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HomeMy WebLinkAbout02-27-20 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 OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Bernhjelm, second by Craig to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTSITRESENTA 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 fagade 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, C&I'tlni a mu-Uer Cynthia Muller Administrative Assistant