Loading...
HomeMy WebLinkAbout03-22-18 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 OFALLEGIANCE 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