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HomeMy WebLinkAbout03-28-19 0404 .111 t 0/ .4 moo AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING March 28, 2019 6:30 PM Room 170 Hannah Simmons, Chair; Steve Wilson, Vice-Chair Katie Bernhjelm, Ryan Butterfield, Jake Cordes, Robyn Craig Geraldine Jolley 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Approve Meeting Minutes (February 28, 2019, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) EDA Financial Review and Policy Discussion (b) Business Needs Assessment/BR&E Strategy 9. DIRECTOR'S REPORT (a) March Director's Report 10. ADJOURN -44114., �► City of Farmington ,, 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 der.,,, " ' www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller,Administrative Assistant SUBJECT: Approve Meeting Minutes (February 28, 2019, Regular Meeting) DATE: March 28, 2019 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the February 28, 2019, EDA meeting. ACTION REQUESTED Approve the February 28, 2019, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting February 28, 2019 1. CALL TO ORDER The meeting was called to order by Vice-Chair Jolley at 6:30 p.m. Members Present: Simmons, Wilson, Bernhj elm, Butterfield, Cordes, Craig, Jolley Members Absent: None Also Present: Adam Kienberger, Community Development Director 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Craig, second by Cordes to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Craig, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (January 24, 2019, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Annual Organizational Items This item includes approving the EDA by-laws, the meeting schedule, acknowledgement of the official newspaper, and election of officers. MOTION by Craig, second by Bernhj elm to nominate Hannah Simmons as chair. APIF, MOTION CARRIED. MOTION by Butterfield, second by Bernhj elm to nominate Steve Wilson as Vice-Chair. APIF, MOTION CARRIED. MOTION by Wilson, second by Bernhj elm to approve the EDA by-laws, the meeting schedule and acknowledging the Dakota County Tribune as the official newspaper. APIF, MOTION CARRIED. b) Open Meeting Law The EDA was provided with information on the open meeting law. c) 2019-2021 Strategic Plan for Economic Development Priorities and Work Plan The EDA Strategic Plan contains five outcomes: - 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 EDA Minutes(Regular) February 28,2019 Page 2 - 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 Staff asked the EDA to prioritize these items. Member Simmons thanked staff and the consultant for their time on this. It is a very actionable document. Member Bernhj elm felt the two that align the most with what the city council is working on this year are the communication piece and the economic and physical health of older sections of Farmington. The city council has already started the communication piece and there has been discussion about joint EDA and council meetings or EDA, council and planning commission. To get those booked the first six months of this year would be helpful. The Highway 3 Corridor Plan is already in progress and it would be nice to put some focus on that. It aligns with discussions the council has had about downtown Farmington and enhancing the space by the Rambling River Center. Those two pieces align the most with council and are reasonable action steps we can take within the next year. The rest is ongoing work and things that we can set strategic goals around. Member Wilson recommended starting at the top and walk through each one to see if there are any comments. He asked if staff will keep the status column updated and include it in every meeting packet. Staff stated this document is to have a more efficient tool to communicate the status of the items. The plan itself will always be included in the packet and this list of objectives will serve as a working document to provide updates. Member Craig agreed with that idea so it isn't out of sight, out of mind. It is good to keep it in front of us and will keep us on task. Member Butterfield stated the couple items that are further along such as the Highway 3 corridor, has gone through some public comments and the Rambling River Center Plaza is a step or two ahead of that. Those are the most concrete things going on to spur economic development. He felt those would be the focus of this group. Member Craig mentioned the one item we are dealing with for the plaza is funding. The council is trying to come up with creative solutions. It would be a real benefit to downtown on so many levels, but the funding is an issue. Member Butterfield asked if it was identified in any of these items where the EDA could identify funding mechanisms or do community outreach. Member Bernhj elm noted it is not included in this list yet, because there are still high level discussions taking place. One of the things council discussed was this group taking an active role in meeting with our larger business partners in the community about do they have growth plans in this area, what are their struggles, do they need the support of the EDA or the city council. A lot of those conversations could lead into partnering with them on some of these projects whether it's from sponsorships or community outreach. That could be an action item that falls into the communication bucket. We need to identify who some of those big businesses are and get some face time with them for some meaningful discussions. It has been some time since the city has done business outreach. It has fallen on the Farmington Business Association or the chamber. EDA Minutes(Regular) February 28,2019 Page 3 Member Jolley suggested taking one section at a time over the next few meetings and comment on it rather than the entire document overall. We should keep our eye on the goal which is to address these issues we deemed as important. Each time we take an action on an agenda item, we should think about where it fits in these objectives. Member Simmons clarified we still want the entire plan in the agenda at every meeting. Member Wilson had comments with a third of the items, so he was fine addressing them by item. Member Simmons started with the first item, expand and diversify the tax base. Member Wilson spoke regarding creating strong relationships and lines of communication with local businesses to identify opportunities for the EDA to enhance success and encourage expansion. A business assessment has a shelf life of about three years. Member Simmons noted we have not done a needs assessment in the past. We find out after they left that they were having problems. She would like to see examples of how other cities have surveyed their businesses. Member Butterfied stated coming in with a new strategic plan and identifying objects, starting early with getting feedback directly from the businesses seems like we would want that information to determine how we steer the rest of the plan. That should be done early. Staff stated the closest thing we have done was a community survey, but questions were not specific to this topic. Member Bernhjelm was not in favor of a survey and getting responses. It does not go indepth enough to get the answers we want. She would rather set up meetings and ask the same questions of each person we meet with. It builds the relationship versus just asking them to fill something out. You could dive into their answers more while sitting there with them. The city stopped doing surveys two years ago because it was costing a lot of money and the survey results don't tell a different story every two years. Member Butterfield stated however we do this, getting information from the businesses is critical. Member Bernhjelm noted this will not happen overnight. She would like to put a plan in place with a target list of who we would like to speak to, break it up amongst the EDA members to have those meetings, but work together to decide what those conversations should look like and what questions we want answered. Member Craig recalled members wanted to do something more action oriented where we feel we are making a difference. This would be a good way to do that. Member Simmons suggested this be an agenda item at the next meeting. She would like to know how other communities are doing this. We need quantitative data that comes from a survey because we want small businesses who are not going to take the time to meet,to feel as valued as our big businesses. We should spend the time people wise to go into the big businesses we can get dollars from. Member Bernhj elm asked in terms of the promotional materials, is that something staff could circulate to the EDA. Staff noted we have the website as a platform for our programs. We have moved away from doing any type of print piece. The item to review and update promotional items refers to the website and looking at other tactics to disburse information. The business retention and expansion EDA Minutes(Regular) February 28,2019 Page 4 (BR&E) is what we have referred to as the business visits. Staff can pull together materials that other communities are doing, and has ideas that could be unique to us through the website and promotional materials. Member Simmons moved on to the second objective, encourage development that brings additional goods and services to Farmington. Member Jolley noted we have a good deal of interest in Vermillion River Crossings. What we don't have is any activity going on there. She felt it would be good to communicate to the public that these things are in the works and they will happen. It would be good in some venue to periodically assure residents it is going to happen. Member Bernhj elm noted council has talked about having talking points so that whether it is commissions or council or staff and we are getting asked those questions, that we all say the same thing. We can control the message better. The city administrator was going to work on this. Member Craig agreed we do need to do a better job of communicating and controlling the message. Member Jolley was not saying it needed to be an EDA function, but it needs to be a message that we promote. Member Simmons was glad to see the message in the city news guide about Hy-Vee, Aldi and Taco Bell. Even if we do that every time, it will help. Member Jolley asked what is happening with the downtown redevelopment plan and the plaza space. Member Craig said council is trying to figure out financing. Staff stated there are no plans for any physical construction to take place this year. Member Simmons asked, and members agreed, to add the Rambling River Center Plaza to the action list. Member Bernhj elm noted there are two big projects the council has been tossing around; whether it is the plaza or the ice arena. There have been proposals to do major upgrades in either of those. There isn't funding for both of the projects or even one project. The council broke down the plaza, for example and said can we take phase one and fund it with three sources. Whether it is internal funding, through EDA contributions or city contributions, or do we actively seek sponsorship of certain areas and the third bucket was grant money. Nothing has taken off yet and is still in the planning process phase. Part of it is we would have to increase the tax levy to get something like that done. No one wants to do that when there are other projects that need to be funded. Member Jolley found it frustrating that we are involved in things and raise the hope of the community and invite them in to give their opinions and then it gets put on the shelf because we didn't figure out the funding when we first decided we were going to do this. This is one of many things that is great to talk about, but we don't have the money. Maybe this shouldn't be on our docket. Let's don't start things we can't finish. It is frustrating to the community. It's too much talk and not enough action. Before we talked about that plaza we should have had a six to seven year plan. Member Simmons agreed with her comments. She wants to see the plaza on the action list, because anything she voted to fund, she wants an update on. In this case, she has not heard anything about the ice arena outside of the council meetings, whereas we did have an open house for the plaza; a very public interaction. Member Craig stated the council has talked about having more joint meetings with the commissions to give some clarity on issues. EDA Minutes(Regular) February 28,2019 Page 5 Member Wilson stated having served on the council, there is a difference with strategic planning and public/private activities that go on in a government setting versus a company. He doesn't think that because we haven't started something, it's a lost cause. The downtown committee he was part of a few years ago, even though there isn't funding, there is value when investors are asking about plans for the area. He agreed that having it on the list as something we have taken a strong financial interest in is worth having it out there. Member Cordes noted the next two items talk about highway 3 and he agreed that should be one of our top priorities this year. Member Craig said once a plan is laid out, it will take 10 to 15 years because it will take re-zoning, code changes, etc. and that will take time. This plan is laying a foundation for the future of what we want highway 3 to look like. It will not change now. Member Jolley understood a work plan needs to be in place before the project can be done, but she would like to see some benchmarks being made; some progress from year to year. We need to be careful we don't plan]more than we can accomplish. We know our funding and how we are going to spend it. One example is the downtown facades. We had the money, it was doable and we see results. With some of these projects we have not looked far enough down the line. As far as the plaza, we can't afford it so why tease the public that we can do this. Member Simmons asked if anyone would like to see anything deleted from the rest of the actions. There were no deletions. She asked if anyone would like to see any additions. She would like to see updates on the Rambling River Center Plaza added and she would like to see a tactic and future discussions on expanding the facade grant program to include not only downtown, but highway 3 businesses and she would also like to see an action added around tactics to increase utilization of the CDBG program, These items most closely tie to promoting the economic and physical health of older sections of Farmington. The Rambling River Plaza could fall under encourage development. Staff noted regarding the façade program, right now the program guidelines are specific to the downtown as a strategic initiative from the downtown redevelopment plan. Member Simmons noted these are items to be discussed at future meetings. Member Simmons asked if there are any edits to the remaining objectives on the list. Member Wilson stated under communications, he does not see the value of having the Director's Report as a public newsletter. Staff noted this came out of the desire to communicate more of the work of this body to the public. The agenda packets are internally focused. Right now, in the quarterly city news guide we have a section on community development. So the question is whether the Director's Report has value as a monthly communication tool that can be viewed publicly. Member Bernhj elm felt the more places you can post something the better. So whether it is in the agenda, the website or the news guide, the goal is to hit the same message to as many people as possible. Member Simmons suggested using it to communicate what we are doing. We can have this as an agenda item to discuss it further. Member Simmons asked staff if the EDA Should select two items to discuss at the next meeting or take some time to digest the comments. Staff suggested EDA Minutes(Regular) February 28,2019 Page 6 concluding this topic and we can prepare the minutes and get a better understanding of the main points. We can set the March agenda from that. 9. DIRECTOR'S REPORT a) February Director's Report A ribbon cutting was held at River's Edge Dental in January. Highway 3 Corridor Plan - We had our consultant team at the Community Expo to solicit comments. Many people provided feedback. The consultant is working on putting this into buckets the public sees. We are working on when we will have the next joint meeting of the EDA, city council and planning commission. Member Butterfield stated when he was first thinking of joining the EDA was when the downtown redevelopment plan was at the Expo. The consultants were there to show a vision of what the plan is. It is disheartening that it was three years ago that it was receiving public comments and a big report of doing things and hearing the discussion today of what that is and now we are on to a new plan and the plaza is at the same point. So three years from now, what will be the new plan? He asked what is the next step of the Highway 3 Corridor Plan, when it meets the public, and at what point in the public eye is the position with the downtown redevelopment plan and all the other competing financing forces the city has to deal with. Staff explained the outcomes from these plans don't necessarily have dollar signs attached to them. So let's identify what those are and implement some of those we are continuing to deal with whether it is the downtown plan or the marketing plan. We are starting to see some things come out of the draft stages of the highway 3 plan that are more actionable whether it is the city code rezoning, land use, internal things that don't cost anything. The next step is identifying things that do have dollars associated with them. Riste lot update—This lot is owned by the EDA and is located behind the Exchange Bank building. We have been approached by a church that would like to purchase that building and the Riste lot. A requirement is to have an appraisal done, to determine the fair market value. We have a letter of intent from the church for an offer of$20,000, which triggered us to have it re-appraised. The fair market value is now$34,000. Staff has been communicating with the church because with their offer, the EDA would lose money. A revised letter of intent has been received from them for $25,000. The city attorney is recommending that staff continue to negotiate an offer the EDA would accept and work through a contract for private development versus accepting a letter of intent. Staff suggested not accepting the $25,000 offer. With the fair market value of$34,000 and the EDA's repayment obligations to the block grant program of 76.9%, the breakeven point is $26,146. There would also be closing costs, etc. Staff asked if the EDA is comfortable with breaking even with all our costs in, or making money, or subsidizing an end user, but the EDA would have to tap our general fund dollars to pay back into the block grant program. Member Butterfield asked what their end use is and would they be applying for other city grants to do that so the city would be hit twice. Staff replied potentially yes. Because we don't have anything formal from them, other than an offer, we have to consider any other mechanisms that tie any sale of that property to them from the EDA to their acquisition of the Exchange Bank building requiring them to combine the lots. EDA Minutes(Regular) February 28,2019 Page 7 Their proposal was to use it as an outdoor gathering space rather than building on the lot. Staff asked if the EDA is comfortable going back to them asking for more. Members agreed at the very least we need to break even or even more if they are using another grant and they are not using the lot to drive the tax base up. We would take a loss on all three levels. If they were to apply to the EDA to make improvements to the Exchange Bank building after they close on the lot, that is good to preserve a historical building, but does that tie into or influence a decision by the EDA to sell a piece of real estate that is attached to that. Member Jolley stated the building transaction needs to be resolved, then we move on to the Riste lot. If they want to apply for grant money, we cannot get the cart before the horse. We could potentially end up selling that lot, the sale of the building will fall through and the lot will sit there like it is. Member Bernhj elm agreed we want that building to be sold and get some traffic downtown as long as we break even and have a contingency they are getting the building with the lot. Members agreed. Staff provided miscellaneous articles. A CDA foreclosure report was provided and the quarterly Open to Business report was provided. The finance director will attend the March EDA meeting to provide a financial update. Member Bernhjelm asked that the finance director talk about what the council has been reviewing with having a five-year plan. It would be valuable for the EDA to see how areas are underfunded over the next five years to get a bigger story. 9. ADJOURN MOTION by Cordes, second by Wilson to adjourn at 7:54 p.m. APIF, MOTION CARRIED. Respectfully submitted, vLtli%a M4Ler Cynthia Muller Administrative Assistant 4104/46, City of Farmington p 430 Third Street Farmington, Minnesota 14,E 651.280.6800 - Fax 651.280.6899 -.A 1 WWW.c i.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: March 28, 2019 INTRODUCTION/DISCUSSION Please find attached the monthly financial statements of the EDA. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit EDA-Actual Vs Budgeted Rev and Exp - March 2019 D Exhibit Financial Snapshot- March w'T O O O Q O �-. 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(n1---:,t,:,1„:, fl OV -W °o Ct - " ii i i ii Ii Q 0 0 0 = 1 W J > F-- Q 0 - ,- cc .- U s4II'i1III Y 11;1,1C11 3 C) W Q W U w (n (A Z < W C9 -1, ���i�) II C 03 {gyp 0): N >' d CK W (Q J (4 D D-II J Q' Riu�X l�) NiiIC Ui 2 d �- J I- W"Z O (n H 2 Q d d W d LL C y O: : i ' i - N'..y v Z d tl -0 M_' N CO O O-0 U) N O _ = d ..c..° > 0 v d tfi v v v v v v v d1,,,,,,.-0,-,4, t �� �ii�...l c0 c0 (0,7 (.0;;11. o o c0 o oo o to F- F-�"O""' i 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 235,046.49 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 35,000.00 12000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -271,985.70 2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS 0.00 -2,300.00 2000-HRA/ECONOMIC DEVELOPMENT 5205 OPERATING TRANSFERS -8,333.32 -50,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 0.00 11,680.00 2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 719.40 4,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 1,386.16 8,317.00 2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 40.19 300.00 2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 23.78 130.00 2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 500.00 j 2000-HRA/ECONOMIC DEVELOPMENT 6460 SUBSCRIPTIONS&DUES 1,220.00 2,500.00 2000-HRA/ECONOMIC DEVELOPMENT 6470 TRAINING&SUBSISTANCE 340.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 0.00 1,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6492 ADVERTISING 0.00 3,000.00 12000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 6,068.00 17,000.00 I 2000-HRA/ECONOMIC DEVELOPMENT 7310 OPERATING TRANSFERS 475.00 2,850.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 1,977.00 0.00 1,977.00 0.00 1,977.00 3/19/2019 8:55:39 AM Page 1 of 1 /4444 4/ City of Farmington f ' 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 A i www c i.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director; Teah Malecha, Finance Director SUBJECT: EDA Financial Review and Policy Discussion DATE: March 28, 2019 INTRODUCTION/DISCUSSION City Finance Director, Teah Malecha will provide the EDA with a financial review of its revenues and expenses. This will be used to facilitate a discussion about policy direction and program funding for the EDA. The presentation will walk us through a number of programs funded by the EDA(facade improvement program, site readiness, Open to Business, CDBG etc.), and compare them to the EDA's current funding levels. ACTION REQUESTED Participate in the discussion on EDA financing and utilize the information to continue the process of prioritizing our Strategic Plan objectives. EDA FINANCIAL REVIEW March 28, 2019 1 City Council Priorities :• Continue Sound Financial Practices Development for a Successful Future :• Build on Established Partnerships Delivery of High Quality Services Completion of Special Projects f y�g�, a� The city council priorities were adopted at the March 18th meeting. 2 Financial Needs Property Taxes&LGA General EDA Park Street Trail Building Emery• Fund Improvement Maintenance Maintenance Maintenance Borer Sealcoating 8,11114, PIM C ems. .01""116"-- 40"j The city's property tax levy and Local Government Aid that is received is distributed across numerous areas as you can see. It includes the General Fund, Park Improvements, capital equipment, street maintenance,trail maintenance, building maintenance, emerald ash borer, and the EDA. If additional funding is needed for an area, the tax levy would need to be increased. 3 Funding Needs :• Building Maintenance Trail Maintenance Pavement Management :• Vehicles • .wr. +' � •: v. L f f uau t t,. • ? 4 — The city has many different areas that need additional funding including building maintenance,trail maintenance, pavement management, and vehicles. The maintenance projects help to extend the lifespan of our facilities and pavement. The city has 85 miles of streets and 45 miles of trails. The ideal funding for pavement management is $810,000 per year to be able to maintain our roads. The current allocation for 2019 is $400,000. Trail maintenance funding would ideally be at $510,000 with the 2019 allocation at$61,363. There are numerous shortfalls that the council is working to manage and prioritize. 4 2018 Year-End Review Cash and Investments $ 332,336 Less: Operations 22,451 Dakota Broadband 3,045 Open to Business 5,513 Facade Improvement 25,978 Year-End $ 275,349 The operations portion includes your operations costs and also strategic planning, hotel feasibility study and the comp plan update. Additional costs have been incurred due to participation in the Dakota Broadband initiative.The costs will change each year. The open to business expense is annual. There were four facade grants given in 2018. There has been a transfer from General Fund to the EDA each year since 2012. Due to budget constraints,there was not a transfer allocated from the General Fund for 2018. The city had a positive year and is transferring$30,000 to the EDA for 2018. The transfer has not been included in this information. 5 2019 Looking Forward Beginning 2019 Cash and Investments $ 275,349 General Fund Transfer 50,000 Less: Operations 20,000 Dakota Broadband 24,000 Open to Business 5,513 Site Readiness 20,000 Facade Improvement 20,000 CDBG Cashflow Timings 50,000 Cash Available for Programming $ 185,836 *Depending on HUD's Final Budget Approval The transfer for 2019 is $50,000. 2020 is estimated to be $40,000 at this time. Additional costs have been incurred due to participation in the Dakota Broadband initiative that will change each year. $500 annual dues— 2019 $3,500 Access Fee, $20,000 estimated operating expenses The EDA has committed $20,000 per year to the site readiness and façade improvement programs.The amount may or may not be spent during the year depending on applications. The CDBG includes funding for the Commercial Rehab Grant Program and Highway 3 Corridor Study. 6 Committed Funds RRC Plaza $100,000 Assessment Relief 35.000 s x r. : j- ‘• : TI-)4410 7ii I to/. - :7 -P.F441/ 'fel: I ,......77-71' 44 . .. . - .k -i j= ' r ,,- 0 ,'A 1 44 Iiii -41-:=3.° , 'fl r✓ if The EDA currently has funds committed to other projects. That money is included in the cash balance. There is $100,000 for the RRC Plaza project. $35,000 is committed for assessment relief. $15,000 of that was used for the Aldi lot. Out of the remaining$185,000 estimate for the year-end 2019, $50,000 is not committed for other purposes. 7 Conclusion • Five-year plan • Priorities • New programs • Revenue CITYF FARMINGTON • The information should be used in conjunction with the strategic plan to determine the best path for a five-year plan. What do you see as the EDA priorities? Are there new programs that you would like to see implemented? The city is currently providing a revenue stream for the EDA through transfers from the General Fund.Are there other options that should be pursued? When considering future programs, it is important to consider the available funding, commitments, and also the incoming cash flow. 8 4114R# City of Farmington f p� 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: Business Needs Assessment/BR&E Strategy DATE: March 28, 2019 INTRODUCTION/DISCUSSION The 2019-2021 Strategic Plan for Economic Development identifies the first objective as "Expand and Diversify the Tax Base"(pages 6-10). This is one of the key fundamentals of economic development and plays a role in nearly every aspect of the Strategic Plan. We will review this section during the meeting to better understand the role of a diverse tax base in our local economy. Several tactics and actions are identified as ways to address this objective—the first calls for the creation of a"comprehensive business needs/assessment survey". As discussed at our February meeting, this can be accomplished a variety of ways and ultimately leads to an active business retention and expansion(BR&E) program. BR&E strategies are typically focused on two main components — data and relationships. The EDA's marketing plan(2013) speaks mostly to strategic relationships (professional memberships, networking groups, broker connections etc.) to organically compile information on local business needs. This knowledge typically resides with the economic development staff and is not easily transferable. Data can be obtained through several methods including regional surveys (macro trends), localized general business surveys, targeted business surveys, and face-to-face interviews. Each of these methods can have value in understanding the needs of the local business culture. As discussed at our February meeting, a written or phone survey often provides low response rates and limited results with a high cost. At the other end of the spectrum, face-to-face interviews aren't always welcomed by businesses who are often wary of divulging certain types of information to a representative of the city. For discussion, I would like to propose a multi-tiered approach to a business needs assessment that can evolve into a sustainable BR&E program. Components may include: • Regularly provide the EDA with regionally identified business needs information(sources include DEED, MN Chamber of Commerce, GreaterMSP, Dakota/Scott Workforce Development Board). Additional communication and interaction with both the Dakota County Regional Chamber of Commerce and the Farmington Business Association. Outreach to Farmington businesses requesting face-to-face BR&E visits. o Attached is a best practices request for visit and survey form from GreaterMSP. • Regularly featuring businesses in city communications "business highlights". • Ribbon cuttings/anniversary celebrations/groundbreaking ceremonies. • Specific talking points for EDA members who regularly interact with local businesses. Farmington businesses' needs aren't necessarily specific to Farmington, and regional data can often identify needs for localized programs. At the same time hyperlocal programs (ribbon cuttings) are a very informal way to have conversations with local business owners while celebrating their achievements. Several of these actions already take place within the Community Development Department, but without a well-defined structure for gathering and reporting data leading to policy review and discussion. ACTION REQUESTED Discuss the desired components of a business needs assessment strategy and provide staff with direction on implementation. ATTACHMENTS: Type Description o Exhibit Request for Visit Letter o Exhibit GreaterMSP Common Questions Survey (Date) Company Name Attn: Address City, State Zip code Dear (name): The City of(name of city) has selected (company name) as a company we would like to learn more about as part of our Business Retention & Expansion efforts. I would enjoy the opportunity to meet with you and your team to discuss a variety of topics ranging from general business climate, employment, future investment plans, community initiatives and other topics that are of importance to you and your company. I will be contacting you in the next week to schedule a half hour visit.Your feedback is valuable in helping the City and Region better serve the business community. We hope you will assist our efforts by participating in a short interactive discussion. Hearing from businesses in the community is key to successful business retention efforts. If you have any questions or would like to connect sooner, please contact me at(phone#) or (email). Thank you for all you do to ensure business and people prosper in the Greater MSP Region. Sincerely, Name Title Common Questions Survey Reporting Form (rev 1.12.16) COMPANY INFORMATION Company Name: Contact Name/Email: Visit Date: Would you be willing to participate in the MN Manufacturers week? YES NO BUSINESS AND FACILITY DETAILS: Primary Business Sector? Type of facility(select all that apply): ❑ Branch ❑ Distribution ❑ Franchise ❑ Headquarters ❑ Home-based ❑ Manufacturing ❑ R&D ❑ Sales-Office Is this facility owned or leased? Owned Leased Does company have a succession plan? YES NO Has the company ownership changed? YES NO Or is change imminent? YES NO Explain: Over the past year, have company sales(select one): ❑ Increased ❑ Decreased ❑ Been relatively stable ❑ Fluctuated widely ❑ Not identified What has contributed to the increase or decrease in sales? PRODUCTS AND SERVICES What are the company's major products and services? Has this company introduced new products? YES NO Briefly describe new products: EMPLOYMENT AND WORKFORCE How many full time employees are at this facility? Has the number of employees at this facility changed in the past year(select one): ❑ Increased ❑ Decreased ❑ Stayed the same If increased, how many employees have been hired in the past year? __ _ 1lPage_ In the next year,do you expect the number of jobs at facility to(select one): ❑ Increase ❑ Decrease ❑ Be relatively stable ❑ Unsure Do you plan to hire in the next 2-5 years? YES NO If yes, how many employees do you anticipate hiring? What types of jobs are you hiring? If you have hired in the past year,was it hard to fill positions? YES NO What contributed to the challenges in filling open positions?(select all that apply): ❑ Poor work ethic❑ Lack of basic education ❑ Lack of technical skills❑ Lack of candidates ❑ Challenging location ❑ Competition ❑ Other Do you anticipate needing to train existing employees: YES NO What type of training is needed? Does the community have enough housing and the right type of housing for your future employees?YES NO MARKET INFORMATION Company's primary market(select one): ❑ International ❑ United States ❑ Midwest(including MN) ❑ Minnesota ❑ Local Company's fastest growing geographic market(select one): ❑ International ❑ United States ❑ Midwest(including MN) ❑ Minnesota ❑ Local ❑ Not identified Do you export or have clients outside of the United States? YES NO If so,where(select all that apply): ❑ Africa& Middle East ❑ Canada ❑ Europe&Russia ❑ Greater China ❑ India, Pakistan, Central/South Asia ❑ Japan&Korea ❑ Southeast Asia ❑ Australia&Pacific Oceania ❑ Latin America&Caribbean ❑ Mexico ❑ Other Percent of sales outside of the US? Are you interested in exporting or learning how to obtain clients outside of the U.S.(exporting)? ❑ Yes ❑ No __2 I Page... INVESTMENT PLAN Does the company plan to(check all that apply) ❑ Invest in new facilities ❑ Make major equipment purchase ❑ Renovate/Expand current facilities ❑ None Approximate date of investment(select one): ❑ Within one year ❑ Within two years ❑ Within three years ❑ Unsure Do you currently have room on your site to expand? YES NO If investing in new location,why(select all that apply)? ❑ Access to labor❑ Access to markets❑ Environmental permit obstacles❑ High state taxes❑ High local taxes ❑ Labor costs ❑ Lease expiration ❑ No room at this location ❑Quality of workforce ❑Transportation/infrastructure ❑ Other COMMUNITY What are the strengths and weaknesses of the community? Have you interacted with any of the departments at City Hall?If so,what department and please describe your experience. Are there any priority projects or initiatives the City should consider in order to enhance the business climate? POST DISCUSSION VISIT Does this company require follow up? YES NO If yes,what organization(s)should assist(select all that apply): ❑ City ❑ Chamber ❑ College ❑ State ❑ Workforce ❑ GREATER MSP ❑ Other NOTES: Wage Page_ Rank the local business climate:Community Rankings:1=Poor 5=Great Education and Training K-12 1 2 3 4 5 n/a Higher education 1 2 3 4 5 n/a Customized Training Programs 1 2 3 4 5 n/a Overall Workforce Quality 1 2 3 4 5 n/a Transportation/Location Public Transportation 1 2 3 4 5 n/a Highway Infrastructure 1 2 3 4 5 n/a Air Service 1 2 3 4 5 n/a Proximity to Suppliers 1 2 3 4 5 n/a Quality of Life Recreational Opportunities 1 2 3 4 5 n/a Cultural Opportunities 1 2 3 4 5 n/a Crime Rate 1 2 3 4 5 n/a Social Organizations and Networks 1 2 3 4 5 n/a Housing Supply for Workforce 1 2 3 4 5 n/a Local Access to Capital Lending by local financial institutions 1 2 3 4 5 n/a Assistance from local governments and/or non-profits 1 2 3 4 5 n/a Local Government Attitude towards business 1 2 3 4 5 n/a Permitting/Zoning 1 2 3 4 5 n/a Local Taxes 1 2 3 4 5 n/a Local fees 1 2 3 4 5 n/a Utilities Telecommunications/Broadband Service 1 2 3 4 5 n/a Telecommunications/Broadband Rates 1 2 3 4 5 n/a Electric Rates 1 2 3 4 5 n/a Electric Reliability 1 2 3 4 5 n/a 41 Page... City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 R`'T.�, wwwci.farmington.mn.us TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: March Director's Report DATE: March 28, 2019 INTRODUCTION/DISCUSSION 2019-2021 Strategic Plan for Economic Development As noted at our meeting in February, there will be an update each month on the status of items in the 2019- 2021 Strategic Plan for Economic Development. The plan and summary sheet are attached. Highway 3 Corridor Plan A joint meeting of the City Council, EDA, and Planning Commission is scheduled for April 8th. The City Council will be discussing a few agenda items starting at 6:00 p.m. and the EDA and Planning Commission are asked to join the meeting at 7:00 p.m. to review draft components of the Highway 3 Corridor Plan. 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 February. Miscellaneous Articles CDA Status Report— Q4 2018 DEED Employment Report—March Facetime with incoming GreaterMSP CEO Peter Frosch—MSP Business Journal Who Wants to Work in Manufacturing— Twin Cities Business Two Way Street—Has Your City Used a Community Development Block Grant?— Minnesota Cities Mar/April LMC https://www.lmc.org/media/document/1/mncitiesmarapr2019.pdf?ssl=true&inline=true NEXT MEETING Our next regular meeting is April 25th 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 CI Exhibit CDA Status Report- Q4 2018 a Exhibit DEED Employment Report- March o Exhibit Facetime with incoming GreaterMSP CEO Peter Frosch— MSP Business Journal Et Exhibit Who Wants to Work in Manufacturing—Twin Cities Business Two Way Street— Has Your City Used a o Exhibit Community Development Block Grant?— Minnesota Cities Mar/April LMC o Exhibit 2019-2021 Strategic Plan for Economic Development o Exhibit Strategic Plan Summary and Status Report riveDakota County 1228 Town Centre Drive I Eagan,MN 55123 Community Development PHONE 651-675-4400 ( Too/m 711 Agency www.dakotacda.org CDA MEMO February 22, 2019 TO: CDA Board of Commissioners Dakota County Manager and Physical Development Director City Administrators& Managers FROM: Tony Schertler, Executive Director RE: Status Report-Quarter 4, 2018 This Status Report provides summary information on the use of affordable housing and community development programs in Dakota County.The Status Report reflects statistics through the fourth quarter of 2018 and not the entire life of programs.As a reference tool,the appendix has an explanation of each program. Dakota County • Quarter 4,2019 Er, rt. ei Agency County Statistics through December 31,2018 Dakota o Development5tat Agency Q/Njf, CDA `�f//�`� as of September 30 as of December 31 '/_ Elderly/ Youth/ Elderly/ Youth/ Previous CDA Property Portfolio Development-Based Housing Programs Disabled Family Disabled Family Quarter O CDA Housing Programs 1,669 831 1,669 831 0 C'f. Project Based Housing Choice Vouchers 183 257 183 257 0 1�i Other Affordable Housing Programs 1100 1,730 1100 1,730 0 Workforce y� Total Development-Based Housing Units 2,952 2,818 2,952 2,818 0 Housing 28% Tenant-Based Housing Programs All All Quarter Public / Housing r' Senior Tenant Based Housing Choice Vouchers 2,315 2,270 45 11% Housing Portable Incoming Vouchers 128 151 23 ' 60% t4.4 Outgoing Vouchers 287 312 25 Youth Supportive Other Rental Housing Subsidy Programs 133 133 0 Housing Total Tenant-Based Housing Vouchers 0 2,863 0 2,866 3 1% Tenant-based program vouchers may be used by residents of development-based housing. CDA Properties Include: •f Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD •29 Senior Housing Developments .. ._.. Rehab&Improvement Loans Closed 19 14 24 12 69 •24 Workforce Housing Developments • 1 Youth Supportive Housing tWeatherization Projects Completed 25 27 14 23 89 Development 14 ••323 units Scattered Site Public Housing • 12 '1180,138 $182,642 $85,757 $159,678 $136,1?R56,843 0� 10 I ..,. jpo 5,289 8 •• - ���$95,115 p r 111' ■ IM - e kg:Weotng Rehab&Improvement Rental Assisted Housing includes: 4 . • • J . "■« ■Weathenzatlon Development-Based Housing Programs 2 0 —Housing Rehab Funds Spent •CDA Senior Housing Job ,o6 nor .-PQc. �0 ,JCO ov\ '�J.,, ,�e ,o�e �e ,�e` •CDA Workforce Housing oc e� eO oc6 o, ec6 eF •CDA Youth Supportive Housing j 0 ?o neo •Section 8 Housing Choice Vouchers First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD •202 Housing .,, •811 Housing First Mortgage Loans&Downpayment 6 15 14 0 35 •236 Housing Mortgage Credit Certificates 6 13 13 0 32 •Low Rent Housing Pre-Purchase Counseling 30 39 28 10 107 •Non-CDA Bond Financed Housing •Non-CDA Tax Credit Housing Home Stretch Homebuyer Education 52 71 38 32 193 •FMHA 45 40 Tenant-Based Housing Programs 35 •Section 8 Housing Choice Vouchers 30 •Continuum of Care 25 -First Mortgage Loans 20 •Bridges 15 —Mortgage Credit Certificate • Family Unification Program 10 - •Veteran Affairs Supportive Housing 5 Pre-Purchase Appointments • Housing Trust Fund 0 —Home Stretch Course •Single Room Occupancy a6 Oct r „k, OA cs JA J'Seee J ,00 4, P )J JA \e„0 ,`o- , , ,OkQPQQGO,e Seoe „ ' Program statistics are available upon request. Graph represents monthly data. of 1 Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 51 58 60 49 218 273 -- Notice of Pendency 358 370 317 375 1,420 1,447 P 250 -- 200 - 150 2018 Sheriff Sales ma —2018 Notice of Pendency 50 -- —2017 Sheriff Sales 0 P Apple Valley • Quarter 4,2018 EP---e r6 di Dakota county 5difreviii4a, y Statistics through December 3l,2018 CommunityDevelopment ,(•/'{jAgencyO/� CDA �v I as of September 30 as of December 31 '/_ CDA Properties in Apple Valley . Elderly/ Youth/ Elderly/ Youth/ Previous Disabled Family Disabled Family Quarter Senior Housing Developments Development-Based Housing ProgramsOrchard Square•so units .tc CDA Housing Programs 170 111 170 111 0 Cortland Square•60 units Project Based Housing Choice Vouchers 72 56 72 56 o Cobblestone Square•60 units Other Affordable Housing Programs 215 117 215 117 0 Workforce Housing Developments Total Development-Based Housing Units 457 284 457 284 0 Glenbrook Townhomes•39 units Chasewood Townhomes•27 units Quarry View Townhomes•45 units Tenant-Based Housing Programs All All Quarter Scattered Site Public Housing Tenant Based Housing Choice Vouchers 256 264 8 51 units n , Portable Incoming Vouchers 16 18 2 1.414" Portable Rental Housing Subsidy Programs 11 11 0 Other Affordable Housing Total Tenant-Based Housing Vouchers 283 293 10 in Apple Valley Tenant-based program vouchers may be used by residents of development-based housing. Project Based Vouchers Apple Valley Villa•72 senior units Whitney Grove Townhomes•56 family units Section 811 Housing a Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Apple Grove Apartments•16 units Rehab&Improvement Loans Closed 1 3 1 0 5 Non-CDA Managed Tax Credit Weatherization Projects Completed 3 1 0 4 8 Haralson Apartments•36 units Non-CDA Bond Financed Housing e I Hidden Ponds•19 affordable s •Ma<„ family units of 84 total units Weatherization a •April Hearthstone Apartments& mw Townhomes•46 affordable •,"H< family units of 228 total units } Legends of Apple Valley• 163 affordable d Housing Rehab&Improvement senior units O .oma Non-CDA Other 0 1 2 3 4 5 5 7 8 9 Scott-Carver-Dakota CAP Agency • First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 1 affordable unit kFirst Mortgage Loans&Downpayment 0 1 4 0 5 Mortgage Credit Certificate Requested 0 1 4 0 5 2.5 2 Affordable Housing 1.5 =111,1111, in Apple Vally 1 First Mortgage Loans 0.5alli������a • Mortgage Credit Certificate , 0 0% Jab JOS 6° QQs\ ,0A ,,5cO �A ��`� .pev aces ‘0,& .o0 23% aC `0� 4,s6 � QJ ,10� o° -10 00 0� 31% 1s% iHome Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total 7 17% Sheriff Sales 2 10 8 3 23 34 Notice of Pendancy 50 54 44 48 196 184 Kcs P 30 --- O CDA Senior Housing Units l,- 25 ■CDA Workforce Housing Units 20 NCDA Public Housing Units 15 —2018 Sheriff Sales O Project Based Voucher Units 10 —2018 Notice of Pendency Li Section 811 Units 5 —.2017 Sheriff Sales rr Tax Credit Units 0 , � 6 6 6, QOC0 „\ J4 `06 `0o 'Coae ■Bond Financed Units ,,O00 „.0P 4- ,,,P 0,,- o0C <,0 ■Other <0 0ep m Burnsville • Quarter 4,2018 lc 7- Dakota county LStatistics through December 31,2018 C .21-gencyommunity Devolppment9reett44, f�,/ � CDA � `� as of September 30 as of December 31 t/_ Elderly/ Youth/ Elderly/ Youth/ Previous .rDevelopment-Based Housing Programs Disabled Family Disabled Family Quarter CC. Project Housing Programs 206 56 206 56 0 Project Based Housing Choice Vouchers 0 89 0 89 0 Other Affordable Housing Programs 83 496 83 496 0 Total Development-Based Housing Units 289 641 289 641 0 `7- Tenant-Based Housing Programs All All Quarter Att Tenant Based Housing Choice Vouchers 591 561 -30 A Portable Incoming Vouchers 31 38 7 lK Other Rental Housing Subsidy Programs 17 17 0 Total Tenant-Based Housing Vouchers 639 616 -23 Tenant-based program vouchers may be used by residents of development-based housing. CDA Properties in Burnsville Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments: Rehab&Improvement Loans Closed 3 1 2 1 7 Eagle Ridge Place•60 units i Weatherization Projects Completed 4 7 2 5 •a ry 18 Park Ridge Place•66 units Valley Ridge•80 units SZ!) l a "•°'°°" Workforce Housing Developments: Weatherization .a Q, Parkside Townhomes•22 units I .Ma Heart of the City Townhomes• 34 units Housing Rehab&Improvement ' "' .•P,• � Scattered Site Public Housing 61 units 0 2 4 6 8 10 12 14 16 18 20 ��• of First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Other Affordable Housing C*. in Burnsville First Mortgage Loans&Downpayment 1 1 1 2 5 Project Based Vouchers Mortgage Credit Certificate Requested 1 1 0 2 4 Chowen Bend Townhomes•32 units 1.2 Cliff Hill•32 units 1 Horizon Heights •25 units 0 8 - Section 811 Housing 0.6 ���IWest s Apartmentsan •24 units Leah's Apartments•17 units 0.2 ��- —FirstMoggC Mortgage Loans 0 2 —Mortgage Credit Certificate Section 236 Housing _�- Chancellor Manor•200 units 0 Section 202 Housing Ci 6 r k' .\ 0 5� 0C el' eets ec acJa ,$2 �6° PQ �a )Jc )J pJ6'se�� c>60 0�� e' Ebenezer Ridge Point•42 units F0 SCQ Q �0d Oeo Non-CDA Managed Tax Credit Timber Ridge•48 units Andrew's Pointe•57 units Non-CDA Bond Financed Housing Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Grande Market Place•46 affordable units �,m..... of 113 total units Sheriff Sales 7 8 7 10 32 44 Dakota Station•60 affordable units Notice of Pendancy 36 58 55 61 210 193 of iso total units P 40 Wyngate Townhomes• 10 affordable units �l� of 505 total units 30 30 Non-CDA Other 25 – . — County Road 5-Tasks Unlimited• 20 —2018 Sheriff Sales 6 affordable units 15 ___ Scott-Carver-Dakota CAP Agency • 10 2018 Notice of Pendency 8 affordable units 5 -2017 Sheriff Sales 0 Program statistics are available upon request. DCA ,CA er QC` aA 06 J\J „4, 0C 0C 0C 0C O, ,o, SCJ �O P C1` )J ) ‘p0CC'a o o'a Cc'C 0e F0 P SeC Q �o-A° O0c Eagan • Quarter 4,2018 ���� Dakota County51frat 4Statistics through December 31,2018 1 IICommunity Development 1,11" _(/r(J- Agency /219 CDA as of September 30 as of December 31 ../_ Elderly/ Youth/ Elderly/ Youth) Previous Development-Based Housing Programs Disabled Family Disabled Family Quarter 744 CDA Housing Programs 245 224 245 224 0 Project Based Housing Choice Vouchers 0 0 0 0 0 Other Affordable Housing Programs 32 132 32 132 0 Total Development-Based Housing Units 277 356 277 356 0 Tenant-Based Housing Programs All All Quarter ATenant Based Housing Choice Vouchers 360 350 -10 n Portable Incoming Vouchers 18 22 4 t.0 Other Rental Housing Subsidy Programs 18 18 0 Total Tenant-Based Housing Vouchers 396 390 -6 Tenant-based program vouchers may be used by residents of development-based housing. tt CDA Properties in Eagan p Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 1 0 2 1 4 O'Leary Manor.65 units Weatherization Projects Completed 2 3 1 s 11 Oakwoods of Eagan•65 units Lakeside Pointe•60 units p „a•a Oakwoods East•55 units . •FebruarY Weatherization T r Workforce Housing Developments •a, .Mov Oak Ridge Townhomes•42 units I •Jul Erin Place Townhomes•34 units Northwood Townhomes•42 units t Housing Rehab&Improvement ,t <atitRiverview Ridge Townhomes•27 units t...,_ l ,,,o,•,,,,• Lakeshore Townhomes•50 units 0 2 4 6 8 10 12 •owe Youth Supportive Housing eJ i. First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Lincoln Place•24 units s. First Mortgage Loans&Downpayment 1 1 0 1 3 Scattered Site Public Housing Mortgage Credit Certificate Requested 1 1 0 1 3 28 units 1.2 — 1 .__.__._._ .__ ___.._.__ Other Affordable Housing 0.8Aliin Eagan A ANon-CDA Bond Financed Housing 0.6 Cedar Villas•21 affordable 0.4 AIILINIIIIIIA First Mortgage Loans family units of 104 total units 0.2 IIIIMLIMIINMIIIIIIIIIMIK -Mortgage Credit Certificate Commons on Marice•32 affordable IUIIIIIIIIMIIIIIIIIIIIF senior units of 156 total units 0 View Pointe Apartments •60 affordable 6 6 'c' J o ,� 5>, 6 6 o' o units of 327 total units OC' $ opo PQ `So 5J� �J J e �6° e ccs Yo <<0e P ' O°44Oe 5 °a Se Non-CDA Other Scott-Carver-Dakota CAP Agency • 8 affordable units Dakota Woodlands(Mary's Shelter) • 21 beds 1 Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 12 4 7 4 27 42 Program statistics are available upon request. Notice of Pendancy 47 44 42 51 184 230 C Kp 35 0 25 —_11.1 11IIIIIIIII1-. 20 III-, II _I I1� 15 -"1111111rvaillIM —2018 Sheriff Sales 10 —2018 Notice of Pendency 5 —2017 Sheriff Sales 0 6 o6 o' Q. 0-4, 0 ,--\ ,p 6 6 a` a` .)°��so, �O P Cr �J PJO, ��(O QG,�a�P ,��C�O GC�C�O S,0 ,÷0QPe Farmington • Quarter 4,2018 riF.7.-I- N Comma County 5.114;prt L Statistics through December 31,2018 Community Development ��(//(J-id Agency1" CDA v as of September 30 as of December 31 '/_ Elderly/ Youth/ Elderly/ Youth/ Previous Development-Based Housing Programs Disabled Famly Disabled Family Quarter CV. CDA Housing Programs 66 51 66 51 0 Project Based Housing Choice Vouchers 60 0 60 0 0 Other Affordable Housing Programs 37 115 37 115 0 Total Development-Based Housing Units 163 166 163 166 0 / ,4k„, Tenant-Based Housing Programs All All Quarter Tenant Based Housing Choice Vouchers 46 15 -31 n , Portable Incoming Vouchers 5 5 0 NC Other Rental Housing Subsidy Programs 4 6 2 Total Tenant-Based Housing Vouchers 55 26 -29 Tenant-based program vouchers may be used by residents of devebpment-based housing. CDA Properties in Farmington p Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 1 2 1 1 5 Vermillion River Crossing•66 units Weatherization Projects Completed 1 1 1 4 7 Workforce Housing Developments p I Twin Ponds Townhomes•51 units Weatherization Scattered Site Public Housing •..V7 units •nrye Housing • Rehab&Improvement • tY ,e Other Affordable Housing _ I in Farmington 0 1 2 3 4 5 6 7 8 •�•m� Project Based Vouchers of Spruce Place•60 senior units p First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD FMHA First Mortgage Loans&Downpayment 1 3 0 2 6 Red Oak Manor•37 senior units Mortgage Credit Certificate Requested 1 2 0 2 5 Westview Apartments •60 units 2.5 — Non-CDA Managed Tax Credit Farmington Family Townhomes• 2 — 28 affordable family units of 32 total units 1.5 -■I Farmington Townhomes•16 units 1 _11 First Mortgage Loans Non-CDA Other 0.5 . Mortgage Credit Certificate Elim Terrace•4 affordable units of 18 total units 0 Dakota Woodlands(Mary's Shelter( • ) 6 6 cO\ CJ J�� SSee; o 2 21 beds JaOO V-QJFX00 Fa e O� `O P- \e' QO 42' be �� oQ �'aOA Program statistics are available upon request. 1 Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 6 5 5 6 22 17 Notice of Pendancy 35 33 26 23 117 123 S* 14 10 gliIMill 1 Maill'WA 8 6 . —2018 Sheriff Sales 4 X2018 Notice of Pendency 2 –.. .. `_./ ''41111111.- - 2017 Sheriff Sales 0 ) 6 6c:5, \ O� C0 J0 J'' oes as os JO �OO PQJa °d �wm a � � iago> ,eoe �JPeQaOD S Hastings • Quarter 4,2018 s Dakota county .51,..;:a° Statistics through December 31,2018 nipCommunity Development Agency CDA as of September 30 as of December 31 Elderly/ Youth/ Elderly/ Youth/ Previous • Development-Based Housing Programs Disabled Family Disabled Family Quarter .P CDA Housing Programs 103 80 103 80 0 Project Based Housing Choice Vouchers 0 0 0 0 0 Other Affordable Housing Programs 109 83 109 83 0 Total Development-Based Housing Units 212 163 212 163 0 Tenant-Based Housing Programs All All Quarter Ait Tenant Based Housing Choice Vouchers 89 86 -3 A Portable Incoming Vouchers 3 6 3 lK Other Rental Housing Subsidy Programs 9 10 1 Total Tenant-Based Housing Vouchers 101 102 1 Tenant-based program vouchers may be used by residents of development-based housing. t CDA Properties in Hastings Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 1 0 2 1 4 Mississippi Terrace•40 units Weatherization Projects Completed 0 1 0 0 1 Rivertown Court•63 units i a Workforce Housing Developments efebruMarketplace Townhomes•28 units Weatherization .1-11V.-':;,'2-11'1 •Ai Pleasant Ridge Townhomes•31 units - ' West Village Townhomes•21 units •JuN Housing Rehab&Improvement Scattered Site Public Housing •�o.me• 20 units 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Other Affordable Housing i. First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD in Hastings Section 202 Housing First Mortgage Loans&Downpayment 0 3 1 0 4 Oak Ridge•109 senior units Mortgage Credit Certificate Requested 0 3 1 0 4 Non-CDA Managed Tax Credit 2.5 __ Guardian Angels Apartments& Townhomes•26 affordable 2 family units of 30 total units 1.5 Artspace Hastings Lofts•37 affordable units 1 First Mortgage Loans 0.5 - Alltik — . ........Mortgage Credit Certificate Program statistics are available upon request. 0 —, Jock `J 6 oer Pci� �6A ,Jce �J\- J�,5` �,c, �o e� dye ,06 �o� kew P,309 Oe�o o O000 Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total -- Sheriff Sales 3 3 3 7 16 17 Notice of Pendancy 21 30 19 27 97 86 14 misimiummesaimmow. 12 amaiminiiiimmalawA 10 8 IIKI _ II —2018 Sheriff Sales 6 4 X2018 Notice of Pendency 2 't —2017 Sheriff Sales .S°' `.§:> Offer p's' �o ,Jcm �J�s\ sp <ces \otos Fye Fro` hoc �0,0 - eQ�a Qo e Oe S \-''') O pe. Inver Grove Heights • Quarter 4,2018 n. Dakotayu County 5/4;:a° Statistics through December 31,2018 Community DevelopmentAgency �jj/)� CDA �(�� as of September 30 as of December 31 '/_ Elderly/ Youth/ Elderly/ Youth/ Previous Development-Based Housing Programs Disabled Family Disabled Family Quarter .tQ CDA Housing Programs 177 78 177 78 0 Project Based Housing Choice Vouchers 0 40 0 40 0 1 Other Affordable Housing Programs 0 305 0 305 0 Total Development-Based Housing Units 177 423 177 423 0 1 Tenant-Based Housing Programs All All Quarter AA Tenant Based Housing Choice Vouchers 162 158 -4 1K Portable Incoming Vouchers 5 6 1 tOther Rental Housing Subsidy Programs 8 6 -2 Total Tenant-Based Housing Vouchers 175 170 -5 Tenant-based program vouchers may be used by residents of development-based housing. p.t CDA Properties in Inver Grove Heights d Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 5 2 1 1 9 Carmen Court•51 units Cahill Commons•60 units i Weatherization Projects Completed 0 4 3 0 7 Hillcrest Pointe•66 units I 1 a r ,. .„ •• a� Workforce Housing Developments Weatherization : Spruce Pointe Townhomes•24 units an .Mw Mil Layfayette Townhomes•30 units Inver Hills Townhomes•24 units Housing Rehab&Improvement o Scattered Site Public Housing .oma 1 1 units 0 1 2 3 4 5 6 7 8 9 10 First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Other Affordable Housing C� in Inver Grove Heights First Mortgage Loans&Downpayment 0 1 1 2 4 Project Based Vouchers Mortgage Credit Certificate Requested 0 1 1 2 4 Prairie Estates•40 family units 2.5 Section 236 Housing 1.5 111111.111 . Rolling Meadows Cooperative• 202 units Non-CDA Bond Financed Housing 1 -First Mortgage Loans Blackberry Pointe•92 affordable 0.511.111111111F• I -Mortgage Credit Certificate family units of 219 total units 111111 WV 0 - , el QCJaC��`,P ,&.o F9i\ SCJ �Jc- s.-\ J4JS\��.pP',G\ape'l��.pe'l��.Q Program statistics are available upon request. Fa P So9'� O �p Qao of Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 4 5 4 2 15 19 Notice of Pendancy 32 16 16 28 92 87 KP 18 `X".. 16 14 12 10 8 —2018 Sheriff Sales 6 -2018 Notice of Pendency 4 2 -2017 Sheriff Sales oc\ oc\ or 9F 0-A .,..,0 \5 �2i e} e'; e' es ocs ms, �a P �� ,o, � Oc� o„O° a e0ta oe Fa P' 9,, oo So \-' O Ele Lakeville • Quarter 4,2018 niDakota county � 4A-�' Statistics through December 31,2018 Community Development •,j�/(�G_T/!`J'vV.i' Agency Ojai CDA as of September 30 as of December 31 y_ . Elderly/ Youth/ Elderly/ Youth/ Previous Development-Based Housing Programs Disabled Family Disabled Family Quarter .�O CDA Housing Programs 264 175 264 175 0 Project Based Housing Choice Vouchers 0 0 0 0 0 1 Other Affordable Housing Programs 24 126 24 126 0 Total Development-Based Housing Units 288 301 288 301 0 dTenant-Based Housing Programs All All Quarter Tenant Based Housing Choice Vouchers 151 147 -4 Ne, Portable Incoming Vouchers 11 11 0 l'K Other Rental Housing Subsidy Programs 8 8 0 Total Tenant-Based Housing Vouchers 170 166 -4 Tenant-based program vouchers may be used by residents of development-based housing. t CDA Properties in Lakeville Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 0 0 2 2 4 Winsor Plaza•64 units Main Street Manor•51 units Weatherization Projects Completed 2 0 3 2 7 Crossroads Commons•87 units I .,.., Argonne Hills•62 units .... .. Weatherization °" ..� M Workforce Housing Developments .Mav • Country Lane Townhomes•29 units •'°" Prairie Crossing Townhomes•40 units Housing Rehab&Improvement Meadowlark Townhomes•40 units .o«a� . . Cedar Valley Townhomes•30 units O 0 1 2 3 4 5 6 7 g . •meg Keystone Crossing•36 units Ol Scattered Site Public Housing i First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 23 units First Mortgage Loans&Downpayment 1 1 0 0 2 Mortgage Credit Certificate Requested 1 1 0 0 2 Other Affordable Housing in Lakeville 1.2 ... Section 202 Housing 1 Fairfield Terrace•24 units 0.8 Non-CDA Managed Tax Credit 0.6 — Lakeville Court Apartments•50 units 0.4 —First Mortgage Loans Lakeville Pointe•49 units 0.2 —Mortgage Credit Certificate Non-CDA Other 0 Scott-Carver-Dakota •4 affordable units 06 a. `60 Q� pi ce Jai JSt ee s,. av e,c Sear ,1a are' Program statistics are available upon request. IHome Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total I Sheriff Sales 4 4 8 0 16 41 Notice of Pendency 35 39 34 35 143 187 Kt) 25 l� 20 15 10 — -2018 Sheriff Sales 2018 Notice of Pendency 5 —2017 Sheriff Sales O� Oc �r Qs\ O� ce �-\ J`'> os es 0k ek ‘)5. Q Cr )J Jai e ,SPO ,C� ,C,p �a� ke'a p-SeQ,se Qo doe Oeoe Mendota Heights • Quarter 4,2018 ADakota county Statistics through December 31,2018 Community Development9rat144/ IN Agency0/ 19 CDA `� as of September 30 as of December 31 '/_ Elderly/ Youth/ Elderly/ Youth/ Previous • Development-Based Housing Programs Disabled Family Disabled Family Quarter • :3 CDA Housing Programs 125 24 125 24 0 Project Based Housing Choice Vouchers 12 0 12 0 0 1 Other Affordable Housing Programs 0 1 0 1 0 Total Development-Based Housing Units 137 25 137 25 0 7_ Tenant-Based Housing Programs All All Quarter tt Tenant Based Housing Choice Vouchers 33 32 -1 Portable Incoming Vouchers 0 0 0 t�G Other Rental Housing Subsidy Programs 0 0 0 Total Tenant-Based Housing Vouchers 33 32 -1 Tenant-based program vouchers may be used by residents of development-based housing. t CDA Properties in Mendota Heights Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 1 1 1. 0 3 Parkview Plaza•65 units Village Commons•60 units Weatherization Projects Completed 3 0 1 0 ° ° 4 P ( ., "" Workforce Housing Developments "°"°" Hillside Gables Townhomes•24 units Weatherization • :: Scattered Site Public Housing •,"N 1 unit Housing Rehab&Improvementt I Id October - •e •m �o •m Other Affordable Housing b 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 in Mendota Heights k) Project Based Vouchers First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Dakota Adults• „p -- ---- 12 handicapped units First Mortgage Loans&Downpayment 0 0 0 0 0 Mortgage Credit Certificate Requested 0 0 0 0 0 1 -.- Program statistics are available upon request. 0.9 0.8 0.7 0.6 0.5 -- 0.4 -First Mortgage Loans 0.3 0.2 -Mortgage Credit Certificate 0.1 — — 0 , , , 6 c\ r O<( re )i J5° eI e; oc o I CO O OI- PC mspap �.p .p )O <<O \ P \eO' 00 QQo0 So O Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 0 0 22 4 12 oS Notice of Pendancy 5 8 4 4 21 20 P 4.5 � 4 3.53 2.5 2 . X2018 Sheriff Sales LS -2018 Notice of Pendency 1 0.5 -2017 Sheriff Sales 6 c r i o Oi 5's os es os os JO �JO 6 Pe �O )JC )J J�J F° ,�0`0 �� F� )Oc <(,, 4' P Q\e, Oo opo eoo So O Rosemount • Quarter 4,2018 pe Dakota county < yy Statistics through December 31,2018 Cp �jV!{jvvi' -(/�(j nil di Agoncyommunity Develoment CDIA I as of September 30 os of December 31 '/_ •r Elderly/ Youth/ Elderly/ Youth/ Previous Development-Based Housing Programs Disabled Family Disabled Family Quarter * CDA Housing Programs 104 32 104 32 0 Project Based Housing Choice Vouchers 39 28 39 28 0 Other Affordable Housing Programs 0 90 0 90 0 Total Development-Based Housing Units 143 150 143 150 0 •/ Tenant-Based Housing Programs All All Quarter AA d Tenant Based Housing Choice Vouchers 54 55 1 Portable Incoming Vouchers 3 4 1 NCPortable Rental Housing Subsidy Programs 0 1 1 Total Tenant-Based Housing Vouchers 57 60 3 Tenant-based program vouchers may be used by residents of development-based housing. t CDA Properties in Rosemount g Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 1 0 2 1 4 Cameo Place•44 units Weatherization Projects Completed 0 3 1 1 5 Cambrian Commons •60 units 1 Workforce Housing Developments "•"° Carbury Hills Townhomes•32 units Weatherization qa, •^^ Scattered Site Public Housing �;ro 31 units er t Housing Rehab&Improvement h „'°ber • Other Affordable Housing ® in Rosemount til Project 1 2 3 4 5 6 Protect Based Vouchers First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Rosemount Plaza•39 senior units y� `�” Rosemount Greens•28 family units .' First Mortgage Loans&Downpayment 0 1 3 0 4 Mortgage Credit Certificate Requested 0 1 3 0 4 Non-CDA Bond Financed Housing �_ Waterford Commons•23 affordable units 2.5 of 106 total units 2 1 IIII II, _ Non-CDA Managed Tax Credit 1.5 11111 Park Place•36 units 1 —First Mortgage Loans 0.5 -NW - - -Mortgage Credit Certificate Program statistics are available upon request. C'' o6 ar Q`� o� LP ,J;� JS't tea` tea` ,�` .oa` aCJ •& �O P Cn PJai �( G,�O ��( ��( �� Saga O �o� oao of 1 Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 2 6 4 4 16 11 cS of Notice of Pendancy 26 23 24 32 105 83 CI Np 16 \h 14 12 10 8 —2018 Sheriff Sales 6 4 —2018 Notice of Pendency 2 ®2017 Sheriff Sales 0 6 LA oo p o5 co si, Jy �6' :cp.' �o taJaa PQsP F ,,oc a � � a Pe o aaoa aQQboQe S South St. Paul • Quarter 4,2018 ETI--e. Dakota County y Statistics through December 31,2018 Community Development IIii Agency Q/{�� �(/�I( CDA `� as of September 30 as of December 31 ../_ Elderly/ Youth! Elderly/ Youth/ Previous Development-Based Housing Programs Disabled Family Disabled Family Quarter .gyp CDA Housing Programs 170 0 170 0 0 Project Based Housing Choice Vouchers 0 44 0 44 0 Other Affordable Housing Programs 296 51 296 51 0 Total Development-Based Housing Units 466 95 466 95 0 -V_ Tenant-Based Housing Programs All All Quarter 44 Tenant Based Housing Choice Vouchers 196 204 8 t4.4 'K, Portable Incoming Vouchers 13 15 2 Other Rental Housing Subsidy Programs 28 24 -4 Total Tenant-Based Housing Vouchers 0 237 243 6 Tenant-based program vouchers may be used by residents of development-based housing. t CDA Properties in South St.Paul p Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 3 4 6 5 18 River Heights Terrace•54 units s Weatherization Projects Completed 5 5 2 5 17 Dakota Heights•56 units Thompson Heights•60 units .F•a a Weatherization ..o Other Affordable Housing I OMNI .Mav •, in South St.Paul •'u" Project Based Vouchers Housing Rehab&Improvement "`•P'•'"°e' Camber Hills Townhomes•44 units t ' 111=1111111 MOB - .oma Low Rent © 0 2 4 6 8 10 12 14 16 18 20 John Carroll• 165 units of Nan McKay• 131 units $ First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Non-CDA Managed Tax Credit First Mortgage Loans&Downpayment 1 2 4 2 9 Kaposia Terrace Townhomes• Mortgage Credit Certificate Requested 1 2 4 2 9 19 affordable units of 20 total units 3.5 — --_ Non-CDA Bond Financed Housing 3 Kaposia(Rose)Apartments• 20 affordable units of 48 total units 2.5 2 Non-CDA Other 1.5 First Mortgage Loans Scott-Carver-Dakota CAP Agency • 1 12+affordable units 0.5 -Mortgage Credit Certificate 0 cJa6 Jab a`6, PQM\ �a� )JCJ ,..-.\ �JS� .a& OBJ` ,OJT �Jl Program statistics are available upon request. O „& PJ �eF o� ..4 c, � F° SoQ O ,,'o oe Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total O4 Sheriff Sales 5 8 7 8 28 22 oC Notice of Pendancy 33 36 28 28 125 116 Q20 ---_______ — _ 18 16 14 12 10 2018 Sheriff Sales 8 6 — —2018 Notice of Pendency 4 `.p �•— 2017 Sheriff Sales 2 .rriwjr� 0 ) A 6 a )J. J56 o e,csel] e J OQ )J � O rO0 C F ocro pJoe koe,QOowe• O West St. Paul • Quarter 4,2018 F Dakota county 9froa- vvy y Statistics through December 31,2018 Community Development (/v./' `(//r( II Agency ," CDA �+ as of September 30 as of December 31 Elderly/ Youth/ Elderly/ Youth/ Previous Development-Based Housing Programs Disabled Family Disabled Family Quarter CDA Housing Programs 101 0 101 0 0 Project Based Housing Choice Vouchers 0 0 0 0 0 1 Other Affordable Housing Programs 304 214 304 214 0 .) Total Development-Based Housing Units 405 214 405 214 0 b Tenant-Based Housing Programs All All Quarter A4it Tenant Based Housing Choice Vouchers 373 363 -10 A Portable Incoming Vouchers 22 25 3 NC Other Rental Housing Subsidy Programs 30 32 2 Total Tenant-Based Housing Vouchers 0 425 420 -5 Tenant-based program vouchers may be used by residents of development-based housing. t CDA Properties in West St.Paul Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Senior Housing Developments Rehab&Improvement Loans Closed 0 1 2 0 3 Haskell Court•42 units Weatherization Projects Completed 0 2 2 5 9 The Dakotah•59 units a .bnu°" Scattered Site Public Housing 10 units Weatherization ,Aaa� Colleen Loney Manor•80 units 1 .. MI* 3 �,°" Other Affordable Housing Housing Rehab&Improvement •oc' in West St.Paul aber O •oma Section 202 Housing Mount Carmel•60 units Ol 0 1 2 3 4 5 6 7 8 9 10 i First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Low Rent Q 4 units First Mortgage Loans&Downpayment 1 1 0 1 3 Mortgage Credit Certificate Requested 1 0 0 1 2 Non-CDA Bond Financed Housing The Sanctuary of West St.Paul• 1.2 __ _ 164 senior units 0.8 �A I Non-CDA Covington Court•t 160 units 0.6 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 1III�� Non-CDA Other 0.4 11111111/1111111111111111111111111111111111111111/ -First Mortgage Loans The Oaks of West St.Paul•25 affordable 0.2 IIIIIIIIIIIIIlllkIIIIIIIIIIIIIIIIIIIIIIII —Mortgage Credit Certificate units of 132 total units IIIIIIIIIIIIIIIIIIIIIIIV Westview Park• 15 affordable units 0 of 72 total units o6 o6 Gr 6-� ca J`a J� a� as o; as Fe P Sm O boa Oe0 Program statistics are available upon request. 1Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 3 4_��� P 2 2 11 IS Notice of Pendancy 21 23 20 30 94 94 Kp 14 l� 12 10 • 8 6 -2018 Sheriff Sales 4 -2018 Notice of Pendency 2 " ,.. = .. ,..,. r -2017 Sheriff Sales 0 )aCJ <5e0J �O P ) Poi Q,�e OGo we eGe Se ÷0 O Small Cities • Quarter 4,2018 r6A CDakotaomma ity Development 51111:ext r-� Statistics through December 31,2018 rCommunity Deve#apment -J.�' Agency T° CDA `� as of September 30 as of December 31 Tenant-Based Housing Programs All All Quarter ,gyp Cannon Falls 0 Castle Rock 0 1 Douglas Township 0 Empire 0 Hampton 4 5 1 Lilydale 0 Mendota 1 0 -1 Miesville 0 A , Northfield 0 t.4.4 Northfield 0 Ravenna 0 Sunfish Lake 0 Vermillion 0 Waterford 0 Total Tenant-Based Housing Vouchers 5 5 0 Tenant-based programs include Tenant Based Housing Vouchers and Other Rental Housing Subsidy programs • Home Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD Small Cities include: Cannon Falls 0 Cannon Falls Castle Rock 0 Castle Rock O Douglas Township 0 Douglas Rownship Empire 0 Empire $ Hampton 0 *..;:i Lilydale 0 Hampton Mendota 0 Lilydale Miesville 0 Mendota Northfield 0 Miesville Randolph 0 Northfield Ravenna 0 Randolph Sunfish Lake 0 Ravenna Vermillion 0 Sunfish Lake Waterford 0 Vermillion Programs include Weatherization,Home Improvement&Rehabilitation Loan programs Waterford First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD First Mortgage Loans Closed&Downpaymeni 0 0 0 0 0 Mortgage Credit Certificate 0 0 0 0 0 Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 YTD 2017 Total Sheriff Sales 3 1 3 1 8 9 Notice of Pendancy 17 5 5 8 35 42 Appendix Development Based Housing Programs Development Based Housing Programs are housing sites where the eligible subsidy is tied to the site and the units remain affordable for the duration of the funding contract.The site is made affordable usually through public funding for construction along with an ongoing operating subsidy. Units may target special needs while others may be general occupancy units.Development Based Housing is listed separately at the bottom of each city's report. Development Based Housing Programs include: CDA Senior Housing Program provides one-and two-bedroom rental apartment units for persons 55 years of age and older. The CDA issues tax exempt bonds,credit enhanced with a general obligation pledge from Dakota County and has created a common bond fund. Under this financing structure,rental revenue from all of the buildings is pooled to pay to expenses and debt service for all the buildings. About 72%of the debt service on the bonds is paid from the supplemental revenues,including tax increment revenue and the CDA's property tax levy that is exclusively dedicated to senior housing. Land and public improvements are paid for in part with CDBG, HOME and other local funds. CDA Workforce Housing Program provides high quality housing at an affordable rate to meet the needs of households earning modest wages. The affordable workforce housing units are financed through a the CDA's Family Housing Partnership Program,which was developed as a public/private limited partnership to syndicate low income housing tax credits and raise equity from the private sector for the development's construction. Financing packages also include below market loans and grants from public,private and non-profit sources. CDA Youth Supportive Housing Program is a supportive housing development that provic es 24 units of affordable,safe, stable housing at Lincoln Place with services for young adults ages 18-25 who are homeless or are at significant risk of becoming homeless. The CDA is the owner,developer and property manager of Lincoln P ace. Dakota County Community Services is the sponsor of the project and serves as a referral service for youth who would be good candidates for Lincoln Place. To provide one-on-one case management at Lincoln Place, Dakota County Community Services contracted with The Link to provide advocacy,life skills training,goal setting around education,employment and overall health(chemical, mental and physical)to help residents transition to independence. Project Based Housing Choice Vouchers(Section 8)is a rental subsidy that can cover all of the units in a given housing development or a designated number of units. Rents are set at 40%of the tenant's income and are paid to the project's owner. The remainder of the rent(the subsidy amount)is paid by the federal government. Since the assistance is tied to the unit,a household who moves from the project-based unit does not have any right to continued housing assistance. However,they may be eligible for a tenant based voucher when one becomes available. These rental units are owned and operated by private owners,either for-profit or not-for-profit. Section 202 Housing units are available to elderly or handicapped residents. This program aims to expand the supply of affordable housing with supportive services for the elderly by providing capital advances to private,not-for-profit organizations to finance property acquisition,site improvement,conversion,demolition,relocation and other expenses associated with supportive housing for the elderly. Project Rental Assistance Contracts are used to cover the difference between the HUD approved operating costs per unit and the tenant's rent. Housing financed under this program may include appropriate support services and activities such as cleaning,cooking and transportation for elderly persons who are frail or at risk of being institutionalized. Section 202 is a federally funded program. Section 811 Housing is a supportive housing program with units available to persons with disabilities. This program provides capital advances to not-for-profit sponsors to finance the development of rental housing with supportive services for persons with disabilities. The capital advance is interest free and does not have to be repaid as long as the housing remains available for very low-income persons with disabilities for at least 40 yea-s. The program also provides project rental assistance to cover the difference between the HUD approved operating costs per unit and the amount the resident pays. This is a federally funded program. Section 236 Housing units are generally fixed or flat rents,meaning that they do not vary according to tenant income. The government provided a large mortgage subsidy that reduced interest rates to as little as 1%. These rental units are owned and operated by private owners. Scattered Site Public Housing are rental units owned and operated by a Public Housing Agency,such as the CDA. These housing units consist of high-rise apartments,single family homes,duplexes and townhones. Tenant income eligibility is based on 80%of area median income. Residents of public housing units pay 30%of their ncome for rent. Rental payments go to the public housing agency and are used for the operation and maintenance costs of the housing. Federal subsidies also assist with operating costs. In addition to scattered site units,the CDA owns Colleen Loney Manor,which is an apartment building for low-to- moderate income person who are 62 years of age and older,handicapped or disabled,near elderly(50 years or older)and single persons. South St. Paul HRA administers public housing program for the City of South St. Paul. Low Rent Housing are units of housing for families,seniors and disabled households,which are federally subsidized. Farmers Home Administration(FMHA)are units if housing for the elderly or families,which are federally funded. Tenant Based Housing Programs Tenant Based Housing Programs are when the eligible housing subsidy is tied to the tenant and the subsidy travels with the tenant.The housing subsidy makes up the difference between the market rate rent and the tenant's income based payment. Tenant Based Housing Programs include: Tenant Based Housing Choice Voucher(Section 8)Program is the federal government's major program for assisting very low-income families,the elderly and the disabled to afford decent and safe housing in the private market. A household that is issued a housing voucher is responsible for finding a suitable housing unit of the household's choice where the owner agrees to rent under the program. Rental units must meet minimum standards of health and safety,as determined by the public housing authority. The CDA administers this program in Dakota County. In addition to the CDA,the South St. Paul HRA administers a Housing Choice Voucher Program for the city of South St. Paul. Tenant Based Portable Incoming Vouchers(Section 8)are Housing Choice Vouchers that are issued by a Public Housing Authority other than the CDA but are administered by the CDA because the tenant eligible for the housing subsidy moved into Dakota County. Tenant Based Portable Outgoing Vouchers(Section 8) are Housing Choice Vouchers that are issued by the CDA but are administered by another Public Housing Authority because the tenant eligible for the housing subsidy moved out of Dakota County. Continuum of Care is a Federally funded program that provides rental assistance to homeless persons with disabilities. The CDA administers the housing subsidy while Dakota County Social Services refers appli:ants and provides supportive services for program participants.This program provides intensive case management for households most at risk for chronic homelessness to help them to achieve long-term stability. Continuum of Care is a Federally funded program through the Department of Housing and Urban Development. Bridges serves persons with chronic and persistent mental illness.The CDA administers the housing subsidy portion of this program and Dakota County Social Services provides supportive services to help stabilize participating households.This is a temporary subsidy that"bridges"the gap between homelessness,treatment centers,institutional facilities,and permanent affordable housing. Bridges is a state funded program through a grant from the Minnesota Housing Finance Agency. Family Unification Program provides housing vouchers targeted to applicants in two categories: 1)Families for whom the lack of adequate housing is the primary reason for placement of a child in foster care,or is the cause for delays in reuniting a child with their family,and 2)Youth between the ages of 18 and 21 years who left foster care at 16 or older and who lack adequate housing. The CDA works with Dakota County Community Services to identify and connect with families and youth who might be eligible for the program. Family Unification Program is a federally funded program. Veteran Affairs Supportive Housing(VASH) is a unique partnership between the Depart ent of Veteran Affairs and the Department of Housing and Urban Development that provides long-term case managme•nt,supportive services and permanent housing support for chronically homeless Veterans. The program seeks to ser e the neediest,most vulnerable homeless Veterans. A key component of the program is VA's case management services. Case management services promote housing stability and support recoveries from physical and mental illnesses and •ubstance use disorders. These services are designed to improve the Veteran's physical and mental health and enhance t e veteran's ability to live in safe and affordable housing within Dakota County. Housing Trust Fund is a State Funded program for all individuals or families who must be eferred by Dakota County Supportive Housing Unit(SHU). This program is administered by the Dakota County CDA. Housing Trust Fund(Homeless)is a State Funded program for all individuals or families w o must be referred by Dakota County Supportive Housing Unit(SHU). This program is administered by the Dakota Coun y CDA. 77119?1 ve, 014/41 4 Co && or, Housing Rehabilitation and Home Improvement Loan Program assists low and moderate income homeowners with making repairs and improvements to their homes. Funds are commonly used for roof re•lacement,furnace replacement, electrical and plumbing repairs,insulation and special needs improvements such as ramp:nd bathroom and kitchen modifications. The Housing Rehabilitation and Home Improvement Loan Program is fund•d by a variety of sources including the Minnesota Housing Finance Agency(MHFA),Community Development Bloc Grant(CDBG),Home Investment Partnership Program(HOME),Housing Opportunities Enhancement Program (HOPE)and CDA general fund dollars. MHFA Community Fix Up Fund(CFUF)-75%MHFA+25%HOME funds.State and Agenc funds to help discount loan rates to rehab homes. MHFA Fix-Up Fund(Home improvement Loan)-State funds to provide low-interest loan• to homeowners with income below$96,500. Max loan$35,000. MHFA Home Rehab Loan is State funded to provide no-interest loans to eligible extremel low-income homeowners(30% Area Median Income)to make homes more livable,accessible and energy efficient. Community Development Block Grant(CDBG)Loans-federally funded program for publi facilities,housing, neighborhood revitalization,public services,planning and project administration.These a e home rehab loans. HOME Program Loans is a federally funded program available for home rehabilitation,ho ebuyer programs, rehabilitation of rental housing,tenant based rental assistance and new construction of a fordable housing.These are home rehab loans. Weatherization services are cost-effective energy efficiency measures for existing reside tial and multifamily housing with low-income residents. A wide variety of energy measures that encompass the buildi g envelope,its heating and cooling systems,its electrical systems and electricity consumption are the focus. This pro:ram is targeted to recipients of fuel assistance. It has the effect of reducing the demand for future fuel assistance by incr:asing energy efficiency. The Weatherization Program is administered as a joint effort between the CAP Agency and the CDA. Funding is provided to the CDA on an annual basis from the Minnesota Department of Commerce. First Time Homebuyer Program provides low interest rate mortgages and entry cost assis ance for buyers purchasing their first home in Dakota County. The CDA finances this program through the issuance o mortgage revenue bonds. The CDA partners with area mortgage lenders who originate loans directly to first time home•uyers. In conjunction with the first time homebuyer program,the CDA also offers downpayment and/or closing cost assi.tance. All homebuyers applying for a First Time Homebuyer Loan must complete an approved homebuyer educa ion course before closing on tk",.letnet weir wan. Mortgage Credit Certificate(MCC)Program is available to homebuyers using the First Time Homebuyer Program. It is a certificate(filed with the IRS)that allows the homeowner to use 20%of their annual mortgage interest payment as a credit toward their tax liability.It can be used throughout the life of the loan. A specified amount of the CDA's bond authority is periodically used to assist first time homebuyers with a market rate mortgage product combined with a mortgage credit certificate.All homebuyers applying for a Mortgage Credit Certificate must complete an approved homebuyer education course before closing on their loan. Downpayment Assistance Loans are available to homebuyers using the First Time Homebuyer Program and meet the income requirements. Homebuyers can apply for downpayment assistance loans of up to$10,000. Home Stretch Homebuyer Education is a course that teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Classes are taught by CDA Housing Counselors and industry professionals such as mortgage lenders,Realtors and inspectors. Pre-Purchase Counseling Sessions are individual counseling sessions for homebuyers to meet with a trained homeownership specialist to answer questions about homeownership and review the household's financial situation to develop a plan to become a homeowner. A2Pid O i4441e Sheriff Sales are distressed public property auctions. It is generally the last step in the foreclosure process after the homeowner has exhausted all their options to avoid defaulting on a mortgage. Once the borrower has defaulted,the lender will file suit in court to recover its loan loss,and if the court awards a judgment,the property will be scheduled to be sold at a public auction. 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. Adam Kienberger From: DEED Media <MNDEED@public.govdelivery.com> Sent: Thursday, March 7, 2019 9:58 AM To: Adam Kienberger Subject: Minnesota adds 3,800 Jobs in January For Immediate Release Contact: Shane Delaney, 651-259-7236 March 7, 2019 shane.m.delaney(astate.mn.us Steve Hine, 651-259-7396 steve.h i ne(&state.m n.us Minnesota adds 3,800 Jobs in January '"Unemployment rate ticks up to 3 percent'" ST. PAUL - Minnesota added 3,800 jobs statewide during the first month of 2019, and the state's unemployment rate increased to 3 percent, according to seasonally adjusted figures released today by the Minnesota Department of Employment and Economic Development (DEED). The U.S. unemployment rate was 4.0 percent in January. December's previously announced gain of 500 jobs was revised downward to 800 jobs lost. The state's unemployment rate in December was also revised upward to 2.9 percent. Over the year, Minnesota has added 7,803 jobs since last January, the lowest over-the- year job gain since regaining positive growth following the recession. "Minnesota has started the year on a positive note with 3,800 new jobs," said DEED Commissioner Steve Grove. "However, with revisions we continue to see job growth slowing across the state as our labor force continues to tighten." Leisure and hospitality led all sectors in January with 2,200 new jobs, followed by trade, transportation and utilities (up 1,400) and financial activities (up 1,200). The largest job losses were in education and healthcare, which lost 1,500 jobs. All other industries saw smaller changes, including logging & mining (up 100), manufacturing and information (each down 300), professional & business services (down 100), other services (up 800), and government (up 300). In the Metropolitan Statistical Areas, the following regions gained jobs in the past 12 months: Rochester MSA (up 1.7 percent), and St. Cloud MSA (up 1.4 percent). Minneapolis-St. Paul MSA and Duluth MSA reported no growth. The Mankato MSA lost jobs (down 0.7 percent). DEED also announced revised job figures for last year based on updated data from the federal Bureau of Labor Statistics. Those figures (not seasonally adjusted) indicate Minnesota gained 10,164 jobs from December 2017 to December 2018, rather than the 31,441 jobs that were originally estimated. Use the link to see DEED's alternative measures of unemployment. 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 DEED on Twitter. 2 3/12/2019 FaceTime with incoming Greater MSP CEO Peter Frosch-Minneapolis/St.Paul Business Journal FOR THE EXCLUSIVE USE OF AKIENBERGER@CI.FARMINGTON.MN.US From the Minneapolis / St. Paul Business Journal: https://www.bizjournals.com/twincities/news/2019/03/12/facetime-incoming- greater-msp-ceo-peter-frosch.html Incoming Greater MSP CEO Peter Frosch wants more risk-taking entrepreneurs Mar 12, 2019, 5:00am CDT Updated: Mar 12,2019,9:12am CDT Subscriber-Only Article Preview I For full site access: Subscribe Now Peter Frosch was named CEO of Greater MSP int February and will begin the job March 22. Frosch grew up in Winona and spent his adult 3; years in Chicago, Dublin, New York, Baltimore and Washington, D.C. He worked at Minneapolis-based Environmental Initiative and later as a legislative director for U.S. Rep. Betty McCollum, DFL-Minn. NANCY KUEHN Peter Frosch is incoming CEO of Greater MSP. He's been with Greater MSP for six years and developed the organization's Regional Indicators Dashboard, which measure the Twin Cities on things like net migration, job growth, graduation rates, crime, transit and racial disparities. The metro is then compared to 10 peer cities. Frosch will take over for Michael Langley, the inaugural CEO of the regional economic development organization that launched in 2011. Frosch recently spoke with the Business Journal about his new role. The interview has been edited for length and clarity. What are your goals as CEO of Greater MSP? Over the past year-plus, dozens of leaders and organizations have been part of setting a new vision for the future of https://www.bizjournals.com/twincities/news/2019/03/12/facetime-incoming-greater-msp-ceo-peter-frosch.html?s=print 1/4 3/12/2019 FaceTime with incoming Greater MSP CEO Peter Frosch-Minneapolis/St.Paul Business Journal this region — to lead the world in inclusive economic growth by welcoming all, empowering talent and igniting innovation. We have a bold vision for the future of this region. That means we are going to be moving more aggressively in certain directions in 2019 and beyond. That specifically will involve increased focus on startups and innovation; on the global food and agriculture sector; on ensuring the benefits of growth in our economy are reaching all residents of our community; and we are going to continue all the great work that is happening. How is the vision different from the first eight years of Greater MSP? It feels more ambitious and bolder. That is by intention. The board, leading partners and others were doing this work over the past couple years. One of the main takeaways was that we're feeling confident that as a region we have learned how to come together and do the work of economic development, whether it's branding, business investment, talent or some of these other areas. It's time to think bigger — more global, more future-oriented. It has some more specifics to it. We are talking about welcoming all and innovation and talent. Nothing that specific was called out in the original vision, and those are very intentional. One thing I don't hear in the vision is an effort to try to attract companies from out of state. Is that not an emphasis anymore, given the low unemployment rate here? The vision does certain things and not others. ... It says this is what we need to become, but it doesn't tell you exactly how we get there. So how we build, how we lead the world in economic growth — we have to grow. And one of the ways we grow is by expanding and retaining and attracting job creation opportunities in this region. So not only is it still in the scope, but we will be doubling down on getting business investment and global and regional branding. It's been a long time since the Twin Cities has wrangled in a large company's headquarters. Is that a realistic possibility of happening, or are we not situated for that? There have been very material company locations here, and expansions that have moved into this region from outside of the state, from outside the country. That is occurring. https://www.bizjournals.com/twincities/news/2019/03/12/facetime-incoming-greater-msp-ceo-peter-frosch.html?s=print 2/4 3/12/2019 FaceTime with incoming Greater MSP CEO Peter Frosch-Minneapolis/St.Paul Business Journal But a headquarters — a corporate workforce? In some cases, it's a North American headquarters, large manufacturing headquarters. I take your point, but what I am saying is that we are seeing major investment of corporate locations into this metro, and we will continue to see those, and we will continue to work toward that investment. You said economic development is a team sport. There are some local government officials who haven't been happy with Greater MSP in helping spur investment in Minneapolis and St. Paul. Do you feel like there are some relationships to mend or improve in St. Paul and Minneapolis? Today, the working relationship with Minneapolis and St. Paul is very strong and we are excited about everything we are doing right now and going forward. And there's going to be a renewed effort to strengthen relationships with local government leaders across the region. You developed the Regional Indicators Dashboard. In looking at those numbers, what have been your biggest takeaways? What have you learned about the region you didn't know before? It's really helped clarify areas of strength, especially around livability, whether it's environmental quality, our park system or relative affordability to other great metros across the country. We do exceptionally well in those areas. The dashboard serves, in part, to give us confidence and encouragement to be telling those stories with renewed vigor. We are great at certain things, and we should be telling people. It also has revealed areas where we are not performing as well as we could be and need to be. That's very clear in dashboard data, about racial inclusion, whether it's participation in the labor force, the gap by race, poverty by race and wages. The dashboard has reinforced an emerging realization in our community that we must increase our success and include everyone in this economy. The outcomes need to improve for everyone, but especially in communities of color. Another one is around innovation. The data is mixed. In some areas we perform well and in others it would suggest we are not as comfortable with risk in this region as other regions. What do you mean by risk? If you look at the dashboard, there's a metric on new establishments and establishments surviving five years, and it's benchmarked. It shows that in our cohort of 10 metros we are tracking across the country, we are https://www.bizjournals.com/twincities/news/2019/03/12/facetime-incoming-greater-msp-ceo-peter-frosch.html?s=print 3/4 3/12/2019 FaceTime with incoming Greater MSP CEO Peter Frosch-Minneapolis/St.Paul Business Journal starting the least number of establishments but [our startups]have the highest success rate. There are many different interpretations you could draw from that, but it could suggest that because our rate of success is so high, we should be encouraged to try more. That's a deeper conversation I would like to have in the months ahead. Age: 40 Family: Wife and two children, ages 7 and 4 Education: Bachelor of Arts, history and American studies, Northwestern University (Illinois); Master of Arts, international relations, Dublin City University Hobbies: Playing with his kids Nick Halter Senior Reporter/Broadcaster Minneapolis/St. Paul Business Journal https://www.bizjournals.com/twincities/news/2019/03/12/facetime-incoming-greater-msp-ceo-peter-frosch.html?s=print 4/4 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b... HOME(/) / NEWS(/NEWS) / 2019(/NEWS/ARTICLES/2o19) / MARCH(/NEWS/ARTICLES/2019/MARCH) / WHO WANTS TO WORK IN MANUFACTURING? NeSNUFACTURING + MINING (HTTP://TCBMAG.COM/MANUFACTURING___MINING) Who Wants to Work in Manufacturing? Not nearly enough people seek gigs in Minnesota's biggest private industry, and that's hindering business. ..> . 1 :* irx lir ►1401 '�K a r s 1 gRity ...>_ aim , '..„,..„:..7.t.L::.,. ,,,, i. , sit _. - r ' 1 Osman Mussa operating a milling machine. (Photo by Eliesa Johnson) B in f lir0 MARCH 04, 2019 INGRID CASE(/PROFILES/INGRID-CASE) Industrial engineering student Osman Mussa landed a $15-an-hour manufacturing job during his first semester at Dunwoody College of Technology. http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 1/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b... "My friends are working at Kmart or fast food places," says the 19-year-old graduate of Lincoln International High School in Minneapolis. He had been planning to pursue a bachelor's degree in engineering, but when a Dunwoody representative spoke to his senior class last year, explaining that he could get hands-on experience along with an associate's degree, Mussa jumped at the opportunity. Now he operates milling machines every morning and takes classes in the afternoon before working a 3-9 p.m. shift at Tolomatic, an automation manufacturer in Hamel. "I love that I'm already doing hands-on work," he says. Born in Kenya and raised in England before his family moved to Minnesota when he was in high school, Mussa thinks he will stay here after graduating. "There are so many jobs in manufacturing. Minneapolis is a great place." SPONSORED BY (http://marconet.co/2yMR6Nr) TTltllr Myth Series #1: Managed Services Are Too Expensive [Video] (/sponsored-content/native-ad/2018/june/myth-series-1-managed-services-are-too-expensi-(1)) The state's 8,300 manufacturing companies—many of which can't seem to recruit new talent fast enough—wish more students realized what Mussa has discovered. Manufacturing comprised the largest private-sector portion of Minnesota's gross domestic product in 2017.According to Minneapolis-based Enterprise Minnesota, a manufacturing industry consulting firm,the sector contributed $49.2 billion, or 16 percent of the state's total GDP for that year.At$21 billion,the manufacturing sector's 2017 payroll was Minnesota's second largest,with annual wages an average of 16 percent higher than the average wage for all industries. We aren't just trying to hire unemployed people. We want to hire people who have choices" —Kevin Riedemann, Dufresne Manufacturing In 2018, Minnesota's manufacturing companies created 7,025 new jobs-22 percent of all new jobs in the state. Put simply, manufacturing is an economic mainstay for Minnesota. But if manufacturing is a thriving housecat now, it could be a tiger—if more Minnesotans wanted manufacturing jobs.Throughout the state, manufacturing companies have difficulty finding workers with the skills these employers need—or even workers who want to learn those skills. As a result,they hire fewer employees and take on less business than they might if workers with manufacturing skills were easier to find. "There may have been a time in manufacturing when companies were taking in "mirror-foggers"—if you could breathe,you were hired on,"says Kevin Riedemann,vice president of operations at DuFresne Manufacturing in Vadnais Heights. Those days are over. "We aren't just trying to hire unemployed people.We want to hire people who have choices," he says. "There's excitement, discovery, growth,and learning in many manufacturing jobs." Few replacements as boomers retire http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 2/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b... Older people are leaving and not enough new ones are coming in at Alexandria Industries. The firm's Minnesota operations include aluminum extrusion, machine fabricating, and plastic-injected molding for solar panel mounting systems, aluminum boats and docks, snowmobile parts,and gun accessories and components.A 2016 plant expansion in Alexandria increased potential machining capacity by 50 percent, but the company can't hire fast enough to operate at that level. "We have an aging workforce, and trying to find replacements for people with 35 or 40 years of experience gets to be difficult," says Tom Schabel,the company's CEO. "We're having to automate more and more in order to sustain the business we have." The company is also trying to interest more potential employees in manufacturing jobs. "We used to work closely with technical colleges and then we realized that fewer people were going to technical colleges," Schabel says. "So we went to high schools, but too often kids or their parents have already made up their minds against manufacturing or for a four-year degree. So we moved to middle schools, doing community open houses and working with robotics teams." In middle school, Schabel finds that students still have relatively open minds. Older students and their parents often envision factory work as repetitive, boring, and dirty.That's an outdated vision, Schabel says. "You can come in with a two-year technical degree and supervise a million dollars'worth of technology and three robots." By dismissing manufacturing jobs out of hand, he says,students miss out on opportunities for good careers. Alexandria Industries derives about 30 percent of its total revenue outside Minnesota, Schabel says. That's partly because of where the company's aluminum suppliers are located, as well as Minnesota's tax laws and environmental regulations. The biggest single factor, however, is Minnesota's dearth of potential employees. At Faribault Woolen Mill in Faribault,the product is different but the personnel problem is the same. "Some of our workers have been with us for decades," says CEO Tom Kileen. "The challenge is to find new people who can come in and learn from these workers and eventually replace them." http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 3/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry, and that's hindering b... • '11.111111111 {y .4e, ..... t. .. _ , ,.... . ..�. ..1� F , . 40 ..r 1., .,: , ". It , .,, 41, 4•...7 ,' mit* i . ,.,,,t i a..,,,1 „, ,7 I: ii,i a 5 . A i _.:6, IL „. .,,, ,. . ,, , 14 it lik ..+erg illt,. Dillon Branch and Jackson Kiely work on robotics at Dunwoody College of Technology.Both students already have jobs in their field.(Photo by Eliesa Johnson) Best employees are already working In Rogers, Minneapolis-based Graco makes equipment that pumps, meters, and measures fluids from paint and glue to industrial lubrication and candy coatings. "We probably manufacture 90 percent of everything we make either in the greater Twin Cities area or in Sioux Falls, S.D.," says Dave Thompson, Graco's worldwide director of engineering. Graco's products are made under high pressure, so the company needs a talent pool that's well-versed in hydraulics and electrical engineering. Before the 2008 financial crisis, it was fairly easy to find the people he needed, Thompson says. Since then, it's gotten harder, at least in part because the recovery has created very low state and national unemployment rates. "Everyone with desirable skills and a work ethic who wants to be employed is employed right now," Thompson observes. Thompson recruits students and new graduates from technical schools and universities. "We take students on as interns. They get a chance to learn and grow, and we get to see both the really good talent and the average talent. Then we can offer them jobs. We might offer a rising senior a job for after graduation," he says. "This has been a great way to get fresh talent. They're educated, they do all the things that older people might find challenging on the computer,they make you look at things with fresh eyes, plus they can learn from older employees." Finding older experienced employees is more difficult. For office and technical positions, Thompson relies on networking and he's working his networks harder than ever, he says. The company has also increased wages for assemblers and machinists, as well as offered premiums for working second and third shift. http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 4/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b... Overall, Thompson says, he'd take the workforce he has now, plus an increase of 3 to 5 percent. "We're short machinists and mechanical and electrical engineers," he says. "I'm trying to add 12 jobs, and I've got five spots left. We always have some number of jobs open, but right now it's about four times the usual." Ir?; '!":":::,.;/* "1* n ilLtr tacv04 < 1 k First-year student Hunter Lemke chose the machining program based on industry demand.He works for Craft Pattern&Mold.(Photo by Eliesa Johnson) Worker availability drives products Apple Valley-based Uponor has also benefited from a buoyant North American economy and the increased demand it's brought for the firm's radiant heating, cooling, plumbing, fire safety, sprinkler, and tube-related products. The strong economy, however, means that fewer desirable workers are available. "Our challenge has been to find talent in this market," says Bill Gray, Uponor North America president. "Across the board, access to skilled labor and an educated workforce is a problem." It's not the only problem Uponor is facing. "There's a trucker shortage, because people aren't entering that industry," Gray says, both because the lifestyle is unappealing and because, in a time when marijuana is legal in 34 states,there are fewer people who can pass the drug test that's part of getting a commercial driver's license. Freight rates are up 25 percent, Gray says, because truckers are in demand. Political uncertainty and recent tariffs on Chinese steel are also challenges, Gray says. "There's a lot of steel in the building industry, and a price increase can make or break a construction project. We see a lot of projects ... sitting on the sidelines, waiting for steel and aluminum prices to become more certain." http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 5/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b... Finding the right employees, however, is still the biggest problem, not just for Uponor, but for its longtime customers. "We're strictly manufacturers, but we also care about whether our customers have the skilled people they need to install and use products. The shortage has driven us toward polymer solutions, because they require less skill to install," he says. t " .� . ! tin. 3 ,' " rte' +Y� , -moi i\0. M+. C / , w v ',.4 1 :,1„ "- j'I'r ,irt Ae1 Jif jil_i i` ' —11 = r r 1 . E • y j t : •Y .is � w 111%041011010 {k * S t :fi- ♦ Cr.�M M •* € Art .t ,,,,,, . ' i , ' -1 4,:-.....,::,..,....,.. ,. ;, i ,,,,,, - - -4.-..,, -, , „, -. tit- ‘ n il — Workers at Graco Inc.in Rogers.Photo courtesy of Graco Inc. 25 go, 14 return If there's a shortage of manufacturing workers, it's logical to think that area technical colleges will step in and train more qualified people. Dunwoody starts 25 students in its two-year machine-tool program every fall. The Minneapolis-based school would love to increase the size of that cohort, says E. J. Daigle, Dunwoody dean of robotics and manufacturing, but he doesn't see enough interested students. "Manufacturing in general is still thought of as dirty, dark, and dangerous," Daigle says. High schools have eliminated or drastically reduced shop classes, so students aren't exposed to modern computer numeric control (CNC), a method for automating machine tool control by embedding software in a microcomputer attached to the tool. Even schools that still have shop programs typically find CNC equipment too expensive to install. i i Manufacturing in general is still thought of as dirty, dark, and dangerous" —fl. Daigle, Dunwoody College of Technology http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 6/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b.. Kids who want to make things have different ambitions, Daigle says. "The engineering design program, with its 3-D printing and computer-aided design [CAD] software, is bursting at the seams. It's full every year, because it looks like a sexy, state-of-the-art career." But not every manufacturing process involves CAD,welding, or 3-D printing, Daigle adds. Machining is manufacturing's common denominator. If he could get the students, Daigle says, he could place many more. "In 17 years at Dunwoody, I have never seen such a demand for machinists. Every company that comes out wants to hire machinists. At any given time, there are probably 1,500 open machining jobs around the state of Minnesota. Dunwoody will graduate 14 machine tool students in May 2019, and we have more than 400 requests to hire them," he says. In fact, most of the first-year students in the program are also hired, even though they have a year and a half of school left. "If companies don't hire them now,they won't get them," Daigle says. "They'll work part time until they graduate, and in the industry full time over the summer, and then on a flexible, part-time basis during their second year." i� p irlo ,_ ....---Nu,,, -,_,-i,-,4-;,,„ - i , F ; .a" .. 5 "rte". —. . y' yt rrcmv ,... • nr "" 4P c _ ' i+ ggg a , � k+g s : Workers at Graco Inc.in Rogers.Photo courtesy of Graco Inc. But often, good job offers prompt manufacturing students to quit school. "Some companies will say, 'You don't need to go back to school if you want to stay and work full time.' We start 24 or 25 machine tool students every year and get back 14 or 15 of them after the first summer. Two semesters of training can get you up to $27 an hour with full benefits. Five years ago it was $16 an hour. Now we don't entertain less than $22 an hour," Daigle says. http://tcbmag.com/news/articles/2019/march/who-wants-to-work-in-manufacturing 7/10 3/8/2019 Who Wants to Work in Manufacturing?-Not nearly enough people seek gigs in Minnesota's biggest private industry,and that's hindering b... In its search for more machine tool students, Dunwoody has recruited from North@Work, an organization designed to connect African-American men living in North Minneapolis to job opportunities. They've had mixed success, Daigle says. Women in Technology scholarships also help bring in students. The school has had some luck with recent immigrants. St. Paul College and Hennepin Technical College,which are both less expensive than Dunwoody, where tuition for a two-year associate's degree runs more than $44,000, have had "great experiences"with a larger number of Somali-American students, Daigle says. At Dunwoody, the student body is 80 percent white and male. Increasing student loan burdens for four-year degrees have the potential to drive more students toward two- year technical programs, and the U.S. unemployment rate won't be this low forever. Young people may eventually realize the potential that manufacturing jobs have to be both interesting and remunerative. Until then, however,the industry will go on playing an employment-based game of musical chairs. MANUFACTURING IN MINNESOTA: VITAL STATS $49.2 BILLION contributed from manufacturing in 2017 22%of all new jobs in the state in 2018 were in manufacturing $22 AN HOUR is typical starting pay for a manufacturing student after two semesters of training Sources:Enterprise Minnesota,Minnesota Department of Employment and Economic Development,Dunwoody College of Technology Ingrid Case writes about business issues and is a frequent TCB contributor. RELATED STORIES http://tcbmag.com/news/articles/2019/march/who-wa nts-to-work-in-ma n ufactu ring 8/10 Two-Way Street .ommunity ADAM KIENBERGER ANNE:JACKSON �� ' COMMUNITY DEVELOPMENT DIRECTOR CITY CLERK FARMINGTON(POPULATION 22,421) WINTON(POPULATION 165) j Farmington is a growing city in Dakota The year 2017 was extra special for the resi , County that has land available for green- dents of the City of Winton.Located on the 't'_ field development and a historic down- edge of the Boundary Waters Canoe Area,this 1 '' town primed for reinvestment.A major historic community had gone without a public challenge in preserving older areas of the city hall and meeting space for many years. ,.....4 .,, community is identifying funding for Finally,in 2017 all the planning came A. building preservation. together to build a new community center Community Development Block Grant(CDBG)dollars complete with a kitchen and office.Financing for the project play a key role in our preservation efforts.We use the CDBG was a combination of a loan and grants from the Iron Range program for commercial rehabilitation,senior programming, Resource and Rehabilitation Board and a Community Develop- and strategic planning initiatives. ment Block Grant(CDBG). The county's role pith the county Our strong partnership with the Dakota County Commu- The CDBG program is run by the U.S.Department of Hous- nity Development Agency(CDA)is also critical.The CDA ing and Urban Development(HUD).Funds are released to works with cities to provide CDBG funding via the U.S. and administered by our county's Planning and Development Department of Housing and Urban Development(HUD). Department.Earlier in the year,St.Louis County issued notices The CDA holds an annual training to help communities of pre-application meetings. understand CDBG requirements. County Senior Planner Steve Nelson helped Winton with the pre-application process.Nelson was assisted by Mike Vidmar, Projects using CDBG funds who visited the city and reviewed the project application for The city's Economic Development Authority(EDA)recently completeness.The final review is done by a volunteer citizen used CDBG funds to award a matching grant to a downtown panel,which decides the distribution of the grant funding based building owner to make improvements to their 1890 build- on the needs of the community. ing's failing roof.We worked closely with our building official Winton was awarded a$16,000 grant for safety and accessi- and CDA staff to certify project eligibility and compliance. bility improvements to the building project.The city used this The city also completed a downtown redevelopment plan grant for parking lot surfacing,curb stops,and an entrance that funded jointly with CDBG dollars.This plan led to an EDA is accessible to people with disabilities. companion program for downtown businesses making improvements that don't qualify for CDBG funds. Competitive,sometimes uncertain process CDBG grants are a valuable financial resource in packaging Lessons learned a project for your city.The grant process can be highly corn- Some key takeaways after working with the CDBG program petitive because there are always more requests than funding for almost 14 years include: available.Applications must show real need. Communicate with the experts.Work closely with your The grant is also subject to the federal government passing partners who work with HUD.Provide them reports to a HUD budget in a timely manner.Otherwise,there can be a show compliance. delay in the release of the grant funds.The Winton CDBG grant Learn how to "right-size"your projects based on the was delayed by about three months.Fortunately,the contractor amount of available funding.Not all preservation projects was willing to wait for the city's payment. are a good fit for CDBG due to federal wage requirements under the Davis-Bacon Wage Act,scope of work,or an inex- Funds result in community asset perienced contractor. We are very appreciative of the CDBG program.The new Phone a friend. Have a question on what has been success- Winton Community Center has become an asset to the entire ful or what problems you might run into?Use your network area.Not only is it used for Winton meetings,precinct polling, of peers to identify challenges early on before crafting a and the clerk's office,but it is also rented to others for weekly CDBG program or grant application. meetings and one-time events.L.,...4 MINNESOTA CITIES I MAR/APR 2019 I 7 2019 - 2021 iStrategicPlanent AuthortyicDevelopm iiton Economic > .S- ' ,," ""` " %a « b }"vA ., a'.k r 9 m „. .AvakKa .' AP: i. ':474- .' , • .y , .r ”A aI`, ___.-. ____4.-...., +". 8 . µ a: i 1 a January 2019 NORTHLAND '+e„r,'' 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 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 City City Council Development Residents Business Administrator 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 3 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 — a, 100.00 4- oc 80.00 IN:1: n�� F.- 60.00 40.00 20.00 a�� a�� �Cc • r&c �°\ •e" \' ' ' Oen ,��e � Q Q a�\ ego, .\�i ��, sz,era, co Ja ,e • ■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 III Apartments II 1,000,000,000 ,� ■ Residential Farmington Lakeville Rosemount Hastings Apple Valley Figure 2 Taxable Market Value Taxes Payable 2019 100% 90% � 80% III 70% III II 1111 U ■All Other 60% III U ■ ■ ■Agriculture 50% ■ ■ ■ ■ Industrial 40% ■ ■ 1111 ■ IICommercial 30% III El II. le Apartments 20% III III 1111 III ■ Residential 10% III III III 1111 0% Farmington Lakeville Rosemount Hastings Apple Valley Figure 3 January 2019 EDA Strategic Plan 2019-2021 ti • 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 1,500,000 co Q f0 X 1,000,000 H- 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 1 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. 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