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HomeMy WebLinkAbout01-30-20 CITY OF Meeting Location: FARMI NGTON Farmington City Hall 1"1111� 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA January 30, 2020 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 (November 21, 2019, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Continued- Downtown Facade Improvement Grant Program Application 345 3rd Street— Fletcher Building (b) Business Retention & Expansion Update (c) EDA Programs and Financing Discussion (d) City Council Update 9. DIRECTOR'S REPORT (a) January Director's Report 10. ADJOURN CITY OF O430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 OFarmingtonMN.gov ,...... -ii . TO: Economic Development Authority FROM: Cynthia Muller,Administrative Assistant SUBJECT: Approve Meeting Minutes (November 21, 2019, Regular Meeting) DATE: January 30, 2020 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the November 21, 2019, EDA meeting. ACTION REQUESTED Approve the November 21, 2019, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting November 21, 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; Kalley Swift, Community Development Specialist 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bernhjelm, second by Jolley to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Bernhjelm, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (October 24, 2019, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Business Retention & Expansion Draft Program Plan Kalley Swift, Community Development Specialist, explained that BR&E programs focus on two components—data and relationships. Staff is hoping to reach a balance between the two. The BR&E program directly relates to the EDA Strategic Plan. She presented a list of goals for the program. Staff suggested forming a sub-committee of 2-3 EDA members to develop this program. People doing the business visits will be a volunteer group who want to improve business retention and expansion. These people will be outside of the EDA or city staff. Volunteers could come from other boards and commissions, chamber members, etc. There would be one business visit a month with 2-3 people at each visit. The EDA sub-committee will take the data and information gathered from the business visits and direct actions for short, medium and long term follow-up procedures. EDA Minutes(Regular) November 21,2019 Page 2 The next step is to identify a list of businesses the program would like to contact. Staff suggested looking at businesses with less than 100 employees and top ten employers. It could also be businesses who have ground breakings and ribbon cuttings. Chair Simmons spoke about how the visit could be a little different depending on the size of the business and how familiar they are with EDA programs. Staff recommended a uniform approach to the visits so we get the same data sets back and can identify trends. Volunteers could come and go, but the program structure would stay the same. Member Jolley noted we have asked a business to complete a survey in past visits. In her experience a more effective way to accomplish the same goal is for us to look at the survey, know what's in it, know what information we are trying to get from that particular business. Everyone is not the same and business owners have different levels of time and patience. We need to know what is on that survey and we need to fill it out. You don't want to give the same questionnaire to a business that is struggling and one that has just doubled their staff. That is where the personal approach makes more sense. You want to talk to the owner and they are busy. So let's make it as easy as we can. Member Butterfield agreed. That is a great reason for having business visits and a more robust list of people going that have different perspectives. He envisioned it as having a casual conversation while learning what is on the survey. Member Jolley also felt we need to do more with businesses that are leasing. Member Wilson felt the concept behind the sub-committee to run with the program is the most exciting part. Member Jolley noted it will be a learning experience for the sub-committee. She liked the program, but let the program grow and develop. We do want to have something to be able to talk to owners or managers of the business. Staff presented a sample letter and there will be follow-up with a phone call or stop in to see if they received the letter and are interested in a visit. After the program is set up,we need to implement business visits and the business needs assessment. Staff provided assessment surveys from the University of MN and GreaterMSP. These should be used to develop an assessment survey for Farmington. Chair Simmons noted a couple questions deal with when the renter's lease expires. She agreed with Member Jolley that is an important factor to be proactive. Community Development Director Kienberger wanted to get the questions to the business ahead of time and provide the answers to us so the majority of the visit can be spent getting data and asking specific questions that we would repeat for every business, but it will not be impersonal. Community Development Specialist Swift noted a key part of the business is identifying red flags that would cause the business to close or leave the city. There would be a business visit training for volunteers before they go out. Stipends would not be paid to the volunteers. Training will be provided by city staff. There should also be a skip-it rule and a confidentiality rule. The skip-it rule allows a business to opt out of answering any questions. The confidentiality rule will allow businesses to increase their response rate if they are worried about giving a response about the business climate. EDA Minutes(Regular) November 21,2019 Page 3 There will be short, medium and long-term follow-up. The short term will be thank you notes and respond to any red flags. Information would be sent to them regarding programs useful to them. Medium-term could be a business spotlight in the Farmington Currents and social media. This would also promote the BR&E program and would be seen by other businesses to encourage them to participate. Long-term a summary report of the data would be prepared. The next step would be to create the subcommittee. MOTION by Bernhjelm, second by Butterfield to create a subcommittee to run the BR&E program. APIF, MOTION CARRIED. Members Bernhjelm, Butterfield, Wilson volunteered to be on the subcommittee. Member Jolley offered to be an alternate. Staff will reach out to absent members to determine their interest. The first meeting of the subcommittee would be the first week in December. One of the first things the subcommittee will do is determine volunteers for the business visits. Member Bernhjelm saw it as a posting for volunteers similar to that for board and commission members. Member Butterfield felt we are moving forward with a more formal BR&E program and that should be promoted within our social media channels. b) 2020 CDBG Allocation Recommendation Staff has received the actual numbers for the CDBG program for 2020. In 2019 we received $39,549 in CDBG funds. Current balances are: Home Improvement Loan Program $21,428.90 Commercial Rehab $34,999.50 Public Service—Senior Center $ 5,000.00 We will be receiving$38,897 for program year 2020, subject to the federal budget. Staff is proposing to allocate: Home Improvement Loan Program $33,897 (there is a wait list for this) Senior Services Financial Support $5,000 The Commercial Rehab of$34,999.50 still exists for program year 2020. MOTION by Wilson, second by Bernhjelm to forward this recommendation to the City Council for approval. APIF,MOTION CARRIED. c) City Council Update Member Bernhjelm noted there has been a discussion here about the EDA budget and how it is allocated by the City Council. It was brought to the City Council about bringing budget recommendations from boards and commissions. So if you want more than $40,000 you have the opportunity to explain it to the City Council. A meeting in the spring would be spent on the EDA budget and what is needed. Then the chair of the EDA would come to the City Council. A first draft of the budget is brought to the City Council in June for the following year. The tax levy is approved in September so the EDA will know how much they are receiving for 2021 at that time. EDA Minutes(Regular) November 21,2019 Page 4 9. DIRECTOR'S REPORT a) November Director's Report All EDA members will be attending the board and commission reception with the City Council on December 5. A summary of the work done will be presented by the chair of each group. Staff discussed an outline of the presentation. Because of this,the EDA will not have another meeting in December. The next meeting would be January 23, 2020. Chair Simmons asked about moving that meeting to January 30, 2020. Members agreed. Riste lot update—Homestead Community Church continues to have an interest in the Riste lot. Staff is working on a contract for private development. 10. ADJOURN MOTION by Bernhjelm, second by Wilson to adjourn at 8:07 p.m. APIF, MOTION CARRIED. Respectfully submitted, a tA,t i Mu.LLer Cynthia Muller Administrative Assistant CITY OF O430 Third St., Farmington, MN 55024 FARMINCTON © 651-280-6800 FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: January 30, 2020 INTRODUCTION/DISCUSSION Please find attached the monthly financial statements of the EDA. 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Q d U LL 0 a) - 76 Z O y 0 R CO 'Cr N CO Co Co Co Ln N O O co N y y 2 .3 Cn 0 V 4 d 4 d 4 41. 4 4 Ln Ln a) 0 22 _c E C I— co co co co co co co co co (4 co co co F— F t- O Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Actual Budget Unit Account Description 2019 2019 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 253,552.77 2000-HRA/ECONOMIC DEVELOPME 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPME 1505 PREPAID EXPENSES 300.00 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE -299,361.64 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS -6,168.03 -2,300.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -50,000.00 -50,000.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 8,467.50 11,680.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 853.00 4,000.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 8,317.00 8,317.00 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 207.93 300.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 142.70 130.00 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,820.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 2,898.45 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 391.32 1,000.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 0.00 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 9,500.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 31,229.00 17,000.00 2000-HRA/ECONOMIC DEVELOPME 7310 OPERATING TRANSFERS 2,850.00 2,850.00 Total 2000-HRA/ECONOMIC DEVELOPM 0.00 1,977.00 0.00 1,977.00 0.00 1,977.00 1/27/2020 11:26:02 AM Page 1 of 1 CITY OF O430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 A-4=-00••••'_. _� ® FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Continued- Downtown Facade Improvement Grant Program Application 345 3rd Street—Fletcher Building DATE: January 30, 2020 INTRODUCTION/DISCUSSION This grant application was continued from the October meeting pending availability of funds and a decision by the Planning Commission/Heritage Preservation Commission on the issuance of a "certificate of appropriateness"for repairs to the exterior of the Fletcher building located at 345 3rd Street. Repairs to the Fletcher Building were discussed at the October 8, 2019 regular Planning Commission meeting and the October 22, 2019 special Planning Commission meeting.The item was continued to the January 14, 2020 Planning Commission meeting pending a report from the city's heritage preservation consultant. A copy of that report is attached. The Planning Commission voted to deny the certificate of appropriateness at their meeting on January 14, 2020. The decision is currently being appealed to the City Council per Section G of 2-11-5 (Design Review) of city code. Attached is the original 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. The Downtown Facade Improvement grant program is appropriated $20,000 annually by the EDA. Eligible grant awards range from $1,500 up to$10,000 with matching funds required. The 2020 program guidelines are attached. ACTION REQUESTED Deny the active application and recommend the applicant reapply in the future with an application and supporting materials that comply with the requirements of the program. ATTACHMENTS: Type Description D Exhibit Condition of Historic Property Report- Fletcher Building 345 Third Street • Exhibit Facade Improvement Grant Program Guidelines 2020 D Exhibit 345 Third Street Facade Improvement Grant Application Pathfinder CRM, LLC Cultural Resource Management & Heritage Preservation Consultants PO Box 503 AK Spring Grove, Minnesota 55974-0503 n. 507-498-3810 www.pathfindercrm.com 6- S 0 Transmitted via email December 30, 2019 Adam Kienberger Community Development Director City of Farmington 430 Third Street Farmington, MN 55024 RE: Condition of Historic Property Report Fletcher Building, 345 Third Street, Farmington, MN Dear Mr. Kienberger: On November 7, 2019, I had the opportunity to visit and assess the condition of the historic Fletcher Building. At the same time I met on site with the city planner, building official, and Pam Heikkla, the property's owner. The purpose of my investigation was to examine the exterior masonry and recommend an appropriate treatment for the deteriorated brickwork. After the initial site visit, I conferred with my associate Christian Hendrie, an experienced historic architect, who provided his professional opinion on the best practices relating to preservation, rehabilitation, and maintenance of historic brick masonry walls. Several other colleagues in the historic preservation field provided helpful comments on the best practices for rehabilitating old buildings with walls made of Chaska brick. No attempt was made to conduct any in-depth structural system analysis or materials testing. I did not consider it necessary to retain the services of a structural engineer. Observations My inspection of the subject property focused on the condition of the exterior wall surfaces that were visible on the north and east elevations, which the owner has proposed to cover with stucco. The vertical brick wall on the north side of the building was completely visible; however the lower portion of the rear wall was covered by the one- story building (311 Oak Street), which abuts the east side of the historic structure. The brick walls are original and the masonry is typical of late-nineteenth century commercial construction. The brick itself is readily identifiable as "Chaska brick" (the generic term applied to soft mud bricks produced in the Chaska area between 1857 and 1950) and Page 1 of 4 represents one of the building's distinguishing architectural features. All of the building's exterior walls are load-bearing walls and appear to be structurally sound. I did not observe any visible signs of movement, settling, or deflection that would indicate structural system failure. Paint problems were observed on all of the historic brick surfaces. At some point in time, all of the exposed masonry was coated with multiple layers of paint. At the present time these surfaces display abundant evidence of paint failure in the form of blistering, cracking, flaking, and peeling; in a few places the paint has nearly disintegrated, exposing bare brick. The rate of paint deterioration appears to have accelerated in recent years and detracts from the property's architectural character. More importantly, the unsightly painted surfaces indicate that liquid water and water vapor have penetrated the wall, causing deterioration of the underlying bricks and mortar. The Fletcher Building exhibits masonry problems typical of Chaska brick walls exposed to weathering. Chaska brick, owing to the nature of the clay and the details of its manufacture, is considered a soft mud brick and is therefore more porous and susceptible to moisture damage than other types of brick commonly found in historic buildings. During my inspection visit I observed scattered evidence of spalling, chipping, and cracking, which I interpreted as having been caused by wind, rain, and freezing-thawing cycles. Most of the damage was minor, except for the detachment of a few of the bricks in the parapet walls. This is a common problem with old brick parapet walls and is usually caused by the failure of the mortar joints rather than any inherent structural problem with the wall. In this case, the masonry deterioration in the parapet walls may have been exacerbated by improper roof drainage (water running off the roof and splashing against the inner surfaces of the walls), or by moisture entering the tops of the walls through cracks in the coping. The major problem with the brickwork is deterioration of the mortar joints, which is undoubtedly the result of deferred maintenance. Much of the old mortar has eroded and there are areas where the mortar has broken up, crumbled, and dissolved. The conditions were particularly noticeable on the east and north elevations, where some of the joints have been reduced to sandy, granular rubble, allowing moisture to penetrate the corners and edges of the adjacent bricks. Moisture damage has caused some bricks to crack or spall, exposing the interiors of individual bricks to weathering. Where the mortar joints have failed, moisture has been drawn into the wall through capillary action, damaging the porous bricks. As noted above, the problem is worse in the parapet walls, where freezing water and wind forces have forced the mortar joints apart, breaking the bond and causing some of the bricks to shift. No other critical preservation issues were identified. Paint and mortar problems notwithstanding, the load-bearing wall system appeared to be functioning properly and there were no indications of imminent structural failure. Overall, the historic building was in a good state of preservation at the time of my visit. Findings and Recommendations Page 2 of 4 In my professional opinion, the brick walls are a distinguishing design feature and contribute significantly to the Fletcher Building's historical and architectural values. Every reasonable effort should be made to rehabilitate the property by repairing the damaged paint, bricks and mortar, and by correcting drainage problems at the roof and foundation. Deteriorated bricks and mortar should be repaired rather than replaced; where replacement is necessary, the new material should match the old. Coating historic brick walls with stucco is not an appropriate preservation treatment. My recommendations for rehabilitating the exterior walls are as follows: 1. Clean the exterior walls. The first step in the rehabilitation process should be to remove as much of the peeling paint, grime, and stains as possible. Cleaning brick masonry surfaces should be carried out using the gentlest means possible. The preferred method is hand-scrubbing with natural bristle brushes, followed by low-pressure water spraying. The brick surfaces should be allowed to dry completely before any additional work is done. 2. Repoint (tuckpoint) the deteriorated mortar joints. All of the accessible mortar joints should be carefully inspected and replaced only where the mortar is deteriorated or missing. Use hand tools (hammers, chisels, rakes) to remove the deteriorated mortar; even in the hands of "experts," the using electric saws and grinders can damage soft brick. The new mortar should duplicate the original material in composition, color, and hardness. It must not contain Portland cement (this can seriously damage the old brick) and the new joints should be tooled to match the historic joint profile. The best practice for matching historic mortar is to have a sample of the old mortar analyzed by a professional lab. If done properly,the repointed mortar joints should last upwards of 50 years. 3. Repair/replace damaged or missing bricks. The goal is to stabilize the exterior walls and protect the historic building from deterioration by reestablishing a weather resistant enclosure (while maintaining its essential historic character). Cracked or broken bricks may be repaired with soft lime mortar. Missing and badly deteriorated bricks, on the other hand, should be replaced in-kind, or with new bricks that match the old (both physically and visually). If salvaged Chaska brick is not available, the Secretary of the Interior's standards require that replacement bricks match the old in size, color, shape, and texture. 4. Remove the old paint. Paint removal should be done in the gentlest manner possible and removal down to the bare brick may not be feasible. Total paint removal from soft brick masonry can usually be accomplished only with the application of a chemical paint remover which would dissolve the paint so that it could be rinsed using a low pressure water wash. None of the commercially available paint removers are without problems; therefore, special care should be taken to avoid using a chemical paint remover that could damage the outer protective skin of the brick, making it more porous (and more susceptible to Page 3 of 4 moisture damage). If a chemical paint remover is used, a test application should be done on a small section of brickwork (approximately 2 by 2 feet) to determine the effect on the brick. Low pressure water washing (200 psi) using a mild biodegradable detergent, soft bristle brushes and hand scrapers is probably the safest, most effective method of removing all of the old paint that is cracked, flaked, or powdered. Sandblasting should never be used to remove paint from Chaska brick. 5. Repaint the exterior walls. As a general rule of thumb, historic preservation professionals prefer that historic brick-faced buildings which have been painted should remain painted. It goes without saying that paint removal should be done in the gentlest manner possible in order to avoid damaging the skin of the bricks. Historically, buildings with Chaska brick walls were sometimes whitewashed or coated with milk paint, which provided a breathable (as well as environmentally safe) coating. Oil or latex paints tend to trap moisture inside the brick, leading to deterioration of the masonry. In this case, the appropriate treatment would be to repaint the exterior surfaces with a high quality, vapor-permeable paint, preferably in a color that would complement the natural "cream" color of the Chaska brick. Products advertised as "water-proof' or "water-resistant" would likely make the moisture problem worse and could cause unrecoverable damage. 6. Conduct routine inspection and maintenance of the building exterior. Because water (either in liquid or vaporous form) is the most deadly enemy of any brick wall, routine inspection and regular maintenance should be an essential part of any historic building rehabilitation strategy. Proper roof and site drainage should be the highest priority, followed by repointing and repainting the walls as needed. For technical information relating to the rehabilitation of historic brick and mortar, see the National Park Service publications, Cleaning and Water-Repellent Treatments for Historic Masonry Properties (Preservation Brief 1), and Repointing Mortar Joints in Historic Masonry Buildings (Preservation Brief 2), which may be downloaded from the Technical Preservation Services website (nps.gov/tps/how-to-preserve/briefs.htm). If you have any questions regarding this report,please do not hesitate to contact me. Sincerely, Pathfinder CRM, LLC Robert c. vogeL Robert C. Vogel,Principal cc: Tony Wippler, Planning Manager Page 4 of 4 CITY OF FARMINCTON Downtown Façade Improvement Program Guidelines and Application 2020 City of Farmington Downtown Façade Improvement Program In conjunction with the Downtown Redevelopment Plan,the Economic Development Authority (EDA) has made funding available to commercial buildings zoned B-2 or B-3 in the downtown area to be used for building façade and exterior improvements. Eligible Properties Commercial buildings zoned B-2 or B-3 in the downtown area as shown on the attached map. Funding Source EDA fund balance of$20,000 annually. Grants will be awarded according to the following scale: Grant Amount 1:1 Match Project Amount $1,500 -2,500 $3,000—5,000 $2,501 —5,000 $5,001 - 10,000 $5,001 - 10,000 $10,001 - 20,000+ Grant Terms & Requirements No more than one grant may be granted per property within one year from the initial application. A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs, the applicant must contribute at least one dollar. The amount of grants to be awarded shall be $1,500 up to $10,000 according to the scale. Program Objectives The intent of this program is to leverage investment in the B-2 and B-3 zoned commercial buildings in the downtown area by providing matching grants of$1,500 up to $10,000 according to the scale, for façade and exterior improvements. As part of the Downtown Redevelopment Plan, business owners are encouraged to improve their buildings' front and back curb appeal through façade improvements such as awnings,paint,tuck pointing, exterior lighting, decorative signage, windows, doors, gutters, accessibility improvements,permanent patios, utility screening, dumpster enclosures, etc. Program Definitions Program Administrator The Program Administrator shall be the City of Farmington Economic Development Authority, 430 Third Street, Farmington,MN 55024,phone 651-280-6820. Applicant Any commercial building zoned B-2 or B-3 within the downtown area(see attached map) seeking to obtain assistance under the terms of this program. 1 Building Official The Building Official for the program shall be a City of Farmington employee and shall provide plan review and technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished if required. Project Coordinator The Project Coordinator for the program shall be the Executive Director of the EDA. Target Area Commercial buildings zoned B-2 or B-3 in the downtown area as shown on the attached map. Eligible Improvements: Funds may be used for façade and exterior improvements for the front and rear of buildings including, but not limited to awnings,paint,tuck pointing, exterior lighting, decorative signage, windows, doors, gutters, accessibility improvements,permanent patios, utility screening, dumpster enclosures, etc. 11 ITT AireSpecial Conditions Historic Properties The City of Farmington is a Certified Local Government under the Historic Preservation Act. Each project submitted for review that is for a property determined eligible for designation or is a heritage landmark property will be reviewed as outlined in city code to receive a Certificate of Appropriateness. Data Privacy All information provided by applicants under the Downtown Façade Improvement Program shall be maintained in accordance with the Minnesota Data Practices Act. 2 Procedures Application Intake Applications are accepted on an ongoing basis and are reviewed based upon funds availability and in the order received. Applications will be reviewed for participation in the program based upon the following guidelines: 1. Whether the applicant has clear title to the property to be improved. Prior to project approval,the following will be ascertained: a. Title verification; b. All real estate taxes and any city fees or charges are current; c. All individuals having an ownership interest, including contract holders,have agreed in writing to join in the application; 2. The extent to which the project meets the program objectives; 3. The degree of the project's overall impact on the surrounding area. If necessary, applications competing for limited funds may be selected based upon these criteria. Property Inspections Upon determination that a property owner applying for rehabilitation assistance is eligible based on the program guidelines,the Building Official may conduct an inspection of the property to determine if the proposed improvements conform to City of Farmington building code standards. Scope of Work Upon completion of the initial inspection,the property owner shall provide a report or elevation drawing indicating any planned improvements. This report will be reviewed by the City of Farmington. Project Approval The final application will be approved by the Farmington EDA, following review by City of Farmington staff and recommendation of the Project Coordinator. Approval by the Economic Development Authority (EDA) The contract for work to be completed will be between the applicant and the contractor. Once the applicant has accepted a bid, staff will prepare the information for presentation to the EDA. Upon EDA approval, a Grant Agreement will be signed by the applicant and a designated city official. This agreement will outline the terms and conditions of the project, including the city's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed Upon approval of the work to be done, and obtaining the required permits,the contractor will normally have six (6)months in which to complete the awarded contract. If construction work does not begin within 90 days of the award of contract,the Grant Agreement is null and void; however,the applicant may apply for one extension if necessary. The length of the extension will be determined on a case-by-case basis. 3 Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. In the event of a dispute between the owner and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be resolved in accordance with applicable state law. EDA funds shall not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Farmington, the Farmington EDA, employees, and officials from any damages or liability arising from, or occurring as a result of,the activities funded through this program. EDA Payment All EDA funds will be disbursed by the EDA upon authorization by the owner and the City of Farmington. Payments will be made only after all work has been completed according to the authorized scope of work, and has been accepted by the owner. Funds will be released once all improvements are completed to the satisfaction of the city Building Official and final project inspection by the Project Coordinator. Payment may be made directly to the contractor or in reimbursement to the owner, upon presentation of paid receipts for approved work to the Project Coordinator. Appeals Process Appeals concerning eligibility for the Downtown Facade Improvement Program or the proposed improvements shall be made in writing and addressed to the Project Coordinator. The coordinator will contact the applicant and attempt to rectify any concerns.A written response will be made within fifteen(15) days. 4 tti , ,,I 1."It...---i.,.......,'•,,,,,..L.,,, , . , •-•-•-•-•-•-•-•1 : Lt, , .. • ••t• ti,1 1 1 • 8-1 ,,, -•-•-•-k .,- .-„.....,..: Lindert St 1 i•o• _ , i n a 311 tutoe e R-2 , -,44-',.,--;.'14-'''.' , 1 ,;$1.••• i r -• • R-1 .. willow St ,1-1 ' 13-1 . - P,ne St Pine St i z Ell.' I , 1 i ---- .._ . 1 111th Mam St . _.-. _ .-- r R-T - ;ill IIIL 1 R-T ,....,.. L____ L R-T 11.11 11111 -, 1 0 Elm St > tit Mist.. *—.."."--":_r.."-"--c—.....2446," "".Z.."% C.."c ' , ,,, .1 Kt <45 ‘,,,,vtlet,o,,,•1 : c4 Ti • , I'V-..;. " 1•C---------1 ' t Oak St __ v 1 , , 1 . I 1 + , I It' I t mi.. .r__+____ 1 .'.'r• i _I , [ , ,- ,to , ,,,, , s p ru_ce_s t s.ruce S t -7 ,1.`, ,:t. I + 1 1 , L.,._ .! - ----, pow ------] i 1 ; 1- I I ' al iiiii 1 . I i . ,,` R-T I 1 , i I • .. 1 I ---- VYffilnYLS1 , .4 Walnut St , -1 I 1 , Ill, i [ I ' R-5 , 1 . , I , i 1 • -- 7- I. , . .. 1 1 . = f 1 1 ; . .1 i 1 . ..,1 : 1041twr • I I I I ti•-.7`..! , ' ii 1..i 4. 4. 1 1 , Il R-D I R-3 Maple pt_ 1 I 1 ' 1 R-2 u- -I b, R-5 '121 I ..,:: Beech St " ,..-, 1_ _ t----- c 27,, 1,1,-i -- . 11-1 P/OS R-1 43 IIIIIIIIII Beech St 5 Downtown Façade Improvement Program FARMINGTON Grant Application APPLICANT INFORMATION NAME OF APPLICANT(S) Pci., Ht;Ws BUILDING OWNER TENANT h/ i/ kk;la Oft ADDRESS ADDRESS 3 ( S T ; CITY,STATE,ZIP CITY, STATE,ZIP MN SSCIl'1 PHONE PHONE EMAIL EMAIL BUSINESS INFORMATION LEGAL NAME OF BUSINESS lit.;0:6 Pfare4F41 its ADDRESS 2911,;.04 CITY,STATE,ZIP ft,—;y00 M At, S5tq I BUSINESS PHONE FEDERAL TAX ID# DATE ESTABLISHED Al Ay 2f p0"1 • OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE: NAME elm IIe;UGt!„ INTEREST rt'1$t? NAME INTEREST NAME INTEREST 5 PROPERTY INFORMATION ESTIMATED DATE OF BUILDING CONSTRUCTION � l 2°11 HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? AP PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: MRsoen/ wd�w: 1111.1111111111111111111. ESTIMATED PROJECT COSTS EXTERIOR/FAcADE ESTIMATED COST y� V ELECTRICAL ESTIMATED COST NI 04�. TOTAL ESTIMATED COST 'syr . 6 N. FUNDING INFORMATION A 1:1 match is required by the applicant. For every dollar contributed to funding eligible project costs by the Downtown Façade Improvement Program,the applicant must contribute at least one dollar.The amount of grant to be awarded shall be$1,500 up to$10,000 according to the scale. _ TOTAL GRANT AMOUNT REQUESTED$ ?.a°? ($1,500 up to$10,000 according to the scale) Ow_ boo fit. itila3Pq APPLICANT FUNDS a o, >�?3 "� -t 9iOF h r ft CA -e-l' iia,. 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. UWe 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. APPLICA � 074/21W . —"""' li _... 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 8 minimmir IMill' gF III h ultine d, TOOl BID 2019: CONSTRUCTION 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 Heikkila 651460.8359 09.06.2019 Address: Job Name: 349 3'd 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 3rd 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 1 877 r* `+ xM e` a. v r 4� t M ate. . ,a' t: • . A ' ' 4 - --- ' --i k- --' . .. 1-11. ; ., ,i„., ., . -.!. . . 14::....,- 1 , , ... . i, •:, '1, .. . „ . ,.. , ,, ..,.._ i) -r.ws�� r<c, tj 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. The downtown is scattered with seemingly empty buildings waiting for r occupancy. But,the Fletcher building has been attacting clients from other cities for 15 years. The studio was once selected as one of the N "_a i , " :+ `` y• ti top 20"go-to"photographers in the state by"The Knot', a nation-wide wedding magazine. Kii r 01"._I 147" tl—ttikIllt't—ttlikt 111 Tilliq gia,1-NNW 3 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 ,. F- ' a# A �e '4,14.. ' � , 2.4; ,:e1„, r . # , � 1....'1.:t....4. #w ,` fir - n ` a.s, #� a"44.;01.1'F'4%'114,'':'k4 4 , Y " , fi' kk x AA+ iY �r , �,y4.1 4t` , : , 4. ,�, ;4 # L `1� +# i ` e ro4 ' 't' 'x a4 a 4. e ` 1= ms \. .* / �Pr( f'f tri t � A=.:" $ ill ,i t iev I P. y ( i' I _ _.- —.—._ ___ � t- R { inplu t 4 1, u 1 • ` ri VA __'. 1 *RIF S'S- ++• 'C ) 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? r 'e:� rp , mi f . , A t +. r 0.L^• Z'- '. 4 f _ , ' '1• ' ' !� • ,.s , • ' . 1 - , -t, —te. , 41,v-..., ,i, ..." • 1 :Yi• ps L.:-. { • it_ .......:0T. ,,,,, �uf: I 1 ' ii, t r -_ .' t ' " 3WI 1 r/ -1, ' 14 ,M..`n �"y..wi•, w y / .�'4♦ • Aryl `-: Stopping the Bleeding 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• -. + - - - Brick, Stone, Terra Cotta, Concrete, Adobe, Stucco and Mortar Building Exterior Mason Identify I Protect I Repair I Replace I Hissing Feature I Alterations/Additions Standards t uldddnfgl ' !!' "�' rT rr,,c The longevity and ''J x f �^' '� sir}�i 14 Masonry i! _..°'� rt'r >IIA+ tk Woad appearance of a masonry —.. .,.., 4 _ . __ wall is dependent upon the _ �— Metals size of the individual units = ,� Roofs and the mortar. '- . 'irh Windows - rit Entrances/Porches Stone is one of the more Storefronts lasting of masonry building materials and has been used `' Structural Systems throughout the history of SMechanical SystemsrtenEshes 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 NewAddltIons fired.The quality of brick depended on the type of clay available and the brick- Accessibility making techniques; by the 1870s--with the perfection of an extrusion process-- Health!Safety 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, ,rte, -- —r--_� _ '*"1:7.-' door pediments,steps, and columns; '"'"fst�.rfi '''':1� ., t���� � and details such as tooling and v. �" ' ;I i bonding patterns,coatings,and color. Materials and craftsmanship illustrated in stone wall. not recommended -s=•- - 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 likik recommended . - ,t l a... Protecting and maintaining masonry by ( providing proper drainage so that water does not stand on flat, horizontal = surfaces or accumulate in curved decorative features. i ,r Cleaning masonry only when necessary to halt deterioration or remove heavy AIL soiling. ` I Carrying out masonry surface cleaning 0 ' '' tests after it has been determined that 1..0; .<� . , 4 . • V )` L such cleaning is appropriate.Tests \ • l� - ' ' ''' should be observed over a sufficient period of time so that both the immediate ' . ''`:'` • and the long range effects are known to " �? ., enable selection of the gentlest method _ .....,,,_.1 possible. • � fi 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 :�s to pj '' Cleaning masonry surfaces with the gentlest + method possible,such as low pressure water and , �1, detergents, using natural bristle brushes. - �. Inspecting painted masonry surfaces to determine whether repainting is necessary. , ,t r Removing damaged or deteriorated paint only to the next sound layer using the gentlest method possible(e.g., handscraping) prior to repainting. ' . -`.r; Applying compatible paint coating systems following proper surface preparation. ,; Yr ft., s„j Repainting with colors that are historically r":' .' i appropriate to the building and district. _ r ,_ r ' = ' k Evaluating the overall condition of the masonry to + ” • 1 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 dry or wet grit or other *Pr abrasives. These methods of cleaning permanently erode the surface of the material and accelerate deterioration. ' ,i. Using a cleaning method that involves ` rt-. - water or liquid chemical solutions i ,,,,,,,s4" when there is any possibility of .F 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 f; Duplicating old mortar joints in width and in joint profile. Repairing stucco by removing the #04 et- damaged material and patching with new stucco that duplicates the old in ,•, 1. n strength, composition,color,and $' texture. Using mud plaster as a surface coating over unfired, unstabilized • adobe because the mud plaster will r 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 MTIIIIMIIIIIRM prototypes such as terra-cotta brackets or stone balusters. `++� ... Applying new or non-historic surface treatments such as water-repellent coatings to masonry , .. 7:-,i1., only after repointing and only if masonry repairs ' --:;t"'.---.431i!—w ��� _ , have failed to arrest water penetration problems. i6 Replacement stones tooled to match original. not -- 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. - Repointing with mortar of high portland -,- .1 1,_ cement content(unless it is the content • of the historic mortar). This can often - create a bond that is stronger than the ... %"' - historic material and can cause damage r. 4 f ' - -- as a result of the differing coefficient of � ''a : i f , I expansion and the differing porosity of f : i I ..,: the material and the mortar. 0. ""'—" .,-" 4,— Repointing with a synthetic caulking compound. I____ V. Using a"scrub"coating technique to t' ' " 4 repoint instead of traditional repointing methods. ., Changing the width or joint profile when { µ repointing. _ii --- Loss of the historic character due to insensitive repainting. 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. M , Home I 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 as�rlru ® FarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Business Retention & Expansion Update DATE: January 30, 2020 INTRODUCTION/DISCUSSION A BR&E framework was approved at the November 21, 2019 EDA meeting. A motion was also made to create a BR&E subcommittee composed of three EDA members so the topic of BR&E did not take over the EDA agenda each month. This multi-tier approach will allow the EDA to remain the top tier policy makers,the BR&E subcommittee will be the middle tier BR&E program managers, and the bottom tier will be our business visitors. A pilot BR&E program has been approved by the BR&E subcommittee in order to make the most efficient use of time and resources. This pilot BR&E program will include participation from three Farmington businesses to ensure the BR&E framework has the ability to evolve into a sustainable, active, and long- term program.The pilot program will allow us to do a small scale implementation to identify and resolve any issues and roadblocks prior to implementing a full scale BR&E program.This will allow unforeseen negative impacts to be limited to a small group of businesses and business visitors.The logistics of the pilot program are currently being worked on and finalized before we can start our initial business visits. More information will be provided once additional decisions have been made. ACTION REQUESTED None-This is intended for informational purposes only. 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: EDA Programs and Financing Discussion DATE: January 30, 2020 INTRODUCTION/DISCUSSION At the October meeting,the EDA received a comprehensive update on its various programs,funding sources, and how policy changes to our programs directly impact the EDA's fund balance. It was requested that we revisit this topic in early 2020 to allow for more direct and strategic communication with the City Council regarding upcoming projects and potential funding requests as a part of the annual budgeting process. Staff has included a fund balance snapshot along with various program information below to continue the discussion on EDA funding.This topic is directly related to the last objective listed within the EDA's 2019-2021 Strategic Plan for Economic Development: "Objective: Conduct the business of the EDA to maximize its effectiveness. Tactics—1. Provide consistent information to the EDA about its financial condition and existing obligations." As the EDA discusses funding for current programs and opportunities for new initiatives, it is important to have a comprehensive understanding of how the EDA receives and utilizes its finances. As noted in our 2019-2021 Strategic Plan,the city's Finance Director provides the EDA with a financial update annually every March. Having this discussion now, will allow us to be better prepared to respond to that update as we set our priorities for 2020. Revenues and Expenditures Revenues The EDA typically plans programs and operations based on an anticipated operating transfer of general fund dollars via the City Council. Other unrestricted revenue includes any interest earned on investments of the fund balance. Restricted revenues include outside funding such as CDBG dollars,grants, or other special funds. Additional revenue sources available to the EDA include the possibility of an HRA/EDA tax levy. Attached is a memo from our municipal financial advisors outlining two levy types available to the EDA as a potential source of future funding. General fund allocation Historically the EDA has received its funding directly from the city's general fund via the City Council as part of the annual budgeting process. This amount is typically$40,000 transferred in 1/12 payments over the course of the calendar year. Expenditures/Programming Facade Improvement Grant Program Annual allocation of$20,000 since created in late 2016. Site Readiness Program Annual allocation of$20,000 for grants up to$5,000 each for qualified commercial/industrial site preparation. Created in late 2017,this program has not yet been utilized and is a candidate for additional promotion. Commercial Rehabilitation Grant Program Utilizes federal Community Development Block Grant dollars allocated to the city via the Dakota County CDA.These dollars are not included in the EDA budget, but we designate the amount available(currently approximately$27,000)to cash flow any obligations prior to reimbursement.The amount available can change based on the age of the funds and the federally designated activity approved via the CDA. Open to Business Program The City of Farmington currently contributes $5,513 annually to this program operated via the Dakota County CDA to support small and emerging businesses.The current contract runs through 2020. General Operations We typically allocate approximately$20,000 annually to cover items such as legal, IT, professional development, programming expenses etc. Other appropriations Within the EDA's fund balance,the EDA "earmarked" $100,000 in mid-2018 for the creation of a Rambling River Center Plaza.This project has not yet been scheduled for implementation. "Wish List" Unfunded or yet to be created programs included in adopted plans. Some of these items include a Highway 3 improvement plan similar to the Downtown Facade Improvement program,wayfinding improvements noted in the Downtown Redevelopment Plan, potential property acquisition to further either the Downtown Redevelopment Plan or Highway 3 Corridor Plan goals, and other infrastructure improvements or cost participation necessary to remove barriers to redeveloping key properties. By far the largest category,this is ultimately where the EDA could spend a significant amount of time identifying new ideas that translate into additional budget requests or demand for outside funding. Fund Balance Unlike city department budgets,the EDA operates via a "fund balance"which allows unspent dollars to be carried over annually for additional programming and obligations. Due to multiple variables within the EDA's fund balance, it is often a complex answer to the question of how much money is available for new initiatives or to sustain existing programs within the EDA. If some programs are underutilized in a calendar year,funds can be utilized for additional activities or longer- term goals. If other programs are being drawn down quickly,the EDA can consider additional funding to meet demand for the following year. Additionally, new priorities or opportunities can emerge within the calendar year that weren't planned as a part of our annual review.There should also be consideration for maintaining a certain level of reserve for these"opportunity"costs. Based on the previously discussed financial presentation projecting our end of year balance, it is suggested to note approximately$50,000 of the EDA's fund balance is considered uncommitted.This can be a starting point for the EDA to discuss its future financing needs for implementation of our economic development priorities. ACTION REQUESTED Discuss the EDA's programs for promoting economic development as it relates to current or additional funding opportunities. ATTACHMENTS: Type Description D Exhibit HRA/EDA Levy Information Memo � a NORTHLAND $ PUBLIC FINANCE MEMORANDUM To: Adam Kienberger,City of Farmington From: Tammy Omdal Date: August 13,2019 Re: I IRA/EDA Tax Levies This memorandum is a follow-up to our recent meeting and provides you with an explanation of the authority for the two types of levies that maybe available to the City of Farmington Economic Development Authority("FDA").The two levies are commonly referred to as the"HRA levy"and the"EDA levy,"and are described below. 1. HRA levy Under Minnesota Statutes,Sections 469.091 an economic development authority has all the powers of a housing and redevelopment authority under Sections 469.001 to 469.047(the"HRA Act"),unless those powers are limited by the City's enabling resolution that established the authority.The enabling resolution that established the Farmington EDA should be reviewed to confirm any limitations of those powers.If there are no limitations,the EDA may essentially act as a housing and redevelopment authority and exercise all powers under the HRA Act,as well as exercising its economic development powers under Minnesota Statutes,Sections 469.090 to 469.1081(the"EDA Act"). Under Section 469.033 of the HRA Act,an HRA may levy a tax on its area of operation for the purposes authorized under the HRA Act,subject to consent by the city council. The levy may not exceed 0.0185%of the estimated market value in the City.The"area of operation"of the authority is the boundaries of the City. If the Farmington EDA has all the powers of a housing and redevelopment authority,the EDA may levy the tax authorized under Section 469.033,subject to the same limitations and procedures that would apply if it were levied by a housing and redevelopment authority. The HRA levy has two important features. First,the proceeds must be used only"for the purposes of[the HRA Act]."Minnesota Statutes,Section 469.033,subd.6.Those purposes,broadly,include redevelopment to correct or prevent blight,and development of or assistance to housing for low-or moderate-income persons. Second,the HRA levy is technically raised by the EDA(using its HRA Act powers),with approval by the City Council. The levy amount is above and beyond any levy limits that may apply to the City; the only limit is the 0.0185%of estimated market value in the City referenced above. 150 South Fifth Street,Suite 3300,Minneapolis,MN 55402 Main(612)851-5900/Direct:(612)851-4964/Email:tomdal@northlandsecurities.com Member FINRA and SIPC I Registered with SEC and MSRB HRA/EDA Levies August 13,2019 Page 2 2. EDA levy Section 469.107 of the EDA Act provides separate authority for a tax levy to benefit the EDA.Under this provision,the City levies the tax at the request of the EDA. The amount levied is limited to 0.01813%of estimated market value in the City(a higher levy is permissible but subject to reverse referendum). This levy is different from the HRA levy in two respects.First,it is made by the City for the benefit of the EDA,at the EDA's request. The amount is within the City's overall levy limits.As such,it is essentially the same as an appropriation to the EDA from the City's general funds. Second,the statute does not expressly limit the proceeds to any particular use,but the implication is that they may be used for any activity an EDA is authorized to carry out under the EDA Act.Those uses include housing and redevelopment activities under the HRA Act,but also broader economic development activities. There are certain steps and process required with the initial establishment and annual certification of an HRA levy and/or EDA levy that are not described in this memorandum. If you have questions on the information contained within this memorandum or other follow-up items,please let us know. 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: City Council Update DATE: January 30, 2020 INTRODUCTION/DISCUSSION This is 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 0430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 © FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: January Director's Report DATE: January 30, 2020 INTRODUCTION/DISCUSSION Realtor Rally I n partnership with ISD 192, both Interim Superintendent Jason Berg and I presented to a group of approximately 25 area real estate professionals on January 22. Our messages highlighted the assets and activities within Farmington that real estate professionals can use to promote the Farmington real estate market. An event flyer is attached. Farmington Expo I attended the annual Farmington Expo this past Saturday and took the opportunity to engage with many area businesses, residents, and elected officials. Thank you to all those who attended, and for the work you do representing the community via the EDA. EDAM Winter Conference Kalley and I attended the EDAM winter conference last Thursday at Friday in Bloomington. This conference of over 250 economic development practitioners and industry leaders contained sessions ranging from smart cities,to downtown revitalization strategies.Takeaways from this conference will be incorporated into upcoming EDA discussions as part my department's professional development strategy. 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. Related Articles Open to Business 2019 Q4 Report DEED Employment Report NEXT MEETING Our next regular is scheduled for February 27. This meeting is regularly designated as the EDA's annual organizational meeting. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Exhibit Farmington At A Glance D Exhibit Open to Business Q4 Report D Exhibit 2019-2021 Strategic Plan for Economic Development ❑ Exhibit Strategic Plan Summary and Status Report CITY OF FARMINGTON I." %......0 ‘ * ._.... ...„ _ __ , .. Population: 23,165 , ,..„ Size: 14.87 sq. miles Population change City streets: 85 miles , since 2010: 6.3% -•• , ‘ , . • • a ,,. • MM.,, . . ,1,-Ir.:-.4.-,,„---;',1:,,''Iii,,,- Households with 2019 Median house ,it--...14,- ' . :.,_,,!:;-,,./.. children: 47% price: 271,500 *,,- -7,, •-=-44t. ... ,yf„ . „.....-Nit. -„,:f. ..,.....,,,,,..,,-,,fr• .1:44-,:::-17.„,°4,47.1.74:':',.:''--'`;1'1";'...'-40r, ''' 7.;7.. .":4 Homeowners: 85% ,. .p.w„... ,ttv. „.4.4.6),.._ - --;,-.27.:2 11 .. *, I.mi. 111 II t* ', Graduation rate: 97% .. Parks, Recreation & Preserves: 811 acres t . ...,. On Top 10 Safest City founded: 1872 Communities 651-280-6800 • FarmingtonMN.gov • 430 Third St. OPEN TO BUSINESS Updates DAKOTA COUNTY Open To Business 1/1/2019—12/31/2019 Clients Served 135 Business Stage: Pre Start Planning 50 Industry Segment: Start Up 27 Retail 24 Existing Business, Opportunity 34 Service 50 Existing Business, Challenged 24 Food 32 Health/Fitness 12 Program Hours: Manufacturing 4 (Includes Direct Client Hours, Program Outreach& Construction/Real Estate 9 Marketing, Public Events/City Meetings,Data Collection and Administration) Technology 2 Wholesale/Distribution 2 Client Direct TA by Quarter: Client City: Residence Business 1St QTR 274.25 Apple Valley 13 11 2nd QTR 301.60 Burnsville 20 27 3rd QTR 212.75 Eagan 22 19 4th QTR 150.25 Farmington 9 7 Hastings 5 6 Financing: Inver Grove Heights 9 9 LoansLakeville 13 17 Approved Mendota Heights 4 2 Number 6 Rosemount 6 3 02B Direct Lending $ 535,000 S. St. Paul 3 8 Leveraged $ 5,751,965 W. St. Paul 5 6 (Bank/Owner Equity/Other Outside Financing) Referral Source: Municipality 61 Other Entrepreneur 8 Bank Referral 27 Friends/Family 6 Other 23 Web 10 BUILDING OPPORTUNITY MCCD9 Metropolitan Consortium of Community Developers Financing to Businesses Located in Dakota County: Approved Financing: Business Type: Manufacturer Location: Burnsville Referred by: Bank Partner OTB Financing: $150,000 Other Financing: $3,200,000 Bank, $320,000 Equity Overview: Open to Business provided gap financing to preserve working capital and assist a new operator in purchasing the real estate and operations of an existing manufacturing business. Approved Financing: Business Type: Child Care Center Location: Burnsville Referred by: Bank Partner OTB Financing: $60,000 Other Financing: $839,000 Bank, $92,635 Equity Projected Jobs Created: 17 Overview: Clients have owned and operated a child care center in Wisconsin since 2011. The owners strive to keep as many toxins and chemicals as possible out of the center and also prepare all organic and all-natural food on site. With that success under their belt,the clients decided to bring their concept to the Twin Cities market. They purchased and renovated a vacant former child care center in Burnsville, with funding and support from 21st Century Bank, who reached out to Open to Business provide supplemental financing for working capital and ensured the project was able to move forward. Approved Financing: Business Type: Restaurant Location: Eagan Referred by: Web OTB Financing: $75,000 Other Financing: $217,500 Bank, $15,830 Equity Projected Jobs Created: 24 FTEs Overview: Long-time Minneapolis restaurateurs opening a new concept/location in Eagan. Client reached out to Open to Business looking for help in locating and securing a bank partner, and leveraging the program to support the project. O2B assisted with locating a suitable bank partner, assembling a complete loan package, and ultimately provided subordinate funding to fill an equity and collateral gap and make the project a reality. Approved Financing: Business Type: Restaurant Location: West St Paul Referred by: Bank OTB Financing: $100,000 Other Financing: $817,000 Bank, $370,000 Equity Projected Jobs Created: 2 Full-time, 20 Part-time Overview: Couple operating a longstanding Mendota Heights restaurant purchased a property in West St Paul in order to launch a new concept. The property required extensive renovation to be used as a restaurant-which the Client's bank was unable to fully provide-and reached out to Open to Business for assistance. 02B was able to approve subordinate Gap financing to allow the project to move forward. Financing to Dakota Residents Operating a Business Elsewhere: Approved Financing: Business Type: Gas/C-Store Location: Minneapolis (Burnsville Resident) Referred by: Bank Partner OTB Financing: $100,000 Other Financing: $1,100,000 Bank, $92,500 Equity Overview: Client purchased an existing Gas Station and C-Store business in 2011- leasing the property from the seller. Open to Business provided gap financing to assist the client in purchasing the commercial real-estate, and preserve the client's working capital. Approved Financing: Business Type: Car Wash Location: St Paul (Mendota Heights Resident) Referred by: Bank Partner OTB Financing: $50,000 Other Financing: Overview: Client approached their bank for assistance in making leasehold improvements that would allow the business to increase its capacity, and by extension its revenue.The Business leases its facilities, and the bank was unable to assist at this time due to a lack or collateral and referred the client to Open to Business. 02B was able to approve the current need and is working with the client to pursue a larger package to purchase the real estate. Strategic Plan 2019 - 2021 Farmington Economic Development Authority x d d t s `"�' January 2019 '-tea NORTHLAND PUBLIC FINANCE EDA Strategic Plan 2019-2021 CONTENTS Contents 1 Introduction 2 Context 3 EDA Powers 3 Comprehensive Plan 3 City Government 4 EDA Resources 5 Strategic Plan 6 Objective: Expand and Diversify the Tax Base 6 Objective: Encourage development that brings additional goods and services to Farmington 11 Objective: Promote the economic and physical health of older sections of Farmington....12 Objective: Effectively communicate information about the EDA within City government,to the community and to people and businesses outside of Farmington. 13 Objective: Conduct the business of the EDA to maximize its effectiveness 14 January 2019 EDA Strategic Plan 2019-2021 2 INTRODUCTION This document presents the Strategic Plan for the Economic Development Authority(EDA) of the City of Farmington.The EDA Strategic Plan serves several purposes: • The plan articulates the vision,mission and fundamental principles that guide decision making and actions for the EDA. • The plan provides a framework for identifying potential roles for the EDA,prioritizing use of resources and periodically reviewing actions taken by the EDA. • The plan serves as a tool for communicating information about the EDA to the city council,city departments and advisory boards,partner organizations in the economic development community and Farmington residents and businesses. The Strategic Plan focuses on the years 2019 through 2021. Vision Statement The Economic Development Authority's vision is to improve the economic vitality of the City of Farmington and to enhance the overall quality of life by attracting and retaining businesses, creating partnerships,fostering employment opportunities, promoting workforce housing, business growth, and expanding the tax base through development and redevelopment. mmigiummommemi 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 Council City Development Administrator Director Residents Business 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 '1 100.00 ra 80.00 :, , 1- 60.00 40.00 IiuuIuIIl II I 11 111 111 Qa RI) �a�•\��h �'4\ �`o� �q� �(z>4 he o���\Ja\�e��a�eJ��e '"'‘<\ r �o <<4te. ao<a 'o PQQ 4`e' c• ■City Rate All Others Rate Figure 1 Tax base is a key factor in a higher tax rate. A lower tax base means that the city must tax at a higher rate to generate revenue needed to operate the city.A comparison with other Dakota County cities provides some perspective on Farmington's tax base.Figure 2 shows total Pay January 2019 EDA Strategic Plan 2019-2021 7 2019 Taxable Market Value by property classification. Figure 3 compares the distribution of Taxable Market Value among the property classifications. Taxable Market Value Taxes Payable 2019 8,000,000,000 7,000,000,000 6,000,000,000 •All Other 5,000,000,000 ■Agriculture 4,000,000,000 Industrial 3,000,000,000 ■Commercial 2,000,000,000 ■Apartments 1,000,000,000 II Residential Farmington Lakeville Rosemount Hastings Apple Valley Figure 2 Taxable Market Value Taxes Payable 2019 100% iagazugamiz j66666,4 6. - 90% ■ ■ 70% ■ ■ ■ 70/o ■All Other 60% ■ ■ ■ 1111 IIAgriculture 50% 1111 1111 Industrial 40% ■ 1111 ■ ■Commercial 30% ■ ■ 1111 ■Apartments 20% 1111 ■ ■ ■Residential 10% ■ ■ ■ ■ 0% Farmington Lakeville Rosemount Hastings Apple Valley Figure 3 January 2019 EDA Strategic Plan 2019-2021 8 • Hastings has less Taxable Value than Farmington($1.52 billion to$1.74 billion). However,the portion of the total tax base in commercial and industrial property is more than double in Hastings(11%)in comparison to Farmington(5%). • The commercial/industrial share of the tax base in the comparison cities ranges from 9.66% in Apple Valley to 11.24% in Rosemount. • Rosemount provides a good contrast to Farmington. The cities have similar populations (Farmington 22,421 -Rosemount 23,956),but Farmington has 29% less tax base.Total Taxable Market Value per capita in Farmington is$87,866 and$116,100 in Rosemount. Growing and diversifying the tax base has a variety of benefits.A growing tax base gives the city more flexibility in funding services and capital improvements. This flexibility would likely extend to the EDA budget.The demands for operating revenues may limit the ability to lower the tax rate,but a growing tax base lessens the need to raise rates. Growing the tax base is one of the only means available to the city to promote reductions in other parts of the total tax rate. A diversified tax base changes the impacts of economic downturns as value changes vary among property types. Commercial and industrial development make different use of city services than residential with the potential for comparably less pressure to increase services and spending. EDA efforts to grow the tax base must be done thoughtfully and strategically.The Minnesota property tax system affects the ability of the city to realize growth in the tax base from new development.40% of all new commercial-industrial value goes into the Fiscal Disparities Pool and is not available for local taxation. The use of tax increment financing(TIF) or tax abatement defers the benefits of new tax base until the financial assistance ends.Property class rates set by the Legislature convert the Assessor's Estimated Market Value to Tax Capacity(taxable)value at different rates. Figure 4 illustrates these points.This chart compares the Tax Capacity value available to the city (and other taxing jurisdictions)from alternative development of 100 acres. January 2019 �� EDA Strategic Plan 2019-2021 9 Tax Capacity From Alternative Land Uses Industrial Retail Single Townhome Acres 100 100 100 100 Lot Coverage/Density 30% 30% 3 6 Development(SF or Units) 1,306,800 1,306,800 300 600 EMV per SF or Unit 65 125 330,000 330,000 EMV 84,942,000 163,350,000 99,000,000 198,000,000 Tax Capacity 1,698,090 3,266,250 990,000 1,980,000 Fiscal Disparities 40% 40% 0% 0% Net Local Tax Capacity 1,018,854 1,959,750 990,000 1,980,000 2,500,000 2,000,000 v m 1,500,000 u m a CO U X 1,000,000 1 500,000 0 Industrial Retail Single Townhome Figure 4 Expansion of the tax base also comes from within.The Economic Development chapter of the Comprehensive Plan notes that"research from numerous sources shows that existing businesses create 60%-90% of all new economic growth in a community". A focus on local businesses is a more efficient means of expanding the tax base. Resources applied to business expansion are more likely to yield returns than using the same resources to compete with other cities. Resources are applied to businesses already in Farmington rather than competing with January 2019 -� EDA Strategic Plan 2019-2021 10 other cities.The use of financial incentives (if needed)is typically lower and more closely aligned with project need. Tactics 1. Create and maintain strong relationships and lines of communication with local business to identify opportunities for the EDA to enhance success and encourage expansion. 2. Be prepared to receive and effectively respond to inquiries about locating businesses in Farmington. 3. Make use of tax increment financing and tax abatement,pursuant to city policies,to achieve the objectives of the Strategic Plan. 4. Use tax increment financing and tax abatement only when the benefits received from the development outweigh the deferred tax base. 2019 Action Plan 1. Create and conduct a comprehensive business needs/assessment survey. 2. Review and update(as needed)economic development promotional materials. January 2019 EDA Strategic Plan 2019-2021 7 l Objective: Encourage development that brings additional goods and services to Farmington Building and maintaining a strong core of commercial development is important to Farmington. When necessary goods and services are not available locally,residents travel to other cities to shop.These trips often result in additional shopping that could have occurred in Farmington. The EDA seeks to encourage commercial development that reduces this out-migration and complements existing businesses. The EDA has limited control over the type and pace of commercial development. Market forces tend to be the primary force in commercial growth. In that regard,commercial development and job growth are directly related. New,well-paying jobs located in Farmington may produce the demand for new housing.These new"rooftops" create the market sought by commercial development. The EDA can facilitate commercial development by providing desirable business districts. Farmington has a history of creating community plans for such business districts.Plans for Vermillion River Crossing and Downtown Farmington provide the framework for public and private investment. In 2019,the city will be completing a plan for development in the Highway 3 Corridor.The ongoing implementation of these plans is an important EDA objective. Tactics 1. Attract new businesses that produce jobs that are likely to create or retain households and expand the local market for new commercial development. 2. Prepare and implement plans that provide desirable locations for new commercial development. 2019 Action Plan 1. Continue to work with brokers and land owners to attract developments to Vermillion River Crossings area. 2. Create ongoing means of communicating actions related to the implementation of the Downtown Redevelopment Plan to the EDA. 3. Play an active role in the completion of the Highway 3 Corridor Study and seek effective implementation strategies. January 2019 EDA Strategic Plan 2019-2021 12 Objective: Promote the economic and physical health of older sections of Farmington. One of the Economic Development Goals of the Comprehensive Plan is"redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas". In reality,there are two aspects to redevelopment.The most effective strategy is to promote the economic and physical health of the community to avoid the need for redevelopment. If the need for redevelopment exists,however,it is important to prevent blighting conditions to spread to other properties. The EDA has taken a proactive approach to redevelopment by creating plans for the Downtown and the Highway 3 Corridor.These plans provide a framework for public and private investment.Implementation of these plans is not the sole responsibility of the EDA.The EDA must coordinate its efforts with the city council,planning commission and other stakeholders. Tactics 1. Engage on a consistent basis with the planning commission to share goals and develop strategies. 2. Support the outcomes and implementation of the Highway 3 Corridor Plan. 3. Review and promote existing programs that target key areas. 2019 Action Plan 1. Schedule quarterly joint work sessions with the planning commission and semi-annual work sessions with the city council to align priorities. 2. Complete and identify initial implementation steps of the Highway 3 Corridor Plan. 3. Meet with Dakota County CDA staff(or invite to EDA meeting)to discuss programs. January 2019 EDA Strategic Plan 2019-2021 13 Objective: Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington. Communication is an essential function of the EDA. Communication with the city council promotes collaboration on shared objectives and builds the foundation for the financial resources required by the EDA. Communication with the community explains the work of the EDA,highlights the positive impact on the community and offsets potential misinformation. Communication informs the business community,both within and outside of the community, about the opportunities to do business in Farmington and the assistance available from the EDA. The city's website is the most important communication tool for the EDA.The website is the place people look for information about the EDA.Farmington's online presence for economic development should be guided by several factors: • Information about the EDA and economic development in Farmington must be easy to find on the website. • The information on the website must be useful. • The form and content of the pages devoted to economic development should convey a positive message that creates interest in Farmington. Tactics 1. Utilize the city's website as the primary point of information about the EDA and economic development in Farmington. 2. Ensure that the website contains useful information for businesses evaluating potential development in Farmington. 3. Make use of the newsletter and other ongoing city communications to provide information about the EDA. 2019 Action Plan 1. Review other websites to identify elements that could be incorporated into Farmington's website. 2. Review and enhance the city's webpage(s)related to Economic Development. 3. Develop one or more new communications tools to relay the messages and work of the EDA. 4. Shift the monthly"Director's Report" in the EDA packet to a more public-facing newsletter. 5. Develop a social media strategy to promote the work of the EDA. January 2019 EDA Strategic Plan 2019-2021 14 Objective: Conduct the business of the EDA to maximize its effectiveness. While this objective seems obvious,it is important to make it a stated objective of the Strategic Plan.The EDA operates with limited resources in terms of funding,staff time and board responsibilities.All decision-making must consider the effective use of these limited resources. Tactics 1. Provide consistent information to the EDA about its financial condition and existing obligations. 2. Provide the EDA with consistent updates on the status of the action plans for the Strategic Plan and other ongoing initiatives of the EDA. 3. Annually update the action plans in the Strategic Plan. 2019 Action Plan 1. Provide annual comprehensive review of the EDA's finances in March. 2. Develop a standardized template for providing specific project updates. 3. Explore ways to enhance the effectiveness of monthly board meetings. 4. Create a process to annually review and update action plans in the Strategic Plan. 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