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HomeMy WebLinkAbout03-28-19 MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting March 28, 2019 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:30 p.m. Members Present: Simmons, Butterfield, Cordes, Craig, Jolley Members Absent: Bernhjelm, Wilson Also Present: Adam Kienberger, Community Development Director; Teah Malecha, Finance 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 Jolley, second by Craig to approve the Consent Agenda as follows: a) Approved Meeting Minutes (February 28, 2019, Regular Meeting) b) Received Monthly Financial Statements APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) EDA Financial Review and Policy Discussion Finance Director Malecha explained the city council's priorities. One of the city council's priorities is to continue sound financial practices which includes implementing our 2030 financial plan, increase the bond rating to AA+and take the financial plan into consideration with all plans that are made. The city council wants to continue development for a successful future, support staff recommendations for the Fairhill plat and Sapphire Lake plat and support and communicate with businesses that purchased property in Vermillion River Crossings. The city council also wants to expand commercial/industrial opportunities, build on established partnerships and continue to work with the school district, support business partners including Dakota County Regional Chamber and the Farmington Business Association. Continue discussions on Dakota County regional issues and continue working with the townships. The EDA Minutes(Regular) March 28,2019 Page 2 city council wants to continue delivery of high quality services, review options for solid waste, update the city codes and review communication efforts. The city receives taxes and LGA which is used to support all the funds in the city. Finance Director Malecha presented the list of all the different funds in the city and the list of what is needed to fund and where the funding gaps are. The EDA started 2018 with $232,000 in cash. The operating costs,hotel feasibility study and comp plan update costs came out of that. Additional costs incurred in 2018 were the Dakota County broadband, Open to Business, and four façade grants. The EDA allocated$20,000 for façade grants and authorized $25,978. The EDA ended 2018 with $275,349. In the past there has been a transfer from the general fund to the EDA. Due to budget constraints,that was not possible in 2018. In 2019, $50,000 will be transferred to the EDA. Members asked several questions about the EDA expenses. For 2019, operational costs amount to $20,000; Dakota Broadband $24,000; Open to Business $5,513; Site Readiness program $20,000; Façade Improvement program $20,000; CDBG cashflow timing $50,000. That leaves $185,836 at the end of 2019. The EDA committed $100,000 towards the Rambling River Center Plaza and assessment relief of$35,000. So at the end of 2019 the EDA will have an estimate of$50,000 that is not committed for other purposes. Members discussed two pending projects,the Rambling River Center Plaza and the ice arena. Council is trying to determine which project to fund. Member Simmons noted the plaza project has been brought to the public and she has heard very little about the arena project. So since the public is aware of the plaza project, that is the one that should be funded. Member Craig stated the city council is trying to determine which one will best meet the needs of the community. Member Butterfield agreed with Member Simmons and asked if the EDA was being asked to commit funds to the arena project. That has not come up. Member Craig noted the arena project is more expensive and the plaza would be easier to do in three phases. Staff stated there are joint meetings scheduled with the city council and planning commission to make sure everyone is working together towards the same goal. Member Simmons recalled the EDA committed $50,000 towards the plaza project with the other$50,000 coming through sponsorships. Member Butterfield asked about assessments in Vermillion River Crossing. There are no additional assessments on any of the properties in VRC. Member Butterfield asked if the EDA should make plans for the $185,000 or the $150,000. That is up to the EDA members. Finance Director Malecha noted the only funds the EDA has coming in is the $30,000 general fund transfer. Members discussed putting the EDA Strategic Plan on the website. Members also recommended the city council's priorities be on the website. Member Butterfield summarized the EDA has committed funds to the façade grant program and to projects that will have a positive economic impact on the community. He asked which is a higher priority; should we commit more funds EDA Minutes(Regular) March 28,2019 Page 3 to the plaza or Highway 3 corridor projects or identify more programs for businesses. Member Craig stated until we are done with the Highway 3 corridor project it makes it hard to say so she would like to wait until that is finalized. Member Cordes agreed we should fulfill our current commitments before we commit to anything else. Member Simmons has noticed some programs are underutilized. We increased the amount for the facade program last year. She wants to preserve those dollars because anything that is visible, such as the façade programs or the CDBG dollars are important, but she would like to see progress on things we have committed to do. She would like to see progress with the other boards on making things tangible. People have been waiting for these projects, such as the plaza. Staff noted there will be a joint work session with the city council and planning commission on Highway 3 on April 8, 2019. After the Highway 3 plan is finalized, it will become clear as to where dollars will be used. b) Business Needs Assessment/BR&E Strategy At the last meeting it was discussed to get a better handle on the business needs of the community and a survey was discussed. Business Retention and Expansion (BR&E) focuses on two components—data and relationships. In the 2013 EDA Marketing Plan, it has some good tactics that rely on the relationship side. There are things such as regional surveys, localized general business surveys,targeted business surveys or face-to-face interviews. There is not always a high response rate to written surveys. Not everyone wants to sit down with someone from local government. Business owners are often more willing to sit down with other business owners. Staff proposed a multi-tiered approach. - More regular business needs information from economic development sources. - 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. - 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. Member Jolley explained the early morning gatherings that have started with the FBA. They are off to a good start and would like to have more people attend. There is no agenda,just communicating and getting to know each other. Member Craig noted most of the members work, so perhaps they should set a schedule for who can go to these meetings. Member Simmons would be more interested in thinking beyond informal networking to strategic outreach. When there is a new business, if they don't join the FBA, is there an opportunity to register as a new business with the city which would prompt an outreach from one of us and we could provide them with welcome information. Members agreed both avenues could be done. Member Simmons stated two things that come up are empowering business owners to take action with the information they have and also EDA Minutes(Regular) March 28,2019 Page 4 sustainability. We want to build a process for outreach so it doesn't rely on one person. Members agreed with using staff's multi-tiered dashboard. 9. DIRECTOR'S REPORT a) March Director's Report A joint meeting of the City Council, EDA and Planning Commission will be April 8, 2019, at 7:00 p.m. to review draft components of the Highway 3 Corridor Plan. Riste Lot Update—Staff has contacted Homestead Community Church. The EDA wanted to break even on the sale price of the Riste lot. The buyer does have a signed purchase agreement for the Exchange Bank building. Staff will meet with them next week to discuss architectural components before their closing. We are still working with them on the sale of the Riste lot. 10. ADJOURN MOTION by Cordes, second by Jolley to adjourn at 8:07 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cdwtl.11,a Muller Cynthia Muller Administrative Assistant