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HomeMy WebLinkAbout02-28-19 s.1/4„r .1/4 41 AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING February 28, 2019 6:30 PM Room 170 Todd Larson, Chair; Geraldine Jolley, Vice-Chair Robyn Craig, Steve Wilson, Hannah Simmons Jake Cordes 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Approve Meeting Minutes (January 24, 2019, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Annual Organizational Items (b) Open Meeting Law (c) 2019-2021 Strategic Plan for Economic Development Priorities and Work Plan 9. DIRECTOR'S REPORT (a) February Director's Report 10. ADJOURN o►Rari,� City of Farmington �. t, 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 •A pool* www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller,Administrative Assistant SUBJECT: Approve Meeting Minutes (January 24, 2019, Regular Meeting) DATE: February 28, 2019 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the January 24, 2019, EDA meeting. ACTION REQUESTED Approve the January 24, 2019, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting January 24, 2019 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Craig, Cordes, Jolley, Simmons, Wilson Members Absent: None Also Present: Adam Kienberger, Community Development Director; Rusty Fifield, Kara Hildreth 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Wilson, second by Jolley to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Cordes, second by Simmons to approve the Consent Agenda as follows: a) Approved Meeting Minutes (December 20, 2018, Regular Meeting) b) Received Monthly Financial Statements APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Draft 2019-2021 Strategic Plan for Economic Development Mr. Rusty Fifield,Northland Public Finance,presented the strategic plan which was developed from the November 29, 2018, workshop and input from staff. There was a lot of discussion about communication and explaining to people what the EDA does. That drove a lot of the plan. The strategic plan has sections on context, objectives, tactics and a 2019 action plan. Member Craig suggested having something in the vision statement about business growth. She was very pleased with the overall document. Member Simmons complimented the consultant on the work they did and felt it is a very impressive document. Member Wilson suggested having a document with action items that we want to accomplish in the next three years. He noted the taxable market value chart points out something about neighboring cities. There must be something we can get from that info on how larger cities survive. Mr. Fifield noted the chart is a good indicator of objectives for the EDA in trying to attract development. The more parallel cities are Hastings and Rosemount. Member Simmons pointed out this is where the communication comes in to help residents understand how Farmington looks different than Lakeville. Member Jolley was very satisfied with the plan. We need to have people who work here, live here. In doing visits to EDA Minutes(Regular) January 24,2019 Page 2 industrial companies, the biggest complaint was we don't have the kind of housing our employees want. We need to remember a strategic plan is a guideline and maybe re-evaluate each year. Member Cordes noted the school board will have one seat on the EDA. He was also very pleased with the plan. Member Simmons agreed with adding something to the vision statement about retaining businesses. In the mission statement, she suggested replacing"market"with "position"and in the last line to open, grow, expand a business. Member Simmons noted a joint work session with the planning commission was mentioned, but would also like one added with the city council. MOTION by Simmons, second by Cordes to approve the 2019-2021 strategic plan for economic development. APIF, MOTION CARRIED. b) Facade Improvement Grant Program Analysis Staff provided a summary on the last two years of this program. The EDA has paid out$31,000 and leveraged $90,000. Right now, the EDA allocates $20,000 to this program. Adjustments can be made as needed. 9. DIRECTOR'S REPORT a) January Director's Report The Community Expo is Saturday, January 26, 2019. WSB will be there to provide information on the highway 3 corridor plan. Staff has received a letter of intent for$20,000 from the church to purchase the Riste lot. An updated appraisal will be ready next week and staff is working with the city attorney on a purchase agreement. CDBG dollars come from HUD. The CDA has enough funding for 2018, but due to the government shutdown, the 2019 funding may be impacted. Regarding the EDA composition, Mayor Larson has resigned from the EDA and the council appointed Councilmember Katie Bernhj elm to fill his seat on the EDA. Steve Corraro's seat expired on the EDA and no school board applications were received. At the February 4 council meeting, it will be proposed to change one school board seat to a resident seat. During the board and commission interviews a resident was selected to fill that seat. Mayor Larson mentioned he was leaving the EDA to provide for staggered councilmember terms on the EDA. 10. ADJOURN MOTION by Wilson, second by Craig to adjourn at 7:31 p.m. APIF,MOTION CARRIED. Respectfully submitted, CIJ.A,th%a MuLLer Cynthia Muller Administrative Assistant FttRitt- i City of Farmington or a -, 430 Third Street ;' Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 's°+r .ao+n'` www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: February 28, 2019 INTRODUCTION/DISCUSSION Please find attached the monthly financial statements for the EDA. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit Actual vs. Budgeted Revenues and Expenses D Exhibit Financial Snapshot- February w 0 O O O Q' O tc') N N.m 0 0 0 0 0 (n •-• ! M N M: d`- O W (0 N 1�"7. O O,0 O O a O L M'(D hY - '• 8 O M M 0 M 0 N" tq N CO O O O) CO N N N 7 N N M h N M (0 h K) co det ca d _ (a Ci a al a> 0 0 0 00I-- 0000000 0 N. _h 00 0 ^ • O M 0 O M 00 0 M M (O() O O O O O. - coCO N N" r d' W N fr- N �: O O 0 0, O (A co O N l 0 0'0 tC) 1� N. O N i CO M O) N .', CO 7 D) CO CO N M t(7 et #} e- N O) d a N v 000 0' O O O O,O 0 0 0 O,O O O 0 E r w V Q N o 0 0 0 (0 0 0 0 0 0 0 0 0 0 0 0 0 0 o a r 0 m �ioo C)0 O a N Z L O,0 0 0', 0 0',0 0 0 0 0',0 0 0 0 0 01 0 0 0 '0% O▪ r 0 O O O Q O O 0 0 0 0 0 0 0 0 0 0 0 O O O Qk N „ E 7 r V O O.a N N w- 0 0 0 0 0000000000000 O O O,' 0 Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Actual Budget Unit Account Description 2019 2019 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH 240,560.45 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -275,105.70 2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS 0.00 -2,300.00 12000-HRA/ECONOMIC DEVELOPMENT 5205 OPERATING TRANSFERS -4,166.66 -50,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 1 0.00 11,680.00: 2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 634.60 4,000.00! 2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 693.08 8,317.00 2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 20.90 300.00 2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 10.83 130.00 2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPMENT 6460 SUBSCRIPTIONS&DUES I 1,220.00 2,500.00 2000 HRA/ECONOMIC DEVELOPMENT6470 TRAINING&SUBSISTANCE 340.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 1 0.00 1,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6492 ADVERTISING ' 0.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 555.00 17,000.00 12000-HRA/ECONOMIC DEVELOPMENT 7310 OPERATING TRANSFERS 237.50 2,850.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 1,977.00 1 0.00 1,977.00 I 0.00 1,977.00 2/25/2019 1:19:15 PM Page 1 of 1 o W � City of Farmington ,© 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 . www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Annual Organizational Items DATE: February 28, 2019 INTRODUCTION/DISCUSSION Attached are the proposed 2019 Economic Development Authority(EDA) By-Laws. Section 1, subdivision 3 of the by-laws requires direction from the EDA regarding the following: a. Election of Officers The EDA By-Laws provides that each year, the EDA shall choose a Chairperson and Vice- Chairperson. A Secretary and Treasurer must also be appointed which typically is assigned to the Executive Director, as neither needs to be a commissioner. In 2018 Mayor Larson served as Chair and Commissioner Jolley served as Vice-Chair. b. Meeting Schedule The EDA shall establish a meeting schedule for the year. Attached is the City's Board and Commission meeting calendar which identifies the date of each EDA meeting. EDA meetings are held the fourth Thursday of each month at 6:30 p.m. Normally, if a meeting falls on a holiday, the meeting is held the following Thursday. In 2019, Thanksgiving falls on the fourth Thursday. Therefore, the November 2019 EDA meeting will be held on the third Thursday of November. EDA members should confirm that this meeting schedule works for all members. c. Acknowledge Official Newspaper The EDA shall acknowledge City Council's designation of the official newspaper. For 2019 the official newspaper is the Dakota County Tribune. Please provide action for the above listed items. A copy of the current by-laws is enclosed. ACTION REQUESTED Approve the 2019 Economic Development Authority By-laws, elect officers, approve the 2019 EDA meeting schedule, and acknowledge the City Council's designation of the official newspaper. ATTACHMENTS: Type Description o Exhibit EDA By-laws D Exhibit Meeting Calendar 2019 ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS These By-Laws, when adopted, are intended to deal with matters not otherwise covered by State Law, City Ordinance or elsewhere. Section I—Meetings SUBD. 1 —Regular meetings of the Economic Development Authority shall be held on the fourth(4th) Thursday of each month at 6:30 p.m. Any regular meeting falling upon a holiday shall be held on the following Thursday at the same time and place. All meetings, including special and adjourned meetings, shall be held in the City Hall unless otherwise designated. SUBD. 2— Special meetings of the Authority may be called by the Chairperson or in written form by any other two (2)members of the Authority, filed with the Executive Director. The Executive Director may also call a special meeting. At least three (3) days before the meeting, the Executive Director shall notify each member of the time,place and purpose of the meeting by causing written notice thereof to be delivered to him/her by e-mail. At least three (3) days prior to the meeting,the Executive Director shall also post notice of the meeting and if applicable, notify each person who has filed an applicable written request for notice, or may, if necessary,provide such other more restricted notice, including but not limited to (as allowed by Statute, such as) M.S. 471.705, subd. 1C, paragraph g, " if a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are satisfied with respect to that person, regardless of the method of receipt of notice." Emergency meetings may be held because of circumstances that, in the judgment of the Authority require immediate attention. The notice of special meeting shall state the item(s)to be discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken if any member objects. Any special meeting attended by a majority of the Authority members shall be a valid meeting for the transaction of business that may come before the meeting. SUBD. 3 —At the regular Authority meeting in February of each year,the Authority shall (1) acknowledge City Council's designation of the official newspaper; (2) establish the meeting schedule for the year; (3) choose a Chairperson and a Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability or absence, and in case of a vacancy in the office of Chairperson, and until a successor has been appointed and qualifies to fulfill the duties of Chairperson, and; (4) appoint a Secretary and Treasurer, which need not be a commissioner. SUBD. 4—All Authority meetings, as defined by State Law, including special and adjourned meetings shall be open to the public. The Authority Attorney shall advise the Authority in writing as to their interpretation of the state "Open Meeting Law" and all new members shall be provided such written interpretation. 1 Section II Presiding Officer; Rules of Order SUBD. 1 —The Chairperson shall preside at all meetings of the Authority. In the absence of the Chairperson, the Vice-Chairperson shall preside. In the absence of both,the Executive Director shall call the meeting to order and shall preside until the Authority members present at the meeting choose one of their members to act temporarily as presiding officer. SUBD. 2—The presiding officer shall preserve order, enforce the rule of procedure herein prescribed, and determine all questions of procedure and order. Except as otherwise provided by statute or by these rules, the proceedings of the Authority shall be conducted in accordance with the following rules of order: A. A motion must be seconded before being considered by the Authority and the presiding officer must recognize mover, as well as the seconder. B. Any motion may be withdrawn by its mover with the consent of his/her second. But a motion, once debated, cannot be withdrawn except by a majority vote of the Authority. C. A motion will not be subject to debate until it has been stated by the presiding officer and he/she has opened it to debate. D. Each member, while speaking, shall confine himself/herself to the question at hand and avoid all personal, indecorous or sarcastic language. E. Whenever any member of the Authority desires to speak on any question, which affects him/her personally,he/she shall first vacate his/her chair and shall not resume his/her seat until the matter under consideration has been acted upon. He/she shall be allowed to make comments on the question as a private citizen only and while a member of the audience. F. Whenever public hearings are held, the presiding officer shall allow any member of the public,the privilege of speaking. A reasonable time shall be allowed to anyone as long as they are not repeating points already made. The presiding officer shall maintain order and may rule anyone out of order. G. At any meeting,the presiding officer will allow the public to participate as long as there is reason to believe the input is beneficial. SUBD. 3 —Any member may appeal to the Authority from a ruling of the presiding officer. If the appeal is seconded, the appealing member may speak first on the reason for his/her appeal. General discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is approved by a majority of the members present. 2 Section III—Agendas SUBD. 1 — The agenda shall be prepared by the EDA Executive Director and shall be closed at noon on the Friday preceding the meeting for publication purposes. SUBD. 2—Any member may place an item on the agenda by so instructing the Executive Director. SUBD. 3 — No item shall be placed on the agenda unless the item is expressed in such a way as to clearly show the subject matter involved. SUBD. 4 — The agenda add-ons are subject to approval by a majority vote of the members present and further such add-on items may be discussed, but no action may be taken if any member objects. Section IV—Order of Business SUBD. 1 —Each meeting of the Authority shall convene at the time and place appointed therefore. Authority business shall be conducted in the following order: 1) Call to Order 2) Pledge of Allegiance 3) Roll Call 4) Approve Agenda 5) Citizen Comments 6) Approve Consent Agenda a. Minutes b. Monthly Statements c. Additional Consent Agenda items 7) Public Hearings 8) Discussion Items 9) Director's Report 10)Adjourn SUBD. 2—The order of business may be varied by the presiding officer, except that all public hearings shall be held at the time specified in the notice of hearing. Section V—Minutes SUBD. 1 —Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her absence,his/her designee. In the absence of both, the presiding officer shall appoint a secretary pro tern. Resolutions need not be recorded in full in the minutes if they appear in other permanent records of the Executive Director and can be accurately identified from the description given in the minutes. SUBD. 2—Minutes of each meeting shall be reduced to typewritten form. At the next regular Authority meeting, approval of the minutes shall be considered by the Authority. The minutes need not be read aloud, but the presiding officer shall call for any additions or corrections. If there is an objection, the Authority shall vote upon the addition or correction. If there are no additions or 3 corrections, the minutes shall stand approved by motion. If there is an objection,the Authority shall vote upon the addition or correction and approve the minutes by motion as amended. Section VI—Quorum and Voting SUBD. 1 —At all meetings a majority of all members shall constitute a quorum for the transaction of business. SUBD. 2—The votes of members on any question pending before the EDA shall be by voice votes. Roll call vote can be requested by any member, except for the following agenda items; approval of the agenda; approval of the consent agenda; and the adjournment. The names of those voting for and against the question shall be recorded in the minutes. If any member present does not vote,the minutes shall state: "Abstain:Name". SUBD. 3 —Except as otherwise provided by statute, a majority vote of the quorum shall prevail. Section VII—Executive Director The Authority may appoint and provide for annual performance reviews of an Executive Director. Section VIII—Suspension or Amendment of the By-Laws SUBD. 1 —These by-laws may be temporarily suspended by a unanimous vote of the members present. SUBD. 2—These by-laws shall not be repealed or amended except by a majority vote of the whole Authority after notice has been given at some preceding meeting. Section IX—Effective Date SUBD. 1 —These by-laws have been adopted by the Economic Development Authority on the 28th day of February, 2019 and become effective immediately. Attest: ,11 EDA Executive llirector EDA Chairperson Date: cg/ /7 Date: /./1-5g I 9 4 City of Farmington 2019 Meetings, Holidays, Pay Days January 2019 July 2019 itt It(iJ / SMTWT F S SMTWT F S 1 2 3 - 5 ini 2... 3 4 . . 6 6 10 11 12 7 8 11 12 13 13tl 15 16 1719 14 16 17 18 20 20ill 23 25 2621 23 24 26 272729 30 31 28 29 30 31 P.•41q February 2019 August 2019 SM TWT F S SMTWT F S . 2 1 . 3 35 6 7 8 9 4 6 7 8 9 10City Holidays 10 - in 14 111. 16 11 15 17 17 18 20 21 22 23 18 20 21 23 24 .City Council 24 26 27 ® 25 27 28 29 31 II EDA March 2019 September 2019 SM TWT F S SMTWT F Si Parks and Rec Commission 1 2 1 2 4 5 6 7 3 4 5 6 7 8 9 8 9 ;1 1 1 12 '_° 3 14 1 Planning Commission 10 11 12 13 14 15 16 15 17 18 19 20 21 17 18 19 20 21 22 23 22 24 25 71:-= 7` 28 RRC Advisory Board 24 25 26 27 28 29 30 29 30 31 .Water Board April 2019 October 2019 11111 Pay Days SMTWT F S SMTWT F S 1 2 3 4 5 6 1 2 3 4 5 7 8 9 10 11will'' , 13 6 7 8 9 10 11 12 14 15 16 17 18 19 20 13 14 15 16 17 18 19 21 22 23 24 25 24 27 20 21 22 23 24 25 26 28 29 30 27 28 29 30 31 May 2019 November 2019 SMTWT F S SMTWT F S 1 2 3 4 1 2 5 6 7 8 9 10 11 3 . 5 6 7 E 9 12 13 14 15 16 17 18 10 11 2 X14 15 16 19 20 21 22 23 24 25 17 19 20a# 23 26 27 28 29 30 31 24 26 27 28 29 30 June 2019 December 2019 SM TWT F S S MTWT F S 1 1 r21 3 4 5 . 7 2 3 4 5 6 7 8 8 9 1 1 = 12 13 14 9 10 11 12 13 14 15 15 16 17 18 19 21 16 17 18 19 20 21 22 22 23 24 25 _� 27 28 23 24 25 26 27 28 29 29 30 31 30 City of Farmington , 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 .4 PRO044www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Open Meeting Law DATE: February 28, 2019 INTRODUCTION/DISCUSSION Please see the attached memo from City Administrator, David McKnight regarding open meeting law. ACTION REQUESTED ATTACHMENTS: Type Description o Cover Memo Open Meeting Law Via �1aufz City of Farmington 430 Third Street ,, - �;; Farmington,Minnesota soA�1a 651.280.6800.Fax 651.280.6899 fir.A Pao*d'`� www.cilarmington.mn.us DATE: February 14, 2019 TO: Farmington Boards and Commissions FROM: David J. McKnight, City Administrator 0 CC: Farmington City Council SUBJECT: Open Meeting Law Please let me take a minute to thank all of our board and commission members for dedicating your time to serve our community. The city council values your input and appreciates the time and effort each of you put into your specific group. Thank you on behalf of our entire community for helping make it a great place to live. Open Meeting Law The open meeting law requires that meetings of public bodies must generally be open to the public. The law serves three vital purposes: 1. Prohibits actions from being taken at a secret meeting where the interested public cannot be fully informed on the decisions of public bodies or detect improper influences. 2. Ensure the public's right to be informed. 3. Gives the public an opportunity to present its views. The open meeting applies not only to the city council, but also to each of our boards and commissions as well. While the work of ensuring that meeting dates, times and locations are made public in a timely fashion falls upon city staff, it is important for each of you as board or commission members to remember the following items in regards to the open meeting law. ✓ Please avoid gathering in a quorum of board/commission members outside of the regular meeting. On the chance that a quorum is present at a social gathering, please do not discuss city business. ✓ While there are exceptions to the open meeting law, these small number of exceptions typically pertain to the city council meeting in a closed session on a very small number of topics. V Avoid having a serial meeting by telephone, email, texts or social media. A serial meeting example is when one member contacts a second member and shares how a third or fourth member feels on a topic. Avoid these types of pitfalls and have these discussions as a part of the regular public meeting. V There are legal penalties for those who intentionally violate the open meeting law. A civil penalty of$300 for a single occurrence is the first penalty and the public body may not pay the penalty. A number of years ago I attended a legal training on this issue that is encompassed below- The most basic summary of this sometime complicated law is to conduct city business at the meetings, call city staff with any questions you have or assistance you need and when the meeting is over, go home. If you have questions or need additional information, please let me know. Thank you for your time on this important matter and thank you for everything you do for Farmington. • 2 41104 City of Farmington U ,, 430 Third Street Farmington, Minnesota \a. 651.280.6800 -Fax 651.280.6899 4► www.ci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 2019-2021 Strategic Plan for Economic Development Priorities and Work Plan DATE: February 28, 2019 INTRODUCTION/DISCUSSION The EDA adopted the attached 2019-2021 Strategic Plan for Economic Development(Strategic Plan)at its meeting on January 24, 2019. Upon approval, a request was made to have the objectives and tactics summarized in a format that will allow the EDA to succinctly track progress on specific action items. That document is attached for review. At its core the Strategic Plan reflects a number of influencing documents including the 2040 Comprehensive Plan, City Council priorities, and past studies. The outcomes noted in the approved Strategic Plan are summarized as follows: • Expand and Diversify the Tax Base • Encourage development that brings additional goods and services to Farmington • Promote the economic and physical health of older sections of Farmington • Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington Conduct the business of the EDA to maximize its effectiveness All work of the EDA should relate to one of these key objectives as we work to further the mission and vision of the EDA. I would like us to take time at our meeting to discuss a number of the included tactics and action items so that work can be prioritized for the next several months. ACTION REQUESTED Provide direction on items outlined in the 2019-2021 Strategic Plan for Economic Development. ATTACHMENTS: Type Description D Exhibit 2019-2021 Strategic Plan for Economic Development D Exhibit Strategic Plan Summary and Status Report Strategic Plan 2019 - 2021 Farmington Economic Development Authority • w � s° , rte • •.,1 r' January 2019 NORTHLAND PUBLIC FINANCE EDA Strategic Plan 2019-2021 CONTENTS Contents 1 Introduction 2 Context 3 EDA Powers 3 Comprehensive Plan 3 City Government 4 EDA Resources 5 Strategic Plan 6 Objective: Expand and Diversify the Tax Base 6 Objective: Encourage development that brings additional goods and services to Farmington 11 Objective: Promote the economic and physical health of older sections of Farmington....12 Objective: Effectively communicate information about the EDA within City government, to the community and to people and businesses outside of Farmington. 13 Objective: Conduct the business of the EDA to maximize its effectiveness. 14 January 2019 EDA Strategic Plan 2019-2021 2 INTRODUCTION This document presents the Strategic Plan for the Economic Development Authority (EDA) of the City of Farmington.The EDA Strategic Plan serves several purposes: • The plan articulates the vision,mission and fundamental principles that guide decision making and actions for the EDA. • The plan provides a framework for identifying potential roles for the EDA,prioritizing use of resources and periodically reviewing actions taken by the EDA. • The plan serves as a tool for communicating information about the EDA to the city council,city departments and advisory boards,partner organizations in the economic development community and Farmington residents and businesses. The Strategic Plan focuses on the years 2019 through 2021. Vision Statement The Economic Development Authority's vision is to improve the economic vitality of the City of Farmington and to enhance the overall quality of life by attracting and retaining businesses, creating partnerships,fostering employment opportunities, promoting workforce housing, business growth, and expanding the tax base through development and redevelopment. Mission Statement Farmington is commerce friendly, responsive, and innovative in the realm of economic development. The Economic Development Authority's mission is to position Farmington as one of Minnesota's most desirable cities to open,grow, and maintain a business. January 2019 EDA Strategic Plan 2019-2021 3 CONTEXT The actions of the EDA do not occur in a vacuum,but within the context of city government and development forces that affect Farmington and the region. Understanding this context is an important element of creating and implementing the strategic plan. EDA Powers The powers of the EDA come from both State Law and city enabling resolution. The EDA can exercise the powers set forth in Minnesota Statutes,Section 469.090 through 469.108 unless otherwise limited by the city council.The Farmington EDA was established by Resolution R104- 05 (the"Enabling Resolution"). The Enabling Resolution empowers the EDA to use all statutory authority with the following exceptions: • The sale of all bonds or other obligations issued by the EDA shall first be approved by the city council. • The EDA shall follow the budget process for city departments as may be provided by the city and as implemented by the city council and Administrator. • All official actions of the EDA shall be consistent with the city comprehensive plan and official controls implementing the comprehensive plan. The Enabling Resolution also transferred all activities,programs,operations and authority relating to economic development from the Farmington Housing and Redevelopment Authority (HRA).The EDA is authorized to exercise all of the powers granted to the HRA pursuant to Minnesota Statutes,Sections 469.001 through 469.047. No actions contemplated by the Strategic Plan are impaired by the limitations of State Law or the Enabling Resolution. Comprehensive Plan The Economic Development chapter of the 2040 Comprehensive Plan provides a framework of the activities of the EDA. "The Economic Development Plan (Chapter 9 of the Comprehensive Plan)provides a high level and long- term roadmap for the City of Farmington and its partners (public,private,and nonprofit sectors) to work together to enhance employment, investment and quality of life opportunities that benefit the entire community. The city recognizes that local government has a responsibility for creating an environment in which economic development can occur. This plan also serves to examine and strengthen the city's ability to compete effectively and prosper in both the regional and increasingly global economy." The Comprehensive Plan contains eight(8) economic development goals. As part of the process of creating this Strategic Plan,the EDA validated the importance of these goals for guiding the actions of the EDA. The following list contains the economic development goals in order of the ranking of the EDA Board: January 2019 EDA Strategic Plan 2019-2021 4 1. A three-year Strategic Plan for Economic Development that provides a dynamic and actionable tool for achieving the community's economic development vision. 2. Cultivation of strong relationships between existing businesses and the city to increase business retention. 3. A desirable commercial environment for residents is created through growth from existing and new businesses. 4. Healthy and diversified growth of existing and new businesses to achieve the community's 2030 and 2040 employment projections. 5. Redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas. 6. Public and private sector reinvestment in downtown to revitalize it as the community's commercial,cultural,and recreational center. 7. Diverse housing options and quality of life amenities that support the needs and preferences of the community's workforce into the future. 8. A well-trained and adaptable workforce is maintained within the community to support the projected business and job growth. These goals provide a useful tool for evaluating EDA activities. How does the activity help to achieve the goals of the Comprehensive Plan?A consistent connection between these goals and EDA activities ensures that the EDA meets its mandate of consistency with the Comprehensive Plan. City Government An essential factor shaping the Strategic Plan is the EDA's fit within the overall structure of the city. The EDA is one of five advisory boards and commissions established by the city council. The EDA is different from any other board in that it has the power and resources to undertake projects in a relatively autonomous manner.State Law designates EDAs as political subdivisions. Farmington Community Community y City Council Development Administrator Residents Business Director Economic —.�---. ) Development Authority(EDA) The EDA is governed by a 7-member board of commissioners appointed by the city council. Members of the EDA board consist of two city council members,one Independent School District 192 school board member,and four residents. Economic development staff is part of the January 2019 EDA Strategic Plan 2019-2021 5 city's Community Development Department.The Community Development Director serves as the Executive Director of the EDA. This structure combines the dedicated focus on economic development and statutory powers of the EDA with a day-to-day foundation in the core structure of the city. EDA Resources Creating and implementing the Strategic Plan must be done with an eye towards the resources of the EDA. With limited resources,the effective use of resources should be a factor in evaluating current and future activities. Do the potential benefits of the action merit the allocations of EDA resources? The most important resource of the EDA is city staff. The experience and technical skills of economic and community development staff provide the capacity to successfully achieve EDA objectives.The staff resource available to the EDA is a finite commodity. It is also a commodity that serves other functions within city government. January 2019 EDA Strategic Plan 2019-2021 6 STRATEGIC PLAN The EDA Strategic Plan is based on the following Core Strategies: • Attract new businesses that provide jobs,needed goods and services,and tax base • Encourage the retention and expansion of existing business • Encourage revitalization and redevelopment • Manage EDA programs and projects • Be the voice of economic development in city government The Core Strategies guide EDA actions. All actions shall be consistent with one or more of the Strategies. Objective: Expand and Diversify the Tax Base Economic development is not an end itself,but rather a means to achieve certain outcomes. An important outcome in Farmington is to grow the property tax base. Preliminary tax rates for taxes payable 2019 show Farmington with the fifth highest city tax rate for Dakota County cities (over 1,000 population).When all other taxing jurisdictions are included,the total tax rate in Farmington is the highest in Dakota County. Preliminary 2019 Tax Rates 160.00 -- 140.00 120.00 ccx 80.00 12 60.00 — 40.00 II , 1 , 20.00 ?ate ?ate\ a� C� eo'r� • �°,�o� ��j\\e .�r�� o�� Ja�\o� AY �a�a� •City Rate All Others Rate Figure 1 Tax base is a key factor in a higher tax rate. A lower tax base means that the city must tax at a higher rate to generate revenue needed to operate the city. A comparison with other Dakota County cities provides some perspective on Farmington's tax base. Figure 2 shows total Pay January 2019 EDA Strategic Plan 2019-2021 7 2019 Taxable Market Value by property classification. Figure 3 compares the distribution of Taxable Market Value among the property classifications. Taxable Market Value Taxes Payable 2019 8,000,000,000 7,000,000,000 6,000,000,000 All Other 5,000,000,000 ■Agriculture 4,000,000,000 Industrial 3,000,000,000 •Commercial 2,000,000,000 111 la Apartments 1,000,000,000 ■ Residential Farmington Lakeville Rosemount Hastings Apple Valley Figure 2 Taxable Market Value Taxes Payable 2019 100% annenESSMEN 90% 80% 70% ■ ■ U All Other 60% ■ ■ ■ U ■Agriculture 1111 50% ■ ■ ■ Industrial 40% ■ ■ 1111 ■Commercial 30% ■ ■ ■ ■ ■Apartments 20% ■ ■ ■ ■ Residential 10% ■ ■ ■ ■ 0% Farmington Lakeville Rosemount Hastings Apple Valley Figure 3 January 2019 EDA Strategic Plan 2019-2021 8 • Hastings has less Taxable Value than Farmington($1.52 billion to$1.74 billion). However,the portion of the total tax base in commercial and industrial property is more than double in Hastings (11%)in comparison to Farmington (5%). • The commercial/industrial share of the tax base in the comparison cities ranges from 9.66% in Apple Valley to 11.24% in Rosemount. • Rosemount provides a good contrast to Farmington. The cities have similar populations (Farmington 22,421 -Rosemount 23,956),but Farmington has 29% less tax base.Total Taxable Market Value per capita in Farmington is$87,866 and$116,100 in Rosemount. Growing and diversifying the tax base has a variety of benefits. A growing tax base gives the city more flexibility in funding services and capital improvements. This flexibility would likely extend to the EDA budget.The demands for operating revenues may limit the ability to lower the tax rate,but a growing tax base lessens the need to raise rates. Growing the tax base is one of the only means available to the city to promote reductions in other parts of the total tax rate. A diversified tax base changes the impacts of economic downturns as value changes vary among property types. Commercial and industrial development make different use of city services than residential with the potential for comparably less pressure to increase services and spending. EDA efforts to grow the tax base must be done thoughtfully and strategically. The Minnesota property tax system affects the ability of the city to realize growth in the tax base from new development.40% of all new commercial-industrial value goes into the Fiscal Disparities Pool and is not available for local taxation.The use of tax increment financing (TIF) or tax abatement defers the benefits of new tax base until the financial assistance ends. Property class rates set by the Legislature convert the Assessor's Estimated Market Value to Tax Capacity (taxable) value at different rates. Figure 4 illustrates these points. This chart compares the Tax Capacity value available to the city (and other taxing jurisdictions)from alternative development of 100 acres. January 2019 EDA Strategic Plan 2019-2021 9 Tax Capacity From Alternative Land Uses Industrial Retail Single Townhome Acres 100 100 100 100 Lot Coverage/Density 30% 30% 3 6 Development(SF or Units) 1,306,800 1,306,800 300 600 EMV per SF or Unit 65 125 330,000 330,000 EMV 84,942,000 163,350,000 99,000,000 198,000,000 Tax Capacity 1,698,090 3,266,250 990,000 1,980,000 Fiscal Disparities 40% 40% 0% 0% Net Local Tax Capacity 1,018,854 1,959,750 990,000 1,980,000 2,500,000 2,000,000 z 1,500,000 U ro co U X 1,000,000 I- 500,000 0 Industrial Retail Single Townhome Figure 4 Expansion of the tax base also comes from within. The Economic Development chapter of the Comprehensive Plan notes that"research from numerous sources shows that existing businesses create 60%-90% of all new economic growth in a community". A focus on local businesses is a more efficient means of expanding the tax base. Resources applied to business expansion are more likely to yield returns than using the same resources to compete with other cities. Resources are applied to businesses already in Farmington rather than competing with January 2019 �� EDA Strategic Plan 2019-2021 10 other cities. The use of financial incentives (if needed) is typically lower and more closely aligned with project need. Tactics 1. Create and maintain strong relationships and lines of communication with local business to identify opportunities for the EDA to enhance success and encourage expansion. 2. Be prepared to receive and effectively respond to inquiries about locating businesses in Farmington. 3. Make use of tax increment financing and tax abatement,pursuant to city policies,to achieve the objectives of the Strategic Plan. 4. Use tax increment financing and tax abatement only when the benefits received from the development outweigh the deferred tax base. 2019 Action Plan 1. Create and conduct a comprehensive business needs/assessment survey. 2. Review and update (as needed) economic development promotional materials. January 2019 EDA Strategic Plan 2019-2021 11 Objective: Encourage development that brings additional goods and services to Farmington Building and maintaining a strong core of commercial development is important to Farmington. When necessary goods and services are not available locally,residents travel to other cities to shop. These trips often result in additional shopping that could have occurred in Farmington. The EDA seeks to encourage commercial development that reduces this out-migration and complements existing businesses. The EDA has limited control over the type and pace of commercial development. Market forces tend to be the primary force in commercial growth. In that regard,commercial development and job growth are directly related. New,well-paying jobs located in Farmington may produce the demand for new housing. These new"rooftops" create the market sought by commercial development. The EDA can facilitate commercial development by providing desirable business districts. Farmington has a history of creating community plans for such business districts.Plans for Vermillion River Crossing and Downtown Farmington provide the framework for public and private investment. In 2019,the city will be completing a plan for development in the Highway 3 Corridor. The ongoing implementation of these plans is an important EDA objective. Tactics 1. Attract new businesses that produce jobs that are likely to create or retain households and expand the local market for new commercial development. 2. Prepare and implement plans that provide desirable locations for new commercial development. 2019 Action Plan 1. Continue to work with brokers and land owners to attract developments to Vermillion River Crossings area. 2. Create ongoing means of communicating actions related to the implementation of the Downtown Redevelopment Plan to the EDA. 3. Play an active role in the completion of the Highway 3 Corridor Study and seek effective implementation strategies. January 2019 EDA Strategic Plan 2019-2021 12 Objective: Promote the economic and physical health of older sections of Farmington. One of the Economic Development Goals of the Comprehensive Plan is"redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas". In reality,there are two aspects to redevelopment.The most effective strategy is to promote the economic and physical health of the community to avoid the need for redevelopment. If the need for redevelopment exists,however,it is important to prevent blighting conditions to spread to other properties. The EDA has taken a proactive approach to redevelopment by creating plans for the Downtown and the Highway 3 Corridor. These plans provide a framework for public and private investment. Implementation of these plans is not the sole responsibility of the EDA. The EDA must coordinate its efforts with the city council,planning commission and other stakeholders. Tactics 1. Engage on a consistent basis with the planning commission to share goals and develop strategies. 2. Support the outcomes and implementation of the Highway 3 Corridor Plan. 3. Review and promote existing programs that target key areas. 2019 Action Plan 1. Schedule quarterly joint work sessions with the planning commission and semi-annual work sessions with the city council to align priorities. 2. Complete and identify initial implementation steps of the Highway 3 Corridor Plan. 3. Meet with Dakota County CDA staff(or invite to EDA meeting) to discuss programs. January 2019 EDA Strategic Plan 2019-2021 13 Objective: Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington. Communication is an essential function of the EDA. Communication with the city council promotes collaboration on shared objectives and builds the foundation for the financial resources required by the EDA. Communication with the community explains the work of the EDA,highlights the positive impact on the community and offsets potential misinformation. Communication informs the business community,both within and outside of the community, about the opportunities to do business in Farmington and the assistance available from the EDA. The city's website is the most important communication tool for the EDA.The website is the place people look for information about the EDA. Farmington's online presence for economic development should be guided by several factors: • Information about the EDA and economic development in Farmington must be easy to find on the website. • The information on the website must be useful. • The form and content of the pages devoted to economic development should convey a positive message that creates interest in Farmington. Tactics 1. Utilize the city's website as the primary point of information about the EDA and economic development in Farmington. 2. Ensure that the website contains useful information for businesses evaluating potential development in Farmington. 3. Make use of the newsletter and other ongoing city communications to provide information about the EDA. 2019 Action Plan 1. Review other websites to identify elements that could be incorporated into Farmington's website. 2. Review and enhance the city's webpage(s) related to Economic Development. 3. Develop one or more new communications tools to relay the messages and work of the EDA. 4. Shift the monthly"Director's Report" in the EDA packet to a more public-facing newsletter. 5. Develop a social media strategy to promote the work of the EDA. January 2019 EDA Strategic Plan 2019-2021 14 Objective: Conduct the business of the EDA to maximize its effectiveness. While this objective seems obvious,it is important to make it a stated objective of the Strategic Plan. The EDA operates with limited resources in terms of funding, staff time and board responsibilities. All decision-making must consider the effective use of these limited resources. Tactics 1. Provide consistent information to the EDA about its financial condition and existing obligations. 2. Provide the EDA with consistent updates on the status of the action plans for the Strategic Plan and other ongoing initiatives of the EDA. 3. Annually update the action plans in the Strategic Plan. 2019 Action Plan 1. Provide annual comprehensive review of the EDA's finances in March. 2. Develop a standardized template for providing specific project updates. 3. Explore ways to enhance the effectiveness of monthly board meetings. 4. Create a process to annually review and update action plans in the Strategic Plan. January 2019 0 0 Q) CC cn Y co V) h 3 Y f0 N VI S N 0 " go O , U m ma c -o a 0 00 m •c I. y 0 cc u s>_ c a aw v o o mv O. « LU o oa ¢ v v v v m ' '� > = c ;; v ° o Lwv o v v « $ E E L ' m m c3 E 2 5 cz vc 0 c -5ao vo u 5 .> t1. .0, 3 v c '12 s •5 3 v a u c ° 4 v . 5w c 0 ' c y 3 n N 3 E °. « vLa > E 3 n•- E E a 11_,aE ¢ v L- c o o v >o. u apv s CO u > c L _OF 0Ect L _ 3mt s C o Yc •a o C o c c ' ama' c a, Z ctN ry v c c 0 2'1. 2- a U a u d ` Yoc ° O. H N a-1 E L ° c a Yo 00 La oEo > c E ` v N 'p0 ' o m 13 m a v ai o £ 0. 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Drs. Carey and Jessica Tri noted their commitment to Farmington as we helped them celebrate their new office. Highway 3 Corridor Plan Draft recommendations and project narrative are being developed by the consultant team as work on the Highway 3 Corridor Plan progresses. The project team received lots of comments at the Farmington Expo on January 26th. A draft plan should be available for discussion at our meeting in March. Riste Lot Update I will provide the EDA with an update on the potential sale of the Riste lot including progress made since our meeting in January. Miscellaneous Articles MinnPost— 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove(2/18/19) Dakota County CDA Foreclosure Report—December 2018 Open to Business Q4 Report NEXT MEETING Our next regular meeting is March 28th at 6:30 p.m. ACTION REQUESTED None, this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description v Exhibit MinnPost- Q&A with new DEED Commissioner Steve Grove Dakota County CDA Foreclosure Report- D Exhibit December 2018 o Exhibit Open to Business Q4 Report 2/22/2019 'The innovation economy and its growth in this state is critical': a Q&A with new DEED Commissioner Steve Grove MinnPost MINNPOST GOOD JOBS MinnPost's Good Jobs beat is made possible by a grant from MSPWin, a philanthropic collaborative committed to strengthening the workforce in the Twin Cities metro area.MSPWin plays no role in determining the content of the coverage. 'The innovation economy and its growth in this state is critical' : a Q&A with new DEED Commissioner Steve Grove By Walker Orenstein 102/18/2019 Steve Grove, the new commissioner of the Department of Employment and Economic Development(DEED),traveled a somewhat unusual path to his job in Gov. Tim Walz's administration. orrilkol Born in Northfield, Grove spent a few years as a reporter before . joining YouTube and creating a division that worked to bring news and political content to the video site. He later directed the Google News Lab, which runs projects aimed at boosting .. local journalism around the country, and co-founded a nonprofit with his wife Mary, Silicon North Stars, which flies high-schoolers to Silicon Valley for tech camps. (Full disclosure: He was also formerly on the MinnPost board.) Grove moved back to Minnesota from California last year before being picked as DEED commissioner. He's inheriting an economy with low unemployment rates,but one that faces challenges. Baby boomers are retiring in droves and leaving Steve Grove open jobs behind them, for one. Minnesota's wide economic disparities between white people and racial minorities are another. MinnPost talked with Grove to get a preview of his priorities at DEED and advocacy for supporting Minnesota's technology sector. This interview has been edited and condensed for clarity. MinnPost: The governor's budget plan isn't out yet and so there might not be concrete policies or budget numbers you're ready to announce,but what are some things you're focusing on early in your tenure at DEED? https://www.minnpost.com/good-jobs/2019/02/the-innovation-economy-and-its-growth-in-this-state-is-critical-a-qa-with-new-deed-commissioner-sieve... 1/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove MinnPost Steve Grove: I think it's a unique time for Minnesota's economy. One of the things that you understand pretty quickly is, if you're looking to see how healthy our economy is, if you just look at that 2.8 percent unemployment rate, it doesn't really tell the full story. So one of the things we're doing early here is looking at the kinds of metrics and numbers that we want to focus on that tack against the biggest challenges the state faces. Our job vacancy rate is 5.2 percent—which means for every hundred jobs there's 5.2 job openings.That's 4.5 percent up from last year.We've got a huge workforce gap. Our workforce is actually smaller by 40,000 workers than it was a year ago and we've got 0.6 people for every one job that's open.And there's a declining labor participation rate. Part of that is driven by demographics and part of it is just driven by the changing nature of our economy. So part of the early work here is to figure out which numbers do you want to track against and which numbers we want to raise and lower.And it's not just that unemployment rate that we're focused on. I would say... the big things that are on our radar, are of course the talent gap;You hear about that from everyone. The opportunity gap would be the other. The differences between whites and people of color in the state are atrocious.And I think that's something that this government has focused on for some time,but we need to do a lot more and find new solutions to change that dynamic for our economy. I think the innovation economy and its growth in this state is critical to putting Minnesota on the forefront of the 21st century economy and growing the right types of jobs and ecosystems that are going to grow our state and put it on the cutting edge of where the economy is headed.And I think Greater Minnesota prosperity is top of mind too,you know.We want to lead the nation as a state that makes it possible to live anywhere in the state and still participate in the benefits of our global economy. MP: Speaking of our workforce, are there just too few people?What can DEED really do about having not enough people who live here? SG: There is a demographic change,which I think is important if you want to kind of diagnose what the situation is. We've got larger than normal numbers of boomers retiring in the state and you've got a workforce that is primarily growing amongst people of color.And so when you look at the next 25 years,you have 75 percent of our growth in the labor force coming from people of color. That changes the dynamic of your labor force pretty markedly.And so that is part of it. But I think,also,when you look at sort of how the American economy is evolving and the states and cities that are distancing themselves,they're states and cities that are managing the transition from a manufacturing based economy to an innovation and knowledge-based economy. And it's these innovation hubs that you see in states across the country that are drawing top talent from across the U.S. to come and live and work there. I think Minnesota needs to be on the forefront of that trend or we're going to see our best talent want to leave and work in Seattle or Austin or Silicon Valley or New York or Boston. I'm a person who back, 15, 20 years ago, did that myself. ... There's nothing wrong with leaving the state. People should pursue their dreams wherever they want to https://www.minnpost.com/good-jobs/2019/02/the-innovation-economy-and-its-growth-in-th is-state-is-critical-a-qa-with-new-deed-commissioner-sieve... 2/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove I MinnPost pursue them. But we want to make it possible to achieve the biggest,boldest dreams you have by staying right here in the state. So when I talk about the changing nature of the economy being a factor here, it is states and cities who can distance themselves from the rest of the country by being these hubs for innovation that are going to attract top talent.And I should say it's not just about top talent, and not just if you work for Google or Snapchat or some tech company. Studies show that cities and states that can have thriving innovation economies and add what you might call an innovation job also add other jobs to them. There's some studies out of Berkeley that show that for every one job in the innovation economy that has added to an ecosystem,five additional jobs get created both in the sort of professional and service sectors. MP: I've read some of your op-eds about growing the tech sector in Minnesota. How much of your role at DEED will be focused on trying to boost the tech economy? SG: Obviously it's my background,but I don't come at this from having some feeling that the only industry out there to grow is a tech industry. One of Minnesota's greatest assets is it has one of the most diverse state economies in the country.And we should be proud of that fact; we should be proud of our agriculture sector; we should proud of our manufacturing sector.To me, it's more of just looking at the historical trend lines of where our economy needs to go.And I'll end on one of the pieces that you may have read,the one that's in the Op-Ed section of the Strib a few weeks ago, Minnesota's history shows that we've been pretty adept at adapting to economic changes.When you look at how we shifted from growing our farming economy to growing our manufacturing economy after World War II,that was a major shift for us to change the game considerably as it related to wages and put Minnesota in the upper half of state economies nationwide. I think that we're at a similar sort of juncture as manufacturing shifts by the fact of globalization to be thinking about innovation economies as the next wave of job growth and productivity growth. But again, I don't say that just because I have some sort of bias towards'tech jobs are the only good jobs,' but just looking at where growth can come from.Again, it's the jobs in those sectors that can create a lot of other jobs. Don't get me wrong,there are all kinds of challenges that we're tackling at DEED and these problems are more much more complex than that. I think the opportunity gap is a huge one. And I call it the opportunity gap just because I think there's a gap between the kinds of opportunities that people of color have and people that are white have and it's just sort of the facts bear that out. And you know,the unemployment rate is almost twice that of white people for people of color in the state. ... I think that's a challenge that we need to tackle both as a moral issue,but ultimately from an economic growth issue.We need communities of color to have all the same assets as white communities and to grow their labor force and their wages in the state.Then I think one of the things that we're excited about is how to make the economy work across the state. If you're a young person growing up in a small town in Minnesota without fast internet to imagine wanting to stay there because...you need access to the global economy through the Internet that you're not going to get if you don't have broadband. https://www.min npost.com/good-jobs/2019/02/the-i n novatio n-economy-and-its-g rowth-i n-th is-state-is-critical-a-q a-with-new-deed-commissioner-Steve... 3/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove I MinnPost MP: The opportunity gap is an issue that many have long talked about. It's been clearly tough to solve. Is there any policy to address the issue that so far you're liking or wanting to go in a different direction? SG: It's definitely something that we want to focus on and look for great examples of success in as we go forward. I think one overall value I have about it is that if closing the opportunity gap is only one person's job, or is the job of one program or one sort of siloed effort,then it will remain where it is. I think to really tackle that challenge you need to make it a lens through which you look at all of your work.As I begin to look at all that DEED does and the opportunities we have here,we don't want to just create a program for each racial group for example,that kind of checks the box of having done something for that group's employment horizons. We want to look at how to make all that we're doing have a lens towards equity and I think the programs and the work that are the most effective are those that engage business very deeply from the beginning. You look at like the Minnesota Job Skills Partnership and I'm sure you've followed what Summit Academy has done for example with Atomic Data. Bringing in money from DEED, and Atomic Data's labor needs, and then Summit Academy's training program to train new IT professionals for their firms.When you think of workforce development being successful, (it)has a job waiting at the end of it and a business invested from the beginning that can really lead to success. One of the things that is interesting about the whole workforce development space is we used to have an economy where the companies themselves did so much training.That was at a time when a person would get a job and they'd have that same job for 3o years and so it kind of made sense for big corporate to invest in training really deeply.Today's economy is more fluid and so companies do less of that. MP:What lessons are you bringing from the tech world and Google to a state agency? How is that going to translate? SG: It's a good question.And one that I'm asking myself every day as I make this transition.There's in some ways more similarities than I might have imagined, in a sense that I'm coming from a company who operates at global scale and we always talk about the responsibility of scale and how to get scale right.And I think government is an entity that's even more scaled than a company like Google, right?We're,here in Minnesota state government, responsible for the entire state.And so, that scale is also a responsibility. So that part of it sort of feels familiar, if you will. I would say Google is an interesting place and you learn a lot being a leader there and I think one of the things that you realize is that good ideas can come from anywhere and that you want to build the type of systems and processes in your teams that let the best ideas rise to the top. Innovation,for it to work, has to create a culture where you can try and fail and try and fail and try and fail and try and then finally succeed and sort of prototype things and do that at a pace that helps you learn quickly and adapt. Tech companies in Silicon Valley have made that the hallmark of their cultures. I think government can do a lot more there to innovate. But of course there are things which https://www.min npost.com/good-jobs/2019/02tthe-innovation-economy-and-its-growth-in-this-state-is-critical-a-qa-with-new-deed-commissioner-steve... 4/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove I MinnPost you can't fail at consistently because you have a responsibility to your citizens. So part of the leadership challenge is coming in and saying, "Okay,which areas are areas where we can create an area to innovate, an area to try new solutions,the space to try things and fail."And which areas should we not do that? Or can we not do that? Because you have a responsibility to your citizens, it's different than your responsibility that a company has to their shareholders. That's some of the cultural dynamics that I will navigate as I take on this role. ... I'm not going to be the guy who says everything should be run like a private business instead of government. But I also hope that I bring some fresh ideas and fresh lens on how to get things done that come from the fact that I am coming in with corporate experience versus government experience. MP: What are some areas where we can innovate and some areas where we can fail? There has been some debate over bringing back the Angel Tax Credit and to what extent government should come in and make possibly a risky investment.What is the role of taxpayers to shoulder that burden? SG: The ATC isn't about just the government deciding to be risky in a certain area. It's about recognizing that to grow an economy that fosters innovation and allows the startups of today become the Fortune 5008 of tomorrow,you need to invest.And the same way we invest in, our agriculture communities,the same way we invest in manufacturing,the same way we invest in mining,we need to invest in the startup ecosystem. So the landscape of that ecosystem is different.And so the solutions need to look different. But I don't see it as like some special carve out for risk. I see it as investing in an ecosystem and meeting that ecosystem at its level with the right kinds of solutions that will help it grow. So I sort of think about it that way. I do think though that generally speaking, programs like the Angel Tax Credit, and ideas in this space, need to get at this issue of how to lower the risk that people feel in starting a company here. One of the beauties of having a really robust Fortune 500 marketplace here is that if you're a talented engineer,you can get a pretty good job pretty quickly in a big company and not have to take the risk of starting a company.And so we want to kind of de-risk the startup landscape a little bit to the extent that we can to make it more attractive and think about that in a lot of different ways. The ATC is definitely one of them that the governor has considered as you've seen. But there are other solutions, too.And I think we're looking into that space so that it seems a little less scary to take the jump and start something of your own because of the landscape we've created here and ecosystem that have done that have proven to be, I think, successful. So we'll look for ways to do that. MP: I recently moved back to Minnesota from the Seattle area, and the tech economy is thriving over there,but that has come with a lot of challenges. Housing costs were ridiculous, for one. Seattle Times columnist Danny Westneat called Amazon a 'prosperity bomb." I'm curious what you would tell a skeptic of building that kind of world here? https://www.minnpost.com/good-jobs/2019/02/the-innovation-economy-and-its-g rowth-in-this-state-is-critical-a-qa-with-new-deed-commissioner-Steve... 5/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove I MinnPost SG: One of the advantages of us being able to look at how it's been done in other places is that we can learn from mistakes and do things differently here.And so as we think about growing a stronger ecosystem for innovation in Minnesota,we can learn from places where they've gotten that right and places where they've gotten that wrong.And so that's why as we think about that work at DEED,we're not going to be doing that in our little silo of DEED.We're going to be working with housing and education and transportation and all across this government.And I think Governor Walz has stressed that early—he wants his cabinet to be working together every single day across departments to get things done. Because if it's just DEED out there pushing for economic growth without thinking about the housing implications or the transportation implications or the gentrification that can come when certain things take place, as you referenced, then we're not going to get it right. Related Tags: DEED economic development Steve Grove ABOUT THE AUTHOR: Walker Orenstein Walker Orenstein covers the environment and workforce issues for MinnPost. He . ' ' t-w previously covered state government and politics for The (Tacoma) News Tribune.A St. Paul native,he is a graduate of the University of Washington. He can be reached 44 at worenstein@minnpost.com, and you can follow him on Twitter at @walkerorenstein. COMMENTS(4) SUBMITTED BY DAVID BRODEN ON 02/18/2019-11:26 AM. Minnesota economic and workforce vision is central to the MN focus on quality of life and opportunity.The focus on innovation and workforce is an appropriate focus.This overall topic get to several questions which are often biased to one side or the other—what is the role of government—how do we address diversity-what is the balance of education—enabling start ups—inceentives vs.no incentive sand more.When these are considered MN does well fin the core education side—but are we on a strong track to attract or plan for the next businesses which will impact the economy in MN.A few questions to consider;i)economies evolve—but when companies more or transition do we learn to have an understanding of what changed-some good examples do exit;2)the U of M has a new Nanotech center-are we leverageing this for the future,how about the role of the U Technology Leadership center;is the U Ag side moving new crops to the ag economy as climate change evolves the things we grow and eat.—Climate change discussion is often too much on only energy form and not much on what we will eat and do as change occurs.Perhaps a focus on technology and adapting to change requires a bit of attention to guide the shape of the workforce.MN submitted a proposal for the US Army Futures Command-this was not only a organization for military products it was,is and will be an incubator for innovation in materials,AI,autonomous vehicles and energy etc.Question is did MN have a vision for the benefits of this center being in MN?Even a vision would help shape our future.How MN seeks to learn from the past,evolve existing strengthens and have a vision for the opportuntiees and technology,crops etc.must proceed concurrently with workforce activities. Dave Broden LOG IN TO REPLY https://www.minnpost.com/good-jobs/2019/02/the-innovation-economy-and-its-growth-in-th is-state-is-critical-a-qa-with-new-deed-commissioner-Steve... 6/10 2/22/2019 The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove I MinnPost SUBMITTED BY RUTH E.ULVOG ON 02/18/2019-12:18 PM. I found this article and interview extremely interesting;however,as a member of the Disability Community,I am deeply disturbed that there was virtually no mention of those with disabilities—of all types and kinds—not just those with developmental disabilities but those who have"full decks,"are intelligent and as capable as others in the general workforce. Personally,I spent better than 4o years trying to access a good-paying job under the auspices of the Department of Vocational Rehabilitation(DVR)before,during and after it became"DEED."Because I have debilitating chronic conditions as a result of extremely severe sensitivities to Multiple Chemicals,I discovered to my great disappointment that DVR/DEED managed to erect multiple obstacles/barriers at every turn.The Department indicated that if I was unable to meet with their counselors/team members at their office,they could not help me. Obviously,the decades of demeaning and denigrating experiences have left me scarred me for life,emotionally, mentally and physically.Despite my best efforts to the contrary,I hold DVR/DEED responsible for not allowing me and heaven only knows how many others to reach our full potential. This situation must be rectified immediately if not sooner if the myriad of individuals within the Disabilities Community are to be allowed to fulfill their fullest potential within the"One Minnesota"parameters. I would appreciate knowing how Mr.Grove intends to rectify this situation so that others who find themselves in situations similar to mine will not encounter the same types and kinds of discrimination. Sincerely and Respectfully, Ruth E.Ulvog LOG IN TO REPLY SUBMITTED BY RAY SCHOCH ON 02/18/2019-02:44 PM. If,as Mr.Grove suggests,companies are doing less and less job-specific training because it's more and more unlikely that someone will have the same job for decades,or even that the same company will exist for decades, and an increasing share of that"training"burden will apparently fall on the state and/or private training institutions,then I'd argue that the reflexive opposition to new taxes for both K-12 and"higher"education on the part of so much of the business community—taxes that would pay for the kind of job-related training that businesses increasingly don't want to do themselves—is a prima facie case of shooting themselves in the foot at the beginning of the economic development race. If increased and/or different kinds of training are viewed as essential to economic growth and development—to innovation—and companies are increasingly unwilling to take on the costs of that training themselves,the only alternatives would seem to be other parts of the private sector picking up the slack,or the financing has to come from the state.Since there are always competing demands at the state level for an always-limited supply of funds, opposing taxes,especially business taxes,strikes me as counterproductive.The training necessary to keep the state's economy humming as it changes with the times won't be free,and someone will have to pay for it.If businesses are going to foist that burden off on taxpayers,then taxpayers,it seems to me,are well within the bounds of reasonableness to insist that at least some of that financial burden be taken on by the businesses that are likely to benefit from that state-supported training. LOG IN TO REPLY SUBMITTED BY DAVID BRODEN ON 02/18/2019-04:03 PM. As we discuss TRAINING perhaps we need to consider the following question:What is training today and in the future?is training today the same as the past?The answer requires some understanding of what the business is, what the worker does-sit the worker a office,factory,or professional such as a engineer,doctor,IT professional https://www.min npost.com/good-jobs/2019/02/the-innovation-economy-and-its-g rowth-in-this-state-is-critical-a-qa-with-new-deed-commissioner-steve... 7/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove I MinnPost etc.We also need to consider the role of continuing education for all ages.With the rapid change in technology and it acceleration company internal training is more difficult to staff and support so companies defer to speciality schools or tech schools or Universities and retain only the basic operational training within the company.Costs are often paid by the company or cost are shared.Training is going through a transition of how this service is provided and must be addressed.This is not the failure of the companies it is one of the topics both government and industry msut and can work together—and are doing so again confirming the MN tradition os business,private individual,and government partnhersips for successful enconmic and quality of life benefits. Bumps in the process will evolve with commitment and understanding by all to meet the challenge. Dave Broden LOG IN TO REPLY MOST COMMENTED STORIES Even the American Enterprise Institute thinks Trump is overstepping his authority with an emergency declaration for the wall(ioi) Poll shows most Americans trust Mueller over Trump(36) Klobuchar as neighbor:Is Upper-Midwestern-ness much of a factor in Iowa?(32) Amy Klobuchar may be Minnesota's most popular politician.But how popular is she in Minnesota's Trump country?(24) Beyond worrisome:Trump-Europe rift'now open and angry'(23) Thanks to our major sponsors Sponsor of GREAT D.C.MemoEli RIVER and ENERGY- MinnPost Social Sponsor of +7 tcoSecoond .70 Opinion Sponsor of eliminating racism empowering women New YVVea Americans Minr`eapoliS https://www.min npost.com/good-jobs/2019/02/the-innovation-economy-and-its-g rowth-in-this-state-is-critical-a-qa-with-new-deed-commissioner-Steve... 8/10 2/22/2019 'The innovation economy and its growth in this state is critical':a Q&A with new DEED Commissioner Steve Grove MinnPost Sponsor of MINNEAPOLIS Community FOUrNI)ATI_QN Sketchbook Sponsor of • • 0 1-1-0 Economy M a a s B R E M E I • • TPUS T MinnPost Staff CEO:Andrew Wallmeyer Editor:Andrew Putz Managing Editor:Susan Albright Creative Director:Corey Anderson Director of Advertising&Sponsorship:Sally Waterman News Editor:Tom Nehil Project Editor: Roger Buoen User Experience Engineer:Jonathan Stegall Director of Development:Tanner Curl Audience Engagement and Development Manager:Caroline Schwenz Advertising Operations Director:Brian Perry Director of Finance&Operations:Adrian Doerr Advertising Coordinator:Laura Lindsay Board Chair:Jill Field Chair Emeritus: Lee Lynch Co-founders:Joel&Laurie Kramer MinnPost is a nonprofit,nonpartisan enterprise whose mission is to provide high-quality journalism for people who care about Minnesota. 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MinnPost I 900 6th Avenue SE I Minneapolis, MN 55414 I 612.455.6950 Dakota County niEFie Community Development Agency CDA To: Dakota County Cities From: Maggie Dykes Date: February 25, 2019 Re: Foreclosure Update—CORRECTED DATA Dakota County Stats— December • # of Sheriff Sales in December— 15 (compared to 22 in December 2017) • #of Notices of Pendency Filed in December— 52 A Notice of Pendency is filed by a mortgage company's attorney as official notification that the foreclosure process has begun. Not all of these result in Sheriff Sales. Mapping Using Dakota County GIS http://gis.co.dakota.mn.us/website/dakotanetgis/ The Dakota County Office of GIS is updating the Foreclosures and Notice of Pendency layers on a monthly basis. If you need assistance using this Web page, please call Randy Knippel or Mary Hagerman with the Office of GIS at (952) 891-7081. If you have any concerns, please call me at (651) 675-4464 or send me an email at mdykes(a dakotacda.state.mn.us. 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O ra O o N 0 O O N o O 'N > O = N N N N N N N d u fll U > o > a Y vN = > o nen �, 0.1 i C v = Q Q Q < I Q Q CL f� V ( CO w tC CO rJa cc v) to 0 O O O 0 O O N0 Dakota County Jan-Dec 2018 0 N Open to Business 3137 Chicago Ave Minneapolis, MN 55407 BUSINESS612-789-7337 TOUpdates Clients Served: Industry Segment: Pre-Start Planning 42 Retail 18 Start-up 19 Service 62 Existing Business- Opportunity 36 Food 26 Existing Business- Challenged 23 Health/Fitness 6 Manufacturing 2 Total Clients: 120 Construction/Real Estate 3 Technology 0 Financing: Professional/Consulting 3 Approved: City*: Bus. Res. Number 11 Amount $ 565,000 Apple Valley 6 8 Leveraged $ 6,336,220 Burnsville 19 17 Eagan 15 16 Program Hours: Farmington 9 10 Hastings 12 12 1st QTR- 454.75 Inver Grove Heights 10 6 2nd QTR- 404.00 Lakeville 12 15 3rd QTR- 484.00 Mendota Heights 5 7 4th QTR- 465.00 Rosemount 9 8 S. St. Paul 4 3 Total Contract: 1807.75 W. St. Paul 6 4 Referral Source: * Many clients are both residents of the County, and operate or plan to operate in Municipality 74 the County as well. For the purposes of City Other Entrepreneur 3 identification only they may appear in both Bank Referral 6 columns above. Total Clients reported Family/Friend 11 reflects unique engagements-aggregating Other 16 multiple cities-or owners-to a single client Web 10 engagement.