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HomeMy WebLinkAbout04-23-20 CITY OF Meeting Location: FARMINGTON Farmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA April 23, 2020 6:00 PM Hannah Simmons, Chair; Steve Wilson, Vice-Chair Katie Bernhjelm, Ryan Butterfield,lake Cordes, Robyn Craig Steven Hudlemeyer 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENTAGENDA (a) Approve Meeting Minutes (February 27, 2020, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) 345 Third Street Fletcher Building Facade Improvement Grant Application (b) Short-Term Recovery Program Ideas 9. DIRECTOR'S REPORT (a) April Director's Report 10. ADJOURN CITY OF © 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 O 9!TZ:;; Farmington MN.gov TO: Economic Development Authority FROM: Cynthia Muller,Administrative Assistant SUBJECT: Approve Meeting Minutes(February 27, 2020, Regular Meeting) DATE: April 23, 2020 INTRODUCTIONIDISCUSSION Please find attached the draft meeting minutes from the February 27, 2020, EDA meeting. ACTION REQUESTED Approve the February 27, 2020, EDA minutes. ATTACHMENTS: Type Description © Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting February 27, 2020 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:30 p.m. Members Present: Simmons,Bernhjelm, Cordes, Craig,Hudlemeyer, Wilson Members Absent: Butterfield Also Present: Adam Kienberger, Community Development Director; Kara Hildreth, Dakota County Tribune 2. PLEDGE OF ALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bernhjelm, second by Craig to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTSIPRESENTA TIONS 6. CONSENT AGENDA MOTION by Cordes, second by Craig to approve the Consent Agenda as follows: a) Approved Meeting Minutes (January 30,2020, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSIONITEMS a) Annual Organizational Matters Election of Officers—Hannah Simmons will continue as Chair and Steve Wilson as Vice-Chair. Meeting Schedule-Members agreed to eliminate the December EDA meeting. The meeting time was moved to 6:00 p.m. Acknowledge Official Newspaper—The official newspaper is the Dakota County Tribune. MOTION by Wilson, second by Bernhjelm to approve the EDA by-laws. APIF, MOTION CARRIED. MOTION by Bernhjelm, second by Cordes to continue with Hannah Simmons as Chair and Steve Wilson as Vice-chair. APIF, MOTION CARRIED. MOTION by Cordes, second by Wilson to cancel the December EDA meeting and move the meeting start time to 6:00 p.m. APIF,MOTION CARRIED. MOTION by Bernhjelm, second by Wilson to acknowledge the Dakota County Tribune as the official newspaper. APIF,MOTION CARRIED. EDA members were provided with information on the open meeting law. EDA Minutes(Regular) February 27,2020 Page 2 b) EDA Financing Program Ideas There is $50,000 of unprogrammed funds left in the EDA fund balance. Two options were presented which were to focus on redevelopment and property reinvestment and the other is public space improvements. The property reinvestment and redevelopment program was discussed first. It is available to all commercial and industrial areas. The program would have a focus on unutilized or underutilized sites. This program would focus on properties currently for sale or lease, recently acquired or those under dire need for rehabilitation. Funds could be used for building improvements, code deficiencies and helping aid barriers to redevelop the site. Improvements would need to be permanent and anchored to the site. A second option is public space improvement. This would focus on dedicating money annually or bi-annually to accomplish smaller projects in the Highway 3 Corridor Plan or the Downtown Redevelopment Plan. Projects could include wayfinding signage, bike racks,public seating, community garden, etc. A proposal would be submitted to the EDA for approval by city staff to accomplish an objective in an approved city plan. Funding would not be available for outside applicants. The purpose would be to show progress on adopted city plans. Staff asked the EDA to review any changes to these draft plans along with a title name for the public space program and provide direction to craft a program for approval. Staff reviewed the draft idea for redevelopment. This is intended to directly aid current property owners or future owners for key areas of the city, including downtown,the industrial park,highway 3 corridor, etc. The goal is to provide a new EDA funded program in order to positively impact,revitalize and reinvest in multiple areas throughout the city. This would provide opportunities to increase the tax base in commercial and industrial areas. An example for this program would be the Dakota Motors building. The guidelines mirror the downtown facade program. There are ten districts where this program could be used. Funding could include a large portion of the unprogrammed funds. With $50,000 in funding,we could have five projects with a$10,000 grant. Member Bernhjelm agreed with the$50,000 funding. Member Craig agreed we can ask for that amount, but it may need to be scaled back. Chair Simmons stated we have $50,000 unprogrammed currently so there are dollars available this year without asking the City Council. If the program is acceptable, we would ask for funding for next year. Staff explained if currently funded programs are not completely utilized, then we have additional funds we can use. This program is new in additional to what we already do. Member Bernhjelm felt this sends a message that we are trying to help our businesses. If it becomes as utilized as the downtown fagade grant, it will do a lot. She liked funding both of these programs from the City Council perspective because of the financing model of the EDA; that if the funds are not used,they are rolled over and we maintain that fund balance. If we need a bigger dollar amount toward a bigger project, it is something the City Council can tap into the EDA. It is also a great way to give recommendations to the City Council as to where our priorities lie. Member EDA Minutes(Regular) February 27,2020 Page 3 Wilson asked if we are looking at two different options or a blend of both. Members stated both. Member Bernhjelm stated especially the public space program because we can tick off a bunch of small projects that would be very visible. It doesn't rely on the City Council to make the decision. Member Craig felt that program will be more visible. The other program may not be as noticeable. She would like to see more funding go towards the public space program. She did not know how much the industrial areas will want something for this dollar amount. They would need a larger amount. We can put it out there for a year and see what happens. Chair Simmons noted we don't have to adhere to the same rigid guidelines that other programs do. She asked what amount members would like for funding. Members suggested not including the industrial park because of the funding amount required for that area. Member Bernhjelm suggested not picking areas and let the program go wide and let those apply who can use it. We are trying to attract all businesses. Member Wilson stated if we are talking about the EDA using funds for public space improvements,we could do that tonight. If we don't,then the entire $50,000 is available. If we are going to identify projects complimentary to highway 3 or downtown then designate $35,000 and $15,000 is left for everything else. Staff noted one thing to consider is balancing being good stewards of the tax dollars and at the same time what would we not want to see funded in one of our programs. Staff continued explaining the Property Reinvestment Program stating that the grant amount would be $1,500 to $10,000 with a 1:1 match for projects of$3,000 to $20,000+. The intent of the program is to leverage investment in commercial and industrial districts to foster property improvements and redevelopment growth. There could be a targeted objective within the program for highway 3 properties. Leaseholders would be eligible, however,the owner of the property must also join in the application. This program should stand on its own and fill gaps other programs aren't able to cover. The process to apply is the same as the downtown fagade program. Member Craig noticed SAC credits are included on the list of eligible improvements. Staff specifically added this because one hurdle faced by restaurants is a sewer area connection charge which are based on a Met Council formula and has to do with water usage. It is often a deterrent for restaurants to come to a community. Once entrepreneurs learn about the SAC fee it can be $20,000 for a start up cost. We could provide a sale or cost share for the city fee portion. Next the public space improvement program was discussed. This program would provide small victories outlined within the downtown redevelopment plan and the highway 3 corridor plan. The program is focused on providing tangible outcomes for all members of the public. This would be used for any public space within the city including right-of-way space to update current city signage and addition of wayfinding signs. An EDA fund balance of$10,000 annually could be set aside for projects. Funds not used can be rolled over and used for higher cost projects. A request for more funding can be made using internal EDA funds already in the budget or request funds through the City Council and outside sources. Staff explained it does not have to be limited to the plans and could also include parks. The program definitions are the same as the fagade improvement program. Applications would be accepted from the city annually or bi-annually and would be based on the following guidelines: EDA Minutes(Regular) February 27,2020 Page 4 1. Whether the project area is a public space and owned by the City of Farmington 2. The degree of the project's overall impact on the surrounding area 3. If the project is outlined in a city adopted plan The application would be approved by the EDA. Monthly project updates would be provided to the EDA. Member Bernhjelm liked this program because we are just dealing with ourselves. She would like to see projects approved by the end of the first quarter and then we have the rest of the year to do the project. Member Craig asked about the bike racks that we used to have. Staff explained they were removed for snow removal. Member Craig asked about the cost for wayfinding signs because she was trying to figure out what$10,000 could buy us. Staff stated when the City Council approved the downtown plan,at the same time they approved $5,000 to do the bike racks downtown. They cost about$5,000; typically$800- $900 each. Commercial grade furniture is in that ballpark. Member Bernhjelm recalled to light one of the entrance signs coming into the city was $5,000 for installation. Staff had an electrician look at the downtown EDA sign and were told we would be better off getting a new sign. Chair Simmons was hearing that$10,000 is a good start for funding. Member Wilson wanted a list of things and what they cost. Chair Simmons asked if this would be done this year and would we have a list at our next meeting? Staff felt it was not realistic to come back with project estimates for ten different things. If there is a desire to target a meeting this year to learn about costs we could do that. Member Bernhjelm stated staff would bring a project to a meeting with costs and how long it takes. We could tell staff this is a project we would like to do or they can bring a project to us. Chair Simmons wanted to clarify we have unallocated funds, we have funds we do not spend every year, and it would be helpful to discuss what we are spending this year versus what we want to do that would require asking for more dollars. Staff explained next month the finance director will give an update on EDA financing. It will answer some of those questions. One thing to keep in mind,historically the City Council allocates dollars to the EDA. That is our only funding source. Typically it has been $40,000 paid in monthly installments. We have operated off of that and started to allocate dollars from the fund balance into existing programs. Other commitments include the Open to Business program, operating expenses, etc. Members agree they like both these programs, let the finance director come in March to explain what the financing looks like,then make a decision on what we want to ask the City Council for or what we can approve on our own. Staff explained we have the dollars to do these things this year,but then what happens next year if the funds are used up. We have not talked about the EDA maintaining a certain level in a fund balance. It may be something to consider as we don't want to program down to our last dollar and then have something go wrong. Chair Simmons stated for tonight, if we agree these programs align with what we want to see,the creation of these additional programs can stand alone and then each year we talk about how much does each program get this year and building that with what the City Council has proposed with a longer term vision and an annual discussion of where do we want to put our dollars and proactively EDA Minutes(Regular) February 27,2020 Page 5 planning so we can meet the ask of the City Council of thinking bigger. Members were very pleased with staff's work on both these programs. Member Hudlemeyer stated both projects have merit because one is benefitting businesses and growth and the other is benefitting public space. Funding both programs makes sense. Member Bernhjelm noted the EDA is launching three new programs this year with these two and the business retention and expansion program. Chair Simmons asked staff to have a realistic expectation of these programs and what could be done this year. Staff will bring this back next month and do one of the public projects this year. C) City Council Update The City Council meeting for March 2 has been cancelled because of the election. At the previous meeting,the City Council did approve the owner's appeal for the work on the Heikkila building. She can now get a Certificate of Appropriateness which allows her to move forward with the work of putting stucco on the north and east sides of the building. She still needs to come back to the EDA to apply for a fagade improvement grant. The current grant limit is $10,000. 9. DIRECTOR'S REPORT a) February Director's Report Staff recognized Jeri Jolley as an outgoing member on the EDA. An update on EDA finances will be provided in March. The next meeting is March 26, 2020. The new Open to Business advisor will come to the April meeting. Regarding the March meeting Chair Simmons asked to review the strategic plan to include any new ideas. Chair Wilson recalled a few months ago he brought up the idea of a bus tour around the city maybe for the May or June meeting. He thought as a group we could walk around the different areas to see economic development and planning areas. Perhaps the Planning Commission could join as well and any City Council members that would like to come. Chair Simmons reminded members the meetings will start at 6:00 p.m. 10. ADJOURN MOTION by Craig, second by Bernhjelm to adjourn at 7:54 p.m. APIF,MOTION CARRIED. Respectfully submitted, C1u wtKol MRLLer Cynthia Muller Administrative Assistant CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 IYIIIIIWI Wftkl' Farmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: April 23, 2020 INTRODUCTIONIDISCUSSION Please find attached the monthly financial statements of the EDA. ACTION REQUESTED Acknowledge the monthly financial statements and ask any questions you may have. ATTACHMENTS: Type Description D Exhibit EDA-Actual Vs Budgeted Rev and Exp-April 2020 D Exhibit Financial Snapshot-April EDA Actual vs Budgeted 2020 Object January February March April May June July August September October November December Dec YTD Dec YTD Dec YTD Account Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Actual Budget 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Variance 2020 Intergovernmental 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Investment Income 588 496 478 0 0 0 0 0 0 0 0 0 1,562 2,700 (1,138) Misc Revenue 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Revenues 588 496 478 0 0 0 0 0 0 0 0 0 1,562 2,700 (1,138) Personnel Services 0 0 34,761 6,016 0 0 0 0 0 0 0 0 40,777 162,911 (122,134) 6401 -PROFESSIONAL SERVICE 0 0 0 0 0 0 0 0 0 0 0 0 0 12,000 (12,000) 6403-LEGAL 0 0 0 0 0 0 0 0 0 0 0 0 0 2,500 (2,500) 6404-IT SERVICES 731 731 731 0 0 0 0 0 0 0 0 0 2,192 8,767 (6,575) 6422-ELECTRIC 21 20 20 0 0 0 0 0 0 0 0 0 61 300 (239) 6426-INSURANCE 10 10 10 0 0 0 0 0 0 0 0 0 30 130 (100) 6450-OUTSIDE PRINTING 0 0 0 0 0 0 0 0 0 0 0 0 0 500 (500) 6460-SUBSCRIPTIONS& DUES 795 0 0 0 0 0 0 0 0 0 0 0 795 2,000 (1,205) 6470-TRAINING &SUBSISTANC 1,165 362 206 0 0 0 0 0 0 0 0 0 1,732 4,000 (2,268) 6485-MILEAGE REIMBURSEME 21 0 0 0 0 0 0 0 0 0 0 0 21 800 (779) 6570-PROGRAMMING EXPENS 555 5,538 555 0 0 0 0 0 0 0 0 0 6,648 7,733 (1,085) Services and Charges 3,298 6,660 1,521 0 0 0 0 0 0 0 0 0 11,479 38,730 (27,251) Total Exp 3,298 6,660 36,281 6,016 0 0 0 0 0 0 0 0 52,255 201,641 (149,386) Transfers In 3,333 3,333 3,333 0 0 0 0 0 0 0 0 0 10,000 40,000 (30,000) Transfers Out 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Financing Sources 3,333 3,333 3,333 0 0 0 0 0 0 0 0 0 10,000 40,000 (30,000) Net Change in Fund Balance [:6:2:4 (2,831) (32,470) (6,016) 0 0 0 0 0 0 0 0 (40,693) (158,941) 118,248 Page 1 of 1 Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 Actual Budget Unit Account Description 2020 2020 2000-HRA/ECONOMIC DEVELOPME 1010 CASH ---215,465.62 2000-HRA/ECONOMIC DEVELOPME 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE -292,073.72', 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS 1,562.08 -2,700.00' 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS 9,999.99 -40,000.00' 2000-HRA/ECONOMIC DEVELOPME 5360 REFUNDS&REIMBRSMNT-DBB 0.00 -162,911.00 2000-HRA/ECONOMIC DEVELOPME 6110 FULL TIME SALARIES 31,348.56 122,761.00 2000-HRA/ECONOMIC DEVELOPME 6152 FICA/MEDICARE 2,278.31 9,392.00 2000-HRA/ECONOMIC DEVELOPME 6154 PERA 2,351.12 9,208.00' 2000-HRA/ECONOMIC DEVELOPME 6158 EMPLOYEE BENEFITS 4,753.36' 21,550.00 2000-HRA/ECONOMIC DEVELOPME 6159 WORKERS COMP 45.54 2000-HRA/ECONOMIC DEVELOPME 6280 BOOKS&SUBSCRIPTIONS-DBB 16.06' 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 0.00' 12,000.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 0.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 2,191.74 8,767.00 2000-HRA/ECONOMIC DEVELOPME 6412 CELLULAR SERVICES-DBB 383.85 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 60.53 300.00' 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 30.29 130.00' 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 795.00 2,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 1,732.10 4,000.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE-DBB 319.80' 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 21.28' 800.00 2000-HRA/ECONOMIC DEVELOPME 6505 EQUIPMENT REPAIR/MAINT-DBB 195.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 6,647.63 7,733.00' Total 2000-HRA/ECONOMIC DEVELOPM 0.00 -3,970.00 0.00 -3,970.00' 0.00 -3,970.00 4/20/2020 9:49:38 AM Page 1 of 1 CITY O 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: 345 Third Street Fletcher Building Facade Improvement Grant Application DATE: April 23, 2020 INTRODUCTION/DISCUSSION As part of the Downtown Redevelopment Plan, business owners are encouraged to improve their buildings'front and back curb appeal through facade improvements. The EDA has approved the creation of a Downtown Fagade I mprovement Grant Program to fund matching grants of$1,500 up to$10,000 out of a pool of$20,000 annually. Attached is an application requesting$10,000 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. Ms. Heikkila is requesting a grant to assist with improvements being planned for the building.These proposed improvements include: Put new stucco on two brick walls—the north wall along the walkway between the buildings and the upper east side which faces the parking lot-$30,000+ I nstall sheet metal flashing at the roof base-$1,720 Miscellaneous electrical work-$500+ The total project cost is estimated to be over$32,000 including the grant request of$10,000.This meets the 1:1 match requirements of the program. Any work done on Heritage Landmark properties is required to follow city code 2-11-5 and 6,which subjects changes to Heritage Landmark properties to review by the city's Heritage Preservation Commission (HPC). No permit will be issued by the city unless a certificate of appropriateness has been granted by the H PC. The Heritage Preservation Commission voted to deny the certificate of appropriateness at their meeting on January 14, 2020.The City Council overturned this decision and issued a certificate of appropriateness at their meeting on February 18, 2020.The certificate of appropriateness is attached. ACTION REQUESTED Review the attached grant application and supporting materials and ask any questions you may have. ATTACHMENTS: Type Description D Exhibit 345 Third Street Facade Improvement Grant Application and Certificate of Appropriateness © Exhibit Downtown Facade Improvement Grant Program Guidelines Y AdaQ`' s� _60 ,��� fT Downtown Facade Improvement FARMINGTON Program Grant Application A BID FROM A CONTRACTOR MUST BE SUBMITTED WITH THIS APPLICATION. APPLICANT INFORMATION NAME OF APPLICANT(S) Pam Heikkila BUILDING OWNER TENANT Pam Heikkila Pam Heikkila/Heikkila Studios 349 Tti�ird Street g meESS (aka 345 Third Street) Farmington, K 55024 Farmington, 55024 PHONE PHONE 651-460-8359 651-468-9406 (cell of Pam Heikkila) pamneikkilal2@gmaii.com pamheikkilal2@gmail.com BUSINESS INFORMATION Heikkila Properties LEGAL NAME OF BUSINESS 349 Third Street ADDRESS Farmington, MN 55024 CITY, STATE,ZIP 651-460-8359 BUSINESS PHONE 20-1277980 2004 FEDERAL TAX ID# DATE ESTABLISHED OWNERSHIP INTEREST OF ALL PARTIES NAMED ON TITLE; Pam Heikkila 100% NAME INTEREST NAME INTEREST NAME INTEREST PROPERTY INFORMATION WHAT YEAR WAS THE BUILDING ORIGINALLY BUILT 1877 HAS THIS BUILDING BEEN HISTORICALLY REGISTERED? It is being taken off. PROJECT INFORMATION BRIEF DESCRIPTION OF PROPOSED PROJECT: Stucco work. It will have element of electrical and roofing people involved to ensure the ESTIMATED PROJECT COSTS EXTERIOR/FA(�ADE 30K+for stucco work. ESTIMATED COST $30K+ ELECTRICAL$500+ ESTIMATED COST TOTAL ESTIMATED COST $30K+ FUNDING INFORMATION A 1:1 match is required by the applicant.For every dollar contributed to funding eligible project costs by the Downtown FaVade Improvement Program,the applicant must contribute at least one dollar.The amount of grant to be awarded shall be$1,500 up to$10,000 according to the scale. 10,000.00 TOTAL GRANT AMOUNT REQUESTED$_($1,5 00 up to$10,000 according to 20,000.00 + the scale)APPLICANT FUNDS $ I/We declare that the information provided on this application and the accompanying attachments is true and complete to the best of my/our knowledge. I/We understand that any intentional misstatements will be grounds for disqualification and that the city of Farmington/ EDA has the right to verify this information.I/We agree to provide the project coordinator reasonable access to information and reasonable access to the construction project site so that they may monitor project implementation. APP r DATE I-VIaX ? DATE DATE A BID FROM A CONTRACTOR MUST BE SUBMITTED WITH THIS APPLICATION. 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 Fagade 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 Fletcher Building 1877 I �1'�•���,�„O�I�It`+1 AM. I�9� L _ 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 occupancy. But,the Fletcher building has been attacting clients from ' other cities for 15 years. The studio was once selected as one of the f top 20"go-to"photographers in the state by"The Knot", a nation-wide wedding magazine. r• i 1 1 i • r Stopping the Bleeding Masonry Prep Work $8,000 Stucco $311725 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 I is able to get it done this year (however it may go well in November and need j 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. 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. J i J' f 1 1 I t' t 1 1 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 itielf was recently appraised at$305,000. That is if you could find a buyer. If you look at all the buildings in town for sale, well,it is not an easy great market from a business perspective. Where does that leave us as a town? � I Rosenquist Construction Inc. 2514 24th Avenue South N Minneapolis, Mn. 55406 Phone: 612-724-1356 N Fax: 612-724-0511 August 29,2019 Project:Fletcher Building,345 3rd Street,Farmington,MN 55024 Heikkila Properties LLC 3453 rd St. Farmington,MN 55024 RE; Quote ATTN: Pam Heikkila PROJECT: Fletcher Building 1. Furnish and install Sheet Metal flashing at roof base flashing at alley and adjacent roof, 2. Furnish and install Sheet Metal flashing at the top of coping flashing. Forthe sum of------—---------------------_-------------------------------$ 1720.00 Exclude: permits PLEASE FEEL FREE TO CONTACT ME WITH ANY QUESTION YOU MAY HAVE. i Respectfully i Greg Reiser k f t t C c i t (I I t i. SMITH COLE MN LIC#BC-693563 STUCCO &STONE CONTRACT Phone: �Date:rroposal Submitted to: 651A60.8359 ,am Heikkila Job Name: lddress: New Stucco on 2 Brick Walls of Building&Chimney 149 3rd St. :ity,State And lip Code: •Job Location: Same armington,MN,55024 Estimated Project Completion: :stimated Project Start: ASAP %SAP 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 Wails 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 C, 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 ructural Work,Any Caulking,Any Heat&Cover,Any Decorative Stucco Door Work,Any Framing,Any Roof Work,Any St i out Work,Any Electrical Lines/Piping Work,Any Stair Case Work Trim Work,Any Brick Repairs,Any Gutter/Downsp NOTICE OF LIEN IN THE STATE OF MINNESOTA (SEE REVERSE SIDE) i' L k I For: Smith Cole Stucco&Stone: For: Owner: Check No: "Building The Future—Restoring The Past" 4443 Hiawatha Ave, Minneapolis, MN 55406 612.709.4980 CERTIFICATE OF APPROPRIATENESS This is to certify that the activity or work described below has been reviewed by the Farmington Planning Commission acting as the Heritage Preservation Commission (HPC) pursuant to §2-11-6 of the City Code. This Certificate of Appropriateness certifies the following: Applicant name and address of subject property: Porn Heikkila (Heikkila Properties, LLC), owner, 345 Third Street, Farmington, MN 55024 (Fletcher Building) Description of activity or work: Covering the existing brick walls on the north and east elevations of the building with stucco. Appropriate City permits are required. Date of Planning Commission/HPC review: The Planning Commission acting as the Heritage Preservation Commission reviewed the Certificate of Appropriateness at its regular meeting on January 14,2020. The Planning Commission denied the Certificate of Appropriateness as recommended by staff as the brick walls of the building are a distinguishing design feature and contribute significantly to the Fletcher building's historic and architectural values and that coating historic brick walls with stucco is not an appropriate preservation treatment. Appeal to City Council: The applicant appealed the Planning Commission's/HPC decision to the City Council. The appeal was in accordance with §2-11-5 (G) of the City Code. The City Council heard the appeal at their regular meeting on February 18, 2020. The City Council upon review of the requested Certificate of Appropriateness granted the appeal, allowing the applicant to proceed with the requested work on the building located at 345 Third Street. The requested work is to cover the north and east j brick walls with stucco. This Certificate of Appropriateness is only for the stucco work to be done on the northern and eastern walls of the Fletcher Building located at 345 Third Street. This Certificate of Appropriateness does not constitute approval, endorsement or recommendation by the Planning Commission/Heritage Preservation Commission for issuance of any City permit or license. Tony Wippler Planning Manager CITY OF FARMINGTON Downtown Facade Improvement Program Guidelines and Application 2020 City of Farmington Downtown Fagade 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 fagade 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 fagade and exterior improvements.As part of the Downtown Redevelopment Plan, business owners are encouraged to improve their buildings' front and back curb appeal through fagade 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 fagade 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. .�y $ .. Special 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 Fagade 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. PgMents 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 Fagade 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 ! t j B-1 R-2 R-1 4 i 1 r� s, Jam" t-1 B-1 r p Pine St t� R T i R-T j R-T - - Elm 8[ .:. Elm st � + + Farmington a Oa St -' R.3� s jy S ruce St +� tl R-T ! walnut SI Walnut St R-5 --- — —1 — t S t0.4 LflcrutSt R-0 + Maple �)t R-2 NM srrwx _ z Beech StN+ *R-5 R_7 .n Pros v � i 3 a Beeth St • s-� 5 City of Farmington Downtown Fagade Improvement Program Grant Agreement ofApril,ril 2020 b and between Parn This agreement is made and en=gc s 23 daY P Y (applicant), Hcikkila s nVe) at 345 Third Street, Farmington,Ilcikkila(app ` )� Minnesota (address) (hereinafter referred to as "Grantee") and the City of Farmington Economic Development Authority (EDA), a public body corporate and politic, having its principal offices at 430 Third Street,Farmington, .Minnesota (hereinafter referred to as"(grantor"). WHEREAS, the Grantor has established a Downtown Facade Improvement Program funded by the LDA to assist businesses in the downtown commercial district, as designated on the zoning map, with building facade improvements; and WHEREAS, the Grantee has applied for Downtown Fagade Improvement Program funds for facade improvements at 345 Third Street, Farmington, Minnesota(address); and WHEREAS, the Grantor has reviewed the Grantee's application and determined that the proposed improvement project meets the requirements of the Downtown Facade Improvement Program. NOW THEREFORE, in consideration of the grant, the parties agree as follows: I. The Grantor agrees to provide a maximum of$10,000 in EDA funds to the Grantee for facade improvements. 2. The Grantee agrees to use the proceeds of the grant solely for facade improvements Kith a minimum project cost of$20,000 and an estimated project cost of$32,000. 3. The project shall be completed in a timely manner and all grant funds must be used within six months from the date of the Grant Agreement. The agreement may be extended once, with the length of the extension to be determined on a case-by-case basis. 4. Grant funds will be paid on a reimbursement basis only after all improvements have been completed according to the authorized scope of work and have been accepted by the Grantor. 5, The Grant Agreement will be terminated 90 days from the date of the agreement if construction work has not yet begun. G. The Grantee shall defend, indemnity, and hold harmless the officers and employees of the Grantor from all liability and claims fQr damages arising from bodily injury, death, property damage, sickness, disease, or loss and expense resulting from or alleged to result from. Grantee's operations under this agreement. IN WITNESS WHEREOF, the parties hereto have hereby executed this agreement as of the Year and date above. r GRANTOR.: GRANTEE;: ,4 CITY OF FARMINGTON PAM HEIKKILA, HFIKKILA STUDIO BY: 13Y. G" r Com/ Com" ITS: _r 5. — ITS: �.�� CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Short-Term Recovery Program Ideas DATE: April 23, 2020 INTRODUCTION/DISCUSSION The COVI D-19 pandemic has resulted in a variety of businesses struggling in many different types of ways. I n order to combat some of these difficulties, programs and initiatives have been passed by Congress through the Coronavirus Aid, Relief,and Economic Security(CARES)Act.These programs have the tools,funds, and administration necessary to successfully implement widespread help to a variety of businesses. While most local and regional entities will be helping business owners access and navigate programs through the Minnesota Department of Employment and Economic Development(DEED) and the federal government for relief, it is also important to explore and identify ways—if any—where we can fill in gaps with our known 2020 budget without negatively impacting budgetary needs for 2021. One way the City of Farmington can look at utilizing local dollars for supporting the retention and recovery of local businesses is with the unallocated funds the EDA has within their 2020 budget. Additionally,the EDA could also reallocate funds for various EDA funded programs during 2020 to short- term recovery types of programs.We will explore a couple of these options next. However, it is important to keep in mind that as the situation changes rapidly future updates may be necessary for potential measures laid out today, certain measures may no longer work or be a feasible option, and additional ideas may arise and be better suited for the situation. At the February 27, 2020 EDA meeting there was a financing topic which outlined a draft proposal of two different types of programs which could be funded by the EDA with some of the unallocated 2020 funds. The first was a Redevelopment and Property Reinvestment Program and the second was a Public Space I mprovement Program. Both programs were well received by the EDA and were moved into a finalization stage to be brought back to the EDA for final approval along with specific projects and ideas which would work for either program and could be accomplished within 2020. However, in light of the current situation, it may be best to re-work and pivot the 2020 funds of these draft program ideas into short-term recovery programs or implement these draft program ideas on a smaller scale to test to capability of the program for longer-term implementation. Business Recovery Programs with EDA Funds Utility Fee Program An EDA funded recovery program could be a program which focuses on the utility bill fees specifically for all businesses with under 500 employees and all business sectors which had to close down/reduce operations because of Minnesota Executive Orders 20-04 and 20-08.This option provides direct assistance grants to eligible businesses in Farmington which include restaurants, coffeehouses, bars, fitness centers,spas, barber shops, etc.which we have throughout the city. The requirements from a business to participate in the Utility Fee Program would be: • Be business with under 500 employees or prove that they are an eligible business who had to close down/reduce operations due to Minnesota Executive Orders 20-04 and 20-08. • Fill out an application for the Utility Fee Program. • I nclude a copy of their current utility bill. Once an eligible business submitted all necessary information and was approved,the business would receive a one-time grant of$500 which would be directly paid from the EDA to utility billing within the City of Farmington. I n addition to helping these eligible businesses with utilities,this type of recovery program would provide the EDA a platform to ensure that these businesses are aware of other state and federally funded programs for current relief which many Farmington businesses also qualify for. Knowing that as an EDA our financial tools are limited,we want our community businesses to be directly using and maximizing financial benefit from state and federal funding as much as possible. Restaurant Recovery Program At the April 13, 2020 City Council meeting,the Council took action on waiving liquor license fees for April 2020 since these businesses cannot be open to sell alcohol. An option the EDA can discuss is having a recovery type of program for restaurants which would be similar to the utility fee program outlined above.This type of short-term recovery program would be crafted specifically to help restaurants with their next liquor license renewal.This option provides direct assistance grants to restaurants and businesses in Farmington which require a liquor license as a part of their business operations. The requirements from a restaurant business to participate in the Restaurant Recovery Program would be: • Be a business which requires a liquor license, club and Sunday license, or a beer and wine license as part of the business operations. • Fill out an application for the Restaurant Recovery Program. Once an eligible business submitted all necessary information and was approved,the business could receive a one-time grant of$500 which would be directly paid from the EDA to the liquor license payment required within the City of Farmington.A one-time grant of$500 allows the EDA to help out restaurants and businesses which require a liquor license($3,700/year),a club and Sunday license($500/year), and the beer and wine license($550/year)for their next required liquor license payment.There are currently eight businesses which require the liquor license and a handful of other businesses which qualify under the club and Sunday and beer and wine license. Redevelopment and Property Reinvestment Program This program is the same as the draft program idea presented at the February 27, 2020 EDA meeting. It may be important to still have a program in 2020 which focuses on the general concepts laid out in the draft Redevelopment and Property Reinvestment Program. Businesses will be impacted in a variety of ways and not every business may fall under a state and federal CARES Act program or initiative.A business may run into other issues such as minor or significant repairs needed for their site or property during this time. By still offering the Redevelopment and Property Reinvestment Program during 2020 it may provide a necessary benefit to current businesses to stay open and operational or incentivize an incoming developer.This would allow businesses to still access financial help for their business if their struggle revolves around repairing a deteriorating building, an unexpected plumbing repair, or even redeveloping a property during this time.The original$50,000 proposed at the February 27, 2020 EDA meeting should remain. By still allowing the Redevelopment and Property Reinvestment draft program idea to be implemented in 2020, it also allows the EDA to test to validity of the program. Areas for Increasing Recovery Program Ideas with EDA Funds If the EDA wishes to fund recovery types of programs,the budget for these recovery programs depends on how the EDA wishes to allocate its funds.Any recovery program idea can increase their funds by un- allocating EDA funds from other areas of the 2020 budget and reallocating it into recovery items without entering into 2021 with a budget deficit.The following are areas the EDA could move allocated budget funds from specific programs to a short-term recovery program(s): • Facade Grant Program—up to$20,000 •Site Readiness Program—up to$20,000 • Rambling River Center Plaza Fund which was earmarked in mid-2018—up to$100,000 ACTION REQUESTED Continue to provide a platform for promoting current state and federal resources to our local businesses while potential local recovery programs are vetted through. Discuss the idea to shift EDA efforts into local short-term recovery types of programs with the Utility Fee Program,the Restaurant Recovery Program, and/or the continuation of the Redevelopment and Property Reinvestment Program. If local short-term programs are funded through the EDA, a decision should be made as to whether or not the EDA would like to only use current unallocated funds in the budget or if additional funds should be used by reallocating EDA funds from other program sources which be utilized for the 2020 budget only. ATTACHMENTS: Type Description ❑ Exhibit Federal COVI D-19 Programs ❑ Exhibit Minnesota COVI D-19 Programs ❑ Exhibit Minnesota Executive Order 20-04 ❑ Exhibit Minnesota Executive Order 20-08 ❑ Exhibit Redevelopment and Property Reinvestment Draft Program From February 27, 2020 EDA Meeting United States Small Business Administration (SBA) COVID-19 Loans Businesses can learn more information and how to apply at sba.gov Working Capital Loan—Up to$2 million with terms up to 30 yea Interest Rates—Small Businesses(under 500 emplyees): 3.75% Most Private, Non-Profits,and Faith-Based Organizations: 2.75% Primary Criteria for EIDL Loan Approval—Acceptable credit history&ability to repay the loan. The eligibility of the loan is based on the size,type of business,and financial resources. Eligible Uses of the EIDL Loan—Fixed debt(rent,etc.), payroll,accounts payable,and some additional bills. EIDL Emergency Advance—Advance of up to$10,000 within 3 days of a successful application submittal. The EIDL advance loan will not have to repaid regardless of the loan decision. SBA Express Bridge Loan—Access up to$25,000 quickly while applying and waiting for the EIDL Loan. The Express Bridge Loan will be repaid by proceeds of the EIDL Loan. SBA Paycheck Protection Program (PPP) CEligibility w Federal Loan—$350 billion pool with guaranteed loans of up to$10 million to eligible businesses. —Must be a small business(fewer than 500 employees)or an eligible non-profit,veteran organization,sole proprietorships,self-employed, independent contractor. Eligible Uses—Pay up to 8 weeks of payroll costs+benefits Can also be used for paying rent, utilities,and interest on mortgages Forgiveness Conditions—Loan is used for approved costs,employee numbers are maintained,and their compensation levels are maintained. Interest Rates—6 month deferral with a 2-year repayment term at 1%interest if the loan is not forgiven. PPP Loans are available until June 30, 2020 The SBA will pay for the principal and interest of: — Current 7(a),the lender portion of 504 loans,and SBA microloans for 6 months — New 7(a) loans issued prior to September 27,2020 for 6 months Minnesota Department of Employment and Economic Development Loans Businesses can learn more information and how to apply at mn.gov/deed Minnesota Business LoanProgrnm Loan Program—Provides an 80%guarantee up to a maximum of$200,000 Businesses must apply for assistance through lenders which are enrolled in the program. Loan Program Fee—A fee of 0.25%on the guarantee loan principal will be changed for each loan enrolled into the program. Loan rate,term,and collateral is determined by each lender. Eligible Businesses—Minnesota businesses with less than 250 employees. Eligible Uses of the Loan Include: - Machinery or equipment purchases, maintenance,or repairs - Expenses relating to moving into or within Minnesota - Working capital when the working capital is secured by fixed assets whem possible - All uses must be exclusively for Minnesota operations Lender contact info—mn.gov/deed/business/financing-business/deed-programs/loan-guarentee Minnesota • Loan Program—Loans will be interest free and range from$2,500-$35,000 from a pool of$30 million. Businesses must apply for assistance through a certified lender. Loan Repayment—5 year loan at 0%interest. First payment will be deferred for 6 months. Partial loan forgiveness may be available. Eligible Businesses—Small businesses directly and adversely affected whose industry is listed in Minnesota Executive Orders 20-04 and 20-08. Nonprofits are not eligible. Eligible Uses of the Loan—Operating expenses, rent or mortgage payments, payroll for current employees,and working capital. Loan cannot be used to pay or refinance past debt. %r---ms/peacetime The Shared Work program offers an alternative to layoffs for employers facing a temporary downturn. Administered by DEED'S Unemployment Insurance Division,the program allows employers to divide available hours of work among a group of employees instead of implementing a full layoff.These employees may then receive partial unemployment insurance benefits while working reduced hours. The purpose of Shared Work is to avoid a layoff, not to subsidize wages. This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/Irl/execorders/execorders.asp STATE OF MINNESOTA Executive Department i i Governor Tim Walz Emergency Executive Order 20-04 Providing for Temporary Closure of Bars, Restaurants, and Other Places of Public Accommodation I,Tim Walz,Governor of the State of Minnesota,by the authority vested in me by the Constitution and applicable statutes,issue the following Executive Order: The COVID-19 pandemic presents an unprecedented challenge to our State. Minnesota has taken proactive steps to ensure that we are ahead of the curve on COVID-19 prevention and response. On March 13,2020,I issued Executive Order 20-01 and declared a peacetime emergency because this pandemic,an act of nature,threatens the lives of Minnesotans,and local resources are inadequate to address the threat. Confirmed cases of COVID-19 in Minnesota are rapidly increasing. On March 15,2020, Minnesota detected the first confirmed cases caused by"community spread"—infections not epidemiologically linked to overseas travel. This development requires Minnesota to take additional proactive measures,including enhanced community mitigation,to slow the spread of this pandemic. Slowing the spread of COVID-19 is critical to ensuring that our healthcare facilities remain able to accommodate those who require intensive medical inteiwention. In this time of uncertainty and peacetime emergency, Minnesotans must continue to maintain their essential activities.I encourage supermarkets,pharmacies, and other establishments providing essential retail goods and services to remain open, subject to best practices,including social distancing,established by the Centers for Disease Control and Prevention and the Minnesota Department of Health. That said, certain other public accommodations in which Minnesotans congregate pose a threat to the public health by providing environments for the spread of COVID-19. Pursuant to Minnesota Statutes 2019,section 12.2 1, subdivision 3(1),the Governor may "make, amend,and rescind the necessary orders and rules to carry out the provisions"of Minnesota Statutes,Chapter 12. When approved by the Executive Council and filed in the Office of the Secretary of State, such orders and rules have the force and effect of law during the peacetime emergency. Any inconsistent rules or ordinances of any agency or political subdivision of the state are suspended during the pendency of the emergency. Any person who willfully violates 1 such an order or rule is guilty of a misdemeanor and upon conviction must be punished by a fine not to exceed$1,000 or by imprisonment for not more than 90 days. For these reasons, I order as follows: 1. Beginning no later than March 17,2020 at 5:00 pm, and continuing until March 27, 2020 at 5:00 pm,the following places of public accommodation are closed to ingress, egress,use, and occupancy by members of the public: a. Restaurants,food courts,cafes, coffeehouses, and other places of public accommodation offering food or beverage for on-premises consumption, excluding institutional or in-house food cafeterias that serve residents, employees,and clients of businesses,child care facilities,hospitals, and long- term care facilities. b. Bars,taverns,brew pubs,breweries,microbreweries,distilleries,wineries, tasting rooms,clubs,and other places of public accommodation offering alcoholic beverages for on-premises consumption. c. Hookah bars, cigar bars,and vaping lounges offering their products for on- premises consumption. d. Theaters, cinemas,indoor and outdoor performance venues, and museums. e. Gymnasiums,fitness centers,recreation centers,indoor sports facilities, indoor exercise facilities,exercise studios, and spas. f. Amusement parks,arcades,bingo halls,bowling alleys, indoor climbing facilities, skating rinks,trampoline parks, and other similar recreational or entertainment facilities. g. Country clubs,golf clubs,boating or yacht clubs, sports or athletic clubs, and dining clubs. 2. Places of public accommodation subject to this Executive Order are encouraged to offer food and beverage using delivery service, window service, walk-up service, drive-through service,or drive-up service,and to use precautions in doing so to mitigate the potential transmission of COVID-19, including social distancing. In offering food or beverage,a place of public accommodation subject to this section may permit up to five members of the public at one time in the place of public accommodation for the purpose of picking up their food or beverage orders, so long as those individuals are at least six feet apart from one another while on premises. 3. This Executive Order does not prohibit an employee,contractor,vendor, or supplier of a place of public accommodation from entering,exiting, using, or occupying that place of public accommodation in their professional capacity. 2 4. The restrictions imposed by this Executive Order do not apply to any of the following: a. Places of public accommodation that offer food and beverage not for on- premises consumption, including grocery stores,markets,convenience stores, pharmacies,drug stores, and food pantries,other than those portions of the place of public accommodation subject to the requirements of section 1; b. Health care facilities, child care facilities,residential care facilities, congregate care facilities,and juvenile justice facilities; c. Crisis shelters,soup kitchens,or similar institutions; and d. Restaurants and food courts inside the secured zones of airports. 5. For purposes of this Executive Order, "place of public accommodation"means a business,or an educational,refreshment,entertainment, or recreation facility, or an institution of any kind,whether licensed or not,whose goods,services, facilities, privileges,advantages,or accommodations are extended, offered, sold,or otherwise made available to the public. 6. This Executive Order does not alter any of the obligations under law of an employer affected by this Executive Order to its employees or to the employees of another employer. 7. Pursuant to Minnesota Statutes 2019, section 12.45, a person who willfully violates paragraphs 1 of this Executive Order is guilty of a misdemeanor and upon conviction must be punished by a fine not to exceed$1,000,or by imprisonment for not more than 90 days. 8. Local law enforcement and public health authorities are directed to monitor and enforce this Executive Order in accordance with the law. 9. The prohibitions set forth in paragraph 1 may be extended by a future Executive Order and with approval of the Executive Council. Pursuant to Minnesota Statutes 2019, section 4.035, subdivision 2,and section 12.32,this Executive Order is effective immediately upon approval by the Executive Council. It remains in effect until the peacetime emergency declared in Executive Order 20-01 is terminated or until it is rescinded by proper authority. A determination that any provision of this Executive Order is invalid will not affect the enforceability of any other provision of this Executive Order. Rather,the invalid provision will be modified to the extent necessary so that it is enforceable. 3 Signed on March 16,2020. Ti alz Governor Filed According to Law: W.A� r � Steve Simon Secretary of State Approved by the Executive Council on March 16, 2020: Alice Roberts-Davis Secretary,Executive Council. Filed on March 16, 2020 Office of the Minnesota Secretary of State, Steve Simon 4 RESOLUTION RESOLVED, by the Executive Council of the State of Minnesota,at its emergency meeting on March 16, 2020,that it approves the following: Emergency Executive Order 20-04"Providing for Temporary Closure of Bars, Restaurants,and Other Places of Public Accommodation" Approved by Executive Council DATE: March 16, 2020 BY: �� This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/iri/execorders/execorders.asp STATE OF MINNESOTA Executive Department VOX Dtr �li l�gi Governor Tim Walz Emergency Executive Order 20-08 Clarifying Public Accommodations Subject to Executive Order 20-04 I,Tim Walz,Governor of the State of Minnesota,by the authority vested in me by the Constitution and applicable statutes, issue the following Executive Order: On March 16, 2020, I issued Executive Order 20-04 ordering the closure of bars,restaurants, and other places of public accommodation("Executive Order 20-04"). Under Paragraph 1(e)of Executive Order 20-04, spas were ordered to close until 5:00 pm on March 27, 2020. Questions have arisen regarding the applicability of spa closures to salons,barbershops, and similar establishments. For these reasons, I order as follows: I. Paragraph Le. of Executive Order 20-04 is amended by the following additions (indicated by underlined text)and deletions (indicated by strikethroughs): Gymnasiums,fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios, and spas tanning establishments, body art establishments tattoo parlors,piercing parlors businesses offering assage therapy or similar body work spas salons nail salons cosmetoloPy salons, esthetician salons advanced practice esthetician salons eyelash salons, and barber shops. This includes but is not limited to all salons and shops licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota Board of Barber Examiners. 2. All other provisions of Executive Order 20-04 remain in effect. Pursuant to Minnesota Statutes 2019, section 4.035, subdivision 2,this Executive Order is effective immediately. It remains in effect until the peacetime emergency declared in Executive Order 20-01 is terminated or until it is rescinded by proper authority. A determination that any provision of this Executive Order is invalid will not affect the enforceability of any other provision of this Executive Order. Rather,the invalid provision will be modified to the extent necessary so that it is enforceable. 1 Signed on March 18, 2020. 4!! Tim Walz Governor Filed According to Law: Steve Simon Secretary of State Filed on March 18, 2020 Office of the Minnesota Secretary of State, Steve Simon 2 CITY Cfl` © 43o Third St., Farmington, MN 55024 FARMINGTON 651-28o-6800 FarmingtonMN,gov City of Farmington Redevelopment and Property Reinvestment Program DRAFT IDEA In conjunction with various city adopted plans,such as the Downtown Redevelopment Plan and Trunk Highway 3 Corridor Plan, it has been acknowledged that redevelopment needs to focus on retaining, reinvesting,and reinvigorating underutilized sites, buildings,and properties within our commercial and industrial areas.This draft program idea for redevelopment and property reinvestments is intended to directly aid current property owners/leaser and incentivize potential future property owners/leasers in key areas of the city.These areas encompass our downtown area,the industrial park,the TH 3 corridor, and other vital commercial and industrial areas within the city.The smartboard will be utilized during the EDA meeting with our online zoning map to show all properties currently eligible under the draft idea program.The goal is to provide a new EDA funded program in order to positively impact, revitalize, and reinvest in multiple areas throughout the City. By providing funding for unutilized and underutilized sites for reinvestment and redevelopment, it will provide opportunities and support for increasing our tax base, revitalizing vacant properties,and strengthening all commercial and industrial areas throughout the city. Chapter 3 of the Downtown Redevelopment Plan outlines a market analysis which was conducted to identify categories of retail demand which is leaving the area,yet would be a good "fit" in a downtown location.These categories included gift shops,drugstores, hair salons,children and family friendly shops, salons,and casual and sit down restaurants. By providing an EDA funded program which fosters redevelopment and reinvestment upgrades within vacant and underutilized sites,we are able to prep buildings and properties,especially in our downtown area,to be able to fill with new commercial uses and draw residents to commercial/retail uses within city limits.This program also has a special focus on key properties such as the old Dakota Motors building because redevelopment of this property is significant to providing momentum for additional redevelopment downtown. The guidelines of the Redevelopment and Property Reinvestment Program could look like the following(formatting exception:lists have been pulled out into bullet points for easier review): The Economic Development Authority(EDA) has made funding available to properties zoned commercial, industrial, and other districts which include a commercial or industrial component.This criteria includes the following zoning districts: R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use,and Mixed Use Commercial/Residential within City of Farmington limits.This program is focused on retaining, reinvesting,and reinvigorating unutilized and underutilized sites, buildings,and properties.This program is available to provide assistance with financing for projects which focus on building improvements and code improvements in order to remove barriers faced by current and future property owners and leasers for reinvestment, reuse,and redevelopment of a property. CITY OF ® 43o Third St., Farmington, MN 55024 FARMINGTON 0 651-280-6800 �"— (D FarmingtonMN.gov Eligible Properties Any property within the City of Farmington which is within commercial or industrial zoning districts or within a district with a commercial or industrial component.This criteria includes properties zoned R-T, B-1, B-2, B-3, B-4, Business/Commercial Flex, 1-1, IP, Mixed Use,and Mixed Use Commercial/Residential. Funding Source EDA discussions have concluded with the desire for additional program financing around$20,000 annually. However,depending on the type of projects the EDA is hoping to attract through this program, there will be a need in dedicating a large portion of the unprogrammed funds in the current EDA balance or requesting for additional funds from the City Council or outside sources. EDA fund balance of$50,000 annually.This could allow for 5 large and meaningful projects a year with projects that provide up to a $10,000 match. Raising the maximum limit for a single project funding above$10,000 can be discussed. 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 Term and 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 commercial and industrial districts and districts with commercial and industrial components to foster property improvements and redevelopment growth within the City of Farmington.The focus of the program will be those properties currently for sale or lease and properties in need of assistance for building improvements and code violation improvements.A strategic and targeted focus within this program can be for the Trunk Highway 3 corridor since the Trunk Highway 3 Corridor Plan outlines property reinvestment and redevelopment as an objective of the program.The intent is to provide assistance to: • Current property owners who are looking to update and fix issues on their property in order to make it more appealing to potential buyers and leasers. CITY OF O430 Third St., Farmington, MN 55024 FARMINGTON a 651-280-6800 "'- Farmington MN.gov • Current property owners who have underutilized sites and are in dire need of buildings improvements,code improvements,facility upgrades,and rehabilitation in order to retain and reinvigorate their site, increase the property value,and draw additional employees to their site. • Attract potential buyers and leasers who are interested in a property or building for sale/lease. This program may give incentive to purchase the property or lease the building with the conditions"as is"when they would not purchase or lease otherwise. o This program would allow new property owners/building leasers to have a more successful start when handling the finance of known monetary improvements needed. o This program can also be a potential resource for unknown extra financial burdens for building and code improvements which arise causing additional financial burdens and potential end of projects. • Leaseholders who are currently leasing a portion or the entirety of a building can also be eligible. o The owner of the property must also join in with the application and comply with program requirements o These type of applications will be reviewed thoroughly to determine program funding eligibility ■ Additional things to consider of applications from leaseholders: • When does their current lease expire? • Do they intend to remain in the same space with a new lease or are they planning on switching locations when the lease is over? • How long have they had their business in Farmington? 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 property within the R-T, B-1, B-2, B-3, B-4,Business/Commercial Flex, 1-1, IP, Mixed Use,and Mixed Use Commercial/Residential within City of Farmington limits seeking to obtain assistance under the terms of this program. CITY OF Q� 430 Third St., Farmington, MN 55024 FARMINGTON O 65i-28o-6800 Ad9! Farmington MN.gov 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 Any property within the R-T, B-1, B-2, B-3, B-4,Business/Commercial Flex, 1-1, IP, Mixed Use,and Mixed Use Commercial/Residential within City of Farmington Eligible Improvements Funds may be used for building improvements and code improvements which are permanent and anchored to the site of improvements (mechanical,electrical, plumbing,etc.).The project being funded needs to be improvements which will help redevelop,maintain,and/or expand the variety of options to use the existing property. Funds may be used for, but not limited to: • Correcting/improving code violations o Paving, resurfacing,etc. • Correcting handicap accessibility issues o Eliminate accessibility restrictions • Fix current deterioration/blight of structure(s) • Prevent potential future deterioration/blight of structure(s) • Roofing,siding,windows, and doors • Plumbing o Repair and replacement of fixtures and appliances,filtration systems, backflow prevention, line and hose repair and replacement,sump pump • Elevator install/update • Heating and air conditioning systems/HVAC controls and upgrades • Gas piping • Ventilation • Solar panels/other types of solar photovoltaic • Installing more energy efficient windows,skylights,etc. • SAC Credits o There is a substantial fee by the Metropolitan Council and a city fee which must get paid before a business opens.We could provide a "sale"or cost share for the city fee portion CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON o 651-280-6800 Farmington MN.gov as a way to promote restaurants so Farmington is a more competitive area for these types of business which would require additional SAC units • Sealing air leaks around floors,walls,ceilings,windows, doors,and fireplaces with caulk,spray foam,or weather stripping • Insulation to attic,crawl spaces or basements, and exterior walls • Seal ducts and make sure they are straight and properly connected • Sprinkling a building • Demolition • Reconfiguration of interior space to suite a new user and provide lower cost space to small and medium sized businesses. Multi-tenant buildings allows for a variety in businesses and increases the potential draw downtown and other areas of the city. • *Fagade improvements o Focus would be more on repairs and replacement for deteriorating buildings. It would not be aesthetically based repairs or additions Ineligible Projects • Any improvements(furniture,equipment,etc.)which can be removed when the tenant/owner leaves o Removable fixtures • Business and operating costs • Acquisition costs • Costs prior to acceptance of application Special Conditions Contractors All project work undertaken with City of Farmington funds must be completed by bona fide contractors who are licensed (as applicable)and provide proof of insurance. Data Privacy All information provided by applicants under the Downtown Fagade Improvement Program shall be maintained in accordance with the Minnesota Data Practices Act. 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. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON (&) 65i-28o-6800 Farmington MN.gov Procedures *For reference,the procedures listed below match the Downtown Fagade Improvement Program 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 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON O 651-28o-6800 �■ Farmington MN.gov 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. 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. CITY OF 1) 43o Third St., Farmington, MN 55024 FARMINGTON © 651.280.680° Farmington MN.gov Appeals Process Appeals concerning eligibility for the Downtown Fagade 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. cI-ev OF O 430 Third St„ Farmington, MN 55024 FARMINGTON © 651-28o-6800 r Farmington MN.gov 1111111 TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: April Director's Report DATE: April 23, 2020 INTRODUCTION/DISCUSSION Open to Business Q1 Report Please see the attached first quarter report for Open to Business. I will have Karen join us at an upcoming meeting to talk more about the successes of the program and other ways we can utilize her skills for Farmington businesses. Online Resources City staff actively tracks a variety of programs, resources, and news events related to economic recovery efforts. New resources are being added to the city's website as they become available. Information is also regularly pushed out via the city's social media channels so that people can receive it as quickly as possible. NEXT MEETING Our next regular meeting is scheduled for May 28. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description D Exhibit Open to Business Q1 Report DAKOTA 0 PEN COUNTY TO BUSINESS Ql 2020 Activity Overview TECHENCIAL ASSISTANCE HOURS Financing: Clients Served: 81 Loans Approved 1 02B Direct Lending $15,000 Client Direct Contact Hours Leveraged $3,000 Quarter 1 (Bank/Owner Equity/Other Outside 2019—274.25 Financing) 2020-315.10 02B had worked on underwriting 3 Percent Increase YoY: 14% specific loans for Q 1 that were put on hold due to the State Exec Orders. A CLEINT BY CITY general overview of the work: Client City: Residence Business 1. Business Acquisition: Lakeville. Apple Valley 3 3 • This was put on hold initially Burnsville 12 12 because the owner needed Eagan 11 11 additional upfront financing Farmington 7 7 to fulfill an SBA loan Hastings 4 4 requirement. In good faith Inver Grove Heights 4 4 02B completed the loan Lakeville 13 13 package and moved Mendota Heights 2 2 forward with loan committee Rosemount 7 7 approval. The bank called the following week to let us S.St. Paul 2 2 know the request will not be W.St. Paul 3 3 moving forward at this time. 2. Business Acquisition: Hastings. This activity was waiting for business valuation when the REFERAL SOURCE State Executive Orders moved forward. 3. Business Re-Finance: S.St. Paul The owner was looking to 32 34 refinance a parking lot bank loan. 02B completed the underwriting and at the time 15 of the State Executive Orders we were waiting for Web • Municipality Other completed 2019 tax documents.