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Home My WebLink About09-19-19 CITY OF Meeting Location: FARMI NGTON Farmington City Hall t 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA September 19, 2019 6:30 PM 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 (August 22, 2019, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Downtown Facade Improvement Grant Program Application (b) Approve Downtown Facade Improvement Grant Program Funding Increase (c) Business Retention & Expansion Communications Strategy Update (d) City Council Update 9. DIRECTOR'S REPORT (a) September Director's Report 10. ADJOURN CITY OF 0430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 rry ® FarmingtonMN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (August 22, 2019, Regular Meeting) DATE: September 19, 2019 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the August 22, 2019, EDA meeting. ACTION REQUESTED Approve the August 22, 2019, EDA minutes. ATTACHMENTS: Type Description D Exhibit Meeting Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting August 22, 2019 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:30 p.m. Members Present: Simmons, Bernhjelm, Butterfield, Jolley, Wilson Members Absent: Cordes, Craig Also Present: Adam Kienberger, Community Development Director; Jeff Kerr, Homestead Community Church; Kara Hildreth, Dakota County Tribune 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Wilson, second by Bernhjelm to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Jolley, second by Bernhjelm to approve the Consent Agenda as follows: a) Approved Meeting Minutes (June 27, 2019, Regular Meeting) b) Received Monthly Financial Statements APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Approve Downtown Facade Improvement Grant Program Application— Homestead Community Church Pastor Jeff Kerr has applied for a facade grant for the Exchange Bank/Larson Building, 344 Third Street. Improvements include: - Repair and resurfacing of the Larson building exterior - Repair existing window frames - Spot tuckpointing The grant amount requested is $10,000. There are funds to cover this amount. The goal is to have the work completed by late November. EDA members were very pleased to see this investment in this building. MOTION by Butterfield, second by Bernhjelm, to approve the downtown Facade Improvement Grant application and contract for 344 Third Street. APIF, MOTION CARRIED. EDA Minutes(Regular) August 22,2019 Page 2 Member Jolley asked about the procedure of the grant process and if staff verifies the applicant's matching funds. Staff stated they do not need to provide proof because it is a one-to-one match. When they provide the invoice it shows the applicant has paid the full cost upfront and then we cut the check. So we are reimbursing them. Member Jolley was concerned about what we have agreed to and the community is expecting to see, could not be done if it turns out the applicant's funds are not available. She feels staff should verify the applicant has funds available before the grant is approved. Staff explained we are not obligated to pay any funds. The contract states the applicant needs to provide a bid that shows the amount and an invoice showing they have expended those funds. Chair Simmons noted from a business perspective an applicant wouldn't sign a contract with a contractor if you don't have the funds. That would not be good business. Staff noted we can never give out dollars that haven't been proven they have expended an equal amount. Member Jolley stated as a process, we should know their part is there before we commit our part; that they have the matching funds. Staff should know the funds are in place. Member Wilson appreciated that perspective, but this commission has been burned one time with a business that received grant money and then left town. If we were to adopt that approach, that would really change the positive direction of the city that we are easy to work with. He would feel very uncomfortable reviewing bank statements that a certain amount of dollars are available. If we know someone has paid something then we can expend the money. If they haven't,then they lost out on an opportunity. Member Jolley stated it doesn't have to be a review of financial statements. We tell them here is the grant money, show us proof of your funding. Chair Simmons stated our program design is showing proof of payment at the end right now. We are getting solid proof with a copy of an invoice showing payment made to a contractor before we pay money. We are covering that with our current program design to ensure our dollars are not paid before we receive written proof the project is paid. Staff noted our allotment of funds has been used up with this grant. The grant funding was $20,000 for this year. Last year it was increased to $25,000 because of the number of applications received. Members asked for an outline of funds for this program and for the EDA budget for the next meeting. Member Bernhjelm suggested having a submission timeline for grant applications. Staff will bring to the next meeting the EDA budget, including grant funding and ways to change the process. The last grant project was with Peerless Plastics and staff provided some before and after pictures. b) Business Retention and Expansion Strategy Update Staff reviewed business and expansion strategies. The city website contains a list of top 10 employers. Staff provided handouts with methods to determine the needs of local businesses. Chair Simmons noted the EDA had talked about categorizing Farmington businesses into small, medium and large as a way to EDA Minutes(Regular) August 22,2019 Page 3 identify their needs. Member Bernhjelm noted on the list of businesses provided by staff, she asked to eliminate those in the townships and expand it beyond the top 10. She would like the EDA to reach out individually to the businesses and make connections. A lot of them do not know who the EDA is or what we do and we need to build a relationship with them. Chair Simmons suggested doing targeted outreach to those that have opened in the last ten months. How do we learn about those poised for growth? Member Bernhjelm noted we see them at the ribbon cuttings and there is no connection after that. Member Jolley noted we used to do business visits and they were very successful. It allowed us to spread the news of the good things going on in Farmington. Business owners are proud that someone wanted to see what they are doing. They would take less than an hour. Member Wilson recalled the visits stopped because we ran into businesses not having time. Staff noted the business visits were part of our last strategic plan from five years ago. They are not prioritized in the latest version of the strategic plan. Chair Simmons recalled there was a concern about time commitment. No one has to commit any more time than they already have. You are a member of this committee and you signed on for one meeting a month. There is no pressure to do business visits. If you are interested, it can be up to what you are able to commit. Chair Simmons asked if there are members on other commissions that would be interested in partnering with us to do the visits, such as the Planning Commission. Member Bernhjelm suggested starting small and pick one business a month and whoever can come can come. There should always be a representative of the city there in addition to an EDA member. Prior to the visit, she would want some history or knowledge of their business; what have they partnered with us on in the past; what have they sponsored with us; does staff already know about their engagement with the city. From there you can tailor the conversation more about how can we work better together, strategize on what they are trying to offer the city; what does the business want out of that; are there programs the city can bring to you. The visit has to be customized. Chair Simmons agreed with starting small, evaluate, see how it goes. Member Bernhjelm suggested doing a couple visits this fall. Staff suggested recommending the businesses to reach out to as we have engagements with many of the businesses currently. We should determine what we want to get out of it; is it relationship, data, metrics. He is hearing more relationship rather than data. As far as logistics, we have to work around the business,then select members that are available for that time slot. Members suggested staff pick out a business for September and October and start with just the EDA. Member Bernhjelm suggested having a sheet to tell them what the EDA is working on and what the City Council is working on. Member Jolley suggested after doing a visit, maybe we can put a little article about it on our website with the owner's permission. Chair Simmons suggested developing a process for this. She would be interested in doing two visits a month; one from a current partnership and one that has opened in the last 12 months. Staff cautioned on the logistics and the amount of time it takes to set meetings and the coordination. Member Wilson suggested staff take back our comments and discuss this at the next meeting. Staff heard a desire to establish a business case and set up a timeframe for what the EDA Minutes(Regular) August 22,2019 Page 4 deliverables, outcomes and mutual benefits are expected to be of this process. From there look at one or two of what we can get and tailor the targets for who we are trying to hit in a given month. He will bring this back to the meeting next month and will reach out to a business or we can identify businesses at our next meeting. Staff could select a business from the list without discussing it at a meeting. Chair Simmons trusted staff to choose a business, but she feels less confident talking to a business versus someone from the city that does that every week. She doesn't want to do this just to check a box; she wants it to be meaningful. Staff will bring a structure to the next meeting and at the same time select a few businesses for the end of September or October. Talking points can be determined at the next meeting and who can go. Member Butterfield suggested the business not be consumer facing because you know what they do. He suggested industrial or more unknown where we can try to get feedback as to how they are doing. c) TH3 Corridor Plan Implementation Update The TH3 Corridor Plan was adopted by the City Council on June 3, 2019. Staff is working on implementation steps. This fall, with the adoption of the 2040 comp plan,we are looking at rezoning ordinance amendments and technical components. d) Economic Development Activities/Events in Farmington Chair Simmons wanted members to start thinking about unique events for Farmington. Member Wilson had brought up the Eagan food truck festival. She asked if there are things other members have attended that might be a good idea. Member Bernhj elm stated the City Council has talked about not reinventing the wheel, but capitalizing on things that are already going on. She suggested between now and the end of the year,put together a calendar of what does drive traffic down here; such as the fair, Dew Days, small business day, Ramble Jam. Look at that calendar next year and see how as a group we can enhance that and help drive traffic further. Member Bernhjelm asked if staff could pull that calendar together. Member Jolley suggested the EDA have their own table at the Expo. Maybe hand out a calendar as to when things are going on. Chair Simmons has heard of a ladies night in downtown in other cities. We will have the Main Street Day Spa,they had chiropractors doing massages, etc. You had a passport and would get it stamped and at the end of the night there was a drawing. It was sponsored by a business association. Member Bernhjelm suggested taking ideas to the FBA and perhaps the EDA can support it. Staff suggested having the city's communication staff come to an EDA meeting to talk about the different ways to do this and events and how they are being promoted. e) City Council Update Member Bernhjelm distributed a handout. She started with a high level of the City Council's 2020 priorities. This is what the council uses to determine if a project meets their priorities. There are many projects going on. One priority was better communication. Last month was the first Coffee with the Council and only EDA Minutes(Regular) August 22,2019 Page 5 a couple people showed up. The council met with the liquor store committee and decided for September two councilmembers will be stationed at the Pilot Knob liquor store for a couple hours on September 26 and take the opportunity to tell people how the money goes back into the community. The council is working on the 2020 budget. Right now there is not a plan to increase the tax levy. Debt is going down drastically which helps prevent that increase. A new position proposed for 2020 is the Deputy Police Chief. Council and staff have been working on a major projects list and how much they will cost. The next step is how to check these off and assign a year to do them. Member Bernhjelm reviewed the list. Member Butterfield suggested the EDA review the list and determine what the EDA can participate in to support the project. Member Bernhjelm explained how a large business needs to fit with a project in order for them to contribute. Chair Simmons suggested that discussion could be part of the business visits. 9. DIRECTOR'S REPORT a) August Director's Report The joint City Council/ School Board meeting was July 15. Community Development Director Kienberger presented his department's annual report and development update at that meeting. Staff asked about rescheduling the September 26 meeting as there are a couple other events going on that evening. It was determined to move the meeting to September 19, 2019. 10. ADJOURN MOTION by Jolley, second by Bernhjelm to adjourn at 8:20 p.m. APIF, MOTION CARRIED. Respectfully submitted, C�wtl��a MvLLer Cynthia Muller Administrative Assistant CITY OF O430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 OFarmingtonMN,gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: September 19, 2019 INTRODUCTION/DISCUSSION Please find the monthly financial statements of the EDA attached. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit EDA-Actual Vs Budgeted Rev and Exp-September ❑ Exhibit Financial Snapshot- September _O O r O r e ..0TN- N SNO e- N O CO O O CO CO O 0 r CO r 6) (b N- N- CO O CO U CO O CO C) co D Q) e- 0 0 0 a N (0 of N N. It) vO v O e- r. t- J NCO CA � CO N 1 O ODF7 . �. �m � v . a) V C ZT 0 y i d C.) 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O z O 'V' O M CO CV N 0 0 0 0 0 0 CO CO 10 r ^ CO Co O CO j s0 C(1 N- CO CO N M CSO e- .. CO v C,' N C UO e... et d' M. O Q N CO CO I-1-1Z W U 0 to W Z 2 F COZ as W O 0 wX 0 O] CO Z 0U) m >_ w m c Cn m0d p ZZ 0 U z Z d 7o U. o r E N 0 w IA U a a 06 iT Z w 23. O N C Q E .c 0 _ 'w J p U Z CW7 O 3 ._ LLEli U) 0) Z LijQ.LL W U > E m re d _ H Lu z O u) F 2 Q O LL m W m a) it m 01 d y tl CO V N CO O O O (n N O O .Z o C C o . cN 0 O O O N N CO CO ti CO O CO r co CO g F- co co co (`o co` coo coo co` coo co co`nco` u) I- i-- F`- O Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Unit Account Description Actual Budget 2019 2019 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH 253,475.91 2000-HRA/ECONOMIC DEVELOPMENT 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPMENT 3510 UNRESERVED FUND BALANCE -299,361.64 2000-HRA/ECONOMIC DEVELOPMENT 4955 INTEREST ON INVESTMENTS -3,910.70 -2,300.00 2000-HRA/ECONOMIC DEVELOPMENT 5205 OPERATING TRANSFERS -33,333.28 -50,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6401 PROFESSIONAL SERVICES 1,190.00 11,680.00 2000-HRA/ECONOMIC DEVELOPMENT 6403 LEGAL 719.40 4,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6404 IT SERVICES 5,544.64 8,317.00 2000-HRA/ECONOMIC DEVELOPMENT 6422 ELECTRIC 130.49 300.00 2000-HRA/ECONOMIC DEVELOPMENT 6426 INSURANCE 95.12 130.00 2000-HRA/ECONOMIC DEVELOPMENT 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPMENT 6460 MEMBER DUES&LICENSURE 1,720.00 2,500.00 2000-HRA/ECONOMIC DEVELOPMENT 6470 TRAINING&SUBSISTANCE 1,945.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6485 MILEAGE REIMBURSEMENT 265.06 1,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6492 ADVERTISING 0.00 3,000.00 2000-HRA/ECONOMIC DEVELOPMENT 6550 DEVELOPER PAYMENTS 9,500.00 2000-HRA/ECONOMIC DEVELOPMENT 6570 PROGRAMMING EXPENSE 25,120.00 17,000.00 2000-HRA/ECONOMIC DEVELOPMENT 7310 OPERATING TRANSFERS 1,900.00 2,850.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 1,977.00 0.00 1,977.00 0.00 1,977.00 9/16/2019 11:42:00 AM Page 1 of 1 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Downtown Facade Improvement Grant Program Application DATE: September 19, 2019 INTRODUCTION/DISCUSSION Attached is an application requesting$20,722 from Pam Heikkila of Heikkila Studios for her building located at 345 3rd Street. This building, known as the Fletcher Building built in 1877, was designated a Heritage Landmark by the City Council in 2001 via the Heritage Preservation Commission. City Code 2-11-4 outlines the process for Heritage Landmark designation: 2-11-4:DESIGNATION OF FARMINGTON HERITAGE LANDMARKS: (A) Eligibility Criteria:The following criteria shall guide the HP C and the City Council in evaluating properties for designation as Farmington heritage landmarks: 1. The quality of significance in history, architecture, archaeology, and culture is present in buildings, sites, structures, objects and districts that possess integrity of location, design, setting, materials, workmanship, feeling, and association, and: (a) That are associated with specific events or a pattern of events that have made a significant contribution to the broad patterns of our history; or (b) That are associated with the lives of persons or groups significant in our past; or (c) That embody the distinctive characteristics of a type, period, or method of construction, or that represent the work of a master builder, or that possess high artistic values, or that represent a significant and distinguishable entity those components may lack individual distinction; or (d) That have yielded, or may be likely to yield, information important in prehistory or history. 2. The singular physical appearance, historic character or aesthetic value of an established or familiar feature of a neighborhood or community within the city. (B)Findings Of Significance:The HPC shall determine if a historic property is eligible for designation as a Farmington heritage landmark and issue a written finding of significance. (C) Council Designation, Hearings: The city council, upon recommendation of the HPC, may by resolution designate a Farmington heritage landmark. Prior to such designation, the city council shall hold a public hearing, notice of which shall have been published in the official newspaper at least ten(10)days prior to the date of the hearing and mailed notice sent to the owner(s) of the property which is proposed to be designated a heritage landmark and to all owners of property lying adjacent to the historic property. (D) Communication With The Minnesota Historical Society:Prior to designating a Farmington heritage landmark, the city shall forward information concerning the proposed designation to the Minnesota Historical Society for review and comment in accordance with Minnesota Statutes Annotated section 471.193. (E)Designation Of Heritage Landmarks On The Zoning Map: The city shall place designated Farmington heritage landmark properties on the official city zoning map. (Ord. 099-422, 2-16-1999) Ms. Heikkila is requesting a grant to assist with improvements being planned for the building. These proposed improvements include: • Replacing missing bricks, brick repair and tuckpointing with restorative work on various deteriorated areas on both the Oak Street and Third Street sides of the building base- $8,000 • Put new stucco on two brick walls—the north wall along the walkway between the buildings and the upper back side which faces the parking lot- $31,725 • Install sheet metal flashing at the roof base- $1,720 The total project cost is estimated to be$41,445 including the grant request of$20,722. This amount exceeds the allowed grant amount and exceeds the current fund balance of$500. Any work done on Heritage Landmark properties is required to follow city code 2-11-5 and 6: 2-11-5:DESIGN REVIEW: (A) Review Of Permits: The HP C shall review and make recommendations to the city council concerning the issuance of city permits to do any of the following in relation to a property designated as a Farmington heritage landmark: 1. Demolition of a historic building or structure. 2. Moving a historic building, structure, or object. 3. New construction of a principal building or accessory structure. (B)Alterations: The HPC shall determine whether the proposed activity will alter, disturb, deface or materially change the appearance or use of a heritage landmark. The HP C may recommend to the city council conditions for permit approval that it deems reasonable and appropriate. (C) Certificate Of Appropriateness:No permit will be issued by the city unless a certificate of appropriateness has been granted by the HPC. A copy of the certificate of appropriateness shall be attached to the permit when issued, and a copy filed with the city building official. A certificate of appropriateness shall become void twenty four(24)months after issuance unless a city permit has been issued. (D)Development Projects:Every application for a preliminary or final plat, variance or conditional use permit in relation to a significant historic property in the city shall be reviewed by the HPC and their recommendation shall be forwarded to the planning commission for consideration in making their recommendation to the city council. In determining whether or not a project will have an adverse effect upon a significant historic property, the HPC shall consider the following factors: 1. Whether the development will substantially alter the appearance of a historic building, site, structure, object or district so as to remove the features which distinguish the historic property as a heritage landmark; and 2. Whether the use of the property will destroy, disturb or endanger a known or suspected archaeological feature. (E) Design Review Standards And Guidelines: The secretary of the interior's standards for the treatment of historic properties shall be the required basis for permit review decisions. The city may adopt design review guidelines; in the absence of such guidelines, design review decisions will be based upon the current secretary of the interior guidelines for preservation, rehabilitation, restoration and reconstruction. (F) Outside Technical Advice: The HPC may seek technical advice from outside its members on any design review. (G)Appeals:Any party aggrieved by a decision of the HPC shall, within ten(10) days of the HP C's action approving or denying a certificate of appropriateness, have a right to appeal such decision to the city council. When denying a certificate of appropriateness, the HPC shall advise the permit applicant of their right to file a written notice with the city administrator requesting city council review of the action taken by the HPC. Upon receipt of the notice of appeal, the city administrator shall transmit one copy to the HPC. (Ord. 099-422, 2-16-1999) 2-11-6:VIOLATIONS AND PENALTY: It shall be a misdemeanor to alter, disturb, deface or materially change the appearance or use of a designated Farmington heritage landmark without a certificate of appropriateness. (Ord. 099-422, 2-16-1999) The Secretary of Interiors Standards for masonry work is attached for your review. If the work does not meet these standards (applying stucco over bricks), then a Certificate of Appropriateness cannot be issued which is required to obtain a building permit. It would not be advised to award a grant without the Certificate of Appropriateness. The applicant is advised to do the following: 1. Outline a project scope which adheres to city code 2-11-5. 2. Petition the Heritage Preservation Commission(powers and duties assigned to the Planning Commission) for a Certificate of Appropriateness per code 2-11-5. A Certificate of Appropriateness is required to obtain a building permit for any siding work/repair.. 3. Once the Certificate of Appropriateness has been obtained, then submit the Downtown Façade Improvement Grant application for EDA review. ACTION REQUESTED Continue this application to a future meeting. ATTACHMENTS: Type Description D Exhibit Grant Application Downtown Façade Improvement Program FARM I NCTCJN Grant Application -_ .:._ r-:m APPLICANT INFORMATION NAME OF APPLICANT(S) BUILDING OWNER TENANT 4n yes kk;la. �f ADDRESS r ADDRESS 3 - S CITY, STATE,ZIP CITY, STATE,ZIP MN SSCI2'! PHONE PHONE EMAIL EMAIL BUSINESS INFORMATION LEGAL NAME OF BUSINESS He;;014 Ary44-"ea. LL's ADDRESS , 95 �� "'�� CITY, STATE,ZIP Ft--:Mon � it4 N1 SSD 9 BUSINESS PHONE FEDERAL TAX ID# DATE ESTABLISHED M y 2 � 2 00'1 OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE: NAME Qqm tie;Ukti4 INTEREST 06./It tie NAME INTEREST NAME INTEREST 5 PROPERTY INFORMATION ESTIMATED DATE OF BUILDING CONSTRUCTION 14 II 241 HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? AO PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: Mascot), kmvik1111111111111111111111111 : t ESTIMATED PROJECT COSTS EXTERIOR/FACADE ESTIMATED COST 'Y. 4/4/-:5- ELECTRICAL ' '_ELECTRICAL ESTIMATED COST No",L TOTAL ESTIMATED COST 'rYVYf 6 FUNDING INFORMATION A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Downtown Facade Improvement Program,the applicant must contribute at least one dollar.The amount of grant to be awarded shall be$1,500 up to$10,000 according to the scale. - TOTAL GRANT AMOUNT REQUESTED$ GPU, ?..R°? ($1,500 up to$10,000 according to the scale) yo,00 41A 01" APPLICANT FUNDS o, "a 3 &'(‘I fAI I/We declare that the information provided on this application and the accompanying attachments is true and complete to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification and that the city of Farmington/EDA has the right to verify this information. I/We agree to provide the project coordinator reasonable access to information and reasonable access to the construction project site so that they may monitor project implementation. APPLIC /Apr 0Alr 11Soir -. DATE / c2 DATE DATE 7 MINNESOTA DATA PRACTICES ACT—TENNESSEN WARNING In accordance with the State of Minnesota Government Data Practices Act,the city of Farmington is required to inform you of your rights as they pertain to the confidential information collected from you. Confidential data is that information which is not available to you or the public. The personal information we collect about you is private, The information collected from you and from other agencies or individuals is used to determine the disposition of your application with the city. The dissemination and use of the data collected is limited to that necessary for the administration and management of the Downtown Façade Improvement Program. Persons or agencies with whom this information may be shared,include: 1. City of Farmington personnel administering the grant program 2. City Council members,Economic Development Authority members 3. Contracted private auditors 4. Law enforcement personnel 5. Those individuals or agencies to whom you give your express written permission NOTICE PURSUANT TO MS.60A.955 I << ^ � r� I�,. /, , T/1 1 • BID 2019: ` CONSTRUCTION 3 �x MASONRY 952-201-8594 AND EXTERIOR FACADE WORK PROJECT: Fletcher Building 349 Third Street, Farmington, MN 55024 651-460-8350 QUOTE: $8,000 Masonry work replacing missing bricks,brick repair,and tuckpointing. Resorative work on various deteriorated areas both on the Oak street and Third street sides of the building base. All work to create a similar look to existing facility. Available for completion prior to November 15,2019. 15831 HIGHLAND POINT COURT ' APPLE VALLEY, MN 55124 mrgdu4@aol.com SMITH COLE MN LIC#BC-693563 STUCCO STONE CONTRACT Proposal Submitted to: Phone: Date: Pam Heikklla 651.460.8359 09.06.2019 Address: Job Name: 349 3rd St. New Stucco on 2 Brick Walls of Building&Chimney City,State And Zip Code: Job Location: Farmington,MN,55024 Same Estimated Project Start: Estimated Project Completion: ASAP ASAP We propose to perform the following: New Stucco on 2 Brick Walls on Building&Chimney: o Mobilize, Erect Scaffolding as required,Protect adjacent materials, Pull required Permits o NOTE:Owner will have Roof Flashing Adjusted &All Electrical Piping&Gutter/Downspouts Removed and Reinstalled by Others o Prep&Remove all Loose Debris of Brick Walls o Install Casing Bead at Outside Corners on Left&Upper Back Walls of Building for Stucco Termination o Install Casing Bead at Existing Stair Case&Around Existing AC Unit o Install Weep Screed at Foundation&Existing Roof Flashing Per Code o Apply Galvanized Metal Lath to Left&Upper Back Brick Walls Only o Apply New Portland Cement Base Coat to all Lathed areas Only o Apply New Acrylic Trowel Texture Finish Coat to all New Stucco Surfaces Only o Color and Texture Approved by Owner o Conduct thorough cleanup,close out Permits and exit site For the Sum of: $31,725.00 Payment Terms: $10,575.00 at Contact Signing-Progress Billings-Balance at Completion Work Excluded: Any Painting/Staining Interior or Exterior,Any Landscaping,Any Interior Work,Any Windows or Door Work,Any Framing,Any Roof Work,Any Structural Work,Any Caulking,Any Heat&Cover,Any Decorative Stucco Trim Work,Any Brick Repairs,Any Gutter/Downspout Work,Any Electrical Lines/Piping Work,Any Stair Case Work NOTICE OF LIEN IN THE STATE OF MINNESOTA (SEE REVERSE SIDE) For: Smith Cole Stucco&Stone: For: Owner: Check No: "Building The Future—Restoring The Past" 4443 Hiawatha Ave, Minneapolis, MN 55406 612.709.4980 Rosenquist Construction Inc. 2514 24th Avenue South - Minneapolis, Mn. 55406 Phone: 612-724-1356 - Fax: 612-724-0511 August 29,2019 Project: Fletcher Building,345 3`d Street,Farmington,MN 55024 Heikkila Properties LLC 345 3rd St. Farmington,MN 55024 RE; Quote ATTN: Pam Heikkila PROJECT: Fletcher Building 1. Furnish and install Sheet Metal flashing at roof base flashing at alley and adjacent roof, 2. Furnish and install Sheet Metal flashing at the top of coping flashing. For the sum of ----- $ 1720.00 Exclude: permits PLEASE FEEL FREE TO CONTACT ME WITH ANY QUESTION YOU MAY HAVE. Respectfully Greg Reiser Fletcher Building 1877 ., .. ... , ( i . ... , ,,..„...., . . , . 4 . ,.. , . . ..„... . ., , ..,,,, ,,.. . e, «..‘ ..+ 1 4"70 ' '4 00. ) 'I- " A„* 1 h. V . a *t Z':•"'11.::•:1 ' ' ' ! 4 ' .:,,..•j ...;sr, ' ir-4144ef' 4 '' 1 ! ., ,.,%.?. • ' ''''"" '''i, ' . I .:4' -',1:" Itt.'st,t'„I''t; : ',,', •,,‘,„,;,4 it vlfl '.-"-^- ' • ' (,:‘,41' '' -:1:..(1! i ''.0:1','40- ' '.114 1:, ,„,... ii: -::•11 ..... ' ...+."' , ,t.(,„,:, ,i 1::: :, '' ? -I ili..:," .ti 1 1 ,... ,.'‘ 1 4'4, ,,,, .4 i - 371:4 4... , i ,44 e-itli ,: - 4 Tin': 1 , 1 , A 1 ' i 1 . , „., ..1 , 4.,e.„..r.,..1. '1,, ( 4 ' 1 .'''4 It , . ,I IL......,,w,..:- . I Li # . . ,. , i . , 4,... 1,.., . lo, ., .It - , ; ' •tej‘+‘ h 4,' ' • el . t *. 4 ., A , 4,: 44: 1 , ,4 ... . " • i ', • I ‘ , ,,,,,i ,,, 4N„ ..... A i 4'41* f i 1114figt°C-Z1i4 1 . ' ' .0•01. ,s s I . . - s _ ._ .. Farmington's Oldest Commercial Building Purpose: To help the economic development of Farmington's historic district via a grant towards the restoration of the Fletcher Building of Farmington. • • , 1 The downtown is scattered with seemingly empty buildings waiting for , occupancy. But,the Fletcher building has been attacting clients from '; ' , other cities for 15 years. The studio was once selected as one of the ,,Ap.,..4", top 20"go-to"photographers in the state by"The Knot', a nation-wide wedding magazine. an I . , ! 4 11 tit t ,i it:'. .,_ . . w . ,' +!w tl' - VIlk . i. .r a�� .....:.... �,.. It needs help to look like this! 10 years ago,it was in good condition. However,we did not realize just how soft the bricks were. The paint started peeling a few years ago. It was unnoticed at first. But,the problem avalanced. 2014 "•, ' 1. Nem s N., f I i ' '. 41 I i 1I {ii The structural integrity weakened, seemingly overnight, Brick chips started crumbling onto the ground and caught our attention. Soon,larger pieces of brick began falling on the building behind. Large portions of the base of the building separated from the existing brick located on the Oak street side leaving gaping holes. A partial masonry job was started,but was unable to be completed. This also left open holes in the side of the building. This past spring,realizing that the bleeding needed to stop,I contacted approximately 8 different masonry companies. The bids ranged from $129,000 for minimal repair and over$300,000 for more extensive repair. Obviously,to any owner,these prices are not a good investment. Even if money was flush,you would never get a return on that kind of price tag....even at 1/2 that price. The building itself was recently appraised at$305,000. That is if you could find a buyer. If you look at all the buildings in town for sale, well,it is not an easy great market from a business perspective. Where does that leave us as a town? . 4 ' A z *L*. r ®. • + acv .* ` a1� •.a .} eh, -A a *..&. 11 ., . , • 4 . 34 , •, ....A - , . • , r . .. s y 1 jM .. y - Stopping the Bleeding r4 Masonry Prep Work $8,000 Stucco $31,725 Roofing (to be lifted to accomodate for stucco) $1,720 Total : $41,445 • MASONRY: 24 inch gaps separate from the base of the building where rain runs down the side of the structure and deteriorates the stone/brick walls below. Knowing the rapid damage last winter caused, the structural integrity will likely be compromised over the course of this winter. • ROOFING: They need to pull the roof up to put the stucco up to the top. Recreate a metal flashing system that will go out and over the stucco. • STUCCO: PLEASE SEE BID ATTACHED FOR BRICKWORK BY A LOCAL FARMINGTON COMPANY. THIS WILL SHOW YOU JUST HOW AFFORDABLE STUCCO IS TO HAVE INSTALLED. Stucco is the most cost effective way to preserve the building. This company is able to get it done this year (however it may go well in November and need heat added). EIGHT MASONRY AND OTHER STUCCO COMPANYS HAVE COME, BUT FLATLY TURNED ME DOWN TO COMPLETE THE WORK THIS YEAR. WITH THE FREEZE/THAWS THAT HAPPEN OVER THE WINTER IT IS EXTREMELY TIME SENSITIVE. The Secretary of the Interior's Standards for Rehabilitation& Illustrated Guidelines for R... Page 1 of 7 Technical Presery• -• r = - - Brick, Stone, Terra Cotta, Concrete, Adobe, Stucco and Mortar Building Exterior Mason . ;',:; Identify I Protect I Repair I Replace I Missing Feature I Alterations/Additions Standards Culdellnas S i 1 y MCA The longevity and •'� 'e �"' N J X 'i Masonry g Y roily tr +, , M;�dr .,t t 'Mt appearance of a masonry [! Wood wall is dependent upon the –a • i Metals size of the individual units -_ Roofs and the mortar. ► r�. , , Windows EntranceslPorches Stone is one of the more Storefronts lasting of masonry building • / �a materials and has been used Structural Systems throughout the history of Spaces!FeaiuresWFlnishes Mechanical Systems American building 1880s brick building with terra-cotta trim. construction. The kinds of stone most commonly encountered on historic Site buildings in the U.S. include various types of sandstone, limestone, marble, Setting granite, slate and fieldstone. Brick varied considerably in size and quality. Energy Before 1870, brick clays were pressed into molds and were often unevenly New Additions fired.The quality of brick depended on the type of clay available and the brick- Accesslbility making techniques; by the 1870s--with the perfection of an extrusion process-- HealthlSafety bricks became more uniform and durable. Terra cotta is also a kiln-dried clay product popular from the late 19th century until the 1930s. The development of the steel-frame office buildings in the early 20th century contributed to the widespread use of architectural terra cotta.Adobe,which consists of sun-dried earthen bricks,was one of the earliest permanent building materials used in the U.S., primarily in the Southwest where it is still popular. Mortar is used to bond together masonry units. Historic mortar was generally quite soft, consisting primarily of lime and sand with other additives. After 1880, portland cement was usually added resulting in a more rigid and non-absorbing mortar. Like historic mortar, early stucco coatings were also heavily lime- based, increasing in hardness with the addition of portland cement in the late 19th century. Concrete has a long history, being variously made of tabby, volcanic ash and, later, of natural hydraulic cements, before the introduction of portland cement in the 1870s. Since then, concrete has also been used in its precast form. While masonry is among the most durable of historic building materials, it is also very susceptible to damage by improper maintenance or repair techniques and harsh or abrasive cleaning methods. Masonry ....Identify, retain, and preserve recommended Identifying, retaining,and preserving masonry features that are important in defining the overall historic character of the building such as walls, brackets, https://www.nps.gov/tps/standards/rehabilitation/rehab/masonry01.htm 9/12/2019 The Secretary of the Interior's Standards for Rehabilitation&Illustrated Guidelines for R... Page 2 of 7 -'_' _-,railings, cornices,window architraves, _ ' - door pediments,steps, and columns; , .i� 7,....:{P-,','",„7,`_ `"621VW d 4"'3 and details such as tooling and 3tt, r. -^-- =1 T , bonding patterns,coatings,and color. ` :4, ..14 n ,rt- i- f,a f•4:37 i '1 Materials and craftsmanship illustrated in stone wall. not recommended Removing or radically changing masonry features which are important in defining the overall historic character of the building so that, as a result, the character is diminished. Replacing or rebuilding a major portion of exterior masonry walls that could be repaired so that, as a result, the building is no longer historic and is essentially new construction. Applying paint or other coatings such as stucco to masonry that has been historically unpainted or uncoated to create a new appearance. Removing paint from historically painted masonry. Radically changing the type of paint or coating or its color. Masonry ....Protect and Maintain Ilk recommended nr Protecting and maintaining masonry by � providing proper drainage so that water does not stand on flat, horizontal j surfaces or accumulate in curved _l decorative features. 1 Cleaning masonry only when necessary to halt deterioration or remove heavy al • soiling. Carrying out masonry surface cleaning k; f'ar', . i tests after it has been determined that N. such cleaning is appropriate.Tests It • "'• ` should be observed over a sufficient period of time so that both the immediate ....tw ....i ' and the long range effects are known to --,. .- a enable selection of the gentlest method ` possible. Chemical cleaning to remove dirt from granite. https://www.nps.gov/tps/standards/rehabilitation/rehab/masonry01.htm 9/12/2019 The Secretary of the Interior's Standards for Rehabilitation &Illustrated Guidelines for R... Page 3 of 7 ,1 ,A1',,,,,�r Cleaning masonry surfaces with the gentlest lra t y .,, ' , method possible,such as low pressure water and } - , q: ' ,i ,‘ i , detergents, using natural bristle brushes. r,• ,�:'£ ;4' Inspecting painted masonry surfaces to 4 , ' ' • �� determine whether repainting is necessary. � '`r r i ; Removing damaged or deteriorated paint only to ,; ',* the next sound layer using the gentlest method is 1 , , possible(e.g., handscraping) prior to repainting. )k.. ..,-.•0*',, Applying compatible paint coating systems following proper surface preparation. Repainting with colors that are historically ,"=. appropriate to the building and district. Evaluating the overall condition of the masonry to r ' determine whether more than protection and '•' maintenance are required,that is, if repairs to the ' masonry features will be necessary. Removing felt-tipped marker graffiti with poultice. not recommended �_-- Failing to evaluate and treat the various causes of mortar joint deterioration such as leaking roofs or gutters, differential settlement of the building, capillary action, or extreme weather exposure. Cleaning masonry surfaces when they are not heavily soiled to create a new appearance, thus needlessly introducing chemicals or moisture into historic materials. Cleaning masonry surfaces without testing or without sufficient time for the testing results to be of value. Sandblasting brick or stone surfaces using dryor wet grit or other �-- abrasives. These methods of cleaning . =w permanently erode the surface of the - ,.:' material and accelerate deterioration. Using a cleaning method that involves 4 �-- - - • water or liquid chemical solutions w,,,y when there is any possibility of 7.--- 3- - - --, . . freezing temperatures. Historic brick damaged by Sandblasting. Cleaning with chemical products that will damage masonry, such as using acid on limestone or marble, or leaving chemicals on masonry surfaces. Applying high pressure water cleaning methods that will damage historic masonry and the mortar joints. https://www.nps.gov/tps/standards/rehabilitation/rehab/masonry01.htm 9/12/2019 The Secretary of the Interior's Standards for Rehabilitation&Illustrated Guidelines for R... Page 4 of 7 Removing paint that is firmly adhering to, and thus protecting, masonry surfaces. Using methods of removing paint which are destructive to masonry, such as sandblasting, application of caustic solutions, or high pressure waterblasting. Failing to follow manufacturers'product and application instructions when repainting masonry. Using new paint colors that are inappropriate to the historic building and district. Failing to undertake adequate measures to assure the protection of masonry features. Masonry ....Repair recommended Repairing masonry walls and other masonry features by repointing the mortar joints where there is evidence of deterioration such as disintegrating mortar,cracks in mortar joints, loose bricks, damp walls, or damaged plasterwork. Removing deteriorated mortar by - - carefully hand-raking the joints to avoid damaging the masonry. Duplicating old mortar in strength, composition, color, and texture. t Duplicating old mortar joints in width and in joint profile. 114 Repairing stucco by removing the damaged material and patching with g ' ` new stucco that duplicates the old in . strength, composition,color,and texture. Using mud plaster as a surface .. coating over unfired, unstabilized � ' adobe because the mud plaster will bond to the adobe. • - Cutting damaged concrete back to Preparation for stucco repair. remove the source of deterioration (often corrosion on metal reinforcement bars).The new patch must be applied carefully so it will bond satisfactorily with, and match,the historic concrete. Repairing masonry features by patching, piecing-in, or consolidating the masonry using recognized preservation methods. Repair may also include the limited replacement in kind--or with compatible substitute material--of those extensively deteriorated or missing parts of masonry features when there are surviving https://www.nps.gov/tps/standards/rehabilitation/rehab/masonry01.htm 9/12/2019 The Secretary of the Interior's Standards for Rehabilitation&Illustrated Guidelines for R... Page 5 of 7 • einu--imminprototypes such as terra-cotta brackets or stone balusters. .- Applying + new or non-historic surface treatments such as water-repellent coatings to masonry �,_k 'a ` e , only after repointing and only if masonry repairs Y1 -- `.: have failed to arrest water penetration problems. - 31 Replacement stones tooled to match original. not _-3 recommended .�.._.._. Removing nondeteriorated mortar from sound joints, then repointing the entire building to achieve a uniform appearance. Using electric saws and hammers rather than hand tools to remove deteriorated mortar from joints prior to repointing. i ,. Repointing with mortar of high portland — .i l . cement content(unless it is the content of the historic mortar). This can often - _ * create a bond that is stronger than the ,,,,---,..,1-.1 historic material and can cause damage ` ` ' - p-,- as a result of the differing coefficient of I ...�- .� 1 ; I expansion and the differing porosity of f' i , I - 1 ' 3. the material and the mortar. �...a'" _ -44"2'" Repointing with a synthetic caulking i 4 compound. rilil , a ( - 4`' $ i' Using a"scrub"coating technique to trepoint instead of traditional repointing 1: methods. j Changing the width or joint profile when , - - e t I . , repointing. Loss of the historic character due to insensitive repointing. Removing sound stucco;or repairing with new stucco that is stronger than the historic material or does not convey the same visual appearance. Applying cement stucco to unfired, unstabilized adobe. Because the cement <--- stucco will not bond properly, moisture can become entrapped between materials, resulting in accelerated deterioration of the adobe. Patching concrete without removing the source of deterioration. Replacing an entire masonry feature such as a cornice or balustrade when repair of the masonry and limited replacement of deteriorated of missing parts are appropriate. https://www.nps.gov/tps/standards/rehabilitation/rehab/masonry01.htm 9/12/2019 The Secretary of the Interior's Standards for Rehabilitation&Illustrated Guidelines for R... Page 6 of 7 Using a substitute material for the replacement part that does not convey the visual appearance of the surviving parts of the masonry feature or that is physically or chemically incompatible. Applying waterproof, water repellent, or non-historic coatings such as stucco to masonry as a substitute for repointing and masonry repairs. Coatings are frequently unnecessary, expensive, and may change the appearance of historic masonry as well as accelerate its deterioration. Masonry ....Replace recommended Replacing in kind an entire masonry feature that is too deteriorated to repair--if the overall form and detailing are still evident--using the physical evidence as a model to reproduce the feature. Examples can include large sections of a wall, a cornice, balustrade,column, or stairway. If using the same kind of material is not technically or economically feasible,then a compatible substitute material may be considered. not recommended ---_- Removing a masonry feature that is unrepairable and not replacing it; or replacing it with a new feature that does not convey the same visual appearance. Design for Missing Historic Features The following work is highlighted to indicate that it represents the particularly complex technical or design aspects of rehabilitation projects and should only be considered after the preservation concerns listed above have been addressed. recommended Designing and installing a new masonry feature such as steps or a door pediment when the historic feature is completely missing. It may be an accurate restoration using historical, pictorial, and physical documentation;or be a new design that is compatible with the size,scale, material, and color of the historic building. not recommended Creating a false historical appearance because the replaced masonry feature is based on insufficient historical, pictorial, and physical documentation. Introducing a new masonry feature that is incompatible in size, scale, material and color. I , Home J Next I Previous https://www.nps.gov/tps/standards/rehabilitation/rehab/masonry01.htm 9/12/2019 CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 EDFarmingtonMN,gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Downtown Facade Improvement Grant Program Funding Increase DATE: September 19, 2019 INTRODUCTION/DISCUSSION At the last meeting, members asked for an outline of funds for this program and talked about the process. The Downtown Façade Improvement Grant Program began in late 2016. I n 2017,the EDA approved two grant applications amounting to$5,000 in grant funding. The total amount for all projects (grant funding and applicant funding) was $17,947.60. I n 2017,the EDA budgeted$20,000 for grant funding. Allowed grant amounts were$1,500 up to$2,500. I n 2018,the EDA approved four grant applications amounting to$25,977.86 in grant funding. The total amount for all projects (grant funding and applicant funding)was $102,499.72. I n 2018,the EDA budgeted $20,000 for grant funding and increased the budgeted amount by$5,978. Allowed grant amounts were$1,500 to$10,000. I n 2019, the EDA has approved two grant applications amounting to$19,500 in grant funding. The total amount for all projects (grant funding and applicant funding)was $49,460. There is $500 remaining in available grant funds. Allowed grant amounts remain at$1,500 to$10,000. To summarize, in three years,the EDA has awarded $50,477.86 in grant funding for projects totaling $169,907.32. The program has been very successful and should continue to be in the future. For the remainder of 2019 and in the future, staff is recommending increasing the grant funding to $25,000 due to the increased program interest in 2018 and the majority of funding used up with three months to go in 2019. The main purpose of this program was for building owners to improve the outside of their buildings in the downtown area. The Facade I mprovement Program is a simple, straight forward application process which meets the city's goal of being easy to work with. Since we receive a small number of applications, approving them on a first-come,first served basis is working very well,therefore, a defined application timeline is not recommended. Staff receives an invoice showing the work has been completed and paid before grant funds are distributed. The process has been working very well for applicants and staff, therefore, no changes to the process are being recommended. Staff has upgraded the application to a fillable form on the website. ACTION REQUESTED Approve increasing the Downtown Facade Improvement Grant funding to$25,000 for 2019 and into the future. CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Business Retention & Expansion Communications Strategy Update DATE: September 19, 2019 INTRODUCTION/DISCUSSION As discussed at the August EDA meeting, Lauren Siebenaler, Communications Specialist,will join us to discuss the City's communications strategies, public engagement platforms, and opportunities to promote the work of the EDA.This item ties directly into the EDA's ongoing discussions of a renewed business retention and expansion (BR&E) program. Staff was directed to bring forward a program framework based on the discussion at our last meeting. Rationale—A consistent BR&E program promotes increased dialogue and knowledge sharing between the local business community and City Hall. Structure—Monthly featured business visit coordinated by city staff in partnership with an EDA member and City Council member. Reason for Visit—Can vary based on the business. I n general,the intent is to share the good news of the City and learn about the featured business. For example, October 1-7 is Minnesota Manufacturing Week. A visit will be scheduled with a manufacturing company to recognize their contributions to the local economy. Outcomes—Stronger connection to City Hall, identification of unknown challenges, promotion of positive work and news updates. Optional follow up publicity similar to ribbon cuttings. Tools—Common Questions Survey (example attached) and key talking points. Talking points may include: Emphasizing the City Council's adopted priorities: Financial-Continue to take the steps to make Farmington a city of fiscal excellence. Development-Support the expansion of residential, commercial, and industrial properties. Partnerships- Forge opportunities with existing and new partners. Service Delivery- Endeavor to provide core government services at high quality levels. Recent designations: Safest City Award, Best Cities to Live, increased bond rating based on sound financial practices,several newly approved residential developments, several pending or recently completed commercial projects. This program will supplement the ongoing work noted in the attached matrix. ACTION REQUESTED Discuss implementation of this component of the EDA's 2019-2021 Strategic Plan for Economic Development. ATTACHMENTS: Type Description D Exhibit BR&E Activities Matrix D Exhibit Common Questions Survey Example Farmington EDA Business Retention and Expansion Strategy Summary Category Activity Audience and Frequency Relationship Farmington Business Association(FBA)morning networking meetings Farmington businesses-Monthly Ribbon cuttings for new or expanding businesses Farmington businesses-5-10/year Dakota County Regional(DCR)Chamber of Commerce events(Good Day Dakota Dakota County-wide businesses-Monthly County,Legislative Updates etc.) Economic Development Association of Minnesota(EDAM)events Economic development professionals from across the state- Monthly Minnesota Commercial Association of Real Estate Association(MNCAR) Commercial property brokers-Weekly membership and event participation(MNCAR Expo) Miscellaneous business inquiries,start-ups,existing business questions etc. Farmington businesses-Weekly Partnership Dakota County Community Development Agency(CDA)-Open to Business, Dakota County Community Development Directors and CDA Broadband,CDBG programs staff-Bi-monthly MN Department of Employment and Economic Development(DEED)MN Public and private sector economic development Marketing Partners professionals from around the state including state officials- 3x per year Private sector economic development collaborations(Dakota Electric,Xcel Energy) Private sector economic development partners-As needed DCR Chamber of Commerce programs and collaborations(State of the City, Annually(SOTC)and monthly update meetings with DCR monthly update meetings,Chamber Directory) Chamber leadership GreaterMSP site selection responses GreaterMSP staff and national site selectors-As needed Data Dakota/Scott Workforce Development Board updates Monthly DEED employment data and industry trends Monthly GreaterMSP dashboard and on demand data requests As needed Informational EDAM Third Thursday programs and EDAM University educational series Monthly Minnesota Real Estate Journal(MREJ)educational development events Quarterly Business highlights and updates in the Farmington"Currents"newsletter Quarterly Local and regional news stories and updates Daily 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? 1iPage 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 21Page 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: 3IPage 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 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 ®np O FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: City Council Update DATE: September 19, 2019 INTRODUCTION/DISCUSSION As discussed at a previous EDA meeting,this will be a standing agenda item to allow City Council members the opportunity to provide the EDA with any updates they feel are pertinent to the work plan of the EDA. ACTION REQUESTED Receive an update on recent City Council actions or discussions. CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 VIII 1�1YY�IIIr` O FarmingtonMN,gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: September Director's Report DATE: September 19, 2019 INTRODUCTION/DISCUSSION South of the River Real Estate Summit Mayor Larson is/was speaking at the 7th Annual South of the River Real Estate Summit in Rosemount on Thursday, September 19. Staff will provide an update on the attendance and messages heard from all participating communities. Workforce Development Month September is Workforce Development Month.The Minnesota Department of Employment and Economic Development(DEED) is hosting a number of activities including the launch of CareerForce: https://www.careerforcemn.com/about-us. Please see the attached press release along with Governor Walz's proclamation. Minnesota Manufacturing Week October 1-7 October 1-7 is Minnesota Manufacturing Week. See the attached sample proclamation along with this manufacturing quiz provided by DEED for additional information: https://mn.gov/deed/ed/minnesota- industries/manufacturing/mfgweek/quiz.jsp. 2019-2021 Strategic Plan for Economic Development An updated status of items in the 2019-2021 Strategic Plan for Economic Development will be provided on a monthly basis.The plan and summary sheet are attached. EDA members should review the plan on a regular basis. NEXT MEETING Our next regular meeting is October 24th at 6:30 p.m. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Exhibit September is Workforce Development Month D Exhibit Workforce Development Month - Governor's Proclamation o Exhibit MN Manufacturing Week D Exhibit 2019-2021 Strategic Plan for Economic Development D Exhibit Strategic Plan Summary and Status Report 9/16/2019 DEED Developments Blog/Minnesota Department of Employment and Economic Development EMPLOYMENT AND ECONOMIC DEVELOPMENT DEED Developments Blog .�. � • _ . DEED D _ SEE WHY MINNESOTA ISA GREAT PLACE TO LIVE,WORK AND DO BUSINESS EMPLOYMENT AND ECONOMIC DEVELOPMENT CI View entire list September is Workforce Development Month September 9,2019 I Commissioner Steve Grove Governor Walz declared September as Workforce Development Month (/deed/assets/workforce-development- month_tcm1045-401642.pdf).in the State of Minnesota. At DEED, we are kicking off a month-long series of events to examine and address the opportunities and challenges in growing Minnesota's workforce. Minnesota has a lot to be proud of w hen it comes to our state's workforce. We reached 3,108,951 total jobs in June and have added 348,054 new jobs since 2011. Wages have also increased by 24.1% during that same time period. But we know that challenges exist. Businesses are struggling to find and retain workers, and our state currently has nearly 137,000 vacant positions that need to be filled — a historically high number. That's why we've made workforce development a centerpiece in our 2020 strategic plan, by modernizing our offerings, taking a new approach to tackling disparities, and sharpening our focus on building services that concentrate on the specific needs of businesses. For each of our goals, we've set clear metrics that we will use to track our success in improving our work. As part of Workforce Development Month, DEED is planning several events that will both celebrate our state's workforce and also help us learn more about the challenges we face across the state: • Workforce Development Deputy Commissioner Hamse Warfa and CareerForce Director Lorrie Janatopoulos will hold listening tours across the state to hear from workforce development leaders and businesses about the challenges and opportunities facing Minnesota's workforce system. https://mn.gov/deed/newscenter/social-media/deed-developments/?id=401916 1/2 9/16/2019 DEED Developments Blog/Minnesota Department of Employment and Economic Development • We will roll out a fresh look and approach to our workforce development direct service efforts, now called CareerForce (haps://www.careerforcemn.com/about-us), which includes enhanced services to Minnesota employers and tailored assistance to help all Minnesota workers find fulfilling employment. The kick-off is set for the week of September 16 and will include events at CareerForce locations across the state (https://www.careerforcemn.com/locations),. I'll be speaking at an event on September 17 at the CareerForce Minneapolis North location. • That same day, September 17, we'll host the North Side Community Career and Resource Fair ,(https://mn.gov/deed/events/northside/), also at the CareerForce Minneapolis North location, from 3— 7 p.m. • On September 24, DEED will host the St. Cloud Area Career Fair (https://mn.gov/deed/events/st-cloud- job-fair/),from 2—6 p.m. at River's Edge Convention Center. • On September 25, I will host a One Minnesota Workforce Roundtable with Governor Walz focused on equity in our workforce system. Minnesota continues to face one of the largest equity disparities in the country, but we are excited to leverage our shared expertise and innovate to meet current and future workforce needs. We are excited to draw a deeper focus on workforce this month and share more on our exciting journey to grow our collective efforts to help the businesses and people of Minnesota succeed. —Commissioner Steve Grove Permalink: http://mn.gov/deed/newscenter/social-media/deed-developments/index.jsp?id=1045-401916 (http://mn.gov/deed/newscenter/social-media/deed-developments/index.jsp?id=1045-401916), ❑ View entire list Archives Tags view as cloud RSS feed(/deed/rest/rss/DEED Developments blog?id=1045-35332&detailPage=/deed/newscenter/social-media/deed- developments/index.jsp), https://mn.gov/deed/newscenter/social-media/deed-developments/?id=401916 2/2 �'fHES•,,,� .% ' STATE of MINNESOTA WHEREAS: Investment in the education,training,and career advancement of Minnesota's workforce is crucial to the ability of our state to compete in the global economy;and WHEREAS: Collaboration between the workforce system and business,education,and private-public partners is critical to align training and workforce needs;and WHEREAS: Unprecedented changes in our state demographics between 2015 and 2035,including more than a half million people reaching the age of 65 and a decline in the share of the working age population from 62%to 57%,means employers and Minnesota's workforce system must work together to bring all of our population who need sustainable employment into the workforce;and WHEREAS: By 2035,one in four Minnesotans will be from a community of color or Indigenous population;and WHEREAS: Bringing all Minnesotans who need sustainable employment into the workforce will help address employment and economic disparities based on race,disability,veteran status or past criminal record;and WHEREAS: Minnesota's workforce system,called CareerForce,provides tailored resources to help meet the needs of all Minnesota employers and career seekers;and WHEREAS: CareerForce commits to customer-focused services,pledges to put equity at the center of all its work and focuses on meeting customers where they are in the spirit of One Minnesota NOW,THEREFORE,I,TIM WALZ,Governor of Minnesota,do hereby proclaim September 2019,as: WORKFORCE DEVELOPMENT MONTH in the State of Minnesota. IN WITNESS WHEREOF,I have hereunto set my hand and caused the Great Seal of the State of Minnesota to be affixed at the State Capitol this 296 day of August. O i GOVERNOR (op • SECRETARY OF STATE minnesota MANUFACTURING WEEK ,. .. UI t• • Whereas: Manufacturing is a dynamic and robust industry, crucial to the health and strength of Minnesota's diverse economy; and Whereas: Manufacturing added $52.7 billion to Minnesota's economy in 2018, representing the second-largest contribution (14 percent)to the state's gross domestic product by any industry; and Whereas: Workers took home $21.6 billion in wages from Minnesota manufacturing jobs in 2018,the second-largest total payroll among private sector industries; and Whereas: Manufactured exports brought$21 billion into the Minnesota economy in 2018; and Whereas: Manufacturing in Minnesota pays an average annual wage of$67,098, which is 15 percent higher than the state's overall average wage; and Whereas: Manufacturing provides 322,000 highly skilled, well-paying jobs,which significantly contribute to Minnesota's high standard of living and economic vitality. Strategic Plan 2019 - 2021 Farmington Economic Development Authority JrJ '4. ,� � -ey. v y:..j s January 2019 NORTHLAND ',,,,„.... PUBLIC FINANCE EDA Strategic Plan 2019-2021 CONTENTS Contents 1 Introduction 2 Context 3 EDA Powers 3 Comprehensive Plan 3 City Government 4 EDA Resources 5 Strategic Plan 6 Objective: Expand and Diversify the Tax Base 6 Objective: Encourage development that brings additional goods and services to Farmington 11 Objective: Promote the economic and physical health of older sections of Farmington....12 Objective: Effectively communicate information about the EDA within City government,to the community and to people and businesses outside of Farmington. 13 Objective: Conduct the business of the EDA to maximize its effectiveness. 14 January 2019 EDA Strategic Plan 2019-2021 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 Administrator Development Residents Business Director Economic Development Authority(EDA) The EDA is governed by a 7-member board of commissioners appointed by the city council. Members of the EDA board consist of two city council members,one Independent School District 192 school board member,and four residents. Economic development staff is part of the January 2019 EDA Strategic Plan 2019-2021 5 city's Community Development Department.The Community Development Director serves as the Executive Director of the EDA. This structure combines the dedicated focus on economic development and statutory powers of the EDA with a day-to-day foundation in the core structure of the city. EDA Resources Creating and implementing the Strategic Plan must be done with an eye towards the resources of the EDA.With limited resources,the effective use of resources should be a factor in evaluating current and future activities. Do the potential benefits of the action merit the allocations of EDA resources? The most important resource of the EDA is city staff.The experience and technical skills of economic and community development staff provide the capacity to successfully achieve EDA objectives.The staff resource available to the EDA is a finite commodity. It is also a commodity that serves other functions within city government. January 2019 EDA Strategic Plan 2019-2021 6 STRATEGIC PLAN The EDA Strategic Plan is based on the following Core Strategies: • Attract new businesses that provide jobs,needed goods and services,and tax base • Encourage the retention and expansion of existing business • Encourage revitalization and redevelopment • Manage EDA programs and projects • Be the voice of economic development in city government The Core Strategies guide EDA actions. All actions shall be consistent with one or more of the Strategies. Objective: Expand and Diversify the Tax Base Economic development is not an end itself,but rather a means to achieve certain outcomes.An important outcome in Farmington is to grow the property tax base. Preliminary tax rates for taxes payable 2019 show Farmington with the fifth highest city tax rate for Dakota County cities (over 1,000 population).When all other taxing jurisdictions are included,the total tax rate in Farmington is the highest in Dakota County. Preliminary 2019 Tax Rates 160.00 140.00 120.00 A` a� 100.00 " - is 12 80.00 60.00 40.00 , , , , , , , 11 •fir. 111 L 20.00 Qac QaJ \�� `�` �`o� �\\e \�c•� o�� Ja�\e- dee �oJr o5e <Jr tea& �o ,s7 c'\et 4\e ■City Rate M All Others Rate Figure 1 Tax base is a key factor in a higher tax rate. A lower tax base means that the city must tax at a higher rate to generate revenue needed to operate the city. A comparison with other Dakota County cities provides some perspective on Farmington's tax base.Figure 2 shows total Pay January 2019 EDA Strategic Plan 2019-2021 7 2019 Taxable Market Value by property classification. Figure 3 compares the distribution of Taxable Market Value among the property classifications. Taxable Market Value Taxes Payable 2019 8,000,000,000 7,000,000,000 6,000,000,000 ■All Other 5,000,000,000 ■Agriculture 4,000,000,000 Industrial 3,000,000,000 ■Commercial 2,000,000,000 111" 111111 ■Apartments 1,000,000,000 ■Residential Farmington Lakeville Rosemount Hastings Apple Valley Figure 2 Taxable Market Value Taxes Payable 2019 100% .. ;, . 90% im err 80% 70% U U All Other 60% • ■ ■ ■ ■Agriculture 50% 1 ■ ■ ■ Industrial 40% ■ MI ■Commercial 30% ■ • ■ ■Apartments 20% ■ ■Residential 111 111 10% 0% Farmington Lakeville Rosemount Hastings Apple Valley Figure 3 January 2019 EDA Strategic Plan 2019-2021 8 • Hastings has less Taxable Value than Farmington($1.52 billion to$1.74 billion). However,the portion of the total tax base in commercial and industrial property is more than double in Hastings(11%)in comparison to Farmington(5%). • The commercial/industrial share of the tax base in the comparison cities ranges from 9.66% in Apple Valley to 11.24% in Rosemount. • Rosemount provides a good contrast to Farmington.The cities have similar populations (Farmington 22,421 -Rosemount 23,956),but Farmington has 29% less tax base.Total Taxable Market Value per capita in Farmington is$87,866 and$116,100 in Rosemount. Growing and diversifying the tax base has a variety of benefits.A growing tax base gives the city more flexibility in funding services and capital improvements.This flexibility would likely extend to the EDA budget.The demands for operating revenues may limit the ability to lower the tax rate,but a growing tax base lessens the need to raise rates. Growing the tax base is one of the only means available to the city to promote reductions in other parts of the total tax rate. A diversified tax base changes the impacts of economic downturns as value changes vary among property types. Commercial and industrial development make different use of city services than residential with the potential for comparably less pressure to increase services and spending. EDA efforts to grow the tax base must be done thoughtfully and strategically.The Minnesota property tax system affects the ability of the city to realize growth in the tax base from new development.40% of all new commercial-industrial value goes into the Fiscal Disparities Pool and is not available for local taxation.The use of tax increment financing(TIF) or tax abatement defers the benefits of new tax base until the financial assistance ends.Property class rates set by the Legislature convert the Assessor's Estimated Market Value to Tax Capacity(taxable)value at different rates. Figure 4 illustrates these points.This chart compares the Tax Capacity value available to the city (and other taxing jurisdictions)from alternative development of 100 acres. January 2019 EDA Strategic Plan 2019-2021 9 Tax Capacity From Alternative Land Uses Industrial Retail Single Townhome Acres 100 100 100 100 Lot Coverage/Density 30% 30% 3 6 Development(SF or Units) 1,306,800 1,306,800 300 600 EMV per SF or Unit 65 125 330,000 330,000 EMV 84,942,000 163,350,000 99,000,000 198,000,000 Tax Capacity 1,698,090 3,266,250 990,000 1,980,000 Fiscal Disparities 40% 40% 0% 0% Net Local Tax Capacity 1,018,854 1,959,750 990,000 1,980,000 2,500,000 2,000,000 C1) m 1,500,000 U CO a. CD U X 1,000,000 CO 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 Ill 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 11.11111.1.1i EDA Strategic Plan 2019-2021 12 Objective: Promote the economic and physical health of older sections of Farmington. One of the Economic Development Goals of the Comprehensive Plan is"redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas".In reality,there are two aspects to redevelopment.The most effective strategy is to promote the economic and physical health of the community to avoid the need for redevelopment.If the need for redevelopment exists,however,it is important to prevent blighting conditions to spread to other properties. The EDA has taken a proactive approach to redevelopment by creating plans for the Downtown and the Highway 3 Corridor.These plans provide a framework for public and private investment. Implementation of these plans is not the sole responsibility of the EDA.The EDA must coordinate its efforts with the city council,planning commission and other stakeholders. Tactics 1. Engage on a consistent basis with the planning commission to share goals and develop strategies. 2. Support the outcomes and implementation of the Highway 3 Corridor Plan. 3. Review and promote existing programs that target key areas. 2019 Action Plan 1. Schedule quarterly joint work sessions with the planning commission and semi-annual work sessions with the city council to align priorities. 2. Complete and identify initial implementation steps of the Highway 3 Corridor Plan. 3. Meet with Dakota County CDA staff(or invite to EDA meeting) to discuss programs. January 2019 EDA Strategic Plan 2019-2021 13 Objective: Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington. Communication is an essential function of the EDA. Communication with the city council promotes collaboration on shared objectives and builds the foundation for the financial resources required by the EDA. Communication with the community explains the work of the EDA,highlights the positive impact on the community and offsets potential misinformation. Communication informs the business community,both within and outside of the community, about the opportunities to do business in Farmington and the assistance available from the EDA. The city's website is the most important communication tool for the EDA.The website is the place people look for information about the EDA.Farmington's online presence for economic development should be guided by several factors: • Information about the EDA and economic development in Farmington must be easy to find on the website. • The information on the website must be useful. • The form and content of the pages devoted to economic development should convey a positive message that creates interest in Farmington. Tactics 1. Utilize the city's website as the primary point of information about the EDA and economic development in Farmington. 2. Ensure that the website contains useful information for businesses evaluating potential development in Farmington. 3. Make use of the newsletter and other ongoing city communications to provide information about the EDA. 2019 Action Plan 1. Review other websites to identify elements that could be incorporated into Farmington's website. 2. Review and enhance the city's webpage(s) related to Economic Development. 3. Develop one or more new communications tools to relay the messages and work of the EDA. 4. Shift the monthly"Director's Report" in the EDA packet to a more public-facing newsletter. 5. Develop a social media strategy to promote the work of the EDA. January 2019 EDA Strategic Plan 2019-2021 14 Objective: Conduct the business of the EDA to maximize its effectiveness. While this objective seems obvious,it is important to make it a stated objective of the Strategic Plan.The EDA operates with limited resources in terms of funding,staff time and board responsibilities. All decision-making must consider the effective use of these limited resources. Tactics 1. Provide consistent information to the EDA about its financial condition and existing obligations. 2. Provide the EDA with consistent updates on the status of the action plans for the Strategic Plan and other ongoing initiatives of the EDA. 3. 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