employers added 2,900 jobs in March,according to seasonally adjusted figures released today by the Minnesota Department of Employment and Economic Development(DEED). DEED added that job cuts in February were revised from 1,300 jobs lost to 200 jobs lost. Over the past year,the state has gained 21,250 jobs, an increase of 0.7 percent. U.S.jobs were up 1.6 percent during that period. The Minnesota unemployment rate held steady in March at a seasonally adjusted 3.2 percent.The U.S. unemployment rate was 4.1 percent. "Manufacturing has been one of the state's key economic drivers so far this year,gaining 3,100 jobs in the last two months,"said DEED Commissioner Shawntera Hardy."The sector is growing at a healthy pace during a period when employers in manufacturing and most other industries are competing in a tight labor market." Trade,transportation and utilities led all sectors in March with 1,900 new jobs,followed by manufacturing(up 1,500), education and health services(up 800), information(up 700), professional and business services(up 200)and financial activities(up 100). Construction and other services each lost 1,000 jobs in March,while logging and mining, leisure and hospitality,and government each lost 100 jobs. Over the past year,the following industries have gained jobs: education and health services(up 8,939),trade, transportation and utilities(up 7,389),government(up 7,086), manufacturing(up 3,010)and construction (up 151). Industries losing jobs in the past 12 months were professional and business services(down 1,414), other services (down 1,388),financial activities(down 1,141), information (down 538)and logging and mining(down 58). https://mn.gov/deed/newscenter/press-releases/?id=336219 1/3 4/23/2018 Press Releases/Minnesota Department of Employment and Economic Development In the Metropolitan Statistical Areas,all regions gained jobs in the past 12 months: Minneapolis-St. Paul MSA(up 0.8 percent), Duluth-Superior MSA(up 1 percent), Rochester MSA(up 0.1 percent),St.Cloud MSA(up 0.6 percent)and Mankato MSA(up 2.2 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.(http://mn.gov/deed/data/current-econ- highlights/alternative-unemployment.jsp) 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 its services,visit the DEED website(http://mn.gov/deed),or follow DEED on Twitter.(http://twitter.com/mndeed) Seasonally adjusted Not seasonally adjusted Unemployment March February March March Rate 2018 2018 2018 2017 Minnesota 3.2 3.2 3.8 4.1 U.S. 4.1 4.1 4.1 4.6 Employment March February March'17- March'17- 2018 2018 March'18 March'18 Level Change %Change Minnesota 2,951,300 2,948,400 21,250 0.7 U.S. 148,230,000 148,127,000 2,379,000 1.6 Over The Year Employment Growth By Industry Sector(NSA) OTY Job OTY U.S.OTY Change Growth Rate(%) Growth Rate(%) Total Non-Farm Employment 21,250 0.7 1.6 Logging and Mining -58 -0.9 4.2 Construction 151 0.1 4.6 Manufacturing 3,010 1.0 2.0 Trade,Trans.and Utilities 7,389 1.4 1.4 Information -538 -1.1 0.6 Financial Activities -1,141 -0.6 1.7 Prof.and Bus. Services -1,414 -0.4 1.1 Ed. and Health Services 8,939 1.7 2.2 https://mn.gov/deed/newscenter/press-releases/?id=336219 2/3 4/23/2018 Press Releases/Minnesota Department of Employment and Economic Development Leisure and Hospitality -786 -0.3 2.8 Other Services -1,388 -1.2 1.8 Government 7,086 1.7 0.0 Metropolitan Statistical Area OTY OTY Employment Employment Change Change (#, NSA), (%, NSA) Minneapolis-St. Paul MN-WI MSA 16,455 0.8 Duluth-Superior MN -WI MSA 1,404 1.0 Rochester MSA 70 0.1 St.Cloud MSA 693 0.6 Mankato MSA 1,278 2.2 -30- Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161. 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